More signs that the recession may be ending: The index of U.S. leading economic indicators rose 1.2 percent in May, following a 1.1 percent gain in April. A Bloomberg News survey of economists had forecast the increase at 1 percent, which means the economy is now stronger than even the most seasoned watchers expected.
That 1.2 percent increase was the biggest gain since March 2004. Put together, the past two months have shown the biggest two-month rise in the indicators since 2001.
And what are those leading indicators? There are ten in all. Seven of them increased in May:
* Real money supply
* Building permits
* Interest rate spread
* Consumer expectations
* Stock prices
* Vendors' deliveries of supplies to companies
* Manufacturers' new orders for nondefense capital goods
Three of them declined in May:
* Claims for jobless aid
* Average weekly manufacturing hours
* Manufacturers' orders for consumer goods
So now you know.
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