A key measure of future US economic activity turned sharply lower in February, reflecting turmoil in the housing and manufacturing sectors, a leading business research group said.
The Conference Board's index of leading economic indicators fell 0.5% following a revised 0.3% decline in January.
However, Conference Board economist Ken Goldstein said the overall economic outlook remains positive despite the weak figure.
The index is meant to gauge economic activity in the coming six to nine months.
'The housing and manufacturing sectors are clearly going through a correction, but the consumer sector appears to be holding up,' he said.
The index was below the average Wall Street forecast of a 0.3% decline and the latest in a string of weaker-than-expected economic reports.
