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News Release: Gross Domestic Product

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EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, WEDNESDAY, JANUARY 31, 2007

Virginia H. Mannering:  (202)   606-5304                                           BEA 07-02
Recorded message:       (202)   606-5306


                 GROSS DOMESTIC PRODUCT: FOURTH QUARTER 2006 (ADVANCE)

	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 3.5 percent in the fourth quarter of 2006, 
according to advance estimates released by the Bureau of Economic Analysis.  In the third quarter, real 
GDP increased 2.0 percent. 

        The Bureau emphasized that the fourth-quarter "advance" estimates are based on source data that
are incomplete or subject to further revision by the source agency (see the box on page 4).  The fourth-
quarter "preliminary" estimates, based on more comprehensive data, will be released on February 28,
2007.

 	The increase in real GDP in the fourth quarter primarily reflected positive contributions from 
personal consumption expenditures (PCE), exports, state and local government spending, and federal 
government spending that were partly offset by negative contributions from residential fixed investment    
and private inventory investment.  Imports, which are a subtraction in the calculation of GDP, 
decreased.
	
	The acceleration in real GDP growth in the fourth quarter primarily reflected a downturn in 
imports and accelerations in PCE for nondurable goods, in exports, in federal government spending, and 
in state and local government spending that were partly offset by downturns in private inventory 
investment and in equipment and software and a deceleration in nonresidential structures. 

	Final sales of computers contributed 0.25 percentage point to the fourth-quarter growth in real 
GDP after contributing 0.07 percentage point to the third-quarter growth.  Motor vehicle output 
subtracted 1.17 percentage points from the fourth-quarter growth in real GDP after contributing 0.76 
percentage point to the third-quarter growth.  

 

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

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


 
	The price index for gross domestic purchases, which measures prices paid by U.S. residents, 
increased 0.1 percent in the fourth quarter, compared with an increase of 2.2 percent in the third.  
Excluding food and energy prices, the price index for gross domestic purchases increased 2.3 percent       
in the fourth quarter, compared with 2.2 percent in the third. 

	Real personal consumption expenditures increased 4.4 percent in the fourth quarter, compared 
with an increase of 2.8 percent in the third.  Durable goods increased 6.0 percent, compared with an 
increase of 6.4 percent.  Nondurable goods increased 6.9 percent, compared with an increase of 1.5 
percent.  Services expenditures increased 2.9 percent, compared with an increase of 2.8 percent.

        Real nonresidential fixed investment decreased 0.4 percent in the fourth quarter, in contrast to an
increase of 10.0 percent in the third.  Nonresidential structures increased 2.8 percent, compared with an 
increase of 15.7 percent.  Equipment and software decreased 1.8 percent, in contrast to an increase of 7.7 
percent.  Real residential fixed investment decreased 19.2 percent, compared with a decrease of 18.7 
percent.

	Real exports of goods and services increased 10.0 percent in the fourth quarter, compared with an 
increase of 6.8 percent in the third.  Real imports of goods and services decreased 3.2 percent, in 
contrast to an increase of 5.6 percent.

	Real federal government consumption expenditures and gross investment increased 4.5 percent in 
the fourth quarter, compared with an increase of 1.3 percent in the third.  National defense increased 
11.9 percent, in contrast to a decrease of 1.2 percent.  Nondefense decreased 9.3 percent, in contrast to 
an increase of 6.5 percent.  Real state and local government consumption expenditures and gross 
investment increased 3.3 percent, compared with an increase of 1.9 percent.

	The real change in private inventories subtracted 0.71 percentage point from the fourth-quarter 
change in real GDP after adding 0.06 percentage point to the third-quarter change.  Private businesses 
increased inventories $35.3 billion in the fourth quarter, following increases of $55.4 billion in the third 
quarter and $53.7 billion in the second.

	Real final sales of domestic product -- GDP less change in private inventories -- increased 4.2 
percent in the fourth quarter, compared with an increase of 1.9 percent in the third.


Gross domestic purchases

	Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever 
produced -- increased 1.7 percent in the fourth quarter, compared with an increase of 2.0 percent in the 
third. 


Disposition of personal income

	Current-dollar personal income increased $131.8 billion (4.9 percent) in the fourth quarter, 
compared with an increase of $157.2 billion (5.9 percent) in the third.  

	Personal current taxes increased $24.3 billion in the fourth quarter, compared with an increase of 
$5.2 billion in the third.  

 	Disposable personal income increased $107.5 billion (4.6 percent) in the fourth quarter, compared 
with an increase of $152.1 billion (6.6 percent) in the third.  Real disposable personal income increased 
5.4 percent, compared with an increase of 4.1 percent. 

        Personal outlays increased $91.8 billion (3.8 percent) in the fourth quarter, compared with an
increase of $133.0 billion (5.7 percent) in the third.  Personal saving -- disposable personal income less 
personal outlays -- was a negative $96.0 billion in the fourth quarter, compared with a negative $111.7 
billion in the third.  The personal saving rate -- saving as a percentage of disposable personal income --
was a negative 1.0 percent in the fourth quarter, compared with a negative 1.2 percent in the third.  
Saving from current income may be near zero or negative when outlays are financed by borrowing 
(including borrowing financed through credit cards or home equity loans), by selling investments or 
other assets, or by using savings from previous periods.  For more information, see the FAQs on 
"Personal Saving" on BEA's Web site.  For a comparison of personal saving in BEA's national income
and product accounts with personal saving in the Federal Reserve Board's flow of funds accounts, go to
http://www.bea.gov/national/nipaweb/Nipa-Frb.asp.


Current-dollar GDP

	Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 
5.0 percent, or $164.6 billion, in the fourth quarter to a level of $13,487.2 billion.  In the third quarter, 
current-dollar GDP increased 3.8 percent, or $125.3 billion.


2006 GDP     

	Real GDP increased 3.4 percent in 2006 (that is, from the 2005 annual level to the 2006 annual 
level), compared with an increase of 3.2 percent in 2005.  

	The major contributors to the increase in real GDP in 2006 were personal consumption 
expenditures (PCE), exports, and equipment and software.  Imports, which are a subtraction in the 
calculation of GDP, increased.

	The acceleration in real GDP primarily reflected an upturn in private inventory investment and 
accelerations in exports, in nonresidential structures, and in state and local government spending that 
were partly offset by a downturn in residential fixed investment. 

	The price index for gross domestic purchases increased 3.1 percent in 2006, compared with an 
increase of 3.5 percent in 2005.

	Current-dollar GDP increased 6.4 percent, or $798.1 billion, in 2006.  Current-dollar GDP 
increased 6.3 percent, or $743.3 billion, in 2005.

	During 2006 (that is, measured from the fourth quarter of 2005 to the fourth quarter of 2006), real 
GDP increased 3.4 percent.  Real GDP increased 3.1 percent during 2005.  The price index for gross 
domestic purchases increased 2.2 percent during 2006, compared with an increase of 3.6 percent during 
2005.                   



BOX
     Information on the assumptions used for unavailable source data is provided in a technical note 
that is posted with the news release on BEA's Web site.  Within a few days after the release, a detailed 
"Key Source Data and Assumptions" file is posted on the Web site.  In the middle of each month, an
analysis of the current quarterly estimates of GDP and related series is made available on the Web site; 
click on Survey of Current Business, "GDP and the Economy."



                                *          *          *


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


                                *          *          *


                   Next release -- February 28, 2007, at 8:30 A.M. EST for:
                   Gross Domestic Product:  Fourth Quarter 2006 (Preliminary)
                                                                                 						


		                    Comparisons of Revisions to GDP
                                                                         
   Quarterly estimates of GDP are released on the following schedule: "Advance" estimates, based on source data
that are incomplete or subject to further revision by the source agency, are released near the end of the first month
after the end of the quarter; as more detailed and more comprehensive data become available, "preliminary" and
"final" estimates are released near the end of the second and third months, respectively.  The "latest" estimates reflect
the results of both annual and comprehensive revisions.

   Annual revisions, which cover the quarters of the 3 most recent calendar years, are usually carried out each
summer and incorporate more comprehensive data including annual surveys.  Comprehensive (or benchmark) revisions
are carried out at about 5-year intervals and incorporate major periodic source data, as well as improvements in
concepts and methods that update the accounts to portray more accurately the evolving U.S. economy.

   The table below shows comparisons of the revisions between quarterly percent changes of current-dollar and
real GDP for the different vintages of the estimates.  From the advance estimate to the preliminary estimate (one
month later), the average revision to real GDP without regard to sign is 0.5 percentage point, while from the advance
estimate to the final estimate (two months later), it is 0.6 percentage point.  From the advance estimate to the latest
estimate, the average revision without regard to sign is 1.3 percentage points.  The average revision (with regard to
sign) from the advance estimate to the latest estimate is 0.4 percentage point, which is larger than the average
revisions from the advance estimate to the preliminary or to the final estimates.  The larger average revisions to the
latest estimate reflect the fact that comprehensive revisions include major improvements such as the introduction of
chain indexes and the capitalization of software.  The current quarterly estimates correctly indicate the direction of change of
real GDP 98 percent of the time, correctly indicate whether it is accelerating or decelerating 74 percent of the time,
and correctly indicate whether real GDP growth is above, near, or below trend growth more than three-fifths of the
time.

			Revisions Between Quarterly Percent Changes of GDP: Vintage Comparisons
                        			    [Annual rates]


Vintages			Average			Average without		  Standard deviation of
compared                                                regard to sign            revisions without regard
											to sign

		                          Current-dollar GDP


Advance to preliminary..........  0.2                         0.5                          0.4
Advance to final................   .2 			       .7 			    .4
Preliminary to final............   .0			       .3			    .2

Advance to latest...............   .4                         1.2                           .9


		                               Real GDP

Advance to preliminary..........  0.1			      0.5			   0.4
Advance to final................   .1                          .6                           .4
Preliminary to final............   .0                          .3                           .2


Advance to latest...............   .4                         1.3                          1.0


NOTE.--These comparisons are based on the period from 1983 through 2003


                         Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2004   2005   2006   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06  II 06 III 06  IV 06
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    3.9    3.2    3.4    1.2    3.5    7.5    2.7    3.9    4.0    3.1    2.6    3.4    3.3    4.2    1.8    5.6    2.6    2.0    3.5

Personal consumption expenditures...    3.9    3.5    3.2    2.1    3.6    5.8    2.3    4.7    2.9    3.9    4.3    2.7    4.2    3.9     .8    4.8    2.6    2.8    4.4
  Durable goods.....................    6.4    5.5    5.1     .4   16.8   16.7     .7    6.1    1.7    8.7    6.1    2.4   12.8    9.0  -12.3   19.8    -.1    6.4    6.0
  Nondurable goods..................    3.6    4.5    3.8    3.8    2.3    7.7    1.8    4.3    1.7    3.7    5.4    5.2    4.9    3.4    3.9    5.9    1.4    1.5    6.9
  Services..........................    3.5    2.6    2.5    1.5    1.8    2.9    2.8    4.6    3.8    3.1    3.4    1.6    2.3    3.2    2.0    1.6    3.7    2.8    2.9

Gross private domestic investment...    9.8    5.4    4.6   -1.3    3.3   17.7    9.3    4.8   21.7    2.0    5.1    8.2   -3.6    5.2   16.2    7.8    1.0    -.8  -11.0
  Fixed investment..................    7.3    7.5    3.0    -.4   10.6   13.6    5.5    2.2   11.7    7.6    4.9    7.8   10.5    6.3    2.8    8.2   -1.6   -1.2   -7.3
    Nonresidential..................    5.9    6.8    7.4   -2.6   10.7    9.4    2.8    1.7    7.2   10.3    8.3    6.0    5.2    5.9    5.2   13.7    4.4   10.0    -.4
      Structures....................    2.2    1.1    9.1   -6.9   14.7    -.8   -4.7    3.3    6.9    3.1   -2.0    5.3   -2.0   -7.0   12.0    8.7   20.3   15.7    2.8
      Equipment and software........    7.3    8.9    6.7   -1.0    9.3   13.2    5.6    1.2    7.3   13.0   12.3    6.3    7.9   11.0    2.8   15.6   -1.4    7.7   -1.8
    Residential.....................    9.9    8.6   -4.2    4.1   10.5   22.2   10.6    3.1   19.8    3.2    -.6   11.1   20.0    7.1    -.9    -.3  -11.1  -18.7  -19.2
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    9.2    6.8    8.9   -5.3   -1.7   11.4   20.8    7.2    6.2    4.8    9.9    4.7    9.4    3.2    9.6   14.0    6.2    6.8   10.0
    Goods...........................    9.0    7.5   10.5    2.0   -1.2    8.8   19.8    7.1    6.4    8.3    6.1    5.5   12.8    3.7   11.5   17.3    6.0    9.4    8.8
    Services........................    9.7    5.1    5.2  -20.0   -2.8   17.5   23.1    7.5    5.6   -2.8   19.2    2.9    2.0    2.1    5.5    6.7    6.7     .8   13.0
  Imports...........................   10.8    6.1    5.8   -5.0    4.1    3.7   17.6   10.2   16.0    4.4   12.0    4.1    1.4    2.5   13.2    9.1    1.4    5.6   -3.2
    Goods...........................   10.9    6.7    5.9   -3.9    8.6     .6   17.2   10.1   17.7    4.7   12.6    4.9    2.0    2.7   14.1    9.4    -.1    7.1   -5.0
    Services........................   10.0    2.8    5.3  -10.6  -15.7   21.2   19.6   10.9    7.6    3.1    9.0    -.2   -1.5    1.2    8.3    7.4    9.9   -2.6    6.7

Government consumption expenditures
 and gross investment...............    1.9     .9    2.1   -1.4    6.1    1.5     .7    2.9    2.2    1.3   -1.9    1.6    1.1    3.4   -1.1    4.9     .8    1.7    3.7
  Federal...........................    4.3    1.5    2.0     .1   19.7     .4    3.1    7.2    2.5    5.0   -5.2    3.4     .4    9.6   -4.6    8.8   -4.5    1.3    4.5
    National defense................    5.9    1.7    1.9   -4.4   36.3   -5.3    8.1    9.1    2.0    9.1   -9.1    4.5    2.9   11.2   -9.9    8.9   -2.0   -1.2   11.9
    Nondefense......................    1.2    1.1    2.2    9.0   -6.4   12.4   -6.0    3.6    3.5   -2.9    3.4    1.2   -4.4    6.2    7.1    8.5   -9.3    6.5   -9.3
  State and local...................     .5     .5    2.1   -2.2    -.8    2.1    -.6     .5    2.1    -.9     .1     .6    1.5    -.1    1.0    2.7    4.0    1.9    3.3

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

  Current-dollar measures:
    GDP.............................    6.9    6.3    6.4    4.4    4.8    9.7    4.9    7.8    7.9    5.3    5.9    7.0    5.8    7.6    5.1    9.0    5.9    3.8    5.0
    Final sales of domestic product.    6.5    6.7    6.2    4.6    5.8    9.1    4.4    7.3    6.4    6.2    5.9    6.9    8.2    7.8    3.0    9.1    5.5    3.8    5.8
    Gross domestic purchases........    7.6    6.9    6.4    5.1    4.7    9.1    4.9    8.9    9.7    5.8    7.0    6.7    5.8    8.5    6.3    8.2    6.1    4.2    1.7
    Final sales to domestic
     purchasers.....................    7.2    7.2    6.2    5.3    5.7    8.5    4.4    8.5    8.3    6.7    7.0    6.7    8.1    8.8    4.3    8.2    5.7    4.2    2.4
    GNP.............................    6.7    6.2  .....    4.0    5.4    9.6    5.8    7.4    6.7    5.4    5.3    7.2    5.6    8.4    3.8    9.6    5.7    3.7  .....
    Disposable personal income......    6.4    4.1    5.5    4.8    5.7    8.9    3.2    7.7    6.0    4.7   10.7   -1.8    3.6    3.5    8.6    6.8    2.5    6.6    4.6
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  See "Explanatory Note" at the end of the tables.

                                                Table 2.--Contributions to Percent Change in Real Gross Domestic Product
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2004   2005   2006   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06  II 06 III 06  IV 06
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

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

Percentage points at annual rates:

  Personal consumption expenditures.   2.71   2.44   2.25   1.41   2.53   4.13   1.59   3.30   2.07   2.74   2.97   1.94   2.94   2.76    .53   3.38   1.81   1.96   3.05

    Durable goods...................    .54    .45    .41    .03   1.35   1.39    .06    .51    .14    .71    .50    .20   1.02    .74  -1.08   1.50   -.01    .50    .47
      Motor vehicles and parts......    .07    .02   -.04   -.04    .65    .46   -.29    .09   -.14    .22    .17   -.29    .50    .38  -1.51    .60   -.04    .28   -.08
      Furniture and household
       equipment....................    .35    .29    .36    .05    .49    .67    .27    .33    .28    .36    .21    .27    .28    .40    .33    .65    .10    .20    .43
      Other.........................    .11    .14    .09    .02    .21    .26    .08    .10    .01    .13    .12    .21    .24   -.03    .10    .26   -.06    .03    .12

    Nondurable goods................    .73    .90    .78    .75    .45   1.53    .36    .86    .34    .74   1.07   1.04    .98    .70    .79   1.20    .30    .32   1.38
      Food..........................    .33    .51    .41    .39    .04    .61    .02    .54    .16    .28    .70    .53    .55    .61    .39    .64    .19   -.07    .69
      Clothing and shoes............    .14    .17    .14   -.02    .29    .31   -.02    .32   -.14    .18    .19    .17    .25    .08    .27    .23   -.10    .15    .19
      Gasoline, fuel oil, and other
       energy goods.................    .02   -.01   -.02   -.02   -.02    .10    .06    .00    .00   -.04    .01    .12   -.10   -.15   -.06   -.03    .02    .14    .09
      Other.........................    .24    .23    .24    .39    .14    .52    .30    .00    .32    .32    .16    .21    .28    .16    .19    .36    .19    .11    .41

    Services........................   1.45   1.09   1.05    .63    .73   1.21   1.18   1.92   1.59   1.30   1.39    .70    .94   1.32    .83    .67   1.52   1.14   1.20
      Housing.......................    .40    .30    .24    .11    .18    .35    .40    .49    .42    .37    .32    .29    .28    .24    .18    .24    .25    .27    .33
      Household operation...........    .10    .08   -.02    .00    .00    .02    .17    .11    .10    .06    .25    .01    .04    .09    .01   -.58    .31    .35    .09
        Electricity and gas.........    .02    .04   -.05   -.05   -.08   -.03    .12    .06   -.06   -.07    .25    .00    .00    .03    .03   -.58    .23    .32    .08
        Other household operation...    .08    .04    .03    .05    .08    .05    .05    .05    .16    .13    .00    .01    .04    .06   -.02    .00    .08    .04    .01
      Transportation................    .03    .00    .04    .07   -.03    .03    .02    .05    .06    .00    .04    .02   -.03   -.04    .00    .10    .04    .03    .10
      Medical care..................    .37    .43    .41    .47    .28    .28    .28    .33    .47    .53    .43    .32    .40    .53    .44    .52    .31    .25    .31
      Recreation....................    .14    .08    .06    .02    .15    .13    .16    .18    .13    .09    .05    .13    .05    .05    .04    .09    .02    .08    .11
      Other.........................    .41    .20    .32   -.04    .16    .40    .15    .76    .42    .24    .30   -.07    .20    .44    .16    .31    .58    .15    .26

  Gross private domestic investment.   1.49    .87    .75   -.16    .51   2.56   1.39    .74   3.17    .32    .82   1.32   -.61    .84   2.51   1.31    .17   -.13  -1.92

    Fixed investment................   1.11   1.17    .49   -.04   1.52   2.00    .83    .34   1.72   1.16    .77   1.22   1.62   1.02    .46   1.34   -.27   -.19  -1.21
      Nonresidential................    .58    .67    .75   -.24   1.01    .92    .29    .18    .69    .97    .81    .59    .51    .59    .52   1.36    .45   1.01   -.05
        Structures..................    .06    .03    .26   -.18    .35   -.02   -.12    .08    .17    .08   -.05    .14   -.06   -.20    .31    .25    .56    .46    .09
        Equipment and software......    .52    .64    .49   -.06    .66    .95    .41    .10    .52    .90    .86    .45    .56    .78    .21   1.11   -.10    .55   -.13
          Information processing
           equipment and software...    .36    .30    .32    .31    .13    .82    .70    .30    .05    .21    .33    .43    .29    .26    .25    .74   -.04    .35    .06
            Computers and peripheral
             equipment..............    .10    .12    .11    .12    .00    .26    .21   -.03   -.03    .21    .17    .10    .10    .06    .16    .15    .03    .13    .05
            Software................    .15    .09    .10    .06    .05    .32    .20    .17    .03    .12    .16    .03    .12    .07    .04    .18    .07    .09    .14
            Other...................    .11    .10    .11    .12    .08    .23    .29    .16    .05   -.12    .00    .30    .06    .13    .04    .40   -.14    .13   -.13
          Industrial equipment......   -.05    .10    .08    .17    .14   -.14   -.22   -.09   -.05    .19    .05    .16   -.07    .23    .19   -.05    .16    .00   -.05
          Transportation equipment..    .14    .15    .01   -.57    .31    .01   -.13   -.08    .46    .39    .40   -.14    .11    .27   -.31    .31   -.32    .15   -.15
          Other equipment...........    .07    .09    .08    .04    .08    .26    .07   -.04    .06    .10    .08    .01    .24    .03    .08    .11    .09    .05   -.01
      Residential...................    .53    .50   -.26    .20    .51   1.08    .55    .16   1.03    .18   -.04    .63   1.11    .43   -.06   -.02   -.72  -1.20  -1.16

    Change in private inventories...    .38   -.30    .26   -.12  -1.01    .56    .56    .40   1.44   -.84    .05    .09  -2.23   -.18   2.05   -.03    .44    .06   -.71
      Farm..........................    .07   -.06    .03    .19   -.16   -.06   -.05    .27    .61   -.48   -.38    .16   -.26    .28    .14   -.01   -.09    .02   -.02
      Nonfarm.......................    .31   -.24    .24   -.31   -.85    .62    .60    .13    .84   -.35    .43   -.06  -1.97   -.46   1.90   -.02    .54    .05   -.69

  Net exports of goods and services.   -.65   -.26   -.02    .21   -.73    .51   -.47   -.73  -1.62   -.20   -.81   -.16    .72   -.06  -1.07   -.04    .42   -.19   1.64

    Exports.........................    .88    .68    .93   -.53   -.16   1.02   1.81    .69    .60    .46    .96    .47    .94    .33    .97   1.41    .66    .73   1.08
      Goods.........................    .60    .52    .76    .13   -.08    .55   1.20    .47    .43    .55    .42    .38    .88    .27    .80   1.20    .45    .71    .68
      Services......................    .28    .16    .17   -.65   -.08    .47    .61    .22    .17   -.09    .54    .09    .06    .06    .17    .21    .21    .03    .40

    Imports.........................  -1.53   -.94   -.95    .74   -.57   -.51  -2.29  -1.42  -2.22   -.66  -1.77   -.63   -.22   -.39  -2.04  -1.46   -.24   -.93    .56
      Goods.........................  -1.29   -.87   -.81    .47   -.97   -.07  -1.86  -1.17  -2.03   -.59  -1.55   -.64   -.26   -.36  -1.84  -1.27    .01  -1.00    .73
      Services......................   -.24   -.07   -.14    .27    .40   -.44   -.43   -.25   -.18   -.08   -.22    .01    .04   -.03   -.20   -.19   -.25    .07   -.17

  Government consumption expenditures
   and gross investment.............    .36    .17    .40   -.26   1.16    .29    .14    .55    .43    .24   -.37    .31    .21    .64   -.21    .94    .16    .32    .70

    Federal.........................    .30    .11    .14    .01   1.26    .03    .21    .49    .18    .34   -.38    .23    .03    .66   -.33    .61   -.32    .09    .31
      National defense..............    .27    .08    .09   -.20   1.41   -.25    .35    .41    .09    .41   -.45    .21    .13    .52   -.49    .41   -.09   -.06    .53
        Consumption expenditures....    .22    .05    .05   -.22   1.30   -.32    .31    .40    .00    .34   -.44    .25    .03    .45   -.47    .37   -.17   -.04    .42
        Gross investment............    .05    .03    .04    .02    .12    .07    .05    .00    .10    .08   -.01   -.04    .10    .07   -.02    .05    .08   -.02    .11
      Nondefense....................    .03    .03    .05    .21   -.16    .28   -.14    .09    .08   -.07    .08    .03   -.11    .14    .16    .20   -.23    .15   -.22
       Consumption expenditures.....    .03    .00    .04    .19   -.21    .27   -.12    .11    .03   -.06    .05    .01   -.09    .08    .05    .16   -.10    .13   -.17
       Gross investment.............    .00    .02    .01    .01    .06    .01   -.03   -.03    .05   -.01    .03    .01   -.02    .06    .11    .03   -.12    .02   -.05

    State and local.................    .06    .06    .26   -.27   -.10    .26   -.07    .06    .25   -.10    .01    .08    .18   -.01    .13    .33    .48    .23    .39
        Consumption expenditures....    .10    .08    .18   -.19   -.07   -.04    .07    .19    .15    .08    .15    .02    .05    .14    .09    .17    .20    .30    .33
        Gross investment............   -.04   -.02    .08   -.09   -.02    .30   -.15   -.13    .11   -.18   -.14    .06    .13   -.15    .03    .16    .28   -.08    .07

Addenda:
    Goods...........................   1.56   1.43   1.97   1.27    .56   5.00    .81   1.20    .99   1.56   1.43   1.51   1.09   2.07    .97   3.86   1.12   1.17   2.42
    Services........................   1.84   1.31   1.35    .03   2.06   1.15   1.63   2.59   1.74   1.48   1.47   1.07   1.04   2.02    .46   1.39   1.40   1.63   2.01
    Structures......................    .51    .49    .06   -.09    .85   1.33    .22    .05   1.31    .06   -.29    .82   1.13    .09    .33    .33    .04   -.84   -.96
    Motor vehicle output............    .12    .20   -.05   -.46    .36    .30   -.23    .33   -.24    .52    .06    .38   -.03    .70   -.71    .12   -.31    .76  -1.17
    Final sales of computers........    .06    .16    .11    .12   -.02    .50    .15   -.13   -.14    .15    .26    .16    .20    .08    .20    .07    .04    .07    .25
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  See "Explanatory Note" at the end of the tables.

                                      Table 3.--Gross Domestic Product and Related Measures: Level and Change From Preceding Period
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Billions of current dollars                                      Billions of chained (2000) dollars
                                  ------------------------------------------------------  -------------------------------------------------------------------------------
                                                        Seasonally adjusted                                    Seasonally adjusted                Change from preceding
                                                          at annual rates                                        at annual rates                          period
                                            --------------------------------------------          --------------------------------------------  -------------------------
                                       2006    IV 05     I 06    II 06   III 06    IV 06     2006    IV 05     I 06    II 06   III 06    IV 06     2006   III 06    IV 06
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 13,253.9 12,730.5 13,008.4 13,197.3 13,322.6 13,487.2 11,422.4 11,163.8 11,316.4 11,388.1 11,443.5 11,541.6    373.8     55.4     98.1

Personal consumption expenditures.  9,270.8  8,927.8  9,079.2  9,228.1  9,346.7  9,429.3  8,092.3  7,910.2  8,003.8  8,055.0  8,111.2  8,199.2    251.1     56.2     88.0

  Durable goods...................  1,071.3  1,019.6  1,064.1  1,061.8  1,075.5  1,083.5  1,204.0  1,137.9  1,190.5  1,190.3  1,208.8  1,226.5     58.7     18.5     17.7
    Motor vehicles and parts......    445.3    421.6    442.7    441.7    451.3    445.6    448.0    426.3    445.1    443.7    452.9    450.2     -4.9      9.2     -2.7
    Furniture and household
     equipment....................    404.9    386.0    402.3    401.3    403.2    412.8    551.2    511.5    538.5    542.9    551.7    571.5     60.6      8.8     19.8
    Other.........................    221.0    212.0    219.1    218.8    221.0    225.2    224.5    216.3    224.6    222.5    223.4    227.5     11.9       .9      4.1

  Nondurable goods................  2,716.0  2,613.5  2,658.2  2,721.4  2,747.7  2,736.6  2,363.5  2,309.6  2,342.8  2,351.1  2,360.1  2,399.9     86.7      9.0     39.8
    Food..........................  1,281.7  1,233.7  1,262.3  1,274.0  1,280.7  1,309.6  1,111.4  1,085.7  1,103.4  1,108.8  1,106.8  1,126.6     45.7     -2.0     19.8
    Clothing and shoes............    358.6    349.1    355.4    355.1    358.7    365.2    392.7    383.1    391.1    387.4    392.6    399.6     20.0      5.2      7.0
    Gasoline, fuel oil, and other
     energy goods.................    338.7    322.1    316.2    359.1    369.4    309.9    197.9    196.6    196.0    196.3    198.7    200.5     -1.6      2.4      1.8
    Other.........................    737.1    708.6    724.2    733.3    738.9    752.0    671.5    652.4    662.6    668.3    671.5    683.7     27.6      3.2     12.2

  Services........................  5,483.6  5,294.7  5,356.8  5,444.9  5,523.5  5,609.2  4,549.0  4,476.7  4,494.5  4,535.4  4,566.6  4,599.4    112.4     31.2     32.8
    Housing.......................  1,382.2  1,326.6  1,345.4  1,370.1  1,394.2  1,419.2  1,148.7  1,131.2  1,137.6  1,144.5  1,151.7  1,160.8     26.1      7.2      9.1
    Household operation...........    505.8    506.1    494.8    499.1    512.3    517.0    415.8    419.8    404.3    412.5    422.1    424.5     -2.2      9.6      2.4
      Electricity and gas.........    212.0    219.9    206.2    206.9    216.6    218.3    149.9    154.7    141.7    147.0    154.4    156.3     -3.9      7.4      1.9
      Other household operation...    293.8    286.2    288.6    292.2    295.7    298.7    267.1    264.9    264.8    267.0    268.1    268.3      3.0      1.1       .2
    Transportation................    337.1    325.9    330.4    335.9    339.5    342.4    288.4    283.5    286.3    287.5    288.5    291.3      4.0      1.0      2.8
    Medical care..................  1,589.1  1,534.0  1,557.2  1,578.2  1,597.5  1,623.6  1,304.3  1,279.0  1,292.6  1,300.9  1,307.6  1,316.1     43.4      6.7      8.5
    Recreation....................    379.5    367.7    372.4    377.2    382.7    385.7    319.9    315.1    317.5    318.1    320.4    323.5      6.8      2.3      3.1
    Other.........................  1,289.9  1,234.4  1,256.5  1,284.3  1,297.3  1,321.4  1,070.6  1,046.5  1,054.9  1,070.6  1,074.8  1,081.9     34.4      4.2      7.1

Gross private domestic investment.  2,218.4  2,154.5  2,214.8  2,237.1  2,235.5  2,186.0  1,951.3  1,927.0  1,963.6  1,968.5  1,964.8  1,908.2     85.0     -3.7    -56.6

  Fixed investment................  2,165.0  2,105.8  2,167.7  2,174.8  2,171.4  2,146.0  1,897.1  1,877.3  1,914.6  1,906.8  1,901.3  1,865.8     55.1     -5.5    -35.5
    Nonresidential................  1,397.9  1,304.3  1,359.2  1,384.3  1,420.8  1,427.1  1,314.7  1,248.2  1,288.8  1,302.8  1,334.2  1,332.8     90.9     31.4     -1.4
      Structures..................    411.6    359.7    378.2    406.3    426.9    435.2    274.4    254.2    259.6    271.9    282.0    283.9     22.9     10.1      1.9
      Equipment and software......    986.2    944.7    981.0    977.9    994.0    992.0  1,050.7  1,007.6  1,044.8  1,041.2  1,060.7  1,056.0     65.8     19.5     -4.7
        Information processing
         equipment and software...    485.3    461.3    482.4    479.9    489.6    489.3    602.5    567.3    595.9    594.3    608.6    611.3     49.9     14.3      2.7
          Computers and peripheral
           equipment..............     86.9     85.9     88.0     85.9     87.2     86.7    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    209.1    196.9    203.6    207.0    210.8    215.0    220.1    209.5    215.6    217.8    221.0    226.0     13.9      3.2      5.0
          Other...................    189.3    178.4    190.8    187.1    191.7    187.7    209.0    197.5    211.6    206.7    211.3    206.6     15.4      4.6     -4.7
        Industrial equipment......    169.2    163.9    163.4    170.1    172.0    171.4    152.3    150.4    149.0    153.9    153.9    152.6      8.8       .0     -1.3
        Transportation equipment..    158.4    154.6    165.7    155.9    157.5    154.7    146.2    143.2    152.2    142.7    147.3    142.8       .8      4.6     -4.5
        Other equipment...........    173.3    164.9    169.4    172.1    174.9    176.6    157.1    151.2    154.3    157.1    158.6    158.3      9.8      1.5      -.3
    Residential...................    767.1    801.5    808.5    790.6    750.5    718.8    582.5    618.9    618.5    600.5    570.3    540.7    -25.5    -30.2    -29.6

  Change in private inventories...     53.4     48.6     47.2     62.3     64.2     40.1     46.4     43.5     41.2     53.7     55.4     35.3     26.8      1.7    -20.1
    Farm..........................      2.9      5.8      5.4      2.3      2.5      1.5      2.7      4.8      4.3      1.9      2.5      2.1      2.5       .6      -.4
    Nonfarm.......................     50.5     42.8     41.8     59.9     61.6     38.6     43.9     38.6     36.8     52.2     53.3     33.4     24.3      1.1    -19.9

Net exports of goods and services.   -761.8   -775.4   -765.2   -781.8   -801.7   -698.3   -617.7   -636.6   -636.6   -624.2   -628.8   -581.4      1.5     -4.6     47.4

  Exports.........................  1,466.2  1,352.4  1,405.4  1,448.1  1,488.3  1,523.2  1,302.3  1,228.4  1,269.3  1,288.5  1,310.0  1,341.5    106.2     21.5     31.5
    Goods.........................  1,035.7    944.3    989.3  1,019.1  1,055.8  1,078.6    931.6    870.8    906.2    919.5    940.4    960.4     88.4     20.9     20.0
    Services......................    430.5    408.1    416.0    429.0    432.5    444.6    371.3    357.8    363.6    369.5    370.3    381.8     18.4       .8     11.5

  Imports.........................  2,228.0  2,127.8  2,170.6  2,229.8  2,290.1  2,221.5  1,920.1  1,865.0  1,905.9  1,912.7  1,938.8  1,922.9    104.8     26.1    -15.9
    Goods.........................  1,878.4  1,799.3  1,832.6  1,879.0  1,938.8  1,863.4  1,640.6  1,595.8  1,631.9  1,631.7  1,660.1  1,638.9     90.7     28.4    -21.2
    Services......................    349.6    328.5    338.1    350.8    351.3    358.1    281.7    271.7    276.6    283.2    281.3    285.9     14.2     -1.9      4.6

Government consumption expenditures
 and gross investment.............  2,526.4  2,423.6  2,479.6  2,513.9  2,542.1  2,570.2  1,998.8  1,963.5  1,987.1  1,991.2  1,999.4  2,017.7     40.8      8.2     18.3

  Federal.........................    926.4    886.2    921.7    919.7    927.2    937.1    741.9    729.6    745.1    736.6    738.9    747.1     14.4      2.3      8.2
    National defense..............    620.8    590.9    613.5    616.5    618.1    635.0    492.7    481.4    491.8    489.3    487.8    501.8      9.1     -1.5     14.0
      Consumption expenditures....    541.8    516.9    537.7    537.7    539.3    552.4    418.0    410.0    419.0    414.7    413.7    424.5      4.7     -1.0     10.8
      Gross investment............     79.0     74.1     75.8     78.8     78.8     82.5     76.4     72.6     74.0     76.5     75.9     79.3      5.2      -.6      3.4
    Nondefense....................    305.7    295.3    308.2    303.2    309.0    302.2    249.0    248.0    253.1    247.0    250.9    244.9      5.3      3.9     -6.0
      Consumption expenditures....    266.2    254.2    265.9    264.6    269.8    264.5    211.3    208.7    212.8    210.1    213.4    208.9      4.0      3.3     -4.5
      Gross investment............     39.5     41.1     42.4     38.6     39.3     37.6     38.1     40.1     41.1     37.2     37.8     36.2      1.4       .6     -1.6

  State and local.................  1,600.0  1,537.4  1,557.9  1,594.2  1,614.9  1,633.0  1,256.8  1,233.7  1,242.0  1,254.4  1,260.3  1,270.5     26.4      5.9     10.2
      Consumption expenditures....  1,287.4  1,243.4  1,256.2  1,280.7  1,300.0  1,312.6  1,006.0    991.9    996.1  1,001.2  1,009.0  1,017.4     18.0      7.8      8.4
      Gross investment............    312.6    294.0    301.7    313.5    315.0    320.4    250.7    241.6    245.7    253.1    251.1    252.9      8.6     -2.0      1.8

Residual..........................    .....    .....    .....    .....    .....    .....    -86.9    -53.7    -78.7    -77.6    -88.3   -101.3    .....    .....    .....

Addenda:
  Final sales of domestic product. 13,200.4 12,681.9 12,961.2 13,135.1 13,258.4 13,447.1 11,369.7 11,115.5 11,269.0 11,328.0 11,381.6 11,500.3    344.5     53.6    118.7
  Gross domestic purchases........ 14,015.6 13,505.9 13,773.6 13,979.1 14,124.3 14,185.5 12,034.1 11,792.9 11,946.3 12,005.9 12,066.6 12,117.8    374.4     60.7     51.2
  Final sales to domestic
   purchasers..................... 13,962.2 13,457.3 13,726.4 13,916.8 14,060.1 14,145.5 11,981.4 11,744.6 11,898.7 11,945.9 12,004.7 12,076.4    345.3     58.8     71.7

  Gross domestic product.......... 13,253.9 12,730.5 13,008.4 13,197.3 13,322.6 13,487.2 11,422.4 11,163.8 11,316.4 11,388.1 11,443.5 11,541.6    373.8     55.4     98.1
  Plus: Income receipts from
   the rest of the world..........    .....    564.9    603.3    661.4    682.3    .....    .....    496.1    526.4    571.4    586.5    .....    .....     15.1    .....
  Less: Income payments to
   the rest of the world..........    .....    552.4    574.3    638.6    665.7    .....    .....    483.8    499.7    550.3    570.9    .....    .....     20.6    .....
  Equals: Gross national product..    ..... 12,743.0 13,037.4 13,220.1 13,339.2    .....    ..... 11,175.6 11,342.7 11,408.5 11,458.5    .....    .....     50.0    .....

  Net domestic product............ 11,678.5 11,168.0 11,460.3 11,624.6 11,740.6 11,888.6  9,990.2  9,727.9  9,896.5  9,959.8 10,007.3 10,097.3    433.0     47.5     90.0
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  Note.--Users are cautioned that particularly for components that
exhibit rapid change in prices relative to other prices in the
economy, the chained-dollar estimates should not be used to measure
the component's relative importance or its contribution to the
growth rate of more aggregate series.  For accurate estimates of
the contributions to percent changes in real GDP, use table 2.
  See "Explanatory Note" at the end of the tables.

                              Table 4.--Price Indexes for Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2004   2005   2006   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06  II 06 III 06  IV 06
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.8    3.0    2.9    3.1    1.3    2.1    2.2    3.7    3.7    2.1    3.2    3.5    2.4    3.3    3.3    3.3    3.3    1.9    1.5

Personal consumption expenditures...    2.6    2.9    2.8    3.1     .7    2.4    1.5    3.7    3.6    1.9    3.0    2.3    3.1    4.1    2.9    2.0    4.0    2.4    -.8
  Durable goods.....................   -1.6    -.7   -1.4   -4.8   -4.2   -4.0   -3.5     .0     .3   -2.3     .3     .3    -.6   -2.9   -1.3   -1.0    -.8   -1.1   -2.8
  Nondurable goods..................    3.3    3.6    3.1    5.6   -2.9    3.9     .5    5.7    6.0    1.1    4.4    1.1    4.8    9.0     .6    1.1    8.3    2.3   -8.0
  Services..........................    3.2    3.2    3.4    3.6    3.5    3.0    3.0    3.5    3.2    3.1    3.0    3.2    3.1    3.2    5.0    3.1    2.9    3.0    3.4

Gross private domestic investment...    3.3    3.4    3.2    2.8    -.7    1.3    3.5    4.2    4.5    3.6    3.7    3.0    2.7    3.7    4.3    3.7    3.1     .6    3.0
  Fixed investment..................    3.4    3.5    3.3    3.1    -.8    1.3    3.5    4.3    4.6    3.6    3.7    3.1    2.7    4.0    4.6    3.8    3.0     .5    2.9
    Nonresidential..................    1.2    2.6    2.8     .1   -1.3     .7    1.4    1.0    2.1    1.4    2.6    3.6    2.0    2.2    3.5    3.7    3.0     .9    2.2
      Structures....................    6.2   11.3   11.4    4.8    -.2    2.3    4.2    6.7    7.8   10.2   12.0   11.6    9.2   13.2   16.8   12.4   10.7    5.3    5.1
      Equipment and software........    -.4    -.4    -.3   -1.5   -1.7     .1     .4    -.9     .2   -1.5    -.5     .9    -.4   -1.5   -1.0     .6     .1    -.9    1.0
    Residential.....................    7.3    5.1    4.0    9.4     .2    2.6    7.7   10.5    9.0    7.4    5.6    2.3    3.8    6.9    6.3    3.8    2.9    -.1    4.1
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    3.7    3.6    3.3    4.1    1.1     .9    3.0    6.1    5.0    1.8    4.0    4.6    3.6    2.6    2.8    2.3    6.1    4.5    -.3
    Goods...........................    3.7    3.1    3.3    3.6    1.6    -.7    4.1    6.5    5.2    1.1    3.6    4.4    3.0    1.3    2.3    2.8    6.2    5.3     .1
    Services........................    3.5    4.8    3.4    5.3    -.2    4.7     .7    5.0    4.5    3.5    5.0    5.1    4.9    5.6    4.2    1.2    6.0    2.5   -1.2
  Imports...........................    5.0    6.3    4.3   11.3   -3.9    2.6     .4    9.7    7.3    5.5    6.7    2.6    9.2   10.2    4.3    -.7    9.8    5.4   -8.5
    Goods...........................    5.0    6.5    4.5   11.9   -6.7    2.5     .5   10.1    7.9    5.4    6.8    1.8   10.1   11.3    5.1   -1.6   10.6    5.8  -10.2
    Services........................    5.1    5.4    3.4    8.1   11.8    3.1     .0    8.0    4.4    6.2    6.3    6.8    5.1    4.3    -.1    4.5    5.5    3.2    1.3

Government consumption expenditures
 and gross investment...............    4.4    5.6    4.3    9.2    1.3    2.5    2.2    6.8    5.3    4.6    5.7    7.0    4.6    5.9    4.7    4.4    4.8    2.8     .8
  Federal...........................    4.7    4.8    3.4   11.3    1.5    1.0    1.1   11.5    5.3    2.2    2.9   11.3    2.2    3.3     .4    7.6    3.8    2.0    -.1
    National defense................    4.7    5.1    3.4   10.3    1.4    1.2    1.3   10.5    5.8    2.8    3.2   11.6    2.4    3.4    1.0    6.7    4.1    2.3    -.5
    Nondefense......................    4.7    4.1    3.5   12.9    1.6     .6     .6   13.7    4.3     .9    2.3   10.6    1.8    3.2    -.7    9.5    3.2    1.4     .7
  State and local...................    4.3    6.2    4.8    8.1    1.1    3.3    2.9    4.1    5.3    6.1    7.4    4.6    6.1    7.4    7.3    2.6    5.4    3.4    1.2

Addenda:
  Final sales of domestic product...    2.8    3.0    2.9    3.2    1.3    2.1    2.2    3.7    3.7    2.1    3.2    3.5    2.4    3.3    3.3    3.3    3.3    1.9    1.5
  Gross domestic purchases..........    3.1    3.5    3.1    4.1     .6    2.2    1.9    4.3    4.1    2.6    3.6    3.2    3.3    4.4    3.5    2.7    4.0    2.2     .1
  Final sales to domestic
   purchasers.......................    3.1    3.5    3.1    4.2     .6    2.2    1.9    4.3    4.1    2.6    3.6    3.2    3.3    4.4    3.5    2.7    4.0    2.2     .0
  Gross national product (GNP)......    2.8    3.0  .....    3.2    1.3    2.1    2.2    3.7    3.7    2.1    3.2    3.5    2.4    3.3    3.2    3.3    3.3    1.9  .....

  Implicit price deflators:
    GDP.............................    2.8    3.0    2.9    3.2    1.3    2.1    2.2    3.8    3.7    2.1    3.2    3.4    2.5    3.3    3.3    3.3    3.3    1.9    1.5
    Gross domestic purchases........    3.1    3.5    3.1    4.1     .6    2.3    1.9    4.3    4.0    2.6    3.6    3.2    3.4    4.3    3.5    2.7    4.0    2.1     .0
    GNP.............................    2.8    3.0  .....    3.1    1.3    2.1    2.2    3.8    3.7    2.1    3.2    3.4    2.5    3.3    3.3    3.3    3.3    1.9  .....
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  See "Explanatory Note" at the end of the tables.

                                      Table 5.--Real Gross Domestic Product, Quantity Indexes
                                                     [Index numbers, 2000=100]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Seasonally adjusted
                                                                                ---------------------------------------------------
                                                  2004       2005       2006      IV 05       I 06      II 06     III 06      IV 06
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    109.031    112.546    116.354    113.719    115.274    116.004    116.569    117.568

Personal consumption expenditures..........    112.430    116.349    120.075    117.373    118.761    119.521    120.355    121.661
  Durable goods............................    125.753    132.666    139.462    131.799    137.893    137.868    140.019    142.068
  Nondurable goods.........................    111.913    116.924    121.376    118.608    120.313    120.742    121.204    123.246
  Services.................................    110.055    112.925    115.785    113.945    114.398    115.440    116.234    117.069

Gross private domestic investment..........    102.026    107.537    112.436    111.034    113.143    113.429    113.215    109.955
  Fixed investment.........................    102.080    109.708    112.993    111.811    114.033    113.570    113.240    111.128
    Nonresidential.........................     92.995     99.326    106.703    101.308    104.606    105.738    108.292    108.175
      Structures...........................     79.418     80.302     87.603     81.174     82.893     86.819     90.044     90.657
      Equipment and software...............     98.400    107.180    114.342    109.653    113.704    113.313    115.434    114.916
    Residential............................    125.281    136.050    130.337    138.495    138.391    134.368    127.601    120.987
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............    102.201    109.105    118.796    112.054    115.783    117.536    119.495    122.371

Imports of goods and services..............    115.962    123.007    130.107    126.377    129.146    129.608    131.378    130.298

Government consumption expenditures and
 gross investment..........................    112.720    113.731    116.104    114.048    115.423    115.657    116.136    117.198
  Federal..................................    123.813    125.701    128.183    126.053    128.728    127.262    127.669    129.073
  State and local..........................    107.094    107.660    109.972    107.954    108.682    109.762    110.277    111.169

Addenda:
  Final sales of domestic product..........    109.096    112.958    116.487    113.883    115.455    116.060    116.609    117.825
  Gross domestic purchases.................    110.691    114.351    118.023    115.657    117.161    117.746    118.341    118.843
  Final sales to domestic purchasers.......    110.761    114.755    118.160    115.825    117.345    117.810    118.390    119.097
  Gross national product...................    109.039    112.399      .....    113.390    115.085    115.753    116.260      .....
-----------------------------------------------------------------------------------------------------------------------------------
  See "Explanatory Note" at the end of the tables.

                                        Table 6.--Price Indexes for Gross Domestic Product
                                                     [Index numbers, 2000=100]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Seasonally adjusted
                                                                                ---------------------------------------------------
                                                  2004       2005       2006      IV 05       I 06      II 06     III 06      IV 06
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    109.429    112.744    116.053    114.048    114.967    115.905    116.446    116.893

Personal consumption expenditures
 (PCE).....................................    108.373    111.493    114.568    112.873    113.445    114.573    115.241    115.012
  Durable goods............................     90.845     90.198     88.974     89.606     89.385     89.206     88.967     88.340
  Nondurable goods.........................    107.617    111.530    114.937    113.177    113.484    115.769    116.442    114.051
  Services.................................    112.863    116.529    120.544    118.281    119.194    120.059    120.960    121.961

Gross private domestic investment..........    106.645    110.284    113.804    111.853    112.860    113.717    113.895    114.743
  Fixed investment.........................    106.811    110.542    114.143    112.194    113.238    114.074    114.224    115.034
    Nonresidential.........................    100.834    103.428    106.332    104.510    105.471    106.266    106.501    107.090
      Structures...........................    120.951    134.647    149.938    141.476    145.684    149.432    151.372    153.262
      Equipment and software...............     94.503     94.134     93.863     93.754     93.887     93.920     93.704     93.941
    Residential............................    120.618    126.714    131.775    129.536    130.765    131.696    131.655    132.986
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............    105.151    108.949    112.581    110.108    110.737    112.400    113.631    113.558

Imports of goods and services..............    104.678    111.268    116.057    114.117    113.918    116.608    118.143    115.559

Government consumption expenditures and
 gross investment..........................    114.718    121.183    126.398    123.444    124.791    126.262    127.150    127.389
  Federal..................................    115.249    120.726    124.881    121.479    123.721    124.871    125.482    125.449
  State and local..........................    114.417    121.463    127.305    124.620    125.434    127.095    128.147    128.544

Addenda:
  PCE excluding food and energy............    107.314    109.559    111.994    110.418    110.983    111.738    112.337    112.919
  Market-based PCE\1\......................    107.393    110.339    113.175    111.647    112.116    113.272    113.879    113.434
  Market-based PCE excluding food
   and energy\1\...........................    105.865    107.713    109.719    108.375    108.810    109.524    110.033    110.510
  Final sales of domestic product..........    109.455    112.783    116.106    114.101    115.025    115.961    116.498    116.938
  Gross domestic purchases.................    109.210    112.981    116.487    114.541    115.313    116.455    117.080    117.100
  Final sales to domestic purchasers.......    109.235    113.021    116.540    114.594    115.371    116.510    117.133    117.144
  Gross national product...................    109.419    112.733      .....    114.038    114.958    115.897    116.440      .....

  Implicit price deflators:
    Gross domestic product.................    109.426    112.737    116.034    114.034    114.951    115.887    116.420    116.857
    Final sales of domestic product........    109.455    112.783    116.102    114.092    115.017    115.952    116.490    116.928
    Gross domestic purchases...............    109.207    112.975    116.466    114.526    115.296    116.435    117.053    117.064
    Final sales to domestic purchasers.....    109.235    113.021    116.532    114.583    115.360    116.499    117.122    117.133
    Gross national product.................    109.416    112.726      .....    114.025    114.942    115.879    116.414      .....
-----------------------------------------------------------------------------------------------------------------------------------
  1. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.  Percentage changes for these series are
included in the addenda to table 8 and in appendix table A.
  See "Explanatory Note" at the end of the tables.

                                               Table 7.--Real Gross Domestic Product: Percent Change from Preceding Year
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           1991    1992    1993    1994    1995    1996    1997    1998    1999    2000    2001    2002    2003    2004    2005    2006
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     -.2     3.3     2.7     4.0     2.5     3.7     4.5     4.2     4.5     3.7      .8     1.6     2.5     3.9     3.2     3.4

Personal consumption expenditures......      .2     3.3     3.3     3.7     2.7     3.4     3.8     5.0     5.1     4.7     2.5     2.7     2.8     3.9     3.5     3.2
  Durable goods........................    -5.6     5.9     7.8     8.4     4.4     7.8     8.6    11.3    11.7     7.3     4.3     7.1     5.8     6.4     5.5     5.1
  Nondurable goods.....................     -.2     2.0     2.7     3.5     2.2     2.6     2.7     4.0     4.6     3.8     2.0     2.5     3.2     3.6     4.5     3.8
  Services.............................     1.7     3.5     2.8     2.9     2.6     2.9     3.3     4.2     4.0     4.5     2.4     1.9     1.9     3.5     2.6     2.5

Gross private domestic investment......    -8.1     8.1     8.9    13.6     3.1     8.9    12.4     9.8     7.8     5.7    -7.9    -2.6     3.6     9.8     5.4     4.6
  Fixed investment.....................    -6.5     5.9     8.6     9.3     6.5     9.0     9.2    10.2     8.3     6.5    -3.0    -5.2     3.4     7.3     7.5     3.0
    Nonresidential.....................    -5.4     3.2     8.7     9.2    10.5     9.3    12.1    11.1     9.2     8.7    -4.2    -9.2     1.0     5.9     6.8     7.4
      Structures.......................   -11.1    -6.0     -.7     1.8     6.4     5.6     7.3     5.1     -.4     6.8    -2.3   -17.1    -4.1     2.2     1.1     9.1
      Equipment and software...........    -2.6     7.3    12.5    11.9    12.0    10.6    13.8    13.3    12.7     9.4    -4.9    -6.2     2.8     7.3     8.9     6.7
    Residential........................    -9.6    13.8     8.2     9.6    -3.2     8.0     1.9     7.6     6.0      .8      .4     4.8     8.4     9.9     8.6    -4.2
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................     6.6     6.9     3.2     8.7    10.1     8.4    11.9     2.4     4.3     8.7    -5.4    -2.3     1.3     9.2     6.8     8.9
    Goods..............................     6.9     7.5     3.3     9.7    11.7     8.8    14.3     2.2     3.8    11.2    -6.1    -4.0     1.8     9.0     7.5    10.5
    Services...........................     6.0     5.5     3.2     6.3     6.3     7.2     5.9     2.9     5.6     2.9    -3.7     1.9      .0     9.7     5.1     5.2
  Imports..............................     -.6     7.0     8.8    11.9     8.0     8.7    13.6    11.6    11.5    13.1    -2.7     3.4     4.1    10.8     6.1     5.8
    Goods..............................     -.1     9.3    10.1    13.3     9.0     9.3    14.4    11.7    12.4    13.5    -3.2     3.7     4.9    10.9     6.7     5.9
    Services...........................    -2.6    -2.6     2.9     5.7     3.3     5.5     9.4    11.4     6.9    11.1     -.3     2.1      .0    10.0     2.8     5.3

Government consumption expenditures
 and gross investment..................     1.1      .5     -.9      .0      .5     1.0     1.9     1.9     3.9     2.1     3.4     4.4     2.5     1.9      .9     2.1
  Federal..............................     -.2    -1.7    -4.2    -3.7    -2.7    -1.2    -1.0    -1.1     2.2      .9     3.9     7.0     6.8     4.3     1.5     2.0
    National defense...................    -1.1    -5.0    -5.6    -4.9    -3.8    -1.4    -2.8    -2.1     1.9     -.5     3.9     7.4     8.7     5.9     1.7     1.9
    Nondefense.........................     2.4     6.9     -.7    -1.2     -.4     -.7     2.6      .7     2.8     3.5     3.9     6.3     3.4     1.2     1.1     2.2
  State and local......................     2.1     2.2     1.4     2.6     2.6     2.3     3.6     3.6     4.7     2.7     3.2     3.1      .2      .5      .5     2.1

Addenda:
  Final sales of domestic product......      .1     3.0     2.6     3.4     3.0     3.7     4.0     4.2     4.5     3.8     1.6     1.2     2.5     3.5     3.5     3.1
  Gross domestic purchases.............     -.8     3.3     3.2     4.4     2.4     3.8     4.8     5.3     5.3     4.4      .9     2.2     2.8     4.4     3.3     3.2
  Final sales to domestic purchasers...     -.6     3.1     3.2     3.8     2.8     3.8     4.3     5.3     5.4     4.5     1.8     1.8     2.8     4.0     3.6     3.0
  Gross national product...............     -.3     3.3     2.7     3.9     2.6     3.7     4.4     4.0     4.6     3.7      .8     1.5     2.7     3.8     3.1   .....
  Real disposable personal income......      .5     3.4     1.0     2.7     2.8     3.0     3.5     5.8     3.0     4.8     1.9     3.1     2.2     3.6     1.2     2.7

  Price indexes:
    Gross domestic purchases...........     3.3     2.3     2.2     2.1     2.1     1.8     1.4      .6     1.6     2.5     2.0     1.6     2.3     3.1     3.5     3.1
    Gross domestic purchases excluding
     food and energy...................     3.5     2.6     2.3     2.2     2.2     1.5     1.3     1.0     1.4     1.9     1.9     1.9     1.9     2.7     2.8     2.7
    GDP................................     3.5     2.3     2.3     2.1     2.0     1.9     1.7     1.1     1.4     2.2     2.4     1.7     2.1     2.8     3.0     2.9
    GDP excluding food and energy......     3.6     2.5     2.4     2.2     2.1     1.7     1.7     1.2     1.5     2.0     2.1     2.1     1.9     2.7     3.0     2.9
    Personal consumption expenditures..     3.6     2.9     2.3     2.1     2.1     2.2     1.7      .9     1.7     2.5     2.1     1.4     2.0     2.6     2.9     2.8
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           I 03   II 03  III 03   IV 03    I 04   II 04  III 04   IV 04    I 05   II 05  III 05   IV 05    I 06   II 06  III 06   IV 06
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     1.5     1.8     3.1     3.7     4.3     4.5     3.4     3.4     3.3     3.1     3.4     3.1     3.7     3.5     3.0     3.4

Personal consumption expenditures
 (PCE).................................     2.0     2.3     3.2     3.4     4.1     3.9     3.5     4.0     3.5     3.8     3.8     2.9     3.4     3.0     2.7     3.7
  Durable goods........................     2.4     5.5     6.7     8.3     9.8     6.1     4.2     5.6     4.7     7.4     7.5     2.5     6.6     3.4     2.8     7.8
  Nondurable goods.....................     2.3     2.5     4.3     3.9     4.0     3.8     2.9     3.8     4.0     4.8     4.7     4.4     4.5     3.6     3.2     3.9
  Services.............................     1.8     1.6     2.0     2.2     3.0     3.5     3.6     3.7     3.0     2.6     2.6     2.3     2.3     2.6     2.5     2.7

Gross private domestic investment......     1.3     1.6     4.4     7.0     8.6    13.2     9.2     8.2     9.0     2.8     3.6     6.3     6.2     7.4     5.9    -1.0
  Fixed investment.....................    -1.0     1.9     5.4     7.2     7.9     8.2     6.7     6.6     8.0     7.7     7.4     6.8     6.9     3.9     2.0     -.6
    Nonresidential.....................    -3.9      .1     2.9     4.9     6.1     5.2     5.5     6.9     8.0     7.4     6.3     5.6     7.4     7.2     8.3     6.8
      Structures.......................   -11.9    -3.9      .1      .2     2.9     1.1     2.0     2.7     3.2     1.0    -1.6     1.8     2.6     8.0    14.1    11.7
      Equipment and software...........     -.9     1.5     3.9     6.6     7.2     6.7     6.7     8.3     9.7     9.8     9.3     7.0     9.2     6.8     6.0     4.8
    Residential........................     5.5     5.7    10.6    11.7    11.4    13.7     9.0     6.1     8.1     8.1     9.1     9.0     6.1    -1.5    -8.1   -12.6
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................     1.1    -1.9      .1     5.8     9.1    11.2     9.6     7.0     6.4     7.2     6.8     6.7     9.0     8.2     9.1     9.2
    Goods..............................     2.0    -1.6     -.1     7.1     8.4    10.4    10.3     7.0     6.6     8.1     7.0     8.3    11.2     9.5    11.0    10.3
    Services...........................    -1.0    -2.4      .5     3.0    10.9    13.2     7.9     7.1     5.9     5.0     6.3     3.1     4.0     5.2     4.9     6.7
  Imports..............................     5.3     3.3     2.8     4.8     8.8    11.7    11.9    10.6     9.0     5.4     4.9     5.2     6.4     6.4     7.2     3.1
    Goods..............................     6.4     4.7     3.2     5.3     9.0    11.2    12.3    11.2     9.8     6.0     5.5     5.8     6.9     6.4     7.5     2.7
    Services...........................      .1    -3.3     1.0     2.2     7.9    14.7    10.1     7.6     4.8     2.5     2.0     1.9     3.7     6.6     5.6     5.2

Government consumption expenditures
 and gross investment..................     2.6     2.9     2.7     1.7     2.8     1.8     1.8     1.1      .8      .5     1.0     1.2     2.1     2.0     1.6     2.8
  Federal..............................     6.3     8.0     7.3     5.5     7.4     3.3     4.4     2.3     1.3      .8     1.9     2.1     3.4     2.1      .1     2.4
    National defense...................     6.3    11.7     9.1     7.5    11.1     3.3     7.0     2.5     1.4     1.6     2.1     1.9     2.9     1.7    -1.3     4.2
    Nondefense.........................     6.5     1.3     4.0     1.9      .6     3.2     -.5     1.8     1.2     -.7     1.5     2.4     4.2     2.9     2.9    -1.3
  State and local......................      .7      .2      .3     -.4      .3     1.0      .3      .4      .5      .3      .5      .8     1.3     1.9     2.4     3.0

Addenda:
  Final sales of domestic product......     1.1     1.8     3.2     3.7     4.2     3.7     3.0     3.1     3.1     3.9     4.0     3.2     3.8     2.9     2.3     3.5
  Gross domestic purchases.............     2.0     2.3     3.3     3.6     4.5     4.9     4.0     4.1     3.8     3.0     3.3     3.1     3.6     3.5     3.0     2.8
  Final sales to domestic purchasers...     1.7     2.4     3.4     3.7     4.4     4.2     3.6     3.8     3.6     3.8     3.8     3.2     3.7     3.0     2.4     2.8
  Gross national product...............     1.6     2.2     3.3     3.9     4.6     4.3     3.3     2.9     3.0     3.0     3.4     3.0     3.6     3.4     2.7   .....
  Real disposable personal income......      .6     1.3     3.3     3.7     4.2     3.6     2.7     4.1     2.1     1.6      .8      .3     2.5     2.0     3.2     3.1

  Price indexes:
    Gross domestic purchases...........     2.6     2.1     2.3     2.2     2.2     3.1     3.2     3.7     3.4     3.2     3.6     3.6     3.5     3.6     3.1     2.2
    Gross domestic purchases excluding
     food and energy...................     1.9     1.8     1.9     1.9     2.1     2.6     2.8     3.0     3.0     2.8     2.8     2.8     2.7     2.9     2.8     2.6
    GDP................................     2.1     2.1     2.2     2.2     2.3     2.9     2.9     3.2     3.1     2.8     3.1     3.1     3.1     3.3     2.9     2.5
    GDP excluding food and energy......     2.0     1.9     1.9     1.9     2.1     2.6     2.9     3.1     3.1     2.9     2.9     3.0     2.9     3.1     2.9     2.6
    PCE................................     2.3     1.8     1.9     1.9     2.0     2.8     2.7     3.0     2.7     2.6     3.1     3.1     3.0     3.3     2.8     1.9
    PCE excluding food and energy......     1.5     1.4     1.3     1.4     1.8     2.1     2.1     2.2     2.2     2.0     2.0     2.1     2.0     2.2     2.4     2.3
    Market-based PCE\1\................     2.3     1.7     1.8     1.6     1.7     2.4     2.3     2.7     2.5     2.4     3.1     3.0     2.9     3.2     2.6     1.6
    Market-based PCE excluding food
     and energy\1\.....................     1.3     1.2     1.1     1.0     1.3     1.5     1.4     1.7     1.8     1.7     1.7     1.8     1.6     1.9     2.0     2.0
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  1. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.

                     Table 9.--Relation of Gross Domestic Product, Gross National Product, and National Income
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2004       2005       2006      IV 05       I 06      II 06     III 06      IV 06
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   11,712.5   12,455.8   13,253.9   12,730.5   13,008.4   13,197.3   13,322.6   13,487.2

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

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

Less: Consumption of fixed capital.........    1,436.2    1,604.8    1,575.4    1,562.5    1,548.0    1,572.8    1,582.0    1,598.6
Less: Statistical discrepancy..............       66.7       71.0      .....       74.3      -61.9       35.8       -5.3      .....

Equals: National income....................   10,255.9   10,811.8      .....   11,106.2   11,551.3   11,611.5   11,762.6      .....
  Compensation of employees................    6,650.3    7,030.3    7,493.1    7,184.4    7,400.3    7,425.5    7,518.1    7,628.4
    Wage and salary accruals...............    5,377.1    5,664.8    6,037.7    5,787.0    5,970.1    5,980.9    6,054.5    6,145.3
    Supplements to wages and salaries......    1,273.2    1,365.5    1,455.4    1,397.4    1,430.3    1,444.5    1,463.6    1,483.1
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      911.1      970.7    1,014.8      996.8    1,008.3    1,011.9    1,014.8    1,024.0
  Rental income of persons with capital
   consumption adjustment..................      127.0       72.8       76.5       81.5       76.8       71.4       78.3       79.4
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................    1,182.6    1,330.7      .....    1,393.5    1,569.1    1,591.8    1,653.3      .....
  Net interest and miscellaneous payments..      485.1      483.4      510.6      490.0      514.8      513.2      498.6      515.8
  Taxes on production and imports less
   subsidies...............................      819.4      865.1      912.1      874.2      897.4      914.0      916.8      920.2
  Business current transfer payments.......       85.5       74.2       93.1       99.1       93.8       93.1       92.8       92.8
  Current surplus of government
   enterprises.............................       -5.0      -15.4       -9.8      -13.3       -9.2       -9.4      -10.2      -10.5

Addendum:
  Gross domestic income....................   11,645.8   12,384.8      .....   12,656.2   13,070.3   13,161.6   13,327.9      .....
-----------------------------------------------------------------------------------------------------------------------------------

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2004       2005       2006      IV 05       I 06      II 06     III 06      IV 06
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    9,731.4   10,239.2   10,897.4   10,483.7   10,721.4   10,807.3   10,964.5   11,096.3

  Compensation of employees, received......    6,665.3    7,030.3    7,493.1    7,184.4    7,400.3    7,425.5    7,518.1    7,628.4
    Wage and salary disbursements..........    5,392.1    5,664.8    6,037.7    5,787.0    5,970.1    5,980.9    6,054.5    6,145.3
    Supplements to wages and salaries......    1,273.2    1,365.5    1,455.4    1,397.4    1,430.3    1,444.5    1,463.6    1,483.1
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      911.1      970.7    1,014.8      996.8    1,008.3    1,011.9    1,014.8    1,024.0
    Farm...................................       36.2       30.2       22.8       28.7       23.9       17.5       21.7       28.3
    Nonfarm................................      874.9      940.4      991.9      968.1      984.4      994.3      993.2      995.8
  Rental income of persons with capital
   consumption adjustment..................      127.0       72.8       76.5       81.5       76.8       71.4       78.3       79.4
  Personal income receipts on assets.......    1,427.9    1,519.4    1,657.6    1,580.2    1,602.3    1,647.7    1,683.6    1,696.9
    Personal interest income...............      890.8      945.0    1,018.1      981.7      989.1    1,019.2    1,035.8    1,028.2
    Personal dividend income...............      537.1      574.4      639.6      598.5      613.2      628.5      647.8      668.8
  Personal current transfer receipts.......    1,426.5    1,526.6    1,602.1    1,539.8    1,570.4    1,589.7    1,618.6    1,629.4

  Less: Contributions for government
   social insurance........................      826.4      880.6      946.6      898.9      936.7      938.8      948.9      961.8

Less: Personal current taxes...............    1,049.8    1,203.1    1,362.6    1,247.6    1,332.6    1,361.0    1,366.2    1,390.5

Equals: Disposable personal income.........    8,681.6    9,036.1    9,534.8    9,236.1    9,388.8    9,446.2    9,598.3    9,705.8

Less: Personal outlays.....................    8,507.2    9,070.9    9,626.8    9,264.5    9,418.5    9,577.0    9,710.0    9,801.8

Equals: Personal saving....................      174.3      -34.8      -92.0      -28.5      -29.7     -130.8     -111.7      -96.0

  Personal saving as a percentage of
   disposable personal income..............        2.0        -.4       -1.0        -.3        -.3       -1.4       -1.2       -1.0

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    8,010.8    8,104.6    8,322.7    8,183.3    8,276.8    8,245.4    8,329.6    8,439.6
-----------------------------------------------------------------------------------------------------------------------------------
  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.

                      Appendix Table A.--Real Gross Domestic Product and Related Aggregates and Price Indexes: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2004   2005   2006   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06  II 06 III 06  IV 06
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................    3.9    3.2    3.4    1.2    3.5    7.5    2.7    3.9    4.0    3.1    2.6    3.4    3.3    4.2    1.8    5.6    2.6    2.0    3.5

  Goods.............................    4.9    4.6    6.4    3.9    1.6   16.2    2.5    3.7    3.0    5.0    4.6    4.9    3.5    6.7    3.1   12.8    3.6    3.8    7.9
  Services..........................    3.2    2.3    2.3     .1    3.6    1.9    2.8    4.5    3.0    2.5    2.5    1.8    1.8    3.5     .8    2.4    2.4    2.8    3.5
  Structures........................    5.2    4.6     .6   -1.0    9.2   14.1    2.2     .5   13.6     .6   -2.7    8.0   11.1     .7    3.1    2.9     .3   -7.4   -8.6

  Motor vehicle output..............    3.5    5.9   -1.7  -11.8   10.9    8.9   -6.5    9.9   -7.1   16.6    1.9   12.0    -.7   22.6  -19.1    3.8   -9.4   27.4  -31.7
  GDP excuding motor vehicle
   output...........................    3.9    3.1    3.6    1.7    3.2    7.4    3.0    3.6    4.5    2.7    2.6    3.1    3.4    3.6    2.6    5.6    3.0    1.2    4.8

  Final sales of computers\1\.......    8.2   24.5   17.1   16.9   -2.5   90.4   20.0  -16.0  -17.4   23.0   42.8   24.3   31.5   11.6   33.8    9.5    6.7   11.7   46.7
  GDP excluding final sales of
   computers........................    3.9    3.1    3.3    1.1    3.5    7.0    2.5    4.0    4.2    3.0    2.4    3.3    3.1    4.1    1.6    5.6    2.5    1.9    3.2

  Farm gross value added\2\.........    7.4    1.0    4.6  -16.1   26.6  -34.7  -36.1  120.0  -17.4   19.4   23.7   -2.0  -24.6   11.3    8.1   14.1    3.9   -2.0   -4.4

  Nonfarm business gross value
   added\3\.........................    4.3    3.8    3.9    1.2    4.3   11.0    1.6    3.6    5.2    3.2    2.4    4.2    4.4    4.9    1.8    6.7    2.7    1.9    4.2

Price indexes:
  GDP...............................    2.8    3.0    2.9    3.1    1.3    2.1    2.2    3.7    3.7    2.1    3.2    3.5    2.4    3.3    3.3    3.3    3.3    1.9    1.5
  GDP excluding food and energy.....    2.7    3.0    2.9    2.7    1.1    1.7    2.1    3.4    3.4    2.6    3.1    3.4    2.4    2.8    3.3    3.1    3.0    2.2    2.3
  GDP excluding final sales of
   computers........................    2.9    3.2    3.1    3.3    1.4    2.2    2.3    3.8    3.7    2.2    3.4    3.7    2.6    3.4    3.4    3.4    3.5    2.0    1.6

  Gross domestic purchases..........    3.1    3.5    3.1    4.1     .6    2.2    1.9    4.3    4.1    2.6    3.6    3.2    3.3    4.4    3.5    2.7    4.0    2.2     .1
  Gross domestic purchases excluding
   food and energy..................    2.7    2.8    2.7    2.6    1.3    1.8    2.0    3.5    3.3    2.5    2.9    3.4    2.3    2.5    3.0    3.0    2.9    2.2    2.3
  Gross domestic purchases excluding
   final sales of computers to
   domestic purchasers..............    3.2    3.7    3.3    4.4     .7    2.4    2.0    4.4    4.2    2.8    3.8    3.4    3.5    4.6    3.7    2.9    4.2    2.3     .2

  Personal consumption expenditures
   (PCE)............................    2.6    2.9    2.8    3.1     .7    2.4    1.5    3.7    3.6    1.9    3.0    2.3    3.1    4.1    2.9    2.0    4.0    2.4    -.8
  Personal consumption expenditures
   excluding food and energy........    2.0    2.1    2.2    1.1    1.3    1.8    1.6    2.5    2.5    1.7    2.3    2.4    1.9    1.6    2.5    2.1    2.7    2.2    2.1
  Market-based PCE\4\...............    2.3    2.7    2.6    3.1     .3    2.2     .9    3.3    3.4    1.5    2.9    2.1    3.1    4.3    2.5    1.7    4.2    2.2   -1.6
  Market-based PCE excluding food
   and energy\4\....................    1.5    1.7    1.9     .7    1.0    1.4     .9    1.7    1.9    1.2    1.8    2.2    1.7    1.2    1.9    1.6    2.7    1.9    1.7
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  1. Some components of final sales of computers include
computer parts.
  2. Farm output less intermediate goods and services purchased.
  3. Consists of GDP less gross value added of farm, of
households and institutions, and of general government.
  4. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.
  See "Explanatory Note" at the end of the tables.



     Explanatory Note: NIPA Measures of Quantities and Prices


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

     Annual changes in quantities and prices are calculated using a Fisher formula that incorporates
weights from two adjacent years.  (Quarterly changes in quantities and prices are calculated using a
Fisher formula that incorporates weights from two adjacent quarters; quarterly indexes are adjusted for
consistency to the annual indexes before percent changes are calculated.)  For example, the 2004-05
annual percent change in real GDP uses prices for 2004 and 2005 as weights, and the 2004-05 annual
percent change in GDP prices uses quantities for 2004 and 2005 as weights.  These annual changes are
"chained" (multiplied) together to form time series of quantity and price indexes.  Percent changes in
Fisher indexes are not affected by the choice of reference year.  (BEA also publishes a measure of the
price level known as the implicit price deflator (IPD), which is calculated as the ratio of the
current-dollar value to the corresponding chained-dollar value, multiplied by 100.  The values of the IPD
are very close to the values of the corresponding "chain-type" price index.)

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

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

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

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