Home > News > News Release Archive > 2007 > Gross Domestic Product and Corporate Profits News Release > Technical Note

Technical Note

Available for this release: Entire Note: (PDF - KB)

                                    Technical Note
                                Gross Domestic Product
                              Second Quarter of 2007 (Final)
                                   September 27, 2007

This technical note provides background information about the source data and 
estimating methods used to produce the estimates presented in the GDP news release. 
The complete set of estimates for the second quarter is available on BEA's Web site at 
www.bea.gov; a brief summary of "highlights" is also posted on the Web site.  In a few 
weeks, the estimates will be published in BEA's monthly journal, the Survey of Current 
Business, along with a more detailed analysis of the estimates ("GDP and the 
Economy").  


Sources of Revision to Components of Real GDP
     
Real GDP growth in the second quarter was 3.8 percent (annual rate), which was 0.2 
percentage point less than that in the preliminary estimate.  The downward revision to real 
GDP primarily reflected an upward revision to imports, which are a subtraction in the 
calculation of GDP:

    *    Imports of both goods and services were revised up, reflecting the incorporation
         of revised Census goods data for June and revised services data from BEA?s
         international transactions accounts for the first and second quarters.

The price index for gross domestic purchases increased 3.8 percent in the second 
quarter, the same as in the preliminary estimate.  


Corporate Profits

Profits from current production increased $94.7 billion, or 6.1 percent (quarterly rate), in 
the second quarter, which was $3.6 billion less than in the preliminary estimate.  The 
revision reflected revised source data, which include preliminary tabulations of Census 
quarterly financial reports, regulatory agency reports, and compilations of publicly 
available corporate financial statements.   

In the second quarter, real gross value added of nonfinancial corporate business 
increased, unit labor costs increased, unit nonlabor costs decreased, and profits per unit 
of real value added increased.


Brent R. Moulton  
Associate Director for National Economic Accounts
Bureau of Economic Analysis  
(202) 606-9606