By Xavier Fontdegloria

An economic index that measures U.S. business cycles declined in April for the second time this year, pointing to moderating economic growth in the short-term.

The Leading Economic Index compiled by the Conference Board fell 0.3% to 119.2 in April from a revised 0.1% increase in March, the private research group said Thursday.

Economists polled by The Wall Street Journal expected the index to be unchanged from the previous month.

However, the index is up 0.9% over the last six months. "The U.S. LEI was essentially flat in recent months which is in line with a moderate growth outlook in the near-term," said Ataman Ozyildirim, senior director of economic research at the Conference Board.

The Conference Board Leading Economic Index is a predictive variable that anticipates turning points in the business cycle by around seven months. It is based on ten components, among them initial claims for unemployment insurance, manufacturers' new orders, building permits of new private housing units, stock prices and consumers expectations. It is intended to signal swings in the business cycle and to smooth out some of the volatility of individual indicators.

In April, the decline was led by weak consumer expectations and a drop in residential building permits, the report said.

"A range of downside risks--including inflation, rising interest rates, supply chain disruptions, and pandemic-related shutdowns, particularly in China--continue to weigh on the outlook," Mr. Ozyildirim said.

The Conference Board expects the U.S. economy to grow 2.3% this year.

The Coincident Economic Index, a measure of current economic activity, rose 0.4% in April to 108.8. The Lagging Economic Index also increased by 0.4%, to 111.6, the Conference Board said.

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

(END) Dow Jones Newswires

May 19, 2022 10:28 ET (14:28 GMT)