NEW YORK, Sept 4 (Reuters) - A weekly measure of future U.S. economic growth rose in the latest week, while its yearly growth rate surged to a 38-year high that suggests the recovery is on track.
The Economic Cycle Research Institute, a New York-based independent forecasting group, said its Weekly Leading Index rose to 124.7 in the week to August 28 from a downwardly revised 124.3 in the previous week, originally reported as 124.4.
The index’s annualized growth rate rose to 20.8 percent from 19.6 percent a week earlier. The latest reading was the index’s highest yearly growth rate since the week to May 21, 1971, when it stood at 21.3 percent.
“With WLI growth rising to a new 38-year high, U.S. economic growth is poised for a stronger snap-back than most expect,” said ECRI Managing Director Lakshman Achuthan.
The index was pulled higher this week by stronger housing activity, he said.
ECRI has predicted that the longest U.S. recession in more than a half-century will end before the summer is out.
Last week, Achuthan said a double-dip recession in the fourth quarter is “out of the question.”
Reporting by Ciara Linnane; Editing by Chizu Nomiyama
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