skip to Main Content
BEA Logo
News
 
 


News Release: Gross Domestic Product and Corporate Profits

Updated November 30, 2004. See the notice below.

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. EST, TUESDAY, NOVEMBER 30, 2004


Virginia H. Mannering:  (202) 606-5304   (GDP)                                                         BEA 04-53
Kenneth A. Petrick:     (202) 606-9738   (Profits)
Recorded message:       (202) 606-5306



               GROSS DOMESTIC PRODUCT:  THIRD QUARTER 2004 (PRELIMINARY)
               CORPORATE PROFITS:  THIRD QUARTER 2004 (PRELIMINARY)


    Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 3.9 percent in the third quarter of 2004,
according to preliminary estimates released by the Bureau of Economic Analysis.  In the second quarter,
real GDP increased 3.3 percent. 

    The GDP estimates released today are based on more complete source data than were available for
the advance estimates issued last month.  In the advance estimates, the increase in real GDP was 3.7
percent (see "Revisions" on page 3).

    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 0.18 percentage point to the third-quarter change in real GDP
after contributing less than 0.01 percentage point to the second-quarter change.  Motor vehicle output
contributed 0.33 point to the third quarter change in real GDP after subtracting 0.58 percentage point
from the second-quarter change.    


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 price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.8 percent in the third quarter, the same as in the advance estimate; this index increased 3.5
percent in the second quarter.  Excluding food and energy prices, the price index for gross domestic
purchases increased 1.6 percent in the third quarter, compared with an increase of 2.5 percent in the
second.  

    Real personal consumption expenditures increased 5.1 percent in the third quarter, compared with
an increase of 1.6 percent in the second.  Real nonresidential fixed investment increased 12.9 percent,
compared with an increase of 12.5 percent.  Nonresidential structures decreased 0.3 percent, in contrast
to an increase of 6.9 percent.  Equipment and software increased 17.2 percent, compared with an
increase of 14.2 percent.  Real residential fixed investment increased 1.7 percent, compared with an
increase of 16.5 percent.

    Real exports of goods and services increased 6.3 percent in the third quarter, compared with an
increase of 7.3 percent in the second.  Real imports of goods and services increased 6.0 percent,
compared with an increase of 12.6 percent.

    Real federal government consumption expenditures and gross investment increased 4.7 percent in
the third quarter, compared with an increase of 2.7 percent in the second.  National defense increased 9.8
percent, compared with an increase of 1.9 percent.  Nondefense decreased 5.2 percent, in contrast to an
increase of 4.4 percent.  Real state and local government consumption expenditures and gross
investment decreased 0.8 percent, in contrast to an increase of 1.9 percent.

    The real change in private inventories subtracted 0.91 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 $35.9 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 4.9
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 4.0 percent in the third quarter, compared with an increase of 4.2 percent in the
second. 


Gross national product

    Real gross national product -- the goods and services produced by the labor and property supplied
by U.S. residents -- increased 4.2 percent in the third quarter, compared with an increase of 1.9 percent
in the second.  GNP includes, and GDP excludes, net receipts of income from the rest of the world,
which increased $6.4 billion in the third quarter after decreasing $35.3 billion in the second; in the third
quarter, receipts increased $13.9 billion, and payments increased $7.5 billion.


Current-dollar GDP

    Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
5.3 percent, or $152.5 billion, in the third quarter to a level of $11,810.0 billion.  In the second quarter,
current-dollar GDP increased 6.6 percent, or $184.9 billion.


Revisions

    The preliminary estimate of the third-quarter increase in real GDP is 0.2 percentage point, or $6.3
billion, higher than the advance estimate issued last month.  The upward revision to the percentage
change in real GDP primarily reflected a downward revision to imports of goods and upward revisions to
personal consumption expenditures for nondurable goods, to equipment and software, and to private
farm inventory investment that were partly offset by a downward revision to private nonfarm inventory
investment.


                                               Advance            Preliminary
                                           (Percent change from preceding quarter)

Real GDP...............................          3.7                   3.9
Current-dollar GDP.....................          5.1                   5.3
Gross domestic purchases price index...          1.8                   1.8



                           Corporate Profits

    Profits from current production (corporate profits with inventory valuation and capital
consumption adjustments) decreased $27.6 billion in the third quarter.  In the second quarter, profits
increased $8.3 billion.  Current-production cash flow (net cash flow with inventory valuation and capital
consumption adjustments) -- the internal funds available to corporations for investment -- increased
$20.4 billion in the third quarter, in contrast to a decrease of $5.7 billion in the second.

    Third-quarter profits from current production were reduced by $79.7 billion dollars because of
Hurricanes Charley, Frances, Ivan, and Jeanne.  Benefits paid by insurance companies reduced profits by
$69.3 billion.  In addition, corporate profits were reduced by $10.4 billion for uninsured losses.

     Taxes on corporate income decreased $9.8 billion in the third quarter, in contrast to an increase of
$14.7 billion in the second.  Profits after tax with inventory valuation and capital consumption
adjustments decreased $17.8 billion in the third quarter, after decreasing $6.4 billion in the second.
Dividends increased $10.8 billion, compared with an increase of $9.8 billion; current-production
undistributed profits decreased $28.6 billion, compared with a decrease of $16.2 billion.
    
    Domestic profits decreased $36.5 billion in the third quarter, in contrast to an increase of $28.3
billion in the second.  Domestic profits of financial corporations decreased $46.7 billion in the third
quarter, compared with a decrease of $7.9 billion in the second.  Domestic profits of nonfinancial
corporations increased $10.2 billion in the third quarter, compared with an increase of $36.2 billion in
the second.  In the third 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
nonlabor costs, while unit labor costs were unchanged.                          
    
    The foreign component of profits (rest-of-the-world profits) increased $8.8 billion in the third
quarter, in contrast to a decrease of $20.0 billion in the second.  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 third-
quarter increase was accounted for by an increase in receipts and a decrease in payments.

    Profits before tax with inventory valuation adjustment is the best available measure of industry
profits because estimates of the capital consumption adjustment by industry do not exist.  This measure
reflects the depreciation-accounting practices used for federal income tax returns.  According to this
measure, domestic profits of financial corporations decreased, and domestic profits of nonfinancial
corporations increased.  The increases in profits of nonfinancial corporations was largest in "other"
nonfinancial, in wholesale trade, in manufacturing, and in information.  Profits decreased in retail trade,
in transportation and warehousing, and in utilities.

    Profits before tax decreased $24.0 billion in the third quarter, in contrast to an increase of $25.9
billion in the second.  The before-tax measure of profits does not reflect, as does profits from current
production, the capital consumption and inventory valuation adjustments.  These adjustments convert
depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to
the current-cost measures used in the national income and product accounts.  The capital consumption
adjustment decreased $12.1 billion in the third quarter (from $233.3 billion to $221.2 billion), compared
with a decrease of $6.9 billion in the second.  The inventory valuation adjustment increased $8.5 billion
(from -$47.8 billion to -$39.3 billion), in contrast to a decrease of $10.8 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 -- December 22, 2004, at 8:30 A.M. EST for:
          Gross Domestic Product: Third Quarter 2004 (Final)
          Corporate Profits: Third Quarter 2004 (Revised)




Release dates in 2005


Gross domestic product

                  2004: IV and 2004 annual    2005:I      2005:II        2005:III
Advance.......          January 28            April 28    July 29        October 28
Preliminary...          February 25           May 26      August 31      November 30
Final.........          March 30              June 29     September 29   December 21

Corporate Profits
Preliminary...            ....                May 26      August 31      November 30
Final.........          March 30              June 29     September 29   December 21


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

NOTICE

This release was initially labeled "BEA 04-52." The correct number is "BEA 04-53."

This change does not affect any other content in this release. 

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 

                                    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 04rIII 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       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    3.9

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    5.1
  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   17.2
  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    4.8
  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    2.9

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    2.8
  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    8.8
    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   12.9
      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    -.3
      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   17.2
    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    1.7
  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    6.3
    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    9.1
    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     .2
  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    6.0
    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    5.6
    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    8.3

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    1.2
  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    4.7
    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    9.8
    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   -5.2
  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    -.8

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    4.9
  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    4.0
  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    4.9
  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    4.2
  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    2.8    2.0

  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    5.3
    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    6.3
    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    5.9
    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    6.8
    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    5.6
    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    6.0    3.1
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the second
quarter of 2004.
  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 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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    3.9

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   3.53

    Durable goods...................    .37    .56    .63    .06    .55   -.03    .26   2.81   -.79    .37   1.16   -.21   -.01   1.64   1.38    .33    .19   -.02   1.37
      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    .97
      Furniture and household
       equipment....................    .19    .26    .27    .07    .23    .16    .15    .39    .41    .20    .04    .20    .07    .51    .62    .28    .32    .22    .33
      Other.........................   -.01    .08    .15   -.02   -.03   -.03   -.06    .18    .14    .04    .03    .08    .14    .27    .23    .12    .10    .00    .06

    Nondurable goods................    .40    .51    .73    .72    .09   -.03    .47    .95    .76    .15   -.12   1.03    .97    .31   1.38   1.01   1.33    .03    .96
      Food..........................    .15    .18    .37    .14    .24    .05    .09    .18    .26    .29   -.02    .31    .62    .26    .57    .25    .77    .22    .41
      Clothing and shoes............    .06    .12    .12    .04   -.06    .05    .04    .27    .25   -.01   -.12    .30   -.02    .23    .27    .11    .43   -.15    .17
      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    .07
      Other.........................    .17    .17    .23    .29   -.14    .21    .23    .27    .24    .01    .03    .21    .37    .12    .43    .32    .17    .25    .31

    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   1.21
      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    .00
        Electricity and gas.........   -.03    .04    .03    .40   -.24   -.44    .00   -.07    .11    .19    .04    .19   -.04   -.19    .01    .25    .05   -.13   -.05
        Other household operation...    .03   -.01    .04    .01   -.02    .09    .02   -.08   -.02    .05   -.03   -.03    .05    .08    .07    .04    .07    .09    .05
      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    .59
      Recreation....................    .07    .07    .09    .04    .15   -.03    .02    .07    .13    .05    .04    .11    .08    .13    .07    .11    .17    .01    .08
      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    .46

    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   1.37
      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   1.27
        Structures..................   -.07   -.57   -.15    .04   -.29   -.14    .19  -1.27   -.59   -.70   -.45   -.17   -.33    .32   -.03    .18   -.19    .16   -.01
        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   1.28
          Information processing
           equipment and software...   -.08   -.18    .45    .58   -.08   -.93   -.53   -.21   -.29    .04    .38   -.15    .59    .51   1.04    .61    .62    .55    .31
            Computers and peripheral
             equipment..............    .02    .09    .24    .06    .16   -.22   -.26    .19    .18    .03    .25    .08    .25    .30    .39    .25    .06    .22    .18
            Software................   -.02   -.10    .07    .20    .01   -.30   -.07   -.19   -.14   -.03    .11   -.16    .12    .07    .28    .14    .24    .13    .11
            Other...................   -.08   -.16    .14    .32   -.25   -.42   -.20   -.21   -.33    .04    .02   -.08    .23    .14    .36    .22    .33    .20    .01
          Industrial equipment......   -.14   -.08    .00   -.12    .01   -.48   -.27   -.21    .24   -.21    .02   -.05    .09   -.02    .04   -.06    .08    .03    .31
          Transportation equipment..   -.18   -.17   -.04   -.36   -.22   -.03   -.27    .26   -.39   -.38   -.09    .00   -.31    .25    .14    .14   -.20    .28    .38
          Other equipment...........   -.04   -.02    .06   -.03    .05   -.19    .05   -.19   -.10    .18    .02    .04   -.06    .03    .31    .20    .10    .20    .28
      Residential...................    .02    .22    .43    .02    .10    .25    .08   -.18    .42    .51    .13    .20    .36    .44   1.09    .50    .27    .86    .10

    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   -.91
      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   -.99

  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   -.27

    Exports.........................   -.60   -.24    .18   -.31   -.59  -1.45  -2.04  -1.11    .43    .99    .29   -.42   -.15   -.15   1.02   1.55    .70    .70    .62
      Goods.........................   -.48   -.29    .14   -.45   -.43  -1.43  -1.60   -.63   -.13    .87    .19   -.72    .25   -.06    .64   1.00    .60    .41    .62
      Services......................   -.12    .05    .04    .14   -.16   -.02   -.44   -.48    .56    .13    .10    .30   -.40   -.10    .39    .56    .10    .30    .01

    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   -.89
      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   -.69
      Services......................    .01   -.04   -.07    .04    .12   -.28    .47    .25   -.49    .14   -.06   -.36    .06    .24   -.39   -.26   -.03   -.25   -.20

  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    .23

    Federal.........................    .23    .46    .43   -.07    .46    .52    .00    .51    .49    .78    .19    .58    .04   1.40   -.23    .33    .48    .18    .32
      National defense..............    .15    .30    .38    .06    .25    .16    .09    .46    .23    .45    .14    .54   -.11   1.49   -.36    .50    .47    .09    .44
        Consumption expenditures....    .13    .25    .33    .11    .26    .06    .03    .45    .22    .29    .04    .63   -.16   1.39   -.40    .42    .29    .16    .38
        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   -.12
       Consumption expenditures.....    .08    .14    .05   -.06    .15    .26    .01    .04    .19    .23    .12    .07    .14   -.23    .23   -.18   -.01   -.01   -.04
       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   -.09
        Consumption expenditures....    .24    .21    .07    .21    .24    .24    .39    .38    .10    .16    .11    .14    .02    .04    .01    .08    .02    .00    .13
        Gross investment............    .13    .12    .02    .08    .22    .59   -.67    .59    .26   -.13    .09    .02    .00   -.09    .25   -.10   -.02    .23   -.22

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   2.60
    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   1.48
    Structures......................    .04   -.24    .29    .03    .03    .66   -.44   -.87    .09   -.32   -.23    .08    .00    .67   1.29    .52    .07   1.19   -.13
    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    .18
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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   III 03    IV 03     I 04    II 04   III 04r    2003   III 03    IV 03     I 04    II 04   III 04r    2003    II 04   III 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 11,004.0 11,116.7 11,270.9 11,472.6 11,657.5 11,810.0 10,381.3 10,472.8 10,580.7 10,697.5 10,784.7 10,889.7    306.5     87.2    105.0

Personal consumption expenditures.  7,760.9  7,822.5  7,914.9  8,060.2  8,153.8  8,278.3  7,355.6  7,401.7  7,466.8  7,543.0  7,572.4  7,666.8    232.2     29.4     94.4

  Durable goods...................    950.7    972.7    971.1    976.3    975.5  1,007.0  1,030.6  1,059.6  1,069.7  1,075.5  1,074.7  1,118.2     71.0      -.8     43.5
    Motor vehicles and parts......    440.1    452.5    444.1    438.4    432.5    458.3    452.1    465.6    463.5    456.7    449.6    478.7     23.4     -7.1     29.1
    Furniture and household
     equipment....................    328.0    333.3    338.0    345.0    348.6    353.8    393.5    405.0    414.6    425.6    433.3    445.3     32.8      7.7     12.0
    Other.........................    182.6    186.9    189.0    193.0    194.4    194.9    186.5    190.5    194.0    196.9    196.8    198.7     15.6      -.1      1.9

  Nondurable goods................  2,200.1  2,219.2  2,250.1  2,316.6  2,354.6  2,387.7  2,112.4  2,125.3  2,152.0  2,187.3  2,188.0  2,213.7     75.0       .7     25.7
    Food..........................  1,064.5  1,074.6  1,091.8  1,120.3  1,137.5  1,156.6    995.1  1,002.2  1,008.6  1,028.4  1,034.3  1,045.0     36.7      5.9     10.7
    Clothing and shoes............    307.2    311.0    314.4    325.0    322.9    325.3    330.2    334.9    338.2    351.2    346.5    351.7     13.5     -4.7      5.2
    Gasoline, fuel oil, and other
     energy goods.................    208.2    207.6    210.7    229.7    243.2    245.9    197.3    194.6    203.3    202.1    195.0    196.7      1.3     -7.1      1.7
    Other.........................    620.1    626.0    633.1    641.5    651.0    660.0    589.6    593.6    602.1    606.6    613.4    621.8     23.3      6.8      8.4

  Services........................  4,610.1  4,630.6  4,693.6  4,767.3  4,823.8  4,883.6  4,220.3  4,227.9  4,256.7  4,291.7  4,320.0  4,351.0     91.7     28.3     31.0
    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    452.1    400.2    398.7    406.0    409.3    408.4    408.4      6.1      -.9       .0
      Electricity and gas.........    167.3    166.7    171.2    175.7    174.3    176.5    147.2    144.7    150.6    151.9    148.8    147.7      2.5     -3.1     -1.1
      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    302.4    277.7    277.1    276.7    278.1    280.1    281.1     -2.2      2.0      1.0
    Medical care..................  1,301.1  1,312.1  1,334.0  1,356.8  1,379.1  1,404.8  1,184.3  1,189.3  1,198.3  1,207.9  1,221.0  1,235.9     45.0     13.1     14.9
    Recreation....................    317.2    319.0    323.4    330.8    333.0    337.5    290.3    291.2    294.1    298.3    298.5    300.6      8.8       .2      2.1
    Other.........................  1,078.1  1,079.1  1,098.8  1,120.9  1,130.9  1,139.5    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  1,949.5  1,628.8  1,659.4  1,714.1  1,764.5  1,842.9  1,855.5     68.1     78.4     12.6

  Fixed investment................  1,667.0  1,700.2  1,755.2  1,783.5  1,861.7  1,916.1  1,627.3  1,660.6  1,702.7  1,721.4  1,778.3  1,816.3     78.4     56.9     38.0
    Nonresidential................  1,094.7  1,113.3  1,146.3  1,158.8  1,198.5  1,238.7  1,110.8  1,131.1  1,161.0  1,173.0  1,207.9  1,245.3     35.2     34.9     37.4
      Structures..................    261.6    262.3    268.2    266.0    275.5    281.8    237.4    237.9    242.4    237.7    241.7    241.5    -14.2      4.0      -.2
      Equipment and software......    833.1    851.1    878.1    892.8    923.1    956.9    879.2    899.7    925.6    943.7    975.5  1,015.0     52.7     31.8     39.5
        Information processing
         equipment and software...    431.2    442.8    454.7    468.5    480.9    486.3    492.4    507.1    526.6    547.0    565.4    575.9     52.8     18.4     10.5
          Computers and peripheral
           equipment..............     95.3     99.7    104.5    104.4    108.8    111.2    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    165.8    169.1    170.5    176.8    180.0    182.9    171.2    174.6    178.5    185.6    189.5    192.9      7.6      3.9      3.4
          Other...................    170.0    174.0    179.7    187.4    192.2    192.2    179.4    183.9    190.4    200.2    206.2    206.7     15.1      6.0       .5
        Industrial equipment......    139.8    140.8    139.5    143.1    145.0    155.0    137.6    138.4    136.8    139.0    139.7    148.4       .2       .7      8.7
        Transportation equipment..    126.6    128.8    140.0    134.5    143.2    152.8    121.6    124.3    127.8    122.7    130.0    140.3     -4.0      7.3     10.3
        Other equipment...........    135.5    138.7    144.0    146.6    153.9    162.8    131.2    134.0    139.3    142.1    147.5    155.3      6.7      5.4      7.8
    Residential...................    572.3    586.9    609.0    624.6    663.2    677.4    511.2    523.8    535.9    542.5    563.6    566.1     41.2     21.1      2.5

  Change in private inventories...     -1.2     -3.7      3.5     36.2     59.0     33.3      -.8     -3.5      8.6     40.0     61.1     35.9    -12.5     21.1    -25.2
    Farm..........................       .3      -.9      -.9      1.0     -2.4       .0       .3      -.7      3.5      5.1      3.0      3.9      1.9     -2.1       .9
    Nonfarm.......................     -1.5     -2.8      4.5     35.2     61.4     33.3     -1.1     -2.7      4.6     34.5     58.8     31.8    -14.6     24.3    -27.0

Net exports of goods and services.   -498.1   -488.8   -502.8   -546.8   -591.3   -616.7   -518.5   -508.7   -528.3   -550.1   -580.3   -588.0    -46.4    -30.2     -7.7

  Exports.........................  1,046.2  1,047.7  1,099.2  1,134.3  1,167.6  1,190.1  1,031.8  1,033.8  1,076.2  1,095.4  1,114.8  1,132.1     19.5     19.4     17.3
    Goods.........................    726.4    725.9    761.3    790.3    812.2    832.6    721.7    723.1    750.6    767.2    778.4    795.6     15.3     11.2     17.2
    Services......................    319.8    321.7    337.9    344.1    355.4    357.6    309.9    310.5    325.4    328.1    336.2    336.3      4.2      8.1       .1

  Imports.........................  1,544.3  1,536.4  1,602.0  1,681.2  1,758.9  1,806.8  1,550.3  1,542.5  1,604.5  1,645.5  1,695.1  1,720.1     65.9     49.6     25.0
    Goods.........................  1,282.0  1,270.3  1,326.4  1,399.2  1,470.1  1,508.6  1,307.3  1,297.3  1,353.2  1,394.1  1,437.4  1,457.0     58.8     43.3     19.6
    Services......................    262.3    266.1    275.6    282.0    288.8    298.2    243.3    245.2    251.7    252.4    258.9    264.1      7.4      6.5      5.2

Government consumption expenditures
 and gross investment.............  2,075.5  2,086.4  2,100.0  2,139.5  2,174.3  2,199.0  1,909.4  1,916.0  1,923.7  1,935.8  1,946.5  1,952.4     51.5     10.7      5.9

  Federal.........................    752.2    756.7    767.5    793.3    804.4    816.9    689.6    693.1    701.2    713.3    718.1    726.4     43.0      4.8      8.3
    National defense..............    496.4    498.1    513.6    534.1    541.2    556.6    451.8    453.1    465.7    477.6    479.9    491.2     37.2      2.3     11.3
      Consumption expenditures....    436.1    437.1    450.2    465.2    473.6    487.1    390.3    391.1    401.4    408.5    412.5    422.2     32.1      4.0      9.7
      Gross investment............     60.4     61.0     63.4     69.0     67.6     69.5     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    260.4    237.6    239.9    235.2    235.4    237.9    234.7      5.6      2.5     -3.2
      Consumption expenditures....    222.5    225.9    221.1    225.9    226.6    226.0    204.0    206.7    202.0    201.8    201.5    200.4      5.0      -.3     -1.1
      Gross investment............     33.2     32.8     32.8     33.2     36.5     34.4     33.5     33.1     33.2     33.6     36.8     34.5       .6      3.2     -2.3

  State and local.................  1,323.3  1,329.7  1,332.6  1,346.3  1,369.9  1,382.1  1,219.8  1,222.9  1,222.5  1,222.4  1,228.3  1,225.9      8.4      5.9     -2.4
      Consumption expenditures....  1,058.5  1,061.0  1,066.3  1,079.8  1,091.8  1,104.8    969.0    968.8    970.9    971.5    971.5    974.8      6.8       .0      3.3
      Gross investment............    264.9    268.7    266.2    266.4    278.0    277.2    250.9    254.3    251.6    251.0    257.1    251.2      1.7      6.1     -5.9

Residual..........................    .....    .....    .....    .....    .....    .....    -14.9    -23.5    -26.7    -31.3    -35.6    -44.4    .....    .....    .....

Addenda:
  Final sales of domestic product. 11,005.3 11,120.4 11,267.4 11,436.4 11,598.5 11,776.7 10,379.9 10,473.9 10,569.6 10,655.8 10,722.3 10,852.0    316.7     66.5    129.7
  Gross domestic purchases........ 11,502.2 11,605.5 11,773.7 12,019.4 12,248.8 12,426.7 10,895.7 10,978.3 11,104.3 11,241.9 11,358.1 11,470.6    351.1    116.2    112.5
  Final sales to domestic
   purchasers..................... 11,503.4 11,609.2 11,770.1 11,983.2 12,189.8 12,393.4 10,894.2 10,979.4 11,093.2 11,200.1 11,295.5 11,432.7    361.2     95.4    137.2

  Gross domestic product.......... 11,004.0 11,116.7 11,270.9 11,472.6 11,657.5 11,810.0 10,381.3 10,472.8 10,580.7 10,697.5 10,784.7 10,889.7    306.5     87.2    105.0
  Plus: Income receipts from
   the rest of the world..........    329.0    329.8    371.8    373.8    388.0    404.8    311.9    312.1    350.7    349.6    359.8    373.7     20.2     10.2     13.9
  Less: Income payments to
   the rest of the world..........    273.9    278.2    284.6    300.3    351.9    361.2    259.2    263.2    268.0    280.3    325.8    333.3     -5.7     45.5      7.5
  Equals: Gross national product.. 11,059.2 11,168.3 11,358.1 11,546.1 11,693.6 11,853.7 10,433.9 10,521.7 10,663.3 10,766.7 10,818.7 10,930.0    332.2     52.0    111.3

  Net domestic product............  9,650.1  9,756.2  9,896.7 10,117.6 10,282.3 10,309.5  9,045.8  9,132.0  9,228.4  9,344.1  9,424.1  9,425.2    267.9     80.0      1.1
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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  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 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       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   -1.5
    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    7.0
  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    1.5
    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    1.2
    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    2.3
  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    5.0
    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    5.0
    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    4.9

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    3.4
  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    1.1
  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    4.4

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    1.3

  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    1.8
    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    1.4
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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     III 03      IV 03       I 04      II 04     III 04r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    100.751    102.626    105.749    106.681    107.780    108.969    109.858    110.927

Personal consumption expenditures..........    102.537    105.698    109.143    109.828    110.794    111.925    112.360    113.761
  Durable goods............................    104.327    111.150    119.378    122.733    123.902    124.572    124.482    129.526
  Nondurable goods.........................    102.027    104.630    108.481    109.145    110.517    112.331    112.367    113.684
  Services.................................    102.403    105.085    107.418    107.613    108.346    109.237    109.955    110.746

Gross private domestic investment..........     92.103     89.928     93.852     95.616     98.771    101.672    106.191    106.917
  Fixed investment.........................     97.047     92.253     96.924     98.904    101.412    102.529    105.913    108.177
    Nonresidential.........................     95.817     87.302     90.157     91.802     94.235     95.204     98.041    101.070
      Structures...........................     97.737     80.346     75.810     75.955     77.406     75.886     77.171     77.108
      Equipment and software...............     95.136     89.947     95.679     97.917    100.735    102.699    106.157    110.455
    Residential............................    100.357    105.178    114.392    117.201    119.916    121.400    126.122    126.666
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     94.565     92.343     94.116     94.300     98.170     99.924    101.690    103.264

Imports of goods and services..............     97.291    100.585    105.048    104.522    108.725    111.504    114.862    116.554

Government consumption expenditures and
 gross investment..........................    103.412    107.918    110.906    111.290    111.738    112.443    113.062    113.407
  Federal..................................    103.908    111.725    119.140    119.751    121.154    123.249    124.068    125.505
  State and local..........................    103.162    105.999    106.739    107.006    106.968    106.965    107.482    107.273

Addenda:
  Final sales of domestic product..........    101.644    103.102    106.346    107.309    108.290    109.173    109.854    111.183
  Gross domestic purchases.................    100.918    103.414    106.858    107.668    108.904    110.253    111.393    112.496
  Final sales to domestic purchasers.......    101.781    103.876    107.438    108.279    109.401    110.455    111.396    112.749
  Gross national product...................    100.788    102.494    105.865    106.755    108.192    109.241    109.769    110.898
-----------------------------------------------------------------------------------------------------------------------------------
  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     III 03      IV 03       I 04      II 04     III 04r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    102.402    104.097    106.003    106.158    106.586    107.314    108.169    108.519

Personal consumption expenditures
 (PCE).....................................    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     90.008
  Nondurable goods.........................    101.531    102.097    104.154    104.423    104.564    105.914    107.616    107.868
  Services.................................    103.257    106.083    109.237    109.529    110.266    111.085    111.667    112.243

Gross private domestic investment..........    101.013    101.221    102.304    102.276    102.968    103.514    104.644    105.435
  Fixed investment.........................    101.023    101.232    102.435    102.401    103.101    103.618    104.709    105.513
    Nonresidential.........................     99.683     98.909     98.546     98.431     98.729     98.793     99.220     99.473
      Structures...........................    105.403    107.908    110.176    110.255    110.633    111.926    113.984    116.688
      Equipment and software...............     97.708     95.868     94.754     94.588     94.862     94.611     94.626     94.281
    Residential............................    104.633    107.246    111.951    112.097    113.675    115.179    117.710    119.722
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............     99.624     99.275    101.395    101.355    102.146    103.565    104.746    105.144

Imports of goods and services..............     97.497     96.326     99.615     99.606     99.837    102.163    103.760    105.041

Government consumption expenditures and
 gross investment..........................    102.544    105.313    108.702    108.898    109.167    110.522    111.703    112.628
  Federal..................................    101.907    105.288    109.081    109.181    109.447    111.203    112.020    112.459
  State and local..........................    102.868    105.317    108.485    108.736    109.007    110.131    111.524    112.735

Addenda:
  PCE excluding food and energy............    101.904    103.707    105.072    105.174    105.527    106.081    106.523    106.704
  Market-based PCE\1\......................    101.941    103.113    105.040    105.294    105.496    106.334    107.292    107.666
  Market-based PCE excluding food
   and energy\1\...........................    101.668    103.186    104.388    104.572    104.790    105.261    105.798    106.051
  Final sales of domestic product..........    102.406    104.100    106.025    106.179    106.608    107.332    108.178    108.529
  Gross domestic purchases.................    101.994    103.489    105.571    105.721    106.086    106.980    107.913    108.398
  Final sales to domestic purchasers.......    101.998    103.491    105.592    105.741    106.107    106.997    107.923    108.408
  Gross national product...................    102.399    104.087    105.997    106.156    106.579    107.308    108.164    108.519

  Implicit price deflators:
    Gross domestic product.................    102.399    104.092    105.998    106.148    106.523    107.246    108.093    108.452
    Final sales of domestic product........    102.407    104.100    106.025    106.173    106.601    107.325    108.172    108.521
    Gross domestic purchases...............    101.992    103.484    105.566    105.713    106.028    106.916    107.842    108.335
    Final sales to domestic purchasers.....    101.998    103.491    105.592    105.735    106.102    106.992    107.917    108.403
    Gross national product.................    102.396    104.082    105.992    106.146    106.516    107.240    108.087    108.451
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.
  1. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.  Percentage changes for these series are
included in the addenda to table 8 and appendix table A.
  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 04r III 04r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       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     4.0

Personal consumption expenditures
 (PCE).................................     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     3.6
  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     5.5
  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     4.2
  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    11.8
  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     9.4
    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    10.1
      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     1.5
      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    12.8
    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     8.1
  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     9.5
    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    10.0
    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     8.3
  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    11.5
    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    12.3
    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     7.7

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     8.4
    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    -2.1
  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      .2

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     3.6
  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     3.9
  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     3.7     2.1

  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
    PCE................................     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
    PCE excluding food and energy......     1.5     1.6     1.8     2.0     2.2     1.8     1.8     1.9     1.5     1.6     1.4     1.1     1.2     1.4     1.5     1.5
    Market-based PCE\1\................     2.4     2.2     2.3     1.9     1.3      .8      .9     1.2     1.7     2.3     1.8     1.8     1.6     1.7     2.4     2.3
    Market-based PCE excluding food
     and energy\1\.....................     1.5     1.5     1.7     1.8     1.8     1.5     1.6     1.5     1.4     1.4     1.2     1.1     1.0     1.3     1.5     1.4
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the second
quarter of 2004.
  1. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.

                     Table 9.--Relation of Gross Domestic Product, Gross National Product, and National Income
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2001       2002       2003     III 03      IV 03       I 04      II 04r    III 04r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   10,128.0   10,487.0   11,004.0   11,116.7   11,270.9   11,472.6   11,657.5   11,810.0

Plus: Income receipts from the rest of the
 world.....................................      322.4      301.8      329.0      329.8      371.8      373.8      388.0      404.8
Less: Income payments to the rest of the
 world.....................................      278.8      274.7      273.9      278.2      284.6      300.3      351.9      361.2

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   11,853.7

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    1,500.5
Less: Statistical discrepancy..............      -89.6      -15.3       25.6       36.6       12.8       63.0       56.4       59.6

Equals: National income....................    8,979.8    9,225.4    9,679.6    9,771.1    9,971.1   10,128.1   10,262.0   10,293.5
  Compensation of employees................    5,942.1    6,069.5    6,289.0    6,324.7    6,406.7    6,489.4    6,578.5    6,657.6
    Wage and salary accruals...............    4,942.8    4,976.3    5,103.6    5,128.6    5,188.9    5,240.7    5,311.4    5,375.4
    Supplements to wages and salaries......      999.3    1,093.2    1,185.5    1,196.1    1,217.8    1,248.8    1,267.2    1,282.1
  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      153.6
  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    1,146.3
  Net interest and miscellaneous payments..      566.3      532.9      543.0      542.8      545.3      554.5      548.5      545.6
  Taxes on production and imports less
   subsidies...............................      673.3      724.4      751.3      757.4      769.4      782.9      796.3      804.4
  Business current transfer payments.......       92.8       80.9       77.7       78.9       80.1       82.7       83.5       76.4
  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   11,601.1   11,750.4
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the second
quarter of 2004.

                                          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 04r    III 04r
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    8,724.1    8,878.9    9,161.8    9,209.3    9,330.0    9,445.0    9,592.7    9,671.7

  Compensation of employees, received......    5,942.1    6,069.5    6,289.0    6,324.7    6,406.7    6,487.9    6,580.0    6,657.6
    Wage and salary disbursements..........    4,942.8    4,976.3    5,103.6    5,128.6    5,188.9    5,239.2    5,312.8    5,375.5
    Supplements to wages and salaries......      999.3    1,093.2    1,185.5    1,196.1    1,217.8    1,248.8    1,267.2    1,282.1
  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       14.1
    Nonfarm................................      752.2      759.9      812.3      827.2      840.0      854.2      882.5      889.1
  Rental income of persons with capital
   consumption adjustment..................      167.4      170.9      153.8      148.8      167.1      172.8      172.6      153.6
  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    1,414.0

  Less: Contributions for government
   social insurance........................      731.1      748.3      773.2      776.7      785.0      803.9      814.0      823.1

Less: Personal current taxes...............    1,237.3    1,051.2    1,001.9      941.7    1,009.4    1,006.6    1,030.6    1,044.3

Equals: Disposable personal income.........    7,486.8    7,827.7    8,159.9    8,267.6    8,320.5    8,438.4    8,562.1    8,627.4

Less: Personal outlays.....................    7,354.5    7,668.5    8,049.3    8,107.8    8,209.4    8,351.6    8,448.7    8,582.4

Equals: Personal saving....................      132.3      159.2      110.6      159.8      111.1       86.8      113.4       45.0

  Personal saving as a percentage of
   disposable personal income..............        1.8        2.0        1.4        1.9        1.3        1.0        1.3         .5

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    7,951.5    7,990.1
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the second
quarter of 2004.
  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  III 03   IV 03    I 04   II 04  III 04    2002    2003   IV 03    I 04   II 04  III 04  III 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------
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 1,146.3    14.0    16.8     6.8     3.2      .7    -2.4     8.4

Less: Taxes on corporate income......   204.1   183.8   234.9   238.7   252.3   256.5   271.2   261.4    -9.9    27.8     5.7     1.6     5.7    -3.6     9.5

Equals: Profits after tax with
 inventory valuation and capital
 consumption adjustments.............   563.2   690.7   786.2   818.4   876.8   909.1   902.7   884.9    22.6    13.8     7.1     3.7     -.7    -2.0     8.1
  Net dividends......................   370.9   390.0   395.3   394.1   396.4   403.4   413.2   424.0     5.2     1.4      .6     1.8     2.4     2.6     7.6
  Undistributed profits with
   inventory valuation and capital
   consumption adjustments...........   192.3   300.7   390.9   424.2   480.4   505.7   489.5   460.9    56.4    30.0    13.2     5.3    -3.2    -5.8     8.6

Cash flow:
  Net cash flow with inventory
   valuation and capital consumption
   adjustments.......................   944.8 1,058.5 1,173.4 1,210.0 1,273.2 1,279.1 1,273.4 1,293.8    12.0    10.9     5.2      .5     -.4     1.6     6.9
    Undistributed profits with
     inventory valuation and capital
     consumption adjustments.........   192.3   300.7   390.9   424.2   480.4   505.7   489.5   460.9    56.4    30.0    13.2     5.3    -3.2    -5.8     8.6
    Consumption of fixed capital.....   752.5   757.8   782.5   785.8   792.9   773.4   783.9   832.9      .7     3.3      .9    -2.5     1.4     6.2     6.0

  Less: Inventory valuation
   adjustment........................    11.3    -1.2   -14.1    -3.8   -24.3   -37.0   -47.8   -39.3   .....   .....   .....   .....   .....   .....   .....

  Equals: Net cash flow..............   933.5 1,059.8 1,187.5 1,213.8 1,297.6 1,316.1 1,321.2 1,333.1    13.5    12.1     6.9     1.4      .4      .9     9.8

Addenda:
  Profits before tax (without
   inventory valuation and capital
   consumption adjustments)..........   707.9   758.0   874.5   881.0   966.2   962.4   988.3   964.3     7.1    15.4     9.7     -.4     2.7    -2.4     9.5
  Profits after tax (without
   inventory valuation and capital
   consumption adjustments)..........   503.8   574.2   639.6   642.3   713.9   705.9   717.1   703.0    14.0    11.4    11.2    -1.1     1.6    -2.0     9.5
  Inventory valuation adjustment.....    11.3    -1.2   -14.1    -3.8   -24.3   -37.0   -47.8   -39.3   .....   .....   .....   .....   .....   .....   .....
  Capital consumption adjustment.....    48.1   117.8   160.8   179.9   187.2   240.2   233.3   221.2   144.9    36.5     4.1    28.3    -2.9    -5.2    23.0
-------------------------------------------------------------------------------------------------------------------------------------------------------------

                                      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  III 03   IV 03    I 04   II 04  III 04    2002    2003   IV 03    I 04   II 04  III 04
-------------------------------------------------------------------------------------------------------------------------------------------------------------
    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 1,146.3   107.3   146.5    72.0    36.5     8.3   -27.6

Domestic industries..........................   597.6   716.8   844.2   883.7   913.3   960.3   988.6   952.1   119.2   127.4    29.6    47.0    28.3   -36.5
  Financial..................................   240.4   298.4   327.8   336.4   335.9   355.7   347.8   301.1    58.0    29.4     -.5    19.8    -7.9   -46.7
  Nonfinancial...............................   357.2   418.4   516.4   547.3   577.3   604.6   640.8   651.0    61.2    98.0    30.0    27.3    36.2    10.2

Rest of the world............................   169.7   157.8   176.9   173.4   215.8   205.3   185.3   194.1   -11.9    19.1    42.4   -10.5   -20.0     8.8
  Receipts from the rest of the world........   182.6   206.0   250.7   253.1   293.4   299.0   305.6   311.9    23.4    44.7    40.3     5.6     6.6     6.3
  Less: Payments to the rest of the world....    12.9    48.2    73.8    79.7    77.5    93.7   120.3   117.8    35.3    25.6    -2.2    16.2    26.6    -2.5

    Corporate profits with inventory
     valuation adjustment....................   719.2   756.8   860.4   877.2   941.9   925.4   940.6   925.0    37.6   103.6    64.7   -16.5    15.2   -15.6

Domestic industries..........................   549.5   599.0   683.4   703.8   726.1   720.0   755.2   730.9    49.5    84.4    22.3    -6.1    35.2   -24.3
  Financial..................................   227.6   276.2   299.8   306.1   305.3   313.7   306.4   259.9    48.6    23.6     -.8     8.4    -7.3   -46.5
    Federal Reserve banks....................    28.3    22.9    19.2    18.5    17.6    18.2    18.1    19.0    -5.4    -3.7     -.9      .6     -.1      .9
    Other financial..........................   199.3   253.3   280.6   287.6   287.8   295.5   288.3   240.9    54.0    27.3      .2     7.7    -7.2   -47.4

  Nonfinancial...............................   322.0   322.8   383.6   397.6   420.7   406.4   448.8   471.0      .8    60.8    23.1   -14.3    42.4    22.2
    Utilities................................    24.7    11.4    18.8    18.6    24.3    23.2    21.5   .....   -13.3     7.4     5.7    -1.1    -1.7   .....
    Manufacturing............................    52.6    50.7    67.3    66.8    93.4    81.5    94.8   .....    -1.9    16.6    26.6   -11.9    13.3   .....
      Durable goods..........................   -25.4    -8.3    -3.5    -7.5     9.3     2.8    14.9   .....    17.1     4.8    16.8    -6.5    12.1   .....
        Fabricated metal products............     9.9     9.3    10.1    10.1    13.2    11.8    12.1   .....     -.6      .8     3.1    -1.4      .3   .....
        Machinery............................     2.7     1.6     -.5     1.1     1.1     2.2     3.6   .....    -1.1    -2.1      .0     1.1     1.4   .....
        Computer and electronic products.....   -48.5   -32.9   -15.4   -15.2   -14.0   -17.2   -15.9   .....    15.6    17.5     1.2    -3.2     1.3   .....
        Electrical equipment, appliances,
         and components......................     1.9     -.2    -3.2    -4.3    -4.4    -8.1    -1.6   .....    -2.1    -3.0     -.1    -3.7     6.5   .....
        Motor vehicles, bodies and trailers,
         and parts...........................    -9.2    -6.0    -6.2   -11.4    -5.0     -.5    -1.2   .....     3.2     -.2     6.4     4.5     -.7   .....
        Other durable goods..................    17.8    19.8    11.8    12.2    18.4    14.6    18.0   .....     2.0    -8.0     6.2    -3.8     3.4   .....

      Nondurable goods.......................    78.0    58.9    70.7    74.2    84.1    78.6    79.9   .....   -19.1    11.8     9.9    -5.5     1.3   .....
        Food and beverage and tobacco
         products............................    28.0    24.1    27.7    28.6    34.2    31.1    27.9   .....    -3.9     3.6     5.6    -3.1    -3.2   .....
        Petroleum and coal products..........    29.6     4.0    14.8    12.6    18.7    24.5    27.3   .....   -25.6    10.8     6.1     5.8     2.8   .....
        Chemical products....................    12.6    17.1    21.2    24.5    21.3    14.1    13.7   .....     4.5     4.1    -3.2    -7.2     -.4   .....
        Other nondurable goods...............     7.8    13.6     7.1     8.5     9.8     8.9    11.0   .....     5.8    -6.5     1.3     -.9     2.1   .....

    Wholesale trade..........................    52.1    51.0    47.9    53.1    50.1    46.0    52.2   .....    -1.1    -3.1    -3.0    -4.1     6.2   .....
    Retail trade.............................    71.0    78.1    77.7    78.9    74.7    80.0    73.1   .....     7.1     -.4    -4.2     5.3    -6.9   .....
    Transportation and warehousing...........     1.3    -1.3    10.5    11.9    12.4    11.7    15.5   .....    -2.6    11.8      .5     -.7     3.8   .....
    Information..............................   -25.6   -11.2     -.7     6.7    -1.0    -6.6    16.5   .....    14.4    10.5    -7.7    -5.6    23.1   .....
    Other nonfinancial.......................   145.9   144.2   162.1   161.7   166.8   170.7   175.1   .....    -1.7    17.9     5.1     3.9     4.4   .....

Rest of the world............................   169.7   157.8   176.9   173.4   215.8   205.3   185.3   194.1   -11.9    19.1    42.4   -10.5   -20.0     8.8
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  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     III 03      IV 03       I 04      II 04r    III 04
-----------------------------------------------------------------------------------------------------------------------------------
                                                                             Billions of dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business....................    5,293.5    5,377.7    5,606.8    5,669.0    5,767.5    5,839.4    5,955.5    6,041.4

Consumption of fixed capital...............      646.8      655.7      676.4      679.0      684.3      671.8      680.9      728.3

Net value added............................    4,646.7    4,722.0    4,930.5    4,990.0    5,083.3    5,167.6    5,274.7    5,313.1

  Compensation of employees................    3,595.9    3,601.3    3,696.2    3,717.9    3,771.0    3,818.1    3,878.6    3,929.3
    Wage and salary accruals...............    3,016.5    2,971.0    3,006.9    3,022.4    3,062.8    3,089.9    3,138.5    3,179.7
    Supplements to wages and salaries......      579.3      630.3      689.3      695.4      708.3      728.1      740.1      749.6
  Taxes on production and imports less
   subsidies...............................      439.1      465.1      483.4      489.0      495.0      501.1      508.4      513.3
  Net operating surplus....................      611.8      655.5      750.8      783.2      817.2      848.5      887.6      870.4
    Net interest and miscellaneous
     payments..............................      204.0      181.7      170.8      170.2      172.1      174.8      177.2      176.9
    Business current transfer payments.....       50.6       55.5       63.5       65.7       67.8       69.0       69.6       42.5
    Corporate profits with inventory
     valuation and capital consumption
     adjustments...........................      357.2      418.4      516.4      547.3      577.3      604.6      640.8      651.0
      Taxes on corporate income............      111.7       89.0      130.0      132.2      146.8      147.7      164.9      168.7
      Profits after tax with inventory
       valuation and capital consumption
       adjustments.........................      245.5      329.4      386.4      415.1      430.5      456.9      475.9      482.3
        Net dividends......................      245.4      254.9      275.4      265.6      273.6      270.6      265.5      277.6
        Undistributed profits with
         inventory valuation and capital
         consumption adjustments...........         .1       74.5      111.0      149.5      156.9      186.2      210.5      204.7

Addenda:
  Profits before tax (without inventory
   valuation and capital consumption
   adjustments)............................      310.6      324.1      397.7      401.4      445.0      443.4      496.5      510.4
  Profits after tax (without inventory
   valuation and capital consumption
   adjustments)............................      198.9      235.1      267.7      269.2      298.2      295.6      331.7      341.6
  Inventory valuation adjustment...........       11.3       -1.2      -14.1       -3.8      -24.3      -37.0      -47.8      -39.3
  Capital consumption adjustment...........       35.2       95.6      132.9      149.7      156.6      198.3      192.0      180.0
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business\1\.................    5,229.7    5,306.6    5,520.2    5,579.6    5,670.7    5,711.5    5,770.9    5,850.1

Consumption of fixed capital\2\............      615.8      628.0      647.2      649.5      655.1      654.1      657.2      697.2
Net value added\3\.........................    4,613.8    4,678.6    4,873.0    4,930.1    5,015.6    5,057.4    5,113.6    5,152.9
                                           ----------------------------------------------------------------------------------------
                                                                                   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      1.016      1.016      1.017      1.022      1.032      1.033

  Compensation of employees (unit labor
   cost)...................................       .688       .679       .670       .666       .665       .668       .672       .672

  Unit nonlabor cost.......................       .257       .256       .253       .252       .250       .249       .249       .250
    Consumption of fixed capital...........       .124       .124       .123       .122       .121       .118       .118       .125
    Taxes on production and imports less
     subsidies plus business current
     transfer payments.....................       .094       .098       .099       .099       .099       .100       .100       .095
    Net interest and miscellaneous payments       .039       .034       .031       .031       .030       .031       .031       .030

  Corporate profits with inventory valuation
   and capital consumption adjustments (unit
   profits from current production)........       .068       .079       .094       .098       .102       .106       .111       .111
    Taxes on corporate income..............       .021       .017       .024       .024       .026       .026       .029       .029
    Profits after tax with inventory
     valuation and capital consumption
     adjustments...........................       .047       .062       .070       .074       .076       .080       .082       .082
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the second
quarter of 2004.
  1. Effective with the estimates scheduled for release on December 22,
2004, chained-dollar gross value added of nonfinancial corporate
business for 1929 to 2004 will be revised.  The current-dollar value
added will be deflated by a revised chain-type price index calculated
using the gross value added chain-type price index for nonfinancial
industries from the comprehensive revision of the GDP-by-industry
accounts.
  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  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 04r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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    3.9

  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    8.1
  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    2.6
  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   -1.3

  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   10.1
  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    3.7

  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   20.9
  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    3.8

  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   36.6

  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    4.2

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    1.7
  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    1.6
  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
   (PCE)............................    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
  Market-based PCE\4\...............    1.9    1.1    1.9    1.9    2.8    2.1     .8    -.5     .6    2.9    1.8    1.5    3.0     .6    2.0     .8    3.2    3.7    1.4
  Market-based PCE excluding food
   and energy\4\....................    1.7    1.5    1.2    1.6    2.1    1.3    1.9    1.6    1.0    1.8    1.7    1.1     .9    1.1    1.3     .8    1.8    2.1    1.0
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  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.
  4. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.
  See "Explanatory Note" at the end of the tables.



     Explanatory Note: NIPA Measures of Quantities and Prices


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

     Annual changes in quantities and prices are calculated using a Fisher formula that incorporates
weights from two adjacent years.  (Quarterly changes in quantities and prices are calculated using a
Fisher formula that incorporates weights from two adjacent quarters; quarterly indexes are adjusted for
consistency to the annual indexes before percent changes are calculated.)  For example, the 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.