1. Average workweek of production workers in manufacturing
2. Average initial weekly claims for unemployment
3.New orders for consumer goods and materials, inflation adjusted
4. Vendor Performance
5. New orders, non-defense capital goods
6. New building permits issued
7. Index of stock prices
8. Money supply, adjusted for inflation
9. Interest rate spread: 10 yr Teasury notes and 3 month T bills
10. Index of consumer expectations.
An index comprised of these leading economic indicators is published by a private economics research group called the Conference Board. This data is often used to forecast the unpredictable economy. Sophisticated econometric models also help government officials and investors make monetary policy and fiscal policy decisions.
Though it is easy to dismiss forecasts due to so many unforeseen changes in the economy, it is important to remember that it is the expectation of certain economic events that will affect investment behavior.
Changes in investment behavior will influence the Financial Markets and affect Real Estate decision making.
As degrees of risk change, so should your hurdl rate, the rate of return needed to induce you to invest. With a firm grasp of the underlying principals moving our economy, you will be able to make more informed invesment decisions.
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