What indicator is the most accurate measure of the well being of the economy?

Answer 1

There is no such single indicator.

Many things can be looked at and evaluated. Unemployment, job growth, the stock market, corporate profits, productivity, inflation, interrest rates and so forth. Focusing on one or a few indicators can make a 'sick' economy look 'healthy' or vice versa.

Answer 2

There are a number of factors.

Consumer confidence is at 105%
The GDP has been growing faster than the national debt, it is almost two trillion dollars geeater than in 2000, and increase of almost 10%.
Personal savings are up (if 401Ks, IRAs and similar self funded retirement programs are counted as savings).
The DJIA is at all time record high.
Earning wages are up.
Inflation is low and is lower than wage increases.

Housing foreclosures are up dramatically but in proportion to the number of first time house buyers in the previous 5 year period.

If I were to pick one individual number I'd look at the DJIA. The economy is only strong as long as investors are confident and putting their money into the market. Once the market confidence is lost and investments go elsewhere the entire economy begins to feel the effects.

Answer 3

Williams makes a very valid point , but I believe either of the two would be good indicators without Jesters point with Consumer confidence issue.

Answer 4

There really isn't one indicator.

GDP Growth is important, but so is price stability (measured by inflation through CPI and PPI).

Unemployment is also a big issue.

Answer 5

The plummeting U.S. dollar (thanks to "conservatives" like George W. Bush that deficit spend until the USA is virtually destroyed).