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NEW YORK, July 11 /PRNewswire/ -- The Conference Board announced today that the leading index for Korea increased 0.5 percent, while the coincident index increased 0.2 percent in May.

-- The leading index increased sharply in May following three consecutive
declines. Stock prices, index of inventories to shipments (inverted),
and value of machinery orders were the largest positive contributions
to the index this month. The six-month growth rate of the leading
index has slowed to a 0.1 percent rate (a 0.1 percent annual rate) in
May. Although this is an improvement from the -0.7 percent rate in
March, it is well below the 2.0-4.0 percent rate in late 2006. However,
the strengths and weaknesses among the leading indicators have become
somewhat balanced in the last two months.
-- The coincident index increased again in May, and the strength in the
index continued to be widespread. At the same time, real GDP grew at a
3.6 percent annual rate in the first quarter of 2007, slightly down
from a 4.4 percent average annual rate in the second half of 2006.
Despite the increase in May, the moderation in the growth rate of the
leading index since late 2006 so far suggests that slow to moderate
economic growth is likely to continue in the near term.

LEADING INDICATORS. Four of the seven components that make up the leading index increased in May. The positive contributors -- from the largest positive contributor to the smallest -- were stock prices, the (inverted) index of inventories to shipments, value of machinery orders, and real exports FOB. Negative contributors -- from the largest negative contributor to the smallest -- were private construction orders, the (inverted) yield of government public bonds, and letter of credit arrivals.

With the 0.5 percent increase in May, the leading index now stands at 157.7 (1990=100). Based on revised data, this index declined 0.2 percent in April and declined 0.6 percent in March. During the six-month span through May, the leading index increased 0.1 percent, with three of the seven components advancing (diffusion index, six-month span equals 57.1 percent).

COINCIDENT INDICATORS. Three of the four components that make up the coincident index increased in May. The positive contributors to the leading index -- in order from the largest positive contributor to the smallest -- were the wholesale and retail sales component, industrial production, and total employment. Monthly cash earnings declined in May.

With the 0.2 percent increase in May, the coincident index now stands at 167.6 (1990=100). Based on revised data, this index increased 1.0 percent in April and decreased 1.3 percent in March. During the six-month span through May, the coincident index increased 0.9 percent, with three of the four components advancing (diffusion index, six-month span equals 75.0 percent).

ABOUT THE CONFERENCE BOARD. Founded in 1916, The Conference Board is the premier business membership and research network. The Conference Board has become a global leader in helping executives build strong professional relationships, expand their business knowledge and find solutions to a wide range of business challenges. The Board's Economics Program, under the direction of Chief Economist Gail Fosler, is a recognized source of forecasts, economic analysis and objective indicators such as the Leading Economic Indicators and the Consumer Confidence Index.

This role is part of a long tradition of research and education that stretches back to the compilation of the first continuous measure of the cost of living in the United States in 1919. In 1995, The Conference Board assumed responsibility for computing the composite indexes from the U.S. Department of Commerce. The Conference Board now produces business cycle indexes for the U.S., Australia, France, Germany, Korea, Japan, Mexico, Spain and the U.K. To subscribe to any of these indexes, please contact Customer Service at 212-339-0345, or email indicators@conference-board.org.

The next release is scheduled for Tuesday, August 14, 2007 at 9:00 P.M. (ET)

Korea -- Wednesday, August 15, 2007 at 10:00 A.M. (KOR)

For more information visit our Website: www.conference-board.org/economics/bci

First Call Analyst:
FCMN Contact:

Source: The Conference Board

CONTACT: Indicator Program, +1-212-339-0330; or Media Contacts, Frank
Tortorici, +1-212-339-0231, or Carol Courter, +1-212-339-0232, both of The
Conference Board

Web site:

http://www.conference-board.org/economics/bci

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