US Leading Economic Indicators Index Rose 0.2% in October

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By Shobhana Chandra and Courtney Schlisserman

Nov. 20 (Bloomberg) -- An index of leading U.S. economic indicators rose in October, driven by growing optimism among consumers and gains in stock prices.

The Conference Board's index increased 0.2 percent after a revised gain of 0.4 percent in September that was four times larger than initially reported, the New York-based group said today. The index points to the direction of the economy over the next three to six months.

The report reinforces Federal Reserve forecasts for a ``moderate'' economic expansion as consumer demand cushions the impact of the housing slump. Consumers, whose spending accounts for two-thirds of the economy, are getting a lift from a decline in energy prices that's also reducing costs for companies.

``There's enough demand out there that's supported by strong underlying trends in spending, whether it's by businesses or consumers,'' Timothy Rogers, chief economist at Briefing.com in Boston, said before the report. ``There's some spillover from housing, but it's not going to bring the economy down.''