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http://www.omniture.com --> Sections Home Page Local News AP News Archives Business Classifieds Event Calendar Forums Life Opinion Obituaries Photo Gallery Readers Photo Gallery Sports Tempo Weather Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Readers' Choice Homelife Magazine Joy Magazine Neighborhoods Employment Guide Oregon Golf Info Oregon Wine Info Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Moving Here Movie Listings TV Listings Volunteer Customer Service Advertise With Us Media Kit Place Classified Ad Contact Us FAQ's Home Delivery Site Map --> Email Story to a Friend October 20, 2006 Indicators suggest economy's slowing The Associated Press WASHINGTON — A modest increase in consumer expectations helped boost a closely watched gauge of future economic activity in September, but not enough to lift the economy out of the doldrums, an industry-backed research group said Thursday. The Conference Board said its Index of Leading Economic Indicators edged up 0.1 percent to 137.7 last month. The index had slipped 0.3 percent in July and 0.2 percent in August. The September increase fell short of analysts' expectations of a 0.3 percent rise. The index is designed to predict economic activity three to six months in the future. The small gain in September fit with economists' expectations that growth will slow in the coming months. "The leading index started to point to slower growth ahead a year ago; that's where we are now," said Ken Goldstein, the Conference Board's labor economist. Advertisement "Growth, but slower growth," he said. "And the latest readings tell us that's where we're going to be for a while," possibly into the first half of 2007. Over the past six months, the index has fallen 0.9 percent. It has declined in five of the last eight months, with areas of weakness including manufacturers' orders for goods and housing permits as the housing market has softened. Americans have been hit with a declining housing market, but also have seen relief in their fuel bills recently as crude-oil prices have fallen from record highs. The government reported Wednesday that consumer prices fell by the largest amount in 10 months in September, easing worries that inflation was about to get out of control. Core inflation, which excludes energy and food, edged up by a moderate 0.2 percent, the third straight month of modest gains following higher readings earlier in the year. Investors believe the inflation indicator will convince the Federal Reserve that its goal of slowing the economy enough to cool inflation pressures is working and officials won't feel the need to boost rates further either at next week's meeting or for the rest of the year. The release of the leading indicators report followed a government report earlier Thursday that the number of newly laid-off workers filing for unemployment benefits dropped sharply last week to the lowest level in nearly three months. The Labor Department said that 299,000 people filed claims for jobless benefits, a decline of 10,000 from the benefit applications filed the previous week. The decline was steeper than analysts had been expecting and provided evidence that employers are still reluctant to lay off employees even though economic growth is slowing. Five of the 10 indicators that comprise the leading index increased in September — consumer expectations, real money supply, stock prices, average weekly initial claims for unemployment insurance and manufacturers' new orders for nondefense capital goods. The negative contributors were building permits, average weekly manufacturing hours, vendor performance, interest rate spread and manufacturers' new orders for consumer goods and materials. On Wall Street, investors pushed the Dow Jones industrial average above 12,000 for the second straight session. But the broader market edged lower after the leading indicators index and data from the Federal Reserve Bank of Philadelphia — whose general economic index shrank for the first time since April 2003 — cast doubt on the economy's strength. The Dow industrials rose 9.45 to 12,002.13 in midafternoon trading, while the Standard & Poor's 500 index shed 0.82 to 1,365.14, and the Nasdaq Stock Market fell 2.65 to 2,334.50. The Conference Board's index of coincident indicators, which measure current economic activity, was unchanged in September at 123.3, while its index of lagging indicators, which measure past performance, rose by 0.2 percent to 124.3. ------ On the Net: Conference Board: http:www.conference-board.org n Would you like to respond to this story? If so Click Here to visit our forums. Advertisement Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback online casinos news Home Security Systems Online Casino Reviews Men's Clothing GMAT Prep Fundraisers UK Homeowner Loans Discount Hotel Reservations Send Flowers Casinos Canada Texas Electric Choice Compare Electric rates in Texas Windermere Van Vleet Trunks, Footlocker Online poker at AbsolutePoker.com