"After being essentially flat since late June following a two-month plunge, the [weekly leading index] has now risen to a six-week high, but a more sustained downturn in the [weekly leading index] would certainly heighten recession risks," said Lakshman Achuthan, managing director of the institute.

In the weekly period ending July 30, the weekly leading index level rose to 121.8 from the prior period's reading of 121.0, and the index's growth rate declined 10.3% compared to a decline of 10.7% in the previous period.

The growth rate is derived from a four-week average of the levels that is compared against the previous year's average.