Both of these features create considerable value for measurement, and diffusion index
summaries provide a way of drawing comparisons over time and across regions, bringing us to our central question: How do the survey indexes compare with official employment statistics and other measures of regional economic performance?
Next, we explore how the unique adjustments we make to the formula for a traditional diffusion index
affect its properties.
For the case of employment in the Fifth Federal Reserve District, we show that changes in this extensive margin, measured by a synthetic diffusion index
constructed from observed data, accounts for the bulk of changes in aggregate employment growth.
This quarter's diffusion index
, which measures lenders sentiment towards US commercial lending, showed a moderate increase compared to last quarter's significant decrease.
The diffusion index
of consumer sentiment regarding current economic conditions stood at minus 8.
The BSP based its conclusion on survey results that showed that the diffusion index
for credit standards covering both corporate and individual borrowers stood at 0 in the third quarter.
Using these data series, the Philadelphia Fed constructs an index for each state, as well as a diffusion index
that summarizes economic activity across the states.
It is important to point out from the outset that this paper is not intended to rule out any diffusion index
as being completely unimportant in constructing NMPMI, but rather to determine the relative importance of these individual indicators based on an analysis of the internal structures of the data.
The diffusion index
is the difference between the ratio of positive ("better") and negative ("worse") responses.
A diffusion index
is calculated as the percentage of respondents reporting an increase plus one-half of the percentage reporting no change.
As a consequence, the NAPM-NY non-manufacturing diffusion index
, which measures the industry breadth of expansions and contractions, rose from a reading of 57.
The large manufacturers, whose views are seen as the most critical commentary on the Japanese economy, pushed their part of the Tankan's critical Diffusion Index
(DI) to a reading of +11--its highest level in six and a half years and the second straight quarter of improvement.