Index suggests economy weakening

[Mugu]

By EILEEN ALT POWELL, AP Business Writer

NEW YORK - A gauge of future economic activity dropped in February for the fifth consecutive month, suggesting that the weakening U.S economy could, indeed, be slipping into recession.

The Conference Board said Thursday that its index of leading economic indicators fell 0.3 percent last month to 135.0 after dipping a revised 0.4 percent in January. The February reading was in line with the 0.3 percent decline expected by analysts surveyed by Thomson Financial/IFR.

The index is designed to forecast where the nation's economy is headed in the next three to six months.

Many economists believe rising gas prices, falling home prices and tightening credit markets have begun squeezing consumers and businesses, forcing them to cut spending. As a result, the U.S. economy may have stopped growing in the current quarter and could continue faltering in the second quarter. That would meet a technical definition of a recession — two consecutive quarters of negative growth.


To read complete article:
http://news.yahoo.com/s/ap/20080320/ap_on_bi_ge/leading_indicators

[ProfessorGAC]

1. Duh!

More conventionalist nonsense. This economy has been operating as a recessarionary economy for the last 27 quarters. We were told it was all hunkydory, when the traditionalists would not have allowed it to be called a boom. Now, the traditionalists get to define the terms again.

How convenient.
The Professor

[Warpy]

2. Wow! News flash! Run for your lives!

Seriously, I'd be ashamed to put out an article like this one. Where has this fucking dolt been hiding for the past 7 years of flat wages, negative savings and increasing debt load?

I guess while fat cats are still seeing growth in paper profits, all's right with his little world.

Idiot.

[Zynx]

3. No shit. n/t