An economy is the amount of money made and used in a particular country or region. The United States is the world’s biggest economy, accounting for roughly 16% of the global economy. The European Union, which is made up of 27 European countries, is the world’s biggest economic region, accounting for 17% of the world’s economy.
Economics look at a number of factors when considering the relative strength of an economy. One of the main considerations is the gross domestic product (GDP). GDP is a measure of all the goods and services produced in an economy and it is generally calculated on a quarterly and annual basis.
Sustained economic growth positively impacts income, employment levels, consumption, and the overall standard of living. In a strong or growing economy, businesses increase their sales, hire more people, are more confident about the future, and invest more in their companies. Consumers earn more, are more optimistic about the future, and spend more.
In the years leading up to the 2008 financial crisis, the U.S. reported annual GDP growth of around three percent. Since the 2008 and 2009 recession, U.S. GDP has been more subdued at around 2.2%.
When considering the strength of an economy, economists also look at inflation, interest rates, jobs growth, consumer demand, population growth, standard of living, and social and political factors.
By measuring this data on an annual basis, economists can determine if an economy is expanding or contracting. An economic analysis can also help investors get a general idea of market conditions and possible trends.
Measure of Home Builder Confidence Gains in August New York, NY — Builders in the U.S. feel more confident that demand for single-family homes will remain strong, boosting prospects for the economic recovery in the world’s largest economy. The National.
Budget Deficit Up 10% Fiscal Year-to-Date New York, NY—On Wednesday, August 10, the U.S. Treasury Department released its Monthly Treasury Statement. It showed that in July, outlays by the U.S. government exceeded revenues by $112.8 billion. (Source: “Monthly Treasury Statement.
Prices Paid by Manufacturers Decline New York, NY — Prices paid by the U.S. manufacturers dropped in July driven by global weakness in demand and falling energy prices. The producer-price index, a measure of what manufacturers and companies pay to.
Sales Figures Almost Unchanged from Prior Month New York, NY — Retail sales in the U.S. were unchanged in July as consumers reduced spending on clothing and other goods, signaling some slowdown in consumer spending and raising questions over the.
Bureau of Labor Statistics Reports July Increase New York, NY — Prices of U.S. imports rose last month, signaling some inflationary pressure in the economy going forward. Imports advanced 0.1% in July, the U.S. Bureau of Labor Statistics reported today,.
Nominal Disposable Income Set to Grow 4.4% New York, NY — The latest data on growth in U.S. gross domestic product (GDP) turned out to be disappointing. But one of the major firms on Wall Street just said that income.
Treasury Sells 10-Year Bonds at Second-Lowest Yield on Record New York, NY — U.S. government bond prices rose Wednesday as a sale of 10-year Treasury notes experienced a strong demand, courtesy of foreign investors. The Treasury Department sold $23 billion.
5.6 Million Openings, 5.1 Million Hires, 4.9 Million Separations New York, NY—June was a solid month for the U.S. labor market, with the latest report suggesting that job openings edged up slightly. On Wednesday, August 10, the Bureau of Labor.
Average Forecast for Growth Remains Unchanged at 2% New York, NY — Britain’s decision to leave the European Union will not have a major economic impact on the U.S. economy, according to a survey of economists by The Wall Street.
Economic Optimism Index at 48.4 New York, NY — There are several measures for consumer confidence in the U.S. This time, it’s the Economic Optimism Index released by the TechnoMetrica Institute of Policy and Politics (TIPP). On.