The
index of U.S. leading indicators rose for a fourth consecutive month,
manufacturing surged in the Philadelphia area and jobless claims climbed less
than forecast, signaling the world’s largest economy is accelerating.
“The
soft patch is behind us,” said Jonathan Basile, an economist at Credit Suisse in New York. “We have a
little more momentum. Employers are getting a bit more optimistic about the
outlook and don’t need to cut costs like before.”
The
Conference Board’s gauge of the outlook for the next three to six months
climbed 0.5 percent for a second consecutive time, capping the biggest
back-to-back gains since February- March, the New York-based research group
said today. Factories in the Philadelphia
region expanded at the fastest pace of the year, and the number of
workers seeking jobless benefits over the past four weeks fell to the lowest
level in two years.
The
reports indicated Federal Reserve efforts to spur growth will yield results in
coming months as rising stock prices, near record-low interest rates and an
improving job market help Americans repair tattered finances. The data gave
stocks, already climbing after Ireland
moved closer to getting a financial rescue from the European Union, a further
boost.
The
Standard & Poor’s 500 Index
rose 1.7 percent to 1,198.07 at 11:55 a.m. in New York. Treasury securities dropped,
sending the yield on the benchmark 10-year note up to 2.94 percent from 2.88 percent
late yesterday.
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