Cheatsheet for Weekly Economic Calendar 1st August
Want to get some context on these upcoming global economic data points and understand what they mean? Raiz has you covered!
The Australian Industry Group (AIG) Manufacturing Index
This rates the relative level of business conditions in the sector. The data is based on a survey of about 200 manufacturers. A reading above 50 indicates expansion in the sector; below 50 indicates contraction.
Caixin Manufacturing PMI Purchasing Managers’ Index
This measures the performance of the manufacturing sector and is derived from a survey of private 430 industrial companies. The Manufacturing Purchasing Managers Index is based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent).
A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction, while 50 indicates no change.
RBA rate Decision
This is the monthly decision by Australia’s Central Bank to either move the key cash rate or leave it the same. The rate is currently at 1.35%, and forecast to move 0.5% higher to 1.85%.
JOLTS Job Openings
This is a survey done by the US Bureau of Labor Statistics to help measure job vacancies. It collects data from employers about their businesses’ employment, job openings, recruitment, hires and separations.
JOLTS defines Job Openings as all positions that are open (not filled) on the last business day of the month.
The Caixin China General Services PMI
This data point is sponsored by Financial Media company Caixin and compiled by international information and data analytics provider IHS Markit. It seeks to provide the most up-to-date possible indication of what is happening in the country’s growing services industry by tracking variables such as sales, employment, inventories, and prices.
It is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 companies. Survey responses reflect the change, if any, in the current month compared to the previous month based on data collected mid-month. A reading above 50 indicates expansion, while anything below that points to contraction.
Trade balance
This is the difference between what we export and what we import. It is calculated by subtracting the value of the goods and services Australia buys from overseas from the value of the goods and services we sell to other countries. A positive number (as expected this week) would be a trade balance surplus, and a negative one would be a deficit.
BoE Rate decision
This week sees the Bank of England expecting to also lift its interest rate, as we are seeing from other Global Central Banks.
RBA statement on Monetary Policy
The Statement on Monetary Policy sets out the Bank’s assessment of current economic conditions, both domestic and international, along with the outlook for Australian inflation and output growth. A number of boxes on topics of special interest are also published. The Statement is issued four times a year.
Nonfarm Payrolls
This measures the change in the number of people employed during the previous month, excluding the farming industry. Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity. This is reported on the first Friday of the month in the US before the market opens.
*sources: tradingeconomics.com and au.investing.com
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