Economic data – also known as economic indicators – are figures and reports, published at regular intervals, that show how an economy is performing: from growth and employment to prices and business sentiment. They are released by statistical agencies, research institutes, industry associations and central banks according to a published calendar, and they form the backbone of fundamental analysis.
Economic data move currencies and CFD markets mainly because they shape expectations about interest rates. Strong growth or rising inflation makes higher rates more likely, which tends to support a currency, while weak figures point the other way. Stock indices, bonds and commodities react as well. What matters most is the surprise: prices respond to the difference between the actual figure and the consensus forecast, often within seconds of the release.
This section explains a selection of important indicators and concepts, without claiming to be complete: gross domestic product, inflation and deflation, the ifo and ISM business surveys, the US Federal Reserve's FOMC and Beige Book, and the high and low interest rate policies of central banks.