WASHINGTON A leading U.S. steel manufacturer file for bankruptcy Friday in yet another indication of a slowing U.S. economy and growing challenges from foreign competitors.

The Cleveland, Ohio-based LTV Corporation was set to become the second major U.S. company to raise the white flag in just two days.

In a written statement made public Thursday, LTV said it was considering filing for Chapter 11 bankruptcy protection in Federal court in Youngstown, Ohio.

"The company was in danger of exhausting its cash resources, potentially forcing it to immediately cease all operations," the document said.

According to an AFP report, William Bricker, chief executive of the corporation, blamed LTV's woes on unfair trading practices used by steel manufacturers from Europe and Asia, which, according to some experts, have been selling their products in the United States at dumping prices.

"Nearly 40 percent of our business has been lost and prices have fallen to the lowest levels in 20 years," complained Bricker.

Ohio Democratic congressman Dennis Kucinich warned more than 40,000 jobs in the region would be affected if LTV went under.

"There is a two-billion-dollar impact on our economy," Kucinich told CNN. "And LTV also provides medical and health benefits for its retirees. There's a lot of families who have something on the line here."

On Thursday, Montgomery Ward, a well-known retailer, announced it was ceasing operations after 128 years in business.

"Overall weak holiday sales and a very difficult retail environment simply did not permit us to complete the turnaround that might have been possible in an otherwise thriving economy," said Roger Goddu, head of Montgomery Ward, after the company filed for bankruptcy in the State of Delaware.

The retailer said all of its 250 stores and 10 distribution centers in 30 U.S. states would be shuttered in the next several months, which means that the company's 28,000 sales associates stood to lose their jobs.

"The downward trend in the economy has accelerated sharply in the past few weeks," noted Dick Davidson, chairman and chief executive officer of Union Pacific, a major U.S. railroad.

His company announced 2,000 layoffs on Wednesday.

The railroad also said it expected its fourth-quarter earnings to fall short of Wall Street expectations.

Union Pacific stock was down 2-1/8 dollars Thursday to end the day at 50-1/2 dollars a share.

The new bankruptcies and layoffs came amid multiplying indications that the red-hot U.S. economy was losing its sizzle as the incoming administration of Republican George W. Bush was preparing to take over the White House.

The conference board, a New York-based research group, said Thursday its overall consumer confidence index fell 4.3 points to 128.3 in December compared with November, its third straight monthly decline.

"This latest decline in consumer confidence suggests that consumer spending will cool further as we enter 2001," said Lynn Franco, head of the Conference Board Research Center.

President-Elect Bush has repeatedly said he sees warning signs indicating a slowdown of the U.S. economy.

But he was rebuked by the White House, with Clinton administration officials warning the Republicans they could "talk" the economy into a recession.

"If they start to talk about worst-case scenarios and talking down the economy ... then they run the risk of being part of a self-fulfilling prophecy," warned Gene Eperling, President Bill Clinton's economic adviser.

The U.S. Federal Reserve was set to meet late next month to consider whether lowering interest rates in the present economic environment would be in order.