By Jeffry Bartash, MarketWatch
The numbers: A broad measure of the economy grew again in September, but the slower pace of expansion likely signals that the U.S. lost some momentum, a new survey shows.
The leading economic index rose 0.7% last month, following increases of 1.4% in August and 2% in July, the Conference Board said Thursday.
The index had suffered historic declines this year early in the coronavirus pandemic.
Yet most of the indicators in the leading index appear to be weakening again. The LEI is a weighted gauge of 10 indicators designed to signal business-cycle peaks and valleys.
Big picture: U.S. economic growth was bound to slow after a huge surge once it reopened in May. The question is just how much.
Many economists predict sharply lower growth in the final three months of 2020 without another major financial stimulus from Washington, but so far the economy has held up better than expected despite the expiration of most federal aid in July.
What they are saying?: “The decelerating pace of improvement suggests the U.S. economy could be losing momentum heading into the final quarter of 2020,” said Ataman Ozyildirim, director of business cycles research at the board.