NEW YORK – A private business group's measure of the economy's health fell more than expected in July, pushed lower by declines in the stock market, drops in new building permits and rising unemployment.

The New York-based Conference Board's forecast of future economic activity fell 0.7 percent, far short of the consensus estimate of a 0.2 percent decline by Wall Street economists surveyed by Thomson/IFR.

Revised June data showed no change to the index, which has slipped 0.9 percent for the six months ending in July.

The decline was the steepest in the index this year. The largest drag on the index was the decline in building permits, followed in order by stock prices, rising unemployment claims, a tightened money supply and falling manufacturers' orders for consumer goods.

Interest rate spreads, consumer expectations and manufacturers' orders for capital goods all contributed to the index.

Stocks, which were down before the index's release, cut some of their losses. The Dow Jones industrial average was down 54.63 at 11,362.80. The Standard & Poor's 500 was down 4.34 at 1,270.20, and the Nasdaq Composite was down 9.47 at 2,379.61.