New York, NY, April 21--A key indicator of future U.S. economic activity fell 0.2 percent in March, the Conference Board said Monday. The Index of Leading Economic Indicators measures where the overall U.S. economy is headed in the next three to six months. It stood at 100 in 1996, its base year.
Consumer spending has been the fuel for the struggling economy, but according to the Conference Board, their desire to spend appears to be tapering off.
“The combination of the slowing in consumption growth and the delayed start to more investment has effectively extended the soft spot that the economy’s been in,” said Conference Board economist Ken Goldstein. He added that the end of the Iraq war has not boosted business capital investments or consumer spending, as some had predicted or wished.
"A decade ago, the end of fighting didn't deliver much impetus to the domestic economy," Goldstein said. "As was the case then, an end to the fighting may do little to change trends in the U.S. economy."
Although the index was down for a second consecutive month, the Conference Board said the information available so far in April suggests that the declines will not continue. The index fell a revised 0.5 percent in February after a 0.1 percent rise in January.
