ECRI’s WLI Growth Index continues its decline – remains in positive territory – but is now forecasting almost no growth within the next six months. ECRI released their inflation index also this week.
Current ECRI WLI Level and Growth Index
Please read The U.S. Business Cycle in the Context of the Yo-Yo Years which is an update on ECRI’s recession call.
Here is this weeks update on ECRI’s Weekly Leading Index (note – a positive number indicates growth):
Weekly Leading Index Growth Declines
Growth in a weekly leading index designed to forecast U.S. economic activity continues to show expansion.
According to the Economic Cycle Research Institute, its weekly leading index declined marginally. The growth rate declined from 2.3% (originally published as 2.3%) to 1.8% – and, the level of the index improved from 134.8 (originally released last week as 134.8) to 134.9.
ECRI produces a monthly issued Coincident index. The August update for July shows the rate of economic growth again declining marginally month-to-month – and is now showing the rate of growth trend line within a narrow channel since 2013. The current values:
U.S. Coincident Index
ECRI produces a monthly inflation index – a positive number shows increasing inflation pressure.
U.S. Future Inflation Gauge
Future Inflation Gauge Remains at 71-Month High
U.S. inflationary pressures were flat in August, as the U.S. future inflation gauge remained 106.9 from the unrevised July 106.9 reading, according to data released Friday morning by the Economic Cycle Research Institute.
“With the USFIG almost at a six-year high, underlying inflation pressures have clearly risen since last fall,” ECRI Chief Operations Officer Lakshman Achuthan said in a release.
ECRI produces a monthly Lagging index. The July’s economy’s rate of growth (released in August) declined significantly this month.
U.S. Lagging Index