According to the Conference Board, the index of U.S. leading indicators deteriorated more than expected by 0.5% in August, following the previous month's 0.7% loss. Economists had expected a decline of 0.2%.
Over the past six months, the leading index has fallen 2.1%, with four of the 10 components advancing.
The leading index saw positive contributions from the consumer goods orders, stock prices, interest rate spread and consumer expectations.
The coincident index, which measures what is currently happening in the economy, declined 0.1% in August, falling from last month's flat performance. Over the past six months, the coincident index has fallen 0.7%.
The positive contributors to the index - beginning with the largest positive contributor - were personal income less transfer payments and business sales, the report noted. The negative contributor was employees on nonagricultural payrolls.
The lagging index, which looks backwards at where the economy has been, increased 0.4% in August, with three of the seven indicators in decline.
The Conference Board's leading economic indicators report is a composite of selected economic indicators that are known to move up or down well in advance of the rest of the economy. There are 10 components; seven are non-financial, while the other three are financial.
By Steve Stecyk and edited by Sarah Sussman
©CEP News Ltd. 2008