Leading Indicators Forecast Decelerating Growth

- Leading Indicators for February fell .2% versus estimates of a .3% decline and a downwardly revised .5% gain in January.

BOTTOM LINE: An index of US leading indicators fell in February after four months of gains, signaling slower economic growth in the second half of the year. The US economy is projected to grow by a very strong 4.7% this quarter, the fastest pace in two years, boosted by increasing corporate spending and still healthy consumer spending. I continue to expect US growth to peak this quarter and decelerate back to average levels of around 3% through year-end. This should provide a very good backdrop for investing in US stocks.