Question

economic assignment What is an economic Indicator list and describe 5 economic indicators how does the government and business use economic indicators what do economic indicators reveal about the state the Canadian economy? ps.2-3 pages in length

Answer 1

An economic indicator is a statistic about economic activity. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles. Economic indicators include various indices, earnings reports, and economic summaries: for example, the unemployment rate.

They are of three main types:

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

5 economic indicators are :-  

• Personal income and outlays report

The personal income and outlays report is released about a month following the month surveyed, usually on the last day of the month or the first business day of the next month.

This report measures consumers’ income and how much they are saving — plus, how much they’re spending and where they’re spending it. The personal income and outlays report does come out later than other indicators, so it doesn’t generate as much interest as reports released earlier in the reporting cycle, such as the retail sales report.

• Retail sales

The retail sales report is released about two weeks after the month surveyed ends.

It measures all the retail sales for the month — but not only to consumers. The report does include some nonconsumer elements. Though the retail sales report does reveal whether consumers are spending or whether that spending is dropping off, the report is subject to large revisions.

• Consumer Price Index

  The Consumer Price Index, or CPI, is released every month, usually two or three weeks after the month surveyed.

  Economists focus on two CPI numbers. One is the overall CPI and the other is the core CPI, which is the overall number minus vital products such as oil and food products, which are excluded because of their price volatility.

• New-home sales

  The new-residential-sales report is released three or four weeks following the month surveyed.

  New home sales have a bigger impact on GDP than do existing home sales, even though sales of new homes make up only 15 percent of the entire housing industry — even less than that for 2008. New home sales accounted for less than 10 percent of all sales last year, according to data from the National Association of Realtors’ existing home sales report and the new residential sales report released by the U.S. Census Bureau.

• Employment situation

  A big daddy of economic reports is the employment report. It is released on the first Friday of the month following the month surveyed.

  The employment report actually comprises a couple of different surveys. One is the household survey in which households are called and asked questions about their employment status.

  For anyone with an interest in the economy or investing, getting to know some of the economic reports can be illuminating.

  “Frankly if you are an investor and you make the effort, chances (are) you will make the right decision more than 50 percent of the time,” says Baumohl. “And if you make the right choices more than 50 percent of the time, then you’re doing it correctly.

Government agencies are usually considered the authority on economic indicators. Individuals and businesses often use economic indicators to make financial decisions. These decisions can relate to making financial investments, saving money, acquiring new assets or other important decisions.

health of key aspects of Canada's economy: consumer spending, housing, manufacturing, employment, inflation, external trade, and economic growth. Taken together, they provide a comprehensive picture of the state of the Canadian economy.