Last Updated on: 10th January 2021, 04:23 am
A leading indicator of economic health based on surveyed institutional investors and analysts. The survey asks respondents to rate the 6-month economic outlook for the nation. A reading above 0.0 indicates optimism while a reading below 0.0 implies pessimism.
The indicator incorporates current economic conditions in constructing a 6-month outlook. Since investors and analysts are highly informed regarding economic conditions, changes in their sentiment can be a reliable forecast of future economic activity.
If the current reading is an improvement from the past figure or is better than forecasted, it could have a positive impact on the nation
Vincent Nyagaka is a Professional Trader, Analyst & Author. He has been actively engaged in market analysis for the past 7 years. He has a monthly readership of 100,000+ traders and has taught over 1,000 students since 2014. Vincent is also an experienced instructor and public speaker. Check out Vincent’s Professional Trading Course here.