To know economic indicators, we have to comprehend the ways that economic indicators differ.
You will find three major attributes each economic indicator has:
Regards to the company Cycle / Economy
Economic Indicators might have 1 of 3 different relationships towards the economy:
Procyclic: A procyclic (or procyclical) economic indicator is a that moves within the same direction because the economy. Therefore if the economy does well, the dpi is generally growing, whereas if we are inside a recession this indicator is decreasing. The Gdp (GDP) is one particualr procyclic economic indicator.
Countercyclic: A countercyclic (or countercyclical) economic indicator is a that moves within the other direction because the economy. The unemployment rate will get bigger because the economy will get worse so it’s a countercyclic economic indicator.
Acyclic: An acyclic economic indicator is a which has no regards to the healthiness of the economy and it is generally of little use. The amount of home runs the Montreal Expos hit each year generally doesn’t have relationship to the healthiness of the economy, so let’s imagine it’s an acyclic economic indicator. Frequency from the Data
In many countries GDP figures are freed quarterly (every three several weeks) as the unemployment rates are released monthly. Some economic indicators, like the Dow jones Johnson Index, can be found immediately and alter every minute.
Economic Indicators could be leading, lagging, or coincident which signifies the timing of the changes in accordance with the way the economy in general changes.
Leading economic indicators are indicators which change prior to the economy changes. Stock exchange returns really are a leading indicator, as the stock exchange usually starts to decline prior to the economy declines plus they improve prior to the economy starts to pull from an economic depression. Leading economic indicators are the most crucial type for investors because they help predict exactly what the economy is going to be like later on.
Lagged: A lagged economic indicator is a that doesn’t change direction until a couple of quarters following the economy does. The unemployment rates are a lagged economic indicator as unemployment has a tendency to increase for two or three quarters following the economy begins to improve.
Coincident: A coincident economic indicator is a that merely moves simultaneously the economy does. The Gdp is really a coincident indicator.
Listing of Economic Indicators
Gdp (GDP) (nominal and real) (for the whole nation or per individual)
Index of Leading Indicators
Gross national happiness (GNH), a brand new concept relating happiness with economic growth
Labor Pressure: Employment rate, Average Weekly earnings Public Expenditure, Revenues, Budget Surplus and Deficit, National Debt Personal Earnings, Expenditure, Savings
Worldwide: Balance of Payments & Balance of Trade
Manufacturing output, Capacity Utilization, Inventories Money Supply, Rates Of Interest, Yield on various financial Instruments and Yield Curves.
Stock Exchange Indices Inflation, CPI, Producer Cost Index New House Sales
Retail Sales, Auto Sales
Lagging indicator, a historic indicator following a celebration which reacts gradually to economic changes Genuine Progress Indicator, an idea in eco-friendly financial aspects and welfare financial aspects that’s been recommended like a substitute metric for gdp