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Technical Note
Gross Domestic Product, 2nd quarter 2011 (second estimate)
Corporate Profits, 2nd quarter 2011 (preliminary estimate)
August 26, 2011
This technical note provides background information about the source data and estimating methods used to
produce the estimates presented in the GDP news release.  The complete set of estimates for the second
quarter is available on BEA's Web site at www.bea.gov; a brief summary of "highlights" is also posted
on the Web site.  In a few weeks, the estimates will be published in BEA's monthly journal, the Survey
of Current Business, along with a more detailed analysis of the estimates ("GDP and the Economy").

Sources of Revision to Real GDP

Real GDP increased 1.0 percent (annual rate) in the second quarter, a downward revision of 0.3 percentage
point from the advance estimate.  Downward revisions to inventory investment and to exports were partly
offset by upward revisions to nonresidential fixed investment and to consumer spending.

*       The downward revision to inventory investment reflected newly available and revised Census Bureau
        inventory data for June for manufacturing, wholesale trade, and retail trade industries.
*       The downward revision to exports reflected newly available Census goods data for June and revised
        data for May.
*       The upward revision to nonresidential fixed investment reflected upward revisions to nonresidential
        structures and to equipment and software.  The revision to structures was based on newly available
        Census construction spending data for June and revised data for April and May.  The revision to
        equipment and software was based on newly available software company revenue data for the second
        quarter, newly available Census imports and exports data for June, and revised Census manufacturing
        shipments data for June.
*       The upward revision to consumer spending was to services and reflected upward revisions to financial
        services and insurance and to health care.  The revision to financial services was based on newly
        available second-quarter and revised first-quarter Federal Reserve Board tabulations of Call Report
        data, and the revision to health care was based on revised BLS data on employment, hours, and earnings.

The price index for gross domestic purchases increased 3.3 percent in the second quarter, an upward revision
of 0.1 percentage point.  The upward revision to prices was primarily to personal consumption expenditures
and reflected an upward revision to the price for financial services based on Call Report data.

Revisions to Wages and Salaries and Disposable Personal Income

In addition to presenting revised estimates for the second quarter, today's release also presents revised
estimates of first-quarter wages and salaries, personal taxes, and contributions for government social
insurance.  Wage and salary disbursements are now estimated to have increased $101.2 billion in the first
quarter of 2011, an upward revision of $18.4 billion.  These estimates reflect newly available wage and
salary tabulations for the first quarter from the BLS quarterly census of employment and wages (QCEW).
(Last month’s estimate reflected BLS wage and salary tabulations for 16 states.)  These data are more
comprehensive than the monthly employment and earnings data that were used for the earlier estimates—the
QCEW data include irregular pay, such as bonuses and gains from the exercise of stock options.

Real disposable personal income is now estimated to have increased 1.2 percent in the first quarter and
1.0 percent in the second.  (By comparison, the estimates that were available last month showed increases
of 0.7 percent in both the first and second quarters.)

Brent R. Moulton
Associate Director for National Economic Accounts
Bureau of Economic Analysis
(202) 606-9606