Economy
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.
U.S. Growth Slows as Companies Cut Spending
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,.
U.S. Weekly Jobless Claims Climb to 266,000
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..
U.S. Durable Goods Orders Plunged in June
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.
U.S. Home Prices Increase 5% in May
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.
U.S. Consumer Confidence Holds Steady in July
New York, NY — U.S. consumer confidence held steady in July, despite the fallout from the United Kingdom’s referendum to leave the European Union. The Conference Board’s consumer confidence index came in at 97.3 in July, a slight decrease from.
Traders Looking for Clues on Rate Direction from Fed Announcement
Fed’s Statement May Provide Clarity New York, NY — With stock markets at a record high and a rebound in the employment data, investors will be looking for clues from Federal Reserve policy makers tomorrow on the direction of interest.
U.S. Retail Sales Climb More Than Expected in June
New York, NY — Consumer spending rose faster than expected in June, according to the latest government report. On Friday, the Census Bureau announced that U.S. retail and food services sales advanced 0.6% month-over-month in June to a seasonally adjusted.
Study: Top CEOs Earn 276 Times More Than the Typical Worker
The American economy is seven years into its recovery from the financial crisis, but some people seem to be benefiting more than others. On Tuesday, the Economic Policy Institute (EPI) released a report on CEO compensation in America. According to.
U.S. CPI Rose 0.2% in June
Consumer prices rose in June for the fourth straight month, according to the latest reading on the cost of living by the government. On Friday, the Bureau of Labor Statistics released its Consumer Price Index (CPI) data for the month.
U.S. Job Openings in May Fell to Lowest Level in 2016
The U.S. economy didn’t add that many jobs in May. Now, a new report just confirmed the month’s weakness in the labor market. On Tuesday, July 12, the Bureau of Labor Statistics released the latest “Job Openings and Labor Turnover.
