Composite Leading Indicators: Reference Series (GDP) Ratio to Trend for G7

G7LORSGPRTSTSAM • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

100.25

Year-over-Year Change

0.49%

Date Range

2/1/1960 - 11/1/2023

Summary

The Composite Leading Indicators: Reference Series (GDP) Ratio to Trend for G7 measures the performance of the leading economic indicators for the G7 countries relative to their long-term trends. This metric provides early signals about the direction of economic activity and is widely used by policymakers and analysts.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

This leading indicator ratio tracks the deviation of the composite leading indicator for the G7 economies from its long-term trend, signaling whether economic conditions are improving, deteriorating, or stable compared to historical norms. It is a valuable tool for assessing the overall health and trajectory of the global economy.

Methodology

The data is calculated based on a composite of various leading economic indicators for the G7 countries.

Historical Context

Economists and policymakers closely monitor this leading indicator ratio to gain insights into the near-term outlook for the global economy and shape appropriate policy responses.

Key Facts

  • The G7 countries are Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
  • The ratio is based on a composite of various leading indicators, including industrial production, employment, and consumer confidence.
  • Readings above 1.0 suggest the G7 economies are outperforming their long-term trends, while values below 1.0 indicate underperformance.

FAQs

Q: What does this economic trend measure?

A: The Composite Leading Indicators: Reference Series (GDP) Ratio to Trend for G7 measures the performance of the leading economic indicators for the G7 countries relative to their long-term trends.

Q: Why is this trend relevant for users or analysts?

A: This leading indicator ratio is widely used by policymakers and analysts to gain insights into the near-term outlook for the global economy and shape appropriate policy responses.

Q: How is this data collected or calculated?

A: The data is calculated based on a composite of various leading economic indicators for the G7 countries.

Q: How is this trend used in economic policy?

A: Economists and policymakers closely monitor this leading indicator ratio to assess the overall health and trajectory of the global economy and inform their policy decisions.

Q: Are there update delays or limitations?

A: The data is subject to the typical update schedules and potential revisions common to economic indicators.

Related Trends

Citation

U.S. Federal Reserve, Composite Leading Indicators: Reference Series (GDP) Ratio to Trend for G7 (G7LORSGPRTSTSAM), retrieved from FRED.