What is it?
Goods-adjusted gross domestic product (GDP) looks at some of the GDP figures that are relevant to the freight economy. The GDP figures released by the Bureau of Economic Analysis face some shortcomings as it relates to addressing freight conditions; GDP is primarily made up of service sector activity and excludes imported goods from the final number.
Goods-adjusted GDP looks at private final goods demand in the economy. It excludes services and non-tangible goods from the calculation and does not exclude imported goods.
Formula: Goods consumption + Nonresidential fixed investment in equipment + Nonresidential fixed investment in equipment + residential fixed investment + goods exports.
The following tickers are in SONAR to show the various components of goods-adjusted GDP:
GAGDP.USA: Total goods-adjusted GDP
RGCON.USA: Real goods consumption
REINV.USA: Real fixed investment, equipment
RGEXP.USA: Real goods exports
RGIMP.USA: Real goods imports
RSINV.USA: Real fixed investment, structures
The year-over-year growth rates are also included in SONAR with the following tickers: GAGDPY, RGCONY, REINVY, RGEXPY, RGIMPY, RSINVY.
Who is interested?
Anyone that has an interest in the broader macroeconomic environment that guides the freight economy
What does it tell me?
The broader goods-adjusted GDP values give a better representation of freight activity in the economy by looking at the demand for goods. Other factors should be considered when looking at the freight market, such as inventory trends and government activity, but the final demand for goods is a good starting point for understanding freight volumes during any given period. In addition, a look at the various components of goods-adjusted GDP will illustrate what areas of the freight economy are driving overall volume performance.
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