News Release

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, THURSDAY, DECEMBER 21, 2006
BEA 06-58

Gross Domestic Product: Third Quarter 2006 "final" estimates

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Virginia H. Mannering:  (202)   606-5304   (GDP)                                       BEA 06-58
Greg Key:               (202)   606-9727   (Profits)
Recorded message:       (202)   606-5306


                  GROSS DOMESTIC PRODUCT:  THIRD QUARTER 2006 (FINAL)
                     CORPORATE PROFITS:  THIRD 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 2.0 percent in the third quarter of 2006, 
according to final estimates released by the Bureau of Economic Analysis.  In the second quarter, real 
GDP increased 2.6 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      
2.2 percent (see "Revisions" on page 3).

	The increase in real GDP in the third quarter primarily reflected positive contributions from 
personal consumption expenditures (PCE), exports, equipment and software, nonresidential structures, 
and state and local government spending that were partly offset by a negative contribution from 
residential fixed investment.  Imports, which are a subtraction in the calculation of GDP, increased.

	The deceleration in real GDP growth in the third quarter primarily reflected an acceleration in 
imports, a larger decrease in residential fixed investment, and decelerations in PCE for services, in 
private inventory investment, and in state and local government spending that were partly offset by 
upturns in equipment and software, in PCE for durable goods, and in federal government spending.

	Final sales of computers contributed 0.07 percentage point to the third-quarter growth in real GDP 
after contributing 0.04 percentage point to the second-quarter growth.  Motor vehicle output contributed 
0.76 percentage point to the third-quarter growth in real GDP after subtracting 0.31 percentage point 
from the second-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 are annualized.  ?Real? estimates are in chained (2000) 
dollars.  Prices indexes are chain-type measures.


                     This news 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 2.2 percent in the third quarter, 0.1 percentage point more than in the preliminary estimate; 
this index increased 4.0 percent in the second quarter.  Excluding food and energy prices, the price index 
for gross domestic purchases increased 2.2 percent in the third quarter, compared with 2.9 percent in the 
second. 

	Real personal consumption expenditures increased 2.8 percent in the third quarter, compared with 
an increase of 2.6 percent in the second.  Real nonresidential fixed investment increased 10.0 percent, 
compared with an increase of 4.4 percent.  Nonresidential structures increased 15.7 percent, compared 
with an increase of 20.3 percent.  Equipment and software increased 7.7 percent, in contrast to a 
decrease of 1.4 percent.  Real residential fixed investment decreased 18.7 percent, compared with a 
decrease of 11.1 percent.

	Real exports of goods and services increased 6.8 percent in the third quarter, compared with an 
increase of 6.2 percent in the second.  Real imports of goods and services increased 5.6 percent, 
compared with an increase of 1.4 percent.

	Real federal government consumption expenditures and gross investment increased 1.3 percent in 
the third quarter, in contrast to a decrease of 4.5 percent in the second.  National defense decreased 1.2 
percent, compared with a decrease of 2.0 percent.  Nondefense increased 6.5 percent, in contrast to a 
decrease of 9.3 percent.  Real state and local government consumption expenditures and gross 
investment increased 1.9 percent, compared with an increase of 4.0 percent.

	The real change in private inventories added 0.06 percentage point to the third-quarter change in 
real GDP, after adding 0.44 percentage point to the second-quarter change.  Private businesses increased 
inventories $55.4 billion in the third quarter, following increases of $53.7 billion in the second quarter 
and $41.2 billion in the first.

	Real final sales of domestic product -- GDP less change in private inventories -- increased 1.9 
percent in the third quarter, compared with an increase of 2.1 percent in the second.


Gross domestic purchases

	Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever 
produced -- increased 2.0 percent in the third quarter, the same increase as in the second. 


Gross national product

	Real gross national product -- the goods and services produced by the labor and property supplied 
by U.S. residents -- increased 1.8 percent in the third quarter, compared with an increase of 2.3 percent 
in the second.  GNP includes, and GDP excludes, net receipts of income from the rest of the world, 
which decreased $5.5 billion in the third quarter after decreasing $5.6 billion in the second; in the third 
quarter, receipts increased $15.1 billion, and payments increased $20.6 billion.


Current-dollar GDP

	Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 
3.8 percent, or $125.3 billion, in the third quarter to a level of $13,322.6 billion.  In the second quarter, 
current-dollar GDP increased 5.9 percent, or $188.9 billion.


Revisions

	The final estimate of the third-quarter increase in real GDP is 0.2 percentage point, or $7.0 billion, 
lower than the preliminary estimate issued last month.  The downward revision to the percent change in 
real GDP primarily reflected a downward revision to personal consumption expenditures for services.


                                            Advance     Preliminary     Final
                                         (Percent change from preceding quarter)

Real GDP...............................       1.6            2.2          2.0
Current-dollar GDP.....................       3.4            4.0          3.8
Gross domestic purchases price index...       2.0            2.1          2.2




Corporate Profits

	Profits from current production (corporate profits with inventory valuation and capital 
consumption adjustments) increased $61.5 billion in the third quarter, compared with an increase of 
$22.7 billion in the second quarter.  Current-production cash flow (net cash flow with inventory 
valuation and capital consumption adjustments) -- the internal funds available to corporations for 
investment -- increased $30.2 billion in the third quarter, compared with an increase of $1.1 billion in 
the second.

	Taxes on corporate income increased $14.5 billion in the third quarter, compared with an increase 
of $19.2 billion in the second.  Profits after tax with inventory valuation and capital consumption 
adjustments increased $47.0 billion, compared with an increase of $3.6 billion.  Dividends increased 
$19.3 billion, compared with an increase of $15.4 billion; current-production undistributed profits 
increased $27.8 billion, in contrast to a decrease of $11.8 billion.

	Domestic profits of financial corporations decreased $9.1 billion in the third quarter, in contrast to 
an increase of $41.7 billion in the second.  Domestic profits of nonfinancial corporations increased $75.8 
billion in the third quarter, in contrast to a decrease of $32.8 billion in the second.  In the third quarter, 
real gross corporate value added and profits per unit of real value added increased.  The increase in unit 
profits reflected a slight increase in unit prices and decreases in both the unit labor and nonlabor costs 
corporations incurred. 

        The rest-of-the-world component of profits decreased $5.3 billion in the third quarter, in contrast
to an increase of $13.8 billion in the second.  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 third-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 corporations decreased, while domestic profits of nonfinancial 
corporations increased.  The increase in nonfinancial corporations primarily reflected increases in 
manufacturing, in wholesale trade, in retail trade, and in utilities that were partly offset by decreases in 
"other" nonfinancial industries and in information. Within manufacturing, the increase reflected
increases in all the industries shown except chemical products and "other" nondurable goods; the largest
increase was in "other" durable goods.

	Profits before tax increased $42.5 billion in the third quarter, compared with an increase of $70.9 
billion in the second.  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 decreased $1.6 billion in the third quarter (from -$160.8 billion to -$162.4 billion), compared 
with a decrease of $12.2 billion in the second.  The inventory valuation adjustment increased $20.7 
billion (from -$58.9 billion to -$38.2 billion), in contrast to a decrease of $36.0 billion. 

         Effective with this release, chained-dollar gross value added of nonfinancial corporate business 
was revised beginning with 2003.  The current-dollar gross value added is deflated by a revised chain-
type price index calculated using the gross value added chain-type index for nonfinancial industries from 
the annual revision of the GDP-by-industry accounts.
 


     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.
     

                                 *          *          *


                    Next release -- January 31, 2007, at 8:30 A.M. EST for:
                    Gross Domestic Product:  Fourth Quarter 2006 (Advance)
 


Release dates in 2007   


Gross domestic product

                    2006: IV and 2006 annual    2007: I      2007: II        2007: III
Advance...........       January 31             April 27     July 27         October 31
Preliminary.......       February 28            May 31       August 30       November 29
Final.............       March 29               June 28      September 27    December 20

Corporate Profits 

Preliminary.......         ....                 May 31       August 30       November 29
Final.............       March 29               June 28      September 27    December 20
                                                                               


                                      - more -


                                    Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2003   2004   2005  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 06  II 06 III 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.5    3.9    3.2     .2    1.2    3.5    7.5    2.7    3.9    4.0    3.1    2.6    3.4    3.3    4.2    1.8    5.6    2.6    2.0

Personal consumption expenditures...    2.8    3.9    3.5    1.4    2.1    3.6    5.8    2.3    4.7    2.9    3.9    4.3    2.7    4.2    3.9     .8    4.8    2.6    2.8
  Durable goods.....................    5.8    6.4    5.5   -5.2     .4   16.8   16.7     .7    6.1    1.7    8.7    6.1    2.4   12.8    9.0  -12.3   19.8    -.1    6.4
  Nondurable goods..................    3.2    3.6    4.5    3.6    3.8    2.3    7.7    1.8    4.3    1.7    3.7    5.4    5.2    4.9    3.4    3.9    5.9    1.4    1.5
  Services..........................    1.9    3.5    2.6    1.8    1.5    1.8    2.9    2.8    4.6    3.8    3.1    3.4    1.6    2.3    3.2    2.0    1.6    3.7    2.8

Gross private domestic investment...    3.6    9.8    5.4   -1.0   -1.3    3.3   17.7    9.3    4.8   21.7    2.0    5.1    8.2   -3.6    5.2   16.2    7.8    1.0    -.8
  Fixed investment..................    3.4    7.3    7.5   -1.4    -.4   10.6   13.6    5.5    2.2   11.7    7.6    4.9    7.8   10.5    6.3    2.8    8.2   -1.6   -1.2
    Nonresidential..................    1.0    5.9    6.8   -5.0   -2.6   10.7    9.4    2.8    1.7    7.2   10.3    8.3    6.0    5.2    5.9    5.2   13.7    4.4   10.0
      Structures....................   -4.1    2.2    1.1   -5.3   -6.9   14.7    -.8   -4.7    3.3    6.9    3.1   -2.0    5.3   -2.0   -7.0   12.0    8.7   20.3   15.7
      Equipment and software........    2.8    7.3    8.9   -4.9   -1.0    9.3   13.2    5.6    1.2    7.3   13.0   12.3    6.3    7.9   11.0    2.8   15.6   -1.4    7.7
    Residential.....................    8.4    9.9    8.6    6.4    4.1   10.5   22.2   10.6    3.1   19.8    3.2    -.6   11.1   20.0    7.1    -.9    -.3  -11.1  -18.7
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    1.3    9.2    6.8   -3.1   -5.3   -1.7   11.4   20.8    7.2    6.2    4.8    9.9    4.7    9.4    3.2    9.6   14.0    6.2    6.8
    Goods...........................    1.8    9.0    7.5   -9.1    2.0   -1.2    8.8   19.8    7.1    6.4    8.3    6.1    5.5   12.8    3.7   11.5   17.3    6.0    9.4
    Services........................     .0    9.7    5.1   11.7  -20.0   -2.8   17.5   23.1    7.5    5.6   -2.8   19.2    2.9    2.0    2.1    5.5    6.7    6.7     .8
  Imports...........................    4.1   10.8    6.1    9.0   -5.0    4.1    3.7   17.6   10.2   16.0    4.4   12.0    4.1    1.4    2.5   13.2    9.1    1.4    5.6
    Goods...........................    4.9   10.9    6.7    8.1   -3.9    8.6     .6   17.2   10.1   17.7    4.7   12.6    4.9    2.0    2.7   14.1    9.4    -.1    7.1
    Services........................     .0   10.0    2.8   14.0  -10.6  -15.7   21.2   19.6   10.9    7.6    3.1    9.0    -.2   -1.5    1.2    8.3    7.4    9.9   -2.6

Government consumption expenditures
 and gross investment...............    2.5    1.9     .9    4.8   -1.4    6.1    1.5     .7    2.9    2.2    1.3   -1.9    1.6    1.1    3.4   -1.1    4.9     .8    1.7
  Federal...........................    6.8    4.3    1.5   10.2     .1   19.7     .4    3.1    7.2    2.5    5.0   -5.2    3.4     .4    9.6   -4.6    8.8   -4.5    1.3
    National defense................    8.7    5.9    1.7   14.8   -4.4   36.3   -5.3    8.1    9.1    2.0    9.1   -9.1    4.5    2.9   11.2   -9.9    8.9   -2.0   -1.2
    Nondefense......................    3.4    1.2    1.1    2.1    9.0   -6.4   12.4   -6.0    3.6    3.5   -2.9    3.4    1.2   -4.4    6.2    7.1    8.5   -9.3    6.5
  State and local...................     .2     .5     .5    2.0   -2.2    -.8    2.1    -.6     .5    2.1    -.9     .1     .6    1.5    -.1    1.0    2.7    4.0    1.9

Addenda:
  Final sales of domestic product...    2.5    3.5    3.5     .1    1.3    4.5    6.9    2.1    3.4    2.6    4.0    2.6    3.3    5.6    4.4    -.3    5.6    2.1    1.9
  Gross domestic purchases..........    2.8    4.4    3.3    1.7     .9    4.0    6.6    3.0    4.4    5.5    3.1    3.3    3.4    2.4    4.0    2.7    5.3    2.0    2.0
  Final sales to domestic
   purchasers.......................    2.8    4.0    3.6    1.6    1.1    5.1    6.1    2.5    4.0    4.1    4.0    3.2    3.3    4.6    4.2     .7    5.4    1.6    2.0
  Gross national product (GNP)......    2.7    3.8    3.1    1.0     .8    4.1    7.3    3.5    3.5    2.9    3.3    2.0    3.6    3.0    4.9     .5    6.1    2.3    1.8
  Disposable personal income........    2.2    3.6    1.2     .2    1.7    5.0    6.3    1.7    3.9    2.4    2.8    7.5   -4.0     .5    -.6    5.5    4.6   -1.5    4.1

  Current-dollar measures:
    GDP.............................    4.7    6.9    6.3    2.4    4.4    4.8    9.7    4.9    7.8    7.9    5.3    5.9    7.0    5.8    7.6    5.1    9.0    5.9    3.8
    Final sales of domestic product.    4.7    6.5    6.7    2.4    4.6    5.8    9.1    4.4    7.3    6.4    6.2    5.9    6.9    8.2    7.8    3.0    9.1    5.5    3.8
    Gross domestic purchases........    5.2    7.6    6.9    3.9    5.1    4.7    9.1    4.9    8.9    9.7    5.8    7.0    6.7    5.8    8.5    6.3    8.2    6.1    4.2
    Final sales to domestic
     purchasers.....................    5.2    7.2    7.2    3.8    5.3    5.7    8.5    4.4    8.5    8.3    6.7    7.0    6.7    8.1    8.8    4.3    8.2    5.7    4.2
    GNP.............................    4.9    6.7    6.2    3.2    4.0    5.4    9.6    5.8    7.4    6.7    5.4    5.3    7.2    5.6    8.4    3.8    9.6    5.7    3.7
    Disposable personal income......    4.2    6.4    4.1    1.9    4.8    5.7    8.9    3.2    7.7    6.0    4.7   10.7   -1.8    3.6    3.5    8.6    6.8    2.5    6.6
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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  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 06  II 06 III 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

    Gross domestic product..........    2.5    3.9    3.2     .2    1.2    3.5    7.5    2.7    3.9    4.0    3.1    2.6    3.4    3.3    4.2    1.8    5.6    2.6    2.0

Percentage points at annual rates:

  Personal consumption expenditures.   1.94   2.71   2.44    .97   1.41   2.53   4.13   1.59   3.30   2.07   2.74   2.97   1.94   2.94   2.76    .53   3.38   1.81   1.96

    Durable goods...................    .50    .54    .45   -.47    .03   1.35   1.39    .06    .51    .14    .71    .50    .20   1.02    .74  -1.08   1.50   -.01    .50
      Motor vehicles and parts......    .12    .07    .02   -.75   -.04    .65    .46   -.29    .09   -.14    .22    .17   -.29    .50    .38  -1.51    .60   -.04    .28
      Furniture and household
       equipment....................    .27    .35    .29    .21    .05    .49    .67    .27    .33    .28    .36    .21    .27    .28    .40    .33    .65    .10    .20
      Other.........................    .10    .11    .14    .07    .02    .21    .26    .08    .10    .01    .13    .12    .21    .24   -.03    .10    .26   -.06    .03

    Nondurable goods................    .64    .73    .90    .70    .75    .45   1.53    .36    .86    .34    .74   1.07   1.04    .98    .70    .79   1.20    .30    .32
      Food..........................    .23    .33    .51    .20    .39    .04    .61    .02    .54    .16    .28    .70    .53    .55    .61    .39    .64    .19   -.07
      Clothing and shoes............    .14    .14    .17    .31   -.02    .29    .31   -.02    .32   -.14    .18    .19    .17    .25    .08    .27    .23   -.10    .15
      Gasoline, fuel oil, and other
       energy goods.................    .01    .02   -.01   -.04   -.02   -.02    .10    .06    .00    .00   -.04    .01    .12   -.10   -.15   -.06   -.03    .02    .14
      Other.........................    .26    .24    .23    .23    .39    .14    .52    .30    .00    .32    .32    .16    .21    .28    .16    .19    .36    .19    .11

    Services........................    .80   1.45   1.09    .74    .63    .73   1.21   1.18   1.92   1.59   1.30   1.39    .70    .94   1.32    .83    .67   1.52   1.14
      Housing.......................    .10    .40    .30   -.07    .11    .18    .35    .40    .49    .42    .37    .32    .29    .28    .24    .18    .24    .25    .27
      Household operation...........    .06    .10    .08    .19    .00    .00    .02    .17    .11    .10    .06    .25    .01    .04    .09    .01   -.58    .31    .35
        Electricity and gas.........    .03    .02    .04    .23   -.05   -.08   -.03    .12    .06   -.06   -.07    .25    .00    .00    .03    .03   -.58    .23    .32
        Other household operation...    .03    .08    .04   -.04    .05    .08    .05    .05    .05    .16    .13    .00    .01    .04    .06   -.02    .00    .08    .04
      Transportation................    .00    .03    .00   -.01    .07   -.03    .03    .02    .05    .06    .00    .04    .02   -.03   -.04    .00    .10    .04    .03
      Medical care..................    .45    .37    .43    .59    .47    .28    .28    .28    .33    .47    .53    .43    .32    .40    .53    .44    .52    .31    .25
      Recreation....................    .10    .14    .08    .16    .02    .15    .13    .16    .18    .13    .09    .05    .13    .05    .05    .04    .09    .02    .08
      Other.........................    .09    .41    .20   -.12   -.04    .16    .40    .15    .76    .42    .24    .30   -.07    .20    .44    .16    .31    .58    .15

  Gross private domestic investment.    .54   1.49    .87   -.14   -.16    .51   2.56   1.39    .74   3.17    .32    .82   1.32   -.61    .84   2.51   1.31    .17   -.13

    Fixed investment................    .51   1.11   1.17   -.21   -.04   1.52   2.00    .83    .34   1.72   1.16    .77   1.22   1.62   1.02    .46   1.34   -.27   -.19
      Nonresidential................    .10    .58    .67   -.52   -.24   1.01    .92    .29    .18    .69    .97    .81    .59    .51    .59    .52   1.36    .45   1.01
        Structures..................   -.11    .06    .03   -.14   -.18    .35   -.02   -.12    .08    .17    .08   -.05    .14   -.06   -.20    .31    .25    .56    .46
        Equipment and software......    .21    .52    .64   -.38   -.06    .66    .95    .41    .10    .52    .90    .86    .45    .56    .78    .21   1.11   -.10    .55
          Information processing
           equipment and software...    .22    .36    .30   -.38    .31    .13    .82    .70    .30    .05    .21    .33    .43    .29    .26    .25    .74   -.04    .35
            Computers and peripheral
             equipment..............    .09    .10    .12   -.04    .12    .00    .26    .21   -.03   -.03    .21    .17    .10    .10    .06    .16    .15    .03    .13
            Software................    .07    .15    .09   -.17    .06    .05    .32    .20    .17    .03    .12    .16    .03    .12    .07    .04    .18    .07    .09
            Other...................    .05    .11    .10   -.17    .12    .08    .23    .29    .16    .05   -.12    .00    .30    .06    .13    .04    .40   -.14    .13
          Industrial equipment......    .04   -.05    .10    .01    .17    .14   -.14   -.22   -.09   -.05    .19    .05    .16   -.07    .23    .19   -.05    .16    .00
          Transportation equipment..   -.12    .14    .15   -.02   -.57    .31    .01   -.13   -.08    .46    .39    .40   -.14    .11    .27   -.31    .31   -.32    .15
          Other equipment...........    .07    .07    .09    .02    .04    .08    .26    .07   -.04    .06    .10    .08    .01    .24    .03    .08    .11    .09    .05
      Residential...................    .41    .53    .50    .30    .20    .51   1.08    .55    .16   1.03    .18   -.04    .63   1.11    .43   -.06   -.02   -.72  -1.20

    Change in private inventories...    .04    .38   -.30    .08   -.12  -1.01    .56    .56    .40   1.44   -.84    .05    .09  -2.23   -.18   2.05   -.03    .44    .06
      Farm..........................    .03    .07   -.06    .03    .19   -.16   -.06   -.05    .27    .61   -.48   -.38    .16   -.26    .28    .14   -.01   -.09    .02
      Nonfarm.......................    .00    .31   -.24    .04   -.31   -.85    .62    .60    .13    .84   -.35    .43   -.06  -1.97   -.46   1.90   -.02    .54    .05

  Net exports of goods and services.   -.44   -.65   -.26  -1.52    .21   -.73    .51   -.47   -.73  -1.62   -.20   -.81   -.16    .72   -.06  -1.07   -.04    .42   -.19

    Exports.........................    .12    .88    .68   -.31   -.53   -.16   1.02   1.81    .69    .60    .46    .96    .47    .94    .33    .97   1.41    .66    .73
      Goods.........................    .12    .60    .52   -.64    .13   -.08    .55   1.20    .47    .43    .55    .42    .38    .88    .27    .80   1.20    .45    .71
      Services......................    .00    .28    .16    .33   -.65   -.08    .47    .61    .22    .17   -.09    .54    .09    .06    .06    .17    .21    .21    .03

    Imports.........................   -.56  -1.53   -.94  -1.21    .74   -.57   -.51  -2.29  -1.42  -2.22   -.66  -1.77   -.63   -.22   -.39  -2.04  -1.46   -.24   -.93
      Goods.........................   -.56  -1.29   -.87   -.90    .47   -.97   -.07  -1.86  -1.17  -2.03   -.59  -1.55   -.64   -.26   -.36  -1.84  -1.27    .01  -1.00
      Services......................    .00   -.24   -.07   -.31    .27    .40   -.44   -.43   -.25   -.18   -.08   -.22    .01    .04   -.03   -.20   -.19   -.25    .07

  Government consumption expenditures
   and gross investment.............    .47    .36    .17    .89   -.26   1.16    .29    .14    .55    .43    .24   -.37    .31    .21    .64   -.21    .94    .16    .32

    Federal.........................    .44    .30    .11    .64    .01   1.26    .03    .21    .49    .18    .34   -.38    .23    .03    .66   -.33    .61   -.32    .09
      National defense..............    .37    .27    .08    .59   -.20   1.41   -.25    .35    .41    .09    .41   -.45    .21    .13    .52   -.49    .41   -.09   -.06
        Consumption expenditures....    .32    .22    .05    .67   -.22   1.30   -.32    .31    .40    .00    .34   -.44    .25    .03    .45   -.47    .37   -.17   -.04
        Gross investment............    .05    .05    .03   -.08    .02    .12    .07    .05    .00    .10    .08   -.01   -.04    .10    .07   -.02    .05    .08   -.02
      Nondefense....................    .08    .03    .03    .05    .21   -.16    .28   -.14    .09    .08   -.07    .08    .03   -.11    .14    .16    .20   -.23    .15
       Consumption expenditures.....    .07    .03    .00    .07    .19   -.21    .27   -.12    .11    .03   -.06    .05    .01   -.09    .08    .05    .16   -.10    .13
       Gross investment.............    .01    .00    .02   -.02    .01    .06    .01   -.03   -.03    .05   -.01    .03    .01   -.02    .06    .11    .03   -.12    .02

    State and local.................    .02    .06    .06    .25   -.27   -.10    .26   -.07    .06    .25   -.10    .01    .08    .18   -.01    .13    .33    .48    .23
        Consumption expenditures....    .00    .10    .08    .15   -.19   -.07   -.04    .07    .19    .15    .08    .15    .02    .05    .14    .09    .17    .20    .30
        Gross investment............    .02   -.04   -.02    .10   -.09   -.02    .30   -.15   -.13    .11   -.18   -.14    .06    .13   -.15    .03    .16    .28   -.08

Addenda:
    Goods...........................   1.00   1.56   1.43  -1.74   1.27    .56   5.00    .81   1.20    .99   1.56   1.43   1.51   1.09   2.07    .97   3.86   1.12   1.17
    Services........................   1.20   1.84   1.31   1.65    .03   2.06   1.15   1.63   2.59   1.74   1.48   1.47   1.07   1.04   2.02    .46   1.39   1.40   1.63
    Structures......................    .31    .51    .49    .29   -.09    .85   1.33    .22    .05   1.31    .06   -.29    .82   1.13    .09    .33    .33    .04   -.84
    Motor vehicle output............    .05    .12    .20    .01   -.46    .36    .30   -.23    .33   -.24    .52    .06    .38   -.03    .70   -.71    .12   -.31    .76
    Final sales of computers........    .15    .06    .16    .11    .12   -.02    .50    .15   -.13   -.14    .15    .26    .16    .20    .08    .20    .07    .04    .07
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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   III 05    IV 05     I 06    II 06   III 06r    2005   III 05    IV 05     I 06    II 06   III 06r    2005    II 06   III 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 12,455.8 12,573.5 12,730.5 13,008.4 13,197.3 13,322.6 11,048.6 11,115.1 11,163.8 11,316.4 11,388.1 11,443.5    345.1     71.7     55.4

Personal consumption expenditures.  8,742.4  8,847.3  8,927.8  9,079.2  9,228.1  9,346.7  7,841.2  7,895.3  7,910.2  8,003.8  8,055.0  8,111.2    264.1     51.2     56.2

  Durable goods...................  1,033.1  1,057.3  1,019.6  1,064.1  1,061.8  1,075.5  1,145.3  1,175.9  1,137.9  1,190.5  1,190.3  1,208.8     59.6      -.2     18.5
    Motor vehicles and parts......    448.2    468.1    421.6    442.7    441.7    451.3    452.9    474.6    426.3    445.1    443.7    452.9      2.5     -1.4      9.2
    Furniture and household
     equipment....................    377.2    380.0    386.0    402.3    401.3    403.2    490.6    497.7    511.5    538.5    542.9    551.7     44.6      4.4      8.8
    Other.........................    207.7    209.2    212.0    219.1    218.8    221.0    212.6    213.1    216.3    224.6    222.5    223.4     17.0     -2.1       .9

  Nondurable goods................  2,539.3  2,584.9  2,613.5  2,658.2  2,721.4  2,747.7  2,276.8  2,287.6  2,309.6  2,342.8  2,351.1  2,360.1     97.6      8.3      9.0
    Food..........................  1,201.4  1,214.7  1,233.7  1,262.3  1,274.0  1,280.7  1,065.7  1,074.9  1,085.7  1,103.4  1,108.8  1,106.8     54.7      5.4     -2.0
    Clothing and shoes............    341.8    341.3    349.1    355.4    355.1    358.7    372.7    373.9    383.1    391.1    387.4    392.6     21.8     -3.7      5.2
    Gasoline, fuel oil, and other
     energy goods.................    302.1    331.0    322.1    316.2    359.1    369.4    199.5    197.8    196.6    196.0    196.3    198.7     -1.0       .3      2.4
    Other.........................    694.0    698.0    708.6    724.2    733.3    738.9    643.9    646.7    652.4    662.6    668.3    671.5     25.4      5.7      3.2

  Services........................  5,170.0  5,205.1  5,294.7  5,356.8  5,444.9  5,523.5  4,436.6  4,454.5  4,476.7  4,494.5  4,535.4  4,566.6    112.7     40.9     31.2
    Housing.......................  1,304.1  1,311.7  1,326.6  1,345.4  1,370.1  1,394.2  1,122.6  1,126.4  1,131.2  1,137.6  1,144.5  1,151.7     31.0      6.9      7.2
    Household operation...........    483.0    484.3    506.1    494.8    499.1    512.3    418.0    419.4    419.8    404.3    412.5    422.1      8.7      8.2      9.6
      Electricity and gas.........    199.8    199.4    219.9    206.2    206.9    216.6    153.8    154.0    154.7    141.7    147.0    154.4      4.0      5.3      7.4
      Other household operation...    283.2    285.0    286.2    288.6    292.2    295.7    264.1    265.4    264.9    264.8    267.0    268.1      4.6      2.2      1.1
    Transportation................    320.4    322.3    325.9    330.4    335.9    339.5    284.4    283.6    283.5    286.3    287.5    288.5       .4      1.2      1.0
    Medical care..................  1,493.4  1,505.0  1,534.0  1,557.2  1,578.2  1,597.5  1,260.9  1,267.5  1,279.0  1,292.6  1,300.9  1,307.6     43.6      8.3      6.7
    Recreation....................    360.6    362.6    367.7    372.4    377.2    382.7    313.1    313.9    315.1    317.5    318.1    320.4      8.3       .6      2.3
    Other.........................  1,208.4  1,219.1  1,234.4  1,256.5  1,284.3  1,297.3  1,036.2  1,042.2  1,046.5  1,054.9  1,070.6  1,074.8     20.2     15.7      4.2

Gross private domestic investment.  2,057.4  2,052.6  2,154.5  2,214.8  2,237.1  2,235.5  1,866.3  1,855.9  1,927.0  1,963.6  1,968.5  1,964.8     95.7      4.9     -3.7

  Fixed investment................  2,036.2  2,067.9  2,105.8  2,167.7  2,174.8  2,171.4  1,842.0  1,864.2  1,877.3  1,914.6  1,906.8  1,901.3    128.1     -7.8     -5.5
    Nonresidential................  1,265.7  1,276.7  1,304.3  1,359.2  1,384.3  1,420.8  1,223.8  1,232.4  1,248.2  1,288.8  1,302.8  1,334.2     78.0     14.0     31.4
      Structures..................    338.6    336.3    359.7    378.2    406.3    426.9    251.5    247.1    254.2    259.6    271.9    282.0      2.8     12.3     10.1
      Equipment and software......    927.1    940.4    944.7    981.0    977.9    994.0    984.9  1,000.6  1,007.6  1,044.8  1,041.2  1,060.7     80.7     -3.6     19.5
        Information processing
         equipment and software...    454.3    456.6    461.3    482.4    479.9    489.6    552.6    557.7    567.3    595.9    594.3    608.6     43.3     -1.6     14.3
          Computers and peripheral
           equipment..............     85.1     83.9     85.9     88.0     85.9     87.2    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    194.0    195.6    196.9    203.6    207.0    210.8    206.2    208.0    209.5    215.6    217.8    221.0     11.2      2.2      3.2
          Other...................    175.2    177.2    178.4    190.8    187.1    191.7    193.6    196.0    197.5    211.6    206.7    211.3     12.9     -4.9      4.6
        Industrial equipment......    155.1    157.0    163.9    163.4    170.1    172.0    143.5    144.9    150.4    149.0    153.9    153.9     10.8      4.9       .0
        Transportation equipment..    158.3    165.0    154.6    165.7    155.9    157.5    145.4    152.3    143.2    152.2    142.7    147.3     16.6     -9.5      4.6
        Other equipment...........    159.4    161.8    164.9    169.4    172.1    174.9    147.3    148.8    151.2    154.3    157.1    158.6      9.7      2.8      1.5
    Residential...................    770.4    791.2    801.5    808.5    790.6    750.5    608.0    620.4    618.9    618.5    600.5    570.3     48.1    -18.0    -30.2

  Change in private inventories...     21.3    -15.3     48.6     47.2     62.3     64.2     19.6    -12.7     43.5     41.2     53.7     55.4    -33.8     12.5      1.7
    Farm..........................       .3      1.3      5.8      5.4      2.3      2.5       .2      1.1      4.8      4.3      1.9      2.5     -5.9     -2.4       .6
    Nonfarm.......................     21.0    -16.6     42.8     41.8     59.9     61.6     19.6    -14.0     38.6     36.8     52.2     53.3    -27.4     15.4      1.1

Net exports of goods and services.   -716.7   -728.8   -775.4   -765.2   -781.8   -801.7   -619.2   -607.6   -636.6   -636.6   -624.2   -628.8    -28.3     12.4     -4.6

  Exports.........................  1,303.1  1,312.4  1,352.4  1,405.4  1,448.1  1,488.3  1,196.1  1,200.5  1,228.4  1,269.3  1,288.5  1,310.0     75.7     19.2     21.5
    Goods.........................    907.5    913.9    944.3    989.3  1,019.1  1,055.8    843.2    847.5    870.8    906.2    919.5    940.4     58.8     13.3     20.9
    Services......................    395.6    398.5    408.1    416.0    429.0    432.5    352.9    353.0    357.8    363.6    369.5    370.3     17.0      5.9       .8

  Imports.........................  2,019.9  2,041.2  2,127.8  2,170.6  2,229.8  2,290.1  1,815.3  1,808.1  1,865.0  1,905.9  1,912.7  1,938.8    104.0      6.8     26.1
    Goods.........................  1,699.0  1,719.1  1,799.3  1,832.6  1,879.0  1,938.8  1,549.9  1,543.9  1,595.8  1,631.9  1,631.7  1,660.1     97.7      -.2     28.4
    Services......................    320.9    322.1    328.5    338.1    350.8    351.3    267.5    266.3    271.7    276.6    283.2    281.3      7.2      6.6     -1.9

Government consumption expenditures
 and gross investment.............  2,372.8  2,402.4  2,423.6  2,479.6  2,513.9  2,542.1  1,958.0  1,968.8  1,963.5  1,987.1  1,991.2  1,999.4     17.4      4.1      8.2

  Federal.........................    878.3    895.8    886.2    921.7    919.7    927.2    727.5    738.2    729.6    745.1    736.6    738.9     10.9     -8.5      2.3
    National defense..............    589.3    605.0    590.9    613.5    616.5    618.1    483.6    494.1    481.4    491.8    489.3    487.8      8.2     -2.5     -1.5
      Consumption expenditures....    516.9    530.9    516.9    537.7    537.7    539.3    413.3    421.9    410.0    419.0    414.7    413.7      5.0     -4.3     -1.0
      Gross investment............     72.4     74.2     74.1     75.8     78.8     78.8     71.2     73.2     72.6     74.0     76.5     75.9      3.7      2.5      -.6
    Nondefense....................    289.0    290.7    295.3    308.2    303.2    309.0    243.7    243.8    248.0    253.1    247.0    250.9      2.7     -6.1      3.9
      Consumption expenditures....    251.7    253.4    254.2    265.9    264.6    269.8    207.3    207.5    208.7    212.8    210.1    213.4       .3     -2.7      3.3
      Gross investment............     37.4     37.4     41.1     42.4     38.6     39.3     36.7     36.6     40.1     41.1     37.2     37.8      2.8     -3.9       .6

  State and local.................  1,494.4  1,506.6  1,537.4  1,557.9  1,594.2  1,614.9  1,230.4  1,230.5  1,233.7  1,242.0  1,254.4  1,260.3      6.5     12.4      5.9
      Consumption expenditures....  1,207.2  1,217.8  1,243.4  1,256.2  1,280.7  1,300.0    988.0    989.5    991.9    996.1  1,001.2  1,009.0      8.4      5.1      7.8
      Gross investment............    287.3    288.7    294.0    301.7    313.5    315.0    242.1    240.7    241.6    245.7    253.1    251.1     -2.0      7.4     -2.0

Residual..........................    .....    .....    .....    .....    .....    .....    -42.6    -47.1    -53.7    -78.7    -77.6    -88.3    .....    .....    .....

Addenda:
  Final sales of domestic product. 12,434.6 12,588.8 12,681.9 12,961.2 13,135.1 13,258.4 11,025.2 11,123.5 11,115.5 11,269.0 11,328.0 11,381.6    376.9     59.0     53.6
  Gross domestic purchases........ 13,172.5 13,302.3 13,505.9 13,773.6 13,979.1 14,124.3 11,659.7 11,714.6 11,792.9 11,946.3 12,005.9 12,066.6    373.2     59.6     60.7
  Final sales to domestic
   purchasers..................... 13,151.3 13,317.6 13,457.3 13,726.4 13,916.8 14,060.1 11,636.1 11,722.8 11,744.6 11,898.7 11,945.9 12,004.7    405.0     47.2     58.8

  Gross domestic product.......... 12,455.8 12,573.5 12,730.5 13,008.4 13,197.3 13,322.6 11,048.6 11,115.1 11,163.8 11,316.4 11,388.1 11,443.5    345.1     71.7     55.4
  Plus: Income receipts from
   the rest of the world..........    513.3    527.2    564.9    603.3    661.4    682.3    456.9    467.2    496.1    526.4    571.4    586.5     80.2     45.0     15.1
  Less: Income payments to
   the rest of the world..........    481.5    475.0    552.4    574.3    638.6    665.7    427.2    419.9    483.8    499.7    550.3    570.9     93.9     50.6     20.6
  Equals: Gross national product.. 12,487.7 12,625.7 12,743.0 13,037.4 13,220.1 13,339.2 11,077.9 11,162.0 11,175.6 11,342.7 11,408.5 11,458.5    331.1     65.8     50.0

  Net domestic product............ 10,851.0 10,675.5 11,168.0 11,460.3 11,624.6 11,740.6  9,557.2  9,371.6  9,727.9  9,896.5  9,959.8 10,007.3    237.4     63.3     47.5
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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  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 06  II 06 III 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.1    2.8    3.0    2.2    3.1    1.3    2.1    2.2    3.7    3.7    2.1    3.2    3.5    2.4    3.3    3.3    3.3    3.3    1.9

Personal consumption expenditures...    2.0    2.6    2.9    1.7    3.1     .7    2.4    1.5    3.7    3.6    1.9    3.0    2.3    3.1    4.1    2.9    2.0    4.0    2.4
  Durable goods.....................   -3.6   -1.6    -.7   -2.7   -4.8   -4.2   -4.0   -3.5     .0     .3   -2.3     .3     .3    -.6   -2.9   -1.3   -1.0    -.8   -1.1
  Nondurable goods..................    2.0    3.3    3.6    1.2    5.6   -2.9    3.9     .5    5.7    6.0    1.1    4.4    1.1    4.8    9.0     .6    1.1    8.3    2.3
  Services..........................    3.2    3.2    3.2    2.8    3.6    3.5    3.0    3.0    3.5    3.2    3.1    3.0    3.2    3.1    3.2    5.0    3.1    2.9    3.0

Gross private domestic investment...    1.5    3.3    3.4    2.9    2.8    -.7    1.3    3.5    4.2    4.5    3.6    3.7    3.0    2.7    3.7    4.3    3.7    3.1     .6
  Fixed investment..................    1.6    3.4    3.5    3.0    3.1    -.8    1.3    3.5    4.3    4.6    3.6    3.7    3.1    2.7    4.0    4.6    3.8    3.0     .5
    Nonresidential..................     .1    1.2    2.6    1.1     .1   -1.3     .7    1.4    1.0    2.1    1.4    2.6    3.6    2.0    2.2    3.5    3.7    3.0     .9
      Structures....................    3.5    6.2   11.3    5.1    4.8    -.2    2.3    4.2    6.7    7.8   10.2   12.0   11.6    9.2   13.2   16.8   12.4   10.7    5.3
      Equipment and software........   -1.1    -.4    -.4    -.3   -1.5   -1.7     .1     .4    -.9     .2   -1.5    -.5     .9    -.4   -1.5   -1.0     .6     .1    -.9
    Residential.....................    4.8    7.3    5.1    7.0    9.4     .2    2.6    7.7   10.5    9.0    7.4    5.6    2.3    3.8    6.9    6.3    3.8    2.9    -.1
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    2.2    3.7    3.6     .6    4.1    1.1     .9    3.0    6.1    5.0    1.8    4.0    4.6    3.6    2.6    2.8    2.3    6.1    4.5
    Goods...........................    2.0    3.7    3.1     .5    3.6    1.6    -.7    4.1    6.5    5.2    1.1    3.6    4.4    3.0    1.3    2.3    2.8    6.2    5.3
    Services........................    2.6    3.5    4.8     .7    5.3    -.2    4.7     .7    5.0    4.5    3.5    5.0    5.1    4.9    5.6    4.2    1.2    6.0    2.5
  Imports...........................    3.5    5.0    6.3     .6   11.3   -3.9    2.6     .4    9.7    7.3    5.5    6.7    2.6    9.2   10.2    4.3    -.7    9.8    5.4
    Goods...........................    2.9    5.0    6.5     .4   11.9   -6.7    2.5     .5   10.1    7.9    5.4    6.8    1.8   10.1   11.3    5.1   -1.6   10.6    5.8
    Services........................    6.3    5.1    5.4    1.4    8.1   11.8    3.1     .0    8.0    4.4    6.2    6.3    6.8    5.1    4.3    -.1    4.5    5.5    3.2

Government consumption expenditures
 and gross investment...............    4.1    4.4    5.6    3.6    9.2    1.3    2.5    2.2    6.8    5.3    4.6    5.7    7.0    4.6    5.9    4.7    4.4    4.8    2.8
  Federal...........................    4.2    4.7    4.8    4.6   11.3    1.5    1.0    1.1   11.5    5.3    2.2    2.9   11.3    2.2    3.3     .4    7.6    3.8    2.0
    National defense................    4.7    4.7    5.1    6.9   10.3    1.4    1.2    1.3   10.5    5.8    2.8    3.2   11.6    2.4    3.4    1.0    6.7    4.1    2.3
    Nondefense......................    3.4    4.7    4.1     .5   12.9    1.6     .6     .6   13.7    4.3     .9    2.3   10.6    1.8    3.2    -.7    9.5    3.2    1.4
  State and local...................    4.1    4.3    6.2    3.0    8.1    1.1    3.3    2.9    4.1    5.3    6.1    7.4    4.6    6.1    7.4    7.3    2.6    5.4    3.4

Addenda:
  Final sales of domestic product...    2.1    2.8    3.0    2.3    3.2    1.3    2.1    2.2    3.7    3.7    2.1    3.2    3.5    2.4    3.3    3.3    3.3    3.3    1.9
  Gross domestic purchases..........    2.3    3.1    3.5    2.2    4.1     .6    2.2    1.9    4.3    4.1    2.6    3.6    3.2    3.3    4.4    3.5    2.7    4.0    2.2
  Final sales to domestic
   purchasers.......................    2.3    3.1    3.5    2.2    4.2     .6    2.2    1.9    4.3    4.1    2.6    3.6    3.2    3.3    4.4    3.5    2.7    4.0    2.2
  Gross national product (GNP)......    2.1    2.8    3.0    2.2    3.2    1.3    2.1    2.2    3.7    3.7    2.1    3.2    3.5    2.4    3.3    3.2    3.3    3.3    1.9

  Implicit price deflators:
    GDP.............................    2.1    2.8    3.0    2.2    3.2    1.3    2.1    2.2    3.8    3.7    2.1    3.2    3.4    2.5    3.3    3.3    3.3    3.3    1.9
    Gross domestic purchases........    2.3    3.1    3.5    2.2    4.1     .6    2.3    1.9    4.3    4.0    2.6    3.6    3.2    3.4    4.3    3.5    2.7    4.0    2.1
    GNP.............................    2.1    2.8    3.0    2.3    3.1    1.3    2.1    2.2    3.8    3.7    2.1    3.2    3.4    2.5    3.3    3.3    3.3    3.3    1.9
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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     III 05      IV 05       I 06      II 06     III 06r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    104.931    109.031    112.546    113.223    113.719    115.274    116.004    116.569

Personal consumption expenditures..........    108.249    112.430    116.349    117.152    117.373    118.761    119.521    120.355
  Durable goods............................    118.214    125.753    132.666    136.207    131.799    137.893    137.868    140.019
  Nondurable goods.........................    108.002    111.913    116.924    117.481    118.608    120.313    120.742    121.204
  Services.................................    106.363    110.055    112.925    113.379    113.945    114.398    115.440    116.234

Gross private domestic investment..........     92.949    102.026    107.537    106.938    111.034    113.143    113.429    113.215
  Fixed investment.........................     95.110    102.080    109.708    111.032    111.811    114.033    113.570    113.240
    Nonresidential.........................     87.804     92.995     99.326    100.025    101.308    104.606    105.738    108.292
      Structures...........................     77.735     79.418     80.302     78.903     81.174     82.893     86.819     90.044
      Equipment and software...............     91.747     98.400    107.180    108.889    109.653    113.704    113.313    115.434
    Residential............................    113.977    125.281    136.050    138.821    138.495    138.391    134.368    127.601
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     93.599    102.201    109.105    109.503    112.054    115.783    117.536    119.495

Imports of goods and services..............    104.693    115.962    123.007    122.520    126.377    129.146    129.608    131.378

Government consumption expenditures and
 gross investment..........................    110.644    112.720    113.731    114.358    114.048    115.423    115.657    116.136
  Federal..................................    118.712    123.813    125.701    127.545    126.053    128.728    127.262    127.669
  State and local..........................    106.557    107.094    107.660    107.674    107.954    108.682    109.762    110.277

Addenda:
  Final sales of domestic product..........    105.375    109.096    112.958    113.965    113.883    115.455    116.060    116.609
  Gross domestic purchases.................    106.071    110.691    114.351    114.889    115.657    117.161    117.746    118.341
  Final sales to domestic purchasers.......    106.504    110.761    114.755    115.610    115.825    117.345    117.810    118.390
  Gross national product...................    105.067    109.039    112.399    113.252    113.390    115.085    115.753    116.260
-----------------------------------------------------------------------------------------------------------------------------------
  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     III 05      IV 05       I 06      II 06     III 06r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    106.409    109.429    112.744    113.139    114.048    114.967    115.905    116.446

Personal consumption expenditures
 (PCE).....................................    105.597    108.373    111.493    112.067    112.873    113.445    114.573    115.241
  Durable goods............................     92.366     90.845     90.198     89.908     89.606     89.385     89.206     88.967
  Nondurable goods.........................    104.145    107.617    111.530    113.016    113.177    113.484    115.769    116.442
  Services.................................    109.379    112.863    116.529    116.858    118.281    119.194    120.059    120.960

Gross private domestic investment..........    103.191    106.645    110.284    110.675    111.853    112.860    113.717    113.895
  Fixed investment.........................    103.313    106.811    110.542    110.946    112.194    113.238    114.074    114.224
    Nonresidential.........................     99.591    100.834    103.428    103.607    104.510    105.471    106.266    106.501
      Structures...........................    113.872    120.951    134.647    136.089    141.476    145.684    149.432    151.372
      Equipment and software...............     94.912     94.503     94.134     93.983     93.754     93.887     93.920     93.704
    Residential............................    112.372    120.618    126.714    127.573    129.536    130.765    131.696    131.655
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............    101.429    105.151    108.949    109.341    110.108    110.737    112.400    113.631

Imports of goods and services..............     99.685    104.678    111.268    112.919    114.117    113.918    116.608    118.143

Government consumption expenditures and
 gross investment..........................    109.849    114.718    121.183    122.029    123.444    124.791    126.262    127.150
  Federal..................................    110.094    115.249    120.726    121.353    121.479    123.721    124.871    125.482
  State and local..........................    109.712    114.417    121.463    122.438    124.620    125.434    127.095    128.147

Addenda:
  PCE excluding food and energy............    105.175    107.314    109.559    109.732    110.418    110.983    111.738    112.337
  Market-based PCE\1\......................    104.995    107.393    110.339    110.952    111.647    112.116    113.272    113.879
  Market-based PCE excluding food
   and energy\1\...........................    104.330    105.865    107.713    107.854    108.375    108.810    109.524    110.033
  Final sales of domestic product..........    106.430    109.455    112.783    113.181    114.101    115.025    115.961    116.498
  Gross domestic purchases.................    105.966    109.210    112.981    113.572    114.541    115.313    116.455    117.080
  Final sales to domestic purchasers.......    105.986    109.235    113.021    113.614    114.594    115.371    116.510    117.133
  Gross national product...................    106.401    109.419    112.733    113.131    114.038    114.958    115.897    116.440

  Implicit price deflators:
    Gross domestic product.................    106.404    109.426    112.737    113.121    114.034    114.951    115.887    116.420
    Final sales of domestic product........    106.430    109.455    112.783    113.173    114.092    115.017    115.952    116.490
    Gross domestic purchases...............    105.961    109.207    112.975    113.553    114.526    115.296    116.435    117.053
    Final sales to domestic purchasers.....    105.985    109.235    113.021    113.604    114.583    115.360    116.499    117.122
    Gross national product.................    106.396    109.416    112.726    113.113    114.025    114.942    115.879    116.414
-----------------------------------------------------------------------------------------------------------------------------------
  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 in 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     2.5     3.9     3.2

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     2.8     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     5.8     6.4     5.5
  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     3.6     4.5
  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     1.9     3.5     2.6

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     3.6     9.8     5.4
  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     3.4     7.3     7.5
    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     1.0     5.9     6.8
      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    -4.1     2.2     1.1
      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     2.8     7.3     8.9
    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     9.9     8.6
  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     1.3     9.2     6.8
    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     9.0     7.5
    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      .0     9.7     5.1
  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     4.1    10.8     6.1
    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    10.9     6.7
    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      .0    10.0     2.8

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     2.5     1.9      .9
  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     6.8     4.3     1.5
    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     8.7     5.9     1.7
    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     1.2     1.1
  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      .2      .5      .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     2.5     3.5     3.5
  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     2.8     4.4     3.3
  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     2.8     4.0     3.6
  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     2.7     3.8     3.1
  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     2.2     3.6     1.2

  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     2.3     3.1     3.5
    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     1.9     2.7     2.8
    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     2.1     2.8     3.0
    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     1.9     2.7     3.0
    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     2.0     2.6     2.9
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                          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 06   II 06  III 06r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     1.9     1.5     1.8     3.1     3.7     4.3     4.5     3.4     3.4     3.3     3.1     3.4     3.1     3.7     3.5     3.0

Personal consumption expenditures
 (PCE).................................     1.9     2.0     2.3     3.2     3.4     4.1     3.9     3.5     4.0     3.5     3.8     3.8     2.9     3.4     3.0     2.7
  Durable goods........................     1.2     2.4     5.5     6.7     8.3     9.8     6.1     4.2     5.6     4.7     7.4     7.5     2.5     6.6     3.4     2.8
  Nondurable goods.....................     2.1     2.3     2.5     4.3     3.9     4.0     3.8     2.9     3.8     4.0     4.8     4.7     4.4     4.5     3.6     3.2
  Services.............................     1.9     1.8     1.6     2.0     2.2     3.0     3.5     3.6     3.7     3.0     2.6     2.6     2.3     2.3     2.6     2.5

Gross private domestic investment......     4.9     1.3     1.6     4.4     7.0     8.6    13.2     9.2     8.2     9.0     2.8     3.6     6.3     6.2     7.4     5.9
  Fixed investment.....................    -2.5    -1.0     1.9     5.4     7.2     7.9     8.2     6.7     6.6     8.0     7.7     7.4     6.8     6.9     3.9     2.0
    Nonresidential.....................    -6.5    -3.9      .1     2.9     4.9     6.1     5.2     5.5     6.9     8.0     7.4     6.3     5.6     7.4     7.2     8.3
      Structures.......................   -14.9   -11.9    -3.9      .1      .2     2.9     1.1     2.0     2.7     3.2     1.0    -1.6     1.8     2.6     8.0    14.1
      Equipment and software...........    -3.4     -.9     1.5     3.9     6.6     7.2     6.7     6.7     8.3     9.7     9.8     9.3     7.0     9.2     6.8     6.0
    Residential........................     7.0     5.5     5.7    10.6    11.7    11.4    13.7     9.0     6.1     8.1     8.1     9.1     9.0     6.1    -1.5    -8.1
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................     3.8     1.1    -1.9      .1     5.8     9.1    11.2     9.6     7.0     6.4     7.2     6.8     6.7     9.0     8.2     9.1
    Goods..............................     1.1     2.0    -1.6     -.1     7.1     8.4    10.4    10.3     7.0     6.6     8.1     7.0     8.3    11.2     9.5    11.0
    Services...........................    10.2    -1.0    -2.4      .5     3.0    10.9    13.2     7.9     7.1     5.9     5.0     6.3     3.1     4.0     5.2     4.9
  Imports..............................     9.7     5.3     3.3     2.8     4.8     8.8    11.7    11.9    10.6     9.0     5.4     4.9     5.2     6.4     6.4     7.2
    Goods..............................     9.9     6.4     4.7     3.2     5.3     9.0    11.2    12.3    11.2     9.8     6.0     5.5     5.8     6.9     6.4     7.5
    Services...........................     8.8      .1    -3.3     1.0     2.2     7.9    14.7    10.1     7.6     4.8     2.5     2.0     1.9     3.7     6.6     5.6

Government consumption expenditures
 and gross investment..................     4.0     2.6     2.9     2.7     1.7     2.8     1.8     1.8     1.1      .8      .5     1.0     1.2     2.1     2.0     1.6
  Federal..............................     7.8     6.3     8.0     7.3     5.5     7.4     3.3     4.4     2.3     1.3      .8     1.9     2.1     3.4     2.1      .1
    National defense...................     8.4     6.3    11.7     9.1     7.5    11.1     3.3     7.0     2.5     1.4     1.6     2.1     1.9     2.9     1.7    -1.3
    Nondefense.........................     6.8     6.5     1.3     4.0     1.9      .6     3.2     -.5     1.8     1.2     -.7     1.5     2.4     4.2     2.9     2.9
  State and local......................     2.1      .7      .2      .3     -.4      .3     1.0      .3      .4      .5      .3      .5      .8     1.3     1.9     2.4

Addenda:
  Final sales of domestic product......      .8     1.1     1.8     3.2     3.7     4.2     3.7     3.0     3.1     3.1     3.9     4.0     3.2     3.8     2.9     2.3
  Gross domestic purchases.............     2.7     2.0     2.3     3.3     3.6     4.5     4.9     4.0     4.1     3.8     3.0     3.3     3.1     3.6     3.5     3.0
  Final sales to domestic purchasers...     1.6     1.7     2.4     3.4     3.7     4.4     4.2     3.6     3.8     3.6     3.8     3.8     3.2     3.7     3.0     2.4
  Gross national product...............     1.6     1.6     2.2     3.3     3.9     4.6     4.3     3.3     2.9     3.0     3.0     3.4     3.0     3.6     3.4     2.7
  Real disposable personal income......     2.9      .6     1.3     3.3     3.7     4.2     3.6     2.7     4.1     2.1     1.6      .8      .3     2.5     2.0     3.2

  Price indexes:
    Gross domestic purchases...........     1.9     2.6     2.1     2.3     2.2     2.2     3.1     3.2     3.7     3.4     3.2     3.6     3.6     3.5     3.6     3.1
    Gross domestic purchases excluding
     food and energy...................     1.7     1.9     1.8     1.9     1.9     2.1     2.6     2.8     3.0     3.0     2.8     2.8     2.8     2.7     2.9     2.8
    GDP................................     1.7     2.1     2.1     2.2     2.2     2.3     2.9     2.9     3.2     3.1     2.8     3.1     3.1     3.1     3.3     2.9
    GDP excluding food and energy......     1.9     2.0     1.9     1.9     1.9     2.1     2.6     2.9     3.1     3.1     2.9     2.9     3.0     2.9     3.1     2.9
    PCE................................     1.8     2.3     1.8     1.9     1.9     2.0     2.8     2.7     3.0     2.7     2.6     3.1     3.1     3.0     3.3     2.8
    PCE excluding food and energy......     1.6     1.5     1.4     1.3     1.4     1.8     2.1     2.1     2.2     2.2     2.0     2.0     2.1     2.0     2.2     2.4
    Market-based PCE\1\................     1.7     2.3     1.7     1.8     1.6     1.7     2.4     2.3     2.7     2.5     2.4     3.1     3.0     2.9     3.2     2.6
    Market-based PCE excluding food
     and energy\1\.....................     1.4     1.3     1.2     1.1     1.0     1.3     1.5     1.4     1.7     1.8     1.7     1.7     1.8     1.6     1.9     2.0
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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     III 05      IV 05       I 06      II 06     III 06r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   10,960.8   11,712.5   12,455.8   12,573.5   12,730.5   13,008.4   13,197.3   13,322.6

Plus: Income receipts from the rest of the
 world.....................................      336.8      410.2      513.3      527.2      564.9      603.3      661.4      682.3
Less: Income payments to the rest of the
 world.....................................      280.0      363.9      481.5      475.0      552.4      574.3      638.6      665.7

Equals: Gross national product.............   11,017.6   11,758.7   12,487.7   12,625.7   12,743.0   13,037.4   13,220.1   13,339.2

Less: Consumption of fixed capital.........    1,336.5    1,436.2    1,604.8    1,898.0    1,562.5    1,548.0    1,572.8    1,582.0
Less: Statistical discrepancy..............       48.8       66.7       71.0       84.5       74.3      -61.9       35.8       -5.3

Equals: National income....................    9,632.3   10,255.9   10,811.8   10,643.2   11,106.2   11,551.3   11,611.5   11,762.6
  Compensation of employees................    6,325.4    6,650.3    7,030.3    7,093.6    7,184.4    7,400.3    7,425.5    7,518.1
    Wage and salary accruals...............    5,127.7    5,377.1    5,664.8    5,715.2    5,787.0    5,970.1    5,980.9    6,054.5
    Supplements to wages and salaries......    1,197.7    1,273.2    1,365.5    1,378.4    1,397.4    1,430.3    1,444.5    1,463.6
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      811.3      911.1      970.7      967.3      996.8    1,008.3    1,011.9    1,014.8
  Rental income of persons with capital
   consumption adjustment..................      133.0      127.0       72.8      -11.5       81.5       76.8       71.4       78.3
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................      993.1    1,182.6    1,330.7    1,266.3    1,393.5    1,569.1    1,591.8    1,653.3
  Net interest and miscellaneous payments..      524.7      485.1      483.4      482.9      490.0      514.8      513.2      498.6
  Taxes on production and imports less
   subsidies...............................      759.3      819.4      865.1      872.1      874.2      897.4      914.0      916.8
  Business current transfer payments.......       83.8       85.5       74.2         .2       99.1       93.8       93.1       92.8
  Current surplus of government
   enterprises.............................        1.7       -5.0      -15.4      -27.7      -13.3       -9.2       -9.4      -10.2

Addendum:
  Gross domestic income....................   10,912.0   11,645.8   12,384.8   12,489.0   12,656.2   13,070.3   13,161.6   13,327.9
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2003       2004       2005     III 05      IV 05       I 06      II 06     III 06r
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    9,163.6    9,731.4   10,239.2   10,262.7   10,483.7   10,721.4   10,807.3   10,964.5

  Compensation of employees, received......    6,310.4    6,665.3    7,030.3    7,093.6    7,184.4    7,400.3    7,425.5    7,518.1
    Wage and salary disbursements..........    5,112.7    5,392.1    5,664.8    5,715.2    5,787.0    5,970.1    5,980.9    6,054.5
    Supplements to wages and salaries......    1,197.7    1,273.2    1,365.5    1,378.4    1,397.4    1,430.3    1,444.5    1,463.6
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      811.3      911.1      970.7      967.3      996.8    1,008.3    1,011.9    1,014.8
    Farm...................................       29.2       36.2       30.2       29.7       28.7       23.9       17.5       21.7
    Nonfarm................................      782.1      874.9      940.4      937.7      968.1      984.4      994.3      993.2
  Rental income of persons with capital
   consumption adjustment..................      133.0      127.0       72.8      -11.5       81.5       76.8       71.4       78.3
  Personal income receipts on assets.......    1,336.6    1,427.9    1,519.4    1,532.7    1,580.2    1,602.3    1,647.7    1,683.6
    Personal interest income...............      914.1      890.8      945.0      951.2      981.7      989.1    1,019.2    1,035.8
    Personal dividend income...............      422.6      537.1      574.4      581.5      598.5      613.2      628.5      647.8
  Personal current transfer receipts.......    1,351.0    1,426.5    1,526.6    1,569.0    1,539.8    1,570.4    1,589.7    1,618.6

  Less: Contributions for government
   social insurance........................      778.6      826.4      880.6      888.5      898.9      936.7      938.8      948.9

Less: Personal current taxes...............    1,001.1    1,049.8    1,203.1    1,215.0    1,247.6    1,332.6    1,361.0    1,366.2

Equals: Disposable personal income.........    8,162.5    8,681.6    9,036.1    9,047.7    9,236.1    9,388.8    9,446.2    9,598.3

Less: Personal outlays.....................    7,987.7    8,507.2    9,070.9    9,180.3    9,264.5    9,418.5    9,577.0    9,710.0

Equals: Personal saving....................      174.9      174.3      -34.8     -132.6      -28.5      -29.7     -130.8     -111.7

  Personal saving as a percentage of
   disposable personal income..............        2.1        2.0        -.4       -1.5        -.3        -.3       -1.4       -1.2

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    7,729.9    8,010.8    8,104.6    8,074.1    8,183.3    8,276.8    8,245.4    8,329.6
-----------------------------------------------------------------------------------------------------------------------------------
  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  III 05   IV 05    I 06   II 06  III 06r   2004    2005   IV 05    I 06   II 06  III 06r III 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
 valuation and capital consumption
 adjustments.........................   993.1 1,182.6 1,330.7 1,266.3 1,393.5 1,569.1 1,591.8 1,653.3    19.1    12.5    10.0    12.6     1.4     3.9    30.6

Less: Taxes on corporate income......   243.3   300.1   399.3   378.9   424.6   456.9   476.1   490.6    23.3    33.1    12.1     7.6     4.2     3.0    29.5

Equals: Profits after tax with
 inventory valuation and capital
 consumption adjustments.............   749.9   882.5   931.4   887.5   968.9 1,112.1 1,115.7 1,162.7    17.7     5.5     9.2    14.8      .3     4.2    31.0
  Net dividends......................   424.7   539.5   576.9   584.0   601.0   615.7   631.1   650.4    27.0     6.9     2.9     2.5     2.5     3.1    11.4
  Undistributed profits with
   inventory valuation and capital
   consumption adjustments...........   325.1   343.0   354.5   303.5   367.9   496.4   484.6   512.4     5.5     3.4    21.2    34.9    -2.4     5.7    68.8

Cash flow:
  Net cash flow with inventory
   valuation and capital consumption
   adjustments....................... 1,084.9 1,139.2 1,211.3 1,230.7 1,223.9 1,349.2 1,350.3 1,380.5     5.0     6.3     -.5    10.2      .1     2.2    12.2
    Undistributed profits with
     inventory valuation and capital
     consumption adjustments.........   325.1   343.0   354.5   303.5   367.9   496.4   484.6   512.4     5.5     3.4    21.2    34.9    -2.4     5.7    68.8
    Consumption of fixed capital.....   759.8   796.2   856.8   927.2   856.0   852.8   865.6   868.2     4.8     7.6    -7.7     -.4     1.5      .3    -6.4

  Less: Inventory valuation
   adjustment........................   -13.6   -39.8   -32.6   -30.9   -39.2   -22.9   -58.9   -38.2   .....   .....   .....   .....   .....   .....   .....

  Equals: Net cash flow.............. 1,098.5 1,178.9 1,243.9 1,261.5 1,263.2 1,372.1 1,409.2 1,418.8     7.3     5.5      .1     8.6     2.7      .7    12.5

Addenda:
  Profits before tax (without
   inventory valuation and capital
   consumption adjustments)..........   908.1 1,144.3 1,518.7 1,475.8 1,598.3 1,740.6 1,811.5 1,854.0    26.0    32.7     8.3     8.9     4.1     2.3    25.6
  Profits after tax (without
   inventory valuation and capital
   consumption adjustments)..........   664.8   844.2 1,119.4 1,096.9 1,173.7 1,283.7 1,335.4 1,363.4    27.0    32.6     7.0     9.4     4.0     2.1    24.3
  Inventory valuation adjustment.....   -13.6   -39.8   -32.6   -30.9   -39.2   -22.9   -58.9   -38.2   .....   .....   .....   .....   .....   .....   .....
  Capital consumption adjustment.....    98.7    78.1  -155.5  -178.6  -165.6  -148.6  -160.8  -162.4   .....   .....   .....   .....   .....   .....   .....
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  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  III 05   IV 05    I 06   II 06  III 06r   2004    2005   IV 05    I 06   II 06  III 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------
    Corporate profits with inventory
     valuation and capital consumption
     adjustments.............................   993.1 1,182.6 1,330.7 1,266.3 1,393.5 1,569.1 1,591.8 1,653.3   189.5   148.1   127.2   175.6    22.7    61.5

Domestic industries..........................   827.7 1,006.3 1,133.7 1,042.9 1,197.2 1,343.0 1,351.9 1,418.7   178.6   127.4   154.3   145.8     8.9    66.8
  Financial..................................   335.6   353.7   369.4   296.1   390.8   442.2   483.9   474.8    18.1    15.7    94.7    51.4    41.7    -9.1
  Nonfinancial...............................   492.1   652.6   764.2   746.8   806.4   900.9   868.1   943.9   160.5   111.6    59.6    94.5   -32.8    75.8

Rest of the world............................   165.5   176.3   197.0   223.4   196.3   226.1   239.9   234.6    10.8    20.7   -27.1    29.8    13.8    -5.3
  Receipts from the rest of the world........   249.1   302.0   338.0   344.0   360.6   376.3   402.0   408.9    52.9    36.0    16.6    15.7    25.7     6.9
  Less: Payments to the rest of the world....    83.6   125.8   141.0   120.5   164.2   150.2   162.1   174.2    42.2    15.2    43.7   -14.0    11.9    12.1

    Corporate profits with inventory
     valuation adjustment....................   894.5 1,104.5 1,486.1 1,444.9 1,559.1 1,717.7 1,752.6 1,815.8   210.0   381.6   114.2   158.6    34.9    63.2

Domestic industries..........................   729.0   928.2 1,289.1 1,221.5 1,362.8 1,491.6 1,512.7 1,581.1   199.2   360.9   141.3   128.8    21.1    68.4
  Financial..................................   317.3   344.2   389.0   317.4   413.3   463.9   508.2   500.1    26.9    44.8    95.9    50.6    44.3    -8.1
    Federal Reserve banks....................    20.1    20.0    26.6    26.9    30.4    30.9    33.7    35.8     -.1     6.6     3.5      .5     2.8     2.1
    Other financial..........................   297.2   324.1   362.5   290.6   382.9   433.0   474.4   464.3    26.9    38.4    92.3    50.1    41.4   -10.1

  Nonfinancial...............................   411.8   584.0   900.1   904.1   949.4 1,027.7 1,004.5 1,081.0   172.2   316.1    45.3    78.3   -23.2    76.5
    Utilities................................    11.6    16.2    30.3    22.4    38.3    39.7    46.8    52.8     4.6    14.1    15.9     1.4     7.1     6.0
    Manufacturing............................    76.0   150.2   254.8   260.7   258.9   300.7   289.9   331.9    74.2   104.6    -1.8    41.8   -10.8    42.0
      Durable goods..........................    -5.9    31.3    73.8    75.4    72.9   102.2    78.7   115.9    37.2    42.5    -2.5    29.3   -23.5    37.2
        Fabricated metal products............     7.9    12.3    20.6    22.8    21.2    25.7    24.1    24.8     4.4     8.3    -1.6     4.5    -1.6      .7
        Machinery............................     1.5     7.0    13.8    14.5    15.0    19.1    18.3    18.5     5.5     6.8      .5     4.1     -.8      .2
        Computer and electronic products.....   -15.6    -6.7     3.9     6.7     8.0    12.3    13.1    13.2     8.9    10.6     1.3     4.3      .8      .1
        Electrical equipment, appliances,
         and components......................     2.1      .2     5.7     6.7     5.6     8.4     6.8    10.3    -1.9     5.5    -1.1     2.8    -1.6     3.5
        Motor vehicles, bodies and trailers,
         and parts...........................   -12.3   -11.2   -17.9   -19.8   -25.3   -18.2   -25.4   -16.6     1.1    -6.7    -5.5     7.1    -7.2     8.8
        Other durable goods..................    10.5    29.7    47.7    44.5    48.5    54.9    41.9    65.7    19.2    18.0     4.0     6.4   -13.0    23.8

      Nondurable goods.......................    81.9   118.9   181.0   185.2   186.0   198.5   211.2   216.0    37.0    62.1      .8    12.5    12.7     4.8
        Food and beverage and tobacco
         products............................    23.6    22.4    28.5    29.3    28.6    29.6    29.5    34.4    -1.2     6.1     -.7     1.0     -.1     4.9
        Petroleum and coal products..........    23.3    49.3    70.4    74.2    76.0    74.5    92.4   101.1    26.0    21.1     1.8    -1.5    17.9     8.7
        Chemical products....................    19.5    23.8    45.3    43.3    44.4    54.1    53.6    46.6     4.3    21.5     1.1     9.7     -.5    -7.0
        Other nondurable goods...............    15.5    23.4    36.8    38.4    37.0    40.1    35.7    33.9     7.9    13.4    -1.4     3.1    -4.4    -1.8

    Wholesale trade..........................    55.2    69.9    97.6    94.1   105.9   107.2    98.3   125.1    14.7    27.7    11.8     1.3    -8.9    26.8
    Retail trade.............................    86.8    89.3   113.7   115.9   129.1   123.0   121.2   131.3     2.5    24.4    13.2    -6.1    -1.8    10.1
    Transportation and warehousing...........     7.3    11.8    21.0    23.1    19.0    27.3    38.6    39.6     4.5     9.2    -4.1     8.3    11.3     1.0
    Information..............................     3.2    37.7    77.5    77.8    83.6    89.8    85.9    83.3    34.5    39.8     5.8     6.2    -3.9    -2.6
    Other nonfinancial.......................   171.7   208.8   305.2   310.1   314.6   340.1   323.9   317.1    37.1    96.4     4.5    25.5   -16.2    -6.8

Rest of the world............................   165.5   176.3   197.0   223.4   196.3   226.1   239.9   234.6    10.8    20.7   -27.1    29.8    13.8    -5.3
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  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     III 05      IV 05       I 06      II 06     III 06r
-----------------------------------------------------------------------------------------------------------------------------------
                                                                             Billions of dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business....................    5,558.4    5,932.9    6,369.7    6,425.7    6,534.8    6,788.2    6,790.0    6,919.5

Consumption of fixed capital...............      657.5      686.2      739.7      804.9      737.2      733.7      744.4      746.3

Net value added............................    4,900.9    5,246.7    5,630.1    5,620.8    5,797.6    6,054.5    6,045.7    6,173.2

  Compensation of employees................    3,703.2    3,873.4    4,099.7    4,140.7    4,198.0    4,341.0    4,350.6    4,403.1
    Wage and salary accruals...............    3,019.4    3,158.4    3,335.1    3,369.0    3,414.5    3,537.5    3,539.7    3,581.6
    Supplements to wages and salaries......      683.8      714.9      764.6      771.7      783.5      803.5      811.0      821.5
  Taxes on production and imports less
   subsidies...............................      488.5      522.9      558.1      562.9      567.2      576.7      585.3      586.5
  Net operating surplus....................      709.2      850.4      972.2      917.3    1,032.4    1,136.8    1,109.7    1,183.7
    Net interest and miscellaneous
     payments..............................      152.6      137.8      156.6      159.3      165.1      175.1      180.0      177.2
    Business current transfer payments.....       64.4       60.0       51.4       11.1       60.9       60.9       61.7       62.5
    Corporate profits with inventory
     valuation and capital consumption
     adjustments...........................      492.1      652.6      764.2      746.8      806.4      900.9      868.1      943.9
      Taxes on corporate income............      135.7      185.3      251.4      255.8      266.4      280.9      283.3      299.6
      Profits after tax with inventory
       valuation and capital consumption
       adjustments.........................      356.4      467.4      512.9      491.0      540.0      620.0      584.8      644.3
        Net dividends......................      292.7      366.9      228.5      126.3      120.1      377.7      392.8      407.5
        Undistributed profits with
         inventory valuation and capital
         consumption adjustments...........       63.8      100.5      284.4      364.7      419.9      242.3      192.0      236.8

Addenda:
  Profits before tax (without inventory
   valuation and capital consumption
   adjustments)............................      425.4      623.8      932.6      935.0      988.7    1,050.6    1,063.5    1,119.2
  Profits after tax (without inventory
   valuation and capital consumption
   adjustments)............................      289.7      438.6      681.3      679.2      722.3      769.7      780.2      819.6
  Inventory valuation adjustment...........      -13.6      -39.8      -32.6      -30.9      -39.2      -22.9      -58.9      -38.2
  Capital consumption adjustment...........       80.3       68.6     -135.8     -157.3     -143.0     -126.8     -136.5     -137.1
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business\1\.................    5,387.5    5,630.0    5,852.9    5,875.8    5,927.8    6,111.2    6,069.0    6,177.3

Consumption of fixed capital\2\............      630.5      650.9      681.6      738.9      670.5      666.1      669.2      672.0
Net value added\3\.........................    4,757.1    4,979.2    5,171.2    5,136.9    5,257.3    5,445.0    5,399.8    5,505.3
                                           ----------------------------------------------------------------------------------------
                                                                    Dollars; quarters seasonally adjusted
                                           ----------------------------------------------------------------------------------------
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\...      1.032      1.054      1.088      1.094      1.102      1.111      1.119      1.120

  Compensation of employees (unit labor
   cost)...................................       .687       .688       .700       .705       .708       .710       .717       .713

  Unit nonlabor cost.......................       .253       .250       .257       .262       .258       .253       .260       .255
    Consumption of fixed capital...........       .122       .122       .126       .137       .124       .120       .123       .121
    Taxes on production and imports less
     subsidies plus business current
     transfer payments.....................       .103       .104       .104       .098       .106       .104       .107       .105
    Net interest and miscellaneous payments       .028       .024       .027       .027       .028       .029       .030       .029

  Corporate profits with inventory valuation
   and capital consumption adjustments (unit
   profits from current production)........       .091       .116       .131       .127       .136       .147       .143       .153
    Taxes on corporate income..............       .025       .033       .043       .044       .045       .046       .047       .049
    Profits after tax with inventory
     valuation and capital consumption
     adjustments...........................       .066       .083       .088       .084       .091       .101       .096       .104
-----------------------------------------------------------------------------------------------------------------------------------
  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  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 06  II 06 III 06r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................    2.5    3.9    3.2     .2    1.2    3.5    7.5    2.7    3.9    4.0    3.1    2.6    3.4    3.3    4.2    1.8    5.6    2.6    2.0

  Goods.............................    3.1    4.9    4.6   -5.2    3.9    1.6   16.2    2.5    3.7    3.0    5.0    4.6    4.9    3.5    6.7    3.1   12.8    3.6    3.8
  Services..........................    2.1    3.2    2.3    2.9     .1    3.6    1.9    2.8    4.5    3.0    2.5    2.5    1.8    1.8    3.5     .8    2.4    2.4    2.8
  Structures........................    3.3    5.2    4.6    3.1   -1.0    9.2   14.1    2.2     .5   13.6     .6   -2.7    8.0   11.1     .7    3.1    2.9     .3   -7.4

  Motor vehicle output..............    1.3    3.5    5.9     .5  -11.8   10.9    8.9   -6.5    9.9   -7.1   16.6    1.9   12.0    -.7   22.6  -19.1    3.8   -9.4   27.4
  GDP excuding motor vehicle
   output...........................    2.6    3.9    3.1     .2    1.7    3.2    7.4    3.0    3.6    4.5    2.7    2.6    3.1    3.4    3.6    2.6    5.6    3.0    1.2

  Final sales of computers\1\.......   20.8    8.2   24.5   15.3   16.9   -2.5   90.4   20.0  -16.0  -17.4   23.0   42.8   24.3   31.5   11.6   33.8    9.5    6.7   11.7
  GDP excluding final sales of
   computers........................    2.4    3.9    3.1     .1    1.1    3.5    7.0    2.5    4.0    4.2    3.0    2.4    3.3    3.1    4.1    1.6    5.6    2.5    1.9

  Farm gross value added\2\.........    8.4    7.4    1.0   34.2  -16.1   26.6  -34.7  -36.1  120.0  -17.4   19.4   23.7   -2.0  -24.6   11.3    8.1   14.1    3.9   -2.0

  Nonfarm business gross value
   added\3\.........................    3.1    4.3    3.8     .1    1.2    4.3   11.0    1.6    3.6    5.2    3.2    2.4    4.2    4.4    4.9    1.8    6.7    2.7    1.9

Price indexes:
  GDP...............................    2.1    2.8    3.0    2.2    3.1    1.3    2.1    2.2    3.7    3.7    2.1    3.2    3.5    2.4    3.3    3.3    3.3    3.3    1.9
  GDP excluding food and energy.....    1.9    2.7    3.0    2.0    2.7    1.1    1.7    2.1    3.4    3.4    2.6    3.1    3.4    2.4    2.8    3.3    3.1    3.0    2.2
  GDP excluding final sales of
   computers........................    2.3    2.9    3.2    2.4    3.3    1.4    2.2    2.3    3.8    3.7    2.2    3.4    3.7    2.6    3.4    3.4    3.4    3.5    2.0

  Gross domestic purchases..........    2.3    3.1    3.5    2.2    4.1     .6    2.2    1.9    4.3    4.1    2.6    3.6    3.2    3.3    4.4    3.5    2.7    4.0    2.2
  Gross domestic purchases excluding
   food and energy..................    1.9    2.7    2.8    1.8    2.6    1.3    1.8    2.0    3.5    3.3    2.5    2.9    3.4    2.3    2.5    3.0    3.0    2.9    2.2
  Gross domestic purchases excluding
   final sales of computers to
   domestic purchasers..............    2.5    3.2    3.7    2.4    4.4     .7    2.4    2.0    4.4    4.2    2.8    3.8    3.4    3.5    4.6    3.7    2.9    4.2    2.3

  Personal consumption expenditures
   (PCE)............................    2.0    2.6    2.9    1.7    3.1     .7    2.4    1.5    3.7    3.6    1.9    3.0    2.3    3.1    4.1    2.9    2.0    4.0    2.4
  Personal consumption expenditures
   excluding food and energy........    1.4    2.0    2.1    1.2    1.1    1.3    1.8    1.6    2.5    2.5    1.7    2.3    2.4    1.9    1.6    2.5    2.1    2.7    2.2
  Market-based PCE\4\...............    1.9    2.3    2.7    1.7    3.1     .3    2.2     .9    3.3    3.4    1.5    2.9    2.1    3.1    4.3    2.5    1.7    4.2    2.2
  Market-based PCE excluding food
   and energy\4\....................    1.1    1.5    1.7    1.2     .7    1.0    1.4     .9    1.7    1.9    1.2    1.8    2.2    1.7    1.2    1.9    1.6    2.7    1.9
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised
  1. Some components of final sales of computers include
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 2004-05
annual percent change in real GDP uses prices for 2004 and 2005 as weights, and the 2004-05 annual
percent change in GDP prices uses quantities for 2004 and 2005 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.