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Annual revision of the national income and product accounts.

Annual Estimates, 2001-2003 Quarterly Estimates, 2001:I-2004:I

ON July 30, 2004, the Bureau of Economic Analysis (BEA) released revised estimates of the national income and product accounts (NIPAs) for 2001-2003 and for the first quarter of 2004. (1) As is usual in annual NIPA revisions, these estimates incorporate newly available source data that are more complete, more detailed, and otherwise more appropriate than those that were previously incorporated.

Both the revised estimates and the previously published estimates show similar year-to-year growth rates for gross domestic product (GDP) and its major aggregates. However, the revised estimates show changes in the quarter-to-quarter growth rates. Highlights of the revision are the following:

* From 2000 to 2003, real GDP grew at an average annual rate of 1.9 percent, the same as in the previously published estimates. The average annual rate of real GDP growth from the fourth quarter of 2000 to the first quarter of 2004 is also unchanged at 2.5 percent. Revisions to year-to-year growth rates are small, averaging 0.2 percentage point (without regard to sign); revisions to quarter-to-quarter growth rates were moderate, averaging 0.6 percentage point (without regard to sign).

* The 2001 downturn and the subsequent recovery are slightly milder than previously estimated; the differences between the revised estimates and the previously published estimates are small.

* From the fourth quarter of 2000 to the third quarter of 2001, the revised estimates show that real GDP decreased at an annual rate of 0.2 percent; the previously published estimates showed a decrease of 0.7 percent.

* From the third quarter of 2001 to the first quarter of 2004, the revised estimates show that real GDP increased at an average annual rate of 3.3 percent; the previously published estimates showed an average increase of 3.4 percent.

* The quarterly path of the 2001 downturn is also changed (chart 1).

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* In the previously published estimates, real GDP decreased in the third quarter of 2000, peaked in the fourth quarter of 2000, and then decreased in the next three quarters. From its high in the fourth quarter of 2000 to its low in the third quarter of 2001, real GDP declined 0.5 percent (not at an annual rate).

* In the revised estimates, real GDP decreased in the first quarter of 2001, peaked in the second quarter of 2001--to a level higher than that in the fourth quarter of 2000--and it then decreased in the next quarter. From its new high in the second quarter of 2001 to its low in the third quarter, real GDP declined 0.4 percent (not at an annual rate).

* From 2000 to 2003, the average annual rate of growth of real disposable personal income is revised down from 2.7 percent to 2.4 percent.

This annual revision features one notable change in methodology: Contributions to the new Uniformed Services Retiree Health Care Fund on behalf of active-duty military personnel are being treated the same as pension-fund contributions and are included in Federal Government employee compensation. As a result, the price index for Federal Government compensation is raised.

In this article, the impact of the revisions on key NIPA measures of economic activity is discussed, and a summary of the revisions and the major source data underlying them are provided. In addition, two changes in the methodology that is used to prepare the estimates are described. Appendix A shows the revised annual estimates and the revisions for the seven summary accounts of the NIPAs in current dollars. An extensive set of tables presenting revised monthly, quarterly, and annual NIPA estimates and the "advance" estimates for the second quarter of 2004 are available in "National Income and Product Accounts Tables" in this issue. In addition, historical estimates are presented in "GDP and Other Major NIPA Series, 1929-2004:II"

Impact of the Revisions

According to the revised estimates, the average annual rate of growth of real GDP from the fourth quarter of 2000 to the first quarter of 2004 is unchanged at 2.5 percent (table 1). In the revised estimates, equipment and software, Federal Government spending, personal consumption expenditures (PCE) for services, PCE for nondurable goods, and exports of goods and services are weaker than in the previously published estimates; state and local government spending, PCE for durable goods, the change in private inventories, residential investment, imports of services, and nonresidential structures are stronger; imports of goods is little revised. (2)

In the revised estimates, the 2001 downturn is milder than previously estimated. In the previously published estimates, GDP declined in the first three quarters of 2001. In the revised estimates, for the five quarters beginning with the second quarter of 2000, GDP falls in the third quarter of 2000, increases in the fourth quarter, falls again in the first quarter of 2001, increases in the second quarter--to a level higher than in the fourth quarter of 2000--and then decreases again in the third quarter (the estimates for 2000 are not revised in this annual revision). As a result of the revision, the date of the cyclical peak for GDP has been changed from the fourth quarter of 2000 to the second quarter of 2001, and the interval from its peak to its trough is shortened to one quarter (from the second quarter of 2001 to the third quarter). However, for the four quarters leading up to the peak, from the second quarter of 2000 to the second quarter of 2001, GDP increases slowly at a rate of 0.6 percent.

The decline in real GDP from its peak in the second quarter of 2001 to its trough in the third quarter is 0.4 percent (not at an annual rate). In the previously published estimates, the total decline from its old peak in the fourth quarter of 2000 to the trough in the third quarter of 2001 was 0.5 percent (not at an annual rate). (In the revised estimates, the total decline in real GDP from the fourth quarter of 2000 to the third quarter of 2001 is 0.2 percent, not at an annual rate).

In the revised estimates, the cyclical recovery since 2001 is also slightly milder than previously estimated. From the third quarter of 2001 to the first quarter of 2004, the revised estimates show that real GDP increases at an average annual rate of 3.3 percent; the previously published estimates showed an average increase of 3.4 percent.

For 2001, the percent change in real GDP from the preceding year is revised up from 0.5 percent to 0.8 percent (chart 2). For 2002, the percent change is revised down from 2.2 percent to 1.9 percent. For 2003, the percent change is revised down from 3.1 percent to 3.0 percent.

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From fourth quarter to fourth quarter, the percent change in real GDP is revised up from 0.0 percent to 0.2 percent for 2001, is revised down from 2.8 percent to 2.3 percent for 2002, and is revised up from 4.3 percent to 4.4 percent for 2003.

The revised estimates of prices show about the same rate of increase as that shown by the previously published estimates. From the fourth quarter of 2000 to the first quarter of 2004, the average annual rate of increase in the price index for gross domestic purchases is revised up 0.1 percentage point to 1.9 percent, and the average annual rate of increase in the GDP price index is revised up 0.1 percentage point to 2.0 percent (table 2). The percent change from the preceding year for the price index for gross domestic purchases is unrevised at 2.0 percent for 2001, is revised up 0.1 percentage point to 1.5 percent for 2002, and is revised up 0.1 percentage point to 2.0 percent for 2003 (chart 2).

Summary of the Revisions

In general, the annual revisions to real GDP reflect four factors: (1) Revisions to the current-dollar components of GDP for which chained-dollar estimates are prepared by deflation, (2) revisions to the prices used in deflation, (3) revisions to the quantities used to estimate components of real GDP by extrapolation or direct valuation, and (4) revisions resulting from the use of revised and updated weights in the calculation of real GDP. (3) In this year's annual revision, the first factor accounted for most of the revisions.

Annual estimates of real GDP

The annual percent change in real GDP is revised up from 0.5 percent to 0.8 percent for 2001, is revised down from 2.2 percent to 1.9 percent for 2002, and is revised down from 3.1 percent to 3.0 percent for 2003 (table 3).

For 2001, the largest contributor to the upward revision to real GDP growth is state and local government spending, but most of the other components also contributed. For 2002, the largest contributors to the downward revision to real GDP are fixed investment in equipment and software, PCE for services, and PCE for nondurable goods; the contributions of these components are partly offset by an upward revision to state and local government spending. For 2003, the slight downward revision to real GDP is attributable to generally small and mostly offsetting revisions to many components.

Revisions to the components of real GDP. The annual percent change in real PCE is unrevised at 2.5 percent for 2001, is revised down 0.3 percentage point to 3.1 percent for 2002, and is revised up 0.2 percentage point to 3.3 percent for 2003 (table 4). For 2002, the revision reflects downward revisions to PCE for services (mainly to PCE for "other" services) and to PCE for nondurable goods (reflecting widespread downward revisions among the subcomponents of nondurable goods). For 2003, the revision primarily reflects an upward revision to PCE for services (which is more than accounted for by PCE for "other" services).

The change in nonresidential fixed investment is revised up 0.3 percentage point to -4.2 percent for 2001, is revised down 1.7 percentage points to 8.9 percent for 2002, and is revised up 0.3 percentage point to 3.3 percent for 2003. For 2001, the revision is mostly accounted for by an upward revision to equipment and software (mainly to software). For 2002, the revision to nonresidential fixed investment is more than accounted for by a downward revision to equipment and software (mainly to information processing equipment and software). For 2003, the revision reflects an upward revision to equipment and software that is partly offset by a downward revision to nonresidential structures. Within equipment and software, upward revisions to transportation equipment and industrial equipment are partly offset by a downward revision to information processing equipment and software. Within nonresidential structures, the downward revision is more than accounted for by power and communication structures.

The change in residential fixed investment is unrevised at 0.4 percent for 2001, is revised down 0.1 percentage point to 4.8 percent for 2002, and is revised up 1.3 percentage points to 8.8 percent for 2003. For 2003, the revision is mostly accounted for by single-family structures.

The change in private inventories is revised up $4.3 billion (in chained 2000 dollars) for 2001, is revised up $6.0 billion for 2002, and is revised down $0.1 billion for 2003. Nonfarm inventory investment more than accounted for the revision for 2001, and it accounted for most of the revision for 2002.

The change in exports of goods and services is revised down 0.2 percentage point to -5.4 percent for 2001, is revised up 0.1 percentage point to -2.3 percent for 2002, and is revised down 0.1 percentage point to 1.9 percent for 2003. For 2001, the downward revision reflects a downward revision to exports of services. For 2002, an upward revision to exports of services is partly offset by a downward revision to exports of goods. For 2003, a downward revision to exports of services is partly offset by an upward revision to exports of goods.

The change in imports of goods and services is revised down 0.1 percentage point to -2.7 percent for 2001, is revised up 0.1 percentage point to 3.4 percent for 2002, and is revised up 0.4 percentage point to 4.4 percent for 2003. For 2001, the downward revision is more than accounted for by a downward revision to imports of services. For 2002, the upward revision reflects an upward revision to imports of services that is partly offset by a downward revision to imports of goods. For 2003, the upward revision is more than accounted for by an upward revision to imports of services.

The change in government spending is revised up 0.6 percentage point to 3.4 percent for 2001, is revised up 0.6 percentage point to 4.4 percent for 2002, and is revised down 0.5 percentage point to 2.8 percent for 2003. For 2001, an upward revision to state and local government spending accounted for most of the revision. For 2002, an upward revision to state and local government spending was partly offset by a downward revision to Federal defense consumption expenditures. For 2003, downward revisions to Federal defense and nondefense consumption expenditures accounted for most of the downward revision.

Quarterly estimates

The revisions to the quarterly (and monthly) NIPA estimates reflect the revisions to the annual estimates that result from the incorporation of newly available annual source data, the incorporation of new and revised monthly and quarterly source data (including the updating of the seasonal factors that are used to indicate quarterly patterns), and the introduction of changes in methodology (see "Changes in Methodology").

For real GDP, the revisions to the 13 quarterly percent changes (at annual rates) average 0.6 percentage point (without regard to sign). (In the annual NIPA revisions since 1979, the revisions to the quarterly estimates have averaged 0.7 percentage point.)

The largest upward revision to the percent changes in real GDP is 1.8 percentage points, from -0.6 percent to +1.2 percent, for the second quarter of 2001 (table 5 and chart 3). The largest contributors to the upward revision are change in nonfarm private inventories and imports of goods.

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The largest downward revision to the percent changes in real GDP is 1.3 percentage points, from 4.7 percent to 3.4 percent, for the first quarter of 2002. The largest contributors to the downward revision are PCE for durable goods, equipment and software investment, PCE for nondurable goods, and imports of goods.

In general, the quarter-to-quarter pattern of changes in the revised estimates of gross domestic purchases prices is not markedly different from that of the previously published estimates. The revisions to the 13 quarterly percent changes (at annual rates) average 0.1 percentage point (without regard to sign). The largest upward revision is 0.3 percentage point, to 3.7 percent, for the first quarter of 2003; prices of PCE for services accounted for most of the revision. The largest downward revisions are 0.1 percentage point for the third quarter of 2003 and for the first quarter of 2004.

Annual current-dollar estimates

Table 6 summarizes the current-dollar revisions to major NIPA components. It shows the subcomponent series for which revisions were $4.0 billion or more (absolute value) for any of the years covered by this annual revision, and it lists the major source data that underlie the revised estimates. Note that the incorporation of new and revised source data for a year usually results in a revision to the level of an estimate not only for that year but also for subsequent years.

The annual revision incorporated data from the following Federal statistical sources: Preliminary results from the 2002 Economic Census; Census Bureau annual surveys of merchant wholesale trade and of retail trade for 2002 and revised monthly indicators of merchant wholesale trade and of retail trade for 2001-2003; Census Bureau annual surveys of services for 2002 (revised) and 2003 (preliminary) and annual surveys of state and local governments for 2001 (revised) and 2002 (preliminary); Census Bureau monthly surveys of construction put in place for 2001-2003 (revised); Federal Government budget data for fiscal years 2003 and 2004; Internal Revenue Service tabulations of tax returns for corporations for 2001 (revised) and 2002 (preliminary) and for sole proprietorships and partnerships for 2002; Bureau of Labor Statistics quarterly census of employment and wages for 2003 (revised); Department of Agriculture farm statistics for 2001-2003; and BEA's international transactions accounts for 2001-2003 (revised).

Details about the sources of the major revisions to the NIPA components follow on page 18.

Domestic income and product

Gross domestic product (GDP). The level of current-dollar GDP is revised up $27.2 billion, or 0.3 percent, for 2001, it is revised up $6.2 billion, or 0.1 percent, for 2002, and it is revised up $16.1 billion, or 0.1 percent, for 2003.

By major component, for 2001, the revision primarily reflects upward revisions to state and local government spending, to PCE for goods, to PCE for services, and to change in private inventories. For 2002, upward revisions to state and local government spending, to change in private inventories, and to nonresidential structures are partly offset by downward revisions to equipment and software investment and to PCE for services. For 2003, upward revisions to state and local government spending and to residential fixed investment are partly offset by downward revisions to equipment and software investment and to Federal Government spending.

Gross domestic income (GDI) and the statistical discrepancy. GDI, which measures the costs incurred and the incomes earned in the production of GDP, is revised up $4.6 billion for 2001, is revised down $55.7 billion for 2002, and is revised up $3.6 billion for 2003 (see table 6).

For 2001, the upward revision to GDI reflects an upward revision to consumption of fixed capital (CFC) that is partly offset by a downward revision to net operating surplus. The downward revision to net operating surplus reflects a downward revision to domestic corporate profits with inventory valuation adjustment (IVA) and capital consumption adjustment (CCAdj).

For 2002, the downward revision to GDI reflects a large downward revision to net operating surplus that is partly offset by a large upward revision to supplements to wages and salaries and by a smaller upward revision to CFC. The downward revision to net operating surplus reflects large downward revisions to domestic net interest and miscellaneous payments, to domestic corporate profits with IVA and CCAdj, and to nonfarm proprietors' income with IVA and CCAdj and a smaller downward revision to "business current transfer payments (net)."

For 2003, the upward revision to GDI reflects large upward revisions to supplements to wages and salaries and to CFC and a smaller upward revision to taxes on production and imports that are largely offset by a large downward revision to net operating surplus. The downward revision to net operating surplus reflects large downward revisions to domestic corporate profits with IVA and CCAdj and to domestic net interest and miscellaneous payments and smaller downward revisions to "business current transfer payments (net)," to proprietors' income with IVA and CCAdj, and to rental income of persons with CCAdj.

The statistical discrepancy, which reflects the differences between GDP and GDI, is revised up (becoming more positive or less negative) for all 3 years. (4) For 2001, the statistical discrepancy is revised up from -$112.2 billion to -$89.6 billion (from -1.1 percent to -0.9 percent of GDP), reflecting the small upward revision to GDI and the larger upward revision to GDP. For 2002, the statistical discrepancy is revised up from -$77.2 billion to -$15.3 billion (from -0.8 percent to -0.1 percent of GDP), reflecting the large downward revision to GDI and the upward revision to GDP. For 2003, the statistical discrepancy is revised up from $12.9 billion to $25.6 billion (from 0.1 percent to 0.2 percent of GDP), reflecting the small upward revision to GDI and the larger upward revision to GDP.

Product-side components

Personal consumption expenditures (PCE) for goods. PCE for goods is revised up $5.3 billion for 2001, is revised down $1.0 billion for 2002, and is revised down $0.5 billion for 2003. For 2001, most of the upward revision is accounted for by "goods other than motor vehicles and parts." For 2002 and 2003, downward revisions to "goods other than motor vehicles and parts" are largely offset by upward revisions to motor vehicles and parts.

"Goods other than motor vehicles and parts" is revised up $4.3 billion for 2001, is revised down $9.0 billion for 2002, and is revised down $16.6 billion for 2003. These revisions result from the incorporation of revised annual data on retail sales and food services sales for 2001, of newly available annual data for 2002, and of revised monthly sales data for 2003.

For 2001, the upward revision to "goods other than motor vehicles and parts" is mostly accounted for by a downward revision to food (specifically, "food purchased for off-premise consumption"). For 2002 and 2003, the downward revisions are mostly accounted for by downward revisions to furniture and household equipment (specifically, "household durable goods" and "video and audio goods"), to clothing and shoes (specifically, women's clothing), and to "other nondurable goods."

Motor vehicles and parts is revised up for all 3 years: $1.0 billion for 2001, $8.0 billion for 2002, and $16.1 billion for 2003. For 2002 and 2003, the revisions are mostly accounted for by "net purchases of used autos and used light trucks." For 2002, the revision also results from the incorporation of revised annual data on sales and gross margins of used car dealers and new annual data. For 2003, the revision also results from the incorporation of monthly retail sales of used car dealers and of unit sales, average price, and inventories data for new car dealers from a trade source.

PCE for services. PCE for services is revised up $4.5 billion for 2001, is revised down $8.2 billion for 2002, and is revised up $3.9 billion for 2003. For 2001, the upward revision primarily reflects an upward revision to medical care services. The upward revision to medical care services is mostly accounted for by hospitals, primarily reflecting a revision to government hospitals that results from the incorporation of revised Census Bureau Government Finances data on state and local government sales of hospital services for fiscal year 2001 and new data for fiscal year 2002.

For 2002, the downward revision to PCE for services reflects downward revisions to "other services" and to transportation services that are partly offset by an upward revision to medical care services. The downward revision to "other services" is more than accounted for by a downward revision to "expense of handling life insurance and pension plans" that results from the incorporation of revised Census Bureau state and local government employee retirement system data for fiscal year 2001 and new data for fiscal year 2002 and the incorporation of new Internal Revenue Service (IRS) statistics of income data on life insurance company profits. The downward revision to transportation services is mostly accounted for by a downward revision to motor vehicle leasing that results from the incorporation of new consumer expenditure survey data from the Bureau of Labor Statistics. The upward revision to medical care services is mostly accounted for by an upward revision to hospitals that results from the incorporation of new Government Finances data for state and local government sales of hospital services for fiscal year 2002.

For 2003, the upward revision to PCE for services reflects upward revisions to "other services" and to household operation services that are partly offset by downward revisions to housing services and to medical care services. The upward revision to "other services" is mostly accounted for by an upward revision to "net foreign travel" that results from the incorporation of revised data on travel and on passenger fares from the international transactions accounts (ITAs). The upward revision to household operation services is mostly accounted for by an upward revision to natural gas that results from the incorporation of newly available data on residential natural gas consumption from the Energy Information Administration. The downward revision to housing services is mostly accounted for by a downward revision to tenant-occupied rent that results from the incorporation of newly available current population survey data on the number of tenant-occupied units from the Census Bureau. The downward revision to medical care services is mostly accounted for by hospitals; within hospitals, a downward revision to private nonprofit hospitals is partly offset by an upward revision to government hospitals. The revision to private nonprofit hospitals results from the incorporation of new Census Bureau service annual survey data, and the revision to government hospitals reflects the extrapolation of the revised 2002 estimate.

Nonresidential structures. Nonresidential structures is revised up for all 3 years: $0.5 billion for 2001, $5.3 billion for 2002, and $2.4 billion for 2003.

For 2002, the revisions primarily reflect upward revisions to petroleum and natural gas structures and to commercial and health care structures. The upward revision to petroleum and natural gas structures results from the incorporation of newly available trade source data on drilling costs. The revision to commercial and health care structures primarily results from the incorporation of revised Census Bureau data on the value of construction put in place. (5)

Equipment and software. Equipment and software is revised up $2.2 billion for 2001, is revised down $21.5 billion for 2002, and is revised down $18.2 billion for 2003. For 2002 and 2003, the largest contributors to the downward revisions are communication equipment and software. The downward revisions to communication equipment primarily result from the incorporation of preliminary shipments data published as part of the "Advance Summary Statistics" from the 2002 Economic Census. For 2002, the downward revision to software primarily results from the incorporation of newly available, detailed product receipts data from the Census Bureau's 2002 Service Annual Survey (SAS). For 2003, the downward revision to software primarily results from the incorporation of newly available preliminary data from the Census Bureau's 2003 SAS.

Residential fixed investment. Residential fixed investment is revised up for all 3 years: $0.1 billion for 2001, $0.4 billion for 2002, and $9.9 billion for 2003. For 2003, an upward revision to single-family structures accounts for most of the revision and results from the incorporation of revised Census Bureau data on the value of construction put in place.

Change in private inventories. The change in private inventories is revised up for all 3 years: $4.4 billion for 2001, $5.8 billion for 2002, and $1.2 billion for 2003. (6)

The change in farm inventories is revised slightly for 2001; for 2002, the change is revised up $1.9 billion, and for 2003, the change is revised up $2.6 billion. (7)

The change in private nonfarm inventories is revised up $4.5 billion for 2001, is revised up $4.0 billion for 2002, and is revised down $1.4 billion for 2003. For 2001, the revision primarily reflects upward revisions to the changes in book value for merchant wholesale trade and for retail trade; it also reflects an upward revision to the inventory valuation adjustment (IVA). The revisions to the changes in book value result from the incorporation of revised annual book value data from the Census Bureau's annual wholesale trade survey and annual retail trade survey (ARTS). The revision to the IVA results from the incorporation of revised BEA unit labor cost indexes. For 2002, the upward revision is more than accounted for by an upward revision to the change in book value for "retail trade motor vehicle dealers" that results from the incorporation of newly available book value data from the ARTS.

Net exports of goods and services. Net exports of goods and services is revised down $0.5 billion for 2001, is revised up $1.4 billion for 2002, and is revised down $3.1 billion for 2003. For 2003, the downward revision is more than accounted for by a downward revision to exports of services (primarily to "services furnished without payment by financial intermediaries except life insurance carriers").

The revisions also reflect the annual revision to BEA's international transactions accounts (ITAs), which incorporated updated source data and reflected the introduction of insurance premium supplements. (8)

The ITA revisions for most components are incorporated into the NIPAs at their "best level," beginning with the estimates for 2001. As a result, there are small discontinuities between the NIPA estimates for 2000 and those for 2001 (table 7). However, for insurance premium supplements, the discontinuity would have been larger. In order to avoid distorting the change in GDP for the first quarter of 2001, the ITA-based estimates are brought into the NIPAs over the 12 quarters of 2001 to 2003. For current-dollar net exports of goods and services (and for current-dollar GDP), the change from 1999 to 2000 is understated by only $0.4 billion. (The revisions to the ITAs for years before 2001 will be incorporated in the next comprehensive NIPA revision.)

Government consumption expenditures and gross investment. Government spending is revised up for all 3 years: $10.9 billion for 2001, $24.1 billion for 2002, and $20.7 billion for 2003.

Federal Government spending is unrevised for 2001, is revised up $1.3 billion for 2002, and is revised down $5.0 billion for 2003. For 2003, the revision is primarily accounted for by nondefense spending and primarily results from the incorporation of revised Federal budget data for fiscal year 2003 and preliminary budget data for fiscal year 2004.

State and local government spending is revised up for all 3 years: $11.0 billion for 2001, $22.7 billion for 2002, and $25.7 billion for 2003. Consumption expenditures is revised up for all 3 years: $3.7 billion for 2001, $11.9 billion for 2002, and $12.9 billion for 2003. The revisions are primarily accounted for by upward revisions to services--mainly medical services that result from the incorporation of revised data for fiscal year 2001 and newly available data for fiscal year 2002 from Census Bureau Government Finances.

State and local gross investment is also revised up for all 3 years: $7.2 billion for 2001, $10.9 billion for 2002, and $12.9 billion for 2003. The revisions are mainly to structures and result from the incorporation of revised Census Bureau data on the value of construction put in place.

Income-side components

Compensation of employees, paid. "Compensation of employees, paid" is revised up for all 3 years: $1.8 billion for 2001, $50.6 billion for 2002, and $86.2 billion for 2003. For 2002 and 2003, the revisions are mostly accounted for by upward revisions to supplements to wages and salaries--specifically, to employer contributions for employee pension and insurance funds.

For 2002, the revision to these employer contributions primarily reflects an upward revision to employer contributions to private pension and profit-sharing plans. For 2003, the revision to employer contributions primarily reflects upward revisions to employer contributions to group health and life insurance and to private pension and profit-sharing plans. The revisions to employer contributions to group health and life insurance and to private pension and profit-sharing plans reflect the incorporation of more complete source data.

Net operating surplus. Net operating surplus consists of net operating surplus of private enterprises and the current surplus of government enterprises. This component is revised down for all 3 years: $10.5 billion for 2001, $124.1 billion for 2002, and $136.7 billion for 2003.

Consumption of fixed capital (CFC). CFC, which is the charge for the using up of private and government fixed capital, is revised up for all 3 years: $14.6 billion for 2001, $15.3 billion for 2002, and $43.0 billion for 2003. The revisions are mostly accounted for by upward revisions to the private component of CFC that result from the incorporation of revised BEA estimates of fixed investment, revised prices for 2001-2003, and data from the new BEA capital flow table for 1997. (The estimates of investment and prices are direct inputs into the calculation of both private and government net capital stocks, which are used to calculate the CFC.)

Private capital consumption allowances (CCA) is tax-return-based depreciation for corporations and nonfarm proprietorships and historical-cost depreciation (using consistent service lives) for farm proprietorships, rental income of persons, and nonprofit institutions. CCA is revised down for all 3 years: $2.4 billion for 2001, $50.3 billion for 2002, and $46.4 billion for 2003. These revisions primarily result from the incorporation of revised and newly available IRS tax return data that affect both the corporate and noncorporate components. For 2001 and 2002, the revisions result from the incorporation of revised and newly available IRS tax return data for corporations and newly available IRS tax return data for sole proprietorships and partnerships. For 2003, the revision results from the incorporation of revised BEA projections of IRS depreciation and amortization on the basis of BEA estimates of investment flows and IRS service lives and depreciation conventions.

Private capital consumption adjustment (CCAdj) converts depreciation that is reported on income tax returns to depreciation that is based on replacement cost of fixed assets and is derived as the difference between private CCA and private CFC. Private CCAdj is revised down for all 3 years: $12.6 billion for 2001, $60.5 billion for 2002, and $80.8 billion for 2003.

Private enterprise income

Proprietors' income with IVA and CCAdj. Proprietors' income with IVA and CCAdj is revised up $1.3 billion for 2001, is revised down $28.1 billion for 2002, and is revised down $12.3 billion for 2003. For 2001, the upward revision reflects an upward revision to nonfarm proprietors' income that is largely offset by a downward revision to farm proprietors' income. For 2002, both farm and nonfarm proprietors' income are revised down. For 2003, a downward revision to nonfarm proprietors' income is partly offset by an upward revision to farm proprietors' income.

Farm proprietors' income is revised down $5.3 billion for 2001, is revised down $4.6 billion for 2002, and is revised up $2.4 billion for 2003. For 2001 and 2002, the downward revisions result from the incorporation of revised information from the U.S. Department of Agriculture (USDA) and revised BEA estimates of depreciation. For 2003, the upward revision results from the incorporation of newly available information from the USDA and revised BEA estimates of depreciation.

Nonfarm proprietors' income with IVA and CCAdj is revised up $2.6 billion for 2001, is revised down $23.5 billion for 2002, and is revised down $15.1 billion for 2003. For 2001, the upward revision reflects upward revisions to the CCAdj and to nonfarm proprietors' income without CCAdj; the revision to nonfarm proprietors' income is based on revised IRS tabulations of sole proprietorship and partnership tax returns for 2001. For 2002, the downward revision reflects downward revisions to the CCAdj and to nonfarm proprietors' income without CCAdj; the revision to nonfarm proprietors' income is based on newly available IRS tabulations of sole proprietorship and partnership tax returns for 2002. For 2003, the downward revision to nonfarm proprietors' income reflects a downward revision to the CCAdj. (For more information about the CCAdj, see "Consumption of fixed capital.")

Rental income of persons with CCAdj. Rental income of persons with CCAdj is revised up $4.3 billion for 2001, is revised down $2.1 billion for 2002, and is revised down $10.4 billion for 2003. For 2001, the upward revision is primarily accounted for by upward revisions to royalty income and to rental income of persons without CCAdj for nonfarm residential dwellings.

For 2003, the downward revision reflects a downward revision to royalty income and a downward revision to rental income of nonfarm residential dwellings that reflects a downward revision to nonfarm permanent-site space rent that is partly offset by downward revisions to several categories of nonfarm permanent site expenses, such as closing costs, mortgage interest, and maintenance and repairs; these revisions result from the incorporation of data from regular sources.

Corporate profits with IVA and CCAdj. Corporate profits with IVA and CCAdj is revised down for all 3 years: $3.1 billion for 2001, $29.6 billion for 2002, and $48.8 billion for 2003. The revisions reflect downward revisions to the CCAdj that are partly offset by upward revisions to profits before tax. (For more information about the CCAdj, see "Consumption of fixed capital.") The revisions to profits before tax result from the incorporation of revised 2001 and newly available 2002 IRS tabulations of corporate tax return data and profits data for 2003 from regulatory agencies and public financial reports.

For all 3 years, both domestic profits and rest-of-the-world profits are revised up. The revisions to domestic profits primarily result from the incorporation of revised 2001 and newly available 2002 IRS tabulations of corporate tax return data and of other data from regular sources. The revisions to rest-of-the-world profits result from the incorporation of the annum revision of the ITAs.

Net interest and miscellaneous payments. Net interest and miscellaneous payments is revised down for all 3 years: $2.1 billion for 2001, $49.5 billion for 2002, and $40.2 billion for 2003. The revisions are accounted for by revisions to net interest. (9)

For 2001, the revision reflects a downward revision to monetary interest paid by domestic corporate business that is partly offset by a downward revision to monetary interest received by domestic corporate business.

For 2002, downward revisions to monetary interest paid by domestic business, to imputed interest paid by domestic business, and to imputed interest paid by the rest of the world are partly offset by downward revisions to monetary interest received by domestic business, to imputed interest received by domestic corporate business, and to imputed interest received by the rest of the world.

The revisions to domestic monetary interest result from the incorporation of revised and newly available IRS tabulations of tax return data for corporations and for sole proprietorships and partnerships. The revisions to rest-of-the-world monetary interest result from the incorporation of the results of the annual revision of BEA's ITAs. The revisions to imputed interest paid result from the incorporation of newly available trade source data, of revised Federal Reserve Board (FRB) tabulations of commercial bank Call Reports data, and of the results of the annual revision of the ITAs. The revisions to imputed interest received result from the incorporation of revised data from the FRB flow-of-funds accounts on business deposits at commercial banks and of the results of the annual revision of the ITAs.

For 2003, the upward revision to net interest is attributable to the revisions to the 2002 levels and to newly incorporated regular source data from regulatory agencies, particularly data from the FRB flow-of-funds accounts. (10)

Taxes on production and imports. Taxes on production and imports is revised down $1.2 billion for 2001, is revised up $2.5 billion for 2002, and is revised up $9.4 billion for 2003. The revision for 2003 is mostly accounted for by revisions to state and local government sales taxes and "other" taxes, reflecting extrapolations of newly available tabulations of Census Bureau Government Finances data for 2002.

Subsidies. Subsides is unrevised for 2001 and for 2002, and it is revised down $1.5 billion for 2003.

Business current transfer payments (net). This component consists of "transfer payments to persons (net)," "business transfer payments to government (net)," and "business transfer payments to the rest of the world (net)."

"Business current transfer payments (net)" is revised up $0.1 billion for 2001, is revised down $8.9 billion for 2002, and is revised down $17.0 billion for 2003. For 2002 and 2003, the downward revisions primarily reflect downward revisions to insurance payments to persons and to corporate gifts to persons. The revisions to insurance payments to persons are accounted for by downward revisions to auto liability payments, to medical malpractice payments, and to net insurance settlements and result from the incorporation of newly available trade source data. The revisions to corporate gifts to persons result from the incorporation of newly available IRS tabulations of tax return data for corporations.

Current surplus of government enterprises. The current surplus of government enterprises is revised down $2.6 billion for 2001, is unrevised for 2002, and is revised up $4.5 billion for 2003.

Net receipts of income. Net receipts of income from the rest of the world, which is excluded from GDP but is included in gross national product (GNP), is revised up for all 3 years: $8.5 billion for 2001, $5.5 billion for 2002, and $11.4 billion for 2003. For 2001 and 2002, the upward revisions reflect downward revisions to income payments to the rest of the world and upward revisions to income receipts from the rest of the world. For 2003, the upward revision primarily reflects an upward revision to income receipts from the rest of the world.

The revisions for all 3 years primarily result from the incorporation of the results of the annual revision of the ITAs. Specifically, the revised estimates of income receipts primarily result from the incorporation of revised estimates of direct investment income receipts, which in turn result from the incorporation of updated source data. The revised estimates of income payments primarily result from the incorporation of updated source data.

As a result of the incorporation of the ITA revisions into the NIPAs at "best level" the NIPA estimates for 2000 and for 2001 are discontinuous (table 7). For net receipts of income, the change from 2000 to 2001 is understated by $1.7 billion. The discontinuity is primarily accounted for by interest paid to the rest of the world and results from the incorporation of an improved methodology for estimating interest on U.S. Treasury bonds and notes. For GNP, which includes both net exports of goods and services and net receipts of income, the change is understated by $2.1 billion.

Gross national product. GNP is revised up $35.7 billion, or 0.4 percent, for 2001, is revised up $11.8 billion, or 0.1 percent, for 2002, and is revised up $27.6 billion, or 0.3 percent, for 2003. The revisions to GNP differ from those to GDP because of the revisions to net receipts of income.

Personal income and its disposition

Personal income. Personal income is the income received by persons from participation in production, from personal current transfer receipts, and from contributions for government social insurance. Personal income is revised up $11.0 billion for 2001, is revised down $31.4 billion for 2002, and is revised down $46.2 billion for 2003. These revisions partly reflect the previously described revisions to the components of national income that are included in personal income--wage and salary disbursements, supplements to wages and salaries, proprietors' income, and rental income of persons--and they reflect the revision to the component of personal income--personal income receipts on assets--that is derived from related components of national income. The revisions also reflect revisions to personal current transfer receipts and to contributions for government social insurance.

Compensation of employees, received. These revisions primarily reflect the revisions to "compensation of employees, paid."

Personal income receipts on assets. This aggregate consists of personal interest income and personal dividend income. Personal interest income consists of monetary and imputed interest received by persons from all sources; it is calculated as net interest plus interest paid by persons and interest paid by government less interest received by government. Personal interest income is revised up $7.3 billion for 2001, is revised down $35.7 billion for 2002, and is revised down $34.7 billion for 2003. These revisions primarily reflect the revisions to net interest.

Personal dividend income consists of dividend income received by persons from all sources, and it equals net corporate dividends less dividends received by government. Personal dividend income is revised down for all 3 years: $2.2 billion for 2001, $8.3 billion for 2002, and $35.9 billion for 2003. These revisions result from the incorporation of revised and newly available IRS tabulations of corporate tax return data, of the results from the annual revision of the ITAs, and of data from public financial statements.

Personal current transfer receipts. Personal current transfer receipts consists of government social benefits and business current transfer payments to persons. Personal current transfer receipts is revised up $1.3 billion for 2001, is revised down $9.5 billion for 2002, and is revised down $42.1 billion for 2003.

Government social benefits to persons is revised up $1.3 billion for 2001, is revised down $0.6 billion for 2002, and is revised down $25.2 billion for 2003. For 2003, Federal Government social benefits to persons is revised down $13.2 billion, primarily as a result of downward revisions to medical care payments, reflecting extrapolations of newly available tabulations of Medicare payments for 2002 from the Centers for Medicare and Medicaid Services (CMS) and new extrapolations using Medicare outlays from the Treasury Department. For 2003, state and local government social benefits to persons is revised down $11.9 billion for 2003; the revision results from the incorporation of newly available tabulations of Medicaid payments for 2003 from the CMS.

The revisions to business current transfer payments to persons reflect the revisions to "business current transfer payments (net)."

Contributions for government social insurance. These contributions are deducted in the calculation of personal income, and they consist of both personal and employer contributions. Contributions for government social insurance is revised up $2.6 billion for 2001, is revised down $2.0 billion for 2002, and is revised up $3.6 billion for 2003.

Personal current taxes. This component is revised down $6.4 billion for 2001, is revised down $1.9 billion for 2002, and is revised up $10.5 billion for 2003. For 2001, the downward revision is mostly accounted for by a downward revision to Federal income taxes that results from the incorporation of revised data on personal income tax receipts from the Treasury Department and of revised data on taxable wages from the Social Security Administration. For 2003, the upward revision is more than accounted for by an upward revision to Federal income taxes that results from the incorporation of newly available data on personal income tax receipts from the Treasury Department.

Disposable personal income (DPI). Reflecting the revisions to personal income and to personal current taxes, DPI is revised up $17.4 billion for 2001, is revised down $29.5 billion for 2002, and is revised down $56.6 billion for 2003.

Personal outlays. This category consists of PCE, personal interest payments, and personal current transfer payments. This aggregate is revised up $12.3 billion for 2001, is revised down $5.5 billion for 2002, and is revised up $6.3 billion for 2003. Revisions to PCE account for most of the 2001 revision and more than account for the 2002 revision. For 2003, the revision reflects upward revisions to PCE and to personal current transfer payments.

Personal saving. Personal saving--the difference between DPI and personal outlays--is revised up $5.1 billion for 2001, is revised down $24.0 billion for 2002, and is revised down $62.9 billion for 2003. For 2001, the upward revision reflects the upward revision to DPI that is partly offset by the upward revision to personal outlays. For 2002, the downward revision reflects the downward revision to DPI that is partly offset by the downward revision to personal outlays. For 2003, the downward revision reflects the large downward revision to DPI and the upward revision to personal outlays. Primarily reflecting the revisions to personal saving, the personal saving rate--personal saving as a percentage of DPI--is revised up from 1.7 percent to 1.8 percent for 2001, is revised down from 2.3 percent to 2.0 percent for 2002, and is revised down from 2.1 percent to 1.4 percent for 2003.

Saving and investment

Gross saving consists of net saving and consumption of fixed capital (CFC). Net saving consists of net private saving and net government saving. Gross saving is revised down $0.4 billion for 2001, is revised down $55.1 billion for 2002, and is revised up $2.8 billion for 2003.

Gross saving as a percentage of gross national income is unrevised at 16.2 percent for 2001, is revised down 0.5 percentage point to 14.1 percent for 2002, and is unrevised at 13.5 percent for 2003.

For 2001, a downward revision to net saving is mostly offset by an upward revision to CFC. The revision to net saving is mostly accounted for by a downward revision to net government saving that reflects a downward revision to state and local government net saving.

For 2002, a downward revision to net saving is partly offset by an upward revision to CFC. The revision to net saving reflects downward revisions to net government saving and to net private saving. The revision to net government saving reflects downward revisions to state and local government net saving and to Federal Government net saving. The revision to net private saving reflects downward revisions to personal saving and to undistributed corporate profits with IVA and CCAdj.

For 2003, an upward revision to CFC is largely offset by a downward revision to net saving. The revision to net saving reflects a downward revision to net private saving that is partly offset by an upward revision to net government saving. The revision to net private saving reflects downward revisions to personal saving and to undistributed corporate profits with IVA and CCAdj. The revision to net government saving is more than accounted for by an upward revision to Federal Government net saving.

"Gross domestic investment, capital account transactions, and net lending, NIPAs" is revised up for all 3 years: $22.1 billion for 2001, $6.7 billion for 2002, and $15.5 billion for 2003. For 2001, the revision reflects upward revisions to gross domestic investment and to "net lending or net borrowing, NIPAs." For 2002, the revision primarily reflects an upward revision to "net lending or net borrowing, NIPAs." For 2003, the revision reflects upward revisions to gross domestic investment and to "net lending or net borrowing, NIPAs."

Annual price estimates

Revisions to the chain-type price indexes result from the incorporation of newly available and revised source data and from the regularly scheduled incorporation of annual weights for the most recent year (2003). In this annual revision, the source data for price indexes that are used for deflation and the source data that affect implicit prices are revised. (11) In addition, the prices used for deflation reflect updated seasonal factors.

The percent change from the preceding year in the price index for gross domestic purchases is unrevised at 2.0 percent for 2001, is revised up 0.1 percentage point to 1.5 percent for 2002, and is revised up 0.1 percentage point to 2.0 percent for 2003 (see the addendum to table 8 and chart 1). The annual percent change in the price index for GDP is unrevised at 2.4 percent for 2001, is revised up 0.2 percentage point to 1.7 percent for 2002, and is revised up 0.1 percentage point to 1.8 percent for 2003.

For 2001, the revisions to prices are not noteworthy. For 2002, the upward revision to the price index for gross domestic purchases reflects upward revisions to the price indexes for Federal defense spending and for nonresidential structures. The upward revision to the price index for Federal defense spending is primarily accounted for by an upward revision to compensation; it reflects the new treatment of contributions to the Uniformed Services Retiree Health Care Fund as part of compensation (see "Changes in Methodology"). The revision to the price index for nonresidential structures primarily reflects a revision to the implicit price of "mining exploration, shafts, and wells" which in turn, reflects the revisions to the current-dollar estimates. For 2003, the revision to the price index for gross domestic purchases reflects upward revisions to the price indexes for Federal defense spending, for residential fixed investment, and for PCE. The upward revision to the price index for Federal defense spending reflects the change in methodology for compensation. The revision to the price index for residential fixed investment primarily reflects a revision to the price of single-family structures, reflecting a revised Census Bureau index. The revision to the price index for PCE is attributable to revisions to durable goods and to services; the revision to durable goods reflects upward revisions to the implicit price of used motor vehicle margins; the revision to services reflects revisions to the price index for medical care services that reflects revised BLS producer price indexes and revisions to the current-dollar estimates for nonprofit hospitals and nursing homes.

Changes in Methodology

As part of the annual revision to the NIPAs, two changes in methodology were incorporated. (12)

New health insurance fund. This health care plan was passed by the U.S. Congress on October 30, 2000, in Public Law 106-398. The Uniformed Services Retiree Health Care Fund began operations on October 1, 2002. This plan pays for health care benefits received by Medicare-eligible retired members of the armed forces and their dependents through new programs under TRICARE. (13)

Beginning with this annual revision, BEA is recognizing the health care plan as an employee pension and insurance fund and adopting a treatment for it that is similar to the treatment for the Military Retirement Trust Fund. (14) The payments to this plan by the Department of Defense (DOD) are treated as compensation of employees (in NIPA tables 3.10.1, 3.10.3, 3.10.4, 3.10.5, and 3.10.6) and as employer contributions for employee pension and insurance funds (in NIPA table 2.1). The DOD payments for health care that was received in fiscal years 2001 and 2002 are now classified as government social benefits; previously, these payments were classified as government consumption expenditures for defense services in the NIPAs.

In order to account for future health care costs attributable to military service before the creation of the health care plan, the Treasury Department makes annual payments to the fund, and BEA treats these payments as capital transfers from the government sector to the household sector (a new line has been added to NIPA table 5.10).

As a result of the recognition of the new health care plan, the following NIPA series are revised: For 2001, government social benefits is revised up $0.9 billion, and defense services is revised down by the same amount. For 2002, compensation is revised up $1.9 billion, employer contributions for employee pension and insurance funds is revised up $1.9 billion, government social benefits is revised up $1.9 billion, defense services is revised down $3.8 billion, and capital transfers is revised up $3.6 billion. For 2003, compensation is revised up $8.6 billion, employer contributions is revised up $8.6 billion, defense services is revised down $8.6 billion, and capital transfers is revised up $14.8 billion.

As a result of the incorporation of the payments from the new health care plan into the NIPAs, the price index for Federal Government compensation is revised up. It is revised up because BEA's estimates of real Federal Government compensation are prepared by extrapolating the current-dollar value of compensation by an index of employment that is adjusted for labor quality and because the recognition of the healthcare plan raises the current-dollar value of compensation but has no effect on the employment index.

Motor vehicles. The procedure used to prepare the quarterly estimates of the change in private inventories for new domestic light trucks is now the same as the procedure that is used for autos. The estimates of unit inventory change are calculated as the sum of seasonally adjusted domestic production, of Canadian imports, and of Mexican imports, less the sum of sales and of exports. The estimates of unit production are based on seasonally adjusted data on unit assemblies of light trucks from the Federal Reserve Board. The estimates of Canadian and Mexican imports and exports are based on unit data from the Census Bureau and the U.S. International Trade Commission; these data are reclassified to be consistent with the classifications of light trucks and autos that are used in the input-output accounts. The estimates of sales are based on data on unit sales of domestic light trucks, which are seasonally adjusted using seasonal adjustment factors from the Federal Reserve Board.

Previously, the estimates of unit inventory change were calculated as seasonally adjusted sales less seasonally adjusted "apparent supply," which applied seasonal adjustment to the sum of seasonally unadjusted sales and an estimate of seasonally unadjusted change in unit inventories that is based on trade source data.

In addition, the estimates for new domestic autos now reflect seasonal adjustment factors for unit production from the Federal Reserve Board.

The annual estimates of the change in inventories of motor vehicle dealers for 2002 are based on data from the Census Bureau's annual retail trade survey. For 2003, the estimates are prepared using the same procedure as that used for the quarterly estimates.
Appendix A. Revisions to the National Income and Product Accounts

[Billions of dollars]

                                                          2001

                                                 Revised       Revision

                                                   Account 1. Domestic
                                                        Income and
                                                      Product Account

Compensation of employees, paid                    5,947.2          1.8
  Wage and salary accruals                         4,947.2          0.0
    Disbursements                                  4,947.9          0.0
    Wage accruals less disbursements                   0.0          0.0
  Supplements to wages and salaries                  999.3          1.7
Taxes on production and imports                      728.6         -1.2
Less: Subsidies                                       55.3          0.0
Net operating surplus                              2,315.6        -10.5
  Private enterprises                              2,317.0         -7.9
  Current surplus of government enterprises           -1.4         -2.6
Consumption of fixed capital                       1,281.5         14.6
Gross domestic income                             10,217.6          4.6
Statistical discrepancy                              -89.6         22.6
GROSS DOMESTIC PRODUCT                            10,128.0         27.2
Personal consumption expenditures                  7,055.0          9.6
  Durable goods                                      883.7          1.8
  Nondurable goods                                 2,017.1          3.5
  Services                                         4,154.3          4.5
Gross private domestic investment                  1,614.3          7.1
  Fixed investment                                 1,646.1          2.7
    Nonresidential                                 1,176.8          2.7
      Structures                                     322.6          0.5
      Equipment and software                         854.2          2.2
    Residential                                      469.3          0.1
  Change in private inventories                      -31.7          4.4
Net exports of goods and services                   -367.0         -0.5
  Exports                                          1,032.8         -2.3
  Imports                                          1,399.8         -1.9
Government consumption expenditures and gross
  investment                                       1,825.6         10.9
  Federal                                            612.9          0.0
    National defense                                 392.6         -0.4
    Nondefense                                       220.3          0.4
  State and local                                  1,212.8         11.0
GROSS DOMESTIC PRODUCT                            10,128.0         27.2

                                                     Account 2. Private
                                                      Enterprise Income
                                                           Account

Income payments on assets                          2,417.9        -13.6
  Interest and miscellaneous payments              2,405.0         -9.4
  Dividend payments to the rest of the world          46.5          0.5
  Reinvested earnings on foreign direct
    investment in the United States                  -33.7         -4.8
Business current transfer payments (net)              92.8          0.3
  To persons (net)                                    50.0          0.1
  To government (net)                                 47.5          0.2
  To the rest of the world (net)                      -4.7          0.0
Proprietors' income with inventory valuation
  and capital consumption adjustments                771.9          1.3
Rental income of persons with capital
  consumption adjustment                             167.4          4.3
Corporate profits with inventory valuation
  and capital consumption adjustments                767.3          3.1
  Taxes on corporate income                          204.1          3.0
    To government                                    194.9          2.9
    To the rest of the world                           9.2          0.0
  Profits after tax with inventory valuation
    and capital consumption adjustments              563.2         -6.1
    Net dividends                                    370.9         -2.3
    Undistributed corporate profits with
      inventory valuation and capital
      consumption adjustments                        192.3         -3.7
USES OF PRIVATE ENTERPRISE INCOME                  4,217.3        -10.8
Net operating surplus                              2,317.0         -7.9
Income receipts on assets                          1,900.4         -2.8
  Interest                                         1,717.8         -0.8
  Dividend recepts from the rest of the world         87.4          6.2
  Reinvested earnings on U.S. direct
    investment abroad                                 95.2         -2.1
SOURCES OF PRIVATE ENTERPRISE INCOME               4,217.3        -10.8

                                                    Account 3. Personal
                                                     Income and Outlay
                                                          Account

Personal current taxes                             1,237.3         -6.4
Personal outlays                                   7,354.5         12.3
  Personal consumption expenditures                7,055.0          9.6
  Personal interest payments                         212.2          3.1
  Personal current transfer payments                  87.2         -0.5
    To government                                     54.2         -0.4
    To the rest of the world (net)                    33.0         -0.1
Personal saving                                      132.3          5.1
PERSONAL TAXES, OUTLAYS, AND SAVING                8,724.1         11.0
Compensation of employees, received                5,942.1          1.7
  Wage and salary disbursements                    4,942.8         -0.1
    Domestic                                       4,939.8          0.0
    Rest of the world                                  2.9         -0.2
  Supplements to wages and salaries                  999.3          1.7
    Employer contributions for employee
      pension and insurance funds                    642.7          0.1
    Employer contributions for government
      social insurance                               356.6          1.7
Proprietors' income with inventory valuation
  and capital consumption adjustments                771.9          1.3
Rental income of persons with capital
  consumption adjustment                             167.4          4.3
Personal income receipts on assets                 1,380.0          5.1
  Personal interest income                         1,011.0          7.3
  Personal dividend income                           369.0         -2.2
Personal current transfer receipts                 1,193.9          1.3
  Government social benefits                       1,143.9          1.3
  From business (net)                                 50.0          0.1
Less: Contributions for government social
  insurance                                          731.1          2.6

PERSONAL INCOME                                    8,724.1         11.0

                                                  Account 4. Government
                                                       Receipts and
                                                   Expenditures Account

Consumption expenditures                           1,501.6          3.9
Current transfer payments                          1,160.6          1.4
  Government social benefits                       1,146.6          1.3
    To persons                                     1,143.9          1.3
    To the rest of the world                           2.7          0.0
  Other current transfer payments to the
    rest of the world (net)                           13.9         -0.1
Interest payments                                    344.1          0.0
Subsidies                                             55.3          0.0
Less: Wage accruals less disbursements                 0.0          0.0
Net government saving                                 51.5        -16.3
  Federal                                             46.7         -3.8
  State and local                                      4.8        -12.5
GOVERNMENT CURRENT EXPENDITURES AND NET
  SAVING                                           3,113.1        -11.1
Current tax receipts                               2,168.0         -4.6
  Personal current taxes                           1,237.3         -6.4
  Taxes on production and imports                    728.6         -1.2
  Taxes on corporate income                          194.9          2.9
  Taxes from the rest of the world                     7.1         -0.1
Contributions for government social insurance        731.1          2.6
Income receipts on assets                            113.7         -6.3
  Interest and miscellaneous receipts                111.7         -6.3
  Dividends                                            2.0          0.0
Current transfer receipts                            101.8         -0.1
  From business (net)                                 47.5          0.2
  From persons                                        54.2         -0.4
Current surplus of government enterprises             -1.4         -2.6
GOVERNMENT CURRENT RECEIPTS                        3,113.1        -11.1

                                                    Account 5. Foreign
                                                   Transactions Current
                                                          Account

Exports of goods and services                      1,032.8         -2.3
Income receipts from the rest of the world           322.4          3.4
  Wage and salary receipts                             2.9         -0.2
  Income receipts on assets                          319.5          3.6
    Interest                                         136.9         -0.4
    Dividends                                         87.4          6.2
    Reinvested earnings on U.S. direct
      investment abroad                               95.2         -2.1
CURRENT RECEIPTS FROM THE REST OF THE WORLD        1,355.2          1.1
Imports of goods and services                      1,399.8         -1.9
Income payments to the rest of the world             278.8         -5.0
  Wage and salary payments                             8.1          0.0
  Income payments on assets                          270.7         -5.0
    Interest                                         257.8         -0.8
    Dividends                                         46.5          0.5
    Reinvested earnings on foreign direct
      investment in the United States                -33.7         -4.8
Current taxes and transfer payments to the
  rest of the world (net)                             47.0          0.0
  From persons (net)                                  33.0         -0.1
  From government (net)                                9.5          0.0
  From business (net)                                  4.5          0.0
Balance on current account, national income
  and product accounts                              -370.4          8.0
CURRENT PAYMENTS TO THE REST OF THE WORLD
  AND BALANCE ON CURRENT ACCOUNT                   1,355.2          1.1

                                                    Account 6. Domestic
                                                      Capital Account

Gross domestic investment                          1,938.3         14.1
  Private fixed investment                         1,646.1          2.7
  Government fixed investment                        324.0          7.0
  Change in private inventories                      -31.7          4.4
Capital account transactions (net)                     1.1          0.0
Net lending or net borrowing (-), national
  income and product accounts                       -371.5          8.0
GROSS DOMESTIC INVESTMENT, CAPITAL ACCOUNT
  TRANSACTIONS, AND NET LENDING                    1,567.9         22.1
Net saving                                           376.1        -15.0
  Personal saving                                    132.3          5.1
  Undistributed corporate profits with
    inventory valuation and capital
    consumption adjustments)                         192.3         -3.7
  Wage accruals less disbursements (private)           0.0          0.0
  Net government saving                               51.5        -16.3
Plus: Consumption of fixed capital                 1,281.5         14.6
  Private                                          1,075.5         14.5
  Government                                         206.0          0.1
    General government                               172.7          0.3
    Government enterprises                            33.3         -0.2
Equals: Gross saving                               1,657.6         -0.4
Statistical discrepancy                              -89.6         22.6
GROSS SAVING AND STATISTICAL DISCREPANCY           1,567.9         22.1

                                                    Account 7. Foreign
                                                   Transactions Capital
                                                         Account

BALANCE ON CURRENT ACCOUNT, NATIONAL INCOME
  AND PRODUCT ACCOUNTS                              -370.4          8.0
Capital account transactions (net)                     1.1          0.0
Net lending or net borrowing (-), national
  income and product accounts                       -371.5          8.0
CAPITAL ACCOUNT TRANSACTIONS (NET) AND NET
  LENDING, NATIONAL INCOME AND PRODUCT
  ACCOUNTS                                          -370.4          8.0

                                                          2002

                                                 Revised       Revision

                                                   Account 1. Domestic
                                                        Income and
                                                      Product Account

Compensation of employees, paid                    6,074.9         50.6
  Wage and salary accruals                         4,981.7          1.9
    Disbursements                                  4,981.7          1.9
    Wage accruals less disbursements                   0.0          0.0
  Supplements to wages and salaries                1,093.2         48.7
Taxes on production and imports                      762.6          2.5
Less: Subsidies                                       38.2          0.0
Net operating surplus                              2,399.1       -124.1
  Private enterprises                              2,396.3       -124.0
  Current surplus of government enterprises            2.8          0.0
Consumption of fixed capital                       1,303.9         15.3
Gross domestic income                             10,502.3        -55.7
Statistical discrepancy                              -15.3         61.9
GROSS DOMESTIC PRODUCT                            10,487.0          6.2
Personal consumption expenditures                  7,376.1         -9.2
  Durable goods                                      916.2          4.9
  Nondurable goods                                 2,080.1         -5.9
  Services                                         4,379.8         -8.2
Gross private domestic investment                  1,579.2        -10.0
  Fixed investment                                 1,568.0        -15.9
    Nonresidential                                 1,063.9        -16.3
      Structures                                     271.6          5.3
      Equipment and software                         792.4        -21.5
    Residential                                      504.1          0.4
  Change in private inventories                       11.2          5.8
Net exports of goods and services                   -424.9          1.4
  Exports                                          1,005.0         -1.8
  Imports                                          1,429.9         -3.2
Government consumption expenditures and gross
  investment                                       1,956.6         24.1
  Federal                                            680.8          1.3
    National defense                                 437.4         -0.9
    Nondefense                                       243.4          2.2
  State and local                                  1,275.8         22.7
GROSS DOMESTIC PRODUCT                            10,487.0          6.2

                                                     Account 2. Private
                                                      Enterprise Income
                                                           Account

Income payments on assets                          2,150.6       -166.1
  Interest and miscellaneous payments              2,102.4       -165.3
  Dividend payments to the rest of the world          42.8          0.7
  Reinvested earnings on foreign direct
    investment in the United States                    5.4         -1.5
Business current transfer payments (net)              80.9         -8.9
  To persons (net)                                    33.7         -8.9
  To government (net)                                 46.7         -0.1
  To the rest of the world (net)                       0.4          0.0
Proprietors' income with inventory valuation
  and capital consumption adjustments                769.6        -28.1
Rental income of persons with capital
  consumption adjustment                             170.9         -2.1
Corporate profits with inventory valuation
  and capital consumption adjustments                874.6        -29.6
  Taxes on corporate income                          183.8        -11.2
    To government                                    174.6        -11.3
    To the rest of the world                           9.3          0.1
  Profits after tax with inventory valuation
    and capital consumption adjustments              690.7        -18.4
    Net dividends                                    390.0         -8.3
    Undistributed corporate profits with
      inventory valuation and capital
      consumption adjustments                        300.7        -10.1
USES OF PRIVATE ENTERPRISE INCOME                  4,046.5       -235.0
Net operating surplus                              2,396.3       -124.0
Income receipts on assets                          1,650.2       -110.9
  Interest                                         1,444.2       -114.5
  Dividend recepts from the rest of the world         85.4          3.9
  Reinvested earnings on U.S. direct
    investment abroad                                120.6         -0.4
SOURCES OF PRIVATE ENTERPRISE INCOME               4,046.5       -235.0

                                                    Account 3. Personal
                                                     Income and Outlay
                                                          Account

Personal current taxes                             1,051.2         -1.9
Personal outlays                                   7,668.5         -5.5
  Personal consumption expenditures                7,376.1         -9.2
  Personal interest payments                         197.2          2.5
  Personal current transfer payments                  95.3          1.3
    To government                                     59.5          0.9
    To the rest of the world (net)                    35.7          0.3
Personal saving                                      159.2        -24.0
PERSONAL TAXES, OUTLAYS, AND SAVING                8,878.9        -31.4
Compensation of employees, received                6,069.5         50.4
  Wage and salary disbursements                    4,976.3          1.7
    Domestic                                       4,973.3          1.9
    Rest of the world                                  2.9         -0.3
  Supplements to wages and salaries                1,093.2         48.7
    Employer contributions for employee
      pension and insurance funds                    729.6         49.2
    Employer contributions for government
      social insurance                               363.6         -0.5
Proprietors' income with inventory valuation
  and capital consumption adjustments                769.6        -28.1
Rental income of persons with capital
  consumption adjustment                             170.9         -2.1
Personal income receipts on assets                 1,334.6        -43.9
  Personal interest income                           946.7        -35.7
  Personal dividend income                           387.9         -8.3
Personal current transfer receipts                 1,282.7         -9.5
  Government social benefits                       1,248.9         -0.6
  From business (net)                                 33.7         -8.9
Less: Contributions for government social
  insurance                                          748.3         -2.0

PERSONAL INCOME                                    8,878.9        -31.4

                                                  Account 4. Government
                                                       Receipts and
                                                   Expenditures Account

Consumption expenditures                           1,609.2         13.8
Current transfer payments                          1,270.5         -0.6
  Government social benefits                       1,251.6         -0.7
    To persons                                     1,248.9         -0.6
    To the rest of the world                           2.7          0.0
  Other current transfer payments to the
    rest of the world (net)                           18.8          0.0
Interest payments                                    316.4         -2.9
Subsidies                                             38.2          0.0
Less: Wage accruals less disbursements                 0.0          0.0
Net government saving                               -279.5        -36.2
  Federal                                           -254.5        -14.5
  State and local                                    -25.0        -21.8
GOVERNMENT CURRENT EXPENDITURES AND NET
  SAVING                                           2,954.7        -26.0
Current tax receipts                               1,995.5        -10.7
  Personal current taxes                           1,051.2         -1.9
  Taxes on production and imports                    762.6          2.5
  Taxes on corporate income                          174.6        -11.3
  Taxes from the rest of the world                     7.1         -0.1
Contributions for government social insurance        748.3         -2.0
Income receipts on assets                            101.9        -14.2
  Interest and miscellaneous receipts                 99.8        -14.2
  Dividends                                            2.1          0.0
Current transfer receipts                            106.3          1.0
  From business (net)                                 46.7         -0.1
  From persons                                        59.5          0.9
Current surplus of government enterprises              2.8          0.0
GOVERNMENT CURRENT RECEIPTS                        2,954.7        -26.0

                                                    Account 5. Foreign
                                                   Transactions Current
                                                          Account

Exports of goods and services                      1,005.0         -1.8
Income receipts from the rest of the world           301.8          2.7
  Wage and salary receipts                             2.9         -0.3
  Income receipts on assets                          298.8          2.8
    Interest                                          92.8         -0.7
    Dividends                                         85.4          3.9
    Reinvested earnings on U.S. direct
      investment abroad                              120.6         -0.4
CURRENT RECEIPTS FROM THE REST OF THE WORLD        1,306.8          0.8
Imports of goods and services                      1,429.9         -3.2
Income payments to the rest of the world             274.7         -2.9
  Wage and salary payments                             8.4          0.0
  Income payments on assets                          266.3         -2.9
    Interest                                         218.1         -2.1
    Dividends                                         42.8          0.7
    Reinvested earnings on foreign direct
      investment in the United States                  5.4         -1.5
Current taxes and transfer payments to the
  rest of the world (net)                             59.8          0.5
  From persons (net)                                  35.7          0.3
  From government (net)                               14.4          0.1
  From business (net)                                  9.7          0.1
Balance on current account, national income
  and product accounts                              -457.7          6.4
CURRENT PAYMENTS TO THE REST OF THE WORLD
  AND BALANCE ON CURRENT ACCOUNT                   1,306.8          0.8

                                                    Account 6. Domestic
                                                      Capital Account

Gross domestic investment                          1,926.6          0.3
  Private fixed investment                         1,568.0        -15.9
  Government fixed investment                        347.4         10.3
  Change in private inventories                       11.2          5.8
Capital account transactions (net)                     1.3          0.0
Net lending or net borrowing (-), national
  income and product accounts                       -458.9          6.5
GROSS DOMESTIC INVESTMENT, CAPITAL ACCOUNT
  TRANSACTIONS, AND NET LENDING                    1,468.9          6.7
Net saving                                           180.3        -70.5
  Personal saving                                    159.2        -24.0
  Undistributed corporate profits with
    inventory valuation and capital
    consumption adjustments)                         300.7        -10.1
  Wage accruals less disbursements (private)           0.0          0.0
  Net government saving                             -279.5        -36.2
Plus: Consumption of fixed capital                 1,303.9         15.3
  Private                                          1,092.8         15.0
  Government                                         211.2          0.4
    General government                               178.0          0.4
    Government enterprises                            33.2          0.0
Equals: Gross saving                               1,484.3        -55.1
Statistical discrepancy                              -15.3         61.9
GROSS SAVING AND STATISTICAL DISCREPANCY           1,468.9          6.7

                                                    Account 7. Foreign
                                                   Transactions Capital
                                                         Account

BALANCE ON CURRENT ACCOUNT, NATIONAL INCOME
  AND PRODUCT ACCOUNTS                              -457.7          6.4
Capital account transactions (net)                     1.3          0.0
Net lending or net borrowing (-), national
  income and product accounts                       -458.9          6.5
CAPITAL ACCOUNT TRANSACTIONS (NET) AND NET
  LENDING, NATIONAL INCOME AND PRODUCT
  ACCOUNTS                                          -457.7          6.4

                                                          2003

                                                  Revised      Revision

                                                    Account 1. Domestic
                                                         Income and
                                                       Product Account

Compensation of employees, paid                    6,294.5         86.2
  Wage and salary accruals                         5,109.1          3.6
    Disbursements                                  5,109.1          3.6
    Wage accruals less disbursements                   0.0          0.0
  Supplements to wages and salaries                1,185.5         82.7
Taxes on production and imports                      798.1          9.4
Less: Subsidies                                       46.7         -1.5
Net operating surplus                              2,578.7       -136.7
  Private enterprises                              2,569.2       -141.3
  Current surplus of government enterprises            9.5          4.5
Consumption of fixed capital                       1,353.9         43.0
Gross domestic income                             10,978.5          3.6
Statistical discrepancy                               25.6         12.7
GROSS DOMESTIC PRODUCT                            11,004.0         16.1
Personal consumption expenditures                  7,760.9          3.5
  Durable goods                                      950.7          9.1
  Nondurable goods                                 2,200.1         -9.6
  Services                                         4,610.1          3.9
Gross private domestic investment                  1,665.8         -4.8
  Fixed investment                                 1,667.0         -6.0
    Nonresidential                                 1,094.7        -15.9
      Structures                                     261.6          2.4
      Equipment and software                         833.1        -18.2
    Residential                                      572.3          9.9
  Change in private inventories                       -1.2          1.2
Net exports of goods and services                   -498.1         -3.1
  Exports                                          1,046.2         -2.7
  Imports                                          1,544.3          0.5
Government consumption expenditures and gross
  investment                                       2,075.5         20.7
  Federal                                            752.2         -5.0
    National defense                                 496.4         -0.9
    Nondefense                                       255.7         -4.2
  State and local                                  1,323.3         25.7
GROSS DOMESTIC PRODUCT                            11,004.0         16.1

                                                     Account 2. Private
                                                      Enterprise Income
                                                           Account

Income payments on assets                          2,134.6
  Interest and miscellaneous payments              2,060.8
  Dividend payments to the rest of the world          61.6         24.1
  Reinvested earnings on foreign direct
    investment in the United States                   12.2        -24.7
Business current transfer payments (net)              77.7        -17.5
  To persons (net)                                    28.9        -17.0
  To government (net)                                 46.6         -0.2
  To the rest of the world (net)                       2.2         -0.4
Proprietors' income with inventory valuation
  and capital consumption adjustments                834.1        -12.8
Rental income of persons with capital
  consumption adjustment                             153.8        -10.4
Corporate profits with inventory valuation
  and capital consumption adjustments              1,021.1        -48.8
  Taxes on corporate income                          234.9         10.0
    To government                                    225.8          9.9
    To the rest of the world                           9.1          0.1
  Profits after tax with inventory valuation
    and capital consumption adjustments              786.2        -58.8
    Net dividends                                    395.3        -35.7
    Undistributed corporate profits with
      inventory valuation and capital
      consumption adjustments                        390.9        -23.2
USES OF PRIVATE ENTERPRISE INCOME                  4,221.4
Net operating surplus                              2,569.2       -141.3
Income receipts on assets                          1,652.2
  Interest                                         1,401.5
  Dividend recepts from the rest of the world         82.1         -2.3
  Reinvested earnings on U.S. direct
    investment abroad                                168.6         13.5
SOURCES OF PRIVATE ENTERPRISE INCOME               4,221.4

                                                    Account 3. Personal
                                                     Income and Outlay
                                                          Account

Personal current taxes                             1,001.9         10.5
Personal outlays                                   8,049.3          6.3
  Personal consumption expenditures                7,760.9          3.5
  Personal interest payments                         185.3         -0.1
  Personal current transfer payments                 103.1          2.9
    To government                                     64.9          1.8
    To the rest of the world (net)                    38.2          1.1
Personal saving                                      110.6        -62.9
PERSONAL TAXES, OUTLAYS, AND SAVING                9,161.8        -46.2
Compensation of employees, received                6,289.0         86.0
  Wage and salary disbursements                    5,103.6          3.4
    Domestic                                       5,100.5          3.5
    Rest of the world                                  3.0         -0.3
  Supplements to wages and salaries                1,185.5         82.7
    Employer contributions for employee
      pension and insurance funds                    808.9         84.9
    Employer contributions for government
      social insurance                               376.6         -2.2
Proprietors' income with inventory valuation
  and capital consumption adjustments                834.1        -12.8
Rental income of persons with capital
  consumption adjustment                             153.8        -10.4
Personal income receipts on assets                 1,322.7        -70.6
  Personal interest income                           929.9        -34.7
  Personal dividend income                           392.8        -35.9
Personal current transfer receipts                 1,335.4        -42.1
  Government social benefits                       1,306.4        -25.2
  From business (net)                                 28.9        -17.0
Less: Contributions for government social
  insurance                                          773.2         -3.6

PERSONAL INCOME                                    9,161.8        -46.2

                                                  Account 4. Government
                                                       Receipts and
                                                   Expenditures Account

Consumption expenditures                           1,717.1          8.5
Current transfer payments                          1,332.9        -24.6
  Government social benefits                       1,309.3        -25.1
    To persons                                     1,306.4        -25.2
    To the rest of the world                           2.8          0.0
  Other current transfer payments to the
    rest of the world (net)                           23.7          0.6
Interest payments                                    303.0         -9.1
Subsidies                                             46.7         -1.5
Less: Wage accruals less disbursements                 0.0          0.0
Net government saving                               -367.8         45.8
  Federal                                           -364.5         48.5
  State and local                                     -3.2         -2.6
GOVERNMENT CURRENT EXPENDITURES AND NET
  SAVING                                           3,032.0         19.2
Current tax receipts                               2,033.8         31.0
  Personal current taxes                           1,001.9         10.5
  Taxes on production and imports                    798.1          9.4
  Taxes on corporate income                          225.8          9.9
  Taxes from the rest of the world                     8.1          1.3
Contributions for government social insurance        773.2         -3.6
Income receipts on assets                            104.0        -14.3
  Interest and miscellaneous receipts                101.4        -14.7
  Dividends                                            2.5          0.3
Current transfer receipts                            111.5          1.7
  From business (net)                                 46.6         -0.2
  From persons                                        64.9          1.8
Current surplus of government enterprises              9.5          4.5
GOVERNMENT CURRENT RECEIPTS                        3,032.0         19.2

                                                    Account 5. Foreign
                                                   Transactions Current
                                                          Account

Exports of goods and services                      1,046.2         -2.7
Income receipts from the rest of the world           329.0         11.7
  Wage and salary receipts                             3.0         -0.3
  Income receipts on assets                          326.0         12.0
    Interest                                          75.3          0.7
    Dividends                                         82.1         -2.3
    Reinvested earnings on U.S. direct
      investment abroad                              168.6         13.5
CURRENT RECEIPTS FROM THE REST OF THE WORLD        1,375.2          9.1
Imports of goods and services                      1,544.3          0.5
Income payments to the rest of the world             273.9          0.3
  Wage and salary payments                             8.5         -0.1
  Income payments on assets                          265.4          0.3
    Interest                                         191.5          0.8
    Dividends                                         61.6         24.1
    Reinvested earnings on foreign direct
      investment in the United States                 12.2        -24.7
Current taxes and transfer payments to the
  rest of the world (net)                             67.9          0.1
  From persons (net)                                  38.2          1.1
  From government (net)                               18.4         -0.7
  From business (net)                                 11.3         -0.3
Balance on current account, national income
  and product accounts                              -510.9          8.1
CURRENT PAYMENTS TO THE REST OF THE WORLD
  AND BALANCE ON CURRENT ACCOUNT                   1,375.2          9.1

                                                    Account 6. Domestic
                                                      Capital Account

Gross domestic investment                          2,024.2          7.4
  Private fixed investment                         1,667.0         -6.0
  Government fixed investment                        358.5         12.2
  Change in private inventories                       -1.2          1.2
Capital account transactions (net)                     3.1          1.6
Net lending or net borrowing (-), national
  income and product accounts                       -514.0          6.5
GROSS DOMESTIC INVESTMENT, CAPITAL ACCOUNT
  TRANSACTIONS, AND NET LENDING                    1,513.3         15.5
Net saving                                           133.8        -40.2
  Personal saving                                    110.6        -62.9
  Undistributed corporate profits with
    inventory valuation and capital
    consumption adjustments)                         390.9        -23.2
  Wage accruals less disbursements (private)           0.0          0.0
  Net government saving                             -367.8         45.8
Plus: Consumption of fixed capital                 1,353.9         43.0
  Private                                          1,135.9         43.2
  Government                                         218.1         -0.1
    General government                               183.6         -0.1
    Government enterprises                            34.5          0.0
Equals: Gross saving                               1,487.7          0.8
Statistical discrepancy                               25.6         12.7
GROSS SAVING AND STATISTICAL DISCREPANCY           1,513.3         15.5

                                                    Account 7. Foreign
                                                   Transactions Capital
                                                         Account

BALANCE ON CURRENT ACCOUNT, NATIONAL INCOME
  AND PRODUCT ACCOUNTS                              -510.9          8.1
Capital account transactions (net)                     3.1          1.7
Net lending or net borrowing (-), national
  income and product accounts                       -514.0          6.5
CAPITAL ACCOUNT TRANSACTIONS (NET) AND NET
  LENDING, NATIONAL INCOME AND PRODUCT
  ACCOUNTS                                          -510.9          8.1

Table 1. Real GDP and Its Major Components: Change From 2000:IV to
2004:I

[Billions of chained (2000) dollars, seasonally adjusted annual rates]

                                2000:IV        Previously published

                                            2004:I        Change for
                                                        2000:IV-2004:I

                                                      Dollars   Percent
                                                                (annual
                                                                 rate)

    Gross domestic product       9,887.7   10,702.7     814.4       2.5
Personal consumption
  expenditures                   6,825.0    7,555.8     730.8       3.2
  Durable goods                    865.4    1,060.7     195.3       6.5
  Nondurable goods               1,972.7    2,198.6     225.9       3.4
  Services                       3,986.8    4,307.2     320.4       2.4
Gross private domestic
  investment                     1,732.7    1,753.4      20.7       0.4
  Fixed investment               1,689.4    1,721.7      32.3       0.6
    Nonresidential               1,247.9    1,184.6     -63.3      -1.6
      Structures                   320.6      232.4     -88.2      -9.4
      Equipment and software       927.3      960.7      33.4       1.1
    Residential                    441.6      532.5      90.9       5.9
  Change in private
    inventories                     43.5       25.5     -18.0
Net exports of goods and
  services                        -397.2     -535.6    -138.4
  Exports                        1,112.3    1,102.8      -9.5      -0.3
    Goods                          798.9      770.8     -28.1      -1.1
    Services                       313.4      331.8      18.4       1.8
  Imports                        1,509.5    1,638.4     128.9       2.6
    Goods                        1,272.7    1,397.9     125.2       2.9
    Services                       236.8      242.7       5.9       0.8
Government consumption
  expenditures and gross
  investment                     1,727.1    1,924.7     197.6       3.4
  Federal                          577.2      730.2     153.0       7.5
    National defense               371.5      489.6     118.1       8.9
    Nondefense                     205.6      240.6      35.0       5.0
  State and local                1,149.9    1,195.1      45.2       1.2
Addenda:
  Final sales of domestic
    product                      9,844.3   10,671.2     826.9       2.5
  Gross domestic purchases      10,284.7   11,233.0     948.3       2.8
  Gross national product         9,941.6   10,760.7     819.1       2.5
  Gross domestic income          9,991.6   10,717.8     726.2       2.2

                                           Revised

                                 2004:I       Change for
                                             2000:IV-2004:1

                                           Dollars   Percent
                                                     (annual
                                                      rate)

    Gross domestic product      10,697.5     809.8       2.5
Personal consumption
  expenditures                   7,543.0     718.0       3.1
  Durable goods                  1,075.5     210.1       6.9
  Nondurable goods               2,187.3     214.6       3.2
  Services                       4,291.7     304.9       2.3
Gross private domestic
  investment                     1,764.5      31.8       0.6
  Fixed investment               1,721.4      32.0       0.6
    Nonresidential               1,173.0     -74.9      -1.9
      Structures                   237.7     -82.9      -8.8
      Equipment and software       943.7      16.4       0.5
    Residential                    542.5     100.9       6.5
  Change in private
    inventories                     40.0      -3.5
Net exports of goods and
  services                        -550.1    -152.9
  Exports                        1,095.4     -16.9      -0.5
    Goods                          767.2     -31.7      -1.2
    Services                       328.1      14.7       1.4
  Imports                        1,645.5     136         2.7
    Goods                        1,394.1     121.4       2.8
    Services                       252.4      15.6       2.0
Government consumption
  expenditures and gross
  investment                     1,935.8     208.7       3.6
  Federal                          713.3     136.0       6.7
    National defense               477.6     106.1       8.0
    Nondefense                     235.4      29.8       4.2
  State and local                1,222.4      72.5       1.9
Addenda:
  Final sales of domestic
    product                     10,655.8     811.5       2.5
  Gross domestic purchases      11,241.9     957.2       2.8
  Gross national product        10,766.7     925.1       2.5
  Gross domestic income         10,660.5     668.9       2.0

                                 Revision in change

                                Dollars    Percentage
                                             points

    Gross domestic product        -4.6          0.0
Personal consumption
  expenditures                   -12.8         -0.1
  Durable goods                   14.8          0.4
  Nondurable goods               -11.3         -0.2
  Services                       -15.5         -0.1
Gross private domestic
  investment                      11.1          0.2
  Fixed investment                -0.3          0.0
    Nonresidential               -11.6         -0.3
      Structures                   5.3          0.6
      Equipment and software     -17.0         -0.6
    Residential                   10.0          0.6
  Change in private
    inventories                   14.5
Net exports of goods and
  services                       -14.5
  Exports                         -7.4         -0.2
    Goods                         -3.6         -0.1
    Services                      -3.7         -0.4
  Imports                          7.1          0.1
    Goods                         -3.8         -0.1
    Services                       9.7          1.2
Government consumption
  expenditures and gross
  investment                      11.1          0.2
  Federal                        -16.9         -0.8
    National defense             -12.0         -0.9
    Nondefense                    -5.2         -0.8
  State and local                 27.3          0.7
Addenda:
  Final sales of domestic
    product                      -15.4          0.0
  Gross domestic purchases         8.9          0.0
  Gross national product           0.0          0.0
  Gross domestic income          -57.3         -0.2

NOTE: Chained (2000) dollar series are calculated as the product of the
chain-type quantity index and the 2000 current-dollar value of the
corresponding series, divided by 100. Because the formula for the
chain-type quantity indexes uses the weights of more than one period,
the corresponding chained-dollar estimates are usually not additive.

Table 2. Chain-Type Price Indexes: Change From 2000:IV to 2004:I

                                               Percent change for
                                                 2000:IV-2004:I
                                                 (annual rate)

                                             Previously     Revised
                                             published

Gross domestic product                              1.9        2.0
  Less: Exports of goods and services               1.0        1.0
  Plus: Imports of goods and services               0.6        0.4
Equals: Gross domestic purchases                    1.8        1.9
  Personal consumption expenditures                 1.8        1.8
    Durable goods                                  -3.0       -2.8
    Nondurable goods                                1.5        1.5
    Services                                        2.9        3.0
  Gross private domestic investment                 1.0        0.9
    Fixed investment                                1.1        1.0
      Nonresidential                               -0.3       -0.4
        Structures                                  3.0        3.0
        Equipment and software                     -1.3       -1.6
      Residential                                   4.1        4.0
    Change in private inventories
  Government consumption expenditures and
    gross investment                                2.6        2.8
    Federal                                         2.6        3.1
      National defense                              2.6        3.3
      Nondefense                                    2.6        2.6
    State and local                                 2.6        2.6
Addenda:
  Final sales of domestic product                   1.9        2.0
  Gross national product                            1.9        2.0

                                             Revision in
                                                change
                                             (percentage
                                               points)

Gross domestic product                               0.1
  Less: Exports of goods and services                0.0
  Plus: Imports of goods and services               -0.2
Equals: Gross domestic purchases                     0.1
  Personal consumption expenditures                  0.0
    Durable goods                                    0.2
    Nondurable goods                                 0.0
    Services                                         0.1
  Gross private domestic investment                 -0.1
    Fixed investment                                -0.1
      Nonresidential                                -0.1
        Structures                                   0.0
        Equipment and software                      -0.3
      Residential                                   -0.1
    Change in private inventories
  Government consumption expenditures and
    gross investment                                 0.2
    Federal                                          0.5
      National defense                               0.7
      Nondefense                                     0.0
    State and local                                  0.0
Addenda:
  Final sales of domestic product                    0.1
  Gross national product                             0.1

Table 3. Revisions to Contributions to Percent Change in Real GDP

                                                        2001

                                        2000     Previously    Revised
                                                 published
Percent change at annual rate:
    Gross domestic product                3.7          0.5       0.8
Percentage points at annual rates:
  Personal consumption expenditures      3.17         1.68      1.74
    Durable goods                        0.63         0.36      0.37
    Nondurable goods                     0.74         0.37      0.40
    Services                             1.80         0.96      0.97
  Gross private domestic investment      0.99        -1.47     -1.39
    Fixed investment                     1.09        -0.54     -0.50
      Nonresidential                     1.06        -0.56     -0.52
        Structures                       0.21        -0.08     -0.07
        Equipment and software           0.85        -0.47     -0.44
      Residential                        0.03         0.02      0.02
    Change in private inventories       -0.10        -0.93     -0.88
  Net exports of goods and services     -0.86        -0.19     -0.20
    Exports                              0.93        -0.58     -0.60
      Goods                              0.84        -0.48     -0.48
      Services                           0.09        -0.10     -0.12
    Imports                             -1.79         0.39      0.40
      Goods                             -1.55         0.39      0.39
      Services                          -0.25        -0.01      0.01
  Government consumption expenditures
    and gross investment                 0.36         0.48      0.60
    Federal                              0.05         0.22      0.23
      National defense                  -0.02         0.15      0.15
      Nondefense                         0.07         0.07      0.08
    State and local                      0.31         0.26      0.37

                                          2001             2002

                                        Revision    Previously   Revised
                                                    published
Percent change at annual rate:
    Gross domestic product                   0.3          2.2       1.9
Percentage points at annual rates:
  Personal consumption expenditures         0.06         2.38      2.14
    Durable goods                           0.01         0.55      0.56
    Nondurable goods                        0.03         0.60      0.51
    Services                                0.01         1.23      1.08
  Gross private domestic investment         0.08        -0.18     -0.37
    Fixed investment                        0.04        -0.60     -0.80
      Nonresidential                        0.04        -0.82     -1.02
        Structures                          0.01        -0.59     -0.57
        Equipment and software              0.03        -0.23     -0.45
      Residential                           0.00         0.23      0.22
    Change in private inventories           0.05         0.41      0.42
  Net exports of goods and sarvicas        -0.01        -0.70     -0.70
    Exports                                -0.02        -0.24     -0.24
      Goods                                 0.00        -0.29     -0.29
      Services                             -0.02         0.04      0.05
    Imports                                 0.01        -0.45     -0.46
      Goads                                 0.00        -0.42     -0.42
      Services                              0.02        -0.03     -0.04
  Government consumption expenditures
    and gross investment                    0.12         0.69      0.79
    Federal                                 0.01         0.48      0.46
      National defense                      0.00         0.35      0.30
      Nondefense                            0.01         0.14      0.16
    State and local                         0.11         0.21      0.33

                                          2002             2003

                                        Revision   Previously    Revised
                                                    published
Percent change at annual rate:
    Gross domestic product                  -0.3          3.1       3.0
Percentage points at annual rates:
  Personal consumption expenditures        -0.24         2.22      2.29
    Durable goods                           0.01         0.61      0.63
    Nondurable goods                       -0.09         0.76      0.73
    Services                               -0.15         0.85      0.93
  Gross private domestic investment        -0.19         0.64      0.66
    Fixed investment                       -0.20         0.67      0.76
      Nonresidential                       -0.20         0.30      0.33
        Structures                          0.02        -0.12     -0.15
        Equipment and software             -0.22         0.42      0.48
      Residential                          -0.01         0.36      0.43
    Change in private inventories           0.01        -0.03     -0.10
  Net exports of goods and sarvicas         0.00        -0.35     -0.43
    Exports                                 0.00         0.20      0.18
      Goods                                 0.00         0.13      0.14
      Services                              0.01         0.07      0.04
    Imports                                -0.01        -0.55     -0.61
      Goads                                 0.00        -0.55     -0.54
      Services                             -0.01         O.00     -0.07
  Government consumption expenditures
    and gross investment                    0.10         0.62      0.52
    Federal                                -0.02         0.56      0.43
      National defense                     -0.05         0.44      0.38
      Nondefense                            0.02         0.12      0.06
    State and local                         0.12         0.08      0.09

                                          2003

                                        Revision
Percent change at annual rate:
    Gross domestic product                  -0.1
Percentage points at annual rates:
  Personal consumption expenditures         0.07
    Durable goods                           0.02
    Nondurable goods                       -0.03
    Services                                0.08
  Gross private domestic investment         0.02
    Fixed investment                        0.09
      Nonresidential                        0.03
        Structures                         -0.03
        Equipment and software              0.06
      Residential                           0.07
    Change in private inventories          -0.07
  Net exports of goods and sarvicas        -0.08
    Exports                                -0.02
      Goods                                 0.01
      Services                             -0.03
    Imports                                -0.06
      Goads                                 0.01
      Services                             -0.07
  Government consumption expenditures
    and gross investment                   -0.10
    Federal                                -0.13
      National defense                     -0.06
      Nondefense                           -0.06
    State and local                         0.03

Table 4. Revisions to Percent Change in Real GDP

[Percent change from preceding year]
                                                          2001

                                           2000   Previously   Revised
                                                  published

    Gross domestic product                  3.7          0.5       0.8
Personal consumption expenditures           4.7          2.5       2.5
  Durable goods                             7.3          4.1       4.3
  Nondurable goods                          3.8          1.9       2.0
  Services                                  4.5          2.4       2.4
Gross private domestic fixed investment     6.5         -3.2      -3.0
  Nonresidential                            8.7         -4.5      -4.2
    Structures                              6.8         -2.5      -2.3
    Equipment and software                  9.4         -5.2      -4.9
  Residential                               0.8          0.4       0.4
Change in private inventories
Net exports of goods and services
  Exports                                   8.7         -5.2      -5.4
    Goods                                  11.2         -6.1      -6.1
    Services                                2.9         -3.1      -3.7
  Imports                                  13.1         -2.6      -2.7
    Goods                                  13.5         -3.2      -3.2
    Services                               11.1          0.4      -0.3
  Government consumption expenditures
  and gross investment                      2.1          2.8       3.4
  Federal                                   0.9          3.7       3.9
    National defense                       -0.5          3.9       3.9
    Nondefense                              3.5          3.5       3.9
  State and local                           2.7          2.2       3.2

                                            2001        2002

                                          Revision   Previously
                                                     published

    Gross domestic product                     0.3          2.2
Personal consumption expenditures              0.0          3.4
  Durable goods                                0.2          6.5
  Nondurable goods                             0.1          3.0
  Services                                     0.0          3.0
Gross private domestic fixed investment        0.2         -3.7
  Nonresidential                               0.3         -7.2
    Structures                                 0.2        -18.4
    Equipment and software                     0.3         -2.8
  Residential                                  0.0          4.9
Change in private inventories
Net exports of goods and services
  Exports                                     -0.2         -2.4
    Goods                                      0.0         -4.0
    Services                                  -0.6          1.4
  Imports                                     -0.1          3.3
    Goods                                      0.0          3.7
    Services                                  -0.7          1.4
  Government consumption expenditures
  and gross investment                         0.6          3.8
  Federal                                      0.2          7.9
    National defense                           0.0          8.9
    Nondefense                                 0.4          6.2
  State and local                              1.0          1.8

                                                 2002

                                          Revised   Revision

    Gross domestic product                    1.9       -0.3
Personal consumption expenditures             3.1       -0.3
  Durable goods                               6.5        0.0
  Nondurable goods                            2.6       -0.4
  Services                                    2.6       -0.4
Gross private domestic fixed investment      -4.9       -1.2
  Nonresidential                             -8.9       -1.7
    Structures                              -17.8        0.6
    Equipment and software                   -5.5       -2.7
  Residential                                 4.8       -0.1
Change in private inventories
Net exports of goods and services
  Exports                                    -2.3        0.1
    Goods                                    -4.1       -0.1
    Services                                  1.8        0.4
  Imports                                     3.4        0.1
    Goods                                     3.7        0.0
    Services                                  1.9        0.5
  Government consumption expenditures
  and gross investment                        4.4        0.6
  Federal                                     7.5       -0.4
    National defense                          7.7       -1.2
    Nondefense                                7.1        0.9
  State and local                             2.8        1.0

                                                  2003

                                          Previously   Revised
                                          published

    Gross domestic product                       3.1       3.0
Personal consumption expenditures                3.1       3.3
  Durable goods                                  7.4       7.4
  Nondurable goods                               3.8       3.7
  Services                                       2.0       2.2
Gross private domestic fixed investment          4.4       5.1
  Nonresidential                                 3.0       3.3
    Structures                                  -4.6      -5.6
    Equipment and software                       5.5       6.4
  Residential                                    7.5       8.8
Change in private inventories
Net exports of goods and services
  Exports                                        2.0       1.9
    Goods                                        1.9       2.2
    Services                                     2.3       1.4
  Imports                                        4.0       4.4
    Goods                                        4.8       4.7
    Services                                    -0.1       3.1
  Government consumption expenditures
  and gross investment                           3.3       2.8
  Federal                                        8.7       6.6
    National defense                            10.6       9.0
    Nondefense                                   5.3       2.4
  State and local                                0.5       0.7

                                            2003

                                          Revision

    Gross domestic product                    -0.1
Personal consumption expenditures              0.2
  Durable goods                                0.0
  Nondurable goods                            -0.1
  Services                                     0.2
Gross private domestic fixed investment        0.7
  Nonresidential                               0.3
    Structures                                -1.0
    Equipment and software                     0.9
  Residential                                  1.3
Change in private inventories
Net exports of goods and services
  Exports                                     -0.1
    Goods                                      0.3
    Services                                  -0.9
  Imports                                      0.4
    Goods                                     -0.1
    Services                                   3.2
  Government consumption expenditures
  and gross investment                        -0.5
  Federal                                     -2.1
    National defense                          -1.6
    Nondefense                                -2.9
  State and local                              0.2

Table 5. GDP, Real GDP, the GDP Price Index, and the Gross Domestic
Purchases Price Index: Revisions to Percent Change From Preceding
Quarter

[Percent change at annual rates; based on seasonally adjusted annual
rates]

                           GDP                          Real GDP

            Previously                           Previously
            published     Revised    Revision    published     Revised

2000:IV            3.8                                  2.1
2001:I             2.9        2.8        -0.1          -0.2       -0.5
     II            2.6        4.4         1.8          -0.6        1.2
     III           0.3        0.2        -0.1          -1.3       -1.4
     IV            3.9        3.6        -0.3           2.0        1.6
2002:I             5.4        4.5        -0.9           4.7        3.4
     II            3.9        4.2         0.3           1.9        2.4
     III           4.4        3.9        -0.5           3.4        2.6
     IV            3.1        2.7        -0.4           1.3        0.7
2003:I             4.3        4.9         0.6           2.0        1.9
     II            4.2        5.3         1.1           3.1        4.1
     III          10.0        8.8        -1.2           8.2        7.4
     IV            5.7        5.7         0.0           4.1        4.2
2004:I             6.9        7.4         0.5           3.9        4.5

                                                               Gross
                                                              domestic
                                                              purchase
                                                                price
            Real GDP             GDP price index                index

                        Previously                           Previously
            Revision    published     Revised    Revision    published

2000:IV                        1.8                                  1.8
2001:I          -0.3           3.2        3.3         0.1           2.6
     II          1.8           3.2        3.1        -0.1           2.3
     III        -0.1           1.6        1.6         0.0           1.0
     IV         -0.4           1.6        1.7         0.1           0.5
2002:I          -1.3           1.1        1.4         0.3           1.0
     II          0.5           1.5        1.5         0.0           2.4
     III        -0.8           1.5        1.7         0.2           1.6
     IV         -0.6           1.7        2.0         0.3           1.7
2003:I          -0.1           2.3        2.7         0.4           3.4
     II          1.0           1.1        1.1         0.0           0.4
     III        -0.8           1.6        1.4        -0.2           1.8
     IV          0.1           1.5        1.6         0.1           1.3
2004:I           0.6           2.8        2.8         0.0           3.5

               Gross domestic
              purchases price
                   index

            Revised    Revision

2000:IV
2001:I          2.7         0.1
     II         2.3         0.0
     III        1.0         0.0
     IV         0.6         0.1
2002:I          1.2         0.2
     II         2.5         0.1
     III        1.8         0.2
     IV         1.9         0.2
2003:I          3.7         0.3
     II         0.4         0.0
     III        1.7        -0.1
     IV         1.4         0.1
2004:I          3.4        -0.1

Table 6. NIPA Revisions: Selected Components Detail and Major Source
Data

                                           Billions of
                                             dollars

                                            Revision in
                                              level

             NIPA component                2001    2002

    Gross domestic product                 27.2      6.2
Personal consumption expenditures           9.6     -9.2
  Goods                                     5.3     -1.0
    Motor vehicles and parts                1.0      8.0
      Of which:
        Net purchases of used autos
          and used light trucks             0.9      6.3
    Goods other than motor vehicles
      and parts                             4.3     -9.0
      Of which:
        Furniture and household
          equipment                         0.1     -3.8
        Food                                3.3      0.2
        Clothing and shoes                  0.2     -2.3
        Other nondurable goods              1.3     -0.9
  Services                                  4.5     -8.2
    Of which:
      Housing                               0.0      0.2
        Of which:
          Tenant-occupied nonfarm
            dwellings--rent                -0.4     -0.3
      Household operation                   1.6      0.8
        Of which:
          Gas                              -0.3     -0.2
          Water and other sanitary
            services                        0.6      1.8
      Transportation                       -1.2     -4.8
        Of which:
          Repair, greasing,
            washing, parking,
            storage, rental, and
            leasing                         0.0     -1.1
          Airline                          -0.7     -2.4
      Medical care                          3.9      7.6
        Of which:
          Hospitals and nursing
            homes                           3.6      6.0
      Other services                       -0.2     -8.2
        Of which:
          Personal business                -2.5    -11.9
            Of which:
              Expense of handling
                life insurance and
                pension plans              -2.7     -9.8
              Legal services                0.0      0.6
          Net foreign travel by
            U.S. residents                  0.0      0.1
Gross private domestic investment           7.1    -10.0
  Fixed investment                          2.7    -15.9
    Nonresidential                          2.7    -16.3
      Structures                            0.5      5.3
        Of which:
          Commercial and health
            care                            0.9      1.7
          Power and communication           0.0     -0.7
            Of which:
              Electric                      0.0     -1.4
              Communication                 0.0      0.0
          Mining exploration,
            shafts, and wells               0.0      3.5
            Of which:
              Petroleum and
                natural gas                 0.0      3.2
      Equipment and software                2.2    -21.5
        Of which:
          Information processing
            equipment and software          0.6    -20.8
            Of which:
              Software                      1.3     -0.2
              Communication
                equipment                  -0.8     -7.8
          Industrial equipment              0.5      1.1
          Transportation equipment          0.4     -2.0
            Of which:
              Trucks, buses, and
                truck trailers              0.4     -1.4
    Residential                             0.1      0.4
      Of which:
        Structures                          0.1      0.5
          Of which:
            Single-family
              structures                    0.0      0.0
  Change in private inventories             4.4      5.8
    Farm                                   -0.1      1.9
    Nonfarm                                 4.5      4.0
      Change in book value                  2.1      2.6
        Of which:
          Mining, utilities, and
            construction                   -0.4     -1.9
          Wholesale trade                   1.5      0.2
            Of which:
            Merchant wholesale
              trade                         1.4      0.1
          Retail trade                      0.6      6.3
            Of which:
            Motor vehicle dealers           0.2      5.6
      Inventory valuation adjustment        2.3      1.4
Net exports of goods and servlsas          -0.5      1.4
  Exports                                  -2.3     -1.8
    Goods                                  -0.3     -0.8
    Services                               -2.0     -1.1
  Imports                                  -1.9     -0.2
    Goods                                  -0.1     -0.7
    Services                               -1.7     -2.5
Government consumption expenditures and
  gross investment                         10.9     24.1
    Federal government                      0.0      1.3
      Of which:
        Nondefense                          0.4      2.2
    State and local government             11.0     22.7
      Consumption expenditures              3.7     11.9
        Of which:
          Nondurable goods                  2.1      5.9
          Services                          5.2     15.3
      Gross investment                      7.2     10.9
        Of which:
          Structures                        6.6     10.1
Gross domestic product                     27.2      6.2
Less: Statistical discrepancy (2)          22.6     61.9
Equals: Gross domestic income               4.6    -55.7
  Of which:
    Compensation of employees, paid         1.8     50.6
    Net operating surplus                 -10.5   -124.1
    Consumption of fixed capital           14.6     15.3
      Of which:
        Private                            14.5     15.0
          Domestic business                10.1     10.0
            Capital consumption
              allowances                   -2.4    -50.3
            Less: CCAdj                   -12.6    -60.5
          Households and
            institutions                    4.3      5.0
Plus: Income receipts from the rest of
  the world                                 3.4      2.7
Less: Income payments to the rest of
  the world                                -5.0     -2.9
Equals: Gross national income              13.1    -50.1
Less: Consumption of fixed capital         14.6     15.3
    Equals: National income                -1.4    -65.4
Compensation of employees                   1.7     50.4
  Wage and salary accruals                 -0.1      1.7
  Supplements to wages and salaries         1.7     48.7
    Employer contributions for
      employee pension and insurance
      funds                                 0.1     49.2
    Employer contributions for
      government social insurance           1.7     -0.5
Proprietors' income with IVA and CCAdj      1.3    -28.1
  Farm                                     -5.3     -4.6
    Of which:
      Proprietors' income with IVA         -5.4     -4.7
  Nonfarm                                   6.6    -23.5
    Of which:
      Proprietors' income                   2.6     -6.6
      CCAdj                                 3.8    -16.9
Rental income of persons with CCAdJ         4.3     -2.1
  Of which:
    Rental income of persons                4.3     -2.1
Corporate profits with IVA and CCAdj       -3.1    -29.6
  Profits before tax                       11.1     13.0
    Domestic industries                     2.9      8.6
      Of which:
        Financial                           2.0     21.1
        Utilities                           0.6    -10.7
        Manufacturing                      -3.5    -22.9
        Information                         1.5      8.9
        Other nonfinancial                  0.5      8.4
    Rest of the world                       8.2      4.4
  IVA                                       2.2      1.0
  CCAdj                                   -16.4    -43.7
Net interest and miscellaneous payments    -2.1    -49.5
  Of which:
    Net interest (3)                       -1.6    -48.5
      Monetary interest paid               -5.9   -153.7
        Of which:
          Domestic business                -9.3   -155.6
            Of which:
              Financial
                corporations               -9.2   -115.4
              Nonfinancial                  0.4     -7.8
                corporations
              Sole proprietorship
                and partnerships           -0.2    -31.8
      Less: Monetary interest
        received                           -5.9   -153.7
        Of which:
          Domestic business                -6.1   -111.1
            Of which:
              Financial
                corporations               -7.7   -127.2
              Nonfinancial
                corporations                1.5     16.6
              Persons                       6.6    -29.0
      Imputed interest paid                -0.2    -11.6
        Of which:
          Depositor and insurance
            services (paid by
            domestic financial
            corporate business)             1.2     -8.8
            Of which:
              Life insurance
                carriers                    0.2     -5.0
      Less: Imputed interest received      -0.2    -11.6
        Of which:
          Depositor and insurance
            services                        0.3    -11.1
            Of which:
              Persons (from life
                insurance
                carriers)                   0.2     -5.0
Taxes on production and imports            -1.2      2.5
  Of which:
    State and local                        -1.0      2.8
Less: Subsidies                             0.0      0.0
Business current transfer payments
  (net)                                     0.3     -8.9
  Of which:
    Payments to persons (net)               0.1     -8.9
Current surplus of government
  enterprises                              -2.6      0.0
  Of which:
    Federal                                -1.4      2.5
Addenda:
Gross national product                     35.7     11.8
Gross saving                               -0.4    -55.1
Personal income                            11.0    -31.4
  Compensation of employees, received       1.7     50.4
  Proprietors' income with IVA and
    CCAdj                                   1.3    -28.1
  Rental income of persons with CCAdj       4.3     -2.1
  Personal income receipts on assets        5.1    -43.9
    Personal interest income                7.3    -35.7
    Personal dividend income               -2.2     -8.3
  Personal current transfer receipts        1.3     -9.5
    Government social benefits              1.3     -0.6
    Other current transfer receipts,
      from business (net)                   0.1     -8.9
                                            2.6     -2.0
  Less: Contributions for government
    social insurance
Less: Personal current taxes               -6.4     -1.9
  Of which:
    Federal                                -5.5      0.1
Equals: Disposable personal income         17.4    -29.5
Less: Personal outlays                     12.3     -5.5
  Of which:
    Personal consumption expenditures       9.6     -9.2
Equals: Personal saving                     5.1    -24.0

                                             Billions of
                                              dollars

                                           Revi-
                                           sion
                                            in
                                           level    Revised
                                                     2003
             NIPA component                 2003     level

    Gross domestic product                  16.1   11,004.0
Personal consumption expenditures            3.5    7,760.9
  Goods                                     -0.5    3,150.8
    Motor vehicles and parts                16.1      440.1
      Of which:
        Net purchases of used autos
          and used light trucks             14.6      107.4
    Goods other than motor vehicles
      and parts                            -16.6    2,710.7
      Of which:
        Furniture and household
          equipment                         -6.2      328.0
        Food                                 0.4    1,064.5
        Clothing and shoes                  -4.0      307.2
        Other nondurable goods              -4.0      620.1
  Services                                   3.9    4,610.1
    Of which:
      Housing                              -10.1    1,188.4
        Of which:
          Tenant-occupied nonfarm
            dwellings--rent                 -9.7      262.3
      Household operation                    5.4      431.3
        0f which:
          Gas                                3.2       51.2
          Water and other sanitary
            services                         3.5       58.2
      Transportation                         0.4      294.0

        Of which:
          Repair, greasing,
            washing, parking,
            storage, rental, and
            leasing                          3.3      186.2
          Airline                           -0.8       30.3
      Medical care                          -1.3    1,301.1
        Of which:
          Hospitals and nursing
            homes                            0.0      616.8
      Other services                        11.6    1,078.1
        Of which:
          Personal business                  0.7      577.7
            Of which:
              Expense of handling
                life insurance and
                pension plans               -3.6       91.5
              Legal services                 5.6       77.3
          Net foreign travel by
            U.S. residents                   5.8       -7.5
Gross private domestic investment           -4.8    1,665.8
  Fixed investment                          -6.0    1,667.0
    Nonresidential                         -15.9    1,094.7
      Structures                             2.4      261.6
        Of which:
          Commercial and health
            care                             3.2      111.6
          Power and communication           -8.7       40.3
            Of which:
              Electric                      -4.8       19.7
              Communication                 -3.7       12.4
          Mining exploration,
            shafts, and wells                6.1       35.6
            Of which:
              Petroleum and
                natural gas                  5.7       34.0
      Equipment and software               -18.2      833.1
        Of which:
          Information processing
            equipment and software         -32.6      431.2
            Of which:
              Software                     -15.3      165.8
              Communication
                equipment                  -11.3       89.7
          Industrial equipment               6.2      139.8
          Transportation equipment           5.3      126.6
            Of which:
              Trucks, buses, and
                truck trailers               5.5       69.1
    Residential                              9.9      572.3
      Of which:
        Structures                          10.0      564.3
          Of which:
            Single-family
              structures                     8.4      310.6
  Change in private inventories              1.2       -1.2
    Farm                                     2.6        0.3
    Nonfarm                                 -1.4       -1.5
      Change in book value                   1.5       16.9
        Of which:
          Mining, utilities, and
            construction                     3.0        2.8
          Wholesale trade                    2.2        5.8
            Of which:
            Merchant wholesale
              trade                          2.1        6.8
          Retail trade                      -3.7       13.1
            Of which:
            Motor vehicle dealers           -3.2        4.3
      Inventory valuation adjustment        -2.8      -18.3
Net exports of goods and servlsas           -3.1     -498.1
  Exports                                   -2.7    1,046.2
    Goods                                    0.9      726.4
    Services                                -3.6      319.8
  Imports                                    0.5    1,544.3
    Goods                                   -1.3    1,282.0
    Services                                 1.8      262.3
Government consumption expenditures and
  gross investment                          20.7    2,075.5
    Federal government                      -5.0      752.2
      Of which:
        Nondefense                          -4.2      255.7
    State and local government              25.7    1,323.3
      Consumption expenditures              12.9    1,058.5
        Of which:
          Nondurable goods                   6.7      155.3
          Services                          21.9      316.5
      Gross investment                      12.9      264.9
        Of which:
          Structures                        11.6      213.4
Gross domestic product                      16.1   11,004.0
Less: Statistical discrepancy (2)           12.7       25.6
Equals: Gross domestic income                3.6   10,978.5
  Of which:
    Compensation of employees, paid         86.2    6,294.5
    Net operating surplus                 -136.7    2,578.7
    Consumption of fixed capital            43.0    1,353.9
      Of which:
        Private                             43.2    1,135.9
          Domestic business                 34.4      942.6
            Capital consumption
              allowances                   -46.4    1,225.6
            Less: CCAdj                    -80.8      283.0
          Households and
            institutions                     8.8      193.3
Plus: Income receipts from the rest of
  the world                                 11.7      329.0
Less: Income payments to the rest of
  the world                                  0.3      273.9
Equals: Gross national income               15.0   11,033.6
Less: Consumption of fixed capital          43.0    1,353.9
    Equals: National income                -28.2    9,679.6
Compensation of employees                   86.0    6,289.0
  Wage and salary accruals                   3.4    5,103.6
  Supplements to wages and salaries         82.7    1,185.5
    Employer contributions for
      employee pension and insurance
      funds                                 84.9      808.9
    Employer contributions for
      government social insurance           -2.2      376.6
Proprietors' income with IVA and CCAdj     -12.8      834.1
  Farm                                       2.3       21.8
    Of which:
      Proprietors' income with IVA           2.6       27.8
  Nonfarm                                  -15.1      812.3
    Of which:
      Proprietors' income                    0.7      673.9
      CCAdj                                -15.4      140.2
Rental income of persons with CCAdJ        -10.4      153.8
  Of which:
    Rental income of persons               -10.4      165.9
Corporate profits with IVA and CCAdj       -48.8    1,021.1
  Profits before tax                        18.1      874.5
    Domestic industries                      6.3      697.6
      Of which:
        Financial                           31.0      299.8
        Utilities                           -5.5       19.0
        Manufacturing                      -27.7       75.5
        Information                          4.7       -1.4
        Other nonfinancial                   5.0      163.3
    Rest of the world                       11.9      176.9
  IVA                                       -1.5      -14.1
  CCAdj                                    -65.4      160.8
Net interest and miscellaneous payments    -40.2      543.0
  Of which:
    Net interest (3)                       -41.4      529.4
      Monetary interest paid                        2,249.3
        Of which:
          Domestic business                         1,294.1
            Of which:
              Financial
                corporations                          606.5
              Nonfinancial                            448.8
                corporations
              Sole proprietorship
                and partnerships                      180.9
      Less: Monetary interest
        received                                    2,249.3
        Of which:
          Domestic business                         1,427.6
            Of which:
              Financial
                corporations                        1,143.7
              Nonfinancial
                corporations                          224.4
              Persons                                 557.3
      Imputed interest paid                           361.5
        Of which:
          Depositor and insurance
            services (paid by
            domestic financial
            corporate business)                       450.5
            Of which:
              Life insurance
                carriers                              178.3
      Less: Imputed interest received                 361.5
        Of which:
          Depositor and insurance
            services                                  458.0

            Of which:
              Persons (from life
                insurance
                carriers)                             178.3
Taxes on production and imports              9.4      798.1
  Of which:
    State and local                          8.1      708.7
Less: Subsidies                             -1.5       46.7
Business current transfer payments
  (net)                                    -17.5       77.7
  Of which:
    Payments to persons (net)              -17.0       28.9

Current surplus of government
  enterprises                                4.5        9.5
  Of which:
    Federal                                  7.3        5.8
Addenda:
Gross national product                      27.6   11,059.2
Gross saving                                 2.8    1,487.7
Personal income                            -46.2    9,161.8
  Compensation of employees, received       86.0    6,289.0
  Proprietors' income with IVA and
    CCAdj                                  -12.8      834.1
  Rental income of persons with CCAdj      -10.4      153.8
  Personal income receipts on assets       -70.6    1,322.7
    Personal interest income               -34.7      929.9
    Personal dividend income               -35.9      392.8
  Personal current transfer receipts       -42.1    1,335.4
    Government social benefits             -25.2    1,306.4
    Other current transfer receipts,
      from business (net)                  -17.0       28.9
                                            -3.6      773.2
  Less: Contributions for government
    social insurance
Less: Personal current taxes                10.5    1,001.9
  Of which:
    Federal                                 10.7      775.8
Equals: Disposable personal income         -56.6    8,159.9
Less: Personal outlays                       6.3    8,049.3
  Of which:
    Personal consumption expenditures        3.5    7,760.9
Equals: Personal saving                    -62.9      110.6

                                               Major source data
             NIPA component                     incorporated (1)

    Gross domestic product
Personal consumption expenditures
  Goods
    Motor vehicles and parts
      Of which:
        Net purchases of used autos
          and used light trucks           Revised Census Bureau annual
                                          retail trade survey (ARTS)
                                          data an sales and gross
                                          margin rates for 2001; new
                                          ARTS data for 2002; new
                                          trade source data on unit
                                          sales and prices for 2003.
    Goods other than motor vehicles
      and parts
      Of which:
        Furniture and household
          equipment                       Revised Census Bureau annual
                                          retail trade survey (ARTS)
                                          sales data for 2001;
                                          new ARTS data for 2002;
                                          revised Census Bureau
                                          monthly sales data for 2003.
        Food                              Revised Census Bureau annual
                                          retail trade survey (ARTS)
                                          sales data for 2001;
                                          new ARTS data for 2002;
                                          revised Census Bureau
                                          monthly sales data for 2003.
        Clothing and shoes                Revised Census Bureau annual
                                          retail trade survey (ARTS)
                                          sales data for 2001;
                                          new ARTS data for 2002;
                                          revised Census Bureau
                                          monthly sales data for 2003.
        Other nondurable goods            Revised Census Bureau annual
                                          retail trade survey (ARTS)
                                          sales data for 2001;
                                          new ARTS data for 2002;
                                          revised Census Bureau
                                          monthly sales data for 2003.
  Services
    Of which:
      Housing
        Of which:
          Tenant-occupied nonfarm
            dwellings--rent               New Department of Energy
                                          residential energy
                                          consumption survey data for
                                          2001; new Census Bureau
                                          current population survey/
                                          housing vacancy survey data
                                          for 2003.
      Household operation
        0f which:
          Gas                             Revised Energy Information
                                          Administration (EIA) data on
                                          residential natural gas
                                          consumption for 2001 and
                                          2002; new EIA data for 2003.
          Water and other sanitary
            services                      New Census Bureau Government
                                          Finances revenue data on
                                          state and local government
                                          water and sanitary services
                                          for FY 2002.
      Transportation
        Of which:
          Repair, greasing,
            washing, parking,
            storage, rental, and
            leasing                       New BLS consumer expenditure
                                          survey data for 2002;
                                          revised Census Bureau
                                          service annual survey (SAS)
                                          data for 2002; new Census
                                          Bureau SAS data for 2003.
          Airline                         Revised Department of
                                          Transportation (DOT) data on
                                          air passenger revenue for
                                          2002; new DOT data for 2003.
      Medical care
        Of which:
          Hospitals and nursing
            homes                         FY 2002 trade source data on
                                          expenses for 2001 and 2002;
                                          new Census Bureau service
                                          annual survey data for 2003;
                                          revised Census Bureau
                                          Government Finances (GF)
                                          data on state and local
                                          government sales of hospital
                                          services for FY 2001; new GF
                                          data for FY 2002.
      Other services
        Of which:
          Personal business
            Of which:
              Expense of handling
                life insurance and
                pension plans             Revised IRS statistics of
                                          income (S0I) data on profits
                                          for stock life insurance
                                          companies for 2001; revised
                                          Census Bureau state and
                                          local government employee-
                                          retirement system survey
                                          data for FY 2001; new SOI
                                          data for 2002; new Census
                                          Bureau state and local
                                          government employee-
                                          retirement system survey
                                          data for 2002; new trade
                                          source data for 2003.
              Legal services              Revised Census Bureau
                                          service annual survey (SAS)
                                          data for 2002; new SAS data
                                          for 2003.
          Net foreign travel by
            U.S. residents                Revised BEA international
                                          transactions accounts
                                          estimates for 2002 and 2003.
Gross private domestic investment
  Fixed investment
    Nonresidential
      Structures
        Of which:
          Commercial and health
            care                          Revised Census Bureau value
                                          of construction put in place
                                          data for 2002 and 2003
          Power and communication
            Of which:
              Electric                    Revised Census Bureau value
                                          of construction put in place
                                          data for 2002 and 2003.
              Communication               Revised Census Bureau value
                                          of construction put in place
                                          data for 2002 and 2003.
          Mining exploration,
            shafts, and wells
            Of which:
              Petroleum and
                natural gas               Trade source data on
                                          drilling costs for 2002;
                                          revised trade source data on
                                          footage drilled for 2002 and
                                          2003.
      Equipment and software
        Of which:
          Information processing
            equipment and software
            Of which:
              Software                    New Census Bureau service
                                          annual survey (SAS) detailed
                                          product receipts data for
                                          2002 and 2003; new BLS
                                          employment data for 2002 and
                                          2003.
              Communication
                equipment                 Now preliminary Census
                                          Bureau economic census
                                          "Advance Summary Statistics"
                                          shipments data for 2002.
          Industrial equipment
          Transportation equipment
            Of which:
              Trucks, buses, and
                truck trailers            New trade source data on
                                          unit sales and prices for
                                          used motor vehicles for
                                          2003.
    Residential
      Of which:
        Structures
          Of which:
            Single-family
              structures                  Revised Census Bureau value
                                          of construction put in place
                                          data for 2003.
  Change in private inventories
    Farm                                  Revised USDA data for 2001
                                          and 2002; new USDA data for
                                          2003.
    Nonfarm
      Change in book value
        Of which:
          Mining, utilities, and
            construction                  Revised IRS tabulations of
                                          inventory book value data
                                          from corporate tax returns
                                          for 2001; new IRS
                                          tabulations of inventory
                                          book value data from sole
                                          proprietorship, partnership,
                                          and corporate tax returns
                                          for 2002; Revised Energy
                                          Information Administration
                                          data for utilities for 2003.
          Wholesale trade
            Of which:
            Merchant wholesale
              trade                       Revised Census Bureau annual
                                          wholesale trade survey
                                          (AWTS) inventory book value
                                          data for 2001; new AWTS data
                                          for 2002; revised Census
                                          Bureau monthly inventory
                                          data for 2003.
          Retail trade                    Revised Census Bureau annual
                                          retail trade survey (ARTS)
                                          inventory book value data
                                          for 2001; new ARTS data for
                                          2002; revised BEA estimates
                                          based on inventory data from
                                          trade sources for 2003;
                                          revised Census Bureau
                                          monthly inventory data for
                                          2003.
            Of which:
            Motor vehicle dealers         Revised Census Bureau annual
                                          retail trade survey (ARTS)
                                          inventory book value data
                                          for 2001; new ARTS data for
                                          2002; revised BEA estimates
                                          based on inventory data from
                                          trade sources for 2003.
      Inventory valuation adjustment      Revised Census Bureau annual
                                          wholesale trade survey
                                          (AWTS) and annual retail
                                          trade survey (ARTS)
                                          information on accounting
                                          methods used for inventory
                                          reporting for 2001; new AWTS
                                          and ARTS information for
                                          2002; revised BEA unit labor
                                          cost indexes for 2001-2003.
Net exports of goods and servlsas         Revised BEA international
                                          transactions accounts
                                          estimates for 2001-2003.
  Exports
    Goods
    Services
  Imports
    Goods
    Services
Government consumption expenditures and
  gross investment
    Federal government
      Of which:
        Nondefense                        Revised allocations of FY
                                          2002 Federal budget data for
                                          2001 and 2002; revised FY
                                          2003 Federal budget data for
                                          2002 and 2003; preliminary
                                          FY 2004 Federal budget
                                          data for 2003.
    State and local government
      Consumption expenditures            Revised Census Bureau
                                          Government Finances (GF)
                                          tabulations for FY 2001;
                                          new GF tabulations for
                                          FY 2002.
        Of which:
          Nondurable goods
          Services
      Gross investment
        Of which:
          Structures                      Revised Census Bureau value
                                          of construction put in place
                                          data for 2001-2003.
Gross domestic product
Less: Statistical discrepancy (2)
Equals: Gross domestic income
  Of which:
    Compensation of employees, paid       See entries under "national
                                          income."
    Net operating surplus                 See entries under "national
                                          income."
    Consumption of fixed capital
      Of which:
        Private
          Domestic business               Revised BEA fixed investment
                                          and price estimates for
                                          2001-2003; new BEA capital
                                          flow table for 1997.
            Capital consumption
              allowances                  Revised IRS tabulations of
                                          corporate tax return data
                                          for 2001; new IRS
                                          tabulations for 2002; new
                                          IRS tabulations of sole
                                          proprietorship and
                                          partnership tax return data
                                          for 2002; revised BEA fixed
                                          investment estimates for
                                          2001-2003.
            Less: CCAdj                   CCAdj is calculated as
                                          consumption of fixed capital
                                          less capital consumption
                                          allowances.
          Households and
            institutions                  Revised BEA fixed investment
                                          and price estimates for
                                          2001-2003; new BEA capital
                                          flow table for 1997.
Plus: Income receipts from the rest of
  the world                               Revised BEA international
                                          transactions accounts
                                          estimates for 2001-2003.
Less: Income payments to the rest of
  the world                               Revised BEA international
                                          transactions accounts
                                          estimates for 2001-2003.
Equals: Gross national income
Less: Consumption of fixed capital
    Equals: National income
Compensation of employees
  Wage and salary accruals
  Supplements to wages and salaries
    Employer contributions for
      employee pension and insurance
      funds                               New corporate financial data
                                          for 2002 and 2003; new
                                          Department of Health and
                                          Human Services medical
                                          expenditure panel survey
                                          data for 2002.
    Employer contributions for
      government social insurance

Proprietors' income with IVA and CCAdj
  Farm
    Of which:
      Proprietors' income with IVA        Revised USDA data for 2001
                                          and 2002; new USDA data for
                                          2003; revised BEA
                                          depreciation estimates for
                                          2001-2003.
  Nonfarm
    Of which:
      Proprietors' income                 New IRS tabulations of sole
                                          proprietorship and
                                          partnership tax return data
                                          for 2002.
      CCAdj                               Capital consumption
                                          allowances: New IRS
                                          tabulations of sole
                                          proprietorship and
                                          partnership tax return data
                                          for 2002. Consumption of
                                          fixed capital: Revised BEA
                                          fixed investment and price
                                          estimates for 2001-2003; new
                                          BEA capital flow table for
                                          1997.
Rental income of persons with CCAdJ
  Of which:
    Rental income of persons              Revised FRB flow-of-funds
                                          accounts residential
                                          mortgage liabilities data or
                                          2001-2003; new trade source
                                          data on property insurance
                                          for 2002: new Census Bureau
                                          current population survey/
                                          housing vacancy survey data
                                          on owner- and tenant-
                                          occupied units for 2003;
                                          revised IRS tabulations of
                                          individual tax return data
                                          for 2001; new IRS data for
                                          2002; new Federal National
                                          Mortgage Corporation
                                          mortgage originations data
                                          for 2002; new Department of
                                          Housing and Urban
                                          Development data on average
                                          closing costs for 2003; new
                                          Census Bureau data on
                                          expenditures for residential
                                          improvements and repairs for
                                          2003; new Department of
                                          Energy residential energy
                                          consumption survey data on
                                          utilities charges for
                                          residential housing for
                                          2001; revised Census Bureau
                                          Government Finances (GF) FY
                                          2001 data on state and local
                                          property taxes; new GF data
                                          for FY 2002.
Corporate profits with IVA and CCAdj      Revised IRS tabulations of
                                          corporate tax return data
                                          for 2001; new IRS
                                          tabulations for 2002;
                                          regulatory agency and public
                                          financial reports profits
                                          data for 2003.
  Profits before tax
    Domestic industries
      Of which:
        Financial
        Utilities
        Manufacturing
        Information
        Other nonfinancial
    Rest of the world                     Revised BEA international
                                          transactions accounts
                                          estimates for 2001-2003.
  IVA
  CCAdj                                   Capital consumption
                                          allowances: Revised IRS
                                          tabulations of corporate tax
                                          return data for 2001; new
                                          IRS tabulations for 2002.
                                          Consumption of fixed
                                          capital: Revised BEA fixed
                                          investment and price
                                          estimates for 2001-2003; new
                                          BEA capital flow table for
                                          1997.
Net interest and miscellaneous payments
  Of which:
    Net interest (3)
      Monetary interest paid
        Of which:
          Domestic business               Revised IRS tabulations of
                                          corporate in return data for
                                          2001; new IRS tabulations
                                          for 2002; new IRS
                                          tabulations of sole
                                          proprietorship and
                                          partnership tax return data
                                          for 2002; revised FRB flow-
                                          of-funds accounts
                                          residential mortgage
                                          liabilities data and
                                          nonfinancial corporate
                                          liabilities data for 2001
                                          and 2002; new FRB flow-of-
                                          funds accounts residential
                                          mortgage liabilities data
                                          and nonfinancial corporate
                                          liabilities data for 2003;
                                          revised USDA data on
                                          interest paid by farmers for
                                          2001 and 2002; new USDA data
                                          for 2003; new Federal
                                          Deposit Insurance
                                          Corporation data, Credit
                                          Union National Association
                                          data, Office of Thrift
                                          Supervision data, and trade
                                          source data on investment
                                          companies for 2003.
            Of which:
              Financial
                corporations
              Nonfinancial
                corporations
              Sole proprietorship
                and partnerships
      Less: Monetary interest
        received                          Revised IRS tabulations of
                                          corporate tax return data
                                          for 2001; new IRS
                                          tabulations for 2002; new
                                          IRS tabulations for sole
                                          proprietorship and
                                          partnership tax return data
                                          for 2002.
        Of which:
          Domestic business               Revised FRB flow-of-funds
                                          amounts nonfinancial
                                          corporate assets data for
                                          2001 and 2002; new FRB
                                          flow-of-funds accounts
                                          nonfinancial corporate
                                          assets data for 2003; new
                                          Federal Deposit Insurance
                                          Corporation data, Credit
                                          Union National Association
                                          data, Office of Thrift
                                          Supervision data, and trade
                                          source data on investment
                                          companies for 2003.
            Of which:
              Financial
                corporations
              Nonfinancial
                corporations
              Persons
      Imputed interest paid
        Of which:
          Depositor and insurance
            services (paid by
            domestic financial
            corporate business)
            Of which:
              Life insurance
                carriers                  New trade source data on
                                          investment income of life
                                          insurance carriers for 2002;
                                          new FRB flow-of-funds
                                          accounts assets data of life
                                          insurance companies for 2002
                                          and 2003.
      Less: Imputed interest received
        Of which:
          Depositor and insurance
            services                      Revised FRB flow-of-funds
                                          accounts sector assets data
                                          for 2001 and 2002; new FRB
                                          data for 2003.
            Of which:
              Persons (from life
                insurance
                carriers)
Taxes on production and imports
  Of which:
    State and local                       Revised Census Bureau
                                          Government Finances (GF)
                                          tabulations for FY 2001; new
                                          GF tabulations for FY 2002.
Less: Subsidies
Business current transfer payments
  (net)
  Of which:
    Payments to persons (net)             New trade source data on
                                          property and casualty
                                          insurance premiums and
                                          losses for 2002; new IRS
                                          tabulations of corporate tax
                                          return data for 2002.
Current surplus of government
  enterprises
  Of which:
    Federal                               Revised allocations of FY
                                          2002 Federal budget data for
                                          2001 and 2002; revised FY
                                          2003 Federal budget data for
                                          2002 and 2003; preliminary
                                          FY 2004 Federal budget data
                                          for 2003; new FY 2003
                                          Postal Service financial
                                          data for 2002 and 2003. For
                                          government enterprise
                                          consumption of fixed
                                          capital: Perpetual-
                                          inventory calculations at
                                          current cost based on gross
                                          investment and on investment
                                          prices for 2001-2003.
Addenda:
Gross national product
Gross saving
Personal income                           See entries under "national
                                          income" and additional
                                          sources below.
  Compensation of employees, received
  Proprietors' income with IVA and
    CCAdj
  Rental income of persons with CCAdj
  Personal income receipts on assets
    Personal interest income              See entries under "net
                                          interest."
    Personal dividend income              Revised IRS tabulations of
                                          corporate tax return data
                                          for 2001; new IRS
                                          tabulations for 2002;
                                          regulatory agency and public
                                          financial statements data on
                                          dividends for 2003.
  Personal current transfer receipts
    Government social benefits            Revised allocations of FY
                                          2002 Federal budget data for
                                          2001 and 2002; revised FY
                                          2003 Federal budget data for
                                          2002 and 2003; preliminary
                                          FY 2004 Federal budget data
                                          for 2003; new Centers for
                                          Medicare and Medicaid
                                          Services tabulations of
                                          Medicare and Medicaid
                                          payments for 2002; new
                                          Treasury Department data for
                                          2003; new Department of
                                          Labor data on unemployment
                                          benefits for 2003.
    Other current transfer receipts,
      from business (net)                 See entry under "business
                                          current transfer payments to
                                          persons (net)."

  Less: Contributions for government
    social insurance
Less: Personal current taxes
  Of which:
    Federal                               Revised Social Security
                                          Administration (SSA) data on
                                          taxable wages for 2001 and
                                          2002; new SSA data for 2003;
                                          Treasury Department personal
                                          income tax collections data
                                          for 2001-2003.
Equals: Disposable personal income
Less: Personal outlays
  Of which:
    Personal consumption expenditures     See entries under "personal
                                          consumption expenditures."
Equals: Personal saving

(1.) In these descriptions, "new" indicates this is the first time that
data from the specific source are being incorporated into the component
estimate for the given year, and "revised" indicates that data from the
specific source were incorporated previously and now revised data from
that source are being incorporated.

(2.) The statistical discrepancy is gross national product (GNP) less
gross national income (GNI); it is also the difference between gross
domestic product (GDP) and gross domestic income (GDI), which is GNI
less net income receipts from the rest of the world. The statistical
discrepancy arises because the product-side measures of GNP and GDP are
estimated independently from the income-side measures of GNI and GDI.

(3.) Net interest is the sum of monetary interest paid by domestic
business and by the rest of the world and imputed interest paid by
domestic financial corporate business, less monetary interest received
by domestic business and by the rest of the world and imputed interest
received by domestic business and by the rest of the world.

BEA Bureau of Economic Analysis

BLS Bureau of Labor Statistics

CCAdj Capital consumption adjustment

FRB Federal Reserve Board

FY Fiscal year

IRS Internal Revenue Service

IVA Inventory valuation adjustment

USDA U.S. Department of Agriculture

Table 7. Discontinuities in NIPA Foreign Transactions, 2000-2001

[Billions of dollars]

                                                      2000

                                                     Discon-
                                            Pub-     tinuity
                                           lished      (1)     Adjusted

Net exports of goods and services           -379.5      -0.4     -379.9
  Exports                                  1,096.3      -0.2    1,096.1
    Goods                                    784.3       0.0      784.3
    Services                                 311.9      -0.2      311.7
  Imports                                  1,475.8       0.2    1,476.0
    Goods                                  1,243.5       0.0    1,243.5
    Services                                 232.3       0.2      232.5
Net receipts of income                        39.0      -1.7       37.3
  Income receipts                            382.7      -0.1      382.6
    Wage and salary receipts                   2.9      -0.1        2.8
    Income receipts on assets                379.7       0.0      379.7
      Interest                               177.2       0.0      177.2
      Dividends                               86.3       0.0       86.3
      Reinvested earnings on U.S.
        direct investment abroad             116.1       0.0      116.1
  Income payments                            343.7       1.6      345.3
    Wage and salary payments                   7.5       0.0        7.5
    Income payments on assets                336.2       1.6      337.8
      Interest                               279.4       1.5      280.9
      Dividends                               56.8       0.1       56.9
      Reinvested earnings on foreign
        direct investment in the United
        States                                -0.1       0.0       -0.1
Current taxes and transfer payments
  to the rest of the world (net)              56.1       0.0       56.1
Addenda:
  GDP                                      9,817.0      -0.4    9,816.6
  GNP                                      9,855.9      -2.1    9,853.8

                                                      Change from 2000
                                            2001          to 2001

                                                      Pub-       Ad-
                                          Revised    lished     justed

Net exports of goods and services           -367.0      12.5       12.9
  Exports                                  1,032.8     -63.5      -63.3
    Goods                                    731.2     -53.1      -53.1
    Services                                 301.6     -10.3      -10.1
  Imports                                  1,399.8     -76.0      -76.2
    Goods                                  1,167.9     -75.6      -75.6
    Services                                 231.9      -0.4       -0.6
Net receipts of income                       322.4     283.4      285.1
  Income receipts                            322.4     -60.3      -60.2
    Wage and salary receipts                   2.9       0.0        0.1
    Income receipts on assets                319.5     -60.2      -60.2
      Interest                               136.9     -40.3      -40.3
      Dividends                               87.4       1.1        1.1
      Reinvested earnings on U.S.
        direct investment abroad              95.2     -20.9      -20.9
  Income payments                            278.8     -64.9      -66.5
    Wage and salary payments                   8.1       0.6        0.6
    Income payments on assets                270.7     -65.5      -67.1
      Interest                               257.8     -21.6      -23.1
      Dividends                               46.5     -10.3      -10.3
      Reinvested earnings on foreign
        direct investment in the United
        States                               -33.7     -33.6      -33.6
Current taxes and transfer payments
  to the rest of the world (net)              47.0      -9.1       -9.1
Addenda:
  GDP                                     10,128.0     311.0      311.4
  GNP                                     10,171.6     315.7      317.8

(1.) Equals the revisions to the U.S. international transactions
accounts, excluding insurance premium supplements, that have not been
carried back in the NIPAs at this time.

Table 8. Revisions to Percent Change in GDP Price Indexes

[Percent change from preceding year]

                                 2000                2001

                                        Previously   Revised   Revision
                                        published

    Gross domestic product        2.2          2.4       2.4        0.0
Personal consumption
  expenditures                    2.5          2.0       2.1        0.1
  Durable goods                  -1.6         -1.9      -1.9        0.0
  Nondurable goods                4.0          1.5       1.5        0.0
  Services                        2.7          3.2       3.3        0.1
Gross private domestic fixed
  investment                      1.1          1.1       1.0       -0.1
  Nonresidential                 -0.1         -0.2      -0.3       -0.1
    Structures                    3.9          5.5       5.4       -0.1
    Equipment and software       -1.3         -2.2      -2.3       -0.1
  Residential                     4.4          4.6       4.6        0.0
Change in private inventories
Net exports of goods and
  services
  Exports                         1.7         -0.4      -0.4        0.0
    Goods                         1.1         -0.7      -0.7        0.0
    Services                      3.1          0.4       0.4        0.0
  Imports                         4.2         -2.5      -2.5        0.0
    Goods                         4.8         -3.0      -3.0        0.0
    Services                      1.4          0.2       0.1       -0.1
Government consumption
  expenditures and gross
  investment                      4.1          2.6       2.5       -0.1
  Federal                         3.2          2.1       1.9       -0.2
    National defense              3.2          2.2       2.0       -0.2
    Nondefense                    3.2          1.9       1.7       -0.2
  State and local                 4.5          2.9       2.9        0.0
Addendum:
  Gross domestic purchases        2.5          2.0       2.0        0.0

                                              2002

                                 Previously   Revised   Revision
                                 published

    Gross domestic product              1.5       1.7        0.2
Personal consumption
  expenditures                          1.4       1.4        0.0
  Durable goods                        -2.9      -2.7        0.2
  Nondurable goods                      0.5       0.6        0.1
  Services                              2.7       2.7        0.0
Gross private domestic fixed
  investment                            0.1       0.2        0.1
  Nonresidential                       -0.9      -0.8        0.1
    Structures                          1.4       2.4        1.0
    Equipment and software             -1.7      -1.9       -0.2
  Residential                           2.4       2.5        0.1
Change in private inventories
Net exports of goods and
  services
  Exports                              -0.4      -0.4        0.0
    Goods                              -0.7      -0.7        0.0
    Services                            0.3       0.4        0.1
  Imports                              -1.0      -1.2       -0.2
    Goods                              -1.7      -1.8       -0.1
    Services                            2.5       1.7       -0.8
Government consumption
  expenditures and gross
  investment                            2.6       2.7        0.1
  Federal                               2.7       3.3        0.6
    National defense                    2.5       3.4        0.9
    Nondefense                          3.2       3.1       -0.1
  State and local                       2.5       2.4       -0.1
Addendum:
  Gross domestic purchases              1.4       1.5        0.1

                                              2003

                                 Previously   Revised   Revision
                                 published

    Gross domestic product              1.7       1.8        0.1
Personal consumption
  expenditures                          1.8       1.9        0.1
  Durable goods                        -3.7      -3.4        0.3
  Nondurable goods                      2.1       2.0       -0.1
  Services                              2.9       3.0        0.1
Gross private domestic fixed
  investment                            1.1       1.2        0.1
  Nonresidential                       -0.2      -0.4       -0.2
    Structures                          2.1       2.1        0.0
    Equipment and software             -0.9      -1.2       -0.3
  Residential                           3.9       4.4        0.5
Change in private inventories
Net exports of goods and
  services
  Exports                               2.1       2.1        0.0
    Goods                               2.0       2.0        0.0
    Services                            2.2       2.4        0.2
  Imports                               3.6       3.4       -0.2
    Goods                               2.9       2.9        0.0
    Services                            7.4       5.9       -1.5
Government consumption
  expenditures and gross
  investment                            2.9       3.2        0.3
  Federal                               2.5       3.6        1.1
    National defense                    2.6       4.2        1.6
    Nondefense                          2.3       2.6        0.3
  State and local                       3.1       3.0       -0.1
Addendum:
  Gross domestic purchases              1.9       2.0        0.1


Acknowledgments

Carol E. Moylan, Chief of the National Income and Wealth Division, supervised the preparation of this year's annual revision of the national income and product accounts. Brooks B. Robinson, Chief of the Government Division, directed major parts of the revision. Brent R. Moulton, Associate Director for National Economic Accounts, provided overall supervision. Kali K. Kong--together with Stephen H. Andrews, Christopher G. Falcone, Andrew K. Hummel, Arnold J. Katz, Janet H. Kmitch, Daniel Larkins, Karin E. Moses, Shelly Smith, David F. Sullivan, and Dennis R. Weikel--coordinated and conducted the estimation and review process.

Eugene P. Seskin and Shelly Smith wrote the article. Duane G. Hackmann, Garrett T. Schmitt, and Teresa L. Weadock prepared analyses and other review materials for both the article and the news release. Michael J. Boehm, Ross F. Metzger, Lisa C. Ninomiya, James J. Raley III, John Sporing, Jr., Eric M. Weiss, and Mary D. Young, under the direction of Robert A. Hill, developed and operated the computer systems that were used to compile, check, analyze, and report the final estimates.

Other BEA staff who made significant contributions to the revision are listed below.

Personal consumption expenditures: Clinton P. McCully. Goods: M. Greg Key, John L. Brougher, Harvey L. Davis, Jr., Everette P. Johnson. Services: Michael Armah, Robert N. Ganz III, Brendan J. Leary, Farah Naz, Dennis R. Weikel.

Investment and foreign transactions: Paul R. Lally. Inventories and structures: Jennifer A. Ribarsky, Velma P. Henry, Soo Jeong Kim, Christopher Lucas, Tony Troy. Foreign transactions, equipment, software, and prices: David B. Wasshausen, Jeffrey W. Crawford, Andrew K. Hummel, Todd P. Siebeneck, Linden L. Webber.

Federal Government: Pamela A. Kelly, W. Robert Armstrong, Peter G. Beall, Jennifer A. Bennett, Aaron G. Brodsky, Andrew P. Cairns, Megan G. Carney, Andrea L. Cook, Christopher G. Falcone, Raymen G. Labella, Benjamin A. Mandel, Michelle D. Robinson, Jay M. Rogers, Mary L. Roy, Benyam Tsehaye, Andrew E. Vargo.

Special studies: Steven Payson, Wanda Y. Chambers, Gary W. Davis, Francesca B. Holzheimer, Mark A. Ledbetter, Michael P. Moore, Charles S. Robinson, Teresita Teensma, Zhi Wang.

State and local government: Bruce E. Baker, Steven J. Andrews, Benjamin D. Cowan, Alyssa E. Holdren, Janet H. Kmitch, Rebecca A. Rider, Andrew K. Strauss.

Chain-type quantity and price measures: Michael J. Boehm, Karl V. Rohrer, John Sporing, Jr.

Personal income: Kurt Kunze, Toui C. Pomsouvan.

Employee compensation: Kurt Kunze, M. Terri Davenport, Jennifer R. Mykijewycz, James E. Rankin, Elijah Slack, Ernest D. Wilcox.

Business income: Kenneth A. Petrick, Scott Okrent, Jerry L. Stone, Garth K. Trinkl.

Property income. Nicole M. Mayerhauser. Farm output and income: Bonnie A. Retus. Interest income: Shaunda M. Villones. Rental income of persons and housing output: Denise A. McBride.

Consumption of fixed capital: Paul R. Lally. Private: Randal T. Matsunaga, Michael T. Cusick, Michael D. Glenn, Julia T.D. Nguyen, Nadia F.P. Sadee. Government: Steven Payson, D. Timothy Dobbs, Charles S. Robinson, Zhi Wang.

NIPA information: Marilyn E. Baker, Virginia H. Mannering, Teresa L. Weadock.

Secretarial and program assistance: Adrienne M. Burch, Esther M. Carter, Katherine Dent, Angela P. Pointer.

Other contributors to the review process include Florence H. Campi, Becky A. Lafrancois, and Stephanie M. Mak.

(1.) Information about the structure, definitions, presentation, and methodologies that underlie the NIPAs and that reflect the 2003 comprehensive NIPA revision is available on BEA's Web site; go to <www.bea.gov>, and click on "Methodologies."

(2.) In this article, "government spending" is shorthand for the NIPA series "government consumption expenditures and gross investment."

(3.) For the GDP components for which chained-dollar estimates are prepared by extrapolation or direct valuation, the current-dollar and chained-dollar estimates are based on independent source data; consequently, the corresponding revisions are unrelated. For a list of these components, see table 2 in "Updated Summary NIPA Methodologies. SURVEY OF CURRENT BUSINESS 82 (October 2002): 34-38.

(4.) See the box "The Statistical Discrepancy" in Robert F. Parker and Eugene P. Seskin, "Annual Revision of the National Income and Product Accounts," SURVEY 77 (August 1997): 19.

(5.) The Census Bureau data on the value of construction put in place are the major source data for the estimates of both nonresidential and residential structures. The revised estimates of structures are based on the best period-to-period change rather than on the "best level" of the appropriate Census Bureau series; see the box "Incorporating Source Data on the Basis of 'Best Change'" in Eugene P. Seskin and David F. Sullivan, "Annual Revision of the National Income and Product Accounts," SURVEY 80 (August 2000): 16.

(6.) Change in private inventories is calculated by adjusting inventories reported by businesses on a non-LIFO (last-in-first-out) book-value basis to a current-period replacement-cost basis; this revaluation eliminates gains or losses that result from holding inventories when prices change. The inventory valuation adjustment (IVA), which is calculated as the change in private inventories less the change in book values, reflects inventory price changes for firms that value inventory withdrawals at acquisition (historical) cost.

(7.) The IVA is not needed for farm inventories, because they are measured on the basis of current market price.

(8.) The estimates of insurance premium supplements, the expected investment income on the technical reserves of insurance companies, were introduced into the ITAs for 1992-2003 as part of the annual revision; see Christopher L. Bach, "Annual Revision of the U.S. International Accounts, 1989-2003," SURVEY 84 (July 2004): 52-64. The estimates for these supplements were introduced into the NIPAs as part of the 2003 comprehensive NIPA revision.

(9.) Net interest is calculated as the sum of monetary interest paid by domestic business and by the rest of the world and imputed interest paid by domestic financial corporate business, less monetary interest received by domestic business and by the rest of the world and imputed interest received by domestic business and by the rest of the world.

(10.) For 2003, the revision cannot be attributed to the same level of component detail as that for 2002, because for 2003, the previously published estimates were prepared at a less detailed level.

(11.) The implicit prices are computed by dividing the current-dollar estimates by the chained-dollar estimates that are derived from the quantity data used in quantity extrapolation and direct valuation. Thus, differences between the current-dollar revisions and the chained-dollar revisions to these components are reflected as revisions to their implicit prices.

(12.) These changes update the methodological information in the two tables that were published in "Updated Summary NIPA Methodologies."

(13.) TRICARE is a health care plan that is managed by the Department of Defense for former and current members of military and their dependents. For more information, visit <www.tricare.osd.mil>.

(14.) For details on the basic treatment of major government retirement funds, see Brant R. Moulton, Robert P. Parker, and Eugene P. Seskin, "A Preview of the 1999 Comprehensive Revision of the National Income and Product Accounts: Definitional and Classificational Changes," Survey 79 (August 1999): 7-20.

Data Availability

An extensive set of estimates are presented in "National Income and Product Accounts" in this issue. These estimates and annual estimates for 1929 forward and quarterly estimates for 1946 forward are available on BEA's Web site at <www.bea.gov>. Later this year, the NIPA estimates

will be available on a CD-ROM; its availability will be announced in the SURVEY OF CURRENT BUSINESS and on BEA's Web site.

Selected revised NIPA estimates and related estimates will be published in upcoming issues of the SURVEY. The September SURVEY will present NIPA table 5.9 (which shows changes in the net stock of produced assets) and NIPA table 7.19 (which shows the relationship between personal income in the NIPAs and adjusted gross income from the IRS); it will also present new estimates of fixed assets and consumer durable goods for 2003 and revised estimates for 2001 and 2002.

The October SURVEY will present the following NIPA tables: Table 2.9 (personal income by households and by nonprofits institutions serving households), tables 3.15-3.17 (government spending by function), tables 3.18-3.19 (government sector reconciliation tables), table 7.20 (nonprofit reconciliation table), and tables 8.1-8.6 (seasonally unadjusted estimates). It will also feature the "Updated Summary NIPA Methodologies," which lists the principal source data and estimating methods that are used in preparing the current-dollar and real estimates of GDP, and revised real inventories, sales, and inventory-sales ratios for manufacturing and trade for 2001:I-2004:I. In addition, the revised estimates of state personal income that incorporate the results of this annual revision of the NIPAs will be presented.

Revised and updated estimates of GDP by industry will be available in the late fall of 2004.
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Author:Seskin, Eugene P.; Smith, Shelly
Publication:Survey of Current Business
Geographic Code:1USA
Date:Aug 1, 2004
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