I have been reading quite a bit recently about indirect economic indicators for growth, boom and bust within the economy.
Some interesting examples;
- Hairdressers, coffee shops, art galleries (in order) – On a local level, this can be an indicator of increasing disposable incomes. However rapid expansion could be a sign of boom and potential bust in the economy.
- Baltic Dry Index – Measures shipping volumes. A great indicator of global trade. (we are in a slow down now)
- Skyscraper Index – Measures national aspirations, economic expansion, and bubbles. The more skyscrapers being built the higher the likelihood of economic recession it seems.
These indicators are informative and in many ways can leading indicators of issues we need to watch for.
The skyscaper index is of particular concern when contrasted against the building boom in Toronto.
Another potential indicator pointing to the need to stay prepared.