The growth engine of the economy and the stock market. It all comes down to the data. The indicators provide a valuable look into the growth of the economy. Are we moving forward or backward?
Indicators are an important tool investors use to measure the growth or decline of the economy. the indications are the heartbeat of the economy. They give the pulse of the direction of the economy. There are two types of indicators, leading and lagging.
A leading indicator foresees what should be happening in the future. Examples are yield curve, fiscal policy, monetary policy, Consumer Confidence (CCI), jobless claims, housing starts, durable goods and purchasing price index. They are forecasting the future.
Lagging indicators are just the opposite. They tell us where the economy has been. They are looking back in time. They confirm where we have been. Lagging indicators include corporate profits, interest rates, CPI, PPI, GDP, labor costs and balance of trade.
Here are some of the most important indicators to keep to watch. We will have a link to each one to discuss the reason they are important.
- GDP
- CPI and PPI
- Yield Curve
- Trade Balances
- Unemployment
- Consumer Confidence
- Existing Home Sales
- Employment spending
- Inflation
- Interest Rates
- Industrial Production
- Retail Sales
- Building Permits
- Index of Indicators
Here is a great calendar to help you figure out the next releases for many of the data elements.
https://www.bls.gov/schedule/2023/02_sched.htm
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