Everyday Economic Indicators
| posted by Heath RowIn 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
mahendrakumardashEconomy 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
mahendrakumardashThe 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
KristiThere 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.