Are sporting events like the Superbowl and World Series economic indicators? They are not traditional measures of the economy, like GDP or inflation, but they are indirect measures of economic activity.
In this post, we have some other interesting non-direct economic indicators. Some of these might appear in the Fed’s Beige Book, where they interview people locally in their districts to gauge what is happening at a hyper local level.
Here are some examples of non-direct economic indicators:
1. Consumer sentiment. Surveys that measure consumer sentiment can provide insight into consumer spending patterns and the overall health of the economy. Positive sentiment often translates to higher levels of consumer spending.
2. Housing starts. The number of new housing starts can provide insight into the strength of the housing market and overall consumer confidence. High levels of housing starts can be a positive sign for the economy.
3. Purchasing Managers’ Index (PMI): The PMI measures business activity across different sectors, providing an indication of overall economic health. High PMI readings can suggest economic growth and expansion, while low readings may indicate a slowdown.
4. Industrial production: Industrial production measures the output of the manufacturing, mining, and utility sectors. High levels of industrial production can indicate a strong economy with high levels of employment and consumer spending.
5. Social media sentiment. Analysis of social media posts and sentiment can provide insight into consumer confidence, spending habits, and even stock market trends.
6. Traffic congestion. The level of traffic congestion on highways and in urban areas can provide insight into economic activity and consumer spending patterns.
7. Electricity usage. Changes in electricity usage patterns can provide an indication of changes in economic activity, such as shifts in manufacturing output.
8. Shipping and freight volumes. The volume of goods being shipped and transported can provide insight into the level of economic activity, particularly in the manufacturing and retail sectors.
7. Restaurant reservations. The number of restaurant reservations and dining trends can provide insight into consumer spending patterns and overall economic activity.
8. Job postings. The number and types of job postings can provide insight into industry trends and labor market activity.
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