Posts Tagged ‘Economic Events & Indicators’

Economic Indicators – Leading the World Part 2

Hello Friends here we come up with an extension of our previous blog, ECONOMIC INDICATORS… “Leading the World” Part 1.

.

🙂

Economic Indicators - Leading the World Part 2

..

In previous Blog, we had touched upon the aspect like

what are Economic Events & Indicators and important sources of data provider for calculating & determining economic indicators.

.

However in this Blog, we would try to know about the classified categories of Economic indicators in details and what is Time Era.

.

Classified Categories:

.

1. Leading indicators:

.

These indicators are to forecast trends of the overall economy.

.

The indicators included in the figure are:

.

interest rate spread, M2 money supply, average manufacturing work week,

manufacturers’ new orders, S&P 500, average weekly unemployment claims,

vendor performance, housing permits, consumer expectations and

manufacturer’s new orders for non-defense capital goods.

.

🙂

.

2. Lagging indicators:

.

An indicator to generate transaction signals or to confirm the strength of a given trend.

It is a measurable economic factor, for example, corporate profits or unemployment that changes after the economy has already moved to a new trend.

.

🙂

.

3. Coincident indicators:

.

It provides information on the current state of the economy.

For example, coincident indicators move up when GDP is growing and down when GDP is shrinking.

.

This indicator varies directly with, and at the same time as, the related economic trend.

.

The four economic statistics comprising the Index of Coincident Economic indicators are

.

– Number of employees on non-agricultural payrolls,

– Personal income less transfer payments,

– Industrial production,

– Manufacturing and

Trade sales.

.

🙂

.

Time Era:

.

Knowing when each piece of information will be released is important to successful trading.

.

The economic calendars are found on many websites.

.

These figures helps to decide how to trade using these events, it can help explain unanticipated price actions during those periods.

.

These indicators play a vital role in determining the trend or movement of the stock market & the commodities futures.

.

It has been seen many times that when a positive data of these indicators like GDP or Industrial Production comes into picture & looks promising,

the trade of currencies like Euro, USD, INR; precious metals like Gold, Silver, base metals of Copper, Zinc, Lead show a positive move & short-term rally immediately.

.

Stay Tuned for more and more on this 🙂

.

However For More latest Industry,Stock Market and Economy News Updates, Click Here