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Wednesday, April 8, 2009

Leading Wallstreet Unfolding Economic Indicators

By Doris Vandershield

Well-timed news from the financial market is essential to wise investment decisions. To get this timely information, the Investment Business Daily and The Wall Street Journal are key. You gain an edge when ascertaining reliable metrics along with spot-on insights about market forces and economic trends.

Best economic indicators change before the economy changes. These indicators are gross domestic product (GDP) reports, consumer price index (CPI) reports, the producer price index (PPI), employment indicators, retail sales index, the national association of purchasing management index (NAPM), the consumer confidence index, durable goods order, employment cost index (ECI) and the productivity report which measures how much output is 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.

''Leading Indicators'' is a group of statistics that include consumer confidence numbers. They can show an economic direction well before harder objective data confirms it.

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.

Many believe that solid consumer confidence is crucial to the growth of the economy. This data is revealed at 10:00 a.m. EST on the last Tuesday of any given month. The report analyzes how confident consumers feel about the economy and now willing they are to spend.

The leading indicator of the economy is normally the stock market. Historically, the market is in front of the real economy by about half a year.

This being said, even in a downturn, there can be fake out's or dead cat bounces before a market resumes a downward plunge. Or, in a raising market, there can be sudden plunge that leaves a lot of investors scratching their heads as to why the markets behave that way. Financial and psychological damage will leave opportunities to enter markets for those who study the financial news. Get a Wall Street Journal subscription and read about CPI news as it happens. - 23204

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