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USA Economy

Real GDP:

  • Real GDP measures the total value of final goods and services produced in a country over a year. Imagine it as the size of the country's economic pie.
  • Real GDP is the most widely recognized measure of economic output and is used by governments, businesses and consumers alike to measure changes in a country’s standard of living.
  • Real GDP uses constant prices (usually based on a specific year) to remove the distorting effect of inflation. This allows for a more accurate measure of actual production growth, not just price increases. Real GDP is calculated by taking the nominal (current-price) GDP and dividing it by a price index, such as the Consumer Price Index (CPI), to account for the effect of inflation.
  • Only the final value of goods and services is counted. For example, if flour is used to make bread, only the bread's value is included, avoiding double-counting.
  • Comparing Real GDP year-over-year reveals if the economy is growing (producing more) or shrinking (producing less). A rising Real GDP suggests a healthy economy.
Annual
Quarterly

Real GDP per capita:

    Real Gross Domestic Product (GDP) per capita is a measure of a country's economic output that adjusts for inflation and is expressed on a per capita basis. It represents the average economic output per person in a country, calculated by dividing the real GDP of a country by its total population.
Quarterly

Treasury Yield:

  • A Treasury yield is the return on investment for a U.S. Treasury security. It is the amount of interest paid on a Treasury bond, expressed as a percentage of the bond's face value.
  • Treasury yields are determined by the market demand for Treasury bonds and the supply of bonds issued by the U.S. government.
  • Treasury yields are widely used as a benchmark for interest rates and are considered to be one of the safest investments due to the creditworthiness of the country. They are also used as a reference for the cost of borrowing for various types of loans, such as mortgages and corporate bonds.
  • Changes in Treasury yields can have a significant impact on the financial markets, as they can signal changes in the direction of interest rates, which in turn can affect the cost of borrowing and the performance of various financial assets. For this reason, Treasury yields are closely watched by investors, economists, and policymakers, and they are often used as a barometer of the overall health of the U.S. economy.

Fed Funds Rate:

  • The Federal Funds Rate is the interest rate at which banks can lend or borrow money from each other overnight. It is one of the primary tools used by the Federal Reserve, the central bank of the United States, to influence the economy.
  • The Federal Funds Rate is used as a benchmark for short-term interest rates and affects the cost of borrowing for consumers and businesses.

Consumer Price Index (CPI):

  • The Consumer Price Index (CPI) is a measure of the average change in prices over time of goods and services consumed by households. It is widely used as a benchmark for inflation and is calculated by the Bureau of Labor Statistics (BLS) of the United States Department of Labor.

Inflation:

  • Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. It is measured by the Consumer Price Index (CPI) or other similar price indices.
  • Inflation occurs when the demand for goods and services exceeds the supply, causing prices to rise. This can be caused by a variety of factors, including an increase in consumer spending, a decrease in the supply ofgoods and services, an increase in production costs, or an increase in the money supply.

Inflation Expectation:

  • Inflation expectations refer to the public's predictions or beliefs about the future rate of inflation. They are an important factor in determining inflation and economic activity, as they can influence consumer and business behavior and affect the demand for goods and services.

No Inflation Expecations data/chart. Sorry!

Consumer Sentiment:

  • Consumer sentiment refers to the attitudes, opinions, and feelings of consumers about the current and future state of the economy and their personal financial situation. It is a measure of consumer confidence, which is a key factor in determining spending and economic activity.
  • Consumer sentiment is often measured through surveys, such as the Consumer Sentiment Index, which ask consumers about their expectations for the economy, their personal finances, and their plans for spending and saving.

No Consumer Sentiment data/chart. Sorry!

Retail Sales:

  • Retail sales refer to the total sales of goods and services made by retailers to the end consumers. Retail sales data is an important economic indicator, as it provides a measure of consumer spending, which is a significant component of economic growth.

Durable Goods:

  • Durable goods are consumer products that are expected to last for at least three years, such as appliances, electronics, furniture, and vehicles. These goods are typically made of durable materials and are designed to withstand normal wear and tear.
  • Durable goods are an important component of consumer spending, and changes in their sales can provide valuable insights into consumer confidence and the overall health of the economy. An increase in durable goods sales can indicate that consumers have confidence in the economy and are willing to make big-ticket purchases, while a decrease in sales may suggest that consumers are becoming more cautious with their spending.

Unemployment:

  • Unemployment is a measure of the percentage of the labor force that is without work but actively seeking employment. It is one of the most widely used indicators of the health of an economy, as it reflects the ability of the economy to create jobs and provide opportunities for workers.

Non-Farm Payrolls:

  • Non-farm payrolls, also known as non-farm employment, is a measure of the number of paid workers in the United States, excluding farm workers, private household employees, and non-profit organization employees. Non-farm payrolls are an important economic indicator, as they provide a measure of job creation and the overall health of the labor market.
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