Main U.S Economic Indicators

Economic indicators also called business indicators is a statistic guide about the U.S economy. These indicators allow economic experts to study the U.S economic performance and predict of future performance. The economic indicators are mixture of indices, earnings reports, and economic summaries used mainly by the governments, investors in Wall Street, and Forex Market to determine the future of country’s economic performance .We will go through some of the main indicators to learn how its effect the U.S economic. Federal Interest Rate It is the price that been paid by borrowers for the use of U.S Dollars. This interest rate affects the exchange rate of U.S currency also its affect whole variety of interest rates set by building societies, commercial banks, and other. The interest rate announces by Reserve. If the interest rate is increasing that is positive for the economic. Unemployment Rate It is the number of unemployed workers divided by the total civilian labor force. It shows the number of people without jobs. The Unemployment Rate released by the Bureau of Labor Statistics of the US Department of Labor. Therefore, a decrease of the number is seen as positive for the economic and an increase is seen as negative for the economic. Trade Balance It is a balance between exports and imports of total goods and services in the country. It has two values surplus which is the positive number it means higher demand on U.S exports than imports. The second is trade deficit which is the negative numbers of trade balance and that mean more imports than exports in United States. The Trade Balance released by the Bureau of Economic Analysis and the U.S. Census Bureau. Consumer Price Index The consumer price index (CPI) is the measure of change in retail price of consumer goods and services which contain over 200 different categories. These data are taken from all goods and services people use on a daily basis and released by the US Department of Labor. A high reading for CPI is positive for the economic, while low readings effect negatively on the economic. Gross Domestic Product Gross Domestic Product (GDP) is the total value of final goods and services produced within a country's borders in a year. It is one of the strongest measures of economic performance and standard of living in the country. The GDP are released by the US Bureau of Economic Analysis. A positive GDP figure means the economic in a good shape and the negative GDP figure means bad economic performance. New Home Sales and Existing Home Sales The New Home Sales report shows the number of newly constructed homes during the month and it released by the US Census Bureau. The Existing Home Sales is a measure of the selling rate of pre-owned single family homes, collected by the National Association of Realtors from 650 realtor associations. Both home sales reports consider a sensitive factor for the U.S economy. The high home sales numbers reflect good economic performance and low home sales reflects bad economic performance. Conclusion There are many economic indicators that can be used to evaluate the U.S Economy. It is very important to understand what these numbers means and how they affect our economy because the bad performance of the economy will affect the living standard for individuals in this country. Therefore we need to spend more time looking at these reports and understanding the concepts behind it also participating in the changes that will help this country to succeed.  

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