Final sales of domestic product grew at a 5.8% annualized rate with the difference between growth in sales and the growth in production coming from a “negative contribution from private inventory investment”. Could this news be a harbinger of an export and investment led recovery, which would might increase the employment to population ratio to 63% by year end? One can only hope!
For the third quarter, final sales of domestic product grew at a 4.4% annualized rate. Hopefully, this means we will continue to inch closer to full employment. We might also note that government purchases, which had been growing rather slowly, grew at a 3.2% annualized rate. With strong consumption growth, this means the low national savings rate remains low.