---
title: Economic Analysis
description: Using FRED for comprehensive economic analysis and research
icon: 'chart-mixed'
---
# Economic Analysis Use Case
Leverage FRED MCP Server for comprehensive economic analysis, from macroeconomic forecasting to sectoral performance evaluation.
## Overview
Economic analysts use FRED data to:
- Monitor current economic conditions
- Analyze historical trends
- Identify relationships between indicators
- Support forecasting and projections
- Evaluate policy impacts
## Macroeconomic Analysis
### Business Cycle Analysis
Track key indicators across the cycle:
<Steps>
<Step title="Leading Indicators">
```javascript
// Building permits
{ "series_id": "PERMIT" }
// Initial jobless claims
{ "series_id": "ICSA" }
// Yield curve spread
{ "series_id": "T10Y2Y" }
// Consumer expectations
{ "series_id": "UMCSENT" }
```
</Step>
<Step title="Coincident Indicators">
```javascript
// GDP
{ "series_id": "GDP" }
// Employment
{ "series_id": "PAYEMS" }
// Industrial production
{ "series_id": "INDPRO" }
// Retail sales
{ "series_id": "RSXFS" }
```
</Step>
<Step title="Lagging Indicators">
```javascript
// Unemployment
{ "series_id": "UNRATE" }
// Unit labor costs
{ "series_id": "ULCNFB" }
// Consumer credit
{ "series_id": "TOTALSL" }
```
</Step>
</Steps>
### GDP Decomposition
Analyze sources of growth:
```javascript
// Total GDP
const gdp = {
"series_id": "GDP",
"observation_start": "2020-Q1",
"units": "pca"
};
// Components
const components = {
consumption: "PCEC", // Personal consumption (68%)
investment: "GPDI", // Gross private investment (17%)
government: "GCE", // Government spending (17%)
net_exports: "NETEXP" // Exports - Imports
};
```
<Tip>
GDP = C + I + G + (X - M)
Track component contributions to identify growth drivers
</Tip>
## Inflation Analysis
### Multiple Measures
Compare different inflation indicators:
<Tabs>
<Tab title="Consumer Prices">
```javascript
// Headline CPI
{
"series_id": "CPIAUCSL",
"units": "pc1"
}
// Core CPI (ex food & energy)
{
"series_id": "CPILFESL",
"units": "pc1"
}
// Services CPI
{
"series_id": "CUSR0000SAS",
"units": "pc1"
}
// Goods CPI
{
"series_id": "CUUR0000SAC",
"units": "pc1"
}
```
</Tab>
<Tab title="Producer Prices">
```javascript
// Headline PPI
{
"series_id": "PPIACO",
"units": "pc1"
}
// Core PPI
{
"series_id": "PPILFE",
"units": "pc1"
}
```
</Tab>
<Tab title="PCE Deflator">
```javascript
// PCE Price Index (Fed's preferred)
{
"series_id": "PCEPI",
"units": "pc1"
}
// Core PCE
{
"series_id": "PCEPILFE",
"units": "pc1"
}
```
</Tab>
<Tab title="Import/Export Prices">
```javascript
// Import prices
{
"series_id": "IR",
"units": "pc1"
}
// Export prices
{
"series_id": "IQ",
"units": "pc1"
}
```
</Tab>
</Tabs>
### Inflation Expectations
Monitor forward-looking indicators:
```javascript
// University of Michigan 1-year ahead
{
"series_id": "MICH",
"observation_start": "2020-01-01"
}
// 5-year breakeven rate
{
"series_id": "T5YIE",
"observation_start": "2020-01-01"
}
// 10-year breakeven rate
{
"series_id": "T10YIE",
"observation_start": "2020-01-01"
}
```
## Labor Market Analysis
### Employment Dynamics
```javascript
// Comprehensive labor market dashboard
const labor_dashboard = {
// Headline indicators
unemployment: "UNRATE",
payrolls: "PAYEMS",
participation: "CIVPART",
// Broader measures
u6_rate: "U6RATE",
employment_ratio: "EMRATIO",
part_time_economic: "LNS12032194",
// Flows
initial_claims: "ICSA",
continuing_claims: "CCSA",
job_openings: "JTSJOL",
quits: "JTSQUL",
// Wages
avg_hourly_earnings: "CES0500000003",
real_earnings: "CES0500000030",
unit_labor_costs: "ULCNFB"
};
```
### Sectoral Employment
Track employment by industry:
<CardGroup cols={2}>
<Card title="Manufacturing" icon="industry">
```javascript
{ "series_id": "MANEMP" }
```
</Card>
<Card title="Construction" icon="helmet-safety">
```javascript
{ "series_id": "USCONS" }
```
</Card>
<Card title="Retail Trade" icon="cart-shopping">
```javascript
{ "series_id": "USTRADE" }
```
</Card>
<Card title="Healthcare" icon="heart-pulse">
```javascript
{ "series_id": "CES6500000001" }
```
</Card>
<Card title="Professional Services" icon="briefcase">
```javascript
{ "series_id": "USPBS" }
```
</Card>
<Card title="Leisure & Hospitality" icon="utensils">
```javascript
{ "series_id": "CES7000000001" }
```
</Card>
</CardGroup>
## Financial Conditions
### Interest Rate Analysis
```javascript
// Yield curve
const yield_curve = {
one_month: "DGS1MO",
three_month: "DGS3MO",
six_month: "DGS6MO",
one_year: "DGS1",
two_year: "DGS2",
five_year: "DGS5",
ten_year: "DGS10",
thirty_year: "DGS30"
};
// Spreads
const spreads = {
ten_two: "T10Y2Y",
ten_three_month: "T10Y3M",
bbb_treasury: "BAMLC0A4CBBB"
};
```
### Financial Stress Indicators
```javascript
// St. Louis Fed Financial Stress Index
{
"series_id": "STLFSI2",
"observation_start": "2020-01-01"
}
// TED Spread
{
"series_id": "TEDRATE",
"observation_start": "2020-01-01"
}
// VIX (market volatility)
{
"series_id": "VIXCLS",
"observation_start": "2020-01-01"
}
```
## Sectoral Analysis
### Housing Market
```javascript
const housing_metrics = {
// Supply
starts: "HOUST",
permits: "PERMIT",
under_construction: "UNDCONTSA",
// Demand
existing_sales: "EXHOSLUSM495S",
new_sales: "HSN1F",
// Prices
case_shiller: "CSUSHPISA",
fhfa_index: "USSTHPI",
median_price: "MSPUS",
// Affordability
mortgage_rate: "MORTGAGE30US",
affordability_index: "FIXHAI"
};
```
### Manufacturing Sector
```javascript
// Production
{
"series_id": "IPMAN",
"observation_start": "2020-01-01",
"units": "pc1"
}
// Orders
{
"series_id": "AMTMNO",
"observation_start": "2020-01-01"
}
// Capacity utilization
{
"series_id": "MCU",
"observation_start": "2020-01-01"
}
// PMI
{
"series_id": "MANEMP",
"observation_start": "2020-01-01"
}
```
## Regional Analysis
### State Comparisons
```javascript
// Compare unemployment across states
const states = ["CA", "TX", "NY", "FL", "IL"];
states.forEach(state => {
fred_get_series({
series_id: `${state}UR`,
observation_start: "2020-01-01"
});
});
// State GDP
states.forEach(state => {
fred_get_series({
series_id: `${state}NGSP`,
observation_start: "2020-Q1"
});
});
```
### Metro Area Analysis
```javascript
// Major metro unemployment rates
const metros = {
nyc: "LAUMT364190",
la: "LAUMT064910",
chicago: "LAUMT121410",
dallas: "LAUMT481910",
houston: "LAUMT482610"
};
```
## Recession Analysis
### NBER Dating
```javascript
// Official recession indicator
{
"series_id": "USREC",
"observation_start": "2000-01-01"
}
// Sahm Rule Recession Indicator
{
"series_id": "SAHMREALTIME",
"observation_start": "2000-01-01"
}
```
### Recession Depth and Duration
<Steps>
<Step title="Identify Peak">
Find pre-recession highs in key indicators
</Step>
<Step title="Track Trough">
Identify lowest points during recession
</Step>
<Step title="Measure Recovery">
Calculate time to return to pre-recession levels
</Step>
<Step title="Compare Recessions">
Analyze differences in depth, duration, and recovery shape
</Step>
</Steps>
## International Comparisons
### Global Indicators
```javascript
// OECD data
const global = {
// Composite leading indicators
us_cli: "USALOLITONOSTSAM",
oecd_cli: "USALOLITONOSTSAM",
// GDP
g7_gdp: "NAEXKP01",
china_gdp: "CHNNGDP",
eu_gdp: "CLVMNACSCAB1GQEU272020",
// Trade
global_trade: "WLDXTIMVA"
};
```
## Best Practices
<AccordionGroup>
<Accordion title="Use Multiple Indicators">
Don't rely on single metrics. Cross-validate with complementary series.
</Accordion>
<Accordion title="Check Data Revisions">
Economic data undergoes revisions. Use vintage data for historical analysis.
</Accordion>
<Accordion title="Understand Seasonal Patterns">
Use SA data for trends, NSA for actual seasonal patterns.
</Accordion>
<Accordion title="Consider Lead Times">
Account for reporting lags and indicator relationships.
</Accordion>
<Accordion title="Document Methodology">
Record transformation choices and analysis assumptions.
</Accordion>
</AccordionGroup>
## Analysis Workflow
<Steps>
<Step title="Define Question">
Clearly state what you're analyzing
</Step>
<Step title="Identify Indicators">
Select relevant series for your analysis
</Step>
<Step title="Gather Data">
Retrieve series with appropriate transformations
</Step>
<Step title="Analyze Trends">
Look for patterns, correlations, and anomalies
</Step>
<Step title="Validate Findings">
Cross-check with alternative indicators
</Step>
<Step title="Document Results">
Record methodology and conclusions
</Step>
</Steps>
## Next Steps
<CardGroup cols={2}>
<Card
title="Financial Research"
icon="chart-candlestick"
href="/use-cases/financial-research"
>
Markets and asset analysis
</Card>
<Card
title="Policy Analysis"
icon="landmark"
href="/use-cases/policy-analysis"
>
Policy impact evaluation
</Card>
<Card
title="Examples"
icon="code"
href="/examples/economic-indicators"
>
Practical code examples
</Card>
<Card
title="API Reference"
icon="book"
href="/api-reference/overview"
>
Tool documentation
</Card>
</CardGroup>
