Leading Economic Indicators Decline 0.3% in January

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he Conference Board said Thursday its index of leading economic indicators fell 0.3% in January, the first drop in three months, as consumer confidence lagged and stock prices slumped.

The LEI is closely watched by trucking companies because it forecasts business activity for the next three to six months.

“The spike in energy prices and the lower dollar took some steam out of the economy. But the larger concern remains cautious attitudes. Business concerns about the direction of cash flow could lead to cautious decisions about hiring and rebuilding inventory,” Conference Board Economist Ken Goldstein said in a statement.

The drop adds to evidence the economic expansion is cooling, Bloomberg News reported. During the six-month span through January, the leading index decreased 0.3%, the board said.

The coincident index, a gauge of current economic activity, held steady in January. The index tracks payrolls, incomes, sales and production.

The index of lagging indicators, an after-the-fact measure, increased 0.3% in January and decreasing 0.7% the month before.