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 Real GDP

       The real GDP growth rate in the second quarter was revised from 1.9 percent to 3.3
percent (annual rate).

       Exports were revised up and imports (which are a subtraction in the calculation of
GDP) were revised down, reflecting newly available Census Bureau goods data
for June.

       Inventory investment was revised up, reflecting newly available Census Bureau
inventory data for June and revised data for May.

Corporate Profits

       Profits from current production decreased $37.8 billion, or 2.4 percent (quarterly rate), in
the second quarter, after decreasing $17.6 billion, or 1.1 percent, in the first.

Revisions to Wages and Salaries and Disposable Personal Income

       In addition to presenting preliminary estimates for the second quarter, today's news
release also presents revised estimates of first-quarter wages and salaries, personal
taxes, and contributions for government social insurance.  Wage and salary
disbursements are now estimated to have increased $52.5 billion in the first quarter, a
downward revision of $20.2 billion.  These estimates reflect newly available wage and
salary tabulations for the first quarter from the Bureau of Labor Statistics quarterly
census of employment and wages.  These data are more comprehensive than the
monthly employment and earnings data that were used for the earlier estimates--they
include the pay of supervisors and irregular pay, such as bonuses and gains from the
exercise of stock options.

       Real disposable personal income (DPI) is now estimated to have decreased 0.7 percent
(annual rate) in the first quarter and to have increased 11.4 percent in the second; the
second quarter increase reflects the rebate payments from the Economic Stimulus Act.
(By comparison, the estimates that were available last month showed a decrease of 0.1
percent in the first quarter and an increase of 11.3 percent in the second.)

Carol E. Moylan
Chief, National Income and Wealth Division
Bureau of Economic Analysis
(202) 606-9711

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