Economy may be bouncing back, leading indicators show

Don’t dust off the trusty old credit cards and go on a spending spree just yet — but the economy seems to be gaining strength.

The Conference Board Leading Economic Index increased 1.2% in May, after rising 1.1% in April, according to data released today from The Conference Board Inc., a New York-based business membership and research network. The index is designed to forecast activity in the next three to six months.

At the same time, the Conference Board Coincident Economic Index, which measures the current state of the economy, declined 0.2% in May, compared with declines of 0.3% in April and 0.7% in March, the report said.

And the Conference Board Lagging Economic Index, which illustrates economic conditions over the last three to six months, dropped 0.2% in May, following declines of 0.8% in April and 0.6% in March.

“The declines are less intense,” Ken Goldstein, an economist at The Conference Board, said in the statement. “The recession is losing steam. Confidence is rebuilding and financial market volatility is abating. Even the housing market appears to be stabilizing.”