This website uses cookies to ensure you have the best experience. Learn more

Economic Indicators Essay

2026 words - 8 pages

The automotive industry was never considered to be an indicator of the economic status until recently. The American car companies have been put through the toughest conditions in history with one filing for bankruptcy while undergoing government restructuring and another being taken over by a competitor. Even though the economy has shed light on both strong and weak organizations, the automotive industry has experienced mostly negative attention from most of the indicators to be discussed.Real GDPGross Domestic Product also known as GDP is used to identify economic health of a country. GDP is the sum from output of goods and services produced or provided within the United States borders. However, transactions that are considered underground transactions, for whatever reason are not reported to the government and are not a part of the numbers used to calculate real GDP. The total sum includes all that is produced and sold and is used not only by government, but investment brokers, and bankers in determining tax, interest rates, and investment opportunities. The measure of GDP is important as the measures are used to help better understand not only inflation but also employment.According to U.S. Department of Commerce, Bureau of Economic Analysis, "The total output of goods and services produced by labor and property in the United States decreased at an annual rate of 5.7 percent in the first quarter of 2009” (para. 1). In the fourth quarter, real GDP decreased 6.3 percent. Motor vehicle output subtracted 1.36 percentage points from the first-quarter change in real GDP after subtracting 2.01 percentage points from the fourth-quarter change.UnemploymentThe current rate of total unemployment in the United States has risen to 9.4% in May of 2009, (BLS, 2009). This is an increase of 0.5% from the rate of 8.9% in April of 2009. In the state of California, the unemployment rate is at 11.5%, the highest rate since before World War II (Abate, 2009). The amount of people on unemployment in the automotive industry has seen a steady increase since December of 2007, when the economy first started to decline. Since 2007, the unemployment rate has increased from 4.6% in the United States (Bureau of Labor Statistics, 2009).Over the past 10 years, the overall unemployment rate has been fluctuating. Starting in 1999, the unemployment rate for the nation was only 4.2% compared to the rate of 2.9% for the automotive industry in 2008, (Bureau of Labor Statistics, 2009). With the American car companies having financial trouble, thousands of people have lost jobs due to lack of sales causing a lesser need for manufacturing as many cars. Many people are now unemployed after working at the automotive plants in Michigan, partially attributing to the 14.1% unemployment rate that is seen there.Inflation Rate as measured by the Consumer Price IndexAccording to Colander (2008), “CPI measures the prices of a fixed basket of consumer goods, weighted according to each...

Find Another Essay On Economic Indicators

Economic Indicators Essay

2855 words - 11 pages with the aim of studying the effect of government policy on these factors.Economic indicatorIt indicates the statistical data that shows general trends in the economy. Those with predictive value are leading indicators; those occurring at the same time as the related economic activity are coincident indicators; and those that only become apparent after the activity are lagging indicators.Examples are unemployment, housing starts, Consumer Price

Economic Indicators in Australia Essay

945 words - 4 pages Recent evidence has shown that Australia will enter into technical recession in the near future, due to the myriad of global economies also experiencing negative growth. The effect of Australia’s strong economic ties to such countries was noted by Prime Minister Kevin Rudd, who conceded on April 20, 2009, that “it is inevitable that Australia will be dragged into recession.” Providing credence to such predictions are indicators in

Economic Indicators Forecast

1654 words - 7 pages predict the state of the economy. Understanding all the tools available is certainly important for economist; however, it's equally critical for economist to know when and where to use them. This is what separates the great economists from good ones!Economic Indicator ForecastEconomic indicators are used by economists to understand the status of a given country's economy. These indicators provide historical review of where an economy has been as well

ECO 360/ Economic Indicators

1962 words - 8 pages visit the Bureau at http://www.bls.gov I recommend you visit the site and click on the link for "Economy At A Glance." This page shows many of the leading economic indicators thegovernment tracks. These economic indicators are: Civilian Labor Force, Unemployment, Unemployment Rate, Employees on Non farm Payrolls, Average Weekly Hours, Average Hourly Earnings, Employment Cost Index, Productivity, Consumer Price Index (measures inflation), Producer

Economic Indicators - Transportation Industry

1920 words - 8 pages IndexTransportation services index (TSI) is the main seasonally adjusted economic measure of transportation measured on a monthly basis. Some indicators used to determine the TSI are employment, sales, business inventories, consumer confidence, among other things. The TSI is short is a month-to-month indicator of changes in the output services provided by the transportation industry (Transportation Services Index, n.d.). The TSI from 1990 to 2000 has

Economic Growth and Economic Indicators

852 words - 4 pages 2013 is 2.4 percent change in GDP. GDP increased in quarters 1-3 of 2013 but decreased in the fourth quarter. The decrease in the fourth quarter may be problematic for continued economic growth but the general trend of increasing GDP offsets this worry. (see Index 1) Consumer activity Recent changes in economic indicators that monitor consumer activity suggest; that economic growth is occurring ,as evident by an increase in personal disposable

Implications of Economic Indicators Forecasts

3052 words - 12 pages Implications of Economic Indicators ForecastsOverviewThe Hershey Company is a principal snack food company and the leading North American manufacturer of quality chocolate and non-chocolate candy products. Hershey earns revenues of more than $4 billion employing more than 13,000 people worldwide. The company sells the well-known brands, Hershey's, Reeses, Hershey's Kisses, Kit Kat, Almond Joy, Mounds, York Peppermint Patty, Jolly Rancher

Economic Indicators Paper - BUS ECON I

1162 words - 5 pages be compared and contrasted for the prominent economic indicators. This paper will compare two different 18-month forecasts for six economic indicators, a reconciliation of the differences between forecasts, and a rationalization for which forecasts our team believes to be the most accurate within the home building industry.Compare & Contrast Six Economic Indicators:Interest Rate: Interest rates on residential mortgages are influenced by

The Airlines Industry and Economic Indicators Forecast

1428 words - 6 pages a few economic indicators and their forecast of future trends.Managers, investors, stockholder and stakeholders usually review the forecast of economic indicator before making a business decision. The unemployment rate is a prime indicator of that effects many businesses today. In the airline industry when unemployment is at an all time high it forces airlines to reduce ticket prices to affordable rates to attract people to take more vacations

Economic Indicators

817 words - 3 pages Economic IndicatorsStock Prices: Stock prices are very important to a company in that it shows how valuable the company is in the public eye. In essence, possessing stock is the same as owning part of a company. The rules of supply and demand apply in the stock market. When the stock price of a company goes up, it means that people are paying more to buy it because the demand is higher. When it goes down, it means that people are selling it for

Economic Indicators

1324 words - 5 pages Macro-Economic indicators1. Gross Domestic Product (GDP)2. Inflation3. Interest rates4. Consumer Price Index (CPI)5. Unemployment rate6. National Income7. National Budget8. Producer Price Index9. Labor force10. International TradeGross domestic product (GDP) is the value of all goods and services produced in a country during a given period. One way to determine the GDP is to add up the sum of spending on four kinds of goods and services in any

Similar Essays

Economic Indicators Essay

534 words - 2 pages Economic Indicators      For the individual who watches CNN a great deal, the term Economic Indicators well recognized. However, for the individual who chooses not to make CNN a primary station, the term Economic Indicators can be extremely confusing. Economist often use very unlike terms when referring to the fluctuating economy. Economic Indicators happens to be one of the many terms that they use. So, what exactly

Economic Indicators Essay 2670 Words

2670 words - 11 pages organizations to a certain expected direction.. The effect of economic indicators, influence everyone and every organization, governmental or private. The indicators are the housing industry, Federal Reserve actions, interest rates, the employee situation report, and gross domestic product.Government can make use of these indicators to set the tone of economic trends. Government makes predictions based on these indicators to establish what the future

Economic Indicators Essay 1775 Words

1775 words - 7 pages Economic Indicators Economic indicators are various layers of statistics that provide insight and information into how an economy is functioning. An economist might use economic indicators to paint a picture of current economic performance, or make future economic predictions. As a team, we will profile six economic indicators: Consumer Price Index, Capacity Utilization, Unemployment Rate, Producer Price Index, Interest Rate, and

Economic Indicators Essay 2012 Words

2012 words - 8 pages In this paper, the members of team B have chosen 10 different economic indicators that can be used by Starbucks as an aid to forecasting future events. The 10 chosen events have a direct correlation to the company. In the paper, team members will explain why each chosen indicator is important to Starbucks while also explaining how the company will use the information provided.PricesPrices affect Starbucks in a multitude of ways. The coffee bean