To: Poet who wrote (1022 ) 5/31/2000 12:21:00 PM From: TradeOfTheDay Respond to of 10876
(COMTEX) A: Leading indicators slip A: Leading indicators slip NEW YORK, May 31 (UPI) -- The Conference Board said Wednesday its key measure of future economic activity slipped 0.1 percent in April after rising 0.1 percent in March. Most economists on Wall Street were expecting the board's measure of the leading economic indicators to rise 0.1 percent during the month. The board said the decline in the index, which is a key U.S. economic forecasting gauge designed to forecast trends in the economy six to nine months in advance, was driven by manufacturers' new orders for consumer goods and materials and the interest-rate spread. "The biggest risk to the ongoing expansion, which in June will be in its record 111th month, remains the interest-rate increases at hand and the prospect of still more action by the Federal Reserve Board," said Conference Board economist Ken Goldstein. "The data suggests that some sectors may be beginning to respond to Fed tightening," Goldstein added. The Conference Board also said its composite index of coincident indicators, designed to reflect current economic activity, rose 0.5 percent to 115.2 in April, after climbing a 0.4 percent in March to 114.6. The board said gains in employment, income, and industrial production continue to drive the coincident index ahead. The board also reported the index of lagging indicators, designed to show past economic activity, rose 0.6 percent in April to 104.6, after falling a revised 0.1 percent in March to 104.0. The board said five of the 10 indicators that make up the leading index rose in April. The positive contributors to the index, from largest to smallest, were money supply (M2), average weekly manufacturing hours, vendor performance, stock prices, and consumer expectations. The largest negative contributors to the leading index in April were manufacturers' new orders for consumer goods and materials and the interest rate spread.___________