Personal Income and Consumption Expenditures — Monthly

January 31, 2025 Personal consumption expenditures rose 0.7% in December after climbing 0.6% in November..  In the past year nominal spending has risen 5.7%. What we are really interested in is “real” or inflation-adjusted spending.  That is what goes into...

Employment Cost Index

January 31, 2025 The employment cost index for civilian workers climbed at a 3.6% annual rate in the fourth quarter after climbing at a 3.1% annual rate in the third quarter.    Over the course of the past year it has risen 3.8%. The employment cost index peaked at...

GDP

January 30, 2025 . The advance estimate of fourth quarter GDP was 2.3% which is slightly slower than the consensus estimate of 2.6%.  This compares to GDP growth of 3.1% in the third quarter.  Growth in the past year has been 2.5% Final sales, which is GDP excluding...

Final Sales

January 30, 2025 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

January 30, 2025 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

January 30, 2025 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...