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NEWS RELEASE EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, THURSDAY, JUNE 26, 2008 Virginia H. Mannering: Andrew Hodge: Recorded message: (202) 606-5304 (GDP) (202) 606-5564 (Profits) (202) 606-5306 BEA 08-30 GROSS DOMESTIC PRODUCT: FIRST QUARTER 2008 (FINAL) CORPORATE PROFITS: FIRST QUARTER 2008 (FINAL) 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 1.0 percent in the first quarter of 2008 (that is, from the fourth quarter to the first quarter), according to final estimates released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 0.6 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 0.9 percent (see "Revisions" on page 3). The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE) for services, exports of goods and services, and federal government spending that were partly offset by negative contributions from residential fixed investment and PCE for durable goods. Annual Revision of the National Income and Product Accounts The annual revision of the national income and product accounts, covering the first quarter of 2005 through the first quarter of 2008, will be released along with the “advance” estimate of GDP for the second quarter of 2008 on July 31. An article describing the revision will appear in the August 2008 issue of the Survey of Current Business. For more information, see the Technical Note. 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. - more - - 2The small acceleration in real GDP primarily reflected an upturn in inventory investment that was partly offset by a deceleration in PCE. Final sales of computers contributed 0.09 percentage point to the first-quarter growth in real GDP after contributing 0.16 percentage point to the fourth-quarter growth. Motor vehicle output subtracted 0.48 percentage point from the first-quarter growth in real GDP after subtracting 0.86 percentage point from the fourth-quarter growth. The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 3.6 percent in the first quarter, 0.1 percentage point more than the preliminary estimate; this index increased 3.7 percent in the fourth quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 2.3 percent in the first quarter, the same as in the fourth. About 0.3 percentage point of the first-quarter increase in the index was accounted for by the pay raise for federal civilian and military personnel, which is treated as an increase in the prices of employee services purchased by the federal government. Real personal consumption expenditures increased 1.1 percent in the first quarter, compared with an increase of 2.3 percent in the fourth. Real nonresidential fixed investment increased 0.6 percent, compared with an increase of 6.0 percent. Nonresidential structures increased 1.2 percent, compared with an increase of 12.4 percent. Equipment and software increased 0.2 percent, compared with an increase of 3.1 percent. Real residential fixed investment decreased 24.6 percent, compared with a decrease of 25.2 percent. Real exports of goods and services increased 5.4 percent in the first quarter, compared with an increase of 6.5 percent in the fourth. Real imports of goods and services decreased 0.7 percent, compared with a decrease of 1.4 percent. Real federal government consumption expenditures and gross investment increased 4.3 percent in the first quarter, compared with an increase of 0.5 percent in the fourth. National defense increased 5.6 percent, in contrast to a decrease of 0.5 percent. Nondefense increased 1.7 percent, compared with an increase of 2.8 percent. Real state and local government consumption expenditures and gross investment increased 0.8 percent, compared with an increase of 2.8 percent. The real change in private inventories added 0.02 percentage point to the first-quarter change in real GDP, after subtracting 1.79 percentage points from the fourth-quarter change. Private businesses decreased inventories $19.6 billion in the first quarter, following a decrease of $18.3 billion in the fourth quarter and an increase of $30.6 billion in the third. Real final sales of domestic product -- GDP less change in private inventories -- increased 0.9 percent in the first quarter, compared with an increase of 2.4 percent in the fourth. Gross domestic purchases Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 0.2 percent in the first quarter, in contrast to a decrease of 0.4 percent in the fourth. - more - - 3Gross national product Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- increased 0.2 percent in the first quarter, compared with an increase of 1.9 percent in the fourth. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which decreased $22.7 billion in the first quarter after increasing $37.6 billion in the fourth; in the first quarter, receipts decreased $58.5 billion, and payments decreased $35.8 billion. Current-dollar GDP Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 3.7 percent, or $126.9 billion, in the first quarter to a level of $14,201.1 billion. In the fourth quarter, current-dollar GDP increased 3.0 percent, or $103.7 billion. Revisions The final estimate of the first-quarter increase in real GDP is 0.1 percentage point, or $1.7 billion, higher than the preliminary estimate issued last month. The small upward revision to the percent change in real GDP primarily reflected upward revisions to exports, to personal consumption expenditures, and to equipment and software that were largely offset by an upward revision to imports and a downward revision to private nonfarm inventory investment. Preliminary Final Advance (Percent change from preceding quarter) Real GDP............................................... Current-dollar GDP............................... Gross domestic purchases price index... 0.6 3.2 3.5 0.9 3.5 3.5 1.0 3.7 3.6 Corporate Profits Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $5.2 billion in the first quarter, compared with a decrease of $52.9 billion in the fourth quarter. Current-production cash flow (net cash flow with inventory valuation and capital consumption adjustments) -- the internal funds available to corporations for investment -increased $15.1 billion in the first quarter, in contrast to a decrease of $55.7 billion in the fourth. Taxes on corporate income decreased $32.6 billion in the first quarter, compared with a decrease of $15.0 billion in the fourth. Profits after tax with inventory valuation and capital consumption adjustments increased $27.3 billion, in contrast to a decrease of $37.9 billion. Dividends increased $16.8 billion, compared with an increase of $21.7 billion; current-production undistributed profits increased $10.6 billion, in contrast to a decrease of $59.5 billion. - more - - 4Domestic profits of financial corporations increased $14.2 billion in the first quarter, in contrast to a decrease of $74.4 billion in the fourth. Domestic profits of nonfinancial corporations increased $3.4 billion, in contrast to a decrease of $34.3 billion. In the first quarter, real gross corporate value added increased. Profits per unit of real value added were unchanged, reflecting an increase in unit prices and a decrease in unit nonlabor costs that were offset by an increase in unit labor costs. The rest-of-the-world component of profits decreased $22.8 billion in the first quarter, in contrast to an increase of $55.8 billion in the fourth. 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 first-quarter decrease was accounted for by a much smaller increase in receipts than in payments. Profits before tax decreased $144.2 billion in the first quarter, in contrast to an increase of $0.2 billion in the fourth (see “Provisions of the Economic Stimulus Act of 2008” below). 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 increased $167.7 billion in the first quarter (from -$241.5 billion to -$73.8 billion), in contrast to a decrease of $4.1 billion in the fourth. The inventory valuation adjustment decreased $28.7 billion (from -$69.4 billion to -$98.1 billion), compared with a decrease of $49.1 billion. 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. The decrease in nonfinancial corporations reflected decreases in all the aggregate industries shown except information; the largest decrease was in manufacturing. Within manufacturing, all the detailed industries shown decreased except petroleum; the largest decrease was in “other durable goods.” Provisions of the Economic Stimulus Act of 2008 The Economic Stimulus Act of 2008 provided for a first-year bonus depreciation of 50 percent for qualifying property purchased and put in place in 2008. The law also raised the ceiling for small business expensing under Internal Revenue Code Section 179 from $128,000 to $250,000. Profits from current production are not affected because they do not depend on the depreciationaccounting practices used for federal income tax returns; rather, they are based on depreciation of fixed assets valued at current cost and using consistent depreciation profiles based on used-asset prices. The additional depreciation provided for by the 2008 Act is estimated to have increased tax-based depreciation expenses in the first quarter by $139.7 billion (annual rate) and reduced profits before tax, which is based on earnings reported on tax returns, by the same amount. The capital consumption adjustment, which is the difference between the depreciation specified in the tax code and the depreciation underlying profits from current production, also increased by the same amount because the Act raised tax depreciation by $139.7 billion. (First-quarter profits tax liability was reduced by $37.8 billion, and profits after tax were reduced by $102.0 billion.) - more - - 5As with corporate profits from current production, the effects of the provisions of the Act on nonfarm proprietors’ income with capital consumption and inventory valuation adjustments (table 10) were offsetting; nonfarm proprietors’ income without these adjustments was reduced, and the related capital consumption adjustment was increased by the same amount. The other major national income and product account components and aggregates shown in this release were not affected. * * * BEA’s 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 – July 31, 2008, at 8:30 A.M. EDT for: Advance estimate of gross domestic product for the second quarter of 2008 and annual revision (first quarter 2005 through first quarter 2008). - more - Table 1. Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period Seasonally adjusted at annual rates 2005 2006 2007 2004 II III 2005 IV I II 2006 III IV I II 2007 III IV I II 2008 III IV Ir Gross domestic product (GDP)................ 3.1 2.9 2.2 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 1.0 Personal consumption expenditures.................. 3.2 3.1 2.9 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 1.1 Durable goods .................................................... 4.9 3.8 4.7 1.9 7.8 7.0 2.2 11.3 6.2 –13.0 16.6 0.8 5.6 3.9 8.8 1.7 4.5 2.0 –6.0 Nondurable goods .............................................. 3.6 3.6 2.4 1.5 3.1 4.9 3.5 3.7 2.5 4.7 4.5 2.3 3.2 4.3 3.0 –0.5 2.2 1.2 –0.2 Services.............................................................. 2.7 2.7 2.8 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 3.1 Gross private domestic investment .................... 5.6 2.7 –4.9 20.7 8.0 6.4 5.3 –3.9 7.0 13.4 4.3 0.6 –4.1 –14.1 –8.2 4.6 5.0 –14.6 –6.9 Fixed investment ................................................. 6.9 2.4 –2.9 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 –0.7 –4.0 –6.9 Nonresidential ................................................. 7.1 6.6 4.7 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 0.6 Structures.................................................... 0.5 8.4 12.9 6.1 3.6 –0.2 2.1 –1.6 –6.3 4.8 15.0 16.4 10.8 7.4 6.4 26.2 16.4 12.4 1.2 Equipment and software ............................. 9.6 5.9 1.3 12.4 15.5 14.3 3.8 7.4 14.5 3.1 13.0 –0.1 2.9 –4.9 0.3 4.7 6.2 3.1 0.2 Residential ...................................................... 6.6 –4.6 –17.0 16.7 4.2 2.4 5.3 13.1 6.9 0.5 –0.7 –11.7 –20.4 –17.2 –16.3 –11.8 –20.5 –25.2 –24.6 Change in private inventories ............................. ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... Net exports of goods and services..................... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... Exports ............................................................... 6.9 8.4 8.1 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 5.4 Goods ............................................................. 7.5 9.9 7.9 7.2 6.2 7.2 5.8 13.6 1.9 12.6 15.5 6.5 7.4 9.6 0.9 6.6 26.2 3.9 4.4 Services .......................................................... 5.4 4.8 8.5 5.1 –3.4 16.8 6.5 0.9 2.6 6.3 2.9 3.9 2.0 26.0 1.6 9.6 4.0 13.2 7.9 Imports................................................................ 5.9 5.9 1.9 15.2 4.8 13.8 2.1 0.8 2.1 16.2 6.9 0.9 5.4 1.6 3.9 –2.7 4.4 –1.4 –0.7 Goods ............................................................. 6.6 6.0 1.6 16.6 5.5 14.5 3.2 1.0 2.5 17.3 6.5 1.1 6.2 –0.6 4.2 –2.9 4.8 –2.6 –1.9 Services .......................................................... 2.3 5.2 3.5 8.9 1.8 10.5 –3.5 –0.5 0.0 10.3 9.5 –0.1 1.3 14.2 2.3 –1.7 1.7 5.5 6.0 Government consumption expenditures and gross investment .............................................. 0.7 1.8 2.0 1.3 1.6 –1.8 1.3 1.2 3.2 –1.9 4.9 1.0 0.8 3.5 –0.5 4.1 3.8 2.0 2.1 Federal................................................................ 1.5 2.2 1.7 2.4 6.2 –4.6 2.8 0.7 8.6 –6.2 8.4 –1.6 0.9 7.3 –6.3 6.0 7.1 0.5 4.3 National defense ............................................. 1.5 1.9 2.8 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 –0.5 5.6 Nondefense..................................................... 1.3 2.8 –0.4 3.2 –2.7 6.5 –0.8 –3.0 5.8 5.8 11.9 –8.8 6.0 –10.0 3.8 0.9 1.1 2.8 1.7 State and local .................................................... 0.3 1.6 2.2 0.7 –1.1 –0.1 0.4 1.5 0.0 0.7 2.9 2.5 0.7 1.3 3.0 3.0 1.9 2.8 0.8 Addenda: Final sales of domestic product .......................... 3.3 2.8 2.5 2.4 3.8 2.7 2.9 4.8 4.6 –0.5 5.4 2.0 1.0 3.5 1.3 3.6 4.0 2.4 0.9 Gross domestic purchases ................................. 3.1 2.8 1.5 4.8 3.8 3.4 2.6 1.9 4.3 2.5 4.5 1.9 1.3 0.8 1.1 2.4 3.3 –0.4 0.2 Final sales to domestic purchasers .................... 3.3 2.7 1.8 3.7 4.0 3.6 2.4 3.7 4.5 0.8 5.0 1.5 1.2 2.1 1.7 2.1 2.5 1.3 0.1 Gross national product (GNP) ............................ 3.0 2.8 2.4 2.6 3.9 1.5 3.6 2.7 5.1 0.0 5.2 2.4 0.5 2.6 0.7 4.0 5.8 1.9 0.2 Disposable personal income............................... 1.7 3.1 3.1 2.4 2.9 7.5 –3.3 2.5 –1.2 6.6 4.9 0.2 1.7 6.2 5.4 –0.8 4.0 0.9 1.4 Current-dollar measures: GDP ................................................................ 6.4 6.1 4.9 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 3.7 Final sales of domestic product ...................... 6.6 6.1 5.3 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 3.7 Gross domestic purchases ............................. 6.9 6.1 4.2 9.2 6.7 7.2 6.3 5.5 9.1 6.3 7.3 6.2 3.8 0.9 4.9 6.2 5.1 3.3 3.7 Final sales to domestic purchasers................. 7.1 6.1 4.6 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 3.8 GNP ................................................................ 6.3 6.0 5.2 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 2.8 Disposable personal income........................... 4.7 5.9 5.7 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 4.9 5.1 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 2006 2007 2004 II 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. III 2005 IV 3.1 2.9 2.2 3.5 3.6 2.5 2.24 0.40 0.00 0.31 0.09 0.72 0.38 0.17 –0.02 0.19 1.12 0.33 0.08 0.04 0.03 0.03 0.41 0.06 0.21 0.91 1.09 0.70 0.01 0.69 2.15 0.31 –0.11 0.35 0.07 0.74 0.38 0.13 –0.01 0.23 1.11 0.28 –0.03 –0.05 0.02 0.03 0.40 0.09 0.34 0.45 0.39 0.68 0.24 0.44 2.02 0.36 0.07 0.23 0.06 0.48 0.22 0.12 –0.03 0.17 1.18 0.25 0.12 0.09 0.03 0.08 0.33 0.11 0.29 –0.82 –0.48 0.49 0.40 0.10 1.73 0.16 –0.11 0.27 0.00 0.31 0.10 –0.13 0.04 0.29 1.25 0.25 0.06 –0.05 0.11 0.08 0.45 0.12 0.29 3.00 1.88 1.00 0.15 0.85 2.46 0.64 0.17 0.36 0.10 0.62 0.21 0.15 –0.03 0.29 1.21 0.29 0.06 –0.05 0.12 0.02 0.52 0.09 0.22 1.26 1.41 1.16 0.09 1.07 2.93 0.57 0.23 0.25 0.09 0.97 0.60 0.23 0.00 0.14 1.39 0.31 0.15 0.15 0.01 0.06 0.40 0.03 0.44 1.04 1.14 1.00 0.00 1.01 0.34 0.27 0.29 0.15 0.24 0.41 I 3.1 II 2.8 1.68 2.40 0.18 0.90 –0.27 0.48 0.31 0.28 0.13 0.14 0.71 0.74 0.31 0.38 0.18 0.27 0.05 –0.11 0.17 0.20 0.79 0.76 0.36 0.36 0.04 –0.02 0.03 –0.04 0.01 0.02 0.02 0.01 0.27 0.38 0.09 0.03 0.00 0.00 0.89 –0.64 0.68 1.26 0.36 0.51 0.06 –0.04 0.30 0.55 0.46 0.32 2006 III 4.5 IV 1.2 2.82 0.84 0.51 –1.13 0.20 –1.57 0.39 0.35 –0.08 0.09 0.50 0.93 0.49 0.40 0.00 0.29 –0.11 0.06 0.13 0.18 1.81 1.05 0.36 0.30 0.33 –0.22 0.29 –0.21 0.04 –0.01 0.01 0.03 0.53 0.53 0.06 0.08 0.53 0.32 1.15 2.13 1.28 0.38 0.87 0.35 –0.17 0.12 1.04 0.23 4.8 II 2007 III 2.4 1.1 3.00 1.63 1.23 0.07 0.48 –0.04 0.54 0.17 0.22 –0.06 0.91 0.47 0.47 0.13 0.11 0.05 0.02 0.02 0.31 0.27 0.86 1.10 0.30 0.23 –0.40 0.17 –0.42 0.14 0.02 0.03 0.06 –0.03 0.49 0.26 0.07 0.02 0.34 0.45 0.78 0.13 1.27 –0.32 1.31 0.44 0.39 0.45 0.92 –0.01 1.88 0.43 0.16 0.24 0.04 0.64 0.24 0.14 0.05 0.20 0.81 0.18 0.16 0.17 –0.01 0.06 0.12 0.19 0.11 –0.70 –0.80 0.53 0.31 0.21 IV 2.1 I II 2008 III IV Ir 0.6 3.8 4.9 0.6 1.0 2.68 2.56 0.30 0.67 0.00 0.35 0.25 0.28 0.05 0.04 0.86 0.61 0.68 0.16 0.10 0.22 –0.15 0.06 0.23 0.17 1.52 1.28 0.20 0.26 0.13 0.04 0.07 0.03 0.07 0.01 0.11 0.07 0.34 0.47 0.30 0.06 0.44 0.39 –2.50 –1.36 –1.19 –0.70 –0.15 0.22 0.23 0.20 –0.38 0.02 1.00 0.14 –0.10 0.13 0.11 –0.10 –0.14 0.06 –0.12 0.10 0.96 0.29 0.05 0.02 0.03 0.11 0.28 0.03 0.19 0.71 0.49 1.12 0.78 0.34 2.01 0.35 –0.17 0.31 0.20 0.46 0.13 0.17 –0.02 0.18 1.20 0.27 0.23 0.21 0.02 0.09 0.27 0.10 0.24 0.77 –0.11 0.96 0.52 0.44 1.58 0.15 0.09 0.13 –0.06 0.25 0.39 –0.10 –0.04 –0.01 1.18 0.34 0.22 0.19 0.03 0.07 0.51 0.00 0.03 –2.40 –0.62 0.63 0.41 0.22 0.81 –0.47 –0.44 0.03 –0.06 –0.03 0.15 0.05 –0.18 –0.05 1.31 0.23 0.13 0.19 –0.06 0.06 0.62 –0.12 0.39 –1.04 –1.06 0.06 0.04 0.02 0.26 0.48 0.05 0.24 –0.06 0.56 0.36 0.24 0.51 0.30 0.17 0.12 0.12 0.04 0.19 0.24 0.10 0.06 0.10 0.00 0.11 0.17 0.08 0.10 0.07 0.12 –0.06 0.00 0.09 0.05 0.02 0.09 0.19 0.06 0.13 0.09 –0.15 0.52 0.43 0.40 0.12 0.04 –0.06 0.09 0.20 0.13 0.39 –0.29 –0.98 0.89 0.24 0.14 –0.18 0.06 –0.33 1.12 –0.14 –0.11 –0.07 0.00 0.04 0.37 –0.32 –0.14 –0.11 0.06 –0.37 0.75 0.18 0.03 –0.23 –0.08 0.59 –1.50 –0.42 –1.07 0.70 0.88 0.91 0.64 0.31 0.97 0.53 0.73 0.62 0.48 0.42 0.49 0.17 0.16 0.28 0.16 –0.11 0.49 –0.92 –0.96 –0.32 –2.14 –0.73 –2.04 –0.86 –0.83 –0.22 –1.92 –0.69 –1.78 –0.06 –0.13 –0.09 –0.21 –0.05 –0.26 0.13 0.19 0.07 0.14 0.26 –0.01 0.15 –0.12 –0.34 0.14 0.04 0.21 0.32 0.75 0.21 –1.90 –0.25 0.13 0.46 –2.04 0.26 0.83 0.60 0.95 0.40 0.92 0.20 0.03 –0.34 –0.12 –0.43 –0.13 0.09 0.01 0.11 0.23 0.02 0.05 0.19 –0.01 0.23 0.11 0.40 –0.21 0.09 0.07 0.42 0.03 –0.14 1.74 0.12 0.01 –0.26 1.73 –0.10 –1.41 0.22 1.07 0.14 0.87 0.08 0.20 –0.32 –2.47 –0.32 –2.22 0.00 –0.26 0.06 0.08 0.34 –0.08 0.46 0.06 –0.05 –0.49 –0.04 –0.45 0.13 1.19 1.10 0.10 –1.07 –0.83 –0.24 0.11 0.03 –0.09 0.17 –0.24 0.00 –0.76 0.46 –0.23 0.69 0.49 0.61 0.49 0.13 –0.12 –0.12 0.00 0.09 0.05 0.10 –0.04 0.10 –0.09 –1.33 0.10 0.10 0.01 –0.25 0.62 0.56 0.07 –0.88 –0.84 –0.03 0.03 0.04 –0.12 –0.08 –0.18 –0.05 –1.04 –1.31 0.25 –1.56 1.25 1.51 0.73 0.78 –0.26 0.09 –0.35 0.25 0.14 0.18 –0.04 –0.20 –0.30 –0.93 –0.65 0.04 –0.69 –0.51 0.13 0.07 0.05 –0.63 –0.57 –0.06 0.08 0.16 0.11 0.19 –0.32 0.11 –0.62 0.22 –0.05 0.27 1.32 0.85 0.53 0.33 0.47 0.42 0.05 0.08 0.07 0.09 0.10 0.03 0.07 –1.08 0.89 0.01 0.87 1.38 2.10 1.96 0.14 –0.72 –0.67 –0.05 0.20 0.18 0.13 –0.18 –0.19 0.08 –1.25 –1.79 –0.09 –1.69 1.02 0.77 0.33 0.45 0.24 0.39 –0.15 0.12 0.17 0.00 0.04 –0.16 –0.16 –1.12 0.02 –0.14 0.16 0.79 0.66 0.38 0.28 0.12 0.28 –0.16 0.14 0.11 0.07 0.04 0.03 0.03 0.01 0.02 0.04 0.07 –0.03 0.35 0.15 0.09 0.05 0.04 0.06 0.05 0.02 0.19 0.13 0.06 0.39 0.12 0.13 0.13 0.01 –0.01 0.00 –0.01 0.27 0.18 0.09 0.25 0.17 0.09 0.03 0.06 0.08 0.03 0.05 0.09 0.02 0.07 0.25 0.19 0.22 0.26 –0.05 –0.02 –0.02 0.00 0.05 0.02 0.03 0.22 0.05 0.12 0.01 0.11 –0.07 –0.08 0.01 0.17 0.09 0.08 0.60 0.59 0.46 0.41 0.05 0.13 0.07 0.06 0.01 0.12 –0.11 –0.37 –0.46 –0.59 –0.57 –0.02 0.13 0.06 0.07 0.09 0.09 0.00 0.92 0.57 0.31 0.30 0.01 0.27 0.23 0.04 0.35 0.15 0.20 0.18 –0.11 0.11 –0.05 0.15 –0.22 –0.15 –0.07 0.29 0.11 0.18 0.14 0.06 –0.07 0.00 –0.07 0.14 0.13 0.01 0.08 0.18 –0.10 0.66 –0.09 0.50 –0.46 0.74 –0.54 0.60 –0.40 0.15 –0.14 –0.24 0.08 –0.23 0.14 –0.02 –0.06 0.16 0.36 0.19 0.20 –0.03 0.17 0.79 0.41 0.39 0.35 0.04 0.02 –0.02 0.04 0.37 0.19 0.18 0.74 0.50 0.47 0.39 0.08 0.03 0.04 –0.01 0.24 0.13 0.11 0.38 0.04 –0.03 0.05 –0.08 0.06 0.04 0.02 0.34 0.22 0.12 0.41 0.30 0.27 0.24 0.03 0.04 0.03 0.01 0.10 0.23 –0.12 1.36 1.36 0.35 0.14 0.22 1.53 1.36 –0.01 –0.04 0.13 1.02 1.68 –0.51 –0.07 0.13 1.10 1.27 1.11 –0.21 –0.04 1.32 1.34 0.42 0.18 0.24 1.23 0.82 0.76 0.16 0.31 1.83 2.50 0.14 0.92 0.15 0.49 0.56 0.14 –1.21 0.22 2.95 1.39 0.48 0.51 0.05 1.45 1.15 –0.16 –0.37 0.13 1.06 1.15 –1.14 0.44 0.03 0.36 2.50 –0.77 –0.74 0.16 1.65 1.85 0.32 0.03 0.21 3.48 1.86 –0.43 0.36 0.28 –0.49 1.80 –0.73 –0.86 0.16 0.27 1.93 –1.24 –0.48 0.09 0.30 –0.35 0.43 –0.33 0.49 –0.48 0.34 –0.45 0.15 –0.04 –0.06 0.15 –0.04 0.12 –0.03 0.03 –0.13 –0.01 0.04 0.11 –0.17 –0.12 2.06 1.40 0.14 0.87 0.13 1.18 1.41 –0.03 –0.34 0.29 0.32 I 0.06 1.21 –0.68 0.18 –0.01 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 2007 2007 I Gross domestic product .................................. 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 ............................................ Residual ..................................................................... Addenda: Final sales of domestic product .............................. Gross domestic purchases ..................................... Final sales to domestic purchasers ........................ Gross domestic product ...................................... Plus: Income receipts from the rest of the world .... Less: Income payments to the rest of the world ..... Equals: Gross national product .......................... II 2008 III IV Change from preceding period Seasonally adjusted at annual rates I 2007 r 2007 I II 2008 III IV I 13,841.3 13,551.9 13,768.8 13,970.5 14,074.2 14,201.1 11,566.8 11,412.6 11,520.1 11,658.9 11,675.7 11,703.6 9,734.2 9,540.5 9,674.0 9,785.7 9,936.6 10,053.7 8,277.8 8,215.7 8,244.3 8,302.2 8,349.1 8,372.9 1,078.2 1,074.0 1,074.7 1,081.6 1,082.5 1,065.5 1,235.4 1,223.2 1,228.4 1,241.9 1,248.1 1,229.1 441.2 444.5 441.5 437.5 441.3 424.2 446.9 451.5 448.2 442.3 445.4 429.7 416.1 414.2 414.5 418.6 417.1 416.4 593.6 579.9 585.9 601.0 607.7 609.2 221.0 215.3 218.8 225.6 224.1 224.8 222.2 216.6 220.2 227.2 224.9 222.9 2,833.2 2,759.4 2,822.7 2,846.3 2,904.5 2,949.9 2,392.8 2,386.6 2,383.8 2,396.8 2,404.2 2,403.2 1,336.4 1,312.2 1,322.7 1,342.4 1,368.2 1,389.8 1,117.0 1,115.3 1,111.4 1,115.0 1,126.4 1,130.7 370.5 371.1 368.4 372.4 370.0 371.5 409.1 405.1 407.5 413.7 409.9 412.0 364.2 320.9 373.6 365.9 396.4 414.0 196.2 198.2 195.9 195.6 194.9 191.8 762.2 755.1 758.1 765.6 769.9 774.6 686.6 681.7 684.7 690.2 689.9 688.3 5,822.8 5,707.1 5,776.5 5,857.8 5,949.7 6,038.2 4,674.8 4,630.7 4,656.7 4,689.5 4,722.4 4,758.9 1,465.9 1,435.1 1,455.4 1,474.9 1,498.3 1,517.3 1,175.6 1,163.7 1,171.6 1,178.9 1,188.3 1,194.7 531.1 520.0 526.2 533.3 544.8 554.6 426.0 420.1 421.6 427.9 434.2 437.8 226.9 220.6 223.5 227.3 236.1 246.2 157.1 153.1 153.6 158.5 163.1 167.7 304.2 299.4 302.7 305.9 308.7 308.4 268.5 267.1 268.1 268.8 269.9 267.9 358.4 349.6 355.1 362.5 366.6 372.8 300.2 296.0 299.2 301.7 303.8 305.4 1,689.3 1,656.9 1,674.6 1,695.0 1,730.7 1,757.6 1,336.0 1,323.2 1,330.8 1,338.0 1,352.1 1,369.1 402.2 395.3 400.2 404.6 408.6 407.9 334.0 332.0 332.7 335.6 335.5 332.2 1,375.8 1,350.1 1,365.0 1,387.5 1,400.6 1,428.1 1,101.5 1,094.1 1,099.3 1,105.8 1,106.8 1,117.6 2,125.4 2,117.3 2,139.1 2,162.9 2,082.1 2,038.9 1,825.5 1,816.9 1,837.4 1,859.9 1,787.7 1,756.1 2,122.4 2,118.9 2,133.9 2,127.5 2,109.5 2,069.2 1,819.5 1,815.2 1,829.3 1,826.0 1,807.5 1,775.3 1,481.8 1,431.4 1,469.1 1,500.1 1,526.5 1,529.1 1,368.4 1,321.7 1,356.6 1,387.3 1,407.8 1,409.7 472.1 439.6 464.5 483.1 501.3 505.1 303.4 282.6 299.5 311.1 320.3 321.3 1,009.7 991.8 1,004.5 1,017.1 1,025.3 1,024.0 1,064.5 1,045.3 1,057.4 1,073.5 1,081.7 1,082.3 511.7 97.3 217.7 196.8 175.1 154.0 168.8 640.7 2.9 3.4 –0.5 –708.0 1,643.0 1,152.9 490.1 2,351.0 1,979.4 371.6 497.6 96.6 210.5 190.5 168.1 162.9 163.2 687.5 –1.6 5.5 –7.0 –714.2 1,549.9 1,084.0 465.9 2,264.0 1,902.7 361.4 507.7 96.6 216.1 195.0 176.0 153.3 167.5 664.8 5.1 4.0 1.1 –714.2 1,598.7 1,115.2 483.5 2,312.9 1,947.2 365.7 512.6 95.7 218.5 198.4 180.6 153.3 170.5 627.3 35.4 3.8 31.6 –694.7 1,685.7 1,191.3 494.4 2,380.4 2,007.3 373.2 529.0 100.2 225.5 203.4 175.7 146.6 173.9 582.9 –27.4 0.3 –27.7 –708.9 1,737.7 1,221.1 516.5 2,446.6 2,060.5 386.0 13,553.5 14,266.1 14,267.7 13,551.9 752.2 689.0 13,615.1 13,763.6 14,483.0 14,477.9 13,768.8 814.2 743.5 13,839.4 13,935.0 14,665.1 14,629.7 13,970.5 855.6 754.4 14,071.6 14,101.6 14,783.1 14,810.5 14,074.2 848.1 700.2 14,222.1 247.4 233.7 54.9 9.6 42.7 8.3 55.1 25.2 18.0 –2.4 20.4 129.3 27.3 13.1 8.6 3.4 9.0 35.7 12.7 31.6 –94.0 –55.2 61.6 34.8 13.9 2007 2008 IV Ir 16.8 46.9 6.2 3.1 6.7 –2.3 7.4 11.4 –3.8 –0.7 –0.3 32.9 9.4 6.3 4.6 1.1 2.1 14.1 –0.1 1.0 –72.2 –18.5 20.5 9.2 8.2 27.9 23.8 –19.0 –15.7 1.5 –2.0 –1.0 4.3 2.1 –3.1 –1.6 36.5 6.4 3.6 4.6 –2.0 1.6 17.0 –3.3 10.8 –31.6 –32.2 1.9 1.0 0.6 537.0 645.5 623.3 638.5 648.7 671.3 684.6 49.6 22.6 13.3 100.8 .............. .............. .............. .............. .............. .............. .............. .............. .............. 231.8 227.0 219.9 225.6 228.0 234.5 240.7 14.0 6.5 6.2 204.3 215.3 209.2 213.4 216.8 221.9 222.0 10.5 5.1 0.1 178.8 151.7 147.3 152.9 156.0 150.6 151.9 2.1 –5.4 1.3 140.1 136.7 144.8 135.3 136.3 130.3 125.4 –18.5 –6.0 –4.9 168.1 148.9 144.8 148.0 150.2 152.7 147.6 –7.3 2.5 –5.1 540.2 472.8 506.3 490.7 463.3 430.9 401.6 –96.7 –32.4 –29.3 –30.4 4.5 0.1 5.8 30.6 –18.3 –19.6 –35.8 –48.9 –1.3 –3.8 3.7 5.0 3.6 4.1 2.2 –1.0 4.6 –1.9 –3.2 –26.6 0.0 –5.8 1.3 26.0 –21.7 –18.9 0.0 –47.7 2.8 –717.0 –555.6 –612.1 –573.9 –533.1 –503.2 –480.2 68.9 29.9 23.0 1,798.9 1,409.9 1,354.7 1,379.5 1,441.2 1,464.1 1,483.7 105.8 22.9 19.6 1,264.7 1,000.8 957.6 973.1 1,031.4 1,041.2 1,052.5 73.4 9.8 11.3 534.2 409.4 397.2 406.4 410.4 423.4 431.5 32.3 13.0 8.1 2,515.9 1,965.4 1,966.8 1,953.4 1,974.3 1,967.3 1,963.9 36.8 –7.0 –3.4 2,117.0 1,673.5 1,675.6 1,663.4 1,683.2 1,671.9 1,663.9 26.6 –11.3 –8.0 398.9 293.8 293.1 291.9 293.1 297.1 301.4 10.0 4.0 4.3 2,689.8 2,608.3 2,670.0 2,716.5 2,764.4 2,825.5 976.0 946.6 969.5 990.3 997.7 1,023.3 660.1 634.8 654.5 673.5 677.7 696.8 578.9 555.7 573.8 589.6 596.4 613.9 81.2 79.1 80.7 83.9 81.3 82.9 315.9 311.7 315.0 316.8 320.0 326.5 277.2 274.0 276.0 278.1 280.5 286.8 38.7 37.7 39.1 38.6 39.5 39.7 1,713.8 1,661.7 1,700.5 1,726.2 1,766.7 1,802.2 1,365.9 1,326.7 1,355.9 1,374.3 1,406.4 1,442.8 347.9 335.0 344.5 351.9 360.3 359.4 .............. .............. .............. .............. .............. .............. 13,838.4 14,549.3 14,546.4 13,841.3 817.5 721.8 13,937.1 2007 r 14,231.5 14,918.1 14,948.4 14,201.1 784.1 663.3 14,321.9 2,021.6 755.0 505.1 429.3 77.3 249.6 213.0 36.8 1,266.4 1,009.2 257.0 –145.8 1,994.7 740.2 491.6 417.4 75.6 248.4 212.5 35.9 1,254.2 1,002.5 251.5 –130.7 2,014.8 751.0 501.7 426.2 77.0 248.9 212.0 37.2 1,263.5 1,007.4 256.0 –136.3 2,033.6 764.0 513.9 436.0 79.6 249.6 213.1 36.8 1,269.6 1,010.7 258.8 –149.4 2,043.4 765.0 513.2 437.4 76.9 251.4 214.2 37.4 1,278.3 1,016.3 261.9 –165.9 11,561.5 12,117.8 12,112.2 11,566.8 685.6 603.8 11,647.6 11,411.6 12,018.7 12,017.4 11,412.6 638.2 583.2 11,466.7 11,512.8 12,088.9 12,081.4 11,520.1 684.3 623.5 11,580.0 11,626.4 12,188.3 12,155.6 11,658.9 716.3 629.6 11,744.6 11,695.2 12,175.5 12,194.6 11,675.7 703.4 579.1 11,799.1 Net domestic product.............................................. 12,154.8 11,881.0 12,085.4 12,279.6 12,373.0 12,490.2 10,080.0 2,053.9 40.2 9.8 10.5 773.2 12.7 1.0 8.2 520.3 13.6 –0.7 7.1 443.6 12.7 1.4 6.2 77.8 0.7 –2.7 0.9 252.4 –1.1 1.8 1.0 215.1 0.4 1.1 0.9 37.6 –1.7 0.6 0.2 1,280.9 27.4 8.7 2.6 1,022.0 18.3 5.6 5.7 258.7 9.0 3.1 –3.2 –173.0 .............. .............. .............. 11,722.5 12,180.4 12,199.0 11,703.6 644.9 543.3 11,804.3 285.6 180.7 218.8 247.4 90.6 60.2 277.5 68.8 –12.8 39.0 16.8 –12.9 –50.5 54.5 27.3 4.9 4.4 27.9 –58.5 –35.8 5.2 9,937.7 10,037.2 10,167.8 10,177.4 10,198.3 207.2 9.6 20.9 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 impor tance 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. Table 4. Price Indexes for Gross Domestic Product and Related Measures: Percent Change From Preceding Period Seasonally adjusted at annual rates 2005 2006 2007 2004 II III 2005 IV I II 2006 III IV I II 2007 III IV I II 2008 III IV Ir Gross domestic product (GDP) ............................... 3.2 3.2 2.7 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 2.7 Personal consumption expenditures ................................. 2.9 2.8 2.5 3.8 2.0 3.0 2.2 3.4 4.3 2.8 1.7 4.3 2.6 –0.9 3.5 4.3 1.8 3.9 3.6 Durable goods .................................................................... –0.7 –1.3 –1.8 0.3 –2.5 0.2 0.1 –0.4 –2.8 –1.1 –1.0 –0.7 –1.3 –2.7 –1.9 –1.4 –1.8 –1.7 –0.2 Nondurable goods .............................................................. 3.7 3.1 3.0 6.2 1.4 4.7 0.3 5.0 9.5 0.8 0.3 8.6 2.8 –7.9 5.0 10.0 1.1 7.1 6.6 Services.............................................................................. 3.4 3.4 3.2 3.4 3.1 2.8 3.6 3.4 3.3 4.6 3.0 3.2 3.2 3.0 3.8 2.6 2.8 3.5 2.9 Gross private domestic investment.................................... 4.2 3.5 1.2 4.7 3.9 3.9 5.2 2.8 4.0 5.8 4.0 2.5 1.6 2.2 2.0 –0.4 –0.3 0.8 –1.1 Fixed investment................................................................. 4.3 3.5 1.1 4.7 3.9 3.9 5.3 2.9 4.2 6.0 3.9 2.4 1.5 2.0 1.9 –0.3 –0.5 0.7 –0.5 Nonresidential................................................................. 2.9 3.1 1.2 2.4 1.3 2.5 4.5 2.4 1.6 4.6 3.9 2.8 1.9 2.0 1.9 0.0 –0.6 1.1 0.1 Structures.................................................................... 11.7 11.7 3.3 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 0.5 3.2 1.8 Equipment and software ............................................. –0.1 0.0 0.4 0.7 –1.7 –0.6 1.8 0.3 –2.5 0.2 0.6 –0.2 0.4 0.8 1.0 0.5 –1.1 0.1 –0.7 Residential ...................................................................... 6.7 4.4 0.9 8.8 8.5 6.2 6.6 3.6 8.7 8.5 3.9 1.8 0.8 2.1 2.0 –0.8 –0.3 –0.4 –2.3 Change in private inventories ............................................. ......... .......... .......... .......... .......... .......... .......... ......... .......... .......... .......... .......... .......... .......... ......... .......... .......... .......... .......... Net exports of goods and services .................................... ......... .......... .......... .......... .......... .......... .......... ......... .......... .......... .......... .......... .......... .......... ......... .......... .......... .......... .......... Exports ............................................................................... 3.6 3.4 3.5 4.8 1.9 4.2 4.6 3.6 2.5 3.0 2.7 6.0 4.6 –0.8 3.6 5.3 3.8 6.0 8.9 Goods ............................................................................. 3.1 3.3 3.6 5.2 1.0 3.6 4.3 3.0 1.3 2.3 3.0 6.3 5.2 0.1 3.5 5.1 3.2 6.3 10.2 Services.......................................................................... 4.9 3.7 3.3 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 6.0 Imports ............................................................................... 6.3 4.0 3.5 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 12.6 Goods ............................................................................. 6.5 4.2 3.6 7.9 5.0 7.0 2.0 10.1 10.9 4.9 –1.9 10.4 5.3 –10.1 0.7 13.0 7.7 14.1 13.6 Services.......................................................................... 5.6 3.1 2.8 4.7 6.7 6.0 3.5 7.7 7.5 1.3 0.5 8.4 1.4 –5.3 2.3 6.7 6.5 8.6 7.6 Government consumption expenditures and gross investment......................................................................... 5.8 4.9 4.5 5.0 4.8 5.7 7.5 4.6 6.4 5.0 5.1 5.7 3.0 2.1 6.4 5.5 3.2 5.2 6.9 Federal ............................................................................... 4.8 3.9 2.9 5.5 2.5 2.6 11.5 2.3 3.4 0.8 9.1 4.0 1.3 0.5 5.3 3.8 1.6 2.5 6.1 National defense............................................................. 5.3 4.1 2.9 5.6 2.9 3.1 12.2 2.5 3.5 1.3 9.3 4.2 1.6 –0.1 5.0 4.1 1.9 3.0 5.8 Nondefense .................................................................... 4.0 3.5 2.9 5.2 1.4 1.7 10.1 1.8 3.2 –0.2 8.9 3.5 0.7 1.7 5.9 3.3 1.1 1.3 6.6 State and local.................................................................... 6.4 5.4 5.4 4.7 6.2 7.6 5.2 6.1 8.1 7.6 2.7 6.7 4.0 3.1 7.0 6.5 4.2 6.8 7.4 Addenda: Final sales of domestic product .......................................... 3.2 3.2 2.6 3.8 2.3 3.2 3.9 2.6 3.5 3.5 3.4 3.5 2.3 1.7 4.2 2.7 1.0 2.4 2.8 Gross domestic purchases ................................................. 3.7 3.3 2.7 4.2 2.8 3.6 3.6 3.5 4.6 3.7 2.7 4.2 2.5 0.1 3.8 3.8 1.8 3.7 3.6 Final sales to domestic purchasers .................................... 3.7 3.3 2.7 4.2 2.7 3.6 3.6 3.5 4.6 3.7 2.7 4.2 2.5 0.1 3.8 3.8 1.7 3.7 3.6 Gross national product (GNP) ............................................ 3.2 3.1 2.7 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 2.5 2.7 Implicit price deflators: GDP ................................................................................ 3.2 3.2 2.7 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 2.7 Gross domestic purchases ............................................. 3.6 3.3 2.7 4.2 2.7 3.7 3.6 3.6 4.6 3.7 2.7 4.2 2.5 0.1 3.8 3.8 1.7 3.7 3.5 GNP ................................................................................ 3.2 3.2 2.7 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 2.7 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 2007 I II 2008 III IV Ir Gross domestic product .................................................................... 112.086 115.304 117.825 116.254 117.349 118.763 118.934 119.218 Personal consumption expenditures............................................................... 115.791 119.359 122.828 121.906 122.331 123.190 123.885 124.238 Durable goods.................................................................................................. 131.748 136.735 143.096 141.680 142.283 143.852 144.572 142.371 Nondurable goods............................................................................................ 115.828 120.051 122.884 122.563 122.419 123.090 123.466 123.415 Services ........................................................................................................... 112.687 115.696 118.987 117.865 118.527 119.360 120.198 121.127 Gross private domestic investment ................................................................. 107.709 110.607 105.187 104.690 105.875 107.172 103.011 101.191 Fixed investment .............................................................................................. 109.080 111.657 108.369 108.113 108.956 108.756 107.652 105.739 Nonresidential .............................................................................................. 99.490 106.062 111.061 107.277 110.109 112.597 114.261 114.418 Structures ................................................................................................. 79.127 85.770 96.871 90.241 95.639 99.330 102.274 102.590 Equipment and software........................................................................... 107.935 114.332 115.842 113.753 115.075 116.821 117.720 117.784 Residential ................................................................................................... 133.608 127.433 105.795 113.301 109.791 103.665 96.422 89.859 Change in private inventories........................................................................... .................. .................. .................. .................. .................. .................. .................. .................. Exports of goods and services ........................................................................ 109.775 118.957 128.603 123.568 125.833 131.458 133.555 135.336 Imports of goods and services ........................................................................ 123.425 130.683 133.181 133.272 132.363 133.780 133.309 133.075 Government consumption expenditures and gross investment................... 113.050 115.092 117.427 115.865 117.028 118.121 118.693 119.303 Federal ............................................................................................................. 125.524 128.255 130.454 127.886 129.756 132.000 132.175 133.588 State and local ................................................................................................. 106.721 108.418 110.816 109.748 110.564 111.096 111.857 112.082 Addenda: Final sales of domestic product ....................................................................... 112.360 115.526 118.452 116.916 117.953 119.117 119.822 120.102 Gross domestic purchases .............................................................................. 113.894 117.071 118.844 117.871 118.560 119.535 119.409 119.457 Final sales to domestic purchasers.................................................................. 114.166 117.292 119.450 118.515 119.146 119.878 120.263 120.306 Gross national product..................................................................................... 112.265 115.363 118.179 116.344 117.493 119.163 119.716 119.769 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 2007 I II 2008 III IV Ir Gross domestic product .................................................................... 113.005 116.568 119.668 118.750 119.527 119.837 120.560 121.363 Personal consumption expenditures (PCE) .................................................... 111.588 114.675 117.591 116.129 117.345 117.873 119.019 120.079 Durable goods.................................................................................................. 90.018 88.857 87.276 87.799 87.488 87.091 86.726 86.681 Nondurable goods............................................................................................ 111.561 114.989 118.398 115.620 118.413 118.751 120.810 122.751 Services ........................................................................................................... 116.726 120.725 124.556 123.252 124.055 124.921 125.996 126.892 Gross private domestic investment ................................................................. 111.155 115.090 116.458 116.532 116.426 116.325 116.549 116.224 Fixed investment .............................................................................................. 111.404 115.352 116.637 116.718 116.636 116.498 116.696 116.542 Nonresidential .............................................................................................. 103.778 106.961 108.293 108.301 108.293 108.140 108.440 108.470 Structures ................................................................................................. 135.013 150.806 155.709 155.637 155.199 155.392 156.609 157.319 Equipment and software........................................................................... 94.527 94.485 94.857 94.892 95.002 94.751 94.783 94.613 Residential ................................................................................................... 128.653 134.288 135.450 135.736 135.459 135.367 135.238 134.470 Change in private inventories........................................................................... .................. .................. .................. ................. .................. .................. .................. ................. Exports of goods and services ........................................................................ 108.803 112.537 116.510 114.433 115.912 116.992 118.704 121.271 Imports of goods and services ........................................................................ 111.117 115.610 119.613 115.114 118.408 120.572 124.360 128.110 Government consumption expenditures and gross investment................... 121.435 127.334 133.042 130.765 132.527 133.588 135.286 137.573 Federal ............................................................................................................. 120.914 125.622 129.256 127.886 129.098 129.622 130.416 132.356 State and local ................................................................................................. 121.758 128.370 135.316 132.499 134.586 135.969 138.209 140.706 Addenda: PCE excluding food and energy....................................................................... 109.670 112.130 114.483 113.730 114.116 114.682 115.403 116.053 Market-based PCE 1 ........................................................................................ 110.307 113.168 115.945 114.472 115.784 116.186 117.339 118.433 1 Market-based PCE excluding food and energy ............................................. 107.667 109.717 111.783 111.161 111.498 111.917 112.557 113.166 Final sales of domestic product ....................................................................... 113.040 116.603 119.692 118.773 119.555 119.860 120.579 121.406 Gross domestic purchases .............................................................................. 113.225 116.920 120.068 118.702 119.809 120.330 121.432 122.497 Final sales to domestic purchasers.................................................................. 113.261 116.956 120.093 118.727 119.838 120.355 121.452 122.540 Gross national product..................................................................................... 112.999 116.558 119.659 118.740 119.518 119.824 120.552 121.351 Implicit price deflators: Gross domestic product ............................................................................... 113.000 116.567 119.664 118.745 119.519 119.826 120.542 121.339 Final sales of domestic product.................................................................... 113.040 116.603 119.694 118.770 119.551 119.857 120.576 121.403 Gross domestic purchases........................................................................... 113.221 116.919 120.065 118.700 119.804 120.321 121.417 122.476 Final sales to domestic purchasers.............................................................. 113.261 116.956 120.097 118.725 119.837 120.354 121.451 122.539 Gross national product ................................................................................. 112.994 116.558 119.656 118.736 119.512 119.814 120.535 121.328 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 a re included in the addenda to table 8 and 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 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 –0.7 1.8 6.4 5.6 7.3 5.1 –0.4 6.8 –2.3 –17.1 –4.1 1.3 0.5 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 0.8 0.4 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 0.0 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 –0.3 2.1 0.0 11.5 2.3 5.2 3.5 Government consumption expenditures and gross investment ........ 0.5 –0.9 0.0 0.5 1.0 1.9 1.9 3.9 2.1 3.4 4.4 2.5 1.4 0.7 1.8 2.0 Federal .................................................................................................. –1.7 –4.2 –3.7 –2.7 –1.2 –1.0 –1.1 2.2 0.9 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 –0.5 3.9 7.4 8.7 5.8 1.5 1.9 2.8 Nondefense ....................................................................................... 6.9 –0.7 –1.2 –0.4 –0.7 2.6 0.7 2.8 3.5 3.9 6.3 3.4 1.1 1.3 2.8 –0.4 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 0.2 –0.2 0.3 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 0.9 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 0.8 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 0.6 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 0.9 1.7 2.5 2.1 1.4 2.0 2.6 2.9 2.8 2.5 Table 8. Real Gross Domestic Product: Percent Change From Quarter One Year Ago 2004 II III 2005 IV I II 2006 III IV I II 2007 III IV I II 2008 III IV Ir Gross domestic product (GDP) .................................................. 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 2.5 Personal consumption expenditures (PCE).......................................... 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 1.9 Durable goods ....................................................................................... 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 0.5 Nondurable goods ................................................................................. 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 0.7 Services................................................................................................. 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 2.8 Gross private domestic investment....................................................... 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 –3.3 Fixed investment.................................................................................... 7.8 6.8 7.2 8.3 7.1 6.8 5.5 6.5 4.0 0.8 –1.6 –4.5 –3.3 –2.3 –1.5 –2.2 Nonresidential.................................................................................... 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 6.7 Structures....................................................................................... 0.0 1.1 2.3 2.9 1.0 –1.6 –0.3 2.7 7.1 11.6 12.3 10.2 12.4 13.8 15.1 13.7 Equipment and software ................................................................ 6.7 7.3 9.4 11.4 10.1 9.9 7.1 9.4 7.4 4.6 2.5 –0.5 0.7 1.5 3.6 3.5 Residential ......................................................................................... 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 –20.7 Change in private inventories ................................................................ ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ............ ........... ........... ........... Net exports of goods and services ....................................................... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ............ ........... ........... ........... Exports .................................................................................................. 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 9.5 Goods ................................................................................................ 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 9.9 Services............................................................................................. 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 8.6 Imports .................................................................................................. 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 –0.1 Goods ................................................................................................ 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 0.8 –0.7 Services............................................................................................. 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 2.8 Government consumption expenditures and gross investment ........ 1.3 1.3 0.7 0.6 0.6 0.9 0.9 1.8 1.8 1.2 2.5 1.2 1.9 2.7 2.3 3.0 Federal .................................................................................................. 3.0 4.4 2.4 1.6 1.2 1.8 1.3 2.7 2.1 0.3 3.7 0.0 1.8 3.4 1.7 4.5 National defense................................................................................ 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 5.8 Nondefense ....................................................................................... 2.8 –0.9 2.3 1.5 –0.1 2.1 1.9 5.0 3.4 3.4 –0.7 –2.5 0.0 –1.2 2.1 1.6 State and local....................................................................................... 0.3 –0.5 –0.4 0.0 0.2 0.5 0.7 1.3 1.5 1.7 1.8 1.9 2.0 2.3 2.7 2.1 Addenda: Final sales of domestic product ............................................................. 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 2.7 Gross domestic purchases.................................................................... 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 1.3 Final sales to domestic purchasers ....................................................... 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 1.5 Gross national product .......................................................................... 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 2.9 Real disposable personal income.......................................................... 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 2.4 1.4 Price indexes: Gross domestic purchases ................................................................ 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 3.2 Gross domestic purchases excluding food and energy ..................... 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 2.0 GDP ................................................................................................... 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 2.2 GDP excluding food and energy ........................................................ 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 1.9 PCE ................................................................................................... 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 3.4 PCE excluding food and energy......................................................... 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 2.0 1 Market-based PCE .......................................................................... 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 3.5 Market-based PCE excluding food and energy 1 ............................... 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 1.8 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 Gross domestic product ................................................................................................... Plus: Income receipts from the rest of the world.................................................................. Less: Income payments to the rest of the world .................................................................. Equals: Gross national product ....................................................................................... Less: Consumption of fixed capital ...................................................................................... Less: Statistical discrepancy................................................................................................ 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 ..................................................................... Addendum: Gross domestic income ................................................................................................... 2006 2007 2007 2008 I II III IV Ir 12,433.9 544.1 475.6 12,502.4 1,609.5 5.4 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 13,194.7 691.4 633.4 13,252.7 1,615.2 –18.1 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 13,841.3 817.5 721.8 13,937.1 1,686.6 22.4 12,228.0 7,881.1 6,388.6 1,492.5 1,042.6 65.4 1,595.2 602.6 961.4 94.2 –14.5 13,551.9 752.2 689.0 13,615.1 1,670.9 –66.3 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 13,768.8 814.2 743.5 13,839.4 1,683.4 –40.8 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 13,970.5 855.6 754.4 14,071.6 1,690.9 84.8 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 14,074.2 848.1 700.2 14,222.1 1,701.1 112.0 12,408.9 8,025.0 6,508.4 1,516.6 1,055.9 77.8 1,569.0 619.0 977.3 97.9 –13.1 14,201.1 784.1 663.3 14,321.9 1,710.8 129.8 12,481.3 8,110.7 6,570.2 1,540.5 1,055.9 80.9 1,563.8 601.6 981.9 100.9 –14.4 12,428.6 13,212.8 13,818.9 13,618.2 13,809.5 13,885.7 13,962.1 14,071.2 r Revised Table 10. Personal Income and Its Disposition [Billions of dollars] Seasonally adjusted at annual rates 2005 1 2006 2007 2007 2008 I II III IV Ir Personal income ............................................................................................................. 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 .................................................................................... Less: Contributions for government social insurance ...................................................... Less: Personal current taxes ............................................................................................... Equals: Disposable personal income .............................................................................. Less: Personal outlays......................................................................................................... Equals: Personal saving ................................................................................................... 10,301.1 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 1,520.7 874.8 1,209.1 9,092.0 9,047.4 44.6 10,983.4 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 1,612.5 927.6 1,354.3 9,629.1 9,590.3 38.8 11,665.6 7,858.6 6,366.1 1,492.5 1,042.6 36.2 1,006.4 65.4 1,947.2 1,154.7 792.5 1,731.7 979.9 1,483.7 10,181.9 10,134.1 47.8 11,469.2 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 1,710.7 969.8 1,454.7 10,014.5 9,917.5 97.0 11,577.3 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 1,717.1 972.2 1,477.6 10,099.7 10,069.2 30.5 11,735.0 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 1,742.3 983.2 1,489.8 10,245.2 10,200.9 44.4 11,880.9 7,985.0 6,468.4 1,516.6 1,055.9 43.8 1,012.1 77.8 1,999.8 1,173.2 826.6 1,756.5 994.1 1,512.7 10,368.2 10,348.9 19.3 12,012.1 8,100.7 6,560.2 1,540.5 1,055.9 37.3 1,018.5 80.9 2,004.4 1,161.1 843.3 1,786.2 1,015.9 1,514.8 10,497.4 10,453.6 43.8 Personal saving as a percentage of disposable personal income ................................... Addendum: Disposable personal income, billions of chained (2000) dollars 2 .................................... 0.5 0.4 0.5 1.0 0.3 0.4 0.2 0.4 8,147.9 8,396.9 8,658.6 8,623.9 8,607.1 8,692.1 8,711.7 8,742.4 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. 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 2007 Corporate profits with inventory valuation and capital consumption adjustments .......................... Less: Taxes on corporate income................................... Equals: Profits after tax with inventory valuation and capital consumption adjustments ................... Net dividends.............................................................. Undistributed profits with inventory valuation and capital consumption adjustments............................ Cash flow: Net cash flow with inventory valuation and capital consumption adjustments ................................... Undistributed profits with inventory valuation and capital consumption adjustments........................ Consumption of fixed capital................................... Less: Inventory valuation adjustment ......................... Equals: Net cash flow .............................................. 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 ................................ 2007 2008 I II III IV Quarter one year ago Quarterly rates I 2007 r II III 2008 IV I r 2008 r I 1,372.8 1,553.7 1,595.2 1,547.7 1,642.4 1,621.9 1,569.0 1,563.8 13.2 2.7 6.1 –1.2 –3.3 –0.3 1.0 392.9 453.9 466.6 452.5 490.1 469.4 454.4 421.8 15.5 2.8 8.3 –4.2 –3.2 –7.2 –6.8 979.9 601.4 1,099.8 698.9 1,128.6 795.2 1,095.2 759.4 1,152.2 784.2 1,152.5 807.7 1,114.6 829.4 1,141.9 846.2 12.2 16.2 2.6 13.8 5.2 3.3 0.0 3.0 –3.3 2.7 2.5 2.0 4.3 11.4 378.6 400.9 333.5 335.8 368.0 344.7 285.2 295.8 5.9 –16.8 9.6 –6.3 –17.3 3.7 –11.9 1,235.4 1,290.9 1,255.1 1,251.5 1,288.9 1,267.8 1,212.1 1,227.2 4.5 –2.8 3.0 –1.6 –4.4 1.3 –1.9 378.6 856.8 –36.2 1,271.6 400.9 890.0 –36.3 1,327.2 333.5 921.6 –46.2 1,301.2 335.8 915.7 –40.2 1,291.7 368.0 920.8 –54.7 1,343.6 344.7 923.1 –20.3 1,288.1 285.2 926.9 –69.4 1,281.5 295.8 5.9 –16.8 9.6 –6.3 –17.3 3.7 –11.9 931.5 3.9 3.5 0.6 0.2 0.4 0.5 1.7 –98.1 .............. ............. .............. ............. .............. .............. ............. 1,325.3 4.4 –2.0 4.0 –4.1 –0.5 3.4 2.6 1,579.6 1,805.8 1,876.7 1,815.8 1,931.5 1,879.7 1,879.9 1,735.7 1,186.7 –36.2 –170.6 1,351.9 –36.3 –215.8 1,410.1 –46.2 –235.3 1,363.3 –40.2 –227.9 1,441.4 –54.7 –234.4 1,410.2 –20.3 –237.4 1,425.5 –69.4 –241.5 1,313.8 13.9 4.3 5.7 –2.2 1.1 –7.8 –3.6 –98.1 .............. ............. .............. ............. .............. .............. ............. –73.8 .............. ............. .............. ............. .............. .............. ............. 14.3 3.9 6.4 –2.7 0.0 –7.7 –4.4 r Revised 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 2007 2005 2006 2007 2007 I Corporate profits with inventory valuation and capital consumption adjustments................... Domestic industries..................................................... Financial ..................................................................... Nonfinancial................................................................ Rest of the world .......................................................... Receipts from the rest of the world............................. Less: Payments to the rest of the world...................... Corporate profits with inventory valuation adjustment......................................................... Domestic industries..................................................... Financial ..................................................................... Federal Reserve banks........................................... Other financial......................................................... 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........................................ Nondurable goods............................................... Food and beverage and tobacco products ...... Petroleum and coal products........................... Chemical products .......................................... Other nondurable goods.................................. Wholesale trade...................................................... Retail trade ............................................................. Transportation and warehousing............................. Information.............................................................. Other nonfinancial................................................... Rest of the world .......................................................... II 2008 III IV I 2006 2008 2007 r II III IV I r 1,372.8 1,154.6 405.5 749.1 218.2 358.7 140.6 1,553.7 1,296.4 482.2 814.3 257.3 419.8 162.5 1,595.2 1,257.7 473.4 784.3 337.6 491.0 153.4 1,547.7 1,249.8 468.7 781.1 297.9 448.7 150.8 1,642.4 1,327.8 521.4 806.4 314.6 482.6 168.0 1,621.9 1,280.9 488.9 792.0 341.0 510.2 169.1 1,569.0 1,172.2 414.5 757.7 396.8 522.5 125.7 1,563.8 1,189.8 428.7 761.1 374.0 526.2 152.2 180.9 141.8 76.7 65.2 39.1 61.1 21.9 41.5 –38.7 –8.8 –30.0 80.3 71.2 –9.1 94.7 78.0 52.7 25.3 16.7 33.9 17.2 –20.5 –46.9 –32.5 –14.4 26.4 27.6 1.1 –52.9 –108.7 –74.4 –34.3 55.8 12.3 –43.4 –5.2 17.6 14.2 3.4 –22.8 3.7 26.5 1,543.4 1,325.2 423.6 26.6 397.1 901.6 28.4 251.2 85.1 17.3 16.0 10.1 1,769.5 1,512.2 505.3 33.8 471.4 1,006.9 35.7 293.4 95.9 20.3 19.3 7.7 1,830.5 1,493.0 498.5 38.4 460.1 994.5 44.4 305.7 121.9 25.2 21.8 8.0 1,775.6 1,477.7 493.0 38.5 454.5 984.7 36.4 298.9 113.0 23.3 21.8 9.0 1,876.8 1,562.1 546.4 39.2 507.2 1,015.7 41.2 347.0 117.2 22.2 22.5 7.7 1,859.4 1,518.3 514.2 38.4 475.8 1,004.1 46.4 296.8 128.5 26.5 22.3 8.5 1,810.5 1,413.7 440.3 37.6 402.7 973.4 53.7 280.3 129.2 28.8 20.4 7.0 1,637.6 1,263.6 435.9 36.8 399.1 827.7 36.1 224.3 78.2 24.5 16.9 3.2 226.1 187.0 81.7 7.2 74.3 105.3 7.3 42.2 10.8 3.0 3.3 –2.4 61.0 –19.2 –6.8 4.6 –11.3 –12.4 8.7 12.3 26.0 4.9 2.5 0.3 101.2 84.4 53.4 0.7 52.7 31.0 4.8 48.1 4.2 –1.1 0.7 –1.3 –17.4 –43.8 –32.2 –0.8 –31.4 –11.6 5.2 –50.2 11.3 4.3 –0.2 0.8 –48.9 –104.6 –73.9 –0.8 –73.1 –30.7 7.3 –16.5 0.7 2.3 –1.9 –1.5 –172.9 –150.1 –4.4 –0.8 –3.6 –145.7 –17.6 –56.0 –51.0 –4.3 –3.5 –3.8 –3.7 0.1 45.3 166.0 27.8 89.8 29.7 18.7 95.2 114.4 28.2 74.8 309.5 –1.9 –1.1 51.7 197.5 29.2 110.4 37.6 20.3 97.0 124.5 41.9 85.4 329.0 2.0 9.4 55.5 183.8 33.4 86.5 43.9 20.0 98.7 137.5 47.1 103.4 257.5 1.3 4.6 52.9 185.9 30.1 94.9 41.0 20.0 97.8 134.3 39.1 109.5 268.7 0.7 12.3 51.8 229.8 35.4 136.5 41.8 16.1 104.9 134.4 45.8 92.9 249.5 2.4 12.1 56.7 168.3 34.3 70.6 43.4 20.0 109.8 140.2 55.4 100.8 254.7 3.6 8.7 60.7 151.1 33.7 44.0 49.2 24.1 82.2 141.3 48.3 110.4 257.2 –1.5 –3.6 38.8 146.1 29.4 63.2 38.4 15.1 57.0 130.6 28.8 115.3 235.7 1.8 –1.2 6.4 31.5 1.4 20.6 7.9 1.6 1.8 10.1 13.7 10.6 19.5 3.9 10.5 3.8 –13.7 4.2 –23.9 6.3 –0.3 1.7 13.0 5.2 18.0 –71.5 –0.6 7.7 –1.1 43.9 5.3 41.6 0.8 –3.9 7.1 0.1 6.7 –16.6 –19.2 1.7 –0.2 4.9 –61.5 –1.1 –65.9 1.6 3.9 4.9 5.8 9.6 7.9 5.2 1.2 –3.4 4.0 –17.2 –0.6 –26.6 5.8 4.1 –27.6 1.1 –7.1 9.6 2.5 –5.1 –12.3 –21.9 –5.0 –4.3 19.2 –10.8 –9.0 –25.2 –10.7 –19.5 4.9 –21.5 218.2 257.3 337.6 297.9 314.6 341.0 396.8 374.0 39.1 80.3 16.7 26.4 55.8 –22.8 r Revised 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 2007 I 2008 II III IV I r Billions of dollars Gross value added of nonfinancial corporate business......................................... Consumption of fixed capital................................................................................................ Net value added ................................................................................................................. Compensation of employees............................................................................................ Wage and salary accruals............................................................................................ Supplements to wages and salaries ............................................................................ Taxes of 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 ...................................................................................................... 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...................................................................................... 6,319.4 742.3 5,577.1 4,078.5 3,334.8 743.6 558.7 940.0 132.5 58.3 749.1 263.4 485.7 199.2 6,689.4 772.8 5,916.6 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 6,949.1 800.7 6,148.3 4,556.2 3,749.0 807.2 610.5 981.6 137.7 59.7 784.3 311.3 473.0 490.2 6,865.0 795.7 6,069.3 4,494.1 3,695.5 798.6 599.7 975.6 136.0 58.5 781.1 298.6 482.5 483.7 6,938.0 800.1 6,138.0 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 6,973.5 802.0 6,171.6 4,568.5 3,758.5 810.1 614.2 988.8 136.9 60.0 792.0 310.0 482.0 478.0 7,019.7 805.2 6,214.5 4,633.8 3,815.5 818.3 620.3 960.3 141.5 61.1 757.7 315.1 442.6 508.0 7,080.3 809.1 6,271.1 4,684.2 3,853.4 830.9 623.6 963.3 139.8 62.4 761.1 284.1 477.0 470.1 286.5 77.4 –17.2 –1.2 –6.4 4.0 –65.4 6.9 937.8 674.4 –36.2 –152.5 1,043.2 755.0 –36.3 –192.7 1,040.6 729.3 –46.2 –210.2 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 –215.6 925.7 641.6 –98.1 –66.5 6,211.3 711.7 5,499.6 6,256.5 714.6 5,541.9 Billions of chained (2000) dollars 1 Gross value added of nonfinancial corporate business ...................................... Consumption of fixed capital 2 ............................................................................................. Net value added 3 ................................................................................................................ 5,836.9 682.4 5,154.5 6,011.3 686.9 5,324.5 6,145.2 706.7 5,438.5 6,075.5 701.7 5,373.8 6,119.2 705.1 5,414.1 6,174.9 708.5 5,466.4 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 ...... Compensation of employees (unit labor cost).................................................................. Unit nonlabor cost ............................................................................................................ Consumption of fixed capital ........................................................................................ Taxes on production and imports less subsidies plus business current transfer payments.................................................................................................................. Net interest and miscellaneous payments.................................................................... 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........... 1.083 0.699 0.256 0.127 1.113 0.718 0.260 0.129 1.131 0.741 0.261 0.130 1.130 0.740 0.261 0.131 1.134 0.740 0.262 0.131 1.129 0.740 0.261 0.130 1.130 0.746 0.263 0.130 1.132 0.749 0.261 0.129 0.106 0.023 0.109 0.022 0.109 0.022 0.108 0.022 0.109 0.022 0.109 0.022 0.110 0.023 0.110 0.022 0.128 0.045 0.083 0.135 0.048 0.088 0.128 0.051 0.077 0.129 0.049 0.079 0.132 0.053 0.079 0.128 0.050 0.078 0.122 0.051 0.071 0.122 0.045 0.076 r Revised 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 chain-type 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 2004 II Gross domestic product (GDP) and related aggregates: GDP.................................................................................. Goods............................................................................... Services............................................................................ Structures ......................................................................... Motor vehicle output ......................................................... GDP excluding motor vehicle output ................................ Final sales of computers 1 ................................................ GDP excluding final sales of computers........................... Farm gross value added 2 ................................................ Nonfarm business gross value added 3 ............................ Price indexes: GDP.................................................................................. GDP excluding food and energy ....................................... GDP excluding final sales of computers........................... Gross domestic purchases ............................................... Gross domestic purchases excluding food and energy .... Gross domestic purchases excluding final sales of computers to domestic purchasers............................... Personal consumption expenditures (PCE) ...................... PCE excluding food and energy ....................................... Market-based PCE 4......................................................... Market-based PCE excluding food and energy 4 .............. 2.2 3.5 3.3 3.4 2.9 2.2 –4.7 11.5 –2.1 –6.1 2.3 3.8 20.3 –6.6 2.1 3.6 –0.3 –30.8 2.3 5.0 2005 III IV I 3.6 6.6 2.4 1.3 29.0 2.8 19.8 3.5 18.9 3.8 2.5 3.1 3.7 4.2 2.4 2.3 –0.3 4.0 –9.6 5.4 3.0 3.0 50.1 39.5 2.3 2.8 40.8 –10.9 2.6 3.9 2006 II III IV 2.8 3.9 1.4 7.3 4.7 2.7 51.7 2.5 14.0 3.2 4.5 1.2 5.8 1.5 4.4 1.0 1.2 1.2 30.6 –30.5 3.6 2.5 21.8 34.2 4.3 1.0 –3.0 6.0 5.6 0.9 I II 2007 III IV I 4.8 2.4 1.1 2.1 0.6 9.6 4.6 3.4 1.1 0.2 2.4 2.0 2.0 4.4 2.1 4.3 –1.4 –9.9 –7.0 –6.2 17.0 –10.9 15.1 –21.6 6.2 4.4 2.9 0.6 2.9 0.4 7.3 20.7 5.1 27.0 –1.3 4.8 2.3 1.0 1.9 0.6 –8.9 17.5 –12.4 0.8 –12.5 5.7 2.4 0.8 2.6 0.3 2008 IV Ir II III 3.8 5.4 3.1 3.0 1.0 3.9 35.7 3.6 14.8 4.2 4.9 0.6 1.0 11.7 –1.6 0.9 3.1 3.1 3.3 –4.2 –7.0 –11.9 13.1 –26.0 –16.7 4.7 1.5 1.5 49.8 26.6 14.0 4.6 0.4 0.9 9.6 –3.3 –8.0 5.6 0.2 0.8 3.1 4.3 2.3 3.4 4.2 3.0 35.1 2.9 5.9 3.6 2.9 5.0 2.3 –0.1 –1.3 3.0 19.4 2.8 0.6 3.2 3.2 3.2 3.4 3.7 3.1 3.2 3.1 3.3 3.3 2.9 2.7 2.4 2.8 2.7 2.4 3.8 3.4 3.8 4.2 3.4 2.3 2.8 2.4 2.8 2.6 3.2 3.1 3.4 3.6 2.8 3.9 4.1 4.1 3.6 4.0 2.6 2.6 2.7 3.5 2.6 3.5 2.9 3.6 4.6 2.7 3.5 3.5 3.7 3.7 3.2 3.4 3.4 3.5 2.7 3.2 3.5 3.2 3.6 4.2 3.2 2.4 2.6 2.5 2.5 2.5 1.7 2.4 1.8 0.1 2.3 4.2 3.3 4.3 3.8 3.1 2.6 1.6 2.8 3.8 1.5 1.0 1.7 1.2 1.8 1.9 2.4 2.1 2.6 3.7 2.3 2.7 2.1 2.8 3.6 2.3 3.9 2.9 2.2 2.7 1.7 3.5 2.8 2.2 2.6 1.9 2.8 2.5 2.1 2.5 1.9 4.3 3.8 2.7 3.4 1.9 2.9 2.0 1.7 1.5 1.1 3.9 3.0 2.1 2.9 1.8 3.8 2.2 2.6 1.9 2.3 3.7 3.4 2.1 3.1 1.5 4.8 4.3 1.7 4.3 1.2 3.9 2.8 2.4 2.6 1.9 2.9 1.7 2.0 1.5 1.8 4.5 4.3 2.9 4.3 2.6 2.7 2.6 2.3 2.4 2.1 0.2 –0.9 1.9 –1.6 1.6 3.9 3.5 2.4 3.6 2.4 4.0 4.3 1.4 4.7 1.2 1.9 1.8 2.0 1.4 1.5 3.9 3.9 2.5 4.0 2.3 3.7 3.6 2.3 3.8 2.2 r Revised 1. For some components of final sales of computers, includes computer parts. 2. Farm output less intermediate goods and services purchased. 3. 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.
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