Composite indexes

Several statistics combined into one read on the economy

In detail

Composite indexes bundle production, employment, consumption and other statistics into a single measure of momentum. Three versions exist: leading, which turns first, coincident, which turns with the economy, and lagging, which turns after. The leading index is watched for the direction a few months ahead, but it misses often enough that it is never read alone.

Example

The leading index is generally taken to reflect the economy 3 to 6 months ahead.

Related terms

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For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.