The Jacobsen derived its leather demand index by using an oscillator that captured an index from 1-100.
The index is created from year over year changes to each of 4 time series.

• Car sales data using a multiplier which includes the percentage index of leather construction is weighted by approximately 14%.
• Year-over-year leather furniture sales is weighed by approximately 18%.
• Chinese exports of shoes is evaluated along with –
  US sales of shoes that are leather – which is then weighted by approximately 68%.

The volatility experience in Chinese markets has taken a back seat to a potential Fed interest rate move. Chinese stocks continue to make headlines on a daily basis and this issue might only be exacerbated by an increase in short term interest rates by the Federal Reserve.