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Gross Domestic Product and Corporate Profits: Second Quarter 2006 "final" estimates
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Virginia H. Mannering: (202) 606-5304 (GDP) BEA 06-43 Greg Key: (202) 606-9727 (Profits) Recorded message: (202) 606-5306 GROSS DOMESTIC PRODUCT: SECOND QUARTER 2006 (FINAL) CORPORATE PROFITS: SECOND QUARTER 2006 (FINAL) 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 2.6 percent in the second quarter of 2006, according to final estimates released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 5.6 percent. The GDP estimates released today are based on more complete source data than were available for the preliminary estimates issued last month. In the preliminary estimates, the increase in real GDP was 2.9 percent (see "Revisions" on page 3). The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE) for services, exports, nonresidential structures, state and local government spending, and private inventory investment that were partly offset by negative contributions from residential fixed investment and federal government spending. Imports, which are a subtraction in the calculation of GDP, increased. The deceleration in real GDP growth in the second quarter primarily reflected downturns in PCE for durable goods, in equipment and software, and in federal government spending, decelerations in PCE for nondurable goods and in exports, and a larger decrease in residential fixed investment that were partly offset by a deceleration in imports, an acceleration in PCE for services, and an upturn in private inventory investment. Final sales of computers contributed 0.04 percentage point to the second-quarter growth in real GDP after contributing 0.07 percentage point to the first-quarter growth. Motor vehicle output subtracted 0.31 percentage point from the second-quarter growth in real GDP after contributing 0.12 percentage point to the first-quarter growth. The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 4.0 percent in the second quarter, the same as in the preliminary estimate; this index increased 2.7 percent in the first quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 2.9 percent in the second quarter, compared with an increase of 3.0 percent in the first. Real personal consumption expenditures increased 2.6 percent in the second quarter, compared with an increase of 4.8 percent in the first. Real nonresidential fixed investment increased 4.4 percent, compared with an increase of 13.7 percent. Nonresidential structures increased 20.3 percent, compared with an increase of 8.7 percent. Equipment and software decreased 1.4 percent, in contrast to an increase of 15.6 percent. Real residential fixed investment decreased 11.1 percent, compared with a decrease of 0.3 percent. Real exports of goods and services increased 6.2 percent in the second quarter, compared with an increase of 14.0 percent in the first. Real imports of goods and services increased 1.4 percent, compared with an increase of 9.1 percent. Real federal government consumption expenditures and gross investment decreased 4.5 percent in the second quarter, in contrast to an increase of 8.8 percent in the first. National defense decreased 2.0 percent, in contrast to an increase of 8.9 percent. Nondefense decreased 9.3 percent, in contrast to an increase of 8.5 percent. Real state and local government consumption expenditures and gross investment increased 4.0 percent, compared with an increase of 2.7 percent. The real change in private inventories added 0.44 percentage point to the second-quarter change in real GDP, after subtracting 0.03 percentage point from the first-quarter change. Private businesses increased inventories $53.7 billion in the second quarter, following increases of $41.2 billion in the first quarter and $43.5 billion in the fourth. Real final sales of domestic product -- GDP less change in private inventories -- increased 2.1 percent in the second quarter, compared with an increase of 5.6 percent in the first. Gross domestic purchases Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 2.0 percent in the second quarter, compared with an increase of 5.3 percent in the first. Gross national product Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- increased 2.3 percent in the second quarter, compared with an increase of 6.1 percent in the first. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which decreased $5.6 billion in the second quarter after increasing $14.4 billion in the first; in the second quarter, receipts increased $45.0 billion, and payments increased $50.6 billion. Current-dollar GDP Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 5.9 percent, or $188.9 billion, in the second quarter to a level of $13,197.3 billion. In the first quarter, current-dollar GDP increased 9.0 percent, or $277.9 billion. Revisions The final estimate of the second-quarter increase in real GDP is 0.3 percentage point, or $9.5 billion, lower than the preliminary estimate issued last month. The downward revision to the percentage change in real GDP primarily reflected a downward revision to private inventory investment, an upward revision to imports of services, and a downward revision to residential fixed investment that were partly offset by an upward revision to PCE for services. Advance Preliminary Final (Percent change from preceding quarter) Real GDP............................... 2.5 2.9 2.6 Current-dollar GDP..................... 5.8 6.3 5.9 Gross domestic purchases price index... 4.0 4.0 4.0 Corporate Profits Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $22.7 billion in the second quarter, compared with an increase of $175.6 billion in the first quarter. Current-production cash flow (net cash flow with inventory valuation and capital consumption adjustments) -- the internal funds available to corporations for investment -- increased $1.1 billion in the second quarter, compared with an increase of $125.3 billion in the first. Taxes on corporate income increased $19.2 billion in the second quarter, compared with an increase of $32.3 billion in the first. Profits after tax with inventory valuation and capital consumption adjustments increased $3.6 billion in the second quarter, compared with an increase of $143.2 billion in the first. Dividends increased $15.4 billion, compared with an increase of $14.7 billion; current- production undistributed profits decreased $11.8 billion, in contrast to an increase of $128.5 billion. Domestic profits of financial corporations increased $41.7 billion in the second quarter, compared with an increase of $51.4 billion in the first. Domestic profits of nonfinancial corporations decreased $32.8 billion in the second quarter, in contrast to an increase of $94.5 billion in the first. In the second quarter, real gross corporate value added increased, and profits per unit of real value added decreased. The decrease in unit profits reflected increases in both the unit labor and nonlabor costs corporations incurred that were partly offset by an increase in unit prices. The rest-of-the-world component of profits increased $13.8 billion in the second quarter, compared with an increase of $29.8 billion in the first. This measure is calculated as (1) receipts by U.S. residents of earnings from their foreign affiliates plus dividends received by U.S. residents from unaffiliated foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign parents plus dividends paid by U.S. corporations to unaffiliated foreign residents. The second-quarter increase was accounted for by a larger increase in receipts than in payments. Profits before tax with inventory valuation adjustment is the best available measure of industry profits because estimates of the capital consumption adjustment by industry do not exist. This measure reflects depreciation-accounting practices used for federal income tax returns. According to this measure, domestic profits of financial corporations increased, while domestic profits of nonfinancial corporations decreased. The decrease in nonfinancial corporations reflected decreases in ?other? nonfinancial industries, in manufacturing, in wholesale trade, in information, and in retail trade that were partly offset by increases in transportation and warehousing and in utilities. Within manufacturing, the decrease reflected decreases in all the industries shown except petroleum and coal products, and computer and electronic products. Profits before tax increased $70.9 billion in the second quarter, compared with an increase of $142.3 billion in the first. The before-tax measure of profits does not reflect, as does profits from current production, the capital consumption and inventory valuation adjustments. These adjustments convert depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to the current-cost measures used in the national income and product accounts. The capital consumption adjustment decreased $12.2 billion in the second quarter (from -$148.6 billion to -$160.8 billion), in contrast to an increase of $17.0 billion in the first. The inventory valuation adjustment decreased $36.0 billion (from -$22.9 billion to -$58.9 billion), in contrast to an increase of $16.3 billion. * * * BEA's national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. * * * Next release -- October 27, 2006, at 8:30 A.M. EDT for: Gross Domestic Product: Third Quarter 2006 (Advance) - more - Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period [Quarters seasonally adjusted at annual rates] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2003 2004 2005 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 IV 05 I 06 II 06r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP). 2.5 3.9 3.2 2.4 .2 1.2 3.5 7.5 2.7 3.9 4.0 3.1 2.6 3.4 3.3 4.2 1.8 5.6 2.6 Personal consumption expenditures... 2.8 3.9 3.5 2.3 1.4 2.1 3.6 5.8 2.3 4.7 2.9 3.9 4.3 2.7 4.2 3.9 .8 4.8 2.6 Durable goods..................... 5.8 6.4 5.5 11.5 -5.2 .4 16.8 16.7 .7 6.1 1.7 8.7 6.1 2.4 12.8 9.0 -12.3 19.8 -.1 Nondurable goods.................. 3.2 3.6 4.5 .3 3.6 3.8 2.3 7.7 1.8 4.3 1.7 3.7 5.4 5.2 4.9 3.4 3.9 5.9 1.4 Services.......................... 1.9 3.5 2.6 1.3 1.8 1.5 1.8 2.9 2.8 4.6 3.8 3.1 3.4 1.6 2.3 3.2 2.0 1.6 3.7 Gross private domestic investment... 3.6 9.8 5.4 5.8 -1.0 -1.3 3.3 17.7 9.3 4.8 21.7 2.0 5.1 8.2 -3.6 5.2 16.2 7.8 1.0 Fixed investment.................. 3.4 7.3 7.5 -.7 -1.4 -.4 10.6 13.6 5.5 2.2 11.7 7.6 4.9 7.8 10.5 6.3 2.8 8.2 -1.6 Nonresidential.................. 1.0 5.9 6.8 -2.0 -5.0 -2.6 10.7 9.4 2.8 1.7 7.2 10.3 8.3 6.0 5.2 5.9 5.2 13.7 4.4 Structures.................... -4.1 2.2 1.1 -15.5 -5.3 -6.9 14.7 -.8 -4.7 3.3 6.9 3.1 -2.0 5.3 -2.0 -7.0 12.0 8.7 20.3 Equipment and software........ 2.8 7.3 8.9 3.3 -4.9 -1.0 9.3 13.2 5.6 1.2 7.3 13.0 12.3 6.3 7.9 11.0 2.8 15.6 -1.4 Residential..................... 8.4 9.9 8.6 2.0 6.4 4.1 10.5 22.2 10.6 3.1 19.8 3.2 -.6 11.1 20.0 7.1 -.9 -.3 -11.1 Change in private inventories..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports........................... 1.3 9.2 6.8 2.9 -3.1 -5.3 -1.7 11.4 20.8 7.2 6.2 4.8 9.9 4.7 9.4 3.2 9.6 14.0 6.2 Goods........................... 1.8 9.0 7.5 2.2 -9.1 2.0 -1.2 8.8 19.8 7.1 6.4 8.3 6.1 5.5 12.8 3.7 11.5 17.3 6.0 Services........................ .0 9.7 5.1 4.6 11.7 -20.0 -2.8 17.5 23.1 7.5 5.6 -2.8 19.2 2.9 2.0 2.1 5.5 6.7 6.7 Imports........................... 4.1 10.8 6.1 5.7 9.0 -5.0 4.1 3.7 17.6 10.2 16.0 4.4 12.0 4.1 1.4 2.5 13.2 9.1 1.4 Goods........................... 4.9 10.9 6.7 6.5 8.1 -3.9 8.6 .6 17.2 10.1 17.7 4.7 12.6 4.9 2.0 2.7 14.1 9.4 -.1 Services........................ .0 10.0 2.8 1.7 14.0 -10.6 -15.7 21.2 19.6 10.9 7.6 3.1 9.0 -.2 -1.5 1.2 8.3 7.4 9.9 Government consumption expenditures and gross investment............... 2.5 1.9 .9 2.3 4.8 -1.4 6.1 1.5 .7 2.9 2.2 1.3 -1.9 1.6 1.1 3.4 -1.1 4.9 .8 Federal........................... 6.8 4.3 1.5 3.0 10.2 .1 19.7 .4 3.1 7.2 2.5 5.0 -5.2 3.4 .4 9.6 -4.6 8.8 -4.5 National defense................ 8.7 5.9 1.7 4.1 14.8 -4.4 36.3 -5.3 8.1 9.1 2.0 9.1 -9.1 4.5 2.9 11.2 -9.9 8.9 -2.0 Nondefense...................... 3.4 1.2 1.1 1.2 2.1 9.0 -6.4 12.4 -6.0 3.6 3.5 -2.9 3.4 1.2 -4.4 6.2 7.1 8.5 -9.3 State and local................... .2 .5 .5 1.9 2.0 -2.2 -.8 2.1 -.6 .5 2.1 -.9 .1 .6 1.5 -.1 1.0 2.7 4.0 Addenda: Final sales of domestic product... 2.5 3.5 3.5 1.4 .1 1.3 4.5 6.9 2.1 3.4 2.6 4.0 2.6 3.3 5.6 4.4 -.3 5.6 2.1 Gross domestic purchases.......... 2.8 4.4 3.3 2.8 1.7 .9 4.0 6.6 3.0 4.4 5.5 3.1 3.3 3.4 2.4 4.0 2.7 5.3 2.0 Final sales to domestic purchasers....................... 2.8 4.0 3.6 1.8 1.6 1.1 5.1 6.1 2.5 4.0 4.1 4.0 3.2 3.3 4.6 4.2 .7 5.4 1.6 Gross national product (GNP)...... 2.7 3.8 3.1 2.9 1.0 .8 4.1 7.3 3.5 3.5 2.9 3.3 2.0 3.6 3.0 4.9 .5 6.1 2.3 Disposable personal income........ 2.2 3.6 1.2 -1.6 .2 1.7 5.0 6.3 1.7 3.9 2.4 2.8 7.5 -4.0 .5 -.6 5.5 4.6 1.7 Current-dollar measures: GDP............................. 4.7 6.9 6.3 3.9 2.4 4.4 4.8 9.7 4.9 7.8 7.9 5.3 5.9 7.0 5.8 7.6 5.1 9.0 5.9 Final sales of domestic product. 4.7 6.5 6.7 3.0 2.4 4.6 5.8 9.1 4.4 7.3 6.4 6.2 5.9 6.9 8.2 7.8 3.0 9.1 5.5 Gross domestic purchases........ 5.2 7.6 6.9 4.4 3.9 5.1 4.7 9.1 4.9 8.9 9.7 5.8 7.0 6.7 5.8 8.5 6.3 8.2 6.1 Final sales to domestic purchasers..................... 5.2 7.2 7.2 3.6 3.8 5.3 5.7 8.5 4.4 8.5 8.3 6.7 7.0 6.7 8.1 8.8 4.3 8.2 5.7 GNP............................. 4.9 6.7 6.2 4.4 3.2 4.0 5.4 9.6 5.8 7.4 6.7 5.4 5.3 7.2 5.6 8.4 3.8 9.6 5.7 Disposable personal income...... 4.2 6.4 4.1 .2 1.9 4.8 5.7 8.9 3.2 7.7 6.0 4.7 10.7 -1.8 3.6 3.5 8.6 6.8 5.8 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised 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] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2003 2004 2005 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 IV 05 I 06 II 06r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Percent change at annual rate: Gross domestic product.......... 2.5 3.9 3.2 2.4 .2 1.2 3.5 7.5 2.7 3.9 4.0 3.1 2.6 3.4 3.3 4.2 1.8 5.6 2.6 Percentage points at annual rates: Personal consumption expenditures. 1.94 2.71 2.44 1.57 .97 1.41 2.53 4.13 1.59 3.30 2.07 2.74 2.97 1.94 2.94 2.76 .53 3.38 1.81 Durable goods................... .50 .54 .45 .98 -.47 .03 1.35 1.39 .06 .51 .14 .71 .50 .20 1.02 .74 -1.08 1.50 -.01 Motor vehicles and parts...... .12 .07 .02 .89 -.75 -.04 .65 .46 -.29 .09 -.14 .22 .17 -.29 .50 .38 -1.51 .60 -.04 Furniture and household equipment.................... .27 .35 .29 .06 .21 .05 .49 .67 .27 .33 .28 .36 .21 .27 .28 .40 .33 .65 .10 Other......................... .10 .11 .14 .02 .07 .02 .21 .26 .08 .10 .01 .13 .12 .21 .24 -.03 .10 .26 -.06 Nondurable goods................ .64 .73 .90 .06 .70 .75 .45 1.53 .36 .86 .34 .74 1.07 1.04 .98 .70 .79 1.20 .30 Food.......................... .23 .33 .51 .00 .20 .39 .04 .61 .02 .54 .16 .28 .70 .53 .55 .61 .39 .64 .19 Clothing and shoes............ .14 .14 .17 -.05 .31 -.02 .29 .31 -.02 .32 -.14 .18 .19 .17 .25 .08 .27 .23 -.10 Gasoline, fuel oil, and other energy goods................. .01 .02 -.01 .04 -.04 -.02 -.02 .10 .06 .00 .00 -.04 .01 .12 -.10 -.15 -.06 -.03 .02 Other......................... .26 .24 .23 .07 .23 .39 .14 .52 .30 .00 .32 .32 .16 .21 .28 .16 .19 .36 .19 Services........................ .80 1.45 1.09 .54 .74 .63 .73 1.21 1.18 1.92 1.59 1.30 1.39 .70 .94 1.32 .83 .67 1.52 Housing....................... .10 .40 .30 -.11 -.07 .11 .18 .35 .40 .49 .42 .37 .32 .29 .28 .24 .18 .24 .25 Household operation........... .06 .10 .08 -.11 .19 .00 .00 .02 .17 .11 .10 .06 .25 .01 .04 .09 .01 -.58 .31 Electricity and gas......... .03 .02 .04 -.07 .23 -.05 -.08 -.03 .12 .06 -.06 -.07 .25 .00 .00 .03 .03 -.58 .23 Other household operation... .03 .08 .04 -.04 -.04 .05 .08 .05 .05 .05 .16 .13 .00 .01 .04 .06 -.02 .00 .08 Transportation................ .00 .03 .00 -.07 -.01 .07 -.03 .03 .02 .05 .06 .00 .04 .02 -.03 -.04 .00 .10 .04 Medical care.................. .45 .37 .43 .59 .59 .47 .28 .28 .28 .33 .47 .53 .43 .32 .40 .53 .44 .52 .31 Recreation.................... .10 .14 .08 .04 .16 .02 .15 .13 .16 .18 .13 .09 .05 .13 .05 .05 .04 .09 .02 Other......................... .09 .41 .20 .20 -.12 -.04 .16 .40 .15 .76 .42 .24 .30 -.07 .20 .44 .16 .31 .58 Gross private domestic investment. .54 1.49 .87 .87 -.14 -.16 .51 2.56 1.39 .74 3.17 .32 .82 1.32 -.61 .84 2.51 1.31 .17 Fixed investment................ .51 1.11 1.17 -.12 -.21 -.04 1.52 2.00 .83 .34 1.72 1.16 .77 1.22 1.62 1.02 .46 1.34 -.27 Nonresidential................ .10 .58 .67 -.21 -.52 -.24 1.01 .92 .29 .18 .69 .97 .81 .59 .51 .59 .52 1.36 .45 Structures.................. -.11 .06 .03 -.44 -.14 -.18 .35 -.02 -.12 .08 .17 .08 -.05 .14 -.06 -.20 .31 .25 .56 Equipment and software...... .21 .52 .64 .23 -.38 -.06 .66 .95 .41 .10 .52 .90 .86 .45 .56 .78 .21 1.11 -.10 Information processing equipment and software... .22 .36 .30 .23 -.38 .31 .13 .82 .70 .30 .05 .21 .33 .43 .29 .26 .25 .74 -.04 Computers and peripheral equipment.............. .09 .10 .12 .16 -.04 .12 .00 .26 .21 -.03 -.03 .21 .17 .10 .10 .06 .16 .15 .03 Software................ .07 .15 .09 .12 -.17 .06 .05 .32 .20 .17 .03 .12 .16 .03 .12 .07 .04 .18 .07 Other................... .05 .11 .10 -.05 -.17 .12 .08 .23 .29 .16 .05 -.12 .00 .30 .06 .13 .04 .40 -.14 Industrial equipment...... .04 -.05 .10 .08 .01 .17 .14 -.14 -.22 -.09 -.05 .19 .05 .16 -.07 .23 .19 -.05 .16 Transportation equipment.. -.12 .14 .15 -.07 -.02 -.57 .31 .01 -.13 -.08 .46 .39 .40 -.14 .11 .27 -.31 .31 -.32 Other equipment........... .07 .07 .09 .00 .02 .04 .08 .26 .07 -.04 .06 .10 .08 .01 .24 .03 .08 .11 .09 Residential................... .41 .53 .50 .09 .30 .20 .51 1.08 .55 .16 1.03 .18 -.04 .63 1.11 .43 -.06 -.02 -.72 Change in private inventories... .04 .38 -.30 .98 .08 -.12 -1.01 .56 .56 .40 1.44 -.84 .05 .09 -2.23 -.18 2.05 -.03 .44 Farm.......................... .03 .07 -.06 .31 .03 .19 -.16 -.06 -.05 .27 .61 -.48 -.38 .16 -.26 .28 .14 -.01 -.09 Nonfarm....................... .00 .31 -.24 .67 .04 -.31 -.85 .62 .60 .13 .84 -.35 .43 -.06 -1.97 -.46 1.90 -.02 .54 Net exports of goods and services. -.44 -.65 -.26 -.49 -1.52 .21 -.73 .51 -.47 -.73 -1.62 -.20 -.81 -.16 .72 -.06 -1.07 -.04 .42 Exports......................... .12 .88 .68 .27 -.31 -.53 -.16 1.02 1.81 .69 .60 .46 .96 .47 .94 .33 .97 1.41 .66 Goods......................... .12 .60 .52 .14 -.64 .13 -.08 .55 1.20 .47 .43 .55 .42 .38 .88 .27 .80 1.20 .45 Services...................... .00 .28 .16 .13 .33 -.65 -.08 .47 .61 .22 .17 -.09 .54 .09 .06 .06 .17 .21 .21 Imports......................... -.56 -1.53 -.94 -.76 -1.21 .74 -.57 -.51 -2.29 -1.42 -2.22 -.66 -1.77 -.63 -.22 -.39 -2.04 -1.46 -.24 Goods......................... -.56 -1.29 -.87 -.72 -.90 .47 -.97 -.07 -1.86 -1.17 -2.03 -.59 -1.55 -.64 -.26 -.36 -1.84 -1.27 .01 Services...................... .00 -.24 -.07 -.04 -.31 .27 .40 -.44 -.43 -.25 -.18 -.08 -.22 .01 .04 -.03 -.20 -.19 -.25 Government consumption expenditures and gross investment............. .47 .36 .17 .43 .89 -.26 1.16 .29 .14 .55 .43 .24 -.37 .31 .21 .64 -.21 .94 .16 Federal......................... .44 .30 .11 .20 .64 .01 1.26 .03 .21 .49 .18 .34 -.38 .23 .03 .66 -.33 .61 -.32 National defense.............. .37 .27 .08 .17 .59 -.20 1.41 -.25 .35 .41 .09 .41 -.45 .21 .13 .52 -.49 .41 -.09 Consumption expenditures.... .32 .22 .05 .07 .67 -.22 1.30 -.32 .31 .40 .00 .34 -.44 .25 .03 .45 -.47 .37 -.17 Gross investment............ .05 .05 .03 .10 -.08 .02 .12 .07 .05 .00 .10 .08 -.01 -.04 .10 .07 -.02 .05 .08 Nondefense.................... .08 .03 .03 .03 .05 .21 -.16 .28 -.14 .09 .08 -.07 .08 .03 -.11 .14 .16 .20 -.23 Consumption expenditures..... .07 .03 .00 .11 .07 .19 -.21 .27 -.12 .11 .03 -.06 .05 .01 -.09 .08 .05 .16 -.10 Gross investment............. .01 .00 .02 -.08 -.02 .01 .06 .01 -.03 -.03 .05 -.01 .03 .01 -.02 .06 .11 .03 -.12 State and local................. .02 .06 .06 .23 .25 -.27 -.10 .26 -.07 .06 .25 -.10 .01 .08 .18 -.01 .13 .33 .48 Consumption expenditures.... .00 .10 .08 .17 .15 -.19 -.07 -.04 .07 .19 .15 .08 .15 .02 .05 .14 .09 .17 .20 Gross investment............ .02 -.04 -.02 .06 .10 -.09 -.02 .30 -.15 -.13 .11 -.18 -.14 .06 .13 -.15 .03 .16 .28 Addenda: Goods........................... 1.00 1.56 1.43 1.69 -1.74 1.27 .56 5.00 .81 1.20 .99 1.56 1.43 1.51 1.09 2.07 .97 3.86 1.12 Services........................ 1.20 1.84 1.31 .98 1.65 .03 2.06 1.15 1.63 2.59 1.74 1.48 1.47 1.07 1.04 2.02 .46 1.39 1.40 Structures...................... .31 .51 .49 -.29 .29 -.09 .85 1.33 .22 .05 1.31 .06 -.29 .82 1.13 .09 .33 .33 .04 Motor vehicle output............ .05 .12 .20 .40 .01 -.46 .36 .30 -.23 .33 -.24 .52 .06 .38 -.03 .70 -.71 .12 -.31 Final sales of computers........ .15 .06 .16 .20 .11 .12 -.02 .50 .15 -.13 -.14 .15 .26 .16 .20 .08 .20 .07 .04 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised See "Explanatory Note" at the end of the tables. Table 3.--Gross Domestic Product and Related Measures: Level and Change From Preceding Period ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Billions of current dollars Billions of chained (2000) dollars ------------------------------------------------------ ------------------------------------------------------------------------------- Seasonally adjusted Seasonally adjusted Change from preceding at annual rates at annual rates period -------------------------------------------- -------------------------------------------- ------------------------- 2005 II 05 III 05 IV 05 I 06 II 06r 2005 II 05 III 05 IV 05 I 06 II 06r 2005 I 06 II 06r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product....... 12,455.8 12,346.1 12,573.5 12,730.5 13,008.4 13,197.3 11,048.6 11,001.8 11,115.1 11,163.8 11,316.4 11,388.1 345.1 152.6 71.7 Personal consumption expenditures. 8,742.4 8,674.6 8,847.3 8,927.8 9,079.2 9,228.1 7,841.2 7,819.8 7,895.3 7,910.2 8,003.8 8,055.0 264.1 93.6 51.2 Durable goods................... 1,033.1 1,042.3 1,057.3 1,019.6 1,064.1 1,061.8 1,145.3 1,150.8 1,175.9 1,137.9 1,190.5 1,190.3 59.6 52.6 -.2 Motor vehicles and parts...... 448.2 459.6 468.1 421.6 442.7 441.7 452.9 463.0 474.6 426.3 445.1 443.7 2.5 18.8 -1.4 Furniture and household equipment.................... 377.2 374.4 380.0 386.0 402.3 401.3 490.6 482.0 497.7 511.5 538.5 542.9 44.6 27.0 4.4 Other......................... 207.7 208.3 209.2 212.0 219.1 218.8 212.6 214.2 213.1 216.3 224.6 222.5 17.0 8.3 -2.1 Nondurable goods................ 2,539.3 2,508.6 2,584.9 2,613.5 2,658.2 2,721.4 2,276.8 2,268.4 2,287.6 2,309.6 2,342.8 2,351.1 97.6 33.2 8.3 Food.......................... 1,201.4 1,191.9 1,214.7 1,233.7 1,262.3 1,274.0 1,065.7 1,058.5 1,074.9 1,085.7 1,103.4 1,108.8 54.7 17.7 5.4 Clothing and shoes............ 341.8 341.5 341.3 349.1 355.4 355.1 372.7 371.1 373.9 383.1 391.1 387.4 21.8 8.0 -3.7 Gasoline, fuel oil, and other energy goods................. 302.1 285.5 331.0 322.1 316.2 359.1 199.5 200.7 197.8 196.6 196.0 196.3 -1.0 -.6 .3 Other......................... 694.0 689.7 698.0 708.6 724.2 733.3 643.9 642.2 646.7 652.4 662.6 668.3 25.4 10.2 5.7 Services........................ 5,170.0 5,123.7 5,205.1 5,294.7 5,356.8 5,444.9 4,436.6 4,420.0 4,454.5 4,476.7 4,494.5 4,535.4 112.7 17.8 40.9 Housing....................... 1,304.1 1,297.2 1,311.7 1,326.6 1,345.4 1,370.1 1,122.6 1,120.0 1,126.4 1,131.2 1,137.6 1,144.5 31.0 6.4 6.9 Household operation........... 483.0 474.3 484.3 506.1 494.8 499.1 418.0 416.9 419.4 419.8 404.3 412.5 8.7 -15.5 8.2 Electricity and gas......... 199.8 192.1 199.4 219.9 206.2 206.9 153.8 153.2 154.0 154.7 141.7 147.0 4.0 -13.0 5.3 Other household operation... 283.2 282.2 285.0 286.2 288.6 292.2 264.1 263.7 265.4 264.9 264.8 267.0 4.6 -.1 2.2 Transportation................ 320.4 318.8 322.3 325.9 330.4 335.9 284.4 284.8 283.6 283.5 286.3 287.5 .4 2.8 1.2 Medical care.................. 1,493.4 1,478.3 1,505.0 1,534.0 1,557.2 1,578.2 1,260.9 1,253.8 1,267.5 1,279.0 1,292.6 1,300.9 43.6 13.6 8.3 Recreation.................... 360.6 357.9 362.6 367.7 372.4 377.2 313.1 312.5 313.9 315.1 317.5 318.1 8.3 2.4 .6 Other......................... 1,208.4 1,197.1 1,219.1 1,234.4 1,256.5 1,284.3 1,036.2 1,030.6 1,042.2 1,046.5 1,054.9 1,070.6 20.2 8.4 15.7 Gross private domestic investment. 2,057.4 2,009.1 2,052.6 2,154.5 2,214.8 2,237.1 1,866.3 1,832.6 1,855.9 1,927.0 1,963.6 1,968.5 95.7 36.6 4.9 Fixed investment................ 2,036.2 2,016.7 2,067.9 2,105.8 2,167.7 2,174.8 1,842.0 1,835.8 1,864.2 1,877.3 1,914.6 1,906.8 128.1 37.3 -7.8 Nonresidential................ 1,265.7 1,251.8 1,276.7 1,304.3 1,359.2 1,384.3 1,223.8 1,214.8 1,232.4 1,248.2 1,288.8 1,302.8 78.0 40.6 14.0 Structures.................. 338.6 332.0 336.3 359.7 378.2 406.3 251.5 251.7 247.1 254.2 259.6 271.9 2.8 5.4 12.3 Equipment and software...... 927.1 919.8 940.4 944.7 981.0 977.9 984.9 974.8 1,000.6 1,007.6 1,044.8 1,041.2 80.7 37.2 -3.6 Information processing equipment and software... 454.3 452.3 456.6 461.3 482.4 479.9 552.6 547.9 557.7 567.3 595.9 594.3 43.3 28.6 -1.6 Computers and peripheral equipment.............. 85.1 85.3 83.9 85.9 88.0 85.9 ..... ..... ..... ..... ..... ..... ..... ..... ..... Software................ 194.0 193.8 195.6 196.9 203.6 207.0 206.2 205.7 208.0 209.5 215.6 217.8 11.2 6.1 2.2 Other................... 175.2 173.3 177.2 178.4 190.8 187.1 193.6 191.5 196.0 197.5 211.6 206.7 12.9 14.1 -4.9 Industrial equipment...... 155.1 149.5 157.0 163.9 163.4 170.1 143.5 138.4 144.9 150.4 149.0 153.9 10.8 -1.4 4.9 Transportation equipment.. 158.3 158.0 165.0 154.6 165.7 155.9 145.4 144.6 152.3 143.2 152.2 142.7 16.6 9.0 -9.5 Other equipment........... 159.4 159.9 161.8 164.9 169.4 172.1 147.3 148.0 148.8 151.2 154.3 157.1 9.7 3.1 2.8 Residential................... 770.4 764.9 791.2 801.5 808.5 790.6 608.0 609.9 620.4 618.9 618.5 600.5 48.1 -.4 -18.0 Change in private inventories... 21.3 -7.6 -15.3 48.6 47.2 62.3 19.6 -7.4 -12.7 43.5 41.2 53.7 -33.8 -2.3 12.5 Farm.......................... .3 -6.7 1.3 5.8 5.4 2.3 .2 -5.8 1.1 4.8 4.3 1.9 -5.9 -.5 -2.4 Nonfarm....................... 21.0 -.9 -16.6 42.8 41.8 59.9 19.6 -1.0 -14.0 38.6 36.8 52.2 -27.4 -1.8 15.4 Net exports of goods and services. -716.7 -686.4 -728.8 -775.4 -765.2 -781.8 -619.2 -606.1 -607.6 -636.6 -636.6 -624.2 -28.3 .0 12.4 Exports......................... 1,303.1 1,293.8 1,312.4 1,352.4 1,405.4 1,448.1 1,196.1 1,191.0 1,200.5 1,228.4 1,269.3 1,288.5 75.7 40.9 19.2 Goods......................... 907.5 902.6 913.9 944.3 989.3 1,019.1 843.2 839.7 847.5 870.8 906.2 919.5 58.8 35.4 13.3 Services...................... 395.6 391.2 398.5 408.1 416.0 429.0 352.9 351.2 353.0 357.8 363.6 369.5 17.0 5.8 5.9 Imports......................... 2,019.9 1,980.2 2,041.2 2,127.8 2,170.6 2,229.8 1,815.3 1,797.1 1,808.1 1,865.0 1,905.9 1,912.7 104.0 40.9 6.8 Goods......................... 1,699.0 1,662.4 1,719.1 1,799.3 1,832.6 1,879.0 1,549.9 1,533.6 1,543.9 1,595.8 1,631.9 1,631.7 97.7 36.1 -.2 Services...................... 320.9 317.8 322.1 328.5 338.1 350.8 267.5 265.5 266.3 271.7 276.6 283.2 7.2 4.9 6.6 Government consumption expenditures and gross investment............. 2,372.8 2,348.9 2,402.4 2,423.6 2,479.6 2,513.9 1,958.0 1,952.6 1,968.8 1,963.5 1,987.1 1,991.2 17.4 23.6 4.1 Federal......................... 878.3 868.4 895.8 886.2 921.7 919.7 727.5 721.6 738.2 729.6 745.1 736.6 10.9 15.5 -8.5 National defense.............. 589.3 584.3 605.0 590.9 613.5 616.5 483.6 481.1 494.1 481.4 491.8 489.3 8.2 10.4 -2.5 Consumption expenditures.... 516.9 512.1 530.9 516.9 537.7 537.7 413.3 410.9 421.9 410.0 419.0 414.7 5.0 9.0 -4.3 Gross investment............ 72.4 72.2 74.2 74.1 75.8 78.8 71.2 71.2 73.2 72.6 74.0 76.5 3.7 1.4 2.5 Nondefense.................... 289.0 284.1 290.7 295.3 308.2 303.2 243.7 240.1 243.8 248.0 253.1 247.0 2.7 5.1 -6.1 Consumption expenditures.... 251.7 248.7 253.4 254.2 265.9 264.6 207.3 205.4 207.5 208.7 212.8 210.1 .3 4.1 -2.7 Gross investment............ 37.4 35.4 37.4 41.1 42.4 38.6 36.7 34.8 36.6 40.1 41.1 37.2 2.8 1.0 -3.9 State and local................. 1,494.4 1,480.5 1,506.6 1,537.4 1,557.9 1,594.2 1,230.4 1,230.9 1,230.5 1,233.7 1,242.0 1,254.4 6.5 8.3 12.4 Consumption expenditures.... 1,207.2 1,192.8 1,217.8 1,243.4 1,256.2 1,280.7 988.0 986.0 989.5 991.9 996.1 1,001.2 8.4 4.2 5.1 Gross investment............ 287.3 287.7 288.7 294.0 301.7 313.5 242.1 244.7 240.7 241.6 245.7 253.1 -2.0 4.1 7.4 Residual.......................... ..... ..... ..... ..... ..... ..... -42.6 -39.1 -47.1 -53.7 -78.7 -77.6 ..... ..... ..... Addenda: Final sales of domestic product. 12,434.6 12,353.7 12,588.8 12,681.9 12,961.2 13,135.1 11,025.2 11,005.3 11,123.5 11,115.5 11,269.0 11,328.0 376.9 153.5 59.0 Gross domestic purchases........ 13,172.5 13,032.6 13,302.3 13,505.9 13,773.6 13,979.1 11,659.7 11,599.9 11,714.6 11,792.9 11,946.3 12,005.9 373.2 153.4 59.6 Final sales to domestic purchasers..................... 13,151.3 13,040.2 13,317.6 13,457.3 13,726.4 13,916.8 11,636.1 11,603.2 11,722.8 11,744.6 11,898.7 11,945.9 405.0 154.1 47.2 Gross domestic product.......... 12,455.8 12,346.1 12,573.5 12,730.5 13,008.4 13,197.3 11,048.6 11,001.8 11,115.1 11,163.8 11,316.4 11,388.1 345.1 152.6 71.7 Plus: Income receipts from the rest of the world.......... 513.3 489.0 527.2 564.9 603.3 661.4 456.9 438.0 467.2 496.1 526.4 571.4 80.2 30.3 45.0 Less: Income payments to the rest of the world.......... 481.5 460.6 475.0 552.4 574.3 638.6 427.2 411.3 419.9 483.8 499.7 550.3 93.9 15.9 50.6 Equals: Gross national product.. 12,487.7 12,374.6 12,625.7 12,743.0 13,037.4 13,220.1 11,077.9 11,028.2 11,162.0 11,175.6 11,342.7 11,408.5 331.1 167.1 65.8 Net domestic product............ 10,851.0 10,855.1 10,675.5 11,168.0 11,460.3 11,624.6 9,557.2 9,603.5 9,371.6 9,727.9 9,896.5 9,959.8 237.4 168.6 63.3 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised Note.--Users are cautioned that particularly for components that exhibit rapid change in prices relative to other prices in the economy, the chained-dollar estimates should not be used to measure the component's relative importance or its contribution to the growth rate of more aggregate series. For accurate estimates of the contributions to percent changes in real GDP, use table 2. See "Explanatory Note" at the end of the tables. Table 4.--Price Indexes for Gross Domestic Product and Related Measures: Percent Change From Preceding Period [Quarters seasonally adjusted at annual rates] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2003 2004 2005 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 IV 05 I 06 II 06r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP). 2.1 2.8 3.0 1.6 2.2 3.1 1.3 2.1 2.2 3.7 3.7 2.1 3.2 3.5 2.4 3.3 3.3 3.3 3.3 Personal consumption expenditures... 2.0 2.6 2.9 1.8 1.7 3.1 .7 2.4 1.5 3.7 3.6 1.9 3.0 2.3 3.1 4.1 2.9 2.0 4.0 Durable goods..................... -3.6 -1.6 -.7 -1.8 -2.7 -4.8 -4.2 -4.0 -3.5 .0 .3 -2.3 .3 .3 -.6 -2.9 -1.3 -1.0 -.8 Nondurable goods.................. 2.0 3.3 3.6 .9 1.2 5.6 -2.9 3.9 .5 5.7 6.0 1.1 4.4 1.1 4.8 9.0 .6 1.1 8.3 Services.......................... 3.2 3.2 3.2 3.0 2.8 3.6 3.5 3.0 3.0 3.5 3.2 3.1 3.0 3.2 3.1 3.2 5.0 3.1 2.9 Gross private domestic investment... 1.5 3.3 3.4 .2 2.9 2.8 -.7 1.3 3.5 4.2 4.5 3.6 3.7 3.0 2.7 3.7 4.3 3.7 3.1 Fixed investment.................. 1.6 3.4 3.5 .2 3.0 3.1 -.8 1.3 3.5 4.3 4.6 3.6 3.7 3.1 2.7 4.0 4.6 3.8 3.0 Nonresidential.................. .1 1.2 2.6 -.4 1.1 .1 -1.3 .7 1.4 1.0 2.1 1.4 2.6 3.6 2.0 2.2 3.5 3.7 3.0 Structures.................... 3.5 6.2 11.3 4.3 5.1 4.8 -.2 2.3 4.2 6.7 7.8 10.2 12.0 11.6 9.2 13.2 16.8 12.4 10.7 Equipment and software........ -1.1 -.4 -.4 -2.0 -.3 -1.5 -1.7 .1 .4 -.9 .2 -1.5 -.5 .9 -.4 -1.5 -1.0 .6 .1 Residential..................... 4.8 7.3 5.1 1.5 7.0 9.4 .2 2.6 7.7 10.5 9.0 7.4 5.6 2.3 3.8 6.9 6.3 3.8 2.9 Change in private inventories..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports........................... 2.2 3.7 3.6 3.0 .6 4.1 1.1 .9 3.0 6.1 5.0 1.8 4.0 4.6 3.6 2.6 2.8 2.3 6.1 Goods........................... 2.0 3.7 3.1 3.3 .5 3.6 1.6 -.7 4.1 6.5 5.2 1.1 3.6 4.4 3.0 1.3 2.3 2.8 6.2 Services........................ 2.6 3.5 4.8 2.1 .7 5.3 -.2 4.7 .7 5.0 4.5 3.5 5.0 5.1 4.9 5.6 4.2 1.2 6.0 Imports........................... 3.5 5.0 6.3 3.5 .6 11.3 -3.9 2.6 .4 9.7 7.3 5.5 6.7 2.6 9.2 10.2 4.3 -.7 9.8 Goods........................... 2.9 5.0 6.5 2.6 .4 11.9 -6.7 2.5 .5 10.1 7.9 5.4 6.8 1.8 10.1 11.3 5.1 -1.6 10.6 Services........................ 6.3 5.1 5.4 8.1 1.4 8.1 11.8 3.1 .0 8.0 4.4 6.2 6.3 6.8 5.1 4.3 -.1 4.5 5.5 Government consumption expenditures and gross investment............... 4.1 4.4 5.6 2.6 3.6 9.2 1.3 2.5 2.2 6.8 5.3 4.6 5.7 7.0 4.6 5.9 4.7 4.4 4.8 Federal........................... 4.2 4.7 4.8 1.0 4.6 11.3 1.5 1.0 1.1 11.5 5.3 2.2 2.9 11.3 2.2 3.3 .4 7.6 3.8 National defense................ 4.7 4.7 5.1 2.4 6.9 10.3 1.4 1.2 1.3 10.5 5.8 2.8 3.2 11.6 2.4 3.4 1.0 6.7 4.1 Nondefense...................... 3.4 4.7 4.1 -1.4 .5 12.9 1.6 .6 .6 13.7 4.3 .9 2.3 10.6 1.8 3.2 -.7 9.5 3.2 State and local................... 4.1 4.3 6.2 3.4 3.0 8.1 1.1 3.3 2.9 4.1 5.3 6.1 7.4 4.6 6.1 7.4 7.3 2.6 5.4 Addenda: Final sales of domestic product... 2.1 2.8 3.0 1.6 2.3 3.2 1.3 2.1 2.2 3.7 3.7 2.1 3.2 3.5 2.4 3.3 3.3 3.3 3.3 Gross domestic purchases.......... 2.3 3.1 3.5 1.7 2.2 4.1 .6 2.2 1.9 4.3 4.1 2.6 3.6 3.2 3.3 4.4 3.5 2.7 4.0 Final sales to domestic purchasers....................... 2.3 3.1 3.5 1.7 2.2 4.2 .6 2.2 1.9 4.3 4.1 2.6 3.6 3.2 3.3 4.4 3.5 2.7 4.0 Gross national product (GNP)...... 2.1 2.8 3.0 1.6 2.2 3.2 1.3 2.1 2.2 3.7 3.7 2.1 3.2 3.5 2.4 3.3 3.2 3.3 3.3 Implicit price deflators: GDP............................. 2.1 2.8 3.0 1.5 2.2 3.2 1.3 2.1 2.2 3.8 3.7 2.1 3.2 3.4 2.5 3.3 3.3 3.3 3.3 Gross domestic purchases........ 2.3 3.1 3.5 1.6 2.2 4.1 .6 2.3 1.9 4.3 4.0 2.6 3.6 3.2 3.4 4.3 3.5 2.7 4.0 GNP............................. 2.1 2.8 3.0 1.5 2.3 3.1 1.3 2.1 2.2 3.8 3.7 2.1 3.2 3.4 2.5 3.3 3.3 3.3 3.3 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised See "Explanatory Note" at the end of the tables. Table 5.--Real Gross Domestic Product, Quantity Indexes [Index numbers, 2000=100] ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted --------------------------------------------------- 2003 2004 2005 II 05 III 05 IV 05 I 06 II 06r ----------------------------------------------------------------------------------------------------------------------------------- Gross domestic product............. 104.931 109.031 112.546 112.069 113.223 113.719 115.274 116.004 Personal consumption expenditures.......... 108.249 112.430 116.349 116.031 117.152 117.373 118.761 119.521 Durable goods............................ 118.214 125.753 132.666 133.299 136.207 131.799 137.893 137.868 Nondurable goods......................... 108.002 111.913 116.924 116.496 117.481 118.608 120.313 120.742 Services................................. 106.363 110.055 112.925 112.501 113.379 113.945 114.398 115.440 Gross private domestic investment.......... 92.949 102.026 107.537 105.595 106.938 111.034 113.143 113.429 Fixed investment......................... 95.110 102.080 109.708 109.339 111.032 111.811 114.033 113.570 Nonresidential......................... 87.804 92.995 99.326 98.601 100.025 101.308 104.606 105.738 Structures........................... 77.735 79.418 80.302 80.356 78.903 81.174 82.893 86.819 Equipment and software............... 91.747 98.400 107.180 106.087 108.889 109.653 113.704 113.313 Residential............................ 113.977 125.281 136.050 136.476 138.821 138.495 138.391 134.368 Change in private inventories............ ..... ..... ..... ..... ..... ..... ..... ..... Exports of goods and services.............. 93.599 102.201 109.105 108.637 109.503 112.054 115.783 117.536 Imports of goods and services.............. 104.693 115.962 123.007 121.775 122.520 126.377 129.146 129.608 Government consumption expenditures and gross investment.......................... 110.644 112.720 113.731 113.417 114.358 114.048 115.423 115.657 Federal.................................. 118.712 123.813 125.701 124.668 127.545 126.053 128.728 127.262 State and local.......................... 106.557 107.094 107.660 107.709 107.674 107.954 108.682 109.762 Addenda: Final sales of domestic product.......... 105.375 109.096 112.958 112.754 113.965 113.883 115.455 116.060 Gross domestic purchases................. 106.071 110.691 114.351 113.764 114.889 115.657 117.161 117.746 Final sales to domestic purchasers....... 106.504 110.761 114.755 114.430 115.610 115.825 117.345 117.810 Gross national product................... 105.067 109.039 112.399 111.894 113.252 113.390 115.085 115.753 ----------------------------------------------------------------------------------------------------------------------------------- r Revised See "Explanatory Note" at the end of the tables. Table 6.--Price Indexes for Gross Domestic Product [Index numbers, 2000=100] ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted --------------------------------------------------- 2003 2004 2005 II 05 III 05 IV 05 I 06 II 06r ----------------------------------------------------------------------------------------------------------------------------------- Gross domestic product............. 106.409 109.429 112.744 112.229 113.139 114.048 114.967 115.905 Personal consumption expenditures (PCE)..................................... 105.597 108.373 111.493 110.940 112.067 112.873 113.445 114.573 Durable goods............................ 92.366 90.845 90.198 90.570 89.908 89.606 89.385 89.206 Nondurable goods......................... 104.145 107.617 111.530 110.604 113.016 113.177 113.484 115.769 Services................................. 109.379 112.863 116.529 115.929 116.858 118.281 119.194 120.059 Gross private domestic investment.......... 103.191 106.645 110.284 109.664 110.675 111.853 112.860 113.717 Fixed investment......................... 103.313 106.811 110.542 109.875 110.946 112.194 113.238 114.074 Nonresidential......................... 99.591 100.834 103.428 103.055 103.607 104.510 105.471 106.266 Structures........................... 113.872 120.951 134.647 131.941 136.089 141.476 145.684 149.432 Equipment and software............... 94.912 94.503 94.134 94.347 93.983 93.754 93.887 93.920 Residential............................ 112.372 120.618 126.714 125.450 127.573 129.536 130.765 131.696 Change in private inventories............ ..... ..... ..... ..... ..... ..... ..... ..... Exports of goods and services.............. 101.429 105.151 108.949 108.648 109.341 110.108 110.737 112.400 Imports of goods and services.............. 99.685 104.678 111.268 110.222 112.919 114.117 113.918 116.608 Government consumption expenditures and gross investment.......................... 109.849 114.718 121.183 120.302 122.029 123.444 124.791 126.262 Federal.................................. 110.094 115.249 120.726 120.361 121.353 121.479 123.721 124.871 State and local.......................... 109.712 114.417 121.463 120.276 122.438 124.620 125.434 127.095 Addenda: PCE excluding food and energy............ 105.175 107.314 109.559 109.298 109.732 110.418 110.983 111.738 Market-based PCE\1\...................... 104.995 107.393 110.339 109.801 110.952 111.647 112.116 113.272 Market-based PCE excluding food and energy\1\........................... 104.330 105.865 107.713 107.530 107.854 108.375 108.810 109.524 Final sales of domestic product.......... 106.430 109.455 112.783 112.261 113.181 114.101 115.025 115.961 Gross domestic purchases................. 105.966 109.210 112.981 112.362 113.572 114.541 115.313 116.455 Final sales to domestic purchasers....... 105.986 109.235 113.021 112.395 113.614 114.594 115.371 116.510 Gross national product................... 106.401 109.419 112.733 112.218 113.131 114.038 114.958 115.897 Implicit price deflators: Gross domestic product................. 106.404 109.426 112.737 112.219 113.121 114.034 114.951 115.887 Final sales of domestic product........ 106.430 109.455 112.783 112.252 113.173 114.092 115.017 115.952 Gross domestic purchases............... 105.961 109.207 112.975 112.351 113.553 114.526 115.296 116.435 Final sales to domestic purchasers..... 105.985 109.235 113.021 112.385 113.604 114.583 115.360 116.499 Gross national product................. 106.396 109.416 112.726 112.209 113.113 114.025 114.942 115.879 ----------------------------------------------------------------------------------------------------------------------------------- r Revised 1. This index is a supplemental measure that is based on household expenditures for which there are observable price measures. It excludes most implicit prices (for example, the services furnished without payment by financial intermediaries) and the expenses of nonprofit institutions. Percentage changes for these series are included in the addenda to table 8 and in appendix table A. See "Explanatory Note" at the end of the tables. Table 7.--Real Gross Domestic Product: Percent Change from Preceding Year ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP).... 1.9 -.2 3.3 2.7 4.0 2.5 3.7 4.5 4.2 4.5 3.7 .8 1.6 2.5 3.9 3.2 Personal consumption expenditures...... 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 2.8 3.9 3.5 Durable goods........................ -.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 5.8 6.4 5.5 Nondurable goods..................... 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 3.6 4.5 Services............................. 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 1.9 3.5 2.6 Gross private domestic investment...... -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 3.6 9.8 5.4 Fixed investment..................... -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 3.4 7.3 7.5 Nonresidential..................... .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 1.0 5.9 6.8 Structures....................... 1.5 -11.1 -6.0 -.7 1.8 6.4 5.6 7.3 5.1 -.4 6.8 -2.3 -17.1 -4.1 2.2 1.1 Equipment and software........... .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 2.8 7.3 8.9 Residential........................ -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 9.9 8.6 Change in private inventories........ ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services...... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports.............................. 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 1.3 9.2 6.8 Goods.............................. 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 9.0 7.5 Services........................... 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 .0 9.7 5.1 Imports.............................. 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 4.1 10.8 6.1 Goods.............................. 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 10.9 6.7 Services........................... 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 .0 10.0 2.8 Government consumption expenditures and gross investment.................. 3.2 1.1 .5 -.9 .0 .5 1.0 1.9 1.9 3.9 2.1 3.4 4.4 2.5 1.9 .9 Federal.............................. 2.0 -.2 -1.7 -4.2 -3.7 -2.7 -1.2 -1.0 -1.1 2.2 .9 3.9 7.0 6.8 4.3 1.5 National defense................... .0 -1.1 -5.0 -5.6 -4.9 -3.8 -1.4 -2.8 -2.1 1.9 -.5 3.9 7.4 8.7 5.9 1.7 Nondefense......................... 8.3 2.4 6.9 -.7 -1.2 -.4 -.7 2.6 .7 2.8 3.5 3.9 6.3 3.4 1.2 1.1 State and local...................... 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 .2 .5 .5 Addenda: Final sales of domestic product...... 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 2.5 3.5 3.5 Gross domestic purchases............. 1.4 -.8 3.3 3.2 4.4 2.4 3.8 4.8 5.3 5.3 4.4 .9 2.2 2.8 4.4 3.3 Final sales to domestic purchasers... 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 2.8 4.0 3.6 Gross national product............... 2.0 -.3 3.3 2.7 3.9 2.6 3.7 4.4 4.0 4.6 3.7 .8 1.5 2.7 3.8 3.1 Real disposable personal income...... 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 2.2 3.6 1.2 Price indexes: Gross domestic purchases........... 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 2.3 3.1 3.5 Gross domestic purchases excluding food and energy................... 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 1.9 2.7 2.8 GDP................................ 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 2.1 2.8 3.0 GDP excluding food and energy...... 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 1.9 2.7 3.0 Personal consumption expenditures.. 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 2.0 2.6 2.9 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- 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 IV 05 I 06 II 06r ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP).... 2.2 1.9 1.5 1.8 3.1 3.7 4.3 4.5 3.4 3.4 3.3 3.1 3.4 3.1 3.7 3.5 Personal consumption expenditures (PCE)................................. 3.2 1.9 2.0 2.3 3.2 3.4 4.1 3.9 3.5 4.0 3.5 3.8 3.8 2.9 3.4 3.0 Durable goods........................ 11.0 1.2 2.4 5.5 6.7 8.3 9.8 6.1 4.2 5.6 4.7 7.4 7.5 2.5 6.6 3.4 Nondurable goods..................... 2.4 2.1 2.3 2.5 4.3 3.9 4.0 3.8 2.9 3.8 4.0 4.8 4.7 4.4 4.5 3.6 Services............................. 2.0 1.9 1.8 1.6 2.0 2.2 3.0 3.5 3.6 3.7 3.0 2.6 2.6 2.3 2.3 2.6 Gross private domestic investment...... -1.4 4.9 1.3 1.6 4.4 7.0 8.6 13.2 9.2 8.2 9.0 2.8 3.6 6.3 6.2 7.4 Fixed investment..................... -4.9 -2.5 -1.0 1.9 5.4 7.2 7.9 8.2 6.7 6.6 8.0 7.7 7.4 6.8 6.9 3.9 Nonresidential..................... -8.7 -6.5 -3.9 .1 2.9 4.9 6.1 5.2 5.5 6.9 8.0 7.4 6.3 5.6 7.4 7.2 Structures....................... -22.0 -14.9 -11.9 -3.9 .1 .2 2.9 1.1 2.0 2.7 3.2 1.0 -1.6 1.8 2.6 8.0 Equipment and software........... -3.2 -3.4 -.9 1.5 3.9 6.6 7.2 6.7 6.7 8.3 9.7 9.8 9.3 7.0 9.2 6.8 Residential........................ 4.4 7.0 5.5 5.7 10.6 11.7 11.4 13.7 9.0 6.1 8.1 8.1 9.1 9.0 6.1 -1.5 Change in private inventories........ ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services...... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports.............................. 1.6 3.8 1.1 -1.9 .1 5.8 9.1 11.2 9.6 7.0 6.4 7.2 6.8 6.7 9.0 8.2 Goods.............................. 1.1 1.1 2.0 -1.6 -.1 7.1 8.4 10.4 10.3 7.0 6.6 8.1 7.0 8.3 11.2 9.5 Services........................... 2.8 10.2 -1.0 -2.4 .5 3.0 10.9 13.2 7.9 7.1 5.9 5.0 6.3 3.1 4.0 5.2 Imports.............................. 6.4 9.7 5.3 3.3 2.8 4.8 8.8 11.7 11.9 10.6 9.0 5.4 4.9 5.2 6.4 6.4 Goods.............................. 7.2 9.9 6.4 4.7 3.2 5.3 9.0 11.2 12.3 11.2 9.8 6.0 5.5 5.8 6.9 6.4 Services........................... 2.4 8.8 .1 -3.3 1.0 2.2 7.9 14.7 10.1 7.6 4.8 2.5 2.0 1.9 3.7 6.6 Government consumption expenditures and gross investment.................. 4.9 4.0 2.6 2.9 2.7 1.7 2.8 1.8 1.8 1.1 .8 .5 1.0 1.2 2.1 2.0 Federal.............................. 7.5 7.8 6.3 8.0 7.3 5.5 7.4 3.3 4.4 2.3 1.3 .8 1.9 2.1 3.4 2.1 National defense................... 7.9 8.4 6.3 11.7 9.1 7.5 11.1 3.3 7.0 2.5 1.4 1.6 2.1 1.9 2.9 1.7 Nondefense......................... 6.8 6.8 6.5 1.3 4.0 1.9 .6 3.2 -.5 1.8 1.2 -.7 1.5 2.4 4.2 2.9 State and local...................... 3.6 2.1 .7 .2 .3 -.4 .3 1.0 .3 .4 .5 .3 .5 .8 1.3 1.9 Addenda: Final sales of domestic product...... 1.7 .8 1.1 1.8 3.2 3.7 4.2 3.7 3.0 3.1 3.1 3.9 4.0 3.2 3.8 2.9 Gross domestic purchases............. 2.8 2.7 2.0 2.3 3.3 3.6 4.5 4.9 4.0 4.1 3.8 3.0 3.3 3.1 3.6 3.5 Final sales to domestic purchasers... 2.3 1.6 1.7 2.4 3.4 3.7 4.4 4.2 3.6 3.8 3.6 3.8 3.8 3.2 3.7 3.0 Gross national product............... 2.3 1.6 1.6 2.2 3.3 3.9 4.6 4.3 3.3 2.9 3.0 3.0 3.4 3.0 3.6 3.4 Real disposable personal income...... 1.4 2.9 .6 1.3 3.3 3.7 4.2 3.6 2.7 4.1 2.1 1.6 .8 .3 2.5 2.8 Price indexes: Gross domestic purchases........... 1.6 1.9 2.6 2.1 2.3 2.2 2.2 3.1 3.2 3.7 3.4 3.2 3.6 3.6 3.5 3.6 Gross domestic purchases excluding food and energy................... 1.9 1.7 1.9 1.8 1.9 1.9 2.1 2.6 2.8 3.0 3.0 2.8 2.8 2.8 2.7 2.9 GDP................................ 1.6 1.7 2.1 2.1 2.2 2.2 2.3 2.9 2.9 3.2 3.1 2.8 3.1 3.1 3.1 3.3 GDP excluding food and energy...... 2.0 1.9 2.0 1.9 1.9 1.9 2.1 2.6 2.9 3.1 3.1 2.9 2.9 3.0 2.9 3.1 PCE................................ 1.5 1.8 2.3 1.8 1.9 1.9 2.0 2.8 2.7 3.0 2.7 2.6 3.1 3.1 3.0 3.3 PCE excluding food and energy...... 1.9 1.6 1.5 1.4 1.3 1.4 1.8 2.1 2.1 2.2 2.2 2.0 2.0 2.1 2.0 2.2 Market-based PCE\1\................ 1.1 1.7 2.3 1.7 1.8 1.6 1.7 2.4 2.3 2.7 2.5 2.4 3.1 3.0 2.9 3.2 Market-based PCE excluding food and energy\1\..................... 1.5 1.4 1.3 1.2 1.1 1.0 1.3 1.5 1.4 1.7 1.8 1.7 1.7 1.8 1.6 1.9 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised 1. This index is a supplemental measure that is based on household expenditures for which there are observable price measures. It excludes most implicit prices (for example, the services furnished without payment by financial intermediaries) and the expenses of nonprofit institutions. Table 9.--Relation of Gross Domestic Product, Gross National Product, and National Income [Billions of dollars] ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates --------------------------------------------------- 2003 2004 2005 II 05 III 05 IV 05 I 06 II 06r ----------------------------------------------------------------------------------------------------------------------------------- Gross domestic product..................... 10,960.8 11,712.5 12,455.8 12,346.1 12,573.5 12,730.5 13,008.4 13,197.3 Plus: Income receipts from the rest of the world..................................... 336.8 410.2 513.3 489.0 527.2 564.9 603.3 661.4 Less: Income payments to the rest of the world..................................... 280.0 363.9 481.5 460.6 475.0 552.4 574.3 638.6 Equals: Gross national product............. 11,017.6 11,758.7 12,487.7 12,374.6 12,625.7 12,743.0 13,037.4 13,220.1 Less: Consumption of fixed capital......... 1,336.5 1,436.2 1,604.8 1,491.1 1,898.0 1,562.5 1,548.0 1,572.8 Less: Statistical discrepancy.............. 48.8 66.7 71.0 88.1 84.5 74.3 -61.9 -72.0 Equals: National income.................... 9,632.3 10,255.9 10,811.8 10,795.4 10,643.2 11,106.2 11,551.3 11,719.3 Compensation of employees................ 6,325.4 6,650.3 7,030.3 6,953.7 7,093.6 7,184.4 7,400.3 7,533.2 Wage and salary accruals............... 5,127.7 5,377.1 5,664.8 5,601.3 5,715.2 5,787.0 5,970.1 6,081.2 Supplements to wages and salaries...... 1,197.7 1,273.2 1,365.5 1,352.4 1,378.4 1,397.4 1,430.3 1,452.0 Proprietors' income with inventory valuation and capital consumption adjustments............................. 811.3 911.1 970.7 965.8 967.3 996.8 1,008.3 1,011.9 Rental income of persons with capital consumption adjustment.................. 133.0 127.0 72.8 102.8 -11.5 81.5 76.8 71.4 Corporate profits with inventory valuation and capital consumption adjustments............................. 993.1 1,182.6 1,330.7 1,342.9 1,266.3 1,393.5 1,569.1 1,591.8 Net interest and miscellaneous payments.. 524.7 485.1 483.4 477.1 482.9 490.0 514.8 513.2 Taxes on production and imports less subsidies............................... 759.3 819.4 865.1 864.7 872.1 874.2 897.4 914.0 Business current transfer payments....... 83.8 85.5 74.2 99.9 .2 99.1 93.8 93.1 Current surplus of government enterprises............................. 1.7 -5.0 -15.4 -11.3 -27.7 -13.3 -9.2 -9.4 Addendum: Gross domestic income.................... 10,912.0 11,645.8 12,384.8 12,258.1 12,489.0 12,656.2 13,070.3 13,269.3 ----------------------------------------------------------------------------------------------------------------------------------- r Revised Table 10.--Personal Income and Its Disposition [Billions of dollars] ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates --------------------------------------------------- 2003 2004 2005 II 05 III 05 IV 05 I 06 II 06r ----------------------------------------------------------------------------------------------------------------------------------- Personal income\1\......................... 9,163.6 9,731.4 10,239.2 10,161.5 10,262.7 10,483.7 10,721.4 10,901.0 Compensation of employees, received...... 6,310.4 6,665.3 7,030.3 6,953.7 7,093.6 7,184.4 7,400.3 7,533.2 Wage and salary disbursements.......... 5,112.7 5,392.1 5,664.8 5,601.3 5,715.2 5,787.0 5,970.1 6,081.2 Supplements to wages and salaries...... 1,197.7 1,273.2 1,365.5 1,352.4 1,378.4 1,397.4 1,430.3 1,452.0 Proprietors' income with inventory valuation and capital consumption adjustments............................. 811.3 911.1 970.7 965.8 967.3 996.8 1,008.3 1,011.9 Farm................................... 29.2 36.2 30.2 28.7 29.7 28.7 23.9 17.5 Nonfarm................................ 782.1 874.9 940.4 937.1 937.7 968.1 984.4 994.3 Rental income of persons with capital consumption adjustment.................. 133.0 127.0 72.8 102.8 -11.5 81.5 76.8 71.4 Personal income receipts on assets....... 1,336.6 1,427.9 1,519.4 1,500.5 1,532.7 1,580.2 1,602.3 1,647.7 Personal interest income............... 914.1 890.8 945.0 934.8 951.2 981.7 989.1 1,019.2 Personal dividend income............... 422.6 537.1 574.4 565.7 581.5 598.5 613.2 628.5 Personal current transfer receipts....... 1,351.0 1,426.5 1,526.6 1,510.1 1,569.0 1,539.8 1,570.4 1,589.7 Less: Contributions for government social insurance........................ 778.6 826.4 880.6 871.5 888.5 898.9 936.7 952.9 Less: Personal current taxes............... 1,001.1 1,049.8 1,203.1 1,191.8 1,215.0 1,247.6 1,332.6 1,378.6 Equals: Disposable personal income......... 8,162.5 8,681.6 9,036.1 8,969.7 9,047.7 9,236.1 9,388.8 9,522.4 Less: Personal outlays..................... 7,987.7 8,507.2 9,070.9 9,000.4 9,180.3 9,264.5 9,418.5 9,577.0 Equals: Personal saving.................... 174.9 174.3 -34.8 -30.8 -132.6 -28.5 -29.7 -54.6 Personal saving as a percentage of disposable personal income.............. 2.1 2.0 -.4 -.3 -1.5 -.3 -.3 -.6 Addendum: Disposable personal income, billions of chained (2000) dollars\2\............... 7,729.9 8,010.8 8,104.6 8,085.8 8,074.1 8,183.3 8,276.8 8,311.9 ----------------------------------------------------------------------------------------------------------------------------------- r Revised 1. Personal income is also equal to national income less corporate profits with inventory valuation and capital consumption adjustments, taxes on production and imports less subsidies, contributions for government social insurance, net interest and miscellaneous payments, business current transfer payments, current surplus of government enterprises, and wage accruals less disbursements, plus personal income receipts on assets, and personal current transfer receipts. 2. Equals disposable personal income deflated by the implicit price deflator for personal consumption expenditures. Table 11.--Corporate Profits: Level and Percent Change ------------------------------------------------------------------------------------------------------------------------------------------------------------- Billions of dollars Percent change from preceding period ---------------------------------------------------------------- ------------------------------------------------------ Seasonally adjusted Quarterly Quarter one at annual rates rates year ago --------------------------------------- ------------------------------- ------- 2003 2004 2005 II 05 III 05 IV 05 I 06 II 06r 2004 2005 III 05 IV 05 I 06 II 06r II 06r ------------------------------------------------------------------------------------------------------------------------------------------------------------- Corporate profits with inventory valuation and capital consumption adjustments......................... 993.1 1,182.6 1,330.7 1,342.9 1,266.3 1,393.5 1,569.1 1,591.8 19.1 12.5 -5.7 10.0 12.6 1.4 18.5 Less: Taxes on corporate income...... 243.3 300.1 399.3 392.8 378.9 424.6 456.9 476.1 23.3 33.1 -3.5 12.1 7.6 4.2 21.2 Equals: Profits after tax with inventory valuation and capital consumption adjustments............. 749.9 882.5 931.4 950.1 887.5 968.9 1,112.1 1,115.7 17.7 5.5 -6.6 9.2 14.8 .3 17.4 Net dividends...................... 424.7 539.5 576.9 568.2 584.0 601.0 615.7 631.1 27.0 6.9 2.8 2.9 2.5 2.5 11.1 Undistributed profits with inventory valuation and capital consumption adjustments........... 325.1 343.0 354.5 381.9 303.5 367.9 496.4 484.6 5.5 3.4 -20.5 21.2 34.9 -2.4 26.9 Cash flow: Net cash flow with inventory valuation and capital consumption adjustments....................... 1,084.9 1,139.2 1,211.3 1,209.8 1,230.7 1,223.9 1,349.2 1,350.3 5.0 6.3 1.7 -.5 10.2 .1 11.6 Undistributed profits with inventory valuation and capital consumption adjustments......... 325.1 343.0 354.5 381.9 303.5 367.9 496.4 484.6 5.5 3.4 -20.5 21.2 34.9 -2.4 26.9 Consumption of fixed capital..... 759.8 796.2 856.8 827.9 927.2 856.0 852.8 865.6 4.8 7.6 12.0 -7.7 -.4 1.5 4.6 Less: Inventory valuation adjustment........................ -13.6 -39.8 -32.6 -21.0 -30.9 -39.2 -22.9 -58.9 ..... ..... ..... ..... ..... ..... ..... Equals: Net cash flow.............. 1,098.5 1,178.9 1,243.9 1,230.8 1,261.5 1,263.2 1,372.1 1,409.2 7.3 5.5 2.5 .1 8.6 2.7 14.5 Addenda: Profits before tax (without inventory valuation and capital consumption adjustments).......... 908.1 1,144.3 1,518.7 1,508.3 1,475.8 1,598.3 1,740.6 1,811.5 26.0 32.7 -2.2 8.3 8.9 4.1 20.1 Profits after tax (without inventory valuation and capital consumption adjustments).......... 664.8 844.2 1,119.4 1,115.5 1,096.9 1,173.7 1,283.7 1,335.4 27.0 32.6 -1.7 7.0 9.4 4.0 19.7 Inventory valuation adjustment..... -13.6 -39.8 -32.6 -21.0 -30.9 -39.2 -22.9 -58.9 ..... ..... ..... ..... ..... ..... ..... Capital consumption adjustment..... 98.7 78.1 -155.5 -144.5 -178.6 -165.6 -148.6 -160.8 ..... ..... ..... ..... ..... ..... ..... ------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised Table 12.--Corporate Profits by Industry: Level and Change From Preceding Period [Billions of dollars] ------------------------------------------------------------------------------------------------------------------------------------------------------------- Level Change from preceding period ---------------------------------------------------------------- ---------------------------------------------- Seasonally adjusted at annual rates --------------------------------------- ---------------------------------------------- 2003 2004 2005 II 05 III 05 IV 05 I 06 II 06r 2004 2005 III 05 IV 05 I 06 II 06r ------------------------------------------------------------------------------------------------------------------------------------------------------------- Corporate profits with inventory valuation and capital consumption adjustments............................. 993.1 1,182.6 1,330.7 1,342.9 1,266.3 1,393.5 1,569.1 1,591.8 189.5 148.1 -76.6 127.2 175.6 22.7 Domestic industries.......................... 827.7 1,006.3 1,133.7 1,157.7 1,042.9 1,197.2 1,343.0 1,351.9 178.6 127.4 -114.8 154.3 145.8 8.9 Financial.................................. 335.6 353.7 369.4 373.3 296.1 390.8 442.2 483.9 18.1 15.7 -77.2 94.7 51.4 41.7 Nonfinancial............................... 492.1 652.6 764.2 784.3 746.8 806.4 900.9 868.1 160.5 111.6 -37.5 59.6 94.5 -32.8 Rest of the world............................ 165.5 176.3 197.0 185.2 223.4 196.3 226.1 239.9 10.8 20.7 38.2 -27.1 29.8 13.8 Receipts from the rest of the world........ 249.1 302.0 338.0 327.4 344.0 360.6 376.3 402.0 52.9 36.0 16.6 16.6 15.7 25.7 Less: Payments to the rest of the world.... 83.6 125.8 141.0 142.2 120.5 164.2 150.2 162.1 42.2 15.2 -21.7 43.7 -14.0 11.9 Corporate profits with inventory valuation adjustment.................... 894.5 1,104.5 1,486.1 1,487.4 1,444.9 1,559.1 1,717.7 1,752.6 210.0 381.6 -42.5 114.2 158.6 34.9 Domestic industries.......................... 729.0 928.2 1,289.1 1,302.2 1,221.5 1,362.8 1,491.6 1,512.7 199.2 360.9 -80.7 141.3 128.8 21.1 Financial.................................. 317.3 344.2 389.0 391.7 317.4 413.3 463.9 508.2 26.9 44.8 -74.3 95.9 50.6 44.3 Federal Reserve banks.................... 20.1 20.0 26.6 25.9 26.9 30.4 30.9 33.7 -.1 6.6 1.0 3.5 .5 2.8 Other financial.......................... 297.2 324.1 362.5 365.7 290.6 382.9 433.0 474.4 26.9 38.4 -75.1 92.3 50.1 41.4 Nonfinancial............................... 411.8 584.0 900.1 910.5 904.1 949.4 1,027.7 1,004.5 172.2 316.1 -6.4 45.3 78.3 -23.2 Utilities................................ 11.6 16.2 30.3 30.9 22.4 38.3 39.7 46.8 4.6 14.1 -8.5 15.9 1.4 7.1 Manufacturing............................ 76.0 150.2 254.8 264.0 260.7 258.9 300.7 289.9 74.2 104.6 -3.3 -1.8 41.8 -10.8 Durable goods.......................... -5.9 31.3 73.8 86.2 75.4 72.9 102.2 78.7 37.2 42.5 -10.8 -2.5 29.3 -23.5 Fabricated metal products............ 7.9 12.3 20.6 21.2 22.8 21.2 25.7 24.1 4.4 8.3 1.6 -1.6 4.5 -1.6 Machinery............................ 1.5 7.0 13.8 13.7 14.5 15.0 19.1 18.3 5.5 6.8 .8 .5 4.1 -.8 Computer and electronic products..... -15.6 -6.7 3.9 2.8 6.7 8.0 12.3 13.1 8.9 10.6 3.9 1.3 4.3 .8 Electrical equipment, appliances, and components...................... 2.1 .2 5.7 7.2 6.7 5.6 8.4 6.8 -1.9 5.5 -.5 -1.1 2.8 -1.6 Motor vehicles, bodies and trailers, and parts........................... -12.3 -11.2 -17.9 -10.8 -19.8 -25.3 -18.2 -25.4 1.1 -6.7 -9.0 -5.5 7.1 -7.2 Other durable goods.................. 10.5 29.7 47.7 52.2 44.5 48.5 54.9 41.9 19.2 18.0 -7.7 4.0 6.4 -13.0 Nondurable goods....................... 81.9 118.9 181.0 177.8 185.2 186.0 198.5 211.2 37.0 62.1 7.4 .8 12.5 12.7 Food and beverage and tobacco products............................ 23.6 22.4 28.5 26.7 29.3 28.6 29.6 29.5 -1.2 6.1 2.6 -.7 1.0 -.1 Petroleum and coal products.......... 23.3 49.3 70.4 66.4 74.2 76.0 74.5 92.4 26.0 21.1 7.8 1.8 -1.5 17.9 Chemical products.................... 19.5 23.8 45.3 46.4 43.3 44.4 54.1 53.6 4.3 21.5 -3.1 1.1 9.7 -.5 Other nondurable goods............... 15.5 23.4 36.8 38.3 38.4 37.0 40.1 35.7 7.9 13.4 .1 -1.4 3.1 -4.4 Wholesale trade.......................... 55.2 69.9 97.6 102.1 94.1 105.9 107.2 98.3 14.7 27.7 -8.0 11.8 1.3 -8.9 Retail trade............................. 86.8 89.3 113.7 107.3 115.9 129.1 123.0 121.2 2.5 24.4 8.6 13.2 -6.1 -1.8 Transportation and warehousing........... 7.3 11.8 21.0 22.0 23.1 19.0 27.3 38.6 4.5 9.2 1.1 -4.1 8.3 11.3 Information.............................. 3.2 37.7 77.5 79.9 77.8 83.6 89.8 85.9 34.5 39.8 -2.1 5.8 6.2 -3.9 Other nonfinancial....................... 171.7 208.8 305.2 304.3 310.1 314.6 340.1 323.9 37.1 96.4 5.8 4.5 25.5 -16.2 Rest of the world............................ 165.5 176.3 197.0 185.2 223.4 196.3 226.1 239.9 10.8 20.7 38.2 -27.1 29.8 13.8 ------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised Note.--Estimates in this table are based on the 1997 North American Industry Classification System (NAICS). Table 13.--Gross Value Added of Nonfinancial Domestic Corporate Business ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates --------------------------------------------------- 2003 2004 2005 II 05 III 05 IV 05 I 06 II 06r ----------------------------------------------------------------------------------------------------------------------------------- Billions of dollars ---------------------------------------------------------------------------------------- Gross value added of nonfinancial corporate business.................... 5,558.4 5,932.9 6,369.7 6,324.4 6,425.7 6,534.8 6,788.2 6,867.0 Consumption of fixed capital............... 657.5 686.2 739.7 713.2 804.9 737.2 733.7 744.4 Net value added............................ 4,900.9 5,246.7 5,630.1 5,611.3 5,620.8 5,797.6 6,054.5 6,122.6 Compensation of employees................ 3,703.2 3,873.4 4,099.7 4,049.9 4,140.7 4,198.0 4,341.0 4,427.6 Wage and salary accruals............... 3,019.4 3,158.4 3,335.1 3,292.7 3,369.0 3,414.5 3,537.5 3,610.9 Supplements to wages and salaries...... 683.8 714.9 764.6 757.1 771.7 783.5 803.5 816.6 Taxes on production and imports less subsidies............................... 488.5 522.9 558.1 556.8 562.9 567.2 576.7 585.3 Net operating surplus.................... 709.2 850.4 972.2 1,004.6 917.3 1,032.4 1,136.8 1,109.7 Net interest and miscellaneous payments.............................. 152.6 137.8 156.6 152.9 159.3 165.1 175.1 180.0 Business current transfer payments..... 64.4 60.0 51.4 67.3 11.1 60.9 60.9 61.7 Corporate profits with inventory valuation and capital consumption adjustments........................... 492.1 652.6 764.2 784.3 746.8 806.4 900.9 868.1 Taxes on corporate income............ 135.7 185.3 251.4 244.9 255.8 266.4 280.9 283.3 Profits after tax with inventory valuation and capital consumption adjustments......................... 356.4 467.4 512.9 539.4 491.0 540.0 620.0 584.8 Net dividends...................... 292.7 366.9 228.5 303.0 126.3 120.1 377.7 392.8 Undistributed profits with inventory valuation and capital consumption adjustments........... 63.8 100.5 284.4 236.5 364.7 419.9 242.3 192.0 Addenda: Profits before tax (without inventory valuation and capital consumption adjustments)............................ 425.4 623.8 932.6 931.4 935.0 988.7 1,050.6 1,063.5 Profits after tax (without inventory valuation and capital consumption adjustments)............................ 289.7 438.6 681.3 686.5 679.2 722.3 769.7 780.2 Inventory valuation adjustment........... -13.6 -39.8 -32.6 -21.0 -30.9 -39.2 -22.9 -58.9 Capital consumption adjustment........... 80.3 68.6 -135.8 -126.2 -157.3 -143.0 -126.8 -136.5 ---------------------------------------------------------------------------------------- Billions of chained (2000) dollars ---------------------------------------------------------------------------------------- Gross value added of nonfinancial corporate business\1\................. 5,382.1 5,654.5 5,959.9 5,935.2 5,994.7 6,079.8 6,268.0 6,295.2 Consumption of fixed capital\2\............ 630.5 650.9 681.6 660.5 738.9 670.5 666.1 669.2 Net value added\3\......................... 4,751.6 5,003.6 5,278.3 5,274.7 5,255.8 5,409.3 5,601.8 5,626.1 ---------------------------------------------------------------------------------------- Dollars; quarters seasonally adjusted ---------------------------------------------------------------------------------------- Price, costs, and profits per unit of real gross value added of nonfinancial corporate business: Price per unit of real gross value added of nonfinancial corporate business\4\... 1.033 1.049 1.069 1.066 1.072 1.075 1.083 1.091 Compensation of employees (unit labor cost)................................... .688 .685 .688 .682 .691 .690 .693 .703 Unit nonlabor cost....................... .253 .248 .252 .251 .257 .251 .247 .250 Consumption of fixed capital........... .122 .121 .124 .120 .134 .121 .117 .118 Taxes on production and imports less subsidies plus business current transfer payments..................... .103 .103 .102 .105 .096 .103 .102 .103 Net interest and miscellaneous payments .028 .024 .026 .026 .027 .027 .028 .029 Corporate profits with inventory valuation and capital consumption adjustments (unit profits from current production)........ .091 .115 .128 .132 .125 .133 .144 .138 Taxes on corporate income.............. .025 .033 .042 .041 .043 .044 .045 .045 Profits after tax with inventory valuation and capital consumption adjustments........................... .066 .083 .086 .091 .082 .089 .099 .093 ----------------------------------------------------------------------------------------------------------------------------------- r Revised 1. The current-dollar gross value added is deflated using the gross value added chain-type price index for nonfinancial industries from the GDP-by-industry accounts. For periods when this price index is not available, the chain-type price index for GDP goods and structures is used. 2. Chained-dollar consumption of fixed capital of nonfinancial corporate business is calculated as the product of the chain-type quantity index and the 2000 current-dollar value of the corresponding series, divided by 100. 3. Chained-dollar net value added of nonfinancial corporate business is the difference between the gross value added and the consumption of fixed capital. 4. The deflator for gross value added of nonfinancial corporate business divided by 100. Note.--Estimates in this table are based on the 1997 North American Industry Classification System (NAICS). Appendix Table A.--Real Gross Domestic Product and Related Aggregates and Price Indexes: Percent Change From Preceding Period [Quarters seasonally adjusted at annual rates] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2003 2004 2005 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 IV 05 I 06 II 06r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP) and related aggregates: GDP............................... 2.5 3.9 3.2 2.4 .2 1.2 3.5 7.5 2.7 3.9 4.0 3.1 2.6 3.4 3.3 4.2 1.8 5.6 2.6 Goods............................. 3.1 4.9 4.6 5.2 -5.2 3.9 1.6 16.2 2.5 3.7 3.0 5.0 4.6 4.9 3.5 6.7 3.1 12.8 3.6 Services.......................... 2.1 3.2 2.3 1.7 2.9 .1 3.6 1.9 2.8 4.5 3.0 2.5 2.5 1.8 1.8 3.5 .8 2.4 2.4 Structures........................ 3.3 5.2 4.6 -3.0 3.1 -1.0 9.2 14.1 2.2 .5 13.6 .6 -2.7 8.0 11.1 .7 3.1 2.9 .3 Motor vehicle output.............. 1.3 3.5 5.9 11.6 .5 -11.8 10.9 8.9 -6.5 9.9 -7.1 16.6 1.9 12.0 -.7 22.6 -19.1 3.8 -9.4 GDP excuding motor vehicle output........................... 2.6 3.9 3.1 2.0 .2 1.7 3.2 7.4 3.0 3.6 4.5 2.7 2.6 3.1 3.4 3.6 2.6 5.6 3.0 Final sales of computers\1\....... 20.8 8.2 24.5 29.3 15.3 16.9 -2.5 90.4 20.0 -16.0 -17.4 23.0 42.8 24.3 31.5 11.6 33.8 9.5 6.7 GDP excluding final sales of computers........................ 2.4 3.9 3.1 2.2 .1 1.1 3.5 7.0 2.5 4.0 4.2 3.0 2.4 3.3 3.1 4.1 1.6 5.6 2.5 Farm gross value added\2\......... 8.4 7.4 1.0 63.9 34.2 -16.1 26.6 -34.7 -36.1 120.0 -17.4 19.4 23.7 -2.0 -24.6 11.3 8.1 14.1 3.9 Nonfarm business gross value added\3\......................... 3.1 4.3 3.8 3.1 .1 1.2 4.3 11.0 1.6 3.6 5.2 3.2 2.4 4.2 4.4 4.9 1.8 6.7 2.7 Price indexes: GDP............................... 2.1 2.8 3.0 1.6 2.2 3.1 1.3 2.1 2.2 3.7 3.7 2.1 3.2 3.5 2.4 3.3 3.3 3.3 3.3 GDP excluding food and energy..... 1.9 2.7 3.0 1.6 2.0 2.7 1.1 1.7 2.1 3.4 3.4 2.6 3.1 3.4 2.4 2.8 3.3 3.1 3.0 GDP excluding final sales of computers........................ 2.3 2.9 3.2 1.7 2.4 3.3 1.4 2.2 2.3 3.8 3.7 2.2 3.4 3.7 2.6 3.4 3.4 3.4 3.5 Gross domestic purchases.......... 2.3 3.1 3.5 1.7 2.2 4.1 .6 2.2 1.9 4.3 4.1 2.6 3.6 3.2 3.3 4.4 3.5 2.7 4.0 Gross domestic purchases excluding food and energy.................. 1.9 2.7 2.8 1.6 1.8 2.6 1.3 1.8 2.0 3.5 3.3 2.5 2.9 3.4 2.3 2.5 3.0 3.0 2.9 Gross domestic purchases excluding final sales of computers to domestic purchasers.............. 2.5 3.2 3.7 1.9 2.4 4.4 .7 2.4 2.0 4.4 4.2 2.8 3.8 3.4 3.5 4.6 3.7 2.9 4.2 Personal consumption expenditures (PCE)............................ 2.0 2.6 2.9 1.8 1.7 3.1 .7 2.4 1.5 3.7 3.6 1.9 3.0 2.3 3.1 4.1 2.9 2.0 4.0 Personal consumption expenditures excluding food and energy........ 1.4 2.0 2.1 1.9 1.2 1.1 1.3 1.8 1.6 2.5 2.5 1.7 2.3 2.4 1.9 1.6 2.5 2.1 2.7 Market-based PCE\4\............... 1.9 2.3 2.7 1.7 1.7 3.1 .3 2.2 .9 3.3 3.4 1.5 2.9 2.1 3.1 4.3 2.5 1.7 4.2 Market-based PCE excluding food and energy\4\.................... 1.1 1.5 1.7 1.7 1.2 .7 1.0 1.4 .9 1.7 1.9 1.2 1.8 2.2 1.7 1.2 1.9 1.6 2.7 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised 1. Some components of final sales of computers include computer parts. 2. Farm output less intermediate goods and services purchased. 3. Consists of GDP less gross value added of farm, of households and institutions, and of general government. 4. This index is a supplemental measure that is based on household expenditures for which there are observable price measures. It excludes most implicit prices (for example, the services furnished without payment by financial intermediaries) and the expenses of nonprofit institutions. See "Explanatory Note" at the end of the tables. Explanatory Note: NIPA Measures of Quantities and Prices Current-dollar GDP is a measure of the market value of goods, services, and structures produced in the economy in a particular period. Changes in current-dollar GDP can be decomposed into quantity and price components. Quantities, or "real" measures, and prices are expressed as index numbers with the reference year -- at present, the year 2000 -- equal to 100. Annual changes in quantities and prices are calculated using a Fisher formula that incorporates weights from two adjacent years. (Quarterly changes in quantities and prices are calculated using a Fisher formula that incorporates weights from two adjacent quarters; quarterly indexes are adjusted for consistency to the annual indexes before percent changes are calculated.) For example, the 2004-05 annual percent change in real GDP uses prices for 2004 and 2005 as weights, and the 2004-05 annual percent change in GDP prices uses quantities for 2004 and 2005 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.