INDEX OF LEADING ECONOMIC INDICATORS FALLS IN OCTOBER

From The New York Times:

The economy may continue to slow into 2008, according to a measure of its performance over the next three to six months.

The Conference Board said yesterday that its index of leading economic indicators fell 0.5 percent in October after a 0.1 percent September increase that was smaller than previously estimated. A separate report showed consumer confidence weakened this month.

The figures, coming a day after the Federal Reserve lowered its growth forecast for next year, added to concern that the credit collapse is causing consumers and businesses to cut spending.

“There is a definite pattern of weakening here,” said Edward McKelvey, a senior economist at Goldman Sachs in New York, who correctly forecast the decline in the leading index. “It’s all consistent with deceleration in the economy and that includes some deceleration in the labor market.”

Ken Goldstein, a Conference Board economist, said in a statement: “The data are pointing to a continued slow economy. It might even slow a little more after the holidays.”