Economic Indicators Explained in One Minute From Forex Stock Trading to Macroeconomics

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Economic Indicators Explained in One Minute From Forex Stock Trading to Macroeconomics

One Minute Economics · ⏱ 1:24 · 54.1K مشاهدة · 8 years ago

📺 شاهد كل صفحات قناة "One Minute Economics"

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think of economic indicators as pieces of puzzle they tell you something specific and together help you create an accurate picture of reality there are three broad types of indicators one leading indicators which tend to change before the economy as whole changes building permits are good example because if you notice that people in companies have less and less of an appetite for building it's warning sign that economic activity is slowing down other examples include share prices net business formations and the money supply two lagging indicators which tend to change after the economy changes the unemployment rate is decent example because when jobs are scarce it's clear that's happening because the economy was already going through rough patch other examples include the Consumer Price Index default rates and interest rates three coincident indicators which change it pretty much the same time as the economy the GDP is good example if you want snapshot of the economy whereas other examples include non-farm payrolls and personal income an individual ual indicator usually doesn't tell you enough on its own and as such conclusion should be drawn after analyzing multiple indicators for example if this year's GDP is higher than last year's but building permits are on downward slope you might have valid reasons to worry that economic growth will slow down or if the unemployment rate is currently High something like growing net business formation numbers can give you hope and so on