UK Economic Indicators Assignment Example | Topics and Well Written Essays - 4000 words

UK Economic Indicators - Assignment Example Typically, macroeconomic indicators are divided into several types according to their significance for exchange movements, as it affects the volatility of the market at the time of publication index. The overview of macroeconomic indicators Macroeconomic indicators cover economic development, point to economic growth or decline. Therefore we can say with certainty that the output of major data can lead to significant and lasting movements in exchange rates. These are important data: Nonfarm Payrolls, GDP, Industrial Production, CPI, PPI and other macroeconomic indicators. There is a calendar of economic indicators and the most important events in the life of the individual states (with specific dates or approximate time of their release). These events market is ready. Emerging expectations and forecasts of the value of an indicator can be and how it can be interpreted. The output data can lead to sharp fluctuations in exchange rates. Depending on how market participants apostrophe an d interprets a particular indicator, the rate can go as one and the other side. This movement can lead to a strengthening of an existing trend of course, its correction or the beginning of a new trend. Or that the outcome depends on several factors: market conditions, economic status of the host countries examined rates, preliminary expectations and sentiment, and, finally, the value of a specific indicator. The indicator of average earnings growth is calculated by taking into account earnings growth over the past three months (taking into account all payments that were actually made and not "accrued"). This is a good indicator of future inflation, as rising wages, if it is not offset by productivity growth is the cause of rising prices. Average earnings growth is one of the defining indicators, according to which the Bank of England determines the level of interest rates. This indicator has a significant impact on the market. The indicator of producer output prices (PPI output) is defined as a change in the level of wholesale prices of goods in the industry. It is a strong indicator of inflation that reflects the inflationary pressures on the economy by the manufacturers (the increase of prices in "output" may not affect the inflation index, as it can reduce the costs in the trade). The price of food, alcohol, tobacco and fuel (prices for these products is very variable) are not taken into account. The indicator of producer input prices (PPI input) is defined as the change in the price level for parts and semifinished products in the industry (the rise in prices may not be reflected in the inflation index, as it can reduce the costs in the manufacturing process). The indicator of retail price index determines the change in the price level in the basket of consumer goods. The indicator of inflation is the Retail Prices Index, excluding the interest payments on loans to purchase real estate (RPI-X). The retail price index is calculated by a single formula. If t he growth of rate exceeds the planned value of the index, usually the Bank of England raises interest rates. The indicator of CBI industrial trends overviews (in the form of numbers) the business sentiment of businessmen about the state of the manufacturing sector. The review has no direct connection with the real prospect of economic development. The indicator of CBI distributive trades overviews (in the form of numbers) the business sentiment regarding business trading areas. Review has no direc