U.S. Leading Index Drops for Third Month

The Conference Board announced Monday that the U.S. leading index declined 0.2% in August, falling for a third consecutive month and declining more than analysts expected.

The board's Index of Leading Economic Indicators dropped 0.2% to 111.8, after falling a revised 0.1 percent in July.
Analysts had expected decline of 0.1% in August. The index measures where the overall U.S. economy is headed in the next three to six months. It stood at 100 in 1996, its base year. Seven of the 10 indicators that make up the leading index declined in August, including manufacturers' new orders for non-defense capital goods, building permits and the index of consumer expectations, the Conference Board said.
Conference Board economist Ken Goldstein said the data showed the nation's "weak recovery could stall, especially if the consumer market starts to slow."
The Conference Board's coincident index, which measures current economic activity, rose 0.1% in August to 115.0. The index of lagging indicators, which reflects changes that have already occurred, fell 0.1% last month to 100.7.