Working with Economic Indicators

Chapter 3

Indicators of Economic Activity

Probably the most widely shared concern about the economy among business managers and executives is whether the economy is expanding or contracting. In this chapter we will consider some of the key U.S. indicators that measure economic activity. The sales levels for some businesses may be more closely tied to the activity in the overall economy than other businesses, but nearly all businesses see their sales move higher or lower somewhat in tandem with the overall economy. Further, for these key measures, accompanying indicators are usually reported for individual sectors and subsectors of the economy, at least one of which should apply to any business.

Gross Domestic Product

Probably the most important ...