Measure of future US economic activity rises in October for 2nd straight month

By Christopher S. Rugaber | The Associated Press
November 21 2012 08:28 AM

CP20886578 — In this Friday, Nov. 16, 2012, photo, employees work at a shipping area of Generac Power Systems, Inc., one of the largest makers of residential generators in the U.S., in Whitewater, Wis. A measure of the U.S. economy released, Wednesday, Oct. 21, 2012, intended to signal future activity rose only slightly last month, suggesting growth could stay weak. Many economists expect growth to slow in the current October-December quarter to an annual rate below 2 percent. Part of the slowdown is likely to occur because of Superstorm Sandy, which disrupted businesses and cut off power throughout the Northeast. (AP Photo/Nam Y. Huh)

WASHINGTON – A measure of the U.S. economy intended to signal future activity rose only slightly last month, suggesting growth could stay weak.

The Conference Board says its index of leading indicators increased 0.2 per cent in October after a 0.5 per cent gain in September. The index is intended to anticipate economic conditions three to six months out.

The strength in October came from lower interest rates, a drop in applications for unemployment benefits, and an increase in demand for large manufactured goods.

Applications for unemployment aid have spiked this month because Superstorm Sandy closed businesses and cut off power to 8 million homes in 10 states. People can claim unemployment benefits if their workplaces are forced to close and they aren’t paid.

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