Reading time ( words)
The Conference Board Leading Economic Index (LEI) for the U.K. increased 0.4 percent in April to 113.6 (2010 = 100), following a 0.3 percent increase in March, and a 0.7 percent increase in February.
At the same time, The Conference Board Coincident Economic Index® (CEI) for the U.K., a measure of current economic activity, increased 0.2 percent in April to 106.0 (2010 = 100), following a 0.2 percent increase in March, and a 0.2 percent increase in February.
In April, the LEI for the U.K. advanced for the fifth consecutive month. As a result, its six-month growth rate has improved considerably with widespread strength among its components. Meanwhile, the CEI has been increasing modestly in recent months and its six-month growth rate has also improved. Taken together, the current behavior of the composite indexes suggests that the economy is likely to continue to moderately grow throughout the summer, and growth could potentially pick up.
About The Conference Board Leading Economic Index (LEI) for the U.K.
The composite economic indexes are the key elements in an analytic system designed to signal peaks and troughs in the business cycle. The leading and coincident economic indexes are essentially composite averages of several individual leading or coincident indicators. They are constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component – primarily because they smooth out some of the volatility of individual components.