Composite Index of Coincident Indicators


DEFINITION of 'Composite Index of Coincident Indicators'

An index published by the Conference Board that is a broad-based measurement of current economic conditions, helping economists and investors to determine which phase of the business cycle the economy is currently experiencing.. The Composite Index of Coincident Indicators comprises four cyclical economic data sets:

1. the number of employees on non-agricultural payrolls (released by the Bureau of Labor Statistics)
2. the Index of Industrial Production
3. the level of manufacturing and trade sales
4. the aggregate amount of personal income excluding transfer payments

BREAKING DOWN 'Composite Index of Coincident Indicators'

The Composite Index of Coincident Indicators is widely used by all kinds of investors to judge the economy's current position in the business cycle. The index is often used also as a confirmation tool in conjunction with the Composite Index of Leading Indicators.

  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Business Cycle Indicators - BCI

    Composite of leading, lagging and coincident indexes created ...
  3. Lagging Indicator

    1. A measurable economic factor that changes after the economy ...
  4. Composite Index of Leading Indicators

    An index published monthly by the Conference Board used to predict ...
  5. The Conference Board

    A not-for-profit research organization for businesses that distributes ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy ...
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  1. What are leading, lagging and coincident indicators? What are they for?

    An indicator is anything that can be used to predict future financial or economic trends. For example, the social and economic ... Read Full Answer >>
  2. How do you make working capital adjustments in transfer pricing?

    Transfer pricing refers to prices that a multinational company or group charges a second party operating in a different tax ... Read Full Answer >>
  3. Marginal propensity to Consume (MPC) Vs. Save (MPS)

    Historically, because people in the United States have shown a higher propensity to consume, this is likely the more important ... Read Full Answer >>
  4. When has the United States run its largest trade deficits?

    In macroeconomics, balance of trade is one of the leading economic metrics that determines the trading relationship of a ... Read Full Answer >>
  5. Which is more important to a nation's economy, the balance of trade or the balance ...

    There is no question the composition of a country's balance of payments is more important than its balance of trade. This ... Read Full Answer >>
  6. What are some of the drawbacks of industrialization?

    In economic history, industrialization is the social and economic transformation of the human group from an agrarian society ... Read Full Answer >>

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