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WASHINGTON : A forward-looking index of key US economic indicators fell by a more-than-expected 0.9 percent in July as economic headwinds continued to challenge American consumers, the Conference Board said Thursday.
The private survey group said its Leading Economic Index, which tracks a range of economic and market factors, dropped notably after remaining unchanged in June, suggesting consumers remain pessimistic about economic momentum.
Most economists had predicted a drop of 0.3 percent in the index.
"The recent decline in gas prices isn't enough to overcome all the negative momentum that's been building up through the spring and summer," said Ken Goldstein, a labor economist at the Conference Board.
Sagging demand for home construction permits, depressed stock prices, increased claims for unemployment benefits and lackluster manufacturers' orders for consumer goods dragged down the overall index reading last month.
The index sagged as a long-running housing slump continues to overshadow the world's largest economy. A related credit crunch, increased job cuts and high energy costs are also weighing on the economy and consumers' sense of well-being.
"A few months ago, there was some discussion about a second-half recovery. If there's a second-half recovery, it'll be the second half of 2009," Goldstein said.
Some economists said earlier this year that the economy could pick up steam in late 2008, especially after an emergency 168-billion-dollar economic stimulus was approved earlier this year by US President George W. Bush, but doubts are now rising about whether the economy will strengthen so soon.
Other indicators produced by the Conference Board were mixed. The coincident index of current activity edged up 0.1 percent while the lagging index rose 0.4 percent.
- AFP /ls
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