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Index of US economy dips but growth up-report


Friday January 30, 10:31 am ET

NEW YORK, Jan 30 (Reuters) - A drop in mortgage applications pulled down a leading index of the U.S. economy, but the growth improved on higher commodity prices and healthystock market gains, a report showed on Friday.

The Economic Cycle Research Institute, an independent forecasting group, said its weekly leading index (WLI) fell to 132.7 in the week ended Jan. 23 compared with the preceding week's upwardly revised reading of 133.3.

The annualized growth rate, a four-week moving average that evens out weekly fluctuations, increased to 10.8 percent from an upwardly revised 10.1 percent.

"It's clear evidence that the economy will continue to experience above trend growth even in light of this morning's GDP number," said ECRI managing director Lakshman Achuthan.

 

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