U.S. Economy: Leading Index Shows Extended Recession Bloomberg.com
By Bob WillisApril 20 (Bloomberg) — The index of U.S. leading economic indicators fell more than forecast in March, signaling what may be the longest recession in the postwar era will extend into the second half of the year.
The Conference Board’s gauge, which points to the direction of the economy over the next three to six months, fell 0.3 percent after a 0.2 percent drop in February. The gauge hasn’t risen since June.
Rising unemployment and tight credit mean recent gains in consumer spending, the biggest part of the economy, will probably not be sustained. Stocks dropped as a report by Bank of America Corp. raised concern Americans will keep falling behind on loan payments.
“There’s no reason to think that this recession is going to end any time this spring or this summer,” Ken Goldstein, an economist at the New York-based Conference Board, said in an interview with Bloomberg Television. While “there is at least a little bit of a hint that the intensity may begin to back off over the next few months” the recession is “going to be a long slog,” he said.
read full article here… U.S. Economy: Leading Index Shows Extended Recession (Update1) – Bloomberg.com.
