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3:20 pm | 0 recommendations | 3 comments

Everyday Economic Indicators

| posted by Heath Row

In today's New York Times, accompanying an article on economic forecasts, there's a wonderful graphic offering up a handful of interesting and insightful workaday economic indicators -- anecdotal ways to gauge the state of the economy. Among them:

  • Wide price differences for gas indicate that price sensitivity is less important than convenience
  • Thickness of the local paper on Thanksgiving -- does the number of separate ad inserts help predict a good year for retailers?
  • "No Vacancy" signs mean that prices are rising and that business-to-business transactions are trumping business-to-consumer ransactions
  • Restaurant service: If it's good, the unemployment rate is high. If it's bad, high-quality help is harder to come by
  • Pawn shop wrenches: In rust-belt locations, check pawn shop windows for tools -- if there are a lot of them, it means that tradesmen are having a rough time
  • Cost of a snow-free driveway: If the service provider uses a snowblower, it means gas prices are high. What does it mean if they use a shovel?
  • "For Sale" signs can indicate how strong the real estate market is -- particularly if prices are being lowered or properties remain on the market for a long time
  • Heavy traffic is worse during rush hour when the economy is good
  • Rising gas prices can obviously impact the travel and tourism segments of the economy

What back-of-envelope economic indicators do you use?

Comment

Recent Comments | 3 Total

December 6, 2005 at 11:54am

mahendrakumardash

Economy is changing fast and so the indicator.Usually forecasts are made basing on few factors.But amazingly,the factors undergo change and so the indicators.Forecast will be proper if there is a systematic and proper trend
analysis.

December 6, 2005 at 11:59am

mahendrakumardash

The market trend,production level,postion of tertiary sector all together with a certain percentage of + and - determine the indicator.
With fast changing economic scenario,indicators
too undergo change.

December 7, 2005 at 11:48am

Kristi

There are more large trucks on the highway when the economy is good.

There are more help-wanted ads in the paper when the unemployment rate is low.

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