The Conference Board says that economic indicators point to continued weak growth through fall and winter.The Board's Index of Leading Economic Indicators increased 0.3 in August following a 0.6 increase in July and a 0.3 increase in June.
According to CB economist Ataman Ozyildrim,the August increase was driven by components measuring financial and monetary conditions which offset substantially weaker components measuring expectations.The growth trend in the LEI has moderated and positive and negative contributors to the index have been roughly balanced.The indicators point to rising risks and volatility,and increasing concerns about the health of the expansion.
Ken Goldstein,another CB economist,said there is growing risk that sustained weak confidence could put downward pressure on demand and business activity,causing the economy to potentially dip into recession.While the chance of that happening remains below 50/50,the odds have certainly increased in recent months.
The Conference Board is a global,non-profit,independent business membership and research organization working in the public interest.It strives to provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society.
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