Economic Indicator

Definition

Economic indicators are statistics used to measure various aspects of an economy's performance. They provide valuable information about trends, changes, and overall health of the economy.

Analogy

Economic indicators are like a doctor's check-up for the economy. Just as a doctor uses different tests to assess your health, economic indicators provide data points that help economists diagnose the state of an economy.

Related terms

Gross Domestic Product (GDP): The total value of all goods and services produced within a country's borders in a specific time period.

Consumer Price Index (CPI): A measure of average price changes in a basket of goods and services commonly purchased by households, used to track inflation.

Leading Indicators: Economic indicators that tend to change before the overall economy starts to follow a particular pattern or trend.