Conference Board sees slowing economy

The Conference Board's index of leading indicators, a gauge of future business activity, fell 0.5% in October, in a sign that the economy will continue to slow down. Seven of the 10 indicators were in negative territory, led by building permits and initial claims for unemployment insurance. The other three leading economic indicators rose last month, with the largest positive contribution from stock prices. Real money supply and manufacturers' new orders for consumer goods and materials were also positive. The Conference Board also revised its September index down 0.1% from a prior estimate of 0.3%. The data was released one day after the Federal Reserve revised lower its forecast for U.S. economic growth to slow in the coming quarters (InvestmentNews, Nov. 20) .