June 2017: ECRI's WLI Growth Index Rate Continues To Slow
ECRI's WLI Growth Index which forecasts economic growth six months forward remains in positive territory for over one year - after spending the previous 35 consecutive weeks in negative territory. This is compared to RecessionAlerts similar weekly leading index.
Analyst Opinion of the trends of the weekly leading indices
Both ECRI's and RecessionAlerts indicies are indicating moderate growth six months from today. Both indices are in a growth cycle but show the rate of growth trend slowing. They are indicating conditions 6 months from today should be somewhat better than today.
Current ECRI WLI Level and Growth Index:
Here is this week's update on ECRI's Weekly Leading Index (note - a positive number indicates growth):
U.S. WLI Edges Down
The U.S. Weekly Leading Index (WLI) edges down to 144.0 from 144.5. The growth rate decreases to 3.7% from 4.1%.
To put the economy in perspective please see links below:
- ECRI's presentation 'Turning Points: The Long and Short of It' at the 2017 Strategic Investment Conference.
- read ECRI's "International Inflation Cycles Sync Up".
For a closer look at recent moves in the U.S. Weekly Leading Index, see the chart below:
Comparison to RecessionAlert Weekly Indicator
RecessionAlert also produces a weekly forward indicator using different pulse points that ECRI's WLI. Here is a graph from dshort.com which compares the two indices. Both indices are showing nearly the same rate of growth.
Coincident Index:
ECRI produces a monthly coincident index - a positive number shows economic expansion. The April index value (issued in May) shows the rate of economic growth improved.
z ecri_coin.png
ECRI produces a monthly inflation index - a positive number shows increasing inflation pressure. Inflation pressures are receding
U.S. Future Inflation Gauge:
z ecri_infl.PNG
ECRI produces a monthly Lagging index. The March economy's rate of growth (released in April) showed the rate of growth unchanged..
U.S. Lagging Index:
z ecri_lag.PNG
source: ECRI
Disclosure: None.