Economy - Friday

U.S. leading indicator edges up

Future U.S. growth, measured by the ECRI's Weekly Leading Index, rose to 143.0 in the week ended June 29 vs. 142.8 the prior week. But its annualized growth rate, based on a 4-week moving average, fell to a 7-week low of 6.3%, down from 6.5% the previous week.

ECRI's U.S. Future Inflation Gauge fell in June to a 2-year low of 117.8 from 118.5 in May, indicating that inflation pressures are easing. G-7 growth outlook brightens

The Organization for Economic Cooperation and Development's composite leading indicator for G-7 countries rose to 106.0 in May from 105.5 in April amid steady growth in China, India and Brazil. The less volatile 6-month indicator rose to 1.9 from 1.2 in April. All 7 major economies except Italy showed growth. Japan's 6-month rate of change rose to 0.6 from -0.7 in April. The figure for the 30-nation OECD rose to 110.1 from April's 109.6.

German factory orders rose 3.2% in May amid strong overseas demand, gov't data showed. British industrial output rose 0.6% in May, the biggest monthly gain since Nov., on gains in ship and oil output, the gov't said.

EU fears impact of strong euro

The euro's recent climb to record highs vs. the yen and to a near-record vs. the dollar could hurt Europe's economy, said European Union Economic and Monetary Affairs chief Joaquin Almunia. But, he said, "up to now the development of the euro is compatible with recovery" in the euro zone. He said "price stability is our central scenario," predicting 2% inflation next year.

Canada posts healthy job growth

Employers added 34,800 jobs in June and the jobless rate held at a 33-year low of 6.1%. Rising service sector employment offset losses in manufacturing, the gov't said. But monthly hiring averaged just 13,000 in Q2 as the economy slowed. That's well below Q1's average of 52,700 jobs per month. Still, the Bank of Canada is expected to raise interest rates Tue. from the current 4.25%, as inflation hovers above its 2% target.

COMING UP MONDAY

Consumer credit for May, 3 p.m. EDT (forecast: up $6 bil).