GDP

March 25, 2021 The final estimate of fourth quarter GDP growth came in at 4.3% compared to a revised estimate of 4.1% and a preliminary estimate of 4.0%.  That compares to a 31.4% decline in the second quarter followed by 33.4% growth in the quarter .  The swings in...

Final Sales

March 25, 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 satisfy...

Final Sales to Domestic Purchasers

March 25, 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

March 25, 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...