Long Term Perspective
GDP measures total domestic production quarterly. Final sales reflect demand by consumers, businesses, and government. When final sales grow much faster than GDP for at least two quarters, it signals the need to rebuild inventories. That means production increases and so does GDP. Notice that over the long run, real final sales and real GDP grow by roughly the same magnitude.

Short Term Perspective
Real GDP declined at a 1.1 percent rate in the third quarter of 2001, the largest decline since the recession of 1990-91. Real final sales edged down at a 0.3 percent rate during this period. The National Bureau of Economic Research officially declared March 2001 as the peak of the business cycle - meaning that the current recession began in April.

Real GDP vs. Final Sales   •   Real Consumer Spending vs. Real Income   •   Debt Burden vs. Savings Rate

Business Fixed Investment vs. Net Cash Flow   •   New Orders   •   Housing Starts vs. Mortgage Rates

Merchandise Exports vs. Trade Weighted Dollar   •   Merchandise Imports vs. Trade Weighted Dollar