Advance GDP

Who: Commerce Department

When: First Month of each Quarter

What: GDP (Gross Domestic Product) is a measure of the total production and consumption of goods and services in the US. GDP has two complementary measures: one based on income and the other on expenditures. The two measures should be equal but the problems with the data collection have left some discrepancies. A deflator is used to convert current prices into a constant-dollar GDP figure. The GDP report gives a complete picture of the state of the economy as well as estimates for future output based on supply and demand.

Advance GDP is the initial reading each quarter. As more data is collected, the Preliminary GDP release reflects the first revision. The Final GDP report for the prior quarter is released near the end of the current quarter.

Why: GDP is a significant report for several reasons. It is the most encompassing picture of economic activity and when paired with the employment report gives a picture of productivity growth. The data is used to define business cycle peaks and troughs. Higher GDP points to accelerated inflation while lower GDP indicates a weak economy