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Business Sector Indicators

Industrial Production is paid a particular attention to as it shows the whole development of the economics. On the basis of the collected data the future of a state’s financial policies is planned. When the role of this indicator increases it proves that the economics is growing stronger what predetermines the growth of goods competiveness on the global market. The growth of competiveness leads to the trading balance growth and to the monetary rate’s rise. What forms the index of this indicator? It is the information about the produced goods, community facilities and extractive industry.

Capacity Utilization presents the correlation between the produced goods and the total productivity of the industrial sectors. This indicator plays an important role in difficult situations as it is closely connected with the business cycle. When the capacity utilization shows its high rate it can serve as a basis for the central bank policies. The highest index is regarded to be 85%. In case it is higher than that it means that the inflation rate is rising. On the other hand, the same process can encourage the increase in the interest rate and exchange rate adjustments. If the indicator is lower it points to the weak state of economics and the possibility of drops in rates.

Factory Orders describe the needs of the industrial sector for durable goods. The higher the index the bigger is the need and the faster runs the industry. In case the index is low it will tell negatively on the productions. On account of this there is a direct dependence between the exchange rate movement and the changes in factory orders indicator.

Durable Goods Order is an order for the goods which can be used for a period of several months or years, for example, such goods as a refrigerator, a car and so on. The indicator shows the statistic data on the orders for particular kind of goods. The statistic data involves the orders and contract execution. The orders are divided into 4 groups according to the sectors: metalwork, electrical facilities, transport, engineering.

Business Inventories reflect the volumes of the produced goods stored in warehouses. The higher the index, the lower the sale. The consequence of this phenomenon is that the warehouses will be full of unsold goods which will lead to the exchange rate drop. The data collection is carried out on the assumption of the reports by the producers in wholesale and retail.

Wholesale Inventories singles out the correlation between wholesale and retail trades. If the indicator is growing it evidences about economic recession which can seriously impact the exchange rate figures.

Productivity and Costs discloses the dependence of the produced goods on time and costs. This index is applied to when predicting the increases in production volumes and inflation.