Financial indicators are metrics used to assess the economic health of a business, industry, or economy. They provide insights into performance and trends, helping stakeholders make informed decisions. Common financial indicators include Gross Domestic Product (GDP), unemployment rates, and inflation rates.
These indicators can be categorized into leading, lagging, and coincident indicators. Leading indicators, like stock market performance, predict future economic activity, while lagging indicators, such as corporate profits, reflect past performance. Coincident indicators, like retail sales, move in sync with the economy, providing a real-time snapshot of economic conditions.