Economic Indicators
Savings Rate
Economic Indicator- the savings rate is the income that is not spent and is instead differed for consumption. In some instances, saving can also include reducing recurring costs such as a cell phone, or cable bill. In essence, individuals preserve money now, for a predetermined use in the future. This money is usually deducted from an individual’s disposable income to use for future investment. The savings rate is an economic indicator of individual’s propensity to save. This has implications in regards to the overall indebtedness of the nation. It can also indicate the purchasing power available for discretionary purchases.
Rate of Value — 3.4% as of October 2012
Source of Information -U.S. Bureau of Economic Analysis,
“United States Personal Saving Rate.” United States Personal Saving Rate. N.p., 7 Jan. 2013. Web. 02 Feb. 2013.
d. Date of information- January 7, 2013
a. Economic Indicator- the prime interest rate is a universal interest rate that applies to banks and other financial institutions. This rate is usually the rate that is used to lend to favored customers with high credit quality. The prime rate is a universal interest rate that applies to all financial institutions irrespective of geographic location. The prime rate is also an indicator of overarching fiscal and monetary policy. To encourage spending and refinancing, the prime may become lower. If the rate is raised, the cost of borrowing increases, which ultimately tapers consumer borrowing efforts.
b. Rate of Value- 3.25%
c. Source of Information- “Prime Lending Rate.” Prime Lending Rate. N.p., 30 Jan. 2013. Web. 02 Feb. 2013.
d. Date of information- January 30, 2012
3) Mortgage Rate
a. Economic Indicator- the mortgage rate is usually applied to a fully amortizing mortgage loan where the interest rate either remains fixed or “floats.” With single fixed rates, the individual benefits from a constant rate of interest. Floating rates however are variable and often change due to the economic circumstances prevailing during the period. Much like the prime rate, the mortgage rate can be used to encourage and discourage lending. A lower rate, as is currently prevailing today, encourages consumers to refinance or enter into fixed rate mortgages.
b. Rate of Value- 3.60%
c. Source of Information- Reddin, Tom “Insights on U.S. Mortgage Rates from Tom Reddin.” Mortgage Rates RSS. N.p., 30 Jan. 2013. Web. 02 Feb. 2013.
d. Date of information- January 30, 2012
4) Treasury Bill Rate
a. Economic Indicator- Treasury Bills are the debt financing instruments of the United States government. Treasury Bills are unique as they mature in one year or less. They do not pay interest, but are instead issued at a discount to par value. Investors in general, consider treasury bills to have very limited risk as they are backed by the full faith and credit of the . Treasury Bills are also used by many large companies as a use for short-term cash or emergency funding. Low treasury rates may indicate a growing need for monetary policy to discourage savings. With low rates, savings may elect instead to consumer, or invest in higher yield securities. Low rates also help the government in regards to overall repayment. As inflation continues its upward tread, treasury bills, in many instances, offer investors will a negative real rate of return. As such, the government is able to get money today, and pay it back in depreciated dollars at a later date.
b. Rate of Value- .14%
c. Source of Information-“Resource Center.” Daily Treasury Bill Rates Data. U.S. Department of the Treasury, 01 Feb. 2013. Web. 02 Feb. 2013
d. Date of information- February 1, 2013
5) Per Capita Income-
a. Economic Indicator- Per capita income usually refers to the overall average wealth of a nation. This measure is particularly useful in comparison to other nations. It is generally referred to as the income per person within a sovereign territory. This economic indicator can be used to determine inequality within a given region or area. It can also be view the capacity for individuals within a particular nation to consume
b. Rate of Value- $41,560
c. Source of Information- “Per Capita Personal Income U.S. And All States.” Per Capita Personal Income U.S. And All States. Bureau of Business & Economic Research, 12 Oct. 12. Web. 02 Feb. 2013.
d. Date of information- September 2012
6) Housing Starts-
a. Economic Indicator- Housing starts are usually indicated by the number of privately owned, new houses, under construction within a given period. This data is usually comprised of three, very distinct components of , condos, and apartment buildings. Housing starts are very important economic indicators as housing is a substantial component of the middle class family’s net worth. Home ownership is also a means by which are other industries are successful. Aspects such as carpet, brick, appliances, lawn care, and others, all benefit from a robust housing market. As such, housing, and housing related industries comprise a substantial amount of the overall nations GDP. Housing starts, therefore, indicates future demand for housing related goods and services.
b. Rate of Value- 780,000 units started in 2012 which is a 28% increase above 2011 levels
c. Source of Information- U.S. Department of Commerce- Cooper, Stephen. Census.gov. U.S. Department of Housing and Urban Development, 17 Jan. 2013. Web. 2 Feb. 2013.
d. Date of information- January 17, 2003
7) Unemployment Rate
a. Economic Indicator- the unemployment is the number of individuals out of work who are actively seeking work. This number does not account for individuals who have given up searching for work altogether. The number is calculated by dividing the number of unemployed by those who are actively in the labor market. The unemployment is a key economic indicator as it relates to the overall supply and demand for goods and services. When demand is relatively low for services, the supply of is usually too high. Those massive layoffs occur as companies adjust to the prevailing circumstances of the time. As such, during recessions, unemployment is usually relatively high in relation to historical norms.
b. Rate of Value- 7.9%
c. Source of Information- “Labor Force Statistics from the Current Population Survey.” Bureau of Labor Statistics. 2012-06. http://data.bls.gov/timeseries/LNS14000000. Retrieved 2013-02-02
d. Date of information- Feb, 2013
8)
a. Economic Indicator- Disposable personal income is the money leftover after the deduction of bills and taxes. This amount usually indicates and individuals ability to purchase discretionary items. This amount varies from individual to individual. However, it is generally perceived that the greater amount of disposable income and individual has, the more apt they are to consumer on discretionary items. Clothing, entertainment, and leisure all account for this spending. This economic indicator allows the observer to see how much purchasing power an individual has after the basic necessities of life are taken care of.
b. Rate of Value- $353 Billion, up 2.6% from December
c. Source of Information- Bureau of Economic Analysis, Rankin, James. “News Release: Personal Income and Outlays.” News Release: Personal Income and Outlays. N.p., 31 Jan. 2013. Web. 03 Feb. 2013
d. Date of information- January 2013
References:
1) Cooper, Stephen. Census.gov. U.S. Department of Housing and Urban Development, 17 Jan. 2013. Web. 2 Feb. 2013.
2) “Insights on U.S. Mortgage Rates from Tom Reddin.” Mortgage Rates RSS. N.p., 30 Jan. 2013. Web. 02 Feb. 2013
3) “Labor Force Statistics from the Current Population Survey.” Bureau of Labor Statistics. 2012-06. http://data.bls.gov/timeseries/LNS14000000. Retrieved 2012-06-15
4) “Per Capita Personal Income U.S. And All States.” Per Capita Personal Income U.S. And All States. Bureau of Business & Economic Research, 12 Oct. 12. Web. 02 Feb. 2013
5) “Prime Lending Rate.” Prime Lending Rate. N.p., 30 Jan. 2013. Web. 02 Feb. 2013.
6) Rankin, James. “News Release: Personal Income and Outlays.” News Release: Personal Income and Outlays. N.p., 31 Jan. 2013. Web. 03 Feb. 2013
7) “Resource Center.” Daily Treasury Bill Rates Data. U.S. Department of the Treasury, 01 Feb. 2013. Web. 02 Feb. 2013
8) “United States Personal Saving Rate.” United States Personal Saving Rate. N.p., 7 Jan. 2013. Web. 02 Feb. 2013.
