Economic Indicators

Economic Indicators: Economic indicators are portions of data that show the trend for a particular economy that will influence share prices. Investors use these pieces of information to estimate and interpret investments for present and future and assess the total health of an economy. Data released by governmental agencies and non profit organizations is usually taken into consideration.
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Common examples include Gross Domestic Product (GDP), Employment figures, Imports and exports, agricultural and industrial production etc. Any economic indicator is useful if one utilizes it carefully.

Any one indicator will be no good for any kind of economic prediction but using a set of indicators can give a good idea about any prospective investment. Such indicators allow an in depth analysis of current performance of an economy and paves way to predict future performances as well. There are basically 3 types of indicators that can help an investor in making long term investment decisions; leading indicators (data that helps in making important economic decisions), coincidental indicators and lagging indicators (influencing leading and coincidental indicators.

Edited and Updated 15th February 2014

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