The Bureau of Economic Analysis is responsible for assessing the amount of goods and services produced in the nation. Put another way, the gross domestic product, commonly referred to as the GDP, measures economic output. The GDP is expressed as a percentage increase or decrease from the prior quarter. GDP is the compilation of four factors: net exports, consumption, investment and government purchases. The government attempts to keep a healthy ratio between national debt and its GDP.
The Bureau of Economic Analysis reports international transactions data quarterly. The data reveal deficits or surpluses in the current, capital and financial accounts. The amount of goods and services from other nations that is consumed with respect to how much is exported is of great interest to economists. The United States tends to import far more goods than it exports, while China exports far more than it imports. Despite the deficit in goods imported, the U.S. usually shows a surplus in services. Hence, the U.S. is regarded as a "service driven economy."
Because one part of the economic growth equation is consumption, the number of durable goods manufactured and sold in a given month provides insight into the economy. Examples of durable goods are cars, appliances and televisions. The Census Bureau gathers the manufacturers' inventory, order and shipment data and reports these figures monthly. If government programs are in place to stimulate the consumption of durable goods, this economic indicator might be artificially inflated and therefore unreliable. Two such programs implemented during the Obama administration were "Cash for Clunkers" and "Dollars for Dishwashers." Upon the program's cessation, this indicator could show a decline.
The percent change in personal income is another economic indicator. Levels of personal income give insight into other areas of the economy, like employment and wages. For instance, high levels of unemployment will reduce average personal income. The percent change in disposable income shows the effects of higher taxation, food prices and savings. The U.S. Department of Commerce's Bureau of Economic Analysis reports this data monthly.