A useful tool to identify recessions in the euro-area

A useful tool to identify recessions in the euro-area

Series: Working Papers. 0419.

Author: Pilar Bengoechea y Gabriel Pérez-Quirós.

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Abstract

This paper investigates the identification and dating of the European business cycle, using different methods. We concentrate on methods and statistical series that provides timely and accurate information about the contemporaneous state of the economy in order to provide the reader with a useful tool that allows him or her to analyze current business conditions and make predictions about the future state of the economy. In this spirit, we find that the European Commission industrial confidence indicator (ICI) is useful in providing that information.

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