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.
Jobless Rate Stays Steady at 4.9% New York, NY — U.S. employment increased more than expected in July and wages picked up, signaling that the economy is picking up steam and raising the probability of an interest rate increase in.
Jobless Claims Up Slightly, but Point to Steady Hiring New York, NY — On Thursday, August 4, the U.S. Labor Department released its weekly report on unemployment insurance claims. It showed that in the week ending July 30, the advance.
New York, NY — On Wednesday, the ADP Research Institute published the ADP National Employment Report for the month of July. The report, which ADP produced in collaboration with Moody’s Corporation, showed the private sector added 179,000 jobs from June.
Monthly Gain Suggests Consumers Upbeat New York, NY — Consumer spending in the U.S. increased for the third straight month in June, suggesting consumers will be one of the main drivers of economic growth this year. Personal consumption, which measures.
Manufacturing Sector Posts 7th Consecutive Month of Growth New York, NY — Economists have been pessimistic on the U.S. economy, but one indicator suggests business might not be as bad as everyone is saying. The Institute for Supply Management Purchasing.
Shares of Automakers Slide after Data Released New York, NY — Auto sales in the U.S. remained strong in July but the two biggest manufacturers in the market failed to meet analysts’ expectations. Ford Motor Company (NYSE:F) said its sales.
Consumer Spending Only Bright Spot New York, NY — The U.S. economic expansion slowed in the first half hurt due to reduced business spending. The slowdown was partly offset by a strong gain in household purchases in the second quarter,.
While markets are anticipating a solid gross domestic product (GDP) report for the second quarter on Friday, weekly jobless claims quietly ticked up. On Thursday, July 28, the U.S. Department of Labor released its weekly report on unemployment insurance claims..
While the U.S. stock market is surging past its all-time highs, one economic indicator is saying that the underlying economy might not be as strong as investors think. On Wednesday, July 27, the U.S. Department of Commerce released the latest.
On Tuesday, July 26, S&P Dow Jones Indices released the latest results for the S&P Case-Shiller Home Price Index. It showed that in the month of May, home prices in the U.S. increased by five percent year-over-year. (Source: “Home Price.