UK Terms of Trade

Producer Prices and the Import and Export Indices must run and release together. Because next comes Terms of Trade. Terms of Trade is found by dividing the Import exchange rate Index to the Export exchange rate Index.

Industrial Production runs alongside the Import Index. If Imports exceed exports then Industrial Production will release as a high rate but inventories will report low as more work, time and money is devoted to manufacture goods for exports.

Brian Twomey

Leave a Reply

Fill in your details below or click an icon to log in:

You are commenting using your account.Log Out / Change )

You are commenting using your Facebook account.Log Out / Change )

Connecting to %s