Long Term Perspective
GDP measures total domestic production quarterly. Final sales reflect demand by consumers, businesses, and government. When final sales grow much faster than GDP for at least two quarters, it signals the need to rebuild inventories. That means production increases and so does GDP. Notice that over the long run, real final sales and real GDP grow by roughly the same magnitude.

Short Term Perspective
The Commerce Department revised its estimate for third quarter real GDP to 2.2 percent annualized from the initial 1.6 percent. Economic activity moderated overall from the sizzling first quarter pace, dampened by a slower rate of personal consumption expenditures as well as a slower pace of investment spending and an outright drop in residential investment spending.