Page 72 - FINAL CFA SLIDES DECEMBER 2018 DAY 5

Session Unit 4:
LOS 17.i: Interpret a set of economic 17. Understanding Business Cycles, p. 1

indicators and describe their uses and
limitations.., p.96 - 98

• Commercial and industrial loans and

the consumer price index are lagging
indicators. Industrial production and

real personal income are coincident
indicators. These indicators suggest
the business cycle has been in the

contraction phase.

• Building permits and orders for

consumer goods are leading
indicators. Increases in both of these

in the latest two months suggest an
economic expansion may be emerging.

• Taken together, these data indicate

that the business cycle may be at or
just past its trough.