Economic Indicators

Whether you are a business manager, a business student, an investor, a policy maker, or a financial analyst, almost every market participant is eager to know the tendency of the economy and inflation. The Federal Reserve takes actions either to simulate or maintain the economy by responding the current economy signals accordingly. It is because factors greatly determine the course of the major financial markets and policies that market participants. This paper mainly focuses on three major elements of economic indicators. It first gave us a brief introduction of what economic indicators are and why are they so important in financial markets. Then, it introduced three major indicators with articles and news related to each of the category, giving us a general picture of what influences did those indicators bring to economy and what did we learn from interpreting those indicators. The three indicators are treasury department policies, productivity, and fiscal policies. Through indicators, market participants are able to efficiently respond to the future markets by making preparations in advance. Finally, it concluded with emphasis on the importance of economic indicators.

Global markets change day by day. Consumers, investors, politics, governments are eager to know what might happen in the future in order to derive the most effective decision-making. To get the best return on investments, to measure companies and products, to get a better picture of how the economy is performing, to make a judgment/ decision on news and choices…etc., these are some of the common reasons why economic figures have become so significant in our daily activities. Economic figures can be applied to demonstrate almost every aspect of phenomenon. Economic indicators are public statistics that help us interpret current market conditions as well as forecast market tendencies. The combination among all the factors is going to strongly influence the direction of major financial markets.