The Importance Of Monitoring The Economy And Economic Indicators
The business world is trying to get a firm grip on the happenings within the economy and the proper and most efficient way to do so is to monitor the economy and economic indicators. It is crucial that the status of a nation’s economy is constantly monitored. Multiple factors come into play when determining the status of a nation’s economy. Some of these key factors include business cycles, unemployment, and inflation. Because the business cycle is an aspect of the economy that is constantly changing and cycling, we must constantly monitor and follow the levels of the economy. Unemployment and inflation are two aspects of the economy that are better when the numbers are low. The points and figures that I have listed within this report list important factors to consider when monitoring the economy to insure the best possible flow.
1.0 Economic Indicators to Watch
Economic indicators are statistics and information supplied by government agencies, non-profit organizations, and …show more content…
This data comes from the U.S. Department of Commerce 's Bureau of Economic Analysis on a quarterly basis. Data is indicated as advance estimates, preliminary estimates, and final numbers and includes clarifications for why the GDP fluctuated from the previous release.
1.2 Money Supply (M2)
This is important to the Federal Reserve because they use this data to gauge current financial and economic conditions using this data to help modify monetary policy and interest rates with the goal of reducing the money supply. This is important to economists because they use this data to foresee cyclical fluctuations and stock price changes. This data comes from Board of Governors of the Federal Reserve System on both a weekly and monthly basis. The data is accumulative dating back January of 1959 for the monthly data, and January 1975 for the weekly data.
1.3 Consumer Price Index