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. The Conference Board

    A not-for-profit research organization for businesses that distributes ...
  4. Lagging Indicator

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

    A measurable economic factor that changes before the economy ...
  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. India Is Eclipsing China's Economy As ...
    Economics

    India Is Eclipsing China's Economy As ...

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center