Economic indicators are snippets of financial and economic data reports released by governments or private organizations related to a country’s economic performance. These reports help measure the country’s economic health. They are followed extremely closely by nearly everyone in the financial world. These releases are scheduled at set times, giving the markets an indication of the nation’s economy.
MAJOR ECONOMIC INDICATORS GROSS DOMESTIC PRODUCT (GDP)
The market value of all officially recognized final goods and services produced.
A chain-weighted measure of output of the industrial sector of the economy. The industrial sector includes manufacturing, mining, and utilities and accounts for one-quarter of the major currencies’ economies. That’s why it’s critical to watch the health of factories and whether their capacity is being maximized.
PURCHASING MANAGERS INDEX (PMI)
The index includes data on new orders, production, supplier delivery times, backlogs, inventories, prices, employment, export and import orders.
PRODUCER PRICE INDEX (PPI)
Measures average changes in selling prices received by domestic producers in the manufacturing, mining, agriculture, and electric utility industries.
Durable Goods Orders measures new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods.
Housing starts is the number of privately owned new housing units on which construction has been started, divided into three types: single-family houses, townhouses or small condos, and apartment buildings with five or more units.