The FAST® (Financial Analyst’s Survey Trend) Indicator, which combines macroeconomic and sector expectations over the next six months.
Macrometria’s FAST indicator is built as a weighted average of responses to questions on the expectations about the economy as a whole and each sector individually. Macrometria’s FAST Indicator is a diffusion index which indicates the degree to which a change is scattered or diffused throughout the sample population. Respondents indicate in each month if specific variables increased, decreased, or remained unchanged from the previous month. The indices are calculated as the sum of the percentage of respondents who answered “Rise” and half the percentage of respondents who answered “No change”.
A value of 50 points to expectations of a stagnation, a value above 50 indicates expectations of growth expectations and a value below 50 points to a contraction. The further the index is away from 50, the greater the rate of change. Thus, a rate of 60% indicates a faster rate than an increase rate of 55% (growth expectations are more widespread in the population), and a rate of 35% indicates a faster rate of decrease than an rate of 40%. A value of 100 indicates all respondents reported expectations of an increase in activity while 0 indicates that all respondents reported expectations of a contraction.