The Hometrack housing price index shows the change in the price range at the residential real estate market.

The difference between the total value of exports and the total value of imports. A positive figure indicates a trade surplus while a negative value represents a trade deficit. Because Japan 's economy is highly export-led, trade data can give critical insight into developments in Japan 's economy and changes into foreign exchange rates.

A surplus reflects capital flowing into Japan in exchange for Japanese exports, and a deficit means that capital is flowing out of Japan as imports are purchased in larger volumes by Japanese consumers. A trade surplus will act as an appreciating weight on the Yen, whereas a trade deficit will place downward pressure on the Yen's value.

Details in the Trade Balance report itself give useful insight into changing trends regarding Japanese trade. Such developments are especially important for the country, which is an export-oriented economy that has historically experienced large trade surpluses. Any affect on this could have dramatic affect on the domestic economy.

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

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 price 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.

Core PPI, Excluding Food and Energy

The PPI is also reported without the volatile food and energy components. In addition to being seasonally volatile, the two comprise a significant portion of US goods. As a result, any sudden disruption in oil or food supplies will significantly distort the Producer Price Index inflation assessment. By excluding such entities, Core PPI is able to provide a truer, more consistent picture of US inflation trends.

The Chicago Fed National Activity Index (CFNAI) is a monthly index designed to better gauge overall economic activity and inflationary pressure. The CFNAI is released on scheduled days, normally toward the end of each calendar month.

A new monthly survey by the Federal Reserve Bank of Dallas indicates an optimistic outlook for manufacturing activity in the state.

Change in the price of services purchased by corporations. It's a leading indicator of consumer inflation - when corporations pay more for services the higher costs are usually passed on to the consumer.

This index reflects import price change per month.

The survey results are quantified into index where 0 represents long term Consumer Confidence averages. The headline figure is expressed in percentage change.

On a technical note: The German Consumer Confidence survey is conducted monthly by GfK, a market research organization, on behalf of the EU commission. The survey results are obtained monthly based on more than 2000 consumer interviews about their personal spending patterns, inflationary expectations and opinion on economic outlook. Then the aggregate result is categorized by German social groups: students, high/medium/low income and the retired.

Index for consumer spending in Switzerland. The Consumption Indicator moves with changes in real consumer spending and can be used as a gauge of the strength of domestic demand. A rising indicator value reflects rising consumer spending, which generally leads to economic growth and potentially augur inflationary pressures to come.

The UBS Consumption Indicator is calculated using five specific indicators of spending and expressed in the form of an index. These indicators are: new car sales, business trends in retail, overnight hotel stays by Swiss nationals in Switzerland , the consumer sentiment index and credit card transactions.

The headline is the index value for the month. Because the index value is always positive markets compare the current index value to the short and long-term average values in order to gauge Switzerland 's economic health. In the long term the average has been approximately 1.5, but may change with time.
 

The broadest measure of money supply in use by Euro-zone nations. It includes all currency in circulation, bank deposits, repurchase agreements, debt securities up to 2 years, and the value of money market shares. A larger money supply reduces the purchasing power of the Euro and puts downward pressure on the exchange rate. However, because an increase in M3 leads to price inflation, this figure can also be indicative of the likelihood of future interest rate hikes. The Euro-zone M3 is reported in headlines as a percent change from the previous month or as a Three Month Average, which smoothes monthly volatility in the money supply.

The total supply of money in circulation in a given country's economy at a specific time. The primary measures of money supply include: M1, M2, and M3...

Level of a diffusion index based on surveyed retailers and wholesalers: above 0 indicates higher sales volume, below indicates lower. This is a survey of about 160 retail and wholesale companies which asks respondents to rate the relative level of current sales volume. It's a leading indicator of consumer spending because retailer and wholesaler sales are directly influenced by consumer buying levels.
 

Every month the S&O/Case-Shiller and the U.S. National Home Price Index (HPI) announced the annual changes in average housing price in the headmost 20 country - subdividing regions.

Assesses regional manufacturing conditions for the Richmond Fed District. Based on mail-in surveys from a representative sample of manufacturing plants, the Richmond Fed Index seeks to track industrial performance. The report puts particular emphasis on inflationary pressures.

Though the Richmond Fed Manufacturing Survey is valued for its quick turnaround, it is still released after the ISM survey. As a result, the figure is often used to affirm or question the ISM report, and has little impact on markets. The Richmond Fed Manufacturing Survey also asks manufacturing executives to stress price expectations. Some markets participants use this data as an early gauge to CPI and PPI reports released a few days later.

The headline figure is a three-month average, calculated by finding the percentage difference between positive and negative responses for the last three months, using a zero boom/bust centerline.

Note: The survey covers such topics as shipments, order volume, backlog volume, capacity utilization, vendor lead time, employees, average workweek, wages, inventory levels, and capital expenditures. The Fifth District includes the District of Columbia , Maryland , both Carolinas, and most of the Virginias .

A monthly measure of New Zealand business confidence. A representative sample of New Zealand's businesses is surveyed about their outlook for the next twelve months. Positive sentiment bodes well for the economy, usually associated with higher employment, rising income, and increased investment due to expectations of economic expansion. It is a good early indicator for the direction of the economy, rising before economic boon and falling prior to recessions. Questions covered: business confidence, labor market, interest rates, inflation, and many other economic outlook conditions.

The figure is reported as the percentage of optimistic businesses surveyed minus the percentage of those that believe conditions will deteriorate.

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.

The value of orders placed for relatively long lasting goods. Durable Goods are expected to last more than three years. Such products often require large investments and usually reflect optimism on the part of the buyer that their expenditure will be worthwhile.

Because orders for goods have large sway over the actual production, this figure serves as an excellent forecast of U.S. output to come. Durable Goods are typically sensitive to economic changes. When consumers become skeptical about economic conditions, sales of durable goods are one of the first to be impacted since consumers can delay purchases of durable items, like cars and televisions, only spending money on necessities in times of economic hardship. Conversely, when consumer confidence is restored, orders for durable goods rebound quickly. The data is highly volatile as well, some volatility is eliminated with the Durable Goods Orders excluding Transportation figure, making it the more closely watched indicator.

The headline figure is expressed as a percentage change from previous months.

Durable Goods Orders Excluding Transportation

The Durable Goods Orders figure is also reported excluding transportation expenditures. Orders for items like civilian vehicles or aircrafts are fairly expensive and fluctuate idiosyncratically, distorting the Durable Goods Orders figure. Such goods are excluded to provide a better measure of durable goods orders.

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 Germany , 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 German household might purchase. An increase in the index indicates that it takes more Euros to purchase this same set of basic consumer items.

The German CPI is significant as one of the primary gauges of inflation. As the largest Euro-zone economy, inflation in Germany will contribute significantly to inflation in the Euro-zone and the behavior of the European Central Bank. High or rising inflation acts as a signal to the ECB to raise interest rates, an action which will result in the strengthening of the Euro. The headline figure for CPI is the percentage change in monthly and annualized percentage term.

Report on current economic conditions in each of the 12 Federal Reserve districts covering the entire US. Regional Banks in the Federal Reserve System gather anecdotal information based on surveys of executives, economist and market participants. The Beige Book summarizes this data into a relatively short document, giving a picture of economic trends and challenges faced by different parts of the nation.

In addition to providing useful information on the economy, the report is also a window into how FOMC members may vote at the next interest rate policy meeting. Because each report is based on anecdotal information as much as statistics, it is subjective and may reflect opinions of district governors. As the only comprehensive report made available to the public, the Beige Book provides a rare opportunity for markets to better understand the Federal Reserve and its views on the economy.

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.

Gauge for goods sold at retail outlets in the past month. Retail Sales is a leading indicator for the economy. Rising consumer spending fuels economic growth, confirms signals from consumer confidence, and may spark inflationary pressures.

The headline figure is expressed as the percentage change from the same month last year.

Survey that queries economic participants on their current and future expectations for the UK economy. Rising consumer confidence generally precedes increased consumer spending, which drives both economic growth and inflation. The figure is released at the start of each month, making Nationwide Consumer Confidence a timely measure of consumer sentiment now and in the immediate future.

The headline figure is the index value for the Nationwide Consumer Confidence Index, where the May 2004 figure is 100.

The amount of international reserves reflects the external - economic turnover and capital flows during earlier periods.

Number of new mortgages approved for home purchase by BBA-represented banks during the previous month. The BBA represents major banks that make up around 60% of total UK mortgage lending.
 

Mortgage loans are usually an indicator of consumer confidence and housing activity; consumers who feel confident about their financial position generally feel comfortable borrowing and spending money. This also has an impact on other indicators as well. Ultimately, this is an indicator of a country’s overall economic activity and health.

The dollar value of consumer installment credit outstanding. Changes in consumer credit indicate the state of consumer finances and portend future spending patterns.

Gauge for the overall performance of the German service sector. The Services PMI interviews German executives on the status of sales, employment, and their outlook. Because the performance of the German 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.

The Euro-zone Manufacturing Purchasing Managers Index (PMI) assesses business conditions in the manufacturing sector. Because the manufacturing sector represents nearly a quarter of total Euro-zone GDP, the Euro-zone Manufacturing PMI is both a significant and timely indicator of business conditions and the general health of the economy. Results are quantified in an index in which values above 50 indicate an expected increase of business conditions and values below 50 signal an expected deterioration.

Consumer confidence is a measure of popular sentiment concerning the Eurozone's economy. The figure is derived from a survey that asks thousands of 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 t he Italian 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.

Euro-zone Confidence and Sentiment Indicators - Euro-zone

Based on the results of numerous surveys, these indicators are designed to forecast the direction of the Euro-zone economy. Each indictor is the balance of positive and negative responses. If there are more optimistic responses the headline figure will be positive, while a greater number of negative responses will result in negative figure. The strength of the sentiment can be seen in the magnitude of the figure.

Euro-zone Business Climate Indicator

Gauges current business conditions in the Euro-zone. Based on industrial sector surveys the BCI strives to provide a timely and clear picture of business sentiment in the Euro-zone. A high or rising Business Climate figure generally indicates a healthy economy and business climate; conversely, a low or declining figure signals an unfavorable or worsening economy. As business and consumer confidence increases we typically see similar increases in investments, production, and consumption and economic growth.

Euro-zone Economic Confidence

An overall gauge of sentiment toward the economy in the Euro-zone. The index is a composite of most of the sector specific surveys done by the European Commission. A high or rising level of Economic Confidence indicates healthy levels of purchasing, business spending, and investment - a positive economic outlook conducive to the strengthening of the economy and the Euro.

Reported in the European Commission's Business and Consumer Surveys, economic confidence brings together 5 confidence indicators with different weights: Industrial Confidence (40%), Service Confidence (30%), Consumer Confidence (20%), Construction Confidence (5%), and Retail Trade Confidence Indicator (5%).

Euro-zone Consumer Confidence

Measures consumer sentiment in the Euro-zone nations. The figure is the result of Euro-zone consumer surveys personal finance, the job market, the likelihood of saving and expectations on the economy. High levels of consumer confidence bode well for the economy, indicating consumers are more likely to increase consumption spurring growth and potentially sparking inflation. Conversely, low consumer confidence levels suggest decreased spending.

The figure is determined by the difference between positive and negative answers. Therefore a headline above zero indicates positive consumer confidence, while a negative number shows more negative answers.

Euro-zone Industrial Confidence

A measure of industry sentiment in the Euro-zone nations. Based on a survey among industrial executives, Industrial Confidence asks for production expectations. Specifically the European Commission asks about recent orders and buildup of inventories. Higher levels of industrial confidence indicate a positive outlook for future business spending and capital investment. Despite the fact that manufacturing accounts for only about a quarter of Euro-zone business, industry accounts for most of the volatility in GDP. Thus developments here have significant impact on overall growth in Europe.

The figure is determined by the difference between positive and negative answers. A headline above zero indicates positive industrial confidence, while a negative number shows negative confidence.

Euro-zone Services Confidence

A gauge of business sentiment in the services sector. The figure is derived from a survey asking firms in the service sector about current and expected demand. Since the service sector accounts for roughly two thirds of total Euro-zone GDP, Services Confidence provides an important confirmation of the health for the overall economy. High levels of Services Confidence suggest future upward trends for production and employment.

The figure is determined by the difference between positive and negative answers. Therefore a headline above zero indicates positive service sector confidence, while a negative number shows negative confidence.

Euro-zone Confidence and Sentiment Indicators - Euro-zone

Based on the results of numerous surveys, these indicators are designed to forecast the direction of the Euro-zone economy. Each indictor is the balance of positive and negative responses. If there are more optimistic responses the headline figure will be positive, while a greater number of negative responses will result in negative figure. The strength of the sentiment can be seen in the magnitude of the figure.

Euro-zone Business Climate Indicator

Gauges current business conditions in the Euro-zone. Based on industrial sector surveys the BCI strives to provide a timely and clear picture of business sentiment in the Euro-zone. A high or rising Business Climate figure generally indicates a healthy economy and business climate; conversely, a low or declining figure signals an unfavorable or worsening economy. As business and consumer confidence increases we typically see similar increases in investments, production, and consumption and economic growth.

Euro-zone Economic Confidence

An overall gauge of sentiment toward the economy in the Euro-zone. The index is a composite of most of the sector specific surveys done by the European Commission. A high or rising level of Economic Confidence indicates healthy levels of purchasing, business spending, and investment - a positive economic outlook conducive to the strengthening of the economy and the Euro.

Reported in the European Commission's Business and Consumer Surveys, economic confidence brings together 5 confidence indicators with different weights: Industrial Confidence (40%), Service Confidence (30%), Consumer Confidence (20%), Construction Confidence (5%), and Retail Trade Confidence Indicator (5%).

Euro-zone Consumer Confidence

Measures consumer sentiment in the Euro-zone nations. The figure is the result of Euro-zone consumer surveys personal finance, the job market, the likelihood of saving and expectations on the economy. High levels of consumer confidence bode well for the economy, indicating consumers are more likely to increase consumption spurring growth and potentially sparking inflation. Conversely, low consumer confidence levels suggest decreased spending.

The figure is determined by the difference between positive and negative answers. Therefore a headline above zero indicates positive consumer confidence, while a negative number shows more negative answers.

Euro-zone Industrial Confidence

A measure of industry sentiment in the Euro-zone nations. Based on a survey among industrial executives, Industrial Confidence asks for production expectations. Specifically the European Commission asks about recent orders and buildup of inventories. Higher levels of industrial confidence indicate a positive outlook for future business spending and capital investment. Despite the fact that manufacturing accounts for only about a quarter of Euro-zone business, industry accounts for most of the volatility in GDP. Thus developments here have significant impact on overall growth in Europe.

The figure is determined by the difference between positive and negative answers. A headline above zero indicates positive industrial confidence, while a negative number shows negative confidence.

Euro-zone Services Confidence

A gauge of business sentiment in the services sector. The figure is derived from a survey asking firms in the service sector about current and expected demand. Since the service sector accounts for roughly two thirds of total Euro-zone GDP, Services Confidence provides an important confirmation of the health for the overall economy. High levels of Services Confidence suggest future upward trends for production and employment.
The figure is determined by the difference between positive and negative answers. Therefore a headline above zero indicates positive service sector confidence, while a negative number shows negative confidence.

Measures the prices paid by Canadian manufacturers for key raw materials, including resources not produced in Canada. Also known as the Producer Price Index, the RMPI is an early measure of inflation. Although producers may not pass on changes in raw material prices to consumers immediately, the index will record these cost pressures before they reach the end consumer and affect inflation rates. The headline figure is the percentage change in the price index from the previous month and year.

The index includes prices for raw materials like mineral fuels, vegetable products, animal and animal products, wood, ferrous materials, non-ferrous metals, and non-metallic minerals.
 

Measures the prices paid by Canadian manufacturers for key raw materials, including resources not produced in Canada. Also known as the Producer Price Index, the RMPI is an early measure of inflation. Although producers may not pass on changes in raw material prices to consumers immediately, the index will record these cost pressures before they reach the end consumer and affect inflation rates. The headline figure is the percentage change in the price index from the previous month and year.

The index includes prices for raw materials like mineral fuels, vegetable products, animal and animal products, wood, ferrous materials, non-ferrous metals, and non-metallic minerals.

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.
 

On a global basis, the indicator is very important for the economy, as it reflects consumers sentiments which formed the major portion of Great Britain GDP.

National Consumer Price Index (CPI) is the key gauge for inflation in Japan. Simply put, inflation reflects a decline in the purchasing power of the Yen, where each Yen buys fewer goods and services. In terms of measuring inflation, CPI is the most obvious way to quantify changes in purchasing power. The report tracks changes in the price of a basket of goods and services that a typical Japanese household might purchase. An increase in the index indicates that it takes more Yen to purchase this same set of basic consumer items.

Markets will typically pay more attention to "CPI excluding Fresh Food," because it excludes volatile food prices that can distort overall CPI. The headline figure for CPI is the percentage change in the index on a month to month or year to year basis.

As the most important indicator of inflation, CPI figures are closely followed by the Bank of Japan. Rising Consumer Prices may prompt the BoJ to raise interest rates in order to manage inflation and slow economic growth. Higher interest rates make holding the Yen more attractive to foreign investors, and this higher level of demand will place upward pressure on the value of the Yen.

A survey of both wage-earning and non-working households, such as those classified as single-member, unemployed, or retired. The headline figure is the percentage change in average spending per household from the previous year. Increases in household spending are favorable for the Japanese economy because high consumer spending generally leads to higher levels of economic growth. Higher spending is also a sign of consumer optimism, as households confident in their future outlook will spend more. At the same time accelerated growth exerts inflationary pressure, which can lead to interest rate increases in the future.

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.

Indicator, showing volumes' rate of growth in the sector of private loans in Australia.

The Housing Starts figure reflects the rate of growth in housing construction. The number of housing starts is an indicator of the strength Japan 's construction sector and a leading indicator for the direction of the economy as a whole. Housing Starts respond quickly to changes in the business cycle, promptly slowing at the onset of a recession and growing at the beginning of an economic boom. A high Housing Starts figure is generally bullish for the economy, as it indicates overall economic growth.

The headline figures are the year on year percentage change in value of housing starts, and the value of all houses started for construction that year.

This report provides information on how many orders were received by construction companies to begin work. The report is compiled into three categories, type of firm (private manufacturer, governmental), region, and type of construction project. Since orders for construction serve as one of the earliest signals of expanded housing supply, the report is a leading indicator for the overall housing market. Also, because of the high outlays needed for construction projects high Construction Orders also suggest optimism for corporate or consumer spending. Lastly, due to the multiplier effect housing has on the economy; building indicators are popular leading indicators for the rest of the economy.

The headline is the percentage change in new construction orders over the previous year.

The monetary base is volume of money in the economy consists of currency (banknotes and coins) in circulation and commercial banks reserves in the Central Bank.

Gauge for goods sold at retail outlets in the past month. Retail Sales is a leading indicator for the economy since private consumption makes up a large portion of German Gross Domestic Product. Rising consumer spending fuels economic growth, confirms signals from consumer confidence, and may spark inflationary pressures.

The headline figure is expressed as the percentage change from the same month last year.

The percentage of individuals in the labor force who are without a job but actively seeking one. A higher Unemployment Rate is generally a drain on the economy. Not only does it mean that resources are not being fully utilized, but it also results in lower consumer spending as there are fewer workers receiving paychecks.

The unemployment rate generally moves slowly, so changes of only a few tenths of a percent are still considered significant. Also note that the unemployment rate does not account for discouraged workers. Therefore, in an economically depressed environment, such as that which occurred in Cold War era East Germany, the Unemployment Rate may not accurately reflect the extent of problems.

CPI is the key gauge for inflation in the Euro Zone. 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 Euro Zone 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.

Swiss KoF Leading Indicators A composite of business surveys from various sectors of the economy (industry, retail and wholesale) that is combined to form a leading indicator that aims to project GDP growth approximately 8 months into the future.

Measures overall economic activity through a qualitative business survey about developments in the recent past, the current situation and expectations for the next three to six months. Survey questions relate to production, orders and stocks of finished goods. The Swiss Institute for Business Cycle Research (KOF) publishes this indicator monthly.

The KOF institute sponsors a number of business surveys, namely a monthly industry survey, a monthly retail trade survey, and a quarterly wholesale activity survey. These surveys, along with other information, are used to construct the monthly KOF composite leading indicator, which aims to track GDP growth and provide indications of major cyclical turning points about eight months in advance. In practice, the indicator appears to give a reading of the behaviour of GDP growth in the quarter of the reference month. Results are reported as the percent balance between optimistic and pessimistic responses. In addition to the monthly industry survey, the KOF also conducts a more exhaustive quarterly survey, which includes information on capacity utilization.

The composite leading indicator has six components: the change in manufacturers' orders inflow compared to the previous year's month; the change in manufacturers' order backlog over the previous month; manufacturers' expected purchase of intermediate and raw materials within the next three months; the judgement of stocks in wholesale business (quarterly series); households' judgements of their financial situation in the next year (from the quarterly survey of consumer confidence by the State Secretariat for Economic Affairs); and the quantitative year-to-year change in real orders' backlog in the construction sector (quarterly series). The three quarterly components of the leading indicator are introduced into the calculations for the KOF leading indicator for the reference month after the end of that quarter. The six component series are seasonally adjusted before being combined into the composite leading indicator.

A comprehensive measure of a Canada'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 Canadian Dollar, while negative readings are generally bearish.

Most production reports that lead to Canadian 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.

Monthly measure of the business conditions based on surveys of purchasing managers across Illinois, Indiana and Michigan. Released on the last business day of the reporting month, the report's significance has recently declined, with its only significance being that it precedes the more anticipated ISM report. Subsequently, it is used to predict the ISM report as the Chicago survey retains a high correlation with the broader economic release.

Referring to a benchmark of 50, the report is considered to reflect expansion when printing a reading of 50 or higher. Conversely, a reading of 49 and lower would be indicative of contraction.

Assesses consumer confidence regarding personal finances, business conditions and purchasing power based on hundreds of telephone surveys. Especially valued for its quick turnaround, the University of Michigan Confidence survey is considered one of the foremost indicators of US consumer sentiment. The survey polls a smaller sample of consumers and is less established than the Conference Board Consumer Confidence Index.

Declining consumer confidence levels usually accompany any fall income or wages and precede drops in consumer spending. A low or falling U Mich Sentiment value is considered an early indicator of an economic downturn. As a result, investors, retailers and traders alike all watch the figure for insight into the general health of the economy. UMich figures have recently preceded turning in overall GDP.

The headline figure is calculated by subtracting the percentage of unfavorable replies from the percentage of favorable replies.