Economic Indicators

An economic indicator is a number that is believed to indicate something about the economy. It could be anything: housing starts, employment changes, consumer confidence, etc. There are also indicators specific to particular industries. The airline industry would have a different set than auto manufacturers or real estate agents.

A leading indicator is a number that changes before the economy changes. That is, an increase in new housing starts is often seen as a good sign because it means more people will be employed, more stuff will be bought at building supply stores, etc.

A current or coincident indicator is a number that changes with the economy. What the stock market is doing might be a current indicator, though it could also be seen as a leading indicator.

A lagging indicator is a number that changes after the economy has changed.

In real estate, for example, the number of people the agent knows is a leading indicator. As the agent's sphere grows in size, the more likely it is for the agent's business to increase down the road due to an increase in referrals.

What do you think? I want to know, so come and post a comment.

Entrepreneurship informs all my professional activities. For entrepreneurial real estate go to www.yourstopforrealestate.com/blog and for entrepreneurial writing, go to www.kearneymusicschoolmurders.blogspot.com.