Leading Indicators Jump

- Leading Indicators for October rose .9% versus estimates of a .8% increase and a .8% decline in September.

BOTTOM LINE: The index of leading economic indicators in the US rose in October for the first time in four months as the labor market improved and companies in the South rebounded after three recent hurricanes, Bloomberg reported. Falling energy prices are boosting consumer sentiment and spending causing companies to replenish inventories. Money supply, the largest component of the index, added .13 percentage points to the measure. The manufacturing workweek, the second-largest component of the index, increased to 41 hours from 40.6 hours in September, adding .25 percentage points to the gauge. I expect the Leading Indicators for November to rise again on rising consumer sentiment, an improving labor market and rising stock market.