15-February-2008

NEW YORK, Feb 15 (Reuters) – A weekly gauge of future U.S. economic growth edged down in the latest week, while its annualized growth rate reached recession-area readings not seen since November 2001, a research group said on Friday.

The Economic Cycle Research Institute, a New York-based independent forecasting group, said its Weekly Leading Index inched down to 133.4 in the week of Feb. 8 from 133.5 in the prior week.

The WLI fell due to higher interest rates, lower stock prices and weak housing, with the fall partly offset by lower jobless claims, said Lakshman Achuthan, managing director at ECRI.

The index’s annualized growth rate skidded to minus 9.1 percent from minus 7.9 percent, reaching its lowest reading since the week of Nov. 9, 2001, when it was negative 9.2 percent.

“WLI growth is at recessionary readings, consistent with ongoing contractions in the financial and construction sectors,” said Achuthan. “However, ECRI’s leading indexes for the manufacturing and non-financial services sectors have yet to confirm recessionary conditions.”