Leading US indexes are falling
The index of U.S. leading indicators fell in November for the fifth month of the last seven months, reflected the deteriorating outlook, which led the Fed to lower interest rates and principal to take the purchase of securities to refinance U.S. companies and stimulate lending. The index of leading indicators are calculated from the Conference Board and aims to determine the direction in which the U.S. economy over the next three to six months.
The value of the index fell by 0.4 percent in November, after decreasing by 0.9 percent in the previous month, reported by the New York-based organization today. This indicator is the average value of the following indicators: production contracts, the amount of requests received unemployment benefits, monetary indicators mass M, the size of the average workweek, building permits, the prices of basic shares' orders for goods for long-term use, the index of consumer confidence. It is believed that he characterized the development of the economy over the past 6 months. Also there is empirical rule that if the value of this indicator has a negative effect for 3 months in succession, it is an indicator of slowing economic development.
Six of forming 10 leading indicator index fell by the biggest reduction is in building permits, stock prices and applications for unemployment benefits.
Labels: Financial News
posted by Zoritza Petrova @ 11:45 AM
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