Economic Conditions: Trying to Read the Future (2/2)

The index of leading indicators is just one of the tools used to measure the business cycle. Business cycles are the normal changes that happen in economic growth over time.

A measure called the coincident index provides information about current conditions. Employment rates are an important part of it. There is also a lagging index. It helps confirm economic changes that currently appear to be taking place. Interest rates are an important lagging indicator.

The Conference Board publishes economic indicators for the United States. The Conference Board is a non-profit organization based in New York. It brings together business leaders to learn new ideas from one another. It has member companies around the world. The Conference Board also does economic research. Its work helps show business and government leaders what conditions might be ahead.

But this group did not always produce the index of leading economic indicators. It took over the job in 1995 from the Bureau of Economic Analysis, part of the Commerce Department. The Conference Board also publishes economic indicators for Australia, France, Germany and Japan. Others are Britain, Mexico, South Korea and Spain.