Index of Leading Economic Indicators Falls 0.3% in July

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he Conference Board said Thursday its index of leading U.S. economic indicators fell 0.3% in July, the second straight monthly decline.

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

July's decline was the largest since February 2003 and followed a revised 0.1% drop in June. The index last fell in consecutive months in early 2003.

"The data for June and July reflect a slowing down of what had been a strong pace of economic activity through May," said Conference Board Economist Ken Goldstein. "There are growing concerns about the high cost of gasoline and milk, as well as worries about where economic growth will come from now that tax refunds have been spent and short-term interest rates are rising."

The board said the index of coincident indicators, a gauge of current economic conditions, rose 0.1%. The index tracks payrolls, incomes, sales and production.

The index of lagging indicators increased 0.5% in July after no change.

ix of the 10 indicators that the Conference Board tracks to derive the index contributed to the decline in July including lower stock prices, more jobless claims and fewer capital goods orders.