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Economic Indicators
Written by Mansi   
Saturday, 10 December 2011 23:00

Economic Indicators are data or Statistics which are piece on information, usually of macro economic scale, that indicate the health of the economy.

The Economic Indicators are used by investors, analysts and economists to interpret and analyse the present situation and predict the future performance. It also helps in the study of business cycles.

Economic indicators include various data points, specific pieces of data released by government and non-profit organizations like :

  • The Consumer Price Index (CPI)
  • Gross Domestic Product (GDP)
  • Unemployment figures
  • Industrial Production Data
Economic indicators can be broadly classified as following :
A. Relating to business cycle/economy :
  • Procyclic: The Indicator moves in same direction as economy moves and vice versa. A positive relation is present here, GDP is better example.
  • Countercyclic: indicator moving in opposite direction showing negative relation. Unemployment is a good example.
  • Acyclic: indicator which does not affect by the economy there is no co-relation.
B. Timing
  • Leading: change before the economy changes, ex, stock market
  • Lagged: does not change direction until a few quarters after the economy does, unemployment
  • Coincident: which moves coincidently with the economy
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Last Updated on Monday, 12 December 2011 11:04
 

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