economic indicators

The US economy generates dozens of economic indicators each month, from the jobs report to PCE to the federal funds rate. For investment professionals and RIAs, the question is which ones actually drive portfolio decisions and client conversations.

This glossary covers the indicators every US advisor should know, including the definitions, release schedules, and issuing agencies. Read on for the full breakdown, or scroll to the bottom for the latest news.

What are economic indicators?

Economic indicators are statistical measures that show the health, performance, and direction of an economy. They cover output, prices, employment, consumer activity, and trade. They are also used by investment professionals to inform portfolio positioning, asset allocation, and client conversations. Most readings are released monthly or quarterly by US government agencies and private bodies.

The main issuers you’ll see referenced in this glossary are:

• Bureau of Economic Analysis (BEA)
• Bureau of Labor Statistics (BLS)
• Federal Reserve
• US Census Bureau
• Conference Board

Each agency owns a specific slice of the data. Most reports follow a fixed monthly or quarterly calendar that markets price in ahead of release.

For a closer look at how top advisors put this kind of macro data to work, check out our special report on the top RIA firms in the US.

3 types of economic indicators

Economists and analysts sort economic indicators into three buckets based on timing. Each type tells you something different about where the US economy stands and where it might head next. Knowing the difference helps you read each release in the right context.

1. Leading indicators

Leading indicators move before the broader economy shifts and give you an early read on the next six to nine months. Investment professionals use them to spot turns in the cycle ahead of consensus. These include:

• building permits: signal future construction activity and homebuilder confidence
• stock market indexes: reflect investor sentiment about future corporate earnings
• Purchasing Managers’ Index (PMI): survey-based read on factory and services activity
• initial jobless claims: weekly read on labor market stress
• yield curve: the 10-year Treasury minus federal funds rate spread

2. Coincident indicators

Coincident indicators move at the same time as the broader economy and confirm the state of activity right now. They form the backbone of most quarterly client updates. These include:

• gross domestic product (GDP): the total value of US goods and services produced
• retail sales: monthly read on consumer spending across categories
• industrial production: output from factories, mines, and utilities
• nonfarm payrolls: monthly count of jobs added across most sectors

3. Lagging indicators

Lagging indicators confirm trends after the economy has already shifted. They’re useful for verifying whether a slowdown or recovery has taken hold. Some examples are:

• unemployment rate: percentage of the labor force jobless and seeking work
• Consumer Price Index (CPI): measures changes in the cost of a basket of goods
• corporate profits: reflect past business performance over a quarter

For more news and updates that affect RIA firms, visit and bookmark our goRIA section.

Key economic indicators every US investor should know

Dozens of economic indicators get released each month, but a smaller group does most of the heavy lifting on portfolio decisions. The indicators below show up in nearly every Fed statement, earnings call, and market commentary you’ll read. Each is issued by a specific agency and follows a fixed release calendar.

1. Gross domestic product

GDP measures the total value of goods and services produced in the US economy. The BEA releases the figures quarterly, with three estimates per quarter as more data comes in.

Nominal GDP shows the raw dollar figure, while real GDP strips out inflation to show actual growth. Real GDP grew at a 2.0 percent annual rate in the first quarter of 2026, according to BEA.

2. Consumer Price Index

The CPI tracks changes in the prices US consumers pay for a fixed basket of goods and services. The BLS releases the index monthly.

Headline CPI is the most-cited inflation number in the press. Advisors watch both the headline figure and core CPI, which strips out food and energy. The 12-month change peaked at 9.0 percent in June 2022 and has stayed below 3.0 percent since June 2024.

3. Personal Consumption Expenditures (PCE) Price Index

The PCE Price Index measures price changes for goods and services bought by US consumers, but with a different weighting and broader scope than the CPI. The BEA releases the index monthly as part of the Personal Income and Outlays report.

The Federal Reserve treats core PCE as its preferred inflation gauge when setting policy. This makes the monthly PCE release a high-stakes data point for fixed income and rate-sensitive equity positioning.

4. Producer Price Index (PPI)

The PPI measures price changes from the seller’s perspective, covering output across nearly every goods-producing sector of the US economy. The BLS releases the figures monthly, usually a day or two before the CPI. Producers tend to pass price changes to consumers, so PPI is often used as an early warning for where consumer inflation is headed.

5. Unemployment rate and nonfarm payrolls

The monthly jobs report from the BLS bundles two of the most-watched economic indicators in one release. Nonfarm payrolls show how many jobs were added or lost across most US sectors during the prior month. The unemployment rate shows the percentage of the labor force jobless and actively seeking work.

6. Federal funds rate

The federal funds rate is the rate banks charge each other to borrow reserves overnight at the Federal Reserve. The Federal Open Market Committee (FOMC) sets the target range across 8 scheduled meetings a year.

The federal funds rate is the cornerstone of US monetary policy and the single biggest input into bond yields, mortgage rates, and equity valuations. Meeting minutes are released three weeks after each meeting and often move markets on their own.

7. Purchasing Managers’ Index (PMI)

The PMI is a monthly survey of senior executives that measures factory and services activity. Respondents answer questions about new orders, production, employment, inventories, and supplier deliveries.

A reading above 50 signals expansion, while a reading below 50 signals contraction in the surveyed sector. The Institute for Supply Management (ISM) and S&P Global both publish widely followed PMI readings each month.

The table below summarizes the full set of US economic indicators most investment professionals track, including the type, issuer, and release frequency.

For deeper rankings, profiles, and analysis of the firms shaping the US wealth space, browse our Best in Wealth special reports.

How investment professionals use economic indicators

Economic indicators feed almost every decision you make on behalf of clients. The trick is knowing which release matters for which decision and how to frame the number when clients call after the headlines drop. The three areas below show where this work happens day to day:

1. Portfolio positioning and sector rotation

Leading indicators help you spot turns in the cycle before they show up in returns. A PMI reading slipping below 50, a steady climb in initial jobless claims, or a flattening yield curve all flag late-cycle conditions.

Advisors often use these reads to tilt toward defensives like consumer staples, utilities, and healthcare. They also use them to steer away from cyclicals like industrials and consumer discretionary. Active ETFs have given advisors more tactical flexibility to make these shifts at the sector level.

2. Fixed income and rate-sensitive decisions

The federal funds rate, CPI, and PCE drive almost every bond duration call you make. A softening jobs report or a cooler PCE reading raises the odds of Fed rate cuts, which usually favors longer duration and higher-quality credit. A hotter inflation print pushes the opposite way.

3. Client communication and expectation-setting

How a reading compares to expectations matters as much as the number itself. A 3.0 percent CPI print can move markets up or down depending on what the consensus forecast was.

Frame each release for clients in three parts:

1. the headline number
2. the consensus expectation
3. how it compares to the prior period

This keeps the conversation grounded and reduces the urge to react to noise.

For more advisor-focused coverage and to network with the best in the US wealth space, sign up for our upcoming InvestmentNews Awards.

What economic indicators mean for client portfolios

The economic indicators we covered do most of the work behind the scenes of any advisory practice. These readings shape how you position portfolios, set duration, and brief clients each quarter.

Track the release calendar, watch how each print compares to expectations, and tie the data back to the decisions in front of you. This is how economic indicators stop being headlines and start working for client portfolios.

Read the latest news on economic indicators below