If you looking for what is going on with the US economic situation, these 4 indicators will be a good reference.

Unemployment Rate

At the end of January 2011, the unemployment rate of US stood at 9%, slightly lower than average rate of 2010 (9.6%) but still 2.5 times to the “tech-boom” period in 2000. Worst of it is, as economist reported, nearly half of those out of work have been jobless at least six months. This means a flow of short-term unemployment caused by the economic crisis is turn to be permanent unemployment – a record number and a very not-feel-good statistics to the government.

The unemployment rate recording high with the bad tendency of temporary unemployment turns to be long-time unemployment.

Personal Savings Rate

Over the 30 years, the personal savings rate reach the highest point in 1981 with 12.2%, and nearly down up to zero in 2005, the lowest point over the history. The personal saving shows some rise since then while American become more and more worried about the economic situation and started to “save for a rainy day”. By the end of 2010, Americans personal saving stays at 5.3%

Personal saving rate goes down when you borrow money to pay bill and refill your credit card. Over the decades, the personal saving has been fluctuated with downward trend.

Industrial production (IP) measures the change in output of tangible goods in society, which sounds uncommon term. Unrelated to any of you personally, but it can be interpreted in simple explanation as the volume of packages you send and receive, the number of trucks and freight trains you pass, and the amount of smoke you see being pumped into the air. The driving forces of IP is economic strength of economy. Sometimes it’s affected by accidental non-economic shocks such as hurricanes and oil rigs shut down in other countries. The current IP index is quite good, and if it continues to raise, we can expect the economic situation will get better and better.

IP is affected mostly by economic weakness and strength, consumer demand, the cost and availability of credit

The Home Price

The housing price reaching the peak in 2005 made the real-estate market go in rage. Many investors spent all their cash and borrowings into the market in hope to take advantage of housing price fever. Suddenly, the financial crisis hurt the house prices deeply along with the break-down of many real-estate investors. Recently, the home prices began stabilizing and economists expect it would only change modestly in coming years.

To most people, the most valuable asset is not stock or bond portfolio but the house. In fact, house price reflects quite practically the economy situation

Related links:

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President Obama And Economic Crisis Of America