WLI Climbs to 18-month High

Reuters
January 08, 2010

(Reuters) - A weekly measure of future U.S. economic growth rose in the latest week as its yearly growth rate declined, indicating signs of continued strengthening in the economy, a research group said on Friday.

The Economic Cycle Research Institute, a New York-based independent forecasting group, said its Weekly Leading Index climbed to a 78-week high of 131.5 for the week ended Jan. 1, from an downwardly revised 130.7 the prior week, which was originally reported as 131.2.

The index's annualized growth rate slipped to a five-week low of 23.6 percent from 24.0 percent the previous week, which was also revised down from 24.2 percent.

It was the lowest yearly growth figure the index has seen since reaching a record high of 28.1 in early October.

"With the WLI climbing to a one-and-a-half-year high, the U.S. economy is firmly set to strengthen in the coming months," said Lakshman Achuthan, Managing Director at ECRI.

Last week Achuthan told Reuters that steady growth in the leading index signals continuing improvement in economic activity and the jobs market for the near-term.