Indicators decline again

NEW YORK — A closely watched gauge of future business activity fell in August for a third consecutive month, evidence that companies and consumers continue to navigate an uncertain economic climate. Meanwhile, more Americans filed new claims for unemployment benefits last week following the hurricanes that hit Florida.

The Conference Board said Thursday its Composite Index of Leading Economic Indicators fell 0.3 percent in August to 115.7, following a decline of 0.3 percent in July.

The August reading was the third month of decline in the index, after more than a year in which it gained steady ground. The drop last month was larger than the 0.2 percent decrease forecast by analysts.

Economists said the August report confirms a slackening in the recovery dating back to the late spring. Three consecutive months of a decline in the index generally are considered to mean the economy is weakening.

“Consumers worry about their wages and salaries which could limit spending. Businesses worry about their ability to raise prices and to cover rising costs,” said Ken Goldstein, an economist for the New York-based Conference Board, a private research group.

While the new reading is cause for concern, it comes as other evidence shows the economy is growing at a modest pace, others said.

The index is closely followed because it is designed to forecast the economy’s health over the coming three to six months.

Federal Reserve policymakers cited an overall steadying in the economy when they raised a key interest rate earlier this week, the third such hike this year. The Fed’s campaign of gradual increases reflects its efforts to navigate through a soft patch in the business cycle and return the cost of borrowing to historical norms.