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. Consumer Confidence: A Killer Statistic
    Retirement

    Consumer Confidence: A Killer Statistic

  2. Leading Economic Indicators Predict ...
    Active Trading

    Leading Economic Indicators Predict ...

  3. Leading Indicators Of Behavioral Finance
    Active Trading Fundamentals

    Leading Indicators Of Behavioral Finance

  4. Law of Demand
    Economics

    Law of Demand

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center