News Release

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, OCTOBER 28, 2005
BEA 05-47

Gross Domestic Product: Third Quarter 2005 "advance" estimates; technical note; highlights

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Virginia H. Mannering:  (202)       606-5304                                  BEA 05-47
Recorded message:       (202)       606-5306


                        GROSS DOMESTIC PRODUCT:  THIRD QUARTER 2005 (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 3.8 percent in the third quarter of 2005,
according to advance estimates released by the Bureau of Economic Analysis.  In the second quarter,
real GDP increased 3.3 percent.
 
    The Bureau emphasized that the third-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 third-
quarter "preliminary" estimates, based on more comprehensive data, will be released on November 30,
2005.

    The major contributors to the increase in real GDP in the third quarter were personal consumption
expenditures (PCE), equipment and software, federal government spending, and residential fixed
investment. The contributions of these components were partly offset by a negative contribution from
private inventory investment.

    The acceleration in real GDP growth in the third quarter primarily reflected a smaller decrease in
private inventory investment and accelerations in PCE and in federal government spending that were
partly offset by decelerations in exports, in residential fixed investment, and in state and local
government spending. 

    Final sales of computers contributed 0.11 percentage point to the third-quarter growth in real GDP
after contributing 0.32 percentage point to the second-quarter growth.  Motor vehicle output contributed
0.48 percentage point to the third-quarter growth in real GDP after subtracting 0.01 percentage point
from the second-quarter growth.  

    The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 4.0 percent in the third quarter, compared with an increase of 3.3 percent in the second. 
Excluding food and energy prices, the price index for gross domestic purchases increased 2.2 percent in
the third quarter, compared with an increase of 2.1 percent in the second.   



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 3.9 percent in the third quarter, compared with
an increase of 3.4 percent in the second.  Durable goods purchases increased 10.8 percent, compared
with an increase of 7.9 percent.  Nondurable goods purchases increased 2.6 percent, compared with an
increase of 3.6 percent.  Services expenditures increased 3.2 percent, compared with an increase of 2.3
percent.

    Real nonresidential fixed investment increased 6.2 percent in the third quarter, compared with an
increase of 8.8 percent in the second.  Nonresidential structures decreased 1.4 percent, in contrast to an
increase of 2.7 percent.  Equipment and software increased 8.9 percent, compared with an increase of
10.9 percent.  Real residential fixed investment increased 4.8 percent, compared with an increase of 10.8
percent.  
                                    
    Real exports of goods and services increased 0.8 percent in the third quarter, compared with an
increase of 10.7 percent in the second.  Real imports of goods and services was unchanged in the third
quarter; imports decreased 0.3 percent in the second quarter.

    Real federal government consumption expenditures and gross investment increased 7.7 percent in
the third quarter, compared with an increase of 2.4 percent in the second.  National defense increased
10.2 percent, compared with an increase of 3.7 percent.  Nondefense increased 2.6 percent, in contrast to
a decrease of 0.2 percent.  Real state and local government consumption expenditures and gross
investment increased 0.7 percent, compared with an increase of 2.6 percent.

    The real change in private inventories subtracted 0.55 percentage point from the third-quarter
change in real GDP after subtracting 2.14 percentage points from the second-quarter change.  Private
businesses reduced inventories $16.6 billion in the third quarter, following a decrease of $1.7 billion in
the second quarter and an increase of $58.2 billion in the first.

    Real final sales of domestic product -- GDP less change in private inventories -- increased 4.4
percent in the third quarter, compared with an increase of 5.6 percent in the second.


Gross domestic purchases

    Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 3.5 percent in the third quarter, compared with an increase of 2.1 percent in the
second.


Disposition of personal income

    Current-dollar personal income increased $71.8 billion (2.8 percent) in the third quarter, compared
with an increase of $147.8 billion (6.0 percent) in the second.  The slowdown in personal income partly
reflected the impacts of Hurricanes Katrina and Rita.  Rental income and proprietors' income were
reduced by the property damage caused by the hurricanes, and current transfer receipts were increased
by insurance settlements related to the hurricanes.  For more information, see the FAQs on "Disasters"
on BEA's Web site.

    Personal current taxes increased $10.2 billion, compared with an increase of $41.2 billion.

    Disposable personal income increased $61.6 billion (2.8 percent) in the third quarter, compared
with an increase of $106.6 billion (4.9 percent) in the second.  Real disposable personal income
decreased 0.9 percent, in contrast to an increase of 1.5 percent.

    Personal outlays increased $169.0 billion (7.7 percent) in the third quarter, compared with an
increase of $146.6 billion (6.8 percent) in the second.  Personal saving -- disposable personal income
less personal outlays -- was a negative $100.1 billion in the third quarter, compared with $7.4 billion in
the second.  The personal saving rate -- saving as a percentage of disposable personal income --
decreased from 0.1 percent in the second quarter to a negative 1.1 percent in the third.  Saving from
current income may be near zero or negative when outlays are financed by borrowing (including
borrowing financed through credit cards or home equity loans), by selling investments or other assets, or
by using savings from previous periods.  For more information, see the FAQs on "Personal Saving" on
BEA's Web site.


Current-dollar GDP

    Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
7.0 percent, or $211.6 billion, in the third quarter to a level of $12,589.6 billion.  In the second quarter,
current-dollar GDP increased 6.0 percent, or $179.2 billion.



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



    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
                

                         *          *          *


           Next release -- November 30, 2005, at 8:30 A.M. EST for:
           Gross Domestic Product:  Third Quarter 2005 (Preliminary)
           Corporate Profits:  Third Quarter 2005
     



                    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 third-quarter change in real GDP now
estimated at 3.8 percent at an annual rate, is not likely to be revised below
3.2 percent or above 4.7 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                  -1.2 to 1.8       -2.2 to 3.4
Preliminary to latest......      1.2                  -1.0 to 1.7       -2.2 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                  -1.2 to 2.1       -2.5 to 3.3
Preliminary to latest......      1.4                  -1.3 to 1.9       -2.3 to 2.9
Final to latest...........       1.5                  -1.5 to 2.1       -2.7 to 3.1

NOTE.--These comparisons are based on the period from 1978 through 2004 for the first three comparisons in each group and on the period from
1978 through 2002 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  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   I 05  II 05 III 05
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    1.6    2.7    4.2    1.6    2.7    2.2    2.4     .2    1.7    3.7    7.2    3.6    4.3    3.5    4.0    3.3    3.8    3.3    3.8

Personal consumption expenditures...    2.7    2.9    3.9    7.0    1.4    2.4    2.3    1.4    2.5    3.6    5.8    3.1    4.7    1.9    4.4    4.3    3.5    3.4    3.9
  Durable goods.....................    7.1    6.6    6.0   37.4   -4.2    3.6   11.5   -5.2    3.6   15.1   19.8    -.3    4.4     .4   10.8    5.5    2.6    7.9   10.8
  Nondurable goods..................    2.5    3.2    4.7    4.9    3.3    1.3     .3    3.6    3.2    1.9    8.3    3.1    6.6    2.6    3.9    5.5    5.3    3.6    2.6
  Services..........................    1.9    2.0    3.0    2.3    1.8    2.6    1.3    1.8    1.9    2.3    2.0    3.8    3.8    1.8    3.4    3.6    2.8    2.3    3.2

Gross private domestic investment...   -2.6    3.9   11.9  -22.7   13.6    1.9    5.8   -1.0    -.4    2.7   17.5   12.0   10.1   20.9    4.6    6.8    8.6   -3.7    2.3
  Fixed investment..................   -5.2    3.6    9.7  -10.6   -6.3   -1.4    -.7   -1.4     .8    8.8   14.8    6.9    6.9   15.1    8.4    7.2    7.0    9.5    5.7
    Nonresidential..................   -9.2    1.3    9.4  -13.3  -12.8   -6.1   -2.0   -5.0   -1.1    8.4   11.2    4.4    7.9   13.5   11.8   10.4    5.7    8.8    6.2
      Structures....................  -17.1   -4.2    2.2  -33.2  -19.0  -19.0  -15.5   -5.3   -8.4   13.3    -.1    1.3   -3.5    8.8    1.4    4.7   -2.0    2.7   -1.4
      Equipment and software........   -6.2    3.2   11.9   -4.2  -10.4    -.9    3.3   -4.9    1.6    6.7   15.4    5.5   12.0   15.2   15.5   12.4    8.3   10.9    8.9
    Residential.....................    4.8    8.4   10.3   -3.7   10.4    9.5    2.0    6.4    4.7    9.6   21.9   11.5    5.2   17.8    2.6    1.6    9.5   10.8    4.8
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................   -2.3    1.8    8.4  -10.8    5.2   10.6    2.9   -3.1   -2.9   -2.1   11.5   19.1    5.0    6.9    5.5    7.1    7.5   10.7     .8
    Goods...........................   -4.0    1.8    8.9   -8.8   -1.6   14.2    2.2   -9.1    1.5     .0    9.1   17.2    7.5    7.9    8.2    3.7    5.3   16.0    2.8
    Services........................    1.9    1.7    7.4  -15.3   22.9    2.7    4.6   11.7  -11.9   -6.6   17.2   23.7    -.4    4.8    -.6   15.5   12.5    -.4   -3.9
  Imports...........................    3.4    4.6   10.7   -3.4   11.7   12.5    5.7    9.0   -2.5    3.3    4.1   16.5   12.0   14.5    4.7   11.3    7.4    -.3     .0
    Goods...........................    3.7    4.9   11.0   -2.0    9.2   16.0    6.5    8.1   -2.6    6.3     .9   17.7   12.4   14.7    4.7   13.0    8.2   -1.1    1.1
    Services........................    2.1    3.0    9.6  -10.4   24.7   -3.0    1.7   14.0   -2.2  -10.2   21.4   10.7   10.0   13.7    4.6    3.1    3.7    4.4   -5.8

Government consumption expenditures
 and gross investment...............    4.4    2.8    2.2    8.5    4.3    4.8    2.3    4.8    -.3    7.2     .5     .5    3.3    2.3    1.8     .9    1.9    2.5    3.2
  Federal...........................    7.0    6.9    5.2    8.8    5.9   12.5    3.0   10.2     .3   22.1   -2.0    3.1   10.7    3.2    3.6    -.6    2.4    2.4    7.7
    National defense................    7.4    8.8    7.0   12.5    3.7   11.5    4.1   14.8   -3.6   37.4   -6.5    7.9   13.8     .8    9.0   -3.3    3.0    3.7   10.2
    Nondefense......................    6.3    3.4    1.8    2.3   10.2   14.1    1.2    2.1    8.0   -2.4    7.2   -5.8    4.9    8.1   -6.4    5.2    1.1    -.2    2.6
  State and local...................    3.1     .6     .4    8.4    3.5    1.0    1.9    2.0    -.6    -.3    2.0    -.9    -.7    1.8     .8    1.8    1.6    2.6     .7

Addenda:
  Final sales of domestic product...    1.2    2.7    3.9    3.8    -.2    1.7    1.4     .1    1.9    4.6    6.9    2.8    3.8    2.6    4.6    3.3    3.5    5.6    4.4
  Gross domestic purchases..........    2.2    3.0    4.7    2.2    3.6    2.7    2.8    1.7    1.5    4.2    6.5    3.9    5.2    4.7    3.9    4.1    4.0    2.1    3.5
  Final sales to domestic
   purchasers.......................    1.8    3.0    4.4    4.3     .7    2.2    1.8    1.6    1.7    5.0    6.1    3.2    4.8    3.8    4.5    4.1    3.7    4.2    4.1
  Gross national product (GNP)......    1.5    3.0    4.0    3.9     .8    1.8    2.9    1.0    1.5    4.5    7.2    4.5    3.8    2.2    4.0    2.9    3.9    3.2  .....
  Disposable personal income........    3.1    2.4    3.4   -5.6   11.6    1.9   -1.6     .2    2.5    4.5    7.2    1.0    3.6    1.2    2.8    9.1   -3.4    1.5    -.9

  Current-dollar measures:
    GDP.............................    3.4    4.8    7.0    3.6    4.3    3.7    3.9    2.4    4.8    4.8    9.3    5.5    8.1    7.5    5.3    6.1    7.0    6.0    7.0
    Final sales of domestic product.    2.9    4.8    6.6    5.5    1.4    3.2    3.0    2.4    5.1    5.7    8.8    4.8    7.5    6.6    6.1    6.2    6.7    8.3    7.7
    Gross domestic purchases........    3.8    5.3    7.7    3.1    4.9    5.2    4.4    3.9    5.7    4.6    8.6    5.6    9.7    9.0    5.9    7.4    7.0    5.5    7.6
    Final sales to domestic
     purchasers.....................    3.4    5.3    7.4    4.9    2.2    4.8    3.6    3.8    5.9    5.4    8.2    4.9    9.2    8.1    6.6    7.4    6.7    7.6    8.3
    GNP.............................    3.2    5.1    6.8    6.0    2.3    3.3    4.4    3.2    4.6    5.7    9.2    6.4    7.7    6.1    5.4    5.7    7.0    5.9  .....
    Disposable personal income......    4.6    4.3    6.1   -5.0   12.6    4.7     .2    1.9    5.6    5.2    9.4    2.3    7.6    5.1    4.3   12.5   -1.3    4.9    2.8
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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  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   I 05  II 05 III 05
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

    Gross domestic product..........    1.6    2.7    4.2    1.6    2.7    2.2    2.4     .2    1.7    3.7    7.2    3.6    4.3    3.5    4.0    3.3    3.8    3.3    3.8

Percentage points at annual rates:

  Personal consumption expenditures.   1.90   2.05   2.71   4.71   1.01   1.64   1.57    .97   1.70   2.55   4.13   2.15   3.27   1.33   3.05   3.01   2.44   2.35   2.73

    Durable goods...................    .61    .57    .51   2.81   -.39    .31    .98   -.47    .31   1.23   1.64   -.03    .38    .03    .88    .45    .22    .64    .87
      Motor vehicles and parts......    .23    .19    .06   2.24  -1.07    .02    .89   -.75    .22    .53    .77   -.43   -.02   -.19    .44    .11   -.31    .27    .62
      Furniture and household
       equipment....................    .29    .26    .34    .39    .50    .23    .06    .21    .03    .48    .63    .30    .31    .24    .34    .21    .32    .17    .35
      Other.........................    .09    .11    .10    .18    .18    .07    .02    .07    .06    .22    .23    .10    .08   -.02    .10    .14    .20    .20   -.09

    Nondurable goods................    .50    .63    .94    .95    .65    .26    .06    .70    .63    .37   1.65    .61   1.31    .53    .78   1.09   1.07    .74    .54
      Food..........................    .15    .25    .48    .18    .21    .18    .00    .20    .38    .05    .69    .20    .88    .27    .32    .63    .50    .42    .53
      Clothing and shoes............    .14    .14    .17    .27    .23    .04   -.05    .31   -.04    .27    .33    .04    .37   -.09    .17    .25    .15    .20    .05
      Gasoline, fuel oil, and other
       energy goods.................    .04    .01    .03    .24   -.06    .06    .04   -.04   -.01   -.04    .12    .07   -.04    .03    .02    .07    .21   -.11   -.16
      Other.........................    .18    .22    .26    .27    .27   -.01    .07    .23    .29    .09    .51    .31    .11    .33    .28    .14    .20    .23    .12

    Services........................    .79    .85   1.27    .95    .75   1.07    .54    .74    .76    .94    .84   1.57   1.58    .77   1.39   1.47   1.15    .97   1.32
      Housing.......................    .09    .07    .30    .26    .06   -.03   -.11   -.07    .08    .13    .24    .31    .39    .27    .29    .29    .23    .22    .20
      Household operation...........    .02    .05    .07   -.15    .07    .29   -.11    .19    .01   -.06   -.02    .25    .07   -.07    .04    .34    .07   -.02    .10
        Electricity and gas.........    .04    .02    .03   -.07    .11    .25   -.07    .23   -.05   -.13   -.07    .22    .02   -.11   -.05    .37    .02   -.08    .06
        Other household operation...   -.02    .03    .05   -.08   -.05    .04   -.04   -.04    .07    .07    .05    .03    .05    .05    .10   -.03    .05    .06    .04
      Transportation................   -.08    .00    .03   -.17    .01   -.04   -.07   -.01    .07   -.05    .02    .02    .13   -.01    .00   -.01    .06    .06    .05
      Medical care..................    .63    .49    .49    .67    .59    .67    .59    .59    .45    .42    .31    .59    .37    .56    .64    .54    .53    .50    .67
      Recreation....................    .06    .10    .11    .07    .09    .07    .04    .16    .04    .15    .07    .21    .17    .00    .10    .02    .14    .02    .01
      Other.........................    .06    .14    .26    .28   -.08    .12    .20   -.12    .10    .35    .22    .19    .44    .02    .33    .29    .11    .18    .30

  Gross private domestic investment.   -.41    .58   1.82  -3.95   1.92    .30    .87   -.14   -.03    .42   2.53   1.78   1.52   3.10    .75   1.11   1.42   -.63    .38

    Fixed investment................   -.84    .54   1.47  -1.81  -1.04   -.23   -.12   -.21    .13   1.26   2.15   1.03   1.04   2.22   1.31   1.13   1.12   1.51    .93
      Nonresidential................  -1.06    .13    .92  -1.63  -1.50   -.66   -.21   -.52   -.10    .79   1.08    .43    .76   1.29   1.15   1.04    .58    .90    .65
        Structures..................   -.55   -.11    .06  -1.27   -.60   -.58   -.44   -.14   -.22    .32    .00    .03   -.09    .22    .04    .12   -.05    .07   -.04
        Equipment and software......   -.51    .24    .86   -.35   -.90   -.09    .23   -.38    .12    .47   1.09    .40    .85   1.07   1.12    .92    .64    .83    .69
          Information processing
           equipment and software...   -.20    .19    .49   -.21   -.28    .06    .23   -.38    .21    .20    .79    .52    .61    .38    .31    .34    .72    .53    .49
            Computers and peripheral
             equipment..............    .04    .09    .19    .19    .15   -.06    .16   -.04    .07    .10    .21    .17    .20    .18    .16    .27    .31    .23    .10
            Software................   -.04    .06    .11   -.19   -.04    .15    .12   -.17    .04    .04    .29    .15    .08    .05    .10    .09    .22    .29    .19
            Other...................   -.19    .05    .19   -.21   -.38   -.03   -.05   -.17    .10    .05    .29    .20    .33    .16    .05   -.02    .18    .01    .20
          Industrial equipment......   -.11    .00    .04   -.21    .01   -.12    .08    .01    .15   -.12   -.04   -.14    .19   -.05    .30    .06    .23   -.27    .24
          Transportation equipment..   -.16   -.03    .15    .26   -.53   -.16   -.07   -.02   -.25    .36    .01   -.16   -.04    .56    .23    .39   -.16    .33    .00
          Other equipment...........   -.04    .08    .18   -.19   -.10    .14    .00    .02    .01    .04    .33    .18    .09    .18    .28    .13   -.14    .23   -.04
      Residential...................    .22    .41    .55   -.18    .46    .43    .09    .30    .23    .47   1.07    .59    .28    .93    .15    .09    .54    .62    .28

    Change in private inventories...    .43    .05    .35  -2.14   2.95    .53    .98    .08   -.16   -.84    .38    .75    .48    .87   -.56   -.03    .29  -2.14   -.55
      Farm..........................   -.02    .03    .03   -.23    .24   -.39    .31    .03    .17   -.21   -.07    .19   -.20    .45   -.01   -.28   -.11   -.09   -.08
      Nonfarm.......................    .45    .02    .32  -1.91   2.71    .92    .67    .04   -.33   -.63    .45    .57    .68    .42   -.55    .25    .40  -2.05   -.48

  Net exports of goods and services.   -.69   -.46   -.73   -.66   -.97   -.62   -.49  -1.52    .08   -.66    .48   -.47  -1.16  -1.37   -.17   -.98   -.40   1.11    .08

    Exports.........................   -.23    .17    .80  -1.11    .47    .96    .27   -.31   -.29   -.20   1.04   1.69    .49    .67    .53    .70    .74   1.07    .08
      Goods.........................   -.28    .12    .59   -.63   -.11    .88    .14   -.64    .09    .00    .58   1.05    .50    .53    .55    .25    .37   1.08    .21
      Services......................    .06    .05    .22   -.48    .59    .08    .13    .33   -.38   -.20    .46    .64   -.01    .14   -.02    .44    .37   -.01   -.13

    Imports.........................   -.46   -.63  -1.53    .45  -1.44  -1.58   -.76  -1.21    .37   -.46   -.56  -2.16  -1.65  -2.03   -.70  -1.68  -1.14    .04    .00
      Goods.........................   -.41   -.56  -1.30    .21   -.95  -1.65   -.72   -.90    .32   -.71   -.10  -1.91  -1.41  -1.71   -.59  -1.60  -1.05    .15   -.15
      Services......................   -.05   -.07   -.23    .25   -.48    .07   -.04   -.31    .05    .26   -.46   -.25   -.23   -.32   -.11   -.08   -.10   -.11    .16

  Government consumption expenditures
   and gross investment.............    .80    .53    .41   1.48    .79    .88    .43    .89   -.05   1.37    .11    .10    .62    .43    .35    .17    .35    .47    .61

    Federal.........................    .43    .45    .36    .51    .36    .76    .20    .64    .03   1.40   -.14    .21    .71    .22    .25   -.04    .17    .17    .53
      National defense..............    .29    .37    .32    .46    .14    .45    .17    .59   -.15   1.46   -.31    .35    .60    .04    .41   -.16    .14    .17    .47
        Consumption expenditures....    .23    .33    .26    .45    .13    .29    .07    .67   -.19   1.35   -.34    .32    .46    .01    .39   -.26    .34    .04    .37
        Gross investment............    .06    .04    .06    .02    .01    .16    .10   -.08    .04    .11    .03    .03    .14    .02    .02    .10   -.20    .13    .11
      Nondefense....................    .14    .08    .04    .05    .22    .31    .03    .05    .18   -.06    .17   -.14    .11    .19   -.16    .12    .03   -.01    .06
       Consumption expenditures.....    .12    .08    .04    .04    .14    .21    .11    .07    .18   -.19    .29   -.10    .11    .04   -.04    .08    .02   -.09    .08
       Gross investment.............    .02    .00    .00    .01    .07    .10   -.08   -.02    .00    .14   -.12   -.04    .00    .15   -.12    .04    .01    .08   -.02

    State and local.................    .37    .08    .05    .97    .43    .12    .23    .25   -.08   -.04    .25   -.11   -.09    .21    .10    .21    .19    .31    .08
        Consumption expenditures....    .29    .06    .04    .38    .30    .24    .17    .15   -.02   -.01   -.01    .02    .00    .07    .14    .16    .08    .08    .18
        Gross investment............    .08    .02    .01    .59    .12   -.12    .06    .10   -.07   -.03    .26   -.13   -.08    .14   -.04    .05    .11    .23   -.10

Addenda:
    Goods...........................    .41   1.10   2.06    .88   1.30    .49   1.69  -1.74   1.38    .75   5.19    .96   2.29   1.53   2.10   1.26   1.41   1.58   1.69
    Services........................   1.43   1.30   1.59   1.58   1.43   1.95    .98   1.65    .41   2.15    .78   2.20   1.90    .71   1.75   1.82   1.86    .88   1.98
    Structures......................   -.24    .31    .57   -.87    .01   -.26   -.29    .29   -.08    .76   1.28    .41    .06   1.26    .13    .23    .53    .85    .14
    Motor vehicle output............    .39    .14    .16    .69    .53    .20    .40    .01    .00   -.09    .72   -.13    .49   -.26    .11    .29    .15   -.01    .48
    Final sales of computers........    .03    .15    .15    .19   -.06    .01    .20    .11    .05    .10    .45    .09    .08    .08    .10    .36    .37    .32    .11
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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   III 04    IV 04     I 05    II 05   III 05     2004   III 04    IV 04     I 05    II 05   III 05     2004    II 05   III 05
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 11,734.3 11,818.8 11,995.2 12,198.8 12,378.0 12,589.6 10,755.7 10,808.9 10,897.1 10,999.3 11,089.2 11,193.2    435.1     89.9    104.0

Personal consumption expenditures.  8,214.3  8,263.2  8,416.1  8,535.8  8,677.0  8,840.0  7,588.6  7,617.5  7,698.8  7,764.9  7,829.5  7,904.7    282.0     64.6     75.2

  Durable goods...................    987.8    993.8  1,008.6  1,017.3  1,035.5  1,054.1  1,089.9  1,100.4  1,115.1  1,122.3  1,143.9  1,173.5     61.4     21.6     29.6
    Motor vehicles and parts......    441.8    444.9    452.8    449.6    458.5    473.7    457.0    461.4    464.6    455.0    463.3    482.5      7.3      8.3     19.2
    Furniture and household
     equipment....................    354.1    356.9    360.6    366.9    370.0    374.3    442.9    449.2    456.8    469.2    475.9    489.7     46.6      6.7     13.8
    Other.........................    191.9    192.0    195.2    200.8    207.0    206.2    195.8    196.0    200.2    206.5    212.9    209.9     11.3      6.4     -3.0

  Nondurable goods................  2,368.3  2,378.4  2,437.1  2,476.6  2,533.7  2,599.1  2,200.4  2,206.9  2,236.5  2,265.6  2,285.9  2,300.6     98.6     20.3     14.7
    Food..........................  1,134.7  1,141.0  1,166.4  1,184.2  1,207.1  1,227.5  1,029.1  1,030.9  1,047.4  1,060.9  1,072.2  1,086.7     49.0     11.3     14.5
    Clothing and shoes............    329.0    328.3    335.2    340.5    344.9    342.8    355.0    354.9    363.0    367.9    374.4    376.1     20.9      6.5      1.7
    Gasoline, fuel oil, and other
     energy goods.................    249.9    249.3    267.9    275.2    296.4    336.5    201.4    201.3    203.0    207.7    205.2    202.0      2.7     -2.5     -3.2
    Other.........................    654.8    659.9    667.6    676.8    685.3    692.2    616.7    621.7    625.5    631.2    637.7    641.0     27.1      6.5      3.3

  Services........................  4,858.2  4,891.0  4,970.4  5,041.8  5,107.8  5,186.8  4,310.9  4,324.0  4,362.1  4,392.0  4,417.6  4,452.5    127.0     25.6     34.9
    Housing.......................  1,221.1  1,230.0  1,244.7  1,260.6  1,275.3  1,288.2  1,078.4  1,081.9  1,089.5  1,095.6  1,101.4  1,106.6     30.0      5.8      5.2
    Household operation...........    446.2    445.9    457.9    465.3    471.4    482.0    405.6    403.5    412.4    414.3    413.8    416.5      7.4      -.5      2.7
      Electricity and gas.........    175.9    173.2    185.9    189.5    192.4    200.8    149.2    145.6    154.7    155.2    153.2    154.6      2.4     -2.0      1.4
      Other household operation...    270.2    272.8    272.1    275.8    279.0    281.1    256.3    258.2    257.3    258.8    260.5    261.7      5.0      1.7      1.2
    Transportation................    306.9    308.0    309.2    312.3    318.5    324.2    283.4    283.4    283.0    284.6    286.3    287.6      3.3      1.7      1.3
    Medical care..................  1,401.1  1,415.4  1,441.6  1,470.5  1,492.6  1,524.8  1,233.5  1,241.6  1,255.4  1,269.1  1,282.3  1,299.9     48.6     13.2     17.6
    Recreation....................    338.8    341.0    344.3    350.3    353.1    356.2    302.4    303.6    304.1    307.7    308.3    308.5     11.3       .6       .2
    Other.........................  1,144.1  1,150.7  1,172.6  1,182.8  1,196.8  1,211.4  1,006.7  1,009.0  1,016.6  1,019.5  1,024.3  1,032.1     26.0      4.8      7.8

Gross private domestic investment.  1,928.1  1,961.2  2,004.5  2,058.5  2,054.4  2,078.6  1,809.8  1,833.4  1,863.9  1,902.9  1,885.0  1,895.6    192.4    -17.9     10.6

  Fixed investment................  1,872.6  1,908.7  1,952.6  1,998.7  2,058.5  2,102.2  1,755.1  1,780.2  1,811.3  1,842.2  1,884.7  1,911.0    155.1     42.5     26.3
    Nonresidential................  1,198.8  1,219.0  1,252.9  1,280.1  1,313.5  1,340.7  1,186.7  1,204.8  1,235.1  1,252.2  1,279.0  1,298.4    101.7     26.8     19.4
      Structures..................    298.4    302.1    309.8    315.9    325.6    335.4    248.4    249.4    252.3    251.0    252.7    251.8      5.3      1.7      -.9
      Equipment and software......    900.4    916.9    943.1    964.3    987.9  1,005.3    947.6    965.6    994.2  1,014.2  1,040.9  1,063.3    100.8     26.7     22.4
        Information processing
         equipment and software...    447.0    450.9    456.3    474.6    486.6    497.3    522.4    527.9    539.7    565.1    584.6    603.1     62.7     19.5     18.5
          Computers and peripheral
           equipment..............     91.6     92.3     97.5    102.7    105.6    105.0    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    178.5    179.9    181.1    188.3    197.3    202.9    188.8    190.0    192.8    199.8    209.1    215.5     13.1      9.3      6.4
          Other...................    176.9    178.6    177.8    183.6    183.6    189.4    188.9    191.1    190.3    196.3    196.5    203.2     22.7       .2      6.7
        Industrial equipment......    145.3    149.3    152.6    161.3    154.9    162.6    139.4    142.8    144.5    150.9    143.2    150.0      4.5     -7.7      6.8
        Transportation equipment..    151.9    155.6    168.4    163.8    172.8    172.2    138.7    142.8    153.3    148.8    158.1    158.0     15.6      9.3      -.1
        Other equipment...........    156.2    161.0    165.8    164.6    173.7    173.1    150.0    154.3    158.0    153.9    160.6    159.3     19.3      6.7     -1.3
    Residential...................    673.8    689.7    699.7    718.5    745.0    761.5    561.8    568.8    571.0    584.1    599.3    606.3     52.4     15.2      7.0

  Change in private inventories...     55.4     52.5     51.9     59.9     -4.2    -23.6     52.0     50.4     50.1     58.2     -1.7    -16.6     36.5    -59.9    -14.9
    Farm..........................      3.2      7.0     -3.0     -6.5     -8.5    -11.3      2.3      6.3      -.2     -2.3     -4.2     -5.9      2.1     -1.9     -1.7
    Nonfarm.......................     52.2     45.4     54.8     66.4      4.3    -12.3     49.9     43.7     50.8     61.8      3.4     -9.8     34.4    -58.4    -13.2

Net exports of goods and services.   -624.0   -638.0   -685.4   -697.5   -691.0   -721.7   -601.3   -606.5   -634.1   -645.4   -614.2   -611.8    -79.9     31.2      2.4

  Exports.........................  1,173.8  1,183.8  1,217.1  1,253.2  1,297.1  1,311.1  1,117.9  1,125.0  1,144.5  1,165.3  1,195.4  1,197.6     86.7     30.1      2.2
    Goods.........................    818.1    829.7    845.0    865.4    904.7    915.1    783.6    793.1    800.3    810.7    841.3    847.2     63.9     30.6      5.9
    Services......................    355.7    354.1    372.1    387.7    392.5    396.0    334.1    331.8    344.0    354.3    353.9    350.4     22.9      -.4     -3.5

  Imports.........................  1,797.8  1,821.8  1,902.5  1,950.6  1,988.1  2,032.8  1,719.2  1,731.5  1,778.6  1,810.7  1,809.6  1,809.4    166.6     -1.1      -.2
    Goods.........................  1,495.9  1,515.0  1,588.4  1,627.6  1,661.8  1,706.7  1,452.7  1,461.9  1,507.3  1,537.3  1,532.9  1,537.2    143.5     -4.4      4.3
    Services......................    301.9    306.8    314.1    323.0    326.3    326.1    267.1    270.2    272.3    274.8    277.7    273.6     23.4      2.9     -4.1

Government consumption expenditures
 and gross investment.............  2,215.9  2,232.5  2,260.0  2,302.0  2,337.6  2,392.7  1,952.3  1,958.4  1,962.8  1,971.9  1,984.1  1,999.9     41.2     12.2     15.8

  Federal.........................    827.6    836.5    840.8    860.2    869.8    892.8    723.7    728.6    727.6    731.8    736.1    749.9     35.9      4.3     13.8
    National defense..............    552.7    562.9    562.0    575.3    582.5    602.3    481.3    487.7    483.7    487.3    491.7    503.9     31.6      4.4     12.2
      Consumption expenditures....    484.2    494.6    490.1    508.9    512.3    528.7    413.3    419.8    413.4    421.9    422.9    432.1     24.8      1.0      9.2
      Gross investment............     68.5     68.3     71.9     66.4     70.2     73.5     68.5     68.2     71.2     65.3     69.2     72.4      7.2      3.9      3.2
    Nondefense....................    274.9    273.6    278.8    285.0    287.3    290.6    242.2    240.6    243.6    244.3    244.2    245.7      4.2      -.1      1.5
      Consumption expenditures....    241.4    241.1    245.1    250.7    250.5    254.4    208.6    207.9    209.9    210.4    208.2    210.3      3.8     -2.2      2.1
      Gross investment............     33.4     32.5     33.8     34.3     36.8     36.2     33.4     32.5     33.6     33.8     36.3     35.6       .3      2.5      -.7

  State and local.................  1,388.3  1,395.9  1,419.1  1,441.7  1,467.7  1,499.9  1,228.4  1,229.6  1,235.0  1,239.8  1,247.8  1,249.8      5.1      8.0      2.0
      Consumption expenditures....  1,117.7  1,123.9  1,143.1  1,159.0  1,175.7  1,204.1    979.5    980.7    984.8    986.8    988.8    993.3      4.3      2.0      4.5
      Gross investment............    270.6    272.1    276.1    282.7    292.0    295.8    248.9    249.0    250.3    253.2    259.4    256.7       .7      6.2     -2.7

Residual..........................    .....    .....    .....    .....    .....    .....    -26.8    -28.8    -37.5    -48.0    -60.1    -70.7    .....    .....    .....

Addenda:
  Final sales of domestic product. 11,678.9 11,766.3 11,943.3 12,138.9 12,382.1 12,613.2 10,702.4 10,757.1 10,846.0 10,940.3 11,089.2 11,208.5    398.8    148.9    119.3
  Gross domestic purchases........ 12,358.3 12,456.8 12,680.6 12,896.3 13,069.0 13,311.4 11,348.7 11,407.0 11,522.0 11,635.4 11,694.8 11,796.4    511.4     59.4    101.6
  Final sales to domestic
   purchasers..................... 12,302.9 12,404.4 12,628.7 12,836.4 13,073.1 13,334.9 11,295.3 11,354.9 11,470.7 11,576.2 11,694.6 11,811.5    475.2    118.4    116.9

  Gross domestic product.......... 11,734.3 11,818.8 11,995.2 12,198.8 12,378.0 12,589.6 10,755.7 10,808.9 10,897.1 10,999.3 11,089.2 11,193.2    435.1     89.9    104.0
  Plus: Income receipts from
   the rest of the world..........    415.4    418.1    462.4    462.3    489.4    .....    383.7    385.3    423.2    420.4    441.7    .....     58.5     21.3    .....
  Less: Income payments to
   the rest of the world..........    361.7    369.6    425.6    422.9    453.9    .....    333.5    340.0    388.5    383.3    408.2    .....     73.0     24.9    .....
  Equals: Gross national product.. 11,788.0 11,867.3 12,032.0 12,238.2 12,413.5    ..... 10,805.7 10,854.1 10,931.8 11,036.3 11,122.5    .....    420.5     86.2    .....

  Net domestic product............ 10,299.0 10,284.7 10,553.2 10,750.4 10,920.7 10,799.3  9,365.5  9,332.7  9,514.2  9,608.3  9,689.7  9,507.3    364.5     81.4   -182.4
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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  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   I 05  II 05 III 05
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    1.7    2.0    2.6    1.7    1.7    1.5    1.6    2.2    3.1    1.1    1.8    1.9    3.6    3.9    1.5    2.7    3.1    2.6    3.1

Personal consumption expenditures...    1.4    1.9    2.6     .6     .9    2.8    1.8    1.7    3.0     .6    2.0    1.3    3.9    3.8    1.5    3.1    2.3    3.3    3.7
  Durable goods.....................   -2.4   -3.5   -1.9   -1.6   -3.2   -1.9   -1.8   -2.7   -4.3   -4.3   -4.4   -4.1     .1    -.1   -2.4     .6     .9    -.5   -3.0
  Nondurable goods..................     .5    2.0    3.3   -4.0     .2    5.4     .9    1.2    5.6   -2.4    3.1     .6    6.0    6.6     .1    4.5    1.3    5.7    7.9
  Services..........................    2.7    3.0    3.2    3.3    2.2    2.6    3.0    2.8    3.4    3.2    2.8    2.8    3.6    3.3    2.9    3.0    3.0    2.9    3.0

Gross private domestic investment...     .6    1.6    3.1     .2    -.2     .5     .2    2.9    2.9    -.5    1.7    3.7    3.4    4.6    3.2    2.3    2.6    2.7    2.7
  Fixed investment..................     .6    1.7    3.2     .1    -.3     .5     .2    3.0    3.1    -.5    1.7    3.9    3.5    4.6    3.0    2.2    2.6    2.7    2.9
    Nonresidential..................    -.2     .3    1.3   -1.0    -.1    -.2    -.4    1.1     .1   -1.0    1.2    1.9    1.2    1.8     .9    1.1    3.1    1.9    2.2
      Structures....................    4.4    3.5    5.5    2.1    3.8    5.2    4.3    5.1    4.0     .3    2.9    4.6    7.1    6.8    6.6    5.6   10.3    9.9   14.3
      Equipment and software........   -1.8    -.9    -.1   -2.2   -1.5   -2.1   -2.0    -.3   -1.2   -1.4     .6    1.0    -.8     .2    -.9    -.4     .9    -.7   -1.5
    Residential.....................    2.5    4.8    6.7    2.8    -.8    2.2    1.5    7.0    9.3     .3    2.7    7.6    8.0    9.7    6.9    4.2    1.6    4.3    4.2
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    -.4    2.1    3.6   -3.5   -1.1    2.8    3.0     .6    4.1    1.0     .9    2.9    5.9    4.8    1.7    4.3    4.6    3.7    3.6
    Goods...........................    -.7    2.0    3.7   -3.8   -1.4    2.2    3.3     .5    3.6    1.6    -.7    4.1    6.5    5.3    1.0    3.8    4.5    2.9    1.8
    Services........................     .4    2.5    3.1   -2.8    -.3    4.3    2.1     .7    5.2    -.3    4.6     .1    4.4    3.7    3.2    5.6    4.7    5.4    7.9
  Imports...........................   -1.2    3.4    5.0  -10.0   -1.7   10.3    3.5     .6   11.2   -4.4    2.6    1.1    9.6    6.6    5.7    6.8    2.9    8.2    9.3
    Goods...........................   -1.8    2.9    5.0  -11.3   -2.0   10.8    2.6     .4   11.9   -6.7    2.5     .5   10.1    7.9    5.4    6.9    1.9    9.9   10.0
    Services........................    1.7    5.8    4.9   -3.3    -.3    7.6    8.1    1.4    8.0    7.5    3.2    4.2    7.5     .3    7.4    6.5    7.9    -.2    5.8

Government consumption expenditures
 and gross investment...............    2.9    3.7    3.7    1.1    5.2    2.9    2.6    3.6    8.9     .0    2.5    1.4    6.2    5.0    3.2    4.1    5.7    3.7    6.3
  Federal...........................    3.7    3.9    4.2    1.8   10.1     .5    1.0    4.6    9.9    1.3    1.2    1.2    9.7    4.9    2.2    2.6    7.0    2.1    3.1
    National defense................    3.7    4.4    4.0     .8    9.1    1.3    2.4    6.9    9.3    1.1    1.3    1.5    7.8    5.6    2.8    2.7    6.6    1.4    3.6
    Nondefense......................    3.5    3.0    4.6    3.4   12.0    -.8   -1.4     .5   11.0    1.6    1.0     .7   13.7    3.6    1.2    2.5    7.9    3.6    1.9
  State and local...................    2.5    3.7    3.4     .8    2.7    4.2    3.4    3.0    8.4    -.7    3.2    1.6    4.2    5.0    3.7    4.9    4.9    4.7    8.3

Addenda:
  Final sales of domestic product...    1.7    2.0    2.6    1.7    1.7    1.5    1.6    2.3    3.1    1.1    1.8    1.9    3.6    3.8    1.4    2.7    3.1    2.6    3.2
  Gross domestic purchases..........    1.6    2.2    2.9     .6    1.5    2.5    1.7    2.2    4.1     .4    2.0    1.7    4.2    4.1    2.0    3.2    2.9    3.3    4.0
  Final sales to domestic
   purchasers.......................    1.6    2.2    2.9     .6    1.5    2.5    1.7    2.2    4.1     .4    2.0    1.7    4.2    4.1    2.0    3.2    2.9    3.3    4.0
  Gross national product (GNP)......    1.7    2.0    2.6    1.7    1.7    1.5    1.6    2.2    3.1    1.1    1.8    1.9    3.6    3.8    1.5    2.7    3.1    2.6  .....

  Implicit price deflators:
    GDP.............................    1.7    2.0    2.6    2.0    1.5    1.4    1.5    2.2    3.1    1.1    1.9    1.8    3.7    3.9    1.3    2.7    3.0    2.6    3.1
    Gross domestic purchases........    1.6    2.2    2.9     .9    1.3    2.4    1.6    2.2    4.1     .4    2.1    1.6    4.3    4.1    1.9    3.2    2.9    3.3    4.0
    GNP.............................    1.7    2.0    2.6    2.0    1.4    1.5    1.5    2.3    3.1    1.1    1.9    1.8    3.7    3.8    1.3    2.7    3.0    2.6  .....
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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     III 04      IV 04       I 05      II 05     III 05
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    102.362    105.130    109.562    110.104    111.003    112.044    112.959    114.019

Personal consumption expenditures..........    105.340    108.416    112.601    113.030    114.236    115.217    116.176    117.291
  Durable goods............................    111.752    119.134    126.245    127.463    129.166    129.999    132.499    135.926
  Nondurable goods.........................    104.614    107.938    113.000    113.337    114.857    116.351    117.392    118.147
  Services.................................    104.366    106.493    109.725    110.059    111.027    111.789    112.440    113.329

Gross private domestic investment..........     89.724     93.195    104.286    105.644    107.398    109.645    108.615    109.225
  Fixed investment.........................     91.997     95.297    104.534    106.027    107.880    109.722    112.252    113.819
    Nonresidential.........................     86.969     88.063     96.314     97.790    100.246    101.633    103.806    105.387
      Structures...........................     81.029     77.621     79.314     79.635     80.554     80.145     80.680     80.390
      Equipment and software...............     89.265     92.154    103.126    105.087    108.201    110.376    113.274    115.715
    Residential............................    105.149    113.989    125.714    127.267    127.772    130.695    134.100    135.673
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     92.430     94.064    101.970    102.622    104.398    106.295    109.037    109.242

Imports of goods and services..............    100.601    105.205    116.495    117.328    120.518    122.698    122.620    122.611

Government consumption expenditures and
 gross investment..........................    107.969    111.009    113.398    113.753    114.008    114.537    115.248    116.166
  Federal..................................    111.169    118.839    125.038    125.881    125.704    126.446    127.188    129.563
  State and local..........................    106.354    107.042    107.487    107.592    108.069    108.489    109.183    109.364

Addenda:
  Final sales of domestic product..........    102.828    105.564    109.650    110.211    111.122    112.088    113.613    114.836
  Gross domestic purchases.................    103.151    106.285    111.301    111.872    113.000    114.112    114.695    115.691
  Final sales to domestic purchasers.......    103.603    106.708    111.394    111.982    113.124    114.164    115.332    116.485
  Gross national product...................    102.264    105.370    109.637    110.128    110.916    111.977    112.851      .....
-----------------------------------------------------------------------------------------------------------------------------------
  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     III 04      IV 04       I 05      II 05     III 05
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    104.193    106.310    109.102    109.371    110.111    110.950    111.655    112.516

Personal consumption expenditures
 (PCE).....................................    103.542    105.520    108.246    108.484    109.326    109.936    110.832    111.841
  Durable goods............................     95.766     92.372     90.631     90.310     90.449     90.648     90.527     89.830
  Nondurable goods.........................    102.089    104.151    107.634    107.781    108.982    109.327    110.854    112.987
  Services.................................    106.018    109.246    112.695    113.120    113.955    114.803    115.633    116.500

Gross private domestic investment..........    101.640    103.311    106.555    107.120    107.733    108.427    109.164    109.884
  Fixed investment.........................    101.660    103.432    106.697    107.248    107.831    108.522    109.254    110.036
    Nonresidential.........................     99.513     99.764    101.025    101.185    101.455    102.244    102.715    103.269
      Structures...........................    110.030    113.889    120.124    121.159    122.827    125.876    128.886    133.256
      Equipment and software...............     95.956     95.133     95.022     94.945     94.854     95.067     94.910     94.542
    Residential............................    107.240    112.379    119.935    121.312    122.574    123.062    124.359    125.638
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     99.273    101.398    104.999    105.242    106.366    107.559    108.534    109.498

Imports of goods and services..............     96.341     99.610    104.571    105.269    107.026    107.783    109.925    112.405

Government consumption expenditures and
 gross investment..........................    105.507    109.460    113.505    114.003    115.148    116.747    117.820    119.647
  Federal..................................    105.631    109.740    114.354    114.825    115.575    117.550    118.168    119.068
  State and local..........................    105.435    109.303    113.022    113.536    114.914    116.291    117.635    120.013

Addenda:
  PCE excluding food and energy............    103.705    105.082    107.156    107.358    107.980    108.617    109.083    109.449
  Market-based PCE\1\......................    103.082    105.009    107.422    107.627    108.378    108.948    109.860    110.925
  Market-based PCE excluding food
   and energy\1\...........................    103.153    104.348    105.898    106.050    106.514    107.106    107.506    107.814
  Final sales of domestic product..........    104.197    106.330    109.124    109.389    110.124    110.963    111.667    112.539
  Gross domestic purchases.................    103.583    105.863    108.899    109.235    110.092    110.883    111.785    112.886
  Final sales to domestic purchasers.......    103.586    105.883    108.921    109.253    110.106    110.898    111.798    112.909
  Gross national product...................    104.184    106.304    109.094    109.362    110.100    110.933    111.638      .....

  Implicit price deflators:
    Gross domestic product.................    104.187    106.305    109.099    109.343    110.077    110.905    111.622    112.476
    Final sales of domestic product........    104.197    106.330    109.124    109.382    110.117    110.956    111.659    112.532
    Gross domestic purchases...............    103.577    105.858    108.896    109.204    110.055    110.837    111.750    112.843
    Final sales to domestic purchasers.....    103.587    105.883    108.920    109.242    110.095    110.886    111.787    112.898
    Gross national product.................    104.179    106.299    109.091    109.334    110.064    110.890    111.607      .....
-----------------------------------------------------------------------------------------------------------------------------------
  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     1.6     2.7     4.2

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     2.7     2.9     3.9
  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     7.1     6.6     6.0
  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     2.5     3.2     4.7
  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     1.9     2.0     3.0

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    -2.6     3.9    11.9
  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    -5.2     3.6     9.7
    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    -9.2     1.3     9.4
      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   -17.1    -4.2     2.2
      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    -6.2     3.2    11.9
    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     8.4    10.3
  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     1.8     8.4
    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    -4.0     1.8     8.9
    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     1.9     1.7     7.4
  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     4.6    10.7
    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     4.9    11.0
    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     2.1     3.0     9.6

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     2.2
  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     7.0     6.9     5.2
    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     7.4     8.8     7.0
    Nondefense.........................     8.3     8.3     2.4     6.9     -.7    -1.2     -.4     -.7     2.6      .7     2.8     3.5     3.9     6.3     3.4     1.8
  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     3.1      .6      .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     1.2     2.7     3.9
  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     2.2     3.0     4.7
  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     1.8     3.0     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     1.5     3.0     4.0
  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     2.4     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     1.6     2.2     2.9
    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     1.9     1.8     2.4
    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     2.0     2.6
    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     2.1     1.8     2.5
    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     2.6
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                          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    I 05   II 05  III 05
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....      .2     1.0     1.3     2.2     1.9     1.6     2.0     3.2     4.0     4.7     4.6     3.8     3.8     3.6     3.6     3.6

Personal consumption expenditures
 (PCE).................................     2.8     2.8     3.1     3.2     1.9     2.1     2.4     3.3     3.8     4.3     3.9     3.5     3.8     3.5     3.9     3.8
  Durable goods........................    10.8     7.8     8.9    11.0     1.2     3.2     6.0     7.9     9.2     9.4     5.8     3.7     5.2     4.7     6.7     6.6
  Nondurable goods.....................     1.9     2.6     3.0     2.4     2.1     2.1     2.2     4.2     4.1     4.9     5.1     4.0     4.6     4.3     4.6     4.2
  Services.............................     1.6     1.8     2.0     2.0     1.9     1.9     1.8     2.0     2.5     3.0     2.9     3.2     3.1     2.9     3.0     3.0

Gross private domestic investment......   -13.8    -7.7    -5.4    -1.4     4.9     1.5     1.7     4.4     7.7    10.5    15.1    11.8    10.4    10.1     4.0     3.4
  Fixed investment.....................    -6.7    -7.6    -5.8    -4.9    -2.5     -.7     1.8     5.6     7.7     9.3    10.9     9.3     9.4     9.4     8.0     7.3
    Nonresidential.....................    -9.6   -11.7    -9.8    -8.7    -6.5    -3.5      .0     3.2     5.6     7.9     9.2     9.4    10.9    10.3     9.2     7.8
      Structures.......................   -11.1   -13.9   -17.4   -22.0   -14.9   -12.2    -4.5     -.5     1.2     2.6     1.5     1.9     2.7     3.1     1.7      .9
      Equipment and software...........    -9.0   -10.9    -6.8    -3.2    -3.4     -.3     1.6     4.4     7.2     9.8    11.9    12.0    13.8    12.8    11.7    10.1
    Residential........................     1.4     3.4     4.3     4.4     7.0     5.6     5.6    10.5    11.8    11.9    13.9     9.1     6.6     7.7     6.1     6.6
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................   -11.9    -9.5    -4.0     1.6     3.8     1.7    -1.3      .7     6.0     8.1    10.5     9.0     6.1     6.7     7.7     6.5
    Goods..............................   -13.0   -12.2    -4.9     1.1     1.1     1.9    -1.5      .2     6.7     8.3    10.4    10.1     6.8     6.2     8.2     6.8
    Services...........................    -8.9    -2.8    -2.0     2.8    10.2     1.4    -1.0     1.9     4.5     7.8    10.9     6.4     4.6     7.9     6.5     5.6
  Imports..............................    -7.6    -4.1     2.1     6.4     9.7     6.0     3.8     3.4     5.1     8.8    11.7    11.8    10.6     9.4     5.7     4.5
    Goods..............................    -7.9    -5.0     3.2     7.2     9.9     6.8     4.5     3.1     5.3     9.2    11.2    12.3    11.1    10.1     6.1     5.2
    Services...........................    -5.9      .7    -3.0     2.4     8.8     2.4      .5     5.0     4.2     7.3    13.8     9.7     7.7     6.2     3.9     1.3

Government consumption expenditures
 and gross investment..................     5.0     4.7     4.0     4.9     4.0     2.9     3.5     3.0     1.9     2.9     1.7     2.0     2.1     1.7     1.8     2.1
  Federal..............................     6.4     5.9     6.7     7.5     7.8     6.4     8.6     7.2     5.5     8.1     3.6     5.1     4.2     2.1     1.9     2.9
    National defense...................     6.5     5.6     7.4     7.9     8.4     6.5    12.2     9.2     7.5    12.1     3.7     7.8     4.9     2.3     3.0     3.3
    Nondefense.........................     6.3     6.3     5.5     6.8     6.8     6.2     2.1     3.6     1.6      .8     3.5      .0     2.8     1.8     -.2     2.1
  State and local......................     4.2     4.1     2.6     3.6     2.1     1.1      .7      .8      .0      .0      .5      .2      .9     1.5     1.7     1.6

Addenda:
  Final sales of domestic product......     1.5     1.0     1.2     1.7      .8     1.3     2.0     3.3     4.0     4.5     4.0     3.4     3.6     3.5     4.2     4.2
  Gross domestic purchases.............      .4     1.4     1.9     2.8     2.7     2.2     2.5     3.4     4.0     4.9     5.1     4.4     4.5     4.2     3.5     3.4
  Final sales to domestic purchasers...     1.6     1.4     1.9     2.3     1.6     1.9     2.5     3.6     4.0     4.7     4.5     4.1     4.3     4.1     4.1     4.0
  Gross national product...............      .4      .9     1.0     2.3     1.6     1.8     2.4     3.5     4.4     5.0     4.4     3.6     3.2     3.2     3.5   .....
  Real disposable personal income......     1.2     3.7     4.6     1.4     2.9      .7     1.4     3.6     3.8     4.1     3.2     2.1     4.1     2.3     2.4     1.5

  Price indexes:
    Gross domestic purchases...........     1.6     1.3     1.4     1.6     1.9     2.6     2.1     2.1     2.0     2.1     3.0     3.0     3.4     3.1     2.9     3.3
    Gross domestic purchases excluding
     food and energy...................     2.1     2.0     1.9     1.9     1.7     1.9     1.7     1.7     1.7     1.9     2.5     2.6     2.7     2.6     2.4     2.4
    GDP................................     2.4     2.0     1.6     1.6     1.7     2.1     2.0     2.1     2.0     2.1     2.8     2.7     2.9     2.8     2.5     2.9
    GDP excluding food and energy......     2.3     2.3     2.1     2.0     1.9     2.0     1.8     1.8     1.7     1.9     2.5     2.6     2.8     2.7     2.5     2.6
    PCE................................     1.7     1.2     1.2     1.5     1.8     2.3     1.8     1.8     1.7     1.9     2.7     2.6     3.1     2.7     2.5     3.1
    PCE excluding food and energy......     2.2     1.8     1.8     1.9     1.6     1.5     1.3     1.2     1.3     1.7     2.0     2.0     2.2     2.2     2.0     1.9
    Market-based PCE\1\................     1.3      .7      .9     1.1     1.7     2.3     1.7     1.8     1.6     1.7     2.5     2.3     2.8     2.4     2.4     3.1
    Market-based PCE excluding food
     and energy\1\.....................     1.8     1.5     1.5     1.5     1.4     1.3     1.2     1.1     1.0     1.3     1.5     1.5     1.7     1.8     1.6     1.7
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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     III 04      IV 04       I 05      II 05     III 05
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   10,469.6   10,971.2   11,734.3   11,818.8   11,995.2   12,198.8   12,378.0   12,589.6

Plus: Income receipts from the rest of the
 world.....................................      305.7      343.7      415.4      418.1      462.4      462.3      489.4      .....
Less: Income payments to the rest of the
 world.....................................      275.0      275.6      361.7      369.6      425.6      422.9      453.9      .....

Equals: Gross national product.............   10,500.2   11,039.3   11,788.0   11,867.3   12,032.0   12,238.2   12,413.5      .....

Less: Consumption of fixed capital.........    1,292.0    1,331.3    1,435.3    1,534.1    1,442.0    1,448.4    1,457.2    1,790.4
Less: Statistical discrepancy..............      -21.0       47.1       76.8       90.8       30.6       39.4       37.6      .....

Equals: National income....................    9,229.3    9,660.9   10,275.9   10,242.4   10,559.3   10,750.4   10,918.7      .....
  Compensation of employees................    6,091.2    6,321.1    6,687.6    6,724.2    6,895.8    7,001.7    7,100.9    7,187.0
    Wage and salary accruals...............    4,980.9    5,111.1    5,389.4    5,422.0    5,562.9    5,629.9    5,710.2    5,776.5
    Supplements to wages and salaries......    1,110.3    1,210.0    1,298.1    1,302.3    1,332.9    1,371.8    1,390.6    1,410.5
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      768.4      810.2      889.6      889.1      900.9      917.9      936.6      937.5
  Rental income of persons with capital
   consumption adjustment..................      152.9      131.7      134.2      122.1      128.7      118.0      104.4       27.5
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................      886.3    1,031.8    1,161.5    1,117.2    1,219.5    1,288.2    1,347.5      .....
  Net interest and miscellaneous payments..      520.9      528.5      505.5      497.5      492.7      498.3      488.7      493.9
  Taxes on production and imports less
   subsidies...............................      724.4      754.8      809.4      812.3      824.4      833.2      848.0      857.6
  Business current transfer payments.......       84.3       81.6       91.1       83.0      102.6       99.0       99.6       31.8
  Current surplus of government
   enterprises.............................         .9        1.3       -3.0       -3.0       -5.2       -6.1       -7.0      -21.7

Addendum:
  Gross domestic income....................   10,490.6   10,924.2   11,657.5   11,728.0   11,964.6   12,159.4   12,340.4      .....
-----------------------------------------------------------------------------------------------------------------------------------

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2002       2003       2004     III 04      IV 04       I 05      II 05     III 05
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    8,881.9    9,169.1    9,713.3    9,729.2   10,024.8   10,073.4   10,221.2   10,293.0

  Compensation of employees, received......    6,091.2    6,321.1    6,687.6    6,724.2    6,895.8    7,001.7    7,100.9    7,187.0
    Wage and salary disbursements..........    4,980.9    5,111.1    5,389.4    5,422.0    5,562.9    5,629.9    5,710.2    5,776.5
    Supplements to wages and salaries......    1,110.3    1,210.0    1,298.1    1,302.3    1,332.9    1,371.8    1,390.6    1,410.5
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      768.4      810.2      889.6      889.1      900.9      917.9      936.6      937.5
    Farm...................................       10.6       27.7       35.8       29.7       24.6       24.7       19.6       18.1
    Nonfarm................................      757.8      782.4      853.8      859.4      876.3      893.2      917.1      919.4
  Rental income of persons with capital
   consumption adjustment..................      152.9      131.7      134.2      122.1      128.7      118.0      104.4       27.5
  Personal income receipts on assets.......    1,333.2    1,338.7    1,396.5    1,378.2    1,493.6    1,407.9    1,439.8    1,465.4
    Personal interest income...............      936.1      917.6      905.9      904.7      907.4      915.4      936.0      947.7
    Personal dividend income...............      397.2      421.1      490.6      473.5      586.2      492.5      503.8      517.6
  Personal current transfer receipts.......    1,286.2    1,344.0    1,427.5    1,441.5    1,449.2    1,488.8    1,509.6    1,552.8

  Less: Contributions for government
   social insurance........................      750.0      776.6      822.2      825.9      843.5      861.0      870.1      877.3

Less: Personal current taxes...............    1,051.8      999.9    1,049.1    1,058.4    1,094.3    1,171.4    1,212.6    1,222.8

Equals: Disposable personal income.........    7,830.1    8,169.2    8,664.2    8,670.9    8,930.4    8,902.0    9,008.6    9,070.2

Less: Personal outlays.....................    7,645.3    7,996.3    8,512.5    8,566.3    8,725.0    8,854.6    9,001.2    9,170.2

Equals: Personal saving....................      184.7      172.8      151.8      104.6      205.4       47.4        7.4     -100.1

  Personal saving as a percentage of
   disposable personal income..............        2.4        2.1        1.8        1.2        2.3         .5         .1       -1.1

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    7,562.2    7,741.8    8,004.3    7,993.3    8,169.2    8,098.1    8,128.7    8,110.5
-----------------------------------------------------------------------------------------------------------------------------------
  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  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   I 05  II 05 III 05
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................    1.6    2.7    4.2    1.6    2.7    2.2    2.4     .2    1.7    3.7    7.2    3.6    4.3    3.5    4.0    3.3    3.8    3.3    3.8

  Goods.............................    1.2    3.4    6.5    2.6    3.9    1.5    5.2   -5.2    4.3    2.3   16.8    2.9    7.2    4.7    6.6    3.9    4.4    5.0    5.3
  Services..........................    2.5    2.2    2.7    2.8    2.5    3.4    1.7    2.9     .7    3.7    1.3    3.8    3.3    1.2    3.0    3.2    3.2    1.5    3.4
  Structures........................   -2.5    3.2    5.7   -8.5    -.1   -2.7   -3.0    3.1    -.9    8.2   13.6    4.1     .6   13.1    1.2    2.2    5.2    8.4    1.3

  Motor vehicle output..............   11.5    3.8    4.6   22.0   15.5    5.7   11.6     .5     .3   -2.5   22.6   -3.6   14.4   -7.3    3.0    8.8    4.3    -.3   15.0
  GDP excuding motor vehicle
   output...........................    1.3    2.7    4.2     .9    2.3    2.1    2.0     .2    1.8    3.9    6.7    3.8    3.9    3.9    4.0    3.1    3.8    3.4    3.4

  Final sales of computers\1\.......    2.9   20.2   20.4   23.7   -7.6     .7   29.3   15.3    7.1   14.4   78.0   11.9   10.2   10.3   13.3   56.5   54.9   45.4   13.7
  GDP excluding final sales of
   computers........................    1.6    2.6    4.1    1.4    2.8    2.2    2.2     .1    1.7    3.6    6.8    3.5    4.2    3.4    3.9    3.0    3.5    3.0    3.7

  Farm gross value added\2\.........    6.8    8.4     .0   94.2  -64.0  133.6   63.9   34.2  -22.3   27.0  -34.1  -13.1   89.8  -31.5  -11.3  -17.1    7.3  -31.1   23.8

  Nonfarm business gross value
   added\3\.........................    1.5    3.3    4.8    1.2    3.5    1.4    3.1     .1    2.0    4.7   10.4    2.8    4.2    4.6    4.6    3.9    4.3    4.4    4.2

Price indexes:
  GDP...............................    1.7    2.0    2.6    1.7    1.7    1.5    1.6    2.2    3.1    1.1    1.8    1.9    3.6    3.9    1.5    2.7    3.1    2.6    3.1
  GDP excluding food and energy.....    2.1    1.8    2.5    2.6    2.1    1.8    1.6    2.0    2.6     .9    1.6    1.7    3.3    3.4    2.0    2.6    2.9    2.4    2.5
  GDP excluding final sales of
   computers........................    2.0    2.2    2.7    1.9    1.9    1.7    1.7    2.4    3.2    1.2    2.0    1.9    3.7    3.9    1.6    2.9    3.3    2.8    3.3

  Gross domestic purchases..........    1.6    2.2    2.9     .6    1.5    2.5    1.7    2.2    4.1     .4    2.0    1.7    4.2    4.1    2.0    3.2    2.9    3.3    4.0
  Gross domestic purchases excluding
   food and energy..................    1.9    1.8    2.4    2.3    1.8    1.7    1.6    1.8    2.5    1.0    1.7    1.8    3.4    3.2    2.0    2.4    3.0    2.1    2.2
  Gross domestic purchases excluding
   final sales of computers to
   domestic purchasers..............    1.8    2.4    3.0     .9    1.7    2.6    1.9    2.4    4.3     .5    2.2    1.8    4.3    4.3    2.2    3.4    3.1    3.5    4.2

  Personal consumption expenditures
   (PCE)............................    1.4    1.9    2.6     .6     .9    2.8    1.8    1.7    3.0     .6    2.0    1.3    3.9    3.8    1.5    3.1    2.3    3.3    3.7
  Personal consumption expenditures
   excluding food and energy........    1.8    1.3    2.0    2.6    1.3    1.8    1.9    1.2    1.1    1.0    1.5    1.4    2.7    2.5    1.5    2.3    2.4    1.7    1.3
  Market-based PCE\4\...............    1.1    1.9    2.3    -.5     .6    2.8    1.7    1.7    3.1     .5    1.9     .9    3.4    3.7    1.1    2.8    2.1    3.4    3.9
  Market-based PCE excluding food
   and energy\4\....................    1.5    1.2    1.5    1.6     .9    1.6    1.7    1.2     .8    1.0    1.4     .9    1.9    2.0    1.1    1.8    2.2    1.5    1.2
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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 2003-04
annual percent change in real GDP uses prices for 2003 and 2004 as weights, and the 2003-04 annual
percent change in GDP prices uses quantities for 2003 and 2004 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.