The composite index of Leading Economic Indicators fell 0.3% in June following a revised 0.4% gain in May, originally reported as a 0.3% increase, the Conference Board reported Thursday.
The coincident index grew 0.2% in June after an unrevised 0.2% gain in May, while the lagging index rose 0.2% after an unrevised 0.3% climb in May.
The LEI stands at 95.6, the coincident index is at 104.5 and the lagging index is at 115.5 The LEI has a baseline of 100, which reflects the level in 2004.
Economists polled by Thomson Reuters predicted LEI would be down 0.1% in the month.
"The U.S. economy is growing very slowly," said the Conference Board economist Ken Goldstein. "The CEI basically reflects this steady but soft pace of overall economic activity. The LEI is pointing to no strengthening over the next few months, as the economy continues to sail through strong headwinds domestically and internationally."
"The U.S. LEI declined in two of the last six months, and its six-month growth rate has eased in the last three months," said the Conference Board Economist Ataman Ozyildirim. "The strengths among the leading indicators have become less widespread as consumer expectations and manufacturing new orders offset gains in the financial, labor and construction-related components. Meanwhile, the coincident economic index, a measure of current economic conditions, has risen slowly but steadily in the last three months."
Four of the 10 indicators that comprise the LEI rose in June: interest rate spread, average weekly manufacturing hours, Leading Credit Index (inverted), and manufacturers' new orders for consumer goods and materials. ISM new orders index, average consumer expectations for business conditions, building permits, average weekly initial claims for unemployment insurance (inverted), stock prices and manufacturers' new orders for nondefense capital goods excluding aircraft were negative.
The coincident index saw manufacturing and trade sales, personal income less transfer payments, industrial production, and employees on nonagricultural payrolls rise in the month.
The lagging index saw positives from change in index of labor cost per unit of output, manufacturing, and ratio of consumer installment credit outstanding to personal income. Commercial and industrial loans outstanding, and average duration of unemployment (inverted) were negative. The ratio of manufacturing and trade inventories to sales, average prime rate charged by banks, and change in CPI for services were flat in the month.