Consumer Confidence: A Killer Statistic
http://www.investopedia.com/articles/fundamental/103002.asp
Consumer spending is the key to any market economy. On the airwaves, there’s never a shortage of data, analysis and cable commentary regarding consumer behavior.
Depending on the economy’s sheer breadth, consumer spending can range anywhere from 50-75% of gross domestic product (GDP). In the U.S. and most highly industrialized nations, this percentage is about 65% of total spending.
Consumer Sentiment
The two numbers expressing consumers’ feelings about the economy and their subsequent plans to make purchases are the Consumer Confidence Index (CCI), prepared by the Conference Board, and the Consumer Sentiment Index, prepared by the University of Michigan. Both indexes are based on a household survey and are reported on a monthly basis.
Business Spending: A Leading Indicator
Though not as powerful an indicator as consumer spending, business capital spending can be a killer statistic - since things can get ugly in a hurry when overall business investment precipitously cuts back: the impact on the economy can be felt at an even faster pace than if the cut occurred purely along consumer lines.
Other Spending Items
There are other spending indicators, such as purchases of durable goods orders and overall auto sales; however, in terms of aggregating the data, these metrics are narrowly defined extensions of overall individual consumption. Trends across personal consumption will usually be reflected and correlated across these two metrics as well as others.
Economic Indicators: Overview[tutorial-several links]
http://www.investopedia.com/university/releases/default.asp
Economic indicators can have a huge impact on the market; therefore, knowing how to interpret and analyze them is important for all investors. In this tutorial, we’ll cover some of the most important economic indicators. You’ll learn where to find them, how to read them and what they can tell you about he health of the economy - and your investments.