Economic Indicators Fall in November

Washington, DC, Dec. 18, 2008--More economic weakness is in store for the first few months of 2009, the Conference Board said Thursday, citing continuing housing and credit problems.

The research organization's index of leading economic indicators fell 0.4% in November, with negative contributions from six of the 10 component indicators, and the largest negative contribution from building permits. The largest positive contribution came from the money supply.

"An intense housing downturn that's about to begin its fourth year and a severe financial crisis with nearly frozen credit markets have sharply lowered consumer and business expectations," said Ken Goldstein, economist at the Conference Board.

November's result would have been "significantly" weaker without the large increases seen from inflation-adjusted money supply since September, according to the Conference Board. The index is designed to forecast economic activity six to nine months ahead.
 
The result for October was revised to show a decline of 0.9% from a prior estimate of a 0.8% drop.