Description: The Gross Domestic Product is a gauge of the overall economic activity- expressed as a dollar figure. It is the value of everything produced in the economy.

Released: First releases are in the final week of January, April, July, and October at 8:30 am. Revisions are released one month later.

Calculation: The GDP figure is calculated form the National Income and Product Accounts (NIPA). Spending calculations are taken from major components of the economy. The core components of GDP are: Personal Consumption, Gross Private Domestic Investment, Net Exports, and Government Spending. The GDP is measured by simply adding up all of the spending in these areas.

Personal Consumption: All spending by consumers on goods and services; this subcomponent of GDP accounts for nearly 70% of total GDP

Gross Private Domestic Investment: Accounts for business spending and includes both fixed investments and changes in inventory investment; 15% of total GDP

Net Exports: Similar to the trade balance; goods and services that are made in the U.S. and exported to other countries are added to GDP whereas goods and services that are imported are subtracted; since the 1970s, net exports have been a negative number and a drag on GDP because the U.S. spends more on imports than it produces in exports; total imports have increased to 15% of GDP whereas exports are 10% of GDP

Government Spending: Total government expenditures are divided up into a third for federal spending and the rest on local & state purchases; Government spending generally accounts for 18% of GDP

Key Points: GDP represents final output value of all goods produced in the country. People watch the GDP figure closely to determine the health and direction of the overall economy. The GDP index is calculated relative to a base year for year over year comparison.

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