Gross Domestic Product (GDP)

Definition:

GDP measures the dollar value of all goods and services produced within the borders of the United States, regardless of who owns the assets or the nationality of the labor used in producing that output. Data are available in nominal and real dollars. Investors always monitor the real growth rates because they are adjusted to inflation.

Importance:

This is the most comprehensive measure of the performance of the US economy. Healthy GDP growth is between 2.0% and 2.5% (when the unemployment rate is between 5.5% and 6.0%). This translates into strong corporate earnings, which bodes well for the stock market. A higher GDP growth leads to accelerating inflation, while lower growth indicates a weak economy.

Source:

Bureau of Economic Analysis, U.S. Department of Commerce.

Availability:

Third or fourth week of the month at 8:30am ET for the prior quarter, with subsequent revisions released in the second and third months of the quarter.

Frequency:

Quarterly.

Revisions:

Revised estimates are released during the second and third months of the quarter based on more complete information. Benchmark data and new seasonal adjustment factors are introduced in July with the release of second quarter data. This revision affects at least three years worth of data. Its significance is moderate.

Raw Data:

http://www.bea.doc.gov/bea/dn1.htm

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