1️⃣ GDP (Gross Domestic Product)
Total Economic Volume and Growth (measuring the 'size' and 'speed' of the economy)
What is it? The market value of all final goods and services produced in a country during a certain period (usually a year or a quarter). You can think of it as the 'total price' of all goods and services newly created in that country in that year.
What can be seen? The speed at which the country is 'earning money' and whether the economy is growing.
For example: When GDP grows rapidly, it is like a company's revenue surging; negative GDP growth indicates economic recession.
China Data Query Official Website: National Bureau of Statistics of China
2️⃣ CPI (Consumer Price Index)
Price Level and Inflation (measuring whether 'money' is valuable)
What is it? If GDP is 'how much cake has been made bigger', CPI measures 'whether the money for buying cake has depreciated'. It reflects the degree of inflation or deflation by tracking the average price changes of a basket of daily goods (such as food, clothing, rent). An increase in CPI means that prices have generally risen, the purchasing power of money has decreased; the inflation we commonly refer to mainly looks at it.
What can be seen? Whether inflation is serious and whether the cost of living for ordinary people has increased. This relates to everyone's cost of living. When the central bank formulates monetary policy (such as whether to raise or lower interest rates), CPI is a key reference. Countries generally set a moderate inflation target (such as around 3% in China).
In one sentence: Rapid CPI growth = things getting more expensive = money becoming less valuable.
China Data Query Official Website: National Bureau of Statistics of China
3️⃣ PPI (Producer Price Index)
Industrial Producer's Ex-factory Price Index
What is it? The price changes of raw materials and semi-finished products purchased by enterprises. PPI measures the price changes of industrial products at the time they first leave the factory, reflecting the cost pressure from the production side. It can be understood as the 'upstream' of CPI. If the prices of raw materials (such as steel and coal) rise (PPI increases), 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? Whether upstream costs have risen and whether inflation pressure will be transmitted to consumers. PPI reflects the profitability of enterprises; a persistently low PPI usually indicates that companies are facing difficulties and industrial demand is sluggish.
Understanding Technique: If PPI rises, CPI may follow; if PPI falls, corporate pressure decreases.
China Data Query Official Website: National Bureau of Statistics of China
4️⃣ PMI (Purchasing Managers' Index)
What is it? Through questionnaire surveys of manufacturing/service industry purchasing managers, to understand their views on orders, inventory, production, etc. This is a very important leading indicator. The PMI index has a dividing line of 50% for expansion and contraction.
What can be seen? Whether companies have confidence in the economy, whether they are expanding or contracting.
Value Reference: Above 50 = expansion, below 50 = contraction.
China Data Query Official Website: National Bureau of Statistics of China
5️⃣ Unemployment Rate
Measuring 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 and whether companies are laying off employees. A low unemployment rate indicates a vibrant economy and social stability. A high unemployment rate may trigger social problems, indicating serious economic issues.
In one sentence: High unemployment rate = weak economy; low unemployment rate = hot job market.
China Data Query Official Website: National Bureau of Statistics of China
6️⃣ Interest Rate
What is it? Usually refers to the benchmark interest rate set by the central bank, such as the Federal Funds Rate in the US. Interest rates can be viewed as the 'price of money'. When you save money, the bank pays you interest, which is your return for lending funds; when you take out a loan, you pay the bank interest, which is your cost of using the funds. The central bank (in China, it is the People's Bank of China, PBOC) adjusts policy rates to influence the entire market's interest rate level and thus regulate the economy.
What can be seen? Whether monetary policy is loose or tight will affect consumption, investment, loans, stock markets, and the cryptocurrency market. Lowering interest rates: reduces borrowing costs, encourages corporate investment and personal consumption, stimulates economic growth. Raising interest rates: increases borrowing costs, suppresses excessive investment and consumption, cools the economy, and combats inflation. Interest rate levels also profoundly affect stock markets, bond markets, exchange rates, and the real estate market.
In one sentence: 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 at which the central bank is 'printing money' and the scale of credit expansion.
What can be seen? Whether money has increased and whether liquidity is sufficient. If the growth rate of M2 is too fast, far exceeding GDP growth, it may trigger inflation or asset bubbles; if it is too slow, it may lead to tight market liquidity and decreased economic vitality. It is an important tool for the central bank to regulate the macroeconomy.
Analogously: M2 rising = more liquidity, asset prices (stocks/houses/cryptos) are likely to rise.
8️⃣ Fiscal Deficit / Government Debt Ratio
What is it? Government expenditure minus revenue; the larger the deficit, the more the government is 'burning money'. Just like a household, the government also has income (mainly from taxes) and expenditure (defense, education, infrastructure, civil servant salaries, etc.). Fiscal Deficit = Total Government Expenditure - Total Government Revenue. If expenditure exceeds revenue, a deficit occurs. Fiscal deficit ratio = fiscal deficit / GDP. This ratio better illustrates the issue as it measures the scale of the deficit relative to the entire economic volume. Internationally, a threshold of 3% is usually considered a warning line.
What can be seen? Whether the government is stimulating the economy and whether the finances are sustainable. A moderate fiscal deficit (active fiscal policy) can stimulate the economy, especially during economic downturns, when the government creates demand by increasing expenditure. However, a long-term excessive deficit means the government needs to borrow a lot of money (issue national bonds) to cover the gap, which will increase the debt burden.
Simple understanding: If the government owes too much money, it may print money to repay debts in the future, triggering inflation.
China Data Query Official Website: Ministry of Finance of the People's Republic of China
9️⃣ Real Estate Data (Construction Volume, Sales, Housing Price Index)
What is it? Construction, sales, and other data related to the real estate industry.
It is not a single indicator, but a combination of data:
Housing Price Index: The most closely watched, the official release is the '70 large and medium-sized cities' residential sales price changes'.
Real Estate Development Investment: Measures how much capital flows into real estate construction, an important component of fixed asset investment.
Commercial Housing Sales Area/Amount: Reflects market demand and trading activity.
New Construction / Area Under Construction / Completed Area: Reflects the condition on the supply side and the future supply of housing.
What can be seen? 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 Note: In economies like China/USA, the real estate sector is a pillar industry and very sensitive.
China Data Query Official Website: 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 'international balance of payments', mainly including two major parts: Current Account: records trade in goods and services (this is where we commonly refer to the trade balance), as well as cross-border wages, investment income, etc. 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 'earning money' (surplus) or 'burning money' (deficit).
Simple 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?
