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NEWS RELEASE
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, THURSDAY, MARCH 27, 2008
Virginia H. Mannering:
Andrew Hodge:
Recorded message:

(202) 606-5304 (GDP)
(202) 606-5564 (Profits)
(202) 606-5306

BEA 08-12

GROSS DOMESTIC PRODUCT: FOURTH QUARTER 2007 (FINAL)
CORPORATE PROFITS: FOURTH QUARTER 2007
Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 0.6 percent in the fourth quarter of 2007,
according to final estimates released by the Bureau of Economic Analysis. In the third quarter, real
GDP increased 4.9 percent.
The GDP estimates released today are based on more complete source data than were available for
the preliminary estimates issued last month. In the preliminary estimates, the increase in real GDP was
also 0.6 percent (see "Revisions" on page 3).
The increase in real GDP in the fourth quarter primarily reflected positive contributions from
personal consumption expenditures (PCE), exports, nonresidential structures, state and local government
spending, and equipment and software that were largely offset by negative contributions from private
inventory investment and residential fixed investment. Imports, which are a subtraction in the
calculation of GDP, decreased.
The deceleration in real GDP growth in the fourth quarter primarily reflected a downturn in
inventory investment and decelerations in exports, in federal government spending, and in PCE that
were partly offset by a downturn in imports.
Final sales of computers contributed 0.16 percentage point to the fourth-quarter growth in real
GDP after contributing 0.28 percentage point to the third-quarter growth. Motor vehicle output
subtracted 0.86 percentage point from the fourth-quarter growth in real GDP after contributing 0.36
percentage point to the third-quarter growth.

NOTE.--Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise
specified. Quarter-to-quarter dollar changes are differences between these published estimates. Percent
changes are calculated from unrounded data and are annualized. “Real” estimates are in chained (2000)
dollars. Price indexes are chain-type measures.
This news release is available on BEA’s Web site along with the Technical Note and Highlights related
to this release.

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- 2-

The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 3.7 percent in the fourth quarter, 0.2 percentage point less than the preliminary estimate; this
index increased 1.8 percent in the third quarter. Excluding food and energy prices, the price index for
gross domestic purchases increased 2.3 percent in the fourth quarter, compared with an increase of 1.9
percent in the third.
Real personal consumption expenditures increased 2.3 percent in the fourth quarter, compared
with an increase of 2.8 percent in the third. Real nonresidential fixed investment increased 6.0 percent,
compared with an increase of 9.3 percent. Nonresidential structures increased 12.4 percent, compared
with an increase of 16.4 percent. Equipment and software increased 3.1 percent, compared with an
increase of 6.2 percent. Real residential fixed investment decreased 25.2 percent, compared with a
decrease of 20.5 percent.
Real exports of goods and services increased 6.5 percent in the fourth quarter, compared with an
increase of 19.1 percent in the third. Real imports of goods and services decreased 1.4 percent, in
contrast to an increase of 4.4 percent.
Real federal government consumption expenditures and gross investment increased 0.5 percent in
the fourth quarter, compared with an increase of 7.1 percent in the third. National defense decreased 0.5
percent, in contrast to an increase of 10.1 percent. Nondefense increased 2.8 percent, compared with an
increase of 1.1 percent. Real state and local government consumption expenditures and gross
investment increased 2.8 percent, compared with an increase of 1.9 percent.
The real change in private inventories subtracted 1.79 percentage points from the fourth-quarter
change in real GDP, after adding 0.89 percentage point to the third-quarter change. Private businesses
decreased inventories $18.3 billion in the fourth quarter, following increases of $30.6 billion in the third
quarter and $5.8 billion in the second.
Real final sales of domestic product -- GDP less change in private inventories -- increased 2.4
percent in the fourth quarter, compared with an increase of 4.0 percent in the third.

Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- decreased 0.4 percent in the fourth quarter, in contrast to an increase of 3.3 percent in the
third.

Gross national product
Real gross national product -- the goods and services produced by the labor and property supplied
by U.S. residents -- increased 1.9 percent in the fourth quarter, compared with an increase of 5.8 percent
in the third. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which
increased $37.6 billion in the fourth quarter after increasing $25.9 billion in the third; in the fourth
quarter, receipts decreased $12.9 billion, and payments decreased $50.5 billion.

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- 3Current-dollar GDP
Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
3.0 percent, or $103.7 billion, in the fourth quarter to a level of $14,074.2 billion. In the third quarter,
current-dollar GDP increased 6.0 percent, or $201.7 billion.
Revisions
The final estimate of the fourth-quarter increase in real GDP is the same as the preliminary
estimate issued last month, primarily reflecting a downward revision to inventory investment and
smaller downward revisions to several other GDP components that were largely offset by upward
revisions to personal consumption expenditures and to exports.

Advance
Preliminary
Final
(Percent change from preceding quarter)
Real GDP...............................................
Current-dollar GDP...............................
Gross domestic purchases price index...

0.6
3.2
3.8

0.6
3.3
3.9

0.6
3.0
3.7

Corporate Profits
Profits from current production (corporate profits with inventory valuation and capital
consumption adjustments) decreased $52.9 billion in the fourth quarter, compared with a decrease of
$20.5 billion in the third quarter. The fourth-quarter profits estimates reflect large adjustments that
raised profits in the national income and product accounts (NIPAs) relative to profits as reported in
corporate financial source data in order to account for differences in the treatment of asset write-downs
and loan-loss provisions, which are not expensed in current-production profits in the NIPAs (see
Technical Note).
Current-production cash flow (net cash flow with inventory valuation and capital consumption
adjustments) -- the internal funds available to corporations for investment -- decreased $55.7 billion in
the fourth quarter, compared with a decrease of $21.1 billion in the third.
Taxes on corporate income decreased $15.0 billion in the fourth quarter, compared with a
decrease of $20.7 billion in the third. Profits after tax with inventory valuation and capital consumption
adjustments decreased $37.9 billion in the fourth quarter, in contrast to an increase of $0.3 billion in the
third. Dividends increased $21.7 billion, compared with an increase of $23.5 billion; current-production
undistributed profits decreased $59.5 billion, compared with a decrease of $23.3 billion.

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- 4-

Domestic profits of financial corporations decreased $74.4 billion in the fourth quarter, compared
with a decrease of $32.5 billion in the third. Domestic profits of nonfinancial corporations decreased
$34.3 billion in the fourth quarter, compared with a decrease of $14.4 billion in the third. In the fourth
quarter, real gross value added of nonfinancial corporations increased, and profits per unit of real
product decreased. The decrease in unit profits reflected increases in both the unit labor and nonlabor
costs corporations incurred that were partly offset by an increase in unit prices.
The rest-of-the-world component of profits increased $55.8 billion in the fourth quarter, compared
with an increase of $26.4 billion in the third. This measure is calculated as (1) receipts by U.S. residents
of earnings from their foreign affiliates plus dividends received by U.S. residents from unaffiliated
foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign parents plus
dividends paid by U.S. corporations to unaffiliated foreign residents. The fourth-quarter increase was
accounted for by an increase in receipts and a decrease in payments.
Profits before tax with inventory valuation adjustment is the best available measure of industry
profits because estimates of the capital consumption adjustment by industry do not exist. This measure
reflects depreciation-accounting practices used for federal income tax returns. According to this
measure, domestic profits of financial and nonfinancial corporations decreased in the fourth quarter.
The decrease in nonfinancial corporations reflected decreases in wholesale trade, in manufacturing, and
in transportation and warehousing that were partly offset by increases in information and in utilities.
Within manufacturing, the decrease was more than accounted for by petroleum.
Profits before tax increased $0.2 billion in the fourth quarter, in contrast to a decrease of $51.8
billion in the third. The before-tax measure of profits does not reflect, as does profits from current
production, the capital consumption and inventory valuation adjustments. These adjustments convert
depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to
the current-cost measures used in the national income and product accounts. The capital consumption
adjustment decreased $4.1 billion in the fourth quarter (from -$237.4 billion to -$241.5 billion),
compared with a decrease of $3.0 billion in the third. The inventory valuation adjustment decreased
$49.1 billion (from -$20.3 billion to -$69.4 billion), in contrast to an increase of $34.4 billion.
Effective with this release, chained-dollar gross value added of nonfinancial corporate business
was revised beginning with 2004. The current-dollar gross value added is deflated by a revised chaintype price index calculated using the gross value added chain-type index for nonfinancial industries from
the annual revision of the GDP-by-industry accounts that were released in January 2008.

Corporate profits in 2007
Profits from current production increased 2.7 percent in 2007, compared with an increase of 13.2
percent in 2006. Domestic profits decreased 3.0 percent, in contrast to an increase of 12.3 percent. The
rest-of-the-world component of profits increased 31.2 percent, compared with an increase of 17.9
percent.
Taxes on corporate income increased 2.8 percent in 2007, compared with an increase of 15.5
percent in 2006. Profits after tax with inventory valuation and capital consumption adjustments
increased 2.6 percent, compared with an increase of 12.2 percent. Dividends increased 13.8 percent,
compared with an increase of 16.2 percent; current-production undistributed profits decreased 16.8
percent, in contrast to an increase of 5.9 percent.
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- 5-

According to the measure of profits before tax with inventory valuation adjustment, domestic profits
of financial and nonfinancial corporations decreased in 2007. The decrease in nonfinancial corporations
reflected a decrease in “other” nonfinancial that was partly offset by increases in information, in retail
trade, in manufacturing, in utilities, in transportation and warehousing, and in wholesale trade. Within
manufacturing, increases in most industries shown were partly offset by a decrease in petroleum.

*

*

*

BEA’s major national, international, regional, and industry estimates; the Survey of Current
Business; and BEA news releases are available without charge on BEA’s Web site at www.bea.gov. By
visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and
announcements.

*

*

*

Next release -- April 30, 2008 at 8:30 A.M. EDT for:
Gross Domestic Product: First Quarter 2008 (Advance)

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Table 1.—Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
Seasonally adjusted at annual rates
2005

2006

2007 r

2004
I

II

2005
III

IV

I

II

2006
III

IV

I

II

2007
III

IV

I

II

III

IV r

Gross domestic product (GDP) .................
3.1
2.9
2.2
3.0
3.5
3.6
2.5
3.1
2.8
4.5
1.2
4.8
2.4
1.1
2.1
0.6
3.8
4.9
0.6
Personal consumption expenditures ..........................
3.2
3.1
2.9
4.4
2.4
3.5
4.2
2.4
3.5
4.1
1.2
4.4
2.4
2.8
3.9
3.7
1.4
2.8
2.3
Durable goods .............................................................
4.9
3.8
4.7
5.8
1.9
7.8
7.0
2.2 11.3
6.2 –13.0 16.6
.8
5.6
3.9
8.8
1.7
4.5
2.0
Nondurable goods .......................................................
3.6
3.6
2.4
4.6
1.5
3.1
4.9
3.5
3.7
2.5
4.7
4.5
2.3
3.2
4.3
3.0
–.5
2.2
1.2
Services .......................................................................
2.7
2.7
2.8
4.1
3.0
2.9
3.4
1.9
1.8
4.4
2.6
2.1
2.7
2.0
3.7
3.1
2.3
2.8
2.8
Gross private domestic investment ............................
5.6
2.7
–4.9
2.1 20.7
8.0
6.4
5.3 –3.9
7.0 13.4
4.3
.6 –4.1 –14.1 –8.2
4.6
5.0 –14.6
Fixed investment .........................................................
6.9
2.4
–2.9
–.2 12.9
9.3
7.3
4.0
7.9
8.0
2.3
7.9 –1.9 –4.7 –7.1 –4.4
3.2
–.7 –4.0
Nonresidential .........................................................
7.1
6.6
4.7 –2.6 10.7 12.3 10.3
3.3
5.0
8.6
3.4 13.3
4.2
5.1 –1.4
2.1 11.0
9.3
6.0
Structures ............................................................
.5
8.4
12.9
–.3
6.1
3.6
–.2
2.1 –1.6 –6.3
4.8 15.0 16.4 10.8
7.4
6.4 26.2 16.4 12.4
Equipment and software ....................................
9.6
5.9
1.3 –3.4 12.4 15.5 14.3
3.8
7.4 14.5
3.1 13.0
–.1
2.9 –4.9
.3
4.7
6.2
3.1
Residential ...............................................................
6.6 –4.6 –17.0
4.0 16.7
4.2
2.4
5.3 13.1
6.9
.5
–.7 –11.7 –20.4 –17.2 –16.3 –11.8 –20.5 –25.2
Change in private inventories ..................................... .......... .......... ........... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Net exports of goods and services ............................ .......... .......... ........... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Exports .........................................................................
6.9
8.4
8.1 10.0
6.5
3.1 10.0
6.0
9.5
2.1 10.6 11.5
5.7
5.7 14.3
1.1
7.5 19.1
6.5
Goods ......................................................................
7.5
9.9
7.9
7.4
7.2
6.2
7.2
5.8 13.6
1.9 12.6 15.5
6.5
7.4
9.6
.9
6.6 26.2
3.9
Services ...................................................................
5.4
4.8
8.5 16.2
5.1 –3.4 16.8
6.5
.9
2.6
6.3
2.9
3.9
2.0 26.0
1.6
9.6
4.0 13.2
Imports .........................................................................
5.9
5.9
1.9 12.3 15.2
4.8 13.8
2.1
.8
2.1 16.2
6.9
.9
5.4
1.6
3.9 –2.7
4.4 –1.4
Goods ......................................................................
6.6
6.0
1.6 11.5 16.6
5.5 14.5
3.2
1.0
2.5 17.3
6.5
1.1
6.2
–.6
4.2 –2.9
4.8 –2.6
Services ...................................................................
2.3
5.2
3.5 16.5
8.9
1.8 10.5 –3.5
–.5
0
10.3
9.5
–.1
1.3 14.2
2.3 –1.7
1.7
5.5
Government consumption expenditures and gross
investment ..................................................................
.7
1.8
2.0
1.5
1.3
1.6 –1.8
1.3
1.2
3.2 –1.9
4.9
1.0
.8
3.5
–.5
4.1
3.8
2.0
Federal .........................................................................
1.5
2.2
1.7
6.1
2.4
6.2 –4.6
2.8
.7
8.6 –6.2
8.4 –1.6
.9
7.3 –6.3
6.0
7.1
.5
National defense .....................................................
1.5
1.9
2.8
8.1
2.0 10.9 –9.7
4.6
2.6 10.0 –11.7
6.8
2.3 –1.5 16.9 –10.8
8.5 10.1
–.5
Nondefense .............................................................
1.3
2.8
–.4
2.3
3.2 –2.7
6.5
–.8 –3.0
5.8
5.8 11.9 –8.8
6.0 –10.0
3.8
.9
1.1
2.8
State and local ............................................................
.3
1.6
2.2 –1.0
.7 –1.1
–.1
.4
1.5
0
.7
2.9
2.5
.7
1.3
3.0
3.0
1.9
2.8
Addenda:
Final sales of domestic product .................................
3.3
2.8
2.5
2.6
2.4
3.8
2.7
2.9
4.8
4.6
–.5
5.4
2.0
1.0
3.5
1.3
3.6
4.0
2.4
Gross domestic purchases .........................................
3.1
2.8
1.5
3.6
4.8
3.8
3.4
2.6
1.9
4.3
2.5
4.5
1.9
1.3
.8
1.1
2.4
3.3
–.4
Final sales to domestic purchasers ............................
3.3
2.7
1.8
3.2
3.7
4.0
3.6
2.4
3.7
4.5
.8
5.0
1.5
1.2
2.1
1.7
2.1
2.5
1.3
Gross national product (GNP) ....................................
3.0
2.8
2.4
3.6
2.6
3.9
1.5
3.6
2.7
5.1
0
5.2
2.4
.5
2.6
.7
4.0
5.8
1.9
Disposable personal income .......................................
1.7
3.1
3.1
3.7
2.4
2.9
7.5 –3.3
2.5 –1.2
6.6
4.9
.2
1.7
6.2
5.4
–.8
4.0
.1
Current-dollar measures:
GDP .........................................................................
6.4
6.1
4.9
6.8
7.4
6.0
5.9
7.1
5.5
8.1
4.8
8.4
6.0
3.4
3.8
4.9
6.6
6.0
3.0
Final sales of domestic product .............................
6.6
6.1
5.3
6.4
6.2
6.1
6.0
6.9
7.5
8.3
3.0
9.0
5.5
3.4
5.2
5.5
6.3
5.1
4.9
Gross domestic purchases .....................................
6.9
6.1
4.2
8.0
9.2
6.7
7.2
6.3
5.5
9.1
6.3
7.3
6.2
3.8
.9
4.9
6.2
5.1
3.3
Final sales to domestic purchasers .......................
7.1
6.1
4.6
7.6
8.0
6.8
7.3
6.1
7.4
9.3
4.6
7.9
5.7
3.7
2.1
5.5
6.0
4.3
5.0
GNP .........................................................................
6.3
6.0
5.2
7.4
6.5
6.3
4.8
7.6
5.4
8.7
3.5
8.8
6.0
2.8
4.3
4.9
6.8
6.9
4.3
Disposable personal income ..................................
4.7
5.9
5.7
7.3
6.3
4.9 10.8 –1.2
6.0
3.0
9.6
6.7
4.5
4.4
5.2
9.1
3.4
5.9
4.1
r Revised
See ‘‘Explanatory Note’’ at the end of the tables.

Table 2.—Contributions to Percent Change in Real Gross Domestic Product
Seasonally adjusted at annual rates
2005

Percent change at annual rate:
Gross domestic product ......................................
Percentage points at annual rates:
Personal consumption expenditures ......................
Durable goods .......................................................
Motor vehicles and parts ...................................
Furniture and household equipment ..................
Other ...................................................................
Nondurable goods ................................................
Food ....................................................................
Clothing and shoes ............................................
Gasoline, fuel oil, and other energy goods .......
Other ...................................................................
Services ..................................................................
Housing ...............................................................
Household operation ..........................................
Electricity and gas .........................................
Other household operation ............................
Transportation .....................................................
Medical care .......................................................
Recreation ...........................................................
Other ...................................................................
Gross private domestic investment .......................
Fixed investment ...................................................
Nonresidential .....................................................
Structures .......................................................
Equipment and software ................................
Information processing equipment and
software .................................................
Computers and peripheral equipment
Software .................................................
Other ......................................................
Industrial equipment ..................................
Transportation equipment ..........................
Other equipment ........................................
Residential ..........................................................
Change in private inventories .............................
Farm ....................................................................
Nonfarm ..............................................................
Net exports of goods and services ........................
Exports ...................................................................
Goods .................................................................
Services ..............................................................
Imports ...................................................................
Goods .................................................................
Services ..............................................................
Government consumption expenditures and
gross investment ..................................................
Federal ....................................................................
National defense .................................................
Consumption expenditures ............................
Gross investment ...........................................
Nondefense .........................................................
Consumption expenditures ............................
Gross investment ...........................................
State and local ......................................................
Consumption expenditures ............................
Gross investment ...........................................
Addenda:
Goods ......................................................................
Services ...................................................................
Structures ................................................................
Motor vehicle output ...............................................
Final sales of computers ........................................
r Revised
See ‘‘Explanatory Note’’ at the end of the tables.

2006

2007 r

2004
I

II

2005
III

IV

I

II

2006
III

I

II

1.2

4.8

2.4

2.82
.84
.51 –1.13
.20 –1.57
.39
.35
–.08
.09
.50
.93
.49
.40
0
.29
–.11
.06
.13
.18
1.81 1.05
.36
.30
.33 –.22
.29 –.21
.04 –.01
.01
.03
.53
.53
.06
.08
.53
.32
1.15 2.13
1.28
.38
.87
.35
–.17
.12
1.04
.23

3.00
1.23
.48
.54
.22
.91
.47
.11
.02
.31
.86
.30
–.40
–.42
.02
.06
.49
.07
.34
.78
1.27
1.31
.39
.92

1.63
.07
–.04
.17
–.06
.47
.13
.05
.02
.27
1.10
.23
.17
.14
.03
–.03
.26
.02
.45
.13
–.32
.44
.45
–.01

4.5

IV

2007
III

I

II

0.6

3.8

1.88 2.68 2.56
.43
.30
.67
.16 0
.35
.24
.25
.28
.04
.05
.04
.64
.86
.61
.24
.68
.16
.14
.10
.22
.05 –.15
.06
.20
.23
.17
.81 1.52 1.28
.18
.20
.26
.16
.13
.04
.17
.07
.03
–.01
.07
.01
.06
.11
.07
.12
.34
.47
.19
.30
.06
.11
.44
.39
–.70 –2.50 –1.36
–.80 –1.19 –.70
.53 –.15
.22
.31
.23
.20
.21 –.38
.02

1.00
.14
–.10
.13
.11
–.10
–.14
.06
–.12
.10
.96
.29
.05
.02
.03
.11
.28
.03
.19
.71
.49
1.12
.78
.34

1.1

IV

2.1

III

4.9

IV r

3.1

2.9

2.2

3.0

3.5

3.6

2.5

3.1

2.8

0.6

2.24
.40
0
.31
.09
.72
.38
.17
–.02
.19
1.12
.33
.08
.04
.03
.03
.41
.06
.21
.91
1.09
.70
.01
.69

2.15
.31
–.11
.35
.07
.74
.38
.13
–.01
.23
1.11
.28
–.03
–.05
.02
.03
.40
.09
.34
.45
.39
.68
.24
.44

2.02
.36
.07
.23
.06
.48
.22
.12
–.03
.17
1.18
.25
.12
.09
.03
.08
.33
.11
.29
–.82
–.48
.49
.40
.10

3.12
.49
.09
.29
.11
.92
.59
.31
0
.03
1.71
.35
.13
.04
.08
.04
.33
.21
.66
.30
–.07
–.28
–.01
–.27

1.73
.16
–.11
.27
0
.31
.10
–.13
.04
.29
1.25
.25
.06
–.05
.11
.08
.45
.12
.29
3.00
1.88
1.00
.15
.85

2.46
.64
.17
.36
.10
.62
.21
.15
–.03
.29
1.21
.29
.06
–.05
.12
.02
.52
.09
.22
1.26
1.41
1.16
.09
1.07

2.93
.57
.23
.25
.09
.97
.60
.23
0
.14
1.39
.31
.15
.15
.01
.06
.40
.03
.44
1.04
1.14
1.00
0
1.01

1.68
.18
–.27
.31
.13
.71
.31
.18
.05
.17
.79
.36
.04
.03
.01
.02
.27
.09
0
.89
.68
.36
.06
.30

2.40
.90
.48
.28
.14
.74
.38
.27
–.11
.20
.76
.36
–.02
–.04
.02
.01
.38
.03
0
–.64
1.26
.51
–.04
.55

.34
.17
.10
.08
.09
.13
.12
.39
–.18
–.07
–.11
–.23
.70
.53
.17
–.92
–.86
–.06

.27
.12
.06
.10
.05
.09
.04
–.29
.06
0
.06
–.08
.88
.73
.16
–.96
–.83
–.13

.29
.04
.15
.12 –.16
.04
.10
.14 0
.07
.05
.12
.02 –.14
.09
–.15 –.07
.52
–.06 –.10
.09
–.98
.21
.89
–.33
.37 1.12
.04
.28
.37
–.37
.08
.75
.59 –.75 –1.50
.91
.95
.64
.62
.49
.48
.28
.46
.16
–.32 –1.70 –2.14
–.22 –1.32 –1.92
–.09 –.37 –.21

.24
.41
.19
.24
.11
.17
–.06 0
.19
.06
.43
.40
.20
.13
.24
.14
–.14 –.11
–.32 –.14
.18
.03
–.42 –1.07
.31
.97
.42
.49
–.11
.49
–.73 –2.04
–.69 –1.78
–.05 –.26

.46
.32
.13
.19
.07
.14
.26 –.01
.15 –.12
–.34
.14
.04
.21
.32
.75
.21 –1.90
–.25
.13
.46 –2.04
.26
.83
.60
.95
.40
.92
.20
.03
–.34 –.12
–.43 –.13
.09
.01

.32
.26
.48
.11
.23
.06
.02
.05
.08
.19 –.01
.34
.23
.11 –.08
.40 –.21
.46
.09
.07
.06
.42
.03 –.05
–.14 1.74 –.49
.12
.01 –.04
–.26 1.73 –.45
–.10 –1.41
.13
.22 1.07 1.19
.14
.87 1.10
.08
.20
.10
–.32 –2.47 –1.07
–.32 –2.22 –.83
0
–.26 –.24

.05
.24 –.06
.11
.09
.03
.03
.05
.04
–.09
.10 –.12
.17 –.04 –.08
–.24
.10 –.18
0
–.09 –.05
–.76 –1.33 –1.04
.46
.10 –1.31
–.23
.10
.25
.69
.01 –1.56
.49 –.25 1.25
.61
.62 1.51
.49
.56
.73
.13
.07
.78
–.12 –.88 –.26
–.12 –.84
.09
0
–.03 –.35

.56
.25
.14
.18
–.04
–.20
–.30
–.93
–.65
.04
–.69
–.51
.13
.07
.05
–.63
–.57
–.06

.36
.24
.51
.08
.08
.20
.16
.07
.18
.11
.09
.13
.19
.10 –.18
–.32
.03 –.19
.11
.07
.08
–.62 –1.08 –1.25
.22
.89 –1.79
–.05
.01 –.09
.27
.87 –1.69
1.32 1.38 1.02
.85 2.10
.77
.53 1.96
.33
.33
.14
.45
.47 –.72
.24
.42 –.67
.39
.05 –.05 –.15

.14
.11
.07
.04
.03
.03
.01
.02
.04
.07
–.03

.35
.15
.09
.05
.04
.06
.05
.02
.19
.13
.06

.39
.12
.13
.13
.01
–.01
0
–.01
.27
.18
.09

.29
.41
.36
.35
.01
.06
.07
–.02
–.12
–.04
–.08

.25
.17
.09
.03
.06
.08
.03
.05
.09
.02
.07

.30
.43
.49
.34
.15
–.06
–.04
–.03
–.13
.04
–.17

–.35
–.33
–.48
–.45
–.04
.15
.12
.03
–.01
.11
–.12

.25
.19
.22
.26
–.05
–.02
–.02
0
.05
.02
.03

.22
.05
.12
.01
.11
–.07
–.08
.01
.17
.09
.08

.60
.59
.46
.41
.05
.13
.07
.06
.01
.12
–.11

–.37
–.46
–.59
–.57
–.02
.13
.06
.07
.09
.09
0

.92
.57
.31
.30
.01
.27
.23
.04
.35
.15
.20

.18
–.11
.11
–.05
.15
–.22
–.15
–.07
.29
.11
.18

1.36
1.36
.35
.14
.22

1.53
1.36
–.01
–.04
.13

1.02
1.68
–.51
–.07
.13

.68
2.17
.10
.29
–.28

1.10
1.27
1.11
–.21
–.04

2.06
1.40
.14
.87
.13

1.18
1.41
–.03
–.34
.29

1.32
1.34
.42
.18
.24

1.23
.82
.76
.16
.31

1.83
.49
2.50
.56
.14
.14
.92 –1.21
.15
.22

2.95
1.39
.48
.51
.05

2.01 1.58
.35
.15
–.17
.09
.31
.13
.20 –.06
.46
.25
.13
.39
.17 –.10
–.02 –.04
.18 –.01
1.20 1.18
.27
.34
.23
.22
.21
.19
.02
.03
.09
.07
.27
.51
.10 0
.24
.03
.77 –2.40
–.11 –.62
.96
.63
.52
.41
.44
.22

.14
.06
–.07
0
–.07
.14
.13
.01
.08
.18
–.10

.66
.50
.74
.60
.15
–.24
–.23
–.02
.16
.19
–.03

–.09
–.46
–.54
–.40
–.14
.08
.14
–.06
.36
.20
.17

.79
.41
.39
.35
.04
.02
–.02
.04
.37
.19
.18

.74
.50
.47
.39
.08
.03
.04
–.01
.24
.13
.11

.38
.04
–.03
.05
–.08
.06
.04
.02
.34
.22
.12

1.45 1.06
1.15 1.15
–.16 –1.14
–.37
.44
.13
.03

.36
2.50
–.77
–.74
.16

.06
1.21
–.68
.18
–.01

1.65
1.85
.32
.03
.21

3.48
1.86
–.43
.36
.28

–.49
1.80
–.73
–.86
.16

Table 3.—Gross Domestic Product and Related Measures: Level and Change From Preceding Period
Billions of current dollars

Billions of chained (2000) dollars
Seasonally adjusted
at annual rates

Seasonally adjusted
at annual rates
2007 r

2006

2007 r

2007

2006

Change from preceding
period
2007

2007
2007 r

IV

I

II

III

IV r

IV

I

II

III

IV r

Gross domestic product .......................... 13,841.3 13,392.3 13,551.9 13,768.8 13,970.5 14,074.2 11,566.8 11,395.5 11,412.6 11,520.1 11,658.9 11,675.7

III

IV r

247.4

138.8

16.8

Personal consumption expenditures ...................

9,734.2

9,373.7

9,540.5

9,674.0

9,785.7

9,936.6

8,277.8

8,141.2

8,215.7

8,244.3

8,302.2

8,349.1

233.7

57.9

46.9

Durable goods ....................................................
Motor vehicles and parts .................................
Furniture and household equipment ...............
Other ................................................................

1,078.2
441.2
416.1
221.0

1,056.5
434.8
409.0
212.8

1,074.0
444.5
414.2
215.3

1,074.7
441.5
414.5
218.8

1,081.6
437.5
418.6
225.6

1,082.5
441.3
417.1
224.1

1,235.4
446.9
593.6
222.2

1,197.6
439.6
566.9
215.2

1,223.2
451.5
579.9
216.6

1,228.4
448.2
585.9
220.2

1,241.9
442.3
601.0
227.2

1,248.1
445.4
607.7
224.9

54.9
9.6
42.7
8.3

13.5
–5.9
15.1
7.0

6.2
3.1
6.7
–2.3

Nondurable goods .............................................
Food .................................................................
Clothing and shoes .........................................
Gasoline, fuel oil, and other energy goods ....
Other ................................................................

2,833.2
1,336.4
370.5
364.2
762.2

2,705.4
1,291.7
363.2
306.3
744.3

2,759.4
1,312.2
371.1
320.9
755.1

2,822.7
1,322.7
368.4
373.6
758.1

2,846.3
1,342.4
372.4
365.9
765.6

2,904.5
1,368.2
370.0
396.4
769.9

2,392.8
1,117.0
409.1
196.2
686.6

2,368.8
1,110.7
397.0
197.0
676.5

2,386.6
1,115.3
405.1
198.2
681.7

2,383.8
1,111.4
407.5
195.9
684.7

2,396.8
1,115.0
413.7
195.6
690.2

2,404.2
1,126.4
409.9
194.9
689.9

55.1
25.2
18.0
–2.4
20.4

13.0
3.6
6.2
–.3
5.5

7.4
11.4
–3.8
–.7
–.3

Services ...............................................................
Housing ............................................................
Household operation ........................................
Electricity and gas .......................................
Other household operation .........................
Transportation ..................................................
Medical care ....................................................
Recreation ........................................................
Other ................................................................

5,822.8
1,465.9
531.1
226.9
304.2
358.4
1,689.3
402.2
1,375.8

5,611.8
1,413.9
509.7
212.7
297.0
346.8
1,617.9
392.8
1,330.7

5,707.1
1,435.1
520.0
220.6
299.4
349.6
1,656.9
395.3
1,350.1

5,776.5
1,455.4
526.2
223.5
302.7
355.1
1,674.6
400.2
1,365.0

5,857.8
1,474.9
533.3
227.3
305.9
362.5
1,695.0
404.6
1,387.5

5,949.7
1,498.3
544.8
236.1
308.7
366.6
1,730.7
408.6
1,400.6

4,674.8
1,175.6
426.0
157.1
268.5
300.2
1,336.0
334.0
1,101.5

4,595.5
1,156.6
419.1
152.5
266.8
294.1
1,310.5
330.3
1,083.5

4,630.7
1,163.7
420.1
153.1
267.1
296.0
1,323.2
332.0
1,094.1

4,656.7
1,171.6
421.6
153.6
268.1
299.2
1,330.8
332.7
1,099.3

4,689.5
1,178.9
427.9
158.5
268.8
301.7
1,338.0
335.6
1,105.8

4,722.4
1,188.3
434.2
163.1
269.9
303.8
1,352.1
335.5
1,106.8

129.3
27.3
13.1
8.6
3.4
9.0
35.7
12.7
31.6

32.8
7.3
6.3
4.9
.7
2.5
7.2
2.9
6.5

32.9
9.4
6.3
4.6
1.1
2.1
14.1
–.1
1.0

Gross private domestic investment .....................

2,125.4

2,152.4

2,117.3

2,139.1

2,162.9

2,082.1

1,825.5

1,856.2

1,816.9

1,837.4

1,859.9

1,787.7

–94.0

22.5

–72.2

Fixed investment ................................................
Nonresidential ..................................................
Structures ....................................................
Equipment and software .............................
Information processing equipment and
software ..............................................
Computers and peripheral equipment
Software ..............................................
Other ...................................................
Industrial equipment ................................
Transportation equipment .......................
Other equipment .....................................
Residential .......................................................

2,122.4
1,481.8
472.1
1,009.7

2,132.4
1,417.1
428.4
988.7

2,118.9
1,431.4
439.6
991.8

2,133.9
1,469.1
464.5
1,004.5

2,127.5
1,500.1
483.1
1,017.1

2,109.5
1,526.5
501.3
1,025.3

1,819.5
1,368.4
303.4
1,064.5

1,835.5
1,314.8
278.3
1,044.4

1,815.2
1,321.7
282.6
1,045.3

1,829.3
1,356.6
299.5
1,057.4

1,826.0
1,387.3
311.1
1,073.5

1,807.5
1,407.8
320.3
1,081.7

–55.2
61.6
34.8
13.9

–3.3
30.7
11.6
16.1

–18.5
20.5
9.2
8.2

511.7
97.3
217.7
196.8
175.1
154.0
168.8
640.7

480.5
90.4
205.9
184.3
167.5
168.0
172.7
715.3

497.6
96.6
210.5
190.5
168.1
162.9
163.2
687.5

507.7
96.6
216.1
195.0
176.0
153.3
167.5
664.8

512.6
95.7
218.5
198.4
180.6
153.3
170.5
627.3

Change in private inventories ..........................
Farm .................................................................
Nonfarm ...........................................................

2.9
3.4
–.5

20.0
4.7
15.3

–1.6
5.5
–7.0

5.1
4.0
1.1

35.4
3.8
31.6

529.0
645.5
599.6
623.3
638.5
648.7
671.3
49.6
10.2
22.6
100.2 .............. .............. .............. .............. .............. .............. .............. .............. ..............
225.5
227.0
215.1
219.9
225.6
228.0
234.5
14.0
2.4
6.5
203.4
215.3
202.6
209.2
213.4
216.8
221.9
10.5
3.4
5.1
175.7
151.7
148.4
147.3
152.9
156.0
150.6
2.1
3.1
–5.4
146.6
136.7
150.9
144.8
135.3
136.3
130.3
–18.5
1.0
–6.0
173.9
148.9
153.7
144.8
148.0
150.2
152.7
–7.3
2.2
2.5
582.9
472.8
529.4
506.3
490.7
463.3
430.9
–96.7
–27.4
–32.4
–27.4
.3
–27.7

4.5
3.7
0

17.4
3.8
13.6

.1
5.0
–5.8

5.8
3.6
1.3

30.6
4.1
26.0

–18.3
2.2
–21.7

–35.8
4.6
–41.7

24.8
.5
24.7

–48.9
–1.9
–47.7

Net exports of goods and services .....................

–708.0

–705.3

–714.2

–714.2

–694.7

–708.9

–555.6

–597.3

–612.1

–573.9

–533.1

–503.2

68.9

40.8

29.9

Exports ................................................................
Goods ...............................................................
Services ...........................................................

1,643.0
1,152.9
490.1

1,531.9
1,072.3
459.6

1,549.9
1,084.0
465.9

1,598.7
1,115.2
483.5

1,685.7
1,191.3
494.4

1,737.7
1,221.1
516.5

1,409.9
1,000.8
409.4

1,350.9
955.4
395.6

1,354.7
957.6
397.2

1,379.5
973.1
406.4

1,441.2
1,031.4
410.4

1,464.1
1,041.2
423.4

105.8
73.4
32.3

61.7
58.3
4.0

22.9
9.8
13.0

Imports ................................................................
Goods ...............................................................
Services ...........................................................

2,351.0
1,979.4
371.6

2,237.2
1,879.9
357.3

2,264.0
1,902.7
361.4

2,312.9
1,947.2
365.7

2,380.4
2,007.3
373.2

2,446.6
2,060.5
386.0

1,965.4
1,673.5
293.8

1,948.2
1,658.7
291.4

1,966.8
1,675.6
293.1

1,953.4
1,663.4
291.9

1,974.3
1,683.2
293.1

1,967.3
1,671.9
297.1

36.8
26.6
10.0

20.9
19.8
1.2

–7.0
–11.3
4.0

Government consumption expenditures and
gross investment ...............................................

2,689.8

2,571.4

2,608.3

2,670.0

2,716.5

2,764.4

2,021.6

1,997.2

1,994.7

2,014.8

2,033.6

2,043.4

40.2

18.8

9.8

Federal .................................................................
National defense ..............................................
Consumption expenditures ..........................
Gross investment ........................................
Nondefense ......................................................
Consumption expenditures ..........................
Gross investment ........................................

976.0
660.1
578.9
81.2
315.9
277.2
38.7

949.7
645.2
561.5
83.7
304.5
264.9
39.6

946.6
634.8
555.7
79.1
311.7
274.0
37.7

969.5
654.5
573.8
80.7
315.0
276.0
39.1

990.3
673.5
589.6
83.9
316.8
278.1
38.6

997.7
677.7
596.4
81.3
320.0
280.5
39.5

755.0
505.1
429.3
77.3
249.6
213.0
36.8

752.3
505.8
427.7
80.1
246.1
208.8
37.8

740.2
491.6
417.4
75.6
248.4
212.5
35.9

751.0
501.7
426.2
77.0
248.9
212.0
37.2

764.0
513.9
436.0
79.6
249.6
213.1
36.8

765.0
513.2
437.4
76.9
251.4
214.2
37.4

12.7
13.6
12.7
.7
–1.1
.4
–1.7

13.0
12.2
9.8
2.6
.7
1.1
–.4

1.0
–.7
1.4
–2.7
1.8
1.1
.6

State and local ...................................................
Consumption expenditures ..........................
Gross investment ........................................

1,713.8
1,365.9
347.9

1,621.7
1,300.8
320.9

1,661.7
1,326.7
335.0

1,700.5
1,355.9
344.5

1,726.2
1,374.3
351.9

1,766.7
1,406.4
360.3

1,266.4
1,009.2
257.0

1,244.9
997.5
247.3

1,254.2
1,002.5
251.5

1,263.5
1,007.4
256.0

1,269.6
1,010.7
258.8

1,278.3
1,016.3
261.9

27.4
18.3
9.0

6.1
3.3
2.8

8.7
5.6
3.1

Residual .................................................................... .............. .............. .............. .............. .............. ..............

–145.8

–108.2

–130.7

–136.3

–149.4

–165.9 .............. .............. ..............

Addenda:
Final sales of domestic product .......................... 13,838.4 13,372.3 13,553.5 13,763.6 13,935.0 14,101.6 11,561.5 11,375.8 11,411.6 11,512.8 11,626.4 11,695.2
Gross domestic purchases .................................. 14,549.3 14,097.6 14,266.1 14,483.0 14,665.1 14,783.1 12,117.8 11,987.1 12,018.7 12,088.9 12,188.3 12,175.5
Final sales to domestic purchasers .................... 14,546.4 14,077.6 14,267.7 14,477.9 14,629.7 14,810.5 12,112.2 11,967.3 12,017.4 12,081.4 12,155.6 12,194.6

285.6
180.7
218.8

113.6
99.4
74.2

68.8
–12.8
39.0

Gross domestic product ................................... 13,841.3 13,392.3 13,551.9 13,768.8 13,970.5 14,074.2 11,566.8 11,395.5 11,412.6 11,520.1 11,658.9 11,675.7
Plus: Income receipts from the rest of the world
817.5
733.8
752.2
814.2
855.6
848.1
685.6
628.3
638.2
684.3
716.3
703.4
Less: Income payments to the rest of the world
721.8
673.7
689.0
743.5
754.4
700.2
603.8
575.1
583.2
623.5
629.6
579.1
Equals: Gross national product ....................... 13,937.1 13,452.4 13,615.1 13,839.4 14,071.6 14,222.1 11,647.6 11,447.8 11,466.7 11,580.0 11,744.6 11,799.1

247.4
90.6
60.2
277.5

138.8
32.0
6.1
164.6

16.8
–12.9
–50.5
54.5

Net domestic product ........................................... 12,154.8 11,737.9 11,881.0 12,085.4 12,279.6 12,373.0 10,080.0

207.2

130.6

9.6

r Revised
NOTE.—Users are cautioned that particularly for components that exhibit rapid change in prices relative to other
prices in the economy, the chained-dollar estimates should not be used to measure the component’s relative importance or its contribution to the growth rate of more aggregate series. For accurate estimates of the contributions
to percent changes in real gross domestic product, use table 2.
See ‘‘Explanatory Note’’ at the end of the tables.

9,928.3

9,937.7 10,037.2 10,167.8 10,177.4

Table 4.—Price Indexes for Gross Domestic Product and Related Measures: Percent Change From Preceding Period
Seasonally adjusted at annual rates
2005

2006

2007 r

2004
I

II

2005
III

IV

I

II

2006
III

IV

I

II

2007
III

IV

I

II

III

IV r

Gross domestic product (GDP) .................

3.2

3.2

2.7

3.7

3.8

2.3

3.2

3.9

2.6

3.5

3.5

3.4

3.5

2.4

1.7

4.2

2.6

1.0

2.4

Personal consumption expenditures ..........................
Durable goods .............................................................
Nondurable goods .......................................................
Services .......................................................................

2.9
–.7
3.7
3.4

2.8
–1.3
3.1
3.4

2.5
–1.8
3.0
3.2

3.5
–.5
5.3
3.5

3.8
.3
6.2
3.4

2.0
–2.5
1.4
3.1

3.0
.2
4.7
2.8

2.2
.1
.3
3.6

3.4
–.4
5.0
3.4

4.3
–2.8
9.5
3.3

2.8
–1.1
.8
4.6

1.7
–1.0
.3
3.0

4.3
–.7
8.6
3.2

2.6
–1.3
2.8
3.2

–.9
–2.7
–7.9
3.0

3.5
–1.9
5.0
3.8

4.3
–1.4
10.0
2.6

1.8
–1.8
1.1
2.8

3.9
–1.7
7.1
3.5

Gross private domestic investment ............................
4.2
3.5
1.2
4.1
4.7
3.9
3.9
5.2
2.8
4.0
5.8
4.0
2.5
1.6
2.2
2.0
–.4
–.3
.8
Fixed investment .........................................................
4.3
3.5
1.1
4.1
4.7
3.9
3.9
5.3
2.9
4.2
6.0
3.9
2.4
1.5
2.0
1.9
–.3
–.5
.7
Nonresidential .........................................................
2.9
3.1
1.2
1.1
2.4
1.3
2.5
4.5
2.4
1.6
4.6
3.9
2.8
1.9
2.0
1.9
0
–.6
1.1
Structures ............................................................
11.7 11.7
3.3
6.8
7.6 10.1 12.0 12.8
8.7 13.8 17.6 13.0 10.7
5.6
4.6
4.1 –1.1
.5
3.2
Equipment and software ....................................
–.1
0
.4
–.8
.7 –1.7
–.6
1.8
.3 –2.5
.2
.6
–.2
.4
.8
1.0
.5 –1.1
.1
Residential ...............................................................
6.7
4.4
.9
9.8
8.8
8.5
6.2
6.6
3.6
8.7
8.5
3.9
1.8
.8
2.1
2.0
–.8
–.3
–.4
Change in private inventories ..................................... .......... .......... ........... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Net exports of goods and services ............................ .......... .......... ........... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Exports .........................................................................
3.6
3.4
3.5
5.5
4.8
1.9
4.2
4.6
3.6
2.5
3.0
2.7
6.0
4.6
–.8
3.6
5.3
3.8
6.0
Goods ......................................................................
3.1
3.3
3.6
6.3
5.2
1.0
3.6
4.3
3.0
1.3
2.3
3.0
6.3
5.2
.1
3.5
5.1
3.2
6.3
Services ...................................................................
4.9
3.7
3.3
3.9
3.8
3.8
5.5
5.0
4.9
5.2
4.8
2.2
5.5
3.3 –2.7
3.9
5.8
5.1
5.3
Imports .........................................................................
6.3
4.0
3.5
9.2
7.3
5.3
6.9
2.2
9.7 10.3
4.3 –1.5 10.1
4.7 –9.4
1.0 11.9
7.5 13.2
Goods ......................................................................
6.5
4.2
3.6 10.0
7.9
5.0
7.0
2.0 10.1 10.9
4.9 –1.9 10.4
5.3 –10.1
.7 13.0
7.7 14.1
Services ...................................................................
5.6
3.1
2.8
4.9
4.7
6.7
6.0
3.5
7.7
7.5
1.3
.5
8.4
1.4 –5.3
2.3
6.7
6.5
8.6
Government consumption expenditures and gross
investment ..................................................................
Federal .........................................................................
National defense .....................................................
Nondefense .............................................................
State and local ............................................................

5.8
4.8
5.3
4.0
6.4

4.9
3.9
4.1
3.5
5.4

4.5
2.9
2.9
2.9
5.4

7.2
11.6
10.6
13.8
4.6

5.0
5.5
5.6
5.2
4.7

4.8
2.5
2.9
1.4
6.2

5.7
2.6
3.1
1.7
7.6

7.5
11.5
12.2
10.1
5.2

4.6
2.3
2.5
1.8
6.1

6.4
3.4
3.5
3.2
8.1

5.0
.8
1.3
–.2
7.6

5.1
9.1
9.3
8.9
2.7

5.7
4.0
4.2
3.5
6.7

3.0
1.3
1.6
.7
4.0

2.1
.5
–.1
1.7
3.1

6.4
5.3
5.0
5.9
7.0

5.5
3.8
4.1
3.3
6.5

3.2
1.6
1.9
1.1
4.2

5.2
2.5
3.0
1.3
6.8

Addenda:
Final sales of domestic product .................................
Gross domestic purchases .........................................
Final sales to domestic purchasers ............................
Gross national product (GNP) ....................................

3.2
3.7
3.7
3.2

3.2
3.3
3.3
3.1

2.6
2.7
2.7
2.7

3.7
4.3
4.3
3.7

3.8
4.2
4.2
3.8

2.3
2.8
2.7
2.3

3.2
3.6
3.6
3.2

3.9
3.6
3.6
3.9

2.6
3.5
3.5
2.6

3.5
4.6
4.6
3.5

3.5
3.7
3.7
3.5

3.4
2.7
2.7
3.4

3.5
4.2
4.2
3.5

2.3
2.5
2.5
2.4

1.7
.1
.1
1.7

4.2
3.8
3.8
4.2

2.7
3.8
3.8
2.6

1.0
1.8
1.7
1.0

2.4
3.7
3.7
2.5

Implicit price deflators:
GDP .........................................................................
Gross domestic purchases .....................................
GNP .........................................................................

3.2
3.6
3.2

3.2
3.3
3.2

2.7
2.7
2.7

3.7
4.3
3.7

3.8
4.2
3.8

2.3
2.7
2.3

3.2
3.7
3.2

3.9
3.6
3.9

2.6
3.6
2.6

3.5
4.6
3.5

3.5
3.7
3.5

3.4
2.7
3.4

3.5
4.2
3.5

2.4
2.5
2.4

1.7
.1
1.7

4.2
3.8
4.2

2.6
3.8
2.6

1.0
1.7
1.0

2.4
3.7
2.4

r Revised
See ‘‘Explanatory Note’’ at the end of the tables.

Table 5.—Real Gross Domestic Product, Quantity Indexes
[Index numbers, 2000=100]
Seasonally adjusted
2005

2006

2007 r

2006
IV

2007
I

II

III

IV r

Gross domestic product ............................................................................................

112.086

115.304

117.825

116.080

116.254

117.349

118.763

118.934

Personal consumption expenditures .........................................................................................
Durable goods ............................................................................................................................
Nondurable goods ......................................................................................................................
Services ......................................................................................................................................

115.791
131.748
115.828
112.687

119.359
136.735
120.051
115.696

122.828
143.096
122.884
118.987

120.801
138.720
121.650
116.969

121.906
141.680
122.563
117.865

122.331
142.283
122.419
118.527

123.190
143.852
123.090
119.360

123.885
144.572
123.466
120.198

Gross private domestic investment ...........................................................................................
107.709
110.607
105.187
106.955
104.690
105.875
107.172
103.011
Fixed investment ........................................................................................................................
109.080
111.657
108.369
109.325
108.113
108.956
108.756
107.652
Nonresidential ........................................................................................................................
99.490
106.062
111.061
106.711
107.277
110.109
112.597
114.261
Structures ...........................................................................................................................
79.127
85.770
96.871
88.849
90.241
95.639
99.330
102.274
Equipment and software ...................................................................................................
107.935
114.332
115.842
113.662
113.753
115.075
116.821
117.720
Residential ..............................................................................................................................
133.608
127.433
105.795
118.462
113.301
109.791
103.665
96.422
Change in private inventories .................................................................................................... .................... .................... .................... .................... .................... .................... .................... ....................
Exports of goods and services ..................................................................................................

109.775

118.957

128.603

123.222

123.568

125.833

131.458

133.555

Imports of goods and services ..................................................................................................

123.425

130.683

133.181

132.014

133.272

132.363

133.780

133.309

Government consumption expenditures and gross investment ...........................................
Federal .......................................................................................................................................
State and local ...........................................................................................................................

113.050
125.524
106.721

115.092
128.255
108.418

117.427
130.454
110.816

116.007
129.977
108.935

115.865
127.886
109.748

117.028
129.756
110.564

118.121
132.000
111.096

118.693
132.175
111.857

Addenda:
Final sales of domestic product ................................................................................................
Gross domestic purchases ........................................................................................................
Final sales to domestic purchasers ..........................................................................................
Gross national product ...............................................................................................................

112.360
113.894
114.166
112.265

115.526
117.071
117.292
115.363

118.452
118.844
119.450
118.179

116.550
117.562
118.021
116.152

116.916
117.871
118.515
116.344

117.953
118.560
119.146
117.493

119.117
119.535
119.878
119.163

119.822
119.409
120.263
119.716

r Revised
See ‘‘Explanatory Note’’ at the end of the tables.

Table 6.—Price Indexes for Gross Domestic Product
[Index numbers, 2000=100]
Seasonally adjusted
2005

2006

2007 r

2006
IV

2007
I

II

III

IV r

Gross domestic product ............................................................................................

113.005

116.568

119.668

117.527

118.750

119.527

119.837

120.560

Personal consumption expenditures (PCE) ..............................................................................
Durable goods ............................................................................................................................
Nondurable goods ......................................................................................................................
Services ......................................................................................................................................

111.588
90.018
111.561
116.726

114.675
88.857
114.989
120.725

117.591
87.276
118.398
124.556

115.143
88.213
114.210
122.122

116.129
87.799
115.620
123.252

117.345
87.488
118.413
124.055

117.873
87.091
118.751
124.921

119.019
86.726
120.810
125.996

Gross private domestic investment ...........................................................................................
111.155
115.090
116.458
115.958
116.532
116.426
116.325
116.549
Fixed investment ........................................................................................................................
111.404
115.352
116.637
116.162
116.718
116.636
116.498
116.696
Nonresidential ........................................................................................................................
103.778
106.961
108.293
107.789
108.301
108.293
108.140
108.440
Structures ...........................................................................................................................
135.013
150.806
155.709
154.071
155.637
155.199
155.392
156.609
Equipment and software ...................................................................................................
94.527
94.485
94.857
94.667
94.892
95.002
94.751
94.783
Residential ..............................................................................................................................
128.653
134.288
135.450
135.076
135.736
135.459
135.367
135.238
Change in private inventories .................................................................................................... .................... .................... .................... .................... .................... .................... .................... ....................
Exports of goods and services ..................................................................................................

108.803

112.537

116.510

113.424

114.433

115.912

116.992

118.704

Imports of goods and services ..................................................................................................

111.117

115.610

119.613

114.834

115.114

118.408

120.572

124.360

Government consumption expenditures and gross investment ...........................................
Federal .......................................................................................................................................
State and local ...........................................................................................................................

121.435
120.914
121.758

127.334
125.622
128.370

133.042
129.256
135.316

128.757
126.244
130.272

130.765
127.886
132.499

132.527
129.098
134.586

133.588
129.622
135.969

135.286
130.416
138.209

Addenda:
PCE excluding food and energy ...............................................................................................
Market-based PCE 1 ..................................................................................................................
Market-based PCE excluding food and energy 1 .....................................................................

109.670
110.307
107.667

112.130
113.168
109.717

114.483
115.945
111.783

113.052
113.456
110.507

113.730
114.472
111.161

114.116
115.784
111.498

114.682
116.186
111.917

115.403
117.339
112.557

Final sales of domestic product ................................................................................................
Gross domestic purchases ........................................................................................................
Final sales to domestic purchasers ..........................................................................................
Gross national product ...............................................................................................................

113.040
113.225
113.261
112.999

116.603
116.920
116.956
116.558

119.692
120.068
120.093
119.659

117.553
117.609
117.636
117.515

118.773
118.702
118.727
118.740

119.555
119.809
119.838
119.518

119.860
120.330
120.355
119.824

120.579
121.432
121.452
120.552

Implicit price deflators:
Gross domestic product ........................................................................................................
Final sales of domestic product ............................................................................................
Gross domestic purchases ....................................................................................................
Final sales to domestic purchasers ......................................................................................
Gross national product ..........................................................................................................

113.000
113.040
113.221
113.261
112.994

116.567
116.603
116.919
116.956
116.558

119.664
119.694
120.065
120.097
119.656

117.522
117.550
117.606
117.634
117.511

118.745
118.770
118.700
118.725
118.736

119.519
119.551
119.804
119.837
119.512

119.826
119.857
120.321
120.354
119.814

120.542
120.576
121.417
121.451
120.535

r Revised
1. This index is a supplemental measure that is based on household expenditures for which there are observable
price measures. It excludes most implicit prices (for example, the services furnished without payment by financial
intermediaries) and the expenses of nonprofit institutions. Percentage changes for these series are included in the
addenda to table 8 and in appendix table A.
See ‘‘Explanatory Note’’ at the end of the tables.

Table 7.—Real Gross Domestic Product: Percent Change From Preceding Year
1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007 r

Gross domestic product (GDP) ........................................................
3.3
2.7
4.0
2.5
3.7
4.5
4.2
4.5
3.7
0.8
1.6
2.5
3.6
3.1
2.9
2.2
Personal consumption expenditures .................................................................
3.3
3.3
3.7
2.7
3.4
3.8
5.0
5.1
4.7
2.5
2.7
2.8
3.6
3.2
3.1
2.9
Durable goods ....................................................................................................
5.9
7.8
8.4
4.4
7.8
8.6 11.3 11.7
7.3
4.3
7.1
5.8
6.3
4.9
3.8
4.7
Nondurable goods ..............................................................................................
2.0
2.7
3.5
2.2
2.6
2.7
4.0
4.6
3.8
2.0
2.5
3.2
3.5
3.6
3.6
2.4
Services ..............................................................................................................
3.5
2.8
2.9
2.6
2.9
3.3
4.2
4.0
4.5
2.4
1.9
1.9
3.2
2.7
2.7
2.8
Gross private domestic investment ..................................................................
8.1
8.9 13.6
3.1
8.9 12.4
9.8
7.8
5.7 –7.9 –2.6
3.6
9.7
5.6
2.7
–4.9
Fixed investment ................................................................................................
5.9
8.6
9.3
6.5
9.0
9.2 10.2
8.3
6.5 –3.0 –5.2
3.4
7.3
6.9
2.4
–2.9
Nonresidential ................................................................................................
3.2
8.7
9.2 10.5
9.3 12.1 11.1
9.2
8.7 –4.2 –9.2
1.0
5.8
7.1
6.6
4.7
Structures ..................................................................................................
–6.0
–.7
1.8
6.4
5.6
7.3
5.1
–.4
6.8 –2.3 –17.1 –4.1
1.3
.5
8.4
12.9
Equipment and software ...........................................................................
7.3 12.5 11.9 12.0 10.6 13.8 13.3 12.7
9.4 –4.9 –6.2
2.8
7.4
9.6
5.9
1.3
Residential .....................................................................................................
13.8
8.2
9.6 –3.2
8.0
1.9
7.6
6.0
.8
.4
4.8
8.4 10.0
6.6 –4.6 –17.0
Change in private inventories ........................................................................... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ...........
Net exports of goods and services ................................................................... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ...........
Exports ...............................................................................................................
6.9
3.2
8.7 10.1
8.4 11.9
2.4
4.3
8.7 –5.4 –2.3
1.3
9.7
6.9
8.4
8.1
Goods ............................................................................................................
7.5
3.3
9.7 11.7
8.8 14.3
2.2
3.8 11.2 –6.1 –4.0
1.8
9.0
7.5
9.9
7.9
Services .........................................................................................................
5.5
3.2
6.3
6.3
7.2
5.9
2.9
5.6
2.9 –3.7
1.9
0
11.5
5.4
4.8
8.5
Imports ...............................................................................................................
7.0
8.8 11.9
8.0
8.7 13.6 11.6 11.5 13.1 –2.7
3.4
4.1 11.3
5.9
5.9
1.9
Goods ............................................................................................................
9.3 10.1 13.3
9.0
9.3 14.4 11.7 12.4 13.5 –3.2
3.7
4.9 11.3
6.6
6.0
1.6
Services .........................................................................................................
–2.6
2.9
5.7
3.3
5.5
9.4 11.4
6.9 11.1
–.3
2.1
0
11.5
2.3
5.2
3.5
Government consumption expenditures and gross investment ...................
.5
–.9
0
.5
1.0
1.9
1.9
3.9
2.1
3.4
4.4
2.5
1.4
.7
1.8
2.0
Federal ...............................................................................................................
–1.7 –4.2 –3.7 –2.7 –1.2 –1.0 –1.1
2.2
.9
3.9
7.0
6.8
4.2
1.5
2.2
1.7
National defense ............................................................................................
–5.0 –5.6 –4.9 –3.8 –1.4 –2.8 –2.1
1.9
–.5
3.9
7.4
8.7
5.8
1.5
1.9
2.8
Nondefense ....................................................................................................
6.9
–.7 –1.2
–.4
–.7
2.6
.7
2.8
3.5
3.9
6.3
3.4
1.1
1.3
2.8
–.4
State and local ...................................................................................................
2.2
1.4
2.6
2.6
2.3
3.6
3.6
4.7
2.7
3.2
3.1
.2
–.2
.3
1.6
2.2
Addenda:
Final sales of domestic product ........................................................................
3.0
2.6
3.4
3.0
3.7
4.0
4.2
4.5
3.8
1.6
1.2
2.5
3.3
3.3
2.8
2.5
Gross domestic purchases ................................................................................
3.3
3.2
4.4
2.4
3.8
4.8
5.3
5.3
4.4
.9
2.2
2.8
4.1
3.1
2.8
1.5
Final sales to domestic purchasers ..................................................................
3.1
3.2
3.8
2.8
3.8
4.3
5.3
5.4
4.5
1.8
1.8
2.8
3.8
3.3
2.7
1.8
Gross national product ......................................................................................
3.3
2.7
3.9
2.6
3.7
4.4
4.0
4.6
3.7
.8
1.5
2.7
3.8
3.0
2.8
2.4
Real disposable personal income .....................................................................
3.4
1.0
2.7
2.8
3.0
3.5
5.8
3.0
4.8
1.9
3.1
2.2
3.6
1.7
3.1
3.1
Price indexes:
Gross domestic purchases ...........................................................................
2.3
2.2
2.1
2.1
1.8
1.4
.6
1.6
2.5
2.0
1.6
2.3
3.1
3.7
3.3
2.7
Gross domestic purchases excluding food and energy ..............................
2.6
2.3
2.2
2.2
1.5
1.3
1.0
1.4
1.9
1.9
1.9
1.9
2.7
3.1
2.9
2.4
GDP ...............................................................................................................
2.3
2.3
2.1
2.0
1.9
1.7
1.1
1.4
2.2
2.4
1.7
2.1
2.9
3.2
3.2
2.7
GDP excluding food and energy ..................................................................
2.5
2.4
2.2
2.1
1.7
1.7
1.2
1.5
2.0
2.1
2.1
1.9
2.7
3.2
3.1
2.4
Personal consumption expenditures .............................................................
2.9
2.3
2.1
2.1
2.2
1.7
.9
1.7
2.5
2.1
1.4
2.0
2.6
2.9
2.8
2.5
r

Revised

Table 8.—Real Gross Domestic Product: Percent Change From Quarter One Year Ago
2004
I

II

2005
III

IV

I

II

2006
III

IV

I

II

2007
III

IV

I

II

III

IV r

Gross domestic product (GDP) .........................................................
4.1
4.1
3.2
3.1
3.2
3.0
3.2
2.9
3.3
3.2
2.4
2.6
1.5
1.9
2.8
2.5
Personal consumption expenditures (PCE) .......................................................
4.0
3.7
3.2
3.7
3.1
3.4
3.5
2.8
3.3
3.0
2.7
3.4
3.2
2.9
3.0
2.6
Durable goods .....................................................................................................
9.8
6.1
4.0
5.6
4.7
7.0
6.6
1.2
4.6
2.1
2.0
6.6
4.7
5.0
4.7
4.2
Nondurable goods ...............................................................................................
4.1
3.9
2.8
3.5
3.3
3.8
3.6
3.6
3.8
3.5
3.7
3.6
3.2
2.5
2.3
1.5
Services ...............................................................................................................
2.9
3.2
3.2
3.3
2.8
2.5
2.9
2.7
2.7
3.0
2.4
2.6
2.9
2.8
3.0
2.8
Gross private domestic investment ....................................................................
7.9 12.2
9.8
9.1
9.9
3.8
3.6
5.3
5.0
6.2
3.4 –3.6 –6.6 –5.7 –3.5 –3.7
Fixed investment .................................................................................................
7.3
7.8
6.8
7.2
8.3
7.1
6.8
5.5
6.5
4.0
.8 –1.6 –4.5 –3.3 –2.3 –1.5
Nonresidential .................................................................................................
4.9
4.9
5.6
7.5
9.1
7.7
6.8
5.1
7.5
7.3
6.4
5.2
2.5
4.1
5.1
7.1
Structures ...................................................................................................
2.0
0
1.1
2.3
2.9
1.0 –1.6
–.3
2.7
7.1 11.6 12.3 10.2 12.4 13.8 15.1
Equipment and software ............................................................................
6.0
6.7
7.3
9.4 11.4 10.1
9.9
7.1
9.4
7.4
4.6
2.5
–.5
.7
1.5
3.6
Residential ......................................................................................................
11.6 13.2
8.8
6.7
7.0
6.2
6.9
6.4
4.8 –1.5 –8.5 –12.8 –16.5 –16.5 –16.5 –18.6
Change in private inventories ............................................................................. .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Net exports of goods and services .................................................................... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Exports ................................................................................................................
9.8 12.0
9.9
7.4
6.4
7.1
6.9
7.0
8.4
7.4
8.4
9.3
6.6
7.1 10.3
8.4
Goods ..............................................................................................................
8.4 10.7 10.0
7.0
6.6
8.1
7.0
8.3 10.7
9.0 10.4
9.7
6.1
6.1 10.5
9.0
Services ..........................................................................................................
13.0 15.3
9.8
8.3
6.0
4.9
6.6
4.1
3.2
3.9
3.8
8.3
7.9
9.4
9.9
7.0
Imports .................................................................................................................
9.3 12.1 12.4 11.5
8.8
5.3
4.6
5.1
6.3
6.4
7.2
3.7
2.9
2.0
1.7
1.0
Goods ..............................................................................................................
9.3 11.3 12.6 11.9
9.8
5.9
5.2
5.8
6.6
6.7
7.6
3.2
2.7
1.7
1.3
.8
Services ..........................................................................................................
9.2 16.4 11.5
9.3
4.3
1.9
1.5
1.4
4.7
4.8
5.2
6.1
4.3
3.9
4.0
2.0
Government consumption expenditures and gross investment ....................
2.5
1.3
1.3
.7
.6
.6
.9
.9
1.8
1.8
1.2
2.5
1.2
1.9
2.7
2.3
Federal ................................................................................................................
7.1
3.0
4.4
2.4
1.6
1.2
1.8
1.3
2.7
2.1
.3
3.7
0
1.8
3.4
1.7
National defense .............................................................................................
10.8
3.1
7.2
2.5
1.7
1.8
1.6
1.1
1.6
1.5 –1.3
5.9
1.2
2.8
5.7
1.5
Nondefense .....................................................................................................
.3
2.8
–.9
2.3
1.5
–.1
2.1
1.9
5.0
3.4
3.4
–.7 –2.5
0
–1.2
2.1
State and local ....................................................................................................
–.1
.3
–.5
–.4
0
.2
.5
.7
1.3
1.5
1.7
1.8
1.9
2.0
2.3
2.7
Addenda:
Final sales of domestic product .........................................................................
4.0
3.5
2.7
2.8
2.9
3.5
3.7
2.9
3.5
2.8
1.9
3.0
1.9
2.3
3.1
2.8
Gross domestic purchases .................................................................................
4.3
4.5
3.8
3.9
3.7
2.9
3.1
2.8
3.3
3.3
2.5
2.1
1.2
1.4
1.9
1.6
Final sales to domestic purchasers ...................................................................
4.2
3.9
3.3
3.6
3.4
3.4
3.5
2.9
3.5
2.9
2.1
2.4
1.6
1.8
2.1
1.9
Gross national product ........................................................................................
4.6
4.2
3.4
2.9
2.9
2.9
3.2
2.8
3.2
3.2
2.0
2.7
1.5
1.9
3.2
3.1
Real disposable personal income ......................................................................
4.2
3.5
2.7
4.1
2.3
2.3
1.3
1.1
3.1
2.6
3.3
3.2
3.4
3.1
3.7
2.2
Price indexes:
Gross domestic purchases .............................................................................
2.2
3.1
3.3
3.7
3.5
3.4
3.8
3.8
3.6
3.8
3.3
2.4
2.6
2.5
2.3
3.3
Gross domestic purchases excluding food and energy ................................
2.1
2.7
2.9
3.1
3.2
3.0
3.0
3.1
2.9
3.1
3.0
2.8
2.8
2.3
2.2
2.2
GDP ................................................................................................................
2.3
2.9
3.0
3.2
3.3
3.0
3.3
3.4
3.2
3.5
3.2
2.7
2.9
2.7
2.4
2.6
GDP excluding food and energy ...................................................................
2.1
2.7
2.9
3.2
3.3
3.1
3.2
3.3
3.1
3.3
3.2
2.9
2.9
2.5
2.3
2.2
PCE .................................................................................................................
2.0
2.8
2.7
3.1
2.8
2.6
3.2
3.2
3.1
3.3
2.9
1.9
2.3
2.3
2.1
3.4
PCE excluding food and energy ....................................................................
1.8
2.1
2.1
2.2
2.3
2.1
2.1
2.2
2.0
2.2
2.4
2.3
2.4
2.0
1.9
2.1
Market-based PCE 1 .......................................................................................
1.6
2.4
2.3
2.8
2.4
2.4
3.1
3.0
2.9
3.2
2.7
1.6
2.2
2.2
2.0
3.4
Market-based PCE excluding food and energy 1 ..........................................
1.3
1.5
1.4
1.6
1.8
1.7
1.7
1.7
1.6
1.9
2.1
2.0
2.2
1.8
1.7
1.9
r Revised
1. This index is a supplemental measure that is based on household expenditures for which there are observable
price measures. It excludes most implicit prices (for example, the services furnished without payment by financial

intermediaries) and the expenses of nonprofit institutions.

Table 9.—Relation of Gross Domestic Product, Gross National Product, and National Income
[Billions of dollars]
Seasonally adjusted at annual rates
2005

2007 r

2006

2006

2007

IV

I

II

III

IV r

Gross domestic product ..............................................................................................................

12,433.9

13,194.7

13,841.3

13,392.3

13,551.9

13,768.8

13,970.5

14,074.2

Plus: Income receipts from the rest of the world .........................................................................
Less: Income payments to the rest of the world ..........................................................................

544.1
475.6

691.4
633.4

817.5
721.8

733.8
673.7

752.2
689.0

814.2
743.5

855.6
754.4

848.1
700.2

Equals: Gross national product .................................................................................................

12,502.4

13,252.7

13,937.1

13,452.4

13,615.1

13,839.4

14,071.6

14,222.1

Less: Consumption of fixed capital ...............................................................................................
Less: Statistical discrepancy ..........................................................................................................

1,609.5
5.4

1,615.2
–18.1

1,686.6
29.4

1,654.4
–46.6

1,670.9
–66.3

1,683.4
–40.8

1,690.9
84.8

1,701.1
139.9

Equals: National income .............................................................................................................
Compensation of employees .....................................................................................................
Wage and salary accruals .....................................................................................................
Supplements to wages and salaries .....................................................................................
Proprietors’ income with inventory valuation and capital consumption adjustments ..............
Rental income of persons with capital consumption adjustment .............................................
Corporate profits with inventory valuation and capital consumption adjustments ...................
Net interest and miscellaneous payments ................................................................................
Taxes on production and imports less subsidies .....................................................................
Business current transfer payments ..........................................................................................
Current surplus of government enterprises ..............................................................................

10,887.6
7,029.6
5,672.9
1,356.8
969.9
42.9
1,372.8
558.0
863.1
66.5
–15.1

11,655.6
7,448.3
6,025.7
1,422.6
1,006.7
54.5
1,553.7
598.5
917.6
90.2
–13.9

12,221.1
7,874.2
6,382.1
1,492.1
1,042.6
65.4
1,595.2
602.6
961.4
94.2
–14.5

11,844.6
7,649.9
6,203.0
1,446.9
1,009.8
50.9
1,531.2
596.0
931.1
91.8
–16.0

12,010.5
7,764.9
6,294.4
1,470.5
1,027.4
53.2
1,547.7
599.6
943.8
91.8
–17.8

12,196.8
7,826.9
6,343.9
1,483.0
1,038.4
62.1
1,642.4
592.4
956.8
92.8
–15.0

12,296.0
7,907.7
6,407.7
1,500.0
1,048.7
68.4
1,621.9
599.3
967.8
94.4
–12.2

12,381.0
7,997.2
6,482.4
1,514.8
1,055.9
77.8
1,569.0
619.0
977.3
97.9
–13.1

Addendum:
Gross domestic income .............................................................................................................

12,428.6

13,212.8

13,811.9

13,438.9

13,618.2

13,809.5

13,885.7

13,934.3

r

Revised

Table 10.—Personal Income and Its Disposition
[Billions of dollars]
Seasonally adjusted at annual rates
2005

2006

2007 r

2006

2007

IV

I

II

III

IV r

Personal income 1 ........................................................................................................................

10,301.1

10,983.4

11,659.5

11,200.2

11,469.2

11,577.3

11,735.0

11,856.6

Compensation of employees, received .....................................................................................
Wage and salary disbursements ...........................................................................................
Supplements to wages and salaries .....................................................................................
Proprietors’ income with inventory valuation and capital consumption adjustments ..............
Farm .......................................................................................................................................
Nonfarm ..................................................................................................................................
Rental income of persons with capital consumption adjustment .............................................
Personal income receipts on assets .........................................................................................
Personal interest income .......................................................................................................
Personal dividend income .....................................................................................................
Personal current transfer receipts .............................................................................................

7,024.6
5,667.9
1,356.8
969.9
30.8
939.1
42.9
1,617.8
1,018.9
598.9
1,520.7

7,440.8
6,018.2
1,422.6
1,006.7
19.4
987.4
54.5
1,796.5
1,100.2
696.3
1,612.5

7,851.7
6,359.6
1,492.1
1,042.6
36.2
1,006.4
65.4
1,947.2
1,154.7
792.5
1,731.7

7,599.9
6,153.0
1,446.9
1,009.8
23.9
985.8
50.9
1,836.6
1,102.8
733.8
1,647.7

7,764.9
6,294.4
1,470.5
1,027.4
29.1
998.3
53.2
1,882.9
1,126.1
756.8
1,710.7

7,801.9
6,318.9
1,483.0
1,038.4
33.1
1,005.3
62.1
1,930.0
1,148.4
781.6
1,717.1

7,882.7
6,382.7
1,500.0
1,048.7
38.6
1,010.0
68.4
1,976.2
1,171.1
805.0
1,742.3

7,957.2
6,442.4
1,514.8
1,055.9
43.8
1,012.1
77.8
1,999.8
1,173.2
826.6
1,756.5

Less: Contributions for government social insurance ...............................................................

874.8

927.6

979.0

944.6

969.8

972.2

983.2

990.6

Less: Personal current taxes .........................................................................................................

1,209.1

1,354.3

1,482.5

1,401.0

1,454.7

1,477.6

1,489.8

1,508.0

Equals: Disposable personal income ........................................................................................

9,092.0

9,629.1

10,177.0

9,799.2

10,014.5

10,099.7

10,245.2

10,348.6

Less: Personal outlays ...................................................................................................................

9,047.4

9,590.3

10,134.1

9,757.2

9,917.5

10,069.2

10,200.9

10,348.9

Equals: Personal saving ..............................................................................................................

44.6

38.8

42.9

42.0

97.0

30.5

44.4

–.3

Personal saving as a percentage of disposable personal income ..........................................

.5

.4

.4

.4

1.0

.3

.4

Addendum:
Disposable personal income, billions of chained (2000) dollars 2 ...........................................

8,147.9

8,396.9

8,654.4

8,510.7

8,623.9

8,607.1

8,692.1

r Revised
1. Personal income is also equal to national income less corporate profits with inventory valuation and capital
consumption adjustments, taxes on production and imports less subsidies, contributions for government social insurance, net interest and miscellaneous payments, business current transfer payments, current surplus of government
enterprises, and wage accruals less disbursements, plus personal income receipts on assets, and personal current
transfer receipts.
2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures.

0
8,695.2

Table 11.—Corporate Profits: Level and Percent Change
Billions of dollars

Percent change from preceding period

Seasonally adjusted
at annual rates
2005

2006

2007

2006

2006

2007

IV

I

II

III

Quarterly rates

Quarter one
year ago

2007

2007

2007

IV

I

II

III

IV

IV

6.1

–1.2

–3.3

2.5

8.3

–4.2

–3.2

.4

5.2
3.3

0
3.0

–3.3
2.7

3.3
12.6

9.6

–6.3

–17.3

–16.7

Corporate profits with inventory valuation and capital
consumption adjustments ...................................................... 1,372.8 1,553.7 1,595.2 1,531.2 1,547.7 1,642.4 1,621.9 1,569.0

13.2

2.7

1.1

Less: Taxes on corporate income .................................................

392.9

454.4

15.5

2.8

0

Equals: Profits after tax with inventory valuation and capital
consumption adjustments ......................................................
Net dividends .............................................................................
Undistributed profits with inventory valuation and capital
consumption adjustments ......................................................

979.9 1,099.8 1,128.6 1,078.8 1,095.2 1,152.2 1,152.5 1,114.6
601.4 698.9 795.2 736.4 759.4 784.2 807.7 829.4

12.2
16.2

2.6
13.8

1.5
3.1

285.2

5.9

–16.8

–1.9

Cash flow:
Net cash flow with inventory valuation and capital
consumption adjustments .................................................. 1,235.4 1,290.9 1,255.1 1,251.3 1,251.5 1,288.9 1,267.8 1,212.1
Undistributed profits with inventory valuation and capital
consumption adjustments ..................................................
378.6 400.9 333.5 342.4 335.8 368.0 344.7 285.2
Consumption of fixed capital .................................................
856.8 890.0 921.6 908.9 915.7 920.8 923.1 926.9

4.5

–2.8

0

3.0

–1.6

–4.4

–3.1

5.9
3.9

–16.8
3.5

–1.9
.7

9.6
.6

–6.3
.2

–17.3
.4

–16.7
2.0

Less: Inventory valuation adjustment ........................................

378.6

–36.2

453.9

400.9

–36.3

466.6

333.5

–46.2

452.4

342.4

–21.0

452.5

490.1

335.8

469.4

368.0

–40.2

344.7

–54.7

–20.3

–69.4 ............ ............ ............ ............ ............ ............ ....................

Equals: Net cash flow ............................................................. 1,271.6 1,327.2 1,301.2 1,272.2 1,291.7 1,343.6 1,288.1 1,281.5

4.4

–2.0

1.5

4.0

–4.1

–.5

.7

Addenda:
Profits before tax (without inventory valuation and capital
consumption adjustments) ..................................................... 1,579.6 1,805.8 1,876.7 1,789.2 1,815.8 1,931.5 1,879.7 1,879.9
14.3
3.9
1.5
6.4
–2.7
0
5.1
Profits after tax (without inventory valuation and capital
consumption adjustments) ..................................................... 1,186.7 1,351.9 1,410.1 1,336.8 1,363.3 1,441.4 1,410.2 1,425.5
13.9
4.3
2.0
5.7
–2.2
1.1
6.6
Inventory valuation adjustment ..................................................
–36.2 –36.3 –46.2 –21.0 –40.2 –54.7 –20.3 –69.4 ............ ............ ............ ............ ............ ............ ....................
Capital consumption adjustment ................................................ –170.6 –215.8 –235.3 –237.0 –227.9 –234.4 –237.4 –241.5 ............ ............ ............ ............ ............ ............ ....................

Table 12.—Corporate Profits by Industry: Level and Change From Preceding Period
[Billions of dollars]
Level

Change from preceding period

Seasonally adjusted at annual rates
2005

2006

2007

2006
IV

2007
I

II

2007
2006

III

2007
I

II

III

IV

IV

Corporate profits with inventory valuation and capital consumption
adjustments ............................................................................................. 1,372.8 1,553.7 1,595.2 1,531.2 1,547.7 1,642.4 1,621.9 1,569.0

180.9

41.5

16.5

94.7

–20.5

Domestic industries ............................................................................................ 1,154.6 1,296.4 1,257.7 1,253.5 1,249.8 1,327.8 1,280.9 1,172.2
Financial ............................................................................................................
405.5 482.2 473.4 495.6 468.7 521.4 488.9 414.5
Nonfinancial .......................................................................................................
749.1 814.3 784.3 757.9 781.1 806.4 792.0 757.7

141.8
76.7
65.2

–38.7
–8.8
–30.0

–3.7
–26.9
23.2

78.0
52.7
25.3

–46.9 –108.7
–32.5 –74.4
–14.4 –34.3

396.8
522.5
125.7

39.1
61.1
21.9

80.3
71.2
–9.1

20.1
10.0
–10.1

16.7
33.9
17.2

Corporate profits with inventory valuation adjustment ........................ 1,543.4 1,769.5 1,830.5 1,768.2 1,775.6 1,876.8 1,859.4 1,810.5

226.1

61.0

7.4

101.2

Domestic industries ............................................................................................ 1,325.2 1,512.2 1,493.0 1,490.4 1,477.7 1,562.1 1,518.3 1,413.7
Financial ............................................................................................................
423.6 505.3 498.5 521.0 493.0 546.4 514.2 440.3
Federal Reserve banks ................................................................................
26.6
33.8
38.4
34.8
38.5
39.2
38.4
37.6
Other financial ..............................................................................................
397.1 471.4 460.1 486.2 454.5 507.2 475.8 402.7

187.0
81.7
7.2
74.3

–19.2
–6.8
4.6
–11.3

–12.7
–28.0
3.7
–31.7

84.4
53.4
.7
52.7

–43.8 –104.6
–32.2 –73.9
–.8
–.8
–31.4 –73.1

Rest of the world ................................................................................................
Receipts from the rest of the world .................................................................
Less: Payments to the rest of the world .........................................................

Nonfinancial .......................................................................................................
Utilities ...........................................................................................................
Manufacturing ...............................................................................................
Durable goods ..........................................................................................
Fabricated metal products ...................................................................
Machinery .............................................................................................
Computer and electronic products ......................................................
Electrical equipment, appliances, and components ...........................
Motor vehicles, bodies and trailers, and parts ...................................
Other durable goods ............................................................................

218.2
358.7
140.6

257.3
419.8
162.5

337.6
491.0
153.4

277.8
438.7
160.9

297.9
448.7
150.8

314.6
482.6
168.0

341.0
510.2
169.1

–52.9

26.4
27.6
1.1

55.8
12.3
–43.4

–17.4

–48.9

901.6 1,006.9
28.4
35.7
251.2 293.4
85.1
95.9
17.3
20.3
16.0
19.3
10.1
7.7
–3.7
–1.9
.1
–1.1
45.3
51.7

994.5
44.4
305.7
121.9
25.2
21.8
8.0
2.0
9.4
55.5

969.5
37.8
280.2
107.2
22.5
18.7
6.2
.2
1.3
58.3

984.7 1,015.7 1,004.1
36.4
41.2
46.4
298.9 347.0 296.8
113.0 117.2 128.5
23.3
22.2
26.5
21.8
22.5
22.3
9.0
7.7
8.5
1.3
.7
2.4
4.6
12.3
12.1
52.9
51.8
56.7

973.4
53.7
280.3
129.2
28.8
20.4
7.0
3.6
8.7
60.7

105.3
7.3
42.2
10.8
3.0
3.3
–2.4
1.8
–1.2
6.4

–12.4
8.7
12.3
26.0
4.9
2.5
.3
3.9
10.5
3.8

15.2
–1.4
18.7
5.8
.8
3.1
2.8
1.1
3.3
–5.4

31.0
4.8
48.1
4.2
–1.1
.7
–1.3
–.6
7.7
–1.1

–11.6
5.2
–50.2
11.3
4.3
–.2
.8
1.7
–.2
4.9

–30.7
7.3
–16.5
.7
2.3
–1.9
–1.5
1.2
–3.4
4.0

Nondurable goods ....................................................................................
Food and beverage and tobacco products ........................................
Petroleum and coal products ..............................................................
Chemical products ...............................................................................
Other nondurable goods ......................................................................

166.0
27.8
89.8
29.7
18.7

197.5
29.2
110.4
37.6
20.3

183.8
33.4
86.5
43.9
20.0

173.0
31.8
85.2
31.7
24.3

185.9
30.1
94.9
41.0
20.0

229.8
35.4
136.5
41.8
16.1

168.3
34.3
70.6
43.4
20.0

151.1
33.7
44.0
49.2
24.1

31.5
1.4
20.6
7.9
1.6

–13.7
4.2
–23.9
6.3
–.3

12.9
–1.7
9.7
9.3
–4.3

43.9
5.3
41.6
.8
–3.9

–61.5
–1.1
–65.9
1.6
3.9

–17.2
–.6
–26.6
5.8
4.1

Wholesale trade ............................................................................................
Retail trade ...................................................................................................
Transportation and warehousing ..................................................................
Information ....................................................................................................
Other nonfinancial ........................................................................................

95.2
114.4
28.2
74.8
309.5

97.0
124.5
41.9
85.4
329.0

98.7
137.5
47.1
103.4
257.5

91.1
132.1
40.0
91.5
296.7

97.8
134.3
39.1
109.5
268.7

104.9
134.4
45.8
92.9
249.5

109.8
140.2
55.4
100.8
254.7

82.2
141.3
48.3
110.4
257.2

1.8
10.1
13.7
10.6
19.5

1.7
13.0
5.2
18.0
–71.5

6.7
2.2
–.9
18.0
–28.0

7.1
.1
6.7
–16.6
–19.2

4.9
5.8
9.6
7.9
5.2

–27.6
1.1
–7.1
9.6
2.5

Rest of the world ................................................................................................

218.2

257.3

337.6

277.8

297.9

314.6

341.0

396.8

39.1

80.3

20.1

16.7

26.4

55.8

NOTE.—Estimates in this table are based on the 1997 North American Industry Classification System (NAICS).

Table 13.—Gross Value Added of Nonfinancial Domestic Corporate Business
Seasonally adjusted at annual rates
2005

2006

2007

2006
IV

2007
I

II

III r

IV

Billions of dollars
Gross value added of nonfinancial corporate business ................................................................................

6,319.4

6,689.4

6,942.5

6,784.5

6,865.0

6,938.0

6,973.5

Consumption of fixed capital ..........................................................................................................................................

742.3

772.8

800.7

789.8

795.7

800.1

802.0

6,993.4
805.2

Net value added ............................................................................................................................................................

5,577.1

5,916.6

6,141.8

5,994.7

6,069.3

6,138.0

6,171.6

6,188.2

Compensation of employees .....................................................................................................................................
Wage and salary accruals .....................................................................................................................................
Supplements to wages and salaries .....................................................................................................................
Taxes on production and imports less subsidies .....................................................................................................
Net operating surplus .................................................................................................................................................
Net interest and miscellaneous payments ............................................................................................................
Business current transfer payments .....................................................................................................................
Corporate profits with inventory valuation and capital consumption adjustments ..............................................
Taxes on corporate income ..............................................................................................................................
Profits after tax with inventory valuation and capital consumption adjustments ............................................
Net dividends ................................................................................................................................................
Undistributed profits with inventory valuation and capital consumption adjustments ................................

4,078.5
3,334.8
743.6
558.7
940.0
132.5
58.3
749.1
263.4
485.7
199.2
286.5

4,316.7
3,543.8
772.9
584.9
1,015.0
133.2
67.6
814.3
288.2
526.0
448.6
77.4

4,549.6
3,742.8
806.9
610.5
981.6
137.7
59.7
784.3
311.3
473.0
490.2
–17.2

4,442.1
3,657.5
784.6
592.1
960.5
133.6
68.9
757.9
285.2
472.7
532.2
–59.5

4,494.1
3,695.5
798.6
599.7
975.6
136.0
58.5
781.1
298.6
482.5
483.7
–1.2

4,528.3
3,726.5
801.8
607.8
1,001.8
136.2
59.2
806.4
321.6
484.7
491.1
–6.4

4,568.5
3,758.5
810.1
614.2
988.8
136.9
60.0
792.0
310.0
482.0
478.0
4.0

4,607.5
3,790.6
816.9
620.3
960.3
141.5
61.1
757.7
315.1
442.6
508.0
–65.4

Addenda:
Profits before tax (without inventory valuation and capital consumption adjustments) ..........................................
Profits after tax (without inventory valuation and capital consumption adjustments) .............................................
Inventory valuation adjustment ..................................................................................................................................
Capital consumption adjustment ................................................................................................................................

937.8
674.4
–36.2
–152.5

1,043.2
755.0
–36.3
–192.7

1,040.6
729.3
–46.2
–210.2

990.4
705.3
–21.0
–211.6

1,024.9
726.3
–40.2
–203.6

1,070.5
748.8
–54.7
–209.4

1,024.5
714.5
–20.3
–212.1

1,042.8
727.7
–69.4
–215.6

Billions of chained (2000) dollars
Gross value added of nonfinancial corporate business 1 .............................................................................

5,836.9

6,011.3

6,139.4

6,062.2

6,075.5

6,119.2

6,174.9

6,188.0

Consumption of fixed capital 2 .......................................................................................................................................
Net value added 3 ...........................................................................................................................................................

682.4
5,154.5

686.9
5,324.5

706.7
5,432.7

698.1
5,364.1

701.7
5,373.8

705.1
5,414.1

708.5
5,466.4

711.7
5,476.3

1.130

Dollars; quarters seasonally adjusted
Price, costs, and profits per unit of real gross value added of nonfinancial corporate business:
Price per unit of real gross value added of nonfinancial corporate business 4 ............................................

1.083

1.113

1.131

1.119

1.130

1.134

1.129

Compensation of employees (unit labor cost) ..........................................................................................................

.699

.718

.741

.733

.740

.740

.740

.745

Unit nonlabor cost ......................................................................................................................................................
Consumption of fixed capital .................................................................................................................................
Taxes on production and imports less subsidies plus business current transfer payments ..............................
Net interest and miscellaneous payments ............................................................................................................

.256
.127
.106
.023

.260
.129
.109
.022

.261
.130
.109
.022

.261
.130
.109
.022

.261
.131
.108
.022

.262
.131
.109
.022

.261
.130
.109
.022

.263
.130
.110
.023

Corporate profits with inventory valuation and capital consumption adjustments (unit profits from current
production) .............................................................................................................................................................
Taxes on corporate income ..................................................................................................................................
Profits after tax with inventory valuation and capital consumption adjustments ................................................

.128
.045
.083

.135
.048
.088

.128
.051
.077

.125
.047
.078

.129
.049
.079

.132
.053
.079

.128
.050
.078

.122
.051
.072

r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the third quarter of 2007.
1. The current-dollar gross value added is deflated using the gross value added chain-type price index for nonfinancial industries from the GDP-by-industry accounts. For periods when this price index is not available, the chaintype price index for GDP goods and structures is used.
2. Chained-dollar consumption of fixed capital of nonfinancial corporate business is calculated as the product of

the chain-type quantity index and the 2000 current-dollar value of the corresponding series, divided by 100.
3. Chained-dollar net value added of nonfinancial corporate business is the difference between the gross value
added and the consumption of fixed capital.
4. The deflator for gross value added of nonfinancial corporate business divided by 100.
NOTE.—Estimates in this table are based on the 1997 North American Industry Classification System (NAICS).

Appendix Table A.—Real Gross Domestic Product and Related Aggregates and Price Indexes: Percent Change From Preceding Period
Seasonally adjusted at annual rates
2005

2006

2007 r

2004
I

II

2005
III

IV

I

II

2006
III

IV

I

II

2007
III

IV

I

II

III

IV r

Gross domestic product (GDP) and related
aggregates:
GDP .............................................................................

3.1

2.9

2.2

3.0

3.5

3.6

2.5

3.1

2.8

4.5

1.2

4.8

2.4

1.1

2.1

0.6

3.8

4.9

0.6

Goods ..........................................................................
Services .......................................................................
Structures ....................................................................

4.3
2.3
3.4

5.0
2.3
–.1

3.3
2.9
–4.7

2.1
3.8
1.0

3.4
2.2
11.5

6.6
2.4
1.3

3.7
2.4
–.3

4.2
2.3
4.0

3.9
1.4
7.3

5.8
4.4
1.2

1.5
1.0
1.2

9.6
2.4
4.3

4.6
2.0
–1.4

3.4
2.0
–9.9

1.1
4.4
–7.0

.2
2.1
–6.2

5.4
3.1
3.0

11.7
3.1
–4.2

–1.6
3.1
–7.0

Motor vehicle output ...................................................
GDP excluding motor vehicle output ..........................

4.2
3.0

–1.3
3.0

–2.1
2.3

8.8
2.8

–6.1
3.8

29.0
2.8

–9.6
3.0

5.4
3.0

4.7
2.7

15.1 –21.6
.6
2.9

6.2
.4

1.0
3.9

13.1 –26.0
4.7
1.5

Final sales of computers 1 ..........................................
GDP excluding final sales of computers ....................

35.1
2.9

19.4
2.8

20.3 –31.0
2.1
3.3

–6.6
3.6

19.8
3.5

50.1
2.3

39.5
2.8

51.7
2.5

21.8
4.3

34.2
1.0

7.3
4.8

–1.3
.6

35.7
3.6

Farm gross value added 2 ..........................................

5.9

.6

–.3 149.5 –30.8

18.9

40.8 –10.9

14.0

–3.0

6.0

–8.9

.8 –12.5

Nonfarm business gross value added 3 .....................

3.6

3.2

2.3

2.6

5.0

3.8

2.6

3.9

3.2

5.6

.9

5.7

2.4

.8

2.6

.3

Price indexes:
GDP .............................................................................
GDP excluding food and energy ................................
GDP excluding final sales of computers ....................

3.2
3.2
3.4

3.2
3.1
3.3

2.7
2.4
2.8

3.7
3.5
3.8

3.8
3.4
3.8

2.3
2.8
2.4

3.2
3.1
3.4

3.9
4.1
4.1

2.6
2.6
2.7

3.5
2.9
3.6

3.5
3.5
3.7

3.4
3.4
3.5

3.5
3.2
3.6

2.4
2.6
2.5

1.7
2.4
1.8

3.7

3.3

2.7

4.3

4.2

2.8

3.6

3.6

3.5

4.6

3.7

2.7

4.2

2.5

30.6 –30.5
3.6
2.5

17.0 –10.9
4.4
2.9
20.7
2.3

5.1
1.0

17.5 –12.4

27.0
1.9

49.8
4.6

26.6
.4

14.8

9.6

–3.3

4.2

5.6

.2

4.2
3.3
4.3

2.6
1.6
2.8

1.0
1.7
1.2

2.4
2.1
2.6

.1

3.8

3.8

1.8

3.7

Gross domestic purchases .........................................
Gross domestic purchases excluding food and
energy .....................................................................
Gross domestic purchases excluding final sales of
computers to domestic purchasers ........................

3.1

2.9

2.4

3.5

3.4

2.6

2.8

4.0

2.6

2.7

3.2

3.2

3.2

2.5

2.3

3.1

1.5

1.9

2.3

3.9

3.5

2.8

4.4

4.3

2.9

3.9

3.8

3.7

4.8

3.9

2.9

4.5

2.7

.2

3.9

4.0

1.9

3.9

Personal consumption expenditures (PCE) ...............
PCE excluding food and energy ................................
Market-based PCE 4 ...................................................
Market-based PCE excluding food and energy 4 ......

2.9
2.2
2.7
1.7

2.8
2.2
2.6
1.9

2.5
2.1
2.5
1.9

3.5
2.4
3.2
1.8

3.8
2.7
3.4
1.9

2.0
1.7
1.5
1.1

3.0
2.1
2.9
1.8

2.2
2.6
1.9
2.3

3.4
2.1
3.1
1.5

4.3
1.7
4.3
1.2

2.8
2.4
2.6
1.9

1.7
2.0
1.5
1.8

4.3
2.9
4.3
2.6

2.6
2.3
2.4
2.1

–.9
1.9
–1.6
1.6

3.5
2.4
3.6
2.4

4.3
1.4
4.7
1.2

1.8
2.0
1.4
1.5

3.9
2.5
4.0
2.3

r
1.
2.
3.

Revised
Some components of final sales of computers include computer parts.
Farm output less intermediate goods and services purchased.
Consists of GDP less gross value added of farm, of households and institutions, and of general government.

4. This index is a supplemental measure that is based on household expenditures for which there are observable
price measures. It excludes most implicit prices (for example, the services furnished without payment by financial
intermediaries) and the expenses of nonprofit institutions.
See ‘‘Explanatory Note’’ at the end of the tables.

Explanatory Note: NIPA Measures of Quantities and Prices
Current-dollar GDP is a measure of the market value of goods, services, and structures produced in the
economy in a particular period. Changes in current-dollar GDP can be decomposed into quantity and
price components. Quantities, or “real” measures, and prices are expressed as index numbers with the
reference year -- at present, the year 2000 -- equal to 100.
Annual changes in quantities and prices are calculated using a Fisher formula that incorporates weights
from two adjacent years. (Quarterly changes in quantities and prices are calculated using a Fisher
formula that incorporates weights from two adjacent quarters; quarterly indexes are adjusted for
consistency to the annual indexes before percent changes are calculated.) For example, the 2005-06
annual percent change in real GDP uses prices for 2005 and 2006 as weights, and the 2005-06 annual
percent change in GDP prices uses quantities for 2005 and 2006 as weights. These annual changes are
“chained” (multiplied) together to form time series of quantity and price indexes. Percent changes in
Fisher indexes are not affected by the choice of reference year. (BEA also publishes a measure of the
price level known as the implicit price deflator (IPD), which is calculated as the ratio of the current-dollar
value to the corresponding chained-dollar value, multiplied by 100. The values of the IPD are very close
to the values of the corresponding "chain-type" price index.)
Index numbers of quantity and price indexes for GDP and its major components are presented in this
release in tables 5 and 6. Percent changes from the preceding period are presented in tables 1, 4, 7, 8, and
Appendix Table A. Contributions by major components to changes in real GDP are presented in table 2.
Measures of real GDP and its major components are also presented in dollar-denominated form,
designated "chained (2000) dollar estimates." For most series, these estimates, which are presented in
table 3, are computed by multiplying the current-dollar value in 2000 by a corresponding quantity index
number and then dividing by 100. For example, if a current-dollar GDP component equaled $100 in 2000
and if real output for this component increased 10 percent in 2001, then the chained (2000) dollar value of
this component in 2001 would be $110 (= $100 x 110 / 100). Percent changes calculated from
chained-dollar estimates and from chain-type quantity indexes are the same; any differences will be small
and due to rounding.
Chained-dollar values for the detailed GDP components will not necessarily sum to the chained-dollar
estimate of GDP (or to any intermediate aggregate). This is because the relative prices used as weights
for any period other than the reference year differ from those of the reference year. A measure of the
extent of such differences is provided by a “residual” line, which indicates the difference between GDP
(or other major aggregate) and the sum of the most detailed components in the table. For periods close to
the reference year, when there usually has not been much change in the relative prices that are used as
weights, the residuals tend to be small, and the chained-dollar estimates can be used to approximate the
contributions to growth and to aggregate the detailed estimates. For periods further from the reference
year, the residuals tend to be larger, and the chained-dollar estimates are less useful for analyses of
contributions to growth. Thus, the contributions to percent change shown in table 2 provide a better
measure of the composition of GDP growth. In particular, for components for which relative prices are
changing rapidly, calculation of contributions using chained-dollar estimates may be misleading even just
a few years from the reference year.
Reference: “Chained-Dollar Indexes: Issues, Tips on Their Use, and Upcoming Changes,” November
2003 Survey, pp. 8-16.