The leading economic index (LEI) for the UK experienced a decline of 0.3 per cent in May 2024, bringing it to 75.4 (2016=100), according to The Conference Board (TCB), a research group organisation. This follows a 0.1 per cent decrease in April.

Over the six-month period from November 2023 to May 2024, the LEI contracted by 0.7 per cent. However, this marks an improvement from the 4.0 per cent contraction observed in the previous six-month period.

Conversely, the coincident economic index (CEI) for the UK saw an increase of 0.3 per cent in May 2024, reaching 104.5 (2016=100). This rise more than offsets the 0.1 per cent decline recorded in April. Despite this monthly increase, the CEI remained flat over the six months from November 2023 to May 2024, compared to a 0.3 per cent growth in the preceding six-month period, as per TCB.

“While components of the LEI were mixed, a large negative contribution from unemployment claims drove the decline. As in previous months, the negative yield spread and depressed consumer’s assessment of current economic conditions also weighed on the index. The LEI’s six-month growth rate is still negative, but it has improved considerably since the beginning of the year, suggesting that headwinds to economic activity have lessened. The Conference Board currently expects that after a strong reading in Q1 GDP growth, the UK economy will continue to expand in remainder of 2024, although at a more modest pace, and grow by 0.8 per cent overall this year,” said Allen Li, associate economist at TCB.

Fibre2Fashion News Desk (DP)