Economic indicators should be paid attention to. They are what we call "FUNDAMENTALS", in other words the structure of our economy. They will show a trend of interest rates going up and down. They will tell you allot about why the consumer is not buying or not spending. Why prices in your local super market are going up or down.
DEFINITION: An economic indicator (or business indicator) is a statistic about the economy. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles.
TYPES: Economic indicators include various indices, earnings reports, and economic summaries. Examples: Unemployment Rate, Non-Farm Payroll, Housing Starts, Construction Permits, New Home Sales, Existing Home Sales, Consumer Price Index (a measure for inflation), Producer Price Index, Industrial Production, ISM (institute for supply management), Gross Domestic Product, Retail Sales, Durable Goods Orders, Beige Book, Johnson's Redbook, to name just a few.
All economic indicators are published without fail every month, month in and month out. Once you follow the economic indicators from one month to the next, (which is very easy to do they are everywhere, Internet, newspaper, radio on a daily basis) you will begin to understand some of the whys of homes sales, interest rates, retail prices, employment, people's attitudes (little humor), etc.
Additionally worldwide events effect the economy and are called TECHNICALS. Technicals have no staying power, they are only TEMPORARY not near the staying power of economic indicators (called FUNDAMENTALS.)
This Week's Economic Calendar:
7:00 am MBA mortgage apps
8:15 am ADP jobs estimate for May (+170K non-farm private jobs)
10:00 am ISM May manufacturing index (57.6 frm 60.4)
Apr construction spending (-0.5%)
3:00 pm May auto and truck sales (N/A)
8:30 am weekly jobless claims (-11K to 413K; con't claims 3.688 mil frm 3.690 mil)
Q1 productivity revision (+1.6% unch frm previous release)
Q1 unit labor costs (+0.9%)
10:00 am Apr factory orders (-1.0%)
8:30 am May employment data (non-farm jobs +185K, non-farm private jobs +220K, unemployment +9.0%)