U.S. growth index hits 5-year lowThe Economic Cycle Research Institute's leading index fell to 126.4 in the week ended Aug. 8 from a downwardly revised 126.9 in the prior week. That's the lowest since '03. The research group blamed weaker money supply growth and lower stock prices, partly offset by lower jobless claims. With the WLI plunging over the last five weeks, the likelihood of a near-term business cycle recovery has "dwindled markedly," the ECRI said. The 4-week annualized growth rate fell to -10.8%, near April's lows.
Foreign inflow picked up in June
Foreigners bought a net $51.1 bil in U.S. securities in June, up from $12.3 bil in May. Of that, net foreign private inflow was $38 bil and net foreign official flow was $13.1 bil. The June flow into net long-term securities declined to $53.4 bil from a revised $83.2 bil the prior month, as confidence waned due to bank failures and write-offs in the U.S. financial sector. With the U.S. trade deficit falling, there's less concern about attracting foreign capital.
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