Christian Community Mortgage Resource Network
Monthly Economic Indicators
Every month, there is information released that can be helpful (and interesting) to look for as guideposts to our nation's economic health. The following is a listing of the most common and most important monthly economic indicators. They are ranked in order of importance.
Employment Situation Report
Provides information on unemployment rate, non-farm payroll, average work week and overtime. All variances portray the economy's strength and are important determinants of consumer sentiment. (Release Date: usually the 1st or 2nd Friday morning of each month.)
Consumer Price Index (CPI)
The key index for gauging inflation. The CPI compares relative price changes over time. An index is constructed because consumers purchase a wide variety of goods and services such as food, clothing, shelter, public utilities and medical care. The CPI is calculated by determining a base period (i.e., 1992-1994) and then assigned an index number of 100. Price variances are then reported as a percent change from this base. For instance, if prices rose 5%, the index would be 105.0. If prices fell 10%, the index would be 90.0. (Release Date: mid-month, usually on a Friday.)
Producer Price Index (PPI)
Shows changes in prices charged by producers of finished goods. These changes are reflected in prices consumers must pay. Used as an inflationary gauge. (Release Date: mid-month.)
Leading Indicators
Components of the index include: average weekly hours of production, unemployment insurance claims, manufacturers new orders, consumer goods, order for plants and equipment, housing permits, durable goods, material prices, stock prices, money supply, and consumer expectations. (Release Date: usually the first Friday of a month.)
Gross Domestic Product (GDP)
The broadest available measure of economic activity. It provides the official scale with which fluctuations in the economy are measured. Reflects overall pace of real growth during quarters of each year. (Release Date: last week of a month.)
Retail Sales
Reflects consumer spending including automobiles and department store sales. (Release Date: usually the 2nd week of a month.)
Housing Starts
Always direct your attention to the seasonally adjusted monthly figure presented at an annual rate. The housing-starts figure often varies wildly from month-to-month and is sometimes substantially revised. (Release Date: usually 17th to 20th of each month.)
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