Measure of Future U.S. Growth Dips 0.2 Percent

WASHINGTON (AP) -- A measure of the U.S. economy designed to signal future activity fell in November, suggesting that growth could remain weak in the early part of next year.

The Conference Board said Thursday that its index of leading indicators dropped 0.2 percent in November, compared with October, when the index had risen 0.3 percent. It was the first decline in the index since a 0.4 percent fall in August. The index is intended to anticipate economic conditions three to six months out.

Conference Board economist Ken Goldstein says the slight decline in the index November reflects an economy that remains weak as it faces a looming fiscal cliff.

The fiscal cliff refers to sharp increases in taxes and cuts in federal spending that could occur in January if no budget deal is reached.

The November decline marked the fourth time the index has fallen this year. The major components of the index that contributed to the weakness were a rise in applications for unemployment benefits, a fall in stock prices and drop in new orders for manufactured goods.

The overall economy grew at an annual rate of 3.1 percent in the July September quarter, the Commerce Department reported Thursday. But many private economists believe growth has slowed in the current October-December quarter to around 1.5 percent. They believe activity will remain below 2 percent in the first three months of next year but think that growth could strengthen in future quarters as long as Congress and the Obama administration are able to reach a budget deal that averts the pending tax increases and spending cuts.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2164568, ~/Articles/ArticleHandler.aspx, 9/30/2014 6:51:29 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 17,071.22 -41.93 -0.25%
S&P 500 1,977.80 -5.05 -0.25%
NASD 4,505.85 -6.34 -0.14%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes


Advertisement