US leading indicators index plummets 0.7% in July

21 August 2008 17:36  [Source: ICIS news]

WASHINGTON (ICIS news)--The index of leading US economic indicators fell sharply by 0.7% in July, the Conference Board said on Thursday, dragged down again by the continuing housing slump, stock market declines and unemployment.

 

The New York City-based board, a 92-year-old business analysis group, noted that July’s decline was the second decrease in the leading index in the past three months.

 

The 0.7% drop in July follows a more marginal 0.1% decrease in June and an equally miniscule gain of 0.1% in May.

 

The new and precipitous fall in the leading index “suggests that the risks for further economic weakening in the near term remain elevated”, the board said.

 

The board’s leading index is made up of ten economic indicators, including stock prices, interest rates, manufacturers’ orders, building permits and unemployment claims, among others.

 

In July’s index reading, “building permits, stock prices and weekly initial claims [for unemployment insurance] made very large negative contributions”, the board said.  Those declines more than offset gains in the interest rate spread and consumer expectations.

 

The board noted that “Real GDP growth slowed to a 1.4% average annual rate in the first half of this year (including a 1.9% annual rate in the second quarter), sharply lower than the average annual rate of 2.3% in the second half of 2007”.

 

To discuss issues facing the chemical industry go to ICIS connect

By: Joe Kamalick
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly