economics

Running Head : Economic Indicator Forecast - Airline Industry

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Economic indicators are various layers of statistics that provide insight and information into how an economy is functioning . An economist might use economic indictors to paint a picture of current economic performance , or make future economic predictions . This is a pro of six economic indicators : Gross Domestic Product (GDP unemployment rate , Inflation rate as measured by consumer price index Dow Jones Industrial Average (DJIA ) and capacity utilization and producer price index . This information will be

valuable in improved appreciation of the airline industry (Button , 1991

The U .S Airline Industry has been in chaotic state for a number of years . In 1993 , the US government indicated that the industry had lost huge amounts of money in the past three years and it has never made a sustained , substantial return on investment (Caves , et al , 1997

In the airline industry trade association , the loss from 1990 through 1994 was about 13 Billion , while from 1995 through 2000 the airlines earned about 23 Billion and then lost about 35 Billion from 2001 through 2006 . This is according to according to the Air Transport Association . Consequently , the association expected about a 10 billion loss in 2005 (Caves , et al , 1997 : Button , 1991

The US National economy is highly dependent on commercial aviation which is directly responsible for 5 .8 of gross out put , 5 .0 of personal earnings and 8 .8 of national employment . Commercial aviation ultimately drove 1 .2...