Economic activity mainly represents how the economy is doing. It deals with questions like the ups down that occurs in the finance sector, banks, investment sector, markets, inflation, etc. Not only this but because of the role of the economy in social growth, it also focuses on eliminating social weaknesses due to poverty and unemployment.

The foremost indicator of economic activity is the Gross domestic product (GDP). Gross domestic product calculates the aggregate value of all the products and services produced in a country each year. It is also measured quarterly. A steady increase in the GDP indicates that the economic activity is growing; a healthy indicator. In contrast, if the figures given are falling, it means that the economy is contracting. The components based upon which the GDP is measure are investment, consumption, imports, exports and the government expenditure.

Secondly, unemployment is also necessary to determine the condition of economic activity. It measures how many people are there who are willing but are unable to find as well as avail the opportunities. This is a huge problem. Additionally, the inflation rate also has a huge influence because it determines the prices at which goods and services are available. High rates mean rising inflation which snatches the purchasing power of people.

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