What are the economic indicators?



What are the economic indicators?

An economic indicator is a statistic about an economic activity. Economic indicators allow analysis of economic performance and predictions of future performance.

There are several types of Economic Indicators such as

1.  Gross Domestic Product (GDP)

Gross domestic product (GDP) is a Primary Indicator to monetary measure of the market value of all final goods and services produced in a period (quarterly or yearly) of time.

2.  Nonfarm Payrolls (NFP)

Nonfarm payroll employment is a compiled name for goods, construction and manufacturing companies in the US. It does not include farm workers, private household employees, or non-profit organization employees.

3.  Unemployment Rate

The unemployment rate is the share of the labor force that is jobless, expressed as a percentage. It is a lagging indicator, meaning that it generally rises or falls in the wake of changing economic conditions, rather than anticipating them.

4. Federal Funds Rate

The federal funds rate is the rate at which depository institutions lend reserve balances to other banks on an overnight basis. Reserves are excess balances held at the Federal Reserve to maintain reserve requirements.

5.Consumer Price Index (CPI)

Consumer price index (CPI) measures changes in the price level of market basket of consumer goods and services purchased by households.

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