In foreign exchange trading, what is the entrepreneur confidence index and what role does it play?

In foreign exchange trading, there are many indexes and contents that can be used by traders to analyze the market. So, what is the entrepreneur confidence index in foreign exchange trading? What role does it play?


What is the entrepreneur confidence index in foreign exchange trading? What role does it play? The entrepreneur confidence index comprehensively reflects entrepreneurs' views and confidence on macro-economy. The business climate index ranges from 0 to 200, with 100 as the critical value. If the index is above 100, it indicates that the economic situation tends to rise or improve; if it is lower than 100, it indicates that the economic situation tends to decline or decline; if it is equal to 100, it reflects that the economic situation has not changed much.

Enterprise prosperity index: an index that comprehensively reflects the prosperity of enterprise production and operation. Both the enterprise prosperity index and entrepreneur confidence index come from the enterprise prosperity survey conducted by the National Bureau of statistics. Enterprise prosperity survey is a systematic quarterly survey. The survey covers industry, construction industry, transportation, warehousing and postal industry, wholesale and retail industry, real estate industry, social service industry, information transmission computer service and software industry, accommodation and catering industry. The survey adopts the method of combining key survey and sampling survey, and selects nearly 20000 sample enterprises of different industries, different scales and different registration types. The subjects of the survey are corporate enterprises and persons in charge of industrial activities according to the legal entity.

The enterprise prosperity survey adopts the questionnaire survey method. Through the quantitative processing of the entrepreneur's judgment results about the current macroeconomic environment and micro business situation, the prosperity index is obtained, which can comprehensively reflect the macroeconomic development status, the prosperity situation of enterprise production and operation, as well as the trend of future development and change. The advantages of enterprise prosperity index and entrepreneur confidence index are that the industry coverage is wide and comprehensive, but the disadvantage is that it is not as sensitive as the purchasing manager index (PMI) of manufacturing industry, because PMI only reflects the changes of manufacturing industry in the current month, while the enterprise prosperity index and entrepreneur confidence index reflect the average changes of major industries in three months. The change and development of enterprises is a wind vane for the industry, and the transformation of the industry is the impact on the market.

This is what the entrepreneur confidence index is about. Good index data can create a good trading trend or atmosphere for everyone.

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