Leading Indicators OECD: Component Series: Interest Rate Spread: Original Series for Germany

DEULOCOSIORSTM • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

-1.83

Year-over-Year Change

-8508.72%

Date Range

1/1/1960 - 12/1/2023

Summary

The Interest Rate Spread for Germany is a key leading economic indicator used to assess the health and direction of the German economy. It measures the difference between long-term and short-term interest rates, providing insights into economic growth and monetary policy expectations.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The Interest Rate Spread is a composite index that tracks the difference between Germany's long-term government bond yield and its short-term money market rate. This spread is a widely followed signal of future economic activity, as it reflects investor sentiment and the stance of monetary policy.

Methodology

The data is collected and calculated by the OECD based on official German government and central bank statistics.

Historical Context

The Interest Rate Spread is closely monitored by policymakers, economists, and market participants to gauge the economic outlook and inform investment decisions.

Key Facts

  • The spread between long-term and short-term German interest rates is a reliable predictor of future economic growth.
  • A narrowing spread often signals an impending economic slowdown, while a widening spread points to strengthening economic conditions.
  • The Interest Rate Spread is a key input for the OECD's Composite Leading Indicator for Germany.

FAQs

Q: What does this economic trend measure?

A: The Interest Rate Spread for Germany measures the difference between long-term government bond yields and short-term money market rates, providing insights into economic growth and monetary policy expectations.

Q: Why is this trend relevant for users or analysts?

A: The Interest Rate Spread is a widely followed leading indicator that helps economists and policymakers assess the health and direction of the German economy, informing investment and policy decisions.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the OECD based on official German government and central bank statistics.

Q: How is this trend used in economic policy?

A: The Interest Rate Spread is closely monitored by policymakers, economists, and market participants to gauge the economic outlook and inform investment decisions.

Q: Are there update delays or limitations?

A: The Interest Rate Spread data is published with a short lag, typically 1-2 months after the reference period, and may be subject to minor revisions over time.

Related Trends

Citation

U.S. Federal Reserve, Leading Indicators OECD: Component Series: Interest Rate Spread: Original Series for Germany (DEULOCOSIORSTM), retrieved from FRED.