U.S. Leading Economic Indicators Index Increased 0.6% in August (Shobhana Chandra)

Sept. 21 (Bloomberg) -- The index of U.S. leading economic indicators in August rose for the fifth straight time, capping the longest stretch of gains since 2004 and signaling a recovery is under way.

The Conference Board’s gauge of the economic outlook for the next three to six months rose 0.6 percent, in line with forecasts, after a revised 0.9 percent rise in July, according to data that the New York-based group released today.

The gains in stock prices, consumer confidence and homebuilding that are buoying the leading index bolster Federal Reserve Chairman Ben S. Bernanke’s view that the worst recession since the Great Depression has probably ended. At the same time, rising unemployment and tight credit are a reminder that a rebound will be slow and gradual.

“The recession has ended and the economy is turning up,” Joseph Brusuelas, a director at Moody’s Economy.com in West Chester, Pennsylvania, said before the report. “The sustainability of the expansion into 2010 requires a recovery in job growth.”