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News Release: Gross Domestic Product and Corporate Profits

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EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, THURSDAY, MARCH 30, 2006

Virginia H. Mannering:  (202)   606-5304   (GDP)                                       BEA 06-11
Greg Key:               (202)   606-9727   (Profits)
Recorded message:       (202)   606-5306


                               GROSS DOMESTIC PRODUCT:  FOURTH QUARTER 2005 (FINAL)
                                     CORPORATE PROFITS:  FOURTH QUARTER 2005    

	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 1.7 percent in the fourth quarter of 2005, 
according to final estimates released by the Bureau of Economic Analysis.  In the third quarter, real 
GDP increased 4.1 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      
1.6 percent (see "Revisions" on page 3).

	The increase in real GDP in the fourth quarter primarily reflected positive contributions from 
private inventory investment, personal consumption expenditures (PCE), exports, equipment and 
software, and residential fixed investment that were partly offset by a negative contribution from federal  
government spending.  Imports, which are a subtraction in the calculation of GDP, increased.

	The deceleration in real GDP growth in the fourth quarter primarily reflected a deceleration in 
PCE, an acceleration in imports, a downturn in federal government spending, and decelerations in 
equipment and software and in residential fixed investment that were partly offset by an upturn in 
inventory investment and an acceleration in exports.

	Final sales of computers contributed 0.33 percentage point to the fourth-quarter growth in real 
GDP after contributing 0.16 percentage point to the third-quarter growth.  Motor vehicle output 
subtracted 0.64 percentage point from the fourth-quarter growth in real GDP after contributing 0.56 
percentage point to the third-quarter growth.  


FOOTNOTE.--Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise
specified.  Quarter-to-quarter dollar changes are differences between these published estimates.  Percent 
changes are calculated from unrounded data and annualized.  ?Real? estimates are in chained (2000) 
dollars.  Prices indexes are chain-type measures.

                     This new release is available on BEA?s Web site at www.bea.gov/bea/rels.htm.



	The price index for gross domestic purchases, which measures prices paid by U.S. residents, 
increased 3.7 percent in the fourth quarter, 0.1 percentage point more than the preliminary estimate; this 
index increased 4.2 percent in the third quarter.  Excluding food and energy prices, the price index for 
gross domestic purchases increased 3.2 percent in the fourth quarter, compared with an increase of 2.5 
percent in the third.

	Real personal consumption expenditures increased 0.9 percent in the fourth quarter, compared 
with an increase of 4.1 percent in the third.  Real nonresidential fixed investment increased 4.5 percent, 
compared with an increase of 8.5 percent.  Nonresidential structures increased 3.1 percent, compared 
with an increase of 2.2 percent.  Equipment and software increased 5.0 percent, compared with an 
increase of 10.6 percent.  Real residential fixed investment increased 2.8 percent, compared with an 
increase of 7.3 percent.

	Real exports of goods and services increased 5.1 percent in the fourth quarter, compared with an 
increase of 2.5 percent in the third.  Real imports of goods and services increased 12.1 percent, 
compared with an increase of 2.4 percent.

	Real federal government consumption expenditures and gross investment decreased 2.6 percent in 
the fourth quarter, in contrast to an increase of 7.4 percent in the third.  National defense decreased 8.9 
percent, in contrast to an increase of 10.0 percent.  Nondefense increased 11.7 percent, compared with 
an increase of 2.4 percent.  Real state and local government consumption expenditures and gross 
investment increased 0.2 percent, the same as in the third quarter.

	The real change in private inventories added 1.89 percentage points to the fourth-quarter change in 
real GDP, after subtracting 0.43 percentage point from the third-quarter change.  Private businesses 
increased inventories $37.9 billion in the fourth quarter, following decreases of $13.3 billion in the third 
quarter and $1.7 billion in the second.

	Real final sales of domestic product -- GDP less change in private inventories -- decreased 0.2 
percent in the fourth quarter, in contrast to an increase of 4.6 percent in the third.


Gross domestic purchases

	Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever 
produced -- increased 2.9 percent in the fourth quarter, compared with an increase of 4.0 percent in the 
third. 


Gross national product

	Real gross national product -- the goods and services produced by the labor and property supplied 
by U.S. residents -- increased 0.7 percent in the fourth quarter, compared with an increase of 4.4 percent 
in the third.  GNP includes, and GDP excludes, net receipts of income from the rest of the world, which 
decreased $25.6 billion in the fourth quarter after increasing $7.6 billion in the third; in the fourth 
quarter, receipts increased $28.9 billion, and payments increased $54.5 billion.


Current-dollar GDP

	Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 
5.2 percent, or $160.4 billion, in the fourth quarter to a level of $12,766.1 billion.  In the third quarter, 
current-dollar GDP increased 7.6 percent, or $227.7 billion.


Revisions

	The final estimate of the fourth-quarter increase in real GDP is 0.1 percentage point, or $0.7 
billion, higher than the preliminary estimate issued last month.  The upward revision to the percentage 
change in real GDP primarily reflected an upward revision to inventory investment that was partly offset 
by a downward revision to personal consumption expenditures for services.


                                          Advance    Preliminary        Final
                                        (Percent change from preceding quarter)

Real GDP...............................     1.1          1.6             1.7
Current-dollar GDP.....................     4.2          5.0             5.2
Gross domestic purchases price index...     3.3          3.6             3.7


Corporate Profits

	Profits from current production (corporate profits with inventory valuation and capital 
consumption adjustments) increased $185.8 billion in the fourth quarter, in contrast to a decrease of 
$54.4 billion in the third.  Current-production cash flow (net cash flow with inventory valuation and 
capital consumption adjustments) -- the internal funds available to corporations for investment -- 
increased $43.1 billion in the fourth quarter, compared with an increase of $44.0 billion in the third.

            Fourth-quarter profits from current production were reduced by $22.9 billion because of 
Hurricane Wilma; third-quarter profits had been reduced by $165.3 billion because of Hurricanes 
Katrina and Rita.  These reductions reflected the net benefits paid by domestic insurance companies and 
the uninsured losses of corporate property.

	 Taxes on corporate income increased $56.8 billion in the fourth quarter, in contrast to a decrease 
of $12.2 billion in the third.  Profits after tax with inventory valuation and capital consumption 
adjustments increased $129.0 billion in the fourth quarter, in contrast to a decrease of $42.2 billion in the 
third.  Dividends increased $15.3 billion, compared with an increase of $13.8 billion; current-production 
undistributed profits increased $113.8 billion, in contrast to a decrease of $56.1 billion.

	Domestic profits of financial corporations increased $104.9 billion in the fourth quarter, in 
contrast to a decrease of $71.9 billion in the third.  Domestic profits of nonfinancial corporations 
increased $95.5 billion in the fourth quarter, in contrast to a decrease of $8.5 billion in the third.  In the 
fourth quarter, real gross corporate product increased, and profits per unit of real product increased.  The 
increase in unit profits reflected an increase in unit prices and decreases in both the unit labor and 
nonlabor costs incurred by corporations.

	The rest-of-the-world component of profits decreased $14.5 billion in the fourth quarter, in 
contrast to an increase of $25.9 billion in the third.  This measure is calculated as (1) receipts by U.S. 
residents of earnings from their foreign affiliates plus dividends received by U.S. residents from 
unaffiliated foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign 
parents plus dividends paid by U.S. corporations to unaffiliated foreign residents.  The fourth-quarter 
decrease was accounted for by a smaller 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 and nonfinancial corporations increased.  The increase in financial 
corporations partly reflected a rebound from the third-quarter impacts of Hurricanes Katrina and Rita.  
The increase in nonfinancial corporations reflected increases in all major categories (except 
transportation and warehousing), led by utilities and by manufacturing.  Within manufacturing, 
petroleum accounted for about half the increase.   

	Profits before tax increased $177.5 billion in the fourth quarter, in contrast to a decrease of $19.6 
billion in the third.  The before-tax measure of profits does not reflect, as does profits from current 
production, the capital consumption and inventory valuation adjustments.  These adjustments convert 
depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to 
the current-cost measures used in the national income and product accounts.  The capital consumption 
adjustment increased $21.4 billion in the fourth quarter (from -$72.1 billion to -$50.7 billion), in 
contrast to a decrease of $26.3 billion in the third.  The inventory valuation adjustment decreased $12.9 
billion (from -$27.5 billion to -$40.4 billion), compared with a decrease of $8.6 billion. 


Corporate profits in 2005

	Profits from current production increased 16.4 percent in 2005, compared with an increase of 
12.6 percent in 2004.  Domestic profits increased 17.4 percent, compared with an increase of 14.1 
percent.  The rest-of-the-world component of profits increased 11.2 percent, compared with an increase 
of 5.1 percent.

	Taxes on corporate income increased 39.5 percent in 2005, compared with an increase of 16.8 
percent in 2004.  Profits after tax with inventory valuation and capital consumption adjustments 
increased 9.4 percent, compared with an increase of 11.3 percent.  Dividends increased 4.3 percent, 
compared with an increase of 16.5 percent; current-production undistributed profits increased 15.7 
percent, compared with an increase of 5.5 percent.

	Profits before tax increased 35.8 percent in 2005, compared with an increase of 13.0 percent in 
2004.  In 2005, the difference between the increase in profits from current production and the increase in 
profits before tax was mainly due to the effects of the Job Creation and Worker Assistance Act of 2002 
and the Jobs and Growth Tax Relief Reconciliation Act of 2003, which allowed accelerated depreciation 
and raised before-tax profits.  Profits from current production was not affected by the Acts, because this 
measure does not depend on the depreciation-accounting practices used for federal income tax purposes.




     BEA's national, international, regional, and industry estimates; the Survey of Current Business; and 
BEA news releases are available without charge on BEA's Web site at www.bea.gov.  By visiting the 
site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.

	Summary BEA estimates are available on recorded messages at the time of public release at the 
following telephone numbers:

			(202)	606-5306     Gross domestic product
			(202)	606-5303     Personal income and outlays


                                     *          *          *


                    Next release -- April 28, 2006, at 8:30 A.M. EDT for:
                    Gross Domestic Product:   First 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   2005r  I 02  II 02 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 05r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.7    4.2    3.5    2.7    2.2    2.4     .2    1.7    3.7    7.2    3.6    4.3    3.5    4.0    3.3    3.8    3.3    4.1    1.7

Personal consumption expenditures...    2.9    3.9    3.5    1.4    2.4    2.3    1.4    2.5    3.6    5.8    3.1    4.7    1.9    4.4    4.3    3.5    3.4    4.1     .9
  Durable goods.....................    6.6    6.0    4.5   -4.2    3.6   11.5   -5.2    3.6   15.1   19.8    -.3    4.4     .4   10.8    5.5    2.6    7.9    9.3  -16.6
  Nondurable goods..................    3.2    4.7    4.4    3.3    1.3     .3    3.6    3.2    1.9    8.3    3.1    6.6    2.6    3.9    5.5    5.3    3.6    3.5    5.0
  Services..........................    2.0    3.0    2.9    1.8    2.6    1.3    1.8    1.9    2.3    2.0    3.8    3.8    1.8    3.4    3.6    2.8    2.3    3.3    2.6

Gross private domestic investment...    3.9   11.9    6.1   13.6    1.9    5.8   -1.0    -.4    2.7   17.5   12.0   10.1   20.9    4.6    6.8    8.6   -3.7    5.3   16.1
  Fixed investment..................    3.6    9.7    8.1   -6.3   -1.4    -.7   -1.4     .8    8.8   14.8    6.9    6.9   15.1    8.4    7.2    7.0    9.5    8.0    3.9
    Nonresidential..................    1.3    9.4    8.6  -12.8   -6.1   -2.0   -5.0   -1.1    8.4   11.2    4.4    7.9   13.5   11.8   10.4    5.7    8.8    8.5    4.5
      Structures....................   -4.2    2.2    2.0  -19.0  -19.0  -15.5   -5.3   -8.4   13.3    -.1    1.3   -3.5    8.8    1.4    4.7   -2.0    2.7    2.2    3.1
      Equipment and software........    3.2   11.9   10.9  -10.4    -.9    3.3   -4.9    1.6    6.7   15.4    5.5   12.0   15.2   15.5   12.4    8.3   10.9   10.6    5.0
    Residential.....................    8.4   10.3    7.1   10.4    9.5    2.0    6.4    4.7    9.6   21.9   11.5    5.2   17.8    2.6    1.6    9.5   10.8    7.3    2.8
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    1.8    8.4    6.9    5.2   10.6    2.9   -3.1   -2.9   -2.1   11.5   19.1    5.0    6.9    5.5    7.1    7.5   10.7    2.5    5.1
    Goods...........................    1.8    8.9    7.3   -1.6   14.2    2.2   -9.1    1.5     .0    9.1   17.2    7.5    7.9    8.2    3.7    5.3   16.0    3.2    8.0
    Services........................    1.7    7.4    6.0   22.9    2.7    4.6   11.7  -11.9   -6.6   17.2   23.7    -.4    4.8    -.6   15.5   12.5    -.4    1.0   -1.4
  Imports...........................    4.6   10.7    6.3   11.7   12.5    5.7    9.0   -2.5    3.3    4.1   16.5   12.0   14.5    4.7   11.3    7.4    -.3    2.4   12.1
    Goods...........................    4.9   11.0    6.9    9.2   16.0    6.5    8.1   -2.6    6.3     .9   17.7   12.4   14.7    4.7   13.0    8.2   -1.1    3.5   13.5
    Services........................    3.0    9.6    3.6   24.7   -3.0    1.7   14.0   -2.2  -10.2   21.4   10.7   10.0   13.7    4.6    3.1    3.7    4.4   -3.2    4.8

Government consumption expenditures
 and gross investment...............    2.8    2.2    1.8    4.3    4.8    2.3    4.8    -.3    7.2     .5     .5    3.3    2.3    1.8     .9    1.9    2.5    2.9    -.8
  Federal...........................    6.9    5.2    2.3    5.9   12.5    3.0   10.2     .3   22.1   -2.0    3.1   10.7    3.2    3.6    -.6    2.4    2.4    7.4   -2.6
    National defense................    8.8    7.0    2.6    3.7   11.5    4.1   14.8   -3.6   37.4   -6.5    7.9   13.8     .8    9.0   -3.3    3.0    3.7   10.0   -8.9
    Nondefense......................    3.4    1.8    1.8   10.2   14.1    1.2    2.1    8.0   -2.4    7.2   -5.8    4.9    8.1   -6.4    5.2    1.1    -.2    2.4   11.7
  State and local...................     .6     .4    1.5    3.5    1.0    1.9    2.0    -.6    -.3    2.0    -.9    -.7    1.8     .8    1.8    1.6    2.6     .2     .2

Addenda:
  Final sales of domestic product...    2.7    3.9    3.8    -.2    1.7    1.4     .1    1.9    4.6    6.9    2.8    3.8    2.6    4.6    3.3    3.5    5.6    4.6    -.2
  Gross domestic purchases..........    3.0    4.7    3.6    3.6    2.7    2.8    1.7    1.5    4.2    6.5    3.9    5.2    4.7    3.9    4.1    4.0    2.1    4.0    2.9
  Final sales to domestic
   purchasers.......................    3.0    4.4    3.9     .7    2.2    1.8    1.6    1.7    5.0    6.1    3.2    4.8    3.8    4.5    4.1    3.7    4.2    4.5    1.1
  Gross national product (GNP)......    3.0    4.0    3.3     .8    1.8    2.9    1.0    1.5    4.5    7.2    4.5    3.8    2.2    4.0    2.9    3.9    3.2    4.4     .7
  Disposable personal income........    2.4    3.4    1.4   11.6    1.9   -1.6     .2    2.5    4.5    7.2    1.0    3.6    1.2    2.8    9.1   -3.4     .2   -1.4    6.7

  Current-dollar measures:
    GDP.............................    4.8    7.0    6.4    4.3    3.7    3.9    2.4    4.8    4.8    9.3    5.5    8.1    7.5    5.3    6.1    7.0    6.0    7.6    5.2
    Final sales of domestic product.    4.8    6.6    6.8    1.4    3.2    3.0    2.4    5.1    5.7    8.8    4.8    7.5    6.6    6.1    6.2    6.7    8.3    8.1    3.2
    Gross domestic purchases........    5.3    7.7    6.9    4.9    5.2    4.4    3.9    5.7    4.6    8.6    5.6    9.7    9.0    5.9    7.4    7.0    5.5    8.4    6.7
    Final sales to domestic
     purchasers.....................    5.3    7.4    7.2    2.2    4.8    3.6    3.8    5.9    5.4    8.2    4.9    9.2    8.1    6.6    7.4    6.7    7.6    8.9    4.8
    GNP.............................    5.1    6.8    6.2    2.3    3.3    4.4    3.2    4.6    5.7    9.2    6.4    7.7    6.1    5.4    5.7    7.0    5.9    7.8    4.2
    Disposable personal income......    4.3    6.1    4.3   12.6    4.7     .2    1.9    5.6    5.2    9.4    2.3    7.6    5.1    4.3   12.5   -1.3    3.5    2.3    9.8
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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   2005r  I 02  II 02 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 05r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

    Gross domestic product..........    2.7    4.2    3.5    2.7    2.2    2.4     .2    1.7    3.7    7.2    3.6    4.3    3.5    4.0    3.3    3.8    3.3    4.1    1.7

Percentage points at annual rates:

  Personal consumption expenditures.   2.05   2.71   2.48   1.01   1.64   1.57    .97   1.70   2.55   4.13   2.15   3.27   1.33   3.05   3.01   2.44   2.35   2.85    .62

    Durable goods...................    .57    .51    .37   -.39    .31    .98   -.47    .31   1.23   1.64   -.03    .38    .03    .88    .45    .22    .64    .76  -1.47
      Motor vehicles and parts......    .19    .06   -.03  -1.07    .02    .89   -.75    .22    .53    .77   -.43   -.02   -.19    .44    .11   -.31    .27    .45  -1.92
      Furniture and household
       equipment....................    .26    .34    .28    .50    .23    .06    .21    .03    .48    .63    .30    .31    .24    .34    .21    .32    .17    .37    .33
      Other.........................    .11    .10    .13    .18    .07    .02    .07    .06    .22    .23    .10    .08   -.02    .10    .14    .20    .20   -.06    .12

    Nondurable goods................    .63    .94    .90    .65    .26    .06    .70    .63    .37   1.65    .61   1.31    .53    .78   1.09   1.07    .74    .73   1.02
      Food..........................    .25    .48    .49    .21    .18    .00    .20    .38    .05    .69    .20    .88    .27    .32    .63    .50    .42    .61    .50
      Clothing and shoes............    .14    .17    .17    .23    .04   -.05    .31   -.04    .27    .33    .04    .37   -.09    .17    .25    .15    .20    .08    .27
      Gasoline, fuel oil, and other
       energy goods.................    .01    .03    .04   -.06    .06    .04   -.04   -.01   -.04    .12    .07   -.04    .03    .02    .07    .21   -.11   -.11    .03
      Other.........................    .22    .26    .21    .27   -.01    .07    .23    .29    .09    .51    .31    .11    .33    .28    .14    .20    .23    .15    .21

    Services........................    .85   1.27   1.21    .75   1.07    .54    .74    .76    .94    .84   1.57   1.58    .77   1.39   1.47   1.15    .97   1.36   1.08
      Housing.......................    .07    .30    .24    .06   -.03   -.11   -.07    .08    .13    .24    .31    .39    .27    .29    .29    .23    .22    .20    .16
      Household operation...........    .05    .07    .10    .07    .29   -.11    .19    .01   -.06   -.02    .25    .07   -.07    .04    .34    .07   -.02    .17    .00
        Electricity and gas.........    .02    .03    .06    .11    .25   -.07    .23   -.05   -.13   -.07    .22    .02   -.11   -.05    .37    .02   -.08    .10    .03
        Other household operation...    .03    .05    .04   -.05    .04   -.04   -.04    .07    .07    .05    .03    .05    .05    .10   -.03    .05    .06    .08   -.02
      Transportation................    .00    .03    .04    .01   -.04   -.07   -.01    .07   -.05    .02    .02    .13   -.01    .00   -.01    .06    .06    .05    .11
      Medical care..................    .49    .49    .56    .59    .67    .59    .59    .45    .42    .31    .59    .37    .56    .64    .54    .53    .50    .66    .58
      Recreation....................    .10    .11    .06    .09    .07    .04    .16    .04    .15    .07    .21    .17    .00    .10    .02    .14    .02    .02    .02
      Other.........................    .14    .26    .21   -.08    .12    .20   -.12    .10    .35    .22    .19    .44    .02    .33    .29    .11    .18    .26    .20

  Gross private domestic investment.    .58   1.82   1.00   1.92    .30    .87   -.14   -.03    .42   2.53   1.78   1.52   3.10    .75   1.11   1.42   -.63    .87   2.54

    Fixed investment................    .54   1.47   1.29  -1.04   -.23   -.12   -.21    .13   1.26   2.15   1.03   1.04   2.22   1.31   1.13   1.12   1.51   1.31    .65
      Nonresidential................    .13    .92    .88  -1.50   -.66   -.21   -.52   -.10    .79   1.08    .43    .76   1.29   1.15   1.04    .58    .90    .88    .48
        Structures..................   -.11    .06    .05   -.60   -.58   -.44   -.14   -.22    .32    .00    .03   -.09    .22    .04    .12   -.05    .07    .06    .09
        Equipment and software......    .24    .86    .82   -.90   -.09    .23   -.38    .12    .47   1.09    .40    .85   1.07   1.12    .92    .64    .83    .82    .39
          Information processing
           equipment and software...    .19    .49    .48   -.28    .06    .23   -.38    .21    .20    .79    .52    .61    .38    .31    .34    .72    .53    .42    .32
            Computers and peripheral
             equipment..............    .09    .19    .24    .15   -.06    .16   -.04    .07    .10    .21    .17    .20    .18    .16    .27    .31    .23    .11    .28
            Software................    .06    .11    .17   -.04    .15    .12   -.17    .04    .04    .29    .15    .08    .05    .10    .09    .22    .29    .14    .09
            Other...................    .05    .19    .08   -.38   -.03   -.05   -.17    .10    .05    .29    .20    .33    .16    .05   -.02    .18    .01    .17   -.06
          Industrial equipment......    .00    .04    .09    .01   -.12    .08    .01    .15   -.12   -.04   -.14    .19   -.05    .30    .06    .23   -.27    .20    .16
          Transportation equipment..   -.03    .15    .17   -.53   -.16   -.07   -.02   -.25    .36    .01   -.16   -.04    .56    .23    .39   -.16    .33    .18   -.19
          Other equipment...........    .08    .18    .09   -.10    .14    .00    .02    .01    .04    .33    .18    .09    .18    .28    .13   -.14    .23    .02    .10
      Residential...................    .41    .55    .41    .46    .43    .09    .30    .23    .47   1.07    .59    .28    .93    .15    .09    .54    .62    .43    .17

    Change in private inventories...    .05    .35   -.29   2.95    .53    .98    .08   -.16   -.84    .38    .75    .48    .87   -.56   -.03    .29  -2.14   -.43   1.89
      Farm..........................    .03    .03   -.07    .24   -.39    .31    .03    .17   -.21   -.07    .19   -.20    .45   -.01   -.28   -.11   -.09   -.02    .02
      Nonfarm.......................    .02    .32   -.22   2.71    .92    .67    .04   -.33   -.63    .45    .57    .68    .42   -.55    .25    .40  -2.05   -.42   1.87

  Net exports of goods and services.   -.46   -.73   -.29   -.97   -.62   -.49  -1.52    .08   -.66    .48   -.47  -1.16  -1.37   -.17   -.98   -.40   1.11   -.12  -1.36

    Exports.........................    .17    .80    .70    .47    .96    .27   -.31   -.29   -.20   1.04   1.69    .49    .67    .53    .70    .74   1.07    .26    .52
      Goods.........................    .12    .59    .51   -.11    .88    .14   -.64    .09    .00    .58   1.05    .50    .53    .55    .25    .37   1.08    .23    .56
      Services......................    .05    .22    .18    .59    .08    .13    .33   -.38   -.20    .46    .64   -.01    .14   -.02    .44    .37   -.01    .03   -.05

    Imports.........................   -.63  -1.53   -.98  -1.44  -1.58   -.76  -1.21    .37   -.46   -.56  -2.16  -1.65  -2.03   -.70  -1.68  -1.14    .04   -.38  -1.88
      Goods.........................   -.56  -1.30   -.89   -.95  -1.65   -.72   -.90    .32   -.71   -.10  -1.91  -1.41  -1.71   -.59  -1.60  -1.05    .15   -.46  -1.76
      Services......................   -.07   -.23   -.09   -.48    .07   -.04   -.31    .05    .26   -.46   -.25   -.23   -.32   -.11   -.08   -.10   -.11    .09   -.12

  Government consumption expenditures
   and gross investment.............    .53    .41    .34    .79    .88    .43    .89   -.05   1.37    .11    .10    .62    .43    .35    .17    .35    .47    .54   -.15

    Federal.........................    .45    .36    .16    .36    .76    .20    .64    .03   1.40   -.14    .21    .71    .22    .25   -.04    .17    .17    .52   -.18
      National defense..............    .37    .32    .12    .14    .45    .17    .59   -.15   1.46   -.31    .35    .60    .04    .41   -.16    .14    .17    .46   -.44
        Consumption expenditures....    .33    .26    .11    .13    .29    .07    .67   -.19   1.35   -.34    .32    .46    .01    .39   -.26    .34    .04    .37   -.49
        Gross investment............    .04    .06    .01    .01    .16    .10   -.08    .04    .11    .03    .03    .14    .02    .02    .10   -.20    .13    .09    .05
      Nondefense....................    .08    .04    .04    .22    .31    .03    .05    .18   -.06    .17   -.14    .11    .19   -.16    .12    .03   -.01    .06    .26
       Consumption expenditures.....    .08    .04    .02    .14    .21    .11    .07    .18   -.19    .29   -.10    .11    .04   -.04    .08    .02   -.09    .08    .14
       Gross investment.............    .00    .00    .02    .07    .10   -.08   -.02    .00    .14   -.12   -.04    .00    .15   -.12    .04    .01    .08   -.02    .12

    State and local.................    .08    .05    .17    .43    .12    .23    .25   -.08   -.04    .25   -.11   -.09    .21    .10    .21    .19    .31    .03    .03
        Consumption expenditures....    .06    .04    .11    .30    .24    .17    .15   -.02   -.01   -.01    .02    .00    .07    .14    .16    .08    .08    .17    .09
        Gross investment............    .02    .01    .06    .12   -.12    .06    .10   -.07   -.03    .26   -.13   -.08    .14   -.04    .05    .11    .23   -.14   -.06

Addenda:
    Goods...........................   1.10   2.06   1.49   1.30    .49   1.69  -1.74   1.38    .75   5.19    .96   2.29   1.53   2.10   1.26   1.41   1.58   1.70    .73
    Services........................   1.30   1.59   1.54   1.43   1.95    .98   1.65    .41   2.15    .78   2.20   1.90    .71   1.75   1.82   1.86    .88   2.09    .65
    Structures......................    .31    .57    .49    .01   -.26   -.29    .29   -.08    .76   1.28    .41    .06   1.26    .13    .23    .53    .85    .35    .28
    Motor vehicle output............    .14    .16    .12    .53    .20    .40    .01    .00   -.09    .72   -.13    .49   -.26    .11    .29    .15   -.01    .56   -.64
    Final sales of computers........    .15    .15    .28   -.06    .01    .20    .11    .05    .10    .45    .09    .08    .08    .10    .36    .37    .32    .16    .33
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                            --------------------------------------------          --------------------------------------------  -------------------------
                                       2005r   IV 04     I 05    II 05   III 05    IV 05r    2005r   IV 04     I 05    II 05   III 05    IV 05r    2005r  III 05    IV 05r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 12,487.1 11,995.2 12,198.8 12,378.0 12,605.7 12,766.1 11,134.8 10,897.1 10,999.3 11,089.2 11,202.3 11,248.3    379.1    113.1     46.0

Personal consumption expenditures.  8,745.7  8,416.1  8,535.8  8,677.0  8,844.0  8,926.2  7,856.9  7,698.8  7,764.9  7,829.5  7,907.9  7,925.4    268.3     78.4     17.5

  Durable goods...................  1,026.5  1,008.6  1,017.3  1,035.5  1,050.9  1,002.1  1,138.4  1,115.1  1,122.3  1,143.9  1,169.7  1,117.7     48.5     25.8    -52.0
    Motor vehicles and parts......    446.8    452.8    449.6    458.5    468.7    410.5    452.8    464.6    455.0    463.3    477.3    415.5     -4.2     14.0    -61.8
    Furniture and household
     equipment....................    373.2    360.6    366.9    370.0    374.9    381.1    485.0    456.8    469.2    475.9    490.5    504.4     42.1     14.6     13.9
    Other.........................    206.4    195.2    200.8    207.0    207.2    210.5    211.3    200.2    206.5    212.9    211.0    214.7     15.5     -1.9      3.7

  Nondurable goods................  2,564.4  2,437.1  2,476.6  2,533.7  2,604.9  2,642.5  2,297.9  2,236.5  2,265.6  2,285.9  2,305.8  2,334.2     97.5     19.9     28.4
    Food..........................  1,218.6  1,166.4  1,184.2  1,207.1  1,229.9  1,253.3  1,081.1  1,047.4  1,060.9  1,072.2  1,088.7  1,102.8     52.0     16.5     14.1
    Clothing and shoes............    345.4    335.2    340.5    344.9    343.9    352.3    376.5    363.0    367.9    374.4    377.2    386.7     21.5      2.8      9.5
    Gasoline, fuel oil, and other
     energy goods.................    310.6    267.9    275.2    296.4    338.3    332.6    204.9    203.0    207.7    205.2    203.0    203.5      3.5     -2.2       .5
    Other.........................    689.8    667.6    676.8    685.3    692.8    704.2    639.7    625.5    631.2    637.7    641.9    648.0     23.0      4.2      6.1

  Services........................  5,154.9  4,970.4  5,041.8  5,107.8  5,188.3  5,281.6  4,436.4  4,362.1  4,392.0  4,417.6  4,453.5  4,482.6    125.5     35.9     29.1
    Housing.......................  1,281.5  1,244.7  1,260.6  1,275.3  1,288.2  1,301.8  1,103.7  1,089.5  1,095.6  1,101.4  1,106.6  1,111.0     25.3      5.2      4.4
    Household operation...........    481.8    457.9    465.3    471.4    484.4    506.1    416.3    412.4    414.3    413.8    418.5    418.5     10.7      4.7       .0
      Electricity and gas.........    201.7    185.9    189.5    192.4    202.1    222.9    155.0    154.7    155.2    153.2    155.5    156.1      5.8      2.3       .6
      Other household operation...    280.1    272.1    275.8    279.0    282.3    283.2    261.0    257.3    258.8    260.5    262.7    262.0      4.7      2.2      -.7
    Transportation................    321.2    309.2    312.3    318.5    324.1    329.9    287.3    283.0    284.6    286.3    287.6    290.6      3.9      1.3      3.0
    Medical care..................  1,510.0  1,441.6  1,470.5  1,492.6  1,522.0  1,554.7  1,291.6  1,255.4  1,269.1  1,282.3  1,299.6  1,315.2     58.1     17.3     15.6
    Recreation....................    355.2    344.3    350.3    353.1    356.6    360.7    308.6    304.1    307.7    308.3    308.9    309.4      6.2       .6       .5
    Other.........................  1,205.3  1,172.6  1,182.8  1,196.8  1,213.0  1,228.4  1,027.8  1,016.6  1,019.5  1,024.3  1,031.1  1,036.5     21.1      6.8      5.4

Gross private domestic investment.  2,105.0  2,004.5  2,058.5  2,054.4  2,099.5  2,207.5  1,919.8  1,863.9  1,902.9  1,885.0  1,909.4  1,981.9    110.0     24.4     72.5

  Fixed investment................  2,086.1  1,952.6  1,998.7  2,058.5  2,119.2  2,168.0  1,897.1  1,811.3  1,842.2  1,884.7  1,921.5  1,940.0    142.0     36.8     18.5
    Nonresidential................  1,329.8  1,252.9  1,280.1  1,313.5  1,348.9  1,376.7  1,289.0  1,235.1  1,252.2  1,279.0  1,305.2  1,319.7    102.3     26.2     14.5
      Structures..................    335.1    309.8    315.9    325.6    340.2    359.0    253.4    252.3    251.0    252.7    254.1    256.0      5.0      1.4      1.9
      Equipment and software......    994.7    943.1    964.3    987.9  1,008.7  1,017.7  1,050.8    994.2  1,014.2  1,040.9  1,067.5  1,080.6    103.2     26.6     13.1
        Information processing
         equipment and software...    488.9    456.3    474.6    486.6    494.5    500.1    590.6    539.7    565.1    584.6    600.2    612.4     68.2     15.6     12.2
          Computers and peripheral
           equipment..............    105.7     97.5    102.7    105.6    105.0    109.6    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    197.8    181.1    188.3    197.3    201.3    204.3    209.9    192.8    199.8    209.1    213.7    216.9     21.1      4.6      3.2
          Other...................    185.4    177.8    183.6    183.6    188.2    186.2    198.7    190.3    196.3    196.5    202.1    200.1      9.8      5.6     -2.0
        Industrial equipment......    161.3    152.6    161.3    154.9    161.3    167.5    149.1    144.5    150.9    143.2    148.8    153.6      9.7      5.6      4.8
        Transportation equipment..    171.5    168.4    163.8    172.8    177.9    171.6    157.0    153.3    148.8    158.1    163.3    157.9     18.3      5.2     -5.4
        Other equipment...........    172.9    165.8    164.6    173.7    175.0    178.5    159.9    158.0    153.9    160.6    161.1    163.9      9.9       .5      2.8
    Residential...................    756.3    699.7    718.5    745.0    770.3    791.4    601.9    571.0    584.1    599.3    610.0    614.2     40.1     10.7      4.2

  Change in private inventories...     18.9     51.9     59.9     -4.2    -19.7     39.4     20.3     50.1     58.2     -1.7    -13.3     37.9    -31.7    -11.6     51.2
    Farm..........................     -8.4     -3.0     -6.5     -8.5     -9.5     -8.9     -3.7      -.2     -2.3     -4.2     -4.5     -3.7     -6.0      -.3       .8
    Nonfarm.......................     27.2     54.8     66.4      4.3    -10.2     48.3     25.0     50.8     61.8      3.4     -8.1     43.0    -24.9    -11.5     51.1

Net exports of goods and services.   -726.5   -685.4   -697.5   -691.0   -730.4   -787.1   -633.1   -634.1   -645.4   -614.2   -617.5   -655.2    -31.8     -3.3    -37.7

  Exports.........................  1,301.2  1,217.1  1,253.2  1,297.1  1,314.6  1,339.8  1,195.3  1,144.5  1,165.3  1,195.4  1,202.7  1,217.6     77.4      7.3     14.9
    Goods.........................    905.6    845.0    865.4    904.7    914.8    937.4    841.1    800.3    810.7    841.3    847.9    864.4     57.5      6.6     16.5
    Services......................    395.6    372.1    387.7    392.5    399.9    402.4    354.1    344.0    354.3    353.9    354.8    353.5     20.0       .9     -1.3

  Imports.........................  2,027.7  1,902.5  1,950.6  1,988.1  2,045.1  2,126.9  1,828.3  1,778.6  1,810.7  1,809.6  1,820.2  1,872.9    109.1     10.6     52.7
    Goods.........................  1,700.7  1,588.4  1,627.6  1,661.8  1,718.6  1,794.8  1,553.0  1,507.3  1,537.3  1,532.9  1,546.1  1,595.8    100.3     13.2     49.7
    Services......................    327.0    314.1    323.0    326.3    326.4    332.1    276.7    272.3    274.8    277.7    275.5    278.7      9.6     -2.2      3.2

Government consumption expenditures
 and gross investment.............  2,362.9  2,260.0  2,302.0  2,337.6  2,392.7  2,419.6  1,987.1  1,962.8  1,971.9  1,984.1  1,998.1  1,994.1     34.8     14.0     -4.0

  Federal.........................    877.7    840.8    860.2    869.8    892.2    888.5    740.5    727.6    731.8    736.1    749.5    744.6     16.8     13.4     -4.9
    National defense..............    587.1    562.0    575.3    582.5    601.7    589.1    493.6    483.7    487.3    491.7    503.6    492.0     12.3     11.9    -11.6
      Consumption expenditures....    515.9    490.1    508.9    512.3    528.6    514.0    424.1    413.4    421.9    422.9    432.2    419.6     10.8      9.3    -12.6
      Gross investment............     71.2     71.9     66.4     70.2     73.1     75.1     70.0     71.2     65.3     69.2     72.0     73.5      1.5      2.8      1.5
    Nondefense....................    290.6    278.8    285.0    287.3    290.5    299.4    246.6    243.6    244.3    244.2    245.6    252.5      4.4      1.4      6.9
      Consumption expenditures....    253.7    245.1    250.7    250.5    254.3    259.1    210.6    209.9    210.4    208.2    210.1    213.7      2.0      1.9      3.6
      Gross investment............     36.9     33.8     34.3     36.8     36.3     40.3     36.3     33.6     33.8     36.3     35.6     39.4      2.9      -.7      3.8

  State and local.................  1,485.2  1,419.1  1,441.7  1,467.7  1,500.4  1,531.1  1,246.3  1,235.0  1,239.8  1,247.8  1,248.5  1,249.3     17.9       .7       .8
      Consumption expenditures....  1,193.0  1,143.1  1,159.0  1,175.7  1,205.7  1,231.7    991.1    984.8    986.8    988.8    993.3    995.6     11.6      4.5      2.3
      Gross investment............    292.2    276.1    282.7    292.0    294.7    299.4    255.4    250.3    253.2    259.4    255.4    253.7      6.5     -4.0     -1.7

Residual..........................    .....    .....    .....    .....    .....    .....    -63.6    -37.5    -48.0    -60.1    -69.6    -77.1    .....    .....    .....

Addenda:
  Final sales of domestic product. 12,468.3 11,943.3 12,138.9 12,382.1 12,625.4 12,726.7 11,112.8 10,846.0 10,940.3 11,089.2 11,214.4 11,207.5    410.4    125.2     -6.9
  Gross domestic purchases........ 13,213.7 12,680.6 12,896.3 13,069.0 13,336.1 13,553.3 11,759.1 11,522.0 11,635.4 11,694.8 11,811.2 11,895.0    410.4    116.4     83.8
  Final sales to domestic
   purchasers..................... 13,194.8 12,628.7 12,836.4 13,073.1 13,355.8 13,513.8 11,737.0 11,470.7 11,576.2 11,694.6 11,823.0 11,854.1    441.7    128.4     31.1

  Gross domestic product.......... 12,487.1 11,995.2 12,198.8 12,378.0 12,605.7 12,766.1 11,134.8 10,897.1 10,999.3 11,089.2 11,202.3 11,248.3    379.1    113.1     46.0
  Plus: Income receipts from
   the rest of the world..........    507.6    462.4    462.3    489.4    520.8    558.0    455.5    423.2    420.4    441.7    465.5    494.4     71.8     23.8     28.9
  Less: Income payments to
   the rest of the world..........    474.0    425.6    422.9    453.9    476.6    542.6    423.7    388.5    383.3    408.2    424.4    478.9     90.2     16.2     54.5
  Equals: Gross national product.. 12,520.8 12,032.0 12,238.2 12,413.5 12,650.0 12,781.6 11,166.4 10,931.8 11,036.3 11,122.5 11,243.2 11,263.5    360.7    120.7     20.3

  Net domestic product............ 10,913.1 10,553.2 10,750.4 10,920.7 10,741.9 11,239.3  9,640.1  9,514.2  9,608.3  9,689.7  9,456.1  9,806.5    274.6   -233.6    350.4
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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   2005r  I 02  II 02 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 05r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.0    2.6    2.8    1.7    1.5    1.6    2.2    3.1    1.1    1.8    1.9    3.6    3.9    1.5    2.7    3.1    2.6    3.3    3.5

Personal consumption expenditures...    1.9    2.6    2.8     .9    2.8    1.8    1.7    3.0     .6    2.0    1.3    3.9    3.8    1.5    3.1    2.3    3.3    3.7    2.9
  Durable goods.....................   -3.5   -1.9    -.5   -3.2   -1.9   -1.8   -2.7   -4.3   -4.3   -4.4   -4.1     .1    -.1   -2.4     .6     .9    -.5   -3.0    -.8
  Nondurable goods..................    2.0    3.3    3.7     .2    5.4     .9    1.2    5.6   -2.4    3.1     .6    6.0    6.6     .1    4.5    1.3    5.7    7.9     .8
  Services..........................    3.0    3.2    3.1    2.2    2.6    3.0    2.8    3.4    3.2    2.8    2.8    3.6    3.3    2.9    3.0    3.0    2.9    3.1    4.6

Gross private domestic investment...    1.6    3.1    3.1    -.2     .5     .2    2.9    2.9    -.5    1.7    3.7    3.4    4.6    3.2    2.3    2.6    2.7    3.7    5.2
  Fixed investment..................    1.7    3.2    3.1    -.3     .5     .2    3.0    3.1    -.5    1.7    3.9    3.5    4.6    3.0    2.2    2.6    2.7    4.0    5.4
    Nonresidential..................     .3    1.3    2.1    -.1    -.2    -.4    1.1     .1   -1.0    1.2    1.9    1.2    1.8     .9    1.1    3.1    1.9    2.5    3.8
      Structures....................    3.5    5.5   10.1    3.8    5.2    4.3    5.1    4.0     .3    2.9    4.6    7.1    6.8    6.6    5.6   10.3    9.9   16.5   20.3
      Equipment and software........    -.9    -.1    -.4   -1.5   -2.1   -2.0    -.3   -1.2   -1.4     .6    1.0    -.8     .2    -.9    -.4     .9    -.7   -1.8   -1.3
    Residential.....................    4.8    6.7    4.8    -.8    2.2    1.5    7.0    9.3     .3    2.7    7.6    8.0    9.7    6.9    4.2    1.6    4.3    6.5    8.3
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    2.1    3.6    3.7   -1.1    2.8    3.0     .6    4.1    1.0     .9    2.9    5.9    4.8    1.7    4.3    4.6    3.7    2.9    2.7
    Goods...........................    2.0    3.7    3.1   -1.4    2.2    3.3     .5    3.6    1.6    -.7    4.1    6.5    5.3    1.0    3.8    4.5    2.9    1.3    2.1
    Services........................    2.5    3.1    5.0    -.3    4.3    2.1     .7    5.2    -.3    4.6     .1    4.4    3.7    3.2    5.6    4.7    5.4    6.7    4.0
  Imports...........................    3.4    5.0    6.1   -1.7   10.3    3.5     .6   11.2   -4.4    2.6    1.1    9.6    6.6    5.7    6.8    2.9    8.2    9.4    4.4
    Goods...........................    2.9    5.0    6.4   -2.0   10.8    2.6     .4   11.9   -6.7    2.5     .5   10.1    7.9    5.4    6.9    1.9    9.9   10.6    4.8
    Services........................    5.8    4.9    4.6    -.3    7.6    8.1    1.4    8.0    7.5    3.2    4.2    7.5     .3    7.4    6.5    7.9    -.2    3.4    2.2

Government consumption expenditures
 and gross investment...............    3.7    3.7    4.8    5.2    2.9    2.6    3.6    8.9     .0    2.5    1.4    6.2    5.0    3.2    4.1    5.7    3.7    6.7    5.4
  Federal...........................    3.9    4.2    3.6   10.1     .5    1.0    4.6    9.9    1.3    1.2    1.2    9.7    4.9    2.2    2.6    7.0    2.1    3.0     .9
    National defense................    4.4    4.0    3.6    9.1    1.3    2.4    6.9    9.3    1.1    1.3    1.5    7.8    5.6    2.8    2.7    6.6    1.4    3.5     .9
    Nondefense......................    3.0    4.6    3.8   12.0    -.8   -1.4     .5   11.0    1.6    1.0     .7   13.7    3.6    1.2    2.5    7.9    3.6    2.1     .9
  State and local...................    3.7    3.4    5.4    2.7    4.2    3.4    3.0    8.4    -.7    3.2    1.6    4.2    5.0    3.7    4.9    4.9    4.7    9.0    8.2

Addenda:
  Final sales of domestic product...    2.0    2.6    2.8    1.7    1.5    1.6    2.3    3.1    1.1    1.8    1.9    3.6    3.8    1.4    2.7    3.1    2.6    3.3    3.5
  Gross domestic purchases..........    2.2    2.9    3.2    1.5    2.5    1.7    2.2    4.1     .4    2.0    1.7    4.2    4.1    2.0    3.2    2.9    3.3    4.2    3.7
  Final sales to domestic
   purchasers.......................    2.2    2.9    3.2    1.5    2.5    1.7    2.2    4.1     .4    2.0    1.7    4.2    4.1    2.0    3.2    2.9    3.3    4.3    3.7
  Gross national product (GNP)......    2.0    2.6    2.8    1.7    1.5    1.6    2.2    3.1    1.1    1.8    1.9    3.6    3.8    1.5    2.7    3.1    2.6    3.3    3.5

  Implicit price deflators:
    GDP.............................    2.0    2.6    2.8    1.5    1.4    1.5    2.2    3.1    1.1    1.9    1.8    3.7    3.9    1.3    2.7    3.0    2.6    3.3    3.5
    Gross domestic purchases........    2.2    2.9    3.2    1.3    2.4    1.6    2.2    4.1     .4    2.1    1.6    4.3    4.1    1.9    3.2    2.9    3.3    4.2    3.7
    GNP.............................    2.0    2.6    2.8    1.4    1.5    1.5    2.3    3.1    1.1    1.9    1.8    3.7    3.8    1.3    2.7    3.0    2.6    3.3    3.5
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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       2005r     IV 04       I 05      II 05     III 05      IV 05r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    105.130    109.562    113.424    111.003    112.044    112.959    114.112    114.580

Personal consumption expenditures..........    108.416    112.601    116.582    114.236    115.217    116.176    117.338    117.598
  Durable goods............................    119.134    126.245    131.864    129.166    129.999    132.499    135.492    129.468
  Nondurable goods.........................    107.938    113.000    118.008    114.857    116.351    117.392    118.413    119.875
  Services.................................    106.493    109.725    112.919    111.027    111.789    112.440    113.353    114.094

Gross private domestic investment..........     93.195    104.286    110.621    107.398    109.645    108.615    110.023    114.201
  Fixed investment.........................     95.297    104.534    112.990    107.880    109.722    112.252    114.443    115.544
    Nonresidential.........................     88.063     96.314    104.622    100.246    101.633    103.806    105.935    107.116
      Structures...........................     77.621     79.314     80.925     80.554     80.145     80.680     81.123     81.753
      Equipment and software...............     92.154    103.126    114.355    108.201    110.376    113.274    116.170    117.600
    Residential............................    113.989    125.714    134.678    127.772    130.695    134.100    136.484    137.434
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     94.064    101.970    109.028    104.398    106.295    109.037    109.710    111.070

Imports of goods and services..............    105.205    116.495    123.892    120.518    122.698    122.620    123.340    126.908

Government consumption expenditures and
 gross investment..........................    111.009    113.398    115.420    114.008    114.537    115.248    116.063    115.830
  Federal..................................    118.839    125.038    127.945    125.704    126.446    127.188    129.491    128.657
  State and local..........................    107.042    107.487    109.058    108.069    108.489    109.183    109.246    109.313

Addenda:
  Final sales of domestic product..........    105.564    109.650    113.856    111.122    112.088    113.613    114.896    114.825
  Gross domestic purchases.................    106.285    111.301    115.325    113.000    114.112    114.695    115.836    116.658
  Final sales to domestic purchasers.......    106.708    111.394    115.750    113.124    114.164    115.332    116.598    116.905
  Gross national product...................    105.370    109.637    113.296    110.916    111.977    112.851    114.076    114.282
-----------------------------------------------------------------------------------------------------------------------------------
  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       2005r     IV 04       I 05      II 05     III 05      IV 05r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    106.310    109.102    112.176    110.111    110.950    111.655    112.567    113.532

Personal consumption expenditures
 (PCE).....................................    105.520    108.246    111.313    109.326    109.936    110.832    111.846    112.637
  Durable goods............................     92.372     90.631     90.168     90.449     90.648     90.527     89.839     89.659
  Nondurable goods.........................    104.151    107.634    111.596    108.982    109.327    110.854    112.985    113.218
  Services.................................    109.246    112.695    116.195    113.955    114.803    115.633    116.508    117.834

Gross private domestic investment..........    103.311    106.555    109.836    107.733    108.427    109.164    110.169    111.586
  Fixed investment.........................    103.432    106.697    109.970    107.831    108.522    109.254    110.318    111.787
    Nonresidential.........................     99.764    101.025    103.161    101.455    102.244    102.715    103.358    104.327
      Structures...........................    113.889    120.124    132.228    122.827    125.876    128.886    133.914    140.234
      Equipment and software...............     95.133     95.022     94.661     94.854     95.067     94.910     94.491     94.174
    Residential............................    112.379    119.935    125.661    122.574    123.062    124.359    126.335    128.889
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............    101.398    104.999    108.867    106.366    107.559    108.534    109.323    110.052

Imports of goods and services..............     99.610    104.571    110.937    107.026    107.783    109.925    112.413    113.626

Government consumption expenditures and
 gross investment..........................    109.460    113.505    118.915    115.148    116.747    117.820    119.751    121.343
  Federal..................................    109.740    114.354    118.525    115.575    117.550    118.168    119.056    119.327
  State and local..........................    109.303    113.022    119.170    114.914    116.291    117.635    120.186    122.568

Addenda:
  PCE excluding food and energy............    105.082    107.156    109.311    107.980    108.617    109.083    109.450    110.095
  Market-based PCE\1\......................    105.009    107.422    110.336    108.378    108.948    109.860    110.917    111.619
  Market-based PCE excluding food
   and energy\1\...........................    104.348    105.898    107.678    106.514    107.106    107.506    107.797    108.302
  Final sales of domestic product..........    106.330    109.124    112.196    110.124    110.963    111.667    112.589    113.563
  Gross domestic purchases.................    105.863    108.899    112.401    110.092    110.883    111.785    112.953    113.981
  Final sales to domestic purchasers.......    105.883    108.921    112.421    110.106    110.898    111.798    112.976    114.013
  Gross national product...................    106.304    109.094    112.158    110.100    110.933    111.638    112.550    113.514

  Implicit price deflators:
    Gross domestic product.................    106.305    109.099    112.145    110.077    110.905    111.622    112.527    113.494
    Final sales of domestic product........    106.330    109.124    112.197    110.117    110.956    111.659    112.582    113.556
    Gross domestic purchases...............    105.858    108.896    112.370    110.055    110.837    111.750    112.911    113.941
    Final sales to domestic purchasers.....    105.883    108.920    112.421    110.095    110.886    111.787    112.965    114.001
    Gross national product.................    106.299    109.091    112.129    110.064    110.890    111.607    112.512    113.477
-----------------------------------------------------------------------------------------------------------------------------------
  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 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    2005r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       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     2.7     4.2     3.5

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     2.9     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     6.6     6.0     4.5
  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     4.7     4.4
  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     2.0     3.0     2.9

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     3.9    11.9     6.1
  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     3.6     9.7     8.1
    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     1.3     9.4     8.6
      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    -4.2     2.2     2.0
      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     3.2    11.9    10.9
    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    10.3     7.1
  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     1.8     8.4     6.9
    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     8.9     7.3
    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     1.7     7.4     6.0
  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     4.6    10.7     6.3
    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    11.0     6.9
    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     3.0     9.6     3.6

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     2.8     2.2     1.8
  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     6.9     5.2     2.3
    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     8.8     7.0     2.6
    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     1.8     1.8
  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      .6      .4     1.5

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     2.7     3.9     3.8
  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     3.0     4.7     3.6
  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     3.0     4.4     3.9
  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     3.0     4.0     3.3
  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     2.4     3.4     1.4

  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     2.2     2.9     3.2
    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     1.8     2.4     2.5
    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     2.0     2.6     2.8
    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     1.8     2.5     2.7
    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     1.9     2.6     2.8
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           I 02   II 02  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 05r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     1.0     1.3     2.2     1.9     1.6     2.0     3.2     4.0     4.7     4.6     3.8     3.8     3.6     3.6     3.6     3.2

Personal consumption expenditures
 (PCE).................................     2.8     3.1     3.2     1.9     2.1     2.4     3.3     3.8     4.3     3.9     3.5     3.8     3.5     3.9     3.8     2.9
  Durable goods........................     7.8     8.9    11.0     1.2     3.2     6.0     7.9     9.2     9.4     5.8     3.7     5.2     4.7     6.7     6.3      .2
  Nondurable goods.....................     2.6     3.0     2.4     2.1     2.1     2.2     4.2     4.1     4.9     5.1     4.0     4.6     4.3     4.6     4.5     4.4
  Services.............................     1.8     2.0     2.0     1.9     1.9     1.8     2.0     2.5     3.0     2.9     3.2     3.1     2.9     3.0     3.0     2.8

Gross private domestic investment......    -7.7    -5.4    -1.4     4.9     1.5     1.7     4.4     7.7    10.5    15.1    11.8    10.4    10.1     4.0     4.1     6.3
  Fixed investment.....................    -7.6    -5.8    -4.9    -2.5     -.7     1.8     5.6     7.7     9.3    10.9     9.3     9.4     9.4     8.0     7.9     7.1
    Nonresidential.....................   -11.7    -9.8    -8.7    -6.5    -3.5      .0     3.2     5.6     7.9     9.2     9.4    10.9    10.3     9.2     8.3     6.9
      Structures.......................   -13.9   -17.4   -22.0   -14.9   -12.2    -4.5     -.5     1.2     2.6     1.5     1.9     2.7     3.1     1.7     1.9     1.5
      Equipment and software...........   -10.9    -6.8    -3.2    -3.4     -.3     1.6     4.4     7.2     9.8    11.9    12.0    13.8    12.8    11.7    10.5     8.7
    Residential........................     3.4     4.3     4.4     7.0     5.6     5.6    10.5    11.8    11.9    13.9     9.1     6.6     7.7     6.1     7.2     7.6
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................    -9.5    -4.0     1.6     3.8     1.7    -1.3      .7     6.0     8.1    10.5     9.0     6.1     6.7     7.7     6.9     6.4
    Goods..............................   -12.2    -4.9     1.1     1.1     1.9    -1.5      .2     6.7     8.3    10.4    10.1     6.8     6.2     8.2     6.9     8.0
    Services...........................    -2.8    -2.0     2.8    10.2     1.4    -1.0     1.9     4.5     7.8    10.9     6.4     4.6     7.9     6.5     6.9     2.8
  Imports..............................    -4.1     2.1     6.4     9.7     6.0     3.8     3.4     5.1     8.8    11.7    11.8    10.6     9.4     5.7     5.1     5.3
    Goods..............................    -5.0     3.2     7.2     9.9     6.8     4.5     3.1     5.3     9.2    11.2    12.3    11.1    10.1     6.1     5.8     5.9
    Services...........................      .7    -3.0     2.4     8.8     2.4      .5     5.0     4.2     7.3    13.8     9.7     7.7     6.2     3.9     2.0     2.4

Government consumption expenditures
 and gross investment..................     4.7     4.0     4.9     4.0     2.9     3.5     3.0     1.9     2.9     1.7     2.0     2.1     1.7     1.8     2.0     1.6
  Federal..............................     5.9     6.7     7.5     7.8     6.4     8.6     7.2     5.5     8.1     3.6     5.1     4.2     2.1     1.9     2.9     2.3
    National defense...................     5.6     7.4     7.9     8.4     6.5    12.2     9.2     7.5    12.1     3.7     7.8     4.9     2.3     3.0     3.3     1.7
    Nondefense.........................     6.3     5.5     6.8     6.8     6.2     2.1     3.6     1.6      .8     3.5      .0     2.8     1.8     -.2     2.1     3.6
  State and local......................     4.1     2.6     3.6     2.1     1.1      .7      .8      .0      .0      .5      .2      .9     1.5     1.7     1.5     1.2

Addenda:
  Final sales of domestic product......     1.0     1.2     1.7      .8     1.3     2.0     3.3     4.0     4.5     4.0     3.4     3.6     3.5     4.2     4.3     3.3
  Gross domestic purchases.............     1.4     1.9     2.8     2.7     2.2     2.5     3.4     4.0     4.9     5.1     4.4     4.5     4.2     3.5     3.5     3.2
  Final sales to domestic purchasers...     1.4     1.9     2.3     1.6     1.9     2.5     3.6     4.0     4.7     4.5     4.1     4.3     4.1     4.1     4.1     3.3
  Gross national product...............      .9     1.0     2.3     1.6     1.8     2.4     3.5     4.4     5.0     4.4     3.6     3.2     3.2     3.5     3.6     3.0
  Real disposable personal income......     3.7     4.6     1.4     2.9      .7     1.4     3.6     3.8     4.1     3.2     2.1     4.1     2.3     2.1     1.0      .5

  Price indexes:
    Gross domestic purchases...........     1.3     1.4     1.6     1.9     2.6     2.1     2.1     2.0     2.1     3.0     3.0     3.4     3.1     2.9     3.4     3.5
    Gross domestic purchases excluding
     food and energy...................     2.0     1.9     1.9     1.7     1.9     1.7     1.7     1.7     1.9     2.5     2.6     2.7     2.6     2.4     2.5     2.7
    GDP................................     2.0     1.6     1.6     1.7     2.1     2.0     2.1     2.0     2.1     2.8     2.7     2.9     2.8     2.5     2.9     3.1
    GDP excluding food and energy......     2.3     2.1     2.0     1.9     2.0     1.8     1.8     1.7     1.9     2.5     2.6     2.8     2.7     2.5     2.7     2.9
    PCE................................     1.2     1.2     1.5     1.8     2.3     1.8     1.8     1.7     1.9     2.7     2.6     3.1     2.7     2.5     3.1     3.0
    PCE excluding food and energy......     1.8     1.8     1.9     1.6     1.5     1.3     1.2     1.3     1.7     2.0     2.0     2.2     2.2     2.0     1.9     2.0
    Market-based PCE\1\................      .7      .9     1.1     1.7     2.3     1.7     1.8     1.6     1.7     2.5     2.3     2.8     2.4     2.4     3.1     3.0
    Market-based PCE excluding food
     and energy\1\.....................     1.5     1.5     1.5     1.4     1.3     1.2     1.1     1.0     1.3     1.5     1.5     1.7     1.8     1.6     1.6     1.7
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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       2005r     IV 04       I 05      II 05     III 05      IV 05r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   10,971.2   11,734.3   12,487.1   11,995.2   12,198.8   12,378.0   12,605.7   12,766.1

Plus: Income receipts from the rest of the
 world.....................................      343.7      415.4      507.6      462.4      462.3      489.4      520.8      558.0
Less: Income payments to the rest of the
 world.....................................      275.6      361.7      474.0      425.6      422.9      453.9      476.6      542.6

Equals: Gross national product.............   11,039.3   11,788.0   12,520.8   12,032.0   12,238.2   12,413.5   12,650.0   12,781.6

Less: Consumption of fixed capital.........    1,331.3    1,435.3    1,574.1    1,442.0    1,448.4    1,457.2    1,863.8    1,526.9
Less: Statistical discrepancy..............       47.1       76.8       42.8       30.6       39.4       78.3       44.3        9.2

Equals: National income....................    9,660.9   10,275.9   10,903.9   10,559.3   10,750.4   10,878.0   10,741.9   11,245.5
  Compensation of employees................    6,321.1    6,687.6    7,125.3    6,895.8    7,001.7    7,060.2    7,177.6    7,261.7
    Wage and salary accruals...............    5,111.1    5,389.4    5,723.7    5,562.9    5,629.9    5,672.3    5,762.3    5,830.1
    Supplements to wages and salaries......    1,210.0    1,298.1    1,401.6    1,332.9    1,371.8    1,387.9    1,415.3    1,431.6
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      810.2      889.6      938.7      900.9      917.9      936.6      932.4      967.7
  Rental income of persons with capital
   consumption adjustment..................      131.7      134.2       72.9      128.7      118.0      104.4      -11.1       80.3
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................    1,031.8    1,161.5    1,351.9    1,219.5    1,288.2    1,347.5    1,293.1    1,478.9
  Net interest and miscellaneous payments..      528.5      505.5      498.3      492.7      498.3      488.7      497.6      508.5
  Taxes on production and imports less
   subsidies...............................      754.8      809.4      848.0      824.4      833.2      848.0      853.4      857.2
  Business current transfer payments.......       81.6       91.1       80.2      102.6       99.0       99.6       21.8      100.3
  Current surplus of government
   enterprises.............................        1.3       -3.0      -11.3       -5.2       -6.1       -7.0      -22.8       -9.1

Addendum:
  Gross domestic income....................   10,924.2   11,657.5   12,444.4   11,964.6   12,159.4   12,299.7   12,561.4   12,757.0
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2003       2004       2005r     IV 04       I 05      II 05     III 05      IV 05r
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    9,169.1    9,713.3   10,248.3   10,024.8   10,073.4   10,185.7   10,250.4   10,483.7

  Compensation of employees, received......    6,321.1    6,687.6    7,125.3    6,895.8    7,001.7    7,060.2    7,177.6    7,261.7
    Wage and salary disbursements..........    5,111.1    5,389.4    5,723.7    5,562.9    5,629.9    5,672.3    5,762.3    5,830.1
    Supplements to wages and salaries......    1,210.0    1,298.1    1,401.6    1,332.9    1,371.8    1,387.9    1,415.3    1,431.6
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      810.2      889.6      938.7      900.9      917.9      936.6      932.4      967.7
    Farm...................................       27.7       35.8       20.8       24.6       24.7       19.6       18.0       21.0
    Nonfarm................................      782.4      853.8      917.8      876.3      893.2      917.1      914.3      946.7
  Rental income of persons with capital
   consumption adjustment..................      131.7      134.2       72.9      128.7      118.0      104.4      -11.1       80.3
  Personal income receipts on assets.......    1,338.7    1,396.5    1,457.4    1,493.6    1,407.9    1,439.8    1,468.9    1,512.9
    Personal interest income...............      917.6      905.9      945.7      907.4      915.4      936.0      951.2      980.1
    Personal dividend income...............      421.1      490.6      511.7      586.2      492.5      503.8      517.6      532.9
  Personal current transfer receipts.......    1,344.0    1,427.5    1,525.3    1,449.2    1,488.8    1,509.6    1,558.1    1,544.7

  Less: Contributions for government
   social insurance........................      776.6      822.2      871.2      843.5      861.0      864.9      875.4      883.6

Less: Personal current taxes...............      999.9    1,049.1    1,209.7    1,094.3    1,171.4    1,206.0    1,220.4    1,241.0

Equals: Disposable personal income.........    8,169.2    8,664.2    9,038.6    8,930.4    8,902.0    8,979.7    9,030.0    9,242.7

Less: Personal outlays.....................    7,996.3    8,512.5    9,072.1    8,725.0    8,854.6    9,001.2    9,173.9    9,258.5

Equals: Personal saving....................      172.8      151.8      -33.5      205.4       47.4      -21.5     -143.9      -15.8

  Personal saving as a percentage of
   disposable personal income..............        2.1        1.8        -.4        2.3         .5        -.2       -1.6        -.2

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    7,741.8    8,004.3    8,120.0    8,169.2    8,098.1    8,102.6    8,074.2    8,206.4
-----------------------------------------------------------------------------------------------------------------------------------
  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   IV 04    I 05   II 05  III 05   IV 05    2004    2005    I 05   II 05  III 05   IV 05   IV 05
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
 valuation and capital consumption
 adjustments......................... 1,031.8 1,161.5 1,351.9 1,219.5 1,288.2 1,347.5 1,293.1 1,478.9    12.6    16.4     5.6     4.6    -4.0    14.4    21.3

Less: Taxes on corporate income......   232.1   271.1   378.1   293.0   362.6   372.5   360.3   417.1    16.8    39.5    23.7     2.7    -3.3    15.8    42.3

Equals: Profits after tax with
 inventory valuation and capital
 consumption adjustments.............   799.7   890.3   973.8   926.4   925.6   975.0   932.8 1,061.8    11.3     9.4     -.1     5.3    -4.3    13.8    14.6
  Net dividends......................   423.2   493.0   514.2   589.3   494.9   506.3   520.1   535.4    16.5     4.3   -16.0     2.3     2.7     2.9    -9.1
  Undistributed profits with
   inventory valuation and capital
   consumption adjustments...........   376.5   397.3   459.6   337.2   430.7   468.7   412.6   526.4     5.5    15.7    27.7     8.8   -12.0    27.6    56.1

Cash flow:
  Net cash flow with inventory
   valuation and capital consumption
   adjustments....................... 1,130.8 1,196.9 1,303.3 1,143.8 1,239.2 1,280.9 1,324.9 1,368.0     5.8     8.9     8.3     3.4     3.4     3.3    19.6
    Undistributed profits with
     inventory valuation and capital
     consumption adjustments.........   376.5   397.3   459.6   337.2   430.7   468.7   412.6   526.4     5.5    15.7    27.7     8.8   -12.0    27.6    56.1
    Consumption of fixed capital.....   754.4   799.6   843.6   806.7   808.5   812.2   912.3   841.6     6.0     5.5      .2      .5    12.3    -7.7     4.3

  Less: Inventory valuation
   adjustment........................   -13.3   -39.6   -31.5   -44.4   -39.1   -18.9   -27.5   -40.4   .....   .....   .....   .....   .....   .....   .....

  Equals: Net cash flow.............. 1,144.1 1,236.6 1,334.7 1,188.3 1,278.3 1,299.8 1,352.4 1,408.5     8.1     7.9     7.6     1.7     4.0     4.1    18.5

Addenda:
  Profits before tax (without
   inventory valuation and capital
   consumption adjustments)..........   937.2 1,059.3 1,438.3 1,124.1 1,378.3 1,412.2 1,392.6 1,570.1    13.0    35.8    22.6     2.5    -1.4    12.7    39.7
  Profits after tax (without
   inventory valuation and capital
   consumption adjustments)..........   705.1   788.2 1,060.2   831.1 1,015.7 1,039.7 1,032.3 1,153.0    11.8    34.5    22.2     2.4     -.7    11.7    38.7
  Inventory valuation adjustment.....   -13.3   -39.6   -31.5   -44.4   -39.1   -18.9   -27.5   -40.4   .....   .....   .....   .....   .....   .....   .....
  Capital consumption adjustment.....   107.9   141.8   -54.9   139.8   -51.0   -45.8   -72.1   -50.7    31.4  -138.7  -136.5   -10.1    57.3   -29.6  -136.3
-------------------------------------------------------------------------------------------------------------------------------------------------------------

                                      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   IV 04    I 05   II 05  III 05   IV 05    2004    2005    I 05   II 05  III 05   IV 05
-------------------------------------------------------------------------------------------------------------------------------------------------------------
    Corporate profits with inventory
     valuation and capital consumption
     adjustments............................. 1,031.8 1,161.5 1,351.9 1,219.5 1,288.2 1,347.5 1,293.1 1,478.9   129.7   190.4    68.7    59.3   -54.4   185.8

Domestic industries..........................   855.8   976.6 1,146.3 1,040.9 1,094.8 1,150.3 1,069.9 1,270.3   120.8   169.7    53.9    55.5   -80.4   200.4
  Financial..................................   330.9   322.7   347.7   341.6   377.6   350.7   278.8   383.7    -8.2    25.0    36.0   -26.9   -71.9   104.9
  Nonfinancial...............................   524.9   653.9   798.6   699.3   717.1   799.6   791.1   886.6   129.0   144.7    17.8    82.5    -8.5    95.5

Rest of the world............................   176.0   184.9   205.6   178.6   193.5   197.2   223.1   208.6     8.9    20.7    14.9     3.7    25.9   -14.5
  Receipts from the rest of the world........   255.7   309.5   334.2   332.6   313.5   328.2   338.3   356.6    53.8    24.7   -19.1    14.7    10.1    18.3
  Less: Payments to the rest of the world....    79.7   124.6   128.5   154.0   120.1   131.0   115.1   148.0    44.9     3.9   -33.9    10.9   -15.9    32.9

    Corporate profits with inventory
     valuation adjustment....................   923.9 1,019.7 1,406.8 1,079.7 1,339.2 1,393.3 1,365.1 1,529.7    95.8   387.1   259.5    54.1   -28.2   164.6

Domestic industries..........................   747.9   834.8 1,201.2   901.1 1,145.7 1,196.1 1,142.0 1,321.1    86.9   366.4   244.6    50.4   -54.1   179.1
  Financial..................................   313.0   300.6   347.0   319.4   377.2   349.5   278.7   382.7   -12.4    46.4    57.8   -27.7   -70.8   104.0
    Federal Reserve banks....................    20.2    20.3    26.8    22.2    23.1    26.2    27.0    30.8      .1     6.5      .9     3.1      .8     3.8
    Other financial..........................   292.8   280.3   320.3   297.1   354.2   323.2   251.7   352.0   -12.5    40.0    57.1   -31.0   -71.5   100.3

  Nonfinancial...............................   434.9   534.2   854.2   581.7   768.5   846.6   863.3   938.3    99.3   320.0   186.8    78.1    16.7    75.0
    Utilities................................    11.4    12.1    27.4    14.1    23.7    26.4    19.7    39.6      .7    15.3     9.6     2.7    -6.7    19.9
    Manufacturing............................    80.7   118.9   207.9   154.7   170.2   204.7   218.6   238.3    38.2    89.0    15.5    34.5    13.9    19.7
      Durable goods..........................    -4.1    34.8    55.9    58.8    35.5    59.9    62.0    66.2    38.9    21.1   -23.3    24.4     2.1     4.2
        Fabricated metal products............     8.5    10.3    12.4    13.1     8.8    11.4    15.7    13.6     1.8     2.1    -4.3     2.6     4.3    -2.1
        Machinery............................     1.4     1.0     4.7    -2.6      .9     2.9     7.6     7.2     -.4     3.7     3.5     2.0     4.7     -.4
        Computer and electronic products.....   -16.1    -3.2     5.0     -.2      .5     4.2     6.7     8.5    12.9     8.2      .7     3.7     2.5     1.8
        Electrical equipment, appliances,
         and components......................     1.9      .3     4.5     6.8    -1.3     5.5     8.6     5.2    -1.6     4.2    -8.1     6.8     3.1    -3.4
        Motor vehicles, bodies and trailers,
         and parts...........................   -11.6    -3.4   -22.2     1.3   -20.8   -15.7   -25.3   -27.0     8.2   -18.8   -22.1     5.1    -9.6    -1.7
        Other durable goods..................    11.9    29.9    51.6    40.5    47.3    51.6    48.8    58.7    18.0    21.7     6.8     4.3    -2.8     9.9

      Nondurable goods.......................    84.8    84.0   152.0    95.9   134.7   144.8   156.6   172.1     -.8    68.0    38.8    10.1    11.8    15.5
        Food and beverage and tobacco
         products............................    23.5    24.0    39.8    20.5    39.6    37.7    40.8    41.1      .5    15.8    19.1    -1.9     3.1      .3
        Petroleum and coal products..........    23.6    31.0    70.2    49.2    62.8    66.3    70.8    80.7     7.4    39.2    13.6     3.5     4.5     9.9
        Chemical products....................    20.8    13.5    21.4     8.4    18.8    20.5    22.7    23.4    -7.3     7.9    10.4     1.7     2.2      .7
        Other nondurable goods...............    16.9    15.6    20.7    17.8    13.5    20.3    22.3    26.9    -1.3     5.1    -4.3     6.8     2.0     4.6

    Wholesale trade..........................    56.3    63.5    93.9    66.9    81.4    98.1    95.4   100.6     7.2    30.4    14.5    16.7    -2.7     5.2
    Retail trade.............................    87.7    90.0   115.2    87.7   104.6   109.1   116.9   130.4     2.3    25.2    16.9     4.5     7.8    13.5
    Transportation and warehousing...........     8.1     8.4    28.2     1.7    22.9    27.9    32.9    29.1      .3    19.8    21.2     5.0     5.0    -3.8
    Information..............................    -1.9    17.0    51.1    21.0    46.7    53.5    50.2    54.0    18.9    34.1    25.7     6.8    -3.3     3.8
    Other nonfinancial.......................   192.4   224.3   330.4   235.6   318.9   326.9   329.6   346.4    31.9   106.1    83.3     8.0     2.7    16.8

Rest of the world............................   176.0   184.9   205.6   178.6   193.5   197.2   223.1   208.6     8.9    20.7    14.9     3.7    25.9   -14.5
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  Note.--Estimates in this table are based on the 1997 North
American Industry Classification System (NAICS).

                             Table 13.--Gross Value Added of Nonfinancial Domestic Corporate Business
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2003       2004       2005r     IV 04       I 05      II 05     III 05      IV 05r
-----------------------------------------------------------------------------------------------------------------------------------
                                                                             Billions of dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business....................    5,595.7    5,995.4    6,474.0    6,198.9    6,282.8    6,414.0    6,528.0    6,671.4

Consumption of fixed capital...............      652.6      690.3      729.1      696.2      697.5      700.4      792.8      725.7

Net value added............................    4,943.1    5,305.1    5,744.9    5,502.8    5,585.3    5,713.6    5,735.2    5,945.7

  Compensation of employees................    3,703.2    3,906.8    4,182.0    4,042.0    4,105.4    4,140.5    4,214.7    4,267.4
    Wage and salary accruals...............    3,007.8    3,168.6    3,383.4    3,284.5    3,323.6    3,349.9    3,408.6    3,451.6
    Supplements to wages and salaries......      695.4      738.3      798.6      757.5      781.8      790.6      806.1      815.9
  Taxes on production and imports less
   subsidies...............................      486.5      519.1      549.7      529.9      537.7      547.9      553.7      559.8
  Net operating surplus....................      753.4      879.2    1,013.2      930.9      942.2    1,025.2      966.8    1,118.5
    Net interest and miscellaneous
     payments..............................      166.2      164.9      171.5      162.1      167.0      167.3      172.8      179.0
    Business current transfer payments.....       62.4       60.4       43.1       69.5       58.0       58.4        2.9       52.9
    Corporate profits with inventory
     valuation and capital consumption
     adjustments...........................      524.9      653.9      798.6      699.3      717.1      799.6      791.1      886.6
      Taxes on corporate income............      126.5      165.9      254.7      180.8      231.9      248.6      258.0      280.3
      Profits after tax with inventory
       valuation and capital consumption
       adjustments.........................      398.3      487.9      543.9      518.5      485.2      550.9      533.1      606.3
        Net dividends......................      295.5      361.2      252.5      465.0      306.7      297.6      181.7      224.0
        Undistributed profits with
         inventory valuation and capital
         consumption adjustments...........      102.8      126.7      291.4       53.5      178.5      253.4      351.4      382.3

Addenda:
  Profits before tax (without inventory
   valuation and capital consumption
   adjustments)............................      448.1      573.9      885.7      626.1      807.6      865.5      890.8      978.8
  Profits after tax (without inventory
   valuation and capital consumption
   adjustments)............................      321.6      407.9      630.9      445.3      575.6      616.9      632.8      698.5
  Inventory valuation adjustment...........      -13.3      -39.6      -31.5      -44.4      -39.1      -18.9      -27.5      -40.4
  Capital consumption adjustment...........       90.0      119.7      -55.6      117.6      -51.3      -47.0      -72.2      -51.7
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business\1\.................    5,418.2    5,714.1    6,085.3    5,895.9    5,943.3    6,046.0    6,121.9    6,230.2

Consumption of fixed capital\2\............      629.4      656.5      686.9      657.3      660.2      663.6      745.2      678.6
Net value added\3\.........................    4,788.8    5,057.6    5,398.4    5,238.6    5,283.1    5,382.4    5,376.6    5,551.5
                                           ----------------------------------------------------------------------------------------
                                                                                   Dollars
                                           ----------------------------------------------------------------------------------------
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      1.064      1.051      1.057      1.061      1.066      1.071

  Compensation of employees (unit labor
   cost)...................................       .683       .684       .687       .686       .691       .685       .688       .685

  Unit nonlabor cost.......................       .252       .251       .245       .247       .245       .244       .249       .243
    Consumption of fixed capital...........       .120       .121       .120       .118       .117       .116       .130       .116
    Taxes on production and imports less
     subsidies plus business current
     transfer payments.....................       .101       .101       .097       .102       .100       .100       .091       .098
    Net interest and miscellaneous payments       .031       .029       .028       .027       .028       .028       .028       .029

  Corporate profits with inventory valuation
   and capital consumption adjustments (unit
   profits from current production)........       .097       .114       .131       .119       .121       .132       .129       .142
    Taxes on corporate income..............       .023       .029       .042       .031       .039       .041       .042       .045
    Profits after tax with inventory
     valuation and capital consumption
     adjustments...........................       .074       .085       .089       .088       .082       .091       .087       .097
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the third
quarter of 2005.
  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   2005r  I 02  II 02 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 05r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................    2.7    4.2    3.5    2.7    2.2    2.4     .2    1.7    3.7    7.2    3.6    4.3    3.5    4.0    3.3    3.8    3.3    4.1    1.7

  Goods.............................    3.4    6.5    4.7    3.9    1.5    5.2   -5.2    4.3    2.3   16.8    2.9    7.2    4.7    6.6    3.9    4.4    5.0    5.3    2.3
  Services..........................    2.2    2.7    2.7    2.5    3.4    1.7    2.9     .7    3.7    1.3    3.8    3.3    1.2    3.0    3.2    3.2    1.5    3.6    1.1
  Structures........................    3.2    5.7    4.8    -.1   -2.7   -3.0    3.1    -.9    8.2   13.6    4.1     .6   13.1    1.2    2.2    5.2    8.4    3.3    2.6

  Motor vehicle output..............    3.8    4.6    3.4   15.5    5.7   11.6     .5     .3   -2.5   22.6   -3.6   14.4   -7.3    3.0    8.8    4.3    -.3   17.6  -17.2
  GDP excuding motor vehicle
   output...........................    2.7    4.2    3.5    2.3    2.1    2.0     .2    1.8    3.9    6.7    3.8    3.9    3.9    4.0    3.1    3.8    3.4    3.7    2.4

  Final sales of computers\1\.......   20.2   20.4   39.6   -7.6     .7   29.3   15.3    7.1   14.4   78.0   11.9   10.2   10.3   13.3   56.5   54.9   45.4   20.3   45.9
  GDP excluding final sales of
   computers........................    2.6    4.1    3.3    2.8    2.2    2.2     .1    1.7    3.6    6.8    3.5    4.2    3.4    3.9    3.0    3.5    3.0    4.0    1.3

  Farm gross value added\2\.........    8.4     .0   -8.0  -64.0  133.6   63.9   34.2  -22.3   27.0  -34.1  -13.1   89.8  -31.5  -11.3  -17.1    7.3  -31.1   20.9   36.7

  Nonfarm business gross value
   added\3\.........................    3.3    4.8    4.2    3.5    1.4    3.1     .1    2.0    4.7   10.4    2.8    4.2    4.6    4.6    3.9    4.3    4.4    4.7    1.5

Price indexes:
  GDP...............................    2.0    2.6    2.8    1.7    1.5    1.6    2.2    3.1    1.1    1.8    1.9    3.6    3.9    1.5    2.7    3.1    2.6    3.3    3.5
  GDP excluding food and energy.....    1.8    2.5    2.7    2.1    1.8    1.6    2.0    2.6     .9    1.6    1.7    3.3    3.4    2.0    2.6    2.9    2.4    2.8    3.4
  GDP excluding final sales of
   computers........................    2.2    2.7    3.0    1.9    1.7    1.7    2.4    3.2    1.2    2.0    1.9    3.7    3.9    1.6    2.9    3.3    2.8    3.5    3.7

  Gross domestic purchases..........    2.2    2.9    3.2    1.5    2.5    1.7    2.2    4.1     .4    2.0    1.7    4.2    4.1    2.0    3.2    2.9    3.3    4.2    3.7
  Gross domestic purchases excluding
   food and energy..................    1.8    2.4    2.5    1.8    1.7    1.6    1.8    2.5    1.0    1.7    1.8    3.4    3.2    2.0    2.4    3.0    2.1    2.5    3.2
  Gross domestic purchases excluding
   final sales of computers to
   domestic purchasers..............    2.4    3.0    3.4    1.7    2.6    1.9    2.4    4.3     .5    2.2    1.8    4.3    4.3    2.2    3.4    3.1    3.5    4.5    3.9

  Personal consumption expenditures
   (PCE)............................    1.9    2.6    2.8     .9    2.8    1.8    1.7    3.0     .6    2.0    1.3    3.9    3.8    1.5    3.1    2.3    3.3    3.7    2.9
  Personal consumption expenditures
   excluding food and energy........    1.3    2.0    2.0    1.3    1.8    1.9    1.2    1.1    1.0    1.5    1.4    2.7    2.5    1.5    2.3    2.4    1.7    1.4    2.4
  Market-based PCE\4\...............    1.9    2.3    2.7     .6    2.8    1.7    1.7    3.1     .5    1.9     .9    3.4    3.7    1.1    2.8    2.1    3.4    3.9    2.6
  Market-based PCE excluding food
   and energy\4\....................    1.2    1.5    1.7     .9    1.6    1.7    1.2     .8    1.0    1.4     .9    1.9    2.0    1.1    1.8    2.2    1.5    1.1    1.9
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised
  1. For some components of final sales of computers, includes
computer parts.
  2. Farm output less intermediate goods and services purchased.
  3. Consists of GDP less gross value added of farm, of
households and institutions, and of general government.
  4. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.
  See "Explanatory Note" at the end of the tables.



     Explanatory Note: NIPA Measures of Quantities and Prices


     Current-dollar GDP is a measure of the market value of goods, services, and structures produced in
the economy in a particular period.  Changes in current-dollar GDP can be decomposed into quantity and
price components.  Quantities, or "real" measures, and prices are expressed as index numbers with the
reference year -- at present, the year 2000 -- equal to 100. 

     Annual changes in quantities and prices are calculated using a Fisher formula that incorporates
weights from two adjacent years.  (Quarterly changes in quantities and prices are calculated using a
Fisher formula that incorporates weights from two adjacent quarters; quarterly indexes are adjusted for
consistency to the annual indexes before percent changes are calculated.)  For example, the 2003-04
annual percent change in real GDP uses prices for 2003 and 2004 as weights, and the 2003-04 annual
percent change in GDP prices uses quantities for 2003 and 2004 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.