What are the most important global economic indicators? Well, according to Goldman’s Jim O’Neill they’re not exactly what you might have expected (via Business Insider):
“There are some indicators which are simply more powerful in their reliability than others, as well as having predictability in shores beyond their own. In my view, the Korean trade data, US job claims, the US ISM report and its new orders and inventory component, the Euro area business and consumer confidence surveys, especially the German IFO, are the key numbers I look for each month. I do find myself often wondering whether one misses something from the Growth Market world, but if you throw in a couple of key Chinese monthly statistics, their monetary data, PMI, trade and monthly retail sales numbers in particular, then you kind of have most of what you need.”
I would certainly throw in a few more indicators here. Global industrial production figures are always important. Japan’s Tankan Survey is helpful. Out of all of these I’d argue that the Chinese monthly PMI is the strongest indicator of global economic growth.
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