1. Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions.
2. It's a leading indicator of consumer inflation - when manufacturers pay more for goods the higher costs are usually passed on to the consumer.
3. Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers.
4. Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity.
5. It's a leading indicator of economic health - production reacts quickly to ups and downs in the business cycle and is correlated with consumer conditions such as employment levels and earnings.
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