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10 20 2015 | by Victor Xing | Economics

What are some helpful economic indicators?

Goldman Sachs Financial Conditions Index (GS FCI) is an aggregated measure of borrowing cost, equity wealth effect, dollar valuation, etc.  Tighter financial conditions today constraint future economic growth, and easier financial conditions fuel future borrowing (consumption and investment) and boosts exports.

FCI has many useful applications

Economic indicators: Goldman Sachs Financial Conditions Index
Economic indicators: Goldman Sachs Financial Conditions Index

Inflation – the core central bank policy objective shared by many global central banks

PCE and Core PCE vs. Core CPI and OER

Economic indicators: personal consumption expenditure
Economic indicators: personal consumption expenditure

Federal Reserve balance sheet, Bank excess reserves, and monetary base are useful gauges in effects of central bank policies

Economic indicators: Federal Reserve balance sheet and monetary base
Economic indicators: Federal Reserve balance sheet and monetary base

U.S. wage growth (or as the FED would put it, labor compensation):

Economic indicators: ECI and AHE
ECI and AHE

There are many more, but they are usually better covered by financial reporters (for example, the Payrolls data, ISM Manufacturing and Non-manufacturing indices, Industrial Production, Housing Starts…)

Next article10 19 2015 | by Victor Xing | Capital Markets

Which part of the Treasury curve is most important to bond investors?