Global indicators Ryan's
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The document provides economic indicators for several countries including the United States, China, Germany, Japan, and Singapore. It shows data on GDP growth rates, PMI levels, consumer confidence indices, government spending amounts, unemployment rates, labor participation rates, trade balances, and M2 money supply growth rates for 2012. China has relatively high GDP growth, PMI, consumer confidence, and M2 growth compared to other countries listed.
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Global indicators Ryan's
- 10. GDP Growth Rate(%) United States China Germany Japan Singapore 0.016 0.075 0.009 0.009 0.051 PMI 52.8 51.1 51.1 54.2 50.5 Consumer Confidence Index 78.6 99.8 38.5 44.3 98 Government Spending(USD bil) 2906 210.969 158.02 1035.846 6.38007 0.0756 0.041 0.054 0.0403 0.021 64 74 60 60 67 -34.5 27.1 22.9294 1.8466 3.7394 4.839070333 14.39165202 -0.879529585 2.236578958 7.225307387 Unemployment Rate Labour Participation Rate as of 2012 Trade Balance (US$ bil) M2 Growth(%)
- 11. China
- 13. Equities & Bonds • Bullish on China’s economic outlook and economic growthBullish on equities market • Will select stocks from this region • Expects inflationIncrease of Interest ratesInfluences selection of bond
Editor's Notes
- http://www.thebadgecentre.co.uk/country-badges/usa-round-flag.html(USA)http://img.freeflagicons.com/thumb/round_icon/singapore/singapore_640.pnghttp://www.wintherbikes.com/sites/default/files/media/images/Forhandlere/Flag/Germany.pnghttp://www.wintherbikes.com/sites/default/files/media/images/Forhandlere/Flag/Germany.pnghttp://img.freeflagicons.com/thumb/glossy_round_icon/china/china_640.pnghttp://img.freeflagicons.com/thumb/glossy_round_icon/china/china_640.pnghttp://ec.l.thumbs.canstockphoto.com/canstock6957149.jpg
- DP = C + G + I + NXwhere:"C" is equal to all private consumption, or consumer spending, in a nation's economy"G" is the sum of government spending"I" is the sum of all the country's businesses spending on capital"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports) http://www.aaii.com/journal/article/the-top-10-economic-indicators-what-to-watch-and-why.touchWhy is it important? The Federal Reserve uses data such as the real GDP and other related economic indicators to adjust its monetary policy.Investors look at GDP growth to see if the economy is changing rapidly so they can adjust their asset allocation. A bad economy usually means lower profits for companies, which in turn means lower stock prices for some firms.Investors can also compare country GDP growth rates to decide where the best opportunities are for foreign investment. Most investors like to purchase shares of companies that are in rapidly growing countries.http://www.cnbc.com/id/44505017
- Why is it important? This statistic is a leading indicator of consumer spending-consumers are more inclined to spend money when they are feeling confident about their financial and employment prospects.http://www.aaii.com/journal/article/the-top-10-economic-indicators-what-to-watch-and-why.touch
- PMI is a very important sentiment reading, not only for manufacturing, but also the economy as a whole. Although U.S. manufacturing is not the huge component of total gross domestic product (GDP) that it once was, this industry is still where recessions tend to begin and end. For this reason, the PMI is very closely watched, setting the tone for the upcoming month and other indicator releases.The magic number for the PMI is 50. A reading of 50 or higher generally indicates that the industry is expanding. If manufacturing is expanding, the general economy should be doing likewise. As such, it is considered a good indicator of future GDP levels. Many economists will adjust their GDP estimates after reading the PMI report. Another useful figure to remember is 42. An index level higher than 42%, over time, is considered the benchmark for economic (GDP) expansion. The different levels between 42 and 50 speak to the strength of that expansion. If the number falls below 42%, recession could be just around the corner. (To learn more, read Recession: What Does It Mean To Investors?)As with many other indicators, the rate of change from month to month is vital. A reading of 51 (expanding manufacturing industry) coming after a month with a reading of 56 would not be seen favorably by the markets, especially if the economy had been showing solid growth previously. The PMI can be considered a hybrid indicator in that is has actual data elements but also a confidence element, like the Consumer Confidence Index. Answers are subjective, and may not always relate to events as much as perceptions. Both can have value to investors looking to get a sense of actual experiences as well as see the PMI index level itself.Bond markets may look more intently at the growth in supplier deliveries and prices paid areas of the report, as these have been historical pivot points for inflationary concerns. Bond markets will usually move in advance of an anticipated interest rate move, sending yields lower if rate cuts are expected and vice versa. (For more insight, see Get Acquainted With Bond Price/Yield Duo.)http://www.investopedia.com/university/releases/napm.asp
- “A lagging indicator is one that follows an event. Back to our traffic light example: the amber light is a lagging indicator for the green light because amber trails green. The importance of a lagging indicator is its ability to confirm that a pattern is occurring or about to occur. Unemployment is one of the most popular lagging indicators. If the unemployment rate is rising, it indicates that the economy has been doing poorly. “Directly quoted from: “http://www.investopedia.com/ask/answers/177.asp”
- An economic measure of a positive balance of trade, where a country's exports exceeds its imports. A trade surplus represents a net inflow of domestic currency from foreign markets, and is the opposite of a trade deficit, which would represent a net outflow. http://www.investopedia.com/terms/t/trade-surplus.asp