Economic activity in the United States rose less than expected in August, but was still consistent with the economy expanding at a moderate pace for the rest of this year, The Conference Board said on Friday. The research organisation's monthly Leading Economic Index inched up 0.2 percent, after an upwardly revised 1.1 percent increase in July.
Economists polled by Reuters predicted that the index would rise 0.4 percent after July's earlier reported 0.9 percent increase. The slower-than-expected pace of growth last month, the report said, was driven by dismal applications for housing permits and new orders for non-defence capital goods. "The leading indicators point to an economy that is continuing to gain traction, but most likely won't repeat its stellar second-quarter performance in the second half," said Ken Goldstein, economist at The Conference Board. The Coincident Economic Index, a measure of current economic activity, continued to expand, "amid improving personal income, employment and retail sales," he added. "However, industrial production registered a slight decrease for the first time in seven months."
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