Introduction
General Motors has over the years dominated the auto industry as the largest auto maker until recently when it is surpassed by Toyota. It has been economic indicator in US economy based of the number of employees it employs as well as its contribution to economic development in other perspective. This paper succinctly analyses four macro economic indicators which best assess the condition of General Motors.
Economic Indicators: Retail Sales Report
Retail Sales is a comprehensive economic indicator which tracks the dollar value of merchandise sold within the retail business. This indicator does this by sampling companies and business which operates in the business of selling end products to consumers. The data collection is carried out using mail catalogs and vending machines. In the development of this report all companies are involved. This economic indicator in relation to GM is relevant in the assessment in that it clearly shows the sales in the auto industry. This data is relevance in the analysis of GM performance.
Consumer Price Index
Economic Indicators: The Consumer Price Index (CPI) is an inflationary guide (De Bruyn, 2000). It involves the analysis of basket goods uses and analyses base of products yearly and lays emphasis on the goods bought daily. This economic indicator has got two CPI figures. That is the urban wage earners and the clerical job oriented employees. This economic indicator is relevant in the assessment of GM condition.
In this analysis, a current base year is selected and applied which will clearly show changes of consumer Price Index on a percentage basis. In addition, Chain-Weighted CPI is shown along with the Core CPI. In this case, when a consumer purchases one product over another because of a price rise in the first product, chain-weighted figures depict this change in buying. It is detailed in its presentation and has got more relevant information one may use for planning. This economic indicator is used for various functions, for instance; in the adjustment of the pensions, Medicare and cost of living to insurance policy (Mostert, Oosthuizen, Smith, and Van Der Vyver, 2002).
Economic Indicators: Productivity Report
This macro economic indicator measures the level of output per unit labor (Gutiérrez, 2003). “In this line, output is measured by using previously-released gross domestic product (GDP) figures; input is measured in man hours worked and the costs of that labor in the economy” (Mostert, Oosthuizen, Smith, and Van Der Vyver, 2002). Percentage changes are normally presented in yearly rates. In addition, separate productivity rates are given to business sector and manufacturing. In this case, manufacturing sector is put separate. This is because total amount of output is used instead of GDP figures. This depicts the highest volatility rate. In the analysis of GM condition, productivity report will give out its economic condition and performance.
The Consumer Price Index (CPI) is one of the best economic indicators in analyzing the economic situation of General Motors. This is because it is the most detailed economic indicator which shows all the economic variables. The recent consumer price index release has got a real implication to the business situation of the company. The increase in inflation rate has impacted on the adjustment of Medicare of employees. The food index rose to 0.2 percent in January while food at home index increased to 0.4 on the on the hand, dairy products increased to the level of 2.1. This indices are important for the role of planning and managerial purposes.
Conclusion
Macro economic indicators remain fundamental in planning for excellence performance. General Motors has continuously analyzed its macro economic indicators to understand the existing market conditions. General Motors uses these economic indicators not only to analyze its performance but also to set a record in its contribution to economic development.
References
Mostert, J.W., Oosthuizen, A.G., Smith, P.C. and Van Der Vyver.T.C. (2002). Macro-Economics: A Southern African Perspective. Juta and Company Ltd.
Gutiérrez, M. (2003). Macro-economics: making gender matter: concepts, policies and institutional change in developing countries. Zed Books.
De Bruyn, S.M. (2000). Economic growth and the environment: an empirical analysis. Springer.