Economic Indicator is any economic statistic, for
instance GDP, inflation rate or the unemployment rate that
points toward how well the economy is doing and how well the
economy is going to do in the future.
investors use this information to make decisions, or change
their strategies if a set of economic indicators suggest
that the economy is going to do better or worse in the
future than previously expected.
It is important to
understand the ways in which economic indicators differ
because there are three major attributes that each economic
to the Business Cycle / Economy Procyclic Economic Indicator
(such as the GDP), is one that moves in the same direction
as the economy. If the economy is doing well, this number is
increasing, and if the economy is not doing well this
indicator is decreasing.
Countercyclic Economic Indicator
(such as the unemployment rate) is one that moves in the
opposite direction as the economy. If the economy is doing
well the unemployment rate gets smaller and if the economy
is not doing well, this indicator gets larger.
Acyclic Economic Indicator
is one that has no relation to the health of the economy and
is generally of little use.
figures are released quarterly in most countries and the
unemployment rate is released monthly. Some economic
indicators, such as the Dow Jones Index, are available
immediately and change every minute.
Business Cycle Timing
Economic Indicators can be Leading, Lagging, or
Coincident which indicates the timing of their changes
relative to how the economy as a whole changes.
Leading Economic Indicators
are indicators which change before the economy changes.
Leading economic indicators are the most important type for
investors as they help predict what the economy will be like
in the future.
Economic Indicator are indicators that do
not change direction until a few quarters after the economy
Coincident Economic Indicators are indicators that
simply move at the same time the economy does.
There are 2 dimensions of Economic Indicators in terms of
coverage that e-forecasting offers: Geographic (GEO) and
(GEO) Economic Indicators
offers GEO Economic Indicators for: a
Country , a
State , a Province, a County, a
City , a group
of Countries, and Global
Economic Indicators .
Industrial Economic Indicators of the major industries such
as: Manufacturing, Mining,
Services, Construction, Semiconductor Industry
to more specific levels such as:
Auto Industry, Construction, Oil Extraction, Hotels,
Restaurants, Medical and more