News Release
These data have been superseded. Please see our latest releases for current estimates and contact information.
Gross Domestic Product and Corporate Profits: Fourth Quarter 2004 "final" estimates
The tables from this news release are available in XLS format and the entire release is available in PDF format.
Also available: a brief summary of highlights.
Note:In the fourth quarter of 2004, the Microsoft Corporation paid a special dividend to its shareholders. The dividend payment affects the fourth-quarter estimate of personal income released on January 28, and also affected the estimates of corporate profits, national income, and government current receipts released on March 30. More information is available.
Effects of the Third-Quarter Hurricanes on Income Measures
Sign up for e-mail notifications.
Virginia H. Mannering: (202) 606-5304 (GDP) BEA 05-12
Greg Key: (202) 606-9727 (Profits)
Recorded message: (202) 606-5306
GROSS DOMESTIC PRODUCT: FOURTH QUARTER 2004 (FINAL)
CORPORATE PROFITS: FOURTH QUARTER 2004
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 3.8 percent in the fourth quarter of 2004,
according to final estimates released by the Bureau of Economic Analysis. In the third quarter, real
GDP increased 4.0 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 also 3.8 percent (see "Revisions" on page 3).
The major contributors to the increase in real GDP in the fourth quarter were personal
consumption expenditures (PCE), equipment and software, and private inventory investment. Imports,
which are a subtraction in the calculation of GDP, increased.
The small deceleration in real GDP growth in the fourth quarter primarily reflected an
acceleration in imports of goods and decelerations in PCE for durable goods and in exports of goods
that were partly offset by an upturn in private inventory investment.
Final sales of computers contributed 0.56 percentage point to the fourth-quarter change in real
GDP after contributing 0.18 percentage point to the third-quarter change. Motor vehicle output
contributed 0.86 percentage point to the fourth-quarter change in real GDP after contributing 0.34
percentage point to the third-quarter change.
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 are annualized. "Real" estimates are in
chained (2000) dollars. Price indexes are chain-type measures.
This news release is available on BEA's Web site at www.bea.gov/newsreleases/rels.htm.
The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 2.9 percent in the fourth quarter, 0.1 percentage point more than the preliminary estimate;
this index increased 1.9 percent in the third quarter. Excluding food and energy prices, the price index
for gross domestic purchases increased 2.0 percent in the fourth quarter, compared with an increase of
1.7 percent in the third.
Real personal consumption expenditures increased 4.2 percent in the fourth quarter, compared
with an increase of 5.1 percent in the third. Real nonresidential fixed investment increased 14.5
percent, compared with an increase of 13.0 percent. Nonresidential structures increased 2.1 percent, in
contrast to a decrease of 1.1 percent. Equipment and software increased 18.4 percent, compared with
an increase of 17.5 percent. Real residential fixed investment increased 3.4 percent, compared with an
increase of 1.6 percent.
Real exports of goods and services increased 3.2 percent in the fourth quarter, compared with an
increase of 6.0 percent in the third. Real imports of goods and services increased 11.4 percent,
compared with an increase of 4.6 percent.
Real federal government consumption expenditures and gross investment increased 1.2 percent
in the fourth quarter, compared with an increase of 4.8 percent in the third. National defense
decreased 0.6 percent, in contrast to an increase of 10.1 percent. Nondefense increased 5.3 percent, in
contrast to a decrease of 5.3 percent. Real state and local government consumption expenditures and
gross investment increased 0.6 percent, in contrast to a decrease of 1.7 percent.
The real change in private inventories added 0.46 percentage point to the fourth-quarter change
in real GDP after subtracting 0.97 percentage point from the third-quarter change. Private businesses
increased inventories $47.2 billion in the fourth quarter, following increases of $34.5 billion in the
third quarter and $61.1 billion in the second.
Real final sales of domestic product -- GDP less change in private inventories -- increased 3.4
percent in the fourth quarter, compared with an increase of 5.0 percent in the third.
Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 5.0 percent in the fourth quarter, compared with an increase of 3.9 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 3.5 percent in the fourth quarter, compared with an increase of
4.0 percent in the third. GNP includes, and GDP excludes, net receipts of income from the rest of the
world, which decreased $9.7 billion in the fourth quarter after increasing $1.6 billion in the third; in
the fourth quarter, receipts increased $41.4 billion, and payments increased $51.1 billion.
Current-dollar GDP
Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
6.2 percent, or $179.9 billion, in the fourth quarter to a level of $11,994.8 billion. In the third quarter,
current-dollar GDP increased 5.5 percent, or $157.4 billion.
Revisions
The final estimate of the fourth-quarter increase in real GDP is the same as the preliminary
estimate. Small upward revisions to exports and to personal consumption expenditures for durable
goods were offset by a downward revision to private inventory investment.
Advance Preliminary Final
(Percent change from preceding quarter)
Real GDP.............................. 3.1 3.8 3.8
Current-dollar GDP.................... 5.3 6.0 6.2
Gross domestic purchases price index... 2.7 2.8 2.9
Corporate Profits
Profits from current production (corporate profits with inventory valuation and capital
consumption adjustments) increased $150.8 billion in the fourth quarter. In the third quarter, profits
decreased $55.9 billion; the third-quarter decrease reflected a reduction of $79.7 billion from the
effects of Hurricanes Charley, Frances, Ivan, and Jeanne. Current-production cash flow (net cash flow
with inventory valuation and capital consumption adjustments) -- the internal funds available to
corporations for investment -- decreased $37.7 billion in the fourth quarter, compared with a decrease
of $1.6 billion in the third.
Taxes on corporate income increased $42.4 billion in the fourth quarter, in contrast to a
decrease of $17.9 billion in the third. Profits after tax with inventory valuation and capital
consumption adjustments increased $108.3 billion in the fourth quarter, in contrast to a decrease of
$38.0 billion in the third. Dividends increased $110.7 billion, compared with an increase of $10.8
billion; current-production undistributed profits decreased $2.4 billion, compared with a decrease of
$48.8 billion.
Domestic profits of financial corporations increased $84.1 billion in the fourth quarter, in
contrast to a decrease of $68.7 billion in the third.
Domestic profits of nonfinancial corporations increased $66.7 billion in the fourth quarter,
compared with an increase of $9.4 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 corporations
incurred.
The rest-of-the-world component of profits was unchanged in the fourth quarter, in contrast to
an increase of $3.4 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. Receipts and payments
increased by the same amount.
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 the inventory-accounting and depreciation-accounting practices used for federal
income tax returns. According to this measure, domestic profits of both financial and nonfinancial
corporations increased. For nonfinancial corporations, the largest increase was in manufacturing.
Profits also increased in utilities, in retail trade, and in "other" nonfinancial. Profits decreased in
information, in transportation and warehousing, and in wholesale trade.
Profits before tax increased $125.1 billion in the fourth quarter, in contrast to a decrease of
$55.5 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 $37.0 billion in the fourth quarter (from $223.0 billion to $260.0
billion), in contrast to a decrease of $10.3 billion in the third. The inventory valuation adjustment
decreased $11.3 billion (from -$37.8 billion to -$49.1 billion), in contrast to an increase of $10.0
billion.
Corporate profits in 2004
Profits from current production increased 15.7 percent in 2004, compared with an increase of
16.8 percent in 2003. Domestic profits increased 17.2 percent, compared with an increase of 17.8
percent. The rest-of-the-world component of profits increased 8.5 percent, compared with an increase
of 12.1 percent.
Profits tax liability increased 14.6 percent in 2004, compared with an increase of 27.8 percent in
2003. Profits after tax with inventory valuation and capital consumption adjustments increased 16.0
percent, compared with an increase of 13.8 percent. Dividends increased 12.3 percent, compared with
an increase of 1.4 percent; current-production undistributed profits increased 19.9 percent, compared
with an increase of 30.0 percent.
Profits before tax increased 12.7 percent in 2004, compared with an increase of 15.4 percent in
2003. In 2004, 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 lowered before-tax profits. Profits from current production were 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
(202) 606-5362 U.S. international transactions
* * *
Next release -- April 28, 2005, at 8:30 A.M. EDT for:
Gross Domestic Product: First Quarter 2005 (Advance)
Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
[Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2002 2003 2004r I 01 II 01 III 01 IV 01 I 02 II 02 III 02 IV 02 I 03 II 03 III 03 IV 03 I 04 II 04 III 04 IV 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP). 1.9 3.0 4.4 -.5 1.2 -1.4 1.6 3.4 2.4 2.6 .7 1.9 4.1 7.4 4.2 4.5 3.3 4.0 3.8
Personal consumption expenditures... 3.1 3.3 3.8 1.7 1.0 1.8 7.0 1.8 2.8 2.9 2.5 2.7 3.9 5.0 3.6 4.1 1.6 5.1 4.2
Durable goods..................... 6.5 7.4 6.7 6.7 -.3 3.1 37.4 -8.5 4.4 14.0 -2.4 -.1 20.6 16.5 3.9 2.2 -.3 17.2 3.9
Nondurable goods.................. 2.6 3.7 4.6 .5 -.1 2.4 4.9 3.8 .8 -.6 5.3 5.0 1.6 6.9 5.1 6.7 .1 4.7 5.9
Services.......................... 2.6 2.2 2.8 1.1 1.8 1.2 2.3 3.3 3.5 2.4 2.2 2.1 1.8 1.9 2.8 3.3 2.7 3.0 3.4
Gross private domestic investment... -2.4 4.4 13.2 -13.6 -7.6 -10.5 -22.7 16.8 .3 4.1 -.5 -.8 3.5 22.4 13.9 12.3 19.0 2.4 13.3
Fixed investment.................. -4.9 5.1 10.3 -2.6 -8.7 -4.5 -10.6 -4.3 -3.5 .2 -.8 2.4 10.9 18.0 10.5 4.5 13.9 8.8 10.5
Nonresidential.................. -8.9 3.3 10.6 -4.2 -13.6 -6.8 -13.3 -9.7 -9.6 -1.1 -3.2 -.1 11.8 15.7 11.0 4.2 12.5 13.0 14.5
Structures.................... -17.8 -5.6 1.4 -8.3 -4.0 6.0 -33.2 -18.5 -22.6 -16.0 -6.6 -13.0 14.5 -1.3 7.9 -7.6 6.9 -1.1 2.1
Equipment and software........ -5.5 6.4 13.6 -2.8 -16.9 -11.4 -4.2 -6.3 -4.5 4.6 -2.0 4.5 11.0 21.7 12.0 8.0 14.2 17.5 18.4
Residential..................... 4.8 8.8 9.7 2.2 5.6 1.8 -3.7 9.3 11.3 2.8 4.2 7.5 9.1 22.4 9.6 5.0 16.5 1.6 3.4
Change in private inventories..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Net exports of goods and services... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Exports........................... -2.3 1.9 8.6 -5.3 -12.7 -18.2 -10.8 4.7 11.0 3.1 -4.2 -1.5 -1.6 11.3 17.5 7.3 7.3 6.0 3.2
Goods........................... -4.1 2.2 8.8 -5.4 -17.1 -20.0 -8.8 -1.9 14.0 2.9 -10.2 4.0 -.8 10.1 16.1 9.1 6.0 9.5 1.9
Services........................ 1.8 1.4 8.0 -5.0 -.7 -13.7 -15.3 21.7 4.5 3.5 10.5 -12.7 -3.4 14.1 20.6 3.4 10.2 -1.8 6.2
Imports........................... 3.4 4.4 9.9 -3.7 -12.6 -10.3 -3.4 12.5 11.4 5.4 9.6 -2.0 2.5 2.8 17.1 10.6 12.6 4.6 11.4
Goods........................... 3.7 4.7 10.8 -3.4 -16.9 -8.6 -2.0 10.1 15.3 5.9 8.2 -1.8 5.1 .0 18.4 12.7 13.0 5.0 14.9
Services........................ 1.9 3.1 5.8 -5.0 12.8 -18.3 -10.4 24.7 -5.8 2.8 16.6 -2.6 -9.4 17.9 11.1 1.2 10.6 2.8 -5.2
Government consumption expenditures
and gross investment............... 4.4 2.8 1.9 5.3 7.9 -1.5 8.5 4.7 4.4 2.1 4.0 .2 7.2 .1 1.6 2.5 2.2 .7 .9
Federal........................... 7.5 6.6 4.7 8.1 9.1 .0 8.8 8.2 12.8 2.9 9.1 .3 22.1 -3.3 4.8 7.1 2.7 4.8 1.2
National defense................ 7.7 9.0 7.3 7.0 4.3 2.4 12.5 5.8 11.5 3.4 13.5 -2.7 38.4 -7.7 11.6 10.6 1.9 10.1 -.6
Nondefense...................... 7.1 2.4 -.5 10.1 18.0 -3.9 2.3 12.6 15.0 1.9 1.6 6.2 -3.9 5.8 -7.5 .2 4.4 -5.3 5.3
State and local................... 2.8 .7 .4 4.0 7.2 -2.3 8.4 2.9 .3 1.7 1.4 .1 -.4 2.2 -.1 .0 1.9 -1.7 .6
Addenda:
Final sales of domestic product... 1.4 3.1 4.0 1.6 1.0 -.4 3.8 .3 1.8 2.0 .7 2.4 5.2 6.8 3.7 3.3 2.5 5.0 3.4
Gross domestic purchases.......... 2.5 3.3 4.8 -.4 .7 -.8 2.2 4.4 2.8 2.9 2.4 1.7 4.4 6.4 4.7 5.0 4.2 3.9 5.0
Final sales to domestic
purchasers....................... 2.1 3.4 4.4 1.5 .5 .2 4.3 1.4 2.2 2.4 2.3 2.2 5.4 5.9 4.2 3.9 3.5 4.9 4.5
Gross national product (GNP)...... 1.7 3.3 4.3 -1.1 1.5 -2.5 3.9 1.4 2.1 3.0 1.4 1.7 4.4 7.6 5.5 3.9 1.9 4.0 3.5
Disposable personal income........ 3.1 2.3 3.5 1.3 -1.7 11.5 -5.6 10.8 2.7 -1.7 .2 1.8 4.3 8.2 1.4 2.4 2.8 2.9 8.3
Current-dollar measures:
GDP............................. 3.5 4.9 6.6 2.8 4.4 .2 3.6 4.5 4.2 3.9 2.7 4.9 5.3 8.8 5.7 7.4 6.6 5.5 6.2
Final sales of domestic product. 3.1 5.1 6.2 4.9 4.2 1.2 5.5 1.7 3.3 3.7 2.7 5.3 6.3 8.4 5.4 6.1 5.8 6.5 5.7
Gross domestic purchases........ 4.0 5.4 7.3 2.2 3.0 .2 3.1 5.3 5.6 4.4 4.3 5.7 4.8 8.1 5.9 8.6 7.9 5.9 8.1
Final sales to domestic
purchasers..................... 3.6 5.5 6.9 4.3 2.8 1.2 4.9 2.6 4.7 4.2 4.3 6.0 5.8 7.7 5.7 7.4 7.1 6.9 7.6
GNP............................. 3.4 5.2 6.5 2.1 4.6 -.8 6.0 2.4 3.9 4.3 3.4 4.6 5.6 9.0 7.0 6.8 5.2 5.6 5.9
Disposable personal income...... 4.6 4.2 5.8 4.6 .8 12.1 -5.0 11.8 5.7 .2 1.5 5.1 5.0 9.9 2.6 5.8 6.0 4.2 11.2
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2002 2003 2004r I 01 II 01 III 01 IV 01 I 02 II 02 III 02 IV 02 I 03 II 03 III 03 IV 03 I 04 II 04 III 04 IV 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:
Gross domestic product.......... 1.9 3.0 4.4 -.5 1.2 -1.4 1.6 3.4 2.4 2.6 .7 1.9 4.1 7.4 4.2 4.5 3.3 4.0 3.8
Percentage points at annual rates:
Personal consumption expenditures. 2.14 2.29 2.65 1.07 .67 1.20 4.71 1.32 1.98 2.02 1.74 1.84 2.72 3.58 2.50 2.90 1.10 3.57 2.92
Durable goods................... .56 .63 .57 .55 -.03 .26 2.81 -.79 .37 1.16 -.21 -.01 1.64 1.38 .33 .19 -.02 1.37 .33
Motor vehicles and parts...... .22 .22 .12 .36 -.17 .16 2.24 -1.34 .13 1.09 -.50 -.22 .86 .53 -.07 -.23 -.24 .98 -.02
Furniture and household
equipment.................... .26 .27 .34 .23 .16 .15 .39 .41 .20 .04 .20 .07 .51 .62 .28 .32 .22 .33 .21
Other......................... .08 .15 .11 -.03 -.03 -.06 .18 .14 .04 .03 .08 .14 .27 .23 .12 .10 .00 .06 .13
Nondurable goods................ .51 .73 .91 .09 -.03 .47 .95 .76 .15 -.12 1.03 .97 .31 1.38 1.01 1.33 .03 .94 1.19
Food.......................... .18 .37 .47 .24 .05 .09 .18 .26 .29 -.02 .31 .62 .26 .57 .25 .77 .22 .42 .74
Clothing and shoes............ .12 .12 .19 -.06 .05 .04 .27 .25 -.01 -.12 .30 -.02 .23 .27 .11 .43 -.15 .16 .27
Gasoline, fuel oil, and other
energy goods................. .02 .01 -.01 .05 -.33 .11 .24 .00 -.14 -.01 .21 .01 -.29 .10 .33 -.04 -.29 .05 -.02
Other......................... .17 .23 .26 -.14 .21 .23 .27 .24 .01 .03 .21 .37 .12 .43 .32 .17 .25 .30 .20
Services........................ 1.08 .93 1.17 .43 .73 .47 .95 1.36 1.46 .98 .93 .87 .77 .83 1.15 1.39 1.10 1.26 1.41
Housing....................... .29 .15 .19 .31 .28 .21 .26 .42 .33 .19 .13 .12 .11 .16 .09 .23 .21 .25 .24
Household operation........... .03 .06 .10 -.25 -.35 .03 -.15 .09 .24 .01 .16 .01 -.11 .08 .29 .13 -.03 .05 .21
Electricity and gas......... .04 .03 .03 -.24 -.44 .00 -.07 .11 .19 .04 .19 -.04 -.19 .01 .25 .05 -.13 -.01 .18
Other household operation... -.01 .04 .07 -.02 .09 .02 -.08 -.02 .05 -.03 -.03 .05 .08 .07 .04 .07 .09 .06 .02
Transportation................ -.08 -.02 .03 .05 -.06 -.22 -.17 .01 -.04 -.10 -.01 .05 -.07 -.02 -.01 .05 .08 .04 .11
Medical care.................. .66 .46 .44 .45 .49 .70 .67 .74 .63 .59 .55 .39 .40 .40 .36 .38 .52 .59 .50
Recreation.................... .07 .09 .09 .15 -.03 .02 .07 .13 .05 .04 .11 .08 .13 .07 .11 .17 .01 .08 -.04
Other......................... .11 .20 .32 -.28 .39 -.25 .28 -.03 .24 .25 -.02 .23 .31 .15 .31 .43 .32 .24 .39
Gross private domestic investment. -.37 .66 2.00 -2.44 -1.28 -1.76 -3.95 2.34 .05 .61 -.06 -.10 .54 3.16 2.04 1.86 2.85 .40 2.11
Fixed investment................ -.80 .76 1.56 -.43 -1.51 -.75 -1.81 -.71 -.55 .02 -.13 .35 1.55 2.59 1.57 .69 2.07 1.37 1.65
Nonresidential................ -1.02 .33 1.05 -.52 -1.76 -.83 -1.63 -1.13 -1.06 -.12 -.33 -.01 1.10 1.50 1.07 .42 1.21 1.27 1.46
Structures.................. -.57 -.15 .03 -.29 -.14 .19 -1.27 -.59 -.70 -.45 -.17 -.33 .32 -.03 .18 -.19 .16 -.03 .05
Equipment and software...... -.45 .48 1.01 -.24 -1.62 -1.02 -.35 -.53 -.36 .33 -.16 .32 .78 1.53 .89 .61 1.05 1.30 1.41
Information processing
equipment and software... -.18 .45 .62 -.08 -.93 -.53 -.21 -.29 .04 .38 -.15 .59 .51 1.04 .61 .62 .55 .30 .68
Computers and peripheral
equipment.............. .09 .24 .22 .16 -.22 -.26 .19 .18 .03 .25 .08 .25 .30 .39 .25 .06 .22 .18 .41
Software................ -.10 .07 .18 .01 -.30 -.07 -.19 -.14 -.03 .11 -.16 .12 .07 .28 .14 .24 .13 .10 .30
Other................... -.16 .14 .22 -.25 -.42 -.20 -.21 -.33 .04 .02 -.08 .23 .14 .36 .22 .33 .20 .02 -.03
Industrial equipment...... -.08 .00 .07 .01 -.48 -.27 -.21 .24 -.21 .02 -.05 .09 -.02 .04 -.06 .08 .03 .31 .10
Transportation equipment.. -.17 -.04 .15 -.22 -.03 -.27 .26 -.39 -.38 -.09 .00 -.31 .25 .14 .14 -.20 .28 .41 .46
Other equipment........... -.02 .06 .19 .05 -.19 .05 -.19 -.10 .18 .02 .04 -.06 .03 .31 .20 .10 .20 .28 .16
Residential................... .22 .43 .51 .10 .25 .08 -.18 .42 .51 .13 .20 .36 .44 1.09 .50 .27 .86 .09 .19
Change in private inventories... .42 -.10 .44 -2.01 .23 -1.02 -2.14 3.05 .60 .59 .07 -.45 -1.01 .57 .47 1.17 .78 -.97 .46
Farm.......................... -.01 .02 .04 .00 -.28 .09 -.23 .37 -.47 .24 .02 .06 -.07 .06 .19 .06 -.10 .07 -.08
Nonfarm....................... .44 -.12 .41 -2.01 .51 -1.11 -1.91 2.69 1.07 .36 .05 -.51 -.94 .52 .29 1.10 .88 -1.04 .54
Net exports of goods and services. -.70 -.43 -.59 -.04 .49 -.56 -.66 -1.10 -.46 -.43 -1.69 .14 -.50 .64 -.66 -.76 -1.06 -.10 -1.35
Exports......................... -.24 .18 .82 -.59 -1.45 -2.04 -1.11 .43 .99 .29 -.42 -.15 -.15 1.02 1.55 .70 .70 .59 .32
Goods......................... -.29 .14 .59 -.43 -1.43 -1.60 -.63 -.13 .87 .19 -.72 .25 -.06 .64 1.00 .60 .41 .64 .14
Services...................... .05 .04 .23 -.16 -.02 -.44 -.48 .56 .13 .10 .30 -.40 -.10 .39 .56 .10 .30 -.06 .18
Imports......................... -.46 -.61 -1.40 .56 1.94 1.48 .45 -1.53 -1.45 -.72 -1.27 .29 -.34 -.39 -2.22 -1.46 -1.77 -.69 -1.67
Goods......................... -.42 -.54 -1.27 .43 2.23 1.02 .21 -1.04 -1.59 -.65 -.91 .22 -.58 .00 -1.96 -1.43 -1.52 -.62 -1.80
Services...................... -.04 -.07 -.14 .12 -.28 .47 .25 -.49 .14 -.06 -.36 .06 .24 -.39 -.26 -.03 -.25 -.07 .13
Government consumption expenditures
and gross investment............. .79 .52 .37 .92 1.35 -.28 1.48 .85 .81 .40 .75 .05 1.35 .03 .31 .48 .41 .13 .16
Federal......................... .46 .43 .32 .46 .52 .00 .51 .49 .78 .19 .58 .04 1.40 -.23 .33 .48 .18 .33 .09
National defense.............. .30 .38 .33 .25 .16 .09 .46 .23 .45 .14 .54 -.11 1.49 -.36 .50 .47 .09 .45 -.03
Consumption expenditures.... .25 .33 .25 .26 .06 .03 .45 .22 .29 .04 .63 -.16 1.39 -.40 .42 .29 .16 .38 -.20
Gross investment............ .06 .05 .08 -.01 .10 .06 .02 .00 .16 .11 -.09 .05 .10 .03 .09 .19 -.08 .07 .17
Nondefense.................... .16 .06 -.01 .20 .36 -.09 .05 .27 .33 .05 .04 .15 -.09 .13 -.18 .00 .10 -.12 .11
Consumption expenditures..... .14 .05 -.03 .15 .26 .01 .04 .19 .23 .12 .07 .14 -.23 .23 -.18 -.01 -.01 -.05 .08
Gross investment............. .02 .01 .01 .05 .10 -.10 .01 .07 .10 -.07 -.03 .00 .13 -.10 .01 .01 .11 -.07 .03
State and local................. .33 .09 .05 .46 .83 -.28 .97 .36 .03 .21 .17 .02 -.05 .26 -.02 .00 .23 -.20 .07
Consumption expenditures.... .21 .07 .05 .24 .24 .39 .38 .10 .16 .11 .14 .02 .04 .01 .08 .02 .00 .12 .11
Gross investment............ .12 .02 .00 .22 .59 -.67 .59 .26 -.13 .09 .02 .00 -.09 .25 -.10 -.02 .23 -.32 -.03
Addenda:
Goods........................... .41 1.41 2.38 -1.57 -.41 -1.89 .88 1.38 .31 1.54 -1.05 1.39 1.32 5.45 1.90 2.65 .82 2.67 1.99
Services........................ 1.69 1.35 1.54 1.04 .98 .93 1.58 1.94 2.39 1.29 1.71 .54 2.11 .67 1.77 1.76 1.30 1.59 1.71
Structures...................... -.24 .29 .52 .03 .66 -.44 -.87 .09 -.32 -.23 .08 .00 .67 1.29 .52 .07 1.19 -.25 .14
Motor vehicle output............ .39 .19 .20 -.69 1.03 -.20 .69 .25 .35 .62 .22 -.46 .11 .84 .11 .30 -.58 .34 .86
Final sales of computers........ .08 .31 .20 .42 -.13 -.21 .19 -.02 .10 .31 .23 .25 .28 .64 .26 .00 .00 .18 .56
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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
-------------------------------------------- -------------------------------------------- -------------------------
2004r IV 03 I 04 II 04 III 04 IV 04r 2004r IV 03 I 04 II 04 III 04 IV 04r 2004r III 04 IV 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product....... 11,735.0 11,270.9 11,472.6 11,657.5 11,814.9 11,994.8 10,841.9 10,580.7 10,697.5 10,784.7 10,891.0 10,994.3 460.6 106.3 103.3
Personal consumption expenditures. 8,229.9 7,914.9 8,060.2 8,153.8 8,282.5 8,423.3 7,632.5 7,466.8 7,543.0 7,572.4 7,667.8 7,747.0 276.9 95.4 79.2
Durable goods................... 993.9 971.1 976.3 975.5 1,007.0 1,017.0 1,099.3 1,069.7 1,075.5 1,074.7 1,118.3 1,129.0 68.7 43.6 10.7
Motor vehicles and parts...... 447.8 444.1 438.4 432.5 458.4 461.8 465.9 463.5 456.7 449.6 478.9 478.3 13.8 29.3 -.6
Furniture and household
equipment.................... 351.3 338.0 345.0 348.6 353.8 357.8 439.4 414.6 425.6 433.3 445.4 453.3 45.9 12.1 7.9
Other......................... 194.9 189.0 193.0 194.4 194.7 197.4 198.7 194.0 196.9 196.8 198.5 202.5 12.2 1.7 4.0
Nondurable goods................ 2,377.0 2,250.1 2,316.6 2,354.6 2,387.2 2,449.7 2,208.5 2,152.0 2,187.3 2,188.0 2,213.2 2,245.3 96.1 25.2 32.1
Food.......................... 1,150.3 1,091.8 1,120.3 1,137.5 1,157.0 1,186.3 1,043.3 1,008.6 1,028.4 1,034.3 1,045.4 1,065.0 48.2 11.1 19.6
Clothing and shoes............ 326.5 314.4 325.0 322.9 325.2 332.9 352.4 338.2 351.2 346.5 351.6 360.2 22.2 5.1 8.6
Gasoline, fuel oil, and other
energy goods................. 244.9 210.7 229.7 243.2 245.4 261.4 197.3 203.3 202.1 195.0 196.3 195.8 .0 1.3 -.5
Other......................... 655.3 633.1 641.5 651.0 659.6 669.0 617.1 602.1 606.6 613.4 621.4 626.8 27.5 8.0 5.4
Services........................ 4,859.0 4,693.6 4,767.3 4,823.8 4,888.2 4,956.6 4,338.3 4,256.7 4,291.7 4,320.0 4,352.4 4,389.2 118.0 32.4 36.8
Housing....................... 1,239.0 1,202.8 1,215.4 1,232.7 1,247.3 1,260.5 1,094.9 1,080.3 1,086.0 1,091.5 1,097.9 1,104.1 18.8 6.4 6.2
Household operation........... 452.0 438.1 445.6 447.6 453.5 461.2 410.6 406.0 409.3 408.4 409.7 415.1 10.4 1.3 5.4
Electricity and gas......... 177.9 171.2 175.7 174.3 177.4 184.3 150.5 150.6 151.9 148.8 148.5 153.0 3.3 -.3 4.5
Other household operation... 274.1 266.8 270.0 273.3 276.1 277.0 260.0 255.2 257.1 259.7 261.4 262.0 7.0 1.7 .6
Transportation................ 301.7 296.5 297.8 300.5 302.6 305.9 280.9 276.7 278.1 280.1 281.3 284.1 3.2 1.2 2.8
Medical care.................. 1,391.7 1,334.0 1,356.8 1,379.1 1,404.4 1,426.7 1,228.5 1,198.3 1,207.9 1,221.0 1,236.1 1,249.1 44.2 15.1 13.0
Recreation.................... 335.1 323.4 330.8 333.0 337.4 339.1 299.3 294.1 298.3 298.5 300.6 299.6 9.0 2.1 -1.0
Other......................... 1,139.5 1,098.8 1,120.9 1,130.9 1,143.1 1,163.2 1,023.1 1,000.3 1,011.2 1,019.4 1,025.7 1,035.9 32.4 6.3 10.2
Gross private domestic investment. 1,927.3 1,758.8 1,819.7 1,920.7 1,947.0 2,021.9 1,843.5 1,714.1 1,764.5 1,842.9 1,853.9 1,912.6 214.7 11.0 58.7
Fixed investment................ 1,884.0 1,755.2 1,783.5 1,861.7 1,915.4 1,975.3 1,794.4 1,702.7 1,721.4 1,778.3 1,816.1 1,861.9 167.1 37.8 45.8
Nonresidential................ 1,220.5 1,146.3 1,158.8 1,198.5 1,238.5 1,286.3 1,228.6 1,161.0 1,173.0 1,207.9 1,245.3 1,288.3 117.8 37.4 43.0
Structures.................. 278.2 268.2 266.0 275.5 281.2 290.0 240.7 242.4 237.7 241.7 241.0 242.3 3.3 -.7 1.3
Equipment and software...... 942.4 878.1 892.8 923.1 957.3 996.3 998.6 925.6 943.7 975.5 1,015.6 1,059.5 119.4 40.1 43.9
Information processing
equipment and software... 484.2 454.7 468.5 480.9 486.3 500.9 571.9 526.6 547.0 565.4 575.6 599.5 79.5 10.2 23.9
Computers and peripheral
equipment.............. 111.0 104.5 104.4 108.8 111.1 119.8 ..... ..... ..... ..... ..... ..... ..... ..... .....
Software................ 182.4 170.5 176.8 180.0 182.9 190.0 192.4 178.5 185.6 189.5 192.7 201.9 21.2 3.2 9.2
Other................... 190.7 179.7 187.4 192.2 192.2 191.1 204.8 190.4 200.2 206.2 206.8 205.9 25.4 .6 -.9
Industrial equipment...... 150.7 139.5 143.1 145.0 155.2 159.6 144.6 136.8 139.0 139.7 148.5 151.3 7.0 8.8 2.8
Transportation equipment.. 149.6 140.0 134.5 143.2 153.0 167.5 136.8 127.8 122.7 130.0 141.0 153.5 15.2 11.0 12.5
Other equipment........... 157.9 144.0 146.6 153.9 162.7 168.3 151.1 139.3 142.1 147.5 155.2 159.7 19.9 7.7 4.5
Residential................... 663.4 609.0 624.6 663.2 677.0 688.9 560.7 535.9 542.5 563.6 565.9 570.6 49.5 2.3 4.7
Change in private inventories... 43.4 3.5 36.2 59.0 31.6 46.7 45.7 8.6 40.0 61.1 34.5 47.2 46.5 -26.6 12.7
Farm.......................... -1.1 -.9 1.0 -2.4 -.2 -2.6 3.4 3.5 5.1 3.0 3.8 1.7 3.1 .8 -2.1
Nonfarm....................... 44.4 4.5 35.2 61.4 31.8 49.3 42.4 4.6 34.5 58.8 30.4 45.9 43.5 -28.4 15.5
Net exports of goods and services. -606.2 -502.8 -546.8 -591.3 -611.8 -674.8 -583.7 -528.3 -550.1 -580.3 -583.2 -621.1 -65.2 -2.9 -37.9
Exports......................... 1,175.5 1,099.2 1,134.3 1,167.6 1,189.5 1,210.4 1,120.3 1,076.2 1,095.4 1,114.8 1,131.1 1,140.0 88.5 16.3 8.9
Goods......................... 820.3 761.3 790.3 812.2 833.4 845.5 785.5 750.6 767.2 778.4 796.3 800.1 63.8 17.9 3.8
Services...................... 355.1 337.9 344.1 355.4 356.1 365.0 334.6 325.4 328.1 336.2 334.6 339.7 24.7 -1.6 5.1
Imports......................... 1,781.6 1,602.0 1,681.2 1,758.9 1,801.2 1,885.2 1,704.0 1,604.5 1,645.5 1,695.1 1,714.3 1,761.2 153.7 19.2 46.9
Goods......................... 1,490.8 1,326.4 1,399.2 1,470.1 1,506.9 1,587.2 1,448.2 1,353.2 1,394.1 1,437.4 1,454.9 1,506.3 140.9 17.5 51.4
Services...................... 290.8 275.6 282.0 288.8 294.4 298.1 257.3 251.7 252.4 258.9 260.7 257.3 14.0 1.8 -3.4
Government consumption expenditures
and gross investment............. 2,183.9 2,100.0 2,139.5 2,174.3 2,197.2 2,224.5 1,946.5 1,923.7 1,935.8 1,946.5 1,949.9 1,954.0 37.1 3.4 4.1
Federal......................... 809.9 767.5 793.3 804.4 817.4 824.6 721.7 701.2 713.3 718.1 726.6 728.8 32.1 8.5 2.2
National defense.............. 547.9 513.6 534.1 541.2 557.0 559.4 484.9 465.7 477.6 479.9 491.5 490.7 33.1 11.6 -.8
Consumption expenditures.... 477.5 450.2 465.2 473.6 487.1 484.0 415.0 401.4 408.5 412.5 422.1 417.0 24.7 9.6 -5.1
Gross investment............ 70.4 63.4 69.0 67.6 69.8 75.3 70.6 64.6 69.9 67.7 69.8 74.9 9.0 2.1 5.1
Nondefense.................... 262.0 253.9 259.1 263.2 260.4 265.2 236.4 235.2 235.4 237.9 234.7 237.7 -1.2 -3.2 3.0
Consumption expenditures.... 227.0 221.1 225.9 226.6 225.9 229.5 201.4 202.0 201.8 201.5 200.2 202.3 -2.6 -1.3 2.1
Gross investment............ 35.0 32.8 33.2 36.5 34.5 35.7 35.2 33.2 33.6 36.8 34.6 35.6 1.7 -2.2 1.0
State and local................. 1,373.9 1,332.6 1,346.3 1,369.9 1,379.8 1,399.9 1,224.8 1,222.5 1,222.4 1,228.3 1,223.2 1,225.1 5.0 -5.1 1.9
Consumption expenditures.... 1,099.7 1,066.3 1,079.8 1,091.8 1,105.5 1,121.6 973.7 970.9 971.5 971.5 974.6 977.3 4.7 3.1 2.7
Gross investment............ 274.3 266.2 266.4 278.0 274.3 278.3 251.1 251.6 251.0 257.1 248.6 247.8 .2 -8.5 -.8
Residual.......................... ..... ..... ..... ..... ..... ..... -42.2 -26.7 -31.3 -35.6 -44.5 -57.1 ..... ..... .....
Addenda:
Final sales of domestic product. 11,691.6 11,267.4 11,436.4 11,598.5 11,783.3 11,948.2 10,794.6 10,569.6 10,655.8 10,722.3 10,854.7 10,945.5 414.7 132.4 90.8
Gross domestic purchases........ 12,341.1 11,773.7 12,019.4 12,248.8 12,426.6 12,669.7 11,418.8 11,104.3 11,241.9 11,358.1 11,467.4 11,607.6 523.1 109.3 140.2
Final sales to domestic
purchasers..................... 12,297.8 11,770.1 11,983.2 12,189.8 12,395.1 12,623.0 11,371.3 11,093.2 11,200.1 11,295.5 11,430.9 11,558.6 477.1 135.4 127.7
Gross domestic product.......... 11,735.0 11,270.9 11,472.6 11,657.5 11,814.9 11,994.8 10,841.9 10,580.7 10,697.5 10,784.7 10,891.0 10,994.3 460.6 106.3 103.3
Plus: Income receipts from
the rest of the world.......... 405.8 371.8 373.8 388.0 406.8 454.7 375.5 350.7 349.6 359.8 375.5 416.9 63.6 15.7 41.4
Less: Income payments to
the rest of the world.......... 361.9 284.6 300.3 351.9 368.6 426.7 334.3 268.0 280.3 325.8 339.9 391.0 75.1 14.1 51.1
Equals: Gross national product.. 11,778.9 11,358.1 11,546.1 11,693.6 11,853.0 12,022.8 10,883.0 10,663.3 10,766.7 10,818.7 10,926.5 11,020.1 449.1 107.8 93.6
Net domestic product............ 10,327.6 9,896.7 10,117.6 10,282.3 10,316.9 10,593.6 9,452.8 9,228.4 9,344.1 9,424.1 9,426.4 9,616.7 407.0 2.3 190.3
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2002 2003 2004r I 01 II 01 III 01 IV 01 I 02 II 02 III 02 IV 02 I 03 II 03 III 03 IV 03 I 04 II 04 III 04 IV 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP). 1.7 1.8 2.2 3.3 3.1 1.6 1.7 1.4 1.5 1.7 2.0 2.7 1.1 1.4 1.6 2.8 3.2 1.4 2.3
Personal consumption expenditures... 1.4 1.9 2.2 3.3 2.6 .6 .6 .9 2.9 2.0 1.4 3.2 .7 1.6 1.2 3.3 3.1 1.3 2.7
Durable goods..................... -2.7 -3.4 -2.0 -1.4 -3.1 -2.8 -1.6 -3.8 -2.5 -2.1 -2.8 -3.7 -3.8 -4.4 -4.3 .0 -.1 -3.1 .1
Nondurable goods.................. .6 2.0 3.3 1.4 3.5 -.9 -4.0 .0 5.4 1.3 1.2 5.1 -2.2 3.5 .5 5.3 6.6 .9 4.7
Services.......................... 2.7 3.0 2.5 5.3 3.4 2.0 3.3 2.3 2.8 3.2 2.4 3.8 3.1 2.0 2.7 3.0 2.1 2.3 2.2
Gross private domestic investment... .2 1.1 2.5 .0 1.5 2.1 .2 -1.0 -.1 -.5 2.6 1.4 -.1 1.2 2.7 2.1 4.4 2.9 2.4
Fixed investment.................. .2 1.2 2.5 -.3 1.8 2.2 .1 -1.1 -.1 -.4 2.7 1.9 -.3 1.2 2.8 2.0 4.3 3.0 2.4
Nonresidential.................. -.8 -.4 .8 -2.3 .6 .3 -1.0 -1.3 -1.1 -1.3 .6 -.5 -1.3 .3 1.2 .3 1.7 .9 1.6
Structures.................... 2.4 2.1 4.9 6.0 6.5 6.6 2.1 .0 2.1 1.6 3.0 3.9 .0 1.3 1.4 4.8 7.6 9.8 10.9
Equipment and software........ -1.9 -1.2 -.4 -5.1 -1.5 -2.0 -2.2 -1.7 -2.2 -2.2 -.1 -1.9 -1.7 .0 1.2 -1.1 .1 -1.6 -.9
Residential..................... 2.5 4.4 5.7 5.5 5.0 6.9 2.8 -.8 2.1 1.6 7.1 6.8 1.7 3.1 5.8 5.4 9.1 6.8 3.8
Change in private inventories..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Net exports of goods and services... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Exports........................... -.4 2.1 3.5 .1 -1.3 -2.0 -3.5 -1.2 3.0 3.0 .4 4.1 1.0 .8 3.2 5.7 4.6 1.6 3.9
Goods........................... -.7 2.0 3.8 -.1 -1.6 -2.6 -3.8 -1.4 2.2 3.3 .5 3.5 1.6 -.6 4.2 6.4 5.3 1.2 3.9
Services........................ .4 2.4 2.8 .6 -.7 -.6 -2.8 -.6 4.8 2.4 .3 5.4 -.6 4.0 .9 4.0 3.2 2.7 3.9
Imports........................... -1.2 3.4 4.9 -3.0 -5.9 -5.3 -10.0 -1.9 10.5 3.4 .5 11.3 -4.3 2.6 .9 9.6 6.4 5.1 7.7
Goods........................... -1.8 2.9 4.9 -3.8 -6.6 -6.5 -11.3 -2.0 10.8 2.6 .4 12.0 -6.7 2.4 .4 9.9 7.8 5.2 7.1
Services........................ 1.7 5.9 4.9 1.5 -2.2 1.2 -3.3 -1.2 8.8 7.7 .9 7.9 8.4 3.6 3.5 8.3 -.5 5.0 10.9
Government consumption expenditures
and gross investment............... 2.7 3.2 3.2 3.1 1.8 1.6 1.1 4.2 3.1 2.7 3.3 7.4 -.5 2.2 1.0 5.1 4.3 3.6 4.2
Federal........................... 3.3 3.6 2.9 1.9 1.1 2.2 1.8 7.4 1.4 1.8 5.1 8.5 .3 1.1 1.0 6.6 3.0 1.7 2.3
National defense................ 3.4 4.2 2.8 3.5 .7 2.5 .8 7.1 1.6 2.9 7.7 8.6 -.3 1.1 1.3 5.7 3.5 1.9 2.4
Nondefense...................... 3.1 2.6 3.0 -1.0 1.8 1.6 3.4 8.0 1.1 -.2 .5 8.2 1.4 1.0 .3 8.3 1.9 1.3 2.2
State and local................... 2.4 3.0 3.4 3.8 2.1 1.3 .8 2.5 4.0 3.2 2.4 6.8 -1.0 2.9 1.0 4.2 5.2 4.7 5.3
Addenda:
Final sales of domestic product... 1.7 1.8 2.2 3.3 3.2 1.6 1.7 1.3 1.5 1.7 2.0 2.8 1.1 1.4 1.6 2.7 3.2 1.4 2.3
Gross domestic purchases.......... 1.5 2.0 2.4 2.7 2.3 1.0 .6 1.2 2.5 1.8 1.9 3.7 .4 1.7 1.4 3.4 3.5 1.9 2.9
Final sales to domestic
purchasers....................... 1.5 2.0 2.4 2.7 2.3 1.0 .6 1.1 2.5 1.8 1.9 3.8 .3 1.7 1.4 3.4 3.5 1.9 2.9
Gross national product (GNP)...... 1.6 1.8 2.2 3.3 3.1 1.6 1.7 1.3 1.5 1.7 2.0 2.7 1.1 1.5 1.6 2.8 3.2 1.4 2.3
Implicit price deflators:
GDP............................. 1.7 1.8 2.1 3.3 3.1 1.7 2.0 1.0 1.8 1.3 2.0 2.9 1.1 1.3 1.4 2.7 3.2 1.4 2.3
Gross domestic purchases........ 1.5 2.0 2.4 2.7 2.2 1.1 .9 .8 2.8 1.4 1.9 3.9 .4 1.6 1.2 3.4 3.5 2.0 2.9
GNP............................. 1.6 1.8 2.1 3.2 3.1 1.7 2.0 1.0 1.8 1.3 2.0 2.9 1.1 1.3 1.4 2.7 3.2 1.5 2.3
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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
---------------------------------------------------
2002 2003 2004r IV 03 I 04 II 04 III 04 IV 04r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product............. 102.626 105.749 110.440 107.780 108.969 109.858 110.941 111.993
Personal consumption expenditures.......... 105.698 109.143 113.253 110.794 111.925 112.360 113.776 114.951
Durable goods............................ 111.150 119.378 127.338 123.902 124.572 124.482 129.529 130.768
Nondurable goods......................... 104.630 108.481 113.417 110.517 112.331 112.367 113.659 115.310
Services................................. 105.085 107.418 110.423 108.346 109.237 109.955 110.782 111.717
Gross private domestic investment.......... 89.928 93.852 106.223 98.771 101.672 106.191 106.823 110.207
Fixed investment......................... 92.253 96.924 106.877 101.412 102.529 105.913 108.170 110.897
Nonresidential......................... 87.302 90.157 99.720 94.235 95.204 98.041 101.075 104.560
Structures........................... 80.346 75.810 76.844 77.406 75.886 77.171 76.958 77.359
Equipment and software............... 89.947 95.679 108.670 100.735 102.699 106.157 110.524 115.299
Residential............................ 105.178 114.392 125.457 119.916 121.400 126.122 126.628 127.680
Change in private inventories............ ..... ..... ..... ..... ..... ..... ..... .....
Exports of goods and services.............. 92.343 94.116 102.195 98.170 99.924 101.690 103.176 103.991
Imports of goods and services.............. 100.585 105.048 115.468 108.725 111.504 114.862 116.167 119.340
Government consumption expenditures and
gross investment.......................... 107.918 110.906 113.066 111.738 112.443 113.062 113.259 113.500
Federal.................................. 111.725 119.140 124.695 121.154 123.249 124.068 125.539 125.922
State and local.......................... 105.999 106.739 107.171 106.968 106.965 107.482 107.033 107.202
Addenda:
Final sales of domestic product.......... 103.102 106.346 110.595 108.290 109.173 109.854 111.211 112.141
Gross domestic purchases................. 103.414 106.858 111.988 108.904 110.253 111.393 112.465 113.840
Final sales to domestic purchasers....... 103.876 107.438 112.143 109.401 110.455 111.396 112.731 113.991
Gross national product................... 102.494 105.865 110.421 108.192 109.241 109.769 110.863 111.812
-----------------------------------------------------------------------------------------------------------------------------------
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
---------------------------------------------------
2002 2003 2004r IV 03 I 04 II 04 III 04 IV 04r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product............. 104.097 106.003 108.298 106.586 107.314 108.169 108.551 109.159
Personal consumption expenditures
(PCE)..................................... 103.548 105.511 107.824 106.005 106.860 107.683 108.021 108.734
Durable goods............................ 95.475 92.244 90.378 90.747 90.741 90.725 90.008 90.039
Nondurable goods......................... 102.097 104.154 107.626 104.564 105.914 107.616 107.869 109.106
Services................................. 106.083 109.237 111.999 110.266 111.085 111.667 112.314 112.932
Gross private domestic investment.......... 101.221 102.304 104.898 102.968 103.514 104.644 105.405 106.029
Fixed investment......................... 101.232 102.435 104.978 103.101 103.618 104.709 105.482 106.101
Nonresidential......................... 98.909 98.546 99.328 98.729 98.793 99.220 99.449 99.850
Structures........................... 107.908 110.176 115.578 110.633 111.926 113.984 116.677 119.726
Equipment and software............... 95.868 94.754 94.382 94.862 94.611 94.626 94.256 94.034
Residential............................ 107.246 111.951 118.338 113.675 115.179 117.710 119.674 120.787
Change in private inventories............ ..... ..... ..... ..... ..... ..... ..... .....
Exports of goods and services.............. 99.275 101.395 104.919 102.146 103.565 104.746 105.175 106.189
Imports of goods and services.............. 96.326 99.615 104.508 99.837 102.163 103.760 105.066 107.042
Government consumption expenditures and
gross investment.......................... 105.313 108.702 112.187 109.167 110.522 111.703 112.682 113.841
Federal.................................. 105.288 109.081 112.213 109.447 111.203 112.020 112.491 113.138
State and local.......................... 105.317 108.485 112.180 109.007 110.131 111.524 112.802 114.265
Addenda:
PCE excluding food and energy............ 103.707 105.072 106.643 105.527 106.081 106.523 106.753 107.217
Market-based PCE\1\...................... 103.113 105.040 107.427 105.496 106.334 107.292 107.674 108.406
Market-based PCE excluding food
and energy\1\........................... 103.186 104.388 105.905 104.790 105.261 105.798 106.060 106.500
Final sales of domestic product.......... 104.100 106.025 108.310 106.608 107.332 108.178 108.561 109.168
Gross domestic purchases................. 103.489 105.571 108.131 106.086 106.980 107.913 108.429 109.203
Final sales to domestic purchasers....... 103.491 105.592 108.143 106.107 106.997 107.923 108.440 109.214
Gross national product................... 104.087 105.997 108.295 106.579 107.308 108.164 108.549 109.158
Implicit price deflators:
Gross domestic product................. 104.092 105.998 108.237 106.523 107.246 108.093 108.482 109.100
Final sales of domestic product........ 104.100 106.025 108.310 106.601 107.325 108.172 108.555 109.161
Gross domestic purchases............... 103.484 105.566 108.077 106.028 106.916 107.842 108.364 109.149
Final sales to domestic purchasers..... 103.491 105.592 108.148 106.102 106.992 107.917 108.435 109.208
Gross national product................. 104.082 105.992 108.232 106.516 107.240 108.087 108.479 109.099
-----------------------------------------------------------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP).... 3.5 1.9 -.2 3.3 2.7 4.0 2.5 3.7 4.5 4.2 4.5 3.7 .8 1.9 3.0 4.4
Personal consumption expenditures...... 2.8 2.0 .2 3.3 3.3 3.7 2.7 3.4 3.8 5.0 5.1 4.7 2.5 3.1 3.3 3.8
Durable goods........................ 2.2 -.3 -5.6 5.9 7.8 8.4 4.4 7.8 8.6 11.3 11.7 7.3 4.3 6.5 7.4 6.7
Nondurable goods..................... 2.8 1.6 -.2 2.0 2.7 3.5 2.2 2.6 2.7 4.0 4.6 3.8 2.0 2.6 3.7 4.6
Services............................. 3.0 2.9 1.7 3.5 2.8 2.9 2.6 2.9 3.3 4.2 4.0 4.5 2.4 2.6 2.2 2.8
Gross private domestic investment...... 4.0 -3.4 -8.1 8.1 8.9 13.6 3.1 8.9 12.4 9.8 7.8 5.7 -7.9 -2.4 4.4 13.2
Fixed investment..................... 3.0 -2.1 -6.5 5.9 8.6 9.3 6.5 9.0 9.2 10.2 8.3 6.5 -3.0 -4.9 5.1 10.3
Nonresidential..................... 5.6 .5 -5.4 3.2 8.7 9.2 10.5 9.3 12.1 11.1 9.2 8.7 -4.2 -8.9 3.3 10.6
Structures....................... 2.0 1.5 -11.1 -6.0 -.7 1.8 6.4 5.6 7.3 5.1 -.4 6.8 -2.3 -17.8 -5.6 1.4
Equipment and software........... 7.3 .0 -2.6 7.3 12.5 11.9 12.0 10.6 13.8 13.3 12.7 9.4 -4.9 -5.5 6.4 13.6
Residential........................ -3.0 -8.6 -9.6 13.8 8.2 9.6 -3.2 8.0 1.9 7.6 6.0 .8 .4 4.8 8.8 9.7
Change in private inventories........ ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Net exports of goods and services...... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Exports.............................. 11.5 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 1.9 8.6
Goods.............................. 11.9 8.4 6.9 7.5 3.3 9.7 11.7 8.8 14.3 2.2 3.8 11.2 -6.1 -4.1 2.2 8.8
Services........................... 10.3 10.5 6.0 5.5 3.2 6.3 6.3 7.2 5.9 2.9 5.6 2.9 -3.7 1.8 1.4 8.0
Imports.............................. 4.4 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 4.4 9.9
Goods.............................. 4.3 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 4.7 10.8
Services........................... 4.9 6.5 -2.6 -2.6 2.9 5.7 3.3 5.5 9.4 11.4 6.9 11.1 -.3 1.9 3.1 5.8
Government consumption expenditures
and gross investment.................. 2.6 3.2 1.1 .5 -.9 .0 .5 1.0 1.9 1.9 3.9 2.1 3.4 4.4 2.8 1.9
Federal.............................. 1.5 2.0 -.2 -1.7 -4.2 -3.7 -2.7 -1.2 -1.0 -1.1 2.2 .9 3.9 7.5 6.6 4.7
National defense................... -.5 .0 -1.1 -5.0 -5.6 -4.9 -3.8 -1.4 -2.8 -2.1 1.9 -.5 3.9 7.7 9.0 7.3
Nondefense......................... 8.3 8.3 2.4 6.9 -.7 -1.2 -.4 -.7 2.6 .7 2.8 3.5 3.9 7.1 2.4 -.5
State and local...................... 3.4 4.1 2.1 2.2 1.4 2.6 2.6 2.3 3.6 3.6 4.7 2.7 3.2 2.8 .7 .4
Addenda:
Final sales of domestic product...... 3.4 2.1 .1 3.0 2.6 3.4 3.0 3.7 4.0 4.2 4.5 3.8 1.6 1.4 3.1 4.0
Gross domestic purchases............. 3.0 1.4 -.8 3.3 3.2 4.4 2.4 3.8 4.8 5.3 5.3 4.4 .9 2.5 3.3 4.8
Final sales to domestic purchasers... 2.8 1.6 -.6 3.1 3.2 3.8 2.8 3.8 4.3 5.3 5.4 4.5 1.8 2.1 3.4 4.4
Gross national product............... 3.5 2.0 -.3 3.3 2.7 3.9 2.6 3.7 4.4 4.0 4.6 3.7 .8 1.7 3.3 4.3
Real disposable personal income...... 2.8 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 2.3 3.5
Price indexes:
Gross domestic purchases........... 3.8 4.1 3.3 2.3 2.2 2.1 2.1 1.8 1.4 .6 1.6 2.5 2.0 1.5 2.0 2.4
Gross domestic purchases excluding
food and energy................... 3.6 3.7 3.5 2.6 2.3 2.2 2.2 1.5 1.3 1.0 1.4 1.9 1.9 1.8 1.6 1.9
GDP................................ 3.8 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 1.8 2.2
GDP excluding food and energy...... 3.6 3.7 3.6 2.5 2.4 2.2 2.1 1.7 1.7 1.2 1.5 2.0 2.1 2.0 1.6 1.9
Personal consumption expenditures.. 4.4 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 2.2
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
r Revised.
Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
I 01 II 01 III 01 IV 01 I 02 II 02 III 02 IV 02 I 03 II 03 III 03 IV 03 I 04 II 04 III 04 IV 04r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP).... 1.9 .6 .4 .2 1.2 1.5 2.5 2.3 1.9 2.3 3.5 4.4 5.0 4.8 4.0 3.9
Personal consumption expenditures
(PCE)................................. 2.9 2.5 2.0 2.8 2.9 3.3 3.6 2.5 2.7 3.0 3.5 3.8 4.2 3.6 3.6 3.8
Durable goods........................ .8 3.2 2.5 10.8 6.6 7.8 10.6 1.5 3.8 7.6 8.2 9.9 10.5 5.4 5.5 5.5
Nondurable goods..................... 3.0 1.6 1.6 1.9 2.7 3.0 2.2 2.3 2.6 2.8 4.7 4.6 5.1 4.7 4.1 4.3
Services............................. 3.3 2.8 2.0 1.6 2.2 2.6 2.9 2.9 2.6 2.1 2.0 2.2 2.5 2.7 2.9 3.1
Gross private domestic investment...... -.5 -8.5 -8.6 -13.8 -7.1 -5.1 -1.5 5.0 .7 1.5 5.7 9.4 12.8 16.8 11.7 11.6
Fixed investment..................... 1.6 -2.9 -3.8 -6.7 -7.1 -5.8 -4.6 -2.1 -.4 3.1 7.4 10.3 10.9 11.6 9.4 9.4
Nonresidential..................... 3.2 -3.9 -6.1 -9.6 -10.9 -9.9 -8.5 -6.0 -3.6 1.7 5.8 9.4 10.6 10.8 10.1 11.0
Structures....................... 4.6 -.6 -1.4 -11.1 -13.7 -18.3 -22.9 -16.1 -14.8 -6.0 -2.1 1.5 3.0 1.3 1.3 -.1
Equipment and software........... 2.7 -5.1 -7.8 -9.0 -9.8 -6.7 -2.7 -2.2 .5 4.4 8.4 12.1 13.1 13.9 12.9 14.5
Residential........................ -2.3 -.1 2.5 1.4 3.1 4.5 4.7 6.9 6.4 5.9 10.6 12.0 11.3 13.2 8.0 6.5
Change in private inventories........ ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Net exports of goods and services...... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Exports.............................. 3.4 -2.9 -9.9 -11.9 -9.6 -4.0 1.7 3.5 1.9 -1.1 .8 6.1 8.4 10.8 9.4 5.9
Goods.............................. 4.8 -3.2 -12.2 -13.0 -12.2 -5.0 1.2 .8 2.3 -1.2 .5 7.1 8.5 10.3 10.1 6.6
Services........................... .1 -2.0 -4.0 -8.9 -3.1 -1.8 2.7 9.8 1.0 -.9 1.5 3.8 8.3 11.9 7.8 4.4
Imports.............................. 5.9 -1.4 -7.2 -7.6 -3.9 2.1 6.3 9.7 6.0 3.8 3.2 4.9 8.1 10.7 11.1 9.8
Goods.............................. 6.3 -2.6 -7.8 -7.9 -4.8 3.3 7.1 9.8 6.7 4.3 2.8 5.1 8.8 10.8 12.1 11.3
Services........................... 4.2 4.7 -3.7 -5.9 .7 -3.7 2.0 8.9 2.4 1.4 5.0 3.7 4.7 10.0 6.3 2.2
Government consumption expenditures
and gross investment.................. 2.5 3.0 3.2 5.0 4.8 4.0 4.9 3.8 2.7 3.3 2.8 2.2 2.8 1.6 1.8 1.6
Federal.............................. 3.6 1.7 4.0 6.4 6.4 7.3 8.1 8.2 6.1 8.3 6.6 5.5 7.3 2.7 4.8 3.9
National defense................... 4.2 1.3 3.8 6.5 6.2 8.0 8.2 8.5 6.2 12.1 9.0 8.5 12.1 3.8 8.5 5.4
Nondefense......................... 2.5 2.6 4.2 6.3 6.9 6.2 7.8 7.6 6.1 1.4 2.4 .0 -1.5 .6 -2.2 1.0
State and local...................... 1.9 3.7 2.8 4.2 4.0 2.2 3.3 1.6 .9 .7 .8 .4 .4 1.0 .0 .2
Addenda:
Final sales of domestic product...... 2.2 1.6 1.2 1.5 1.2 1.4 2.0 1.2 1.7 2.6 3.8 4.5 4.7 4.1 3.6 3.6
Gross domestic purchases............. 2.3 .7 .4 .4 1.6 2.1 3.1 3.1 2.4 2.8 3.7 4.3 5.1 5.1 4.5 4.5
Final sales to domestic purchasers... 2.6 1.7 1.2 1.6 1.6 2.0 2.6 2.1 2.3 3.1 3.9 4.4 4.9 4.4 4.1 4.2
Gross national product............... 1.9 .7 .2 .4 1.0 1.2 2.6 2.0 2.0 2.6 3.7 4.8 5.3 4.7 3.8 3.3
Real disposable personal income...... 2.4 1.3 2.8 1.2 3.5 4.6 1.4 2.9 .7 1.1 3.5 3.9 4.0 3.7 2.4 4.1
Price indexes:
Gross domestic purchases........... 2.1 2.3 1.9 1.6 1.3 1.3 1.5 1.8 2.5 1.9 1.9 1.8 1.7 2.5 2.6 2.9
Gross domestic purchases excluding
food and energy................... 1.7 1.8 1.9 2.1 1.9 1.8 1.8 1.6 1.8 1.6 1.5 1.4 1.5 1.9 2.1 2.2
GDP................................ 2.2 2.5 2.4 2.4 1.9 1.5 1.5 1.6 2.0 1.9 1.8 1.7 1.7 2.3 2.3 2.4
GDP excluding food and energy...... 1.8 2.0 2.1 2.3 2.2 2.0 1.9 1.7 1.9 1.6 1.5 1.4 1.4 1.9 2.1 2.2
PCE................................ 2.2 2.4 2.0 1.7 1.1 1.2 1.6 1.8 2.4 1.8 1.7 1.7 1.7 2.3 2.2 2.6
PCE excluding food and energy...... 1.6 1.8 2.0 2.2 1.8 1.8 1.9 1.5 1.6 1.4 1.1 1.2 1.4 1.5 1.5 1.6
Market-based PCE\1\................ 2.2 2.3 1.9 1.3 .8 .9 1.2 1.7 2.3 1.8 1.8 1.6 1.7 2.4 2.3 2.8
Market-based PCE excluding food
and energy\1\..................... 1.5 1.7 1.8 1.8 1.5 1.6 1.5 1.4 1.4 1.2 1.1 1.0 1.3 1.5 1.4 1.6
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
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
---------------------------------------------------
2002 2003 2004r IV 03 I 04 II 04 III 04 IV 04r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product..................... 10,487.0 11,004.0 11,735.0 11,270.9 11,472.6 11,657.5 11,814.9 11,994.8
Plus: Income receipts from the rest of the
world..................................... 301.8 329.0 405.8 371.8 373.8 388.0 406.8 454.7
Less: Income payments to the rest of the
world..................................... 274.7 273.9 361.9 284.6 300.3 351.9 368.6 426.7
Equals: Gross national product............. 10,514.1 11,059.2 11,778.9 11,358.1 11,546.1 11,693.6 11,853.0 12,022.8
Less: Consumption of fixed capital......... 1,303.9 1,353.9 1,407.3 1,374.2 1,355.0 1,375.2 1,497.9 1,401.2
Less: Statistical discrepancy.............. -15.3 25.6 50.9 12.8 63.0 56.4 60.4 24.0
Equals: National income.................... 9,225.4 9,679.6 10,320.6 9,971.1 10,128.1 10,262.0 10,294.7 10,597.6
Compensation of employees................ 6,069.5 6,289.0 6,632.0 6,406.7 6,489.4 6,578.5 6,687.4 6,772.5
Wage and salary accruals............... 4,976.3 5,103.6 5,355.7 5,188.9 5,240.7 5,311.4 5,403.0 5,467.8
Supplements to wages and salaries...... 1,093.2 1,185.5 1,276.3 1,217.8 1,248.8 1,267.2 1,284.4 1,304.7
Proprietors' income with inventory
valuation and capital consumption
adjustments............................. 769.6 834.1 902.8 864.7 872.1 901.4 902.9 934.9
Rental income of persons with capital
consumption adjustment.................. 170.9 153.8 165.1 167.1 172.8 172.6 153.8 161.3
Corporate profits with inventory
valuation and capital consumption
adjustments............................. 874.6 1,021.1 1,181.6 1,129.1 1,165.6 1,173.9 1,118.0 1,268.8
Net interest and miscellaneous payments.. 532.9 543.0 549.5 545.3 554.5 548.5 546.7 548.2
Taxes on production and imports less
subsidies............................... 724.4 751.3 800.6 769.4 782.9 796.3 803.5 819.9
Business current transfer payments....... 80.9 77.7 82.1 80.1 82.7 83.5 76.0 86.3
Current surplus of government
enterprises............................. 2.8 9.5 6.9 8.7 8.1 7.4 6.5 5.7
Addendum:
Gross domestic income.................... 10,502.3 10,978.5 11,684.0 11,258.1 11,409.6 11,601.1 11,754.5 11,970.9
-----------------------------------------------------------------------------------------------------------------------------------
r Revised.
Table 10.--Personal Income and Its Disposition
[Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
Seasonally adjusted at annual rates
---------------------------------------------------
2002 2003 2004r IV 03 I 04 II 04 III 04 IV 04r
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\......................... 8,878.9 9,161.8 9,673.0 9,330.0 9,445.0 9,592.7 9,700.4 9,953.8
Compensation of employees, received...... 6,069.5 6,289.0 6,632.0 6,406.7 6,487.9 6,580.0 6,687.4 6,772.5
Wage and salary disbursements.......... 4,976.3 5,103.6 5,355.7 5,188.9 5,239.2 5,312.8 5,403.0 5,467.8
Supplements to wages and salaries...... 1,093.2 1,185.5 1,276.3 1,217.8 1,248.8 1,267.2 1,284.4 1,304.7
Proprietors' income with inventory
valuation and capital consumption
adjustments............................. 769.6 834.1 902.8 864.7 872.1 901.4 902.9 934.9
Farm................................... 9.7 21.8 18.2 24.7 17.9 18.9 13.6 22.4
Nonfarm................................ 759.9 812.3 884.6 840.0 854.2 882.5 889.3 912.5
Rental income of persons with capital
consumption adjustment.................. 170.9 153.8 165.1 167.1 172.8 172.6 153.8 161.3
Personal income receipts on assets....... 1,334.6 1,322.7 1,387.3 1,325.8 1,337.1 1,352.3 1,367.8 1,491.9
Personal interest income............... 946.7 929.9 946.2 932.0 936.2 941.7 946.5 960.5
Personal dividend income............... 387.9 392.8 441.1 393.8 400.9 410.6 421.3 531.4
Personal current transfer receipts....... 1,282.7 1,335.4 1,405.9 1,350.7 1,379.0 1,400.4 1,415.4 1,428.9
Less: Contributions for government
social insurance........................ 748.3 773.2 820.2 785.0 803.9 814.0 826.9 835.7
Less: Personal current taxes............... 1,051.2 1,001.9 1,038.9 1,009.4 1,006.6 1,030.6 1,048.9 1,069.5
Equals: Disposable personal income......... 7,827.7 8,159.9 8,634.0 8,320.5 8,438.4 8,562.1 8,651.5 8,884.2
Less: Personal outlays..................... 7,668.5 8,049.3 8,531.9 8,209.4 8,351.6 8,448.7 8,588.1 8,739.3
Equals: Personal saving.................... 159.2 110.6 102.1 111.1 86.8 113.4 63.4 145.0
Personal saving as a percentage of
disposable personal income.............. 2.0 1.4 1.2 1.3 1.0 1.3 .7 1.6
Addendum:
Disposable personal income, billions of
chained (2000) dollars\2\............... 7,559.5 7,733.8 8,007.3 7,849.6 7,897.0 7,951.5 8,009.5 8,170.9
-----------------------------------------------------------------------------------------------------------------------------------
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
--------------------------------------- ------------------------------- -------
2002 2003 2004 IV 03 I 04 II 04 III 04 IV 04 2003 2004 I 04 II 04 III 04 IV 04 IV 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
valuation and capital consumption
adjustments......................... 874.6 1,021.1 1,181.6 1,129.1 1,165.6 1,173.9 1,118.0 1,268.8 16.8 15.7 3.2 .7 -4.8 13.5 12.4
Less: Taxes on corporate income...... 183.8 234.9 269.2 252.3 256.5 271.2 253.3 295.7 27.8 14.6 1.6 5.7 -6.6 16.8 17.2
Equals: Profits after tax with
inventory valuation and capital
consumption adjustments............. 690.7 786.2 912.4 876.8 909.1 902.7 864.7 973.0 13.8 16.0 3.7 -.7 -4.2 12.5 11.0
Net dividends...................... 390.0 395.3 443.9 396.4 403.4 413.2 424.0 534.7 1.4 12.3 1.8 2.4 2.6 26.1 34.9
Undistributed profits with
inventory valuation and capital
consumption adjustments........... 300.7 390.9 468.5 480.4 505.7 489.5 440.7 438.3 30.0 19.9 5.3 -3.2 -10.0 -.5 -8.8
Cash flow:
Net cash flow with inventory
valuation and capital consumption
adjustments....................... 1,058.5 1,173.4 1,264.6 1,273.2 1,279.1 1,273.4 1,271.8 1,234.1 10.9 7.8 .5 -.4 -.1 -3.0 -3.1
Undistributed profits with
inventory valuation and capital
consumption adjustments......... 300.7 390.9 468.5 480.4 505.7 489.5 440.7 438.3 30.0 19.9 5.3 -3.2 -10.0 -.5 -8.8
Consumption of fixed capital..... 757.8 782.5 796.1 792.9 773.4 783.9 831.2 795.8 3.3 1.7 -2.5 1.4 6.0 -4.3 .4
Less: Inventory valuation
adjustment........................ -1.2 -14.1 -42.9 -24.3 -37.0 -47.8 -37.8 -49.1 ..... ..... ..... ..... ..... ..... .....
Equals: Net cash flow.............. 1,059.8 1,187.5 1,307.5 1,297.6 1,316.1 1,321.2 1,309.6 1,283.2 12.1 10.1 1.4 .4 -.9 -2.0 -1.1
Addenda:
Profits before tax (without
inventory valuation and capital
consumption adjustments).......... 758.0 874.5 985.3 966.2 962.4 988.3 932.8 1,057.9 15.4 12.7 -.4 2.7 -5.6 13.4 9.5
Profits after tax (without
inventory valuation and capital
consumption adjustments).......... 574.2 639.6 716.2 713.9 705.9 717.1 679.5 762.1 11.4 12.0 -1.1 1.6 -5.3 12.2 6.8
Inventory valuation adjustment..... -1.2 -14.1 -42.9 -24.3 -37.0 -47.8 -37.8 -49.1 ..... ..... ..... ..... ..... ..... .....
Capital consumption adjustment..... 117.8 160.8 239.1 187.2 240.2 233.3 223.0 260.0 36.5 48.7 28.3 -2.9 -4.4 16.6 38.9
-------------------------------------------------------------------------------------------------------------------------------------------------------------
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
--------------------------------------- ----------------------------------------------
2002 2003 2004 IV 03 I 04 II 04 III 04 IV 04 2003 2004 I 04 II 04 III 04 IV 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
valuation and capital consumption
adjustments............................. 874.6 1,021.1 1,181.6 1,129.1 1,165.6 1,173.9 1,118.0 1,268.8 146.5 160.5 36.5 8.3 -55.9 150.8
Domestic industries.......................... 716.8 844.2 989.6 913.3 960.3 988.6 929.3 1,080.1 127.4 145.4 47.0 28.3 -59.3 150.8
Financial.................................. 298.4 327.8 336.4 335.9 355.7 347.8 279.1 363.2 29.4 8.6 19.8 -7.9 -68.7 84.1
Nonfinancial............................... 418.4 516.4 653.1 577.3 604.6 640.8 650.2 716.9 98.0 136.7 27.3 36.2 9.4 66.7
Rest of the world............................ 157.8 176.9 192.0 215.8 205.3 185.3 188.7 188.7 19.1 15.1 -10.5 -20.0 3.4 .0
Receipts from the rest of the world........ 206.0 250.7 315.4 293.4 299.0 305.6 313.1 343.9 44.7 64.7 5.6 6.6 7.5 30.8
Less: Payments to the rest of the world.... 48.2 73.8 123.4 77.5 93.7 120.3 124.5 155.3 25.6 49.6 16.2 26.6 4.2 30.8
Corporate profits with inventory
valuation adjustment.................... 756.8 860.4 942.4 941.9 925.4 940.6 895.0 1,008.8 103.6 82.0 -16.5 15.2 -45.6 113.8
Domestic industries.......................... 599.0 683.4 750.4 726.1 720.0 755.2 706.3 820.1 84.4 67.0 -6.1 35.2 -48.9 113.8
Financial.................................. 276.2 299.8 294.0 305.3 313.7 306.4 237.6 318.2 23.6 -5.8 8.4 -7.3 -68.8 80.6
Federal Reserve banks.................... 22.9 19.2 19.1 17.6 18.2 18.1 19.0 21.1 -3.7 -.1 .6 -.1 .9 2.1
Other financial.......................... 253.3 280.6 274.9 287.8 295.5 288.3 218.6 297.1 27.3 -5.7 7.7 -7.2 -69.7 78.5
Nonfinancial............................... 322.8 383.6 456.4 420.7 406.4 448.8 468.7 501.9 60.8 72.8 -14.3 42.4 19.9 33.2
Utilities................................ 11.4 18.8 23.3 24.3 23.2 21.5 21.1 27.5 7.4 4.5 -1.1 -1.7 -.4 6.4
Manufacturing............................ 50.7 67.3 105.9 93.4 81.5 94.8 105.0 142.4 16.6 38.6 -11.9 13.3 10.2 37.4
Durable goods.......................... -8.3 -3.5 23.9 9.3 2.8 14.9 29.8 48.1 4.8 27.4 -6.5 12.1 14.9 18.3
Fabricated metal products............ 9.3 10.1 13.6 13.2 11.8 12.1 13.1 17.2 .8 3.5 -1.4 .3 1.0 4.1
Machinery............................ 1.6 -.5 3.4 1.1 2.2 3.6 6.7 1.1 -2.1 3.9 1.1 1.4 3.1 -5.6
Computer and electronic products..... -32.9 -15.4 -13.8 -14.0 -17.2 -15.9 -10.5 -11.5 17.5 1.6 -3.2 1.3 5.4 -1.0
Electrical equipment, appliances,
and components...................... -.2 -3.2 -2.7 -4.4 -8.1 -1.6 -5.5 4.4 -3.0 .5 -3.7 6.5 -3.9 9.9
Motor vehicles, bodies and trailers,
and parts........................... -6.0 -6.2 2.7 -5.0 -.5 -1.2 5.0 7.4 -.2 8.9 4.5 -.7 6.2 2.4
Other durable goods.................. 19.8 11.8 20.8 18.4 14.6 18.0 21.2 29.6 -8.0 9.0 -3.8 3.4 3.2 8.4
Nondurable goods....................... 58.9 70.7 82.0 84.1 78.6 79.9 75.2 94.4 11.8 11.3 -5.5 1.3 -4.7 19.2
Food and beverage and tobacco
products............................ 24.1 27.7 26.9 34.2 31.1 27.9 26.4 22.4 3.6 -.8 -3.1 -3.2 -1.5 -4.0
Petroleum and coal products.......... 4.0 14.8 28.6 18.7 24.5 27.3 20.0 42.5 10.8 13.8 5.8 2.8 -7.3 22.5
Chemical products.................... 17.1 21.2 12.7 21.3 14.1 13.7 14.8 8.4 4.1 -8.5 -7.2 -.4 1.1 -6.4
Other nondurable goods............... 13.6 7.1 13.8 9.8 8.9 11.0 14.0 21.1 -6.5 6.7 -.9 2.1 3.0 7.1
Wholesale trade.......................... 51.0 47.9 54.6 50.1 46.0 52.2 61.1 59.0 -3.1 6.7 -4.1 6.2 8.9 -2.1
Retail trade............................. 78.1 77.7 72.2 74.7 80.0 73.1 64.7 70.8 -.4 -5.5 5.3 -6.9 -8.4 6.1
Transportation and warehousing........... -1.3 10.5 9.7 12.4 11.7 15.5 7.3 4.5 11.8 -.8 -.7 3.8 -8.2 -2.8
Information.............................. -11.2 -.7 9.5 -1.0 -6.6 16.5 21.6 6.6 10.5 10.2 -5.6 23.1 5.1 -15.0
Other nonfinancial....................... 144.2 162.1 181.2 166.8 170.7 175.1 187.9 191.2 17.9 19.1 3.9 4.4 12.8 3.3
Rest of the world............................ 157.8 176.9 192.0 215.8 205.3 185.3 188.7 188.7 19.1 15.1 -10.5 -20.0 3.4 .0
-------------------------------------------------------------------------------------------------------------------------------------------------------------
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
---------------------------------------------------
2002 2003 2004 IV 03 I 04 II 04 III 04r IV 04
-----------------------------------------------------------------------------------------------------------------------------------
Billions of dollars
----------------------------------------------------------------------------------------
Gross value added of nonfinancial
corporate business.................... 5,377.7 5,606.8 6,011.0 5,767.5 5,839.4 5,955.5 6,058.2 6,190.8
Consumption of fixed capital............... 655.7 676.4 692.6 684.3 671.8 680.9 726.8 691.0
Net value added............................ 4,722.0 4,930.5 5,318.4 5,083.3 5,167.6 5,274.7 5,331.4 5,499.8
Compensation of employees................ 3,601.3 3,696.2 3,913.0 3,771.0 3,818.1 3,878.6 3,949.7 4,005.7
Wage and salary accruals............... 2,971.0 3,006.9 3,167.4 3,062.8 3,089.9 3,138.5 3,199.1 3,241.8
Supplements to wages and salaries...... 630.3 689.3 745.7 708.3 728.1 740.1 750.5 763.9
Taxes on production and imports less
subsidies............................... 465.1 483.4 511.4 495.0 501.1 508.4 511.7 524.4
Net operating surplus.................... 655.5 750.8 893.9 817.2 848.5 887.6 870.0 969.7
Net interest and miscellaneous
payments.............................. 181.7 170.8 177.5 172.1 174.8 177.2 177.3 180.5
Business current transfer payments..... 55.5 63.5 63.3 67.8 69.0 69.6 42.5 72.2
Corporate profits with inventory
valuation and capital consumption
adjustments........................... 418.4 516.4 653.1 577.3 604.6 640.8 650.2 716.9
Taxes on corporate income............ 89.0 130.0 165.8 146.8 147.7 164.9 167.5 183.3
Profits after tax with inventory
valuation and capital consumption
adjustments......................... 329.4 386.4 487.3 430.5 456.9 475.9 482.7 533.6
Net dividends...................... 254.9 275.4 303.9 273.6 270.6 265.5 278.7 400.8
Undistributed profits with
inventory valuation and capital
consumption adjustments........... 74.5 111.0 183.4 156.9 186.2 210.5 204.0 132.9
Addenda:
Profits before tax (without inventory
valuation and capital consumption
adjustments)............................ 324.1 397.7 499.4 445.0 443.4 496.5 506.5 551.0
Profits after tax (without inventory
valuation and capital consumption
adjustments)............................ 235.1 267.7 333.5 298.2 295.6 331.7 338.9 367.8
Inventory valuation adjustment........... -1.2 -14.1 -42.9 -24.3 -37.0 -47.8 -37.8 -49.1
Capital consumption adjustment........... 95.6 132.9 196.7 156.6 198.3 192.0 181.5 215.0
----------------------------------------------------------------------------------------
Billions of chained (2000) dollars
----------------------------------------------------------------------------------------
Gross value added of nonfinancial
corporate business\1\................. 5,275.9 5,423.0 5,713.6 5,552.0 5,598.7 5,657.4 5,752.2 5,846.0
Consumption of fixed capital\2\............ 628.0 647.2 668.3 655.1 654.1 657.2 697.3 664.7
Net value added\3\......................... 4,647.9 4,775.8 5,045.2 4,897.0 4,944.6 5,000.2 5,054.8 5,181.3
----------------------------------------------------------------------------------------
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\... 1.019 1.034 1.052 1.039 1.043 1.053 1.053 1.059
Compensation of employees (unit labor
cost)................................... .683 .682 .685 .679 .682 .686 .687 .685
Unit nonlabor cost....................... .257 .258 .253 .255 .253 .253 .253 .251
Consumption of fixed capital........... .124 .125 .121 .123 .120 .120 .126 .118
Taxes on production and imports less
subsidies plus business current
transfer payments..................... .099 .101 .101 .101 .102 .102 .096 .102
Net interest and miscellaneous payments .034 .032 .031 .031 .031 .031 .031 .031
Corporate profits with inventory valuation
and capital consumption adjustments (unit
profits from current production)........ .079 .095 .114 .104 .108 .113 .113 .123
Taxes on corporate income.............. .017 .024 .029 .026 .026 .029 .029 .031
Profits after tax with inventory
valuation and capital consumption
adjustments........................... .062 .071 .085 .078 .082 .084 .084 .091
-----------------------------------------------------------------------------------------------------------------------------------
r Revised. Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the third
quarter of 2004.
1. Effective December 22, 2004, chained-dollar gross value added of
nonfinancial corporate business was revised beginning with 1929. The
current-dollar gross value added is deflated by a revised chain-type
price index calculated using the gross value added chain-type price
index for nonfinancial industries from the comprehensive revision of
the GDP-by-industry accounts.
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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2002 2003 2004r I 01 II 01 III 01 IV 01 I 02 II 02 III 02 IV 02 I 03 II 03 III 03 IV 03 I 04 II 04 III 04 IV 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
related aggregates:
GDP............................... 1.9 3.0 4.4 -.5 1.2 -1.4 1.6 3.4 2.4 2.6 .7 1.9 4.1 7.4 4.2 4.5 3.3 4.0 3.8
Goods............................. 1.2 4.3 7.4 -4.5 -1.3 -5.5 2.6 4.1 .9 4.7 -3.2 4.3 4.1 17.7 5.8 8.2 2.5 8.3 6.1
Services.......................... 3.0 2.3 2.7 1.9 1.8 1.7 2.8 3.4 4.2 2.2 3.0 .9 3.6 1.1 3.1 3.0 2.3 2.8 3.0
Structures........................ -2.4 3.0 5.3 .4 7.0 -4.3 -8.5 .9 -3.3 -2.4 .9 .0 7.3 13.9 5.4 .7 12.7 -2.5 1.4
Motor vehicle output.............. 11.6 4.2 5.6 -18.5 36.3 -5.7 22.0 7.3 10.3 18.4 6.0 -12.4 3.0 26.3 2.9 8.8 -15.2 10.4 27.6
GDP excluding motor vehicle
output........................... 1.5 3.0 4.4 .2 .2 -1.2 .9 3.3 2.1 2.1 .5 2.5 4.1 6.8 4.2 4.3 4.0 3.8 3.1
Final sales of computers\1\....... 8.8 41.0 22.7 48.2 -11.2 -19.4 23.7 -3.7 12.2 46.0 30.9 35.1 37.8 93.7 29.0 .1 .1 20.7 74.6
GDP excluding final sales of
computers........................ 1.8 2.8 4.3 -.9 1.4 -1.2 1.4 3.4 2.3 2.3 .5 1.7 3.8 6.8 4.0 4.5 3.3 3.9 3.3
Farm gross value added\2\......... 6.5 4.0 -9.8 -1.3 -31.0 -20.4 94.2 -39.2 69.9 26.1 -19.5 -13.9 52.3 .5 -30.6 -31.3 -21.3 36.4 77.1
Nonfarm business gross value
added\3\......................... 1.8 3.8 5.3 -1.1 1.2 -2.9 1.2 4.0 1.7 3.6 1.4 2.4 5.3 9.3 4.6 5.7 4.2 4.2 3.7
Price indexes:
GDP............................... 1.7 1.8 2.2 3.3 3.1 1.6 1.7 1.4 1.5 1.7 2.0 2.7 1.1 1.4 1.6 2.8 3.2 1.4 2.3
GDP excluding food and energy..... 2.0 1.6 1.9 2.4 2.3 2.1 2.6 1.7 1.8 1.6 1.7 2.3 .8 1.1 1.5 2.3 2.7 1.8 2.1
GDP excluding final sales of
computers........................ 1.9 2.0 2.3 3.8 3.3 1.8 1.9 1.6 1.7 1.9 2.2 2.9 1.2 1.6 1.7 2.9 3.3 1.5 2.5
Gross domestic purchases.......... 1.5 2.0 2.4 2.7 2.3 1.0 .6 1.2 2.5 1.8 1.9 3.7 .4 1.7 1.4 3.4 3.5 1.9 2.9
Gross domestic purchases excluding
food and energy.................. 1.8 1.6 1.9 2.3 2.0 1.8 2.3 1.5 1.7 1.6 1.6 2.2 1.0 1.2 1.5 2.5 2.5 1.7 2.0
Gross domestic purchases excluding
final sales of computers to
domestic purchasers.............. 1.7 2.2 2.6 3.3 2.6 1.3 .9 1.4 2.6 2.0 2.1 4.0 .5 1.9 1.5 3.6 3.7 2.1 3.1
Personal consumption expenditures
(PCE)............................ 1.4 1.9 2.2 3.3 2.6 .6 .6 .9 2.9 2.0 1.4 3.2 .7 1.6 1.2 3.3 3.1 1.3 2.7
Personal consumption expenditures
excluding food and energy........ 1.8 1.3 1.5 2.8 2.1 1.4 2.6 1.2 2.0 2.0 .9 1.5 1.1 .9 1.3 2.1 1.7 .9 1.7
Market-based PCE\4\............... 1.1 1.9 2.3 2.8 2.1 .8 -.5 .6 2.9 1.8 1.5 3.0 .6 2.0 .8 3.2 3.7 1.4 2.7
Market-based PCE excluding food
and energy\4\.................... 1.5 1.2 1.5 2.1 1.3 1.9 1.6 1.0 1.8 1.7 1.1 .9 1.1 1.3 .8 1.8 2.1 1.0 1.7
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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 2002-03
annual percent change in real GDP uses prices for 2002 and 2003 as weights, and the 2002-03 annual
percent change in GDP prices uses quantities for 2002 and 2003 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.
