July 20, 2007	Friday	Rajab 04, 1428

WASHINGTON, July 19: A broad measure of future US economic activity posted a worse than expected decline in June amid a widespread downturn in the US housing market, the Conference Board said on Thursday.

The business research group, said its index of leading economic indicators fell 0.3 per cent in June. Most economists had expected the widely-tracked gauge to decline a more modest 0.1 per cent.Conference Board economist Ken Goldstein said the latest readings suggest the world’s biggest economy could soften during the second half of the year despite hopes of an economic pickup.

“While the economy has weathered the negative impact of the housing slump and the increases in gas and grocery prices, these negative factors continue to hold down growth in consumer and investment activity,” Goldstein said.

The US economy grew at a sluggish 0.7 per cent pace in the first quarter of 2007, but many economists expect growth to have improved in the second quarter.

However, Federal Reserve chairman Ben Bernanke warned on Wednesday that the year-long housing downturn could persist into next year.

The business research group revised its estimates for the prior month to reflect a 0.2 per cent slide in the index in May, reversing an original estimate of a 0.3 per cent gain.

The Conference Board said its “coincident” index of current activity increased 0.2pc in June, after a 0.1pc rise in May.—AFP