Economic News is the popular term for reports that focus on current economic activity. The economic news media are primarily the outlets dedicated to economic news reporting. They mainly concentrate on aggregate economic information, including gross domestic product (GHDP), employment rates, inflation, and overall economic activity. These are used by business organizations, central banks, financial institutions, media outlets, and consumers to become more aware of economic activities affecting them. Financial newspapers are primarily economic news portals while financial magazines are oriented towards business news.
The analysis of economic news helps in providing forecast of any upcoming economic change. The forecasting of any economic change is basically of two types – the theory of general significance and relative importance. The theory of general significance looks at the volume of trading that is currently going on in the market. On the other hand, relative importance looks into the forecast impact on factors like the stock market, real estate, international trade, personal income and spending habits, and other related factors.
Economic News based forecasts on real-world economic indicators are considered more accurate than ones based on theories. Accordingly, a good piece of economic news can significantly impact market prices, prompting the traders to react accordingly. As such, these provide valuable information on the market changes. When coupled with relevant and current real-world economic indicators, this type of forecast helps traders to take appropriate actions.
Economic news also provides a ready source of information for the business community on government policies, tax rules, various reforms, introduction of new laws, and announcements by various government authorities on various aspects of the economy. Economic news articles are extensively used by business persons to understand the nature and prospects of the economy in different countries. It is not just a piece of news that is being reported; rather, it is an informative article that helps traders and business persons to understand the status of the economy in different countries. Economic news articles, therefore, play a very important role in the development of various economic indicators and forecasts.
Economic news is regularly published by different newspapers, magazines, and other media across the country. However, the value of economic news articles is often underestimated as they are mostly reported as isolated facts, with no pattern or sequence of events and trends. For instance, while one economic news report may highlight that the rate of interest has been increased in some state, the associated rates of growth and price of commodities may remain fairly constant.
The economic future trends depend on the extent of sensitivity toward any given issue and its implications on the whole economy. Economic news becomes important to the public because it affects their decision-making about purchasing power and about any future changes in taxes or tariff structures. For example, news reports that suggest sharp increases in tariffs on imports could prompt the public to reevaluate its commitment to import-intensive industries. Similarly, sudden changes in wholesale pricing could make consumers sensitive toward particular products. But if the price increases are temporary, the consumers will still purchase them in order to protect their purchasing power and thereby increase its demand.
Economic news becomes important to journalists because of two different factors. First, the importance of economics in the overall atmosphere of the news media means that journalists need to pay special attention to economic issues. Second, the nature of the news media means that even if economic issues are of minor importance, other aspects of the news may become important. For instance, when a story involves a major political event or a war, there is usually an automatic focus upon economic developments.
Economic reporting, therefore, has two significant dimensions – the need to be sensitive to economic developments and the necessity to convey relevant information in a clear and readable format. The importance of economic information in the public debate is reflected in the fact that journalists are more likely to be invited to discuss economic issues than they were 20 years ago. However, this is not the only reason for journalists’ sensitivity to economic issues. Economic reporting also has a social aspect – the need to provide a certain amount of information about human welfare and the environment. Economic news can therefore influence the way society as a whole views these issues. Whether or not the impact of economic news is positive or negative will depend largely on the extent to which the journalists’ social attitudes reflect the information they are reporting.