May 27, 2009
Posted: 720 GMT
We introduced the QI – Quest Indicator last night. Our very own set of traffic lights built in the QMB studio. Is this a gimmick or a real tool to help us understand what is going on?
When important economic numbers are released we will ask economists and analysts that we have come to know and trust which light best describes the situation.
A Red light clearly shows we are stuck in recession. Economies are still contracting. The Amber light means that we are bumping along the bottom. Things are no longer getting worse – but they are not really getting better yet. The Green light obviously shows we are moving forward and growing again.
So for instance, why did we give a RED light when yesterday’s U.S. consumer confidence number rose sharply? Because this leading economic indicator is fragile, anecdotal and often reverses itself in subsequent months. It was also tempered by housing numbers which showed the true existing position. Our analysts – not me or my producer – felt it was a RED.
On any single day we might not get it quite right. A red instead of an amber. An amber when a green is called for. But if you are a regular viewer then the QI – Quest Indicator – is now part of our show.
Traffic Lights – Not a gimmick but an important way we can show you what’s happening on the road to recovery.