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NEW YORK — A key gauge of future economic activity fell 0.2 percent in October, suggesting further slowing for the U.S. economy in the new year. 

The Conference Board said Monday that its Composite Index of Leading Economic Indicators declined to 105.5 in October after registering no change in September and dropping 0.1 percent in August. 

The index is watched closely because it gives an indication of where the overall U.S. economy is headed in the next three to six months. 

A related index, which measures current or coincident economic activity, fell 0.1 percent in October — the first decline since a 0.1 percent drop in September 1999, the New York-based business group said. 

Also Monday, the Commerce Department reported that sales of new homes moderated in October after surging the month before, providing further evidence the economy is slowing. Americans bought new single-family homes at a seasonally adjusted annual rate of 928,000 in October, a 2.6 percent drop from September. Some analysts were expecting a 4.9 percent decline. 

The reports prompted a retreat to blue chips on Wall Street, with technology stocks falling. The Dow Jones industrial average was up 108.44 at 10,481.98 early Monday afternoon. Broader indicators were mixed. 

Ken Goldstein, the Conference Board’s chief economist, noted that since the start of 2000, the leading indicators have declined in five months and have been been flat in four. 

“To be sure, this series has been signaling and continues to point toward a cooling of still-strong economic conditions,” Goldstein said. 

Economic growth slowed markedly in the July-September quarter, with the gross domestic product expanding at an annual rate of 2.4 percent, down from 5.6 percent in the spring quarter. GDP is a measure of the nation’s total output of goods and services. 

The slowing came after the Federal Reserve raised interest rates six times between June 1999 and May 2000 to try to keep the economy from overheating and sparking inflation. 

The Fed has aimed for a “soft landing” for the economy – slowing growth but not sending the economy into a recession. 

Bryan Jordan, an analyst at Banc One Investment Advisors in Columbus, Ohio, said the economy appears to be on target for a soft landing. 

“There’s no doubt the economy is cooling off, and these numbers are more evidence of that,” he said.  

“We don’t buy into that hard landing story. There’s still a lot of inherent strength in the economy.” 

The Conference Board report said that six of the 10 indicators that make up the leading index declined in October: manufacturers’ new orders for consumer goods, stock prices, manufacturers’ new orders for nondefense capital goods, consumer expectations, initial claims for unemployment insurance and interest rates. 

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On the Net: 

www.conference-board.org 

www.census.gov