FOR WIRE TRANSMISSION: 8:30 A.M. EDT, THURSDAY, AUGUST 27, 1998 Virginia H. Mannering: (202) 606-5304 (GDP) BEA 98-26 Kenneth A. Petrick: 606-9738 (Profits) Recorded message: 606-5306 GROSS DOMESTIC PRODUCT: SECOND QUARTER 1998 (PRELIMINARY) CORPORATE PROFITS: SECOND QUARTER 1998 (PRELIMINARY) Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 1.6 percent in the second quarter of 1998, according to preliminary estimates released by the Commerce Department's Bureau of Economic Analysis. In the first quarter, real GDP increased 5.5 percent. Real GDP increased $30.2 billion in the second quarter, following an increase of $100.1 billion in the first. The GDP estimates released today are based on more complete source data than were available for the advance estimates issued last month. In the advance estimates, the increase in real GDP was 1.4 percent (see "Revisions" on page 3). The major contributors to the increase in real GDP in the second quarter were: Personal consumption expenditures, producers' durable equipment, government spending, and residential structures. The contributions of these components were partially offset by a decrease in inventory investment, an increase in imports of goods and services, and a decrease in exports of goods and services. The deceleration in real GDP in the second quarter primarily reflected a sharp downturn in inventory investment and a deceleration in producers' durable equipment. The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 0.4 percent in the second quarter, in contrast to a decrease of 0.2 percent in the first. Real personal consumption expenditures increased 5.8 percent in the second quarter, compared with an increase of 6.1 percent in the first. Real nonresidential fixed investment increased 12.6 percent in the second quarter, compared with an increase of 22.2 percent in the first. Nonresidential structures decreased 1.6 percent, compared with a decrease of 4.9 percent. Producers' durable equipment increased 18.1 percent, compared with an increase of 34.3 percent. Real residential fixed investment increased 14.8 percent, compared with an increase of 15.6 percent. Real exports of goods and services decreased 7.4 percent in the second quarter, compared with a decrease of 2.8 percent in the first. Real imports of goods and services increased 10.0 percent, compared with an increase of 15.7 percent. Real federal government consumption expenditures and gross investment increased 6.6 percent in the second quarter, in contrast to a decrease of 8.8 percent in the first. National defense increased 9.5 percent, in contrast to a decrease of 18.5 percent. Nondefense increased 1.5 percent, compared with an increase of 13.1 percent. Real state and local government consumption expenditures and gross investment increased 2.1 percent, the same increase as in the first quarter. The real change in business inventories subtracted 2.6 percentage points from the second-quarter change in real GDP, after adding 1.2 percentage points to the first-quarter change. Businesses increased inventories $39.1 billion in the second quarter, following increases of $91.4 billion in the first quarter and $66.5 billion in the fourth. Real final sales of domestic product -- GDP less change in business inventories -- increased 4.4 percent in the second quarter, compared with an increase of 4.3 percent in the first. Gross domestic purchases Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 3.8 percent in the second quarter, compared with an increase of 7.8 percent in the first. Gross national product Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- increased 1.6 percent in the second quarter, compared with an increase of 5.8 percent in the first. GNP includes, and GDP excludes, net receipts of factor income from the rest of the world. Current-dollar GDP Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 2.5 percent, or $51.0 billion, in the second quarter. In the first quarter, current-dollar GDP increased 6.4 percent, or $129.7 billion. Revisions The preliminary estimate of the second-quarter increase in real GDP is 0.2 percentage point, or $3.9 billion, higher than the advance estimate issued last month. The upward revision to the percentage change in real GDP primarily reflected a downward revision to imports ($5.0 billion), an upward revision to personal consumption expenditures (PCE) for services ($2.4 billion), and several other smaller upward revisions that more than offset downward revisions to nonfarm change in business inventories ($5.9 billion) and to PCE for nondurable goods ($3.4 billion). The preliminary estimate of the second-quarter increase in the price index for gross domestic purchases is 0.4 percent, the same as in the advance estimate. Advance Preliminary (Percent change from preceding quarter) Real GDP............................... 1.4 1.6 Current-dollar GDP..................... 2.3 2.5 Gross domestic purchases price index... .4 .4 Corporate Profits Profits from current production (profits before tax with inventory valuation and capital consumption adjustments) decreased $9.5 billion in the second quarter, according to the preliminary estimates. In the first quarter, profits increased $8.4 billion. Current-production cash flow (net cash flow with inventory valuation and capital consumption adjustments) -- the internal funds available to corporations for investment -- decreased $5.1 billion in the second quarter, in contrast to an increase of $21.9 billion in the first. Domestic profits of financial corporations increased $1.8 billion in the second quarter, the same increase as in the first. Domestic profits of nonfinancial corporations decreased $11.3 billion in the second quarter, in contrast to no change in the first. In the second quarter, real gross corporate product increased, and profits per unit of real product decreased. The decrease in unit profits reflected increases in both unit labor and nonlabor costs. The foreign component of profits was unchanged in the second quarter; it increased $6.6 billion in the first. Profits from the rest of the world is calculated as (1) receipts by U.S. residents of earnings from their foreign affiliates plus dividends received by U.S. residents from unaffiliated foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign parents plus dividends paid by U.S. corporations to unaffiliated foreign residents. Profits before tax with inventory valuation adjustment is the best available measure of industry profits because estimates of the capital consumption adjustment by industry do not exist. According to this measure, the decrease in the profits of nonfinancial corporations was largely in the transportation and public utilities group, in "other" nonmanufacturing, and in nondurable manufacturing. Profits before tax increased $1.4 billion in the second quarter, in contrast to a decrease of $17.3 billion in the first. The before-tax measure of profits does not reflect, as does profits from current production, the capital consumption and inventory valuation adjustments; these adjustments convert depreciation and inventories reported by business to the measures used in the national income and product accounts. The capital consumption adjustment increased $4.5 billion in the second quarter (from $84.9 billion to $89.4 billion), compared with an increase of $4.8 billion in the first. The inventory valuation adjustment decreased $15.5 billion (from $25.3 billion to $9.8 billion), in contrast to an increase of $21.0 billion. Profits tax liability increased $0.1 billion in the second quarter, in contrast to a decrease of $9.4 billion in the first. Profits after tax increased $1.3 billion, in contrast to a decrease of $7.9 billion. Dividends increased $0.8 billion, compared with an increase of $0.9 billion; undistributed profits increased $0.6 billion, in contrast to a decrease of $8.8 billion. BEA's major national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available on BEA's web site: http://www.bea.gov STAT-USA maintains an electronic bulletin board (EBB) and an Internet site, which contain BEA estimates, BEA news releases, and the Survey of Current Business. The information available through STAT-USA is often more detailed and more timely than that available from other sources. To subscribe to STAT-USA's World Wide Web system, go to http://www.stat-usa.gov. Subscriptions for single-user unlimited access to STAT-USA's Internet information are $50.00 for 3 months or $150.00 for 1 year. For further information, call (202) 482-1986. Summary BEA estimates are available on recorded messages at the time of public release at the following telephone numbers: (202) 606-5306 Gross domestic product 606-5303 Personal income and outlays 606-5362 Summary of international transactions Most of BEA's estimates and analyses appear in the Survey of Current Business, BEA's monthly journal. The Survey of Current Business is available from the Superintendent of Documents, U.S. Government Printing Office, Washington D.C. 20402. First class mail: Annual subscription $88.00 domestic. Second class mail: Annual subscription $39.00 domestic, $48.75 foreign; single issue $14.00 domestic, $17.50 foreign. * * * Next release -- September 24, 1998, at 8:30 A.M. EDT for: Gross Domestic Product: Second Quarter 1998 (Final) Corporate Profits: Second Quarter 1998 (Revised) Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period [Percent; quarters seasonally adjusted at annual rates] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1995 1996 1997 III 94 IV 94 I 95 II 95 III 95 IV 95 I 96 II 96 III 96 IV 96 I 97 II 97 III 97 IV 97 I 98 II 98r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP). 2.3 3.4 3.9 1.8 3.6 1.7 .4 3.3 2.8 3.3 6.1 2.1 4.2 4.2 4.0 4.2 3.0 5.5 1.6 Personal consumption expenditures... 2.7 3.2 3.4 2.3 3.2 1.9 3.4 2.6 2.3 3.7 4.7 1.8 2.9 4.3 1.6 6.2 2.8 6.1 5.8 Durable goods..................... 5.0 6.3 6.8 4.3 11.0 -1.0 5.9 8.3 4.8 5.8 12.7 -1.9 7.2 12.3 -1.5 16.8 3.1 15.8 11.1 Nondurable goods.................. 2.0 2.4 2.4 2.2 2.7 2.3 1.6 .7 2.0 2.2 4.8 1.2 2.9 3.6 -.2 5.1 -.4 7.4 5.0 Services.......................... 2.5 3.0 3.2 2.0 1.9 2.3 3.8 2.4 1.9 4.0 3.0 3.0 2.0 3.1 3.2 4.7 4.3 3.5 5.2 Gross private domestic investment... 2.1 8.8 11.3 -6.1 13.3 4.3 -11.9 .6 9.3 9.8 18.0 18.0 -.7 15.3 20.3 1.5 8.9 28.3 -4.5 Fixed investment.................. 5.5 8.8 8.3 4.2 7.0 8.2 .3 3.4 7.3 12.0 13.3 9.3 5.1 5.9 11.8 12.0 3.6 20.4 13.2 Nonresidential.................. 9.6 9.3 10.7 7.7 12.6 16.0 6.9 .9 6.1 13.1 11.0 14.2 8.8 7.0 14.0 17.0 1.8 22.2 12.6 Structures.................... 4.8 5.0 7.1 -1.1 2.3 10.7 5.1 -.4 -3.8 6.4 7.4 8.9 24.5 3.9 -6.2 12.4 .9 -4.9 -1.6 Producers' durable equipment.. 11.5 10.9 12.1 11.4 16.9 18.1 7.6 1.4 10.1 15.7 12.3 16.2 3.2 8.3 22.8 18.8 2.2 34.3 18.1 Residential..................... -3.8 7.4 2.5 -3.1 -5.0 -8.8 -15.0 10.1 10.6 9.3 19.5 -1.7 -3.9 3.1 6.1 -.4 8.2 15.6 14.8 Change in business inventories (CBI)............................ ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports........................... 11.3 8.5 12.8 10.6 14.7 9.2 5.4 17.8 10.2 3.7 5.8 2.1 32.0 8.3 15.5 10.6 4.4 -2.8 -7.4 Goods........................... 12.5 9.7 15.4 14.4 18.1 9.2 6.4 16.1 11.8 6.9 4.0 7.6 28.9 15.2 17.1 12.5 7.9 -3.4 -11.7 Services........................ 8.2 5.6 6.6 2.0 6.9 9.1 2.9 21.7 6.4 -4.0 10.3 -9.9 39.8 -6.7 11.8 5.9 -4.0 -1.2 3.6 Imports........................... 8.8 9.2 13.9 13.1 9.9 9.8 7.2 2.0 3.5 13.1 13.5 13.6 7.0 18.6 17.9 13.5 6.3 15.7 10.0 Goods........................... 9.6 10.0 14.7 16.0 12.2 7.9 9.3 1.8 3.1 13.8 15.4 14.3 8.7 18.8 19.4 13.1 6.4 17.0 11.7 Services........................ 4.9 5.4 9.9 -.4 -.9 20.5 -3.3 3.1 5.5 9.2 4.3 9.9 -1.1 17.8 10.6 15.8 5.8 9.3 1.8 Government consumption expenditures and gross investment............... .2 1.1 1.3 8.2 -3.8 .1 1.2 -.8 -4.1 3.2 7.1 -1.6 .0 2.1 2.1 1.4 .1 -1.9 3.6 Federal........................... -3.3 -1.1 -1.6 13.3 -11.3 -2.6 -2.0 -2.6 -14.7 8.0 8.1 -4.7 -6.3 -2.7 3.6 -1.2 -2.1 -8.8 6.6 National defense................ -4.0 -1.3 -3.2 13.8 -18.6 -1.6 .1 -5.4 -12.5 7.2 8.1 -6.3 -8.3 -9.9 9.1 -1.8 -2.0 -18.5 9.5 Nondefense...................... -1.8 -.5 1.7 12.2 6.5 -4.6 -6.2 3.3 -19.2 9.9 8.1 -1.3 -2.0 13.3 -6.4 -.1 -2.3 13.1 1.5 State and local................... 2.4 2.4 3.1 5.1 1.2 1.8 3.2 .4 2.8 .5 6.5 .3 3.8 4.9 1.3 2.9 1.3 2.1 2.1 Addenda: Final sales of domestic product (GDP less CBI)................... 2.8 3.4 3.5 3.3 2.7 2.2 2.3 3.7 2.5 3.6 5.4 .9 5.1 2.9 2.7 5.8 2.1 4.3 4.4 Gross domestic purchases.......... 2.1 3.6 4.2 2.1 3.2 1.9 .7 1.7 2.0 4.5 7.0 3.4 1.8 5.5 4.4 4.6 3.2 7.8 3.8 Final sales to domestic purchasers....................... 2.6 3.6 3.7 3.7 2.4 2.4 2.6 2.1 1.8 4.7 6.3 2.2 2.7 4.1 3.1 6.2 2.4 6.6 6.5 Gross national product (GNP)...... 2.4 3.4 3.7 1.6 3.4 2.7 .6 2.6 3.5 3.3 5.7 1.6 4.5 3.6 4.1 3.8 2.4 5.8 1.6 Disposable personal income........ 2.8 2.8 2.8 2.9 4.8 2.6 -.6 2.7 3.9 2.9 2.1 4.4 1.3 3.3 2.9 2.4 2.9 4.0 2.9 Current-dollar measures: GDP............................. 4.6 5.4 5.9 4.4 6.4 4.3 2.3 5.3 4.9 5.7 7.3 3.9 6.1 7.2 5.6 5.4 4.2 6.4 2.5 Final sales of domestic product (GDP less CBI)................. 5.1 5.4 5.4 6.1 5.5 4.8 4.2 5.8 4.6 6.0 6.7 2.8 7.0 5.8 4.4 7.0 3.3 5.3 5.2 Gross domestic purchases........ 4.5 5.4 5.8 5.3 5.8 4.2 3.0 3.3 3.9 6.6 8.3 5.1 4.1 7.8 5.2 5.8 4.3 7.6 4.2 Final sales to domestic purchasers..................... 5.0 5.4 5.4 6.9 4.9 4.6 4.9 3.8 3.7 7.0 7.6 3.9 5.0 6.5 4.0 7.3 3.5 6.5 7.0 GNP............................. 4.8 5.3 5.6 4.2 6.1 5.3 2.5 4.5 5.5 5.6 7.0 3.5 6.4 6.5 5.6 5.0 3.6 6.7 2.4 Disposable personal income...... 5.1 4.9 4.7 6.7 7.6 4.3 1.7 4.7 5.6 5.2 4.6 6.0 3.8 5.9 4.0 3.8 4.0 4.0 3.9 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r revised See "Explanatory Note" at the end of the tables. Table 2.--Contributions to Percent Change in Real Gross Domestic Product [Percent; quarters seasonally adjusted at annual rates] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1995 1996 1997 III 94 IV 94 I 95 II 95 III 95 IV 95 I 96 II 96 III 96 IV 96 I 97 II 97 III 97 IV 97 I 98 II 98r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Percent change at annual rate: Gross domestic product.......... 2.3 3.4 3.9 1.8 3.6 1.7 .4 3.3 2.8 3.3 6.1 2.1 4.2 4.2 4.0 4.2 3.0 5.5 1.6 Percentage points at annual rates: Personal consumption expenditures. 1.81 2.17 2.31 1.58 2.18 1.25 2.26 1.77 1.57 2.50 3.21 1.26 1.97 2.91 1.08 4.19 1.88 4.09 3.93 Durable goods................... .41 .52 .56 .35 .87 -.09 .47 .66 .39 .48 1.03 -.16 .58 .98 -.13 1.30 .26 1.23 .90 Nondurable goods................ .41 .48 .49 .45 .54 .45 .31 .15 .41 .45 .96 .24 .57 .71 -.04 1.00 -.08 1.41 .95 Services........................ .99 1.18 1.26 .77 .75 .88 1.46 .95 .77 1.57 1.20 1.18 .81 1.20 1.26 1.85 1.70 1.40 2.05 Gross private domestic investment. .30 1.26 1.65 -.92 1.84 .63 -1.79 .09 1.26 1.33 2.45 2.48 -.12 2.17 2.92 .23 1.34 4.07 -.74 Fixed investment................ .75 1.21 1.18 .56 .93 1.09 .05 .47 1.00 1.65 1.83 1.29 .72 .83 1.63 1.66 .48 2.82 1.92 Nonresidential................ .91 .92 1.08 .70 1.14 1.47 .67 .10 .61 1.29 1.09 1.37 .88 .71 1.39 1.67 .16 2.21 1.32 Structures.................. .13 .14 .20 -.03 .06 .27 .14 -.01 -.11 .17 .20 .24 .64 .11 -.19 .35 .03 -.15 -.05 Producers' durable equipment .78 .78 .88 .73 1.08 1.19 .54 .11 .71 1.12 .89 1.12 .24 .59 1.58 1.32 .13 2.36 1.37 Residential................... -.16 .29 .10 -.13 -.21 -.37 -.62 .37 .40 .36 .73 -.07 -.16 .12 .24 -.02 .32 .60 .59 Change in business inventories.. -.45 .04 .47 -1.47 .90 -.46 -1.84 -.39 .25 -.32 .61 1.17 -.83 1.33 1.27 -1.41 .85 1.22 -2.62 Net exports of goods and services. .14 -.19 -.27 -.39 .34 -.17 -.26 1.60 .70 -1.10 -.94 -1.33 2.35 -1.24 -.45 -.47 -.30 -2.24 -2.13 Exports......................... 1.17 .95 1.43 1.04 1.45 .91 .54 1.81 1.10 .43 .65 .23 3.22 .95 1.76 1.22 .53 -.33 -.89 Goods......................... .92 .76 1.21 .98 1.24 .64 .45 1.16 .89 .57 .33 .57 2.06 1.19 1.37 1.02 .67 -.29 -1.00 Services...................... .25 .18 .22 .06 .21 .27 .09 .64 .21 -.14 .33 -.34 1.14 -.24 .38 .20 -.14 -.04 .12 Imports......................... -1.03 -1.13 -1.71 -1.43 -1.11 -1.09 -.80 -.20 -.40 -1.54 -1.60 -1.58 -.85 -2.21 -2.21 -1.69 -.83 -1.94 -1.26 Goods......................... -.94 -1.02 -1.51 -1.44 -1.13 -.72 -.87 -.14 -.29 -1.36 -1.52 -1.38 -.88 -1.87 -1.99 -1.38 -.71 -1.75 -1.23 Services...................... -.10 -.11 -.20 .01 .02 -.37 .07 -.06 -.11 -.18 -.09 -.19 .02 -.34 -.21 -.31 -.12 -.19 -.04 Government consumption expenditures and gross investment .03 .20 .24 1.52 -.75 .02 .22 -.15 -.78 .59 1.28 -.30 .00 .37 .38 .25 .02 -.34 .63 Federal......................... -.24 -.08 -.11 .93 -.89 -.18 -.14 -.19 -1.10 .53 .54 -.33 -.44 -.18 .23 -.08 -.14 -.57 .40 National defense.............. -.20 -.06 -.15 .66 -1.03 -.08 .01 -.27 -.63 .32 .37 -.30 -.39 -.46 .38 -.08 -.09 -.84 .37 Nondefense.................... -.04 -.01 .04 .27 .15 -.11 -.14 .08 -.48 .20 .17 -.03 -.05 .27 -.15 .00 -.05 .26 .03 State and local................. .28 .28 .35 .58 .14 .21 .36 .05 .33 .06 .74 .04 .44 .55 .15 .33 .15 .24 .23 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r revised See "Explanatory Note" at the end of the tables. Table 3.--Gross Domestic Product and Related Measures: Level and Change From Preceding Period ------------------------------------------------------------------------------------------------------------------------------------------------------------- Billions of current dollars Billions of chained (1992) dollars ------------------------------------------------ ---------------------------------------------------------------------- Seasonally adjusted Seasonally adjusted Change from preceding at annual rates at annual rates period --------------------------------------- --------------------------------------- ---------------------- 1997 II 97 III 97 IV 97 I 98 II 98r 1997 II 97 III 97 IV 97 I 98 II 98r 1997 I 98 II 98r ------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP).... 8,110.9 8,063.4 8,170.8 8,254.5 8,384.2 8,435.2 7,269.8 7,236.5 7,311.2 7,364.6 7,464.7 7,494.9 275.0 100.1 30.2 Personal consumption expenditures.... 5,493.7 5,438.8 5,540.3 5,593.2 5,676.5 5,770.6 4,913.5 4,872.7 4,947.0 4,981.0 5,055.1 5,127.3 161.1 74.1 72.2 Durable goods...................... 673.0 659.9 681.2 682.2 705.1 719.9 668.6 653.8 679.6 684.8 710.3 729.1 42.5 25.5 18.8 Motor vehicles and parts......... 269.5 260.7 274.5 271.6 277.0 288.8 239.3 230.8 244.4 242.7 247.8 258.9 4.3 5.1 11.1 Furniture and household equipment....................... 271.4 269.2 273.8 276.0 288.5 288.6 307.7 303.7 312.7 318.1 335.8 339.0 30.2 17.7 3.2 Other............................ 132.1 130.0 132.8 134.6 139.6 142.4 127.7 125.9 128.5 130.8 135.1 138.6 10.6 4.3 3.5 Nondurable goods................... 1,600.6 1,588.2 1,611.3 1,613.2 1,633.1 1,654.0 1,486.3 1,477.1 1,495.7 1,494.3 1,521.2 1,539.7 35.4 26.9 18.5 Food............................. 780.9 775.8 785.3 787.1 796.9 809.5 699.3 697.3 700.6 699.9 706.8 715.7 6.7 6.9 8.9 Clothing and shoes............... 278.0 275.6 280.9 280.7 291.0 295.2 288.4 283.3 291.9 292.3 307.4 311.3 12.3 15.1 3.9 Gasoline and oil................. 126.5 123.7 125.7 125.9 116.2 111.3 117.9 118.3 118.4 118.1 118.5 118.1 1.9 .4 -.4 Fuel oil and coal................ 11.2 11.5 11.2 10.7 9.5 9.8 10.3 10.4 10.7 10.1 9.2 9.7 -.9 -.9 .5 Other............................ 403.9 401.5 408.1 408.8 419.4 428.1 373.0 369.9 377.0 376.8 383.5 389.0 16.3 6.7 5.5 Services........................... 3,220.1 3,190.7 3,247.9 3,297.8 3,338.2 3,396.8 2,761.5 2,743.6 2,775.4 2,804.8 2,829.3 2,865.3 84.8 24.5 36.0 Housing.......................... 829.8 824.0 835.4 847.0 859.1 871.9 717.4 715.1 719.5 723.9 728.7 732.7 16.5 4.8 4.0 Household operation.............. 327.3 323.6 330.4 337.0 327.6 337.9 301.3 297.8 305.0 311.1 306.3 315.2 9.9 -4.8 8.9 Electricity and gas............ 126.2 125.4 127.0 129.2 116.8 123.3 116.0 116.0 117.2 118.4 110.5 116.6 -2.0 -7.9 6.1 Other household operation...... 201.1 198.1 203.4 207.8 210.9 214.5 185.1 181.6 187.7 192.5 195.6 198.4 11.8 3.1 2.8 Transportation................... 240.3 238.4 242.2 246.3 249.5 253.6 212.2 210.7 213.7 215.9 217.9 222.5 11.7 2.0 4.6 Medical care..................... 843.4 837.7 848.7 857.9 871.5 883.6 701.7 698.6 704.2 709.4 714.9 720.7 15.1 5.5 5.8 Other............................ 979.3 967.1 991.3 1,009.5 1,030.5 1,049.8 830.5 823.0 834.8 846.6 862.9 876.3 31.9 16.3 13.4 Gross private domestic investment.... 1,256.0 1,259.9 1,265.7 1,292.0 1,366.6 1,344.6 1,206.4 1,211.3 1,215.8 1,241.9 1,321.8 1,306.8 122.3 79.9 -15.0 Fixed investment................... 1,188.6 1,176.4 1,211.1 1,220.1 1,271.1 1,304.4 1,138.0 1,127.0 1,159.3 1,169.5 1,224.9 1,263.5 87.4 55.4 38.6 Nonresidential................... 860.7 850.5 882.3 882.8 921.3 941.4 859.4 848.2 882.2 886.2 931.9 959.9 82.8 45.7 28.0 Structures..................... 240.2 234.3 243.8 246.4 245.0 245.6 203.2 199.3 205.2 205.7 203.1 202.3 13.5 -2.6 -.8 Nonresidential buildings, including farm.............. 177.3 172.9 180.0 178.9 180.6 181.9 150.5 147.8 152.0 149.5 150.1 149.9 9.5 .6 -.2 Utilities.................... 33.5 33.4 34.1 34.1 34.2 34.8 28.7 28.6 29.1 29.2 29.2 29.7 .9 .0 .5 Mining exploration, shafts, and wells................... 22.7 22.2 23.8 24.3 23.5 22.5 17.9 17.6 18.6 18.9 17.9 17.1 2.6 -1.0 -.8 Other structures............. 6.7 5.8 6.1 9.2 6.6 6.5 5.8 5.1 5.2 7.8 5.6 5.5 .3 -2.2 -.1 Producers' durable equipment... 620.5 616.2 638.5 636.4 676.3 695.8 660.9 653.8 682.6 686.4 738.8 770.2 71.1 52.4 31.4 Information processing and related equipment........... 206.6 202.6 213.0 213.6 226.5 231.3 298.0 288.1 311.5 320.7 353.4 376.2 52.6 32.7 22.8 Computers and peripheral equipment................. 81.1 79.9 84.0 83.7 91.8 94.6 214.8 203.9 229.9 242.9 292.2 331.1 63.5 49.3 38.9 Other...................... 125.5 122.7 129.0 129.9 134.7 136.7 126.6 123.7 130.0 131.5 136.7 139.4 11.2 5.2 2.7 Industrial equipment......... 138.6 138.9 140.7 142.1 145.4 146.4 125.9 126.4 127.7 128.6 131.5 132.2 5.4 2.9 .7 Transportation and related equipment................... 152.0 151.9 158.8 155.9 172.4 181.3 140.3 140.5 145.9 143.8 159.6 168.0 12.7 15.8 8.4 Other........................ 123.3 122.8 126.0 124.8 132.0 136.8 113.0 112.4 115.6 114.1 120.2 124.3 8.8 6.1 4.1 Residential...................... 327.9 325.9 328.8 337.4 349.8 363.0 282.8 282.5 282.3 287.9 298.5 309.0 6.9 10.6 10.5 Structures..................... 319.9 317.9 320.8 329.4 341.5 354.6 275.1 274.9 274.5 280.1 290.5 300.8 6.5 10.4 10.3 Single family................ 164.4 163.5 164.0 168.7 175.8 183.1 137.2 137.2 136.1 139.0 145.2 151.0 .6 6.2 5.8 Multifamily.................. 22.6 22.7 22.0 23.8 25.1 23.6 20.2 20.3 19.5 21.0 22.1 20.8 1.5 1.1 -1.3 Other........................ 132.8 131.8 134.7 136.8 140.6 147.9 118.5 118.0 119.7 120.9 123.8 129.6 4.7 2.9 5.8 Producers' durable equipment... 8.0 8.0 8.0 8.0 8.3 8.4 7.7 7.6 7.8 7.8 8.0 8.2 .4 .2 .2 Change in business inventories (CBI)............................. 67.4 83.5 54.6 71.9 95.5 40.2 63.2 79.0 51.0 66.5 91.4 39.1 33.2 24.9 -52.3 Farm............................. 4.3 6.2 7.3 4.9 5.0 7.8 4.3 6.8 7.3 3.7 5.3 8.8 -2.8 1.6 3.5 Nonfarm.......................... 63.1 77.2 47.3 66.9 90.5 32.3 58.8 72.1 44.0 62.7 85.9 30.7 35.6 23.2 -55.2 Manufacturing.................. 21.4 28.4 16.9 18.7 31.8 25.6 20.1 26.7 15.8 17.7 30.2 24.3 8.1 12.5 -5.9 Wholesale trade................ 23.3 29.9 17.5 21.5 28.1 10.4 22.0 28.3 16.7 20.2 27.0 10.0 17.9 6.8 -17.0 Retail trade................... 7.3 6.5 5.5 17.8 18.3 -12.7 6.8 6.0 5.0 16.9 17.3 -12.0 .9 .4 -29.3 Other.......................... 11.0 12.4 7.4 8.9 12.3 9.1 9.9 11.1 6.5 8.1 11.5 8.4 8.6 3.4 -3.1 Net exports of goods and services.... -93.4 -86.8 -94.7 -98.8 -123.7 -160.3 -136.1 -131.6 -142.4 -149.0 -198.5 -246.3 -24.9 -49.5 -47.8 Exports............................ 965.4 961.1 981.7 988.6 973.3 950.2 970.0 963.6 988.1 998.8 991.9 972.9 110.0 -6.9 -19.0 Goods............................ 688.3 682.9 700.2 708.9 694.5 668.2 726.5 719.1 740.6 754.9 748.5 725.6 97.1 -6.4 -22.9 Foods, feeds, and beverages.... 51.5 50.1 49.4 54.0 49.8 44.7 43.9 41.9 42.3 47.4 45.6 41.5 .0 -1.8 -4.1 Industrial supplies and materials..................... 152.5 153.3 155.1 154.4 148.6 144.2 132.4 133.0 134.2 134.7 132.8 130.7 10.5 -1.9 -2.1 Capital goods, except automotive.................... 295.3 290.4 305.7 306.5 302.0 288.7 388.6 381.5 404.7 408.7 405.5 390.2 77.8 -3.2 -15.3 Automotive vehicles, engines, and parts..................... 74.0 73.5 74.8 76.6 77.7 72.2 70.4 69.9 71.1 72.9 73.9 68.6 8.0 1.0 -5.3 Consumer goods, except automotive.................... 77.4 78.2 77.5 78.8 78.3 80.1 73.7 74.6 73.7 74.8 74.4 76.2 6.4 -.4 1.8 Other.......................... 37.5 37.4 37.7 38.5 38.1 38.3 37.2 37.0 37.5 38.3 38.3 38.7 4.9 .0 .4 Services......................... 277.1 278.2 281.5 279.7 278.8 282.0 247.0 247.5 251.1 248.6 247.8 250.0 15.2 -.8 2.2 Imports............................ 1,058.8 1,047.9 1,076.4 1,087.4 1,097.1 1,110.5 1,106.1 1,095.2 1,130.5 1,147.8 1,190.4 1,219.2 134.9 42.6 28.8 Goods............................ 888.3 879.2 902.7 912.4 920.9 932.4 945.7 937.4 966.7 981.8 1,021.0 1,049.5 121.0 39.2 28.5 Foods, feeds, and beverages.... 39.7 39.9 40.5 40.3 41.7 41.8 35.5 35.3 36.3 36.3 38.2 38.3 3.2 1.9 .1 Industrial supplies and materials, except petroleum and products.................. 135.4 133.7 137.8 139.0 141.3 144.0 123.7 123.0 125.9 127.3 132.8 136.9 9.5 5.5 4.1 Petroleum and products......... 71.8 70.7 70.3 68.6 54.9 54.5 66.7 68.1 69.1 66.9 68.3 75.2 2.9 1.4 6.9 Capital goods, except automotive.................... 254.2 251.7 260.9 264.8 268.9 270.6 373.3 367.0 385.0 396.7 413.6 424.7 76.7 16.9 11.1 Automotive vehicles, engines, and parts..................... 140.8 139.0 141.7 141.0 148.0 146.2 129.4 128.2 130.2 129.1 135.5 134.1 10.6 6.4 -1.4 Consumer goods, except automotive.................... 193.0 191.7 196.0 202.3 209.3 217.4 188.8 187.3 191.9 198.6 206.3 215.4 23.4 7.7 9.1 Other.......................... 53.4 52.5 55.5 56.5 56.7 57.8 49.9 49.0 51.9 52.8 53.4 54.2 6.9 .6 .8 Services......................... 170.4 168.7 173.6 174.9 176.2 178.1 161.8 159.2 165.2 167.5 171.3 172.1 14.5 3.8 .8 Government consumption expenditures and gross investment................ 1,454.6 1,451.5 1,459.5 1,468.1 1,464.9 1,480.3 1,285.0 1,284.4 1,288.9 1,289.2 1,283.0 1,294.6 16.8 -6.2 11.6 Federal............................ 520.2 522.9 521.0 520.1 511.6 519.9 458.0 460.4 458.9 456.5 446.1 453.4 -7.6 -10.4 7.3 National defense................. 346.0 349.1 347.1 346.5 331.6 339.5 308.9 311.7 310.2 308.7 293.3 300.1 -10.2 -15.4 6.8 Consumption expenditures....... 306.3 310.4 306.0 304.8 293.3 303.0 272.4 276.2 272.3 270.0 257.9 266.1 -4.2 -12.1 8.2 Gross investment............... 39.7 38.7 41.1 41.7 38.3 36.5 36.5 35.4 37.9 38.7 35.4 33.8 -6.1 -3.3 -1.6 Nondefense....................... 174.3 173.8 173.9 173.6 180.0 180.4 148.6 148.2 148.2 147.3 151.9 152.5 2.4 4.6 .6 Consumption expenditures....... 154.2 154.4 154.0 155.3 157.6 160.9 128.7 129.0 128.5 129.0 130.0 132.9 2.6 1.0 2.9 Gross investment............... 20.1 19.3 19.8 18.3 22.4 19.6 19.8 19.1 19.6 18.1 22.2 19.5 -.4 4.1 -2.7 State and local.................... 934.4 928.6 938.5 947.9 953.3 960.4 827.1 824.2 830.1 832.9 837.1 841.4 24.4 4.2 4.3 Consumption expenditures....... 758.8 754.0 762.2 771.5 776.7 784.3 672.3 670.1 674.7 678.5 682.8 687.4 15.5 4.3 4.6 Gross investment............... 175.6 174.6 176.3 176.4 176.6 176.1 154.8 154.0 155.3 154.3 154.2 153.9 9.0 -.1 -.3 Residual............................. ..... ..... ..... ..... ..... ..... -75.5 -68.2 -85.9 -91.3 -124.7 -137.5 -37.7 -33.4 -12.8 Addenda: Final sales of domestic product (GDP less CBI).................... 8,043.5 7,979.9 8,116.2 8,182.6 8,288.7 8,395.1 7,203.7 7,155.5 7,256.3 7,294.8 7,372.5 7,451.9 242.1 77.7 79.4 Gross domestic purchases........... 8,204.3 8,150.2 8,265.5 8,353.3 8,508.0 8,595.5 7,396.5 7,359.4 7,443.1 7,502.1 7,644.9 7,715.7 295.4 142.8 70.8 Final sales to domestic purchasers. 8,136.9 8,066.7 8,210.9 8,281.4 8,412.5 8,555.4 7,330.2 7,278.3 7,388.0 7,432.1 7,552.2 7,672.7 262.2 120.1 120.5 Gross domestic product............. 8,110.9 8,063.4 8,170.8 8,254.5 8,384.2 8,435.2 7,269.8 7,236.5 7,311.2 7,364.6 7,464.7 7,494.9 275.0 100.1 30.2 Plus: Receipts of factor income from the rest of the world........ 265.5 268.3 274.3 266.3 270.3 272.5 238.0 241.0 245.6 237.6 241.0 242.6 23.2 3.4 1.6 Less: Payments of factor income to the rest of the world............. 273.5 269.4 283.0 285.9 285.1 289.1 240.7 237.5 248.9 250.5 249.6 252.6 39.8 -.9 3.0 Equals: Gross national product..... 8,102.9 8,062.3 8,162.0 8,234.9 8,369.4 8,418.5 7,266.2 7,239.3 7,307.0 7,350.7 7,455.2 7,484.0 257.8 104.5 28.8 ------------------------------------------------------------------------------------------------------------------------------------------------------------- r revised Note.--Users are cautioned that particularly for components for which relative prices are changing rapidly, the use of chained-dollar estimates to calculate component shares or component contributions to real growth may be misleading even just a few years from the base year. 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.--Chain-Type Price Indexes for Gross Domestic Product and Related Measures: Percent Change From Preceding Period [Percent; quarters seasonally adjusted at annual rates] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1995 1996 1997 III 94 IV 94 I 95 II 95 III 95 IV 95 I 96 II 96 III 96 IV 96 I 97 II 97 III 97 IV 97 I 98 II 98r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP). 2.3 1.9 1.9 2.5 2.6 2.5 2.0 1.9 2.0 2.2 1.4 1.8 1.6 2.8 1.7 1.2 1.1 .9 .8 Personal consumption expenditures... 2.3 2.0 1.9 3.6 2.7 1.7 2.4 1.8 1.6 2.2 2.5 1.5 2.5 2.5 1.1 1.3 1.1 .0 .9 Durable goods..................... .4 -.9 -2.0 3.3 .4 .4 -.4 -1.3 -1.1 .6 -2.1 -1.5 -1.8 -.9 -3.4 -2.8 -2.4 -1.4 -2.2 Nondurable goods.................. 1.2 2.0 1.5 4.3 1.3 -.6 1.6 .8 .9 3.0 3.6 .3 3.6 2.0 -.2 .8 .9 -2.2 .2 Services.......................... 3.3 2.7 2.9 3.3 3.9 3.2 3.4 2.9 2.5 2.1 3.0 2.7 2.9 3.5 2.8 2.5 1.9 1.4 1.9 Gross private domestic investment... 1.4 -.3 -.3 2.1 1.3 1.7 1.9 -.1 -.2 -1.0 -.8 .7 -.5 -.7 -.5 .2 -.5 -2.3 -2.0 Fixed investment.................. 1.4 -.1 -.2 2.1 1.3 1.6 1.9 -.1 .0 -.8 -.6 .8 -.2 -.6 -.5 .4 -.5 -2.1 -2.0 Nonresidential.................. .5 -.9 -1.3 1.2 -.3 .2 2.0 -.7 -.8 -1.5 -1.5 -.5 -1.1 -1.7 -1.5 -1.0 -1.6 -3.0 -3.2 Structures.................... 4.1 2.6 3.4 4.6 6.2 4.7 2.9 2.8 2.4 2.1 2.2 4.1 3.1 3.3 3.3 4.3 3.3 2.7 2.7 Producers' durable equipment.. -.9 -2.2 -3.0 .0 -2.7 -1.5 1.6 -2.0 -2.0 -2.9 -2.9 -2.2 -2.6 -3.6 -3.2 -2.9 -3.3 -5.0 -5.2 Residential..................... 3.5 1.9 2.6 4.2 5.2 5.1 1.8 1.5 2.0 1.1 1.6 4.3 1.9 2.3 1.9 4.0 2.4 .0 1.0 Change in business inventories (CBI)............................ ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports........................... 2.1 -1.7 -2.0 1.6 2.9 4.0 3.4 -1.8 -2.3 -1.2 -1.7 -3.2 -4.2 -1.0 -1.0 -1.6 -1.6 -3.4 -1.9 Goods........................... 1.8 -3.5 -3.5 1.0 2.7 5.0 2.6 -3.1 -3.9 -3.4 -2.6 -5.6 -7.2 -1.7 -2.5 -1.8 -2.7 -4.7 -3.0 Services........................ 2.9 2.7 1.8 3.4 3.1 1.6 5.4 1.5 1.8 4.6 .6 3.1 3.5 .9 2.7 -1.0 1.5 .0 1.0 Imports........................... 2.2 -2.2 -3.7 6.1 1.5 1.4 6.9 -3.9 -3.9 -1.8 -1.5 -5.2 -.3 -4.4 -7.1 -2.1 -2.3 -10.4 -4.6 Goods........................... 2.1 -2.9 -4.2 5.6 1.3 2.8 5.7 -4.9 -4.2 -2.4 -2.1 -6.4 -.8 -4.6 -8.5 -1.9 -2.2 -11.3 -5.9 Services........................ 2.7 1.6 -.6 8.2 2.8 -5.1 13.2 2.0 -2.5 1.5 1.4 1.9 2.0 -3.0 .3 -3.2 -2.6 -5.8 2.4 Government consumption expenditures and gross investment............... 3.1 2.5 2.2 1.8 2.6 4.8 2.9 2.2 3.9 4.3 -1.2 2.4 2.7 3.8 1.2 .8 2.2 1.1 .6 Federal........................... 3.2 2.9 2.0 -.5 2.7 5.8 1.4 2.5 8.2 4.2 -2.1 1.8 2.7 4.8 .9 -.2 1.4 2.7 -.1 National defense................ 2.7 3.3 1.8 .1 2.5 4.3 2.1 2.7 4.3 6.7 -.3 1.9 2.7 4.0 .5 -.4 1.2 2.9 .2 Nondefense...................... 4.1 2.2 2.4 -1.9 3.2 9.0 -.2 2.1 16.5 -.7 -5.9 1.6 2.6 6.4 1.7 .4 1.8 2.2 -.6 State and local................... 3.1 2.2 2.2 3.2 2.6 4.2 3.8 1.9 1.4 4.3 -.6 2.7 2.8 3.3 1.4 1.4 2.7 .2 1.0 Addenda: Final sales of domestic product (GDP less CBI)................... 2.3 1.9 1.9 2.5 2.6 2.5 2.0 1.9 2.0 2.3 1.4 1.9 1.7 2.8 1.8 1.2 1.2 .9 .8 Gross domestic purchases.......... 2.3 1.8 1.6 3.0 2.5 2.2 2.4 1.6 1.8 2.1 1.4 1.5 2.1 2.2 .9 1.1 1.0 -.2 .4 Final sales to domestic purchasers....................... 2.3 1.8 1.6 3.0 2.5 2.2 2.4 1.6 1.8 2.2 1.4 1.5 2.1 2.3 .9 1.1 1.0 -.1 .4 Gross national product (GNP)...... 2.3 1.9 1.8 2.5 2.6 2.6 2.0 1.9 2.0 2.2 1.4 1.8 1.6 2.7 1.7 1.2 1.1 .9 .8 Implicit price deflators: GDP............................. 2.3 1.9 1.9 2.6 2.7 2.5 1.8 1.9 2.0 2.3 1.2 1.8 1.8 2.8 1.6 1.2 1.2 .8 .8 Gross domestic purchases........ 2.3 1.8 1.6 3.1 2.5 2.3 2.3 1.6 1.8 2.1 1.2 1.6 2.2 2.2 .8 1.1 1.1 -.2 .4 GNP............................. 2.3 1.9 1.8 2.6 2.6 2.6 1.8 1.9 2.0 2.3 1.2 1.8 1.8 2.8 1.5 1.2 1.2 .8 .8 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r revised See "Explanatory Note" at the end of the tables. Table 5.--Quantity and Price Indexes for Gross Domestic Product [Index numbers, 1992=100] ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates --------------------------------------------------- 1995 1996 1997 II 97 III 97 IV 97 I 98 II 98r ----------------------------------------------------------------------------------------------------------------------------------- Gross domestic product: Chain-type quantity index........ 108.28 112.02 116.42 115.89 117.08 117.94 119.54 120.03 Chain-type price index........... 107.51 109.54 111.57 111.45 111.77 112.09 112.33 112.56 Implicit price deflator.......... 107.51 109.53 111.57 111.43 111.76 112.08 112.32 112.55 Personal consumption expenditures: Chain-type quantity index................ 109.14 112.62 116.44 115.47 117.23 118.04 119.79 121.51 Chain-type price index................... 107.56 109.75 111.81 111.63 112.00 112.30 112.30 112.55 Durable goods: Chain-type quantity index.............. 120.59 128.16 136.86 133.82 139.12 140.17 145.39 149.25 Chain-type price index................. 103.72 102.75 100.66 100.96 100.23 99.62 99.27 98.72 Nondurable goods: Chain-type quantity index.............. 107.24 109.77 112.44 111.75 113.16 113.05 115.09 116.49 Chain-type price index................. 103.96 106.08 107.69 107.52 107.72 107.95 107.35 107.41 Services: Chain-type quantity index.............. 107.89 111.09 114.61 113.87 115.19 116.41 117.42 118.92 Chain-type price index................. 110.37 113.32 116.61 116.30 117.04 117.59 118.00 118.56 Gross private domestic fixed investment: Chain-type quantity index................ 123.30 134.10 145.25 143.85 147.98 149.28 156.36 161.28 Chain-type price index................... 104.81 104.68 104.45 104.40 104.50 104.37 103.81 103.28 Nonresidential: Chain-type quantity index.............. 127.38 139.21 154.04 152.04 158.13 158.86 167.04 172.06 Chain-type price index................. 102.40 101.46 100.15 100.28 100.04 99.64 98.90 98.11 Residential: Chain-type quantity index.............. 113.85 122.32 125.36 125.26 125.14 127.64 132.34 136.99 Chain-type price index................. 110.90 113.03 115.96 115.35 116.50 117.20 117.21 117.50 Exports of goods and services: Chain-type quantity index................ 123.95 134.50 151.70 150.70 154.53 156.21 155.12 152.15 Chain-type price index................... 103.39 101.60 99.53 99.76 99.36 98.97 98.13 97.67 Imports of goods and services: Chain-type quantity index................ 132.90 145.19 165.35 163.72 169.00 171.59 177.95 182.25 Chain-type price index................... 101.61 99.36 95.72 95.66 95.16 94.62 92.05 90.98 Government consumption expenditures and gross investment: Chain-type quantity index................ 99.27 100.35 101.68 101.63 101.99 102.01 101.53 102.44 Chain-type price index................... 108.12 110.80 113.20 113.01 113.24 113.87 114.17 114.34 Federal: Chain-type quantity index.............. 89.14 88.19 86.75 87.20 86.92 86.46 84.50 85.87 Chain-type price index................. 108.17 111.35 113.58 113.57 113.52 113.91 114.66 114.65 State and local: Chain-type quantity index.............. 106.55 109.09 112.42 112.01 112.82 113.19 113.77 114.35 Chain-type price index................. 108.09 110.48 112.96 112.68 113.07 113.83 113.89 114.16 Addenda: Final sales of domestic product: Chain-type quantity index.............. 107.92 111.61 115.49 114.72 116.33 116.95 118.20 119.47 Chain-type price index................. 107.54 109.59 111.66 111.53 111.87 112.19 112.45 112.68 Implicit price deflator................ 107.53 109.59 111.66 111.52 111.85 112.17 112.43 112.66 Gross domestic purchases: Chain-type quantity index.............. 109.26 113.18 117.89 117.30 118.63 119.57 121.85 122.98 Chain-type price index................. 107.28 109.18 110.92 110.76 111.06 111.34 111.29 111.40 Implicit price deflator................ 107.27 109.18 110.92 110.74 111.05 111.35 111.29 111.40 Final sales to domestic purchasers: Chain-type quantity index.............. 108.90 112.78 116.97 116.14 117.89 118.59 120.51 122.43 Chain-type price index................. 107.30 109.24 111.00 110.84 111.15 111.44 111.40 111.51 Implicit price deflator................ 107.30 109.23 111.00 110.83 111.14 111.43 111.39 111.50 Gross national product: Chain-type quantity index.............. 108.38 112.04 116.16 115.73 116.81 117.51 119.18 119.64 Chain-type price index................. 107.49 109.51 111.51 111.39 111.72 112.04 112.28 112.50 Implicit price deflator................ 107.49 109.50 111.52 111.37 111.70 112.03 112.26 112.49 ----------------------------------------------------------------------------------------------------------------------------------- r revised See "Explanatory Note" at the end of the tables. Table 6.--Real Gross Domestic Product: Historical Perspective [Percent change from preceding year] ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP).... -2.1 4.0 7.0 3.6 3.1 2.9 3.8 3.4 1.2 -.9 2.7 2.3 3.5 2.3 3.4 3.9 Personal consumption expenditures...... 1.2 5.2 5.2 4.7 4.0 3.1 3.9 2.3 1.7 -.6 2.8 2.9 3.3 2.7 3.2 3.4 Durable goods........................ -.1 14.7 14.5 9.7 9.0 1.5 6.3 2.6 -.6 -6.4 5.8 7.2 7.1 5.0 6.3 6.8 Nondurable goods..................... .6 2.9 3.5 2.3 3.2 1.9 2.8 2.3 1.0 -1.0 1.5 2.2 2.9 2.0 2.4 2.4 Services............................. 1.9 4.7 4.1 5.0 3.2 4.2 4.0 2.3 2.6 .8 2.9 2.5 2.7 2.5 3.0 3.2 Gross private domestic investment...... -14.4 9.4 29.8 -1.1 -1.5 1.2 .8 4.3 -5.6 -9.4 7.1 9.3 13.0 2.1 8.8 11.3 Fixed investment..................... -7.6 7.2 16.5 4.8 .7 -.7 2.4 1.7 -3.1 -8.0 5.7 7.6 8.6 5.5 8.8 8.3 Nonresidential..................... -4.4 -1.7 17.3 6.2 -3.5 -1.1 4.4 4.0 -.6 -6.4 1.9 7.6 8.0 9.6 9.3 10.7 Structures....................... -1.5 -10.4 14.3 7.3 -10.8 -3.6 .5 2.2 1.1 -10.7 -6.8 1.0 1.0 4.8 5.0 7.1 Producers' durable equipment..... -6.4 4.6 19.2 5.5 1.0 .3 6.4 5.0 -1.5 -4.1 6.2 10.5 11.0 11.5 10.9 12.1 Residential........................ -18.2 41.1 14.6 1.4 12.0 .2 -2.0 -3.7 -9.3 -12.3 16.6 7.6 10.1 -3.8 7.4 2.5 Change in business inventories (CBI)............................... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services...... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports.............................. -7.1 -2.6 8.3 2.7 7.4 11.0 15.9 11.7 8.5 6.3 6.6 2.9 8.2 11.3 8.5 12.8 Goods.............................. -9.1 -2.9 7.9 3.6 5.1 11.0 18.8 12.5 8.3 7.0 7.0 3.4 9.9 12.5 9.7 15.4 Services........................... .0 -1.7 9.3 .3 13.3 10.9 8.7 9.4 9.1 4.4 5.5 2.0 4.3 8.2 5.6 6.6 Imports.............................. -1.3 12.6 24.3 6.5 8.4 6.1 3.9 3.9 3.9 -.7 7.5 8.9 12.2 8.8 9.2 13.9 Goods.............................. -2.5 13.6 24.2 6.3 10.3 4.6 4.0 4.2 3.0 .0 9.6 10.5 13.6 9.6 10.0 14.7 Services........................... 5.3 8.1 24.8 7.4 .4 12.9 3.6 2.6 7.6 -3.2 -1.0 1.9 5.3 4.9 5.4 9.9 Government consumption expenditures and gross investment.................. 1.3 2.8 3.1 6.1 5.1 2.7 1.3 2.8 3.0 .6 .5 -.9 .0 .2 1.1 1.3 Federal.............................. 3.2 5.4 2.4 6.9 4.6 3.1 -1.8 1.3 2.0 -.5 -2.1 -4.2 -3.8 -3.3 -1.1 -1.6 National defense................... 6.9 5.7 4.0 7.5 5.2 4.0 -.9 -1.0 .0 -1.0 -5.5 -5.7 -4.9 -4.0 -1.3 -3.2 Nondefense......................... -5.9 4.6 -2.2 5.1 2.8 .1 -4.9 9.2 8.0 1.1 7.2 -.7 -1.1 -1.8 -.5 1.7 State and local...................... -.3 .7 3.8 5.3 5.5 2.4 3.9 4.0 3.8 1.4 2.4 1.5 2.6 2.4 2.4 3.1 Addenda: Final sales of domestic product (GDP less CBI)...................... -.9 3.7 5.0 4.6 3.5 2.6 4.1 3.0 1.6 -.7 2.5 2.1 2.9 2.8 3.4 3.5 Gross domestic purchases price index............................... 5.9 3.8 3.5 3.2 2.6 3.4 3.6 4.2 4.5 3.7 2.8 2.5 2.3 2.3 1.8 1.6 GDP price index...................... 6.3 4.2 3.8 3.4 2.6 3.1 3.7 4.2 4.4 3.9 2.8 2.6 2.4 2.3 1.9 1.9 Real disposable personal income...... .8 2.7 7.4 2.9 2.9 1.9 4.1 2.0 1.8 -.1 2.7 1.3 2.3 2.8 2.8 2.8 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Table 7.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago [Percent change from preceding year] ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- III 94 IV 94 I 95 II 95 III 95 IV 95 I 96 II 96 III 96 IV 96 I 97 II 97 III 97 IV 97 I 98 II 98r ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP).... 3.7 3.3 3.0 1.9 2.3 2.1 2.4 3.9 3.5 3.9 4.1 3.6 4.1 3.8 4.2 3.6 Personal consumption expenditures...... 3.0 3.1 2.6 2.7 2.8 2.6 3.0 3.3 3.1 3.3 3.4 2.7 3.7 3.7 4.2 5.2 Durable goods........................ 6.0 6.3 4.5 5.0 6.0 4.5 6.2 7.9 5.2 5.8 7.4 3.9 8.5 7.4 8.2 11.5 Nondurable goods..................... 2.7 3.0 2.3 2.2 1.8 1.7 1.6 2.4 2.6 2.8 3.1 1.8 2.8 2.0 2.9 4.2 Services............................. 2.6 2.5 2.4 2.5 2.6 2.6 3.0 2.8 3.0 3.0 2.8 2.8 3.2 3.8 3.9 4.4 Gross private domestic investment...... 13.2 10.9 7.8 -.6 1.2 .2 1.6 9.2 13.7 11.0 12.4 12.9 8.7 11.3 14.3 7.9 Fixed investment..................... 9.3 6.6 7.8 4.9 4.7 4.8 5.7 8.9 10.5 9.9 8.4 8.0 8.6 8.2 11.8 12.1 Nonresidential..................... 8.5 7.6 11.5 10.8 9.0 7.3 6.6 7.6 11.0 11.7 10.2 11.0 11.6 9.8 13.5 13.2 Structures....................... 1.3 1.1 7.9 4.2 4.3 2.7 1.7 2.3 4.6 11.6 10.9 7.2 8.1 2.5 .3 1.5 Producers' durable equipment..... 11.5 10.2 13.0 13.4 10.8 9.1 8.6 9.8 13.6 11.8 9.9 12.4 13.0 12.7 19.0 17.8 Residential........................ 11.2 4.2 -.5 -8.1 -5.1 -1.4 3.1 12.3 9.2 5.4 3.9 .8 1.2 4.2 7.2 9.4 Change in business inventories (CBI)............................... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services...... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports.............................. 11.7 10.0 13.0 9.9 11.7 10.5 9.1 9.2 5.4 10.3 11.5 14.0 16.3 9.6 6.7 1.0 Goods.............................. 14.7 11.8 15.3 11.9 12.4 10.8 10.2 9.6 7.5 11.4 13.5 16.9 18.2 13.1 8.3 .9 Services........................... 5.1 6.0 7.7 5.2 10.0 9.8 6.4 8.2 .4 7.5 6.7 7.1 11.5 1.5 2.9 1.0 Imports.............................. 14.2 12.3 12.9 10.0 7.2 5.6 6.4 7.9 10.8 11.8 13.1 14.2 14.2 14.0 13.3 11.3 Goods.............................. 16.1 14.7 14.5 11.3 7.7 5.5 6.9 8.4 11.6 13.0 14.2 15.2 14.9 14.3 13.9 12.0 Services........................... 5.7 1.4 5.5 3.6 4.5 6.1 3.5 5.5 7.2 5.5 7.5 9.1 10.5 12.4 10.3 8.1 Government consumption expenditures and gross investment.................. 1.4 .1 1.1 1.3 -.8 -.9 -.1 1.3 1.1 2.1 1.8 .6 1.4 1.4 .4 .8 Federal.............................. -1.0 -3.9 -1.8 -1.0 -4.7 -5.6 -3.2 -.8 -1.3 1.1 -1.5 -2.6 -1.7 -.6 -2.2 -1.5 National defense................... -1.2 -6.0 -2.0 -2.3 -6.7 -5.0 -2.9 -1.0 -1.3 -.1 -4.3 -4.1 -3.0 -1.4 -3.8 -3.7 Nondefense......................... -.6 .9 -1.2 1.7 -.4 -7.0 -3.7 -.2 -1.3 3.5 4.3 .6 .9 .9 .8 2.9 State and local...................... 3.0 2.7 3.0 2.8 1.7 2.1 1.7 2.5 2.5 2.8 3.8 2.6 3.2 2.6 1.9 2.1 Addenda: Final sales of domestic product (GDP less CBI)...................... 3.2 2.7 2.9 2.7 2.8 2.7 3.0 3.8 3.1 3.7 3.6 2.9 4.1 3.4 3.7 4.1 Gross domestic purchases price index............................... 2.5 2.5 2.6 2.5 2.2 2.0 2.0 1.7 1.7 1.8 1.8 1.7 1.6 1.3 .7 .6 GDP price index...................... 2.5 2.5 2.5 2.4 2.2 2.1 2.0 1.9 1.9 1.8 1.9 2.0 1.8 1.7 1.2 1.0 Real disposable pers nal income...... 2.5 2.5 4.3 2.4 2.4 2.1 2.2 2.9 3.3 2.7 2.8 3.0 2.5 2.9 3.0 3.1 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- r revised Table 8.--Relation of Gross Domestic Product, Gross National Product, and National Income [Billions of dollars] ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates --------------------------------------------------- 1995 1996 1997 II 97 III 97 IV 97 I 98 II 98r ----------------------------------------------------------------------------------------------------------------------------------- Gross domestic product..................... 7,269.6 7,661.6 8,110.9 8,063.4 8,170.8 8,254.5 8,384.2 8,435.2 Plus: Receipts of factor income from the rest of the world..................... 225.2 235.5 265.5 268.3 274.3 266.3 270.3 272.5 Less: Payments of factor income to the rest of the world..................... 207.6 223.1 273.5 269.4 283.0 285.9 285.1 289.1 Equals: Gross national product............. 7,287.1 7,674.0 8,102.9 8,062.3 8,162.0 8,234.9 8,369.4 8,418.5 Less: Consumption of fixed capital......... 800.8 832.0 871.8 866.5 877.0 887.6 894.5 901.9 Less: Indirect business tax and nontax liability.......................... 581.2 606.4 627.2 625.0 632.0 634.5 641.9 647.4 Less: Business transfer payments........... 32.9 33.8 35.1 35.0 35.4 35.6 35.6 36.7 Less: Statistical discrepancy.............. -26.5 -32.2 -55.8 -47.7 -65.1 -67.3 -54.1 -86.3 Plus: Subsidies less current surplus of government enterprises......... 25.1 22.0 21.9 21.0 22.0 23.4 23.5 23.9 Equals: National income.................... 5,923.7 6,256.0 6,646.5 6,604.5 6,704.8 6,767.9 6,875.0 6,942.7 Compensation of employees................ 4,208.9 4,409.0 4,687.2 4,649.2 4,715.5 4,798.0 4,882.8 4,945.3 Wage and salary accruals............... 3,441.9 3,640.4 3,893.6 3,859.2 3,919.3 3,993.6 4,065.9 4,121.8 Supplements to wages and salaries...... 767.0 768.6 793.7 790.0 796.2 804.4 816.8 823.5 Proprietors' income with inventory valuation and capital consumption adjustments............................. 488.1 527.7 551.2 549.9 556.5 558.0 564.2 569.6 Rental income of persons with capital consumption adjustment.......... 133.7 150.2 158.2 158.0 158.6 158.8 158.3 161.8 Corporate profits with inventory valuation and capital consumption adjustments............................. 672.4 750.4 817.9 815.5 840.9 820.8 829.2 819.7 Net interest............................. 420.6 418.6 432.0 431.8 433.3 432.4 440.5 446.3 Addendum: Gross domestic income.................... 7,296.1 7,693.8 8,166.7 8,111.1 8,235.9 8,321.8 8,438.4 8,521.5 ----------------------------------------------------------------------------------------------------------------------------------- r revised Table 9.--Personal Income and Its Disposition [Billions of dollars] ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates --------------------------------------------------- 1995 1996 1997 II 97 III 97 IV 97 I 98 II 98r ----------------------------------------------------------------------------------------------------------------------------------- Personal income\1\......................... 6,072.1 6,425.2 6,784.0 6,743.6 6,820.9 6,904.9 7,003.9 7,080.8 Wage and salary disbursements............ 3,428.5 3,631.1 3,889.8 3,855.5 3,915.5 3,989.9 4,061.9 4,117.8 Other labor income....................... 401.6 387.0 392.9 391.5 393.6 397.0 402.8 405.7 Proprietors' income with inventory valuation and capital consumption adjustments................. 488.1 527.7 551.2 549.9 556.5 558.0 564.2 569.6 Farm................................... 22.4 38.9 35.5 37.8 36.3 31.4 27.4 25.7 Nonfarm................................ 465.6 488.8 515.8 512.1 520.2 526.6 536.8 543.8 Rental income of persons with capital consumption adjustment.......... 133.7 150.2 158.2 158.0 158.6 158.8 158.3 161.8 Personal dividend income................. 192.8 248.2 260.3 259.9 260.4 261.3 261.6 262.1 Personal interest income................. 704.9 719.4 747.3 745.7 750.5 753.0 757.0 762.4 Transfer payments to persons............. 1,015.9 1,068.0 1,110.4 1,106.8 1,114.0 1,120.5 1,139.0 1,146.6 Less: Personal contributions for social insurance........................ 293.6 306.3 326.2 323.7 328.2 333.6 340.9 345.1 Less: Personal tax and nontax payments..... 795.0 890.5 989.0 975.8 999.0 1,025.5 1,066.8 1,087.4 Equals: Disposable personal income......... 5,277.0 5,534.7 5,795.1 5,767.9 5,821.8 5,879.4 5,937.1 5,993.4 Less: Personal outlays..................... 5,097.2 5,376.2 5,674.1 5,616.0 5,723.3 5,781.2 5,864.0 5,960.4 Equals: Personal saving.................... 179.8 158.5 121.0 151.9 98.5 98.2 73.0 33.1 Addenda: Disposable personal income, billions of chained (1992) dollars\2\... 4,906.0 5,043.0 5,183.1 5,167.5 5,198.4 5,235.8 5,287.1 5,325.3 Personal saving as a percentage of disposable personal income.............. 3.4 2.9 2.1 2.6 1.7 1.7 1.2 .6 ----------------------------------------------------------------------------------------------------------------------------------- r revised 1. Personal income is also equal to national income less corporate profits with inventory valuation and capital consumption adjustments, net interest, contributions for social insurance, and wage accruals less disbursements, plus personal interest income, personal dividend income, government transfer payments to persons, and business transfer payments to persons. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. Table 10.--Corporate Profits: Level and Percent Change [Billions of dollars] ------------------------------------------------------------------------------------------------------------------------------------------------------------- Billions of dollars Percent change from preceding period ---------------------------------------------------------------- ------------------------------------------------------ Seasonally adjusted Quarterly Quarter one at annual rates rates year ago --------------------------------------- ------------------------------- ------- 1995 1996 1997 II 97 III 97 IV 97 I 98 II 98 1996 1997 III 97 IV 97 I 98 II 98 II 98 ------------------------------------------------------------------------------------------------------------------------------------------------------------- Corporate profits with inventory valuation and capital consumption adjustments......................... 672.4 750.4 817.9 815.5 840.9 820.8 829.2 819.7 11.6 9.0 3.1 -2.4 1.0 -1.1 .5 Profits before tax................. 635.6 680.2 734.4 729.8 758.9 736.4 719.1 720.5 7.0 8.0 4.0 -3.0 -2.4 .2 -1.3 Profits tax liability............ 211.0 226.1 246.1 241.9 254.2 249.3 239.9 240.0 7.2 8.8 5.1 -1.9 -3.8 .0 -.8 Profits after tax................ 424.6 454.1 488.3 487.8 504.7 487.1 479.2 480.5 6.9 7.5 3.5 -3.5 -1.6 .3 -1.5 Dividends...................... 205.3 261.9 275.1 274.7 275.1 276.4 277.3 278.1 27.5 5.0 .2 .5 .3 .3 1.3 Undistributed profits.......... 219.3 192.3 213.2 213.2 229.5 210.6 201.8 202.4 -12.3 10.9 7.7 -8.2 -4.2 .3 -5.1 Inventory valuation adjustment..... -22.6 -1.2 6.9 10.3 4.8 4.3 25.3 9.8 ..... ..... ..... ..... ..... ..... ..... Capital consumption adjustment..... 59.4 71.4 76.6 75.5 77.2 80.1 84.9 89.4 20.3 7.3 2.3 3.7 6.0 5.4 18.5 Addenda: Corporate profits after tax with inventory valuation and capital consumption adjustments........... 461.4 524.3 571.8 573.6 586.7 571.4 589.3 579.7 13.6 9.1 2.3 -2.6 3.1 -1.6 1.1 Net cash flow with inventory valuation and capital consumption adjustments........... 687.2 714.4 774.1 772.6 792.3 782.6 804.5 799.4 4.0 8.3 2.6 -1.2 2.8 -.6 3.5 Undistributed profits with inventory valuation and capital consumption adjustments......... 256.1 262.4 296.7 299.0 311.5 295.0 312.0 301.6 2.5 13.1 4.2 -5.3 5.8 -3.3 .9 Consumption of fixed capital..... 431.1 452.0 477.3 473.7 480.8 487.7 492.5 497.8 4.8 5.6 1.5 1.4 1.0 1.1 5.1 Less: Inventory valuation adjustment........................ -22.6 -1.2 6.9 10.3 4.8 4.3 25.3 9.8 ..... ..... ..... ..... ..... ..... ..... Equals: Net cash flow.............. 709.8 715.7 767.2 762.3 787.5 778.4 779.2 789.6 .8 7.2 3.3 -1.2 .1 1.3 3.6 ------------------------------------------------------------------------------------------------------------------------------------------------------------- Table 11.--Corporate Profits by Industry: Level and Change From Preceding Period [Billions of dollars] ------------------------------------------------------------------------------------------------------------------------------------------------------------- Level Change from preceding period ---------------------------------------------------------------- ---------------------------------------------- Seasonally adjusted at annual rates --------------------------------------- ---------------------------------------------- 1995 1996 1997 II 97 III 97 IV 97 I 98 II 98 1996 1997 III 97 IV 97 I 98 II 98 ------------------------------------------------------------------------------------------------------------------------------------------------------------- Corporate profits with IVA and CCAdj..... 672.4 750.4 817.9 815.5 840.9 820.8 829.2 819.7 78.0 67.5 25.4 -20.1 8.4 -9.5 Domestic industries.......................... 582.8 654.0 718.9 710.2 738.6 728.8 730.6 721.1 71.2 64.9 28.4 -9.8 1.8 -9.5 Financial.................................. 95.5 105.5 124.7 123.5 123.3 129.5 131.3 133.1 10.0 19.2 -.2 6.2 1.8 1.8 Nonfinancial............................... 487.4 548.5 594.2 586.7 615.2 599.3 599.3 588.0 61.1 45.7 28.5 -15.9 .0 -11.3 Rest of the world............................ 89.5 96.4 99.0 105.4 102.3 92.0 98.6 98.6 6.9 2.6 -3.1 -10.3 6.6 .0 Receipts from the rest of the world........ 123.9 134.5 149.5 153.3 157.2 142.5 146.1 146.0 10.6 15.0 3.9 -14.7 3.6 -.1 Less: Payments to the rest of the world.... 34.4 38.1 50.4 47.9 54.8 50.6 47.5 47.3 3.7 12.3 6.9 -4.2 -3.1 -.2 Corporate profits with IVA............... 613.0 679.0 741.2 740.1 763.7 740.7 744.3 730.3 66.0 62.2 23.6 -23.0 3.6 -14.0 Domestic industries.......................... 523.4 582.6 642.2 634.7 661.4 648.7 645.8 631.7 59.2 59.6 26.7 -12.7 -2.9 -14.1 Financial.................................. 104.6 110.7 130.0 128.7 128.6 134.7 136.3 137.4 6.1 19.3 -.1 6.1 1.6 1.1 Federal Reserve banks.................... 22.2 21.8 23.3 23.0 23.6 24.1 24.5 24.4 -.4 1.5 .6 .5 .4 -.1 Other.................................... 82.4 88.9 106.6 105.8 105.0 110.6 111.8 113.0 6.5 17.7 -.8 5.6 1.2 1.2 Nonfinancial............................... 418.8 471.8 512.3 506.0 532.8 514.0 509.4 494.3 53.0 40.5 26.8 -18.8 -4.6 -15.1 Manufacturing............................ 183.9 195.6 214.4 215.5 228.9 212.3 197.1 ..... 11.7 18.8 13.4 -16.6 -15.2 ..... Durable goods.......................... 87.1 97.2 107.3 105.7 120.0 107.5 100.8 ..... 10.1 10.1 14.3 -12.5 -6.7 ..... Primary metal industries............. 7.0 5.4 5.6 5.5 6.6 5.8 6.3 ..... -1.6 .2 1.1 -.8 .5 ..... Fabricated metal products............ 11.8 14.2 15.5 14.9 17.3 15.7 12.6 ..... 2.4 1.3 2.4 -1.6 -3.1 ..... Industrial machinery and equipment... 22.3 26.1 27.6 26.6 31.5 30.1 23.2 ..... 3.8 1.5 4.9 -1.4 -6.9 ..... Electronic and other electric equipment........................... 21.0 20.1 24.8 24.4 27.6 24.0 21.9 ..... -.9 4.7 3.2 -3.6 -2.1 ..... Motor vehicles and equipment......... -.1 2.4 3.8 2.6 6.0 2.1 6.2 ..... 2.5 1.4 3.4 -3.9 4.1 ..... Other................................ 25.0 29.0 30.0 31.7 31.0 29.8 30.7 ..... 4.0 1.0 -.7 -1.2 .9 ..... Nondurable goods....................... 96.8 98.5 107.1 109.8 109.0 104.8 96.2 ..... 1.7 8.6 -.8 -4.2 -8.6 ..... Food and kindred products............ 27.6 22.0 22.7 21.4 22.2 25.9 20.6 ..... -5.6 .7 .8 3.7 -5.3 ..... Chemicals and allied products........ 29.7 28.8 28.1 27.2 28.9 28.4 27.0 ..... -.9 -.7 1.7 -.5 -1.4 ..... Petroleum and coal products.......... 6.4 10.9 18.0 20.7 18.2 14.9 10.9 ..... 4.5 7.1 -2.5 -3.3 -4.0 ..... Other................................ 33.1 36.7 38.3 40.5 39.7 35.7 37.8 ..... 3.6 1.6 -.8 -4.0 2.1 ..... Transportation and public utilities...... 86.0 92.7 88.4 87.0 88.3 88.6 91.7 ..... 6.7 -4.3 1.3 .3 3.1 ..... Transportation......................... 11.3 14.8 17.6 18.3 18.0 17.0 17.3 ..... 3.5 2.8 -.3 -1.0 .3 ..... Communications......................... 33.8 35.8 31.2 28.9 32.3 31.3 34.1 ..... 2.0 -4.6 3.4 -1.0 2.8 ..... Electric, gas, and sanitary services... 40.8 42.1 39.7 39.8 38.0 40.3 40.3 ..... 1.3 -2.4 -1.8 2.3 .0 ..... Wholesale trade.......................... 26.2 37.9 49.8 50.5 52.7 47.6 51.5 ..... 11.7 11.9 2.2 -5.1 3.9 ..... Retail trade............................. 43.3 51.8 61.2 59.1 62.7 62.2 67.4 ..... 8.5 9.4 3.6 -.5 5.2 ..... Other.................................... 79.5 93.8 98.5 93.8 100.1 103.4 101.8 ..... 14.3 4.7 6.3 3.3 -1.6 ..... Rest of the world............................ 89.5 96.4 99.0 105.4 102.3 92.0 98.6 98.6 6.9 2.6 -3.1 -10.3 6.6 .0 ------------------------------------------------------------------------------------------------------------------------------------------------------------- IVA Inventory valuation adjustment CCAdj. Capital consumption adjustment Table 12.--Gross Domestic Product of Nonfinancial Corporate Business [Billions of dollars] ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates --------------------------------------------------- 1995 1996 1997 II 97 III 97 IV 97 I 98 II 98 ----------------------------------------------------------------------------------------------------------------------------------- Billions of dollars ---------------------------------------------------------------------------------------- Gross domestic product of nonfinancial corporate business....... 3,920.4 4,134.4 4,414.5 4,375.7 4,461.9 4,513.2 4,574.2 4,613.8 Consumption of fixed capital............... 375.6 393.4 415.4 412.2 418.4 424.4 428.5 433.0 Net domestic product....................... 3,544.8 3,741.0 3,999.1 3,963.5 4,043.4 4,088.8 4,145.7 4,180.8 Indirect business tax and nontax liability plus business transfer payments less subsidies................. 397.3 411.6 436.8 434.5 442.1 445.0 450.5 454.7 Domestic income.......................... 3,147.5 3,329.4 3,562.3 3,529.0 3,601.4 3,643.8 3,695.2 3,726.0 Compensation of employees.............. 2,556.0 2,679.7 2,871.2 2,843.4 2,889.8 2,952.6 3,002.3 3,043.1 Wage and salary accruals............. 2,111.4 2,240.7 2,416.6 2,389.7 2,434.3 2,494.2 2,534.5 2,571.4 Supplements to wages and salaries.... 444.6 439.0 454.6 453.7 455.5 458.4 467.8 471.7 Corporate profits with IVA and CCAdj... 487.4 548.5 594.2 586.7 615.2 599.3 599.3 588.0 Profits before tax................... 441.5 473.1 505.4 495.6 528.0 509.8 484.2 484.5 Profits tax liability.............. 136.7 151.5 169.8 166.4 178.1 170.1 159.7 159.2 Profits after tax.................. 304.7 321.5 335.6 329.2 349.9 339.6 324.5 325.3 Dividends........................ 179.3 217.1 229.3 224.6 226.1 239.6 237.3 255.0 Undistributed profits............ 125.4 104.4 106.3 104.6 123.8 100.1 87.2 70.2 Inventory valuation adjustment....... -22.6 -1.2 6.9 10.3 4.8 4.3 25.3 9.8 Capital consumption adjustment....... 68.5 76.7 81.9 80.7 82.5 85.3 89.8 93.7 Net interest........................... 104.2 101.2 96.9 99.0 96.3 91.9 93.6 94.9 ---------------------------------------------------------------------------------------- Billions of chained (1992) dollars ---------------------------------------------------------------------------------------- Gross domestic product of nonfinancial corporate business\1\.... 3,745.5 3,914.8 4,154.4 4,117.0 4,198.5 4,247.5 4,309.2 4,348.5 Consumption of fixed capital\2\............ 358.5 374.3 394.6 392.2 397.2 402.1 409.3 417.7 Net domestic product\3\.................... 3,387.0 3,540.5 3,759.8 3,724.9 3,801.3 3,845.5 3,899.9 3,930.9 ---------------------------------------------------------------------------------------- Dollars ---------------------------------------------------------------------------------------- Price, costs, and profits per unit of real gross domestic product of nonfinancial corporate business: Price per unit of real gross domestic product\4\..................... 1.047 1.056 1.063 1.063 1.063 1.063 1.061 1.061 Compensation of employees (unit labor cost)....................... .682 .685 .691 .691 .688 .695 .697 .700 Unit nonlabor cost....................... .234 .231 .228 .230 .228 .227 .226 .227 Consumption of fixed capital........... .100 .100 .100 .100 .100 .100 .099 .100 Indirect business tax and nontax liability plus business transfer payments less subsidies............... .106 .105 .105 .106 .105 .105 .105 .105 Net interest........................... .028 .026 .023 .024 .023 .022 .022 .022 Corporate profits with IVA and CCADj. (unit profits from current production).. .130 .140 .143 .143 .147 .141 .139 .135 Profits tax liability.................. .037 .039 .041 .040 .042 .040 .037 .037 Profits after tax with IVA and CCAdj... .094 .101 .102 .102 .104 .101 .102 .099 ----------------------------------------------------------------------------------------------------------------------------------- 1. Chained-dollar gross domestic product of nonfinancial corporate business equals the current-dollar product deflated by the implicit price deflator for goods and structures in gross domestic product. 2. Chained-dollar consumption of fixed capital of nonfinancial corporate business is calculated as the product of the chain-type quantity index and the 1992 current-dollar value of the corresponding series, divided by 100. 3. Chained-dollar net domestic product of nonfinancial corporate business is the difference between the gross product and the consumption of fixed capital. 4. The deflator for gross domestic product of nonfinancial corporate business divided by 100. IVA Inventory valuation adjustment CCAdj. Capital consumption adjustment Explanatory Note: Measures of Output and Prices This note describes the chain-type quantity and price indexes that, in combination with the current-dollar estimates, provide users with the basic data series from which all other analytical tables and presentations of GDP are derived. Changes in current-dollar GDP measure changes in the market value of goods, services, and structures produced in the economy in a particular period. For many purposes, it is necessary to decompose these changes into quantity and price components. Prices are expressed as index numbers with the base period at present, the year 1992--equal to 100. Quantities, or "real" measures, are expressed as index numbers with the base period (1992) equal to 100. (The current-dollar values and price indexes for most GDP components are determined largely using data from federal government surveys. The real values (expressed with 1992 as the base period) of these components are calculated by deflation at the most detailed level for which all the required data are available by dividing the current-dollar value of the component by its price index, where the price index uses 1992 as the base period.) The annual changes in quantities and prices are calculated using a Fisher formula that incorporates weights from two adjacent years. (Similar formulas are used to calculate the quarterly indexes for the most recent quarters, called the "tail" period and for the indexes for the other quarters, called the "historical period.") For example, the 1996-97 annual percent change in real GDP uses prices for 1996 and 1997 as weights, and the 1996-97 annual percent change in price uses quantities for 1996 and 1997 as weights. These annual changes are "chained" (multiplied) together to form time series of quantity and price. Because the Fisher formula allows for the effects of changes in relative prices and in the composition of output over time, the resulting quantity or price changes are not affected by the substitution bias associated with changes in quantities and prices calculated using a fixed-weighted formula. The Fisher formula also produces changes in quantities and prices that are not affected by the choice of base periods. In addition, because the changes in quantities and prices calculated in this way are symmetric, in general, the product of a quantity index and the corresponding price index equals the current-dollar index. (BEA also publishes a measure of the price level, known as the "implicit price deflator (IPD)," which is calculated as the ratio of 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 for all periods.) Chain-type quantity and price indexes for GDP and its major components are presented in this release as index numbers in table 5 and in the form of percentage changes from the preceding period in tables 1, 4, 6A, and 6B. Contributions by major components to changes in real GDP are presented in table 2. BEA also prepares measures of real GDP and its components in a dollar-denominated form, designated "chained (1992) dollar estimates." For GDP and most other series, these estimates, which are presented in table 3, are computed by multiplying the 1992 current-dollar value by a corresponding quantity index number and then dividing by 100. For example, if a current-dollar GDP component equaled $100 in 1992 and if real output for this component increased 10 percent in 1993, then the chained (1992) dollar value of this component in 1993 would be $110 ($100 x 1.10). For analyses of changes over time in an aggregate or in a component, the percentage changes calculated from the chained-dollar estimates and from the chain-type quantity indexes are the same; any differences will be small and due to rounding. However, because the relative prices used as weights for any period other than the base period differ from those used for the base period, the chained-dollar values for the detailed GDP components will not necessarily sum to the chained-dollar estimate of GDP or to any intermediate aggregate. A measure of the extent of such differences is provided by a "residual" line, which indicates the difference between GDP (or an other major aggregate) and the sum of the most detailed components in the table. For periods close to the base year, when there usually has not been much change in the relative prices that are used as weights for the chain-type index, the residuals tend to be small, and the chained (1992) dollar estimates can be used to approximate the contributions to growth and to aggregate the detailed estimates. As one moves further from the base period, the residual tends to become larger, and the chained-dollar estimates become less useful for analyses of contributions to growth. In particular, for components for which relative prices are changing rapidly, these calculations may be misleading even just a few years from the base year. In such cases, table 2 on contributions provides a better basis for determining the composition of GDP growth than the chained-dollar estimates. References: "A Guide to the NIPA's," March 1998 Survey of Current Business (SCB) pp. 36-40. "BEA's Chain Indexes, Time Series, and Measures of Long-Term Economic Growth," May 1997 SCB, pp. 58-68.