Leading economic indicators rise 0.4% in December (by Ruth Mantell)

WASHINGTON (MarketWatch) -- Data suggest that the economy will improve early this year, the Conference Board said Thursday as it reported that its index of leading economic indicators grew 0.4% in December, led by the interest-rate spread and jobless claims, compared with growth of 0.2% in November. "Looking ahead, the big question remains whether cooling conditions elsewhere will limit domestic growth or, conversely growth in the U.S. will lend some economic support to the rest of the globe," noted Ken Goldstein, a Conference Board economist, in a statement. Economists had expected a December gain of 0.9%. The LEI is a weighted gauge of 10 indicators that are designed to signal business cycle peaks and troughs. Among the 10 indicators that make up the LEI, seven made positive contributions in December. There were two negative contributors, led by consumer expectations. Building permits held steady. The report for December incorporates major revisions to the components, such as replacing the real money supply with a barometer of credit, aiming to strengthen the LEI's predictions.