Page 71 - FINAL CFA SLIDES DECEMBER 2018 DAY 5

Session Unit 4:
17. Understanding Business Cycles, p. 1

LOS 17.i: Interpret a set of economic indicators and describe
their uses and limitations.., p.96 - 98

Leading indicators: change direction before peaks or troughs:

• Average weekly hours in manufacturing;

• initial claims for unemployment insurance;

Coincident indicators: change direction at same time with peaks or troughs:

• Index of industrial production;

• Manufacturing and trade sales

Lagging indicators: don’t tend to change direction until after peaks or troughs are

underway

• Unemployment

• Inventory to sales ratio