Improving economy could lead to increased borrowing
Jul 29, 2013 Quinn Thomas
Although the economy has slowed a bit, it is still expected to grow in the second half of the year, which could help boost consumer activity. For instance, short term lending demand may pick up if Americans begin to spend more money.
The Conference Board Leading Economic Index for the United States was unchanged in June, but it still showed a positive outlook for the next six months.
"The U.S. LEI was flat in June," said Ataman Ozyildirim, economist at The Conference Board. "Declines in building permits, new orders and stock prices were offset by gains in consumer expectations, initial claims for unemployment insurance and other financial indicators. However, the LEI's six-month growth rate remains positive, suggesting the economy will continue expanding through the end of the year."
Another positive indicator for the economy is the fact that economists surveyed by the National Association for Business Economics had a brighter outlook on future growth. Almost 75 percent said economic growth would hit 2.1 percent in the next 12 months, which would be an improvement, the Boston Globe noted.