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Gross Domestic Product and Corporate Profits: Fourth Quarter 2005 "final" estimates
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Virginia H. Mannering: (202) 606-5304 (GDP) BEA 06-11
Greg Key: (202) 606-9727 (Profits)
Recorded message: (202) 606-5306
GROSS DOMESTIC PRODUCT: FOURTH QUARTER 2005 (FINAL)
CORPORATE PROFITS: FOURTH QUARTER 2005
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 1.7 percent in the fourth quarter of 2005,
according to final estimates released by the Bureau of Economic Analysis. In the third quarter, real
GDP increased 4.1 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
1.6 percent (see "Revisions" on page 3).
The increase in real GDP in the fourth quarter primarily reflected positive contributions from
private inventory investment, personal consumption expenditures (PCE), exports, equipment and
software, and residential fixed investment that were partly offset by a negative contribution from federal
government spending. Imports, which are a subtraction in the calculation of GDP, increased.
The deceleration in real GDP growth in the fourth quarter primarily reflected a deceleration in
PCE, an acceleration in imports, a downturn in federal government spending, and decelerations in
equipment and software and in residential fixed investment that were partly offset by an upturn in
inventory investment and an acceleration in exports.
Final sales of computers contributed 0.33 percentage point to the fourth-quarter growth in real
GDP after contributing 0.16 percentage point to the third-quarter growth. Motor vehicle output
subtracted 0.64 percentage point from the fourth-quarter growth in real GDP after contributing 0.56
percentage point to the third-quarter growth.
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.
The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 3.7 percent in the fourth quarter, 0.1 percentage point more than the preliminary estimate; this
index increased 4.2 percent in the third quarter. Excluding food and energy prices, the price index for
gross domestic purchases increased 3.2 percent in the fourth quarter, compared with an increase of 2.5
percent in the third.
Real personal consumption expenditures increased 0.9 percent in the fourth quarter, compared
with an increase of 4.1 percent in the third. Real nonresidential fixed investment increased 4.5 percent,
compared with an increase of 8.5 percent. Nonresidential structures increased 3.1 percent, compared
with an increase of 2.2 percent. Equipment and software increased 5.0 percent, compared with an
increase of 10.6 percent. Real residential fixed investment increased 2.8 percent, compared with an
increase of 7.3 percent.
Real exports of goods and services increased 5.1 percent in the fourth quarter, compared with an
increase of 2.5 percent in the third. Real imports of goods and services increased 12.1 percent,
compared with an increase of 2.4 percent.
Real federal government consumption expenditures and gross investment decreased 2.6 percent in
the fourth quarter, in contrast to an increase of 7.4 percent in the third. National defense decreased 8.9
percent, in contrast to an increase of 10.0 percent. Nondefense increased 11.7 percent, compared with
an increase of 2.4 percent. Real state and local government consumption expenditures and gross
investment increased 0.2 percent, the same as in the third quarter.
The real change in private inventories added 1.89 percentage points to the fourth-quarter change in
real GDP, after subtracting 0.43 percentage point from the third-quarter change. Private businesses
increased inventories $37.9 billion in the fourth quarter, following decreases of $13.3 billion in the third
quarter and $1.7 billion in the second.
Real final sales of domestic product -- GDP less change in private inventories -- decreased 0.2
percent in the fourth quarter, in contrast to an increase of 4.6 percent in the third.
Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 2.9 percent in the fourth quarter, compared with an increase of 4.0 percent in the
third.
Gross national product
Real gross national product -- the goods and services produced by the labor and property supplied
by U.S. residents -- increased 0.7 percent in the fourth quarter, compared with an increase of 4.4 percent
in the third. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which
decreased $25.6 billion in the fourth quarter after increasing $7.6 billion in the third; in the fourth
quarter, receipts increased $28.9 billion, and payments increased $54.5 billion.
Current-dollar GDP
Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
5.2 percent, or $160.4 billion, in the fourth quarter to a level of $12,766.1 billion. In the third quarter,
current-dollar GDP increased 7.6 percent, or $227.7 billion.
Revisions
The final estimate of the fourth-quarter increase in real GDP is 0.1 percentage point, or $0.7
billion, higher than the preliminary estimate issued last month. The upward revision to the percentage
change in real GDP primarily reflected an upward revision to inventory investment that was partly offset
by a downward revision to personal consumption expenditures for services.
Advance Preliminary Final
(Percent change from preceding quarter)
Real GDP............................... 1.1 1.6 1.7
Current-dollar GDP..................... 4.2 5.0 5.2
Gross domestic purchases price index... 3.3 3.6 3.7
Corporate Profits
Profits from current production (corporate profits with inventory valuation and capital
consumption adjustments) increased $185.8 billion in the fourth quarter, in contrast to a decrease of
$54.4 billion in the third. Current-production cash flow (net cash flow with inventory valuation and
capital consumption adjustments) -- the internal funds available to corporations for investment --
increased $43.1 billion in the fourth quarter, compared with an increase of $44.0 billion in the third.
Fourth-quarter profits from current production were reduced by $22.9 billion because of
Hurricane Wilma; third-quarter profits had been reduced by $165.3 billion because of Hurricanes
Katrina and Rita. These reductions reflected the net benefits paid by domestic insurance companies and
the uninsured losses of corporate property.
Taxes on corporate income increased $56.8 billion in the fourth quarter, in contrast to a decrease
of $12.2 billion in the third. Profits after tax with inventory valuation and capital consumption
adjustments increased $129.0 billion in the fourth quarter, in contrast to a decrease of $42.2 billion in the
third. Dividends increased $15.3 billion, compared with an increase of $13.8 billion; current-production
undistributed profits increased $113.8 billion, in contrast to a decrease of $56.1 billion.
Domestic profits of financial corporations increased $104.9 billion in the fourth quarter, in
contrast to a decrease of $71.9 billion in the third. Domestic profits of nonfinancial corporations
increased $95.5 billion in the fourth quarter, in contrast to a decrease of $8.5 billion in the third. In the
fourth quarter, real gross corporate product increased, and profits per unit of real product increased. The
increase in unit profits reflected an increase in unit prices and decreases in both the unit labor and
nonlabor costs incurred by corporations.
The rest-of-the-world component of profits decreased $14.5 billion in the fourth quarter, in
contrast to an increase of $25.9 billion in the third. This measure is calculated as (1) receipts by U.S.
residents of earnings from their foreign affiliates plus dividends received by U.S. residents from
unaffiliated foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign
parents plus dividends paid by U.S. corporations to unaffiliated foreign residents. The fourth-quarter
decrease was accounted for by a smaller increase in receipts than 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 financial
corporations partly reflected a rebound from the third-quarter impacts of Hurricanes Katrina and Rita.
The increase in nonfinancial corporations reflected increases in all major categories (except
transportation and warehousing), led by utilities and by manufacturing. Within manufacturing,
petroleum accounted for about half the increase.
Profits before tax increased $177.5 billion in the fourth quarter, in contrast to a decrease of $19.6
billion in the third. The before-tax measure of profits does not reflect, as does profits from current
production, the capital consumption and inventory valuation adjustments. These adjustments convert
depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to
the current-cost measures used in the national income and product accounts. The capital consumption
adjustment increased $21.4 billion in the fourth quarter (from -$72.1 billion to -$50.7 billion), in
contrast to a decrease of $26.3 billion in the third. The inventory valuation adjustment decreased $12.9
billion (from -$27.5 billion to -$40.4 billion), compared with a decrease of $8.6 billion.
Corporate profits in 2005
Profits from current production increased 16.4 percent in 2005, compared with an increase of
12.6 percent in 2004. Domestic profits increased 17.4 percent, compared with an increase of 14.1
percent. The rest-of-the-world component of profits increased 11.2 percent, compared with an increase
of 5.1 percent.
Taxes on corporate income increased 39.5 percent in 2005, compared with an increase of 16.8
percent in 2004. Profits after tax with inventory valuation and capital consumption adjustments
increased 9.4 percent, compared with an increase of 11.3 percent. Dividends increased 4.3 percent,
compared with an increase of 16.5 percent; current-production undistributed profits increased 15.7
percent, compared with an increase of 5.5 percent.
Profits before tax increased 35.8 percent in 2005, compared with an increase of 13.0 percent in
2004. In 2005, the difference between the increase in profits from current production and the increase in
profits before tax was mainly due to the effects of the Job Creation and Worker Assistance Act of 2002
and the Jobs and Growth Tax Relief Reconciliation Act of 2003, which allowed accelerated depreciation
and raised before-tax profits. Profits from current production was not affected by the Acts, because this
measure does not depend on the depreciation-accounting practices used for federal income tax purposes.
BEA's national, international, regional, and industry estimates; the Survey of Current Business; and
BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting the
site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.
Summary BEA estimates are available on recorded messages at the time of public release at the
following telephone numbers:
(202) 606-5306 Gross domestic product
(202) 606-5303 Personal income and outlays
* * *
Next release -- April 28, 2006, at 8:30 A.M. EDT for:
Gross Domestic Product: First Quarter 2006 (Advance)
- more -
Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
[Quarters seasonally adjusted at annual rates]
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2003 2004 2005r I 02 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 05r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP). 2.7 4.2 3.5 2.7 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
Personal consumption expenditures... 2.9 3.9 3.5 1.4 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
Durable goods..................... 6.6 6.0 4.5 -4.2 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
Nondurable goods.................. 3.2 4.7 4.4 3.3 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
Services.......................... 2.0 3.0 2.9 1.8 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
Gross private domestic investment... 3.9 11.9 6.1 13.6 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
Fixed investment.................. 3.6 9.7 8.1 -6.3 -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
Nonresidential.................. 1.3 9.4 8.6 -12.8 -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
Structures.................... -4.2 2.2 2.0 -19.0 -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
Equipment and software........ 3.2 11.9 10.9 -10.4 -.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
Residential..................... 8.4 10.3 7.1 10.4 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
Change in private inventories..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Net exports of goods and services... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Exports........................... 1.8 8.4 6.9 5.2 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
Goods........................... 1.8 8.9 7.3 -1.6 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
Services........................ 1.7 7.4 6.0 22.9 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
Imports........................... 4.6 10.7 6.3 11.7 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
Goods........................... 4.9 11.0 6.9 9.2 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
Services........................ 3.0 9.6 3.6 24.7 -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
Government consumption expenditures
and gross investment............... 2.8 2.2 1.8 4.3 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
Federal........................... 6.9 5.2 2.3 5.9 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
National defense................ 8.8 7.0 2.6 3.7 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
Nondefense...................... 3.4 1.8 1.8 10.2 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
State and local................... .6 .4 1.5 3.5 1.0 1.9 2.0 -.6 -.3 2.0 -.9 -.7 1.8 .8 1.8 1.6 2.6 .2 .2
Addenda:
Final sales of domestic product... 2.7 3.9 3.8 -.2 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
Gross domestic purchases.......... 3.0 4.7 3.6 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
Final sales to domestic
purchasers....................... 3.0 4.4 3.9 .7 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
Gross national product (GNP)...... 3.0 4.0 3.3 .8 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
Disposable personal income........ 2.4 3.4 1.4 11.6 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 6.7
Current-dollar measures:
GDP............................. 4.8 7.0 6.4 4.3 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
Final sales of domestic product. 4.8 6.6 6.8 1.4 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
Gross domestic purchases........ 5.3 7.7 6.9 4.9 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
Final sales to domestic
purchasers..................... 5.3 7.4 7.2 2.2 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
GNP............................. 5.1 6.8 6.2 2.3 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
Disposable personal income...... 4.3 6.1 4.3 12.6 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 9.8
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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 2005r I 02 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 05r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:
Gross domestic product.......... 2.7 4.2 3.5 2.7 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
Percentage points at annual rates:
Personal consumption expenditures. 2.05 2.71 2.48 1.01 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
Durable goods................... .57 .51 .37 -.39 .31 .98 -.47 .31 1.23 1.64 -.03 .38 .03 .88 .45 .22 .64 .76 -1.47
Motor vehicles and parts...... .19 .06 -.03 -1.07 .02 .89 -.75 .22 .53 .77 -.43 -.02 -.19 .44 .11 -.31 .27 .45 -1.92
Furniture and household
equipment.................... .26 .34 .28 .50 .23 .06 .21 .03 .48 .63 .30 .31 .24 .34 .21 .32 .17 .37 .33
Other......................... .11 .10 .13 .18 .07 .02 .07 .06 .22 .23 .10 .08 -.02 .10 .14 .20 .20 -.06 .12
Nondurable goods................ .63 .94 .90 .65 .26 .06 .70 .63 .37 1.65 .61 1.31 .53 .78 1.09 1.07 .74 .73 1.02
Food.......................... .25 .48 .49 .21 .18 .00 .20 .38 .05 .69 .20 .88 .27 .32 .63 .50 .42 .61 .50
Clothing and shoes............ .14 .17 .17 .23 .04 -.05 .31 -.04 .27 .33 .04 .37 -.09 .17 .25 .15 .20 .08 .27
Gasoline, fuel oil, and other
energy goods................. .01 .03 .04 -.06 .06 .04 -.04 -.01 -.04 .12 .07 -.04 .03 .02 .07 .21 -.11 -.11 .03
Other......................... .22 .26 .21 .27 -.01 .07 .23 .29 .09 .51 .31 .11 .33 .28 .14 .20 .23 .15 .21
Services........................ .85 1.27 1.21 .75 1.07 .54 .74 .76 .94 .84 1.57 1.58 .77 1.39 1.47 1.15 .97 1.36 1.08
Housing....................... .07 .30 .24 .06 -.03 -.11 -.07 .08 .13 .24 .31 .39 .27 .29 .29 .23 .22 .20 .16
Household operation........... .05 .07 .10 .07 .29 -.11 .19 .01 -.06 -.02 .25 .07 -.07 .04 .34 .07 -.02 .17 .00
Electricity and gas......... .02 .03 .06 .11 .25 -.07 .23 -.05 -.13 -.07 .22 .02 -.11 -.05 .37 .02 -.08 .10 .03
Other household operation... .03 .05 .04 -.05 .04 -.04 -.04 .07 .07 .05 .03 .05 .05 .10 -.03 .05 .06 .08 -.02
Transportation................ .00 .03 .04 .01 -.04 -.07 -.01 .07 -.05 .02 .02 .13 -.01 .00 -.01 .06 .06 .05 .11
Medical care.................. .49 .49 .56 .59 .67 .59 .59 .45 .42 .31 .59 .37 .56 .64 .54 .53 .50 .66 .58
Recreation.................... .10 .11 .06 .09 .07 .04 .16 .04 .15 .07 .21 .17 .00 .10 .02 .14 .02 .02 .02
Other......................... .14 .26 .21 -.08 .12 .20 -.12 .10 .35 .22 .19 .44 .02 .33 .29 .11 .18 .26 .20
Gross private domestic investment. .58 1.82 1.00 1.92 .30 .87 -.14 -.03 .42 2.53 1.78 1.52 3.10 .75 1.11 1.42 -.63 .87 2.54
Fixed investment................ .54 1.47 1.29 -1.04 -.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
Nonresidential................ .13 .92 .88 -1.50 -.66 -.21 -.52 -.10 .79 1.08 .43 .76 1.29 1.15 1.04 .58 .90 .88 .48
Structures.................. -.11 .06 .05 -.60 -.58 -.44 -.14 -.22 .32 .00 .03 -.09 .22 .04 .12 -.05 .07 .06 .09
Equipment and software...... .24 .86 .82 -.90 -.09 .23 -.38 .12 .47 1.09 .40 .85 1.07 1.12 .92 .64 .83 .82 .39
Information processing
equipment and software... .19 .49 .48 -.28 .06 .23 -.38 .21 .20 .79 .52 .61 .38 .31 .34 .72 .53 .42 .32
Computers and peripheral
equipment.............. .09 .19 .24 .15 -.06 .16 -.04 .07 .10 .21 .17 .20 .18 .16 .27 .31 .23 .11 .28
Software................ .06 .11 .17 -.04 .15 .12 -.17 .04 .04 .29 .15 .08 .05 .10 .09 .22 .29 .14 .09
Other................... .05 .19 .08 -.38 -.03 -.05 -.17 .10 .05 .29 .20 .33 .16 .05 -.02 .18 .01 .17 -.06
Industrial equipment...... .00 .04 .09 .01 -.12 .08 .01 .15 -.12 -.04 -.14 .19 -.05 .30 .06 .23 -.27 .20 .16
Transportation equipment.. -.03 .15 .17 -.53 -.16 -.07 -.02 -.25 .36 .01 -.16 -.04 .56 .23 .39 -.16 .33 .18 -.19
Other equipment........... .08 .18 .09 -.10 .14 .00 .02 .01 .04 .33 .18 .09 .18 .28 .13 -.14 .23 .02 .10
Residential................... .41 .55 .41 .46 .43 .09 .30 .23 .47 1.07 .59 .28 .93 .15 .09 .54 .62 .43 .17
Change in private inventories... .05 .35 -.29 2.95 .53 .98 .08 -.16 -.84 .38 .75 .48 .87 -.56 -.03 .29 -2.14 -.43 1.89
Farm.......................... .03 .03 -.07 .24 -.39 .31 .03 .17 -.21 -.07 .19 -.20 .45 -.01 -.28 -.11 -.09 -.02 .02
Nonfarm....................... .02 .32 -.22 2.71 .92 .67 .04 -.33 -.63 .45 .57 .68 .42 -.55 .25 .40 -2.05 -.42 1.87
Net exports of goods and services. -.46 -.73 -.29 -.97 -.62 -.49 -1.52 .08 -.66 .48 -.47 -1.16 -1.37 -.17 -.98 -.40 1.11 -.12 -1.36
Exports......................... .17 .80 .70 .47 .96 .27 -.31 -.29 -.20 1.04 1.69 .49 .67 .53 .70 .74 1.07 .26 .52
Goods......................... .12 .59 .51 -.11 .88 .14 -.64 .09 .00 .58 1.05 .50 .53 .55 .25 .37 1.08 .23 .56
Services...................... .05 .22 .18 .59 .08 .13 .33 -.38 -.20 .46 .64 -.01 .14 -.02 .44 .37 -.01 .03 -.05
Imports......................... -.63 -1.53 -.98 -1.44 -1.58 -.76 -1.21 .37 -.46 -.56 -2.16 -1.65 -2.03 -.70 -1.68 -1.14 .04 -.38 -1.88
Goods......................... -.56 -1.30 -.89 -.95 -1.65 -.72 -.90 .32 -.71 -.10 -1.91 -1.41 -1.71 -.59 -1.60 -1.05 .15 -.46 -1.76
Services...................... -.07 -.23 -.09 -.48 .07 -.04 -.31 .05 .26 -.46 -.25 -.23 -.32 -.11 -.08 -.10 -.11 .09 -.12
Government consumption expenditures
and gross investment............. .53 .41 .34 .79 .88 .43 .89 -.05 1.37 .11 .10 .62 .43 .35 .17 .35 .47 .54 -.15
Federal......................... .45 .36 .16 .36 .76 .20 .64 .03 1.40 -.14 .21 .71 .22 .25 -.04 .17 .17 .52 -.18
National defense.............. .37 .32 .12 .14 .45 .17 .59 -.15 1.46 -.31 .35 .60 .04 .41 -.16 .14 .17 .46 -.44
Consumption expenditures.... .33 .26 .11 .13 .29 .07 .67 -.19 1.35 -.34 .32 .46 .01 .39 -.26 .34 .04 .37 -.49
Gross investment............ .04 .06 .01 .01 .16 .10 -.08 .04 .11 .03 .03 .14 .02 .02 .10 -.20 .13 .09 .05
Nondefense.................... .08 .04 .04 .22 .31 .03 .05 .18 -.06 .17 -.14 .11 .19 -.16 .12 .03 -.01 .06 .26
Consumption expenditures..... .08 .04 .02 .14 .21 .11 .07 .18 -.19 .29 -.10 .11 .04 -.04 .08 .02 -.09 .08 .14
Gross investment............. .00 .00 .02 .07 .10 -.08 -.02 .00 .14 -.12 -.04 .00 .15 -.12 .04 .01 .08 -.02 .12
State and local................. .08 .05 .17 .43 .12 .23 .25 -.08 -.04 .25 -.11 -.09 .21 .10 .21 .19 .31 .03 .03
Consumption expenditures.... .06 .04 .11 .30 .24 .17 .15 -.02 -.01 -.01 .02 .00 .07 .14 .16 .08 .08 .17 .09
Gross investment............ .02 .01 .06 .12 -.12 .06 .10 -.07 -.03 .26 -.13 -.08 .14 -.04 .05 .11 .23 -.14 -.06
Addenda:
Goods........................... 1.10 2.06 1.49 1.30 .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
Services........................ 1.30 1.59 1.54 1.43 1.95 .98 1.65 .41 2.15 .78 2.20 1.90 .71 1.75 1.82 1.86 .88 2.09 .65
Structures...................... .31 .57 .49 .01 -.26 -.29 .29 -.08 .76 1.28 .41 .06 1.26 .13 .23 .53 .85 .35 .28
Motor vehicle output............ .14 .16 .12 .53 .20 .40 .01 .00 -.09 .72 -.13 .49 -.26 .11 .29 .15 -.01 .56 -.64
Final sales of computers........ .15 .15 .28 -.06 .01 .20 .11 .05 .10 .45 .09 .08 .08 .10 .36 .37 .32 .16 .33
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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
-------------------------------------------- -------------------------------------------- -------------------------
2005r IV 04 I 05 II 05 III 05 IV 05r 2005r IV 04 I 05 II 05 III 05 IV 05r 2005r III 05 IV 05r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product....... 12,487.1 11,995.2 12,198.8 12,378.0 12,605.7 12,766.1 11,134.8 10,897.1 10,999.3 11,089.2 11,202.3 11,248.3 379.1 113.1 46.0
Personal consumption expenditures. 8,745.7 8,416.1 8,535.8 8,677.0 8,844.0 8,926.2 7,856.9 7,698.8 7,764.9 7,829.5 7,907.9 7,925.4 268.3 78.4 17.5
Durable goods................... 1,026.5 1,008.6 1,017.3 1,035.5 1,050.9 1,002.1 1,138.4 1,115.1 1,122.3 1,143.9 1,169.7 1,117.7 48.5 25.8 -52.0
Motor vehicles and parts...... 446.8 452.8 449.6 458.5 468.7 410.5 452.8 464.6 455.0 463.3 477.3 415.5 -4.2 14.0 -61.8
Furniture and household
equipment.................... 373.2 360.6 366.9 370.0 374.9 381.1 485.0 456.8 469.2 475.9 490.5 504.4 42.1 14.6 13.9
Other......................... 206.4 195.2 200.8 207.0 207.2 210.5 211.3 200.2 206.5 212.9 211.0 214.7 15.5 -1.9 3.7
Nondurable goods................ 2,564.4 2,437.1 2,476.6 2,533.7 2,604.9 2,642.5 2,297.9 2,236.5 2,265.6 2,285.9 2,305.8 2,334.2 97.5 19.9 28.4
Food.......................... 1,218.6 1,166.4 1,184.2 1,207.1 1,229.9 1,253.3 1,081.1 1,047.4 1,060.9 1,072.2 1,088.7 1,102.8 52.0 16.5 14.1
Clothing and shoes............ 345.4 335.2 340.5 344.9 343.9 352.3 376.5 363.0 367.9 374.4 377.2 386.7 21.5 2.8 9.5
Gasoline, fuel oil, and other
energy goods................. 310.6 267.9 275.2 296.4 338.3 332.6 204.9 203.0 207.7 205.2 203.0 203.5 3.5 -2.2 .5
Other......................... 689.8 667.6 676.8 685.3 692.8 704.2 639.7 625.5 631.2 637.7 641.9 648.0 23.0 4.2 6.1
Services........................ 5,154.9 4,970.4 5,041.8 5,107.8 5,188.3 5,281.6 4,436.4 4,362.1 4,392.0 4,417.6 4,453.5 4,482.6 125.5 35.9 29.1
Housing....................... 1,281.5 1,244.7 1,260.6 1,275.3 1,288.2 1,301.8 1,103.7 1,089.5 1,095.6 1,101.4 1,106.6 1,111.0 25.3 5.2 4.4
Household operation........... 481.8 457.9 465.3 471.4 484.4 506.1 416.3 412.4 414.3 413.8 418.5 418.5 10.7 4.7 .0
Electricity and gas......... 201.7 185.9 189.5 192.4 202.1 222.9 155.0 154.7 155.2 153.2 155.5 156.1 5.8 2.3 .6
Other household operation... 280.1 272.1 275.8 279.0 282.3 283.2 261.0 257.3 258.8 260.5 262.7 262.0 4.7 2.2 -.7
Transportation................ 321.2 309.2 312.3 318.5 324.1 329.9 287.3 283.0 284.6 286.3 287.6 290.6 3.9 1.3 3.0
Medical care.................. 1,510.0 1,441.6 1,470.5 1,492.6 1,522.0 1,554.7 1,291.6 1,255.4 1,269.1 1,282.3 1,299.6 1,315.2 58.1 17.3 15.6
Recreation.................... 355.2 344.3 350.3 353.1 356.6 360.7 308.6 304.1 307.7 308.3 308.9 309.4 6.2 .6 .5
Other......................... 1,205.3 1,172.6 1,182.8 1,196.8 1,213.0 1,228.4 1,027.8 1,016.6 1,019.5 1,024.3 1,031.1 1,036.5 21.1 6.8 5.4
Gross private domestic investment. 2,105.0 2,004.5 2,058.5 2,054.4 2,099.5 2,207.5 1,919.8 1,863.9 1,902.9 1,885.0 1,909.4 1,981.9 110.0 24.4 72.5
Fixed investment................ 2,086.1 1,952.6 1,998.7 2,058.5 2,119.2 2,168.0 1,897.1 1,811.3 1,842.2 1,884.7 1,921.5 1,940.0 142.0 36.8 18.5
Nonresidential................ 1,329.8 1,252.9 1,280.1 1,313.5 1,348.9 1,376.7 1,289.0 1,235.1 1,252.2 1,279.0 1,305.2 1,319.7 102.3 26.2 14.5
Structures.................. 335.1 309.8 315.9 325.6 340.2 359.0 253.4 252.3 251.0 252.7 254.1 256.0 5.0 1.4 1.9
Equipment and software...... 994.7 943.1 964.3 987.9 1,008.7 1,017.7 1,050.8 994.2 1,014.2 1,040.9 1,067.5 1,080.6 103.2 26.6 13.1
Information processing
equipment and software... 488.9 456.3 474.6 486.6 494.5 500.1 590.6 539.7 565.1 584.6 600.2 612.4 68.2 15.6 12.2
Computers and peripheral
equipment.............. 105.7 97.5 102.7 105.6 105.0 109.6 ..... ..... ..... ..... ..... ..... ..... ..... .....
Software................ 197.8 181.1 188.3 197.3 201.3 204.3 209.9 192.8 199.8 209.1 213.7 216.9 21.1 4.6 3.2
Other................... 185.4 177.8 183.6 183.6 188.2 186.2 198.7 190.3 196.3 196.5 202.1 200.1 9.8 5.6 -2.0
Industrial equipment...... 161.3 152.6 161.3 154.9 161.3 167.5 149.1 144.5 150.9 143.2 148.8 153.6 9.7 5.6 4.8
Transportation equipment.. 171.5 168.4 163.8 172.8 177.9 171.6 157.0 153.3 148.8 158.1 163.3 157.9 18.3 5.2 -5.4
Other equipment........... 172.9 165.8 164.6 173.7 175.0 178.5 159.9 158.0 153.9 160.6 161.1 163.9 9.9 .5 2.8
Residential................... 756.3 699.7 718.5 745.0 770.3 791.4 601.9 571.0 584.1 599.3 610.0 614.2 40.1 10.7 4.2
Change in private inventories... 18.9 51.9 59.9 -4.2 -19.7 39.4 20.3 50.1 58.2 -1.7 -13.3 37.9 -31.7 -11.6 51.2
Farm.......................... -8.4 -3.0 -6.5 -8.5 -9.5 -8.9 -3.7 -.2 -2.3 -4.2 -4.5 -3.7 -6.0 -.3 .8
Nonfarm....................... 27.2 54.8 66.4 4.3 -10.2 48.3 25.0 50.8 61.8 3.4 -8.1 43.0 -24.9 -11.5 51.1
Net exports of goods and services. -726.5 -685.4 -697.5 -691.0 -730.4 -787.1 -633.1 -634.1 -645.4 -614.2 -617.5 -655.2 -31.8 -3.3 -37.7
Exports......................... 1,301.2 1,217.1 1,253.2 1,297.1 1,314.6 1,339.8 1,195.3 1,144.5 1,165.3 1,195.4 1,202.7 1,217.6 77.4 7.3 14.9
Goods......................... 905.6 845.0 865.4 904.7 914.8 937.4 841.1 800.3 810.7 841.3 847.9 864.4 57.5 6.6 16.5
Services...................... 395.6 372.1 387.7 392.5 399.9 402.4 354.1 344.0 354.3 353.9 354.8 353.5 20.0 .9 -1.3
Imports......................... 2,027.7 1,902.5 1,950.6 1,988.1 2,045.1 2,126.9 1,828.3 1,778.6 1,810.7 1,809.6 1,820.2 1,872.9 109.1 10.6 52.7
Goods......................... 1,700.7 1,588.4 1,627.6 1,661.8 1,718.6 1,794.8 1,553.0 1,507.3 1,537.3 1,532.9 1,546.1 1,595.8 100.3 13.2 49.7
Services...................... 327.0 314.1 323.0 326.3 326.4 332.1 276.7 272.3 274.8 277.7 275.5 278.7 9.6 -2.2 3.2
Government consumption expenditures
and gross investment............. 2,362.9 2,260.0 2,302.0 2,337.6 2,392.7 2,419.6 1,987.1 1,962.8 1,971.9 1,984.1 1,998.1 1,994.1 34.8 14.0 -4.0
Federal......................... 877.7 840.8 860.2 869.8 892.2 888.5 740.5 727.6 731.8 736.1 749.5 744.6 16.8 13.4 -4.9
National defense.............. 587.1 562.0 575.3 582.5 601.7 589.1 493.6 483.7 487.3 491.7 503.6 492.0 12.3 11.9 -11.6
Consumption expenditures.... 515.9 490.1 508.9 512.3 528.6 514.0 424.1 413.4 421.9 422.9 432.2 419.6 10.8 9.3 -12.6
Gross investment............ 71.2 71.9 66.4 70.2 73.1 75.1 70.0 71.2 65.3 69.2 72.0 73.5 1.5 2.8 1.5
Nondefense.................... 290.6 278.8 285.0 287.3 290.5 299.4 246.6 243.6 244.3 244.2 245.6 252.5 4.4 1.4 6.9
Consumption expenditures.... 253.7 245.1 250.7 250.5 254.3 259.1 210.6 209.9 210.4 208.2 210.1 213.7 2.0 1.9 3.6
Gross investment............ 36.9 33.8 34.3 36.8 36.3 40.3 36.3 33.6 33.8 36.3 35.6 39.4 2.9 -.7 3.8
State and local................. 1,485.2 1,419.1 1,441.7 1,467.7 1,500.4 1,531.1 1,246.3 1,235.0 1,239.8 1,247.8 1,248.5 1,249.3 17.9 .7 .8
Consumption expenditures.... 1,193.0 1,143.1 1,159.0 1,175.7 1,205.7 1,231.7 991.1 984.8 986.8 988.8 993.3 995.6 11.6 4.5 2.3
Gross investment............ 292.2 276.1 282.7 292.0 294.7 299.4 255.4 250.3 253.2 259.4 255.4 253.7 6.5 -4.0 -1.7
Residual.......................... ..... ..... ..... ..... ..... ..... -63.6 -37.5 -48.0 -60.1 -69.6 -77.1 ..... ..... .....
Addenda:
Final sales of domestic product. 12,468.3 11,943.3 12,138.9 12,382.1 12,625.4 12,726.7 11,112.8 10,846.0 10,940.3 11,089.2 11,214.4 11,207.5 410.4 125.2 -6.9
Gross domestic purchases........ 13,213.7 12,680.6 12,896.3 13,069.0 13,336.1 13,553.3 11,759.1 11,522.0 11,635.4 11,694.8 11,811.2 11,895.0 410.4 116.4 83.8
Final sales to domestic
purchasers..................... 13,194.8 12,628.7 12,836.4 13,073.1 13,355.8 13,513.8 11,737.0 11,470.7 11,576.2 11,694.6 11,823.0 11,854.1 441.7 128.4 31.1
Gross domestic product.......... 12,487.1 11,995.2 12,198.8 12,378.0 12,605.7 12,766.1 11,134.8 10,897.1 10,999.3 11,089.2 11,202.3 11,248.3 379.1 113.1 46.0
Plus: Income receipts from
the rest of the world.......... 507.6 462.4 462.3 489.4 520.8 558.0 455.5 423.2 420.4 441.7 465.5 494.4 71.8 23.8 28.9
Less: Income payments to
the rest of the world.......... 474.0 425.6 422.9 453.9 476.6 542.6 423.7 388.5 383.3 408.2 424.4 478.9 90.2 16.2 54.5
Equals: Gross national product.. 12,520.8 12,032.0 12,238.2 12,413.5 12,650.0 12,781.6 11,166.4 10,931.8 11,036.3 11,122.5 11,243.2 11,263.5 360.7 120.7 20.3
Net domestic product............ 10,913.1 10,553.2 10,750.4 10,920.7 10,741.9 11,239.3 9,640.1 9,514.2 9,608.3 9,689.7 9,456.1 9,806.5 274.6 -233.6 350.4
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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 2005r I 02 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 05r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP). 2.0 2.6 2.8 1.7 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
Personal consumption expenditures... 1.9 2.6 2.8 .9 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
Durable goods..................... -3.5 -1.9 -.5 -3.2 -1.9 -1.8 -2.7 -4.3 -4.3 -4.4 -4.1 .1 -.1 -2.4 .6 .9 -.5 -3.0 -.8
Nondurable goods.................. 2.0 3.3 3.7 .2 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
Services.......................... 3.0 3.2 3.1 2.2 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
Gross private domestic investment... 1.6 3.1 3.1 -.2 .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
Fixed investment.................. 1.7 3.2 3.1 -.3 .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
Nonresidential.................. .3 1.3 2.1 -.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
Structures.................... 3.5 5.5 10.1 3.8 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
Equipment and software........ -.9 -.1 -.4 -1.5 -2.1 -2.0 -.3 -1.2 -1.4 .6 1.0 -.8 .2 -.9 -.4 .9 -.7 -1.8 -1.3
Residential..................... 4.8 6.7 4.8 -.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
Change in private inventories..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Net exports of goods and services... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Exports........................... 2.1 3.6 3.7 -1.1 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
Goods........................... 2.0 3.7 3.1 -1.4 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
Services........................ 2.5 3.1 5.0 -.3 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
Imports........................... 3.4 5.0 6.1 -1.7 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
Goods........................... 2.9 5.0 6.4 -2.0 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
Services........................ 5.8 4.9 4.6 -.3 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
Government consumption expenditures
and gross investment............... 3.7 3.7 4.8 5.2 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
Federal........................... 3.9 4.2 3.6 10.1 .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
National defense................ 4.4 4.0 3.6 9.1 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
Nondefense...................... 3.0 4.6 3.8 12.0 -.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
State and local................... 3.7 3.4 5.4 2.7 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
Addenda:
Final sales of domestic product... 2.0 2.6 2.8 1.7 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
Gross domestic purchases.......... 2.2 2.9 3.2 1.5 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
Final sales to domestic
purchasers....................... 2.2 2.9 3.2 1.5 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
Gross national product (GNP)...... 2.0 2.6 2.8 1.7 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
Implicit price deflators:
GDP............................. 2.0 2.6 2.8 1.5 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
Gross domestic purchases........ 2.2 2.9 3.2 1.3 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
GNP............................. 2.0 2.6 2.8 1.4 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
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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 2005r IV 04 I 05 II 05 III 05 IV 05r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product............. 105.130 109.562 113.424 111.003 112.044 112.959 114.112 114.580
Personal consumption expenditures.......... 108.416 112.601 116.582 114.236 115.217 116.176 117.338 117.598
Durable goods............................ 119.134 126.245 131.864 129.166 129.999 132.499 135.492 129.468
Nondurable goods......................... 107.938 113.000 118.008 114.857 116.351 117.392 118.413 119.875
Services................................. 106.493 109.725 112.919 111.027 111.789 112.440 113.353 114.094
Gross private domestic investment.......... 93.195 104.286 110.621 107.398 109.645 108.615 110.023 114.201
Fixed investment......................... 95.297 104.534 112.990 107.880 109.722 112.252 114.443 115.544
Nonresidential......................... 88.063 96.314 104.622 100.246 101.633 103.806 105.935 107.116
Structures........................... 77.621 79.314 80.925 80.554 80.145 80.680 81.123 81.753
Equipment and software............... 92.154 103.126 114.355 108.201 110.376 113.274 116.170 117.600
Residential............................ 113.989 125.714 134.678 127.772 130.695 134.100 136.484 137.434
Change in private inventories............ ..... ..... ..... ..... ..... ..... ..... .....
Exports of goods and services.............. 94.064 101.970 109.028 104.398 106.295 109.037 109.710 111.070
Imports of goods and services.............. 105.205 116.495 123.892 120.518 122.698 122.620 123.340 126.908
Government consumption expenditures and
gross investment.......................... 111.009 113.398 115.420 114.008 114.537 115.248 116.063 115.830
Federal.................................. 118.839 125.038 127.945 125.704 126.446 127.188 129.491 128.657
State and local.......................... 107.042 107.487 109.058 108.069 108.489 109.183 109.246 109.313
Addenda:
Final sales of domestic product.......... 105.564 109.650 113.856 111.122 112.088 113.613 114.896 114.825
Gross domestic purchases................. 106.285 111.301 115.325 113.000 114.112 114.695 115.836 116.658
Final sales to domestic purchasers....... 106.708 111.394 115.750 113.124 114.164 115.332 116.598 116.905
Gross national product................... 105.370 109.637 113.296 110.916 111.977 112.851 114.076 114.282
-----------------------------------------------------------------------------------------------------------------------------------
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 2005r IV 04 I 05 II 05 III 05 IV 05r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product............. 106.310 109.102 112.176 110.111 110.950 111.655 112.567 113.532
Personal consumption expenditures
(PCE)..................................... 105.520 108.246 111.313 109.326 109.936 110.832 111.846 112.637
Durable goods............................ 92.372 90.631 90.168 90.449 90.648 90.527 89.839 89.659
Nondurable goods......................... 104.151 107.634 111.596 108.982 109.327 110.854 112.985 113.218
Services................................. 109.246 112.695 116.195 113.955 114.803 115.633 116.508 117.834
Gross private domestic investment.......... 103.311 106.555 109.836 107.733 108.427 109.164 110.169 111.586
Fixed investment......................... 103.432 106.697 109.970 107.831 108.522 109.254 110.318 111.787
Nonresidential......................... 99.764 101.025 103.161 101.455 102.244 102.715 103.358 104.327
Structures........................... 113.889 120.124 132.228 122.827 125.876 128.886 133.914 140.234
Equipment and software............... 95.133 95.022 94.661 94.854 95.067 94.910 94.491 94.174
Residential............................ 112.379 119.935 125.661 122.574 123.062 124.359 126.335 128.889
Change in private inventories............ ..... ..... ..... ..... ..... ..... ..... .....
Exports of goods and services.............. 101.398 104.999 108.867 106.366 107.559 108.534 109.323 110.052
Imports of goods and services.............. 99.610 104.571 110.937 107.026 107.783 109.925 112.413 113.626
Government consumption expenditures and
gross investment.......................... 109.460 113.505 118.915 115.148 116.747 117.820 119.751 121.343
Federal.................................. 109.740 114.354 118.525 115.575 117.550 118.168 119.056 119.327
State and local.......................... 109.303 113.022 119.170 114.914 116.291 117.635 120.186 122.568
Addenda:
PCE excluding food and energy............ 105.082 107.156 109.311 107.980 108.617 109.083 109.450 110.095
Market-based PCE\1\...................... 105.009 107.422 110.336 108.378 108.948 109.860 110.917 111.619
Market-based PCE excluding food
and energy\1\........................... 104.348 105.898 107.678 106.514 107.106 107.506 107.797 108.302
Final sales of domestic product.......... 106.330 109.124 112.196 110.124 110.963 111.667 112.589 113.563
Gross domestic purchases................. 105.863 108.899 112.401 110.092 110.883 111.785 112.953 113.981
Final sales to domestic purchasers....... 105.883 108.921 112.421 110.106 110.898 111.798 112.976 114.013
Gross national product................... 106.304 109.094 112.158 110.100 110.933 111.638 112.550 113.514
Implicit price deflators:
Gross domestic product................. 106.305 109.099 112.145 110.077 110.905 111.622 112.527 113.494
Final sales of domestic product........ 106.330 109.124 112.197 110.117 110.956 111.659 112.582 113.556
Gross domestic purchases............... 105.858 108.896 112.370 110.055 110.837 111.750 112.911 113.941
Final sales to domestic purchasers..... 105.883 108.920 112.421 110.095 110.886 111.787 112.965 114.001
Gross national product................. 106.299 109.091 112.129 110.064 110.890 111.607 112.512 113.477
-----------------------------------------------------------------------------------------------------------------------------------
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 2005r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
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 1.4
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
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
r Revised
Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
I 02 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 05r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP).... 1.0 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
Personal consumption expenditures
(PCE)................................. 2.8 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
Durable goods........................ 7.8 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
Nondurable goods..................... 2.6 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
Services............................. 1.8 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
Gross private domestic investment...... -7.7 -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
Fixed investment..................... -7.6 -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
Nonresidential..................... -11.7 -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
Structures....................... -13.9 -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
Equipment and software........... -10.9 -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
Residential........................ 3.4 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
Change in private inventories........ ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Net exports of goods and services...... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... .....
Exports.............................. -9.5 -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
Goods.............................. -12.2 -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
Services........................... -2.8 -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
Imports.............................. -4.1 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
Goods.............................. -5.0 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
Services........................... .7 -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
Government consumption expenditures
and gross investment.................. 4.7 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
Federal.............................. 5.9 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
National defense................... 5.6 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
Nondefense......................... 6.3 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
State and local...................... 4.1 2.6 3.6 2.1 1.1 .7 .8 .0 .0 .5 .2 .9 1.5 1.7 1.5 1.2
Addenda:
Final sales of domestic product...... 1.0 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
Gross domestic purchases............. 1.4 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
Final sales to domestic purchasers... 1.4 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
Gross national product............... .9 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
Real disposable personal income...... 3.7 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 .5
Price indexes:
Gross domestic purchases........... 1.3 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
Gross domestic purchases excluding
food and energy................... 2.0 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
GDP................................ 2.0 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
GDP excluding food and energy...... 2.3 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
PCE................................ 1.2 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
PCE excluding food and energy...... 1.8 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
Market-based PCE\1\................ .7 .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
Market-based PCE excluding food
and energy\1\..................... 1.5 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
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
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 2005r IV 04 I 05 II 05 III 05 IV 05r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product..................... 10,971.2 11,734.3 12,487.1 11,995.2 12,198.8 12,378.0 12,605.7 12,766.1
Plus: Income receipts from the rest of the
world..................................... 343.7 415.4 507.6 462.4 462.3 489.4 520.8 558.0
Less: Income payments to the rest of the
world..................................... 275.6 361.7 474.0 425.6 422.9 453.9 476.6 542.6
Equals: Gross national product............. 11,039.3 11,788.0 12,520.8 12,032.0 12,238.2 12,413.5 12,650.0 12,781.6
Less: Consumption of fixed capital......... 1,331.3 1,435.3 1,574.1 1,442.0 1,448.4 1,457.2 1,863.8 1,526.9
Less: Statistical discrepancy.............. 47.1 76.8 42.8 30.6 39.4 78.3 44.3 9.2
Equals: National income.................... 9,660.9 10,275.9 10,903.9 10,559.3 10,750.4 10,878.0 10,741.9 11,245.5
Compensation of employees................ 6,321.1 6,687.6 7,125.3 6,895.8 7,001.7 7,060.2 7,177.6 7,261.7
Wage and salary accruals............... 5,111.1 5,389.4 5,723.7 5,562.9 5,629.9 5,672.3 5,762.3 5,830.1
Supplements to wages and salaries...... 1,210.0 1,298.1 1,401.6 1,332.9 1,371.8 1,387.9 1,415.3 1,431.6
Proprietors' income with inventory
valuation and capital consumption
adjustments............................. 810.2 889.6 938.7 900.9 917.9 936.6 932.4 967.7
Rental income of persons with capital
consumption adjustment.................. 131.7 134.2 72.9 128.7 118.0 104.4 -11.1 80.3
Corporate profits with inventory
valuation and capital consumption
adjustments............................. 1,031.8 1,161.5 1,351.9 1,219.5 1,288.2 1,347.5 1,293.1 1,478.9
Net interest and miscellaneous payments.. 528.5 505.5 498.3 492.7 498.3 488.7 497.6 508.5
Taxes on production and imports less
subsidies............................... 754.8 809.4 848.0 824.4 833.2 848.0 853.4 857.2
Business current transfer payments....... 81.6 91.1 80.2 102.6 99.0 99.6 21.8 100.3
Current surplus of government
enterprises............................. 1.3 -3.0 -11.3 -5.2 -6.1 -7.0 -22.8 -9.1
Addendum:
Gross domestic income.................... 10,924.2 11,657.5 12,444.4 11,964.6 12,159.4 12,299.7 12,561.4 12,757.0
-----------------------------------------------------------------------------------------------------------------------------------
r Revised
Table 10.--Personal Income and Its Disposition
[Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
Seasonally adjusted at annual rates
---------------------------------------------------
2003 2004 2005r IV 04 I 05 II 05 III 05 IV 05r
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\......................... 9,169.1 9,713.3 10,248.3 10,024.8 10,073.4 10,185.7 10,250.4 10,483.7
Compensation of employees, received...... 6,321.1 6,687.6 7,125.3 6,895.8 7,001.7 7,060.2 7,177.6 7,261.7
Wage and salary disbursements.......... 5,111.1 5,389.4 5,723.7 5,562.9 5,629.9 5,672.3 5,762.3 5,830.1
Supplements to wages and salaries...... 1,210.0 1,298.1 1,401.6 1,332.9 1,371.8 1,387.9 1,415.3 1,431.6
Proprietors' income with inventory
valuation and capital consumption
adjustments............................. 810.2 889.6 938.7 900.9 917.9 936.6 932.4 967.7
Farm................................... 27.7 35.8 20.8 24.6 24.7 19.6 18.0 21.0
Nonfarm................................ 782.4 853.8 917.8 876.3 893.2 917.1 914.3 946.7
Rental income of persons with capital
consumption adjustment.................. 131.7 134.2 72.9 128.7 118.0 104.4 -11.1 80.3
Personal income receipts on assets....... 1,338.7 1,396.5 1,457.4 1,493.6 1,407.9 1,439.8 1,468.9 1,512.9
Personal interest income............... 917.6 905.9 945.7 907.4 915.4 936.0 951.2 980.1
Personal dividend income............... 421.1 490.6 511.7 586.2 492.5 503.8 517.6 532.9
Personal current transfer receipts....... 1,344.0 1,427.5 1,525.3 1,449.2 1,488.8 1,509.6 1,558.1 1,544.7
Less: Contributions for government
social insurance........................ 776.6 822.2 871.2 843.5 861.0 864.9 875.4 883.6
Less: Personal current taxes............... 999.9 1,049.1 1,209.7 1,094.3 1,171.4 1,206.0 1,220.4 1,241.0
Equals: Disposable personal income......... 8,169.2 8,664.2 9,038.6 8,930.4 8,902.0 8,979.7 9,030.0 9,242.7
Less: Personal outlays..................... 7,996.3 8,512.5 9,072.1 8,725.0 8,854.6 9,001.2 9,173.9 9,258.5
Equals: Personal saving.................... 172.8 151.8 -33.5 205.4 47.4 -21.5 -143.9 -15.8
Personal saving as a percentage of
disposable personal income.............. 2.1 1.8 -.4 2.3 .5 -.2 -1.6 -.2
Addendum:
Disposable personal income, billions of
chained (2000) dollars\2\............... 7,741.8 8,004.3 8,120.0 8,169.2 8,098.1 8,102.6 8,074.2 8,206.4
-----------------------------------------------------------------------------------------------------------------------------------
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 IV 04 I 05 II 05 III 05 IV 05 2004 2005 I 05 II 05 III 05 IV 05 IV 05
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
valuation and capital consumption
adjustments......................... 1,031.8 1,161.5 1,351.9 1,219.5 1,288.2 1,347.5 1,293.1 1,478.9 12.6 16.4 5.6 4.6 -4.0 14.4 21.3
Less: Taxes on corporate income...... 232.1 271.1 378.1 293.0 362.6 372.5 360.3 417.1 16.8 39.5 23.7 2.7 -3.3 15.8 42.3
Equals: Profits after tax with
inventory valuation and capital
consumption adjustments............. 799.7 890.3 973.8 926.4 925.6 975.0 932.8 1,061.8 11.3 9.4 -.1 5.3 -4.3 13.8 14.6
Net dividends...................... 423.2 493.0 514.2 589.3 494.9 506.3 520.1 535.4 16.5 4.3 -16.0 2.3 2.7 2.9 -9.1
Undistributed profits with
inventory valuation and capital
consumption adjustments........... 376.5 397.3 459.6 337.2 430.7 468.7 412.6 526.4 5.5 15.7 27.7 8.8 -12.0 27.6 56.1
Cash flow:
Net cash flow with inventory
valuation and capital consumption
adjustments....................... 1,130.8 1,196.9 1,303.3 1,143.8 1,239.2 1,280.9 1,324.9 1,368.0 5.8 8.9 8.3 3.4 3.4 3.3 19.6
Undistributed profits with
inventory valuation and capital
consumption adjustments......... 376.5 397.3 459.6 337.2 430.7 468.7 412.6 526.4 5.5 15.7 27.7 8.8 -12.0 27.6 56.1
Consumption of fixed capital..... 754.4 799.6 843.6 806.7 808.5 812.2 912.3 841.6 6.0 5.5 .2 .5 12.3 -7.7 4.3
Less: Inventory valuation
adjustment........................ -13.3 -39.6 -31.5 -44.4 -39.1 -18.9 -27.5 -40.4 ..... ..... ..... ..... ..... ..... .....
Equals: Net cash flow.............. 1,144.1 1,236.6 1,334.7 1,188.3 1,278.3 1,299.8 1,352.4 1,408.5 8.1 7.9 7.6 1.7 4.0 4.1 18.5
Addenda:
Profits before tax (without
inventory valuation and capital
consumption adjustments).......... 937.2 1,059.3 1,438.3 1,124.1 1,378.3 1,412.2 1,392.6 1,570.1 13.0 35.8 22.6 2.5 -1.4 12.7 39.7
Profits after tax (without
inventory valuation and capital
consumption adjustments).......... 705.1 788.2 1,060.2 831.1 1,015.7 1,039.7 1,032.3 1,153.0 11.8 34.5 22.2 2.4 -.7 11.7 38.7
Inventory valuation adjustment..... -13.3 -39.6 -31.5 -44.4 -39.1 -18.9 -27.5 -40.4 ..... ..... ..... ..... ..... ..... .....
Capital consumption adjustment..... 107.9 141.8 -54.9 139.8 -51.0 -45.8 -72.1 -50.7 31.4 -138.7 -136.5 -10.1 57.3 -29.6 -136.3
-------------------------------------------------------------------------------------------------------------------------------------------------------------
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 IV 04 I 05 II 05 III 05 IV 05 2004 2005 I 05 II 05 III 05 IV 05
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
valuation and capital consumption
adjustments............................. 1,031.8 1,161.5 1,351.9 1,219.5 1,288.2 1,347.5 1,293.1 1,478.9 129.7 190.4 68.7 59.3 -54.4 185.8
Domestic industries.......................... 855.8 976.6 1,146.3 1,040.9 1,094.8 1,150.3 1,069.9 1,270.3 120.8 169.7 53.9 55.5 -80.4 200.4
Financial.................................. 330.9 322.7 347.7 341.6 377.6 350.7 278.8 383.7 -8.2 25.0 36.0 -26.9 -71.9 104.9
Nonfinancial............................... 524.9 653.9 798.6 699.3 717.1 799.6 791.1 886.6 129.0 144.7 17.8 82.5 -8.5 95.5
Rest of the world............................ 176.0 184.9 205.6 178.6 193.5 197.2 223.1 208.6 8.9 20.7 14.9 3.7 25.9 -14.5
Receipts from the rest of the world........ 255.7 309.5 334.2 332.6 313.5 328.2 338.3 356.6 53.8 24.7 -19.1 14.7 10.1 18.3
Less: Payments to the rest of the world.... 79.7 124.6 128.5 154.0 120.1 131.0 115.1 148.0 44.9 3.9 -33.9 10.9 -15.9 32.9
Corporate profits with inventory
valuation adjustment.................... 923.9 1,019.7 1,406.8 1,079.7 1,339.2 1,393.3 1,365.1 1,529.7 95.8 387.1 259.5 54.1 -28.2 164.6
Domestic industries.......................... 747.9 834.8 1,201.2 901.1 1,145.7 1,196.1 1,142.0 1,321.1 86.9 366.4 244.6 50.4 -54.1 179.1
Financial.................................. 313.0 300.6 347.0 319.4 377.2 349.5 278.7 382.7 -12.4 46.4 57.8 -27.7 -70.8 104.0
Federal Reserve banks.................... 20.2 20.3 26.8 22.2 23.1 26.2 27.0 30.8 .1 6.5 .9 3.1 .8 3.8
Other financial.......................... 292.8 280.3 320.3 297.1 354.2 323.2 251.7 352.0 -12.5 40.0 57.1 -31.0 -71.5 100.3
Nonfinancial............................... 434.9 534.2 854.2 581.7 768.5 846.6 863.3 938.3 99.3 320.0 186.8 78.1 16.7 75.0
Utilities................................ 11.4 12.1 27.4 14.1 23.7 26.4 19.7 39.6 .7 15.3 9.6 2.7 -6.7 19.9
Manufacturing............................ 80.7 118.9 207.9 154.7 170.2 204.7 218.6 238.3 38.2 89.0 15.5 34.5 13.9 19.7
Durable goods.......................... -4.1 34.8 55.9 58.8 35.5 59.9 62.0 66.2 38.9 21.1 -23.3 24.4 2.1 4.2
Fabricated metal products............ 8.5 10.3 12.4 13.1 8.8 11.4 15.7 13.6 1.8 2.1 -4.3 2.6 4.3 -2.1
Machinery............................ 1.4 1.0 4.7 -2.6 .9 2.9 7.6 7.2 -.4 3.7 3.5 2.0 4.7 -.4
Computer and electronic products..... -16.1 -3.2 5.0 -.2 .5 4.2 6.7 8.5 12.9 8.2 .7 3.7 2.5 1.8
Electrical equipment, appliances,
and components...................... 1.9 .3 4.5 6.8 -1.3 5.5 8.6 5.2 -1.6 4.2 -8.1 6.8 3.1 -3.4
Motor vehicles, bodies and trailers,
and parts........................... -11.6 -3.4 -22.2 1.3 -20.8 -15.7 -25.3 -27.0 8.2 -18.8 -22.1 5.1 -9.6 -1.7
Other durable goods.................. 11.9 29.9 51.6 40.5 47.3 51.6 48.8 58.7 18.0 21.7 6.8 4.3 -2.8 9.9
Nondurable goods....................... 84.8 84.0 152.0 95.9 134.7 144.8 156.6 172.1 -.8 68.0 38.8 10.1 11.8 15.5
Food and beverage and tobacco
products............................ 23.5 24.0 39.8 20.5 39.6 37.7 40.8 41.1 .5 15.8 19.1 -1.9 3.1 .3
Petroleum and coal products.......... 23.6 31.0 70.2 49.2 62.8 66.3 70.8 80.7 7.4 39.2 13.6 3.5 4.5 9.9
Chemical products.................... 20.8 13.5 21.4 8.4 18.8 20.5 22.7 23.4 -7.3 7.9 10.4 1.7 2.2 .7
Other nondurable goods............... 16.9 15.6 20.7 17.8 13.5 20.3 22.3 26.9 -1.3 5.1 -4.3 6.8 2.0 4.6
Wholesale trade.......................... 56.3 63.5 93.9 66.9 81.4 98.1 95.4 100.6 7.2 30.4 14.5 16.7 -2.7 5.2
Retail trade............................. 87.7 90.0 115.2 87.7 104.6 109.1 116.9 130.4 2.3 25.2 16.9 4.5 7.8 13.5
Transportation and warehousing........... 8.1 8.4 28.2 1.7 22.9 27.9 32.9 29.1 .3 19.8 21.2 5.0 5.0 -3.8
Information.............................. -1.9 17.0 51.1 21.0 46.7 53.5 50.2 54.0 18.9 34.1 25.7 6.8 -3.3 3.8
Other nonfinancial....................... 192.4 224.3 330.4 235.6 318.9 326.9 329.6 346.4 31.9 106.1 83.3 8.0 2.7 16.8
Rest of the world............................ 176.0 184.9 205.6 178.6 193.5 197.2 223.1 208.6 8.9 20.7 14.9 3.7 25.9 -14.5
-------------------------------------------------------------------------------------------------------------------------------------------------------------
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 2005r IV 04 I 05 II 05 III 05 IV 05r
-----------------------------------------------------------------------------------------------------------------------------------
Billions of dollars
----------------------------------------------------------------------------------------
Gross value added of nonfinancial
corporate business.................... 5,595.7 5,995.4 6,474.0 6,198.9 6,282.8 6,414.0 6,528.0 6,671.4
Consumption of fixed capital............... 652.6 690.3 729.1 696.2 697.5 700.4 792.8 725.7
Net value added............................ 4,943.1 5,305.1 5,744.9 5,502.8 5,585.3 5,713.6 5,735.2 5,945.7
Compensation of employees................ 3,703.2 3,906.8 4,182.0 4,042.0 4,105.4 4,140.5 4,214.7 4,267.4
Wage and salary accruals............... 3,007.8 3,168.6 3,383.4 3,284.5 3,323.6 3,349.9 3,408.6 3,451.6
Supplements to wages and salaries...... 695.4 738.3 798.6 757.5 781.8 790.6 806.1 815.9
Taxes on production and imports less
subsidies............................... 486.5 519.1 549.7 529.9 537.7 547.9 553.7 559.8
Net operating surplus.................... 753.4 879.2 1,013.2 930.9 942.2 1,025.2 966.8 1,118.5
Net interest and miscellaneous
payments.............................. 166.2 164.9 171.5 162.1 167.0 167.3 172.8 179.0
Business current transfer payments..... 62.4 60.4 43.1 69.5 58.0 58.4 2.9 52.9
Corporate profits with inventory
valuation and capital consumption
adjustments........................... 524.9 653.9 798.6 699.3 717.1 799.6 791.1 886.6
Taxes on corporate income............ 126.5 165.9 254.7 180.8 231.9 248.6 258.0 280.3
Profits after tax with inventory
valuation and capital consumption
adjustments......................... 398.3 487.9 543.9 518.5 485.2 550.9 533.1 606.3
Net dividends...................... 295.5 361.2 252.5 465.0 306.7 297.6 181.7 224.0
Undistributed profits with
inventory valuation and capital
consumption adjustments........... 102.8 126.7 291.4 53.5 178.5 253.4 351.4 382.3
Addenda:
Profits before tax (without inventory
valuation and capital consumption
adjustments)............................ 448.1 573.9 885.7 626.1 807.6 865.5 890.8 978.8
Profits after tax (without inventory
valuation and capital consumption
adjustments)............................ 321.6 407.9 630.9 445.3 575.6 616.9 632.8 698.5
Inventory valuation adjustment........... -13.3 -39.6 -31.5 -44.4 -39.1 -18.9 -27.5 -40.4
Capital consumption adjustment........... 90.0 119.7 -55.6 117.6 -51.3 -47.0 -72.2 -51.7
----------------------------------------------------------------------------------------
Billions of chained (2000) dollars
----------------------------------------------------------------------------------------
Gross value added of nonfinancial
corporate business\1\................. 5,418.2 5,714.1 6,085.3 5,895.9 5,943.3 6,046.0 6,121.9 6,230.2
Consumption of fixed capital\2\............ 629.4 656.5 686.9 657.3 660.2 663.6 745.2 678.6
Net value added\3\......................... 4,788.8 5,057.6 5,398.4 5,238.6 5,283.1 5,382.4 5,376.6 5,551.5
----------------------------------------------------------------------------------------
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 1.051 1.057 1.061 1.066 1.071
Compensation of employees (unit labor
cost)................................... .683 .684 .687 .686 .691 .685 .688 .685
Unit nonlabor cost....................... .252 .251 .245 .247 .245 .244 .249 .243
Consumption of fixed capital........... .120 .121 .120 .118 .117 .116 .130 .116
Taxes on production and imports less
subsidies plus business current
transfer payments..................... .101 .101 .097 .102 .100 .100 .091 .098
Net interest and miscellaneous payments .031 .029 .028 .027 .028 .028 .028 .029
Corporate profits with inventory valuation
and capital consumption adjustments (unit
profits from current production)........ .097 .114 .131 .119 .121 .132 .129 .142
Taxes on corporate income.............. .023 .029 .042 .031 .039 .041 .042 .045
Profits after tax with inventory
valuation and capital consumption
adjustments........................... .074 .085 .089 .088 .082 .091 .087 .097
-----------------------------------------------------------------------------------------------------------------------------------
r Revised. Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the third
quarter of 2005.
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 2005r I 02 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 05r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
related aggregates:
GDP............................... 2.7 4.2 3.5 2.7 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
Goods............................. 3.4 6.5 4.7 3.9 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
Services.......................... 2.2 2.7 2.7 2.5 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
Structures........................ 3.2 5.7 4.8 -.1 -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
Motor vehicle output.............. 3.8 4.6 3.4 15.5 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
GDP excuding motor vehicle
output........................... 2.7 4.2 3.5 2.3 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
Final sales of computers\1\....... 20.2 20.4 39.6 -7.6 .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
GDP excluding final sales of
computers........................ 2.6 4.1 3.3 2.8 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
Farm gross value added\2\......... 8.4 .0 -8.0 -64.0 133.6 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
Nonfarm business gross value
added\3\......................... 3.3 4.8 4.2 3.5 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
Price indexes:
GDP............................... 2.0 2.6 2.8 1.7 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
GDP excluding food and energy..... 1.8 2.5 2.7 2.1 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
GDP excluding final sales of
computers........................ 2.2 2.7 3.0 1.9 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
Gross domestic purchases.......... 2.2 2.9 3.2 1.5 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
Gross domestic purchases excluding
food and energy.................. 1.8 2.4 2.5 1.8 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
Gross domestic purchases excluding
final sales of computers to
domestic purchasers.............. 2.4 3.0 3.4 1.7 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
Personal consumption expenditures
(PCE)............................ 1.9 2.6 2.8 .9 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
Personal consumption expenditures
excluding food and energy........ 1.3 2.0 2.0 1.3 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
Market-based PCE\4\............... 1.9 2.3 2.7 .6 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
Market-based PCE excluding food
and energy\4\.................... 1.2 1.5 1.7 .9 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
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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.