U.S. leading economic index falls sharply

NEW YORK, Nov. 20 (UPI) -- The U.S. leading index fell sharply in October with declines noted in stock prices and consumer expectations, The Conference Board said Thursday.

The index of leading economic indicators decreased 0.8 percent after a 0.1 percent rise in September and a 0.9 percent drop in August, the private research group said.

The index, which uses 2004 as a base figure of 100, now stands at 99.6. Weakness in building permits and average claims for unemployment insurance also put downward pressure on the index, which has fallen 2.4 percent in the past six months.

Average manufacturing hours held steady in the month, while new orders for consumer goods and materials increased, The Conference Board said.

Three of four of the components in the coincident index also increased in the month with gains made in industrial production and manufacturing and trade sales.

The coincident index, which measures current business conditions, rose 0.2 percent in the month with nonfarm payrolls a "negative contributor," the report said.

With the gross domestic product also in decline, falling at a 0.3 percent annual rate in the third quarter, the composite index "continues to suggest that the economy ... may contract further in the near term," the report said.