US growth fairly optimistic: ECRI

The New York-based Economic Cycle Research Institute (ECRI) sees little worry on US economic growth.

Lakshman Achuthan, managing director, Economic Cycle Research Institute, told DNA Money on Friday: “WLI growth has improved significantly of late, reaching a three-year high in early May. Thus, the US economic growth outlook is fairly optimistic.”

ECRI specialises in spotting global economic cycles well before others do.

Its Weekly Leading Index is an established barometer of US economic cycles. WLI has signalled a typical US recession about three months ahead of the LEI, or the index of Leading Economic Indicators of the US Commerce Department.

The LEI was originally developed by ECRI’s founder, Geoffrey H Moore, who has taught Alan Greenspan, the former US Federal Reserve chief.

The components of WLI include US money supply, the JoC-ECRI Industrial Materials Price Index, housing activity, bond market measures, stock prices and job market measures.