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Spending by private domestic purchasers on final consumption and fixed investment.
The components include consumer spending and fixed investment such as business equipment, structures and housing. Inventory accumulation is excluded because the focus is final purchases rather than goods added to stocks. Net exports are also excluded, so this demand measure can include purchases of imported products. Real growth adjusts for prices; nominal growth does not.
Imagine hypothetical consumer spending of 700 billion and private fixed investment of 200 billion. Private domestic final sales total 900 billion. If businesses additionally place 30 billion of unsold products into inventory, that inventory change affects the GDP expenditure calculation but does not turn the final-sales measure into 930 billion. Similarly, extra government spending is outside these two private components.