You can't turn on the news or pick up a newspaper at the moment without been told another economic statistic which indicates the current state of the economy. Business reporters love to quote repossession rates, the rise and fall in average house prices, unemployment figures and even the amount of new mortgage applications this month compared to last.
Using financial indicators are basically a way to quantify what I describe as the economic vibe. You know, the economic vibe, that's the feeling you get about the state of the economy through conversations with others or your own finances that the economy is doing well or not.
If you and your friends are buying new cars, going on exotic holidays or dabbling in the stock market the vibe is good. If your friends can't sell their cars, are driving to Blackpool for their holidays and lost their shirts in the stock market your economic vibe is bad. All you need to do is turn on the news to hear the latest unemployment figures and your vibe is confirmed.
As a handyman service we have our own non-financial indicators which confirm our vibes about how things are going. We look at the amount of bookings that came in this week versus last, the increase or decrease in the average length of jobs, the percentage of time billed out versus dead time. Lately I've noticed that significantly less people asked us to hang LCD screens for them in February than did in January. This may just be because there were so many good deals to be had on LCD screens in the January sales that everyone who was going to buy a LCD TV did so last month. But it could also indicate that there is less disposable income out there for luxury goods like new 55" Flat Screens. Truthfully, it must be a bit of both, but the vibe I get is not a good one.