Bloomberg News/Landov
The U.S. economy is not growing as fast as it was last year, but it’s still expanding at a solid pace.
The numbers: A survey of economic conditions in the U.S. rose in March after hardly any gain in the first two months of the year, pointing to steady if unspectacular growth in the months ahead.
The leading economic index increased 0.4% in March, the privately run Conference Board said Thursday. The index rose just 0.1% in February and not at all in January.
What happened: The improved reading in March stemmed from stronger job creation, low layoffs and rising stock prices.
Read: The Fed is gun-shy because of a quarter-century of low inflation
Big picture: The leading indicators confirm what other snapshots of the U.S. economy show: Growth has rebounded after a weak start in 2019.
Read: Retail sales post biggest gain in 1 ½ years, point to rebounding economy
What they are saying? “Despite the relatively large gain in March, the trend in the US LEI continues to moderate, suggesting that growth in the US economy is likely to decelerate toward its long term potential of about 2% by year end,” said Ataman Ozyildirim, director of economic research at the board.
Market reaction: The Dow Jones Industrial Average DJIA, +0.03% rose but the S&P 500 SPX, -0.24% fell slightly in early Thursday trades. Stocks are near record territory again, though.
The 10-year Treasury note yield TMUBMUSD10Y, -1.60% a benchmark for pricing a swath of consumer and corporate debt, fell a few ticks to 2.57%.
