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BloombergBy Shobhana Chandra
Dec. 18 (Bloomberg) -- The index of leading U.S. economic indicators fell in November for the fifth time in seven months, reflecting the worsening outlook that led the Federal Reserve to slash interest rates and pledge unlimited purchases of securities.
The Conference Board’s gauge of the direction of the economy over the next three to six months dropped 0.4 percent, as forecast, after falling 0.9 percent in October, the New York- based group said today. A reports showed first-time jobless claims held close to a 26-year high and manufacturing in the Philadelphia region contracted for the 11th time this year.
The leading index underscores economists’ projection that the U.S. recession will be the longest in the postwar era as banks restrict credit, home and stock values plunge and job losses mount. President-elect Barack Obama has proposed the biggest public-works spending package since the 1950s as part of the government’s effort to limit the damage and revive growth.
“There is no end to the recession in sight,” said Stuart Hoffman, chief economist at PNC Financial Services Group Inc. in Pittsburgh, who correctly forecast the decline in the leading index. “The economy is likely to continue to fall hard.”
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