News Release

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, FRIDAY, JANUARY 28, 2005
BEA 05-03

Gross Domestic Product: Fourth Quarter 2004 "advance" estimates

The tables from this news release are available in XLS format and the entire release is available in PDF format.
Also available: a brief summary of highlights.

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

Effects of the Third-Quarter Hurricanes on Income Measures

 


Virginia H. Mannering:  (202)       606-5304                                       BEA 05-03
Recorded message:       (202)       606-5306

    
                        GROSS DOMESTIC PRODUCT:  FOURTH QUARTER 2004 (ADVANCE)


    Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 3.1 percent in the fourth quarter of 2004,
according to advance estimates released by the Bureau of Economic Analysis.  In the third quarter, real
GDP increased 4.0 percent.
 
    The Bureau emphasized that the fourth-quarter "advance" estimates are based on source data that
are incomplete or subject to further revision by the source agency (see the box on page 3).  The fourth-
quarter "preliminary" estimates, based on more comprehensive data, will be released on February 25,
2005.

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

    Final sales of computers contributed 0.48 percentage point to the fourth-quarter change in real
GDP after contributing 0.18 percentage point to the third-quarter change.  Motor vehicle output
contributed 0.87 percentage point to the fourth-quarter change in real GDP after contributing 0.34
percentage point to the third-quarter change.  

    The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 2.7 percent in the fourth quarter, compared with an increase of 1.9 percent in the third. 
Excluding food and energy prices, the price index for gross domestic purchases increased 1.9 percent in
the fourth quarter, compared with an increase of 1.7 percent in the third.   



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

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


    Real personal consumption expenditures increased 4.6 percent in the fourth quarter, compared
with an increase of 5.1 percent in the third.  Durable goods purchases increased 6.7 percent, compared
with an increase of 17.2 percent.  Nondurable goods increased 5.8 percent, compared with an increase of
4.7 percent.  Services expenditures increased 3.7 percent, compared with an increase of 3.0 percent.

    Real nonresidential fixed investment increased 10.3 percent in the fourth quarter, compared with
an increase of 13.0 percent in the third.  Nonresidential structures decreased 4.1 percent, compared with
a decrease of 1.1 percent.  Equipment and software increased 14.9 percent, compared with an increase of
17.5 percent.  Real residential fixed investment increased 0.3 percent, compared with an increase of 1.6
percent.  

    Real exports of goods and services decreased 3.9 percent in the fourth quarter, in contrast to an
increase of 6.0 percent in the third.  Real imports of goods and services increased 9.1 percent, compared
with an increase of 4.6 percent.

    Real federal government consumption expenditures and gross investment increased 1.6 percent in
the fourth quarter, compared with an increase of 4.8 percent in the third.  National defense was
unchanged, compared with an increase of 10.1 percent.  Nondefense increased 5.1 percent, in contrast to
a decrease of 5.3 percent.  Real state and local government consumption expenditures and gross
investment increased 0.6 percent, in contrast to a decrease of 1.7 percent.

    The real change in private inventories added 0.42 percentage point to the fourth-quarter change in
real GDP after subtracting 0.97 percentage point from the third-quarter change.  Private businesses
increased inventories $45.8 billion in the fourth quarter, following increases of $34.5 billion in the third
quarter and $61.1 billion in the second.

    Real final sales of domestic product -- GDP less change in private inventories -- increased 2.7
percent in the fourth quarter, compared with an increase of 5.0 percent in the third.


Gross domestic purchases

    Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 4.7 percent in the fourth quarter, compared with an increase of 3.9 percent in the
third. 


Disposition of personal income

    Current-dollar personal income increased $250.3 billion (10.8 percent) in the fourth quarter,
compared with an increase of $81.6 billion (3.4 percent) in the third.  Fourth-quarter personal income
was boosted $99.4 billion (annual rate) by a special dividend payment made by the Microsoft
Corporation.  For further information, see the technical note and the FAQs on the Microsoft special
dividend on BEA's Web site: <www.bea.gov>.

    Personal current taxes increased $20.8 billion in the fourth quarter, compared with an increase of
$13.1 billion in the third.

    Disposable personal income increased $229.3 billion in the fourth quarter, compared with an
increase of $68.6 billion in the third.  Real disposable personal income increased 8.4 percent, compared
with an increase of 2.0 percent.

    Personal outlays increased $154.7 billion (7.4 percent) in the fourth quarter, compared with an
increase of $139.4 billion (6.8 percent) in the third.  Personal saving -- disposable personal income less
personal outlays -- was $117.2 billion in the fourth quarter, compared with $42.6 billion in the third. 
The personal saving rate -- saving as a percentage of disposable personal income -- increased from 0.5
percent in the third quarter to 1.3 percent in the fourth.


Current-dollar GDP

    Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
5.3 percent, or $152.1 billion, in the fourth quarter to a level of $11,967.0 billion.  In the third quarter,
current-dollar GDP increased 5.5 percent, or $157.4 billion.


2004 GDP

    Real GDP increased 4.4 percent in 2004 (that is, from the 2003 annual level to the 2004 annual
level), compared with an increase of 3.0 percent in 2003.

    The major contributors to the increase in real GDP in 2004 were personal consumption
expenditures (PCE), equipment and software, exports, residential fixed investment, and federal
government spending.  Imports, which are a subtraction in the calculation of GDP, increased in 2004.
    
    The acceleration in real GDP in 2004 primarily reflected an acceleration in exports, an upturn in
private inventory investment, and accelerations in equipment and software and in PCE that were partly
offset by an acceleration in imports.

    The price index for gross domestic purchases increased 2.4 percent in 2004, compared with an
increase of 2.0 percent in 2003.

    Current-dollar GDP increased 6.6 percent, or $724.0 billion, in 2004.  Current-dollar GDP
increased 4.9 percent, or $517.0 billion, in 2003.

    During 2004 (that is, measured from the fourth quarter of 2003 to the fourth quarter of 2004), real
GDP increased 3.7 percent.  Real GDP increased 4.4 percent during 2003.  The price index for gross
domestic purchases increased 2.9 percent during 2004, compared with an increase of 1.8 percent during
2003.


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



    BEA's major national, international, regional, and industry estimates; the Survey of Current
Business; and BEA news releases are available without charge on BEA's Web site:

                             <www.bea.gov>

You can also subscribe to e-mail notifications of BEA's various news releases and announcements at 
<www.bea.gov/newsreleases/rels.htm>.
   

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

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

    Most of BEA's estimates and analyses are published in the Survey of Current Business, BEA's
monthly journal.  Subscriptions and single copies of the printed Survey are for sale by the
Superintendent of Documents, U.S. Government Printing Office.  Internet:  <bookstore.gpo.gov>;
phone: 202-512-1800; fax: 202-512-2250; mail: Stop SSOP, Washington, DC 20402-0001.
                                   


                                   *          *          *



                      Next release -- February 25, 2005, at 8:30 A.M. EST for:
                      Gross Domestic Product:  Fourth Quarter 2004 (Preliminary)
                                                                                               
    



                    Comparisons of Revisions to GDP

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

    Annual revisions are usually carried out each summer and cover the quarters of the most recent calendar
year and of the 2 preceding years.  Comprehensive (or benchmark) revisions are carried out at about 5-year
intervals and incorporate definitional and classificational changes that update the accounts to portray more
accurately the evolving U.S. economy and statistical changes that update the accounts to reflect the introduction of
new and improved methodologies and the incorporation of newly available and revised source data.

    The table below shows comparisons of the revisions between quarterly percent changes of GDP for the
different vintages of the estimates.  These comparisons can be used to assess the likely size of future revisions.  For
example, two-thirds of the revisions between the quarterly change in the advance estimate of real GDP and that in
the final estimate were within a range of -0.6 to +0.9 percentage point.
Thus, based on past history, the fourth-quarter change in real GDP now
estimated at 3.1 percent at an annual rate, is not likely to be revised below
2.5 percent or above 4.0 percent in the next two releases.



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


   Vintages                    Average without                     Range
   compared                    regard to sign           Two-thirds      Nine-tenths
                                                        of revisions    of revisions

                         Current-dollar GDP


Advance to preliminary.....      0.6                  -0.5 to 0.8       -0.9 to 1.4
Advance to final...........       .7                  - .6 to 1.0       -1.0 to 1.6
Preliminary to final.......       .3                  - .3 to  .4       - .6 to  .7
Advance to latest..........      1.3                  -1.0 to 1.8       -1.9 to 3.4
Preliminary to latest......      1.2                  - .9 to 1.7       -1.9 to 2.6
Final to latest............      1.3                  -1.0 to 1.9       -2.2 to 2.6

                                                             Real GDP

Advance to preliminary.....      0.5                  -0.5 to 0.7       -0.9 to 1.2
Advance to final...........       .6                  - .6 to  .9       -1.0 to 1.3
Preliminary to final.......       .3                  - .3 to  .4       - .5 to  .6
Advance to latest..........      1.5                  -1.1 to 2.1       -2.5 to 3.3
Preliminary to latest......      1.4                  -1.1 to 1.9       -2.0 to 2.9
Final to latest...........       1.5                  -1.2 to 2.1       -2.6 to 3.1

NOTE.--These comparisons are based on the period from 1978 through 2003 for the first three comparisons in each group and on the period from
1978 through 2001 for the last three comparisons in each group.


                                    Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2002   2003   2004   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    1.9    3.0    4.4    -.5    1.2   -1.4    1.6    3.4    2.4    2.6     .7    1.9    4.1    7.4    4.2    4.5    3.3    4.0    3.1

Personal consumption expenditures...    3.1    3.3    3.8    1.7    1.0    1.8    7.0    1.8    2.8    2.9    2.5    2.7    3.9    5.0    3.6    4.1    1.6    5.1    4.6
  Durable goods.....................    6.5    7.4    6.9    6.7    -.3    3.1   37.4   -8.5    4.4   14.0   -2.4    -.1   20.6   16.5    3.9    2.2    -.3   17.2    6.7
  Nondurable goods..................    2.6    3.7    4.5     .5    -.1    2.4    4.9    3.8     .8    -.6    5.3    5.0    1.6    6.9    5.1    6.7     .1    4.7    5.8
  Services..........................    2.6    2.2    2.8    1.1    1.8    1.2    2.3    3.3    3.5    2.4    2.2    2.1    1.8    1.9    2.8    3.3    2.7    3.0    3.7

Gross private domestic investment...   -2.4    4.4   12.9  -13.6   -7.6  -10.5  -22.7   16.8     .3    4.1    -.5    -.8    3.5   22.4   13.9   12.3   19.0    2.4    9.2
  Fixed investment..................   -4.9    5.1   10.0   -2.6   -8.7   -4.5  -10.6   -4.3   -3.5     .2    -.8    2.4   10.9   18.0   10.5    4.5   13.9    8.8    6.7
    Nonresidential..................   -8.9    3.3   10.3   -4.2  -13.6   -6.8  -13.3   -9.7   -9.6   -1.1   -3.2    -.1   11.8   15.7   11.0    4.2   12.5   13.0   10.3
      Structures....................  -17.8   -5.6    1.0   -8.3   -4.0    6.0  -33.2  -18.5  -22.6  -16.0   -6.6  -13.0   14.5   -1.3    7.9   -7.6    6.9   -1.1   -4.1
      Equipment and software........   -5.5    6.4   13.4   -2.8  -16.9  -11.4   -4.2   -6.3   -4.5    4.6   -2.0    4.5   11.0   21.7   12.0    8.0   14.2   17.5   14.9
    Residential.....................    4.8    8.8    9.5    2.2    5.6    1.8   -3.7    9.3   11.3    2.8    4.2    7.5    9.1   22.4    9.6    5.0   16.5    1.6     .3
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................   -2.3    1.9    8.1   -5.3  -12.7  -18.2  -10.8    4.7   11.0    3.1   -4.2   -1.5   -1.6   11.3   17.5    7.3    7.3    6.0   -3.9
    Goods...........................   -4.1    2.2    8.2   -5.4  -17.1  -20.0   -8.8   -1.9   14.0    2.9  -10.2    4.0    -.8   10.1   16.1    9.1    6.0    9.5   -6.9
    Services........................    1.8    1.4    7.8   -5.0    -.7  -13.7  -15.3   21.7    4.5    3.5   10.5  -12.7   -3.4   14.1   20.6    3.4   10.2   -1.8    3.4
  Imports...........................    3.4    4.4    9.8   -3.7  -12.6  -10.3   -3.4   12.5   11.4    5.4    9.6   -2.0    2.5    2.8   17.1   10.6   12.6    4.6    9.1
    Goods...........................    3.7    4.7   10.6   -3.4  -16.9   -8.6   -2.0   10.1   15.3    5.9    8.2   -1.8    5.1     .0   18.4   12.7   13.0    5.0   12.2
    Services........................    1.9    3.1    5.7   -5.0   12.8  -18.3  -10.4   24.7   -5.8    2.8   16.6   -2.6   -9.4   17.9   11.1    1.2   10.6    2.8   -6.0

Government consumption expenditures
 and gross investment...............    4.4    2.8    2.0    5.3    7.9   -1.5    8.5    4.7    4.4    2.1    4.0     .2    7.2     .1    1.6    2.5    2.2     .7     .9
  Federal...........................    7.5    6.6    4.7    8.1    9.1     .0    8.8    8.2   12.8    2.9    9.1     .3   22.1   -3.3    4.8    7.1    2.7    4.8    1.6
    National defense................    7.7    9.0    7.4    7.0    4.3    2.4   12.5    5.8   11.5    3.4   13.5   -2.7   38.4   -7.7   11.6   10.6    1.9   10.1     .0
    Nondefense......................    7.1    2.4    -.5   10.1   18.0   -3.9    2.3   12.6   15.0    1.9    1.6    6.2   -3.9    5.8   -7.5     .2    4.4   -5.3    5.1
  State and local...................    2.8     .7     .4    4.0    7.2   -2.3    8.4    2.9     .3    1.7    1.4     .1    -.4    2.2    -.1     .0    1.9   -1.7     .6

Addenda:
  Final sales of domestic product...    1.4    3.1    4.0    1.6    1.0    -.4    3.8     .3    1.8    2.0     .7    2.4    5.2    6.8    3.7    3.3    2.5    5.0    2.7
  Gross domestic purchases..........    2.5    3.3    4.8    -.4     .7    -.8    2.2    4.4    2.8    2.9    2.4    1.7    4.4    6.4    4.7    5.0    4.2    3.9    4.7
  Final sales to domestic
   purchasers.......................    2.1    3.4    4.4    1.5     .5     .2    4.3    1.4    2.2    2.4    2.3    2.2    5.4    5.9    4.2    3.9    3.5    4.9    4.3
  Gross national product (GNP)......    1.7    3.3  .....   -1.1    1.5   -2.5    3.9    1.4    2.1    3.0    1.4    1.7    4.4    7.6    5.5    3.9    1.9    4.0  .....
  Disposable personal income........    3.1    2.3    3.4    1.3   -1.7   11.5   -5.6   10.8    2.7   -1.7     .2    1.8    4.3    8.2    1.4    2.4    2.8    2.0    8.4

  Current-dollar measures:
    GDP.............................    3.5    4.9    6.6    2.8    4.4     .2    3.6    4.5    4.2    3.9    2.7    4.9    5.3    8.8    5.7    7.4    6.6    5.5    5.3
    Final sales of domestic product.    3.1    5.1    6.2    4.9    4.2    1.2    5.5    1.7    3.3    3.7    2.7    5.3    6.3    8.4    5.4    6.1    5.8    6.5    4.8
    Gross domestic purchases........    4.0    5.4    7.3    2.2    3.0     .2    3.1    5.3    5.6    4.4    4.3    5.7    4.8    8.1    5.9    8.6    7.9    5.9    7.5
    Final sales to domestic
     purchasers.....................    3.6    5.5    6.9    4.3    2.8    1.2    4.9    2.6    4.7    4.2    4.3    6.0    5.8    7.7    5.7    7.4    7.1    6.9    7.1
    GNP.............................    3.4    5.2  .....    2.1    4.6    -.8    6.0    2.4    3.9    4.3    3.4    4.6    5.6    9.0    7.0    6.8    5.2    5.6  .....
    Disposable personal income......    4.6    4.2    5.7    4.6     .8   12.1   -5.0   11.8    5.7     .2    1.5    5.1    5.0    9.9    2.6    5.8    6.0    3.2   11.1
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  See "Explanatory Note" at the end of the tables.

                                                Table 2.--Contributions to Percent Change in Real Gross Domestic Product
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2002   2003   2004   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

    Gross domestic product..........    1.9    3.0    4.4    -.5    1.2   -1.4    1.6    3.4    2.4    2.6     .7    1.9    4.1    7.4    4.2    4.5    3.3    4.0    3.1

Percentage points at annual rates:

  Personal consumption expenditures.   2.14   2.29   2.67   1.07    .67   1.20   4.71   1.32   1.98   2.02   1.74   1.84   2.72   3.58   2.50   2.90   1.10   3.57   3.22

    Durable goods...................    .56    .63    .58    .55   -.03    .26   2.81   -.79    .37   1.16   -.21   -.01   1.64   1.38    .33    .19   -.02   1.37    .56
      Motor vehicles and parts......    .22    .22    .13    .36   -.17    .16   2.24  -1.34    .13   1.09   -.50   -.22    .86    .53   -.07   -.23   -.24    .98    .18
      Furniture and household
       equipment....................    .26    .27    .34    .23    .16    .15    .39    .41    .20    .04    .20    .07    .51    .62    .28    .32    .22    .33    .25
      Other.........................    .08    .15    .11   -.03   -.03   -.06    .18    .14    .04    .03    .08    .14    .27    .23    .12    .10    .00    .06    .13

    Nondurable goods................    .51    .73    .91    .09   -.03    .47    .95    .76    .15   -.12   1.03    .97    .31   1.38   1.01   1.33    .03    .94   1.16
      Food..........................    .18    .37    .47    .24    .05    .09    .18    .26    .29   -.02    .31    .62    .26    .57    .25    .77    .22    .42    .67
      Clothing and shoes............    .12    .12    .18   -.06    .05    .04    .27    .25   -.01   -.12    .30   -.02    .23    .27    .11    .43   -.15    .16    .26
      Gasoline, fuel oil, and other
       energy goods.................    .02    .01    .00    .05   -.33    .11    .24    .00   -.14   -.01    .21    .01   -.29    .10    .33   -.04   -.29    .05    .00
      Other.........................    .17    .23    .26   -.14    .21    .23    .27    .24    .01    .03    .21    .37    .12    .43    .32    .17    .25    .30    .23

    Services........................   1.08    .93   1.18    .43    .73    .47    .95   1.36   1.46    .98    .93    .87    .77    .83   1.15   1.39   1.10   1.26   1.50
      Housing.......................    .29    .15    .19    .31    .28    .21    .26    .42    .33    .19    .13    .12    .11    .16    .09    .23    .21    .25    .21
      Household operation...........    .03    .06    .10   -.25   -.35    .03   -.15    .09    .24    .01    .16    .01   -.11    .08    .29    .13   -.03    .05    .24
        Electricity and gas.........    .04    .03    .04   -.24   -.44    .00   -.07    .11    .19    .04    .19   -.04   -.19    .01    .25    .05   -.13   -.01    .20
        Other household operation...   -.01    .04    .07   -.02    .09    .02   -.08   -.02    .05   -.03   -.03    .05    .08    .07    .04    .07    .09    .06    .05
      Transportation................   -.08   -.02    .03    .05   -.06   -.22   -.17    .01   -.04   -.10   -.01    .05   -.07   -.02   -.01    .05    .08    .04    .08
      Medical care..................    .66    .46    .44    .45    .49    .70    .67    .74    .63    .59    .55    .39    .40    .40    .36    .38    .52    .59    .48
      Recreation....................    .07    .09    .09    .15   -.03    .02    .07    .13    .05    .04    .11    .08    .13    .07    .11    .17    .01    .08    .00
      Other.........................    .11    .20    .33   -.28    .39   -.25    .28   -.03    .24    .25   -.02    .23    .31    .15    .31    .43    .32    .24    .50

  Gross private domestic investment.   -.37    .66   1.96  -2.44  -1.28  -1.76  -3.95   2.34    .05    .61   -.06   -.10    .54   3.16   2.04   1.86   2.85    .40   1.48

    Fixed investment................   -.80    .76   1.52   -.43  -1.51   -.75  -1.81   -.71   -.55    .02   -.13    .35   1.55   2.59   1.57    .69   2.07   1.37   1.06
      Nonresidential................  -1.02    .33   1.02   -.52  -1.76   -.83  -1.63  -1.13  -1.06   -.12   -.33   -.01   1.10   1.50   1.07    .42   1.21   1.27   1.05
        Structures..................   -.57   -.15    .02   -.29   -.14    .19  -1.27   -.59   -.70   -.45   -.17   -.33    .32   -.03    .18   -.19    .16   -.03   -.10
        Equipment and software......   -.45    .48   1.00   -.24  -1.62  -1.02   -.35   -.53   -.36    .33   -.16    .32    .78   1.53    .89    .61   1.05   1.30   1.15
          Information processing
           equipment and software...   -.18    .45    .62   -.08   -.93   -.53   -.21   -.29    .04    .38   -.15    .59    .51   1.04    .61    .62    .55    .30    .68
            Computers and peripheral
             equipment..............    .09    .24    .22    .16   -.22   -.26    .19    .18    .03    .25    .08    .25    .30    .39    .25    .06    .22    .18    .39
            Software................   -.10    .07    .18    .01   -.30   -.07   -.19   -.14   -.03    .11   -.16    .12    .07    .28    .14    .24    .13    .10    .29
            Other...................   -.16    .14    .22   -.25   -.42   -.20   -.21   -.33    .04    .02   -.08    .23    .14    .36    .22    .33    .20    .02    .00
          Industrial equipment......   -.08    .00    .06    .01   -.48   -.27   -.21    .24   -.21    .02   -.05    .09   -.02    .04   -.06    .08    .03    .31    .08
          Transportation equipment..   -.17   -.04    .13   -.22   -.03   -.27    .26   -.39   -.38   -.09    .00   -.31    .25    .14    .14   -.20    .28    .41    .24
          Other equipment...........   -.02    .06    .19    .05   -.19    .05   -.19   -.10    .18    .02    .04   -.06    .03    .31    .20    .10    .20    .28    .16
      Residential...................    .22    .43    .50    .10    .25    .08   -.18    .42    .51    .13    .20    .36    .44   1.09    .50    .27    .86    .09    .01

    Change in private inventories...    .42   -.10    .44  -2.01    .23  -1.02  -2.14   3.05    .60    .59    .07   -.45  -1.01    .57    .47   1.17    .78   -.97    .42
      Farm..........................   -.01    .02    .04    .00   -.28    .09   -.23    .37   -.47    .24    .02    .06   -.07    .06    .19    .06   -.10    .07   -.03
      Nonfarm.......................    .44   -.12    .40  -2.01    .51  -1.11  -1.91   2.69   1.07    .36    .05   -.51   -.94    .52    .29   1.10    .88  -1.04    .44

  Net exports of goods and services.   -.70   -.43   -.61   -.04    .49   -.56   -.66  -1.10   -.46   -.43  -1.69    .14   -.50    .64   -.66   -.76  -1.06   -.10  -1.73

    Exports.........................   -.24    .18    .77   -.59  -1.45  -2.04  -1.11    .43    .99    .29   -.42   -.15   -.15   1.02   1.55    .70    .70    .59   -.40
      Goods.........................   -.29    .14    .54   -.43  -1.43  -1.60   -.63   -.13    .87    .19   -.72    .25   -.06    .64   1.00    .60    .41    .64   -.50
      Services......................    .05    .04    .23   -.16   -.02   -.44   -.48    .56    .13    .10    .30   -.40   -.10    .39    .56    .10    .30   -.06    .10

    Imports.........................   -.46   -.61  -1.38    .56   1.94   1.48    .45  -1.53  -1.45   -.72  -1.27    .29   -.34   -.39  -2.22  -1.46  -1.77   -.69  -1.34
      Goods.........................   -.42   -.54  -1.25    .43   2.23   1.02    .21  -1.04  -1.59   -.65   -.91    .22   -.58    .00  -1.96  -1.43  -1.52   -.62  -1.49
      Services......................   -.04   -.07   -.14    .12   -.28    .47    .25   -.49    .14   -.06   -.36    .06    .24   -.39   -.26   -.03   -.25   -.07    .15

  Government consumption expenditures
   and gross investment.............    .79    .52    .37    .92   1.35   -.28   1.48    .85    .81    .40    .75    .05   1.35    .03    .31    .48    .41    .13    .18

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

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

Addenda:
    Goods...........................    .41   1.41   2.35  -1.57   -.41  -1.89    .88   1.38    .31   1.54  -1.05   1.39   1.32   5.45   1.90   2.65    .82   2.67   1.54
    Services........................   1.69   1.35   1.55   1.04    .98    .93   1.58   1.94   2.39   1.29   1.71    .54   2.11    .67   1.77   1.76   1.30   1.59   1.81
    Structures......................   -.24    .29    .49    .03    .66   -.44   -.87    .09   -.32   -.23    .08    .00    .67   1.29    .52    .07   1.19   -.25   -.21
    Motor vehicle output............    .39    .19    .20   -.69   1.03   -.20    .69    .25    .35    .62    .22   -.46    .11    .84    .11    .30   -.58    .34    .87
    Final sales of computers........    .08    .31    .20    .42   -.13   -.21    .19   -.02    .10    .31    .23    .25    .28    .64    .26    .00    .00    .18    .48
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                            --------------------------------------------          --------------------------------------------  -------------------------
                                       2004    IV 03     I 04    II 04   III 04    IV 04     2004    IV 03     I 04    II 04   III 04    IV 04     2004   III 04    IV 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 11,728.0 11,270.9 11,472.6 11,657.5 11,814.9 11,967.0 10,837.2 10,580.7 10,697.5 10,784.7 10,891.0 10,975.7    455.9    106.3     84.7

Personal consumption expenditures.  8,231.1  7,914.9  8,060.2  8,153.8  8,282.5  8,428.1  7,634.7  7,466.8  7,543.0  7,572.4  7,667.8  7,755.4    279.1     95.4     87.6

  Durable goods...................    995.7    971.1    976.3    975.5  1,007.0  1,023.9  1,101.3  1,069.7  1,075.5  1,074.7  1,118.3  1,136.6     70.7     43.6     18.3
    Motor vehicles and parts......    449.3    444.1    438.4    432.5    458.4    468.0    467.4    463.5    456.7    449.6    478.9    484.5     15.3     29.3      5.6
    Furniture and household
     equipment....................    351.5    338.0    345.0    348.6    353.8    358.8    439.7    414.6    425.6    433.3    445.4    454.6     46.2     12.1      9.2
    Other.........................    194.8    189.0    193.0    194.4    194.7    197.2    198.7    194.0    196.9    196.8    198.5    202.4     12.2      1.7      3.9

  Nondurable goods................  2,376.5  2,250.1  2,316.6  2,354.6  2,387.2  2,447.6  2,208.3  2,152.0  2,187.3  2,188.0  2,213.2  2,244.7     95.9     25.2     31.5
    Food..........................  1,149.7  1,091.8  1,120.3  1,137.5  1,157.0  1,184.1  1,042.8  1,008.6  1,028.4  1,034.3  1,045.4  1,063.0     47.7     11.1     17.6
    Clothing and shoes............    326.5    314.4    325.0    322.9    325.2    332.8    352.3    338.2    351.2    346.5    351.6    359.9     22.1      5.1      8.3
    Gasoline, fuel oil, and other
     energy goods.................    244.8    210.7    229.7    243.2    245.4    261.0    197.5    203.3    202.1    195.0    196.3    196.4       .2      1.3       .1
    Other.........................    655.5    633.1    641.5    651.0    659.6    669.7    617.3    602.1    606.6    613.4    621.4    627.7     27.7      8.0      6.3

  Services........................  4,859.0  4,693.6  4,767.3  4,823.8  4,888.2  4,956.5  4,339.0  4,256.7  4,291.7  4,320.0  4,352.4  4,391.8    118.7     32.4     39.4
    Housing.......................  1,238.8  1,202.8  1,215.4  1,232.7  1,247.3  1,259.7  1,094.7  1,080.3  1,086.0  1,091.5  1,097.9  1,103.4     18.6      6.4      5.5
    Household operation...........    452.1    438.1    445.6    447.6    453.5    461.5    410.9    406.0    409.3    408.4    409.7    416.1     10.7      1.3      6.4
      Electricity and gas.........    177.8    171.2    175.7    174.3    177.4    183.8    150.6    150.6    151.9    148.8    148.5    153.3      3.4      -.3      4.8
      Other household operation...    274.3    266.8    270.0    273.3    276.1    277.7    260.2    255.2    257.1    259.7    261.4    262.7      7.2      1.7      1.3
    Transportation................    301.7    296.5    297.8    300.5    302.6    305.9    280.7    276.7    278.1    280.1    281.3    283.4      3.0      1.2      2.1
    Medical care..................  1,391.3  1,334.0  1,356.8  1,379.1  1,404.4  1,425.0  1,228.4  1,198.3  1,207.9  1,221.0  1,236.1  1,248.5     44.1     15.1     12.4
    Recreation....................    335.3    323.4    330.8    333.0    337.4    340.0    299.5    294.1    298.3    298.5    300.6    300.5      9.2      2.1      -.1
    Other.........................  1,139.8  1,098.8  1,120.9  1,130.9  1,143.1  1,164.3  1,023.8  1,000.3  1,011.2  1,019.4  1,025.7  1,038.8     33.1      6.3     13.1

Gross private domestic investment.  1,922.4  1,758.8  1,819.7  1,920.7  1,947.0  2,002.2  1,839.1  1,714.1  1,764.5  1,842.9  1,853.9  1,895.1    210.3     11.0     41.2

  Fixed investment................  1,879.3  1,755.2  1,783.5  1,861.7  1,915.4  1,956.6  1,790.4  1,702.7  1,721.4  1,778.3  1,816.1  1,845.7    163.1     37.8     29.6
    Nonresidential................  1,217.6  1,146.3  1,158.8  1,198.5  1,238.5  1,274.7  1,225.6  1,161.0  1,173.0  1,207.9  1,245.3  1,276.3    114.8     37.4     31.0
      Structures..................    277.0    268.2    266.0    275.5    281.2    285.2    239.7    242.4    237.7    241.7    241.0    238.5      2.3      -.7     -2.5
      Equipment and software......    940.7    878.1    892.8    923.1    957.3    989.6    996.6    925.6    943.7    975.5  1,015.6  1,051.5    117.4     40.1     35.9
        Information processing
         equipment and software...    484.3    454.7    468.5    480.9    486.3    501.3    571.9    526.6    547.0    565.4    575.6    599.4     79.5     10.2     23.8
          Computers and peripheral
           equipment..............    110.8    104.5    104.4    108.8    111.1    119.1    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    182.4    170.5    176.8    180.0    182.9    190.0    192.4    178.5    185.6    189.5    192.7    201.6     21.2      3.2      8.9
          Other...................    191.0    179.7    187.4    192.2    192.2    192.3    205.0    190.4    200.2    206.2    206.8    206.9     25.6       .6       .1
        Industrial equipment......    150.5    139.5    143.1    145.0    155.2    158.7    144.5    136.8    139.0    139.7    148.5    150.6      6.9      8.8      2.1
        Transportation equipment..    148.0    140.0    134.5    143.2    153.0    161.4    135.3    127.8    122.7    130.0    141.0    147.5     13.7     11.0      6.5
        Other equipment...........    157.8    144.0    146.6    153.9    162.7    168.1    151.1    139.3    142.1    147.5    155.2    159.6     19.9      7.7      4.4
    Residential...................    661.7    609.0    624.6    663.2    677.0    681.9    559.6    535.9    542.5    563.6    565.9    566.3     48.4      2.3       .4

  Change in private inventories...     43.1      3.5     36.2     59.0     31.6     45.5     45.3      8.6     40.0     61.1     34.5     45.8     46.1    -26.6     11.3
    Farm..........................      -.7      -.9      1.0     -2.4      -.2     -1.0      3.6      3.5      5.1      3.0      3.8      2.7      3.3       .8     -1.1
    Nonfarm.......................     43.7      4.5     35.2     61.4     31.8     46.5     41.7      4.6     34.5     58.8     30.4     43.3     42.8    -28.4     12.9

Net exports of goods and services.   -609.3   -502.8   -546.8   -591.3   -611.8   -687.5   -586.4   -528.3   -550.1   -580.3   -583.2   -631.9    -67.9     -2.9    -48.7

  Exports.........................  1,170.2  1,099.2  1,134.3  1,167.6  1,189.5  1,189.6  1,115.3  1,076.2  1,095.4  1,114.8  1,131.1  1,120.0     83.5     16.3    -11.1
    Goods.........................    815.6    761.3    790.3    812.2    833.4    826.5    781.0    750.6    767.2    778.4    796.3    782.3     59.3     17.9    -14.0
    Services......................    354.7    337.9    344.1    355.4    356.1    363.1    334.1    325.4    328.1    336.2    334.6    337.4     24.2     -1.6      2.8

  Imports.........................  1,779.6  1,602.0  1,681.2  1,758.9  1,801.2  1,877.1  1,701.7  1,604.5  1,645.5  1,695.1  1,714.3  1,751.9    151.4     19.2     37.6
    Goods.........................  1,488.8  1,326.4  1,399.2  1,470.1  1,506.9  1,579.1  1,446.0  1,353.2  1,394.1  1,437.4  1,454.9  1,497.4    138.7     17.5     42.5
    Services......................    290.8    275.6    282.0    288.8    294.4    297.9    257.2    251.7    252.4    258.9    260.7    256.8     13.9      1.8     -3.9

Government consumption expenditures
 and gross investment.............  2,183.8  2,100.0  2,139.5  2,174.3  2,197.2  2,224.3  1,946.7  1,923.7  1,935.8  1,946.5  1,949.9  1,954.5     37.3      3.4      4.6

  Federal.........................    810.0    767.5    793.3    804.4    817.4    824.8    721.9    701.2    713.3    718.1    726.6    729.5     32.3      8.5      2.9
    National defense..............    548.1    513.6    534.1    541.2    557.0    559.9    485.1    465.7    477.6    479.9    491.5    491.5     33.3     11.6       .0
      Consumption expenditures....    477.8    450.2    465.2    473.6    487.1    485.2    415.4    401.4    408.5    412.5    422.1    418.3     25.1      9.6     -3.8
      Gross investment............     70.3     63.4     69.0     67.6     69.8     74.7     70.4     64.6     69.9     67.7     69.8     74.2      8.8      2.1      4.4
    Nondefense....................    261.9    253.9    259.1    263.2    260.4    264.9    236.4    235.2    235.4    237.9    234.7    237.6     -1.2     -3.2      2.9
      Consumption expenditures....    227.0    221.1    225.9    226.6    225.9    229.5    201.5    202.0    201.8    201.5    200.2    202.4     -2.5     -1.3      2.2
      Gross investment............     34.9     32.8     33.2     36.5     34.5     35.4     35.1     33.2     33.6     36.8     34.6     35.4      1.6     -2.2       .8

  State and local.................  1,373.9  1,332.6  1,346.3  1,369.9  1,379.8  1,399.5  1,224.7  1,222.5  1,222.4  1,228.3  1,223.2  1,224.9      4.9     -5.1      1.7
      Consumption expenditures....  1,099.8  1,066.3  1,079.8  1,091.8  1,105.5  1,122.0    973.8    970.9    971.5    971.5    974.6    977.6      4.8      3.1      3.0
      Gross investment............    274.1    266.2    266.4    278.0    274.3    277.6    251.0    251.6    251.0    257.1    248.6    247.3       .1     -8.5     -1.3

Residual..........................    .....    .....    .....    .....    .....    .....    -42.3    -26.7    -31.3    -35.6    -44.5    -57.5    .....    .....    .....

Addenda:
  Final sales of domestic product. 11,684.9 11,267.4 11,436.4 11,598.5 11,783.3 11,921.5 10,790.2 10,569.6 10,655.8 10,722.3 10,854.7 10,928.1    410.3    132.4     73.4
  Gross domestic purchases........ 12,337.3 11,773.7 12,019.4 12,248.8 12,426.6 12,654.5 11,416.8 11,104.3 11,241.9 11,358.1 11,467.4 11,599.6    521.1    109.3    132.2
  Final sales to domestic
   purchasers..................... 12,294.3 11,770.1 11,983.2 12,189.8 12,395.1 12,609.0 11,369.6 11,093.2 11,200.1 11,295.5 11,430.9 11,551.7    475.4    135.4    120.8

  Gross domestic product.......... 11,728.0 11,270.9 11,472.6 11,657.5 11,814.9 11,967.0 10,837.2 10,580.7 10,697.5 10,784.7 10,891.0 10,975.7    455.9    106.3     84.7
  Plus: Income receipts from
   the rest of the world..........    .....    371.8    373.8    388.0    406.8    .....    .....    350.7    349.6    359.8    375.5    .....    .....     15.7    .....
  Less: Income payments to
   the rest of the world..........    .....    284.6    300.3    351.9    368.6    .....    .....    268.0    280.3    325.8    339.9    .....    .....     14.1    .....
  Equals: Gross national product..    ..... 11,358.1 11,546.1 11,693.6 11,853.0    .....    ..... 10,663.3 10,766.7 10,818.7 10,926.5    .....    .....    107.8    .....

  Net domestic product............ 10,321.1  9,896.7 10,117.6 10,282.3 10,316.9 10,567.6  9,448.2  9,228.4  9,344.1  9,424.1  9,426.4  9,598.4    402.4      2.3    172.0
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  Note.--Users are cautioned that particularly for components that
exhibit rapid change in prices relative to other prices in the
economy, the chained-dollar estimates should not be used to measure
the component's relative importance or its contribution to the
growth rate of more aggregate series.  For accurate estimates of
the contributions to percent changes in real GDP, use table 2.
  See "Explanatory Note" at the end of the tables.

                              Table 4.--Price Indexes for Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2002   2003   2004   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    1.7    1.8    2.1    3.3    3.1    1.6    1.7    1.4    1.5    1.7    2.0    2.7    1.1    1.4    1.6    2.8    3.2    1.4    2.0

Personal consumption expenditures...    1.4    1.9    2.2    3.3    2.6     .6     .6     .9    2.9    2.0    1.4    3.2     .7    1.6    1.2    3.3    3.1    1.3    2.5
  Durable goods.....................   -2.7   -3.4   -2.0   -1.4   -3.1   -2.8   -1.6   -3.8   -2.5   -2.1   -2.8   -3.7   -3.8   -4.4   -4.3     .0    -.1   -3.1     .2
  Nondurable goods..................     .6    2.0    3.3    1.4    3.5    -.9   -4.0     .0    5.4    1.3    1.2    5.1   -2.2    3.5     .5    5.3    6.6     .9    4.4
  Services..........................    2.7    3.0    2.5    5.3    3.4    2.0    3.3    2.3    2.8    3.2    2.4    3.8    3.1    2.0    2.7    3.0    2.1    2.3    2.0

Gross private domestic investment...     .2    1.1    2.5     .0    1.5    2.1     .2   -1.0    -.1    -.5    2.6    1.4    -.1    1.2    2.7    2.1    4.4    2.9    2.1
  Fixed investment..................     .2    1.2    2.5    -.3    1.8    2.2     .1   -1.1    -.1    -.4    2.7    1.9    -.3    1.2    2.8    2.0    4.3    3.0    2.1
    Nonresidential..................    -.8    -.4     .8   -2.3     .6     .3   -1.0   -1.3   -1.1   -1.3     .6    -.5   -1.3     .3    1.2     .3    1.7     .9    1.7
      Structures....................    2.4    2.1    4.9    6.0    6.5    6.6    2.1     .0    2.1    1.6    3.0    3.9     .0    1.3    1.4    4.8    7.6    9.8   10.3
      Equipment and software........   -1.9   -1.2    -.4   -5.1   -1.5   -2.0   -2.2   -1.7   -2.2   -2.2    -.1   -1.9   -1.7     .0    1.2   -1.1     .1   -1.6    -.6
    Residential.....................    2.5    4.4    5.6    5.5    5.0    6.9    2.8    -.8    2.1    1.6    7.1    6.8    1.7    3.1    5.8    5.4    9.1    6.8    2.7
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    -.4    2.1    3.5     .1   -1.3   -2.0   -3.5   -1.2    3.0    3.0     .4    4.1    1.0     .8    3.2    5.7    4.6    1.6    4.1
    Goods...........................    -.7    2.0    3.8    -.1   -1.6   -2.6   -3.8   -1.4    2.2    3.3     .5    3.5    1.6    -.6    4.2    6.4    5.3    1.2    3.9
    Services........................     .4    2.4    2.9     .6    -.7    -.6   -2.8    -.6    4.8    2.4     .3    5.4    -.6    4.0     .9    4.0    3.2    2.7    4.5
  Imports...........................   -1.2    3.4    4.9   -3.0   -5.9   -5.3  -10.0   -1.9   10.5    3.4     .5   11.3   -4.3    2.6     .9    9.6    6.4    5.1    8.1
    Goods...........................   -1.8    2.9    4.9   -3.8   -6.6   -6.5  -11.3   -2.0   10.8    2.6     .4   12.0   -6.7    2.4     .4    9.9    7.8    5.2    7.5
    Services........................    1.7    5.9    4.9    1.5   -2.2    1.2   -3.3   -1.2    8.8    7.7     .9    7.9    8.4    3.6    3.5    8.3    -.5    5.0   11.5

Government consumption expenditures
 and gross investment...............    2.7    3.2    3.2    3.1    1.8    1.6    1.1    4.2    3.1    2.7    3.3    7.4    -.5    2.2    1.0    5.1    4.3    3.6    4.0
  Federal...........................    3.3    3.6    2.9    1.9    1.1    2.2    1.8    7.4    1.4    1.8    5.1    8.5     .3    1.1    1.0    6.6    3.0    1.7    2.0
    National defense................    3.4    4.2    2.8    3.5     .7    2.5     .8    7.1    1.6    2.9    7.7    8.6    -.3    1.1    1.3    5.7    3.5    1.9    2.1
    Nondefense......................    3.1    2.6    2.9   -1.0    1.8    1.6    3.4    8.0    1.1    -.2     .5    8.2    1.4    1.0     .3    8.3    1.9    1.3    1.9
  State and local...................    2.4    3.0    3.4    3.8    2.1    1.3     .8    2.5    4.0    3.2    2.4    6.8   -1.0    2.9    1.0    4.2    5.2    4.7    5.2

Addenda:
  Final sales of domestic product...    1.7    1.8    2.1    3.3    3.2    1.6    1.7    1.3    1.5    1.7    2.0    2.8    1.1    1.4    1.6    2.7    3.2    1.4    2.0
  Gross domestic purchases..........    1.5    2.0    2.4    2.7    2.3    1.0     .6    1.2    2.5    1.8    1.9    3.7     .4    1.7    1.4    3.4    3.5    1.9    2.7
  Final sales to domestic
   purchasers.......................    1.5    2.0    2.4    2.7    2.3    1.0     .6    1.1    2.5    1.8    1.9    3.8     .3    1.7    1.4    3.4    3.5    1.9    2.7
  Gross national product (GNP)......    1.6    1.8  .....    3.3    3.1    1.6    1.7    1.3    1.5    1.7    2.0    2.7    1.1    1.5    1.6    2.8    3.2    1.4  .....

  Implicit price deflators:
    GDP.............................    1.7    1.8    2.1    3.3    3.1    1.7    2.0    1.0    1.8    1.3    2.0    2.9    1.1    1.3    1.4    2.7    3.2    1.4    2.0
    Gross domestic purchases........    1.5    2.0    2.4    2.7    2.2    1.1     .9     .8    2.8    1.4    1.9    3.9     .4    1.6    1.2    3.4    3.5    2.0    2.7
    GNP.............................    1.6    1.8  .....    3.2    3.1    1.7    2.0    1.0    1.8    1.3    2.0    2.9    1.1    1.3    1.4    2.7    3.2    1.5  .....
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  See "Explanatory Note" at the end of the tables.

                                      Table 5.--Real Gross Domestic Product, Quantity Indexes
                                                     [Index numbers, 2000=100]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Seasonally adjusted
                                                                                ---------------------------------------------------
                                                  2002       2003       2004      IV 03       I 04      II 04     III 04      IV 04
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    102.626    105.749    110.393    107.780    108.969    109.858    110.941    111.803

Personal consumption expenditures..........    105.698    109.143    113.284    110.794    111.925    112.360    113.776    115.076
  Durable goods............................    111.150    119.378    127.559    123.902    124.572    124.482    129.529    131.653
  Nondurable goods.........................    104.630    108.481    113.408    110.517    112.331    112.367    113.659    115.275
  Services.................................    105.085    107.418    110.440    108.346    109.237    109.955    110.782    111.784

Gross private domestic investment..........     89.928     93.852    105.972     98.771    101.672    106.191    106.823    109.199
  Fixed investment.........................     92.253     96.924    106.636    101.412    102.529    105.913    108.170    109.932
    Nonresidential.........................     87.302     90.157     99.477     94.235     95.204     98.041    101.075    103.588
      Structures...........................     80.346     75.810     76.541     77.406     75.886     77.171     76.958     76.149
      Equipment and software...............     89.947     95.679    108.454    100.735    102.699    106.157    110.524    114.436
    Residential............................    105.178    114.392    125.214    119.916    121.400    126.122    126.628    126.708
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     92.343     94.116    101.737     98.170     99.924    101.690    103.176    102.159

Imports of goods and services..............    100.585    105.048    115.311    108.725    111.504    114.862    116.167    118.711

Government consumption expenditures and
 gross investment..........................    107.918    110.906    113.073    111.738    112.443    113.062    113.259    113.527
  Federal..................................    111.725    119.140    124.724    121.154    123.249    124.068    125.539    126.038
  State and local..........................    105.999    106.739    107.166    106.968    106.965    107.482    107.033    107.185

Addenda:
  Final sales of domestic product..........    103.102    106.346    110.551    108.290    109.173    109.854    111.211    111.963
  Gross domestic purchases.................    103.414    106.858    111.968    108.904    110.253    111.393    112.465    113.761
  Final sales to domestic purchasers.......    103.876    107.438    112.126    109.401    110.455    111.396    112.731    113.923
  Gross national product...................    102.494    105.865      .....    108.192    109.241    109.769    110.863      .....
-----------------------------------------------------------------------------------------------------------------------------------
  See "Explanatory Note" at the end of the tables.

                                        Table 6.--Price Indexes for Gross Domestic Product
                                                     [Index numbers, 2000=100]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Seasonally adjusted
                                                                                ---------------------------------------------------
                                                  2002       2003       2004      IV 03       I 04      II 04     III 04      IV 04
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    104.097    106.003    108.281    106.586    107.314    108.169    108.551    109.091

Personal consumption expenditures
 (PCE).....................................    103.548    105.511    107.810    106.005    106.860    107.683    108.021    108.677
  Durable goods............................     95.475     92.244     90.380     90.747     90.741     90.725     90.008     90.047
  Nondurable goods.........................    102.097    104.154    107.612    104.564    105.914    107.616    107.869    109.048
  Services.................................    106.083    109.237    111.982    110.266    111.085    111.667    112.314    112.861

Gross private domestic investment..........    101.221    102.304    104.882    102.968    103.514    104.644    105.405    105.966
  Fixed investment.........................    101.232    102.435    104.958    103.101    103.618    104.709    105.482    106.024
    Nonresidential.........................     98.909     98.546     99.336     98.729     98.793     99.220     99.449     99.880
      Structures...........................    107.908    110.176    115.543    110.633    111.926    113.984    116.677    119.585
      Equipment and software...............     95.868     94.754     94.400     94.862     94.611     94.626     94.256     94.107
    Residential............................    107.246    111.951    118.258    113.675    115.179    117.710    119.674    120.470
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     99.275    101.395    104.929    102.146    103.565    104.746    105.175    106.232

Imports of goods and services..............     96.326     99.615    104.533     99.837    102.163    103.760    105.066    107.142

Government consumption expenditures and
 gross investment..........................    105.313    108.702    112.178    109.167    110.522    111.703    112.682    113.804
  Federal..................................    105.288    109.081    112.193    109.447    111.203    112.020    112.491    113.059
  State and local..........................    105.317    108.485    112.177    109.007    110.131    111.524    112.802    114.253

Addenda:
  PCE excluding food and energy............    103.707    105.072    106.635    105.527    106.081    106.523    106.753    107.181
  Market-based PCE\1\......................    103.113    105.040    107.418    105.496    106.334    107.292    107.674    108.371
  Market-based PCE excluding food
   and energy\1\...........................    103.186    104.388    105.903    104.790    105.261    105.798    106.060    106.495
  Final sales of domestic product..........    104.100    106.025    108.292    106.608    107.332    108.178    108.561    109.097
  Gross domestic purchases.................    103.489    105.571    108.118    106.086    106.980    107.913    108.429    109.149
  Final sales to domestic purchasers.......    103.491    105.592    108.129    106.107    106.997    107.923    108.440    109.157
  Gross national product...................    104.087    105.997      .....    106.579    107.308    108.164    108.549      .....

  Implicit price deflators:
    Gross domestic product.................    104.092    105.998    108.220    106.523    107.246    108.093    108.482    109.033
    Final sales of domestic product........    104.100    106.025    108.292    106.601    107.325    108.172    108.555    109.090
    Gross domestic purchases...............    103.484    105.566    108.063    106.028    106.916    107.842    108.364    109.095
    Final sales to domestic purchasers.....    103.491    105.592    108.133    106.102    106.992    107.917    108.435    109.152
    Gross national product.................    104.082    105.992      .....    106.516    107.240    108.087    108.479      .....
-----------------------------------------------------------------------------------------------------------------------------------
  1. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.  Percentage changes for these series are
included in the addenda to table 8 and appendix table A.
  See "Explanatory Note" at the end of the tables.

                                               Table 7.--Real Gross Domestic Product: Percent Change from Preceding Year
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           1989    1990    1991    1992    1993    1994    1995    1996    1997    1998    1999    2000    2001    2002    2003    2004
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     3.5     1.9     -.2     3.3     2.7     4.0     2.5     3.7     4.5     4.2     4.5     3.7      .8     1.9     3.0     4.4

Personal consumption expenditures......     2.8     2.0      .2     3.3     3.3     3.7     2.7     3.4     3.8     5.0     5.1     4.7     2.5     3.1     3.3     3.8
  Durable goods........................     2.2     -.3    -5.6     5.9     7.8     8.4     4.4     7.8     8.6    11.3    11.7     7.3     4.3     6.5     7.4     6.9
  Nondurable goods.....................     2.8     1.6     -.2     2.0     2.7     3.5     2.2     2.6     2.7     4.0     4.6     3.8     2.0     2.6     3.7     4.5
  Services.............................     3.0     2.9     1.7     3.5     2.8     2.9     2.6     2.9     3.3     4.2     4.0     4.5     2.4     2.6     2.2     2.8

Gross private domestic investment......     4.0    -3.4    -8.1     8.1     8.9    13.6     3.1     8.9    12.4     9.8     7.8     5.7    -7.9    -2.4     4.4    12.9
  Fixed investment.....................     3.0    -2.1    -6.5     5.9     8.6     9.3     6.5     9.0     9.2    10.2     8.3     6.5    -3.0    -4.9     5.1    10.0
    Nonresidential.....................     5.6      .5    -5.4     3.2     8.7     9.2    10.5     9.3    12.1    11.1     9.2     8.7    -4.2    -8.9     3.3    10.3
      Structures.......................     2.0     1.5   -11.1    -6.0     -.7     1.8     6.4     5.6     7.3     5.1     -.4     6.8    -2.3   -17.8    -5.6     1.0
      Equipment and software...........     7.3      .0    -2.6     7.3    12.5    11.9    12.0    10.6    13.8    13.3    12.7     9.4    -4.9    -5.5     6.4    13.4
    Residential........................    -3.0    -8.6    -9.6    13.8     8.2     9.6    -3.2     8.0     1.9     7.6     6.0      .8      .4     4.8     8.8     9.5
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................    11.5     9.0     6.6     6.9     3.2     8.7    10.1     8.4    11.9     2.4     4.3     8.7    -5.4    -2.3     1.9     8.1
    Goods..............................    11.9     8.4     6.9     7.5     3.3     9.7    11.7     8.8    14.3     2.2     3.8    11.2    -6.1    -4.1     2.2     8.2
    Services...........................    10.3    10.5     6.0     5.5     3.2     6.3     6.3     7.2     5.9     2.9     5.6     2.9    -3.7     1.8     1.4     7.8
  Imports..............................     4.4     3.6     -.6     7.0     8.8    11.9     8.0     8.7    13.6    11.6    11.5    13.1    -2.7     3.4     4.4     9.8
    Goods..............................     4.3     3.0     -.1     9.3    10.1    13.3     9.0     9.3    14.4    11.7    12.4    13.5    -3.2     3.7     4.7    10.6
    Services...........................     4.9     6.5    -2.6    -2.6     2.9     5.7     3.3     5.5     9.4    11.4     6.9    11.1     -.3     1.9     3.1     5.7

Government consumption expenditures
 and gross investment..................     2.6     3.2     1.1      .5     -.9      .0      .5     1.0     1.9     1.9     3.9     2.1     3.4     4.4     2.8     2.0
  Federal..............................     1.5     2.0     -.2    -1.7    -4.2    -3.7    -2.7    -1.2    -1.0    -1.1     2.2      .9     3.9     7.5     6.6     4.7
    National defense...................     -.5      .0    -1.1    -5.0    -5.6    -4.9    -3.8    -1.4    -2.8    -2.1     1.9     -.5     3.9     7.7     9.0     7.4
    Nondefense.........................     8.3     8.3     2.4     6.9     -.7    -1.2     -.4     -.7     2.6      .7     2.8     3.5     3.9     7.1     2.4     -.5
  State and local......................     3.4     4.1     2.1     2.2     1.4     2.6     2.6     2.3     3.6     3.6     4.7     2.7     3.2     2.8      .7      .4

Addenda:
  Final sales of domestic product......     3.4     2.1      .1     3.0     2.6     3.4     3.0     3.7     4.0     4.2     4.5     3.8     1.6     1.4     3.1     4.0
  Gross domestic purchases.............     3.0     1.4     -.8     3.3     3.2     4.4     2.4     3.8     4.8     5.3     5.3     4.4      .9     2.5     3.3     4.8
  Final sales to domestic purchasers...     2.8     1.6     -.6     3.1     3.2     3.8     2.8     3.8     4.3     5.3     5.4     4.5     1.8     2.1     3.4     4.4
  Gross national product...............     3.5     2.0     -.3     3.3     2.7     3.9     2.6     3.7     4.4     4.0     4.6     3.7      .8     1.7     3.3   .....
  Real disposable personal income......     2.8     1.9      .5     3.4     1.0     2.7     2.8     3.0     3.5     5.8     3.0     4.8     1.9     3.1     2.3     3.4

  Price indexes:
    Gross domestic purchases...........     3.8     4.1     3.3     2.3     2.2     2.1     2.1     1.8     1.4      .6     1.6     2.5     2.0     1.5     2.0     2.4
    Gross domestic purchases excluding
     food and energy...................     3.6     3.7     3.5     2.6     2.3     2.2     2.2     1.5     1.3     1.0     1.4     1.9     1.9     1.8     1.6     1.9
    GDP................................     3.8     3.9     3.5     2.3     2.3     2.1     2.0     1.9     1.7     1.1     1.4     2.2     2.4     1.7     1.8     2.1
    GDP excluding food and energy......     3.6     3.7     3.6     2.5     2.4     2.2     2.1     1.7     1.7     1.2     1.5     2.0     2.1     2.0     1.6     1.9
    Personal consumption expenditures..     4.4     4.6     3.6     2.9     2.3     2.1     2.1     2.2     1.7      .9     1.7     2.5     2.1     1.4     1.9     2.2
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           I 01   II 01  III 01   IV 01    I 02   II 02  III 02   IV 02    I 03   II 03  III 03   IV 03    I 04   II 04  III 04   IV 04
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     1.9      .6      .4      .2     1.2     1.5     2.5     2.3     1.9     2.3     3.5     4.4     5.0     4.8     4.0     3.7

Personal consumption expenditures
 (PCE).................................     2.9     2.5     2.0     2.8     2.9     3.3     3.6     2.5     2.7     3.0     3.5     3.8     4.2     3.6     3.6     3.9
  Durable goods........................      .8     3.2     2.5    10.8     6.6     7.8    10.6     1.5     3.8     7.6     8.2     9.9    10.5     5.4     5.5     6.3
  Nondurable goods.....................     3.0     1.6     1.6     1.9     2.7     3.0     2.2     2.3     2.6     2.8     4.7     4.6     5.1     4.7     4.1     4.3
  Services.............................     3.3     2.8     2.0     1.6     2.2     2.6     2.9     2.9     2.6     2.1     2.0     2.2     2.5     2.7     2.9     3.2

Gross private domestic investment......     -.5    -8.5    -8.6   -13.8    -7.1    -5.1    -1.5     5.0      .7     1.5     5.7     9.4    12.8    16.8    11.7    10.6
  Fixed investment.....................     1.6    -2.9    -3.8    -6.7    -7.1    -5.8    -4.6    -2.1     -.4     3.1     7.4    10.3    10.9    11.6     9.4     8.4
    Nonresidential.....................     3.2    -3.9    -6.1    -9.6   -10.9    -9.9    -8.5    -6.0    -3.6     1.7     5.8     9.4    10.6    10.8    10.1     9.9
      Structures.......................     4.6     -.6    -1.4   -11.1   -13.7   -18.3   -22.9   -16.1   -14.8    -6.0    -2.1     1.5     3.0     1.3     1.3    -1.6
      Equipment and software...........     2.7    -5.1    -7.8    -9.0    -9.8    -6.7    -2.7    -2.2      .5     4.4     8.4    12.1    13.1    13.9    12.9    13.6
    Residential........................    -2.3     -.1     2.5     1.4     3.1     4.5     4.7     6.9     6.4     5.9    10.6    12.0    11.3    13.2     8.0     5.7
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................     3.4    -2.9    -9.9   -11.9    -9.6    -4.0     1.7     3.5     1.9    -1.1      .8     6.1     8.4    10.8     9.4     4.1
    Goods..............................     4.8    -3.2   -12.2   -13.0   -12.2    -5.0     1.2      .8     2.3    -1.2      .5     7.1     8.5    10.3    10.1     4.2
    Services...........................      .1    -2.0    -4.0    -8.9    -3.1    -1.8     2.7     9.8     1.0     -.9     1.5     3.8     8.3    11.9     7.8     3.7
  Imports..............................     5.9    -1.4    -7.2    -7.6    -3.9     2.1     6.3     9.7     6.0     3.8     3.2     4.9     8.1    10.7    11.1     9.2
    Goods..............................     6.3    -2.6    -7.8    -7.9    -4.8     3.3     7.1     9.8     6.7     4.3     2.8     5.1     8.8    10.8    12.1    10.7
    Services...........................     4.2     4.7    -3.7    -5.9      .7    -3.7     2.0     8.9     2.4     1.4     5.0     3.7     4.7    10.0     6.3     2.0

Government consumption expenditures
 and gross investment..................     2.5     3.0     3.2     5.0     4.8     4.0     4.9     3.8     2.7     3.3     2.8     2.2     2.8     1.6     1.8     1.6
  Federal..............................     3.6     1.7     4.0     6.4     6.4     7.3     8.1     8.2     6.1     8.3     6.6     5.5     7.3     2.7     4.8     4.0
    National defense...................     4.2     1.3     3.8     6.5     6.2     8.0     8.2     8.5     6.2    12.1     9.0     8.5    12.1     3.8     8.5     5.5
    Nondefense.........................     2.5     2.6     4.2     6.3     6.9     6.2     7.8     7.6     6.1     1.4     2.4      .0    -1.5      .6    -2.2     1.0
  State and local......................     1.9     3.7     2.8     4.2     4.0     2.2     3.3     1.6      .9      .7      .8      .4      .4     1.0      .0      .2

Addenda:
  Final sales of domestic product......     2.2     1.6     1.2     1.5     1.2     1.4     2.0     1.2     1.7     2.6     3.8     4.5     4.7     4.1     3.6     3.4
  Gross domestic purchases.............     2.3      .7      .4      .4     1.6     2.1     3.1     3.1     2.4     2.8     3.7     4.3     5.1     5.1     4.5     4.5
  Final sales to domestic purchasers...     2.6     1.7     1.2     1.6     1.6     2.0     2.6     2.1     2.3     3.1     3.9     4.4     4.9     4.4     4.1     4.1
  Gross national product...............     1.9      .7      .2      .4     1.0     1.2     2.6     2.0     2.0     2.6     3.7     4.8     5.3     4.7     3.8   .....
  Real disposable personal income......     2.4     1.3     2.8     1.2     3.5     4.6     1.4     2.9      .7     1.1     3.5     3.9     4.0     3.7     2.1     3.9

  Price indexes:
    Gross domestic purchases...........     2.1     2.3     1.9     1.6     1.3     1.3     1.5     1.8     2.5     1.9     1.9     1.8     1.7     2.5     2.6     2.9
    Gross domestic purchases excluding
     food and energy...................     1.7     1.8     1.9     2.1     1.9     1.8     1.8     1.6     1.8     1.6     1.5     1.4     1.5     1.9     2.1     2.2
    GDP................................     2.2     2.5     2.4     2.4     1.9     1.5     1.5     1.6     2.0     1.9     1.8     1.7     1.7     2.3     2.3     2.4
    GDP excluding food and energy......     1.8     2.0     2.1     2.3     2.2     2.0     1.9     1.7     1.9     1.6     1.5     1.4     1.4     1.9     2.1     2.2
    PCE................................     2.2     2.4     2.0     1.7     1.1     1.2     1.6     1.8     2.4     1.8     1.7     1.7     1.7     2.3     2.2     2.5
    PCE excluding food and energy......     1.6     1.8     2.0     2.2     1.8     1.8     1.9     1.5     1.6     1.4     1.1     1.2     1.4     1.5     1.5     1.6
    Market-based PCE\1\................     2.2     2.3     1.9     1.3      .8      .9     1.2     1.7     2.3     1.8     1.8     1.6     1.7     2.4     2.3     2.7
    Market-based PCE excluding food
     and energy\1\.....................     1.5     1.7     1.8     1.8     1.5     1.6     1.5     1.4     1.4     1.2     1.1     1.0     1.3     1.5     1.4     1.6
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  1. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.

                     Table 9.--Relation of Gross Domestic Product, Gross National Product, and National Income
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2002       2003       2004      IV 03       I 04      II 04     III 04      IV 04
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   10,487.0   11,004.0   11,728.0   11,270.9   11,472.6   11,657.5   11,814.9   11,967.0

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

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

Less: Consumption of fixed capital.........    1,303.9    1,353.9    1,406.9    1,374.2    1,355.0    1,375.2    1,497.9    1,399.5
Less: Statistical discrepancy..............      -15.3       25.6      .....       12.8       63.0       56.4       90.4      .....

Equals: National income....................    9,225.4    9,679.6      .....    9,971.1   10,128.1   10,262.0   10,264.7      .....
  Compensation of employees................    6,069.5    6,289.0    6,616.6    6,406.7    6,489.4    6,578.5    6,657.4    6,741.1
    Wage and salary accruals...............    4,976.3    5,103.6    5,342.6    5,188.9    5,240.7    5,311.4    5,375.0    5,443.2
    Supplements to wages and salaries......    1,093.2    1,185.5    1,274.1    1,217.8    1,248.8    1,267.2    1,282.3    1,297.9
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      769.6      834.1      902.4      864.7      872.1      901.4      902.9      933.1
  Rental income of persons with capital
   consumption adjustment..................      170.9      153.8      165.6      167.1      172.8      172.6      153.8      163.1
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................      874.6    1,021.1      .....    1,129.1    1,165.6    1,173.9    1,118.0      .....
  Net interest and miscellaneous payments..      532.9      543.0      548.2      545.3      554.5      548.5      546.7      543.0
  Taxes on production and imports less
   subsidies...............................      724.4      751.3      800.1      769.4      782.9      796.3      803.5      817.9
  Business current transfer payments.......       80.9       77.7       81.7       80.1       82.7       83.5       76.0       84.4
  Current surplus of government
   enterprises.............................        2.8        9.5        6.7        8.7        8.1        7.4        6.5        4.7

Addendum:
  Gross domestic income....................   10,502.3   10,978.5      .....   11,258.1   11,409.6   11,601.1   11,724.5      .....
-----------------------------------------------------------------------------------------------------------------------------------

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2002       2003       2004      IV 03       I 04      II 04     III 04      IV 04
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    8,878.9    9,161.8    9,659.1    9,330.0    9,445.0    9,592.7    9,674.3    9,924.6

  Compensation of employees, received......    6,069.5    6,289.0    6,616.6    6,406.7    6,487.9    6,580.0    6,657.4    6,741.1
    Wage and salary disbursements..........    4,976.3    5,103.6    5,342.6    5,188.9    5,239.2    5,312.8    5,375.0    5,443.2
    Supplements to wages and salaries......    1,093.2    1,185.5    1,274.1    1,217.8    1,248.8    1,267.2    1,282.3    1,297.9
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      769.6      834.1      902.4      864.7      872.1      901.4      902.9      933.1
    Farm...................................        9.7       21.8       18.0       24.7       17.9       18.9       13.6       21.6
    Nonfarm................................      759.9      812.3      884.4      840.0      854.2      882.5      889.3      911.6
  Rental income of persons with capital
   consumption adjustment..................      170.9      153.8      165.6      167.1      172.8      172.6      153.8      163.1
  Personal income receipts on assets.......    1,334.6    1,322.7    1,386.6    1,325.8    1,337.1    1,352.3    1,367.8    1,489.3
    Personal interest income...............      946.7      929.9      945.6      932.0      936.2      941.7      946.5      957.9
    Personal dividend income...............      387.9      392.8      441.1      393.8      400.9      410.6      421.3      531.4
  Personal current transfer receipts.......    1,282.7    1,335.4    1,406.3    1,350.7    1,379.0    1,400.4    1,415.4    1,430.2

  Less: Contributions for government
   social insurance........................      748.3      773.2      818.3      785.0      803.9      814.0      823.0      832.3

Less: Personal current taxes...............    1,051.2    1,001.9    1,036.4    1,009.4    1,006.6    1,030.6    1,043.7    1,064.5

Equals: Disposable personal income.........    7,827.7    8,159.9    8,622.8    8,320.5    8,438.4    8,562.1    8,630.7    8,860.0

Less: Personal outlays.....................    7,668.5    8,049.3    8,532.8    8,209.4    8,351.6    8,448.7    8,588.1    8,742.8

Equals: Personal saving....................      159.2      110.6       90.0      111.1       86.8      113.4       42.6      117.2

  Personal saving as a percentage of
   disposable personal income..............        2.0        1.4        1.0        1.3        1.0        1.3         .5        1.3

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    7,559.5    7,733.8    7,997.9    7,849.6    7,897.0    7,951.5    7,990.2    8,152.9
-----------------------------------------------------------------------------------------------------------------------------------
  1. Personal income is also equal to national income less corporate
profits with inventory valuation and capital consumption adjustments,
taxes on production and imports less subsidies, contributions for
government social insurance, net interest and miscellaneous payments,
business current transfer payments, current surplus of government
enterprises, and wage accruals less disbursements, plus personal
income receipts on assets, and personal current transfer receipts.
  2. Equals disposable personal income deflated by the implicit price
deflator for personal consumption expenditures.

                      Appendix Table A.--Real Gross Domestic Product and Related Aggregates and Price Indexes: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2002   2003   2004   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04  II 04 III 04  IV 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................    1.9    3.0    4.4    -.5    1.2   -1.4    1.6    3.4    2.4    2.6     .7    1.9    4.1    7.4    4.2    4.5    3.3    4.0    3.1

  Goods.............................    1.2    4.3    7.3   -4.5   -1.3   -5.5    2.6    4.1     .9    4.7   -3.2    4.3    4.1   17.7    5.8    8.2    2.5    8.3    4.7
  Services..........................    3.0    2.3    2.7    1.9    1.8    1.7    2.8    3.4    4.2    2.2    3.0     .9    3.6    1.1    3.1    3.0    2.3    2.8    3.2
  Structures........................   -2.4    3.0    5.1     .4    7.0   -4.3   -8.5     .9   -3.3   -2.4     .9     .0    7.3   13.9    5.4     .7   12.7   -2.5   -2.1

  Motor vehicle output..............   11.6    4.2    5.6  -18.5   36.3   -5.7   22.0    7.3   10.3   18.4    6.0  -12.4    3.0   26.3    2.9    8.8  -15.2   10.4   28.0
  GDP excluding motor vehicle
   output...........................    1.5    3.0    4.3     .2     .2   -1.2     .9    3.3    2.1    2.1     .5    2.5    4.1    6.8    4.2    4.3    4.0    3.8    2.3

  Final sales of computers\1\.......    8.8   41.0   22.1   48.2  -11.2  -19.4   23.7   -3.7   12.2   46.0   30.9   35.1   37.8   93.7   29.0     .1     .1   20.7   61.7
  GDP excluding final sales of
   computers........................    1.8    2.8    4.2    -.9    1.4   -1.2    1.4    3.4    2.3    2.3     .5    1.7    3.8    6.8    4.0    4.5    3.3    3.9    2.7

  Farm gross value added\2\.........    6.5    4.0   -9.9   -1.3  -31.0  -20.4   94.2  -39.2   69.9   26.1  -19.5  -13.9   52.3     .5  -30.6  -31.3  -21.3   36.4   76.9

  Nonfarm business gross value
   added\3\.........................    1.8    3.8    5.3   -1.1    1.2   -2.9    1.2    4.0    1.7    3.6    1.4    2.4    5.3    9.3    4.6    5.7    4.2    4.2    2.8

Price indexes:
  GDP...............................    1.7    1.8    2.1    3.3    3.1    1.6    1.7    1.4    1.5    1.7    2.0    2.7    1.1    1.4    1.6    2.8    3.2    1.4    2.0
  GDP excluding food and energy.....    2.0    1.6    1.9    2.4    2.3    2.1    2.6    1.7    1.8    1.6    1.7    2.3     .8    1.1    1.5    2.3    2.7    1.8    2.0
  GDP excluding final sales of
   computers........................    1.9    2.0    2.3    3.8    3.3    1.8    1.9    1.6    1.7    1.9    2.2    2.9    1.2    1.6    1.7    2.9    3.3    1.5    2.2

  Gross domestic purchases..........    1.5    2.0    2.4    2.7    2.3    1.0     .6    1.2    2.5    1.8    1.9    3.7     .4    1.7    1.4    3.4    3.5    1.9    2.7
  Gross domestic purchases excluding
   food and energy..................    1.8    1.6    1.9    2.3    2.0    1.8    2.3    1.5    1.7    1.6    1.6    2.2    1.0    1.2    1.5    2.5    2.5    1.7    1.9
  Gross domestic purchases excluding
   final sales of computers to
   domestic purchasers..............    1.7    2.2    2.6    3.3    2.6    1.3     .9    1.4    2.6    2.0    2.1    4.0     .5    1.9    1.5    3.6    3.7    2.1    2.9

  Personal consumption expenditures
   (PCE)............................    1.4    1.9    2.2    3.3    2.6     .6     .6     .9    2.9    2.0    1.4    3.2     .7    1.6    1.2    3.3    3.1    1.3    2.5
  Personal consumption expenditures
   excluding food and energy........    1.8    1.3    1.5    2.8    2.1    1.4    2.6    1.2    2.0    2.0     .9    1.5    1.1     .9    1.3    2.1    1.7     .9    1.6
  Market-based PCE\4\...............    1.1    1.9    2.3    2.8    2.1     .8    -.5     .6    2.9    1.8    1.5    3.0     .6    2.0     .8    3.2    3.7    1.4    2.6
  Market-based PCE excluding food
   and energy\4\....................    1.5    1.2    1.5    2.1    1.3    1.9    1.6    1.0    1.8    1.7    1.1     .9    1.1    1.3     .8    1.8    2.1    1.0    1.7
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  1. For some components of final sales of computers, includes
computer parts.
  2. Farm output less intermediate goods and services purchased.
  3. Consists of GDP less gross value added of farm, of
households and institutions, and of general government.
  4. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.
  See "Explanatory Note" at the end of the tables.


     Explanatory Note: NIPA Measures of Quantities and Prices


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

     Annual changes in quantities and prices are calculated using a Fisher formula that incorporates
weights from two adjacent years.  (Quarterly changes in quantities and prices are calculated using a
Fisher formula that incorporates weights from two adjacent quarters; quarterly indexes are adjusted for
consistency to the annual indexes before percent changes are calculated.)  For example, the 2002-03
annual percent change in real GDP uses prices for 2002 and 2003 as weights, and the 2002-03 annual
percent change in GDP prices uses quantities for 2002 and 2003 as weights.  These annual changes are
"chained" (multiplied) together to form time series of quantity and price indexes.  Percent changes in
Fisher indexes are not affected by the choice of reference year.  (BEA also publishes a measure of the
price level known as the implicit price deflator (IPD), which is calculated as the ratio of the
current-dollar value to the corresponding chained-dollar value, multiplied by 100.  The values of the IPD
are very close to the values of the corresponding "chain-type" price index.)

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

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

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

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