diffusion index
economics
Quick Summary
A diffusion index is an economic indicator that summarizes the common tendency of a group of statistical series. It measures the extent to which economic strength or weakness pervades the economy. If more series are rising than falling, the index is above 50, suggesting expansion. Conversely, if fewer series are rising, the index falls below 50, indicating a potential recession or slowdown. Diffusion indexes are used to help identify economic turning points.12
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