| -4.8% | | -2.2% | Q4 | |
Refinancingmortgagejobs o Www n City searchw City  searche Moving in n City isearchgsearchosearcht a City e Cities osearchssearchAustralia - Housing Price Index
Definition
The data provide estimates of changes in housing prices in each of the eight capital cities of Australia along with a weighted average of the eight.
Frequency
Quarterly |
| 01/02/2012 | 02:30 | | | Purchasing Managers Index (PMI) - level | 48.8 | | 48.7 | Jan | |
Country: China - PMI Manufacturing Index
Definition
Purchasing Managers' Manufacturing Index (PMIs) is based on monthly questionnaire surveys of selected companies which provide an advance indication of what is really happening in the private sector economy by tracking changes in variables such as output, new orders, stock levels, employment and prices across the manufacturing sectors.
Why Investors Care?
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.
The Markit PMI manufacturing data give a detailed look at the manufacturing sector, how busy it is and where things are headed. Since the manufacturing sector is a major Source
of cyclical variability in the economy, this report has a big influence on the markets. And its sub-indexes provide a picture of orders, output, employment and prices.
Frequency
Monthly |
| 01/02/2012 | 07:00 | | | House Prices | -0.2% | -0.1% | -0.2% | Jan | |
| Country: UK |
| 01/02/2012 | 08:15 | | | Adjusted Real Retail Sales - y/y | 0.6% | 1.6% | 1.8% | Dec | |
Country: Switzerland - Adjusted real retail sales
Definition
These data provide a gauge for goods sold at retail outlets during the reporting period. Retail sales are a leading indicator for the Swiss economy since private consumption makes up a large portion of Swiss gross domestic product. Rising consumer spending fuels economic growth, confirms signals from consumer confidence, and may spark inflationary pressures.
Why Investors Care?
Consumer spending accounts for a large portion of the economy, so if you know what consumers are up to, you will have a pretty good idea on where the economy is headed. Needless to say, that is a big advantage for investors.
The pattern in consumer spending is often the foremost influence on stock and bond markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth.
Retail sales not only give you a sense of the big picture, but also the trends among different types of retailers. Perhaps auto sales are especially strong or apparel sales are showing exceptional weakness. These trends from the retail sales data can help you spot specific investment opportunities, without having to wait for a company's quarterly or annual report.
Frequency
Monthly |
| 01/02/2012 | 08:30 | | | SVME PMI - level | 47.3 | 51.8 | 50.7 | Jan | |
Country: Switzerland - SVME Purchasing Managers' Index
Definition
The SVME Purchasing Managers Index (PMI) tracks trends in Swiss manufacturing.
Why Investors Care?
The PMI is very sensitive to the business cycle and tends to match growth or decline in the economy as a whole. To construct the PMI the Swiss Association of Purchasing and Materials Management conducts monthly surveys of hundreds of executives on their procurement expectations for the following month. Because the amount of materials ordered by purchasing managers parallels the level of manufacturing production, the PMI is a gauge of production growth. The results are indexed with a centerline of 50; values above 50 indicate expectations of expansion and values below 50 indicate expectations of contraction for the manufacturing sector.
Frequency
Monthly |
| 01/02/2012 | 08:53 | | | Manufacturing PMI | 51.0 | 50.9 | 50.9 | Jan | |
Country: Germany
Source: Institute for Supply Management.
Raw Data Available At: ISMReport/index.cfm
Release Time: 10:00 ET on the first business day of the month for the prior month.
ISM: Institute for Supply Management
formerly NAPM: National Association of Purchasing Managers
In Brief
The ISM report is a national survey of purchasing managers which covers such indicators as new orders, production, employment, inventories, delivery times, prices, export orders, and import orders. Diffusion indexes are produced for each of these categories, with a reading over 50% indicating expansion relative to the prior month, and a sub-50% reading indicating contraction.
The total index is calculated based on a weighted average of the following five sub-indexes, with weights in parentheses: new orders (30%), production (25%), employment (20%), deliveries (15%), and inventories (10%).
The ISM is one of the first comprehensive economic releases of the month, typically preceding the employment report. Though it covers only the manufacturing sector, it can often provide accurate hints regarding the tone of subsequent releases. During periods of inflation concerns, the prices paid and vendor deliveries indexes often determine the bond market's reaction to the report.
In Depth
The Institute for Supply Management's monthly Report on Business is probably the most widely watched economic indicator produced by the private sector. There are two key reasons for the ISM's prominence. First, its longevity - the report was first produced in 1931, and after a break during World War II, it has produced continuously since 1948. Second , its leading quality - the ISM has been one of the better predictors of the business cycle over the years.
Who and What It Surveys
The ISM index is the result of a monthly survey of over 400 companies in 20 industries throughout the 50 states. The survey queries respondents on a number of monthly indicators, including orders, production, employment, inventories, delivery times, prices paid, export orders, and import orders. Respondents are asked to characterize each indicator as higher, lower, or unchanged for the month (or faster/slower in the case of delivery times). They are not asked for specific numbers - only a thumbs up or down.
Presenting the Numbers
Based on these responses, the ISM calculates diffusion indexes for each of the components. These diffusion indexes are calculated by adding half of the percentage of respondents answering "unchanged" to the percentage answering "higher" (or "slower" for deliveries). These diffusion indexes do not yield estimates of specific magnitudes of strength or weakness, but the more respondents who are indicating trends in the same direction - the better the chance that the magnitude of that move is larger.
A diffusion index of 50% is the theoretical breakeven mark - with readings above indicating strength and below indicating weakness. The ISM only provides the raw data - the Department of Commerce produces the seasonal factors which are used to provide more meaningful, seasonally adjusted indexes.
The total index is not the result of a separate question regarding general business conditions (as is the case with the Philadelphia Fed index). Instead, the index is calculated using the weighted sum of five of the subindexes. Orders account for 30% of the total; production - 25%; employment - 20%; deliveries - 15%; inventories - 10%. Prices, export orders, and import orders are not part of the total index.
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