• Home
• /
• Markets

US leading economic indicator increases 0.8% in September

A gauge of future US economic activity rebounded in September, pointing to solid growth for the remainder of the year.

The Conference Board said on Thursday that its Leading Economic Index increased 0.8 per cent last month after being flat in August.

Economists polled by Reuters had expected the index to rise 0.6 per cent after August’s previously reported 0.2 per cent gain.

Firm labour market

The number of Americans filing new claims for unemployment benefits rose last week, but the underlying trend firmly pointed to strengthening labour market conditions. Initial claims for state unemployment benefits increased 17,000 to a seasonally adjusted 283,000 for the week ended on October 18, the Labour Department said on Thursday.

That followed three straight weeks of declines, which had pushed claims to levels last seen in 2000. Last week’s increase was in line with economists’ expectations.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell to 281,000, the lowest level since May 2000, from a revised 284,000 in the previous week.

Mortgage rates fall

Average US mortgage rates continued to slide this week, raising prospects of a wave of consumers refinancing their loans. The 30-year mortgage fell further below four per cent. Mortgage company Freddie Mac says the nationwide average for a 30-year loan declined to 3.92 per cent from 3.97 per cent last week.

The average rate is at its lowest level since June 2013. It was 4.53 per cent in January. The average for a 15-year mortgage, a popular choice for people who are refinancing, fell to 3.08 per cent from 3.18 per cent.