Technical Note
Gross Domestic Product and Corporate Profits
Third Quarter of 2007 (Final)
December 20, 2007

*See the navigation bar at the right side of the technical note text for supplementary materials.


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


Sources of Revision to Components of Real GDP
     
Real GDP growth in the third quarter was 4.9 percent (annual rate), the same growth 
rate as in the preliminary estimate.  A small upward revision to consumer spending was 
offset by a small downward revision to inventory investment:

   *	The upward revision to consumer spending primarily reflected revised Census 
        Bureau retail sales data for September.
   *	The downward revision to inventory investment primarily reflected revised BEA 
        motor vehicle estimates for September and revised Census inventory data for 
        September.

The price index for gross domestic purchases increased 1.8 percent in the third quarter, 
which was 0.2 percentage point more than the preliminary estimate.  The revision 
primarily reflected an upward revision to the implicit price for banking services that was 
based on newly available Federal Reserve Board tabulations of Call Report data for the 
third quarter.   


Corporate Profits

Profits from current production decreased $20.5 billion, or 1.2 percent (quarterly rate), in 
the third quarter, which compares with a decrease of $19.3 billion in the preliminary 
estimate.  In the third quarter, real gross value added of nonfinancial corporate business 
increased, prices per unit of real value added decreased, unit labor costs increased, unit 
nonlabor costs decreased, and unit profits decreased.


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