The Conference Board said it made the following benchmark revisions to how it calculates the leading economic indicators.
The former real money supply (M2) component will be removed, retroactive to 1990, and replaced by a new leading credit index (LCI) component.
The Institute of Supply Management Supplier Delivery Index will be replaced as a component by the ISM new orders index.
The Reuters-University of Michigan consumer expectations index will be replaced by an equally weighted average of consumer expectation measures that come from surveys conducted by the Conference Board and Reuters-University of Michigan.
The “new orders for (nondefense) capital goods” component will be replaced by “new orders for (nondefense) capital goods, excluding aircraft.”
“In addition to these changes, several technical adjustments will be made to ensure a more rigorous reading of data and trends,” the Conference Board said in a release.
The changes will be in place for the release on Jan. 26, board said.
