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Annual revision of the national income and product accounts.

Annual Estimates for 2003-2005

Quarterly Estimates for 2003:I-2006:I

THE Bureau of Economic Analysis (BEA) released revised estimates of the national income and product accounts (NIPAs) for 2003-2005 and for the first quarter of 2006 on July 28, 2006. (1) As is usual in annual NIPA revisions, these estimates incorporated newly available source data that are more complete, more detailed, and otherwise more reliable than those that were previously incorporated.

These estimates also reflect several methodological changes, including changes in the methods used to estimate light trucks and utility vehicles, incorporation of newly available source data for estimating hospital and nursing home services, and changes in the methods used to estimate investment in computers. This year's annual revision also introduces two new tables presenting separate estimates of receipts and expenditures for state governments and for local governments (see "Changes in Methodology").

This annual revision has not changed the general picture of the economy for the past several years. The revised estimates of the growth in real gross domestic product (GDP) show a somewhat slower rate of increase than the previously published estimates. However, by historical standards, the revisions to year-to-year growth rates of real GDP are small. In addition, the quarterly pattern of real GDP growth shown by the revised estimates is similar to the pattern shown by previously published estimates. The revised estimates of prices show a somewhat faster rate of increase than the previously published estimates.

The following are the highlights of the revision:

* From 2002 to 2005, real GDP grew at an average annual rate of 3.2 percent, 0.3 percentage point less than in the previously published estimates. From the fourth quarter of 2002 to the first quarter of 2006, real GDP grew at an average annual rate of 3.6 percent, 0.2 percentage point less than in the previously published estimates.

* From the fourth quarter of 2002 to the first quarter of 2006, the average rate of increase in the price index for gross domestic purchases was revised up 0.1 percentage point to 3.1 percent.

* From 2002 to 2005, real disposable personal income grew at an average annual rate of 2.3 percent, 0.1 percentage point less than in the previously published estimates.

This article discusses the impact of the revisions on key NIPA measures, summarizes the revisions, lists the major source data, and describes the changes in methodology.

Appendix A presents the revised annual estimates and the revisions for the seven summary accounts of the NIPAs in current dollars. In addition, an extensive set of tables presenting revised monthly, quarterly, and annual NIPA estimates and the "advance" estimates for the second quarter of 2006 is available in "National Income and Product Accounts Tables" in this issue. Historical estimates are presented in "GDP and Other Major NIPA Series, 1929-2006:II."

Impact of the Revisions

According to the revised estimates, the average annual rate of growth of real GDP from the fourth quarter of 2002 to the first quarter of 2006 was revised down 0.2 percentage point to 3.6 percent (table 1). In the revised estimates, equipment and software, Federal Government spending, nonresidential structures, personal consumption expenditures (PCE) for nondurable goods, imports of goods and services, and state and local government spending were weaker than in the previously published estimates; PCE for durable goods, change in private inventories, and exports of goods and services were stronger; and PCE for services and residential fixed investment were little revised. (2)

In the revised estimates, the cyclical recovery that followed the 2001 downturn was slightly milder than previously estimated. From the third quarter of 2001 to the first quarter of 2006, the revised estimates show that real GDP increased at an average annual rate of 3.1 percent; the previously published estimates showed an average increase of 3.3 percent.

The percent change in real GDP from the preceding year was revised down for all 3 years: From 2.7 percent to 2.5 percent for 2003, from 4.2 percent to 3.9 percent for 2004, and from 3.5 percent to 3.2 percent for 2005 (chart 1).

From fourth quarter to fourth quarter, the percent change in real GDP was revised down for all 3 years: From 4.0 percent to 3.7 percent for 2003, from 3.8 percent to 3.4 percent for 2004, and from 3.2 percent to 3.1 percent for 2005.

The revised estimates of prices show a somewhat faster rate of increase than the previously published estimates. From the fourth quarter of 2002 to the first quarter of 2006, the average annual rate of increase in the price index for gross domestic purchases was revised up 0.1 percentage point to 3.1 percent, and the average annual rate of increase in the GDP price index was revised up 0.2 percentage point to 2.9 percent (table 2). The percent change in the price index for gross domestic purchases from the preceding year was revised up for all 3 years: 0.1 percentage point to 2.3 percent for 2003, 0.2 percentage point to 3.1 percent for 2004, and 0.3 percentage point to 3.5 percent for 2005 (chart 1).

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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? In this year's annual revision, the first and third factors accounted for most of the revisions.

Annual estimates of real GDP

The annual percent change in real GDP was revised down for all 3 years: From 2.7 percent to 2.5 percent for 2003, from 4.2 percent to 3.9 percent for 2004, and from 3.5 percent to 3.2 percent for 2005 (table 3).

For 2003, the largest contributors to the downward revision to real GDP growth were PCE for durable goods, state and local government spending, exports, and PCE for services; the contributions of these components were partly offset by a downward revision to imports. For 2004, the largest contributors to the downward revision to real GDP growth were private fixed investment in equipment and software and PCE for nondurable goods; the contributions of these components were partly offset by upward revisions to PCE for services and to exports. For 2005, the largest contributors to the downward revision were fixed investment in equipment and software, PCE for services, and state and local government spending; the contributions of these components were partly offset by upward revisions to residential fixed investment, and to PCE for durable goods.

Revisions to the components of real GDP. The annual percent change in real PCE was revised down 0.1 percentage point to 2.8 percent for 2003, was unrevised at 3.9 percent for 2004, and was unrevised at 3.5 percent for 2005 (table 4). For 2003, the revision was accounted for by downward revisions to PCE for durable goods (mainly to motor vehicles and parts) and to PCE for services (mainly to medical care and "other" services). For 2004, a downward revision to PCE for non-durable goods (mainly to food) was offset by an upward revision to PCE for services (mainly to "other services," most notably to "expense of handling life insurance and pension plans," and to housing services). For 2005, a downward revision to PCE for services (which was more than accounted for by medical care services) was offset by an upward revision to PCE for durable goods (mainly to motor vehicles and parts).

The annual percent change in nonresidential fixed investment was revised down for all 3 years: 0.3 percentage point to 1.0 percent for 2003, 3.5 percentage points to 5.9 percent for 2004, and 1.8 percentage points to 6.8 percent for 2005. For all 3 years, the revisions were primarily accounted for by downward revisions to equipment and software. Within equipment and software, the revision for 2003 was more than accounted for by a downward revision to transportation equipment. For 2004, the revision was primarily accounted for by downward revisions to information processing equipment and software, to "other" equipment," and to industrial equipment. For 2005, the revision was more than accounted for by a downward revision to information processing equipment and software.

The percent change in residential fixed investment was unrevised at 8.4 percent for 2003, was revised down 0.4 percentage point to 9.9 percent for 2004, and was revised up 1.5 percentage points to 8.6 percent for 2005. For 2004, the revision primarily reflects a downward revision to single-family structures that was partly offset by an upward revision to multifamily structures. For 2005, the revision primarily reflects an upward revision to single-family structures that was partly offset by a downward revision to "other structures" (mainly to brokers' commissions).

The change in private inventories (in chained 2000 dollars) was revised down $1.2 billion for 2003, was revised up $1.4 billion for 2004, and was revised down $0.7 billion for 2005. For 2003, the revision was more than accounted for by nonfarm inventory investment. For 2004, an upward revision to farm inventory investment was partly offset by a downward revision to nonfarm inventory investment. For 2005, a downward revision to nonfarm inventory investment was partly offset by an upward revision to farm inventory investment.

The annual percent change in exports of goods and services was revised down 0.5 percentage point to 1.3 percent for 2003, was revised up 0.8 percentage point to 9.2 percent for 2004, and was revised down 0.1 percentage point to 6.8 percent for 2005. For 2003, the revision reflects a downward revision to exports of services. For 2004, the revision primarily reflects an upward revision to exports of services. For 2005, the revision reflects a downward revision to exports of services that was partly offset by an upward revision to exports of goods.

The percent change in imports of goods and ser vices was revised down 0.5 percentage point to 4.1 percent for 2003, was revised up 0.1 percentage point to 10.8 percent for 2004, and was revised down 0.2 percentage point to 6.1 percent for 2005. For 2003 and 2004, the revisions primarily reflect revisions to imports of services. For 2005, the revision reflects downward revisions to imports of goods and to imports of services.

The percent change in government spending was revised down for all 3 years: 0.3 percentage point to 2.5 percent for 2003, 0.3 percentage point to 1.9 percent for 2004, and 0.9 percentage point to 0.9 percent for 2005. For 2003, the revision primarily reflects a downward revision to state and local consumption expenditures. For 2004, the revision primarily reflects a downward revision to Federal defense consumption expenditures; within state and local government spending, an upward revision to consumption expenditures was mostly offset by a downward revision to gross investment. For 2005, the revision primarily reflects downward revisions to state and local government spending and to Federal defense consumption expenditures.

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 per cent changes (at annual rates) averaged 0.4 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.)

Both the revised estimates and the previously published estimates show similar quarterly patterns of growth in real GDP. The largest downward revisions to the percent changes in real GDP were 0.9 percentage point for the fourth quarter of 2003 and for the third quarter of 2004 (chart 2 and table 5). For the fourth quarter of 2003, the GDP growth rate was revised down to 2.7 percent; the largest contributors to the revision were downward revisions to PCE for services, to PCE for nondurable goods, and to farm inventory investment. For the third quarter of 2004, the GDP growth rate was revised down to 3.1 percent; the largest contributors to the revision were downward revisions to farm inventory investment, to equipment and software investment, and to state and local government spending.

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In general, the percent changes for the gross domestic purchases price index were revised up; the revisions to the 13 quarterly percent changes (at annual rates) averaged 0.2 percentage point (without regard to sign). The price index was revised up for nine quarters, was revised down for one quarter (0.2 percentage point for the fourth quarter of 2005), and was unrevised for three quarters. The largest upward revision was 0.6 percentage point, to 2.6 percent, for the third quarter of 2004; the major contributors to the revision were prices of state and local government gross investment (mainly structures) and PCE for nondurable goods (mainly gasoline and oil).

Annual current-dollar estimates

A summary of the revisions to the current-dollar estimates of the major NIPA components is presented in table 6. It shows the subcomponent series for which revisions were $5.0 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 both for that year and for subsequent years.

Source data. This annual revision incorporated data from the following Federal statistical sources: Census Bureau economic census for 2002; Census Bureau annual surveys of manufactures, of merchant wholesale trade, and of retail trade for 2004 and revised monthly indicators of manufactures, of merchant wholesale trade, and of retail trade for 2003-2005; Census Bureau annual surveys of services for 2003 and 2004 (revised) and 2005 (preliminary) and of state and local governments for 2003 (revised) and 2004 (preliminary); Census Bureau monthly survey of construction put in place for 2003-2005 (revised); Census Bureau quarterly survey of services for 2005; Census Bureau residential finance survey for 2001; Census Bureau American housing survey for 2003; Census Bureau current population survey/housing vacancy survey for 2005; Federal Government budget data for fiscal years 2005 and 2006; Internal Revenue Service tabulations of tax returns for corporations for 2003 (revised) and 2004 (preliminary) and for sole proprietorships and partnerships for 2004; Bureau of Labor Statistics (BLS) quarterly census of employment and wages for 2005 (revised); Department of Agriculture farm statistics for 2003-2005; and BEA's international transactions accounts for 2003-2005 (revised).

Details about the sources of the major revisions to the NIPA components continue on page 17.

Domestic income and product

Gross domestic product (GDP). The level of current-dollar GDP was revised down for all 3 years: $10.4 billion, or 0.1 percent, for 2003, $21.8 billion, or 0.2 percent, for 2004, and $31.3 billion, or 0.3 percent, for 2005 (see table 6).

By major component, the revision to current-dollar GDP for 2003 primarily reflects downward revisions to PCE for durable goods, to investment in equipment and software, and to exports that were partly offset by a downward revision to imports. For 2004 and 2005, the revisions primarily reflect downward revisions to equipment and software and to PCE for nondurable goods that were partly offset by upward revisions to PCE for services and to state and local government spending and by a downward revision to imports; for 2005, the downward revisions were also offset by an upward revision to residential fixed investment.

Gross domestic income (GDI) and the statistical discrepancy. GDI, which measures the costs incurred and the incomes earned in the production of GDP, was revised down for all 3 years: $12.2 billion for 2003, $11.7 billion for 2004, and $47.4 billion for 2005.

For 2003, the revision to GDI primarily reflects downward revisions to net operating surplus and to supplements to wages and salaries that were partly offset by upward revisions to wages and salaries, to taxes on production and imports, and to consumption of fixed capital (CFC). The revision to net operating surplus was more than accounted for by a downward revision to domestic corporate profits with inventory valuation adjustment (IVA) and capital consumption adjustment (CCAdj).

For 2004, the revision to GDI primarily reflects downward revisions to supplements to wages and salaries and to wages and salaries that were partly offset by upward revisions to net operating surplus and to taxes on production and imports. The revision to net operating surplus primarily reflects upward revisions to domestic corporate profits with IVA and CCAdj and to proprietors' income with IVA and CCAdj that were partly offset by downward revisions to domestic net interest and miscellaneous payments, to rental income of persons with CCAdj, and to "business current transfer payments (net)."

For 2005, the revision to GDI reflects downward revisions to wages and salaries, to supplements to wages and salaries, and to net operating surplus that were partly offset by upward revisions to CFC and to taxes on production and imports. The revision to net operating surplus primarily reflects downward revisions to domestic corporate profits with IVA and CCAdj, to domestic net interest and miscellaneous payments, and to "business current transfer payments (net)" that were partly offset by an upward revision to proprietors' income with IVA and CCAdj.

The statistical discrepancy is the difference between GDP and GDI. (4) For 2003, the statistical discrepancy was revised up from $47.1 billion to $48.8 billion (but was unrevised at 0.4 percent of GDP). For 2004, the statistical discrepancy was revised down from $76.8 billion to $66.7 billion (from 0.7 percent to 0.6 percent of GDP). For 2005, the statistical discrepancy was revised up from $55.0 billion to $71.0 billion (from 0.4 percent to 0.6 percent of GDP). The revisions to the discrepancy for 2003 and 2005 reflect larger downward revisions to GDI than to GDP. For 2004, the revision to the discrepancy reflects a larger downward revision to GDP than to GDI.

Product-side components

Personal consumption expenditures (PCE) for goods was revised down for all 3 years: $6.3 billion for 2003, $24.7 billion for 2004, and $18.4 billion for 2005. For 2003, the revision was more than accounted for by motor vehicles and parts. For 2004 and 2005, the revisions were primarily accounted for by "goods other than motor vehicles and parts"; motor vehicles and parts contributed to the downward revision for 2004 and somewhat offset the downward revision for 2005.

"Goods other than motor vehicles and parts" was revised up $1.1 billion for 2003, was revised down $20.8 billion for 2004, and was revised down $19.8 billion for 2005. These revisions resulted from the incorporation of revised annual data on retail sales and food services sales for 2003 (benchmarked to data from the 2002 Economic Census), of newly available annual data for 2004, and of revised monthly sales data for 2005.

For 2004 and 2005, the revisions were primarily accounted for by downward revisions to food (specifically, both to "food purchased for off-premise consumption" and to "purchased meals and beverages"). A downward revision to gasoline and oil also contributed to the 2005 revision, reflecting the incorporation of revised petroleum supply data from the Energy Information Administration.

Motor vehicles and parts was revised down $7.4 billion for 2003, was revised down $3.9 billion for 2004, and was revised up $1.4 billion for 2005. For 2003 and 2004, the revisions were primarily accounted for by downward revisions to new trucks. For 2005, the revision reflects upward revisions to net purchases of used trucks and to net purchases of used autos that were mostly offset by a downward revision to new trucks. For all 3 years, the downward revisions to new trucks reflect the incorporation of newly available trade source data on retail transactions prices (see "Changes in Methodology"). For 2005, the upward revisions to used trucks and to used autos were accounted for by sales of used vehicles by business, reflecting the incorporation of newly available trade source data on business registrations by type (rental, lease, and other business vehicles) and estimates of retention periods for each type of vehicle. (5)

PCE for services was unrevised for 2003, was revised up $21.9 billion for 2004, and was revised up $15.1 billion for 2005. For 2003, upward revisions to housing services and to medical care services were offset by a downward revision to "other services." The revision to housing services was accounted for by "owner-occupied space rent," reflecting the incorporation of revised estimates of imputed mean rent that were based on information from the Census Bureau 2001 Residential Finance Survey on actual rental payments for tenant-occupied units by value class (of the units). (6) Rent-to-value ratios were then applied to owner-occupied units by value class to impute owner-occupied space rent.

The revision to medical care services reflects an upward revision to net medical and hospital insurance that was partly offset by a downward revision to hospitals and nursing homes. The revision to medical and hospital insurance reflects lower estimates of benefits, which are netted against premiums, that were based on the incorporation of newly available data on the ratio of benefits paid to premiums earned from the 2002 Economic Census. The revision to hospitals and nursing homes was accounted for by a downward revision to government hospitals that was partly offset by an upward revision to nonprofit hospitals. The revision to government hospitals reflects the incorporation of revised data for fiscal year 2003 and newly available data for fiscal year 2004 on state and local government sales of hospital services from the Census Bureau Government Finances. The revision to nonprofit hospitals reflects the incorporation of revised data on hospital expenses for fiscal year 2003 and newly available data for fiscal year 2004 from a trade source. The revision to "other services" was more than accounted for by "expense of handling life insurance and pension plans," reflecting the incorporation of revised Internal Revenue Service (IRS) data on profits of stock life insurance companies.

For 2004, the upward revision to PCE for services primarily reflects upward revisions to housing services and to "other services" that were partly offset by a downward revision to medical care services. The revision to housing services was primarily accounted for by "owner-occupied space rent," reflecting revised mean rents that were based on the information from the 2001 Census Bureau Residential Finance Survey. The revision to "other services" was primarily accounted for by upward revisions to education and research, reflecting the incorporation of newly available expense data from the National Center for Education Statistics, and to personal care services, reflecting the incorporation of revised Census Bureau service annual survey (SAS) data.

For 2005, the upward revision to PCE for services was accounted for by upward revisions to housing services, to recreation services, and to "other services" that were partly offset by a downward revision to medical care services. The revision to housing services was accounted for by upward revisions to both owner- and tenant-occupied space rent, reflecting the incorporation of newly available Census Bureau current population survey data on owner- and tenant-occupied housing units and, for owner-occupied housing, revised mean rents based on the information from the 2001 Census Bureau Residential Finance Survey. The revision to recreation services was accounted for by casino gambling, reflecting the incorporation of preliminary SAS data. The revision to "other services" reflects an upward revision to net foreign travel that was partly offset by a downward revision to personal business services. The revision to net foreign travel reflects revised estimates of travel and passenger fare imports and exports from BEA's international transactions accounts.

In personal business services, downward revisions to "services furnished without payment by financial intermediaries except life insurance carriers," to legal services, and to brokerage charges and investment counseling were partly offset by upward revisions to bank service charges and to "expense of handling life insurance and pension plans." payment by financial intermediaries except life insurance carriers" was accounted for by a downward revision to commercial The revision to "services furnished without bank services that was partly offset by an upward revision to services of other financial institutions, reflecting the incorporation of Call Report data and flow of funds data on the sector's deposit holdings and loan balances from the Federal Reserve Board (FRB). The revision to legal services reflects the incorporation of newly available SAS data. The revision to brokerage charges and investment counseling reflects the incorporation of newly available FRB flow of funds data on equity and debt holdings of households. The revision to bank service charges primarily reflects the incorporation of revised data on service charges on deposit accounts from the Federal Deposit Insurance Corporation and of newly available data on fee income and other operating income from the National Credit Union Administration. The revision to "expense of handling life insurance and pension plans" reflects the incorporation of newly available life insurance expense data from a trade source.

The downward revision to medical care services was more than accounted for by hospitals and nursing homes, reflecting the incorporation of newly available data for fiscal year 2004 on state and local government sales of hospital services from the Census Bureau Government Finances.

Nonresidential structures investment was revised up for all 3 years: $0.3 billion for 2003, $2.4 billion for 2004, and $3.5 billion for 2005. For 2005, small upward revisions to power and communication, to commercial and health care structures, and to "other" structures, reflecting the incorporation of revised Census Bureau data on the value of construction put in place, were partly offset by a downward revision to mining exploration, shafts, and wells, reflecting the incorporation of newly available trade source data on drilling footage. (7)

Equipment and software investment was revised down for all 3 years: $5.4 billion for 2003, $45.9 billion for 2004, and $67.6 billion for 2005.

For 2003, the revision was more than accounted for by transportation equipment; the largest contributors were aircraft and trucks, buses, and trailers. For 2004 and 2005, all the major aggregates were revised down: Information processing equipment and software, industrial equipment, transportation equipment, and "other" equipment. (For 2004, within information processing equipment and software, an upward revision to software somewhat offset the downward revision.)

The revisions to aircraft reflect the incorporation of revised shipments data from the Census Bureau Annual Survey of Manufactures (ASM) for 2003 and new ASM data for 2004. The revisions to trucks, buses, and trailers were mainly to light trucks, reflecting the incorporation of trade source data on transactions prices and wholesale prices (see "Changes in Methodology"). For 2004 and 2005, the revisions to computers and peripheral equipment and communication equipment (within information processing equipment and software), to industrial equipment, and to "other" equipment reflect the incorporation of newly available ASM data for 2004. For 2005, the revision to computers and peripheral equipment primarily reflects the adoption of a new methodology for estimating manufacturers' shipments of computers (see "Changes in Methodology"). The revisions to software (within information processing equipment and software) reflect the incorporation of revised product receipts data from the 2004 SAS and newly available data from the 2005 SAS; for 2005, the revision was more than accounted for by own-account software, primarily reflecting the incorporation of newly available data from the BLS occupational employment statistics.

Residential fixed investment was revised down $0.1 billion for 2003, was revised up $1.5 billion for 2004, and was revised up $14.1 billion for 2005. For 2005, an upward revision to single-family structures accounted for most of the revision and resulted from the incorporation of revised Census Bureau data on the value of construction put in place.

Change in private inventories was revised down $1.1 billion for 2003, was revised up $1.9 billion for 2004, and was revised up $2.4 billion for 2005. (8)

The change in farm inventories was revised up for all 3 years: $0.2 billion for 2003, $5.2 billion for 2004, and $8.7 billion for 2005. (9)

The change in private nonfarm inventories was revised down for all 3 years: $1.3 billion for 2003, $3.2 billion for 2004, and $6.2 billion for 2005. For 2004, the revision primarily reflects downward revisions to the inventory valuation adjustment (IVA), to wholesale trade inventories, and to manufacturing inventories that were partly offset by an upward revision to retail trade inventories and to inventories of "other" industries. For 2005, the revision primarily reflects downward revisions to manufacturing inventories, to the IVA, and to inventories of "other" industries that were partly offset by small upward revisions to retail trade inventories and to wholesale trade inventories.

For 2004, the revisions to inventories reflect the incorporation of newly available annual book value data from Census Bureau annual manufacturing and trade surveys and from IRS tabulations of tax return data for corporations and for sole proprietorships and partnerships. For 2005, the revisions to inventories reflect the incorporation of revised monthly book value data from Census Bureau monthly surveys. For both 2004 and 2005, the revisions to the IVA reflect the incorporation of newly available information from the Census Bureau on the accounting methods used in inventory reporting and revised BEA unit labor cost indexes.

Net exports of goods and services was revised up for all 3 years: $1.5 billion for 2003, $10.8 billion for 2004, and $9.8 billion for 2005. For 2003, the revision reflects a downward revision to imports of services that is largely offset by a downward revision to exports of services. For 2004, the revision primarily reflects a downward revision to imports of services and an upward revision to exports of services. For 2005, the revision reflects a downward revision to imports of services, a small upward revision to exports of goods, and a small downward revision to imports of goods.

The revisions reflect the annual revision to BEA's international transactions accounts (ITAs), which incorporated new and updated source data. (10)

For most components, the revisions to the ITAs for 2003-2005 were incorporated into the NIPAs at their "best level." As a result, there are small discontinuities between the NIPA estimates for 2002 and those for 2003 (table 7). For current-dollar net exports of goods and services (and for current-dollar GDP), the change from 2002 to 2003 was overstated by $0.1 billion. (The revisions to the ITAs for years before 2003 will be incorporated in the next comprehensive NIPA revision.)

Government consumption expenditures and gross investment was revised up for all 3 years: $0.6 billion for 2003, $10.3 billion for 2004, and $9.9 billion for 2005.

Federal Government spending was revised up $1.6 billion for 2003, was revised down $1.7 billion for 2004, and was revised up $0.6 billion for 2005. Defense spending was revised up $0.5 billion for 2003, was revised down $1.5 billion for 2004, and was revised up $2.2 billion for 2005. Within defense consumption expenditures, for 2005, an upward revision to compensation was mostly offset by a downward revision to services. The revision to compensation reflects the incorporation of revised Federal budget data for fiscal year 2005, preliminary budget data for fiscal year 2006, and revised tabulations from the BLS quarterly census of employment and wages. The revision to services reflects a revised allocation of spending, resulting from the revision to compensation within an annual control based on data from the Monthly Treasury Statement. (11)

State and local government spending was revised down $1.1 billion for 2003, was revised up $12.0 billion for 2004, and was revised up $9.2 billion for 2005. Consumption expenditures was revised down $1.0 billion for 2003, was revised up $12.6 billion for 2004, and was revised up $14.2 billion for 2005. For all 3 years, the revisions were primarily accounted for by downward revisions to "sales to other sectors," mainly health and hospital charges (a subtraction in the derivation of consumption expenditures) and by upward revisions to employee compensation that were partly offset by downward revisions to intermediate goods and services. (12) For all 3 years, the revisions to "sales to other sectors" reflect the incorporation of revised data for fiscal year 2003 and newly available data for fiscal year 2004 from the Census Bureau Government Finances. The revisions to compensation reflect the incorporation of revised data for fiscal year 2003 and newly available data for fiscal year 2004 on employer contributions to employee retirement plans from Government Finances, of newly available tabulations of employer contributions for employee health insurance from the Department of Health and Human Services Medical Expenditures Panel Survey for 2003, and of revised tabulations from the BLS quarterly census of employment and wages. The revisions to intermediate goods and services reflect the incorporation of revised and newly available data from Government Finances.

Income-side components

Compensation of employees, paid was revised up $4.4 billion for 2003, was revised down $37.1 billion for 2004, and was revised down $82.3 billion for 2005. For 2003, the revision reflects an upward revision to the adjustment "wage accruals less disbursements" that was partly offset by a downward revision to supplements to wages and salaries. For 2004, the revision primarily reflects downward revisions to supplements to wages and salaries and to the adjustment. For 2005, the revision reflects downward revisions to supplements to wages and salaries and to wage and salary disbursements.

For 2003 and 2004, the revisions to the adjustment "wage accruals less disbursements" reflect the incorporation of a new adjustment to account for the number of Friday paydays in a year (see "Changes in Methodology").

For all 3 years, the revisions to supplements were more than accounted for by downward revisions to employer contributions to private pension and insurance funds. Within employer contributions, the revisions were accounted for by downward revisions to employer contributions to private pension and profit-sharing plans, and for 2004 and 2005, employer contributions to group health insurance also contributed to the revisions.

The revisions to employer contributions to private pension and profit-sharing plans primarily reflect the incorporation of newly available Pension Benefit Guaranty Corporation data for 2003 and 2004 and newly available corporate financial data for 2005. For 2004, the revision to employer contributions to group health insurance reflects the incorporation of newly available tabulations of these contributions from the Department of Health and Human Services Medical Expenditures Panel Survey, and for 2005, the revision to these contributions reflects extrapolation from the new 2004 level.

For 2005, the revision to wage and salary disbursements reflects the incorporation of newly available data from the BLS quarterly census of employment and wages. The incorporation of these data resulted in new, seasonally adjusted quarterly estimates that were also adjusted for Friday paydays (see "Changes in Methodology").

Net operating surplus consists of net operating surplus of private enterprises (proprietors' income, rental income of persons, corporate profits, net interest, and business current transfer payments) and the current surplus of government enterprises. This component was revised down $26.3 billion for 2003, was revised up $14.5 billion for 2004, and was revised down $13.1 billion for 2005.

Consumption of fixed capital (CFC), which is the charge for the using up of private and government fixed capital, was revised up for all 3 years: $5.2 billion for 2003, $0.9 billion for 2004, and $30.7 billion for 2005. For 2003, the revision was more than accounted for by an upward revision to the private component of CFC, reflecting the incorporation of revised prices and revised BEA estimates of fixed investment for 2003. For 2005, the revision was mostly accounted for by an upward revision to the private component of CFC, reflecting the replacement of estimates derived from quarterly extrapolations with estimates derived from detailed annual source data, including revised BEA estimates of fixed investment and revised prices for 2003-2005. (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 for domestic business was revised down for all 3 years: $4.0 billion for 2003, $72.7 billion for 2004, and $102.3 billion for 2005. For 2004, the revision primarily reflects the incorporation of newly available IRS tax return data for both corporations and sole proprietorships and partnerships. For 2005, the revision resulted from the incorporation of revised BEA projections of IRS depreciation and amortization based on recent historical trends in the IRS depreciation and amortization estimates.

Private capital consumption adjustment (CCAdj) converts depreciation that is on a historical-cost (book value) basis--CCA--to depreciation that is on a current-cost (replacement) basis--CFC--and it is derived as the difference between private CCA and private CFC. Private CCAdj for domestic business was revised down for all 3 years: $9.2 billion for 2003, $68.9 billion for 2004, and $119.7 billion for 2005.

Proprietors' income with IVA and CCAdj was revised up for all 3 years: $1.1 billion for 2003, $21.5 billion for 2004, and $32.0 billion for 2005. For 2003, the revision was more than accounted for by farm proprietors' income. For 2004, the revision was mostly accounted for by nonfarm proprietors' income. For 2005, the revision reflects upward revisions to both nonfarm proprietors' income and farm proprietors' income.

Farm proprietors' income was revised up for all 3 years: $1.5 billion for 2003, $0.4 billion for 2004, and $9.4 billion for 2005. For 2003 and 2004, the upward revisions resulted from the incorporation of revised information from the U.S. Department of Agriculture (USDA) and revised BEA estimates of depreciation. For 2005, the revision resulted from the incorporation of newly available data from the USDA and revised BEA estimates of depreciation.

Nonfarm proprietors' income with IVA and CCAdj was revised down $0.3 billion for 2003, was revised up $21.1 billion for 2004, and was revised up $22.6 billion for 2005. For 2004 and 2005, the revisions reflect upward revisions to nonfarm proprietors' income without CCAdj that were partly offset by downward revisions to the CCAdj. For 2004, the revision to non farm proprietors' income was based on newly available IRS tabulations of sole proprietorship and partnership tax returns for 2004. For 2005, the revision to nonfarm proprietors' income was based primarily on revisions to the 2004 industry levels and to revisions to the industry-specific indicators used for extrapolation. (For more information about the CCAdj, see "Consumption of fixed capital.")

Rental income of persons with CCAdj was revised up $1.3 billion for 2003, was revised down $7.2 billion for 2004, and was revised down $0.1 billion for 2005. For 2004, the revision was primarily accounted for by a downward revision to rental income of persons without CCAdj for nonfarm residential dwellings, reflecting an upward revision to nonfarm permanent-site expenses--specifically property insurance, closing costs, and property taxes--that resulted from the incorporation of data from regular sources (see table 6).

Corporate profits with IVA and CCAdj was revised down $38.7 billion for 2003, was revised up $21.1 billion for 2004, and was revised down $21.2 billion for 2005. For 2003, the revision reflects downward revisions to profits before tax and to the CCAdj. For 2004, the revision reflects an upward revision to profits before tax that was partly offset by a downward revision to the CCAdj. For 2005, the revision reflects a downward revision to the CCAdj that was partly offset by an upward revision to profits before tax. (For more information about the CCAdj, see "Consumption of fixed capital.") The revisions to profits before tax resulted from the incorporation of revised 2003 and newly available 2004 IRS tabulations of corporate tax return data and of profits data for 2005 from regulatory agencies and public financial reports.

Domestic profits was revised down for 2003, was revised up for 2004, and was revised up for 2005; rest-of-the-world profits was revised down for all 3 years. The revisions to domestic profits primarily resulted from the incorporation of revised 2003 and newly available 2004 IRS tabulations of corporate tax return data and of other data from regular sources. The revisions to rest-of-the-world profits resulted from the incorporation of the annual revision of the international transactions accounts.

Net interest and miscellaneous payments was revised down for all 3 years: $3.8 billion for 2003, $20.4 billion for 2004, and $14.9 billion for 2005. The revisions were accounted for by revisions to net interest. (13)

For 2003, downward revisions to both monetary and imputed interest paid by domestic corporate business, a downward revision to imputed interest paid by the rest of the world, and an upward revision to imputed interest received by the rest of the world were partly offset by downward revisions to both monetary and imputed interest received by domestic corporate business, an upward revision to monetary interest paid by the rest of the world, and a downward revision to monetary interest received by the rest of the world.

For 2004, upward revisions to both monetary and imputed interest received by domestic business, an upward revision to imputed interest received by the rest of the world, and a downward revision to imputed interest paid by the rest of the world were partly offset by upward revisions to both monetary and imputed interest paid by domestic business, an upward revision to monetary interest paid by the rest of the world, and a downward revision to monetary interest received by the rest of the world.

For 2003 and 2004, the revisions to domestic monetary interest resulted 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 resulted from the incorporation of the results of the annual revision of the international transactions accounts (ITAs). The revisions to imputed interest paid resulted from the incorporation of revised Federal Reserve Board (FRB) tabulations of commercial bank Call Report data, of newly available trade source data, and of the results of the annual revision of the ITAs. The revisions to imputed interest received resulted from the revisions to imputed interest paid, from the incorporation of revised data from the FRB flow of funds accounts on business deposits at commercial banks, and from the annual revision of the ITAs.

For 2005, the downward revision to net interest was attributable to the revisions to the 2004 levels and to newly incorporated regular source data from regulatory agencies, particularly data from the FRB flow of funds accounts. (14)

Taxes on production and imports was revised up for all 3 years: $5.8 billion for 2003, $11.2 billion for 2004, and $19.3 billion for 2005. The revisions for all 3 years were primarily accounted for by revisions to state and local government property taxes and "other" taxes (largely business licenses and documentary and stamp taxes). Property taxes was revised up for all 3 years: $4.4 billion for 2003, $6.9 billion for 2004, and $9.1 billion for 2005; "other" taxes was revised up for all 3 years by somewhat smaller amounts. The revisions reflect the incorporation of revised state government and local government data for 2003, of revised state government and newly available local government data for 2004, and of newly available state government data for 2005 from Government Finances.

Subsidies was revised up for all 3 years: $1.2 billion for 2003, $1.2 billion for 2004, and $2.1 billion for 2005.

Business current transfer payments (net) 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)" was revised up $2.2 billion for 2003, was revised down $5.6 billion for 2004, and was revised down $6.0 billion for 2005. For 2004, the revision was mostly accounted for by a downward revision to payments to persons--specifically, to net insurance settlements to persons--reflecting the incorporation of newly available trade source data on actual losses incurred and premiums earned. For 2005, the revision reflects downward revisions to payments to the rest of the world and to payments to government that were partly offset by an upward revision to payments to persons. The revisions to payments to the rest of the world reflect the incorporation of the annual revision of the ITAs. The revision to payments to government is attributable to several items, including tobacco-related payments, and reflects the incorporation of newly available data from several sources. The revision to payments to persons is attributable to net insurance settlements and several other items and reflects the incorporation of newly available source data and judgmental extrapolation from the revised estimates for 2004.

Current surplus of government enterprises was revised up $0.4 billion for 2003, was revised down $2.0 billion for 2004, and was revised down $4.1 billion for 2005.

Net receipts of income from the rest of the world, which is excluded from GDI (and GDP) and is included in gross national income and gross national product (GNP), was revised down for all 3 years: $11.3 billion for 2003, $7.4 billion for 2004, and $1.8 billion for 2005. For 2003 and 2004, the revisions reflect downward revisions to income receipts from the rest of the world and smaller upward revisions to income payments to the rest of the world. For 2005, the revision reflects an upward revision to income payments from the rest of the world that was partly offset by an upward revision to income receipts from the rest of the world.

The revisions for all 3 years are primarily attributable to the incorporation of the results of the annual revision of the ITAs. Specifically, the revised estimates of income receipts primarily resulted from the incorporation of revised estimates of direct investment income receipts, reflecting the incorporation of updated source data. The revised estimates of income payments primarily resulted 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 2002 and for 2003 are discontinuous (table 7). For net receipts of income, the change from 2002 to 2003 was overstated by $2.2 billion. The discontinuity was primarily accounted for by reinvested earnings of foreign direct investment in the United States and resulted from the incorporation of BEA's benchmark survey data on foreign direct investment in the United States for 2002 as part of the annual revision of the ITAs. For GNP, which includes both net exports of goods and services and net receipts of income, the change was overstated by $2.3 billion.

Gross national product was revised down for all 3 years: $21.7 billion, or 0.2 percent, for 2003, $29.3 billion, or 0.2 percent, for 2004, and $33.1 billion, or 0.3 percent, for 2005. 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 was revised down $5.5 billion for 2003, was revised up $18.1 billion for 2004, and revised up $1.5 billion for 2005. 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 to personal income also reflect revisions to personal current transfer receipts and to contributions for government social insurance.

Compensation of employees, received was revised down for all 3 years: $10.7 billion for 2003, $22.3 billion for 2004, and $82.8 billion for 2005. The difference between these revisions and those to "compensation of employees, paid" primarily reflect the exclusion of the adjustment "wage accruals less disbursements."

Personal income receipts on assets 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 was revised down for all 3 years: $3.5 billion for 2003, $15.1 billion for 2004, and $0.7 billion for 2005. These revisions primarily reflect the revisions to net interest.

Personal dividend income consists of dividend income received by persons from all sources and is equal to net corporate dividends less dividends received by government. Personal dividend income was revised up for all 3 years: $1.5 billion for 2003, $46.5 billion for 2004, and $62.7 billion for 2005. These revisions resulted 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 consists of government social benefits and business current transfer payments to persons. Personal current transfer receipts was revised up $7.0 billion for 2003, was revised down $1.0 billion for 2004, and was revised up $1.3 billion for 2005.

Government social benefits to persons was revised up $3.2 billion for 2003, was revised up $3.9 billion for 2004, and was revised down $2.8 billion for 2005.

"Other current transfer receipts from business (net)" was revised up $3.8 billion for 2003, was revised down $4.9 billion for 2004, and was revised up $4.1 billion for 2005.

Contributions for government social insurance are deducted in the calculation of personal income, and they consist of both personal and employer contributions. Contributions for government social insurance was revised up for all 3 years: $2.0 billion for 2003, $4.2 billion for 2004, and $10.9 billion for 2005.

For 2005, Federal Government contributions for social insurance was revised up $5.6 billion, reflecting the incorporation of newly available data on taxable wages from the Social Security Administration. State and local contributions for social insurance was revised up $5.4 billion, primarily reflecting the incorporation of newly available data on state workers' compensation from Government Finances.

Personal current taxes was revised up $1.2 billion for 2003, was revised up $0.7 billion for 2004, and was revised down $4.6 billion for 2005. For 2005, the downward revision was more than accounted for by a downward revision to Federal income taxes that resulted from the incorporation of newly available data on personal income tax receipts from the Treasury Department.

Disposable personal income (DPI) was revised down $6.7 billion for 2003, was revised up $17.4 billion for 2004, and was revised up $6.2 billion for 2005. The revisions reflect the revisions to personal income and to personal current taxes.

Personal outlays consists of PCE, personal interest payments, and personal current transfer payments. This aggregate was revised down for all 3 years: $8.6 billion for 2003, $5.3 billion for 2004, and $1.2 billion for 2005. The revisions were primarily accounted for by revisions to PCE.

Personal saving--the difference between DPI and personal outlays--was revised up for all 3 years: $2.1 billion for 2003, $22.5 billion for 2004, and $7.3 billion for 2005. For 2003, the revision mostly reflects the downward revision to personal outlays. For 2004 and 2005, the upward revisions reflect both the upward revisions to DPI and the downward revisions to personal outlays. Mainly reflecting the revisions to personal saving, the personal saving rate--personal saving as a percentage of DPI--was unrevised at 2.1 percent for 2003, was revised up from 1.8 percent to 2.0 percent for 2004, and was revised up from -0.5 percent to -0.4 percent for 2005.

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 was revised down for all 3 years: $15.1 billion for 2003, $28.3 billion for 2004, and $56.0 billion for 2005. Gross saving as a percentage of gross national income was revised down for all 3 years: 0.1 percentage point to 13.3 percent for 2003, 0.2 percentage point to 13.2 percent for 2004, and 0.4 percentage point to 13.0 percent for 2005.

For 2003, a downward revision to net saving was partly offset by an upward revision to CFC. The revision to net saving reflects a downward revision to net private saving that was partly offset by an upward revision to net government saving. The downward revision to net private saving primarily reflects a downward revision to undistributed corporate profits with IVA and CCAdj that was partly offset by an upward revision to the "wage accruals less disbursements" adjustment. The revision to net government saving reflects upward revisions to Federal Government net saving and to state and local government net saving.

For 2004, the downward revision reflects a downward revision to net saving; CFC was revised up slightly. The revision to net saving reflects a downward revision to net private saving that was partly offset by an upward revision to net government saving. In net private saving, downward revisions to undistributed corporate profits with IVA and CCAdj and to the "wage accruals less disbursements" adjustment were partly offset by an upward revision to personal saving. The revision to net government saving reflects an upward revision to Federal Government net saving that was partly offset by a downward revision to state and local government net saving.

For 2005, a downward revision to net saving was partly offset by an upward revision to CFC. The revision to net saving reflects a downward revision to net private saving that was partly offset by an upward revision to net government saving. The revision to net private saving reflects a downward revision to undistributed corporate profits with IVA and CCAdj that was partly offset by an upward revision to personal saving. The revision to net government saving reflects an upward revision to Federal Government net saving that was partly offset by a downward revision to state and local government net saving.

"Net lending or net borrowing, NIPAs"--the difference between the sum of gross saving and the statistical discrepancy and the sum of gross domestic investment and capital account transactions (net)--was revised down $7.8 billion for 2003, was revised up $2.1 billion for 2004, and was revised up $11.2 billion for 2005. For 2003, the revision reflects a downward revision to gross saving that was partly offset by a downward revision to gross domestic investment. For 2004, the revision primarily reflects a downward revision to gross domestic investment that was largely offset by downward revisions to gross saving and to the statistical discrepancy. For 2005, the revision reflects a downward revision to gross domestic investment and an upward revision to the statistical discrepancy that was partly offset by a downward revision to gross saving.

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 (2005). In this annual revision, the source data for price indexes that are used for deflation and the source data that affect implicit prices were revised. (15) The prices used for deflation also reflect updated seasonal factors. In addition, the chain-type price indexes for nonresidential structures were affected by the incorporation of a new price index for warehouse construction into the estimates (see "Changes in Methodology").

The percent change from the preceding year in the price index for gross domestic purchases was revised up for all 3 years: 0.1 percentage point to 2.3 percent for 2003, 0.2 percentage point to 3.1 percent for 2004, and 0.3 percentage point to 3.5 percent for 2005 (see chart 1 and the addendum to table 8). The annual percent change in the price index for GDP was also revised up for all 3 years: 0.1 percentage point to 2.1 percent for 2003, 0.2 percentage point to 2.8 percent for 2004, and 0.2 percentage point to 3.0 percent for 2005.

For 2003, the upward revision to the price index for gross domestic purchases primarily reflects upward revisions to the price indexes for PCE for services and for state and local government spending. The revision to the price index for PCE for services was attributable to an upward revision to medical care services, reflecting an upward revision to the implicit price for medical and hospital insurance. The revision to the price index for state and local government spending was attributable to an upward revision to the implicit price for compensation--specifically, an upward revision to current-dollar compensation and a downward revision to total hours worked by state and local government employees.

For 2004, the revision to the price index for gross domestic purchases primarily reflects upward revisions to the price indexes for state and local government spending, for Federal defense spending, for residential fixed investment, and to PCE for services. The revision to the price index for state and local government spending reflects upward revisions to the implicit price for compensation and to the price index for state and local government structures. The revision to the price index for Federal defense spending reflects an upward revision to compensation. The revision to the price index for residential fixed investment reflects an upward revision to the Census Bureau's price index for single-family structures. Within the price index for PCE for services, an upward revision to the price index for medical care (primarily medical and hospital insurance) was partly offset by a downward revision to the price index for personal business services (primarily "services furnished without payment by financial intermediaries except life insurance carriers").

For 2005, the revision to the price index for gross domestic purchases primarily reflects upward revisions to the price indexes for state and local government spending, for Federal defense spending, and for PCE for services. The revision to the price index for state and local government spending was attributable to upward revisions to the price index for state and local government structures and to the implicit price for compensation. The revision to the price index for Federal defense spending was attributable to an upward revision to compensation. The revision to the price index for PCE for services was mainly attributable to the price index for medical care services, primarily reflecting revised BLS producer price indexes.

Changes in Methodology

As part of the annual revision to the NIPAs, several changes in methodology were incorporated. (16)

Motor vehicles. The estimates of final sales and change in private inventories for new light trucks and utility vehicles reflect new trade source data on retail prices and on wholesale prices, beginning with the estimates for the first quarter of 2003. The data on retail prices are monthly dealer transactions prices that reflect all discounts and customer rebates. The data on wholesale prices used for the valuation of inventories reflect factory-to-dealer rebates. The use of these data is part of BEA's initiative to acquire and incorporate real-time data into the economic accounts in order to improve the accuracy and reliability of the estimates. Previously, the source data for retail prices were manufacturers' suggested retail prices, not transactions prices. For wholesale prices, the valuation data that were used previously were producer price indexes.

As part of the 2005 annual revision, BEA introduced similar changes in the valuation of unit sales and inventory change for new autos, beginning with the estimates for the first quarter of 2005. In this annual revision, those changes have been extended back and are incorporated in the estimates for the first quarter of 2003 forward.

The methodology used to prepare quarterly estimates of PCE for used motor vehicles has been changed. Net transactions--the wholesale value of net used vehicle purchases from other sectors--is now calculated from data on retail sales of used motor vehicle dealers from the Census Bureau. Because net transactions in used vehicles does not represent new production, purchases by persons are offset in the accounts by sales by business and by government and by the value of net exports and change in private inventories. (After accounting for scrappage, the sum of these transactions equals zero.) Previously, PCE for used motor vehicles was a residual estimate after accounting for the other related transactions.

Newly available quarterly data for services. As part of the 2005 annual revision, BEA began incorporating data from the Census Bureau's quarterly services survey into its estimates. Since then, the Census Bureau has expanded the coverage of the survey. Beginning with the estimates for the first quarter of 2005, BEA is now incorporating newly available data from the expanded survey into the quarterly estimates of PCE for services of proprietary hospitals, nonprofit hospitals, proprietary and government nursing homes, and non-profit nursing homes. (17) Previously, the monthly and quarterly estimates for hospitals and nursing homes were extrapolated using proxy data, such as BLS employment, hours, and earnings data, the BLS employment cost index for hospitals, and the Center for Medicare and Medicaid Services index of hospital input prices. (18) As the Census Bureau's quarterly services survey expands to cover more industries, BEA will continue to incorporate the newly available quarterly data in order to improve the estimates of PCE for services.

Private investment in computers. The estimates of investment in computers in private investment in equipment and software are based on a commodity-flow method that takes account of domestic shipments, imports, and exports. This method now uses a new indicator for the interpolation and extrapolation of the quarterly estimates of domestic shipments. The new indicator is based on a weighted average of the percent change in the Federal Reserve Board's industrial production index (IPI) for computers and peripherals (75 percent) and of the percent change in the Census Bureau's Manufacturing Shipments (M3) of computers (25 percent). (19) Previously, only the M3 data were used for the interpolation and extrapolation.

Friday paydays. As part of this annual revision, the estimates of wage and salary accruals reflect an adjustment for the number of Fridays in a given year. In 2003, there were 52 Fridays, and in 2004, there were 53 Fridays. As a result, some of the wages disbursed in 2004 were actually accrued in 2003. This adjustment appears in gross domestic income as "wage accruals less disbursements." The seasonally adjusted quarterly estimates also reflect the adjustment for Friday paydays. BEA will continue to monitor the effects of the number of Fridays in each year to determine future adjustments.

Warehouse construction prices. The estimates of nonresidential investment in warehouses for the first quarter of 2005 forward are now deflated using the newly available BLS output price index for "new warehouse building construction." This index is the first of several price indexes for the nonresidential building construction industry that are being developed by BLS. BEA will incorporate these indexes into the nonresidential construction estimates as they become available. (20)

Federal government investment. As part of this annual revision, estimates of two components of Federal gross investment reflect adjustments to the quarterly pattern. The quarterly estimates of Air Force "other military equipment" are now interpolated from annual estimates based on Department of Defense financial data; previously, the quarterly estimates were based on quarterly financial data. In addition, nondefense vehicle investment is now seasonally adjusted.

NAPCS and improved estimates of PCE for services. The annual estimates of several components of PCE for services for 2005 forward now incorporate newly available revenue data based on the North American Product Classification System (NAPCS) from the Census Bureau's service annual survey. The components consist of the following: Tax return preparation services, employment agency fees, "other purchased intercity transportation services" spectator sports, live entertainment (excluding sports), and refuse collection services. The NAPCS-based revenue data better align with the component categories because the data reflect product detail. Previously, the data reflected industry detail. BEA will continue to incorporate the NAPCS-based data as they become avail able from the Census Bureau. (21)

Two new tables and two presentational changes. Two new tables and two presentational changes are introduced as part of this annual revision. Annual estimates of current receipts and expenditures for state governments will he presented in new NIPA table 3.20, and estimates for local governments in new NIPA table 3.21. Estimates for 1959 forward will be available on BEA's Web site (see the box "Data Availability").

Table 2.6, which presents monthly personal income and its disposition, will now show three additional items under "government social benefits to persons": "Old-age, survivors, disability, and health insurance benefits," "government unemployment benefits," and "other." Table 7.15, which shows the relation of net farm income in the NIPAs to net farm income published by the USDA, will include a "statistical differences" line that reflects updates to the USDA farm income estimates that have not yet been incorporated into the NIPAs.
Appendix A. Revisions to the National Income and Product Accounts
[Billions of dollars]

                                                          2003

                                                   Revised    Revision

Account 1. Domestic Income and Product Account

Compensation of employees, paid                    6,331.1        4.4
  Wage and salary accruals                         5,133.4       16.7
    Disbursements                                  5,118.4        1.7
    Wage accruals less disbursements                  15.0       15.0
  Supplements to wages and salaries                1,197.7      -12.3
Taxes on production and imports                    8,072.0        5.8
Less: Subsidies                                       47.9        1.2
Net operating surplus                              2,485.1      -26.3
  Private enterprises                              2,483.4      -26.7
  Current surplus of government enterprises            1.7        0.4
Consumption of fixed capital                       1,336.5        5.2

Gross domestic income                             10,912.0      -12.2
Statistical discrepancy                               48.8        1.7

GROSS DOMESTIC PRODUCT                            10,960.8      -10.4
Personal consumption expenditures                  7,703.6       -6.3
  Durable goods                                      942.7       -7.4
  Nondurable goods                                 2,190.2        1.2
  Services                                         4,570.8        0.0
Gross private domestic investment                  1,664.1       -6.3
  Fixed investment                                 1,649.8       -5.1
    Nonresidential                                 1,077.4       -5.0
      Structures                                     277.2        0.3
      Equipment and software                         800.2       -5.4
    Residential                                      572.4       -0.1
  Change in private inventories                       14.3       -1.1
Net exports of goods and services                   -499.4        1.5
  Exports                                          1,040.8       -4.8
  Imports                                          1,540.2       -0.3
Government consumption expenditures
    and gross investment                           2,092.5        0.6
  Federal                                            756.4        1.6
    National defense                                 497.2        0.5
    Nondefense                                       259.2        1.0
  State and local                                  1,336.0       -1.1

GROSS DOMESTIC PRODUCT                            10,960.8      -10.4

Account 2. Private Enterprise Income Account

Income payments on assets                          1,992.6      -12.0
  Interest and miscellaneous payments              1,909.0      -15.9
  Dividend payments to the rest of the world          68.9        1.2
  Reinvested earnings on foreign direct
    investment in the United States                   14.7        2.7
Business current transfer payments (net)              83.8        2.2
  To persons (net)                                    34.3        3.8
  To government (net)                                 47.9       -1.0
  To the rest of the world (net)                       1.7       -0.6
Proprietors' income with inventory valuation
  and capital consumption adjustments                811.3        1.1
Rental income of persons with capital
  consumption adjustment                             133.0       13.0
Corporate profits with inventory valuation
    and capital consumption adjustments              993.1      -38.7
  Taxes on corporate income                          243.3       11.2
    To government                                    233.1       11.2
    To the rest of the world                          10.2        0.0
  Profits after tax with inventory valuation
      and capital consumption adjustments            749.9      -49.8
    Net dividends                                    424.7        1.5
    Undistributed corporate profits with
      inventory valuation and capital
      consumption adjustments                        325.1     -514.0

USES OF PRIVATE ENTERPRISE INCOME                  4,013.8      -46.0
Net operating surplus                              2,483.4      -26.7
Income receipts on assets                          1,530.4      -19.3
  Interest                                         1,281.3      -12.6
  Dividend receipts from the rest of the world       100.9        3.4
  Reinvested earnings on U.S. direct investment
    abroad                                           148.2      -10.0

SOURCES OF PRIVATE ENTERPRISE INCOME               4,013.8      -46.0

Account 3. Personal Income and Outlay Account

Personal current taxes                             1,001.1        1.2
Personal outlays                                   7,987.7       -8.6
  Personal consumption expenditures                7,703.6       -6.3
  Personal interest payments                         182.5       -0.7
  Personal current transfer payments                 101.5       -1.8
    To government                                     61.3       -0.8
    To the rest of the world (net)                    40.2       -1.0
Personal saving                                      174.9        2.1

PERSONAL TAXES, OUTLAYS, AND SAVING                9,163.6       -5.5
Compensation of employees, received                6,310.4      -10.7
  Wage and salary disbursements                    5,112.7        1.6
    Domestic                                       5,109.9        1.7
    Rest of the world                                  2.8       -0.2
  Supplements to wages and salaries                1,197.7      -12.3
    Employer contributions for employee
      pension and insurance funds                    815.6      -14.4
    Employer contributions for government
      social insurance                               382.1        2.1
Proprietors' income with inventory valuation
  and capital consumption adjustments                811.3        1.1
Rental income of persons with capital
  consumption adjustment                             133.0        1.3
Personal income receipts on assets                 1,336.6       -2.1
  Personal interest income                           914.1       -3.5
  Personal dividend income                           422.6        1.5
Personal current transfer receipts                 1,351.0        7.0
  Government social benefits                       1,316.7        3.2
  From business (net)                                343.0        3.8
Less: Contributions for government
  social insurance                                   778.6        2.0
PERSONAL INCOME                                    9,163.6       -5.5

Account 4. Government Receipts and Expenditures Account

Consumption expenditures                           1,736.5       -0.2
Current transfer payments                          1,343.2        3.2
  Government social benefits                       1,319.5        3.1
    To persons                                     1,316.7        3.2
    To the rest of the world                           2.8        0.0
  Other current transfer payments
    to the rest of the world (net)                    23.6        0.0
Interest payments                                    300.6       -0.8
Subsidies                                             47.9        1.2
Less: Wage accruals less disbursements                 0.0        0.0
Net government saving                               -392.5       14.0
  Federal                                           -372.1       10.6
  State and local                                    -20.4        3.4

GOVERNMENT CURRENT EXPENDITURES AND NET SAVING     3,035.6       17.5
Current tax receipts                               2,050.3       18.5
  Personal current taxes                           1,001.1        1.2
  Taxes on production and imports                    807.2        5.8
  Taxes on corporate income                          233.1       11.2
  Taxes from the rest of the world                     8.9        0.4
Contributions for government social insurance        778.6        2.0
Income receipts on assets                             95.8       -1.8
  Interest and miscellaneous receipts                 93.7      -17.0
  Dividends                                            2.2        0.1
Current transfer receipts                            109.2       -1.7
  From business (net)                                 47.9       -1.0
  From persons                                        61.3       -0.8
Current surplus of government enterprises              1.7        0.4
GOVERNMENT CURRENT RECEIPTS                        3,035.6       17.5

Account 5. Foreign Transactions Current Account

Exports of goods and services                      1,040.8      -48.0
Income receipts from the rest of the world           336.8       -6.9
  Wage and salary receipts                             2.8       -0.2
  Income receipts on assets                          334.0       -6.7
    Interest                                          84.9       -0.1
    Dividends                                        100.9        3.4
    Reinvested earnings on U.S.
      direct investment abroad                       148.2      -10.0

CURRENT RECEIPTS FROM THE REST OF THE WORLD        1,377.6      -11.7
Imports of goods and services                      1,540.2       -6.3
Income payments to the rest of the world             280.0        4.4
  Wage and salary payments                             8.5        0.0
  Income payments on assets                          271.4        4.3
    Interest                                         187.8        0.4
    Dividends                                         68.9        1.2
    Reinvested earnings on foreign direct
      investment in the United States                 14.7        2.7
Current taxes and transfer payments
    to the rest of the world (net)                    69.7       -2.0
  From persons (net)                                  40.2       -1.0
  From government (net)                               17.6       -0.4
  From business (net)                                 11.9       -0.5
Balance on current account, national
  income and product accounts                       -512.3       -7.8
CURRENT PAYMENTS TO THE REST OF THE WORLD
  AND BALANCE ON CURRENT ACCOUNT                   1,377.6      -11.7

Account 6. Domestic Capital Account

Gross domestic investment                          2,020.0       -5.6
  Private fixed investment                         1,649.8       -5.1
  Government fixed investment                        356.0        0.7
  Change in private inventories                       14.3       -1.1
Capital account transactions (net)                     3.2        0.0
Net lending or net borrowing (-),
  national income and product accounts              -515.5      -78.0

GROSS DOMESTIC INVESTMENT, CAPITAL ACCOUNT
  TRANSACTIONS, AND NET LENDING                    1,507.8      -13.3
Net saving                                           122.5      -20.2
  Personal saving                                    174.9        2.1
  Undistributed corporate profits with
    inventory valuation and capital consumption
    adjustments                                      325.1      -51.4
  Wage accruals less disbursements (private)          15.0       15.0
  Net government saving                             -392.5       14.0
Plus: Consumption of fixed capital                 1,336.5        5.2
  Private                                          1,118.3        5.5
  Government                                         218.2       -0.3
    General government                               183.2       -0.3
    Government enterprises                            35.0       -0.1
Equals: Gross saving                               1,459.0      -15.1
Statistical discrepancy                               48.8        1.7
GROSS SAVING AND STATISTICAL DISCREPANCY           1,507.8      -13.3

Account 7. Foreign Transactions Capital Account

BALANCE ON CURRENT ACCOUNT, NATIONAL INCOME
  AND PRODUCT ACCOUNTS                              -512.3       -7.8
Capital account transactions (net)                     3.2        0.0
Net lending or net borrowing (-),
  national income and product accounts              -515.5       -7.8
CAPITAL ACCOUNT TRANSACTIONS (NET) AND NET
  LENDING, NATIONAL INCOME AND PRODUCT ACCOUNTS     -512.3       -7.8

                                                          2004

                                                   Revised    Revision

Account 1. Domestic Income and Product Account

Compensation of employees, paid                    6,656.3      -37.1
  Wage and salary accruals                         5,383.2      -12.0
    Disbursements                                  5,398.2        3.0
    Wage accruals less disbursements                 -15.0      -15.0
  Supplements to wages and salaries                1,273.2      -24.9
Taxes on production and imports                      864.0       11.2
Less: Subsidies                                       44.7        1.2
Net operating surplus                              2,733.9       14.5
  Private enterprises                              2,738.9       16.5
  Current surplus of government enterprises           -5.0       -2.0
Consumption of fixed capital                       1,436.2        0.9

Gross domestic income                             11,645.8      -11.7
Statistical discrepancy                               66.7      -10.1

GROSS DOMESTIC PRODUCT                            11,712.5      -21.8
Personal consumption expenditures                  8,211.5       -2.8
  Durable goods                                      986.3       -1.5
  Nondurable goods                                 2,345.2      -23.1
  Services                                         4,880.1       21.9
Gross private domestic investment                  1,888.0      -40.1
  Fixed investment                                 1,830.6      -42.0
    Nonresidential                                 1,155.3      -43.5
      Structures                                     300.8        2.4
      Equipment and software                         854.5      -45.9
    Residential                                      675.3        1.5
  Change in private inventories                       57.3        1.9
Net exports of goods and services                    -13.2       10.8
  Exports                                          1,178.1        4.3
  Imports                                          1,791.4       -6.4
Government consumption expenditures
    and gross investment                           2,226.2       10.3
  Federal                                            825.9       -1.7
    National defense                                 551.2       -1.5
    Nondefense                                       274.7       -0.2
  State and local                                  1,400.3       12.0

GROSS DOMESTIC PRODUCT                            11,712.5      -21.8

Account 2. Private Enterprise Income Account

Income payments on assets                          2,221.5       39.1
  Interest and miscellaneous payments              2,095.7       37.9
  Dividend payments to the rest of the world          69.8        1.4
  Reinvested earnings on foreign direct
    investment in the United States                   56.0       -0.2
Business current transfer payments (net)              85.5       -5.6
  To persons (net)                                    28.1       -4.9
  To government (net)                                 49.8       -1.7
  To the rest of the world (net)                       7.5        0.9
Proprietors' income with inventory valuation
  and capital consumption adjustments                911.1       21.5
Rental income of persons with capital
  consumption adjustment                             127.0       -7.2
Corporate profits with inventory valuation
    and capital consumption adjustments            1,182.6       21.1
  Taxes on corporate income                          300.1       29.0
    To government                                    287.6       28.7
    To the rest of the world                          12.5        0.2
  Profits after tax with inventory valuation
      and capital consumption adjustments            882.5       -7.8
    Net dividends                                    539.5       46.5
    Undistributed corporate profits with
      inventory valuation and capital
      consumption adjustments                        343.0      -54.3

USES OF PRIVATE ENTERPRISE INCOME                  4,527.7       68.8
Net operating surplus                              2,738.9       16.5
Income receipts on assets                          1,788.8       52.4
  Interest                                         1,466.7       59.8
  Dividend receipts from the rest of the world       116.7       12.4
  Reinvested earnings on U.S. direct investment
    abroad                                           185.4      -19.8

SOURCES OF PRIVATE ENTERPRISE INCOME               4,527.7       68.8

Account 3. Personal Income and Outlay Account

Personal current taxes                             1,049.8        0.7
Personal outlays                                   8,507.2       -5.3
  Personal consumption expenditures                8,211.5       -2.8
  Personal interest payments                         186.0       -0.7
  Personal current transfer payments                 109.7       -1.8
    To government                                     66.8       -1.8
    To the rest of the world (net)                    42.9        0.0
Personal saving                                      174.3       22.5

PERSONAL TAXES, OUTLAYS, AND SAVING                9,731.4       18.1
Compensation of employees, received                6,665.3      -22.3
  Wage and salary disbursements                    5,392.1        2.7
    Domestic                                       5,389.2        2.8
    Rest of the world                                  2.9       -0.1
  Supplements to wages and salaries                1,273.2      -24.9
    Employer contributions for employee
      pension and insurance funds                    866.1      -29.4
    Employer contributions for government
      social insurance                               407.1        4.4
Proprietors' income with inventory valuation
  and capital consumption adjustments                911.1       21.5
Rental income of persons with capital
  consumption adjustment                             127.0       -7.2
Personal income receipts on assets                 1,427.9      314.0
  Personal interest income                           890.8      -15.1
  Personal dividend income                           537.1       46.5
Personal current transfer receipts                 1,426.5       -1.0
  Government social benefits                       1,398.4        3.9
  From business (net)                                 28.1       -4.9
Less: Contributions for government
  social insurance                                   826.4        4.2
PERSONAL INCOME                                    9,731.4       18.1

Account 4. Government Receipts and Expenditures Account

Consumption expenditures                           1,854.8       11.4
Current transfer payments                          1,427.2        3.8
  Government social benefits                       1,401.4        3.9
    To persons                                     1,398.4        3.9
    To the rest of the world                           3.0        0.0
  Other current transfer payments
    to the rest of the world (net)                    25.9        0.0
Interest payments                                    312.7        2.4
Subsidies                                             44.7        1.2
Less: Wage accruals less disbursements                 0.0        0.0
Net government saving                               -394.9       17.4
  Federal                                           -382.0       24.5
  State and local                                    -12.9       -7.0

GOVERNMENT CURRENT EXPENDITURES AND NET SAVING     3,244.5       36.3
Current tax receipts                               2,211.1       41.2
  Personal current taxes                           1,049.8        0.7
  Taxes on production and imports                    864.0       11.2
  Taxes on corporate income                          287.6       28.7
  Taxes from the rest of the world                     9.7        0.5
Contributions for government social insurance        826.4        4.2
Income receipts on assets                            954.0       -0.6
  Interest and miscellaneous receipts                 93.0       -0.6
  Dividends                                            2.4        0.0
Current transfer receipts                            116.6       -3.5
  From business (net)                                 49.8       -1.7
  From persons                                        66.8       -1.8
Current surplus of government enterprises             -5.0       -2.0
GOVERNMENT CURRENT RECEIPTS                        3,244.5       36.3

Account 5. Foreign Transactions Current Account

Exports of goods and services                      1,178.1        4.3
Income receipts from the rest of the world           410.2       -5.2
  Wage and salary receipts                             2.9       -0.1
  Income receipts on assets                          407.3       -0.1
    Interest                                         105.3        2.4
    Dividends                                        116.7       12.4
    Reinvested earnings on U.S.
      direct investment abroad                       185.4      -19.8

CURRENT RECEIPTS FROM THE REST OF THE WORLD        1,588.3       -0.9
Imports of goods and services                      1,791.4       -0.4
Income payments to the rest of the world             363.9        2.2
  Wage and salary payments                             8.9        0.1
  Income payments on assets                          355.0        2.2
    Interest                                         229.2        1.0
    Dividends                                         69.8        1.4
    Reinvested earnings on foreign direct
      investment in the United States                 56.0       -0.2
Current taxes and transfer payments
    to the rest of the world (net)                    82.1        0.6
  From persons (net)                                  42.9        0.0
  From government (net)                               19.2       -0.5
  From business (net)                                 20.0        1.1
Balance on current account, national
  income and product accounts                        -49.1        2.6
CURRENT PAYMENTS TO THE REST OF THE WORLD
  AND BALANCE ON CURRENT ACCOUNT                   1,588.3       -0.9

Account 6. Domestic Capital Account

Gross domestic investment                          2,259.4      -41.2
  Private fixed investment                         1,830.6      -42.0
  Government fixed investment                        371.4       -1.1
  Change in private inventories                       57.3        1.9
Capital account transactions (net)                     2.3        0.7
Net lending or net borrowing (-),
  national income and product accounts              -651.3        2.1

GROSS DOMESTIC INVESTMENT, CAPITAL ACCOUNT
  TRANSACTIONS, AND NET LENDING                    1,610.3      -38.6
Net saving                                           107.5      -29.3
  Personal saving                                    174.3       22.5
  Undistributed corporate profits with
    inventory valuation and capital consumption
    adjustments                                      343.0      -54.3
  Wage accruals less disbursements (private)         -15.0      -15.0
  Net government saving                             -394.9       17.4
Plus: Consumption of fixed capital                 1,436.2        0.9
  Private                                          1,205.4       -0.8
  Government                                         230.8        1.7
    General government                               192.7        0.7
    Government enterprises                            38.0        0.8
Equals: Gross saving                               1,543.7      -28.3
Statistical discrepancy                               66.7      -10.1
GROSS SAVING AND STATISTICAL DISCREPANCY           1,610.3      -38.6

Account 7. Foreign Transactions Capital Account

BALANCE ON CURRENT ACCOUNT, NATIONAL INCOME
  AND PRODUCT ACCOUNTS                               -49.1        2.6
Capital account transactions (net)                     2.3        0.7
Net lending or net borrowing (-),
  national income and product accounts              -651.3        2.1
CAPITAL ACCOUNT TRANSACTIONS (NET) AND NET
  LENDING, NATIONAL INCOME AND PRODUCT ACCOUNTS     -649.1        2.6

                                                          2005

                                                   Revised    Revision

Account 1. Domestic Income and Product Account

Compensation of employees, paid                    7,036.6      -82.3
  Wage and salary accruals                         5,671.1      -46.9
    Disbursements                                  5,671.1      -46.9
    Wage accruals less disbursements                   0.0        0.0
  Supplements to wages and salaries                1,365.5      -35.3
Taxes on production and imports                      922.4       19.3
Less: Subsidies                                       57.3        2.1
Net operating surplus                              2,878.2      -13.1
  Private enterprises                              2,893.6       -8.9
  Current surplus of government enterprises          -15.4       -4.1
Consumption of fixed capital                       1,604.8       30.7

Gross domestic income                             12,384.8      -47.4
Statistical discrepancy                               71.0       16.0

GROSS DOMESTIC PRODUCT                            12,455.8      -31.3
Personal consumption expenditures                  8,742.4       -3.3
  Durable goods                                    1,033.1        6.6
  Nondurable goods                                 2,539.3      -25.1
  Services                                         5,170.0       15.1
Gross private domestic investment                  2,057.4      -47.6
  Fixed investment                                 2,036.2      -49.9
    Nonresidential                                 1,265.7      -64.1
      Structures                                     338.6        3.5
      Equipment and software                         927.1      -67.6
    Residential                                      770.4       14.1
  Change in private inventories                       21.3        2.4
Net exports of goods and services                   -716.7        9.8
  Exports                                          1,303.1        1.9
  Imports                                          2,019.9       -7.8
Government consumption expenditures
    and gross investment                           2,372.8        9.9
  Federal                                            878.3        0.6
    National defense                                 589.3        2.2
    Nondefense                                       289.0       -1.6
  State and local                                  1,494.4        9.2

GROSS DOMESTIC PRODUCT                            12,455.8      -31.3

Account 2. Private Enterprise Income Account

Income payments on assets                          2,552.4        ...
  Interest and miscellaneous payments              2,411.4        ...
  Dividend payments to the rest of the world          81.8        5.5
  Reinvested earnings on foreign direct
    investment in the United States                   59.2        6.9
Business current transfer payments (net)              74.2       -6.0
  To persons (net)                                    45.7        4.1
  To government (net)                                 30.1       -3.7
  To the rest of the world (net)                      -1.6       -6.4
Proprietors' income with inventory valuation
  and capital consumption adjustments                970.7       32.0
Rental income of persons with capital
  consumption adjustment                              72.8       -0.1
Corporate profits with inventory valuation
    and capital consumption adjustments            1,330.7      -21.2
  Taxes on corporate income                          399.3       21.2
    To government                                    384.4       20.5
    To the rest of the world                          14.9        0.6
  Profits after tax with inventory valuation
      and capital consumption adjustments            931.4      -42.4
    Net dividends                                    576.9       62.7
    Undistributed corporate profits with
      inventory valuation and capital
      consumption adjustments                        354.5     -105.1

USES OF PRIVATE ENTERPRISE INCOME                  5,000.7        ...
Net operating surplus                              2,893.6       -8.9
Income receipts on assets                          2,107.1        ...
  Interest                                         1,769.1        ...
  Dividend receipts from the rest of the world       320.0       38.6
  Reinvested earnings on U.S. direct investment
    abroad                                            18.0      -34.8

SOURCES OF PRIVATE ENTERPRISE INCOME               5,000.7        ...

Account 3. Personal Income and Outlay Account

Personal current taxes                             1,203.1       -4.6
Personal outlays                                   9,070.9       -1.2
  Personal consumption expenditures                8,742.4       -3.3
  Personal interest payments                         209.4        3.5
  Personal current transfer payments                 119.2       -1.2
    To government                                     72.0       -2.8
    To the rest of the world (net)                    47.1        1.5
Personal saving                                      -34.8        7.3

PERSONAL TAXES, OUTLAYS, AND SAVING               10,239.2        1.5
Compensation of employees, received                7,030.3      -82.8
  Wage and salary disbursements                    5,664.8      -47.5
    Domestic                                       5,661.9      -47.3
    Rest of the world                                  2.9       -0.1
  Supplements to wages and salaries                1,365.5      -35.3
    Employer contributions for employee
      pension and insurance funds                    933.2      -41.8
    Employer contributions for government
      social insurance                               432.3        6.5
Proprietors' income with inventory valuation
  and capital consumption adjustments                970.7       32.0
Rental income of persons with capital
  consumption adjustment                              72.8       -0.1
Personal income receipts on assets                 1,519.4       62.0
  Personal interest income                           945.0       -0.7
  Personal dividend income                           574.4       62.7
Personal current transfer receipts                 1,526.6        1.3
  Government social benefits                       1,480.9       -2.8
  From business (net)                                 45.7        4.1
Less: Contributions for government
  social insurance                                   880.6       10.9
PERSONAL INCOME                                   10,239.2        1.5

Account 4. Government Receipts and Expenditures Account

Consumption expenditures                           1,975.7       13.1
Current transfer payments                          1,517.8       -0.3
  Government social benefits                       1,484.0       -3.0
    To persons                                     1,480.9       -2.6
    To the rest of the world                           3.1       -0.2
  Other current transfer payments
    to the rest of the world (net)                    33.9        2.8
Interest payments                                    348.0        6.7
Subsidies                                             57.3        2.1
Less: Wage accruals less disbursements                 0.0        0.0
Net government saving                               -312.5       11.0
  Federal                                           -309.2       17.3
  State and local                                     -3.3       -6.3

GOVERNMENT CURRENT EXPENDITURES AND NET SAVING     3,586.3       32.6
Current tax receipts                               2,520.7       36.4
  Personal current taxes                           1,203.1       -4.6
  Taxes on production and imports                    922.4       19.3
  Taxes on corporate income                          384.4       20.5
  Taxes from the rest of the world                    10.8        1.2
Contributions for government social insurance        880.6       10.9
Income receipts on assets                             98.3       -4.0
  Interest and miscellaneous receipts                 95.8       -4.0
  Dividends                                            2.4       -0.1
Current transfer receipts                            102.1       -6.5
  From business (net)                                 30.1       -3.7
  From persons                                        72.0       -2.8
Current surplus of government enterprises            -15.4       -4.1
GOVERNMENT CURRENT RECEIPTS                        3,586.3       32.6

Account 5. Foreign Transactions Current Account

Exports of goods and services                      1,303.1        1.9
Income receipts from the rest of the world           513.3        5.7
  Wage and salary receipts                             2.9       -0.1
  Income receipts on assets                          510.4        5.8
    Interest                                         172.4        2.0
    Dividends                                        320.0       38.6
    Reinvested earnings on U.S.
      direct investment abroad                        18.0      -34.8

CURRENT RECEIPTS FROM THE REST OF THE WORLD        1,816.5        7.7
Imports of goods and services                      2,019.9       -7.8
Income payments to the rest of the world             481.5        7.5
  Wage and salary payments                             9.2        0.4
  Income payments on assets                          472.2        7.0
    Interest                                         331.2       -5.4
    Dividends                                         81.8        5.5
    Reinvested earnings on foreign direct
      investment in the United States                 59.2        6.9
Current taxes and transfer payments
    to the rest of the world (net)                    86.6       -2.8
  From persons (net)                                  47.1        1.5
  From government (net)                               26.1        1.3
  From business (net)                                 13.3       -5.8
Balance on current account, national
  income and product accounts                       -771.4       10.9
CURRENT PAYMENTS TO THE REST OF THE WORLD
  AND BALANCE ON CURRENT ACCOUNT                   1,816.5        7.7

Account 6. Domestic Capital Account

Gross domestic investment                          2,454.5      -50.8
  Private fixed investment                         2,036.2      -49.9
  Government fixed investment                        397.1       -3.2
  Change in private inventories                       21.3        2.4
Capital account transactions (net)                     4.4       -0.3
Net lending or net borrowing (-),
  national income and product accounts              -775.8       11.2

GROSS DOMESTIC INVESTMENT, CAPITAL ACCOUNT
  TRANSACTIONS, AND NET LENDING                    1,683.1      -39.9
Net saving                                             7.2      -86.7
  Personal saving                                    -34.8        7.3
  Undistributed corporate profits with
    inventory valuation and capital consumption
    adjustments                                      354.5     -105.1
  Wage accruals less disbursements (private)           0.0        0.0
  Net government saving                             -312.5       11.0
Plus: Consumption of fixed capital                 1,604.8       30.7
  Private                                          1,352.6       25.6
  Government                                         252.2        5.2
    General government                               207.2        3.7
    Government enterprises                            45.1        1.6
Equals: Gross saving                               1,612.0      -56.0
Statistical discrepancy                               71.0       16.0
GROSS SAVING AND STATISTICAL DISCREPANCY           1,683.1      -39.9

Account 7. Foreign Transactions Capital Account

BALANCE ON CURRENT ACCOUNT, NATIONAL INCOME
  AND PRODUCT ACCOUNTS                              -771.4       10.9
Capital account transactions (net)                     4.4       -0.3
Net lending or net borrowing (-),
  national income and product accounts              -775.8       11.2
CAPITAL ACCOUNT TRANSACTIONS (NET) AND NET
  LENDING, NATIONAL INCOME AND PRODUCT ACCOUNTS     -771.4       10.9


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 Andrew W. Hodge, Alyssa E. Holdren, Arnold J. Katz, Charles I. Mead, Brian C. Moyer, David F. Sullivan, and Christopher M. Swann--coordinated and conducted the estimation and review process.

Eugene P. Seskin and Shelly Smith wrote the article. Duane G. Hackmann, Clark F. Schier, Shaunda M. Villones, and Teresa L. Weadock prepared analyses and other review materials for both the article and the news release.

Other BEA staff who made significant contributions to the revision are listed below by area of expertise.

Personal consumption expenditures: Clinton P. McCully. Goods: Tony Troy, Harvey L. Davis, Jr., Everette P. Johnson, Matthew D. Tschetter. Services: Michael Armah, Robert N. Ganz III, Brendan J. Leary, Dennis R. Weikel.

Investment and foreign transactions: Paul R. Lally. Inventories, foreign transactions, and prices: Jennifer A. Ribarsky, Lisa A. Dawn, John W. Drewry, Soo Jeong Kim, Todd P. Siebeneck, Enrico Tan. Structures, equipment, and software: Jeffrey W. Crawford, Velma P. Henry, Bonnie A. Retus, Todd P. Siebeneck, Linden L. Webber.

Federal Government: Pamela A. Kelly, Peter G. Beall, Jennifer A. Bennett, Andrew P. Cairns, Andrea L. Cook, Gregory J. Kuczura, Raymen G. Labella, Gilda D. Lee, Benjamin A. Mandel, Farah Naz, Michelle D. Robinson, Mary L. Roy, Benyam Tsehaye, Andrew E. Vargo, Bryan A. Williams.

Special studies: Steven Payson, Charlotte A. Bond, Wanda Y. Chambers, Debasis Chaudhuri, Gary W. Davis, Michael A. Grawe, Robert J. Kornfeld, Mark A. Ledbetter, Christopher B. Mbu, Allison S. Mirkin.

State and local government: Bruce E. Baker, Steven J. Andrews, Benjamin D. Cowan, Aya Hamano, Erin M. Ludlow, Rebecca A. Rider.

Government review: Florence H. Campi, D. Timothy Dobbs.

Computer systems and operations: Robert A. Hill, Michael J. Boehm, Chenika Harris, Scott G. He, Soo N. Kim, Douglas J. Klear, Pauline Lancaster, Ross F. Metzger, Lisa C. Ninomiya, Michael J. Ocasio, Anil Paneru, James J. Raley III, Michael D. Randall, Karl V. Rohrer, Andrew G. Schmidt, Christopher M. Siwy, and Eric M. Weiss.

Personal income: Kurt Kunze, Toui C. Pomsouvan. Employee compensation: Janet H. Kmitch, Jennifer R. Mykijewycz, James E. Rankin, Martin L. Simmons, Elijah Slack. Business income: Howard I. Krakower, M. Greg Key, Charles S. Robinson, Jerry L. Stone, Garth K. Trinkl. Property income: Nicole M. Mayerhauser. Farm output and income: Gregory J. Shotwell. Interest income: Alyssa E. Holdren, Shaunda M. Villones. Rental income of persons and housing output: Denise A. McBride. Insurance: Clark F. Schier.

Consumption of fixed capital: Private: David B. Wasshausen, Michael T. Cusick, Michael D. Glenn, Julia T.D. Nguyen, Nadia F.P. Sadee. Government: Robert J. Kornfeld, Debasis Chaudhuri, Christopher B. Mbu.

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.

Data Availability

An extensive set of estimates is presented in "National Income and Product Accounts" in this issue. These estimates and annual estimates for 1929 forward and quarterly estimates for 1947 forward are available on BEA's Web site at <www.bea.gov>.

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 the changes in the net stock of produced assets), NIPA table 7.15 (which shows the relationship between net farm income in the NIPAs and net farm income from the USDA), 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 2005 and revised estimates for 2003 and 2004.

The October SURVEY will present the following NIPA tables: Tables 3.15-3.17 (government spending by function), tables 3.18-3.19 (government-sector reconciliation tables), tables 3.20-3.21 (state government and local government current receipts and expenditures), and tables 8.1-8.6 (seasonally unadjusted estimates). It will also present revised real inventories, sales, and inventory-sales ratios for manufacturing and trade for 2003:I-2006:I. In addition, revised estimates of state personal income that incorporate the results of this annual revision of the NIPAs will be presented.

The November SURVEY will 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. In addition, NIPA table 2.9 (personal income by households and by nonprofit institutions serving households) and table 7.20 (nonprofits reconciliation table) will be presented.

Revised and updated estimates of GDP by industry will be available in late 2006.

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

(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 85 (November 2005): 24-28.

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

(5.) Most used vehicles sold by businesses, often through auctions, are ultimately purchased by consumers through motor vehicle dealers.

(6.) "Space rent," or the imputed rental value of owner-occupied housing, reflects the amount of money owner-occupants would have spent for shelter if they were renting that shelter.

(7.) 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 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.

(8.) 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, 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.

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

(10.) See Christopher L. Bach, "Annual Revision of the U.S. International Accounts, 1995-2005," SURVEY 86 (July 2006): 36-48.

(11.) Annual controls for total current-dollar defense spending are based on data from the Monthly Treasury Statement (MTS) and other sources. For more information about the use of the MTS in the derivation of the Federal estimates, see Pamela A. Kelly, "The Monthly Treasury Statement and BEA's Estimates of Federal Government Spending" SURVEY 86 (February 2006): 6, and Benjamin A. Mandel and Mary L. Roy, "Federal Budget Estimates for Fiscal Year 2007" SURVEY 86 (March 2006): 12-22.

(12.) Government consumption expenditures, which is a measure of the value of services produced by general governments, is gross output less own-account investment and sales to other sectors. Gross output is measured by the cost of inputs, including compensation of employees, consumption of fixed capital, and intermediate goods and services purchased.

(13.) Net interest is calculated as the sum of monetary and imputed interest paid by domestic business, by owner-occupied housing, by nonprofit institutions serving households, and by the rest of the world, less monetary and imputed interest received by domestic business, by owner occupied-housing, and by the rest of the world.

(14.) For 2005, the revision cannot be attributed to the same level of component detail as that for 2004, because for 2005, the previously published estimates were prepared at a less detailed level.

(15.) 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.

(16.) These changes update the methodological information in the two tables that were published in "Updated Summary NIPA Methodologies" in the November 2005 SURVEY; these tables will be updated in the November 2006 SURVEY.

(17.) The components of PCE for services that now incorporate data from the quarterly services survey account for about 10 percent of total PCE.

(18.) Monthly indicators will continue to be used to derive the monthly estimates before the survey data are available and to interpolate the monthly estimates when the survey data are available.

(19.) The IPI is converted to current dollars using a BEA price index.

(20.) More information on these new indexes is available on the BLS Web site at <www.bls.gov/ppi/ppinrbc.htm>.

(21.) More information on the service annual survey is available on the Census Bureau's Web site at <help.econ.census.gov/BHS/SAS/About.html>. More information on NAPCS is available at <www.census.gov/eos/www/ napcs/napcs.htm>.
Table 1. Real GDP and Its Major Components:
Change From 20021V to 2006:1

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

                                    2002:IV

    Gross domestic product          10,095.8
Personal consumption expenditures    7,148.2
  Durable goods                        970.4
  Nondurable goods                   2,053.1
  Services                           4,127.4
Gross private domestic investment    1,567.0
  Fixed investment                   1,537.8
    Nonresidential                   1,054.5
      Structures                       242.5
      Equipment and software           815.4
    Residential                        479.3
  Change in private inventories         29.5
Net exports of goods and services      -13.0
  Exports                            1,017.2
    Goods                              702.1
    Services                           314.7
  Imports                            1,530.2
    Goods                            1,287.9
    Services                           242.4

Government consumption
    expenditures and
    gross investment                 1,885.8
  Federal                              662.3
    National defense                   428.9
    Nondefense                         233.4
  State and local                    1,223.6

Addenda:
  Final sales of domestic product   10,067.3
  Gross domestic purchases          10,604.1
  Gross national product            10,143.8
  Gross domestic income             10,084.5

                                            Previously published

                                          Change for 2002:IV-2006:1

                                     2006:I                  Percent
                                                Dollars   (annual rate)

    Gross domestic product          11,403.6    1,307.8         3.8

Personal consumption expenditures    8,023.6      875.4         3.6
  Durable goods                      1,170.6      200.2         5.9
  Nondurable goods                   2,367.8      314.7         4.5
  Services                           4,504.2      376.8         2.7

Gross private domestic investment    2,022.3      455.3         8.2
  Fixed investment                   1,987.2      449.4         8.2
    Nonresidential                   1,364.2      309.7         8.2
      Structures                       263.7       21.2         2.6
      Equipment and software         1,118.5      303.1        10.2
    Residential                        619.2      139.9         8.2
  Change in private inventories         29.5        0.0         ...

Net exports of goods and services      -60.9     -147.9         ...
  Exports                            1,260.2      243.0         6.8
    Goods                              901.8      199.7         8.0
    Services                           359.0       44.3         4.1
  Imports                            1,921.1      390.9         7.3
    Goods                            1,638.5      350.6         7.7
    Services                           284.4       42.0         5.0

Government consumption
    expenditures and
    gross investment                 2,017.5      131.7         2.1
  Federal                              763.4      101.1         4.5
    National defense                   503.3       74.4         5.0
    Nondefense                         259.9       26.5         3.4
  State and local                    1,254.2       30.6         0.8

Addenda:
  Final sales of domestic product   11,369.7    1,302.4         3.8
  Gross domestic purchases          12,056.6    1,452.5         4.0
  Gross national product            11,433.6    1,289.8         3.8
  Gross domestic income             11,383.5    1,299.0         3.8

                                                  Revised

                                         Change for 2002:IV-2006:1

                                     2006:I                  Percent
                                                Dollars   (annual rate)

    Gross domestic product          11,316.4    1,220.6         3.6

Personal consumption expenditures    8,003.8      855.6         3.5
  Durable goods                      1,190.5      220.1         6.5
  Nondurable goods                   2,342.8      289.7         4.1
  Services                           4,494.5      367.1         2.7

Gross private domestic investment    1,963.6      396.6         7.2
  Fixed investment                   1,914.6      376.8         7.0
    Nonresidential                   1,288.8      234.3         6.4
      Structures                       259.6       17.1         2.1
      Equipment and software         1,044.8      229.4         7.9
    Residential                        618.5      139.2         8.2
  Change in private inventories         41.2       11.7         ...

Net exports of goods and services     -636.6     -123.6         ...
  Exports                            1,269.3      252.1         7.1
    Goods                              906.2      204.1         8.2
    Services                           363.6       48.9         4.5
  Imports                            1,905.9      375.7         7.0
    Goods                            1,631.9      344.0         7.6
    Services                           276.6       34.2         4.1

Government consumption
    expenditures and
    gross investment                 1,987.1      101.3         1.6
  Federal                              745.1       82.8         3.7
    National defense                   491.8       62.9         4.3
    Nondefense                         253.1       19.7         2.5
  State and local                    1,242.0       18.4         0.5

Addenda:
  Final sales of domestic product   11,269.0    1,201.7         3.5
  Gross domestic purchases          11,946.3    1,342.2         3.7
  Gross national product            11,342.7    1,198.9         3.5
  Gross domestic income             11,296.3    1,211.8         3.6

                                       Revision in change

                                     Dollars     Percentage
                                                   points

    Gross domestic product             -87.2       -0.2

Personal consumption expenditures      -19.8       -0.1
  Durable goods                         19.9        0.6
  Nondurable goods                     -25.0       -0.4
  Services                              -9.7        0.0

Gross private domestic investment       -8.7       -1.0
  Fixed investment                     -72.6       -1.2
    Nonresidential                     -75.4       -1.8
      Structures                        -4.1       -0.5
      Equipment and software           -73.7       -2.3
    Residential                         -0.7        0.0
  Change in private inventories         11.7        ...

Net exports of goods and services       24.3        ...
  Exports                                9.1        0.3
    Goods                                4.4        0.2
    Services                             4.6        0.4
  Imports                              -15.2       -0.3
    Goods                               -6.6       -0.1
    Services                            -7.6       -0.9

Government consumption
    expenditures and
    gross investment                   -30.4       -0.5
  Federal                              -18.3       -0.8
    National defense                   -11.5       -0.7
    Nondefense                          -6.8       -0.9
  State and local                      -12.2       -0.3

Addenda:
  Final sales of domestic product     -100.7       -0.3
  Gross domestic purchases            -110.3       -0.3
  Gross national product               -90.9       -0.3
  Gross domestic income                 -7.2       -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 2002:IV to 2006:I

                                    Percent change for
                                      2002:IV-2006:I        Revision
                                      (annual rate)         in change
                                                           (percentage
                                   Previously    Revised     points)
                                   published

Gross domestic product                 2.7          2.9         0.2
  Less: Exports of goods and
    services                           3.2          3.2         0.0
  Plus: Imports of goods and
    services                           4.8          4.9         0.1

Equals: Gross domestic purchases       3.0          3.1         0.1

  Personal consumption
      expenditures                     2.6          2.6         0.0
    Durable goods                     -1.8         -1.8         0.0
    Nondurable goods                   3.1          3.1         0.0
    Services                           3.2          3.3         0.1

  Gross private domestic
      investment                       3.0          3.1         0.1
    Fixed investment                   3.0          3.2         0.2
      Nonresidential                   1.7          1.8         0.1
        Structures                     8.2          8.4         0.2
        Equipment and software        -0.4         -0.5        -0.1
      Residential                      5.6          5.8         0.2
    Change in private
      inventories                      ...          ...         ...

Government consumption
    expenditures and
    gross investment                   4.4          4.9         0.5
  Federal                              4.0          4.7         0.7
    National defense                   3.8          4.7         0.9
    Nondefense                         4.3          4.6         0.3
  State and local                      4.6          5.1         0.5

Addenda:
  Final sales of domestic
    product                            2.7          2.9         0.2
  Gross national product               2.7          2.9         0.2

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

                                       2002

Percent change at annual rate:
    Gross domestic product              1.6

Percentage points at annual
    rates:

  Personal consumption
      expenditures                     1.90
    Durable goods                      0.61
    Nondurable goods                   0.50
    Services                           0.79

  Gross private domestic
      investment                      -0.41
    Fixed investment                  -0.84
    Nonresidential                    -1.06
      Structures                      -0.55
      Equipment and software          -0.51
    Residential                        0.22
  Change in private inventories        0.43

  Net exports of goods and
      services                        -0.69
    Exports                           -0.23
      Goods                           -0.28
      Services                         0.06
    Imports                           -0.46
      Goods                           -0.41
      Services                        -0.05

  Government consumption
      expenditures and
      gross investment                 0.80
    Federal                            0.43
      National defense                 0.29
      Nondefense                       0.14
    State and local                    0.37

                                                   2003

                                   Previously
                                   published     Revised      Revision

Percent change at annual rate:
    Gross domestic product              2.7          2.5          -0.2

Percentage points at annual
    rates:

  Personal consumption
      expenditures                     2.05         1.94         -0.11
    Durable goods                      0.57         0.50         -0.07
    Nondurable goods                   0.63         0.64          0.01
    Services                           0.85         0.80         -0.05

  Gross private domestic
      investment                       0.58         0.54         -0.04
    Fixed investment                   0.54         0.51         -0.03
    Nonresidential                     0.13         0.10         -0.03
      Structures                      -0.11        -0.11          0.00
      Equipment and software           0.24         0.21         -0.03
    Residential                        0.41         0.41          0.00
  Change in private inventories        0.05         0.04         -0.01

  Net exports of goods and
      services                        -0.46        -0.44          0.02
    Exports                            0.17         0.12         -0.05
      Goods                            0.12         0.12          0.00
      Services                         0.05         0.00         -0.05
    Imports                           -0.63        -0.56          0.07
      Goods                           -0.56        -0.56          0.00
      Services                        -0.07         0.00          0.07

  Government consumption
      expenditures and
      gross investment                 0.53         0.47         -0.06
    Federal                            0.45         0.44         -0.01
      National defense                 0.37         0.37          0.00
      Nondefense                       0.08         0.08          0.00
    State and local                    0.08         0.02         -0.06

                                                   2004

                                   Previously
                                   publishers    Revised      Revision

Percent change at annual rate:
    Gross domestic product              4.2          3.9          -0.3

Percentage points at annual
    rates:

  Personal consumption
      expenditures                     2.71         2.71          0.00
    Durable goods                      0.51         0.54          0.03
    Nondurable goods                   0.94         0.73         -0.21
    Services                           1.27         1.45          0.18

  Gross private domestic
      investment                       1.82         1.49         -0.33
    Fixed investment                   1.47         1.11         -0.36
    Nonresidential                     0.92         0.58         -0.34
      Structures                       0.06         0.06          0.00
      Equipment and software           0.86         0.52         -0.34
    Residential                        0.55         0.53         -0.02
  Change in private inventories        0.35         0.38          0.03

  Net exports of goods and
      services                        -0.73        -0.65          0.08
    Exports                            0.80         0.88          0.08
      Goods                            0.59         0.60          0.01
      Services                         0.22         0.28          0.06
    Imports                           -1.53        -1.53          0.00
      Goods                           -1.30        -1.29          0.01
      Services                        -0.23        -0.24          0.00

  Government consumption
      expenditures and
      gross investment                 0.41         0.36         -0.05
    Federal                            0.36         0.30         -0.06
      National defense                 0.32         0.27         -0.05
      Nondefense                       0.04         0.03         -0.01
    State and local                    0.05         0.06          0.01

                                                   2005

                                   Previously
                                   published     Revised      Revision

Percent change at annual rate:
    Gross domestic product              3.5         32.0          -0.3

Percentage points at annual
    rates:

  Personal consumption
      expenditures                     2.48         2.44         -0.04
    Durable goods                      0.37         0.45          0.08
    Nondurable goods                   0.90         0.90          0.00
    Services                           1.21         1.09         -0.12

  Gross private domestic
      investment                       1.00         0.87         -0.13
    Fixed investment                   1.29         1.17         -0.12
    Nonresidential                     0.88         0.67         -0.21
      Structures                       0.05         0.03         -0.02
      Equipment and software           0.82         0.64         -0.18
    Residential                        0.41         0.50          0.09
  Change in private inventories       -0.29        -0.30         -0.01

  Net exports of goods and
      services                        -0.29        -0.26          0.03
    Exports                            0.70         0.68         -0.02
      Goods                            0.51         0.52          0.01
      Services                         0.18         0.16         -0.02
    Imports                           -0.98        -0.94          0.04
      Goods                           -0.89        -0.87          0.02
      Services                        -0.09        -0.07          0.02

  Government consumption
      expenditures and
      gross investment                 0.34         0.17         -0.17
    Federal                            0.16         0.11         -0.05
      National defense                 0.12         0.08         -0.04
      Nondefense                       0.04         0.03         -0.01
    State and local                    0.17         0.06         -0.11

Table 4. Revisions to Percent Change in Real GDP

[Percent change from preceding year]

                                            2002

    Gross domestic product                   1.6

Personal consumption expenditures            2.7
  Durable goods                              7.1
  Nondurable goods                           2.5
  Services                                   1.9

Gross private domestic
    fixed investment                        -5.2
  Nonresidential                            -9.2
    Structures                             -17.1
    Equipment and software                  -6.2
  Residential                                4.8

Change in private inventories                ...

Net exports of goods and services            ...
  Exports                                   -2.3
    Goods                                   -4.0
    Services                                 1.9
  Imports                                    3.4
    Goods                                    3.7
    Services                                 2.1

Government consumption expenditures
    and gross investment                     4.4
  Federal                                    7.0
    National defense                         7.4
    Nondefense                               6.3
  State and local                            3.1

                                                    2003

                                      Previously
                                      published    Revised   Revision

    Gross domestic product                 2.7       2.5       -0.2

Personal consumption expenditures          2.9       2.8       -0.1
  Durable goods                            6.6       5.8       -0.8
  Nondurable goods                         3.2       3.2        0.0
  Services                                 2.0       1.9       -0.1

Gross private domestic
    fixed investment                       3.6       3.4       -0.2
  Nonresidential                           1.3       1.0       -0.3
    Structures                            -4.2      -4.1        0.1
    Equipment and software                 3.2       2.8       -0.4
  Residential                              8.4       8.4        0.0

Change in private inventories              ...       ...        ...

Net exports of goods and services          ...       ...        ...
  Exports                                  1.8       0.0        0.0
    Goods                                  1.8       1.8        0.0
    Services                               1.7       0.0       -1.7
  Imports                                  4.6       4.1       -0.5
    Goods                                  4.9       4.9        0.0
    Services                               3.0       0.0       -3.0

Government consumption expenditures
    and gross investment                   2.8       2.5       -0.3
  Federal                                  6.9       6.8       -0.1
    National defense                       8.8       8.7       -0.1
    Nondefense                             3.4       3.4        0.0
  State and local                          0.6       0.2       -0.4

                                                    2004

                                      Previously
                                      published    Revised   Revision

    Gross domestic product                 4.2       3.9       -0.3

Personal consumption expenditures          3.9       3.9        0.0
  Durable goods                            6.0       6.4        0.4
  Nondurable goods                         4.7       3.6       -1.1
  Services                                 3.0       3.5        0.5

Gross private domestic
    fixed investment                       9.7       7.3       -2.4
  Nonresidential                           9.4       5.9       -3.5
    Structures                             2.2       2.2        0.0
    Equipment and software                11.9       7.3       -4.6
  Residential                             10.3       9.9       -0.4

Change in private inventories              ...       ...        ...

Net exports of goods and services          ...       ...        ...
  Exports                                  0.0       0.0        0.0
    Goods                                  8.9       9.0        0.1
    Services                               7.4       9.7        2.3
  Imports                                 10.7      10.8        0.1
    Goods                                 11.0      10.9       -0.1
    Services                               9.6      10.0        0.4

Government consumption expenditures
    and gross investment                   2.2       1.9       -0.3
  Federal                                  5.2       4.3       -0.9
    National defense                       7.0       5.9       -1.1
    Nondefense                             1.8       1.2       -0.6
  State and local                          0.4       0.5        0.1

                                                    2005

                                      Previously
                                      published    Revised   Revision

    Gross domestic product                 3.5       3.2       -0.3

Personal consumption expenditures          3.5       3.5        0.0
  Durable goods                            4.5       5.5        1.0
  Nondurable goods                         4.4       4.5        0.1
  Services                                 2.9       2.6       -0.3

Gross private domestic
    fixed investment                       8.1       7.5       -0.6
  Nonresidential                           8.6       6.8       -1.8
    Structures                             2.0       1.1       -0.9
    Equipment and software                10.9       8.9       -2.0
  Residential                              7.1       8.6        1.5

Change in private inventories              ...       ...        ...

Net exports of goods and services          ...       ...        ...
  Exports                                  6.9       6.8       -0.1
    Goods                                  7.3       7.5        0.2
    Services                               6.0       5.1       -0.9
  Imports                                  6.3       6.1       -0.2
    Goods                                  6.9       6.7       -0.2
    Services                               3.6       2.8       -0.8

Government consumption expenditures
    and gross investment                   1.8       0.9       -0.9
  Federal                                  2.3       1.5       -0.8
    National defense                       2.6       1.7       -0.9
    Nondefense                             1.8       1.1       -0.7
  State and local                          1.5       0.5       -1.0

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

            Previously
            published    Raised   Revision

2002: IV         2.4      ...       ...

2003: I          4.8      4.4       -0.4
      II         4.8      4.8        0.0
      III        9.3      9.7        0.4
      IV         5.5      4.9       -0.6

2004: I          8.1      7.8       -0.3
      II         7.5      7.9        0.4
      III        5.3      5.3        0.0
      IV         6.1      5.9       -0.2

2005: I          7.0      7.0        0.0
      II         6.0      5.8       -0.2
      III        7.6      7.6        0.0
      IV         5.2      5.1       -0.1

2006: I          8.9      9.0        0.1

                         Real GDP

            Previously
            published    Raised   Revision

2002: IV         0.2      ...       ...

2003: I          1.7      1.2       -0.5
      II         3.7      3.5       -0.2
      III        7.2      7.5        0.3
      IV         3.6      2.7       -0.9

2004: I          4.3      3.9       -0.4
      II         3.5      4.0        0.5
      III        4.0      3.1       -0.9
      IV         3.3      2.6       -0.7

2005: I          3.8      3.4       -0.4
      II         3.3      3.3        0.0
      III        4.1      4.2        0.1
      IV         1.7      1.8        0.1

2006: I          5.6      5.6        0.0

                      GDP price index

            Previously
            published    Raised   Revision

2002: IV         2.2      ...       ...

2003: I          3.1      3.1        0.0
      II         1.1      1.3        0.2
      III        1.8      2.1        0.3
      IV         1.9      2.2        0.3

2004: I          3.6      3.7        0.1
      II         3.9      3.7       -0.2
      III        1.5      2.1        0.6
      IV         2.7      3.2        0.5

2005: I          3.1      3.5        0.4
      II         2.6      2.4       -0.2
      III        3.3      3.3        0.0
      IV         3.5      3.3       -0.2

2006: I          3.1      3.3        0.2

                 Gross domestic purchases
                       price index

            Previously
            published    Raised   Revision

2002: IV         2.2      ...       ...

2003: I          4.1      4.1        0.0
      II         0.4      0.6        0.2
      III        2.0      2.2        0.2
      IV         1.7      1.9        0.2

2004: I          4.2      4.3        0.1
      II         4.1      4.1        0.0
      III        2.0      2.6        0.6
      IV         3.2      3.6        0.4

2005: I          2.9      3.2        0.3
      II         3.3      3.3        0.0
      III        4.2      4.4        0.2
      IV         3.7      3.5       -0.2

2006: I          2.6      2.7        0.1

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

                                        Billions of dollars

Line          NIPA component             Revision in level      Revised
                                                                 2005
                                        2003    2004    2005     level

  1    Gross domestic product          -10.4   -21.8    -1.3   12,455.8

  2    Personal consumption
         expenditures                   -0.3    -2.8    -3.3    8,742.4

  3     Goods                           -6.3   -24.7   -18.4    3,572.4

  4      Motor vehicles and parts       -7.4    -3.9     1.4      448.2

          Of which:

  5        Other motor vehicles         -6.9    -5.9    -3.7      227.3

            Of which:

  6          New trucks                 -6.4    -0.8   -11.1      152.7

  7          Net purchases of
               used trucks              -0.4     1.5     8.2       58.4

  8      Goods other than motor
           vehicles and parts            1.1   -20.8   -19.8    3,124.2

          Of which:

  9        Food                         -2.5   -19.9   -17.2    1,201.4

 10        Gasoline, fuel oil, and
             other energy goods         -0.1    -1.1    -8.5      302.1

            Of which:

 11          Gasoline and oil            0.1     0.0    -7.1      280.2

 12     Services                         0.0    21.9    15.1    5,170.0

         Of which:

 13       Housing                        3.8    15.0    22.6    1,304.1

           Of which:

 14         Owner-occupied nonfarm
              dwellings--space
              rent                       3.5    13.1    15.1      963.3

 15         Tenant-occupied nonfarm
              dwellings--rent            0.0     0.7     6.0      257.0

 16       Medical care                   1.1    -5.4   -16.6    1,493.4

           Of which:

 17         Hospitals and nursing
              homes                     -1.8   -11.6   -18.8      691.3

             Of which:

 16           Nonprofit hospitals        3.1     0.1     0.2      383.7

 19           Government hospitals      -4.9   -10.3   -16.8      125.2

 20         Medical care and
              hospitalization
              insurance                  5.4    10.6     9.9      142.2

 21      Recreation                     -0.3     2.8     5.4      360.6

          Of which:

 22        Other (2)                    -0.2     2.8     4.8      322.3

 23      Other                          -5.8     4.8     3.1    1,208.4

          Of which:

 24        Personal care                 0.0     2.2     0.1      114.6

 25        Personal business            -8.8     0.2    -4.8      647.9

            Of which:

 26          Brokerage charges
               and investment
               counseling                0.0     0.9    -2.3       90.5

 27          Bank service charges,
               trust services, and
               safe deposit box
               rental                   -1.1    -1.3     4.8       99.9

 28          Services furnished
               without payment
               by financial
               intermediaries
               except life
               insurance carriers       -1.1     0.2    -0.3      203.7

 29          Expense of handling
               life insurance and
               pension plans            -6.7     0.3     3.3      106.9

 30          Legal services              0.0     1.0    -2.9       85.6

 31        Education and research        2.7     2.3     2.1      226.5

 32        Net foreign travel            0.0     0.0     6.2       -5.0

 33    Gross private domestic
         investment                     -0.3   -40.1   -47.6    2,057.4

 34     Fixed investment                -5.1   -42.0   -49.9    2,036.2

 35      Nonresidential                 -5.0   -43.5    -4.1    1,265.7

 36       Structures                     0.3     2.4     3.5      338.6

           Of which:

 37         Commercial and health
              care                      -0.2     0.4     2.3      132.5

 38         Power and communication      0.6     1.7     2.7       41.2

 39         Mining exploration,
              shafts, and wells          0.2    -1.3    -5.3       76.4

 40         Other structures            -0.3     1.6     2.4       64.3

 41       Equipment and software        -5.4   -45.9    -7.6      927.1

           Of which:

 42         Information processing
              equipment and
              software                   1.0   -15.4   -34.6      454.3

             Of which:

 43           Computers and
                peripheral
                equipment                0.2    -9.3   -20.6       85.1

 44           Software                   1.4     5.8    -3.8      194.0

 45           Communication
                equipment                0.0    -7.1    -5.1       93.0

 46         Industrial equipment         3.6    -6.9    -6.2      155.1

 47         Transportation
              equipment                 -9.6   -10.3   -13.2      158.3

             Of which:

 48           Light trucks
                (including utility
                vehicles)               -2.6    -3.7    -9.5       62.8

 49           Aircraft                  -5.4    -4.3    -3.9       15.8

 50         Other equipment             -0.1   -12.7   -13.1      165.4

             Of which:

 51           Agricultural
                machinery                0.3    -3.1    -3.9       21.0

 52           Construction
                machinery                0.0    -3.6    -4.4       29.7

 53           Other                     -0.5    -4.9    -4.6       43.1

 54      Residential                    -0.1     1.5    14.1      770.4

          Of which:

 55        Structures                   -0.2     1.4    14.0      761.3

            Of which:

 56          Single-family
               structures                0.0     0.0    13.0      433.5

 57     Change in private inventories   -1.1     1.9     2.4       21.3

 58      Farm                            0.2     5.2     8.7        0.3

 59      Nonfarm                        -1.3    -3.2    -6.2       21.0

 60       Change in book value:         -0.9     1.9    -2.3       72.3

           Of which:

 61         Manufacturing               -1.9    -4.0    -4.5       16.6

 62         Wholesale trade             -0.5    -4.3     2.2       27.2

 63         Retail trade                -0.4     7.0     3.5       11.8

 64         Other                        1.8     4.1    -3.0        2.2

 65       Inventory valuation
            adjustment (IVA)            -0.5    -5.0    -3.9      -51.3

 66    Net exports of goods
         and services                    1.5    10.8     9.8     -716.7

 67     Exports                         -4.8     4.3            1,303.1

 68      Goods                           0.1     0.7     1.9      907.5

 69      Services                       -4.9     3.6     0.0      395.6

 70     Imports                         -6.3    -6.4    -7.8    2,019.9

 71      Goods                           0.0    -0.7    -1.7    1,699.0

 72      Services                       -6.4    -5.7    -6.1      320.9

 73    Government consumption
         expenditures and
         gross investment                0.6    10.3     9.9    2,372.8

 74     Federal                          1.6    -1.7     0.6      878.3

         Of which:

 75       Defense                        0.5    -1.5     2.2      589.3

           Of which:

 76         Consumption
              expenditures               0.2    -0.5     1.0      516.9

             Of which:

 77           Compensation of
                general government
                employees                0.3     2.0     9.3      215.4

 78           Services                  -0.9    -4.3    -9.1      188.5

 79     State and local                 -1.1    12.0     9.2        1.5

         Of which:

 80       Consumption expenditures      -1.0    12.6    14.2    1,207.2

           Of which:

 81         Services                    -7.4    -7.6   -15.0      333.6

 82         Less: Sales of health
              and hospital charges      -6.7   -15.1   -22.3      146.1

 83    Gross domestic product          -10.4   -21.8    -1.3   12,455.8

 84    Less: Statistical
         discrepancy (3)                 1.7   -10.1    16.0       71.0

 85    Equals: Gross domestic income   -12.2   -11.7   -47.4   12,384.8

        Of which:

 86      Compensation of employees,
           paid                          4.4   -37.1    -2.3    7,036.6

 87       Wage and salary accruals      16.7   -12.0   -46.9    5,671.1

 88        Disbursements                 1.7     3.0   -46.9    5,671.1

 89         To persons                   1.7     2.8   -47.3    5,661.9

 90         To the rest of the
             world                       0.0     0.1     0.4        9.2

 91        Wage accruals less
             disbursements              15.0   -15.0     0.0        0.0

 92       Supplements to wages
            and salaries               -12.3   -24.9   -35.3    1,365.5

 93      Taxes on production
           and imports                   5.8    11.2    19.3      922.4

 94      Net operating surplus         -26.3    14.5   -13.1    2,878.2

 95      Consumption of fixed capital    5.2     0.9    30.7    1,604.8

          Of which:

 96        Private                       5.5    -0.8    25.6    1,352.6

 97         Domestic business            5.1    -3.8    17.3    1,059.1

 98          Capital consumption
               allowances               -4.0   -72.7  -102.3      953.1

 99          Less: Capital
               consumption
                adjustment (CCAdj)      -9.2    -8.9  -119.7     -106.1

100        Households and
             institutions                0.4     3.1     8.3      293.5

101    Plus: Income receipts from
         the rest of the world          -6.9    -5.2     5.7      513.3

102    Less: Income payments to the
         rest of the world               4.4     2.2     7.5      481.5

103    Equals: Gross national income   -23.5   -19.2   -49.2   12,416.6

104    Less: Consumption of fixed
         capital                         5.2     0.9    30.7    1,604.8

105    Equals: National income         -28.6   -20.0   -79.9   10,811.8

106    Compensation of employees         4.3   -37.3   -82.8    7,030.3

107     Wage and salary accruals        16.6   -12.3   -47.5    5,664.8

108      Government                      1.1     2.3     6.1      977.7

109      Other                          15.5   -14.7   -53.6    4,687.1

110     Supplements to wages and
           salaries                    -12.3   -24.9   -35.3    1,365.5

111      Employer contributions
           for employee pension
           and insurance funds         -14.4   -29.4  -111.8      933.2

112      Employer contributions
           for government social
           insurance                     2.1     4.4     6.5      432.3

113    Proprietors' income with
         IVA and CCAdj                   1.1    21.5    32.0      970.7

114     Farm                             1.5     0.4     9.4       30.2

         Of which:

115       Proprietors' income
            with IVA                     1.5     0.3    10.1       36.8

116     Nonfarm                         -0.3    21.1    22.6      940.4

         Of which:

117       Proprietors' income           -0.5    26.4    41.0      866.2

118       CCAdj                          0.2    -4.8   -17.5       79.3

119    Rental income of persons
         with CCAdj                      1.3    -7.2    -0.1       72.8

        Of which:

120      Rental income of persons        1.4    -0.8     0.9       96.2

121    Corporate profits with
         IVA and CCAdj                  -8.7    21.1   -21.2    1,330.7

122     Profits before tax             -29.1    85.0    80.4    1,518.7

123      Domestic industries           -18.5    93.6    89.0    1,321.7

124       Financial                      4.2    43.5    42.1      389.0

125       Mining                        -1.3    -7.4   -16.9       39.5

126       Construction                  -8.8    -1.2    -3.8       82.6

127       Manufacturing                 -4.9    31.5    47.4      270.7

128       Wholesale trade               -1.0     6.2     4.4      104.0

129       Transportation and
            warehousing                 -0.9     3.4    -7.2       21.5

130       Information                    5.3    20.7    26.4       77.5

131       Other nonfinancial           -11.3    -3.4    -3.6      336.8

132      Rest of the world             -10.5    -0.6    -8.6      197.0

133     IVA                             -0.3    -0.2    -1.1      -32.6

134     CCAdj                           -9.2   -63.7  -100.6     -155.5

135    Net interest and
         miscellaneous payments         -3.8   -20.4   -14.9      483.4

        Of which:

136      Net interest (4)               -4.4   -21.4   -15.9      466.8

137       Monetary interest paid       -16.2    29.0    ...     2,806.8

138        Domestic business:          -15.3    26.7    ...     1,590.1

            Of which:

139          Financial
               corporations              4.1    43.3    ...       840.3

140          Nonfinancial
               corporations            -11.3   -26.4    ...       469.9

141          Sole proprietorships
               and partnerships          0.2     9.6    ...       210.8

142      Less: Monetary interest
           received                    -16.2    29.0    ...     2,806.8

          Of which:

143        Domestic business           -10.4    56.1    ...     1,857.0

            Of which:

144          Financial corporations    -10.6    48.4    ...     1,530.0

145          Financial sole
               proprietorships
               and partnerships          0.0    10.9    ...        80.0

146        Persons                      -2.4   -20.4    ...       555.7

147      Plus: Imputed interest paid    -1.8    12.1    ...       317.8

          Of which:

148        Depositor and insurance
             services (paid by
             domestic financial
             corporate business)        -0.9    10.3    ...       456.0

            Of which:

149          Banks, credit
               agencies, and
               investment
               companies                -0.8     5.2    ...       232.2

150          Life insurance
               carriers                 -0.3     4.0    ...       193.5

151      Less: Imputed interest
           received                     -1.8    12.1    ...       317.8

152       Depositor and insurance
            services                    -1.5    10.2    ...       461.7

           Of which:

153         Persons                     -1.1     5.1    ...       388.1

154    Taxes on production and imports   5.8    11.2    19.3      922.4

        Of which:

155      State and local                 5.8    10.6    15.3      821.2

156    Less: Subsidies                   1.2     1.2     2.1       57.3

157    Business current transfer
         payments (net)                  2.2    -5.6    -6.0       74.2

        Of which:

158      To persons (net)                3.8    -4.9     4.1       45.7

159      To the rest of the
           world (net)                  -0.6     0.9    -0.4       -1.6

160    Current surplus of government
         enterprises                     0.4    -2.0    -4.1      -15.4

       Addenda:

161    Gross national product          -21.7   -29.3    -3.1   12,487.7

162    Gross saving                    -15.1   -28.3   -56.0    1,612.0

163    Personal income                  -5.5    18.1     1.5   10,239.2

164     Compensation of employees,
          received                     -10.7   -22.3   -82.8    7,030.3

165     Proprietors' income with
          IVA and CCAdj                  1.1    21.5    32.0      970.7

166     Rental income of persons
          with CCAdj                     1.3    -7.2    -0.1       72.8

167     Personal income receipts
          on assets                     -2.1    31.4    62.0    1,519.4

168      Personal interest income       -3.5   -15.1    -0.7      945.0

169      Personal dividend income        1.5    46.5    62.7      574.4

170     Personal current transfer
          receipts                       7.0    -1.0     1.3    1,526.6

171      Government social benefits      3.2     3.9    -2.8    1,480.9

172      Other current transfer
           receipts, from business
           (net)                         3.8    -4.9     4.1       45.7

173     Less: Contributions for
          government social insurance    2.0     4.2    10.9      880.6

174      Federal                        -0.2    -0.3     5.6      855.3

175      State and local                 2.3     4.5     5.4       25.3

176    Less: Personal current taxes      1.2     0.7    -4.6    1,203.1

        Of which:

177      Federal                         0.2    -0.4    -5.1      927.9

178    Equals: Disposable
         personal income                -0.7    17.4     6.2    9,036.1

179    Less: Personal outlays           -8.6    -5.3    -1.2    9,070.9

        Of which:

180      Personal consumption
           expenditures                 -6.3    -2.8    -3.3    8,742.4

181    Equals: Personal saving           2.1    22.5     7.3      -34.8

Line         NIPA component          Major source data incorporated (1)

  1    Gross domestic product

  2    Personal consumption
         expenditures

  3     Goods

  4      Motor vehicles and parts

          Of which:

  5        Other motor vehicles

            Of which:

  6          New trucks                New trade source data on new
                                       truck transactions prices for
                                       2003-2005; revised source data
                                       on new truck registrations for
                                       2005.

  7          Net purchases of
               used trucks             New trade source data on truck
                                       business registrations by type
                                       and estimated retention periods
                                       for 2002-2004.

  8      Goods other than motor
           vehicles and parts

          Of which:

  9        Food                        New product-line sales data
                                       from the 2002 Economic Census;
                                       revised Census Bureau Annual
                                       Retail Trade Survey (ARTS)
                                       sales data for 2003; new ARTS
                                       data for 2004; revised Census
                                       Bureau monthly sales data for
                                       2005.

 10        Gasoline, fuel oil, and
             other energy goods

            Of which:

 11          Gasoline and oil          Revised EIA petroleum supply
                                       data for 2005.

 12     Services

         Of which:

 13       Housing

           Of which:

 14         Owner-occupied nonfarm
              dwellings--space
              rent                     New Census Bureau Residential
                                       Finance Survey data on mean
                                       contract rent for 2001; new
                                       Census Bureau Current
                                       Population Survey/Housing
                                       Vacancy Survey data on housing
                                       units for 2005.

 15         Tenant-occupied nonfarm
              dwellings--rent          New Census Bureau Current
                                       Population Survey/Housing
                                       Vacancy Survey, data on units
                                       for 2005; new BEA data on
                                       personal consumption
                                       expenditures for utilities
                                       for 2005.

 16       Medical care

           Of which:

 17         Hospitals and nursing
              homes

             Of which:

 16           Nonprofit hospitals

 19           Government hospitals     Revised Census Bureau
                                       Government Finances (GF) data
                                       on state and local government
                                       hospital sales for FY 2003; new
                                       GF tabulations for FY 2004.

 20         Medical care and
              hospitalization
              insurance                New Economic Census data on
                                       benefits as a percentage of
                                       premiums for 2002.

 21      Recreation

          Of which:

 22        Other (2)                   New Census Bureau Service
                                       Annual Survey data for 2005.

 23      Other

          Of which:

 24        Personal care

 25        Personal business

            Of which:

 26          Brokerage charges
               and investment
               counseling

 27          Bank service charges,
               trust services, and
               safe deposit box
               rental

 28          Services furnished
               without payment
               by financial
               intermediaries
               except life
               insurance carriers      Revised FRB Call Report data on
                                       commercial banks for 2003-2005;
                                       revised FRB flow of funds
                                       sector asset data for 2003 and
                                       2004; new FRB data for 2005;
                                       revised IRS tabulations of
                                       corporate tax return data for
                                       2003; new IRS tabulations for
                                       2004; new Federal Deposit
                                       Insurance Corporation data,
                                       Credit Union National
                                       Association data, Office of
                                       Thrift Supervision data, and
                                       trade source data on investment
                                       companies for 2005.

 29          Expense of handling
               life insurance and
               pension plans           Revised IRS tabulations of
                                       corporate tax return data for
                                       2003; new IRS tabulations for
                                       2004; revised Census Bureau
                                       Government Finances (GF) data
                                       on state and local government
                                       employee retirement systems
                                       for FY 2003; new GF data for
                                       FY 2004; new trade source data
                                       for 2005.

 30          Legal services

 31        Education and research

 32        Net foreign travel          Revised BEA international
                                       transactions accounts estimates
                                       for 2003-2005.

 33    Gross private domestic
         investment

 34     Fixed investment

 35      Nonresidential

 36       Structures

           Of which:

 37         Commercial and health
              care

 38         Power and communication

 39         Mining exploration,
              shafts, and wells        New trade source data on
                                       drilling footage.

 40         Other structures

 41       Equipment and software

           Of which:

 42         Information processing
              equipment and
              software

             Of which:

 43           Computers and
                peripheral
                equipment              Revised Census Bureau Annual
                                       Survey of Manufactures (ASM)
                                       shipments data for 2003; new
                                       ASM data for 2004.

 44           Software                 Revised Census Bureau Service
                                       Annual Survey (SAS) detailed
                                       product receipts data for 2003
                                       and 2004; new SAS data for
                                       2005; new BLS employment data
                                       for 2005.

 45           Communication
                equipment              Revised Census Bureau Annual
                                       Survey of Manufactures (ASM)
                                       shipments data for 2003; new
                                       ASM data for 2004.

 46         Industrial equipment       Revised Census Bureau Annual
                                       Survey of Manufactures (ASM)
                                       shipments data for 2003; new
                                       ASM data for 2004.

 47         Transportation
              equipment

             Of which:

 48           Light trucks
                (including utility
                vehicles)              New trade source data on new
                                       truck transactions prices for
                                       2003-2005; revised source data
                                       on new truck registrations for
                                       2005; new trade source data on
                                       truck business registrations by
                                       type and estimated retention
                                       periods for 2002-2004.

 49           Aircraft                 Revised Census Bureau Annual
                                       Survey of Manufactures (ASM)
                                       shipments data for 2003; new
                                       ASM data for 2004.

 50         Other equipment            Revised Census Bureau Annual
                                       Survey of Manufactures (ASM)
                                       shipments data for 2003; new
                                       ASM data for 2004.

             Of which:

 51           Agricultural
                machinery

 52           Construction
                machinery

 53           Other

 54      Residential

          Of which:

 55        Structures

            Of which:

 56          Single-family
               structures              Revised Census Bureau value of
                                       construction put in place data
                                       for 2005.

 57     Change in private inventories

 58      Farm                          Revised USDA data for 2003 and
                                       2004; new USDA data for 2005.

 59      Nonfarm

 60       Change in book value:

           Of which:

 61         Manufacturing

 62         Wholesale trade

 63         Retail trade               Revised Census Bureau Annual
                                       Retail Trade Survey (ARTS)
                                       inventory book value data for
                                       2003; new ARTS data for 2004;
                                       revised BEA estimates based on
                                       motor vehicle inventory data
                                       from trade sources for 2005;
                                       revised Census Bureau monthly
                                       inventory data for 2005.

 64         Other

 65       Inventory valuation
            adjustment (IVA)           Revised Census Bureau Annual
                                       Wholesale Trade Survey (AWTS),
                                       Annual Retail Trade Survey
                                       (ARTS), and Annual Survey of
                                       Manufactures (ASM) information
                                       on accounting methods used for
                                       inventory reporting for 2003;
                                       new AWTS, ARTS, and ASM
                                       information for 2004; revised
                                       BEA unit labor cost indexes for
                                       2003-2005.

 66    Net exports of goods
         and services                  Revised BEA international
                                       transactions accounts estimates
                                       for 2003-2005.

 67     Exports

 68      Goods

 69      Services

 70     Imports

 71      Goods

 72      Services

 73    Government consumption
         expenditures and
         gross investment

 74     Federal

         Of which:

 75       Defense

           Of which:

 76         Consumption
              expenditures             Revised Federal budget data for
                                       FY 2005; preliminary Federal
                                       budget data for FY 2006; new
                                       BLS Quarterly Census of
                                       Employment and Wages for 2005.

             Of which:

 77           Compensation of
                general government
                employees

 78           Services

 79     State and local

         Of which:

 80       Consumption expenditures     Revised Census Bureau
                                       Government Finances (GF)
                                       tabulations for FY 2003; new GF
                                       tabulations for FY 2004, new
                                       Department of Health and Human
                                       Services Medical Expenditure
                                       Panel Survey data for 2003.

           Of which:

 81         Services

 82         Less: Sales of health
              and hospital charges

 83    Gross domestic product

 84    Less: Statistical
         discrepancy (3)

 85    Equals: Gross domestic income

        Of which:

 86      Compensation of employees,
           paid

 87       Wage and salary accruals     See entries under "National
                                       income."

 88        Disbursements

 89         To persons

 90         To the rest of the
             world

 91        Wage accruals less
             disbursements             Improved treatment of
                                       Friday paydays.

 92       Supplements to wages
            and salaries               See entries under
                                       "National income."

 93      Taxes on production
           and imports                 See entries under
                                       "National income."

 94      Net operating surplus         See entries under
                                       "National income."

 95      Consumption of fixed capital

          Of which:

 96        Private

 97         Domestic business          Revised BEA fixed investment
                                       and price estimates for
                                       2003-2005.

 98          Capital consumption
               allowances              Revised IRS tabulations of
                                       corporate tax return data for
                                       2003; new IRS tabulations for
                                       2004; new IRS tabulations of
                                       sole proprietorship and
                                       partnership tax return data
                                       for 2004; revised BEA fixed
                                       investment estimates for
                                       2003-2005.

 99          Less: Capital
               consumption
                adjustment (CCAdj)     CCAdj is calculated as
                                       consumption of fixed capital
                                       less capital consumption
                                       allowances.

100        Households and
             institutions              Revised BEA fixed investment
                                       and price estimates for
                                       2003-2005.
101    Plus: Income receipts from
         the rest of the world         Revised BEA international
                                       transactions accounts estimates
                                       for 2003-2005.
102    Less: Income payments to the
         rest of the world             Revised BEA international
                                       transactions accounts estimates
                                       for 2003-2005.

103    Equals: Gross national income

104    Less: Consumption of fixed
         capital

105    Equals: National income

106    Compensation of employees

107     Wage and salary accruals

108      Government

109      Other                         Improved treatment of Friday
                                       paydays; revised BLS Quarterly
                                       Census of Employment and Wages
                                       for 2003-2005.

110     Supplements to wages and
           salaries

111      Employer contributions
           for employee pension
           and insurance funds         New Pension Benefit Guaranty
                                       Corporation data for 2003 and
                                       2004; new corporate financial
                                       data for 2005; new Department
                                       of Health and Human Services
                                       Medical Expenditure Panel
                                       Survey data for 2004.

112      Employer contributions
           for government social
           insurance                   See entries under "Personal
                                       income."

113    Proprietors' income with
         IVA and CCAdj

114     Farm

         Of which:

115       Proprietors' income
            with IVA                   Revised USDA data for 2003 and
                                       2004; new USDA data for 2005;
                                       revised BEA depreciation
                                       estimates for 2003-2005.

116     Nonfarm

         Of which:

117       Proprietors' income          New IRS tabulations of sole
                                       proprietorship and partnership
                                       tax return data for 2004;
                                       revised BEA depreciation
                                       estimates for 2003-2005.

118       CCAdj                        Capital consumption allowances:
                                       New IRS tabulations of sole
                                       proprietorship and partnership
                                       tax return data for 2004.
                                       Consumption of fixed capital:
                                       Revised BEA fixed investment
                                       and price estimates for 2003-
                                       2005.

119    Rental income of persons
         with CCAdj

        Of which:

120      Rental income of persons      New Census Residential Finance
                                       Survey data on rent-to-value
                                       ratios for 2001; revised FRB
                                       flow of funds accounts
                                       residential mortgage
                                       liabilities data for 2003-
                                       2005; new trade source data on
                                       property insurance for 2004;
                                       revised Census Bureau American
                                       Housing Survey data on units
                                       and average rents for 2003;
                                       new Census Bureau Current
                                       Population Survey/Housing
                                       Vacancy Survey, data on owner-
                                       and tenant-occupied units for
                                       2005; revised IRS tabulations
                                       of individual tax return data
                                       for 2003; new IRS data for
                                       2004; revised Federal National
                                       Mortgage Corporation mortgage
                                       originations data for 2003; new
                                       mortgage originations data for
                                       2004; revised Department of
                                       Housing and Urban Development
                                       (HUD) data on average closing
                                       costs for 2003 and 2004; new
                                       HUD data for 2005; new Census
                                       Bureau data on expenditures for
                                       residential improvements and
                                       repairs for 2005; revised
                                       Census Bureau Government
                                       Finances (GF) for FY 2003 data
                                       on state and local property
                                       taxes; new GF data for FY 2004.

121    Corporate profits with
         IVA and CCAdj                 Revised IRS tabulations of
                                       corporate tax return data for
                                       2003; new IRS tabulations for
                                       2004; regulatory agency and
                                       public financial reports
                                       profits data for 2005.

122     Profits before tax

123      Domestic industries

124       Financial

125       Mining

126       Construction

127       Manufacturing

128       Wholesale trade

129       Transportation and
            warehousing

130       Information

131       Other nonfinancial

132      Rest of the world             Revised BEA international
                                       transactions accounts
                                       estimates for 2003-2005.

133     IVA

134     CCAdj                          Capital consumption allowances:
                                       Revised IRS tabulations of
                                       corporate tax return data for
                                       2003; new IRS tabulations for
                                       2004. Consumption of fixed
                                       capital: Revised BEA fixed
                                       investment and price estimates
                                       for 2003-2005.

135    Net interest and
         miscellaneous payments

        Of which:

136      Net interest (4)

137       Monetary interest paid       Revised IRS tabulations of
                                       corporate tax return data for
                                       2003; new IRS tabulations for
                                       2004; new IRS tabulations of
                                       sole proprietorship and
                                       partnership tax return data for
                                       2004; revised FRB flow of funds
                                       accounts residential mortgage
                                       liabilities data for 2003-2005;
                                       revised FRB flow of funds
                                       accounts nonfinancial corporate
                                       liabilities data for 2005;
                                       revised USDA data on interest
                                       paid by farmers for 2003 and
                                       2004; new USDA data for 2005;
                                       new Federal Deposit Insurance
                                       Corporation data, Credit Union
                                       National Association data,
                                       Office of Thrift Supervision
                                       data, and trade source data on
                                       investment companies for 2005.

138        Domestic business:

            Of which:

139          Financial
               corporations

140          Nonfinancial
               corporations

141          Sole proprietorships
               and partnerships

142      Less: Monetary interest
           received                    Revised IRS tabulations of
                                       corporate tax return data for
                                       2003; new IRS tabulations for
                                       2004; new IRS tabulations for
                                       sole proprietorship and
                                       partnership tax return data for
                                       2004; revised FRB flow of funds
                                       accounts nonfinancal corporate
                                       liabilities data for 2005; new
                                       Federal Deposit Insurance
                                       Corporation data, Credit Union
                                       National Association data,
                                       Office of Thrift Supervision
                                       data, and trade source data on
                                       investment companies for 2005.

          Of which:

143        Domestic business

            Of which:

144          Financial corporations

145          Financial sole
               proprietorships
               and partnerships

146        Persons

147      Plus: Imputed interest paid

          Of which:

148        Depositor and insurance
             services (paid by
             domestic financial
             corporate business)

            Of which:

149          Banks, credit
               agencies, and
               investment
               companies               Revised FRB Call Report data on
                                       commercial banks for 2003-2005.

150          Life insurance
               carriers

151      Less: Imputed interest
           received

152       Depositor and insurance
            services                   Revised FRB flow of funds
                                       assets data for 2003 and 2004;
                                       new FRB data for 2005.

           Of which:

153         Persons

154    Taxes on production and imports

        Of which:

155      State and local               Revised Census Bureau
                                       Government Finances (GF)
                                       tabulations for FY 2003; new
                                       GF tabulations for FY 2004.

156    Less: Subsidies

157    Business current transfer
         payments (net)

        Of which:

158      To persons (net)

159      To the rest of the
           world (net)                 Revised BEA international
                                       transactions accounts
                                       estimates for 2003-2005.

160    Current surplus of government
         enterprises

       Addenda:

161    Gross national product

162    Gross saving

163    Personal income                 See entries under "National
                                       income" and additional
                                       sources below.

164     Compensation of employees,
          received

165     Proprietors' income with
          IVA and CCAdj

166     Rental income of persons
          with CCAdj

167     Personal income receipts
          on assets

168      Personal interest income      See entries under "Net
                                       interest."

169      Personal dividend income      Revised IRS tabulations of
                                       corporate tax return data for
                                       2003; new IRS tabulations for
                                       2004; regulatory agency and
                                       public financial statements
                                       data on dividends for 2005.

170     Personal current transfer
          receipts

171      Government social benefits

172      Other current transfer
           receipts, from business
           (net)

173     Less: Contributions for
          government social insurance

174      Federal                       Revised Social Security
                                       Administration (SSA) data on
                                       taxable wages for 2003 and
                                       2004; new SSA data for 2005.

175      State and local               Revised Census Bureau
                                       Government Finances (GF)
                                       tabulations for FY 2003; new
                                       GF tabulations for FY 2004.

176    Less: Personal current taxes

        Of which:

177      Federal                       Revised Social Security
                                       Administration (SSA) data on
                                       taxable wages for 2003 and
                                       2004; new SSA data for 2005;
                                       Treasury Department personal
                                       income tax collections data
                                       for 2003-2005.

178    Equals: Disposable
         personal income

179    Less: Personal outlays

        Of which:

180      Personal consumption
           expenditures                See entries under "Personal
                                       consumption expenditures."

181    Equals: Personal saving

(1.) In these descriptions, "new" indicates that 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
that now revised data from that source are being incorporated.

(2.) Includes casino gambling.

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

(4.) 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
EIA Energy Information Administration
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, 2002-2003

[Billions of dollars]

                                                  2002

                                             Discontinuity
                                 Published        (1)        Adjusted

Net exports of goods
    and services                    -424.4             0.1      -424.3
  Exports                          1,005.9            -2.6     1,003.4
    Goods                            697.6             0.0       697.6
    Services                         308.4            -2.6       305.8
  Imports                          1,430.3            -2.7     1,427.6
    Goods                          1,189.3             0.0     1,189.3
    Services                         241.0            -2.7       238.3

Net receipts of Income                30.6             2.2        32.6
  Income receipts                    305.7            -0.1       305.5
    Wage and salary receipts           2.9            -0.1         2.8
    Income receipts on assets        302.7             0.0       302.7
      Interest                        98.3             0.0        98.3
      Dividends                       92.8             0.0        92.8
      Reinvested earnings of
        U.S. direct investment
        abroad                       111.6             0.0       111.6
  Income payments                    275.0            -2.3       272.7
    Wage and salary payments           8.4             0.0         8.4
    Income payments on assets        266.7            -2.3       264.3
      Interest                       218.0            -0.2       217.8
      Dividends                       45.0            -0.2        44.8
      Reinvested earnings
        of foreign direct
        investment in the
        United States                  3.6            -1.9         1.8

Current taxes and transfer
  payments to the rest of the
  world (net)                         64.5            -0.5        64.1

Addenda:
  Gross domestic product          10,469.6             0.1    10,469.7
  Gross national product          10,500.2             2.3    10,502.5

                                   2003         Change from
                                                2002 to 2003

                                 Revised    Published   Adjusted

Net exports of goods
    and services                   -499.4       -75.0      -75.1
  Exports                         1,040.8        34.8       37.4
    Goods                           724.4        26.8       26.8
    Services                        316.4         8.0       10.6
  Imports                         1,540.2       109.9      112.5
    Goods                         1,283.9        94.6       94.6
    Services                        256.2        15.3       17.9

Net receipts of Income               56.6        26.2       24.0
  Income receipts                   336.8        31.1       31.3
    Wage and salary receipts          2.8        -0.1        0.0
    Income receipts on assets       334.0        31.3       31.3
      Interest                       84.9       -13.4      -13.4
      Dividends                     100.9         8.0        8.0
      Reinvested earnings of
        U.S. direct investment
        abroad                      148.2        36.6       36.6
  Income payments                   280.0         4.9        7.2
    Wage and salary payments          8.5         0.1        0.1
    Income payments on assets       271.4         4.8        7.1
      Interest                      187.8       -30.2      -30.0
      Dividends                      68.9        23.9       24.2
      Reinvested earnings
        of foreign direct
        investment in the
        United States                14.7        11.1       12.9

Current taxes and transfer
  payments to the rest of the
  world (net)                        69.7         5.2        5.6

Addenda:
  Gross domestic product         10,960.8       491.2      491.1
  Gross national product         11,017.6       517.4      515.1

(1.) Equals the revisions to the U.S. international transactions
accounts 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]

                                           2002

    Gross domestic product                  1.7

Personal consumption expenditures           1.4
  Durable goods                            -2.4
  Nondurable goods                          0.5
  Services                                  2.7

Gross private domestic fixed
    investment                              0.6
  Nonresidential                           -0.2
    Structures                              4.4
    Equipment and software                 -1.8
  Residential                               2.5

Change in private inventories               ...

Net exports of goods and services           ...
  Exports                                  -0.4
    Goods                                  -0.7
    Services                                0.4
  Imports                                  -1.2
    Goods                                  -1.8
    Services                                1.7

Government consumption expenditures
    and gross investment                    2.9
  Federal                                   3.7
    National defense                        3.7
    Nondefense                              3.5
State and local                             2.5

Addendum:
  Gross domestic purchases                  1.6

                                                    2003

                                      Previously   Revised   Revision
                                      published

    Gross domestic product                  2.0       2.1        0.1

Personal consumption expenditures           1.9       2.0        0.1
  Durable goods                            -3.5      -3.6       -0.1
  Nondurable goods                          2.0       2.0        0.0
  Services                                  3.0       3.2        0.2

Gross private domestic fixed
    investment                              1.7       1.6       -0.1
  Nonresidential                            0.3       0.1       -0.2
    Structures                              3.5       3.5        0.0
    Equipment and software                 -0.9      -1.1       -0.2
  Residential                               4.8       4.8        0.0

Change in private inventories               ...       ...        ...

Net exports of goods and services           ...       ...        ...
  Exports                                   2.1       2.2        0.1
    Goods                                   2.0       2.0        0.0
    Services                                2.5       2.6        0.1
  Imports                                   3.4       3.5        0.1
    Goods                                   2.9       2.9        0.0
    Services                                5.8       6.3        0.5

Government consumption expenditures
    and gross investment                    3.7       4.1        0.4
  Federal                                   3.9       4.2        0.3
    National defense                        4.4       4.7        0.3
    Nondefense                              3.0       3.4        0.4
State and local                             3.7       4.1        0.4

Addendum:
  Gross domestic purchases                  2.2       2.3        0.1

                                                    2004

                                      Previously   Revised   Revision
                                      published

    Gross domestic product                  2.6       2.8        0.2

Personal consumption expenditures           2.6       2.6        0.0
  Durable goods                            -1.9      -1.6        0.3
  Nondurable goods                          3.3       3.3        0.0
  Services                                  3.2       3.2        0.0

Gross private domestic fixed
    investment                              3.2       3.4        0.2
  Nonresidential                            1.3       1.2       -0.1
    Structures                              5.5       6.2        0.7
    Equipment and software                 -0.1      -0.4       -0.3
  Residential                               6.7       7.3        0.6

Change in private inventories               ...       ...        ...

Net exports of goods and services           ...       ...        ...
  Exports                                   3.6       3.7        0.1
    Goods                                   3.7       3.7        0.0
    Services                                3.1       3.5        0.4
  Imports                                   5.0       5.0        0.0
    Goods                                   5.0       5.0        0.0
    Services                                4.9       5.1        0.2

Government consumption expenditures
    and gross investment                    3.7       4.4        0.7
  Federal                                   4.2       4.7        0.5
    National defense                        4.0       4.7        0.7
    Nondefense                              4.6       4.7        0.1
State and local                             3.4       4.3        0.9

Addendum:
  Gross domestic purchases                  2.9       3.1        0.2

                                                    2005

                                      Previously   Revised   Revision
                                      published

    Gross domestic product                  2.8       3.0        0.2

Personal consumption expenditures           2.8       2.9        0.1
  Durable goods                            -0.5      -0.7       -0.2
  Nondurable goods                          3.7       3.6       -0.1
  Services                                  3.1       3.2        0.1

Gross private domestic fixed
    investment                              3.1       3.5        0.4
  Nonresidential                            2.1       2.6        0.5
    Structures                             10.1      11.3        1.2
    Equipment and software                 -0.4      -0.4        0.0
  Residential                               4.8       5.1        0.3

Change in private inventories               ...       ...        ...

Net exports of goods and services           ...       ...        ...
  Exports                                   3.7       3.6       -0.1
    Goods                                   3.1       3.1        0.0
    Services                                5.0       4.8       -0.2
  Imports                                   6.1       6.3        0.2
    Goods                                   6.4       6.5        0.1
    Services                                4.6       5.4        0.8

Government consumption expenditures
    and gross investment                    4.8       5.6        0.8
  Federal                                   3.6       4.8        1.2
    National defense                        3.6       5.1        1.5
    Nondefense                              3.8       4.1        0.3
State and local                             5.4       6.2        0.8

Addendum:
  Gross domestic purchases                  3.2       3.5        0.3
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Author:Seskin, Eugene P.; Smith, Shelly
Publication:Survey of Current Business
Geographic Code:1USA
Date:Aug 1, 2006
Words:25818
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