The Conference Board’s US leading economic index rose 0.7% in May to a reading of 123.1 (2010 = 100), following increases of 0.7% in April and 0.4% in March.

“The US [leading economic index] increased sharply again in May, confirming the outlook for more economic expansion in the second half of the year after what looks to be a much weaker first half,” said Ataman Ozyildirim, director of business cycles and growth research at The Conference Board. “While residential construction and consumer expectations support the more positive outlook, industrial production and new orders in manufacturing are painting a somewhat more mixed picture.”