GDP

April 28, 2022 The preliminary estimate of first quarter 2022 GDP surprisingly declined 1.4% after expanding at a steamy 6.9% pace in the fourth quarter.  But it would be a serious mistake to view the single-quarter decline in GDP as a harbinger of recession. ...

Final Sales

April 28, 2022 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 satisfy...

Final Sales to Domestic Purchasers

April 28, 2022 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

April 28, 2022 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...