Archive for ‘Indian Economy’

September 23, 2011

Economic Indicators: Leading, Lagging and Coincident

Investment is related to economy and economic conditions. The economic conditions prevailing in the economy have huge impact on the value of the investment as well as availability and opportunities for investment. So for you as investors it is important to understand the economic conditions. To this purpose, economic indicators serve well.

An indicator is usually an index or group of index that helps to predict future financial or economic trends. For example, the social and economic statistics relating economic activities, such as output, demand and supply figures of any product or service or inflation or index for industrial production (IIP) published by various departments of Indian government are such indicators that helps to understand the trend in the economy and future course for investments. Some of the popular indicators include unemployment rates, GDP, IIP, inflationary indexes and consumer confidence. Official indicators must meet certain set criteria.

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