GDP

November 30, 2022 The revised estimate of third quarter was +2.9% compared to the preliminary estimate of  +2.6% .  GDP declined 0.6% in the second quarter and 1.6% in the first quarter.  Many people believe that two consecutive declines in GDP is a recession.  While...

Final Sales

November 30, 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...

Final Sales to Domestic Purchasers

November 30, 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

November 30, 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...