WLI Growth at 16-Year High

A gauge of the U.S. economy rose last week to its highest level in over three years, strengthening hopes for a comeback in the economy, a report showed on Friday.

The Economic Cycle Research Institute, a private forecasting group, said its weekly leading index rose to 127.4 in the week ended July 18 from 126.8 the prior week.

"The index is on fire," said Lakshman Achuthan, ECRI managing director.

The index's growth rate, an annualized rate for the four-week moving average that evens out weekly fluctuations, rose to a 16-year high of 10.7 percent from 9.7 percent the previous week.

"We're in line for stronger growth at the end of the year and into next year. Still, it's likely to be consumer-led growth, with the manufacturing side remaining soft," Achuthan added.

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