News Release

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, THURSDAY, JUNE 28, 2007
BEA 07-30

Gross Domestic Product and Corporate Profits: First Quarter 2007 "final" estimates

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Virginia H. Mannering:  (202)   606-5304   (GDP)                                           BEA 07-30
Andrew Hodge:           (202)   606-5564   (Profits)
Recorded message:       (202)   606-5306


 
                GROSS DOMESTIC PRODUCT: FIRST QUARTER 2007 (FINAL)
                   CORPORATE PROFITS: FIRST QUARTER 2007 (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 0.7 percent in the first quarter of 2007, 
according to final estimates released by the Bureau of Economic Analysis.  In the fourth quarter, real 
GDP increased 2.5 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      
0.6 percent (see "Revisions" on page 3).

	The increase in real GDP in the first quarter primarily reflected positive contributions from  
personal consumption expenditures (PCE) and state and local government spending that were partly 
offset by negative contributions from private inventory investment, residential fixed investment, and 
federal government spending.  Imports, which are a subtraction in the calculation of GDP, increased.


BOX
                  Annual Revision of the National Income and Product Accounts

	The annual revision of the national income and product accounts, covering the first quarter of 
 2004 through the first quarter of 2007, will be released along with the "advance" estimate of GDP for
 the second quarter of 2007 on July 27.  An article describing the revision will appear in the August
 2007 issue of the Survey of Current Business.  For more information, see the Technical Note.





FOOTNOTE.--Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise
specified.  Quarter-to-quarter dollar changes are differences between these published estimates.  Percent 
changes are calculated from unrounded data and annualized.  "Real" estimates are in chained (2000)
dollars.  Prices indexes are chain-type measures.

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


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

	Final sales of computers contributed 0.02 percentage point to the first-quarter growth in real GDP 
after contributing 0.22 percentage point to the fourth-quarter growth.  Motor vehicle output contributed 
0.22 percentage point to the first-quarter growth in real GDP after subtracting 1.18 percentage points 
from the fourth-quarter growth.  

	The price index for gross domestic purchases, which measures prices paid by U.S. residents, 
increased 3.7 percent in the first quarter, 0.1 percentage point more than the preliminary estimate; this 
index increased 0.2 percent in the fourth quarter.  Excluding food and energy prices, the price index for 
gross domestic purchases increased 2.9 percent in the first quarter, compared with an increase of 2.4 
percent in the fourth.  About 0.2 percentage point of the first-quarter increase in the index was accounted 
for by the pay raise for federal civilian and military personnel, which is treated as an increase in the 
price index of employee services purchased by the federal government. 

	Real personal consumption expenditures increased 4.2 percent in the first quarter, the same 
increase as in the fourth.  Real nonresidential fixed investment increased 2.6 percent, in contrast to a 
decrease of 3.1 percent.  Nonresidential structures increased 4.8 percent, compared with an increase of 
0.8 percent.  Equipment and software increased 1.7 percent, in contrast to a decrease of 4.8 percent.  
Real residential fixed investment decreased 15.8 percent, compared with a decrease of 19.8 percent.

	Real exports of goods and services increased 0.7 percent in the first quarter, compared with an 
increase of 10.6 percent in the fourth.  Real imports of goods and services increased 5.5 percent, in 
contrast to a decrease of 2.6 percent.

	Real federal government consumption expenditures and gross investment decreased 3.9 percent in 
the first quarter, in contrast to an increase of 4.6 percent in the fourth.  National defense decreased 7.4 
percent, in contrast to an increase of 12.3 percent.  Nondefense increased 3.6 percent, in contrast to a 
decrease of 9.6 percent.  Real state and local government consumption expenditures and gross 
investment increased 3.9 percent, compared with an increase of 2.7 percent.

	The real change in private inventories subtracted 0.97 percentage point from the first-quarter 
change in real GDP, after subtracting 1.16 percentage points from the fourth-quarter change.  Private 
businesses decreased inventories $4.2 billion in the first quarter, following increases of $22.4 billion in 
the fourth quarter and $55.4 billion in the third.

	Real final sales of domestic product -- GDP less change in private inventories -- increased 1.7 
percent in the first quarter, compared with an increase of 3.7 percent in the fourth.



Gross domestic purchases

	Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever 
produced -- increased 1.4 percent in the first quarter, compared with an increase of 0.8 percent in the 
fourth. 


Gross national product

	Real gross national product -- the goods and services produced by the labor and property supplied 
by U.S. residents -- increased 0.8 percent in the first quarter, compared with an increase of 3.5 percent in 
the fourth.  GNP includes, and GDP excludes, net receipts of income from the rest of the world, which 
increased $2.2 billion in the first quarter after increasing $29.4 billion in the fourth; in the first quarter, 
receipts increased $10.2 billion, and payments increased $8.0 billion.


Current-dollar GDP

	Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 
4.9 percent, or $162.0 billion, in the first quarter to a level of $13,620.2 billion.  In the fourth quarter, 
current-dollar GDP increased 4.1 percent, or $135.6 billion.


Revisions

	The final estimate of the first-quarter increase in real GDP is 0.1 percentage point, or $1.1 billion, 
higher than the preliminary estimate issued last month.  The upward revision to the percent change in 
real GDP primarily reflected an upward revision to exports of goods and services.


                                              Advance      Preliminary       Final
                                            (Percent change from preceding quarter)

Real GDP...............................         1.3            0.6            0.7
Current-dollar GDP.....................         5.3            4.7            4.9
Gross domestic purchases price index...         3.6            3.6            3.7




                                    Corporate Profits

	Profits from current production (corporate profits with inventory valuation and capital 
consumption adjustments) increased $23.0 billion in the first quarter, in contrast to a decrease of $4.9 
billion in the fourth quarter.  Current-production cash flow (net cash flow with inventory valuation and 
capital consumption adjustments) -- the internal funds available to corporations for investment -- 
increased $3.5 billion in the first quarter, in contrast to a decrease of $1.1 billion in the fourth.


	 Taxes on corporate income increased $3.5 billion in the first quarter, in contrast to a decrease of 
$14.4 billion in the fourth.  Profits after tax with inventory valuation and capital consumption 
adjustments increased $19.4 billion in the first quarter, compared with an increase of $9.6 billion in the 
fourth.  Dividends increased $20.6 billion, compared with an increase of $21.0 billion; current-
production undistributed profits decreased $1.2 billion, compared with a decrease of $11.5 billion.

	Domestic profits of financial corporations decreased $23.1 billion in the first quarter, in contrast to 
an increase of $20.5 billion in the fourth.  Domestic profits of nonfinancial corporations increased $25.7 
billion in the first quarter, in contrast to a decrease of $62.6 billion in the fourth.  In the first quarter, 
both real gross corporate value added of nonfinancial corporations and profits per unit of real value 
added increased.  The increase in unit profits reflected an increase in unit prices that was partly offset by 
increases in both the unit labor and nonlabor costs that corporations incurred. 

	The rest-of-the-world component of profits increased $20.2 billion in the first quarter, compared 
with an increase of $37.3 billion in the fourth.  This measure is calculated as (1) receipts by U.S. 
residents of earnings from their foreign affiliates plus dividends received by U.S. residents from 
unaffiliated foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign 
parents plus dividends paid by U.S. corporations to unaffiliated foreign residents.  The first-quarter 
increase was accounted for equally by an increase in receipts and a decrease in payments.

	Profits before tax with inventory valuation adjustment is the best available measure of industry 
profits because estimates of the capital consumption adjustment by industry do not exist.  This measure 
reflects depreciation-accounting practices used for federal income tax returns.  According to this 
measure, domestic profits of financial corporations decreased, while domestic profits of nonfinancial 
corporations increased. The increase in nonfinancial corporations reflected increases in manufacturing, 
in information, and in wholesale trade that were largely offset by decreases in ?other? nonfinancial and 
in retail trade.  Within manufacturing, the most notable increases were in chemical products and in 
petroleum and coal products.   

	Profits before tax increased $24.0 billion in the first quarter, in contrast to a decrease of $16.4 
billion in the fourth.  The before-tax measure of profits does not reflect, as does profits from current 
production, the capital consumption and inventory valuation adjustments.  These adjustments convert 
depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to 
the current-cost measures used in the national income and product accounts.  The capital consumption 
adjustment increased $14.3 billion in the first quarter (from -$171.7 billion to -$157.4 billion), in 
contrast to a decrease of $9.3 billion in the fourth.  The inventory valuation adjustment decreased $15.3 
billion (from -$17.5 billion to -$32.8 billion), in contrast to an increase of $20.7 billion. 





     BEA's national, international, regional, and industry estimates; the Survey of Current Business; and
BEA news releases are available without charge on BEA's Web site at www.bea.gov.  By visiting the 
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                          *          *          *




                 Next release -- July 27, 2007 at 8:30 A.M. EDT for:
                 Advance estimate of gross domestic product for
                 the second quarter of 2007 and annual revision
                 (first quarter 2004 through first quarter 2007).


                           

			- more -




                                    Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2004   2005   2006  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 06  IV 06   I 07r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    3.9    3.2    3.3    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    2.5     .7

Personal consumption expenditures...    3.9    3.5    3.2    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    4.2    4.2
  Durable goods.....................    6.4    5.5    5.0   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    4.4    8.7
  Nondurable goods..................    3.6    4.5    3.7    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    5.9    3.2
  Services..........................    3.5    2.6    2.6    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    3.4    3.8

Gross private domestic investment...    9.8    5.4    4.3    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  -15.2   -9.6
  Fixed investment..................    7.3    7.5    2.9   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   -9.1   -3.9
    Nonresidential..................    5.9    6.8    7.2   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   -3.1    2.6
      Structures....................    2.2    1.1    9.0   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     .8    4.8
      Equipment and software........    7.3    8.9    6.5    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   -4.8    1.7
    Residential.....................    9.9    8.6   -4.2   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  -19.8  -15.8
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    9.2    6.8    8.9   -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   10.6     .7
    Goods...........................    9.0    7.5   10.5   -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    8.4     .2
    Services........................    9.7    5.1    5.4   -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   16.3    1.9
  Imports...........................   10.8    6.1    5.8    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   -2.6    5.5
    Goods...........................   10.9    6.7    5.9    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   -4.1    6.0
    Services........................   10.0    2.8    5.3  -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    6.2    2.8

Government consumption expenditures
 and gross investment...............    1.9     .9    2.1    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    3.4    1.0
  Federal...........................    4.3    1.5    2.0   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    4.6   -3.9
    National defense................    5.9    1.7    1.9   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   12.3   -7.4
    Nondefense......................    1.2    1.1    2.1   -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   -9.6    3.6
  State and local...................     .5     .5    2.1    -.8    2.1    -.6     .5    2.1    -.9     .1     .6    1.5    -.1    1.0    2.7    4.0    1.9    2.7    3.9

Addenda:
  Final sales of domestic product...    3.5    3.5    3.1    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    3.7    1.7
  Gross domestic purchases..........    4.4    3.3    3.2    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     .8    1.4
  Final sales to domestic
   purchasers.......................    4.0    3.6    2.9    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    1.9    2.4
  Gross national product (GNP)......    3.8    3.1    3.3    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    3.5     .8
  Disposable personal income........    3.6    1.2    2.6    5.0    6.3    1.7    3.9    2.4    2.8    7.5   -4.0     .5    -.6    5.5    4.6   -1.5    3.2    6.4    4.8

  Current-dollar measures:
    GDP.............................    6.9    6.3    6.3    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    4.1    4.9
    Final sales of domestic product.    6.5    6.7    6.1    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    5.4    5.9
    Gross domestic purchases........    7.6    6.9    6.4    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    1.0    5.1
    Final sales to domestic
     purchasers.....................    7.2    7.2    6.1    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    2.1    6.1
    GNP.............................    6.7    6.2    6.3    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    5.2    5.0
    Disposable personal income......    6.4    4.1    5.5    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    5.7    5.4    8.5
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2004   2005   2006  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 06  IV 06   I 07r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

    Gross domestic product..........    3.9    3.2    3.3    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    2.5     .7

Percentage points at annual rates:

  Personal consumption expenditures.   2.71   2.44   2.24   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   2.93   2.89

    Durable goods...................    .54    .45    .41   1.35   1.39    .06    .51    .14    .71    .50    .20   1.02    .74  -1.08   1.50   -.01    .50    .35    .67
      Motor vehicles and parts......    .07    .02   -.04    .65    .46   -.29    .09   -.14    .22    .17   -.29    .50    .38  -1.51    .60   -.04    .28   -.15    .38
      Furniture and household
       equipment....................    .35    .29    .36    .49    .67    .27    .33    .28    .36    .21    .27    .28    .40    .33    .65    .10    .20    .38    .27
      Other.........................    .11    .14    .09    .21    .26    .08    .10    .01    .13    .12    .21    .24   -.03    .10    .26   -.06    .03    .12    .03

    Nondurable goods................    .73    .90    .76    .45   1.53    .36    .86    .34    .74   1.07   1.04    .98    .70    .79   1.20    .30    .32   1.18    .65
      Food..........................    .33    .51    .41    .04    .61    .02    .54    .16    .28    .70    .53    .55    .61    .39    .64    .19   -.07    .62    .14
      Clothing and shoes............    .14    .17    .14    .29    .31   -.02    .32   -.14    .18    .19    .17    .25    .08    .27    .23   -.10    .15    .18    .21
      Gasoline, fuel oil, and other
       energy goods.................    .02   -.01   -.02   -.02    .10    .06    .00    .00   -.04    .01    .12   -.10   -.15   -.06   -.03    .02    .14    .03    .14
      Other.........................    .24    .23    .23    .14    .52    .30    .00    .32    .32    .16    .21    .28    .16    .19    .36    .19    .11    .35    .17

    Services........................   1.45   1.09   1.07    .73   1.21   1.18   1.92   1.59   1.30   1.39    .70    .94   1.32    .83    .67   1.52   1.14   1.41   1.57
      Housing.......................    .40    .30    .24    .18    .35    .40    .49    .42    .37    .32    .29    .28    .24    .18    .24    .25    .27    .33    .24
      Household operation...........    .10    .08   -.02    .00    .02    .17    .11    .10    .06    .25    .01    .04    .09    .01   -.58    .31    .35    .13    .30
        Electricity and gas.........    .02    .04   -.05   -.08   -.03    .12    .06   -.06   -.07    .25    .00    .00    .03    .03   -.58    .23    .32    .08    .26
        Other household operation...    .08    .04    .03    .08    .05    .05    .05    .16    .13    .00    .01    .04    .06   -.02    .00    .08    .04    .05    .04
      Transportation................    .03    .00    .04   -.03    .03    .02    .05    .06    .00    .04    .02   -.03   -.04    .00    .10    .04    .03    .10    .08
      Medical care..................    .37    .43    .42    .28    .28    .28    .33    .47    .53    .43    .32    .40    .53    .44    .52    .31    .25    .42    .51
      Recreation....................    .14    .08    .06    .15    .13    .16    .18    .13    .09    .05    .13    .05    .05    .04    .09    .02    .08    .09   -.02
      Other.........................    .41    .20    .33    .16    .40    .15    .76    .42    .24    .30   -.07    .20    .44    .16    .31    .58    .15    .33    .46

  Gross private domestic investment.   1.49    .87    .70    .51   2.56   1.39    .74   3.17    .32    .82   1.32   -.61    .84   2.51   1.31    .17   -.13  -2.71  -1.59

    Fixed investment................   1.11   1.17    .47   1.52   2.00    .83    .34   1.72   1.16    .77   1.22   1.62   1.02    .46   1.34   -.27   -.19  -1.54   -.62
      Nonresidential................    .58    .67    .73   1.01    .92    .29    .18    .69    .97    .81    .59    .51    .59    .52   1.36    .45   1.01   -.34    .27
        Structures..................    .06    .03    .26    .35   -.02   -.12    .08    .17    .08   -.05    .14   -.06   -.20    .31    .25    .56    .46    .03    .15
        Equipment and software......    .52    .64    .47    .66    .95    .41    .10    .52    .90    .86    .45    .56    .78    .21   1.11   -.10    .55   -.36    .12
          Information processing
           equipment and software...    .36    .30    .31    .13    .82    .70    .30    .05    .21    .33    .43    .29    .26    .25    .74   -.04    .35   -.07    .60
            Computers and peripheral
             equipment..............    .10    .12    .10    .00    .26    .21   -.03   -.03    .21    .17    .10    .10    .06    .16    .15    .03    .13    .00    .26
            Software................    .15    .09    .10    .05    .32    .20    .17    .03    .12    .16    .03    .12    .07    .04    .18    .07    .09    .05    .13
            Other...................    .11    .10    .11    .08    .23    .29    .16    .05   -.12    .00    .30    .06    .13    .04    .40   -.14    .13   -.11    .21
          Industrial equipment......   -.05    .10    .07    .14   -.14   -.22   -.09   -.05    .19    .05    .16   -.07    .23    .19   -.05    .16    .00   -.07   -.04
          Transportation equipment..    .14    .15    .00    .31    .01   -.13   -.08    .46    .39    .40   -.14    .11    .27   -.31    .31   -.32    .15   -.22   -.13
          Other equipment...........    .07    .09    .08    .08    .26    .07   -.04    .06    .10    .08    .01    .24    .03    .08    .11    .09    .05   -.01   -.31
      Residential...................    .53    .50   -.27    .51   1.08    .55    .16   1.03    .18   -.04    .63   1.11    .43   -.06   -.02   -.72  -1.20  -1.21   -.89

    Change in private inventories...    .38   -.30    .23  -1.01    .56    .56    .40   1.44   -.84    .05    .09  -2.23   -.18   2.05   -.03    .44    .06  -1.16   -.97
      Farm..........................    .07   -.06    .03   -.16   -.06   -.05    .27    .61   -.48   -.38    .16   -.26    .28    .14   -.01   -.09    .02   -.01    .01
      Nonfarm.......................    .31   -.24    .21   -.85    .62    .60    .13    .84   -.35    .43   -.06  -1.97   -.46   1.90   -.02    .54    .05  -1.15   -.98

  Net exports of goods and services.   -.65   -.26   -.02   -.73    .51   -.47   -.73  -1.62   -.20   -.81   -.16    .72   -.06  -1.07   -.04    .42   -.19   1.59   -.81

    Exports.........................    .88    .68    .93   -.16   1.02   1.81    .69    .60    .46    .96    .47    .94    .33    .97   1.41    .66    .73   1.14    .08
      Goods.........................    .60    .52    .76   -.08    .55   1.20    .47    .43    .55    .42    .38    .88    .27    .80   1.20    .45    .71    .65    .01
      Services......................    .28    .16    .17   -.08    .47    .61    .22    .17   -.09    .54    .09    .06    .06    .17    .21    .21    .03    .50    .06

    Imports.........................  -1.53   -.94   -.95   -.57   -.51  -2.29  -1.42  -2.22   -.66  -1.77   -.63   -.22   -.39  -2.04  -1.46   -.24   -.93    .45   -.88
      Goods.........................  -1.29   -.87   -.82   -.97   -.07  -1.86  -1.17  -2.03   -.59  -1.55   -.64   -.26   -.36  -1.84  -1.27    .01  -1.00    .61   -.81
      Services......................   -.24   -.07   -.14    .40   -.44   -.43   -.25   -.18   -.08   -.22    .01    .04   -.03   -.20   -.19   -.25    .07   -.16   -.07

  Government consumption expenditures
   and gross investment.............    .36    .17    .40   1.16    .29    .14    .55    .43    .24   -.37    .31    .21    .64   -.21    .94    .16    .32    .64    .19

    Federal.........................    .30    .11    .14   1.26    .03    .21    .49    .18    .34   -.38    .23    .03    .66   -.33    .61   -.32    .09    .31   -.28
      National defense..............    .27    .08    .09   1.41   -.25    .35    .41    .09    .41   -.45    .21    .13    .52   -.49    .41   -.09   -.06    .55   -.36
        Consumption expenditures....    .22    .05    .05   1.30   -.32    .31    .40    .00    .34   -.44    .25    .03    .45   -.47    .37   -.17   -.04    .43   -.30
        Gross investment............    .05    .03    .04    .12    .07    .05    .00    .10    .08   -.01   -.04    .10    .07   -.02    .05    .08   -.02    .11   -.06
      Nondefense....................    .03    .03    .05   -.16    .28   -.14    .09    .08   -.07    .08    .03   -.11    .14    .16    .20   -.23    .15   -.23    .08
       Consumption expenditures.....    .03    .00    .04   -.21    .27   -.12    .11    .03   -.06    .05    .01   -.09    .08    .05    .16   -.10    .13   -.19    .11
       Gross investment.............    .00    .02    .01    .06    .01   -.03   -.03    .05   -.01    .03    .01   -.02    .06    .11    .03   -.12    .02   -.04   -.03

    State and local.................    .06    .06    .26   -.10    .26   -.07    .06    .25   -.10    .01    .08    .18   -.01    .13    .33    .48    .23    .33    .47
        Consumption expenditures....    .10    .08    .18   -.07   -.04    .07    .19    .15    .08    .15    .02    .05    .14    .09    .17    .20    .30    .33    .26
        Gross investment............   -.04   -.02    .08   -.02    .30   -.15   -.13    .11   -.18   -.14    .06    .13   -.15    .03    .16    .28   -.08    .00    .21

Addenda:
    Goods...........................   1.56   1.43   1.90    .56   5.00    .81   1.20    .99   1.56   1.43   1.51   1.09   2.07    .97   3.86   1.12   1.17   1.25   -.32
    Services........................   1.84   1.31   1.37   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   2.32   1.63
    Structures......................    .51    .49    .05    .85   1.33    .22    .05   1.31    .06   -.29    .82   1.13    .09    .33    .33    .04   -.84  -1.11   -.61
    Motor vehicle output............    .12    .20   -.06    .36    .30   -.23    .33   -.24    .52    .06    .38   -.03    .70   -.71    .12   -.31    .76  -1.18    .22
    Final sales of computers........    .06    .16    .11   -.02    .50    .15   -.13   -.14    .15    .26    .16    .20    .08    .20    .07    .04    .07    .22    .02
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                            --------------------------------------------          --------------------------------------------  -------------------------
                                       2006     I 06    II 06   III 06    IV 06     I 07r    2006     I 06    II 06   III 06    IV 06     I 07r    2006    IV 06     I 07r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 13,246.6 13,008.4 13,197.3 13,322.6 13,458.2 13,620.2 11,415.3 11,316.4 11,388.1 11,443.5 11,513.0 11,532.8    366.7     69.5     19.8

Personal consumption expenditures.  9,268.9  9,079.2  9,228.1  9,346.7  9,421.8  9,601.0  8,091.4  8,003.8  8,055.0  8,111.2  8,195.9  8,280.7    250.2     84.7     84.8

  Durable goods...................  1,070.3  1,064.1  1,061.8  1,075.5  1,079.8  1,097.5  1,202.9  1,190.5  1,190.3  1,208.8  1,221.9  1,247.7     57.6     13.1     25.8
    Motor vehicles and parts......    444.7    442.7    441.7    451.3    443.3    454.1    447.4    445.1    443.7    452.9    447.8    460.8     -5.5     -5.1     13.0
    Furniture and household
     equipment....................    404.6    402.3    401.3    403.2    411.4    416.3    550.5    538.5    542.9    551.7    569.1    581.7     59.9     17.4     12.6
    Other.........................    221.0    219.1    218.8    221.0    225.2    227.1    224.5    224.6    222.5    223.4    227.5    228.3     11.9      4.1       .8

  Nondurable goods................  2,714.9  2,658.2  2,721.4  2,747.7  2,732.1  2,788.0  2,362.0  2,342.8  2,351.1  2,360.1  2,394.0  2,413.2     85.2     33.9     19.2
    Food..........................  1,281.1  1,262.3  1,274.0  1,280.7  1,307.5  1,327.6  1,110.9  1,103.4  1,108.8  1,106.8  1,124.5  1,128.4     45.2     17.7      3.9
    Clothing and shoes............    358.6    355.4    355.1    358.7    365.3    373.0    392.5    391.1    387.4    392.6    399.1    406.7     19.8      6.5      7.6
    Gasoline, fuel oil, and other
     energy goods.................    338.3    316.2    359.1    369.4    308.5    326.0    197.6    196.0    196.3    198.7    199.3    202.2     -1.9       .6      2.9
    Other.........................    736.8    724.2    733.3    738.9    750.8    761.5    671.1    662.6    668.3    671.5    682.2    687.4     27.2     10.7      5.2

  Services........................  5,483.7  5,356.8  5,444.9  5,523.5  5,609.8  5,715.6  4,550.4  4,494.5  4,535.4  4,566.6  4,605.2  4,648.6    113.8     38.6     43.4
    Housing.......................  1,382.2  1,345.4  1,370.1  1,394.2  1,419.2  1,439.9  1,148.7  1,137.6  1,144.5  1,151.7  1,160.8  1,167.5     26.1      9.1      6.7
    Household operation...........    506.4    494.8    499.1    512.3    519.2    538.8    416.2    404.3    412.5    422.1    425.8    434.0     -1.8      3.7      8.2
      Electricity and gas.........    212.2    206.2    206.9    216.6    219.2    235.2    149.9    141.7    147.0    154.4    156.4    162.5     -3.9      2.0      6.1
      Other household operation...    294.1    288.6    292.2    295.7    300.0    303.6    267.4    264.8    267.0    268.1    269.6    270.9      3.3      1.5      1.3
    Transportation................    337.1    330.4    335.9    339.5    342.7    346.6    288.4    286.3    287.5    288.5    291.2    293.4      4.0      2.7      2.2
    Medical care..................  1,588.5  1,557.2  1,578.2  1,597.5  1,621.0  1,660.1  1,305.0  1,292.6  1,300.9  1,307.6  1,319.0  1,333.0     44.1     11.4     14.0
    Recreation....................    379.4    372.4    377.2    382.7    385.1    385.8    319.7    317.5    318.1    320.4    323.0    322.5      6.6      2.6      -.5
    Other.........................  1,290.2  1,256.5  1,284.3  1,297.3  1,322.6  1,344.3  1,071.1  1,054.9  1,070.6  1,074.8  1,083.9  1,096.7     34.9      9.1     12.8

Gross private domestic investment.  2,212.5  2,214.8  2,237.1  2,235.5  2,162.6  2,119.3  1,945.6  1,963.6  1,968.5  1,964.8  1,885.6  1,838.8     79.3    -79.2    -46.8

  Fixed investment................  2,162.9  2,167.7  2,174.8  2,171.4  2,137.6  2,126.4  1,894.7  1,914.6  1,906.8  1,901.3  1,856.3  1,838.1     52.7    -45.0    -18.2
    Nonresidential................  1,396.2  1,359.2  1,384.3  1,420.8  1,420.5  1,436.6  1,312.4  1,288.8  1,302.8  1,334.2  1,323.7  1,332.3     88.6    -10.5      8.6
      Structures..................    411.2    378.2    406.3    426.9    433.5    439.1    274.0    259.6    271.9    282.0    282.6    285.9     22.5       .6      3.3
      Equipment and software......    985.0    981.0    977.9    994.0    987.0    997.5  1,048.6  1,044.8  1,041.2  1,060.7  1,047.8  1,052.2     63.7    -12.9      4.4
        Information processing
         equipment and software...    484.3    482.4    479.9    489.6    485.2    504.6    601.2    595.9    594.3    608.6    605.9    631.4     48.6     -2.7     25.5
          Computers and peripheral
           equipment..............     86.5     88.0     85.9     87.2     85.1     92.0    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    208.3    203.6    207.0    210.8    212.0    217.3    219.3    215.6    217.8    221.0    222.6    227.2     13.1      1.6      4.6
          Other...................    189.4    190.8    187.1    191.7    188.1    195.3    209.2    211.6    206.7    211.3    207.1    214.9     15.6     -4.2      7.8
        Industrial equipment......    169.0    163.4    170.1    172.0    170.6    170.7    152.2    149.0    153.9    153.9    151.9    150.6      8.7     -2.0     -1.3
        Transportation equipment..    158.5    165.7    155.9    157.5    154.8    155.4    145.7    152.2    142.7    147.3    140.5    136.5       .3     -6.8     -4.0
        Other equipment...........    173.2    169.4    172.1    174.9    176.5    166.8    157.1    154.3    157.1    158.6    158.3    149.0      9.8      -.3     -9.3
    Residential...................    766.7    808.5    790.6    750.5    717.1    689.8    582.2    618.5    600.5    570.3    539.7    517.1    -25.8    -30.6    -22.6

  Change in private inventories...     49.6     47.2     62.3     64.2     24.9     -7.1     43.2     41.2     53.7     55.4     22.4     -4.2     23.6    -33.0    -26.6
    Farm..........................      3.1      5.4      2.3      2.5      2.2      2.1      2.8      4.3      1.9      2.5      2.4      2.6      2.6      -.1       .2
    Nonfarm.......................     46.5     41.8     59.9     61.6     22.7     -9.2     40.6     36.8     52.2     53.3     20.0     -7.5     21.0    -33.3    -27.5

Net exports of goods and services.   -762.5   -765.2   -781.8   -801.7   -701.2   -718.0   -618.0   -636.6   -624.2   -628.8   -582.6   -606.2      1.2     46.2    -23.6

  Exports.........................  1,466.2  1,405.4  1,448.1  1,488.3  1,523.0  1,540.9  1,302.8  1,269.3  1,288.5  1,310.0  1,343.5  1,345.7    106.7     33.5      2.2
    Goods.........................  1,035.4    989.3  1,019.1  1,055.8  1,077.4  1,088.5    931.4    906.2    919.5    940.4    959.5    960.0     88.2     19.1       .5
    Services......................    430.8    416.0    429.0    432.5    445.6    452.4    372.0    363.6    369.5    370.3    384.5    386.3     19.1     14.2      1.8

  Imports.........................  2,228.7  2,170.6  2,229.8  2,290.1  2,224.2  2,258.9  1,920.9  1,905.9  1,912.7  1,938.8  1,926.1  1,951.9    105.6    -12.7     25.8
    Goods.........................  1,879.5  1,832.6  1,879.0  1,938.8  1,867.5  1,898.2  1,641.5  1,631.9  1,631.7  1,660.1  1,642.6  1,666.6     91.6    -17.5     24.0
    Services......................    349.2    338.1    350.8    351.3    356.6    360.7    281.6    276.6    283.2    281.3    285.5    287.5     14.1      4.2      2.0

Government consumption expenditures
 and gross investment.............  2,527.7  2,479.6  2,513.9  2,542.1  2,575.1  2,617.8  1,998.4  1,987.1  1,991.2  1,999.4  2,016.1  2,021.1     40.4     16.7      5.0

  Federal.........................    926.6    921.7    919.7    927.2    937.7    943.1    741.9    745.1    736.6    738.9    747.2    739.8     14.4      8.3     -7.4
    National defense..............    621.0    613.5    616.5    618.1    635.8    633.5    492.8    491.8    489.3    487.8    502.2    492.7      9.2     14.4     -9.5
      Consumption expenditures....    542.0    537.7    537.7    539.3    553.0    552.7    418.1    419.0    414.7    413.7    424.8    417.2      4.8     11.1     -7.6
      Gross investment............     79.0     75.8     78.8     78.8     82.7     80.9     76.4     74.0     76.5     75.9     79.4     77.4      5.2      3.5     -2.0
    Nondefense....................    305.6    308.2    303.2    309.0    301.9    309.6    248.9    253.1    247.0    250.9    244.7    246.8      5.2     -6.2      2.1
      Consumption expenditures....    266.1    265.9    264.6    269.8    264.0    272.5    211.2    212.8    210.1    213.4    208.5    211.2      3.9     -4.9      2.7
      Gross investment............     39.5     42.4     38.6     39.3     37.9     37.1     38.2     41.1     37.2     37.8     36.4     35.6      1.5     -1.4      -.8

  State and local.................  1,601.1  1,557.9  1,594.2  1,614.9  1,637.4  1,674.7  1,256.4  1,242.0  1,254.4  1,260.3  1,268.7  1,281.0     26.0      8.4     12.3
      Consumption expenditures....  1,288.3  1,256.2  1,280.7  1,300.0  1,316.5  1,341.2  1,006.0    996.1  1,001.2  1,009.0  1,017.5  1,024.2     18.0      8.5      6.7
      Gross investment............    312.8    301.7    313.5    315.0    320.9    333.5    250.2    245.7    253.1    251.1    251.0    256.6      8.1      -.1      5.6

Residual..........................    .....    .....    .....    .....    .....    .....    -85.8    -78.7    -77.6    -88.3    -97.4   -119.4    .....    .....    .....

Addenda:
  Final sales of domestic product. 13,197.0 12,961.2 13,135.1 13,258.4 13,433.3 13,627.2 11,365.8 11,269.0 11,328.0 11,381.6 11,484.5 11,532.2    340.6    102.9     47.7
  Gross domestic purchases........ 14,009.1 13,773.6 13,979.1 14,124.3 14,159.4 14,338.2 12,027.3 11,946.3 12,005.9 12,066.6 12,090.6 12,133.6    367.6     24.0     43.0
  Final sales to domestic
   purchasers..................... 13,959.5 13,726.4 13,916.8 14,060.1 14,134.5 14,345.3 11,977.8 11,898.7 11,945.9 12,004.7 12,062.0 12,132.8    341.7     57.3     70.8

  Gross domestic product.......... 13,246.6 13,008.4 13,197.3 13,322.6 13,458.2 13,620.2 11,415.3 11,316.4 11,388.1 11,443.5 11,513.0 11,532.8    366.7     69.5     19.8
  Plus: Income receipts from
   the rest of the world..........    665.6    603.3    661.4    682.3    715.5    733.7    574.8    526.4    571.4    586.5    614.7    624.9    117.9     28.2     10.2
  Less: Income payments to
   the rest of the world..........    635.7    574.3    638.6    665.7    664.4    679.8    547.7    499.7    550.3    570.9    569.7    577.7    120.5     -1.2      8.0
  Equals: Gross national product.. 13,276.5 13,037.4 13,220.1 13,339.2 13,509.3 13,674.0 11,441.7 11,342.7 11,408.5 11,458.5 11,557.3 11,579.2    363.8     98.8     21.9

  Net domestic product............ 11,669.8 11,460.3 11,624.6 11,740.6 11,853.6 12,001.7  9,983.1  9,896.5  9,959.8 10,007.3 10,068.9 10,081.6    425.9     61.6     12.7
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2004   2005   2006  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 06  IV 06   I 07r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.8    3.0    2.9    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    1.7    4.2

Personal consumption expenditures...    2.6    2.9    2.7     .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   -1.0    3.5
  Durable goods.....................   -1.6    -.7   -1.3   -4.2   -4.0   -3.5     .0     .3   -2.3     .3     .3    -.6   -2.9   -1.3   -1.0    -.8   -1.1   -2.7   -1.9
  Nondurable goods..................    3.3    3.6    3.1   -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   -7.7    5.0
  Services..........................    3.2    3.2    3.4    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    2.9    3.8

Gross private domestic investment...    3.3    3.4    3.2    -.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    3.4    1.9
  Fixed investment..................    3.4    3.5    3.3    -.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    3.4    1.8
    Nonresidential..................    1.2    2.6    2.9   -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    3.1    2.0
      Structures....................    6.2   11.3   11.4    -.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    5.5     .5
      Equipment and software........    -.4    -.4    -.2   -1.7     .1     .4    -.9     .2   -1.5    -.5     .9    -.4   -1.5   -1.0     .6     .1    -.9    2.1    2.6
    Residential.....................    7.3    5.1    4.0     .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    3.9    1.6
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    3.7    3.6    3.3    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    -.9    4.1
    Goods...........................    3.7    3.1    3.3    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     .0    4.0
    Services........................    3.5    4.8    3.3    -.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   -3.1    4.3
  Imports...........................    5.0    6.3    4.3   -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   -8.6     .9
    Goods...........................    5.0    6.5    4.5   -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  -10.2     .7
    Services........................    5.1    5.4    3.4   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     .1    1.8

Government consumption expenditures
 and gross investment...............    4.4    5.6    4.4    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    1.8    5.8
  Federal...........................    4.7    4.8    3.5    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     .0    6.5
    National defense................    4.7    5.1    3.4    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    -.3    6.4
    Nondefense......................    4.7    4.1    3.5    1.6     .6     .6   13.7    4.3     .9    2.3   10.6    1.8    3.2    -.7    9.5    3.2    1.4     .8    6.7
  State and local...................    4.3    6.2    4.9    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    2.9    5.3

Addenda:
  Final sales of domestic product...    2.8    3.0    3.0    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    1.7    4.2
  Gross domestic purchases..........    3.1    3.5    3.1     .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     .2    3.7
  Final sales to domestic
   purchasers.......................    3.1    3.5    3.1     .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     .2    3.6
  Gross national product (GNP)......    2.8    3.0    2.9    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    1.7    4.2

  Implicit price deflators:
    GDP.............................    2.8    3.0    2.9    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    1.6    4.2
    Gross domestic purchases........    3.1    3.5    3.1     .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     .2    3.7
    GNP.............................    2.8    3.0    2.9    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    1.6    4.2
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2004       2005       2006       I 06      II 06     III 06      IV 06       I 07r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    109.031    112.546    116.281    115.274    116.004    116.569    117.277    117.478

Personal consumption expenditures..........    112.430    116.349    120.062    118.761    119.521    120.355    121.612    122.870
  Durable goods............................    125.753    132.666    139.329    137.893    137.868    140.019    141.534    144.523
  Nondurable goods.........................    111.913    116.924    121.301    120.313    120.742    121.204    122.947    123.929
  Services.................................    110.055    112.925    115.822    114.398    115.440    116.234    117.215    118.320

Gross private domestic investment..........    102.026    107.537    112.109    113.143    113.429    113.215    108.649    105.955
  Fixed investment.........................    102.080    109.708    112.851    114.033    113.570    113.240    110.561    109.478
    Nonresidential.........................     92.995     99.326    106.519    104.606    105.738    108.292    107.440    108.132
      Structures...........................     79.418     80.302     87.496     82.893     86.819     90.044     90.228     91.281
      Equipment and software...............     98.400    107.180    114.121    113.704    113.313    115.434    114.032    114.504
    Residential............................    125.281    136.050    130.283    138.391    134.368    127.601    120.770    115.703
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............    102.201    109.105    118.841    115.783    117.536    119.495    122.549    122.755

Imports of goods and services..............    115.962    123.007    130.162    129.146    129.608    131.378    130.516    132.264

Government consumption expenditures and
 gross investment..........................    112.720    113.731    116.081    115.423    115.657    116.136    117.107    117.398
  Federal..................................    123.813    125.701    128.191    128.728    127.262    127.669    129.106    127.814
  State and local..........................    107.094    107.660    109.934    108.682    109.762    110.277    111.016    112.088

Addenda:
  Final sales of domestic product..........    109.096    112.958    116.447    115.455    116.060    116.609    117.663    118.152
  Gross domestic purchases.................    110.691    114.351    117.956    117.161    117.746    118.341    118.577    118.998
  Final sales to domestic purchasers.......    110.761    114.755    118.125    117.345    117.810    118.390    118.955    119.653
  Gross national product...................    109.039    112.399    116.090    115.085    115.753    116.260    117.263    117.485
-----------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2004       2005       2006       I 06      II 06     III 06      IV 06       I 07r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    109.429    112.744    116.062    114.967    115.905    116.446    116.930    118.131

Personal consumption expenditures
 (PCE).....................................    108.373    111.493    114.556    113.445    114.573    115.241    114.966    115.955
  Durable goods............................     90.845     90.198     88.981     89.385     89.206     88.967     88.366     87.954
  Nondurable goods.........................    107.617    111.530    114.959    113.484    115.769    116.442    114.141    115.553
  Services.................................    112.863    116.529    120.509    119.194    120.059    120.960    121.824    122.960

Gross private domestic investment..........    106.645    110.284    113.834    112.860    113.717    113.895    114.864    115.418
  Fixed investment.........................    106.811    110.542    114.178    113.238    114.074    114.224    115.175    115.704
    Nonresidential.........................    100.834    103.428    106.390    105.471    106.266    106.501    107.321    107.847
      Structures...........................    120.951    134.647    149.972    145.684    149.432    151.372    153.402    153.606
      Equipment and software...............     94.503     94.134     93.926     93.887     93.920     93.704     94.194     94.804
    Residential............................    120.618    126.714    131.757    130.765    131.696    131.655    132.911    133.436
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............    105.151    108.949    112.537    110.737    112.400    113.631    113.379    114.519

Imports of goods and services..............    104.678    111.268    116.043    113.918    116.608    118.143    115.503    115.757

Government consumption expenditures and
 gross investment..........................    114.718    121.183    126.484    124.791    126.262    127.150    127.731    129.530
  Federal..................................    115.249    120.726    124.892    123.721    124.871    125.482    125.495    127.495
  State and local..........................    114.417    121.463    127.434    125.434    127.095    128.147    129.061    130.743

Addenda:
  PCE excluding food and energy............    107.314    109.559    111.974    110.983    111.738    112.337    112.838    113.512
  Market-based PCE\1\......................    107.393    110.339    113.171    112.116    113.272    113.879    113.417    114.437
  Market-based PCE excluding food
   and energy\1\...........................    105.865    107.713    109.706    108.810    109.524    110.033    110.457    111.109
  Final sales of domestic product..........    109.455    112.783    116.115    115.025    115.961    116.498    116.978    118.176
  Gross domestic purchases.................    109.210    112.981    116.498    115.313    116.455    117.080    117.145    118.202
  Final sales to domestic purchasers.......    109.235    113.021    116.552    115.371    116.510    117.133    117.192    118.246
  Gross national product...................    109.419    112.733    116.055    114.958    115.897    116.440    116.924    118.123

  Implicit price deflators:
    Gross domestic product.................    109.426    112.737    116.043    114.951    115.887    116.420    116.895    118.100
    Final sales of domestic product........    109.455    112.783    116.112    115.017    115.952    116.490    116.969    118.167
    Gross domestic purchases...............    109.207    112.975    116.477    115.296    116.435    117.053    117.110    118.170
    Final sales to domestic purchasers.....    109.235    113.021    116.544    115.360    116.499    117.122    117.182    118.236
    Gross national product.................    109.416    112.726    116.036    114.942    115.879    116.414    116.889    118.091
-----------------------------------------------------------------------------------------------------------------------------------
  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
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           1991    1992    1993    1994    1995    1996    1997    1998    1999    2000    2001    2002    2003    2004    2005    2006
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     -.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     3.3

Personal consumption expenditures......      .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     3.2
  Durable goods........................    -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     5.0
  Nondurable goods.....................     -.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     3.7
  Services.............................     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     2.6

Gross private domestic investment......    -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     4.3
  Fixed investment.....................    -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     2.9
    Nonresidential.....................    -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     7.2
      Structures.......................   -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     9.0
      Equipment and software...........    -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     6.5
    Residential........................    -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    -4.2
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................     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     8.9
    Goods..............................     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    10.5
    Services...........................     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     5.4
  Imports..............................     -.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     5.8
    Goods..............................     -.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     5.9
    Services...........................    -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     5.3

Government consumption expenditures
 and gross investment..................     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     2.1
  Federal..............................     -.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     2.0
    National defense...................    -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     1.9
    Nondefense.........................     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     2.1
  State and local......................     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     2.1

Addenda:
  Final sales of domestic product......      .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     3.1
  Gross domestic purchases.............     -.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     3.2
  Final sales to domestic purchasers...     -.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     2.9
  Gross national product...............     -.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     3.3
  Real disposable personal income......      .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     2.6

  Price indexes:
    Gross domestic purchases...........     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     3.1
    Gross domestic purchases excluding
     food and energy...................     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     2.7
    GDP................................     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     2.9
    GDP excluding food and energy......     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     2.9
    Personal consumption expenditures..     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     2.7
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                          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 06   IV 06    I 07r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     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     3.1     1.9

Personal consumption expenditures
 (PCE).................................     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     3.6     3.5
  Durable goods........................     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     7.4     4.8
  Nondurable goods.....................     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     3.7     3.0
  Services.............................     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     2.9     3.4

Gross private domestic investment......     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    -2.1    -6.4
  Fixed investment.....................     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    -1.1    -4.0
    Nonresidential.....................      .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     6.1     3.4
      Structures.......................    -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    11.2    10.1
      Equipment and software...........     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     4.0      .7
    Residential........................     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   -12.8   -16.4
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................    -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     9.4     6.0
    Goods..............................    -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    10.2     5.9
    Services...........................    -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     7.5     6.2
  Imports..............................     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     3.3     2.4
    Goods..............................     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     2.9     2.1
    Services...........................    -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     5.1     4.0

Government consumption expenditures
 and gross investment..................     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     2.7     1.7
  Federal..............................     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     2.4     -.7
    National defense...................    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     4.3      .2
    Nondefense.........................     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    -1.4    -2.5
  State and local......................      .2      .3     -.4      .3     1.0      .3      .4      .5      .3      .5      .8     1.3     1.9     2.4     2.8     3.1

Addenda:
  Final sales of domestic product......     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     3.3     2.3
  Gross domestic purchases.............     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     2.5     1.6
  Final sales to domestic purchasers...     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     2.7     2.0
  Gross national product...............     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     3.4     2.1
  Real disposable personal income......     1.3     3.3     3.7     4.2     3.6     2.7     4.1     2.1     1.6      .8      .3     2.5     2.0     2.9     3.2     3.2

  Price indexes:
    Gross domestic purchases...........     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     2.3     2.5
    Gross domestic purchases excluding
     food and energy...................     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     2.6     2.6
    GDP................................     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     2.5     2.8
    GDP excluding food and energy......     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     2.7     2.7
    PCE................................     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     1.9     2.2
    PCE excluding food and energy......     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     2.2     2.3
    Market-based PCE\1\................     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     1.6     2.1
    Market-based PCE excluding food
     and energy\1\.....................     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     1.9     2.1
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2004       2005       2006       I 06      II 06     III 06      IV 06       I 07r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   11,712.5   12,455.8   13,246.6   13,008.4   13,197.3   13,322.6   13,458.2   13,620.2

Plus: Income receipts from the rest of the
 world.....................................      410.2      513.3      665.6      603.3      661.4      682.3      715.5      733.7
Less: Income payments to the rest of the
 world.....................................      363.9      481.5      635.7      574.3      638.6      665.7      664.4      679.8

Equals: Gross national product.............   11,758.7   12,487.7   13,276.5   13,037.4   13,220.1   13,339.2   13,509.3   13,674.0

Less: Consumption of fixed capital.........    1,436.2    1,604.8    1,576.9    1,548.0    1,572.8    1,582.0    1,604.6    1,618.4
Less: Statistical discrepancy..............       66.7       71.0      -11.4      -61.9       35.8       23.5      -43.0      -10.2

Equals: National income....................   10,255.9   10,811.8   11,711.0   11,551.3   11,611.5   11,733.7   11,947.6   12,065.8
  Compensation of employees................    6,650.3    7,030.3    7,498.4    7,400.3    7,425.5    7,489.3    7,678.7    7,750.6
    Wage and salary accruals...............    5,377.1    5,664.8    6,043.6    5,970.1    5,980.9    6,027.6    6,195.6    6,241.9
    Supplements to wages and salaries......    1,273.2    1,365.5    1,454.9    1,430.3    1,444.5    1,461.6    1,483.1    1,508.6
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      911.1      970.7    1,015.1    1,008.3    1,011.9    1,014.8    1,025.3    1,039.1
  Rental income of persons with capital
   consumption adjustment..................      127.0       72.8       77.4       76.8       71.4       78.3       83.1       85.3
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................    1,182.6    1,330.7    1,615.7    1,569.1    1,591.8    1,653.3    1,648.4    1,671.4
  Net interest and miscellaneous payments..      485.1      483.4      509.3      514.8      513.2      498.6      510.4      509.0
  Taxes on production and imports less
   subsidies...............................      819.4      865.1      912.5      897.4      914.0      916.8      921.9      931.5
  Business current transfer payments.......       85.5       74.2       92.6       93.8       93.1       92.8       90.8       92.4
  Current surplus of government
   enterprises.............................       -5.0      -15.4       -9.9       -9.2       -9.4      -10.2      -10.9      -13.4

Addendum:
  Gross domestic income....................   11,645.8   12,384.8   13,258.0   13,070.3   13,161.6   13,299.1   13,501.2   13,630.4
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2004       2005       2006       I 06      II 06     III 06      IV 06       I 07r
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    9,731.4   10,239.2   10,891.2   10,721.4   10,807.3   10,939.4   11,096.6   11,352.9

  Compensation of employees, received......    6,665.3    7,030.3    7,485.9    7,400.3    7,425.5    7,489.3    7,628.7    7,800.6
    Wage and salary disbursements..........    5,392.1    5,664.8    6,031.1    5,970.1    5,980.9    6,027.6    6,145.6    6,291.9
    Supplements to wages and salaries......    1,273.2    1,365.5    1,454.9    1,430.3    1,444.5    1,461.6    1,483.1    1,508.6
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      911.1      970.7    1,015.1    1,008.3    1,011.9    1,014.8    1,025.3    1,039.1
    Farm...................................       36.2       30.2       22.6       23.9       17.5       21.7       27.3       31.7
    Nonfarm................................      874.9      940.4      992.5      984.4      994.3      993.2      998.0    1,007.5
  Rental income of persons with capital
   consumption adjustment..................      127.0       72.8       77.4       76.8       71.4       78.3       83.1       85.3
  Personal income receipts on assets.......    1,427.9    1,519.4    1,656.3    1,602.3    1,647.7    1,683.6    1,691.6    1,734.4
    Personal interest income...............      890.8      945.0    1,016.7      989.1    1,019.2    1,035.8    1,022.8    1,045.0
    Personal dividend income...............      537.1      574.4      639.6      613.2      628.5      647.8      668.8      689.4
  Personal current transfer receipts.......    1,426.5    1,526.6    1,602.2    1,570.4    1,589.7    1,618.6    1,629.9    1,685.3

  Less: Contributions for government
   social insurance........................      826.4      880.6      945.7      936.7      938.8      945.2      961.9      991.8

Less: Personal current taxes...............    1,049.8    1,203.1    1,362.1    1,332.6    1,361.0    1,362.5    1,392.3    1,449.4

Equals: Disposable personal income.........    8,681.6    9,036.1    9,529.1    9,388.8    9,446.2    9,577.0    9,704.3    9,903.5

Less: Personal outlays.....................    8,507.2    9,070.9    9,625.5    9,418.5    9,577.0    9,710.0    9,796.5    9,970.2

Equals: Personal saving....................      174.3      -34.8      -96.4      -29.7     -130.8     -133.0      -92.2      -66.8

  Personal saving as a percentage of
   disposable personal income..............        2.0        -.4       -1.0        -.3       -1.4       -1.4        -.9        -.7

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    8,010.8    8,104.6    8,318.6    8,276.8    8,245.4    8,311.0    8,441.7    8,541.5
-----------------------------------------------------------------------------------------------------------------------------------
  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
                                                              ---------------------------------------                 ------------------------------- -------
                                         2004    2005    2006    I 06   II 06  III 06   IV 06    I 07r   2005    2006   II 06  III 06   IV 06    I 07r   I 07r
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
 valuation and capital consumption
 adjustments......................... 1,182.6 1,330.7 1,615.7 1,569.1 1,591.8 1,653.3 1,648.4 1,671.4    12.5    21.4     1.4     3.9     -.3     1.4     6.5

Less: Taxes on corporate income......   300.1   399.3   474.9   456.9   476.1   490.6   476.2   479.7    33.1    18.9     4.2     3.0    -2.9      .7     5.0

Equals: Profits after tax with
 inventory valuation and capital
 consumption adjustments.............   882.5   931.4 1,140.7 1,112.1 1,115.7 1,162.7 1,172.3 1,191.7     5.5    22.5      .3     4.2      .8     1.7     7.2
  Net dividends......................   539.5   576.9   642.2   615.7   631.1   650.4   671.4   692.0     6.9    11.3     2.5     3.1     3.2     3.1    12.4
  Undistributed profits with
   inventory valuation and capital
   consumption adjustments...........   343.0   354.5   498.6   496.4   484.6   512.4   500.9   499.7     3.4    40.6    -2.4     5.7    -2.2     -.2      .7

Cash flow:
  Net cash flow with inventory
   valuation and capital consumption
   adjustments....................... 1,139.2 1,211.3 1,364.9 1,349.2 1,350.3 1,380.5 1,379.4 1,382.9     6.3    12.7      .1     2.2     -.1      .3     2.5
    Undistributed profits with
     inventory valuation and capital
     consumption adjustments.........   343.0   354.5   498.6   496.4   484.6   512.4   500.9   499.7     3.4    40.6    -2.4     5.7    -2.2     -.2      .7
    Consumption of fixed capital.....   796.2   856.8   866.3   852.8   865.6   868.2   878.5   883.2     7.6     1.1     1.5      .3     1.2      .5     3.6

  Less: Inventory valuation
   adjustment........................   -39.8   -32.6   -34.4   -22.9   -58.9   -38.2   -17.5   -32.8   .....   .....   .....   .....   .....   .....   .....

  Equals: Net cash flow.............. 1,178.9 1,243.9 1,399.2 1,372.1 1,409.2 1,418.8 1,396.9 1,415.7     5.5    12.5     2.7      .7    -1.5     1.3     3.2

Addenda:
  Profits before tax (without
   inventory valuation and capital
   consumption adjustments).......... 1,144.3 1,518.7 1,810.9 1,740.6 1,811.5 1,854.0 1,837.6 1,861.6    32.7    19.2     4.1     2.3     -.9     1.3     7.0
  Profits after tax (without
   inventory valuation and capital
   consumption adjustments)..........   844.2 1,119.4 1,336.0 1,283.7 1,335.4 1,363.4 1,361.5 1,382.0    32.6    19.4     4.0     2.1     -.1     1.5     7.7
  Inventory valuation adjustment.....   -39.8   -32.6   -34.4   -22.9   -58.9   -38.2   -17.5   -32.8   .....   .....   .....   .....   .....   .....   .....
  Capital consumption adjustment.....    78.1  -155.5  -160.9  -148.6  -160.8  -162.4  -171.7  -157.4   .....   .....   .....   .....   .....   .....   .....
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                      ---------------------------------------  ----------------------------------------------
                                                 2004    2005    2006    I 06   II 06  III 06   IV 06    I 07r   2005    2006   II 06  III 06   IV 06    I 07r
-------------------------------------------------------------------------------------------------------------------------------------------------------------
    Corporate profits with inventory
     valuation and capital consumption
     adjustments............................. 1,182.6 1,330.7 1,615.7 1,569.1 1,591.8 1,653.3 1,648.4 1,671.4   148.1   285.0    22.7    61.5    -4.9    23.0

Domestic industries.......................... 1,006.3 1,133.7 1,372.6 1,343.0 1,351.9 1,418.7 1,376.6 1,379.3   127.4   238.9     8.9    66.8   -42.1     2.7
  Financial..................................   353.7   369.4   474.0   442.2   483.9   474.8   495.3   472.2    15.7   104.6    41.7    -9.1    20.5   -23.1
  Nonfinancial...............................   652.6   764.2   898.5   900.9   868.1   943.9   881.3   907.0   111.6   134.3   -32.8    75.8   -62.6    25.7

Rest of the world............................   176.3   197.0   243.1   226.1   239.9   234.6   271.9   292.1    20.7    46.1    13.8    -5.3    37.3    20.2
  Receipts from the rest of the world........   302.0   338.0   403.8   376.3   402.0   408.9   428.1   438.2    36.0    65.8    25.7     6.9    19.2    10.1
  Less: Payments to the rest of the world....   125.8   141.0   160.7   150.2   162.1   174.2   156.2   146.1    15.2    19.7    11.9    12.1   -18.0   -10.1

    Corporate profits with inventory
     valuation adjustment.................... 1,104.5 1,486.1 1,776.6 1,717.7 1,752.6 1,815.8 1,820.2 1,828.8   381.6   290.5    34.9    63.2     4.4     8.6

Domestic industries..........................   928.2 1,289.1 1,533.4 1,491.6 1,512.7 1,581.1 1,548.3 1,536.7   360.9   244.3    21.1    68.4   -32.8   -11.6
  Financial..................................   344.2   389.0   498.7   463.9   508.2   500.1   522.7   498.9    44.8   109.7    44.3    -8.1    22.6   -23.8
    Federal Reserve banks....................    20.0    26.6    33.8    30.9    33.7    35.8    34.7    38.5     6.6     7.2     2.8     2.1    -1.1     3.8
    Other financial..........................   324.1   362.5   464.9   433.0   474.4   464.3   488.0   460.4    38.4   102.4    41.4   -10.1    23.7   -27.6

  Nonfinancial...............................   584.0   900.1 1,034.7 1,027.7 1,004.5 1,081.0 1,025.6 1,037.7   316.1   134.6   -23.2    76.5   -55.4    12.1
    Utilities................................    16.2    30.3    48.6    39.7    46.8    52.8    54.9    52.5    14.1    18.3     7.1     6.0     2.1    -2.4
    Manufacturing............................   150.2   254.8   311.7   300.7   289.9   331.9   324.5   346.1   104.6    56.9   -10.8    42.0    -7.4    21.6
      Durable goods..........................    31.3    73.8   108.0   102.2    78.7   115.9   135.2   141.1    42.5    34.2   -23.5    37.2    19.3     5.9
        Fabricated metal products............    12.3    20.6    26.2    25.7    24.1    24.8    30.1    30.9     8.3     5.6    -1.6      .7     5.3      .8
        Machinery............................     7.0    13.8    19.2    19.1    18.3    18.5    21.1    24.6     6.8     5.4     -.8      .2     2.6     3.5
        Computer and electronic products.....    -6.7     3.9    13.4    12.3    13.1    13.2    15.1    18.3    10.6     9.5      .8      .1     1.9     3.2
        Electrical equipment, appliances,
         and components......................      .2     5.7    10.0     8.4     6.8    10.3    14.6    16.6     5.5     4.3    -1.6     3.5     4.3     2.0
        Motor vehicles, bodies and trailers,
         and parts...........................   -11.2   -17.9   -17.9   -18.2   -25.4   -16.6   -11.3    -8.8    -6.7      .0    -7.2     8.8     5.3     2.5
        Other durable goods..................    29.7    47.7    57.0    54.9    41.9    65.7    65.6    59.5    18.0     9.3   -13.0    23.8     -.1    -6.1

      Nondurable goods.......................   118.9   181.0   203.7   198.5   211.2   216.0   189.3   205.0    62.1    22.7    12.7     4.8   -26.7    15.7
        Food and beverage and tobacco
         products............................    22.4    28.5    31.9    29.6    29.5    34.4    33.9    32.0     6.1     3.4     -.1     4.9     -.5    -1.9
        Petroleum and coal products..........    49.3    70.4    84.3    74.5    92.4   101.1    69.4    76.9    21.1    13.9    17.9     8.7   -31.7     7.5
        Chemical products....................    23.8    45.3    49.1    54.1    53.6    46.6    41.9    54.7    21.5     3.8     -.5    -7.0    -4.7    12.8
        Other nondurable goods...............    23.4    36.8    38.5    40.1    35.7    33.9    44.2    41.4    13.4     1.7    -4.4    -1.8    10.3    -2.8

    Wholesale trade..........................    69.9    97.6   106.0   107.2    98.3   125.1    93.7   103.3    27.7     8.4    -8.9    26.8   -31.4     9.6
    Retail trade.............................    89.3   113.7   130.1   123.0   121.2   131.3   145.0   138.7    24.4    16.4    -1.8    10.1    13.7    -6.3
    Transportation and warehousing...........    11.8    21.0    34.7    27.3    38.6    39.6    33.3    31.5     9.2    13.7    11.3     1.0    -6.3    -1.8
    Information..............................    37.7    77.5    87.7    89.8    85.9    83.3    91.9   106.6    39.8    10.2    -3.9    -2.6     8.6    14.7
    Other nonfinancial.......................   208.8   305.2   315.8   340.1   323.9   317.1   282.2   258.9    96.4    10.6   -16.2    -6.8   -34.9   -23.3

Rest of the world............................   176.3   197.0   243.1   226.1   239.9   234.6   271.9   292.1    20.7    46.1    13.8    -5.3    37.3    20.2
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2004       2005       2006       I 06      II 06     III 06      IV 06       I 07r
-----------------------------------------------------------------------------------------------------------------------------------
                                                                             Billions of dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business....................    5,932.9    6,369.7    6,858.6    6,788.2    6,790.0    6,898.9    6,957.1    7,047.3

Consumption of fixed capital...............      686.2      739.7      744.8      733.7      744.4      746.3      754.9      758.6

Net value added............................    5,246.7    5,630.1    6,113.7    6,054.5    6,045.7    6,152.6    6,202.2    6,288.7

  Compensation of employees................    3,873.4    4,099.7    4,390.5    4,341.0    4,350.6    4,382.5    4,487.7    4,541.6
    Wage and salary accruals...............    3,158.4    3,335.1    3,573.5    3,537.5    3,539.7    3,562.5    3,654.4    3,695.0
    Supplements to wages and salaries......      714.9      764.6      816.9      803.5      811.0      820.0      833.3      846.6
  Taxes on production and imports less
   subsidies...............................      522.9      558.1      584.4      576.7      585.3      586.5      589.3      594.8
  Net operating surplus....................      850.4      972.2    1,138.8    1,136.8    1,109.7    1,183.7    1,125.2    1,152.3
    Net interest and miscellaneous
     payments..............................      137.8      156.6      178.3      175.1      180.0      177.2      180.7      181.2
    Business current transfer payments.....       60.0       51.4       62.1       60.9       61.7       62.5       63.2       64.0
    Corporate profits with inventory
     valuation and capital consumption
     adjustments...........................      652.6      764.2      898.5      900.9      868.1      943.9      881.3      907.0
      Taxes on corporate income............      185.3      251.4      285.4      280.9      283.3      299.6      277.8      287.9
      Profits after tax with inventory
       valuation and capital consumption
       adjustments.........................      467.4      512.9      613.1      620.0      584.8      644.3      603.4      619.1
        Net dividends......................      366.9      228.5      411.3      377.7      392.8      407.5      467.3      419.0
        Undistributed profits with
         inventory valuation and capital
         consumption adjustments...........      100.5      284.4      201.8      242.3      192.0      236.8      136.1      200.1

Addenda:
  Profits before tax (without inventory
   valuation and capital consumption
   adjustments)............................      623.8      932.6    1,069.1    1,050.6    1,063.5    1,119.2    1,043.0    1,070.6
  Profits after tax (without inventory
   valuation and capital consumption
   adjustments)............................      438.6      681.3      783.7      769.7      780.2      819.6      765.2      782.7
  Inventory valuation adjustment...........      -39.8      -32.6      -34.4      -22.9      -58.9      -38.2      -17.5      -32.8
  Capital consumption adjustment...........       68.6     -135.8     -136.2     -126.8     -136.5     -137.1     -144.3     -130.7
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business\1\.................    5,630.0    5,852.9    6,133.8    6,111.2    6,069.0    6,158.9    6,196.2    6,218.4

Consumption of fixed capital\2\............      650.9      681.6      670.5      666.1      669.2      672.0      674.6      676.8
Net value added\3\.........................    4,979.2    5,171.2    5,463.3    5,445.0    5,399.8    5,486.9    5,521.6    5,541.6
                                           ----------------------------------------------------------------------------------------
                                                                    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\...      1.054      1.088      1.118      1.111      1.119      1.120      1.123      1.133

  Compensation of employees (unit labor
   cost)...................................       .688       .700       .716       .710       .717       .712       .724       .730

  Unit nonlabor cost.......................       .250       .257       .255       .253       .260       .255       .256       .257
    Consumption of fixed capital...........       .122       .126       .121       .120       .123       .121       .122       .122
    Taxes on production and imports less
     subsidies plus business current
     transfer payments.....................       .104       .104       .105       .104       .107       .105       .105       .106
    Net interest and miscellaneous payments       .024       .027       .029       .029       .030       .029       .029       .029

  Corporate profits with inventory valuation
   and capital consumption adjustments (unit
   profits from current production)........       .116       .131       .146       .147       .143       .153       .142       .146
    Taxes on corporate income..............       .033       .043       .047       .046       .047       .049       .045       .046
    Profits after tax with inventory
     valuation and capital consumption
     adjustments...........................       .083       .088       .100       .101       .096       .105       .097       .100
-----------------------------------------------------------------------------------------------------------------------------------
  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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2004   2005   2006  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 06  IV 06   I 07r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................    3.9    3.2    3.3    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    2.5     .7

  Goods.............................    4.9    4.6    6.2    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    4.0   -1.0
  Services..........................    3.2    2.3    2.3    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    4.1    2.8
  Structures........................    5.2    4.6     .5    9.2   14.1    2.2     .5   13.6     .6   -2.7    8.0   11.1     .7    3.1    2.9     .3   -7.4   -9.9   -5.7

  Motor vehicle output..............    3.5    5.9   -1.7   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  -32.0    7.7
  GDP excuding motor vehicle
   output...........................    3.9    3.1    3.5    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    3.8     .5

  Final sales of computers\1\.......    8.2   24.5   16.8   -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   40.9    3.2
  GDP excluding final sales of
   computers........................    3.9    3.1    3.2    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    2.2     .7

  Farm gross value added\2\.........    7.4    1.0    4.8   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    -.9  -14.6

  Nonfarm business gross value
   added\3\.........................    4.3    3.8    3.8    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    2.9     .6

Price indexes:
  GDP...............................    2.8    3.0    2.9    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    1.7    4.2
  GDP excluding food and energy.....    2.7    3.0    2.9    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    2.3    3.2
  GDP excluding final sales of
   computers........................    2.9    3.2    3.1    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    1.8    4.3

  Gross domestic purchases..........    3.1    3.5    3.1     .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     .2    3.7
  Gross domestic purchases excluding
   food and energy..................    2.7    2.8    2.7    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    2.4    2.9
  Gross domestic purchases excluding
   final sales of computers to
   domestic purchasers..............    3.2    3.7    3.3     .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     .3    3.8

  Personal consumption expenditures
   (PCE)............................    2.6    2.9    2.7     .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   -1.0    3.5
  Personal consumption expenditures
   excluding food and energy........    2.0    2.1    2.2    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    1.8    2.4
  Market-based PCE\4\...............    2.3    2.7    2.6     .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   -1.6    3.6
  Market-based PCE excluding food
   and energy\4\....................    1.5    1.7    1.9    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    1.6    2.4
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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.