Comerica Bank Economy Projections

793 Words4 Pages
Comerica Bank Economy Projections The economy is something that is always changing. The economy is defined by Mankiw as “the study of how society manages its scarce resources” (p 4, 2012). Market actions and reactions between buyers and sellers alter the state of the economy with the transactions of these resources. The US economy has gone through cycles of good and bad states. There are many economists always studying the past trends of the economy and comparing to the current state of the economy to help predict the future. Predicting the future for the economy can be beneficial to help prepare buyers and sellers the reality of the situation rather than being shocked by something drastic. It can also show what is working and what needs changing in terms of stimulating the economy. Comerica Bank thinks it is very important to provide their investing clients information on the local and global economy to allow informed decisions about investing. DEFINITIONS OF INDICIES GDP is a common measure of the health of the economy. GDP stands for Gross Domestic Product and measures the total amount of what income and expenditures everyone in the economy has. It is a measure for the flow of money within the economy because each transaction of a good has someone buying and someone selling a good. Total income should equal total expenditures in a perfect world. GDP reflects, over a specific period of time, the market value of final goods and services found within a country. GDP specifically is split up into categories of spending. These categories include Consumption, which is most spending that households make on goods and services, Investment, which is purchasing goods that will be used to produce more in the future like houses and equipmen... ... middle of paper ... ...chnologies helping in productivity, and a change in the energy and manufacturing industries (Dye, 2014). References Dye, R. (2014). The end of economic history (as we know it). The Comerica Economic Outlook. Retrieved from: http://www.mkintel.org/wp-content/uploads/2012/02/Dr-Robert-Dye-Senior-Vice-President-and-Chief-Economist-Comerica-Bank-State-of-the-US-Economy-and-Outlook-2014.pdf Johnson, D. (2014). Quarterly investment commentary. Comerica The Road Ahead. Retrieved from: http://www.comerica.com/wealth-management/Documents/Wealth%20Weekly%20Updates/2014/The_Road_Ahead.pdf Mankiw, G. (2012) Principles of Macroeconomics. Mason, OH: South-Western Cengage Learning. ISBN-13: 9780538453066 Sanabria, D. (2014). March consumer prices, retail sales. Comerica Economic Weekly. Retrieved from: http://blog.comerica.com/2014/04/15/march-consumer-prices-retail-sales/

More about Comerica Bank Economy Projections

Open Document