Economic activity ticks down in December

NEW YORK (CNNMoney.com) -- A key measure of economic activity dropped for the third straight month and declined slightly more than expected in December.

The Conference Board said Friday that its index of leading economic indicators fell 0.2 percent last month. Economists were expecting a 0.1 percent drop.

The December measure indicates some easing of economic pressures, since the index fell 0.4 percent in November and 0.5 percent in October.

"I think the message of the LIE report is slow growth but not recession," said Michael Darda, chief economist at MKM Partners.

Wall Street is not likely to be surprised by that message, Darda added. "The equity market has already priced that message in."

Investors watch the index for signs of economic activity. It is a compilation of data on new orders, jobless claims, money supply, average workweek, building permits and stock prices, among others.

Wall Street has struggled this year with pervasive fears that an economic recession is pending or has already struck. The Dow Jones industrial average lost 307 points Thursday, leaving the blue-chip barometer at a 10-month low.

Major indexes opened higher Friday amid signs that Washington is close to a decision on how to stimulate the economy.