Assessing the state of an economy is not an easy task and generally involves interpreting myriad and sometimes contradictory indicators. In 2007 the authors unveiled a dynamic common factor model, dubbed the D6 Factor, for the economy of the Sixth Federal Reserve District. This model combined...

A revised version of the D6 Factor model of the southeastern economy is better than the original at describing contemporary economic activity and allows for historical comparisons across several business cycles.

The authors estimate a model that provides a single indicator for the southeastern economy, making it easier for policymakers and analysts to assess regional economic conditions and compare them to the broader economy.