Falling Index Is More Evidence of Slowdown

In a further sign of economic slowing, a key forecasting gauge for the U.S. economy fell for a third straight month in July. The Conference Board said that the index of leading economic indicators dipped 0.1% last month, in line with forecasts of Wall Street economists, following identical declines in June and May. The June index was previously reported as unchanged. The private research group said the coincident index, a barometer of current economic trends, was unchanged in July after an 0.2% rise in June. The lagging index, which measures past trends in the economy, was down 0.1% after a 0.6% rise in June. Five of the 10 components that make up the leading indicators index were positive in July, led by consumer expectations and the average workweek. The other five components of the index were negative last month, led by manufacturers’ new orders for consumer goods and for non-defense capital goods.