WASHINGTON - The Commerce Department on Wednesday reported asharp drop in its key economic forecasting gauge in February and arise in stocks of unsold goods on wholesalers' shelves, adding tosigns of a slowing economy.
The Index of Leading Indicators, which forecasts economictrends six to nine months ahead, fell 0.2 percent in February,continuing a pattern of weakness since last fall.
It was the index's sharpest monthly decline since a 0.2 percentdrop in July, 1993, and the biggest fall since a 0.4 percent slide inMay, 1993.
The department said, meanwhile, that wholesalers' inventoriesgrew for the eighth month in a row in February, rising 1.2 percent toa seasonally adjusted $241.21 billion after a revised 1.5 percentincrease in January.
The department previously said January inventories rose 0.6percent.
Department officials said the jump in inventories during thefirst two months of 1995 was the largest for any two months Septemberand October, 1987, when they climbed a total 3.0 percent.
Seven of the 11 separate indicators in the leading indexweakened in February, led by lower commodity prices, which fell atthe sharpest rate since November, 1992, according to departmentofficials.
But money supply also was lower, orders for consumer goodsdeclined and consumer expectations fell. The average work week wasshorter, applications for building permits fell and new claims forunemployment insurance pay increased.
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