March 5 (Bloomberg) -- U.S. stock-index futures fell before reports that may add to evidence economic growth is slowing in the world's biggest economy.

Among the releases that investors will be looking to are today's figures on service industries, along with data on home sales scheduled for tomorrow.

``More weak economic data will increase the burden for the market,'' said Michael Scholz, an equity strategist at WestLB AG in Dusseldorf.

Shares of General Motors Corp., the world's largest automaker, and Caterpillar Inc., the No. 1 maker of earthmoving equipment, led a decline in Europe by companies whose earnings are most dependent on economic growth.

Goldman Sachs Group Inc. paced the slide after the Taipei- based Commercial Times reported the direct investment department of the biggest U.S. securities firm by market value may join a bid to buy Taiwan's Advanced Semiconductor Engineering Inc.

Standard & Poor's 500 Index futures expiring in December lost 11.6 to 1374.2 as of 11:25 a.m. in London. Dow Jones Industrial Average futures fell 108 to 12,000. Nasdaq-100 Index futures slid 17.50 to 1708.75.

U.S. stocks dropped to a three-month low on March 2, completing their worst week since January 2003, after a decline in consumer confidence magnified the risk that profit growth will be wiped out by a recession.

Service Industries

The Institute for Supply Management's index of non- manufacturing businesses probably fell to 57 in February from 59 the previous month, according to the median estimate of economists in a Bloomberg News survey. Readings above 50 point to growth in these industries, which make up almost 90 percent of the economy. The report is due at 10 a.m. New York time.

The economy grew at an annual rate of 2.2 percent in the fourth quarter, revised figures from the Commerce Department showed last week. Growth this quarter is projected at an annual rate of 2.5 percent, according to the median estimate of economists surveyed by Bloomberg News from Feb. 1 to Feb. 8.

Fed Bank of St. Louis President William Poole speaks about inflation, financial stability and economic growth at Universidad Adolfo Ibanez in Santiago, Chile, while Fed Governor Kevin Warsh addresses the Institute of International Bankers' annual Washington Conference on liquidity.

Fed Governor Randall Kroszner will speak on the role of community banks in the financial system to America's Community Bankers' Government Affairs Conference in Washington.

A report tomorrow is likely to show a 1.4 percent decline in January on contract signings to buy previously-owned homes, after a 4.9 percent increase in December.

GM, Caterpillar

General Motors fell 68 cents to $29.94 in Germany. Caterpillar retreated 92 cents to $62.12. Wal-Mart Stores Inc., the world's biggest retailer, lost 47 cents to $47.34.

Goldman Sachs Group declined $1.88 to $193.79 in Germany. Its direct investment department may join Carlyle Group in seeking to buy Taiwan's Advanced Semiconductor Engineering Inc., the Chinese-language Commercial Times reported.

Goldman spokesman Edward Naylor declined to comment on the report in a phone interview.

Carlyle and Advanced Semiconductor Chairman Jason Chang on Nov. 24 said they intended to jointly buy the chipmaker for NT$39 per share, valuing the deal at $5.7 billion. Goldman is advising the Washington-based buyout firm on the takeover bid.

Palm Inc. declined 32 cents to $17.98 in Frankfurt after JPMorgan Chase & Co. cut its recommendation on the shares of the maker of the Treo e-mail phone to ``underweight'' from ``neutral.''

Palm, ADC

``We are skeptical that a takeover is pending, and that it can happen at a significant premium to where Palm currently trades,'' analysts including Paul Coster wrote in a report published today.

``Palm's product line-up is stale, price-based competition will likely weigh on average selling prices and gross margins, and research and development could climb in fiscal 2008,'' they said.

ADC Telecommunications Inc., a maker of phone-networking gear, is scheduled to report fiscal first-quarter earnings after exchanges close. The shares dropped 28 cents to $15.27 in Frankfurt.

New Century Financial Corp. may be active. The second- biggest originator of subprime mortgages in the U.S. said the U.S. attorney for the Central District of California is running a criminal inquiry ``in connection with trading in the company's securities, as well as accounting errors regarding the company's allowance for repurchase losses.'' The shares didn't trade in Europe.

Research in Motion

Fremont General Corp., the third-largest provider of subprime U.S. mortgages through brokers, said a regulatory order will require it to stop giving mortgages to people who can't repay, and it plans to exit the subprime home-loan business. The shares didn't trade in Europe.

Research In Motion Ltd. dropped $1.89 to $134.08 in Frankfurt. The maker of the BlackBerry e-mail phone said it will record about $250 million of charges as it restates earnings following a review of its stock-options grants.

The S&P 500 retreated 16, or 1.1 percent, to 1387.17. The Dow average decreased 120.24, or 1 percent, to 12,114.10, the lowest since Nov. 10. The Nasdaq Composite Index fell 36.21, or 1.5 percent, to 2368.

---With reporting by Benjamin Rahr in London. Editor: Kohut.

To contact the reporter on this story: Andreas Hippin in Frankfurt at ahippin@bloomberg.net.

Last Updated: March 5, 2007 07:09 EST