U.S. economy to contract in coming month

May 17, 2007
U.S. economy to contract in coming month

NEW YORK (AP) - A gauge of future economic activity showed the U.S. economy will slow in coming months, reversing recent gains and suggesting higher gas prices and a sluggish construction industry are beginning to take their toll.

The Conference Board said Thursday its index of leading economic indicators dropped 0.5 per cent, higher than the 0.1 decline analysts were expecting. The reading is designed to forecast economic activity over the next three to six months.