LEI for South Korea Remained Unchanged in August

For Release 10:30 AM ET, October 8, 2024

Using the Composite Indexes: The Leading Economic Index (LEI) provides an early indication of significant turning points in the business cycle and where the economy is heading in the near term. The Coincident Economic Index (CEI) provides an indication of the current state of the economy. Additional details are below.

The Conference Board Leading Economic Index^®(LEI) for South Korea remained unchanged at 108.5 (2016=100) in August 2024, after decreasing by 0.3% in July. The LEI significantly slowed to 0.6% growth over the six-month period between February and August 2024, from a 2.8% expansion over the previous six-month period between August 2023 and February 2024.

The Conference Board Coincident Economic Index^® (CEI) for South Korea increased by 0.9% to 107.9 (2016=100) in August 2024, more than offsetting the 0.7% decline in July. Despite this improvement, the CEI contracted by 0.5% over the six-month period between February and August 2024, partially reversing the 0.8% expansion over the previous six-month period.

"The South Korea LEI remained unchanged in August," said Malala Lin, Economic Research Associate, at The Conference Board. "Stock prices contributed negatively to the Index in August, as a result of the financial turmoil early in the month. Lower value of machinery orders, and private construction orders also weighed on the LEI. Meanwhile, inventory-to-shipment index, exports, and bond yields improved, offsetting these negative contributions. The six-month growth rate of the LEI slowed in recent months but remained positive. In addition, the annual growth rate ticked up. Overall, the Index still suggested a positive economic outlook with moderate growth continuing in the near-term."

The next release is scheduled for Thursday, November 7, 2024, at 10:30 A.M. ET.