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Indicators post rise
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August 3, 1999: 10:41 a.m. ET
Economic index shows signs of continued strength, consumer demand
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NEW YORK (CNNfn) - The economy appears poised for continued strength ahead, a key report showed Tuesday, amid signs that consumer demand will be strong in the coming months.
The nation's leading economic indicators rose 0.3 percent in June, the same rate as in May, but faster than the 0.2 percent rate economists had expected, the Conference Board reported. That was the eighth increase in the index over the last nine months.
Powering the gain in the index -- a key indicator of what the economic pipeline looks like -- was a rise in demand for consumer goods. Seven of the ten indicators that make up the index rose in June.
The report's author said there are few signs the hearty economy is losing steam, but the Federal Reserve could inject volatility into the economy if it decides to raise interest rates later this month.
"The expansion is firmly on track," said Michael Boldin, director of business cycle research at the Conference Board, in a statement. "But because of concerns about if and when the Fed will tighten to fight inflation, some volatility can be expected in the second half of 1999."
The Fed's policy-making committee next meets on Aug. 24.
The report had little effect on the weary bond market. The 30-year Treasury issue was down 6/32 in price for a yield of 6.13 percent.
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