Still, results from the Conference Board's monthly forecast of US economic activity were slightly better than expected.

Economists surveyed by Thomson Reuters expected the index to drop 0.6 per cent last month.

The Conference Board also lowered estimates for the previous two months, saying leading indicators rose just 0.1 per cent in January and slipped 0.1 per cent in December.

The earlier estimates were for gains of 0.4 per cent in January, and 0.2 per cent in December.

The index is designed to forecast economic activity in the next three to six months, based on 10 components that include stock prices and building permits. -- AP