Leading credit index components
Financial indicators such as yield curves and stock prices have been extensively used as leading indicators of economic activity due to their forward looking content. Indeed, the Leading Economic Index (LEI) for the United States, a widely used forecasting tool for business cycle turning points, includes several financial components. However, we argue that the coverage of financial and credit The index of leading economic indicators (LEI) is an economic variable, such as private-sector wages, that tends to show the direction of future economic activity. The Leading Credit Index constitutes financial market indicators including bond market yield curve data, interest rate swaps, and Fed bank lending survey data. Leading Economic Index m/m reflects a change in the composite index compiled based on a number of leading US macroeconomic indices, in the specified month compared to the previous one. The composite index smooths out the volatility of individual components and identifies the overall direction of the economy.