Lesson 4 of 4 · 5 min read
Economic figures
Inflation, jobs, GDP — the figures the market keeps an eye on.
Inflation (CPI)
The Consumer Price Index measures how fast prices are rising. Too high → the central bank raises rates. It's perhaps the market's most watched figure.
Employment
Jobs figures (like the US 'jobs report') show the strength of the economy. Strong = good, but too strong can fuel rate fears ('good news is bad news').
GDP & sentiment
GDP measures the total economy; consumer confidence measures the mood. Together they sketch whether we're heading toward growth or recession.
Remember this
- CPI measures inflation and is perhaps the market's most watched figure.
- Jobs figures show economic strength, but too strong can cause rate fears ('good news is bad news').
- GDP measures the total economy, sentiment measures the mood.
- Together these figures sketch whether we're heading toward growth or recession.
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