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The numbers: The U.S. economy expanded again in November, according to a survey of leading indicators, but growth fell to the slowest pace in five months amid a record surge in coronavirus cases.
The leading economic index increased 0.6% last month, the Conference Board said Friday. That was a bit better than Wall Street had forecast.
The index had risen 0.8% in October and 0.7%.
What happened: The leading index was propelled higher by a decline in jobless claims, increased manufacturing orders and rising stock prices.
Yet jobless claims have surged again in December and other key segments of the economy have weakened, which could lead to a decline in the leading index in December for the first time since May.
The LEI is a weighted gauge of 10 indicators designed to signal business-cycle peaks and valleys.
Big picture: The U.S. has suffered another blow from the record surge in coronavirus cases. Many cities and states have reimposed business restrictions and people are going out less to avoid catching the virus, especially with vaccines being rolled out.
The economy is likely to rebound in the spring as more Americans get vaccinated, but the next month or two could be rough.
What they are saying? “The U.S. LEI continued rising in November, but its pace of improvement has been decelerating in recent months, suggesting a significant moderation in growth as the U.S. economy heads into 2021,” said Ataman Ozyildirim, senior director of economic research at board.
Market reaction: The Dow Jones Industrial Average DJIA, -0.46% and S&P 500 SPX, -0.41% fell in Friday trades.
