ECRI’S LEADING INDICATORS REACH 17 MONTH HIGH
It’s smooth sailing for the recovery into 2010. At least according to the ECRI and the latest data from their leading indicators report. the ECRI’s weekly leading indicator surged to 130.7 resulting in a year over year growth rate of 24.7%. This was the third straight week of gains and a 17 month high.
“With the WLI rising to a 17-month high as its growth rate reaccelerates, a resilient economic recovery is poised to persist well into the New Year,” said Lakshman Achuthan, Managing Director at ECRI.
Of course, the ECRI views this continued strength as a sign of future growth while Albert Edwards of SocGen views it as a contrarian sign of things to come. The last time the reading was this high was in the summer of 2008 – just before the market began to unravel.






Ladies and Gentlemen, Introducing the 2009 version of the Harvard Economic Society! Take a bow ECRI
The main problem I see with the ecri indicators is the heavy scew towards stock returns and M2. Do stocks and M2 really tell you what’s going on in the economy?
http://globaleconomicanalysis.blogspot.com/2009/10/can-we-really-trust-leading-economic.html
Aren’t the market and the economy two different things? The ECRI is talking economy while Edwards is talking markets, no?