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Leading indicators index

Leading indicators index

Posted by Trader On January - 13 - 2009













A weight average index is calculated on the basis of totality of leading indicators in order to forecast the state of county’s economy. The indicators of industrial orders, unemployment applications, monetary indicators, an average workweek, construction permissions, prices for principal stocks, orders for goods of long term utilizations, Consumer Confidence Index are all referred to Leading Indicators. The Index characterizes the development of country’s economy during coming six months. There is also an empirical rule and its main idea is that the publishing of indicator’s value in negative field during three month is considered to be an indicator which lowers the country’s economic development. The index exerts a limited influence on the market. Its limited influence is characterized by the fact that the indicator is published in a month after an accounting period when all the principal indices have been announced. The growth of this index leads to the growth of dollar’s rate. As a rule, its value is published during the first days of every month.

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