Composite Index Of Lagging Indicators

AAA

DEFINITION of 'Composite Index Of Lagging Indicators'

An index published monthly by the Conference Board that is used to confirm the direction of the economy's movements in past months. The index is made up of the following seven economic components, whose changes tend to come after changes in the overall economy:

1. The value of outstanding commercial and industrial loans
2. The change in the Consumer Price Index for services from the previous month
3. The change in labor cost per unit of labor output
4. The ratio of manufacturing and trade inventories to sales made
5. The ratio of consumer credit outstanding to personal income
6. The average prime rate charged by banks
7. The inverted average length of employment

INVESTOPEDIA EXPLAINS 'Composite Index Of Lagging Indicators'

As it measures the economic activities of previous months, the Composite Index of Lagging Indicators is used as an after-the-fact way to help confirm economists' assessments of current economic conditions. For this purpose, the Composite Index of Lagging Indicators is best used in conjunction with the Composite Index of Coincident Indicators and Composite Index of Leading Indicators.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Composite Index of Leading Indicators

    An index published monthly by the Conference Board used to predict ...
  3. Composite Index of Coincident Indicators

    An index published by the Conference Board that is a broad-based ...
  4. Consumer Confidence Index - CCI

    A survey by the Conference Board that measures how optimistic ...
  5. Central Bank

    The entity responsible for overseeing the monetary system for ...
  6. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket ...
Related Articles
  1. What are leading, lagging and coincident ...
    Investing

    What are leading, lagging and coincident ...

  2. Economic Indicators To Know
    Retirement

    Economic Indicators To Know

  3. A Guide To Conference Board Indicators
    Markets

    A Guide To Conference Board Indicators

  4. Boom or Bust? The End of China's One-Child ...
    Economics

    Boom or Bust? The End of China's One-Child ...

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center