Composite Index of Coincident Indicators

 

What is the Composite Index of Coincident Indicators?

Published by the Conference Board, the Composite Index of Coincident Indicators evaluates current economic conditions. It is made up four cyclical data series that cover employment, household income, industrial activity, and business revenues. The four components are standardized, accounting for their magnitudes and volatility, and then combined into the composite index.

 

Why is the Composite Index of Coincident Indicators valuable?

The Composite Index of Coincident Indicators is used by investors, businesses, and policy makers to help analyze which phase of the business cycle the economy is currently in. When examined with the Composite Index of Leading Indicators and The Composite Index of Lagging Indicators, they provide a comprehensive view of the economy’s health.

 

What should you do?

Understanding the Composite Index of Coincident Indicators can be a useful tool when planning investments and making business decisions. Majestic’s CORE Report follows the Composite Index of Coincident Indicator; along with other indicators every week to see where the market stands.

Source: Investopedia.com