US Leading Economic Index® rebounds in October

The Conference Board's Leading Economic Index® rose 0.6% m/m in October, a touch above forecast and consensus expectations for a 0.5% increase. The September reading was revised up slightly to -0.1% m/m from the initial estimate of -0.2%. The October increase was driven by stock prices (0.2pp), building permits (0.1pp) and interest rate spreads (0.2pp).

A rebound in the average manufacturing workweek also helped boost the reading (0.1pp). The strong print reverses two months of declines for the index, and points to a rebound in economic momentum.

"We expect strong service-sector activity to support consumption growth of about 3% over the next few quarters, with headline GDP growth closer to 2.5%",says Barclays.