Definition: Trend component of a time series

Category: OECD - Data and Metadata Reporting

The trend is the component of a time series that represents variations of low frequency in a time series, the high and medium frequency fluctuations having been filtered out. This component can be viewed as those variations with a period longer than a chosen threshold. Usually 8 years is considered as the maximum length of the business cycle.
Task force on data and metadata presentation for the OECD Short-term Economic Statistics Working Party (STESWP), Paris, 2004 [quoted in Organisation for Economic Co-operation and Development (OECD), "Data and Metadata Reporting and Presentation Handbook", OECD, Paris, 2007]