Leading Indicators Index to Be Released Today

This week’s most important economic report is set for release today: the July index of leading economic indicators, a key gauge of economic activity in the United States.

The index, issued by the Conference Board, a private research firm, is expected to show a decline of between 0.4% and 0.5%, according to economists.

The index remained unchanged in June, amid signs that the U.S. economy was pulling out of its recent slowdown. The recovery has been fueled mainly by consumer spending, which represents two-thirds of the economy. But since then the market piled on losses, carving out fresh five-year lows in late July, and this, many fear, could hit the economic recovery.

Recent economic data painted a worsening picture, fueling a debate on whether the economy would face a “double dip” or renewed contraction after recovering from an economic slump.

The Federal Reserve last week left interest rates unchanged but warned of economic weakness, spurring a sell-off in the stock market.

Also on tap are a number of second-tier economic reports.

Wall Street may cast an eye on international trade data for June, coming Tuesday and expected to show a deficit of $37.29 billion compared with $37.64 billion in May.

Thursday, investors get jobless claims figures for the week of Aug. 17--the number of Americans filing for weekly first-time unemployment benefits. The Fed keeps an eye on the labor market for clues about the economy’s health.

The total number of people collecting jobless benefits has declined after peaking in May at a weekly average of almost 3.8 million. Since July 1, continuing claims have averaged 3.53 million a week, less than the 3.57-million average during the final three months of last year, and a sign some unemployed workers may be finding jobs.