20-City Index

S&P / Case-Shiller 20-City Index

December 27, 2016 – The 20-city S&P/Case-Shiller index is a measure of existing home values across 20 metropolitan areas throughout the U.S.  Home values have a broad impact on the economy, including the housing and consumer sectors. The 20-city S&P/ Case Shiller index recorded a seasonally-adjusted increase of approximately 0.6% in October, slightly above consensus expectations of 0.5% growth. September’s …

New Home Sales

New Home Sales

December 23, 2016 – New single-family home sales represent the number of brand new houses that were purchased or committed to being purchased over the course of a month.  This indicator has a trickle-down effect as demand rises for durable goods and consumer spending increases, boosting GDP.  It is also a sign of strength in the consumer balance sheet to …

Consumer Spending

Consumer Spending and Personal Income

December 22, 2016 – Consumer spending, measured by Personal Consumption Expenditures (PCE), makes up approximately two-thirds of the economy and is a direct measure of purchasing activity.  We are able to see where consumers are spending their dollars, whether it be durable and nondurable goods, or on services.  Changes in the personal income level dictate consumer spending. Consumer spending increased …

Gross Domestic Product

Components of GDP Percent Change

December 22, 2016 – Gross Domestic Product (GDP) is the broadest measure of economic activity within a country and measures the market value of all final goods and services produced within a country over a certain time frame.  There are four components GDP is created from:  investment (including residential and nonresidential expenditures), consumption (including durable goods, non-durable goods, and services …

Durable Goods Orders

Durable Goods Orders

December 22, 2016 – Durable goods orders, which are orders to buy products that are expected to last at least 3 years, indicates how busy factories will be in the near future.  As the name suggests, durable orders provide a look into the demand for equipment such as machinery along with other big ticket purchases such as vehicles and appliances. …

Existing Home Sales

Existing Home Sales

December 21, 2016 – Existing home sales provide the number of purchases made for homes, condominiums, and co-ops that have already been built.  Existing home sales give an indication of demand for housing.  While home resales may not generate new construction jobs like housing starts do, they have a similar effect on consumer spending as people purchase items for their …

Housing Starts

Housing Starts

December 16, 2016 – Housing starts track the number of new residential construction projects underway over the course of a month. This indicator has implications for demand in construction spending/jobs, consumer wages, and complimentary sectors such as durable household item sales. Along with building permits, a metric counted when permission is granted and thus provides insights to future housing and …

Consumer Price Index

Consumer Price Index

December 15, 2016 – The Consumer Price Index (CPI) tells us of any inflationary pressures in the economy.  The CPI measures the average price levels of a basket of goods and services purchased by consumers.  The index starts with a base time period (1982-1984, currently) and shows the overall increase since that time.  As with many economic indicators, it can …

Producer Price Index

December 14, 2016 – The Producer Price Index (PPI) looks at the average change in selling prices from the viewpoint of domestic producers of both goods and services. Three areas of production are observed: industry-based, commodity-based and commodity-based final demand-intermediate demand. The Producer Price Index experienced a 0.4% increase in November, exceeding consensus expectations of a 0.2% increase.  The PPI …

Industrial Production

Industrial Production Index

December 14, 2016 – The Industrial Production Index (IPI) measures the manufacturing, electric, mining, and gas industries output on a monthly basis. Production for November decreased 0.4%, which is lower than last month’s data after it was upwardly revised to 0.1% (+0.1%). However, it missed consensus expectations of -0.2%. Manufacturing output was in line with expectations of a 0.1% decrease, …