Index of leading economic indicators drops

? A key gauge of U.S. economic activity fell for the third straight month in August, declining more than experts had predicted.

The New York-based Conference Board on Monday reported its Index of Leading Economic Indicators dropped 0.2 percent to 111.8, after falling a revised 0.1 percent in July. Analysts had expected an August decline of 0.1 percent. The index measures where the overall U.S. economy is headed in the next three to six months. It stood at 100 in 1996, its base year.

Seven of 10 indicators that comprise the index, including manufacturers new orders for non-defense capital goods, building permits and the index of consumer expectations, declined in August, the Conference Board said.

Economist Ken Goldstein said the data showed the weak recovery could stall.

There is now the threat of a slowdown, Goldstein added, because unlike in June or July, the latest decline was widely diffused only one of the 10 components had a significant positive contribution.