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Wednesday, April 8, 2009

Top Wall Street Economic Indicators

By Robert Blackfelt

Well-timed news from the financial market is key to producing wise investment decisions. The Investment Business Daily and The Wall Street Journal are the some of the news sources to go to for this timely information. When you track their reliable metrics and heed the targeted insights about economic trends and market forces, you gain an advantage.

Dominant indicators of the economy will change prior to when the economy actually changes. The consumer price index reports, the retail sales index, the consumer confidence index, the employment cost index, the gross domestic product reports, the national association of purchasing management index, the producer price index, the productivity report, durable goods order and employment indicators are these indicators which show the output created by a unit of labor.

If there aren't any signs of the economy turning around, one of the first telltale signs is the Consumer Confidence Indicator. It is published in the Wall Street Journal and other leading financial papers.

Consumer confidence numbers are part of a particular set of statistics that are known as ''leading indicators''. They can reveal economic trends several weeks before harder objective data makes it apparent.

Consumer confidence numbers are arrived at through interviews with a random sample of consumers. These random selections are geared as a relative representative of attitudes and population structure of the country as a whole. Data point answers are weighted according to different income groups, occupations, and regions.

The prevailing theory is that high consumer confidence is key to economic growth. This data is released on the final Tuesday of any given month at 10:00 a.m. EST. The report reveals how confident consumers are about the economic state and how willing they are to spend money.

Although a bit more futuristic, the stock market is normally a leading indicator of market direction. Historically, it has always led the real economy by about six months.

Thus, even in a tough economy, there can be what is called ''fake out's'' or ''dead cat bounces'' prior to a downward plunge in the market. On the other hand, in an improving market, there can be a sudden dive that leaves a lot of investors puzzled. Other people who invested and were defeated will leave a down market that will be opportunistic for others who can step in and take advantage of the situation. Get a Wall Street Journal subscription and read about Consumer Price Index national and international breakouts. - 23159

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