Financial Indicators

Following is a list of the most important and common Financial Indicators.
In general, not only the numerical value of an indicator is important, but also the anticipation and forecast, and the impact of the relation between anticipated and actual figures on the market.

CCI – Consumer Confidence Index
CPI – Consumer Price Index; Core-CPI
Employment Report
Employment Situation Report
FOMC Meeting (Federal Open Market Committee): Rate announcement
GDP – Gross Domestic Product
ISM (Institute for Supply Management) Manufacturing Index
MCSI – Michigan Consumer Confidence Index
NFP – Changes in non-farm payrolls
PMI – Purchasing Managers Index
Retail Sales Data; Retail Sales less Automotives
Tankan Survey
TIC (Treasury International Capital) Data on transactions in long term securities

CCI – Consumer Confidence Index
Issued by The Conference Board last Tuesday of each monh at 10:00am EST.
Covers current month’s data.
The CCI is a survey based on a sample of 5,000 U.S. households and is considered one of the most accurate indicators of confidence. The respondents answer questions about their income, the market condition as they see it, and the prospects of improvement of their financial situation. Consumers’ confidence and spending power increase when the economy warrants more jobs, increased wages and lower interest rates. Confidence is looked at closely by the Federal Reserve when determining interest rates. It is considered to be a big market mover as private consumption makes two thirds of the American economy.

CPI – Consumer Price Index; Core-CPI
Issued by Bureau of Labor and Statistics around the 20th of each month at 8:30am EST.
Covers previous month’s data.
The CPI is considered the most widely used measure of inflation and is regarded as an indicator of the effectiveness of government policy. It is one of the most followed economic indicators and a very big market mover. The CPI is a basket of consumer goods and services tracked from month to month (excluding taxes). A rising CPI indicates inflation. The Core-CPI, which excludes food and energy as well as expense items which are subject to seasonal fluctuations, gives a more stringent measure of general prices.

Employment Report
Issued by Department of Labor on the first Friday of each month at 8:30am EST.
Covers previous month data .
The collection of the data is gathered through a survey among 375,000 business and 60,000 households. The report reviews: the number of new work places created or cancelled in the economy, average wages per hour and the average length of the work week. The report is considered as one of the most important economic publications as it discloses new up-to-date information and, together with NFP, gives a good picture of the total state of the economy.
The report also shows separately the picture in the different sectors (manufacture, service, building, mining, public, etc.)

Employment Situation Report
Issued by Bureau of Labor and Statistics on the first Friday of each month at 8:30am EST
Covers previous month data
The Employment Situation Report is a monthly indicator which contains two major parts:

  • The first part covers unemployment and new jobs created (unemployment rate and the change in unemployment rate).
  • The second part indicates things like average weekly hours worked and average hourly earnings, this data is important for determining the tightness of the labor market, which is a major determinant of inflation.

The Bureau of Labor surveys over 250 regions across the United States and covers almost every major industry. This report almost always moves markets. Investors value the fact that information in the Employment report is very timely, less than a week old. The report provides one of the best snapshots of the health of the economy.

FOMC Meeting (Federal Open Market Committee): Rate announcement
The meeting of the US Federal Bank representatives is held 8 times a year. The decision about the prime interest rate is published during each meeting (around 14:15 EST).
This is a very important indicator affecting the rate of inflation and a very big market mover. The FED (the Federal Reserve of USA) is responsible for managing the US monetary policy, controlling the banks, providing services to governmental organizations and citizens, and maintaining the country’s financial stability. Each of the 12 Fed regions in the USA comprises several states and is represented in the Fed committee by regional commissioners.
The rate of interest on a currency is in fact the price of the money. The higher the rate of interest on a currency, the more people will tend to hold that currency, to purchase it and, therefore, to strengthen the value of the currency.
The content of the deliberation held in the meeting and published 2 weeks afterwards is almost as important for the market players as the FOMC announcement itself.

GDP – Gross Domestic Product
Issued by BEA (Bureau of Economic Analysis) on the last day of the quarter at 8:30am EST.
Covers previous quarter data.
The US Commerce department publishes the GDP in 3 modes: advance; preliminary and final.
GDP is a gross measure of market activity representing the monetary value of all the goods and services produced by an economy over a specified period. This includes consumption, government purchases, investments, and the trade balance.
The Commerce Department releases an “advance report” on the last day of each quarter. Within a month it follows up with the “preliminary report” and then the “final report” is released another month later. The most recent GDP figures have a relatively high importance to the markets. GDP indicates the pace at which a country’s economy is growing or shrinking.

ISM (Institute for Supply Management) Manufacturing Index
Issued by Institute for Supply Management on the first business day of the month at 10:00am EST.
Covers previous month data .
The Manufacturing ISM Report is based on data received from a monthly survey, which comprises the answers of purchasing executives in more than 400 industrial companies. It reflects a compound average of 5 main economic areas (new customers’ orders 30%; manufacturing 25%; employment 20%; supply orders 15%; inventories 10%). Any data over 50 points shows the expansion of economic activities and data under 50 points shows a contraction.

MCSI – Michigan Consumer Confidence Index
Issued by University of Michigan on the first of each month.
Covers previous month data .
The index gives a snapshot of whether or not consumers feel like spending money. It shows consumers confidence or the lack of it and is becoming more and more useful for investors.

NFP – Changes in non-farm payrolls
Issued by Department of Labor on the first Friday of each month at 8:30am EST.
Covers previous month data.
The data represents changes in the total number of paid U.S. workers of any business, excluding general government employees, private household employees, employees of nonprofit organizations that provide assistance to individuals, farm employees.
The total non-farm payroll accounts for approximately 80% of the workers who produce the entire gross domestic product of the United States and is used to assist government policy makers and economists determine the current state of the economy and predict future levels of economic activity. It is a very big market mover mainly due to the high deviations in the forecasting.

PMI – Purchasing Managers Index
Issued by Institute for Supply Management on the first business day of each month at 10:00am EST, covers previous month’s data.
The PMI report is an extremely important indicator for the financial markets as it is the best indicator of factory production. PMI index over 50 indicates that manufacturing is expanding while anything below 50 means that the industry is contracting.This indicator is widely used for detecting inflationary pressure as well as manufacturing economic activity. It is a composite index, which includes five major indicators: new orders, production, inventory levels, supplier deliveries and the employment environment. Each of them has a different weight; the data is adjusted to seasonal factors. The key area of the report is growth in new orders, which predicts manufacturing activity in future months. The PMI is not as strong as the CPI in detecting inflation, but because the data is released one day after the month it is very timely. An unexpected change in the report is usually followed by a quick reaction in market.

Retail Sales Data
Retail Sales less Automotives

Issued by Bureau of Census around the 12th of each month at 8:30am EST.
Covers previous month data.
Retail sales are a key driving force in US economy because the retail revenues are a major part – two thirds – of the US economy.This indicator measures the total consumer spending on retails sales (not including service costs). The Census Bureau surveys hundreds of various sized firms and businesses offering some type of retail trade. The data is released monthly showing the percent change from the previous month data. A negative number indicates that sales decreased from the previous month’s sales. Higher sales figures would indicate increased economic activity. This indicator is a very big market mover. The data is very timely because retail sales data is released within 2 weeks of the previous month.

Tankan Survey
Issued by BoJ (Bank of Japan) four times a year in April, July, October and mid-December at 10:50pm GMT.
An economic survey of Japanese business issued by the central Bank of Japan, which is used to formulate monetary policy. The survey covers thousands of Japanese companies with a specified minimum amount of capital, although rather influential firms may also be included. The companies are asked about current trends and conditions in their respective industries as well as their expected business activities for the next quarter and year. It is considered as a big market mover for JPY currency pairs.

TIC (Treasury International Capital) Data on transactions in long term securities
Issued by Department of the Treasury around 12th working day of each month at 9:00am EST.
Covers month before previous data.
This indicator is It is considered as a big market mover. The TIC data provides information about the most important way the US is financing its ongoing current account deficit: selling long-term securities to foreigners or exporting debt. It is important to remember that there are other ways of financing a deficit: borrowing from foreign banks or attracting net FDI (Foreign Direct Investment) inflows. But FDI flows have been negative and bank flows tend to be small, therefore, most of the financing the US needs has come from the sale of long-term securities to foreigners. TIC data are a good measurement of how much a country is trusted in the international investment community.

Choose an asset and get a free prediction
Fields marked with an * are required

Trading binary options involve a high level of risk. Full Risk Disclaimer

  • WordPress Image Lightbox Plugin