LEI Fell in March, but Appears Stronger in April

The New York-based Conference Board said Monday its index of leading economic indicators declined in March, but said "the information available so far in April suggests that these declines will not continue."

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

For March, the index declined by 0.2% to 110.6, pushed down by worries over higher oil prices, the war and potential terrorist attacks, the board said.

The index fell a revised 0.5% in February after a 0.1% rise in January.

Although the board said April data is improving, Conference Board economist Ken Goldstein said pitfalls remain.

"The combination of the slowing in (consumer) consumption growth and the delayed start to more investment has effectively extended the soft spot that the economy has been in," Goldstein said.

Five of the 10 indicators that make up the leading index decreased in March: building permits, average weekly initial claims for unemployment insurance, interest rate spread, real money supply and index of consumer expectations.

The positive contributors were vendor performance, stock prices, new orders for nondefense capital goods and new orders for consumer goods and materials.

Average weekly manufacturing hours held steady in March.

The board said the flatness in the leading index suggests that U.S. growth domestic product growth will stay in the 2% to 3% range for now.

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