Tuesday, January 4, 2011

Post 15: Economic Indicators

Leading Indicators:

1.  Building Permits
2.  Unemployment Insurance Claims
3.  Stock Prices

These indicators forshadow what is going to happen to the overall economy. For example if stock prices are falling, the economy usually goes throught a downturn or even a recession like today.

Coincident Indicators:

1.  Non-Agricultural Employment
2.  Personal Income
3.  Industrial Production

These indicators show how the economy is doing in its current state. For example, if personal income is higher overall, the economy is in a stronger state.

Lagging Indicators:

1.  Average Duration of Unemployment
2.  Average Prime Rate charged by banks
3.  The value of outstanding commercial and industrial loans

These indicators show patterns in the economy and can predict how and economy will do. For example, if the value of outstanding loans is lessening, the economy will most likely get better because businesses are making more profit to pay off loans.

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