Frequently Asked Questions

For clients

  • Index of leading indicators: publication time, rules of interpretation

    Professional analysts define the index of leading indicator as a set of economic indicators. The data are published in Conference board report monthly. Specialists tend to relate this kind of date with prognosis, since the indicator is vitally important for it.

    What does Leading Indicators Index tell?

    An accurate analysis of Conference Board report allows us to draw certain conclusions concerning the prospects for the economic development. The index includes 10 elements which reflect the current market situation within the US. The government shall be considered some kind of a flagman, thus financial state of the country immediately finds its mark on exchange rates and securities.

    Among the elements of Leading Indicators Index there are:

    • 1) Average duration of the working week in industrial field. The index calculates the total of hours and is applicable to all the fields separately.
    • 2) An average number of requests for unemployment insurance compensation. The data are collected from all the states.
    • 3) The volume of orders for consumer goods. While calculating, contracts with foreign partners are also considered, including purchase of materials from local production providers.
    • 4) Time cost on goods transfer from plant to distribution. What is elevated is the speed of transfer from factories to the shops.
    • 5) The amount of repeated orders to manufacture capital goods. These are equipment and planes mostly. The volume of orders among military field is not considered.
    • 6) The amount of permits for building houses for the previous period.
    • 7) The price of 500 stocks in use of financial market with S&P 500 index.
    • 8) The elevation of consumers’ mood.
    • 9) Monetary stock (M2) including inflation processes.
    • 10) Difference between percentage rates on short-range and long-range financial products.

    The described above indicators characterize the economic state of the USA quite accurately. The data extracted from monthly report is used by professional traders, investors, economists. The Leading Indicators Index analysis allows us to correctly elevate the situation and choose prospective ways for investment. The 10 indicators, combined in one, are one of the most effective instruments for short-range prognosis.

    How to receive the data and interpret it on time?

    The official data provider for this index is Conference Board. It is published as a detailed report, are accurate and real. The experts expect this report every 20th day of the month, an exact date of publishing isn’t stipulated. The data may be published earlier or later.

    In formally several hours, the data appear on pages of central financial magazines. The central are Thomas Reuters and Bloomberg. E-magazines are published in English only.

    Elevating the Leading indicators is a complex process. These are the key characteristics of governmental economics of the USA. The changes shall reflect in a fall or rise. This is some kind of basis for drawing up a conclusion concerning business cycles.

    The changes in indicators demonstrate the turning tendencies. Indicators are extremely accurate, which distinguishes it from other individual indicators. Once studied the report, a trader makes a definite conclusion concerning a fall or rise in this or that sector. Investors are allowed to make an optimum decision for investment direction.

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