Getty Images
The numbers: The U.S. grew moderately in May but it’s unlikely to get much stronger in the summer months, according to an index that attempts to forecast the nation’s economic health.
The leading economic index rose 0.2% in May, the Conference Board said Thursday. Although it’s a decent gain, the index had climbed twice as fast in April and March.
A measure of current conditions — or how the economy is doing right now — also rose 0.2%.
A “ lagging” index that looks back at the past several months climbed 0.5%.
What happened: Most of the areas covered by the leading index rose in May, but at a slower pace than in prior months. The LEI is a weighted gauge of 10 indicators designed to signal business-cycle peaks and valleys.
Big picture: The U.S. is forecast to expand at a robust 3.7% annual pace in the second quarter, according to economists polled by MarketWatch. The economy is doing so well the Federal Reserve believes it needs to raise interest rates to make sure the good times don’t get out of hand and stoke unwanted inflation.
Market reaction: The Dow Jones Industrial Average and the S&P 500 fell in Thursday trades. The 10-year Treasury yield slipped a few basis points to 2.91%.