U.S. leading indicator falls for sixth consecutive month in August




  • In Business
  • 2022-09-22 14:30:20Z
  • By Reuters
 

WASHINGTON (Reuters) - A gauge of future U.S. economic activity declined for a sixth straight month in August, potentially signaling a recession amid large interest rate increases from the Federal Reserve.

The Conference Board said on Thursday its Leading Economic Index fell 0.3% last month after decreasing 0.5% in July. Economists polled by Reuters had forecast the index dipping 0.1%. The index dropped 2.7% between February and August, a reversal from its 1.7% increase over the prior six months.

"Economic activity will continue slowing more broadly throughout the U.S. economy and is likely to contract," said Ataman Ozyildirim, senior economics director at the Conference Board in Washington. "A major driver of this slowdown has been the Fed's rapid tightening of monetary policy to counter inflationary pressures. The Conference Board projects a recession in the coming quarters."

The U.S. central bank delivered a 75-basis-point rate hike on Wednesday, its third straight increase of that magnitude. It signaled more large increases to come this year.

(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)

COMMENTS

More Related News

Stocks won
Stocks won't find a bottom without more clarity on the timing of an economic rebound, and the market will be under pressure for up to 12 months, Morningstar says

Morningstar said the stock market is trading at about a 20% discount to fair value and it appears it has "overcorrected to the downside."

How Will Hurricane Ian Affect the Economy?
How Will Hurricane Ian Affect the Economy?

Hurricane Ian has devastated parts of Florida and the human toll is still rising. The hurricane is also set to be one of the costliest in the country. See...

US Jobs at Cruising Speed May Keep Up Pressure on Fed: Eco Week
US Jobs at Cruising Speed May Keep Up Pressure on Fed: Eco Week

(Bloomberg) -- Friday's US jobs report is projected to show a labor market at cruising speed in September, with more moderate but still-healthy payrolls...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business