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U.S. Leading Index down 0.8%
The Conference Board announced today that the U.S. leading index decreased 0.8 percent, the coincident index increased 0.2 percent and the lagging index increased 0.1 percent in October.
The leading index declined sharply in October as stock prices, building permits, consumer expectations and the index of supplier deliveries made large negative contributions to the index, despite continued positive contributions from real money supply and the interest rate spread.
The coincident index increased in October, following five consecutive monthly declines. Industrial production recovered from its sharp September drop (partially due to two large hurricanes during that month), more than offsetting the continued decline in employment.
Taken together, the persistent and extensive deterioration of the composite indexes continues to suggest that the economy is unlikely to improve soon, and economic activity may contract further in the near term.
Posted: November 20, 2008 Thursday 10:03 AM