Indicators Show U.S. Economy Still Slowing

For the fourth consecutive month, a key measure of U.S. economic activity fell slightly, the latest sign that economic growth is continuing to slow, an industry group said Tuesday.

The index of leading economic indicators declined 0.1% in August to 105.7, according to the New York-based Conference Board. The index’s decline met analysts’ predictions.

The index, which attempts to forecast economic trends for the next three to six months, stood at 100 in 1996, its base year. Except for a 0.1% increase in March, the index has been flat or declining this year.

“The flat pace in the leading indicators points to continued moderations in U.S. economic activity,” said Conference Board economist Ken Goldstein. “This is reflected in indicators for manufacturing, housing, consumer, labor and financial markets.

“The economy is starting to reflect the impact of growth restraints. Interest rate and growth restraints will determine how much slower the economy will be in the last few months of the year.”

Six of the 10 leading indicators--including average workweek production, vendor performance, index rate spread and consumer expectations--fell in August.

The economy is still showing strength in many areas: Among the index indicators that rose in August were money supply and manufacturers’ new orders.

The board’s index of coincident indicators, which gauges current economic activity, rose 0.2% in August to 115.9 after remaining flat in July at a revised 115.7.

The index of lagging indicators, which reflects changes that have already occurred, increased by 0.3% to 105.6 after remaining flat in July at a revised 105.3.

The three indexes are used together as a barometer of overall economic trends.

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New-Home Sales

Seasonally adjusted annual rate, in thousands of units:

*

August: 893,000 units

Source: Commerce Department