Business Cycle Indicators - BCI

DEFINITION of 'Business Cycle Indicators - BCI'

Composite of leading, lagging and coincident indexes created by the Conference Board and used to forecast changes in the direction of the overall economy of a country. They can be used to confirm or predict the peaks and troughs of the business cycle and are published for the U.S., Mexico, France, the U.K., South Korea, Japan, Germany, Australia and Spain.

BREAKING DOWN 'Business Cycle Indicators - BCI'

Interpretation of BCI involves much more than simply reading graphs - an economy is too complex to be summarized with just a few statistics. Although past business cycles have shown patterns that are likely to be repeated to some degree, business cycles can start and end quite quickly for reasons that an indicator may not account for. Thus, investors, traders and corporations must realize that it is unreasonable to believe that any single indicator, or even set of indicators, always gives true signals and never fails to foresee a turning point in an economy.

RELATED TERMS
  1. Composite Index of Coincident Indicators

    An index published by the Conference Board that is a broad-based ...
  2. Economic Cycle

    The natural fluctuation of the economy between periods of expansion ...
  3. Peak

    The highest point between the end of an economic expansion and ...
  4. Diffusion Index

    1. A measure of the percentage of stocks that have advanced in ...
  5. Composite Index Of Lagging Indicators

    An index published monthly by the Conference Board that is used ...
  6. Cyclical Risk

    The risk of business cycles or other economic cycles adversely ...
Related Articles
  1. Trading

    Recession: What Does It Mean To Investors?

    Understanding the business cycle and your own investment style can help you cope with an economic decline.
  2. Markets

    Macroeconomics: The Business Cycle

    By Stephen Simpson The business cycle is the pattern of expansion, contraction and recovery in the economy. Generally speaking, the business cycle is measured and tracked in terms of GDP and ...
  3. Markets

    4 Economic Challenges South Korea Faces in 2016

    Learn about the economic challenges South Korea faces in 2016. Discover the impacts of currency fluctuations, the Chinese economy and Fed rate cuts.
  4. Trading

    Cashing In On A Commodities Boom

    They're hard to predict, but commodities cycles provide valuable information for traders.
  5. Trading

    North Korean Vs. South Korean Economies

    North Korea's economy is defined by its military ambitions and the humanitarian aid it receives, while South Korea is a world economic powerhouse.
  6. Managing Wealth

    Adjusting Holding Periods To Market Cycles (AAPL, GLD)

    Holding periods should be established after analysis of market cycles, to determine the most advantageous timing for entries and exits.
  7. Investing

    Business Cycle Investing: Ratios to Use For Each Cycle

    Examine economic and sector performance over the business cycle to determine which ratios are most important for each phase of the cycle.
  8. Markets

    Emerging Markets: Analyzing South Korea's GDP

    South Korea's transition from a war-devastated poor country to an affluent developed nation presents a phenomenal growth story.
  9. Trading

    Exploring Oscillators and Indicators: Leading And Lagging Indicators

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com Indicators can be separated into two main types - leading and lagging - both differing in what they show users. Leading ...
  10. Retirement

    Retiring in South Korea: A How-to Guide

    If you plan on retiring to South Korea – whether or not you have roots there – top considerations include rules on visas, dual citizenship, taxes and more.
RELATED FAQS
  1. Which accounting cycle is best for my business?

    Read about the different types and interpretations of accounting cycles, and why all businesses should modify the generic ... Read Answer >>
  2. What are leading, lagging and coincident indicators? What are they for?

    An indicator is anything that can be used to predict future financial or economic trends. For example, the social and economic ... Read Answer >>
  3. Why is an accounting cycle necessary?

    Find out why it is important for a company to identify and follow an accounting cycle, and how proper accounting helps the ... Read Answer >>
  4. What is revenue cycle management?

    Learn more about revenue cycle management and why the healthcare industry in particular has adopted this payment process ... Read Answer >>
  5. What are the key metrics used to measure the business cycle?

    Learn what key metrics are used to determine if the business cycle is in a period of expansion, contraction, or at a peak ... Read Answer >>
  6. How does the Federal Government track the business cycle?

    Learn more about the agencies used by the federal government to research business cycle changes and inform decisions about ... Read Answer >>
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center