EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, THURSDAY, AUGUST 28, 2008 Lisa S. Mataloni: (202) 606-5304 (GDP) BEA 08-38 Andrew Hodge: (202) 606-5564 (Profits) Recorded message: (202) 606-5306 GROSS DOMESTIC PRODUCT: SECOND QUARTER 2008 (PRELIMINARY) CORPORATE PROFITS: SECOND QUARTER 2008 (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 3.3 percent in the second quarter of 2008, (that is, from the first quarter to the second quarter), according to preliminary estimates released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.9 percent. The GDP estimates released today are based on more complete source data than were available for the advance estimates issued last month. In the advance estimates, the increase in real GDP was 1.9 percent (see "Revisions" on page 3). The increase in real GDP in the second quarter primarily reflected positive contributions from exports, personal consumption expenditures (PCE), federal government spending, nonresidential structures, and state and local government spending that were partly offset by negative contributions from private inventory investment, residential fixed investment, and equipment and software. Imports, which are a subtraction in the calculation of GDP, decreased. The acceleration in real GDP growth in the second quarter primarily reflected a larger decrease in imports, an acceleration in exports, an acceleration in PCE, a smaller decrease in residential fixed investment, and an upturn in state and local government spending that were partly offset by a larger decrease in inventory investment. --------------------------- FOOTNOTE.--Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified. Quarter-to-quarter dollar changes are differences between these published estimates. Percent changes are calculated from unrounded data and are annualized. "Real" estimates are in chained (2000) dollars. Price indexes are chain-type measures. This news release is available on BEA's Web site (www.bea.gov) along with the Technical Note and Highlights related to this release. --------------------------- Final sales of computers contributed 0.15 percentage point to the second-quarter growth in real GDP after contributing 0.05 percentage point to the first-quarter growth. Motor vehicle output subtracted 0.99 percentage point from the second-quarter growth in real GDP after subtracting 0.41 percentage point from the first-quarter growth. The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 4.2 percent in the second quarter, the same as in the advance estimate; this index increased 3.5 percent in the first quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 2.2 percent in the second quarter, the same increase as in the first quarter. Real personal consumption expenditures increased 1.7 percent in the second quarter, compared with an increase of 0.9 percent in the first. Real nonresidential fixed investment increased 2.2 percent, compared with an increase of 2.4 percent. Nonresidential structures increased 13.7 percent, compared with an increase of 8.6 percent. Equipment and software decreased 3.2 percent, compared with a decrease of 0.6 percent. Real residential fixed investment decreased 15.7 percent, compared with a decrease of 25.1 percent. Real exports of goods and services increased 13.2 percent in the second quarter, compared with an increase of 5.1 percent in the first. Real imports of goods and services decreased 7.6 percent, compared with a decrease of 0.8 percent. Real federal government consumption expenditures and gross investment increased 6.8 percent in the second quarter, compared with an increase of 5.8 percent in the first. National defense increased 7.4 percent, compared with an increase of 7.3 percent. Nondefense increased 5.5 percent, compared with an increase of 2.9 percent. Real state and local government consumption expenditures and gross investment increased 2.2 percent, in contrast to a decrease of 0.3 percent. The real change in private inventories subtracted 1.44 percentage points from the second-quarter change in real GDP, after subtracting 0.02 percentage point from the first-quarter change. Private businesses decreased inventories $49.4 billion in the second quarter, following a decrease of $10.2 billion in the first quarter and a decrease of $8.1 billion in the fourth. Real final sales of domestic product -- GDP less change in private inventories -- increased 4.8 percent in the second quarter, compared with an increase of 0.9 percent in the first. Gross domestic purchases Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 0.2 percent in the second quarter, compared with an increase of 0.1 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 2.6 percent in the second quarter, compared with an increase of 0.1 percent in the first. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which decreased $19.4 billion in the second quarter after decreasing $22.5 billion in the first; in the second quarter, receipts decreased $21.6 billion, and payments decreased $2.2 billion. Current-dollar GDP Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 4.6 percent, or $161.7 billion, in the second quarter to a level of $14,312.5 billion. In the first quarter, current-dollar GDP increased 3.5 percent, or $119.6 billion. Revisions The preliminary estimate of the second-quarter increase in real GDP is 1.4 percentage points, or $39.7 billion, more than the advance estimate issued last month. The upward revision to the percentage change in real GDP primarily reflected upward revisions to exports and to private inventory investment and a downward revision to imports. Advance Preliminary (Percent change from preceding quarter) Real GDP....................................... 1.9 3.3 Current-dollar GDP............................. 3.0 4.6 Gross domestic purchases price index........... 4.2 4.2 Corporate Profits Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) decreased $37.8 billion in the second quarter, compared with a decrease of $17.6 billion in the first quarter. Current-production cash flow (net cash flow with inventory valuation and capital consumption adjustments) -- the internal funds available to corporations for investment -- decreased $41.3 billion in the second quarter, in contrast to an increase of $10.1 billion in the first. Taxes on corporate income increased $7.4 billion in the second quarter, in contrast to a decrease of $30.6 billion in the first. Profits after tax with inventory valuation and capital consumption adjustments decreased $45.2 billion in the second quarter, in contrast to an increase of $13.0 billion in the first. Dividends increased $14.0 billion compared with an increase of $16.1 billion; current- production undistributed profits decreased $59.2 billion, compared with a decrease of $3.1 billion. Domestic profits of financial corporations increased $24.7 billion in the second quarter, compared with an increase of $37.3 billion in the first. Domestic profits of nonfinancial corporations decreased $46.9 billion in the second quarter, compared with a decrease of $32.1 billion in the first. In the second quarter, real gross corporate value added increased, and profits per unit of real value added decreased. The decrease in unit profits reflected a decrease in unit prices and an increase in unit nonlabor costs that were partly offset by a decrease in unit labor costs. The rest-of-the-world component of profits decreased $15.6 billion in the second quarter, compared with a decrease of $22.8 billion in the first. This measure is calculated as (1) receipts by U.S. residents of earnings from their foreign affiliates plus dividends received by U.S. residents from unaffiliated foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign parents plus dividends paid by U.S. corporations to unaffiliated foreign residents. The second-quarter decrease was accounted for by a smaller increase in receipts than in payments. Profits before tax increased $20.4 billion in the second quarter, in contrast to a decrease of $143.4 billion in the first. The before-tax measure of profits does not reflect, as does profits from current production, the capital consumption and inventory valuation adjustments. These adjustments convert depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to the current-cost measures used in the national income and product accounts. The capital consumption adjustment decreased $15.0 billion in the second quarter (from -$48.0 billion to -$63.0 billion), in contrast to an increase of $161.2 billion in the first. The inventory valuation adjustment decreased $43.2 billion (from -$109.4 billion to -$152.6 billion), compared with a decrease of $35.3 billion. * * * 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 - September 26, 2008 at 8:30 A.M. EDT for: Gross Domestic Product: Second Quarter 2008 (Final) Corporate Profits: Second Quarter 2008 (Final) Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period [Quarters seasonally adjusted at annual rates] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2005 2006 2007 III 04 IV 04 I 05 II 05 III 05 IV 05 I 06 II 06 III 06 IV 06 I 07 II 07 III 07 IV 07 I 08r II 08r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP). 2.9 2.8 2.0 3.6 2.5 3.0 2.6 3.8 1.3 4.8 2.7 .8 1.5 .1 4.8 4.8 -.2 .9 3.3 Personal consumption expenditures... 3.0 3.0 2.8 3.5 4.2 1.7 3.6 3.7 1.4 4.3 2.8 2.2 3.7 3.9 2.0 2.0 1.0 .9 1.7 Durable goods..................... 4.6 4.5 4.8 7.8 7.0 .6 12.1 5.4 -11.7 18.9 1.8 3.5 4.2 9.2 5.0 2.3 .4 -4.3 -2.5 Nondurable goods.................. 3.4 3.7 2.5 3.1 4.9 2.4 4.2 3.0 4.7 4.4 3.1 2.3 3.1 3.5 1.9 1.2 .3 -.4 4.2 Services.......................... 2.6 2.5 2.6 2.9 3.4 1.7 1.7 3.8 2.5 1.6 2.8 2.0 3.9 3.1 1.4 2.4 1.4 2.4 1.3 Gross private domestic investment... 5.8 2.1 -5.4 8.0 6.4 9.1 -5.1 4.0 12.2 6.2 -.4 -5.3 -15.0 -9.6 6.2 3.5 -11.9 -5.8 -12.0 Fixed investment.................. 6.8 1.9 -3.1 9.3 7.3 5.3 7.6 5.3 2.3 8.3 -2.5 -4.8 -7.6 -3.4 3.0 -.9 -6.2 -5.6 -2.5 Nonresidential.................. 7.2 7.5 4.9 12.3 10.3 3.7 6.3 6.1 3.7 15.9 6.4 5.3 -1.0 3.4 10.3 8.7 3.4 2.4 2.2 Structures.................... 1.3 8.2 12.7 3.6 -.2 7.5 -1.3 -9.2 1.9 15.6 19.7 14.3 2.5 11.2 18.3 20.5 8.5 8.6 13.7 Equipment and software........ 9.3 7.2 1.7 15.5 14.3 2.3 9.2 12.2 4.4 16.3 1.7 2.0 -2.4 .0 6.9 3.6 1.0 -.6 -3.2 Residential..................... 6.3 -7.1 -17.9 4.2 2.4 8.1 9.7 4.0 .2 -3.6 -16.6 -21.4 -19.5 -16.2 -11.5 -20.6 -27.0 -25.1 -15.7 Change in private inventories..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports........................... 7.0 9.1 8.4 3.1 10.0 8.1 8.8 .4 10.9 16.7 5.5 3.5 15.6 .6 8.8 23.0 4.4 5.1 13.2 Goods........................... 7.7 9.9 7.5 6.2 7.2 7.1 14.5 -.8 13.2 18.1 6.7 3.6 10.4 2.1 6.9 21.8 5.1 4.5 16.6 Services........................ 5.6 7.2 10.5 -3.4 16.8 10.2 -2.8 3.2 5.7 13.4 2.7 3.2 28.6 -2.7 13.3 25.9 2.7 6.4 5.9 Imports........................... 5.9 6.0 2.2 4.8 13.8 3.2 .6 .8 15.3 10.3 .1 3.1 2.0 7.7 -3.7 3.0 -2.3 -.8 -7.6 Goods........................... 6.8 6.0 1.7 5.5 14.5 5.0 .7 1.1 17.0 9.0 .5 3.8 -.8 8.4 -4.0 2.4 -2.6 -2.0 -7.6 Services........................ 1.4 6.0 4.4 1.8 10.5 -5.7 .0 -1.0 6.8 17.7 -2.0 -.3 18.4 4.2 -2.0 6.3 -.9 5.5 -7.6 Government consumption expenditures and gross investment............... .4 1.7 2.1 1.6 -1.8 -.2 .9 3.4 -1.7 3.9 1.2 1.7 1.6 .9 3.9 3.8 .8 1.9 3.9 Federal........................... 1.2 2.3 1.6 6.2 -4.6 1.1 1.1 9.7 -7.2 10.0 -1.5 1.9 1.8 -3.6 6.7 7.2 -.5 5.8 6.8 National defense................ 1.5 1.6 2.5 10.9 -9.7 3.1 4.0 12.3 -14.2 8.8 1.9 -.9 7.0 -5.9 8.5 10.2 -.9 7.3 7.4 Nondefense...................... .6 3.6 -.2 -2.7 6.5 -2.7 -4.5 4.4 8.9 12.4 -8.1 7.7 -8.1 1.2 3.1 1.2 .4 2.9 5.5 State and local................... -.1 1.3 2.3 -1.1 -.1 -1.0 .8 -.1 1.6 .5 2.9 1.6 1.5 3.6 2.4 1.9 1.6 -.3 2.2 Addenda: Final sales of domestic product... 3.1 2.8 2.4 3.8 2.7 2.3 4.8 4.1 -.3 5.1 2.3 .9 2.9 1.1 4.3 4.0 .8 .9 4.8 Gross domestic purchases.......... 3.0 2.6 1.4 3.8 3.4 2.5 1.7 3.7 2.5 4.5 2.0 .9 .2 1.2 2.9 2.6 -1.0 .1 .2 Final sales to domestic purchasers....................... 3.1 2.6 1.8 4.0 3.6 1.9 3.7 3.9 1.0 4.8 1.6 1.0 1.5 2.2 2.5 1.9 -.1 .1 1.5 Gross national product (GNP)...... 3.0 2.6 2.2 3.9 1.5 4.7 2.2 4.1 .4 4.9 2.8 .2 2.0 -.3 4.4 6.3 1.3 .1 2.6 Disposable personal income........ 1.4 3.5 2.8 2.9 7.5 -4.7 2.5 -1.3 7.5 5.1 1.3 2.3 5.8 4.4 -.6 3.1 .6 -.7 11.4 Current-dollar measures: GDP............................. 6.3 6.1 4.8 6.0 5.9 7.1 4.8 8.1 5.1 8.6 5.5 3.6 3.7 4.3 6.9 6.3 2.3 3.5 4.6 Final sales of domestic product. 6.5 6.1 5.2 6.1 6.0 6.5 7.0 8.4 3.5 8.8 5.1 3.7 5.2 5.3 6.4 5.6 3.6 3.6 6.1 Gross domestic purchases........ 6.8 6.1 4.2 6.7 7.2 6.3 4.8 9.1 6.5 7.5 5.7 3.8 .7 5.0 6.4 4.9 2.6 3.5 4.5 Final sales to domestic purchasers..................... 6.9 6.1 4.6 6.8 7.3 5.7 6.9 9.4 5.0 7.8 5.3 3.9 2.1 5.9 5.9 4.2 3.9 3.7 5.9 GNP............................. 6.4 5.9 4.9 6.3 4.8 8.8 4.4 8.4 4.2 8.7 5.6 3.0 4.1 4.0 6.4 7.9 3.9 2.6 3.9 Disposable personal income...... 4.4 6.4 5.5 4.9 10.8 -2.4 5.1 3.4 11.1 6.9 4.6 5.4 5.3 7.9 3.0 5.7 4.9 2.9 16.1 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. 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] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2005 2006 2007 III 04 IV 04 I 05 II 05 III 05 IV 05 I 06 II 06 III 06 IV 06 I 07 II 07 III 07 IV 07 I 08 II 08r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Percent change at annual rate: Gross domestic product.......... 2.9 2.8 2.0 3.6 2.5 3.0 2.6 3.8 1.3 4.8 2.7 .8 1.5 .1 4.8 4.8 -.2 .9 3.3 Percentage points at annual rates: Personal consumption expenditures. 2.13 2.13 1.95 2.46 2.93 1.25 2.50 2.59 .94 2.86 1.88 1.52 2.55 2.71 1.42 1.44 .67 .61 1.24 Durable goods................... .38 .36 .38 .64 .57 .04 .95 .44 -1.02 1.37 .14 .27 .33 .71 .40 .19 .03 -.33 -.19 Motor vehicles and parts...... -.01 -.09 .07 .17 .23 -.32 .53 .15 -1.59 .53 .06 .06 .01 .30 .05 -.22 -.03 -.35 -.62 Furniture and household equipment.................... .30 .35 .24 .36 .25 .26 .29 .37 .41 .55 .15 .20 .23 .34 .17 .26 .11 .05 .39 Other......................... .08 .10 .08 .10 .09 .11 .13 -.08 .17 .29 -.06 .00 .09 .07 .17 .15 -.06 -.04 .04 Nondurable goods................ .69 .74 .50 .62 .97 .49 .83 .59 .93 .85 .62 .46 .62 .71 .40 .25 .05 -.08 .87 Food.......................... .36 .38 .18 .21 .60 .32 .29 .45 .37 .50 .43 .10 .20 .12 .27 .03 .27 .13 .37 Clothing and shoes............ .17 .16 .13 .15 .23 .15 .27 .00 .35 .18 .02 .14 .12 .25 .08 .12 -.09 .08 .27 Gasoline, fuel oil, and other energy goods................. -.01 -.05 .02 -.03 .00 -.09 .09 .02 -.04 -.17 -.11 .03 .03 .13 -.07 -.01 -.05 -.18 -.11 Other......................... .17 .25 .17 .29 .14 .12 .17 .11 .25 .33 .27 .19 .26 .22 .12 .11 -.08 -.10 .33 Services........................ 1.06 1.02 1.07 1.21 1.39 .72 .72 1.55 1.02 .64 1.12 .79 1.61 1.29 .62 1.00 .59 1.02 .56 Housing....................... .33 .34 .16 .29 .31 .34 .36 .39 .35 .37 .31 .25 .22 .12 .09 .08 .12 .05 .18 Household operation........... .06 -.02 .07 .06 .15 .01 .02 .15 -.01 -.42 .26 .10 .03 .08 .02 .06 .09 .07 .12 Electricity and gas......... .04 -.05 .03 -.05 .15 .03 .00 .12 -.04 -.42 .20 .05 -.01 .07 -.04 .02 .01 .11 .11 Other household operation... .03 .03 .04 .12 .01 -.02 .01 .04 .03 .01 .06 .05 .04 .00 .06 .04 .08 -.05 .01 Transportation................ .03 .05 .05 .02 .06 .02 .02 .02 .01 .08 .08 .03 .10 .03 .04 .06 -.02 .04 -.04 Medical care.................. .40 .31 .35 .52 .40 .31 .37 .48 .39 .37 .15 .07 .35 .63 .13 .45 .48 .59 .42 Recreation.................... .06 .09 .13 .09 .03 .08 .02 .04 .04 .08 .04 .18 .36 .06 .08 .07 -.01 -.14 .04 Other......................... .18 .24 .31 .22 .44 -.03 -.08 .46 .24 .16 .27 .15 .55 .37 .27 .28 -.08 .40 -.15 Gross private domestic investment. .95 .35 -.90 1.26 1.04 1.48 -.86 .69 1.98 1.15 -.02 -.92 -2.68 -1.63 .94 .54 -1.93 -.89 -1.82 Fixed investment................ 1.08 .32 -.50 1.41 1.14 .85 1.21 .88 .41 1.39 -.40 -.81 -1.27 -.57 .47 -.15 -.97 -.86 -.38 Nonresidential................ .71 .77 .52 1.16 1.00 .37 .64 .64 .40 1.62 .71 .59 -.09 .33 1.07 .91 .36 .26 .25 Structures.................. .03 .23 .40 .09 .00 .19 -.04 -.26 .05 .42 .54 .42 .08 .35 .57 .65 .29 .30 .48 Equipment and software...... .67 .54 .13 1.07 1.01 .18 .68 .90 .35 1.20 .16 .17 -.18 -.02 .50 .26 .07 -.04 -.24 Information processing equipment and software... .29 .32 .34 .24 .41 .23 .31 .36 .33 .61 .15 .34 .04 .57 .41 .31 .37 .27 .40 Computers and peripheral equipment.............. .10 .15 .11 .19 .24 -.06 .12 .09 .22 .16 .17 .13 .02 .17 .09 .12 .12 .10 .06 Software................ .11 .06 .15 .11 .17 .07 .16 .04 .10 .03 .02 .07 .14 .21 .22 .10 .16 .16 .17 Other................... .08 .11 .08 -.06 .00 .22 .03 .23 .02 .41 -.04 .14 -.11 .19 .09 .09 .10 .00 .17 Industrial equipment...... .10 .07 .02 .19 .06 .12 -.04 .19 .19 -.07 .25 -.12 -.02 -.10 .34 -.04 -.20 .01 -.04 Transportation equipment.. .17 .09 -.17 .43 .40 -.20 .24 .31 -.24 .52 -.25 .06 -.15 -.21 -.32 -.07 -.18 -.16 -.55 Other equipment........... .11 .05 -.07 .20 .13 .04 .17 .04 .07 .15 .02 -.12 -.05 -.28 .07 .06 .08 -.16 -.04 Residential................... .37 -.45 -1.02 .24 .14 .48 .57 .25 .01 -.23 -1.11 -1.40 -1.18 -.91 -.60 -1.06 -1.33 -1.12 -.62 Change in private inventories... -.13 .03 -.40 -.14 -.11 .63 -2.07 -.19 1.56 -.24 .38 -.11 -1.41 -1.06 .47 .69 -.96 -.02 -1.44 Farm.......................... -.06 -.03 .04 -.32 -.14 -.22 .14 .19 -.15 .02 -.24 .00 .12 -.07 .14 -.08 .47 -.17 -.17 Nonfarm....................... -.07 .06 -.44 .18 .03 .85 -2.20 -.39 1.71 -.26 .62 -.12 -1.52 -.99 .33 .77 -1.43 .15 -1.27 Net exports of goods and services. -.21 -.02 .58 -.42 -1.07 .28 .79 -.07 -1.26 .09 .59 -.12 1.33 -1.20 1.66 2.03 .94 .77 3.10 Exports......................... .71 .96 .95 .31 .97 .80 .89 .04 1.09 1.70 .58 .39 1.66 .06 1.01 2.54 .53 .63 1.65 Goods......................... .54 .73 .59 .42 .49 .49 .98 -.06 .91 1.27 .49 .28 .78 .15 .55 1.66 .43 .39 1.42 Services...................... .17 .23 .36 -.11 .49 .31 -.09 .10 .18 .42 .09 .11 .87 -.09 .46 .88 .10 .24 .23 Imports......................... -.93 -.98 -.37 -.73 -2.04 -.52 -.10 -.11 -2.35 -1.61 .01 -.51 -.33 -1.25 .65 -.51 .40 .14 1.45 Goods......................... -.89 -.82 -.25 -.69 -1.78 -.67 -.10 -.14 -2.18 -1.18 -.04 -.51 .13 -1.14 .59 -.34 .38 .29 1.21 Services...................... -.04 -.16 -.12 -.05 -.26 .15 .00 .03 -.17 -.43 .05 .01 -.46 -.11 .06 -.17 .02 -.15 .23 Government consumption expenditures and gross investment............. .07 .32 .40 .30 -.35 -.04 .17 .65 -.34 .72 .23 .32 .30 .17 .77 .75 .16 .38 .76 Federal......................... .09 .16 .11 .43 -.33 .08 .08 .66 -.53 .66 -.11 .13 .12 -.26 .47 .51 -.04 .41 .49 National defense.............. .07 .08 .12 .49 -.48 .14 .18 .56 -.73 .39 .09 -.04 .32 -.29 .40 .48 -.04 .34 .36 Consumption expenditures.... .04 .04 .11 .34 -.45 .22 .06 .45 -.70 .40 -.02 .00 .14 -.08 .28 .45 -.06 .31 .15 Gross investment............ .03 .04 .01 .15 -.04 -.08 .12 .11 -.02 -.01 .11 -.05 .18 -.21 .12 .03 .02 .04 .21 Nondefense.................... .01 .08 .00 -.06 .15 -.07 -.11 .10 .20 .27 -.20 .17 -.20 .03 .07 .03 .01 .06 .12 Consumption expenditures..... .00 .05 .00 -.04 .12 -.03 -.12 .03 .10 .22 -.14 .15 -.20 .06 .02 .03 -.02 .06 .08 Gross investment............. .01 .03 .00 -.03 .03 -.03 .01 .07 .10 .05 -.07 .03 .01 -.04 .05 -.01 .02 .01 .05 State and local................. -.01 .16 .28 -.13 -.01 -.12 .10 -.01 .19 .06 .34 .19 .18 .43 .30 .24 .19 -.03 .27 Consumption expenditures.... .01 .16 .20 .04 .11 -.13 .02 .06 .09 .23 .16 .24 .23 .20 .17 .15 .15 .14 .14 Gross investment............ -.03 .00 .09 -.17 -.12 .01 .08 -.07 .10 -.18 .18 -.05 -.06 .24 .13 .09 .04 -.18 .13 Addenda: Goods........................... 1.35 1.67 .97 2.06 1.18 1.12 1.49 1.68 .65 3.40 1.84 .51 .42 -.80 3.08 2.71 .01 .29 1.89 Services........................ 1.25 1.35 1.61 1.40 1.41 1.24 .59 2.23 .52 1.48 1.26 1.29 2.19 1.26 1.61 2.35 .79 1.62 1.40 Structures...................... .34 -.24 -.55 .14 -.03 .62 .54 -.06 .15 -.07 -.42 -1.00 -1.10 -.41 .09 -.30 -.97 -1.03 -.01 Motor vehicle output............ .13 -.03 -.03 .87 -.34 .15 .24 .76 -1.22 .59 -.34 .40 -.65 .10 .13 .47 -.86 -.41 -.99 Final sales of computers........ .15 .15 .13 .13 .29 .06 .22 .07 .21 .16 .15 .04 .20 -.03 .21 .28 .14 .05 .15 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised See "Explanatory Note" at the end of the tables. Table 3.--Gross Domestic Product and Related Measures: Level and Change From Preceding Period ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Billions of current dollars Billions of chained (2000) dollars ------------------------------------------------------ ------------------------------------------------------------------------------- Seasonally adjusted Seasonally adjusted Change from preceding at annual rates at annual rates period -------------------------------------------- -------------------------------------------- ------------------------- 2007 II 07 III 07 IV 07 I 08 II 08r 2007 II 07 III 07 IV 07 I 08 II 08r 2007 I 08 II 08r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product....... 13,807.5 13,737.5 13,950.6 14,031.2 14,150.8 14,312.5 11,523.9 11,491.4 11,625.7 11,620.7 11,646.0 11,740.3 229.1 25.3 94.3 Personal consumption expenditures. 9,710.2 9,657.5 9,765.6 9,892.7 10,002.3 10,150.0 8,252.8 8,237.3 8,278.5 8,298.2 8,316.1 8,352.2 223.8 17.9 36.1 Durable goods................... 1,082.8 1,085.3 1,086.2 1,083.0 1,071.0 1,060.0 1,242.4 1,242.3 1,249.4 1,250.6 1,237.0 1,229.1 57.3 -13.6 -7.9 Motor vehicles and parts...... 440.4 444.0 437.9 437.8 424.7 401.2 446.7 451.3 443.5 442.6 430.2 407.8 8.8 -12.4 -22.4 Furniture and household equipment.................... 415.3 415.2 417.2 415.3 415.1 423.2 594.0 588.3 600.8 606.6 609.3 629.9 43.8 2.7 20.6 Other......................... 227.0 226.2 231.1 229.9 231.3 235.6 228.3 227.7 232.9 230.8 229.4 230.7 10.3 -1.4 1.3 Nondurable goods................ 2,833.0 2,817.7 2,846.6 2,906.2 2,950.7 3,028.9 2,392.6 2,391.5 2,398.6 2,400.2 2,397.9 2,422.6 57.3 -2.3 24.7 Food.......................... 1,329.1 1,321.2 1,337.9 1,359.8 1,380.5 1,415.5 1,110.5 1,110.1 1,110.9 1,118.7 1,122.4 1,133.0 20.4 3.7 10.6 Clothing and shoes............ 374.0 372.9 375.4 373.2 375.5 382.3 412.9 412.2 416.6 413.2 416.3 427.0 18.5 3.1 10.7 Gasoline, fuel oil, and other energy goods................. 366.9 362.7 367.1 405.3 423.7 445.4 198.1 198.0 197.9 197.0 194.0 192.3 1.6 -3.0 -1.7 Other......................... 762.9 761.0 766.1 767.9 771.1 785.7 687.3 687.1 690.5 687.9 684.8 695.2 21.2 -3.1 10.4 Services........................ 5,794.4 5,754.4 5,832.8 5,903.5 5,980.6 6,061.1 4,646.2 4,632.7 4,659.8 4,676.1 4,704.3 4,719.9 116.3 28.2 15.6 Housing....................... 1,460.9 1,453.8 1,466.9 1,482.7 1,495.1 1,508.8 1,171.7 1,170.4 1,172.5 1,175.9 1,177.3 1,182.3 17.1 1.4 5.0 Household operation........... 525.7 524.0 526.9 534.3 541.7 565.1 421.2 419.8 421.5 424.0 425.9 429.2 7.7 1.9 3.3 Electricity and gas......... 218.8 219.0 218.3 221.1 228.1 247.3 151.1 150.6 151.0 151.2 154.0 156.5 2.8 2.8 2.5 Other household operation... 306.9 305.0 308.6 313.2 313.6 317.8 270.9 270.0 271.3 273.9 272.5 272.9 4.8 -1.4 .4 Transportation................ 357.0 354.2 360.4 362.9 368.8 374.3 299.2 298.8 300.5 299.9 301.2 300.0 5.5 1.3 -1.2 Medical care.................. 1,681.1 1,663.0 1,690.2 1,721.9 1,746.6 1,772.1 1,327.8 1,319.4 1,331.4 1,344.5 1,360.8 1,372.2 37.6 16.3 11.4 Recreation.................... 403.4 402.0 405.9 409.7 408.2 412.3 335.0 334.6 336.6 336.3 332.3 333.3 14.3 -4.0 1.0 Other......................... 1,366.3 1,357.4 1,382.5 1,392.0 1,420.2 1,428.5 1,089.9 1,088.4 1,096.0 1,093.9 1,105.0 1,100.9 34.0 11.1 -4.1 Gross private domestic investment. 2,130.4 2,147.2 2,164.0 2,092.3 2,056.1 1,999.9 1,809.7 1,822.9 1,838.7 1,781.3 1,754.7 1,699.8 -102.8 -26.6 -54.9 Fixed investment................ 2,134.0 2,148.1 2,141.0 2,113.4 2,081.7 2,074.4 1,808.5 1,821.3 1,817.0 1,788.2 1,762.4 1,751.1 -57.0 -25.8 -11.3 Nonresidential................ 1,503.8 1,493.7 1,522.9 1,542.1 1,553.6 1,571.2 1,382.9 1,373.8 1,402.9 1,414.7 1,423.1 1,431.0 64.7 8.4 7.9 Structures.................. 480.3 469.8 492.9 508.7 522.7 544.6 304.6 298.9 313.2 319.7 326.4 337.0 34.3 6.7 10.6 Equipment and software...... 1,023.5 1,023.9 1,030.0 1,033.4 1,030.9 1,026.6 1,078.9 1,077.9 1,087.5 1,090.1 1,088.6 1,079.7 17.9 -1.5 -8.9 Information processing equipment and software... 517.7 514.1 521.1 532.5 539.6 554.5 653.9 647.3 660.9 677.6 689.6 707.7 57.3 12.0 18.1 Computers and peripheral equipment.............. 93.7 92.8 93.7 95.7 95.8 96.1 ..... ..... ..... ..... ..... ..... ..... ..... ..... Software................ 227.3 225.8 229.5 235.6 241.8 249.3 237.0 235.7 239.4 245.1 251.0 257.1 21.5 5.9 6.1 Other................... 196.8 195.5 197.9 201.2 202.0 209.2 218.0 216.2 219.6 223.5 223.6 230.4 11.3 .1 6.8 Industrial equipment...... 180.6 185.1 185.2 179.9 182.0 183.3 155.7 160.3 159.1 153.1 153.4 152.1 2.2 .3 -1.3 Transportation equipment.. 157.2 157.8 154.6 148.4 142.1 122.3 139.4 139.4 137.4 131.9 127.0 109.4 -20.1 -4.9 -17.6 Other equipment........... 168.0 166.9 169.2 172.6 167.3 166.5 148.4 147.5 149.2 151.5 146.5 145.3 -8.1 -5.0 -1.2 Residential................... 630.2 654.4 618.1 571.3 528.1 503.2 453.8 471.7 445.3 411.6 383.0 366.9 -99.1 -28.6 -16.1 Change in private inventories... -3.6 -.9 23.0 -21.1 -25.6 -74.5 -2.5 -2.8 16.0 -8.1 -10.2 -49.4 -44.8 -2.1 -39.2 Farm.......................... 1.6 2.9 -.2 5.7 .2 -5.3 1.0 -.1 -2.5 10.5 6.0 1.7 4.2 -4.5 -4.3 Nonfarm....................... -5.2 -3.8 23.2 -26.7 -25.8 -69.2 -3.7 -2.6 19.2 -20.6 -17.9 -52.9 -50.0 2.7 -35.0 Net exports of goods and services. -707.8 -723.1 -682.6 -696.7 -705.7 -710.0 -546.5 -571.2 -511.8 -484.5 -462.0 -376.6 69.2 22.5 85.4 Exports......................... 1,662.4 1,614.4 1,714.9 1,759.7 1,820.8 1,927.6 1,425.9 1,392.2 1,466.2 1,482.1 1,500.6 1,547.9 111.1 18.5 47.3 Goods......................... 1,149.2 1,116.8 1,181.2 1,213.7 1,256.9 1,345.5 998.7 974.9 1,024.1 1,037.0 1,048.6 1,089.6 70.0 11.6 41.0 Services...................... 513.2 497.6 533.8 546.0 563.9 582.1 426.9 417.0 441.8 444.7 451.7 458.2 40.6 7.0 6.5 Imports......................... 2,370.2 2,337.5 2,397.5 2,456.5 2,526.5 2,637.6 1,972.4 1,963.4 1,978.0 1,966.5 1,962.6 1,924.5 41.9 -3.9 -38.1 Goods......................... 1,985.2 1,957.1 2,005.4 2,060.9 2,118.0 2,221.4 1,677.7 1,671.2 1,681.1 1,670.2 1,662.0 1,629.6 28.7 -8.2 -32.4 Services...................... 385.1 380.5 392.1 395.6 408.5 416.1 296.4 293.9 298.4 297.8 301.8 295.9 12.7 4.0 -5.9 Government consumption expenditures and gross investment............. 2,674.8 2,655.9 2,703.5 2,742.9 2,798.1 2,872.5 2,012.1 2,006.4 2,025.3 2,029.4 2,039.1 2,058.5 40.9 9.7 19.4 Federal......................... 979.3 974.6 994.0 998.3 1,026.5 1,056.5 752.9 749.6 762.7 761.7 772.6 785.5 11.9 10.9 12.9 National defense.............. 662.2 656.8 675.6 679.3 699.9 723.7 502.1 498.8 511.0 509.9 518.9 528.3 12.1 9.0 9.4 Consumption expenditures.... 580.1 574.8 591.9 594.7 613.8 629.2 425.8 422.4 433.5 431.9 439.7 443.5 10.8 7.8 3.8 Gross investment............ 82.1 82.1 83.7 84.6 86.1 94.5 78.0 78.3 79.3 79.9 81.0 88.1 1.3 1.1 7.1 Nondefense.................... 317.1 317.8 318.3 319.0 326.6 332.8 250.4 250.5 251.2 251.5 253.2 256.6 -.4 1.7 3.4 Consumption expenditures.... 276.0 276.4 277.2 276.9 284.2 288.7 211.7 211.5 212.4 212.0 213.5 215.6 -.5 1.5 2.1 Gross investment............ 41.1 41.4 41.2 42.1 42.4 44.1 39.3 39.6 39.4 40.2 40.5 42.0 .0 .3 1.5 State and local................. 1,695.5 1,681.3 1,709.5 1,744.6 1,771.6 1,816.0 1,259.0 1,256.6 1,262.6 1,267.5 1,266.7 1,273.6 28.8 -.8 6.9 Consumption expenditures.... 1,355.9 1,344.4 1,365.3 1,395.2 1,426.3 1,462.9 1,008.0 1,006.1 1,010.0 1,013.9 1,017.6 1,021.0 19.8 3.7 3.4 Gross investment............ 339.6 336.9 344.2 349.4 345.3 353.1 250.9 250.3 252.5 253.4 249.0 252.4 9.1 -4.4 3.4 Residual.......................... ..... ..... ..... ..... ..... ..... -152.7 -145.3 -158.2 -171.9 -178.7 -189.9 ..... ..... ..... Addenda: Final sales of domestic product. 13,811.2 13,738.4 13,927.6 14,052.3 14,176.4 14,386.9 11,523.4 11,490.5 11,605.0 11,628.0 11,653.7 11,790.3 274.1 25.7 136.6 Gross domestic purchases........ 14,515.3 14,460.6 14,633.1 14,728.0 14,856.6 15,022.5 12,066.8 12,058.2 12,135.1 12,103.2 12,105.8 12,110.5 162.7 2.6 4.7 Final sales to domestic purchasers..................... 14,519.0 14,461.5 14,610.1 14,749.0 14,882.2 15,097.0 12,066.0 12,057.0 12,114.1 12,109.8 12,113.3 12,159.5 207.5 3.5 46.2 Gross domestic product.......... 13,807.5 13,737.5 13,950.6 14,031.2 14,150.8 14,312.5 11,523.9 11,491.4 11,625.7 11,620.7 11,646.0 11,740.3 229.1 25.3 94.3 Plus: Income receipts from the rest of the world.......... 861.7 852.8 898.5 907.4 843.2 825.4 719.9 714.3 749.3 749.9 690.9 669.3 97.7 -59.0 -21.6 Less: Income payments to the rest of the world.......... 759.3 793.2 786.3 742.0 705.1 710.2 633.3 663.1 654.1 611.7 575.2 573.0 79.2 -36.5 -2.2 Equals: Gross national product.. 13,910.0 13,797.2 14,062.8 14,196.6 14,289.0 14,427.7 11,609.8 11,541.7 11,719.9 11,758.3 11,760.9 11,835.9 247.5 2.6 75.0 Net domestic product............ 12,087.1 12,030.5 12,218.6 12,272.6 12,372.9 12,508.0 10,025.9 10,003.2 10,120.3 10,096.1 10,093.2 10,163.9 176.3 -2.9 70.7 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised Note.--Users are cautioned that particularly for components that exhibit rapid change in prices relative to other prices in the economy, the chained-dollar estimates should not be used to measure the component's relative importance or its contribution to the growth rate of more aggregate series. For accurate estimates of the contributions to percent changes in real GDP, use table 2. See "Explanatory Note" at the end of the tables. Table 4.--Price Indexes for Gross Domestic Product and Related Measures: Percent Change From Preceding Period [Quarters seasonally adjusted at annual rates] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2005 2006 2007 III 04 IV 04 I 05 II 05 III 05 IV 05 I 06 II 06 III 06 IV 06 I 07 II 07 III 07 IV 07 I 08 II 08r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP). 3.3 3.2 2.7 2.3 3.2 4.0 2.1 4.1 3.7 3.5 2.7 2.8 2.2 4.1 2.0 1.5 2.8 2.6 1.2 Personal consumption expenditures... 2.9 2.8 2.6 2.0 3.0 2.5 2.5 4.7 3.3 1.8 3.3 3.1 -.5 3.4 3.6 2.5 4.3 3.6 4.2 Durable goods..................... -.8 -1.3 -1.8 -2.5 .2 .4 -.9 -3.1 -.9 -.9 -.8 -1.3 -2.7 -1.8 -1.6 -1.9 -1.6 -.1 -1.6 Nondurable goods.................. 3.7 3.0 3.0 1.4 4.7 1.5 2.0 11.2 2.3 .3 4.9 4.4 -6.2 5.1 6.4 2.9 8.4 6.7 6.6 Services.......................... 3.3 3.5 3.3 3.1 2.8 3.3 3.5 3.3 4.7 3.0 3.3 3.3 2.8 3.6 3.3 3.1 3.5 2.8 4.1 Gross private domestic investment... 4.4 4.2 1.4 3.9 3.9 4.7 4.0 5.0 5.4 5.2 3.5 1.6 3.3 1.6 -.3 -.3 1.3 -.5 .8 Fixed investment.................. 4.5 4.2 1.4 3.9 3.9 4.7 4.2 5.3 5.7 5.0 3.4 1.5 3.2 1.6 -.2 -.4 1.2 -.2 1.2 Nonresidential.................. 2.9 3.3 1.4 1.3 2.5 4.4 2.7 2.0 4.4 4.3 3.3 1.7 2.9 1.3 .3 -.6 1.7 .6 2.3 Structures.................... 11.8 12.3 3.8 10.1 12.0 11.9 10.1 14.8 17.0 14.1 12.0 4.6 6.7 3.4 .7 .5 4.5 2.7 3.6 Equipment and software........ -.1 .1 .3 -1.7 -.6 1.8 .1 -2.3 .2 .7 -.1 .5 1.2 .4 .1 -1.2 .4 -.4 1.6 Residential..................... 7.2 5.9 1.5 8.5 6.2 5.2 6.8 11.0 7.8 6.4 3.7 1.2 3.9 2.2 -1.3 .3 .0 -2.6 -2.1 Change in private inventories..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports........................... 3.6 3.5 3.5 1.9 4.2 4.6 3.5 2.5 3.2 2.9 5.8 4.7 -.8 3.6 5.3 3.5 6.2 9.1 10.9 Goods........................... 3.1 3.3 3.5 1.0 3.6 4.3 3.0 1.3 2.2 3.0 6.2 5.2 .0 3.3 5.1 2.8 6.0 10.0 12.6 Services........................ 4.9 3.8 3.5 3.8 5.5 5.2 4.6 5.3 5.5 2.7 4.9 3.7 -2.6 4.3 5.9 5.2 6.6 6.9 7.2 Imports........................... 6.3 4.3 3.7 5.3 6.9 2.3 9.7 10.3 4.5 -1.1 10.3 5.0 -9.1 .9 12.8 7.4 12.8 12.8 28.5 Goods........................... 6.5 4.2 3.6 5.0 7.0 2.1 10.0 10.8 5.0 -2.0 10.4 5.4 -10.1 .8 13.0 7.7 14.5 13.8 30.9 Services........................ 5.7 4.8 3.7 6.7 6.0 3.5 7.9 7.8 2.0 4.1 9.9 3.2 -3.8 1.1 11.7 6.1 4.5 7.8 16.5 Government consumption expenditures and gross investment............... 5.9 4.7 4.5 4.8 5.7 7.7 4.1 7.0 4.8 4.9 4.9 3.3 2.3 6.4 5.2 3.4 5.1 6.2 6.9 Federal........................... 4.8 4.1 3.4 2.5 2.6 11.8 1.7 3.1 .8 10.2 4.1 1.2 .9 7.6 3.7 .9 2.3 5.6 5.0 National defense................ 5.2 4.5 3.5 2.9 3.1 12.6 1.8 3.2 1.3 10.9 4.4 1.5 .7 7.0 4.3 1.6 3.1 5.1 6.4 Nondefense...................... 4.0 3.4 3.1 1.4 1.7 10.2 1.6 3.0 -.1 8.9 3.5 .5 1.2 8.8 2.6 -.5 .5 6.8 2.2 State and local................... 6.5 5.1 5.1 6.2 7.6 5.3 5.6 9.4 7.3 2.0 5.4 4.6 3.2 5.7 6.1 4.9 6.8 6.6 8.1 Addenda: Final sales of domestic product... 3.3 3.2 2.7 2.3 3.2 4.0 2.1 4.1 3.8 3.5 2.7 2.7 2.2 4.1 2.0 1.5 2.8 2.7 1.2 Gross domestic purchases.......... 3.7 3.4 2.8 2.8 3.6 3.7 3.1 5.2 3.9 2.9 3.6 2.9 .6 3.6 3.3 2.2 4.0 3.5 4.2 Final sales to domestic purchasers....................... 3.7 3.4 2.8 2.7 3.6 3.7 3.1 5.2 4.0 2.8 3.6 2.9 .6 3.7 3.3 2.2 4.0 3.5 4.3 Gross national product (GNP)...... 3.3 3.2 2.7 2.3 3.2 4.0 2.1 4.1 3.7 3.5 2.7 2.8 2.2 4.1 2.0 1.5 2.8 2.6 1.2 Implicit price deflators: GDP............................. 3.3 3.2 2.7 2.3 3.2 4.0 2.1 4.1 3.8 3.6 2.7 2.7 2.2 4.2 2.0 1.5 2.5 2.6 1.3 Gross domestic purchases........ 3.7 3.4 2.8 2.7 3.7 3.7 3.1 5.2 4.0 2.9 3.6 2.9 .6 3.7 3.3 2.2 3.7 3.4 4.4 GNP............................. 3.3 3.2 2.7 2.3 3.2 4.0 2.1 4.1 3.8 3.6 2.7 2.8 2.1 4.2 2.0 1.5 2.5 2.5 1.3 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised See "Explanatory Note" at the end of the tables. Table 5.--Real Gross Domestic Product, Quantity Indexes [Index numbers, 2000=100] ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted --------------------------------------------------- 2005 2006 2007 II 07 III 07 IV 07 I 08 II 08r ----------------------------------------------------------------------------------------------------------------------------------- Gross domestic product............. 111.944 115.054 117.388 117.056 118.425 118.374 118.631 119.592 Personal consumption expenditures.......... 115.615 119.135 122.456 122.226 122.838 123.130 123.395 123.931 Durable goods............................ 131.397 137.274 143.908 143.894 144.720 144.856 143.284 142.373 Nondurable goods......................... 115.687 119.930 122.872 122.815 123.182 123.261 123.147 124.416 Services................................. 112.525 115.298 118.259 117.916 118.605 119.020 119.739 120.135 Gross private domestic investment.......... 107.953 110.200 104.278 105.040 105.950 102.639 101.110 97.943 Fixed investment......................... 108.984 111.109 107.717 108.475 108.218 106.503 104.969 104.294 Nonresidential......................... 99.520 106.987 112.244 111.502 113.863 114.819 115.504 116.147 Structures........................... 79.747 86.318 97.264 95.447 100.005 102.076 104.206 107.605 Equipment and software............... 107.695 115.467 117.412 117.302 118.348 118.636 118.470 117.500 Residential............................ 133.226 123.728 101.534 105.552 99.644 92.110 85.698 82.105 Change in private inventories............ ..... ..... ..... ..... ..... ..... ..... ..... Exports of goods and services.............. 109.942 119.937 130.068 126.992 133.747 135.189 136.880 141.195 Imports of goods and services.............. 123.455 130.815 133.654 133.041 134.033 133.254 132.991 130.405 Government consumption expenditures and gross investment.......................... 112.626 114.497 116.871 116.541 117.642 117.879 118.443 119.568 Federal.................................. 125.181 128.019 130.078 129.507 131.772 131.610 133.488 135.709 State and local.......................... 106.256 107.642 110.167 109.957 110.484 110.914 110.844 111.440 Addenda: Final sales of domestic product.......... 112.159 115.254 118.062 117.725 118.898 119.133 119.397 120.796 Gross domestic purchases................. 113.744 116.748 118.343 118.259 119.013 118.700 118.726 118.772 Final sales to domestic purchasers....... 113.959 116.948 118.995 118.906 119.469 119.427 119.461 119.917 Gross national product................... 112.340 115.284 117.795 117.104 118.913 119.302 119.329 120.089 ----------------------------------------------------------------------------------------------------------------------------------- r Revised See "Explanatory Note" at the end of the tables. Table 6.--Price Indexes for Gross Domestic Product [Index numbers, 2000=100] ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted --------------------------------------------------- 2005 2006 2007 II 07 III 07 IV 07 I 08 II 08r ----------------------------------------------------------------------------------------------------------------------------------- Gross domestic product............. 113.039 116.676 119.819 119.531 119.984 120.826 121.613 121.973 Personal consumption expenditures (PCE)..................................... 111.581 114.675 117.659 117.246 117.969 119.221 120.283 121.530 Durable goods............................ 89.984 88.772 87.154 87.365 86.938 86.598 86.581 86.236 Nondurable goods......................... 111.606 114.984 118.407 117.830 118.682 121.092 123.059 125.031 Services................................. 116.700 120.752 124.712 124.218 125.179 126.253 127.133 128.420 Gross private domestic investment.......... 111.381 116.102 117.735 117.659 117.566 117.960 117.815 118.039 Fixed investment......................... 111.638 116.380 117.995 117.945 117.836 118.189 118.117 118.466 Nonresidential......................... 103.829 107.277 108.739 108.730 108.558 109.015 109.177 109.798 Structures........................... 135.177 151.822 157.662 157.195 157.402 159.138 160.182 161.607 Equipment and software............... 94.534 94.594 94.870 94.992 94.712 94.798 94.700 95.082 Residential............................ 129.268 136.897 138.884 138.733 138.820 138.803 137.900 137.173 Change in private inventories............ ..... ..... ..... ..... ..... ..... ..... ..... Exports of goods and services.............. 108.814 112.618 116.586 116.011 117.018 118.794 121.397 124.590 Imports of goods and services.............. 111.154 115.932 120.168 119.050 121.200 124.907 128.722 137.046 Government consumption expenditures and gross investment.......................... 121.470 127.239 132.941 132.386 133.497 135.174 137.237 139.561 Federal.................................. 120.834 125.806 130.076 130.037 130.342 131.070 132.879 134.524 State and local.......................... 121.862 128.109 134.671 133.806 135.400 137.649 139.866 142.605 Addenda: PCE excluding food and energy............ 109.644 112.129 114.548 114.201 114.797 115.512 116.158 116.756 Market-based PCE\1\...................... 110.316 113.167 115.893 115.533 116.118 117.371 118.452 119.731 Market-based PCE excluding food and energy\1\........................... 107.657 109.715 111.700 111.434 111.831 112.439 113.021 113.527 Final sales of domestic product.......... 113.074 116.710 119.853 119.569 120.020 120.856 121.653 122.031 Gross domestic purchases................. 113.263 117.066 120.294 119.908 120.571 121.766 122.821 124.105 Final sales to domestic purchasers....... 113.299 117.101 120.329 119.946 120.609 121.798 122.863 124.162 Gross national product................... 113.036 116.673 119.815 119.529 119.978 120.822 121.601 121.963 Implicit price deflators: Gross domestic product................. 113.034 116.676 119.816 119.547 119.997 120.743 121.508 121.909 Final sales of domestic product........ 113.074 116.709 119.853 119.563 120.013 120.849 121.647 122.024 Gross domestic purchases............... 113.258 117.066 120.292 119.923 120.585 121.687 122.722 124.045 Final sales to domestic purchasers..... 113.299 117.101 120.329 119.943 120.604 121.794 122.858 124.157 Gross national product................. 113.031 116.672 119.813 119.542 119.990 120.737 121.495 121.898 ----------------------------------------------------------------------------------------------------------------------------------- r Revised 1. This index is a supplemental measure that is based on household expenditures for which there are observable price measures. It excludes most implicit prices (for example, the services furnished without payment by financial intermediaries) and the expenses of nonprofit institutions. Percentage changes for these series are included in the addenda to table 8 and in appendix table A. See "Explanatory Note" at the end of the tables. Table 7.--Real Gross Domestic Product: Percent Change from Preceding Year ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP).... 3.3 2.7 4.0 2.5 3.7 4.5 4.2 4.5 3.7 .8 1.6 2.5 3.6 2.9 2.8 2.0 Personal consumption expenditures...... 3.3 3.3 3.7 2.7 3.4 3.8 5.0 5.1 4.7 2.5 2.7 2.8 3.6 3.0 3.0 2.8 Durable goods........................ 5.9 7.8 8.4 4.4 7.8 8.6 11.3 11.7 7.3 4.3 7.1 5.8 6.3 4.6 4.5 4.8 Nondurable goods..................... 2.0 2.7 3.5 2.2 2.6 2.7 4.0 4.6 3.8 2.0 2.5 3.2 3.5 3.4 3.7 2.5 Services............................. 3.5 2.8 2.9 2.6 2.9 3.3 4.2 4.0 4.5 2.4 1.9 1.9 3.2 2.6 2.5 2.6 Gross private domestic investment...... 8.1 8.9 13.6 3.1 8.9 12.4 9.8 7.8 5.7 -7.9 -2.6 3.6 9.7 5.8 2.1 -5.4 Fixed investment..................... 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 6.8 1.9 -3.1 Nonresidential..................... 3.2 8.7 9.2 10.5 9.3 12.1 11.1 9.2 8.7 -4.2 -9.2 1.0 5.8 7.2 7.5 4.9 Structures....................... -6.0 -.7 1.8 6.4 5.6 7.3 5.1 -.4 6.8 -2.3 -17.1 -4.1 1.3 1.3 8.2 12.7 Equipment and software........... 7.3 12.5 11.9 12.0 10.6 13.8 13.3 12.7 9.4 -4.9 -6.2 2.8 7.4 9.3 7.2 1.7 Residential........................ 13.8 8.2 9.6 -3.2 8.0 1.9 7.6 6.0 .8 .4 4.8 8.4 10.0 6.3 -7.1 -17.9 Change in private inventories........ ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services...... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports.............................. 6.9 3.2 8.7 10.1 8.4 11.9 2.4 4.3 8.7 -5.4 -2.3 1.3 9.7 7.0 9.1 8.4 Goods.............................. 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 7.7 9.9 7.5 Services........................... 5.5 3.2 6.3 6.3 7.2 5.9 2.9 5.6 2.9 -3.7 1.9 .0 11.5 5.6 7.2 10.5 Imports.............................. 7.0 8.8 11.9 8.0 8.7 13.6 11.6 11.5 13.1 -2.7 3.4 4.1 11.3 5.9 6.0 2.2 Goods.............................. 9.3 10.1 13.3 9.0 9.3 14.4 11.7 12.4 13.5 -3.2 3.7 4.9 11.3 6.8 6.0 1.7 Services........................... -2.6 2.9 5.7 3.3 5.5 9.4 11.4 6.9 11.1 -.3 2.1 .0 11.5 1.4 6.0 4.4 Government consumption expenditures and gross investment.................. .5 -.9 .0 .5 1.0 1.9 1.9 3.9 2.1 3.4 4.4 2.5 1.4 .4 1.7 2.1 Federal.............................. -1.7 -4.2 -3.7 -2.7 -1.2 -1.0 -1.1 2.2 .9 3.9 7.0 6.8 4.2 1.2 2.3 1.6 National defense................... -5.0 -5.6 -4.9 -3.8 -1.4 -2.8 -2.1 1.9 -.5 3.9 7.4 8.7 5.8 1.5 1.6 2.5 Nondefense......................... 6.9 -.7 -1.2 -.4 -.7 2.6 .7 2.8 3.5 3.9 6.3 3.4 1.1 .6 3.6 -.2 State and local...................... 2.2 1.4 2.6 2.6 2.3 3.6 3.6 4.7 2.7 3.2 3.1 .2 -.2 -.1 1.3 2.3 Addenda: Final sales of domestic product...... 3.0 2.6 3.4 3.0 3.7 4.0 4.2 4.5 3.8 1.6 1.2 2.5 3.3 3.1 2.8 2.4 Gross domestic purchases............. 3.3 3.2 4.4 2.4 3.8 4.8 5.3 5.3 4.4 .9 2.2 2.8 4.1 3.0 2.6 1.4 Final sales to domestic purchasers... 3.1 3.2 3.8 2.8 3.8 4.3 5.3 5.4 4.5 1.8 1.8 2.8 3.8 3.1 2.6 1.8 Gross national product............... 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 3.0 2.6 2.2 Real disposable personal income...... 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 1.4 3.5 2.8 Price indexes: Gross domestic purchases........... 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 3.7 3.4 2.8 Gross domestic purchases excluding food and energy................... 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 3.1 3.1 2.4 GDP................................ 2.3 2.3 2.1 2.0 1.9 1.7 1.1 1.4 2.2 2.4 1.7 2.1 2.9 3.3 3.2 2.7 GDP excluding food and energy...... 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 3.2 3.2 2.5 Personal consumption expenditures.. 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 2.6 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- III 04 IV 04 I 05 II 05 III 05 IV 05 I 06 II 06 III 06 IV 06 I 07 II 07 III 07 IV 07 I 08r II 08r ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP).... 3.2 3.1 3.2 2.9 3.0 2.7 3.1 3.2 2.4 2.4 1.3 1.8 2.8 2.3 2.5 2.2 Personal consumption expenditures (PCE)................................. 3.2 3.7 3.0 3.3 3.3 2.6 3.2 3.0 2.7 3.2 3.1 2.9 2.9 2.2 1.5 1.4 Durable goods........................ 4.0 5.6 4.3 6.8 6.2 1.2 5.5 3.0 2.5 6.9 4.6 5.4 5.1 4.2 .8 -1.1 Nondurable goods..................... 2.8 3.5 3.0 3.6 3.6 3.6 4.1 3.8 3.6 3.2 3.0 2.7 2.4 1.7 .7 1.3 Services............................. 3.2 3.3 2.7 2.4 2.6 2.4 2.4 2.7 2.2 2.6 2.9 2.6 2.7 2.1 1.9 1.9 Gross private domestic investment...... 9.8 9.1 10.9 4.4 3.5 4.8 4.1 5.4 3.0 -3.9 -7.7 -6.2 -4.1 -3.3 -2.3 -6.8 Fixed investment..................... 6.8 7.2 8.7 7.3 6.4 5.1 5.8 3.3 .7 -1.8 -4.6 -3.3 -2.3 -1.9 -2.5 -3.9 Nonresidential..................... 5.6 7.5 9.2 8.1 6.6 4.9 7.9 7.9 7.7 6.5 3.5 4.4 5.3 6.4 6.2 4.2 Structures....................... 1.1 2.3 4.2 2.3 -1.0 -.5 1.4 6.4 12.7 12.8 11.7 11.4 12.9 14.5 13.9 12.7 Equipment and software........... 7.3 9.4 11.0 10.2 9.4 7.0 10.5 8.5 5.9 4.2 .3 1.6 2.0 2.8 2.7 .2 Residential........................ 8.8 6.7 7.7 6.1 6.0 5.4 2.5 -4.3 -10.8 -15.5 -18.5 -17.3 -17.0 -19.0 -21.3 -22.2 Change in private inventories........ ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services...... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports.............................. 9.9 7.4 6.9 7.5 6.8 7.0 9.0 8.2 9.0 10.1 6.1 7.0 11.7 8.9 10.1 11.2 Goods.............................. 10.0 7.0 6.9 8.7 6.8 8.3 11.0 9.0 10.2 9.5 5.6 5.7 10.0 8.7 9.4 11.8 Services........................... 9.8 8.3 6.9 4.8 6.6 4.0 4.7 6.2 6.2 11.5 7.3 10.0 15.6 9.3 11.7 9.9 Imports.............................. 12.4 11.5 9.1 5.5 4.5 4.8 6.6 6.5 7.1 3.8 3.2 2.2 2.2 1.1 -1.0 -2.0 Goods.............................. 12.6 11.9 10.2 6.3 5.2 5.8 6.8 6.7 7.4 3.1 2.9 1.7 1.4 .9 -1.6 -2.5 Services........................... 11.5 9.3 3.7 1.5 .8 -.1 5.6 5.1 5.3 8.0 4.8 4.8 6.5 1.8 2.2 .7 Government consumption expenditures and gross investment.................. 1.3 .7 .2 .1 .6 .6 1.6 1.7 1.3 2.1 1.4 2.0 2.6 2.4 2.6 2.6 Federal.............................. 4.4 2.4 1.2 .9 1.7 1.0 3.1 2.5 .6 2.9 -.4 1.6 2.9 2.3 4.8 4.8 National defense................... 7.2 2.5 1.3 1.8 2.1 .8 2.2 1.7 -1.5 4.1 .4 2.0 4.7 2.7 6.2 5.9 Nondefense......................... -.9 2.3 1.0 -.9 .8 1.4 5.1 4.1 4.9 .5 -2.1 .8 -.8 1.5 1.9 2.5 State and local...................... -.5 -.4 -.4 -.3 -.1 .3 .7 1.2 1.7 1.6 2.4 2.3 2.3 2.4 1.4 1.3 Addenda: Final sales of domestic product...... 2.7 2.8 2.8 3.4 3.5 2.7 3.4 2.8 2.0 2.8 1.8 2.3 3.1 2.5 2.5 2.6 Gross domestic purchases............. 3.8 3.9 3.6 2.9 2.8 2.6 3.1 3.2 2.4 1.9 1.1 1.3 1.7 1.4 1.1 .4 Final sales to domestic purchasers... 3.3 3.6 3.3 3.3 3.3 2.6 3.4 2.8 2.1 2.2 1.6 1.8 2.0 1.6 1.1 .9 Gross national product............... 3.4 2.9 3.2 3.1 3.1 2.8 2.9 3.1 2.1 2.5 1.2 1.6 3.1 2.9 3.0 2.5 Real disposable personal income...... 2.7 4.1 1.9 1.9 .9 .9 3.4 3.1 4.0 3.6 3.4 2.9 3.1 1.8 .6 3.5 Price indexes: Gross domestic purchases........... 3.3 3.7 3.6 3.3 3.9 4.0 3.8 3.9 3.3 2.5 2.7 2.6 2.4 3.3 3.3 3.5 Gross domestic purchases excluding food and energy................... 2.9 3.1 3.2 3.0 3.1 3.2 3.0 3.2 3.1 2.9 2.8 2.4 2.3 2.3 2.1 2.2 GDP................................ 3.0 3.2 3.3 2.9 3.4 3.5 3.4 3.5 3.2 2.8 2.9 2.8 2.5 2.6 2.3 2.0 GDP excluding food and energy...... 2.9 3.2 3.3 3.1 3.2 3.3 3.2 3.4 3.2 3.0 2.9 2.5 2.3 2.3 2.0 1.9 PCE................................ 2.7 3.1 2.8 2.5 3.2 3.3 3.1 3.3 2.9 1.9 2.3 2.4 2.2 3.5 3.5 3.7 PCE excluding food and energy...... 2.1 2.2 2.3 2.1 2.1 2.2 2.1 2.3 2.5 2.3 2.3 2.1 2.0 2.2 2.2 2.2 Market-based PCE\1\................ 2.3 2.8 2.5 2.2 3.1 3.1 2.9 3.1 2.7 1.6 2.1 2.2 2.0 3.3 3.4 3.6 Market-based PCE excluding food and energy\1\..................... 1.4 1.6 1.7 1.7 1.7 1.7 1.6 1.9 2.1 2.0 2.1 1.8 1.6 1.8 1.7 1.9 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. 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 --------------------------------------------------- 2005 2006 2007 II 07 III 07 IV 07 I 08r II 08r ----------------------------------------------------------------------------------------------------------------------------------- Gross domestic product..................... 12,421.9 13,178.4 13,807.5 13,737.5 13,950.6 14,031.2 14,150.8 14,312.5 Plus: Income receipts from the rest of the world..................................... 573.5 725.4 861.7 852.8 898.5 907.4 843.2 825.4 Less: Income payments to the rest of the world..................................... 480.5 647.1 759.3 793.2 786.3 742.0 705.1 710.2 Equals: Gross national product............. 12,514.9 13,256.6 13,910.0 13,797.2 14,062.8 14,196.6 14,289.0 14,427.7 Less: Consumption of fixed capital......... 1,612.0 1,623.9 1,720.5 1,707.0 1,731.9 1,758.6 1,778.0 1,804.4 Less: Statistical discrepancy.............. -71.2 -163.0 -81.4 -143.4 -7.8 13.9 63.4 111.8 Equals: National income.................... 10,974.0 11,795.7 12,270.9 12,233.6 12,338.6 12,424.1 12,447.6 12,511.5 Compensation of employees................ 7,030.8 7,433.8 7,812.3 7,760.1 7,839.3 7,941.0 8,009.7 8,071.0 Wage and salary accruals............... 5,676.7 6,028.5 6,355.7 6,310.7 6,377.7 6,465.5 6,518.0 6,568.0 Supplements to wages and salaries...... 1,354.1 1,405.3 1,456.6 1,449.4 1,461.6 1,475.5 1,491.7 1,503.0 Proprietors' income with inventory valuation and capital consumption adjustments............................. 959.8 1,014.7 1,056.2 1,050.2 1,063.8 1,073.8 1,071.7 1,077.3 Rental income of persons with capital consumption adjustment.................. 40.9 44.3 40.0 44.6 41.8 38.6 39.1 53.6 Corporate profits with inventory valuation and capital consumption adjustments............................. 1,447.9 1,668.5 1,642.4 1,672.5 1,668.3 1,611.1 1,593.5 1,555.7 Net interest and miscellaneous payments.. 569.1 631.2 664.4 660.8 663.0 688.1 662.3 677.2 Taxes on production and imports less subsidies............................... 868.9 926.4 963.2 956.4 965.7 975.3 975.1 981.2 Business current transfer payments....... 70.0 85.4 100.2 97.4 102.2 103.1 103.2 103.0 Current surplus of government enterprises............................. -13.4 -8.6 -7.9 -8.5 -5.5 -6.7 -7.1 -7.7 Addendum: Gross domestic income.................... 12,493.0 13,341.4 13,889.0 13,881.0 13,958.4 14,017.4 14,087.4 14,200.7 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. Table 10.--Personal Income and Its Disposition [Billions of dollars] ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates --------------------------------------------------- 2005 2006 2007 II 07 III 07 IV 07 I 08r II 08r ----------------------------------------------------------------------------------------------------------------------------------- Personal income\1\......................... 10,269.8 10,993.9 11,663.2 11,577.5 11,730.4 11,872.1 11,960.5 12,174.2 Compensation of employees, received...... 7,025.8 7,432.6 7,818.6 7,760.1 7,839.3 7,941.0 8,009.7 8,071.0 Wage and salary disbursements.......... 5,671.7 6,027.2 6,362.0 6,310.7 6,377.7 6,465.5 6,518.0 6,568.0 Supplements to wages and salaries...... 1,354.1 1,405.3 1,456.6 1,449.4 1,461.6 1,475.5 1,491.7 1,503.0 Proprietors' income with inventory valuation and capital consumption adjustments............................. 959.8 1,014.7 1,056.2 1,050.2 1,063.8 1,073.8 1,071.7 1,077.3 Farm................................... 34.1 16.2 44.0 42.3 47.4 47.1 41.6 38.7 Nonfarm................................ 925.7 998.6 1,012.2 1,007.9 1,016.4 1,026.7 1,030.1 1,038.6 Rental income of persons with capital consumption adjustment.................. 40.9 44.3 40.0 44.6 41.8 38.6 39.1 53.6 Personal income receipts on assets....... 1,596.9 1,824.8 2,000.1 1,982.5 2,030.9 2,056.2 2,054.1 2,043.0 Personal interest income............... 1,022.0 1,125.4 1,214.3 1,206.1 1,236.2 1,242.7 1,224.6 1,199.4 Personal dividend income............... 574.9 699.4 785.8 776.5 794.7 813.5 829.5 843.6 Personal current transfer receipts....... 1,520.7 1,603.0 1,713.3 1,699.2 1,720.6 1,737.8 1,778.1 1,926.2 Less: Contributions for government social insurance........................ 874.3 925.5 965.1 959.1 966.0 975.3 992.2 996.9 Less: Personal current taxes............... 1,207.8 1,353.2 1,492.8 1,489.4 1,501.6 1,520.5 1,535.0 1,352.0 Equals: Disposable personal income......... 9,062.0 9,640.7 10,170.5 10,088.0 10,228.8 10,351.5 10,425.5 10,822.2 Less: Personal outlays..................... 9,029.5 9,570.0 10,113.1 10,056.9 10,182.0 10,309.2 10,404.9 10,542.3 Equals: Personal saving.................... 32.5 70.7 57.4 31.1 46.8 42.4 20.6 279.9 Personal saving as a percentage of disposable personal income.............. .4 .7 .6 .3 .5 .4 .2 2.6 Addendum: Disposable personal income, billions of chained (2000) dollars\2\............... 8,121.4 8,407.0 8,644.0 8,604.5 8,671.1 8,683.1 8,667.9 8,905.4 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. 1. Personal income is also equal to national income less corporate profits with inventory valuation and capital consumption adjustments, taxes on production and imports less subsidies, contributions for government social insurance, net interest and miscellaneous payments, business current transfer payments, current surplus of government enterprises, and wage accruals less disbursements, plus personal income receipts on assets, and personal current transfer receipts. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. Table 11.--Corporate Profits: Level and Percent Change ------------------------------------------------------------------------------------------------------------------------------------------------------------- Billions of dollars Percent change from preceding period ---------------------------------------------------------------- ------------------------------------------------------ Seasonally adjusted Quarterly Quarter one at annual rates rates year ago --------------------------------------- ------------------------------- ------- 2005 2006 2007 II 07 III 07 IV 07 I 08 II 08 2006 2007 III 07 IV 07 I 08 II 08 II 08 ------------------------------------------------------------------------------------------------------------------------------------------------------------- Corporate profits with inventory valuation and capital consumption adjustments......................... 1,447.9 1,668.5 1,642.4 1,672.5 1,668.3 1,611.1 1,593.5 1,555.7 15.2 -1.6 -.3 -3.4 -1.1 -2.4 -7.0 Less: Taxes on corporate income...... 413.7 468.9 450.4 468.5 451.1 433.5 402.9 410.3 13.3 -4.0 -3.7 -3.9 -7.0 1.8 -12.4 Equals: Profits after tax with inventory valuation and capital consumption adjustments............. 1,034.2 1,199.6 1,192.0 1,204.0 1,217.3 1,177.6 1,190.6 1,145.4 16.0 -.6 1.1 -3.3 1.1 -3.8 -4.9 Net dividends...................... 577.4 702.1 788.7 779.2 797.6 816.4 832.5 846.5 21.6 12.3 2.4 2.4 2.0 1.7 8.6 Undistributed profits with inventory valuation and capital consumption adjustments........... 456.9 497.5 403.4 424.8 419.7 361.2 358.1 298.9 8.9 -18.9 -1.2 -13.9 -.9 -16.5 -29.6 Cash flow: Net cash flow with inventory valuation and capital consumption adjustments....................... 1,315.8 1,390.3 1,348.7 1,363.2 1,371.4 1,326.9 1,337.0 1,295.7 5.7 -3.0 .6 -3.2 .8 -3.1 -5.0 Undistributed profits with inventory valuation and capital consumption adjustments......... 456.9 497.5 403.4 424.8 419.7 361.2 358.1 298.9 8.9 -18.9 -1.2 -13.9 -.9 -16.5 -29.6 Consumption of fixed capital..... 858.9 892.8 945.3 938.4 951.8 965.7 978.8 996.8 4.0 5.9 1.4 1.5 1.4 1.8 6.2 Less: Inventory valuation adjustment........................ -37.8 -39.5 -51.2 -55.3 -31.0 -74.1 -109.4 -152.6 ..... ..... ..... ..... ..... ..... ..... Equals: Net cash flow.............. 1,353.6 1,429.8 1,399.9 1,418.5 1,402.5 1,401.0 1,446.3 1,448.3 5.6 -2.1 -1.1 -.1 3.2 .1 2.1 Addenda: Profits before tax (without inventory valuation and capital consumption adjustments).......... 1,620.6 1,873.7 1,886.3 1,914.8 1,897.1 1,894.3 1,750.9 1,771.3 15.6 .7 -.9 -.1 -7.6 1.2 -7.5 Profits after tax (without inventory valuation and capital consumption adjustments).......... 1,206.9 1,404.8 1,435.9 1,446.3 1,446.1 1,460.9 1,348.0 1,361.0 16.4 2.2 .0 1.0 -7.7 1.0 -5.9 Inventory valuation adjustment..... -37.8 -39.5 -51.2 -55.3 -31.0 -74.1 -109.4 -152.6 ..... ..... ..... ..... ..... ..... ..... Capital consumption adjustment..... -134.8 -165.7 -192.7 -187.0 -197.8 -209.2 -48.0 -63.0 ..... ..... ..... ..... ..... ..... ..... ------------------------------------------------------------------------------------------------------------------------------------------------------------- Table 12.--Corporate Profits by Industry: Level and Change From Preceding Period [Billions of dollars] ------------------------------------------------------------------------------------------------------------------------------------------------------------- Level Change from preceding period ---------------------------------------------------------------- ---------------------------------------------- Seasonally adjusted at annual rates --------------------------------------- ---------------------------------------------- 2005 2006 2007 II 07 III 07 IV 07 I 08 II 08 2006 2007 III 07 IV 07 I 08 II 08 ------------------------------------------------------------------------------------------------------------------------------------------------------------- Corporate profits with inventory valuation and capital consumption adjustments............................. 1,447.9 1,668.5 1,642.4 1,672.5 1,668.3 1,611.1 1,593.5 1,555.7 220.6 -26.1 -4.2 -57.2 -17.6 -37.8 Domestic industries.......................... 1,208.5 1,401.0 1,297.8 1,369.7 1,311.9 1,189.7 1,195.1 1,172.8 192.5 -103.2 -57.8 -122.2 5.4 -22.3 Financial.................................. 407.1 462.1 429.7 473.1 439.3 370.3 407.6 432.3 55.0 -32.4 -33.8 -69.0 37.3 24.7 Nonfinancial............................... 801.4 939.0 868.1 896.6 872.6 819.5 787.4 740.5 137.6 -70.9 -24.0 -53.1 -32.1 -46.9 Rest of the world............................ 239.4 267.5 344.7 302.9 356.4 421.3 398.5 382.9 28.1 77.2 53.5 64.9 -22.8 -15.6 Receipts from the rest of the world........ 384.1 438.9 509.2 494.7 528.4 553.1 556.8 576.5 54.8 70.3 33.7 24.7 3.7 19.7 Less: Payments to the rest of the world.... 144.6 171.4 164.5 191.8 172.0 131.8 158.3 193.6 26.8 -6.9 -19.8 -40.2 26.5 35.3 Corporate profits with inventory valuation adjustment.................... 1,582.8 1,834.2 1,835.1 1,859.5 1,866.1 1,820.2 1,641.5 1,618.7 251.4 .9 6.6 -45.9 -178.7 -22.8 Domestic industries.......................... 1,343.3 1,566.7 1,490.5 1,556.7 1,509.7 1,398.9 1,243.1 1,235.8 223.4 -76.2 -47.0 -110.8 -155.8 -7.3 Financial.................................. 425.3 478.8 449.9 492.7 460.3 392.4 412.8 438.9 53.5 -28.9 -32.4 -67.9 20.4 26.1 Federal Reserve banks.................... 26.6 33.8 37.7 38.5 37.5 36.5 35.8 31.0 7.2 3.9 -1.0 -1.0 -.7 -4.8 Other financial.......................... 398.7 445.0 412.2 454.2 422.8 355.9 377.1 407.9 46.3 -32.8 -31.4 -66.9 21.2 30.8 Nonfinancial............................... 918.1 1,087.9 1,040.6 1,064.0 1,049.3 1,006.5 830.2 796.8 169.8 -47.3 -14.7 -42.8 -176.3 -33.4 Utilities................................ 28.9 55.6 58.5 54.7 58.7 63.2 46.2 ..... 26.7 2.9 4.0 4.5 -17.0 ..... Manufacturing............................ 243.8 304.3 316.6 350.8 306.6 292.1 240.5 ..... 60.5 12.3 -44.2 -14.5 -51.6 ..... Durable goods.......................... 93.3 115.9 127.4 123.1 130.9 128.3 85.5 ..... 22.6 11.5 7.8 -2.6 -42.8 ..... Fabricated metal products............ 17.8 19.2 21.7 20.0 22.5 22.8 18.9 ..... 1.4 2.5 2.5 .3 -3.9 ..... Machinery............................ 14.9 20.0 22.3 22.4 22.2 22.0 19.2 ..... 5.1 2.3 -.2 -.2 -2.8 ..... Computer and electronic products..... 7.9 14.1 13.5 9.0 13.2 15.4 14.4 ..... 6.2 -.6 4.2 2.2 -1.0 ..... Electrical equipment, appliances, and components...................... -1.6 8.4 10.9 9.6 10.7 11.5 6.9 ..... 10.0 2.5 1.1 .8 -4.6 ..... Motor vehicles, bodies and trailers, and parts........................... .1 -8.4 -5.9 -2.7 -4.4 -7.7 -19.9 ..... -8.5 2.5 -1.7 -3.3 -12.2 ..... Other durable goods.................. 54.2 62.6 64.9 64.8 66.8 64.3 46.1 ..... 8.4 2.3 2.0 -2.5 -18.2 ..... Nondurable goods....................... 150.5 188.4 189.3 227.8 175.7 163.8 155.0 ..... 37.9 .9 -52.1 -11.9 -8.8 ..... Food and beverage and tobacco products............................ 26.2 33.8 38.5 42.7 39.2 38.7 34.8 ..... 7.6 4.7 -3.5 -.5 -3.9 ..... Petroleum and coal products.......... 78.9 77.5 66.9 106.7 55.6 33.6 48.8 ..... -1.4 -10.6 -51.1 -22.0 15.2 ..... Chemical products.................... 25.8 53.8 66.4 64.6 65.1 73.8 60.2 ..... 28.0 12.6 .5 8.7 -13.6 ..... Other nondurable goods............... 19.6 23.4 17.5 13.8 15.9 17.8 11.1 ..... 3.8 -5.9 2.1 1.9 -6.7 ..... Wholesale trade.......................... 97.3 107.5 102.6 112.7 109.1 80.2 49.2 ..... 10.2 -4.9 -3.6 -28.9 -31.0 ..... Retail trade............................. 120.4 132.3 132.3 145.9 126.0 124.5 112.0 ..... 11.9 .0 -19.9 -1.5 -12.5 ..... Transportation and warehousing........... 29.1 42.5 42.7 45.4 47.0 37.7 24.4 ..... 13.4 .2 1.6 -9.3 -13.3 ..... Information.............................. 79.7 91.1 103.0 85.0 108.4 117.9 106.0 ..... 11.4 11.9 23.4 9.5 -11.9 ..... Other nonfinancial....................... 318.9 354.7 284.9 269.4 293.5 290.9 252.0 ..... 35.8 -69.8 24.1 -2.6 -38.9 ..... Rest of the world............................ 239.4 267.5 344.7 302.9 356.4 421.3 398.5 382.9 28.1 77.2 53.5 64.9 -22.8 -15.6 ------------------------------------------------------------------------------------------------------------------------------------------------------------- Note.--Estimates in this table are based on the 1997 North American Industry Classification System (NAICS). Table 13.--Gross Value Added of Nonfinancial Domestic Corporate Business ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates --------------------------------------------------- 2005 2006 2007 II 07 III 07 IV 07 I 08r II 08 ----------------------------------------------------------------------------------------------------------------------------------- Billions of dollars ---------------------------------------------------------------------------------------- Gross value added of nonfinancial corporate business.................... 6,396.1 6,863.4 7,075.1 7,066.7 7,098.6 7,135.5 7,119.3 7,121.2 Consumption of fixed capital............... 743.9 775.2 822.3 816.0 828.1 840.7 852.6 868.7 Net value added............................ 5,652.2 6,088.3 6,252.8 6,250.7 6,270.6 6,294.8 6,266.7 6,252.5 Compensation of employees................ 4,075.6 4,316.8 4,525.3 4,497.4 4,537.2 4,602.7 4,623.0 4,645.5 Wage and salary accruals............... 3,337.9 3,548.2 3,734.2 3,710.0 3,744.2 3,802.8 3,814.8 3,833.1 Supplements to wages and salaries...... 737.6 768.6 791.1 787.3 793.0 799.9 808.2 812.4 Taxes on production and imports less subsidies............................... 563.2 591.1 611.9 609.9 614.2 619.5 617.9 621.2 Net operating surplus.................... 1,013.5 1,180.3 1,115.5 1,143.5 1,119.1 1,072.6 1,025.8 985.8 Net interest and miscellaneous payments.............................. 153.6 169.6 179.4 178.9 178.8 185.4 180.5 187.0 Business current transfer payments..... 58.5 71.8 68.1 68.0 67.7 67.7 57.9 58.2 Corporate profits with inventory valuation and capital consumption adjustments........................... 801.4 939.0 868.1 896.6 872.6 819.5 787.4 740.5 Taxes on corporate income............ 274.5 309.3 321.1 330.9 318.9 314.7 279.8 284.2 Profits after tax with inventory valuation and capital consumption adjustments......................... 526.9 629.7 547.0 565.7 553.7 504.7 507.6 456.3 Net dividends...................... 184.2 474.4 503.4 496.1 492.7 533.0 494.0 525.9 Undistributed profits with inventory valuation and capital consumption adjustments........... 342.7 155.3 43.5 69.5 61.0 -28.3 13.6 -69.6 Addenda: Profits before tax (without inventory valuation and capital consumption adjustments)............................ 955.9 1,127.4 1,091.7 1,119.2 1,080.4 1,080.6 939.6 949.5 Profits after tax (without inventory valuation and capital consumption adjustments)............................ 681.3 818.1 770.7 788.3 761.5 765.8 659.8 665.2 Inventory valuation adjustment........... -37.8 -39.5 -51.2 -55.3 -31.0 -74.1 -109.4 -152.6 Capital consumption adjustment........... -116.7 -149.0 -172.5 -167.4 -176.8 -187.0 -42.8 -56.3 ---------------------------------------------------------------------------------------- Billions of chained (2000) dollars ---------------------------------------------------------------------------------------- Gross value added of nonfinancial corporate business\1\................. 5,907.8 6,167.8 6,264.5 6,253.1 6,293.3 6,323.5 6,302.0 6,361.4 Consumption of fixed capital\2\............ 682.6 686.7 716.9 711.6 721.0 731.6 744.8 757.5 Net value added\3\......................... 5,225.2 5,481.1 5,547.6 5,541.5 5,572.3 5,591.9 5,557.2 5,603.9 ---------------------------------------------------------------------------------------- Dollars; quarters seasonally adjusted ---------------------------------------------------------------------------------------- Price, costs, and profits per unit of real gross value added of nonfinancial corporate business: Price per unit of real gross value added of nonfinancial corporate business\4\... 1.083 1.113 1.129 1.130 1.128 1.128 1.130 1.119 Compensation of employees (unit labor cost)................................... .690 .700 .722 .719 .721 .728 .734 .730 Unit nonlabor cost....................... .257 .260 .269 .267 .268 .271 .271 .273 Consumption of fixed capital........... .126 .126 .131 .130 .132 .133 .135 .137 Taxes on production and imports less subsidies plus business current transfer payments..................... .105 .107 .109 .108 .108 .109 .107 .107 Net interest and miscellaneous payments .026 .027 .029 .029 .028 .029 .029 .029 Corporate profits with inventory valuation and capital consumption adjustments (unit profits from current production)........ .136 .152 .139 .143 .139 .130 .125 .116 Taxes on corporate income.............. .046 .050 .051 .053 .051 .050 .044 .045 Profits after tax with inventory valuation and capital consumption adjustments........................... .089 .102 .087 .090 .088 .080 .081 .072 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the incorporation of revised wage and salary estimates for the first quarter of 2008. 1. The current-dollar gross value added is deflated using the gross value added chain-type price index for nonfinancial industries from the GDP-by-industry accounts. For periods when this price index is not available, the chain-type price index for GDP goods and structures is used. 2. Chained-dollar consumption of fixed capital of nonfinancial corporate business is calculated as the product of the chain-type quantity index and the 2000 current-dollar value of the corresponding series, divided by 100. 3. Chained-dollar net value added of nonfinancial corporate business is the difference between the gross value added and the consumption of fixed capital. 4. The deflator for gross value added of nonfinancial corporate business divided by 100. Note.--Estimates in this table are based on the 1997 North American Industry Classification System (NAICS). Appendix Table A.--Real Gross Domestic Product and Related Aggregates and Price Indexes: Percent Change From Preceding Period [Quarters seasonally adjusted at annual rates] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2005 2006 2007 III 04 IV 04 I 05 II 05 III 05 IV 05 I 06 II 06 III 06 IV 06 I 07 II 07 III 07 IV 07 I 08 II 08r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP) and related aggregates: GDP............................... 2.9 2.8 2.0 3.6 2.5 3.0 2.6 3.8 1.3 4.8 2.7 .8 1.5 .1 4.8 4.8 -.2 .9 3.3 Goods............................. 4.3 5.4 3.1 6.6 3.7 3.6 4.7 5.3 2.0 11.1 5.9 1.5 1.3 -2.5 10.3 9.0 .0 .9 6.2 Services.......................... 2.2 2.3 2.8 2.4 2.4 2.1 1.0 3.9 .9 2.6 2.3 2.3 3.8 2.1 2.7 4.0 1.3 2.7 2.3 Structures........................ 3.2 -2.2 -5.0 1.3 -.3 6.0 5.1 -.6 1.3 -.8 -3.8 -8.8 -9.8 -3.9 .8 -2.9 -9.3 -10.1 -.1 Motor vehicle output.............. 3.8 -.9 -1.1 29.0 -9.6 4.6 7.1 24.6 -31.0 20.2 -10.1 13.7 -19.0 3.8 4.6 17.3 -25.7 -14.2 -33.0 GDP excuding motor vehicle output........................... 2.9 2.9 2.1 2.8 3.0 2.9 2.5 3.2 2.6 4.3 3.1 .4 2.2 -.1 4.8 4.4 .7 1.3 4.4 Final sales of computers\1\....... 23.4 25.0 21.3 19.8 50.1 8.5 38.5 11.5 37.2 27.8 25.2 7.0 34.2 -5.0 37.2 52.6 23.7 8.2 24.6 GDP excluding final sales of computers........................ 2.8 2.6 1.9 3.5 2.3 2.9 2.4 3.8 1.1 4.7 2.5 .8 1.3 .1 4.6 4.5 -.3 .8 3.2 Farm gross value added\2\......... 9.1 -6.9 9.7 18.9 40.8 -1.9 27.7 3.1 -26.8 -22.3 3.1 6.9 30.4 12.5 -6.1 8.6 8.2 -15.5 -8.9 Nonfarm business gross value added\3\......................... 3.4 3.2 2.0 3.8 2.6 3.7 2.9 4.8 1.3 6.0 2.9 .3 1.4 -.9 5.8 5.5 -.7 .9 3.4 Price indexes: GDP............................... 3.3 3.2 2.7 2.3 3.2 4.0 2.1 4.1 3.7 3.5 2.7 2.8 2.2 4.1 2.0 1.5 2.8 2.6 1.2 GDP excluding food and energy..... 3.2 3.2 2.5 2.8 3.1 3.9 2.7 3.2 3.5 3.6 3.2 2.6 2.6 3.2 1.7 1.8 2.4 2.0 1.5 GDP excluding final sales of computers........................ 3.4 3.4 2.8 2.4 3.4 4.2 2.3 4.2 3.9 3.7 2.9 2.9 2.3 4.2 2.1 1.7 3.0 2.7 1.3 Gross domestic purchases.......... 3.7 3.4 2.8 2.8 3.6 3.7 3.1 5.2 3.9 2.9 3.6 2.9 .6 3.6 3.3 2.2 4.0 3.5 4.2 Gross domestic purchases excluding food and energy.................. 3.1 3.1 2.4 2.6 2.8 3.9 2.7 2.9 3.2 3.4 3.2 2.5 2.5 2.9 1.8 1.9 2.4 2.2 2.2 Gross domestic purchases excluding final sales of computers to domestic purchasers.............. 3.9 3.6 2.9 2.9 3.9 3.9 3.3 5.4 4.1 3.0 3.8 3.1 .7 3.8 3.5 2.4 4.2 3.7 4.4 Personal consumption expenditures (PCE)............................ 2.9 2.8 2.6 2.0 3.0 2.5 2.5 4.7 3.3 1.8 3.3 3.1 -.5 3.4 3.6 2.5 4.3 3.6 4.2 Personal consumption expenditures excluding food and energy........ 2.1 2.3 2.2 1.7 2.1 2.5 2.1 1.6 2.4 2.1 3.0 2.3 1.8 2.4 1.8 2.1 2.5 2.3 2.1 Market-based PCE\4\............... 2.7 2.6 2.4 1.5 2.9 2.2 2.2 4.9 3.2 1.4 3.1 3.1 -1.1 3.5 3.5 2.0 4.4 3.7 4.4 Market-based PCE excluding food and energy\4\.................... 1.7 1.9 1.8 1.1 1.8 2.2 1.6 1.2 2.0 1.8 2.6 2.1 1.5 2.3 1.2 1.4 2.2 2.1 1.8 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised 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 2006-07 annual percent change in real GDP uses prices for 2006 and 2007 as weights, and the 2006-07 annual percent change in GDP prices uses quantities for 2006 and 2007 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, 8, and Appendix Table A. 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.