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Meaning of the word “Alhamdulillah”

When one asks another how they are doing, a very common response is “Alhamdulillah”. My question(s) is/are:
* Is this answer appropriate? What does it exactly mean?
* Is its usage mostly traditional nowadays?


“Alhamdulillah” is a perfect answer to a question relating to one’s state of affairs, provided the the who says it realy means it. However, we tend to say a few things as a matter of routine. I don’t think that there is anything seriously wrong with it unless one gets so habitual in giving that routine answer that the real meanings of the expression are completley lost. An even worse scenaro could be if one is using this expression to impress others.
One the other hand, the good thing about a routine answer like Alhamdulillah is that even if sometimes one is not using it with full awareness of its real meanings, one at least gets the opportunity of being reminded of it when it is used. What the answer generally speaking means is this:
“I am very thankful to God Almighty for whatever He has done to me. My condition, thanks to Him, is perfectly okay.”