Leading Economic Indicators Continue Dropping

The Conference Board, a private research group, said Monday its index of leading economic indicators pointed to a further slide in activity in June 2008, extending an unexpected decline the previous month. The index, designed to predict the economy's performance over the next three to six months, fell by 0.1% in June to a reading of 101.7. The measure has fallen 2.1 % over the last 12 months.

“The domestic economy is showing no sign of strength," said Conference Board economist Ken Goldstein. "The deep financial crisis, a prolonged, intense slump in housing, high gasoline and food prices, weak consumer confidence and a weak dollar are all combining to produce unrelenting downward pressure on economic activity," he said.

Seven of the ten indicators that make up the leading index are known ahead of time: stock prices, jobless claims, building permits, consumer expectations, the yield curve, supplier delivery times and factory hours. The remaining three that are estimated by the Conference Board include new orders for consumer groups, bookings for capital equipment and money supply.