The Economy: Why it feels even worse

In late October, CNN's Ali Velshi and Erica Fink looked at five key measures of the economy to see how bad it really was. Now, they look again at the CNN "Real Feel Economic Index" and find it's tougher still.

1 of 7
BACKNEXT

As you've heard us and others report, the U.S. economy, more so than other worldwide economies, is dependent on spending decisions made by consumers. Consumer behavior drives spending habits, spending habits drive corporate profitability, and corporate profitability drives the stock market.

Success in the stock market is one of those things that make Americans feel better about the economy, along with increases in wages (not happening) and increases in home prices (also not happening).

Typically, we measure economic strength or weakness using the GDP, or Gross Domestic Product, which is historically thought of as the broadest measure of economic activity.

But, while GDP may be a good measure of the whole economy (and it may not be, but that's another story), it doesn't reflect all the things that matter to you.

In the fall, we took a look at five measures of the economy that reflect how things really are out there, to see if your fears and concerns are justified. The measures we chose are those that we "touch" on a daily basis.

We looked at how the economy is affecting you, via jobs, personal income, personal savings, industrial production, and home prices.

We charted them on a scale of 0-to-10: 0 being the worst that each of them has been since 1980; 10 being the best.

1980 was our starting point because experts agree that the economy before then was so different from what it is now that it would be like comparing apples and oranges.

Now, over a year into the recession, we're taking a look at it again.

We call it the CNN "Real Feel Economic Index."



NEXT: Jobs

Last updated October 23 2009: 4:39 PM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
Top-paying jobs Orthopedic surgeons take home a median $410,000 in salary and bonus annually. What other great careers from CNNMoney and PayScale.com's list of Best Jobs in America offer hefty paychecks? More
Fastest-growing jobs Demand for IT security consultants are projected to grow a solid 37% between 2012 and 2022. What other careers on CNNMoney and PayScale.com's list of America's best jobs will see big opportunities? More
Best Jobs in America CNNMoney/PayScale's top 100 careers with big growth, great pay and satisfying work. More

Special Offer

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2015 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2015. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2015 and/or its affiliates.