The Conference Board Leading Economic Index® (LEI) for China increased 0.7 percent in May. The index stands at 290.2 (2004 = 100), following 1.0 percent increases in both April and March. Four of the six components contributed positively to the index in May.
"While the Leading Economic Index for China increased in May, its rate of increase has slowed considerably in recent months.
The LEI, and its underlying components, suggest continued weaknesses in China's real economy in the coming months," says Jing Sima, Economist at The Conference Board. "April's sharp improvement in the real estate sector was short-lived and consumers remain in a pessimistic mood. Moreover, the Coincident Economic Index indicates the rate of current economic activity is substantially lower than last year."
The Conference Board Coincident Economic Index® (CEI) for China, which measures current economic activity, increased 0.7 percent in May to 259.7 (2004 = 100), following a 0.7 percent increase in April and a 1.5 percent increase in March. All five components contributed positively to the index in May.
The Conference Board LEI for China aggregates six economic indicators that measure economic activity in China. Each of the LEI components has proven accurate on its own. Aggregating individual indicators into a composite index filters out so-called "noise" to show underlying trends more clearly.
