Economy gauge up 0.5% in December

WASHINGTON — An index designed to predict the future health of the U.S. economy posted a fourth straight solid gain in December.

The Conference Board said Friday that its index of leading indicators increased 0.5 percent in December after a revised gain of 0.4 percent in November. The index also posted solid gains in September and October after a flat reading in August.

The December increase reflected widespread strength with eight of the 10 forward-pointing indicators that make up the index showing strength.

The largest positive contributors to the index were the spread in interest rates, a fall in weekly unemployment claims, consumer expectations and new orders to manufacturers for capital goods excluding aircraft.

The only negative contributor to the index in December was a drop in building permits. Average weekly manufacturing hours held steady, meaning it did not add or subtract from the overall index reading.