US LEI: Nine consecutive months of gains  - Wells Fargo

The Leading Economic Index (LEI) continued its upward trend in May, explained analysts from Wells Fargo, consistent with their expectations for a continued moderate expansion.

Key Quotes: 

“The LEI increased 0.3 percent in May, marking its ninth consecutive month recording a gain. Eight of the components added to the topline figure, while only one subtracted from it.”

“Building permits was the only component that weighed on the index, shaving off 0.15 percentage points from the topline figure. This is consistent with housing starts data for May, in which both single-family and multifamily starts declined.”

“The interest rate spread component was, once again, the largest contributor to the index in May, adding 0.16 percentage points. Consumer expectations added an additional 0.08 percentage points—sentiment remains optimistic.”