GDP Growth of 4.2% Breakdown

CFA Level I Economics
#1

Hey all,

I want to apply what I’ve covered so far in the economics section of the CFA by taking a real life example, the 4.2% growth in GDP in Q2 of 2018.

After doing more research online, I came out to this breakdown:

  • Consumer spend +3.8% - Business investment +8.5% - Residential investment -1.6% - Government outlays +2.3% - - Net trade +1.2ppt - Inventories -1.0ppt

I guess most of them are self explanatory, but what I seem to struggle with understanding is the inventory. At -1%, how exactly is this measured if all unsold inventory still are embedded in GDP?

#2

That’s GDP growth brah, so the all those percentages are changes from the previous values.