Could you please help me to identify 10 important economic measures (e.g. CPI) or areas (e.g. inflation using two or three indications) that best describes the current state of the U.S. economy. There needs to be an analysis of each and focusing on its importance, what it says about the current state of the economy and the latest reading and trend.© BrainMass Inc. brainmass.com October 7, 2022, 6:46 pm ad1c9bdddf
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Following are the Key indicators of the money supply in the US Economy
Gross Domestic Product
Gross domestic product is the main index of the economy. It speaks about the current form of the economy. The GDP growth rate reflects the economic trend of the country. It's a quarterly report generated by Bureau of
Economic Analysis (BEA).
The gross domestic product of the country rose with a growth rate of 3.2% in the 4th quarter of 2010 as compared to 2.6% in the 3rd quarter of 2010.
Money supply speaks about the amount of money floating for spending in the economy. Federal Reserve (FED) releases the quarterly report on the M1 and M2 type of money supply.
The total money supply in the US economy grew at 22.3$ for M1 and 18.1% for M2.
Consumer confidence Index:
It is an index released by the Conference board. It is survey result of more than 5,000 households across the country to find out the financial health, spending power, and confidence of the average consumer. Consumer confidence index for US currently rose at 1%.
Consumer Price Index
Consumer Price Index (CPI) is a measured by pricing the items on a list representative of a typical urban household budget. CPI is important because it speaks about the rate of inflation for the country.
If we look at the data released by Bureau of Labor Statistics, on a seasonally adjusted basis, the CPI-U increased 0.5 percent in December 2010 after increasing 0.1 percent in November 2010. The index for all items removing food and energy items CPI rose 0.1 percent in December 2010, the same increase as in November 2010.
Employment Cost Index
The employee cost index is an index based indicator that represents the change in wages, bonuses and benefits from the previous quarter. It is displayed on a per hour basis. Generally it is a quarterly report of compensation cost released in the final month of the quarter, with a cutoff date of payroll periods ending the twelfth of the month of the release of ECI. Here compensation cost represents the cost of a company to produce a product or deliver a service at a market place.
If we look at the data released by Bureau of Labor Statistics, civilian workers compensation, wages and salaries, and benefit costs all rose 0.4 percent, all seasonally adjusted, from September to December 2010. If we look at the over the year data, compensation rose 2.0 percent, wages and salaries 1.6 percent, and benefits 2.9 percent.
Employment Situation report is a more comprehensive labor report that provides statistics including non-farm payroll, hours worked and the hourly earnings in the country and also the unemployment rate in the country.
If we look at the data released by Bureau of Labor Statistics, the unemployment rate fell by 0.4 percentage point to 9.0 percent in January 2010, whereas the non-farm payroll employment changed little 36,000 positive. Here the employment in the US economy rose in manufacturing and retail and declined in construction and transportation.
Producer Price Index
Producer price index is a weighted index of prices measured at the wholesale level or also called as producer level. It speaks about the trend in the wholesale market manufacturing industries and commodities markets.
If we look at the data released by Bureau of Labor Statistics, the Producer Price Index for Finished Goods rose 1.1 percent in December 2010, seasonally adjusted. This advance followed increases of 0.8 percent in November 2010 and 0.4 percent in October 2010. The index for finished goods removing items of foods and energy moved up 0.2 percent.
Productivity and Costs
It is quarterly report released by Bureau of Labor Statistics that measures the level of output that is achieved by businesses per unit of labor. It includes the effect of employee benefit plans, stock options expensing and taxes.
If we look at the data released by Bureau of Labor Statistics, productivity rose 2.6 percent in the nonfarm business sector in fourth quarter 2010; unit labor costs declined 0.6 percent (seasonally adjusted annual rates). The annual average productivity in the US economy increased 3.6 percent from the year 2009 to 2010.
Real earnings are a report of hourly real income irrespective of the inflation impact. It is seasonally adjusted report.
If we look at the data released by Bureau of Labor Statistics, real average hourly earnings fell 0.4 percent from November 2010 to December 2010, it is seasonally adjusted. Here a 0.1 percent increase in average hourly earnings was more than offset by a 0.5 percent increase in the CPI-U in the US economy. Real average weekly earnings fell 0.4 percent over the month during 2010.
U.S. Import and Export Price Indexes
It is an index that is primarily designed to reflect price trends for the U.S. merchandise foreign trade sector.
If we look at the data released by Bureau of Labor Statistics, U.S. import prices rose 1.1 percent in December 2010, after increasing 1.5 percent in November 2010 and 1.1 percent in October 2010. The Import prices for US advanced 4.8 percent in 2010. The price index for U.S. exports increased 0.7 percent in December 2010 and 6.5 percent over the past year of 2009.