Glossary · 13 terms
Economic Indicators
All economic indicators terms in the EquitiesAmerica.com glossary — plain-English definitions for American investors.
Bear Market Rally(dead cat bounce)
A bear market rally is a short-term, sharp upward move in stock prices within the context of a larger, ongoing bear market — typically driven by short-covering, oversold technical conditions, or positive but ultimately temporary news — that subsequently gives way to a resumption of the broader downtrend.
Consumer Confidence Index(CCI)
The Consumer Confidence Index (CCI) is a monthly survey-based measure published by The Conference Board that assesses U.S. consumers' optimism or pessimism about current economic conditions and their expectations for the next six months, serving as a leading indicator of consumer spending and overall economic activity.
Consumer Price Index(CPI)
The Consumer Price Index (CPI) is a monthly measure published by the Bureau of Labor Statistics (BLS) that tracks the average change in prices paid by urban U.S. consumers for a fixed basket of goods and services, and it is the most widely cited gauge of retail inflation in the United States.
Federal Open Market Committee(FOMC)
The Federal Open Market Committee (FOMC) is the monetary policy-making body of the Federal Reserve System, responsible for setting the target federal funds rate and overseeing open market operations, and it meets eight times per year to assess economic conditions and adjust policy accordingly.
Gross Domestic Product(GDP)
Gross Domestic Product (GDP) is the total monetary value of all final goods and services produced within a country's borders during a specific time period, typically reported quarterly by the Bureau of Economic Analysis (BEA), and it is the broadest single measure of a nation's economic output.
Inflation Rate(price inflation)
The inflation rate is the percentage change in the general price level of goods and services in an economy over a specified period — typically measured year-over-year — and in the United States it is most commonly tracked through the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) price index.
Interest Rate(borrowing rate)
An interest rate is the cost of borrowing money, expressed as a percentage of the principal amount per unit of time — typically annually — and it represents both the price lenders charge for extending credit and the return depositors receive for saving.
Leading Economic Indicators(LEI)
Leading economic indicators are a set of statistical metrics that tend to change before the economy as a whole changes, providing advance signals of future economic activity and helping economists, policymakers, and investors anticipate turning points in the business cycle.
Non-Farm Payrolls(NFP)
Non-farm payrolls (NFP) is the monthly count of net new jobs added to the U.S. economy excluding agricultural workers, private household employees, and non-profit organization employees, published by the Bureau of Labor Statistics in the Employment Situation Summary and widely regarded as the single most market-moving U.S. economic data release.
Producer Price Index(PPI)
The Producer Price Index (PPI) is a monthly inflation measure published by the Bureau of Labor Statistics (BLS) that tracks changes in selling prices received by domestic producers for their output, covering goods, services, and construction, and it functions as a leading indicator of consumer inflation.
Purchasing Managers Index(PMI)
The Purchasing Managers Index (PMI) is a monthly survey-based diffusion index that measures the business conditions faced by purchasing managers in manufacturing and services sectors, with a reading above 50 indicating expansion and below 50 indicating contraction.
Recession(economic contraction)
A recession is a significant, widespread, and prolonged downturn in economic activity, officially declared in the United States by the National Bureau of Economic Research (NBER) based on a range of indicators including GDP, employment, industrial production, and retail sales.
Unemployment Rate(jobless rate)
The unemployment rate is the percentage of the civilian labor force that is jobless, actively seeking work, and available for employment, as measured monthly by the Bureau of Labor Statistics (BLS) through the Current Population Survey.