(MENAFN- Arab Times) WASHINGTON Sept 19 (Agencies): A gauge designed to predict the economy's future health rose in August but at a much slower pace than in July. The Conference Board said Friday that its index of leading indicators rose 0.2 percent in August the seventh straight increase. But that was much slower than the revised 1.1 percent gain in July. 'The leading indicators point to an economy that is gaining traction but most likely won't repeat its stellar second quarter performance in the second half' said Conference Board economist Ken Goldstein. The economy as measured by the gross domestic product grew at an annual rate of 4.2 percent in the April-June quarter after going into reverse and contracting at a 2.1 percent rate in the January-March quarter a decline that reflected the adverse impacts of a harsh winter. Many economists say that the economy is growing at a solid pace of around 3 percent in the current quarter and will also expand at that rate in the final three months of the year. For August the small gain in the leading index came from strength in financial market conditions as measured by low interest rates and a rise in factory orders. The index is composed of 10 forward-pointing indicators. Three showed strength during the month four declined and three were unchanged. The biggest negative factor holding the index back was a drop in applications for housing permits. Unemployment rates rose in nearly half of US states in August even as employers in two-thirds of the states added jobs. The Labor Department says unemployment increased in 24 states fell in 15 and was unchanged in 11. Hiring picked up in 35 states while it fell in 15. Unemployment rates can rise even when hiring increases if more people start looking for work and don't immediately find jobs. The state figures suggest hiring was broad-based across most regions of the country last month even as nationwide job gains in August were the weakest this year. Georgia's unemployment rate jumped to 8.1 percent from 7.7 percent in July to the highest among all the states. It was followed by Mississippi at 7.9 percent. That's the first time Georgia has had the highest rate since the Great Recession ended. Previously Nevada Michigan and Rhode Island have had the highest. Georgia's rate rose even as its employers added the fourth-most jobs in the nation last month gaining 15800. The hiring and unemployment data can conflict because they come from two separate surveys. One is of households and the other survey covers businesses. The national unemployment rate dipped to 6.1 percent in August from 6.2 percent the previous month. Employers added 142000 jobs below an average of 212000 in the previous 12 months. North Dakota had the lowest rate in the nation as it has for many years at 2.8 percent. The state is benefiting from an oil and gas drilling boom. It was followed by three states with 3.6 percent unemployment: Nebraska South Dakota and Utah. The biggest job gains were in Texas which added 46600 jobs followed by California with 27700 and Michigan with 17900. The Midwest had the lowest unemployment rate among the nation's four regions at 5.8 percent. The unemployment rate in the Northeast was 6.2 percent followed by 6.3 percent in the South and 6.6 percent in the West.
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