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News Release: Gross Domestic Product and Corporate Profits

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EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, THURSDAY, AUGUST 30, 2007


Virginia H. Mannering:  (202)   606-5304   (GDP)                                          BEA 07-38
Andrew Hodge:		(202)	606-5564   (Profits) 
Recorded message:	(202)	606-5306



                 GROSS DOMESTIC PRODUCT:  SECOND QUARTER 2007 (PRELIMINARY)
                    CORPORATE PROFITS:  SECOND QUARTER 2007 (PRELIMINARY)


	Real gross domestic product -- the output of goods and services produced by labor and property 
located in the United States -- increased at an annual rate of 4.0 percent in the second quarter of 2007, 
according to preliminary estimates released by the Bureau of Economic Analysis.  In the first quarter, 
real GDP increased 0.6 percent. 

 	The GDP estimates released today are based on more complete source data than were available for 
the advance estimates issued last month.  In the advance estimates, the increase in real GDP was 3.4 
percent (see "Revisions" on page 3).

	The increase in real GDP in the second quarter primarily reflected positive contributions from 
personal consumption expenditures (PCE) for services, exports, nonresidential structures, federal 
government spending, state and local government spending, and equipment and software that were 
partly offset by a negative contribution from residential fixed investment.  Imports, which are a 
subtraction in the calculation of GDP, decreased.
	
	The acceleration in real GDP growth in the second quarter primarily reflected a downturn in 
imports, upturns in federal government spending and in private inventory investment, accelerations in 
exports and in nonresidential structures, and a smaller decrease in residential fixed investment that were 
partly offset by a notable deceleration in PCE.

	Final sales of computers contributed 0.21 percentage point to the second-quarter growth in real 
GDP after subtracting 0.01 percentage point from the first-quarter growth.  Motor vehicle output 
contributed 0.02 percentage point to the second-quarter growth in real GDP after contributing 0.18 
percentage point to the first-quarter growth.  



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

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



	The price index for gross domestic purchases, which measures prices paid by U.S. residents, 
increased 3.8 percent in the second quarter, 0.1 percentage point less than in the advance estimate; this 
index also increased 3.8 percent in the first quarter.  Excluding food and energy prices, the price index 
for gross domestic purchases increased 1.6 percent in the second quarter, compared with an increase of 
3.1 percent in the first.

	Real personal consumption expenditures increased 1.4 percent in the second quarter, compared 
with an increase of 3.7 percent in the first.  Real nonresidential fixed investment increased 11.1 percent, 
compared with an increase of 2.1 percent.  Nonresidential structures increased 27.7 percent, compared 
with an increase of 6.4 percent.  Equipment and software increased 4.3 percent, compared with an 
increase of 0.3 percent.  Real residential fixed investment decreased 11.6 percent, compared with a 
decrease of 16.3 percent.

	Real exports of goods and services increased 7.6 percent in the second quarter, compared with an 
increase of 1.1 percent in the first.  Real imports of goods and services decreased 3.2 percent, in contrast 
to an increase of 3.9 percent.

	Real federal government consumption expenditures and gross investment increased 5.9 percent in 
the second quarter, in contrast to a decrease of 6.3 percent in the first.  National defense increased 8.6 
percent, in contrast to a decrease of 10.8 percent.  Nondefense increased 0.5 percent, compared with an 
increase of 3.8 percent.  Real state and local government consumption expenditures and gross 
investment increased 3.0 percent, the same increase as in the first.

	The real change in private inventories added 0.21 percentage point to the second-quarter change in 
real GDP, after subtracting 0.65 percentage point from the first-quarter change.  Private businesses 
increased inventories $5.4 billion in the second quarter, following increases of $0.1 billion in the first 
quarter and $17.4 billion in the fourth.

	Real final sales of domestic product -- GDP less change in private inventories -- increased 3.7 
percent in the second quarter, compared with an increase of 1.3 percent in the first.


Gross domestic purchases

	Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever 
produced -- increased 2.4 percent in the second quarter, compared with an increase of 1.1 percent in the 
first. 


Gross national product

	Real gross national product -- the goods and services produced by the labor and property supplied 
by U.S. residents -- increased 4.0 percent in the second quarter, compared with an increase of 0.7 
percent in the first.  GNP includes, and GDP excludes, net receipts of income from the rest of the world, 
which increased $0.6 billion in the second quarter after increasing $1.8 billion in the first; in the second 
quarter, receipts increased $34.9 billion, and payments increased $34.3 billion.


Current-dollar GDP

	Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 
6.7 percent, or $222.8 billion, in the second quarter to a level of $13,774.7 billion.  In the first quarter, 
current-dollar GDP increased 4.9 percent, or $159.6 billion.


Revisions

	The preliminary estimate of the second-quarter increase in real GDP is 0.6 percentage point, or 
$15.9 billion, more than the advance estimate issued last month.  The upward revision to the percentage 
change in real GDP primarily reflected upward revisions to nonresidential structures, to equipment and 
software investment, to exports, and a downward revision to imports that were partly offset by a 
downward revision to residential fixed investment.


                                               Advance           Preliminary
                                         (Percent change from preceding quarter)

Real GDP...............................          3.4                  4.0
Current-dollar GDP.....................          6.2                  6.7
Gross domestic purchases price index...          3.9                  3.8



                                Corporate Profits

	Profits from current production (corporate profits with inventory valuation and capital 
consumption adjustments) increased $98.3 billion in the second quarter, compared with an increase of 
$16.5 billion in the first quarter.  Current-production cash flow (net cash flow with inventory valuation 
and capital consumption adjustments) -- the internal funds available to corporations for investment -- 
increased $40.6 billion in the second quarter, compared with an increase of $0.2 billion in the first.


	 Taxes on corporate income increased $39.4 billion in the second quarter, compared with an 
increase of $0.1 billion in the first.  Profits after tax with inventory valuation and capital consumption 
adjustments increased $58.9 billion in the second quarter, compared with an increase of $16.4 billion in 
the first.  Dividends increased $24.7 billion, compared with an increase of $23.0 billion; current-
production undistributed profits increased $34.2 billion, in contrast to a decrease of $6.6 billion.

	Domestic profits of financial corporations increased $56.7 billion in the second quarter, in contrast 
to a decrease of $26.9 billion in the first.  Domestic profits of nonfinancial corporations increased $25.3 
billion in the second quarter, compared with an increase of $23.2 billion in the first.  In the second 
quarter, real gross corporate value added increased, and profits per unit of real value added increased.  
The increase in profits per unit reflected an increase in unit prices that was partly offset by an increase in 
unit labor costs; unit nonlabor costs decreased slightly.

	The rest-of-the-world component of profits increased $16.2 billion in the second quarter, 
compared with an increase of $20.1 billion in the first.  This measure is calculated as (1) receipts by U.S. 
residents of earnings from their foreign affiliates plus dividends received by U.S. residents from 
unaffiliated foreign corporations minus (2) payments by U.S. affiliates of earnings to their foreign 
parents plus dividends paid by U.S. corporations to unaffiliated foreign residents.  The second-quarter 
increase was accounted for by a larger increase in receipts than in payments.

	Profits before tax increased $120.0 billion in the second quarter, compared with an increase of 
$26.6 billion in the first.  The before-tax measure of profits does not reflect, as does profits from current 
production, the capital consumption and inventory valuation adjustments.  These adjustments convert 
depreciation of fixed assets and inventory withdrawals reported on a tax-return, historical-cost basis to 
the current-cost measures used in the national income and product accounts.  The capital consumption 
adjustment decreased $7.8 billion in the second quarter (from -$227.9 billion to -$235.7 billion), in 
contrast to an increase of $9.1 billion in the first.  The inventory valuation adjustment decreased $13.9 
billion (from -$40.2 billion to -$54.1 billion), compared with a decrease of $19.2 billion.


                               *          *          *

     
      BEA's national, international, regional, and industry estimates; the Survey of Current Business; 
and BEA news releases are available without charge on BEA's Web site at www.bea.gov.  By visiting 
the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.



                               *          *          *


                  Next release -- September 27, 2007, at 8:30 A.M. EDT for:
                  Gross Domestic Product:  Second Quarter 2007 (Final)
                  Corporate Profits: Second Quarter 2007 (Final)
	



                                    Table 1.--Real Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2004   2005   2006 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06  II 06 III 06  IV 06   I 07r II 07r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    3.6    3.1    2.9    7.5    2.7    3.0    3.5    3.6    2.5    3.1    2.8    4.5    1.2    4.8    2.4    1.1    2.1     .6    4.0

Personal consumption expenditures...    3.6    3.2    3.1    5.8    2.3    4.4    2.4    3.5    4.2    2.4    3.5    4.1    1.2    4.4    2.4    2.8    3.9    3.7    1.4
  Durable goods.....................    6.3    4.9    3.8   16.7     .7    5.8    1.9    7.8    7.0    2.2   11.3    6.2  -13.0   16.6     .8    5.6    3.9    8.8    1.7
  Nondurable goods..................    3.5    3.6    3.6    7.7    1.8    4.6    1.5    3.1    4.9    3.5    3.7    2.5    4.7    4.5    2.3    3.2    4.3    3.0    -.3
  Services..........................    3.2    2.7    2.7    2.9    2.8    4.1    3.0    2.9    3.4    1.9    1.8    4.4    2.6    2.1    2.7    2.0    3.7    3.1    2.3

Gross private domestic investment...    9.7    5.6    2.7   17.7    9.3    2.1   20.7    8.0    6.4    5.3   -3.9    7.0   13.4    4.3     .6   -4.1  -14.1   -8.2    4.7
  Fixed investment..................    7.3    6.9    2.4   13.6    5.5    -.2   12.9    9.3    7.3    4.0    7.9    8.0    2.3    7.9   -1.9   -4.7   -7.1   -4.4    3.3
    Nonresidential..................    5.8    7.1    6.6    9.4    2.8   -2.6   10.7   12.3   10.3    3.3    5.0    8.6    3.4   13.3    4.2    5.1   -1.4    2.1   11.1
      Structures....................    1.3     .5    8.4    -.8   -4.7    -.3    6.1    3.6    -.2    2.1   -1.6   -6.3    4.8   15.0   16.4   10.8    7.4    6.4   27.7
      Equipment and software........    7.4    9.6    5.9   13.2    5.6   -3.4   12.4   15.5   14.3    3.8    7.4   14.5    3.1   13.0    -.1    2.9   -4.9     .3    4.3
    Residential.....................   10.0    6.6   -4.6   22.2   10.6    4.0   16.7    4.2    2.4    5.3   13.1    6.9     .5    -.7  -11.7  -20.4  -17.2  -16.3  -11.6
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    9.7    6.9    8.4   11.4   20.8   10.0    6.5    3.1   10.0    6.0    9.5    2.1   10.6   11.5    5.7    5.7   14.3    1.1    7.6
    Goods...........................    9.0    7.5    9.9    8.8   19.8    7.4    7.2    6.2    7.2    5.8   13.6    1.9   12.6   15.5    6.5    7.4    9.6     .9    7.3
    Services........................   11.5    5.4    4.8   17.5   23.1   16.2    5.1   -3.4   16.8    6.5     .9    2.6    6.3    2.9    3.9    2.0   26.0    1.6    8.3
  Imports...........................   11.3    5.9    5.9    3.7   17.6   12.3   15.2    4.8   13.8    2.1     .8    2.1   16.2    6.9     .9    5.4    1.6    3.9   -3.2
    Goods...........................   11.3    6.6    6.0     .6   17.2   11.5   16.6    5.5   14.5    3.2    1.0    2.5   17.3    6.5    1.1    6.2    -.6    4.2   -3.1
    Services........................   11.5    2.3    5.2   21.2   19.6   16.5    8.9    1.8   10.5   -3.5    -.5     .0   10.3    9.5    -.1    1.3   14.2    2.3   -3.8

Government consumption expenditures
 and gross investment...............    1.4     .7    1.8    1.5     .7    1.5    1.3    1.6   -1.8    1.3    1.2    3.2   -1.9    4.9    1.0     .8    3.5    -.5    4.1
  Federal...........................    4.2    1.5    2.2     .4    3.1    6.1    2.4    6.2   -4.6    2.8     .7    8.6   -6.2    8.4   -1.6     .9    7.3   -6.3    5.9
    National defense................    5.8    1.5    1.9   -5.3    8.1    8.1    2.0   10.9   -9.7    4.6    2.6   10.0  -11.7    6.8    2.3   -1.5   16.9  -10.8    8.6
    Nondefense......................    1.1    1.3    2.8   12.4   -6.0    2.3    3.2   -2.7    6.5    -.8   -3.0    5.8    5.8   11.9   -8.8    6.0  -10.0    3.8     .5
  State and local...................    -.2     .3    1.6    2.1    -.6   -1.0     .7   -1.1    -.1     .4    1.5     .0     .7    2.9    2.5     .7    1.3    3.0    3.0

Addenda:
  Final sales of domestic product...    3.3    3.3    2.8    6.9    2.1    2.6    2.4    3.8    2.7    2.9    4.8    4.6    -.5    5.4    2.0    1.0    3.5    1.3    3.7
  Gross domestic purchases..........    4.1    3.1    2.8    6.6    3.0    3.6    4.8    3.8    3.4    2.6    1.9    4.3    2.5    4.5    1.9    1.3     .8    1.1    2.4
  Final sales to domestic
   purchasers.......................    3.8    3.3    2.7    6.1    2.5    3.2    3.7    4.0    3.6    2.4    3.7    4.5     .8    5.0    1.5    1.2    2.1    1.7    2.2
  Gross national product (GNP)......    3.8    3.0    2.8    7.3    3.5    3.6    2.6    3.9    1.5    3.6    2.7    5.1     .0    5.2    2.4     .5    2.6     .7    4.0
  Disposable personal income........    3.6    1.7    3.1    6.3    1.7    3.7    2.4    2.9    7.5   -3.3    2.5   -1.2    6.6    4.9     .2    1.7    6.2    5.4     .1

  Current-dollar measures:
    GDP.............................    6.6    6.4    6.1    9.7    4.9    6.8    7.4    6.0    5.9    7.1    5.5    8.1    4.8    8.4    6.0    3.4    3.8    4.9    6.7
    Final sales of domestic product.    6.2    6.6    6.1    9.1    4.4    6.4    6.2    6.1    6.0    6.9    7.5    8.3    3.0    9.0    5.5    3.4    5.2    5.5    6.5
    Gross domestic purchases........    7.3    6.9    6.1    9.1    4.9    8.0    9.2    6.7    7.2    6.3    5.5    9.1    6.3    7.3    6.2    3.8     .9    4.9    6.3
    Final sales to domestic
     purchasers.....................    7.0    7.1    6.1    8.5    4.4    7.6    8.0    6.8    7.3    6.1    7.4    9.3    4.6    7.9    5.7    3.7    2.1    5.5    6.1
    GNP.............................    6.8    6.3    6.0    9.6    5.8    7.4    6.5    6.3    4.8    7.6    5.4    8.7    3.5    8.8    6.0    2.8    4.3    4.9    6.7
    Disposable personal income......    6.4    4.7    5.9    8.9    3.2    7.3    6.3    4.9   10.8   -1.2    6.0    3.0    9.6    6.7    4.5    4.4    5.2    9.1    4.4
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the first
quarter of 2007.
  See "Explanatory Note" at the end of the tables.

                                                Table 2.--Contributions to Percent Change in Real Gross Domestic Product
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2004   2005   2006 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06  II 06 III 06  IV 06   I 07  II 07r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Percent change at annual rate:

    Gross domestic product..........    3.6    3.1    2.9    7.5    2.7    3.0    3.5    3.6    2.5    3.1    2.8    4.5    1.2    4.8    2.4    1.1    2.1     .6    4.0

Percentage points at annual rates:

  Personal consumption expenditures.   2.56   2.24   2.15   4.13   1.59   3.12   1.73   2.46   2.93   1.68   2.40   2.82    .84   3.00   1.63   1.88   2.68   2.56   1.03

    Durable goods...................    .53    .40    .31   1.39    .06    .49    .16    .64    .57    .18    .90    .51  -1.13   1.23    .07    .43    .30    .67    .14
      Motor vehicles and parts......    .08    .00   -.11    .46   -.29    .09   -.11    .17    .23   -.27    .48    .20  -1.57    .48   -.04    .16    .00    .35   -.09
      Furniture and household
       equipment....................    .35    .31    .35    .67    .27    .29    .27    .36    .25    .31    .28    .39    .35    .54    .17    .24    .25    .28    .13
      Other.........................    .10    .09    .07    .26    .08    .11    .00    .10    .09    .13    .14   -.08    .09    .22   -.06    .04    .05    .04    .10

    Nondurable goods................    .71    .72    .74   1.53    .36    .92    .31    .62    .97    .71    .74    .50    .93    .91    .47    .64    .86    .61   -.07
      Food..........................    .31    .38    .38    .61    .02    .59    .10    .21    .60    .31    .38    .49    .40    .47    .13    .24    .68    .16   -.14
      Clothing and shoes............    .14    .17    .13    .31   -.02    .31   -.13    .15    .23    .18    .27    .00    .29    .11    .05    .14    .10    .22    .07
      Gasoline, fuel oil, and other
       energy goods.................    .03   -.02   -.01    .10    .06    .00    .04   -.03    .00    .05   -.11   -.11    .06    .02    .02    .05   -.15    .06   -.09
      Other.........................    .24    .19    .23    .52    .30    .03    .29    .29    .14    .17    .20    .13    .18    .31    .27    .20    .23    .17    .09

    Services........................   1.32   1.12   1.11   1.21   1.18   1.71   1.25   1.21   1.39    .79    .76   1.81   1.05    .86   1.10    .81   1.52   1.28    .96
      Housing.......................    .32    .33    .28    .35    .40    .35    .25    .29    .31    .36    .36    .36    .30    .30    .23    .18    .20    .26    .29
      Household operation...........    .10    .08   -.03    .02    .17    .13    .06    .06    .15    .04   -.02    .33   -.22   -.40    .17    .16    .13    .04    .02
        Electricity and gas.........    .02    .04   -.05   -.03    .12    .04   -.05   -.05    .15    .03   -.04    .29   -.21   -.42    .14    .17    .07    .03    .02
        Other household operation...    .08    .03    .02    .05    .05    .08    .11    .12    .01    .01    .02    .04   -.01    .02    .03   -.01    .07    .01    .01
      Transportation................    .04    .03    .03    .03    .02    .04    .08    .02    .06    .02    .01    .01    .03    .06   -.03    .06    .11    .07    .11
      Medical care..................    .36    .41    .40    .28    .28    .33    .45    .52    .40    .27    .38    .53    .53    .49    .26    .12    .34    .47    .36
      Recreation....................    .14    .06    .09    .13    .16    .21    .12    .09    .03    .09    .03    .06    .08    .07    .02    .19    .30    .06   -.03
      Other.........................    .36    .21    .34    .40    .15    .66    .29    .22    .44    .00    .00    .53    .32    .34    .45    .11    .44    .39    .21

  Gross private domestic investment.   1.48    .91    .45   2.56   1.39    .30   3.00   1.26   1.04    .89   -.64   1.15   2.13    .78    .13   -.70  -2.50  -1.36    .72

    Fixed investment................   1.10   1.09    .39   2.00    .83   -.07   1.88   1.41   1.14    .68   1.26   1.28    .38   1.27   -.32   -.80  -1.19   -.70    .51
      Nonresidential................    .56    .70    .68    .92    .29   -.28   1.00   1.16   1.00    .36    .51    .87    .35   1.31    .44    .53   -.15    .22   1.12
        Structures..................    .03    .01    .24   -.02   -.12   -.01    .15    .09    .00    .06   -.04   -.17    .12    .39    .45    .31    .23    .20    .82
        Equipment and software......    .53    .69    .44    .95    .41   -.27    .85   1.07   1.01    .30    .55   1.04    .23    .92   -.01    .21   -.38    .02    .31
          Information processing
           equipment and software...    .33    .34    .27    .82    .70    .04    .15    .24    .41    .46    .32    .32    .26    .48    .05    .24   -.06    .56    .35
            Computers and peripheral
             equipment..............    .08    .17    .12    .26    .21   -.16    .04    .19    .24    .13    .19    .11    .23    .06    .11    .09    .03    .25    .08
            Software................    .14    .10    .06    .32    .20    .14    .00    .11    .17    .07    .14    .02    .05    .08    .03    .05    .04    .14    .15
            Other...................    .12    .08    .10    .23    .29    .05    .12   -.06    .00    .26   -.01    .19   -.01    .34   -.09    .10   -.12    .18    .11
          Industrial equipment......   -.04    .09    .05   -.14   -.22   -.14    .09    .19    .06    .15   -.12    .23    .11   -.08    .17   -.04   -.08   -.04    .19
          Transportation equipment..    .16    .13    .09    .01   -.13   -.07    .52    .43    .40   -.34    .14    .40   -.21    .46   -.24    .10   -.18   -.20   -.34
          Other equipment...........    .07    .12    .04    .26    .07   -.10    .09    .20    .13    .04    .21    .09    .07    .06    .00   -.09   -.05   -.30    .11
      Residential...................    .53    .39   -.29   1.08    .55    .21    .89    .24    .14    .32    .75    .42    .03   -.05   -.76  -1.33  -1.04   -.93   -.61

    Change in private inventories...    .39   -.18    .06    .56    .56    .37   1.12   -.14   -.11    .21  -1.90   -.14   1.74   -.49    .46    .10  -1.31   -.65    .21
      Farm..........................    .06   -.07    .00   -.06   -.05    .28    .37   -.32   -.14   -.25    .13    .12    .01   -.04   -.23    .10    .25    .04   -.03
      Nonfarm.......................    .32   -.11    .06    .62    .60    .08    .75    .18    .03    .46  -2.04   -.26   1.73   -.45    .69    .01  -1.56   -.69    .24

  Net exports of goods and services.   -.68   -.23   -.08    .51   -.47   -.75  -1.50   -.42  -1.07    .26    .83   -.10  -1.41    .13    .49   -.25   1.25   -.51   1.42

    Exports.........................    .93    .70    .88   1.02   1.81    .95    .64    .31    .97    .60    .95    .22   1.07   1.19    .61    .62   1.51    .13    .86
      Goods.........................    .60    .53    .73    .55   1.20    .49    .48    .42    .49    .40    .92    .14    .87   1.10    .49    .56    .73    .07    .58
      Services......................    .33    .17    .16    .47    .61    .46    .16   -.11    .49    .20    .03    .08    .20    .10    .13    .07    .78    .05    .28

    Imports.........................  -1.61   -.92   -.96   -.51  -2.29  -1.70  -2.14   -.73  -2.04   -.34   -.12   -.32  -2.47  -1.07   -.12   -.88   -.26   -.63    .56
      Goods.........................  -1.33   -.86   -.83   -.07  -1.86  -1.32  -1.92   -.69  -1.78   -.43   -.13   -.32  -2.22   -.83   -.12   -.84    .09   -.57    .46
      Services......................   -.27   -.06   -.13   -.44   -.43   -.37   -.21   -.05   -.26    .09    .01    .00   -.26   -.24    .00   -.03   -.35   -.06    .11

  Government consumption expenditures
   and gross investment.............    .27    .14    .35    .29    .14    .29    .25    .30   -.35    .25    .22    .60   -.37    .92    .18    .14    .66   -.09    .79

    Federal.........................    .29    .11    .15    .03    .21    .41    .17    .43   -.33    .19    .05    .59   -.46    .57   -.11    .06    .50   -.46    .41
      National defense..............    .27    .07    .09   -.25    .35    .36    .09    .49   -.48    .22    .12    .46   -.59    .31    .11   -.07    .74   -.54    .40
        Consumption expenditures....    .21    .04    .05   -.32    .31    .35    .03    .34   -.45    .26    .01    .41   -.57    .30   -.05    .00    .60   -.40    .35
        Gross investment............    .06    .03    .04    .07    .05    .01    .06    .15   -.04   -.05    .11    .05   -.02    .01    .15   -.07    .15   -.14    .04
      Nondefense....................    .03    .03    .06    .28   -.14    .06    .08   -.06    .15   -.02   -.07    .13    .13    .27   -.22    .14   -.24    .08    .01
       Consumption expenditures.....    .02    .01    .05    .27   -.12    .07    .03   -.04    .12   -.02   -.08    .07    .06    .23   -.15    .13   -.23    .14   -.02
       Gross investment.............    .00    .02    .02    .01   -.03   -.02    .05   -.03    .03    .00    .01    .06    .07    .04   -.07    .01   -.02   -.06    .03

    State and local.................   -.02    .04    .19    .26   -.07   -.12    .09   -.13   -.01    .05    .17    .01    .09    .35    .29    .08    .16    .36    .38
        Consumption expenditures....    .01    .07    .13   -.04    .07   -.04    .02    .04    .11    .02    .09    .12    .09    .15    .11    .18    .19    .20    .21
        Gross investment............   -.03   -.03    .06    .30   -.15   -.08    .07   -.17   -.12    .03    .08   -.11    .00    .20    .18   -.10   -.03    .17    .17

Addenda:
    Goods...........................   1.50   1.36   1.53   5.00    .81    .68   1.10   2.06   1.18   1.32   1.23   1.83    .49   2.95   1.45   1.06    .36    .06   1.71
    Services........................   1.62   1.36   1.36   1.15   1.63   2.17   1.27   1.40   1.41   1.34    .82   2.50    .56   1.39   1.15   1.15   2.50   1.21   1.89
    Structures......................    .51    .35   -.01   1.33    .22    .10   1.11    .14   -.03    .42    .76    .14    .14    .48   -.16  -1.14   -.77   -.68    .36
    Motor vehicle output............    .14    .14   -.04    .30   -.23    .29   -.21    .87   -.34    .18    .16    .92  -1.21    .51   -.37    .44   -.74    .18    .02
    Final sales of computers........    .04    .22    .13    .50    .15   -.28   -.04    .13    .29    .24    .31    .15    .22    .05    .13    .03    .16   -.01    .21
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised
  See "Explanatory Note" at the end of the tables.

                                      Table 3.--Gross Domestic Product and Related Measures: Level and Change From Preceding Period
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                               Billions of current dollars                                      Billions of chained (2000) dollars
                                  ------------------------------------------------------  -------------------------------------------------------------------------------
                                                        Seasonally adjusted                                    Seasonally adjusted                Change from preceding
                                                          at annual rates                                        at annual rates                          period
                                            --------------------------------------------          --------------------------------------------  -------------------------
                                       2006    II 06   III 06    IV 06     I 07    II 07r    2006    II 06   III 06    IV 06     I 07    II 07r    2006     I 07    II 07r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
     Gross domestic product....... 13,194.7 13,155.0 13,266.9 13,392.3 13,551.9 13,774.7 11,319.4 11,306.7 11,336.7 11,395.5 11,412.6 11,523.8    316.0     17.1    111.2

Personal consumption expenditures.  9,224.5  9,183.9  9,305.7  9,373.7  9,540.5  9,674.4  8,044.1  8,009.3  8,063.8  8,141.2  8,215.7  8,245.2    240.5     74.5     29.5

  Durable goods...................  1,048.9  1,042.8  1,053.8  1,056.5  1,074.0  1,074.8  1,180.5  1,170.2  1,186.3  1,197.6  1,223.2  1,228.4     43.1     25.6      5.2
    Motor vehicles and parts......    434.2    431.8    437.6    434.8    444.5    441.5    437.3    434.3    439.5    439.6    451.5    448.3    -14.0     11.9     -3.2
    Furniture and household
     equipment....................    404.1    401.8    405.1    409.0    414.2    414.5    550.9    544.4    555.4    566.9    579.9    585.9     58.7     13.0      6.0
    Other.........................    210.6    209.2    211.1    212.8    215.3    218.8    213.9    212.4    213.6    215.2    216.6    220.1      8.4      1.4      3.5

  Nondurable goods................  2,688.0  2,692.2  2,732.4  2,705.4  2,759.4  2,823.7  2,337.7  2,325.6  2,343.9  2,368.8  2,386.6  2,384.5     82.3     17.8     -2.1
    Food..........................  1,259.3  1,245.9  1,263.2  1,291.7  1,312.2  1,322.7  1,091.8  1,084.4  1,091.4  1,110.7  1,115.3  1,111.4     41.8      4.6     -3.9
    Clothing and shoes............    357.2    354.9    359.6    363.2    371.1    368.5    391.1    388.0    393.3    397.0    405.1    407.6     18.5      8.1      2.5
    Gasoline, fuel oil, and other
     energy goods.................    340.1    363.3    373.1    306.3    320.9    374.7    198.6    199.0    199.9    197.0    198.2    196.5      -.6      1.2     -1.7
    Other.........................    731.4    728.1    736.5    744.3    755.1    757.8    666.2    663.4    669.5    676.5    681.7    684.5     27.1      5.2      2.8

  Services........................  5,487.6  5,448.9  5,519.5  5,611.8  5,707.1  5,775.9  4,545.5  4,531.6  4,554.0  4,595.5  4,630.7  4,656.7    118.2     35.2     26.0
    Housing.......................  1,381.3  1,371.1  1,392.5  1,413.9  1,435.1  1,455.4  1,148.3  1,146.0  1,151.0  1,156.6  1,163.7  1,171.6     30.0      7.1      7.9
    Household operation...........    501.6    496.7    503.3    509.7    520.0    525.1    412.9    410.9    415.4    419.1    420.1    420.7     -3.6      1.0       .6
      Electricity and gas.........    209.8    206.6    211.3    212.7    220.6    223.3    148.5    147.0    150.9    152.5    153.1    153.5     -4.7       .6       .4
      Other household operation...    291.8    290.1    292.1    297.0    299.4    301.8    265.1    264.9    264.7    266.8    267.1    267.2      2.0       .3       .1
    Transportation................    340.6    338.4    342.5    346.8    349.6    354.7    291.2    289.5    291.0    294.1    296.0    299.1      3.4      1.9      3.1
    Medical care..................  1,587.7  1,578.6  1,596.1  1,617.9  1,656.9  1,677.1  1,300.3  1,298.2  1,301.4  1,310.5  1,323.2  1,332.8     42.1     12.7      9.6
    Recreation....................    381.0    375.7    384.4    392.8    395.3    398.2    321.3    316.8    321.9    330.3    332.0    331.0      9.7      1.7     -1.0
    Other.........................  1,295.3  1,288.4  1,300.5  1,330.7  1,350.1  1,365.4  1,069.9  1,068.6  1,071.6  1,083.5  1,094.1  1,099.8     36.2     10.6      5.7

Gross private domestic investment.  2,209.2  2,239.0  2,224.1  2,152.4  2,117.3  2,140.3  1,919.5  1,948.5  1,928.2  1,856.2  1,816.9  1,837.7     50.2    -39.3     20.8

  Fixed investment................  2,162.5  2,179.5  2,161.3  2,132.4  2,118.9  2,135.7  1,874.7  1,892.3  1,869.6  1,835.5  1,815.2  1,830.0     43.3    -20.3     14.8
    Nonresidential................  1,397.7  1,391.2  1,415.2  1,417.1  1,431.4  1,469.1  1,306.8  1,303.2  1,319.4  1,314.8  1,321.7  1,356.9     81.0      6.9     35.2
      Structures..................    405.1    400.2    416.1    428.4    439.6    465.4    268.6    266.4    273.3    278.3    282.6    300.4     20.8      4.3     17.8
      Equipment and software......    992.6    991.1    999.1    988.7    991.8  1,003.7  1,050.6  1,050.1  1,057.6  1,044.4  1,045.3  1,056.2     58.8       .9     10.9
        Information processing
         equipment and software...    480.9    479.0    484.9    480.5    497.6    507.5    595.9    592.1    602.0    599.6    623.3    638.1     41.6     23.7     14.8
          Computers and peripheral
           equipment..............     91.3     91.7     91.6     90.4     96.6     96.5    .....    .....    .....    .....    .....    .....    .....    .....    .....
          Software................    203.3    202.6    204.9    205.9    210.5    216.0    213.0    212.1    213.8    215.1    219.9    225.2      7.3      4.8      5.3
          Other...................    186.2    184.7    188.4    184.3    190.5    194.9    204.8    203.3    207.1    202.6    209.2    213.4     13.3      6.6      4.2
        Industrial equipment......    166.7    168.5    169.2    167.5    168.1    175.9    149.6    152.0    150.9    148.4    147.3    152.8      5.3     -1.1      5.5
        Transportation equipment..    171.9    169.5    172.4    168.0    162.9    152.7    155.2    153.3    156.3    150.9    144.8    134.6     10.1     -6.1    -10.2
        Other equipment...........    173.2    174.0    172.6    172.7    163.2    167.5    156.2    157.9    155.2    153.7    144.8    148.1      4.3     -8.9      3.3
    Residential...................    764.8    788.2    746.1    715.3    687.5    666.5    569.5    587.5    555.0    529.4    506.3    491.0    -27.6    -23.1    -15.3

  Change in private inventories...     46.7     59.5     62.8     20.0     -1.6      4.7     40.3     51.4     53.9     17.4       .1      5.4      7.1    -17.3      5.3
    Farm..........................     -1.2     -6.6     -3.7      4.7      5.5      4.8      -.9     -5.5     -2.9      3.8      5.0      4.1      -.5      1.2      -.9
    Nonfarm.......................     47.8     66.1     66.5     15.3     -7.0      -.1     41.7     57.6     57.6     13.6     -5.8       .3      7.7    -19.4      6.1

Net exports of goods and services.   -762.0   -780.4   -799.1   -705.3   -714.2   -710.8   -624.5   -626.6   -633.8   -597.3   -612.1   -571.1     -6.5    -14.8     41.0

  Exports.........................  1,467.6  1,447.4  1,484.5  1,531.9  1,549.9  1,598.4  1,304.1  1,288.4  1,306.6  1,350.9  1,354.7  1,379.6    100.7      3.8     24.9
    Goods.........................  1,030.5  1,016.4  1,047.8  1,072.3  1,084.0  1,116.1    927.4    917.3    933.7    955.4    957.6    974.6     83.9      2.2     17.0
    Services......................    437.1    431.0    436.7    459.6    465.9    482.3    377.1    371.5    373.4    395.6    397.2    405.2     17.3      1.6      8.0

  Imports.........................  2,229.6  2,227.8  2,283.6  2,237.2  2,264.0  2,309.2  1,928.6  1,915.0  1,940.4  1,948.2  1,966.8  1,950.7    107.1     18.6    -16.1
    Goods.........................  1,880.4  1,879.8  1,933.3  1,879.9  1,902.7  1,945.2  1,646.9  1,636.3  1,661.0  1,658.7  1,675.6  1,662.4     93.3     16.9    -13.2
    Services......................    349.2    348.0    350.3    357.3    361.4    364.0    283.8    281.0    281.9    291.4    293.1    290.2     14.0      1.7     -2.9

Government consumption expenditures
 and gross investment.............  2,523.0  2,512.5  2,536.1  2,571.4  2,608.3  2,670.7  1,981.4  1,976.5  1,980.2  1,997.2  1,994.7  2,014.7     35.1     -2.5     20.0

  Federal.........................    932.5    926.9    932.0    949.7    946.6    969.2    742.3    737.4    739.2    752.3    740.2    750.8     15.8    -12.1     10.6
    National defense..............    624.3    620.6    620.7    645.2    634.8    654.5    491.5    488.2    486.4    505.8    491.6    501.8      9.1    -14.2     10.2
      Consumption expenditures....    544.8    540.0    542.0    561.5    555.7    573.9    416.6    412.5    412.6    427.7    417.4    426.3      4.9    -10.3      8.9
      Gross investment............     79.5     80.6     78.7     83.7     79.1     80.7     76.6     77.8     75.5     80.1     75.6     77.0      4.9     -4.5      1.4
    Nondefense....................    308.2    306.3    311.3    304.5    311.7    314.7    250.7    249.0    252.7    246.1    248.4    248.7      6.8      2.3       .3
      Consumption expenditures....    268.0    266.7    271.3    264.9    274.0    276.0    212.6    211.4    214.8    208.8    212.5    212.0      4.7      3.7      -.5
      Gross investment............     40.2     39.6     40.0     39.6     37.7     38.7     38.5     38.0     38.3     37.8     35.9     36.9      2.3     -1.9      1.0

  State and local.................  1,590.5  1,585.7  1,604.1  1,621.7  1,661.7  1,701.4  1,239.0  1,238.9  1,240.9  1,244.9  1,254.2  1,263.7     19.4      9.3      9.5
      Consumption expenditures....  1,276.5  1,270.0  1,287.7  1,300.8  1,326.7  1,357.0    990.9    988.1    992.7    997.5  1,002.5  1,007.7     13.2      5.0      5.2
      Gross investment............    314.0    315.7    316.4    320.9    335.0    344.4    248.0    250.7    248.1    247.3    251.5    255.8      6.2      4.2      4.3

Residual..........................    .....    .....    .....    .....    .....    .....    -93.4    -86.5    -99.3   -108.2   -130.7   -135.5    .....    .....    .....

Addenda:
  Final sales of domestic product. 13,148.0 13,095.5 13,204.1 13,372.3 13,553.5 13,770.0 11,275.9 11,252.1 11,279.7 11,375.8 11,411.6 11,516.9    309.0     35.8    105.3
  Gross domestic purchases........ 13,956.7 13,935.4 14,065.9 14,097.6 14,266.1 14,485.4 11,937.1 11,926.1 11,963.6 11,987.1 12,018.7 12,089.9    324.0     31.6     71.2
  Final sales to domestic
   purchasers..................... 13,910.1 13,875.9 14,003.2 14,077.6 14,267.7 14,480.7 11,893.4 11,871.3 11,906.4 11,967.3 12,017.4 12,082.7    317.0     50.1     65.3

  Gross domestic product.......... 13,194.7 13,155.0 13,266.9 13,392.3 13,551.9 13,774.7 11,319.4 11,306.7 11,336.7 11,395.5 11,412.6 11,523.8    316.0     17.1    111.2
  Plus: Income receipts from
   the rest of the world..........    691.4    688.9    709.7    733.8    752.2    801.0    595.0    593.2    607.9    628.3    638.2    673.1    112.5      9.9     34.9
  Less: Income payments to
   the rest of the world..........    633.4    625.0    664.7    673.7    689.0    736.6    543.6    536.7    568.0    575.1    583.2    617.5    122.8      8.1     34.3
  Equals: Gross national product.. 13,252.7 13,218.9 13,311.9 13,452.4 13,615.1 13,839.1 11,370.1 11,362.5 11,375.9 11,447.8 11,466.7 11,578.6    305.4     18.9    111.9

  Net domestic product............ 11,579.5 11,552.2 11,638.1 11,737.9 11,881.0 12,089.2  9,872.8  9,867.0  9,884.7  9,928.3  9,937.7 10,040.7    358.1      9.4    103.0
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised
  Note.--Users are cautioned that particularly for components that
exhibit rapid change in prices relative to other prices in the
economy, the chained-dollar estimates should not be used to measure
the component's relative importance or its contribution to the
growth rate of more aggregate series.  For accurate estimates of
the contributions to percent changes in real GDP, use table 2.
  See "Explanatory Note" at the end of the tables.

                              Table 4.--Price Indexes for Gross Domestic Product and Related Measures: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2004   2005   2006 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06  II 06 III 06  IV 06   I 07  II 07r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP).    2.9    3.2    3.2    2.1    2.2    3.7    3.8    2.3    3.2    3.9    2.6    3.5    3.5    3.4    3.5    2.4    1.7    4.2    2.7

Personal consumption expenditures...    2.6    2.9    2.8    2.4    1.5    3.5    3.8    2.0    3.0    2.2    3.4    4.3    2.8    1.7    4.3    2.6    -.9    3.5    4.2
  Durable goods.....................   -1.8    -.7   -1.3   -4.0   -3.5    -.5     .3   -2.5     .2     .1    -.4   -2.8   -1.1   -1.0    -.7   -1.3   -2.7   -1.9   -1.4
  Nondurable goods..................    3.3    3.7    3.1    3.9     .5    5.3    6.2    1.4    4.7     .3    5.0    9.5     .8     .3    8.6    2.8   -7.9    5.0   10.0
  Services..........................    3.2    3.4    3.4    3.0    3.0    3.5    3.4    3.1    2.8    3.6    3.4    3.3    4.6    3.0    3.2    3.2    3.0    3.8    2.6

Gross private domestic investment...    3.4    4.2    3.5    1.3    3.5    4.1    4.7    3.9    3.9    5.2    2.8    4.0    5.8    4.0    2.5    1.6    2.2    2.0    -.2
  Fixed investment..................    3.4    4.3    3.5    1.3    3.5    4.1    4.7    3.9    3.9    5.3    2.9    4.2    6.0    3.9    2.4    1.5    2.0    1.9    -.1
    Nonresidential..................    1.3    2.9    3.1     .7    1.4    1.1    2.4    1.3    2.5    4.5    2.4    1.6    4.6    3.9    2.8    1.9    2.0    1.9    -.1
      Structures....................    6.2   11.7   11.7    2.3    4.2    6.8    7.6   10.1   12.0   12.8    8.7   13.8   17.6   13.0   10.7    5.6    4.6    4.1   -1.5
      Equipment and software........    -.3    -.1     .0     .1     .4    -.8     .7   -1.7    -.6    1.8     .3   -2.5     .2     .6    -.2     .4     .8    1.0     .6
    Residential.....................    7.3    6.7    4.4    2.6    7.7    9.8    8.8    8.5    6.2    6.6    3.6    8.7    8.5    3.9    1.8     .8    2.1    2.0    -.1
  Change in private inventories.....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....

Net exports of goods and services...  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....  .....
  Exports...........................    3.5    3.6    3.4     .9    3.0    5.5    4.8    1.9    4.2    4.6    3.6    2.5    3.0    2.7    6.0    4.6    -.8    3.6    5.2
    Goods...........................    3.7    3.1    3.3    -.7    4.1    6.3    5.2    1.0    3.6    4.3    3.0    1.3    2.3    3.0    6.3    5.2     .1    3.5    4.8
    Services........................    3.2    4.9    3.7    4.7     .7    3.9    3.8    3.8    5.5    5.0    4.9    5.2    4.8    2.2    5.5    3.3   -2.7    3.9    6.1
  Imports...........................    4.9    6.3    4.0    2.6     .4    9.2    7.3    5.3    6.9    2.2    9.7   10.3    4.3   -1.5   10.1    4.7   -9.4    1.0   11.8
    Goods...........................    4.9    6.5    4.2    2.5     .5   10.0    7.9    5.0    7.0    2.0   10.1   10.9    4.9   -1.9   10.4    5.3  -10.1     .7   12.8
    Services........................    4.4    5.6    3.1    3.1     .0    4.9    4.7    6.7    6.0    3.5    7.7    7.5    1.3     .5    8.4    1.4   -5.3    2.3    7.0

Government consumption expenditures
 and gross investment...............    4.5    5.8    4.9    2.5    2.2    7.2    5.0    4.8    5.7    7.5    4.6    6.4    5.0    5.1    5.7    3.0    2.1    6.4    5.6
  Federal...........................    4.7    4.8    3.9    1.0    1.1   11.6    5.5    2.5    2.6   11.5    2.3    3.4     .8    9.1    4.0    1.3     .5    5.3    3.8
    National defense................    4.7    5.3    4.1    1.2    1.3   10.6    5.6    2.9    3.1   12.2    2.5    3.5    1.3    9.3    4.2    1.6    -.1    5.0    4.1
    Nondefense......................    4.9    4.0    3.5     .6     .6   13.8    5.2    1.4    1.7   10.1    1.8    3.2    -.2    8.9    3.5     .7    1.7    5.9    3.4
  State and local...................    4.3    6.4    5.4    3.3    2.9    4.6    4.7    6.2    7.6    5.2    6.1    8.1    7.6    2.7    6.7    4.0    3.1    7.0    6.6

Addenda:
  Final sales of domestic product...    2.9    3.2    3.2    2.1    2.2    3.7    3.8    2.3    3.2    3.9    2.6    3.5    3.5    3.4    3.5    2.3    1.7    4.2    2.7
  Gross domestic purchases..........    3.1    3.7    3.3    2.2    1.9    4.3    4.2    2.8    3.6    3.6    3.5    4.6    3.7    2.7    4.2    2.5     .1    3.8    3.8
  Final sales to domestic
   purchasers.......................    3.1    3.7    3.3    2.2    1.9    4.3    4.2    2.7    3.6    3.6    3.5    4.6    3.7    2.7    4.2    2.5     .1    3.8    3.8
  Gross national product (GNP)......    2.9    3.2    3.1    2.1    2.2    3.7    3.8    2.3    3.2    3.9    2.6    3.5    3.5    3.4    3.5    2.4    1.7    4.2    2.7

  Implicit price deflators:
    GDP.............................    2.9    3.2    3.2    2.1    2.2    3.7    3.8    2.3    3.2    3.9    2.6    3.5    3.5    3.4    3.5    2.4    1.7    4.2    2.7
    Gross domestic purchases........    3.1    3.6    3.3    2.3    1.9    4.3    4.2    2.7    3.7    3.6    3.6    4.6    3.7    2.7    4.2    2.5     .1    3.8    3.8
    GNP.............................    2.9    3.2    3.2    2.1    2.2    3.7    3.8    2.3    3.2    3.9    2.6    3.5    3.5    3.4    3.5    2.4    1.7    4.2    2.7
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised
  See "Explanatory Note" at the end of the tables.

                                      Table 5.--Real Gross Domestic Product, Quantity Indexes
                                                     [Index numbers, 2000=100]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Seasonally adjusted
                                                                                ---------------------------------------------------
                                                  2004       2005       2006      II 06     III 06      IV 06       I 07      II 07r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    108.748    112.086    115.304    115.175    115.481    116.080    116.254    117.387

Personal consumption expenditures..........    112.197    115.791    119.359    118.843    119.652    120.801    121.906    122.343
  Durable goods............................    125.652    131.748    136.735    135.542    137.413    138.720    141.680    142.291
  Nondurable goods.........................    111.833    115.828    120.051    119.434    120.370    121.650    122.563    122.458
  Services.................................    109.726    112.687    115.696    115.341    115.911    116.969    117.865    118.527

Gross private domestic investment..........    102.003    107.709    110.607    112.274    111.106    106.955    104.690    105.890
  Fixed investment.........................    102.012    109.080    111.657    112.705    111.354    109.325    108.113    108.993
    Nonresidential.........................     92.873     99.490    106.062    105.770    107.090    106.711    107.277    110.128
      Structures...........................     78.760     79.127     85.770     85.063     87.270     88.849     90.241     95.928
      Equipment and software...............     98.505    107.935    114.332    114.276    115.100    113.662    113.753    114.945
    Residential............................    125.343    133.608    127.433    131.465    124.190    118.462    113.301    109.873
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............    102.723    109.775    118.957    117.528    119.182    123.222    123.568    125.846

Imports of goods and services..............    116.546    123.425    130.683    129.764    131.483    132.014    133.272    132.182

Government consumption expenditures and
 gross investment..........................    112.210    113.050    115.092    114.807    115.022    116.007    115.865    117.026
  Federal..................................    123.693    125.524    128.255    127.414    127.708    129.977    127.886    129.727
  State and local..........................    106.384    106.721    108.418    108.407    108.584    108.935    109.748    110.574

Addenda:
  Final sales of domestic product..........    108.804    112.360    115.526    115.282    115.565    116.550    116.916    117.995
  Gross domestic purchases.................    110.444    113.894    117.071    116.963    117.331    117.562    117.871    118.570
  Final sales to domestic purchasers.......    110.505    114.166    117.292    117.074    117.421    118.021    118.515    119.159
  Gross national product...................    109.031    112.265    115.363    115.286    115.422    116.152    116.344    117.479
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised
  See "Explanatory Note" at the end of the tables.

                                        Table 6.--Price Indexes for Gross Domestic Product
                                                     [Index numbers, 2000=100]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Seasonally adjusted
                                                                                ---------------------------------------------------
                                                  2004       2005       2006      II 06     III 06      IV 06       I 07      II 07r
-----------------------------------------------------------------------------------------------------------------------------------
        Gross domestic product.............    109.462    113.005    116.568    116.350    117.030    117.527    118.750    119.538

Personal consumption expenditures
 (PCE).....................................    108.392    111.588    114.675    114.670    115.406    115.143    116.129    117.339
  Durable goods............................     90.696     90.018     88.857     89.110     88.827     88.213     87.799     87.489
  Nondurable goods.........................    107.626    111.561    114.989    115.763    116.576    114.210    115.620    118.418
  Services.................................    112.929    116.726    120.725    120.252    121.209    122.122    123.252    124.041

Gross private domestic investment..........    106.686    111.155    115.090    114.891    115.335    115.958    116.532    116.478
  Fixed investment.........................    106.845    111.404    115.352    115.169    115.592    116.162    116.718    116.691
    Nonresidential.........................    100.896    103.778    106.961    106.764    107.267    107.789    108.301    108.277
      Structures...........................    120.912    135.013    150.806    150.294    152.344    154.071    155.637    155.034
      Equipment and software...............     94.600     94.527     94.485     94.379     94.470     94.667     94.892     95.029
    Residential............................    120.587    128.653    134.288    134.137    134.390    135.076    135.736    135.701
  Change in private inventories............      .....      .....      .....      .....      .....      .....      .....      .....

Exports of goods and services..............    104.997    108.803    112.537    112.359    113.641    113.424    114.433    115.879

Imports of goods and services..............    104.526    111.117    115.610    116.339    117.689    114.834    115.114    118.378

Government consumption expenditures and
 gross investment..........................    114.754    121.435    127.334    127.125    128.076    128.757    130.765    132.563
  Federal..................................    115.322    120.914    125.622    125.686    126.097    126.244    127.886    129.092
  State and local..........................    114.431    121.758    128.370    127.998    129.271    130.272    132.499    134.648

Addenda:
  PCE excluding food and energy............    107.338    109.670    112.130    111.871    112.519    113.052    113.730    114.106
  Market-based PCE\1\......................    107.386    110.307    113.168    113.240    113.926    113.456    114.472    115.761
  Market-based PCE excluding food
   and energy\1\...........................    105.857    107.667    109.717    109.500    110.072    110.507    111.161    111.466
  Final sales of domestic product..........    109.487    113.040    116.603    116.388    117.065    117.553    118.773    119.566
  Gross domestic purchases.................    109.235    113.225    116.920    116.850    117.575    117.609    118.702    119.819
  Final sales to domestic purchasers.......    109.259    113.261    116.956    116.890    117.612    117.636    118.727    119.848
  Gross national product...................    109.456    112.999    116.558    116.342    117.022    117.515    118.740    119.529

  Implicit price deflators:
    Gross domestic product.................    109.462    113.000    116.567    116.347    117.026    117.522    118.745    119.532
    Final sales of domestic product........    109.487    113.040    116.603    116.383    117.061    117.550    118.770    119.563
    Gross domestic purchases...............    109.234    113.221    116.919    116.848    117.573    117.606    118.700    119.814
    Final sales to domestic purchasers.....    109.259    113.261    116.956    116.886    117.610    117.634    118.725    119.847
    Gross national product.................    109.455    112.994    116.558    116.338    117.019    117.511    118.736    119.523
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised
  1. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.  Percentage changes for these series are
included in the addenda to table 8 and in appendix table A.
  See "Explanatory Note" at the end of the tables.

                                               Table 7.--Real Gross Domestic Product: Percent Change from Preceding Year
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                           1991    1992    1993    1994    1995    1996    1997    1998    1999    2000    2001    2002    2003    2004    2005    2006
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     -.2     3.3     2.7     4.0     2.5     3.7     4.5     4.2     4.5     3.7      .8     1.6     2.5     3.6     3.1     2.9

Personal consumption expenditures......      .2     3.3     3.3     3.7     2.7     3.4     3.8     5.0     5.1     4.7     2.5     2.7     2.8     3.6     3.2     3.1
  Durable goods........................    -5.6     5.9     7.8     8.4     4.4     7.8     8.6    11.3    11.7     7.3     4.3     7.1     5.8     6.3     4.9     3.8
  Nondurable goods.....................     -.2     2.0     2.7     3.5     2.2     2.6     2.7     4.0     4.6     3.8     2.0     2.5     3.2     3.5     3.6     3.6
  Services.............................     1.7     3.5     2.8     2.9     2.6     2.9     3.3     4.2     4.0     4.5     2.4     1.9     1.9     3.2     2.7     2.7

Gross private domestic investment......    -8.1     8.1     8.9    13.6     3.1     8.9    12.4     9.8     7.8     5.7    -7.9    -2.6     3.6     9.7     5.6     2.7
  Fixed investment.....................    -6.5     5.9     8.6     9.3     6.5     9.0     9.2    10.2     8.3     6.5    -3.0    -5.2     3.4     7.3     6.9     2.4
    Nonresidential.....................    -5.4     3.2     8.7     9.2    10.5     9.3    12.1    11.1     9.2     8.7    -4.2    -9.2     1.0     5.8     7.1     6.6
      Structures.......................   -11.1    -6.0     -.7     1.8     6.4     5.6     7.3     5.1     -.4     6.8    -2.3   -17.1    -4.1     1.3      .5     8.4
      Equipment and software...........    -2.6     7.3    12.5    11.9    12.0    10.6    13.8    13.3    12.7     9.4    -4.9    -6.2     2.8     7.4     9.6     5.9
    Residential........................    -9.6    13.8     8.2     9.6    -3.2     8.0     1.9     7.6     6.0      .8      .4     4.8     8.4    10.0     6.6    -4.6
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................     6.6     6.9     3.2     8.7    10.1     8.4    11.9     2.4     4.3     8.7    -5.4    -2.3     1.3     9.7     6.9     8.4
    Goods..............................     6.9     7.5     3.3     9.7    11.7     8.8    14.3     2.2     3.8    11.2    -6.1    -4.0     1.8     9.0     7.5     9.9
    Services...........................     6.0     5.5     3.2     6.3     6.3     7.2     5.9     2.9     5.6     2.9    -3.7     1.9      .0    11.5     5.4     4.8
  Imports..............................     -.6     7.0     8.8    11.9     8.0     8.7    13.6    11.6    11.5    13.1    -2.7     3.4     4.1    11.3     5.9     5.9
    Goods..............................     -.1     9.3    10.1    13.3     9.0     9.3    14.4    11.7    12.4    13.5    -3.2     3.7     4.9    11.3     6.6     6.0
    Services...........................    -2.6    -2.6     2.9     5.7     3.3     5.5     9.4    11.4     6.9    11.1     -.3     2.1      .0    11.5     2.3     5.2

Government consumption expenditures
 and gross investment..................     1.1      .5     -.9      .0      .5     1.0     1.9     1.9     3.9     2.1     3.4     4.4     2.5     1.4      .7     1.8
  Federal..............................     -.2    -1.7    -4.2    -3.7    -2.7    -1.2    -1.0    -1.1     2.2      .9     3.9     7.0     6.8     4.2     1.5     2.2
    National defense...................    -1.1    -5.0    -5.6    -4.9    -3.8    -1.4    -2.8    -2.1     1.9     -.5     3.9     7.4     8.7     5.8     1.5     1.9
    Nondefense.........................     2.4     6.9     -.7    -1.2     -.4     -.7     2.6      .7     2.8     3.5     3.9     6.3     3.4     1.1     1.3     2.8
  State and local......................     2.1     2.2     1.4     2.6     2.6     2.3     3.6     3.6     4.7     2.7     3.2     3.1      .2     -.2      .3     1.6

Addenda:
  Final sales of domestic product......      .1     3.0     2.6     3.4     3.0     3.7     4.0     4.2     4.5     3.8     1.6     1.2     2.5     3.3     3.3     2.8
  Gross domestic purchases.............     -.8     3.3     3.2     4.4     2.4     3.8     4.8     5.3     5.3     4.4      .9     2.2     2.8     4.1     3.1     2.8
  Final sales to domestic purchasers...     -.6     3.1     3.2     3.8     2.8     3.8     4.3     5.3     5.4     4.5     1.8     1.8     2.8     3.8     3.3     2.7
  Gross national product...............     -.3     3.3     2.7     3.9     2.6     3.7     4.4     4.0     4.6     3.7      .8     1.5     2.7     3.8     3.0     2.8
  Real disposable personal income......      .5     3.4     1.0     2.7     2.8     3.0     3.5     5.8     3.0     4.8     1.9     3.1     2.2     3.6     1.7     3.1

  Price indexes:
    Gross domestic purchases...........     3.3     2.3     2.2     2.1     2.1     1.8     1.4      .6     1.6     2.5     2.0     1.6     2.3     3.1     3.7     3.3
    Gross domestic purchases excluding
     food and energy...................     3.5     2.6     2.3     2.2     2.2     1.5     1.3     1.0     1.4     1.9     1.9     1.9     1.9     2.7     3.1     2.9
    GDP................................     3.5     2.3     2.3     2.1     2.0     1.9     1.7     1.1     1.4     2.2     2.4     1.7     2.1     2.9     3.2     3.2
    GDP excluding food and energy......     3.6     2.5     2.4     2.2     2.1     1.7     1.7     1.2     1.5     2.0     2.1     2.1     1.9     2.7     3.2     3.1
    Personal consumption expenditures..     3.6     2.9     2.3     2.1     2.1     2.2     1.7      .9     1.7     2.5     2.1     1.4     2.0     2.6     2.9     2.8
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

                                            Table 8.--Real Gross Domestic Product: Percent Change From Quarter One Year Ago
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                         III 03   IV 03    I 04   II 04  III 04   IV 04    I 05   II 05  III 05   IV 05    I 06   II 06  III 06   IV 06    I 07r  II 07r
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Gross domestic product (GDP)....     3.1     3.7     4.1     4.1     3.2     3.1     3.2     3.0     3.2     2.9     3.3     3.2     2.4     2.6     1.5     1.9

Personal consumption expenditures
 (PCE).................................     3.2     3.4     4.0     3.7     3.2     3.7     3.1     3.4     3.5     2.8     3.3     3.0     2.7     3.4     3.2     2.9
  Durable goods........................     6.7     8.3     9.8     6.1     4.0     5.6     4.7     7.0     6.6     1.2     4.6     2.1     2.0     6.6     4.7     5.0
  Nondurable goods.....................     4.3     3.9     4.1     3.9     2.8     3.5     3.3     3.8     3.6     3.6     3.8     3.5     3.7     3.6     3.2     2.5
  Services.............................     2.0     2.2     2.9     3.2     3.2     3.3     2.8     2.5     2.9     2.7     2.7     3.0     2.4     2.6     2.9     2.8

Gross private domestic investment......     4.4     7.0     7.9    12.2     9.8     9.1     9.9     3.8     3.6     5.3     5.0     6.2     3.4    -3.6    -6.6    -5.7
  Fixed investment.....................     5.4     7.2     7.3     7.8     6.8     7.2     8.3     7.1     6.8     5.5     6.5     4.0      .8    -1.6    -4.5    -3.3
    Nonresidential.....................     2.9     4.9     4.9     4.9     5.6     7.5     9.1     7.7     6.8     5.1     7.5     7.3     6.4     5.2     2.5     4.1
      Structures.......................      .1      .2     2.0      .0     1.1     2.3     2.9     1.0    -1.6     -.3     2.7     7.1    11.6    12.3    10.2    12.8
      Equipment and software...........     3.9     6.6     6.0     6.7     7.3     9.4    11.4    10.1     9.9     7.1     9.4     7.4     4.6     2.5     -.5      .6
    Residential........................    10.6    11.7    11.6    13.2     8.8     6.7     7.0     6.2     6.9     6.4     4.8    -1.5    -8.5   -12.8   -16.5   -16.4
  Change in private inventories........   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....

Net exports of goods and services......   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....   .....
  Exports..............................      .1     5.8     9.8    12.0     9.9     7.4     6.4     7.1     6.9     7.0     8.4     7.4     8.4     9.3     6.6     7.1
    Goods..............................     -.1     7.1     8.4    10.7    10.0     7.0     6.6     8.1     7.0     8.3    10.7     9.0    10.4     9.7     6.1     6.2
    Services...........................      .5     3.0    13.0    15.3     9.8     8.3     6.0     4.9     6.6     4.1     3.2     3.9     3.8     8.3     7.9     9.1
  Imports..............................     2.8     4.8     9.3    12.1    12.4    11.5     8.8     5.3     4.6     5.1     6.3     6.4     7.2     3.7     2.9     1.9
    Goods..............................     3.2     5.3     9.3    11.3    12.6    11.9     9.8     5.9     5.2     5.8     6.6     6.7     7.6     3.2     2.7     1.6
    Services...........................     1.0     2.2     9.2    16.4    11.5     9.3     4.3     1.9     1.5     1.4     4.7     4.8     5.2     6.1     4.3     3.3

Government consumption expenditures
 and gross investment..................     2.7     1.7     2.5     1.3     1.3      .7      .6      .6      .9      .9     1.8     1.8     1.2     2.5     1.2     1.9
  Federal..............................     7.3     5.5     7.1     3.0     4.4     2.4     1.6     1.2     1.8     1.3     2.7     2.1      .3     3.7      .0     1.8
    National defense...................     9.1     7.5    10.8     3.1     7.2     2.5     1.7     1.8     1.6     1.1     1.6     1.5    -1.3     5.9     1.2     2.8
    Nondefense.........................     4.0     1.9      .3     2.8     -.9     2.3     1.5     -.1     2.1     1.9     5.0     3.4     3.4     -.7    -2.5     -.1
  State and local......................      .3     -.4     -.1      .3     -.5     -.4      .0      .2      .5      .7     1.3     1.5     1.7     1.8     1.9     2.0

Addenda:
  Final sales of domestic product......     3.2     3.7     4.0     3.5     2.7     2.8     2.9     3.5     3.7     2.9     3.5     2.8     1.9     3.0     1.9     2.4
  Gross domestic purchases.............     3.3     3.6     4.3     4.5     3.8     3.9     3.7     2.9     3.1     2.8     3.3     3.3     2.5     2.1     1.2     1.4
  Final sales to domestic purchasers...     3.4     3.7     4.2     3.9     3.3     3.6     3.4     3.4     3.5     2.9     3.5     2.9     2.1     2.4     1.6     1.8
  Gross national product...............     3.3     3.9     4.6     4.2     3.4     2.9     2.9     2.9     3.2     2.8     3.2     3.2     2.0     2.7     1.5     1.9
  Real disposable personal income......     3.3     3.7     4.2     3.5     2.7     4.1     2.3     2.3     1.3     1.1     3.1     2.6     3.3     3.2     3.4     3.3

  Price indexes:
    Gross domestic purchases...........     2.3     2.2     2.2     3.1     3.3     3.7     3.5     3.4     3.8     3.8     3.6     3.8     3.3     2.4     2.6     2.5
    Gross domestic purchases excluding
     food and energy...................     1.9     1.9     2.1     2.7     2.9     3.1     3.2     3.0     3.0     3.1     2.9     3.1     3.0     2.8     2.8     2.3
    GDP................................     2.2     2.2     2.3     2.9     3.0     3.2     3.3     3.0     3.3     3.4     3.2     3.5     3.2     2.7     2.9     2.7
    GDP excluding food and energy......     1.9     1.9     2.1     2.7     2.9     3.2     3.3     3.1     3.2     3.3     3.1     3.3     3.2     2.9     2.9     2.5
    PCE................................     1.9     1.9     2.0     2.8     2.7     3.1     2.8     2.6     3.2     3.2     3.1     3.3     2.9     1.9     2.3     2.3
    PCE excluding food and energy......     1.3     1.4     1.8     2.1     2.1     2.2     2.3     2.1     2.1     2.2     2.0     2.2     2.4     2.3     2.4     2.0
    Market-based PCE\1\................     1.8     1.6     1.6     2.4     2.3     2.8     2.4     2.4     3.1     3.0     2.9     3.2     2.7     1.6     2.2     2.2
    Market-based PCE excluding food
     and energy\1\.....................     1.1     1.0     1.3     1.5     1.4     1.6     1.8     1.7     1.7     1.7     1.6     1.9     2.1     2.0     2.2     1.8
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the first
quarter of 2007.
  1. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.

                     Table 9.--Relation of Gross Domestic Product, Gross National Product, and National Income
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2004       2005       2006      II 06     III 06      IV 06       I 07r     II 07r
-----------------------------------------------------------------------------------------------------------------------------------
Gross domestic product.....................   11,685.9   12,433.9   13,194.7   13,155.0   13,266.9   13,392.3   13,551.9   13,774.7

Plus: Income receipts from the rest of the
 world.....................................      437.5      544.1      691.4      688.9      709.7      733.8      752.2      801.0
Less: Income payments to the rest of the
 world.....................................      361.3      475.6      633.4      625.0      664.7      673.7      689.0      736.6

Equals: Gross national product.............   11,762.1   12,502.4   13,252.7   13,218.9   13,311.9   13,452.4   13,615.1   13,839.1

Less: Consumption of fixed capital.........    1,436.1    1,609.5    1,615.2    1,602.8    1,628.8    1,654.4    1,670.9    1,685.5
Less: Statistical discrepancy..............       19.1        5.4      -18.1       -2.6       -2.5      -46.6      -66.3      -81.6

Equals: National income....................   10,306.8   10,887.6   11,655.6   11,618.7   11,685.6   11,844.6   12,010.5   12,235.3
  Compensation of employees................    6,656.4    7,029.6    7,448.3    7,371.9    7,442.5    7,649.9    7,764.9    7,875.4
    Wage and salary accruals...............    5,379.5    5,672.9    6,025.7    5,958.4    6,015.8    6,203.0    6,294.4    6,389.1
    Supplements to wages and salaries......    1,276.9    1,356.8    1,422.6    1,413.5    1,426.7    1,446.9    1,470.5    1,486.3
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      911.6      969.9    1,006.7    1,013.5    1,003.6    1,009.8    1,027.4    1,030.1
  Rental income of persons with capital
   consumption adjustment..................      118.4       42.9       54.5       55.4       52.9       50.9       53.2       61.1
  Corporate profits with inventory
   valuation and capital consumption
   adjustments.............................    1,231.2    1,372.8    1,553.7    1,575.5    1,592.5    1,531.2    1,547.7    1,646.0
  Net interest and miscellaneous payments..      491.2      558.0      598.5      611.0      594.2      596.0      599.6      590.3
  Taxes on production and imports less
   subsidies...............................      819.2      863.1      917.6      916.2      922.9      931.1      943.8      955.0
  Business current transfer payments.......       83.0       66.5       90.2       88.6       91.4       91.8       91.8       92.5
  Current surplus of government
   enterprises.............................       -4.2      -15.1      -13.9      -13.4      -14.5      -16.0      -17.8      -15.1

Addendum:
  Gross domestic income....................   11,666.8   12,428.6   13,212.8   13,157.5   13,269.4   13,438.9   13,618.2   13,856.3
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the first
quarter of 2007.

                                          Table 10.--Personal Income and Its Disposition
                                                       [Billions of dollars]
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2004       2005       2006      II 06     III 06      IV 06       I 07r     II 07r
-----------------------------------------------------------------------------------------------------------------------------------
Personal income\1\.........................    9,727.2   10,301.1   10,983.4   10,915.5   11,030.9   11,200.2   11,469.2   11,604.9

  Compensation of employees, received......    6,671.4    7,024.6    7,440.8    7,371.9    7,442.5    7,599.9    7,764.9    7,850.4
    Wage and salary disbursements..........    5,394.5    5,667.9    6,018.2    5,958.4    6,015.8    6,153.0    6,294.4    6,364.1
    Supplements to wages and salaries......    1,276.9    1,356.8    1,422.6    1,413.5    1,426.7    1,446.9    1,470.5    1,486.3
  Proprietors' income with inventory
   valuation and capital consumption
   adjustments.............................      911.6      969.9    1,006.7    1,013.5    1,003.6    1,009.8    1,027.4    1,030.1
    Farm...................................       37.3       30.8       19.4       14.6       18.1       23.9       29.1       24.1
    Nonfarm................................      874.3      939.1      987.4      998.9      985.5      985.8      998.3    1,006.0
  Rental income of persons with capital
   consumption adjustment..................      118.4       42.9       54.5       55.4       52.9       50.9       53.2       61.1
  Personal income receipts on assets.......    1,432.1    1,617.8    1,796.5    1,795.7    1,828.1    1,836.6    1,882.9    1,924.7
    Personal interest income...............      895.1    1,018.9    1,100.2    1,112.7    1,119.7    1,102.8    1,126.1    1,143.1
    Personal dividend income...............      537.0      598.9      696.3      682.9      708.4      733.8      756.8      781.6
  Personal current transfer receipts.......    1,422.5    1,520.7    1,612.5    1,599.1    1,630.6    1,647.7    1,710.7    1,717.0

  Less: Contributions for government
   social insurance........................      828.8      874.8      927.6      920.1      926.8      944.6      969.8      978.4

Less: Personal current taxes...............    1,046.3    1,209.1    1,354.3    1,342.6    1,355.2    1,401.0    1,454.7    1,483.0

Equals: Disposable personal income.........    8,680.9    9,092.0    9,629.1    9,572.9    9,675.8    9,799.2   10,014.5   10,121.9

Less: Personal outlays.....................    8,499.2    9,047.4    9,590.3    9,542.9    9,677.1    9,757.2    9,917.5   10,069.0

Equals: Personal saving....................      181.7       44.6       38.8       30.0       -1.4       42.0       97.0       52.8

  Personal saving as a percentage of
   disposable personal income..............        2.1         .5         .4         .3         .0         .4        1.0         .5

Addendum:
  Disposable personal income, billions of
   chained (2000) dollars\2\...............    8,008.9    8,147.9    8,396.9    8,348.6    8,384.5    8,510.7    8,623.9    8,626.5
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the first
quarter of 2007.
  1. Personal income is also equal to national income less corporate
profits with inventory valuation and capital consumption adjustments,
taxes on production and imports less subsidies, contributions for
government social insurance, net interest and miscellaneous payments,
business current transfer payments, current surplus of government
enterprises, and wage accruals less disbursements, plus personal
income receipts on assets, and personal current transfer receipts.
  2. Equals disposable personal income deflated by the implicit price
deflator for personal consumption expenditures.

                                                   Table 11.--Corporate Profits: Level and Percent Change
-------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           Billions of dollars                                 Percent change from preceding period
                                     ----------------------------------------------------------------  ------------------------------------------------------
                                                                       Seasonally adjusted                                       Quarterly        Quarter one
                                                                         at annual rates                                           rates             year ago
                                                              ---------------------------------------                 ------------------------------- -------
                                         2004    2005    2006   II 06  III 06   IV 06    I 07   II 07    2005    2006  III 06   IV 06    I 07   II 07   II 07
-------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate profits with inventory
 valuation and capital consumption
 adjustments......................... 1,231.2 1,372.8 1,553.7 1,575.5 1,592.5 1,531.2 1,547.7 1,646.0    11.5    13.2     1.1    -3.8     1.1     6.4     4.5

Less: Taxes on corporate income......   307.4   392.9   453.9   460.0   470.4   452.4   452.5   491.9    27.8    15.5     2.3    -3.8      .0     8.7     6.9

Equals: Profits after tax with
 inventory valuation and capital
 consumption adjustments.............   923.9   979.9 1,099.8 1,115.6 1,122.1 1,078.8 1,095.2 1,154.1     6.1    12.2      .6    -3.9     1.5     5.4     3.5
  Net dividends......................   539.5   601.4   698.9   685.6   711.1   736.4   759.4   784.1    11.5    16.2     3.7     3.6     3.1     3.3    14.4
  Undistributed profits with
   inventory valuation and capital
   consumption adjustments...........   384.4   378.6   400.9   430.0   411.1   342.4   335.8   370.0    -1.5     5.9    -4.4   -16.7    -1.9    10.2   -14.0

Cash flow:
  Net cash flow with inventory
   valuation and capital consumption
   adjustments....................... 1,181.5 1,235.4 1,290.9 1,314.2 1,308.3 1,251.3 1,251.5 1,292.1     4.6     4.5     -.4    -4.4      .0     3.2    -1.7
    Undistributed profits with
     inventory valuation and capital
     consumption adjustments.........   384.4   378.6   400.9   430.0   411.1   342.4   335.8   370.0    -1.5     5.9    -4.4   -16.7    -1.9    10.2   -14.0
    Consumption of fixed capital.....   797.1   856.8   890.0   884.2   897.3   908.9   915.7   922.1     7.5     3.9     1.5     1.3      .7      .7     4.3

  Less: Inventory valuation
   adjustment........................   -43.1   -36.2   -36.3   -57.7   -35.2   -21.0   -40.2   -54.1   .....   .....   .....   .....   .....   .....   .....

  Equals: Net cash flow.............. 1,224.6 1,271.6 1,327.2 1,371.9 1,343.6 1,272.2 1,291.7 1,346.2     3.8     4.4    -2.1    -5.3     1.5     4.2    -1.9

Addenda:
  Profits before tax (without
   inventory valuation and capital
   consumption adjustments).......... 1,204.7 1,579.6 1,805.8 1,842.3 1,851.4 1,789.2 1,815.8 1,935.8    31.1    14.3      .5    -3.4     1.5     6.6     5.1
  Profits after tax (without
   inventory valuation and capital
   consumption adjustments)..........   897.3 1,186.7 1,351.9 1,382.4 1,381.0 1,336.8 1,363.3 1,443.9    32.2    13.9     -.1    -3.2     2.0     5.9     4.5
  Inventory valuation adjustment.....   -43.1   -36.2   -36.3   -57.7   -35.2   -21.0   -40.2   -54.1   .....   .....   .....   .....   .....   .....   .....
  Capital consumption adjustment.....    69.7  -170.6  -215.8  -209.1  -223.7  -237.0  -227.9  -235.7   .....   .....   .....   .....   .....   .....   .....
-------------------------------------------------------------------------------------------------------------------------------------------------------------

                                      Table 12.--Corporate Profits by Industry: Level and Change From Preceding Period
                                                                    [Billions of dollars]
-------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           Level                                       Change from preceding period
                                             ----------------------------------------------------------------  ----------------------------------------------
                                                                        Seasonally adjusted at annual rates
                                                                      ---------------------------------------  ----------------------------------------------
                                                 2004    2005    2006   II 06  III 06   IV 06    I 07   II 07    2005    2006  III 06   IV 06    I 07   II 07
-------------------------------------------------------------------------------------------------------------------------------------------------------------
    Corporate profits with inventory
     valuation and capital consumption
     adjustments............................. 1,231.2 1,372.8 1,553.7 1,575.5 1,592.5 1,531.2 1,547.7 1,646.0   141.6   180.9    17.0   -61.3    16.5    98.3

Domestic industries.......................... 1,037.8 1,154.6 1,296.4 1,316.1 1,342.8 1,253.5 1,249.8 1,331.8   116.8   141.8    26.7   -89.3    -3.7    82.0
  Financial..................................   356.2   405.5   482.2   498.6   476.3   495.6   468.7   525.4    49.3    76.7   -22.3    19.3   -26.9    56.7
  Nonfinancial...............................   681.6   749.1   814.3   817.5   866.4   757.9   781.1   806.4    67.5    65.2    48.9  -108.5    23.2    25.3

Rest of the world............................   193.4   218.2   257.3   259.4   249.8   277.8   297.9   314.1    24.8    39.1    -9.6    28.0    20.1    16.2
  Receipts from the rest of the world........   316.4   358.7   419.8   420.6   425.9   438.7   448.7   474.7    42.3    61.1     5.3    12.8    10.0    26.0
  Less: Payments to the rest of the world....   123.0   140.6   162.5   161.2   176.1   160.9   150.8   160.6    17.6    21.9    14.9   -15.2   -10.1     9.8

    Corporate profits with inventory
     valuation adjustment.................... 1,161.6 1,543.4 1,769.5 1,784.6 1,816.2 1,768.2 1,775.6 1,881.7   381.8   226.1    31.6   -48.0     7.4   106.1

Domestic industries..........................   968.2 1,325.2 1,512.2 1,525.2 1,566.4 1,490.4 1,477.7 1,567.5   357.0   187.0    41.2   -76.0   -12.7    89.8
  Financial..................................   348.9   423.6   505.3   521.0   500.3   521.0   493.0   550.6    74.7    81.7   -20.7    20.7   -28.0    57.6
    Federal Reserve banks....................    20.0    26.6    33.8    33.8    35.9    34.8    38.5    39.2     6.6     7.2     2.1    -1.1     3.7      .7
    Other financial..........................   328.9   397.1   471.4   487.3   464.4   486.2   454.5   511.4    68.2    74.3   -22.9    21.8   -31.7    56.9

  Nonfinancial...............................   619.3   901.6 1,006.9 1,004.2 1,066.1   969.5   984.7 1,016.9   282.3   105.3    61.9   -96.6    15.2    32.2
    Utilities................................    18.6    28.4    35.7    35.3    37.8    37.8    36.4   .....     9.8     7.3     2.5      .0    -1.4   .....
    Manufacturing............................   152.7   251.2   293.4   298.0   319.5   280.2   298.9   .....    98.5    42.2    21.5   -39.3    18.7   .....
      Durable goods..........................    38.3    85.1    95.9    81.8   101.8   107.2   113.0   .....    46.8    10.8    20.0     5.4     5.8   .....
        Fabricated metal products............    11.9    17.3    20.3    18.9    19.3    22.5    23.3   .....     5.4     3.0      .4     3.2      .8   .....
        Machinery............................     7.2    16.0    19.3    19.5    18.3    18.7    21.8   .....     8.8     3.3    -1.2      .4     3.1   .....
        Computer and electronic products.....    -4.9    10.1     7.7     7.8     7.1     6.2     9.0   .....    15.0    -2.4     -.7     -.9     2.8   .....
        Electrical equipment, appliances,
         and components......................      .3    -3.7    -1.9    -2.9    -1.6      .2     1.3   .....    -4.0     1.8     1.3     1.8     1.1   .....
        Motor vehicles, bodies and trailers,
         and parts...........................    -7.6      .1    -1.1    -2.8    -1.4     1.3     4.6   .....     7.7    -1.2     1.4     2.7     3.3   .....
        Other durable goods..................    31.3    45.3    51.7    41.4    60.1    58.3    52.9   .....    14.0     6.4    18.7    -1.8    -5.4   .....

      Nondurable goods.......................   114.5   166.0   197.5   216.1   217.6   173.0   185.9   .....    51.5    31.5     1.5   -44.6    12.9   .....
        Food and beverage and tobacco
         products............................    24.2    27.8    29.2    27.9    30.4    31.8    30.1   .....     3.6     1.4     2.5     1.4    -1.7   .....
        Petroleum and coal products..........    48.9    89.8   110.4   125.6   128.7    85.2    94.9   .....    40.9    20.6     3.1   -43.5     9.7   .....
        Chemical products....................    25.4    29.7    37.6    41.5    40.6    31.7    41.0   .....     4.3     7.9     -.9    -8.9     9.3   .....
        Other nondurable goods...............    16.0    18.7    20.3    21.2    17.9    24.3    20.0   .....     2.7     1.6    -3.3     6.4    -4.3   .....

    Wholesale trade..........................    79.2    95.2    97.0    85.4   118.1    91.1    97.8   .....    16.0     1.8    32.7   -27.0     6.7   .....
    Retail trade.............................    91.1   114.4   124.5   119.6   126.9   132.1   134.3   .....    23.3    10.1     7.3     5.2     2.2   .....
    Transportation and warehousing...........    14.1    28.2    41.9    45.9    47.7    40.0    39.1   .....    14.1    13.7     1.8    -7.7     -.9   .....
    Information..............................    43.9    74.8    85.4    83.2    81.5    91.5   109.5   .....    30.9    10.6    -1.7    10.0    18.0   .....
    Other nonfinancial.......................   219.7   309.5   329.0   336.7   334.5   296.7   268.7   .....    89.8    19.5    -2.2   -37.8   -28.0   .....

Rest of the world............................   193.4   218.2   257.3   259.4   249.8   277.8   297.9   314.1    24.8    39.1    -9.6    28.0    20.1    16.2
-------------------------------------------------------------------------------------------------------------------------------------------------------------
  Note.--Estimates in this table are based on the 1997 North
American Industry Classification System (NAICS).

                             Table 13.--Gross Value Added of Nonfinancial Domestic Corporate Business
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                         Seasonally adjusted at annual rates
                                                                                ---------------------------------------------------
                                                  2004       2005       2006      II 06     III 06      IV 06       I 07r     II 07
-----------------------------------------------------------------------------------------------------------------------------------
                                                                             Billions of dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business....................    5,956.4    6,319.4    6,689.4    6,639.8    6,739.1    6,784.5    6,865.0    6,967.7

Consumption of fixed capital...............      687.4      742.3      772.8      767.6      779.5      789.8      795.7      801.2

Net value added............................    5,269.0    5,577.1    5,916.6    5,872.2    5,959.6    5,994.7    6,069.3    6,166.5

  Compensation of employees................    3,865.2    4,078.5    4,316.7    4,269.2    4,306.4    4,442.1    4,494.1    4,557.4
    Wage and salary accruals...............    3,159.7    3,334.8    3,543.8    3,501.0    3,532.3    3,657.5    3,695.5    3,753.0
    Supplements to wages and salaries......      705.5      743.6      772.9      768.2      774.1      784.6      798.6      804.5
  Taxes on production and imports less
   subsidies...............................      523.9      558.7      584.9      583.9      587.3      592.1      599.7      606.5
  Net operating surplus....................      879.9      940.0    1,015.0    1,019.1    1,065.9      960.5      975.6    1,002.6
    Net interest and miscellaneous
     payments..............................      138.9      132.5      133.2      135.0      132.3      133.6      136.0      136.9
    Business current transfer payments.....       59.3       58.3       67.6       66.7       67.2       68.9       58.5       59.2
    Corporate profits with inventory
     valuation and capital consumption
     adjustments...........................      681.6      749.1      814.3      817.5      866.4      757.9      781.1      806.4
      Taxes on corporate income............      191.0      263.4      288.2      288.8      300.6      285.2      298.6      322.2
      Profits after tax with inventory
       valuation and capital consumption
       adjustments.........................      490.7      485.7      526.0      528.6      565.8      472.7      482.5      484.2
        Net dividends......................      367.0      199.2      448.6      405.2      463.2      532.2      483.7      491.0
        Undistributed profits with
         inventory valuation and capital
         consumption adjustments...........      123.7      286.5       77.4      123.5      102.6      -59.5       -1.2       -6.9

Addenda:
  Profits before tax (without inventory
   valuation and capital consumption
   adjustments)............................      662.4      937.8    1,043.2    1,061.9    1,101.4      990.4    1,024.9    1,071.1
  Profits after tax (without inventory
   valuation and capital consumption
   adjustments)............................      471.4      674.4      755.0      773.0      800.7      705.3      726.3      748.8
  Inventory valuation adjustment...........      -43.1      -36.2      -36.3      -57.7      -35.2      -21.0      -40.2      -54.1
  Capital consumption adjustment...........       62.4     -152.5     -192.7     -186.7     -199.7     -211.6     -203.6     -210.5
                                           ----------------------------------------------------------------------------------------
                                                                      Billions of chained (2000) dollars
                                           ----------------------------------------------------------------------------------------

    Gross value added of nonfinancial
     corporate business\1\.................    5,652.3    5,806.6    6,012.1    5,965.7    6,039.7    6,076.2    6,089.6    6,158.1

Consumption of fixed capital\2\............      651.4      682.4      686.9      683.1      690.4      698.1      701.7      705.2
Net value added\3\.........................    5,001.0    5,124.2    5,325.3    5,282.6    5,349.2    5,378.1    5,387.9    5,452.9
                                           ----------------------------------------------------------------------------------------
                                                                    Dollars; quarters seasonally adjusted
                                           ----------------------------------------------------------------------------------------
Price, costs, and profits per unit of real
 gross value added of nonfinancial
 corporate business:

  Price per unit of real gross value added
   of nonfinancial corporate business\4\...      1.054      1.088      1.113      1.113      1.116      1.117      1.127      1.131

  Compensation of employees (unit labor
   cost)...................................       .684       .702       .718       .716       .713       .731       .738       .740

  Unit nonlabor cost.......................       .250       .257       .260       .261       .259       .261       .261       .260
    Consumption of fixed capital...........       .122       .128       .129       .129       .129       .130       .131       .130
    Taxes on production and imports less
     subsidies plus business current
     transfer payments.....................       .103       .106       .109       .109       .108       .109       .108       .108
    Net interest and miscellaneous payments       .025       .023       .022       .023       .022       .022       .022       .022

  Corporate profits with inventory valuation
   and capital consumption adjustments (unit
   profits from current production)........       .121       .129       .135       .137       .143       .125       .128       .131
    Taxes on corporate income..............       .034       .045       .048       .048       .050       .047       .049       .052
    Profits after tax with inventory
     valuation and capital consumption
     adjustments...........................       .087       .084       .087       .089       .094       .078       .079       .079
-----------------------------------------------------------------------------------------------------------------------------------
  r Revised.  Revisions include changes to series affected by the
introduction of revised wage and salary estimates for the first
quarter of 2007.
  1. The current-dollar gross value added is deflated using the
gross value added chain-type price index for nonfinancial industries
from the GDP-by-industry accounts.  For periods when this price index
is not available, the chain-type price index for GDP goods and
structures is used.
  2. Chained-dollar consumption of fixed capital of nonfinancial
corporate business is calculated as the product of the chain-type
quantity index and the 2000 current-dollar value of the corresponding
series, divided by 100.
  3. Chained-dollar net value added of nonfinancial corporate
business is the difference between the gross value added and the
consumption of fixed capital.
  4. The deflator for gross value added of nonfinancial corporate
business divided by 100.
Note.--Estimates in this table are based on the 1997 North
American Industry Classification System (NAICS).

                      Appendix Table A.--Real Gross Domestic Product and Related Aggregates and Price Indexes: Percent Change From Preceding Period
                                                             [Quarters seasonally adjusted at annual rates]
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                       2004   2005   2006 III 03  IV 03   I 04  II 04 III 04  IV 04   I 05  II 05 III 05  IV 05   I 06  II 06 III 06  IV 06   I 07  II 07r
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gross domestic product (GDP) and
 related aggregates:
  GDP...............................    3.6    3.1    2.9    7.5    2.7    3.0    3.5    3.6    2.5    3.1    2.8    4.5    1.2    4.8    2.4    1.1    2.1     .6    4.0

  Goods.............................    4.7    4.3    5.0   16.2    2.5    2.1    3.4    6.6    3.7    4.2    3.9    5.8    1.5    9.6    4.6    3.4    1.1     .2    5.6
  Services..........................    2.8    2.3    2.3    1.9    2.8    3.8    2.2    2.4    2.4    2.3    1.4    4.4    1.0    2.4    2.0    2.0    4.4    2.1    3.2
  Structures........................    5.2    3.4    -.1   14.1    2.2    1.0   11.5    1.3    -.3    4.0    7.3    1.2    1.2    4.3   -1.4   -9.9   -7.0   -6.2    3.4

  Motor vehicle output..............    4.0    4.2   -1.3    8.9   -6.5    8.8   -6.1   29.0   -9.6    5.4    4.7   30.6  -30.5   17.0  -10.9   15.1  -21.6    6.2     .8
  GDP excuding motor vehicle
   output...........................    3.6    3.0    3.0    7.4    3.0    2.8    3.8    2.8    3.0    3.0    2.7    3.6    2.5    4.4    2.9     .6    2.9     .4    4.1

  Final sales of computers\1\.......    5.4   35.1   19.4   90.4   20.0  -31.0   -6.6   19.8   50.1   39.5   51.7   21.8   34.2    7.3   20.7    5.1   27.0   -1.3   36.4
  GDP excluding final sales of
   computers........................    3.6    2.9    2.8    7.0    2.5    3.3    3.6    3.5    2.3    2.8    2.5    4.3    1.0    4.8    2.3    1.0    1.9     .6    3.8

  Farm gross value added\2\.........    8.1    5.9     .6  -34.7  -36.1  149.5  -30.8   18.9   40.8  -10.9   14.0   -3.0    6.0   -8.9   17.5  -12.4     .8  -12.5  -27.8

  Nonfarm business gross value
   added\3\.........................    4.1    3.6    3.2   11.0    1.6    2.6    5.0    3.8    2.6    3.9    3.2    5.6     .9    5.7    2.4     .8    2.6     .3    5.0

Price indexes:
  GDP...............................    2.9    3.2    3.2    2.1    2.2    3.7    3.8    2.3    3.2    3.9    2.6    3.5    3.5    3.4    3.5    2.4    1.7    4.2    2.7
  GDP excluding food and energy.....    2.7    3.2    3.1    1.7    2.1    3.5    3.4    2.8    3.1    4.1    2.6    2.9    3.5    3.4    3.2    2.6    2.4    3.3    1.6
  GDP excluding final sales of
   computers........................    3.0    3.4    3.3    2.2    2.3    3.8    3.8    2.4    3.4    4.1    2.7    3.6    3.7    3.5    3.6    2.5    1.8    4.3    2.8

  Gross domestic purchases..........    3.1    3.7    3.3    2.2    1.9    4.3    4.2    2.8    3.6    3.6    3.5    4.6    3.7    2.7    4.2    2.5     .1    3.8    3.8
  Gross domestic purchases excluding
   food and energy..................    2.7    3.1    2.9    1.8    2.0    3.5    3.4    2.6    2.8    4.0    2.6    2.7    3.2    3.2    3.2    2.5    2.3    3.1    1.6
  Gross domestic purchases excluding
   final sales of computers to
   domestic purchasers..............    3.2    3.9    3.5    2.4    2.0    4.4    4.3    2.9    3.9    3.8    3.7    4.8    3.9    2.9    4.5    2.7     .2    3.9    4.0

  Personal consumption expenditures
   (PCE)............................    2.6    2.9    2.8    2.4    1.5    3.5    3.8    2.0    3.0    2.2    3.4    4.3    2.8    1.7    4.3    2.6    -.9    3.5    4.2
  Personal consumption expenditures
   excluding food and energy........    2.1    2.2    2.2    1.8    1.6    2.4    2.7    1.7    2.1    2.6    2.1    1.7    2.4    2.0    2.9    2.3    1.9    2.4    1.3
  Market-based PCE\4\...............    2.3    2.7    2.6    2.2     .9    3.2    3.4    1.5    2.9    1.9    3.1    4.3    2.6    1.5    4.3    2.4   -1.6    3.6    4.6
  Market-based PCE excluding food
   and energy\4\....................    1.5    1.7    1.9    1.4     .9    1.8    1.9    1.1    1.8    2.3    1.5    1.2    1.9    1.8    2.6    2.1    1.6    2.4    1.1
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------
  r Revised
  1. Some components of final sales of computers include
computer parts.
  2. Farm output less intermediate goods and services purchased.
  3. Consists of GDP less gross value added of farm, of
households and institutions, and of general government.
  4. This index is a supplemental measure that is based on household
expenditures for which there are observable price measures.  It
excludes most implicit prices (for example, the services furnished
without payment by financial intermediaries) and the expenses of
nonprofit institutions.
  See "Explanatory Note" at the end of the tables.



     Explanatory Note: NIPA Measures of Quantities and Prices


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

     Annual changes in quantities and prices are calculated using a Fisher formula that incorporates
weights from two adjacent years.  (Quarterly changes in quantities and prices are calculated using a
Fisher formula that incorporates weights from two adjacent quarters; quarterly indexes are adjusted for
consistency to the annual indexes before percent changes are calculated.)  For example, the 2005-06
annual percent change in real GDP uses prices for 2005 and 2006 as weights, and the 2005-06 annual
percent change in GDP prices uses quantities for 2005 and 2006 as weights.  These annual changes are
"chained" (multiplied) together to form time series of quantity and price indexes.  Percent changes in
Fisher indexes are not affected by the choice of reference year.  (BEA also publishes a measure of the
price level known as the implicit price deflator (IPD), which is calculated as the ratio of the
current-dollar value to the corresponding chained-dollar value, multiplied by 100.  The values of the IPD
are very close to the values of the corresponding "chain-type" price index.)

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

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

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

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