The Dow Jones is introducing an Economic Sentiment Indicator (ESI). Testing has shown ESI to be a leading indicator of a variety of measures of U.S. economic performance, based on the tone of economic reporting in 15 major daily newspapers.
Expressed on a numerical scale from 1 to 100, the ESI eflects optimism in economic references when its number falls on the higher end.
Dow Jones reports that, in extensive back-testing, the ESI has proven to be a reliable leading indicator of a variety of measures of U.S. economic performance. When operating as a leading indicator, the ESI has tended to move up or down in advance of changes in key measures of economic performance.
The April ESI will be released tomorrow morning at 9:45 Eastern Time.
Find the ESI tomorrow on the Dow Jones Web site.