U.S. Economic Gauge Signals Weakness

[sr_pacifica]

By Glenn Somerville
WASHINGTON (Reuters) - A key gauge of future economic activity weakened for a third straight month in August as costlier oil spread worry among consumers and businesses, a report from a business research group showed on Thursday .

The Index of Leading Indicators, issued by the Conference Board, fell 0.3 percent in Aug to 115.7 after a matching 0.3 percent decline in July and a 0.1 percent drop in June, raising questions about the durability of the economy's expansion.

The index measures a basket of 10 indicators of performance from consumer confidence to applications for new building permits, and is intended to signal the economy's direction three to six months down the road.

Its steady decline contrasts with a view expressed on Tuesday by Federal Reserve policymakers, who voted to raise U.S. interest rates for a third time in three months, that economic output has "regained some traction" since summer.

"We doubt this signals an imminent further sharp downturn in growth but the data make uncomfortable viewing and are not consistent with the Fed's view that the economy is regaining traction," said economist Ian Shepherdson of High Frequency Economics Ltd. in Valhalla, N.Y.



More at
http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=6319934

[joefree1]

1. Oh sh*t!

But I though unloading American jobs "off shore" would make us all rich.

[Nimrod]

5. Judging from "history"

It will take until Kerry is elected for *'s economic reforms to show the stellar results. Likewise, when Jeb steals his election, Kerry's lousy economics will suddenly take effect and make us all poor again.

At least that's what THEY told me...

[rooboy]

2. Well, bugger me. Ayn Greenspan was talking crap. Big surprise. n/t

[Eye and Monkey]

3. Gauge must be broken. EBay.Turn-around. Growth. Misunderestimated.

Success in Iraq. Swift boats. Saddam hates. Spin, Karl, SPPPPPPPPPIIIINNNNNNNNNNN.

[ozymandius]

4. That's not what Greenspan says!!

Or maybe he was practicing the art of shill for Bush - that corrupt, incompetent sonofabitch.

[gristy]

6. In a meeting at work today (I work for a large US-based high-tech

manufacturer) and the speaker said the same thing. "Soft" was the word I think he used.

[whistle]

7. Not a sharp turn, just a slowdown as the military/industrial complex...

...takes a short pause during elections to try to get their boy Bush and party (repukes) back in the drivers seat. The plan is to step up the war after November 2 and get this economy jumping once again. Oh, in case anyone thinks that means more jobs, forget that. The military economy can grow at 8% to 10% annual levels while the unemployed still go searching for jobs. That's just the way it is. As for the very rich who are in charge, they are doing great!

[bagnana]

8. It only makes sense

I'm no economist. But I have read over and over that the U.S. economy is overwhelmingly driven by consumer spending. But if jobs go overseas, interest rates inch up, home prices become stagnant, and the refi-boom goes bust, consumers won't have money to spend and the economy wilts. It seems to me that companies that ship all of their jobs overseas are very shortsighted. They may make improve their bottom line, but in the end we all lose when the jobless consumers stop buying their cheap products.