Reflecting the nation’s economy, New Castle’s employee pension funds continued a downward trend during the last quarter.

The value of the funds’ two plans dropped by a combined $2,160,138, or 6.6 percent for the three-month period that ended March 31.

Huntington Private Financial Group experienced a drop of $929,766, or 5.76 percent, while Ameriprise Financial had a decrease of $1,230,372, or 7.42 percent.

It was the second consecutive quarter that the funds declined. For the final three months of 2007, the combined value of the funds dropped by $345,762, or 1.2 percent.

Joseph Sniezek, who represents Huntington, told the pension trustees at their quarterly meeting last night, “The first quarter of 2008 hopefully concludes the wheels falling off the U.S. economic wagon.”

Stock markets, he said, recorded their worst quarterly performance in five years.

The benchmark index outperformed the two funds. It fell by 5.04 percent during the quarter. The index is a composite of Standard and Poors, Lehman Bros. International/Government Credit Index and 90-day U.S. Treasury bills.

Sniezek said Huntington expects the economy to remain flat through the second quarter, with the overall outlook for equity markets to remain neutral “to slightly positive for the next 12 months.”

Eugene Gabriel, who represents Ameriprise, said “stocks across the board were punished.”

“The consensus among money managers is the market will rebound in the second half of 2008,” he said.

Despite the recent performance, Randall Rhoades, the city’s pension attorney, noted that the funds are ahead of the benchmark index since April 1, 2004, when the current investment managers took over.

The combined value of the funds increased by $5,450,033, or 5.49 percent, over the last four years. The benchmark index has gone up by 5.35 percent.

As of March 31, the total of the portfolio was $30,037,846. Huntington’s value was $14,959,174 and Ameriprise’s was $15,078,672.

The increases in both funds include the distributions made and fees of the managers.

At the recommendation of Rhoades and at the request of the investment managers, the trustees agreed to a change in investment policy.