GDP

February 25, 2021 The revised estimate of fourth quarter GDP growth came in at 4.1% compared to 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 .  Both swings in those two earlier quarters...

Final Sales

February 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...

Final Sales to Domestic Purchasers

February 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

February 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...