Economic Indicators
Overview
The resource is developed to create awareness about the various economic indicators how these indicators are impacting stock prices.
Economic Indicators for analysing an Economy
Economic activity has a major impact on stock market investment. As an investor we have to assess how the economy is performing and to find out how our investment will perform in the future. To craft investment strategy financial adviser/investor require to analyse the various economic indicators. There are varied economic indicators depend on the type of economy. As an investor we have to identify the trends in the various economic indicators, which helps the investor to take an investment decision. This particular activity will explore the various alternatives where investor can visualise, analyze and interpret the trends to take investment decisions.
Instructions to Learners:
1. Learners are required to go through the economic indicators.
2. Understand the importance of each economic indicator and its impact on various other indicators.
3. Select all the major indicators and select any two sub indicators.
4. Gather the previous five years of data and input in the form of table which is shown below.
5. Try to plot a chart, line trend or bar graph using excel sheet.
6. Interpret the chart from the perspective of an investor.
Sample table format for collecting the data and converting data into chart:
| Major Economic Indicator | Sub indicator | Current Year | Previous Year 4 | Previous Year 03 | Previous Year 02 | Previous Year 01 | |
| Sub indicator | |||||||
| Sub indicator |
For reference download the attached resource of economic indicators