Leading Indicators Index Falls

The index of leading U.S. economic indicators declined in March by the most in two years as a rise in the cost of gasoline made consumers less confident.

The New York-based Conference Board said Thursday that its gauge predicting the performance of the economy over the next three to six months fell 0.4% after a 0.1% rise in February. Separate data showed that jobless claims fell last week to match a 10-week low.

Eight of the 10 indicators that make up the leading index contributed to the decline in March. Several of the indicators were influenced by a surge in oil prices, which averaged $54.63 a barrel in March, up from $48.05 a barrel in February. Oil prices have averaged about $53 in April.

Indicators pulling the index lower included weekly initial jobless claims, which averaged 336,000 in March, up from 307,000 in February.

The average for the Standard & Poor’s 500 index declined 0.4% over the month, and the University of Michigan’s expectations index fell in March to 82.8 from 84.4 in February. It fell further in April to its lowest since March 2003, a preliminary reading last week showed.

A drop in manufacturing hours worked, a decline in the money supply, fewer orders to factories for capital equipment and faster supplier deliveries that suggest a slowdown in orders also contributed to the decline.