U.S. May leading indicators point to strong growth

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WASHINGTON (CBS.MW) -- The U.S. index of leading economic indicators signals that the U.S. economy will stay on a high growth path through the summer months, the Conference Board said Thursday.

The index of leading economic indicators rose 0.5 percent in May. This is the third straight monthly increase. Read full Conference Board report.

The rise in the index in May was above expectations. According to a survey conducted by CBS Marketwatch, economists had forecast the leading index to rise 0.3 percent. See Economic Calendar.

"The data reflect a robust economic environment this spring and point to more of the same this summer," said Ken Goldstein, an economist at the Conference Board.

The current 3.5 to 4.5 percent growth rate in the leading index is signaling the continuation of a GDP growth rate around a 5.0 to 5.5 percent annual rate.

Eight of the 10 indicators increased in May, led by factory hours and money supply.

Goldstein said that despite concerns about rising prices, "investment, inventory and even export growth continue to improve."

"This confluence of economic strengths is a recipe for continued job gains, and possibly a little more inflation," he said.

The coincident index rose 0.3 percent, while the lagging index rose 0.1 percent.

In separate reports released earlier Thursday, the government reported a 0.8 percent spike in the Producer Price Index in May (see full report), and a 15,000 drop in weekly jobless claims (see full report).