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 surged at a whopping 7.2 percent in Q3-<% Response.Write(Year(Now)) %> while final sales spurted at a 7.8 percent rate. When the growth in final sales surpasses the rise in GDP, it means that inventories were accumulated at a slower pace and final demand is improving. Consumption expenditures accelerated, and business fixed investment continued to improve. Residential investment climbed higher. The net export deficit narrowed. Government expenditures grew more slowly than the previous quarter. Growth was significantly better than anticipated for the period but most economists are looking for slower growth in the fourth quarter.

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