¶ … economic indicators: housing starts and personal income. A brief definition is given of each, as well as the current state. In addition, historic charts are presented with data for both indicators. Economic Indicators

Define housing start economic indicator. Describe its current status. In addition, present a separate graph illustrating the historic trend for housing starts.

US Housing starts figures are reflective of the number of residential units, on which construction is began, for a specific time period. These starts are reported by the Bureau of the Census around the 16th of each month. Economists forecast housing starts by using the current month's permits to predict starts. Typically, building permits run in tandem with building starts. Housing starts are considered to be a leading indicator of the economy ("Housing starts," 2000).

A drop in mortgage rates is often followed by an increase...

During turning points in the business cycle, financial markets often watch this indicator closely. "Bond prices react negatively to strong housing start data because it is a signal of economic growth. When housing starts decline, bond market traders react favorably, pushing up prices and causing yields to fall. Equity markets, in contrast, are inspired by news of economic growth. Therefore, strong housing starts and permits generally lift stock prices" ("Housing starts," 2000). The housing starts in the United States have been on a fairly steady rise since 1992.
Figure 1: Historic Housing Starts Data

(Source: "New privately owned," 2005).

Define personal income economic indicator. Describe its current status. In addition, present a separate graph illustrating the historic trend for personal income.

Personal income is reflective of the compensation that…