The numbers: The U.S. economy remains on a growth path, according to an index that measures the nation's economic health, though the country's expansion is likely to moderate.
The leading economic index rose 0.1% in October after 0.6% and 0.5% gains in the prior two months, the Conference Board said Wednesday. Economists polled by FactSet had forecast a 0.1% rise.
The LEI is a weighted gauge of 10 indicators designed to signal business-cycle peaks and valleys.
What they are saying? The leading index "increased slightly in October, and the pace of improvement slowed for the first time since May," said Ataman Ozyildirim, economist at the board.
"The index still points to robust economic growth in early 2019, but the rapid pace of growth may already have peaked. While near-term economic growth should remain strong, longer-term growth is likely to moderate to about 2.5% by mid- to late 2019," Ozyildirim added.
What happened: Five of the 10 components of the LEI showed expansion in October, with the biggest positive contribution coming from average consumer expectations for business conditions.
The biggest negative contributors were stock prices, average weekly initial claims for unemployment insurance and building permits.
The LEI is a weighted gauge of 10 indicators designed to signal business-cycle peaks and valleys.
Big picture: The leading index is the latest in a slew of economic signposts that show growth remains steady, if perhaps a bit slower than in early 2018.
With job openings at a record high and unemployment at a 48-year low, Americans feel secure in their jobs and have money to spend. That will keep the economy growing in the near future, even as U.S. interest rates rise.
Don't miss: World's 'most competitive' economy - U.S. regains the crown
Market reaction: The S&P 500 SPX, +1.55%on Wednesday was largely maintaining its early gains, but still down sharply for the holiday-shortened week. The stock-market gauge has been in a slump for the past two months, weighed down in part by forecasts that say economic growth is cooling off.
Meanwhile, the 10-year Treasury note yield TMUBMUSD10Y, -0.03% rose to 3.07%. Earlier this month, the yield reached a seven-year high above 3.23% in anticipation of rising U.S. interest rates.
Jeffry Bartash contributed to this report.