How can you trust economic indicators and indexes?

2 Why are economic indicators and indexes important?

Economic indicators and indexes are important because they provide information and insights about the past, present, and future conditions of the economy. They can help you understand the causes and effects of economic events, the strengths and weaknesses of different sectors or regions, the opportunities and risks of various markets or investments, and the goals and challenges of different policies or strategies. They can also help you compare and contrast the performance and progress of different countries or groups, using common standards and benchmarks.

4 How can you evaluate economic indicators and indexes?

Economic indicators and indexes are not perfect or objective; they are based on assumptions, methods, and sources that may vary, change, or contain errors, and are also subject to revisions, updates, or corrections that can alter their values or meanings. Therefore, you should always evaluate them critically and carefully. When doing so, consider the relevance of the indicator or index in relation to the economic concept or phenomenon you are interested in. Look at the accuracy of the data it is based on - how reliable and precise is it? How often and timely is it collected and published? Also consider the interpretation of the indicator or index - what factors or variables influence its value or direction? What implications or consequences come with its changes or differences?

5 How can you use economic indicators and indexes?

Economic indicators and indexes are useful tools for decision-making and communication, but they should be used with caution and curiosity. They are only part of the economic story, not the whole picture, and must be complemented by other sources of information and knowledge such as historical trends, qualitative analysis, expert opinions, or personal experiences. Additionally, they need to be balanced and nuanced by other perspectives and values, such as ethical, social, or environmental considerations. When using these indicators and indexes, it is important to consider their purpose and scope, assumptions and limitations, similarities and differences to other indicators or indexes, risks and opportunities associated with them, as well as the benefits and challenges of using them in communication or argumentation.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?