The U.S. leading economic index increased more than expected in April, signaling that recession may end later this year, according to a research report released on Thursday, Xinhua reported.
The New York-based Conference Board said on Thursday that its index of leading economic indicators, designed to forecast economic activity in the next three to six months, rose 1 percent last month. Economists had expected an increase of 0.8 percent.
The upward reading comes after a 0.2-percent decline in March and a 0.5-percent decline in February.
Conference Board's leading economic index is derived from 10 components including stock prices, the money supply, jobless claims and new orders by manufacturers.
Seven indicators rose, including stock prices, as the Wall Street rallied more than 30 percent from early March's lows. Consumer expectations, the average work week, manufacturers' new orders for consumer goods and deliveries by vendors also grew, while initial jobless claims fell.
"The leading indicators suggest that while the recession will continue in the near term, the declines will be less intense. The question is how long before declines in activity give way to small increases," Conference Board economist Ken Goldstein said. "If the indicators continue on the current track, that point might be reached in the second half of the year."
Established in 1916, the U.S. Conference Board is the world's preeminent business membership and research organization, best known for its monthly U.S. consumer confidence index and the leading economic indicators.
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