Conference Board News Release (01/23/14)

The Conference Board’s Leading Economic Index for the U.S. edged up 0.1% to 99.4 in December, following on the heels of 1.0% and 0.1% gains in November and October, respectively. The Coincident Economic Index for the U.S. rose 0.2% to 108.1 last month, while the Lagging Economic Index climbed 0.3% to 121.2.

“Business caution and concern about unresolved federal budget battles persist, but the better-than-expected holiday season might point to sustained stronger demand and could put the U.S. on a faster growth track for 2014,” says Ken Goldstein, an economist at the Conference Board.

CFO.com (01/22/14) David M. Katz

Corporate America’s level of cash flow suggests that the U.S. economy is still stuck in a recession. Revenue has fallen a median of more than 9% over the 12-month period ending in September, according to a recent quarterly review of cash flow trends by the Georgia Tech Financial Analysis Lab. The decline in median sales, along with decreases in areas such as capital spending and outlays for inventory “are similar to developments observed during the recession,” the report says. Revenue growth must expand if the economy is to improve and companies are to increase hiring, but they still are reluctant to spend, notes Charles Mulford, director of the lab and an accounting professor at Georgia Tech.

USA Today (01/22/14) Tim Mullaney

According to a report from the U.S. Conference of Mayors, economic gains will be shared more broadly among the nation’s cities in 2014 than in 2013. All but seven of the 363 U.S. metropolitan areas will experience economic growth this year; last year 97 areas saw economic contraction.

Some 340 metropolitan areas will see at least 1% gains, up from 183 last year. Of the 340 growing economies, 69 will grow by 3% or more. Cities that were heavily affected by the decline of manufacturing or the housing bust are expected to recover.