Economic Glossary
Beige Book
A summary compiled by the Federal Reserve Bank which reports on economic conditions throughout specific areas of the USA.
Chicago PMI (Purchasing Managers Index)
A survey in Chicago giving an indication for the whole of the USA on prices, durable goods orders and inventories.
Consumer Confidence
A very unscientific measure of consumer optimism. But the market does react to it.
CPI
The Consumer Price Index is a measure of the average change in price over a year in a given basket of goods typically representing an average family. It is the main inflation statistic.
Durable Goods
These are goods that serve a function and last a reasonable length of time. Typically washing machines, televisions etc
FOMC
The Federal Open Market Committee is made up of twelve presidents or governors from the various Reserve Banks in the USA. They meet regularly to decide, amongst other things, what US interest rates should be.
GDP
Gross Domestic Product is the total value of all goods and services produced within a country.
GNP
Gross National Product is the same as GDP plus all income generated from overseas investments and companies located abroad.
G7
G stands for group. G7 is the Group of 7. These are the 7 leading industrial nations of the world : USA, UK, Japan, France, Germany, Canada and Italy.
G10
G stands for group. G10 is the Group of 10. These are the 10 leading industrial nations of the world : USA, UK, Japan, France, Germany, Canada, Italy, Sweden, Netherlands and Belgium.
Housing Starts
The number of houses which have started to be built.
Initial Jobless Claims
The weekly change in unemployment.
Leading Indicators
A predictable amalgamation of other key economic figures.
Non-Farm Payroll
Generally released on the first Friday of the month, this figure is the monthly number of jobs created or lost in the non farming sector. This is regarded as the most important economic statistic, and a wildly different figure from that expected can cause financial markets to move very quickly.
Personal Income
This is an indication of the average salary.
Personal Consumption
The average amount spent on goods and services.
RPI
The Retail Price Index is a now somewhat obsolete statistic for UK inflation.
