Methods and standards / Concept Glossary / Harmonised expectation indicator (called Expectations)
Concept selected: Harmonised expectation indicator (called Expectations)
Definition
The Harmonised Expectation Indicator (known as the Expectations) includes the difference or balance between the percentages of favourable and unfavourable responses with regard to the coming quarter. It may fluctuate between -100 (all respondents are pessimistic, that is, they have ticked the Unfavourable box regarding the next quarter) and +100 (all respondents are optimistic, that is, they have ticked the Favourable box).An intuitive interpretation thereof is simple and direct. If the Expectations are positive, the optimists exceed the pessimists with regard to the coming quarter.
Source
Business Confidence Indicators. MethodologyTopic
Statistical operations
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