Written by: Sophie May
Here are some general economic reports which have a strong influence on national and international economies. Binary options traders should keep up-to-date on the following data.
Gross Domestic Product (GDP)
This figure is the total sum of all goods and services which are produced by a country. The GDP is therefore a very useful indicator of economic output, showing the pace at which that country’s economy is shrinking or growing. Consumer spending, business and residential investments, as well as inflation indexes, all contribute to the GDP, and in turn this dictates how various investments will perform.
IFO Business Climate in Industry & Trade
This monthly index measures the business climate in Germany and is widely considered to be an early indicator for economic development in the country. The IFO Institute surveys around 7,000 enterprises in the manufacturing, construction, retail and wholesale for their take on the current business situation and their expectations for the next six months. This has a wide influence because Germany’s economy is the largest in the EU.
Leading Indicators
A leading indicator is a measurable economic factor which typically changes ahead of a particular economic trend, as so is a good indicator of future economic patterns. The index of leading economic indicators is useful for foreseeing potential turning points in the economy such as recessions and recoveries, but should not be relied upon for accurate predictions.
Money Supply
The money supply is the total stock of currency and other liquid instruments in a country’s economy at any given time. It is a good indicator of the current monetary policy as well as future economic activity and inflationary pressures.
E.U. Retail Sales
Retail sales reports reveal the value of all retail sales after inflation for a country or region. The release that covers the entire E.U is usually made about 35 days after the end of each month, but will tend not to have as much of an impact as the individual retail sales reports from Germany and France, which are released first. These are definitely important data releases to keep abreast of as retail sales make most of a country or regions economic activity. A higher than expected figure is good for the euro.