U.S. Economy: Leading Indicators Dropped in November (Bob Willis)

   The Conference Board's leading-indicator measure dropped 0.4 percent, more than forecast, to the lowest level in more than two years, the New York-based research group said today. The Philadelphia Federal Reserve said its factory index declined to minus 5.7, the weakest reading since December 2006.

The deepest housing slump in 16 years is likely to worsen as foreclosures mount and banks restrict lending, economists said. Declining property values, rising energy costs and a softening labor market may also hurt consumer spending, which accounts for more than two-thirds of gross domestic product.

``It's certainly pointing to a slowdown,'' said Roger Kubarych, chief U.S. economist at Unicredit Global Research in New York. ``The fourth quarter is going to be much weaker than what we've been seeing.''

A separate report from the Labor Department showed the number of Americans filing for jobless benefits rose a greater- than-anticipated 12,000 to 346,000 last week. The Commerce Department said the economy expanded 4.9 percent last quarter, unchanged from the previous estimate published last month.

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