NEW YORK — A gauge of future economic activity inched up in July, a research group said Monday, indicating economic growth will pick up slightly in coming months despite turmoil in the housing market.
The Conference Board's index of leading economic indicators rose 0.4 percent in July, as analysts were expecting. The index fell 0.3 percent in June, after rising 0.2 percent in May.
The report is designed for forecast economic activity over the next three to six months.
The Conference Board report tracks 10 economic indicators. The advancing components in July were consumer expectations, vendor performance, unemployment claims, real money supply, stock prices and manufacturers' orders for consumer goods and materials.
The negative contributors are housing permits, manufacturers' new orders for nondefense capital goods and interest rate spread. Weekly manufacturing hours held steady.
CHICAGO FED ACTIVITY INDEX
Meanwhile, U.S. economic growth trended below average in July amid weakness in employment, consumption and housing indicators, according to a report released Monday by the Federal Reserve Bank of Chicago.
The Chicago Fed National Activity Index swung to -0.10 in July, from +0.06 in June. The June figure was revised lower from a previously reported +0.11, the Chicago Fed said in a press release.
The three-month moving average for the index, which the Chicago Fed says provides a more consistent picture of national economic growth given the volatility in monthly readings, was -0.12 in July, unchanged from June.
The three-month average suggests national economic growth was below its historical trend, and there should be little inflationary pressure over the coming year, the Chicago Fed said.