Leading Economic Indicators Fall 0.2% in August

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he index of U.S. leading economic indicators fell in August for a second straight month as rising gasoline prices lowered consumer confidence even before Hurricane Katrina made landfall, the Conference Board reported Thursday.

The index fell 0.2% following a revised 0.1% decline in July.

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

A drop in consumer confidence and building permits were among the biggest contributors to the decline in August. The back-to-back declines were the first since 2001, the board said.

Record fuel costs curbed the consumer spending that makes up 70% of the U.S. economy.

The LEI was forecast to decline 0.3%, Bloomberg reported.

Confidence is sliding further in the wake of Katrina and with the approach of a second storm, Hurricane Rita, which threatens to shut down refineries in Texas, Bloomberg said.