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COMPONENT SERIES, COMPOSITE LEADING INDICATOR (CLI)

Statistics Directorate    
French Equivalent: Séries composantes, ICA

Definition:
Component series are economic time series which exhibit leading relationship with a reference series at the turning points. Their seasonally adjusted or raw form are combined into a composite leading indicator (CLI).

Context:
The component series are selected from a wide range of economic sectors. The number of series used for the compilation of the OECD CLIs varies for each Member country, i.e. between five and eleven series. Selection of the appropriate series for each country are made according to the following criteria:

- Economic significance: there has to be an a priori economic reason for a leading relationship with the reference series;

- Cyclical behaviour: cycles should lead those of the reference series, with no missing or extra cycles. At the same time, the lead at turning points should be homogeneous over the whole period;

- Data quality: statistical coverage of the series should be broad; series should be compiled on a monthly rather than on a quarterly basis; series should be timely and easily available; there should be no break in time series; series should not be revised frequently.

Source Publication:
OECD, n.d. OECD Glossary for OECD Composite Leading Indicators, website.

Cross References:
Composite leading indicators (CLI)

Hyperlink:
http://www.oecd.org/std/clits/glossaryforoecdcompositeleadingindicators.htm#COMPONENT

Statistical Theme: Short-term economic statistics

Created on Sunday, November 04, 2001

Last updated on Friday, April 12, 2013