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BUREAU OF ECONOMIC ANALYSISECONOMICS & STATISTICS ADMINISTRATIONU.S. DEPARTMENT OF COMMERCE

Measuring th

Content

Message from the About BEA BEA’s Web Site U.S. Economic AccNational Econom

Gross domestic pPersonal income Corporate profi ts Fixed assets and 

International Econ

International tranTrade in goods aInternational servInternational invDirect investmen multinationa U.S. direct inves Foreign direct i

Regional Econom

GDP by state State personal inLocal area personRegional input-o

Industry Economi

Annual industry  GDP-by-industr Annual input-oBenchmark inputU.S. travel and to

BEA Contacts 

2007 CUSTOMER GUIDE
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About BEAAlthough relatively small, the U.S. statistical agencies. Located within preparing economic accounts for BEA’s accounts, which cover natiessential information on such key ment, the relationships among inBEA obtains data from a vast arraand analysis, develops and implethe public.The economic accounts provide  activity. These closely watched fecting monetary policy, tax an

Message fro

The Bureau of Economic Analysaccurate economic data to its ugovernment offi cials, business lto follow and understand the peIntegrity, quality, excellence, reswork. Success depends on your BEA takes pride in its work and its data. So, if you have any quesany BEA staff member. J. Steven Landefeld, DirectorBureau of Economic Analysis
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BEA’s Web site: www.bea.gov

 U.S. Economy at a Glance

BEA produces some of the most closely watched economic statistics that provide a comprehensive, up-to-date picture of the U.S. economy. The data on this page are the most recent indicators, charts, and maps drawn from featured BEA economic accounts.

 Current Releases 

The latest economic indicators are listed front and center on the home page, in their respective account areas. Select the side bar links to read additional current releases, review past releases by subject and date, or check the schedule of future release dates.

 Newsroom

BEA’s newsroom gathers the information that reporters most  frequently seek. It provides fast facts, links to estimates, and background information about BEA. Information is presented in layman’s language and aligned with the economic indicators that BEA presents. 

 Survey of Current Business

The monthly journal Survey of Current Business is the defi nitive source of information about BEA’s economic accounts. Articles in the Surveypresent the latest national, international, regional, and industry estimates; describe the methods used to prepare the estimates; and discuss major revisions and other relevant information. Each issue includes numerous tables and charts that present various estimates in historical context. The Surveyalso provides updates of key research and other important initiatives at BEA. You can access the Survey on BEA’s Web site or subscribe by contacting the U.S. Government Printing Offi ce at (202) 512-1800 or at bookstore.gpo.gov.

 Interactive data tables

You can view, download and print BEA data using BEA’s interactive tables, charts, or maps The data are highly customizable. For example, you can create broad time-series tables or focus on a specifi c year, quarter, industry, or country. Most interactive tables can be downloaded as 

a comma separated value (.csv) fi l

for easy printing. In some areas of or line charts or in a map.

 BEA papers 

Formal papers and presentations You can perform a single keywosearch via a link from the results The search engine clusters search ment directly within the results pathe document. 

 Of interest 

Watch BEA’s “of interest” corner for Web site.

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For more information, go to www.bea.govand click on “National”

U.S. EconomBEA prepares the U.S. nationThese accounts present a brwithin a framework that is cnomic accounts.

 The national economic accounts tethe structure and path of the U.SThe core of these accounts is thincome and product accounts (NNIPAs are organized into seven accounts. 1. The domestic income and 

account shows the productisectors of the economy. T(product) side of the accougross domestic product (GDP) as the sum of goods and serto final users and the left (incof the account shows GDP as by the incomes earned in prodgross domestic income—“statistical discrepancy” (the dbetween the two measures).

2. The private enterprise incom

provides additional informatiosources and uses of the income businesses and other private en

3. The personal income and outla

shows the sources and uses oreceived by persons.

4. The government receipts and ex

account summarizes the transathe federal government and for local governments.

5. The foreign transactions curren

provides information on recpayments associated with trade and services with the rest of the other activities not involving trassets.

6. The domestic capital account 

information on saving and invethe economy.

National Econ
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als from business and government.Personal income less personal current taxes equals disposable personal income (DPI). DPI 

measures the income that is available to be either spent or saved. DPI less personal outlays equals personal saving and personal saving as a percentage of DPI is the personal saving rate.The estimates of personal income and outlays for the month are released about one month after the end of that month and are subject to revision in the next few months. 

Corporate profi tsThe quarterly estimates of corporate profi ts provide a comprehensive, consistent measure of the income earned from current production by U.S. corporations. Income consists of receipts that arise from current production less associated expenses. Because of the focus on current production, receipts exclude dividend income and capital gains and expenses exclude bad debts, depletion, and capital losses. 

GDP is estimated as the sum of its fi nal-expenditure components: Personal consumption expenditures (consumer spending), gross private domestic investment (business investment in structures, equipment and software, and inventories), net exports (exports of goods and services less imports of goods and services) and government consumption expenditures and gross investment (government spending). Estimates are provided of the contributions of each of these components to U.S. economic growth.The quarterly estimates of GDP and most other NIPA series are released on the following schedule: “Advance” estimates are released near the end of the fi rst month after the end of the quarter; as more detailed and more comprehensive data become available, “preliminary” and “fi nal” estimates are released near the end of the second and third months, respectively. 

Personal income and outlaysThe monthly estimates of personal income and outlays measure the income U.S. residents receive and how they spend or save it. Personal income is the income received by persons from all sources—that is, from participation in production (such as compensation of employees, income from selfemployment, and rental income) and from current transfer receipts from both government (such as Social Security and Medicare benefi ts) and business (such as pension benefi ts). Personal outlays consists largely of 

personal consumption expenditures, mainly purchases of goods and services by individuThe NIPA estimates of corpora

are on an economic-accountithey contain adjustments to the inventories and of depreciation tfor the effects of price changes oIn this and other ways, they diffefinancial accounting of profits thlies corporate annual reports anaccounting of profits that is repcorporate tax returns. BEA prepmates of corporate profits before tax and by industry. The preliminary estimates of profi ts for the quarter are releathe end of the second month afteof that quarter, as part of the relepreliminary GDP estimates. Revmates are released one month latof the release of the fi nal GDP estifourth-quarter profi ts, the only ethe one released near the end of M

How are GDP and related NIPA estimates used? • By the Administration and Congress to prepare the federal budget estimates and projections and to formulate fi scal policy • By the Federal Reserve Board to formulate monetary policy • By the business community to plan fi nancial and investment strategies • By academia to undertake macroeconomic research How are the estimates of personal income and outlays used? • To obtain the most current information available to track the path of overall U.S. economic activity • To study the relationships among income, spending, and saving • In econometric models to project consumer behavior How are the estimates 

corporate profi ts used

• By Wall Street to track overall U.S. corporate fi nancial health • By industry analysts to track in

fi nancial health • By macroeconomic forecasters to project investment in plant aequipment • By government policymakers to project tax receipts 
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For more information, go to www.bea.govand click on “International”

International The international economic accoeconomy and the global economtrade in goods and services, intertion, and direct investment and thprogram, BEA conducts a numbedirect investment. International transactionaccounts (balance of payThe international transactions (ITAs) present annual and quarterly that summarize the transactions the United States and foreign They consist of a current accountaccount, and a fi nancial account. The current account records egoods and services (for exampshipped from the United States or legal services provided by a Ua client in Japan) and receipts of iU.S.-owned assets abroad (for exaincome earned by a U.S. company operations of a plant it owns in Ccredits—that is, with a plus sign. imports of goods and services ments of income on foreign-ownin the United States as debits—tha minus sign. Unilateral transfergifts to other countries) are reconet basis. The sum of the credits ain the current account is the currebalance. The capital account records capitasuch as debt forgiveness. The fi nancial account records netions of U.S.-owned assets abroad 
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and a half months after the end of that year. Revised estimates are released three months after the preliminary estimates. 

Trade in goods and servicesThe monthly estimates of U.S. trade in goods and services provide up-to-date information on U.S. exports to and imports from foreign countries. The goods estimates, which are largely prepared by the U.S. Census Bureau, are available by detailed product and by selected countries and areas. The service estimates, which are prepared by BEA, are available by major category. The difference between exports and imports is the overall balance on trade in goods and services for the United States.Preliminary trade estimates for the month are jointly released by BEA and the Census Bureau about six weeks after the end of that month. Revised estimates are released one month after the preliminary estimates.

International servicesThe annual estimates of U.S. international sales and purchases of services provide detailed information on two types of transactions. The fi rst type consists of U.S. exports and imports of services recorded in the international transactions accounts. The second consists of (a) sales of services to foreign residents by affi liates owned by U.S. companies and located abroad and (b) purchases of services by U.S. residents from affi liates owned by foreign companies and located in the United States. Thus, the second type of transaction, “sales through affi liates,” is distinguished from the fi rst type, “cross-border trade,” by the fact that it is not a transaction between a U.S. resident and a foreign resident. BEA prepares estimates of U.S. cross-border trade in private services and of sales of services through majority-owned U.S. and foreign affi liates of multinational companies. The inclusion of both cross-border trade and sales through affi liates recognizes the way that multinational companies fashion their worldwide operations and the importance of proximity to customers in the delivery of services.The annual estimates of international services—for the preceding year for crossborder services and for the year b

for sales of services through affi lusually published in a fall issue of of Current Business. International investment position accounts International investment position 

show the cumulative value of Uassets abroad and of foreign-ownin the United States at the end of U.S.-owned assets consist of accstocks of U.S. offi cial assets (e.gserves), other U.S. government aU.S. government loans to foreigments), direct investment (U.S. oof foreign business enterprises)investment (U.S. holdings of foreand bonds), and other private in(e.g., U.S. loans to foreigners). U.S.-sets abroad less foreign-owned asUnited States equals the net intinvestment position of the United SAnnual international investment estimates are released in June of ting year. 

How are the trade estimates 

used?

• By trade policy offi cials to negotiate 

international trade agreements

• By trade association offi cials to 

identify key export markets and to assist in deliberations trade of agreements

• By business managers to assess 

market size and market share and to judge market direction

How are the estimates of 

international services used?

• To assess the size and composition of 

trade in services by country and type of service

• To compare the prevalence of crossborder trade in services to sales of 

services through affi liates

• By trade policy offi cials to negotiate 

international trade agreements

• By business managers to assess 

market size, market share and market trends

How are the internation

investment position acco

used?

• To analyze the size and compos

U.S. investment abroad and of investment in the United States

• To assess the impact of interna

investment (globalization) on teconomy.
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cover the overall activities of their affi liates abroad and foreign-owned U.S. companies. U.S. direct investment abroadThe international transactions data on  foreign affi liates’ transactions with their U.S. parent companies include capital fl ows, which measure the funds that U.S. parents provide to their foreign affi liates, and income, which measures the return on those funds. The direct investment position data are stock data and are cumulative; they measure the total outstanding level of U.S. direct investment abroad. The fi nancial and operating data cover overall activities—such as sales, value added, employment, and capital expenditures—of foreign affi liates and their U.S. parent companies. BEA also produces a separate set of fi nancial and operating data for majority-owned foreign affi liates (U.S. ownership exceeds 50 percent) and their U.S. parents.Summary estimates of the fi nances and operations of U.S. multinational companies for the year are usually released about 16 

Foreign direct investment in the UnitInternational transactions data  affi liates’ transactions with the parent companies include capwhich measure the funds thaparents provide to their U.S. affi income, which measures the those funds. The direct investmenestimates are stock data and are cthey measure the total outstandinforeign direct investment in the UnThe fi nancial and operating data overall activities—such as sales, vaemployment, and capital expendthe U.S. affi liates. BEA also prodon outlays by foreign direct invacquire or establish U.S. busineselected data on the operationnewly acquired or established In addition, in a joint project Census Bureau, BEA periodically detailed industry data on foreiestablishments (plants) in the Uni

months after the end of that year. Detailed estimates are usually released about two or three months later.

How are the data on U.S. 

direct investment abroad used?

• To measure the current-dollar 

value of and returns on U.S. direct investment abroad

• To measure the share of U.S. and 

foreign gross domestic product, employment, exports and imports of goods, capital stock, and research and development accounted for by the U.S. multinational companies

• To analyze the characteristics of 

fi rms, industries, and countries that infl uence the decision to undertake direct investment abroad

• To analyze the impact of U.S. direct 

investment abroad on employment, wages, productivity, and tax revenues
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For more information, go to www.bea.govand click on “Regional”

GDP by StateThe annual estimates of GDP by ssure the value added to U.S. prodthe labor and property in each sby state is the state counterpardomestic product (GDP), the feamost comprehensive measure of duction. Thus, these estimates framework for analyzing the conof regions and states to U.S. econoity. Comparisons of real (infl ation-GDP by state growth with emgrowth can be used to track chlabor productivity.GDP by state is measured as the sdistributions by industry and stacosts incurred and the income producing GDP by state (such as compensation, business taxes, anrate profi ts). Thus, the GDP by state are consistent with the GDP-bestimates in the industry accounas with the GDP estimates in the accounts.Advance GDP by state estimates foare released about six months afteof that year. More detailed estimatavailable four months later. Regional EconThe regional economic accounts tactivity and growth. They provide income, and gross domestic produ
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State personal income The annual and quarterly estimates of state personal income measure the income received by or on behalf of the residents of the state. They are the state counterpart of the national estimates of personal income and they provide a consistent framework for analyzing and comparing individual state economies. The state estimates provide detailed information by type of income (such as wages and salaries, dividend income, and Social Security benefi ts) that is comparable across all states and with the nation as a whole. Estimates of compensation and of earnings by place of work indicate the economic activity of business and government within the state, while estimates of personal income by place of residence provide a measure of the fi scal capacity of the state. BEA also prepares annual state estimates of disposable personal income (personal income less current personal taxes), per capita personal income (personal income divided by total population), and employment. State disposable personal income provides a measure of the income available for spending and saving and state per capita personal income is an indicator of the economic wellbeing of the residents of a state.The estimates of state personal income for the quarter are released about three months after the end of that quarter. Preliminary annual estimates of state personal income are released about three months after the end of that year. Revised and more detailed annual estimates are released about six months later. 

Local area personal incomeThe annual estimates of personal income for local areas measure the income received by or on behalf of the residents of the area. BEA prepares estimates for 3,111 counties, 361 metropolitan areas, 577 micropolitan areas, 29 metropolitan divisions and 122 combined statistical areas, and 179 BEA economic areas. These estimates provide a consistent framework for analyzing and comparing individual local area economies. BEA also prepares annual estimates of per capita local area personal income, which is an indicator of the economic well-being of the residents of an area.The local area estimates also provide detailed information by type of income that is comparable across all local areas and with the state estimates. Estimates of compensation and of earnings by place of work indi- cate the economic activity of bus

government within the area and of personal income by place of provide a measure of fi scal capacarea. The estimates of local area personfor the year are released about 1after the end of that year.On the “Regional” Web page, you ma quick summary of the economy or local area through BEA’s Regioor BEARFacts. BEARFacts are cgenerated narratives for states, metropolitan statistical areas (MBEA economic areas that describe personal income using current growth rates, and a breakdowsources of personal income. 

Regional input-output multipliers The regional economic multiplierthe effects of a change in the outpor more industries in an area on temployment, and labor earnings in industries in that area (for examppact of the relocation of a major bthe economy of the surrounding multipliers are derived using the input-output modeling system (Rare based on estimates of local are

 How are estimates of local 

area income used?

• To measure and track the levels and 

types of incomes that are received by people who live or work in a county, metropolitan area, or BEA economic area

• By federal government agencies in 

econometric models, such as those to project energy use

• By state governments to measure 

the economic base of state planning areas and to project tax revenues and public utility needs

• By academic researchers to conduct 

theoretical and applied economic research

• By businesses, trade associations, 

and labor organizations to conduct market research

• By public and private analysts to 

prepare environmental impact statements required by the National Environmental Policy Act of 1969
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For more information, go to www.bea.govand click on “Industry”

Annual industry accountThe annual industry accounts for tStates consist of the integratdomestic product-by-industry aninput-output accounts. The integthese accounts provides detailed, information on the changing stthe U.S. economy. Together, they annual contributions of private and government to gross domest(GDP), the featured and most cosive measure of U.S. production. Tfl ows of goods and services thrproduction processes of industrithe fi nal uses that make up GDP.GDP-by-industry accountsThe GDP-by-industry accounts pnual estimates of value added, thcounterpart of GDP. Value addesured as an industry’s gross outor receipts and other operating commodity taxes, and inventory minus the intermediate inputs thain the production process (energterials, semi-fi nished goods, and services). BEA prepares estimateindustry’s gross output and intinputs and of the composition Industry EconThe industry accounts tell us abouU.S. economy. They consist of the accounts and the U.S. travel and to
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Annual input-output accountsThe annual input-output (I-O) accounts provide detailed information on the fl ows of goods and services that make up the production processes of industries. They show how industries interact as they provide inputs to and use outputs from each other to produce GDP. The annual I-O accounts are presented in a series of make tables and use tables and supplementary requirements tables that are similar to those described below for the benchmark I-O accounts. Estimates are published for 65 industries. The annual I-O accounts are available about 11 months after the end of each year.

Benchmark input-output accountsThe benchmark input-output (I-O) accounts provide the most comprehensive information available on the fl ows of goods and services to industries for use in their production processes and to fi nal users in the economy. These accounts are prepared at fi ve-year intervals and are based on detailed data from the quinquennial economic censuses conducted by the U.S. Bureau of the Census. Detailed estimates are published for nearly 500 industries. At the heart of the I-O accounts are two basic national-accounting tables. The make tableshows the detailed commodities (goods and services) that are produced by industries. The use table shows the detailed commodities that are used by industries (for example, steel) and those that are consumed by fi nal users (for example, automobiles). The I-O accounts also include four requirements tablesthat facilitate the analysis of relationships between industry production and fi nal demand. Additional tables include t

fl ow table (which shows the inve

structures and in equipment and by industries), the import matrix atables between the I-O accountnational income and product accoThe I-O accounts for a benchmaravailable about fi ve years after tha

U.S. travel and tourism saaccounts Annual U.S. travel and tourism accounts present a detailed picttravel and tourism industries and in the U.S. economy. These accbased on the I-O benchmark accthey are consistent with the integnual industry accounts. The travel and tourism accounts output of travel and tourism indindustry and the expenditures bor visitors, by commodity. They alsestimates of the income generateand tourism and of employment in and tourism industries. These accprepared with the support of thIndustries Offi ce of the U.S. IntTrade Administration.BEA also prepares quarterly estimaput, prices, and employment in thindustries. 

How are the annual I-O 

accounts used?

• To study production capacity and 

productivity across industries

• To examine the direct and indirect 

effects of a strike or a natural disaster on the U.S. economy 

• By the U.S. International Trade 

Commission to measure the impact of trade policies 

• By trade associations to assess 

cross-industry impacts of economic and regulatory changes 

How are the benchmark I-O 

accounts used?

• To estimate the direct and indirect 

effects of changes in fi nal uses on industries and commodities (for example, to estimate the effects of a strike or a natural disaster on the U.S. economy); to estimate the effects of an increase in U.S. exports or in employment

• By business in macroeconomic and 

microeconomic forecasting models

• To provide the data and framework 

used to estimate GDP and its components for the preparation of other economic statistics, such as the travel and tourism satellite accounts
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Executive StaJ. Steven Landefeld, DirRosemary D. Marcuss, DBrent R. Moulton, Associate DRalph H. Kozlow, Associate DSumiye Okubo, Associate DirDennis J. Fixler, Chief StatisticBEA ContactsGeneral inquiriesPublic Information Offi ce, (202) 60Media inquiries(202) 606-2649Congressional affairs (202) 606-2689Inquiries about specifi c BNational Economic AccountGross domestic product: GDPNIWPersonal income and outlays: PINICorporate profi ts: CPNIWD@bea.gFixed assets: FANIWD@bea.gov International Economic AccInternational transactions, investm

internationalaccounts@bea.gov

Regional Economic AccountGross domestic product by state aState and local area personal incomRegional Input-Output Modeling S

rimsread@bea.gov

Industry Account Economic Current industry accounts: currentBenchmark industry input-output Travel and tourism satellite accounThis publication was prepared by 
www.bea.go

1441 L Street, NW, Washington, DC 20230U.S. Department of CommerceEconomic and Statistics Administration(202) 606–9900