Economic indicators in the states

During this century the Kansas economy has not kept up with the national economy and most neighboring states.

The Federal Reserve Bank of Philadelphia calculates two indexes that track and forecast economic activity in the states and the country as a whole.

Economic Indicators in the States ExampleThe coincident index is a measure of current and past economic activity for each state. This index includes four indicators: nonfarm payroll employment, the unemployment rate, average hours worked in manufacturing, and wage and salary disbursements deflated by the consumer price index (U.S. city average). July 1992 is given the value 100. 1

The leading index predicts the six-month growth rate of the state’s coincident index. In addition to the coincident index, “the models include other variables that lead the economy: state-level housing permits (1 to 4 units), state initial unemployment insurance claims, delivery times from the Institute for Supply Management (ISM) manufacturing survey, and the interest rate spread between the 10-year Treasury bond and the 3-month Treasury bill.” 2

Positive values mean the coincident index is expected to rise in the future six months, while negative values mean it is expected to fall.

I’ve created an interactive visualization of these two indexes. Examples appear nearby. Click here to use the visualization in a new window.

  1. Federal Reserve Bank of Philadelphia. State Coincident Indexes – a monthly coincident index for each of the 50 states. Philadelphiafed.org. Available at www.philadelphiafed.org/research-and-data/regional-economy/indexes/coincident.
  2. Federal Reserve Bank of Philadelphia. State Leading Indexes – current & future economic situation of 50 states with special coverage of Pennsylvania, New Jersey, & Delaware. Philadelphiafed.org. Available at www.philadelphiafed.org/research-and-data/regional-economy/indexes/leading.

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