The private research group said its index of Leading Economic Indicators fell 0.1 per cent in January. Most economists had expected the economic barometer to post such a decline.

'The Leading Index declined for the fourth straight month,' said Ken Goldstein, a labor economist at the Conference Board.

'The change in the Leading Index, including the duration, intensity, and dispersion across markets, suggests weak growth going forward,' he said.

The Conference Board cited tumbling stock prices and declining demand for home-building permits as the main reasons for the index's latest drop.

US economic growth slowed dramatically during the fourth quarter of 2007 amid a worsening housing market slump and as a credit crunch swept the financial markets.

The Federal Reserve has slashed borrowing costs since September as it battles to shore up economic momentum, but some economists believe the US economy is likely to slide into a recession.

Goldstein said the Conference Board's latest research suggests the economy is not in recession, but is also not firing on all cylinders. -- AFP