Economic Indicators Economic Indicators The economic indicators allow for analysis of economic performance as well as predictions of future performance. The economic indicators includes indices like unemployment rate, gross domestic product, consumer price index, prices in the stock market and changes in the money supply (Moreland, 2013)…
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The time period taken under consideration is 2002 to 2012. Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2002 5.7 5.7 5.7 5.9 5.8 5.8 5.8 5.7 5.7 5.7 5.9 6.0 2003 5.8 5.9 5.9 6.0 6.1 6.3 6.2 6.1 6.1 6.0 5.8 5.7 2004 5.7 5.6 5.8 5.6 5.6 5.6 5.5 5.4 5.4 5.5 5.4 5.4 2005 5.3 5.4 5.2 5.2 5.1 5.0 5.0 4.9 5.0 5.0 5.0 4.9 2006 4.7 4.8 4.7 4.7 4.6 4.6 4.7 4.7 4.5 4.4 4.5 4.4 2007 4.6 4.5 4.4 4.5 4.4 4.6 4.7 4.6 4.7 4.7 4.7 5.0 2008 5.0 4.9 5.1 5.0 5.4 5.6 5.8 6.1 6.1 6.5 6.8 7.3 2009 7.8 8.3 8.7 9.0 9.4 9.5 9.5 9.6 9.8 10.0 9.9 9.9 2010 9.8 9.8 9.9 9.9 9.6 9.4 9.5 9.5 9.5 9.5 9.8 9.3 2011 9.1 9.0 8.9 9.0 9.0 9.1 9.0 9.0 9.0 8.9 8.6 8.5 2012 8.3 8.3 8.2 8.1 8.2 8.2 8.2 8.1 7.8 7.9 7.8 7.8 Diagrammatically it can be represented as follows: (Bureau of labor Statistics, 2013). Consumer price index: The following provides the data on consumer price index for the same time period as above. ...
221.0 222.0 223.2 224.0 224.6 224.8 225.5 226.3 226.9 226.8 227.0 227.0 2012 227.5 228.4 229.1 229.2 228.5 228.6 228.7 230.1 231.4 231.8 231.0 231.0 Diagrammatically it can be represented as follows: (Bureau of labor Statistics, 2013). Trade deficit: By the year 2005 the net trade of US had been in deficit for more than 25 years. The trajectory revealed a deficit more than 700 billion dollars for 2005. The reason for long and persisting deficit in trade for the country is stringent trade barriers and declining competitiveness of the goods in international market. The long term performance requires continuous deterioration of the dollar or slow growth of the country as compared with other trading partners. Although there have been a slight surge in the trade deficit in the last few years mainly due to the fact of appreciation of the dollar and slow growth of trading partners. The situation caught up under the influence of macroeconomic and financial policies of the government as well as by the policy responses after the financial crisis (U.S. Dept of Commerce, 2013). The period of 1990s proved trade deficit is not twin of the budget deficit. The argument which derives trade deficit to be the result of low savings rate and the saving-investment gap is not correct. Trend for these economic indicators The chart shows unemployment rate to follow a cyclical path while consumer price index has taken the rising path from 2002. The rate of unemployment was highest unemployment in 2010 while consumer price index was highest in 2008. Impact on business Rise in unemployment implies contraction of job opportunities and businesses can avail more skilled labor at minimal cost and therefore profitability rises. Trade deficit has negative impact on the business opportunities.
They are structural unemployment, frictional unemployment and cyclical or seasonal unemployment. Structural unemployment arises out of the change in demand of technology and taste in the industry. For instance, the typewriter industry has no demand now because of the emergence of computers.
Intermediate goods do not have their utility and demand for their own sake rather they are demanded for the production of final goods. For instance if raw cotton is used for producing yarn, raw cotton is the intermediate good then, but if yarn is used for producing cloth, then yarn becomes the intermediate good.
Personal income does not usually rise fast enough to absorb increases in interest rates. This is more likely to be an issue for people whose budgets are already stretched, since people with lower credit scores or worse ratios of income to expense are more likely to have to resort to variable rate loans in order to qualify for the credit they want, and these are the very loan payments which will rise with interest rates, forcing these consumers to make compensatory budget adjustments.
The authors Thorbecke (Resident Scholar at The Jerome Levy Economics Institute of Bard College in 1995) and Coppock (Professor, Department of Economics, Hillsdale College in 1995) conducted the study with the aim to verifying what percentage of the stock market variation can be explained by macroeconomic factors and monetary policy.
As the paper outlines Victoria's Secret generates 84% total sales which are in total $6.32 billion net sales within the fiscal year of 2009. The store sales are in total $2.5 billion, while its sales in the direct-to-customer channel nearly reached $1.03 billion which made a total sale of the Victoria's Secret brand of $3.9 billion in 2009.
The petroleum and energy is the target studied in his report, thus it is imperative to select economic indicators that can help an investor evaluate how business related to this industry would perform in a particular marketplace. In order to better understand the
Business cycle fluctuations are often explained against the model of Keynesian economy where the economy or an industry reaches short term equilibrium in a state of less than or above full employment status. (Sullivan and Sheffrin, 2003) When an economy or a industry
The author states that the economic Indicators have different relations with the Economic Business Cycle. They are either Pro cyclic, Counter cyclic or Acyclic in nature. A pro cyclic economic indicator shifts in the same direction as the current market situation. Hence, if the financial system is functioning well, this number is increasing.
The graphical indicators of the trend have been presented below: Figure 1: Apparent Consumption of Pure Alcohol (Australian Bureau of Statistics, 2012) The trend depicted above states that the portion of pure alcohol available for the consumption in the form of beer has decreased almost by 50%, i.e.
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