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News Release: Gross Domestic Product and Corporate Profits

The tables from this news release are available in XLS format and the entire release is available in PDF format.
Also available: a brief summary of highlights.

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, AUGUST 27, 2004


Virginia H. Mannering:  (202) 606-5304   (GDP)                               BEA 04-39
Kenneth A. Petrick:     (202) 606-9738   (Profits)
Recorded message:       (202) 606-5306

         

               GROSS DOMESTIC PRODUCT:  SECOND QUARTER 2004 (PRELIMINARY)
               CORPORATE PROFITS:  SECOND QUARTER 2004 (PRELIMINARY)


    Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 2.8 percent in the second quarter of 2004,
according to preliminary estimates released by the Bureau of Economic Analysis.  In the first quarter,
real GDP increased 4.5 percent. 

    The GDP estimates released today are based on more complete source data than were available for
the advance estimates issued last month.  In the advance estimates, the increase in real GDP was 3.0
percent (see "Revisions" on page 3).

    The major contributors to the increase in real GDP in the second quarter were personal
consumption expenditures (PCE), equipment and software, residential fixed investment, private
inventory investment, and government spending.  Imports, which are a subtraction in the calculation of
GDP, increased.
    
    The deceleration in real GDP growth in the second quarter primarily reflected decelerations in
PCE and in private inventory investment and an acceleration in imports that were partly offset by
accelerations in residential fixed investment and in equipment and software and an upturn in
nonresidential structures.

    Motor vehicle output subtracted 0.76 percentage point from the second-quarter change in real
GDP after contributing 0.30 percentage point to the first-quarter change.  

    The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 3.5 percent in the second quarter, the same as the advance estimate; this index increased 3.4
percent in the first quarter.  Excluding food and energy prices, the price index for gross domestic
purchases increased 2.5 percent in the second quarter, the same increase as in the first.   


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.  Price indexes are chain-type measures.

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


    Real personal consumption expenditures increased 1.6 percent in the second quarter, compared
with an increase of 4.1 percent in the first.  Real nonresidential fixed investment increased 12.1 percent,
compared with an increase of 4.2 percent.  Nonresidential structures increased 7.1 percent, in contrast to
a decrease of 7.6 percent.  Equipment and software increased 13.6 percent, compared with an increase of
8.0 percent.  Real residential fixed investment increased 14.7 percent, compared with an increase of 5.0
percent.

    Real exports of goods and services increased 6.1 percent in the second quarter, compared with an
increase of 7.3 percent in the first.  Real imports of goods and services increased 14.1 percent, compared
with an increase of 10.6 percent.

    Real federal government consumption expenditures and gross investment increased 2.7 percent in
the second quarter, compared with an increase of 7.1 percent in the first.  National defense increased 1.9
percent, compared with an increase of 10.6 percent.  Nondefense increased 4.5 percent, compared with
an increase of 0.2 percent.  Real state and local government consumption expenditures and gross
investment increased 2.2 percent, compared with no change in the first.

    The real change in private inventories added 0.66 percentage point to the second-quarter change in
real GDP, after adding 1.17 percentage points to the first-quarter change.  Private businesses increased
inventories $57.7 billion in the second quarter, following increases of $40.0 billion in the first and $8.6
billion in the fourth quarter of 2003.

    Real final sales of domestic product -- GDP less change in private inventories -- increased 2.1
percent in the second quarter, compared with an increase of 3.3 percent in the first.


Gross domestic purchases

    Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 4.0 percent in the second quarter, compared with an increase of 5.0 percent in the
first. 


Gross national product

    Real gross national product -- the goods and services produced by the labor and property supplied
by U.S. residents -- increased 1.4 percent in the second quarter, compared with an increase of 3.9 percent
in the first.  GNP includes, and GDP excludes, net receipts of income from the rest of the world, which
decreased $37.6 billion in the second quarter after decreasing $13.4 billion in the first; in the second
quarter, receipts increased $3.0 billion, and payments increased $40.6 billion.


Current-dollar GDP

    Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
6.1 percent, or $170.5 billion, in the second quarter to a level of $11,643.1 billion.  In the first quarter,
current-dollar GDP increased 7.4 percent, or $201.7 billion.


Revisions

    The preliminary estimate of the second-quarter increase in real GDP is 0.2 percentage point, or
$6.6 billion, lower than the advance estimate issued last month.  The downward revision to the percent
change in real GDP primarily reflected a downward revision to exports and an upward revision to
imports that were partly offset by upward revisions to PCE, to private inventory investment, and to
equipment and software. 


                                              Advance          Preliminary
                                        (Percent change from preceding quarter)

Real GDP...............................         3.0                2.8
Current-dollar GDP.....................         6.3                6.1
Gross domestic purchases price index...         3.5                3.5




                           Corporate Profits

    Profits from current production (corporate profits with inventory valuation and capital
consumption adjustments) increased $1.6 billion in the second quarter.  In the first quarter, profits
increased $36.5 billion.  Current-production cash flow (net cash flow with inventory valuation and
capital consumption adjustments) -- the internal funds available to corporations for investment --
decreased $11.4 billion in the second quarter, in contrast to an increase of $5.9 billion in the first.

     Taxes on corporate income increased $12.9 billion in the second quarter, compared with an
increase of $4.2 billion in the first.  Profits after tax with inventory valuation and capital consumption
adjustments decreased $11.3 billion in the second quarter, after increasing $32.3 billion in the first. 
Dividends increased $10.0 billion, compared with an increase of $7.0 billion; current-production
undistributed profits decreased $21.3 billion, in contrast to an increase of $25.3 billion.
    
    Domestic profits increased $25.1 billion in the second quarter, compared with an increase of $47.0
billion in the first.  Domestic profits of financial corporations decreased $3.6 billion in the second
quarter, in contrast to an increase of $19.8 billion in the first.  Domestic profits of nonfinancial
corporations increased $28.7 billion in the second quarter, compared with an increase of $27.3 billion in
the first.  In the second quarter, both real gross value added and profits per unit of real gross value added
increased.  The second quarter increase in unit profits reflected a larger increase in the prices
corporations received than in the unit costs they incurred; unit labor costs increased while unit nonlabor
costs were unchanged.                  
    
    The foreign component of profits (rest-of-the-world profits) decreased $23.5 billion in the second
quarter, compared with a decrease of $10.5 billion in the first.  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 second-quarter
decrease was accounted for by a large increase in payments and a small decrease in receipts.

    Profits before tax with inventory valuation adjustment is the best available measure of industry
profits because estimates of the capital consumption adjustment by industry do not exist.  This measure
reflects the depreciation-accounting practices used for federal income tax returns.  According to this
measure, domestic profits of financial corporations decreased, and domestic profits of nonfinancial
corporations increased.  Increases in profits of nonfinancial corporations were widespread among major
industry groups with the largest occurring in information and in durable goods manufacturing; only
utilities and retail trade decreased.

    Profits before tax increased $18.0 billion in the second quarter, in contrast to a decrease of $3.8
billion in the first.  The before-tax measure of profits does not reflect, as does profits from current
production, the capital consumption and inventory valuation adjustments.  These adjustments convert
depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to
the current-cost measures used in the national income and product accounts.  The capital consumption
adjustment decreased $6.2 billion in the second quarter (from $240.2 billion to $234.0 billion), in
contrast to an increase of $53.0 billion in the first.  The inventory valuation adjustment decreased $10.2
billion (from -$37.0 billion to -$47.2 billion), compared with a decrease of $12.7 billion.
                                   

                       *          *          *


    BEA's major national, international, regional, and industry estimates; the Survey of Current
Business; and BEA news releases are available without charge on BEA's Web site:

                             <www.bea.gov>


    Summary BEA estimates are available on recorded messages at the time of public release at the
following telephone numbers:

               (202)  606-5306     Gross domestic product
               (202)  606-5303     Personal income and outlays
               (202)  606-5362     U.S. international transactions


    Most of BEA's estimates and analyses are published in the Survey of Current Business, BEA's
monthly journal.  Subscriptions and single copies of the printed Survey are for sale by the
Superintendent of Documents, U.S. Government Printing Office.  Internet:  <bookstore.gpo.gov>;
phone: 202-512-1800; fax: 202-512-2250; mail: Stop SSOP, Washington, DC 20402-0001.
                                   

                       *          *          *
                                  
                                  
          Next release -- September 29, 2004, at 8:30 A.M. EDT for:
          Gross Domestic Product:  Second Quarter 2004 (Final)
          Corporate Profits:  Second Quarter 2004 (Revised)

                                   
                                    Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003 III 00  IV 00   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04r II 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).     .8    1.9    3.0    -.5    2.1    -.5    1.2   -1.4    1.6    3.4    2.4    2.6     .7    1.9    4.1    7.4    4.2    4.5    2.8

Personal consumption expenditures...    2.5    3.1    3.3    3.9    3.4    1.7    1.0    1.8    7.0    1.8    2.8    2.9    2.5    2.7    3.9    5.0    3.6    4.1    1.6
  Durable goods.....................    4.3    6.5    7.4    6.0     .7    6.7    -.3    3.1   37.4   -8.5    4.4   14.0   -2.4    -.1   20.6   16.5    3.9    2.2     .0
  Nondurable goods..................    2.0    2.6    3.7    2.3    3.7     .5    -.1    2.4    4.9    3.8     .8    -.6    5.3    5.0    1.6    6.9    5.1    6.7     .4
  Services..........................    2.4    2.6    2.2    4.3    3.9    1.1    1.8    1.2    2.3    3.3    3.5    2.4    2.2    2.1    1.8    1.9    2.8    3.3    2.5

Gross private domestic investment...   -7.9   -2.4    4.4   -9.9   -2.3  -13.6   -7.6  -10.5  -22.7   16.8     .3    4.1    -.5    -.8    3.5   22.4   13.9   12.3   17.3
  Fixed investment..................   -3.0   -4.9    5.1    -.6     .7   -2.6   -8.7   -4.5  -10.6   -4.3   -3.5     .2    -.8    2.4   10.9   18.0   10.5    4.5   13.0
    Nonresidential..................   -4.2   -8.9    3.3    2.2     .9   -4.2  -13.6   -6.8  -13.3   -9.7   -9.6   -1.1   -3.2    -.1   11.8   15.7   11.0    4.2   12.1
      Structures....................   -2.3  -17.8   -5.6    9.6    1.2   -8.3   -4.0    6.0  -33.2  -18.5  -22.6  -16.0   -6.6  -13.0   14.5   -1.3    7.9   -7.6    7.1
      Equipment and software........   -4.9   -5.5    6.4    -.2     .8   -2.8  -16.9  -11.4   -4.2   -6.3   -4.5    4.6   -2.0    4.5   11.0   21.7   12.0    8.0   13.6
    Residential.....................     .4    4.8    8.8   -8.0     .4    2.2    5.6    1.8   -3.7    9.3   11.3    2.8    4.2    7.5    9.1   22.4    9.6    5.0   14.7
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................   -5.4   -2.3    1.9   10.7   -2.7   -5.3  -12.7  -18.2  -10.8    4.7   11.0    3.1   -4.2   -1.5   -1.6   11.3   17.5    7.3    6.1
    Goods...........................   -6.1   -4.1    2.2   18.3   -5.4   -5.4  -17.1  -20.0   -8.8   -1.9   14.0    2.9  -10.2    4.0    -.8   10.1   16.1    9.1    5.0
    Services........................   -3.7    1.8    1.4   -6.6    4.4   -5.0    -.7  -13.7  -15.3   21.7    4.5    3.5   10.5  -12.7   -3.4   14.1   20.6    3.4    8.7
  Imports...........................   -2.7    3.4    4.4   14.1   -1.6   -3.7  -12.6  -10.3   -3.4   12.5   11.4    5.4    9.6   -2.0    2.5    2.8   17.1   10.6   14.1
    Goods...........................   -3.2    3.7    4.7   14.1   -1.6   -3.4  -16.9   -8.6   -2.0   10.1   15.3    5.9    8.2   -1.8    5.1     .0   18.4   12.7   13.6
    Services........................    -.3    1.9    3.1   14.1   -1.9   -5.0   12.8  -18.3  -10.4   24.7   -5.8    2.8   16.6   -2.6   -9.4   17.9   11.1    1.2   16.4

Government consumption expenditures
 and gross investment...............    3.4    4.4    2.8   -2.1    1.3    5.3    7.9   -1.5    8.5    4.7    4.4    2.1    4.0     .2    7.2     .1    1.6    2.5    2.4
  Federal...........................    3.9    7.5    6.6   -8.2   -1.0    8.1    9.1     .0    8.8    8.2   12.8    2.9    9.1     .3   22.1   -3.3    4.8    7.1    2.7
    National defense................    3.9    7.7    9.0   -7.4    1.7    7.0    4.3    2.4   12.5    5.8   11.5    3.4   13.5   -2.7   38.4   -7.7   11.6   10.6    1.9
    Nondefense......................    3.9    7.1    2.4   -9.7   -5.7   10.1   18.0   -3.9    2.3   12.6   15.0    1.9    1.6    6.2   -3.9    5.8   -7.5     .2    4.5
  State and local...................    3.2    2.8     .7    1.3    2.5    4.0    7.2   -2.3    8.4    2.9     .3    1.7    1.4     .1    -.4    2.2    -.1     .0    2.2

Addenda:
  Final sales of domestic product...    1.6    1.4    3.1    1.3    2.6    1.6    1.0    -.4    3.8     .3    1.8    2.0     .7    2.4    5.2    6.8    3.7    3.3    2.1
  Gross domestic purchases..........     .9    2.5    3.3     .4    2.1    -.4     .7    -.8    2.2    4.4    2.8    2.9    2.4    1.7    4.4    6.4    4.7    5.0    4.0
  Final sales to domestic
   purchasers.......................    1.8    2.1    3.4    2.1    2.6    1.5     .5     .2    4.3    1.4    2.2    2.4    2.3    2.2    5.4    5.9    4.2    3.9    3.4
  Gross national product (GNP)......     .8    1.7    3.3    -.7    3.0   -1.1    1.5   -2.5    3.9    1.4    2.1    3.0    1.4    1.7    4.4    7.6    5.5    3.9    1.4
  Disposable personal income........    1.9    3.1    2.3    5.2     .6    1.3   -1.7   11.5   -5.6   10.8    2.7   -1.7     .2    1.8    4.3    8.2    1.4    2.4    2.5

  Current-dollar measures:
    GDP.............................    3.2    3.5    4.9    1.6    3.8    2.8    4.4     .2    3.6    4.5    4.2    3.9    2.7    4.9    5.3    8.8    5.7    7.4    6.1
    Final sales of domestic product.    4.1    3.1    5.1    3.2    4.5    4.9    4.2    1.2    5.5    1.7    3.3    3.7    2.7    5.3    6.3    8.4    5.4    6.1    5.4
    Gross domestic purchases........    2.9    4.0    5.4    2.9    3.7    2.2    3.0     .2    3.1    5.3    5.6    4.4    4.3    5.7    4.8    8.1    5.9    8.6    7.6
    Final sales to domestic
     purchasers.....................    3.8    3.6    5.5    4.5    4.4    4.3    2.8    1.2    4.9    2.6    4.7    4.2    4.3    6.0    5.8    7.7    5.7    7.4    7.0
    GNP.............................    3.2    3.4    5.2    1.4    4.7    2.1    4.6    -.8    6.0    2.4    3.9    4.3    3.4    4.6    5.6    9.0    7.0    6.8    4.6
    Disposable personal income......    4.1    4.6    4.2    7.2    2.4    4.6     .8   12.1   -5.0   11.8    5.7     .2    1.5    5.1    5.0    9.9    2.6    5.8    5.7
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the first
quarter of 2004.
  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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003 III 00  IV 00   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

    Gross domestic product..........     .8    1.9    3.0    -.5    2.1    -.5    1.2   -1.4    1.6    3.4    2.4    2.6     .7    1.9    4.1    7.4    4.2    4.5    2.8

Percentage points at annual rates:

  Personal consumption expenditures.   1.74   2.14   2.29   2.62   2.29   1.07    .67   1.20   4.71   1.32   1.98   2.02   1.74   1.84   2.72   3.58   2.50   2.90   1.11

    Durable goods...................    .37    .56    .63    .50    .06    .55   -.03    .26   2.81   -.79    .37   1.16   -.21   -.01   1.64   1.38    .33    .19    .00
      Motor vehicles and parts......    .20    .22    .22    .28    .01    .36   -.17    .16   2.24  -1.34    .13   1.09   -.50   -.22    .86    .53   -.07   -.23   -.20
      Furniture and household
       equipment....................    .19    .26    .27    .19    .07    .23    .16    .15    .39    .41    .20    .04    .20    .07    .51    .62    .28    .32    .21
      Other.........................   -.01    .08    .15    .03   -.02   -.03   -.03   -.06    .18    .14    .04    .03    .08    .14    .27    .23    .12    .10   -.01

    Nondurable goods................    .40    .51    .73    .44    .72    .09   -.03    .47    .95    .76    .15   -.12   1.03    .97    .31   1.38   1.01   1.33    .09
      Food..........................    .15    .18    .37    .09    .14    .24    .05    .09    .18    .26    .29   -.02    .31    .62    .26    .57    .25    .77    .25
      Clothing and shoes............    .06    .12    .12    .19    .04   -.06    .05    .04    .27    .25   -.01   -.12    .30   -.02    .23    .27    .11    .43   -.14
      Gasoline, fuel oil, and other
       energy goods.................    .02    .02    .01   -.05    .25    .05   -.33    .11    .24    .00   -.14   -.01    .21    .01   -.29    .10    .33   -.04   -.29
      Other.........................    .17    .17    .23    .21    .29   -.14    .21    .23    .27    .24    .01    .03    .21    .37    .12    .43    .32    .17    .27

    Services........................    .97   1.08    .93   1.67   1.51    .43    .73    .47    .95   1.36   1.46    .98    .93    .87    .77    .83   1.15   1.39   1.02
      Housing.......................    .28    .29    .15    .27    .28    .31    .28    .21    .26    .42    .33    .19    .13    .12    .11    .16    .09    .23    .21
      Household operation...........    .01    .03    .06    .16    .41   -.25   -.35    .03   -.15    .09    .24    .01    .16    .01   -.11    .08    .29    .13   -.17
        Electricity and gas.........   -.03    .04    .03    .07    .40   -.24   -.44    .00   -.07    .11    .19    .04    .19   -.04   -.19    .01    .25    .05   -.26
        Other household operation...    .03   -.01    .04    .08    .01   -.02    .09    .02   -.08   -.02    .05   -.03   -.03    .05    .08    .07    .04    .07    .09
      Transportation................   -.03   -.08   -.02   -.01    .01    .05   -.06   -.22   -.17    .01   -.04   -.10   -.01    .05   -.07   -.02   -.01    .05    .07
      Medical care..................    .50    .66    .46    .41    .42    .45    .49    .70    .67    .74    .63    .59    .55    .39    .40    .40    .36    .38    .57
      Recreation....................    .07    .07    .09    .10    .04    .15   -.03    .02    .07    .13    .05    .04    .11    .08    .13    .07    .11    .17    .01
      Other.........................    .15    .11    .20    .75    .34   -.28    .39   -.25    .28   -.03    .24    .25   -.02    .23    .31    .15    .31    .43    .32

  Gross private domestic investment.  -1.39   -.37    .66  -1.84   -.36  -2.44  -1.28  -1.76  -3.95   2.34    .05    .61   -.06   -.10    .54   3.16   2.04   1.86   2.60

    Fixed investment................   -.50   -.80    .76   -.10    .13   -.43  -1.51   -.75  -1.81   -.71   -.55    .02   -.13    .35   1.55   2.59   1.57    .69   1.95
      Nonresidential................   -.52  -1.02    .33    .28    .11   -.52  -1.76   -.83  -1.63  -1.13  -1.06   -.12   -.33   -.01   1.10   1.50   1.07    .42   1.18
        Structures..................   -.07   -.57   -.15    .29    .04   -.29   -.14    .19  -1.27   -.59   -.70   -.45   -.17   -.33    .32   -.03    .18   -.19    .16
        Equipment and software......   -.44   -.45    .48   -.02    .07   -.24  -1.62  -1.02   -.35   -.53   -.36    .33   -.16    .32    .78   1.53    .89    .61   1.01
          Information processing
           equipment and software...   -.08   -.18    .45    .33    .58   -.08   -.93   -.53   -.21   -.29    .04    .38   -.15    .59    .51   1.04    .61    .62    .53
            Computers and peripheral
             equipment..............    .02    .09    .24    .12    .06    .16   -.22   -.26    .19    .18    .03    .25    .08    .25    .30    .39    .25    .06    .22
            Software................   -.02   -.10    .07    .02    .20    .01   -.30   -.07   -.19   -.14   -.03    .11   -.16    .12    .07    .28    .14    .24    .12
            Other...................   -.08   -.16    .14    .19    .32   -.25   -.42   -.20   -.21   -.33    .04    .02   -.08    .23    .14    .36    .22    .33    .18
          Industrial equipment......   -.14   -.08    .00    .09   -.12    .01   -.48   -.27   -.21    .24   -.21    .02   -.05    .09   -.02    .04   -.06    .08    .03
          Transportation equipment..   -.18   -.17   -.04   -.31   -.36   -.22   -.03   -.27    .26   -.39   -.38   -.09    .00   -.31    .25    .14    .14   -.20    .26
          Other equipment...........   -.04   -.02    .06   -.13   -.03    .05   -.19    .05   -.19   -.10    .18    .02    .04   -.06    .03    .31    .20    .10    .19
      Residential...................    .02    .22    .43   -.38    .02    .10    .25    .08   -.18    .42    .51    .13    .20    .36    .44   1.09    .50    .27    .77

    Change in private inventories...   -.88    .42   -.10  -1.74   -.49  -2.01    .23  -1.02  -2.14   3.05    .60    .59    .07   -.45  -1.01    .57    .47   1.17    .66
      Farm..........................    .02   -.01    .02   -.36    .34    .00   -.28    .09   -.23    .37   -.47    .24    .02    .06   -.07    .06    .19    .06   -.10
      Nonfarm.......................   -.90    .44   -.12  -1.38   -.83  -2.01    .51  -1.11  -1.91   2.69   1.07    .36    .05   -.51   -.94    .52    .29   1.10    .75

  Net exports of goods and services.   -.20   -.70   -.43   -.87   -.07   -.04    .49   -.56   -.66  -1.10   -.46   -.43  -1.69    .14   -.50    .64   -.66   -.76  -1.37

    Exports.........................   -.60   -.24    .18   1.14   -.31   -.59  -1.45  -2.04  -1.11    .43    .99    .29   -.42   -.15   -.15   1.02   1.55    .70    .60
      Goods.........................   -.48   -.29    .14   1.36   -.45   -.43  -1.43  -1.60   -.63   -.13    .87    .19   -.72    .25   -.06    .64   1.00    .60    .34
      Services......................   -.12    .05    .04   -.22    .14   -.16   -.02   -.44   -.48    .56    .13    .10    .30   -.40   -.10    .39    .56    .10    .25

    Imports.........................    .40   -.46   -.61  -2.01    .24    .56   1.94   1.48    .45  -1.53  -1.45   -.72  -1.27    .29   -.34   -.39  -2.22  -1.46  -1.96
      Goods.........................    .39   -.42   -.54  -1.70    .19    .43   2.23   1.02    .21  -1.04  -1.59   -.65   -.91    .22   -.58    .00  -1.96  -1.43  -1.58
      Services......................    .01   -.04   -.07   -.32    .04    .12   -.28    .47    .25   -.49    .14   -.06   -.36    .06    .24   -.39   -.26   -.03   -.38

  Government consumption expenditures
   and gross investment.............    .60    .79    .52   -.37    .22    .92   1.35   -.28   1.48    .85    .81    .40    .75    .05   1.35    .03    .31    .48    .45

    Federal.........................    .23    .46    .43   -.51   -.07    .46    .52    .00    .51    .49    .78    .19    .58    .04   1.40   -.23    .33    .48    .19
      National defense..............    .15    .30    .38   -.29    .06    .25    .16    .09    .46    .23    .45    .14    .54   -.11   1.49   -.36    .50    .47    .09
        Consumption expenditures....    .13    .25    .33   -.30    .11    .26    .06    .03    .45    .22    .29    .04    .63   -.16   1.39   -.40    .42    .29    .16
        Gross investment............    .02    .06    .05    .01   -.05   -.01    .10    .06    .02    .00    .16    .11   -.09    .05    .10    .03    .09    .19   -.07
      Nondefense....................    .08    .16    .06   -.22   -.13    .20    .36   -.09    .05    .27    .33    .05    .04    .15   -.09    .13   -.18    .00    .10
       Consumption expenditures.....    .08    .14    .05   -.13   -.06    .15    .26    .01    .04    .19    .23    .12    .07    .14   -.23    .23   -.18   -.01   -.02
       Gross investment.............    .00    .02    .01   -.09   -.07    .05    .10   -.10    .01    .07    .10   -.07   -.03    .00    .13   -.10    .01    .01    .12

    State and local.................    .37    .33    .09    .15    .29    .46    .83   -.28    .97    .36    .03    .21    .17    .02   -.05    .26   -.02    .00    .26
        Consumption expenditures....    .24    .21    .07    .10    .21    .24    .24    .39    .38    .10    .16    .11    .14    .02    .04    .01    .08    .02    .00
        Gross investment............    .13    .12    .02    .05    .08    .22    .59   -.67    .59    .26   -.13    .09    .02    .00   -.09    .25   -.10   -.02    .26

Addenda:
    Goods...........................   -.59    .41   1.41  -1.19    .10  -1.57   -.41  -1.89    .88   1.38    .31   1.54  -1.05   1.39   1.32   5.45   1.90   2.65    .61
    Services........................   1.30   1.69   1.35    .80   1.95   1.04    .98    .93   1.58   1.94   2.39   1.29   1.71    .54   2.11    .67   1.77   1.76   1.03
    Structures......................    .04   -.24    .29   -.07    .03    .03    .66   -.44   -.87    .09   -.32   -.23    .08    .00    .67   1.29    .52    .07   1.15
    Motor vehicle output............   -.17    .39    .19   -.73   -.47   -.69   1.03   -.20    .69    .25    .35    .62    .22   -.46    .11    .84    .11    .30   -.76
    Final sales of computers........    .14    .08    .31    .10    .19    .42   -.13   -.21    .19   -.02    .10    .31    .23    .25    .28    .64    .26    .00   -.01
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                            --------------------------------------------          --------------------------------------------  -------------------------
                                       2003    II 03   III 03    IV 03     I 04    II 04r    2003    II 03   III 03    IV 03     I 04    II 04r    2003     I 04    II 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 11,004.0 10,884.0 11,116.7 11,270.9 11,472.6 11,643.1 10,381.3 10,287.4 10,472.8 10,580.7 10,697.5 10,771.4    306.5    116.8     73.9

Personal consumption expenditures.  7,760.9  7,696.3  7,822.5  7,914.9  8,060.2  8,154.9  7,355.6  7,311.4  7,401.7  7,466.8  7,543.0  7,572.7    232.2     76.2     29.7

  Durable goods...................    950.7    946.8    972.7    971.1    976.3    976.2  1,030.6  1,020.0  1,059.6  1,069.7  1,075.5  1,075.4     71.0      5.8      -.1
    Motor vehicles and parts......    440.1    442.4    452.5    444.1    438.4    433.4    452.1    451.3    465.6    463.5    456.7    450.5     23.4     -6.8     -6.2
    Furniture and household
     equipment....................    328.0    323.9    333.3    338.0    345.0    348.4    393.5    385.2    405.0    414.6    425.6    433.1     32.8     11.0      7.5
    Other.........................    182.6    180.5    186.9    189.0    193.0    194.3    186.5    184.4    190.5    194.0    196.9    196.7     15.6      2.9      -.2

  Nondurable goods................  2,200.1  2,163.6  2,219.2  2,250.1  2,316.6  2,356.4  2,112.4  2,090.1  2,125.3  2,152.0  2,187.3  2,189.8     75.0     35.3      2.5
    Food..........................  1,064.5  1,052.2  1,074.6  1,091.8  1,120.3  1,138.3    995.1    988.0  1,002.2  1,008.6  1,028.4  1,035.0     36.7     19.8      6.6
    Clothing and shoes............    307.2    303.6    311.0    314.4    325.0    323.2    330.2    327.1    334.9    338.2    351.2    346.8     13.5     13.0     -4.4
    Gasoline, fuel oil, and other
     energy goods.................    208.2    195.6    207.6    210.7    229.7    243.3    197.3    192.1    194.6    203.3    202.1    195.1      1.3     -1.2     -7.0
    Other.........................    620.1    612.3    626.0    633.1    641.5    651.7    589.6    582.8    593.6    602.1    606.6    614.0     23.3      4.5      7.4

  Services........................  4,610.1  4,585.9  4,630.6  4,693.6  4,767.3  4,822.3  4,220.3  4,207.7  4,227.9  4,256.7  4,291.7  4,317.9     91.7     35.0     26.2
    Housing.......................  1,188.4  1,182.7  1,193.4  1,202.8  1,215.4  1,232.7  1,076.1  1,074.3  1,078.1  1,080.3  1,086.0  1,091.5     14.1      5.7      5.5
    Household operation...........    431.3    428.9    431.8    438.1    445.6    443.6    400.2    396.8    398.7    406.0    409.3    404.7      6.1      3.3     -4.6
      Electricity and gas.........    167.3    166.3    166.7    171.2    175.7    170.3    147.2    144.5    144.7    150.6    151.9    145.4      2.5      1.3     -6.5
      Other household operation...    264.0    262.6    265.0    266.8    270.0    273.3    253.0    252.3    254.2    255.2    257.1    259.7      3.6      1.9      2.6
    Transportation................    294.0    293.0    295.1    296.5    297.8    300.4    277.7    277.7    277.1    276.7    278.1    280.0     -2.2      1.4      1.9
    Medical care..................  1,301.1  1,290.5  1,312.1  1,334.0  1,356.8  1,380.2  1,184.3  1,179.7  1,189.3  1,198.3  1,207.9  1,222.5     45.0      9.6     14.6
    Recreation....................    317.2    315.5    319.0    323.4    330.8    333.0    290.3    289.6    291.2    294.1    298.3    298.5      8.8      4.2       .2
    Other.........................  1,078.1  1,075.3  1,079.1  1,098.8  1,120.9  1,132.5    990.7    988.8    992.5  1,000.3  1,011.2  1,019.6     19.6     10.9      8.4

Gross private domestic investment.  1,665.8  1,611.1  1,696.6  1,758.8  1,819.7  1,913.1  1,628.8  1,577.6  1,659.4  1,714.1  1,764.5  1,836.2     68.1     50.4     71.7

  Fixed investment................  1,667.0  1,626.4  1,700.2  1,755.2  1,783.5  1,857.7  1,627.3  1,593.4  1,660.6  1,702.7  1,721.4  1,775.0     78.4     18.7     53.6
    Nonresidential................  1,094.7  1,072.7  1,113.3  1,146.3  1,158.8  1,197.7  1,110.8  1,090.6  1,131.1  1,161.0  1,173.0  1,207.0     35.2     12.0     34.0
      Structures..................    261.6    262.3    262.3    268.2    266.0    274.9    237.4    238.7    237.9    242.4    237.7    241.8    -14.2     -4.7      4.1
      Equipment and software......    833.1    810.4    851.1    878.1    892.8    922.8    879.2    856.7    899.7    925.6    943.7    974.4     52.7     18.1     30.7
        Information processing
         equipment and software...    431.2    419.3    442.8    454.7    468.5    481.2    492.4    475.7    507.1    526.6    547.0    564.8     52.8     20.4     17.8
          Computers and peripheral
           equipment..............     95.3     91.5     99.7    104.5    104.4    108.8    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    165.8    162.8    169.1    170.5    176.8    180.1    171.2    166.8    174.6    178.5    185.6    189.3      7.6      7.1      3.7
          Other...................    170.0    165.0    174.0    179.7    187.4    192.3    179.4    173.7    183.9    190.4    200.2    205.8     15.1      9.8      5.6
        Industrial equipment......    139.8    139.3    140.8    139.5    143.1    145.1    137.6    137.3    138.4    136.8    139.0    139.9       .2      2.2       .9
        Transportation equipment..    126.6    121.4    128.8    140.0    134.5    142.7    121.6    120.5    124.3    127.8    122.7    129.5     -4.0     -5.1      6.8
        Other equipment...........    135.5    130.3    138.7    144.0    146.6    153.8    131.2    126.1    134.0    139.3    142.1    147.4      6.7      2.8      5.3
    Residential...................    572.3    553.8    586.9    609.0    624.6    660.0    511.2    497.9    523.8    535.9    542.5    561.5     41.2      6.6     19.0

  Change in private inventories...     -1.2    -15.3     -3.7      3.5     36.2     55.4      -.8    -17.6     -3.5      8.6     40.0     57.7    -12.5     31.4     17.7
    Farm..........................       .3       .9      -.9      -.9      1.0     -2.4       .3     -1.8      -.7      3.5      5.1      3.0      1.9      1.6     -2.1
    Nonfarm.......................     -1.5    -16.2     -2.8      4.5     35.2     57.7     -1.1    -15.7     -2.7      4.6     34.5     55.3    -14.6     29.9     20.8

Net exports of goods and services.   -498.1   -497.6   -488.8   -502.8   -546.8   -599.6   -518.5   -525.2   -508.7   -528.3   -550.1   -588.7    -46.4    -21.8    -38.6

  Exports.........................  1,046.2  1,018.1  1,047.7  1,099.2  1,134.3  1,164.5  1,031.8  1,006.5  1,033.8  1,076.2  1,095.4  1,111.9     19.5     19.2     16.5
    Goods.........................    726.4    709.8    725.9    761.3    790.3    810.5    721.7    705.9    723.1    750.6    767.2    776.6     15.3     16.6      9.4
    Services......................    319.8    308.3    321.7    337.9    344.1    354.0    309.9    300.4    310.5    325.4    328.1    335.0      4.2      2.7      6.9

  Imports.........................  1,544.3  1,515.7  1,536.4  1,602.0  1,681.2  1,764.1  1,550.3  1,531.7  1,542.5  1,604.5  1,645.5  1,700.6     65.9     41.0     55.1
    Goods.........................  1,282.0  1,262.6  1,270.3  1,326.4  1,399.2  1,472.2  1,307.3  1,297.3  1,297.3  1,353.2  1,394.1  1,439.3     58.8     40.9     45.2
    Services......................    262.3    253.1    266.1    275.6    282.0    291.9    243.3    235.3    245.2    251.7    252.4    262.2      7.4       .7      9.8

Government consumption expenditures
 and gross investment.............  2,075.5  2,074.2  2,086.4  2,100.0  2,139.5  2,174.6  1,909.4  1,915.3  1,916.0  1,923.7  1,935.8  1,947.4     51.5     12.1     11.6

  Federal.........................    752.2    761.1    756.7    767.5    793.3    804.4    689.6    699.0    693.1    701.2    713.3    718.1     43.0     12.1      4.8
    National defense..............    496.4    506.7    498.1    513.6    534.1    541.3    451.8    462.3    453.1    465.7    477.6    479.9     37.2     11.9      2.3
      Consumption expenditures....    436.1    446.7    437.1    450.2    465.2    473.5    390.3    401.0    391.1    401.4    408.5    412.4     32.1      7.1      3.9
      Gross investment............     60.4     59.9     61.0     63.4     69.0     67.8     61.6     61.2     62.1     64.6     69.9     67.9      5.0      5.3     -2.0
    Nondefense....................    255.7    254.4    258.7    253.9    259.1    263.1    237.6    236.5    239.9    235.2    235.4    238.0      5.6       .2      2.6
      Consumption expenditures....    222.5    219.0    225.9    221.1    225.9    226.4    204.0    200.9    206.7    202.0    201.8    201.3      5.0      -.2      -.5
      Gross investment............     33.2     35.4     32.8     32.8     33.2     36.7     33.5     35.7     33.1     33.2     33.6     37.0       .6       .4      3.4

  State and local.................  1,323.3  1,313.1  1,329.7  1,332.6  1,346.3  1,370.2  1,219.8  1,216.3  1,222.9  1,222.5  1,222.4  1,229.2      8.4      -.1      6.8
      Consumption expenditures....  1,058.5  1,051.8  1,061.0  1,066.3  1,079.8  1,091.6    969.0    968.6    968.8    970.9    971.5    971.4      6.8       .6      -.1
      Gross investment............    264.9    261.4    268.7    266.2    266.4    278.7    250.9    247.7    254.3    251.6    251.0    258.0      1.7      -.6      7.0

Residual..........................    .....    .....    .....    .....    .....    .....    -14.9     -8.2    -23.5    -26.7    -31.3    -35.7    .....    .....    .....

Addenda:
  Final sales of domestic product. 11,005.3 10,899.3 11,120.4 11,267.4 11,436.4 11,587.7 10,379.9 10,302.5 10,473.9 10,569.6 10,655.8 10,712.3    316.7     86.2     56.5
  Gross domestic purchases........ 11,502.2 11,381.6 11,605.5 11,773.7 12,019.4 12,242.7 10,895.7 10,808.1 10,978.3 11,104.3 11,241.9 11,352.7    351.1    137.6    110.8
  Final sales to domestic
   purchasers..................... 11,503.4 11,397.0 11,609.2 11,770.1 11,983.2 12,187.3 10,894.2 10,823.3 10,979.4 11,093.2 11,200.1 11,293.5    361.2    106.9     93.4

  Gross domestic product.......... 11,004.0 10,884.0 11,116.7 11,270.9 11,472.6 11,643.1 10,381.3 10,287.4 10,472.8 10,580.7 10,697.5 10,771.4    306.5    116.8     73.9
  Plus: Income receipts from
   the rest of the world..........    329.0    309.8    329.8    371.8    373.8    380.2    311.9    294.5    312.1    350.7    349.6    352.6     20.2     -1.1      3.0
  Less: Income payments to
   the rest of the world..........    273.9    264.7    278.2    284.6    300.3    346.6    259.2    251.2    263.2    268.0    280.3    320.9     -5.7     12.3     40.6
  Equals: Gross national product.. 11,059.2 10,929.0 11,168.3 11,358.1 11,546.1 11,676.6 10,433.9 10,330.8 10,521.7 10,663.3 10,766.7 10,803.0    332.2    103.4     36.3

  Net domestic product............  9,650.1  9,537.0  9,756.2  9,896.7 10,117.6 10,269.0  9,045.8  8,957.6  9,132.0  9,228.4  9,344.1  9,410.9    267.9    115.7     66.8
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003 III 00  IV 00   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.4    1.7    1.8    1.9    1.8    3.3    3.1    1.6    1.7    1.4    1.5    1.7    2.0    2.7    1.1    1.4    1.6    2.8    3.2

Personal consumption expenditures...    2.1    1.4    1.9    1.9    1.8    3.3    2.6     .6     .6     .9    2.9    2.0    1.4    3.2     .7    1.6    1.2    3.3    3.2
  Durable goods.....................   -1.9   -2.7   -3.4   -2.5   -1.0   -1.4   -3.1   -2.8   -1.6   -3.8   -2.5   -2.1   -2.8   -3.7   -3.8   -4.4   -4.3     .0    -.1
  Nondurable goods..................    1.5     .6    2.0    3.4    1.4    1.4    3.5    -.9   -4.0     .0    5.4    1.3    1.2    5.1   -2.2    3.5     .5    5.3    6.6
  Services..........................    3.3    2.7    3.0    2.1    2.6    5.3    3.4    2.0    3.3    2.3    2.8    3.2    2.4    3.8    3.1    2.0    2.7    3.0    2.2

Gross private domestic investment...    1.0     .2    1.1    1.9     .8     .0    1.5    2.1     .2   -1.0    -.1    -.5    2.6    1.4    -.1    1.2    2.7    2.1    4.3
  Fixed investment..................    1.0     .2    1.2    1.9     .9    -.3    1.8    2.2     .1   -1.1    -.1    -.4    2.7    1.9    -.3    1.2    2.8    2.0    4.2
    Nonresidential..................    -.3    -.8    -.4    1.4     .0   -2.3     .6     .3   -1.0   -1.3   -1.1   -1.3     .6    -.5   -1.3     .3    1.2     .3    1.8
      Structures....................    5.4    2.4    2.1    4.5    5.0    6.0    6.5    6.6    2.1     .0    2.1    1.6    3.0    3.9     .0    1.3    1.4    4.8    6.6
      Equipment and software........   -2.3   -1.9   -1.2     .4   -1.7   -5.1   -1.5   -2.0   -2.2   -1.7   -2.2   -2.2    -.1   -1.9   -1.7     .0    1.2   -1.1     .4
    Residential.....................    4.6    2.5    4.4    3.2    3.4    5.5    5.0    6.9    2.8    -.8    2.1    1.6    7.1    6.8    1.7    3.1    5.8    5.4    8.6
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    -.4    -.4    2.1     .9     .4     .1   -1.3   -2.0   -3.5   -1.2    3.0    3.0     .4    4.1    1.0     .8    3.2    5.7    4.6
    Goods...........................    -.7    -.7    2.0     .3     .4    -.1   -1.6   -2.6   -3.8   -1.4    2.2    3.3     .5    3.5    1.6    -.6    4.2    6.4    5.4
    Services........................     .4     .4    2.4    2.5     .6     .6    -.7    -.6   -2.8    -.6    4.8    2.4     .3    5.4    -.6    4.0     .9    4.0    3.0
  Imports...........................   -2.5   -1.2    3.4    4.2     .7   -3.0   -5.9   -5.3  -10.0   -1.9   10.5    3.4     .5   11.3   -4.3    2.6     .9    9.6    6.3
    Goods...........................   -3.0   -1.8    2.9    4.5     .8   -3.8   -6.6   -6.5  -11.3   -2.0   10.8    2.6     .4   12.0   -6.7    2.4     .4    9.9    7.9
    Services........................     .1    1.7    5.9    2.5     .3    1.5   -2.2    1.2   -3.3   -1.2    8.8    7.7     .9    7.9    8.4    3.6    3.5    8.3   -1.3

Government consumption expenditures
 and gross investment...............    2.5    2.7    3.2    4.5    2.7    3.1    1.8    1.6    1.1    4.2    3.1    2.7    3.3    7.4    -.5    2.2    1.0    5.1    4.2
  Federal...........................    1.9    3.3    3.6    5.0    1.6    1.9    1.1    2.2    1.8    7.4    1.4    1.8    5.1    8.5     .3    1.1    1.0    6.6    2.9
    National defense................    2.0    3.4    4.2    3.6     .9    3.5     .7    2.5     .8    7.1    1.6    2.9    7.7    8.6    -.3    1.1    1.3    5.7    3.5
    Nondefense......................    1.7    3.1    2.6    7.5    2.7   -1.0    1.8    1.6    3.4    8.0    1.1    -.2     .5    8.2    1.4    1.0     .3    8.3    1.8
  State and local...................    2.9    2.4    3.0    4.2    3.2    3.8    2.1    1.3     .8    2.5    4.0    3.2    2.4    6.8   -1.0    2.9    1.0    4.2    5.0

Addenda:
  Final sales of domestic product...    2.4    1.7    1.8    1.9    1.8    3.3    3.2    1.6    1.7    1.3    1.5    1.7    2.0    2.8    1.1    1.4    1.6    2.7    3.2
  Gross domestic purchases..........    2.0    1.5    2.0    2.3    1.8    2.7    2.3    1.0     .6    1.2    2.5    1.8    1.9    3.7     .4    1.7    1.4    3.4    3.5
  Final sales to domestic
   purchasers.......................    2.0    1.5    2.0    2.3    1.8    2.7    2.3    1.0     .6    1.1    2.5    1.8    1.9    3.8     .3    1.7    1.4    3.4    3.5
  Gross national product (GNP)......    2.4    1.6    1.8    1.9    1.8    3.3    3.1    1.6    1.7    1.3    1.5    1.7    2.0    2.7    1.1    1.5    1.6    2.8    3.2

  Implicit price deflators:
    GDP.............................    2.4    1.7    1.8    2.1    1.6    3.3    3.1    1.7    2.0    1.0    1.8    1.3    2.0    2.9    1.1    1.3    1.4    2.7    3.2
    Gross domestic purchases........    2.0    1.5    2.0    2.5    1.6    2.7    2.2    1.1     .9     .8    2.8    1.4    1.9    3.9     .4    1.6    1.2    3.4    3.5
    GNP.............................    2.4    1.6    1.8    2.1    1.6    3.2    3.1    1.7    2.0    1.0    1.8    1.3    2.0    2.9    1.1    1.3    1.4    2.7    3.2
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2001       2002       2003      II 03     III 03      IV 03       I 04      II 04r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    100.751    102.626    105.749    104.792    106.681    107.780    108.969    109.722

Personal consumption expenditures..........    102.537    105.698    109.143    108.488    109.828    110.794    111.925    112.365
  Durable goods............................    104.327    111.150    119.378    118.146    122.733    123.902    124.572    124.569
  Nondurable goods.........................    102.027    104.630    108.481    107.338    109.145    110.517    112.331    112.457
  Services.................................    102.403    105.085    107.418    107.099    107.613    108.346    109.237    109.904

Gross private domestic investment..........     92.103     89.928     93.852     90.902     95.616     98.771    101.672    105.802
  Fixed investment.........................     97.047     92.253     96.924     94.902     98.904    101.412    102.529    105.718
    Nonresidential.........................     95.817     87.302     90.157     88.518     91.802     94.235     95.204     97.965
      Structures...........................     97.737     80.346     75.810     76.203     75.955     77.406     75.886     77.203
      Equipment and software...............     95.136     89.947     95.679     93.235     97.917    100.735    102.699    106.036
    Residential............................    100.357    105.178    114.392    111.420    117.201    119.916    121.400    125.644
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     94.565     92.343     94.116     91.813     94.300     98.170     99.924    101.424

Imports of goods and services..............     97.291    100.585    105.048    103.792    104.522    108.725    111.504    115.233

Government consumption expenditures and
 gross investment..........................    103.412    107.918    110.906    111.251    111.290    111.738    112.443    113.115
  Federal..................................    103.908    111.725    119.140    120.765    119.751    121.154    123.249    124.078
  State and local..........................    103.162    105.999    106.739    106.432    107.006    106.968    106.965    107.556

Addenda:
  Final sales of domestic product..........    101.644    103.102    106.346    105.553    107.309    108.290    109.173    109.752
  Gross domestic purchases.................    100.918    103.414    106.858    105.999    107.668    108.904    110.253    111.340
  Final sales to domestic purchasers.......    101.781    103.876    107.438    106.739    108.279    109.401    110.455    111.376
  Gross national product...................    100.788    102.494    105.865    104.818    106.755    108.192    109.241    109.609
-----------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2001       2002       2003      II 03     III 03      IV 03       I 04      II 04r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    102.402    104.097    106.003    105.780    106.158    106.586    107.314    108.169

Personal consumption expenditures..........    102.094    103.548    105.511    105.269    105.689    106.005    106.860    107.693
  Durable goods............................     98.114     95.475     92.244     92.787     91.757     90.747     90.741     90.726
  Nondurable goods.........................    101.531    102.097    104.154    103.520    104.423    104.564    105.914    107.615
  Services.................................    103.257    106.083    109.237    108.993    109.529    110.266    111.085    111.685

Gross private domestic investment..........    101.013    101.221    102.304    101.969    102.276    102.968    103.514    104.615
  Fixed investment.........................    101.023    101.232    102.435    102.085    102.401    103.101    103.618    104.679
    Nonresidential.........................     99.683     98.909     98.546     98.354     98.431     98.729     98.793     99.234
      Structures...........................    105.403    107.908    110.176    109.906    110.255    110.633    111.926    113.718
      Equipment and software...............     97.708     95.868     94.754     94.585     94.588     94.862     94.611     94.709
    Residential............................    104.633    107.246    111.951    111.253    112.097    113.675    115.179    117.588
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     99.624     99.275    101.395    101.160    101.355    102.146    103.565    104.745

Imports of goods and services..............     97.497     96.326     99.615     98.959     99.606     99.837    102.163    103.733

Government consumption expenditures and
 gross investment..........................    102.544    105.313    108.702    108.299    108.898    109.167    110.522    111.670
  Federal..................................    101.907    105.288    109.081    108.892    109.181    109.447    111.203    112.013
  State and local..........................    102.868    105.317    108.485    107.959    108.736    109.007    110.131    111.476

Addenda:
  Final sales of domestic product..........    102.406    104.100    106.025    105.799    106.179    106.608    107.332    108.179
  Gross domestic purchases.................    101.994    103.489    105.571    105.287    105.721    106.086    106.980    107.909
  Final sales to domestic purchasers.......    101.998    103.491    105.592    105.305    105.741    106.107    106.997    107.919
  Gross national product...................    102.399    104.087    105.997    105.772    106.156    106.579    107.308    108.164

  Implicit price deflators:
    Gross domestic product.................    102.399    104.092    105.998    105.799    106.148    106.523    107.246    108.093
    Final sales of domestic product........    102.407    104.100    106.025    105.793    106.173    106.601    107.325    108.172
    Gross domestic purchases...............    101.992    103.484    105.566    105.306    105.713    106.028    106.916    107.839
    Final sales to domestic purchasers.....    101.998    103.491    105.592    105.300    105.735    106.102    106.992    107.914
    Gross national product.................    102.396    104.082    105.992    105.791    106.146    106.516    107.240    108.087
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  See "Explanatory Note" at the end of the tables.

                                               Table 7.--Real Gross Domestic Product: Percent Change from Preceding Year
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           1988    1989    1990    1991    1992    1993    1994    1995    1996    1997    1998    1999    2000    2001    2002    2003
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     4.1     3.5     1.9     -.2     3.3     2.7     4.0     2.5     3.7     4.5     4.2     4.5     3.7      .8     1.9     3.0

Personal consumption expenditures......     4.1     2.8     2.0      .2     3.3     3.3     3.7     2.7     3.4     3.8     5.0     5.1     4.7     2.5     3.1     3.3
  Durable goods........................     6.0     2.2     -.3    -5.6     5.9     7.8     8.4     4.4     7.8     8.6    11.3    11.7     7.3     4.3     6.5     7.4
  Nondurable goods.....................     3.3     2.8     1.6     -.2     2.0     2.7     3.5     2.2     2.6     2.7     4.0     4.6     3.8     2.0     2.6     3.7
  Services.............................     4.0     3.0     2.9     1.7     3.5     2.8     2.9     2.6     2.9     3.3     4.2     4.0     4.5     2.4     2.6     2.2

Gross private domestic investment......     2.4     4.0    -3.4    -8.1     8.1     8.9    13.6     3.1     8.9    12.4     9.8     7.8     5.7    -7.9    -2.4     4.4
  Fixed investment.....................     3.3     3.0    -2.1    -6.5     5.9     8.6     9.3     6.5     9.0     9.2    10.2     8.3     6.5    -3.0    -4.9     5.1
    Nonresidential.....................     5.2     5.6      .5    -5.4     3.2     8.7     9.2    10.5     9.3    12.1    11.1     9.2     8.7    -4.2    -8.9     3.3
      Structures.......................      .6     2.0     1.5   -11.1    -6.0     -.7     1.8     6.4     5.6     7.3     5.1     -.4     6.8    -2.3   -17.8    -5.6
      Equipment and software...........     7.5     7.3      .0    -2.6     7.3    12.5    11.9    12.0    10.6    13.8    13.3    12.7     9.4    -4.9    -5.5     6.4
    Residential........................    -1.0    -3.0    -8.6    -9.6    13.8     8.2     9.6    -3.2     8.0     1.9     7.6     6.0      .8      .4     4.8     8.8
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................    16.0    11.5     9.0     6.6     6.9     3.2     8.7    10.1     8.4    11.9     2.4     4.3     8.7    -5.4    -2.3     1.9
    Goods..............................    18.8    11.9     8.4     6.9     7.5     3.3     9.7    11.7     8.8    14.3     2.2     3.8    11.2    -6.1    -4.1     2.2
    Services...........................     9.0    10.3    10.5     6.0     5.5     3.2     6.3     6.3     7.2     5.9     2.9     5.6     2.9    -3.7     1.8     1.4
  Imports..............................     3.9     4.4     3.6     -.6     7.0     8.8    11.9     8.0     8.7    13.6    11.6    11.5    13.1    -2.7     3.4     4.4
    Goods..............................     4.0     4.3     3.0     -.1     9.3    10.1    13.3     9.0     9.3    14.4    11.7    12.4    13.5    -3.2     3.7     4.7
    Services...........................     3.4     4.9     6.5    -2.6    -2.6     2.9     5.7     3.3     5.5     9.4    11.4     6.9    11.1     -.3     1.9     3.1

Government consumption expenditures
 and gross investment..................     1.3     2.6     3.2     1.1      .5     -.9      .0      .5     1.0     1.9     1.9     3.9     2.1     3.4     4.4     2.8
  Federal..............................    -1.6     1.5     2.0     -.2    -1.7    -4.2    -3.7    -2.7    -1.2    -1.0    -1.1     2.2      .9     3.9     7.5     6.6
    National defense...................     -.5     -.5      .0    -1.1    -5.0    -5.6    -4.9    -3.8    -1.4    -2.8    -2.1     1.9     -.5     3.9     7.7     9.0
    Nondefense.........................    -5.1     8.3     8.3     2.4     6.9     -.7    -1.2     -.4     -.7     2.6      .7     2.8     3.5     3.9     7.1     2.4
  State and local......................     3.7     3.4     4.1     2.1     2.2     1.4     2.6     2.6     2.3     3.6     3.6     4.7     2.7     3.2     2.8      .7

Addenda:
  Final sales of domestic product......     4.3     3.4     2.1      .1     3.0     2.6     3.4     3.0     3.7     4.0     4.2     4.5     3.8     1.6     1.4     3.1
  Gross domestic purchases.............     3.2     3.0     1.4     -.8     3.3     3.2     4.4     2.4     3.8     4.8     5.3     5.3     4.4      .9     2.5     3.3
  Final sales to domestic purchasers...     3.4     2.8     1.6     -.6     3.1     3.2     3.8     2.8     3.8     4.3     5.3     5.4     4.5     1.8     2.1     3.4
  Gross national product...............     4.2     3.5     2.0     -.3     3.3     2.7     3.9     2.6     3.7     4.4     4.0     4.6     3.7      .8     1.7     3.3
  Real disposable personal income......     4.3     2.8     1.9      .5     3.4     1.0     2.7     2.8     3.0     3.5     5.8     3.0     4.8     1.9     3.1     2.3

  Price indexes:
    Gross domestic purchases...........     3.4     3.8     4.1     3.3     2.3     2.2     2.1     2.1     1.8     1.4      .6     1.6     2.5     2.0     1.5     2.0
    Gross domestic purchases excluding
     food and energy...................     3.7     3.6     3.7     3.5     2.6     2.3     2.2     2.2     1.5     1.3     1.0     1.4     1.9     1.9     1.8     1.6
    GDP................................     3.4     3.8     3.9     3.5     2.3     2.3     2.1     2.0     1.9     1.7     1.1     1.4     2.2     2.4     1.7     1.8
    GDP excluding food and energy......     3.4     3.6     3.7     3.6     2.5     2.4     2.2     2.1     1.7     1.7     1.2     1.5     2.0     2.1     2.0     1.6
    Personal consumption expenditures..     4.0     4.4     4.6     3.6     2.9     2.3     2.1     2.1     2.2     1.7      .9     1.7     2.5     2.1     1.4     1.9
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                         III 00   IV 00    I 01   II 01  III 01   IV 01    I 02   II 02  III 02   IV 02    I 03   II 03  III 03   IV 03    I 04r  II 04r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     3.5     2.2     1.9      .6      .4      .2     1.2     1.5     2.5     2.3     1.9     2.3     3.5     4.4     5.0     4.7

Personal consumption expenditures......     4.5     4.1     2.9     2.5     2.0     2.8     2.9     3.3     3.6     2.5     2.7     3.0     3.5     3.8     4.2     3.6
  Durable goods........................     5.2     4.7      .8     3.2     2.5    10.8     6.6     7.8    10.6     1.5     3.8     7.6     8.2     9.9    10.5     5.4
  Nondurable goods.....................     4.3     3.0     3.0     1.6     1.6     1.9     2.7     3.0     2.2     2.3     2.6     2.8     4.7     4.6     5.1     4.8
  Services.............................     4.4     4.5     3.3     2.8     2.0     1.6     2.2     2.6     2.9     2.9     2.6     2.1     2.0     2.2     2.5     2.6

Gross private domestic investment......     5.8     1.4     -.5    -8.5    -8.6   -13.8    -7.1    -5.1    -1.5     5.0      .7     1.5     5.7     9.4    12.8    16.4
  Fixed investment.....................     5.5     5.1     1.6    -2.9    -3.8    -6.7    -7.1    -5.8    -4.6    -2.1     -.4     3.1     7.4    10.3    10.9    11.4
    Nonresidential.....................     7.9     7.8     3.2    -3.9    -6.1    -9.6   -10.9    -9.9    -8.5    -6.0    -3.6     1.7     5.8     9.4    10.6    10.7
      Structures.......................     9.6     8.8     4.6     -.6    -1.4   -11.1   -13.7   -18.3   -22.9   -16.1   -14.8    -6.0    -2.1     1.5     3.0     1.3
      Equipment and software...........     7.3     7.5     2.7    -5.1    -7.8    -9.0    -9.8    -6.7    -2.7    -2.2      .5     4.4     8.4    12.1    13.1    13.7
    Residential........................     -.7    -1.9    -2.3     -.1     2.5     1.4     3.1     4.5     4.7     6.9     6.4     5.9    10.6    12.0    11.3    12.8
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................    10.1     6.5     3.4    -2.9    -9.9   -11.9    -9.6    -4.0     1.7     3.5     1.9    -1.1      .8     6.1     8.4    10.5
    Goods..............................    13.7     8.5     4.8    -3.2   -12.2   -13.0   -12.2    -5.0     1.2      .8     2.3    -1.2      .5     7.1     8.5    10.0
    Services...........................     1.6     1.8      .1    -2.0    -4.0    -8.9    -3.1    -1.8     2.7     9.8     1.0     -.9     1.5     3.8     8.3    11.5
  Imports..............................    13.8    11.2     5.9    -1.4    -7.2    -7.6    -3.9     2.1     6.3     9.7     6.0     3.8     3.2     4.9     8.1    11.0
    Goods..............................    14.1    11.3     6.3    -2.6    -7.8    -7.9    -4.8     3.3     7.1     9.8     6.7     4.3     2.8     5.1     8.8    10.9
    Services...........................    12.4    10.6     4.2     4.7    -3.7    -5.9      .7    -3.7     2.0     8.9     2.4     1.4     5.0     3.7     4.7    11.4

Government consumption expenditures
 and gross investment..................     1.7      .4     2.5     3.0     3.2     5.0     4.8     4.0     4.9     3.8     2.7     3.3     2.8     2.2     2.8     1.7
  Federal..............................      .3    -2.2     3.6     1.7     4.0     6.4     6.4     7.3     8.1     8.2     6.1     8.3     6.6     5.5     7.3     2.7
    National defense...................    -1.6    -3.5     4.2     1.3     3.8     6.5     6.2     8.0     8.2     8.5     6.2    12.1     9.0     8.5    12.1     3.8
    Nondefense.........................     3.9      .3     2.5     2.6     4.2     6.3     6.9     6.2     7.8     7.6     6.1     1.4     2.4      .0    -1.5      .6
  State and local......................     2.4     1.7     1.9     3.7     2.8     4.2     4.0     2.2     3.3     1.6      .9      .7      .8      .4      .4     1.1

Addenda:
  Final sales of domestic product......     3.5     2.9     2.2     1.6     1.2     1.5     1.2     1.4     2.0     1.2     1.7     2.6     3.8     4.5     4.7     4.0
  Gross domestic purchases.............     4.2     3.0     2.3      .7      .4      .4     1.6     2.1     3.1     3.1     2.4     2.8     3.7     4.3     5.1     5.0
  Final sales to domestic purchasers...     4.2     3.6     2.6     1.7     1.2     1.6     1.6     2.0     2.6     2.1     2.3     3.1     3.9     4.4     4.9     4.3
  Gross national product...............     3.5     2.4     1.9      .7      .2      .4     1.0     1.2     2.6     2.0     2.0     2.6     3.7     4.8     5.3     4.6
  Real disposable personal income......     5.7     4.4     2.4     1.3     2.8     1.2     3.5     4.6     1.4     2.9      .7     1.1     3.5     3.9     4.0     3.6

  Price indexes:
    Gross domestic purchases...........     2.5     2.4     2.1     2.3     1.9     1.6     1.3     1.3     1.5     1.8     2.5     1.9     1.9     1.8     1.7     2.5
    Gross domestic purchases excluding
     food and energy...................     1.9     1.8     1.7     1.8     1.9     2.1     1.9     1.8     1.8     1.6     1.8     1.6     1.5     1.4     1.5     1.9
    GDP................................     2.3     2.2     2.2     2.5     2.4     2.4     1.9     1.5     1.5     1.6     2.0     1.9     1.8     1.7     1.7     2.3
    GDP excluding food and energy......     2.1     2.0     1.8     2.0     2.1     2.3     2.2     2.0     1.9     1.7     1.9     1.6     1.5     1.4     1.4     1.9
    Personal consumption expenditures..     2.4     2.3     2.2     2.4     2.0     1.7     1.1     1.2     1.6     1.8     2.4     1.8     1.7     1.7     1.7     2.3
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the first
quarter of 2004.

                     Table 9.--Relation of Gross Domestic Product, Gross National Product, and National Income
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2001       2002       2003      II 03     III 03      IV 03       I 04r     II 04r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   10,128.0   10,487.0   11,004.0   10,884.0   11,116.7   11,270.9   11,472.6   11,643.1

Plus: Income receipts from the rest of the
 world.....................................      322.4      301.8      329.0      309.8      329.8      371.8      373.8      380.2
Less: Income payments to the rest of the
 world.....................................      278.8      274.7      273.9      264.7      278.2      284.6      300.3      346.6

Equals: Gross national product.............   10,171.6   10,514.1   11,059.2   10,929.0   11,168.3   11,358.1   11,546.1   11,676.6

Less: Consumption of fixed capital.........    1,281.5    1,303.9    1,353.9    1,347.0    1,360.6    1,374.2    1,355.0    1,374.1
Less: Statistical discrepancy..............      -89.6      -15.3       25.6       13.2       36.6       12.8       63.0       59.8

Equals: National income....................    8,979.8    9,225.4    9,679.6    9,568.8    9,771.1    9,971.1   10,128.1   10,242.8
  Compensation of employees................    5,942.1    6,069.5    6,289.0    6,245.6    6,324.7    6,406.7    6,489.4    6,570.6
    Wage and salary accruals...............    4,942.8    4,976.3    5,103.6    5,072.0    5,128.6    5,188.9    5,240.7    5,301.1
    Supplements to wages and salaries......      999.3    1,093.2    1,185.5    1,173.7    1,196.1    1,217.8    1,248.8    1,269.5
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      771.9      769.6      834.1      825.7      852.0      864.7      872.1      901.4
  Rental income of persons with capital
   consumption adjustment..................      167.4      170.9      153.8      144.1      148.8      167.1      172.8      172.4
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................      767.3      874.6    1,021.1      986.2    1,057.1    1,129.1    1,165.6    1,167.2
  Net interest and miscellaneous payments..      566.3      532.9      543.0      542.8      542.8      545.3      554.5      546.3
  Taxes on production and imports less
   subsidies...............................      673.3      724.4      751.3      737.7      757.4      769.4      782.9      793.9
  Business current transfer payments.......       92.8       80.9       77.7       76.9       78.9       80.1       82.7       83.5
  Current surplus of government
   enterprises.............................       -1.4        2.8        9.5        9.8        9.3        8.7        8.1        7.5

Addendum:
  Gross domestic income....................   10,217.6   10,502.3   10,978.5   10,870.8   11,080.1   11,258.1   11,409.6   11,583.3
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the first
quarter of 2004.

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2001       2002       2003      II 03     III 03      IV 03       I 04r     II 04r
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    8,724.1    8,878.9    9,161.8    9,105.7    9,209.3    9,330.0    9,445.0    9,585.3

  Compensation of employees, received......    5,942.1    6,069.5    6,289.0    6,247.0    6,324.7    6,406.7    6,487.9    6,572.1
    Wage and salary disbursements..........    4,942.8    4,976.3    5,103.6    5,073.3    5,128.6    5,188.9    5,239.2    5,302.6
    Supplements to wages and salaries......      999.3    1,093.2    1,185.5    1,173.7    1,196.1    1,217.8    1,248.8    1,269.5
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      771.9      769.6      834.1      825.7      852.0      864.7      872.1      901.4
    Farm...................................       19.7        9.7       21.8       24.1       24.8       24.7       17.9       18.9
    Nonfarm................................      752.2      759.9      812.3      801.6      827.2      840.0      854.2      882.5
  Rental income of persons with capital
   consumption adjustment..................      167.4      170.9      153.8      144.1      148.8      167.1      172.8      172.4
  Personal income receipts on assets.......    1,380.0    1,334.6    1,322.7    1,324.7    1,314.4    1,325.8    1,337.1    1,351.9
    Personal interest income...............    1,011.0      946.7      929.9      932.4      922.8      932.0      936.2      941.2
    Personal dividend income...............      369.0      387.9      392.8      392.3      391.6      393.8      400.9      410.6
  Personal current transfer receipts.......    1,193.9    1,282.7    1,335.4    1,333.1    1,346.2    1,350.7    1,379.0    1,400.2

  Less: Contributions for government
   social insurance........................      731.1      748.3      773.2      768.9      776.7      785.0      803.9      812.6

Less: Personal current taxes...............    1,237.3    1,051.2    1,001.9    1,030.7      941.7    1,009.4    1,006.6    1,029.4

Equals: Disposable personal income.........    7,486.8    7,827.7    8,159.9    8,075.0    8,267.6    8,320.5    8,438.4    8,555.9

Less: Personal outlays.....................    7,354.5    7,668.5    8,049.3    7,982.9    8,107.8    8,209.4    8,351.6    8,451.8

Equals: Personal saving....................      132.3      159.2      110.6       92.1      159.8      111.1       86.8      104.1

  Personal saving as a percentage of
   disposable personal income..............        1.8        2.0        1.4        1.1        1.9        1.3        1.0        1.2

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    7,333.3    7,559.5    7,733.8    7,671.1    7,822.9    7,849.6    7,897.0    7,945.1
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the first
quarter of 2004.
  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
                                                              ---------------------------------------                 ------------------------------- -------
                                         2001    2002    2003   II 03  III 03   IV 03    I 04   II 04    2002    2003  III 03   IV 03    I 04   II 04   II 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
 valuation and capital consumption
 adjustments.........................   767.3   874.6 1,021.1   986.2 1,057.1 1,129.1 1,165.6 1,167.2    14.0    16.8     7.2     6.8     3.2      .1    18.3

Less: Taxes on corporate income......   204.1   183.8   234.9   224.6   238.7   252.3   256.5   269.4    -9.9    27.8     6.3     5.7     1.6     5.0    20.0

Equals: Profits after tax with
 inventory valuation and capital
 consumption adjustments.............   563.2   690.7   786.2   761.7   818.4   876.8   909.1   897.8    22.6    13.8     7.4     7.1     3.7    -1.2    17.9
  Net dividends......................   370.9   390.0   395.3   394.7   394.1   396.4   403.4   413.4     5.2     1.4     -.1      .6     1.8     2.5     4.7
  Undistributed profits with
   inventory valuation and capital
   consumption adjustments...........   192.3   300.7   390.9   367.0   424.2   480.4   505.7   484.4    56.4    30.0    15.6    13.2     5.3    -4.2    32.0

Cash flow:
  Net cash flow with inventory
   valuation and capital consumption
   adjustments.......................   944.8 1,058.5 1,173.4 1,146.0 1,210.0 1,273.2 1,279.1 1,267.7    12.0    10.9     5.6     5.2      .5     -.9    10.6
    Undistributed profits with
     inventory valuation and capital
     consumption adjustments.........   192.3   300.7   390.9   367.0   424.2   480.4   505.7   484.4    56.4    30.0    15.6    13.2     5.3    -4.2    32.0
    Consumption of fixed capital.....   752.5   757.8   782.5   779.0   785.8   792.9   773.4   783.3      .7     3.3      .9      .9    -2.5     1.3      .6

  Less: Inventory valuation
   adjustment........................    11.3    -1.2   -14.1    -1.0    -3.8   -24.3   -37.0   -47.2   .....   .....   .....   .....   .....   .....   .....

  Equals: Net cash flow..............   933.5 1,059.8 1,187.5 1,147.0 1,213.8 1,297.6 1,316.1 1,314.9    13.5    12.1     5.8     6.9     1.4     -.1    14.6

Addenda:
  Profits before tax (without
   inventory valuation and capital
   consumption adjustments)..........   707.9   758.0   874.5   824.5   881.0   966.2   962.4   980.4     7.1    15.4     6.8     9.7     -.4     1.9    18.9
  Profits after tax (without
   inventory valuation and capital
   consumption adjustments)..........   503.8   574.2   639.6   600.0   642.3   713.9   705.9   711.0    14.0    11.4     7.1    11.2    -1.1      .7    18.5
  Inventory valuation adjustment.....    11.3    -1.2   -14.1    -1.0    -3.8   -24.3   -37.0   -47.2   .....   .....   .....   .....   .....   .....   .....
  Capital consumption adjustment.....    48.1   117.8   160.8   162.7   179.9   187.2   240.2   234.0   144.9    36.5    10.6     4.1    28.3    -2.6    43.8
-------------------------------------------------------------------------------------------------------------------------------------------------------------

                                      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
                                                                      ---------------------------------------  ----------------------------------------------
                                                 2001    2002    2003   II 03  III 03   IV 03    I 04   II 04    2002    2003  III 03   IV 03    I 04   II 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------
    Corporate profits with inventory
     valuation and capital consumption
     adjustments.............................   767.3   874.6 1,021.1   986.2 1,057.1 1,129.1 1,165.6 1,167.2   107.3   146.5    70.9    72.0    36.5     1.6

Domestic industries..........................   597.6   716.8   844.2   824.9   883.7   913.3   960.3   985.4   119.2   127.4    58.8    29.6    47.0    25.1
  Financial..................................   240.4   298.4   327.8   323.8   336.4   335.9   355.7   352.1    58.0    29.4    12.6     -.5    19.8    -3.6
  Nonfinancial...............................   357.2   418.4   516.4   501.1   547.3   577.3   604.6   633.3    61.2    98.0    46.2    30.0    27.3    28.7

Rest of the world............................   169.7   157.8   176.9   161.4   173.4   215.8   205.3   181.8   -11.9    19.1    12.0    42.4   -10.5   -23.5
  Receipts from the rest of the world........   182.6   206.0   250.7   230.5   253.1   293.4   299.0   297.3    23.4    44.7    22.6    40.3     5.6    -1.7
  Less: Payments to the rest of the world....    12.9    48.2    73.8    69.1    79.7    77.5    93.7   115.5    35.3    25.6    10.6    -2.2    16.2    21.8

    Corporate profits with inventory
     valuation adjustment....................   719.2   756.8   860.4   823.5   877.2   941.9   925.4   933.2    37.6   103.6    53.7    64.7   -16.5     7.8

Domestic industries..........................   549.5   599.0   683.4   662.2   703.8   726.1   720.0   751.5    49.5    84.4    41.6    22.3    -6.1    31.5
  Financial..................................   227.6   276.2   299.8   295.4   306.1   305.3   313.7   310.7    48.6    23.6    10.7     -.8     8.4    -3.0
    Federal Reserve banks....................    28.3    22.9    19.2    19.9    18.5    17.6    18.2    18.1    -5.4    -3.7    -1.4     -.9      .6     -.1
    Other financial..........................   199.3   253.3   280.6   275.5   287.6   287.8   295.5   292.6    54.0    27.3    12.1      .2     7.7    -2.9

  Nonfinancial...............................   322.0   322.8   383.6   366.8   397.6   420.7   406.4   440.7      .8    60.8    30.8    23.1   -14.3    34.3
    Utilities................................    24.7    11.4    18.8    15.3    18.6    24.3    23.2   .....   -13.3     7.4     3.3     5.7    -1.1   .....
    Manufacturing............................    52.6    50.7    67.3    54.1    66.8    93.4    81.5   .....    -1.9    16.6    12.7    26.6   -11.9   .....
      Durable goods..........................   -25.4    -8.3    -3.5    -8.5    -7.5     9.3     2.8   .....    17.1     4.8     1.0    16.8    -6.5   .....
        Fabricated metal products............     9.9     9.3    10.1    10.6    10.1    13.2    11.8   .....     -.6      .8     -.5     3.1    -1.4   .....
        Machinery............................     2.7     1.6     -.5     -.9     1.1     1.1     2.2   .....    -1.1    -2.1     2.0     0.0     1.1   .....
        Computer and electronic products.....   -48.5   -32.9   -15.4   -14.8   -15.2   -14.0   -17.2   .....    15.6    17.5     -.4     1.2    -3.2   .....
        Electrical equipment, appliances,
         and components......................     1.9     -.2    -3.2    -2.7    -4.3    -4.4    -8.1   .....    -2.1    -3.0    -1.6     -.1    -3.7   .....
        Motor vehicles, bodies and trailers,
         and parts...........................    -9.2    -6.0    -6.2    -9.0   -11.4    -5.0     -.5   .....     3.2     -.2    -2.4     6.4     4.5   .....
        Other durable goods..................    17.8    19.8    11.8     8.4    12.2    18.4    14.6   .....     2.0    -8.0     3.8     6.2    -3.8   .....

      Nondurable goods.......................    78.0    58.9    70.7    62.6    74.2    84.1    78.6   .....   -19.1    11.8    11.6     9.9    -5.5   .....
        Food and beverage and tobacco
         products............................    28.0    24.1    27.7    25.4    28.6    34.2    31.1   .....    -3.9     3.6     3.2     5.6    -3.1   .....
        Petroleum and coal products..........    29.6     4.0    14.8    12.5    12.6    18.7    24.5   .....   -25.6    10.8      .1     6.1     5.8   .....
        Chemical products....................    12.6    17.1    21.2    18.9    24.5    21.3    14.1   .....     4.5     4.1     5.6    -3.2    -7.2   .....
        Other nondurable goods...............     7.8    13.6     7.1     5.8     8.5     9.8     8.9   .....     5.8    -6.5     2.7     1.3     -.9   .....

    Wholesale trade..........................    52.1    51.0    47.9    45.1    53.1    50.1    46.0   .....    -1.1    -3.1     8.0    -3.0    -4.1   .....
    Retail trade.............................    71.0    78.1    77.7    82.6    78.9    74.7    80.0   .....     7.1     -.4    -3.7    -4.2     5.3   .....
    Transportation and warehousing...........     1.3    -1.3    10.5    12.4    11.9    12.4    11.7   .....    -2.6    11.8     -.5      .5     -.7   .....
    Information..............................   -25.6   -11.2     -.7    -1.8     6.7    -1.0    -6.6   .....    14.4    10.5     8.5    -7.7    -5.6   .....
    Other nonfinancial.......................   145.9   144.2   162.1   159.1   161.7   166.8   170.7   .....    -1.7    17.9     2.6     5.1     3.9   .....

Rest of the world............................   169.7   157.8   176.9   161.4   173.4   215.8   205.3   181.8   -11.9    19.1    12.0    42.4   -10.5   -23.5
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Note.--Estimates in this table are based on the 1997 North
American Industry Classification System (NAICS).

                             Table 13.--Gross Value Added of Nonfinancial Domestic Corporate Business
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2001       2002       2003      II 03     III 03      IV 03       I 04r     II 04r
-----------------------------------------------------------------------------------------------------------------------------------
                                                                             Billions of dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business....................    5,293.5    5,377.7    5,606.8    5,547.8    5,669.0    5,767.5    5,839.4    5,939.6

Consumption of fixed capital...............      646.8      655.7      676.4      673.7      679.0      684.3      671.8      680.3

Net value added............................    4,646.7    4,722.0    4,930.5    4,874.1    4,990.0    5,083.3    5,167.6    5,259.2

  Compensation of employees................    3,595.9    3,601.3    3,696.2    3,668.5    3,717.9    3,771.0    3,818.1    3,872.8
    Wage and salary accruals...............    3,016.5    2,971.0    3,006.9    2,985.5    3,022.4    3,062.8    3,089.9    3,130.9
    Supplements to wages and salaries......      579.3      630.3      689.3      683.1      695.4      708.3      728.1      742.0
  Taxes on production and imports less
   subsidies...............................      439.1      465.1      483.4      472.6      489.0      495.0      501.1      506.9
  Net operating surplus....................      611.8      655.5      750.8      733.0      783.2      817.2      848.5      879.5
    Net interest and miscellaneous
     payments..............................      204.0      181.7      170.8      169.6      170.2      172.1      174.8      176.6
    Business current transfer payments.....       50.6       55.5       63.5       62.3       65.7       67.8       69.0       69.6
    Corporate profits with inventory
     valuation and capital consumption
     adjustments...........................      357.2      418.4      516.4      501.1      547.3      577.3      604.6      633.3
      Taxes on corporate income............      111.7       89.0      130.0      120.5      132.2      146.8      147.7      161.8
      Profits after tax with inventory
       valuation and capital consumption
       adjustments.........................      245.5      329.4      386.4      380.6      415.1      430.5      456.9      471.5
        Net dividends......................      245.4      254.9      275.4      307.0      265.6      273.6      270.6      271.4
        Undistributed profits with
         inventory valuation and capital
         consumption adjustments...........         .1       74.5      111.0       73.6      149.5      156.9      186.2      200.1

Addenda:
  Profits before tax (without inventory
   valuation and capital consumption
   adjustments)............................      310.6      324.1      397.7      367.8      401.4      445.0      443.4      487.9
  Profits after tax (without inventory
   valuation and capital consumption
   adjustments)............................      198.9      235.1      267.7      247.3      269.2      298.2      295.6      326.1
  Inventory valuation adjustment...........       11.3       -1.2      -14.1       -1.0       -3.8      -24.3      -37.0      -47.2
  Capital consumption adjustment...........       35.2       95.6      132.9      134.3      149.7      156.6      198.3      192.5
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business\1\.................    5,229.7    5,306.6    5,520.2    5,463.8    5,579.6    5,670.7    5,711.5    5,756.5

Consumption of fixed capital\2\............      615.8      628.0      647.2      644.5      649.5      655.1      654.1      657.2
Net value added\3\.........................    4,613.8    4,678.6    4,873.0    4,819.3    4,930.1    5,015.6    5,057.4    5,099.3
                                           ----------------------------------------------------------------------------------------
                                                                                   Dollars
                                           ----------------------------------------------------------------------------------------
Price, costs, and profits per unit of real
 gross value added of nonfinancial
 corporate business:

  Price per unit of real gross value added
   of nonfinancial corporate business\4\...      1.012      1.013      1.016      1.015      1.016      1.017      1.022      1.032

  Compensation of employees (unit labor
   cost)...................................       .688       .679       .670       .671       .666       .665       .668       .673

  Unit nonlabor cost.......................       .257       .256       .253       .252       .252       .250       .249       .249
    Consumption of fixed capital...........       .124       .124       .123       .123       .122       .121       .118       .118
    Taxes on production and imports less
     subsidies plus business current
     transfer payments.....................       .094       .098       .099       .098       .099       .099       .100       .100
    Net interest and miscellaneous payments       .039       .034       .031       .031       .031       .030       .031       .031

  Corporate profits with inventory valuation
   and capital consumption adjustments (unit
   profits from current production)........       .068       .079       .094       .092       .098       .102       .106       .110
    Taxes on corporate income..............       .021       .017       .024       .022       .024       .026       .026       .028
    Profits after tax with inventory
     valuation and capital consumption
     adjustments...........................       .047       .062       .070       .070       .074       .076       .080       .082
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the first
quarter of 2004.
  1. Effective with the estimates scheduled for release on November 30,
2004, chained-dollar gross value added of nonfinancial corporate
business for 1929 to 2004 will be revised.  The current-dollar value
added will be deflated by a revised chain-type price index calculated
using the gross value added chain-type price index for nonfinancial
industries from the comprehensive revision to the GDP-by-industry
accounts.
  2. Chained-dollar consumption of fixed capital of nonfinancial
corporate business is calculated as the product of the chain-type
quantity index and the 2000 current-dollar value of the corresponding
series, divided by 100.
  3. Chained-dollar net value added of nonfinancial corporate
business is the difference between the gross value added and the
consumption of fixed capital.
  4. The deflator for gross value added of nonfinancial corporate
business divided by 100.
Note.--Estimates in this table are based on the 1997 North
American Industry Classification System (NAICS).

                      Appendix Table A.--Real Gross Domestic Product and Related Aggregates and Price Indexes: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003 III 00  IV 00   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................     .8    1.9    3.0    -.5    2.1    -.5    1.2   -1.4    1.6    3.4    2.4    2.6     .7    1.9    4.1    7.4    4.2    4.5    2.8

  Goods.............................   -1.7    1.2    4.3   -3.3     .2   -4.5   -1.3   -5.5    2.6    4.1     .9    4.7   -3.2    4.3    4.1   17.7    5.8    8.2    1.8
  Services..........................    2.4    3.0    2.3    1.5    3.6    1.9    1.8    1.7    2.8    3.4    4.2    2.2    3.0     .9    3.6    1.1    3.1    3.0    1.8
  Structures........................     .4   -2.4    3.0    -.7     .4     .4    7.0   -4.3   -8.5     .9   -3.3   -2.4     .9     .0    7.3   13.9    5.4     .7   12.3

  Motor vehicle output..............   -4.7   11.6    4.2  -18.1  -12.6  -18.5   36.3   -5.7   22.0    7.3   10.3   18.4    6.0  -12.4    3.0   26.3    2.9    8.8  -19.6
  GDP excluding motor vehicle
   output...........................    1.0    1.5    3.0     .3    2.7     .2     .2   -1.2     .9    3.3    2.1    2.1     .5    2.5    4.1    6.8    4.2    4.3    3.7

  Final sales of computers\1\.......   13.8    8.8   41.0    9.2   18.6   48.2  -11.2  -19.4   23.7   -3.7   12.2   46.0   30.9   35.1   37.8   93.7   29.0     .1   -1.1
  GDP excluding final sales of
   computers........................     .6    1.8    2.8    -.6    1.9    -.9    1.4   -1.2    1.4    3.4    2.3    2.3     .5    1.7    3.8    6.8    4.0    4.5    2.8

  Farm gross value added\2\.........   -8.3    6.5    4.0    4.8  -18.2   -1.3  -31.0  -20.4   94.2  -39.2   69.9   26.1  -19.5  -13.9   52.3     .5  -30.6  -31.3  -21.3

  Nonfarm business gross value
   added\3\.........................     .4    1.8    3.8    -.8    2.2   -1.1    1.2   -2.9    1.2    4.0    1.7    3.6    1.4    2.4    5.3    9.3    4.6    5.7    3.5

Price indexes:
  GDP...............................    2.4    1.7    1.8    1.9    1.8    3.3    3.1    1.6    1.7    1.4    1.5    1.7    2.0    2.7    1.1    1.4    1.6    2.8    3.2
  GDP excluding food and energy.....    2.1    2.0    1.6    1.7    1.7    2.4    2.3    2.1    2.6    1.7    1.8    1.6    1.7    2.3     .8    1.1    1.5    2.3    2.7
  GDP excluding final sales of
   computers........................    2.7    1.9    2.0    2.1    1.9    3.8    3.3    1.8    1.9    1.6    1.7    1.9    2.2    2.9    1.2    1.6    1.7    2.9    3.3

  Gross domestic purchases..........    2.0    1.5    2.0    2.3    1.8    2.7    2.3    1.0     .6    1.2    2.5    1.8    1.9    3.7     .4    1.7    1.4    3.4    3.5
  Gross domestic purchases excluding
   food and energy..................    1.9    1.8    1.6    1.6    1.4    2.3    2.0    1.8    2.3    1.5    1.7    1.6    1.6    2.2    1.0    1.2    1.5    2.5    2.5
  Gross domestic purchases excluding
   final sales of computers to
   domestic purchasers..............    2.3    1.7    2.2    2.5    2.0    3.3    2.6    1.3     .9    1.4    2.6    2.0    2.1    4.0     .5    1.9    1.5    3.6    3.7

  Personal consumption expenditures.    2.1    1.4    1.9    1.9    1.8    3.3    2.6     .6     .6     .9    2.9    2.0    1.4    3.2     .7    1.6    1.2    3.3    3.2
  Personal consumption expenditures
   excluding food and energy........    1.9    1.8    1.3     .9    1.5    2.8    2.1    1.4    2.6    1.2    2.0    2.0     .9    1.5    1.1     .9    1.3    2.1    1.7
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  1. For some components of final sales of computers, includes
computer parts.
  2. Farm output less intermediate goods and services purchased.
  3. Consists of GDP less gross value added of farm, of
households and institutions, and of general government.
  See "Explanatory Note" at the end of the tables.



     Explanatory Note: NIPA Measures of Quantities and Prices


     Current-dollar GDP is a measure of the market value of goods, services, and structures produced in
the economy in a particular period.  Changes in current-dollar GDP can be decomposed into quantity and
price components.  Quantities, or "real" measures, and prices are expressed as index numbers with the
reference year -- at present, the year 2000 -- equal to 100. 

     Annual changes in quantities and prices are calculated using a Fisher formula that incorporates
weights from two adjacent years.  (Quarterly changes in quantities and prices are calculated using a
Fisher formula that incorporates weights from two adjacent quarters; quarterly indexes are adjusted for
consistency to the annual indexes before percent changes are calculated.)  For example, the 2002-03
annual percent change in real GDP uses prices for 2002 and 2003 as weights, and the 2002-03 annual
percent change in GDP prices uses quantities for 2002 and 2003 as weights.  These annual changes are
"chained" (multiplied) together to form time series of quantity and price indexes.  Percent changes in
Fisher indexes are not affected by the choice of reference year.  (BEA also publishes a measure of the
price level known as the implicit price deflator (IPD), which is calculated as the ratio of the
current-dollar value to the corresponding chained-dollar value, multiplied by 100.  The values of the IPD
are very close to the values of the corresponding "chain-type" price index.)

     Index numbers of quantity and price indexes for GDP and its major components are presented in this
release in tables 5 and 6. Percent changes from the preceding period are presented in tables 1, 4, 7, and 8.
Contributions by major components to changes in real GDP are presented in table 2.  

     Measures of real GDP and its major components are also presented in dollar-denominated form,
designated "chained (2000) dollar estimates."  For most series, these estimates, which are presented in
table 3, are computed by multiplying the current-dollar value in 2000 by a corresponding quantity index
number and then dividing by 100.  For example, if a current-dollar GDP component equaled $100 in
2000 and if real output for this component increased 10 percent in 2001, then the chained (2000) dollar
value of this component in 2001 would be $110 (= $100 x 110 / 100). Percent changes calculated from
chained-dollar estimates and from chain-type quantity indexes are the same; any differences will be small
and due to rounding.  

     Chained-dollar values for the detailed GDP components will not necessarily sum to the chained-dollar
estimate of GDP (or to any intermediate aggregate). This is because the relative prices used as weights
for any period other than the reference year differ from those of the reference year. A measure of the
extent of such differences is provided by a "residual" line, which indicates the difference between GDP
(or other major aggregate) and the sum of the most detailed components in the table.  For periods close to
the reference year, when there usually has not been much change in the relative prices that are used as
weights, the residuals tend to be small, and the chained-dollar estimates can be used to approximate the
contributions to growth and to aggregate the detailed estimates.  For periods further from the reference
year, the residuals tend to be larger, and the chained-dollar estimates are less useful for analyses of
contributions to growth.  Thus, the contributions to percent change shown in table 2 provide a better
measure of the composition of GDP growth.  In particular, for components for which relative prices are
changing rapidly, calculation of contributions using chained-dollar estimates may be misleading even just
a few years from the reference year.

Reference: "Chained-Dollar Indexes: Issues, Tips on Their Use, and Upcoming Changes," November
2003 Survey, pp. 8-16.