Leading economic index hits two-year high

WASHINGTON (Reuters) - A gauge of the U.S. economy's prospects rose for a sixth-straight month in September to a two-year high, a private research group said on Thursday, suggesting the U.S. recovery was building steam.

The Conference Board said its index of leading economic indicators rose 1 percent to 103.5, the highest level since October 2007. It said the sixth month growth rate for the index was at its highest pace since 1983.

"These numbers strongly suggest that a recovery is developing," Conference Board economist Ken Goldstein said in a statement. "However, the intensity of that recovery will depend on how much, and how soon, demand picks up."

(Reporting by Tim Ahmann; Editing by Kenneth Barry)