The relationship between the Tenth District economy and the national economy

Information about the national economy is typically available well before information about the regional economy. For example, national employment data are usually released about a month before data for individual states, and the state data are often revised subsequently, resulting in a lag of two months or more for accurate information. In addition, output data for the states are released several years after output data for the nation. This lag in economic data makes it difficult for regional policymakers and business planners to gauge current regional economic conditions and to make decisions based on the region's outlook. Moreover, specialized state or regional economic data are often more difficult and costly to obtain than the widely publicized national economic data.> If the Tenth District economy closely tracks the national economy, the early national data could give advanced signals about regional economic conditions and perhaps even give clues about the future course of the district economy. Smith explores the relationship between the district and national economies and finds that the district economy generally moves with the national economy. He also finds that information about past changes in the national economy can help predict changes in the district economy.