Leading Economic Indicators

Leading Economic Indicators - financial system increased,...

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Leading Economic Indicators Average workweek- Hours worked per week typically increase when greater output and sales are expected. Unemployment claims- Initial claims for unemployment benefits reflect changes in industry layoffs. Stock Prices-Higher stock prices reflect expectations of greater sales and profits. Building permits- A permit represents the first step in housing construction Consumer confidence-Optimism spurs more consumers spending A gauge of future economic activity grew in October after a summer lull, suggesting the U.S. economy will slowly start strengthening early next year. But unemployment is likely to remain high in 2011, economists say (associated press, 2010).The index had risen steeply since April 2009 on the strength of the stock market, record-low interest rates and a rebound in manufacturing (associated press, 2010).Six of the 10 indicators Conference Board tracks improved in October, led by financial conditions: stock prices rose, the amount of money in the
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Unformatted text preview: financial system increased, and the difference between 10-year interest rates and the overnight interest rate that the Federal Reserve has kept at a record low near zero. A wide gap between the two rates has historically suggested that investors expect economic activity to pick up (associated press, 2010). Applications for unemployment insurance payments rose by 2,000 to 439,000 in the week ended Nov. 13, Labor Department figures showed. The four-week moving average, a less volatile measure than the weekly figures, dropped to 443,000, the lowest level since September 2008 (Bloomberg, 2010).The index of lagging indicators increased 0.1 percent last month. The index measures business lending, length of unemployment, service prices and ratios of labor costs, inventories and consumer credit (Bloomberg, 2010). http://www.npr.org/templates/story/story.php?storyId=131412655 http://www.bloomberg.com/news/...
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This note was uploaded on 11/02/2011 for the course ECONOMY G123/EC100 taught by Professor Melissa during the Spring '10 term at Rasmussen College.

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