ECRI's WLI data shows some stabilization in September

Posted on our Facebook Forum by Lakshman Achuthan September 21, 2007.

Latest WLI data shows some stabilization in first half of the month.

NEW YORK, Sept 21 (Reuters) - A weekly gauge of future U.S. economic growth slipped in the latest week weighed down by slower housing activity and softer industrial commodity prices, while its annualized growth ticked up, a research group said on Friday.

The Economic Cycle Research Institute, a New York-based independent forecasting group, said its Weekly Leading Index (WLI) slipped to 140.6 in the week ended Sept. 14 from an upwardly revised 140.8 in the prior week. It was originally reported at 140.6. The slight downturn was partly offset by lower jobless claims and interest rates.

ECRI data showed the annualized growth rate in the index edged up to 0.4 percent from 0.3 percent in the prior week, upwardly revised from 0.1 percent."

Following a plunge in August, WLI growth stabilized in early September, even before this week's rate cuts. Thus, a slowdown in economic growth is clearly in sight, but not a recession," said Lakshman Achuthan, managing director at ECRI.

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Lakshman Achuthan is the managing director of the Economic Cycle Research Institute, (ECRI), an independent organization focused on business cycle research and forecasting in the tradition established by Geoffrey H. Moore. Lakshman is the managing editor of ECRI's publications, a member of Time magazine's board of economists, the Levy Institute's Board of Governors and the New York City Economic Advisory Panel. He is co-author of "Beating the Business Cycle: How to Predict and Profit from Turning Points in the Economy" published by Doubleday.