U.S. leading index rises to 1-1/2 year high in Aug

WASHINGTON, Sept 21 - An index measuring the U.S. economy's prospects rose for a fifth straight month in August to a 1-1/2 year high as stock market prices surged amid views a recovery had started, data from a private research group showed on Monday.

The Conference Board's index of leading economic indicators, which is supposed to forecast economic trends six to nine months ahead, rose 0.6 percent to 102.5, the highest level since January 2008, after a revised 0.9 percent gain in July.

Wall Street economists had forecast a rise of 0.7 percent after an initially reported 0.6 percent increase in July.

"This suggests that the recession is bottoming out. These numbers are consistent with the view that after a severe downturn, a recovery is very near. But the intensity and pattern of that recovery is more uncertain," said Conference Board economist Ken Goldstein. (Reporting by Lucia Mutikani, editing by Neil Stempleman)