Leading Economic Index Posts Another Gain

In a report issued today, the Wells Fargo Economics Group reports that the Leading Economic Index increased for the sixth straight month in September in the latest affirmation that the economy has shifted gears from recession to slow recovery.

The LEI has posted gains for six straight months and suggests the recent recovery will likely continue.

Along with low short-term interest rates, a key driver of the gain in the LEI is a recovery in consumer expectations. So far, expectations are recovering faster than consumers’ assessment of the present situation. Recovery in consumer spending will require improvement in the present situation as well.