Business and Personal Finance Dictionary

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• INDEX OF LEADING ECONOMIC INDICATORS
  
  This monthly composite of 10 economic measurements was developed to track and help forecast changing patterns in the economy. It is compiled by The Conference Board, a business research group. The components are adjusted from time to time to help improve the accuracy of the index, which in the past has successfully predicted major downturns (although it has also warned of some that did not materialize). The current components are the average work week, average initial claims for unemployment benefits, manufacturers' new orders for consumer goods and materials, vendor performance (how quickly companies receive deliveries from suppliers), plant and equipment orders, building permits, stock prices of 500 common stocks, the M2 money supply, the interest rate spread, and the index of consumer expectations.
  
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