The Conference Board Leading Economic Index® (LEI) for China increased 0.9 percent in November to 308.0 (2004 = 100), following a 0.8 percent increase in October and a 1.0 percent increase in September. Three of the six components contributed positively to the index in November.
"Despite the increase in November, with bank loans as the primary driving force, the six-month growth in the China Leading Economic Index continues to moderate," said Jing Sima, senior economist at The Conference Board. "Real estate activity continues to deteriorate, and manufacturing and industrial output both showed significant weaknesses in November as well. It is highly doubtful that the central bank's recent policy easing will prevent China's economy from losing further momentum in the coming months."
The Conference Board Coincident Economic Index® (CEI) for China, which measures current economic activity, increased 0.1 percent in November to 266.4 (2004 = 100), following a 0.1 percent increase in October and a 0.4 percent increase in September. Three of the five components contributed positively to the index in November.
The Conference Board LEI for China aggregates six economic indicators that measure economic activity in China. Each of the LEI components has proven accurate on its own. Aggregating individual indicators into a composite index filters out so-called "noise" to show underlying trends more clearly.