Economic index drops

A key indicator of where economic activity in the United States is heading fell in March for a second straight month.

The New York-based Conference Board said its Index of Leading Economic Indicators fell by 0.2 percent last month to 110.6, pushed down by worries over higher oil prices, the war and potential terrorist attacks. The result was in line with analysts’ expectations.

But the Conference Board said the bigger threat to economic stimulation comes from consumers’ lower expectations, raising “the specter of a falloff in consumption growth.”

“This is significant because without much investment or export growth, only consumption has been fueling the economy,” said Conference Board economist Ken Goldstein.

Kansas University: Executive to speak on business ethics

Former Johnson & Johnson executive Terence Downer will discuss how companies can be ethically driven in the current business environment during a speech tonight.

Downer, who led Johnson & Johnson’s sales force for 31 years, will give his address at 7 p.m. today at the Kansas Union Ballroom. The speech is part of the Walter S. Sutton Lecture Series offered by the International Center for Ethics in Business at the Kansas University School of Business.

The event is open to the public.

Federal Reserve: Greenspan surgery set

Federal Reserve Chairman Alan Greenspan will undergo surgery today for an enlarged prostate, the Fed said Monday in an announcement that also said tests last week showed no cancer.

Greenspan is often spoken of as the second-most-powerful man in Washington because of the impact his words and the Federal Reserve’s actions can have on interest rates and the economy in general.

Greenspan, 77, was in his office on Monday and expects to be back at work later this week.

Aviation: Southwest Airlines continues profit streak

Low-fare carrier Southwest Airlines Co. reported its 48th consecutive profitable quarter Monday, even as its larger rivals racked up heavy losses.

Southwest’s first-quarter earnings of $24 million, or 3 cents per share, were an increase of 14.3 percent over the year-ago period, the Dallas-based carrier said. In the first three months of 2002, Southwest’s $21.4 million in net income was its lowest quarterly profit since fourth quarter 1994.

Revenue rose 7.5 percent to $1.35 billion from $1.26 billion.

Investigation: HealthSouth probe nets new guilty plea

HealthSouth Corp. treasurer Malcolm “Tadd” McVay has agreed to plead guilty to conspiracy and fraud charges in the growing accounting scandal at the rehabilitation giant, federal prosecutors said Monday.

McVay is the 10th HealthSouth executive to reach a plea deal with the government and the fourth of the company’s five former CFOs to be accused in the scheme. McVay, 41, is cooperating with authorities, prosecutors said.

While the investigation is only a month old, U.S. Atty. Alice Martin said it is moving swiftly in part because of the assistance of so many of the corporation’s top financial executives.