The Conference Board Leading Economic Index® (LEI) for Australia Increases
NEW YORK, Dec. 17, 2012 /PRNewswire/ — The Conference Board Leading Economic Index® (LEI) for Australia increased 0.2 percent in October to 122.7 (2004 = 100), following a 0.4 percent decline in September, and a 1.0 percent decline in August.
At the same time, The Conference Board Coincident Economic Index® (CEI) for Australia, a measure of current economic activity, increased 0.1 percent in October to 120.5 (2004 = 100), following no change in September and no change in August.
The LEI for Australia increased in October after declining in the last three months. Nevertheless, the six-month change in the LEI remains negative. Meanwhile, the CEI for Australia also increased slightly in October, but its six-month growth rate has moderated compared to earlier this year. Taken together, the composite indexes and their components continue to suggest that the rate of economic growth is likely to slow in the near term.
About The Conference Board Leading Economic Index® (LEI) for Australia
The composite economic indexes are the key elements in an analytic system designed to signal peaks and troughs in the business cycle. The leading and coincident economic indexes are essentially composite averages of several individual leading or coincident indicators. They are constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component – primarily because they smooth out some of the volatility of individual components.
The seven components of The Conference Board Leading Economic Index(®) for Australia include:
Yield Spread, 10 year minus Policy Rate
Share Prices, All Ordinaries
Money Supply, M3
Rural Goods Exports
Sales to Inventory Ratio
Gross Operating Surplus, Private Non-Financial Corporations
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About The Conference Board
The Conference Board is an independent business membership and research association working in the public interest. Our mission is unique: To provide the world’s leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org.
Summary Table of Composite Economic Indexes 2012 6-month Aug Sep Oct Apr to Oct Leading Economic Index 123.0 r 122.5 p 122.7 p Percent Change -1.0 r -0.4 p 0.2 p -0.8 Diffusion 50.0 42.9 64.3 64.3 Coincident Economic Index 120.4 r 120.4 p 120.5 p Percent Change 0.0 0.0 p 0.1 p 0.4 Diffusion 25.0 62.5 75.0 50.0 n.a. Not available p Preliminary r Revised Indexes equal 100 in 2004 Source: The Conference Board All Rights Reserved
SOURCE The Conference Board