News Release

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, THURSDAY, JUNE 29, 2006
BEA 06-30

Gross Domestic Product and Corporate Profits: First Quarter 2006 "final" estimates

Available for this release: Full Release (PDF) | Technical Note, Tables (XLS), Highlights (PDF) 
Sign up for e-mail subscriptions.





Note: 
 Table Headers and Stubs for the July 28, 2006 Gross Domestic Product News Release




Virginia H. Mannering:  (202)   606-5304   (GDP)                                      BEA 06-30
Greg Key:               (202)   606-9727   (Profits)
Recorded message:       (202)   606-5306


                               GROSS DOMESTIC PRODUCT:  FIRST QUARTER 2006 (FINAL)
                                 CORPORATE PROFITS:  FIRST QUARTER 2006 (FINAL)

	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 5.6 percent in the first quarter of 2006, 
according to final estimates released by the Bureau of Economic Analysis.  In the fourth quarter, real 
GDP increased 1.7 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      
5.3 percent (see "Revisions" on page 3).

	The increase in real GDP in the first quarter primarily reflected positive contributions from 
personal consumption expenditures (PCE), exports, equipment and software, and federal government 
spending.  Imports, which are a subtraction in the calculation of GDP, increased.

	The acceleration in real GDP growth in the first quarter primarily reflected an upturn in PCE for 
durable goods, an acceleration in exports, an upturn in federal government spending, and an acceleration 
in equipment and software that were partly offset by a downturn in private inventory investment.


BOX
                  Annual Revision of the National Income and Product Accounts

	The annual revision of the national income and product accounts, covering the first quarter of 
  2003 through the first quarter of 2006, will be released along with the ?advance? estimates of GDP for
  the second quarter of 2006 on July 28.  An article describing the revision will appear in the August
  2006 issue of the Survey of Current Business.  For more information, see the Technical Note.


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 annualized.  "Real" estimates are in chained (2000)
dollars.  Prices indexes are chain-type measures.

                     This new release is available on BEA's Web site at www.bea.gov/bea/rels.htm.


        Final sales of computers contributed 0.05 percentage point to the first-quarter growth in real GDP
after contributing 0.33 percentage point to the fourth-quarter growth.  Motor vehicle output subtracted 
0.21 percentage point from the first-quarter growth in real GDP after subtracting 0.64 percentage point 
from the fourth-quarter growth.  

	The price index for gross domestic purchases, which measures prices paid by U.S. residents, 
increased 2.6 percent in the first quarter, 0.2 percentage point less than in the preliminary estimate; this 
index increased 3.7 percent in the fourth quarter.  Excluding food and energy prices, the price index for 
gross domestic purchases increased 3.0 percent in the first quarter, compared with an increase of 3.2 
percent in the fourth.  About 0.1 percentage point of the first-quarter increase in the index was accounted 
for by the pay raise for federal civilian and military personnel, which is treated as an increase in the 
price index of employee services purchased by the federal government.

	Real personal consumption expenditures increased 5.1 percent in the first quarter, compared with 
an increase of 0.9 percent in the fourth.  Real nonresidential fixed investment increased 14.2 percent, 
compared with an increase of 4.5 percent.  Nonresidential structures increased 12.5 percent, compared 
with an increase of 3.1 percent.  Equipment and software increased 14.8 percent, compared with an 
increase of 5.0 percent.  Real residential fixed investment increased 3.3 percent, compared with an 
increase of 2.8 percent.

	Real exports of goods and services increased 14.7 percent in the first quarter, compared with an 
increase of 5.1 percent in the fourth.  Real imports of goods and services increased 10.7 percent, 
compared with an increase of 12.1 percent.

	Real federal government consumption expenditures and gross investment increased 10.5 percent 
in the first quarter, in contrast to a decrease of 2.6 percent in the fourth.  National defense increased 9.6 
percent, in contrast to a decrease of 8.9 percent.  Nondefense increased 12.2 percent, compared with an 
increase of 11.7 percent.  Real state and local government consumption expenditures and gross 
investment increased 1.6 percent, compared with an increase of 0.2 percent.

	The real change in private inventories subtracted 0.24 percentage point from the first-quarter 
change in real GDP, after adding 1.89 percentage points to the fourth-quarter change.  Private businesses 
increased inventories $29.5 billion in the first quarter, following an increase of $37.9 billion in the 
fourth quarter and a decrease of $13.3 billion in the third.

	Real final sales of domestic product -- GDP less change in private inventories -- increased 5.9 
percent in the first quarter, in contrast to a decrease of 0.2 percent in the fourth.


Gross domestic purchases

	Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever 
produced -- increased 5.5 percent in the first quarter, compared with an increase of 2.9 percent in the 
fourth. 


Gross national product

	Real gross national product -- the goods and services produced by the labor and property supplied 
by U.S. residents -- increased 6.2 percent in the first quarter, compared with an increase of 0.7 percent in 
the fourth.  GNP includes, and GDP excludes, net receipts of income from the rest of the world, which 
increased $14.9 billion in the first quarter after decreasing $25.6 billion in the fourth; in the first quarter, 
receipts increased $30.7 billion, and payments increased $15.8 billion.


Current-dollar GDP

	Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 
8.9 percent, or $276.2 billion, in the first quarter to a level of $13,042.3 billion.  In the fourth quarter, 
current-dollar GDP increased 5.2 percent, or $160.4 billion.


Revisions

	The final estimate of the first-quarter increase in real GDP is 0.3 percentage point, or $8.9 billion, 
higher than the preliminary estimate issued last month.  The upward revision to the percent change in 
real GDP primarily reflected a downward revision to imports.


                                          Advance    Preliminary      Final
                                       (Percent change from preceding quarter)

Real GDP...............................     4.8         5.3            5.6
Current-dollar GDP.....................     8.2         8.8            8.9
Gross domestic purchases price index...     2.7         2.8            2.6



                                           Corporate Profits

	Profits from current production (corporate profits with inventory valuation and capital 
consumption adjustments) increased $176.7 billion in the first quarter, according to revised estimates.  
In the fourth quarter, profits increased $185.8 billion.  Current-production cash flow (net cash flow with 
inventory valuation and capital consumption adjustments) -- the internal funds available to corporations 
for investment -- increased $136.3 billion in the first quarter, compared with an increase of $43.1 billion 
in the fourth.

        Fourth-quarter profits from current production were reduced by $22.9 billion because of
Hurricane Wilma, reflecting the net benefits paid by domestic insurance companies and the uninsured 
losses of corporate property.

	Taxes on corporate income increased $30.6 billion in the first quarter, compared with an increase 
of $56.8 billion in the fourth.  Profits after tax with inventory valuation and capital consumption 
adjustments increased $146.1 billion in the first quarter, compared with an increase of $129.0 billion in 
the fourth.  Dividends increased $13.4 billion, compared with an increase of $15.3 billion; current-
production undistributed profits increased $132.6 billion, compared with an increase of $113.8 billion.

	Domestic profits of financial corporations increased $63.5 billion in the first quarter, compared 
with an increase of $104.9 billion in the fourth.  Domestic profits of nonfinancial corporations increased 
$83.2 billion in the first quarter, compared with an increase of $95.5 billion in the fourth.  In the first 
quarter, real gross corporate value added increased, reflecting an increase in unit prices, a decrease in 
unit labor costs, and no change in unit nonlabor costs.

	The rest-of-the-world component of profits increased $30.1 billion in the first quarter, in contrast 
to a decrease of $14.5 billion in the fourth.  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.  The first-quarter increase was 
accounted for by an increase in receipts and a decrease in payments.

	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 depreciation-accounting practices used for federal income tax returns.  According to this 
measure, domestic profits of financial and nonfinancial corporations increased.  The increase in  
nonfinancial corporations reflected increases in all the industries shown except retail trade, petroleum 
manufacturing, and wholesale trade.   

	Profits before tax increased $137.7 billion in the first quarter, compared with an increase of 
$177.5 billion in the fourth.  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 $19.4 billion in the first quarter (from -$50.7 billion to -$31.3 
billion), compared with an increase of $21.4 billion in the fourth.  The inventory valuation adjustment 
increased $19.4 billion (from -$40.4 billion to -$21.0 billion), in contrast to a decrease of $12.9 billion. 

     
     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
                  
                  
                                         *          *          *
                                    
                       Next release - July 28, 2006, at 8:30 A.M. EDT for:
                       Annual revision (first quarter 2003 through first
                       quarter 2006) and advance estimates of gross
                       domestic product for the second quarter of 2006

                                                                      

			- more -


                                    Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2003   2004   2005  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.7    4.2    3.5    2.2    2.4     .2    1.7    3.7    7.2    3.6    4.3    3.5    4.0    3.3    3.8    3.3    4.1    1.7    5.6

Personal consumption expenditures...    2.9    3.9    3.5    2.4    2.3    1.4    2.5    3.6    5.8    3.1    4.7    1.9    4.4    4.3    3.5    3.4    4.1     .9    5.1
  Durable goods.....................    6.6    6.0    4.5    3.6   11.5   -5.2    3.6   15.1   19.8    -.3    4.4     .4   10.8    5.5    2.6    7.9    9.3  -16.6   20.3
  Nondurable goods..................    3.2    4.7    4.4    1.3     .3    3.6    3.2    1.9    8.3    3.1    6.6    2.6    3.9    5.5    5.3    3.6    3.5    5.0    5.9
  Services..........................    2.0    3.0    2.9    2.6    1.3    1.8    1.9    2.3    2.0    3.8    3.8    1.8    3.4    3.6    2.8    2.3    3.3    2.6    1.9

Gross private domestic investment...    3.9   11.9    6.1    1.9    5.8   -1.0    -.4    2.7   17.5   12.0   10.1   20.9    4.6    6.8    8.6   -3.7    5.3   16.1    8.4
  Fixed investment..................    3.6    9.7    8.1   -1.4    -.7   -1.4     .8    8.8   14.8    6.9    6.9   15.1    8.4    7.2    7.0    9.5    8.0    3.9   10.1
    Nonresidential..................    1.3    9.4    8.6   -6.1   -2.0   -5.0   -1.1    8.4   11.2    4.4    7.9   13.5   11.8   10.4    5.7    8.8    8.5    4.5   14.2
      Structures....................   -4.2    2.2    2.0  -19.0  -15.5   -5.3   -8.4   13.3    -.1    1.3   -3.5    8.8    1.4    4.7   -2.0    2.7    2.2    3.1   12.5
      Equipment and software........    3.2   11.9   10.9    -.9    3.3   -4.9    1.6    6.7   15.4    5.5   12.0   15.2   15.5   12.4    8.3   10.9   10.6    5.0   14.8
    Residential.....................    8.4   10.3    7.1    9.5    2.0    6.4    4.7    9.6   21.9   11.5    5.2   17.8    2.6    1.6    9.5   10.8    7.3    2.8    3.3
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    1.8    8.4    6.9   10.6    2.9   -3.1   -2.9   -2.1   11.5   19.1    5.0    6.9    5.5    7.1    7.5   10.7    2.5    5.1   14.7
    Goods...........................    1.8    8.9    7.3   14.2    2.2   -9.1    1.5     .0    9.1   17.2    7.5    7.9    8.2    3.7    5.3   16.0    3.2    8.0   18.5
    Services........................    1.7    7.4    6.0    2.7    4.6   11.7  -11.9   -6.6   17.2   23.7    -.4    4.8    -.6   15.5   12.5    -.4    1.0   -1.4    6.3
  Imports...........................    4.6   10.7    6.3   12.5    5.7    9.0   -2.5    3.3    4.1   16.5   12.0   14.5    4.7   11.3    7.4    -.3    2.4   12.1   10.7
    Goods...........................    4.9   11.0    6.9   16.0    6.5    8.1   -2.6    6.3     .9   17.7   12.4   14.7    4.7   13.0    8.2   -1.1    3.5   13.5   11.1
    Services........................    3.0    9.6    3.6   -3.0    1.7   14.0   -2.2  -10.2   21.4   10.7   10.0   13.7    4.6    3.1    3.7    4.4   -3.2    4.8    8.5

Government consumption expenditures
 and gross investment...............    2.8    2.2    1.8    4.8    2.3    4.8    -.3    7.2     .5     .5    3.3    2.3    1.8     .9    1.9    2.5    2.9    -.8    4.8
  Federal...........................    6.9    5.2    2.3   12.5    3.0   10.2     .3   22.1   -2.0    3.1   10.7    3.2    3.6    -.6    2.4    2.4    7.4   -2.6   10.5
    National defense................    8.8    7.0    2.6   11.5    4.1   14.8   -3.6   37.4   -6.5    7.9   13.8     .8    9.0   -3.3    3.0    3.7   10.0   -8.9    9.6
    Nondefense......................    3.4    1.8    1.8   14.1    1.2    2.1    8.0   -2.4    7.2   -5.8    4.9    8.1   -6.4    5.2    1.1    -.2    2.4   11.7   12.2
  State and local...................     .6     .4    1.5    1.0    1.9    2.0    -.6    -.3    2.0    -.9    -.7    1.8     .8    1.8    1.6    2.6     .2     .2    1.6

Addenda:
  Final sales of domestic product...    2.7    3.9    3.8    1.7    1.4     .1    1.9    4.6    6.9    2.8    3.8    2.6    4.6    3.3    3.5    5.6    4.6    -.2    5.9
  Gross domestic purchases..........    3.0    4.7    3.6    2.7    2.8    1.7    1.5    4.2    6.5    3.9    5.2    4.7    3.9    4.1    4.0    2.1    4.0    2.9    5.5
  Final sales to domestic
   purchasers.......................    3.0    4.4    3.9    2.2    1.8    1.6    1.7    5.0    6.1    3.2    4.8    3.8    4.5    4.1    3.7    4.2    4.5    1.1    5.8
  Gross national product (GNP)......    3.0    4.0    3.3    1.8    2.9    1.0    1.5    4.5    7.2    4.5    3.8    2.2    4.0    2.9    3.9    3.2    4.4     .7    6.2
  Disposable personal income........    2.4    3.4    1.3    1.9   -1.6     .2    2.5    4.5    7.2    1.0    3.6    1.2    2.8    9.1   -3.4     .2   -1.4    5.1    1.5

  Current-dollar measures:
    GDP.............................    4.8    7.0    6.4    3.7    3.9    2.4    4.8    4.8    9.3    5.5    8.1    7.5    5.3    6.1    7.0    6.0    7.6    5.2    8.9
    Final sales of domestic product.    4.8    6.6    6.8    3.2    3.0    2.4    5.1    5.7    8.8    4.8    7.5    6.6    6.1    6.2    6.7    8.3    8.1    3.2    9.3
    Gross domestic purchases........    5.3    7.7    6.9    5.2    4.4    3.9    5.7    4.6    8.6    5.6    9.7    9.0    5.9    7.4    7.0    5.5    8.4    6.7    8.3
    Final sales to domestic
     purchasers.....................    5.3    7.4    7.2    4.8    3.6    3.8    5.9    5.4    8.2    4.9    9.2    8.1    6.6    7.4    6.7    7.6    8.9    4.8    8.6
    GNP.............................    5.1    6.8    6.2    3.3    4.4    3.2    4.6    5.7    9.2    6.4    7.7    6.1    5.4    5.7    7.0    5.9    7.8    4.2    9.5
    Disposable personal income......    4.3    6.1    4.2    4.7     .2    1.9    5.6    5.2    9.4    2.3    7.6    5.1    4.3   12.5   -1.3    3.5    2.3    8.1    3.6
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2003   2004   2005  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

    Gross domestic product..........    2.7    4.2    3.5    2.2    2.4     .2    1.7    3.7    7.2    3.6    4.3    3.5    4.0    3.3    3.8    3.3    4.1    1.7    5.6

Percentage points at annual rates:

  Personal consumption expenditures.   2.05   2.71   2.48   1.64   1.57    .97   1.70   2.55   4.13   2.15   3.27   1.33   3.05   3.01   2.44   2.35   2.85    .62   3.53

    Durable goods...................    .57    .51    .37    .31    .98   -.47    .31   1.23   1.64   -.03    .38    .03    .88    .45    .22    .64    .76  -1.47   1.51
      Motor vehicles and parts......    .19    .06   -.03    .02    .89   -.75    .22    .53    .77   -.43   -.02   -.19    .44    .11   -.31    .27    .45  -1.92    .60
      Furniture and household
       equipment....................    .26    .34    .28    .23    .06    .21    .03    .48    .63    .30    .31    .24    .34    .21    .32    .17    .37    .33    .66
      Other.........................    .11    .10    .13    .07    .02    .07    .06    .22    .23    .10    .08   -.02    .10    .14    .20    .20   -.06    .12    .26

    Nondurable goods................    .63    .94    .90    .26    .06    .70    .63    .37   1.65    .61   1.31    .53    .78   1.09   1.07    .74    .73   1.02   1.21
      Food..........................    .25    .48    .49    .18    .00    .20    .38    .05    .69    .20    .88    .27    .32    .63    .50    .42    .61    .50    .65
      Clothing and shoes............    .14    .17    .17    .04   -.05    .31   -.04    .27    .33    .04    .37   -.09    .17    .25    .15    .20    .08    .27    .22
      Gasoline, fuel oil, and other
       energy goods.................    .01    .03    .04    .06    .04   -.04   -.01   -.04    .12    .07   -.04    .03    .02    .07    .21   -.11   -.11    .03   -.01
      Other.........................    .22    .26    .21   -.01    .07    .23    .29    .09    .51    .31    .11    .33    .28    .14    .20    .23    .15    .21    .35

    Services........................    .85   1.27   1.21   1.07    .54    .74    .76    .94    .84   1.57   1.58    .77   1.39   1.47   1.15    .97   1.36   1.08    .81
      Housing.......................    .07    .30    .24   -.03   -.11   -.07    .08    .13    .24    .31    .39    .27    .29    .29    .23    .22    .20    .16    .19
      Household operation...........    .05    .07    .10    .29   -.11    .19    .01   -.06   -.02    .25    .07   -.07    .04    .34    .07   -.02    .17    .00   -.56
        Electricity and gas.........    .02    .03    .06    .25   -.07    .23   -.05   -.13   -.07    .22    .02   -.11   -.05    .37    .02   -.08    .10    .03   -.55
        Other household operation...    .03    .05    .04    .04   -.04   -.04    .07    .07    .05    .03    .05    .05    .10   -.03    .05    .06    .08   -.02   -.01
      Transportation................    .00    .03    .04   -.04   -.07   -.01    .07   -.05    .02    .02    .13   -.01    .00   -.01    .06    .06    .05    .11    .15
      Medical care..................    .49    .49    .56    .67    .59    .59    .45    .42    .31    .59    .37    .56    .64    .54    .53    .50    .66    .58    .59
      Recreation....................    .10    .11    .06    .07    .04    .16    .04    .15    .07    .21    .17    .00    .10    .02    .14    .02    .02    .02    .09
      Other.........................    .14    .26    .21    .12    .20   -.12    .10    .35    .22    .19    .44    .02    .33    .29    .11    .18    .26    .20    .36

  Gross private domestic investment.    .58   1.82   1.00    .30    .87   -.14   -.03    .42   2.53   1.78   1.52   3.10    .75   1.11   1.42   -.63    .87   2.54   1.44

    Fixed investment................    .54   1.47   1.29   -.23   -.12   -.21    .13   1.26   2.15   1.03   1.04   2.22   1.31   1.13   1.12   1.51   1.31    .65   1.68
      Nonresidential................    .13    .92    .88   -.66   -.21   -.52   -.10    .79   1.08    .43    .76   1.29   1.15   1.04    .58    .90    .88    .48   1.47
        Structures..................   -.11    .06    .05   -.58   -.44   -.14   -.22    .32    .00    .03   -.09    .22    .04    .12   -.05    .07    .06    .09    .34
        Equipment and software......    .24    .86    .82   -.09    .23   -.38    .12    .47   1.09    .40    .85   1.07   1.12    .92    .64    .83    .82    .39   1.13
          Information processing
           equipment and software...    .19    .49    .48    .06    .23   -.38    .21    .20    .79    .52    .61    .38    .31    .34    .72    .53    .42    .32    .74
            Computers and peripheral
             equipment..............    .09    .19    .24   -.06    .16   -.04    .07    .10    .21    .17    .20    .18    .16    .27    .31    .23    .11    .28    .14
            Software................    .06    .11    .17    .15    .12   -.17    .04    .04    .29    .15    .08    .05    .10    .09    .22    .29    .14    .09    .14
            Other...................    .05    .19    .08   -.03   -.05   -.17    .10    .05    .29    .20    .33    .16    .05   -.02    .18    .01    .17   -.06    .46
          Industrial equipment......    .00    .04    .09   -.12    .08    .01    .15   -.12   -.04   -.14    .19   -.05    .30    .06    .23   -.27    .20    .16   -.04
          Transportation equipment..   -.03    .15    .17   -.16   -.07   -.02   -.25    .36    .01   -.16   -.04    .56    .23    .39   -.16    .33    .18   -.19    .38
          Other equipment...........    .08    .18    .09    .14    .00    .02    .01    .04    .33    .18    .09    .18    .28    .13   -.14    .23    .02    .10    .05
      Residential...................    .41    .55    .41    .43    .09    .30    .23    .47   1.07    .59    .28    .93    .15    .09    .54    .62    .43    .17    .21

    Change in private inventories...    .05    .35   -.29    .53    .98    .08   -.16   -.84    .38    .75    .48    .87   -.56   -.03    .29  -2.14   -.43   1.89   -.24
      Farm..........................    .03    .03   -.07   -.39    .31    .03    .17   -.21   -.07    .19   -.20    .45   -.01   -.28   -.11   -.09   -.02    .02   -.02
      Nonfarm.......................    .02    .32   -.22    .92    .67    .04   -.33   -.63    .45    .57    .68    .42   -.55    .25    .40  -2.05   -.42   1.87   -.23

  Net exports of goods and services.   -.46   -.73   -.29   -.62   -.49  -1.52    .08   -.66    .48   -.47  -1.16  -1.37   -.17   -.98   -.40   1.11   -.12  -1.36   -.24

    Exports.........................    .17    .80    .70    .96    .27   -.31   -.29   -.20   1.04   1.69    .49    .67    .53    .70    .74   1.07    .26    .52   1.47
      Goods.........................    .12    .59    .51    .88    .14   -.64    .09    .00    .58   1.05    .50    .53    .55    .25    .37   1.08    .23    .56   1.27
      Services......................    .05    .22    .18    .08    .13    .33   -.38   -.20    .46    .64   -.01    .14   -.02    .44    .37   -.01    .03   -.05    .19

    Imports.........................   -.63  -1.53   -.98  -1.58   -.76  -1.21    .37   -.46   -.56  -2.16  -1.65  -2.03   -.70  -1.68  -1.14    .04   -.38  -1.88  -1.70
      Goods.........................   -.56  -1.30   -.89  -1.65   -.72   -.90    .32   -.71   -.10  -1.91  -1.41  -1.71   -.59  -1.60  -1.05    .15   -.46  -1.76  -1.49
      Services......................   -.07   -.23   -.09    .07   -.04   -.31    .05    .26   -.46   -.25   -.23   -.32   -.11   -.08   -.10   -.11    .09   -.12   -.21

  Government consumption expenditures
   and gross investment.............    .53    .41    .34    .88    .43    .89   -.05   1.37    .11    .10    .62    .43    .35    .17    .35    .47    .54   -.15    .91

    Federal.........................    .45    .36    .16    .76    .20    .64    .03   1.40   -.14    .21    .71    .22    .25   -.04    .17    .17    .52   -.18    .72
      National defense..............    .37    .32    .12    .45    .17    .59   -.15   1.46   -.31    .35    .60    .04    .41   -.16    .14    .17    .46   -.44    .44
        Consumption expenditures....    .33    .26    .11    .29    .07    .67   -.19   1.35   -.34    .32    .46    .01    .39   -.26    .34    .04    .37   -.49    .40
        Gross investment............    .04    .06    .01    .16    .10   -.08    .04    .11    .03    .03    .14    .02    .02    .10   -.20    .13    .09    .05    .04
      Nondefense....................    .08    .04    .04    .31    .03    .05    .18   -.06    .17   -.14    .11    .19   -.16    .12    .03   -.01    .06    .26    .28
       Consumption expenditures.....    .08    .04    .02    .21    .11    .07    .18   -.19    .29   -.10    .11    .04   -.04    .08    .02   -.09    .08    .14    .23
       Gross investment.............    .00    .00    .02    .10   -.08   -.02    .00    .14   -.12   -.04    .00    .15   -.12    .04    .01    .08   -.02    .12    .05

    State and local.................    .08    .05    .17    .12    .23    .25   -.08   -.04    .25   -.11   -.09    .21    .10    .21    .19    .31    .03    .03    .19
        Consumption expenditures....    .06    .04    .11    .24    .17    .15   -.02   -.01   -.01    .02    .00    .07    .14    .16    .08    .08    .17    .09    .12
        Gross investment............    .02    .01    .06   -.12    .06    .10   -.07   -.03    .26   -.13   -.08    .14   -.04    .05    .11    .23   -.14   -.06    .07

Addenda:
    Goods...........................   1.10   2.06   1.49    .49   1.69  -1.74   1.38    .75   5.19    .96   2.29   1.53   2.10   1.26   1.41   1.58   1.70    .73   3.59
    Services........................   1.30   1.59   1.54   1.95    .98   1.65    .41   2.15    .78   2.20   1.90    .71   1.75   1.82   1.86    .88   2.09    .65   1.54
    Structures......................    .31    .57    .49   -.26   -.29    .29   -.08    .76   1.28    .41    .06   1.26    .13    .23    .53    .85    .35    .28    .50
    Motor vehicle output............    .14    .16    .12    .20    .40    .01    .00   -.09    .72   -.13    .49   -.26    .11    .29    .15   -.01    .56   -.64   -.21
    Final sales of computers........    .15    .15    .28    .01    .20    .11    .05    .10    .45    .09    .08    .08    .10    .36    .37    .32    .16    .33    .05
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                            --------------------------------------------          --------------------------------------------  -------------------------
                                       2005     I 05    II 05   III 05    IV 05     I 06r    2005     I 05    II 05   III 05    IV 05     I 06r    2005    IV 05     I 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 12,487.1 12,198.8 12,378.0 12,605.7 12,766.1 13,042.3 11,134.8 10,999.3 11,089.2 11,202.3 11,248.3 11,403.6    379.1     46.0    155.3

Personal consumption expenditures.  8,745.7  8,535.8  8,677.0  8,844.0  8,926.2  9,081.7  7,856.9  7,764.9  7,829.5  7,907.9  7,925.4  8,023.6    268.3     17.5     98.2

  Durable goods...................  1,026.5  1,017.3  1,035.5  1,050.9  1,002.1  1,047.6  1,138.4  1,122.3  1,143.9  1,169.7  1,117.7  1,170.6     48.5    -52.0     52.9
    Motor vehicles and parts......    446.8    449.6    458.5    468.7    410.5    432.3    452.8    455.0    463.3    477.3    415.5    434.4     -4.2    -61.8     18.9
    Furniture and household
     equipment....................    373.2    366.9    370.0    374.9    381.1    397.7    485.0    469.2    475.9    490.5    504.4    531.8     42.1     13.9     27.4
    Other.........................    206.4    200.8    207.0    207.2    210.5    217.6    211.3    206.5    212.9    211.0    214.7    223.0     15.5      3.7      8.3

  Nondurable goods................  2,564.4  2,476.6  2,533.7  2,604.9  2,642.5  2,687.7  2,297.9  2,265.6  2,285.9  2,305.8  2,334.2  2,367.8     97.5     28.4     33.6
    Food..........................  1,218.6  1,184.2  1,207.1  1,229.9  1,253.3  1,282.4  1,081.1  1,060.9  1,072.2  1,088.7  1,102.8  1,120.8     52.0     14.1     18.0
    Clothing and shoes............    345.4    340.5    344.9    343.9    352.3    358.4    376.5    367.9    374.4    377.2    386.7    394.3     21.5      9.5      7.6
    Gasoline, fuel oil, and other
     energy goods.................    310.6    275.2    296.4    338.3    332.6    327.4    204.9    207.7    205.2    203.0    203.5    203.4      3.5       .5      -.1
    Other.........................    689.8    676.8    685.3    692.8    704.2    719.5    639.7    631.2    637.7    641.9    648.0    658.0     23.0      6.1     10.0

  Services........................  5,154.9  5,041.8  5,107.8  5,188.3  5,281.6  5,346.4  4,436.4  4,392.0  4,417.6  4,453.5  4,482.6  4,504.2    125.5     29.1     21.6
    Housing.......................  1,281.5  1,260.6  1,275.3  1,288.2  1,301.8  1,318.9  1,103.7  1,095.6  1,101.4  1,106.6  1,111.0  1,116.2     25.3      4.4      5.2
    Household operation...........    481.8    465.3    471.4    484.4    506.1    495.2    416.3    414.3    413.8    418.5    418.5    403.8     10.7       .0    -14.7
      Electricity and gas.........    201.7    189.5    192.4    202.1    222.9    209.8    155.0    155.2    153.2    155.5    156.1    143.8      5.8       .6    -12.3
      Other household operation...    280.1    275.8    279.0    282.3    283.2    285.4    261.0    258.8    260.5    262.7    262.0    261.8      4.7      -.7      -.2
    Transportation................    321.2    312.3    318.5    324.1    329.9    337.1    287.3    284.6    286.3    287.6    290.6    294.7      3.9      3.0      4.1
    Medical care..................  1,510.0  1,470.5  1,492.6  1,522.0  1,554.7  1,578.9  1,291.6  1,269.1  1,282.3  1,299.6  1,315.2  1,331.0     58.1     15.6     15.8
    Recreation....................    355.2    350.3    353.1    356.6    360.7    365.2    308.6    307.7    308.3    308.9    309.4    311.7      6.2       .5      2.3
    Other.........................  1,205.3  1,182.8  1,196.8  1,213.0  1,228.4  1,251.2  1,027.8  1,019.5  1,024.3  1,031.1  1,036.5  1,046.1     21.1      5.4      9.6

Gross private domestic investment.  2,105.0  2,058.5  2,054.4  2,099.5  2,207.5  2,270.2  1,919.8  1,902.9  1,885.0  1,909.4  1,981.9  2,022.3    110.0     72.5     40.4

  Fixed investment................  2,086.1  1,998.7  2,058.5  2,119.2  2,168.0  2,239.8  1,897.1  1,842.2  1,884.7  1,921.5  1,940.0  1,987.2    142.0     18.5     47.2
    Nonresidential................  1,329.8  1,280.1  1,313.5  1,348.9  1,376.7  1,435.3  1,289.0  1,252.2  1,279.0  1,305.2  1,319.7  1,364.2    102.3     14.5     44.5
      Structures..................    335.1    315.9    325.6    340.2    359.0    381.3    253.4    251.0    252.7    254.1    256.0    263.7      5.0      1.9      7.7
      Equipment and software......    994.7    964.3    987.9  1,008.7  1,017.7  1,054.0  1,050.8  1,014.2  1,040.9  1,067.5  1,080.6  1,118.5    103.2     13.1     37.9
        Information processing
         equipment and software...    488.9    474.6    486.6    494.5    500.1    519.8    590.6    565.1    584.6    600.2    612.4    641.2     68.2     12.2     28.8
          Computers and peripheral
           equipment..............    105.7    102.7    105.6    105.0    109.6    109.9    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    197.8    188.3    197.3    201.3    204.3    209.7    209.9    199.8    209.1    213.7    216.9    221.6     21.1      3.2      4.7
          Other...................    185.4    183.6    183.6    188.2    186.2    200.3    198.7    196.3    196.5    202.1    200.1    215.7      9.8     -2.0     15.6
        Industrial equipment......    161.3    161.3    154.9    161.3    167.5    167.1    149.1    150.9    143.2    148.8    153.6    152.2      9.7      4.8     -1.4
        Transportation equipment..    171.5    163.8    172.8    177.9    171.6    185.5    157.0    148.8    158.1    163.3    157.9    169.0     18.3     -5.4     11.1
        Other equipment...........    172.9    164.6    173.7    175.0    178.5    181.5    159.9    153.9    160.6    161.1    163.9    165.3      9.9      2.8      1.4
    Residential...................    756.3    718.5    745.0    770.3    791.4    804.5    601.9    584.1    599.3    610.0    614.2    619.2     40.1      4.2      5.0

  Change in private inventories...     18.9     59.9     -4.2    -19.7     39.4     30.4     20.3     58.2     -1.7    -13.3     37.9     29.5    -31.7     51.2     -8.4
    Farm..........................     -8.4     -6.5     -8.5     -9.5     -8.9     -9.6     -3.7     -2.3     -4.2     -4.5     -3.7     -4.4     -6.0       .8      -.7
    Nonfarm.......................     27.2     66.4      4.3    -10.2     48.3     40.0     25.0     61.8      3.4     -8.1     43.0     35.1    -24.9     51.1     -7.9

Net exports of goods and services.   -726.5   -697.5   -691.0   -730.4   -787.1   -784.1   -633.1   -645.4   -614.2   -617.5   -655.2   -660.9    -31.8    -37.7     -5.7

  Exports.........................  1,301.2  1,253.2  1,297.1  1,314.6  1,339.8  1,394.8  1,195.3  1,165.3  1,195.4  1,202.7  1,217.6  1,260.2     77.4     14.9     42.6
    Goods.........................    905.6    865.4    904.7    914.8    937.4    984.5    841.1    810.7    841.3    847.9    864.4    901.8     57.5     16.5     37.4
    Services......................    395.6    387.7    392.5    399.9    402.4    410.3    354.1    354.3    353.9    354.8    353.5    359.0     20.0     -1.3      5.5

  Imports.........................  2,027.7  1,950.6  1,988.1  2,045.1  2,126.9  2,178.9  1,828.3  1,810.7  1,809.6  1,820.2  1,872.9  1,921.1    109.1     52.7     48.2
    Goods.........................  1,700.7  1,627.6  1,661.8  1,718.6  1,794.8  1,837.2  1,553.0  1,537.3  1,532.9  1,546.1  1,595.8  1,638.5    100.3     49.7     42.7
    Services......................    327.0    323.0    326.3    326.4    332.1    341.6    276.7    274.8    277.7    275.5    278.7    284.4      9.6      3.2      5.7

Government consumption expenditures
 and gross investment.............  2,362.9  2,302.0  2,337.6  2,392.7  2,419.6  2,474.5  1,987.1  1,971.9  1,984.1  1,998.1  1,994.1  2,017.5     34.8     -4.0     23.4

  Federal.........................    877.7    860.2    869.8    892.2    888.5    924.4    740.5    731.8    736.1    749.5    744.6    763.4     16.8     -4.9     18.8
    National defense..............    587.1    575.3    582.5    601.7    589.1    610.8    493.6    487.3    491.7    503.6    492.0    503.3     12.3    -11.6     11.3
      Consumption expenditures....    515.9    508.9    512.3    528.6    514.0    534.2    424.1    421.9    422.9    432.2    419.6    429.7     10.8    -12.6     10.1
      Gross investment............     71.2     66.4     70.2     73.1     75.1     76.7     70.0     65.3     69.2     72.0     73.5     74.7      1.5      1.5      1.2
    Nondefense....................    290.6    285.0    287.3    290.5    299.4    313.6    246.6    244.3    244.2    245.6    252.5    259.9      4.4      6.9      7.4
      Consumption expenditures....    253.7    250.7    250.5    254.3    259.1    271.6    210.6    210.4    208.2    210.1    213.7    219.6      2.0      3.6      5.9
      Gross investment............     36.9     34.3     36.8     36.3     40.3     42.0     36.3     33.8     36.3     35.6     39.4     40.9      2.9      3.8      1.5

  State and local.................  1,485.2  1,441.7  1,467.7  1,500.4  1,531.1  1,550.1  1,246.3  1,239.8  1,247.8  1,248.5  1,249.3  1,254.2     17.9       .8      4.9
      Consumption expenditures....  1,193.0  1,159.0  1,175.7  1,205.7  1,231.7  1,243.4    991.1    986.8    988.8    993.3    995.6    998.6     11.6      2.3      3.0
      Gross investment............    292.2    282.7    292.0    294.7    299.4    306.7    255.4    253.2    259.4    255.4    253.7    255.7      6.5     -1.7      2.0

Residual..........................    .....    .....    .....    .....    .....    .....    -63.6    -48.0    -60.1    -69.6    -77.1    -99.5    .....    .....    .....

Addenda:
  Final sales of domestic product. 12,468.3 12,138.9 12,382.1 12,625.4 12,726.7 13,011.9 11,112.8 10,940.3 11,089.2 11,214.4 11,207.5 11,369.7    410.4     -6.9    162.2
  Gross domestic purchases........ 13,213.7 12,896.3 13,069.0 13,336.1 13,553.3 13,826.3 11,759.1 11,635.4 11,694.8 11,811.2 11,895.0 12,056.6    410.4     83.8    161.6
  Final sales to domestic
   purchasers..................... 13,194.8 12,836.4 13,073.1 13,355.8 13,513.8 13,796.0 11,737.0 11,576.2 11,694.6 11,823.0 11,854.1 12,022.5    441.7     31.1    168.4

  Gross domestic product.......... 12,487.1 12,198.8 12,378.0 12,605.7 12,766.1 13,042.3 11,134.8 10,999.3 11,089.2 11,202.3 11,248.3 11,403.6    379.1     46.0    155.3
  Plus: Income receipts from
   the rest of the world..........    507.6    462.3    489.4    520.8    558.0    596.6    455.5    420.4    441.7    465.5    494.4    525.1     71.8     28.9     30.7
  Less: Income payments to
   the rest of the world..........    474.0    422.9    453.9    476.6    542.6    564.4    423.7    383.3    408.2    424.4    478.9    494.7     90.2     54.5     15.8
  Equals: Gross national product.. 12,520.8 12,238.2 12,413.5 12,650.0 12,781.6 13,074.6 11,166.4 11,036.3 11,122.5 11,243.2 11,263.5 11,433.6    360.7     20.3    170.1

  Net domestic product............ 10,913.1 10,750.4 10,920.7 10,741.9 11,239.3 11,520.1  9,640.1  9,608.3  9,689.7  9,456.1  9,806.5  9,975.5    274.6    350.4    169.0
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2003   2004   2005  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.0    2.6    2.8    1.5    1.6    2.2    3.1    1.1    1.8    1.9    3.6    3.9    1.5    2.7    3.1    2.6    3.3    3.5    3.1

Personal consumption expenditures...    1.9    2.6    2.8    2.8    1.8    1.7    3.0     .6    2.0    1.3    3.9    3.8    1.5    3.1    2.3    3.3    3.7    2.9    2.0
  Durable goods.....................   -3.5   -1.9    -.5   -1.9   -1.8   -2.7   -4.3   -4.3   -4.4   -4.1     .1    -.1   -2.4     .6     .9    -.5   -3.0    -.8    -.8
  Nondurable goods..................    2.0    3.3    3.7    5.4     .9    1.2    5.6   -2.4    3.1     .6    6.0    6.6     .1    4.5    1.3    5.7    7.9     .8    1.1
  Services..........................    3.0    3.2    3.1    2.6    3.0    2.8    3.4    3.2    2.8    2.8    3.6    3.3    2.9    3.0    3.0    2.9    3.1    4.6    3.0

Gross private domestic investment...    1.6    3.1    3.1     .5     .2    2.9    2.9    -.5    1.7    3.7    3.4    4.6    3.2    2.3    2.6    2.7    3.7    5.2    3.2
  Fixed investment..................    1.7    3.2    3.1     .5     .2    3.0    3.1    -.5    1.7    3.9    3.5    4.6    3.0    2.2    2.6    2.7    4.0    5.4    3.5
    Nonresidential..................     .3    1.3    2.1    -.2    -.4    1.1     .1   -1.0    1.2    1.9    1.2    1.8     .9    1.1    3.1    1.9    2.5    3.8    3.5
      Structures....................    3.5    5.5   10.1    5.2    4.3    5.1    4.0     .3    2.9    4.6    7.1    6.8    6.6    5.6   10.3    9.9   16.5   20.3   13.2
      Equipment and software........    -.9    -.1    -.4   -2.1   -2.0    -.3   -1.2   -1.4     .6    1.0    -.8     .2    -.9    -.4     .9    -.7   -1.8   -1.3     .2
    Residential.....................    4.8    6.7    4.8    2.2    1.5    7.0    9.3     .3    2.7    7.6    8.0    9.7    6.9    4.2    1.6    4.3    6.5    8.3    3.4
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    2.1    3.6    3.7    2.8    3.0     .6    4.1    1.0     .9    2.9    5.9    4.8    1.7    4.3    4.6    3.7    2.9    2.7    2.4
    Goods...........................    2.0    3.7    3.1    2.2    3.3     .5    3.6    1.6    -.7    4.1    6.5    5.3    1.0    3.8    4.5    2.9    1.3    2.1    2.7
    Services........................    2.5    3.1    5.0    4.3    2.1     .7    5.2    -.3    4.6     .1    4.4    3.7    3.2    5.6    4.7    5.4    6.7    4.0    1.7
  Imports...........................    3.4    5.0    6.1   10.3    3.5     .6   11.2   -4.4    2.6    1.1    9.6    6.6    5.7    6.8    2.9    8.2    9.4    4.4    -.5
    Goods...........................    2.9    5.0    6.4   10.8    2.6     .4   11.9   -6.7    2.5     .5   10.1    7.9    5.4    6.9    1.9    9.9   10.6    4.8   -1.2
    Services........................    5.8    4.9    4.6    7.6    8.1    1.4    8.0    7.5    3.2    4.2    7.5     .3    7.4    6.5    7.9    -.2    3.4    2.2    3.3

Government consumption expenditures
 and gross investment...............    3.7    3.7    4.8    2.9    2.6    3.6    8.9     .0    2.5    1.4    6.2    5.0    3.2    4.1    5.7    3.7    6.7    5.4    4.4
  Federal...........................    3.9    4.2    3.6     .5    1.0    4.6    9.9    1.3    1.2    1.2    9.7    4.9    2.2    2.6    7.0    2.1    3.0     .9    6.1
    National defense................    4.4    4.0    3.6    1.3    2.4    6.9    9.3    1.1    1.3    1.5    7.8    5.6    2.8    2.7    6.6    1.4    3.5     .9    5.5
    Nondefense......................    3.0    4.6    3.8    -.8   -1.4     .5   11.0    1.6    1.0     .7   13.7    3.6    1.2    2.5    7.9    3.6    2.1     .9    7.3
  State and local...................    3.7    3.4    5.4    4.2    3.4    3.0    8.4    -.7    3.2    1.6    4.2    5.0    3.7    4.9    4.9    4.7    9.0    8.2    3.4

Addenda:
  Final sales of domestic product...    2.0    2.6    2.8    1.5    1.6    2.3    3.1    1.1    1.8    1.9    3.6    3.8    1.4    2.7    3.1    2.6    3.3    3.5    3.2
  Gross domestic purchases..........    2.2    2.9    3.2    2.5    1.7    2.2    4.1     .4    2.0    1.7    4.2    4.1    2.0    3.2    2.9    3.3    4.2    3.7    2.6
  Final sales to domestic
   purchasers.......................    2.2    2.9    3.2    2.5    1.7    2.2    4.1     .4    2.0    1.7    4.2    4.1    2.0    3.2    2.9    3.3    4.3    3.7    2.7
  Gross national product (GNP)......    2.0    2.6    2.8    1.5    1.6    2.2    3.1    1.1    1.8    1.9    3.6    3.8    1.5    2.7    3.1    2.6    3.3    3.5    3.1

  Implicit price deflators:
    GDP.............................    2.0    2.6    2.8    1.4    1.5    2.2    3.1    1.1    1.9    1.8    3.7    3.9    1.3    2.7    3.0    2.6    3.3    3.5    3.1
    Gross domestic purchases........    2.2    2.9    3.2    2.4    1.6    2.2    4.1     .4    2.1    1.6    4.3    4.1    1.9    3.2    2.9    3.3    4.2    3.7    2.6
    GNP.............................    2.0    2.6    2.8    1.5    1.5    2.3    3.1    1.1    1.9    1.8    3.7    3.8    1.3    2.7    3.0    2.6    3.3    3.5    3.1
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2003       2004       2005       I 05      II 05     III 05      IV 05       I 06r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    105.130    109.562    113.424    112.044    112.959    114.112    114.580    116.162

Personal consumption expenditures..........    108.416    112.601    116.582    115.217    116.176    117.338    117.598    119.056
  Durable goods............................    119.134    126.245    131.864    129.999    132.499    135.492    129.468    135.597
  Nondurable goods.........................    107.938    113.000    118.008    116.351    117.392    118.413    119.875    121.598
  Services.................................    106.493    109.725    112.919    111.789    112.440    113.353    114.094    114.644

Gross private domestic investment..........     93.195    104.286    110.621    109.645    108.615    110.023    114.201    116.526
  Fixed investment.........................     95.297    104.534    112.990    109.722    112.252    114.443    115.544    118.360
    Nonresidential.........................     88.063     96.314    104.622    101.633    103.806    105.935    107.116    110.722
      Structures...........................     77.621     79.314     80.925     80.145     80.680     81.123     81.753     84.197
      Equipment and software...............     92.154    103.126    114.355    110.376    113.274    116.170    117.600    121.718
    Residential............................    113.989    125.714    134.678    130.695    134.100    136.484    137.434    138.562
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     94.064    101.970    109.028    106.295    109.037    109.710    111.070    114.953

Imports of goods and services..............    105.205    116.495    123.892    122.698    122.620    123.340    126.908    130.175

Government consumption expenditures and
 gross investment..........................    111.009    113.398    115.420    114.537    115.248    116.063    115.830    117.190
  Federal..................................    118.839    125.038    127.945    126.446    127.188    129.491    128.657    131.896
  State and local..........................    107.042    107.487    109.058    108.489    109.183    109.246    109.313    109.742

Addenda:
  Final sales of domestic product..........    105.564    109.650    113.856    112.088    113.613    114.896    114.825    116.487
  Gross domestic purchases.................    106.285    111.301    115.325    114.112    114.695    115.836    116.658    118.243
  Final sales to domestic purchasers.......    106.708    111.394    115.750    114.164    115.332    116.598    116.905    118.566
  Gross national product...................    105.370    109.637    113.296    111.977    112.851    114.076    114.282    116.008
-----------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2003       2004       2005       I 05      II 05     III 05      IV 05       I 06r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    106.310    109.102    112.176    110.950    111.655    112.567    113.532    114.409

Personal consumption expenditures
 (PCE).....................................    105.520    108.246    111.313    109.936    110.832    111.846    112.637    113.195
  Durable goods............................     92.372     90.631     90.168     90.648     90.527     89.839     89.659     89.490
  Nondurable goods.........................    104.151    107.634    111.596    109.327    110.854    112.985    113.218    113.522
  Services.................................    109.246    112.695    116.195    114.803    115.633    116.508    117.834    118.708

Gross private domestic investment..........    103.311    106.555    109.836    108.427    109.164    110.169    111.586    112.470
  Fixed investment.........................    103.432    106.697    109.970    108.522    109.254    110.318    111.787    112.740
    Nonresidential.........................     99.764    101.025    103.161    102.244    102.715    103.358    104.327    105.226
      Structures...........................    113.889    120.124    132.228    125.876    128.886    133.914    140.234    144.640
      Equipment and software...............     95.133     95.022     94.661     95.067     94.910     94.491     94.174     94.231
    Residential............................    112.379    119.935    125.661    123.062    124.359    126.335    128.889    129.967
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............    101.398    104.999    108.867    107.559    108.534    109.323    110.052    110.701

Imports of goods and services..............     99.610    104.571    110.937    107.783    109.925    112.413    113.626    113.480

Government consumption expenditures and
 gross investment..........................    109.460    113.505    118.915    116.747    117.820    119.751    121.343    122.656
  Federal..................................    109.740    114.354    118.525    117.550    118.168    119.056    119.327    121.103
  State and local..........................    109.303    113.022    119.170    116.291    117.635    120.186    122.568    123.603

Addenda:
  PCE excluding food and energy............    105.082    107.156    109.311    108.617    109.083    109.450    110.095    110.653
  Market-based PCE\1\......................    105.009    107.422    110.336    108.948    109.860    110.917    111.619    112.099
  Market-based PCE excluding food
   and energy\1\...........................    104.348    105.898    107.678    107.106    107.506    107.797    108.302    108.761
  Final sales of domestic product..........    106.330    109.124    112.196    110.963    111.667    112.589    113.563    114.452
  Gross domestic purchases.................    105.863    108.899    112.401    110.883    111.785    112.953    113.981    114.721
  Final sales to domestic purchasers.......    105.883    108.921    112.421    110.898    111.798    112.976    114.013    114.763
  Gross national product...................    106.304    109.094    112.158    110.933    111.638    112.550    113.514    114.389

  Implicit price deflators:
    Gross domestic product.................    106.305    109.099    112.145    110.905    111.622    112.527    113.494    114.370
    Final sales of domestic product........    106.330    109.124    112.197    110.956    111.659    112.582    113.556    114.444
    Gross domestic purchases...............    105.858    108.896    112.370    110.837    111.750    112.911    113.941    114.679
    Final sales to domestic purchasers.....    105.883    108.920    112.421    110.886    111.787    112.965    114.001    114.751
    Gross national product.................    106.299    109.091    112.129    110.890    111.607    112.512    113.477    114.352
-----------------------------------------------------------------------------------------------------------------------------------
  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
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           1990    1991    1992    1993    1994    1995    1996    1997    1998    1999    2000    2001    2002    2003    2004    2005
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     1.9     -.2     3.3     2.7     4.0     2.5     3.7     4.5     4.2     4.5     3.7      .8     1.6     2.7     4.2     3.5

Personal consumption expenditures......     2.0      .2     3.3     3.3     3.7     2.7     3.4     3.8     5.0     5.1     4.7     2.5     2.7     2.9     3.9     3.5
  Durable goods........................     -.3    -5.6     5.9     7.8     8.4     4.4     7.8     8.6    11.3    11.7     7.3     4.3     7.1     6.6     6.0     4.5
  Nondurable goods.....................     1.6     -.2     2.0     2.7     3.5     2.2     2.6     2.7     4.0     4.6     3.8     2.0     2.5     3.2     4.7     4.4
  Services.............................     2.9     1.7     3.5     2.8     2.9     2.6     2.9     3.3     4.2     4.0     4.5     2.4     1.9     2.0     3.0     2.9

Gross private domestic investment......    -3.4    -8.1     8.1     8.9    13.6     3.1     8.9    12.4     9.8     7.8     5.7    -7.9    -2.6     3.9    11.9     6.1
  Fixed investment.....................    -2.1    -6.5     5.9     8.6     9.3     6.5     9.0     9.2    10.2     8.3     6.5    -3.0    -5.2     3.6     9.7     8.1
    Nonresidential.....................      .5    -5.4     3.2     8.7     9.2    10.5     9.3    12.1    11.1     9.2     8.7    -4.2    -9.2     1.3     9.4     8.6
      Structures.......................     1.5   -11.1    -6.0     -.7     1.8     6.4     5.6     7.3     5.1     -.4     6.8    -2.3   -17.1    -4.2     2.2     2.0
      Equipment and software...........      .0    -2.6     7.3    12.5    11.9    12.0    10.6    13.8    13.3    12.7     9.4    -4.9    -6.2     3.2    11.9    10.9
    Residential........................    -8.6    -9.6    13.8     8.2     9.6    -3.2     8.0     1.9     7.6     6.0      .8      .4     4.8     8.4    10.3     7.1
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................     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     1.8     8.4     6.9
    Goods..............................     8.4     6.9     7.5     3.3     9.7    11.7     8.8    14.3     2.2     3.8    11.2    -6.1    -4.0     1.8     8.9     7.3
    Services...........................    10.5     6.0     5.5     3.2     6.3     6.3     7.2     5.9     2.9     5.6     2.9    -3.7     1.9     1.7     7.4     6.0
  Imports..............................     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     4.6    10.7     6.3
    Goods..............................     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     4.9    11.0     6.9
    Services...........................     6.5    -2.6    -2.6     2.9     5.7     3.3     5.5     9.4    11.4     6.9    11.1     -.3     2.1     3.0     9.6     3.6

Government consumption expenditures
 and gross investment..................     3.2     1.1      .5     -.9      .0      .5     1.0     1.9     1.9     3.9     2.1     3.4     4.4     2.8     2.2     1.8
  Federal..............................     2.0     -.2    -1.7    -4.2    -3.7    -2.7    -1.2    -1.0    -1.1     2.2      .9     3.9     7.0     6.9     5.2     2.3
    National defense...................      .0    -1.1    -5.0    -5.6    -4.9    -3.8    -1.4    -2.8    -2.1     1.9     -.5     3.9     7.4     8.8     7.0     2.6
    Nondefense.........................     8.3     2.4     6.9     -.7    -1.2     -.4     -.7     2.6      .7     2.8     3.5     3.9     6.3     3.4     1.8     1.8
  State and local......................     4.1     2.1     2.2     1.4     2.6     2.6     2.3     3.6     3.6     4.7     2.7     3.2     3.1      .6      .4     1.5

Addenda:
  Final sales of domestic product......     2.1      .1     3.0     2.6     3.4     3.0     3.7     4.0     4.2     4.5     3.8     1.6     1.2     2.7     3.9     3.8
  Gross domestic purchases.............     1.4     -.8     3.3     3.2     4.4     2.4     3.8     4.8     5.3     5.3     4.4      .9     2.2     3.0     4.7     3.6
  Final sales to domestic purchasers...     1.6     -.6     3.1     3.2     3.8     2.8     3.8     4.3     5.3     5.4     4.5     1.8     1.8     3.0     4.4     3.9
  Gross national product...............     2.0     -.3     3.3     2.7     3.9     2.6     3.7     4.4     4.0     4.6     3.7      .8     1.5     3.0     4.0     3.3
  Real disposable personal income......     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     2.4     3.4     1.3

  Price indexes:
    Gross domestic purchases...........     4.1     3.3     2.3     2.2     2.1     2.1     1.8     1.4      .6     1.6     2.5     2.0     1.6     2.2     2.9     3.2
    Gross domestic purchases excluding
     food and energy...................     3.7     3.5     2.6     2.3     2.2     2.2     1.5     1.3     1.0     1.4     1.9     1.9     1.9     1.8     2.4     2.5
    GDP................................     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     2.0     2.6     2.8
    GDP excluding food and energy......     3.7     3.6     2.5     2.4     2.2     2.1     1.7     1.7     1.2     1.5     2.0     2.1     2.1     1.8     2.5     2.7
    Personal consumption expenditures..     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     2.6     2.8
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                          II 02  III 02   IV 02    I 03   II 03  III 03   IV 03    I 04   II 04  III 04   IV 04    I 05   II 05  III 05   IV 05    I 06r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     1.3     2.2     1.9     1.6     2.0     3.2     4.0     4.7     4.6     3.8     3.8     3.6     3.6     3.6     3.2     3.7

Personal consumption expenditures
 (PCE).................................     3.1     3.2     1.9     2.1     2.4     3.3     3.8     4.3     3.9     3.5     3.8     3.5     3.9     3.8     2.9     3.3
  Durable goods........................     8.9    11.0     1.2     3.2     6.0     7.9     9.2     9.4     5.8     3.7     5.2     4.7     6.7     6.3      .2     4.3
  Nondurable goods.....................     3.0     2.4     2.1     2.1     2.2     4.2     4.1     4.9     5.1     4.0     4.6     4.3     4.6     4.5     4.4     4.5
  Services.............................     2.0     2.0     1.9     1.9     1.8     2.0     2.5     3.0     2.9     3.2     3.1     2.9     3.0     3.0     2.8     2.6

Gross private domestic investment......    -5.4    -1.4     4.9     1.5     1.7     4.4     7.7    10.5    15.1    11.8    10.4    10.1     4.0     4.1     6.3     6.3
  Fixed investment.....................    -5.8    -4.9    -2.5     -.7     1.8     5.6     7.7     9.3    10.9     9.3     9.4     9.4     8.0     7.9     7.1     7.9
    Nonresidential.....................    -9.8    -8.7    -6.5    -3.5      .0     3.2     5.6     7.9     9.2     9.4    10.9    10.3     9.2     8.3     6.9     8.9
      Structures.......................   -17.4   -22.0   -14.9   -12.2    -4.5     -.5     1.2     2.6     1.5     1.9     2.7     3.1     1.7     1.9     1.5     5.1
      Equipment and software...........    -6.8    -3.2    -3.4     -.3     1.6     4.4     7.2     9.8    11.9    12.0    13.8    12.8    11.7    10.5     8.7    10.3
    Residential........................     4.3     4.4     7.0     5.6     5.6    10.5    11.8    11.9    13.9     9.1     6.6     7.7     6.1     7.2     7.6     6.0
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................    -4.0     1.6     3.8     1.7    -1.3      .7     6.0     8.1    10.5     9.0     6.1     6.7     7.7     6.9     6.4     8.1
    Goods..............................    -4.9     1.1     1.1     1.9    -1.5      .2     6.7     8.3    10.4    10.1     6.8     6.2     8.2     6.9     8.0    11.2
    Services...........................    -2.0     2.8    10.2     1.4    -1.0     1.9     4.5     7.8    10.9     6.4     4.6     7.9     6.5     6.9     2.8     1.3
  Imports..............................     2.1     6.4     9.7     6.0     3.8     3.4     5.1     8.8    11.7    11.8    10.6     9.4     5.7     5.1     5.3     6.1
    Goods..............................     3.2     7.2     9.9     6.8     4.5     3.1     5.3     9.2    11.2    12.3    11.1    10.1     6.1     5.8     5.9     6.6
    Services...........................    -3.0     2.4     8.8     2.4      .5     5.0     4.2     7.3    13.8     9.7     7.7     6.2     3.9     2.0     2.4     3.5

Government consumption expenditures
 and gross investment..................     4.0     4.9     4.0     2.9     3.5     3.0     1.9     2.9     1.7     2.0     2.1     1.7     1.8     2.0     1.6     2.3
  Federal..............................     6.7     7.5     7.8     6.4     8.6     7.2     5.5     8.1     3.6     5.1     4.2     2.1     1.9     2.9     2.3     4.3
    National defense...................     7.4     7.9     8.4     6.5    12.2     9.2     7.5    12.1     3.7     7.8     4.9     2.3     3.0     3.3     1.7     3.3
    Nondefense.........................     5.5     6.8     6.8     6.2     2.1     3.6     1.6      .8     3.5      .0     2.8     1.8     -.2     2.1     3.6     6.4
  State and local......................     2.6     3.6     2.1     1.1      .7      .8      .0      .0      .5      .2      .9     1.5     1.7     1.5     1.2     1.2

Addenda:
  Final sales of domestic product......     1.2     1.7      .8     1.3     2.0     3.3     4.0     4.5     4.0     3.4     3.6     3.5     4.2     4.3     3.3     3.9
  Gross domestic purchases.............     1.9     2.8     2.7     2.2     2.5     3.4     4.0     4.9     5.1     4.4     4.5     4.2     3.5     3.5     3.2     3.6
  Final sales to domestic purchasers...     1.9     2.3     1.6     1.9     2.5     3.6     4.0     4.7     4.5     4.1     4.3     4.1     4.1     4.1     3.3     3.9
  Gross national product...............     1.0     2.3     1.6     1.8     2.4     3.5     4.4     5.0     4.4     3.6     3.2     3.2     3.5     3.6     3.0     3.6
  Real disposable personal income......     4.6     1.4     2.9      .7     1.4     3.6     3.8     4.1     3.2     2.1     4.1     2.3     2.1     1.0      .1     1.3

  Price indexes:
    Gross domestic purchases...........     1.4     1.6     1.9     2.6     2.1     2.1     2.0     2.1     3.0     3.0     3.4     3.1     2.9     3.4     3.5     3.5
    Gross domestic purchases excluding
     food and energy...................     1.9     1.9     1.7     1.9     1.7     1.7     1.7     1.9     2.5     2.6     2.7     2.6     2.4     2.5     2.7     2.7
    GDP................................     1.6     1.6     1.7     2.1     2.0     2.1     2.0     2.1     2.8     2.7     2.9     2.8     2.5     2.9     3.1     3.1
    GDP excluding food and energy......     2.1     2.0     1.9     2.0     1.8     1.8     1.7     1.9     2.5     2.6     2.8     2.7     2.5     2.7     2.9     2.9
    PCE................................     1.2     1.5     1.8     2.3     1.8     1.8     1.7     1.9     2.7     2.6     3.1     2.7     2.5     3.1     3.0     3.0
    PCE excluding food and energy......     1.8     1.9     1.6     1.5     1.3     1.2     1.3     1.7     2.0     2.0     2.2     2.2     2.0     1.9     2.0     1.9
    Market-based PCE\1\................      .9     1.1     1.7     2.3     1.7     1.8     1.6     1.7     2.5     2.3     2.8     2.4     2.4     3.1     3.0     2.9
    Market-based PCE excluding food
     and energy\1\.....................     1.5     1.5     1.4     1.3     1.2     1.1     1.0     1.3     1.5     1.5     1.7     1.8     1.6     1.6     1.7     1.5
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2003       2004       2005       I 05      II 05     III 05      IV 05       I 06r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   10,971.2   11,734.3   12,487.1   12,198.8   12,378.0   12,605.7   12,766.1   13,042.3

Plus: Income receipts from the rest of the
 world.....................................      343.7      415.4      507.6      462.3      489.4      520.8      558.0      596.6
Less: Income payments to the rest of the
 world.....................................      275.6      361.7      474.0      422.9      453.9      476.6      542.6      564.4

Equals: Gross national product.............   11,039.3   11,788.0   12,520.8   12,238.2   12,413.5   12,650.0   12,781.6   13,074.6

Less: Consumption of fixed capital.........    1,331.3    1,435.3    1,574.1    1,448.4    1,457.2    1,863.8    1,526.9    1,522.2
Less: Statistical discrepancy..............       47.1       76.8       55.0       39.4       78.3       44.3       58.0       23.0

Equals: National income....................    9,660.9   10,275.9   10,891.7   10,750.4   10,878.0   10,741.9   11,196.7   11,529.4
  Compensation of employees................    6,321.1    6,687.6    7,113.1    7,001.7    7,060.2    7,177.6    7,212.9    7,321.8
    Wage and salary accruals...............    5,111.1    5,389.4    5,712.3    5,629.9    5,672.3    5,762.3    5,784.6    5,865.1
    Supplements to wages and salaries......    1,210.0    1,298.1    1,400.8    1,371.8    1,387.9    1,415.3    1,428.3    1,456.6
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      810.2      889.6      938.7      917.9      936.6      932.4      967.7      977.1
  Rental income of persons with capital
   consumption adjustment..................      131.7      134.2       72.9      118.0      104.4      -11.1       80.3       69.3
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................    1,031.8    1,161.5    1,351.9    1,288.2    1,347.5    1,293.1    1,478.9    1,655.6
  Net interest and miscellaneous payments..      528.5      505.5      498.3      498.3      488.7      497.6      508.5      534.2
  Taxes on production and imports less
   subsidies...............................      754.8      809.4      848.0      833.2      848.0      853.4      857.2      881.2
  Business current transfer payments.......       81.6       91.1       80.2       99.0       99.6       21.8      100.3       95.8
  Current surplus of government
   enterprises.............................        1.3       -3.0      -11.3       -6.1       -7.0      -22.8       -9.1       -5.4

Addendum:
  Gross domestic income....................   10,924.2   11,657.5   12,432.2   12,159.4   12,299.7   12,561.4   12,708.2   13,019.3
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2003       2004       2005       I 05      II 05     III 05      IV 05       I 06r
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    9,169.1    9,713.3   10,237.7   10,073.4   10,185.7   10,250.4   10,441.1   10,581.6

  Compensation of employees, received......    6,321.1    6,687.6    7,113.1    7,001.7    7,060.2    7,177.6    7,212.9    7,321.8
    Wage and salary disbursements..........    5,111.1    5,389.4    5,712.3    5,629.9    5,672.3    5,762.3    5,784.6    5,865.1
    Supplements to wages and salaries......    1,210.0    1,298.1    1,400.8    1,371.8    1,387.9    1,415.3    1,428.3    1,456.6
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      810.2      889.6      938.7      917.9      936.6      932.4      967.7      977.1
    Farm...................................       27.7       35.8       20.8       24.7       19.6       18.0       21.0       15.1
    Nonfarm................................      782.4      853.8      917.8      893.2      917.1      914.3      946.7      961.9
  Rental income of persons with capital
   consumption adjustment..................      131.7      134.2       72.9      118.0      104.4      -11.1       80.3       69.3
  Personal income receipts on assets.......    1,338.7    1,396.5    1,457.4    1,407.9    1,439.8    1,468.9    1,512.9    1,531.8
    Personal interest income...............      917.6      905.9      945.7      915.4      936.0      951.2      980.1      985.6
    Personal dividend income...............      421.1      490.6      511.7      492.5      503.8      517.6      532.9      546.2
  Personal current transfer receipts.......    1,344.0    1,427.5    1,525.3    1,488.8    1,509.6    1,558.1    1,544.7    1,582.4

  Less: Contributions for government
   social insurance........................      776.6      822.2      869.7      861.0      864.9      875.4      877.4      900.7

Less: Personal current taxes...............      999.9    1,049.1    1,207.7    1,171.4    1,206.0    1,220.4    1,233.1    1,292.8

Equals: Disposable personal income.........    8,169.2    8,664.2    9,029.9    8,902.0    8,979.7    9,030.0    9,208.0    9,288.8

Less: Personal outlays.....................    7,996.3    8,512.5    9,072.1    8,854.6    9,001.2    9,173.9    9,258.5    9,416.9

Equals: Personal saving....................      172.8      151.8      -42.1       47.4      -21.5     -143.9      -50.5     -128.1

  Personal saving as a percentage of
   disposable personal income..............        2.1        1.8        -.5         .5        -.2       -1.6        -.5       -1.4

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    7,741.8    8,004.3    8,112.2    8,098.1    8,102.6    8,074.2    8,175.6    8,206.7
-----------------------------------------------------------------------------------------------------------------------------------
  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
                                                              ---------------------------------------                 ------------------------------- -------
                                         2003    2004    2005    I 05   II 05  III 05   IV 05    I 06r   2004    2005   II 05  III 05   IV 05    I 06r   I 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
 valuation and capital consumption
 adjustments......................... 1,031.8 1,161.5 1,351.9 1,288.2 1,347.5 1,293.1 1,478.9 1,655.6    12.6    16.4     4.6    -4.0    14.4    11.9    28.5

Less: Taxes on corporate income......   232.1   271.1   378.1   362.6   372.5   360.3   417.1   447.7    16.8    39.5     2.7    -3.3    15.8     7.3    23.5

Equals: Profits after tax with
 inventory valuation and capital
 consumption adjustments.............   799.7   890.3   973.8   925.6   975.0   932.8 1,061.8 1,207.9    11.3     9.4     5.3    -4.3    13.8    13.8    30.5
  Net dividends......................   423.2   493.0   514.2   494.9   506.3   520.1   535.4   548.8    16.5     4.3     2.3     2.7     2.9     2.5    10.9
  Undistributed profits with
   inventory valuation and capital
   consumption adjustments...........   376.5   397.3   459.6   430.7   468.7   412.6   526.4   659.0     5.5    15.7     8.8   -12.0    27.6    25.2    53.0

Cash flow:
  Net cash flow with inventory
   valuation and capital consumption
   adjustments....................... 1,130.8 1,196.9 1,303.3 1,239.2 1,280.9 1,324.9 1,368.0 1,504.3     5.8     8.9     3.4     3.4     3.3    10.0    21.4
    Undistributed profits with
     inventory valuation and capital
     consumption adjustments.........   376.5   397.3   459.6   430.7   468.7   412.6   526.4   659.0     5.5    15.7     8.8   -12.0    27.6    25.2    53.0
    Consumption of fixed capital.....   754.4   799.6   843.6   808.5   812.2   912.3   841.6   845.2     6.0     5.5      .5    12.3    -7.7      .4     4.5

  Less: Inventory valuation
   adjustment........................   -13.3   -39.6   -31.5   -39.1   -18.9   -27.5   -40.4   -21.0   .....   .....   .....   .....   .....   .....   .....

  Equals: Net cash flow.............. 1,144.1 1,236.6 1,334.7 1,278.3 1,299.8 1,352.4 1,408.5 1,525.3     8.1     7.9     1.7     4.0     4.1     8.3    19.3

Addenda:
  Profits before tax (without
   inventory valuation and capital
   consumption adjustments)..........   937.2 1,059.3 1,438.3 1,378.3 1,412.2 1,392.6 1,570.1 1,707.8    13.0    35.8     2.5    -1.4    12.7     8.8    23.9
  Profits after tax (without
   inventory valuation and capital
   consumption adjustments)..........   705.1   788.2 1,060.2 1,015.7 1,039.7 1,032.3 1,153.0 1,260.1    11.8    34.5     2.4     -.7    11.7     9.3    24.1
  Inventory valuation adjustment.....   -13.3   -39.6   -31.5   -39.1   -18.9   -27.5   -40.4   -21.0   .....   .....   .....   .....   .....   .....   .....
  Capital consumption adjustment.....   107.9   141.8   -54.9   -51.0   -45.8   -72.1   -50.7   -31.3   .....   .....   .....   .....   .....   .....   .....
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised

                                      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
                                                                      ---------------------------------------  ----------------------------------------------
                                                 2003    2004    2005    I 05   II 05  III 05   IV 05    I 06r   2004    2005   II 05  III 05   IV 05    I 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------
    Corporate profits with inventory
     valuation and capital consumption
     adjustments............................. 1,031.8 1,161.5 1,351.9 1,288.2 1,347.5 1,293.1 1,478.9 1,655.6   129.7   190.4    59.3   -54.4   185.8   176.7

Domestic industries..........................   855.8   976.6 1,146.3 1,094.8 1,150.3 1,069.9 1,270.3 1,416.9   120.8   169.7    55.5   -80.4   200.4   146.6
  Financial..................................   330.9   322.7   347.7   377.6   350.7   278.8   383.7   447.2    -8.2    25.0   -26.9   -71.9   104.9    63.5
  Nonfinancial...............................   524.9   653.9   798.6   717.1   799.6   791.1   886.6   969.8   129.0   144.7    82.5    -8.5    95.5    83.2

Rest of the world............................   176.0   184.9   205.6   193.5   197.2   223.1   208.6   238.7     8.9    20.7     3.7    25.9   -14.5    30.1
  Receipts from the rest of the world........   255.7   309.5   334.2   313.5   328.2   338.3   356.6   372.6    53.8    24.7    14.7    10.1    18.3    16.0
  Less: Payments to the rest of the world....    79.7   124.6   128.5   120.1   131.0   115.1   148.0   134.0    44.9     3.9    10.9   -15.9    32.9   -14.0

    Corporate profits with inventory
     valuation adjustment....................   923.9 1,019.7 1,406.8 1,339.2 1,393.3 1,365.1 1,529.7 1,686.8    95.8   387.1    54.1   -28.2   164.6   157.1

Domestic industries..........................   747.9   834.8 1,201.2 1,145.7 1,196.1 1,142.0 1,321.1 1,448.2    86.9   366.4    50.4   -54.1   179.1   127.1
  Financial..................................   313.0   300.6   347.0   377.2   349.5   278.7   382.7   444.1   -12.4    46.4   -27.7   -70.8   104.0    61.4
    Federal Reserve banks....................    20.2    20.3    26.8    23.1    26.2    27.0    30.8    31.2      .1     6.5     3.1      .8     3.8      .4
    Other financial..........................   292.8   280.3   320.3   354.2   323.2   251.7   352.0   412.9   -12.5    40.0   -31.0   -71.5   100.3    60.9

  Nonfinancial...............................   434.9   534.2   854.2   768.5   846.6   863.3   938.3 1,004.1    99.3   320.0    78.1    16.7    75.0    65.8
    Utilities................................    11.4    12.1    27.4    23.7    26.4    19.7    39.6    39.9      .7    15.3     2.7    -6.7    19.9      .3
    Manufacturing............................    80.7   118.9   207.9   170.2   204.7   218.6   238.3   273.1    38.2    89.0    34.5    13.9    19.7    34.8
      Durable goods..........................    -4.1    34.8    55.9    35.5    59.9    62.0    66.2    91.4    38.9    21.1    24.4     2.1     4.2    25.2
        Fabricated metal products............     8.5    10.3    12.4     8.8    11.4    15.7    13.6    17.1     1.8     2.1     2.6     4.3    -2.1     3.5
        Machinery............................     1.4     1.0     4.7      .9     2.9     7.6     7.2     9.4     -.4     3.7     2.0     4.7     -.4     2.2
        Computer and electronic products.....   -16.1    -3.2     5.0      .5     4.2     6.7     8.5    12.3    12.9     8.2     3.7     2.5     1.8     3.8
        Electrical equipment, appliances,
         and components......................     1.9      .3     4.5    -1.3     5.5     8.6     5.2     7.6    -1.6     4.2     6.8     3.1    -3.4     2.4
        Motor vehicles, bodies and trailers,
         and parts...........................   -11.6    -3.4   -22.2   -20.8   -15.7   -25.3   -27.0   -20.7     8.2   -18.8     5.1    -9.6    -1.7     6.3
        Other durable goods..................    11.9    29.9    51.6    47.3    51.6    48.8    58.7    65.6    18.0    21.7     4.3    -2.8     9.9     6.9

      Nondurable goods.......................    84.8    84.0   152.0   134.7   144.8   156.6   172.1   181.7     -.8    68.0    10.1    11.8    15.5     9.6
        Food and beverage and tobacco
         products............................    23.5    24.0    39.8    39.6    37.7    40.8    41.1    41.9      .5    15.8    -1.9     3.1      .3      .8
        Petroleum and coal products..........    23.6    31.0    70.2    62.8    66.3    70.8    80.7    78.5     7.4    39.2     3.5     4.5     9.9    -2.2
        Chemical products....................    20.8    13.5    21.4    18.8    20.5    22.7    23.4    32.4    -7.3     7.9     1.7     2.2      .7     9.0
        Other nondurable goods...............    16.9    15.6    20.7    13.5    20.3    22.3    26.9    28.9    -1.3     5.1     6.8     2.0     4.6     2.0

    Wholesale trade..........................    56.3    63.5    93.9    81.4    98.1    95.4   100.6   100.2     7.2    30.4    16.7    -2.7     5.2     -.4
    Retail trade.............................    87.7    90.0   115.2   104.6   109.1   116.9   130.4   122.8     2.3    25.2     4.5     7.8    13.5    -7.6
    Transportation and warehousing...........     8.1     8.4    28.2    22.9    27.9    32.9    29.1    37.0      .3    19.8     5.0     5.0    -3.8     7.9
    Information..............................    -1.9    17.0    51.1    46.7    53.5    50.2    54.0    58.7    18.9    34.1     6.8    -3.3     3.8     4.7
    Other nonfinancial.......................   192.4   224.3   330.4   318.9   326.9   329.6   346.4   372.4    31.9   106.1     8.0     2.7    16.8    26.0

Rest of the world............................   176.0   184.9   205.6   193.5   197.2   223.1   208.6   238.7     8.9    20.7     3.7    25.9   -14.5    30.1
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised
  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
                                                                                ---------------------------------------------------
                                                  2003       2004       2005       I 05      II 05     III 05      IV 05       I 06r
-----------------------------------------------------------------------------------------------------------------------------------
                                                                             Billions of dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business....................    5,595.7    5,995.4    6,465.3    6,282.8    6,414.0    6,528.0    6,636.5    6,819.5

Consumption of fixed capital...............      652.6      690.3      729.1      697.5      700.4      792.8      725.7      728.1

Net value added............................    4,943.1    5,305.1    5,736.2    5,585.3    5,713.6    5,735.2    5,910.8    6,091.4

  Compensation of employees................    3,703.2    3,906.8    4,173.3    4,105.4    4,140.5    4,214.7    4,232.5    4,301.3
    Wage and salary accruals...............    3,007.8    3,168.6    3,375.3    3,323.6    3,349.9    3,408.6    3,419.2    3,470.2
    Supplements to wages and salaries......      695.4      738.3      798.0      781.8      790.6      806.1      813.4      831.1
  Taxes on production and imports less
   subsidies...............................      486.5      519.1      549.7      537.7      547.9      553.7      559.8      569.2
  Net operating surplus....................      753.4      879.2    1,013.2      942.2    1,025.2      966.8    1,118.5    1,220.9
    Net interest and miscellaneous
     payments..............................      166.2      164.9      171.5      167.0      167.3      172.8      179.0      189.8
    Business current transfer payments.....       62.4       60.4       43.1       58.0       58.4        2.9       52.9       61.3
    Corporate profits with inventory
     valuation and capital consumption
     adjustments...........................      524.9      653.9      798.6      717.1      799.6      791.1      886.6      969.8
      Taxes on corporate income............      126.5      165.9      254.7      231.9      248.6      258.0      280.3      291.6
      Profits after tax with inventory
       valuation and capital consumption
       adjustments.........................      398.3      487.9      543.9      485.2      550.9      533.1      606.3      678.2
        Net dividends......................      295.5      361.2      252.5      306.7      297.6      181.7      224.0      462.5
        Undistributed profits with
         inventory valuation and capital
         consumption adjustments...........      102.8      126.7      291.4      178.5      253.4      351.4      382.3      215.7

Addenda:
  Profits before tax (without inventory
   valuation and capital consumption
   adjustments)............................      448.1      573.9      885.7      807.6      865.5      890.8      978.8    1,025.1
  Profits after tax (without inventory
   valuation and capital consumption
   adjustments)............................      321.6      407.9      630.9      575.6      616.9      632.8      698.5      733.5
  Inventory valuation adjustment...........      -13.3      -39.6      -31.5      -39.1      -18.9      -27.5      -40.4      -21.0
  Capital consumption adjustment...........       90.0      119.7      -55.6      -51.3      -47.0      -72.2      -51.7      -34.3
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business\1\.................    5,418.2    5,714.1    6,077.2    5,943.3    6,046.0    6,121.9    6,197.6    6,322.1

Consumption of fixed capital\2\............      629.4      656.5      686.9      660.2      663.6      745.2      678.6      675.9
Net value added\3\.........................    4,788.8    5,057.6    5,390.3    5,283.1    5,382.4    5,376.6    5,519.0    5,646.2
                                           ----------------------------------------------------------------------------------------
                                                                                   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\...      1.033      1.049      1.064      1.057      1.061      1.066      1.071      1.079

  Compensation of employees (unit labor
   cost)...................................       .683       .684       .687       .691       .685       .688       .683       .680

  Unit nonlabor cost.......................       .252       .251       .246       .245       .244       .249       .245       .245
    Consumption of fixed capital...........       .120       .121       .120       .117       .116       .130       .117       .115
    Taxes on production and imports less
     subsidies plus business current
     transfer payments.....................       .101       .101       .098       .100       .100       .091       .099       .100
    Net interest and miscellaneous payments       .031       .029       .028       .028       .028       .028       .029       .030

  Corporate profits with inventory valuation
   and capital consumption adjustments (unit
   profits from current production)........       .097       .114       .131       .121       .132       .129       .143       .153
    Taxes on corporate income..............       .023       .029       .042       .039       .041       .042       .045       .046
    Profits after tax with inventory
     valuation and capital consumption
     adjustments...........................       .074       .085       .089       .082       .091       .087       .098       .107
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised
  1. The current-dollar gross value added is deflated using the
gross value added chain-type price index for nonfinancial industries
from the GDP-by-industry accounts.  For periods when this price index
is not available, the chain-type price index for GDP goods and
structures is used.
  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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2003   2004   2005  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................    2.7    4.2    3.5    2.2    2.4     .2    1.7    3.7    7.2    3.6    4.3    3.5    4.0    3.3    3.8    3.3    4.1    1.7    5.6

  Goods.............................    3.4    6.5    4.7    1.5    5.2   -5.2    4.3    2.3   16.8    2.9    7.2    4.7    6.6    3.9    4.4    5.0    5.3    2.3   11.7
  Services..........................    2.2    2.7    2.7    3.4    1.7    2.9     .7    3.7    1.3    3.8    3.3    1.2    3.0    3.2    3.2    1.5    3.6    1.1    2.6
  Structures........................    3.2    5.7    4.8   -2.7   -3.0    3.1    -.9    8.2   13.6    4.1     .6   13.1    1.2    2.2    5.2    8.4    3.3    2.6    4.6

  Motor vehicle output..............    3.8    4.6    3.4    5.7   11.6     .5     .3   -2.5   22.6   -3.6   14.4   -7.3    3.0    8.8    4.3    -.3   17.6  -17.2   -6.4
  GDP excuding motor vehicle
   output...........................    2.7    4.2    3.5    2.1    2.0     .2    1.8    3.9    6.7    3.8    3.9    3.9    4.0    3.1    3.8    3.4    3.7    2.4    6.1

  Final sales of computers\1\.......   20.2   20.4   39.6     .7   29.3   15.3    7.1   14.4   78.0   11.9   10.2   10.3   13.3   56.5   54.9   45.4   20.3   45.9    6.0
  GDP excluding final sales of
   computers........................    2.6    4.1    3.3    2.2    2.2     .1    1.7    3.6    6.8    3.5    4.2    3.4    3.9    3.0    3.5    3.0    4.0    1.3    5.6

  Farm gross value added\2\.........    8.4     .0   -8.0  133.6   63.9   34.2  -22.3   27.0  -34.1  -13.1   89.8  -31.5  -11.3  -17.1    7.3  -31.1   20.9   36.7    3.2

  Nonfarm business gross value
   added\3\.........................    3.3    4.8    4.2    1.4    3.1     .1    2.0    4.7   10.4    2.8    4.2    4.6    4.6    3.9    4.3    4.4    4.7    1.5    6.9

Price indexes:
  GDP...............................    2.0    2.6    2.8    1.5    1.6    2.2    3.1    1.1    1.8    1.9    3.6    3.9    1.5    2.7    3.1    2.6    3.3    3.5    3.1
  GDP excluding food and energy.....    1.8    2.5    2.7    1.8    1.6    2.0    2.6     .9    1.6    1.7    3.3    3.4    2.0    2.6    2.9    2.4    2.8    3.4    3.1
  GDP excluding final sales of
   computers........................    2.2    2.7    3.0    1.7    1.7    2.4    3.2    1.2    2.0    1.9    3.7    3.9    1.6    2.9    3.3    2.8    3.5    3.7    3.3

  Gross domestic purchases..........    2.2    2.9    3.2    2.5    1.7    2.2    4.1     .4    2.0    1.7    4.2    4.1    2.0    3.2    2.9    3.3    4.2    3.7    2.6
  Gross domestic purchases excluding
   food and energy..................    1.8    2.4    2.5    1.7    1.6    1.8    2.5    1.0    1.7    1.8    3.4    3.2    2.0    2.4    3.0    2.1    2.5    3.2    3.0
  Gross domestic purchases excluding
   final sales of computers to
   domestic purchasers..............    2.4    3.0    3.4    2.6    1.9    2.4    4.3     .5    2.2    1.8    4.3    4.3    2.2    3.4    3.1    3.5    4.5    3.9    2.8

  Personal consumption expenditures
   (PCE)............................    1.9    2.6    2.8    2.8    1.8    1.7    3.0     .6    2.0    1.3    3.9    3.8    1.5    3.1    2.3    3.3    3.7    2.9    2.0
  Personal consumption expenditures
   excluding food and energy........    1.3    2.0    2.0    1.8    1.9    1.2    1.1    1.0    1.5    1.4    2.7    2.5    1.5    2.3    2.4    1.7    1.4    2.4    2.0
  Market-based PCE\4\...............    1.9    2.3    2.7    2.8    1.7    1.7    3.1     .5    1.9     .9    3.4    3.7    1.1    2.8    2.1    3.4    3.9    2.6    1.7
  Market-based PCE excluding food
   and energy\4\....................    1.2    1.5    1.7    1.6    1.7    1.2     .8    1.0    1.4     .9    1.9    2.0    1.1    1.8    2.2    1.5    1.1    1.9    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 2003-04
annual percent change in real GDP uses prices for 2003 and 2004 as weights, and the 2003-04 annual
percent change in GDP prices uses quantities for 2003 and 2004 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.