Main Economic Indicators of the World (Part 2)
National Association of Purchasing Managers (NAPM CHICAGO) Definition: The Chicago PMI (officially known as the Business Barometer) is a monthly composite index based on opinion surveys of more than 200 Chicago purchasing managers regarding the manufacturing industry. The survey responses are limited to three options: slower, faster and same. As such, the index will not capture if a component is growing but at a much slower rate or vice versa. The index is a composite of seven similarly constructed indexes including: new orders, production, supplier delivery times, backlogs, inventories, prices paid, and employment. New orders and orders backlog indices indicate future production activity. It signals factory-sector expansion when it is above 50 and contraction when below it. The index is seasonally adjusted for the effects of variations within the year, differences due to holidays and institutional changes. Because it is an opinion survey, it is often influenced by respondents’ perception of current events, as opposed to actual hard data. Also, it does not capture technological and production changes, which make it possible for production to expand, while employment contracts. Because the Chicago PMI is released the day before the ISM, it is watched in order to predict the more important ISM report, which is in itself a good leading indicator of overall economic activity. It frequently moves markets New Home Sales Definition: The New Home Sales report shows the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates housing market trends, and economic momentum signaling consumer purchases of furniture and appliances. Simply, the volume of sales indicates housing demand. Also, the monthly supply of homes serves as an input into the level of housing pressure. However, when analyzing sales trends, one must remember to take into account unusual weather and seasonal effects NY Empire State Index Definition: The New York Fed conducts this monthly survey of manufacturers in New York State. Participants from across the state represent a variety of industries. On the first of each month, the same pool of roughly 175 manufacturing executives (usually the CEO or the president) is sent a questionnaire to report the change in an assortment of indicators from the previous month. Respondents also give their views about the likely direction of these same indicators six months ahead. This index is seasonally adjusted using the Philadelphia Fed's seasonal factors because its own history is not long enough with data only going back a couple of years. Personal Income Definition: Personal income is simply the income received by individuals, nonprofit institutions, and private trust funds. This indicator is vital for the sales sector. Without an adequate personal income and a propensity to purchase, consumer purchases of durable and nondurable goods are limited. Philadelphia Fed Survey Definition: A composite diffusion index of manufacturing conditions within the Philadelphia Federal Reserve district. This survey is widely followed as an indicator of manufacturing sector trends since it is correlated with the NAPM survey and the index of industrial production. Producer Price Index Definition: The PPI gauges the average changes in prices received by domestic producers for their output at all stages of processing. The PPI data is compiled from most sectors of the economy, such as manufacturing, mining and agriculture. Productivity Definition: The economic measure of efficiency summarizing the value of outputs relative to the value of inputs. Purchasing Managers’ Index (PMI) Definition: The Index is widely used by industrialized economies to assess business confidence. Germany, Japan and the UK use PMI surveys for both manufacturing and services industries. The numbers are arrived at through a series of questions regarding Business activity, New Business, Employment, Input Prices, Prices Charged and Business Expectations. In addition to the headline figures, the prices paid components is highly scrutinized by the markets for evaluating pricing power and inflationary risks. Retail Sales Definition The retail sales report is a measure of the total receipts of retail stores from samples representing all sizes and kinds of business in retail trade throughout the nation. It is the most timely indicator of broad consumer spending patterns and is adjusted for normal seasonal variation, holidays, and trading-day differences. Retail sales include durable and nondurable merchandise sold, and services and excise taxes incidental to the sale of merchandise. Excluded are sales taxes collected directly from the customer. It also excludes spending for services, a large component of consumer expenditures. Retail sales is a the first picture of consumer spending for a given month. Retail sales are often viewed ex-autos, as auto sales can move sharply from month-to-month. Also, gas and food component changes are often a result of price changes rather than shifting consumer demand. Retail sales can be quite volatile and the advance reports are subject to large revisions. Tankan Survey Definition: An economic survey of Japanese business issued by the central Bank of Japan, the survey is conducted to provide an accurate picture of business trends of enterprises in Japan, thereby contributing to the appropriate implementation of monetary policy . The report is released four times a year in April, July, October and mid-December. Tertiary Industry Index (Japan) Definition: The tertiary index measures activity in six industries: utilities, transport and telecommunications, wholesale and retail, finance and insurance, real estate and services. Treasury International Capital (TIC) Definition: These Treasury data track the flows of financial instruments into and out of the United States. Instruments tracked include Treasury securities, agency securities, corporate bonds, and corporate equities. Unemployment Rate Definition: The percentage of the people classified as unemployed as compared to the total labor force. Wholesale Trade Definition: Wholesale Trade is the dollar value of sales made and of inventories held by merchant wholesalers. It is one of the components of business inventories. Statistics include sales, inventories, and stock/sale ratios, collected via mail-out/mailback survey of about 7,100 selected wholesale firms. ZEW Definition: The ZEW works in the field of user-related empirical economic research. In this context it particularly distinguished itself nationally and internationally by analysing internationally comparative issues in the European context and by compiling scientifically important data bases. The ZEW's duty is to carry out economic research, economic counseling and knowledge transfer. The institute focuses on decision-makers in politics, economics, and administration, scientists in the national and international arena as well as the interested public. Regular interviews on the situation on the financial markets and business-related service providers as well as large-scale annual studies on technological competitiveness of and innovation activities in the economy are representative of the different types of topical information provided by the ZEW. The ZEW is subdivided into the following five research fields: International Finance and Financial Management;
Labour Economics, Human Resources, and Social Policy;
Industrial Economics and International Management;
Corporate Taxation and Public Business Finance;
Environmental and Resource Economics, Eco-management. Anastasios Katsoulakos born on October 31th, 1976 in Athens, Greece and graduated Master of Business Administration from Economic University of Athens, in 2000. During his studies he started my working career with J.S.I (forex company based in Athens) as a broker. He has been involved in forex trading since 2000. In 2003 he started AKFOREX (http://www.akforex.com), which publishes forex strategy newsletters and handles forex managed accounts. Anastasios uses both technical and fundamental analysis in his trading, and believes that successful trading is based on psychology and having a disciplined money management. |
Other Forex Trading Articles
Currency Trading – 5 Steps To Trading Success Currency trading is all about trading the right way to achieve currency trading success. It’s a blend of various inputs that will make you successful. Get just one of them wrong and you will lose.This article is for both novice traders who have never traded before and seasoned traders who want to achieve greater profits.Here are th ...Advantages Of Forex Trading Forex trading on the Global Foreign Exchange market can be quite lucrative. Instead of restricting your trading to smaller markets within your own country, FX trading allows you to trade on a global scale.In recent years, forex trading has grown increasingly popular, as it has many advantages that make it a wise choice for investors and t ...Currency Exchange: How To Use It and What It Can Do For You I can tell you this, this is definitely not a business that will make you rich overnight, so if your sitting there in your lazy chair hoping that you can just throw in $25 and expect to be a millionaire in a week this is definitely not for you!. I CAN tell you this though given a little patients and time you can profit substantially over the l ...7 Reasons Why Training Doesn't Produce the Desired Results and What You Can Do To Seven Reasons Why Training Doesn’t Produce the Desired Results and What You Can Do To Improve Your ResultsOverviewAbraham Maslow said, “If the only tool you have is a hammer, every problem looks like a nail.” As managers, leaders and change agents, we want to improve our organizational performance. Often training is ...Investing In Other Currencies To someone who hasn't ever followed currency prices or paid attention on CNN may be surprised that the value of the US dollar (or any currency for that matter) is always changing. That means that on a daily basis, everyone in possession of that currency is getting rich or poorer automatically.If the US dollar goes though a downward trend, ...Trading System - Is It Really Worth Your Money? If you want to get into trading, a trading system can help. It is often hard to know if failure or lack of success in trading is the result of poor marketing or lack of knowledge about trading systems; either way, if things start to falter you may end up thinking that the system you are considering looks like a get rich quick scheme.It pr ...Get The Help You Need To Become A Profitable Forex Trader If you are an aspiring Forex trader then you should be aware that there is a lot to learn about this huge market. Fortunately, there are many places where you can find out the information you need to help you become a successful foreign currency investor. Check online or in local bookstores and you will see there is a wealth of information on th ...Forex Trading Software Dynamic is the most suitable word to describe the forex market. Software that deals with forex trading should also stand up to the level of quality it demands.In the market there are two types of Forex trading software available: ‘Web-based software’ and ‘desktop software’. Choosing one of them depends primarily on security and also on yo ...Online Commodity Trading Traditionally, commodities were things of value that were produced in huge quantities by a lot of different producers for commercial sale. Despite being produced by different producers, the value of the commodity was equivalent.Trade in commodities, ranging from agricultural produce like corn to natural resources like oil, is done in the ...Trendline Backside Forex Strategy: Getting In At The Optimum Price Knowing how to utilize the power of trendlines as part of your forex strategy can make a big difference to your profits. Getting in at the right level results in more pips which can accumulate steadily.Two methods of drawing trendlines are:1. The common sense method. By just running the eye over a candle chart, it is easy to identi ...Currency Trading Success using Technical Analysis Anyone can achieve currency-trading success – you can learn everything about trading currencies by simply investing the time necessary.Fundamental AnalysisA currency trader who makes trades based upon fundamental analysis, will look at the supply and demand situation relevant to the particular currency studied, and try and predict ...Trading The Market: Keep It Simple Stupid! It seems like each day there is another complicated trading system in development. I am quite surprised to see the trading population dig into more complex methods combining various indicators to profit from the financial markets. How many confirmations does one need? By the time all your indicators confirm a buy or sell signal, your entry point ...Choosing A Forex Trading System - Part 1 There are many different kind kinds of Forex trading systems.Of course, the most important Forex trading system is the one that is right for you.As you search the web for Forex trading systems suitable to you there will be many seemingly appealing offers many promising to be so much better than the rest.It can be difficult t ...FOREX: Exiting Positions at a Right Time The presented article covers one of the most important (in author’s opinion) aspects of trading in general and FOREX trading in particular – managing of orders and positions. This includes choosing entry points, making decisions about exit points, stop-loss and take-profit of the trader. I hope this article will help new traders, who just began ...Investing In Foreign Currencies - The FOREX Building a diversified portfolio gives you a lot more stability with your investments and enables you to keep on the profit side of things more easily. But if you already have a rather diversified portfolio and think you are now rather knowledgeable of the stock market, then you may be ready to expand your investments into FOREX - the foreign ex ...Forex Trading Education Foreign Exchange (FOREX) Trading is the concurrent buying and trading of different currencies. The industry is very fast paced with sudden changes happening everyday. There are a lot of factors that affect the market value of each currency, a lot of analysis and computation involved to try to make accurate predictions of the next direction the m ...Will I Get Rich Trading?...Probably Not Don't throw that coffee cup at your screen, I'm only being honest. Do some people get rich trading?...Absolutely. The internet is filled with talented pitch men that can hype anything from watching the stars to the latest and greatest make you rich on auto-pilot software program for your trading signals. (but the stars thing does work great wi ...Forex Trading Explained Forex trading is becoming a favorite of currency traders. Forex trading can be confusing for someone new to currency trading. The market also draws many people in because it has so many advantages over other types of trades. Forex trading is very different from stock exchange markets also, which can mean great riches for those who take part i ...Trying Forex Trading with the Best Strategy and Approach With the day things are today, more people are getting interested in investing their money to make them grow faster. The problem is, not too many people are willing to take the risk of investing it because of the risks, so some of them just let their money rut in banks. Not that there’s anything wrong with banks, it’s just that they have low rat ...Are These Simple Trading Mistakes Costing You Money In The Forex Market The 2% rule is a powerful tool in Forex trading. By adopting this rule you’re using a strategy that decreases the size of your losses during losing streaks, an important consideration. There is, however one small caveat that you need to be aware of when using the 2% rule to calculate how many Forex shares you are going to buy. As you know, the n ...Currency Trading – Big Profit Opportunities For The Week Ahead Please find below currency trading opportunities for next week based upon the same style of analysis we recently published to catch the big moves in energies.There look to be some great opportunities in the currencies this week, so let’s look at some of the major currencies and the best ones to focus on for Monday.Dollar getting sh ...Teeth Whitening - Professional vs. Do It Yourself It is a very common misconception that we must go to a dentist to achieve the "right" kind of teeth whitening. We have many methods available to us today that really are just as good, if not better than, the professional teeth whitening we are made to think is superior. But which should you choose?There has been a great deal of change a ...
|
