GDP and the economy: second estimates for the first quarter of 2012.

Swann, Christopher

REAL GROSS domestic product (GDP) increased at an annual rate of 1.9 percent in the first quarter of 2012, according to the second estimates of the national income and product accounts (NIPAs) (chart 1 and table 1). (1) The second estimate of real GDP growth was revised down 0.3 percentage point from the advance estimate, reflecting a downward revision to inventory investment, an upward revision to imports, and downward revisions to state and local government spending and to consumer spending that were partly offset by upward revisions to nonresidential fixed investment and to exports. (2) In the fourth quarter of 2011, real GDP increased 3.0 percent.

* Prices of goods and services purchased by U.S. residents increased 2.4 percent in the first quarter, the same increase as in the advance estimate, after increasing 1.1 percent. Energy prices turned up, while food prices slowed. Excluding food and energy, gross domestic purchases prices increased 2.3 percent after increasing 1.2 percent. The pay raise for military personnel added less than 0.1 percentage point to the first-quarter change in the gross domestic purchases price index.

* Real disposable personal income (DPI) increased 0.4 percent, the same increase as in the advance estimate, after increasing 0.2 percent (revised) in the fourth quarter. In the first quarter, current-dollar DPI increased 2.9 percent, 0.1 percentage point more than in the advance estimate, after increasing 1.3 percent (revised) in the fourth quarter. The slight upward revision to first-quarter current-dollar DPI reflected a downward revision to personal current taxes that was partly offset by a downward revision to personal income.

* The personal saving rate, personal saving as a percentage of current-dollar DPI, was 3.6 percent, 0.3 percentage point less than in the advance estimate; in the fourth quarter, the rate was 4.2 percent (revised).

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Inventory Investment

The change in real private inventories, often called real private inventory investment, represents the change in the physical stock of goods held by businesses. It includes finished goods, goods at various stages of production, and raw materials.

The change in private inventories is a key component of gross domestic product (GDP), which aims to measure output derived from current production. To include the value of currently produced goods that are not yet sold and to exclude the value of goods produced in previous periods, the change in private inventories must be included in the GDP calculation.

Thus, GDP can also be seen as the sum of final sales of domestic product and the change in private inventories

(table 2).

For most industries, the estimates of change in private inventories are prepared by revaluing book-value estimates of inventories from the Census Bureau to a replacement-cost basis and calculating the change over a quarter or a year. BEA provides estimates for incomplete industry data.

BEA's First-Quarter Estimates of Defense Spending

The first-quarter decrease in national defense spending reflected decreases in compensation of employees (accompanying a drop in the number of active-duty military personnel), in purchases of goods and services, and in investment in defense equipment.

BEA's estimates are based on data for defense outlays from the Department of Treasury's Monthly Treasury Statement (MTS), which records cash outlays of the U.S. Government. However, BEA's national accounts record defense expenditures on an accrual basis in order to more closely match the flow of expenditures to the flow of economic activity. BEA routinely incorporates timing adjustments to convert MTS outlays to NIPA expenditures. As a result, there are occasions, such as the first quarter of 2012, when BEA's estimates of defense spending do not track defense outlays as recorded in the MTS.

For additional details on BEA's methodology and on the timing adjustments as they relate to the first-quarter estimates, see the April 27 blog post at blog.bea.gov/2012/04/ 27/defense-spending on BEA's Web site.

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, regardless of whether those goods and services were produced domestically or imported. It is derived from prices of consumer spending, private investment, and government spending.

The GDP price index measures the prices of goods and services produced in the United States, including the prices of goods and services produced for export.

The difference between the gross domestic purchases price index and the GDP price index reflects the differences between imports prices (included in the gross domestic purchases index) and exports prices (included in the GDP price index). For other measures that are affected by import and export prices, see the dollar depreciation FAQ Answer ID 498 on BEA's Web site.

Source Data for the Second Estimates

Personal consumption expenditures: retail sales for January, February, and March (revised). Motor vehicle registrations for March (new). Energy Information Administration data for retail electricity sales and unit value data for January (revised) and February (new), gasoline data for January (revised) and February (new), and natural gas sales and unit value data for January (revised) and February (new).

Nonresidential fixed investment: construction spending (value put in place) for January and February (revised) and March (new). Manufacturers' shipments (M3) of machinery and equipment for January and February (revised) and March (new). Exports and imports for January and February (revised) and March (new).

Residential fixed investment: construction spending for January and February (revised) and March (new).

Change in private inventories: manufacturers' inventories for January, February, and March (revised) and trade inventories for January and February (revised) and March (new).

Exports and imports: international transactions accounts for January and February (revised) and March (new).

Government consumption expenditures and gross investment: state and local construction spending for January and February (revised) and March (new).

Personal Income for the Fourth Quarter of 2011

With the release of the second estimates of GDP, BEA also releases revised estimates of various income-related measures for the previous quarter. This revision reflects the incorporation of newly available fourth-quarter tabulations from the Quarterly Census of Employment and Wages from the Bureau of Labor Statistics.

Wage and salary disbursements increased $28.9 billion, a downward revision of $60.2 billion. Personal current taxes increased $10.3 billion, a downward revision of $10.8 billion. Contributions for government social insurance, which is subtracted in calculating personal income, increased $3.9 billion, a downward revision of $8.2 billion.

As a result of these revisions,

* Personal income increased $48.9 billion, a downward revision of $56.4 billion.

* Disposable personal income increased $38.6 billion, a downward revision of $45.6 billion.

* Personal saving decreased $47.8 billion, a downward revision of $45.5 billion.

* The personal saving rate was 4.2 percent, a downward revision of 0.3 percentage point.

Measuring Corporate Profits

Corporate profits is a widely followed economic indicator used to gauge corporate health, assess investment conditions, and analyze the effect on corporations of economic policies and conditions. In addition, corporate profits is an important component in key measures of income.

BEA's measure of corporate profits aims to capture the income earned by corporations from current production in a manner that is fully consistent with the national income and product accounts (NIPAs). The measure is defined as receipts arising from current production less associated expenses. Receipts exclude income in the form of dividends and capital gains, and expenses exclude bad debts, natural resource depletion, and capital losses.

Because direct estimates of NIPA-consistent corporate profits are unavailable, BEA derives these estimates in three steps.

First, BEA measures profits before taxes to reflect corporate income regardless of any redistributions of income through taxes. Estimates for the current quarter are based on corporate earnings reports from sources including Census Bureau Quarterly Financial Reports, Federal Deposit Insurance Corporation call reports, other regulatory reports, and tabulations from corporate financial reports. The estimates are benchmarked to Internal Revenue Service data when the data are available for two reasons: the data are based on well-specified accounting definitions, and they are comprehensive, covering all incorporated businesses--publicly traded and privately held--in all industries.

Second, to remove the effects of price changes on inventories valued at historical cost and of tax accounting for inventory withdrawals, BEA adds an inventory valuation adjustment that values inventories at current cost.

Third, to remove the effects of tax accounting on depreciation, BEA adds a capital consumption adjustment (CCAdj). CCAdj is defined as the difference between capital consumption allowances (tax return depreciation) and consumption of fixed capital (the decline in the value of the stock of assets due to wear and tear, obsolescence, accidental damage, and aging).

(1.) "Real" estimates are in chained (2005) 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 "Revisions to GDP, GDI, and Their Major Components" in the July 2011 Survey of Current Business. Quarterly estimates are expressed at seasonally adjusted annual rates, which assumes that a rate of activity for a quarter is maintained for a year.

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

Consumer spending accelerated, adding 1.90 percentage points to real GDP growth after adding 1.47 percentage points. The acceleration reflected pickups in both services and goods.

Nonresidential fixed investment decelerated, adding 0.20 percentage point to real GDP growth after adding 0.53 percentage point. The deceleration reflected a deceleration in equipment and software and a larger decrease in structures (see page 4).

Residential investment picked up and added 0.41 percentage point to real GDP growth after adding 0.25 percentage point (see page 4).

Inventory investment slowed, adding 0.21 percentage point to real GDP growth after adding 1.81 percentage points. The slowdown primarily reflected downturns in manufacturing and in wholesale trade industries that were partly offset by an upturn in retail industries (see page 5).

Exports picked up, adding 0.98 percentage point to real GDP growth after adding 0.37 percentage point. The pickup reflected pickups in both exports of services and exports of goods (see page 6).

Imports also picked up, subtracting 1.05 percentage points from real GDP growth after subtracting 0.63 percentage point. The pickup reflected pickups in both imports of goods and of services (see page 6).

Government spending decreased less than in the fourth quarter, subtracting 0.78 percentage point from real GDP growth after subtracting 0.84 percentage point. The smaller decrease reflected a smaller decrease in federal government spending that more than offset a larger decrease in state and local government spending (see page 7).

Real final sales of domestic product, real GDP less inventory investment, increased 1.7 percent after increasing 1.1 percent.

Motor vehicle output accelerated sharply, increasing 51.1 percent after increasing 20.4 percent. The increase in motor vehicle output accounted for more than half of the first-quarter growth in real GDP.

Real gross domestic income, which measures the output of the economy as the costs incurred and the incomes earned in the production of GDP, increased 2.7 percent after increasing 2.6 percent.

Spending for durable goods slowed slightly. The slowdown mainly reflected a slowdown in spending for motor vehicles and parts that was partly offset by an upturn in spending for "other" durable goods.

Spending for nondurable goods picked up. The pickup primarily reflected an upturn in spending for food and beverages for off-premises consumption.

Spending for services accelerated. The acceleration primarily reflected an upturn in spending for financial services and insurance, but a smaller decrease in housing and utilities and an upturn in recreation services also contributed. In contrast, spending for "other" services decelerated.

Private fixed investment slowed, reflecting a slowdown in nonresidential fixed investment that was partly offset by a pickup in residential investment.

The slowdown in nonresidential fixed investment reflected a slowdown in equipment and software and a larger decrease in structures.

The larger decrease in structures reflected downturns in power and communication and in "other" structures and a deceleration in manufacturing that were partly offset by an upturn in commercial and health care and a smaller decrease in mining exploration, shafts, and wells.

The slowdown in equipment and software primarily reflected a downturn in industrial equipment and a slowdown in information processing equipment that were partly offset by an upturn in "other" equipment.

Residential investment picked up, reflecting pickups in single-family structures, in "other" structures, and in multifamily structures.

Real inventory investment decelerated in the first quarter, increasing $5.5 billion after increasing $54.2 billion in the fourth quarter. The slowdown mainly reflected downturns in both manufacturing industries and wholesale trade industries that were partly offset by an upturn in retail trade industries.

The downturn in manufacturing industries reflected downturns in both nondurable-goods and durable-goods industries. First-quarter inventory accumulations in both nondurable-goods and durable-goods industries were smaller than in the fourth quarter.

The downturn in wholesale trade industries reflected a downturn in nondurable-goods industries that primarily reflected a smaller inventory accumulation in merchant wholesale trade in the first quarter than in the fourth quarter after a drawdown in the third quarter. In contrast, durable-goods industries turned up.

The upturn in retail trade industries primarily reflected upturns in motor vehicle and parts dealers, in "other" retail stores, and in food and beverage stores.

Exports of goods and services accelerated in the first quarter of 2012, reflecting accelerations in both exports of services and exports of goods.

The acceleration in goods exports mainly reflected an upturn in automotive vehicles, engines, and parts and an acceleration in nonautomotive capital goods that were partly offset by downturns in industrial supplies and materials and in nonautomotive consumer goods.

The acceleration in exports of services mainly reflected upturns in travel services and in passenger fares.

Imports of goods and services accelerated, reflecting accelerations in both imports of goods and of services.

The acceleration in imports of goods mainly reflected upturns in automotive vehicles, engines, and parts and in nonpetroleum industrial supplies and materials that were partly offset by a downturn in petroleum and products.

The acceleration in imports of services mainly reflected an acceleration in travel services and an upturn in passenger fares. "Other" transportation and "other" private services also contributed.

Government spending decreased less in the first quarter of 2012 than in the fourth quarter. A smaller decrease in federal government spending was partly offset by a larger decrease in state and local government spending.

The smaller decrease in federal government spending reflected a smaller decrease in national defense spending that was partly offset by a downturn in nondefense spending. The smaller decrease in national defense spending was more than accounted for by a smaller decrease in consumption expenditures. The downturn in nondefense spending reflected a downturn in consumption expenditures that was partly offset by a smaller decrease in gross investment.

The larger decrease in state and local government spending reflected a downturn in gross investment, especially in structures, that was partly offset by a smaller decrease in consumption expenditures.

Prices of goods and services purchased by U.S. residents, as measured by the price index for gross domestic purchases, accelerated in the first quarter, increasing 2.4 percent after increasing 1.1 percent. The pay raise for military personnel added less than 0.1 percentage point to the first-quarter change in the gross domestic purchases price index.

Consumer prices accelerated, reflecting accelerations in both goods and services prices. Gasoline and other energy goods turned up and was the largest contributor to the acceleration in consumer prices. Pickups in food services and accommodations and in financial services and insurance also contributed.

Prices paid for residential investment turned down, the first downturn since the second quarter of 2010.

Prices paid by the federal government turned up, primarily reflecting an upturn in prices paid for national defense consumption expenditures; an acceleration in prices paid for nondefense consumption expenditures also contributed.

Prices paid by state and local governments accelerated, primarily reflecting an acceleration in prices paid for consumption expenditures.

Consumer prices excluding food and energy, a measure of the "core" rate of inflation, picked up.

The GDP price index increased 1.7 percent, 0.7 percentage point less than the increase in the price index for gross domestic purchases, reflecting a larger increase in import prices (7.7 percent) than in export prices (3.4 percent).

The second estimate of the first-quarter increase in real GDP is 0.3 percentage point less than the advance estimate, primarily reflecting a downward revision to inventory investment, an upward revision to imports, and downward revisions to state and local government spending and to consumer spending that were partly offset by upward revisions to nonresidential fixed investment and to exports. The average revision (without regard to sign) between the advance estimate and the second estimate is 0.5 percentage point.

The downward revision to consumer spending reflected small revisions to both services and goods.

The upward revision to nonresidential fixed investment reflected upward revisions to both structures and equipment and software.

The downward revision to inventory investment was mainly to manufacturing, to wholesale trade, and to retail trade; mining, utilities, and construction inventories were revised up.

The upward revision to exports was mainly to industrial supplies and materials, to civilian aircraft, engines, and parts, and to "other" goods; computers, peripherals, and parts was revised down.

The upward revision to imports was mainly nonautomotive consumer goods, computers, peripherals, and parts, and "other" nonautomotive capital goods; petroleum and products was revised down.

The downward revision to state and local government spending was primarily to gross investment in structures.

Profits from current production increased $11.4 billion, or 0.6 percent at a quarterly rate, in the first quarter after increasing $16.8 billion, or 0.9 percent, in the fourth quarter.

Domestic profits of financial corporations increased $20.6 billion, or 4.5 percent, after increasing $29.9 billion, or 7.0 percent.

Domestic profits of nonfinancial corporations increased $6.3 billion, or 0.6 percent, after increasing $28.4 billion, or 2.6 percent.

Profits from the rest of the world decreased $15.5 billion, or 3.8 percent, after decreasing $41.5 billion, or 9.2 percent. In the first quarter, receipts increased $3.5 billion and payments increased $19.0 billion.

Taxes on corporate income increased $75.8 billion, or 18.5 percent, after decreasing $0.7 billion, or 0.2 percent. About $50 billion of the increase reflected the effect of the expiration of "bonus depreciation" in 2011.

After-tax profits decreased $64.4 billion, or 4.1 percent, after increasing $17.5 billion, or 1.1 percent.

Undistributed corporate profits, a measure of net saving that equals after-tax profits less dividends, decreased $74.3 billion, or 10.0 percent, after increasing $7.2 billion, or 1.0 percent.

Net cash flow from current production, a profits-related measure of internal funds available for investment, decreased $98.4 billion, or 5.2 percent, after increasing $44.8 billion, or 2.4 percent.

Table 1. Real Gross Domestic Product and Components

[Seasonally adjusted at annual rates]

                               Share of               Change from
                               current-            preceding period
                                dollar                (percent)
                                  GDP
                               (percent)

                                 2012             2011           2012

                                   I        II    III     IV      I

    Gross domestic product
     (1)                           100.0    1.3    1.8     3.0    1.9
Personal consumption
  expenditures                      71.2    0.7    1.7     2.1    2.7

  Goods                             24.5   -1.6    1.4     5.4    6.1
    Durable goods                    8.0   -5.3    5.7    16.1   14.3
    Nondurable goods                16.5    0.2   -0.5     0.8    2.3
  Services                          46.7    1.9    1.9     0.4    1.0

Gross private domestic
  investment                        13.2    6.4    1.3    22.1    6.3
  Fixed investment                  12.7    9.2   13.0     6.3    4.9
    Nonresidential                  10.4   10.3   15.7     5.2    1.9
      Structures                     2.8   22.6   14.4    -0.9   -3.3
      Equipment and software         7.6    6.2   16.2     7.5    3.9
    Residential                      2.3    4.2    1.3    11.6   19.4
  Change in private
    inventories                      0.5    ...    ...     ...    ...

Net exports of goods
  and services                      -4.0
  Exports                           14.0    3.6    4.7     2.7    7.2
    Goods                            9.9    2.5    5.0     3.6    6.3
    Services                         4.1    6.2    4.0     0.4    9.5
  Imports                           18.0    1.4    1.2     3.7    6.1
    Goods                           15.1    1.6    0.5     3.3    5.0
    Services                         2.9    0.4    4.8     5.6   12.0

Government consumption
  expenditures and gross
  investment.                       19.5   -0.9   -0.1    -4.2   -3.9
  Federal                            7.9    1.9    2.1    -6.9   -5.9
    National defense                 5.2    7.0    5.0   -12.1   -8.3
    Nondefense                       2.7   -7.6   -3.8     4.5   -0.8
  State and local                   11.6   -2.8   -1.6    -2.2   -2.5

                                   Contribution to percent
                                      change in real GDP
                                     (percentage points)

                                       2011            2012

                                II      III     IV       I

    Gross domestic product
     (1)                         1.3     1.8     3.0     1.9
Personal consumption
  expenditures                  0.49    1.24    1.47    1.90

  Goods                        -0.38    0.33    1.29    1.44
    Durable goods              -0.42    0.42    1.16    1.05
    Nondurable goods            0.04   -0.09    0.13    0.38
  Services                      0.87    0.90    0.19    0.47

Gross private domestic
  investment                    0.79    0.17    2.59    0.81
  Fixed investment              1.07    1.52    0.78    0.61
    Nonresidential              0.98    1.49    0.53    0.20
      Structures                0.54    0.37   -0.02   -0.09
      Equipment and software    0.44    1.12    0.55    0.30
    Residential                 0.09    0.03    0.25    0.41
  Change in private
    inventories                -0.28   -1.35    1.81    0.21

Net exports of goods
  and services                  0.24    0.43   -0.26   -0.08
  Exports                       0.48    0.64    0.37    0.98
    Goods                       0.24    0.48    0.36    0.60
    Services                    0.24    0.16    0.02    0.37
  Imports                      -0.24   -0.21   -0.63   -1.05
    Goods                      -0.23   -0.08   -0.48   -0.73
    Services                   -0.01   -0.13   -0.15   -0.33

Government consumption
  expenditures and gross
  investment.                  -0.18   -0.02   -0.84   -0.78
  Federal                       0.16    0.17   -0.58   -0.48
    National defense            0.37    0.27   -0.70   -0.46
    Nondefense                 -0.22   -0.10    0.12   -0.02
  State and local              -0.34   -0.19   -0.26   -0.30

1. The estimates under the contribution columns are also percent
changes

NOTE. Percent changes are from NIPA table 1.1.1, contributions
are from NIPA table 1.1.2, and shares are from NIPA table 1.1.10.

Table 2. Real Gross Domestic Product (GDP) and Related Measures

[Seasonally adjusted at annual rates]

                            Share of             Change from
                            current-           preceding period
                             dollar               (percent)
                               GDP
                            (percent)

                              2012              2011            2012

                                I        II      III     IV       I

Gross domestic product
     (1)                        100.0     1.3     1.8     3.0     1.9
    Final sales of
      domestic product           99.5     1.6     3.2     1.1     1.7
    Change in private
      inventories                 0.5
  Goods                          28.7    -0.6     2.2    13.0     5.9
  Services                       64.5     1.8     1.2    -1.0     0.2
  Structures                      6.8     5.0     5.8     2.0     1.2

Addenda

Motor vehicle output              2.8    -4.1     5.1    20.4    51.1
GDP excluding motor
  vehicle output                 97.2     1.5     1.7     2.5     0.8
Final sales of computers          0.6    13.0    42.1    21.2    -4.9
GDP excluding final sales
  of computers                   99.4     1.3     1.6     2.8     1.9
Gross domestic income
  (GDI) (2)                       ...     0.2     2.6     2.6     2.7

                                 Contribution to percent
                                    change in real GDP
                                    (percentage points)

                                    2011            2012

                             II      III     IV       I

Gross domestic product
     (1)                      1.3     1.8     3.0     1.9
    Final sales of
      domestic product       1.62    3.16    1.14    1.66
    Change in private
      inventories           -0.28   -1.35    1.81    0.21
  Goods                     -0.17    0.62    3.49    1.65
  Services                   1.18    0.81   -0.67    0.13
  Structures                 0.33    0.38    0.14    0.08

Addenda

Motor vehicle output        -0.10    0.12    0.47    1.12
GDP excluding motor
  vehicle output             1.44    1.69    2.48    0.74
Final sales of computers     0.07    0.22    0.12   -0.03
GDP excluding final sales
  of computers               1.26    1.60    2.83    1.89
Gross domestic income
  (GDI) (2)

1. The estimates under the contribution columns are also percent
changes.

2. GDI is deflated by the implicit price deflator for GDP. The
third-quarter change reflect the incorporation of revised wage
and salary estimates for the third quarter of 2011.

NOTE. For GDP and its components, percent changes are from NIPA
table 1.2.1, contributions are from NIPA table 1.2.2, and shares
are calculated from NIPA table 1.2.5. For GDI, percent changes
are from NIPA table 1.7.1.

Table 3. Real Personal Consumption Expenditures (PCE)

[Seasonally adjusted at annual rates]

                            Share of             Change from
                            current-           preceding period
                             dollar               (percent)
                               PCE
                            (percent)

                              2012              2011            2012

                                I        II      III     IV       I

    PCE (1)                     100.0     0.7     1.7     2.1     2.7
Goods                            34.4    -1.6     1.4     5.4     6.1
  Durable goods                  11.2    -5.3     5.7    16.1    14.3
    Motor vehicles and
      parts                       3.8   -25.5     1.6    38.8    22.2
    Furnishings and
      durable household
      equipment                   2.4     3.1     5.6     9.2     9.5
    Recreational goods
      and vehicles                3.2     8.9    12.1    12.5    10.8
    other durable goods           1.8     6.1     2.6    -6.9    10.9
  Nondurable goods               23.2     0.2    -0.5     0.8     2.3
    Food and beverages
      for off-premises
      consumption                 7.5     1.2    -0.1    -1.3     2.0
    Clothing and footwear         3.3     2.2    -7.8     3.3     5.6
    Gasoline and other
      energy goods                4.0    -8.0    -1.5    -2.7    -2.1
    other nondurable
      goods                       8.4     2.7     2.6     3.3     3.5
Services                         65.6     1.9     1.9     0.4     1.0
  Household consumption
    expenditures                 62.9     1.9     1.6     0.4     0.8
    Housing and utilities        17.5     0.7     2.8    -3.2    -2.3
    Health care                  15.9     2.8    -0.6     2.2     0.5
    Transportation
      services                    2.8    -0.2     0.3     0.0     1.8
    Recreation services           3.8     9.2     7.5    -1.3     1.0
    Food services and
      accommodations              6.5     1.1     2.6     5.5     5.2
    Financial services
      and insurance               7.5     1.3     3.5    -2.9     4.8
    other services                8.9     1.5    -0.8     5.1     0.7
  Final consumption
    expenditures of
    NPISHs (2)                    2.7     0.8     9.7    -0.8     6.0
    Gross output of
      NPISHs (3)                 10.8     1.4    -0.3     3.1     2.4
    Less: Receipts from
      sales of goods and
      services by NPISHs          8.1     1.5    -3.4     4.4     1.2
     (4)

                                 Contribution to percent
                                   change in real PCE
                                   (percentage points)

                                    2011            2012

                             II      III     IV       I

    PCE (1)                   0.7     1.7     2.1     2.7
Goods                       -0.54    0.47    1.81    2.03
  Durable goods             -0.59    0.60    1.63    1.49
    Motor vehicles and
      parts                 -1.03    0.06    1.17    0.76
    Furnishings and
      durable household
      equipment              0.07    0.13    0.21    0.22
    Recreational goods
      and vehicles           0.27    0.37    0.38    0.33
    other durable goods      0.10    0.05   -0.12    0.18
  Nondurable goods           0.05   -0.13    0.18   0.54
    Food and beverages
      for off-premises
      consumption            0.09   -0.01   -0.10    0.15
    Clothing and footwear    0.07   -0.27    0.11    0.18
    Gasoline and other
      energy goods          -0.33   -0.06   -0.11   -0.08
    other nondurable
      goods                  0.22    0.21    0.27    0.30
Services                     1.22    1.27    0.27   0.67
  Household consumption
    expenditures             1.20    1.03    0.29    0.51
    Housing and utilities    0.13    0.49   -0.57   -0.42
    Health care              0.45   -0.10    0.34    0.09
    Transportation
      services              -0.01    0.01    0.00    0.05
    Recreation services      0.33    0.27   -0.05    0.04
    Food services and
      accommodations         0.07    0.17    0.35    0.33
    Financial services
      and insurance          0.10    0.26   -0.22    0.36
    other services           0.13   -0.07    0.44    0.07
  Final consumption
    expenditures of
    NPISHs (2)               0.02    0.25   -0.02    0.16
    Gross output of
      NPISHs (3)             0.15   -0.03    0.33    0.26
    Less: Receipts from
      sales of goods and
      services by NPISHs     0.13   -0.28    0.35    0.10
     (4)

1. The estimates under the contribution columns are also percent
changes.

2. Net of expenses, or gross operating expenses less primary
sales to households.

3. Net of unrelated sales, secondary sales, and sales to
business, to government, and to the rest of the world; excludes
own-account investment (construction and software).

4. Excludes unrelated sales, secondary sales, and sales to
business, to government, and to the rest of the world; includes
membership dues and fees.

NOTE. Percent changes are from NIPA table 2.3.1, and
contributions, from NIPA table 2.3.2; shares are calculated from
NIPA table 2.3.5.

NPISHs Nonprofit institutions serving households

Table 4. Real Private Fixed Investment (PFI)

[Seasonally adjusted at annual rates]

                            Share of             Change from
                            current-           preceding period
                             dollar               (percent)
                               PFI
                            (percent)

                              2012              2011            2012

                                I        II      III     IV       I

    Private fixed
      investment (1)            100.0     9.2    13.0     6.3     4.9
Nonresidential                   81.7    10.3    15.7     5.2     1.9
  Structures                     21.7    22.6    14.4    -0.9    -3.3
    Commercial and health
      care                        4.8    22.7    10.8   -13.5     8.7
    Manufacturing                 2.3    55.4    35.6    29.2    13.6
    Power and
      communication               5.0    13.0    19.6    24.2    -7.6
    Mining exploration,
      shafts, and wells           6.7    33.6     7.5   -18.7   -13.0
    other structures (2)          3.0    -2.4    16.2    12.2    -2.5
  Equipment and software         60.0     6.2    16.2     7.5     3.9
    Information
      processing
      equipment and
      software                   29.7     8.9     1.2     9.6     3.8
      Computers and
        peripheral
        equipment                 5.4    50.5    12.1    15.4    -2.1
      Software (3)               14.5     8.0     8.0     9.9     6.1
      other (4)                   9.7    -6.7   -13.0     6.0     3.9
    Industrial equipment         10.3    -0.8    31.8    17.8   -15.0
    Transportation
      equipment                   9.2    14.9    33.0    18.9    21.6
    Other equipment (5)          10.8    -0.5    36.7   -13.9    11.4
Residential                      18.3     4.2     1.3    11.6    19.4
  Structures                     17.8     4.2     1.2    11.8    20.0
    Permanent site                6.6    -4.6     7.6     9.0    26.3
      Single family               5.8    -6.4     3.6     8.5    26.5
      Multifamily                 0.8    10.0    41.6    12.7    25.3
    other structures (6)         11.2     9.8    -2.3    13.4    16.4
  Equipment                       0.5     3.3     5.5     5.1    -1.3

                               Contribution to percent
                                 change in real PFI
                                (percentage points)

                                    2011            2012

                             II      III     IV       I

    Private fixed
      investment (1)          9.2    13.0     6.3     4.9
Nonresidential               8.39   12.69    4.30    1.65
  Structures                 4.52    3.10   -0.17   -0.74
    Commercial and health
      care                   1.02    0.53   -0.70    0.40
    Manufacturing            0.87    0.65    0.56    0.29
    Power and
      communication          0.59    0.89    1.09   -0.40
    Mining exploration,
      shafts, and wells      2.11    0.55   -1.49   -0.95
    other structures (2)    -0.06    0.47    0.36   -0.08
  Equipment and software     3.87    9.59    4.47    2.39
    Information
      processing
      equipment and
      software               2.73    0.45    2.77    1.13
      Computers and
        peripheral
        equipment            2.30    0.67    0.80   -0.12
      Software (3)           1.17    1.17    1.39    0.87
      other (4)             -0.74   -1.39    0.58    0.38
    Industrial equipment    -0.05    2.98    1.78   -1.72
    Transportation
      equipment              1.22    2.59    1.54    1.81
    Other equipment (5)     -0.03    3.57   -1.62    1.17
Residential                  0.78    0.28    1.98    3.23
  Structures                 0.77    0.25    1.95    3.24
    Permanent site          -0.31    0.49    0.56    1.54
      Single family         -0.38    0.21    0.46    1.36
      Multifamily            0.07    0.28    0.10    0.19
    other structures (6)     1.08   -0.24    1.39    1.70
  Equipment                  0.02    0.03    0.02   -0.01

1. The estimates under the contribution columns are also percent
changes.

2. Consists primarily of religious, educational, vocational,
lodging, railroads, farm, and amusement and recreational
structures, net purchases of used structures, and brokers'
commissions on the sale of structures.

3. Excludes software "embedded," or bundled, in computers and
other equipment.

4. Includes communication equipment, nonmedical instruments,
medical equipment and instruments, photocopy and related
equipment, and office and accounting equipment.

5. Consists primarily of furniture and fixtures, agricultural
machinery, construction machinery, mining and oilfield machinery,
service industry machinery, and electrical equipment not
elsewhere classified.

6. Consists primarily of manufactured homes, improvements,
dormitories, net purchases of used structures, and brokers'
commissions on the sale of residential structures.

NOTE. Percent changes are from NIPA table 5.3.1, contributions
are from NIPA table 5.3.2, and shares are calculated from NIPA
table 5.3.5.

Table 5. Change in Real Private Inventories by Industry

[Billions of chained (2005) dollars; seasonally adjusted
at annual rates]

                                                Level

                                2012            2011            2012

                                  I      II      III     IV       I

  Change in private
    inventories (1)              49.1    39.1    -2.0    52.2    57.7
Farm                             -7.8    -8.7    -6.0    -5.7    -6.5
Mining, utilities, and
  construction                   -1.2     2.5    -0.8     7.5    16.5
Manufacturing.                   33.3    24.2    11.3    33.0    15.0
  Durable-goods industries       27.3    21.2    19.1    20.3    13.2
  Nondurable-goods industries     7.0     4.0    -5.9    12.7     2.6
Wholesale trade                  22.3    39.0     6.4    31.1    21.1
  Durable-goods industries       15.2    30.6    23.2    14.2    23.1
  Nondurable-goods industries     7.5    10.1   -12.4    16.1     0.5
Retail trade                     -0.7   -20.5   -12.7   -17.5    15.8
  Motor vehicle and parts
    dealers                      -9.1   -23.0   -11.1   -16.3    14.3
  Food and beverage stores       -0.3     2.1     1.3    -0.2     2.4
  General merchandise stores      3.7    -0.9    -0.2     3.9     0.3
  Other retail stores             4.3    -0.4    -3.5    -5.9    -0.3
Other industries                  3.9     1.5    -0.4     2.9    -1.0
Residual (2)                     -1.4     0.1    -5.3     2.7    -7.4

Addenda: Ratios of private
  inventories to final sales
  of domestic business: (3)

  Private inventories to
    final sales                  2.34    2.34    2.32    2.32    2.32
  Nonfarm inventories to
    final sales                  2.14    2.15    2.13    2.13    2.14
  Nonfarm inventories to
    final sales of goods
    and structures.              3.94    3.96    3.90    3.88    3.88

                                         Change from
                                      preceding quarter

                                        2011            2012

                                 II      III     IV       I

  Change in private
    inventories (1)             -10.0   -41.1    54.2     5.5
Farm                             -0.9     2.7     0.3    -0.8
Mining, utilities, and
  construction                    3.7    -3.3     8.3     9.0
Manufacturing.                   -9.1   -12.9    21.7   -18.0
  Durable-goods industries       -6.1    -2.1     1.2    -7.1
  Nondurable-goods industries    -3.0    -9.9    18.6   -10.1
Wholesale trade                  16.7   -32.6    24.7   -10.0
  Durable-goods industries       15.4    -7.4    -9.0     8.9
  Nondurable-goods industries     2.6   -22.5    28.5   -15.6
Retail trade                    -19.8     7.8    -4.8    33.3
  Motor vehicle and parts
    dealers                     -13.9    11.9    -5.2    30.6
  Food and beverage stores        2.4    -0.8    -1.5     2.6
  General merchandise stores     -4.6     0.7     4.1    -3.6
  Other retail stores            -4.7    -3.1    -2.4     5.6
Other industries                 -2.4    -1.9     3.3    -3.9
Residual (2)                      ...      ...    ...     ...

Addenda: Ratios of private
  inventories to final sales
  of domestic business: (3)

  Private inventories to
    final sales                   ...      ...    ...     ...
  Nonfarm inventories to
    final sales                   ...      ...    ...     ...
  Nonfarm inventories to
    final sales of goods
    and structures                ...      ...    ...     ...

1. The levels are from NIPA table 5.6.6B.

2. The residual is the difference between the first line and the
sum of the most detailed lines.

3. The ratios are from NIPA table 5.7.6B.

NOTE. The chained-dollar series are calculated as the period-to-
period change in end-of-period inventories.

Quarterly changes are stated at annual rates. Because the formula
for the chain-type quantity indexes uses weights of more than one
period, chained-dollar estimates are usually not additive.

Table 6. Real Exports and Imports of Goods and Services
[Seasonally adjusted at annual rates]

                            Share of            Change from
                            current-          preceding period
                             dollar               (percent)
                             exports
                               and
                             imports
                            (percent)

                              2012              2011            2012

                                I        II      III     IV       I

  Exports of goods and
    services (1)                100.0     3.6     4.7     2.7     7.2
Exports of goods (2)             70.4     2.5     5.0     3.6     6.3
  Foods, feeds, and
    beverages                     5.7    -7.4   -19.5     6.3    -0.1
  Industrial supplies and
    materials                    22.8    -6.2     4.4     8.6    -0.9
 Capital goods, except
    automotive                   24.1    15.7    10.1     1.5    11.8
  Automotive vehicles,
    engines, and parts            6.8    -1.0    28.0    -9.1    39.0
  Consumer goods, except
    automotive                    8.2    15.2     1.5     8.2   -11.7
  other                           2.9   -23.5    -8.6    -5.2    28.2
  Exports of services (2)        29.6     6.2     4.0     0.4     9.5
    Imports of goods and
      services (1)              100.0     1.4     1.2     3.7     6.1
Imports of goods (2)             84.0     1.6     0.5     3.3     5.0
  Foods, feeds, and
    beverages                     4.0     3.8     4.8    18.2    -3.0
  Industrial supplies and
    materials, except
    petroleum and
    products                     10.5    23.5    -2.5   -13.3    16.3
  Petroleum and products         17.3   -11.3    -5.8     3.5   -21.1
  Capital goods, except
    automotive                   19.8    16.8     1.9    13.1    13.5
  Automotive vehicles,
    engines, and parts           10.7   -37.7    70.6    -0.4    55.3
  Consumer goods, except
    automotive                   18.4     4.8   -11.1    -0.5    -5.1
  other                           3.2    54.2   -37.1    29.1    22.4
Imports of services (2)          16.0     0.4     4.8     5.6    12.0

Addenda:
  Exports of agricultural
    goods (3)                     6.3   -17.9   -24.9    12.4    15.6
  Exports of
    nonagricultural goods        64.1     5.1     8.6     2.8     5.4
  Imports of nonpetroleum
    goods                        66.7     5.2     2.3     3.3    13.0

                                   Contribution to
                                  percent change in
                               real exports and imports
                                 (percentage points)

                                    2011            2012

                             II      III     IV       I

  Exports of goods and
    services (1)              3.6     4.7     2.7     7.2
Exports of goods (2)         1.79    3.51    2.56    4.51
  Foods, feeds, and
    beverages               -0.47   -1.29    0.36    0.01
  Industrial supplies and
    materials               -1.48    1.04    1.94   -0.14
 Capital goods, except
    automotive               3.43    2.31    0.36    2.73
  Automotive vehicles,
    engines, and parts      -0.06    1.58   -0.61    2.22
  Consumer goods, except
    automotive               1.20    0.13    0.67   -1.03
  other                     -0.83   -0.26   -0.15    0.73
  Exports of services (2)    1.77    1.15    0.11    2.73
    Imports of goods and
      services (1)           1.40    1.20    3.70    6.10
Imports of goods (2)         1.31    0.46    2.79    4.24
  Foods, feeds, and
    beverages                0.15    0.19    0.70   -0.12
  Industrial supplies and
    materials, except
    petroleum and
    products                 2.37   -0.28   -1.58    1.62
  Petroleum and products    -2.11   -1.05    0.59   -4.09
  Capital goods, except
    automotive               2.97    0.36    2.42    2.54
  Automotive vehicles,
    engines, and parts      -4.39    4.98   -0.04    4.60
  Consumer goods, except
    automotive               0.93   -2.28   -0.08   -0.97
  other                      1.38   -1.46    0.79    0.65
Imports of services (2)      0.07    0.75    0.88    1.84

Addenda:
  Exports of agricultural
    goods (3)                 ...     ...     ...     ...
  Exports of
    nonagricultural goods     ...     ...     ...     ...
  Imports of nonpetroleum
    goods                     ...     ...     ...     ...

1. The estimates under the contribution columns are also percent
changes.

2. Exports and imports of certain goods, primarily military
equipment purchased and sold by the federal government, are
included in services.

3. Includes parts of foods, feeds, and beverages, of nondurable
industrial supplies and materials, and of nondurable
nonautomotive consumer goods.

Note. Percent changes are from NIPA table 4.2.1, contributions
are from NIPA table 4.2.2, and shares are calculated from NIPA
table 4.2.5.

Table 7. Real Government Consumption Expenditures
and Gross Investment (CEGI)

[Seasonally adjusted at annual rates]

                            Share of             Change from
                            current-           preceding period
                             dollar               (percent)
                              CEGI
                            (percent)

                              2012              2011            2012

                                I        II      III     IV       I

Government consumption
  expenditures and
  gross investment (1)          100.0    -0.9    -0.1    -4.2    -3.9
    Consumption
    expenditures                 84.3     0.5    -0.7    -4.2    -2.3
    Gross investment             15.7    -7.8     3.3    -3.7   -12.0
Federal                          40.4     1.9     2.1    -6.9    -5.9
  National defense               26.8     7.0     5.0   -12.1    -8.3
    Consumption
      expenditures               23.5     9.1     4.0   -11.6    -6.1
    Gross investment              3.3    -5.8    11.9   -15.4   -22.5
  Nondefense                     13.6    -7.6    -3.8     4.5    -0.8
    Consumption
      expenditures               11.9    -8.0    -4.9     6.1    -0.9
    Gross investment              1.7    -5.0     4.2    -5.5    -0.6
State and local                  59.6    -2.8    -1.6    -2.2    -2.5
  Consumption
    expenditures                 49.0    -1.4    -2.0    -2.8    -0.8
  Gross investment               10.6    -8.9     0.4     0.8   -10.2

                               Contribution to percent
                                 change in real CEGI
                                 (percentage points)

                                    2011            2012

                             II      III     IV       I

Government consumption
  expenditures and
  gross investment (1)       -0.9    -0.1    -4.2    -3.9
    Consumption
    expenditures             0.40   -0.61   -3.57   -1.91
    Gross investment        -1.29    0.52   -0.59   -1.99
Federal                      0.78    0.83   -2.87   -2.40
  National defense           1.84    1.34   -3.47   -2.29
    Consumption
      expenditures           2.05    0.94   -2.88   -1.45
    Gross investment        -0.21    0.40   -0.58   -0.85
  Nondefense                -1.07   -0.51    0.60   -0.10
    Consumption
      expenditures          -0.98   -0.58    0.70   -0.09
    Gross investment        -0.09    0.07   -0.10   -0.01
State and local             -1.67   -0.93   -1.29   -1.50
  Consumption
    expenditures            -0.68   -0.97   -1.38   -0.37
  Gross investment          -0.99    0.05    0.09   -1.13

1. The estimates under the contribution columns are also percent
changes.

NOTE. Percent changes are from NIPA table 3.9.1, contributions
from NIPA table 3.9.2, and shares are  calculated from NIPA table
3.9.5.

Table 8. Prices for Gross Domestic Purchases

[Percent change at annual rates; based on seasonally
adjusted index numbers (2005=100)]

                                                    Change from
                                                    preceding period
                                                    (percent)

                                               2011            2012

                                        II      III     IV       I

  Gross domestic purchases (1)           3.3     2.0     1.1     2.4
Personal consumption expenditures        3.3     2.3     1.2     2.4
  Goods                                  5.1     2.9     0.0     2.5
    Durable goods                        1.7    -0.5    -2.5    -1.0
    Nondurable goods                     6.7     4.5     1.2     4.2
  Services                               2.4     2.1     1.8     2.4
Gross private domestic investment        2.2     1.1     1.4     1.1
  Fixed investment                       2.4     1.5     1.3     1.2
    Nonresidential                       2.5     1.8     1.6     1.7
      Structures                         6.1     5.6     4.3     2.7
      Equipment and software             1.2     0.4     0.6     1.4
    Residential                          2.0     0.3     0.2    -1.3
  Change in private inventories          ...     ...     ...     ...
Government consumption expenditures
  and gross investment                   4.2     1.3     0.9     3.5
  Federal                                3.8     1.8    -0.4     4.0
    National defense                     3.8     1.5    -0.6     5.0
    Nondefense                           3.7     2.3     0.1     1.9
  State and local                        4.5     0.9     1.8     3.3

Addenda:

Gross domestic purchases:
  Food                                   5.7     4.2     3.5     1.1
  Energy goods and services             15.0     3.2    -3.0     7.7
  Excluding food and energy              2.7     1.8     1.2     2.3
Personal consumption expenditures
    (PCE):
  Food and beverages for
    off-premises consumption             6.4     4.7     3.3     1.3
  Energy goods and services             15.0     3.3    -3.2     7.9
  Excluding food and energy              2.3     2.1     1.3     2.1
Gross domestic product (GDP)             2.5     2.6     0.9     1.7
Exports                                  8.8     1.9    -3.7     3.4
Imports                                 12.5    -1.3    -1.2     7.7

                                          Contribution to percent
                                              change in gross
                                         domestic purchases prices
                                             (percentage points)

                                               2011            2012

                                        II      III     IV       I

  Gross domestic purchases (1)           3.3     2.0     1.1     2.4
Personal consumption expenditures       2.26    1.60    0.80    1.64
  Goods                                 1.17    0.67    0.00    0.59
    Durable goods                       0.13   -0.04   -0.19   -0.08
    Nondurable goods                    1.04    0.71    0.19    0.66
  Services                              1.09    0.93    0.79    1.06
Gross private domestic investment       0.27    0.14    0.17    0.14
  Fixed investment                      0.28    0.18    0.16    0.14
    Nonresidential                      0.24    0.17    0.16    0.17
      Structures                        0.15    0.15    0.11    0.07
      Equipment and software            0.09    0.03    0.04    0.10
    Residential                         0.04    0.01    0.00   -0.03
  Change in private inventories        -0.01   -0.04    0.01    0.00
Government consumption expenditures
  and gross investment                  0.81    0.24    0.17    0.66
  Federal                               0.30    0.14   -0.03    0.30
    National defense                    0.20    0.08   -0.03    0.25
    Nondefense                          0.10    0.06    0.00    0.05
  State and local                       0.52    0.10    0.20    0.36

Addenda:

Gross domestic purchases:
  Food                                  0.28    0.21    0.18    0.06
  Energy goods and services             0.60    0.13   -0.13    0.32
  Excluding food and energy             2.46    1.64    1.10    2.08
Personal consumption expenditures
    (PCE):
  Food and beverages for
    off-premises consumption             ...     ...     ...     ...
  Energy goods and services              ...     ...     ...     ...
  Excluding food and energy              ...     ...     ...     ...
Gross domestic product (GDP)             ...     ...     ...     ...
Exports                                  ...     ...     ...     ...
Imports                                  ...     ...     ...     ...

1. The estimates 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 calculated from index numbers
in NIPA table 2.3.4. Contributions are from NIPA table 1.6.8. GDP
export, and import prices are from NIPA table1.1.7.

Table 9. Advance and Second Estimates for the First Quarter of 2012

[Seasonally adjusted at annual rates]

                                                Change from
                                             preceding quarter
                                                 (percent)

                                           Ad-    Second   Second
                                          vance             minus
                                                           advance

  Gross domestic product (GDP) (1)          2.2      1.9      -0.3
Personal consumption expenditures           2.9      2.7      -0.2
  Goods                                     6.2      6.1      -0.1
  Durable goods                            15.3     14.3      -1.0
  Nondurable goods                          2.1      2.3       0.2
  Services                                  1.2      1.0      -0.2
Gross private domestic investment           6.0      6.3       0.3
  Fixed investment                          0.4      4.9       3.5
    Nonresidential                         -2.1      1.9       4.0
      Structures                          -12.0     -3.3       8.7
      Equipment and software                1.7      3.9       2.2
    Residential                            19.1     19.4       0.3
  Change in private inventories             ...                ...
Net exports of goods and services           ...                ...
  Exports                                   5.4      7.2       1.8
    Goods                                   4.1      6.3       2.2
    Services                                8.6      9.5       0.9
  Imports                                   4.3      6.1       1.8
    Goods                                   3.0      5.0       2.0
    Services                               11.0     12.0       1.0
Government consumption expenditures
  and gross investment                     -3.0     -3.9      -0.9
  Federal                                  -5.6     -5.9      -0.3
    National defense                       -8.1     -8.3      -0.2
    Nondefense                             -0.6     -0.8      -0.2
  State and local                          -1.2     -2.5      -1.3

Addenda:

  Final sales of domestic product           1.6      1.7       0.1
  Gross domestic purchases price index      2.4      2.4       0.0
  GDP price index                           1.5      1.7       0.2

                                          Contribution to percent
                                             change in real GDP
                                             (percentage points)

                                           Ad-    Second   Second
                                          vance             minus
                                                           advance

  Gross domestic product (GDP) (1)          2.2      1.9      -0.3
Personal consumption expenditures          2.04     1.90     -0.14
  Goods                                    1.47     1.44     -0.03
  Durable goods                            1.13     1.05     -0.08
  Nondurable goods                         0.35     0.38      0.03
  Services                                 0.57     0.47     -0.10
Gross private domestic investment          0.77     0.81      0.04
  Fixed investment                         0.18     0.61      0.43
    Nonresidential                        -0.22     0.20      0.42
      Structures                          -0.35    -0.09      0.26
      Equipment and software               0.13     0.30      0.17
    Residential                            0.40     0.41      0.01
  Change in private inventories            0.59     0.21     -0.38
Net exports of goods and services         -0.01    -0.08     -0.07
  Exports                                  0.73     0.98      0.25
    Goods                                  0.39     0.60      0.21
    Services                               0.34     0.37      0.03
  Imports                                 -0.74    -1.05     -0.31
    Goods                                 -0.44    -0.73     -0.29
    Services                              -0.30    -0.33     -0.03
Government consumption expenditures
  and gross investment                    -0.60    -0.78     -0.18
  Federal                                 -0.46    -0.48     -0.02
    National defense                      -0.44    -0.46     -0.02
    Nondefense                            -0.01    -0.02     -0.01
  State and local                         -0.14    -0.30     -0.16

Addenda:

  Final sales of domestic product          1.62     1.66      0.04
  Gross domestic purchases price index      ...      ...       ...
  GDP price index                           ...      ...       ...

1. The estimates under the contribution columns are also
percent changes.

Table 10. Corporate Profits

[Seasonally adjusted]

                                 Billions of dollars (annual rate)

                              Level            Change from
                                            preceding quarter

                              2012             2011             2012

                                I       II      III     IV       I

Current production
    measures:
  Corporate profits          1,998.3    61.2    32.5    16.8     11.4
    Domestic industries      1,604.5    26.5    27.1    58.3     26.9
      Financial                478.8   -54.2     9.2    29.9     20.6
      Nonfinancial           1,125.7    80.8    17.9    28.4      6.3
    Rest of the world          393.8    34.6     5.4   -41.5    -15.5
      Receipts from the
        rest of the world      628.7    49.0   -10.5   -25.2      3.5
      Less: Payments to
        the rest of the
        world                  234.9    14.4   -16.0    16.4     19.0
  Less: Taxes on corporate
    income                     486.5    -1.8    -9.1    -0.7     75.8
  Equals: Profits after
      tax                    1,511.8    63.0    41.6    17.5    -64.4
    Net dividends              841.7    13.6    14.0    10.3     10.0
    Undistributed profits
      from current
      production               670.2    49.3    27.7     7.2    -74.3
  Net cash flow              1,794.4    86.2    35.8    44.8    -98.4
Industry profits:
  Profits with IVA           2,127.8    69.1    37.2    18.6    241.8
    Domestic industries      1,734.0    34.6    31.7    60.1    257.3
      Financial                523.5   -52.6     9.8    30.1     44.7
      Nonfinancial.          1,210.5    87.1    22.0    30.1    212.5
    Rest of the world.         393.8    34.6     5.4   -41.5    -15.5

Addenda:
  Profits before tax
    (without IVA and
    CCAdj)                   2,155.8    13.5    22.3    -8.3    251.2
  Profits after tax
    (without IVA
    and CCAdj)               1,669.3    15.3    31.4    -7.6    175.4
  IVA                          -28.0    55.6    14.9    26.9     -9.4
  CCAdj                       -129.5    -8.1    -4.6    -1.8   -230.4

                            Billions of dollars (annual rate)

                                  Percent change from
                                   preceding quarter
                                     (quarter rate)

                                     2011            2012

                              II      III     IV       I

Current production
    measures:
  Corporate profits            3.3     1.7     0.9     0.6
    Domestic industries        1.8     1.8     3.8     1.7
      Financial              -11.5     2.2     7.0     4.5
      Nonfinancial             8.1     1.7     2.6     0.6
    Rest of the world          8.4     1.2    -9.2    -3.8
      Receipts from the
        rest of the world      8.0    -1.6    -3.9     0.6
      Less: Payments to
        the rest of the
        world                  7.2    -7.4     8.2     8.8
  Less: Taxes on corporate
    income                    -0.4    -2.2    -0.2    18.5
  Equals: Profits after
      tax                      4.3     2.7     1.1    -4.1
    Net dividends              1.7     1.7     1.3     1.2
    Undistributed profits
      from current
      production               7.5     3.9     1.0   -10.0
  Net cash flow                5.0     2.0     2.4    -5.2
Industry profits:
  Profits with IVA             3.9     2.0     1.0    12.8
    Domestic industries        2.6     2.3     4.2    17.4
      Financial              -10.7     2.2     6.7     9.3
      Nonfinancial.           10.1     2.3     3.1    21.3
    Rest of the world.         8.4     1.2    -9.2    -3.8

Addenda:
  Profits before tax
    (without IVA and
    CCAdj)                     0.7     1.2    -0.4    13.2
  Profits after tax
    (without IVA
    and CCAdj)                 1.1     2.1    -0.5    11.7
  IVA                          ...     ...     ...     ...
  CCAdj                        ...     ...     ...     ...

NOTE. Levels of these and other profits series are shown in NIPA
tables 1.12, 1.14, 1.15, and 6.16D.

IVA Inventory valuation adjustment

CCAdj Capital consumption adjustment Table 10. Corporate Profits