Numbers: The US leading economic index fell 1% in December and sent even stronger signals that a recession is likely soon.
Economists polled by the Wall Street Journal had forecast a decline of 0.7%.
The LEI is a gauge of 10 indicators designed to show whether the economy is doing better or worse. The report is published by the nonprofit Conference Board.
The index also fell 1.1% in November.
Big picture: The economy slowed in response to interest rate hikes orchestrated by the Federal Reserve to control inflation. Yet rising borrowing costs also threaten to plunge the United States into a second four-year recession.
Key details: The leading index fell in December due to a slowdown in the labor market, a slowdown in manufacturing and a drop in home construction. Wall Street also issued negative signals last month.
A measure of current economic conditions rose just 0.1% in December.
The so-called lagging index – a look in the rearview mirror – increased by 0.3%.
Look forward: “The US LEI fell sharply again in December – continuing to signal a recession for the US economy in the near term,” said Ataman Ozyildirim, senior director of economic research at the board.
Market reaction: The Dow Jones Industrial Average
and S&P 500
increased in Monday transactions.