Time is GMT + 8 hours Posted: 22-Aug-2008 02:55 hrs
A for sale sign stands in front of a home in Miami, Florida. A forward-looking index of key US economic indicators fell by a more-than-expected 0.9 percent in July as economic headwinds continued to challenge American consumers.
A forward-looking index of key US economic indicators fell by a more-than-expected 0.7 percent in July as economic headwinds continued to challenge American consumers, the Conference Board said Thursday.
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The private survey group said its Leading Economic Index, which tracks a range of economic and market factors, dropped notably after remaining unchanged in June, suggesting consumers remain pessimistic about economic momentum.
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Most economists had predicted a drop of 0.3 percent in the index.
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"The recent decline in gas prices isn't enough to overcome all the negative momentum that's been building up through the spring and summer," said Ken Goldstein, a labor economist at the Conference Board.
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Sagging demand for home construction permits, depressed stock prices, increased claims for unemployment benefits and lackluster manufacturers' orders for consumer goods dragged down the overall index reading last month.
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The index sagged as a long-running housing slump continues to overshadow the world's largest economy. A related credit crunch, increased job cuts and high energy costs are also weighing on the economy and consumers' sense of well-being.
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"A few months ago, there was some discussion about a second-half recovery. If there's a second-half recovery, it'll be the second half of 2009," Goldstein said.
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Some economists said earlier this year that the economy could pick up steam in late 2008, especially after an emergency 168-billion-dollar economic stimulus was approved earlier this year by US President George W. Bush, but doubts are now rising about whether the economy will strengthen so soon.
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Other indicators produced by the Conference Board were mixed. The coincident index of current activity edged up 0.1 percent while the lagging index rose 0.4 percent. — AFP
