National Output
Economic data to measure values of goods and services produced in a country
GDP is the broadest measure of economic growth and economic health of a nation
ISM Manufacturing is a leading indicator for economic health of US economy
Gross Domestic Products (GDP)
Measures how fast/slow ecnomy is growing. It measures the number of goods and services produced in US.
3 reports: Advance, Preliminary and Final GDP
Ideal real annual growth rate is 3-3.5%
GDP UP => Inflation UP => Interest rates UP => USD UP
GDP DOWN => Inflation DOWN => Interest rates DOWN => USD DOWN
GDP PRICE INDEX
Measures level of inflation. Only taking into accounts goods and services produced by US, i.e. exports only.
Inflation UP => Interests rates UP => USD UP
Inflation DOWN => Interests rates DOWN => USD DOWN
DURABLE GOODS ORDER
Measures number of orders of goods with life expectancy of more than 3 years, i.e. luxury goods. It is a key indicator for future economic activity.
Whenever consumers grow uneasy about economy, they would cut spending on durable goods.
Durable UP => economy UP => USD UP
Durable DOWN => economy DOWN => USD DOWN
INDUSTRIAL PRODUCTION
Records industry’s output and spare capacity.
Production UP => Growth UP => USD UP
Production DOWN => Growth DOWN => USD DOWN
ISM MANUFACTURING
First monthly report on the economy with focus on manufacturing sector.
ISM > 50 => expansion
ISM < 50 => contraction
ISM = 50 => no growth
ISM UP => Economy UP => USD UP
ISM DOWN => Economy DOWN => USD DOWN
ISM NON-MANUFACTURING
Monthly report focussing on service sector.
ISM UP => Economy UP => USD UP
ISM DOWN => Economy DOWN => USD DOWN
CHICAGO PMI
PMI stands for Purchasing Managers Index. Measures economic activity in midwest region, which is the industrial heartland of US.
PMI UP => USD UP
PMI DOWN => USD DOWN
