Leading Indicators Decline in August

Washington, DC, September 20, 2007--The Conference Board said that its index of leading economic indicators dropped substantially in August, which could portend a slowdown in economic growth.

The index dropped .6% after a rise of .7% in July. The gyrations likely reflect the uncertainty about how the credit crisis will affect the overall economy.

The report, which tracks ten indicators, is designed to predict economic activity over the next three to six months. The only indicator to increase in the month was real money supply, the report said.

The major drags on the index were consumer expectations, initial unemployment claims, and stock prices.