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Monday, January 26, 2009

Leading Economic Indicators: Green is Good (or at Least Positive)

Barry (i.e. The Big Picture) beat me to the punch:

The surge in real money supply growth added a full percentage point to the headline number. From September til today, this has added between 0.4ppts and 1.0ppts to each month’s gain. The artificial boost to the LEIs has not translated into increased lending from the banks.
Over the least year, the increase in money supply has been the only leading economic indicator with a significant positive contribution.

Source: Conference Board