Macro-Economics Indicators Essay Sample

Macroeconomic index is a statistics about the economic system. Economic indexs allow analysis of economic public presentation and anticipations of future public presentation. One application of economic indexs is the survey of concern rhythms. Economic indexs include assorted indices. net incomes studies. and economic sum-ups. Examples: unemployment rate. quits rate. lodging starts. Consumer Price Index ( a step for rising prices ) . Consumer Leverage Ratio. industrial production. bankruptcies. Gross Domestic Product. broadband cyberspace incursion. retail gross revenues. stock market monetary values. money supply alterations. United States Census Bureau and United States Bureau of Economic Analysis are manufacturers of economic indexs. Categorization of macroeconomic indexs n the footing of clip: – On the footing of clip economic indexs can be classified into three groups harmonizing to their usual timing in relation to the concern rhythm. those are as follows. ( 1 ) taking indexs.

( 2 ) dawdling indexs.
( 3 ) and coinciding indexs.
( 1 ) Leading indexs: -A short term forecaster of economic system.
Leading indexs are those indexs that normally changes before the economic system as a whole alteration. They are hence utile as short-run forecasters of the economic system. Examples of taking indexs: –

( a ) Stock market returns.
( B ) the index of consumer outlooks.
( degree Celsius ) edifice licenses.
( vitamin D ) and the money supply.
The 10 Components of Leading Indexs: –
1. Average hebdomadal hours ( fabricating ) — Adjustments to the on the job hours of bing employees are normally made in progress of new hires or layoffs. which is why the step of mean hebdomadal hours is a prima index for alterations in unemployment. 2. Average hebdomadal jobless claims for unemployment insurance — The CB reverses the value of this constituent from positive to negative because a positive reading indicates a loss in occupations. The initial jobless-claims informations is more sensitive to concern conditions than other steps of unemployment. 3. Manufacturers’ new orders for consumer goods/materials — this constituent is considered a prima index because additions in new orders for consumer goods and stuffs normally mean positive alterations in existent production. The new orders decrease stock list and contribute to unfilled orders. a precursor to future gross.

4. Seller public presentation ( slower bringings diffusion index ) — This constituent measures the clip it takes to present orders to industrial companies. Vendor public presentation leads the concern rhythm because an addition in bringing clip can bespeak lifting demand for fabricating supplies. Vendor public presentation is measured by a monthly study from the National Association of Buying Managers ( NAPM ) . This diffusion index measures one-half of the respondents describing no alteration and all respondents describing slower bringings. 5. Manufacturers’ new orders for non-defence capital goods — As stated above. new orders lead the concern rhythm because additions in orders normally mean positive alterations in existent production and possibly lifting demand. This step is the producer’s opposite number of new orders for consumer goods/materials constituent. 6. Building licenses for new private lodging units.

7. The Standard & A ; Poor’s 500 stock index — The S & A ; P 500 is considered a prima index because alterations in stock monetary values reflect investor’s outlooks for the hereafter of the economic system and involvement rates. 8. Money Supply ( M2 ) — The money supply steps demand sedimentations. traveller’s cheques. nest eggs sedimentations. currency. money market histories. and small-denomination clip sedimentations. Here. M2 is adjusted for rising prices by agencies of the deflator published by the federal authorities in the GDP study. Bank loaning. a factor lending to account sedimentations. normally declines when rising prices increases faster than the money supply. which can do economic enlargement more hard.

Therefore. an addition in demand sedimentations will bespeak outlooks that rising prices will lift. ensuing in a lessening in bank loaning and an addition in nest eggs. 9. Interest rate spread ( 10-year Treasury vs. Federal Funds mark ) — The involvement rate spread is frequently referred to as the output curve and implies the expected way of short- . medium- and long-run involvement rates. Changes in the output curve have been the most accurate forecasters of downswings in the economic rhythm. This is peculiarly true when the curve becomes inverted. that is. when the longer-term returns are expected to be less than the short rates. 10. Index of consumer outlooks — This is the lone constituent of the taking indexs that is based entirely on outlooks. This constituent leads the concern rhythm because consumer outlooks can bespeak future consumer disbursement or tightening. The information for this constituent comes from the University of Michigan’s Survey Research Centre. and is released one time a month.

( 2 ) Laging indexs: –
Laging indexs are indexs that normally change after the economic system as a whole does.
Typically the slowdown is a few quarters of a twelvemonth. Examples of dawdling indexs: –
( a ) Unemployment rate.
( B ) Bollinger bands.
The constituents are: –
* The mean continuance of unemployment ( inverted )
* The value of outstanding commercial and industrial loans
* The alteration in the Consumer Price Index for services
* The alteration in labor cost per unit of end product
* The ratio of fabrication and trade stock lists to gross revenues
* The ratio of consumer recognition outstanding to personal income
* The mean premier rate charged by Bankss.

( 3 ) Coincident indexs: -provides current information of economic system. Coincident indexs change at about the same clip as the whole economic system. thereby supplying information about the current province of the economic system. Examples of coinciding indexs: –

( a ) Gross Domestic Product.
( B ) industrial production.
( degree Celsius ) personal income
( vitamin D ) and retail gross revenues.

Categorization of macroeconomic indexs n the footing of way: -There are besides three footings that describe an economic indicator’s way relation to the way of the general economic system: ( 1 ) Procyclic: -It moves in the same way as the general economic system: they increase when the economic system is making good. lessening when it is making bad. Example: Gross domestic merchandise ( GDP ) is a procyclic index. ( 2 ) Countercyclic: -It moves in the opposite way to the general economic system. Example: The unemployment rate is countercyclic. ( 3 ) Acyclic: – indexs are those with small or no correlativity to the concern rhythm: they may lift or fall when the general economic system is making good. and may lift or fall when it is non making good. Example: Business rhythm.

INDIA AT A GLANCE: –
Economic Profile: –
Gross Domestic Product during 2010-11: US $ 1518. 2 billion ( Rs 73. 1 trillion )
Per capita income during 2010-11: US $ 1146. 8 ( Rs 54. 835 )
Forex Reserves ( as on January 20. 2012 ) : US $ 293. 25 billion
Exports ( November 2011 ) : US $ 22. 3 billion
Exports ( April-November 2011-12 ) : US $ 192. 7 billion
Imports ( November 2011 ) : US $ 35. 9 billion
Imports ( April-November 2011-12 ) : US $ 309. 5 billion
Sum of FDI influxs ( for November 2011 ) : US $ 2. 54 billion Amount of FDI influxs ( from April 2011 to November 2011 ) : US $ 22. 83 billion Accumulative sum of FDI equity influxs ( from April 2000 to November 2011 ) : US $ 152. 55 billion Sectors pulling highest FDI influxs: Servicess Sector ( 21 per cent ) . Telecommunications ( 8 per cent ) . Computer Software & A ; Hardware ( 7 per cent ) . Housing & A ; Real Estate ( 7 per cent ) . Construction Activities ( Including Roads & A ; Highways ) ( 7 per cent ) . Power ( 5 per cent ) . Car Industry ( 4 per cent ) . Metallurgical Industries ( 4 per cent ) . Drugs & A ; Pharmaceuticals ( 3 per cent ) . Petroleum & A ; Natural Gas ( 2 per cent ) . Top Investing States: Mauritius ( 41 per cent ) . Singapore ( 10 per cent ) . U. S. A ( 7 per cent ) . U. K ( 6 per cent ) . Japan ( 5 per cent ) . Netherlands ( 4 per cent ) . Cyprus ( 4 per cent ) . Germany ( 3 per cent ) . France ( 2 per cent ) . U. A. E ( 1 per cent ) .

General Profile: –

Area: 3. 3 Million sq. km
Location: The Indian peninsula is separated from mainland Asia by the Himalayas. The Country is surrounded by the Bay of Bengal in the E. the Arabian Sea in the West. and the Indian Ocean to the South. India occupies a major part of the south Asiatic subcontinent. Geographic Coordinates: Liing wholly in the Northern Hemisphere. the Country extends between 8° 4? and 37° 6? latitudes north of the Equator. and 68°7? and 97°25? longitudes east of it. Indian Standard Time: GMT + 05:30

Telephone Country Code: +91
Capital: New Delhi
Boundary line States: Afghanistan and Pakistan to the north-west ; China. Bhutan and Nepal to the North ; Myanmar to the E ; and Bangladesh to the E of West Bengal. Sri Lanka is separated from India by a narrow channel of sea. formed by Palk Strait and the Gulf of Mannar. Coastline: 7517 kilometer embracing the mainland. Lakshadweep Islands. and the Andaman & A ; Nicobar Islands. Climate: The clime of India can loosely be classified as a tropical monsoon one. But. in malice of much of the northern portion of India lying beyond the tropical zone. the full state has a tropical clime marked by comparatively high temperatures and dry winters. There are four seasons – winter ( December-February ) . ( two ) summer ( March-June ) . ( three ) south-west monsoon season ( June-September ) . and ( four ) station monsoon season ( October- November ) Terrain: The mainland comprises of four parts. viz. the great mountain zone. fields of the Ganga and the Indus. the desert part. and the southern peninsula. Natural Resources: Coal. Fe ore. manganese ore. isinglass. bauxite. crude oil. Ti ore. chromite. natural gas. magnesite. limestone. cultivable land. dolomite. heavy spars. china clay. gypsum. apatite. phosphorite. soapstone. fluorspar. etc. Political Profile: –

State Name: Republic of India ; Bharat Ganrajya
Government Type: Democratic Republic with a Parliamentary system of Government. Administrative Divisions: 28 States and 7 Union Territories. Fundamental law: The Constitution of India came into force on 26th January 1950. The Fundamental law of India is the fountain beginning of the legal system in the Country. Executive Branch: The President of India is the Head of State. while the Prime Minister is the Head of the Government and runs office with the support of the Council of Ministers who forms the Cabinet. Legislative Branch: The Federal Legislature comprises of the Lok Sabha ( House of the People ) and the Rajya Sabha ( Council of States ) organizing both the Houses of the Parliament. Judicial Branch: The Supreme Court of India is the apex organic structure of the Indian legal system. followed by other High Courts and low-level Courts. National Days:

* 26 Thursdaies January ( Republic Day )
* 15 Thursday August ( Independence Day )
* 2 nd October ( Gandhi Jayanti ; Mahatma Gandhi’s Birthday )

Demographic Profile
Population ( Census 2011 ) : 1210. 19 Million
Males: 623. 7 Million.
Females: 586. 5 Million
Density of Population ( Census 2011 ) : 382 Persons ( Per Square Kilometer ) Literacy Rate ( Census 2011 ) : 74. 04 Percentage
Males: 31. 98 Percentage.
Females: 49. 1 Percentage