Composite Index of Coincident Indicators

AAA

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

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Lagging Indicator

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

    A measurable economic factor that changes before the economy ...
  4. The Conference Board

    A not-for-profit research organization for businesses that distributes ...
  5. Business Cycle Indicators - BCI

    Composite of leading, lagging and coincident indexes created ...
  6. Composite Index of Leading Indicators

    An index published monthly by the Conference Board used to predict ...
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. Are Oil Prices Helping Or Affecting ...
    Economics

    Are Oil Prices Helping Or Affecting ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center