Series 65 Economic Indicators Cheat Sheet
- April 1, 2025
- Posted by: 'FINRA Exam Mastery'
- Category: Finance
Series 65 Economic Indicators – Cheat Sheet
Economic indicators are a key part of the Series 65 exam. These data points help analysts, advisors, and regulators evaluate the health of the economy and forecast future trends. Understanding how to interpret them—and knowing which are leading, lagging, or coincident—is essential for success on the exam.
This cheat sheet highlights the most important economic indicators tested on the Series 65 and how to use them.
📈 Leading Indicators
These signal changes before the economy moves in a particular direction. Often used to predict future trends.
| Indicator | What It Shows |
|---|---|
| 📦 New Orders for Durable Goods | Business investment trends |
| 🧑💼 Initial Jobless Claims | Changes in employment demand |
| 🧱 Building Permits (New Housing Starts) | Future construction activity |
| 📦 Manufacturers’ New Orders | Changes in production expectations |
| 🪙 Stock Market Returns | Investor confidence and future expectations |
| 💵 Money Supply (M2) | Liquidity and potential inflation |
| 🛍 Consumer Expectations Index | Anticipated consumer behavior |
📊 Coincident Indicators
These reflect the current state of the economy. They rise or fall with economic activity.
| Indicator | What It Shows |
|---|---|
| 🏭 Industrial Production | Manufacturing strength |
| 💼 Nonfarm Payrolls | Employment levels across sectors |
| 💸 Personal Income (excluding transfers) | Real income trends |
| 🛍 Retail Sales | Consumer spending activity |
| 🕒 GDP (Real Gross Domestic Product) | Overall economic performance (may lag slightly, but often grouped here) |
📉 Lagging Indicators
These change after the economy has already begun a new trend. Useful for confirming patterns.
| Indicator | What It Shows |
|---|---|
| 💰 Unemployment Rate | Confirming labor market direction |
| 📈 Consumer Price Index (CPI) | Confirms inflationary pressures |
| 💳 Average Duration of Unemployment | Labor market weakness or strength |
| 🏦 Prime Rate | Follows Fed policy changes |
| 🪙 Commercial and Industrial Loans Outstanding | Business borrowing activity |
| 🕒 Unit Labor Costs | Pressure on corporate profitability |
🧠 How to Use This on the Exam
Expect questions that ask:
- “Which of the following is a leading economic indicator?”
- “An increase in building permits is most likely to indicate…”
- “Which indicator would confirm that a recovery is underway?”
Know how to:
- Categorize each indicator
- Match indicators to phases in the economic cycle
- Interpret their meaning for investment strategy decisions
🚀 Need More Exam-Ready Resources?
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