Key Economic Indicators: How Data Can Influence Financial Markets
A guide to the key economic reports that shape markets, policy decisions and your portfolio’s performance.
Key Takeaways
Economic data sometimes moves markets, shaping how investors view stocks, bonds and other assets.
Policymakers consider economic data when they set interest rates and make other policy decisions that can impact economic growth and your finances.
Investors watch jobs, inflation and spending reports to understand the market backdrop and keep their investment plans on track.
Critical economic data releases from agencies like the U.S. Bureau of Labor Statistics, the Census Bureau and the Bureau of Economic Analysis help analysts, investors and policymakers make informed decisions. Without them, as the 2025 U.S. government shutdown showed, the insight needed to make these decisions is limited.
Not all key data comes from the federal government — private organizations also publish widely followed reports that provide valuable insight into business conditions and employment trends.
Why are these reports so important? Unemployment numbers, inflation measures and retail sales figures are more than headlines. They serve as important signals about the health of the U.S. economy.
We’ll break down the most important reports, explain what they measure and discuss why they matter to financial markets.
Consumer Reports
Consumer spending drives a large share of U.S. economic activity, so reports in this category help economists and investors gauge household confidence and buying behavior. These indicators often reveal early signs of shifts in demand that ripple through the broader economy.
U.S. Retail Sales
Frequency: Monthly
Owner: Census Bureau.What Is It?
The Census Bureau publishes the U.S. Retail Sales report, which tracks monthly sales at stores, online retailers and food services to show consumer spending trends.Why Is U.S. Retail Sales Data Important for Financial Markets?
The U.S. Retail Sales report provides an indication of whether consumers are spending more or less. This is important because consumption accounts for 70% of the U.S. economy.U.S. Consumer Confidence
Frequency: Monthly.
Owner: The Conference Board.What Is It?
The Conference Board publishes the Consumer Confidence Index (CCI), which measures consumers' optimism or pessimism about business conditions and the labor market.Why Is Consumer Confidence Important for Financial Markets?
The Consumer Confidence Index offers insight into consumers’ mindsets and how labor and business conditions might impact their consumption.U.S. Consumer Sentiment
Frequency: Monthly.
Owner: University of Michigan.What Is It?
The University of Michigan’s U.S. Consumer Sentiment survey measures consumer expectations regarding the overall economy and their personal finances.Why Is Consumer Sentiment Important for Financial Markets?
The Consumer Sentiment Index matters because confidence levels can predict near-term consumer spending trends.U.S. Personal Income and Outlays
Frequency: Monthly.
Owner: Bureau of Economic Analysis.What Is It?
The Personal Income and Outlays report from the Bureau of Economic Analysis includes personal consumption expenditures (PCE), which measure the value of goods and services purchased by U.S. residents.Why Is Personal Income and Outlays Data Important for Financial Markets?
Personal Income and Outlays data shows whether consumer spending is rising or falling, offering insight into economic momentum and influencing monetary policy decisions.
Inflation Reports
Inflation measures track changes in prices for goods and services, providing insight into purchasing power and cost pressures. Because inflation influences interest rates and monetary policy, financial markets closely watch these reports.
U.S. Consumer Price Index
Frequency: Monthly.
Owner: Bureau of Labor Statistics.
What Is It?
The Bureau of Labor Statistics produces the Consumer Price Index (CPI), which measures the prices of a basket of specific goods and services bought by U.S. urban consumers.Why Is the Consumer Price Index Important for Financial Markets?
The Consumer Price Index is the broadest measure of U.S. consumer inflation, providing insight into how rising or falling prices may affect the economy and interest rates.U.S. Producer Price Index
Frequency: Monthly.
Owner: Bureau of Labor Statistics.
What Is It?
The Producer Price Index (PPI), from the Bureau of Labor Statistics, tracks the wholesale prices of goods produced in virtually every industry in the U.S.Why Is the Producer Price Index Important for Financial Markets?
The Producer Price Index is considered a leading indicator of potential consumer inflation because it tracks prices of industrial output that businesses might pass on to consumers.U.S. Core Personal Consumption Expenditure Price Index
Frequency: Monthly.
Owner: Bureau of Economic Analysis.
What Is It?
The Core PCE Price Index is part of the Personal Income and Outlays report. This index from the Bureau of Economic Analysis measures monthly changes in prices for goods and services purchased by U.S. consumers, excluding food and energy.Why Is the Personal Consumption Expenditure Price Index Important for Financial Markets?
The Federal Reserve (Fed) uses the Core PCE Price Index as its preferred gauge of underlying inflation when setting monetary policy and determining the direction of interest rates.
Employment Reports
Jobs data provides a direct view of labor market health, wage trends and overall economic momentum. Strong or weak employment readings can shape expectations for consumer spending and central bank decisions.
Current Employment Statistics
Frequency: Monthly.
Owner: Bureau of Labor Statistics.
What Is It?
Employment statistics from the Bureau of Labor Statistics include measures of nonfarm payrolls representing the total number of workers employed by U.S. businesses. The data also includes the overall U.S. unemployment rate, based on a survey of U.S. households.Why Is Unemployment Claims Data Important for Financial Markets?
Changes in the payroll figures indicate the number of jobs employers added or shed. Changes in the unemployment rate can offer further insight into the economy's health. The Fed considers both when evaluating monetary policy.Unemployment Claims
Frequency: Weekly.
Owner: Department of Labor.
What Is It?
The Unemployment Claims report from the Department of Labor tracks weekly filings for unemployment benefits, including both initial and continuing claims.Why Is Unemployment Claims Data Important for Financial Markets?
The Unemployment Claims report helps economists and investors assess labor market trends. Rising or falling claims can signal shifts in employment conditions and broader economic momentum.ADP National Employment Report
Frequency: Monthly.
Owner: ADP.
What Is It?
The ADP National Employment Report, published by ADP — a leading payroll and human resources services company — tracks monthly changes in private-sector payrolls, offering an early look at labor market conditions.Why Is ADP’s National Employment Report Important for Financial Markets?
The ADP National Employment Report gives economists and investors an additional data point to gauge employment trends and anticipate the government’s official jobs report.
Production/Output Reports
Reports in this category measure how much businesses are producing and how efficiently they use resources. These indicators highlight industrial strength, capacity constraints and potential turning points in economic growth.
ISM Manufacturing Purchasing Managers’ Index
Frequency: Monthly.
Owner: Institute for Supply Management.
What Is It?
The monthly Purchasing Managers Index (PMI) measures the health of the manufacturing and service sectors. The manufacturing index reflects a survey of senior manufacturing executives inquiring about orders, employment, inventories and deliveries. The Institute for Supply Management (ISM) conducts the survey.Why Is ISM’s Manufacturing PMI Important for Financial Markets?
The manufacturing PMI provides insight into whether the manufacturing sector is expanding or contracting, with implications for the broader economy. A PMI of 50 or higher exhibits expansion; 50 or lower exhibits contraction.ISM Services Purchasing Managers Index
Frequency: Monthly.
Owner: Institute for Supply Management.
What Is It?
The monthly PMI measures the health of the manufacturing and service sectors. The services index reflects a survey of executives in service-based industries such as finance, health care, retail and technology. The Institute for Supply Management (ISM) conducts the survey.Why Is ISM’s Services PMI Important for Financial Markets?
Services account for about two-thirds of the U.S. economy. A services PMI reading of 50 or more indicates that most of the economy is expanding; a reading of 50 or less indicates contraction.Gross Domestic Product
Frequency: Quarterly.
Owner: Bureau of Economic Analysis.
What Is It?
Gross domestic product (GDP) measures the entire value of goods and services produced in the U.S. The Bureau of Economic Analysis produces the GDP report.Why Is Gross Domestic Product Important for Financial Markets?
Economists and investors focus on real gross domestic product, which adjusts for inflation. Changes in quarter-to-quarter or year-to-year real GDP can help assess the direction of the nation’s economy.U.S. Factory Orders
Frequency: Monthly.
Owner: Census Bureau.
What Is It?
The Census Bureau’s monthly report on factory orders tracks new orders for both durable and non-durable manufactured goods. The report includes durable goods like cars, appliances and machinery, as well as non-durable goods such as food, clothing and chemicals.Why Are Factory Orders Important for Financial Markets?
Changes in factory orders can indicate expansion or deterioration in the broader economy.U.S. Industrial Production and Capacity Utilization
Frequency: Monthly.
Owner: Federal Reserve.
What Is It?
The Federal Reserve’s monthly Industrial Production and Capacity Utilization report tracks output across manufacturing, mining and utilities, along with how fully factories are using their capacity.Why Is Industrial Production Data Important for Financial Markets?
The Industrial Production and Capacity Utilization report is important because changes in output can provide an indication of the direction of the broader economy. Generally, the closer industries operate to full capacity, the healthier the economy.
Housing Reports
Housing is a major driver of economic activity, from construction to consumer spending. Reports in this category track home sales, prices and building trends, offering clues about demand, affordability and the impact of interest rates.
New Residential Construction
Frequency: Monthly.
Owner: Census Bureau.
What Is It?
The U.S. Census Bureau’s monthly New Residential Construction report tracks housing activity by reporting building permits, housing starts and completions for single-family and multi-family homes.Why Is New Residential Construction Important for Financial Markets?
Housing accounts for about one-sixth of the U.S. economy. The New Residential Construction report is a reading on the pace of new construction and provides insight into the health of the broader economy.U.S. Existing Home Sales
Frequency: Monthly.
Owner: National Association of Realtors.
What Is It?
The Existing Home Sales report tracks monthly sales of previously owned homes across the U.S. The National Association of Realtors publishes it to show housing demand and market conditions.Why Is Existing Homes Data Important for Financial Markets?
The Existing Home Sales report matters because existing homes make up most of the U.S. housing market. Trends in these sales, like those in new construction, reveal shifts in consumer demand, economic strength and the impact of interest rates.U.S. S&P Case-Shiller Home Price Index
Frequency: Monthly.
Owner: Standard & Poor’s.
What Is It?
The S&P Case-Shiller Home Price Index consists of three measures of single-family home values: a national index, a 10-city composite and a 20-city composite.Why Is the S&P Case-Shiller Home Price Index Important for Financial Markets?
The S&P Case-Shiller Home Price Index provides detailed price data that reveal supply and demand trends in the housing market, offering insight into consumer wealth and broader economic conditions.
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The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.