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
                         Fourth Quarter of 2006 (Final)
                                March 29, 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 fourth 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 fourth quarter was 2.5 percent (annual rate), which was 0.3 
percentage point more than that in the preliminary estimate.  The upward revision to real 
GDP primarily reflected an upward revision to private inventory investment that was 
partly offset by a downward revision to equipment and software investment:

    *   The upward revision to inventory investment was mostly accounted for by retail
        motor vehicle inventories and reflected a revised BLS producer price index for
        light trucks for October.
    *   The largest contributor to the downward revision to equipment and software
        investment was a revision to software, which reflected newly available data from
        the Census quarterly services survey.

The price index for gross domestic purchases increased 0.2 percent in the fourth 
quarter, the same as in the preliminary estimate.  



Corporate Profits

Profits from current production decreased $4.9 billion, or 0.3 percent (quarterly rate), in 
the fourth quarter, compared with an increase of $61.5 billion, or 3.9 percent, in the third.  
In the fourth quarter, real gross value added of nonfinancial corporate business 
increased, unit labor and nonlabor costs increased, and profits per unit of real value 
added decreased.  Profits for 2006 were $1,615.7 billion, an increase of 21.4 percent 
from 2005. 


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