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News Release: Gross Domestic Product and Corporate Profits

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      EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, THURSDAY, SEPTEMBER 28, 2006

Virginia H. Mannering:  (202)   606-5304   (GDP)                                     BEA 06-43
Greg Key:               (202)   606-9727   (Profits)
Recorded message:       (202)   606-5306



                       GROSS DOMESTIC PRODUCT:  SECOND QUARTER 2006 (FINAL)
                          CORPORATE PROFITS:  SECOND QUARTER 2006 (FINAL)

	Real gross domestic product -- the output of goods and services produced by labor and property 
located in the United States -- increased at an annual rate of 2.6 percent in the second quarter of 2006, 
according to final estimates released by the Bureau of Economic Analysis.  In the first quarter, real GDP 
increased 5.6 percent. 

 	The GDP estimates released today are based on more complete source data than were available for 
the preliminary estimates issued last month.  In the preliminary estimates, the increase in real GDP was      
2.9 percent (see "Revisions" on page 3).

	The increase in real GDP in the second quarter primarily reflected positive contributions from  
personal consumption expenditures (PCE) for services, exports, nonresidential structures, state and local 
government spending, and private inventory investment that were partly offset by negative contributions 
from residential fixed investment and federal government spending.  Imports, which are a subtraction in 
the calculation of GDP, increased.
	
	The deceleration in real GDP growth in the second quarter primarily reflected downturns in PCE 
for durable goods, in equipment and software, and in federal government spending, decelerations in PCE 
for nondurable goods and in exports, and a larger decrease in residential fixed investment that were 
partly offset by a deceleration in imports, an acceleration in PCE for services, and an upturn in private 
inventory investment.

        Final sales of computers contributed 0.04 percentage point to the second-quarter growth in real
GDP after contributing 0.07 percentage point to the first-quarter growth.  Motor vehicle output 
subtracted 0.31 percentage point from the second-quarter growth in real GDP after contributing 0.12 
percentage point to the first-quarter growth.  

	The price index for gross domestic purchases, which measures prices paid by U.S. residents, 
increased 4.0 percent in the second quarter, the same as in the preliminary estimate; this index increased 
2.7 percent in the first quarter.  Excluding food and energy prices, the price index for gross domestic 
purchases increased 2.9 percent in the second quarter, compared with an increase of 3.0 percent in the 
first. 

	Real personal consumption expenditures increased 2.6 percent in the second quarter, compared 
with an increase of 4.8 percent in the first.  Real nonresidential fixed investment increased 4.4 percent, 
compared with an increase of 13.7 percent.  Nonresidential structures increased 20.3 percent, compared 
with an increase of 8.7 percent.  Equipment and software decreased 1.4 percent, in contrast to an 
increase of 15.6 percent.  Real residential fixed investment decreased 11.1 percent, compared with a 
decrease of 0.3 percent.

	Real exports of goods and services increased 6.2 percent in the second quarter, compared with an 
increase of 14.0 percent in the first.  Real imports of goods and services increased 1.4 percent, compared 
with an increase of 9.1 percent.

	Real federal government consumption expenditures and gross investment decreased 4.5 percent in 
the second quarter, in contrast to an increase of 8.8 percent in the first.  National defense decreased 2.0 
percent, in contrast to an increase of 8.9 percent.  Nondefense decreased 9.3 percent, in contrast to an 
increase of 8.5 percent.  Real state and local government consumption expenditures and gross 
investment increased 4.0 percent, compared with an increase of 2.7 percent.

	The real change in private inventories added 0.44 percentage point to the second-quarter change in 
real GDP, after subtracting 0.03 percentage point from the first-quarter change.  Private businesses 
increased inventories $53.7 billion in the second quarter, following increases of $41.2 billion in the first 
quarter and $43.5 billion in the fourth.

	Real final sales of domestic product -- GDP less change in private inventories -- increased 2.1 
percent in the second quarter, compared with an increase of 5.6 percent in the first.


Gross domestic purchases

	Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever 
produced -- increased 2.0 percent in the second quarter, compared with an increase of 5.3 percent in the 
first. 


Gross national product

	Real gross national product -- the goods and services produced by the labor and property supplied 
by U.S. residents -- increased 2.3 percent in the second quarter, compared with an increase of 6.1 
percent in the first.  GNP includes, and GDP excludes, net receipts of income from the rest of the world, 
which decreased $5.6 billion in the second quarter after increasing $14.4 billion in the first; in the 
second quarter, receipts increased $45.0 billion, and payments increased $50.6 billion.

 
Current-dollar GDP

	Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 
5.9 percent, or $188.9 billion, in the second quarter to a level of $13,197.3 billion.  In the first quarter, 
current-dollar GDP increased 9.0 percent, or $277.9 billion.


Revisions

	The final estimate of the second-quarter increase in real GDP is 0.3 percentage point, or $9.5 
billion, lower than the preliminary estimate issued last month.  The downward revision to the percentage 
change in real GDP primarily reflected a downward revision to private inventory investment, an upward 
revision to imports of services, and a downward revision to residential fixed investment that were partly 
offset by an upward revision to PCE for services.


                                            Advance        Preliminary        Final
                                            (Percent change from preceding quarter)

Real GDP...............................       2.5              2.9             2.6
Current-dollar GDP.....................       5.8              6.3             5.9
Gross domestic purchases price index...       4.0              4.0             4.0



Corporate Profits

	Profits from current production (corporate profits with inventory valuation and capital 
consumption adjustments) increased $22.7 billion in the second quarter, compared with an increase of 
$175.6 billion in the first quarter.  Current-production cash flow (net cash flow with inventory valuation 
and capital consumption adjustments) -- the internal funds available to corporations for investment -- 
increased $1.1 billion in the second quarter, compared with an increase of $125.3 billion in the first.

 	Taxes on corporate income increased $19.2 billion in the second quarter, compared with an 
increase of $32.3 billion in the first.  Profits after tax with inventory valuation and capital consumption 
adjustments increased $3.6 billion in the second quarter, compared with an increase of $143.2 billion in 
the first.  Dividends increased $15.4 billion, compared with an increase of $14.7 billion; current-
production undistributed profits decreased $11.8 billion, in contrast to an increase of $128.5 billion.


	Domestic profits of financial corporations increased $41.7 billion in the second quarter, compared 
with an increase of $51.4 billion in the first.  Domestic profits of nonfinancial corporations decreased 
$32.8 billion in the second quarter, in contrast to an increase of $94.5 billion in the first.  In the second 
quarter, real gross corporate value added increased, and profits per unit of real value added decreased.  
The decrease in unit profits reflected increases in both the unit labor and nonlabor costs corporations 
incurred that were partly offset by an increase in unit prices.

	The rest-of-the-world component of profits increased $13.8 billion in the second quarter, 
compared with an increase of $29.8 billion in the first.  This measure is calculated as (1) receipts by U.S. 
residents of earnings from their foreign affiliates plus dividends received by U.S. residents from 
unaffiliated foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign 
parents plus dividends paid by U.S. corporations to unaffiliated foreign residents.  The second-quarter 
increase was accounted for by a larger increase in receipts than in payments.

	Profits before tax 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 increased, while domestic profits of nonfinancial 
corporations decreased.  The decrease in nonfinancial corporations reflected decreases in ?other? 
nonfinancial industries, in manufacturing, in wholesale trade, in information, and in retail trade that were 
partly offset by increases in transportation and warehousing and in utilities.  Within manufacturing, the 
decrease reflected decreases in all the industries shown except petroleum and coal products, and 
computer and electronic products.

	Profits before tax increased $70.9 billion in the second quarter, compared with an increase of 
$142.3 billion in the first.  The before-tax measure of profits does not reflect, as does profits from 
current production, the capital consumption and inventory valuation adjustments.  These adjustments 
convert depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost 
basis to the current-cost measures used in the national income and product accounts.  The capital 
consumption adjustment decreased $12.2 billion in the second quarter (from -$148.6 billion to -$160.8 
billion), in contrast to an increase of $17.0 billion in the first.  The inventory valuation adjustment 
decreased $36.0 billion (from -$22.9 billion to -$58.9 billion), in contrast to an increase of $16.3 billion. 


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                                         Next release -- October 27, 2006, at 8:30 A.M. EDT for:
                                         Gross Domestic Product:  Third Quarter 2006 (Advance)                                                                                

                                                               - more -


                                                      
                                    Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2003   2004   2005 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06  II 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.5    3.9    3.2    2.4     .2    1.2    3.5    7.5    2.7    3.9    4.0    3.1    2.6    3.4    3.3    4.2    1.8    5.6    2.6

Personal consumption expenditures...    2.8    3.9    3.5    2.3    1.4    2.1    3.6    5.8    2.3    4.7    2.9    3.9    4.3    2.7    4.2    3.9     .8    4.8    2.6
  Durable goods.....................    5.8    6.4    5.5   11.5   -5.2     .4   16.8   16.7     .7    6.1    1.7    8.7    6.1    2.4   12.8    9.0  -12.3   19.8    -.1
  Nondurable goods..................    3.2    3.6    4.5     .3    3.6    3.8    2.3    7.7    1.8    4.3    1.7    3.7    5.4    5.2    4.9    3.4    3.9    5.9    1.4
  Services..........................    1.9    3.5    2.6    1.3    1.8    1.5    1.8    2.9    2.8    4.6    3.8    3.1    3.4    1.6    2.3    3.2    2.0    1.6    3.7

Gross private domestic investment...    3.6    9.8    5.4    5.8   -1.0   -1.3    3.3   17.7    9.3    4.8   21.7    2.0    5.1    8.2   -3.6    5.2   16.2    7.8    1.0
  Fixed investment..................    3.4    7.3    7.5    -.7   -1.4    -.4   10.6   13.6    5.5    2.2   11.7    7.6    4.9    7.8   10.5    6.3    2.8    8.2   -1.6
    Nonresidential..................    1.0    5.9    6.8   -2.0   -5.0   -2.6   10.7    9.4    2.8    1.7    7.2   10.3    8.3    6.0    5.2    5.9    5.2   13.7    4.4
      Structures....................   -4.1    2.2    1.1  -15.5   -5.3   -6.9   14.7    -.8   -4.7    3.3    6.9    3.1   -2.0    5.3   -2.0   -7.0   12.0    8.7   20.3
      Equipment and software........    2.8    7.3    8.9    3.3   -4.9   -1.0    9.3   13.2    5.6    1.2    7.3   13.0   12.3    6.3    7.9   11.0    2.8   15.6   -1.4
    Residential.....................    8.4    9.9    8.6    2.0    6.4    4.1   10.5   22.2   10.6    3.1   19.8    3.2    -.6   11.1   20.0    7.1    -.9    -.3  -11.1
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    1.3    9.2    6.8    2.9   -3.1   -5.3   -1.7   11.4   20.8    7.2    6.2    4.8    9.9    4.7    9.4    3.2    9.6   14.0    6.2
    Goods...........................    1.8    9.0    7.5    2.2   -9.1    2.0   -1.2    8.8   19.8    7.1    6.4    8.3    6.1    5.5   12.8    3.7   11.5   17.3    6.0
    Services........................     .0    9.7    5.1    4.6   11.7  -20.0   -2.8   17.5   23.1    7.5    5.6   -2.8   19.2    2.9    2.0    2.1    5.5    6.7    6.7
  Imports...........................    4.1   10.8    6.1    5.7    9.0   -5.0    4.1    3.7   17.6   10.2   16.0    4.4   12.0    4.1    1.4    2.5   13.2    9.1    1.4
    Goods...........................    4.9   10.9    6.7    6.5    8.1   -3.9    8.6     .6   17.2   10.1   17.7    4.7   12.6    4.9    2.0    2.7   14.1    9.4    -.1
    Services........................     .0   10.0    2.8    1.7   14.0  -10.6  -15.7   21.2   19.6   10.9    7.6    3.1    9.0    -.2   -1.5    1.2    8.3    7.4    9.9

Government consumption expenditures
 and gross investment...............    2.5    1.9     .9    2.3    4.8   -1.4    6.1    1.5     .7    2.9    2.2    1.3   -1.9    1.6    1.1    3.4   -1.1    4.9     .8
  Federal...........................    6.8    4.3    1.5    3.0   10.2     .1   19.7     .4    3.1    7.2    2.5    5.0   -5.2    3.4     .4    9.6   -4.6    8.8   -4.5
    National defense................    8.7    5.9    1.7    4.1   14.8   -4.4   36.3   -5.3    8.1    9.1    2.0    9.1   -9.1    4.5    2.9   11.2   -9.9    8.9   -2.0
    Nondefense......................    3.4    1.2    1.1    1.2    2.1    9.0   -6.4   12.4   -6.0    3.6    3.5   -2.9    3.4    1.2   -4.4    6.2    7.1    8.5   -9.3
  State and local...................     .2     .5     .5    1.9    2.0   -2.2    -.8    2.1    -.6     .5    2.1    -.9     .1     .6    1.5    -.1    1.0    2.7    4.0

Addenda:
  Final sales of domestic product...    2.5    3.5    3.5    1.4     .1    1.3    4.5    6.9    2.1    3.4    2.6    4.0    2.6    3.3    5.6    4.4    -.3    5.6    2.1
  Gross domestic purchases..........    2.8    4.4    3.3    2.8    1.7     .9    4.0    6.6    3.0    4.4    5.5    3.1    3.3    3.4    2.4    4.0    2.7    5.3    2.0
  Final sales to domestic
   purchasers.......................    2.8    4.0    3.6    1.8    1.6    1.1    5.1    6.1    2.5    4.0    4.1    4.0    3.2    3.3    4.6    4.2     .7    5.4    1.6
  Gross national product (GNP)......    2.7    3.8    3.1    2.9    1.0     .8    4.1    7.3    3.5    3.5    2.9    3.3    2.0    3.6    3.0    4.9     .5    6.1    2.3
  Disposable personal income........    2.2    3.6    1.2   -1.6     .2    1.7    5.0    6.3    1.7    3.9    2.4    2.8    7.5   -4.0     .5    -.6    5.5    4.6    1.7

  Current-dollar measures:
    GDP.............................    4.7    6.9    6.3    3.9    2.4    4.4    4.8    9.7    4.9    7.8    7.9    5.3    5.9    7.0    5.8    7.6    5.1    9.0    5.9
    Final sales of domestic product.    4.7    6.5    6.7    3.0    2.4    4.6    5.8    9.1    4.4    7.3    6.4    6.2    5.9    6.9    8.2    7.8    3.0    9.1    5.5
    Gross domestic purchases........    5.2    7.6    6.9    4.4    3.9    5.1    4.7    9.1    4.9    8.9    9.7    5.8    7.0    6.7    5.8    8.5    6.3    8.2    6.1
    Final sales to domestic
     purchasers.....................    5.2    7.2    7.2    3.6    3.8    5.3    5.7    8.5    4.4    8.5    8.3    6.7    7.0    6.7    8.1    8.8    4.3    8.2    5.7
    GNP.............................    4.9    6.7    6.2    4.4    3.2    4.0    5.4    9.6    5.8    7.4    6.7    5.4    5.3    7.2    5.6    8.4    3.8    9.6    5.7
    Disposable personal income......    4.2    6.4    4.1     .2    1.9    4.8    5.7    8.9    3.2    7.7    6.0    4.7   10.7   -1.8    3.6    3.5    8.6    6.8    5.8
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised
  See "Explanatory Note" at the end of the tables.

                                                Table 2.--Contributions to Percent Change in Real Gross Domestic Product
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2003   2004   2005 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06  II 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

    Gross domestic product..........    2.5    3.9    3.2    2.4     .2    1.2    3.5    7.5    2.7    3.9    4.0    3.1    2.6    3.4    3.3    4.2    1.8    5.6    2.6

Percentage points at annual rates:

  Personal consumption expenditures.   1.94   2.71   2.44   1.57    .97   1.41   2.53   4.13   1.59   3.30   2.07   2.74   2.97   1.94   2.94   2.76    .53   3.38   1.81

    Durable goods...................    .50    .54    .45    .98   -.47    .03   1.35   1.39    .06    .51    .14    .71    .50    .20   1.02    .74  -1.08   1.50   -.01
      Motor vehicles and parts......    .12    .07    .02    .89   -.75   -.04    .65    .46   -.29    .09   -.14    .22    .17   -.29    .50    .38  -1.51    .60   -.04
      Furniture and household
       equipment....................    .27    .35    .29    .06    .21    .05    .49    .67    .27    .33    .28    .36    .21    .27    .28    .40    .33    .65    .10
      Other.........................    .10    .11    .14    .02    .07    .02    .21    .26    .08    .10    .01    .13    .12    .21    .24   -.03    .10    .26   -.06

    Nondurable goods................    .64    .73    .90    .06    .70    .75    .45   1.53    .36    .86    .34    .74   1.07   1.04    .98    .70    .79   1.20    .30
      Food..........................    .23    .33    .51    .00    .20    .39    .04    .61    .02    .54    .16    .28    .70    .53    .55    .61    .39    .64    .19
      Clothing and shoes............    .14    .14    .17   -.05    .31   -.02    .29    .31   -.02    .32   -.14    .18    .19    .17    .25    .08    .27    .23   -.10
      Gasoline, fuel oil, and other
       energy goods.................    .01    .02   -.01    .04   -.04   -.02   -.02    .10    .06    .00    .00   -.04    .01    .12   -.10   -.15   -.06   -.03    .02
      Other.........................    .26    .24    .23    .07    .23    .39    .14    .52    .30    .00    .32    .32    .16    .21    .28    .16    .19    .36    .19

    Services........................    .80   1.45   1.09    .54    .74    .63    .73   1.21   1.18   1.92   1.59   1.30   1.39    .70    .94   1.32    .83    .67   1.52
      Housing.......................    .10    .40    .30   -.11   -.07    .11    .18    .35    .40    .49    .42    .37    .32    .29    .28    .24    .18    .24    .25
      Household operation...........    .06    .10    .08   -.11    .19    .00    .00    .02    .17    .11    .10    .06    .25    .01    .04    .09    .01   -.58    .31
        Electricity and gas.........    .03    .02    .04   -.07    .23   -.05   -.08   -.03    .12    .06   -.06   -.07    .25    .00    .00    .03    .03   -.58    .23
        Other household operation...    .03    .08    .04   -.04   -.04    .05    .08    .05    .05    .05    .16    .13    .00    .01    .04    .06   -.02    .00    .08
      Transportation................    .00    .03    .00   -.07   -.01    .07   -.03    .03    .02    .05    .06    .00    .04    .02   -.03   -.04    .00    .10    .04
      Medical care..................    .45    .37    .43    .59    .59    .47    .28    .28    .28    .33    .47    .53    .43    .32    .40    .53    .44    .52    .31
      Recreation....................    .10    .14    .08    .04    .16    .02    .15    .13    .16    .18    .13    .09    .05    .13    .05    .05    .04    .09    .02
      Other.........................    .09    .41    .20    .20   -.12   -.04    .16    .40    .15    .76    .42    .24    .30   -.07    .20    .44    .16    .31    .58

  Gross private domestic investment.    .54   1.49    .87    .87   -.14   -.16    .51   2.56   1.39    .74   3.17    .32    .82   1.32   -.61    .84   2.51   1.31    .17

    Fixed investment................    .51   1.11   1.17   -.12   -.21   -.04   1.52   2.00    .83    .34   1.72   1.16    .77   1.22   1.62   1.02    .46   1.34   -.27
      Nonresidential................    .10    .58    .67   -.21   -.52   -.24   1.01    .92    .29    .18    .69    .97    .81    .59    .51    .59    .52   1.36    .45
        Structures..................   -.11    .06    .03   -.44   -.14   -.18    .35   -.02   -.12    .08    .17    .08   -.05    .14   -.06   -.20    .31    .25    .56
        Equipment and software......    .21    .52    .64    .23   -.38   -.06    .66    .95    .41    .10    .52    .90    .86    .45    .56    .78    .21   1.11   -.10
          Information processing
           equipment and software...    .22    .36    .30    .23   -.38    .31    .13    .82    .70    .30    .05    .21    .33    .43    .29    .26    .25    .74   -.04
            Computers and peripheral
             equipment..............    .09    .10    .12    .16   -.04    .12    .00    .26    .21   -.03   -.03    .21    .17    .10    .10    .06    .16    .15    .03
            Software................    .07    .15    .09    .12   -.17    .06    .05    .32    .20    .17    .03    .12    .16    .03    .12    .07    .04    .18    .07
            Other...................    .05    .11    .10   -.05   -.17    .12    .08    .23    .29    .16    .05   -.12    .00    .30    .06    .13    .04    .40   -.14
          Industrial equipment......    .04   -.05    .10    .08    .01    .17    .14   -.14   -.22   -.09   -.05    .19    .05    .16   -.07    .23    .19   -.05    .16
          Transportation equipment..   -.12    .14    .15   -.07   -.02   -.57    .31    .01   -.13   -.08    .46    .39    .40   -.14    .11    .27   -.31    .31   -.32
          Other equipment...........    .07    .07    .09    .00    .02    .04    .08    .26    .07   -.04    .06    .10    .08    .01    .24    .03    .08    .11    .09
      Residential...................    .41    .53    .50    .09    .30    .20    .51   1.08    .55    .16   1.03    .18   -.04    .63   1.11    .43   -.06   -.02   -.72

    Change in private inventories...    .04    .38   -.30    .98    .08   -.12  -1.01    .56    .56    .40   1.44   -.84    .05    .09  -2.23   -.18   2.05   -.03    .44
      Farm..........................    .03    .07   -.06    .31    .03    .19   -.16   -.06   -.05    .27    .61   -.48   -.38    .16   -.26    .28    .14   -.01   -.09
      Nonfarm.......................    .00    .31   -.24    .67    .04   -.31   -.85    .62    .60    .13    .84   -.35    .43   -.06  -1.97   -.46   1.90   -.02    .54

  Net exports of goods and services.   -.44   -.65   -.26   -.49  -1.52    .21   -.73    .51   -.47   -.73  -1.62   -.20   -.81   -.16    .72   -.06  -1.07   -.04    .42

    Exports.........................    .12    .88    .68    .27   -.31   -.53   -.16   1.02   1.81    .69    .60    .46    .96    .47    .94    .33    .97   1.41    .66
      Goods.........................    .12    .60    .52    .14   -.64    .13   -.08    .55   1.20    .47    .43    .55    .42    .38    .88    .27    .80   1.20    .45
      Services......................    .00    .28    .16    .13    .33   -.65   -.08    .47    .61    .22    .17   -.09    .54    .09    .06    .06    .17    .21    .21

    Imports.........................   -.56  -1.53   -.94   -.76  -1.21    .74   -.57   -.51  -2.29  -1.42  -2.22   -.66  -1.77   -.63   -.22   -.39  -2.04  -1.46   -.24
      Goods.........................   -.56  -1.29   -.87   -.72   -.90    .47   -.97   -.07  -1.86  -1.17  -2.03   -.59  -1.55   -.64   -.26   -.36  -1.84  -1.27    .01
      Services......................    .00   -.24   -.07   -.04   -.31    .27    .40   -.44   -.43   -.25   -.18   -.08   -.22    .01    .04   -.03   -.20   -.19   -.25

  Government consumption expenditures
   and gross investment.............    .47    .36    .17    .43    .89   -.26   1.16    .29    .14    .55    .43    .24   -.37    .31    .21    .64   -.21    .94    .16

    Federal.........................    .44    .30    .11    .20    .64    .01   1.26    .03    .21    .49    .18    .34   -.38    .23    .03    .66   -.33    .61   -.32
      National defense..............    .37    .27    .08    .17    .59   -.20   1.41   -.25    .35    .41    .09    .41   -.45    .21    .13    .52   -.49    .41   -.09
        Consumption expenditures....    .32    .22    .05    .07    .67   -.22   1.30   -.32    .31    .40    .00    .34   -.44    .25    .03    .45   -.47    .37   -.17
        Gross investment............    .05    .05    .03    .10   -.08    .02    .12    .07    .05    .00    .10    .08   -.01   -.04    .10    .07   -.02    .05    .08
      Nondefense....................    .08    .03    .03    .03    .05    .21   -.16    .28   -.14    .09    .08   -.07    .08    .03   -.11    .14    .16    .20   -.23
       Consumption expenditures.....    .07    .03    .00    .11    .07    .19   -.21    .27   -.12    .11    .03   -.06    .05    .01   -.09    .08    .05    .16   -.10
       Gross investment.............    .01    .00    .02   -.08   -.02    .01    .06    .01   -.03   -.03    .05   -.01    .03    .01   -.02    .06    .11    .03   -.12

    State and local.................    .02    .06    .06    .23    .25   -.27   -.10    .26   -.07    .06    .25   -.10    .01    .08    .18   -.01    .13    .33    .48
        Consumption expenditures....    .00    .10    .08    .17    .15   -.19   -.07   -.04    .07    .19    .15    .08    .15    .02    .05    .14    .09    .17    .20
        Gross investment............    .02   -.04   -.02    .06    .10   -.09   -.02    .30   -.15   -.13    .11   -.18   -.14    .06    .13   -.15    .03    .16    .28

Addenda:
    Goods...........................   1.00   1.56   1.43   1.69  -1.74   1.27    .56   5.00    .81   1.20    .99   1.56   1.43   1.51   1.09   2.07    .97   3.86   1.12
    Services........................   1.20   1.84   1.31    .98   1.65    .03   2.06   1.15   1.63   2.59   1.74   1.48   1.47   1.07   1.04   2.02    .46   1.39   1.40
    Structures......................    .31    .51    .49   -.29    .29   -.09    .85   1.33    .22    .05   1.31    .06   -.29    .82   1.13    .09    .33    .33    .04
    Motor vehicle output............    .05    .12    .20    .40    .01   -.46    .36    .30   -.23    .33   -.24    .52    .06    .38   -.03    .70   -.71    .12   -.31
    Final sales of computers........    .15    .06    .16    .20    .11    .12   -.02    .50    .15   -.13   -.14    .15    .26    .16    .20    .08    .20    .07    .04
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised
  See "Explanatory Note" at the end of the tables.

                                      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                                    Seasonally adjusted                Change from preceding
                                                          at annual rates                                        at annual rates                          period
                                            --------------------------------------------          --------------------------------------------  -------------------------
                                       2005    II 05   III 05    IV 05     I 06    II 06r    2005    II 05   III 05    IV 05     I 06    II 06r    2005     I 06    II 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 12,455.8 12,346.1 12,573.5 12,730.5 13,008.4 13,197.3 11,048.6 11,001.8 11,115.1 11,163.8 11,316.4 11,388.1    345.1    152.6     71.7

Personal consumption expenditures.  8,742.4  8,674.6  8,847.3  8,927.8  9,079.2  9,228.1  7,841.2  7,819.8  7,895.3  7,910.2  8,003.8  8,055.0    264.1     93.6     51.2

  Durable goods...................  1,033.1  1,042.3  1,057.3  1,019.6  1,064.1  1,061.8  1,145.3  1,150.8  1,175.9  1,137.9  1,190.5  1,190.3     59.6     52.6      -.2
    Motor vehicles and parts......    448.2    459.6    468.1    421.6    442.7    441.7    452.9    463.0    474.6    426.3    445.1    443.7      2.5     18.8     -1.4
    Furniture and household
     equipment....................    377.2    374.4    380.0    386.0    402.3    401.3    490.6    482.0    497.7    511.5    538.5    542.9     44.6     27.0      4.4
    Other.........................    207.7    208.3    209.2    212.0    219.1    218.8    212.6    214.2    213.1    216.3    224.6    222.5     17.0      8.3     -2.1

  Nondurable goods................  2,539.3  2,508.6  2,584.9  2,613.5  2,658.2  2,721.4  2,276.8  2,268.4  2,287.6  2,309.6  2,342.8  2,351.1     97.6     33.2      8.3
    Food..........................  1,201.4  1,191.9  1,214.7  1,233.7  1,262.3  1,274.0  1,065.7  1,058.5  1,074.9  1,085.7  1,103.4  1,108.8     54.7     17.7      5.4
    Clothing and shoes............    341.8    341.5    341.3    349.1    355.4    355.1    372.7    371.1    373.9    383.1    391.1    387.4     21.8      8.0     -3.7
    Gasoline, fuel oil, and other
     energy goods.................    302.1    285.5    331.0    322.1    316.2    359.1    199.5    200.7    197.8    196.6    196.0    196.3     -1.0      -.6       .3
    Other.........................    694.0    689.7    698.0    708.6    724.2    733.3    643.9    642.2    646.7    652.4    662.6    668.3     25.4     10.2      5.7

  Services........................  5,170.0  5,123.7  5,205.1  5,294.7  5,356.8  5,444.9  4,436.6  4,420.0  4,454.5  4,476.7  4,494.5  4,535.4    112.7     17.8     40.9
    Housing.......................  1,304.1  1,297.2  1,311.7  1,326.6  1,345.4  1,370.1  1,122.6  1,120.0  1,126.4  1,131.2  1,137.6  1,144.5     31.0      6.4      6.9
    Household operation...........    483.0    474.3    484.3    506.1    494.8    499.1    418.0    416.9    419.4    419.8    404.3    412.5      8.7    -15.5      8.2
      Electricity and gas.........    199.8    192.1    199.4    219.9    206.2    206.9    153.8    153.2    154.0    154.7    141.7    147.0      4.0    -13.0      5.3
      Other household operation...    283.2    282.2    285.0    286.2    288.6    292.2    264.1    263.7    265.4    264.9    264.8    267.0      4.6      -.1      2.2
    Transportation................    320.4    318.8    322.3    325.9    330.4    335.9    284.4    284.8    283.6    283.5    286.3    287.5       .4      2.8      1.2
    Medical care..................  1,493.4  1,478.3  1,505.0  1,534.0  1,557.2  1,578.2  1,260.9  1,253.8  1,267.5  1,279.0  1,292.6  1,300.9     43.6     13.6      8.3
    Recreation....................    360.6    357.9    362.6    367.7    372.4    377.2    313.1    312.5    313.9    315.1    317.5    318.1      8.3      2.4       .6
    Other.........................  1,208.4  1,197.1  1,219.1  1,234.4  1,256.5  1,284.3  1,036.2  1,030.6  1,042.2  1,046.5  1,054.9  1,070.6     20.2      8.4     15.7

Gross private domestic investment.  2,057.4  2,009.1  2,052.6  2,154.5  2,214.8  2,237.1  1,866.3  1,832.6  1,855.9  1,927.0  1,963.6  1,968.5     95.7     36.6      4.9

  Fixed investment................  2,036.2  2,016.7  2,067.9  2,105.8  2,167.7  2,174.8  1,842.0  1,835.8  1,864.2  1,877.3  1,914.6  1,906.8    128.1     37.3     -7.8
    Nonresidential................  1,265.7  1,251.8  1,276.7  1,304.3  1,359.2  1,384.3  1,223.8  1,214.8  1,232.4  1,248.2  1,288.8  1,302.8     78.0     40.6     14.0
      Structures..................    338.6    332.0    336.3    359.7    378.2    406.3    251.5    251.7    247.1    254.2    259.6    271.9      2.8      5.4     12.3
      Equipment and software......    927.1    919.8    940.4    944.7    981.0    977.9    984.9    974.8  1,000.6  1,007.6  1,044.8  1,041.2     80.7     37.2     -3.6
        Information processing
         equipment and software...    454.3    452.3    456.6    461.3    482.4    479.9    552.6    547.9    557.7    567.3    595.9    594.3     43.3     28.6     -1.6
          Computers and peripheral
           equipment..............     85.1     85.3     83.9     85.9     88.0     85.9    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    194.0    193.8    195.6    196.9    203.6    207.0    206.2    205.7    208.0    209.5    215.6    217.8     11.2      6.1      2.2
          Other...................    175.2    173.3    177.2    178.4    190.8    187.1    193.6    191.5    196.0    197.5    211.6    206.7     12.9     14.1     -4.9
        Industrial equipment......    155.1    149.5    157.0    163.9    163.4    170.1    143.5    138.4    144.9    150.4    149.0    153.9     10.8     -1.4      4.9
        Transportation equipment..    158.3    158.0    165.0    154.6    165.7    155.9    145.4    144.6    152.3    143.2    152.2    142.7     16.6      9.0     -9.5
        Other equipment...........    159.4    159.9    161.8    164.9    169.4    172.1    147.3    148.0    148.8    151.2    154.3    157.1      9.7      3.1      2.8
    Residential...................    770.4    764.9    791.2    801.5    808.5    790.6    608.0    609.9    620.4    618.9    618.5    600.5     48.1      -.4    -18.0

  Change in private inventories...     21.3     -7.6    -15.3     48.6     47.2     62.3     19.6     -7.4    -12.7     43.5     41.2     53.7    -33.8     -2.3     12.5
    Farm..........................       .3     -6.7      1.3      5.8      5.4      2.3       .2     -5.8      1.1      4.8      4.3      1.9     -5.9      -.5     -2.4
    Nonfarm.......................     21.0      -.9    -16.6     42.8     41.8     59.9     19.6     -1.0    -14.0     38.6     36.8     52.2    -27.4     -1.8     15.4

Net exports of goods and services.   -716.7   -686.4   -728.8   -775.4   -765.2   -781.8   -619.2   -606.1   -607.6   -636.6   -636.6   -624.2    -28.3       .0     12.4

  Exports.........................  1,303.1  1,293.8  1,312.4  1,352.4  1,405.4  1,448.1  1,196.1  1,191.0  1,200.5  1,228.4  1,269.3  1,288.5     75.7     40.9     19.2
    Goods.........................    907.5    902.6    913.9    944.3    989.3  1,019.1    843.2    839.7    847.5    870.8    906.2    919.5     58.8     35.4     13.3
    Services......................    395.6    391.2    398.5    408.1    416.0    429.0    352.9    351.2    353.0    357.8    363.6    369.5     17.0      5.8      5.9

  Imports.........................  2,019.9  1,980.2  2,041.2  2,127.8  2,170.6  2,229.8  1,815.3  1,797.1  1,808.1  1,865.0  1,905.9  1,912.7    104.0     40.9      6.8
    Goods.........................  1,699.0  1,662.4  1,719.1  1,799.3  1,832.6  1,879.0  1,549.9  1,533.6  1,543.9  1,595.8  1,631.9  1,631.7     97.7     36.1      -.2
    Services......................    320.9    317.8    322.1    328.5    338.1    350.8    267.5    265.5    266.3    271.7    276.6    283.2      7.2      4.9      6.6

Government consumption expenditures
 and gross investment.............  2,372.8  2,348.9  2,402.4  2,423.6  2,479.6  2,513.9  1,958.0  1,952.6  1,968.8  1,963.5  1,987.1  1,991.2     17.4     23.6      4.1

  Federal.........................    878.3    868.4    895.8    886.2    921.7    919.7    727.5    721.6    738.2    729.6    745.1    736.6     10.9     15.5     -8.5
    National defense..............    589.3    584.3    605.0    590.9    613.5    616.5    483.6    481.1    494.1    481.4    491.8    489.3      8.2     10.4     -2.5
      Consumption expenditures....    516.9    512.1    530.9    516.9    537.7    537.7    413.3    410.9    421.9    410.0    419.0    414.7      5.0      9.0     -4.3
      Gross investment............     72.4     72.2     74.2     74.1     75.8     78.8     71.2     71.2     73.2     72.6     74.0     76.5      3.7      1.4      2.5
    Nondefense....................    289.0    284.1    290.7    295.3    308.2    303.2    243.7    240.1    243.8    248.0    253.1    247.0      2.7      5.1     -6.1
      Consumption expenditures....    251.7    248.7    253.4    254.2    265.9    264.6    207.3    205.4    207.5    208.7    212.8    210.1       .3      4.1     -2.7
      Gross investment............     37.4     35.4     37.4     41.1     42.4     38.6     36.7     34.8     36.6     40.1     41.1     37.2      2.8      1.0     -3.9

  State and local.................  1,494.4  1,480.5  1,506.6  1,537.4  1,557.9  1,594.2  1,230.4  1,230.9  1,230.5  1,233.7  1,242.0  1,254.4      6.5      8.3     12.4
      Consumption expenditures....  1,207.2  1,192.8  1,217.8  1,243.4  1,256.2  1,280.7    988.0    986.0    989.5    991.9    996.1  1,001.2      8.4      4.2      5.1
      Gross investment............    287.3    287.7    288.7    294.0    301.7    313.5    242.1    244.7    240.7    241.6    245.7    253.1     -2.0      4.1      7.4

Residual..........................    .....    .....    .....    .....    .....    .....    -42.6    -39.1    -47.1    -53.7    -78.7    -77.6    .....    .....    .....

Addenda:
  Final sales of domestic product. 12,434.6 12,353.7 12,588.8 12,681.9 12,961.2 13,135.1 11,025.2 11,005.3 11,123.5 11,115.5 11,269.0 11,328.0    376.9    153.5     59.0
  Gross domestic purchases........ 13,172.5 13,032.6 13,302.3 13,505.9 13,773.6 13,979.1 11,659.7 11,599.9 11,714.6 11,792.9 11,946.3 12,005.9    373.2    153.4     59.6
  Final sales to domestic
   purchasers..................... 13,151.3 13,040.2 13,317.6 13,457.3 13,726.4 13,916.8 11,636.1 11,603.2 11,722.8 11,744.6 11,898.7 11,945.9    405.0    154.1     47.2

  Gross domestic product.......... 12,455.8 12,346.1 12,573.5 12,730.5 13,008.4 13,197.3 11,048.6 11,001.8 11,115.1 11,163.8 11,316.4 11,388.1    345.1    152.6     71.7
  Plus: Income receipts from
   the rest of the world..........    513.3    489.0    527.2    564.9    603.3    661.4    456.9    438.0    467.2    496.1    526.4    571.4     80.2     30.3     45.0
  Less: Income payments to
   the rest of the world..........    481.5    460.6    475.0    552.4    574.3    638.6    427.2    411.3    419.9    483.8    499.7    550.3     93.9     15.9     50.6
  Equals: Gross national product.. 12,487.7 12,374.6 12,625.7 12,743.0 13,037.4 13,220.1 11,077.9 11,028.2 11,162.0 11,175.6 11,342.7 11,408.5    331.1    167.1     65.8

  Net domestic product............ 10,851.0 10,855.1 10,675.5 11,168.0 11,460.3 11,624.6  9,557.2  9,603.5  9,371.6  9,727.9  9,896.5  9,959.8    237.4    168.6     63.3
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised
  Note.--Users are cautioned that particularly for components that
exhibit rapid change in prices relative to other prices in the
economy, the chained-dollar estimates should not be used to measure
the component's relative importance or its contribution to the
growth rate of more aggregate series.  For accurate estimates of
the contributions to percent changes in real GDP, 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
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2003   2004   2005 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06  II 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.1    2.8    3.0    1.6    2.2    3.1    1.3    2.1    2.2    3.7    3.7    2.1    3.2    3.5    2.4    3.3    3.3    3.3    3.3

Personal consumption expenditures...    2.0    2.6    2.9    1.8    1.7    3.1     .7    2.4    1.5    3.7    3.6    1.9    3.0    2.3    3.1    4.1    2.9    2.0    4.0
  Durable goods.....................   -3.6   -1.6    -.7   -1.8   -2.7   -4.8   -4.2   -4.0   -3.5     .0     .3   -2.3     .3     .3    -.6   -2.9   -1.3   -1.0    -.8
  Nondurable goods..................    2.0    3.3    3.6     .9    1.2    5.6   -2.9    3.9     .5    5.7    6.0    1.1    4.4    1.1    4.8    9.0     .6    1.1    8.3
  Services..........................    3.2    3.2    3.2    3.0    2.8    3.6    3.5    3.0    3.0    3.5    3.2    3.1    3.0    3.2    3.1    3.2    5.0    3.1    2.9

Gross private domestic investment...    1.5    3.3    3.4     .2    2.9    2.8    -.7    1.3    3.5    4.2    4.5    3.6    3.7    3.0    2.7    3.7    4.3    3.7    3.1
  Fixed investment..................    1.6    3.4    3.5     .2    3.0    3.1    -.8    1.3    3.5    4.3    4.6    3.6    3.7    3.1    2.7    4.0    4.6    3.8    3.0
    Nonresidential..................     .1    1.2    2.6    -.4    1.1     .1   -1.3     .7    1.4    1.0    2.1    1.4    2.6    3.6    2.0    2.2    3.5    3.7    3.0
      Structures....................    3.5    6.2   11.3    4.3    5.1    4.8    -.2    2.3    4.2    6.7    7.8   10.2   12.0   11.6    9.2   13.2   16.8   12.4   10.7
      Equipment and software........   -1.1    -.4    -.4   -2.0    -.3   -1.5   -1.7     .1     .4    -.9     .2   -1.5    -.5     .9    -.4   -1.5   -1.0     .6     .1
    Residential.....................    4.8    7.3    5.1    1.5    7.0    9.4     .2    2.6    7.7   10.5    9.0    7.4    5.6    2.3    3.8    6.9    6.3    3.8    2.9
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    2.2    3.7    3.6    3.0     .6    4.1    1.1     .9    3.0    6.1    5.0    1.8    4.0    4.6    3.6    2.6    2.8    2.3    6.1
    Goods...........................    2.0    3.7    3.1    3.3     .5    3.6    1.6    -.7    4.1    6.5    5.2    1.1    3.6    4.4    3.0    1.3    2.3    2.8    6.2
    Services........................    2.6    3.5    4.8    2.1     .7    5.3    -.2    4.7     .7    5.0    4.5    3.5    5.0    5.1    4.9    5.6    4.2    1.2    6.0
  Imports...........................    3.5    5.0    6.3    3.5     .6   11.3   -3.9    2.6     .4    9.7    7.3    5.5    6.7    2.6    9.2   10.2    4.3    -.7    9.8
    Goods...........................    2.9    5.0    6.5    2.6     .4   11.9   -6.7    2.5     .5   10.1    7.9    5.4    6.8    1.8   10.1   11.3    5.1   -1.6   10.6
    Services........................    6.3    5.1    5.4    8.1    1.4    8.1   11.8    3.1     .0    8.0    4.4    6.2    6.3    6.8    5.1    4.3    -.1    4.5    5.5

Government consumption expenditures
 and gross investment...............    4.1    4.4    5.6    2.6    3.6    9.2    1.3    2.5    2.2    6.8    5.3    4.6    5.7    7.0    4.6    5.9    4.7    4.4    4.8
  Federal...........................    4.2    4.7    4.8    1.0    4.6   11.3    1.5    1.0    1.1   11.5    5.3    2.2    2.9   11.3    2.2    3.3     .4    7.6    3.8
    National defense................    4.7    4.7    5.1    2.4    6.9   10.3    1.4    1.2    1.3   10.5    5.8    2.8    3.2   11.6    2.4    3.4    1.0    6.7    4.1
    Nondefense......................    3.4    4.7    4.1   -1.4     .5   12.9    1.6     .6     .6   13.7    4.3     .9    2.3   10.6    1.8    3.2    -.7    9.5    3.2
  State and local...................    4.1    4.3    6.2    3.4    3.0    8.1    1.1    3.3    2.9    4.1    5.3    6.1    7.4    4.6    6.1    7.4    7.3    2.6    5.4

Addenda:
  Final sales of domestic product...    2.1    2.8    3.0    1.6    2.3    3.2    1.3    2.1    2.2    3.7    3.7    2.1    3.2    3.5    2.4    3.3    3.3    3.3    3.3
  Gross domestic purchases..........    2.3    3.1    3.5    1.7    2.2    4.1     .6    2.2    1.9    4.3    4.1    2.6    3.6    3.2    3.3    4.4    3.5    2.7    4.0
  Final sales to domestic
   purchasers.......................    2.3    3.1    3.5    1.7    2.2    4.2     .6    2.2    1.9    4.3    4.1    2.6    3.6    3.2    3.3    4.4    3.5    2.7    4.0
  Gross national product (GNP)......    2.1    2.8    3.0    1.6    2.2    3.2    1.3    2.1    2.2    3.7    3.7    2.1    3.2    3.5    2.4    3.3    3.2    3.3    3.3

  Implicit price deflators:
    GDP.............................    2.1    2.8    3.0    1.5    2.2    3.2    1.3    2.1    2.2    3.8    3.7    2.1    3.2    3.4    2.5    3.3    3.3    3.3    3.3
    Gross domestic purchases........    2.3    3.1    3.5    1.6    2.2    4.1     .6    2.3    1.9    4.3    4.0    2.6    3.6    3.2    3.4    4.3    3.5    2.7    4.0
    GNP.............................    2.1    2.8    3.0    1.5    2.3    3.1    1.3    2.1    2.2    3.8    3.7    2.1    3.2    3.4    2.5    3.3    3.3    3.3    3.3
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2003       2004       2005      II 05     III 05      IV 05       I 06      II 06r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    104.931    109.031    112.546    112.069    113.223    113.719    115.274    116.004

Personal consumption expenditures..........    108.249    112.430    116.349    116.031    117.152    117.373    118.761    119.521
  Durable goods............................    118.214    125.753    132.666    133.299    136.207    131.799    137.893    137.868
  Nondurable goods.........................    108.002    111.913    116.924    116.496    117.481    118.608    120.313    120.742
  Services.................................    106.363    110.055    112.925    112.501    113.379    113.945    114.398    115.440

Gross private domestic investment..........     92.949    102.026    107.537    105.595    106.938    111.034    113.143    113.429
  Fixed investment.........................     95.110    102.080    109.708    109.339    111.032    111.811    114.033    113.570
    Nonresidential.........................     87.804     92.995     99.326     98.601    100.025    101.308    104.606    105.738
      Structures...........................     77.735     79.418     80.302     80.356     78.903     81.174     82.893     86.819
      Equipment and software...............     91.747     98.400    107.180    106.087    108.889    109.653    113.704    113.313
    Residential............................    113.977    125.281    136.050    136.476    138.821    138.495    138.391    134.368
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     93.599    102.201    109.105    108.637    109.503    112.054    115.783    117.536

Imports of goods and services..............    104.693    115.962    123.007    121.775    122.520    126.377    129.146    129.608

Government consumption expenditures and
 gross investment..........................    110.644    112.720    113.731    113.417    114.358    114.048    115.423    115.657
  Federal..................................    118.712    123.813    125.701    124.668    127.545    126.053    128.728    127.262
  State and local..........................    106.557    107.094    107.660    107.709    107.674    107.954    108.682    109.762

Addenda:
  Final sales of domestic product..........    105.375    109.096    112.958    112.754    113.965    113.883    115.455    116.060
  Gross domestic purchases.................    106.071    110.691    114.351    113.764    114.889    115.657    117.161    117.746
  Final sales to domestic purchasers.......    106.504    110.761    114.755    114.430    115.610    115.825    117.345    117.810
  Gross national product...................    105.067    109.039    112.399    111.894    113.252    113.390    115.085    115.753
-----------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2003       2004       2005      II 05     III 05      IV 05       I 06      II 06r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    106.409    109.429    112.744    112.229    113.139    114.048    114.967    115.905

Personal consumption expenditures
 (PCE).....................................    105.597    108.373    111.493    110.940    112.067    112.873    113.445    114.573
  Durable goods............................     92.366     90.845     90.198     90.570     89.908     89.606     89.385     89.206
  Nondurable goods.........................    104.145    107.617    111.530    110.604    113.016    113.177    113.484    115.769
  Services.................................    109.379    112.863    116.529    115.929    116.858    118.281    119.194    120.059

Gross private domestic investment..........    103.191    106.645    110.284    109.664    110.675    111.853    112.860    113.717
  Fixed investment.........................    103.313    106.811    110.542    109.875    110.946    112.194    113.238    114.074
    Nonresidential.........................     99.591    100.834    103.428    103.055    103.607    104.510    105.471    106.266
      Structures...........................    113.872    120.951    134.647    131.941    136.089    141.476    145.684    149.432
      Equipment and software...............     94.912     94.503     94.134     94.347     93.983     93.754     93.887     93.920
    Residential............................    112.372    120.618    126.714    125.450    127.573    129.536    130.765    131.696
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............    101.429    105.151    108.949    108.648    109.341    110.108    110.737    112.400

Imports of goods and services..............     99.685    104.678    111.268    110.222    112.919    114.117    113.918    116.608

Government consumption expenditures and
 gross investment..........................    109.849    114.718    121.183    120.302    122.029    123.444    124.791    126.262
  Federal..................................    110.094    115.249    120.726    120.361    121.353    121.479    123.721    124.871
  State and local..........................    109.712    114.417    121.463    120.276    122.438    124.620    125.434    127.095

Addenda:
  PCE excluding food and energy............    105.175    107.314    109.559    109.298    109.732    110.418    110.983    111.738
  Market-based PCE\1\......................    104.995    107.393    110.339    109.801    110.952    111.647    112.116    113.272
  Market-based PCE excluding food
   and energy\1\...........................    104.330    105.865    107.713    107.530    107.854    108.375    108.810    109.524
  Final sales of domestic product..........    106.430    109.455    112.783    112.261    113.181    114.101    115.025    115.961
  Gross domestic purchases.................    105.966    109.210    112.981    112.362    113.572    114.541    115.313    116.455
  Final sales to domestic purchasers.......    105.986    109.235    113.021    112.395    113.614    114.594    115.371    116.510
  Gross national product...................    106.401    109.419    112.733    112.218    113.131    114.038    114.958    115.897

  Implicit price deflators:
    Gross domestic product.................    106.404    109.426    112.737    112.219    113.121    114.034    114.951    115.887
    Final sales of domestic product........    106.430    109.455    112.783    112.252    113.173    114.092    115.017    115.952
    Gross domestic purchases...............    105.961    109.207    112.975    112.351    113.553    114.526    115.296    116.435
    Final sales to domestic purchasers.....    105.985    109.235    113.021    112.385    113.604    114.583    115.360    116.499
    Gross national product.................    106.396    109.416    112.726    112.209    113.113    114.025    114.942    115.879
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised
  1. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.  Percentage changes for these series are
included in the addenda to table 8 and in appendix table A.
  See "Explanatory Note" at the end of the tables.

                                               Table 7.--Real Gross Domestic Product: Percent Change from Preceding Year
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           1990    1991    1992    1993    1994    1995    1996    1997    1998    1999    2000    2001    2002    2003    2004    2005
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     1.9     -.2     3.3     2.7     4.0     2.5     3.7     4.5     4.2     4.5     3.7      .8     1.6     2.5     3.9     3.2

Personal consumption expenditures......     2.0      .2     3.3     3.3     3.7     2.7     3.4     3.8     5.0     5.1     4.7     2.5     2.7     2.8     3.9     3.5
  Durable goods........................     -.3    -5.6     5.9     7.8     8.4     4.4     7.8     8.6    11.3    11.7     7.3     4.3     7.1     5.8     6.4     5.5
  Nondurable goods.....................     1.6     -.2     2.0     2.7     3.5     2.2     2.6     2.7     4.0     4.6     3.8     2.0     2.5     3.2     3.6     4.5
  Services.............................     2.9     1.7     3.5     2.8     2.9     2.6     2.9     3.3     4.2     4.0     4.5     2.4     1.9     1.9     3.5     2.6

Gross private domestic investment......    -3.4    -8.1     8.1     8.9    13.6     3.1     8.9    12.4     9.8     7.8     5.7    -7.9    -2.6     3.6     9.8     5.4
  Fixed investment.....................    -2.1    -6.5     5.9     8.6     9.3     6.5     9.0     9.2    10.2     8.3     6.5    -3.0    -5.2     3.4     7.3     7.5
    Nonresidential.....................      .5    -5.4     3.2     8.7     9.2    10.5     9.3    12.1    11.1     9.2     8.7    -4.2    -9.2     1.0     5.9     6.8
      Structures.......................     1.5   -11.1    -6.0     -.7     1.8     6.4     5.6     7.3     5.1     -.4     6.8    -2.3   -17.1    -4.1     2.2     1.1
      Equipment and software...........      .0    -2.6     7.3    12.5    11.9    12.0    10.6    13.8    13.3    12.7     9.4    -4.9    -6.2     2.8     7.3     8.9
    Residential........................    -8.6    -9.6    13.8     8.2     9.6    -3.2     8.0     1.9     7.6     6.0      .8      .4     4.8     8.4     9.9     8.6
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................     9.0     6.6     6.9     3.2     8.7    10.1     8.4    11.9     2.4     4.3     8.7    -5.4    -2.3     1.3     9.2     6.8
    Goods..............................     8.4     6.9     7.5     3.3     9.7    11.7     8.8    14.3     2.2     3.8    11.2    -6.1    -4.0     1.8     9.0     7.5
    Services...........................    10.5     6.0     5.5     3.2     6.3     6.3     7.2     5.9     2.9     5.6     2.9    -3.7     1.9      .0     9.7     5.1
  Imports..............................     3.6     -.6     7.0     8.8    11.9     8.0     8.7    13.6    11.6    11.5    13.1    -2.7     3.4     4.1    10.8     6.1
    Goods..............................     3.0     -.1     9.3    10.1    13.3     9.0     9.3    14.4    11.7    12.4    13.5    -3.2     3.7     4.9    10.9     6.7
    Services...........................     6.5    -2.6    -2.6     2.9     5.7     3.3     5.5     9.4    11.4     6.9    11.1     -.3     2.1      .0    10.0     2.8

Government consumption expenditures
 and gross investment..................     3.2     1.1      .5     -.9      .0      .5     1.0     1.9     1.9     3.9     2.1     3.4     4.4     2.5     1.9      .9
  Federal..............................     2.0     -.2    -1.7    -4.2    -3.7    -2.7    -1.2    -1.0    -1.1     2.2      .9     3.9     7.0     6.8     4.3     1.5
    National defense...................      .0    -1.1    -5.0    -5.6    -4.9    -3.8    -1.4    -2.8    -2.1     1.9     -.5     3.9     7.4     8.7     5.9     1.7
    Nondefense.........................     8.3     2.4     6.9     -.7    -1.2     -.4     -.7     2.6      .7     2.8     3.5     3.9     6.3     3.4     1.2     1.1
  State and local......................     4.1     2.1     2.2     1.4     2.6     2.6     2.3     3.6     3.6     4.7     2.7     3.2     3.1      .2      .5      .5

Addenda:
  Final sales of domestic product......     2.1      .1     3.0     2.6     3.4     3.0     3.7     4.0     4.2     4.5     3.8     1.6     1.2     2.5     3.5     3.5
  Gross domestic purchases.............     1.4     -.8     3.3     3.2     4.4     2.4     3.8     4.8     5.3     5.3     4.4      .9     2.2     2.8     4.4     3.3
  Final sales to domestic purchasers...     1.6     -.6     3.1     3.2     3.8     2.8     3.8     4.3     5.3     5.4     4.5     1.8     1.8     2.8     4.0     3.6
  Gross national product...............     2.0     -.3     3.3     2.7     3.9     2.6     3.7     4.4     4.0     4.6     3.7      .8     1.5     2.7     3.8     3.1
  Real disposable personal income......     1.9      .5     3.4     1.0     2.7     2.8     3.0     3.5     5.8     3.0     4.8     1.9     3.1     2.2     3.6     1.2

  Price indexes:
    Gross domestic purchases...........     4.1     3.3     2.3     2.2     2.1     2.1     1.8     1.4      .6     1.6     2.5     2.0     1.6     2.3     3.1     3.5
    Gross domestic purchases excluding
     food and energy...................     3.7     3.5     2.6     2.3     2.2     2.2     1.5     1.3     1.0     1.4     1.9     1.9     1.9     1.9     2.7     2.8
    GDP................................     3.9     3.5     2.3     2.3     2.1     2.0     1.9     1.7     1.1     1.4     2.2     2.4     1.7     2.1     2.8     3.0
    GDP excluding food and energy......     3.7     3.6     2.5     2.4     2.2     2.1     1.7     1.7     1.2     1.5     2.0     2.1     2.1     1.9     2.7     3.0
    Personal consumption expenditures..     4.6     3.6     2.9     2.3     2.1     2.1     2.2     1.7      .9     1.7     2.5     2.1     1.4     2.0     2.6     2.9
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                         III 02   IV 02    I 03   II 03  III 03   IV 03    I 04   II 04  III 04   IV 04    I 05   II 05  III 05   IV 05    I 06   II 06r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     2.2     1.9     1.5     1.8     3.1     3.7     4.3     4.5     3.4     3.4     3.3     3.1     3.4     3.1     3.7     3.5

Personal consumption expenditures
 (PCE).................................     3.2     1.9     2.0     2.3     3.2     3.4     4.1     3.9     3.5     4.0     3.5     3.8     3.8     2.9     3.4     3.0
  Durable goods........................    11.0     1.2     2.4     5.5     6.7     8.3     9.8     6.1     4.2     5.6     4.7     7.4     7.5     2.5     6.6     3.4
  Nondurable goods.....................     2.4     2.1     2.3     2.5     4.3     3.9     4.0     3.8     2.9     3.8     4.0     4.8     4.7     4.4     4.5     3.6
  Services.............................     2.0     1.9     1.8     1.6     2.0     2.2     3.0     3.5     3.6     3.7     3.0     2.6     2.6     2.3     2.3     2.6

Gross private domestic investment......    -1.4     4.9     1.3     1.6     4.4     7.0     8.6    13.2     9.2     8.2     9.0     2.8     3.6     6.3     6.2     7.4
  Fixed investment.....................    -4.9    -2.5    -1.0     1.9     5.4     7.2     7.9     8.2     6.7     6.6     8.0     7.7     7.4     6.8     6.9     3.9
    Nonresidential.....................    -8.7    -6.5    -3.9      .1     2.9     4.9     6.1     5.2     5.5     6.9     8.0     7.4     6.3     5.6     7.4     7.2
      Structures.......................   -22.0   -14.9   -11.9    -3.9      .1      .2     2.9     1.1     2.0     2.7     3.2     1.0    -1.6     1.8     2.6     8.0
      Equipment and software...........    -3.2    -3.4     -.9     1.5     3.9     6.6     7.2     6.7     6.7     8.3     9.7     9.8     9.3     7.0     9.2     6.8
    Residential........................     4.4     7.0     5.5     5.7    10.6    11.7    11.4    13.7     9.0     6.1     8.1     8.1     9.1     9.0     6.1    -1.5
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................     1.6     3.8     1.1    -1.9      .1     5.8     9.1    11.2     9.6     7.0     6.4     7.2     6.8     6.7     9.0     8.2
    Goods..............................     1.1     1.1     2.0    -1.6     -.1     7.1     8.4    10.4    10.3     7.0     6.6     8.1     7.0     8.3    11.2     9.5
    Services...........................     2.8    10.2    -1.0    -2.4      .5     3.0    10.9    13.2     7.9     7.1     5.9     5.0     6.3     3.1     4.0     5.2
  Imports..............................     6.4     9.7     5.3     3.3     2.8     4.8     8.8    11.7    11.9    10.6     9.0     5.4     4.9     5.2     6.4     6.4
    Goods..............................     7.2     9.9     6.4     4.7     3.2     5.3     9.0    11.2    12.3    11.2     9.8     6.0     5.5     5.8     6.9     6.4
    Services...........................     2.4     8.8      .1    -3.3     1.0     2.2     7.9    14.7    10.1     7.6     4.8     2.5     2.0     1.9     3.7     6.6

Government consumption expenditures
 and gross investment..................     4.9     4.0     2.6     2.9     2.7     1.7     2.8     1.8     1.8     1.1      .8      .5     1.0     1.2     2.1     2.0
  Federal..............................     7.5     7.8     6.3     8.0     7.3     5.5     7.4     3.3     4.4     2.3     1.3      .8     1.9     2.1     3.4     2.1
    National defense...................     7.9     8.4     6.3    11.7     9.1     7.5    11.1     3.3     7.0     2.5     1.4     1.6     2.1     1.9     2.9     1.7
    Nondefense.........................     6.8     6.8     6.5     1.3     4.0     1.9      .6     3.2     -.5     1.8     1.2     -.7     1.5     2.4     4.2     2.9
  State and local......................     3.6     2.1      .7      .2      .3     -.4      .3     1.0      .3      .4      .5      .3      .5      .8     1.3     1.9

Addenda:
  Final sales of domestic product......     1.7      .8     1.1     1.8     3.2     3.7     4.2     3.7     3.0     3.1     3.1     3.9     4.0     3.2     3.8     2.9
  Gross domestic purchases.............     2.8     2.7     2.0     2.3     3.3     3.6     4.5     4.9     4.0     4.1     3.8     3.0     3.3     3.1     3.6     3.5
  Final sales to domestic purchasers...     2.3     1.6     1.7     2.4     3.4     3.7     4.4     4.2     3.6     3.8     3.6     3.8     3.8     3.2     3.7     3.0
  Gross national product...............     2.3     1.6     1.6     2.2     3.3     3.9     4.6     4.3     3.3     2.9     3.0     3.0     3.4     3.0     3.6     3.4
  Real disposable personal income......     1.4     2.9      .6     1.3     3.3     3.7     4.2     3.6     2.7     4.1     2.1     1.6      .8      .3     2.5     2.8

  Price indexes:
    Gross domestic purchases...........     1.6     1.9     2.6     2.1     2.3     2.2     2.2     3.1     3.2     3.7     3.4     3.2     3.6     3.6     3.5     3.6
    Gross domestic purchases excluding
     food and energy...................     1.9     1.7     1.9     1.8     1.9     1.9     2.1     2.6     2.8     3.0     3.0     2.8     2.8     2.8     2.7     2.9
    GDP................................     1.6     1.7     2.1     2.1     2.2     2.2     2.3     2.9     2.9     3.2     3.1     2.8     3.1     3.1     3.1     3.3
    GDP excluding food and energy......     2.0     1.9     2.0     1.9     1.9     1.9     2.1     2.6     2.9     3.1     3.1     2.9     2.9     3.0     2.9     3.1
    PCE................................     1.5     1.8     2.3     1.8     1.9     1.9     2.0     2.8     2.7     3.0     2.7     2.6     3.1     3.1     3.0     3.3
    PCE excluding food and energy......     1.9     1.6     1.5     1.4     1.3     1.4     1.8     2.1     2.1     2.2     2.2     2.0     2.0     2.1     2.0     2.2
    Market-based PCE\1\................     1.1     1.7     2.3     1.7     1.8     1.6     1.7     2.4     2.3     2.7     2.5     2.4     3.1     3.0     2.9     3.2
    Market-based PCE excluding food
     and energy\1\.....................     1.5     1.4     1.3     1.2     1.1     1.0     1.3     1.5     1.4     1.7     1.8     1.7     1.7     1.8     1.6     1.9
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2003       2004       2005      II 05     III 05      IV 05       I 06      II 06r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   10,960.8   11,712.5   12,455.8   12,346.1   12,573.5   12,730.5   13,008.4   13,197.3

Plus: Income receipts from the rest of the
 world.....................................      336.8      410.2      513.3      489.0      527.2      564.9      603.3      661.4
Less: Income payments to the rest of the
 world.....................................      280.0      363.9      481.5      460.6      475.0      552.4      574.3      638.6

Equals: Gross national product.............   11,017.6   11,758.7   12,487.7   12,374.6   12,625.7   12,743.0   13,037.4   13,220.1

Less: Consumption of fixed capital.........    1,336.5    1,436.2    1,604.8    1,491.1    1,898.0    1,562.5    1,548.0    1,572.8
Less: Statistical discrepancy..............       48.8       66.7       71.0       88.1       84.5       74.3      -61.9      -72.0

Equals: National income....................    9,632.3   10,255.9   10,811.8   10,795.4   10,643.2   11,106.2   11,551.3   11,719.3
  Compensation of employees................    6,325.4    6,650.3    7,030.3    6,953.7    7,093.6    7,184.4    7,400.3    7,533.2
    Wage and salary accruals...............    5,127.7    5,377.1    5,664.8    5,601.3    5,715.2    5,787.0    5,970.1    6,081.2
    Supplements to wages and salaries......    1,197.7    1,273.2    1,365.5    1,352.4    1,378.4    1,397.4    1,430.3    1,452.0
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      811.3      911.1      970.7      965.8      967.3      996.8    1,008.3    1,011.9
  Rental income of persons with capital
   consumption adjustment..................      133.0      127.0       72.8      102.8      -11.5       81.5       76.8       71.4
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................      993.1    1,182.6    1,330.7    1,342.9    1,266.3    1,393.5    1,569.1    1,591.8
  Net interest and miscellaneous payments..      524.7      485.1      483.4      477.1      482.9      490.0      514.8      513.2
  Taxes on production and imports less
   subsidies...............................      759.3      819.4      865.1      864.7      872.1      874.2      897.4      914.0
  Business current transfer payments.......       83.8       85.5       74.2       99.9         .2       99.1       93.8       93.1
  Current surplus of government
   enterprises.............................        1.7       -5.0      -15.4      -11.3      -27.7      -13.3       -9.2       -9.4

Addendum:
  Gross domestic income....................   10,912.0   11,645.8   12,384.8   12,258.1   12,489.0   12,656.2   13,070.3   13,269.3
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2003       2004       2005      II 05     III 05      IV 05       I 06      II 06r
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    9,163.6    9,731.4   10,239.2   10,161.5   10,262.7   10,483.7   10,721.4   10,901.0

  Compensation of employees, received......    6,310.4    6,665.3    7,030.3    6,953.7    7,093.6    7,184.4    7,400.3    7,533.2
    Wage and salary disbursements..........    5,112.7    5,392.1    5,664.8    5,601.3    5,715.2    5,787.0    5,970.1    6,081.2
    Supplements to wages and salaries......    1,197.7    1,273.2    1,365.5    1,352.4    1,378.4    1,397.4    1,430.3    1,452.0
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      811.3      911.1      970.7      965.8      967.3      996.8    1,008.3    1,011.9
    Farm...................................       29.2       36.2       30.2       28.7       29.7       28.7       23.9       17.5
    Nonfarm................................      782.1      874.9      940.4      937.1      937.7      968.1      984.4      994.3
  Rental income of persons with capital
   consumption adjustment..................      133.0      127.0       72.8      102.8      -11.5       81.5       76.8       71.4
  Personal income receipts on assets.......    1,336.6    1,427.9    1,519.4    1,500.5    1,532.7    1,580.2    1,602.3    1,647.7
    Personal interest income...............      914.1      890.8      945.0      934.8      951.2      981.7      989.1    1,019.2
    Personal dividend income...............      422.6      537.1      574.4      565.7      581.5      598.5      613.2      628.5
  Personal current transfer receipts.......    1,351.0    1,426.5    1,526.6    1,510.1    1,569.0    1,539.8    1,570.4    1,589.7

  Less: Contributions for government
   social insurance........................      778.6      826.4      880.6      871.5      888.5      898.9      936.7      952.9

Less: Personal current taxes...............    1,001.1    1,049.8    1,203.1    1,191.8    1,215.0    1,247.6    1,332.6    1,378.6

Equals: Disposable personal income.........    8,162.5    8,681.6    9,036.1    8,969.7    9,047.7    9,236.1    9,388.8    9,522.4

Less: Personal outlays.....................    7,987.7    8,507.2    9,070.9    9,000.4    9,180.3    9,264.5    9,418.5    9,577.0

Equals: Personal saving....................      174.9      174.3      -34.8      -30.8     -132.6      -28.5      -29.7      -54.6

  Personal saving as a percentage of
   disposable personal income..............        2.1        2.0        -.4        -.3       -1.5        -.3        -.3        -.6

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    7,729.9    8,010.8    8,104.6    8,085.8    8,074.1    8,183.3    8,276.8    8,311.9
-----------------------------------------------------------------------------------------------------------------------------------
  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                                       Quarterly        Quarter one
                                                                         at annual rates                                           rates             year ago
                                                              ---------------------------------------                 ------------------------------- -------
                                         2003    2004    2005   II 05  III 05   IV 05    I 06   II 06r   2004    2005  III 05   IV 05    I 06   II 06r  II 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
 valuation and capital consumption
 adjustments.........................   993.1 1,182.6 1,330.7 1,342.9 1,266.3 1,393.5 1,569.1 1,591.8    19.1    12.5    -5.7    10.0    12.6     1.4    18.5

Less: Taxes on corporate income......   243.3   300.1   399.3   392.8   378.9   424.6   456.9   476.1    23.3    33.1    -3.5    12.1     7.6     4.2    21.2

Equals: Profits after tax with
 inventory valuation and capital
 consumption adjustments.............   749.9   882.5   931.4   950.1   887.5   968.9 1,112.1 1,115.7    17.7     5.5    -6.6     9.2    14.8      .3    17.4
  Net dividends......................   424.7   539.5   576.9   568.2   584.0   601.0   615.7   631.1    27.0     6.9     2.8     2.9     2.5     2.5    11.1
  Undistributed profits with
   inventory valuation and capital
   consumption adjustments...........   325.1   343.0   354.5   381.9   303.5   367.9   496.4   484.6     5.5     3.4   -20.5    21.2    34.9    -2.4    26.9

Cash flow:
  Net cash flow with inventory
   valuation and capital consumption
   adjustments....................... 1,084.9 1,139.2 1,211.3 1,209.8 1,230.7 1,223.9 1,349.2 1,350.3     5.0     6.3     1.7     -.5    10.2      .1    11.6
    Undistributed profits with
     inventory valuation and capital
     consumption adjustments.........   325.1   343.0   354.5   381.9   303.5   367.9   496.4   484.6     5.5     3.4   -20.5    21.2    34.9    -2.4    26.9
    Consumption of fixed capital.....   759.8   796.2   856.8   827.9   927.2   856.0   852.8   865.6     4.8     7.6    12.0    -7.7     -.4     1.5     4.6

  Less: Inventory valuation
   adjustment........................   -13.6   -39.8   -32.6   -21.0   -30.9   -39.2   -22.9   -58.9   .....   .....   .....   .....   .....   .....   .....

  Equals: Net cash flow.............. 1,098.5 1,178.9 1,243.9 1,230.8 1,261.5 1,263.2 1,372.1 1,409.2     7.3     5.5     2.5      .1     8.6     2.7    14.5

Addenda:
  Profits before tax (without
   inventory valuation and capital
   consumption adjustments)..........   908.1 1,144.3 1,518.7 1,508.3 1,475.8 1,598.3 1,740.6 1,811.5    26.0    32.7    -2.2     8.3     8.9     4.1    20.1
  Profits after tax (without
   inventory valuation and capital
   consumption adjustments)..........   664.8   844.2 1,119.4 1,115.5 1,096.9 1,173.7 1,283.7 1,335.4    27.0    32.6    -1.7     7.0     9.4     4.0    19.7
  Inventory valuation adjustment.....   -13.6   -39.8   -32.6   -21.0   -30.9   -39.2   -22.9   -58.9   .....   .....   .....   .....   .....   .....   .....
  Capital consumption adjustment.....    98.7    78.1  -155.5  -144.5  -178.6  -165.6  -148.6  -160.8   .....   .....   .....   .....   .....   .....   .....
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                      ---------------------------------------  ----------------------------------------------
                                                 2003    2004    2005   II 05  III 05   IV 05    I 06   II 06r   2004    2005  III 05   IV 05    I 06   II 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------
    Corporate profits with inventory
     valuation and capital consumption
     adjustments.............................   993.1 1,182.6 1,330.7 1,342.9 1,266.3 1,393.5 1,569.1 1,591.8   189.5   148.1   -76.6   127.2   175.6    22.7

Domestic industries..........................   827.7 1,006.3 1,133.7 1,157.7 1,042.9 1,197.2 1,343.0 1,351.9   178.6   127.4  -114.8   154.3   145.8     8.9
  Financial..................................   335.6   353.7   369.4   373.3   296.1   390.8   442.2   483.9    18.1    15.7   -77.2    94.7    51.4    41.7
  Nonfinancial...............................   492.1   652.6   764.2   784.3   746.8   806.4   900.9   868.1   160.5   111.6   -37.5    59.6    94.5   -32.8

Rest of the world............................   165.5   176.3   197.0   185.2   223.4   196.3   226.1   239.9    10.8    20.7    38.2   -27.1    29.8    13.8
  Receipts from the rest of the world........   249.1   302.0   338.0   327.4   344.0   360.6   376.3   402.0    52.9    36.0    16.6    16.6    15.7    25.7
  Less: Payments to the rest of the world....    83.6   125.8   141.0   142.2   120.5   164.2   150.2   162.1    42.2    15.2   -21.7    43.7   -14.0    11.9

    Corporate profits with inventory
     valuation adjustment....................   894.5 1,104.5 1,486.1 1,487.4 1,444.9 1,559.1 1,717.7 1,752.6   210.0   381.6   -42.5   114.2   158.6    34.9

Domestic industries..........................   729.0   928.2 1,289.1 1,302.2 1,221.5 1,362.8 1,491.6 1,512.7   199.2   360.9   -80.7   141.3   128.8    21.1
  Financial..................................   317.3   344.2   389.0   391.7   317.4   413.3   463.9   508.2    26.9    44.8   -74.3    95.9    50.6    44.3
    Federal Reserve banks....................    20.1    20.0    26.6    25.9    26.9    30.4    30.9    33.7     -.1     6.6     1.0     3.5      .5     2.8
    Other financial..........................   297.2   324.1   362.5   365.7   290.6   382.9   433.0   474.4    26.9    38.4   -75.1    92.3    50.1    41.4

  Nonfinancial...............................   411.8   584.0   900.1   910.5   904.1   949.4 1,027.7 1,004.5   172.2   316.1    -6.4    45.3    78.3   -23.2
    Utilities................................    11.6    16.2    30.3    30.9    22.4    38.3    39.7    46.8     4.6    14.1    -8.5    15.9     1.4     7.1
    Manufacturing............................    76.0   150.2   254.8   264.0   260.7   258.9   300.7   289.9    74.2   104.6    -3.3    -1.8    41.8   -10.8
      Durable goods..........................    -5.9    31.3    73.8    86.2    75.4    72.9   102.2    78.7    37.2    42.5   -10.8    -2.5    29.3   -23.5
        Fabricated metal products............     7.9    12.3    20.6    21.2    22.8    21.2    25.7    24.1     4.4     8.3     1.6    -1.6     4.5    -1.6
        Machinery............................     1.5     7.0    13.8    13.7    14.5    15.0    19.1    18.3     5.5     6.8      .8      .5     4.1     -.8
        Computer and electronic products.....   -15.6    -6.7     3.9     2.8     6.7     8.0    12.3    13.1     8.9    10.6     3.9     1.3     4.3      .8
        Electrical equipment, appliances,
         and components......................     2.1      .2     5.7     7.2     6.7     5.6     8.4     6.8    -1.9     5.5     -.5    -1.1     2.8    -1.6
        Motor vehicles, bodies and trailers,
         and parts...........................   -12.3   -11.2   -17.9   -10.8   -19.8   -25.3   -18.2   -25.4     1.1    -6.7    -9.0    -5.5     7.1    -7.2
        Other durable goods..................    10.5    29.7    47.7    52.2    44.5    48.5    54.9    41.9    19.2    18.0    -7.7     4.0     6.4   -13.0

      Nondurable goods.......................    81.9   118.9   181.0   177.8   185.2   186.0   198.5   211.2    37.0    62.1     7.4      .8    12.5    12.7
        Food and beverage and tobacco
         products............................    23.6    22.4    28.5    26.7    29.3    28.6    29.6    29.5    -1.2     6.1     2.6     -.7     1.0     -.1
        Petroleum and coal products..........    23.3    49.3    70.4    66.4    74.2    76.0    74.5    92.4    26.0    21.1     7.8     1.8    -1.5    17.9
        Chemical products....................    19.5    23.8    45.3    46.4    43.3    44.4    54.1    53.6     4.3    21.5    -3.1     1.1     9.7     -.5
        Other nondurable goods...............    15.5    23.4    36.8    38.3    38.4    37.0    40.1    35.7     7.9    13.4      .1    -1.4     3.1    -4.4

    Wholesale trade..........................    55.2    69.9    97.6   102.1    94.1   105.9   107.2    98.3    14.7    27.7    -8.0    11.8     1.3    -8.9
    Retail trade.............................    86.8    89.3   113.7   107.3   115.9   129.1   123.0   121.2     2.5    24.4     8.6    13.2    -6.1    -1.8
    Transportation and warehousing...........     7.3    11.8    21.0    22.0    23.1    19.0    27.3    38.6     4.5     9.2     1.1    -4.1     8.3    11.3
    Information..............................     3.2    37.7    77.5    79.9    77.8    83.6    89.8    85.9    34.5    39.8    -2.1     5.8     6.2    -3.9
    Other nonfinancial.......................   171.7   208.8   305.2   304.3   310.1   314.6   340.1   323.9    37.1    96.4     5.8     4.5    25.5   -16.2

Rest of the world............................   165.5   176.3   197.0   185.2   223.4   196.3   226.1   239.9    10.8    20.7    38.2   -27.1    29.8    13.8
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised
  Note.--Estimates in this table are based on the 1997 North
American Industry Classification System (NAICS).

                             Table 13.--Gross Value Added of Nonfinancial Domestic Corporate Business
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2003       2004       2005      II 05     III 05      IV 05       I 06      II 06r
-----------------------------------------------------------------------------------------------------------------------------------
                                                                             Billions of dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business....................    5,558.4    5,932.9    6,369.7    6,324.4    6,425.7    6,534.8    6,788.2    6,867.0

Consumption of fixed capital...............      657.5      686.2      739.7      713.2      804.9      737.2      733.7      744.4

Net value added............................    4,900.9    5,246.7    5,630.1    5,611.3    5,620.8    5,797.6    6,054.5    6,122.6

  Compensation of employees................    3,703.2    3,873.4    4,099.7    4,049.9    4,140.7    4,198.0    4,341.0    4,427.6
    Wage and salary accruals...............    3,019.4    3,158.4    3,335.1    3,292.7    3,369.0    3,414.5    3,537.5    3,610.9
    Supplements to wages and salaries......      683.8      714.9      764.6      757.1      771.7      783.5      803.5      816.6
  Taxes on production and imports less
   subsidies...............................      488.5      522.9      558.1      556.8      562.9      567.2      576.7      585.3
  Net operating surplus....................      709.2      850.4      972.2    1,004.6      917.3    1,032.4    1,136.8    1,109.7
    Net interest and miscellaneous
     payments..............................      152.6      137.8      156.6      152.9      159.3      165.1      175.1      180.0
    Business current transfer payments.....       64.4       60.0       51.4       67.3       11.1       60.9       60.9       61.7
    Corporate profits with inventory
     valuation and capital consumption
     adjustments...........................      492.1      652.6      764.2      784.3      746.8      806.4      900.9      868.1
      Taxes on corporate income............      135.7      185.3      251.4      244.9      255.8      266.4      280.9      283.3
      Profits after tax with inventory
       valuation and capital consumption
       adjustments.........................      356.4      467.4      512.9      539.4      491.0      540.0      620.0      584.8
        Net dividends......................      292.7      366.9      228.5      303.0      126.3      120.1      377.7      392.8
        Undistributed profits with
         inventory valuation and capital
         consumption adjustments...........       63.8      100.5      284.4      236.5      364.7      419.9      242.3      192.0

Addenda:
  Profits before tax (without inventory
   valuation and capital consumption
   adjustments)............................      425.4      623.8      932.6      931.4      935.0      988.7    1,050.6    1,063.5
  Profits after tax (without inventory
   valuation and capital consumption
   adjustments)............................      289.7      438.6      681.3      686.5      679.2      722.3      769.7      780.2
  Inventory valuation adjustment...........      -13.6      -39.8      -32.6      -21.0      -30.9      -39.2      -22.9      -58.9
  Capital consumption adjustment...........       80.3       68.6     -135.8     -126.2     -157.3     -143.0     -126.8     -136.5
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business\1\.................    5,382.1    5,654.5    5,959.9    5,935.2    5,994.7    6,079.8    6,268.0    6,295.2

Consumption of fixed capital\2\............      630.5      650.9      681.6      660.5      738.9      670.5      666.1      669.2
Net value added\3\.........................    4,751.6    5,003.6    5,278.3    5,274.7    5,255.8    5,409.3    5,601.8    5,626.1
                                           ----------------------------------------------------------------------------------------
                                                                    Dollars; quarters seasonally adjusted
                                           ----------------------------------------------------------------------------------------
Price, costs, and profits per unit of real
 gross value added of nonfinancial
 corporate business:

  Price per unit of real gross value added
   of nonfinancial corporate business\4\...      1.033      1.049      1.069      1.066      1.072      1.075      1.083      1.091

  Compensation of employees (unit labor
   cost)...................................       .688       .685       .688       .682       .691       .690       .693       .703

  Unit nonlabor cost.......................       .253       .248       .252       .251       .257       .251       .247       .250
    Consumption of fixed capital...........       .122       .121       .124       .120       .134       .121       .117       .118
    Taxes on production and imports less
     subsidies plus business current
     transfer payments.....................       .103       .103       .102       .105       .096       .103       .102       .103
    Net interest and miscellaneous payments       .028       .024       .026       .026       .027       .027       .028       .029

  Corporate profits with inventory valuation
   and capital consumption adjustments (unit
   profits from current production)........       .091       .115       .128       .132       .125       .133       .144       .138
    Taxes on corporate income..............       .025       .033       .042       .041       .043       .044       .045       .045
    Profits after tax with inventory
     valuation and capital consumption
     adjustments...........................       .066       .083       .086       .091       .082       .089       .099       .093
-----------------------------------------------------------------------------------------------------------------------------------
  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
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2003   2004   2005 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06  II 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................    2.5    3.9    3.2    2.4     .2    1.2    3.5    7.5    2.7    3.9    4.0    3.1    2.6    3.4    3.3    4.2    1.8    5.6    2.6

  Goods.............................    3.1    4.9    4.6    5.2   -5.2    3.9    1.6   16.2    2.5    3.7    3.0    5.0    4.6    4.9    3.5    6.7    3.1   12.8    3.6
  Services..........................    2.1    3.2    2.3    1.7    2.9     .1    3.6    1.9    2.8    4.5    3.0    2.5    2.5    1.8    1.8    3.5     .8    2.4    2.4
  Structures........................    3.3    5.2    4.6   -3.0    3.1   -1.0    9.2   14.1    2.2     .5   13.6     .6   -2.7    8.0   11.1     .7    3.1    2.9     .3

  Motor vehicle output..............    1.3    3.5    5.9   11.6     .5  -11.8   10.9    8.9   -6.5    9.9   -7.1   16.6    1.9   12.0    -.7   22.6  -19.1    3.8   -9.4
  GDP excuding motor vehicle
   output...........................    2.6    3.9    3.1    2.0     .2    1.7    3.2    7.4    3.0    3.6    4.5    2.7    2.6    3.1    3.4    3.6    2.6    5.6    3.0

  Final sales of computers\1\.......   20.8    8.2   24.5   29.3   15.3   16.9   -2.5   90.4   20.0  -16.0  -17.4   23.0   42.8   24.3   31.5   11.6   33.8    9.5    6.7
  GDP excluding final sales of
   computers........................    2.4    3.9    3.1    2.2     .1    1.1    3.5    7.0    2.5    4.0    4.2    3.0    2.4    3.3    3.1    4.1    1.6    5.6    2.5

  Farm gross value added\2\.........    8.4    7.4    1.0   63.9   34.2  -16.1   26.6  -34.7  -36.1  120.0  -17.4   19.4   23.7   -2.0  -24.6   11.3    8.1   14.1    3.9

  Nonfarm business gross value
   added\3\.........................    3.1    4.3    3.8    3.1     .1    1.2    4.3   11.0    1.6    3.6    5.2    3.2    2.4    4.2    4.4    4.9    1.8    6.7    2.7

Price indexes:
  GDP...............................    2.1    2.8    3.0    1.6    2.2    3.1    1.3    2.1    2.2    3.7    3.7    2.1    3.2    3.5    2.4    3.3    3.3    3.3    3.3
  GDP excluding food and energy.....    1.9    2.7    3.0    1.6    2.0    2.7    1.1    1.7    2.1    3.4    3.4    2.6    3.1    3.4    2.4    2.8    3.3    3.1    3.0
  GDP excluding final sales of
   computers........................    2.3    2.9    3.2    1.7    2.4    3.3    1.4    2.2    2.3    3.8    3.7    2.2    3.4    3.7    2.6    3.4    3.4    3.4    3.5

  Gross domestic purchases..........    2.3    3.1    3.5    1.7    2.2    4.1     .6    2.2    1.9    4.3    4.1    2.6    3.6    3.2    3.3    4.4    3.5    2.7    4.0
  Gross domestic purchases excluding
   food and energy..................    1.9    2.7    2.8    1.6    1.8    2.6    1.3    1.8    2.0    3.5    3.3    2.5    2.9    3.4    2.3    2.5    3.0    3.0    2.9
  Gross domestic purchases excluding
   final sales of computers to
   domestic purchasers..............    2.5    3.2    3.7    1.9    2.4    4.4     .7    2.4    2.0    4.4    4.2    2.8    3.8    3.4    3.5    4.6    3.7    2.9    4.2

  Personal consumption expenditures
   (PCE)............................    2.0    2.6    2.9    1.8    1.7    3.1     .7    2.4    1.5    3.7    3.6    1.9    3.0    2.3    3.1    4.1    2.9    2.0    4.0
  Personal consumption expenditures
   excluding food and energy........    1.4    2.0    2.1    1.9    1.2    1.1    1.3    1.8    1.6    2.5    2.5    1.7    2.3    2.4    1.9    1.6    2.5    2.1    2.7
  Market-based PCE\4\...............    1.9    2.3    2.7    1.7    1.7    3.1     .3    2.2     .9    3.3    3.4    1.5    2.9    2.1    3.1    4.3    2.5    1.7    4.2
  Market-based PCE excluding food
   and energy\4\....................    1.1    1.5    1.7    1.7    1.2     .7    1.0    1.4     .9    1.7    1.9    1.2    1.8    2.2    1.7    1.2    1.9    1.6    2.7
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised
  1. Some components of final sales of computers include
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 2004-05
annual percent change in real GDP uses prices for 2004 and 2005 as weights, and the 2004-05 annual
percent change in GDP prices uses quantities for 2004 and 2005 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, and 8.
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.