From Calcuated Risk, 11/29/2011. The coincident indexes combine four state-level indicators to summarize current economic conditions in a single statistic.
The four state-level variables in each coincident index are
- nonfarm payroll employment,
- average hours worked in manufacturing,
- the unemployment rate, and wage and
- salary disbursements deflated by the consumer price index (U.S. city average).
The trend for each state’s index is set to the trend of its gross domestic product (GDP), so long-term growth in the state’s index matches long-term growth in its GDP.