To help you talk to your clients, we've identified a few key economic and market indicators to help assess the current economic health and trend.
Updated monthly to capture previous quarter-end values
Source: Refinitiv Datastream, Russell Investments, as of December 31, 2022. Russell Investments’ Economic Indicators Dashboard charts several key indicators to help investors assess economic and market trends.
Economic Indicators Dashboard definitions
|Market Indicators||Economic Indicators|
|HOME PRICES (Index value) – Teranet - National Bank House Price : Composite 11, Index. The index is estimated by tracking the observed or registered home prices over time.||CONSUMER SENTIMENT (Index level) – The Thomson Reuters/Ipsos Consumer Sentiment Index (CSI) is based on a monthly random sample of consumer citizens in chosen countries who answer 11 standard quantitative questions. The 11 tracked questions are then used to create a series of Indexes.|
|MARKET VOLATILITY (VIX) – CBOE VIX (Chicago Board Options Exchange Volatility Index) measures annualized implied volatility as conveyed by S&P 500 stock index option prices and is quoted in percentage points per annum. For instance, a VIX value of 15 represents an annualized implied volatility of 15% over the next 30 day period. The VIX measures implied volatility, which is a barometer of investor sentiment and market risk.||ECONOMIC EXPANSION (% change) – GDP (Gross Domestic Product) measures the total market value of a nation’s output of goods and services during a specific time period. It is usually measured on a quarterly basis. Calculating real GDP growth allows economists to determine if production increased or decreased, regardless of changes in the purchasing power of the currency.|
|10 YR. CANADA TREASURY YIELD (%) – The yield on the 10-year Canadian Treasury note issued by the Canadian government. It is important because it is seen as a benchmark for interest rate movements and borrowing costs in the economy.||INFLATION (%) – The Consumer Price Index (CPI) is a measure of the average change in prices over time of goods and services purchased by households. This indicator value represents the trailing year over year % change in the CPI as of last month-end.|
|YIELD SPREAD (basis points) – The spread between 3-month Treasury bill yields and 10-year Treasury note yields measures the market outlook for future interest rates. A normal or upward-sloping yield curve, can imply that investors expect the economy to grow and inflation to eat into asset returns. They thus demand a higher yield for long-term Treasuries. An inverted yield curve has often been an indicator of coming recessions, but not always. For example, reduced inflation expectations could cause the yield curve to flatten.||UNEMPLOYMENT – Number of unemployed persons expressed as a percentage of the labour force. The unemployment rate for a particular group (age, sex, marital status, etc.) is the number unemployed in that group expressed as a percentage of the labour force for that group.|
|Household Debt to GDP (%) – Canada, Household Sector, Debt to Gross Domestic Product|
Data displayed in the Economic Indicators Dashboard are reflective of current data as provided by the data sources including any revisions to previous data. The revisions may change historic data points and historic ranges for some or all indicators. These changes are usually due to seasonal adjustments to previously supplied data.
This analysis represents an economic analysis utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.