Economic Indicators Rise

The U.S. economy is set to grow well into the second half of the year, according to reports released Tuesday, while the government provided fresh evidence in a separate report that rising interest rates have done little to dissuade new-home buyers.

Analysts said the figures pointed to further interest rate increases by inflation fighters at the Federal Reserve.

The Index of Leading Economic Indicators, which is designed to predict economic activity three to six months ahead, rose 0.1 percent in March, indicating continued growth, but at a lower pace than in the past six months, the Conference Board said.

A separate forecast from the National Association of Purchasing Management said the manufacturing industry will continue to prosper through the year, and companies are looking for a 5.9 percent increase in revenues compared with last year.

Meanwhile, the Commerce Department reported Tuesday that sales of new homes jumped 4.5 percent in March to their highest level in more than a year, despite a leap in interest rates for mortgages. Analysts had expected a decline of 2 percent.