A measure of future economic growth in the United States slid to a seven-year low and its annualised growth rate dived to its lowest reading on record in nearly 60 years of data, a research group said on Friday. The Economic Cycle Research Institute, a New York-based independent forecasting group, said its Weekly Leading Index (WLI) fell to 112.9 in the week to October 24 from 114.0 in the previous period.
It now stands at its lowest level since October 26, 2001, when it was 112.7. The index's annualised growth rate dipped to negative 21.9 percent from minus 19.3 percent, its lowest going back to January 1949, when the index was first published, according to ECRI data.
"With WLI growth plummeting to the lowest reading registered in its six-decade history, the outlook for the economy has darkened dramatically." said Lakshman Achuthan, managing director at ECRI. The index slide was due to a widespread decline in the components, the key exception being a measure of money supply, he said.