Conference Board Organization

new york -- A closely watched gauge of future economic activity edged up in July, reversing the previous month's decline. The recent erratic pattern reflects uncertainty in a U.S. economy roiled by a credit crunch. The Conference Board said Monday that its index of leading economic indicators rose 0.4% in July, as analysts had expected. The index fell 0.3% in June, after rising 0.2% in May. The report is designed to suggest the level of economic activity over the next three to six months.

Chief executives were more pessimistic over the U.S. economy's prospects in the third quarter, according to a private survey. The Conference Board's index of CEO confidence fell to 44 -- a second straight decline and the lowest level since the third quarter of 2006 -- from 45 in the second quarter, the New York research group said. Readings below 50 reflect more negative than positive responses.

An index of leading U.S. economic indicators rose for a second month in October, pointing to a gradual strengthening of the expansion early next year. The Conference Board's measure increased 0.2% after a revised 0.4% September gain that was bigger than initially reported, the New York-based group said Monday. The index points to the direction of the economy over the next three to six months.