Economic Terms

The Purchasing Managers Index (PMI) is a vital economic indicator that evaluates the health of a nation’s manufacturing and service sectors. Investors, traders, and policymakers rely on the PMI to understand business conditions, predict…
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The Producer Price Index (PPI) is a critical economic indicator that tracks changes in wholesale prices received by producers for goods and services. It serves as a leading indicator of inflation, offering insights into sectoral health,…
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The Retail Sales Report : is a monthly measure of the total sales of goods and services in retail stores in the United States. The Retail Sales Report is considered a key indicator of consumer spending, which makes up a significant portion…
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The Empire State Manufacturing Index: The Empire State Manufacturing Index is a monthly survey conducted by the Federal Reserve Bank of New York. It assesses the health and performance of the manufacturing sector in the state of New York…
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Borrowers issue bonds to raise money from investors willing to lend funds for a specific period. When you buy a bond, you are lending money to the issuing entity, which can be a government, a local authority, or a company. In return, the…
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A simple definition of a depression is a widespread and prolonged economic downturn. Some define a depression as a scenario where real Gross Domestic Product (GDP) falls by more than 10%. Another way to distinguish it from a recession is…
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A recession is generally defined as two consecutive quarters of negative growth in Gross Domestic Product (GDP). Since GDP measures the overall level of goods and services produced in a given period, it is considered the most comprehensive…
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Interest rate is: the amount imposed by the lender on the borrower for the use of the borrowed principal, and it is typically expressed as a percentage of the borrowed amount. This percentage usually indicates the amount paid each year…
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The Consumer Price Index (CPI) : is a monthly measure of changes in the prices paid by consumers for goods and services. It is an index that tracks the price changes of a representative basket of goods and services typically purchased by…
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Gross Domestic Product (GDP) : is the total value of goods and services produced in a country during a specific period of time. It is one of the most comprehensive economic statistics and must be closely monitored…
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