The following is the unedited transcript of the news release from the U.S. Bureau of Economic Analysis.


Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 3.9 percent in the third quarter of 2007, according to advance estimates released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 3.8 percent.

The increase in real GDP in the third quarter reflected positive contributions from personal consumption expenditures (PCE), exports, federal government spending, equipment and software, nonresidential structures, private inventory investment, and state and local government spending that were partly offset by a negative contribution from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

The slight acceleration in real GDP growth in the third quarter primarily reflected accelerations in PCE and in exports that were partly offset by an upturn in imports, a larger decrease in residential fixed investment, and a deceleration in nonresidential structures.

Final sales of computers contributed 0.29 percentage point to the third-quarter growth in real GDP after contributing 0.21 percentage point to the second-quarter growth. Motor vehicle output contributed 0.33 percentage point to the third-quarter growth in real GDP after contributing 0.03 percentage point to the second-quarter growth.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.6 percent in the third quarter, compared with an increase of 3.8 percent in the second. Excluding food and energy prices, the price index for gross domestic purchases increased 1.7 percent in the third quarter, compared with an increase of 1.5 percent in the second.

Real personal consumption expenditures increased 3.0 percent in the third quarter, compared with an increase of 1.4 percent in the second. Durable goods increased 4.4 percent, compared with an increase of 1.7 percent. Nondurable goods increased 2.7 percent, in contrast to a decrease of 0.5 percent. Services expenditures increased 2.9 percent, compared with an increase of 2.3 percent.

Real nonresidential fixed investment increased 7.9 percent in the third quarter, compared with an increase of 11.0 percent in the second. Nonresidential structures increased 12.3 percent, compared with an increase of 26.2 percent. Equipment and software increased 5.9 percent, compared with an increase of 4.7 percent. Real residential fixed investment decreased 20.1 percent, compared with a decrease of 11.8 percent.

Real exports of goods and services increased 16.2 percent in the third quarter, compared with an increase of 7.5 percent in the second. Real imports of goods and services increased 5.2 percent, in contrast to a decrease of 2.7 percent.

Real federal government consumption expenditures and gross investment increased 6.8 percent in the third quarter, compared with an increase of 6.0 percent in the second. National defense increased 9.7 percent, compared with an increase of 8.5 percent. Nondefense increased 0.9 percent, the same increase as in the second. Real state and local government consumption expenditures and gross investment increased 2.0 percent, compared with an increase of 3.0 percent.

The real change in private inventories added 0.36 percentage point to the third-quarter change in real GDP after adding 0.22 percentage point to the second-quarter change. Private businesses increased inventories $15.7 billion in the third quarter, following increases of $5.8 billion in the second quarter and $0.1 billion in the first.

Real final sales of domestic product -- GDP less change in private inventories -- increased 3.5 percent in the third quarter, compared with an increase of 3.6 percent in the second.

Gross domestic purchases

Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 2.8 percent in the third quarter, compared with an increase of 2.4 percent in the second.

Disposition of personal income

Current-dollar personal income increased $165.2 billion (5.8 percent) in the third quarter, compared with an increase of $150.0 billion (5.3 percent) in the second. Personal current taxes increased $14.0 billion in the third quarter, compared with an increase of $30.9 billion in the second.

Disposable personal income increased $151.2 billion (6.1 percent) in the third quarter, compared with an increase of $119.1 billion (4.8 percent) in the second. Real disposable personal income increased 4.4 percent, compared with an increase of 0.6 percent.

Personal outlays increased $129.1 billion (5.2 percent) in the third quarter, compared with an increase of $151.7 billion (6.3 percent) in the second. Personal saving -- disposable personal income less personal outlays -- was $86.5 billion in the third quarter, compared with $64.4 billion in the second.

The personal saving rate -- saving as a percentage of disposable personal income -- was 0.8 percent in the third quarter, compared with 0.6 percent in the second. Saving from current income may be near zero or negative when outlays are financed by borrowing (including borrowing financed through credit cards or home equity loans), by selling investments or other assets, or by using savings from previous periods.

Current-dollar GDP