GDP GROWTH RATE
GDP Growth Rate: Measuring Economic Expansion or Recession
GDP growth is the broadest measure of economic health, but it is also a lagging indicator.
What GDP Measures
- Consumption
- Investment
- Government spending
- Net exports
Why Markets React Before GDP
Markets price expectations. By the time GDP confirms recession, assets have already moved.
GDP and Risk Assets
- Strong GDP supports equities
- Weak GDP boosts defensive assets
For leading indicators, traders rely on labor, inflation, and housing data.
GDP in Context: What Drives Economic Growth
GDP is the final output of multiple economic forces working together.
- Employment trends measured by Non-Farm Payrolls fuel consumer spending
- Inflation trends from CPI and PPI shape real economic growth
- Housing activity from Building Permits signals future expansion or contraction
See the full indicator framework here: US Economic Indicators Explained.
Return to the macro framework: US Economic Indicators Overview.
Analytic Dave
AnalyticalDave is a personal financial analysis portfolio that captures my Derivatives trading, stock, and investing journey. My portfolio does NOT act as a financial advisor to any community. It is only purposed for journaling my story as a self-taught trader and investor.
