ECRI: WLI Growth At 24-Week High

Positive feedback loop ... self-reinforcing? My emphasis.

(Reuters) - NEW YORK, April 9 (Reuters) - A weekly measure of future U.S. economic growth continued to climb and its annualized growth rate reached a 24-week high, suggesting positive economic turnaround in the near future, a research group said on Friday.

Still, the research group said its measure of current conditions sank to a record low, verifying that economic health is at its worst since World War Two. The Economic Cycle Research Institute, a New York-based independent forecasting group, said its Weekly Leading Index rose to 107.9 for the week ending April 3, from 106.6, which was revised lower from 106.7.

The index's annualized growth rate improved to negative 20.6 percent from the prior week's rate of negative 22.2 percent. Still, ECRI's Weekly Coincident Index -- which measures current economic conditions -- fell 8.8 percent to a record low, and the research group said this was its first objective evidence that this recession is the worst since World War Two.

"With Weekly Leading Index growth recovering to a 24-week high, we are fast approaching an upturn in U.S. economic growth when the pace of recession will begin to slow" said Lakshman Achuthan, managing director at ECRI. "At the same time, growth in the Weekly Coincident Index fell to a record low... in the week ending April 3. This follows the earlier plunge in WLI growth and confirms that we are in the worst recession since World War II." The weekly index rose due to lower jobless claims and interest rates, partly offset by lower stock prices, Achuthan said.

Achuthan sounds rather bullish, see the interview at BBN, starting from 4th minute!