US growth gauge shows improved financial sentiment

NEW YORK, May 16 (Reuters) - A gauge of future U.S. economic growth slipped in the latest week, pulled down by higher jobless claims and weaker housing, but its annualized growth rate reflects improvement in financial market sentiment, a research group said on Friday.

The Economic Cycle Research Institute, a New York-based independent forecasting group, said its Weekly Leading Index slipped to 133.5 in the week to May 9 from 133.6 in the prior period, revised from 133.5.

The fall was mostly offset by lower interest rates and higher stock prices, said Lakshman Achuthan, managing director at ECRI.

The index's annualized growth rate improved to negative 7.2 percent from minus 8.0 percent, its highest since the week to March 28, according to ECRI data.

"While the WLI slipped slightly, its growth rate has come off its lows in recent weeks, reflecting improved financial market sentiment," said Achuthan. "Still, the WLI is not yet pointing to a business cycle recovery." (Reporting by Rodrigo Campos; Editing by James Dalgleish)