Leading Economic Indicators Offer More Warning Signs

Markos Kaminis (Wall St. Greek) submits: The Conference Board's Leading Economic Indicators Index slipped 0.2% in June, offering yet another critical sign that the economy faces real risk of double-dip recession. The 0.2% drop compared against a revised 0.5% increase in May's measure. Economists were on target with their estimations, and so the news did not shake the market on Thursday. Rather, more positive testimony from Chairman Bernanke helped restore shares that were drained on Wednesday's commentary from the same.Two out of the last three months produced declines in the LEI, and the positive drivers of the index continue to leave us less than enthused. They remain interest rate spreads, which are mostly due to prospective efforts of the Fed in its low-rate policy, and due to the dearth of demand for financial securities and borrowing instruments, especially in housing where mortgage rates are at historic lows.Complete Story »