| Definition:
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Gross Domestic Product is the broadest measure of economic activity within the nation and is the government's primary source for determining economic growth as an annualized percentage rate. GDP replaced GNP (Gross National Product) in 1991. The main difference between the two is that GDP encompasses all goods and services produced in the United States and GNP encompasses all goods and services produced by U.S. residents but not necessarily within the U.S. GDP is determined using data for Personal Consumption, Government Expenditures, Private Investment, Inventory Growth and The Trade Balance. The report also includes the GDP deflator, a comprehensive indicator of inflation.
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| Meaning:
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GDP is the most important indicator of economic activity because of the scope of the data compiled to produce this report. Virtually all other indicators provide information for GDP. Economists and analysts use GDP data to view the overall economy in order to identify and track the economic trends taking place. The initial release of GDP data is known as the advance estimate, which is revised and released one month later as the preliminary estimate. The data goes through a final adjustment for another month and is then released as the revised estimate.
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| Weight:
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****
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| Source:
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U.S. Department of Commerce: Bureau of Economic Analysis
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| Availability:
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Report released 3-4 weeks following the reference quater
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| Frequency:
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Quarterly (revised monthly)
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| Coverage:
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1 Month Lag Factor (Data released in April is for 1Q)
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| Volatility:
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Moderate
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Impact on the Markets:
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| Interest Rates:
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GDP  =
Interest Rates
GDP  = Interest Rates
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| Fixed-income:
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GDP =
Bond Market
GDP = Bond Market
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| Equities:
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GDP =
Stock Market
GDP = Stock Market
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| Dollar:
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GDP = Dollar
GDP = Dollar
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| More Information:
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U.S. Department of Commerce: Bureau of Economic Analysis
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