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. Investors look to the producer price index, which is a more relevant way of gauging inflation than CPI because of the large basket …
Personal Consumption Expenditures
Consumer spending, measured by Personal Consumption Expenditures (PCE), makes up approximately two-thirds of the economy and is a direct measure of purchasing activity. PCE is a reliable indication of inflation because it is calculated from data acquired directly from the GDP report and businesses. We see where consumers are spending their dollars, whether it be durable and nondurable goods, or …
Retail Sales
Retail Sales are the total amount of merchandise and related services sold to consumers. It is considered a sign of strength of U.S. Consumer spending, which accounts for roughly two-thirds of the economy. This indicator also provides insight into which areas of the retail space are experiencing strong sales. In April, retail sales remained largely unchanged, rising by a mere 0.02% …
Interest Payments
Last March, as the Coronavirus crisis was first beginning to unfold, the Federal Reserve slashed interest rates to record-low levels. Simultaneously, the Federal Government increased its already high spending through massive stimulus packages intended to reduce the pandemic’s impact on the economy—adding trillions to the national debt. Over the past year, the national debt soared from $23.2 trillion to $27.7 …
Retail Sales
Retail Sales are the total amount of merchandise and related services sold to consumers. It is considered a sign of strength of U.S. Consumer spending, which accounts for roughly two-thirds of the economy. This indicator also provides insight into which areas of the retail space are experiencing strong sales. In March, retail sales surged by 9.8% to $619.1 billion after a …
Personal Consumption Expenditures
Consumer spending, measured by Personal Consumption Expenditures (PCE), makes up approximately two-thirds of the economy and is a direct measure of purchasing activity. PCE is a reliable indication of inflation because it is calculated from data acquired directly from the GDP report and businesses. We see where consumers are spending their dollars, whether it be durable and nondurable goods, or …
Import and Export Price Indexes
The import and export price indexes measure changes in the prices of goods and services coming in and out of the United States. The data is used to deflate government trade statistics, predict future inflation and price changes, set fiscal and monetary policy, measure exchange rates, negotiate trade contracts, and identify specific industry and global trends. The indexes are updated …
Retail Sales
Retail Sales are the total amount of merchandise and related services sold to consumers. It is considered a sign of strength of U.S. Consumer spending, which accounts for roughly two-thirds of the economy. This indicator also provides insight into which areas of the retail space are experiencing strong sales. In February, retail sales fell by 3.0% to $561.7 billion from January’s …
Consumer Sentiment
The US Index of Consumer Sentiment (ICS), as provided by the University of Michigan, tracks consumer sentiment in the US, based on surveys on random samples of US households. The index aids in measuring consumer sentiments in personal finances, business conditions, among other topics. Historically, the index displays pessimism in consumers’ confidence during recessionary periods, and increased consumer confidence in …
Personal Consumption Expenditures
Consumer spending, measured by Personal Consumption Expenditures (PCE), makes up approximately two-thirds of the economy and is a direct measure of purchasing activity. PCE is a reliable indication of inflation because it is calculated from data acquired directly from the GDP report and businesses. We see where consumers are spending their dollars, whether it be durable and non-durable goods, or …
Chicago Fed National Activity Index
The Chicago Fed National Activity Index (CFNAI) is a weighted average of 85 existing monthly indicators of national economic activity that are divided into four broad categories of data: production & income; employment, unemployment, & hours; personal consumption & housing; and sales, orders, & inventories. It is constructed to have an average value of zero and a standard deviation of one. …
Index of Consumer Sentiment
The US Index of Consumer Sentiment (ICS), as provided by the University of Michigan, tracks consumer sentiment in the US, based on surveys on random samples of US households. The index aids in measuring consumer sentiments in personal finances, business conditions, among other topics. Historically, the index displays pessimism in consumers’ confidence during recessionary periods, and increased consumer confidence in …
U.S. Initial Jobless Claims
US Initial Jobless Claims, provided by the US Department of Labor, provides underlying data on how many new people have filed for unemployment benefits in the previous week. Given this, one can gauge market conditions in the US economy concerning employment; as more new individuals file for unemployment benefits, fewer individuals in the economy have jobs. Historically, initial jobless claims …
It’s the end of the world as we know it – and we will be fine
One of my most despised words over the past five years is “unprecedented.” The word has been used so much that I’m pretty sure its true definition has become “normal.” “Unprecedented” times have now become “normal” times. At least it seems so. The first real piece of economic data is in on the “COVID-19 economy” and that is the jobs …