The trend indicates the general tendency or direction over the long-term. Quarter on quarter growth rates compared with month on month growth rates provide a trend indicator for monthly data. Many economic figures are quite volatile from month to month, so the trend can be useful, especially for figures like trade and retail sales. Inflation has fallen to the government's target figure. The year on year rate has fallen, but compared to a year ago, prices are still rising.
Financial markets are usually concerned whether economic indicators are below or above expectations.
For major economic indicators a 'market consensus' is published weekly. Many economic indicators are in the form of index numbers, with a specified base year normally being 100. The figures act as a summary of the direction and changes in the underlying economic variable, such as inflation. The weight of each component in the overall index is fixed over time. Alternatively, the weights of the components are allowed to fluctuate over time to reflect changes in their relative importance.