Learn About Economic Indicators with a Business Administration Degree

May 26th, 2011 by Clifford
 Business administration degrees can prepare students for a variety of careers. Whether you are working as an investment advisor, an economist, or in any position where you need to track the health of various economic sectors, there is one thing you will need to know: how to read economic indicators. While a business degree is probably the best way to learn how to use these indicators, learning about them before you get started in business administration college can help you get a leg up on the competition.

In general, economic indicators consist of various data about employment, prices, and confidence among businesses and consumers, among other measures of economic activity. However, because these indicators are released by so many different sources, and consist of many different kinds of data, learning how to read them is very important in evaluating what they really mean for the health of the economy.

For example, one of the most important economic indicators is the Consumer Confidence Index. This is one of the only major indicators that measures the attitude of everyday consumers toward the economy. Although it has historically been a good predictor of consumer spending, and thus the health of the economy (since so much of the U.S. economy is based on consumer spending), the sample size is small and its data somewhat subjective. This means that with a business degree you will generally learn that you should look at several months’ worth of Consumer Confidence Indexes before drawing any conclusions about the economy.

As another example, another important indicator is the Federal Reserve’s “Industrial Production” and “Capacity Utilization” reports. These reports can be used to track a variety of trends, from price inflation to the relative health of various manufacturing sectors. However, because this report only tracks data from industries that produce physical goods (as opposed to service industries), it only includes about half of the U.S.’s economic activity.

As we can see, the common thread between economic indicators is that they all have their strengths and weaknesses. Each economic indicator must be read keeping these strengths and weaknesses in mind in order to gain a complete sense of what a particular indicator means. A business administration degree from an accredited business administration college or online school can help you read these economic indicators with confidence, and prepare you for many different careers in exciting business administration and related fields. Go to US College Search to find out more or find a school in your zip code.

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