Business cycle indicators

Leading and lagging indicator indexes are used to predict the business cycle. They represent key variables that either precede the business cycle or that lag the business cycle. A third commonly used index is the composite index of coincident indicators. These indicators follow the cycle closely.

The composite index of (11) leading indicators includes information on the following topics:

1. Average weekly hours
2. Claims for unemployment insurance
3. New orders
4. Stock prices
5. Orders for plant and equipment
6. Private housing
7. Vendor performance
8. Consumer expectations
9. Unfilled orders
10. Prices of sensitive materials
11. Money supply