The index of leading U.S. economic indicators unexpectedly increased in December.
The Conference Board’s gauge rose 0.3 percent, the first gain in six months, after a 0.4 percent drop in November, the group said. The index points to the direction of the economy over the next three to six months.
The gain was driven by a jump in the money supply, which reflects the Federal Reserve’s campaign to unfreeze credit, including last month’s reduction in the benchmark interest rate to the lowest level on record.
“The Fed has successfully prevented an implosion of the money supply. The economy is a different story,” Ian Shepherdson, chief U.S. economist at High Frequency Economics Ltd. in Valhalla, N.Y., said in a note to clients.
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