Examples of Economic Indicators

The government reports on economic indicators to give an overview of how the economy is performing.money tower image by drx from Fotolia.com

The government uses a number of indicators to provide information on the performance of the economy. The United States Congress publishes a collection of economic indicators on a monthly basis. Federal agencies also periodically issue important measurements. The government divides the indicators into several categories. Each set indicates how the economy is doing--and how it might do in the future.

Gross Domestic Product

The GDP is the most important economic indicator.factory image by Zbigniew Nowak from Fotolia.com

Gross domestic product is the most important measure of the state of the economy, according to Investor Guide. The GDP, which is reported quarterly, differs from gross national product in that the GDP includes only goods and services produced within the geographical boundaries of the U.S., regardless of the producer’s nationality. The GNP includes U.S.-related production outside the country.

The employment rate is one measures the health of the economy.worker image by Alexey Klementiev from Fotolia.com

The unemployment rate helps economists judge how the economy is performing. A lower unemployment rate implies that more people have jobs. During the current economic recession, the U.S. unemployment level was among the highest since the Great Depression of the 1930s. In the first quarter of 2010, unemployment was 9.5 percent, according to the U.S. Bureau of Labor Statistics. Congress also measures real earnings--wages adjusted for inflation.

Productivity helps to determine the standard of living. An increase in productivity can result in higher real income and increased price stability, according to U.S. Bureau of Labor Statistics. The measurement of productivity allows economists to evaluate the relative efficiency of factory utilization. Congress provides statistics on industrial production, new construction, new private housing and vacancy rates, business sales and inventories and manufacturers’ shipments, inventories and orders.

Price indices point to the rate of inflation in a country’s economy. In a healthy economy, wages keep in step with prices. Price indices are used in developing economic policy to maintain wage and price stability, according to the Bureau of Labor Statistics.

Currency exchange rates impact import-export activity and economic growth. Central banks set monetary policies, and can set changes in credit market conditions. The money supply and interest rates also are important economic factors. Congress measures money stock, bank credit, consumer credit, interest rates and stock prices and yields.