NEW YORK, Dec. 20, 2010 /PRNewswire/ -- The Conference Board Leading Economic Index® (LEI) for Australia increased 0.6 percent in October to 119.5 (2004 = 100), following a 0.2 percent decline in September, and no change 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 116.7 (2004 = 100), following a 0.3 percent increase in September, and a 0.3 percent increase in August.
The Conference Board LEI for Australia resumed increasing in October, after declining slightly in the previous month. However, its six-month growth rate has moderated in recent months. At the same time, The Conference Board CEI for Australia continues to increase, and its growth rate has picked up slightly lately. Taken together, the current behavior of the composite indexes suggests that economic growth will likely be moderate 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
Apr to Oct
Leading Economic Index
Coincident Economic Index
n.a. Not available p Preliminary r Revised
Indexes equal 100 in 2004
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SOURCE The Conference Board