UK TRADE BALANCE

The difference between the exports and imports of U.K goods. When exports are greater than imports the U.K has a trade surplus, and when imports are greater than exports it’s running a deficit. A trade surplus indicates that funds are coming into the U.K. in exchange for goods and sometimes services, these goods are purchased in sterling, and as such is seen to lead to an appreciation or rally in the value of the currency i.e. Pound Sterling. The opposite is seen with outflows. The trade balance can therefore be seen to influence moves in FX markets more then bonds and equities

UK GROSS DOMESTIC PRODUCT (GDP)

GDP is the overall output of the economy and covers both goods and services. It is the most comprehensive overall measure of economic output and shows the overall direction of the relevant economy. If the figure increases, then the economy is improving and from this the currency should strengthen. The opposite happens should GDP contract, with currencies usually weakening (in this case the dollar).

UK INDUSTRIAL PRODUCTION

Measures the increases and decreases in the volume of output produced by the Industrial secotrs of the U.K., i.e. manufacturing, mining, and utilities. Because industrial production is a measure of output volume it is unaffected by inflation, although because of seasonal fluctuations it can be affected by big swings from month to month. Furthermore, the Industrial Production of the U.K. only  makes up a small percentage of total GDP and is thus limited in the picture it gives economically speaking.

MANUFACTURING PMI

A monthly gauge of manufacturing activity and future perception. The PMI is similar to the US ISM survey, as it is based on the opinions of manufacturing companies. The recipients of the survey gauge future demand and adjust the order books accordingly. The PMI summarizes the opinions of these executives to give a picture of the future of the manufacturing sector in the U.K. It is measured in a range of 0-100, 0 being a negative outlook and 100 being the most positive indicating confidence and growth.

CONSTRUCTION PMI

A monthly gauge of activity within the construction sector. The PMI asks executives in the construction sector about the state of business and the purchasing levels at present. These managers are tasked with gauging future construction demand, and thus have to maintain/adjust orders for materials accordingly. Similar to the Manufacturing PMI this is measured in a range of 1-100

SERVICES PMI

A monthly guage of the service sector within the United Kingdom, fundamentally giving a business outlook. The survey is collated using a number of opinions of executives in transport, communications, financial Services, business services, personal services, computing and hospitality.  These managers are tasked with gauging future of the service sector, and thus have to maintain/adjust orders for materials/services accordingly. Similar to the Manufacturing PMI this is measured in a range of 1-100

UK RETAIL SALES

This is similar to the U.S. figure in that it measures the volume of change in retail sales reported by U.K. retailers. It is collated through a monthly survey of the U.K.’s largest retailers and reflects the economic prospects of the stated nation. A higher number indicates growth and confidence and a lower number shows contraction and economic pessimism as consumers generally spend less during downturns due to both lower confidence and also disposable income. The only difference between the U.K and other retail figures is that it does not have a core reading without the food and energy.

UK CONSUMER PRICE INDEX (CPI)

Consumer Price Index (CPI) assesses increases/decreases in the cost of living by measuring the amount consumers pay for a set of items. CPI serves as the main figure for inflation. An increase in CPI (Inflation) means that the pound (sterling) buys fewer goods and services lowering people’s purchasing power. Inflation is generally bad news for the economy, causing instability and in some cases hardship due to increases in the cost of living. To combat inflation interest rates need to rise and this is why the figure is closely watched.

CORE CPI

The Core CPI figure  is collated with out volatile items such as food and energy and therefore is similar to the US CPI Ex Food and Energy figure. It is considered a more balanced measure of inflation as it cannot be distorted by items such as oil and gas.

UK PRODUCER PRICE INDEX (Input)

A monthly survey that measures change in the input prices of UK manufacturers. The input cost generally entails the cost of running the business such as materials and transport. Again this figure is calculated without food and energy to give a more accurate representation the figure is known as Core Input PPI

UK PRODUCER PRICE INDEX (Output)

This monthly figure measures the changing of prices in the U.K. It fundamentally applies to goods manufactured in the U.K. An elevated level is an indication of higher costs and thus inflation but can be distorted by demand. If goods are more popular manufacturers may put prices up. There it is watched with caution

UK NATIONWIDE CONSUMER CONFIDENCE

This questions the participants on how they feel about the U.K economy and what they feel the prospects are for it in the future.  The higher the confidence the more likely consumers are to spend which drives both economic growth and dreaded inflation.

UK UNEMPLOYMENT RATE

This simply is a figure measuring the increase or the decrease in the number of people seeking employment. A lower number of unemployment means more income for the economy in general and thus consumerism usually increases. Higher unemployment shows the need for stimulus to promote economic growth such as rate cuts