WASHINGTON (MarketWatch) — The U.S. appears poised for faster growth in early 2014, according to an index measuring the nation’s economic health.

The leading economic index increased by 0.8% last month — the fifth-straight gain — spearheaded by improvements in hiring and manufacturing.

“The LEI continues on a broad-based upward trend, suggesting gradually strengthening economic conditions through early 2014,” said Ataman Ozyildirim, an economist at the Conference Board, producer of the report.

The Federal Reserve on Wednesday signaled it also expects the economy to strengthen over the next year, surprising U.S. markets with a long-awaited decision to scale back a massive bond-buying strategy that's allowed businesses and consumers to borrow at historically low interest rates.

Yet another report on Thursday that tallies up sales of previously owned homes showed the potential risks of the Fed’s retreat. Sales fell in November for the third-straight month, partly reflecting the rise in mortgage rates since early summer in anticipation of the central bank’s pullback.

The housing market has been one of the economy’s strongest sectors in 2013 and analysts expect another good year in 2014, though escalating mortgage rates could take some of the shine off projected sales.

Also on Thursday, the Philadelphia Federal Reserve’s manufacturing survey rose less than expected, a sign that manufacturers continue to face headwinds of their own.

The LEI is a weighted gauge of 10 indicators designed to signal business-cycle peaks and valleys. The coincident index, which measures current conditions, rose 0.4% in November, while the lagging index was unchanged.

More news from MarketWatch:

New targets redefine high blood pressure

Janet Yellen means a ‘more dovish Fed’: Paul Ryan