Terms

Economic Indicator

Economic Indicators are metrics used to assess, measure, and evaluate the overall state of health of the macroeconomy. These indicators allow for the analysis of economic performances and attempt to give a prediction of future performances in the economy. Economic indicators can be divided into two main categories: leading indicators and lagging indicators. Leading indicators tend to precede trends — changing before the whole economy changes. Lagging indicators confirm and coincident with trends — changing after the economy has changed. The most common types of economic indicators include the GDP, stock market, unemployment rate, Consumer Price Index (CPI), Producer Price Index (PPI), balance of trade, housing starts, interest rates, currency strengths, and consumer spending.

  • Remember that many economic indicators  can be backward looking and misleading
    • Positive backward looking indicators carry no weight with regards to future economic activity



Fuel consumption and economic activity go together like Starsky and Hutch.