Strengths Release provides the single most encompassing picture of economic activity available. Provides estimates of output based on both demand and supply. Combined with employment data, GDP gives an important measure of productivity growth. A big increase in inventories indicates that supply outstripped demand, which has negative implications for future growth. Because data is released on a quarterly basis, it is not as timely as monthly indicators of economic activity.
Biases exist in the measurement of prices is difficult.
This probably results in an underestimation of real output growth and productivity, particularly for production of services. Data is not available regionally. The BEA constructs two complementary measures of GDP, one based on income and one based on expenditures. GDP is measured on the product side by adding up the labor, capital, and tax costs of producing the output. On the consumption side, GDP is measured by adding up expenditures by households, businesses, government and net foreign purchases.