TradeSense: Economic Indicators, 8 August
This page is updated daily with information that can help expand your trading knowledge and add to your trading armoury.
Here we cover details of some of the more important economic reports of the day, including when they are released, what they mean and how they may affect the financial markets.
Visit us daily for the latest posting from the TradeSense databank (the complete databank resides in the client area of our website and contains a full list of reports for every economic indicator that we cover).
Japan - Money Supply M2 + CD (YoY)(July)
Released by: Bank of Japan (monthly report)
Time: 00.50
What is it?
A money indicator used by the Bank of Japan which closely correlates with real economic avtivity. The figure includes all currency in circulation as well as bank deposits (CD = Certificates of Deposit).
The headline figure is a percentage change from the previous year.
Why is it important?
Growth in Money supply has historically been shown to be a leading indicator of gowth in GDP. This figure focuses for the most part on individual deposit accounts, rather than institutional accounts, making it a better indicator than broader measures.
What are market expectations?
A survey of analysts conducted by Bloomberg shows a consensus of +2.4%, from last month's figure of 2.3%.
US- Nonfarm Productivity (Q2)
Released by: Bureau of Labor Statistics of the US Department of Labor
Time: 13.30
What is it?
The figure shows labour output excluding the farming sector, on a hourly basis.
Why is it important?
A high reading is desirable as it shows a healthy business sector which bears an influence on the country's GDP.
What can we expect?
Based on a Bloombergy survey of economists, Nonfarm Productivity is expected at 2.5%. This is in comparison to last month's change, which was 2.6%.
US- Unit Labour Costs (Q2)
Released by: Bureau of Labor Statistics, Department of Labor
Time: 13.30
What is it?
It shows the total cost of employing a labour force.
Why is it important?
The figure also gives an indication of trends in inflation, share prices, and the cost of production.If labor costs rise, consumers tend to bear the brunt through rising inflation.
What can we expect?
Based on a Bloomberg survey of economists, the median estimate was 1.4%, from last month's figure of 2.2%.
US– Wholesale Inventories (June)
Released by: US Census Bureau (monthly report)
Time: 15.00
What is it?
This report gives the value of sales made and inventories held by merchant wholesalers, adjusted for seasonal variations.
The figures are also broken down according to subsets such as durable goods (that is, products intended to last three years or more), non-durable goods (such as food and clothing) and autos.
Wholesale Inventories are reported in headlines as a percent change from the previous month.
Why is it important?
Wholesale sales and inventories data does not usually have a dramatic or immediate effect on the bond or stock market, but data at this level, as opposed to at the consumer level, does offer an insight into the economy and can offer a foretaste of future consumer trends and comparing changes in the Inventories/Sales Ratio can provide useful indications of changes in the economy.
For example, a dropping Inventories/Sales Ratio caused by, say, unexpectedly high sales figures, suggests that manufacturers will have to increase production levels at some point if product shortages are to be avoided.
Conversely, an increasing Inventories/Sales Ratio points toward a requirement for a slow down in production in order to help ship out unplanned build-ups of inventory
What are market expectations?
A Bloomberg survey of economists gives a median forecast of a month on month increase of +0.6%, as compared with the last figure of +0.8%.