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Technical Note
Gross Domestic Product
Third Quarter of 2007 (Final)
December 20, 2007
This technical note provides background information about the source data and
estimating methods used to produce the estimates presented in the GDP news release.
The complete set of estimates for the third quarter is available on BEA's Web site at
www.bea.gov; a brief summary of "highlights" is also posted on the Web site. In a few
weeks, the estimates will be published in BEA's monthly journal, the Survey of Current
Business, along with a more detailed analysis of the estimates ("GDP and the
Economy").
Sources of Revision to Components of Real GDP
Real GDP growth in the third quarter was 4.9 percent (annual rate), the same growth
rate as in the preliminary estimate. A small upward revision to consumer spending was
offset by a small downward revision to inventory investment:
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•
The upward revision to consumer spending primarily reflected revised Census
Bureau retail sales data for September.
The downward revision to inventory investment primarily reflected revised BEA
motor vehicle estimates for September and revised Census inventory data for
September.
The price index for gross domestic purchases increased 1.8 percent in the third quarter,
which was 0.2 percentage point more than the preliminary estimate. The revision
primarily reflected an upward revision to the implicit price for banking services that was
based on newly available Federal Reserve Board tabulations of Call Report data for the
third quarter.
Corporate Profits
Profits from current production decreased $20.5 billion, or 1.2 percent (quarterly rate), in
the third quarter, which compares with a decrease of $19.3 billion in the preliminary
estimate. In the third quarter, real gross value added of nonfinancial corporate business
increased, prices per unit of real value added decreased, unit labor costs increased, unit
nonlabor costs decreased, and unit profits decreased.
Brent R. Moulton
Associate Director for National Economic Accounts
Bureau of Economic Analysis
(202) 606-9606
@FedFRASER