Economic Indicator Forecast The six economic indicators of housing starts, mortgage rates, retail sales, interest rates, personal income and the foreign exchange rate. Will discuss each economic indicator and compare and contrast two different 18-month forecasts for each. The differences between the forecasts will be analyzed and the reasons why we believe one forecast over another. Housing Starts The home building industry has been doing very well. This is in part because of the availability …showed first 75 words of 2100 total…

…showed last 75 words of 2100 total…rates will increase from 5.9% in 2005 to 6.2% in 2006; in retail, home prices as well as new home sales will continue to rise; interest rates should start increasing over the next 12 to 18 months; personal income will start to increase once the energy prices come down and employment continues to improve; and regarding the foreign exchange rates, the U.S. dollar should maintain strength against the euro for now, but in 2006, additional dollar weakness is likely to occur.