U.S.: A weaker dollar positive?

In the United States, the Conference Board leading economic indicator index increased for the six straight month in September. Eight out of ten components improved, confirming that the economic recovery is underway. The expansion of global economies, as well as the decline of the U.S. dollar, should help exports over the medium term. However, growth might remain fragile for some time, as domestic demand is still weak. In reality, a weaker dollar could be the cure for the huge U.S. current account deficit, which has declined steady since its peak in 2005. The housing market is at the contrary expanding, although swinging data is common during this stage of growth. After few good months of gains during which housing starts rebounded 23% from April’s low, housing starts rose only 0.5% in September to 590,000 units annualized from Augusts’ 587,00. Starts are up 23% from April, but they are still 28% below the level of one year ago.