An Analysis of the Interrelationship Between Various Economic Indicators and Their Overall Effect on the U.S Economy

Abstract

The United States economy is the largest economy in terms of monetary value and the second largest in terms of purchasing power parity (PPP). As a result, various economic indicators help the United States reflect on the previous, current, and future conditions of the economy and help the country remain a successful economy and improve economic conditions. Various reputable resources provide credible information on the numerous economic indicators. The main resources used for the purpose of this paper include Automatic Data Processing National Employment report and Salaries and Wages Growth, World Trade Organization, The Conference Board, Bureau of Labor Statistics, Congressional Budget Office, National Federation of Independent Business, United States Census, Bureau of Economic Analysis, and The Secrets of Economic Indicators. These resources have been utilized to review various economic indicators and examine recent past, present, and short-term forecasted conditions of the United States economy.

According to the U.S Bureau of Economic Analysis, the US economy experienced its strongest growth rate in the recent quarter in the three months up to June of 2016 (“Trading Economies”, 2016). The health of the economy can be reflected using all of the economic indicators that have been analyzed in this paper. When there are changes in GDP, employment, personal income and spending, existing home sales, small business, international trade in goods and services, interest rates, and import and export prices, conclusions can be drawn about the overall behavior of the economy. This research has revealed how indicators can be related to each other to predict the status of the United States economy. The paper will assist policy makers, academia and people engaged in macro economic planning to determine the importance of positive economic indicators in spurring growth of the U.S economy.

Keywords: economic indicators, international business, import and export, macro economic indicators

JEL Classification: A, B, C, D, E, F, G, H O, P