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News Release: Gross Domestic Product

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

Effects of the Third-Quarter Hurricanes on Income Measures

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, FRIDAY, OCTOBER 29, 2004


Virginia H. Mannering:  (202) 606-5304                                    BEA 04-48
Recorded message:       (202) 606-5306
                                    

                        GROSS DOMESTIC PRODUCT:  THIRD QUARTER 2004 (ADVANCE)


    Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 3.7 percent in the third quarter of 2004,
according to advance estimates released by the Bureau of Economic Analysis.  In the second quarter, real
GDP increased 3.3 percent.
 
    The Bureau emphasized that the third-quarter "advance" estimates are based on source data that are
incomplete or subject to further revision by the source agency (see the box on page 3).  The third-quarter
"preliminary" estimates, based on more comprehensive data, will be released on November 30, 2004.

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

    Final sales of computers contributed 0.06 percentage point to the third-quarter change in real GDP
after contributing less than 0.0 percentage point to the second-quarter change.  Motor vehicle output
contributed 0.33 percentage point to the third-quarter change in real GDP after subtracting 0.58
percentage point from the second-quarter change.  

    The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.8 percent in the third quarter, compared with an increase of 3.5 percent in the second. 
Excluding food and energy prices, the price index for gross domestic purchases increased 1.5 percent in
the third quarter, compared with an increase of 2.5 percent in the second. 



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

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


    Real personal consumption expenditures increased 4.6 percent in the third quarter, compared with
an increase of 1.6 percent in the second.  Durable goods purchases increased 16.8 percent, in contrast to
a decrease of 0.3 percent.  Nondurable goods increased 3.9 percent, compared with an increase of 0.1
percent.  Services expenditures increased 2.7 percent, the same as in the second quarter.        

    Real nonresidential fixed investment increased 11.7 percent in the third quarter, compared with an
increase of 12.5 percent in the second.  Nonresidential structures increased 1.4 percent, compared with
an increase of 6.9 percent.  Equipment and software increased 14.9 percent, compared with an increase
of 14.2 percent.  Real residential fixed investment increased 3.1 percent, compared with an increase of
16.5 percent.                                                              

    Real exports of goods and services increased 5.1 percent in the third quarter, compared with an 
increase of 7.3 percent in the second.  Real imports of goods and services increased 7.7 percent,
compared with an increase of 12.6 percent.

    Real federal government consumption expenditures and gross investment increased 4.6 percent in
the third quarter, compared with an increase of 2.7 percent in the second.  National defense increased 9.3
percent, compared with an increase of 1.9 percent.  Nondefense decreased 4.7 percent, in contrast to an
increase of 4.4 percent.  Real state and local government consumption expenditures and gross
investment decreased 0.5 percent, in contrast to an increase of 1.9 percent.

    The real change in private inventories subtracted 0.48 percentage point from the third-quarter
change in real GDP, after adding 0.78 percentage point to the second-quarter change.  Private businesses
increased inventories $48.1 billion in the third quarter, following increases of $61.1 billion in the second
quarter and $40.0 billion in the first.

    Real final sales of domestic product -- GDP less change in private inventories -- increased 4.2
percent in the third quarter, compared with an increase of 2.5 percent in the second.


Gross domestic purchases

    Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 4.1 percent in the third quarter, compared with an increase of 4.2 percent in the
second. 


Disposition of personal income

    Current-dollar personal income increased $71.4 billion (3.0 percent) in the third quarter, compared
with an increase of $138.4 billion (6.0 percent) in the second.  Personal current taxes increased $18.4
billion, compared with an increase of $22.4 billion.

    Disposable personal income increased $53.0 billion in the third quarter, compared with an increase
of $116.0 billion in the second.  Real disposable personal income increased 1.4 percent, compared with
an increase of 2.4 percent.

    Personal outlays increased $123.8 billion (6.0 percent) in the third quarter, compared with an
increase of $97.1 billion (4.7 percent) in the second.  Personal saving -- disposable personal income less
personal outlays -- was $35.0 billion in the third quarter, compared with $105.7 billion in the second. 
The personal saving rate -- saving as a percentage of disposable personal income -- decreased from 1.2
percent in the second quarter to 0.4 percent in the third.

Current-dollar GDP

    Current-dollar GDP   the market value of the nation's output of goods and services -- increased 5.1
percent, or $146.0 billion, in the third quarter to a level of $11,803.5 billion.  In the second quarter,
current-dollar GDP increased 6.6 percent, or $184.9 billion.




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



    BEA's 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.
                                   


BOX
    Beginning with the GDP release on November 30, 2004, supplemental information on personal
consumption expenditures (PCE) prices will be added to several tables. In tables 6 and 8, "market-based
PCE," "market-based PCE excluding food and energy," and "PCE excluding food and energy" will be
shown as addenda items. The two market-based price indexes will also be added to appendix table A.
For several months, BEA has made the market-based indexes available at the time of the GDP news
release.  For more information on the market-based measures, see the discussion under FAQs on BEA's
Web site:  <http://www.bea.gov/bea/faq/national/markbsdPCE.htm>.


                        *          *          *


               Next release -- November 30, 2004, at 8:30 A.M. EST for:
               Gross Domestic Product: Third Quarter 2004 (Preliminary)
               Corporate Profits: Third Quarter 2004
        


                    Comparisons of Revisions to GDP

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

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

    The table below shows comparisons of the revisions between quarterly percent changes of GDP for the
different vintages of the estimates.  These comparisons can be used to assess the likely size of future revisions.  For
example, two-thirds of the revisions between the quarterly change in the advance estimate of real GDP and that in
the final estimate were within a range of -0.6 to +0.9 percentage point.
Thus, based on past history, the third-quarter change in real GDP now
estimated at 3.7 percent at an annual rate, is not likely to be revised below
3.1 percent or above 4.6 percent in the next two releases.



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


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

                         Current-dollar GDP


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

                                                             Real GDP

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

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


                                    Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003  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 04  II 04 III 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).     .8    1.9    3.0    2.1    -.5    1.2   -1.4    1.6    3.4    2.4    2.6     .7    1.9    4.1    7.4    4.2    4.5    3.3    3.7

Personal consumption expenditures...    2.5    3.1    3.3    3.4    1.7    1.0    1.8    7.0    1.8    2.8    2.9    2.5    2.7    3.9    5.0    3.6    4.1    1.6    4.6
  Durable goods.....................    4.3    6.5    7.4     .7    6.7    -.3    3.1   37.4   -8.5    4.4   14.0   -2.4    -.1   20.6   16.5    3.9    2.2    -.3   16.8
  Nondurable goods..................    2.0    2.6    3.7    3.7     .5    -.1    2.4    4.9    3.8     .8    -.6    5.3    5.0    1.6    6.9    5.1    6.7     .1    3.9
  Services..........................    2.4    2.6    2.2    3.9    1.1    1.8    1.2    2.3    3.3    3.5    2.4    2.2    2.1    1.8    1.9    2.8    3.3    2.7    2.7

Gross private domestic investment...   -7.9   -2.4    4.4   -2.3  -13.6   -7.6  -10.5  -22.7   16.8     .3    4.1    -.5    -.8    3.5   22.4   13.9   12.3   19.0    5.2
  Fixed investment..................   -3.0   -4.9    5.1     .7   -2.6   -8.7   -4.5  -10.6   -4.3   -3.5     .2    -.8    2.4   10.9   18.0   10.5    4.5   13.9    8.5
    Nonresidential..................   -4.2   -8.9    3.3     .9   -4.2  -13.6   -6.8  -13.3   -9.7   -9.6   -1.1   -3.2    -.1   11.8   15.7   11.0    4.2   12.5   11.7
      Structures....................   -2.3  -17.8   -5.6    1.2   -8.3   -4.0    6.0  -33.2  -18.5  -22.6  -16.0   -6.6  -13.0   14.5   -1.3    7.9   -7.6    6.9    1.4
      Equipment and software........   -4.9   -5.5    6.4     .8   -2.8  -16.9  -11.4   -4.2   -6.3   -4.5    4.6   -2.0    4.5   11.0   21.7   12.0    8.0   14.2   14.9
    Residential.....................     .4    4.8    8.8     .4    2.2    5.6    1.8   -3.7    9.3   11.3    2.8    4.2    7.5    9.1   22.4    9.6    5.0   16.5    3.1
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................   -5.4   -2.3    1.9   -2.7   -5.3  -12.7  -18.2  -10.8    4.7   11.0    3.1   -4.2   -1.5   -1.6   11.3   17.5    7.3    7.3    5.1
    Goods...........................   -6.1   -4.1    2.2   -5.4   -5.4  -17.1  -20.0   -8.8   -1.9   14.0    2.9  -10.2    4.0    -.8   10.1   16.1    9.1    6.0    7.8
    Services........................   -3.7    1.8    1.4    4.4   -5.0    -.7  -13.7  -15.3   21.7    4.5    3.5   10.5  -12.7   -3.4   14.1   20.6    3.4   10.2    -.8
  Imports...........................   -2.7    3.4    4.4   -1.6   -3.7  -12.6  -10.3   -3.4   12.5   11.4    5.4    9.6   -2.0    2.5    2.8   17.1   10.6   12.6    7.7
    Goods...........................   -3.2    3.7    4.7   -1.6   -3.4  -16.9   -8.6   -2.0   10.1   15.3    5.9    8.2   -1.8    5.1     .0   18.4   12.7   13.0    7.5
    Services........................    -.3    1.9    3.1   -1.9   -5.0   12.8  -18.3  -10.4   24.7   -5.8    2.8   16.6   -2.6   -9.4   17.9   11.1    1.2   10.6    8.8

Government consumption expenditures
 and gross investment...............    3.4    4.4    2.8    1.3    5.3    7.9   -1.5    8.5    4.7    4.4    2.1    4.0     .2    7.2     .1    1.6    2.5    2.2    1.4
  Federal...........................    3.9    7.5    6.6   -1.0    8.1    9.1     .0    8.8    8.2   12.8    2.9    9.1     .3   22.1   -3.3    4.8    7.1    2.7    4.6
    National defense................    3.9    7.7    9.0    1.7    7.0    4.3    2.4   12.5    5.8   11.5    3.4   13.5   -2.7   38.4   -7.7   11.6   10.6    1.9    9.3
    Nondefense......................    3.9    7.1    2.4   -5.7   10.1   18.0   -3.9    2.3   12.6   15.0    1.9    1.6    6.2   -3.9    5.8   -7.5     .2    4.4   -4.7
  State and local...................    3.2    2.8     .7    2.5    4.0    7.2   -2.3    8.4    2.9     .3    1.7    1.4     .1    -.4    2.2    -.1     .0    1.9    -.5

Addenda:
  Final sales of domestic product...    1.6    1.4    3.1    2.6    1.6    1.0    -.4    3.8     .3    1.8    2.0     .7    2.4    5.2    6.8    3.7    3.3    2.5    4.2
  Gross domestic purchases..........     .9    2.5    3.3    2.1    -.4     .7    -.8    2.2    4.4    2.8    2.9    2.4    1.7    4.4    6.4    4.7    5.0    4.2    4.1
  Final sales to domestic
   purchasers.......................    1.8    2.1    3.4    2.6    1.5     .5     .2    4.3    1.4    2.2    2.4    2.3    2.2    5.4    5.9    4.2    3.9    3.5    4.6
  Gross national product (GNP)......     .8    1.7    3.3    3.0   -1.1    1.5   -2.5    3.9    1.4    2.1    3.0    1.4    1.7    4.4    7.6    5.5    3.9    1.9  .....
  Disposable personal income........    1.9    3.1    2.3     .6    1.3   -1.7   11.5   -5.6   10.8    2.7   -1.7     .2    1.8    4.3    8.2    1.4    2.4    2.4    1.4

  Current-dollar measures:
    GDP.............................    3.2    3.5    4.9    3.8    2.8    4.4     .2    3.6    4.5    4.2    3.9    2.7    4.9    5.3    8.8    5.7    7.4    6.6    5.1
    Final sales of domestic product.    4.1    3.1    5.1    4.5    4.9    4.2    1.2    5.5    1.7    3.3    3.7    2.7    5.3    6.3    8.4    5.4    6.1    5.8    5.5
    Gross domestic purchases........    2.9    4.0    5.4    3.7    2.2    3.0     .2    3.1    5.3    5.6    4.4    4.3    5.7    4.8    8.1    5.9    8.6    7.9    6.1
    Final sales to domestic
     purchasers.....................    3.8    3.6    5.5    4.4    4.3    2.8    1.2    4.9    2.6    4.7    4.2    4.3    6.0    5.8    7.7    5.7    7.4    7.1    6.5
    GNP.............................    3.2    3.4    5.2    4.7    2.1    4.6    -.8    6.0    2.4    3.9    4.3    3.4    4.6    5.6    9.0    7.0    6.8    5.2  .....
    Disposable personal income......    4.1    4.6    4.2    2.4    4.6     .8   12.1   -5.0   11.8    5.7     .2    1.5    5.1    5.0    9.9    2.6    5.8    5.6    2.5
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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  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 04  II 04 III 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

    Gross domestic product..........     .8    1.9    3.0    2.1    -.5    1.2   -1.4    1.6    3.4    2.4    2.6     .7    1.9    4.1    7.4    4.2    4.5    3.3    3.7

Percentage points at annual rates:

  Personal consumption expenditures.   1.74   2.14   2.29   2.29   1.07    .67   1.20   4.71   1.32   1.98   2.02   1.74   1.84   2.72   3.58   2.50   2.90   1.10   3.23

    Durable goods...................    .37    .56    .63    .06    .55   -.03    .26   2.81   -.79    .37   1.16   -.21   -.01   1.64   1.38    .33    .19   -.02   1.33
      Motor vehicles and parts......    .20    .22    .22    .01    .36   -.17    .16   2.24  -1.34    .13   1.09   -.50   -.22    .86    .53   -.07   -.23   -.24    .93
      Furniture and household
       equipment....................    .19    .26    .27    .07    .23    .16    .15    .39    .41    .20    .04    .20    .07    .51    .62    .28    .32    .22    .30
      Other.........................   -.01    .08    .15   -.02   -.03   -.03   -.06    .18    .14    .04    .03    .08    .14    .27    .23    .12    .10    .00    .11

    Nondurable goods................    .40    .51    .73    .72    .09   -.03    .47    .95    .76    .15   -.12   1.03    .97    .31   1.38   1.01   1.33    .03    .79
      Food..........................    .15    .18    .37    .14    .24    .05    .09    .18    .26    .29   -.02    .31    .62    .26    .57    .25    .77    .22    .27
      Clothing and shoes............    .06    .12    .12    .04   -.06    .05    .04    .27    .25   -.01   -.12    .30   -.02    .23    .27    .11    .43   -.15    .13
      Gasoline, fuel oil, and other
       energy goods.................    .02    .02    .01    .25    .05   -.33    .11    .24    .00   -.14   -.01    .21    .01   -.29    .10    .33   -.04   -.29    .14
      Other.........................    .17    .17    .23    .29   -.14    .21    .23    .27    .24    .01    .03    .21    .37    .12    .43    .32    .17    .25    .25

    Services........................    .97   1.08    .93   1.51    .43    .73    .47    .95   1.36   1.46    .98    .93    .87    .77    .83   1.15   1.39   1.10   1.10
      Housing.......................    .28    .29    .15    .28    .31    .28    .21    .26    .42    .33    .19    .13    .12    .11    .16    .09    .23    .21    .25
      Household operation...........    .01    .03    .06    .41   -.25   -.35    .03   -.15    .09    .24    .01    .16    .01   -.11    .08    .29    .13   -.03   -.05
        Electricity and gas.........   -.03    .04    .03    .40   -.24   -.44    .00   -.07    .11    .19    .04    .19   -.04   -.19    .01    .25    .05   -.13   -.10
        Other household operation...    .03   -.01    .04    .01   -.02    .09    .02   -.08   -.02    .05   -.03   -.03    .05    .08    .07    .04    .07    .09    .04
      Transportation................   -.03   -.08   -.02    .01    .05   -.06   -.22   -.17    .01   -.04   -.10   -.01    .05   -.07   -.02   -.01    .05    .08    .04
      Medical care..................    .50    .66    .46    .42    .45    .49    .70    .67    .74    .63    .59    .55    .39    .40    .40    .36    .38    .52    .56
      Recreation....................    .07    .07    .09    .04    .15   -.03    .02    .07    .13    .05    .04    .11    .08    .13    .07    .11    .17    .01    .05
      Other.........................    .15    .11    .20    .34   -.28    .39   -.25    .28   -.03    .24    .25   -.02    .23    .31    .15    .31    .43    .32    .25

  Gross private domestic investment.  -1.39   -.37    .66   -.36  -2.44  -1.28  -1.76  -3.95   2.34    .05    .61   -.06   -.10    .54   3.16   2.04   1.86   2.85    .85

    Fixed investment................   -.50   -.80    .76    .13   -.43  -1.51   -.75  -1.81   -.71   -.55    .02   -.13    .35   1.55   2.59   1.57    .69   2.07   1.33
      Nonresidential................   -.52  -1.02    .33    .11   -.52  -1.76   -.83  -1.63  -1.13  -1.06   -.12   -.33   -.01   1.10   1.50   1.07    .42   1.21   1.15
        Structures..................   -.07   -.57   -.15    .04   -.29   -.14    .19  -1.27   -.59   -.70   -.45   -.17   -.33    .32   -.03    .18   -.19    .16    .03
        Equipment and software......   -.44   -.45    .48    .07   -.24  -1.62  -1.02   -.35   -.53   -.36    .33   -.16    .32    .78   1.53    .89    .61   1.05   1.12
          Information processing
           equipment and software...   -.08   -.18    .45    .58   -.08   -.93   -.53   -.21   -.29    .04    .38   -.15    .59    .51   1.04    .61    .62    .55    .18
            Computers and peripheral
             equipment..............    .02    .09    .24    .06    .16   -.22   -.26    .19    .18    .03    .25    .08    .25    .30    .39    .25    .06    .22    .08
            Software................   -.02   -.10    .07    .20    .01   -.30   -.07   -.19   -.14   -.03    .11   -.16    .12    .07    .28    .14    .24    .13    .06
            Other...................   -.08   -.16    .14    .32   -.25   -.42   -.20   -.21   -.33    .04    .02   -.08    .23    .14    .36    .22    .33    .20    .04
          Industrial equipment......   -.14   -.08    .00   -.12    .01   -.48   -.27   -.21    .24   -.21    .02   -.05    .09   -.02    .04   -.06    .08    .03    .34
          Transportation equipment..   -.18   -.17   -.04   -.36   -.22   -.03   -.27    .26   -.39   -.38   -.09    .00   -.31    .25    .14    .14   -.20    .28    .30
          Other equipment...........   -.04   -.02    .06   -.03    .05   -.19    .05   -.19   -.10    .18    .02    .04   -.06    .03    .31    .20    .10    .20    .30
      Residential...................    .02    .22    .43    .02    .10    .25    .08   -.18    .42    .51    .13    .20    .36    .44   1.09    .50    .27    .86    .18

    Change in private inventories...   -.88    .42   -.10   -.49  -2.01    .23  -1.02  -2.14   3.05    .60    .59    .07   -.45  -1.01    .57    .47   1.17    .78   -.48
      Farm..........................    .02   -.01    .02    .34    .00   -.28    .09   -.23    .37   -.47    .24    .02    .06   -.07    .06    .19    .06   -.10   -.07
      Nonfarm.......................   -.90    .44   -.12   -.83  -2.01    .51  -1.11  -1.91   2.69   1.07    .36    .05   -.51   -.94    .52    .29   1.10    .88   -.41

  Net exports of goods and services.   -.20   -.70   -.43   -.07   -.04    .49   -.56   -.66  -1.10   -.46   -.43  -1.69    .14   -.50    .64   -.66   -.76  -1.06   -.62

    Exports.........................   -.60   -.24    .18   -.31   -.59  -1.45  -2.04  -1.11    .43    .99    .29   -.42   -.15   -.15   1.02   1.55    .70    .70    .51
      Goods.........................   -.48   -.29    .14   -.45   -.43  -1.43  -1.60   -.63   -.13    .87    .19   -.72    .25   -.06    .64   1.00    .60    .41    .53
      Services......................   -.12    .05    .04    .14   -.16   -.02   -.44   -.48    .56    .13    .10    .30   -.40   -.10    .39    .56    .10    .30   -.02

    Imports.........................    .40   -.46   -.61    .24    .56   1.94   1.48    .45  -1.53  -1.45   -.72  -1.27    .29   -.34   -.39  -2.22  -1.46  -1.77  -1.13
      Goods.........................    .39   -.42   -.54    .19    .43   2.23   1.02    .21  -1.04  -1.59   -.65   -.91    .22   -.58    .00  -1.96  -1.43  -1.52   -.92
      Services......................    .01   -.04   -.07    .04    .12   -.28    .47    .25   -.49    .14   -.06   -.36    .06    .24   -.39   -.26   -.03   -.25   -.21

  Government consumption expenditures
   and gross investment.............    .60    .79    .52    .22    .92   1.35   -.28   1.48    .85    .81    .40    .75    .05   1.35    .03    .31    .48    .41    .26

    Federal.........................    .23    .46    .43   -.07    .46    .52    .00    .51    .49    .78    .19    .58    .04   1.40   -.23    .33    .48    .18    .31
      National defense..............    .15    .30    .38    .06    .25    .16    .09    .46    .23    .45    .14    .54   -.11   1.49   -.36    .50    .47    .09    .42
        Consumption expenditures....    .13    .25    .33    .11    .26    .06    .03    .45    .22    .29    .04    .63   -.16   1.39   -.40    .42    .29    .16    .36
        Gross investment............    .02    .06    .05   -.05   -.01    .10    .06    .02    .00    .16    .11   -.09    .05    .10    .03    .09    .19   -.08    .06
      Nondefense....................    .08    .16    .06   -.13    .20    .36   -.09    .05    .27    .33    .05    .04    .15   -.09    .13   -.18    .00    .10   -.11
       Consumption expenditures.....    .08    .14    .05   -.06    .15    .26    .01    .04    .19    .23    .12    .07    .14   -.23    .23   -.18   -.01   -.01   -.03
       Gross investment.............    .00    .02    .01   -.07    .05    .10   -.10    .01    .07    .10   -.07   -.03    .00    .13   -.10    .01    .01    .11   -.08

    State and local.................    .37    .33    .09    .29    .46    .83   -.28    .97    .36    .03    .21    .17    .02   -.05    .26   -.02    .00    .23   -.05
        Consumption expenditures....    .24    .21    .07    .21    .24    .24    .39    .38    .10    .16    .11    .14    .02    .04    .01    .08    .02    .00    .10
        Gross investment............    .13    .12    .02    .08    .22    .59   -.67    .59    .26   -.13    .09    .02    .00   -.09    .25   -.10   -.02    .23   -.15

Addenda:
    Goods...........................   -.59    .41   1.41    .10  -1.57   -.41  -1.89    .88   1.38    .31   1.54  -1.05   1.39   1.32   5.45   1.90   2.65    .82   2.35
    Services........................   1.30   1.69   1.35   1.95   1.04    .98    .93   1.58   1.94   2.39   1.29   1.71    .54   2.11    .67   1.77   1.76   1.30   1.30
    Structures......................    .04   -.24    .29    .03    .03    .66   -.44   -.87    .09   -.32   -.23    .08    .00    .67   1.29    .52    .07   1.19    .06
    Motor vehicle output............   -.17    .39    .19   -.47   -.69   1.03   -.20    .69    .25    .35    .62    .22   -.46    .11    .84    .11    .30   -.58    .33
    Final sales of computers........    .14    .08    .31    .19    .42   -.13   -.21    .19   -.02    .10    .31    .23    .25    .28    .64    .26    .00    .00    .06
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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   III 03    IV 03     I 04    II 04   III 04     2003   III 03    IV 03     I 04    II 04   III 04     2003    II 04   III 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 11,004.0 11,116.7 11,270.9 11,472.6 11,657.5 11,803.5 10,381.3 10,472.8 10,580.7 10,697.5 10,784.7 10,883.4    306.5     87.2     98.7

Personal consumption expenditures.  7,760.9  7,822.5  7,914.9  8,060.2  8,153.8  8,269.7  7,355.6  7,401.7  7,466.8  7,543.0  7,572.4  7,658.9    232.2     29.4     86.5

  Durable goods...................    950.7    972.7    971.1    976.3    975.5  1,006.1  1,030.6  1,059.6  1,069.7  1,075.5  1,074.7  1,117.3     71.0      -.8     42.6
    Motor vehicles and parts......    440.1    452.5    444.1    438.4    432.5    457.0    452.1    465.6    463.5    456.7    449.6    477.5     23.4     -7.1     27.9
    Furniture and household
     equipment....................    328.0    333.3    338.0    345.0    348.6    352.8    393.5    405.0    414.6    425.6    433.3    444.1     32.8      7.7     10.8
    Other.........................    182.6    186.9    189.0    193.0    194.4    196.2    186.5    190.5    194.0    196.9    196.8    200.0     15.6      -.1      3.2

  Nondurable goods................  2,200.1  2,219.2  2,250.1  2,316.6  2,354.6  2,382.9  2,112.4  2,125.3  2,152.0  2,187.3  2,188.0  2,209.3     75.0       .7     21.3
    Food..........................  1,064.5  1,074.6  1,091.8  1,120.3  1,137.5  1,152.5    995.1  1,002.2  1,008.6  1,028.4  1,034.3  1,041.3     36.7      5.9      7.0
    Clothing and shoes............    307.2    311.0    314.4    325.0    322.9    324.3    330.2    334.9    338.2    351.2    346.5    350.6     13.5     -4.7      4.1
    Gasoline, fuel oil, and other
     energy goods.................    208.2    207.6    210.7    229.7    243.2    247.8    197.3    194.6    203.3    202.1    195.0    198.3      1.3     -7.1      3.3
    Other.........................    620.1    626.0    633.1    641.5    651.0    658.3    589.6    593.6    602.1    606.6    613.4    620.1     23.3      6.8      6.7

  Services........................  4,610.1  4,630.6  4,693.6  4,767.3  4,823.8  4,880.7  4,220.3  4,227.9  4,256.7  4,291.7  4,320.0  4,348.4     91.7     28.3     28.4
    Housing.......................  1,188.4  1,193.4  1,202.8  1,215.4  1,232.7  1,247.3  1,076.1  1,078.1  1,080.3  1,086.0  1,091.5  1,097.9     14.1      5.5      6.4
    Household operation...........    431.3    431.8    438.1    445.6    447.6    450.5    400.2    398.7    406.0    409.3    408.4    407.0      6.1      -.9     -1.4
      Electricity and gas.........    167.3    166.7    171.2    175.7    174.3    174.9    147.2    144.7    150.6    151.9    148.8    146.4      2.5     -3.1     -2.4
      Other household operation...    264.0    265.0    266.8    270.0    273.3    275.6    253.0    254.2    255.2    257.1    259.7    260.9      3.6      2.6      1.2
    Transportation................    294.0    295.1    296.5    297.8    300.5    302.5    277.7    277.1    276.7    278.1    280.1    281.2     -2.2      2.0      1.1
    Medical care..................  1,301.1  1,312.1  1,334.0  1,356.8  1,379.1  1,404.6  1,184.3  1,189.3  1,198.3  1,207.9  1,221.0  1,235.5     45.0     13.1     14.5
    Recreation....................    317.2    319.0    323.4    330.8    333.0    336.6    290.3    291.2    294.1    298.3    298.5    299.8      8.8       .2      1.3
    Other.........................  1,078.1  1,079.1  1,098.8  1,120.9  1,130.9  1,139.2    990.7    992.5  1,000.3  1,011.2  1,019.4  1,025.8     19.6      8.2      6.4

Gross private domestic investment.  1,665.8  1,696.6  1,758.8  1,819.7  1,920.7  1,962.2  1,628.8  1,659.4  1,714.1  1,764.5  1,842.9  1,866.3     68.1     78.4     23.4

  Fixed investment................  1,667.0  1,700.2  1,755.2  1,783.5  1,861.7  1,914.7  1,627.3  1,660.6  1,702.7  1,721.4  1,778.3  1,815.0     78.4     56.9     36.7
    Nonresidential................  1,094.7  1,113.3  1,146.3  1,158.8  1,198.5  1,235.2  1,110.8  1,131.1  1,161.0  1,173.0  1,207.9  1,241.7     35.2     34.9     33.8
      Structures..................    261.6    262.3    268.2    266.0    275.5    283.0    237.4    237.9    242.4    237.7    241.7    242.5    -14.2      4.0       .8
      Equipment and software......    833.1    851.1    878.1    892.8    923.1    952.2    879.2    899.7    925.6    943.7    975.5  1,009.9     52.7     31.8     34.4
        Information processing
         equipment and software...    431.2    442.8    454.7    468.5    480.9    482.8    492.4    507.1    526.6    547.0    565.4    571.5     52.8     18.4      6.1
          Computers and peripheral
           equipment..............     95.3     99.7    104.5    104.4    108.8    108.1    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    165.8    169.1    170.5    176.8    180.0    181.7    171.2    174.6    178.5    185.6    189.5    191.4      7.6      3.9      1.9
          Other...................    170.0    174.0    179.7    187.4    192.2    193.0    179.4    183.9    190.4    200.2    206.2    207.5     15.1      6.0      1.3
        Industrial equipment......    139.8    140.8    139.5    143.1    145.0    155.9    137.6    138.4    136.8    139.0    139.7    149.2       .2       .7      9.5
        Transportation equipment..    126.6    128.8    140.0    134.5    143.2    150.2    121.6    124.3    127.8    122.7    130.0    138.0     -4.0      7.3      8.0
        Other equipment...........    135.5    138.7    144.0    146.6    153.9    163.2    131.2    134.0    139.3    142.1    147.5    155.9      6.7      5.4      8.4
    Residential...................    572.3    586.9    609.0    624.6    663.2    679.5    511.2    523.8    535.9    542.5    563.6    567.9     41.2     21.1      4.3

  Change in private inventories...     -1.2     -3.7      3.5     36.2     59.0     47.5      -.8     -3.5      8.6     40.0     61.1     48.1    -12.5     21.1    -13.0
    Farm..........................       .3      -.9      -.9      1.0     -2.4     -2.6       .3      -.7      3.5      5.1      3.0      1.1      1.9     -2.1     -1.9
    Nonfarm.......................     -1.5     -2.8      4.5     35.2     61.4     50.1     -1.1     -2.7      4.6     34.5     58.8     47.8    -14.6     24.3    -11.0

Net exports of goods and services.   -498.1   -488.8   -502.8   -546.8   -591.3   -627.8   -518.5   -508.7   -528.3   -550.1   -580.3   -598.0    -46.4    -30.2    -17.7

  Exports.........................  1,046.2  1,047.7  1,099.2  1,134.3  1,167.6  1,188.2  1,031.8  1,033.8  1,076.2  1,095.4  1,114.8  1,128.8     19.5     19.4     14.0
    Goods.........................    726.4    725.9    761.3    790.3    812.2    830.9    721.7    723.1    750.6    767.2    778.4    793.2     15.3     11.2     14.8
    Services......................    319.8    321.7    337.9    344.1    355.4    357.3    309.9    310.5    325.4    328.1    336.2    335.5      4.2      8.1      -.7

  Imports.........................  1,544.3  1,536.4  1,602.0  1,681.2  1,758.9  1,816.0  1,550.3  1,542.5  1,604.5  1,645.5  1,695.1  1,726.8     65.9     49.6     31.7
    Goods.........................  1,282.0  1,270.3  1,326.4  1,399.2  1,470.1  1,517.2  1,307.3  1,297.3  1,353.2  1,394.1  1,437.4  1,463.6     58.8     43.3     26.2
    Services......................    262.3    266.1    275.6    282.0    288.8    298.8    243.3    245.2    251.7    252.4    258.9    264.4      7.4      6.5      5.5

Government consumption expenditures
 and gross investment.............  2,075.5  2,086.4  2,100.0  2,139.5  2,174.3  2,199.4  1,909.4  1,916.0  1,923.7  1,935.8  1,946.5  1,953.1     51.5     10.7      6.6

  Federal.........................    752.2    756.7    767.5    793.3    804.4    816.6    689.6    693.1    701.2    713.3    718.1    726.1     43.0      4.8      8.0
    National defense..............    496.4    498.1    513.6    534.1    541.2    555.8    451.8    453.1    465.7    477.6    479.9    490.6     37.2      2.3     10.7
      Consumption expenditures....    436.1    437.1    450.2    465.2    473.6    486.5    390.3    391.1    401.4    408.5    412.5    421.7     32.1      4.0      9.2
      Gross investment............     60.4     61.0     63.4     69.0     67.6     69.4     61.6     62.1     64.6     69.9     67.7     69.4      5.0     -2.2      1.7
    Nondefense....................    255.7    258.7    253.9    259.1    263.2    260.8    237.6    239.9    235.2    235.4    237.9    235.1      5.6      2.5     -2.8
      Consumption expenditures....    222.5    225.9    221.1    225.9    226.6    226.5    204.0    206.7    202.0    201.8    201.5    200.8      5.0      -.3      -.7
      Gross investment............     33.2     32.8     32.8     33.2     36.5     34.3     33.5     33.1     33.2     33.6     36.8     34.4       .6      3.2     -2.4

  State and local.................  1,323.3  1,329.7  1,332.6  1,346.3  1,369.9  1,382.8  1,219.8  1,222.9  1,222.5  1,222.4  1,228.3  1,226.9      8.4      5.9     -1.4
      Consumption expenditures....  1,058.5  1,061.0  1,066.3  1,079.8  1,091.8  1,103.5    969.0    968.8    970.9    971.5    971.5    974.0      6.8       .0      2.5
      Gross investment............    264.9    268.7    266.2    266.4    278.0    279.3    250.9    254.3    251.6    251.0    257.1    253.1      1.7      6.1     -4.0

Residual..........................    .....    .....    .....    .....    .....    .....    -14.9    -23.5    -26.7    -31.3    -35.6    -42.2    .....    .....    .....

Addenda:
  Final sales of domestic product. 11,005.3 11,120.4 11,267.4 11,436.4 11,598.5 11,756.0 10,379.9 10,473.9 10,569.6 10,655.8 10,722.3 10,833.9    316.7     66.5    111.6
  Gross domestic purchases........ 11,502.2 11,605.5 11,773.7 12,019.4 12,248.8 12,431.3 10,895.7 10,978.3 11,104.3 11,241.9 11,358.1 11,474.0    351.1    116.2    115.9
  Final sales to domestic
   purchasers..................... 11,503.4 11,609.2 11,770.1 11,983.2 12,189.8 12,383.8 10,894.2 10,979.4 11,093.2 11,200.1 11,295.5 11,424.4    361.2     95.4    128.9

  Gross domestic product.......... 11,004.0 11,116.7 11,270.9 11,472.6 11,657.5 11,803.5 10,381.3 10,472.8 10,580.7 10,697.5 10,784.7 10,883.4    306.5     87.2     98.7
  Plus: Income receipts from
   the rest of the world..........    329.0    329.8    371.8    373.8    388.0    .....    311.9    312.1    350.7    349.6    359.8    .....     20.2     10.2    .....
  Less: Income payments to
   the rest of the world..........    273.9    278.2    284.6    300.3    351.9    .....    259.2    263.2    268.0    280.3    325.8    .....     -5.7     45.5    .....
  Equals: Gross national product.. 11,059.2 11,168.3 11,358.1 11,546.1 11,693.6    ..... 10,433.9 10,521.7 10,663.3 10,766.7 10,818.7    .....    332.2     52.0    .....

  Net domestic product............  9,650.1  9,756.2  9,896.7 10,117.6 10,282.3 10,292.4  9,045.8  9,132.0  9,228.4  9,344.1  9,424.1  9,515.0    267.9     80.0     90.9
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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  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 04  II 04 III 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.4    1.7    1.8    1.8    3.3    3.1    1.6    1.7    1.4    1.5    1.7    2.0    2.7    1.1    1.4    1.6    2.8    3.2    1.3

Personal consumption expenditures...    2.1    1.4    1.9    1.8    3.3    2.6     .6     .6     .9    2.9    2.0    1.4    3.2     .7    1.6    1.2    3.3    3.1    1.1
  Durable goods.....................   -1.9   -2.7   -3.4   -1.0   -1.4   -3.1   -2.8   -1.6   -3.8   -2.5   -2.1   -2.8   -3.7   -3.8   -4.4   -4.3     .0    -.1   -3.1
  Nondurable goods..................    1.5     .6    2.0    1.4    1.4    3.5    -.9   -4.0     .0    5.4    1.3    1.2    5.1   -2.2    3.5     .5    5.3    6.6     .9
  Services..........................    3.3    2.7    3.0    2.6    5.3    3.4    2.0    3.3    2.3    2.8    3.2    2.4    3.8    3.1    2.0    2.7    3.0    2.1    2.1

Gross private domestic investment...    1.0     .2    1.1     .8     .0    1.5    2.1     .2   -1.0    -.1    -.5    2.6    1.4    -.1    1.2    2.7    2.1    4.4    3.1
  Fixed investment..................    1.0     .2    1.2     .9    -.3    1.8    2.2     .1   -1.1    -.1    -.4    2.7    1.9    -.3    1.2    2.8    2.0    4.3    3.1
    Nonresidential..................    -.3    -.8    -.4     .0   -2.3     .6     .3   -1.0   -1.3   -1.1   -1.3     .6    -.5   -1.3     .3    1.2     .3    1.7    1.0
      Structures....................    5.4    2.4    2.1    5.0    6.0    6.5    6.6    2.1     .0    2.1    1.6    3.0    3.9     .0    1.3    1.4    4.8    7.6    9.8
      Equipment and software........   -2.3   -1.9   -1.2   -1.7   -5.1   -1.5   -2.0   -2.2   -1.7   -2.2   -2.2    -.1   -1.9   -1.7     .0    1.2   -1.1     .1   -1.4
    Residential.....................    4.6    2.5    4.4    3.4    5.5    5.0    6.9    2.8    -.8    2.1    1.6    7.1    6.8    1.7    3.1    5.8    5.4    9.1    6.9
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    -.4    -.4    2.1     .4     .1   -1.3   -2.0   -3.5   -1.2    3.0    3.0     .4    4.1    1.0     .8    3.2    5.7    4.6    2.0
    Goods...........................    -.7    -.7    2.0     .4    -.1   -1.6   -2.6   -3.8   -1.4    2.2    3.3     .5    3.5    1.6    -.6    4.2    6.4    5.3    1.6
    Services........................     .4     .4    2.4     .6     .6    -.7    -.6   -2.8    -.6    4.8    2.4     .3    5.4    -.6    4.0     .9    4.0    3.2    3.1
  Imports...........................   -2.5   -1.2    3.4     .7   -3.0   -5.9   -5.3  -10.0   -1.9   10.5    3.4     .5   11.3   -4.3    2.6     .9    9.6    6.4    5.5
    Goods...........................   -3.0   -1.8    2.9     .8   -3.8   -6.6   -6.5  -11.3   -2.0   10.8    2.6     .4   12.0   -6.7    2.4     .4    9.9    7.8    5.6
    Services........................     .1    1.7    5.9     .3    1.5   -2.2    1.2   -3.3   -1.2    8.8    7.7     .9    7.9    8.4    3.6    3.5    8.3    -.5    5.4

Government consumption expenditures
 and gross investment...............    2.5    2.7    3.2    2.7    3.1    1.8    1.6    1.1    4.2    3.1    2.7    3.3    7.4    -.5    2.2    1.0    5.1    4.3    3.3
  Federal...........................    1.9    3.3    3.6    1.6    1.9    1.1    2.2    1.8    7.4    1.4    1.8    5.1    8.5     .3    1.1    1.0    6.6    3.0    1.6
    National defense................    2.0    3.4    4.2     .9    3.5     .7    2.5     .8    7.1    1.6    2.9    7.7    8.6    -.3    1.1    1.3    5.7    3.5    1.8
    Nondefense......................    1.7    3.1    2.6    2.7   -1.0    1.8    1.6    3.4    8.0    1.1    -.2     .5    8.2    1.4    1.0     .3    8.3    1.9    1.2
  State and local...................    2.9    2.4    3.0    3.2    3.8    2.1    1.3     .8    2.5    4.0    3.2    2.4    6.8   -1.0    2.9    1.0    4.2    5.2    4.3

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

  Implicit price deflators:
    GDP.............................    2.4    1.7    1.8    1.6    3.3    3.1    1.7    2.0    1.0    1.8    1.3    2.0    2.9    1.1    1.3    1.4    2.7    3.2    1.3
    Gross domestic purchases........    2.0    1.5    2.0    1.6    2.7    2.2    1.1     .9     .8    2.8    1.4    1.9    3.9     .4    1.6    1.2    3.4    3.5    1.9
    GNP.............................    2.4    1.6    1.8    1.6    3.2    3.1    1.7    2.0    1.0    1.8    1.3    2.0    2.9    1.1    1.3    1.4    2.7    3.2  .....
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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     III 03      IV 03       I 04      II 04     III 04
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    100.751    102.626    105.749    106.681    107.780    108.969    109.858    110.863

Personal consumption expenditures..........    102.537    105.698    109.143    109.828    110.794    111.925    112.360    113.644
  Durable goods............................    104.327    111.150    119.378    122.733    123.902    124.572    124.482    129.416
  Nondurable goods.........................    102.027    104.630    108.481    109.145    110.517    112.331    112.367    113.457
  Services.................................    102.403    105.085    107.418    107.613    108.346    109.237    109.955    110.680

Gross private domestic investment..........     92.103     89.928     93.852     95.616     98.771    101.672    106.191    107.539
  Fixed investment.........................     97.047     92.253     96.924     98.904    101.412    102.529    105.913    108.103
    Nonresidential.........................     95.817     87.302     90.157     91.802     94.235     95.204     98.041    100.781
      Structures...........................     97.737     80.346     75.810     75.955     77.406     75.886     77.171     77.443
      Equipment and software...............     95.136     89.947     95.679     97.917    100.735    102.699    106.157    109.908
    Residential............................    100.357    105.178    114.392    117.201    119.916    121.400    126.122    127.084
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     94.565     92.343     94.116     94.300     98.170     99.924    101.690    102.969

Imports of goods and services..............     97.291    100.585    105.048    104.522    108.725    111.504    114.862    117.013

Government consumption expenditures and
 gross investment..........................    103.412    107.918    110.906    111.290    111.738    112.443    113.062    113.449
  Federal..................................    103.908    111.725    119.140    119.751    121.154    123.249    124.068    125.461
  State and local..........................    103.162    105.999    106.739    107.006    106.968    106.965    107.482    107.359

Addenda:
  Final sales of domestic product..........    101.644    103.102    106.346    107.309    108.290    109.173    109.854    110.998
  Gross domestic purchases.................    100.918    103.414    106.858    107.668    108.904    110.253    111.393    112.529
  Final sales to domestic purchasers.......    101.781    103.876    107.438    108.279    109.401    110.455    111.396    112.667
  Gross national product...................    100.788    102.494    105.865    106.755    108.192    109.241    109.769      .....
-----------------------------------------------------------------------------------------------------------------------------------
  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     III 03      IV 03       I 04      II 04     III 04
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    102.402    104.097    106.003    106.158    106.586    107.314    108.169    108.510

Personal consumption expenditures..........    102.094    103.548    105.511    105.689    106.005    106.860    107.683    107.980
  Durable goods............................     98.114     95.475     92.244     91.757     90.747     90.741     90.725     90.005
  Nondurable goods.........................    101.531    102.097    104.154    104.423    104.564    105.914    107.616    107.866
  Services.................................    103.257    106.083    109.237    109.529    110.266    111.085    111.667    112.245

Gross private domestic investment..........    101.013    101.221    102.304    102.276    102.968    103.514    104.644    105.436
  Fixed investment.........................    101.023    101.232    102.435    102.401    103.101    103.618    104.709    105.505
    Nonresidential.........................     99.683     98.909     98.546     98.431     98.729     98.793     99.220     99.474
      Structures...........................    105.403    107.908    110.176    110.255    110.633    111.926    113.984    116.681
      Equipment and software...............     97.708     95.868     94.754     94.588     94.862     94.611     94.626     94.282
    Residential............................    104.633    107.246    111.951    112.097    113.675    115.179    117.710    119.690
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     99.624     99.275    101.395    101.355    102.146    103.565    104.746    105.276

Imports of goods and services..............     97.497     96.326     99.615     99.606     99.837    102.163    103.760    105.164

Government consumption expenditures and
 gross investment..........................    102.544    105.313    108.702    108.898    109.167    110.522    111.703    112.609
  Federal..................................    101.907    105.288    109.081    109.181    109.447    111.203    112.020    112.455
  State and local..........................    102.868    105.317    108.485    108.736    109.007    110.131    111.524    112.707

Addenda:
  Final sales of domestic product..........    102.406    104.100    106.025    106.179    106.608    107.332    108.178    108.518
  Gross domestic purchases.................    101.994    103.489    105.571    105.721    106.086    106.980    107.913    108.395
  Final sales to domestic purchasers.......    101.998    103.491    105.592    105.741    106.107    106.997    107.923    108.404
  Gross national product...................    102.399    104.087    105.997    106.156    106.579    107.308    108.164      .....

  Implicit price deflators:
    Gross domestic product.................    102.399    104.092    105.998    106.148    106.523    107.246    108.093    108.454
    Final sales of domestic product........    102.407    104.100    106.025    106.173    106.601    107.325    108.172    108.511
    Gross domestic purchases...............    101.992    103.484    105.566    105.713    106.028    106.916    107.842    108.344
    Final sales to domestic purchasers.....    101.998    103.491    105.592    105.735    106.102    106.992    107.917    108.398
    Gross national product.................    102.396    104.082    105.992    106.146    106.516    107.240    108.087      .....
-----------------------------------------------------------------------------------------------------------------------------------
  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      .8     1.9     3.0

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     3.1     3.3
  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     4.3     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     2.0     2.6     3.7
  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     2.6     2.2

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    -7.9    -2.4     4.4
  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    -3.0    -4.9     5.1
    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    -4.2    -8.9     3.3
      Structures.......................      .6     2.0     1.5   -11.1    -6.0     -.7     1.8     6.4     5.6     7.3     5.1     -.4     6.8    -2.3   -17.8    -5.6
      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    -4.9    -5.5     6.4
    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     4.8     8.8
  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    -5.4    -2.3     1.9
    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    -4.1     2.2
    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    -3.7     1.8     1.4
  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    -2.7     3.4     4.4
    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     4.7
    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     -.3     1.9     3.1

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     3.4     4.4     2.8
  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     3.9     7.5     6.6
    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     7.7     9.0
    Nondefense.........................    -5.1     8.3     8.3     2.4     6.9     -.7    -1.2     -.4     -.7     2.6      .7     2.8     3.5     3.9     7.1     2.4
  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     3.2     2.8      .7

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     1.6     1.4     3.1
  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      .9     2.5     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     1.8     2.1     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      .8     1.7     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     1.9     3.1     2.3

  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     1.5     2.0
    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     1.8     1.6
    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     1.7     1.8
    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     2.0     1.6
    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     2.1     1.4     1.9
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                          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 04   II 04  III 04
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     2.2     1.9      .6      .4      .2     1.2     1.5     2.5     2.3     1.9     2.3     3.5     4.4     5.0     4.8     3.9

Personal consumption expenditures......     4.1     2.9     2.5     2.0     2.8     2.9     3.3     3.6     2.5     2.7     3.0     3.5     3.8     4.2     3.6     3.5
  Durable goods........................     4.7      .8     3.2     2.5    10.8     6.6     7.8    10.6     1.5     3.8     7.6     8.2     9.9    10.5     5.4     5.4
  Nondurable goods.....................     3.0     3.0     1.6     1.6     1.9     2.7     3.0     2.2     2.3     2.6     2.8     4.7     4.6     5.1     4.7     4.0
  Services.............................     4.5     3.3     2.8     2.0     1.6     2.2     2.6     2.9     2.9     2.6     2.1     2.0     2.2     2.5     2.7     2.9

Gross private domestic investment......     1.4     -.5    -8.5    -8.6   -13.8    -7.1    -5.1    -1.5     5.0      .7     1.5     5.7     9.4    12.8    16.8    12.5
  Fixed investment.....................     5.1     1.6    -2.9    -3.8    -6.7    -7.1    -5.8    -4.6    -2.1     -.4     3.1     7.4    10.3    10.9    11.6     9.3
    Nonresidential.....................     7.8     3.2    -3.9    -6.1    -9.6   -10.9    -9.9    -8.5    -6.0    -3.6     1.7     5.8     9.4    10.6    10.8     9.8
      Structures.......................     8.8     4.6     -.6    -1.4   -11.1   -13.7   -18.3   -22.9   -16.1   -14.8    -6.0    -2.1     1.5     3.0     1.3     2.0
      Equipment and software...........     7.5     2.7    -5.1    -7.8    -9.0    -9.8    -6.7    -2.7    -2.2      .5     4.4     8.4    12.1    13.1    13.9    12.2
    Residential........................    -1.9    -2.3     -.1     2.5     1.4     3.1     4.5     4.7     6.9     6.4     5.9    10.6    12.0    11.3    13.2     8.4
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................     6.5     3.4    -2.9    -9.9   -11.9    -9.6    -4.0     1.7     3.5     1.9    -1.1      .8     6.1     8.4    10.8     9.2
    Goods..............................     8.5     4.8    -3.2   -12.2   -13.0   -12.2    -5.0     1.2      .8     2.3    -1.2      .5     7.1     8.5    10.3     9.7
    Services...........................     1.8      .1    -2.0    -4.0    -8.9    -3.1    -1.8     2.7     9.8     1.0     -.9     1.5     3.8     8.3    11.9     8.0
  Imports..............................    11.2     5.9    -1.4    -7.2    -7.6    -3.9     2.1     6.3     9.7     6.0     3.8     3.2     4.9     8.1    10.7    12.0
    Goods..............................    11.3     6.3    -2.6    -7.8    -7.9    -4.8     3.3     7.1     9.8     6.7     4.3     2.8     5.1     8.8    10.8    12.8
    Services...........................    10.6     4.2     4.7    -3.7    -5.9      .7    -3.7     2.0     8.9     2.4     1.4     5.0     3.7     4.7    10.0     7.8

Government consumption expenditures
 and gross investment..................      .4     2.5     3.0     3.2     5.0     4.8     4.0     4.9     3.8     2.7     3.3     2.8     2.2     2.8     1.6     1.9
  Federal..............................    -2.2     3.6     1.7     4.0     6.4     6.4     7.3     8.1     8.2     6.1     8.3     6.6     5.5     7.3     2.7     4.8
    National defense...................    -3.5     4.2     1.3     3.8     6.5     6.2     8.0     8.2     8.5     6.2    12.1     9.0     8.5    12.1     3.8     8.3
    Nondefense.........................      .3     2.5     2.6     4.2     6.3     6.9     6.2     7.8     7.6     6.1     1.4     2.4      .0    -1.5      .6    -2.0
  State and local......................     1.7     1.9     3.7     2.8     4.2     4.0     2.2     3.3     1.6      .9      .7      .8      .4      .4     1.0      .3

Addenda:
  Final sales of domestic product......     2.9     2.2     1.6     1.2     1.5     1.2     1.4     2.0     1.2     1.7     2.6     3.8     4.5     4.7     4.1     3.4
  Gross domestic purchases.............     3.0     2.3      .7      .4      .4     1.6     2.1     3.1     3.1     2.4     2.8     3.7     4.3     5.1     5.1     4.5
  Final sales to domestic purchasers...     3.6     2.6     1.7     1.2     1.6     1.6     2.0     2.6     2.1     2.3     3.1     3.9     4.4     4.9     4.4     4.1
  Gross national product...............     2.4     1.9      .7      .2      .4     1.0     1.2     2.6     2.0     2.0     2.6     3.7     4.8     5.3     4.7   .....
  Real disposable personal income......     4.4     2.4     1.3     2.8     1.2     3.5     4.6     1.4     2.9      .7     1.1     3.5     3.9     4.0     3.6     1.9

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

                     Table 9.--Relation of Gross Domestic Product, Gross National Product, and National Income
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2001       2002       2003     III 03      IV 03       I 04      II 04     III 04
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   10,128.0   10,487.0   11,004.0   11,116.7   11,270.9   11,472.6   11,657.5   11,803.5

Plus: Income receipts from the rest of the
 world.....................................      322.4      301.8      329.0      329.8      371.8      373.8      388.0      .....
Less: Income payments to the rest of the
 world.....................................      278.8      274.7      273.9      278.2      284.6      300.3      351.9      .....

Equals: Gross national product.............   10,171.6   10,514.1   11,059.2   11,168.3   11,358.1   11,546.1   11,693.6      .....

Less: Consumption of fixed capital.........    1,281.5    1,303.9    1,353.9    1,360.6    1,374.2    1,355.0    1,375.2    1,511.1
Less: Statistical discrepancy..............      -89.6      -15.3       25.6       36.6       12.8       63.0       67.0      .....

Equals: National income....................    8,979.8    9,225.4    9,679.6    9,771.1    9,971.1   10,128.1   10,251.4      .....
  Compensation of employees................    5,942.1    6,069.5    6,289.0    6,324.7    6,406.7    6,489.4    6,568.0    6,641.9
    Wage and salary accruals...............    4,942.8    4,976.3    5,103.6    5,128.6    5,188.9    5,240.7    5,301.4    5,360.7
    Supplements to wages and salaries......      999.3    1,093.2    1,185.5    1,196.1    1,217.8    1,248.8    1,266.5    1,281.1
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      771.9      769.6      834.1      852.0      864.7      872.1      901.4      903.2
  Rental income of persons with capital
   consumption adjustment..................      167.4      170.9      153.8      148.8      167.1      172.8      172.6      150.8
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................      767.3      874.6    1,021.1    1,057.1    1,129.1    1,165.6    1,173.9      .....
  Net interest and miscellaneous payments..      566.3      532.9      543.0      542.8      545.3      554.5      548.5      547.0
  Taxes on production and imports less
   subsidies...............................      673.3      724.4      751.3      757.4      769.4      782.9      796.3      806.5
  Business current transfer payments.......       92.8       80.9       77.7       78.9       80.1       82.7       83.5       78.2
  Current surplus of government
   enterprises.............................       -1.4        2.8        9.5        9.3        8.7        8.1        7.4        6.5

Addendum:
  Gross domestic income....................   10,217.6   10,502.3   10,978.5   11,080.1   11,258.1   11,409.6   11,590.5      .....
-----------------------------------------------------------------------------------------------------------------------------------

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2001       2002       2003     III 03      IV 03       I 04      II 04     III 04
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    8,724.1    8,878.9    9,161.8    9,209.3    9,330.0    9,445.0    9,583.4    9,654.8

  Compensation of employees, received......    5,942.1    6,069.5    6,289.0    6,324.7    6,406.7    6,487.9    6,569.4    6,641.9
    Wage and salary disbursements..........    4,942.8    4,976.3    5,103.6    5,128.6    5,188.9    5,239.2    5,302.9    5,360.7
    Supplements to wages and salaries......      999.3    1,093.2    1,185.5    1,196.1    1,217.8    1,248.8    1,266.5    1,281.1
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      771.9      769.6      834.1      852.0      864.7      872.1      901.4      903.2
    Farm...................................       19.7        9.7       21.8       24.8       24.7       17.9       18.9       10.7
    Nonfarm................................      752.2      759.9      812.3      827.2      840.0      854.2      882.5      892.5
  Rental income of persons with capital
   consumption adjustment..................      167.4      170.9      153.8      148.8      167.1      172.8      172.6      150.8
  Personal income receipts on assets.......    1,380.0    1,334.6    1,322.7    1,314.4    1,325.8    1,337.1    1,352.3    1,366.4
    Personal interest income...............    1,011.0      946.7      929.9      922.8      932.0      936.2      941.7      945.0
    Personal dividend income...............      369.0      387.9      392.8      391.6      393.8      400.9      410.6      421.3
  Personal current transfer receipts.......    1,193.9    1,282.7    1,335.4    1,346.2    1,350.7    1,379.0    1,400.4    1,413.9

  Less: Contributions for government
   social insurance........................      731.1      748.3      773.2      776.7      785.0      803.9      812.8      821.3

Less: Personal current taxes...............    1,237.3    1,051.2    1,001.9      941.7    1,009.4    1,006.6    1,029.0    1,047.4

Equals: Disposable personal income.........    7,486.8    7,827.7    8,159.9    8,267.6    8,320.5    8,438.4    8,554.4    8,607.4

Less: Personal outlays.....................    7,354.5    7,668.5    8,049.3    8,107.8    8,209.4    8,351.6    8,448.7    8,572.5

Equals: Personal saving....................      132.3      159.2      110.6      159.8      111.1       86.8      105.7       35.0

  Personal saving as a percentage of
   disposable personal income..............        1.8        2.0        1.4        1.9        1.3        1.0        1.2         .4

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    7,333.3    7,559.5    7,733.8    7,822.9    7,849.6    7,897.0    7,944.3    7,971.6
-----------------------------------------------------------------------------------------------------------------------------------
  1. Personal income is also equal to national income less corporate
profits with inventory valuation and capital consumption adjustments,
taxes on production and imports less subsidies, contributions for
government social insurance, net interest and miscellaneous payments,
business current transfer payments, current surplus of government
enterprises, and wage accruals less disbursements, plus personal
income receipts on assets, and personal current transfer receipts.
  2. Equals disposable personal income deflated by the implicit price
deflator for personal consumption expenditures.

                      Appendix Table A.--Real Gross Domestic Product and Related Aggregates and Price Indexes: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2001   2002   2003  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 04  II 04 III 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................     .8    1.9    3.0    2.1    -.5    1.2   -1.4    1.6    3.4    2.4    2.6     .7    1.9    4.1    7.4    4.2    4.5    3.3    3.7

  Goods.............................   -1.7    1.2    4.3     .2   -4.5   -1.3   -5.5    2.6    4.1     .9    4.7   -3.2    4.3    4.1   17.7    5.8    8.2    2.5    7.3
  Services..........................    2.4    3.0    2.3    3.6    1.9    1.8    1.7    2.8    3.4    4.2    2.2    3.0     .9    3.6    1.1    3.1    3.0    2.3    2.3
  Structures........................     .4   -2.4    3.0     .4     .4    7.0   -4.3   -8.5     .9   -3.3   -2.4     .9     .0    7.3   13.9    5.4     .7   12.7     .5

  Motor vehicle output..............   -4.7   11.6    4.2  -12.6  -18.5   36.3   -5.7   22.0    7.3   10.3   18.4    6.0  -12.4    3.0   26.3    2.9    8.8  -15.2   10.0
  GDP excluding motor vehicle
   output...........................    1.0    1.5    3.0    2.7     .2     .2   -1.2     .9    3.3    2.1    2.1     .5    2.5    4.1    6.8    4.2    4.3    4.0    3.5

  Final sales of computers\1\.......   13.8    8.8   41.0   18.6   48.2  -11.2  -19.4   23.7   -3.7   12.2   46.0   30.9   35.1   37.8   93.7   29.0     .1     .1    6.4
  GDP excluding final sales of
   computers........................     .6    1.8    2.8    1.9    -.9    1.4   -1.2    1.4    3.4    2.3    2.3     .5    1.7    3.8    6.8    4.0    4.5    3.3    3.7

  Farm gross value added\2\.........   -8.3    6.5    4.0  -18.2   -1.3  -31.0  -20.4   94.2  -39.2   69.9   26.1  -19.5  -13.9   52.3     .5  -30.6  -31.3  -21.3   11.1

  Nonfarm business gross value
   added\3\.........................     .4    1.8    3.8    2.2   -1.1    1.2   -2.9    1.2    4.0    1.7    3.6    1.4    2.4    5.3    9.3    4.6    5.7    4.2    4.1

Price indexes:
  GDP...............................    2.4    1.7    1.8    1.8    3.3    3.1    1.6    1.7    1.4    1.5    1.7    2.0    2.7    1.1    1.4    1.6    2.8    3.2    1.3
  GDP excluding food and energy.....    2.1    2.0    1.6    1.7    2.4    2.3    2.1    2.6    1.7    1.8    1.6    1.7    2.3     .8    1.1    1.5    2.3    2.7    1.6
  GDP excluding final sales of
   computers........................    2.7    1.9    2.0    1.9    3.8    3.3    1.8    1.9    1.6    1.7    1.9    2.2    2.9    1.2    1.6    1.7    2.9    3.3    1.4

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

  Personal consumption expenditures.    2.1    1.4    1.9    1.8    3.3    2.6     .6     .6     .9    2.9    2.0    1.4    3.2     .7    1.6    1.2    3.3    3.1    1.1
  Personal consumption expenditures
   excluding food and energy........    1.9    1.8    1.3    1.5    2.8    2.1    1.4    2.6    1.2    2.0    2.0     .9    1.5    1.1     .9    1.3    2.1    1.7     .7
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  1. For some components of final sales of computers, includes
computer parts.
  2. Farm output less intermediate goods and services purchased.
  3. Consists of GDP less gross value added of farm, of
households and institutions, and of general government.
  See "Explanatory Note" at the end of the tables.



     Explanatory Note: NIPA Measures of Quantities and Prices


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

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

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

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

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

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