WLI Growth at 18 Month High

Reuters
June 12, 2009

(Reuters) - A gauge of future U.S. economic growth rose along with its yearly growth rate, reaffirming hope that yearly growth will turn positive in the summer months, a research group said on Friday.

The Economic Cycle Research Institute, a New York-based independent forecasting group, said its Weekly Leading Index rose to a 34-week high of 115.4 for the week ending June 5, from 113.5 the previous week.

In recent weeks, the group has forecast that the U.S. recession will end sometime during this summer, as its yearly economic growth reading rebounds from late-2008 lows.

The index's annualized growth rate spiked to a one and a half year high of minus 4.7 percent from the prior week's rate of minus 7.1 percent.

It was ECRI's highest yearly growth reading since the week ended December 7, 2007, when it stood at minus 3.9 percent.

"With WLI growth rising to its best reading in a year and a half -- namely, since the recession began -- economic recovery prospects are brightening rapidly," said Lakshman Achuthan, managing director at ECRI.

The weekly index rose in the latest week due to higher commodity prices and stronger housing activity, Achuthan said.