GDP (Gross Domestic Product)

GDP is the broadest measure of economic activity. In the US it is published quarterly by the Bureau of Economic Analysis, with an advance estimate about a month after the quarter ends, followed by revisions. Growth is typically reported as a seasonally adjusted annualized rate.

GDP can be broken down by spending: consumer spending (the largest part in the US), business investment, government spending and net exports. Real GDP removes the effect of inflation, which is why it is used to judge actual growth.

For investors, GDP growth is linked to corporate revenues and earnings over time, and it shapes expectations for interest rates and employment. Strong growth can lift profits but also raise inflation concerns; weak or negative growth can signal a recession.

Example: if real GDP grows 0.5% from one quarter to the next, the annualized growth rate is about 2%. A common informal definition of recession is two consecutive quarters of negative real GDP growth, though the official US call uses broader data.