Economic indicators - G
List of indicators - G:
- GDP - Gross domestic product
- GDP advance
- GDP deflator
- GDP final
- GDP provisional (revised)
- GNP Indicators
- Goldman Sachs Commodity Index
- Goldman Sachs Retail Index for Same-Store Sales
Gross Domestic Product (GDP)
This indicator calculates the amount of all goods produced and services provided on the territory of the U.S. in US dollars. Such facts as assets owners or the labor nationality are not taken into consideration. Nominal and real dollars are the equivalent for this data. These rates growth lets investors monitor the inflation.
U.S. economy productivity is shown entirely by this indicator. GDP growth is considered normal when it is higher than 2.0 percent and does not exceed 2.5 percent in conditions where the unemployment rate is between 5.5 percent and 6 percent. This can be carried to the corporate incomes, to which the stock market is directly dependent. Low GDP growth shows the weakness of the economy whether high GDP growth values may cause the inflation growth.
Extremely low GDP values, mostly below zero may be harmful for the dollar. One of the most dangerous situations for the economy is raising inflation accompanied by the lowering GDP growth. It can be a sing of stagflation and investors may lose their confidence. There are three releases included in the GDP report: 1) first release is advanced; 2) first revision, which is the preliminary release; and 3) second and last revision is the final release. These three releases usually affect the markets considerably.
The entire economy effectiveness is estimated by Gross National Product. Consumption spending, investment spending, net trade, and governmental spending are summed for GNP indicator at its macro scale. This indicator gathers all the services provided and the goods produced by the residents of the United States despite the fact whether they are on the U.S. territory or not.
Goldman Sachs Commodity Index
What it is: Commodity investments performance criteria that give the data of commodity price fluctuations based on production weight and a forecast of possible commodities unleveraged investment return available in some time. Why we care: Commodity prices with prolonged increase can cause consumer prices to grow, which is the inflation indicator. On the contrary, these factors lowering can cause disinflation and possibly deflation.
Goldman Sachs Retail Index for Same-Store Sales
What it is: Calculated by Goldman, Sachs retail industry analyst's index of sales and percentage change taken year-to-year. The basis of this index is same-store sales reports carried out each month by major merchandiser retailer firms.
Why we care: This index lets figure out any changes in consumer goods preferences.