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Chapter 5: Composite Economic Indicators

1 Chapter 5: Composite Economic Indicators Contents Introduction .. 1 Arguments for and against Composite Economic Indicators .. 2 Composite Economic Indicators , some definitions .. 3 Cyclical Composite Economic Indicators .. 5 Non-Cyclical Indicators .. 8 Structural Indicators .. 9 Steps for construction of Composite Economic Indicators .. 10 Recommendations .. 18 References .. 19 Introduction Composite Economic Indicators (CEI) has been in use for many years. One of the first and most known Composite Indicators is the Conference Board Leading Indicators1.

forthcoming), the Handbook on constructing composite indicators (OECD 2008) and the OECD system of Composite leading indicators (OECD 2012). 5.2 Arguments for and against composite economic indicators There is an ongoing discussion on pros and cons for using composite indicators. The main

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