Principle Economic Indicators
The million (or should we say 'billion' now) dollar question is whether or not the United States' economy will stay in it's record 107 month expansion (according to the index of leading indicators) or come out of the boom and take a downturn into a recession. Nobody, including the Chairman of the Federal Reserve, Alan Greenspan has a crystal ball to provide insight as to what will happen if interest rates are raised, lowered, or left alone. However, Economists have developed a set of indicators to aid in predicting when a recession is about to occur and when the economy is in one. Indicators should not be mistaken for predictors. They are simply forecasting tools, and like any forecast can be misleading. The index of leading indicators that is reported in the popular press shows our economy is still in an expansion. For the purposes of our evaluation of the economy, we chose the Principle Economic Indicators tracked by the Bureau of Economic Analysis and the U.S. Census Bureau under the Economics and Statistics Administration at the U.S. Department of Commerce. There are thirteen Principle Economic Indicators, and they fall into five major categories: National Output and Income; Orders, S
These items don't break down as easily and are not consumed at the time of purchase, so it is unlikely that a consumer of durable goods will buy that same item again within three or more years. has been an economic juggernaut in the trade deficit area. Whether a country runs a trade deficit or a surplus is dependent on the supply and demand of its goods and services. The greater the profits, the more potential for growth. The annual rate deficit totaled $336 billion in January, up from $268 billion this time last year. The February decrease was a reflection of large declines in orders for transportation equipment, mainly civilian aircraft, and industrial machinery. These are considered good leading indicators of home sales and spending in general. The American population having increased incomes fosters increased spending, domestic and abroad. Consumer SpendingTwo of the thirteen principle economic indicators tracked by the Bureau of Economic analysis fall under the category of Consumer Spending. The Manufacturing and Trade Inventories report indicates the level of business stocks at the retail, wholesale, and manufacturing levels in book value terms. This is a normal cyclical trend, and building and sales should pick back up in the spring despite increases in mortgage rates. The homebuilders' index of prospective buyer's traffic has been on a downslide since last spring, and sales of new and existing homes have declined since the summer.
Common topics in this essay:
Census Bureau,
Account Balance,
Consumption Expenditures,
Trade Inventories,
Corporate Profits,
Shipments Inventories,
Inventories Durable,
Personal Income,
Retail Sales,
January February,
retail sales,
consumption expenditures,
trade deficit,
building permits,
personal consumption expenditures,
personal consumption,
housing starts,
consumer spending,
annual rate,
national output income,
personal income,
foreign trade,
principle economic indicators,
bureau economic analysis,
construction spending data,
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Acceptance Essays
