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Updated summary of NIPA methodologies.

The Bureau of Economic Analysis (BEA) has recently improved its estimates of current-dollar gross domestic product (GDP), current-dollar gross domestic income (GDI), and real GDP as part of the 2007 annual revision of the national income and product accounts (NIPAs). (1) The sources of data and methodologies that are now used to prepare the NIPA estimates are presented in this report.

Current-dollar estimates of GDP and GDI

The current-dollar estimates of GDP and GDI for 2006 are presented in table 1. The components and subcomponents of GDP and GDI are listed according to the estimation method used by BEA (column 1). Information about the sources of data and the methods that are used to prepare the estimates for the comprehensive benchmark revisions and for the annual revisions in nonbenchmark years are also presented, and the major differences between the data and the methods used in benchmark revisions and those used in the annual revisions are noted (column 2). For example, for "most durable and nondurable goods" in personal consumption expenditures (PCE) (the first item in table 1), the table indicates that one methodology (commodity flow) is used to prepare estimates for benchmark years, and another methodology (retail control) is used to prepare the estimates for all the other years.

Additionally, information about the advance quarterly estimates, which are prepared about a month after the end of the quarter, are presented (column 3). Information about the advance quarterly estimates rather than about the preliminary or final quarterly estimates are provided because more attention tends to be focused on this "first look" at the estimate for a quarter. Only the source data and methods are listed; the number of months of available source data or whether the source data will be revised by the source agency are not listed. (2)

Source data

The source data include a variety of economic measures, such as sales or receipts, wages and salaries, unit sales, housing stock, insurance premiums, expenses, interest rates, mortgage debt, and tax collections.

For most components, the estimates are derived from source data that are "value data": They encompass both the quantity data and the price data required to prepare current-dollar estimates. For these components, the value data are adjusted to derive estimates that are consistent with NIPA definitions and coverage (see table 1).

For the estimates that are not derived from value data, the sources of the quantity and price data that are used to prepare value estimates are indicated, and the major adjustments that are needed to derive estimates that are consistent with NIPA definitions and coverage are specified.

For the current-dollar estimates of GDP, a "physical quantity times price" method is used for several components. For example, the annual estimate of expenditures on new autos in a nonbenchmark year is calculated as unit sales times expenditure per auto (the average list price with options adjusted for transportation charges, sales tax, dealer discounts, and rebates).

For the current-dollar estimates of GDI, two methods are used for several components--an "employment times earnings times hours" method and variations of a "stock of assets/liabilities times an effective interest rate" method.

Some of the source data are used as indicators to interpolate or extrapolate annual estimates. In some cases, extrapolation and interpolation may be based on trends; in that case, the use of "judgmental trend" is indicated. (3)

Estimation methods

In some cases, BEA also uses four methods to estimate values: The commodity-flow method, the retail control method, the perpetual inventory method, and the fiscal year analysis method.

The commodity-flow method involves estimating values based on various measures of output. For example, the estimates of personal expenditures on new autos in benchmark years are based on data on manufacturers' shipments from the Census Bureau, and BEA adjusts the data for imports and exports. In general, this method is used to derive estimates of various components of PCE, equipment and software, and of the commodity detail for state and local government consumption expenditures and gross investment. (4) An abbreviated form of this method is used to prepare estimates of equipment and software in nonbenchmark years, and an even more abbreviated form is used to prepare the current quarterly estimates of equipment and software.

The retail control method uses retail sales data, usually compiled by the Census Bureau, to estimate expenditures. (5) It is used to prepare estimates of many subcomponents of durable and nondurable goods in nonbenchmark years.

The perpetual inventory method is used to derive estimates of fixed capital stock, which are used to estimate consumption of fixed capital. This method is based on investment flows and a geometric depreciation formula. (6)

The fiscal year analysis method is used to estimate annual and quarterly estimates of consumption expenditures and gross investment by the Federal Government. The estimates of expenditures are calculated by program, that is, by activity for a single line item or for a group of line items in the Budget of the U.S. Government. For most programs, BEA adjusts budget outlays so that they conform to the NIPAs and classifies the expenditures in the appropriate NIPA category--such as current transfer payments and interest payments--with nondefense consumption expenditures and gross investment that are determined residually. When a fiscal year analysis is completed, the detailed array of NIPA expenditures by program and by type of expenditure provides a set of control totals for the quarterly estimates. (7)

International transactions accounts

The source data for the foreign transactions that are reflected in most NIPA components--such as net exports of goods and services, net income receipts and rest-of-the-world corporate profits--are from the international transactions accounts (ITAs) that are prepared by BEA. (8)

As noted in table 1, for some NIPA components, the ITA estimates are adjusted to conform to NIPA concepts and definitions. For the annual estimates of these adjustments and their definitions, see NIPA table 4.3B in the August 2007 SURVEY (page 115); for summary quarterly estimates, see the reconciliation table in appendix A in the SURVEY.

Reconciliation tables. In preparing the annual estimates of several components of GDI, BEA adjusts the source data to conform to the NIPA concepts and coverage. For each subcomponent, an annual NIPA table reconciles the value published by the source agency with the NIPA value published by BEA, and the adjustments are listed. Reconciliation tables for the following subcomponents were published in "National Income and Product Accounts Tables" in the August 2007 SURVEY: Consumption of fixed capital in table 7.13, nonfarm proprietors' income in table 7.14, corporate profits in table 7.16, net monetary interest in table 7.17, and wages and salaries in table 7.18.

Real estimates of GDP

BEA uses three methods to estimate real GDP: The deflation method, the quantity extrapolation method, and the direct valuation method. These methods and the source data that are used are presented in table 2.

The deflation method is used for most components of GDP. The quantity index is derived by dividing the current-dollar index by an appropriate price index that has the base year--currently 2000--equal to 100. The result is then multiplied by 100.

The quantity extrapolation method uses quantity indexes that are obtained by using a quantity indicator to extrapolate from the base-year value of 100.

The direct valuation method uses quantity indexes that are obtained by multiplying the base-year price by actual quantity data for the index period. The result is then expressed as an index with the base year equal to 100.

The subcomponents in table 2 are the same as those shown in table 1, but the detail differs to highlight the alternative methodologies that are used to calculate the real estimates. (9)

(1.) The concepts and methodologies that underlie the NIPAs are subject to periodic improvements as part of the comprehensive and annual NIPA revisions, and these improvements are described in a series of articles in the SURVEY OF CURRENT BUSINESS; for a list of these articles, see appendix B at the back of this issue. See also Eugene P. Seskin and Shelly Smith, "Annual Revision of the National Income and Product Accounts," SURVEY 87 (August 2007): 6-29.

(2.) For information on the key monthly source data, see "GDP and the Economy" in the SURVEY.

(3.) For a few components, the final quarterly estimates are based on newly available source data that replace judgmental trends.

(4.) For additional information on the commodity-flow method, see the BEA methodology paper Personal Consumption Expenditures at <www.bea.gov\bea\mp.htm>, 31-34.

(5.) See Personal Consumption Expenditures, 41-54.

(6.) For additional information, see Fixed Assets and Consumer Durable Goods in the United States, 1925-97 (September 2003): M-5-M-11; <www.bea.gov/bea/mp.htm>.

(7.) For details, see the methodology paper Government Transactions at <www.bea.gov/bea/mp.htm>.

(8.) See The Balance of Payments of the United States: Concepts, Data Sources, and Estimating Procedures at <www.bea.gov/bea/mp.htm>. Improvements in methodology are usually introduced as part of the annual ITA revision; see Christopher L. Bach, "Annual Revision of the U.S. International Transactions Accounts," SURVEY 87 (July 2007): 37-49.

(9.) For real estimates, the distinction between annual and quarterly methodologies is less important than it is for the current-dollar estimates. For the relatively few cases in which the annual and quarterly source data differ, the major differences are noted.
Table 1. Source Data and Methods for Current-Dollar
GDP and Current-Dollar GDI

 Component Annual estimates:
 Source data and methods used to
 determine level for benchmark and
 other years or used to prepare an
 extrapolator or interpolator

 Gross domestic product of $13,194.7 billion for 2006

Personal consumption expenditures ($9,224.5 billion)

 Durable and nondurable goods ($3,737.0 billion) (1)

 Most durable and Benchmark years. Commodity-flow
 nondurable goods except method, starting with
 those listed below manufacturers' shipments from
 ($3,040.2 billion) (2) Census Bureau quinquennial census
 and including an adjustment for
 exports and imports from Census
 Bureau foreign trade data.
 Other years. Retail-control method,
 using retail sales from Census
 Bureau annual survey of retail
 trade or, for the most recent
 year, monthly survey of retail
 trade.

 New autos ($107.1 billion) Benchmark years. Commodity-flow
 method, starting with
 manufacturers' shipments from
 Census Bureau quinquennial census
 and including an adjustment for
 exports and imports from Census
 Bureau foreign trade data.
 Other years. Physical quantity
 purchased times average retail
 price: Unit sales, information
 to allocate sales among consumers
 and other purchasers, and average
 list price with options, all from
 trade sources. Transportation
 charges, dealer discounts, and
 rebates from Bureau of Labor
 Statistics (BLS) monthly survey
 of auto sales prices. Sales tax
 rate from Census Bureau annual
 survey of retail trade.

 Net purchases of used Benchmark years. For net
 autos and used light transactions, residual based on
 trucks ($117.9 billion) net sales by other sectors. For
 dealers' margin, retail sales
 from Census Bureau quinquennial
 census and margin rate from
 Census Bureau annual survey of
 retail trade.
 Other years except the most recent
 year. For net transactions,
 change in consumer stock of
 autos from trade sources. For
 dealers' margin, for franchised
 dealers, unit sales and sales
 price from trade sources times
 margin rate for independent
 dealers from Census Bureau
 annual survey of retail trade;
 for independent dealers, margin
 from Census Bureau annual survey
 of retail trade.
 Most recent year. For net
 transactions, same as other
 years except the most recent.
 For dealers' margin, for
 franchised dealers, unit sales
 and sales price from trade
 sources; for independent dealers,
 sales from Census Bureau monthly
 survey of retail trade.

 New light trucks (including Benchmark years. Commodity-flow
 utility vehicles) ($134.1 method, starting with
 billion) manufacturers' shipments from
 Census Bureau quinquennial census
 and including an adjustment for
 exports and imports from Census
 Bureau foreign trade data.
 Other years. Physical quantity
 purchased times average retail
 price: Unit sales, information
 to allocate sales among consumers
 and other purchasers, and average
 transactions prices that reflect
 all discounts and customer
 rebates, all from trade sources.
 Sales tax rate from Census Bureau
 annual survey of retail trade.

 Gasoline and oil ($318.6 Benchmark years. Physical quantity
 billion) (2) purchased times average retail
 price: Gallons consumed from the
 Department of Transportation;
 information to allocate that
 total among consumers and other
 purchasers from Federal agencies
 and trade sources; average retail
 price from the Energy Information
 Administration (EIA).
 Other years except the most recent
 year. Same as benchmark years.
 Most recent year. Physical quantity
 purchased times average retail
 price: Gallons consumed and
 average price from EIA.

 Food furnished to Benchmark years. For commercial
 employees (including employees, number of employees
 military) ($13.8 billion) of relevant industries from BLS
 tabulations times BEA estimate
 of per capita expenditures for
 food; for military personnel,
 outlays from the Budget of the
 United States prepared by the
 Office of Management and Budget
 (OMB).
 Other years. Same as benchmark
 years except per capita
 expenditures for food based on
 BLS consumer price index (CPI)
 for food.

 Expenditures abroad by Estimated as part of the
 U.S. residents ($8.0 international transactions
 billion) less personal accounts; see the entry for
 remittances in kind to exports and imports of services
 nonresidents ($2.7 billion) under net exports of goods and
 services.

Services ($5,487.6 billion)

 Nonfarm dwellings: Space Benchmark years. Based on data on
 rent for owner-occupied housing stock and average annual
 dwellings and rent for rent from Census Bureau decennial
 tenant-occupied census of housing and survey of
 dwellings ($1,291.5 residential finance, adjusted
 billion) for utilities included in rent.
 Other years. Based on data on
 housing stock and average annual
 rent from Census Bureau biennial
 housing survey or on the number
 of housing units from Census
 Bureau monthly current population
 survey and BLS CPI for rent.

 Rental value of farm U.S. Department of Agriculture
 dwellings ($14.8 billion) (USDA) data on gross rental
 value of farm dwellings.

 Motor vehicle repair, rental, Benchmark years. Receipts and
 and other services; other expenses from Census Bureau
 repair services; other quinquennial census adjusted for
 purchased intercity receipts from business and
 transportation; legal and governments.
 funeral services; barber- Other years. For educational
 shops, beauty parlors, services not elsewhere classified
 and health clubs; nursing and foundations, BLS tabulations
 homes; laundries; from the Quarterly Census of
 employment agency fees; Employment and Wages (QCEW); for
 accounting and tax return others in this group, receipts
 preparation services; and expenses from Census Bureau
 recreation (except cable service annual survey.
 TV, parimutuel net
 receipts, lotteries, and
 computer online
 services); hotels and
 motels; commercial
 business, trade, and
 correspondence schools;
 educational services not
 elsewhere classified;
 research organizations
 and foundations ($944.7
 billion)

 Physicians, dentists, home Benchmark years. For nonprofit
 health care, medical professional services, expenses,
 laboratories, eye and for others in this group,
 examinations, all other receipts, adjusted for government
 professional medical consumption, all from Census
 services ($702.8 billion) Bureau quinquennial census.
 Other years. Receipts and
 expenses, adjusted for government
 consumption, from Census Bureau
 service annual survey.

 Private nursery schools, Benchmark years. For elementary and
 elementary and secondary schools, expenses
 secondary schools, day from the Department of Education;
 care, museums and for nursery schools and day care,
 libraries, welfare expenditures from BLS consumer
 activities, political expenditure survey; for others
 organizations, in this group, receipts and
 foundations, and trade expenses from Census Bureau
 unions and professional quinquennial census.
 associations ($249.7 Other years. For nursery schools
 billion) and day care, same as benchmark
 years; for welfare activities,
 receipts and expenses from Census
 Bureau service annual survey;
 for others in this group, BLS
 tabulations from the QCEW.

 Financial services See the entry for banks, credit
 furnished without agencies, and investment
 payment by banks, other companies under net interest
 depository institutions, and miscellaneous payments.
 and investment
 companies ($208.5
 billion) (3)

 Brokerage charges and All years except the most recent
 investment counseling, year. For private higher
 bank service charges, education, expenses, and for
 intercity transportation others in this group, receipts
 except "other," and from annual reports of government
 private higher education administrative agencies.
 ($319.6 billion) Most recent year. For brokerage
 charges, bank service charges,
 and intercity transportation,
 receipts from annual reports of
 government administrative
 agencies; for investment
 counseling, receipts from Census
 Bureau service annual survey;
 for private higher education,
 enrollment from the Department
 of Education times price index
 for higher education from trade
 source.

 Domestic service ($20.7 Benchmark years. For cleaning
 billion) services, receipts from Census
 Bureau quinquennial census; for
 other domestic services, number
 of workers times weekly hours
 times earnings from BLS. Other
 years. Number of workers times
 weekly hours times earnings
 from BLS.

 Public education and All years except the most recent
 hospitals, water and year. For lotteries, net receipts
 other sanitary services, from Census Bureau quinquennial
 and lotteries ($280.5 census and annual surveys of
 billion) state and local governments,
 adjusted to a calendar year basis
 from a fiscal year basis; for
 others in this group, receipts
 from the same sources.
 Most recent year. Judgmental trend.

 Insurance, private Benchmark years. For life insurance,
 hospitals, religious expenses from trade sources; for
 activities, cable TV, medical and hospitalization
 electricity, natural gas, insurance, premiums from the
 telephone, and local Agency for Healthcare Research
 transport ($1,310.1 and Quality and benefits based
 billion) on ratio of benefits to premiums
 from Census Bureau quinquennial
 census; for other insurance,
 premiums and dividends to
 policyholders from trade source,
 normal losses and expected
 investment income derived using
 incurred losses and investment
 gains, respectively, from trade
 source; for private hospitals,
 receipts and expenses from Census
 Bureau quinquennial census; for
 cable TV and telephone, receipts
 from Census Bureau quinquennial
 census; for religious activities,
 expenses based on contributions
 and membership from trade
 sources; for electricity and gas,
 receipts from EIA; for local
 transport, receipts from trade
 source.
 Other years except the most recent
 year. For private and nonprofit
 hospitals, expenses from trade
 source; for private proprietary
 hospitals and cable TV, receipts
 from Census Bureau service annual
 survey; for telephone, receipts
 from the Federal Communications
 Commission; for others in this
 group, same as benchmark years.
 Most recent year. For life
 insurance, wages and salaries
 from BLS tabulations from QCEW;
 for medical and hospitalization
 insurance, BLS employer costs
 for employee health insurance
 and wages and salaries from BLS
 tabulations of employees from
 QCEW; for other insurance,
 judgmental trend; for private
 hospitals, receipts and expenses
 from Census Bureau service annual
 survey; for religious activities,
 expenses based on population
 from the Census Bureau and per
 capita disposable personal income
 from BEA; for local transport,
 passenger trips from trade
 sources times BLS CPI for
 intracity mass transit; for
 electricity and natural gas,
 same as benchmark years; for
 cable TV, receipts from Census
 Bureau service annual survey; for
 telephone, receipts from company
 reports and trade sources.

 Foreign travel by U.S. Estimated as part of the
 residents ($108.7 billion) international transactions
 less expenditures in the accounts; see the entry for
 United States by non- exports and imports of services
 residents ($109.9 billion) under net exports of goods and
 services.

 Other services: Motor Various source data.
 vehicle leasing; parimutuel
 net receipts; other housing
 except hotels and motels;
 bridge, etc. tolls; other
 household operation
 except repairs and
 insurance; travel and
 entertainment card fees;
 stenographic and
 reproduction services;
 money orders and
 classified advertising; and
 computer online services
 ($145.8 billion)

Fixed investment ($2,162.5 billion)

 Nonresidential structures ($405.1 billion)

 Commercial and health care Benchmark years. BEA's benchmark
 ($154.0 billion) input-output table.
 Other years. Value put in place
 from Census Bureau monthly
 construction survey.

 Manufacturing ($26.8 billion) Value put in place from Census
 Bureau monthly construction
 survey.

 Power and communication Value put in place from Census
 ($47.3 billion) Bureau monthly construction
 survey.

 Mining exploration, shafts, Benchmark years. Expenditures from
 and wells ($105.4 billion) Census Bureau quinquennial
 census.

 All years except the most recent
 year. For petroleum and natural
 gas, physical quantity times
 average price: Footage drilled
 and cost per foot from trade
 sources; for other mining,
 expenditures from Census Bureau
 annual capital expenditure
 survey.
 Most recent year. For petroleum and
 natural gas, physical quantity
 times average price: Footage
 drilled and cost per foot from
 trade sources extrapolated by
 BLS producer price index for oil
 and gas well drilling.

 Other structures ($71.7 Benchmark years. BEA's benchmark
 billion) input-output table.
 Other years. Value put in place
 from Census Bureau monthly
 construction survey.

 Nonresidential equipment and software ($992.6 billion)

 Equipment except new Benchmark years. Commodity-flow
 autos, new light trucks, method, starting with
 and net purchases of used manufacturers' shipments from
 autos and used light trucks Census Bureau quinquennial census
 ($680.5 billion) and including an adjustment for
 exports and imports from Census
 Bureau foreign trade data.
 Other years. Abbreviated commodity-
 flow method, starting with
 manufacturers' shipments from
 Census Bureau annual survey or,
 for the most recent year (except
 aircraft, computers, and heavy
 trucks), monthly survey of
 manufacturers and including an
 adjustment for exports and
 imports from Census Bureau
 foreign trade data. For aircraft,
 manufacturers' shipments from
 Census Bureau current industrial
 report, adjusted for exports and
 imports. For computers,
 manufacturers' shipments from
 FRB industrial production index
 and Census Bureau monthly survey
 of manufacturers, adjusted for
 exports and imports. For heavy
 trucks, physical quantity
 purchased times average price:
 Unit sales and information to
 allocate sales among business
 and other purchasers, from trade
 sources; for truck trailers,
 shipments from trade source.

 New autos, new light trucks, See the entries under personal
 and net purchases of used consumption expenditures.
 autos and used light trucks
 ($108.8 billion)

 Software ($203.3 billion) Benchmark years. For purchased
 software, commodity-flow method,
 starting with industry receipts
 data from Census Bureau
 quinquennial census and including
 an adjustment for exports and
 imports from Census Bureau
 foreign trade data; for own-
 account software, production
 costs based on BLS employment
 data and on Census Bureau
 quinquennial census.
 Other years. For purchased
 software, commodity-flow method,
 starting with industry receipts
 data from Census Bureau service
 annual survey and including an
 adjustment for exports and
 imports from Census Bureau
 foreign trade data; for own-
 account software, production
 costs based on BLS employment
 data.

 Residential investment ($764.8 billion) (4)

 Permanent-site new single- Value put in place based on phased
 family housing units housing starts and average
 ($416.0 billion) construction cost from Census
 Bureau monthly construction
 survey.

 Permanent-site new multi- Value put in place from Census
 family housing units Bureau monthly construction
 ($53.0 billion) survey.

 Manufactured homes ($7.4 Benchmark years. See the entry for
 billion) Equipment except new autos, new
 light trucks, and net purchases
 of used autos and used light
 trucks" under nonresidential
 equipment and software. Other
 years. Physical quantity shipped
 times price: Shipments from
 trade source and average retail
 price from Census Bureau monthly
 survey.

 Improvements ($178.5 Benchmark years. For 1997, value
 billion) put in place from Census Bureau
 construction survey based on
 expenditures by owner-occupants
 from BLS quarterly consumer
 expenditure survey and by
 landlords from Census Bureau
 quarterly survey of landlords.
 Others years. A weighted 3-year
 moving average of the
 improvements estimates from
 Census Bureau value put in place
 construction survey.

 Brokers' commissions Physical quantity times price times
 ($101.5 billion) BEA estimate of average
 commission rate: Number of
 single-family houses sold and
 mean sales price from Census
 Bureau monthly construction
 survey and trade source.

 Equipment ($9.6 billion) See the entry for "Most durable and
 nondurable goods" under personal
 consumption expenditures.

Change in private inventories ($46.7 billion)

 Manufacturing and trade Benchmark years. Inventories from
 ($38.1 billion) Census Bureau quinquennial
 census revalued to current
 replacement cost, with
 information on the proportions
 of inventories reported using
 different accounting methods,
 on the commodity composition of
 goods held in inventory, and on
 the turnover period, all from
 Census Bureau quinquennial
 censuses and annual surveys,
 combined with prices, largely
 based on BLS producer price
 indexes. (The difference between
 Census Bureau change in
 inventories and BEA change in
 private inventories is the
 inventory valuation adjustment.)
 Other years except the most recent
 year. Inventories from Census
 Bureau annual surveys, revalued
 as described above.
 Most recent year. For retail auto
 dealers, quantities times average
 prices from trade sources; for
 all other, inventories from
 Census Bureau monthly surveys,
 revalued as described above.

 Mining, utilities, Benchmark years. Mining and
 construction, and other construction inventories from
 nonfarm industries Census Bureau quinquennial
 ($9.7 billion) census revalued to current
 replacement cost as described
 above for manufacturing and
 trade.
 Other years except the most recent.
 Internal Revenue Service (IRS)
 tabulations of business tax
 returns, revalued as described
 above.
 Most recent year. Census Bureau
 quarterly survey of mining
 corporations, monthly physical
 quantities from EIA combined with
 BLS producer price indexes for
 electric utilities, and for all
 others, judgmental trend,
 revalued as described above
 (except when noted as physical
 quantity times price).

 Farm (-$1.2 billion) USDA change in inventories adjusted
 to exclude Commodity Credit
 Corporation (CCC) forfeitures
 and to include net CCC loans at
 market value.

Net exports of goods and services (-$762.0 billion)

 Exports and imports of Estimated as part of the
 goods, net (850.0 billion) international transactions
 accounts: Export and import
 documents compiled monthly by
 the Census Bureau with
 adjustments by BEA for coverage
 and valuation to convert the
 data to a balance-of-payments
 basis. Adjusted for the balance-
 of-payments coverage of U.S.
 territories and Puerto Rico with
 data from the Commonwealth of
 Puerto Rico, the U.S. Virgin
 Islands, and the Census Bureau,
 and coverage of gold transactions
 adjusted with data from the U.S.
 Geological Survey and trade
 sources.

 Exports and imports of Estimated as part of the
 services, net ($88.0 billion) international transactions
 accounts: For government
 transactions, reports by Federal
 agencies on their purchases and
 sales abroad; for most others in
 this group (including travel,
 passenger fares, other
 transportation, and royalties
 and license fees), BEA quarterly
 or annual surveys (supplemented
 by data from other sources).
 Adjusted for the balance-of-
 payments coverage of U.S.
 territories and Puerto Rico
 (see the above entry); adjusted
 to include financial services
 furnished without payment (see
 the entry for banks, credit
 agencies, and investment
 companies under net interest
 miscellaneous payments).

Government consumption expenditures and gross investment
 ($2,523.0 billion)

 Federal Government ($932.5 billion)

 National defense except Within a control total established
 consumption of general by fiscal year analysis: For
 government fixed capital compensation, military wages
 ($552.0 billion) from OMB's Budget of the United
 States, civilian wages and
 benefits from the Office of
 Personnel Management (OPM), and
 employer contributions for
 Federal employee retirement
 plans from outlays from the
 Monthly Treasury Statement; for
 other than compensation by type,
 based mainly on data from
 Department of Defense (DOD)
 reports; for software, see the
 entry for software under
 nonresidential equipment and
 software.

 National defense Perpetual-inventory calculations
 consumption of general at current cost, based on gross
 government fixed capital investment and on investment
 ($72.3 billion) prices.

 Nondefense except Within a control total established
 consumption of general by fiscal year analysis: For CCC
 government fixed capital inventory change, book values of
 ($281.1 billion) acquisitions and physical
 quantities of dispositions from
 agency reports times average
 market prices from USDA; for
 compensation, civilian wages and
 benefits from OPM and employer
 contributions for Federal
 employee retirement plans from
 outlays from the Monthly Treasury
 Statement; for petroleum sales
 (Naval Petroleum Reserve),
 distribution and price data from
 the Department of Energy; for
 research and development,
 obligations from the National
 Science Foundation and
 disbursements from the National
 Aeronautics and Space
 Administration; for construction,
 value put in place from Census
 Bureau monthly construction
 survey; for software, see the
 entry for software under
 nonresidential equipment and
 software; for all others,
 outlays from the Monthly
 Treasury Statement. For financial
 services furnished without
 payment, see the entry for
 banks, credit agencies, and
 investment companies under net
 interest and miscellaneous
 payments.

 Nondefense consumption Perpetual-inventory calculations
 of general government at current cost, based on gross
 fixed capital ($27.1 investment and on investment
 billion) prices.

 State and local government ($1,590.5 billion)

 Consumption expenditures All years except the 3 most recent
 and gross investment years. Total expenditures from
 except those items listed Census Bureau quinquennial census
 below ($262.4 billion) and annual surveys of state and
 local governments, selectively
 replaced with source data that
 are more appropriate for the
 NIPAs and adjusted as follows:
 For coverage; for netting and
 grossing differences; to a
 calendar year basis from a fiscal
 year basis; for other timing
 differences; to exclude items
 not directly included in GDP
 (interest, subsidies, net
 expenditures of government
 enterprises, and transfer
 payments); and to exclude items
 described below.
 The 3 most recent years.
 Judgmental trend.

 Compensation of general For wages and salaries, BLS
 government employees tabulations from the QCEW for
 ($918.7 billion) employer contributions for
 government social insurance,
 tabulations from the Social
 Security Administration and
 other agencies administering
 social insurance programs; for
 employer contributions for
 employee pension and insurance
 funds, data from trade sources,
 Centers for Medicare and Medicaid
 Services, Census Bureau annual
 surveys of state and local
 government retirement funds,
 adjusted to a calendar year
 basis from a fiscal year basis,
 and Census Bureau annual surveys
 of state and local governments,
 adjusted to a calendar year
 basis from a fiscal year basis.

 Consumption of general Perpetual-inventory calculations at
 government fixed capital current cost, based on gross
 ($124.2 billion) investment and on investment
 prices.

 Structures ($260.5 billion) Value of construction put in place
 from Census Bureau monthly
 construction survey.

 Software ($11.8 billion) See the entry for software under
 nonresidential equipment and
 software.

 Brokerage charges and See the entries for brokerage
 financial services charges and financial services
 furnished without furnished without payment under
 payment ($12.9 billion) personal consumption
 expenditures.

 Gross domestic income of $13,212.8 billion for 2006

Compensation of employees, paid ($7,454.8 billion) (5)

 Wage and salary accruals ($6,032.2 billion)

 Private industries For most industries, BLS
 ($5,011.6 billion) tabulations from the QCEW; for
 others, wages from a variety of
 sources (such as USDA for farms
 and the Railroad Retirement Board
 for railroad transportation),
 adjusted for understatement of
 income on tax returns and for
 coverage differences.

 Federal Government For civilians, wages from BLS
 ($270.4 billion) tabulations from the QCEW; for
 military personnel, wages from
 OMB's Budget of the United
 States.

 State and local BLS tabulations from the QCEW.
 governments ($750.2
 billion)

 Employer contributions for employee pension and insurance funds
 ($970.7 billion)

 Group health insurance All years except the 2 most recent
 ($537.0 billion) years. For private and state and
 local governments, total
 contributions from the Centers
 for Medicare and Medicaid
 Services (CMS) less employee
 contributions from BLS consumer
 expenditure survey.
 The 2nd most recent year. For
 private, preliminary CMS
 tabulations; for state and local
 governments, judgmental trend.
 Most recent year. Judgmental trend.

 Private pension and profit- All years except the 2 most recent.
 sharing funds ($189.7 Tabulations from the Department
 billion) of Labor.
 The 2 most recent years.
 Tabulations from the Pension
 Benefit Guaranty Corporation and
 corporate financial data.

 Government employee All years except the most recent
 retirement plans ($170.8 year. For Federal plans, outlays
 billion) from the Monthly Treasury
 Statement, for state and local
 government plans, Census Bureau
 annual surveys of state and local
 government retirement funds,
 adjusted to a calendar year basis
 from a fiscal year basis.
 Most recent year. For Federal
 plans, same as all years except
 the most recent; for state and
 local government plans, Census
 Bureau annual surveys of state
 retirement funds, adjusted to a
 calendar year basis from a fiscal
 year basis.

 Workers' compensation All years except the most recent
 ($56.1 billion) year. Employer contributions
 from trade sources.
 Most recent year. Judgmental trend.

 Group life insurance ($15.4 All years except the most recent
 billion) year. Group premiums and
 estimates of employer share from
 trade sources.
 Most recent year. Judgmental trend.

 Employer contributions for Tabulations from the Social
 government social Security Administration and
 insurance ($451.8 billion) other agencies administering
 social insurance programs.

Taxes on production and imports ($967.3 billion)

 Federal Government ($98.6 For excise taxes, collections from
 billion) the Office of Tax Analysis, from
 the Bureau of Alcohol, Tobacco,
 Firearms and Explosives, and
 from the IRS; for customs duties,
 receipts from the Monthly
 Treasury Statement.

 State and local governments Receipts from Census Bureau
 ($868.8 billion) quinquennial census and annual
 surveys, adjusted to a calendar
 year basis from a fiscal year
 basis.

Less: Subsidies ($49.7 billion)

 Federal Government ($49.4 Payments by the CCC from agency
 billion) reports and, for most other
 agencies, outlays from the
 Monthly Treasury Statement.

 State and local governments For railroad and electric power,
 ($0.4 billion) Census Bureau annual surveys of
 expenditures adjusted to a
 calendar year basis from a fiscal
 year basis and California
 administrative records.

Net operating surplus ($3,225.3 billion)

 Private enterprises ($3,239.2 billion)

 Net interest and miscellaneous payments ($791.3 billion) (6)

 Domestic monetary All years except the most recent
 interest, net ($320.0 year. For farm interest paid,
 billion) USDA surveys; for residential
 mortgage interest paid, Census
 Bureau decennial survey of
 residential finance and mortgage
 debt from FRB times a BEA
 interest rate; for most other
 interest paid and received by
 business, IRS tabulations of
 business tax returns, adjusted
 for misreporting on tax returns
 and for conceptual differences.
 Most recent year. For farm and
 mortgage interest paid, same as
 all years except the most recent;
 for other interest, interest
 receipts and payments from
 regulatory agencies (such as the
 Federal Deposit Insurance
 Corporation), from trade sources,
 or derived by applying BEA
 interest rates to interest-
 bearing assets/liabilities from
 FRB flow-of-funds accounts.

 Domestic imputed interest, net ($452.9 billion)

 Banks, credit agencies,
 and investment
 companies ($229.6
 billion)

 Depositor services For commercial banks, data from FRB
 ($197.7 billion) tabulations of Federal Financial
 Examination Council Call Reports
 used to calculate the interest
 rate spread between a risk-free
 reference rate and the average
 interest rate paid to depositors
 times the average balance of
 deposits. Depositor services
 allocated to persons, government,
 and to the rest of the world on
 the basis of deposit liabilities
 from FRB.
 For credit agencies and investment
 companies, property income
 earned on investment of deposits
 less monetary interest paid to
 depositors (and for mutual
 depositories, profits from IRS
 tabulations of business tax
 returns) from annual reports of
 regulatory agencies and FRB.
 Depositor services allocated to
 persons, government, and
 to the rest of the world on the
 basis of deposit liabilities
 from FRB.

 Borrower services For commercial banks, data from FRB
 ($32.0 billion) tabulations of Federal Financial
 Examination Council Call Reports
 used to calculate the interest
 rate spread between the average
 rate paid by borrowers and the
 reference rate times the average
 balance of borrowers.

 Life insurance carriers Property income earned on investment
 ($213.8 billion) of policyholders' reserves from
 trade source.

 Property and casualty Expected investment income derived
 insurance companies using incurred losses and
 ($9.4 billion) investment gains from trade
 source.

Business current transfer payments (net) ($90.2 billion)

 To persons (net) ($27.2 All years except the most recent
 billion) year. Payments to persons for
 charitable contributions, IRS
 tabulations of business tax
 returns; for other components
 (such as liability payments for
 personal injury and net insurance
 settlements), information from
 government agency reports and
 trade sources.
 Most recent year. Judgmental trend.

 To government (net) For Federal, receipts from OMB's
 ($60.6 billion) Budget of the United States; for
 state and local, receipts from
 Census Bureau quinquennial census
 and annual surveys, adjusted to
 a calendar year basis from a
 fiscal year basis and net
 insurance settlements, as
 described above.

 To the rest of the world Estimated as part of the
 (net) ($2.5 billion) international transactions
 accounts.

Proprietors' income with inventory valuation adjustment (IVA)
 and capital consumption adjustment (CCAdj) ($1,006.7 billion)

 Farm proprietors' income USDA data on net income, obtained
 with IVA ($26.4 billion) by deriving gross income (cash
 receipts from marketing,
 inventory change, government
 payments, other cash income, and
 nonmoney income) and subtracting
 production expenses, adjusted to
 exclude corporate income based
 on USDA quinquennial census and
 annual survey data.

 Farm proprietors' income See the entry "Less: Capital
 with CCAdj consumption adjustment" under
 (-$7.0 billion) consumption of fixed capital.

 Nonfarm proprietors' All years except the most recent
 income ($888.8 billion) year. Income from IRS tabulations
 of business tax returns, adjusted
 for understatement of income on
 tax returns and for conceptual
 differences.
 Most recent year. For construction,
 trade, and services, indicators
 of activity (such as value of
 housing put in place); for most
 others, judgmental trend.

 Nonfarm proprietors' See the entry for inventory
 income with IVA (-$4.0 valuation adjustment under
 billion) corporate profits.

 Nonfarm proprietors' See the entry "Less: Capital
 income with CCAdj consumption adjustment" under
 ($102.6 billion) consumption of fixed capital.

Rental income of persons with capital consumption adjustment
 ($54.5 billion)

 Owner-occupied nonfarm Benchmark years. Derived as space
 housing ($1.1 billion) rent (see the entry for nonfarm
 dwellings under personal
 consumption expenditures) less
 related expenses, including
 property insurance from trade
 source and mortgage interest and
 property taxes from Census Bureau
 decennial survey of residential
 finance.
 Other years. Same as benchmark
 years, except mortgage interest,
 based on mortgage debt from FRB
 times a BEA interest rate, and
 property taxes from Census Bureau
 annual surveys of state and local
 tax collections.

 Tenant-occupied nonfarm Same as owner-occupied nonfarm
 housing ($18.7 billion) housing, adjusted to cover only
 rental income accruing to persons
 not primarily engaged in the real
 estate business from Census
 Bureau decennial survey of
 residential finance.

 Farm housing ($9.3 Benchmark years. Owner- and tenant-
 billion) occupied housing derived as space
 rent (see the entry for farm
 dwellings under personal
 consumption expenditures) less
 related expenses, such as
 mortgage interest and property
 taxes, from USDA. Farms owned by
 nonoperator landlords derived
 from USDA data.
 Other years. Space rent (see the
 entry for farm dwellings under
 personal consumption
 expenditures); expenses from USDA
 data. Farms owned by nonoperator
 landlords derived from USDA data.

 Nonfarm nonresidential Benchmark years. Nonfarm
 properties ($0.2 billion) nonresidential fixed assets from
 BEA capital stock series times a
 rate of return on capital based
 on IRS tabulations of business
 tax returns.
 Other years. BEA capital stock
 series and judgmental trend.

 Royalties ($25.1 billion) All years except the most recent
 year. IRS tabulations of
 royalties reported on individual
 income tax returns.
 Most recent year. Judgmental trend.

Corporate profits with inventory valuation adjustment (IVA)
 and capital consumption adjustment (CCAdj) (1,296.4 billion)

 Domestic profits before All years except the most recent
 tax ($1,548.5 billion) year. Receipts less deductions
 from IRS tabulations of business
 tax returns, adjusted for
 understatement of income on tax
 returns and for conceptual
 differences.
 Most recent year. Profits from
 Census Bureau Quarterly Financial
 Report, regulatory agency
 reports, and compilations of
 publicly available corporate
 financial statements.

 Inventory valuation The IVA on the income side (for
 adjustment (IVA) corporations and for nonfarm sole
 (-$36.3 billion) proprietorships and partnerships)
 and the IVA on the product side
 (see the entry "Change in private
 inventories") differ because the
 source data reflect different
 proportions of inventories
 reported using different
 accounting methods (last-in-first
 out (LIFO)). The income-side IVA
 is based on the product-side IVA,
 adjusted by the relationship
 between non-LIFO inventories from
 IRS tabulations of business tax
 returns and non-LIFO inventories
 from the Census Bureau.

 Capital consumption See the entry "Less: Capital
 adjustment (CCAdj) consumption adjustment" under
 (-$215.8 billion) consumption of fixed capital.

Current surplus of government enterprises (-$13.9 billion)

 Federal Government Mainly reports of various agencies,
 (-$3.2 billion) such as the Postal Service, and
 consumption of fixed capital
 (CFC) estimates derived with
 perpetual-inventory calculations
 at current cost, based on gross
 investment and on investment
 prices.

 State and local For current operating receipts,
 governments (-$10.7 mainly revenue data from Census
 billion) Bureau annual surveys of state
 and local governments, adjusted
 to a calendar year basis from a
 fiscal year basis; for current
 operating expenditures, see the
 entries for "Consumption
 expenditures and gross
 investment" and "Consumption of
 general government fixed capital"
 under state and local government.

Consumption of fixed capital ($1,615.2 billion)

 Government ($267.7 billion)

 General government Perpetual-inventory method, based
 ($223.6 billion) on gross investment and on
 investment prices.

 Government enterprises Perpetual-inventory method, based
 ($44.1 billion) on gross investment and on
 investment prices.

 Private ($1,347.5 billion)
 Domestic business Perpetual-inventory method, based
 ($1,081.4 billion) on gross investment and on
 investment prices.

 Capital consumption All years except the most recent
 allowances ($945.2 year. For depreciation of
 billion) corporations and of nonfarm sole
 proprietorships and partnerships,
 IRS tabulations of business tax
 returns, adjusted for conceptual
 differences; for other
 depreciation (including farm
 proprietorships and partnerships
 and other private business),
 perpetual-inventory calculations
 based on investment at
 acquisition cost; for accidental
 damage to fixed capital, losses
 reported to insurance companies
 and to government agencies.
 Most recent year. For depreciation
 of corporations and of nonfarm
 sole proprietorships and
 partnerships, BEA estimates of
 tax-return-based depreciation;
 for other depreciation and
 accidental damage to fixed
 capital, same as above.

 Less: Capital The difference between capital
 consumption consumption allowances and
 adjustment (-$136.1 consumption of fixed capital.
 billion)

 Households and Perpetual-inventory method, based
 institutions ($266.1 on gross investment and on
 billion) investment prices.

 Component Advance quarterly estimates:
 Source data and methods used
 to prepare an extrapolator

 Gross domestic product of $13,194.7 billion for 2006

Personal consumption expenditures ($9,224.5 billion)

 Durable and nondurable goods ($3,737.0 billion) (1)

 Most durable and Same as the annual estimates
 nondurable goods except for other years.
 those listed below
 ($3,040.2 billion) (2)

 New autos ($107.1 billion) Same as the annual estimates
 for other years.

 Net purchases of used For net transactions,
 autos and used light extrapolated by retail sales
 trucks ($117.9 billion) of used vehicle dealers from
 Census Bureau monthly
 survey of retail trade. For
 dealers' margin, judgmental
 trend.

 New light trucks (including Same as the annual estimate
 utility vehicles) ($134.1 for other years.
 billion)

 Gasoline and oil ($318.6 Same as the annual estimate
 billion) (2) for the most recent year.

 Food furnished to For commercial employees,
 employees (including same as the annual estimates
 military) ($13.8 billion) for other years; for military
 personnel, judgmental trend.

 Expenditures abroad by Judgmental trend.
 U.S. residents ($8.0
 billion) less personal
 remittances in kind to
 nonresidents ($2.7 billion)

Services ($5,487.6 billion)

 Nonfarm dwellings: Space For housing stock, judgmental
 rent for owner-occupied trend; for average rent, BLS
 dwellings and rent for CPI for rent.
 tenant-occupied
 dwellings ($1,291.5
 billion)

 Rental value of farm Judgmental trend.
 dwellings ($14.8 billion)

 Motor vehicle repair, rental, For nursing homes, research
 and other services; other organizations and
 repair services; other foundations, employment
 purchased intercity agency fees, and clubs and
 transportation; legal and fraternal organizations, wages
 funeral services; barber- and salaries derived from BLS
 shops, beauty parlors, monthly employment times
 and health clubs; nursing earnings times hours; for
 homes; laundries; commercial business, trade,
 employment agency fees; and correspondence schools,
 accounting and tax return and for education services not
 preparation services; elsewhere classified,
 recreation (except cable employment times BLS CPI
 TV, parimutuel net for technical and business
 receipts, lotteries, and school tuition and fees; for
 computer online legitimate theaters and motion
 services); hotels and pictures, receipts from trade
 motels; commercial sources; for radio and TV
 business, trade, and repair, number of TVs based
 correspondence schools; on stock and sales from trade
 educational services not source times BLS CPI for
 elsewhere classified; video and audio; for hotels
 research organizations and motels, rooms rented
 and foundations ($944.7 times average price per room
 billion) from trade source; for casino
 gambling, receipts from state
 agencies; for others in this
 group, judgmental trend.

 Physicians, dentists, home For home health care, wages
 health care, medical and salaries derived from BLS
 laboratories, eye monthly employment times
 examinations, all other earnings times hours; for
 professional medical others in this group,
 services ($702.8 billion) judgmental trend.

 Private nursery schools, For political organizations and
 elementary and foundations, judgmental trend;
 secondary schools, day for elementary and secondary
 care, museums and schools, employment times
 libraries, welfare BLS CPI for all items less food
 activities, political and energy; for others in this
 organizations, group, wages and salaries
 foundations, and trade derived from BLS monthly
 unions and professional employment times earnings
 associations ($249.7 times hours.
 billion)

 Financial services Judgmental trend.
 furnished without
 payment by banks, other
 depository institutions,
 and investment
 companies ($208.5
 billion) (3)

 Brokerage charges and For stock brokerage charges,
 investment counseling, stock exchange transactions
 bank service charges, from trade sources; for income
 intercity transportation from sales of investment
 except "other," and company securities, sales of
 private higher education open-end investment company
 ($319.6 billion) shares from trade source; for
 imputed commissions on debt
 securities, dealer transactions
 in U.S. government and agency
 securities from Federal
 Reserve Bank of New York; for
 commodities commissions,
 futures contracts from trade
 source; for investment
 counseling, wages and salaries
 derived from BLS monthly
 employment times earnings
 times hours; for other
 brokerage charges and investment
 counseling and for bank
 service charges, judgmental
 trend; for intercity
 transportation, receipts from
 trade sources; for private higher
 education, employment times
 BLS CPI for all items less food
 and energy.

 Domestic service ($20.7 Judgmental trend.
 billion)

 Public education and Judgmental trend.
 hospitals, water and
 other sanitary services,
 and lotteries ($280.5
 billion)

 Insurance, private For life insurance and private
 hospitals, religious hospitals, wages and salaries
 activities, cable TV, derived from BLS monthly
 electricity, natural gas, employment times earnings
 telephone, and local times hours; for cable TV,
 transport ($1,310.1 number of cable TV and direct
 billion) broadcast satellite subscribers
 from trade source; for
 electricity and gas, projected
 quantities based on degree-day
 data from the National
 Oceanic and Atmospheric
 Administration times prices
 based on BLS CPIs for
 electricity and gas; for
 cellular telephone, number of
 subscribers from trade source
 times BLS CPI for cellular
 telephone service; for others
 in this group, judgmental
 trend.

 Foreign travel by U.S. Same as the annual estimates.
 residents ($108.7 billion)
 less expenditures in the
 United States by non-
 residents ($109.9 billion)

 Other services: Motor For motor vehicle leasing,
 vehicle leasing; parimutuel number of leased vehicles
 net receipts; other housing based on registrations and
 except hotels and motels; terms from trade source, and
 bridge, etc. tolls; other lease payments based on
 household operation new vehicle prices, BEA
 except repairs and depreciation schedules, and
 insurance; travel and Federal Reserve Board
 entertainment card fees; (FRB) interest rates on new
 stenographic and motor vehicle loans; for
 reproduction services; others in this group,
 money orders and judgmental trend.
 classified advertising; and
 computer online services
 ($145.8 billion)

Fixed investment ($2,162.5 billion)

 Nonresidential structures ($405.1 billion)

 Commercial and health care Same as the annual estimates
 ($154.0 billion) for other years.

 Manufacturing ($26.8 billion) Same as the annual estimates.

 Power and communication Same as the annual estimates.
 ($47.3 billion)

 Mining exploration, shafts, For petroleum and natural gas,
 and wells ($105.4 billion) same as the annual estimate
 for the most recent year; for
 mining, judgmental trend.

 Other structures ($71.7 Same as the annual estimates
 billion) for other years.

 Nonresidential equipment and software ($992.6 billion)

 Equipment except new Same as the annual estimates
 autos, new light trucks, for other years but with less
 and net purchases of used detail.
 autos and used light trucks
 ($680.5 billion)

 New autos, new light trucks, See the entries under personal
 and net purchases of used consumption expenditures.
 autos and used light trucks
 ($108.8 billion)

 Software ($203.3 billion) For purchased software,
 receipts from company reports
 to the Securities and
 Exchange Commission; for
 own-account software, private
 fixed investment in computers
 and peripheral equipment.

 Residential investment ($764.8 billion) (4)

 Permanent-site new single- Same as the annual estimates.
 family housing units
 ($416.0 billion)

 Permanent-site new multi- Same as the annual estimates.
 family housing units
 ($53.0 billion)

 Manufactured homes ($7.4 Same as the annual estimates
 billion) for other years.

 Improvements ($178.5 Judgmental trend.
 billion)

 Brokers' commissions Same as the annual estimates.
 ($101.5 billion)

 Equipment ($9.6 billion) Same as the annual estimates.

Change in private inventories ($46.7 billion)

 Manufacturing and trade Same as the annual estimate
 ($38.1 billion) for the most recent year.

 Mining, utilities, For electric utilities, same as
 construction, and other the annual estimate for the
 nonfarm industries most recent year; for all
 ($9.7 billion) others, judgmental trend.

 Farm (-$1.2 billion) For crops, BEA quarterly
 allocation of USDA annual
 projections of crop output and
 cash receipts; for livestock,
 USDA quarterly data.

Net exports of goods and services (-$762.0 billion)

 Exports and imports of For territorial adjustment,
 goods, net (850.0 billion) Census Bureau foreign trade
 data and judgmental trend; for
 gold, judgmental trend; for all
 others, same as the annual
 estimates.

 Exports and imports of For territorial adjustment,
 services, net ($88.0 billion) judgmental trend; for all
 others, same as the annual
 estimates.

Government consumption expenditures and gross investment
 ($2,523.0 billion)

 Federal Government ($932.5 billion)

 National defense except For components of
 consumption of general compensation, military
 government fixed capital employment from DOD and
 ($552.0 billion) civilian employment from BLS;
 for other than compensation,
 same as the annual estimates;
 for software, see the entry for
 software under nonresidential
 equipment and software.

 National defense Same as the annual estimates.
 consumption of general
 government fixed capital
 ($72.3 billion)

 Nondefense except For components of
 consumption of general compensation, employment
 government fixed capital from BLS; for software, see
 ($281.1 billion) the entry for software under
 nonresidential equipment and
 software; for other than
 compensation and software,
 same as the annual estimates.

 Nondefense consumption Same as the annual estimates.
 of general government
 fixed capital ($27.1
 billion)

 State and local government ($1,590.5 billion)

 Consumption expenditures Judgmental trend.
 and gross investment
 except those items listed
 below ($262.4 billion)

 Compensation of general For wages and salaries, derived
 government employees from BLS monthly
 ($918.7 billion) employment times earnings
 from BLS employment cost
 index; for other compensation,
 judgmental trend.

 Consumption of general Same as the annual estimates.
 government fixed capital
 ($124.2 billion)

 Structures ($260.5 billion) Same as the annual estimates

 Software ($11.8 billion) Same as the annual estimates

 Brokerage charges and Same as the annual estimates.
 financial services
 furnished without
 payment ($12.9 billion)

 Gross domestic income of $13,212.8 billion for 2006

Compensation of employees, paid ($7,454.8 billion) (5)

 Wage and salary accruals ($6,032.2 billion)

 Private industries For most industries, wages and
 ($5,011.6 billion) salaries derived from BLS
 monthly employment times
 earnings times hours; for
 others, judgmental trend.

 Federal Government For civilians, employment from
 ($270.4 billion) BLS and judgmental trend; for
 military personnel, DOD
 employment and judgmental
 trend.

 State and local Derived from BLS monthly
 governments ($750.2 employment times earnings
 billion) from BLS employment cost
 index.

 Employer contributions for employee pension and insurance funds
 ($970.7 billion)

 Group health insurance Judgmental trend.
 ($537.0 billion)

 Private pension and profit- Judgmental trend.
 sharing funds ($189.7
 billion)

 Government employee For Federal plans, same as the
 retirement plans ($170.8 annual estimate for the most
 billion) recent year; for state and
 local government plans,
 judgmental trend.

 Workers' compensation Judgmental trend.
 ($56.1 billion)

 Group life insurance Judgmental trend.
 ($15.4 billion)

 Employer contributions for For Federal programs, BEA-
 government social derived wages and salaries of
 insurance ($451.8 billion) employees covered by the
 programs; for state and local
 government programs,
 judgmental trend.

Taxes on production and imports ($967.3 billion)

 Federal Government ($98.6 For customs duties, receipts
 billion) from the Monthly Treasury
 Statement, for most excise
 taxes, derived from indicators
 of activity (such as gasoline
 production for gasoline tax);
 for others, judgmental trend.

 State and local governments Judgmental trend.
 ($868.8 billion)

Less: Subsidies ($49.7 billion)

 Federal Government ($49.4 CCC reports and judgmental
 billion) trend.

 State and local governments Judgmental trend and California
 ($0.4 billion) administrative records.

Net operating surplus ($3,225.3 billion)

 Private enterprises ($3,239.2 billion)

 Net interest and miscellaneous payments ($791.3 billion) (6)

 Domestic monetary Derived by combining estimates
 interest, net ($320.0 of (1) interest received by
 billion) persons, (2) government
 interest paid less received,
 and (3) interest paid by
 persons. For (1), judgmental
 trend; for (2), data from the
 Monthly Treasury Statement
 and the Bureau of the Public
 Debt for Federal and
 judgmental trend for state and
 local; and for (3), consumer
 debt from FRB times BEA
 estimates of interest rates.

 Domestic imputed interest, net ($452.9 billion)

 Banks, credit agencies,
 and investment
 companies ($229.6
 billion)

 Depositor services Judgmental trend.
 ($197.7 billion)

 Borrower services Judgmental trend.
 ($32.0 billion)

 Life insurance carriers Judgmental trend.
 ($213.8 billion)

 Property and casualty Judgmental trend.
 insurance companies
 ($9.4 billion)

Business current transfer payments (net) ($90.2 billion)

 To persons (net) ($27.2 Judgmental trend.
 billion)

 To government (net) Judgmental trend.
 ($60.6 billion)

 To the rest of the world Same as the annual estimates.
 (net) ($2.5 billion)

Proprietors' income with inventory valuation adjustment (IVA)
 and capital consumption adjustment (CCAdj) ($1,006.7 billion)

 Farm proprietors' income For crops, BEA quarterly
 with IVA ($26.4 billion) allocation of USDA annual
 projections of crop output; for
 livestock, USDA quarterly
 projections of cash receipts
 and inventories; for both crops
 and livestock, quarterly
 allocation of USDA annual
 projections of government
 subsidy payments and
 production expenses.

 Farm proprietors' income
 with CCAdj
 (-$7.0 billion)

 Nonfarm proprietors' Same as the annual estimate
 income ($888.8 billion) for the most recent year.

 Nonfarm proprietors'
 income with IVA (-$4.0
 billion)

 Nonfarm proprietors'
 income with CCAdj
 ($102.6 billion)

Rental income of persons with capital consumption adjustment
 ($54.5 billion)

 Owner-occupied nonfarm For owner-occupied space rent,
 housing ($1.1 billion) same as the annual estimates;
 for depreciation, interest,
 closing costs, real estate
 dealers' commissions, and
 taxes, based on NIPA
 estimates of those
 components; for other
 expenses, judgmental trend.

 Tenant-occupied nonfarm Same as owner-occupied
 housing ($18.7 billion) nonfarm housing.

 Farm housing ($9.3 Judgmental trend.
 billion)

 Nonfarm nonresidential Judgmental trend.
 properties ($0.2 billion)

 Royalties ($25.1 billion) Judgmental trend.

Corporate profits with inventory valuation adjustment (IVA)
 and capital consumption adjustment (CCAdj) (1,296.4 billion)

 Domestic profits before For some industries in
 tax ($1,548.5 billion) transportation and in finance,
 judgmental trend; for others,
 same as the annual estimates
 for the most recent year.
 (Released with the preliminary
 estimate of GDP for the first,
 second, and third quarters
 and the final estimate for the
 fourth quarter.)

 Inventory valuation Same as the annual estimates.
 adjustment (IVA)
 (-$36.3 billion)

 Capital consumption
 adjustment (CCAdj)
 (-$215.8 billion)

Current surplus of government enterprises (-$13.9 billion)

 Federal Government Judgmental trend; for CFC
 (-$3.2 billion) estimates, the same as the
 annual estimates.

 State and local Judgmental trend.
 governments (-$10.7
 billion)

Consumption of fixed capital ($1,615.2 billion)

 Government ($267.7 billion)

 General government Same as the annual estimates.
 ($223.6 billion)

 Government enterprises Same as the annual estimates.
 ($44.1 billion)

 Private ($1,347.5 billion)
 Domestic business Same as the annual estimates.
 ($1,081.4 billion)

 Capital consumption Judgmental trend.
 allowances ($945.2
 billion)

 Less: Capital Same as the annual estimates.
 consumption
 adjustment (-$136.1
 billion)

 Households and Same as the annual estimates.
 institutions ($266.1
 billion)

NIPAs National income and product accounts

(1.) Personal consumption expenditures (PCE) for durable
and nondurable goods includes $0.9 billion for food produced
and consumed on farms and standard clothing issued to military
personnel.

(2.) The Census Bureau data for retail sales include sales
of gasoline service stations. The estimates of PCE for gasoline
and oil are derived from the sources listed and are deducted from
the retail-control estimates of most durable and nondurable goods.
diaries, except life insurance carriers."

(3.) This line item is also referred to as "services furnished
without payment by financial intermediaries, except life insurance
carriers."

(4.) Residential investment includes -$1.3 billion for dormitories
and net purchases of used structures.

(5.) Compensation of employees includes $1.7 billion
for supplemental unemployment.

(6.) Net interest and miscellaneous payments includes $18.4 billion
for government rents and royalties.

Table 2. Methodology Used in Preparing Estimates of Real GDP

 Deflation, using price based on
 Component
 CPI or PPI Other index

Personal consumption expenditures

 Durable and nondurable goods
 Most durable and CPI
 nondurable goods PPI, for military
 except those clothing
 listed below
 New autos CPI
 Net purchases of CPI, for net ...
 used autos and transactions
 used light trucks
 New trucks CPI
 Gasoline and oil CPI
 Food furnished to CPI
 employees
 (including
 military)
 Expenditures abroad ... Foreign CPIs (1)
 by U.S. residents
 less personal
 remittances in
 kind to
 nonresidents

 Services
 Nonfarm dwellings: CPI
 Space rent for
 owner-occupied
 dwellings and rent
 for tenant-
 occupied dwellings
 Rental value of ... ...
 farm dwellings
 Motor vehicle CPI Composite index of
 repair, rental, PPI, for proprietary input prices from
 and other and government the Centers for
 services; other nursing homes and Medicare and
 repair services; employment agency Medicaid Services
 other purchased fees for private
 intercity nonprofit nursing
 transportation; homes; for clubs
 legal and funeral and fraternal
 services; barber- organizations, and
 shops, beauty for nonprofit
 parlors, and research and
 health clubs; foundation
 nursing homes; expenses, BEA
 laundries; composite indexes
 employment agency of input prices.
 fees; accounting
 and tax return
 preparation
 services;
 recreation (except
 cable TV,
 parimutuel net
 receipts,
 lotteries, and
 computer online
 services); hotels
 and motels;
 commercial
 business, trade,
 and correspondence
 schools;
 educational
 services not
 elsewhere
 classified;
 research
 organizations and
 foundations
 Physicians, CPI
 dentists, and PPI, for physicians,
 other professional home health care,
 medical services and medical
 laboratories
 Private nursery ... BEA composite
 schools, indexes of input
 elementary and prices.
 secondary schools,
 day care, welfare
 activities,
 political
 organizations,
 foundations, and
 trade unions and
 professional
 associations
 Financial services PPI, for investment BEA composite index
 furnished without companies' of input prices,
 payment by banks, securities for investment
 other depository commissions companies' "total
 institutions, and deductions."
 investment
 companies (2)
 Brokerage charges CPI BEA index based on
 and investment PPI, for securities revenue per
 counseling, bank commissions passenger mile
 service charges, from DOT and trade
 intercity source for air
 transportation transportation;
 except "other," for private higher
 and private higher education, BEA
 education composite index of
 input prices.
 Domestic service CPI
 Public education CPI
 and hospitals, PPI, for public
 water and other hospitals
 sanitary services,
 and lotteries
 Insurance, private CPI BEA composite
 hospitals, PPI, for private indexes of input
 religious for-profit prices, for life
 activities, cable hospitals insurance and
 TV, electricity, religious
 natural gas, activities; for
 telephone, and private nonprofit
 local transport hospitals,
 composite index of
 input prices from
 the Centers for
 Medicare and
 Medicaid Services.
 Foreign travel by CPI, for BEA composite index
 U.S. residents expenditures in of foreign CPIs,
 less expenditures the United States (1) for foreign
 in the United travel; for
 States by airfares in
 nonresidents foreign travel,
 BLS import price
 index.
 Other services: CPI ...
 Motor vehicle
 leasing;
 parimutuel net
 receipts; other
 housing except
 hotels and motels;
 tolls; other
 household
 operation except
 repairs and
 insurance; travel
 and entertainment
 card fees;
 stenographic and
 reproduction
 services; money
 orders and
 classified
 advertising; and
 computer online
 services

Fixed investment
 Nonresidential
 structures
 Commercial and PPI, for warehouses BEA index based on
 health care and offices costs per square
 foot from trade
 source for
 commercial
 structures; for
 health care, BEA
 index based on
 cost index from
 trade source and
 on Census Bureau
 price deflator for
 single-family
 houses under
 construction.
 Manufacturing ... BEA index based on
 costs per square
 foot from trade
 source.
 Power and PPI, for power Cost indexes from
 communication excluding electric trade sources and
 government
 agencies, for
 power; for
 communication,
 cost index from
 trade source.
 Mining exploration, PPI, for casing, oil BEA index based on
 shafts, and wells and gas well cost index from
 drilling, and oil trade source and
 and gas field on Census Bureau
 services price deflator for
 single-family
 houses under
 construction, for
 mines.
 Other structures PPI, for brokers' BEA price index for
 commissions and railroads; for
 educational and other components,
 vocational BEA index based on
 structures cost index from
 trade source and
 on Census Bureau
 price deflator for
 single-family
 houses under
 construction.
 Nonresidential equipment and software
 Equipment except PPI, for most BLS import price
 those listed below domestic indexes, for
 components and for imported
 imported components except
 transportation transportation
 equipment equipment.
 New autos, new CPI, for new autos ...
 light trucks, and and new light
 net purchases of trucks
 used autos and
 used light trucks
 Telephone and ... BEA cost index
 telegraph
 installation
 Telephone switching ... BEA price index
 equipment
 Photocopying ... BEA price index
 equipment
 Software PPI, for prepackaged BEA cost index, BLS
 software employment cost
 index, and PPI,
 for own-account
 and custom
 software.
 Residential investment
 Permanent-site new ... Census Bureau price
 single-family deflator for
 housing units single-family
 houses under
 construction.
 Permanent-site new ... BEA price index
 multifamily
 housing units
 Manufactured homes PPI
 Improvements ... BEA composite index
 of input prices,
 for major
 replacements; for
 additions and
 alterations, BEA
 index based on
 Census Bureau
 price deflator for
 single-family
 houses under
 construction and
 BEA index for
 major
 replacements.
 Brokers' PPI
 commissions
 Equipment CPI

Change in private inventories
 Nonfarm
 Purchased goods of PPI Composite price from
 all industries the Energy
 Information
 Administration,
 for crude
 petroleum; BLS
 import price
 indexes, for
 imported goods
 purchased by trade
 industries.
 Work-in-process and PPI BEA indexes of unit
 finished goods, labor costs.
 manufacturing
 Farm ... USDA average market
 prices

Net exports of goods and services
 Exports and imports of PPI, for gold; semi- BLS export and
 goods conductor exports, import price
 selected indexes; for
 transportation electric energy
 equipment; exports and
 selected imports, and for
 agricultural petroleum imports,
 foods, feeds, and unit-value indexes
 beverages; and based on Census
 selected imports Bureau values and
 of refined quantities.
 petroleum
 Exports and imports of CPI, for travel Selected deflators,
 services receipts, medical for military
 receipts, and transfers and
 nonresident defense
 students' expenditures: see
 expenditures "National defense
 PPI, for selected except consumption
 other of general
 transportation government fixed
 capital" below.
 BLS export and
 import price
 indexes, for
 passenger fares;
 BEA composite
 index of foreign
 CPIs,' for travel
 payments, for
 miscellaneous
 services, and U.S.
 students'
 expenditures
 abroad; BLS
 exports and
 imports price
 indexes, for
 selected other
 transportation;
 and for royalties
 and fees, and
 other private
 services, BEA
 price indexes,
 CPI, PPI, and
 implicit price
 deflator for final
 sales to domestic
 purchasers.

Government consumption expenditures and gross investment

 Federal Government
 National defense PPI, for selected BEA indexes based on
 except consumption goods and services DOD prices paid,
 of general CPI and PPI, for for some goods and
 government fixed utilities and services and for
 capital communications most military
 structures; for
 some services, BLS
 employment cost
 indexes; for
 nonmilitary
 structures, cost
 indexes from trade
 sources and
 government
 agencies; for own-
 account software,
 BEA index derived
 from nondefense
 compensation; for
 custom software,
 BEA index derived
 from nondefense
 compensation price
 index and PPI.
 National defense
 consumption of
 general government
 fixed capital
 Nondefense except PPI, for most goods Cost indexes from
 consumption of and selected trade sources and
 general government services government
 fixed capital CPI, for rent, agencies, for
 utilities, and structures; for
 communications some services, BLS
 employment cost
 indexes; for own-
 account software,
 BEA index derived
 from nondefense
 compensation; for
 custom software,
 BEA index derived
 from nondefense
 compensation price
 index and PPI.
 Nondefense ... ...
 consumption of
 general government
 fixed capital
 State and local government
 Consumption CPI, for services BEA indexes based on
 expenditures and PPI, for Federal nondefense
 gross investment electricity, prices paid, for
 except those hospitals, most transportation,
 listed below professional books, and postal
 services, and services; for
 goods elementary and
 secondary
 education,
 welfare, and
 libraries, BEA
 composite indexes
 of input prices;
 for maintenance
 and repair
 services, BEA
 composite price
 index for state
 and local
 construction.
 Compensation of ... ...
 general government
 employees
 Consumption of ... ...
 general government
 fixed capital
 Structures ... Cost indexes from
 trade sources and
 government
 agencies.
 Software ... See the entry for
 software under
 nonresidential
 equipment and
 software.
 Brokerage charges ... ...
 and financial
 services furnished
 without payment

 Component Using quantity for
 extrapolation or direct valuation

Personal consumption expenditures

 Durable and nondurable goods
 Most durable and
 nondurable goods
 except those
 listed below
 New autos
 Net purchases of Direct valuation. For used autos
 used autos and and used light trucks margins, unit
 used light trucks sales from trade sources with
 dealers' margins from Census
 Bureau and trade sources.
 New trucks
 Gasoline and oil
 Food furnished to
 employees
 (including
 military)
 Expenditures abroad
 by U.S. residents
 less personal
 remittances in
 kind to
 nonresidents

 Services
 Nonfarm dwellings:
 Space rent for
 owner-occupied
 dwellings and rent
 for tenant-
 occupied dwellings
 Rental value of Quantity extrapolation. Real dollar
 farm dwellings net stock of farm housing from
 BEA capital stock estimates.
 Motor vehicle
 repair, rental,
 and other
 services; other
 repair services;
 other purchased
 intercity
 transportation;
 legal and funeral
 services; barber-
 shops, beauty
 parlors, and
 health clubs;
 nursing homes;
 laundries;
 employment agency
 fees; accounting
 and tax return
 preparation
 services;
 recreation (except
 cable TV,
 parimutuel net
 receipts,
 lotteries, and
 computer online
 services); hotels
 and motels;
 commercial
 business, trade,
 and correspondence
 schools;
 educational
 services not
 elsewhere
 classified;
 research
 organizations and
 foundations
 Physicians,
 dentists, and
 other professional
 medical services
 Private nursery
 schools,
 elementary and
 secondary schools,
 day care, welfare
 activities,
 political
 organizations,
 foundations, and
 trade unions and
 professional
 associations
 Financial services Quantity extrapolation. Banks, BLS
 furnished without index of total output (less BEA
 payment by banks, real bank service charges) times
 other depository consumer share based on shares
 institutions, and of deposits and loans; for other
 investment depository institutions, paid
 companies (2) employee hours of relevant
 financial institutions; for
 investment companies' "implicit
 charges," BEA orders derived
 from volume data from trade
 sources.
 Brokerage charges Quantity extrapolation. For mutual
 and investment fund sales charges, value of new
 counseling, bank sales deflated by CPI.
 service charges,
 intercity
 transportation
 except "other,"
 and private higher
 education
 Domestic service
 Public education
 and hospitals,
 water and other
 sanitary services,
 and lotteries
 Insurance, private Quantity extrapolation. For auto
 hospitals, insurance, premiums deflated by
 religious CPI; for medical care and
 activities, cable hospitalization insurance, benefits
 TV, electricity, deflated by PPI; for workers'
 natural gas, compensation, premiums deflated
 telephone, and by PPI.
 local transport
 Foreign travel by
 U.S. residents
 less expenditures
 in the United
 States by
 nonresidents
 Other services: Quantity extrapolation. For
 Motor vehicle parimutuel net receipts, gross
 leasing; winnings deflated by CPI.
 parimutuel net
 receipts; other
 housing except
 hotels and motels;
 tolls; other
 household
 operation except
 repairs and
 insurance; travel
 and entertainment
 card fees;
 stenographic and
 reproduction
 services; money
 orders and
 classified
 advertising; and
 computer online
 services
Fixed investment
 Nonresidential
 structures
 Commercial and
 health care
 Manufacturing
 Power and
 communication
 Mining exploration, Quantity extrapolation. For drilling,
 shafts, and wells footage by geographic area from
 trade source.
 Other structures
 Nonresidential equipment and software
 Equipment except
 those listed below
 New autos, new Direct valuation. For used autos
 light trucks, and and used light trucks, see the
 net purchases of entry "Net purchases of used
 used autos and autos and used light trucks" under
 used light trucks personal consumption
 expenditures.
 Telephone and
 telegraph
 installation
 Telephone switching
 equipment
 Photocopying
 equipment
 Software
 Residential investment
 Permanent-site new
 single-family
 housing units
 Permanent-site new
 multifamily
 housing units
 Manufactured homes
 Improvements
 Brokers'
 commissions
 Equipment

Change in private inventories
 Nonfarm
 Purchased goods of Direct valuation. Quantities and
 all industries prices of stocks of coal,
 petroleum, and natural gas for
 utilities from Energy Information
 Administration.
 Work-in-process and
 finished goods,
 manufacturing
 Farm

Net exports of goods and services
 Exports and imports of
 goods
 Exports and imports of Quantity extrapolation. For exports of
 services financial services furnished without
 payment, (2) BLS index of total bank
 output (less BEA real bank service
 charges); for exports and imports of
 insurance, premiums deflated by
 PPI.

Government consumption expenditures and gross investment

 Federal Government
 National defense Quantity extrapolation. For military
 except consumption compensation, full-time equivalent
 of general employment by rank and length of
 government fixed service; for civilian compensation,
 capital full-time equivalent employment by
 grade, adjusted for change from
 base year in hours worked.
 Direct valuation. For some goods and
 services and a few military
 structures, quantities and prices
 from DOD reports; for electricity and
 natural gas, quantities from DOE.
 National defense Direct valuation. Perpetual-inventory
 consumption of calculations based on gross
 general government investment.
 fixed capital
 Nondefense except Quantity extrapolation. For
 consumption of compensation, full-time equivalent
 general government employment by grade, adjusted for
 fixed capital change from base year in hours
 worked; for financial services
 furnished without payment 2 BLS
 index of total bank output (less BEA
 real bank service charges).
 Direct valuation. For net purchases of
 agricultural commodities by the
 Commodity Credit Corporation,
 quantities by crop from agency
 reports and USDA prices; for
 selected petroleum transactions,
 DOE quantities and prices.
 Nondefense Direct valuation. Perpetual-
 consumption of inventory calculations based on
 general government gross investment.
 fixed capital
 State and local government
 Consumption
 expenditures and
 gross investment
 except those
 listed below
 Compensation of Quantity extrapolation. For
 general government employees in education, full-time
 employees equivalent employment by
 education and experience,
 adjusted for change from base
 year in hours worked; for other
 employees, full-time equivalent
 employment, adjusted for change
 from base year in hours worked.
 Consumption of Direct valuation. Perpetual-
 general government inventory calculations based on
 fixed capital gross investment.
 Structures
 Software
 Brokerage charges Quantity extrapolation. See the
 and financial entries for brokerage charges and
 services furnished for financial services under
 without payment personal consumption
 expenditures.

BEA Bureau of Economic Analysis

BLS Bureau of Labor Statistics

CPI Consumer price index

DOD Department of Defense

DOE Department of Energy

DOT Department of Transportation

PPI Producer price index

USDA U.S. Department of Agriculture

(1.) The foreign CPIs have been adjusted for differences in exchange
rates.

(2.) This line item is also referred to as "services furnished without
payment by financial intermediaries, except life insurance carriers."
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Publication:Survey of Current Business
Geographic Code:1USA
Date:Nov 1, 2007
Words:11607
Previous Article:Newly available NIPA tables.
Next Article:Comparing the Consumer Price Index and the Personal Consumption expenditures price index.
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