News Release
Gross Domestic Product: Second Quarter 2007 "preliminary" estimates
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Virginia H. Mannering: (202) 606-5304 (GDP) BEA 07-38 Andrew Hodge: (202) 606-5564 (Profits) Recorded message: (202) 606-5306 GROSS DOMESTIC PRODUCT: SECOND QUARTER 2007 (PRELIMINARY) CORPORATE PROFITS: SECOND QUARTER 2007 (PRELIMINARY) Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 4.0 percent in the second quarter of 2007, according to preliminary estimates released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.6 percent. The GDP estimates released today are based on more complete source data than were available for the advance estimates issued last month. In the advance estimates, the increase in real GDP was 3.4 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, federal government spending, state and local government spending, and equipment and software that were partly offset by a negative contribution from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, decreased. The acceleration in real GDP growth in the second quarter primarily reflected a downturn in imports, upturns in federal government spending and in private inventory investment, accelerations in exports and in nonresidential structures, and a smaller decrease in residential fixed investment that were partly offset by a notable deceleration in PCE. Final sales of computers contributed 0.21 percentage point to the second-quarter growth in real GDP after subtracting 0.01 percentage point from the first-quarter growth. Motor vehicle output contributed 0.02 percentage point to the second-quarter growth in real GDP after contributing 0.18 percentage point to the first-quarter growth. 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. The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 3.8 percent in the second quarter, 0.1 percentage point less than in the advance estimate; this index also increased 3.8 percent in the first quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 1.6 percent in the second quarter, compared with an increase of 3.1 percent in the first. Real personal consumption expenditures increased 1.4 percent in the second quarter, compared with an increase of 3.7 percent in the first. Real nonresidential fixed investment increased 11.1 percent, compared with an increase of 2.1 percent. Nonresidential structures increased 27.7 percent, compared with an increase of 6.4 percent. Equipment and software increased 4.3 percent, compared with an increase of 0.3 percent. Real residential fixed investment decreased 11.6 percent, compared with a decrease of 16.3 percent. Real exports of goods and services increased 7.6 percent in the second quarter, compared with an increase of 1.1 percent in the first. Real imports of goods and services decreased 3.2 percent, in contrast to an increase of 3.9 percent. Real federal government consumption expenditures and gross investment increased 5.9 percent in the second quarter, in contrast to a decrease of 6.3 percent in the first. National defense increased 8.6 percent, in contrast to a decrease of 10.8 percent. Nondefense increased 0.5 percent, compared with an increase of 3.8 percent. Real state and local government consumption expenditures and gross investment increased 3.0 percent, the same increase as in the first. The real change in private inventories added 0.21 percentage point to the second-quarter change in real GDP, after subtracting 0.65 percentage point from the first-quarter change. Private businesses increased inventories $5.4 billion in the second quarter, following increases of $0.1 billion in the first quarter and $17.4 billion in the fourth. Real final sales of domestic product -- GDP less change in private inventories -- increased 3.7 percent in the second quarter, compared with an increase of 1.3 percent in the first. Gross domestic purchases Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 2.4 percent in the second quarter, compared with an increase of 1.1 percent in the first. Gross national product Real gross national product -- the goods and services produced by the labor and property supplied by U.S. residents -- increased 4.0 percent in the second quarter, compared with an increase of 0.7 percent in the first. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which increased $0.6 billion in the second quarter after increasing $1.8 billion in the first; in the second quarter, receipts increased $34.9 billion, and payments increased $34.3 billion. Current-dollar GDP Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 6.7 percent, or $222.8 billion, in the second quarter to a level of $13,774.7 billion. In the first quarter, current-dollar GDP increased 4.9 percent, or $159.6 billion. Revisions The preliminary estimate of the second-quarter increase in real GDP is 0.6 percentage point, or $15.9 billion, more than the advance estimate issued last month. The upward revision to the percentage change in real GDP primarily reflected upward revisions to nonresidential structures, to equipment and software investment, to exports, and a downward revision to imports that were partly offset by a downward revision to residential fixed investment. Advance Preliminary (Percent change from preceding quarter) Real GDP............................... 3.4 4.0 Current-dollar GDP..................... 6.2 6.7 Gross domestic purchases price index... 3.9 3.8 Corporate Profits Profits from current production (corporate profits with inventory valuation and capital consumption adjustments) increased $98.3 billion in the second quarter, compared with an increase of $16.5 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 $40.6 billion in the second quarter, compared with an increase of $0.2 billion in the first. Taxes on corporate income increased $39.4 billion in the second quarter, compared with an increase of $0.1 billion in the first. Profits after tax with inventory valuation and capital consumption adjustments increased $58.9 billion in the second quarter, compared with an increase of $16.4 billion in the first. Dividends increased $24.7 billion, compared with an increase of $23.0 billion; current- production undistributed profits increased $34.2 billion, in contrast to a decrease of $6.6 billion. Domestic profits of financial corporations increased $56.7 billion in the second quarter, in contrast to a decrease of $26.9 billion in the first. Domestic profits of nonfinancial corporations increased $25.3 billion in the second quarter, compared with an increase of $23.2 billion in the first. In the second quarter, real gross corporate value added increased, and profits per unit of real value added increased. The increase in profits per unit reflected an increase in unit prices that was partly offset by an increase in unit labor costs; unit nonlabor costs decreased slightly. The rest-of-the-world component of profits increased $16.2 billion in the second quarter, compared with an increase of $20.1 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 increased $120.0 billion in the second quarter, compared with an increase of $26.6 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 $7.8 billion in the second quarter (from -$227.9 billion to -$235.7 billion), in contrast to an increase of $9.1 billion in the first. The inventory valuation adjustment decreased $13.9 billion (from -$40.2 billion to -$54.1 billion), compared with a decrease of $19.2 billion. * * * BEA's national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements. * * * Next release -- September 27, 2007, at 8:30 A.M. EDT for: Gross Domestic Product: Second Quarter 2007 (Final) Corporate Profits: Second Quarter 2007 (Final) Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period [Quarters seasonally adjusted at annual rates] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2004 2005 2006 III 03 IV 03 I 04 II 04 III 04 IV 04 I 05 II 05 III 05 IV 05 I 06 II 06 III 06 IV 06 I 07r II 07r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP). 3.6 3.1 2.9 7.5 2.7 3.0 3.5 3.6 2.5 3.1 2.8 4.5 1.2 4.8 2.4 1.1 2.1 .6 4.0 Personal consumption expenditures... 3.6 3.2 3.1 5.8 2.3 4.4 2.4 3.5 4.2 2.4 3.5 4.1 1.2 4.4 2.4 2.8 3.9 3.7 1.4 Durable goods..................... 6.3 4.9 3.8 16.7 .7 5.8 1.9 7.8 7.0 2.2 11.3 6.2 -13.0 16.6 .8 5.6 3.9 8.8 1.7 Nondurable goods.................. 3.5 3.6 3.6 7.7 1.8 4.6 1.5 3.1 4.9 3.5 3.7 2.5 4.7 4.5 2.3 3.2 4.3 3.0 -.3 Services.......................... 3.2 2.7 2.7 2.9 2.8 4.1 3.0 2.9 3.4 1.9 1.8 4.4 2.6 2.1 2.7 2.0 3.7 3.1 2.3 Gross private domestic investment... 9.7 5.6 2.7 17.7 9.3 2.1 20.7 8.0 6.4 5.3 -3.9 7.0 13.4 4.3 .6 -4.1 -14.1 -8.2 4.7 Fixed investment.................. 7.3 6.9 2.4 13.6 5.5 -.2 12.9 9.3 7.3 4.0 7.9 8.0 2.3 7.9 -1.9 -4.7 -7.1 -4.4 3.3 Nonresidential.................. 5.8 7.1 6.6 9.4 2.8 -2.6 10.7 12.3 10.3 3.3 5.0 8.6 3.4 13.3 4.2 5.1 -1.4 2.1 11.1 Structures.................... 1.3 .5 8.4 -.8 -4.7 -.3 6.1 3.6 -.2 2.1 -1.6 -6.3 4.8 15.0 16.4 10.8 7.4 6.4 27.7 Equipment and software........ 7.4 9.6 5.9 13.2 5.6 -3.4 12.4 15.5 14.3 3.8 7.4 14.5 3.1 13.0 -.1 2.9 -4.9 .3 4.3 Residential..................... 10.0 6.6 -4.6 22.2 10.6 4.0 16.7 4.2 2.4 5.3 13.1 6.9 .5 -.7 -11.7 -20.4 -17.2 -16.3 -11.6 Change in private inventories..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports........................... 9.7 6.9 8.4 11.4 20.8 10.0 6.5 3.1 10.0 6.0 9.5 2.1 10.6 11.5 5.7 5.7 14.3 1.1 7.6 Goods........................... 9.0 7.5 9.9 8.8 19.8 7.4 7.2 6.2 7.2 5.8 13.6 1.9 12.6 15.5 6.5 7.4 9.6 .9 7.3 Services........................ 11.5 5.4 4.8 17.5 23.1 16.2 5.1 -3.4 16.8 6.5 .9 2.6 6.3 2.9 3.9 2.0 26.0 1.6 8.3 Imports........................... 11.3 5.9 5.9 3.7 17.6 12.3 15.2 4.8 13.8 2.1 .8 2.1 16.2 6.9 .9 5.4 1.6 3.9 -3.2 Goods........................... 11.3 6.6 6.0 .6 17.2 11.5 16.6 5.5 14.5 3.2 1.0 2.5 17.3 6.5 1.1 6.2 -.6 4.2 -3.1 Services........................ 11.5 2.3 5.2 21.2 19.6 16.5 8.9 1.8 10.5 -3.5 -.5 .0 10.3 9.5 -.1 1.3 14.2 2.3 -3.8 Government consumption expenditures and gross investment............... 1.4 .7 1.8 1.5 .7 1.5 1.3 1.6 -1.8 1.3 1.2 3.2 -1.9 4.9 1.0 .8 3.5 -.5 4.1 Federal........................... 4.2 1.5 2.2 .4 3.1 6.1 2.4 6.2 -4.6 2.8 .7 8.6 -6.2 8.4 -1.6 .9 7.3 -6.3 5.9 National defense................ 5.8 1.5 1.9 -5.3 8.1 8.1 2.0 10.9 -9.7 4.6 2.6 10.0 -11.7 6.8 2.3 -1.5 16.9 -10.8 8.6 Nondefense...................... 1.1 1.3 2.8 12.4 -6.0 2.3 3.2 -2.7 6.5 -.8 -3.0 5.8 5.8 11.9 -8.8 6.0 -10.0 3.8 .5 State and local................... -.2 .3 1.6 2.1 -.6 -1.0 .7 -1.1 -.1 .4 1.5 .0 .7 2.9 2.5 .7 1.3 3.0 3.0 Addenda: Final sales of domestic product... 3.3 3.3 2.8 6.9 2.1 2.6 2.4 3.8 2.7 2.9 4.8 4.6 -.5 5.4 2.0 1.0 3.5 1.3 3.7 Gross domestic purchases.......... 4.1 3.1 2.8 6.6 3.0 3.6 4.8 3.8 3.4 2.6 1.9 4.3 2.5 4.5 1.9 1.3 .8 1.1 2.4 Final sales to domestic purchasers....................... 3.8 3.3 2.7 6.1 2.5 3.2 3.7 4.0 3.6 2.4 3.7 4.5 .8 5.0 1.5 1.2 2.1 1.7 2.2 Gross national product (GNP)...... 3.8 3.0 2.8 7.3 3.5 3.6 2.6 3.9 1.5 3.6 2.7 5.1 .0 5.2 2.4 .5 2.6 .7 4.0 Disposable personal income........ 3.6 1.7 3.1 6.3 1.7 3.7 2.4 2.9 7.5 -3.3 2.5 -1.2 6.6 4.9 .2 1.7 6.2 5.4 .1 Current-dollar measures: GDP............................. 6.6 6.4 6.1 9.7 4.9 6.8 7.4 6.0 5.9 7.1 5.5 8.1 4.8 8.4 6.0 3.4 3.8 4.9 6.7 Final sales of domestic product. 6.2 6.6 6.1 9.1 4.4 6.4 6.2 6.1 6.0 6.9 7.5 8.3 3.0 9.0 5.5 3.4 5.2 5.5 6.5 Gross domestic purchases........ 7.3 6.9 6.1 9.1 4.9 8.0 9.2 6.7 7.2 6.3 5.5 9.1 6.3 7.3 6.2 3.8 .9 4.9 6.3 Final sales to domestic purchasers..................... 7.0 7.1 6.1 8.5 4.4 7.6 8.0 6.8 7.3 6.1 7.4 9.3 4.6 7.9 5.7 3.7 2.1 5.5 6.1 GNP............................. 6.8 6.3 6.0 9.6 5.8 7.4 6.5 6.3 4.8 7.6 5.4 8.7 3.5 8.8 6.0 2.8 4.3 4.9 6.7 Disposable personal income...... 6.4 4.7 5.9 8.9 3.2 7.3 6.3 4.9 10.8 -1.2 6.0 3.0 9.6 6.7 4.5 4.4 5.2 9.1 4.4 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates for the first quarter of 2007. 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] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2004 2005 2006 III 03 IV 03 I 04 II 04 III 04 IV 04 I 05 II 05 III 05 IV 05 I 06 II 06 III 06 IV 06 I 07 II 07r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Percent change at annual rate: Gross domestic product.......... 3.6 3.1 2.9 7.5 2.7 3.0 3.5 3.6 2.5 3.1 2.8 4.5 1.2 4.8 2.4 1.1 2.1 .6 4.0 Percentage points at annual rates: Personal consumption expenditures. 2.56 2.24 2.15 4.13 1.59 3.12 1.73 2.46 2.93 1.68 2.40 2.82 .84 3.00 1.63 1.88 2.68 2.56 1.03 Durable goods................... .53 .40 .31 1.39 .06 .49 .16 .64 .57 .18 .90 .51 -1.13 1.23 .07 .43 .30 .67 .14 Motor vehicles and parts...... .08 .00 -.11 .46 -.29 .09 -.11 .17 .23 -.27 .48 .20 -1.57 .48 -.04 .16 .00 .35 -.09 Furniture and household equipment.................... .35 .31 .35 .67 .27 .29 .27 .36 .25 .31 .28 .39 .35 .54 .17 .24 .25 .28 .13 Other......................... .10 .09 .07 .26 .08 .11 .00 .10 .09 .13 .14 -.08 .09 .22 -.06 .04 .05 .04 .10 Nondurable goods................ .71 .72 .74 1.53 .36 .92 .31 .62 .97 .71 .74 .50 .93 .91 .47 .64 .86 .61 -.07 Food.......................... .31 .38 .38 .61 .02 .59 .10 .21 .60 .31 .38 .49 .40 .47 .13 .24 .68 .16 -.14 Clothing and shoes............ .14 .17 .13 .31 -.02 .31 -.13 .15 .23 .18 .27 .00 .29 .11 .05 .14 .10 .22 .07 Gasoline, fuel oil, and other energy goods................. .03 -.02 -.01 .10 .06 .00 .04 -.03 .00 .05 -.11 -.11 .06 .02 .02 .05 -.15 .06 -.09 Other......................... .24 .19 .23 .52 .30 .03 .29 .29 .14 .17 .20 .13 .18 .31 .27 .20 .23 .17 .09 Services........................ 1.32 1.12 1.11 1.21 1.18 1.71 1.25 1.21 1.39 .79 .76 1.81 1.05 .86 1.10 .81 1.52 1.28 .96 Housing....................... .32 .33 .28 .35 .40 .35 .25 .29 .31 .36 .36 .36 .30 .30 .23 .18 .20 .26 .29 Household operation........... .10 .08 -.03 .02 .17 .13 .06 .06 .15 .04 -.02 .33 -.22 -.40 .17 .16 .13 .04 .02 Electricity and gas......... .02 .04 -.05 -.03 .12 .04 -.05 -.05 .15 .03 -.04 .29 -.21 -.42 .14 .17 .07 .03 .02 Other household operation... .08 .03 .02 .05 .05 .08 .11 .12 .01 .01 .02 .04 -.01 .02 .03 -.01 .07 .01 .01 Transportation................ .04 .03 .03 .03 .02 .04 .08 .02 .06 .02 .01 .01 .03 .06 -.03 .06 .11 .07 .11 Medical care.................. .36 .41 .40 .28 .28 .33 .45 .52 .40 .27 .38 .53 .53 .49 .26 .12 .34 .47 .36 Recreation.................... .14 .06 .09 .13 .16 .21 .12 .09 .03 .09 .03 .06 .08 .07 .02 .19 .30 .06 -.03 Other......................... .36 .21 .34 .40 .15 .66 .29 .22 .44 .00 .00 .53 .32 .34 .45 .11 .44 .39 .21 Gross private domestic investment. 1.48 .91 .45 2.56 1.39 .30 3.00 1.26 1.04 .89 -.64 1.15 2.13 .78 .13 -.70 -2.50 -1.36 .72 Fixed investment................ 1.10 1.09 .39 2.00 .83 -.07 1.88 1.41 1.14 .68 1.26 1.28 .38 1.27 -.32 -.80 -1.19 -.70 .51 Nonresidential................ .56 .70 .68 .92 .29 -.28 1.00 1.16 1.00 .36 .51 .87 .35 1.31 .44 .53 -.15 .22 1.12 Structures.................. .03 .01 .24 -.02 -.12 -.01 .15 .09 .00 .06 -.04 -.17 .12 .39 .45 .31 .23 .20 .82 Equipment and software...... .53 .69 .44 .95 .41 -.27 .85 1.07 1.01 .30 .55 1.04 .23 .92 -.01 .21 -.38 .02 .31 Information processing equipment and software... .33 .34 .27 .82 .70 .04 .15 .24 .41 .46 .32 .32 .26 .48 .05 .24 -.06 .56 .35 Computers and peripheral equipment.............. .08 .17 .12 .26 .21 -.16 .04 .19 .24 .13 .19 .11 .23 .06 .11 .09 .03 .25 .08 Software................ .14 .10 .06 .32 .20 .14 .00 .11 .17 .07 .14 .02 .05 .08 .03 .05 .04 .14 .15 Other................... .12 .08 .10 .23 .29 .05 .12 -.06 .00 .26 -.01 .19 -.01 .34 -.09 .10 -.12 .18 .11 Industrial equipment...... -.04 .09 .05 -.14 -.22 -.14 .09 .19 .06 .15 -.12 .23 .11 -.08 .17 -.04 -.08 -.04 .19 Transportation equipment.. .16 .13 .09 .01 -.13 -.07 .52 .43 .40 -.34 .14 .40 -.21 .46 -.24 .10 -.18 -.20 -.34 Other equipment........... .07 .12 .04 .26 .07 -.10 .09 .20 .13 .04 .21 .09 .07 .06 .00 -.09 -.05 -.30 .11 Residential................... .53 .39 -.29 1.08 .55 .21 .89 .24 .14 .32 .75 .42 .03 -.05 -.76 -1.33 -1.04 -.93 -.61 Change in private inventories... .39 -.18 .06 .56 .56 .37 1.12 -.14 -.11 .21 -1.90 -.14 1.74 -.49 .46 .10 -1.31 -.65 .21 Farm.......................... .06 -.07 .00 -.06 -.05 .28 .37 -.32 -.14 -.25 .13 .12 .01 -.04 -.23 .10 .25 .04 -.03 Nonfarm....................... .32 -.11 .06 .62 .60 .08 .75 .18 .03 .46 -2.04 -.26 1.73 -.45 .69 .01 -1.56 -.69 .24 Net exports of goods and services. -.68 -.23 -.08 .51 -.47 -.75 -1.50 -.42 -1.07 .26 .83 -.10 -1.41 .13 .49 -.25 1.25 -.51 1.42 Exports......................... .93 .70 .88 1.02 1.81 .95 .64 .31 .97 .60 .95 .22 1.07 1.19 .61 .62 1.51 .13 .86 Goods......................... .60 .53 .73 .55 1.20 .49 .48 .42 .49 .40 .92 .14 .87 1.10 .49 .56 .73 .07 .58 Services...................... .33 .17 .16 .47 .61 .46 .16 -.11 .49 .20 .03 .08 .20 .10 .13 .07 .78 .05 .28 Imports......................... -1.61 -.92 -.96 -.51 -2.29 -1.70 -2.14 -.73 -2.04 -.34 -.12 -.32 -2.47 -1.07 -.12 -.88 -.26 -.63 .56 Goods......................... -1.33 -.86 -.83 -.07 -1.86 -1.32 -1.92 -.69 -1.78 -.43 -.13 -.32 -2.22 -.83 -.12 -.84 .09 -.57 .46 Services...................... -.27 -.06 -.13 -.44 -.43 -.37 -.21 -.05 -.26 .09 .01 .00 -.26 -.24 .00 -.03 -.35 -.06 .11 Government consumption expenditures and gross investment............. .27 .14 .35 .29 .14 .29 .25 .30 -.35 .25 .22 .60 -.37 .92 .18 .14 .66 -.09 .79 Federal......................... .29 .11 .15 .03 .21 .41 .17 .43 -.33 .19 .05 .59 -.46 .57 -.11 .06 .50 -.46 .41 National defense.............. .27 .07 .09 -.25 .35 .36 .09 .49 -.48 .22 .12 .46 -.59 .31 .11 -.07 .74 -.54 .40 Consumption expenditures.... .21 .04 .05 -.32 .31 .35 .03 .34 -.45 .26 .01 .41 -.57 .30 -.05 .00 .60 -.40 .35 Gross investment............ .06 .03 .04 .07 .05 .01 .06 .15 -.04 -.05 .11 .05 -.02 .01 .15 -.07 .15 -.14 .04 Nondefense.................... .03 .03 .06 .28 -.14 .06 .08 -.06 .15 -.02 -.07 .13 .13 .27 -.22 .14 -.24 .08 .01 Consumption expenditures..... .02 .01 .05 .27 -.12 .07 .03 -.04 .12 -.02 -.08 .07 .06 .23 -.15 .13 -.23 .14 -.02 Gross investment............. .00 .02 .02 .01 -.03 -.02 .05 -.03 .03 .00 .01 .06 .07 .04 -.07 .01 -.02 -.06 .03 State and local................. -.02 .04 .19 .26 -.07 -.12 .09 -.13 -.01 .05 .17 .01 .09 .35 .29 .08 .16 .36 .38 Consumption expenditures.... .01 .07 .13 -.04 .07 -.04 .02 .04 .11 .02 .09 .12 .09 .15 .11 .18 .19 .20 .21 Gross investment............ -.03 -.03 .06 .30 -.15 -.08 .07 -.17 -.12 .03 .08 -.11 .00 .20 .18 -.10 -.03 .17 .17 Addenda: Goods........................... 1.50 1.36 1.53 5.00 .81 .68 1.10 2.06 1.18 1.32 1.23 1.83 .49 2.95 1.45 1.06 .36 .06 1.71 Services........................ 1.62 1.36 1.36 1.15 1.63 2.17 1.27 1.40 1.41 1.34 .82 2.50 .56 1.39 1.15 1.15 2.50 1.21 1.89 Structures...................... .51 .35 -.01 1.33 .22 .10 1.11 .14 -.03 .42 .76 .14 .14 .48 -.16 -1.14 -.77 -.68 .36 Motor vehicle output............ .14 .14 -.04 .30 -.23 .29 -.21 .87 -.34 .18 .16 .92 -1.21 .51 -.37 .44 -.74 .18 .02 Final sales of computers........ .04 .22 .13 .50 .15 -.28 -.04 .13 .29 .24 .31 .15 .22 .05 .13 .03 .16 -.01 .21 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 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 -------------------------------------------- -------------------------------------------- ------------------------- 2006 II 06 III 06 IV 06 I 07 II 07r 2006 II 06 III 06 IV 06 I 07 II 07r 2006 I 07 II 07r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product....... 13,194.7 13,155.0 13,266.9 13,392.3 13,551.9 13,774.7 11,319.4 11,306.7 11,336.7 11,395.5 11,412.6 11,523.8 316.0 17.1 111.2 Personal consumption expenditures. 9,224.5 9,183.9 9,305.7 9,373.7 9,540.5 9,674.4 8,044.1 8,009.3 8,063.8 8,141.2 8,215.7 8,245.2 240.5 74.5 29.5 Durable goods................... 1,048.9 1,042.8 1,053.8 1,056.5 1,074.0 1,074.8 1,180.5 1,170.2 1,186.3 1,197.6 1,223.2 1,228.4 43.1 25.6 5.2 Motor vehicles and parts...... 434.2 431.8 437.6 434.8 444.5 441.5 437.3 434.3 439.5 439.6 451.5 448.3 -14.0 11.9 -3.2 Furniture and household equipment.................... 404.1 401.8 405.1 409.0 414.2 414.5 550.9 544.4 555.4 566.9 579.9 585.9 58.7 13.0 6.0 Other......................... 210.6 209.2 211.1 212.8 215.3 218.8 213.9 212.4 213.6 215.2 216.6 220.1 8.4 1.4 3.5 Nondurable goods................ 2,688.0 2,692.2 2,732.4 2,705.4 2,759.4 2,823.7 2,337.7 2,325.6 2,343.9 2,368.8 2,386.6 2,384.5 82.3 17.8 -2.1 Food.......................... 1,259.3 1,245.9 1,263.2 1,291.7 1,312.2 1,322.7 1,091.8 1,084.4 1,091.4 1,110.7 1,115.3 1,111.4 41.8 4.6 -3.9 Clothing and shoes............ 357.2 354.9 359.6 363.2 371.1 368.5 391.1 388.0 393.3 397.0 405.1 407.6 18.5 8.1 2.5 Gasoline, fuel oil, and other energy goods................. 340.1 363.3 373.1 306.3 320.9 374.7 198.6 199.0 199.9 197.0 198.2 196.5 -.6 1.2 -1.7 Other......................... 731.4 728.1 736.5 744.3 755.1 757.8 666.2 663.4 669.5 676.5 681.7 684.5 27.1 5.2 2.8 Services........................ 5,487.6 5,448.9 5,519.5 5,611.8 5,707.1 5,775.9 4,545.5 4,531.6 4,554.0 4,595.5 4,630.7 4,656.7 118.2 35.2 26.0 Housing....................... 1,381.3 1,371.1 1,392.5 1,413.9 1,435.1 1,455.4 1,148.3 1,146.0 1,151.0 1,156.6 1,163.7 1,171.6 30.0 7.1 7.9 Household operation........... 501.6 496.7 503.3 509.7 520.0 525.1 412.9 410.9 415.4 419.1 420.1 420.7 -3.6 1.0 .6 Electricity and gas......... 209.8 206.6 211.3 212.7 220.6 223.3 148.5 147.0 150.9 152.5 153.1 153.5 -4.7 .6 .4 Other household operation... 291.8 290.1 292.1 297.0 299.4 301.8 265.1 264.9 264.7 266.8 267.1 267.2 2.0 .3 .1 Transportation................ 340.6 338.4 342.5 346.8 349.6 354.7 291.2 289.5 291.0 294.1 296.0 299.1 3.4 1.9 3.1 Medical care.................. 1,587.7 1,578.6 1,596.1 1,617.9 1,656.9 1,677.1 1,300.3 1,298.2 1,301.4 1,310.5 1,323.2 1,332.8 42.1 12.7 9.6 Recreation.................... 381.0 375.7 384.4 392.8 395.3 398.2 321.3 316.8 321.9 330.3 332.0 331.0 9.7 1.7 -1.0 Other......................... 1,295.3 1,288.4 1,300.5 1,330.7 1,350.1 1,365.4 1,069.9 1,068.6 1,071.6 1,083.5 1,094.1 1,099.8 36.2 10.6 5.7 Gross private domestic investment. 2,209.2 2,239.0 2,224.1 2,152.4 2,117.3 2,140.3 1,919.5 1,948.5 1,928.2 1,856.2 1,816.9 1,837.7 50.2 -39.3 20.8 Fixed investment................ 2,162.5 2,179.5 2,161.3 2,132.4 2,118.9 2,135.7 1,874.7 1,892.3 1,869.6 1,835.5 1,815.2 1,830.0 43.3 -20.3 14.8 Nonresidential................ 1,397.7 1,391.2 1,415.2 1,417.1 1,431.4 1,469.1 1,306.8 1,303.2 1,319.4 1,314.8 1,321.7 1,356.9 81.0 6.9 35.2 Structures.................. 405.1 400.2 416.1 428.4 439.6 465.4 268.6 266.4 273.3 278.3 282.6 300.4 20.8 4.3 17.8 Equipment and software...... 992.6 991.1 999.1 988.7 991.8 1,003.7 1,050.6 1,050.1 1,057.6 1,044.4 1,045.3 1,056.2 58.8 .9 10.9 Information processing equipment and software... 480.9 479.0 484.9 480.5 497.6 507.5 595.9 592.1 602.0 599.6 623.3 638.1 41.6 23.7 14.8 Computers and peripheral equipment.............. 91.3 91.7 91.6 90.4 96.6 96.5 ..... ..... ..... ..... ..... ..... ..... ..... ..... Software................ 203.3 202.6 204.9 205.9 210.5 216.0 213.0 212.1 213.8 215.1 219.9 225.2 7.3 4.8 5.3 Other................... 186.2 184.7 188.4 184.3 190.5 194.9 204.8 203.3 207.1 202.6 209.2 213.4 13.3 6.6 4.2 Industrial equipment...... 166.7 168.5 169.2 167.5 168.1 175.9 149.6 152.0 150.9 148.4 147.3 152.8 5.3 -1.1 5.5 Transportation equipment.. 171.9 169.5 172.4 168.0 162.9 152.7 155.2 153.3 156.3 150.9 144.8 134.6 10.1 -6.1 -10.2 Other equipment........... 173.2 174.0 172.6 172.7 163.2 167.5 156.2 157.9 155.2 153.7 144.8 148.1 4.3 -8.9 3.3 Residential................... 764.8 788.2 746.1 715.3 687.5 666.5 569.5 587.5 555.0 529.4 506.3 491.0 -27.6 -23.1 -15.3 Change in private inventories... 46.7 59.5 62.8 20.0 -1.6 4.7 40.3 51.4 53.9 17.4 .1 5.4 7.1 -17.3 5.3 Farm.......................... -1.2 -6.6 -3.7 4.7 5.5 4.8 -.9 -5.5 -2.9 3.8 5.0 4.1 -.5 1.2 -.9 Nonfarm....................... 47.8 66.1 66.5 15.3 -7.0 -.1 41.7 57.6 57.6 13.6 -5.8 .3 7.7 -19.4 6.1 Net exports of goods and services. -762.0 -780.4 -799.1 -705.3 -714.2 -710.8 -624.5 -626.6 -633.8 -597.3 -612.1 -571.1 -6.5 -14.8 41.0 Exports......................... 1,467.6 1,447.4 1,484.5 1,531.9 1,549.9 1,598.4 1,304.1 1,288.4 1,306.6 1,350.9 1,354.7 1,379.6 100.7 3.8 24.9 Goods......................... 1,030.5 1,016.4 1,047.8 1,072.3 1,084.0 1,116.1 927.4 917.3 933.7 955.4 957.6 974.6 83.9 2.2 17.0 Services...................... 437.1 431.0 436.7 459.6 465.9 482.3 377.1 371.5 373.4 395.6 397.2 405.2 17.3 1.6 8.0 Imports......................... 2,229.6 2,227.8 2,283.6 2,237.2 2,264.0 2,309.2 1,928.6 1,915.0 1,940.4 1,948.2 1,966.8 1,950.7 107.1 18.6 -16.1 Goods......................... 1,880.4 1,879.8 1,933.3 1,879.9 1,902.7 1,945.2 1,646.9 1,636.3 1,661.0 1,658.7 1,675.6 1,662.4 93.3 16.9 -13.2 Services...................... 349.2 348.0 350.3 357.3 361.4 364.0 283.8 281.0 281.9 291.4 293.1 290.2 14.0 1.7 -2.9 Government consumption expenditures and gross investment............. 2,523.0 2,512.5 2,536.1 2,571.4 2,608.3 2,670.7 1,981.4 1,976.5 1,980.2 1,997.2 1,994.7 2,014.7 35.1 -2.5 20.0 Federal......................... 932.5 926.9 932.0 949.7 946.6 969.2 742.3 737.4 739.2 752.3 740.2 750.8 15.8 -12.1 10.6 National defense.............. 624.3 620.6 620.7 645.2 634.8 654.5 491.5 488.2 486.4 505.8 491.6 501.8 9.1 -14.2 10.2 Consumption expenditures.... 544.8 540.0 542.0 561.5 555.7 573.9 416.6 412.5 412.6 427.7 417.4 426.3 4.9 -10.3 8.9 Gross investment............ 79.5 80.6 78.7 83.7 79.1 80.7 76.6 77.8 75.5 80.1 75.6 77.0 4.9 -4.5 1.4 Nondefense.................... 308.2 306.3 311.3 304.5 311.7 314.7 250.7 249.0 252.7 246.1 248.4 248.7 6.8 2.3 .3 Consumption expenditures.... 268.0 266.7 271.3 264.9 274.0 276.0 212.6 211.4 214.8 208.8 212.5 212.0 4.7 3.7 -.5 Gross investment............ 40.2 39.6 40.0 39.6 37.7 38.7 38.5 38.0 38.3 37.8 35.9 36.9 2.3 -1.9 1.0 State and local................. 1,590.5 1,585.7 1,604.1 1,621.7 1,661.7 1,701.4 1,239.0 1,238.9 1,240.9 1,244.9 1,254.2 1,263.7 19.4 9.3 9.5 Consumption expenditures.... 1,276.5 1,270.0 1,287.7 1,300.8 1,326.7 1,357.0 990.9 988.1 992.7 997.5 1,002.5 1,007.7 13.2 5.0 5.2 Gross investment............ 314.0 315.7 316.4 320.9 335.0 344.4 248.0 250.7 248.1 247.3 251.5 255.8 6.2 4.2 4.3 Residual.......................... ..... ..... ..... ..... ..... ..... -93.4 -86.5 -99.3 -108.2 -130.7 -135.5 ..... ..... ..... Addenda: Final sales of domestic product. 13,148.0 13,095.5 13,204.1 13,372.3 13,553.5 13,770.0 11,275.9 11,252.1 11,279.7 11,375.8 11,411.6 11,516.9 309.0 35.8 105.3 Gross domestic purchases........ 13,956.7 13,935.4 14,065.9 14,097.6 14,266.1 14,485.4 11,937.1 11,926.1 11,963.6 11,987.1 12,018.7 12,089.9 324.0 31.6 71.2 Final sales to domestic purchasers..................... 13,910.1 13,875.9 14,003.2 14,077.6 14,267.7 14,480.7 11,893.4 11,871.3 11,906.4 11,967.3 12,017.4 12,082.7 317.0 50.1 65.3 Gross domestic product.......... 13,194.7 13,155.0 13,266.9 13,392.3 13,551.9 13,774.7 11,319.4 11,306.7 11,336.7 11,395.5 11,412.6 11,523.8 316.0 17.1 111.2 Plus: Income receipts from the rest of the world.......... 691.4 688.9 709.7 733.8 752.2 801.0 595.0 593.2 607.9 628.3 638.2 673.1 112.5 9.9 34.9 Less: Income payments to the rest of the world.......... 633.4 625.0 664.7 673.7 689.0 736.6 543.6 536.7 568.0 575.1 583.2 617.5 122.8 8.1 34.3 Equals: Gross national product.. 13,252.7 13,218.9 13,311.9 13,452.4 13,615.1 13,839.1 11,370.1 11,362.5 11,375.9 11,447.8 11,466.7 11,578.6 305.4 18.9 111.9 Net domestic product............ 11,579.5 11,552.2 11,638.1 11,737.9 11,881.0 12,089.2 9,872.8 9,867.0 9,884.7 9,928.3 9,937.7 10,040.7 358.1 9.4 103.0 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 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] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2004 2005 2006 III 03 IV 03 I 04 II 04 III 04 IV 04 I 05 II 05 III 05 IV 05 I 06 II 06 III 06 IV 06 I 07 II 07r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP). 2.9 3.2 3.2 2.1 2.2 3.7 3.8 2.3 3.2 3.9 2.6 3.5 3.5 3.4 3.5 2.4 1.7 4.2 2.7 Personal consumption expenditures... 2.6 2.9 2.8 2.4 1.5 3.5 3.8 2.0 3.0 2.2 3.4 4.3 2.8 1.7 4.3 2.6 -.9 3.5 4.2 Durable goods..................... -1.8 -.7 -1.3 -4.0 -3.5 -.5 .3 -2.5 .2 .1 -.4 -2.8 -1.1 -1.0 -.7 -1.3 -2.7 -1.9 -1.4 Nondurable goods.................. 3.3 3.7 3.1 3.9 .5 5.3 6.2 1.4 4.7 .3 5.0 9.5 .8 .3 8.6 2.8 -7.9 5.0 10.0 Services.......................... 3.2 3.4 3.4 3.0 3.0 3.5 3.4 3.1 2.8 3.6 3.4 3.3 4.6 3.0 3.2 3.2 3.0 3.8 2.6 Gross private domestic investment... 3.4 4.2 3.5 1.3 3.5 4.1 4.7 3.9 3.9 5.2 2.8 4.0 5.8 4.0 2.5 1.6 2.2 2.0 -.2 Fixed investment.................. 3.4 4.3 3.5 1.3 3.5 4.1 4.7 3.9 3.9 5.3 2.9 4.2 6.0 3.9 2.4 1.5 2.0 1.9 -.1 Nonresidential.................. 1.3 2.9 3.1 .7 1.4 1.1 2.4 1.3 2.5 4.5 2.4 1.6 4.6 3.9 2.8 1.9 2.0 1.9 -.1 Structures.................... 6.2 11.7 11.7 2.3 4.2 6.8 7.6 10.1 12.0 12.8 8.7 13.8 17.6 13.0 10.7 5.6 4.6 4.1 -1.5 Equipment and software........ -.3 -.1 .0 .1 .4 -.8 .7 -1.7 -.6 1.8 .3 -2.5 .2 .6 -.2 .4 .8 1.0 .6 Residential..................... 7.3 6.7 4.4 2.6 7.7 9.8 8.8 8.5 6.2 6.6 3.6 8.7 8.5 3.9 1.8 .8 2.1 2.0 -.1 Change in private inventories..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports........................... 3.5 3.6 3.4 .9 3.0 5.5 4.8 1.9 4.2 4.6 3.6 2.5 3.0 2.7 6.0 4.6 -.8 3.6 5.2 Goods........................... 3.7 3.1 3.3 -.7 4.1 6.3 5.2 1.0 3.6 4.3 3.0 1.3 2.3 3.0 6.3 5.2 .1 3.5 4.8 Services........................ 3.2 4.9 3.7 4.7 .7 3.9 3.8 3.8 5.5 5.0 4.9 5.2 4.8 2.2 5.5 3.3 -2.7 3.9 6.1 Imports........................... 4.9 6.3 4.0 2.6 .4 9.2 7.3 5.3 6.9 2.2 9.7 10.3 4.3 -1.5 10.1 4.7 -9.4 1.0 11.8 Goods........................... 4.9 6.5 4.2 2.5 .5 10.0 7.9 5.0 7.0 2.0 10.1 10.9 4.9 -1.9 10.4 5.3 -10.1 .7 12.8 Services........................ 4.4 5.6 3.1 3.1 .0 4.9 4.7 6.7 6.0 3.5 7.7 7.5 1.3 .5 8.4 1.4 -5.3 2.3 7.0 Government consumption expenditures and gross investment............... 4.5 5.8 4.9 2.5 2.2 7.2 5.0 4.8 5.7 7.5 4.6 6.4 5.0 5.1 5.7 3.0 2.1 6.4 5.6 Federal........................... 4.7 4.8 3.9 1.0 1.1 11.6 5.5 2.5 2.6 11.5 2.3 3.4 .8 9.1 4.0 1.3 .5 5.3 3.8 National defense................ 4.7 5.3 4.1 1.2 1.3 10.6 5.6 2.9 3.1 12.2 2.5 3.5 1.3 9.3 4.2 1.6 -.1 5.0 4.1 Nondefense...................... 4.9 4.0 3.5 .6 .6 13.8 5.2 1.4 1.7 10.1 1.8 3.2 -.2 8.9 3.5 .7 1.7 5.9 3.4 State and local................... 4.3 6.4 5.4 3.3 2.9 4.6 4.7 6.2 7.6 5.2 6.1 8.1 7.6 2.7 6.7 4.0 3.1 7.0 6.6 Addenda: Final sales of domestic product... 2.9 3.2 3.2 2.1 2.2 3.7 3.8 2.3 3.2 3.9 2.6 3.5 3.5 3.4 3.5 2.3 1.7 4.2 2.7 Gross domestic purchases.......... 3.1 3.7 3.3 2.2 1.9 4.3 4.2 2.8 3.6 3.6 3.5 4.6 3.7 2.7 4.2 2.5 .1 3.8 3.8 Final sales to domestic purchasers....................... 3.1 3.7 3.3 2.2 1.9 4.3 4.2 2.7 3.6 3.6 3.5 4.6 3.7 2.7 4.2 2.5 .1 3.8 3.8 Gross national product (GNP)...... 2.9 3.2 3.1 2.1 2.2 3.7 3.8 2.3 3.2 3.9 2.6 3.5 3.5 3.4 3.5 2.4 1.7 4.2 2.7 Implicit price deflators: GDP............................. 2.9 3.2 3.2 2.1 2.2 3.7 3.8 2.3 3.2 3.9 2.6 3.5 3.5 3.4 3.5 2.4 1.7 4.2 2.7 Gross domestic purchases........ 3.1 3.6 3.3 2.3 1.9 4.3 4.2 2.7 3.7 3.6 3.6 4.6 3.7 2.7 4.2 2.5 .1 3.8 3.8 GNP............................. 2.9 3.2 3.2 2.1 2.2 3.7 3.8 2.3 3.2 3.9 2.6 3.5 3.5 3.4 3.5 2.4 1.7 4.2 2.7 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 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 --------------------------------------------------- 2004 2005 2006 II 06 III 06 IV 06 I 07 II 07r ----------------------------------------------------------------------------------------------------------------------------------- Gross domestic product............. 108.748 112.086 115.304 115.175 115.481 116.080 116.254 117.387 Personal consumption expenditures.......... 112.197 115.791 119.359 118.843 119.652 120.801 121.906 122.343 Durable goods............................ 125.652 131.748 136.735 135.542 137.413 138.720 141.680 142.291 Nondurable goods......................... 111.833 115.828 120.051 119.434 120.370 121.650 122.563 122.458 Services................................. 109.726 112.687 115.696 115.341 115.911 116.969 117.865 118.527 Gross private domestic investment.......... 102.003 107.709 110.607 112.274 111.106 106.955 104.690 105.890 Fixed investment......................... 102.012 109.080 111.657 112.705 111.354 109.325 108.113 108.993 Nonresidential......................... 92.873 99.490 106.062 105.770 107.090 106.711 107.277 110.128 Structures........................... 78.760 79.127 85.770 85.063 87.270 88.849 90.241 95.928 Equipment and software............... 98.505 107.935 114.332 114.276 115.100 113.662 113.753 114.945 Residential............................ 125.343 133.608 127.433 131.465 124.190 118.462 113.301 109.873 Change in private inventories............ ..... ..... ..... ..... ..... ..... ..... ..... Exports of goods and services.............. 102.723 109.775 118.957 117.528 119.182 123.222 123.568 125.846 Imports of goods and services.............. 116.546 123.425 130.683 129.764 131.483 132.014 133.272 132.182 Government consumption expenditures and gross investment.......................... 112.210 113.050 115.092 114.807 115.022 116.007 115.865 117.026 Federal.................................. 123.693 125.524 128.255 127.414 127.708 129.977 127.886 129.727 State and local.......................... 106.384 106.721 108.418 108.407 108.584 108.935 109.748 110.574 Addenda: Final sales of domestic product.......... 108.804 112.360 115.526 115.282 115.565 116.550 116.916 117.995 Gross domestic purchases................. 110.444 113.894 117.071 116.963 117.331 117.562 117.871 118.570 Final sales to domestic purchasers....... 110.505 114.166 117.292 117.074 117.421 118.021 118.515 119.159 Gross national product................... 109.031 112.265 115.363 115.286 115.422 116.152 116.344 117.479 ----------------------------------------------------------------------------------------------------------------------------------- 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 --------------------------------------------------- 2004 2005 2006 II 06 III 06 IV 06 I 07 II 07r ----------------------------------------------------------------------------------------------------------------------------------- Gross domestic product............. 109.462 113.005 116.568 116.350 117.030 117.527 118.750 119.538 Personal consumption expenditures (PCE)..................................... 108.392 111.588 114.675 114.670 115.406 115.143 116.129 117.339 Durable goods............................ 90.696 90.018 88.857 89.110 88.827 88.213 87.799 87.489 Nondurable goods......................... 107.626 111.561 114.989 115.763 116.576 114.210 115.620 118.418 Services................................. 112.929 116.726 120.725 120.252 121.209 122.122 123.252 124.041 Gross private domestic investment.......... 106.686 111.155 115.090 114.891 115.335 115.958 116.532 116.478 Fixed investment......................... 106.845 111.404 115.352 115.169 115.592 116.162 116.718 116.691 Nonresidential......................... 100.896 103.778 106.961 106.764 107.267 107.789 108.301 108.277 Structures........................... 120.912 135.013 150.806 150.294 152.344 154.071 155.637 155.034 Equipment and software............... 94.600 94.527 94.485 94.379 94.470 94.667 94.892 95.029 Residential............................ 120.587 128.653 134.288 134.137 134.390 135.076 135.736 135.701 Change in private inventories............ ..... ..... ..... ..... ..... ..... ..... ..... Exports of goods and services.............. 104.997 108.803 112.537 112.359 113.641 113.424 114.433 115.879 Imports of goods and services.............. 104.526 111.117 115.610 116.339 117.689 114.834 115.114 118.378 Government consumption expenditures and gross investment.......................... 114.754 121.435 127.334 127.125 128.076 128.757 130.765 132.563 Federal.................................. 115.322 120.914 125.622 125.686 126.097 126.244 127.886 129.092 State and local.......................... 114.431 121.758 128.370 127.998 129.271 130.272 132.499 134.648 Addenda: PCE excluding food and energy............ 107.338 109.670 112.130 111.871 112.519 113.052 113.730 114.106 Market-based PCE\1\...................... 107.386 110.307 113.168 113.240 113.926 113.456 114.472 115.761 Market-based PCE excluding food and energy\1\........................... 105.857 107.667 109.717 109.500 110.072 110.507 111.161 111.466 Final sales of domestic product.......... 109.487 113.040 116.603 116.388 117.065 117.553 118.773 119.566 Gross domestic purchases................. 109.235 113.225 116.920 116.850 117.575 117.609 118.702 119.819 Final sales to domestic purchasers....... 109.259 113.261 116.956 116.890 117.612 117.636 118.727 119.848 Gross national product................... 109.456 112.999 116.558 116.342 117.022 117.515 118.740 119.529 Implicit price deflators: Gross domestic product................. 109.462 113.000 116.567 116.347 117.026 117.522 118.745 119.532 Final sales of domestic product........ 109.487 113.040 116.603 116.383 117.061 117.550 118.770 119.563 Gross domestic purchases............... 109.234 113.221 116.919 116.848 117.573 117.606 118.700 119.814 Final sales to domestic purchasers..... 109.259 113.261 116.956 116.886 117.610 117.634 118.725 119.847 Gross national product................. 109.455 112.994 116.558 116.338 117.019 117.511 118.736 119.523 ----------------------------------------------------------------------------------------------------------------------------------- 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 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP).... -.2 3.3 2.7 4.0 2.5 3.7 4.5 4.2 4.5 3.7 .8 1.6 2.5 3.6 3.1 2.9 Personal consumption expenditures...... .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 3.6 3.2 3.1 Durable goods........................ -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 6.3 4.9 3.8 Nondurable goods..................... -.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 3.5 3.6 3.6 Services............................. 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 3.2 2.7 2.7 Gross private domestic investment...... -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 9.7 5.6 2.7 Fixed investment..................... -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 6.9 2.4 Nonresidential..................... -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 5.8 7.1 6.6 Structures....................... -11.1 -6.0 -.7 1.8 6.4 5.6 7.3 5.1 -.4 6.8 -2.3 -17.1 -4.1 1.3 .5 8.4 Equipment and software........... -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 7.4 9.6 5.9 Residential........................ -9.6 13.8 8.2 9.6 -3.2 8.0 1.9 7.6 6.0 .8 .4 4.8 8.4 10.0 6.6 -4.6 Change in private inventories........ ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services...... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports.............................. 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 9.7 6.9 8.4 Goods.............................. 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 9.9 Services........................... 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 11.5 5.4 4.8 Imports.............................. -.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 11.3 5.9 5.9 Goods.............................. -.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 11.3 6.6 6.0 Services........................... -2.6 -2.6 2.9 5.7 3.3 5.5 9.4 11.4 6.9 11.1 -.3 2.1 .0 11.5 2.3 5.2 Government consumption expenditures and gross investment.................. 1.1 .5 -.9 .0 .5 1.0 1.9 1.9 3.9 2.1 3.4 4.4 2.5 1.4 .7 1.8 Federal.............................. -.2 -1.7 -4.2 -3.7 -2.7 -1.2 -1.0 -1.1 2.2 .9 3.9 7.0 6.8 4.2 1.5 2.2 National defense................... -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 5.8 1.5 1.9 Nondefense......................... 2.4 6.9 -.7 -1.2 -.4 -.7 2.6 .7 2.8 3.5 3.9 6.3 3.4 1.1 1.3 2.8 State and local...................... 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 -.2 .3 1.6 Addenda: Final sales of domestic product...... .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 3.3 3.3 2.8 Gross domestic purchases............. -.8 3.3 3.2 4.4 2.4 3.8 4.8 5.3 5.3 4.4 .9 2.2 2.8 4.1 3.1 2.8 Final sales to domestic purchasers... -.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 3.8 3.3 2.7 Gross national product............... -.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 3.0 2.8 Real disposable personal income...... .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 1.7 3.1 Price indexes: Gross domestic purchases........... 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 3.7 3.3 Gross domestic purchases excluding food and energy................... 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 3.1 2.9 GDP................................ 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 2.9 3.2 3.2 GDP excluding food and energy...... 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 3.2 3.1 Personal consumption expenditures.. 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 2.8 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- III 03 IV 03 I 04 II 04 III 04 IV 04 I 05 II 05 III 05 IV 05 I 06 II 06 III 06 IV 06 I 07r II 07r ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP).... 3.1 3.7 4.1 4.1 3.2 3.1 3.2 3.0 3.2 2.9 3.3 3.2 2.4 2.6 1.5 1.9 Personal consumption expenditures (PCE)................................. 3.2 3.4 4.0 3.7 3.2 3.7 3.1 3.4 3.5 2.8 3.3 3.0 2.7 3.4 3.2 2.9 Durable goods........................ 6.7 8.3 9.8 6.1 4.0 5.6 4.7 7.0 6.6 1.2 4.6 2.1 2.0 6.6 4.7 5.0 Nondurable goods..................... 4.3 3.9 4.1 3.9 2.8 3.5 3.3 3.8 3.6 3.6 3.8 3.5 3.7 3.6 3.2 2.5 Services............................. 2.0 2.2 2.9 3.2 3.2 3.3 2.8 2.5 2.9 2.7 2.7 3.0 2.4 2.6 2.9 2.8 Gross private domestic investment...... 4.4 7.0 7.9 12.2 9.8 9.1 9.9 3.8 3.6 5.3 5.0 6.2 3.4 -3.6 -6.6 -5.7 Fixed investment..................... 5.4 7.2 7.3 7.8 6.8 7.2 8.3 7.1 6.8 5.5 6.5 4.0 .8 -1.6 -4.5 -3.3 Nonresidential..................... 2.9 4.9 4.9 4.9 5.6 7.5 9.1 7.7 6.8 5.1 7.5 7.3 6.4 5.2 2.5 4.1 Structures....................... .1 .2 2.0 .0 1.1 2.3 2.9 1.0 -1.6 -.3 2.7 7.1 11.6 12.3 10.2 12.8 Equipment and software........... 3.9 6.6 6.0 6.7 7.3 9.4 11.4 10.1 9.9 7.1 9.4 7.4 4.6 2.5 -.5 .6 Residential........................ 10.6 11.7 11.6 13.2 8.8 6.7 7.0 6.2 6.9 6.4 4.8 -1.5 -8.5 -12.8 -16.5 -16.4 Change in private inventories........ ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Net exports of goods and services...... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... ..... Exports.............................. .1 5.8 9.8 12.0 9.9 7.4 6.4 7.1 6.9 7.0 8.4 7.4 8.4 9.3 6.6 7.1 Goods.............................. -.1 7.1 8.4 10.7 10.0 7.0 6.6 8.1 7.0 8.3 10.7 9.0 10.4 9.7 6.1 6.2 Services........................... .5 3.0 13.0 15.3 9.8 8.3 6.0 4.9 6.6 4.1 3.2 3.9 3.8 8.3 7.9 9.1 Imports.............................. 2.8 4.8 9.3 12.1 12.4 11.5 8.8 5.3 4.6 5.1 6.3 6.4 7.2 3.7 2.9 1.9 Goods.............................. 3.2 5.3 9.3 11.3 12.6 11.9 9.8 5.9 5.2 5.8 6.6 6.7 7.6 3.2 2.7 1.6 Services........................... 1.0 2.2 9.2 16.4 11.5 9.3 4.3 1.9 1.5 1.4 4.7 4.8 5.2 6.1 4.3 3.3 Government consumption expenditures and gross investment.................. 2.7 1.7 2.5 1.3 1.3 .7 .6 .6 .9 .9 1.8 1.8 1.2 2.5 1.2 1.9 Federal.............................. 7.3 5.5 7.1 3.0 4.4 2.4 1.6 1.2 1.8 1.3 2.7 2.1 .3 3.7 .0 1.8 National defense................... 9.1 7.5 10.8 3.1 7.2 2.5 1.7 1.8 1.6 1.1 1.6 1.5 -1.3 5.9 1.2 2.8 Nondefense......................... 4.0 1.9 .3 2.8 -.9 2.3 1.5 -.1 2.1 1.9 5.0 3.4 3.4 -.7 -2.5 -.1 State and local...................... .3 -.4 -.1 .3 -.5 -.4 .0 .2 .5 .7 1.3 1.5 1.7 1.8 1.9 2.0 Addenda: Final sales of domestic product...... 3.2 3.7 4.0 3.5 2.7 2.8 2.9 3.5 3.7 2.9 3.5 2.8 1.9 3.0 1.9 2.4 Gross domestic purchases............. 3.3 3.6 4.3 4.5 3.8 3.9 3.7 2.9 3.1 2.8 3.3 3.3 2.5 2.1 1.2 1.4 Final sales to domestic purchasers... 3.4 3.7 4.2 3.9 3.3 3.6 3.4 3.4 3.5 2.9 3.5 2.9 2.1 2.4 1.6 1.8 Gross national product............... 3.3 3.9 4.6 4.2 3.4 2.9 2.9 2.9 3.2 2.8 3.2 3.2 2.0 2.7 1.5 1.9 Real disposable personal income...... 3.3 3.7 4.2 3.5 2.7 4.1 2.3 2.3 1.3 1.1 3.1 2.6 3.3 3.2 3.4 3.3 Price indexes: Gross domestic purchases........... 2.3 2.2 2.2 3.1 3.3 3.7 3.5 3.4 3.8 3.8 3.6 3.8 3.3 2.4 2.6 2.5 Gross domestic purchases excluding food and energy................... 1.9 1.9 2.1 2.7 2.9 3.1 3.2 3.0 3.0 3.1 2.9 3.1 3.0 2.8 2.8 2.3 GDP................................ 2.2 2.2 2.3 2.9 3.0 3.2 3.3 3.0 3.3 3.4 3.2 3.5 3.2 2.7 2.9 2.7 GDP excluding food and energy...... 1.9 1.9 2.1 2.7 2.9 3.2 3.3 3.1 3.2 3.3 3.1 3.3 3.2 2.9 2.9 2.5 PCE................................ 1.9 1.9 2.0 2.8 2.7 3.1 2.8 2.6 3.2 3.2 3.1 3.3 2.9 1.9 2.3 2.3 PCE excluding food and energy...... 1.3 1.4 1.8 2.1 2.1 2.2 2.3 2.1 2.1 2.2 2.0 2.2 2.4 2.3 2.4 2.0 Market-based PCE\1\................ 1.8 1.6 1.6 2.4 2.3 2.8 2.4 2.4 3.1 3.0 2.9 3.2 2.7 1.6 2.2 2.2 Market-based PCE excluding food and energy\1\..................... 1.1 1.0 1.3 1.5 1.4 1.6 1.8 1.7 1.7 1.7 1.6 1.9 2.1 2.0 2.2 1.8 ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates for the first quarter of 2007. 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 --------------------------------------------------- 2004 2005 2006 II 06 III 06 IV 06 I 07r II 07r ----------------------------------------------------------------------------------------------------------------------------------- Gross domestic product..................... 11,685.9 12,433.9 13,194.7 13,155.0 13,266.9 13,392.3 13,551.9 13,774.7 Plus: Income receipts from the rest of the world..................................... 437.5 544.1 691.4 688.9 709.7 733.8 752.2 801.0 Less: Income payments to the rest of the world..................................... 361.3 475.6 633.4 625.0 664.7 673.7 689.0 736.6 Equals: Gross national product............. 11,762.1 12,502.4 13,252.7 13,218.9 13,311.9 13,452.4 13,615.1 13,839.1 Less: Consumption of fixed capital......... 1,436.1 1,609.5 1,615.2 1,602.8 1,628.8 1,654.4 1,670.9 1,685.5 Less: Statistical discrepancy.............. 19.1 5.4 -18.1 -2.6 -2.5 -46.6 -66.3 -81.6 Equals: National income.................... 10,306.8 10,887.6 11,655.6 11,618.7 11,685.6 11,844.6 12,010.5 12,235.3 Compensation of employees................ 6,656.4 7,029.6 7,448.3 7,371.9 7,442.5 7,649.9 7,764.9 7,875.4 Wage and salary accruals............... 5,379.5 5,672.9 6,025.7 5,958.4 6,015.8 6,203.0 6,294.4 6,389.1 Supplements to wages and salaries...... 1,276.9 1,356.8 1,422.6 1,413.5 1,426.7 1,446.9 1,470.5 1,486.3 Proprietors' income with inventory valuation and capital consumption adjustments............................. 911.6 969.9 1,006.7 1,013.5 1,003.6 1,009.8 1,027.4 1,030.1 Rental income of persons with capital consumption adjustment.................. 118.4 42.9 54.5 55.4 52.9 50.9 53.2 61.1 Corporate profits with inventory valuation and capital consumption adjustments............................. 1,231.2 1,372.8 1,553.7 1,575.5 1,592.5 1,531.2 1,547.7 1,646.0 Net interest and miscellaneous payments.. 491.2 558.0 598.5 611.0 594.2 596.0 599.6 590.3 Taxes on production and imports less subsidies............................... 819.2 863.1 917.6 916.2 922.9 931.1 943.8 955.0 Business current transfer payments....... 83.0 66.5 90.2 88.6 91.4 91.8 91.8 92.5 Current surplus of government enterprises............................. -4.2 -15.1 -13.9 -13.4 -14.5 -16.0 -17.8 -15.1 Addendum: Gross domestic income.................... 11,666.8 12,428.6 13,212.8 13,157.5 13,269.4 13,438.9 13,618.2 13,856.3 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates for the first quarter of 2007. Table 10.--Personal Income and Its Disposition [Billions of dollars] ----------------------------------------------------------------------------------------------------------------------------------- Seasonally adjusted at annual rates --------------------------------------------------- 2004 2005 2006 II 06 III 06 IV 06 I 07r II 07r ----------------------------------------------------------------------------------------------------------------------------------- Personal income\1\......................... 9,727.2 10,301.1 10,983.4 10,915.5 11,030.9 11,200.2 11,469.2 11,604.9 Compensation of employees, received...... 6,671.4 7,024.6 7,440.8 7,371.9 7,442.5 7,599.9 7,764.9 7,850.4 Wage and salary disbursements.......... 5,394.5 5,667.9 6,018.2 5,958.4 6,015.8 6,153.0 6,294.4 6,364.1 Supplements to wages and salaries...... 1,276.9 1,356.8 1,422.6 1,413.5 1,426.7 1,446.9 1,470.5 1,486.3 Proprietors' income with inventory valuation and capital consumption adjustments............................. 911.6 969.9 1,006.7 1,013.5 1,003.6 1,009.8 1,027.4 1,030.1 Farm................................... 37.3 30.8 19.4 14.6 18.1 23.9 29.1 24.1 Nonfarm................................ 874.3 939.1 987.4 998.9 985.5 985.8 998.3 1,006.0 Rental income of persons with capital consumption adjustment.................. 118.4 42.9 54.5 55.4 52.9 50.9 53.2 61.1 Personal income receipts on assets....... 1,432.1 1,617.8 1,796.5 1,795.7 1,828.1 1,836.6 1,882.9 1,924.7 Personal interest income............... 895.1 1,018.9 1,100.2 1,112.7 1,119.7 1,102.8 1,126.1 1,143.1 Personal dividend income............... 537.0 598.9 696.3 682.9 708.4 733.8 756.8 781.6 Personal current transfer receipts....... 1,422.5 1,520.7 1,612.5 1,599.1 1,630.6 1,647.7 1,710.7 1,717.0 Less: Contributions for government social insurance........................ 828.8 874.8 927.6 920.1 926.8 944.6 969.8 978.4 Less: Personal current taxes............... 1,046.3 1,209.1 1,354.3 1,342.6 1,355.2 1,401.0 1,454.7 1,483.0 Equals: Disposable personal income......... 8,680.9 9,092.0 9,629.1 9,572.9 9,675.8 9,799.2 10,014.5 10,121.9 Less: Personal outlays..................... 8,499.2 9,047.4 9,590.3 9,542.9 9,677.1 9,757.2 9,917.5 10,069.0 Equals: Personal saving.................... 181.7 44.6 38.8 30.0 -1.4 42.0 97.0 52.8 Personal saving as a percentage of disposable personal income.............. 2.1 .5 .4 .3 .0 .4 1.0 .5 Addendum: Disposable personal income, billions of chained (2000) dollars\2\............... 8,008.9 8,147.9 8,396.9 8,348.6 8,384.5 8,510.7 8,623.9 8,626.5 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates for the first quarter of 2007. 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 --------------------------------------- ------------------------------- ------- 2004 2005 2006 II 06 III 06 IV 06 I 07 II 07 2005 2006 III 06 IV 06 I 07 II 07 II 07 ------------------------------------------------------------------------------------------------------------------------------------------------------------- Corporate profits with inventory valuation and capital consumption adjustments......................... 1,231.2 1,372.8 1,553.7 1,575.5 1,592.5 1,531.2 1,547.7 1,646.0 11.5 13.2 1.1 -3.8 1.1 6.4 4.5 Less: Taxes on corporate income...... 307.4 392.9 453.9 460.0 470.4 452.4 452.5 491.9 27.8 15.5 2.3 -3.8 .0 8.7 6.9 Equals: Profits after tax with inventory valuation and capital consumption adjustments............. 923.9 979.9 1,099.8 1,115.6 1,122.1 1,078.8 1,095.2 1,154.1 6.1 12.2 .6 -3.9 1.5 5.4 3.5 Net dividends...................... 539.5 601.4 698.9 685.6 711.1 736.4 759.4 784.1 11.5 16.2 3.7 3.6 3.1 3.3 14.4 Undistributed profits with inventory valuation and capital consumption adjustments........... 384.4 378.6 400.9 430.0 411.1 342.4 335.8 370.0 -1.5 5.9 -4.4 -16.7 -1.9 10.2 -14.0 Cash flow: Net cash flow with inventory valuation and capital consumption adjustments....................... 1,181.5 1,235.4 1,290.9 1,314.2 1,308.3 1,251.3 1,251.5 1,292.1 4.6 4.5 -.4 -4.4 .0 3.2 -1.7 Undistributed profits with inventory valuation and capital consumption adjustments......... 384.4 378.6 400.9 430.0 411.1 342.4 335.8 370.0 -1.5 5.9 -4.4 -16.7 -1.9 10.2 -14.0 Consumption of fixed capital..... 797.1 856.8 890.0 884.2 897.3 908.9 915.7 922.1 7.5 3.9 1.5 1.3 .7 .7 4.3 Less: Inventory valuation adjustment........................ -43.1 -36.2 -36.3 -57.7 -35.2 -21.0 -40.2 -54.1 ..... ..... ..... ..... ..... ..... ..... Equals: Net cash flow.............. 1,224.6 1,271.6 1,327.2 1,371.9 1,343.6 1,272.2 1,291.7 1,346.2 3.8 4.4 -2.1 -5.3 1.5 4.2 -1.9 Addenda: Profits before tax (without inventory valuation and capital consumption adjustments).......... 1,204.7 1,579.6 1,805.8 1,842.3 1,851.4 1,789.2 1,815.8 1,935.8 31.1 14.3 .5 -3.4 1.5 6.6 5.1 Profits after tax (without inventory valuation and capital consumption adjustments).......... 897.3 1,186.7 1,351.9 1,382.4 1,381.0 1,336.8 1,363.3 1,443.9 32.2 13.9 -.1 -3.2 2.0 5.9 4.5 Inventory valuation adjustment..... -43.1 -36.2 -36.3 -57.7 -35.2 -21.0 -40.2 -54.1 ..... ..... ..... ..... ..... ..... ..... Capital consumption adjustment..... 69.7 -170.6 -215.8 -209.1 -223.7 -237.0 -227.9 -235.7 ..... ..... ..... ..... ..... ..... ..... ------------------------------------------------------------------------------------------------------------------------------------------------------------- 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 --------------------------------------- ---------------------------------------------- 2004 2005 2006 II 06 III 06 IV 06 I 07 II 07 2005 2006 III 06 IV 06 I 07 II 07 ------------------------------------------------------------------------------------------------------------------------------------------------------------- Corporate profits with inventory valuation and capital consumption adjustments............................. 1,231.2 1,372.8 1,553.7 1,575.5 1,592.5 1,531.2 1,547.7 1,646.0 141.6 180.9 17.0 -61.3 16.5 98.3 Domestic industries.......................... 1,037.8 1,154.6 1,296.4 1,316.1 1,342.8 1,253.5 1,249.8 1,331.8 116.8 141.8 26.7 -89.3 -3.7 82.0 Financial.................................. 356.2 405.5 482.2 498.6 476.3 495.6 468.7 525.4 49.3 76.7 -22.3 19.3 -26.9 56.7 Nonfinancial............................... 681.6 749.1 814.3 817.5 866.4 757.9 781.1 806.4 67.5 65.2 48.9 -108.5 23.2 25.3 Rest of the world............................ 193.4 218.2 257.3 259.4 249.8 277.8 297.9 314.1 24.8 39.1 -9.6 28.0 20.1 16.2 Receipts from the rest of the world........ 316.4 358.7 419.8 420.6 425.9 438.7 448.7 474.7 42.3 61.1 5.3 12.8 10.0 26.0 Less: Payments to the rest of the world.... 123.0 140.6 162.5 161.2 176.1 160.9 150.8 160.6 17.6 21.9 14.9 -15.2 -10.1 9.8 Corporate profits with inventory valuation adjustment.................... 1,161.6 1,543.4 1,769.5 1,784.6 1,816.2 1,768.2 1,775.6 1,881.7 381.8 226.1 31.6 -48.0 7.4 106.1 Domestic industries.......................... 968.2 1,325.2 1,512.2 1,525.2 1,566.4 1,490.4 1,477.7 1,567.5 357.0 187.0 41.2 -76.0 -12.7 89.8 Financial.................................. 348.9 423.6 505.3 521.0 500.3 521.0 493.0 550.6 74.7 81.7 -20.7 20.7 -28.0 57.6 Federal Reserve banks.................... 20.0 26.6 33.8 33.8 35.9 34.8 38.5 39.2 6.6 7.2 2.1 -1.1 3.7 .7 Other financial.......................... 328.9 397.1 471.4 487.3 464.4 486.2 454.5 511.4 68.2 74.3 -22.9 21.8 -31.7 56.9 Nonfinancial............................... 619.3 901.6 1,006.9 1,004.2 1,066.1 969.5 984.7 1,016.9 282.3 105.3 61.9 -96.6 15.2 32.2 Utilities................................ 18.6 28.4 35.7 35.3 37.8 37.8 36.4 ..... 9.8 7.3 2.5 .0 -1.4 ..... Manufacturing............................ 152.7 251.2 293.4 298.0 319.5 280.2 298.9 ..... 98.5 42.2 21.5 -39.3 18.7 ..... Durable goods.......................... 38.3 85.1 95.9 81.8 101.8 107.2 113.0 ..... 46.8 10.8 20.0 5.4 5.8 ..... Fabricated metal products............ 11.9 17.3 20.3 18.9 19.3 22.5 23.3 ..... 5.4 3.0 .4 3.2 .8 ..... Machinery............................ 7.2 16.0 19.3 19.5 18.3 18.7 21.8 ..... 8.8 3.3 -1.2 .4 3.1 ..... Computer and electronic products..... -4.9 10.1 7.7 7.8 7.1 6.2 9.0 ..... 15.0 -2.4 -.7 -.9 2.8 ..... Electrical equipment, appliances, and components...................... .3 -3.7 -1.9 -2.9 -1.6 .2 1.3 ..... -4.0 1.8 1.3 1.8 1.1 ..... Motor vehicles, bodies and trailers, and parts........................... -7.6 .1 -1.1 -2.8 -1.4 1.3 4.6 ..... 7.7 -1.2 1.4 2.7 3.3 ..... Other durable goods.................. 31.3 45.3 51.7 41.4 60.1 58.3 52.9 ..... 14.0 6.4 18.7 -1.8 -5.4 ..... Nondurable goods....................... 114.5 166.0 197.5 216.1 217.6 173.0 185.9 ..... 51.5 31.5 1.5 -44.6 12.9 ..... Food and beverage and tobacco products............................ 24.2 27.8 29.2 27.9 30.4 31.8 30.1 ..... 3.6 1.4 2.5 1.4 -1.7 ..... Petroleum and coal products.......... 48.9 89.8 110.4 125.6 128.7 85.2 94.9 ..... 40.9 20.6 3.1 -43.5 9.7 ..... Chemical products.................... 25.4 29.7 37.6 41.5 40.6 31.7 41.0 ..... 4.3 7.9 -.9 -8.9 9.3 ..... Other nondurable goods............... 16.0 18.7 20.3 21.2 17.9 24.3 20.0 ..... 2.7 1.6 -3.3 6.4 -4.3 ..... Wholesale trade.......................... 79.2 95.2 97.0 85.4 118.1 91.1 97.8 ..... 16.0 1.8 32.7 -27.0 6.7 ..... Retail trade............................. 91.1 114.4 124.5 119.6 126.9 132.1 134.3 ..... 23.3 10.1 7.3 5.2 2.2 ..... Transportation and warehousing........... 14.1 28.2 41.9 45.9 47.7 40.0 39.1 ..... 14.1 13.7 1.8 -7.7 -.9 ..... Information.............................. 43.9 74.8 85.4 83.2 81.5 91.5 109.5 ..... 30.9 10.6 -1.7 10.0 18.0 ..... Other nonfinancial....................... 219.7 309.5 329.0 336.7 334.5 296.7 268.7 ..... 89.8 19.5 -2.2 -37.8 -28.0 ..... Rest of the world............................ 193.4 218.2 257.3 259.4 249.8 277.8 297.9 314.1 24.8 39.1 -9.6 28.0 20.1 16.2 ------------------------------------------------------------------------------------------------------------------------------------------------------------- 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 --------------------------------------------------- 2004 2005 2006 II 06 III 06 IV 06 I 07r II 07 ----------------------------------------------------------------------------------------------------------------------------------- Billions of dollars ---------------------------------------------------------------------------------------- Gross value added of nonfinancial corporate business.................... 5,956.4 6,319.4 6,689.4 6,639.8 6,739.1 6,784.5 6,865.0 6,967.7 Consumption of fixed capital............... 687.4 742.3 772.8 767.6 779.5 789.8 795.7 801.2 Net value added............................ 5,269.0 5,577.1 5,916.6 5,872.2 5,959.6 5,994.7 6,069.3 6,166.5 Compensation of employees................ 3,865.2 4,078.5 4,316.7 4,269.2 4,306.4 4,442.1 4,494.1 4,557.4 Wage and salary accruals............... 3,159.7 3,334.8 3,543.8 3,501.0 3,532.3 3,657.5 3,695.5 3,753.0 Supplements to wages and salaries...... 705.5 743.6 772.9 768.2 774.1 784.6 798.6 804.5 Taxes on production and imports less subsidies............................... 523.9 558.7 584.9 583.9 587.3 592.1 599.7 606.5 Net operating surplus.................... 879.9 940.0 1,015.0 1,019.1 1,065.9 960.5 975.6 1,002.6 Net interest and miscellaneous payments.............................. 138.9 132.5 133.2 135.0 132.3 133.6 136.0 136.9 Business current transfer payments..... 59.3 58.3 67.6 66.7 67.2 68.9 58.5 59.2 Corporate profits with inventory valuation and capital consumption adjustments........................... 681.6 749.1 814.3 817.5 866.4 757.9 781.1 806.4 Taxes on corporate income............ 191.0 263.4 288.2 288.8 300.6 285.2 298.6 322.2 Profits after tax with inventory valuation and capital consumption adjustments......................... 490.7 485.7 526.0 528.6 565.8 472.7 482.5 484.2 Net dividends...................... 367.0 199.2 448.6 405.2 463.2 532.2 483.7 491.0 Undistributed profits with inventory valuation and capital consumption adjustments........... 123.7 286.5 77.4 123.5 102.6 -59.5 -1.2 -6.9 Addenda: Profits before tax (without inventory valuation and capital consumption adjustments)............................ 662.4 937.8 1,043.2 1,061.9 1,101.4 990.4 1,024.9 1,071.1 Profits after tax (without inventory valuation and capital consumption adjustments)............................ 471.4 674.4 755.0 773.0 800.7 705.3 726.3 748.8 Inventory valuation adjustment........... -43.1 -36.2 -36.3 -57.7 -35.2 -21.0 -40.2 -54.1 Capital consumption adjustment........... 62.4 -152.5 -192.7 -186.7 -199.7 -211.6 -203.6 -210.5 ---------------------------------------------------------------------------------------- Billions of chained (2000) dollars ---------------------------------------------------------------------------------------- Gross value added of nonfinancial corporate business\1\................. 5,652.3 5,806.6 6,012.1 5,965.7 6,039.7 6,076.2 6,089.6 6,158.1 Consumption of fixed capital\2\............ 651.4 682.4 686.9 683.1 690.4 698.1 701.7 705.2 Net value added\3\......................... 5,001.0 5,124.2 5,325.3 5,282.6 5,349.2 5,378.1 5,387.9 5,452.9 ---------------------------------------------------------------------------------------- Dollars; quarters seasonally adjusted ---------------------------------------------------------------------------------------- Price, costs, and profits per unit of real gross value added of nonfinancial corporate business: Price per unit of real gross value added of nonfinancial corporate business\4\... 1.054 1.088 1.113 1.113 1.116 1.117 1.127 1.131 Compensation of employees (unit labor cost)................................... .684 .702 .718 .716 .713 .731 .738 .740 Unit nonlabor cost....................... .250 .257 .260 .261 .259 .261 .261 .260 Consumption of fixed capital........... .122 .128 .129 .129 .129 .130 .131 .130 Taxes on production and imports less subsidies plus business current transfer payments..................... .103 .106 .109 .109 .108 .109 .108 .108 Net interest and miscellaneous payments .025 .023 .022 .023 .022 .022 .022 .022 Corporate profits with inventory valuation and capital consumption adjustments (unit profits from current production)........ .121 .129 .135 .137 .143 .125 .128 .131 Taxes on corporate income.............. .034 .045 .048 .048 .050 .047 .049 .052 Profits after tax with inventory valuation and capital consumption adjustments........................... .087 .084 .087 .089 .094 .078 .079 .079 ----------------------------------------------------------------------------------------------------------------------------------- r Revised. Revisions include changes to series affected by the introduction of revised wage and salary estimates for the first quarter of 2007. 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] ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2004 2005 2006 III 03 IV 03 I 04 II 04 III 04 IV 04 I 05 II 05 III 05 IV 05 I 06 II 06 III 06 IV 06 I 07 II 07r ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Gross domestic product (GDP) and related aggregates: GDP............................... 3.6 3.1 2.9 7.5 2.7 3.0 3.5 3.6 2.5 3.1 2.8 4.5 1.2 4.8 2.4 1.1 2.1 .6 4.0 Goods............................. 4.7 4.3 5.0 16.2 2.5 2.1 3.4 6.6 3.7 4.2 3.9 5.8 1.5 9.6 4.6 3.4 1.1 .2 5.6 Services.......................... 2.8 2.3 2.3 1.9 2.8 3.8 2.2 2.4 2.4 2.3 1.4 4.4 1.0 2.4 2.0 2.0 4.4 2.1 3.2 Structures........................ 5.2 3.4 -.1 14.1 2.2 1.0 11.5 1.3 -.3 4.0 7.3 1.2 1.2 4.3 -1.4 -9.9 -7.0 -6.2 3.4 Motor vehicle output.............. 4.0 4.2 -1.3 8.9 -6.5 8.8 -6.1 29.0 -9.6 5.4 4.7 30.6 -30.5 17.0 -10.9 15.1 -21.6 6.2 .8 GDP excuding motor vehicle output........................... 3.6 3.0 3.0 7.4 3.0 2.8 3.8 2.8 3.0 3.0 2.7 3.6 2.5 4.4 2.9 .6 2.9 .4 4.1 Final sales of computers\1\....... 5.4 35.1 19.4 90.4 20.0 -31.0 -6.6 19.8 50.1 39.5 51.7 21.8 34.2 7.3 20.7 5.1 27.0 -1.3 36.4 GDP excluding final sales of computers........................ 3.6 2.9 2.8 7.0 2.5 3.3 3.6 3.5 2.3 2.8 2.5 4.3 1.0 4.8 2.3 1.0 1.9 .6 3.8 Farm gross value added\2\......... 8.1 5.9 .6 -34.7 -36.1 149.5 -30.8 18.9 40.8 -10.9 14.0 -3.0 6.0 -8.9 17.5 -12.4 .8 -12.5 -27.8 Nonfarm business gross value added\3\......................... 4.1 3.6 3.2 11.0 1.6 2.6 5.0 3.8 2.6 3.9 3.2 5.6 .9 5.7 2.4 .8 2.6 .3 5.0 Price indexes: GDP............................... 2.9 3.2 3.2 2.1 2.2 3.7 3.8 2.3 3.2 3.9 2.6 3.5 3.5 3.4 3.5 2.4 1.7 4.2 2.7 GDP excluding food and energy..... 2.7 3.2 3.1 1.7 2.1 3.5 3.4 2.8 3.1 4.1 2.6 2.9 3.5 3.4 3.2 2.6 2.4 3.3 1.6 GDP excluding final sales of computers........................ 3.0 3.4 3.3 2.2 2.3 3.8 3.8 2.4 3.4 4.1 2.7 3.6 3.7 3.5 3.6 2.5 1.8 4.3 2.8 Gross domestic purchases.......... 3.1 3.7 3.3 2.2 1.9 4.3 4.2 2.8 3.6 3.6 3.5 4.6 3.7 2.7 4.2 2.5 .1 3.8 3.8 Gross domestic purchases excluding food and energy.................. 2.7 3.1 2.9 1.8 2.0 3.5 3.4 2.6 2.8 4.0 2.6 2.7 3.2 3.2 3.2 2.5 2.3 3.1 1.6 Gross domestic purchases excluding final sales of computers to domestic purchasers.............. 3.2 3.9 3.5 2.4 2.0 4.4 4.3 2.9 3.9 3.8 3.7 4.8 3.9 2.9 4.5 2.7 .2 3.9 4.0 Personal consumption expenditures (PCE)............................ 2.6 2.9 2.8 2.4 1.5 3.5 3.8 2.0 3.0 2.2 3.4 4.3 2.8 1.7 4.3 2.6 -.9 3.5 4.2 Personal consumption expenditures excluding food and energy........ 2.1 2.2 2.2 1.8 1.6 2.4 2.7 1.7 2.1 2.6 2.1 1.7 2.4 2.0 2.9 2.3 1.9 2.4 1.3 Market-based PCE\4\............... 2.3 2.7 2.6 2.2 .9 3.2 3.4 1.5 2.9 1.9 3.1 4.3 2.6 1.5 4.3 2.4 -1.6 3.6 4.6 Market-based PCE excluding food and energy\4\.................... 1.5 1.7 1.9 1.4 .9 1.8 1.9 1.1 1.8 2.3 1.5 1.2 1.9 1.8 2.6 2.1 1.6 2.4 1.1 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 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 2005-06 annual percent change in real GDP uses prices for 2005 and 2006 as weights, and the 2005-06 annual percent change in GDP prices uses quantities for 2005 and 2006 as weights. These annual changes are "chained" (multiplied) together to form time series of quantity and price indexes. Percent changes in Fisher indexes are not affected by the choice of reference year. (BEA also publishes a measure of the price level known as the implicit price deflator (IPD), which is calculated as the ratio of the current-dollar value to the corresponding chained-dollar value, multiplied by 100. The values of the IPD are very close to the values of the corresponding "chain-type" price index.) Index numbers of quantity and price indexes for GDP and its major components are presented in this release in tables 5 and 6. Percent changes from the preceding period are presented in tables 1, 4, 7, 8, and Appendix Table A. Contributions by major components to changes in real GDP are presented in table 2. Measures of real GDP and its major components are also presented in dollar-denominated form, designated "chained (2000) dollar estimates." For most series, these estimates, which are presented in table 3, are computed by multiplying the current-dollar value in 2000 by a corresponding quantity index number and then dividing by 100. For example, if a current-dollar GDP component equaled $100 in 2000 and if real output for this component increased 10 percent in 2001, then the chained (2000) dollar value of this component in 2001 would be $110 (= $100 x 110 / 100). Percent changes calculated from chained-dollar estimates and from chain-type quantity indexes are the same; any differences will be small and due to rounding. Chained-dollar values for the detailed GDP components will not necessarily sum to the chained-dollar estimate of GDP (or to any intermediate aggregate). This is because the relative prices used as weights for any period other than the reference year differ from those of the reference year. A measure of the extent of such differences is provided by a "residual" line, which indicates the difference between GDP (or other major aggregate) and the sum of the most detailed components in the table. For periods close to the reference year, when there usually has not been much change in the relative prices that are used as weights, the residuals tend to be small, and the chained-dollar estimates can be used to approximate the contributions to growth and to aggregate the detailed estimates. For periods further from the reference year, the residuals tend to be larger, and the chained-dollar estimates are less useful for analyses of contributions to growth. Thus, the contributions to percent change shown in table 2 provide a better measure of the composition of GDP growth. In particular, for components for which relative prices are changing rapidly, calculation of contributions using chained-dollar estimates may be misleading even just a few years from the reference year. Reference: "Chained-Dollar Indexes: Issues, Tips on Their Use, and Upcoming Changes," November 2003 Survey, pp. 8-16.