Let’s talk about some important economic stuff. GDP, which stands for Gross Domestic Product, tells us how much stuff a country makes. It also helps us figure out if the country’s doing well or not so well.
GDP
The Department of Commerce checks the GDP every quarter and breaks down the changes in consumer spending, business investments, government spending, and the impact of foreign trade. The government releases an initial estimate first, then updates it with a revised reading based on more input, and finally provides a third and final report.
Employment Figures
Next up is jobs. Every month, the Department of Labor tells us about jobs. They say how many new jobs got made by businesses, the government, and different types of work. They also tell us about how many people don’t have jobs. If not too many people are without jobs, it can mean the economy is strong, but it could also mean prices might go up
Industrial Production
Industrial production measures the output of manufacturing-based industries, including those that produce goods for consumers and businesses. The Federal Reserve releases this information monthly and also reports on how much capacity factories are using.
Consumer Spending
Consumer spending makes up two-thirds of the U.S. GDP and gives us a good idea of consumer well-being. The Department of Commerce releases monthly data on personal income and spending. They also provide a price index that shows changes in how much consumers need to spend on certain items, indicating inflation.
Inflation
Ever heard of inflation? It’s when stuff gets pricier. A bit of inflation is okay, but too much is bad. Different kinds of inflation are measured with special numbers. The Consumer Price Index (CPI) and the Wholesale Price Index (WPI) are common ones. There’s also the Producer Price Index (PPI) that looks at prices from the makers’ side.
Home Sales
Buying a home is a big deal for most people. So, the Department of Commerce’s monthly report on new home sales reflects how consumers feel.
This report is based on contracts to buy new or existing homes and tells us about single-family home sales regionally and nationally. It also gives information on median and average sales prices. The National Association of Realtors (NAR), a private realty trade association, releases a monthly report on existing home sales based on completed transactions.
Home Building
The number of houses that builders start working on and the number of permits they get to start building houses show how confident real estate developers are in the economy. The Department of Commerce releases monthly data on new residential construction for different regions and the entire nation.
Construction Spending
Another indicator related to construction is the change in monthly construction spending across the country, measured in dollars. This spending includes various expenses like labor, materials, and engineering work. The Department of Commerce’s report breaks down spending on residential and nonresidential public and private construction.
Manufacturing Demand
The report on manufacturers’ shipments, inventories, and orders gives us an idea of how much demand there is for manufactured items. The Department of Commerce releases a preliminary monthly report and a more detailed follow-up. They categorize manufactured goods by types and industries, from electronic instruments to machine tools to consumer goods.
Retail Sales
The Department of Commerce’s monthly report on retail and food services sales is a good way to gauge consumer spending health. This report shows sales in various retail sectors, including department stores, furniture stores, and home furnishing stores.
FAQs
- What is GDP?
Gross Domestic Product, or GDP, shows us how much stuff a country produces, and it helps us see if the country’s doing well economically.
- Who checks the GDP and how often?
The Department of Commerce checks the GDP every three months. They look at spending, investments, government expenses, and trading with other countries to understand how the economy is doing.
- How does the government share GDP information?
First, the government estimates the GDP. Then, they update it with more details. Finally, they give us the complete report.
- What does the Department of Labor share every month?
They tell us about jobs. We learn about new jobs from businesses, the government, and different work areas. They also share info about unemployment, which is when people don’t have jobs.
