Economic indicators and the Business Conditions Digest Available to Purchase

All enterprises, whether multimillion‐dollar corporations or small mom and pop businesses, have their ups and downs over the course of time. In the event of a single business failure, the effect on the local economy would likely be minimal. In the unfortunate event of multiple business failures or a recession, however, the negative effects on the local economy could be severe. To forecast and predict business fluctuations such as recessions, economists employ economic or cyclical indicators. These are trends based upon statistical data collected regularly on various aspects of the economy (e.g., employment, income, prices, industrial production, and manufacturing inventory).