3 Key Signs the Economy Is Actually Improving
3 Key Signs the Economy Is Actually Improving
October 17, 2023 By Andrew Lisa
The U.S. economy was approaching $22 trillion when the pandemic hit in 2020. The virus sent the country’s gross domestic product (GDP) cratering below $19.5 trillion for the first time since 2017. But starting in the second quarter of the pandemic’s first year, the massive American economy — the biggest and most complex in world history — reversed course and started climbing skyward again.
GDP, however, is just one of the key economic indicators that give economists and laypeople alike an idea of whether things are moving in the right direction. If you’re curious about the country’s economic direction, these are the indicators to watch.
Also see which states are doing well and which are struggling.
The Importance of the US GDP
Gross domestic product (GDP) is the yardstick that measures economic growth. Perhaps the most important of all the economic indicators, GDP represents the combined market value of all finished goods and services produced within a specific geographic region — in this case, the United States — in a certain period of time.
GDP serves as an economy’s report card. When the GDP is growing, businesses and employees alike generally do better. When it’s stagnant or receding, the economy is contracting and headed toward a recession.
Profits from 2023’s latest quarter — taking into account corporate profits with inventory valuation and capital consumption adjustments — went up $6.9 billion.
“Despite all the curveballs that COVID-19 threw our way, the economy has held its ground remarkably well,” said Joe Camberato of National Business Capital. “When you put it all together — businesses eager to borrow for growth, companies still in hiring mode, low unemployment, the housing market standing tall and people traveling — none of these indicators shout ‘recession.’ They scream ‘growth’ if you ask me.”
Unemployment Rate Matters
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