Leading Economic Indicators Drop 0.6%

Further signs of a weakening U.S. economy appeared in the form of a 0.6% drop in the December leading economic indicators – the largest drop in five years – the Associated Press reported Monday.

The private New York-based Conference Board, which compiles the figures, said that the decline does not point to a recession but rather a moderation in economic activity.

However, the movement was double analysts’ expectations of a 0.3% drop.

Seven of the index’s 10 components declined last month: weekly manufacturing hours, consumer expectations, interest rate spread, stock prices, initial claims for unemployment insurance, orders by manufacturers for non-defense capital goods, and material and building permits.