A country's trade balance reflects the difference between exports and imports of goods and services. The trade balance is one of the biggest components of the Balance of Payment, giving valuable insight into pressures on country's currency.

Surpluses and Deficits
A positive Trade Balance (surplus) indicates that exports are greater than imports. When imports exceed exports, the country experiences a trade deficit. Because foreign goods are usually purchased using foreign currency, trade deficits usually reflect currency leaking out of the country. Such currency outflows may lead to a natural depreciation unless countered by comparable capital inflows (inflows in the form of investments, FDI - where foreigners investing in local equity, bond or real estates markets). At a bare minimum, deficits fundamentally weigh down the value of the currency.

Ramifications of Trade Balance on Markets
There are a number of factors that work to diminish the market impact of Trade Balance upon immediate release. The report is not very timely, coming some time after the reporting period. Developments in many of the figure's components are also typically anticipated well beforehand. Lastly, since the report reflects data for a specific reporting month or quarter, any significant changes in the Trade Balance should plausibly have already been felt during that period - and not during the release of data.

However, because of the overall significance of Trade Balance data in forecasting trends in the Forex Market, the release has historically been one of the most important reports out of the any country.

Measures the output produced for each hour of labor worked. Non-farm Productivity is considered the most accurate gauge of overall business health, given farming data's small and volatile contribution to GDP. To businesses, higher productivity indicates efficient use of employees and capital. Given that labor costs make up more than two-thirds of the average businesses expenses, high productivity can allow a firm to fulfill consumer demand with less labor costs, boosting profitability. Thus trends in this report can precede investment spending and business growth. Also if prices for raw materials increase, improved productivity can save a firm from passing higher costs to the end consumer. Given such business effects, healthy productivity growth bodes well for the economy as a whole, signalling increased production capability and business growth.

Productivity is reported as output per hour per worker, categorized into industry figures.

On a Technical Note: The Non-Farm Productivity number is generated by comparing the number of hours worked (Employment Situation report) to Gross Domestic Product data.

The indicator reflects the quarterly changes in salaries and other income received by working population.

Dollar volume of new orders, shipments, unfilled orders and inventories as reported by domestic manufacturers. Factory Orders is not a widely watched economic release. The Advance Release on Durable Goods Activity reported one week earlier tends grab more market attention, given that durable goods make up more than half of factory orders.

Factory Orders does provide a comprehensive look at the manufacturing sector. Specifically, the New Orders figure can act as a gauge of demand across industries while Shipments are indicative of supply. The Unfilled Orders and Inventory figures reconcile the balance between New Orders and Shipments; high Shipments are indicative of an excess of demand relative to supply, high Inventories signal an excess of supply over demand.

Figures are reported in billions of dollars and also in percent change from the previous month.

On a Technical Note: The New Orders figure measures the value of orders received by manufacturers for new products from both domestic and foreign sources. The total value of products shipped is calculated in Shipments while Unfilled Orders measures the value of goods backlogged for order but not yet shipped. Lastly, Inventories gauges the amount of unsold goods held by manufacturers.

The stock of unsold goods held by wholesalers. Wholesalers act as intermediaries between manufacturers or importers, and retailers. Wholesalers sell directly to retailers, who strive to act in accordance (ideally) with consumer demand. Consequently, high Wholesale Inventories indicate that unsold goods are piling up, suggesting that retailers are facing lagging consumer demand and unwilling to purchase goods. Conversely, declining Wholesale Inventories suggest retailers are buying more goods to meet strong or rising demand. Because Wholesale Inventories reflect the demand retailers have for their manufacturers' wares, the report offers an early indication of the potential strength of consumer spending.

Wholesale Inventories are reported in headlines as a percent change from the previous month.