Factors Used to Analyze an Economy

The economic data to look for when trying to analyze or to compare two different economies is basically the same in each country, sometimes just the name being different. Depending on what economy is referring to, they are called PMI’s in Europe and UK, ISM in the United States, or Ivey PMI in Canada, for example.

However, there are some fundamental indicators that are common for each and every economy and traders are looking at the releases with the expectation that they will offer some guidance for the future move price will make.

Such common economic releases are common for all economies and are carefully scrutinized by traders. Below you can find some examples, with more details to come by the time we will treat each and every one of them separately in the chapter dedicated under this educational series:

  • unemployment rate;
  • consumer price index (measured move for inflation);
  • gdp (gross domestic product);
  • retail sales;
  • consumer confidence;
  • factory orders;
  • capacity utilization;

These kind of indicators that are being released on a monthly basis or on a quarterly basis are offering the possibility to compare two different economies on the base of potential growth, sustainability, access to financial markets, etc, and this is the basis for fundamental analysis.

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