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NEWS RELEASE EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, TUESDAY, DECEMBER 23, 2008 Lisa Mataloni: Andrew Hodge: Recorded message: (202) 606-5304 (GDP) (202) 606-5564 (Profits) (202) 606-5306 BEA 08-59 GROSS DOMESTIC PRODUCT: THIRD QUARTER 2008 (FINAL) CORPORATE PROFITS: THIRD QUARTER 2008 (FINAL) Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- decreased at an annual rate of 0.5 percent in the third quarter of 2008, (that is, from the second quarter to the third quarter), according to final estimates released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 2.8 percent. The GDP estimates released today are based on more complete source data than were available for the preliminary estimates issued last month. In the preliminary estimates, the decrease in real GDP was also 0.5 percent (see "Revisions" on page 3). The decrease in real GDP in the third quarter primarily reflected negative contributions from personal consumption expenditures (PCE), residential fixed investment, and equipment and software that were partly offset by positive contributions from federal government spending, private inventory investment, exports, nonresidential structures, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, decreased. Most of the major components contributed to the downturn in real GDP growth in the third quarter. The largest contributors were a sharp downturn in PCE, a deceleration in exports, a smaller decrease in imports, a deceleration in nonresidential structures, a larger decrease in equipment and software, and a deceleration in state and local government spending. Notable offsets were an upturn in inventory investment and an acceleration in federal government spending. NOTE.--Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified. Quarter-to-quarter dollar changes are differences between these published estimates. Percent changes are calculated from unrounded data and are annualized. “Real” estimates are in chained (2000) dollars. Price indexes are chain-type measures. This news release is available on BEA’s Web site along with the Technical Note and Highlights related to this release. - more - - 2Final sales of computers subtracted 0.01 percentage point from the third-quarter change in real GDP after adding 0.17 percentage point to the second-quarter change. Motor vehicle output added 0.16 percentage point to the third-quarter change in real GDP after subtracting 1.01 percentage points from the second-quarter change. The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 4.5 percent in the third quarter, 0.2 percentage point less than the preliminary estimate; this index increased 4.2 percent in the second quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 2.8 percent in the third quarter, compared with an increase of 2.2 percent in the second. Real personal consumption expenditures decreased 3.8 percent in the third quarter, in contrast to an increase of 1.2 percent in the second. Real nonresidential fixed investment decreased 1.7 percent, in contrast to an increase of 2.5 percent. Nonresidential structures increased 9.7 percent, compared with an increase of 18.5 percent. Equipment and software decreased 7.5 percent, compared with a decrease of 5.0 percent. Real residential fixed investment decreased 16.0 percent, compared with a decrease of 13.3 percent. Real exports of goods and services increased 3.0 percent in the third quarter, compared with an increase of 12.3 percent in the second. Real imports of goods and services decreased 3.5 percent, compared with a decrease of 7.3 percent. Real federal government consumption expenditures and gross investment increased 13.8 percent in the third quarter, compared with an increase of 6.6 percent in the second. National defense increased 18.0 percent, compared with an increase of 7.3 percent. Nondefense increased 5.1 percent, compared with an increase of 5.0 percent. Real state and local government consumption expenditures and gross investment increased 1.3 percent, compared with an increase of 2.5 percent. The real change in private inventories added 0.84 percentage point to the third-quarter change in real GDP, after subtracting 1.50 percentage points from the second-quarter change. Private businesses decreased inventories $29.6 billion in the third quarter, following a decrease of $50.6 billion in the second quarter and a decrease of $10.2 billion in the first. Real final sales of domestic product -- GDP less change in private inventories -- decreased 1.3 percent in the third quarter, in contrast to an increase of 4.4 percent in the second. Gross domestic purchases Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- decreased 1.5 percent in the third quarter, compared with a decrease of 0.1 percent in the second. - more - - 3Gross national product Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- decreased 0.2 percent in the third quarter, in contrast to an increase of 2.1 percent in the second. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which increased $9.9 billion in the third quarter after decreasing $20.2 billion in the second; in the third quarter, receipts decreased $13.3 billion, and payments decreased $23.1 billion. Current-dollar GDP Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 3.4 percent, or $118.3 billion, in the third quarter to a level of $14,412.8 billion. In the second quarter, current-dollar GDP increased 4.1 percent, or $143.7 billion. Revisions The final estimate of the third-quarter decrease in real GDP is the same as the preliminary estimate, primarily reflecting upward revisions to nonresidential structures and to farm inventory investment that were offset by downward revisions to private nonfarm inventory investment and to equipment and software. Advance Preliminary Final (Percent change from preceding quarter) Real GDP................................................ Current-dollar GDP................................ Gross domestic purchases price index… -0.3 3.8 4.8 -0.5 3.6 4.7 -0.5 3.4 4.5 Corporate Profits Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $18.5 billion in the third quarter, compared with a decrease of $60.2 billion in the second quarter. Current-production cash flow (net cash flow with inventory valuation and capital consumption adjustments) -- the internal funds available to corporations for investment -- increased $43.1 billion in the third quarter, in contrast to a decrease of $60.5 billion in the second. Taxes on corporate income decreased $13.3 billion in the third quarter, in contrast to an increase of $3.9 billion in the second. Profits after tax with inventory valuation and capital consumption adjustments decreased $5.2 billion in the third quarter, compared with a decrease of $64.1 billion in the second. Dividends decreased $5.3 billion, in contrast to an increase of $13.9 billion; current-production undistributed profits increased $0.3 billion, in contrast to a decrease of $78.1 billion. - more - - 4Domestic profits of financial corporations decreased $75.5 billion in the third quarter, compared with a decrease of $31.0 billion in the second. Domestic profits of nonfinancial corporations increased $52.1 billion in the third quarter, in contrast to a decrease of $4.2 billion in the second. In the third quarter, real gross value added of nonfinancial corporations increased, and profits per unit of real value added increased. The increase in unit profits reflected an increase in unit prices that was partly offset by an increase in unit nonlabor costs; unit labor costs were unchanged. The rest-of-the-world component of profits increased $4.9 billion in the third quarter, in contrast to a decrease of $25.0 billion in the second. 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 third-quarter increase was accounted for by a smaller decrease in receipts than in payments. Profits before tax with inventory valuation adjustment is the best available measure of industry profits because estimates of the capital consumption adjustment by industry do not exist. This measure reflects depreciation-accounting practices used for federal income tax returns. According to this measure, domestic profits of financial corporations decreased, while domestic profits of nonfinancial corporations increased. The increase in nonfinancial corporations reflected increases in manufacturing and in wholesale trade that were partly offset by decreases in information and in retail trade. Within manufacturing, the largest increase was in petroleum and coal products. Profits before tax decreased $56.3 billion in the third quarter, compared with a decrease of $0.9 billion in the second. 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 $25.3 billion in the third quarter (from -$62.7 billion to -$88.0 billion), compared with a decrease of $14.7 billion in the second. The inventory valuation adjustment increased $63.1 billion (from -$154.0 billion to -$90.9 billion), in contrast to a decrease of $44.6 billion. Effective with this release, chained-dollar gross value added of nonfinancial corporate business was revised beginning with 2005. The current-dollar gross value added is deflated by a revised chaintype price index for nonfinancial industries from the annual revision of the GDP-by-industry accounts that were released in December 2008. * * * BEA’s national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA’s Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. * * * Next release -- January 30, 2009, at 8:30 A.M. EST for: Gross Domestic Product: Fourth Quarter 2008 (Advance) - more - - 5Release dates in 2009 Gross Domestic Product Advance......... Preliminary… Final.............. 2008: IV and 2008 annual January 30 February 27 March 26 2009: I April 29 May 29 June 25 2009: II July 31 August 27 September 30 2009: III October 29 November 24 December 22 ……….. March 26 May 29 June 25 August 27 November 24 September 30 December 22 Corporate Profits Preliminary..... Final............... - more - Table 1. Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period Seasonally adjusted at annual rates 2005 2006 2007 2004 IV 2005 I II 2006 III IV I II 2007 III IV I II 2008 III IV I II III r Gross domestic product (GDP)................ 2.9 2.8 2.0 2.5 3.0 2.6 3.8 1.3 4.8 2.7 0.8 1.5 0.1 4.8 4.8 –0.2 0.9 2.8 –0.5 Personal consumption expenditures.................. 3.0 3.0 2.8 4.2 1.7 3.6 3.7 1.4 4.3 2.8 2.2 3.7 3.9 2.0 2.0 1.0 0.9 1.2 –3.8 Durable goods .................................................... 4.6 4.5 4.8 7.0 0.6 12.1 5.4 –11.7 18.9 1.8 3.5 4.2 9.2 5.0 2.3 0.4 –4.3 –2.8 –14.8 Nondurable goods .............................................. 3.4 3.7 2.5 4.9 2.4 4.2 3.0 4.7 4.4 3.1 2.3 3.1 3.5 1.9 1.2 0.3 –0.4 3.9 –7.1 Services.............................................................. 2.6 2.5 2.6 3.4 1.7 1.7 3.8 2.5 1.6 2.8 2.0 3.9 3.1 1.4 2.4 1.4 2.4 0.7 –0.1 Gross private domestic investment .................... 5.8 2.1 –5.4 6.4 9.1 –5.1 4.0 12.2 6.2 –0.4 –5.3 –15.0 –9.6 6.2 3.5 –11.9 –5.8 –11.5 0.4 Fixed investment ................................................. 6.8 1.9 –3.1 7.3 5.3 7.6 5.3 2.3 8.3 –2.5 –4.8 –7.6 –3.4 3.0 –0.9 –6.2 –5.6 –1.7 –5.3 Nonresidential ................................................. 7.2 7.5 4.9 10.3 3.7 6.3 6.1 3.7 15.9 6.4 5.3 –1.0 3.4 10.3 8.7 3.4 2.4 2.5 –1.7 Structures.................................................... 1.3 8.2 12.7 –0.2 7.5 –1.3 –9.2 1.9 15.6 19.7 14.3 2.5 11.2 18.3 20.5 8.5 8.6 18.5 9.7 Equipment and software ............................. 9.3 7.2 1.7 14.3 2.3 9.2 12.2 4.4 16.3 1.7 2.0 –2.4 0.0 6.9 3.6 1.0 –0.6 –5.0 –7.5 Residential ...................................................... 6.3 –7.1 –17.9 2.4 8.1 9.7 4.0 0.2 –3.6 –16.6 –21.4 –19.5 –16.2 –11.5 –20.6 –27.0 –25.1 –13.3 –16.0 Change in private inventories ............................. ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... Net exports of goods and services..................... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... .......... ........... Exports ............................................................... 7.0 9.1 8.4 10.0 8.1 8.8 0.4 10.9 16.7 5.5 3.5 15.6 0.6 8.8 23.0 4.4 5.1 12.3 3.0 Goods ............................................................. 7.7 9.9 7.5 7.2 7.1 14.5 –0.8 13.2 18.1 6.7 3.6 10.4 2.1 6.9 21.8 5.1 4.5 16.3 3.7 Services .......................................................... 5.6 7.2 10.5 16.8 10.2 –2.8 3.2 5.7 13.4 2.7 3.2 28.6 –2.7 13.3 25.9 2.7 6.4 3.8 1.4 Imports................................................................ 5.9 6.0 2.2 13.8 3.2 0.6 0.8 15.3 10.3 0.1 3.1 2.0 7.7 –3.7 3.0 –2.3 –0.8 –7.3 –3.5 Goods ............................................................. 6.8 6.0 1.7 14.5 5.0 0.7 1.1 17.0 9.0 0.5 3.8 –0.8 8.4 –4.0 2.4 –2.6 –2.0 –7.1 –4.7 Services .......................................................... 1.4 6.0 4.4 10.5 –5.7 0.0 –1.0 6.8 17.7 –2.0 –0.3 18.4 4.2 –2.0 6.3 –0.9 5.5 –8.0 3.3 Government consumption expenditures and 0.4 1.7 2.1 –1.8 –0.2 0.9 3.4 –1.7 3.9 1.2 1.7 1.6 0.9 3.9 3.8 0.8 1.9 3.9 5.8 gross investment .............................................. Federal................................................................ 1.2 2.3 1.6 –4.6 1.1 1.1 9.7 –7.2 10.0 –1.5 1.9 1.8 –3.6 6.7 7.2 –0.5 5.8 6.6 13.8 National defense ............................................. 1.5 1.6 2.5 –9.7 3.1 4.0 12.3 –14.2 8.8 1.9 –0.9 7.0 –5.9 8.5 10.2 –0.9 7.3 7.3 18.0 Nondefense..................................................... 0.6 3.6 –0.2 6.5 –2.7 –4.5 4.4 8.9 12.4 –8.1 7.7 –8.1 1.2 3.1 1.2 0.4 2.9 5.0 5.1 State and local .................................................... –0.1 1.3 2.3 –0.1 –1.0 0.8 –0.1 1.6 0.5 2.9 1.6 1.5 3.6 2.4 1.9 1.6 –0.3 2.5 1.3 Addenda: Final sales of domestic product .......................... 3.1 2.8 2.4 2.7 2.3 4.8 4.1 –0.3 5.1 2.3 0.9 2.9 1.1 4.3 4.0 0.8 0.9 4.4 –1.3 Gross domestic purchases ................................. 3.0 2.6 1.4 3.4 2.5 1.7 3.7 2.0 0.9 0.2 1.2 2.9 2.6 –1.0 0.1 –0.1 –1.5 2.5 4.5 Final sales to domestic purchasers .................... 3.1 2.6 1.8 3.6 1.9 3.7 3.9 1.0 4.8 1.6 1.0 1.5 2.2 2.5 1.9 –0.1 0.1 1.3 –2.3 Gross national product (GNP) ............................ 3.0 2.6 2.2 1.5 4.7 2.2 4.1 0.4 4.9 2.8 0.2 2.0 –0.3 4.4 6.3 1.3 0.1 2.1 –0.2 Disposable personal income............................... 1.4 3.5 2.8 7.5 –4.7 2.5 –1.3 7.5 5.1 1.3 2.3 5.8 4.4 –0.6 3.1 0.6 –0.7 10.7 –8.8 Current-dollar measures: GDP ................................................................ 6.3 6.1 4.8 5.9 7.1 4.8 8.1 5.1 8.6 5.5 3.6 3.7 4.3 6.9 6.3 2.3 3.5 4.1 3.4 Final sales of domestic product ...................... 6.5 6.1 5.2 6.0 6.5 7.0 8.4 3.5 8.8 5.1 3.7 5.2 5.3 6.4 5.6 3.6 3.6 5.6 2.6 Gross domestic purchases ............................. 6.8 6.1 4.2 7.2 6.3 4.8 9.1 6.5 7.5 5.7 3.8 0.7 5.0 6.4 4.9 2.6 3.5 4.3 2.9 Final sales to domestic purchasers................. 4.6 7.3 5.7 6.9 9.4 5.0 7.8 5.3 3.9 2.1 5.9 5.9 4.2 3.9 3.7 5.7 2.2 6.9 6.1 GNP ................................................................ 6.4 5.9 4.9 4.8 8.8 4.4 8.4 4.2 8.7 5.6 3.0 4.1 4.0 6.4 7.9 3.9 2.6 3.4 3.7 Disposable personal income........................... 4.4 6.4 5.5 10.8 –2.4 5.1 3.4 11.1 6.9 4.6 5.4 5.3 7.9 3.0 5.7 4.9 2.9 15.4 –4.2 r Revised See “Explanatory Note” at the end of the tables. Table 2. Contributions to Percent Change in Real Gross Domestic Product Seasonally adjusted at annual rates 2005 2006 2007 2004 IV Percent change at annual rate: Gross domestic product ............................... Percentage points at annual rates: Personal consumption expenditures............... Durable goods................................................ Motor vehicles and parts.............................. Furniture and household equipment ............ Other ............................................................ Nondurable goods ......................................... Food ............................................................. Clothing and shoes ...................................... Gasoline, fuel oil, and other energy goods... Other ............................................................ Services.......................................................... Housing........................................................ Household operation.................................... Electricity and gas .................................... Other household operation....................... Transportation .............................................. Medical care................................................. Recreation.................................................... Other ............................................................ Gross private domestic investment................. Fixed investment............................................ Nonresidential .............................................. Structures................................................. Equipment and software .......................... Information processing equipment and software ............................................ Computers and peripheral equipment ..................................... Software............................................ Other................................................. Industrial equipment ............................. Transportation equipment..................... Other equipment................................... Residential ................................................... Change in private inventories....................... Farm............................................................. Nonfarm ....................................................... Net exports of goods and services.................. Exports ........................................................... Goods .......................................................... Services ....................................................... Imports ........................................................... Goods .......................................................... Services ....................................................... Government consumption expenditures and gross investment ........................................... Federal ............................................................ National defense .......................................... Consumption expenditures....................... Gross investment ..................................... Nondefense.................................................. Consumption expenditures....................... Gross investment ..................................... State and local ............................................... Consumption expenditures....................... Gross investment ..................................... Addenda: Goods .............................................................. Services........................................................... Structures ........................................................ Motor vehicle output ........................................ Final sales of computers.................................. r Revised See “Explanatory Note” at the end of the tables. 2.9 2.8 2.0 2.5 2.13 0.38 –0.01 0.30 0.08 0.69 0.36 0.17 –0.01 0.17 1.06 0.33 0.06 0.04 0.03 0.03 0.40 0.06 0.18 0.95 1.08 0.71 0.03 0.67 2.13 0.36 –0.09 0.35 0.10 0.74 0.38 0.16 –0.05 0.25 1.02 0.34 –0.02 –0.05 0.03 0.05 0.31 0.09 0.24 0.35 0.32 0.77 0.23 0.54 1.95 0.38 0.07 0.24 0.08 0.50 0.18 0.13 0.02 0.17 1.07 0.16 0.07 0.03 0.04 0.05 0.35 0.13 0.31 –0.90 –0.50 0.52 0.40 0.13 2.93 0.57 0.23 0.25 0.09 0.97 0.60 0.23 0.00 0.14 1.39 0.31 0.15 0.15 0.01 0.06 0.40 0.03 0.44 1.04 1.14 1.00 0.00 1.01 0.29 0.32 0.34 0.41 0.10 0.15 0.11 0.06 0.08 0.11 0.10 0.07 0.17 0.09 0.11 0.05 0.37 –0.45 –0.13 0.03 –0.06 –0.03 –0.07 0.06 –0.21 –0.02 0.71 0.96 0.54 0.73 0.17 0.23 –0.93 –0.98 –0.89 –0.82 –0.04 –0.16 2005 I 3.0 II 2006 III IV I II 2007 III IV I II 2.6 3.8 1.3 4.8 2.7 0.8 1.5 0.1 1.25 2.50 0.04 0.95 –0.32 0.53 0.26 0.29 0.11 0.13 0.49 0.83 0.32 0.29 0.15 0.27 –0.09 0.09 0.12 0.17 0.72 0.72 0.34 0.36 0.01 0.02 0.03 0.00 –0.02 0.01 0.02 0.02 0.31 0.37 0.08 0.02 –0.03 –0.08 1.48 –0.86 0.85 1.21 0.37 0.64 0.19 –0.04 0.18 0.68 2.59 0.44 0.15 0.37 –0.08 0.59 0.45 0.00 0.02 0.11 1.55 0.39 0.15 0.12 0.04 0.02 0.48 0.04 0.46 0.69 0.88 0.64 –0.26 0.90 0.94 –1.02 –1.59 0.41 0.17 0.93 0.37 0.35 –0.04 0.25 1.02 0.35 –0.01 –0.04 0.03 0.01 0.39 0.04 0.24 1.98 0.41 0.40 0.05 0.35 2.86 1.37 0.53 0.55 0.29 0.85 0.50 0.18 –0.17 0.33 0.64 0.37 –0.42 –0.42 0.01 0.08 0.37 0.08 0.16 1.15 1.39 1.62 0.42 1.20 1.88 0.14 0.06 0.15 –0.06 0.62 0.43 0.02 –0.11 0.27 1.12 0.31 0.26 0.20 0.06 0.08 0.15 0.04 0.27 –0.02 –0.40 0.71 0.54 0.16 1.52 0.27 0.06 0.20 0.00 0.46 0.10 0.14 0.03 0.19 0.79 0.25 0.10 0.05 0.05 0.03 0.07 0.18 0.15 –0.92 –0.81 0.59 0.42 0.17 2.55 0.33 0.01 0.23 0.09 0.62 0.20 0.12 0.03 0.26 1.61 0.22 0.03 –0.01 0.04 0.10 0.35 0.36 0.55 –2.68 –1.27 –0.09 0.08 –0.18 2.71 0.71 0.30 0.34 0.07 0.71 0.12 0.25 0.13 0.22 1.29 0.12 0.08 0.07 0.00 0.03 0.63 0.06 0.37 –1.63 –0.57 0.33 0.35 –0.02 0.36 0.33 0.61 0.15 0.34 0.04 0.57 2008 II III r IV I 4.8 –0.2 0.9 2.8 –0.5 1.42 1.44 0.40 0.19 0.05 –0.22 0.17 0.26 0.17 0.15 0.40 0.25 0.27 0.03 0.08 0.12 –0.07 –0.01 0.12 0.11 0.62 1.00 0.09 0.08 0.02 0.06 –0.04 0.02 0.06 0.04 0.04 0.06 0.13 0.45 0.08 0.07 0.27 0.28 0.94 0.54 0.47 –0.15 1.07 0.91 0.57 0.65 0.50 0.26 0.67 0.03 –0.03 0.11 –0.06 0.05 0.27 –0.09 –0.05 –0.08 0.59 0.12 0.09 0.01 0.08 –0.02 0.48 –0.01 –0.08 –1.93 –0.97 0.36 0.29 0.07 0.61 –0.33 –0.35 0.05 –0.04 –0.08 0.13 0.08 –0.18 –0.10 1.02 0.05 0.07 0.11 –0.05 0.04 0.59 –0.14 0.40 –0.89 –0.86 0.26 0.30 –0.04 0.87 –0.21 –0.64 0.39 0.04 0.80 0.40 0.28 –0.20 0.33 0.28 0.18 –0.17 –0.19 0.02 –0.08 0.35 0.04 –0.03 –1.74 –0.25 0.27 0.64 –0.37 –2.75 –1.16 –0.83 –0.25 –0.08 –1.57 –0.75 –0.38 –0.45 0.01 –0.03 0.08 –0.33 –0.38 0.05 –0.06 0.31 –0.04 0.02 0.06 –0.79 –0.19 0.36 –0.55 4.8 III 0.23 0.31 0.41 0.31 0.37 0.27 0.30 –0.16 0.11 0.24 –0.06 0.15 0.17 0.07 0.08 0.00 0.22 0.02 0.06 0.12 –0.17 0.40 –0.20 –0.07 0.13 0.04 –1.02 0.14 0.48 –0.40 –0.11 0.63 0.04 –0.14 –0.22 –0.44 0.03 0.85 0.58 –1.07 0.28 0.95 0.97 0.80 0.59 0.49 0.49 0.36 0.49 0.31 –0.37 –2.04 –0.52 –0.25 –1.78 –0.67 –0.12 –0.26 0.15 0.12 0.16 0.03 –0.04 0.24 0.17 0.57 –2.07 0.14 –2.20 0.79 0.89 0.98 –0.09 –0.10 –0.10 0.00 0.09 0.22 0.04 0.10 0.23 0.02 0.19 0.19 0.31 –0.24 0.04 0.07 0.25 0.01 –0.19 1.56 0.19 –0.15 –0.39 1.71 –0.07 –1.26 0.04 1.09 –0.06 0.91 0.10 0.18 –0.11 –2.35 –0.14 –2.18 0.03 –0.17 0.16 0.17 0.03 0.02 0.41 –0.04 –0.07 0.25 0.52 –0.25 0.15 0.02 –0.23 –1.11 –0.24 0.38 0.02 –0.24 –0.26 0.62 0.09 0.59 1.70 0.58 1.27 0.49 0.42 0.09 –1.61 0.01 –1.18 –0.04 –0.43 0.05 0.13 0.02 0.07 0.14 0.14 –0.11 –0.12 –0.02 0.06 –0.15 –0.12 –0.05 –1.40 –1.18 –0.11 –1.41 0.00 0.12 –0.12 –1.52 –0.12 1.33 0.39 1.66 0.28 0.78 0.11 0.87 –0.51 –0.33 –0.51 0.13 0.01 –0.46 0.17 0.09 0.21 0.22 0.19 0.09 –0.10 0.34 –0.21 –0.32 –0.28 0.07 –0.91 –0.60 –1.06 0.47 –0.07 0.14 –0.99 0.33 –1.20 1.66 0.06 1.01 0.15 0.55 –0.09 0.46 –1.25 0.65 –1.14 0.59 –0.11 0.06 0.12 0.10 0.09 –0.04 –0.07 0.06 –1.06 0.69 –0.08 0.77 2.03 2.54 1.66 0.88 –0.51 –0.34 –0.17 0.12 0.16 0.10 –0.20 –0.18 0.08 –1.33 –0.96 0.47 –1.43 0.94 0.53 0.43 0.10 0.40 0.38 0.02 0.10 0.16 0.00 0.01 –0.16 –0.16 –1.12 –0.02 –0.17 0.15 0.77 0.63 0.39 0.24 0.14 0.29 –0.15 0.08 0.04 0.18 –0.05 –0.58 –0.04 –0.52 –1.50 –0.14 –1.36 2.93 1.54 1.39 0.15 1.39 1.14 0.25 –0.16 –0.08 0.08 –0.12 –0.47 0.20 –0.60 0.84 0.01 0.83 1.05 0.40 0.34 0.06 0.65 0.74 –0.09 –0.35 –0.04 0.17 –0.33 0.08 0.08 –0.48 0.14 0.18 –0.45 0.22 0.06 –0.04 –0.08 0.12 0.15 –0.07 –0.11 0.12 –0.03 –0.12 0.03 –0.03 0.01 –0.01 –0.12 0.10 0.11 –0.13 0.02 –0.12 0.01 0.08 0.65 –0.34 0.66 –0.53 0.56 –0.73 0.45 –0.70 0.11 –0.02 0.10 0.20 0.03 0.10 0.07 0.10 –0.01 0.19 0.06 0.09 –0.07 0.10 0.72 0.23 0.66 –0.11 0.39 0.09 0.40 –0.02 –0.01 0.11 0.27 –0.20 0.22 –0.14 0.05 –0.07 0.06 0.34 0.23 0.16 –0.18 0.18 0.32 0.30 0.13 0.12 –0.04 0.32 0.00 0.14 –0.05 0.18 0.17 –0.20 0.15 –0.20 0.03 0.01 0.19 0.18 0.24 0.23 –0.05 –0.06 0.17 –0.26 –0.29 –0.08 –0.21 0.03 0.06 –0.04 0.43 0.20 0.24 0.77 0.75 0.47 0.51 0.40 0.48 0.28 0.45 0.12 0.03 0.07 0.03 0.02 0.03 0.05 –0.01 0.30 0.24 0.17 0.15 0.13 0.09 0.16 –0.04 –0.04 –0.06 0.02 0.01 –0.02 0.02 0.19 0.15 0.04 0.38 0.41 0.34 0.31 0.04 0.06 0.06 0.01 –0.03 0.14 –0.18 0.78 0.47 0.36 0.15 0.21 0.11 0.08 0.03 0.31 0.12 0.19 1.14 0.97 0.85 0.72 0.14 0.12 0.11 0.00 0.17 0.11 0.06 1.18 1.41 –0.03 –0.34 0.29 1.68 2.23 –0.06 0.76 0.07 3.40 1.48 –0.07 0.59 0.16 0.51 1.29 –1.00 0.40 0.04 –0.80 1.26 –0.41 0.10 –0.03 3.08 1.61 0.09 0.13 0.21 0.01 0.79 –0.97 –0.86 0.14 0.29 1.62 –1.03 –0.41 0.05 1.49 1.02 0.32 –1.01 0.17 –1.29 0.87 –0.09 0.16 –0.01 0.07 0.09 0.07 0.04 0.03 0.01 0.00 0.01 –0.01 0.01 –0.03 0.32 0.16 0.08 0.04 0.04 0.08 0.05 0.03 0.16 0.16 0.00 0.40 0.11 0.12 0.11 0.01 0.00 0.00 0.00 0.28 0.20 0.09 1.35 1.25 0.34 0.13 0.15 1.67 1.35 –0.24 –0.03 0.15 0.97 1.61 –0.55 –0.03 0.13 1.12 1.24 0.62 0.15 0.06 1.49 0.59 0.54 0.24 0.22 0.65 0.52 0.15 –1.22 0.21 1.84 1.26 –0.42 –0.34 0.15 0.42 2.19 –1.10 –0.65 0.20 2.71 2.35 –0.30 0.47 0.28 Table 3. Gross Domestic Product and Related Measures: Level and Change From Preceding Period Billions of current dollars Billions of chained (2000) dollars Seasonally adjusted at annual rates 2007 2007 III Gross domestic product .................................. Personal consumption expenditures ..................... Durable goods ...................................................... Motor vehicles and parts..................................... Furniture and household equipment................... Other................................................................... Nondurable goods................................................ Food.................................................................... Clothing and shoes ............................................. Gasoline, fuel oil, and other energy goods ......... Other................................................................... Services................................................................. Housing............................................................... Household operation........................................... Electricity and gas........................................... Other household operation ............................. Transportation ..................................................... Medical care ....................................................... Recreation .......................................................... Other................................................................... Gross private domestic investment........................ Fixed investment .................................................. Nonresidential..................................................... Structures........................................................ Equipment and software ................................. Information processing equipment and software ................................................... Computers and peripheral equipment ..... Software .................................................. Other ....................................................... Industrial equipment.................................... Transportation equipment............................ Other equipment ......................................... Residential .......................................................... Change in private inventories ............................. Farm ................................................................... Nonfarm .............................................................. Net exports of goods and services ........................ Exports .................................................................. Goods ................................................................. Services.............................................................. Imports .................................................................. Goods ................................................................. Services.............................................................. Government consumption expenditures and gross investment .................................................. Federal................................................................... National defense................................................. Consumption expenditures ............................. Gross investment ............................................ Nondefense ........................................................ Consumption expenditures ............................. Gross investment ............................................ State and local ...................................................... Consumption expenditures ............................. Gross investment ............................................ Residual ..................................................................... Addenda: Final sales of domestic product .............................. Gross domestic purchases ..................................... Final sales to domestic purchasers ........................ Gross domestic product ...................................... Plus: Income receipts from the rest of the world .... Less: Income payments to the rest of the world ..... Equals: Gross national product .......................... Seasonally adjusted at annual rates 2007 2008 IV I II III r 2007 III Change from preceding period 2008 IV I II 2008 III r 13,807.5 13,950.6 14,031.2 14,150.8 14,294.5 14,412.8 11,523.9 11,625.7 11,620.7 11,646.0 11,727.4 11,712.4 9,710.2 9,765.6 9,892.7 10,002.3 10,138.0 10,163.5 8,252.8 8,278.5 8,298.2 8,316.1 8,341.3 8,260.6 1,082.8 1,086.2 1,083.0 1,071.0 1,059.3 1,016.2 1,242.4 1,249.4 1,250.6 1,237.0 1,228.3 1,180.1 440.4 437.9 437.8 424.7 400.6 370.7 446.7 443.5 442.6 430.2 407.2 376.9 415.3 417.2 415.3 415.1 423.0 411.2 594.0 600.8 606.6 609.3 629.6 616.2 227.0 231.1 229.9 231.3 235.7 234.3 228.3 232.9 230.8 229.4 230.8 228.1 2,833.0 2,846.6 2,906.2 2,950.7 3,026.2 3,044.6 2,392.6 2,398.6 2,400.2 2,397.9 2,420.7 2,376.3 1,329.1 1,337.9 1,359.8 1,380.5 1,416.3 1,418.4 1,110.5 1,110.9 1,118.7 1,122.4 1,133.6 1,112.3 374.0 375.4 373.2 375.5 382.4 374.4 412.9 416.6 413.2 416.3 427.2 412.2 366.9 367.1 405.3 423.7 441.8 463.6 198.1 197.9 197.0 194.0 190.8 184.1 762.9 766.1 767.9 771.1 785.7 788.2 687.3 690.5 687.9 684.8 695.1 695.5 5,794.4 5,832.8 5,903.5 5,980.6 6,052.5 6,102.7 4,646.2 4,659.8 4,676.1 4,704.3 4,712.1 4,711.3 1,460.9 1,466.9 1,482.7 1,495.1 1,508.8 1,520.9 1,171.7 1,172.5 1,175.9 1,177.3 1,182.3 1,184.5 525.7 526.9 534.3 541.7 554.5 555.8 421.2 421.5 424.0 425.9 421.3 412.4 218.8 218.3 221.1 228.1 236.3 231.9 151.1 151.0 151.2 154.0 149.6 141.2 306.9 308.6 313.2 313.6 318.1 323.9 270.9 271.3 273.9 272.5 273.2 274.6 357.0 360.4 362.9 368.8 372.9 376.8 299.2 300.5 299.9 301.2 298.9 297.2 1,681.1 1,690.2 1,721.9 1,746.6 1,769.3 1,792.9 1,327.8 1,331.4 1,344.5 1,360.8 1,370.3 1,378.9 403.4 405.9 409.7 408.2 412.3 415.8 335.0 336.6 336.3 332.3 333.4 332.1 1,366.3 1,382.5 1,392.0 1,420.2 1,434.6 1,440.4 1,089.9 1,096.0 1,093.9 1,105.0 1,104.0 1,104.6 2,130.4 2,164.0 2,092.3 2,056.1 2,000.9 2,010.9 1,809.7 1,838.7 1,781.3 1,754.7 1,702.0 1,703.7 2,134.0 2,141.0 2,113.4 2,081.7 2,077.0 2,060.6 1,808.5 1,817.0 1,788.2 1,762.4 1,754.9 1,731.1 1,503.8 1,522.9 1,542.1 1,553.6 1,571.9 1,581.2 1,382.9 1,402.9 1,414.7 1,423.1 1,431.8 1,425.7 480.3 492.9 508.7 522.7 549.8 572.4 304.6 313.2 319.7 326.4 340.5 348.4 1,023.5 1,030.0 1,033.4 1,030.9 1,022.1 1,008.8 1,078.9 1,087.5 1,090.1 1,088.6 1,074.7 1,054.0 517.7 93.7 227.3 196.8 180.6 157.2 168.0 630.2 –3.6 1.6 –5.2 –707.8 1,662.4 1,149.2 513.2 2,370.2 1,985.2 385.1 521.1 93.7 229.5 197.9 185.2 154.6 169.2 618.1 23.0 –0.2 23.2 –682.6 1,714.9 1,181.2 533.8 2,397.5 2,005.4 392.1 532.5 95.7 235.6 201.2 179.9 148.4 172.6 571.3 –21.1 5.7 –26.7 –696.7 1,759.7 1,213.7 546.0 2,456.5 2,060.9 395.6 539.6 95.8 241.8 202.0 182.0 142.1 167.3 528.1 –25.6 0.2 –25.8 –705.7 1,820.8 1,256.9 563.9 2,526.5 2,118.0 408.5 550.9 96.8 244.6 209.5 183.2 121.4 166.5 505.0 –76.0 –4.1 –71.9 –718.2 1,923.2 1,343.7 579.5 2,641.4 2,225.5 415.9 13,927.6 14,633.1 14,610.1 13,950.6 898.5 786.3 14,062.8 14,052.3 14,728.0 14,749.0 14,031.2 907.4 742.0 14,196.6 14,176.4 14,856.6 14,882.2 14,150.8 843.2 705.1 14,289.0 14,370.5 15,012.7 15,088.7 14,294.5 822.8 708.9 14,408.3 229.1 223.8 57.3 8.8 43.8 10.3 57.3 20.4 18.5 1.6 21.2 116.3 17.1 7.7 2.8 4.8 5.5 37.6 14.3 34.0 –102.8 –57.0 64.7 34.3 17.9 II III r 81.4 25.2 –8.7 –23.0 20.3 1.4 22.8 11.2 10.9 –3.2 10.3 7.8 5.0 –4.6 –4.4 0.7 –2.3 9.5 1.1 –1.0 –52.7 –7.5 8.7 14.1 –13.9 –15.0 –80.7 –48.2 –30.3 –13.4 –2.7 –44.4 –21.3 –15.0 –6.7 0.4 –0.8 2.2 –8.9 –8.4 1.4 –1.7 8.6 –1.3 0.6 1.7 –23.8 –6.1 7.9 –20.7 544.5 653.9 660.9 677.6 689.6 702.9 695.5 57.3 13.3 –7.4 89.2 .............. .............. .............. .............. .............. .............. .............. .............. .............. 242.5 237.0 239.4 245.1 251.0 252.3 249.5 21.5 1.3 –2.8 212.9 218.0 219.6 223.5 223.6 230.6 233.6 11.3 7.0 3.0 182.2 155.7 159.1 153.1 153.4 152.0 148.6 2.2 –1.4 –3.4 105.5 139.4 137.4 131.9 127.0 108.6 93.6 –20.1 –18.4 –15.0 176.6 148.4 149.2 151.5 146.5 145.3 151.5 –8.1 –1.2 6.2 479.4 453.8 445.3 411.6 383.0 369.6 353.7 –99.1 –13.4 –15.9 –49.7 –2.5 16.0 –8.1 –10.2 –50.6 –29.6 –44.8 –40.4 21.0 –4.2 1.0 –2.5 10.5 6.0 2.4 2.2 4.2 –3.6 –0.2 –45.5 –3.7 19.2 –20.6 –17.9 –55.1 –33.3 –50.0 –37.2 21.8 –707.7 –546.5 –511.8 –484.5 –462.0 –381.3 –353.1 69.2 80.7 28.2 1,968.9 1,425.9 1,466.2 1,482.1 1,500.6 1,544.7 1,556.1 111.1 44.1 11.4 1,374.3 998.7 1,024.1 1,037.0 1,048.6 1,088.9 1,098.7 70.0 40.3 9.8 594.6 426.9 441.8 444.7 451.7 455.8 457.4 40.6 4.1 1.6 2,676.6 1,972.4 1,978.0 1,966.5 1,962.6 1,926.0 1,909.1 41.9 –36.6 –16.9 2,251.0 1,677.7 1,681.1 1,670.2 1,662.0 1,631.6 1,612.2 28.7 –30.4 –19.4 425.6 296.4 298.4 297.8 301.8 295.5 297.9 12.7 –6.3 2.4 2,674.8 2,703.5 2,742.9 2,798.1 2,873.7 2,946.1 979.3 994.0 998.3 1,026.5 1,056.1 1,098.0 662.2 675.6 679.3 699.9 723.3 759.5 580.1 591.9 594.7 613.8 629.0 659.6 82.1 83.7 84.6 86.1 94.3 99.9 317.1 318.3 319.0 326.6 332.9 338.5 276.0 277.2 276.9 284.2 289.2 294.5 41.1 41.2 42.1 42.4 43.7 44.0 1,695.5 1,709.5 1,744.6 1,771.6 1,817.6 1,848.1 1,355.9 1,365.3 1,395.2 1,426.3 1,462.7 1,485.7 339.6 344.2 349.4 345.3 354.9 362.4 .............. .............. .............. .............. .............. .............. 13,811.2 14,515.3 14,519.0 13,807.5 861.7 759.3 13,910.0 2007 14,462.5 15,120.5 15,170.2 14,412.8 815.6 688.7 14,539.6 2,012.1 752.9 502.1 425.8 78.0 250.4 211.7 39.3 1,259.0 1,008.0 250.9 –152.7 2,025.3 762.7 511.0 433.5 79.3 251.2 212.4 39.4 1,262.6 1,010.0 252.5 –158.2 2,029.4 761.7 509.9 431.9 79.9 251.5 212.0 40.2 1,267.5 1,013.9 253.4 –171.9 2,039.1 772.6 518.9 439.7 81.0 253.2 213.5 40.5 1,266.7 1,017.6 249.0 –178.7 2,058.9 785.0 528.1 443.4 87.9 256.3 215.6 41.6 1,274.4 1,020.6 253.7 –191.6 11,523.4 12,066.8 12,066.0 11,523.9 719.9 633.3 11,609.8 11,605.0 12,135.1 12,114.1 11,625.7 749.3 654.1 11,719.9 11,628.0 12,103.2 12,109.8 11,620.7 749.9 611.7 11,758.3 11,653.7 12,105.8 12,113.3 11,646.0 690.9 575.2 11,760.9 11,778.8 12,102.6 12,153.0 11,727.4 667.2 571.6 11,822.2 2,088.1 40.9 19.8 29.2 810.8 11.9 12.4 25.8 550.4 12.1 9.2 22.3 461.5 10.8 3.7 18.1 92.6 1.3 6.9 4.7 259.5 –0.4 3.1 3.2 218.5 –0.5 2.1 2.9 41.8 0.0 1.1 0.2 1,278.7 28.8 7.7 4.3 1,023.4 19.8 3.0 2.8 255.2 9.1 4.7 1.5 –162.8 .............. .............. .............. 11,739.2 12,057.8 12,084.1 11,712.4 653.9 548.5 11,817.3 274.1 162.7 207.5 229.1 97.7 79.2 247.5 125.1 –3.2 39.7 81.4 –23.7 –3.6 61.3 –39.6 –44.8 –68.9 –15.0 –13.3 –23.1 –4.9 Net domestic product.............................................. 12,087.1 12,218.6 12,272.6 12,372.9 12,491.3 12,514.8 10,025.9 10,120.3 10,096.1 10,093.2 10,151.2 10,062.4 176.3 58.0 –88.8 r Revised NOTE. Users are cautioned that particularly for components that exhibit rapid change in prices relative to other prices in the economy, the chained-dollar estimates should not be used to measure the component’s relative impor tance or its contribution to the growth rate of more aggregate series. For accurate estimates of the contributions to percent changes in real gross domestic product, use table 2. See “Explanatory Note” at the end of the tables. Table 4. Price Indexes for Gross Domestic Product and Related Measures: Percent Change From Preceding Period Seasonally adjusted at annual rates 2005 2006 2007 2004 IV 2005 I II 2006 III IV I II 2007 III IV I II 2008 III IV I II III r Gross domestic product (GDP) ............................... 3.3 3.2 2.7 3.2 4.0 2.1 4.1 3.7 3.5 2.7 2.8 2.2 4.1 2.0 1.5 2.8 2.6 1.1 3.9 Personal consumption expenditures ................................. 2.9 2.8 2.6 3.0 2.5 2.5 4.7 3.3 1.8 3.3 3.1 –0.5 3.4 3.6 2.5 4.3 3.6 4.3 5.0 Durable goods .................................................................... –0.8 –1.3 –1.8 0.2 0.4 –0.9 –3.1 –0.9 –0.9 –0.8 –1.3 –2.7 –1.8 –1.6 –1.9 –1.6 –0.1 –1.6 –0.6 Nondurable goods .............................................................. 3.7 3.0 3.0 4.7 1.5 2.0 11.2 2.3 0.3 4.9 4.4 –6.2 5.1 6.4 2.9 8.4 6.7 6.5 10.3 Services.............................................................................. 3.3 3.5 3.3 2.8 3.3 3.5 3.3 4.7 3.0 3.3 3.3 2.8 3.6 3.3 3.1 3.5 2.8 4.2 3.4 Gross private domestic investment.................................... 4.4 4.2 1.4 3.9 4.7 4.0 5.0 5.4 5.2 3.5 1.6 3.3 1.6 –0.3 –0.3 1.3 –0.5 0.4 2.0 Fixed investment................................................................. 4.5 4.2 1.4 3.9 4.7 4.2 5.3 5.7 5.0 3.4 1.5 3.2 1.6 –0.2 –0.4 1.2 –0.2 0.8 2.3 Nonresidential................................................................. 2.9 3.3 1.4 2.5 4.4 2.7 2.0 4.4 4.3 3.3 1.7 2.9 1.3 0.3 –0.6 1.7 0.6 2.3 4.2 Structures.................................................................... 11.8 12.3 3.8 12.0 11.9 10.1 14.8 17.0 14.1 12.0 4.6 6.7 3.4 0.7 0.5 4.5 2.7 3.3 7.1 Equipment and software ............................................. –0.1 0.1 0.3 –0.6 1.8 0.1 –2.3 0.2 0.7 –0.1 0.5 1.2 0.4 0.1 –1.2 0.4 –0.4 1.7 2.6 Residential ...................................................................... 7.2 5.9 1.5 6.2 5.2 6.8 11.0 7.8 6.4 3.7 1.2 3.9 2.2 –1.3 0.3 0.0 –2.6 –3.5 –3.3 Change in private inventories ............................................. ......... .......... .......... .......... .......... .......... .......... ......... .......... .......... .......... .......... .......... .......... ......... .......... .......... .......... .......... Net exports of goods and services .................................... ......... .......... .......... .......... .......... .......... .......... ......... .......... .......... .......... .......... .......... .......... ......... .......... .......... .......... .......... Exports ............................................................................... 3.6 3.5 3.5 4.2 4.6 3.5 2.5 3.2 2.9 5.8 4.7 –0.8 3.6 5.3 3.5 6.2 9.1 10.8 6.7 Goods ............................................................................. 3.1 3.3 3.5 3.6 4.3 3.0 1.3 2.2 3.0 6.2 5.2 0.0 3.3 5.1 2.8 6.0 10.0 12.3 5.6 Services.......................................................................... 4.9 3.8 3.5 5.5 5.2 4.6 5.3 5.5 2.7 4.9 3.7 –2.6 4.3 5.9 5.2 6.6 6.9 7.5 9.3 Imports ............................................................................... 6.3 4.3 3.7 6.9 2.3 9.7 10.3 4.5 –1.1 10.3 5.0 –9.1 0.9 12.8 7.4 12.8 12.8 28.8 9.2 Goods ............................................................................. 6.5 4.2 3.6 7.0 2.1 10.0 10.8 5.0 –2.0 10.4 5.4 –10.1 0.8 13.0 7.7 14.5 13.8 31.2 9.8 Services.......................................................................... 5.7 4.8 3.7 6.0 3.5 7.9 7.8 2.0 4.1 9.9 3.2 –3.8 1.1 11.7 6.1 4.5 7.8 16.8 6.2 Government consumption expenditures and gross investment......................................................................... 5.9 4.7 4.5 5.7 7.7 4.1 7.0 4.8 4.9 4.9 3.3 2.3 6.4 5.2 3.4 5.1 6.2 7.0 4.4 Federal ............................................................................... 4.8 4.1 3.4 2.6 11.8 1.7 3.1 0.8 10.2 4.1 1.2 0.9 7.6 3.7 0.9 2.3 5.6 5.1 2.7 National defense............................................................. 5.2 4.5 3.5 3.1 12.6 1.8 3.2 1.3 10.9 4.4 1.5 0.7 7.0 4.3 1.6 3.1 5.1 6.3 3.1 Nondefense .................................................................... 4.0 3.4 3.1 1.7 10.2 1.6 3.0 –0.1 8.9 3.5 0.5 1.2 8.8 2.6 –0.5 0.5 6.8 2.8 1.9 State and local.................................................................... 6.5 5.1 5.1 7.6 5.3 5.6 9.4 7.3 2.0 5.4 4.6 3.2 5.7 6.1 4.9 6.8 6.6 8.1 5.5 Addenda: Final sales of domestic product .......................................... 3.3 3.2 2.7 3.2 4.0 2.1 4.1 3.8 3.5 2.7 2.7 2.2 4.1 2.0 1.5 2.8 2.7 1.2 4.0 Gross domestic purchases................................................. 3.7 3.4 2.8 3.6 3.7 3.1 5.2 3.9 2.9 3.6 2.9 0.6 3.6 3.3 2.2 4.0 3.5 4.2 4.5 Final sales to domestic purchasers .................................... 3.7 3.4 2.8 3.6 3.7 3.1 5.2 4.0 2.8 3.6 2.9 0.6 3.7 3.3 2.2 4.0 3.5 4.3 4.5 Gross national product (GNP) ............................................ 3.3 3.2 2.7 3.2 4.0 2.1 4.1 3.7 3.5 2.7 2.8 2.2 4.1 2.0 1.5 2.8 2.6 1.1 3.9 Implicit price deflators: GDP ................................................................................ 3.3 3.2 2.7 3.2 4.0 2.1 4.1 3.8 3.6 2.7 2.7 2.2 4.2 2.0 1.5 2.5 2.6 1.3 3.9 Gross domestic purchases ............................................. 3.7 3.4 2.8 3.7 3.7 3.1 5.2 4.0 2.9 3.6 2.9 0.6 3.7 3.3 2.2 3.7 3.4 4.4 4.4 GNP ................................................................................ 3.3 3.2 2.7 3.2 4.0 2.1 4.1 3.8 3.6 2.7 2.8 2.1 4.2 2.0 1.5 2.5 2.5 1.3 3.9 r Revised See “Explanatory Note” at the end of the tables. Table 5. Real Gross Domestic Product, Quantity Indexes [Index numbers, 2000=100] Seasonally adjusted 2005 2006 2007 2007 III 2008 IV I II III r Gross domestic product .................................................................... 111.944 115.054 117.388 118.425 118.374 118.631 119.460 119.308 Personal consumption expenditures............................................................... 115.615 119.135 122.456 122.838 123.130 123.395 123.770 122.572 Durable goods.................................................................................................. 131.397 137.274 143.908 144.720 144.856 143.284 142.273 136.695 Nondurable goods............................................................................................ 115.687 119.930 122.872 123.182 123.261 123.147 124.317 122.035 Services ........................................................................................................... 112.525 115.298 118.259 118.605 119.020 119.739 119.937 119.916 Gross private domestic investment ................................................................. 107.953 110.200 104.278 105.950 102.639 101.110 98.071 98.169 Fixed investment .............................................................................................. 108.984 111.109 107.717 108.218 106.503 104.969 104.522 103.102 Nonresidential .............................................................................................. 99.520 106.987 112.244 113.863 114.819 115.504 116.212 115.714 Structures ................................................................................................. 79.747 86.318 97.264 100.005 102.076 104.206 108.716 111.257 Equipment and software........................................................................... 107.695 115.467 117.412 118.348 118.636 118.470 116.961 114.709 Residential ................................................................................................... 133.226 123.728 101.534 99.644 92.110 85.698 82.692 79.154 Change in private inventories........................................................................... .................. .................. .................. .................. .................. .................. .................. .................. Exports of goods and services ........................................................................ 109.942 119.937 130.068 133.747 135.189 136.880 140.908 141.943 Imports of goods and services ........................................................................ 123.455 130.815 133.654 134.033 133.254 132.991 130.509 129.367 Government consumption expenditures and gross investment................... 112.626 114.497 116.871 117.642 117.879 118.443 119.594 121.288 Federal ............................................................................................................. 125.181 128.019 130.078 131.772 131.610 133.488 135.628 140.080 State and local ................................................................................................. 106.256 107.642 110.167 110.484 110.914 110.844 111.517 111.891 Addenda: Final sales of domestic product ....................................................................... 112.159 115.254 118.062 118.898 119.133 119.397 120.679 120.273 Gross domestic purchases .............................................................................. 113.744 116.748 118.343 119.013 118.700 118.726 118.694 118.255 Final sales to domestic purchasers.................................................................. 113.959 116.948 118.995 119.469 119.427 119.461 119.853 119.173 Gross national product..................................................................................... 112.340 115.284 117.795 118.913 119.302 119.329 119.950 119.901 r Revised See “Explanatory Note” at the end of the tables. Table 6. Price Indexes for Gross Domestic Product [Index numbers, 2000=100] Seasonally adjusted 2005 2006 2007 2007 III 2008 IV I II III r Gross domestic product .................................................................... 113.039 116.676 119.819 119.984 120.826 121.613 121.951 123.134 Personal consumption expenditures (PCE) .................................................... 111.581 114.675 117.659 117.969 119.221 120.283 121.544 123.041 Durable goods.................................................................................................. 89.984 88.772 87.154 86.938 86.598 86.581 86.237 86.110 Nondurable goods............................................................................................ 111.606 114.984 118.407 118.682 121.092 123.059 125.021 128.129 Services ........................................................................................................... 116.700 120.752 124.712 125.179 126.253 127.133 128.450 129.538 Gross private domestic investment ................................................................. 111.381 116.102 117.735 117.566 117.960 117.815 117.926 118.510 Fixed investment .............................................................................................. 111.638 116.380 117.995 117.836 118.189 118.117 118.353 119.037 Nonresidential .............................................................................................. 103.829 107.277 108.739 108.558 109.015 109.177 109.788 110.913 Structures ................................................................................................. 135.177 151.822 157.662 157.402 159.138 160.182 161.496 164.285 Equipment and software........................................................................... 94.534 94.594 94.870 94.712 94.798 94.700 95.101 95.710 Residential ................................................................................................... 129.268 136.897 138.884 138.820 138.803 137.900 136.687 135.535 Change in private inventories........................................................................... .................. .................. .................. ................. .................. .................. .................. ................. Exports of goods and services ........................................................................ 108.814 112.618 116.586 117.018 118.794 121.397 124.560 126.592 Imports of goods and services ........................................................................ 111.154 115.932 120.168 121.200 124.907 128.722 137.136 140.189 Government consumption expenditures and gross investment................... 121.470 127.239 132.941 133.497 135.174 137.237 139.588 141.107 Federal ............................................................................................................. 120.834 125.806 130.076 130.342 131.070 132.879 134.553 135.447 State and local ................................................................................................. 121.862 128.109 134.671 135.400 137.649 139.866 142.632 144.540 Addenda: PCE excluding food and energy....................................................................... 109.644 112.129 114.548 114.797 115.512 116.158 116.782 117.481 Market-based PCE 1 ........................................................................................ 110.316 113.167 115.893 116.118 117.371 118.452 119.719 121.348 1 Market-based PCE excluding food and energy ............................................. 107.657 109.715 111.700 111.831 112.439 113.021 113.522 114.228 Final sales of domestic product ....................................................................... 113.074 116.710 119.853 120.020 120.856 121.653 122.008 123.204 Gross domestic purchases .............................................................................. 113.263 117.066 120.294 120.571 121.766 122.821 124.103 125.475 Final sales to domestic purchasers.................................................................. 113.299 117.101 120.329 120.609 121.798 122.863 124.160 125.543 Gross national product..................................................................................... 113.036 116.673 119.815 119.978 120.822 121.601 121.938 123.117 Implicit price deflators: Gross domestic product ............................................................................... 113.034 116.676 119.816 119.997 120.743 121.508 121.890 123.056 Final sales of domestic product.................................................................... 113.074 116.709 119.853 120.013 120.849 121.647 122.002 123.198 Gross domestic purchases........................................................................... 113.258 117.066 120.292 120.585 121.687 122.722 124.045 125.400 Final sales to domestic purchasers.............................................................. 113.299 117.101 120.329 120.604 121.794 122.858 124.156 125.538 Gross national product ................................................................................. 113.031 116.672 119.813 119.990 120.737 121.495 121.876 123.037 r Revised 1. This index is a supplemental measure that is based on household expenditures for which there are observable price measures. It excludes most implicit prices (for example, the services furnished without payment by financial intermediaries) and the expenses of nonprofit institutions. Percentage changes for these series a re included in the addenda to table 8 and appendix table A. See “Explanatory Note” at the end of the tables. Table 7. Real Gross Domestic Product: Percent Change From Preceding Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Gross domestic product (GDP) .................................................. 3.3 2.7 4.0 2.5 3.7 4.5 4.2 4.5 3.7 0.8 1.6 2.5 3.6 2.9 2.8 2.0 Personal consumption expenditures .................................................... 3.3 3.3 3.7 2.7 3.4 3.8 5.0 5.1 4.7 2.5 2.7 2.8 3.6 3.0 3.0 2.8 Durable goods ....................................................................................... 5.9 7.8 8.4 4.4 7.8 8.6 11.3 11.7 7.3 4.3 7.1 5.8 6.3 4.6 4.5 4.8 Nondurable goods ................................................................................. 2.0 2.7 3.5 2.2 2.6 2.7 4.0 4.6 3.8 2.0 2.5 3.2 3.5 3.4 3.7 2.5 Services................................................................................................. 3.5 2.8 2.9 2.6 2.9 3.3 4.2 4.0 4.5 2.4 1.9 1.9 3.2 2.6 2.5 2.6 Gross private domestic investment....................................................... 8.1 8.9 13.6 3.1 8.9 12.4 9.8 7.8 5.7 –7.9 –2.6 3.6 9.7 5.8 2.1 –5.4 Fixed investment.................................................................................... 5.9 8.6 9.3 6.5 9.0 9.2 10.2 8.3 6.5 –3.0 –5.2 3.4 7.3 6.8 1.9 –3.1 Nonresidential.................................................................................... 3.2 8.7 9.2 10.5 9.3 12.1 11.1 9.2 8.7 –4.2 –9.2 1.0 5.8 7.2 7.5 4.9 Structures....................................................................................... –6.0 –0.7 1.8 6.4 5.6 7.3 5.1 –0.4 6.8 –2.3 –17.1 –4.1 1.3 1.3 8.2 12.7 Equipment and software ................................................................ 7.3 12.5 11.9 12.0 10.6 13.8 13.3 12.7 9.4 –4.9 –6.2 2.8 7.4 9.3 7.2 1.7 Residential ......................................................................................... 13.8 8.2 9.6 –3.2 8.0 1.9 7.6 6.0 0.8 0.4 4.8 8.4 10.0 6.3 –7.1 –17.9 Change in private inventories ................................................................ ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ............ ........... ........... ........... Net exports of goods and services ....................................................... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ............ ........... ........... ........... Exports .................................................................................................. 6.9 3.2 8.7 10.1 8.4 11.9 2.4 4.3 8.7 –5.4 –2.3 1.3 9.7 7.0 9.1 8.4 Goods ................................................................................................ 7.5 3.3 9.7 11.7 8.8 14.3 2.2 3.8 11.2 –6.1 –4.0 1.8 9.0 7.7 9.9 7.5 Services............................................................................................. 5.5 3.2 6.3 6.3 7.2 5.9 2.9 5.6 2.9 –3.7 1.9 0.0 11.5 5.6 7.2 10.5 Imports .................................................................................................. 7.0 8.8 11.9 8.0 8.7 13.6 11.6 11.5 13.1 –2.7 3.4 4.1 11.3 5.9 6.0 2.2 Goods ................................................................................................ 9.3 10.1 13.3 9.0 9.3 14.4 11.7 12.4 13.5 –3.2 3.7 4.9 11.3 6.8 6.0 1.7 Services............................................................................................. –2.6 2.9 5.7 3.3 5.5 9.4 11.4 6.9 11.1 –0.3 2.1 0.0 11.5 1.4 6.0 4.4 Government consumption expenditures and gross investment ........ 0.5 –0.9 0.0 0.5 1.0 1.9 1.9 3.9 2.1 3.4 4.4 2.5 1.4 0.4 1.7 2.1 Federal .................................................................................................. –1.7 –4.2 –3.7 –2.7 –1.2 –1.0 –1.1 2.2 0.9 3.9 7.0 6.8 4.2 1.2 2.3 1.6 National defense................................................................................ –5.0 –5.6 –4.9 –3.8 –1.4 –2.8 –2.1 1.9 –0.5 3.9 7.4 8.7 5.8 1.5 1.6 2.5 Nondefense ....................................................................................... 6.9 –0.7 –1.2 –0.4 –0.7 2.6 0.7 2.8 3.5 3.9 6.3 3.4 1.1 0.6 3.6 –0.2 State and local....................................................................................... 2.2 1.4 2.6 2.6 2.3 3.6 3.6 4.7 2.7 3.2 3.1 0.2 –0.2 –0.1 1.3 2.3 Addenda: Final sales of domestic product ............................................................. 3.0 2.6 3.4 3.0 3.7 4.0 4.2 4.5 3.8 1.6 1.2 2.5 3.3 3.1 2.8 2.4 Gross domestic purchases.................................................................... 3.3 3.2 4.4 2.4 3.8 4.8 5.3 5.3 4.4 0.9 2.2 2.8 4.1 3.0 2.6 1.4 Final sales to domestic purchasers ....................................................... 3.1 3.2 3.8 2.8 3.8 4.3 5.3 5.4 4.5 1.8 1.8 2.8 3.8 3.1 2.6 1.8 Gross national product .......................................................................... 3.3 2.7 3.9 2.6 3.7 4.4 4.0 4.6 3.7 0.8 1.5 2.7 3.8 3.0 2.6 2.2 Real disposable personal income.......................................................... 3.4 1.0 2.7 2.8 3.0 3.5 5.8 3.0 4.8 1.9 3.1 2.2 3.6 1.4 3.5 2.8 Price indexes: Gross domestic purchases ................................................................ 2.3 2.2 2.1 2.1 1.8 1.4 0.6 1.6 2.5 2.0 1.6 2.3 3.1 3.7 3.4 2.8 Gross domestic purchases excluding food and energy ..................... 2.6 2.3 2.2 2.2 1.5 1.3 1.0 1.4 1.9 1.9 1.9 1.9 2.7 3.1 3.1 2.4 GDP ................................................................................................... 2.3 2.3 2.1 2.0 1.9 1.7 1.1 1.4 2.2 2.4 1.7 2.1 2.9 3.3 3.2 2.7 GDP excluding food and energy ........................................................ 2.5 2.4 2.2 2.1 1.7 1.7 1.2 1.5 2.0 2.1 2.1 1.9 2.7 3.2 3.2 2.5 Personal consumption expenditures .................................................. 2.9 2.3 2.1 2.1 2.2 1.7 0.9 1.7 2.5 2.1 1.4 2.0 2.6 2.9 2.8 2.6 Table 8. Real Gross Domestic Product: Percent Change From Quarter One Year Ago 2004 IV 2005 I II 2006 III IV I II 2007 III IV I II 2008 III IV I II III r Gross domestic product (GDP) .................................................. 3.1 3.2 2.9 3.0 2.7 3.1 3.2 2.4 2.4 1.3 1.8 2.8 2.3 2.5 2.1 0.7 Personal consumption expenditures (PCE).......................................... 3.7 3.0 3.3 3.3 2.6 3.2 3.0 2.7 3.2 3.1 2.9 2.9 2.2 1.5 1.3 –0.2 Durable goods ....................................................................................... 5.6 4.3 6.8 6.2 1.2 5.5 3.0 2.5 6.9 4.6 5.4 5.1 4.2 0.8 –1.1 –5.5 Nondurable goods ................................................................................. 3.5 3.0 3.6 3.6 3.6 4.1 3.8 3.6 3.2 3.0 2.7 2.4 1.7 0.7 1.2 –0.9 Services................................................................................................. 3.3 2.7 2.4 2.6 2.4 2.4 2.7 2.2 2.6 2.9 2.6 2.7 2.1 1.9 1.7 1.1 Gross private domestic investment....................................................... 9.1 10.9 4.4 3.5 4.8 4.1 5.4 3.0 –3.9 –7.7 –6.2 –4.1 –3.3 –2.3 –6.6 –7.3 Fixed investment.................................................................................... 7.2 8.7 7.3 6.4 5.1 5.8 3.3 0.7 –1.8 –4.6 –3.3 –2.3 –1.9 –2.5 –3.6 –4.7 Nonresidential.................................................................................... 7.5 9.2 8.1 6.6 4.9 7.9 7.9 7.7 6.5 3.5 4.4 5.3 6.4 6.2 4.2 1.6 Structures....................................................................................... 2.3 4.2 2.3 –1.0 –0.5 1.4 6.4 12.7 12.8 11.7 11.4 12.9 14.5 13.9 13.9 11.3 Equipment and software ................................................................ 9.4 11.0 10.2 9.4 7.0 10.5 8.5 5.9 4.2 0.3 1.6 2.0 2.8 2.7 –0.3 –3.1 Residential ......................................................................................... 6.7 7.7 6.1 6.0 5.4 2.5 –4.3 –10.8 –15.5 –18.5 –17.3 –17.0 –19.0 –21.3 –21.7 –20.6 Change in private inventories ................................................................ ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ............ ........... ........... ........... Net exports of goods and services ....................................................... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ........... ............ ........... ........... ........... Exports .................................................................................................. 7.4 6.9 7.5 6.8 7.0 9.0 8.2 9.0 10.1 6.1 7.0 11.7 8.9 10.1 11.0 6.1 Goods ................................................................................................ 7.0 6.9 8.7 6.8 8.3 11.0 9.0 10.2 9.5 5.6 5.7 10.0 8.7 9.4 11.7 7.3 Services............................................................................................. 8.3 6.9 4.8 6.6 4.0 4.7 6.2 6.2 11.5 7.3 10.0 15.6 9.3 11.7 9.3 3.5 Imports .................................................................................................. 11.5 9.1 5.5 4.5 4.8 6.6 6.5 7.1 3.8 3.2 2.2 2.2 1.1 –1.0 –1.9 –3.5 Goods ................................................................................................ 11.9 10.2 6.3 5.2 5.8 6.8 6.7 7.4 3.1 2.9 1.7 1.4 0.9 –1.6 –2.4 –4.1 Services............................................................................................. 9.3 3.7 1.5 0.8 –0.1 5.6 5.1 5.3 8.0 4.8 4.8 6.5 1.8 2.2 0.6 –0.2 Government consumption expenditures and gross investment ........ 0.7 0.2 0.1 0.6 0.6 1.6 1.7 1.3 2.1 1.4 2.0 2.6 2.4 2.6 2.6 3.1 Federal .................................................................................................. 2.4 1.2 0.9 1.7 1.0 3.1 2.5 0.6 2.9 –0.4 1.6 2.9 2.3 4.8 4.7 6.3 National defense................................................................................ 2.5 1.3 1.8 2.1 0.8 2.2 1.7 –1.5 4.1 0.4 2.0 4.7 2.7 6.2 5.9 7.7 Nondefense ....................................................................................... 2.3 1.0 –0.9 0.8 1.4 5.1 4.1 4.9 0.5 –2.1 0.8 –0.8 1.5 1.9 2.3 3.3 State and local....................................................................................... –0.4 –0.4 –0.3 –0.1 0.3 0.7 1.2 1.7 1.6 2.4 2.3 2.3 2.4 1.4 1.4 1.3 Addenda: Final sales of domestic product ............................................................. 2.8 2.8 3.4 3.5 2.7 3.4 2.8 2.0 2.8 1.8 2.3 3.1 2.5 2.5 2.5 1.2 Gross domestic purchases.................................................................... 3.9 3.6 2.9 2.8 2.6 3.1 3.2 2.4 1.9 1.1 1.3 1.7 1.4 1.1 0.4 –0.6 Final sales to domestic purchasers ....................................................... 3.6 3.3 3.3 3.3 2.6 3.4 2.8 2.1 2.2 1.6 1.8 2.0 1.6 1.1 0.8 –0.2 Gross national product .......................................................................... 2.9 3.2 3.1 3.1 2.8 2.9 3.1 2.1 2.5 1.2 1.6 3.1 2.9 3.0 2.4 0.8 Real disposable personal income.......................................................... 4.1 1.9 1.9 0.9 0.9 3.4 3.1 4.0 3.6 3.4 2.9 3.1 1.8 0.6 3.3 0.2 Price indexes: Gross domestic purchases ................................................................ 3.7 3.6 3.3 3.9 4.0 3.8 3.9 3.3 2.5 2.7 2.6 2.4 3.3 3.3 3.5 4.1 Gross domestic purchases excluding food and energy ..................... 3.1 3.2 3.0 3.1 3.2 3.0 3.2 3.1 2.9 2.8 2.4 2.3 2.3 2.1 2.2 2.4 GDP ................................................................................................... 3.2 3.3 2.9 3.4 3.5 3.4 3.5 3.2 2.8 2.9 2.8 2.5 2.6 2.3 2.0 2.6 GDP excluding food and energy ........................................................ 3.2 3.3 3.1 3.2 3.3 3.2 3.4 3.2 3.0 2.9 2.5 2.3 2.3 2.0 1.9 2.2 PCE ................................................................................................... 3.1 2.8 2.5 3.2 3.3 3.1 3.3 2.9 1.9 2.3 2.4 2.2 3.5 3.5 3.7 4.3 PCE excluding food and energy......................................................... 2.2 2.3 2.1 2.1 2.2 2.1 2.3 2.5 2.3 2.3 2.1 2.0 2.2 2.2 2.3 2.3 Market-based PCE 1 .......................................................................... 2.8 2.5 2.2 3.1 3.1 2.9 3.1 2.7 1.6 2.1 2.2 2.0 3.3 3.4 3.6 4.5 1 Market-based PCE excluding food and energy ............................... 1.6 1.7 1.7 1.7 1.7 1.6 1.9 2.1 2.0 2.1 1.8 1.6 1.8 1.7 1.9 2.1 r Revised 1. This index is a supplemental measure that is based on household expenditures for which there are observable price measures. It excludes most implicit prices (for example, the services furnished without payment by financial intermediaries) and the expenses of nonprofit institutions. Table 9. Relation of Gross Domestic Product, Gross National Product, and National Income [Billions of dollars] Seasonally adjusted at annual rates 2005 Gross domestic product ................................................................................................... Plus: Income receipts from the rest of the world.................................................................. Less: Income payments to the rest of the world .................................................................. Equals: Gross national product ....................................................................................... Less: Consumption of fixed capital ...................................................................................... Less: Statistical discrepancy................................................................................................ Equals: National income ................................................................................................... Compensation of employees............................................................................................ Wage and salary accruals............................................................................................ Supplements to wages and salaries ............................................................................ Proprietors’ income with inventory valuation and capital consumption adjustments ....... Rental income of persons with capital consumption adjustment ..................................... Corporate profits with inventory valuation and capital consumption adjustments............ Net interest and miscellaneous payments ....................................................................... Taxes on production and imports less subsidies.............................................................. Business current transfer payments................................................................................. Current surplus of government enterprises ..................................................................... Addendum: Gross domestic income ................................................................................................... 2006 2007 2007 2008 III IV I II III r 12,421.9 573.5 480.5 12,514.9 1,612.0 –71.2 10,974.0 7,030.8 5,676.7 1,354.1 959.8 40.9 1,447.9 569.1 868.9 70.0 –13.4 13,178.4 725.4 647.1 13,256.6 1,623.9 –163.0 11,795.7 7,433.8 6,028.5 1,405.3 1,014.7 44.3 1,668.5 631.2 926.4 85.4 –8.6 13,807.5 861.7 759.3 13,910.0 1,720.5 –81.4 12,270.9 7,812.3 6,355.7 1,456.6 1,056.2 40.0 1,642.4 664.4 963.2 100.2 –7.9 13,950.6 898.5 786.3 14,062.8 1,731.9 –7.8 12,338.6 7,839.3 6,377.7 1,461.6 1,063.8 41.8 1,668.3 663.0 965.7 102.2 –5.5 14,031.2 907.4 742.0 14,196.6 1,758.6 13.9 12,424.1 7,941.0 6,465.5 1,475.5 1,073.8 38.6 1,611.1 688.1 975.3 103.1 –6.7 14,150.8 843.2 705.1 14,289.0 1,778.0 63.4 12,447.6 8,009.7 6,518.0 1,491.7 1,071.7 39.1 1,593.5 662.3 975.1 103.2 –7.1 14,294.5 822.8 708.9 14,408.3 1,803.1 136.6 12,468.6 8,033.5 6,531.3 1,502.2 1,076.9 58.6 1,533.3 683.4 988.5 102.1 –7.7 14,412.8 815.6 688.7 14,539.6 1,898.1 162.8 12,478.8 8,080.4 6,570.1 1,510.3 1,080.5 68.5 1,514.8 656.6 993.8 92.1 –8.0 12,493.0 13,341.4 13,889.0 13,958.4 14,017.4 14,087.4 14,157.8 14,250.0 r Revised Table 10. Personal Income and Its Disposition [Billions of dollars] Seasonally adjusted at annual rates 2005 1 2006 2007 2007 2008 III IV I II III r Personal income ............................................................................................................. Compensation of employees, received ............................................................................ Wage and salary disbursements.................................................................................. Supplements to wages and salaries ............................................................................ Proprietors’ income with inventory valuation and capital consumption adjustments ....... Farm ............................................................................................................................. Nonfarm ....................................................................................................................... Rental income of persons with capital consumption adjustment ..................................... Personal income receipts on assets ................................................................................ Personal interest income.............................................................................................. Personal dividend income ............................................................................................ Personal current transfer receipts .................................................................................... Less: Contributions for government social insurance ...................................................... Less: Personal current taxes ............................................................................................... Equals: Disposable personal income .............................................................................. Less: Personal outlays......................................................................................................... Equals: Personal saving ................................................................................................... 10,269.8 7,025.8 5,671.7 1,354.1 959.8 34.1 925.7 40.9 1,596.9 1,022.0 574.9 1,520.7 874.3 1,207.8 9,062.0 9,029.5 32.5 10,993.9 7,432.6 6,027.2 1,405.3 1,014.7 16.2 998.6 44.3 1,824.8 1,125.4 699.4 1,603.0 925.5 1,353.2 9,640.7 9,570.0 70.7 11,663.2 7,818.6 6,362.0 1,456.6 1,056.2 44.0 1,012.2 40.0 2,000.1 1,214.3 785.8 1,713.3 965.1 1,492.8 10,170.5 10,113.1 57.4 11,730.4 7,839.3 6,377.7 1,461.6 1,063.8 47.4 1,016.4 41.8 2,030.9 1,236.2 794.7 1,720.6 966.0 1,501.6 10,228.8 10,182.0 46.8 11,872.1 7,941.0 6,465.5 1,475.5 1,073.8 47.1 1,026.7 38.6 2,056.2 1,242.7 813.5 1,737.8 975.3 1,520.5 10,351.5 10,309.2 42.4 11,960.5 8,009.7 6,518.0 1,491.7 1,071.7 41.6 1,030.1 39.1 2,054.1 1,224.6 829.5 1,778.1 992.2 1,535.0 10,425.5 10,404.9 20.6 12,152.2 8,033.5 6,531.3 1,502.2 1,076.9 38.0 1,039.0 58.6 2,052.3 1,208.7 843.6 1,926.3 995.4 1,346.1 10,806.0 10,538.2 267.9 12,159.4 8,080.4 6,570.1 1,510.3 1,080.5 32.4 1,048.2 68.5 2,055.7 1,217.4 838.3 1,872.7 998.4 1,468.6 10,690.7 10,559.9 130.8 Personal saving as a percentage of disposable personal income ................................... Addendum: Disposable personal income, billions of chained (2000) dollars 2 .................................... 0.4 0.7 0.6 0.5 0.4 0.2 2.5 1.2 8,121.4 8,407.0 8,644.0 8,671.1 8,683.1 8,667.9 8,891.0 8,689.1 r Revised 1. Personal income is also equal to national income less corporate profits with inventory valuation and capital consumption adjustments, taxes on production and imports less subsidies, contributions for government social insurance, net interest and miscellaneous payments, business current transfer payments, current surplus of government enterprises, and wage accruals less disbursements, plus personal income receipts on assets, and personal current transfer receipts. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. Table 11. Corporate Profits: Level and Percent Change Billions of dollars Percent change from preceding period Seasonally adjusted at annual rates 2005 2006 2007 2006 2007 Corporate profits with inventory valuation and capital consumption adjustments .......................... Less: Taxes on corporate income................................... Equals: Profits after tax with inventory valuation and capital consumption adjustments ................... Net dividends.............................................................. Undistributed profits with inventory valuation and capital consumption adjustments............................ Cash flow: Net cash flow with inventory valuation and capital consumption adjustments ................................... Undistributed profits with inventory valuation and capital consumption adjustments........................ Consumption of fixed capital................................... Less: Inventory valuation adjustment ......................... Equals: Net cash flow .............................................. Addenda: Profits before tax (without inventory valuation and capital consumption adjustments) .......................... Profits after tax (without inventory valuation and capital consumption adjustments) .......................... Inventory valuation adjustment ................................... Capital consumption adjustment ................................ 2007 2008 III IV I II Quarter one year ago Quarterly rates 2007 III r 2008 IV I II 2008 III r III r 1,447.9 1,668.5 1,642.4 1,668.3 1,611.1 1,593.5 1,533.3 1,514.8 15.2 –1.6 –3.4 –1.1 –3.8 –1.2 –9.2 413.7 468.9 450.4 451.1 433.5 402.9 406.8 393.5 13.3 –4.0 –3.9 –7.0 1.0 –3.3 –12.8 1,034.2 577.4 1,199.6 702.1 1,192.0 788.7 1,217.3 797.6 1,177.6 816.4 1,190.6 832.5 1,126.5 846.4 1,121.3 841.1 16.0 21.6 –0.6 12.3 –3.3 2.4 1.1 2.0 –5.4 1.7 –0.5 –0.6 –7.9 5.4 456.9 497.5 403.4 419.7 361.2 358.1 280.0 280.3 8.9 –18.9 –13.9 –0.9 –21.8 0.1 –33.2 1,315.8 1,390.3 1,348.7 1,371.4 1,326.9 1,337.0 1,276.5 1,319.6 5.7 –3.0 –3.2 0.8 –4.5 3.4 –3.8 456.9 858.9 –37.8 1,353.6 497.5 892.8 –39.5 1,429.8 403.4 945.3 –51.2 1,399.9 419.7 951.8 –31.0 1,402.5 361.2 965.7 –74.1 1,401.0 358.1 978.8 –109.4 1,446.3 280.0 996.5 –154.0 1,430.5 280.3 8.9 –18.9 –13.9 –0.9 –21.8 0.1 –33.2 1,039.4 4.0 5.9 1.5 1.4 1.8 4.3 9.2 –90.9 .............. ............. .............. ............. .............. .............. ............. 1,410.5 5.6 –2.1 –0.1 3.2 –1.1 –1.4 0.6 1,620.6 1,873.7 1,886.3 1,897.1 1,894.3 1,750.9 1,750.0 1,693.7 1,206.9 –37.8 –134.8 1,404.8 –39.5 –165.7 1,435.9 –51.2 –192.7 1,446.1 –31.0 –197.8 1,460.9 –74.1 –209.2 1,348.0 –109.4 –48.0 1,343.2 –154.0 –62.7 1,300.1 16.4 2.2 1.0 –7.7 –0.4 –3.2 –10.1 –90.9 .............. ............. .............. ............. .............. .............. ............. –88.0 .............. ............. .............. ............. .............. .............. ............. 15.6 0.7 –0.1 –7.6 –0.1 –3.2 –10.7 r Revised Table 12. Corporate Profits by Industry: Level and Change From Preceding Period [Billions of dollars] Level Change from preceding period Seasonally adjusted at annual rates 2007 2005 2006 2007 2007 III Corporate profits with inventory valuation and capital consumption adjustments................... Domestic industries ..................................................... Financial ..................................................................... Nonfinancial................................................................ Rest of the world .......................................................... Receipts from the rest of the world............................. Less: Payments to the rest of the world...................... Corporate profits with inventory valuation adjustment......................................................... Domestic industries ..................................................... Financial ..................................................................... Federal Reserve banks........................................... Other financial......................................................... Nonfinancial................................................................ Utilities .................................................................... Manufacturing ......................................................... Durable goods..................................................... Fabricated metal products............................... Machinery ....................................................... Computer and electronic products .................. Electrical equipment, appliances, and components................................................. Motor vehicles, bodies and trailers, and parts. Other durable goods........................................ Nondurable goods............................................... Food and beverage and tobacco products ...... Petroleum and coal products........................... Chemical products .......................................... Other nondurable goods.................................. Wholesale trade...................................................... Retail trade ............................................................. Transportation and warehousing............................. Information.............................................................. Other nonfinancial................................................... Rest of the world .......................................................... 2006 2008 IV I II 2008 2007 III r IV I II III r 1,447.9 1,208.5 407.1 801.4 239.4 384.1 144.6 1,668.5 1,401.0 462.1 939.0 267.5 438.9 171.4 1,642.4 1,297.8 429.7 868.1 344.7 509.2 164.5 1,668.3 1,311.9 439.3 872.6 356.4 528.4 172.0 1,611.1 1,189.7 370.3 819.5 421.3 553.1 131.8 1,593.5 1,195.1 407.6 787.4 398.5 556.8 158.3 1,533.3 1,159.8 376.6 783.2 373.5 565.7 192.2 1,514.8 1,136.4 301.1 835.3 378.4 555.3 176.9 220.6 192.5 55.0 137.6 28.1 54.8 26.8 –26.1 –103.2 –32.4 –70.9 77.2 70.3 –6.9 –57.2 –122.2 –69.0 –53.1 64.9 24.7 –40.2 –17.6 5.4 37.3 –32.1 –22.8 3.7 26.5 –60.2 –35.3 –31.0 –4.2 –25.0 8.9 33.9 –18.5 –23.4 –75.5 52.1 4.9 –10.4 –15.3 1,582.8 1,343.3 425.3 26.6 398.7 918.1 28.9 243.8 93.3 17.8 14.9 7.9 1,834.2 1,566.7 478.8 33.8 445.0 1,087.9 55.6 304.3 115.9 19.2 20.0 14.1 1,835.1 1,490.5 449.9 37.7 412.2 1,040.6 58.5 316.6 127.4 21.7 22.3 13.5 1,866.1 1,509.7 460.3 37.5 422.8 1,049.3 58.7 306.6 130.9 22.5 22.2 13.2 1,820.2 1,398.9 392.4 36.5 355.9 1,006.5 63.2 292.1 128.3 22.8 22.0 15.4 1,641.5 1,243.1 412.8 35.8 377.1 830.2 46.2 240.5 85.5 18.9 19.2 14.4 1,596.0 1,222.5 383.2 31.0 352.2 839.3 56.7 214.9 54.2 15.1 14.8 6.6 1,602.8 1,224.4 308.8 34.4 274.3 915.6 59.1 272.6 68.4 14.7 12.3 4.0 251.4 223.4 53.5 7.2 46.3 169.8 26.7 60.5 22.6 1.4 5.1 6.2 0.9 –76.2 –28.9 3.9 –32.8 –47.3 2.9 12.3 11.5 2.5 2.3 –0.6 –45.9 –110.8 –67.9 –1.0 –66.9 –42.8 4.5 –14.5 –2.6 0.3 –0.2 2.2 –178.7 –155.8 20.4 –0.7 21.2 –176.3 –17.0 –51.6 –42.8 –3.9 –2.8 –1.0 –45.5 –20.6 –29.6 –4.8 –24.9 9.1 10.5 –25.6 –31.3 –3.8 –4.4 –7.8 6.8 1.9 –74.4 3.4 –77.9 76.3 2.4 57.7 14.2 –0.4 –2.5 –2.6 –1.6 0.1 54.2 150.5 26.2 78.9 25.8 19.6 97.3 120.4 29.1 79.7 318.9 8.4 –8.4 62.6 188.4 33.8 77.5 53.8 23.4 107.5 132.3 42.5 91.1 354.7 10.9 –5.9 64.9 189.3 38.5 66.9 66.4 17.5 102.6 132.3 42.7 103.0 284.9 10.7 –4.4 66.8 175.7 39.2 55.6 65.1 15.9 109.1 126.0 47.0 108.4 293.5 11.5 –7.7 64.3 163.8 38.7 33.6 73.8 17.8 80.2 124.5 37.7 117.9 290.9 6.9 –19.9 46.1 155.0 34.8 48.8 60.2 11.1 49.2 112.0 24.4 106.0 252.0 5.9 –27.4 39.3 160.7 40.9 36.6 78.5 4.7 59.4 92.7 24.8 115.0 275.8 5.6 –20.2 52.0 204.2 40.8 92.0 70.8 0.6 92.1 86.2 25.2 103.8 276.6 10.0 –8.5 8.4 37.9 7.6 –1.4 28.0 3.8 10.2 11.9 13.4 11.4 35.8 2.5 2.5 2.3 0.9 4.7 –10.6 12.6 –5.9 –4.9 0.0 0.2 11.9 –69.8 0.8 –3.3 –2.5 –11.9 –0.5 –22.0 8.7 1.9 –28.9 –1.5 –9.3 9.5 –2.6 –4.6 –12.2 –18.2 –8.8 –3.9 15.2 –13.6 –6.7 –31.0 –12.5 –13.3 –11.9 –38.9 –1.0 –7.5 –6.8 5.7 6.1 –12.2 18.3 –6.4 10.2 –19.3 0.4 9.0 23.8 –0.3 7.2 12.7 43.5 –0.1 55.4 –7.7 –4.1 32.7 –6.5 0.4 –11.2 0.8 239.4 267.5 344.7 356.4 421.3 398.5 373.5 378.4 28.1 77.2 64.9 –22.8 –25.0 4.9 r Revised NOTE. Estimates in this table are based on the 1997 North American Industry Classification System (NAICS). Table 13. Gross Value Added of Nonfinancial Domestic Corporate Business Seasonally adjusted at annual rates 2005 2006 2007 2007 III 2008 IV I II III r Billions of dollars Gross value added of nonfinancial corporate business......................................... Consumption of fixed capital................................................................................................ Net value added ................................................................................................................. Compensation of employees............................................................................................ Wage and salary accruals............................................................................................ Supplements to wages and salaries ............................................................................ Taxes of production and imports less subsidies............................................................... Net operating surplus....................................................................................................... Net interest and miscellaneous payments.................................................................... Business current transfer payments ............................................................................. Corporate profits with inventory valuation and capital consumption adjustments ........ Taxes on corporate income ...................................................................................... Profits after tax with inventory valuation and capital consumption adjustments....... Net dividends........................................................................................................ Undistributed profits with inventory valuation and capital consumption adjustments ...................................................................................................... Addenda: Profits before tax (without inventory valuation and capital consumption adjustments) .... Profits after tax (without inventory valuation and capital consumption adjustments) ....... Inventory valuation adjustment ........................................................................................ Capital consumption adjustment...................................................................................... 6,396.1 743.9 5,652.2 4,075.6 3,337.9 737.6 563.2 1,013.5 153.6 58.5 801.4 274.5 526.9 184.2 6,863.4 775.2 6,088.3 4,316.8 3,548.2 768.6 591.1 1,180.3 169.6 71.8 939.0 309.3 629.7 474.4 7,075.1 822.3 6,252.8 4,525.3 3,734.2 791.1 611.9 1,115.5 179.4 68.1 868.1 321.1 547.0 503.4 7,098.6 828.1 6,270.6 4,537.2 3,744.2 793.0 614.2 1,119.1 178.8 67.7 872.6 318.9 553.7 492.7 7,135.5 840.7 6,294.8 4,602.7 3,802.8 799.9 619.5 1,072.6 185.4 67.7 819.5 314.7 504.7 533.0 7,119.3 852.6 6,266.7 4,623.0 3,814.8 808.2 617.9 1,025.8 180.5 57.9 787.4 279.8 507.6 494.0 7,153.1 868.5 6,284.6 4,630.8 3,819.1 811.7 625.6 1,028.2 186.7 58.2 783.2 294.0 489.2 514.2 7,257.6 909.8 6,347.8 4,650.4 3,836.3 814.1 628.6 1,068.8 180.9 52.6 835.3 303.7 531.6 498.4 342.7 155.3 43.5 61.0 –28.3 13.6 –25.0 33.2 955.9 681.3 –37.8 –116.7 1,127.4 818.1 –39.5 –149.0 1,091.7 770.7 –51.2 –172.5 1,080.4 761.5 –31.0 –176.8 1,080.6 765.8 –74.1 –187.0 939.6 659.8 –109.4 –42.8 993.3 699.3 –154.0 –56.1 1,006.5 702.7 –90.9 –80.3 6,375.1 757.5 5,617.7 6,408.2 789.3 5,618.8 Billions of chained (2000) dollars 1 Gross value added of nonfinancial corporate business ...................................... Consumption of fixed capital 2 ............................................................................................. Net value added 3 ................................................................................................................ 5,916.1 682.6 5,233.5 6,156.4 686.7 5,469.7 6,243.1 716.9 5,526.2 6,271.2 721.0 5,550.3 6,304.4 731.6 5,572.9 6,283.0 744.8 5,538.3 Dollars; quarters seasonally adjusted Price, costs, and profits per unit of real gross value added of nonfinancial corporate business: Price per unit of real gross value added of nonfinancial corporate business 4 ...... Compensation of employees (unit labor cost).................................................................. Unit nonlabor cost ............................................................................................................ Consumption of fixed capital ........................................................................................ Taxes on production and imports less subsidies plus business current transfer payments.................................................................................................................. Net interest and miscellaneous payments.................................................................... Corporate profits with inventory valuation and capital consumption adjustments (unit profits from current production) .................................................................................... Taxes on corporate income .......................................................................................... Profits after tax with inventory valuation and capital consumption adjustments........... 1.081 0.689 0.257 0.126 1.115 0.701 0.262 0.126 1.133 0.725 0.270 0.132 1.132 0.723 0.270 0.132 1.132 0.730 0.271 0.133 1.133 0.736 0.273 0.136 1.122 0.726 0.272 0.136 1.133 0.726 0.276 0.142 0.105 0.026 0.108 0.028 0.109 0.029 0.109 0.029 0.109 0.029 0.108 0.029 0.107 0.029 0.106 0.028 0.135 0.046 0.089 0.153 0.050 0.102 0.139 0.051 0.088 0.139 0.051 0.088 0.130 0.050 0.080 0.125 0.045 0.081 0.123 0.046 0.077 0.130 0.047 0.083 r Revised 1. The current-dollar gross value added is deflated using the gross value added chain-type price index for nonfinancial industries from the GDP-by-industry accounts. For periods when this price index is not available, the chain-type price index for GDP goods and structures is used. 2. Chained-dollar consumption of fixed capital of nonfinancial corporate business is calculated as the product of the chain-type quantity index and the 2000 current-dollar value of the corresponding series, divided by 100. 3. Chained-dollar net value added of nonfinancial corporate business is the difference between the gross value added and the consumption of fixed capital. 4. The deflator for gross value added of nonfinancial corporate business divided by 100. NOTE. Estimates in this table are based on the 1997 North American Industry Classification System (NAICS). Appendix Table A. Real Gross Domestic Product and Related Aggregates and Price Indexes: Percent Change From Preceding Period Seasonally adjusted at annual rates 2005 2006 2007 2004 IV Gross domestic product (GDP) and related aggregates: GDP.................................................................................. Goods............................................................................... Services............................................................................ Structures ......................................................................... Motor vehicle output ......................................................... GDP excluding motor vehicle output ................................ Final sales of computers 1 ................................................ GDP excluding final sales of computers........................... Farm gross value added 2 ................................................ Nonfarm business gross value added 3 ............................ Price indexes: GDP.................................................................................. GDP excluding food and energy ....................................... GDP excluding final sales of computers........................... Gross domestic purchases ............................................... Gross domestic purchases excluding food and energy .... Gross domestic purchases excluding final sales of computers to domestic purchasers............................... Personal consumption expenditures (PCE) ...................... PCE excluding food and energy ....................................... Market-based PCE 4......................................................... Market-based PCE excluding food and energy 4 .............. 2005 I 2006 II III IV I II 3.8 1.3 4.8 2.7 5.3 2.0 11.1 5.9 3.9 0.9 2.6 2.3 –0.6 1.3 –0.8 –3.8 24.6 –31.0 20.2 –10.1 3.2 2.6 4.3 3.1 11.5 37.2 27.8 25.2 3.8 1.1 4.7 2.5 3.1 –26.8 –22.3 3.1 4.8 1.3 6.0 2.9 2007 III IV 0.8 1.5 1.5 1.3 2.3 3.8 –8.8 –9.8 13.7 –19.0 0.4 2.2 7.0 34.2 0.8 1.3 6.9 30.4 0.3 1.4 I 2008 II III IV I II 0.1 –2.5 2.1 –3.9 3.8 –0.1 –5.0 0.1 12.5 –0.9 4.8 10.3 2.7 0.8 4.6 4.8 37.2 4.6 –6.1 5.8 4.8 –0.2 0.9 2.8 9.0 0.0 0.9 4.9 4.0 1.3 2.7 1.7 –2.9 –9.3 –10.1 3.3 17.3 –25.7 –14.2 –33.8 4.4 0.7 1.3 4.0 52.6 23.7 8.2 28.4 4.5 –0.3 0.8 2.7 8.6 8.2 –15.5 –10.7 5.5 –0.7 0.9 2.8 III r 2.9 4.3 2.2 3.2 3.8 2.9 23.4 2.8 9.1 3.4 2.8 5.4 2.3 –2.2 –0.9 2.9 25.0 2.6 –6.9 3.2 2.0 3.1 2.8 –5.0 –1.1 2.1 21.3 1.9 9.7 2.0 2.5 3.7 2.4 –0.3 –9.6 3.0 50.1 2.3 40.8 2.6 3.0 3.6 2.1 6.0 4.6 2.9 8.5 2.9 –1.9 3.7 2.6 4.7 1.0 5.1 7.1 2.5 38.5 2.4 27.7 2.9 –0.5 –4.2 1.5 –1.0 7.3 –0.7 –1.7 –0.5 7.1 –1.9 3.3 3.2 3.4 3.7 3.1 3.2 3.2 3.4 3.4 3.1 2.7 2.5 2.8 2.8 2.4 3.2 3.1 3.4 3.6 2.8 4.0 3.9 4.2 3.7 3.9 2.1 2.7 2.3 3.1 2.7 4.1 3.2 4.2 5.2 2.9 3.7 3.5 3.9 3.9 3.2 3.5 3.6 3.7 2.9 3.4 2.7 3.2 2.9 3.6 3.2 2.8 2.6 2.9 2.9 2.5 2.2 2.6 2.3 0.6 2.5 4.1 3.2 4.2 3.6 2.9 2.0 1.7 2.1 3.3 1.8 1.5 1.8 1.7 2.2 1.9 2.8 2.4 3.0 4.0 2.4 2.6 2.0 2.7 3.5 2.2 1.1 1.5 1.2 4.2 2.2 3.9 3.0 4.1 4.5 2.8 3.9 2.9 2.1 2.7 1.7 3.6 2.8 2.3 2.6 1.9 2.9 2.6 2.2 2.4 1.8 3.9 3.0 2.1 2.9 1.8 3.9 2.5 2.5 2.2 2.2 3.3 2.5 2.1 2.2 1.6 5.4 4.7 1.6 4.9 1.2 4.1 3.3 2.4 3.2 2.0 3.0 1.8 2.1 1.4 1.8 3.8 3.3 3.0 3.1 2.6 3.1 3.1 2.3 3.1 2.1 0.7 –0.5 1.8 –1.1 1.5 3.8 3.4 2.4 3.5 2.3 3.5 3.6 1.8 3.5 1.2 2.4 2.5 2.1 2.0 1.4 4.2 4.3 2.5 4.4 2.2 3.7 3.6 2.3 3.7 2.1 4.4 4.3 2.2 4.3 1.8 4.7 5.0 2.4 5.6 2.5 r Revised 1. For some components of final sales of computers, includes computer parts. 2. Farm output less intermediate goods and services purchased. 3. Consists of GDP less gross value added of farm, of households and institutions, and of general government. 4. This index is a supplemental measure that is based on household expenditures for which there are observable price measures. It excludes most implicit prices (for example, the services furnished without payment by financial intermediaries) and the expenses of nonprofit institutions. See “Explanatory Note” at the end of the tables. Explanatory Note: NIPA Measures of Quantities and Prices Current-dollar GDP is a measure of the market value of goods, services, and structures produced in the economy in a particular period. Changes in current-dollar GDP can be decomposed into quantity and price components. Quantities, or “real” measures, and prices are expressed as index numbers with the reference year -- at present, the year 2000 -- equal to 100. Annual changes in quantities and prices are calculated using a Fisher formula that incorporates weights from two adjacent years. (Quarterly changes in quantities and prices are calculated using a Fisher formula that incorporates weights from two adjacent quarters; quarterly indexes are adjusted for consistency to the annual indexes before percent changes are calculated.) For example, the 2006-07 annual percent change in real GDP uses prices for 2006 and 2007 as weights, and the 2006-07 annual percent change in GDP prices uses quantities for 2006 and 2007 as weights. These annual changes are “chained” (multiplied) together to form time series of quantity and price indexes. Percent changes in Fisher indexes are not affected by the choice of reference year. (BEA also publishes a measure of the price level known as the implicit price deflator (IPD), which is calculated as the ratio of the current-dollar value to the corresponding chained-dollar value, multiplied by 100. The values of the IPD are very close to the values of the corresponding "chain-type" price index.) Index numbers of quantity and price indexes for GDP and its major components are presented in this release in tables 5 and 6. Percent changes from the preceding period are presented in tables 1, 4, 7, 8, and Appendix Table A. Contributions by major components to changes in real GDP are presented in table 2. Measures of real GDP and its major components are also presented in dollar-denominated form, designated "chained (2000) dollar estimates." For most series, these estimates, which are presented in table 3, are computed by multiplying the current-dollar value in 2000 by a corresponding quantity index number and then dividing by 100. For example, if a current-dollar GDP component equaled $100 in 2000 and if real output for this component increased 10 percent in 2001, then the chained (2000) dollar value of this component in 2001 would be $110 (= $100 x 110 / 100). Percent changes calculated from chained-dollar estimates and from chain-type quantity indexes are the same; any differences will be small and due to rounding. Chained-dollar values for the detailed GDP components will not necessarily sum to the chained-dollar estimate of GDP (or to any intermediate aggregate). This is because the relative prices used as weights for any period other than the reference year differ from those of the reference year. A measure of the extent of such differences is provided by a “residual” line, which indicates the difference between GDP (or other major aggregate) and the sum of the most detailed components in the table. For periods close to the reference year, when there usually has not been much change in the relative prices that are used as weights, the residuals tend to be small, and the chained-dollar estimates can be used to approximate the contributions to growth and to aggregate the detailed estimates. For periods further from the reference year, the residuals tend to be larger, and the chained-dollar estimates are less useful for analyses of contributions to growth. Thus, the contributions to percent change shown in table 2 provide a better measure of the composition of GDP growth. In particular, for components for which relative prices are changing rapidly, calculation of contributions using chained-dollar estimates may be misleading even just a few years from the reference year. Reference: “Chained-Dollar Indexes: Issues, Tips on Their Use, and Upcoming Changes,” November 2003 Survey, pp. 8-16.
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