Economic Indicators

Economists make judgments about where in the business cycle the economy is by examining economic indicators. Economic indicators are statistics that summarize different aspects of the economy. The unemployment rate, the Consumer Price Index (CPI), and the gross domestic product (GDP) are all economic indicators.

Economic indicators are used to assess the future, current, and historical performance of the economy. The Federal Reserve uses economic indicators in making decisions about monetary policy.

There are three types of economic indicators: leading, coincident, and lagging.

1. 1. Leading indica