(Bloomberg) -- The index of U.S. leading indicators rose more than forecast in November, a sign the economic expansion will gain traction in the months to come.
The Conference Board’s index, a gauge of the outlook for the next three to six months, increased 0.8% last month after rising 0.1% in October, the New York-based group said today. The median forecast of economists surveyed by Bloomberg called for an advance of 0.7%.
Rising stock prices, a firming housing market and gains in the labor market are helping to boost spending among households, whose balance sheets have improved over the last four years. Fading fiscal drag from federal spending cuts in 2014 will also lift growth, supporting demand as the recovery accelerates.
“The economy is generating more momentum, that’s the bottom line,” Ward McCarthy, chief financial economist at Jefferies LLC, said in an interview before the report. “ We have steadily seen the economy grow faster over the course of 2013, and that suggests that the economic expansion is getting more strength.”
Estimates from 49 economists in the Bloomberg poll ranged from gains of 0.2% to 0.9%.