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GDP and the Economy: Advance Estimates for the Fourth Quarter of 2017.

Real gross domestic product (GDP) increased 2.6 percent an annual rate in the fourth quarter of 2017, according to the advance estimates of the national income and product accounts (NIPAs) (chart 1 and table In the third quarter, real GDP increased 3.2 percent. Real GDP increased 2.3 percent in 2017 (from the 2016 annual level to the 2017 annual level), compared with an increase of 1.5 percent in 2016.

The increase in real GDP in the fourth quarter reflected positive contributions from consumer spending, nonresidential fixed investment, exports, residential fixed investment, state and local government spending, and federal government spending that were partly offset by a negative contribution from inventory investment. (2) Imports, which are a subtraction in the calculation of GDP, increased.

GDP Component Detail

The deceleration in real GDP growth (table 1, line 1) in the fourth quarter reflected a downturn in private inventory investment that was partly offset by accelerations in consumer spending, exports, nonresidential fixed investment, state and local government spending, and federal government spending and by an upturn in residential fixed investment. Imports, which are a subtraction in the calculation of GDP, turned up.

* The acceleration in consumer spending (line 3) primarily reflected an acceleration in spending for consumer goods. The main contributors to the acceleration were an upturn in spending for clothing and footwear and accelerations in spending for recreational goods and vehicles and for food and beverages purchased for off-premises consumption.

* The acceleration in nonresidential fixed investment (line 9) primarily reflected an upturn in structures (mainly due to upturns in investment in commercial and health care structures and a smaller decrease in manufacturing structures).

* The upturn in residential fixed investment (line 13) primarily reflected an upturn in "other" structures (mainly due to upturns in brokers' commissions and other ownership transfer costs and in improvements).

* The downturn in inventory investment (line 14) primarily reflected downturns in wholesale trade industries and in manufacturing that were partly offset by an upturn in retail trade industries.

* The acceleration in exports (line 16) reflected an acceleration in exports of goods that was partly offset by a downturn in exports of services. The main contributor to the acceleration in exports of goods ( line 17) was an upturn in industrial supplies and materials (mainly petroleum and products).

* The acceleration in federal government spending (line 23) primarily reflected an acceleration in national defense spending. The main contributor to the acceleration was an acceleration in gross investment in equipment.

* The acceleration in state and local government spending (line 26) primarily reflected an upturn in gross investment in structures.

Prices

Prices paid by U.S. residents, as measured by the gross domestic purchases price index, increased 2.5 percent in the fourth quarter after increasing 1.7 percent in the third quarter (table 2, line 1). The acceleration mainly reflected an acceleration in consumer prices.

* Prices paid for consumer goods (line 3) accelerated, primarily reflecting an acceleration in the prices paid for gasoline and other energy goods. Notable offsets include downturns in the prices for clothing and footwear and for "other" nondurable goods (specifically pharmaceuticals) and a larger decrease in prices for recreational goods and vehicles.

* Prices paid for services (line 6) accelerated primarily reflecting accelerations in the prices of financial services, health care, and food services and accommodations.

* Consumer prices for energy (line 24) increased more in the fourth quarter than in the third quarter, and food prices (line 23) turned down slightly. Consumer prices excluding food and energy (line 25), a measure of the "core" rate of inflation, accelerated, increasing 1.9 percent in the fourth quarter after increasing 1.3 percent in the third quarter.

Personal Income

Personal income (table 3, line 1), which is measured in current dollars, accelerated in the fourth quarter, increasing $178.9 billion after increasing $112.3 billion in the third quarter. The acceleration primarily reflected an upturn in personal interest income (line 17) and an acceleration in nonfarm proprietors' income (line 14).

* Disposable personal income (line 30) increased $139.0 billion in the fourth quarter; in the third quarter, it increased $73.8 billion.

* Personal saving-disposable personal income less personal outlays-was $384.4 billion in the fourth quarter, decreasing $93.9 billion after decreasing $47.4 billion in the third quarter.

* The personal saving rate (line 33)-personal saving as a percentage of disposable personal income-was 2.6 percent in the fourth quarter; the last time this rate was below 3.0 percent was in the fourth quarter of 2007 (2.8 percent).

* Real disposable personal income (DPI) increased 1.1 percent in the fourth quarter after increasing 0.5 percent in the third quarter. Current-dollar DPI increased 3.9 percent after increasing 2.1 percent. The differences in the movements in real DPI and current-dollar DPI reflected an acceleration in the implicit price deflator for consumer spending, which is used to deflate DPI.

Real GDP, 2017

Real GDP (table 4, line 1) increased 2.3 percent in 2017 (from the 2016 annual level to the 2017 annual level) after increasing 1.5 percent in 2016. The increase in real GDP in 2017 primarily reflected positive contributions from consumer spending, nonresidential fixed investment, and exports. Imports, which are a subtraction in the calculation of GDP, increased. The acceleration in real GDP from 2016 to 2017 reflected upturns in nonresidential fixed investment and in exports and a smaller decrease in inventory investment. These movements were partly offset by decelerations in residential fixed investment and in state and local government spending. Imports accelerated.

* The upturn in nonresidential fixed investment (line 9) reflected upturns in equipment and in structures that were partly offset by a deceleration in investment in intellectual property products. The upturn in equipment was widespread. The upturn in structures investment was more than accounted for by an upturn in mining exploration, shafts, and wells.

* The deceleration in residential fixed investment (line 13) primarily reflected no change to investment in "other" structures in 2017 after an increase of 5.2 percent in 2016. A downturn in residential improvements was the main contributor.

* The smaller decrease in inventory investment (line 14) primarily reflected a smaller decrease in manufacturing industries and an upturn in mining, utilities, and construction industries.

* The upturn in exports (line 16) primarily reflected an upturn in nonautomotive capital goods and an acceleration in industrial supplies and materials.

* The acceleration in imports (line 19) primarily reflected an acceleration in nonautomotive capital goods and an upturn in consumers goods excluding food and automotive.

* The deceleration in state and local government spending (line 26) primarily reflected a deceleration in consumption expenditures and a larger decrease in structures investment.

Prepared by Lisa S. Mataloni

(1.) "Real" estimates are in chained (2009) dollars, and price indexes are chain-type measures. Each GDP estimate for a quarter (advance, second, and third) incorporates increasingly comprehensive and improved source data; for more information, see "The Revisions to GDP, GDI, and Their Major Components" in the January 2018 Survey of Current Business. Quarterly estimates are expressed at seasonally adjusted annual rates, which reflect a rate of activity for a quarter as if it were maintained for a year.

(2.) In this article, "consumer spending" refers to "personal consumption expenditures," "inventory investment" refers to "change in private inventories," and "government spending" refers to "government consumption expenditures and gross investment."

Note on Prices

BEA's gross domestic purchases price index is the most comprehensive index of prices paid by U.S. residents for all goods and services. It is derived from the prices of personal consumption expenditures (PCE), private investment, and government consumption expenditures and gross investment.

BEA also produces price indexes for all the components of GDP. The PCE price index is a measure of the total cost of consumer goods and services, including durable goods, nondurable goods, and services. PCE prices for food, for energy goods and services, and for all items except food and energy are also estimated and reported.

Because prices for food and for energy can be volatile, the price measure that excludes food and energy is often used as a measure of underlying, or "core," inflation. The core PCE price index includes purchased meals and beverages, such as restaurant meals and pet food. (See the FAQ "What is the core PCE price index?" on BEA's Web site.)

BEA also prepares a supplemental PCE price index, the "market-based" PCE price index, that is based on market transactions for which there are corresponding price measures. This index excludes many imputed expenditures, such as financial services furnished without payment, that are included in PCE and in the PCE price index. BEA also prepares a market-based measure that excludes food and energy.

Information on Key Source Data, Assumptions, and Methodologies

A comprehensive table that presents the "Key Source Data and Assumptions" that are used to prepare each vintage of the estimate of GDP for the current quarter is available on BEA's Web site. For the "advance" estimates that are released near the end of the month after the close of the quarter, the table shows the months of source data for the quarter that are available; for most components of GDP, 3 months of data are available. For the components for which only 2 months of source data are available, BEA's assumptions for the third month are shown. "Second" and "third" estimates are released near the end of the second and third months after the close of the quarter, respectively. With each vintage, the table is updated to add newly available and revised source data that have been incorporated into the estimates.

For additional details about the source data and the methodologies that are used to prepare the estimates, see Concepts and Methods of the U.S. National Income and Product Accounts on BEA's Web site.
Table 1. Real Gross Domestic Product (GDP) and Related Measures
[Seasonally adjusted at annual rates]

Line                                           Share of current-dollar
                                               GDP (percent)
                                               2017
                                               IV

 1   Gross domestic product (1)                100.0
 2   Personal consumption expenditures          69.1
 3     Goods                                    22.3
 4       Durable goods                           7.7
 5       Nondurable goods                       14.6
 6     Services                                 46.8
 7   Gross private domestic investment          16.7
 8     Fixed investment                         16.6
 9       Nonresidential                         12.7
10         Structures                            2.9
11         Equipment                             5.8
12         Intellectual property products        4.1
13      Residential                              3.9
14    Change in private inventories              0.0
15   Net exports of goods and services          -3.0
16      Exports                                 12.3
17       Goods                                   8.2
18       Services                                4.1
19   Imports                                    15.3
20     Goods                                    12.5
21     Services                                  2.8
22   Government consumption                     17.2
     expenditures and gross investment
23     Federal                                   6.5
24       National defense                        3.8
25       Nondefense                              2.6
26     State and local                          10.8
     Addenda:
27   Gross domestic income (GDI) (2)          ......
28   Average of GDP and GDI                   ......
29   Final sales of domestic product           100.0
30   Goods                                      29.7
31   Services                                   62.2
32   Structures                                  8.1
33   Motor vehicle output                        2.8
34   GDP excluding motor vehicle output         97.2
35   Final sales of computers                    0.4
36   GDP excluding final sales of computers     99.6
37   Research and development (R&D)              2.5
38   GDP excluding R&D                          97.5

Line                                          Change from preceding
                                              period (percent)
                                              2017
                                              I      II     III     IV

 1   Gross domestic product (1)                1.2   3.1    3.2    2.6
 2   Personal consumption expenditures         1.9   3.3    2.2    3.8
 3     Goods                                   0.7   5.4    4.5    8.2
 4       Durable goods                        -0.1   7.6    8.6   14.2
 5       Nondurable goods                      1.1   4.2    2.3    5.2
 6     Services                                2.5   2.3    1.1    1.8
 7   Gross private domestic investment        -1.2   3.9    7.3    3.6
 8     Fixed investment                        8.1   3.2    2.4    7.9
 9       Nonresidential                        7.2   6.7    4.7    6.8
10         Structures                         14.8   7.0   -7.0    1.4
11         Equipment                           4.4   8.8   10.8   11.4
12         Intellectual property products      5.7   3.7    5.2    4.5
13      Residential                           11.1  -7.3   -4.7   11.6
14    Change in private inventories
15   Net exports of goods and services
16      Exports                                7.3   3.5    2.1    6.9
17       Goods                                10.8   2.2    1.8   12.6
18       Services                              1.0   6.2    2.5   -3.3
19   Imports                                   4.3   1.5   -0.7   13.9
20     Goods                                   4.7   1.3   -0.2   16.8
21     Services                                2.5   2.2   -2.6    1.7
22   Government consumption                   -0.6  -0.2    0.7    3.0
     expenditures and gross investment
23     Federal                                -2.4   1.9    1.3    3.5
24       National defense                     -3.3   4.7    2.4    6.0
25       Nondefense                           -1.2  -1.9   -0.2    0.1
26     State and local                         0.5  -1.5    0.2    2.6
     Addenda:
27   Gross domestic income (GDI) (2)           2.7   2.3    2.0   ......
28   Average of GDP and GDI                    2.0   2.7    2.6   ......
29   Final sales of domestic product           2.7   2.9    2.4    3.2
30   Goods                                    -1.6   7.3    9.6    3.3
31   Services                                  1.5   2.1    1.5    1.4
32   Structures                               10.3  -4.3   -6.2    9.0
33   Motor vehicle output                     -7.3   0.8  -10.3   32.8
34   GDP excluding motor vehicle output        1.5   3.1    3.6    1.8
35   Final sales of computers                 23.3  22.3  -24.2   12.9
36   GDP excluding final sales of computers    1.2   3.0    3.3    2.5
37   Research and development (R&D)            7.1   1.3    0.9   -1.2
38   GDP excluding R&D                         1.1   3.1    3.2    2.7

Line                                           Contribution to percent
                                               change in real GDP
                                              (percentage points)
                                                2017
                                                 I         II        III

 1   Gross domestic product (1)                 1.2       3.1       3.2
 2   Personal consumption expenditures          1.32      2.24      1.49
 3     Goods                                    0.15      1.16      0.97
 4       Durable goods                         -0.01      0.56      0.63
 5       Nondurable goods                       0.16      0.61      0.34
 6     Services                                 1.17      1.08      0.52
 7   Gross private domestic investment         -0.20      0.64      1.19
 8     Fixed investment                         1.27      0.53      0.40
 9       Nonresidential                         0.86      0.82      0.58
10         Structures                           0.39      0.20     -0.21
11         Equipment                            0.24      0.48      0.58
12         Intellectual property products       0.23      0.15      0.21
13      Residential                             0.41     -0.30     -0.18
14    Change in private inventories            -1.46      0.12      0.79
15   Net exports of goods and services          0.22      0.21      0.36
16      Exports                                 0.85      0.42      0.25
17       Goods                                  0.81      0.18      0.15
18       Services                               0.04      0.25      0.10
19   Imports                                   -0.63     -0.22      0.11
20     Goods                                   -0.56     -0.16      0.03
21     Services                                -0.07     -0.06      0.07
22   Government consumption                    -0.11     -0.03      0.12
     expenditures and gross investment
23     Federal                                 -0.16      0.13      0.09
24       National defense                      -0.13      0.18      0.09
25       Nondefense                            -0.03     -0.05     -0.01
26     State and local                          0.05     -0.16      0.03
     Addenda:
27   Gross domestic income (GDI) (2)           ......    ......   ......
28   Average of GDP and GDI                    ......    ......   ......
29   Final sales of domestic product            2.70      2.94      2.37
30   Goods                                     -0.47      2.10      2.74
31   Services                                   0.91      1.32      0.93
32   Structures                                 0.80     -0.36     -0.51
33   Motor vehicle output                      -0.22      0.02     -0.30
34   GDP excluding motor vehicle output         1.45      3.04      3.45
35   Final sales of computers                   0.08      0.08     -0.10
36   GDP excluding final sales of computers     1.16      2.98      3.26
37   Research and development (R&D)             0.18      0.03      0.02
38   GDP excluding R&D                          1.06      3.03      3.13

Line                                                   IV

 1     Gross domestic product (1)                   2.6
 2     Personal consumption expenditures            2.58
 3       Goods                                      1.76
 4         Durable goods                            1.02
 5         Nondurable goods                         0.74
 6       Services                                   0.82
 7     Gross private domestic investment            0.60
 8       Fixed investment                           1.27
 9         Nonresidential                           0.84
10           Structures                             0.04
11           Equipment                              0.62
12           Intellectual property products         0.18
13        Residential                               0.42
14      Change in private inventories              -0.67
15     Net exports of goods and services           -1.13
16        Exports                                   0.82
17         Goods                                    0.96
18         Services                                -0.14
19     Imports                                     -1.96
20       Goods                                     -1.91
21       Services                                  -0.05
22     Government consumption                       0.50
       expenditures and gross investment
23       Federal                                    0.23
24         National defense                         0.22
25         Nondefense                               0.00
26       State and local                            0.28
       Addenda:
27     Gross domestic income (GDI) (2)              ......
28     Average of GDP and GDI                       ......
29     Final sales of domestic product              3.22
30     Goods                                        1.00
31     Services                                     0.86
32     Structures                                   0.69
33     Motor vehicle output                         0.78
34     GDP excluding motor vehicle output           1.77
35     Final sales of computers                     0.04
36     GDP excluding final sales of computers       2.51
37     Research and development (R&D)              -0.03
38     GDP excluding R&D                            2.58

(1.) The estimates of GDP under the contribution columns are also
percent changes.
(2.) GDI is deflated by the implicit price deflator for GDP.
Note. Percent changes are from NIPA tables 1.1.1 and 1.2.1,
contributions are from NIPA tables 1.1.2 and 1.2.2, and shares are from
NIPA table 1.1.10, or they are calculated from NIPA table 1.2.5.

Table 2. Prices for Gross Domestic Purchases
[Percent change at annual rates; based on seasonally adjusted index
numbers (2009=100)]

                                           Change from preceding period
                                                  (percent)
                                                  2017
Line                                     I      II     III        IV

 1      Gross domestic purchases (1)      2.6     0.9     1.7       2.5
 2   Personal consumption expenditures    2.2     0.3     1.5       2.8
 3      Goods                             2.7    -3.6     0.7       2.0
 4        Durable goods                   1.0    -3.6    -2.5      -1.8
 5        Nondurable goods                3.6    -3.6     2.4       4.0
 6      Services                          2.0     2.2     1.9       3.1
 7   Gross private domestic investment    1.7     2.6     1.9       1.0
 8      Fixed investment                  1.6     2.5     1.9       1.1
 9        Nonresidential                  1.5     1.9     1.1       0.6
10          Structures                    3.1     3.8     4.5       2.1
11          Equipment                     0.7     0.8     0.2      -0.1
12          Intellectual property         1.6     1.9     0.1       0.4
            products
13       Residential                      1.7     4.6     4.4       2.8
14     Change in private inventories     ......  ......   ......  ......
15   Government consumption               4.8     1.6     2.3       2.8
     expenditures and gross investment
16     Federal                            5.5     1.8     1.1       1.4
17        National defense                4.9     1.4     0.4       1.1
18        Nondefense                      6.3     2.3     2.1       2.0
19     State and local                    4.4     1.5     3.0       3.7
     Addenda:
     Gross domestic purchases:
20      Food                              0.3     2.1     0.2      -0.1
21       Energy goods and services       15.9   -16.0     8.4      30.7
22      Excluding food and energy         2.3     1.3     1.6       1.9
     Personal consumption expenditures
     (PCE):
23     Food and beverages purchased for   0.3     2.0     0.2      -0.1
     off-premises consumption
24     Energy goods and services         15.5   -16.0     8.4      30.5
25   Excluding food and energy            1.8     0.9     1.3       1.9
26   Gross domestic product (GDP)         2.0     1.0     2.1       2.4
27   Exports of goods and services        2.5    -0.1     3.3       5.8
28   Imports of goods and services        6.2    -1.0     0.4       6.0

                                         Contribution to percent change
                                         in gross domestic purchases
                                             prices (percentage points)
                                                   2017
Line                                      I         II          III

 1      Gross domestic purchases (1)      2.6        0.9         1.7
 2   Personal consumption expenditures    1.50       0.18        1.02
 3      Goods                             0.57      -0.79        0.16
 4        Durable goods                   0.07      -0.27       -0.19
 5        Nondurable goods                0.50      -0.52        0.34
 6      Services                          0.92       0.97        0.87
 7   Gross private domestic investment    0.27       0.40        0.30
 8      Fixed investment                  0.25       0.40        0.30
 9        Nonresidential                  0.19       0.23        0.14
10          Structures                    0.08       0.11        0.12
11          Equipment                     0.04       0.04        0.01
12          Intellectual property         0.06       0.08        0.00
            products
13       Residential                      0.06       0.17        0.16
14     Change in private inventories      0.02       0.01        0.00
15   Government consumption               0.80       0.27        0.38
     expenditures and gross investment
16     Federal                            0.34       0.11        0.07
17        National defense                0.18       0.05        0.02
18        Nondefense                      0.16       0.06        0.05
19     State and local                    0.46       0.16        0.31
     Addenda:
     Gross domestic purchases:
20      Food                              0.02       0.10        0.01
21       Energy goods and services        0.40      -0.45        0.21
22      Excluding food and energy         2.14       1.21        1.49
     Personal consumption expenditures
     (PCE):
23     Food and beverages purchased for   ......     ......      ......
     off-premises consumption             ......     ......      ......
24     Energy goods and services          ......     ......      ......
25   Excluding food and energy            ......     ......      ......
26   Gross domestic product (GDP)         ......     ......      ......
27   Exports of goods and services        ......     ......      ......
28   Imports of goods and services        ......     ......      ......

Line                                              IV

  1      Gross domestic purchases (1)         2.5
  2   Personal consumption expenditures       1.84
  3      Goods                                0.43
  4        Durable goods                     -0.13
  5        Nondurable goods                   0.56
  6      Services                             1.42
  7   Gross private domestic investment       0.17
  8      Fixed investment                     0.18
  9        Nonresidential                     0.07
 10          Structures                       0.06
 11          Equipment                        0.00
 12          Intellectual property            0.02
             products
 13       Residential                         0.10
 14     Change in private inventories        -0.01
 15   Government consumption                  0.47
      expenditures and gross investment
 16     Federal                               0.09
 17        National defense                   0.04
 18        Nondefense                         0.05
 19     State and local                       0.38
      Addenda:
      Gross domestic purchases:
 20      Food                                 0.00
 21       Energy goods and services           0.72
 22      Excluding food and energy            1.77
      Personal consumption expenditures
      (PCE):
 23     Food and beverages purchased for     ......
      off-premises consumption               ......
 24     Energy goods and services            ......
 25   Excluding food and energy              ......
 26   Gross domestic product (GDP)           ......
 27   Exports of goods and services          ......
 28   Imports of goods and services          ......

(1.) The estimates for gross domestic purchases under the contribution
columns are also percent changes.
Note. Most percent changes are from NIPA table 1.6.7; percent changes
for PCE for food and energy goods and services and for PCE excluding
food and energy are from NIPA table 2.3.7. Contributions are from NIPA
table 1.6.8. GDP, export, and import prices are from NIPA table 1.1.7.

Table 3. Personal Income and Its Disposition
[Billions of dollars; quarterly estimates are seasonally adjusted at
annual rates]

                                                             Level
                                                            2017
                                                        III        IV

 1   Personal Income                                  16,451.9  16,630.8
 2     Compensation of employees                      10,336.5  10,432.8
 3       Wages and salaries                            8,374.3   8,456.7
 4         Private industries                          7,029.2   7,104.5
 5           Goods-producing industries                1,374.6   1,389.3
 6              Manufacturing                            834.2     841.2
 7            Services-producing industries            5,654.6   5,715.2
 8               Trade, transportation, and            1,303.5   1,315.7
                 utilities
 9               Other services-producing industries   4,351.1   4,399.5
10         Government                                  1,345.1   1,352.2
11       Supplements to wages and salaries             1,962.2   1,976.0
12     Proprietors' income with IVA and CCAdj          1,381.9   1,401.9
13       Farm                                             31.9      29.7
14       Nonfarm                                       1,350.0   1,372.1
15   Rental income of persons with CCAdj                 747.2     759.7
16   Personal income receipts on assets                2,433.9   2,476.5
17       Personal interest income                      1,460.6   1,501.4
18       Personal dividend income                        973.2     975.1
19   Personal current transfer receipts                2,858.4   2,878.9
20      Government social benefits to persons          2,798.5   2,818.2
21         Social security                               930.0     935.5
22         Medicare                                      676.4     681.9
23         Medicaid                                      583.4     589.1
24         Unemployment insurance                         28.5      27.8
           Veterans' benefits
25                                                        99.2     100.2
26         Other                                         481.0     483.7
27       Other current transfer                           59.9      60.7
         receipts, from business (net)
        Less: Contributions for government
        social insurance
28                                                     1,306.0   1,318.9
29      Less: Personal current taxes                   2,046.4   2,086.3
30   Equals: Disposable personal income (DPI)         14,405.5  14,544.4
31   Less: Personal outlays                           13,927.2  14,160.0
32   Equals: Personal saving                             478.3     384.4
33   Personal saving as a percentage of DPI                3.3       2.6
     Addenda: Percent change at annual rate
34        Current-dollar DPI                            ......    ......
35        Real DPI, chained (2009) dollars              ......    ......

                                                        Change from
                                                      preceding period
                                                          2017
                                                       I          II

 1   Personal Income                                  219.5      94.3
 2     Compensation of employees                      151.4      76.7
 3       Wages and salaries                           124.3      63.1
 4         Private industries                         108.9      56.8
 5           Goods-producing industries                20.7       9.3
 6              Manufacturing                          12.9       4.6
 7            Services-producing industries            88.2      47.5
 8               Trade, transportation, and            25.6       7.1
                 utilities
 9               Other services-producing industries   62.6      40.5
10         Government                                  15.3       6.3
11       Supplements to wages and salaries             27.1      13.6
12     Proprietors' income with IVA and CCAdj          25.7      -1.6
13       Farm                                           4.0      -4.8
14       Nonfarm                                       21.6       3.3
15   Rental income of persons with CCAdj               11.9       9.5
16   Personal income receipts on assets                28.5      14.4
17       Personal interest income                      38.1     -11.5
18       Personal dividend income                      -9.6      25.9
19   Personal current transfer receipts                35.9       5.1
20      Government social benefits to persons          35.5       4.3
21         Social security                             10.1       6.8
22         Medicare                                     4.5       4.1
23         Medicaid                                     3.5      -4.0
24         Unemployment insurance                      -0.4      -1.7
           Veterans' benefits
25                                                      1.5       2.5
26         Other                                       16.3      -3.4
27       Other current transfer                         0.5       0.7
         receipts, from business (net)
        Less: Contributions for government
        social insurance
28                                                     33.9       9.7
29      Less: Personal current taxes                   41.6     -10.9
30   Equals: Disposable personal income (DPI)         177.9     105.2
31   Less: Personal outlays                           134.9     134.1
32   Equals: Personal saving                           43.0     -28.9
33   Personal saving as a percentage of DPI           ......   ......
     Addenda: Percent change at annual rate
34        Current-dollar DPI                            5.2       3.0
35        Real DPI, chained (2009) dollars              2.9       2.7

                                                         Change from
                                                      preceding period
                                                           2017
                                                        III     IV

 1   Personal Income                                   112.3   178.9
 2     Compensation of employees                        93.5    96.2
 3       Wages and salaries                             79.1    82.4
 4         Private industries                           70.7    75.4
 5           Goods-producing industries                 14.7    14.8
 6              Manufacturing                            5.1     7.0
 7            Services-producing industries             56.0    60.6
 8               Trade, transportation, and              7.9    12.3
                 utilities
 9               Other services-producing industries    48.1    48.3
10         Government                                    8.4     7.1
11       Supplements to wages and salaries              14.4    13.8
12     Proprietors' income with IVA and CCAdj            3.3    19.9
13       Farm                                           -5.1    -2.2
14       Nonfarm                                         8.4    22.2
15   Rental income of persons with CCAdj                 6.9    12.5
16   Personal income receipts on assets                 -0.6    42.6
17       Personal interest income                       -4.5    40.7
18       Personal dividend income                        3.9     1.8
19   Personal current transfer receipts                 21.4    20.5
20      Government social benefits to persons           20.7    19.8
21         Social security                               7.2     5.5
22         Medicare                                      4.9     5.5
23         Medicaid                                      6.0     5.8
24         Unemployment insurance                       -0.1    -0.7
           Veterans' benefits
25                                                       1.2     0.9
26         Other                                         1.6     2.7
27       Other current transfer                          0.7     0.8
         receipts, from business (net)
        Less: Contributions for government
        social insurance
28                                                      12.2    12.9
29      Less: Personal current taxes                    38.4    40.0
30   Equals: Disposable personal income (DPI)           73.8   139.0
31   Less: Personal outlays                            121.2   232.8
32   Equals: Personal saving                           -47.4   -93.9
33   Personal saving as a percentage of DPI            ......  ......
     Addenda: Percent change at annual rate
34        Current-dollar DPI                             2.1     3.9
35        Real DPI, chained (2009) dollars               0.5     1.1

CCAdj Capital consumption adjustment
IVA Inventory valuation adjustment
Note. Dollar levels and percent changes are from NIPA tables 2.1 and
2.2B.

Table 4. Real Gross Domestic Product (GPP) and Components for 2016 and
2017
[Seasonally adjusted at annual rates]

                                              Share of current-dollar
                                              GDP (percent)

Line
 1            Gross domestic product (1)      100.0
 2   Personal consumption expenditures         69.1
 3     Goods                                   22.2
 4        Durable goods                         7.6
 5        Nondurable goods                     14.6
 6     Services                                46.9
 7   Gross private domestic investment         16.6
 8     Fixed investment                        16.5
 9        Nonresidential                       12.6
10          Structures                          2.9
11          Equipment                           5.7
12           Intellectual property products     4.1
13        Residential                           3.9
14     Change in private inventories            0.1
15   Net exports of goods and services         -2.9
16      Exports                                12.1
17        Goods                                 8.0
18        Services                              4.1
19     Imports                                 15.0
20      Goods                                  12.3
21      Services                                2.8
22   Government consumption                    17.3
     expenditures and gross investment
23     Federal                                  6.5
24       National defense                       3.8
25       Nondefense                             2.7
26   State and local                           10.8
     Addenda:
27   Gross domestic income (GDI) (2)         ......
28   Average of GDP and GDI                  ......

                                             Change from preceding
                                             period (percent)
Line                                          2016  2017

 1            Gross domestic product (1)      1.5    2.3
 2   Personal consumption expenditures        2.7    2.7
 3     Goods                                  3.7    3.9
 4        Durable goods                       5.5    6.7
 5        Nondurable goods                    2.8    2.4
 6     Services                               2.3    2.2
 7   Gross private domestic investment       -1.6    3.2
 8     Fixed investment                       0.7    4.0
 9        Nonresidential                     -0.6    4.7
10          Structures                       -4.1    5.3
11          Equipment                        -3.4    4.8
12           Intellectual property products   6.3    4.2
13        Residential                         5.5    1.7
14     Change in private inventories
15   Net exports of goods and services
16      Exports                              -0.3    3.4
17        Goods                               0.3    4.5
18        Services                           -1.5    1.1
19     Imports                                1.3    3.9
20      Goods                                 0.9    4.3
21      Services                              3.1    2.5
22   Government consumption                   0.8    0.1
     expenditures and gross investment
23     Federal                                0.0    0.2
24       National defense                    -0.7    0.3
25       Nondefense                           1.2    0.1
26   State and local                          1.2    0.1
     Addenda:
27   Gross domestic income (GDI) (2)          0.9   ......
28   Average of GDP and GDI                   1.2   ......

                                             Contribution to percent
                                             change in real GDP
                                             (percentage points)
Line                                          2016    2017

 1            Gross domestic product (1)      1.5     2.3
 2   Personal consumption expenditures        1.86    1.88
 3     Goods                                  0.81    0.85
 4        Durable goods                       0.41    0.50
 5        Nondurable goods                    0.40    0.36
 6     Services                               1.05    1.03
 7   Gross private domestic investment       -0.28    0.53
 8     Fixed investment                       0.12    0.65
 9        Nonresidential                     -0.08    0.58
10          Structures                       -0.12    0.15
11          Equipment                        -0.20    0.26
12           Intellectual property products   0.25    0.17
13        Residential                         0.20    0.07
14     Change in private inventories         -0.40   -0.12
15   Net exports of goods and services       -0.23   -0.18
16      Exports                              -0.04    0.40
17        Goods                               0.02    0.35
18        Services                           -0.06    0.05
19     Imports                               -0.19   -0.58
20      Goods                                -0.11   -0.51
21      Services                             -0.09   -0.07
22   Government consumption                   0.13    0.02
     expenditures and gross investment
23     Federal                                0.00    0.01
24       National defense                    -0.03    0.01
25       Nondefense                           0.03    0.00
26   State and local                          0.13    0.01
     Addenda:
27   Gross domestic income (GDI) (2)          ......  ......
28   Average of GDP and GDI                   ......  ......

(1.) The estimates of GDP under the contribution columns are also
percent changes.
(2.) GDI is deflated by the implicit price deflator for GDP.
Note. Percent changes are from NIPA table 1.1.1, contributions to
percent change are from NIPA table 1.1.2, and shares are from NIPA
table 1.1.10.
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Author:Mataloni, Lisa S.
Publication:Survey of Current Business
Date:Feb 1, 2018
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