U.S. consumption likely to rise in coming quarters

U.S. Conference Board's Leading Economic Index increased 0.6% m/m in October, which was -0.1% m/ in September. The index stood above market's expectation. 

The October increase was mainly driven by stock prices, building permits, and interest rate spreads   The stock prices increased by 0.2pp followed by building permits 0.1pp and interest rate spreads 0.2pp. A rebound in the average manufacturing workweek also contributed the figure.

"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%", argues Barclays.