Economic Indicators
Economic indicators are statistics that measure current economic trends and are used to predict future economic activity. They are used by governments, businesses, and investors to make decisions about economic policy, investments, and other economic activities. Economic indicators can include measures of economic growth, such as gross domestic product (GDP), inflation, unemployment, and balance of payments. They can also include measures of consumer confidence, such as consumer sentiment, consumer spending, and consumer price index (CPI).
History of Economic Indicators
The use of economic indicators dates back to the early 19th century, when governments began to collect and analyze data to better understand the state of their economies. In the United States, the first economic indicator was the Consumer Price Index (CPI), which was created in 1919. Since then, the use of economic indicators has grown significantly, and today there are hundreds of economic indicators that are used to measure and analyze the performance of economies around the world.
Comparison of Economic Indicators
| Indicator | Description |
|---|---|
| GDP | Gross Domestic Product measures the total value of goods and services produced in a country. |
| Inflation | Inflation measures the rate of increase in the prices of goods and services. |
| Unemployment | Unemployment measures the percentage of people in the labor force who are not employed. |
| Balance of Payments | Balance of Payments measures the difference between a country’s imports and exports. |
| Consumer Sentiment | Consumer Sentiment measures how consumers feel about the economy and their own financial situation. |
| Consumer Spending | Consumer Spending measures how much money consumers are spending on goods and services. |
| Consumer Price Index (CPI) | Consumer Price Index measures the average change in prices of goods and services. |
Summary
Economic indicators are important tools for understanding the current state of the economy and predicting future economic activity. They can include measures of economic growth, such as GDP, inflation, unemployment, and balance of payments, as well as measures of consumer confidence, such as consumer sentiment, consumer spending, and consumer price index (CPI). For more information about economic indicators, visit the websites of the U.S. Bureau of Economic Analysis, the International Monetary Fund, and the World Bank.
See Also
- Gross Domestic Product (GDP)
- Inflation
- Unemployment
- Balance of Payments
- Consumer Sentiment
- Consumer Spending
- Consumer Price Index (CPI)
- Interest Rates
- Exchange Rates
- Stock Market Indexes
