What is a five-year moving average?

A five-year moving average is a statistical calculation used to analyze data over time by averaging values from a specified five-year period. It smooths out fluctuations and trends in the data by taking the average of the most recent five years and updating it as new data becomes available. This method helps identify patterns or trends by minimizing the impact of short-term variability. It's commonly used in various fields, such as economics and finance, to forecast future performance.