Picturing Deconstructed GDP Growth

This is what pundits will be debating ...

But here is a better look at the components adding to (and subtracting from) growth ...

And a slightly longer term perspective ...

Things I see:

• Inventories are a drag. Growth would be 3.8 this quarter if they were stable.
• Residential fixed investment (RF) has been the major drag for over two years.
• Imports have gone from a drag 10 quarters ago to a positive this year.
• Consumption growth seems unstoppable. (Can that last?)

Hat tip to Jim Hamilton (econbrowser.com) for the idea. He's been making charts like this for a long time. All I did was tweak the design.

Comments

[drew]

Too much noise on these charts. Choose what you want to make your point with.