The numbers: The ebullient U.S. economy flexed its muscles at midsummer and is likely to expand steadily in the months ahead, according to an index that measures the nation’s economic health.
The leading economic index rose 0.6% in July after a 0.5% gain in June, the Conference Board said Friday.
What happened: Measures of economic health that look ahead, such as business orders, were particularly strong in July.
A measure of current conditions — or how the economy is doing right now — rose 0.2%.
The LEI is a weighted gauge of 10 indicators designed to signal business-cycle peaks and valleys.
What they are saying?: “The U.S. LEI increased in July, suggesting the U.S. economy will continue expanding at a solid pace for the remainder of this year,” said Ataman Ozyildirim, economist at the board.
Big picture: A range of indicators point to the U.S. economy expanding around 3% in the second half of 2018. Growth is so robust that the Federal Reserve might even raise interest rates more rapidly than Wall Street had been expecting in order to prevent inflation from rising and the economy from overheating.
Market reaction: The Dow Jones Industrial Average DJIA, +0.01% and the S&P 500 SPX, -0.12% fell slightly in Friday trades, taking a breather after a sharp rally. The stock market had surged earlier this week on news of China returning to the bargaining table with the U.S. over trade. Reports of a revamped trade deal with Mexico also added to the momentum
The 10-year Treasury yield TMUBMUSD10Y, -0.54% slipped to 2.86%.
