The ECRI Weekly Leading Indicator (WLI) for the week ended July 30 improved for the third consecutive week while the ardently watched ECRI WLI Smoothed Annualised Growth Rate came in at -10.3% compared to the previous week’s -10.7%.
The marginally improved growth rate can largely be attributed to the improvement of the S&P 500 growth rate from -6.0% to -1.7%.
Sources: ECRI (various internet sources); I-Net; Plexus Asset Management.
The 10-year bond yield aided the ECRI growth rate marginally as the growth rate of the former improved slightly from -30.4% to -29.8%.
Sources: ECRI (various internet sources); I-Net; Plexus Asset Management.
Growth in the ECRI WLI was held back by a further deterioration in growth in initial jobless claims that worsened from -17.6% to -17.8%.
Sources: ECRI (various internet sources); FRED; I-Net; Plexus Asset Management.
Gauge of this week’s ECRI WLI Smoothed Annualised Growth rate based on the week ended 6 August 2010:
| Component | Last week 6 August | Previous week 30 July | Momentum |
| Smoothed Annualised Growth | |||
| S&P 500 | -0.7% | -1.7% | Improved |
| 10-year bond yield | -32.0% | -29.8% | Weakened |
| Initial jobless claims | -16.7% | -17.8% | Improved slightly |
| Conclusion | |||
| ECRI WLI | Unchanged/slight improvement | -10.3% | |
