Washington • A gauge designed to predict the economy's future health increased for a fourth month in May, providing further evidence that the economy is gaining strength after a harsh winter caused activity to go into reverse.
The Conference Board said Thursday that its index of leading indicators increased 0.5 percent last month, an improvement from a revised 0.3 percent gain in April. The strength was broadly based with positive contributions from all the financial and labor components of the index.
"Recent data suggest the economy is finally moving up from a 2 percent growth trend to a more robust expansion," said Conference Board economist Ken Goldstein. "Going forward, the biggest challenge is to sustain the rise in income growth which will drive consumption."