ECONOMIC INDICATORS. cont.
Labels: Fundamental AnalysisThe Gross National Product (GNP)
The Gross National Product measures the economic performance of the
whole economy.
This indicator consists, at macro scale, of the sum of consumption
spending, investment spending, government spending, and net trade. The
gross national product refers to the sum of all goods and services produced
by United States residents, either in the United States or abroad.
The Gross Domestic Product (GDP)
The Gross Domestic Product (GDP) refers to the sum of all goods and
services produced in the United States, either by domestic or foreign
companies. The differences between the two are nominal in the case of the
economy of the United States. GDP figures are more popular outside theUnited States. In order to make it easier to compare the performances of
different economies, the United States also releases GDP figures.
Consumption Spending
Consumption is made possible by personal income and discretionary
income. The decision by consumers to spend or to save is psychological in
nature. Consumer confidence is also measured as an important indicator of
the propensity of consumers who have discretionary income to switch from
saving to buying.
Investment Spending
Investment—or gross private domestic spending - consists of fixed
investment and inventories.
