CB Leading Index

AAA

DEFINITION of 'CB Leading Index'

An index that is a composite average of ten leading indicators in the US. It one of the key elements in the Conference Board's analytic system, which is designed to signal peaks and troughs in the business cycle. Since it is an average, the leading index smooths out some of the volatility of individual components, thereby revealing turning points in the economic data more convincingly than any individual component. Generally known as the leading economic index (LEI).

INVESTOPEDIA EXPLAINS 'CB Leading Index'

Components of the CB leading index include average weekly manufacturing hours, average weekly initial claims for unemployment insurance, manufacturers' new orders for consumer goods and non-defense capital goods, building permits and stock prices. Other components are indexes of supplier deliveries and consumer expectations, M2 money supply and the interest rate spread between 10-year Treasury bonds and federal funds.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. M2

    A measure of money supply that includes cash and checking deposits ...
  3. Lagging Indicator

    1. A measurable economic factor that changes after the economy ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy ...
  5. The Conference Board

    A not-for-profit research organization for businesses that distributes ...
  6. Marginal Propensity To Invest

    The ratio of change in investment to change in income. The marginal ...
Related Articles
  1. Retirement

    Consumer Confidence: A Killer Statistic

  2. Active Trading

    Leading Economic Indicators Predict ...

  3. Active Trading Fundamentals

    Leading Indicators Of Behavioral Finance

  4. Economics

    What's the difference between hyperinflation ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center