A KEY gauge of US economic activity strengthened for a fifth consecutive month in June the Conference Board said yesterday adding to signs of steady, if slower, expansion ahead.

The Index of Leading Indicators, which is supposed to forecast economic trends six to nine months ahead, rose by 0.5 per cent in June after a revised 0.2 per cent increase in May.

Despite the overall rise in the index, individual components showed waning factory orders and backlogs that may foreshadow a slower economic pace in the final six months of the year.

Higher prices for commodities helped drive the monthly index up, but orders for durable goods like new cars fell from May, as did demand for plant and equipment used to expand operations.

Analysts emphasised that the economy was at no risk of a precipitous slowdown.