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December 1, 2010

Analysis and Indicators Usage


Usage of the indicators, statistics, charts & graphs to reinforce an explained perspective and policy position is very common to discussions regarding deciphering economy and policy decisions. Just to ensure understanding that the discussion support data and indicators match the inferences made, here are the indicator definitions with a few examples of each type. 
Key statistics used to evaluate the direction of the economy (economic indicators). They are of three main types:


(1) Leading indicators (such as new orders for consumer durables, net business  formation, and share prices) that attempt to predict the economy's direction;
(2) Coincident indicators (such as gross domestic product, employment levels,  retail sales) that show up together with the occurrence of associated economic activity; and
(3) Lagging indicators (such as gross national product, consumer price index, interest rates) that become apparent only after the occurrence of associated economic activity.

http://www.businessdictionary.com/definition/economic-indicators.html
http://en.wikipedia.org/wiki/Economic_indicators