Financial Watch

The index of U.S. leading indicators rose in March by the most in 10 months, a sign the economy will keep growing into the second half of the year.

The 1.4 percent increase in the New York-based Conference Board’s measure of the outlook for three to six months was more than anticipated and followed a revised 0.4 percent gain in February.

Manufacturers are ratcheting up production and factory workers are putting in longer hours as companies rebuild inventories and ship more goods overseas. Further improvement in the job market will help sustain the economy’s recovery from the worst recession since the 1930s.

“The economy really seems to be gaining momentum, with better-than-expected data coming from a wider variety of sources,” said Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit. “The sectors that were doing well appear to be doing even better and those that were struggling appear to be seeing signs of renewed activity.”

The figure compared with a median estimate of 1.1 percent by economists surveyed by Bloomberg News. Estimates ranged from gains of 0.5 percent to 1.5 percent.

Seven of the 10 indicators in the leading index contributed to the gain, led by the interest-rate spread, an increase in factory hours, slower supplier deliveries, gains in stock prices and rising building permits. Shrinking money supply, fewer orders for capital goods and a drop in consumer expectations weighed on the index.