Economic Gauge Remains Unchanged

A barometer of the economy remained unchanged in June, suggesting it hasn’t overheated to inflation-triggering levels, but Wall Street remained unconvinced the danger was over.

The Index of Leading Economic Indicators held steady at May’s level of 103.8, the Conference Board reported Tuesday. Analysts had forecast a 0.4 percent increase.

The unchanged performance in June followed an increase in May of 0.3 percent and a 0.1 percent decline in April.

The leading index is designed to forecast economic activity six to nine months in advance. Thus, its June performance is in line with a widespread belief that the economy’s growth has cooled off.

Overall, the economy continues to expand at a modest pace, said Joe Battipaglia, market strategist at Gruntal & Co. Overall growth remains below alarming levels, he said.

“It’s not a runaway expansion at this point,’ Battipaglia said.