It is an average index, calculated on the basis of several macroeconomic indicators.
Calculationof this indexis made with the account of the data on production orders, applications for unemployment benefits, rates of money supply, average workweek, building permits, common stocks prices, orders for durable goods and consumer confidence index.The index characterizes the economic developmentwithin the next 6 months.
There is also a rule of thumb, stating that the negative output of the index value within three consecutive months indicates economic recession.
Вплив на ринок
It has a little impact on the market, as it isgiven after a month from the reporting period, when practically all the major indicators used in its calculation, have already been published.