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NEWS RELEASE EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, THURSDAY, MARCH 26, 2009 Lisa Mataloni: (202) 606-5304 (GDP) Andrew Hodge: (202) 606-5564 (Profits) Recorded message: (202) 606-5306 BEA 09-11 GROSS DOMESTIC PRODUCT: FOURTH QUARTER 2008 (FINAL) CORPORATE PROFITS: FOURTH QUARTER 2008 (FINAL) Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- decreased at an annual rate of 6.3 percent in the fourth quarter of 2008, (that is, from the third quarter to the fourth quarter), according to final estimates released by the Bureau of Economic Analysis. In the third quarter, real GDP decreased 0.5 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 decrease in real GDP was 6.2 percent (see "Revisions" on page 3). The decrease in real GDP in the fourth quarter primarily reflected negative contributions from exports, personal consumption expenditures, equipment and software, and residential fixed investment that were partly offset by a positive contribution from federal government spending. Imports, which are a subtraction in the calculation of GDP, decreased. Most of the major components contributed to the much larger decrease in real GDP in the fourth quarter than in the third. The largest contributors were a downturn in exports and a much larger decrease in equipment and software. The most notable offset was a much larger decrease in imports. 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 - - 2Final sales of computers subtracted 0.02 percentage point from the fourth-quarter change in real GDP after subtracting 0.01 percentage point from the third-quarter change. Motor vehicle output subtracted 2.01 percentage points from the fourth-quarter change in real GDP after adding 0.16 percentage point to the third-quarter change. The price index for gross domestic purchases, which measures prices paid by U.S. residents, decreased 3.9 percent in the fourth quarter, 0.2 percentage point less of a decrease than the preliminary estimate; this index increased 4.5 percent in the third quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 1.2 percent in the fourth quarter, compared with an increase of 2.8 percent in the third. Real personal consumption expenditures decreased 4.3 percent in the fourth quarter, compared with a decrease of 3.8 percent in the third. Real nonresidential fixed investment decreased 21.7 percent, compared with a decrease of 1.7 percent. Nonresidential structures decreased 9.4 percent, in contrast to an increase of 9.7 percent. Equipment and software decreased 28.1 percent, compared with a decrease of 7.5 percent. Real residential fixed investment decreased 22.8 percent, compared with a decrease of 16.0 percent. Real exports of goods and services decreased 23.6 percent in the fourth quarter, in contrast to an increase of 3.0 percent in the third. Real imports of goods and services decreased 17.5 percent, compared with a decrease of 3.5 percent. Real federal government consumption expenditures and gross investment increased 7.0 percent in the fourth quarter, compared with an increase of 13.8 percent in the third. National defense increased 3.4 percent, compared with an increase of 18.0 percent. Nondefense increased 15.3 percent, compared with an increase of 5.1 percent. Real state and local government consumption expenditures and gross investment decreased 2.0 percent, in contrast to an increase of 1.3 percent. The real change in private inventories subtracted 0.11 percentage point from the fourth-quarter change in real GDP, after adding 0.84 percentage point to the third-quarter change. Private businesses decreased inventories $25.8 billion in the fourth quarter, following a decrease of $29.6 billion in the third quarter and a decrease of $50.6 billion in the second. Real final sales of domestic product -- GDP less change in private inventories -- decreased 6.2 percent in the fourth quarter, compared with a decrease of 1.3 percent in the third. Gross domestic purchases Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- decreased 5.9 percent in the fourth quarter, compared with a decrease of 1.5 percent in the third. - more - - 3Gross national product Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- decreased 5.6 percent in the fourth quarter, compared with a decrease of 0.2 percent in the third. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which increased $21.3 billion in the fourth quarter after increasing $9.9 billion in the third; in the fourth quarter, receipts decreased $77.2 billion, and payments decreased $98.5 billion. Current-dollar GDP Current-dollar GDP -- the market value of the nation's output of goods and services -- decreased 5.8 percent, or $212.5 billion, in the fourth quarter to a level of $14,200.3 billion. In the third quarter, current-dollar GDP increased 3.4 percent, or $118.3 billion. Revisions The final estimate of the fourth-quarter change in real GDP is 0.1 percentage point, or $2.9 billion, lower than the preliminary estimate issued last month. The downward revision to the percent change in real GDP primarily reflected downward revisions to private inventory investment, to exports of services, and to nonresidential structures that were partly offset by a downward revision to imports of services and an upward revision to exports of goods. Advance Preliminary Final (Percent change from preceding quarter) Real GDP.................................................. Current-dollar GDP.................................. Gross domestic purchases price index…. -3.8 -4.1 -4.6 -6.2 -5.8 -4.1 -6.3 -5.8 -3.9 2008 GDP Real GDP increased 1.1 percent in 2008 (that is, from the 2007 annual level to the 2008 annual level), compared with an increase of 2.0 percent in 2007. The major contributors to the increase in real GDP in 2008 were exports, personal consumption expenditures (PCE) for services, federal government spending, nonresidential structures, and state and local government spending. These were partly offset by negative contributions from residential fixed investment, PCE for goods, private inventory investment, and equipment and software. Imports, which are a subtraction in the calculation of GDP, decreased. - more - - 4The slowdown in real GDP in 2008 primarily reflected a sharp deceleration in PCE, a downturn in equipment and software, and decelerations in exports and in state and local government spending that were partly offset by a sharp downturn in imports, an acceleration in federal government spending, and a smaller decrease in private inventory investment. The price index for gross domestic purchases increased 3.2 percent in 2008, compared with an increase of 2.8 percent in 2007. Current-dollar GDP increased 3.3 percent, or $457.1 billion, in 2008. Current-dollar GDP increased 4.8 percent, or $629.1 billion, in 2007. During 2008 (that is, measured from the fourth quarter of 2007 to the fourth quarter 2008), real GDP decreased 0.8 percent. Real GDP increased 2.3 percent during 2007. The price index for gross domestic purchases increased 2.0 percent during 2008, compared with an increase of 3.3 percent during 2007. Corporate Profits Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $250.3 billion in the fourth quarter, compared with a decrease of $18.5 billion in the third quarter. Current-production cash flow (net cash flow with inventory valuation and capital consumption adjustments) -- the internal funds available to corporations for investment -decreased $97.0 billion in the fourth quarter, in contrast to an increase of $43.1 billion in the third. Taxes on corporate income decreased $130.3 billion in the fourth quarter, compared with a decrease of $13.3 billion in the third. Profits after tax with inventory valuation and capital consumption adjustments decreased $120.1 billion, compared with a decrease of $5.2 billion. Dividends decreased $32.8 billion, compared with a decrease of $5.3 billion; current-production undistributed profits decreased $87.4 billion, in contrast to an increase of $0.3 billion. Domestic profits of financial corporations decreased $178.7 billion in the fourth quarter, compared with a decrease of $75.5 billion in the third. Domestic profits of nonfinancial corporations decreased $89.1 billion in the fourth quarter, in contrast to an increase of $52.1 billion in the third. In the fourth quarter, real gross value added of nonfinancial corporations decreased, and profits per unit of real product decreased. The decrease in unit profits reflected an increase in unit prices that was more than offset by increases in both the unit labor and nonlabor costs corporations incurred. The rest-of-the-world component of profits increased $17.5 billion in the fourth quarter, compared with an increase of $4.9 billion in the third. This measure is calculated as (1) receipts by U.S. residents of earnings from their foreign affiliates plus dividends received by U.S. residents from unaffiliated foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign parents plus dividends paid by U.S. corporations to unaffiliated foreign residents. The fourth-quarter increase was accounted for by a larger decrease in payments than in receipts. - more - - 5- 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 wholesale trade; the largest decrease was in manufacturing. Within manufacturing, the largest decreases were in petroleum and coal products, “other” durable goods, and chemical products. Profits before tax decreased $499.2 billion in the fourth quarter, compared with a decrease of $56.3 billion in the third. The before-tax measure of profits does not reflect, as does profits from current production, the capital consumption and inventory valuation adjustments. These adjustments convert depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to the current-cost measures used in the national income and product accounts. The capital consumption adjustment decreased $0.1 billion in the fourth quarter (from -$88.0 billion to -$88.1 billion), compared with a decrease of $25.3 billion in the third. The inventory valuation adjustment increased $249.0 billion (from -$90.9 billion to $158.1 billion), compared with an increase of $63.1 billion. Corporate profits in 2008 Profits from current production decreased 10.1 percent in 2008, compared with a decrease of 1.6 percent in 2007. Domestic profits decreased 16.0 percent, compared with a decrease of 7.4 percent. The rest-of-the-world component of profits increased 12.2 percent, compared with an increase of 28.9 percent. Taxes on corporate income decreased 18.6 percent in 2008, compared with a decrease of 4.0 percent in 2007. Profits after tax with inventory valuation and capital consumption adjustments decreased 6.9 percent, compared with a decrease of 0.6 percent. Dividends increased 5.5 percent, compared with an increase of 12.3 percent; current-production undistributed profits decreased 31.1 percent, compared with a decrease of 18.9 percent. According to the measure of profits before tax with inventory valuation adjustment, domestic profits of financial and nonfinancial corporations decreased in 2008. The decrease in nonfinancial corporations reflected decreases in all industries shown. The largest decrease was in manufacturing, and within manufacturing, the largest decreases were in “other” durable goods and in motor vehicles. * * * 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 – April 29, 2009, at 8:30 A.M. EDT for: Gross Domestic Product: First Quarter 2009 (Advance) - more - Table 1. Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period Seasonally adjusted at annual rates 2006 2007 2008 r 2005 I II 2006 III IV I II 2007 III IV I II 2008 III IV I II III Gross domestic product (GDP)................ 2.8 2.0 1.1 3.0 2.6 3.8 1.3 4.8 2.7 0.8 1.5 0.1 4.8 4.8 –0.2 0.9 2.8 –0.5 Personal consumption expenditures.................. 3.0 2.8 0.2 1.7 3.6 3.7 1.4 4.3 2.8 2.2 3.7 3.9 2.0 2.0 1.0 0.9 1.2 –3.8 Durable goods .................................................... 4.5 4.8 –4.3 0.6 12.1 5.4 –11.7 18.9 1.8 3.5 4.2 9.2 5.0 2.3 0.4 –4.3 –2.8 –14.8 Nondurable goods .............................................. 3.7 2.5 –0.6 2.4 4.2 3.0 4.7 4.4 3.1 2.3 3.1 3.5 1.9 1.2 0.3 –0.4 3.9 –7.1 Services.............................................................. 2.5 2.6 1.5 1.7 1.7 3.8 2.5 1.6 2.8 2.0 3.9 3.1 1.4 2.4 1.4 2.4 0.7 –0.1 Gross private domestic investment .................... 2.1 –5.4 –6.7 9.1 –5.1 4.0 12.2 6.2 –0.4 –5.3 –15.0 –9.6 6.2 3.5 –11.9 –5.8 –11.5 0.4 Fixed investment ................................................. 1.9 –3.1 –5.0 5.3 7.6 5.3 2.3 8.3 –2.5 –4.8 –7.6 –3.4 3.0 –0.9 –6.2 –5.6 –1.7 –5.3 Nonresidential ................................................. 7.5 4.9 1.6 3.7 6.3 6.1 3.7 15.9 6.4 5.3 –1.0 3.4 10.3 8.7 3.4 2.4 2.5 –1.7 Structures.................................................... 8.2 12.7 11.2 7.5 –1.3 –9.2 1.9 15.6 19.7 14.3 2.5 11.2 18.3 20.5 8.5 8.6 18.5 9.7 Equipment and software ............................. 7.2 1.7 –3.0 2.3 9.2 12.2 4.4 16.3 1.7 2.0 –2.4 0.0 6.9 3.6 1.0 –0.6 –5.0 –7.5 Residential ...................................................... –7.1 –17.9 –20.8 8.1 9.7 4.0 0.2 –3.6 –16.6 –21.4 –19.5 –16.2 –11.5 –20.6 –27.0 –25.1 –13.3 –16.0 Change in private inventories ............................. ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... Net exports of goods and services..................... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... Exports ............................................................... 9.1 8.4 6.2 8.1 8.8 0.4 10.9 16.7 5.5 3.5 15.6 0.6 8.8 23.0 4.4 5.1 12.3 3.0 Goods ............................................................. 9.9 7.5 6.0 7.1 14.5 –0.8 13.2 18.1 6.7 3.6 10.4 2.1 6.9 21.8 5.1 4.5 16.3 3.7 Services .......................................................... 7.2 10.5 6.6 10.2 –2.8 3.2 5.7 13.4 2.7 3.2 28.6 –2.7 13.3 25.9 2.7 6.4 3.8 1.4 Imports................................................................ 6.0 2.2 –3.5 3.2 0.6 0.8 15.3 10.3 0.1 3.1 2.0 7.7 –3.7 3.0 –2.3 –0.8 –7.3 –3.5 Goods ............................................................. 6.0 1.7 –4.1 5.0 0.7 1.1 17.0 9.0 0.5 3.8 –0.8 8.4 –4.0 2.4 –2.6 –2.0 –7.1 –4.7 Services .......................................................... 6.0 4.4 0.2 –5.7 0.0 –1.0 6.8 17.7 –2.0 –0.3 18.4 4.2 –2.0 6.3 –0.9 5.5 –8.0 3.3 Government consumption expenditures and gross investment .............................................. 1.7 2.1 2.9 –0.2 0.9 3.4 –1.7 3.9 1.2 1.7 1.6 0.9 3.9 3.8 0.8 1.9 3.9 5.8 Federal................................................................ 2.3 1.6 6.0 1.1 1.1 9.7 –7.2 10.0 –1.5 1.9 1.8 –3.6 6.7 7.2 –0.5 5.8 6.6 13.8 National defense ............................................. 1.6 2.5 7.2 3.1 4.0 12.3 –14.2 8.8 1.9 –0.9 7.0 –5.9 8.5 10.2 –0.9 7.3 7.3 18.0 Nondefense..................................................... 3.6 –0.2 3.6 –2.7 –4.5 4.4 8.9 12.4 –8.1 7.7 –8.1 1.2 3.1 1.2 0.4 2.9 5.0 5.1 State and local .................................................... 1.3 2.3 1.1 –1.0 0.8 –0.1 1.6 0.5 2.9 1.6 1.5 3.6 2.4 1.9 1.6 –0.3 2.5 1.3 Addenda: Final sales of domestic product .......................... 2.8 2.4 1.4 2.3 4.8 4.1 –0.3 5.1 2.3 0.9 2.9 1.1 4.3 4.0 0.8 0.9 4.4 –1.3 Gross domestic purchases ................................. 2.6 1.4 –0.3 2.5 1.7 3.7 2.5 4.5 2.0 0.9 0.2 1.2 2.9 2.6 –1.0 0.1 –0.1 –1.5 Final sales to domestic purchasers .................... 2.6 1.8 0.0 1.9 3.7 3.9 1.0 4.8 1.6 1.0 1.5 2.2 2.5 1.9 –0.1 0.1 1.3 –2.3 Gross national product (GNP) ............................ 2.6 2.2 1.3 4.7 2.2 4.1 0.4 4.9 2.8 0.2 2.0 –0.3 4.4 6.3 1.3 0.1 2.1 –0.2 Disposable personal income............................... 3.5 2.8 1.3 –4.7 2.5 –1.3 7.5 5.1 1.3 2.3 5.8 4.4 –0.6 3.1 0.6 –0.7 10.7 –8.5 Current-dollar measures: GDP ................................................................ 6.1 4.8 3.3 7.1 4.8 8.1 5.1 8.6 5.5 3.6 3.7 4.3 6.9 6.3 2.3 3.5 4.1 3.4 Final sales of domestic product ...................... 6.1 5.2 3.6 6.5 7.0 8.4 3.5 8.8 5.1 3.7 5.2 5.3 6.4 5.6 3.6 3.6 5.6 2.6 Gross domestic purchases ............................. 6.1 4.2 2.9 6.3 4.8 9.1 6.5 7.5 5.7 3.8 0.7 5.0 6.4 4.9 2.6 3.5 4.3 2.9 Final sales to domestic purchasers................. 6.1 4.6 3.2 5.7 6.9 9.4 5.0 7.8 5.3 3.9 2.1 5.9 5.9 4.2 3.9 3.7 5.7 2.2 GNP ................................................................ 5.9 4.9 3.5 8.8 4.4 8.4 4.2 8.7 5.6 3.0 4.1 4.0 6.4 7.9 3.9 2.6 3.4 3.7 Disposable personal income ........................... 6.4 5.5 4.6 –2.4 5.1 3.4 11.1 6.9 4.6 5.4 5.3 7.9 3.0 5.7 4.9 2.9 15.4 –3.9 r Revised See “Explanatory Note” at the end of the tables. IV r –6.3 –4.3 –22.1 –9.4 1.5 –23.0 –22.0 –21.7 –9.4 –28.1 –22.8 ........... ........... –23.6 –32.0 –1.5 –17.5 –19.6 –6.7 1.3 7.0 3.4 15.3 –2.0 –6.2 –5.9 –5.8 –5.6 2.7 –5.8 –6.1 –9.6 –9.9 –5.0 –2.3 Table 2. Contributions to Percent Change in Real Gross Domestic Product Seasonally adjusted at annual rates 2006 2007 2008 r 2005 I 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. 2.8 2.0 1.1 2.13 0.36 –0.09 0.35 0.10 0.74 0.38 0.16 –0.05 0.25 1.02 0.34 –0.02 –0.05 0.03 0.05 0.31 0.09 0.24 0.35 0.32 0.77 0.23 0.54 1.95 0.38 0.07 0.24 0.08 0.50 0.18 0.13 0.02 0.17 1.07 0.16 0.07 0.03 0.04 0.05 0.35 0.13 0.31 –0.90 –0.50 0.52 0.40 0.13 0.16 –0.33 –0.42 0.10 –0.01 –0.13 –0.02 0.01 –0.14 0.02 0.62 0.10 –0.01 –0.04 0.02 –0.02 0.43 –0.02 0.14 –1.02 –0.76 0.17 0.39 –0.22 0.32 0.34 0.18 0.15 0.06 0.11 0.07 0.09 0.05 –0.45 0.03 –0.03 0.06 –0.02 0.96 0.73 0.23 –0.98 –0.82 –0.16 0.11 0.15 0.08 0.02 –0.17 –0.07 –1.02 –0.40 0.04 –0.44 0.58 0.95 0.59 0.36 –0.37 –0.25 –0.12 0.05 0.08 0.05 –0.06 –0.32 –0.02 –0.93 –0.26 0.02 –0.28 1.40 0.76 0.51 0.25 0.64 0.65 –0.01 0.32 0.16 0.08 0.04 0.04 0.08 0.05 0.03 0.16 0.16 0.00 0.40 0.11 0.12 0.11 0.01 0.00 0.00 0.00 0.28 0.20 0.09 1.67 1.35 –0.24 –0.03 0.15 0.97 1.61 –0.55 –0.03 0.13 II 3.0 2.6 2006 III 3.8 1.25 2.50 2.59 0.04 0.95 0.44 –0.32 0.53 0.15 0.26 0.29 0.37 0.11 0.13 –0.08 0.49 0.83 0.59 0.32 0.29 0.45 0.15 0.27 0.00 –0.09 0.09 0.02 0.12 0.17 0.11 0.72 0.72 1.55 0.34 0.36 0.39 0.01 0.02 0.15 0.03 0.00 0.12 –0.02 0.01 0.04 0.02 0.02 0.02 0.31 0.37 0.48 0.08 0.02 0.04 –0.03 –0.08 0.46 1.48 –0.86 0.69 0.85 1.21 0.88 0.37 0.64 0.64 0.19 –0.04 –0.26 0.18 0.68 0.90 0.23 0.31 0.36 IV 1.3 I II 2007 III IV I II 2008 III IV I II III IV r 4.8 2.7 0.8 1.5 0.1 4.8 4.8 –0.2 0.9 2.8 –0.5 –6.3 0.94 2.86 –1.02 1.37 –1.59 0.53 0.41 0.55 0.17 0.29 0.93 0.85 0.37 0.50 0.35 0.18 –0.04 –0.17 0.25 0.33 1.02 0.64 0.35 0.37 –0.01 –0.42 –0.04 –0.42 0.03 0.01 0.01 0.08 0.39 0.37 0.04 0.08 0.24 0.16 1.98 1.15 0.41 1.39 0.40 1.62 0.05 0.42 0.35 1.20 1.88 0.14 0.06 0.15 –0.06 0.62 0.43 0.02 –0.11 0.27 1.12 0.31 0.26 0.20 0.06 0.08 0.15 0.04 0.27 –0.02 –0.40 0.71 0.54 0.16 1.52 0.27 0.06 0.20 0.00 0.46 0.10 0.14 0.03 0.19 0.79 0.25 0.10 0.05 0.05 0.03 0.07 0.18 0.15 –0.92 –0.81 0.59 0.42 0.17 2.55 0.33 0.01 0.23 0.09 0.62 0.20 0.12 0.03 0.26 1.61 0.22 0.03 –0.01 0.04 0.10 0.35 0.36 0.55 –2.68 –1.27 –0.09 0.08 –0.18 2.71 0.71 0.30 0.34 0.07 0.71 0.12 0.25 0.13 0.22 1.29 0.12 0.08 0.07 0.00 0.03 0.63 0.06 0.37 –1.63 –0.57 0.33 0.35 –0.02 1.42 0.40 0.05 0.17 0.17 0.40 0.27 0.08 –0.07 0.12 0.62 0.09 0.02 –0.04 0.06 0.04 0.13 0.08 0.27 0.94 0.47 1.07 0.57 0.50 1.44 0.19 –0.22 0.26 0.15 0.25 0.03 0.12 –0.01 0.11 1.00 0.08 0.06 0.02 0.04 0.06 0.45 0.07 0.28 0.54 –0.15 0.91 0.65 0.26 0.67 0.03 –0.03 0.11 –0.06 0.05 0.27 –0.09 –0.05 –0.08 0.59 0.12 0.09 0.01 0.08 –0.02 0.48 –0.01 –0.08 –1.93 –0.97 0.36 0.29 0.07 0.61 –0.33 –0.35 0.05 –0.04 –0.08 0.13 0.08 –0.18 –0.10 1.02 0.05 0.07 0.11 –0.05 0.04 0.59 –0.14 0.40 –0.89 –0.86 0.26 0.30 –0.04 0.87 –0.21 –0.64 0.39 0.04 0.80 0.40 0.28 –0.20 0.33 0.28 0.18 –0.17 –0.19 0.02 –0.08 0.35 0.04 –0.03 –1.74 –0.25 0.27 0.64 –0.37 –2.75 –1.16 –0.83 –0.25 –0.08 –1.57 –0.75 –0.38 –0.45 0.01 –0.03 0.08 –0.33 –0.38 0.05 –0.06 0.31 –0.04 0.02 0.06 –0.79 –0.19 0.36 –0.55 –2.99 –1.67 –1.13 –0.25 –0.29 –1.97 –1.52 –0.24 0.23 –0.43 0.66 0.04 0.31 0.29 0.02 –0.17 0.38 –0.03 0.14 –3.47 –3.36 –2.56 –0.38 –2.18 0.31 0.61 0.15 0.34 0.04 0.57 0.41 0.37 0.27 0.30 –0.16 –0.92 –0.06 0.12 0.09 0.07 0.16 0.04 0.22 0.03 0.23 0.12 –0.04 0.19 –0.20 0.24 0.31 0.04 0.17 0.04 0.48 0.57 0.25 0.63 –2.07 –0.19 –0.22 0.14 0.19 0.85 –2.20 –0.39 0.28 0.79 –0.07 0.80 0.89 0.04 0.49 0.98 –0.06 0.31 –0.09 0.10 –0.52 –0.10 –0.11 –0.67 –0.10 –0.14 0.15 0.00 0.03 0.22 0.16 0.10 0.03 0.02 0.41 0.19 –0.07 –0.24 0.52 0.07 0.15 0.01 –0.23 1.56 –0.24 –0.15 0.02 1.71 –0.26 –1.26 0.09 1.09 1.70 0.91 1.27 0.18 0.42 –2.35 –1.61 –2.18 –1.18 –0.17 –0.43 0.17 0.02 –0.04 0.25 –0.25 0.02 –1.11 0.38 –0.24 0.62 0.59 0.58 0.49 0.09 0.01 –0.04 0.05 0.13 0.07 0.14 –0.12 0.06 –0.12 –1.40 –0.11 0.00 –0.12 –0.12 0.39 0.28 0.11 –0.51 –0.51 0.01 0.02 0.14 –0.11 –0.02 –0.15 –0.05 –1.18 –1.41 0.12 –1.52 1.33 1.66 0.78 0.87 –0.33 0.13 –0.46 0.17 0.21 0.19 –0.10 –0.21 –0.28 –0.91 –1.06 –0.07 –0.99 –1.20 0.06 0.15 –0.09 –1.25 –1.14 –0.11 0.09 0.22 0.09 0.34 –0.32 0.07 –0.60 0.47 0.14 0.33 1.66 1.01 0.55 0.46 0.65 0.59 0.06 0.12 0.12 0.10 0.16 0.09 0.10 –0.04 –0.20 –0.07 –0.18 0.06 0.08 –1.06 –1.33 0.69 –0.96 –0.08 0.47 0.77 –1.43 2.03 0.94 2.54 0.53 1.66 0.43 0.88 0.10 –0.51 0.40 –0.34 0.38 –0.17 0.02 0.10 0.16 0.00 0.01 –0.16 –0.16 –1.12 –0.02 –0.17 0.15 0.77 0.63 0.39 0.24 0.14 0.29 –0.15 0.08 0.04 0.18 –0.05 –0.58 –0.04 –0.52 –1.50 –0.14 –1.36 2.93 1.54 1.39 0.15 1.39 1.14 0.25 –0.16 –0.08 0.08 –0.12 –0.47 0.20 –0.60 0.84 0.01 0.83 1.05 0.40 0.34 0.06 0.65 0.74 –0.09 –0.28 –0.23 –0.42 –0.19 –0.75 –0.31 –0.80 –0.11 0.06 –0.17 –0.15 –3.44 –3.38 –0.06 3.29 3.09 0.20 0.57 0.43 0.35 0.27 0.08 0.08 0.06 0.02 0.14 0.13 0.01 –0.04 0.08 0.14 0.22 –0.08 –0.07 –0.03 –0.03 –0.12 –0.13 0.01 –0.34 0.72 –0.53 0.66 –0.73 0.39 –0.70 0.40 –0.02 –0.01 0.20 0.27 0.10 0.22 0.10 0.05 0.19 0.06 0.09 0.23 0.10 –0.18 0.23 –0.11 0.09 –0.02 0.11 –0.20 –0.14 –0.07 0.34 0.16 0.18 0.32 0.13 –0.04 0.00 –0.05 0.17 0.15 0.03 0.19 0.24 –0.05 0.30 0.12 0.32 0.14 0.18 –0.20 –0.20 0.01 0.18 0.23 –0.06 0.17 –0.26 –0.29 –0.08 –0.21 0.03 0.06 –0.04 0.43 0.20 0.24 0.77 0.47 0.40 0.28 0.12 0.07 0.02 0.05 0.30 0.17 0.13 0.75 0.16 0.51 –0.04 0.48 –0.04 0.45 –0.06 0.03 0.02 0.03 0.01 0.03 –0.02 –0.01 0.02 0.24 0.19 0.15 0.15 0.09 0.04 0.38 0.41 0.34 0.31 0.04 0.06 0.06 0.01 –0.03 0.14 –0.18 0.78 0.47 0.36 0.15 0.21 0.11 0.08 0.03 0.31 0.12 0.19 1.14 0.97 0.85 0.72 0.14 0.12 0.11 0.00 0.17 0.11 0.06 0.26 0.52 0.18 0.17 0.01 0.34 0.21 0.14 –0.25 0.00 –0.25 0.31 1.32 –0.52 –0.50 0.12 1.12 1.24 0.62 0.15 0.06 0.65 0.52 0.15 –1.22 0.21 1.84 1.26 –0.42 –0.34 0.15 0.51 1.29 –1.00 0.40 0.04 0.42 2.19 –1.10 –0.65 0.20 –0.80 1.26 –0.41 0.10 –0.03 3.08 1.61 0.09 0.13 0.21 2.71 2.35 –0.30 0.47 0.28 0.29 1.62 –1.03 –0.41 0.05 1.49 1.02 0.32 –1.01 0.17 –1.29 0.87 –0.09 0.16 –0.01 –6.16 1.17 –1.35 –2.01 –0.02 0.17 0.65 0.08 0.66 0.18 0.56 0.06 0.45 0.12 0.11 –0.11 0.10 –0.12 0.03 0.01 0.07 0.10 –0.01 0.02 0.06 0.08 –0.07 1.49 0.59 0.54 0.24 0.22 1.68 2.23 –0.06 0.76 0.07 0.33 3.40 1.48 –0.07 0.59 0.16 0.01 0.79 –0.97 –0.86 0.14 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 2008 r 2007 Change from preceding period Seasonally adjusted at annual rates 2008 r 2008 2007 2008 2008 2008 r IV 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 .......................... I II III IV r IV I II III IV r 14,264.6 14,031.2 14,150.8 14,294.5 14,412.8 14,200.3 11,652.0 11,620.7 11,646.0 11,727.4 11,712.4 11,522.1 10,057.9 9,892.7 10,002.3 10,138.0 10,163.5 9,927.9 8,272.1 8,298.2 8,316.1 8,341.3 8,260.6 8,170.5 1,023.2 1,083.0 1,071.0 1,059.3 1,016.2 946.3 1,188.5 1,250.6 1,237.0 1,228.3 1,180.1 1,108.6 379.9 437.8 424.7 400.6 370.7 323.8 387.2 442.6 430.2 407.2 376.9 334.6 411.7 415.3 415.1 423.0 411.2 397.4 614.3 606.6 609.3 629.6 616.2 602.2 231.6 229.9 231.3 235.7 234.3 225.2 226.5 230.8 229.4 230.8 228.1 217.7 2,965.1 2,906.2 2,950.7 3,026.2 3,044.6 2,839.0 2,378.4 2,400.2 2,397.9 2,420.7 2,376.3 2,318.6 1,399.2 1,359.8 1,380.5 1,416.3 1,418.4 1,381.7 1,109.3 1,118.7 1,122.4 1,133.6 1,112.3 1,069.0 373.6 373.2 375.5 382.4 374.4 362.1 414.5 413.2 416.3 427.2 412.2 402.3 411.8 405.3 423.7 441.8 463.6 318.1 189.2 197.0 194.0 190.8 184.1 187.9 780.5 767.9 771.1 785.7 788.2 777.1 689.3 687.9 684.8 695.1 695.5 681.6 6,069.6 5,903.5 5,980.6 6,052.5 6,102.7 6,142.5 4,714.3 4,676.1 4,704.3 4,712.1 4,711.3 4,729.4 1,513.7 1,482.7 1,495.1 1,508.8 1,520.9 1,529.7 1,182.4 1,175.9 1,177.3 1,182.3 1,184.5 1,185.6 553.0 534.3 541.7 554.5 555.8 559.9 420.1 424.0 425.9 421.3 412.4 420.6 232.3 221.1 228.1 236.3 231.9 233.0 148.0 151.2 154.0 149.6 141.2 147.5 320.6 313.2 313.6 318.1 323.9 326.9 273.9 273.9 272.5 273.2 274.6 275.2 373.0 362.9 368.8 372.9 376.8 373.6 297.4 299.9 301.2 298.9 297.2 292.2 1,781.2 1,721.9 1,746.6 1,769.3 1,792.9 1,816.1 1,374.8 1,344.5 1,360.8 1,370.3 1,378.9 1,389.2 412.6 409.7 408.2 412.3 415.8 413.9 332.2 336.3 332.3 333.4 332.1 331.2 1,436.1 1,392.0 1,420.2 1,434.6 1,440.4 1,449.3 1,105.5 1,093.9 1,105.0 1,104.0 1,104.6 1,108.4 1,993.5 2,092.3 2,056.1 2,000.9 2,010.9 1,906.1 1,689.1 1,781.3 1,754.7 1,702.0 1,703.7 1,596.0 2,040.5 2,113.4 2,081.7 2,077.0 2,060.6 1,942.7 1,718.9 1,788.2 1,762.4 1,754.9 1,731.1 1,627.0 1,552.8 1,542.1 1,553.6 1,571.9 1,581.2 1,504.3 1,405.4 1,414.7 1,423.1 1,431.8 1,425.7 1,341.1 553.4 508.7 522.7 549.8 572.4 568.4 338.8 319.7 326.4 340.5 348.4 339.9 999.4 1,033.4 1,030.9 1,022.1 1,008.8 935.8 1,047.0 1,090.1 1,088.6 1,074.7 1,054.0 970.5 535.8 89.8 240.5 205.5 180.6 112.2 170.8 487.7 –47.0 –2.4 –44.6 –669.2 1,859.4 1,283.1 576.3 2,528.6 2,115.2 413.4 532.5 95.7 235.6 201.2 179.9 148.4 172.6 571.3 –21.1 5.7 –26.7 –696.7 1,759.7 1,213.7 546.0 2,456.5 2,060.9 395.6 539.6 95.8 241.8 202.0 182.0 142.1 167.3 528.1 –25.6 0.2 –25.8 –705.7 1,820.8 1,256.9 563.9 2,526.5 2,118.0 408.5 550.9 96.8 244.6 209.5 183.2 121.4 166.5 505.0 –76.0 –4.1 –71.9 –718.2 1,923.2 1,343.7 579.5 2,641.4 2,225.5 415.9 544.5 89.2 242.5 212.9 182.2 105.5 176.6 479.4 –49.7 –4.2 –45.5 –707.7 1,968.9 1,374.3 594.6 2,676.6 2,251.0 425.6 128.1 19.3 –53.9 –59.5 20.3 –1.8 –14.2 –1.2 1.6 –8.9 2.0 68.1 10.7 –1.1 –3.1 3.0 –1.8 47.0 –2.8 15.6 –120.6 –89.6 22.5 34.2 –31.9 III IV r –15.0 –80.7 –48.2 –30.3 –13.4 –2.7 –44.4 –21.3 –15.0 –6.7 0.4 –0.8 2.2 –8.9 –8.4 1.4 –1.7 8.6 –1.3 0.6 1.7 –23.8 –6.1 7.9 –20.7 –190.3 –90.1 –71.5 –42.3 –14.0 –10.4 –57.7 –43.3 –9.9 3.8 –13.9 18.1 1.1 8.2 6.3 0.6 –5.0 10.3 –0.9 3.8 –107.7 –104.1 –84.6 –8.5 –83.5 508.2 685.0 677.6 689.6 702.9 695.5 651.8 31.1 –7.4 –43.7 77.4 .............. .............. .............. .............. .............. .............. .............. .............. .............. 233.0 248.4 245.1 251.0 252.3 249.5 240.8 11.4 –2.8 –8.7 197.8 226.1 223.5 223.6 230.6 233.6 216.6 8.1 3.0 –17.0 175.1 149.2 153.1 153.4 152.0 148.6 142.8 –6.5 –3.4 –5.8 79.8 99.6 131.9 127.0 108.6 93.6 69.3 –39.8 –15.0 –24.3 172.7 146.3 151.5 146.5 145.3 151.5 141.9 –2.1 6.2 –9.6 438.4 359.5 411.6 383.0 369.6 353.7 331.6 –94.3 –15.9 –22.1 –36.6 –29.0 –8.1 –10.2 –50.6 –29.6 –25.8 –26.5 21.0 3.8 –1.5 3.6 10.5 6.0 2.4 2.2 3.7 2.6 –0.2 1.5 –35.0 –34.3 –20.6 –17.9 –55.1 –33.3 –31.1 –30.6 21.8 2.2 –545.1 –390.2 –484.5 –462.0 –381.3 –353.1 –364.5 156.3 28.2 –11.4 1,724.7 1,514.1 1,482.1 1,500.6 1,544.7 1,556.1 1,454.9 88.2 11.4 –101.2 1,157.6 1,058.5 1,037.0 1,048.6 1,088.9 1,098.7 997.7 59.8 9.8 –101.0 567.1 455.2 444.7 451.7 455.8 457.4 455.7 28.3 1.6 –1.7 2,269.7 1,904.3 1,966.5 1,962.6 1,926.0 1,909.1 1,819.4 –68.1 –16.9 –89.7 1,866.1 1,608.1 1,670.2 1,662.0 1,631.6 1,612.2 1,526.8 –69.6 –19.4 –85.4 403.6 297.0 297.8 301.8 295.5 297.9 292.8 0.6 2.4 –5.1 2,882.4 2,742.9 2,798.1 2,873.7 2,946.1 2,911.4 1,071.9 998.3 1,026.5 1,056.1 1,098.0 1,107.0 734.9 679.3 699.9 723.3 759.5 757.0 639.7 594.7 613.8 629.0 659.6 656.6 95.2 84.6 86.1 94.3 99.9 100.4 337.0 319.0 326.6 332.9 338.5 350.0 292.2 276.9 284.2 289.2 294.5 300.9 44.8 42.1 42.4 43.7 44.0 49.1 1,810.4 1,744.6 1,771.6 1,817.6 1,848.1 1,804.4 1,454.4 1,395.2 1,426.3 1,462.7 1,485.7 1,443.0 356.0 349.4 345.3 354.9 362.4 361.4 .............. .............. .............. .............. .............. .............. 2,070.2 798.2 538.1 452.5 88.6 259.5 217.9 42.6 1,273.0 1,021.2 251.7 –161.8 2,029.4 761.7 509.9 431.9 79.9 251.5 212.0 40.2 1,267.5 1,013.9 253.4 –171.9 2,039.1 772.6 518.9 439.7 81.0 253.2 213.5 40.5 1,266.7 1,017.6 249.0 –178.7 2,058.9 785.0 528.1 443.4 87.9 256.3 215.6 41.6 1,274.4 1,020.6 253.7 –191.6 2,088.1 810.8 550.4 461.5 92.6 259.5 218.5 41.8 1,278.7 1,023.4 255.2 –162.8 11,681.0 12,035.2 12,063.6 11,652.0 647.2 536.3 11,762.3 11,628.0 12,103.2 12,109.8 11,620.7 749.9 611.7 11,758.3 11,653.7 12,105.8 12,113.3 11,646.0 690.9 575.2 11,760.9 11,778.8 12,102.6 12,153.0 11,727.4 667.2 571.6 11,822.2 11,739.2 12,057.8 12,084.1 11,712.4 653.9 548.5 11,817.3 11,552.2 11,874.5 11,904.0 11,522.1 576.7 450.0 11,648.7 157.6 –31.6 –2.4 128.1 –72.7 –97.0 152.5 –39.6 –44.8 –68.9 –15.0 –13.3 –23.1 –4.9 –187.0 –183.3 –180.1 –190.3 –77.2 –98.5 –168.6 Net domestic product.............................................. 12,432.3 12,272.6 12,372.9 12,491.3 12,514.8 12,350.2 10,055.1 10,096.1 10,093.2 10,151.2 10,062.4 9,913.7 29.2 –88.8 –148.7 14,311.6 14,933.8 14,980.7 14,264.6 798.3 665.1 14,397.8 14,052.3 14,728.0 14,749.0 14,031.2 907.4 742.0 14,196.6 14,176.4 14,856.6 14,882.2 14,150.8 843.2 705.1 14,289.0 14,370.5 15,012.7 15,088.7 14,294.5 822.8 708.9 14,408.3 14,462.5 15,120.5 15,170.2 14,412.8 815.6 688.7 14,539.6 14,236.9 14,745.4 14,782.0 14,200.3 711.6 557.7 14,354.3 2,094.7 58.1 29.2 6.6 824.5 45.3 25.8 13.7 555.0 36.0 22.3 4.6 465.6 26.7 18.1 4.1 92.9 10.6 4.7 0.3 268.9 9.1 3.2 9.4 224.0 6.2 2.9 5.5 46.4 3.3 0.2 4.6 1,272.3 14.0 4.3 –6.4 1,023.3 13.2 2.8 –0.1 248.8 0.8 1.5 –6.4 –114.0 .............. .............. .............. 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 2006 2007 2008 r 2005 I II 2006 III IV I II 2007 III IV I II 2008 III IV I II III IV r Gross domestic product (GDP) ............................... 3.2 2.7 2.2 4.0 2.1 4.1 3.7 3.5 2.7 2.8 2.2 4.1 2.0 1.5 2.8 2.6 1.1 3.9 0.5 Personal consumption expenditures ................................. 2.8 2.6 3.3 2.5 2.5 4.7 3.3 1.8 3.3 3.1 –0.5 3.4 3.6 2.5 4.3 3.6 4.3 5.0 –4.9 Durable goods .................................................................... –1.3 –1.8 –1.2 0.4 –0.9 –3.1 –0.9 –0.9 –0.8 –1.3 –2.7 –1.8 –1.6 –1.9 –1.6 –0.1 –1.6 –0.6 –3.5 Nondurable goods .............................................................. 3.0 3.0 5.3 1.5 2.0 11.2 2.3 0.3 4.9 4.4 –6.2 5.1 6.4 2.9 8.4 6.7 6.5 10.3 –16.6 Services.............................................................................. 3.5 3.3 3.2 3.3 3.5 3.3 4.7 3.0 3.3 3.3 2.8 3.6 3.3 3.1 3.5 2.8 4.2 3.4 1.1 Gross private domestic investment.................................... 4.2 1.4 0.7 4.7 4.0 5.0 5.4 5.2 3.5 1.6 3.3 1.6 –0.3 –0.3 1.3 –0.5 0.4 2.0 4.4 Fixed investment................................................................. 4.2 1.4 0.6 4.7 4.2 5.3 5.7 5.0 3.4 1.5 3.2 1.6 –0.2 –0.4 1.2 –0.2 0.8 2.3 1.2 Nonresidential................................................................. 3.3 1.4 1.6 4.4 2.7 2.0 4.4 4.3 3.3 1.7 2.9 1.3 0.3 –0.6 1.7 0.6 2.3 4.2 4.6 Structures.................................................................... 12.3 3.8 3.6 11.9 10.1 14.8 17.0 14.1 12.0 4.6 6.7 3.4 0.7 0.5 4.5 2.7 3.3 7.1 7.4 Equipment and software ............................................. 0.1 0.3 0.6 1.8 0.1 –2.3 0.2 0.7 –0.1 0.5 1.2 0.4 0.1 –1.2 0.4 –0.4 1.7 2.6 3.0 Residential ...................................................................... 5.9 1.5 –2.4 5.2 6.8 11.0 7.8 6.4 3.7 1.2 3.9 2.2 –1.3 0.3 0.0 –2.6 –3.5 –3.3 –9.4 Change in private inventories ............................................. ......... .......... .......... .......... .......... .......... .......... ......... .......... .......... .......... .......... .......... .......... ......... .......... .......... .......... .......... Net exports of goods and services .................................... ......... .......... .......... .......... .......... .......... .......... ......... .......... .......... .......... .......... .......... .......... ......... .......... .......... .......... .......... Exports ............................................................................... 3.5 3.5 5.3 4.6 3.5 2.5 3.2 2.9 5.8 4.7 –0.8 3.6 5.3 3.5 6.2 9.1 10.8 6.7 –23.0 Goods ............................................................................. 3.3 3.5 5.3 4.3 3.0 1.3 2.2 3.0 6.2 5.2 0.0 3.3 5.1 2.8 6.0 10.0 12.3 5.6 –26.0 Services.......................................................................... 3.8 3.5 5.4 5.2 4.6 5.3 5.5 2.7 4.9 3.7 –2.6 4.3 5.9 5.2 6.6 6.9 7.5 9.3 –16.1 Imports ............................................................................... 4.3 3.7 10.4 2.3 9.7 10.3 4.5 –1.1 10.3 5.0 –9.1 0.9 12.8 7.4 12.8 12.8 28.8 9.2 –37.3 Goods ............................................................................. 4.2 3.6 11.1 2.1 10.0 10.8 5.0 –2.0 10.4 5.4 –10.1 0.8 13.0 7.7 14.5 13.8 31.2 9.8 –41.3 Services.......................................................................... 4.8 3.7 7.1 3.5 7.9 7.8 2.0 4.1 9.9 3.2 –3.8 1.1 11.7 6.1 4.5 7.8 16.8 6.2 –13.3 Government consumption expenditures and gross investment......................................................................... 4.7 4.5 4.7 7.7 4.1 7.0 4.8 4.9 4.9 3.3 2.3 6.4 5.2 3.4 5.1 6.2 7.0 4.4 –5.8 Federal ............................................................................... 4.1 3.4 3.2 11.8 1.7 3.1 0.8 10.2 4.1 1.2 0.9 7.6 3.7 0.9 2.3 5.6 5.1 2.7 –3.4 National defense............................................................. 4.5 3.5 3.6 12.6 1.8 3.2 1.3 10.9 4.4 1.5 0.7 7.0 4.3 1.6 3.1 5.1 6.3 3.1 –4.5 Nondefense .................................................................... 3.4 3.1 2.6 10.2 1.6 3.0 –0.1 8.9 3.5 0.5 1.2 8.8 2.6 –0.5 0.5 6.8 2.8 1.9 –0.9 State and local.................................................................... 5.1 5.1 5.6 5.3 5.6 9.4 7.3 2.0 5.4 4.6 3.2 5.7 6.1 4.9 6.8 6.6 8.1 5.5 –7.3 Addenda: Final sales of domestic product .......................................... 3.2 2.7 2.2 4.0 2.1 4.1 3.8 3.5 2.7 2.7 2.2 4.1 2.0 1.5 2.8 2.7 1.2 4.0 0.1 Gross domestic purchases................................................. 3.4 2.8 3.2 3.7 3.1 5.2 3.9 2.9 3.6 2.9 0.6 3.6 3.3 2.2 4.0 3.5 4.2 4.5 –3.9 Final sales to domestic purchasers .................................... 3.4 2.8 3.2 3.7 3.1 5.2 4.0 2.8 3.6 2.9 0.6 3.7 3.3 2.2 4.0 3.5 4.3 4.5 –4.3 Gross national product (GNP) ............................................ 3.2 2.7 2.2 4.0 2.1 4.1 3.7 3.5 2.7 2.8 2.2 4.1 2.0 1.5 2.8 2.6 1.1 3.9 0.6 Implicit price deflators: GDP ................................................................................ 3.2 2.7 2.2 4.0 2.1 4.1 3.8 3.6 2.7 2.7 2.2 4.2 2.0 1.5 2.5 2.6 1.3 3.9 0.6 Gross domestic purchases ............................................. 3.4 2.8 3.2 3.7 3.1 5.2 4.0 2.9 3.6 2.9 0.6 3.7 3.3 2.2 3.7 3.4 4.4 4.4 –3.8 GNP ................................................................................ 3.2 2.7 2.2 4.0 2.1 4.1 3.8 3.6 2.7 2.8 2.1 4.2 2.0 1.5 2.5 2.5 1.3 3.9 0.6 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 2006 2007 2008 r 2007 IV 2008 I II III IV r Gross domestic product .................................................................... 115.054 117.388 118.692 118.374 118.631 119.460 119.308 117.369 Personal consumption expenditures............................................................... 119.135 122.456 122.743 123.130 123.395 123.770 122.572 121.235 Durable goods.................................................................................................. 137.274 143.908 137.666 144.856 143.284 142.273 136.695 128.413 Nondurable goods............................................................................................ 119.930 122.872 122.143 123.261 123.147 124.317 122.035 119.071 Services ........................................................................................................... 115.298 118.259 119.992 119.020 119.739 119.937 119.916 120.376 Gross private domestic investment ................................................................. 110.200 104.278 97.328 102.639 101.110 98.071 98.169 91.961 Fixed investment .............................................................................................. 111.109 107.717 102.375 106.503 104.969 104.522 103.102 96.907 Nonresidential .............................................................................................. 106.987 112.244 114.069 114.819 115.504 116.212 115.714 108.847 Structures ................................................................................................. 86.318 97.264 108.180 102.076 104.206 108.716 111.257 108.543 Equipment and software........................................................................... 115.467 117.412 113.939 118.636 118.470 116.961 114.709 105.616 Residential ................................................................................................... 123.728 101.534 80.436 92.110 85.698 82.692 79.154 74.201 Change in private inventories........................................................................... .................. .................. .................. .................. .................. .................. .................. .................. Exports of goods and services ........................................................................ 119.937 130.068 138.111 135.189 136.880 140.908 141.943 132.713 Imports of goods and services ........................................................................ 130.815 133.654 129.038 133.254 132.991 130.509 129.367 123.283 Government consumption expenditures and gross investment................... 114.497 116.871 120.250 117.879 118.443 119.594 121.288 121.674 Federal ............................................................................................................. 128.019 130.078 137.913 131.610 133.488 135.628 140.080 142.457 State and local ................................................................................................. 107.642 110.167 111.394 110.914 110.844 111.517 111.891 111.326 Addenda: Final sales of domestic product ....................................................................... 115.254 118.062 119.677 119.133 119.397 120.679 120.273 118.357 Gross domestic purchases .............................................................................. 116.748 118.343 118.033 118.700 118.726 118.694 118.255 116.457 Final sales to domestic purchasers.................................................................. 116.948 118.995 118.971 119.427 119.461 119.853 119.173 117.397 Gross national product..................................................................................... 115.284 117.795 119.342 119.302 119.329 119.950 119.901 118.190 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 2006 2007 2008 r 2007 IV 2008 I II III IV r Gross domestic product .................................................................... 116.676 119.819 122.500 120.826 121.613 121.951 123.134 123.302 Personal consumption expenditures (PCE) .................................................... 114.675 117.659 121.596 119.221 120.283 121.544 123.041 121.514 Durable goods.................................................................................................. 88.772 87.154 86.071 86.598 86.581 86.237 86.110 85.357 Nondurable goods............................................................................................ 114.984 118.407 124.666 121.092 123.059 125.021 128.129 122.455 Services ........................................................................................................... 120.752 124.712 128.752 126.253 127.133 128.450 129.538 129.885 Gross private domestic investment ................................................................. 116.102 117.735 118.509 117.960 117.815 117.926 118.510 119.786 Fixed investment .............................................................................................. 116.380 117.995 118.727 118.189 118.117 118.353 119.037 119.400 Nonresidential .............................................................................................. 107.277 108.739 110.513 109.015 109.177 109.788 110.913 112.174 Structures ................................................................................................. 151.822 157.662 163.298 159.138 160.182 161.496 164.285 167.229 Equipment and software........................................................................... 94.594 94.870 95.485 94.798 94.700 95.101 95.710 96.431 Residential ................................................................................................... 136.897 138.884 135.587 138.803 137.900 136.687 135.535 132.226 Change in private inventories........................................................................... .................. .................. .................. ................. .................. .................. .................. ................. Exports of goods and services ........................................................................ 112.618 116.586 122.788 118.794 121.397 124.560 126.592 118.601 Imports of goods and services ........................................................................ 115.932 120.168 132.698 124.907 128.722 137.136 140.189 124.747 Government consumption expenditures and gross investment................... 127.239 132.941 139.234 135.174 137.237 139.588 141.107 139.002 Federal ............................................................................................................. 125.806 130.076 134.289 131.070 132.879 134.553 135.447 134.277 State and local ................................................................................................. 128.109 134.671 142.219 137.649 139.866 142.632 144.540 141.838 Addenda: PCE excluding food and energy....................................................................... 112.129 114.548 117.043 115.512 116.158 116.782 117.481 117.749 Market-based PCE 1 ........................................................................................ 113.167 115.893 119.760 117.371 118.452 119.719 121.348 119.523 1 Market-based PCE excluding food and energy ............................................. 109.715 111.700 113.818 112.439 113.021 113.522 114.228 114.502 Final sales of domestic product ....................................................................... 116.710 119.853 122.528 120.856 121.653 122.008 123.204 123.245 Gross domestic purchases .............................................................................. 117.066 120.294 124.158 121.766 122.821 124.103 125.475 124.232 Final sales to domestic purchasers.................................................................. 117.101 120.329 124.187 121.798 122.863 124.160 125.543 124.181 Gross national product..................................................................................... 116.673 119.815 122.485 120.822 121.601 121.938 123.117 123.286 Implicit price deflators: Gross domestic product ............................................................................... 116.676 119.816 122.422 120.743 121.508 121.890 123.056 123.244 Final sales of domestic product.................................................................... 116.709 119.853 122.520 120.849 121.647 122.002 123.198 123.239 Gross domestic purchases........................................................................... 117.066 120.292 124.084 121.687 122.722 124.045 125.400 124.177 Final sales to domestic purchasers.............................................................. 117.101 120.329 124.181 121.794 122.858 124.156 125.538 124.176 Gross national product ................................................................................. 116.672 119.813 122.407 120.737 121.495 121.876 123.037 123.226 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 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 r Gross domestic product (GDP) .................................................. 2.7 4.0 2.5 3.7 4.5 4.2 4.5 3.7 0.8 1.6 2.5 3.6 2.9 2.8 2.0 1.1 Personal consumption expenditures .................................................... 3.3 3.7 2.7 3.4 3.8 5.0 5.1 4.7 2.5 2.7 2.8 3.6 3.0 3.0 2.8 0.2 Durable goods ....................................................................................... 7.8 8.4 4.4 7.8 8.6 11.3 11.7 7.3 4.3 7.1 5.8 6.3 4.6 4.5 4.8 –4.3 Nondurable goods ................................................................................. 2.7 3.5 2.2 2.6 2.7 4.0 4.6 3.8 2.0 2.5 3.2 3.5 3.4 3.7 2.5 –0.6 Services................................................................................................. 2.8 2.9 2.6 2.9 3.3 4.2 4.0 4.5 2.4 1.9 1.9 3.2 2.6 2.5 2.6 1.5 Gross private domestic investment....................................................... 8.9 13.6 3.1 8.9 12.4 9.8 7.8 5.7 –7.9 –2.6 3.6 9.7 5.8 2.1 –5.4 –6.7 Fixed investment.................................................................................... 8.6 9.3 6.5 9.0 9.2 10.2 8.3 6.5 –3.0 –5.2 3.4 7.3 6.8 1.9 –3.1 –5.0 Nonresidential.................................................................................... 8.7 9.2 10.5 9.3 12.1 11.1 9.2 8.7 –4.2 –9.2 1.0 5.8 7.2 7.5 4.9 1.6 Structures....................................................................................... –0.7 1.8 6.4 5.6 7.3 5.1 –0.4 6.8 –2.3 –17.1 –4.1 1.3 1.3 8.2 12.7 11.2 Equipment and software ................................................................ 12.5 11.9 12.0 10.6 13.8 13.3 12.7 9.4 –4.9 –6.2 2.8 7.4 9.3 7.2 1.7 –3.0 Residential ......................................................................................... 8.2 9.6 –3.2 8.0 1.9 7.6 6.0 0.8 0.4 4.8 8.4 10.0 6.3 –7.1 –17.9 –20.8 Change in private inventories ................................................................ ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ............ ........... ........... ........... Net exports of goods and services ....................................................... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ............ ........... ........... ........... Exports .................................................................................................. 3.2 8.7 10.1 8.4 11.9 2.4 4.3 8.7 –5.4 –2.3 1.3 9.7 7.0 9.1 8.4 6.2 Goods ................................................................................................ 3.3 9.7 11.7 8.8 14.3 2.2 3.8 11.2 –6.1 –4.0 1.8 9.0 7.7 9.9 7.5 6.0 Services............................................................................................. 3.2 6.3 6.3 7.2 5.9 2.9 5.6 2.9 –3.7 1.9 0.0 11.5 5.6 7.2 10.5 6.6 Imports .................................................................................................. 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 6.0 2.2 –3.5 Goods ................................................................................................ 10.1 13.3 9.0 9.3 14.4 11.7 12.4 13.5 –3.2 3.7 4.9 11.3 6.8 6.0 1.7 –4.1 Services............................................................................................. 2.9 5.7 3.3 5.5 9.4 11.4 6.9 11.1 –0.3 2.1 0.0 11.5 1.4 6.0 4.4 0.2 Government consumption expenditures and gross investment ........ –0.9 0.0 0.5 1.0 1.9 1.9 3.9 2.1 3.4 4.4 2.5 1.4 0.4 1.7 2.1 2.9 Federal .................................................................................................. –4.2 –3.7 –2.7 –1.2 –1.0 –1.1 2.2 0.9 3.9 7.0 6.8 4.2 1.2 2.3 1.6 6.0 National defense................................................................................ –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 1.6 2.5 7.2 Nondefense ....................................................................................... –0.7 –1.2 –0.4 –0.7 2.6 0.7 2.8 3.5 3.9 6.3 3.4 1.1 0.6 3.6 –0.2 3.6 State and local....................................................................................... 1.4 2.6 2.6 2.3 3.6 3.6 4.7 2.7 3.2 3.1 0.2 –0.2 –0.1 1.3 2.3 1.1 Addenda: Final sales of domestic product ............................................................. 2.6 3.4 3.0 3.7 4.0 4.2 4.5 3.8 1.6 1.2 2.5 3.3 3.1 2.8 2.4 1.4 Gross domestic purchases.................................................................... 3.2 4.4 2.4 3.8 4.8 5.3 5.3 4.4 0.9 2.2 2.8 4.1 3.0 2.6 1.4 –0.3 Final sales to domestic purchasers ....................................................... 3.2 3.8 2.8 3.8 4.3 5.3 5.4 4.5 1.8 1.8 2.8 3.8 3.1 2.6 1.8 0.0 Gross national product .......................................................................... 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 2.6 2.2 1.3 Real disposable personal income.......................................................... 1.0 2.7 2.8 3.0 3.5 5.8 3.0 4.8 1.9 3.1 2.2 3.6 1.4 3.5 2.8 1.3 Price indexes: Gross domestic purchases ................................................................ 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 3.4 2.8 3.2 Gross domestic purchases excluding food and energy ..................... 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 3.1 2.4 2.2 GDP ................................................................................................... 2.3 2.1 2.0 1.9 1.7 1.1 1.4 2.2 2.4 1.7 2.1 2.9 3.3 3.2 2.7 2.2 GDP excluding food and energy ........................................................ 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 3.2 2.5 2.0 Personal consumption expenditures .................................................. 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 2.6 3.3 r Revised Table 8. Real Gross Domestic Product: Percent Change From Quarter One Year Ago 2005 I II 2006 III IV I II 2007 III IV I II 2008 III IV I II III IV r Gross domestic product (GDP) .................................................. 3.2 2.9 3.0 2.7 3.1 3.2 2.4 2.4 1.3 1.8 2.8 2.3 2.5 2.1 0.7 –0.8 Personal consumption expenditures (PCE).......................................... 3.0 3.3 3.3 2.6 3.2 3.0 2.7 3.2 3.1 2.9 2.9 2.2 1.5 1.3 –0.2 –1.5 Durable goods ....................................................................................... 4.3 6.8 6.2 1.2 5.5 3.0 2.5 6.9 4.6 5.4 5.1 4.2 0.8 –1.1 –5.5 –11.4 Nondurable goods ................................................................................. 3.0 3.6 3.6 3.6 4.1 3.8 3.6 3.2 3.0 2.7 2.4 1.7 0.7 1.2 –0.9 –3.4 Services................................................................................................. 2.7 2.4 2.6 2.4 2.4 2.7 2.2 2.6 2.9 2.6 2.7 2.1 1.9 1.7 1.1 1.1 Gross private domestic investment....................................................... 10.9 4.4 3.5 4.8 4.1 5.4 3.0 –3.9 –7.7 –6.2 –4.1 –3.3 –2.3 –6.6 –7.3 –10.4 Fixed investment.................................................................................... 8.7 7.3 6.4 5.1 5.8 3.3 0.7 –1.8 –4.6 –3.3 –2.3 –1.9 –2.5 –3.6 –4.7 –9.0 Nonresidential.................................................................................... 9.2 8.1 6.6 4.9 7.9 7.9 7.7 6.5 3.5 4.4 5.3 6.4 6.2 4.2 1.6 –5.2 Structures....................................................................................... 4.2 2.3 –1.0 –0.5 1.4 6.4 12.7 12.8 11.7 11.4 12.9 14.5 13.9 13.9 11.3 6.3 Equipment and software ................................................................ 11.0 10.2 9.4 7.0 10.5 8.5 5.9 4.2 0.3 1.6 2.0 2.8 2.7 –0.3 –3.1 –11.0 Residential ......................................................................................... 7.7 6.1 6.0 5.4 2.5 –4.3 –10.8 –15.5 –18.5 –17.3 –17.0 –19.0 –21.3 –21.7 –20.6 –19.4 Change in private inventories ................................................................ ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ............ ........... ........... ........... Net exports of goods and services ....................................................... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ............ ........... ........... ........... Exports .................................................................................................. 6.9 7.5 6.8 7.0 9.0 8.2 9.0 10.1 6.1 7.0 11.7 8.9 10.1 11.0 6.1 –1.8 Goods ................................................................................................ 6.9 8.7 6.8 8.3 11.0 9.0 10.2 9.5 5.6 5.7 10.0 8.7 9.4 11.7 7.3 –3.8 Services............................................................................................. 6.9 4.8 6.6 4.0 4.7 6.2 6.2 11.5 7.3 10.0 15.6 9.3 11.7 9.3 3.5 2.5 Imports .................................................................................................. 9.1 5.5 4.5 4.8 6.6 6.5 7.1 3.8 3.2 2.2 2.2 1.1 –1.0 –1.9 –3.5 –7.5 Goods ................................................................................................ 10.2 6.3 5.2 5.8 6.8 6.7 7.4 3.1 2.9 1.7 1.4 0.9 –1.6 –2.4 –4.1 –8.6 Services............................................................................................. 3.7 1.5 0.8 –0.1 5.6 5.1 5.3 8.0 4.8 4.8 6.5 1.8 2.2 0.6 –0.2 –1.7 Government consumption expenditures and gross investment ........ 0.2 0.1 0.6 0.6 1.6 1.7 1.3 2.1 1.4 2.0 2.6 2.4 2.6 2.6 3.1 3.2 Federal .................................................................................................. 1.2 0.9 1.7 1.0 3.1 2.5 0.6 2.9 –0.4 1.6 2.9 2.3 4.8 4.7 6.3 8.2 National defense................................................................................ 1.3 1.8 2.1 0.8 2.2 1.7 –1.5 4.1 0.4 2.0 4.7 2.7 6.2 5.9 7.7 8.9 Nondefense ....................................................................................... 1.0 –0.9 0.8 1.4 5.1 4.1 4.9 0.5 –2.1 0.8 –0.8 1.5 1.9 2.3 3.3 6.9 State and local....................................................................................... –0.4 –0.3 –0.1 0.3 0.7 1.2 1.7 1.6 2.4 2.3 2.3 2.4 1.4 1.4 1.3 0.4 Addenda: Final sales of domestic product ............................................................. 2.8 3.4 3.5 2.7 3.4 2.8 2.0 2.8 1.8 2.3 3.1 2.5 2.5 2.5 1.2 –0.7 Gross domestic purchases.................................................................... 3.6 2.9 2.8 2.6 3.1 3.2 2.4 1.9 1.1 1.3 1.7 1.4 1.1 0.4 –0.6 –1.9 Final sales to domestic purchasers ....................................................... 3.3 3.3 3.3 2.6 3.4 2.8 2.1 2.2 1.6 1.8 2.0 1.6 1.1 0.8 –0.2 –1.7 Gross national product .......................................................................... 3.2 3.1 3.1 2.8 2.9 3.1 2.1 2.5 1.2 1.6 3.1 2.9 3.0 2.4 0.8 –0.9 Real disposable personal income.......................................................... 1.9 1.9 0.9 0.9 3.4 3.1 4.0 3.6 3.4 2.9 3.1 1.8 0.6 3.3 0.3 0.8 Price indexes: Gross domestic purchases ................................................................ 3.6 3.3 3.9 4.0 3.8 3.9 3.3 2.5 2.7 2.6 2.4 3.3 3.3 3.5 4.1 2.0 Gross domestic purchases excluding food and energy ..................... 3.2 3.0 3.1 3.2 3.0 3.2 3.1 2.9 2.8 2.4 2.3 2.3 2.1 2.2 2.4 2.1 GDP ................................................................................................... 3.3 2.9 3.4 3.5 3.4 3.5 3.2 2.8 2.9 2.8 2.5 2.6 2.3 2.0 2.6 2.0 GDP excluding food and energy ........................................................ 3.3 3.1 3.2 3.3 3.2 3.4 3.2 3.0 2.9 2.5 2.3 2.3 2.0 1.9 2.2 1.7 PCE ................................................................................................... 2.8 2.5 3.2 3.3 3.1 3.3 2.9 1.9 2.3 2.4 2.2 3.5 3.5 3.7 4.3 1.9 PCE excluding food and energy......................................................... 2.3 2.1 2.1 2.2 2.1 2.3 2.5 2.3 2.3 2.1 2.0 2.2 2.2 2.3 2.3 1.9 Market-based PCE 1 .......................................................................... 2.5 2.2 3.1 3.1 2.9 3.1 2.7 1.6 2.1 2.2 2.0 3.3 3.4 3.6 4.5 1.8 1 Market-based PCE excluding food and energy ............................... 1.7 1.7 1.7 1.7 1.6 1.9 2.1 2.0 2.1 1.8 1.6 1.8 1.7 1.9 2.1 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 2006 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 ................................................................................................... 2007 2008 r 2007 2008 IV I II III IV r 13,178.4 725.4 647.1 13,256.6 1,623.9 –163.0 11,795.7 7,433.8 6,028.5 1,405.3 1,014.7 44.3 1,668.5 631.2 926.4 85.4 –8.6 13,807.5 861.7 759.3 13,910.0 1,720.5 –81.4 12,270.9 7,812.3 6,355.7 1,456.6 1,056.2 40.0 1,642.4 664.4 963.2 100.2 –7.9 14,264.6 798.3 665.1 14,397.8 1,832.3 135.8 12,429.7 8,055.1 6,550.1 1,504.9 1,072.4 64.4 1,476.5 682.7 983.1 103.6 –8.1 14,031.2 907.4 742.0 14,196.6 1,758.6 13.9 12,424.1 7,941.0 6,465.5 1,475.5 1,073.8 38.6 1,611.1 688.1 975.3 103.1 –6.7 14,150.8 843.2 705.1 14,289.0 1,778.0 63.4 12,447.6 8,009.7 6,518.0 1,491.7 1,071.7 39.1 1,593.5 662.3 975.1 103.2 –7.1 14,294.5 822.8 708.9 14,408.3 1,803.1 136.6 12,468.6 8,033.5 6,531.3 1,502.2 1,076.9 58.6 1,533.3 683.4 988.5 102.1 –7.7 14,412.8 815.6 688.7 14,539.6 1,898.1 150.2 12,491.4 8,092.9 6,581.8 1,511.1 1,080.5 68.5 1,514.8 656.6 993.8 92.1 –8.0 14,200.3 711.6 557.7 14,354.3 1,850.1 193.0 12,311.2 8,084.1 6,569.4 1,514.7 1,060.6 91.4 1,264.5 728.6 974.9 116.8 –9.6 13,341.4 13,889.0 14,128.8 14,017.4 14,087.4 14,157.8 14,262.6 14,007.3 r Revised Table 10. Personal Income and Its Disposition [Billions of dollars] Seasonally adjusted at annual rates 2006 1 2007 2008 r 2007 2008 IV I II III IV r 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 ................................................................................................... 10,993.9 7,432.6 6,027.2 1,405.3 1,014.7 16.2 998.6 44.3 1,824.8 1,125.4 699.4 1,603.0 925.5 1,353.2 9,640.7 9,570.0 70.7 11,663.2 7,818.6 6,362.0 1,456.6 1,056.2 44.0 1,012.2 40.0 2,000.1 1,214.3 785.8 1,713.3 965.1 1,492.8 10,170.5 10,113.1 57.4 12,102.6 8,055.1 6,550.1 1,504.9 1,072.4 34.6 1,037.9 64.4 2,037.7 1,208.5 829.1 1,869.1 996.0 1,460.6 10,642.1 10,450.7 191.4 11,872.1 7,941.0 6,465.5 1,475.5 1,073.8 47.1 1,026.7 38.6 2,056.2 1,242.7 813.5 1,737.8 975.3 1,520.5 10,351.5 10,309.2 42.4 11,960.5 8,009.7 6,518.0 1,491.7 1,071.7 41.6 1,030.1 39.1 2,054.1 1,224.6 829.5 1,778.1 992.2 1,535.0 10,425.5 10,404.9 20.6 12,152.2 8,033.5 6,531.3 1,502.2 1,076.9 38.0 1,039.0 58.6 2,052.3 1,208.7 843.6 1,926.3 995.4 1,346.1 10,806.0 10,538.2 267.9 12,170.4 8,092.9 6,581.8 1,511.1 1,080.5 32.4 1,048.2 68.5 2,055.7 1,217.4 838.3 1,872.7 1,000.0 1,470.7 10,699.7 10,559.9 139.8 12,127.5 8,084.1 6,569.4 1,514.7 1,060.6 26.3 1,034.2 91.4 1,988.5 1,183.4 805.1 1,899.3 996.4 1,490.4 10,637.1 10,299.7 337.4 Personal saving as a percentage of disposable personal income ................................... Addendum: Disposable personal income, billions of chained (2000) dollars 2 .................................... 0.7 0.6 1.8 0.4 0.2 2.5 1.3 3.2 8,407.0 8,644.0 8,752.6 8,683.1 8,667.9 8,891.0 8,696.4 8,754.2 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 2006 2007 2008 2007 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 ................................ Quarterly rates Quarter one year ago 2008 2008 2008 2008 IV I II III IV I II III IV IV 1,668.5 1,642.4 1,476.5 1,611.1 1,593.5 1,533.3 1,514.8 1,264.5 –1.6 –10.1 –1.1 –3.8 –1.2 –16.5 –21.5 468.9 450.4 366.6 433.5 402.9 406.8 393.5 263.2 –4.0 –18.6 –7.0 1.0 –3.3 –33.1 –39.3 1,199.6 702.1 1,192.0 788.7 1,109.9 832.1 1,177.6 816.4 1,190.6 832.5 1,126.5 846.4 1,121.3 841.1 1,001.2 808.3 –0.6 12.3 –6.9 5.5 1.1 2.0 –5.4 1.7 –0.5 –0.6 –10.7 –3.9 –15.0 –1.0 497.5 403.4 277.8 361.2 358.1 280.0 280.3 192.9 –18.9 –31.1 –0.9 –21.8 0.1 –31.2 –46.6 1,390.3 1,348.7 1,288.9 1,326.9 1,337.0 1,276.5 1,319.6 1,222.6 –3.0 –4.4 0.8 –4.5 3.4 –7.4 –7.9 497.5 892.8 –39.5 1,429.8 403.4 945.3 –51.2 1,399.9 277.8 1,011.1 –49.0 1,338.0 361.2 965.7 –74.1 1,401.0 358.1 978.8 –109.4 1,446.3 280.0 996.5 –154.0 1,430.5 280.3 1,039.4 –90.9 1,410.5 192.9 –18.9 –31.1 –0.9 –21.8 0.1 –31.2 –46.6 1,029.7 5.9 7.0 1.4 1.8 4.3 –0.9 6.6 158.1 .............. ............. .............. ............. .............. .............. ............. 1,064.5 –2.1 –4.4 3.2 –1.1 –1.4 –24.5 –24.0 1,873.7 1,886.3 1,597.3 1,894.3 1,750.9 1,750.0 1,693.7 1,194.5 1,404.8 –39.5 –165.7 1,435.9 –51.2 –192.7 1,230.6 –49.0 –71.7 1,460.9 –74.1 –209.2 1,348.0 –109.4 –48.0 1,343.2 –154.0 –62.7 1,300.1 –90.9 –88.0 0.7 –15.3 –7.6 –0.1 –3.2 –29.5 –36.9 931.2 2.2 –14.3 –7.7 –0.4 –3.2 –28.4 –36.3 158.1 .............. ............. .............. ............. .............. .............. ............. –88.1 .............. ............. .............. ............. .............. .............. ............. 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 2008 2006 2007 2008 2007 IV 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 .......................................................... 2007 2008 I II III 2008 IV I II III IV 1,668.5 1,401.0 462.1 939.0 267.5 438.9 171.4 1,642.4 1,297.8 429.7 868.1 344.7 509.2 164.5 1,476.5 1,090.0 301.9 788.0 386.6 539.4 152.8 1,611.1 1,189.7 370.3 819.5 421.3 553.1 131.8 1,593.5 1,195.1 407.6 787.4 398.5 556.8 158.3 1,533.3 1,159.8 376.6 783.2 373.5 565.7 192.2 1,514.8 1,136.4 301.1 835.3 378.4 555.3 176.9 1,264.5 868.6 122.4 746.2 395.9 479.8 83.9 –26.1 –103.2 –32.4 –70.9 77.2 70.3 –6.9 –165.9 –207.8 –127.8 –80.1 41.9 30.2 –11.7 –17.6 5.4 37.3 –32.1 –22.8 3.7 26.5 –60.2 –35.3 –31.0 –4.2 –25.0 8.9 33.9 –18.5 –23.4 –75.5 52.1 4.9 –10.4 –15.3 –250.3 –267.8 –178.7 –89.1 17.5 –75.5 –93.0 1,834.2 1,566.7 478.8 33.8 445.0 1,087.9 55.6 304.3 115.9 19.2 20.0 14.1 1,835.1 1,490.5 449.9 37.7 412.2 1,040.6 58.5 316.6 127.4 21.7 22.3 13.5 1,548.2 1,161.7 308.9 35.5 273.4 852.7 54.6 239.8 69.0 16.5 18.9 8.1 1,820.2 1,398.9 392.4 36.5 355.9 1,006.5 63.2 292.1 128.3 22.8 22.0 15.4 1,641.5 1,243.1 412.8 35.8 377.1 830.2 46.2 240.5 85.5 18.9 19.2 14.4 1,596.0 1,222.5 383.2 31.0 352.2 839.3 56.7 214.9 54.2 15.1 14.8 6.6 1,602.8 1,224.4 308.8 34.4 274.3 915.6 59.1 272.6 68.4 14.7 12.3 4.0 1,352.6 956.7 130.9 41.0 89.9 825.8 56.3 231.2 67.9 17.2 29.2 7.6 0.9 –76.2 –28.9 3.9 –32.8 –47.3 2.9 12.3 11.5 2.5 2.3 –0.6 –286.9 –328.8 –141.0 –2.2 –138.8 –187.9 –3.9 –76.8 –58.4 –5.2 –3.4 –5.4 –178.7 –155.8 20.4 –0.7 21.2 –176.3 –17.0 –51.6 –42.8 –3.9 –2.8 –1.0 –45.5 –20.6 –29.6 –4.8 –24.9 9.1 10.5 –25.6 –31.3 –3.8 –4.4 –7.8 6.8 1.9 –74.4 3.4 –77.9 76.3 2.4 57.7 14.2 –0.4 –2.5 –2.6 –250.2 –267.7 –177.9 6.6 –184.4 –89.8 –2.8 –41.4 –0.5 2.5 16.9 3.6 8.4 –8.4 62.6 188.4 33.8 77.5 53.8 23.4 107.5 132.3 42.5 91.1 354.7 10.9 –5.9 64.9 189.3 38.5 66.9 66.4 17.5 102.6 132.3 42.7 103.0 284.9 6.1 –23.9 43.3 170.8 37.7 61.3 66.4 5.4 76.5 91.7 24.7 101.9 263.7 11.5 –7.7 64.3 163.8 38.7 33.6 73.8 17.8 80.2 124.5 37.7 117.9 290.9 6.9 –19.9 46.1 155.0 34.8 48.8 60.2 11.1 49.2 112.0 24.4 106.0 252.0 5.9 –27.4 39.3 160.7 40.9 36.6 78.5 4.7 59.4 92.7 24.8 115.0 275.8 5.6 –20.2 52.0 204.2 40.8 92.0 70.8 0.6 92.1 86.2 25.2 103.8 276.6 6.2 –28.0 35.8 163.3 34.2 67.7 56.1 5.3 105.2 75.8 24.4 82.6 250.4 2.5 2.5 2.3 0.9 4.7 –10.6 12.6 –5.9 –4.9 0.0 0.2 11.9 –69.8 –4.8 –18.0 –21.6 –18.5 –0.8 –5.6 0.0 –12.1 –26.1 –40.6 –18.0 –1.1 –21.2 –4.6 –12.2 –18.2 –8.8 –3.9 15.2 –13.6 –6.7 –31.0 –12.5 –13.3 –11.9 –38.9 –1.0 –7.5 –6.8 5.7 6.1 –12.2 18.3 –6.4 10.2 –19.3 0.4 9.0 23.8 –0.3 7.2 12.7 43.5 –0.1 55.4 –7.7 –4.1 32.7 –6.5 0.4 –11.2 0.8 0.6 –7.8 –16.2 –40.9 –6.6 –24.3 –14.7 4.7 13.1 –10.4 –0.8 –21.2 –26.2 267.5 344.7 386.6 421.3 398.5 373.5 378.4 395.9 77.2 41.9 –22.8 –25.0 4.9 17.5 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 2006 2007 2008 2007 IV 2008 I II III r IV 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...................................................................................... 6,863.4 775.2 6,088.3 4,316.8 3,548.2 768.6 591.1 1,180.3 169.6 71.8 939.0 309.3 629.7 474.4 7,075.1 822.3 6,252.8 4,525.3 3,734.2 791.1 611.9 1,115.5 179.4 68.1 868.1 321.1 547.0 503.4 7,170.4 882.4 6,288.0 4,634.6 3,822.5 812.1 622.5 1,031.0 185.4 57.6 788.0 270.7 517.3 508.6 7,135.5 840.7 6,294.8 4,602.7 3,802.8 799.9 619.5 1,072.6 185.4 67.7 819.5 314.7 504.7 533.0 7,119.3 852.6 6,266.7 4,623.0 3,814.8 808.2 617.9 1,025.8 180.5 57.9 787.4 279.8 507.6 494.0 7,153.1 868.5 6,284.6 4,630.8 3,819.1 811.7 625.6 1,028.2 186.7 58.2 783.2 294.0 489.2 514.2 7,260.7 909.8 6,350.9 4,653.6 3,838.8 814.7 628.6 1,068.8 180.9 52.6 835.3 303.7 531.6 498.4 7,148.6 898.7 6,249.9 4,630.9 3,817.2 813.6 617.9 1,001.2 193.5 61.5 746.2 205.3 540.9 527.7 155.3 43.5 8.7 –28.3 13.6 –25.0 33.2 13.2 1,127.4 818.1 –39.5 –149.0 1,091.7 770.7 –51.2 –172.5 901.8 631.0 –49.0 –64.7 1,080.6 765.8 –74.1 –187.0 939.6 659.8 –109.4 –42.8 993.3 699.3 –154.0 –56.1 1,006.5 702.7 –90.9 –80.3 667.7 462.4 158.1 –79.6 6,410.9 789.3 5,621.6 6,235.0 775.4 5,459.6 Billions of chained (2000) dollars 1 Gross value added of nonfinancial corporate business ...................................... Consumption of fixed capital 2 ............................................................................................. Net value added 3 ................................................................................................................ 6,156.4 686.7 5,469.7 6,243.1 716.9 5,526.2 6,326.0 766.7 5,559.3 6,304.4 731.6 5,572.9 6,283.0 744.8 5,538.3 6,375.1 757.5 5,617.7 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........... 1.115 0.701 0.262 0.126 1.133 0.725 0.270 0.132 1.133 0.733 0.276 0.139 1.132 0.730 0.271 0.133 1.133 0.736 0.273 0.136 1.122 0.726 0.272 0.136 1.133 0.726 0.276 0.142 1.147 0.743 0.284 0.144 0.108 0.028 0.109 0.029 0.108 0.029 0.109 0.029 0.108 0.029 0.107 0.029 0.106 0.028 0.109 0.031 0.153 0.050 0.102 0.139 0.051 0.088 0.125 0.043 0.082 0.130 0.050 0.080 0.125 0.045 0.081 0.123 0.046 0.077 0.130 0.047 0.083 0.120 0.033 0.087 r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates for the third quarter of 2008. 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 2006 2007 2008 r 2005 I 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 .............. 2.8 5.4 2.3 –2.2 –0.9 2.9 25.0 2.6 –6.9 3.2 2.0 1.1 3.1 1.0 2.8 2.2 –5.0 –5.1 –1.1 –17.7 2.1 1.7 21.3 18.5 1.9 1.0 9.7 –1.9 2.0 0.8 2006 II III IV I II 3.0 3.6 2.1 6.0 4.6 2.9 8.5 2.9 –1.9 3.7 2.6 4.7 1.0 5.1 7.1 2.5 38.5 2.4 27.7 2.9 3.8 1.3 4.8 2.7 5.3 2.0 11.1 5.9 3.9 0.9 2.6 2.3 –0.6 1.3 –0.8 –3.8 24.6 –31.0 20.2 –10.1 3.2 2.6 4.3 3.1 11.5 37.2 27.8 25.2 3.8 1.1 4.7 2.5 3.1 –26.8 –22.3 3.1 4.8 1.3 6.0 2.9 2007 III IV 0.8 1.5 1.5 1.3 2.3 3.8 –8.8 –9.8 13.7 –19.0 0.4 2.2 7.0 34.2 0.8 1.3 6.9 30.4 0.3 1.4 I 2008 II III IV I II 0.1 –2.5 2.1 –3.9 3.8 –0.1 –5.0 0.1 12.5 –0.9 4.8 10.3 2.7 0.8 4.6 4.8 37.2 4.6 –6.1 5.8 4.8 –0.2 0.9 2.8 9.0 0.0 0.9 4.9 4.0 1.3 2.7 1.7 –2.9 –9.3 –10.1 3.3 17.3 –25.7 –14.2 –33.8 4.4 0.7 1.3 4.0 52.6 23.7 8.2 28.4 4.5 –0.3 0.8 2.7 8.6 8.2 –15.5 –10.7 5.5 –0.7 0.9 2.8 III IV r –0.5 –6.3 –4.2 –19.2 1.5 1.9 –1.0 –13.8 7.3 –62.8 –0.7 –4.5 –1.7 –4.8 –0.5 –6.4 7.1 26.1 –1.9 –8.8 3.2 3.2 3.4 3.4 3.1 2.7 2.5 2.8 2.8 2.4 2.2 2.0 2.4 3.2 2.2 4.0 3.9 4.2 3.7 3.9 2.1 2.7 2.3 3.1 2.7 4.1 3.2 4.2 5.2 2.9 3.7 3.5 3.9 3.9 3.2 3.5 3.6 3.7 2.9 3.4 2.7 3.2 2.9 3.6 3.2 2.8 2.6 2.9 2.9 2.5 2.2 2.6 2.3 0.6 2.5 4.1 3.2 4.2 3.6 2.9 2.0 1.7 2.1 3.3 1.8 1.5 1.8 1.7 2.2 1.9 2.8 2.4 3.0 4.0 2.4 2.6 2.0 2.7 3.5 2.2 1.1 1.5 1.2 4.2 2.2 3.9 3.0 4.1 4.5 2.8 0.5 0.4 0.6 –3.9 1.2 3.6 2.8 2.3 2.6 1.9 2.9 2.6 2.2 2.4 1.8 3.4 3.3 2.2 3.3 1.9 3.9 2.5 2.5 2.2 2.2 3.3 2.5 2.1 2.2 1.6 5.4 4.7 1.6 4.9 1.2 4.1 3.3 2.4 3.2 2.0 3.0 1.8 2.1 1.4 1.8 3.8 3.3 3.0 3.1 2.6 3.1 3.1 2.3 3.1 2.1 0.7 –0.5 1.8 –1.1 1.5 3.8 3.4 2.4 3.5 2.3 3.5 3.6 1.8 3.5 1.2 2.4 2.5 2.1 2.0 1.4 4.2 4.3 2.5 4.4 2.2 3.7 3.6 2.3 3.7 2.1 4.4 4.3 2.2 4.3 1.8 4.7 5.0 2.4 5.6 2.5 –3.8 –4.9 0.9 –5.9 1.0 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 2006-07 annual percent change in real GDP uses prices for 2006 and 2007 as weights, and the 2006-07 annual percent change in GDP prices uses quantities for 2006 and 2007 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.