Free Trial

Safari Books Online is a digital library providing on-demand subscription access to thousands of learning resources.


  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 11 - Personal Income and Outlays > HOW TO USE WHAT YOU SEE

HOW TO USE WHAT YOU SEE

The data in the monthly Personal Income and Outlays reports supply the raw material for the analyses in the quarterly GDP report. To come up with the quarterly figures, the BEA simply averages the monthly numbers recorded for each data category. Because the GDP report isn’t published until about a month after the end of the record quarter, economists (as well as some analysts and money managers) keep a running tab of the monthly consumer spending figures to approximate the value of this important contributor to economic activity.
Because personal incomes and expenditures are so critical to the overall pace of economic activity, economists attempt to predict what the report will show before it is released. One way they do this is to go straight to the data sources. The largest source for monthly expenditures information is the Advance Monthly Sales for Retail and Food Services report. Spending on some retail goods, though, is more significant than that on others. Durable goods, as noted above, are more economically sensitive than nondurables. Among durable goods, some are better as predictors of macroeconomic conditions. Wall Streeters, for instance, watch the “RV indicator.” Recreational vehicles, or RVs, are usually purchased out of discretionary or unessential in....

  

You are currently reading a PREVIEW of this book.

                                                                                        

Get instant access to over
$1 million worth of books and videos.

  

Start a Free Trial