Key GDP Takeaway: Ever Weakening Real Final Demand

By: Mike Shedlock | Mon, Oct 31, 2016
Print Email

What's the most important metric in GDP report on Friday?

Caroline Baum tweets that it's private final demand, the slowest in three years, excluding the first quarter of 2016.

Caroline Baum Tweet


Real Final Sales to Private Domestic Purchaser

Real Final Sales to Private Domestic Purchaser


Ever Weakening Real Final Demand

A slightly different metric better highlights ever-weakening demand.


Real Final Sales of Domestic Product % Change From Year Ago

Real Final Sales of Domestic Product % Change From Year Ago

I downloaded that data into an Excel spreadsheet capturing the yearly high for each year since 1950.


Real Final Sales of Domestic Product - Yearly Highs Since 1950

Real Final Sales of Domestic Product - Yearly Highs Since 1950

This is an ominous looking trend.

Real final sales of domestic product compared to the previous year trend lower as deficit spending and Fed printing rise.

 


 

Mike Shedlock

Author: Mike Shedlock

Mike Shedlock / Mish
Mish Talk

Mike Shedlock

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility.

Copyright © 2005-2017 Mike Shedlock

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com