GDP

June 25, 2026 The final estimate of first quarter GDP growth is 2.1% versus the second estimate of  1.6% and the preliminary estimate of 2.0%.   GDP rose 0.5% the fourth quarter.  The war with Iran reduced growth late in the quarter. Final sales is GDP less the change...

Final Sales

June 25, 2026 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

June 25, 2026 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

June 25, 2026 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 report.  ...