CB Leading Economic Index Fell 0.1% In December

Key Insights

• CB Leading Economic Index declined by 0.1% month-over-month in December. 
• High interest rates put pressure on the index. 
• SP500 tests new highs as the strong rally continues. 

On January 22, The Conference Board released CB Leading Economic Index report for December. The report indicated that CB Leading Economic Index (LEI) declined by 0.1% on a month-over-month basis, compared to analyst consensus of -0.3%. The index declined by 2.9% over the six-month period between June and December 2023.

The Conference Board commented: “Despite the overall decline, six out of ten leading indicators made positive contributions to the LEI in December. Nonetheless, these improvements were more than offset by weak conditions in manufacturing, the high interest-rate environment, and low consumer confidence.”

Interestingly, The Conference Board mentions low consumer confidence while the recent Michigan Consumer Sentiment report showed that Consumer Sentiment jumped to its highest level since July 2021.

U.S. Dollar Index is mostly flat after the release of CB Leading Economic Index report. Treasury yields are moving lower, which is bearish for the American currency. From a big picture point of view, forex traders are waiting for significant catalysts.

Gold pulls back despite falling Treasury yields. Currently, gold is trying to settle back below the $2025 level. Demand for safe-haven assets is declining, which is bearish for gold markets.

SP500 tests new highs as the strong rally continues. The better-than-expected report may provide additional support to SP500.

For a look at all of today’s economic events, check out our economic calendar.