Sunday, December 18, 2011

Is it a coincident?


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.

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