US economic growth 'to quicken'

The study says the US jobs market remains upbeat

US economic growth should quicken in the coming months as a healthy job market offsets ongoing weakness in the housing sector, a study predicts.

The Conference Board said its index of leading economic indicators rose by 0.3% in May, higher than expected, and a rebound from April's 0.3% fall.

It said the economy is also benefiting from upbeat consumer sentiment and continuing high share prices.

The Federal Reserve also sees faster growth despite the housing weakness.

'Contained'

Fed boss Ben Bernanke said at the start of this month that the economy will expand "at a moderate pace", despite the housing market "drag".

His comments came after official data showed that the US economy grew at its weakest rate in more than four years during the first three months of 2007.

Global Insight economist Patrick Newport said the latest Conference Board figure was an indication that the housing slump remained fairly contained.

"It just hasn't spilled over to the rest of the economy," he said.