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What is a key economic indicator?

Key economic indicator

A set of important economic data, put together by a reputable source, that helps investors gauge the fundamental strength of a particular economy. Often published monthly or quarterly, these data-sets can influence investor confidence, potentially pushing markets up or down.

Where have you heard about key economic indicators?

You'll see the FTSE 100 and other major share indices move upwards or downwards depending on the strength of key economic data. For example, a dip in official employment figures could worry investors and cause a market to fall.

What you need to know about key economic indicators.

When reviewing the performance of an economy, investors have a broad range of industry surveys available, covering everything from manufacturing through to retail sales and exports.

But rather than sifting through reams of data, there are a handful of key economic indicators which can provide them with a much quicker snapshot of an economy's fundamental strength. These tend to include employment, inflation, consumer confidence and gross domestic product (GDP) data. Oil prices are also widely followed by investors when reviewing the state of the global economy.

Find out more about key economic indicators.

Inflation and growth data can both influence investment decisions. For more information on these key economic indicators, see inflation and GDP.

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