Macroeconomic analysis is a significant part of evaluating the entire
economic performance since analyzing and comprehending the
major economic indicators can assist us in recognizing the signals
these indicators provide to represent a potential change in the
markets.Some examples of housing indicators:
1- Home ownership rate: In the United States of America, the ownership rate was stable
at 65.60% in the second quarter of 2024
As for the average, the average was 65.27% in 1965 to 2024, where the highest level was
recorded at 69.20% in the second quarter of 2004 and the lowest was 62.90% in the
second quarter of 1965
2- Housing index: The housing index in America rose to 432.30 points in October
compared to 430.30 points in September 2024
As for the average, it reached 201.83 points in 1991 to 2024, the highest point was 432.30
points and the lowest point was 100 points in January 1991
3- Price to rent ratio: In America, the price to rent ratio decreased to 133.63 in the third
quarter of 2024 compared to
B 134.25 in the second quarter of the same year
As for the average, it reached 102.29 from 1970 to 2024, and the highest level was
recorded at 140.87 in the second quarter of 2022, and the lowest was 88.56 in the third
quarter of 1982
4- Residential real estate prices: In the United States of America, residential real estate
prices rose by 3.44% in September 2024 compared to the same month of the previous year
As for the average, real estate prices rose by 6.04% from 1971 to 2024, the highest level
was 18.67% in the first quarter of 2022, and the lowest was -16.92% in the fourth quarter
of 2008Therefore, we have selected the most commonly used indicators by
experts, so it could offer us a clear and detailed overview of the
economy, these indicators are:
Interest rate
Inflation
Unemployment rate
Balance of Trade
GDP (Gross domestic product)
CCI (Consumer confidence index)
Yield curve slope
Housing units
Indicators:
04
Interest rate
Interest rate which is consider one of the influencing macroeconomics indicators that can help
the investors, businesses and decision makers to make the best financial decisions that can serve
the economy.It reflects the overall rise
in the cost of living and is measured by indices such as the Consumer Price Index (CPI)
Inflation impacts the economy by reducing purchasing power, increasing living costs, and raising
production expenses.Meanwhile,
exports rose 2.7% to a record high of $273.4 billion, led by sales of other petroleum products,
passenger cars, pharmaceutical preparations, crude oil, plastic materials, trucks, buses, and
special purpose vehicles and civilian aircraft engines.Imports rose 3.4% as a result of
purchases of foods, feeds, and beverages
The trade deficit in the US widened to $78.2 billion in November 2024 compared to a revised
$73.6 billion gap in October and roughly in line with forecasts.As for (S&P Global Ratings), it predicts that in 2025 U.S. Real GDP is going to
experience a deceleration from outperforming the trend growth to underperforming the
trend, joined by an additional increase in unemployment rate and reduced inflation.Imports rose 3.4% to $351.6
billion, the biggest gain since March 2022, led by purchases of foods, feeds, and beverages,
semiconductors, passenger cars, civilian aircraft, nonmonetary gold and crude oil.In 2020, global inflation initially decreased due to
lower demand and commodity prices but rose later that year as demand increased and oil prices surged
globally.However, with the value still below 100, it indicates lingering caution among consumers, as
many remain hesitant to spend and prefer saving amid ongoing economic uncertainties.Interest rate has a critical impact on economy;
In fact, lower interest rates will lead to more borrowing money, this will encourages individual
and investor to increases spending and investment which goes to affect economy in positive way
(Economic recovery).The unemployment rate
averaged 4.0% last year compared to 3.6% in 2023.The impact on the unemployment rate was
minimal, although the jump to 4.3% in July, which prompted the Federal Reserve to cut
interest rates in September, was revised down to 4.2%.This chart shows unemployment rates since 2020 (Covid-19 pandemic).Balance of Trade
Balance of trade (BOT) is the difference between the value of a country's exports and imports
during a specific period.The US deficit was little changed with
China ($-25.4 billion vs $-25.5 billion) and Mexico ($-15.4 billion) but widened with the
European Union ($-20.5 billion vs $-17.1 billion), namely Germany ($-6.9 billion vs $-5.4
billion) and France ($-2.2 billion vs $-0.09 billion), as well as with Vietnam ($-11.3 billion vs
$-11 billion).The growth in Q3 real GDP is mainly driven by the rise in household spending, fixed
investments in non-residential assets, exports & imports and federal-level government
spending.10
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Housing units
A housing indicator is a metric or statistical measure used to assess and monitor various
aspects of the housing market, housing conditions, or housing-related policies.