This Is The Leading Indicator To Watch For In Tomorrow's GDP Number

clueless shopping

GDP data is released tomorrow at 8:30 AM ET. And while this is a lagging indicator, it does include some elements that can provide insight into the prognosis of the economy.

From Deutsche Bank:

More important than the headline though is the mix in growth, meaning how much is final demand (also known as final sales) and how much is inventory building. Generally speaking, more of the former is always preferred to the latter with respect to how future real GDP growth is likely to unfold.

Final demand includes goods and services bought by consumers, businesses, and the government.

So, beyond watching for the headline number to hit 2.0%, keep your eye on the size of final sales, which Deutsche Bank thinks should hit 3.0%.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at

Tagged In

gdp moneygame-us