GDP

November 24, 2021 The first revision to third quarter GDP was 2.1% versus a preliminary estimate of 2.0%.  Second quarter growth was 6.7%.  In the third quarter GDP growth was hit by a combination of a rising number of COVID cases, and significant supply constraints...

Final Sales

October 28, 2021 When the economy is slowing down, firms will accumulate unwanted inventories.   Those inventories still show up in GDP, but they are unsold.  Hence, GDP will be biased upwards.  Similarly, in good times businesses will reduce inventory levels to...

Final Sales to Domestic Purchasers

October 28, 2021 It is important to remember that final sales is a measure of how many domestically produced goods are sold each quarter.  But we also sell goods overseas — our exports.   And we purchase goods from other countries — our imports. In the...

Gross Domestic Purchases Deflator

October 28, 2021 There are many different deflators that are available.  This one is for gross domestic purchases which measures prices paid by U.S. residents.  It is the one measure of inflation that the Commerce Department talks about when it releases the GDP...