Lets Know About Economic Indicators :)

Hello Friends here we come up with our another write up on “SMC Gyan Series”.


Lets Know About Economic Indicators


Topic is “Economic Indicators”.


Economic indicators are important as they provide an accurate account of nation‘s economy at various points of time.


There are various types of economic indicators that deal with different periods of time and there are others that deal with separate administrative divisions like states for example.


They are important in context of analyzing nation’s economy.


In this Blog, we would know what are major economic indicators ?


Major Economic Indicators :


1. Industrial Production:


Measures the change in the production of the nation’s factories, mines and utilities, industrial production.

Also measures the country’s industrial capacity utilization.

2. Gross Domestic Product (GDP):


Indicates the pace at which a country’s economy is growing or shrinking.

3. Purchasing Managers Index (PMI):


This index includes data on new orders, production, supplier delivery times, backlogs, inventories, prices, employment, export and import orders.

4. Producer Price Index (PPI):


Measures average changes in selling prices received by domestic producers in the manufacturing, mining, agriculture, and electric utility industries.

The PPIs most often used for economic analysis are those for finished goods, intermediate goods, and crude goods.

5. Consumer Price Index (CPI):


Measures the average price level paid by urban consumers (80% of the population in major currency countries) for a fixed basket of goods and services.

6. Durable Goods:


Measures new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods.

This figure is a useful measure of certain kinds of customer demand.

7. Employment Cost Index (ECI):


ECI counts the number of paid employees working part-time or full-time in the nation’s business and government establishments.

8.Retail Sales:


It is the indicator of broad consumer spending patterns and is adjusted for normal seasonal variation, holidays, and trading-day differences.

9. Housing Starts :


Measures the number of residential units on which construction is begun each month.

Thus to conclude Economic indicators is a tool for an investor for knowing the economic world.


It also simultaneously a tool to smartly make money out of the sensitive movements of the financial & commodities market.



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