A key US economic gauge fell last month on concern over the impact a prolonged war in Iraq would have on oil prices and the economic recovery. The New York-based Conference Board said its Index of Leading Indicators fell 0.2pc in March after a 0.5pc drop the previous month. The drop was worse than the 0.1pc decline that economists had forecast. The Conference Board said there was little chance of the index improving over the coming months but also noted that it would probably not decline further either.
"The leading index declined for a second consecutive month in March, but the information available so far in April suggests that these declines will not continue," the report said. The Board added that it did not expect to see any decline in unemployment this year. "The leading index has been fluctuating around a flat trend since December 2001. [This] suggests that US real GDP growth will stay in the 2-3pc range for now," it said. "As long as economic growth is constrained in this range, the labour market cannot improve." //www.fxcentre.com