Leading Indicators on the Rise

- Leading Indicators for December rose .3% versus estimates of a .2% increase and a downwardly revised unch. reading in November.

BOTTOM LINE: An index of leading US economic indicators rose last month for the first time since September, as job growth and rising stock prices pointed to a strong start for 2007, Bloomberg said. Jobless claims averaged 316,500 in December, down from 328,600 a month earlier. As well, the S&P 500 averaged 1,416 in December versus 1,388 in November. Housing related gauges also helped boost the index. I continue to believe the US economy is accelerating modestly from slightly below average rates to more average rates of growth as housing and auto production cutbacks subtract less, the job market remains healthy, energy prices fall further, long-term rates remain low, inflation decelerates further, consumer spending strengthens and confidence in the sustainability of the current expansion rises.