Seasonally Adjusted Annual Rate (SAAR)

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Definition of 'Seasonally Adjusted Annual Rate (SAAR)'

The seasonally adjusted annual rate (SAAR) is a statistical measure that is used to remove the effects of seasonal fluctuations from economic data. This is done by taking the average of the data over a period of time that is long enough to capture all of the seasonal variations. The resulting figure is then multiplied by 12 to express it as an annual rate.

The SAAR is used to make comparisons between different time periods and to identify trends in economic data. It is also used to make forecasts of future economic activity.

One of the most common uses of the SAAR is to measure the growth of real gross domestic product (GDP). GDP is a measure of the total value of goods and services produced in a country in a given period of time. The SAAR is used to measure the growth of GDP on an annual basis.

Another common use of the SAAR is to measure the unemployment rate. The unemployment rate is a measure of the percentage of the labor force that is unemployed. The SAAR is used to measure the unemployment rate on an annual basis.

The SAAR is a useful tool for analyzing economic data. However, it is important to remember that it is only a statistical measure and does not reflect the actual state of the economy.

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