How to Read the Economic Calendar
Your map for anticipating market movements and making smarter financial decisions.
Why It Matters: The Big Picture
The economic calendar is a global schedule of data releases that acts like a weather forecast for the financial markets. Understanding it helps investors, businesses, and even families navigate economic shifts. Major data releases can trigger significant market volatility and signal important trends.
-31.4%
US GDP Contraction (Q2 2020)
9.1%
US Inflation Peak (2022)
-700k
Jobs Lost in a Month (2008)
Employment
Often called the economy’s health indicator, employment data reflects consumer spending power. Rising employment signals a strong economy, while rising unemployment warns of a slowdown.
Illustrates the sharp job losses during the 2008 financial crisis, showing how Non-Farm Payrolls data can reveal the depth of a recession.
Gross Domestic Product (GDP)
GDP is the ultimate report card for a country’s economic growth. It measures the total value of all goods and services produced, providing a clear X-ray of economic health.
Shows the historic quarterly GDP contraction in the US during the COVID-19 pandemic, a key event that triggered massive stimulus.
Inflation
Inflation measures how much the value of your money is decreasing. Central banks watch this indicator closely, as high inflation often leads to interest rate hikes to cool the economy.
Tracks the surge in US consumer prices (CPI) to a 40-year high in 2022, prompting aggressive action from the Federal Reserve.
How to Interpret the Calendar: A 4-Step Guide
Identify Events
Focus on high-impact data like Employment, GDP, and Inflation.
Compare Forecasts
Markets react to surprises—the difference between the forecast and the actual result.
Observe Reaction
A “good” number isn’t always good. High inflation may lead to rate hikes, hurting stocks.
Connect to You
Think about the real-world impact on your loans, savings, and investments.