Forex encyclopedia

Since the index represents weighted mean value of above-listed indicators, it is considered that it can forecast economic tendency of the state for half of year in advance. If over the last three months, the index value has negative dynamic, then the conclusion about slowdown of economic development is made. The index is published monthly, during the first week, at 10:00 a.m EST (New York). Respond to published data is minor, though the index is important. Such a respond can be explained by a later publication of the index – in a month after announcing of all its components, therefore, its approximate value is already known.

Japan Corporate Goods Price Index (CGPI) is an economic indicator calculated on the basis of price of goods acquired by Japanese enterprises. The index inter alia accounts for feedstock prices directly impacting on the final cost of manufacturing, therefore, this index is used by companies to adjust prices for its production. CGPI also accounts for the transportation prices. If apart from growth of CGPI Japan experiences rise in index of consumer prices, it tells about rise in inflation in the country. In its turn, it signalizes Bank of Japan about the possibility of raising of major interest rates. When published index value is above expected, it gives a slight support for consolidation of national currency.