Production

Durable Goods:

Durable Goods orders reflect the new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods. Orders for durable goods show how busy factories will be in the months to come, as manufacturers work to fill those orders. The data not only provide insights to demand for things like refrigerators and cars, but also business investment going forward.

This series comes out monthly.

Capacity Utilization:

Capacity utilization is the rate that measures the operating capacity of resources in the economy. Capacity rates of 85% or higher are seen as inflationary. Sector readings above 100% are indicative of working at excess capacity, via overtime or additional shifts. Industries are forced to work near full capacity only when there is significant demand for output. This is why we see capacity utilization rates rise during economic expansions and fall in recessions. High capacity utilization rates signal possible inflation and push bond prices lower, and vice versa.

This series comes out monthly.

Industrial Production:

Industrial Production is the measure of physical output in factories, mines and utilities. Activity in manufacturing accounts for about 85% of total industrial production with the remainder of output from utilities and services. Strength in industrial production reflects strength in the economy, which has implications for interest rates.

This series comes out monthly.

Consumer

Retail Sales:

Consumer spending accounts for two-thirds of the economy. It is therefore a critical component of economic growth with significant meaning for investors.

Retail sales details the dollar value of purchases made at retail stores. Auto sales account for approximately 20% of retail sales. It is released monthly.

Consumer Confidence (Sentiment):

A survey of consumer attitudes concerning both the present situation as well as expectations regarding economic conditions. High and rising consumer confidence can have implications for the bond market because it may indicate a faster pace of economic activity in the months ahead. A drop in confidence will trigger the opposite bond market response. Widely followed surveys are conducted by The Conference Board and the University of Michigan and released monthly.

Personal Consumption Expenditures:

The consumption (outlays) part of this report is broken down by type-durables, nondurables and services. Consumer spending accounts for two-thirds of the economy, therefore trends have implications for the financial markets.

This series is released monthly.

Personal Income:

Personal income is an indicator of future consumer demand. Rising income may bring greater spending, just as lower income may mean lower expenditures. It represents the total income that consumers receive, including most of the national income earned in the production of gross domestic product, including wages, salaries and other income sources, including rental income, government subsidy payments, interest income, and dividend income. Disposable personal income is personal income less tax and non-tax payments.

This series is released monthly.

Employment

Employment Report:

Released by the Department of Labor, this government survey measures both unemployment levels and nonfarm payrolls and is known to prompt significant market reaction. The employment report is actually two separate reports, which are the results of two separate surveys: a household survey and an establishment survey. The household survey is a survey of roughly 60,000 households. This survey produces the unemployment rate. The establishment survey is a survey of 375,000 businesses. This survey produces the nonfarm payrolls, average workweek, and average hourly earnings figures, to name a few.

When the businesses are doing well, employers are more likely to take on new employees. When times are difficult, employers lay off employees.

US Nonfarm Payrolls:

Nonfarm payroll employment counts the number of paid employees working part-time or full-time in the nation's business and government establishments. The number represents the month over month change.

Nonfarm payrolls are released monthly and come out the first Friday of the month for the previous month.

US Unemployment Rate:

This is the number of unemployed persons as a percent of the labor force.

The unemployment rate is released monthly and come out the first Friday of the month for the previous month.

Initial Jobless Claims:

The actual number of people who have filed for Unemployment benefits for the first time. To qualify for benefits, those who apply must

1. Meet the requirements of time worked during a 1 year period (full time or not)
2. Become unemployed through no fault of your own (cannot be fired )
3. Must be able to work; no physical or mental holdbacks.
4. Must be available for work.
5. Must be actively seeking work.

Housing

Existing Home Sales:

The number of previously constructed homes with a closed sale during the month. Existing homes (also known as home resales) are a larger share of the market than new homes and indicate housing market trends. It accounts for about 85% of all houses sold. Existing home sales usually lead to increased consumer spending on items to decorate and equip the house.

Existing Home Sales are released monthly and come out on the last week of the month with the previous month numbers.

New Home Sales:

The number of newly constructed homes with a committed sale during the month. The level of new homes sales indicates housing market trends. From construction to sale of a new home, jobs are created and revenues flow through the economy.

New Home Sales are released monthly and come out on the last week of the month with the previous month numbers.

Housing Starts:

Category of residential construction monitored by the Department of Commerce. Housing Starts represent the start of construction of a house or apartment building, which means the digging of the foundation. Other categories are housing permits, housing completions, and new home sales. In the aggregate, residential construction accounts for roughly 3% of Gross Domestic Product.

Housing Starts are released monthly and come out on the 3rd week of the month with the previous month numbers.

Affordability Index:

Standard established by the National Association of Realtors (NAR) to gauge the financial ability of consumers to buy a home. A reading of 100 means a family earning the national median family income (reported by the Census Bureau) can qualify for a mortgage on a typical median-priced existing single-family home.

Inflation/deflation

Consumer Price Index:

The CPI measures the change in the cost of a representative basket of goods and services bought by the typical consumer, such as food, energy, housing, clothing, transportation, medical care, entertainment and education, . The "core" CPI excludes the often-volatile food and energy sectors and gives a clearer picture of the underlying inflation trend. Also used as the cost of living benchmark to adjust Social Security payments as well as other scheduled payments. Inflation is an important indicator for the financial markets because of the potential impact on interest rates.

The index is released monthly.

Producer Price Index:

The PPI measures the change in wholesale prices. The index is broken down into components by commodity, industry sector and stage of processing. The PPI tracks prices of foods, metals, lumber, oil and gas as well and many other commodities. The PPI is considered a precursor to changes in CPI, as price pressure at the wholesale level may be passed on to the retail level.

The index is released monthly.

Journal of Commerce Index:

The JOC-ECRI index anticipates trends in companies pricing power and is thought to be a leading indicator of corporate profits and consumer price changes. The index tracks 18 industrial materials comprised of the following: cotton, burlap, polyester, steel, copper, aluminum, zinc, lead, tin , nickel, hides, rubber, tallow, plywood, red oak, benzene, crude oil and ethylene.

The index is calculated daily.