Which economic indicators are the true predictor of the US election outcome

<p>Goldman Sachs economists say that economic indicators are a better forecaster of election outcomes, but only if you are looking at the right ones: </p><ul><li>“The real economy matters more than financial markets. Broad economic variables like income, employment, and consumption matter more than market-based measures like equity prices” </li><li>growth and labour market data have typically been a better guide to election results than inflation</li><li>but, if you must look at inflation, then headline inflation (ie the CPI that includes food and gasoline prices) has a stronger relationship with election results than core inflation</li></ul><p>Dunno about anyone else but I am not looking forward to this rerun.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.