Gauge for the overall performance of the country's service sector. The Services PMI interviews executives on the status of sales, employment, and their outlook. Because the performance of the country's service sector is extremely consistent over time, services does not impact final GDP figures as much as the more volatile figure on the manufacturing sector. For this reason Services PMI usually causes little market movement. The survey results are quantified and presented as an index on a 1-100 scale. The headline figure is the percentage change in the index.

Retail Sales Less Autos

The Retail Sales figure is also reported excluding automobile sales. Given their high cost, auto sales contribute significantly to retails sales, comprising nearly a quarter of the figure. As a result, changes in automobile sales can produce high fluctuations in the retails sales report. Vehicle sales are prone to seasonal changes, thereby easily distorting retail sales trends. To provide a more accurate picture of retail sales the auto component is removed and followed more closely.

The Domestic Corporate Goods Price Index measures prices for goods purchased by Japanese corporations. As prices for input materials and the overall cost of manufacturing change, companies adjust retail prices accordingly. The CGPI comprehensively tracks these supply-side price pressures and increases in the index often precede upward movement in the CPI. If an increase in the CGPI is followed by a rise in the CPI, concerns about inflation may prompt the Bank of Japan to raise interest rates. The headline numbers are the percentage change in the index month or month and annually.

Measures changes in the prices paid by retailers for finished goods. Growth in wholesale prices usually precedes increases in retail prices, thus changes in Wholesale Prices can be used as an early indicator for inflation. While the CPI records price changes for retail goods, the WPI might pick up inflationary pressures before they reach the headline retail CPI report. The headline number is the percentage change in the index.

Note: WPI provides seasonally adjusted price changes to account for goods' seasonally volatility.

Tracks trends in machine tool orders placed by major manufacturers in Japan . Machine Tool Orders is considered a leading indicator of business capital spending, and increases are indicative of stronger business confidence and a better future outlook. Higher capital spending is also positive for the Japanese employment situation, as companies will generally require new employees to run and maintain new machinery.

The Machine Tool Orders figure tracks closely with the Machine Orders figure put out by the Economic and Social Research Institute, but tend to affect the market more since it is released nearly a month earlier.

The headline figure is the percentage change from the previous month or year.

Measures changes in the selling prices producers charge for goods and services, and well as tracks how prices feed through the production process. Because producers tend to pass on higher costs to consumers as higher retail prices, the PPI is valuable as an early indicator of inflation. Simply put, inflation reflects a decline in the purchasing power of the Dollar, where each dollar buys fewer goods and services. The report also gives insight into how higher prices from raw materials flow toward the final product.

A rise in PPI signals an increase in inflationary pressures. Given the economic instability associated with rising price levels, the Fed often will raise interest rates to check inflation. A low or falling PPI is indicative of declining prices, and may suggest an economic slowdown.

The headline figure is expressed in percentage change of producer price.

Notes: The PPI records prices at various stages of production: raw goods, intermediate goods and finished goods. Though intermediate and crude goods prices do provide insight for future inflationary pressure, it is the price of finished goods that generates most interest for market participants. The finished goods data is able to gauge price pressure before the goods reach the retail market.

Measures the volume change of output of the manufacturing and energy sector. The industrial sector contributes to only a quarter of the Euro-zone GDP. However, most variations in GDP come from the industrial sector, whereas other sectors that contribute far more to national output historically have been very consistent regardless of economic cycles. That is why tracking industrial production is very important for forecasting GDP changes.

Note: The Industrial Production figure can be adjusted for the number of working days in the given time period and/or seasonally to account for weather related changes in production.

Tracks automobile sales in Australia . Though motor vehicle sales are a small component of the overall economy, expenditures of such "big-ticket" items give good insight into consumer's spending ability. Additionally, the figure gauges consumer confidence; consumers and businesses are only likely to make the outlays needed for motor vehicles if they are optimistic about their current and future economic well being.

The figure is reported both as number of new automobile sales and as monthly percentage change.

Consumer Confidence is a measure of popular sentiment concerning the Japanese economy. The figure is derived from a survey that asks thousands of Japanese consumers about personal expenditure patterns and inflationary expectations. In general, rising consumer confidence precedes increased consumer spending, which drives both economic growth and inflation. Even though the Japanese economy is heavily driven by its export sector, domestic consumer confidence is an important gauge of overall economic activity and future inflationary pressures.

A headline figure above 50 shows positive consumer sentiment, while a number below 50 shows negative consumer sentiment; the greater the distance, the stronger the sentiment.

Assesses changes in the cost of living by measuring changes in the prices of consumer items. The CPI is the headline inflation figure that indicates the strength of domestic inflationary pressures. Simply put, inflation reflects a decline in the purchasing power of the Euro in France , where each Euro buys fewer goods and services. CPI is the most popular way to measure changes in purchasing power. The report tracks changes in the price of a basket of goods and services that a typical French household might purchase. An increase in the index indicates that it takes more Euros to purchase the same set of basic consumer items.

The Gross Domestic Product is a comprehensive measure of France's overall production and consumption of goods and services. GDP serves as one of the primary measures of overall economic well-being. While GDP announcements generally conform to expectations, unanticipated changes in this metric can move markets.

Robust GDP growth signals a heightened level of economic activity and often a higher demand for the domestic currency. At the same time, economic expansion raises concerns about inflationary pressures which may lead monetary authorities to increase interest rates. Thus better than expected GDP figures are generally bullish for the Euro, while negative readings are generally bearish.

Technically, Gross Domestic Product is calculated in the following way:

GDP = C + I + G + (EX - IM)

where

C = private consumption, I = private investment, G = government expenditure, EX = exports of goods and services, IM = imports of goods and services.

French GDP figures, officially called Quarterly National Accounts, are released quarterly. The headline figures are annualized percentage changes in real and nominal GDP.

Gross Domestic Product (GDP) measures the value of goods and services produced with in a country. GDP is the most comprehensive overall measure of economic output and provides key insight as to the driving forces of the economy.

Due to the untimeliness of this report and because data on GDP components are available beforehand, the actual GDP figure is usually well anticipated. But given its overall significance GDP has the tendency to move the market upon release, acting to confirm or upset economic expectations. Robust GDP growth signals a heightened level of activity that is generally associated with a healthy economy. However economic expansion also raises concerns about inflationary pressures which may lead to monetary policy tightening.

Technically, Gross Domestic Product is calculated in the following way:

GDP = C + I + G + (EX - IM)
where
C = private consumption
I = private investment
G = government expenditure
EX = exports of goods and services
IM = imports of goods and services

The figure is commonly reported in headlines as an annualized percentage, based on quarterly data.

On a technical note: The GDP can be reported in either real or nominal terms, real GDP being adjusted for inflation.

Gross Domestic Product (GDP) measures the value of goods and services produced with in a country. GDP is the most comprehensive overall measure of economic output and provides key insight as to the driving forces of the economy.

Due to the untimeliness of this report and because data on GDP components are available beforehand, the actual GDP figure is usually well anticipated. But given its overall significance GDP has the tendency to move the market upon release, acting to confirm or upset economic expectations. Robust GDP growth signals a heightened level of activity that is generally associated with a healthy economy. However economic expansion also raises concerns about inflationary pressures which may lead to monetary policy tightening.

Technically, Gross Domestic Product is calculated in the following way:

GDP = C + I + G + (EX - IM)
where
C = private consumption
I = private investment
G = government expenditure
EX = exports of goods and services
IM = imports of goods and services

The figure is commonly reported in headlines as an annualized percentage, based on quarterly data.

On a technical note: The GDP can be reported in either real or nominal terms, real GDP being adjusted for inflation.

The difference between imports and exports of goods. Visible Trade differentiates itself from Trade Balance because it does not record intangibles like services, only reporting on physical goods. Because Britain's economy is highly trade-driven, Visible Trade data can give critical insight into developments in the economy and into foreign exchange rates.

Negative Visible Trade (deficit) indicates that imports of goods are greater than exports. When exports are greater than imports, the UK experiences a trade surplus. Trade surpluses indicate that funds are coming into the UK in exchange for exported goods. Because such exported goods are usually purchased with Pounds, trade surpluses usually reflect currency flowing into Britain, such currency inflows may lead to a natural appreciation of Pound Sterling, unless countered by similar capital outflows. At a bare minimum, surpluses will buoy the value of the currency.

There are a number of factors that work to diminish the market impact of UK Visible Trade on markets. The report is not very timely, released monthly about forty days after the reporting period. Developments in many of the components that comprise the figure are also usually well anticipated. Lastly, since the report reflect data for a specific reporting month, any significant changes in Visible Trade should plausibly have been already felt during that quarter and not during the release of data. But because of the overall significance of Trade on Foreign Exchange Rates, the figure has a history of being one of the more important reports out of the UK.

The headline figure is expressed as the value of the merchandise trade surplus or deficit in billions of Pounds.

A gauge of Britain's trade with countries outside of Europe. The headline figure, expressed in billions of Pounds, is the value of exports to Non-EU countries minus the value of imports from those countries. A positive value represents a trade surplus while a negative value amounts to a trade deficit. The value of Great Britain's non-EU trade is about 30% less than that of its intra-EU trade, and the distinction between EU and non-EU figures can help investors anticipate which currency pairs will be most affected by changes in the UK trade balance.

Leading Indicators is a composite index designed to forecast trends in the overall economy.

Unlike the Economic Sentiment Indicator which looks into the future direction of the economy, the Current Situation Indicator focuses on the results of the survey that relate to the current health of the German economy. Expert opinions on whether the current situation is improved, worsened, or unchanged are summarized as the number of positive responses minus the number of negative responses. A higher headline figure indicates a stronger economy and better business climate.

The Center for European Economic Research (ZEW), queries financial experts throughout Europe every month in order to make a medium-term forecast about the economic situation. Eurozone ZEW Indicator of Economic Sentiment Assesses future economic expectations for the whole Eurozone. The results are summarized as the number of positive responses minus the number of negative responses. A higher headline figure indicates a positive expectation for Euro-zone economy.

Technical Note on Headline Number : The results of the survey are always presented as the difference between those experts that optimistic and those are pessimistic. For instance if 25 percent of analysts expect improvement, 35 percent expect decline, and 40 percent expect no change, the headline figure is -10.

A German Firm, the Center for European Economic Research (ZEW), queries financial experts throughout Europe every month in order to make a medium-term forecast about Germany 's economic situation. They ask experts to evaluate the current situation and to predict the future direction of the economy. For all components of the survey, responses are restricted to positive, negative, or unchanged. This simple structure allows the survey to be quick and efficient in terms of turnaround time, as well as easy to understand and interpret.

Experts are asked for a qualitative assessment of the direction of inflation, interest rates, exchange rates and the stock market in the next six months. Thus the indicator provides a medium-term forecast for the German economy.

Technical Note on Headline Number : The results of the survey are always presented as the difference between those experts that optimistic and those are pessimistic. For instance if 25 percent of analysts expect improvement, 35 percent expect decline, and 40 percent expect no change, the headline figure is -10.

Survey assessing business conditions and expectations of manufacturing executives in New York . Though the survey is relatively new and New York has a considerably small number of manufacturers, the report has shown a promising correlation to the Philadelphia Fed Index and the market moving ISM Manufacturing Survey. Thus Empire serves as a useful earlier indicator of overall manufacturing in the US .

Results are calculated as the difference between percentage of positive and negative scores; zero acts as the breakeven point. A high figure is bullish for the dollar, indicating positive business sentiment conducive to growth in production. A low or negative number signals poor business conditions.
 

Measures Capital Flow into U.S. Denominated Assets. Summarizes the flow of stocks, bonds and money market funds to and from the United States. The headline figure is the difference in value between American purchases of foreign securities and foreign purchases of American securities, expressed in millions of dollars. The Treasury International Capital or TIC statement is a major component of the American capital account and gives valuable insight into foreign demand for American investments and dollar.

A positive figure indicates that more capital is entering the US than leaving as sales of American securities to foreigners exceed American purchases of foreign securities. Such positive figures suggest that American security markets are competitive with those of other countries. Foreign security purchases are especially important in the case of a trade deficit, as a positive figure can offset the depreciating effect of a trade shortfall. On the contrary, a negative or declining TICS figure reflects a declining capital flow picture. Outflows are indicative of weaker demand for US assets which puts downward pressure on the value of the dollar.

A key feature of the TIC data is its measurement of the types of investors the dollar has; governments and private investors. Usually, a strong government holding of dollar denominated assets signals growing dollar optimism as it shows that governments are confident in the stability of the US dollar. Most importantly seems to be the purchases of Asian central banks such as that of Japan and China. Waning demand by these two behemoth US Treasury holders could be bearish for the US dollar. As for absolute amount of foreign purchases, the market generally likes to see purchases be much stronger than the funding needs of that same month's trade deficit. If it is not, it signals that there is not enough dollars coming in to match dollar going out of the country.

The sum of gross purchases by foreigners from US residents minus gross sales by foreigners to US residents. The components used to calculate long term flows are US Treasury bonds and notes, US government agency bonds, US corporate bonds, US corporate stocks, foreign bonds and foreign stocks. (TIC signifies: Treasury International Capital Flows)

Unsold goods held by manufacturers, wholesalers and retailers. Business Inventories are often able to show economic turning points. A significant decrease in inventories implies that the economy is on the verge of rapid growth because stockrooms for businesses are empty and need to be replenished, which triggers higher production overall.

Inventories are also useful when examined in conjunction with total business sales. Rising inventories paired with slackening business sales are indicative of troubled economic times. When business sales slow down, retailers' inventories increase and they are forced cut back on wholesale orders. Wholesalers, affected by the fear of swelling inventories, will slow or even shut down production in factories.

Recent technological advancements allow firms to manage inventories more efficiently, keeping inventory levels lower. Accordingly, declines in inventory stores are often indicative of productivity increases rather than changes in demand. But these logistical advances put particular emphasis on growing inventories. Increases in stocks of goods signal declining demand in America .

While the Business Inventories figure is released with the Advanced Retail Sales report, the Advanced Retail Sales report features a lag time of merely two weeks. The Business Inventories' lag time is three times as long, making it an indicator that follows rather than leads the overall pace of the economy. Market participants tend to focus more on the Advanced Retail Sales figures.

The headline number is expressed as a percentage change from the previous month.

A timely gauge of home sales and expectations for future home building. Based on a small sample of homebuilders, the Housing Market Index is a timely indicator of future US home sales. However, as the index is not as comprehensive as formal housing reports like new home sales or MBA mortgage applications, the index acts more like a supplemental indicator for predicting housing trends.

As such, the NAHB Housing Market Index is still able to provide general insight to where the housing market is heading. Given that new home sales reflect 'big ticket' items that require construction and investment, the housing market is often viewed as an indicator of the direction of the economy as a whole. Growth in the housing market will spur subsequent spending, generating demand for goods and services and the employees who provide them.

The report headline is expressed in percentage change from the previous month. The NAHB Housing Market Index divides the Single-Family Sales data into three categories: Present, Next 6 Months and Prospective Buyers Traffic.

The total value of machinery orders placed at major manufacturers in Japan . Machine Orders is considered the best leading indicator of business capital spending, and increases are indicative of stronger business confidence and a better forward outlook. Higher capital spending is also positive for the Japanese employment situation, as companies will generally require new employees to run new machinery. The headline figure is the seasonally-adjusted month-on-month and annualized percentage change.

Evaluates the monthly change in output produced by Japan's service sector. Because this report excludes manufacturing and only measures service industries catering mainly to domestic needs, the Tertiary Industry Index is a key indicator of domestic activity. The index incorporates data from firms involved in wholesale and retail trade, financial services, health care, real estate, leisure and utilities. The report excludes industrial manufacturing sectors that tend to be influenced by foreign demand. The tertiary industry index is posted monthly as a percentage change from the previous month's figure.

Officially called the Consumer Sentiment Index, this figure measures the level of consumer confidence and is an average of five indexes measuring different aspects of consumer fiscal health. This is one of the few indicators that are entirely expectation based. Households report their views on current buying conditions for household items and where they feel are the "wisest" places to invest savings. Views on future political policy (taxes, politicians, government) and economic conditions (wages, inflation, unemployment) are also surveyed.

Confidence figures are often leading indicators for the consumer spending and the economy as a whole. The headline figure is percentage change in the index value from that of the previous month.

A country's trade balance reflects the difference between exports and imports of goods and services. The trade balance is one of the biggest components of the Balance of Payment, giving valuable insight into pressures on country's currency.

Surpluses and Deficits
A positive Trade Balance (surplus) indicates that exports are greater than imports. When imports exceed exports, the country experiences a trade deficit. Because foreign goods are usually purchased using foreign currency, trade deficits usually reflect currency leaking out of the country. Such currency outflows may lead to a natural depreciation unless countered by comparable capital inflows (inflows in the form of investments, FDI - where foreigners investing in local equity, bond or real estates markets). At a bare minimum, deficits fundamentally weigh down the value of the currency.

Ramifications of Trade Balance on Markets
There are a number of factors that work to diminish the market impact of Trade Balance upon immediate release. The report is not very timely, coming some time after the reporting period. Developments in many of the figure's components are also typically anticipated well beforehand. Lastly, since the report reflects data for a specific reporting month or quarter, any significant changes in the Trade Balance should plausibly have already been felt during that period - and not during the release of data.

However, because of the overall significance of Trade Balance data in forecasting trends in the Forex Market, the release has historically been one of the most important reports out of the any country.

An indicator for earnings growth. The data excludes bonuses, which might distort overall earnings growth. A strong Average Earnings Increase figure suggests a wealthier consumer population, which leads to increased demand and consumption. Because economic growth is partly fueled by consumer spending, a high Average Earnings increase may also raise concerns about inflation. The headline figure is an annualized percent change in earnings for the reporting period.</p> <p>&nbsp;</p> <p>The report tends to be insignificant, compared to employment figures released at the same time. But sharp deviations from expected figures have been known to affect the market.

he Average Earnings Index (AEI) is a National Statistics indicator of inflationary pressures emanating from the labour market.

The percentage of persons willing to work and actively seeking employment but who are without jobs. A lower Unemployment Rate translates into more income-earning workers and greater consumption. Increased expenditure accelerates economic growth, but can also heighten inflationary pressures.

The UK claimant count provides data on those individuals who are out of work and who are claiming some sort of unemployment benefit.

The Claimant Count is the UK's most timely measure of unemployment. The report measures the number of people who claim unemployment benefits, but actively seeking work. The Claimant Count serves as a barometer for the health of the UK labor market. Higher job growth accompanies economic expansion and could spark inflationary pressures.

The headline number is a percentage change in the figure.

The ZEW-CS Indicator is calculated monthly by the Centre for European Economic Research (ZEW) in cooperation with Credit Suisse (CS). The indicator reflects the expectations of the surveyed financial market experts regarding the economic development in Switzerland on a six-month time horizon.

CPI is the key gauge for inflation in the Eurozone. Inflation, simply put, is a decline in the purchasing power of the Euro, where each Euro buys fewer goods and services due to higher consumer prices. The index tracks changes in the price of a basket of goods and services that a typical household might purchase. When the CPI is high, it indicates that significant inflationary pressures exist in Eurozone economies. This puts pressure on the European Central Bank to raise interest rates. When CPI comes out lower than expected, the ECB is expected to lower interest rates, or keep them lower, to encourage economic growth. As a rule, the Bank adjusts rates in order to keep Europe consumer price inflation in the 0 to 2 percent range.

CPI is the key gauge for inflation in the Eurozone. Inflation, simply put, is a decline in the purchasing power of the Euro, where each Euro buys fewer goods and services due to higher consumer prices. The index tracks changes in the price of a basket of goods and services that a typical household might purchase. When the CPI is high, it indicates that significant inflationary pressures exist in Eurozone economies. This puts pressure on the European Central Bank to raise interest rates. When CPI comes out lower than expected, the ECB is expected to lower interest rates, or keep them lower, to encourage economic growth. As a rule, the Bank adjusts rates in order to keep Europe consumer price inflation in the 0 to 2 percent range.

The difference between exports and imports of Eurozone goods and services. The Trade Balance is one of the biggest components of Europe 's Balance of Payment, and thus gives valuable insight into pressures on the value of the Euro.

A negative Trade Balance figure (deficit) indicates that imports are greater than imports. When exports are greater than imports, the Eurozone experiences a trade surplus. Trade surpluses indicate that funds are coming into Europe in exchange for exported goods and services. Because such exported goods are usually purchased with Euros, trade surpluses typically indicates that currency is flowing into the Eurozone. Such currency inflows may lead to a natural appreciation of the Euro, unless countered by similar capital outflows. At a bare minimum, surpluses will buoy the value of the currency.

There are a number of factors that work to diminish the market impact of Eurozone Balance of Trade. The report is not very timely, released fifty days after the reporting period. In addition, developments in many of the Trade Balance's components are typically well anticipated. Lastly, since the report reflects data for a specific reporting month, any significant changes in the Trade Balance should plausibly have been already felt during that month and not during the release of data. Despite these considerations, and because of the overall significance of Trade Balance data, the release has historically been one of the more important reports out of Europe .

The headline figure for trade balance is expressed in millions of Euros, and usually accompanied by the year-on-year percentage change.

The Inflation Report is published on a quarterly basis to (1) present the latest economic and inflation forecasts to the MPC in a clear and forward looking manner and; (2) communicate to the general public views of the MPC to in reaching their various policy decisions.

Changes in the total volume of manufacturing sales.

Measures changes in the volume of output produced by the manufacturing, mining, and utility sectors in the USA. Because industrial production is a measure of output volume rather than dollar value, the figure is not distorted by inflation and is considered a more "pure" indicator for US industry. Though industrial production only accounts for a relatively small portion of the GDP, it accounts for most of the volatility in GDP and is considered highly sensitive to changes in interest rate and consumer demand. Therefore understanding trends in this figure are important to forecasting the GDP. High or rising Industrial Production figures suggest increased production and economic expansion. However, uncontrolled levels of production and consumption can spark inflation.

The figure varies significantly month to month due to the fact that seasonal and weather related factors often alter factory production and utility demand. Because of this volatility, the report has limited market impact.

The figure is calculated as a weighted aggregate of goods and reported in headlines as a percent change from previous months.

Capacity Utilization measures the extent to which US manufacturing companies make use of their installed productive capacity (factories and machinery). Capacity Utilization reflects overall growth and demand in the economy, rising when the economy is vibrant, and falling when demand softens. High capacity utilization also exerts inflationary pressures as scarce resources are in higher demand. However, it may also lead to new capital investments, such as new plants, that promote growth in the future.

Gauges demand for mortgage application in the US . Tracking new home mortgages and refinances, MBA Mortgage Applications Survey serves at a current indicator for the US housing market. Growth in mortgages suggests a healthy housing market. Due to the multiplier effect housing has on the rest of the economy, rising activity suggests increased household income and economic expansion. The headline figure is the weekly percentage change in the MBA Mortgage Applications figure.

Among the various indices measured in the survey, the purchase index and refinancing index most accurately reflect where the housing market is headed. The purchasing index measures the change in existing home sales in all mortgage applications, while the refinance index measures the mortgage refinancing activity in all mortgage applications.

Note: Due to volatility in the sector, markets also focus on the four week moving averages.

A monthly survey that measures the price changes of goods produced by manufacturers. The figure is also known as "Factory Gate Price" because it usually matches the price of goods when they first leave the factory. Increased prices in manufacturing typically lead to higher retail prices for consumers. However, it is also likely that higher output prices are caused by manufacturers charging a higher premium due to higher demand for their goods. Consequently, market trends in consumption should be considered with Output PPI to avoid data misinterpretation.

There is also a Core Output PPI, which excludes volatile items such as food and energy. The Core PPI is generally a better measure of inflation because it excludes those items whose short-term price fluctuations can distort inflationary data.

The headline is the percentage change in the Producer Price Index (Output) from the previous quarter and previous year.

Tracks developments in the number and value of outstanding home loans in Japan. .

A comprehensive measure of Japan's overall production and consumption of goods and services. GDP is a significant report in FX Market, serving as one of the primary indicators of a country's overall economic health.

Robust GDP growth signals a heightened level of economic activity and often a higher demand for the domestic currency. At the same time, economic expansion raises concerns about inflationary pressures which may prompt monetary authorities to increase interest rates. Thus positive GDP readings are generally bullish for the Yen, while negative readings are generally bearish.

Most production reports that lead to Japanese GDP are released before the official GDP number. Therefore, actual GDP figures usually confirm expectations. However, an unexpected release can move markets due to the significance of the figure.

Technically, Gross Domestic Product is calculated in the following way:

GDP = C + I + G + (EX - IM)

where
C = private consumption
I = private investment
G = government expenditure
EX = exports of goods and services
IM = imports of goods and services

The headline figures for GDP are the percentage growth rate from the previous quarter and the annualized percentage change in GDP. Prices used are benchmarked to 1997 prices.

Broad gauge of inflationary pressures. The GDP Deflator is different from the Consumer Price Index in that it does not take into account changes in the prices of imports and tends to underestimate price changes. The Gross Domestic Product Deflator is also untimely, released quarterly about two months after the reporting period. Nonetheless, it is highly correlated with the CPI and a key indicator of inflation. Consequently, the deflator provides insight into the future direction of monetary policy as the Bank of Japan is inclined to raise interest rates when faced with higher inflation.

Specifically the deflator measures the magnitude of changes in prices for all domestically produced final goods. It is the ratio of output in current prices (nominal GDP) to inflation-adjusted output (real GDP). The headline value is the percentage change in the GDP Deflator from the previous quarter.

The percent by which, according to consumers expectations, the prices for goods and services will change over the next 12 months.

The average wage is a measure for the financial well-being of a country's inhabitants.

Measures the per volume change in output from mining, quarrying, manufacturing, energy and construction sectors in Germany . Industrial production is significant as a short term indicator of the strength of German industrial activity. High or rising Industrial Production figures suggest increased production and economic expansion, healthy for the Euro. However, uncontrolled levels of production and consumption can spark inflation.

The report is only a preliminary estimate figure that does not move the markets much. The figure is released in headlines as a monthly percent change.

Capacity utilization measures the extent to which Japanese manufacturing companies make use of their installed productive capacity (factories and machinery). Capacity utilization reflects overall growth and demand in the economy. High capacity utilization usually exerts inflationary pressures as scarce resources are in high demand. However, it may also lead to new capital investments, such as new plants, that promote growth in the future.

As a technical note, capacity utilization is referred to as Operating Ratio by the Japanese Ministry of Economy, Trade and Industry, and indexed to the year 2000 with a base value of 100. The headline figure is the percentage change in the index from the previous month or previous year.

The indicator shows the inflow of foreign funds.

The number of individuals who filed for unemployment insurance for the first time during the past week. This is the nation's earliest economic data. The market impact fluctuates from week to week - there tends to be more focus on the release when traders need to diagnose recent developments, or when the reading is at extremes.
 

The value of sales made by Canadian wholesalers. Wholesalers sell to industries and retailers in quantities far larger than most consumers are willing to purchase. Given that growth in Wholesale Trade usually precedes increases in retail trade and consumption, changes in Wholesale Sales can be used as an early indicator for the overall direction of the retail sector, consumption and the economy. The headline figure reports the monthly percentage change in Wholesale Sales, seasonally adjusted to account for variations in demand due to seasonal cycles.

These sectors are farm products, food, beverages, and tobacco products, personal and household goods, automotive products, building materials, machinery and electronic equipment etc.

US Leading Indicators is a composite index designed to forecast trends in the overall economy. The index is based on ten key indicators known to precede changes in the economy. Though the index has a less than perfect historical record, it still is a worthwhile forecasting tool. Given the high volume of economic data, the Leading Indicators Index is useful by condensing ten indicators into one value headline figure. Headline numbers will be a percentage annual growth of the overall composite. As high values are indicative of economic growth, such figures bode well for the overall US Economy. Uncontrolled growth lead by this figure however may raise concerns about inflation and economic stability.

Measures the change in the prices paid by domestic producers. Producer prices, also known as factory gate prices, are those charged by producers usually before retail, consumer markets. Increases in German Producer Prices act as an early indicator of inflation, as higher producer prices may be passed to consumers in the form of higher retail prices. Rising inflation is significant, especially coming from the largest economy in the Euro-zone. German inflation will contribute to Euro-zone figures, and may be checked by increasing interest rates.

The headline is expressed as percentage change in the Producer Price Index.

Note: German PPI excludes volatile items, such as energy components and seasonal food, in order to provide a more accurate picture of price developments.
 

The Consumer Price Index excluding eight items which the Bank of Canada has deemed to have the most volatility from month to month. The goods omitted tend to fluctuate idiosyncratically and may distort CPI data. The headline figure for CPI is the percentage change in the index on a month to month and year to year basis.

Note : These Eight items include: fruit, vegetables, gasoline, fuel oil, natural gas, mortgage interest, inter-city transportation and tobacco products. Changes in the CPI Excluding the Core 8 are recognized as a better indicator of inflation than the regular CPI. The headline figure is reported as a percent change on both the month to month and year to year basis.

The key gauge for inflation in Canada. Simply put, inflation reflects a decline in the purchasing power of the Canadian Dollar, meaning each Dollar buys fewer goods and services. CPI is the most obvious way to measure changes in purchasing power - the report tracks changes in the price of a basket of goods and services that a typical Canadian household might purchase. An increase in the index indicates that it takes more Dollars to purchase this same set of basic consumer items.

As the most important indicator of inflation in Canada , Consumer Price figures are closely followed by Canada 's central bank. The Bank of Canada has a target inflation band of 1 - 3 % and uses CPI and Core CPI as its principle gauge (the Bank of Canada posts inflation targets and CPI on their homepage). A rising CPI may prompt the central bank to raise interest rates in order to manage inflation and slow economic growth. Higher interest rates make holding the Dollar more attractive to foreign investors, and this higher level of demand will place upward pressure on the value of the Dollar.