ECRI’s WLI Growth Index which forecasts economic growth six months forward – slid further into negative territory. This index had spent 28 weeks in negative territory then 15 weeks in positive territory – and now is in its third week in negative territory. ECRI also released their inflation index this week.
Current ECRI WLI Level and Growth Index:
Here is this week’s update on ECRI’s Weekly Leading Index (note – a positive number indicates growth):
U.S. Weekly Leading Index Decreases
The U.S. Weekly Leading Index decreases to 130.5 from 131.5. The growth rate edges down to -1.7% from -0.9%.
To put the state of the economy in perspective click here to watch Lakshman Achuthan in an interview on Bloomberg.
For a closer look at recent moves in the U.S. Weekly Leading Index, please see the chart below:
ECRI produces a monthly issued Coincident index. The July update (reported in August) shows the rate of economic growth is unchanged.
U.S. Coincident Index:
z ecri_coin.png
ECRI produces a monthly inflation index – a positive number shows increasing inflation pressure.
U.S. Future Inflation Gauge:
z ecri_infl.PNG
ECRI Inflation Gauge Rises
U.S. inflationary pressures were up in August, as the U.S. future inflation gauge grew to 101.9 from an unrevised July 101.2 reading, according to data released Friday morning by the Economic Cycle Research Institute.
“While rising further above March’s 16-month low, the USFIG remains well below its earlier highs,” ECRI Chief Operations Officer Lakshman Achuthan said in a release. “Thus, underlying inflation pressures are still fairly subdued.”
ECRI produces a monthly Lagging index. The July’s economy’s rate of growth (released in August) showed a slightly slower economy.
U.S. Lagging Index:
z ecri_lag.PNG
source: ECRI
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