KirkLindstrom.com - Articles - 2012  - ECRI:  How to Calculate WLI Growth from ECRI's Weekly WLI Data Series
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                Windsurfing at Palo Alto in SF Bay in May 2009  How to Calculate WLI Growth Rate
 
Formula for ECRI's WLI Growth Rate
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                Windsurfing at Coyote Point November 2009
 
Chart of Average Annual CPI Inflation Rate
 

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December 1, 2012ECRI's weekly Excel spreadsheet , published here, includes the U.S. WLI (Weekly Leading Index) and  WLI Growth Rate series.  WCRI's WLI growth is a series of raw numbers in the spreadsheet without the underlying calculations.  The exact formula to calculate ECRI's WLI growth rate comes from a 1999 article1 published by Anirvan Banerji, the Chief Research Officer at ECRI.                        Article: Beware of Annuities
 
 

Here is the formula:  
WLIg = [m*(MA1/MA2)^n] – m

"MA1" = 4 week moving average of the WLI
"MA2" = moving average of MA1 over the preceding 52 weeks
"n"= 52/26.5
"m"= 100

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Here is my most recent chart of WLI and WLI growth published in my Seeking Alpha article, "ECRI Says Recession Began In July, Rising SPY Could Point To A Recovery Ahead"

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note 1.  Source:  The formula comes from an article published in 1999 by Anirvan Banerji, the Chief Research Officer at ECRI, titled "The three Ps: simple tools for monitoring economic cycles - pronounced, pervasive and persistent economic indicators."

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