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Basic terms

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Glossaries

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Term Definition
Pending Home Sales

An index created by the National Association of Realtors (NAR) that tracks homes sales in which a contract is signed but the sale has not yet closed. The pending home sales index is a leading indicator of future existing home sales as it typically takes four to six weeks to close a sale after a contract has been signed.

Personal Consumtions Expenditures

A measure of price changes in consumer goods and services. Personal consumption expenditures consist of the actual and imputed expenditures of households; the measure includes data pertaining to durables, non-durables and services. It is essentially a measure of goods and services targeted toward individuals and consumed by individuals.

Producer price index

A family of indexes that measures the average change in selling prices received by domestic producers of goods and services over time. PPIs measure price change from the perspective of the seller.

Public Sector Net Borrowing

In the U.K., the amount of expenditures less the total receipts taken in by the government. Public sector net borrowing is the measure of fiscal surpluses and deficits along with the amount of new debt created. If this number is positive, it means the U.K. is running a fiscal deficit, while a negative number represents a fiscal surplus.

Purchasing Managers Index

An indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

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