Recession Signals Intensify as Key Economic Gauge Drops for 6th Straight Month

'Economic activity will continue slowing more broadly throughout the US economy': Conference Board

Traders work on the floor of the New York Stock Exchange in New York on Sept. 21, 2022. Michael M. Santiago/Getty Images

The recessionary drums beat louder in August as a key U.S. economic gauge from the Conference Board dropped for the sixth consecutive month, with a “major driver” being the Federal Reserve’s aggressive rate increases.

The Leading Economic Index (LEI), which is a forward-looking gauge that includes 10 individual indicators, fell by 0.3 percent in August, the Conference Board said on Sept. 22. The latest reading brings the total six-month drop to 2.7 percent in the LEI measure, which is designed to predict business cycle shifts, including recessions.