The Conference Board, an industry-backed research group, said its index of leading economic indicators fell 0.6 percent to 137.9 in May following a 0.1 percent decline to 138.7 in April.  It was the index’s 3rd decline in six months, and the lowest figure since a reading of 136.9 in October. The drop accompanies gasoline price run-ups, interest rate creep, and a chilling real estate market. 

The labor department has also reported the largest jump in numbers of Americans filing for unemployment in five weeks. and the commerce department has reported another 0.3% slip in orders for durable goods.  Orders for transportation equipment fell by 2.9% reflecting a 17.9% fall in demand for commercial aircraft after a previous 29.7% drop. 

While the economy surged by 5.3% in the 1st quarter of 2006, a downward adjustment to 3% is expected for the remainder of the year, largely reflecting decreased consumer spending as a function of tightening credit.  Consumer spending is responsible for two thirds of economic activity.