Liz Ann Sonders speaking at a Schwab Impact conference. (Photo: Schwab)
Leading indicators are inching back to cycle highs, according to Liz Ann Sonders, chief investment strategist at Charles Schwab.
In her latest market commentary, Sonders writes, "The uptick in the leading indicators confirm what other data releases for the U.S. economy show, which is that growth has rebounded a bit after a very slow start to the year."
Sonders, who is known to often keep a close eye on leading economic indicators, looks at what she calls "the most widely-watched index," The Conference Board's monthly Leading Economic Index (LEI).
"Taken together, the current behavior of the composite indexes and their components suggest that the expansion in economic activity should continue, but the pace of growth is likely to decelerate by year end," according to The Conference Board's release.
The LEI for March increased by 0.4%, which was better than expectations and led by the continued plunge in initial unemployment claims.
According to Sonders, "the gain in March was sufficient to get the LEI back up above the September 2018 high and further ease near-to-medium term recession concerns."
Although the March reading did slightly beat last September's high, Sonders noted that it's been in a fairly flat trend since then.
