The Conference Board’s Leading Economic Index (LEI) fell 0.3% in August, following a 0.5% decline in July, marking the sixth consecutive month of decline.
Analysts had expected the index to fall by only 0.1% in August.
The Conference Board said the continued decline in the index pointed to a recession. It was influenced by the accelerated rate hike by the U.S. Federal Reserve (Fed).
The LEI index is an indicator of the U.S. economy. It is calculated from 10 economic data items, including stock prices, new orders in the manufacturing sector, building permits, applications for unemployment benefits, and consumer confidence.