1. National Economic Accounts: What’s New and What’s Coming Carol E. Moylan National Economic Accounts Data Users’ Conference October 15, 2007

2. www.bea.gov 2 Purpose of this Users’ Conference  For BEA to hear from you.  For us to provide information to you about:  BEA’s national accounts  BEA’s plans  Issues that BEA faces  To give you an opportunity to meet us.

3. www.bea.gov 3 BEA Strategic Plan  Priorities for national economic accounts:  Addressing data gaps and other shortcomings  Improving consistency and integration with other accounts  Improving consistency with international standards.

4. www.bea.gov 4 What’s New?  Research and development satellite account  Updated estimates released September 2007 (article in October 2007 Survey of Current Business).  First look at industry-level, regional, and international estimates of R&D investment.  Plan for implementation in benchmark input- output accounts and NIPAs for 2012/2013.  Integrated NIPA and Flow of Funds Accounts  Joint project by BEA and Federal Reserve staff.  Article in February 2007 Survey.  Plans for regular update of estimates.

5. www.bea.gov 5 What’s New? (cont’d)  Improved documentation for users:  Release of paper reconciling growth rates between the CPI and the PCE price index.  Release of “Measuring the Economy: A Primer on GDP and the National Income and Product Accounts.” This document is for novice users of the national accounts.  Release of “Introduction to the NIPAs (MP- 1).” This is a more comprehensive introduction to the national accounts.

6. www.bea.gov 6 Ongoing Research Examples include:  Health satellite account  a need for improved measures to guide policy discussions  Classification of personal consumption expenditures  Modernization & improved international comparability  Issues in compensation and profits

7. www.bea.gov 7 What’s Coming?  NIPA comprehensive revision –July 2009 — incorporate 2002 benchmark input- output accounts)  Updated international standards — System of National Accounts (2008)  Beginning in 2010 — flexible annual revisions.

8. www.bea.gov 8 Strategic projects Major conceptual changes that will be fully implemented after 2009:  Capitalize research & development  Scheduled for 2013 comprehensive revision  Production account  Part of updated SNA  Joint work with BLS productivity program  Estimates of labor and capital services for all sectors.