📊 Common Macroeconomic Indicators Family Pack (Plain Explanation Version)
1️⃣ GDP (Gross Domestic Product)
Economic Size and Growth ( Measuring the "bulk" and "speed" of the economy )
What is it? The market value of all final goods and services produced by a country over a certain period (usually a year or a quarter). You can think of it as the "total price" of all the goods and services newly created by that country during the year.
What can be seen? The speed at which the country is "making money," and whether the economy is growing.
For example: If GDP is rising rapidly, it is like the company's revenue surging; if GDP is negative, it indicates that the economy is in recession.
China Data Query Official Website: National Bureau of Statistics (National Bureau of Statistics of China)
2️⃣ CPI (Consumer Price Index)
Price levels and inflation ( measure whether "money" is valuable or not )
What is it? If GDP is "how much the cake has grown", CPI measures "whether the money to buy the cake has depreciated". It reflects the degree of inflation or deflation by tracking the average price changes of a basket of everyday goods (such as food, clothing, and rent). An increase in CPI means that prices are generally rising, and the purchasing power of money has decreased, which is mainly what we refer to as **"inflation"**.
What can be seen? Whether inflation is severe and whether the cost of living for ordinary people has increased. It relates to everyone's cost of living. When the central bank formulates monetary policy (such as whether to raise or lower interest rates), the CPI is a key reference. Countries generally set a moderate inflation target (such as around 3% in China).
In a nutshell: Rapid CPI increase = things are getting more expensive = money is becoming less valuable.
China Data Query Official Website: National Bureau of Statistics (National Bureau of Statistics of China)
3️⃣ PPI (Producer Price Index)
Producer Price Index (PPI)
What is it? The price changes of raw materials and semi-finished products purchased by enterprises. PPI measures the price changes of industrial products when they are first "ex-factory", reflecting the cost pressures on the production side. It can be understood as the "upstream" of CPI. If the prices of raw materials (such as steel and coal) produced by factories rise (PPI rises), then these cost pressures are likely to be transmitted to the goods we ultimately consume in a few months, leading to an increase in CPI.
What can be seen? Have upstream costs increased, and will inflationary pressures be transmitted to consumers? PPI reflects the profitability of enterprises, and a prolonged low PPI usually indicates that businesses are struggling and industrial demand is weak.
Understanding the technique: If PPI rises, CPI may follow; if PPI falls, corporate pressure decreases.
China Data Query Official Website: National Bureau of Statistics (National Bureau of Statistics of China)
4️⃣ PMI (Purchasing Managers' Index)
What is it? By conducting surveys among purchasing managers in the manufacturing/service sectors, we understand their views on orders, inventory, production, etc. This is a very important leading indicator. The PMI index has 50% as the dividing line between expansion and contraction.
What can be seen? The confidence of enterprises in the economy, is it expanding or contracting?
Value reference: Above 50 = expansion, below 50 = contraction.
China Data Inquiry Official Website: National Bureau of Statistics (National Bureau of Statistics of China)
5️⃣ Unemployment Rate
The "social temperature" of the economy
What is it? The proportion of people who want to work but cannot find a job in the total labor force. In China, the most commonly cited official data is the "urban survey unemployment rate."
What can be seen? Whether the economy is developing healthily, whether companies are laying off employees. A low unemployment rate indicates a vibrant economy and social stability. A high unemployment rate may cause social problems and indicate serious issues in the economy.
In summary: High unemployment rate = weak economy; Low unemployment rate = hot job market.
China Data Query Official Website: National Bureau of Statistics (National Bureau of Statistics of China)
6️⃣ Interest Rate
What is it? It usually refers to the central bank's benchmark interest rate, such as the Federal Funds Rate of the Federal Reserve. Interest rates can be seen as the "price of money." When you save money, the bank pays you interest, which is the return on your lent funds; when you borrow, you pay the bank interest, which is the cost of using the funds. The central bank (in China, it's the People's Bank of China, PBOC) adjusts the policy interest rates to influence the overall market interest rates, thus regulating the economy.
What can be seen? Whether the monetary policy is expansionary or contractionary will affect consumption, investment, loans, the stock market, and the cryptocurrency market. Interest rate cuts: Lower borrowing costs, encourage corporate investment and personal consumption, stimulate economic growth. Interest rate hikes: Increase borrowing costs, curb excessive investment and consumption, cool down the economy, and combat inflation. Interest rate levels also profoundly impact the stock market, bond market, exchange rates, and the real estate market.
In a nutshell: High interest rates = expensive borrowing = tight money; Low interest rates = cheap borrowing = loose money.
China Data Query Official Website: The People's Bank of China (
7️⃣ M2 (Broad Money Supply)
What is it? The total amount of money circulating in society, including cash + bank deposits, etc. The growth rate of M2 reflects the speed of the central bank "printing money" and the scale of credit expansion.
What can be seen? Has the money increased? Is the liquidity sufficient? If the M2 growth rate is too fast and far exceeds the GDP growth rate, it may trigger inflation or asset bubbles; if it is too slow, it may lead to tight market liquidity and a decline in economic vitality. It is an important tool for the central bank to regulate the macro economy.
Analogously: M2 increase = more money supply, asset prices (stocks/houses/coins) tend to rise.
8️⃣ Fiscal deficit / Government debt ratio
What is it? Government spending minus income, the larger the deficit, the more the government "burns money". Just like a family, the government also has income (mainly from taxes) and expenditures (defense, education, infrastructure, civil servant salaries, etc.). Fiscal deficit = Total government expenditure - Total government income. If expenditure is greater than income, a deficit is created. Fiscal deficit ratio = Fiscal deficit / GDP. This ratio better illustrates the problem, as it measures the scale of the deficit relative to the entire economy's size. It is internationally considered that 3% is the warning line.
What can we see? Whether the government is stimulating the economy and whether the fiscal policy is sustainable. A moderate fiscal deficit (active fiscal policy) can stimulate the economy, especially during economic downturns, as the government creates demand by increasing spending. However, a long-term excessive deficit means the government needs to borrow a large amount of money (issue national bonds) to fill the gap, which will increase the debt burden.
Simple understanding: The government owes too much money and may print money to pay off debts in the future, triggering inflation.
China Data Query Official Website: Ministry of Finance of the People's Republic of China )Ministry of Finance(
9️⃣ Real estate data (construction starts, sales volume, house price index)
What is it? Data related to construction, sales, and other aspects of the real estate industry.
It is not a single indicator, but a combination of data:
Housing Price Index: The most watched, the official will release the "Sales Price Changes of Commercial Residential Properties in 70 Large and Medium-sized Cities."
Real estate development investment: It measures how much capital has flowed into real estate construction and is an important component of fixed asset investment.
Commercial housing sales area/amount: Reflects market demand and transaction activity.
New construction/construction/completion area: reflects the condition of the supply side and the future supply of housing.
What can we see? The level of economic activity and the confidence of residents in their wealth. The rise and fall of the real estate market directly affects economic growth, financial stability, and residents' consumption capacity.
Special reminder: In economies such as China and the United States, real estate is a pillar industry and is very sensitive.
China Data Query Official Website: National Bureau of Statistics )National Bureau of Statistics of China(
🔟 Current Account / Trade Balance
What is it? The difference between a country's exports and imports. It is like a country's "balance of international payments," mainly consisting of two parts: Current Account )Current Account(: records the trade of goods and services (this is where the trade balance we often refer to exists), as well as cross-border wages, investment income, etc. Capital and Financial Account )Capital and Financial Account(: records cross-border asset transactions, such as foreign direct investment (FDI) in China and Chinese purchases of foreign stocks and bonds.
What can be seen? Whether the country is "making money" (surplus) or "burning money" (deficit).
Plain understanding: Exports greater than imports = surplus = the country earns foreign exchange.
China Data Query Official Website: General Administration of Customs ), State Administration of Foreign Exchange, SAFE (
🧠 Summary: What can these indicators reveal?
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