On Monday, the index of leading economic indicators rose slightly more than expected for the month of March, coming in with an increase of 0.8 percent versus the expected 0.7 percent.
This index appears to confirm that the Federal Reserve’s optimism about the economy may by correct.
The increase in the leading indicators was partly driven by the factory workweek, a positive sign for the manufacturing sector.
This is potentially bullish support for U.S. oil consumption as the workforce expands and people drive to get to their jobs.
March’s gains in the index of leading indicators point to accelerating economic growth over the next six months.
While crude prices have been rising since the start of April, inventories at key U.S. delivery points have drained away to refineries in the Gulf Coast, due to expanded pipeline capacity.