Economic indicators and their meaning, part ІІІ

economic indicators
Economic indicators

Applications for unemployment benefits

This indicator shows the change in the number of requests for unemployment benefits. It is published every week on Thursday at 3:30 PM. These data do not always reflect the real events. They sometimes change under the influence of short-term factors, such as national or local holidays. This indicator gives the idea of the following appearance of the indicator “Nonfarm payrolls”. It has a limited impact on the market. Reduction in the amount of Applications for unemployment benefits is a favorable factor for the growth rate of the U.S. dollar.

Philadelphia FED Index

This indicator presents the results of the inquiry in Philadelphia manufacturers, based on their attitude towards current economic information. Values below 0 are an indicator for a slow up of the pace in the economic development. This indicator has significant impact on the market.

Index of leading indicators

This indicator appears as an average weighted quantity of the following indicators: production orders, volume of applications received  for unemployment benefits, money supply index M, size of the average working week, permission for construction of real estates, price of the underlying shares, orders for durable goods, index of consumer confidence. This index is considered to characterize the economy development over the last 6 months. Also there is an empiric rule that if the value of this indicator has a negative effect for three consecutive months, it is a slow indicator of economic development. It has a limited impact on the market. This limited influence is explained by the fact that its value is given months after the accounting period, when practically all major indicators are already published.

Oil reserves

EIA (Energy Information Administration) gives data for the exported oil stocks every week. This includes the number of barrels that American companies keep as reserves. Those from the strategic reserve of the country are not included. A significant change in numbers could affect oil prices, inflation and other economic factors.

Natural gas reserves

EIA (Energy Information Administration) gives data for the stocks of natural gas every week. They are expressed in billion cubic feet, located under the ground as storage in the USA territory. They have an insignificant impact on the market.

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