Series 50: Important Coincident Indicators

Important Coincident Indicators

Gross domestic product (GDP). GDP measures the dollar value of all the finished goods and services produced within the geographic boundaries of a country. The Bureau of Labor Statistics has divided the GDP into four major components:

1.Personal consumption expenditures is the largest component, at around 70%. It consists of all consumption of goods and services sold within the U.S.

2.Business investment includes the purchases by companies to produce consumer goods. These include new business equipment, inventory orders, and housing construction.

3.Government spending makes up about 20% of GDP.

4.Imports and exports: exports add to the GDP, while imports sub