Leading Economic Indicators Fall 0.2% in April

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he index of leading U.S. economic indicators fell for a fourth straight month in April, in part due to high fuel prices, the Conference Board reported Thursday.

The board said its gauge of the economy’s performance over the next three to six months fell 0.2% to a reading of 114.6, following a 0.6% decline in March that had been the biggest drop since September 2001.

Analysts’ expectations ranged from the 0.2% to a 0.2% gain, news services said following the report's release.

Five of the ten indicators that make up the LEI increased in April, including initial jobless claims, building permits, average weekly manufacturing hours and new manufacturing orders, the Conference Board said.

Negative contributors included consumers’ expectations indices, real money supply, interest rates, stock prices and vendor performance.

The LEI has been increasing since the end of 2001, but the upward trend has been briefly interrupted twice, from May to October 2002 and again from June to October 2004, the board said.

The recent weakness is consistent with the economy continuing to expand in the short term, but at a slower pace, it said.

The coincident index, an index of current economic activity, rose in April and has been rising steadily since April 2003, the board reported.