US leading indicators fall sharply in October

20 November 2008 17:21  [Source: ICIS news]

WASHINGTON (ICIS news)--The index of leading US economic indicators fell sharply by 0.8% in October from September, the Conference Board said on Thursday, driven lower by falling stock prices, consumer worries and the ongoing housing crisis.

 

The New York City-based Conference Board, a 92-year-old business analysis group, also noted that its leading indicators index - a composite of ten economic measures - is falling at a faster rate than earlier this year.

 

“Between April and October 2008, the leading index declined 2.4% (a -4.7% annual rate), falling considerably faster than the 1.2% decrease (a -2.3% annual rate) over the previous six months,” the board said.

 

“In addition, the weaknesses among the leading indicators have remained widespread in recent months,” the analysis said.

 

October’s sharp decline in the index more than offset the modest 0.3% gain recorded for the leading indicators in September. That September gain had been the first upward move in the index in five months.

 

Along with recent news that US gross domestic production (GDP) fell by 0.3% in the third quarter, the board said the accelerating decline in its leading indicators index “continues to suggest that the economy is unlikely to improve soon, and economic activity may contract further in the near term”.

 

The leading indicators index stands at 99.6 for October, compared with the 100 measure in the baseline year of 2004.  The index was at a more robust 102 as recently as April this year, the board noted.

 

However, there was some positive economic news among the ten indicators, the board said.  Interest rates remain low, and manufacturers’ new orders for consumer goods and materials rose marginally last month.

 

To discuss issues facing the chemical industry go to ICIS connect

By: Joe Kamalick
+1 713 525 2653

< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 29 Oct 2009)

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