Lumber's nominal dimensions are larger than the actual standard dimensions of finished lumber. Historically, the nominal dimensions were the size of the green (not dried), rough (unfinished) boards that eventually became smaller finished lumber through drying and planing (to smooth the wood). Today, the standards specify the final finished dimensions and the mill cuts the logs to whatever size it needs to achieve those final dimensions. Typically, that rough cut is smaller than the nominal dimensions because modern technology makes it possible and it uses the logs more efficiently. For example, a "2x4" board historically started out as a green, rough board actually 2 inches by 4 inches. After drying and planing, it would be smaller, by a nonstandard amount. Today, a "2x4" board starts out as something smaller than 2 inches by 4 inches and not specified by standards, and after drying and planing is reliably 1 1⁄2 inches x 3 1⁄2 inches.
Early standards called for green rough lumber to be of full nominal dimension when dry. However, the dimensions have diminished over time. In 1910, a typical finished 1-inch- (25 mm) board was 13⁄16 in (21 mm). In 1928, that was reduced by 4%, and yet again by 4% in 1956. In 1961, at a meeting in Scottsdale, Arizona, the Committee on Grade Simplification and Standardization agreed to what is now the current U.S. standard: in part, the dressed size of a 1 inch (nominal) board was fixed at 3⁄4 inch; while the dressed size of 2 inch (nominal) lumber was reduced from 1 5⁄8 inch to the current 1 1⁄2 inch.[8]
Dimensional lumber is available in green, unfinished state, and for that kind of lumber, the nominal dimensions are the actual dimensions.