Interactive chart link https://mitchklee35.github.io/LEI_1982_2020/
The above chart was created through Tableau and the data was extracted from https://fred.stlouisfed.org/
What Is the Composite Index of Leading Indicators? The Composite Index of Leading Indicators, otherwise known as the Leading Economic Index (LEI), is an index published monthly by The Conference Board. It is used to predict the direction of global economic movements in future months. The index is composed of 10 economic components whose changes tend to precede changes in the overall economy. Businesses and investors can use the index to help plan their activities around the expected performance of the economy and protect themselves from economic downturns.
- Average weekly hours worked by manufacturing workers indicates both consumer income and business demand for labor to engage in ongoing production.
- Average number of initial applications for unemployment insurance indicates possible changes in unemployment, which reflects the level of business activity and impacts consumer income.
- The volume of manufacturers' new orders for consumer goods and materials indicates businesses' short term operational spending.
- The new orders index (from the Institute for Supply Management PMI), which indicates whether orders for various manufactured goods are increasing or decreasing.
- The volume of new orders for capital goods (except aircraft), unrelated to defense, indicates business plans for longer-term future production involving durable capital.
- The number of new building permits for residential buildings indicates future spending on construction projects.
- The S&P 500 stock index, which indicates the total value of the business sector and the nominal wealth of stock holders in the economy.
- The inflation-adjusted monetary supply (M2) indicates the purchasing power of highly liquid assets available in the financial system for business and consumer borrowing and spending.
- The spread between long and short interest rates, which indicates bond market participants expectations for future performance of the economy.
- Average consumer expectations for business conditions indicate forward-looking consumer sentiment for the next six to 12 months.
LEI definition located at https://www.investopedia.com/terms/c/cili.asp#:~:text=LEI%20is%20intended%20to%20give,consumer%20spending%20and%20business%20investment.