In September, the U.S. Leading Economic Index (LEI) improved 0.7%, to 107.2 points, reports the Economic Outlook Update (EOU) published by Business Valuation Resources (BVR). The report noted that, despite the rise, downside risks to the economic recovery may be increasing amid rising new cases of COVID-19 and continued labor market weakness. This suggests that the U.S. economy could be losing momentum heading into the final months of 2020.

The LEI is a leading American economic indicator intended to forecast future activity. The LEI is calculated by the Conference Board, a nongovernmental organization, from the values of 10 key variables, such as manufacturers’ new orders (consumer goods and materials), building permits (new private housing units), interest rate spread (10-year Treasury bonds less federal funds), average consumer expectations for business conditions, and other variables.

The 52-page August 2020 Economic Outlook Update contains expansive research from leading authoritative resources, which you can use in your valuation reports as long as you give proper attribution. To learn more, visit bvresources.com/eou.