skip to Main Content
BEA Logo
News
 
 


News Release: Gross Domestic Product and Corporate Profits

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

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, JUNE 25, 2004


Virginia H. Mannering:  (202) 606-5304   (GDP)                          BEA 04-31
Scott Okrent:           (202  606-9730   (Profits)
Recorded message:       (202  606-5306



         GROSS DOMESTIC PRODUCT:  FIRST QUARTER 2004 (FINAL)
          CORPORATE PROFITS:  FIRST QUARTER 2004 (REVISED)



    Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 3.9 percent in the first quarter of 2004,
according to revised estimates released by the Bureau of Economic Analysis.  In the fourth quarter, real
GDP increased 4.1 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 
4.4 percent (see "Revisions" on page 3).

    The major contributors to the increase in real GDP in the first quarter were personal consumption
expenditures (PCE), exports, equipment and software, private inventory investment, and federal
government spending.  Imports, which are a subtraction in the calculation of GDP, increased.



BOX
                   Annual Revision of the National Income and Product Accounts

            The annual revision of the national income and product accounts, covering the first quarter of
  2001 through the first quarter of 2004, will be released along with the "advance" estimate of GDP for
  the second quarter of 2004 on July 30.  An article describing the revision will appear in the August         
  2004 issue of the Survey of Current Business.  

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 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 slight deceleration in real GDP growth in the first quarter primarily reflected decelerations in
exports and in equipment and software that were partly offset by a deceleration in imports and
accelerations in federal government spending and in PCE.

    The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 3.5 percent in the first quarter, 0.2 percentage point more than in the preliminary estimate; this
index increased 1.3 percent in the fourth quarter.  Excluding food and energy prices, the price index for
gross domestic purchases increased 2.6 percent in the first quarter, compared with an increase of 1.5
percent in the fourth. 

    Final sales of computers contributed 0.01 percentage point to the first-quarter change in real GDP
after adding 0.29 percentage point to the fourth-quarter change.  Motor vehicle output subtracted 0.29
percentage point from the first-quarter change in real GDP after adding 0.13 percentage point to the
fourth-quarter change.  

    Real personal consumption expenditures increased 3.8 percent in the first quarter, compared with
an increase of 3.2 percent in the fourth.  Real nonresidential fixed investment increased 5.3 percent,
compared with an increase of 10.9 percent.  Nonresidential structures decreased 7.4 percent, compared
with a decrease of 1.4 percent.  Equipment and software increased 9.2 percent, compared with an
increase of 14.9 percent.  Real residential fixed investment increased 4.6 percent, compared with an
increase of 7.9 percent.

    Real exports of goods and services increased 7.5 percent in the first quarter, compared with an
increase of 20.5 percent in the fourth.  Real imports of goods and services increased 10.4 percent,
compared with an increase of 16.4 percent.

    Real federal government consumption expenditures and gross investment increased 8.5 percent in
the first quarter, compared with an increase of 0.7 percent in the fourth.  National defense increased 13.2
percent, compared with an increase of 3.0 percent.  Nondefense decreased 0.3 percent, compared with a 
decrease of 3.7 percent.  Real state and local government consumption expenditures and gross
investment decreased 0.3 percent, compared with a decrease of 0.5 percent.

    The real change in private inventories added 0.65 percentage point to the first-quarter change in
real GDP, after adding 0.71 percentage point to the fourth-quarter change.  Private businesses increased
inventories $25.5 billion in the first quarter, following an increase of $9.0 billion in the fourth quarter
and a decrease of $9.1 billion in the third.

    Real final sales of domestic product -- GDP less change in private inventories -- increased 3.2
percent in the first quarter, compared with an increase of 3.4 percent in the fourth.


Gross domestic purchases

    Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 4.4 percent in the first quarter, compared with an increase of 4.3 percent in the
fourth. 


Gross national product

    Real gross national product -- the goods and services produced by the labor and property supplied
by U.S. residents -- increased 3.4 percent in the first quarter, compared with an increase of 5.5 percent in
the fourth.  GNP includes, and GDP excludes, net receipts of income from the rest of the world, which
decreased $13.2 billion in the first quarter after increasing $36.4 billion in the fourth; in the first quarter,
receipts decreased $0.6 billion, and payments increased $12.6 billion.


Current-dollar GDP

    Current-dollar GDP   the market value of the nation's output of goods and services -- increased
6.9 percent, or $189.2 billion, in the first quarter to a level of $11,451.2 billion.  In the fourth quarter,
current-dollar GDP increased 5.7 percent, or $155.0 billion.


Revisions

    The final estimate of the first-quarter increase in real GDP is 0.5 percentage point, or $13.9
billion, lower than the preliminary estimate issued last month. The downward revision to the percentage
change in real GDP reflected an upward revision to imports and a downward revision to PCE for
services, that were partly offset by an upward revision to exports.   


                                           Advance       Preliminary       Final
                                          (Percent change from preceding quarter)
Real GDP.................................    4.2            4.4             3.9
Current-dollar GDP.......................    6.8            7.2             6.9
Gross domestic purchases price index.....    3.2            3.3             3.5




                           Corporate Profits

    Profits from current production (corporate profits with inventory valuation and capital
consumption adjustments) increased $20.9 billion in the first quarter, according to revised estimates.  In
the fourth quarter, profits increased $81.4 billion.  Current-production cash flow (net cash flow with
inventory valuation and capital consumption adjustments) -- the internal funds available to corporations
for investment -- increased $20.1 billion in the first quarter, compared with an increase of $70.6 billion
in the fourth.

     Taxes on corporate income increased $0.4 billion in the first quarter, compared with an increase
of $13.1 billion in the fourth.  Profits after tax with inventory valuation and capital consumption
adjustments increased $20.4 billion in the first quarter, after increasing $68.2 billion in the fourth. 
Dividends increased $8.0 billion, compared with an increase of $7.5 billion; current-production
undistributed profits increased $12.3 billion, compared with an increase of $60.9 billion.

    Domestic profits increased $31.2 billion in the first quarter, compared with an increase of $33.9
billion in the fourth.  Domestic profits of financial corporations increased $19.6 billion in the first
quarter, compared with an increase of $5.2 billion in the fourth.  Domestic profits of nonfinancial
corporations increased $11.7 billion in the first quarter, compared with an increase of $28.7 billion in the
fourth.  In the first quarter, real gross value added increased, and profits per unit of real gross value
added was unchanged; an increase in the prices corporations received was offset by an increase in unit
labor costs.
    
    The foreign component of profits (rest-of-the-world profits) decreased $10.4 billion in the first
quarter, in contrast to an increase of $47.5 billion in the fourth.  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 first-
quarter decrease was accounted for by a larger increase in payments than in receipts.

    The revised estimate of first-quarter corporate profits from current production is $6.5 billion
higher than the preliminary estimate issued last month.  The foreign component of profits (rest-of-the-
world profits) and domestic profits of nonfinancial corporations were revised up $11.5 billion and $5.6
billion, respectively.  Domestic profits of financial corporations was revised down $10.7 billion.

    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 the depreciation-accounting practices used for federal income tax returns.  According to this
measure, domestic profits of financial corporations increased, and domestic profits of nonfinancial
corporations decreased.  Decreases in profits of nonfinancial corporations were widespread among major
industry groups with the largest occurring in manufacturing and in wholesale trade; only retail trade
increased.

    Profits before tax decreased $25.4 billion in the first quarter, in contrast to an increase of $92.2
billion in the fourth.  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 increased $63.9 billion in the first quarter (from $269.2 billion to $333.1 billion), compared
with an increase of $9.1 billion in the fourth.  The inventory valuation adjustment decreased $17.6
billion (from -$21.7 billion to -$39.3 billion), compared with a decrease of $19.9 billion.

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

                             <www.bea.gov>

    Summary BEA estimates are available on recorded messages at the time of public release at the
following telephone numbers:
    
               (202)   606-5306     Gross domestic product
               (202)   606-5303     Personal income and outlays
               (202)   606-5362     U.S. international transactions
    

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


                        *          *          *


           Next release -- July 30, 2004, at 8:30 A.M. EDT for:
           Annual revision (first quarter 2001 through first
           quarter 2004) and advance estimates of gross
           domestic product for the second quarter of 2004
    



                                    Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003  II 00 III 00  IV 00   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).     .5    2.2    3.1    6.4    -.5    2.1    -.2    -.6   -1.3    2.0    4.7    1.9    3.4    1.3    2.0    3.1    8.2    4.1    3.9

Personal consumption expenditures...    2.5    3.4    3.1    2.5    3.9    3.4     .5    2.3    1.9    6.2    4.1    2.6    2.0    2.2    2.5    3.3    6.9    3.2    3.8
  Durable goods.....................    4.1    6.5    7.4   -9.5    6.0     .7    1.7    9.8     .7   27.3    1.6     .5    5.0     .3     .5   17.7   28.0     .7   -3.7
  Nondurable goods..................    1.9    3.0    3.8    5.7    2.3    3.7     .4   -1.1    2.9    4.7    6.1     .4     .2    4.6    5.7    1.2    7.3    5.4    6.9
  Services..........................    2.4    3.0    2.0    3.9    4.3    3.9     .3    2.4    1.6    2.8    3.8    4.1    2.2    1.5    1.5    1.7    2.8    2.8    3.9

Gross private domestic investment...   -8.4   -1.2    4.2   29.1   -9.9   -2.3  -11.1  -16.4   -8.5  -17.7   11.1    4.6   11.4    -.6   -3.5    4.7   14.8   14.9    9.4
  Fixed investment..................   -3.2   -3.7    4.4    9.5    -.6     .7   -2.7   -9.2   -5.2  -10.8   -2.5     .6     .6    2.1    1.1    6.1   15.8    9.9    5.0
    Nonresidential..................   -4.5   -7.2    3.0   14.8    2.2     .9   -4.5  -13.6   -8.4  -14.0   -7.0   -3.0   -1.1    -.1    -.6    7.0   12.8   10.9    5.3
      Structures....................   -2.5  -18.4   -4.6   18.0    9.6    1.2   -5.9   -5.6    2.2  -35.3  -23.9  -14.5  -14.6   -5.6   -4.0    3.9   -1.8   -1.4   -7.4
      Equipment and software........   -5.2   -2.8    5.5   13.7    -.2     .8   -4.0  -16.4  -12.2   -4.1    -.2    1.2    3.7    1.7     .5    8.0   17.6   14.9    9.2
    Residential.....................     .4    4.9    7.5   -3.5   -8.0     .4    2.6    3.7    3.1   -2.5    8.7    8.9    4.2    6.8    4.5    4.5   21.9    7.9    4.6
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................   -5.2   -2.4    2.0   12.3   10.7   -2.7   -4.5  -13.4  -17.7   -9.8    4.4    8.7    4.3   -3.7   -2.0   -1.1    9.9   20.5    7.5
    Goods...........................   -6.1   -4.0    1.9   13.8   18.3   -5.4   -5.4  -18.1  -18.9   -7.6   -2.6   12.0    4.3   -9.1    1.9   -1.7    8.6   21.3    9.4
    Services........................   -3.1    1.4    2.3    8.5   -6.6    4.4   -2.0    -.6  -14.7  -15.0   22.8    1.6    4.5    9.4  -10.1     .2   12.7   18.9    3.3
  Imports...........................   -2.6    3.3    4.0   16.5   14.1   -1.6   -6.2   -8.6  -10.8   -3.8    8.4   17.1    4.1    8.2   -6.8    9.1     .8   16.4   10.4
    Goods...........................   -3.2    3.7    4.8   17.7   14.1   -1.6   -6.8  -12.2   -9.2   -3.2    6.3   21.9    4.8    7.4   -6.6   13.7   -1.5   18.3   12.2
    Services........................     .4    1.4    -.1   10.7   14.1   -1.9   -3.1   12.5  -18.2   -6.9   19.2   -3.6     .7   12.2   -7.5  -10.9   13.4    7.5    1.9

Government consumption expenditures
 and gross investment...............    2.8    3.8    3.3    5.5   -2.1    1.3    5.8    5.8   -4.1    7.4    4.6    4.0    2.5    7.1    -.4    7.4    1.8    -.1    3.0
  Federal...........................    3.7    7.9    8.7   17.2   -8.2   -1.0    8.9    6.7     .0    9.9    8.4   10.5    3.9   18.2    -.2   23.5    1.2     .7    8.5
    National defense................    3.9    8.9   10.6   17.0   -7.4    1.7    7.7    2.6    2.4   14.2    8.2    9.5    4.5   22.1   -5.6   41.9   -1.3    3.0   13.2
    Nondefense......................    3.5    6.2    5.3   17.6   -9.7   -5.7   11.2   14.4   -4.3    2.6    8.7   12.2    2.9   11.4   10.5   -5.0    6.5   -3.7    -.3
  State and local...................    2.2    1.8     .5     .1    1.3    2.5    4.3    5.3   -6.1    6.1    2.7     .7    1.7    1.5    -.5    -.8    2.1    -.5    -.3

Addenda:
  Final sales of domestic product...    1.4    1.8    3.2    3.3    1.3    2.6    1.4     .7    -.7    3.2    2.6    1.3    1.8    1.7    2.7    3.3    8.3    3.4    3.2
  Gross domestic purchases..........     .7    2.8    3.3    7.2     .4    2.1    -.7    -.4    -.8    2.4    5.2    3.1    3.4    2.7    1.1    4.3    7.0    4.3    4.4
  Final sales to domestic
   purchasers.......................    1.6    2.4    3.4    4.2    2.1    2.6     .9     .9    -.3    3.6    3.2    2.5    1.8    3.1    1.8    4.5    7.2    3.6    3.8
  Gross national product (GNP)......     .5    2.1    3.3    6.6    -.7    3.0   -1.3    -.6   -1.9    4.6    2.6    1.3    3.8    2.0    1.5    3.3    8.3    5.5    3.4
  Disposable personal income........    1.8    3.8    2.7    2.7    5.2     .6    -.3   -1.4   12.2   -4.4   10.6    4.1    -.9     .6    2.4    4.9    6.8    1.2    4.9

  Current-dollar measures:
    GDP.............................    2.9    3.8    4.8    8.3    1.6    3.8    2.9    2.6     .3    3.9    5.4    3.9    4.4    3.1    4.3    4.2   10.0    5.7    6.9
    Final sales of domestic product.    3.9    3.3    4.9    5.4    3.2    4.5    4.5    4.0     .9    4.8    3.8    2.8    3.3    3.5    5.1    4.4   10.1    5.0    6.2
    Gross domestic purchases........    2.7    4.2    5.3    8.9    2.9    3.7    1.9    1.9     .2    3.3    5.8    6.1    4.6    4.5    4.5    4.7    8.9    5.7    8.1
    Final sales to domestic
     purchasers.....................    3.6    3.8    5.4    6.1    4.5    4.4    3.5    3.3     .7    4.1    4.2    5.0    3.5    4.8    5.3    4.8    9.1    5.0    7.5
    GNP.............................    2.8    3.6    5.0    8.4    1.4    4.7    1.8    2.5    -.3    6.5    3.3    3.3    4.9    3.9    3.9    4.4   10.1    7.1    6.3
    Disposable personal income......    3.8    5.2    4.6    4.7    7.2    2.4    2.9    1.1   12.8   -4.1   11.4    7.2    1.1    2.3    5.3    5.4    8.7    2.2    8.3
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003  II 00 III 00  IV 00   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

    Gross domestic product..........     .5    2.2    3.1    6.4    -.5    2.1    -.2    -.6   -1.3    2.0    4.7    1.9    3.4    1.3    2.0    3.1    8.2    4.1    3.9

Percentage points at annual rates:

  Personal consumption expenditures.   1.68   2.38   2.22   1.78   2.62   2.29    .28   1.52   1.27   4.20   2.92   1.81   1.39   1.57   1.80   2.34   4.89   2.29   2.64

    Durable goods...................    .36    .55    .61   -.89    .50    .06    .15    .80    .06   2.14    .14    .04    .43    .02    .04   1.38   2.23    .06   -.32
      Motor vehicles and parts......    .19    .18    .17  -1.12    .28    .01    .04    .67   -.13   1.58   -.44   -.25    .29   -.33   -.16    .54   1.36   -.35   -.70
      Furniture and household
       equipment....................    .18    .30    .29    .19    .19    .07    .18    .16    .23    .40    .45    .23    .12    .24    .04    .54    .65    .30    .31
      Other.........................   -.01    .08    .16    .04    .03   -.02   -.07   -.02   -.04    .16    .13    .05    .02    .11    .17    .30    .21    .11    .07

    Nondurable goods................    .37    .60    .76   1.11    .44    .72    .06   -.22    .57    .91   1.19    .07    .04    .90   1.13    .25   1.48   1.07   1.36
      Food..........................    .12    .22    .37    .39    .09    .14    .22   -.03    .02    .14    .56    .19    .03    .22    .63    .23    .71    .32    .82
      Clothing and shoes............    .06    .15    .14    .21    .19    .04   -.08    .01    .15    .19    .33    .01   -.01    .21    .09    .21    .27    .04    .40
      Gasoline, fuel oil, and other
       energy goods.................    .03    .04    .00   -.06   -.05    .25    .12   -.37    .09    .32    .10   -.20   -.09    .21    .08   -.40    .07    .39   -.07
      Other.........................    .15    .20    .26    .56    .21    .29   -.19    .17    .31    .27    .22    .07    .11    .25    .33    .20    .43    .33    .20

    Services........................    .96   1.23    .85   1.55   1.67   1.51    .07    .94    .64   1.15   1.58   1.70    .92    .65    .63    .71   1.19   1.16   1.61
      Housing.......................    .28    .29    .24    .31    .27    .28    .33    .26    .21    .25    .35    .33    .28    .25    .26    .20    .25    .17    .24
      Household operation...........    .00    .04    .02    .51    .16    .41   -.27   -.31   -.05   -.17    .18    .36   -.14    .04    .04   -.13    .14    .05    .18
        Electricity and gas.........   -.02    .04    .00    .33    .07    .40   -.15   -.49   -.04   -.13    .20    .27   -.05    .09    .01   -.21    .06    .02    .13
        Other household operation...    .02    .00    .02    .18    .08    .01   -.12    .17   -.01   -.04   -.02    .09   -.09   -.05    .03    .08    .08    .03    .05
      Transportation................   -.02   -.05   -.07    .08   -.01    .01    .03   -.01   -.15   -.14    .10   -.05   -.12   -.09    .01   -.11   -.06   -.08   -.01
      Medical care..................    .45    .63    .59    .47    .41    .42    .35    .47    .62    .61    .75    .61    .51    .69    .59    .53    .60    .58    .53
      Recreation....................    .06    .11    .06    .14    .10    .04    .09   -.02    .06    .15    .19    .07    .05    .09    .00    .10    .08    .12    .17
      Other.........................    .18    .20    .00    .05    .75    .34   -.45    .56   -.06    .45    .00    .38    .34   -.33   -.28    .13    .19    .33    .49

  Gross private domestic investment.  -1.47   -.18    .64   4.65  -1.84   -.36  -1.96  -2.92  -1.39  -2.98   1.60    .69   1.66   -.09   -.57    .73   2.17   2.19   1.43

    Fixed investment................   -.54   -.60    .67   1.60   -.10    .13   -.45  -1.60   -.88  -1.83   -.41    .08    .08    .31    .16    .90   2.30   1.48    .78
      Nonresidential................   -.56   -.82    .30   1.76    .28    .11   -.56  -1.76  -1.02  -1.71   -.81   -.33   -.12   -.01   -.06    .68   1.25   1.08    .54
        Structures..................   -.08   -.59   -.12    .53    .29    .04   -.20   -.19    .07  -1.36   -.77   -.41   -.40   -.14   -.10    .09   -.04   -.03   -.18
        Equipment and software......   -.47   -.23    .42   1.23   -.02    .07   -.37  -1.57  -1.09   -.35   -.03    .09    .28    .13    .04    .59   1.30   1.11    .71
          Information processing
           equipment and software...   -.10    .02    .54    .96    .33    .58   -.20   -.84   -.58   -.15    .09    .37    .53   -.06    .64    .64   1.05    .70    .67
            Computers and peripheral
             equipment..............    .02    .11    .24    .45    .12    .06    .16   -.22   -.26    .19    .22    .06    .28    .09    .21    .33    .39    .26    .08
            Software................   -.04   -.04    .14    .18    .02    .20   -.07   -.24   -.16   -.21   -.05    .09    .21   -.06    .18    .15    .24    .23    .28
            Other...................   -.08   -.05    .16    .33    .19    .32   -.28   -.39   -.16   -.14   -.08    .21    .05   -.10    .26    .15    .41    .20    .30
          Industrial equipment......   -.14   -.09   -.05    .14    .09   -.12    .04   -.53   -.30   -.22    .26   -.21    .00   -.04   -.10   -.02    .02   -.03    .07
          Transportation equipment..   -.18   -.14   -.11    .04   -.31   -.36   -.27    .00   -.25    .24   -.34   -.24   -.26    .20   -.37   -.09   -.05    .25   -.15
          Other equipment...........   -.05   -.02    .04    .09   -.13   -.03    .06   -.21    .04   -.21   -.04    .17    .00    .04   -.13    .05    .28    .20    .14
      Residential...................    .02    .23    .36   -.16   -.38    .02    .12    .16    .14   -.12    .40    .41    .20    .32    .22    .22   1.05    .40    .24

    Change in private inventories...   -.93    .41   -.03   3.05  -1.74   -.49  -1.51  -1.32   -.51  -1.15   2.01    .61   1.58   -.40   -.74   -.17   -.13    .71    .65
      Farm..........................    .02   -.03    .02    .88   -.36    .34    .03   -.34    .14   -.26    .39   -.64    .34   -.02    .15   -.09   -.03    .10   -.08
      Nonfarm.......................   -.94    .44   -.05   2.18  -1.38   -.83  -1.54   -.99   -.65   -.89   1.62   1.25   1.25   -.38   -.88   -.08   -.10    .61    .73

  Net exports of goods and services.   -.19   -.70   -.35   -.98   -.87   -.07    .46   -.25   -.42   -.50   -.65  -1.32   -.15  -1.47    .81  -1.34    .80   -.32   -.71

    Exports.........................   -.58   -.24    .20   1.30   1.14   -.31   -.50  -1.54  -1.99  -1.02    .40    .80    .41   -.37   -.19   -.11    .92   1.81    .72
      Goods.........................   -.48   -.29    .13   1.03   1.36   -.45   -.44  -1.52  -1.50   -.54   -.19    .75    .28   -.64    .13   -.11    .56   1.29    .62
      Services......................   -.10    .04    .07    .26   -.22    .14   -.06   -.02   -.48   -.47    .59    .05    .13    .27   -.31    .01    .36    .52    .10

    Imports.........................    .39   -.45   -.55  -2.27  -2.01    .24    .96   1.29   1.57    .52  -1.05  -2.12   -.56  -1.10   1.00  -1.24   -.12  -2.14  -1.43
      Goods.........................    .39   -.42   -.55  -2.03  -1.70    .19    .88   1.57   1.10    .35   -.66  -2.20   -.55   -.83    .81  -1.51    .18  -1.96  -1.39
      Services......................   -.01   -.03    .00   -.24   -.32    .04    .08   -.28    .47    .16   -.39    .09   -.02   -.27    .19    .27   -.30   -.17   -.05

  Government consumption expenditures
   and gross investment.............    .48    .69    .62    .96   -.37    .22    .99   1.00   -.74   1.28    .85    .72    .46   1.29   -.07   1.36    .34   -.01    .54

    Federal.........................    .22    .48    .56    .96   -.51   -.07    .50    .38    .00    .57    .52    .64    .26   1.11   -.01   1.46    .09    .05    .57
      National defense..............    .15    .35    .44    .61   -.29    .06    .27    .10    .09    .53    .33    .38    .19    .85   -.25   1.58   -.06    .13    .58
        Consumption expenditures....    .13    .29    .40    .60   -.30    .11    .29    .00    .03    .50    .32    .22    .09    .93   -.19   1.39   -.20    .19    .26
        Gross investment............    .02    .06    .04    .01    .01   -.05   -.01    .10    .06    .02    .01    .15    .10   -.07   -.06    .19    .13   -.05    .32
      Nondefense....................    .07    .14    .12    .35   -.22   -.13    .23    .28   -.09    .04    .20    .27    .07    .26    .24   -.12    .15   -.09   -.01
       Consumption expenditures.....    .07    .12    .11    .28   -.13   -.06    .19    .19   -.02    .06    .14    .15    .13    .26    .25   -.26    .23   -.13   -.01
       Gross investment.............    .00    .02    .01    .07   -.09   -.07    .04    .09   -.07   -.02    .06    .11   -.06    .00   -.01    .14   -.08    .04    .00

    State and local.................    .26    .21    .06    .01    .15    .29    .49    .62   -.74    .71    .33    .08    .20    .18   -.06   -.10    .25   -.06   -.03
        Consumption expenditures....    .20    .13    .06    .16    .10    .21    .29    .22    .13    .21    .01    .17    .11    .19    .06   -.05   -.02    .04    .02
        Gross investment............    .06    .08   -.01   -.15    .05    .08    .20    .40   -.88    .50    .31   -.09    .09   -.01   -.12   -.05    .27   -.10   -.05

Addenda:
    Goods...........................   -.71    .71   1.40   3.64  -1.19    .10  -1.17  -2.08  -1.40   1.38   2.54   -.37   2.12   -.92   1.37    .75   5.67   2.30   1.97
    Services........................   1.26   1.77   1.50   2.63    .80   1.95    .85   1.05    .77   1.61   2.25   2.38   1.37   2.02    .62   2.08   1.27   1.61   1.93
    Structures......................   -.04   -.29    .23    .15   -.07    .03    .09    .38   -.65  -1.00   -.08   -.10   -.13    .19   -.02    .26   1.27    .23    .00
    Motor vehicle output............   -.17    .38    .09   -.62   -.73   -.47   -.53    .58    .05    .92    .39    .20    .37   -.18   -.23    .07    .82    .13   -.29
    Final sales of computers........    .14    .10    .31    .47    .10    .19    .45   -.20   -.19    .22    .06    .06    .35    .26    .26    .25    .65    .29    .01
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                            --------------------------------------------          --------------------------------------------  -------------------------
                                       2003     I 03    II 03   III 03    IV 03     I 04r    2003     I 03    II 03   III 03    IV 03     I 04r    2003    IV 03     I 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 10,987.9 10,735.8 10,846.7 11,107.0 11,262.0 11,451.2 10,398.0 10,210.4 10,288.3 10,493.1 10,600.1 10,702.1    315.0    107.0    102.0

Personal consumption expenditures.  7,757.4  7,600.7  7,673.6  7,836.3  7,919.1  8,055.4  7,365.2  7,244.1  7,304.0  7,426.6  7,486.2  7,555.8    224.8     59.6     69.6

  Durable goods...................    941.6    898.2    926.2    975.1    967.0    957.1  1,027.5    965.0  1,005.1  1,069.1  1,070.8  1,060.7     70.3      1.7    -10.1
    Motor vehicles and parts......    424.0    402.1    414.5    447.2    432.2    412.6    441.9    414.5    429.5    466.9    456.7    435.7     18.6    -10.2    -21.0
    Furniture and household
     equipment....................    334.2    321.8    329.9    339.9    345.1    351.7    400.3    374.7    391.7    412.4    422.5    433.1     35.6     10.1     10.6
    Other.........................    183.4    174.3    181.8    188.0    189.7    192.8    187.3    177.6    185.9    191.4    194.5    196.6     17.1      3.1      2.1

  Nondurable goods................  2,209.7  2,175.7  2,170.8  2,230.0  2,262.2  2,329.9  2,121.0  2,090.5  2,096.9  2,134.3  2,162.4  2,198.6     77.4     28.1     36.2
    Food..........................  1,064.1  1,037.4  1,049.7  1,074.9  1,094.2  1,124.4    994.7    979.6    985.4  1,002.8  1,010.9  1,032.2     36.5      8.1     21.3
    Clothing and shoes............    311.2    304.8    307.5    315.1    317.3    327.1    334.4    325.7    331.9    339.5    340.6    352.7     15.3      1.1     12.1
    Gasoline, fuel oil, and other
     energy goods.................    210.3    222.4    196.9    209.2    212.7    231.2    198.9    203.1    192.9    194.7    204.8    202.9      -.4     10.1     -1.9
    Other.........................    624.1    611.1    616.7    630.8    637.9    647.2    593.6    582.2    587.4    598.3    606.8    612.1     26.3      8.5      5.3

  Services........................  4,606.2  4,526.8  4,576.6  4,631.2  4,689.9  4,768.5  4,225.7  4,190.7  4,208.4  4,237.2  4,266.4  4,307.2     83.9     29.2     40.8
    Housing.......................  1,198.5  1,181.5  1,191.4  1,204.9  1,216.4  1,229.2  1,085.6  1,078.0  1,082.8  1,088.7  1,092.8  1,098.8     23.7      4.1      6.0
    Household operation...........    425.9    422.6    424.2    428.5    428.3    437.1    396.2    396.6    393.4    396.8    398.0    402.8      1.7      1.2      4.8
      Electricity and gas.........    164.2    163.1    163.9    165.8    164.0    170.4    145.1    148.0    143.1    144.5    144.9    148.2      -.1       .4      3.3
      Other household operation...    261.7    259.5    260.3    262.7    264.3    266.6    251.2    248.5    250.5    252.4    253.2    254.6      2.0       .8      1.4
    Transportation................    293.6    292.3    292.8    295.3    294.1    293.1    278.2    281.6    278.8    277.2    275.1    274.9     -6.6     -2.1      -.2
    Medical care..................  1,302.4  1,263.1  1,289.2  1,315.1  1,342.3  1,369.0  1,190.0  1,169.3  1,182.4  1,196.9  1,211.4  1,224.9     57.9     14.5     13.5
    Recreation....................    319.2    312.6    317.2    321.3    325.7    333.2    291.1    287.5    290.1    291.9    294.8    299.0      6.3      2.9      4.2
    Other.........................  1,066.5  1,054.7  1,061.9  1,066.2  1,083.1  1,106.8    983.3    976.6    979.7    984.3    992.7  1,005.3       .1      8.4     12.6

Gross private domestic investment.  1,670.6  1,605.3  1,624.3  1,689.1  1,763.5  1,816.7  1,638.0  1,581.6  1,599.9  1,656.1  1,714.6  1,753.4     66.0     58.5     38.8

  Fixed investment................  1,673.0  1,606.2  1,630.1  1,699.5  1,756.0  1,791.1  1,635.2  1,577.7  1,601.4  1,661.0  1,700.6  1,721.7     69.4     39.6     21.1
    Nonresidential................  1,110.6  1,071.8  1,086.9  1,124.4  1,159.2  1,177.1  1,125.5  1,087.3  1,105.8  1,139.5  1,169.4  1,184.6     32.9     29.9     15.2
      Structures..................    259.2    256.1    259.2    259.8    261.9    260.4    237.5    236.5    238.8    237.7    236.9    232.4    -11.5      -.8     -4.5
      Equipment and software......    851.3    815.8    827.7    864.6    897.3    916.7    893.5    855.0    871.6    907.7    939.7    960.7     46.8     32.0     21.0
        Information processing
         equipment and software...    463.8    436.2    451.2    477.0    490.7    506.5    522.7    487.2    506.4    537.7    559.5    580.9     63.4     21.8     21.4
          Computers and peripheral
           equipment..............     97.2     86.8     93.5    101.8    106.8    107.3    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    181.1    173.4    177.6    185.1    188.4    196.1    182.4    174.4    178.6    185.0    191.5    199.7     14.9      6.5      8.2
          Other...................    185.4    175.9    180.1    190.2    195.5    203.1    194.8    184.3    188.6    200.2    206.0    214.9     17.7      5.8      8.9
        Industrial equipment......    133.6    133.4    133.2    134.1    133.5    136.8    131.1    131.4    131.0    131.4    130.6    132.5     -5.0      -.8      1.9
        Transportation equipment..    121.3    119.8    115.3    117.8    132.2    129.0    116.6    117.4    115.1    113.7    120.1    116.1    -11.6      6.4     -4.0
        Other equipment...........    132.7    126.3    128.1    135.7    140.9    144.4    128.5    122.6    123.9    131.1    136.3    140.0      4.2      5.2      3.7
    Residential...................    562.4    534.4    543.2    575.1    596.9    614.0    505.3    486.4    491.7    516.7    526.6    532.5     35.0      9.9      5.9

  Change in private inventories...     -2.4      -.9     -5.8    -10.5      7.5     25.6      -.7      1.6     -4.5     -9.1      9.0     25.5     -6.4     18.1     16.5
    Farm..........................     -2.3       .2     -2.7     -4.3     -2.3     -4.5     -1.1      1.2     -2.0     -2.8      -.7     -2.8      2.2      2.1     -2.1
    Nonfarm.......................      -.1     -1.2     -3.0     -6.2      9.8     30.1       .5       .3     -2.4     -5.9     10.0     29.7     -8.8     15.9     19.7

Net exports of goods and services.   -495.0   -487.6   -505.5   -490.6   -496.2   -538.1   -509.1   -490.0   -526.0   -505.2   -515.2   -535.6    -38.5    -10.0    -20.4

  Exports.........................  1,048.9  1,021.0  1,020.2  1,048.5  1,105.8  1,141.7  1,034.7  1,012.4  1,009.6  1,033.7  1,083.1  1,102.8     20.5     49.4     19.7
    Goods.........................    725.5    707.6    707.7    722.1    764.5    794.0    720.5    706.5    703.5    718.2    753.7    770.8     13.3     35.5     17.1
    Services......................    323.4    313.3    312.5    326.4    341.3    347.7    314.0    305.7    305.9    315.2    329.1    331.8      7.2     13.9      2.7

  Imports.........................  1,543.8  1,508.5  1,525.7  1,539.0  1,602.0  1,679.9  1,543.8  1,502.5  1,535.7  1,538.9  1,598.3  1,638.4     59.1     59.4     40.1
    Goods.........................  1,283.3  1,254.2  1,272.4  1,275.6  1,331.2  1,402.4  1,308.6  1,266.2  1,307.4  1,302.4  1,358.2  1,397.9     60.2     55.8     39.7
    Services......................    260.5    254.3    253.3    263.5    270.8    277.4    236.3    236.5    229.8    237.2    241.5    242.7      -.1      4.3      1.2

Government consumption expenditures
 and gross investment.............  2,054.8  2,017.4  2,054.2  2,072.1  2,075.6  2,117.3  1,898.4  1,869.0  1,902.8  1,911.1  1,910.7  1,924.7     61.5      -.4     14.0

  Federal.........................    757.2    723.0    764.7    769.6    771.5    801.3    704.3    675.5    712.0    714.3    715.5    730.2     56.3      1.2     14.7
    National defense..............    497.3    463.3    507.3    507.2    511.5    536.1    463.0    433.2    472.8    471.2    474.7    489.6     44.2      3.5     14.9
      Consumption expenditures....    437.3    408.6    447.5    443.7    449.5    465.0    401.9    377.3    411.8    406.9    411.7    418.5     39.7      4.8      6.8
      Gross investment............     60.0     54.7     59.8     63.5     62.0     71.1     61.0     55.7     60.8     64.5     63.0     72.0      4.4     -1.5      9.0
    Nondefense....................    259.9    259.7    257.4    262.4    260.0    265.2    241.4    242.4    239.3    243.1    240.8    240.6     12.2     -2.3      -.2
      Consumption expenditures....    225.6    227.3    221.4    228.5    225.2    230.2    207.1    209.9    203.4    209.3    206.0    205.7     10.8     -3.3      -.3
      Gross investment............     34.3     32.4     36.0     33.8     34.8     35.0     34.3     32.4     36.0     33.8     34.9     35.0      1.4      1.1       .1

  State and local.................  1,297.6  1,294.5  1,289.6  1,302.5  1,304.0  1,316.0  1,194.6  1,193.8  1,191.4  1,197.4  1,195.9  1,195.1      5.5     -1.5      -.8
      Consumption expenditures....  1,045.6  1,045.8  1,040.9  1,046.3  1,049.5  1,061.7    956.9    957.8    956.6    956.0    957.1    957.5      6.4      1.1       .4
      Gross investment............    252.0    248.7    248.7    256.2    254.5    254.3    237.8    236.0    234.7    241.5    238.8    237.6      -.8     -2.7     -1.2

Residual..........................    .....    .....    .....    .....    .....    .....    -18.6     -4.5    -11.5    -27.4    -31.1    -33.6    .....    .....    .....

Addenda:
  Final sales of domestic product. 10,990.3 10,736.7 10,852.4 11,117.4 11,254.5 11,425.6 10,395.0 10,206.4 10,289.5 10,497.7 10,586.4 10,671.2    318.1     88.7     84.8
  Gross domestic purchases........ 11,482.8 11,223.4 11,352.2 11,597.5 11,758.2 11,989.4 10,903.6 10,697.6 10,809.9 10,995.4 11,111.5 11,233.0    352.1    116.1    121.5
  Final sales to domestic
   purchasers..................... 11,485.2 11,224.3 11,357.9 11,608.0 11,750.7 11,963.8 10,900.6 10,693.5 10,811.1 11,000.1 11,097.8 11,202.1    355.2     97.7    104.3

  Gross domestic product.......... 10,987.9 10,735.8 10,846.7 11,107.0 11,262.0 11,451.2 10,398.0 10,210.4 10,288.3 10,493.1 10,600.1 10,702.1    315.0    107.0    102.0
  Plus: Income receipts from
   the rest of the world..........    317.3    296.8    299.5    312.1    360.7    363.0    301.6    283.4    285.6    296.1    341.4    340.8     11.6     45.3      -.6
  Less: Income payments to
   the rest of the world..........    273.6    269.0    266.2    274.3    284.8    300.7    260.1    256.4    253.8    260.7    269.6    282.2     -8.2      8.9     12.6
  Equals: Gross national product.. 11,031.6 10,763.7 10,880.0 11,144.8 11,337.9 11,513.5 10,439.5 10,237.6 10,320.2 10,528.6 10,671.7 10,760.7    334.5    143.1     89.0

  Net domestic product............  9,677.0  9,430.1  9,543.3  9,797.9  9,936.7 10,112.4  9,087.5  8,903.4  8,983.4  9,181.7  9,281.3  9,370.9    289.0     99.6     89.6
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003  II 00 III 00  IV 00   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.4    1.5    1.7    2.0    1.9    1.8    3.2    3.2    1.6    1.6    1.1    1.5    1.5    1.7    2.3    1.1    1.6    1.5    2.8

Personal consumption expenditures...    2.0    1.4    1.8    2.0    1.9    1.8    3.2    2.5     .5     .4     .7    2.9    2.0    1.7    2.8     .5    1.8    1.0    3.2
  Durable goods.....................   -1.9   -2.9   -3.7    -.5   -2.5   -1.0   -1.3   -3.1   -2.8   -2.2   -3.5   -2.9   -3.0   -3.0   -4.4   -3.9   -4.0   -3.9    -.3
  Nondurable goods..................    1.5     .5    2.1    3.7    3.4    1.4    1.3    3.7    -.9   -4.3    -.1    5.7    1.4    1.0    5.1   -2.1    3.8     .5    5.3
  Services..........................    3.2    2.7    2.9    1.7    2.1    2.6    5.1    3.2    1.8    3.3    2.0    2.8    3.4    3.1    3.2    2.7    2.0    2.3    2.9

Gross private domestic investment...    1.1     .0     .9    1.2    1.9     .8     .3    1.3    2.3     .0    -.7    -.7   -1.0    1.6    1.3     .0    2.0    3.6    2.8
  Fixed investment..................    1.1     .1    1.1    1.2    1.9     .9     .1    1.6    2.4     .0    -.8    -.7    -.7    1.7    1.9     .0    2.1    3.7    3.0
    Nonresidential..................    -.2    -.9    -.2     .3    1.4     .0   -1.8     .2     .6   -1.2   -1.3   -1.5   -1.5     .4    -.3   -1.2    1.6    1.8    1.0
      Structures....................    5.5    1.4    2.1    3.6    4.5    5.0    6.5    6.9    6.3    1.2    -.9     .5     .3    1.1    3.8    1.1    2.7    4.7    5.6
      Equipment and software........   -2.2   -1.7    -.9    -.8     .4   -1.7   -4.7   -2.1   -1.6   -2.1   -1.4   -2.1   -2.1     .2   -1.6   -1.8    1.2    1.0    -.3
    Residential.....................    4.6    2.4    3.9    3.9    3.2    3.4    5.3    5.1    7.0    2.9     .3    1.1     .9    4.5    6.4    2.2    3.1    7.5    7.1
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    -.4    -.4    2.1    2.1     .9     .4     .1   -1.2   -2.1   -3.6   -1.2    2.9    3.3     .6    3.6     .8    1.6    2.6    5.7
    Goods...........................    -.7    -.7    2.0    1.6     .3     .4    -.1   -1.6   -2.6   -3.8   -1.4    2.1    3.3     .6    3.5    1.7    -.2    3.6    6.4
    Services........................     .4     .3    2.2    3.5    2.5     .6     .6    -.3   -1.0   -3.0    -.9    4.6    3.2     .6    3.8   -1.3    5.7     .4    4.3
  Imports...........................   -2.5   -1.0    3.6     .7    4.2     .7   -2.8   -6.0   -5.3   -9.8   -1.6   10.5    3.7     .8   11.7   -4.1    2.7     .9    9.5
    Goods...........................   -3.0   -1.7    2.9    1.2    4.5     .8   -3.7   -6.6   -6.6  -11.1   -2.1   10.7    2.7     .5   11.8   -6.8    2.6     .3    9.8
    Services........................     .2    2.5    7.4   -2.0    2.5     .3    2.1   -3.0    1.4   -2.9     .7    9.3    8.6    2.0   11.3   10.4    3.3    3.8    8.0

Government consumption expenditures
 and gross investment...............    2.6    2.6    2.9    1.7    4.5    2.7    2.7    2.2    2.0    1.4    3.6    3.3    2.2    1.8    7.3     .1    1.7     .7    5.2
  Federal...........................    2.1    2.7    2.5   -1.1    5.0    1.6    2.0    1.6    2.4    1.7    5.9    2.3    1.2    -.5    7.7    1.4    1.3     .3    7.2
    National defense................    2.2    2.5    2.6    -.2    3.6     .9    3.6    1.6    2.4     .8    5.2    2.3    1.8    -.6    8.0    1.2    1.3     .4    6.5
    Nondefense......................    1.9    3.2    2.3   -2.6    7.5    2.7    -.7    1.8    2.3    3.6    7.3    2.1     .2    -.4    7.2    1.6    1.3     .1    8.6
  State and local...................    2.9    2.5    3.1    3.2    4.2    3.2    3.0    2.5    1.8    1.3    2.4    3.8    2.7    3.0    7.1    -.7    2.0    1.0    4.0

Addenda:
  Final sales of domestic product...    2.4    1.5    1.7    2.0    1.9    1.8    3.1    3.2    1.6    1.6    1.1    1.4    1.5    1.8    2.4    1.1    1.6    1.5    2.9
  Gross domestic purchases..........    2.0    1.4    1.9    1.8    2.3    1.8    2.6    2.3    1.0     .5    1.0    2.4    1.6    1.7    3.4     .4    1.8    1.3    3.5
  Final sales to domestic
   purchasers.......................    2.0    1.4    1.9    1.8    2.3    1.8    2.6    2.3    1.0     .5     .9    2.4    1.6    1.7    3.5     .4    1.8    1.4    3.5
  Gross national product (GNP)......    2.4    1.5    1.7    2.0    1.9    1.8    3.2    3.1    1.6    1.6    1.1    1.5    1.5    1.7    2.3    1.1    1.7    1.5    2.8

  Implicit price deflators:
    GDP.............................    2.4    1.5    1.7    1.7    2.1    1.6    3.1    3.2    1.6    1.9     .7    1.9    1.0    1.8    2.3    1.1    1.6    1.5    2.9
    Gross domestic purchases........    2.0    1.4    1.9    1.6    2.5    1.6    2.6    2.3    1.0     .8     .6    2.9    1.2    1.8    3.4     .4    1.8    1.3    3.5
    GNP.............................    2.4    1.5    1.7    1.7    2.1    1.6    3.1    3.2    1.6    1.9     .7    2.0    1.0    1.8    2.3    1.1    1.6    1.5    2.9
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2001       2002       2003       I 03      II 03     III 03      IV 03       I 04r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    100.506    102.710    105.918    104.008    104.801    106.887    107.977    109.016

Personal consumption expenditures..........    102.452    105.951    109.286    107.489    108.378    110.197    111.081    112.114
  Durable goods............................    104.144    110.868    119.017    111.779    116.420    123.834    124.037    122.861
  Nondurable goods.........................    101.852    104.949    108.926    107.358    107.685    109.607    111.053    112.908
  Services.................................    102.382    105.420    107.555    106.664    107.115    107.849    108.591    109.630

Gross private domestic investment..........     91.650     90.580     94.386     91.135     92.186     95.424     98.800    101.033
  Fixed investment.........................     96.826     93.258     97.392     93.968     95.378     98.932    101.290    102.543
    Nonresidential.........................     95.517     88.683     91.349     88.248     89.751     92.485     94.913     96.144
      Structures...........................     97.465     79.492     75.828     75.523     76.244     75.906     75.638     74.206
      Equipment and software...............     94.825     92.144     97.234     93.047     94.851     98.779    102.260    104.545
    Residential............................    100.351    105.228    113.073    108.828    110.021    115.616    117.827    119.151
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     94.773     92.512     94.385     92.353     92.097     94.290     98.800    100.599

Imports of goods and services..............     97.377    100.609    104.612    101.810    104.059    104.277    108.302    111.022

Government consumption expenditures and
 gross investment..........................    102.750    106.697    110.271    108.563    110.527    111.008    110.986    111.796
  Federal..................................    103.746    111.958    121.690    116.713    123.025    123.406    123.616    126.168
  State and local..........................    102.248    104.047    104.533    104.463    104.248    104.779    104.642    104.574

Addenda:
  Final sales of domestic product..........    101.441    103.242    106.501    104.569    105.420    107.553    108.462    109.331
  Gross domestic purchases.................    100.672    103.482    106.935    104.915    106.016    107.836    108.974    110.166
  Final sales to domestic purchasers.......    101.575    103.998    107.502    105.459    106.619    108.483    109.446    110.475
  Gross national product...................    100.462    102.527    105.921    103.873    104.711    106.825    108.277    109.180
-----------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                ---------------------------------------------------
                                                  2001       2002       2003       I 03      II 03     III 03      IV 03       I 04r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    102.376    103.949    105.686    105.163    105.440    105.870    106.270    107.019

Personal consumption expenditures..........    102.039    103.429    105.325    104.927    105.065    105.522    105.787    106.617
  Durable goods............................     98.086     95.208     91.682     93.074     92.147     91.207     90.298     90.232
  Nondurable goods.........................    101.530    102.075    104.179    104.079    103.529    104.488    104.618    105.976
  Services.................................    103.168    105.946    109.007    108.028    108.758    109.306    109.935    110.717

Gross private domestic investment..........    101.070    101.119    102.064    101.586    101.589    102.093    102.988    103.701
  Fixed investment.........................    101.087    101.155    102.296    101.808    101.796    102.319    103.260    104.035
    Nonresidential.........................     99.770     98.859     98.669     98.579     98.293     98.678     99.124     99.371
      Structures...........................    105.518    106.974    109.168    108.268    108.559    109.288    110.556    112.062
      Equipment and software...............     97.786     96.121     95.275     95.404     94.961     95.251     95.483     95.416
    Residential............................    104.628    107.105    111.263    109.881    110.485    111.321    113.363    115.320
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     99.628     99.273    101.354    100.842    101.044    101.434    102.094    103.525

Imports of goods and services..............     97.537     96.519    100.031    100.435     99.381    100.042    100.265    102.561

Government consumption expenditures and
 gross investment..........................    102.587    105.207    108.246    107.951    107.966    108.433    108.635    110.016
  Federal..................................    102.065    104.858    107.507    107.032    107.399    107.755    107.842    109.734
  State and local..........................    102.853    105.382    108.627    108.435    108.246    108.778    109.049    110.120

Addenda:
  Final sales of domestic product..........    102.381    103.955    105.723    105.198    105.474    105.906    106.313    107.072
  Gross domestic purchases.................    101.974    103.374    105.327    104.934    105.031    105.496    105.847    106.753
  Final sales to domestic purchasers.......    101.978    103.379    105.362    104.968    105.062    105.531    105.888    106.804
  Gross national product...................    102.372    103.936    105.684    105.156    105.438    105.872    106.268    107.015

  Implicit price deflators:
    Gross domestic product.................    102.373    103.945    105.673    105.146    105.427    105.851    106.244    107.000
    Final sales of domestic product........    102.381    103.955    105.726    105.196    105.471    105.904    106.311    107.070
    Gross domestic purchases...............    101.971    103.370    105.312    104.915    105.017    105.476    105.820    106.733
    Final sales to domestic purchasers.....    101.978    103.379    105.363    104.964    105.058    105.526    105.883    106.799
    Gross national product.................    102.368    103.932    105.671    105.138    105.425    105.853    106.243    106.996
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  See "Explanatory Note" at the end of the tables.

                                               Table 7.--Real Gross Domestic Product: Percent Change from Preceding Year
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           1988    1989    1990    1991    1992    1993    1994    1995    1996    1997    1998    1999    2000    2001    2002    2003
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     4.1     3.5     1.9     -.2     3.3     2.7     4.0     2.5     3.7     4.5     4.2     4.5     3.7      .5     2.2     3.1

Personal consumption expenditures......     4.1     2.8     2.0      .2     3.3     3.3     3.7     2.7     3.4     3.8     5.0     5.1     4.7     2.5     3.4     3.1
  Durable goods........................     6.0     2.2     -.3    -5.6     5.9     7.8     8.4     4.4     7.8     8.6    11.3    11.7     7.3     4.1     6.5     7.4
  Nondurable goods.....................     3.3     2.8     1.6     -.2     2.0     2.7     3.5     2.2     2.6     2.7     4.0     4.6     3.8     1.9     3.0     3.8
  Services.............................     4.0     3.0     2.9     1.7     3.5     2.8     2.9     2.6     2.9     3.3     4.2     4.0     4.5     2.4     3.0     2.0

Gross private domestic investment......     2.4     4.0    -3.4    -8.1     8.1     8.9    13.6     3.1     8.9    12.4     9.8     7.8     5.7    -8.4    -1.2     4.2
  Fixed investment.....................     3.3     3.0    -2.1    -6.5     5.9     8.6     9.3     6.5     9.0     9.2    10.2     8.3     6.5    -3.2    -3.7     4.4
    Nonresidential.....................     5.2     5.6      .5    -5.4     3.2     8.7     9.2    10.5     9.3    12.1    11.1     9.2     8.7    -4.5    -7.2     3.0
      Structures.......................      .6     2.0     1.5   -11.1    -6.0     -.7     1.8     6.4     5.6     7.3     5.1     -.4     6.8    -2.5   -18.4    -4.6
      Equipment and software...........     7.5     7.3      .0    -2.6     7.3    12.5    11.9    12.0    10.6    13.8    13.3    12.7     9.4    -5.2    -2.8     5.5
    Residential........................    -1.0    -3.0    -8.6    -9.6    13.8     8.2     9.6    -3.2     8.0     1.9     7.6     6.0      .8      .4     4.9     7.5
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................    16.0    11.5     9.0     6.6     6.9     3.2     8.7    10.1     8.4    11.9     2.4     4.3     8.7    -5.2    -2.4     2.0
    Goods..............................    18.8    11.9     8.4     6.9     7.5     3.3     9.7    11.7     8.8    14.3     2.2     3.8    11.2    -6.1    -4.0     1.9
    Services...........................     9.0    10.3    10.5     6.0     5.5     3.2     6.3     6.3     7.2     5.9     2.9     5.6     2.9    -3.1     1.4     2.3
  Imports..............................     3.9     4.4     3.6     -.6     7.0     8.8    11.9     8.0     8.7    13.6    11.6    11.5    13.1    -2.6     3.3     4.0
    Goods..............................     4.0     4.3     3.0     -.1     9.3    10.1    13.3     9.0     9.3    14.4    11.7    12.4    13.5    -3.2     3.7     4.8
    Services...........................     3.4     4.9     6.5    -2.6    -2.6     2.9     5.7     3.3     5.5     9.4    11.4     6.9    11.1      .4     1.4     -.1

Government consumption expenditures
 and gross investment..................     1.3     2.6     3.2     1.1      .5     -.9      .0      .5     1.0     1.9     1.9     3.9     2.1     2.8     3.8     3.3
  Federal..............................    -1.6     1.5     2.0     -.2    -1.7    -4.2    -3.7    -2.7    -1.2    -1.0    -1.1     2.2      .9     3.7     7.9     8.7
    National defense...................     -.5     -.5      .0    -1.1    -5.0    -5.6    -4.9    -3.8    -1.4    -2.8    -2.1     1.9     -.5     3.9     8.9    10.6
    Nondefense.........................    -5.1     8.3     8.3     2.4     6.9     -.7    -1.2     -.4     -.7     2.6      .7     2.8     3.5     3.5     6.2     5.3
  State and local......................     3.7     3.4     4.1     2.1     2.2     1.4     2.6     2.6     2.3     3.6     3.6     4.7     2.7     2.2     1.8      .5

Addenda:
  Final sales of domestic product......     4.3     3.4     2.1      .1     3.0     2.6     3.4     3.0     3.7     4.0     4.2     4.5     3.8     1.4     1.8     3.2
  Gross domestic purchases.............     3.2     3.0     1.4     -.8     3.3     3.2     4.4     2.4     3.8     4.8     5.3     5.3     4.4      .7     2.8     3.3
  Final sales to domestic purchasers...     3.4     2.8     1.6     -.6     3.1     3.2     3.8     2.8     3.8     4.3     5.3     5.4     4.5     1.6     2.4     3.4
  Gross national product...............     4.2     3.5     2.0     -.3     3.3     2.7     3.9     2.6     3.7     4.4     4.0     4.6     3.7      .5     2.1     3.3
  Real disposable personal income......     4.3     2.8     1.9      .5     3.4     1.0     2.7     2.8     3.0     3.5     5.8     3.0     4.8     1.8     3.8     2.7

  Price indexes:
    Gross domestic purchases...........     3.4     3.8     4.1     3.3     2.3     2.2     2.1     2.1     1.8     1.4      .6     1.6     2.5     2.0     1.4     1.9
    Gross domestic purchases excluding
     food and energy...................     3.7     3.6     3.7     3.5     2.6     2.3     2.2     2.2     1.5     1.3     1.0     1.4     1.9     1.9     1.7     1.4
    GDP................................     3.4     3.8     3.9     3.5     2.3     2.3     2.1     2.0     1.9     1.7     1.1     1.4     2.2     2.4     1.5     1.7
    GDP excluding food and energy......     3.4     3.6     3.7     3.6     2.5     2.4     2.2     2.1     1.7     1.7     1.2     1.5     2.0     2.1     1.8     1.4
    Personal consumption expenditures..     4.0     4.4     4.6     3.6     2.9     2.3     2.1     2.1     2.2     1.7      .9     1.7     2.5     2.0     1.4     1.8
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                          II 00  III 00   IV 00    I 01   II 01  III 01   IV 01    I 02   II 02  III 02   IV 02    I 03   II 03  III 03   IV 03    I 04r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     4.8     3.5     2.2     1.9      .2      .0      .0     1.2     1.8     3.0     2.8     2.1     2.4     3.6     4.3     4.8

Personal consumption expenditures......     4.6     4.5     4.1     2.6     2.5     2.0     2.7     3.6     3.7     3.7     2.7     2.3     2.5     3.7     4.0     4.3
  Durable goods........................     5.9     5.2     4.7     -.4     4.5     3.2     9.4     9.3     7.0     8.1     1.8     1.5     5.6    11.0    11.1     9.9
  Nondurable goods.....................     4.1     4.3     3.0     3.0     1.3     1.5     1.7     3.1     3.5     2.8     2.8     2.7     2.9     4.7     4.9     5.2
  Services.............................     4.5     4.4     4.5     3.1     2.7     2.0     1.8     2.6     3.1     3.2     2.9     2.3     1.7     1.9     2.2     2.8

Gross private domestic investment......    11.2     5.8     1.4      .3   -10.1    -9.7   -13.5    -8.6    -3.3     1.6     6.5     2.8     2.8     3.6     7.4    10.9
  Fixed investment.....................     7.7     5.5     5.1     1.6    -3.0    -4.2    -7.0    -7.0    -4.6    -3.1      .2     1.1     2.4     6.1     8.1     9.1
    Nonresidential.....................     9.9     7.9     7.8     3.1    -4.0    -6.5   -10.2   -10.8    -8.2    -6.4    -2.8    -1.2     1.3     4.6     7.4     8.9
      Structures.......................     6.3     9.6     8.8     5.3     -.4    -2.1   -12.4   -17.0   -19.0   -22.6   -14.9    -9.8    -5.3    -1.9     -.9    -1.7
      Equipment and software...........    11.1     7.3     7.5     2.4    -5.2    -8.2    -9.4    -8.5    -4.0      .1     1.6     1.8     3.4     6.7    10.0    12.4
    Residential........................     1.9     -.7    -1.9    -2.2     -.4     2.4     1.7     3.2     4.4     4.7     7.1     6.1     5.0     9.2     9.5     9.5
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................    10.2    10.1     6.5     3.7    -2.8    -9.8   -11.5    -9.5    -4.2     1.6     3.3     1.7     -.7      .6     6.4     8.9
    Goods..............................    12.6    13.7     8.5     4.8    -3.5   -12.2   -12.7   -12.1    -4.9     1.2      .8     2.0    -1.3     -.3     7.2     9.1
    Services...........................     4.5     1.6     1.8      .9    -1.3    -3.5    -8.3    -3.0    -2.5     2.6     9.3     1.1      .7     2.6     4.8     8.5
  Imports..............................    14.0    13.8    11.2     5.2     -.9    -6.8    -7.4    -4.0     2.2     6.2     9.4     5.3     3.5     2.6     4.5     9.0
    Goods..............................    14.6    14.1    11.3     5.3    -2.1    -7.5    -7.9    -4.8     3.3     7.1     9.9     6.4     4.6     2.9     5.4    10.4
    Services...........................    11.1    12.4    10.6     4.7     5.1    -3.3    -4.5      .5    -3.3     1.9     6.7      .2    -1.8     1.2      .1     2.6

Government consumption expenditures
 and gross investment..................     3.5     1.7      .4     2.6     2.7     2.1     3.6     3.3     2.9     4.6     4.5     3.3     4.1     3.9     2.1     3.0
  Federal..............................     4.6      .3    -2.2     3.8     1.4     3.6     6.3     6.2     7.1     8.2    10.1     7.9    10.9    10.2     5.9     8.1
    National defense...................     3.6    -1.6    -3.5     4.4     1.0     3.6     6.6     6.8     8.5     9.1    10.9     7.2    14.4    12.7     8.0    13.0
    Nondefense.........................     6.3     3.9      .3     2.7     2.0     3.5     5.7     5.1     4.6     6.5     8.7     9.2     4.7     5.6     1.9     -.7
  State and local......................     2.9     2.4     1.7     2.0     3.3     1.4     2.3     1.9      .8     2.8     1.6      .8      .5      .5      .0      .1

Addenda:
  Final sales of domestic product......     4.2     3.5     2.9     2.2     1.5     1.0     1.1     1.4     1.6     2.2     1.8     1.9     2.4     4.0     4.4     4.6
  Gross domestic purchases.............     5.5     4.2     3.0     2.2      .3      .0      .1     1.6     2.5     3.5     3.6     2.6     2.8     3.8     4.2     5.0
  Final sales to domestic purchasers...     4.9     4.2     3.6     2.4     1.6     1.0     1.3     1.8     2.2     2.8     2.7     2.3     2.8     4.1     4.2     4.8
  Gross national product...............     4.8     3.5     2.4     1.8      .1     -.2      .2     1.1     1.6     3.1     2.4     2.2     2.7     3.8     4.6     5.1
  Real disposable personal income......     4.9     5.7     4.4     2.0     1.0     2.6     1.3     4.0     5.4     2.2     3.5     1.6     1.7     3.7     3.8     4.4

  Price indexes:
    Gross domestic purchases...........     2.5     2.5     2.4     2.1     2.3     1.9     1.6     1.2     1.2     1.4     1.7     2.3     1.8     1.8     1.7     1.7
    Gross domestic purchases excluding
     food and energy...................     1.8     1.9     1.8     1.7     1.8     1.9     2.1     1.8     1.7     1.6     1.4     1.6     1.4     1.3     1.4     1.6
    GDP................................     2.1     2.3     2.2     2.2     2.5     2.4     2.4     1.9     1.4     1.4     1.4     1.7     1.6     1.7     1.6     1.8
    GDP excluding food and energy......     2.0     2.1     2.0     1.8     2.0     2.1     2.3     2.1     1.9     1.8     1.5     1.6     1.4     1.3     1.3     1.5
    Personal consumption expenditures..     2.5     2.4     2.3     2.2     2.3     2.0     1.6     1.0     1.1     1.5     1.8     2.4     1.8     1.7     1.5     1.6
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.

                     Table 9.--Relation of Gross Domestic Product, Gross National Product, and National Income
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2001       2002       2003       I 03      II 03     III 03      IV 03       I 04r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   10,100.8   10,480.8   10,987.9   10,735.8   10,846.7   11,107.0   11,262.0   11,451.2

Plus: Income receipts from the rest of the
 world.....................................      319.0      299.1      317.3      296.8      299.5      312.1      360.7      363.0
Less: Income payments to the rest of the
 world.....................................      283.8      277.6      273.6      269.0      266.2      274.3      284.8      300.7

Equals: Gross national product.............   10,135.9   10,502.3   11,031.6   10,763.7   10,880.0   11,144.8   11,337.9   11,513.5

Less: Consumption of fixed capital.........    1,266.9    1,288.6    1,310.9    1,305.7    1,303.4    1,309.1    1,325.3    1,338.9
Less: Statistical discrepancy..............     -112.2      -77.2       12.9       23.2       -8.3       38.2       -1.3      -16.8

Equals: National income....................    8,981.2    9,290.8    9,707.8    9,434.8    9,584.9    9,797.5   10,013.8   10,191.5
  Compensation of employees................    5,940.4    6,019.1    6,203.0    6,115.8    6,164.8    6,229.4    6,302.0    6,410.3
    Wage and salary accruals...............    4,942.9    4,974.6    5,100.2    5,034.6    5,070.8    5,118.8    5,176.6    5,249.2
    Supplements to wages and salaries......      997.6    1,044.5    1,102.8    1,081.2    1,093.9    1,110.6    1,125.4    1,161.2
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      770.6      797.7      846.9      813.5      838.8      860.9      874.3      895.0
  Rental income of persons with capital
   consumption adjustment..................      163.1      173.0      164.2      163.2      153.4      157.0      183.0      188.5
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................      770.4      904.2    1,069.9      927.1    1,022.8    1,124.2    1,205.6    1,226.5
  Net interest and miscellaneous payments..      568.4      582.4      583.2      589.3      581.7      579.9      581.8      591.0
  Taxes on production and imports less
   subsidies...............................      674.5      721.8      740.4      729.4      725.2      745.2      761.8      773.7
  Business current transfer payments.......       92.5       89.8       95.2       90.1       92.5       97.1      101.2      103.2
  Current surplus of government
   enterprises.............................        1.2        2.8        5.0        6.3        5.8        3.7        4.1        3.4

Addendum:
  Gross domestic income....................   10,213.0   10,558.0   10,974.9   10,712.7   10,855.0   11,068.8   11,263.3   11,468.0
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2001       2002       2003       I 03      II 03     III 03      IV 03       I 04r
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    8,713.1    8,910.3    9,208.0    9,048.7    9,145.9    9,256.3    9,381.0    9,522.5

  Compensation of employees, received......    5,940.4    6,019.1    6,203.0    6,114.4    6,166.2    6,229.4    6,302.0    6,408.8
    Wage and salary disbursements..........    4,942.9    4,974.6    5,100.2    5,033.2    5,072.2    5,118.8    5,176.6    5,247.7
    Supplements to wages and salaries......      997.6    1,044.5    1,102.8    1,081.2    1,093.9    1,110.6    1,125.4    1,161.2
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      770.6      797.7      846.9      813.5      838.8      860.9      874.3      895.0
    Farm...................................       25.0       14.3       19.5       13.0       20.0       21.5       23.3       18.9
    Nonfarm................................      745.6      783.4      827.4      800.5      818.8      839.4      850.9      876.1
  Rental income of persons with capital
   consumption adjustment..................      163.1      173.0      164.2      163.2      153.4      157.0      183.0      188.5
  Personal income receipts on assets.......    1,374.9    1,378.5    1,393.3    1,388.6    1,390.2    1,389.2    1,405.2    1,416.5
    Personal interest income...............    1,003.7      982.4      964.6      970.6      964.9      957.0      965.7      969.0
    Personal dividend income...............      371.2      396.2      428.7      418.0      425.3      432.2      439.5      447.6
  Personal current transfer receipts.......    1,192.6    1,292.2    1,377.5    1,337.6    1,369.7    1,398.7    1,403.8    1,422.2

  Less: Contributions for government
   social insurance........................      728.5      750.3      776.8      768.7      772.3      779.0      787.2      808.6

Less: Personal current taxes...............    1,243.7    1,053.1      991.4    1,009.4    1,000.2      938.5    1,017.7      991.3

Equals: Disposable personal income.........    7,469.4    7,857.2    8,216.5    8,039.2    8,145.8    8,317.8    8,363.3    8,531.2

Less: Personal outlays.....................    7,342.2    7,674.0    8,043.0    7,888.3    7,956.7    8,118.5    8,208.6    8,343.4

Equals: Personal saving....................      127.2      183.2      173.5      151.0      189.0      199.3      154.7      187.8

  Personal saving as a percentage of
   disposable personal income..............        1.7        2.3        2.1        1.9        2.3        2.4        1.9        2.2

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    7,320.2    7,596.7    7,801.1    7,662.0    7,753.5    7,882.9    7,906.1    8,002.1
-----------------------------------------------------------------------------------------------------------------------------------
  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
                                                              ---------------------------------------                 ------------------------------- -------
                                         2001    2002    2003    I 03   II 03  III 03   IV 03    I 04r   2002    2003   II 03  III 03   IV 03    I 04r   I 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
 valuation and capital consumption
 adjustments.........................   770.4   904.2 1,069.9   927.1 1,022.8 1,124.2 1,205.6 1,226.5    17.4    18.3    10.3     9.9     7.2     1.7    32.3

Less: Taxes on corporate income......   201.1   195.0   224.9   213.9   211.4   230.6   243.7   244.1    -3.0    15.3    -1.2     9.0     5.7      .2    14.1

Equals: Profits after tax with
 inventory valuation and capital
 consumption adjustments.............   569.3   709.1   845.0   713.2   811.3   893.7   961.9   982.3    24.6    19.2    13.8    10.1     7.6     2.1    37.7
  Net dividends......................   373.2   398.3   431.0   420.3   427.5   434.3   441.8   449.8     6.7     8.2     1.7     1.6     1.7     1.8     7.0
  Undistributed profits with
   inventory valuation and capital
   consumption adjustments...........   196.0   310.8   414.1   292.9   383.8   459.3   520.2   532.5    58.6    33.2    31.0    19.7    13.2     2.4    81.8

Cash flow:
  Net cash flow with inventory
   valuation and capital consumption
   adjustments.......................   937.3 1,058.2 1,164.1 1,043.3 1,129.4 1,206.6 1,277.2 1,297.3    12.9    10.0     8.3     6.8     5.9     1.6    24.3
    Undistributed profits with
     inventory valuation and capital
     consumption adjustments.........   196.0   310.8   414.1   292.9   383.8   459.3   520.2   532.5    58.6    33.2    31.0    19.7    13.2     2.4    81.8
    Consumption of fixed capital.....   741.3   747.3   750.1   750.4   745.6   747.2   757.1   764.8      .8      .4     -.6      .2     1.3     1.0     1.9

  Less: Inventory valuation
   adjustment........................     9.1    -2.2   -12.6   -28.1     1.2    -1.8   -21.7   -39.3   .....   .....   .....   .....   .....   .....   .....

  Equals: Net cash flow..............   928.2 1,060.4 1,176.7 1,071.4 1,128.2 1,208.4 1,298.9 1,336.6    14.2    11.0     5.3     7.1     7.5     2.9    24.8

Addenda:
  Profits before tax (without
   inventory valuation and capital
   consumption adjustments)..........   696.8   745.0   856.4   809.0   792.5   865.9   958.1   932.7     6.9    15.0    -2.0     9.3    10.6    -2.7    15.3
  Profits after tax (without
   inventory valuation and capital
   consumption adjustments)..........   495.6   549.9   631.5   595.0   581.0   635.4   714.5   688.5    11.0    14.8    -2.4     9.4    12.4    -3.6    15.7
  Inventory valuation adjustment.....     9.1    -2.2   -12.6   -28.1     1.2    -1.8   -21.7   -39.3   .....   .....   .....   .....   .....   .....   .....
  Capital consumption adjustment.....    64.5   161.5   226.2   146.3   229.2   260.1   269.2   333.1   150.3    40.1    56.7    13.5     3.5    23.7   127.7
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                      ---------------------------------------  ----------------------------------------------
                                                 2001    2002    2003    I 03   II 03  III 03   IV 03    I 04r   2002    2003   II 03  III 03   IV 03    I 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------
    Corporate profits with inventory
     valuation and capital consumption
     adjustments.............................   770.4   904.2 1,069.9   927.1 1,022.8 1,124.2 1,205.6 1,226.5   133.8   165.7    95.7   101.4    81.4    20.9

Domestic industries..........................   608.9   750.8   904.9   778.4   874.3   966.5 1,000.4 1,031.6   141.9   154.1    95.9    92.2    33.9    31.2
  Financial..................................   213.3   259.1   287.9   268.4   279.6   299.2   304.4   324.0    45.8    28.8    11.2    19.6     5.2    19.6
  Nonfinancial...............................   395.6   491.7   617.0   510.0   594.7   667.3   696.0   707.7    96.1   125.3    84.7    72.6    28.7    11.7

Rest of the world............................   161.5   153.4   165.0   148.7   148.5   157.7   205.2   194.8    -8.1    11.6     -.2     9.2    47.5   -10.4
  Receipts from the rest of the world........   178.6   202.4   239.4   215.4   220.8   236.2   285.3   291.0    23.8    37.0     5.4    15.4    49.1     5.7
  Less: Payments to the rest of the world....    17.1    49.1    74.4    66.6    72.3    78.4    80.1    96.2    32.0    25.3     5.7     6.1     1.7    16.1

    Corporate profits with inventory
     valuation adjustment....................   705.9   742.7   843.8   780.9   793.6   864.2   936.4   893.4    36.8   101.1    12.7    70.6    72.2   -43.0

Domestic industries..........................   544.4   589.4   678.7   632.1   645.1   706.4   731.2   698.6    45.0    89.3    13.0    61.3    24.8   -32.6
  Financial..................................   225.6   255.1   268.8   261.8   260.6   274.6   278.0   288.7    29.5    13.7    -1.2    14.0     3.4    10.7
    Federal Reserve banks....................    28.3    22.9    19.6    21.2    20.5    18.9    17.8    18.6    -5.4    -3.3     -.7    -1.6    -1.1      .8
    Other financial..........................   197.3   232.2   249.2   240.7   240.1   255.7   260.3   270.1    34.9    17.0     -.6    15.6     4.6     9.8

  Nonfinancial...............................   318.8   334.3   410.0   370.3   384.5   431.8   453.2   409.9    15.5    75.7    14.2    47.3    21.4   -43.3
    Utilities................................    24.1    22.0    24.4    28.1    21.1    21.5    26.7    26.0    -2.1     2.4    -7.0      .4     5.2     -.7
    Manufacturing............................    54.0    73.3    96.6    87.1    80.3    97.7   121.1    98.8    19.3    23.3    -6.8    17.4    23.4   -22.3
      Durable goods..........................   -24.9     8.8    20.2    17.1    13.9    19.4    30.3    16.8    33.7    11.4    -3.2     5.5    10.9   -13.5
        Fabricated metal products............     9.7     9.7    12.3     8.9    12.1    12.6    15.5    12.5      .0     2.6     3.2      .5     2.9    -3.0
        Machinery............................     3.2     1.5    -2.6    -2.8    -2.7    -2.4    -2.5    -3.3    -1.7    -4.1      .1      .3     -.1     -.8
        Computer and electronic products.....   -49.4   -18.4    -2.6    -5.6    -1.8    -1.5    -1.7     -.8    31.0    15.8     3.8      .3     -.2      .9
        Electrical equipment, appliances,
         and components......................     2.0     1.7    -1.7      .7     -.9    -1.5    -5.1    -7.4     -.3    -3.4    -1.6     -.6    -3.6    -2.3
        Motor vehicles, bodies and trailers,
         and parts...........................    -7.2    -1.0     1.1     7.3    -1.9    -3.5     2.4     4.6     6.2     2.1    -9.2    -1.6     5.9     2.2
        Other durable goods..................    16.7    15.3    13.8     8.6     9.1    15.7    21.7    11.2    -1.4    -1.5      .5     6.6     6.0   -10.5

      Nondurable goods.......................    78.9    64.6    76.4    70.0    66.4    78.4    90.8    82.0   -14.3    11.8    -3.6    12.0    12.4    -8.8
        Food and beverage and tobacco
         products............................    27.5    32.8    32.8    32.4    30.6    31.8    36.6    34.5     5.3      .0    -1.8     1.2     4.8    -2.1
        Petroleum and coal products..........    29.9     6.4    22.3    20.2    20.6    19.5    28.9    30.7   -23.5    15.9      .4    -1.1     9.4     1.8
        Chemical products....................    13.8    17.5    18.7    18.9    15.8    23.7    16.6    14.1     3.7     1.2    -3.1     7.9    -7.1    -2.5
        Other nondurable goods...............     7.7     7.9     2.5    -1.5     -.5     3.4     8.8     2.7      .2    -5.4     1.0     3.9     5.4    -6.1

    Wholesale trade..........................    51.6    49.1    45.4    39.8    42.6    51.0    48.2    40.1    -2.5    -3.7     2.8     8.4    -2.8    -8.1
    Retail trade.............................    71.1    76.7    80.1    72.9    85.0    84.3    78.2    78.9     5.6     3.4    12.1     -.7    -6.1      .7
    Transportation and warehousing...........     -.1    -2.3    11.9     5.6    12.9    14.7    14.5    10.8    -2.2    14.2     7.3     1.8     -.2    -3.7
    Information..............................   -27.2   -20.2    -5.4   -11.4    -8.0     2.3    -4.7   -11.6     7.0    14.8     3.4    10.3    -7.0    -6.9
    Other nonfinancial.......................   145.3   135.5   157.0   148.1   150.7   160.2   169.1   167.0    -9.8    21.5     2.6     9.5     8.9    -2.1

Rest of the world............................   161.5   153.4   165.0   148.7   148.5   157.7   205.2   194.8    -8.1    11.6     -.2     9.2    47.5   -10.4
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  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
                                                                                 ---------------------------------------------------
                                                   2001       2002       2003       I 03      II 03     III 03      IV 03       I 04r
------------------------------------------------------------------------------------------------------------------------------------
                                                                              Billions of dollars
                                            ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business.....................    5,299.3    5,410.6    5,650.3    5,479.2    5,581.7    5,720.2    5,820.2    5,917.3

Consumption of fixed capital................      610.5      618.2      623.3      622.9      619.4      621.3      629.4      635.7

Net value added.............................    4,688.9    4,792.4    5,027.1    4,856.3    4,962.3    5,098.9    5,190.8    5,281.6

  Compensation of employees.................    3,597.0    3,570.1    3,667.4    3,612.6    3,640.5    3,683.1    3,733.5    3,800.4
    Wage and salary accruals................    3,016.7    2,971.8    3,035.3    2,992.7    3,013.7    3,047.0    3,087.8    3,132.0
    Supplements to wages and salaries.......      580.4      598.3      632.1      619.9      626.8      636.1      645.7      668.4
  Taxes on production and imports less
   subsidies................................      440.3      464.5      480.8      474.1      469.0      486.0      494.2      500.1
  Net operating surplus.....................      651.5      757.7      878.8      769.6      852.8      929.7      963.1      981.1
    Net interest and miscellaneous
     payments...............................      205.8      206.9      203.7      204.5      201.4      202.9      206.2      210.5
    Business current transfer payments......       50.0       59.1       58.1       55.1       56.7       59.6       60.9       63.0
    Corporate profits with inventory
     valuation and capital consumption
     adjustments............................      395.6      491.7      617.0      510.0      594.7      667.3      696.0      707.7
      Taxes on corporate income.............      108.7      101.6      129.4      119.8      117.7      133.6      146.6      142.5
      Profits after tax with inventory
       valuation and capital consumption
       adjustments..........................      286.9      390.2      487.6      390.2      477.0      533.7      549.4      565.2
        Net dividends.......................      248.2      257.2      271.8      265.8      274.8      270.8      275.7      273.5
        Undistributed profits with
         inventory valuation and capital
         consumption adjustments............       38.7      133.0      215.8      124.4      202.2      262.9      273.7      291.6

Addenda:
  Profits before tax (without inventory
   valuation and capital consumption
   adjustments).............................      309.6      336.5      422.6      398.4      383.4      433.6      474.9      449.2
  Profits after tax (without inventory
   valuation and capital consumption
   adjustments).............................      200.9      234.9      293.1      278.6      265.7      299.9      328.3      306.7
  Inventory valuation adjustment............        9.1       -2.2      -12.6      -28.1        1.2       -1.8      -21.7      -39.3
  Capital consumption adjustment............       76.8      157.5      207.1      139.7      210.1      235.5      242.8      297.8
                                            ----------------------------------------------------------------------------------------
                                                                       Billions of chained (2000) dollars
                                            ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business\1\..................    5,235.4    5,339.0    5,564.9    5,412.1    5,505.2    5,629.6    5,712.8    5,779.7

Consumption of fixed capital\2\.............      609.0      624.1      636.8      634.5      630.9      639.4      642.5      642.1
Net value added\3\..........................    4,626.4    4,714.9    4,928.1    4,777.6    4,874.2    4,990.2    5,070.3    5,137.6
                                            ----------------------------------------------------------------------------------------
                                                                                    Dollars
                                            ----------------------------------------------------------------------------------------
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\....      1.012      1.013      1.015      1.012      1.014      1.016      1.019      1.024

  Compensation of employees (unit labor
   cost)....................................       .687       .669       .659       .668       .661       .654       .654       .658

  Unit nonlabor cost........................       .250       .253       .246       .251       .245       .243       .243       .243
    Consumption of fixed capital............       .117       .116       .112       .115       .113       .110       .110       .110
    Taxes on production and imports less
     subsidies plus business current
     transfer payments......................       .094       .098       .097       .098       .095       .097       .097       .097
    Net interest and miscellaneous payments.       .039       .039       .037       .038       .037       .036       .036       .036

  Corporate profits with inventory valuation
   and capital consumption adjustments (unit
   profits from current production).........       .076       .092       .111       .094       .108       .119       .122       .122
    Taxes on corporate income...............       .021       .019       .023       .022       .021       .024       .026       .025
    Profits after tax with inventory
     valuation and capital consumption
     adjustments............................       .055       .073       .088       .072       .087       .095       .096       .098
------------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  1. Effective December 10, 2003, the price index used to estimate
gross value added of nonfinancial corporate business has been
revised to reflect the 2000 reference year. Effective with the
estimates scheduled for release in July 2004, the current-dollar
value added will be deflated by a revised chain-type price index
calculated using gross value added price indexes for each
nonfinancial industry.
  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]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003  II 00 III 00  IV 00   I 01  II 01 III 01  IV 01   I 02  II 02 III 02  IV 02   I 03  II 03 III 03  IV 03   I 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................     .5    2.2    3.1    6.4    -.5    2.1    -.2    -.6   -1.3    2.0    4.7    1.9    3.4    1.3    2.0    3.1    8.2    4.1    3.9

  Goods.............................   -2.0    2.1    4.3   10.5   -3.3     .2   -3.4   -6.0   -4.1    4.1    7.7   -1.1    6.5   -2.8    4.3    2.2   18.3    7.1    6.0
  Services..........................    2.3    3.1    2.6    4.8    1.5    3.6    1.6    1.9    1.4    2.9    3.9    4.2    2.4    3.5    1.0    3.6    2.1    2.8    3.4
  Structures........................    -.4   -3.0    2.4    1.6    -.7     .4    1.0    4.0   -6.4   -9.6   -1.0   -1.1   -1.4    2.1    -.3    2.8   13.9    2.4     .0

  Motor vehicle output..............   -4.8   11.4    2.7  -14.7  -18.1  -12.6  -14.6   19.1    1.5   30.2   11.3    5.5   10.8   -4.9   -6.4    2.1   26.6    3.7   -8.2
  GDP excluding motor vehicle
   output...........................     .7    1.9    3.1    7.4     .3    2.7     .3   -1.3   -1.4    1.1    4.5    1.8    3.1    1.5    2.3    3.1    7.6    4.2    4.4

  Final sales of computers\1\.......   13.6   11.1   41.0   49.6    9.2   18.6   52.2  -17.1  -17.9   27.2    5.0    6.6   50.9   34.8   34.6   32.8   93.4   32.3     .4
  GDP excluding final sales of
   computers........................     .4    2.1    2.8    6.0    -.6    1.9    -.7    -.4   -1.1    1.8    4.7    1.8    3.0    1.0    1.7    2.8    7.6    3.9    3.9

  Farm gross value added\2\.........   -4.2    1.9    3.2    5.2    4.8  -18.2   -2.0  -15.8  -16.6  100.1  -64.2   94.9   50.5   -1.5  -39.5   59.0   -3.2  -16.6   -7.9

  Nonfarm business gross value
   added\3\.........................     .1    2.3    3.7    7.5    -.8    2.2    -.8   -1.0   -2.5    1.6    6.7     .8    4.0    1.6    2.4    3.8   10.4    4.2    4.7

Price indexes:
  GDP...............................    2.4    1.5    1.7    2.0    1.9    1.8    3.2    3.2    1.6    1.6    1.1    1.5    1.5    1.7    2.3    1.1    1.6    1.5    2.8
  GDP excluding food and energy.....    2.1    1.8    1.4    1.6    1.7    1.7    2.3    2.3    2.1    2.6    1.4    1.6    1.5    1.6    1.7     .7    1.3    1.4    2.4
  GDP excluding final sales of
   computers........................    2.7    1.8    1.8    2.2    2.1    1.9    3.7    3.4    1.8    1.8    1.4    1.6    1.7    1.9    2.5    1.2    1.8    1.6    3.0

  Gross domestic purchases..........    2.0    1.4    1.9    1.8    2.3    1.8    2.6    2.3    1.0     .5    1.0    2.4    1.6    1.7    3.4     .4    1.8    1.3    3.5
  Gross domestic purchases excluding
   food and energy..................    1.9    1.7    1.4    1.3    1.6    1.4    2.3    2.0    1.9    2.3    1.2    1.5    1.5    1.5    1.8     .9    1.3    1.5    2.6
  Gross domestic purchases excluding
   final sales of computers to
   domestic purchasers..............    2.3    1.6    2.1    2.1    2.5    2.0    3.2    2.6    1.3     .8    1.2    2.6    1.8    2.0    3.6     .5    2.0    1.5    3.6

  Personal consumption expenditures.    2.0    1.4    1.8    2.0    1.9    1.8    3.2    2.5     .5     .4     .7    2.9    2.0    1.7    2.8     .5    1.8    1.0    3.2
  Personal consumption expenditures
   excluding food and energy........    1.9    1.7    1.2    1.3     .9    1.5    2.8    1.9    1.3    2.5    1.0    1.9    2.0    1.5     .9     .8    1.0    1.2    2.0
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  1. For some components of final sales of computers, includes
computer parts.
  2. Farm output less intermediate goods and services purchased.
  3. Consists of GDP less gross value added of farm, of
households and institutions, and of general government.
  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 2001-02
annual percent change in real GDP uses prices for 2001 and 2002 as weights, and the 2001-02 annual
percent change in GDP prices uses quantities for 2001 and 2002 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.