Key economic indicators
Global investors should monitor economic indicators to understand the condition of the global economy (ACWI) (VTI). Indicators are important because they shed light on a country’s economic health. They help you identify short-term economic trends and changes in market sentiments.
Important global indicators released last week include the following:
- US (SPY) Manufacturing PMI (Purchasing Managers’ Index)
- France (EWQ) Manufacturing PMI
- Germany (EWG) Manufacturing PMI
- Eurozone Manufacturing PMI
- China (MCHI) (FXI) Manufacturing PMI
- Japan (EWJ) Manufacturing PMI
- Canada (EWC) Manufacturing PMI
- India (INDA) Manufacturing PMI
- US crude oil inventories
- US (QQQ) (SPXL) non-farm payroll
- US ADP employment change
Importance of manufacturing PMI
Monthly manufacturing PMI reports show manufacturing activity, output, new orders, export orders, and employment numbers. They help us assess the growth and trends in world manufacturing activity. Many policymakers use manufacturing PMI reports to make important policy decisions that could affect the economy at large.
In this series, we’ll also be looking at the US jobs report for December 2016. Let’s start by analyzing the performance of the US manufacturing PMI for December 2016.