New York, August 19--A closely watched measure of future economic activity fell in July for the second consecutive month, reinforcing evidence that the nation's financial recovery is slackening.
The Conference Board said Thursday its Composite Index of Leading Economic Indicators dropped by 0.3 percent in July to 116.0, following a revised decline of 0.1 percent in June. Last month was the first time in more than a year that the index had lost ground.
"The latest decline in the Leading Index reflects a loss of forward momentum," said Ken Goldstein, economist for the Conference Board. "There are growing concerns about the high cost of gasoline and milk, as well as worries about where economic growth will come from now that tax refunds have been spent and short-term interest rates are rising."
The index is closely followed because it is designed to forecast the economy's health over the coming three to six months.
