There are a number of economic indicators that come out on a monthly or quarterly basis, these often have quite a dramatic effect on the markets. Recently I have found a number of these indicators in chart form, which makes them far more interesting and potentially more predictive. Hopefully some of you may find them as interesting as I have.
Consumer Sentiment
Consumer sentiment is a statistical measurement and economic indicator of the overall health of the economy as determined by consumer opinion. Consumer sentiment takes into account an individual’s feelings toward his or her current financial health, the health of the economy in the short term and the prospects for longer-term economic growth.
In the U.S., consumer spending makes up a majority of economic output as measured by Gross Domestic Product (GDP). As much as 75% of GDP is driven by a consumer spending component. Naturally, the sentiment or attitude of consumers goes a long way in gauging the health of the economy.
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