(Bloomberg) — The index of U.S. leading economic indicators decreased in January for a second month, reflecting a slump in stock prices as well as a pickup in jobless claims that has since reversed.
The Conference Board’s measure of the economic outlook for the next three to six months fell 0.2 percent in January after sliding a revised 0.3 percent the month before, the New York- based group said Thursday. The January decrease matched the median forecast in a Bloomberg survey of economists.
Four of the 10 indicators of the composite measure decreased, led by the rout in stocks and more applications for jobless benefits. A drop in factory orders and fewer building permits also weighed on the index.
“Despite back-to-back monthly declines, the index doesn’t signal a significant increase in the risk of recession, and it’s six-month growth rate remains consistent with a modest economic expansion through early 2016,” Ataman Ozyildirim, director of business cycles and growth research at the Conference Board, said in a statement.
A separate report Thursday showed initial jobless claims unexpectedly fell last week to a three-month low. The number of applications dropped by 7,000 to 262,000 in the week ended Feb. 13, the lowest since Nov. 21, according to the Labor Department.
Last week coincided with the period that the government surveys businesses and households to calculate payrolls and the jobless rate for February.
Stocks have also rebounded this week.