The US index of leading economic indicators fell 0.2pc in September after four months of gains, the Conference Board said today. A large contraction in the money supply led the decline. Four of the 10 indicators increased in September, including the factory workweek, stock prices and new orders for capital and consumer goods. Aside from money supply, other negative contributors were interest rates, vendor performance, consumer expectations, building permits and the average number of initial jobless claims. Over the past six months, the index is up 2.3pc, with 85pc of the indicators showing improvement over that time. The index rose 0.4pc in August.
Economists at the Conference Board said the September reading didn't mean the US recovery was off track. However, "a continuation of stronger economic growth would be called into doubt if the leading index does not turn up again," said Ken Goldstein, an economist at the board. The coincident index rose 0.1pc, while the lagging index fell 0.5pc. Wall Street economists expected the index to be unchanged in September.//www.fxcentre.com