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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.

Note: In the fourth quarter of 2004, the Microsoft Corporation paid a special dividend to its shareholders. The dividend payment affects the fourth-quarter estimate of personal income released on January 28, and will also affect the estimates of corporate profits, national income, and government current receipts that will be released on March 30. More information is available.

Effects of the Third-Quarter Hurricanes on Income Measures

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EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, WEDNESDAY, MARCH 30, 2005


Virginia H. Mannering:  (202)  606-5304   (GDP)                              BEA 05-12
Greg Key:               (202)  606-9727   (Profits)
Recorded message:       (202)  606-5306



               GROSS DOMESTIC PRODUCT:  FOURTH QUARTER 2004 (FINAL)
                     CORPORATE PROFITS:  FOURTH QUARTER 2004 


    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 3.8 percent in the fourth quarter of 2004,
according to final estimates released by the Bureau of Economic Analysis.  In the third quarter, real
GDP increased 4.0 percent. 

    The GDP estimates released today are based on more complete source data than were available
for the preliminary estimates issued last month.  In the preliminary estimates, the increase in real GDP
was also 3.8 percent (see "Revisions" on page 3).

    The major contributors to the increase in real GDP in the fourth quarter were personal
consumption expenditures (PCE), equipment and software, and private inventory investment.  Imports,
which are a subtraction in the calculation of GDP, increased.
    
    The small deceleration in real GDP growth in the fourth quarter primarily reflected an
acceleration in imports of goods and decelerations in PCE for durable goods and in exports of goods
that were partly offset by an upturn in private inventory investment.

    Final sales of computers contributed 0.56 percentage point to the fourth-quarter change in real
GDP after contributing 0.18 percentage point to the third-quarter change. Motor vehicle output
contributed 0.86 percentage point to the fourth-quarter change in real GDP after contributing 0.34
percentage point to the third-quarter change.  




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

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



    The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 2.9 percent in the fourth quarter, 0.1 percentage point more than the preliminary estimate;
this index increased 1.9 percent in the third quarter.  Excluding food and energy prices, the price index
for gross domestic purchases increased 2.0 percent in the fourth quarter, compared with an increase of
1.7 percent in the third.   

    Real personal consumption expenditures increased 4.2 percent in the fourth quarter, compared
with an increase of 5.1 percent in the third.  Real nonresidential fixed investment increased 14.5
percent, compared with an increase of 13.0 percent.  Nonresidential structures increased 2.1 percent, in
contrast to a decrease of 1.1 percent.  Equipment and software increased 18.4 percent, compared with
an increase of 17.5 percent.  Real residential fixed investment increased 3.4 percent, compared with an
increase of 1.6 percent.

    Real exports of goods and services increased 3.2 percent in the fourth quarter, compared with an
increase of 6.0 percent in the third.  Real imports of goods and services increased 11.4 percent,
compared with an increase of 4.6 percent.

    Real federal government consumption expenditures and gross investment increased 1.2 percent
in the fourth quarter, compared with an increase of 4.8 percent in the third.  National defense
decreased 0.6 percent, in contrast to an increase of 10.1 percent.  Nondefense increased 5.3 percent, in
contrast to a decrease of 5.3 percent.  Real state and local government consumption expenditures and
gross investment increased 0.6 percent, in contrast to a decrease of 1.7 percent.

    The real change in private inventories added 0.46 percentage point to the fourth-quarter change
in real GDP after subtracting 0.97 percentage point from the third-quarter change.  Private businesses
increased inventories $47.2 billion in the fourth quarter, following increases of $34.5 billion in the
third quarter and $61.1 billion in the second.

    Real final sales of domestic product -- GDP less change in private inventories -- increased 3.4
percent in the fourth quarter, compared with an increase of 5.0 percent in the third.


Gross domestic purchases

    Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 5.0 percent in the fourth quarter, compared with an increase of 3.9 percent in the
third. 


Gross national product

    Real gross national product -- the goods and services produced by the labor and property
supplied by U.S. residents -- increased 3.5 percent in the fourth quarter, compared with an increase of
4.0 percent in the third.  GNP includes, and GDP excludes, net receipts of income from the rest of the
world, which decreased $9.7 billion in the fourth quarter after increasing $1.6 billion in the third; in
the fourth quarter, receipts increased $41.4 billion, and payments increased $51.1 billion.


Current-dollar GDP

    Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
6.2 percent, or $179.9 billion, in the fourth quarter to a level of $11,994.8 billion.  In the third quarter,
current-dollar GDP increased 5.5 percent, or $157.4 billion.


Revisions

    The final estimate of the fourth-quarter increase in real GDP is the same as the preliminary
estimate.  Small upward revisions to exports and to personal consumption expenditures for durable
goods were offset by a downward revision to private inventory investment. 


                                         Advance      Preliminary      Final
                                       (Percent change from preceding quarter)
Real GDP..............................       3.1         3.8            3.8
Current-dollar GDP....................       5.3         6.0            6.2
Gross domestic purchases price index...      2.7         2.8            2.9



                         Corporate Profits

    Profits from current production (corporate profits with inventory valuation and capital
consumption adjustments) increased $150.8 billion in the fourth quarter.  In the third quarter, profits
decreased $55.9 billion; the third-quarter decrease reflected a reduction of $79.7 billion from the
effects of Hurricanes Charley, Frances, Ivan, and Jeanne.  Current-production cash flow (net cash flow
with inventory valuation and capital consumption adjustments) -- the internal funds available to
corporations for investment -- decreased $37.7 billion in the fourth quarter, compared with a decrease
of $1.6 billion in the third.

     Taxes on corporate income increased $42.4 billion in the fourth quarter, in contrast to a
decrease of $17.9 billion in the third.  Profits after tax with inventory valuation and capital
consumption adjustments increased $108.3 billion in the fourth quarter, in contrast to a decrease of 
$38.0 billion in the third.  Dividends increased $110.7 billion, compared with an increase of $10.8
billion; current-production undistributed profits decreased $2.4 billion, compared with a decrease of
$48.8 billion.

    Domestic profits of financial corporations increased $84.1 billion in the fourth quarter, in
contrast to a decrease of $68.7 billion in the third.  

    Domestic profits of nonfinancial corporations increased $66.7 billion in the fourth quarter,
compared with an increase of $9.4 billion in the third.  In the fourth quarter, real gross corporate
product increased, and profits per unit of real product increased.  The increase in unit profits reflected
an increase in unit prices and decreases in both the unit labor and nonlabor costs corporations
incurred.    

    The rest-of-the-world component of profits was unchanged in the fourth quarter, in contrast to
an increase of $3.4 billion in the third.  This measure is calculated as (1) receipts by U.S. residents of
earnings from their foreign affiliates plus dividends received by U.S. residents from unaffiliated
foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign parents plus
dividends paid by U.S. corporations to unaffiliated foreign residents.  Receipts and payments
increased by the same amount.

    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 inventory-accounting and depreciation-accounting practices used for federal
income tax returns.  According to this measure, domestic profits of both financial and nonfinancial
corporations increased.  For nonfinancial corporations, the largest increase was in manufacturing. 
Profits also increased in utilities, in retail trade, and in "other" nonfinancial.  Profits decreased in
information, in transportation and warehousing, and in wholesale trade.

    Profits before tax increased $125.1 billion in the fourth quarter, in contrast to a decrease of
$55.5 billion in the third.  The before-tax measure of profits does not reflect, as does profits from
current production, the capital consumption and inventory valuation adjustments.  These adjustments
convert depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost
basis to the current-cost measures used in the national income and product accounts.  The capital
consumption adjustment increased $37.0 billion in the fourth quarter (from $223.0 billion to $260.0
billion), in contrast to a decrease of $10.3 billion in the third.  The inventory valuation adjustment
decreased $11.3 billion (from -$37.8 billion  to -$49.1 billion), in contrast to an increase of $10.0
billion.



Corporate profits in 2004

    Profits from current production increased 15.7 percent in 2004, compared with an increase of
16.8 percent in 2003.  Domestic profits increased 17.2 percent, compared with an increase of 17.8
percent.  The rest-of-the-world component of profits increased 8.5 percent, compared with an increase
of 12.1 percent.

    Profits tax liability increased 14.6 percent in 2004, compared with an increase of 27.8 percent in
2003.  Profits after tax with inventory valuation and capital consumption adjustments increased 16.0
percent, compared with an increase of 13.8 percent.  Dividends increased 12.3 percent, compared with
an increase of 1.4 percent; current-production undistributed profits increased 19.9 percent, compared
with an increase of 30.0 percent.

    Profits before tax increased 12.7 percent in 2004, compared with an increase of 15.4 percent in
2003.  In 2004, the difference between the increase in profits from current production and the increase
in profits before tax was mainly due to the effects of the Job Creation and Worker Assistance Act of
2002 and the Jobs and Growth Tax Relief Reconciliation Act of 2003, which allowed accelerated
depreciation and lowered before-tax profits.  Profits from current production were not affected by the
acts, because this measure does not depend on the depreciation-accounting practices used for federal
income tax purposes.



    BEA's national, international, regional, and industry estimates; the Survey of Current Business;
and BEA news releases are available without charge on BEA's Web site at www.bea.gov.  By visiting
the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.

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

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

                       *          *          *
                                  

             Next release -- April 28, 2005, at 8:30 A.M. EDT for:
             Gross Domestic Product:  First Quarter 2005 (Advance)
                                




                                    Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2002   2003   2004r  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 04 III 04  IV 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    1.9    3.0    4.4    -.5    1.2   -1.4    1.6    3.4    2.4    2.6     .7    1.9    4.1    7.4    4.2    4.5    3.3    4.0    3.8

Personal consumption expenditures...    3.1    3.3    3.8    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    5.1    4.2
  Durable goods.....................    6.5    7.4    6.7    6.7    -.3    3.1   37.4   -8.5    4.4   14.0   -2.4    -.1   20.6   16.5    3.9    2.2    -.3   17.2    3.9
  Nondurable goods..................    2.6    3.7    4.6     .5    -.1    2.4    4.9    3.8     .8    -.6    5.3    5.0    1.6    6.9    5.1    6.7     .1    4.7    5.9
  Services..........................    2.6    2.2    2.8    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    2.7    3.0    3.4

Gross private domestic investment...   -2.4    4.4   13.2  -13.6   -7.6  -10.5  -22.7   16.8     .3    4.1    -.5    -.8    3.5   22.4   13.9   12.3   19.0    2.4   13.3
  Fixed investment..................   -4.9    5.1   10.3   -2.6   -8.7   -4.5  -10.6   -4.3   -3.5     .2    -.8    2.4   10.9   18.0   10.5    4.5   13.9    8.8   10.5
    Nonresidential..................   -8.9    3.3   10.6   -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   12.5   13.0   14.5
      Structures....................  -17.8   -5.6    1.4   -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    6.9   -1.1    2.1
      Equipment and software........   -5.5    6.4   13.6   -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   14.2   17.5   18.4
    Residential.....................    4.8    8.8    9.7    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   16.5    1.6    3.4
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................   -2.3    1.9    8.6   -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    7.3    6.0    3.2
    Goods...........................   -4.1    2.2    8.8   -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    6.0    9.5    1.9
    Services........................    1.8    1.4    8.0   -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   10.2   -1.8    6.2
  Imports...........................    3.4    4.4    9.9   -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   12.6    4.6   11.4
    Goods...........................    3.7    4.7   10.8   -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   13.0    5.0   14.9
    Services........................    1.9    3.1    5.8   -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   10.6    2.8   -5.2

Government consumption expenditures
 and gross investment...............    4.4    2.8    1.9    5.3    7.9   -1.5    8.5    4.7    4.4    2.1    4.0     .2    7.2     .1    1.6    2.5    2.2     .7     .9
  Federal...........................    7.5    6.6    4.7    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    4.8    1.2
    National defense................    7.7    9.0    7.3    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   10.1    -.6
    Nondefense......................    7.1    2.4    -.5   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    4.4   -5.3    5.3
  State and local...................    2.8     .7     .4    4.0    7.2   -2.3    8.4    2.9     .3    1.7    1.4     .1    -.4    2.2    -.1     .0    1.9   -1.7     .6

Addenda:
  Final sales of domestic product...    1.4    3.1    4.0    1.6    1.0    -.4    3.8     .3    1.8    2.0     .7    2.4    5.2    6.8    3.7    3.3    2.5    5.0    3.4
  Gross domestic purchases..........    2.5    3.3    4.8    -.4     .7    -.8    2.2    4.4    2.8    2.9    2.4    1.7    4.4    6.4    4.7    5.0    4.2    3.9    5.0
  Final sales to domestic
   purchasers.......................    2.1    3.4    4.4    1.5     .5     .2    4.3    1.4    2.2    2.4    2.3    2.2    5.4    5.9    4.2    3.9    3.5    4.9    4.5
  Gross national product (GNP)......    1.7    3.3    4.3   -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    1.9    4.0    3.5
  Disposable personal income........    3.1    2.3    3.5    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    2.8    2.9    8.3

  Current-dollar measures:
    GDP.............................    3.5    4.9    6.6    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    6.6    5.5    6.2
    Final sales of domestic product.    3.1    5.1    6.2    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    5.8    6.5    5.7
    Gross domestic purchases........    4.0    5.4    7.3    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    7.9    5.9    8.1
    Final sales to domestic
     purchasers.....................    3.6    5.5    6.9    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    7.1    6.9    7.6
    GNP.............................    3.4    5.2    6.5    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    5.2    5.6    5.9
    Disposable personal income......    4.6    4.2    5.8    4.6     .8   12.1   -5.0   11.8    5.7     .2    1.5    5.1    5.0    9.9    2.6    5.8    6.0    4.2   11.2
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  See "Explanatory Note" at the end of the tables.

                                                Table 2.--Contributions to Percent Change in Real Gross Domestic Product
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2002   2003   2004r  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 04 III 04  IV 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

    Gross domestic product..........    1.9    3.0    4.4    -.5    1.2   -1.4    1.6    3.4    2.4    2.6     .7    1.9    4.1    7.4    4.2    4.5    3.3    4.0    3.8

Percentage points at annual rates:

  Personal consumption expenditures.   2.14   2.29   2.65   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   1.10   3.57   2.92

    Durable goods...................    .56    .63    .57    .55   -.03    .26   2.81   -.79    .37   1.16   -.21   -.01   1.64   1.38    .33    .19   -.02   1.37    .33
      Motor vehicles and parts......    .22    .22    .12    .36   -.17    .16   2.24  -1.34    .13   1.09   -.50   -.22    .86    .53   -.07   -.23   -.24    .98   -.02
      Furniture and household
       equipment....................    .26    .27    .34    .23    .16    .15    .39    .41    .20    .04    .20    .07    .51    .62    .28    .32    .22    .33    .21
      Other.........................    .08    .15    .11   -.03   -.03   -.06    .18    .14    .04    .03    .08    .14    .27    .23    .12    .10    .00    .06    .13

    Nondurable goods................    .51    .73    .91    .09   -.03    .47    .95    .76    .15   -.12   1.03    .97    .31   1.38   1.01   1.33    .03    .94   1.19
      Food..........................    .18    .37    .47    .24    .05    .09    .18    .26    .29   -.02    .31    .62    .26    .57    .25    .77    .22    .42    .74
      Clothing and shoes............    .12    .12    .19   -.06    .05    .04    .27    .25   -.01   -.12    .30   -.02    .23    .27    .11    .43   -.15    .16    .27
      Gasoline, fuel oil, and other
       energy goods.................    .02    .01   -.01    .05   -.33    .11    .24    .00   -.14   -.01    .21    .01   -.29    .10    .33   -.04   -.29    .05   -.02
      Other.........................    .17    .23    .26   -.14    .21    .23    .27    .24    .01    .03    .21    .37    .12    .43    .32    .17    .25    .30    .20

    Services........................   1.08    .93   1.17    .43    .73    .47    .95   1.36   1.46    .98    .93    .87    .77    .83   1.15   1.39   1.10   1.26   1.41
      Housing.......................    .29    .15    .19    .31    .28    .21    .26    .42    .33    .19    .13    .12    .11    .16    .09    .23    .21    .25    .24
      Household operation...........    .03    .06    .10   -.25   -.35    .03   -.15    .09    .24    .01    .16    .01   -.11    .08    .29    .13   -.03    .05    .21
        Electricity and gas.........    .04    .03    .03   -.24   -.44    .00   -.07    .11    .19    .04    .19   -.04   -.19    .01    .25    .05   -.13   -.01    .18
        Other household operation...   -.01    .04    .07   -.02    .09    .02   -.08   -.02    .05   -.03   -.03    .05    .08    .07    .04    .07    .09    .06    .02
      Transportation................   -.08   -.02    .03    .05   -.06   -.22   -.17    .01   -.04   -.10   -.01    .05   -.07   -.02   -.01    .05    .08    .04    .11
      Medical care..................    .66    .46    .44    .45    .49    .70    .67    .74    .63    .59    .55    .39    .40    .40    .36    .38    .52    .59    .50
      Recreation....................    .07    .09    .09    .15   -.03    .02    .07    .13    .05    .04    .11    .08    .13    .07    .11    .17    .01    .08   -.04
      Other.........................    .11    .20    .32   -.28    .39   -.25    .28   -.03    .24    .25   -.02    .23    .31    .15    .31    .43    .32    .24    .39

  Gross private domestic investment.   -.37    .66   2.00  -2.44  -1.28  -1.76  -3.95   2.34    .05    .61   -.06   -.10    .54   3.16   2.04   1.86   2.85    .40   2.11

    Fixed investment................   -.80    .76   1.56   -.43  -1.51   -.75  -1.81   -.71   -.55    .02   -.13    .35   1.55   2.59   1.57    .69   2.07   1.37   1.65
      Nonresidential................  -1.02    .33   1.05   -.52  -1.76   -.83  -1.63  -1.13  -1.06   -.12   -.33   -.01   1.10   1.50   1.07    .42   1.21   1.27   1.46
        Structures..................   -.57   -.15    .03   -.29   -.14    .19  -1.27   -.59   -.70   -.45   -.17   -.33    .32   -.03    .18   -.19    .16   -.03    .05
        Equipment and software......   -.45    .48   1.01   -.24  -1.62  -1.02   -.35   -.53   -.36    .33   -.16    .32    .78   1.53    .89    .61   1.05   1.30   1.41
          Information processing
           equipment and software...   -.18    .45    .62   -.08   -.93   -.53   -.21   -.29    .04    .38   -.15    .59    .51   1.04    .61    .62    .55    .30    .68
            Computers and peripheral
             equipment..............    .09    .24    .22    .16   -.22   -.26    .19    .18    .03    .25    .08    .25    .30    .39    .25    .06    .22    .18    .41
            Software................   -.10    .07    .18    .01   -.30   -.07   -.19   -.14   -.03    .11   -.16    .12    .07    .28    .14    .24    .13    .10    .30
            Other...................   -.16    .14    .22   -.25   -.42   -.20   -.21   -.33    .04    .02   -.08    .23    .14    .36    .22    .33    .20    .02   -.03
          Industrial equipment......   -.08    .00    .07    .01   -.48   -.27   -.21    .24   -.21    .02   -.05    .09   -.02    .04   -.06    .08    .03    .31    .10
          Transportation equipment..   -.17   -.04    .15   -.22   -.03   -.27    .26   -.39   -.38   -.09    .00   -.31    .25    .14    .14   -.20    .28    .41    .46
          Other equipment...........   -.02    .06    .19    .05   -.19    .05   -.19   -.10    .18    .02    .04   -.06    .03    .31    .20    .10    .20    .28    .16
      Residential...................    .22    .43    .51    .10    .25    .08   -.18    .42    .51    .13    .20    .36    .44   1.09    .50    .27    .86    .09    .19

    Change in private inventories...    .42   -.10    .44  -2.01    .23  -1.02  -2.14   3.05    .60    .59    .07   -.45  -1.01    .57    .47   1.17    .78   -.97    .46
      Farm..........................   -.01    .02    .04    .00   -.28    .09   -.23    .37   -.47    .24    .02    .06   -.07    .06    .19    .06   -.10    .07   -.08
      Nonfarm.......................    .44   -.12    .41  -2.01    .51  -1.11  -1.91   2.69   1.07    .36    .05   -.51   -.94    .52    .29   1.10    .88  -1.04    .54

  Net exports of goods and services.   -.70   -.43   -.59   -.04    .49   -.56   -.66  -1.10   -.46   -.43  -1.69    .14   -.50    .64   -.66   -.76  -1.06   -.10  -1.35

    Exports.........................   -.24    .18    .82   -.59  -1.45  -2.04  -1.11    .43    .99    .29   -.42   -.15   -.15   1.02   1.55    .70    .70    .59    .32
      Goods.........................   -.29    .14    .59   -.43  -1.43  -1.60   -.63   -.13    .87    .19   -.72    .25   -.06    .64   1.00    .60    .41    .64    .14
      Services......................    .05    .04    .23   -.16   -.02   -.44   -.48    .56    .13    .10    .30   -.40   -.10    .39    .56    .10    .30   -.06    .18

    Imports.........................   -.46   -.61  -1.40    .56   1.94   1.48    .45  -1.53  -1.45   -.72  -1.27    .29   -.34   -.39  -2.22  -1.46  -1.77   -.69  -1.67
      Goods.........................   -.42   -.54  -1.27    .43   2.23   1.02    .21  -1.04  -1.59   -.65   -.91    .22   -.58    .00  -1.96  -1.43  -1.52   -.62  -1.80
      Services......................   -.04   -.07   -.14    .12   -.28    .47    .25   -.49    .14   -.06   -.36    .06    .24   -.39   -.26   -.03   -.25   -.07    .13

  Government consumption expenditures
   and gross investment.............    .79    .52    .37    .92   1.35   -.28   1.48    .85    .81    .40    .75    .05   1.35    .03    .31    .48    .41    .13    .16

    Federal.........................    .46    .43    .32    .46    .52    .00    .51    .49    .78    .19    .58    .04   1.40   -.23    .33    .48    .18    .33    .09
      National defense..............    .30    .38    .33    .25    .16    .09    .46    .23    .45    .14    .54   -.11   1.49   -.36    .50    .47    .09    .45   -.03
        Consumption expenditures....    .25    .33    .25    .26    .06    .03    .45    .22    .29    .04    .63   -.16   1.39   -.40    .42    .29    .16    .38   -.20
        Gross investment............    .06    .05    .08   -.01    .10    .06    .02    .00    .16    .11   -.09    .05    .10    .03    .09    .19   -.08    .07    .17
      Nondefense....................    .16    .06   -.01    .20    .36   -.09    .05    .27    .33    .05    .04    .15   -.09    .13   -.18    .00    .10   -.12    .11
       Consumption expenditures.....    .14    .05   -.03    .15    .26    .01    .04    .19    .23    .12    .07    .14   -.23    .23   -.18   -.01   -.01   -.05    .08
       Gross investment.............    .02    .01    .01    .05    .10   -.10    .01    .07    .10   -.07   -.03    .00    .13   -.10    .01    .01    .11   -.07    .03

    State and local.................    .33    .09    .05    .46    .83   -.28    .97    .36    .03    .21    .17    .02   -.05    .26   -.02    .00    .23   -.20    .07
        Consumption expenditures....    .21    .07    .05    .24    .24    .39    .38    .10    .16    .11    .14    .02    .04    .01    .08    .02    .00    .12    .11
        Gross investment............    .12    .02    .00    .22    .59   -.67    .59    .26   -.13    .09    .02    .00   -.09    .25   -.10   -.02    .23   -.32   -.03

Addenda:
    Goods...........................    .41   1.41   2.38  -1.57   -.41  -1.89    .88   1.38    .31   1.54  -1.05   1.39   1.32   5.45   1.90   2.65    .82   2.67   1.99
    Services........................   1.69   1.35   1.54   1.04    .98    .93   1.58   1.94   2.39   1.29   1.71    .54   2.11    .67   1.77   1.76   1.30   1.59   1.71
    Structures......................   -.24    .29    .52    .03    .66   -.44   -.87    .09   -.32   -.23    .08    .00    .67   1.29    .52    .07   1.19   -.25    .14
    Motor vehicle output............    .39    .19    .20   -.69   1.03   -.20    .69    .25    .35    .62    .22   -.46    .11    .84    .11    .30   -.58    .34    .86
    Final sales of computers........    .08    .31    .20    .42   -.13   -.21    .19   -.02    .10    .31    .23    .25    .28    .64    .26    .00    .00    .18    .56
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                            --------------------------------------------          --------------------------------------------  -------------------------
                                       2004r   IV 03     I 04    II 04   III 04    IV 04r    2004r   IV 03     I 04    II 04   III 04    IV 04r    2004r  III 04    IV 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 11,735.0 11,270.9 11,472.6 11,657.5 11,814.9 11,994.8 10,841.9 10,580.7 10,697.5 10,784.7 10,891.0 10,994.3    460.6    106.3    103.3

Personal consumption expenditures.  8,229.9  7,914.9  8,060.2  8,153.8  8,282.5  8,423.3  7,632.5  7,466.8  7,543.0  7,572.4  7,667.8  7,747.0    276.9     95.4     79.2

  Durable goods...................    993.9    971.1    976.3    975.5  1,007.0  1,017.0  1,099.3  1,069.7  1,075.5  1,074.7  1,118.3  1,129.0     68.7     43.6     10.7
    Motor vehicles and parts......    447.8    444.1    438.4    432.5    458.4    461.8    465.9    463.5    456.7    449.6    478.9    478.3     13.8     29.3      -.6
    Furniture and household
     equipment....................    351.3    338.0    345.0    348.6    353.8    357.8    439.4    414.6    425.6    433.3    445.4    453.3     45.9     12.1      7.9
    Other.........................    194.9    189.0    193.0    194.4    194.7    197.4    198.7    194.0    196.9    196.8    198.5    202.5     12.2      1.7      4.0

  Nondurable goods................  2,377.0  2,250.1  2,316.6  2,354.6  2,387.2  2,449.7  2,208.5  2,152.0  2,187.3  2,188.0  2,213.2  2,245.3     96.1     25.2     32.1
    Food..........................  1,150.3  1,091.8  1,120.3  1,137.5  1,157.0  1,186.3  1,043.3  1,008.6  1,028.4  1,034.3  1,045.4  1,065.0     48.2     11.1     19.6
    Clothing and shoes............    326.5    314.4    325.0    322.9    325.2    332.9    352.4    338.2    351.2    346.5    351.6    360.2     22.2      5.1      8.6
    Gasoline, fuel oil, and other
     energy goods.................    244.9    210.7    229.7    243.2    245.4    261.4    197.3    203.3    202.1    195.0    196.3    195.8       .0      1.3      -.5
    Other.........................    655.3    633.1    641.5    651.0    659.6    669.0    617.1    602.1    606.6    613.4    621.4    626.8     27.5      8.0      5.4

  Services........................  4,859.0  4,693.6  4,767.3  4,823.8  4,888.2  4,956.6  4,338.3  4,256.7  4,291.7  4,320.0  4,352.4  4,389.2    118.0     32.4     36.8
    Housing.......................  1,239.0  1,202.8  1,215.4  1,232.7  1,247.3  1,260.5  1,094.9  1,080.3  1,086.0  1,091.5  1,097.9  1,104.1     18.8      6.4      6.2
    Household operation...........    452.0    438.1    445.6    447.6    453.5    461.2    410.6    406.0    409.3    408.4    409.7    415.1     10.4      1.3      5.4
      Electricity and gas.........    177.9    171.2    175.7    174.3    177.4    184.3    150.5    150.6    151.9    148.8    148.5    153.0      3.3      -.3      4.5
      Other household operation...    274.1    266.8    270.0    273.3    276.1    277.0    260.0    255.2    257.1    259.7    261.4    262.0      7.0      1.7       .6
    Transportation................    301.7    296.5    297.8    300.5    302.6    305.9    280.9    276.7    278.1    280.1    281.3    284.1      3.2      1.2      2.8
    Medical care..................  1,391.7  1,334.0  1,356.8  1,379.1  1,404.4  1,426.7  1,228.5  1,198.3  1,207.9  1,221.0  1,236.1  1,249.1     44.2     15.1     13.0
    Recreation....................    335.1    323.4    330.8    333.0    337.4    339.1    299.3    294.1    298.3    298.5    300.6    299.6      9.0      2.1     -1.0
    Other.........................  1,139.5  1,098.8  1,120.9  1,130.9  1,143.1  1,163.2  1,023.1  1,000.3  1,011.2  1,019.4  1,025.7  1,035.9     32.4      6.3     10.2

Gross private domestic investment.  1,927.3  1,758.8  1,819.7  1,920.7  1,947.0  2,021.9  1,843.5  1,714.1  1,764.5  1,842.9  1,853.9  1,912.6    214.7     11.0     58.7

  Fixed investment................  1,884.0  1,755.2  1,783.5  1,861.7  1,915.4  1,975.3  1,794.4  1,702.7  1,721.4  1,778.3  1,816.1  1,861.9    167.1     37.8     45.8
    Nonresidential................  1,220.5  1,146.3  1,158.8  1,198.5  1,238.5  1,286.3  1,228.6  1,161.0  1,173.0  1,207.9  1,245.3  1,288.3    117.8     37.4     43.0
      Structures..................    278.2    268.2    266.0    275.5    281.2    290.0    240.7    242.4    237.7    241.7    241.0    242.3      3.3      -.7      1.3
      Equipment and software......    942.4    878.1    892.8    923.1    957.3    996.3    998.6    925.6    943.7    975.5  1,015.6  1,059.5    119.4     40.1     43.9
        Information processing
         equipment and software...    484.2    454.7    468.5    480.9    486.3    500.9    571.9    526.6    547.0    565.4    575.6    599.5     79.5     10.2     23.9
          Computers and peripheral
           equipment..............    111.0    104.5    104.4    108.8    111.1    119.8    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    182.4    170.5    176.8    180.0    182.9    190.0    192.4    178.5    185.6    189.5    192.7    201.9     21.2      3.2      9.2
          Other...................    190.7    179.7    187.4    192.2    192.2    191.1    204.8    190.4    200.2    206.2    206.8    205.9     25.4       .6      -.9
        Industrial equipment......    150.7    139.5    143.1    145.0    155.2    159.6    144.6    136.8    139.0    139.7    148.5    151.3      7.0      8.8      2.8
        Transportation equipment..    149.6    140.0    134.5    143.2    153.0    167.5    136.8    127.8    122.7    130.0    141.0    153.5     15.2     11.0     12.5
        Other equipment...........    157.9    144.0    146.6    153.9    162.7    168.3    151.1    139.3    142.1    147.5    155.2    159.7     19.9      7.7      4.5
    Residential...................    663.4    609.0    624.6    663.2    677.0    688.9    560.7    535.9    542.5    563.6    565.9    570.6     49.5      2.3      4.7

  Change in private inventories...     43.4      3.5     36.2     59.0     31.6     46.7     45.7      8.6     40.0     61.1     34.5     47.2     46.5    -26.6     12.7
    Farm..........................     -1.1      -.9      1.0     -2.4      -.2     -2.6      3.4      3.5      5.1      3.0      3.8      1.7      3.1       .8     -2.1
    Nonfarm.......................     44.4      4.5     35.2     61.4     31.8     49.3     42.4      4.6     34.5     58.8     30.4     45.9     43.5    -28.4     15.5

Net exports of goods and services.   -606.2   -502.8   -546.8   -591.3   -611.8   -674.8   -583.7   -528.3   -550.1   -580.3   -583.2   -621.1    -65.2     -2.9    -37.9

  Exports.........................  1,175.5  1,099.2  1,134.3  1,167.6  1,189.5  1,210.4  1,120.3  1,076.2  1,095.4  1,114.8  1,131.1  1,140.0     88.5     16.3      8.9
    Goods.........................    820.3    761.3    790.3    812.2    833.4    845.5    785.5    750.6    767.2    778.4    796.3    800.1     63.8     17.9      3.8
    Services......................    355.1    337.9    344.1    355.4    356.1    365.0    334.6    325.4    328.1    336.2    334.6    339.7     24.7     -1.6      5.1

  Imports.........................  1,781.6  1,602.0  1,681.2  1,758.9  1,801.2  1,885.2  1,704.0  1,604.5  1,645.5  1,695.1  1,714.3  1,761.2    153.7     19.2     46.9
    Goods.........................  1,490.8  1,326.4  1,399.2  1,470.1  1,506.9  1,587.2  1,448.2  1,353.2  1,394.1  1,437.4  1,454.9  1,506.3    140.9     17.5     51.4
    Services......................    290.8    275.6    282.0    288.8    294.4    298.1    257.3    251.7    252.4    258.9    260.7    257.3     14.0      1.8     -3.4

Government consumption expenditures
 and gross investment.............  2,183.9  2,100.0  2,139.5  2,174.3  2,197.2  2,224.5  1,946.5  1,923.7  1,935.8  1,946.5  1,949.9  1,954.0     37.1      3.4      4.1

  Federal.........................    809.9    767.5    793.3    804.4    817.4    824.6    721.7    701.2    713.3    718.1    726.6    728.8     32.1      8.5      2.2
    National defense..............    547.9    513.6    534.1    541.2    557.0    559.4    484.9    465.7    477.6    479.9    491.5    490.7     33.1     11.6      -.8
      Consumption expenditures....    477.5    450.2    465.2    473.6    487.1    484.0    415.0    401.4    408.5    412.5    422.1    417.0     24.7      9.6     -5.1
      Gross investment............     70.4     63.4     69.0     67.6     69.8     75.3     70.6     64.6     69.9     67.7     69.8     74.9      9.0      2.1      5.1
    Nondefense....................    262.0    253.9    259.1    263.2    260.4    265.2    236.4    235.2    235.4    237.9    234.7    237.7     -1.2     -3.2      3.0
      Consumption expenditures....    227.0    221.1    225.9    226.6    225.9    229.5    201.4    202.0    201.8    201.5    200.2    202.3     -2.6     -1.3      2.1
      Gross investment............     35.0     32.8     33.2     36.5     34.5     35.7     35.2     33.2     33.6     36.8     34.6     35.6      1.7     -2.2      1.0

  State and local.................  1,373.9  1,332.6  1,346.3  1,369.9  1,379.8  1,399.9  1,224.8  1,222.5  1,222.4  1,228.3  1,223.2  1,225.1      5.0     -5.1      1.9
      Consumption expenditures....  1,099.7  1,066.3  1,079.8  1,091.8  1,105.5  1,121.6    973.7    970.9    971.5    971.5    974.6    977.3      4.7      3.1      2.7
      Gross investment............    274.3    266.2    266.4    278.0    274.3    278.3    251.1    251.6    251.0    257.1    248.6    247.8       .2     -8.5      -.8

Residual..........................    .....    .....    .....    .....    .....    .....    -42.2    -26.7    -31.3    -35.6    -44.5    -57.1    .....    .....    .....

Addenda:
  Final sales of domestic product. 11,691.6 11,267.4 11,436.4 11,598.5 11,783.3 11,948.2 10,794.6 10,569.6 10,655.8 10,722.3 10,854.7 10,945.5    414.7    132.4     90.8
  Gross domestic purchases........ 12,341.1 11,773.7 12,019.4 12,248.8 12,426.6 12,669.7 11,418.8 11,104.3 11,241.9 11,358.1 11,467.4 11,607.6    523.1    109.3    140.2
  Final sales to domestic
   purchasers..................... 12,297.8 11,770.1 11,983.2 12,189.8 12,395.1 12,623.0 11,371.3 11,093.2 11,200.1 11,295.5 11,430.9 11,558.6    477.1    135.4    127.7

  Gross domestic product.......... 11,735.0 11,270.9 11,472.6 11,657.5 11,814.9 11,994.8 10,841.9 10,580.7 10,697.5 10,784.7 10,891.0 10,994.3    460.6    106.3    103.3
  Plus: Income receipts from
   the rest of the world..........    405.8    371.8    373.8    388.0    406.8    454.7    375.5    350.7    349.6    359.8    375.5    416.9     63.6     15.7     41.4
  Less: Income payments to
   the rest of the world..........    361.9    284.6    300.3    351.9    368.6    426.7    334.3    268.0    280.3    325.8    339.9    391.0     75.1     14.1     51.1
  Equals: Gross national product.. 11,778.9 11,358.1 11,546.1 11,693.6 11,853.0 12,022.8 10,883.0 10,663.3 10,766.7 10,818.7 10,926.5 11,020.1    449.1    107.8     93.6

  Net domestic product............ 10,327.6  9,896.7 10,117.6 10,282.3 10,316.9 10,593.6  9,452.8  9,228.4  9,344.1  9,424.1  9,426.4  9,616.7    407.0      2.3    190.3
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2002   2003   2004r  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 04 III 04  IV 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    1.7    1.8    2.2    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    1.4    2.3

Personal consumption expenditures...    1.4    1.9    2.2    3.3    2.6     .6     .6     .9    2.9    2.0    1.4    3.2     .7    1.6    1.2    3.3    3.1    1.3    2.7
  Durable goods.....................   -2.7   -3.4   -2.0   -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   -3.1     .1
  Nondurable goods..................     .6    2.0    3.3    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     .9    4.7
  Services..........................    2.7    3.0    2.5    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    2.1    2.3    2.2

Gross private domestic investment...     .2    1.1    2.5     .0    1.5    2.1     .2   -1.0    -.1    -.5    2.6    1.4    -.1    1.2    2.7    2.1    4.4    2.9    2.4
  Fixed investment..................     .2    1.2    2.5    -.3    1.8    2.2     .1   -1.1    -.1    -.4    2.7    1.9    -.3    1.2    2.8    2.0    4.3    3.0    2.4
    Nonresidential..................    -.8    -.4     .8   -2.3     .6     .3   -1.0   -1.3   -1.1   -1.3     .6    -.5   -1.3     .3    1.2     .3    1.7     .9    1.6
      Structures....................    2.4    2.1    4.9    6.0    6.5    6.6    2.1     .0    2.1    1.6    3.0    3.9     .0    1.3    1.4    4.8    7.6    9.8   10.9
      Equipment and software........   -1.9   -1.2    -.4   -5.1   -1.5   -2.0   -2.2   -1.7   -2.2   -2.2    -.1   -1.9   -1.7     .0    1.2   -1.1     .1   -1.6    -.9
    Residential.....................    2.5    4.4    5.7    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    9.1    6.8    3.8
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    -.4    2.1    3.5     .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    1.6    3.9
    Goods...........................    -.7    2.0    3.8    -.1   -1.6   -2.6   -3.8   -1.4    2.2    3.3     .5    3.5    1.6    -.6    4.2    6.4    5.3    1.2    3.9
    Services........................     .4    2.4    2.8     .6    -.7    -.6   -2.8    -.6    4.8    2.4     .3    5.4    -.6    4.0     .9    4.0    3.2    2.7    3.9
  Imports...........................   -1.2    3.4    4.9   -3.0   -5.9   -5.3  -10.0   -1.9   10.5    3.4     .5   11.3   -4.3    2.6     .9    9.6    6.4    5.1    7.7
    Goods...........................   -1.8    2.9    4.9   -3.8   -6.6   -6.5  -11.3   -2.0   10.8    2.6     .4   12.0   -6.7    2.4     .4    9.9    7.8    5.2    7.1
    Services........................    1.7    5.9    4.9    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    -.5    5.0   10.9

Government consumption expenditures
 and gross investment...............    2.7    3.2    3.2    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    4.3    3.6    4.2
  Federal...........................    3.3    3.6    2.9    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    3.0    1.7    2.3
    National defense................    3.4    4.2    2.8    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    1.9    2.4
    Nondefense......................    3.1    2.6    3.0   -1.0    1.8    1.6    3.4    8.0    1.1    -.2     .5    8.2    1.4    1.0     .3    8.3    1.9    1.3    2.2
  State and local...................    2.4    3.0    3.4    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    5.2    4.7    5.3

Addenda:
  Final sales of domestic product...    1.7    1.8    2.2    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    1.4    2.3
  Gross domestic purchases..........    1.5    2.0    2.4    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    1.9    2.9
  Final sales to domestic
   purchasers.......................    1.5    2.0    2.4    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    1.9    2.9
  Gross national product (GNP)......    1.6    1.8    2.2    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    1.4    2.3

  Implicit price deflators:
    GDP.............................    1.7    1.8    2.1    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    1.4    2.3
    Gross domestic purchases........    1.5    2.0    2.4    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    2.0    2.9
    GNP.............................    1.6    1.8    2.1    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    1.5    2.3
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2002       2003       2004r     IV 03       I 04      II 04     III 04      IV 04r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    102.626    105.749    110.440    107.780    108.969    109.858    110.941    111.993

Personal consumption expenditures..........    105.698    109.143    113.253    110.794    111.925    112.360    113.776    114.951
  Durable goods............................    111.150    119.378    127.338    123.902    124.572    124.482    129.529    130.768
  Nondurable goods.........................    104.630    108.481    113.417    110.517    112.331    112.367    113.659    115.310
  Services.................................    105.085    107.418    110.423    108.346    109.237    109.955    110.782    111.717

Gross private domestic investment..........     89.928     93.852    106.223     98.771    101.672    106.191    106.823    110.207
  Fixed investment.........................     92.253     96.924    106.877    101.412    102.529    105.913    108.170    110.897
    Nonresidential.........................     87.302     90.157     99.720     94.235     95.204     98.041    101.075    104.560
      Structures...........................     80.346     75.810     76.844     77.406     75.886     77.171     76.958     77.359
      Equipment and software...............     89.947     95.679    108.670    100.735    102.699    106.157    110.524    115.299
    Residential............................    105.178    114.392    125.457    119.916    121.400    126.122    126.628    127.680
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     92.343     94.116    102.195     98.170     99.924    101.690    103.176    103.991

Imports of goods and services..............    100.585    105.048    115.468    108.725    111.504    114.862    116.167    119.340

Government consumption expenditures and
 gross investment..........................    107.918    110.906    113.066    111.738    112.443    113.062    113.259    113.500
  Federal..................................    111.725    119.140    124.695    121.154    123.249    124.068    125.539    125.922
  State and local..........................    105.999    106.739    107.171    106.968    106.965    107.482    107.033    107.202

Addenda:
  Final sales of domestic product..........    103.102    106.346    110.595    108.290    109.173    109.854    111.211    112.141
  Gross domestic purchases.................    103.414    106.858    111.988    108.904    110.253    111.393    112.465    113.840
  Final sales to domestic purchasers.......    103.876    107.438    112.143    109.401    110.455    111.396    112.731    113.991
  Gross national product...................    102.494    105.865    110.421    108.192    109.241    109.769    110.863    111.812
-----------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2002       2003       2004r     IV 03       I 04      II 04     III 04      IV 04r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    104.097    106.003    108.298    106.586    107.314    108.169    108.551    109.159

Personal consumption expenditures
 (PCE).....................................    103.548    105.511    107.824    106.005    106.860    107.683    108.021    108.734
  Durable goods............................     95.475     92.244     90.378     90.747     90.741     90.725     90.008     90.039
  Nondurable goods.........................    102.097    104.154    107.626    104.564    105.914    107.616    107.869    109.106
  Services.................................    106.083    109.237    111.999    110.266    111.085    111.667    112.314    112.932

Gross private domestic investment..........    101.221    102.304    104.898    102.968    103.514    104.644    105.405    106.029
  Fixed investment.........................    101.232    102.435    104.978    103.101    103.618    104.709    105.482    106.101
    Nonresidential.........................     98.909     98.546     99.328     98.729     98.793     99.220     99.449     99.850
      Structures...........................    107.908    110.176    115.578    110.633    111.926    113.984    116.677    119.726
      Equipment and software...............     95.868     94.754     94.382     94.862     94.611     94.626     94.256     94.034
    Residential............................    107.246    111.951    118.338    113.675    115.179    117.710    119.674    120.787
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     99.275    101.395    104.919    102.146    103.565    104.746    105.175    106.189

Imports of goods and services..............     96.326     99.615    104.508     99.837    102.163    103.760    105.066    107.042

Government consumption expenditures and
 gross investment..........................    105.313    108.702    112.187    109.167    110.522    111.703    112.682    113.841
  Federal..................................    105.288    109.081    112.213    109.447    111.203    112.020    112.491    113.138
  State and local..........................    105.317    108.485    112.180    109.007    110.131    111.524    112.802    114.265

Addenda:
  PCE excluding food and energy............    103.707    105.072    106.643    105.527    106.081    106.523    106.753    107.217
  Market-based PCE\1\......................    103.113    105.040    107.427    105.496    106.334    107.292    107.674    108.406
  Market-based PCE excluding food
   and energy\1\...........................    103.186    104.388    105.905    104.790    105.261    105.798    106.060    106.500
  Final sales of domestic product..........    104.100    106.025    108.310    106.608    107.332    108.178    108.561    109.168
  Gross domestic purchases.................    103.489    105.571    108.131    106.086    106.980    107.913    108.429    109.203
  Final sales to domestic purchasers.......    103.491    105.592    108.143    106.107    106.997    107.923    108.440    109.214
  Gross national product...................    104.087    105.997    108.295    106.579    107.308    108.164    108.549    109.158

  Implicit price deflators:
    Gross domestic product.................    104.092    105.998    108.237    106.523    107.246    108.093    108.482    109.100
    Final sales of domestic product........    104.100    106.025    108.310    106.601    107.325    108.172    108.555    109.161
    Gross domestic purchases...............    103.484    105.566    108.077    106.028    106.916    107.842    108.364    109.149
    Final sales to domestic purchasers.....    103.491    105.592    108.148    106.102    106.992    107.917    108.435    109.208
    Gross national product.................    104.082    105.992    108.232    106.516    107.240    108.087    108.479    109.099
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  1. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.  Percentage changes for these series are
included in the addenda to table 8 and appendix table A.
  See "Explanatory Note" at the end of the tables.

                                               Table 7.--Real Gross Domestic Product: Percent Change from Preceding Year
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           1989    1990    1991    1992    1993    1994    1995    1996    1997    1998    1999    2000    2001    2002    2003    2004r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     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     4.4

Personal consumption expenditures......     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     3.8
  Durable goods........................     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     6.7
  Nondurable goods.....................     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     4.6
  Services.............................     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     2.8

Gross private domestic investment......     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    13.2
  Fixed investment.....................     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    10.3
    Nonresidential.....................     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    10.6
      Structures.......................     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     1.4
      Equipment and software...........     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    13.6
    Residential........................    -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     9.7
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................    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     8.6
    Goods..............................    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     8.8
    Services...........................    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     8.0
  Imports..............................     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     9.9
    Goods..............................     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    10.8
    Services...........................     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     5.8

Government consumption expenditures
 and gross investment..................     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     1.9
  Federal..............................     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     4.7
    National defense...................     -.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     7.3
    Nondefense.........................     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     -.5
  State and local......................     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      .4

Addenda:
  Final sales of domestic product......     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     4.0
  Gross domestic purchases.............     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     4.8
  Final sales to domestic purchasers...     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     4.4
  Gross national product...............     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     4.3
  Real disposable personal income......     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     3.5

  Price indexes:
    Gross domestic purchases...........     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     2.4
    Gross domestic purchases excluding
     food and energy...................     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     1.9
    GDP................................     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     2.2
    GDP excluding food and energy......     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     1.9
    Personal consumption expenditures..     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     2.2
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           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 04  III 04   IV 04r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     1.9      .6      .4      .2     1.2     1.5     2.5     2.3     1.9     2.3     3.5     4.4     5.0     4.8     4.0     3.9

Personal consumption expenditures
 (PCE).................................     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     3.6     3.8
  Durable goods........................      .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     5.5     5.5
  Nondurable goods.....................     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     4.7     4.1     4.3
  Services.............................     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     2.7     2.9     3.1

Gross private domestic investment......     -.5    -8.5    -8.6   -13.8    -7.1    -5.1    -1.5     5.0      .7     1.5     5.7     9.4    12.8    16.8    11.7    11.6
  Fixed investment.....................     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    11.6     9.4     9.4
    Nonresidential.....................     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    10.8    10.1    11.0
      Structures.......................     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     1.3     -.1
      Equipment and software...........     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    13.9    12.9    14.5
    Residential........................    -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    13.2     8.0     6.5
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................     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    10.8     9.4     5.9
    Goods..............................     4.8    -3.2   -12.2   -13.0   -12.2    -5.0     1.2      .8     2.3    -1.2      .5     7.1     8.5    10.3    10.1     6.6
    Services...........................      .1    -2.0    -4.0    -8.9    -3.1    -1.8     2.7     9.8     1.0     -.9     1.5     3.8     8.3    11.9     7.8     4.4
  Imports..............................     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    10.7    11.1     9.8
    Goods..............................     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    10.8    12.1    11.3
    Services...........................     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    10.0     6.3     2.2

Government consumption expenditures
 and gross investment..................     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     1.6     1.8     1.6
  Federal..............................     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     4.8     3.9
    National defense...................     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     8.5     5.4
    Nondefense.........................     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    -2.2     1.0
  State and local......................     1.9     3.7     2.8     4.2     4.0     2.2     3.3     1.6      .9      .7      .8      .4      .4     1.0      .0      .2

Addenda:
  Final sales of domestic product......     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     4.1     3.6     3.6
  Gross domestic purchases.............     2.3      .7      .4      .4     1.6     2.1     3.1     3.1     2.4     2.8     3.7     4.3     5.1     5.1     4.5     4.5
  Final sales to domestic purchasers...     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     4.4     4.1     4.2
  Gross national product...............     1.9      .7      .2      .4     1.0     1.2     2.6     2.0     2.0     2.6     3.7     4.8     5.3     4.7     3.8     3.3
  Real disposable personal income......     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     3.7     2.4     4.1

  Price indexes:
    Gross domestic purchases...........     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     2.6     2.9
    Gross domestic purchases excluding
     food and energy...................     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     2.1     2.2
    GDP................................     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     2.3     2.4
    GDP excluding food and energy......     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     2.1     2.2
    PCE................................     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     2.2     2.6
    PCE excluding food and energy......     1.6     1.8     2.0     2.2     1.8     1.8     1.9     1.5     1.6     1.4     1.1     1.2     1.4     1.5     1.5     1.6
    Market-based PCE\1\................     2.2     2.3     1.9     1.3      .8      .9     1.2     1.7     2.3     1.8     1.8     1.6     1.7     2.4     2.3     2.8
    Market-based PCE excluding food
     and energy\1\.....................     1.5     1.7     1.8     1.8     1.5     1.6     1.5     1.4     1.4     1.2     1.1     1.0     1.3     1.5     1.4     1.6
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  1. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.

                     Table 9.--Relation of Gross Domestic Product, Gross National Product, and National Income
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2002       2003       2004r     IV 03       I 04      II 04     III 04      IV 04r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   10,487.0   11,004.0   11,735.0   11,270.9   11,472.6   11,657.5   11,814.9   11,994.8

Plus: Income receipts from the rest of the
 world.....................................      301.8      329.0      405.8      371.8      373.8      388.0      406.8      454.7
Less: Income payments to the rest of the
 world.....................................      274.7      273.9      361.9      284.6      300.3      351.9      368.6      426.7

Equals: Gross national product.............   10,514.1   11,059.2   11,778.9   11,358.1   11,546.1   11,693.6   11,853.0   12,022.8

Less: Consumption of fixed capital.........    1,303.9    1,353.9    1,407.3    1,374.2    1,355.0    1,375.2    1,497.9    1,401.2
Less: Statistical discrepancy..............      -15.3       25.6       50.9       12.8       63.0       56.4       60.4       24.0

Equals: National income....................    9,225.4    9,679.6   10,320.6    9,971.1   10,128.1   10,262.0   10,294.7   10,597.6
  Compensation of employees................    6,069.5    6,289.0    6,632.0    6,406.7    6,489.4    6,578.5    6,687.4    6,772.5
    Wage and salary accruals...............    4,976.3    5,103.6    5,355.7    5,188.9    5,240.7    5,311.4    5,403.0    5,467.8
    Supplements to wages and salaries......    1,093.2    1,185.5    1,276.3    1,217.8    1,248.8    1,267.2    1,284.4    1,304.7
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      769.6      834.1      902.8      864.7      872.1      901.4      902.9      934.9
  Rental income of persons with capital
   consumption adjustment..................      170.9      153.8      165.1      167.1      172.8      172.6      153.8      161.3
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................      874.6    1,021.1    1,181.6    1,129.1    1,165.6    1,173.9    1,118.0    1,268.8
  Net interest and miscellaneous payments..      532.9      543.0      549.5      545.3      554.5      548.5      546.7      548.2
  Taxes on production and imports less
   subsidies...............................      724.4      751.3      800.6      769.4      782.9      796.3      803.5      819.9
  Business current transfer payments.......       80.9       77.7       82.1       80.1       82.7       83.5       76.0       86.3
  Current surplus of government
   enterprises.............................        2.8        9.5        6.9        8.7        8.1        7.4        6.5        5.7

Addendum:
  Gross domestic income....................   10,502.3   10,978.5   11,684.0   11,258.1   11,409.6   11,601.1   11,754.5   11,970.9
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2002       2003       2004r     IV 03       I 04      II 04     III 04      IV 04r
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    8,878.9    9,161.8    9,673.0    9,330.0    9,445.0    9,592.7    9,700.4    9,953.8

  Compensation of employees, received......    6,069.5    6,289.0    6,632.0    6,406.7    6,487.9    6,580.0    6,687.4    6,772.5
    Wage and salary disbursements..........    4,976.3    5,103.6    5,355.7    5,188.9    5,239.2    5,312.8    5,403.0    5,467.8
    Supplements to wages and salaries......    1,093.2    1,185.5    1,276.3    1,217.8    1,248.8    1,267.2    1,284.4    1,304.7
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      769.6      834.1      902.8      864.7      872.1      901.4      902.9      934.9
    Farm...................................        9.7       21.8       18.2       24.7       17.9       18.9       13.6       22.4
    Nonfarm................................      759.9      812.3      884.6      840.0      854.2      882.5      889.3      912.5
  Rental income of persons with capital
   consumption adjustment..................      170.9      153.8      165.1      167.1      172.8      172.6      153.8      161.3
  Personal income receipts on assets.......    1,334.6    1,322.7    1,387.3    1,325.8    1,337.1    1,352.3    1,367.8    1,491.9
    Personal interest income...............      946.7      929.9      946.2      932.0      936.2      941.7      946.5      960.5
    Personal dividend income...............      387.9      392.8      441.1      393.8      400.9      410.6      421.3      531.4
  Personal current transfer receipts.......    1,282.7    1,335.4    1,405.9    1,350.7    1,379.0    1,400.4    1,415.4    1,428.9

  Less: Contributions for government
   social insurance........................      748.3      773.2      820.2      785.0      803.9      814.0      826.9      835.7

Less: Personal current taxes...............    1,051.2    1,001.9    1,038.9    1,009.4    1,006.6    1,030.6    1,048.9    1,069.5

Equals: Disposable personal income.........    7,827.7    8,159.9    8,634.0    8,320.5    8,438.4    8,562.1    8,651.5    8,884.2

Less: Personal outlays.....................    7,668.5    8,049.3    8,531.9    8,209.4    8,351.6    8,448.7    8,588.1    8,739.3

Equals: Personal saving....................      159.2      110.6      102.1      111.1       86.8      113.4       63.4      145.0

  Personal saving as a percentage of
   disposable personal income..............        2.0        1.4        1.2        1.3        1.0        1.3         .7        1.6

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    7,559.5    7,733.8    8,007.3    7,849.6    7,897.0    7,951.5    8,009.5    8,170.9
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  1. Personal income is also equal to national income less corporate
profits with inventory valuation and capital consumption adjustments,
taxes on production and imports less subsidies, contributions for
government social insurance, net interest and miscellaneous payments,
business current transfer payments, current surplus of government
enterprises, and wage accruals less disbursements, plus personal
income receipts on assets, and personal current transfer receipts.
  2. Equals disposable personal income deflated by the implicit price
deflator for personal consumption expenditures.

                                                   Table 11.--Corporate Profits: Level and Percent Change
-------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Billions of dollars                                 Percent change from preceding period
                                     ----------------------------------------------------------------  ------------------------------------------------------
                                                                       Seasonally adjusted                                       Quarterly        Quarter one
                                                                         at annual rates                                           rates             year ago
                                                              ---------------------------------------                 ------------------------------- -------
                                         2002    2003    2004   IV 03    I 04   II 04  III 04   IV 04    2003    2004    I 04   II 04  III 04   IV 04   IV 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
 valuation and capital consumption
 adjustments.........................   874.6 1,021.1 1,181.6 1,129.1 1,165.6 1,173.9 1,118.0 1,268.8    16.8    15.7     3.2      .7    -4.8    13.5    12.4

Less: Taxes on corporate income......   183.8   234.9   269.2   252.3   256.5   271.2   253.3   295.7    27.8    14.6     1.6     5.7    -6.6    16.8    17.2

Equals: Profits after tax with
 inventory valuation and capital
 consumption adjustments.............   690.7   786.2   912.4   876.8   909.1   902.7   864.7   973.0    13.8    16.0     3.7     -.7    -4.2    12.5    11.0
  Net dividends......................   390.0   395.3   443.9   396.4   403.4   413.2   424.0   534.7     1.4    12.3     1.8     2.4     2.6    26.1    34.9
  Undistributed profits with
   inventory valuation and capital
   consumption adjustments...........   300.7   390.9   468.5   480.4   505.7   489.5   440.7   438.3    30.0    19.9     5.3    -3.2   -10.0     -.5    -8.8

Cash flow:
  Net cash flow with inventory
   valuation and capital consumption
   adjustments....................... 1,058.5 1,173.4 1,264.6 1,273.2 1,279.1 1,273.4 1,271.8 1,234.1    10.9     7.8      .5     -.4     -.1    -3.0    -3.1
    Undistributed profits with
     inventory valuation and capital
     consumption adjustments.........   300.7   390.9   468.5   480.4   505.7   489.5   440.7   438.3    30.0    19.9     5.3    -3.2   -10.0     -.5    -8.8
    Consumption of fixed capital.....   757.8   782.5   796.1   792.9   773.4   783.9   831.2   795.8     3.3     1.7    -2.5     1.4     6.0    -4.3      .4

  Less: Inventory valuation
   adjustment........................    -1.2   -14.1   -42.9   -24.3   -37.0   -47.8   -37.8   -49.1   .....   .....   .....   .....   .....   .....   .....

  Equals: Net cash flow.............. 1,059.8 1,187.5 1,307.5 1,297.6 1,316.1 1,321.2 1,309.6 1,283.2    12.1    10.1     1.4      .4     -.9    -2.0    -1.1

Addenda:
  Profits before tax (without
   inventory valuation and capital
   consumption adjustments)..........   758.0   874.5   985.3   966.2   962.4   988.3   932.8 1,057.9    15.4    12.7     -.4     2.7    -5.6    13.4     9.5
  Profits after tax (without
   inventory valuation and capital
   consumption adjustments)..........   574.2   639.6   716.2   713.9   705.9   717.1   679.5   762.1    11.4    12.0    -1.1     1.6    -5.3    12.2     6.8
  Inventory valuation adjustment.....    -1.2   -14.1   -42.9   -24.3   -37.0   -47.8   -37.8   -49.1   .....   .....   .....   .....   .....   .....   .....
  Capital consumption adjustment.....   117.8   160.8   239.1   187.2   240.2   233.3   223.0   260.0    36.5    48.7    28.3    -2.9    -4.4    16.6    38.9
-------------------------------------------------------------------------------------------------------------------------------------------------------------

                                      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
                                                                      ---------------------------------------  ----------------------------------------------
                                                 2002    2003    2004   IV 03    I 04   II 04  III 04   IV 04    2003    2004    I 04   II 04  III 04   IV 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------
    Corporate profits with inventory
     valuation and capital consumption
     adjustments.............................   874.6 1,021.1 1,181.6 1,129.1 1,165.6 1,173.9 1,118.0 1,268.8   146.5   160.5    36.5     8.3   -55.9   150.8

Domestic industries..........................   716.8   844.2   989.6   913.3   960.3   988.6   929.3 1,080.1   127.4   145.4    47.0    28.3   -59.3   150.8
  Financial..................................   298.4   327.8   336.4   335.9   355.7   347.8   279.1   363.2    29.4     8.6    19.8    -7.9   -68.7    84.1
  Nonfinancial...............................   418.4   516.4   653.1   577.3   604.6   640.8   650.2   716.9    98.0   136.7    27.3    36.2     9.4    66.7

Rest of the world............................   157.8   176.9   192.0   215.8   205.3   185.3   188.7   188.7    19.1    15.1   -10.5   -20.0     3.4      .0
  Receipts from the rest of the world........   206.0   250.7   315.4   293.4   299.0   305.6   313.1   343.9    44.7    64.7     5.6     6.6     7.5    30.8
  Less: Payments to the rest of the world....    48.2    73.8   123.4    77.5    93.7   120.3   124.5   155.3    25.6    49.6    16.2    26.6     4.2    30.8

    Corporate profits with inventory
     valuation adjustment....................   756.8   860.4   942.4   941.9   925.4   940.6   895.0 1,008.8   103.6    82.0   -16.5    15.2   -45.6   113.8

Domestic industries..........................   599.0   683.4   750.4   726.1   720.0   755.2   706.3   820.1    84.4    67.0    -6.1    35.2   -48.9   113.8
  Financial..................................   276.2   299.8   294.0   305.3   313.7   306.4   237.6   318.2    23.6    -5.8     8.4    -7.3   -68.8    80.6
    Federal Reserve banks....................    22.9    19.2    19.1    17.6    18.2    18.1    19.0    21.1    -3.7     -.1      .6     -.1      .9     2.1
    Other financial..........................   253.3   280.6   274.9   287.8   295.5   288.3   218.6   297.1    27.3    -5.7     7.7    -7.2   -69.7    78.5

  Nonfinancial...............................   322.8   383.6   456.4   420.7   406.4   448.8   468.7   501.9    60.8    72.8   -14.3    42.4    19.9    33.2
    Utilities................................    11.4    18.8    23.3    24.3    23.2    21.5    21.1    27.5     7.4     4.5    -1.1    -1.7     -.4     6.4
    Manufacturing............................    50.7    67.3   105.9    93.4    81.5    94.8   105.0   142.4    16.6    38.6   -11.9    13.3    10.2    37.4
      Durable goods..........................    -8.3    -3.5    23.9     9.3     2.8    14.9    29.8    48.1     4.8    27.4    -6.5    12.1    14.9    18.3
        Fabricated metal products............     9.3    10.1    13.6    13.2    11.8    12.1    13.1    17.2      .8     3.5    -1.4      .3     1.0     4.1
        Machinery............................     1.6     -.5     3.4     1.1     2.2     3.6     6.7     1.1    -2.1     3.9     1.1     1.4     3.1    -5.6
        Computer and electronic products.....   -32.9   -15.4   -13.8   -14.0   -17.2   -15.9   -10.5   -11.5    17.5     1.6    -3.2     1.3     5.4    -1.0
        Electrical equipment, appliances,
         and components......................     -.2    -3.2    -2.7    -4.4    -8.1    -1.6    -5.5     4.4    -3.0      .5    -3.7     6.5    -3.9     9.9
        Motor vehicles, bodies and trailers,
         and parts...........................    -6.0    -6.2     2.7    -5.0     -.5    -1.2     5.0     7.4     -.2     8.9     4.5     -.7     6.2     2.4
        Other durable goods..................    19.8    11.8    20.8    18.4    14.6    18.0    21.2    29.6    -8.0     9.0    -3.8     3.4     3.2     8.4

      Nondurable goods.......................    58.9    70.7    82.0    84.1    78.6    79.9    75.2    94.4    11.8    11.3    -5.5     1.3    -4.7    19.2
        Food and beverage and tobacco
         products............................    24.1    27.7    26.9    34.2    31.1    27.9    26.4    22.4     3.6     -.8    -3.1    -3.2    -1.5    -4.0
        Petroleum and coal products..........     4.0    14.8    28.6    18.7    24.5    27.3    20.0    42.5    10.8    13.8     5.8     2.8    -7.3    22.5
        Chemical products....................    17.1    21.2    12.7    21.3    14.1    13.7    14.8     8.4     4.1    -8.5    -7.2     -.4     1.1    -6.4
        Other nondurable goods...............    13.6     7.1    13.8     9.8     8.9    11.0    14.0    21.1    -6.5     6.7     -.9     2.1     3.0     7.1

    Wholesale trade..........................    51.0    47.9    54.6    50.1    46.0    52.2    61.1    59.0    -3.1     6.7    -4.1     6.2     8.9    -2.1
    Retail trade.............................    78.1    77.7    72.2    74.7    80.0    73.1    64.7    70.8     -.4    -5.5     5.3    -6.9    -8.4     6.1
    Transportation and warehousing...........    -1.3    10.5     9.7    12.4    11.7    15.5     7.3     4.5    11.8     -.8     -.7     3.8    -8.2    -2.8
    Information..............................   -11.2     -.7     9.5    -1.0    -6.6    16.5    21.6     6.6    10.5    10.2    -5.6    23.1     5.1   -15.0
    Other nonfinancial.......................   144.2   162.1   181.2   166.8   170.7   175.1   187.9   191.2    17.9    19.1     3.9     4.4    12.8     3.3

Rest of the world............................   157.8   176.9   192.0   215.8   205.3   185.3   188.7   188.7    19.1    15.1   -10.5   -20.0     3.4      .0
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2002       2003       2004      IV 03       I 04      II 04     III 04r     IV 04
-----------------------------------------------------------------------------------------------------------------------------------
                                                                             Billions of dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business....................    5,377.7    5,606.8    6,011.0    5,767.5    5,839.4    5,955.5    6,058.2    6,190.8

Consumption of fixed capital...............      655.7      676.4      692.6      684.3      671.8      680.9      726.8      691.0

Net value added............................    4,722.0    4,930.5    5,318.4    5,083.3    5,167.6    5,274.7    5,331.4    5,499.8

  Compensation of employees................    3,601.3    3,696.2    3,913.0    3,771.0    3,818.1    3,878.6    3,949.7    4,005.7
    Wage and salary accruals...............    2,971.0    3,006.9    3,167.4    3,062.8    3,089.9    3,138.5    3,199.1    3,241.8
    Supplements to wages and salaries......      630.3      689.3      745.7      708.3      728.1      740.1      750.5      763.9
  Taxes on production and imports less
   subsidies...............................      465.1      483.4      511.4      495.0      501.1      508.4      511.7      524.4
  Net operating surplus....................      655.5      750.8      893.9      817.2      848.5      887.6      870.0      969.7
    Net interest and miscellaneous
     payments..............................      181.7      170.8      177.5      172.1      174.8      177.2      177.3      180.5
    Business current transfer payments.....       55.5       63.5       63.3       67.8       69.0       69.6       42.5       72.2
    Corporate profits with inventory
     valuation and capital consumption
     adjustments...........................      418.4      516.4      653.1      577.3      604.6      640.8      650.2      716.9
      Taxes on corporate income............       89.0      130.0      165.8      146.8      147.7      164.9      167.5      183.3
      Profits after tax with inventory
       valuation and capital consumption
       adjustments.........................      329.4      386.4      487.3      430.5      456.9      475.9      482.7      533.6
        Net dividends......................      254.9      275.4      303.9      273.6      270.6      265.5      278.7      400.8
        Undistributed profits with
         inventory valuation and capital
         consumption adjustments...........       74.5      111.0      183.4      156.9      186.2      210.5      204.0      132.9

Addenda:
  Profits before tax (without inventory
   valuation and capital consumption
   adjustments)............................      324.1      397.7      499.4      445.0      443.4      496.5      506.5      551.0
  Profits after tax (without inventory
   valuation and capital consumption
   adjustments)............................      235.1      267.7      333.5      298.2      295.6      331.7      338.9      367.8
  Inventory valuation adjustment...........       -1.2      -14.1      -42.9      -24.3      -37.0      -47.8      -37.8      -49.1
  Capital consumption adjustment...........       95.6      132.9      196.7      156.6      198.3      192.0      181.5      215.0
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business\1\.................    5,275.9    5,423.0    5,713.6    5,552.0    5,598.7    5,657.4    5,752.2    5,846.0

Consumption of fixed capital\2\............      628.0      647.2      668.3      655.1      654.1      657.2      697.3      664.7
Net value added\3\.........................    4,647.9    4,775.8    5,045.2    4,897.0    4,944.6    5,000.2    5,054.8    5,181.3
                                           ----------------------------------------------------------------------------------------
                                                                                   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\...      1.019      1.034      1.052      1.039      1.043      1.053      1.053      1.059

  Compensation of employees (unit labor
   cost)...................................       .683       .682       .685       .679       .682       .686       .687       .685

  Unit nonlabor cost.......................       .257       .258       .253       .255       .253       .253       .253       .251
    Consumption of fixed capital...........       .124       .125       .121       .123       .120       .120       .126       .118
    Taxes on production and imports less
     subsidies plus business current
     transfer payments.....................       .099       .101       .101       .101       .102       .102       .096       .102
    Net interest and miscellaneous payments       .034       .032       .031       .031       .031       .031       .031       .031

  Corporate profits with inventory valuation
   and capital consumption adjustments (unit
   profits from current production)........       .079       .095       .114       .104       .108       .113       .113       .123
    Taxes on corporate income..............       .017       .024       .029       .026       .026       .029       .029       .031
    Profits after tax with inventory
     valuation and capital consumption
     adjustments...........................       .062       .071       .085       .078       .082       .084       .084       .091
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the third
quarter of 2004.
  1. Effective December 22, 2004, chained-dollar gross value added of
nonfinancial corporate business was revised beginning with 1929.  The
current-dollar gross value added is 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 of
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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2002   2003   2004r  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 04 III 04  IV 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................    1.9    3.0    4.4    -.5    1.2   -1.4    1.6    3.4    2.4    2.6     .7    1.9    4.1    7.4    4.2    4.5    3.3    4.0    3.8

  Goods.............................    1.2    4.3    7.4   -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    2.5    8.3    6.1
  Services..........................    3.0    2.3    2.7    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    2.3    2.8    3.0
  Structures........................   -2.4    3.0    5.3     .4    7.0   -4.3   -8.5     .9   -3.3   -2.4     .9     .0    7.3   13.9    5.4     .7   12.7   -2.5    1.4

  Motor vehicle output..............   11.6    4.2    5.6  -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  -15.2   10.4   27.6
  GDP excluding motor vehicle
   output...........................    1.5    3.0    4.4     .2     .2   -1.2     .9    3.3    2.1    2.1     .5    2.5    4.1    6.8    4.2    4.3    4.0    3.8    3.1

  Final sales of computers\1\.......    8.8   41.0   22.7   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   20.7   74.6
  GDP excluding final sales of
   computers........................    1.8    2.8    4.3    -.9    1.4   -1.2    1.4    3.4    2.3    2.3     .5    1.7    3.8    6.8    4.0    4.5    3.3    3.9    3.3

  Farm gross value added\2\.........    6.5    4.0   -9.8   -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   36.4   77.1

  Nonfarm business gross value
   added\3\.........................    1.8    3.8    5.3   -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    4.2    4.2    3.7

Price indexes:
  GDP...............................    1.7    1.8    2.2    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    1.4    2.3
  GDP excluding food and energy.....    2.0    1.6    1.9    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    1.8    2.1
  GDP excluding final sales of
   computers........................    1.9    2.0    2.3    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    1.5    2.5

  Gross domestic purchases..........    1.5    2.0    2.4    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    1.9    2.9
  Gross domestic purchases excluding
   food and energy..................    1.8    1.6    1.9    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    1.7    2.0
  Gross domestic purchases excluding
   final sales of computers to
   domestic purchasers..............    1.7    2.2    2.6    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    2.1    3.1

  Personal consumption expenditures
   (PCE)............................    1.4    1.9    2.2    3.3    2.6     .6     .6     .9    2.9    2.0    1.4    3.2     .7    1.6    1.2    3.3    3.1    1.3    2.7
  Personal consumption expenditures
   excluding food and energy........    1.8    1.3    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     .9    1.7
  Market-based PCE\4\...............    1.1    1.9    2.3    2.8    2.1     .8    -.5     .6    2.9    1.8    1.5    3.0     .6    2.0     .8    3.2    3.7    1.4    2.7
  Market-based PCE excluding food
   and energy\4\....................    1.5    1.2    1.5    2.1    1.3    1.9    1.6    1.0    1.8    1.7    1.1     .9    1.1    1.3     .8    1.8    2.1    1.0    1.7
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  1. For some components of final sales of computers, includes
computer parts.
  2. Farm output less intermediate goods and services purchased.
  3. Consists of GDP less gross value added of farm, of
households and institutions, and of general government.
  4. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.
  See "Explanatory Note" at the end of the tables.



     Explanatory Note: NIPA Measures of Quantities and Prices


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

     Annual changes in quantities and prices are calculated using a Fisher formula that incorporates
weights from two adjacent years.  (Quarterly changes in quantities and prices are calculated using a
Fisher formula that incorporates weights from two adjacent quarters; quarterly indexes are adjusted for
consistency to the annual indexes before percent changes are calculated.)  For example, the 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.