economic indicator


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Indicator

A signal of a security's or the broader economy's health. An indicator may cause a company's stock to rise or fall in price. Indicators can be technical or fundamental in nature. There are three basic types of indicator. A leading indicator occurs before an event or trend takes place, and is thought to be predictive. A coincident indicator happens at the same time as the general trend. Finally, a lagging indicator occurs after the trend is well established, and is thought to confirm it. See also: Signal.

economic indicator

A variable such as the unemployment rate or volume of help-wanted advertising that indicates the direction of the economy.

Economic indicator.

Economic indicators are statistical measurements of current business conditions.

Changes in leading indicators, including those that track factory orders, stock prices, the money supply, and consumer confidence, forecast short-term economic strength or weakness.

In contrast, lagging indicators, such as business spending, bank interest rates, and unemployment figures, move up or down in the wake of changes in the economy.

The Conference Board, a nonprofit business research firm, releases its weighted indexes of leading, lagging, and coincident indicators every month.

Though the individual components are also reported separately throughout the month, the indicators provide a snapshot of the economy's overall health.

References in periodicals archive ?
With so many people poised to react to the same information, economic indicators have tremendous potential to generate volume and to move prices.
Of the 11 economic indicators comprising of the coincident index for March, nine were available for the preliminary report.
Of the 11 economic indicators comprising the coincident index, nine were available for the preliminary report.
Of the 11 economic indicators comprising the coincident index for November, nine were available for the preliminary report.
economic trend by analyzing economic indicators due out in the latter half of the week.
The index of coincident economic indicators reflecting the current state of the economy was also revised downward from 83.3 percent to 75.0 percent, while the index of lagging indicators, designed to measure economic performance in the recent past, was cut from 87.5 percent to 70.0 percent.
Of the 11 economic indicators used to calculate the coincident index, nine were available for the preliminary report, of which eight posted positive readings.
The leading index of diffusion economic indicators, which predicts economic activities about six months down the road, stood above the boom-or-bust line of 50 percent for the third consecutive month.
The index of leading economic indicators, which predicts economic activities about six months down the road, was revised upward to 63.6 percent for June from the preliminary reported 60.0 percent.
The index of coincident economic indicators was revised to 60.0 percent for May from the initially announced 55.6 percent.
The index of coincident economic indicators stood at 33.3 percent, the Cabinet Office said in a preliminary report, citing weak production amid lingering adjustments in the information-technology sector, particularly electronics parts and devices.
If the index of coincident economic indicators, due to be announced next Tuesday, slips below the 50 percent line for the third straight month, economists will think the nation's economy has entered a contraction phase.

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