OECD Standardised BCI, Amplitude adjusted (Long term average=100), sa

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Data Characteristics

Data Characteristics

Unit of measure used

Unit of measure used

Index

Population & Scope

Population & Scope

Sector coverage

Sector coverage

The standardised BCIs represent only the manufacturing sector. Other sectors (construction, retail trade and other services) were not included since data availability is scarce among Non European Union OECD member countries and in the Big 6 OECD Non-member Economies. In order of preference the following types of business survey data have been used to calculate the standardised indicators by country: the harmonized industrial confidence indicator, business confidence indicators (either using the national definition or by computing it internally) or business situation.

Concepts & Classifications

Concepts & Classifications

Key statistical concept

Key statistical concept

Starting from June 2010, smoothing, normalisation and zone aggregation methods have changed as follow:

1. The series are now smoothed using the Hodrick-Prescott (HP) filter, where cycles shorter than 6 months are removed (l=1).

2. The series are normalised by subtracting their mean and then dividing the difference by their standard deviation. After normalisation, they are amplitude-adjusted to the de-trended indices of GDP, used as proxy measures of the business cycle, and finally centred around 100.

3. The BCI are calculated as annually chain-linked Laspeyres indices using as weights annual GDP at current prices adjusted for PPPs. More information on this calculation can be found in the OECD Composite Leading Indicator zone aggregation documentation; for weights, please click here. BCI zones are calculated if the overall weight of the available components is greater than 70%.

The standardised BCIs represent only the manufacturing sector. Other sectors (construction, retail trade and other services) were not included since data availability is scarce among Non European Union OECD member countries and in the Big 6 OECD Non-member Economies. In order of preference the following types of business survey data have been used to calculate the standardised indicators by country: the harmonized industrial confidence indicator, business confidence indicators (either using the national definition or by computing it internally) or business situation.

Starting from June 2010, smoothing, normalisation and zone aggregation methods have changed as follow:

1. The series are now smoothed using the Hodrick-Prescott (HP) filter, where cycles shorter than 6 months are removed (l=1).

2. The series are normalised by subtracting their mean and then dividing the difference by their standard deviation. After normalisation, they are amplitude-adjusted to the de-trended indices of GDP, used as proxy measures of the business cycle, and finally centred around 100.

3. The BCI are calculated as annually chain-linked Laspeyres indices using as weights annual GDP at current prices adjusted for PPPs. More information on this calculation can be found in the OECD Composite Leading Indicator zone aggregation documentation; for weights, please click here. BCI zones are calculated if the overall weight of the available components is greater than 70%.