Page 61 - FINAL CFA I SLIDES JUNE 2019 DAY 5
P. 61
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
