Why State Leading Indicators?
It is important to look at the state level business cycle because they are not always in sync with the national cycle. Due to this, state leading indicators improve regional forecast accuracy in comparison to a single national leading indicator. Based on research by the Philadelphia Federal Reserve, only 15 states have had recessions that correspond to all four national downturns since 1979. At the same time, they found that there were 22 states have had at least one recession that did not correspond to a national recession. With this in mind, it is clear that getting a more granular look at the economy may prove to be beneficial to your business success.
