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ECONOMY

Economic Indicators

CPI, PPI, retail sales, consumer confidence, PMI, and the data investors watch to read the health of the economy.

Economic indicators are the data releases investors and policymakers use to gauge the direction of the economy, generally grouped into leading indicators (which tend to change before the economy does, like building permits or consumer confidence), lagging indicators (which confirm a trend already underway, like the unemployment rate), and coincident indicators (which move alongside the economy in real time, like industrial production). CPI and PPI measure price changes at the consumer and producer level respectively; PMI surveys gauge whether manufacturing and services activity is expanding or contracting. No single indicator tells the whole story, which is why economists and markets typically weigh several together rather than reacting to any one release in isolation.