A forward-looking gauge of economic activity fell sharply in December, showing the U.S. economy weakened markedly as the year ended, the Conference Board reported on Monday. The business organization’s leading economic index fell 1% from November, when it dropped by 1.1%. The Fed meets next week to consider raising interest rates, with most experts calling for a quarter point increase following December’s 50-basis-point hike. “Next week we will receive the January ISM update where interest will be high for any indication of increased recession risk. As with other recent reports on the state of the housing market, these are expected to show further declines in activity.
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