May 9 update, WLI Rises

The risk that the U.S. economy could slip back into recession is abating but a full-throttle recovery is not in sight either, a report showed on Friday.

A broad gauge of U.S. economy that accounts for everything from investment risk to job market health, the Economic Cycle Research Institute's weekly leading index climbed to its highest level in 10 months last week.

"It's telling us a recession is not imminent, but a strong recovery is not in front of us either," said Lakshman Achuthan, ECRI managing director.

ECRI's weekly leading index grew to 121.8 in the week to May 2, the highest level since July 2002, from 119.4 in the prior week.

Another potential omen of better days ahead, the economic barometer's growth rate, which smoothes out weekly volatility in the numbers, edged up to 0.6 percent. It was the highest reading in close to a year, and well above the preceding week's flat, 0.0 percent, reading.

The Weekly Leading Index is composed of seven major economic indicators. ECRI designs short- and long-term indexes aimed at predicting business cycles, recessions and recoveries in the world's leading economies.