Top Trump administration officials are arguing that it is misleading to include government spending in the quarterly tally of GDP. It sets up a clash between the administration and economists over how to calculate the broadest measure of economic activity.

Commerce Secretary Howard Lutnick says he could take government spending out of his agency's reports on gross domestic product.

Government spending makes up 6% of total gross domestic product. And besides, spending cuts come with economic ripple effects.

A new analysis shows that the top 10% of earners are behind almost half of all consumer spending, which is almost 70% of GDP.

Government spending is traditionally included in the GDP because changes in taxes, spending, deficits and regulations by the government can impact the path of overall growth.

The Commerce Department in its most recent GDP report, showed that the economy grew at an annual rate of 2.3% in the final three months of 2024