This morning The October Conference Board Leading Economic Index (LEI) surged 1.2% which was twice the pace Wall Street anticipated.  LEI saw nine of the ten components of the U.S. higher for the month of October:

• Average weekly hours, manufacturing
• Average weekly initial claims for unemployment insurance
• Manufacturers’ new orders, consumer goods and materials
• ISM® Index of New Orders
• Building permits, new private housing units
• Stock prices, 500 common stocks
• Leading Credit Index™
• Interest rate spread, 10-year Treasury bonds less federal funds
• Average consumer expectations for business conditions
• Manufacturers' new orders, nondefense capital goods excluding aircraft orders

While the LEI is a trailing dataset, in the past It has been very influential with the Federal Reserve, especially the Greenspan Fed.

GDP Growth

This news dovetails a sharp spike in 4Q 2017 GDP estimate at the New York Federal Reserve.  That move was driven by strong numbers on capacity utilization, industrial production along with housing starts and permits.

The last time GDP grew more than 3% in three straight quarters in a given year was on 1999.