Conference Board News Release (05/22/14)

The Conference Board Leading Economic Index for the U.S. increased 0.4% in April to 101.4, following a 1.0 percent increase in March and a 0.5% increase in February. “The LEI rose for the third consecutive month, driven largely by improving housing and financial market conditions,” says Ataman Ozyildirim, economist at the Conference Board. “This latest report suggests the economy will continue to expand, and may even pick up steam through the second half of the year.”

“Despite a brutal winter which brought the economy to a halt, the overall trend in the leading economic index has remained positive,” says Ken Goldstein, economist at the Conference Board. “If consumers continue to spend, and businesses pick up the pace of investment, the industrial core of the economy will benefit and [gross domestic product] growth could move closer towards the 3.0% range.”

Bloomberg (05/22/14) Shobhana Chandra

The number of people applying for unemployment benefits in the week ended May 17 increased by 28,000 to 326,000, according to the U.S. Department of Labor. The 50 economists surveyed by Bloomberg had forecast claims of 310,000.

Wall Street Journal (05/21/14) Jon Hilsenrath

Minutes of the U.S. Federal Reserve’s April 29-30 policy meeting detail a debate about the “slack” in the labor market and whether this slack will suppress inflation and wages. Federal Reserve chairman Janet Yellen argues there is considerable slack in the labor market, citing the country’s many part-time workers who want permanent jobs. While that view is popular at the Fed, it is not universal.

“Some participants reported that labor markets were tight in their districts or that contacts indicated some sectors or occupations were experiencing shortages of workers,” the Fed minutes said.

The minutes also show officials believe the economy is improving, despite a first-quarter setback.