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The U.S. economy grew again in February despite a bout of severe winter weather and it’s likely to gain speed in the months ahead as more Americans get vaccinated and nearly $2 trillion in fresh government stimulus is spent, a new survey showed.
The leading economic index rose 0.2% in February, the Conference Board said Thursday.
“The U.S. LEI continued rising in February, suggesting economic growth should continue well into this year,” said Ataman Ozyildirim, senior director of economic research at the board.
Read: Unemployment claims jump to one-month high of 770,000 as Texas applications surge
Ozyildirim said the latest figures on the economy were held down in part by bad weather that caused major disruptions in states such as Texas. Disruptions in supply chains for a variety of raw materials also acted a drag.
The small increase in the index in February, what’s more, failed to fully reflect the “acceleration of the vaccination campaign and a new round of large fiscal supports,” he said.
The board predicted the U.S. economy would expand by 5.5% in 2021. Most economists and the Federal Reserve forecast even faster growth.
U.S. stocks
DJIA,
were mixed in Thursday trades. The Dow Jones Industrial Average rose slightly, but the S&P 500
SPX,
declined.
