U.S. Leading Economic Index Falls Slightly More Than Expected In February

(RTTNews) - A report released by the Conference Board on Thursday showed its reading on leading U.S. economic indicators fell by slightly more than expected in the month of February.

The Conference Board said its leading economic index decreased by 0.3 percent in February after slipping by a revised 0.2 percent in January.

Economists had expected the leading economic index to dip by 0.2 percent compared to the 0.3 percent decline originally reported for the previous month.

"The US LEI fell again in February and continues to point to headwinds ahead," said Justyna Zabinska-La Monica, Senior Manager, Business Cycle Indicators, at The Conference Board.

"Consumers' expectations of future business conditions turned more pessimistic," she added. "That was the component that weighed down most heavily on the Index in February."

Zabinska-La Monica also said manufacturing new orders retreated in February after improving in January and were the second largest negative contributor to the index's monthly decline.

The Conference Board said the leading economic index fell by 1.0 percent in the six-month period ending February 2025, less than half of its rate of decline of 2.1 percent over the previous six months.

"The LEI's six-month and annual growth rates, while still negative, have remained on an upward trend since the end of 2023, suggesting that headwinds in the economy as of February may have moderated compared to last year," said Zabinska-La Monica.

She added, "However, given substantial policy uncertainty and the notable pullback in consumer sentiment and spending since the beginning of the year, we currently forecast that real GDP growth in the US will slow to around 2.0% in 2025."

The report also said the coincident economic index increased by 0.3 percent in February after inching up by 0.2 percent in January, while the lagging economic index climbed by 0.4 percent in February after rising by 0.3 percent in January.