There are certain indicators to watch out for in terms of how the economy is doing. These are barometers to show how well our economy is fairing and what the near future looks like. From unemployment, job growth, consumer spending, debt, and business growth there are a number of things to look out for.
The unemployment rate and job growth may be the most important economic indicator to watch for. This is an indicator that shows how well the workforce is fairing and how much disposable income they have to put back into the economy. Currently, job growth and unemployment rates are holding strong with steady growth.
By analyzing consumer spending as well as the consumer price index, you can get a pretty good idea about the health of the economy. In a healthy economy, spending is steadily increasing but not at alarming rates that would create too much debt. You want to see housing, food, and clothing at good prices.
On the note of consumer spending, consumer debt can all tell a lot. Analysts look at how many loans, credit cards, and mortgages are being given out. A few things to watch out for in our current economy is student loan debt and auto loan debt. These are major sources of debt in the country today. Unpaid debts are also on the rise slightly from credit cards for example.
By tracking how many new partnerships, LLCs, C-Corps, and S-Corps are opening up, this is a good indicator of the direction of the economy. When these businesses close or become dormant, that can be a negative sign for the economy. Small businesses employ a majority of Americans so their health and growth are vital to the economy.
The ballpark indicator is a good one to see the diversity in what is being advertised. When you’re at a ballpark, for example, you want to see a wide variety of industries being advertised. If you see too many ads in one industry, it might be becoming too saturated. You want to see a diverse variety.