What is Macro Accounting?

Macro accounting, also called national accounting, is a method of calculating the economic activity of a country or region.

How Does Macro Accounting Work?

In the United States, federal government agencies typically use macro accounting to calculate employment rates, inflation rates and many other statistics that indicate how the country's economy is faring. State agencies might also use macro accounting to make similar determinations for states or entire regions.

Why Does Macro Accounting Matter?

The goal of macro accounting is to summarize the whole economic picture. Accordingly, the markets watch this information closely because it often signals the overall direction of an economy and thus can provide buy and sell signals for a variety of industries or portfolio strategies.