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US Composite Leading Indicator (CLI)

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The US Composite Leading Indicator (CLI), normalized for the United States, closely mirrors the Conference Board "Leading Economic Index" (LEI). It offers unique insights into economic and financial dynamics.

The Composite Leading Indicator (CLI) is an economic tool designed to anticipate economic developments. It is created by aggregating and normalizing a wide range of economic and financial data from various sources.
The normalized data is then aggregated, and a composite indicator is calculated by taking a weighted average of individual indicators.
The CLI is used to provide early insights into the state of the economy and to anticipate future economic trends. It is particularly valuable for predicting economic downturns, including recessions.
The CLI is an essential tool for economists, governments, businesses, and investors seeking to understand economic trends and make informed decisions.

Key Features:

1. Early Warning: Just like its counterpart, the CLI indicator excels at offering early warnings about significant economic events, particularly economic crises. This makes it an indispensable asset for analysts and investors.

2. Recession Indicators: The moving average serves as an early warning system for potential economic recessions. When it crosses the indicator line from the bottom to the top while surpassing a predefined threshold (e.g., 101), it signals a potential crisis.

3. Market Impact: The CLI indicator provides valuable insights into the performance of financial markets, offering cues about indices such as the S&P 500, Nasdaq, Dow Jones, and more.

Why It Matters:

Understanding the US Composite Leading Indicator (CLI) indicator, normalized for the United States, is crucial for anticipating economic shifts and preparing for changes in financial markets. By analyzing a diverse array of economic factors, it provides a holistic view of economic well-being. Whether you're an investor or economist, this indicator can be an invaluable resource for staying informed about market trends and major economic developments.

Source:
www.data.oecd.org/le...ng-indicator-cli.htm
Notes de version:
Source:
OECD Composite Leading Indicator (CLI): www.data.oecd.org/le...ng-indicator-cli.htm

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