A private research group has forecast that the US economy will grow modestly over the next few months after a late-spring slump.
The Conference Board said that its index of leading economic indicators rose 0.8% last month. That was a rebound from April, when the index dropped 0.4% - the first decline since June 2010. A string of declines would indicate that a recession was coming.
The May report showed marked improvement in most areas measured, suggesting that US economy will regain some of the momentum it lost this spring, when high petrol prices cut into consumer spending and businesses pulled back on hiring.
Eight of the 10 measures the Conference Board uses to calculate the index increased. In April, only four showed improvement.
But, Conference Board economist Ken Goldstein cautioned that economic growth would be 'choppy' in the coming months. The housing market remains weak and food and petrol prices remain high despite some easing in recent weeks.
The Conference Board uses data that have mostly already been released about property, manufacturing, employment, consumer confidence and financial markets in calculating the leading indicator index. The Conference Board also includes its own estimates about manufacturers' new orders and the country's money supply.
Much of the economic figures over the past month have disappointed investors, leading many economists to lower their growth expectations for this year.
