Macroeconomic Indicators

Macroeconomic Indicators

Macroeconomic indicators
GDP (Gross Domestic Product) — GDP (everything produced in the country over a year)
GDP growth rate — GDP growth rate (if 3% = the economy is growing by 3%)
Inflation (CPI, PPI, PCE) — inflation (CPI = consumer, PPI = producer, PCE = expenditures)
Unemployment rate — percentage of unemployed (high = bad for the economy)
Interest rates (policy rate, SOFR, LIBOR replacement) — rates (policy = central bank, SOFR = market rate replacing LIBOR)
Yield curve — yield schedule by term (normally: long-term is pricier than short-term)
Inverted yield curve — inverted curve (long-term is cheaper than short-term — crisis signal)
Money supply (M1, M2, M3) — quantity of money in circulation (M1 = cash, M2 = plus deposits, M3 = plus savings)
Trade balance — exports minus imports (if positive, you sell more than you buy)
Current account — trade balance plus income and transfers (broader than trade)
Fiscal deficit — government budget deficit (expenses minus revenues)
Government debt-to-GDP — government debt as a percentage of GDP (higher = more financed)
PMI (Purchasing Managers’ Index) — managers’ index (>50 = expansion)
Consumer confidence — consumer confidence (whether to buy)
Industrial production — production (industrial activity)