An index forecasting economic conditions in the United States continues to decline, signaling recession.

The Conference Board reported its Leading Economic Indicator fell 1 percent to 110.5 in December. Separate measures of current and past conditions increased, however.

“There was widespread weakness among leading indicators in December, indicating deteriorating conditions for labor markets, manufacturing, housing construction and financial markets in the months ahead,” said Ataman Ozyildirim, the senior director of economics at the Conference Board.

The Coincident Economic Index, a measure of current conditions, hasn’t declined to the same extent as the Leading Economic Index because employment and personal income remain robust, Ozyildirim said. But industrial production fell for a third straight month.

“Overall economic activity is likely to turn negative in the coming quarters before picking up again in the final quarter of 2023,” he said.

The Leading Economic Index retreated 4.2 percent over the past six months, a steeper decline than the 1.9 percent decrease in the previous six-month period.

For December, eight of 10 components of the index declined, including average weekly manufacturing hours, building permits, consumer expectations, interest rate spread, leading credit and new orders indexes and stock prices. An increase in average weekly claims for unemployment benefits also pulled down the index. New orders for capital and consumer goods increased.

The Coincident Economic Index edged up a tenth of a percent to 109.6. The index rose 1.4 percent over the past six months.

For December, three of four components of the index advanced — nonfarm payrolls, personal income and sales. Industrial production declined.

The Lagging Economic Index, a measure of past performance, increased three-tenths of a percent to 117.6. The index rose 2.3 percent over the previous six months.

For December, three of seven components of the index advanced, including the average prime rate charged by banks and inventories. A decrease in the average duration of unemployment also bolstered the index. The change in labor costs and services pulled down the index, as did commercial and industrial financing. Consumer credit was unchanged.