What is the 'Composite Index of Leading Indicators'

The Composite Index of Leading Indicators, otherwise known as the Leading Economic Index (LEI), is an index published monthly by the Conference Board used to predict the direction of global economic movements in the months to come. It is made up of 10 economic components, whose changes tend to precede changes in the overall economy. The Conference Board, founded in 1916, is an independent research association that provides its member organizations with economic and financial information.

BREAKING DOWN 'Composite Index of Leading Indicators'

The 10 components of the Composite Index of Leading Indicators are:

1. The average weekly hours worked by manufacturing workers;

2. The average number of initial applications for unemployment insurance;

3. The amount of manufacturers' new orders for consumer goods and materials;

4. The speed of delivery of new merchandise to vendors from suppliers;

5. The amount of new orders for capital goods unrelated to defense;

6. The amount of new building permits for residential buildings;

7. The S&P 500 stock index;

8. The inflation-adjusted monetary supply (M2);

9. The spread between long and short interest rates; and

10. consumer sentiment.

The Composite Index of Leading Indicators is a number used by many economic participants to judge what is going to happen in the near future. By looking at it in relation to business cycles and general economic conditions, investors and businesses can form expectations about what is ahead, and make better-informed decisions.

Global Leading Economic Index Data

As of June 2016, the United States had an LEI of 123.7, which was a 0.3% increase from May 2016. In comparison, Australia's LEI was 102.6, Brazil's LEI was 96.1, China's LEI was 150.6, France's LEI was 112.5, Germany's LEI was 107.5, India's LEI was 101.4, Japan's LEI was 102.4, South Korea's LEI was 110.2, Mexico's LEI was 98.8, Spain's LEI was 104.2 and the United Kingdom's LEI was 114.1, according to the latest figures published in May and June 2016. These values are calculated with a base year of 2010 equaling 100.

Overview of the Conference Board

The Conference Board is served by its board of chairmen and trustees and its voting members, similar to the structure of a private corporation, except no one has any ownership stake in the Conference Board because it is a not-for-profit corporation. In 2016, these positions are filled by many high-ranking executives from corporations including Deutsche Bank, BBVA, John Deere & Company, Johnson & Johnson, Monsanto, British Petroleum, Royal Dutch Shell, MasterCard, General Electric, Novartis and State Farm Insurance.

  1. CB Leading Index

    An index that is a composite average of ten leading indicators ...
  2. Composite Index Of Lagging Indicators

    An index published monthly by the Conference Board that is used ...
  3. RON (Romanian New Leu)

    The currency abbreviation for the Romanian new leu (RON), the ...
  4. Consumer Confidence Index - CCI

    A survey by the Conference Board that measures how optimistic ...
  5. Composite Index of Coincident Indicators

    An index published by the Conference Board that is a broad-based ...
  6. Business Cycle Indicators - BCI

    Composite of leading, lagging and coincident indexes created ...
Related Articles
  1. Insights

    Some Leading Indicators Are Signalling a Recession

    Several leading economic indicators have peaked, suggesting that a recession before the years' end is not out of the question, according to Deutsche Bank.
  2. Personal Finance

    2 Reasons Why the Stock Market Leads the Economy

    Pay attention to how economic strength can follow a sustained stock market advance and how economic weakness can result from a stock market slump.
  3. Investing

    Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.
  4. Insights

    Eyeing China? Consider These Economic Indicators

    If you're considering investing in China and want to know when to buy, sell, hold or stay away, consider these economic indicators.
  5. Insights

    A Look At China's Growing Influence On The World

    With the second-largest economy in the world, China has significant (and growing) influence on the global economy. But how is that impact figured?
  6. Trading

    A Guide To Conference Board Indicators

    Learn to put the CB data sets to trading use. Each chapter takes you through one of the board's benchmark indicators or surveys, their significance and their applications.
  7. Insights

    What is a Leading Indicator?

    A leading indicator is a measurable economic factor that tends to change right before the economy starts to change.
  8. Retirement

    The Income Property: Your Late-In-Life Retirement Plan

    You're nearing retirement age and you don't have the nest egg you need. Here's how an income property can help you make up the shortfall.
  9. Insights

    Consumer Confidence Index

    The Consumer Confidence Index is the result of a monthly survey of 5,000 U.S. households by the Conference Board that measures how optimistic or pessimistic consumers are about the economy's ...
  10. Trading

    Trading Around Key Options Indicators

    Learn the key economic indicators to help predict market movement.
  1. What are the most common market indicators to follow the U.S stock market and economy?

    Understand some of the key indicators analysts use to follow the U.S. stock markets and to assess the overall condition of ... Read Answer >>
  2. How should an investor interpret the consumer and business confidence index when ...

    Learn how investors benefit from watching the consumer and business confidence indexes, along with other key metrics, when ... Read Answer >>
  3. What are the most important equity market indexes?

    Discover the most important equity market indexes. Stock market indexes are tools to evaluate the performance of the stock ... Read Answer >>
  4. What is the difference between market indicators and economic indicators?

    Read about the differences between technical market indicators and general economic indicators, and learn how traders and ... Read Answer >>
  5. What are the most common market indicators to follow the Chinese stock market and ...

    Learn the most commonly followed market and economic indicators used by market analysts to track the Chinese stock market ... Read Answer >>
  6. What are the pros and cons of using the S&P 500 as a benchmark?

    Learn about the advantages and disadvantages of using the S&P 500 as a benchmark for portfolio performance, and understand ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center