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 2.2% in the third quarter of 2006, according to preliminary estimates released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 2.6%.

The GDP estimates released today are based on more complete source data than were available for the advance estimates issued last month. In the advance estimates, the increase in real GDP was 1.6 %.

The increase in real GDP in the third quarter primarily reflected positive contributions from personal consumption expenditures (PCE), exports, equipment and software, nonresidential structures, 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 deceleration in real GDP growth in the third quarter primarily reflected an acceleration in imports, a larger decrease in residential fixed investment, and decelerations in private inventory investment, in PCE for services, and in state and local government spending that were partly offset by upturns in equipment and software, in PCE for durable goods, and in federal government spending.

Final sales of computers contributed 0.09 %age point to the third-quarter growth in real GDP after contributing 0.04 %age point to the second-quarter growth. Motor vehicle output contributed 0.76 %age point to the third-quarter growth in real GDP after subtracting 0.31 %age point from the second-quarter growth.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 2.1% in the third quarter, 0.1 %age point more than in the advance estimate; this index increased 4.0 % in the second quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 2.0 % in the third quarter, compared with 2.9 % in the second.

Real personal consumption expenditures increased 2.9% in the third quarter, compared with an increase of 2.6% in the second. Real nonresidential fixed investment increased 10.0 %, compared with an increase of 4.4%. Nonresidential structures increased 16.7%, compared with an increase of 20.3 %. Equipment and software increased 7.2 %, in contrast to a decrease of 1.4%.Real residential fixed investment decreased 18.0%, compared with a decrease of 11.1%.

Real exports of goods and services increased 6.3% in the third quarter, compared with an increase of 6.2% in the second. Real imports of goods and services increased 5.3%, compared with an increase of 1.4%.

Real federal government consumption expenditures and gross investment increased 1.5% in the third quarter, in contrast to a decrease of 4.5% in the second. National defense decreased 1.1%, compared with a decrease of 2.0%. Nondefense increased 6.8 %, in contrast to a decrease of 9.3%. Real state and local government consumption expenditures and gross investment increased 2.6%, compared with an increase of 4.0%.

The real change in private inventories added 0.16% age point to the third-quarter change in real GDP, after adding 0.44% age point to the second-quarter change. Private businesses increased inventories $58.0 billion in the third quarter, following an increase of $53.7 billion in the second quarter and an increase of $41.2 billion in the first.

Real final sales of domestic product - GDP less change in private inventories - increased 2.1% in the third quarter, the same increase as in the second.

Gross domestic purchases

Real gross domestic purchases - purchases by U.S. residents of goods and services wherever produced - increased 2.3% in the third quarter, compared with an increase of 2.0% in the second.

Gross national product

Real gross national product - the goods and services produced by the labor and property supplied by U.S. residents - increased 1.9% in the third quarter, compared with an increase of 2.3% in the second. GNP includes, and GDP excludes, net receipts of income from the rest of the world, which decreased $7.4 billion in the third quarter after decreasing $5.6 billion in the second; in the third quarter, receipts increased $10.3 billion, and payments increased $17.7 billion.

Current-dollar GDP

Current-dollar GDP - the market value of the nation''s output of goods and services - increased 4.0%, or $129.8 billion, in the third quarter to a level of $13,327.1 billion. In the second quarter, current-dollar GDP increased 5.9%, or $188.9 billion.

Revisions