Corporate Profits

Name: Corporate Profits
Creator: FRASER
Keywords: Economic Data, Economic indicators, Economic conditions, United States

PREVIOUS | NEXT

In order to view this PDF, you must have Javascript enabled in your browser.
The following is plain-text output generated by Optical Character Recognition. tflst Congress 1st Session t i ouis P Hic libra Economic Indicators SEPTEMBER 1949 Prepared for the Joint Committee on the Economic Report by the Council of Economic Advisers UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON JOINT COMMITTEE ON THE ECONOMIC REPORT Created pursuant to Sec 5 a of Public Law 304 79th Cong JOSEPH C O MAHONEY Wyoming Chairman EDWARD J HART New Jersey Vice Chairman FRANCIS J MYERS Pennsylvania WRIGHT PATMAN Texas JOHN J SPARKMAN Alabama PAUL H DOUGLAS Illinois ROBERT A TAFT Ohio RALPH E FLANDERS Vermont ARTHUR V WATKINS Utah WALTER B HUBER Ohio FRANK BUCHANAN Pennsylvania JESSE P WOLCOTT Michigan ROBERT F RICH Pennsylvania CHRISTIAN A HERTER Massachusetts THEODORE J KREPS Staff Director GROVER W ENSLEY Associate Staff Director JOHN W LEHMAN Clerk PUBLIC LAW 120 81sT CONGRESS CHAPTER 237 IST SESSION JOINT RESOLUTION S J Res 55 To print the monthly publication entitled Economic Indicators Resolved by the Senate and House of Representatives of the United States of America in Congress assembled That the Joint Committee on the Economic Report be authorized to issue a monthly publication entitled Economic Indicators and that a sufficient quantity be printed to furnish one copy to each Member of Congress the Secretary and the Sergeant at Arms of the Senate the Clerk Sergeant at Arms and Doorkeeper of the House of Representatives two copies to the libraries of the Senate and House and the Congressional Library seven hundred copies to the Joint Committee on the Economic Report and the required number of copies to the Superintendent of Documents for distribution to depository libraries and that the Superintendent of Documents be authorized to have copies printed for sale to the public Approved June To the Members of Congress From the time the Joint Committee on the Economic Report was established its members realized that one of its basic needs was a concise and meaningful picture of current economic trends and developments Fortunately the joint committee found that Economic Indicators a set of basic charts and tables compiled monthly by the Council of Economic Advisers admirably filled this need While this material was prepared originally for the use of the President the Council and other officials in the executive offices the Council made it available to the joint committee Other Members of Congress also expressed an interest in being able to obtain a quick picture of current economic facts without having to go through voluminous and specialized documents In addition businessmen farm leaders labor organizations and representatives of the press and radio indicated their desire for this information Accordingly the joint committee provided the Congress and the public with a limited number of copies of Economic Indicators as a committee print pending final action on authorizing the publication on a more permanent basis As is indicated above such legislation has now been passed and the committee will issue the report on a regular monthly basis Comments or suggestions with respect to possible improvements in this presentation will always be welcome 11 Chairman Joint Committee on the Economic Report Letter of Transmitted Hon JOSEPH C O MAHONEY Chairman Joint Committee on the Economic Report United States Congress Washington D C DEAR SENATOR The Council of Economic Advisers is happy to cooperate with the Joint Committee on the Economic Report in making Economic Indicators available to the Congress as a whole and to the general public in accordance with Public Law 120 Eightyfirst Congress In carrying out its mandate under the Employment Act of 1946 the Council has found it desirable to bring together in concise and graphic fomf the most important facts showing current trends in the Nation s economy Thus the Executive Office is in a better position to point up the key problems of national economic policy and to promote the improvement and coordination of the Federal Government s widespread statistical services In this undertaking the Council has the full cooperation of the several agencies of the Federal Government that collect statistical material In many cases these agencies supply advance estimates for use in Economic Indicators While the charts are drawn through the courtesy of the Graphics Unit in the Office of the Secretary of Commerce the Council takes complete responsibility for the graphic presentation This material has proven useful to the President the Council the executive departments and the Congress Furthermore its usefulness to the general public has been impressed upon us particularly by the representatives of business labor agriculture and consumer organizations with whom we regularly consult We believe that the Congress is performing a service of real value by making this material available Sincerely yours Chairman Chairman Qf ff iU Contents THE NATION S ECONOMIC BUDGET Page The Nation s Economic Budget 1 PRICES Consumers Prices Wholesale Prices Prices Received and Paid by Farmers Stock Prices EMPLOYMENT Labor Force Employment in Business and Government Average Weekly Hours Work Stoppages PRODUCTION AND BUSINESS ACTIVITY Industrial Production Production of Selected Durable Manufactures Production of Selected Nondurable Manufactures Weekly Production Selected Indicators New Construction New Housing Starts Expenditures for New Plant and Equipment New Corporate Security Issues Inventories and Sales Merchandise Exports and Imports PURCHASING POWER National Income Corporate Profits Personal Income Consumer Income Spending and Saving Per Capita Income Average Hourly Earnings Average Weekly Earnings Farm Income Personal Consumption Expenditures Consumer Credit MONEY BANKING AND FEDERAL FINANCE Bank Loans and Investments Money Supply Federal Cash Receipts From and Payments to the Public IV THE NATION S ECONOMIC BUDGET THE NATION S ECONOMIC BUDGET The Nation s Economic Budget total declined slightly from 1st to 2nd quarter of 1949 The fall in business investment due mainly to inventory liquidation more than o f f s e t the rise in Government expenditures 1949 1st Quarter TOTAL Gross National Product BILLIONS OF DOLLARS EXCESS OF EXPENDITURES RECEIPTS CONSUMERS Transfer payments INCOME CON j SUMER SAVING 1779 BUSINESS EXCESS OF INVESTMENT INTERNATIONAL EXCESS OF RECEIPTS GOVERNMENT I Federal state and local CASH I SURPLUS T Transfer payments 1949 TOTAL 2nd Quarter BILLIONS OF DOLLARS Gross National Product CONSUMERS Transfer payments INCOME CONSUMER SAVING 1782 BUSINESS 28 2 JJj EXCESS OF INVESTMENT INTERNATIONAL EXCESS OF INVESTMENT 0 8 GOVERNMENT Federal state and local SS 6 J a Transfer payment Li L I CASH DEFICIT 1 PRICES CONSUMERS PRICES Consumers prices declined in July to the lowest point since April 1948 and to 3 3 percent below their postwar peak A drop in food prices accounted for most of the decline Apparel and housefurnishings prices also fell while other prices showed little change PERCENT OF 1935 39 AVERAGE PERCENT OF 1935 39 AVERAGE SOURCE DEPARTMENT OF LABOR Period 1939 monthly average 1940 monthly average 1941 monthly average 1942 monthly average monthly average 1944 monthly average 1945 monthly average 1946 monthly average 1947 monthly average 1948 monthly average 1948 July Au gust September October November December 1949 January February March April May j June Julv All items Food NOTE Prices are for moderate income families in large cities Source Department of Labor Apparel Rent Fuel electricity and refrigeration House furnishings Miscellaneous WHOLESALE PRICES W h o l e s a l e prices declined slightly during August primarily because of a drop in farm prices Other wholesale prices registered little net change during the month PERCENT OF 1926 AVERAGE PERCENT OF 1926 AVERAGE OTHER THAN FARM PRODUCTS AND FOODS I I i l l I I I I I 1945 SOURCE LATEST DAT DEPARTMENT OF L A B O R LOTTED MONTHI Y AUGUST All commodities Period 1941 monthly average 1942 monthly average 1946 monthly average June 1947 monthly average 1948 monthly average 1948 July August September October November December 1949 January February March April May June Julv 1 August Week ended August Farm products Foods S 2 Other than farm products and foods uao Estimate based on change in weekly index NOTE The weekly index presented here is a revised index which permits direct comparison with the monthly index It is not comparable with the old weekly index which does not permit such a comparison Source Department of Labor PRICES RECEIVED AND PAID BY FARMERS With decreases in most major commodity groups from July to August the index of prices received by farmers and the parity ratio continued the decline that started in April PERCENT OF AVERAGE PERCENT OF 1910 14 AVERAGE P R I C E S RECEIVED 150 PARITY RATIO I I I I I J F M A M J I I I I I I I I I I I I I I I I I I I I I I I J A S O N D J F M A M J J A S O N D J F M A M J I I I I I I J A S O N D RATIO OF PRICES RECEIVED TO PRICES PAID INTEREST AND TAXES COUNCIL OF ECONOMIC ADVISERS SOURCE DEPARTMENT OF AGRICULTURE Prices paid by Prices received l farmers includ Parity ratio 8 ing interest by farmers and taxes 2 Period 1939 monthly average 1941 monthly average 1942 monthly average 1943 monthly average 1944 monthly average 1945 monthly average 1946 monthly average 1947 monthly average 1948 monthly average 1948 July August September October No vember December January February March April May June July August 1 August 1909 July Ratio of prices received to prices paid interest and taxes Source Department of Agriculture In STOCK PRICES Stock prices of industrials and utilities after reaching a new 1949 peak in August declined slightly in the last weeks of the month PERCENT OF AVERAGE PERCENT OF AVERAGE W E E K L Y AVERAGE 125 RAILROADS V UTILITIES V S J J A S O N D J F 1948 M A M J J A 1949 SOURCE STANDARD AND POOR S CORPORATION Combined index 1 Period Weekly average July August September October November December 1949 January February March April May June Julv August Week ended August Industrials Railroads Utilities i c 97 A F i 1 Combined index prior to June was based on 402 common stocks and included 354 industrials 20 railroads and 28 utilities thereafter 416 common stocks are represented with 365 industrials 20 railroads and 31 utilities Source Standard Poor s Corporation S O N O EMPLOYMENT Unemployment declined 400 000 in August Totai civilian employment rose a quarter of a million The increase of nearly a million and a half in nonagricultural industries was almost o f f s e t by a decline in agricultural employment MILLIONS OF PERSONS MILLIONS OF PERSONS UNEMPLOYMENT MAGNIFIED r SCALE J F M A MONTHLY A V E R A G E COUNCIL OF ECONOMIC ADVISERS SOURCE DEPARTMENT OF COMMERCE Thousands of persons 14 years nf age and over Total labor force including armed forces Period 1 939 monthly average 1944 monthly average 1946 monthly average 1947 monthly average 1948 monthly average 1948 July August September October November December January February March April Mav June July August Civilian employment 1 Total In nonagricultural industries In agriculture Armed forces Unemployment Includes part time workers and those who had jobs but were not at work for such reasons as vacation illness bad weather temporary lay off and industrial disputes NOTE Detail will not necessarily add to totals because of rounding Source Department of Commerce r IN GOVEI NMICMT Employment continued to hold steady in nondurable manufacturing industries in July but declined further in durable manufacturing Contract construction employment while slightly below last year continued to increase seasonally MILLIONS OF WAGE MILLIONS OF WAGE AND S A L A R Y WORKERS AND S A L A R Y WORKERS MONTHLY AVERAGE v A a x RAD 1 A x IRAR LE FACT o URINGx I I P NCT INAN CE AND SERVICE S f s MANUFACTURING nr u ua GOV ERNNflENT T 4 X K O o o oo j TRANSPORTATION AND PU8LI C UT LITIES CONTRACT COf STRUCTION s x V G X ININ r I M M 1946 M 1 J A S 0 J F M A M J M N D M J F M A M J J A i S l O M M l N D J F M A M M J J M A S 0 1 O N D Depor me Thousands of wage and salary workers l Durable manufacturing Period Nondurable manufacturing Trade Transportation and Finance and Government Federal public service State local utilities Contract construction Mining June July August September October November December Januarv February March April 2 May June 2 July monthly average 1943 monthly average 1 946 monthly average 1947 monthly average 1948 monthly average Includes all full and part time wage and salary workers in nonagricultural establishments who worked or received pay during the pay period ending nearest the 15th of the month Excludes proprietors self employed persons domestic servants and personnel of the armed forces Total derived from this table not comparable with estimates of nonagricultural employment of the civilian labor force reported by the Department of Commerce p 6 which include proprietors self employed persons and domestic servants which count persons as employed when they are not at work because of industrial disputes and which are based on an enumeration of population whereas the estimates in this table are based on reports from employing establishments 2 Preliminary estimate Source Department of Labor AVERAGE WEEKLY HOURS Average weekly hours of work in manufacturing industries remained practically unchanged in July but were about 1 hour below July 1948 HOUR S PER WEEK HOURS PER WEEK ALL MANUFACTURING INDUSTRIES RETAIL TRADE 50 50 MONTHLY AVERAGE J 40 S N TTTT TTTI l i I I 1 I I 1I I 1947 I M I I I II I I i 1948 I M 1 I i J J l l i 1 i 1i i I i I BUILDING CONSTRUCTION BITUMINOUS COAL MINING 50 50 vu r ifr xN v J s 25 T7T777TTT I I I 1 1 1 II A I V y s j W I 1 1 I 1 1 1 M f i L 1 1 1 1 i I 1i i i 1 i i l l I SEE NOTE ON TABLE SOURCE DEPARTMENT OF LABOR COUNCIL OF ECONOMIC ADVISERS Hours per week selected industries All manufacturing industries Period 1939 monthly average 1941 monthly average 1944 monthly average 1945 monthly average 1946 monthly average 1947 monthly average 1948 monthly average 1948 June July August September October November December 1949 Januarv February March April 3 May June 33 July Retail trade Data prior to 1948 not exactly comparable with later data Based on pay period during coal stoppage Preliminary estimate Not available series being revised Source Department of Labor 8 Bituminous coal mining Building construction l WORK STOPPAGES With no work stoppages of important size in July man days of idleness dropped sharply MILLIONS OF MAN DAYS IDLE MILLIONS OF MAN DAYS IDLE I 5 15 M Number of stoppages Period 1 M J J A S O OF ECONOMIC SOURCE DEPARTMENT OF LABOR June Julv August September October November December 1949 Januarv l l February March April l i May June L Julv A Beginning in period Preliminary estimate Source Department of Labor Jn effect during month Workers involved in stoppages Beginning in period thousands AGO Man days idle during period Tn effect during month thousands Monthly average thousands Percent of estimated vrorking tiirif QOO i o N D PRODUCTION AND BUSINESS ACTIVITY INDUSTRIAL PRODUCTION Preliminary estimates indicate that industrial production in August fully recovered the 4 percent drop in July which had been due in part to the spreading practice of plant wide vacations especially in nondurables This was the first rise since October 1948 PERCENT OF 1935 39 AVERAGE Poifrts in Total Index P SOURCE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM seasonally adjusted Points in total index average for total 100 Indexes Period monthly average 1943 monthly average 1945 monthly average monthly average 1947 monthly average 1948 monthly average 1948 July August September October November December January February March A pril Mav June 1 July August Manufactures Total industrial Minerals production Total Durable Nonduragoods ble goods Manufactures Durable goods Nondura Minerals ble goods Preliminary estimate Part of the July decline especially in nondurables was due to the spreading practice of plant wide vacations The seasonal adjustment factor has not been revised to take account of this http fraser stlouisfed org Source Board of Governors of the Federal Reserve System Federal Reserve Bank of St Louis PRODUCTION OF SELECTED DURABLE MANUFACTURES n July production of most manufactured durable goods declined Output of iron and steel again fell sharply but made some recovery in August July production of lumber and products and machinery was lower but nonferrous metals was about the same as in June PERCE NT OF 1935 39 A V E R A G E PERCENT OF 1935 39 A V E R A G E IRON AND STEEL LUMBER AND ry Y i 1 I luJ J 1 L Mill 48 i i i M 1 1 ii i i ir I i i 1947 SEASONALLY L M 1JM 1 I MACHINERY 350 I i 300 V 250 I M i l l 48 1 i 1 M 1 II i 1 1 1 II j i J i j L i NONFERROUS METALS AND PRODUCTS MONTHLY Mill AVERAGE i i i i i i i i i ADJUSTED 200 i M 1111111i 1948 PRODUCTS 250 r S 1 M II 1 1 M II M M 1 1 A t V S xT A V 1 1 1 M 1 1 M M M l l l JJJJ i I M I i i i i ii SOURCE BOARD OF GOVERNORS OF THE FEDERAL RESERVE S Y S T E M seasonally adjusted Iron and steel Period monthly average 1 943 monthly average monthly average 1946 monthly average 1947 monthlv average 1948 monthly average 1948 June July August September October November December January February March April May June July Nonferrous metals and products Lumber and products Machinery Preliminary estimate See page 10 footnote 1 Source Board of Governors of the Federal Reserve System n PRODUCTION OF SELECTED NONDURABLE MANUFACTURES Production of textiles ond chemicals dropped in July Food processing and petroleum refining remained at about their June rates PERCE S T CF 1935 39 AVERAGE PERCENT OF 1935 39 AVERAGE TEXTILES AND PRODUCTS PETROLEUM AND COAL PRODUCTS MONTHLV MONTHLY AVERAGE A J 1 I j P v 1 1 1 I I 1 1 1 1 I1 48 I II I 1 1 I I p II 1 f I MANUFACTURED FOOD PRODUCTS JV AVERAGE I CHEMICAL 1949 PRODUCTS MONTHLY AVERAGE MONTHLY JL AVERAGE j l J I 1 J i iii II 1 I II i 42 I 1 44 I II M 1 I I 1 II 1947 I 1 I1 1 1 I SOURCE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM COUNCIL 1949 OF ECONOMIC seasonally adjusted Textiles and products Period Petroleum and coal products Manufactured food products Chemical products monthly average 1943 monthly average 1945 monthly average 1946 monthly average 1947 monthly average 1948 monthly average June July August September October November December J949 January Februar March April May June July i Preliminary estimate See page 10 footnote 1 Source Board of Governors of the Federal Reserve System 12 ADVISERS WEEKLY PRODUCTION SELECTED INDICATORS Steel production in August recovered the July drop and by early September was back to the mid June rate Electric power continued above rates of a year ago Bituminous coal mining remained at a low rate as the shortened workweek continued The August output of cars and trucks was the highest since April 1929 MILLIONS OF TONS 3 BILLIONS OF KILOWATT HOURS STEEL ELECTRIC POWER A S 0 A S N O O MILLIONS OF SHORT TONS 3 0 M J J N A D S 0 N D SOURCES AMERICAN IRON AND STEEL INSTITUTE EDISON ELECTRIC INSTITUTE DEPARTMENT OF THE INTERIOR WARD S AUTOMOTIVE REPORTS Steel thousands of net tons Period Weekly average Week ended 1948 Aug Sept Aug Sept Cars and trucks number Electric power Bituminous coal by utilities thousands of millions of kilowatt hours short tons Daily average for week Sources American Iron and Steel Institute Edison Electric Institute Department of the Interior and Ward s Automotive Reports 13 NEW CONSTRUCTION The value of new construction continuing to increase in August was 2 2 percent above July and less than 2 percent below the August 1948 peak MILLIONS OF DOLLARS MILLIONS OF DOLLARS 1 000 i iI i I Fl I 1939 I J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N INCL JDES PUBLIC RESIDENTIAL CONSTRUCTION SOURCES DEPARTMENT OF COMMERCE AND DEPARTMENT OF LABOR Millions of dollars Private construction Total new construction Period 1939 monthly average 1942 monthly average 1944 monthly average 1946 monthly average 1947 monthly average 1948 monthly average 1948 June July August September October November December 1949 January February March April May June Julv August 2 1 2 Residential nonfarm Includes public residential construction Preliminary estimate NOTE Detail will not necessarily add to totals because of rounding Sources Department of Commerce and Department of Labor Total private Other Federal State and local J D NEW HOUSING STARTS Housing starts declined slightly in July to 96 000 or about the same level as in July 1948 A total of 549 000 new houses started during the first 7 months of 1949 was just 4 percent below the number started during the same period of last year T H O U S A N D S OF UNITS 125 J THOUSANDS OF UNITS 125 F M A M J SOURCE DEPARTMENT OF LABOR NOMIC A D V I S E R S New nonfarm units started Month 1947 January February March April May June July August September October November December Total Monthly average Preliminary estimate Source L Department of Labor 15 EXPENDITURES FOR NEW PLANT AND EQUIPMENT Estimated nonagricultural business expenditures for plant and equipment in 2nd quarter of 1949 showed for the first time in the postwar period no gain over the corresponding quarter of the previous year Anticipated expenditures in 3rd quarter of this year run lower with electric and gas utilities the only field to show a continued gain BILLIONS OF DOLLARS 25 BILLIONS OF DOLLARS 25 ANN UAL TOTALS 15 TRANSPORTATION AND ELECTRIC AND GAS I UTILITIES SOURCES SECURITIES AND EXCHANGE C O M M I S S I O N AND DEPARTMENT OF COMMERCE COUNCIL OF ECONOMIC ADVISERS Millions of dollars annual rates not adjusted for seasonal Period Total Manufacturing Mining Transportation Railroad First quarter Second quarter Third quarter Fourth quarter 1948 First quarter Second quarter Third quarter Fourth quarter 1949 First quarter 3 Second quarter Third quarter Other Electric and Commercial gas utilities and miscellaneous Excludes agriculture Commercial and miscellaneous include trade service finance and communication Preliminary estimates of actual expenditures Estimates based on anticipated capital expenditures of business NOTE These figures do not agree with the totals included in the gross national product estimates of the Department of Commerce principally because the latter cover agricultural investment and also certain equipment and construction outlays charged to current expense Figures for 1939 44 are Federal Reserve Board estimates based on Securities and Exchange Commission and other data Detail will not necessarily add to totals because annual rates are based on quarterly figures rounded to the nearest Sources Securities and Exchange Commission and Department of Commerce except as noted 16 NEW CORPORATE SECURITY ISSUES Total proceeds from new corporate security issues more than doubled in the 2nd quarter reflecting a rise in both fixed and working capital financing BILLIONS OF D O L L A R S BILLIONS OF D O L L A R S SOURCE SECURITIES AND EXCHANGE COMMISSION Millions of dollars Proposed uses of net proceeds Estimated net proceeds Period New money Total quarterly average quarterly average quarterly average quarterly average quarterly average quarterly average First quarter Second quarter Third quarter Fourth quarter 1949 First quarter 2 Second quarter Working capital Third quarter Fourth quarter Plant and equipment Retirement of debt and stock l Includes small amount for other purposes Preliminary estimate NOTE Detail will not necessarily add to totals because of rounding Source Securities and Exchange Commission 17 INVENTORIES AND SALES July was marked by a sharp drop in manufacturing and wholesale sales largely because of seasonal factors Retail sales declined moderately Manufacturing and department store inventories continued to decline Little change was reported in other trade inventories BILL IONS OF DOLLARS BILLIONS Of DOLLARS WHOLESALE RETAIL 20 20 MONTHLY A V E R A G E INVEr T JRIES y f s I0 5 au tS U T BILL IONS 4E 44 s L 46 M I i M i iiii1 ii i ii j T DRIES y J l 1 M v y iNVEr j 200 s LEIS i s S7v Cx T XL A r DEPARTMENT STORES OF D O L L A R S INVEf 20 I i 11 1 i 1 l MANUFACTURING 40 E7 1 NVE T JRIES f 1 1 J J I J J I I I I 1 I I TC RIES l 11 1 I 111 I l I I ML I Mill i i 1 1 i 1i i i i i U R C E DEPARTMENT OF COMMERCE AND BOARD OF G O V E R N O R S OF THE FE D E R A L R C S E R V E S Y S T E M Inventories 3 Manufacturing 1 Retail 2 Wholesale l Period Sales 4 Inventories 3 Sales 4 Inventories 3 Sales Sales Book value end of period Indexes computed from data on retail value of sales for Monthly average for year and total month and retail book value of inventories end of period 6 for month Preliminary estimate Sources Department of Commerce and Board of Governors of the Federal Reserve System Not adjusted for seasonal variation Adjusted for seasonal variation Inventories seasonally adjusted 6 Millions of dollars 1939 L941 L943 L L948 July August September October November December 949 January February March April6 May June0e July Department stores MERCHANDISE EXPORTS AND IMPORTS Exports dropped sharpfy in July The value of imports also dropped MILLIONS OF DOLLARS 1 600 MILLIONS OF DOLLARS i M 1948 A M J J A S 0 i f V A M J J A 5 O N D 1947 aQJRCES DEPARTMENT OF COMMERCE DEPARTMENT OF THE ARMY AND DEPARTMENT OF THE NAVY Millions of dollars Exports Period 1936 38 monthly average 1943 monthly average 1945 monthly average 1946 monthly average 1947 monthly average 1948 monthly average 1948 June July AugustSeptember October November December Janu ary February March April May June July Imports f Excess of exports Recorded merchandise exports including reexports and civilian supplies for occupied areas Recorded general merchandise imports Sources Department of Commerce Department of the Army and Department of the Navy 19 PURCHASING POWER NATIONAL INCOME The revised series on national income shows a 12 1 billion drop or 5 percent from the peak in 4th quarter 1948 to 2nd quarter IS49 Corporate profits including the inventory valuation adjustment accounted for onehalf of the decline while the compensation f employees accounted for about one fourth B I L L I O N S OF DOLLARS 250 B I L L I O N S OF DOLLARS 250 ANNUAL TOTALS ANNUAL RATE S S E A S O N A L L Y ADJUSTED TOTAL NATIONAL INCOME FITS AND INVENTORY VALUATION ADJUSTMENT NET INTEREST PROPRIETORS ANDRENTAL INCOME COMPENSATION OF EMPLOYEES S O U R C E DEPARTMENT OF C O M M E R C E Billions of dollars Total national income Period Corporate profits and inventory valuation adjustment Compensation of employees Proprietors and rental income Net interest Total Profits before taxes Inventory valuation adjustment Annual rates seasonally adjusted 1948 First quarter Second quarter Third quarter Fourth quarter 1949 First quarter Second quarter Preliminary estimates Estimates by Council of Economic Advisers based on preliminary data NOTE Detail will not necessarily add to totals because of rounding Source Department of Commerce except as noted CORPORATE PROFITS Corporate profits reached their peak rate in 3rd quarter of 1948 and have declined steadily since then according to revised estimates In 2nd quarter of 1949 they were 24 8 billion annual rate or 11 8 billion below the peak Change in replacement costs of inventories was equivalent to two thirds of the drop BILLIONS OF DOLLARS BILLIONS OF DOLLARS SOURCE DEPARTMENT OF COMMERCE E X C E P T AS N O T E D Billions of dollars Period Corporate profits before taxes Corporate tax liability Corporate profits after taxes Total Dividend payments Undistributed profits Annual rates seasonally adjusted 1948 First quarter Second quarter Third quarter Fourth quarter First quarter l Second quarter Estimates by Council of Economic Advisers based on preliminary data NOTE No allowance has been made for inventory valuation adjustment See p 20 for profits before taxes and inventory valuation adjustment Figures for 1944 48 are revised and do not agree with data previously published in the Indicators See Survev of Current Business July 1949 for details of the revisions Detail will not necessarily add to totals because of rounding Source Department of Commerce except as noted 21 PERSONAL INCOME Personal income after rising slightly in May dropped moderately in June and still further in July reaching a level about 3 percent below the high of December 1948 The biggest July drop was in farm income part of proprietors and rental income BILLIONS DOLLARS BILLIONS OF DOLLARS A N N U A L RATES SEASONALLY ADJUSTED ANNUAL TOTALS TOTAL x PROPR I ETORS A NO1 RENT SALARIES WAGES M i ij i i i i tI I I 4 J A S O N D J 1947 SOURCE F M A M J J A S O N I D J F 1948 M A M J J A S O N 0 I I Billions of dollars Total personal income Period Salaries wages Proprietors Dividends and other and rental and personal income interest labor income Transfer payments Annual rates seasonally adjusted 1948 June July August September October November December 1949 January February March April jVIay June l July Preliminary estimate NOTE Detail will not necessarily add to totals because of rounding Source Department of Commerce 22 C O U N C I L OF ECONOMIC ADVISERS D E P A R T M E N T OF COMMERCE J F M A M J CONSUMER INCOME SPENDING AND SAVING According to revised estimates disposable income dropped slightly from 1st to 2nd quarter while expenditures rose slightly thus reducing the rate of saving by 1 billion BILLIONS OF DOLLARS BILLIONS OF DOLLARS SOURCE DEPARTMENT OF COMMERCE Billions of dollars Disposable personal income Period Less Personal consumption expenditures Equals Personal saving Annual rates seasonally adjusted 1948 First quarter Second quarter Third quarter Fourth quarter 1949 First quarter 2 Second quarter Income less taxes Preliminary estimates NOTE Detail will not necessarily add to totals because of rounding Figures for 1942 48 are revised and do not agree with data previously published in the Indicators Survey of Current Business July 1949 for details of the revisions Source Department of Commerce See 23 PER CAPITA INCOME Per capita disposable income fell about 1 percent from 1st to 2nd quarter of 1949 as measured in current dollars or in terms of real purchasing power DOLLARS 1 600 ANNUAL R A T E S SEASONALLY A D J U S T E D 1 200 I I Per capita disposable personal income l Current 1948 dollars dollars Annual rates seasonally adjusted 1948 First quarter Second quarter Third quarter Fourth quarter 1949 First quarter Second quarter Consumers price index Not adjusted for seasonal variation Income less taxes Current dollars divided by the consumers price index on the base The consumers price index has been roughly adjusted to take account of the understatement from December 1941 February 1947 This adjustment is in line with the report of the Mitchell Committee The unadjusted index will be found on page 2 4 Preliminary estimates Sources Department of Commerce and Department of Labor 24 COUNCIL OF ECONOMIC ADVISERS Period I SOURCE DEPARTMENT OF COMMERCE AND D E P A R T M E N T OF LABOR AVERAGE HOURLY EARNINGS Average hourly earnings in manufacturing industries rose slightly in July recorded according to preliminary data DOLL ARS PER HOUR DOLLARS PER HOUR ALL MANUFACTURING INDUSTRIES RETAIL TRADE MONTHLY y TT f AVERAGE 1 50 f 0 LLARS to the highest level yet C 0 LARS S CUF RfINT TTTi M M i TTTiTTTTTi D OL 1947 n i TTT M TTTTT y I Maa LA C n ENT DOLLARS CURF Ern DOLLARS i TiTTTTT V X J CUF R I948y DO LLARS OS Vl 42 n BUILDING CONSTRUCTION BITUMINOUS COAL MINING jpmrn I i I i i i I TTl rTHTl DOLLARS 50 n lTTTTTT n mmtHt hr 1 00 DOLLARS CURRE MT nTTTTTi M I I I nTfi TnTfTi 1 1 iTTi I I M I M i 111 M I 1949 COUNCIL OF ECONOMIC A D V I S E R S SOURCE DEPARTMENT OF LABOR Selected industries Manufacturing Bituminous coal mining Retail trade Building construction Period Current dollars monthly monthly monthly monthly monthly monthly monthly average average average average average average average dollars 2 Current dollars 1948 dollars 2 Current dollars 1948 dollars June July August September October November December January February March April 3 Mav June 33 Julv dollars 2 Current dollars Data prior to 1948 not exactly comparable with later data Current dollars divided by consumers price index on the base Preliminary estimate Not available series being revised Digitized Sourcet Department of Labor for FRASER See note 3 to table on pa ee AVERAGE WEEKLY EARNINGS Average weekly earnings in manufacturing industries leveled off in July according to preliminary returns DOLLARS PER WEEK DOLLARS PER WEEK BITUMINOUS COAL MINING MONTHLY AVERAGE 1948 DOLLARS CURRENT DOLLARS SOURCE DEPARTMENT OF LABOR Selected industries Manufacturing Period Current dollars 1948 dollars 2 Retail trade Current dollars 1948 dollars Bituminous coal mining Current dollars monthly average monthly average monthly average monthly average monthly average monthly average monthly average June Julv August September October November December January Februarv March April May June July Data prior to 1948 not exactly comparable with later data 3 Current dollars divided by consumers price index on the base See note 3 to table on page 24 1 Preliminary estimates 4 Not available series being revised Source Department of Labor dollars Building construction 1 Current dollars dollars FARM INCOME Farmers cash receipts in July were seasonally higher than in June but nearly 20 percent lower than in July 1948 This reflected chiefly the substantial drop in prices farmers received In dollars of 1948 farm purchasing power the decrease was about 15 percent BILLIONS OF DOLLARS BILLIONS OF DOLLARS 4 4 II I I 1 I I 1947 INCLUDES CASH FARM INCOME FROM FROM MARKETINGS AND GOVERNMENT p I I I I I S O N D J 48 II I I II F M A M J I I I I I I I J A S O N D J 1948 I I F M A I I I MJ I I 1 I I J A S O N D 1949 MENTS SOURCE DEPARTMENT OF AGRICULTURE Farm income millions of current dollars Period 1939 monthly average 1941 monthly average 1942 monthly average 1943 monthly average 1944 monthly average 1945 monthly average 1946 monthly average 1947 monthly average 1 948 monthly average 1948 June July August September October November December 1949 January February March April May June July o 177 Prices paid by farmers incl Farm income millions of interest and taxes dollars Includes cash farm income from marketings and Government payments Converted from the reported base to the base Farm income in current dollars divided by prices paid by farmers interest and taxes Preliminary estimates Source Department of Agriculture 27 PERSONAL CONSUMPTION EXPENDITURES Nondurable goods purchases continued to fall in the 2nd quarter but at a much slower rate Durable goods mainly automobiles ar d service expenditures advanced BILLIONS OF DOLLARS BILLIONS OF DOLLARS ANNUAL TOTALS ANNUAL RATES SEASONALLY ADJUSTED TOTAL EXPENDITURES DURABLE GOODS A llllfNONDURABLE GOODslllllj SOURCE DEPARTMENT OF COMMERCE Billions of dollars Personal consumption expenditures Period Nondurable goods Total Durable goods Services Annual rates seasonally adjusted 1948 First quarter Second quarter Third quarter Fourth quarter First quarter Second quarter Preliminary estimates NOTE Detail will not necessarily add to totals because of rounding Figures for 1944 48 are revised and do not agree with data previously published in the Indicators See Survey of Current Business July 1949 for details of the revisions Source Department of Commerce CONSUMER CREDIT Total consumer credit increased 63 million in July The further rise in instalment credit particularly for sales of automobiles was partially offset by a drop in charge accounts BILLIONS OF D O L L A R S BILLIONS OF DOLLARS i ST A LMENT c Ri oi f J 1947 F M A M J J A S O N D J F M A M J J A S O N O J F M A M END OF YEAR J J A S O N O 1949 END OF MONTH SOURCE B O A R D OF G O V E R N O R S OF THE F E D E R A L R E S E R V E SYSTEM COUNCIL OF ECONOMIC ADVISERS Millions of dollars Total consumer credit outstanding End of period June July August September October November December January Februarv March April May Total Automobile sale credit Other sale credit and loans Charge accounts Other consumer credit June 2 July 2 Instalment credit Includes single payment loans of commercial banks and pawnbrokers and service credit Preliminary estimates NOTE Detail will not necessarily add to totals because of rounding Source Board of Governors of the Federal Reserve System 29 MONEY BANKING AND FEDERAL FINANCE BANK LOANS AND INVESTMENTS Bank loans dropped about 800 million in July Banks increased their holdings of Government securities by 1 5 billion and other securities by 300 million ONS OF DOLLARS I fjl H J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 1948 END OF YEAR END OF MONTH PREL IMINA ff Y ES TIMA TE Billions of dollars End of period June July August September October November December 1949 January February March April Mav June July 1 1 Investments Total loans and investments Bank loans Total Preliminary estimates NOTE Detail will not necessarily add to totals because of rounding Source Board of Governors of the Federal Reserve System 30 U S Government securities Other securities MONEY SUPPLY The money supply increased more than 1 billion in July chiefly a result of a rise in demand deposits BILLIONS OF DOLLARS BILLIONS OF DOLLARS 200 TOTAL DEPOSITS AND CURRENCY EXCLUDING U S GOV T DEPOSITS TIME DEPOSITS IADJUSTED DEMAND DEPOSITS END OF YEAR 1948 J F M A M J J A S O N D J F M A 1947 M J J A S J 1948 J A S 0 N D 1949 END OF MONTH SOURCE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Billions of dollars Total money supply End of period June July August September October November December January February March 3 April3 May 3 June 3 July Currency outside banks Adjusted demand deposits Time deposits Includes demand deposits other than interbank and U S Government less cash items in process of collection 2 Includes deposits in commercial banks mutual savings banks and Postal Savings System 8 Preliminary estimates NOTE Detail will not necessarily add to totals because of rounding Source Board of Governors of the Federal Reserve System 31 FEDERAL CASH RECEIPTS FROM AND PAYMENTS TO THE PUBLIC The cash deficit of about 2 3 billion during the 2nd quarter compares with a surplus of 1 2 billion during the same quarter of 1948 BILLIONS OF DOLLARS BILLIONS OF DOLLARS CASH RECEIPTS CASH PAYMENTS JL EXCESS OF CASH RECEIPTS EXCESS OF CASH J CALENDAR YEARS SOURCE BUREAU OF THE BUDGET AND TREASURY DEPARTMENT Millions of dollars Federal cash receipts from the public 1 Calendar years Federal cash payments to the public l Calendar year total Quarterly total not adjusted for seasonal First quarter Second quarter 9 462 Third quarter 9 702 Fourth quarter First quarter Second quarter Third quarter 10 220 Fourth quarter First quarter Second quarter 10 238 Third quarter 10 085 Fourth quarter First quarter 2 8 814 Second quarter 1 Payments of refunds of Government receipts are now reported as deductions viously they were reported as expenditures 2 Preliminary estimates based on incomplete data NOTE Detail will not necessarily add to totals because of rounding Sources Treasury Department and Bureau of the Budget 32 Excess of receipts f or payments from total receipts pre o For sale by the Superintendent of Documents TJ S Government Printing Office Washington 25 D O Price 15 cents per copy 1 75 per year 2 25 foreign

Corporate Profits

DATE: September 1949

PART OF:

Economic Indicators : September 1949

AUTHOR:

Council of Economic Advisers (U.S.)

CONTRIBUTING AUTHORS:

Download (pdf)

Share this page:

Table of Contents

less

Save & Share

less

Council of Economic Advisers (U.S.) , United States. Congress. Joint Committee on the Economic Report, 1946-1956 and United States. Congress. Joint Economic Committee, 1956-. "Corporate Profits," in Council of Economic Advisers (U.S.) , United States. Congress. Joint Committee on the Economic Report, 1946-1956 and United States. Congress. Joint Economic Committee, 1956-. "September 1949," Economic Indicators (September 1949) : 25-25. https://fraser.stlouisfed.org/title/1/item/239/toc/232744 , accessed on December 8, 2019.

More Information

less

SUBJECTS:

THEME:

Economic Data