A 0.4 pct rise in the March U.S. index of leading indicators points to continued moderate U.S. real economic growth economists said. The report is consistent with a modestly growing economy said Steve Slifer of Lehman Government Securities Inc. The economy is not robust but were not heading into a recession either. The report suggests more of the same: continued moderate growth said Ward McCarthy of Merrill Lynch Government and Co Inc. The gain was mostly in stock prices. There was no change in the fundamental movement of the economy. The Commerce Department said that higher stock prices led the March gain. Unemployment claims vendor performance contracts and orders for plant and equipment manufacturers orders and building permits also were positive. The average workweek raw materials prices and money supply detracted from the index. Economists noted that the index signals the direction but not the magnitude of changes in gross national product. You cant derive profound conclusions on the economy from the report McCarthy said. The link between leading indicators and the economy is not strong.
U.S. MARCH LEADING INDEX SIGNALS MODEST GROWTH