NEW YORK — A gauge of future economic activity rose in November, at the fastest pace since March, suggesting the economy will strengthen early next year.
The Conference Board said its index of leading economic indicators rose 1.1 percent last month — the biggest increase since a 1.4 percent gain in March.
The leading indicators rose 0.4 percent in October and 0.6 percent in November. The index has risen for five straight months. Deutsche Bank economist Joseph LaVorgna said the index’s recent leap suggested that economic growth picked up significantly, to above 3 percent, in the October-December quarter and would continue to accelerate in the first three months of next year. Faster economic growth would help lower the 9.8 percent unemployment rate.
The economy grew at a 2.5 percent pace from July through September.
The leading indicators had stalled this summer as U.S. economic growth slowed. A revival in the stock market helped the index accelerate this fall. Plans by the Federal Reserve and U.S. government to try to jump-start the economy have buoyed shares — the Dow Jones industrial average closed at its highest point since September 2008 on Thursday.
