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NEWS RELEASE
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, THURSDAY, AUGUST 30, 2007
Virginia H. Mannering:
Andrew Hodge:
Recorded message:

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

BEA 07-38

GROSS DOMESTIC PRODUCT: SECOND QUARTER 2007 (PRELIMINARY)
CORPORATE PROFITS: SECOND QUARTER 2007 (PRELIMINARY)
Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 4.0 percent in the second quarter of 2007,
according to preliminary estimates released by the Bureau of Economic Analysis. In the first quarter,
real GDP increased 0.6 percent.
The GDP estimates released today are based on more complete source data than were available for
the advance estimates issued last month. In the advance estimates, the increase in real GDP was 3.4
percent (see "Revisions" on page 3).
The increase in real GDP in the second quarter primarily reflected positive contributions from
personal consumption expenditures (PCE) for services, exports, nonresidential structures, federal
government spending, state and local government spending, and equipment and software that were
partly offset by a negative contribution from residential fixed investment. Imports, which are a
subtraction in the calculation of GDP, decreased.
The acceleration in real GDP growth in the second quarter primarily reflected a downturn in
imports, upturns in federal government spending and in private inventory investment, accelerations in
exports and in nonresidential structures, and a smaller decrease in residential fixed investment that were
partly offset by a notable deceleration in PCE.
Final sales of computers contributed 0.21 percentage point to the second-quarter growth in real
GDP after subtracting 0.01 percentage point from the first-quarter growth. Motor vehicle output
contributed 0.02 percentage point to the second-quarter growth in real GDP after contributing 0.18
percentage point to the first-quarter growth.

NOTE.--Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise
specified. Quarter-to-quarter dollar changes are differences between these published estimates. Percent
changes are calculated from unrounded data and are annualized. “Real” estimates are in chained (2000)
dollars. Price indexes are chain-type measures.
This news release is available on BEA’s Web site at www.bea.gov/newsreleases/rels.htm.
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-2-

.
The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 3.8 percent in the second quarter, 0.1 percentage point less than in the advance estimate; this
index also increased 3.8 percent in the first quarter. Excluding food and energy prices, the price index
for gross domestic purchases increased 1.6 percent in the second quarter, compared with an increase of
3.1 percent in the first.
Real personal consumption expenditures increased 1.4 percent in the second quarter, compared
with an increase of 3.7 percent in the first. Real nonresidential fixed investment increased 11.1 percent,
compared with an increase of 2.1 percent. Nonresidential structures increased 27.7 percent, compared
with an increase of 6.4 percent. Equipment and software increased 4.3 percent, compared with an
increase of 0.3 percent. Real residential fixed investment decreased 11.6 percent, compared with a
decrease of 16.3 percent.
Real exports of goods and services increased 7.6 percent in the second quarter, compared with an
increase of 1.1 percent in the first. Real imports of goods and services decreased 3.2 percent, in contrast
to an increase of 3.9 percent.
Real federal government consumption expenditures and gross investment increased 5.9 percent in
the second quarter, in contrast to a decrease of 6.3 percent in the first. National defense increased 8.6
percent, in contrast to a decrease of 10.8 percent. Nondefense increased 0.5 percent, compared with an
increase of 3.8 percent. Real state and local government consumption expenditures and gross
investment increased 3.0 percent, the same increase as in the first.
The real change in private inventories added 0.21 percentage point to the second-quarter change in
real GDP, after subtracting 0.65 percentage point from the first-quarter change. Private businesses
increased inventories $5.4 billion in the second quarter, following increases of $0.1 billion in the first
quarter and $17.4 billion in the fourth.
Real final sales of domestic product -- GDP less change in private inventories -- increased 3.7
percent in the second quarter, compared with an increase of 1.3 percent in the first.

Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 2.4 percent in the second quarter, compared with an increase of 1.1 percent in the
first.

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-3-

Gross national product
Real gross national product -- the goods and services produced by the labor and property supplied
by U.S. residents -- increased 4.0 percent in the second quarter, compared with an increase of 0.7
percent in the first. GNP includes, and GDP excludes, net receipts of income from the rest of the world,
which increased $0.6 billion in the second quarter after increasing $1.8 billion in the first; in the second
quarter, receipts increased $34.9 billion, and payments increased $34.3 billion.

Current-dollar GDP
Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
6.7 percent, or $222.8 billion, in the second quarter to a level of $13,774.7 billion. In the first quarter,
current-dollar GDP increased 4.9 percent, or $159.6 billion.

Revisions
The preliminary estimate of the second-quarter increase in real GDP is 0.6 percentage point, or
$15.9 billion, more than the advance estimate issued last month. The upward revision to the percentage
change in real GDP primarily reflected upward revisions to nonresidential structures, to equipment and
software investment, to exports, and a downward revision to imports that were partly offset by a
downward revision to residential fixed investment.

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

3.4
6.2
3.9

4.0
6.7
3.8

Corporate Profits
Profits from current production (corporate profits with inventory valuation and capital
consumption adjustments) increased $98.3 billion in the second quarter, compared with an increase of
$16.5 billion in the first quarter. Current-production cash flow (net cash flow with inventory valuation
and capital consumption adjustments) -- the internal funds available to corporations for investment -increased $40.6 billion in the second quarter, compared with an increase of $0.2 billion in the first.

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-4-

Taxes on corporate income increased $39.4 billion in the second quarter, compared with an
increase of $0.1 billion in the first. Profits after tax with inventory valuation and capital consumption
adjustments increased $58.9 billion in the second quarter, compared with an increase of $16.4 billion in
the first. Dividends increased $24.7 billion, compared with an increase of $23.0 billion; currentproduction undistributed profits increased $34.2 billion, in contrast to a decrease of $6.6 billion.
Domestic profits of financial corporations increased $56.7 billion in the second quarter, in contrast
to a decrease of $26.9 billion in the first. Domestic profits of nonfinancial corporations increased $25.3
billion in the second quarter, compared with an increase of $23.2 billion in the first. In the second
quarter, real gross corporate value added increased, and profits per unit of real value added increased.
The increase in profits per unit reflected an increase in unit prices that was partly offset by an increase in
unit labor costs; unit nonlabor costs decreased slightly.
The rest-of-the-world component of profits increased $16.2 billion in the second quarter,
compared with an increase of $20.1 billion in the first. 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 second-quarter
increase was accounted for by a larger increase in receipts than in payments.
Profits before tax increased $120.0 billion in the second quarter, compared with an increase of
$26.6 billion in the first. 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 $7.8 billion in the second quarter (from -$227.9 billion to -$235.7 billion), in
contrast to an increase of $9.1 billion in the first. The inventory valuation adjustment decreased $13.9
billion (from -$40.2 billion to -$54.1 billion), compared with a decrease of $19.2 billion.

*

*

*

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.

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Next release -- September 27, 2007, at 8:30 A.M. EDT for:
Gross Domestic Product: Second Quarter 2007 (Final)
Corporate Profits: Second Quarter 2007 (Final)

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Table 1.—Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
Seasonally adjusted at annual rates
2004

2005

2006

2003
III

2004
IV

I

II

2005
III

IV

I

II

2006
III

IV

I

II

2007
III

IV

Ir

II r

Gross domestic product (GDP) ...................
3.6
3.1
2.9
7.5
2.7
3.0
3.5
3.6
2.5
3.1
2.8
4.5
1.2
4.8
2.4
1.1
2.1
0.6
4.0
Personal consumption expenditures ...........................
3.6
3.2
3.1
5.8
2.3
4.4
2.4
3.5
4.2
2.4
3.5
4.1
1.2
4.4
2.4
2.8
3.9
3.7
1.4
Durable goods ..............................................................
6.3
4.9
3.8 16.7
.7
5.8
1.9
7.8
7.0
2.2 11.3
6.2 –13.0 16.6
.8
5.6
3.9
8.8
1.7
Nondurable goods ........................................................
3.5
3.6
3.6
7.7
1.8
4.6
1.5
3.1
4.9
3.5
3.7
2.5
4.7
4.5
2.3
3.2
4.3
3.0
–.3
Services ........................................................................
3.2
2.7
2.7
2.9
2.8
4.1
3.0
2.9
3.4
1.9
1.8
4.4
2.6
2.1
2.7
2.0
3.7
3.1
2.3
Gross private domestic investment .............................
9.7
5.6
2.7 17.7
9.3
2.1 20.7
8.0
6.4
5.3 –3.9
7.0 13.4
4.3
.6 –4.1 –14.1 –8.2
4.7
Fixed investment ..........................................................
7.3
6.9
2.4 13.6
5.5
–.2 12.9
9.3
7.3
4.0
7.9
8.0
2.3
7.9 –1.9 –4.7 –7.1 –4.4
3.3
Nonresidential ...........................................................
5.8
7.1
6.6
9.4
2.8 –2.6 10.7 12.3 10.3
3.3
5.0
8.6
3.4 13.3
4.2
5.1 –1.4
2.1 11.1
Structures .............................................................
1.3
.5
8.4
–.8 –4.7
–.3
6.1
3.6
–.2
2.1 –1.6 –6.3
4.8 15.0 16.4 10.8
7.4
6.4 27.7
Equipment and software .....................................
7.4
9.6
5.9 13.2
5.6 –3.4 12.4 15.5 14.3
3.8
7.4 14.5
3.1 13.0
–.1
2.9 –4.9
.3
4.3
Residential ................................................................
10.0
6.6 –4.6 22.2 10.6
4.0 16.7
4.2
2.4
5.3 13.1
6.9
.5
–.7 –11.7 –20.4 –17.2 –16.3 –11.6
Change in private inventories ...................................... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Net exports of goods and services ............................. .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Exports ..........................................................................
9.7
6.9
8.4 11.4 20.8 10.0
6.5
3.1 10.0
6.0
9.5
2.1 10.6 11.5
5.7
5.7 14.3
1.1
7.6
Goods .......................................................................
9.0
7.5
9.9
8.8 19.8
7.4
7.2
6.2
7.2
5.8 13.6
1.9 12.6 15.5
6.5
7.4
9.6
.9
7.3
Services ....................................................................
11.5
5.4
4.8 17.5 23.1 16.2
5.1 –3.4 16.8
6.5
.9
2.6
6.3
2.9
3.9
2.0 26.0
1.6
8.3
Imports ..........................................................................
11.3
5.9
5.9
3.7 17.6 12.3 15.2
4.8 13.8
2.1
.8
2.1 16.2
6.9
.9
5.4
1.6
3.9 –3.2
Goods .......................................................................
11.3
6.6
6.0
.6 17.2 11.5 16.6
5.5 14.5
3.2
1.0
2.5 17.3
6.5
1.1
6.2
–.6
4.2 –3.1
Services ....................................................................
11.5
2.3
5.2 21.2 19.6 16.5
8.9
1.8 10.5 –3.5
–.5
0
10.3
9.5
–.1
1.3 14.2
2.3 –3.8
Government consumption expenditures and gross
investment ...................................................................
1.4
.7
1.8
1.5
.7
1.5
1.3
1.6 –1.8
1.3
1.2
3.2 –1.9
4.9
1.0
.8
3.5
–.5
4.1
Federal ..........................................................................
4.2
1.5
2.2
.4
3.1
6.1
2.4
6.2 –4.6
2.8
.7
8.6 –6.2
8.4 –1.6
.9
7.3 –6.3
5.9
National defense ......................................................
5.8
1.5
1.9 –5.3
8.1
8.1
2.0 10.9 –9.7
4.6
2.6 10.0 –11.7
6.8
2.3 –1.5 16.9 –10.8
8.6
Nondefense ..............................................................
1.1
1.3
2.8 12.4 –6.0
2.3
3.2 –2.7
6.5
–.8 –3.0
5.8
5.8 11.9 –8.8
6.0 –10.0
3.8
.5
State and local .............................................................
–.2
.3
1.6
2.1
–.6 –1.0
.7 –1.1
–.1
.4
1.5
0
.7
2.9
2.5
.7
1.3
3.0
3.0
Addenda:
Final sales of domestic product ...................................
3.3
3.3
2.8
6.9
2.1
2.6
2.4
3.8
2.7
2.9
4.8
4.6
–.5
5.4
2.0
1.0
3.5
1.3
3.7
Gross domestic purchases ..........................................
4.1
3.1
2.8
6.6
3.0
3.6
4.8
3.8
3.4
2.6
1.9
4.3
2.5
4.5
1.9
1.3
.8
1.1
2.4
Final sales to domestic purchasers .............................
3.8
3.3
2.7
6.1
2.5
3.2
3.7
4.0
3.6
2.4
3.7
4.5
.8
5.0
1.5
1.2
2.1
1.7
2.2
Gross national product (GNP) .....................................
3.8
3.0
2.8
7.3
3.5
3.6
2.6
3.9
1.5
3.6
2.7
5.1
0
5.2
2.4
.5
2.6
.7
4.0
Disposable personal income ........................................
3.6
1.7
3.1
6.3
1.7
3.7
2.4
2.9
7.5 –3.3
2.5 –1.2
6.6
4.9
.2
1.7
6.2
5.4
.1
Current-dollar measures:
GDP ..........................................................................
6.6
6.4
6.1
9.7
4.9
6.8
7.4
6.0
5.9
7.1
5.5
8.1
4.8
8.4
6.0
3.4
3.8
4.9
6.7
Final sales of domestic product ..............................
6.2
6.6
6.1
9.1
4.4
6.4
6.2
6.1
6.0
6.9
7.5
8.3
3.0
9.0
5.5
3.4
5.2
5.5
6.5
Gross domestic purchases ......................................
7.3
6.9
6.1
9.1
4.9
8.0
9.2
6.7
7.2
6.3
5.5
9.1
6.3
7.3
6.2
3.8
.9
4.9
6.3
Final sales to domestic purchasers ........................
7.0
7.1
6.1
8.5
4.4
7.6
8.0
6.8
7.3
6.1
7.4
9.3
4.6
7.9
5.7
3.7
2.1
5.5
6.1
GNP ..........................................................................
6.8
6.3
6.0
9.6
5.8
7.4
6.5
6.3
4.8
7.6
5.4
8.7
3.5
8.8
6.0
2.8
4.3
4.9
6.7
Disposable personal income ...................................
6.4
4.7
5.9
8.9
3.2
7.3
6.3
4.9 10.8 –1.2
6.0
3.0
9.6
6.7
4.5
4.4
5.2
9.1
4.4
r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates
for the first quarter of 2007.
See ‘‘Explanatory Note’’ at the end of the tables.

Table 2.—Contributions to Percent Change in Real Gross Domestic Product
Seasonally adjusted at annual rates
2004

2005

2006

2003
III

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.

2004
IV

I

II

2005
III

IV

I

II

2006
III

I

II

1.2

4.8

2.4

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

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

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

4.5

IV

2007
III

1.1

IV

2.1

I

II r

3.6

3.1

2.9

7.5

2.7

3.0

3.5

3.6

2.5

3.1

2.8

0.6

4.0

2.56
.53
.08
.35
.10
.71
.31
.14
.03
.24
1.32
.32
.10
.02
.08
.04
.36
.14
.36
1.48
1.10
.56
.03
.53

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

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

4.13
1.39
.46
.67
.26
1.53
.61
.31
.10
.52
1.21
.35
.02
–.03
.05
.03
.28
.13
.40
2.56
2.00
.92
–.02
.95

1.59
.06
–.29
.27
.08
.36
.02
–.02
.06
.30
1.18
.40
.17
.12
.05
.02
.28
.16
.15
1.39
.83
.29
–.12
.41

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

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

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

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

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

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

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

1.03
.14
–.09
.13
.10
–.07
–.14
.07
–.09
.09
.96
.29
.02
.02
.01
.11
.36
–.03
.21
.72
.51
1.12
.82
.31

.33
.08
.14
.12
–.04
.16
.07
.53
.39
.06
.32
–.68
.93
.60
.33
–1.61
–1.33
–.27

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

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

.82
.70
.04
.15
.26
.21 –.16
.04
.32
.20
.14 0
.23
.29
.05
.12
–.14 –.22 –.14
.09
.01 –.13 –.07
.52
.26
.07 –.10
.09
1.08
.55
.21
.89
.56
.56
.37 1.12
–.06 –.05
.28
.37
.62
.60
.08
.75
.51 –.47 –.75 –1.50
1.02 1.81
.95
.64
.55 1.20
.49
.48
.47
.61
.46
.16
–.51 –2.29 –1.70 –2.14
–.07 –1.86 –1.32 –1.92
–.44 –.43 –.37 –.21

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

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

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

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

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

.35
.08
.15
.11
.19
–.34
.11
–.61
.21
–.03
.24
1.42
.86
.58
.28
.56
.46
.11

.27
.29
.27
.21
.06
.03
.02
0
–.02
.01
–.03

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

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

.29
.03
–.25
–.32
.07
.28
.27
.01
.26
–.04
.30

.14
.21
.35
.31
.05
–.14
–.12
–.03
–.07
.07
–.15

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

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

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

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

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

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

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

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

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

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

1.50
1.62
.51
.14
.04

1.36
1.36
.35
.14
.22

1.53
1.36
–.01
–.04
.13

5.00
1.15
1.33
.30
.50

.81
1.63
.22
–.23
.15

.68
2.17
.10
.29
–.28

1.10
1.27
1.11
–.21
–.04

2.06
1.40
.14
.87
.13

1.18
1.41
–.03
–.34
.29

1.32
1.34
.42
.18
.24

1.23
.82
.76
.16
.31

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

2.95
1.39
.48
.51
.05

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

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

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

.79
.41
.40
.35
.04
.01
–.02
.03
.38
.21
.17

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

.36
2.50
–.77
–.74
.16

.06
1.21
–.68
.18
–.01

1.71
1.89
.36
.02
.21

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
2006

Seasonally adjusted
at annual rates

2006

2006

2007

Change from preceding
period

2006

2007

2007
2006

II

III

IV

I

II

II r

III

IV

I

II r

Gross domestic product .......................... 13,194.7 13,155.0 13,266.9 13,392.3 13,551.9 13,774.7 11,319.4 11,306.7 11,336.7 11,395.5 11,412.6 11,523.8

I

II r

316.0

17.1

111.2

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

9,224.5

9,183.9

9,305.7

9,373.7

9,540.5

9,674.4

8,044.1

8,009.3

8,063.8

8,141.2

8,215.7

8,245.2

240.5

74.5

29.5

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

1,048.9
434.2
404.1
210.6

1,042.8
431.8
401.8
209.2

1,053.8
437.6
405.1
211.1

1,056.5
434.8
409.0
212.8

1,074.0
444.5
414.2
215.3

1,074.8
441.5
414.5
218.8

1,180.5
437.3
550.9
213.9

1,170.2
434.3
544.4
212.4

1,186.3
439.5
555.4
213.6

1,197.6
439.6
566.9
215.2

1,223.2
451.5
579.9
216.6

1,228.4
448.3
585.9
220.1

43.1
–14.0
58.7
8.4

25.6
11.9
13.0
1.4

5.2
–3.2
6.0
3.5

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

2,688.0
1,259.3
357.2
340.1
731.4

2,692.2
1,245.9
354.9
363.3
728.1

2,732.4
1,263.2
359.6
373.1
736.5

2,705.4
1,291.7
363.2
306.3
744.3

2,759.4
1,312.2
371.1
320.9
755.1

2,823.7
1,322.7
368.5
374.7
757.8

2,337.7
1,091.8
391.1
198.6
666.2

2,325.6
1,084.4
388.0
199.0
663.4

2,343.9
1,091.4
393.3
199.9
669.5

2,368.8
1,110.7
397.0
197.0
676.5

2,386.6
1,115.3
405.1
198.2
681.7

2,384.5
1,111.4
407.6
196.5
684.5

82.3
41.8
18.5
–.6
27.1

17.8
4.6
8.1
1.2
5.2

–2.1
–3.9
2.5
–1.7
2.8

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

5,487.6
1,381.3
501.6
209.8
291.8
340.6
1,587.7
381.0
1,295.3

5,448.9
1,371.1
496.7
206.6
290.1
338.4
1,578.6
375.7
1,288.4

5,519.5
1,392.5
503.3
211.3
292.1
342.5
1,596.1
384.4
1,300.5

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

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

5,775.9
1,455.4
525.1
223.3
301.8
354.7
1,677.1
398.2
1,365.4

4,545.5
1,148.3
412.9
148.5
265.1
291.2
1,300.3
321.3
1,069.9

4,531.6
1,146.0
410.9
147.0
264.9
289.5
1,298.2
316.8
1,068.6

4,554.0
1,151.0
415.4
150.9
264.7
291.0
1,301.4
321.9
1,071.6

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

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

4,656.7
1,171.6
420.7
153.5
267.2
299.1
1,332.8
331.0
1,099.8

118.2
30.0
–3.6
–4.7
2.0
3.4
42.1
9.7
36.2

35.2
7.1
1.0
.6
.3
1.9
12.7
1.7
10.6

26.0
7.9
.6
.4
.1
3.1
9.6
–1.0
5.7

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

2,209.2

2,239.0

2,224.1

2,152.4

2,117.3

2,140.3

1,919.5

1,948.5

1,928.2

1,856.2

1,816.9

1,837.7

50.2

–39.3

20.8

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

2,162.5
1,397.7
405.1
992.6

2,179.5
1,391.2
400.2
991.1

2,161.3
1,415.2
416.1
999.1

2,132.4
1,417.1
428.4
988.7

2,118.9
1,431.4
439.6
991.8

2,135.7
1,469.1
465.4
1,003.7

1,874.7
1,306.8
268.6
1,050.6

1,892.3
1,303.2
266.4
1,050.1

1,869.6
1,319.4
273.3
1,057.6

1,835.5
1,314.8
278.3
1,044.4

1,815.2
1,321.7
282.6
1,045.3

1,830.0
1,356.9
300.4
1,056.2

43.3
81.0
20.8
58.8

–20.3
6.9
4.3
.9

14.8
35.2
17.8
10.9

480.9
91.3
203.3
186.2
166.7
171.9
173.2
764.8

479.0
91.7
202.6
184.7
168.5
169.5
174.0
788.2

484.9
91.6
204.9
188.4
169.2
172.4
172.6
746.1

480.5
90.4
205.9
184.3
167.5
168.0
172.7
715.3

497.6
96.6
210.5
190.5
168.1
162.9
163.2
687.5

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

46.7
–1.2
47.8

59.5
–6.6
66.1

62.8
–3.7
66.5

20.0
4.7
15.3

–1.6
5.5
–7.0

507.5
595.9
592.1
602.0
599.6
623.3
638.1
41.6
23.7
14.8
96.5 .............. .............. .............. .............. .............. .............. .............. .............. ..............
216.0
213.0
212.1
213.8
215.1
219.9
225.2
7.3
4.8
5.3
194.9
204.8
203.3
207.1
202.6
209.2
213.4
13.3
6.6
4.2
175.9
149.6
152.0
150.9
148.4
147.3
152.8
5.3
–1.1
5.5
152.7
155.2
153.3
156.3
150.9
144.8
134.6
10.1
–6.1
–10.2
167.5
156.2
157.9
155.2
153.7
144.8
148.1
4.3
–8.9
3.3
666.5
569.5
587.5
555.0
529.4
506.3
491.0
–27.6
–23.1
–15.3
4.7
4.8
–.1

40.3
–.9
41.7

51.4
–5.5
57.6

53.9
–2.9
57.6

17.4
3.8
13.6

.1
5.0
–5.8

5.4
4.1
.3

7.1
–.5
7.7

–17.3
1.2
–19.4

5.3
–.9
6.1

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

–762.0

–780.4

–799.1

–705.3

–714.2

–710.8

–624.5

–626.6

–633.8

–597.3

–612.1

–571.1

–6.5

–14.8

41.0

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

1,467.6
1,030.5
437.1

1,447.4
1,016.4
431.0

1,484.5
1,047.8
436.7

1,531.9
1,072.3
459.6

1,549.9
1,084.0
465.9

1,598.4
1,116.1
482.3

1,304.1
927.4
377.1

1,288.4
917.3
371.5

1,306.6
933.7
373.4

1,350.9
955.4
395.6

1,354.7
957.6
397.2

1,379.6
974.6
405.2

100.7
83.9
17.3

3.8
2.2
1.6

24.9
17.0
8.0

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

2,229.6
1,880.4
349.2

2,227.8
1,879.8
348.0

2,283.6
1,933.3
350.3

2,237.2
1,879.9
357.3

2,264.0
1,902.7
361.4

2,309.2
1,945.2
364.0

1,928.6
1,646.9
283.8

1,915.0
1,636.3
281.0

1,940.4
1,661.0
281.9

1,948.2
1,658.7
291.4

1,966.8
1,675.6
293.1

1,950.7
1,662.4
290.2

107.1
93.3
14.0

18.6
16.9
1.7

–16.1
–13.2
–2.9

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

2,523.0

2,512.5

2,536.1

2,571.4

2,608.3

2,670.7

1,981.4

1,976.5

1,980.2

1,997.2

1,994.7

2,014.7

35.1

–2.5

20.0

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

932.5
624.3
544.8
79.5
308.2
268.0
40.2

926.9
620.6
540.0
80.6
306.3
266.7
39.6

932.0
620.7
542.0
78.7
311.3
271.3
40.0

949.7
645.2
561.5
83.7
304.5
264.9
39.6

946.6
634.8
555.7
79.1
311.7
274.0
37.7

969.2
654.5
573.9
80.7
314.7
276.0
38.7

742.3
491.5
416.6
76.6
250.7
212.6
38.5

737.4
488.2
412.5
77.8
249.0
211.4
38.0

739.2
486.4
412.6
75.5
252.7
214.8
38.3

752.3
505.8
427.7
80.1
246.1
208.8
37.8

740.2
491.6
417.4
75.6
248.4
212.5
35.9

750.8
501.8
426.3
77.0
248.7
212.0
36.9

15.8
9.1
4.9
4.9
6.8
4.7
2.3

–12.1
–14.2
–10.3
–4.5
2.3
3.7
–1.9

10.6
10.2
8.9
1.4
.3
–.5
1.0

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

1,590.5
1,276.5
314.0

1,585.7
1,270.0
315.7

1,604.1
1,287.7
316.4

1,621.7
1,300.8
320.9

1,661.7
1,326.7
335.0

1,701.4
1,357.0
344.4

1,239.0
990.9
248.0

1,238.9
988.1
250.7

1,240.9
992.7
248.1

1,244.9
997.5
247.3

1,254.2
1,002.5
251.5

1,263.7
1,007.7
255.8

19.4
13.2
6.2

9.3
5.0
4.2

9.5
5.2
4.3

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

–93.4

–86.5

–99.3

–108.2

–130.7

–135.5 .............. .............. ..............

Addenda:
Final sales of domestic product .......................... 13,148.0 13,095.5 13,204.1 13,372.3 13,553.5 13,770.0 11,275.9 11,252.1 11,279.7 11,375.8 11,411.6 11,516.9
Gross domestic purchases .................................. 13,956.7 13,935.4 14,065.9 14,097.6 14,266.1 14,485.4 11,937.1 11,926.1 11,963.6 11,987.1 12,018.7 12,089.9
Final sales to domestic purchasers .................... 13,910.1 13,875.9 14,003.2 14,077.6 14,267.7 14,480.7 11,893.4 11,871.3 11,906.4 11,967.3 12,017.4 12,082.7

309.0
324.0
317.0

35.8
31.6
50.1

105.3
71.2
65.3

Gross domestic product ................................... 13,194.7 13,155.0 13,266.9 13,392.3 13,551.9 13,774.7 11,319.4 11,306.7 11,336.7 11,395.5 11,412.6 11,523.8
Plus: Income receipts from the rest of the world
691.4
688.9
709.7
733.8
752.2
801.0
595.0
593.2
607.9
628.3
638.2
673.1
Less: Income payments to the rest of the world
633.4
625.0
664.7
673.7
689.0
736.6
543.6
536.7
568.0
575.1
583.2
617.5
Equals: Gross national product ....................... 13,252.7 13,218.9 13,311.9 13,452.4 13,615.1 13,839.1 11,370.1 11,362.5 11,375.9 11,447.8 11,466.7 11,578.6

316.0
112.5
122.8
305.4

17.1
9.9
8.1
18.9

111.2
34.9
34.3
111.9

Net domestic product ........................................... 11,579.5 11,552.2 11,638.1 11,737.9 11,881.0 12,089.2

358.1

9.4

103.0

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 importance or its contribution to the growth rate of more aggregate series. For accurate estimates of the contributions
to percent changes in real gross domestic product, use table 2.
See ‘‘Explanatory Note’’ at the end of the tables.

9,872.8

9,867.0

9,884.7

9,928.3

9,937.7 10,040.7

Table 4.—Price Indexes for Gross Domestic Product and Related Measures: Percent Change From Preceding Period
Seasonally adjusted at annual rates
2004

2005

2006

2003
III

2004
IV

I

II

2005
III

IV

I

II

2006
III

IV

I

II

2007
III

IV

I

II r

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

2.9

3.2

3.2

2.1

2.2

3.7

3.8

2.3

3.2

3.9

2.6

3.5

3.5

3.4

3.5

2.4

1.7

4.2

2.7

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

2.6
–1.8
3.3
3.2

2.9
–.7
3.7
3.4

2.8
–1.3
3.1
3.4

2.4
–4.0
3.9
3.0

1.5
–3.5
.5
3.0

3.5
–.5
5.3
3.5

3.8
.3
6.2
3.4

2.0
–2.5
1.4
3.1

3.0
.2
4.7
2.8

2.2
.1
.3
3.6

3.4
–.4
5.0
3.4

4.3
–2.8
9.5
3.3

2.8
–1.1
.8
4.6

1.7
–1.0
.3
3.0

4.3
–.7
8.6
3.2

2.6
–1.3
2.8
3.2

–.9
–2.7
–7.9
3.0

3.5
–1.9
5.0
3.8

4.2
–1.4
10.0
2.6

Gross private domestic investment .............................
3.4
4.2
3.5
1.3
3.5
4.1
4.7
3.9
3.9
5.2
2.8
4.0
5.8
4.0
2.5
1.6
2.2
2.0
–.2
Fixed investment ..........................................................
3.4
4.3
3.5
1.3
3.5
4.1
4.7
3.9
3.9
5.3
2.9
4.2
6.0
3.9
2.4
1.5
2.0
1.9
–.1
Nonresidential ...........................................................
1.3
2.9
3.1
.7
1.4
1.1
2.4
1.3
2.5
4.5
2.4
1.6
4.6
3.9
2.8
1.9
2.0
1.9
–.1
Structures .............................................................
6.2 11.7 11.7
2.3
4.2
6.8
7.6 10.1 12.0 12.8
8.7 13.8 17.6 13.0 10.7
5.6
4.6
4.1 –1.5
Equipment and software .....................................
–.3
–.1
0
.1
.4
–.8
.7 –1.7
–.6
1.8
.3 –2.5
.2
.6
–.2
.4
.8
1.0
.6
Residential ................................................................
7.3
6.7
4.4
2.6
7.7
9.8
8.8
8.5
6.2
6.6
3.6
8.7
8.5
3.9
1.8
.8
2.1
2.0
–.1
Change in private inventories ...................................... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Net exports of goods and services ............................. .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Exports ..........................................................................
3.5
3.6
3.4
.9
3.0
5.5
4.8
1.9
4.2
4.6
3.6
2.5
3.0
2.7
6.0
4.6
–.8
3.6
5.2
Goods .......................................................................
3.7
3.1
3.3
–.7
4.1
6.3
5.2
1.0
3.6
4.3
3.0
1.3
2.3
3.0
6.3
5.2
.1
3.5
4.8
Services ....................................................................
3.2
4.9
3.7
4.7
.7
3.9
3.8
3.8
5.5
5.0
4.9
5.2
4.8
2.2
5.5
3.3 –2.7
3.9
6.1
Imports ..........................................................................
4.9
6.3
4.0
2.6
.4
9.2
7.3
5.3
6.9
2.2
9.7 10.3
4.3 –1.5 10.1
4.7 –9.4
1.0 11.8
Goods .......................................................................
4.9
6.5
4.2
2.5
.5 10.0
7.9
5.0
7.0
2.0 10.1 10.9
4.9 –1.9 10.4
5.3 –10.1
.7 12.8
Services ....................................................................
4.4
5.6
3.1
3.1
0
4.9
4.7
6.7
6.0
3.5
7.7
7.5
1.3
.5
8.4
1.4 –5.3
2.3
7.0
Government consumption expenditures and gross
investment ...................................................................
Federal ..........................................................................
National defense ......................................................
Nondefense ..............................................................
State and local .............................................................

4.5
4.7
4.7
4.9
4.3

5.8
4.8
5.3
4.0
6.4

4.9
3.9
4.1
3.5
5.4

2.5
1.0
1.2
.6
3.3

2.2
1.1
1.3
.6
2.9

7.2
11.6
10.6
13.8
4.6

5.0
5.5
5.6
5.2
4.7

4.8
2.5
2.9
1.4
6.2

5.7
2.6
3.1
1.7
7.6

7.5
11.5
12.2
10.1
5.2

4.6
2.3
2.5
1.8
6.1

6.4
3.4
3.5
3.2
8.1

5.0
.8
1.3
–.2
7.6

5.1
9.1
9.3
8.9
2.7

5.7
4.0
4.2
3.5
6.7

3.0
1.3
1.6
.7
4.0

2.1
.5
–.1
1.7
3.1

6.4
5.3
5.0
5.9
7.0

5.6
3.8
4.1
3.4
6.6

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

2.9
3.1
3.1
2.9

3.2
3.7
3.7
3.2

3.2
3.3
3.3
3.1

2.1
2.2
2.2
2.1

2.2
1.9
1.9
2.2

3.7
4.3
4.3
3.7

3.8
4.2
4.2
3.8

2.3
2.8
2.7
2.3

3.2
3.6
3.6
3.2

3.9
3.6
3.6
3.9

2.6
3.5
3.5
2.6

3.5
4.6
4.6
3.5

3.5
3.7
3.7
3.5

3.4
2.7
2.7
3.4

3.5
4.2
4.2
3.5

2.3
2.5
2.5
2.4

1.7
.1
.1
1.7

4.2
3.8
3.8
4.2

2.7
3.8
3.8
2.7

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

2.9
3.1
2.9

3.2
3.6
3.2

3.2
3.3
3.2

2.1
2.3
2.1

2.2
1.9
2.2

3.7
4.3
3.7

3.8
4.2
3.8

2.3
2.7
2.3

3.2
3.7
3.2

3.9
3.6
3.9

2.6
3.6
2.6

3.5
4.6
3.5

3.5
3.7
3.5

3.4
2.7
3.4

3.5
4.2
3.5

2.4
2.5
2.4

1.7
.1
1.7

4.2
3.8
4.2

2.7
3.8
2.7

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

Table 5.—Real Gross Domestic Product, Quantity Indexes
[Index numbers, 2000=100]
Seasonally adjusted
2004

2005

2006

2006
II

2007

III

IV

I

II r

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

108.748

112.086

115.304

115.175

115.481

116.080

116.254

117.387

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

112.197
125.652
111.833
109.726

115.791
131.748
115.828
112.687

119.359
136.735
120.051
115.696

118.843
135.542
119.434
115.341

119.652
137.413
120.370
115.911

120.801
138.720
121.650
116.969

121.906
141.680
122.563
117.865

122.343
142.291
122.458
118.527

Gross private domestic investment ...........................................................................................
102.003
107.709
110.607
112.274
111.106
106.955
104.690
105.890
Fixed investment ........................................................................................................................
102.012
109.080
111.657
112.705
111.354
109.325
108.113
108.993
Nonresidential ........................................................................................................................
92.873
99.490
106.062
105.770
107.090
106.711
107.277
110.128
Structures ...........................................................................................................................
78.760
79.127
85.770
85.063
87.270
88.849
90.241
95.928
Equipment and software ...................................................................................................
98.505
107.935
114.332
114.276
115.100
113.662
113.753
114.945
Residential ..............................................................................................................................
125.343
133.608
127.433
131.465
124.190
118.462
113.301
109.873
Change in private inventories .................................................................................................... .................... .................... .................... .................... .................... .................... .................... ....................
Exports of goods and services ..................................................................................................

102.723

109.775

118.957

117.528

119.182

123.222

123.568

125.846

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

116.546

123.425

130.683

129.764

131.483

132.014

133.272

132.182

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

112.210
123.693
106.384

113.050
125.524
106.721

115.092
128.255
108.418

114.807
127.414
108.407

115.022
127.708
108.584

116.007
129.977
108.935

115.865
127.886
109.748

117.026
129.727
110.574

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

108.804
110.444
110.505
109.031

112.360
113.894
114.166
112.265

115.526
117.071
117.292
115.363

115.282
116.963
117.074
115.286

115.565
117.331
117.421
115.422

116.550
117.562
118.021
116.152

116.916
117.871
118.515
116.344

117.995
118.570
119.159
117.479

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
2004

2005

2006

2006
II

III

2007
IV

I

II r

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

109.462

113.005

116.568

116.350

117.030

117.527

118.750

119.538

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

108.392
90.696
107.626
112.929

111.588
90.018
111.561
116.726

114.675
88.857
114.989
120.725

114.670
89.110
115.763
120.252

115.406
88.827
116.576
121.209

115.143
88.213
114.210
122.122

116.129
87.799
115.620
123.252

117.339
87.489
118.418
124.041

Gross private domestic investment ...........................................................................................
106.686
111.155
115.090
114.891
115.335
115.958
116.532
116.478
Fixed investment ........................................................................................................................
106.845
111.404
115.352
115.169
115.592
116.162
116.718
116.691
Nonresidential ........................................................................................................................
100.896
103.778
106.961
106.764
107.267
107.789
108.301
108.277
Structures ...........................................................................................................................
120.912
135.013
150.806
150.294
152.344
154.071
155.637
155.034
Equipment and software ...................................................................................................
94.600
94.527
94.485
94.379
94.470
94.667
94.892
95.029
Residential ..............................................................................................................................
120.587
128.653
134.288
134.137
134.390
135.076
135.736
135.701
Change in private inventories .................................................................................................... .................... .................... .................... .................... .................... .................... .................... ....................
Exports of goods and services ..................................................................................................

104.997

108.803

112.537

112.359

113.641

113.424

114.433

115.879

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

104.526

111.117

115.610

116.339

117.689

114.834

115.114

118.378

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

114.754
115.322
114.431

121.435
120.914
121.758

127.334
125.622
128.370

127.125
125.686
127.998

128.076
126.097
129.271

128.757
126.244
130.272

130.765
127.886
132.499

132.563
129.092
134.648

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

107.338
107.386
105.857

109.670
110.307
107.667

112.130
113.168
109.717

111.871
113.240
109.500

112.519
113.926
110.072

113.052
113.456
110.507

113.730
114.472
111.161

114.106
115.761
111.466

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

109.487
109.235
109.259
109.456

113.040
113.225
113.261
112.999

116.603
116.920
116.956
116.558

116.388
116.850
116.890
116.342

117.065
117.575
117.612
117.022

117.553
117.609
117.636
117.515

118.773
118.702
118.727
118.740

119.566
119.819
119.848
119.529

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

109.462
109.487
109.234
109.259
109.455

113.000
113.040
113.221
113.261
112.994

116.567
116.603
116.919
116.956
116.558

116.347
116.383
116.848
116.886
116.338

117.026
117.061
117.573
117.610
117.019

117.522
117.550
117.606
117.634
117.511

118.745
118.770
118.700
118.725
118.736

119.532
119.563
119.814
119.847
119.523

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

Table 7.—Real Gross Domestic Product: Percent Change From Preceding Year
1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Gross domestic product (GDP) .........................................................
–0.2
3.3
2.7
4.0
2.5
3.7
4.5
4.2
4.5
3.7
0.8
1.6
2.5
3.6
3.1
2.9
Personal consumption expenditures ..................................................................
.2
3.3
3.3
3.7
2.7
3.4
3.8
5.0
5.1
4.7
2.5
2.7
2.8
3.6
3.2
3.1
Durable goods .....................................................................................................
–5.6
5.9
7.8
8.4
4.4
7.8
8.6 11.3 11.7
7.3
4.3
7.1
5.8
6.3
4.9
3.8
Nondurable goods ...............................................................................................
–.2
2.0
2.7
3.5
2.2
2.6
2.7
4.0
4.6
3.8
2.0
2.5
3.2
3.5
3.6
3.6
Services ...............................................................................................................
1.7
3.5
2.8
2.9
2.6
2.9
3.3
4.2
4.0
4.5
2.4
1.9
1.9
3.2
2.7
2.7
Gross private domestic investment ....................................................................
–8.1
8.1
8.9 13.6
3.1
8.9 12.4
9.8
7.8
5.7 –7.9 –2.6
3.6
9.7
5.6
2.7
Fixed investment .................................................................................................
–6.5
5.9
8.6
9.3
6.5
9.0
9.2 10.2
8.3
6.5 –3.0 –5.2
3.4
7.3
6.9
2.4
Nonresidential .................................................................................................
–5.4
3.2
8.7
9.2 10.5
9.3 12.1 11.1
9.2
8.7 –4.2 –9.2
1.0
5.8
7.1
6.6
Structures ................................................................................................... –11.1 –6.0
–.7
1.8
6.4
5.6
7.3
5.1
–.4
6.8 –2.3 –17.1 –4.1
1.3
.5
8.4
Equipment and software ............................................................................
–2.6
7.3 12.5 11.9 12.0 10.6 13.8 13.3 12.7
9.4 –4.9 –6.2
2.8
7.4
9.6
5.9
Residential ......................................................................................................
–9.6 13.8
8.2
9.6 –3.2
8.0
1.9
7.6
6.0
.8
.4
4.8
8.4 10.0
6.6 –4.6
Change in private inventories ............................................................................. .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Net exports of goods and services .................................................................... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Exports ................................................................................................................
6.6
6.9
3.2
8.7 10.1
8.4 11.9
2.4
4.3
8.7 –5.4 –2.3
1.3
9.7
6.9
8.4
Goods ..............................................................................................................
6.9
7.5
3.3
9.7 11.7
8.8 14.3
2.2
3.8 11.2 –6.1 –4.0
1.8
9.0
7.5
9.9
Services ..........................................................................................................
6.0
5.5
3.2
6.3
6.3
7.2
5.9
2.9
5.6
2.9 –3.7
1.9
0
11.5
5.4
4.8
Imports .................................................................................................................
–.6
7.0
8.8 11.9
8.0
8.7 13.6 11.6 11.5 13.1 –2.7
3.4
4.1 11.3
5.9
5.9
Goods ..............................................................................................................
–.1
9.3 10.1 13.3
9.0
9.3 14.4 11.7 12.4 13.5 –3.2
3.7
4.9 11.3
6.6
6.0
Services ..........................................................................................................
–2.6 –2.6
2.9
5.7
3.3
5.5
9.4 11.4
6.9 11.1
–.3
2.1
0
11.5
2.3
5.2
Government consumption expenditures and gross investment ....................
1.1
.5
–.9
0
.5
1.0
1.9
1.9
3.9
2.1
3.4
4.4
2.5
1.4
.7
1.8
Federal ................................................................................................................
–.2 –1.7 –4.2 –3.7 –2.7 –1.2 –1.0 –1.1
2.2
.9
3.9
7.0
6.8
4.2
1.5
2.2
National defense .............................................................................................
–1.1 –5.0 –5.6 –4.9 –3.8 –1.4 –2.8 –2.1
1.9
–.5
3.9
7.4
8.7
5.8
1.5
1.9
Nondefense .....................................................................................................
2.4
6.9
–.7 –1.2
–.4
–.7
2.6
.7
2.8
3.5
3.9
6.3
3.4
1.1
1.3
2.8
State and local ....................................................................................................
2.1
2.2
1.4
2.6
2.6
2.3
3.6
3.6
4.7
2.7
3.2
3.1
.2
–.2
.3
1.6
Addenda:
Final sales of domestic product .........................................................................
.1
3.0
2.6
3.4
3.0
3.7
4.0
4.2
4.5
3.8
1.6
1.2
2.5
3.3
3.3
2.8
Gross domestic purchases .................................................................................
–.8
3.3
3.2
4.4
2.4
3.8
4.8
5.3
5.3
4.4
.9
2.2
2.8
4.1
3.1
2.8
Final sales to domestic purchasers ...................................................................
–.6
3.1
3.2
3.8
2.8
3.8
4.3
5.3
5.4
4.5
1.8
1.8
2.8
3.8
3.3
2.7
Gross national product ........................................................................................
–.3
3.3
2.7
3.9
2.6
3.7
4.4
4.0
4.6
3.7
.8
1.5
2.7
3.8
3.0
2.8
Real disposable personal income ......................................................................
.5
3.4
1.0
2.7
2.8
3.0
3.5
5.8
3.0
4.8
1.9
3.1
2.2
3.6
1.7
3.1
Price indexes:
Gross domestic purchases .............................................................................
3.3
2.3
2.2
2.1
2.1
1.8
1.4
.6
1.6
2.5
2.0
1.6
2.3
3.1
3.7
3.3
Gross domestic purchases excluding food and energy ................................
3.5
2.6
2.3
2.2
2.2
1.5
1.3
1.0
1.4
1.9
1.9
1.9
1.9
2.7
3.1
2.9
GDP ................................................................................................................
3.5
2.3
2.3
2.1
2.0
1.9
1.7
1.1
1.4
2.2
2.4
1.7
2.1
2.9
3.2
3.2
GDP excluding food and energy ...................................................................
3.6
2.5
2.4
2.2
2.1
1.7
1.7
1.2
1.5
2.0
2.1
2.1
1.9
2.7
3.2
3.1
Personal consumption expenditures ..............................................................
3.6
2.9
2.3
2.1
2.1
2.2
1.7
.9
1.7
2.5
2.1
1.4
2.0
2.6
2.9
2.8

Table 8.—Real Gross Domestic Product: Percent Change From Quarter One Year Ago
2003
III

2004
IV

I

II

2005
III

IV

I

II

2006
III

IV

I

II

2007
III

IV

Ir

II r

Gross domestic product (GDP) .........................................................
3.1
3.7
4.1
4.1
3.2
3.1
3.2
3.0
3.2
2.9
3.3
3.2
2.4
2.6
1.5
1.9
Personal consumption expenditures (PCE) .......................................................
3.2
3.4
4.0
3.7
3.2
3.7
3.1
3.4
3.5
2.8
3.3
3.0
2.7
3.4
3.2
2.9
Durable goods .....................................................................................................
6.7
8.3
9.8
6.1
4.0
5.6
4.7
7.0
6.6
1.2
4.6
2.1
2.0
6.6
4.7
5.0
Nondurable goods ...............................................................................................
4.3
3.9
4.1
3.9
2.8
3.5
3.3
3.8
3.6
3.6
3.8
3.5
3.7
3.6
3.2
2.5
Services ...............................................................................................................
2.0
2.2
2.9
3.2
3.2
3.3
2.8
2.5
2.9
2.7
2.7
3.0
2.4
2.6
2.9
2.8
Gross private domestic investment ....................................................................
4.4
7.0
7.9 12.2
9.8
9.1
9.9
3.8
3.6
5.3
5.0
6.2
3.4 –3.6 –6.6 –5.7
Fixed investment .................................................................................................
5.4
7.2
7.3
7.8
6.8
7.2
8.3
7.1
6.8
5.5
6.5
4.0
.8 –1.6 –4.5 –3.3
Nonresidential .................................................................................................
2.9
4.9
4.9
4.9
5.6
7.5
9.1
7.7
6.8
5.1
7.5
7.3
6.4
5.2
2.5
4.1
Structures ...................................................................................................
.1
.2
2.0
0
1.1
2.3
2.9
1.0 –1.6
–.3
2.7
7.1 11.6 12.3 10.2 12.8
Equipment and software ............................................................................
3.9
6.6
6.0
6.7
7.3
9.4 11.4 10.1
9.9
7.1
9.4
7.4
4.6
2.5
–.5
.6
Residential ......................................................................................................
10.6 11.7 11.6 13.2
8.8
6.7
7.0
6.2
6.9
6.4
4.8 –1.5 –8.5 –12.8 –16.5 –16.4
Change in private inventories ............................................................................. .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Net exports of goods and services .................................................................... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... .......... ..........
Exports ................................................................................................................
.1
5.8
9.8 12.0
9.9
7.4
6.4
7.1
6.9
7.0
8.4
7.4
8.4
9.3
6.6
7.1
Goods ..............................................................................................................
–.1
7.1
8.4 10.7 10.0
7.0
6.6
8.1
7.0
8.3 10.7
9.0 10.4
9.7
6.1
6.2
Services ..........................................................................................................
.5
3.0 13.0 15.3
9.8
8.3
6.0
4.9
6.6
4.1
3.2
3.9
3.8
8.3
7.9
9.1
Imports .................................................................................................................
2.8
4.8
9.3 12.1 12.4 11.5
8.8
5.3
4.6
5.1
6.3
6.4
7.2
3.7
2.9
1.9
Goods ..............................................................................................................
3.2
5.3
9.3 11.3 12.6 11.9
9.8
5.9
5.2
5.8
6.6
6.7
7.6
3.2
2.7
1.6
Services ..........................................................................................................
1.0
2.2
9.2 16.4 11.5
9.3
4.3
1.9
1.5
1.4
4.7
4.8
5.2
6.1
4.3
3.3
Government consumption expenditures and gross investment ....................
2.7
1.7
2.5
1.3
1.3
.7
.6
.6
.9
.9
1.8
1.8
1.2
2.5
1.2
1.9
Federal ................................................................................................................
7.3
5.5
7.1
3.0
4.4
2.4
1.6
1.2
1.8
1.3
2.7
2.1
.3
3.7
0
1.8
National defense .............................................................................................
9.1
7.5 10.8
3.1
7.2
2.5
1.7
1.8
1.6
1.1
1.6
1.5 –1.3
5.9
1.2
2.8
Nondefense .....................................................................................................
4.0
1.9
.3
2.8
–.9
2.3
1.5
–.1
2.1
1.9
5.0
3.4
3.4
–.7 –2.5
–.1
State and local ....................................................................................................
.3
–.4
–.1
.3
–.5
–.4
0
.2
.5
.7
1.3
1.5
1.7
1.8
1.9
2.0
Addenda:
Final sales of domestic product .........................................................................
3.2
3.7
4.0
3.5
2.7
2.8
2.9
3.5
3.7
2.9
3.5
2.8
1.9
3.0
1.9
2.4
Gross domestic purchases .................................................................................
3.3
3.6
4.3
4.5
3.8
3.9
3.7
2.9
3.1
2.8
3.3
3.3
2.5
2.1
1.2
1.4
Final sales to domestic purchasers ...................................................................
3.4
3.7
4.2
3.9
3.3
3.6
3.4
3.4
3.5
2.9
3.5
2.9
2.1
2.4
1.6
1.8
Gross national product ........................................................................................
3.3
3.9
4.6
4.2
3.4
2.9
2.9
2.9
3.2
2.8
3.2
3.2
2.0
2.7
1.5
1.9
Real disposable personal income ......................................................................
3.3
3.7
4.2
3.5
2.7
4.1
2.3
2.3
1.3
1.1
3.1
2.6
3.3
3.2
3.4
3.3
Price indexes:
Gross domestic purchases .............................................................................
2.3
2.2
2.2
3.1
3.3
3.7
3.5
3.4
3.8
3.8
3.6
3.8
3.3
2.4
2.6
2.5
Gross domestic purchases excluding food and energy ................................
1.9
1.9
2.1
2.7
2.9
3.1
3.2
3.0
3.0
3.1
2.9
3.1
3.0
2.8
2.8
2.3
GDP ................................................................................................................
2.2
2.2
2.3
2.9
3.0
3.2
3.3
3.0
3.3
3.4
3.2
3.5
3.2
2.7
2.9
2.7
GDP excluding food and energy ...................................................................
1.9
1.9
2.1
2.7
2.9
3.2
3.3
3.1
3.2
3.3
3.1
3.3
3.2
2.9
2.9
2.5
PCE .................................................................................................................
1.9
1.9
2.0
2.8
2.7
3.1
2.8
2.6
3.2
3.2
3.1
3.3
2.9
1.9
2.3
2.3
PCE excluding food and energy ....................................................................
1.3
1.4
1.8
2.1
2.1
2.2
2.3
2.1
2.1
2.2
2.0
2.2
2.4
2.3
2.4
2.0
Market-based PCE 1 .......................................................................................
1.8
1.6
1.6
2.4
2.3
2.8
2.4
2.4
3.1
3.0
2.9
3.2
2.7
1.6
2.2
2.2
Market-based PCE excluding food and energy 1 ..........................................
1.1
1.0
1.3
1.5
1.4
1.6
1.8
1.7
1.7
1.7
1.6
1.9
2.1
2.0
2.2
1.8
r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates
for the first quarter of 2007.
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
2004

2005

2006

2006
II

2007

III

IV

Ir

II r

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

11,685.9

12,433.9

13,194.7

13,155.0

13,266.9

13,392.3

13,551.9

13,774.7

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

437.5
361.3

544.1
475.6

691.4
633.4

688.9
625.0

709.7
664.7

733.8
673.7

752.2
689.0

801.0
736.6

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

11,762.1

12,502.4

13,252.7

13,218.9

13,311.9

13,452.4

13,615.1

13,839.1

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

1,436.1
19.1

1,609.5
5.4

1,615.2
–18.1

1,602.8
–2.6

1,628.8
–2.5

1,654.4
–46.6

1,670.9
–66.3

1,685.5
–81.6

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

10,306.8
6,656.4
5,379.5
1,276.9
911.6
118.4
1,231.2
491.2
819.2
83.0
–4.2

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

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

11,618.7
7,371.9
5,958.4
1,413.5
1,013.5
55.4
1,575.5
611.0
916.2
88.6
–13.4

11,685.6
7,442.5
6,015.8
1,426.7
1,003.6
52.9
1,592.5
594.2
922.9
91.4
–14.5

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

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

12,235.3
7,875.4
6,389.1
1,486.3
1,030.1
61.1
1,646.0
590.3
955.0
92.5
–15.1

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

11,666.8

12,428.6

13,212.8

13,157.5

13,269.4

13,438.9

13,618.2

13,856.3

r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates
for the first quarter of 2007.

Table 10.—Personal Income and Its Disposition
[Billions of dollars]
Seasonally adjusted at annual rates
2004

2005

2006

2006
II

2007

III

Ir

IV

II r

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

9,727.2

10,301.1

10,983.4

10,915.5

11,030.9

11,200.2

11,469.2

11,604.9

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 .............................................................................................

6,671.4
5,394.5
1,276.9
911.6
37.3
874.3
118.4
1,432.1
895.1
537.0
1,422.5

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

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

7,371.9
5,958.4
1,413.5
1,013.5
14.6
998.9
55.4
1,795.7
1,112.7
682.9
1,599.1

7,442.5
6,015.8
1,426.7
1,003.6
18.1
985.5
52.9
1,828.1
1,119.7
708.4
1,630.6

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

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

7,850.4
6,364.1
1,486.3
1,030.1
24.1
1,006.0
61.1
1,924.7
1,143.1
781.6
1,717.0

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

828.8

874.8

927.6

920.1

926.8

944.6

969.8

978.4

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

1,046.3

1,209.1

1,354.3

1,342.6

1,355.2

1,401.0

1,454.7

1,483.0

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

8,680.9

9,092.0

9,629.1

9,572.9

9,675.8

9,799.2

10,014.5

10,121.9

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

8,499.2

9,047.4

9,590.3

9,542.9

9,677.1

9,757.2

9,917.5

10,069.0

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

181.7

44.6

38.8

30.0

–1.4

42.0

97.0

52.8

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

2.1

.5

.4

.3

.4

1.0

.5

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

8,008.9

8,147.9

8,396.9

8,348.6

8,510.7

8,623.9

8,626.5

r

Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates
for the first quarter of 2007.
1. Personal income is also equal to national income less corporate profits with inventory valuation and capital
consumption adjustments, taxes on production and imports less subsidies, contributions for government social insurance, net interest and miscellaneous payments, business current transfer payments, current surplus of government
enterprises, and wage accruals less disbursements, plus personal income receipts on assets, and personal current
transfer receipts.
2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures.

0
8,384.5

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

Percent change from preceding period

Seasonally adjusted
at annual rates
2004

2005

2006

2006
II

2005

2007

III

IV

Quarter one
year ago

Quarterly rates

I

2006

2006

II

2007

III

IV

I

2007
II

II

Corporate profits with inventory valuation and capital
consumption adjustments ...................................................... 1,231.2 1,372.8 1,553.7 1,575.5 1,592.5 1,531.2 1,547.7 1,646.0

11.5

13.2

1.1

–3.8

1.1

6.4

4.5

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

307.4

392.9

491.9

27.8

15.5

2.3

–3.8

0

8.7

6.9

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

923.9
539.5

979.9 1,099.8 1,115.6 1,122.1 1,078.8 1,095.2 1,154.1
601.4 698.9 685.6 711.1 736.4 759.4 784.1

6.1
11.5

12.2
16.2

.6
3.7

–3.9
3.6

1.5
3.1

5.4
3.3

3.5
14.4

384.4

378.6

370.0

–1.5

5.9

–4.4

–16.7

–1.9

10.2

–14.0

Cash flow:
Net cash flow with inventory valuation and capital
consumption adjustments .................................................. 1,181.5 1,235.4 1,290.9 1,314.2 1,308.3 1,251.3 1,251.5 1,292.1
Undistributed profits with inventory valuation and capital
consumption adjustments ..................................................
384.4 378.6 400.9 430.0 411.1 342.4 335.8 370.0
Consumption of fixed capital .................................................
797.1 856.8 890.0 884.2 897.3 908.9 915.7 922.1

4.6

4.5

–.4

–4.4

0

3.2

–1.7

–1.5
7.5

5.9
3.9

–4.4
1.5

–16.7
1.3

–1.9
.7

10.2
.7

–14.0
4.3

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

–43.1

–36.2

453.9

400.9

–36.3

460.0

430.0

–57.7

470.4

452.4

411.1

452.5

342.4

–35.2

335.8

–21.0

–40.2

–54.1 ............ ............ ............ ............ ............ ............ ....................

Equals: Net cash flow ............................................................. 1,224.6 1,271.6 1,327.2 1,371.9 1,343.6 1,272.2 1,291.7 1,346.2

3.8

4.4

–2.1

–5.3

1.5

4.2

–1.9

Addenda:
Profits before tax (without inventory valuation and capital
consumption adjustments) ..................................................... 1,204.7 1,579.6 1,805.8 1,842.3 1,851.4 1,789.2 1,815.8 1,935.8
31.1
14.3
.5
–3.4
1.5
6.6
5.1
Profits after tax (without inventory valuation and capital
consumption adjustments) .....................................................
897.3 1,186.7 1,351.9 1,382.4 1,381.0 1,336.8 1,363.3 1,443.9
32.2
13.9
–.1
–3.2
2.0
5.9
4.5
Inventory valuation adjustment ..................................................
–43.1 –36.2 –36.3 –57.7 –35.2 –21.0 –40.2 –54.1 ............ ............ ............ ............ ............ ............ ....................
Capital consumption adjustment ................................................
69.7 –170.6 –215.8 –209.1 –223.7 –237.0 –227.9 –235.7 ............ ............ ............ ............ ............ ............ ....................

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
2004

2005

2006

2006
II

III

2007
IV

I

2006
2005

2007

2006
III

IV

I

17.0

–61.3

16.5

98.3

26.7 –89.3
–22.3
19.3
48.9 –108.5

–3.7
–26.9
23.2

82.0
56.7
25.3

20.1
10.0
–10.1

16.2
26.0
9.8

Corporate profits with inventory valuation and capital consumption
adjustments ............................................................................................. 1,231.2 1,372.8 1,553.7 1,575.5 1,592.5 1,531.2 1,547.7 1,646.0

141.6

180.9

Domestic industries ............................................................................................ 1,037.8 1,154.6 1,296.4 1,316.1 1,342.8 1,253.5 1,249.8 1,331.8
Financial ............................................................................................................
356.2 405.5 482.2 498.6 476.3 495.6 468.7 525.4
Nonfinancial .......................................................................................................
681.6 749.1 814.3 817.5 866.4 757.9 781.1 806.4

116.8
49.3
67.5

141.8
76.7
65.2

314.1
474.7
160.6

24.8
42.3
17.6

39.1
61.1
21.9

–9.6
5.3
14.9

28.0
12.8
–15.2

Corporate profits with inventory valuation adjustment ........................ 1,161.6 1,543.4 1,769.5 1,784.6 1,816.2 1,768.2 1,775.6 1,881.7

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

193.4
316.4
123.0

218.2
358.7
140.6

257.3
419.8
162.5

259.4
420.6
161.2

249.8
425.9
176.1

277.8
438.7
160.9

297.9
448.7
150.8

II

II

381.8

226.1

31.6

–48.0

7.4

106.1

968.2 1,325.2 1,512.2 1,525.2 1,566.4 1,490.4 1,477.7 1,567.5
348.9 423.6 505.3 521.0 500.3 521.0 493.0 550.6
20.0
26.6
33.8
33.8
35.9
34.8
38.5
39.2
328.9 397.1 471.4 487.3 464.4 486.2 454.5 511.4

357.0
74.7
6.6
68.2

187.0
81.7
7.2
74.3

41.2
–20.7
2.1
–22.9

–76.0
20.7
–1.1
21.8

–12.7
–28.0
3.7
–31.7

89.8
57.6
.7
56.9

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 ............................................................................

619.3
18.6
152.7
38.3
11.9
7.2
–4.9
.3
–7.6
31.3

901.6 1,006.9 1,004.2 1,066.1
28.4
35.7
35.3
37.8
251.2 293.4 298.0 319.5
85.1
95.9
81.8 101.8
17.3
20.3
18.9
19.3
16.0
19.3
19.5
18.3
10.1
7.7
7.8
7.1
–3.7
–1.9
–2.9
–1.6
.1
–1.1
–2.8
–1.4
45.3
51.7
41.4
60.1

969.5
37.8
280.2
107.2
22.5
18.7
6.2
.2
1.3
58.3

984.7
36.4
298.9
113.0
23.3
21.8
9.0
1.3
4.6
52.9

1,016.9
............
............
............
............
............
............
............
............
............

282.3
9.8
98.5
46.8
5.4
8.8
15.0
–4.0
7.7
14.0

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

61.9
2.5
21.5
20.0
.4
–1.2
–.7
1.3
1.4
18.7

–96.6
0
–39.3
5.4
3.2
.4
–.9
1.8
2.7
–1.8

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

32.2
............
............
............
............
............
............
............
............
............

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

114.5
24.2
48.9
25.4
16.0

166.0
27.8
89.8
29.7
18.7

197.5
29.2
110.4
37.6
20.3

216.1
27.9
125.6
41.5
21.2

217.6
30.4
128.7
40.6
17.9

173.0
31.8
85.2
31.7
24.3

185.9
30.1
94.9
41.0
20.0

............
............
............
............
............

51.5
3.6
40.9
4.3
2.7

31.5
1.4
20.6
7.9
1.6

1.5
2.5
3.1
–.9
–3.3

–44.6
1.4
–43.5
–8.9
6.4

12.9
–1.7
9.7
9.3
–4.3

............
............
............
............
............

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

79.2
91.1
14.1
43.9
219.7

95.2
114.4
28.2
74.8
309.5

97.0
124.5
41.9
85.4
329.0

85.4
119.6
45.9
83.2
336.7

118.1
126.9
47.7
81.5
334.5

91.1
132.1
40.0
91.5
296.7

97.8
134.3
39.1
109.5
268.7

............
............
............
............
............

16.0
23.3
14.1
30.9
89.8

1.8
10.1
13.7
10.6
19.5

32.7
7.3
1.8
–1.7
–2.2

–27.0
5.2
–7.7
10.0
–37.8

6.7
2.2
–.9
18.0
–28.0

............
............
............
............
............

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

193.4

218.2

257.3

259.4

249.8

277.8

297.9

314.1

24.8

39.1

–9.6

28.0

20.1

16.2

Domestic industries ............................................................................................
Financial ............................................................................................................
Federal Reserve banks ................................................................................
Other financial ..............................................................................................

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
2004

2005

2006

2006
II

III

2007
IV

Ir

II

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

5,956.4

6,319.4

6,689.4

6,639.8

6,739.1

6,784.5

6,865.0

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

687.4

742.3

772.8

767.6

779.5

789.8

795.7

6,967.7
801.2

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

5,269.0

5,577.1

5,916.6

5,872.2

5,959.6

5,994.7

6,069.3

6,166.5

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

3,865.2
3,159.7
705.5
523.9
879.9
138.9
59.3
681.6
191.0
490.7
367.0
123.7

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

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

4,269.2
3,501.0
768.2
583.9
1,019.1
135.0
66.7
817.5
288.8
528.6
405.2
123.5

4,306.4
3,532.3
774.1
587.3
1,065.9
132.3
67.2
866.4
300.6
565.8
463.2
102.6

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

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

4,557.4
3,753.0
804.5
606.5
1,002.6
136.9
59.2
806.4
322.2
484.2
491.0
–6.9

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 ................................................................................................................................

662.4
471.4
–43.1
62.4

937.8
674.4
–36.2
–152.5

1,043.2
755.0
–36.3
–192.7

1,061.9
773.0
–57.7
–186.7

1,101.4
800.7
–35.2
–199.7

990.4
705.3
–21.0
–211.6

1,024.9
726.3
–40.2
–203.6

1,071.1
748.8
–54.1
–210.5

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

5,652.3

5,806.6

6,012.1

5,965.7

6,039.7

6,076.2

6,089.6

6,158.1

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

651.4
5,001.0

682.4
5,124.2

686.9
5,325.3

683.1
5,282.6

690.4
5,349.2

698.1
5,378.1

701.7
5,387.9

705.2
5,452.9

1.131

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

1.054

1.088

1.113

1.113

1.116

1.117

1.127

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

.684

.702

.718

.716

.713

.731

.738

.740

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

.250
.122
.103
.025

.257
.128
.106
.023

.260
.129
.109
.022

.261
.129
.109
.023

.259
.129
.108
.022

.261
.130
.109
.022

.261
.131
.108
.022

.260
.130
.108
.022

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 ................................................

.121
.034
.087

.129
.045
.084

.135
.048
.087

.137
.048
.089

.143
.050
.094

.125
.047
.078

.128
.049
.079

.131
.052
.079

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

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

Appendix Table A.—Real Gross Domestic Product and Related Aggregates and Price Indexes: Percent Change From Preceding Period
Seasonally adjusted at annual rates
2004

2005

2006

2003
III

2004
IV

I

II

2005
III

IV

I

II

2006
III

IV

I

II

2007
III

IV

I

II r

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

3.6

3.1

2.9

7.5

2.7

3.0

3.5

3.6

2.5

3.1

2.8

4.5

1.2

4.8

2.4

1.1

2.1

0.6

4.0

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

4.7
2.8
5.2

4.3
2.3
3.4

5.0
2.3
–.1

16.2
1.9
14.1

2.5
2.8
2.2

2.1
3.8
1.0

3.4
2.2
11.5

6.6
2.4
1.3

3.7
2.4
–.3

4.2
2.3
4.0

3.9
1.4
7.3

5.8
4.4
1.2

1.5
1.0
1.2

9.6
2.4
4.3

4.6
2.0
–1.4

3.4
2.0
–9.9

1.1
4.4
–7.0

.2
2.1
–6.2

5.6
3.2
3.4

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

4.0
3.6

4.2
3.0

–1.3
3.0

8.9
7.4

–6.5
3.0

8.8
2.8

–6.1
3.8

29.0
2.8

–9.6
3.0

5.4
3.0

4.7
2.7

15.1 –21.6
.6
2.9

6.2
.4

.8
4.1

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

5.4
3.6

35.1
2.9

19.4
2.8

90.4
7.0

20.0 –31.0
2.5
3.3

–6.6
3.6

19.8
3.5

50.1
2.3

39.5
2.8

51.7
2.5

21.8
4.3

34.2
1.0

7.3
4.8

–1.3
.6

36.4
3.8

.6 –34.7 –36.1 149.5 –30.8

18.9

40.8 –10.9

30.6 –30.5
3.6
2.5

17.0 –10.9
4.4
2.9
20.7
2.3

5.1
1.0

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

8.1

5.9

14.0

–3.0

6.0

–8.9

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

4.1

3.6

3.2

11.0

1.6

2.6

5.0

3.8

2.6

3.9

3.2

5.6

.9

5.7

2.4

.8

2.6

.3

5.0

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

2.9
2.7
3.0

3.2
3.2
3.4

3.2
3.1
3.3

2.1
1.7
2.2

2.2
2.1
2.3

3.7
3.5
3.8

3.8
3.4
3.8

2.3
2.8
2.4

3.2
3.1
3.4

3.9
4.1
4.1

2.6
2.6
2.7

3.5
2.9
3.6

3.5
3.5
3.7

3.4
3.4
3.5

3.5
3.2
3.6

2.4
2.6
2.5

1.7
2.4
1.8

4.2
3.3
4.3

2.7
1.6
2.8

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

3.1

3.7

3.3

2.2

1.9

4.3

4.2

2.8

3.6

3.6

3.5

4.6

3.7

2.7

4.2

2.5

.1

3.8

3.8

2.7

3.1

2.9

1.8

2.0

3.5

3.4

2.6

2.8

4.0

2.6

2.7

3.2

3.2

3.2

2.5

2.3

3.1

1.6

3.2

3.9

3.5

2.4

2.0

4.4

4.3

2.9

3.9

3.8

3.7

4.8

3.9

2.9

4.5

2.7

.2

3.9

4.0

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

2.6
2.1
2.3
1.5

2.9
2.2
2.7
1.7

2.8
2.2
2.6
1.9

2.4
1.8
2.2
1.4

1.5
1.6
.9
.9

3.5
2.4
3.2
1.8

3.8
2.7
3.4
1.9

2.0
1.7
1.5
1.1

3.0
2.1
2.9
1.8

2.2
2.6
1.9
2.3

3.4
2.1
3.1
1.5

4.3
1.7
4.3
1.2

2.8
2.4
2.6
1.9

1.7
2.0
1.5
1.8

4.3
2.9
4.3
2.6

2.6
2.3
2.4
2.1

–.9
1.9
–1.6
1.6

3.5
2.4
3.6
2.4

4.2
1.3
4.6
1.1

r
1.
2.
3.

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

17.5 –12.4

27.0
1.9

.8 –12.5 –27.8

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

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