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Economic indicators - F

List of indicators - F:

  • Factory orders
  • Federal budget
  • Federal Government Finances
  • Federal Reserve Policy Disclosures
  • Financial Account Balance
  • FOMC Minutes and Transcripts
  • Foreign Trade

Factory Orders

Long-term, durable goods reports and nondurable goods form these orders. The sole new components, which are nondurables, make the report predictable. The items rising at a stable monthly rate such as food and tobacco are included in the nondurable report. That is why it can be predicted more accurately than the reports of durable orders. The market not only finds out the values of the nondurables but also revises the important changes in the data of durable orders. Now durable goods orders share 54% of total number of orders. The factory inventories report is a monthly overview on the inventory of the factory and comes last for this report. A week later is the time for wholesale inventory and retail inventory gets ready in a few more days. As far as inventory go, values do not play a considerable role for the market. They are mostly used to improve the inventories projection for the quarterly GDP report.

Federal Government Finances

What it is: This indicator does not take seasonal adjustments into consideration. However, it corresponds to the monthly budget deficit or surplus. Why we care: The US treasury securities issued for debt financing are supplied by the interest rates that can be affected by the rising pressure from the budget deficit. Several factors can affect rates considerably like the policy of Federal Reserve, inflation, and dollar cost. Finally, higher interest rates can cause the reduction of economic growth.

Federal Reserve Policy Disclosures

What it is: A Federal Reserve Board announcement concerning any changes in the monetary policy. It mostly includes federal funds rate changes or depository institutions interest rate at which the different depositary institutions get the balances lent from the Federal Reserve suddenly. The announcement is usually carried out with the statement describing the motives of the following Federal Reserve's rates and the outlook of FOMC on the risks of inflation and economic growth.

Why we care: The federal funds rate is usually lowered when the Federal Reserve is planning to decrease overall interest rates and give a stimulus for the economy to grow, and it is raised when the economy is supposed to grow excessively and is threaten by the risk of inflation. The accompanying statement is thought to be important indicator of the monetary policy direction by the monetary policy analysts and "watchers" of Federal Reserve and the immediate actions yielded by Treasury just after its public presentation reflect this statement interpretation. The Federal Reserve funds rate decision is often estimated being at the same level as the report.

Financial Account Balance

What it is: An indicator of U.S. assets, which are outside the country, and assets from overseas markets in the United States.

Why we care: It presents the U.S. Treasury securities that can influence the demand of the market, which are held by the investors from abroad in percents.

FOMC Minutes and Transcripts

What it is: The amount of minutes passed since the latest FOMC meeting was held where the panel discussions were summarized and voted. Additionally, it includes the description of the economic situation relative to the moment carried out.

Why we care: It lets us have an outlook on the opinion of FOMC and explains policy changes. It includes a better explanation of FOMC opinion than it is done in the announcement that is carried out after the FOMC meeting that modifies target Federal Reserve funds rate. (Refer to FOMC Policy Announcements)

Foreign Trade (International Trade Balance)

What it is: Billions of dollars expression of the U.S. imported and exported goods and services spread.

Why we care: These values and its divergence from official figures or forecasts may affect the values of GDP growth taken for the present quarter.