ECONOMIC INDICATOR

Question 1

Leading economic indicators

Answer 1

These indicators are used to forecast at what stage the economy will be in, at some time in the future.
Examples include:
 Stock market index
 Index of business confidence
 Manufacturers’ new orders
 New building permits for private housing
 The money supply

Question 2

Coincident economic indicators

Answer 2

These indicators are events and measures that occur at the same time as a peak or trough occurs.
Examples include:
 Gross Domestic Product (GDP)
 Number of people in employment
 Industrial production
 Personal incomes
 Manufacturing and trade sales