The Conference Board Leading Economic Index(LEI) for China increased 0.6 percent in July to 158.6 (2004 = 100), following a 0.9 percent increase in June and a 0.4 percent increase in May. Four of the six components contributed positively to the index in July.

Says Jing Sima, economist for The Conference Board: “July’s increase in the LEI for China signals a continuation of economic expansion through the end of this year. However, the strength in leading indicators has been concentrated in bank credit expansion and real estate investment so far this year, while the one-off effect from improved consumer expectations in June abated in July. Industrial output, employment, and consumer spending continued to drive the rising trend in the CEI, tracking current conditions for China through July, but their rate of growth has tapered off noticeably. Both the LEI and CEI for China suggest that the rate of economic growth will be slower in 2011 than last year.”

The Conference Board Coincident Economic Index(CEI) for China, which measures current economic activity, increased 0.4 percent in July to 205.5 (2004 = 100), following a 1.2 percent increase in June and a 0.6 percent increase in May. Four of the five components contributed positively to the index in July.

The Conference Board LEI for China aggregates six economic indicators that measure economic activity in China. Each of the LEI components has proven accurate on its own. Aggregating individual indicators into a composite index filters out so-called “noise” to show underlying trends more clearly.