2011 - The Current Economic Indicators and the Economy Growth in 2011

Internationally, the United States is considered as the most powerful and the largest economy as per the current economic indicators and the economy growth in 2011. The US economy is hugely based on financial market behavior where business firms and private individuals make the decisions. There are a few key economic indicators that predict the future of a particular economy. Economic indicators which are important are Inflation, Gross Domestic Product (GDP), Employment and Unemployment etc.

These indicators should achieve the main goal set by the Federal Reserve of putting monetary targets for economy growth. The current economic indicators and the economy growth in 2011 predict the growth of economy in the coming future. When the recession started, the current economic indicator changed to negative. This was a sure sign of economic downfall. Therefore, the economic health of the country is greatly affected by the current economic indicators.

The definition of economic health means the business growth, employment rate, currency value and many other things. So, for predicting the future it is of great importance to study the economic indicators of the current times. At present the statistics show that Gross Domestic Product of USA shows $ 48,000 per capita. As per the report of Economic Analysis Bureau there was an increase of 2.6 percent annual Gross Domestic Product (GDP) during the 3rd quarter of 2010. The current economic indicators and the economy growth in 2011 depict that jobs and business have grown substantially.

The rise in GDP is an indication that the business firms are hiring employees and investing. These indicators are basically government released statistics which indicate health and growth of the country especially in the economy front. They influence the currency value of the country. Indicators based on the types of predictions consist of 3 kinds.

Coincident indicator: This indicator occurs in cycle with any economic event. It happens simultaneously with the conditions that it signifies. Company payrolls are an example of this coincident indicator. This is because the payments are made and simultaneously it increases the local economy. Personal income is another example. Strong economy will coincide with high rates of personal income. Although they cannot predict the events of future yet they can change with economy and time of stock market.

Leading indicator: These are the events which take place exactly before the economic shift. For the forecast of future events, they are very instrumental. Immense accuracy is exhibited by the leading economic indicator within the finance world. Bond yields are the example of this indicator.

Lagging indicators: The indicator that basically follows event is called lagging indicator. Generally, it is an event that occurs after the happening of corresponding economic cause. For instance, amber light can be said as lagging indicator intended for green light. This is because it trails the green light. The example of this indicator is unemployment. This is due to the fact that when there is an economic downfall the rate of unemployment increases. Hence, it can be concluded that the Current Economic Indicators and the Economy Growth in 2011 are co-related



Tag:-market analysis real estate, how to find real estate investors, real estate forecasts, market research real estate, real estate growth, real estate technology, real estate market trends,leading economic indicators

Economic Indicators

To understand economic indicators, we must understand the ways in which economic indicators differ.

There are three major attributes each economic indicator has:
Relation to the Business Cycle / Economy
Economic Indicators can have one of three different relationships to the economy:
Procyclic: A procyclic (or procyclical) economic indicator is one that moves in the same direction as the economy. So if the economy is doing well, this number is usually increasing, whereas if we're in a recession this indicator is decreasing. The Gross Domestic Product (GDP) is an example of a procyclic economic indicator.
Countercyclic: A countercyclic (or countercyclical) economic indicator is one that moves in the opposite direction as the economy. The unemployment rate gets larger as the economy gets worse so it is a countercyclic economic indicator.
Acyclic: An acyclic economic indicator is one that has no relation to the health of the economy and is generally of little use. The number of home runs the Montreal Expos hit in a year generally has no relationship to the health of the economy, so we could say it is an acyclic economic indicator. Frequency of the Data
In most countries GDP figures are released quarterly (every three months) while the unemployment rate is released monthly. Some economic indicators, such as the Dow Jones Index, are available immediately and change every minute.
Timing
Economic Indicators can be leading, lagging, or coincident which indicates the timing of their changes relative to how the economy as a whole changes.
Leading:
Leading economic indicators are indicators which change before the economy changes. Stock market returns are a leading indicator, as the stock market usually begins to decline before the economy declines and they improve before the economy begins to pull out of a recession. Leading economic indicators are the most important type for investors as they help predict what the economy will be like in the future.
Lagged: A lagged economic indicator is one that does not change direction until a few quarters after the economy does. The unemployment rate is a lagged economic indicator as unemployment tends to increase for 2 or 3 quarters after the economy starts to improve.
Coincident: A coincident economic indicator is one that simply moves at the same time the economy does. The Gross Domestic Product is a coincident indicator.

List of Economic Indicators
Gross Domestic Product (GDP) (nominal and real) (for the entire nation or per individual)
Index of Leading Indicators


Gross national happiness (GNH), a new concept relating happiness with economic growth
Population
Labor Force: Employment rate, Average Weekly earnings Public Expenditure, Revenues, Budget Surplus and Deficit, National Debt Personal Income, Expenditure, Savings
International: Balance of Payments & Balance of Trade
Productivity Survey
Manufacturing output, Capacity Utilization, Inventories Money Supply, Interest Rates, Yield on various financial Instruments and Yield Curves.
Stock Market Indices Inflation, CPI, Producer Price Index New Home Sales
Retail Sales, Auto Sales
Lagging indicator, a historical indicator following an event which reacts slowly to economic changes Genuine Progress Indicator, a concept in green economics and welfare economics that has been suggested as a replacement metric for gross domestic product

Tag:-market analysis real estate, how to find real estate investors, real estate forecasts, market research real estate, real estate growth, real estate technology, real estate market trends,leading economic indicators

Economic Indicators Guide

Economic indicators are regularly released governmental statistics that indicate the growth and health of a country especially its economy. Economic indicators mostly influence the value of a country's currency. These are key statistics that show the direction of the economy. The Trade Deficit, the Gross National Product (GNP), Industrial Production, the Unemployment Rate, Inflation Rate, Factory Utilization Rate and the Business Inventories are instances of economic indicators.

Economic indicators are used to analyze the economic behavior of a country and predict the manner in which economy will act in near future. On the basis of types of predictions economic indicators are of three kinds:

· Coincident economic indicator

· Leading economic indicator

· Lagging indicators

A coincident economic indicator happens in tandem with an economic event. This indicator occurs at approximately the same time as the conditions they signify. The paradigm instance of it is company payrolls. These payrolls are coincident indicators because they make payment and simultaneously increase the localized economy. Personal income is also a coincidental indicator for the economy. High personal income rates will coincide with a strong economy. The coincident indicators do not predict future events but change with a change in time and economy of the stock market.

A lagging indicator is one that follows an event. This indicator is an event, which happens after the corresponding economic cause occurs just like the amber light is a lagging indicator for the green light as amber trails green. The unemployment rate of a country is an example of a lagging indicator because as the economy is doing badly or companies are expecting a downturn in the economy, the unemployment rate increases accordingly. Media is also a lagging economic indicator for the news is always reported few hours before the actual economic fluctuation that they point to. A lagging indicator is immensely significant because of its ability to confirm that a pattern is happening or about to occur.

Leading indicators are events that take place right before an economic shift. The leading indicators are instrumental in forecasting future events. The leading indicators exhibit immense accuracy in the world of finance. An example of leading indicators is the bond yields. Bond yields are leading indicators of the stock market because on behalf of these bond traders anticipate and further course of the stock market and economy of the country.

However in economics the classification of several factors is subject to debate. For instance according to some people the Federal Reserve is a leading indicator while for others it is a lagging indicator. The trend of the market indicates either that the market reacts to the Federal Reserve changing interest rates or that the Federal Reserve changes interest rates only in response to the market. Seeing practically the Federal Reserve can be viewed as both a leading and lagging indicator.

Every week dozens of economic surveys are conducted and several economic indicators are released. In order to understand the current and future of the market and so enjoy a successful business, it is very important for all the investors to crack the economic indicators skillfully.



Tag:-market analysis real estate, how to find real estate investors, real estate forecasts, market research real estate, real estate growth, real estate technology, real estate market trends,leading economic indicators

Five Leading Economic Indicators That Drive Forex Trading

Several different factors affect the Forex market. When learning to trade it is of utmost importance to know and understand the various factors that cause the Forex market to fluctuate from day to day. The changes in foreign exchange market depend on the several economic factors that play a role in the movement of currency.

Economic reports and indicators released by the government or by private organizations express the economic performance of a country. These indicators measure a country's economic health, in addition to government policies and current events.

Most of the time, an experienced reputable broker can give advice on which trades will be the best based on such economic indicators. Reports analysing these indicators are released at scheduled times and can tell if a certain country's economy is experiencing improvement or if it is on the decline.

1. Current events and the state of the economy is one of the top economic indicators used when analyzing the Forex. Unemployment numbers, housing statistics and the current state of a country's government can affect the Forex market and the prices will reflect this. When a nation experiences political unrest, higher unemployment rates and inflation, the rate of the currency will be affected. Sometimes, this indicator tends to be overlooked, but it can serve as an important gauge in the fluctuations of the Forex market.

2. The gross domestic product, also called GDP, is another economic indicator that is used when looking at the foreign exchange market. The GDP is considered the widest and broadest measure of the economy in a country. The gross domestic product represents the total monetary value of all goods and services produced within any given country over a specified period. It is usually measured on a yearly basis but quarterly stats are also released. This indicator is not used alone when forecasting the Forex. Usually the gross domestic product is considered a lagging indicator, meaning that it is a measurable factor that changes after the economy has already began to follow a certain trend. The most recent GDP figures have high importance to the markets because they indicate the pace at which a country's economy is growing or shrinking.

3. The third economic indicator often used in analyzing the Forex is the retail sales reports. This indicator tracks the merchandise sold by companies within the retail trade, measuring the total consumer spending on retail sales in any country. Retail revenues are a major part of most countries economy. This is a very reliable and important economic indicator because it shows consumer spending patterns and confidence that may indicate increased economic activity throughout the year. This factor is usually more important than lagging indicators and give a clear picture of the state of the economy in any country.

4. The industrial production report is another reliable economic indicator in the foreign exchange market. It measures the change in the production of a nation's factories, mines, and utilities. The report also measures the industrial capacity and how many of the available resources are being used. (Production capacity utilization) When a country's production is at maximum capacity, it is considered an ideal condition and does positively affect the Forex market.

5. The last important economic factor in analyzing the Forex is the consumer price index or the CPI. The consumer price index is the measure of the change in the prices of a basket of consumer goods and services. Considered the most widely used measure of inflation the CPI is also regarded as an indicator of the effectiveness of Government policy. It can tell whether or not a country is making or losing money on their products and services. A rising CPI indicates inflation.



Tag:-market analysis real estate, how to find real estate investors, real estate forecasts, market research real estate, real estate growth, real estate technology, real estate market trends,leading economic indicators

The Las Vegas Taxi Industry As a Leading Economic Indicator?

Despite the fact that the U.S. economy continues to suffer through an anemic recovery from a deep recession, there are modest signs of life in Las Vegas. Visitors are slowly returning, although the economic challenges of the past few years have changed the way people behave (read spend) during the course of their visit. This is certainly to be expected and the tourism industry in southern Nevada is just happy to see people coming back slowly but steadily, even if the good old days are still very far out of reach.

Traffic at McCarran Airport continues to improve steadily with June posting the best numbers in almost four years. Through May of this year visitation numbers have increased incrementally for fifteen straight months, another sign that Las Vegas hasn't lost its power to attract recreational attention (and dollars). Even gaming revenue numbers experienced a modest surge this spring, although it is hard to tell if this is sustainable through the remainder of the year.


 In any event, the preponderance of evidence strongly suggests that the Las Vegas Strip is slowly coming back to life. As a corollary to this modest rebound in tourism related activity, the real estate market in Nevada continues to attract aggressive cash buyers hunting for hot foreclosure deals in a city that is sure to bounce back more strongly over time.

Here is an interesting addition to the statistical evidence that the Las Vegas Strip is staging a comeback. The taxi industry is surging ahead with revenue numbers that are anything but modest. No joke, the cab business in sin city is posting double digit revenue gains while the neighborhood they service 24/7 (Las Vegas Blvd and the airport) is happy for anything in the "plus" category.


Would you believe that June 2011 was the best June in the history of the industry? A huge special event at the Las Vegas Speedway (a great opportunity for large fares) helped to boost the numbers, but even that doesn't account for the totality of the gains. In fact, if you examine the first half of 2011 as a whole, this years revenues have bested previous year numbers every single month. Why would the taxi industry be leading the way with double digit gains even as the city struggles to maintain forward momentum overall?

It makes sense if you think about it. Other than walking (which gets old pretty quick) a cab ride is the best way to get from hotel to hotel at a modest price. Every resort on the Strip has a generous supply of limousines and town cars staging at the main entrance, but for those watching what they spend a taxi ride is a much cheaper alternative. Maybe it's time to introduce a new leading economic indicator to gauge the future prospects of the southern Nevada tourist industry? Let's call it the Vegas Cab Fare Index!



Tag:-market analysis real estate, how to find real estate investors, real estate forecasts, market research real estate, real estate growth, real estate technology, real estate market trends,leading economic indicators