A 0.4 pct rise in the March U.S. indexof leading indicators points to continued moderate U.S. real
economic growth, economists said.
    "The report is consistent with a modestly growing economy,"
said Steve Slifer of Lehman Government Securities Inc. "The
economy is not robust, but we're not heading into a recession
either."
    "The report suggests more of the same: continued moderate
growth," said Ward McCarthy of Merrill Lynch Government and Co
Inc. "The gain was mostly in stock prices. There was no change
in the fundamental movement of the economy."
    The Commerce Department said that higher stock prices led
the March gain. Unemployment claims, vendor performance,
contracts and orders for plant and equipment, manufacturers'
orders, and building permits also were positive.
    The average workweek, raw materials prices, and money
supply detracted from the index.
    Economists noted that the index signals the direction but
not the magnitude of changes in gross national product.
    "You can't derive profound conclusions on the economy from
the report," McCarthy said. "The link between leading
indicators and the economy is not strong."
 Reuter
