Good Signs for the Economy

WASHINGTON (Reuters) -- An index gauging the U.S. economy's prospects increased for a third straight month in June, suggesting the recession was drawing to a close, a private research firm said Monday.

The index of leading economic indicators, which is supposed to forecast economic trends six to nine months ahead, rose 0.7% in June following a revised 1.3% gain in May, the New York-based Conference Board said.

Wall Street economists had forecast a rise of 0.5% after an initial 1.2% May increase.

Over the first half of the year, the index has increased at a 4.1% annual rate, the research group said.

"The recession has been losing steam since the spring, although very large job losses continue," Ken Goldstein, a Conference Board economist, said in a statement. "Nevertheless, confidence is slowly rebuilding."

"If these trends continue, expect a slow recovery this autumn," he said.