GDP

August 26, 2021 The first revision to second quarter GDP growth was 6.6% compared to the preliminary estimate of 6.5%.  First quarter growth was 6.3%.  In the second quarter GDP growth was bolstered by a continuing rebound from the GDP slump in the second quarter of...

Final Sales

August 26, 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

August 26, 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

August 26, 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...