GDP

March 26, 2020 The preliminary, revised, and final estimates of fourth quarter GDP growth all came in at 2.1% which was identical to the 2.1% pace registered in the third quarter.  We  continue to expect GDP growth of 2.4% this year. Final sales, which is GDP...

Final Sales

March 26, 2020 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

March 26, 2020 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

March 26, 2020 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...