The WSU Leading Economic Indicators Index is designed to give an indication of where the Wichita economy is headed. Leading indicators tend to change before the economy itself changes. The WSU Leading Economic Indicators Index is composed of nine monthly indicators including:
Monthly initial claims for unemployment insurance
Building permits, new residential construction
Building permits, new non-residential construction
National index of consumer confidence
Average weekly hours worked in manufacturing
New orders for aircraft
Stock prices of aerospace companies
Wheat prices (futures) and the
Conference Board’s national index of leading economic indicators
The WSU Current Conditions Index is designed to reflect the present state of the economy. The WSU Leading Economic Indicators Index, on the other hand, is designed to forecast future movements in the economy.
From January to February the WSU Leading Economic Indicators Index increased 1 percent. Five of the nine indicators showed improvement. Initial unemployment claims declined, the inflation-adjusted value of residential and non-residential building permits increased, as well as the inflation-adjusted value of new orders for aircraft and the price of wheat futures. The national index of consumer confidence had the greatest decline, dropping 10.9 index points from January to February.
Like the Current Conditions Index, the WSU Leading Index has been on the rise for the past four years. However, its growth has not slowed over the 12-month period ending in February. During that time it grew 6.5 percent compared to an average increase of 4.9 percent for the three 12-month periods prior to that.
To read the entire WSU Leading Economic Indicators Index report, click here.
