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SURVEY OF CURRENT BUSINESS

August 1960

weakened as sales tapered, inventories
rose and it became necessary to accelerate merchandising efforts.
Investment trends mixed

Residential construction activity was
reported substantially unchanged for
the spring quarter. Business fixed
investment was up somewhat, as equipment spending held even or advanced
in nearly all major industries. The
spurt in inventory accumulation which
accounted for more than $11 billion of
the first-quarter annual rate of GNP
subsided, but stocking still absorbed
about 1 percent of total output.
Outlays for residential construction
have shown signs of leveling off recently, at an annual rate down $2
billion, or close to 10 percent, from the
alltime peak reached a year ago. Not
much new strength is yet apparent,
however, in the course of reported
starts or of applications for government
loan backing.
Capital market conditions have eased
considerably since the turn of the year;
yields on long-term Treasury bonds, for
example, have moved down about half
a percentage point. The competitive

position of conventional mortgages in which have characterized most nonparticular has improved accordingly, durables industries. Advances in air
with some favorable effects apparent and rail transportation and in commuon activity. Investor demand for gov- nication have also been substantial.
ernment-backed mortgages with their Inventory buildup slows
statutory interest rate ceilings, how- The temporary spurt in production
ever, continues restricted; open market
to refill the inventory pipelines was
discounts on FHA home mortgages
over in a relatively short period and
have declined only fractionally since
markets no longer feel demand presthe turn of the year.
sures from this source. The increase
Business investment purchases of in inventories, at a $5 billion annual
construction and durable equipment rate, was considerably less than in the
continue as a strong element in the first quarter, but was about the same as
economy, registering a gain on the order the accumulation during 1959. The
of $2 billion in the second quarter. slowing rate of accumulation is traceFollowing a like increase in the opening able for the most part to the major
quarter of the year, this brought fixed steel-using industries and to durable
investment outlays for the first half to goods distributors—the same groups
a rate $5 billion or over 10 percent that had required heavy restocking.
above the same period of 1959.
In durables manufacturing, the value
Nearly all of the industries distin- of stocks held has shown little change
guished in the OBE-SEC Plant and in recent months apart from the conEquipment Survey report higher out- tinued expansion in primary metals.
lays so far this year by comparison In trade, dealers' stocks of autos have
with either the first-half or yearend continued to rise on a seasonally adrates of 1959. Investment has been justed basis, but at a rate far under
stepped up most sharply in primary that of the first quarter.
Inventory changes elsewhere conrnetals and other durable goods groups.
Chemicals and textile manufacturing tinued mixed and generally limited.
have registered the largest of the gains Holdings of food and beverage produ-

Table 2.—Gross National Product in Current and Constant Dollars (1-3, 1-5)
[Seasonally adjusted, at annual rates]
Billions of 1954 dollars

Billions of current dollars
1957

1959
1958

II

Gross national product
Personal consumption expenditures.. _
Durable goods
_
_ _ _ _ _ _
Nondurable goods
Services
__ __

I

II

II

III

IV

I

II

505.0

408.6

401.0

428.0

434.2

426.3

429.1

440.5

442.2

323.3
44.2
150. 5
128.6

329.0
44.5
153.5
130.9

271.2
38.5
132.6
100.1

273.6
35.6
133.7
104.3

289.4
40.8
139.3
109.3

290.0
41.6
139.8
108.6

290.8
41.2
139.5
110.1

292.8
41.1
140. 5
111.2

294.8
41.8
141.1
112.0

298.3
41.9
143.2
113.3

56.0

72.0

78.9

67.5

70.8

79.3

75.5

58.1

48.3

60.9

66.7

56.7

59.4

66.2

62.8

35.4

40.3

41.3

41.1

39.4

40.8

40.7

31.8

31.0

34.4

35.2

35.0

33.4

34.0

33.8

17.0
19.0

18.0
17.4

22.3
18.0

23.5
17.8

22.6
18.5

21.3
18.1

21.4
19.3

21.3
19.4

15.3
16.5

16.2
14.9

19.4
15.0

20.4
14.8

19.6
15.4

18.3
15.0

18.3
15.7

18.2
15.6

23.1

25.8

26.1

26.5

26.8

27.1

29.5

24.6

19.4

21.3

21.5

21.7

22.2

22.4

24.2

-2.5

5.9

11.5

-.1

4.7

11.4

5.3

1.6

2 2

5.2

10.1

3.8

9.8

4.8

-3.6

5.4

11.0

-.5

4.3

11.0

5.0

.7

-3.1

4.9

9.7

.0
i

4.0

9.4

4.5

1.2

-2.2

-.2

-.4

12

2.0

3.8

-.2

-2.4

-3.8

— 1. 7

22 7
21.5

22.9
23.8

22.2
24.4

24.0
24.2

23.5
23.9

25.2
23.9

26.4
24.4

24.4
20.6

21.4
21.6

21.9
24.3

21.2
25.0

23.1
24.8

93.5

97.1

97.7

98.1

96.4

97.5

98.6

75.5

79.3

80.2

81.2

49 7

_ - -

501.3

319.6
43.5
149.6
126.6

86.5

Federal

486.4

316.0
44.0
148.0
124.1

26 2
21.3

Government purchases of goods and services

481.4

313.6
44.4
147.7
121.4

4.9

Exports
Imports

487.9

313.8
43.4
147.6
122.8

.8

Net exports of goods and services

482.1

293.5
37.3
142.0
114.2

1.6

Nonfarm__

444.2

285.2
40.4
137.7
107.1

28.5

._ .

Producers' durable equipment _-




IV

1960

1959

36.1

Change in business inventories

State and local

III

1959
1958

66.1

New construction

National defense
__ _
Other
Less: Government sales.

1957

442.8
__

Gross private domestic investment
Residential nonfarm.. _ ._
Other

1960

1959

52 6

53.3

53.7

53.6

52.5

51.8

51.7

43.2

44.5

43.6

44.4
5.7
.4

44.8
8.3
.5

46.0
7.8
.5

46.4
7.8
.5

46.1
8.0
.5

45.5
7.5
.5

44.9
7.5
.5

44.7
7.6
.6

36.8

40.8

43.9

44.0

44.5

43.9

45.7

46.9

32.2

34.8

36.6

-1.0

-1.5

-.1

.7

22.5
24.0

23.8
24.0

25.2
24.5

80.5

78.5

79.6

80.3

44.4

43.5

42.3

41.8

41.8

36.8

37.0

36.2

37.8

38.6

y BUSINESS STATISTICS
X HE STATISTICS here are a continuation of the data published in the 1959 edition of BUSINESS STATISTICS, biennial Statistical Supplement
to the SUEVEY OF CURRENT BUSINESS. That volume (price $2.25) contains monthly (or quarterly) data for the years 1955 through 1958 and
monthly averages for all years back to 1929 insofar as available; it also provides a description of each series and references to sources of monthly
figures prior to 1955. Series added or significantly revised since publication of the 1959 BUSINESS STATISTICS are indicated by an asterisk (*) and a
dagger (f), respectively; certain revisions for 1958 issued too late for inclusion in the aforementioned volume appear in the monthly SURVEY
beginning with the July 1959 issue. Except as otherwise stated, the terms "unadjusted" and "adjusted" refer to adjustment for seasonal
variation.
Statistics originating in Government agencies are not copyrighted and may be reprinted freely. Data from private sources are provided
through the courtesy of the compilers, and are subject to their copyrights.
Unless otherwise stated, statistics through 1958 and
descriptive notes are shown in the 1959 edition of
BUSINESS STATISTICS

1960

1959

July

June

August Septem- October Novem- December
ber
ber

January

February

March

April

May

July

June

GENERAL BUSINESS INDICATORS
NATIONAL INCOME AND PRODUCT t
Seasonally adjusted quarterly totals at annual rates: f
National income total
bil of dol
Compensation of employees, total
\Vages and salaries total
Private
Military
-.
Government civilian
Supplements to wages and salaries

do
do
do
._. do .
do
_ do

Proprietors' income, totalcf 71 __
do
Business and professional d
-- do
Farm
do
Rental income of persons
__ _
- do__
Corporate profits and inventory valuation adjustment, total
--- bil. of dol
Corporate profits before tax, total
do
Corporate profits tax liability
do
Corporate profits after tax
do
Inventory valuation adjustment
do

405 4

399 4

402 8

414 4

279.7
260 1
214.9
9.9
35 3
19.6

279.5
259 7
214 2
9.9
35 7
19.8

281. 6
261 5
215.6
9.8
36. 1
20.1

290 2
268 7
222 1
9.9
36 7
21.5

295 0
273 1
225 5
10.0
37 6
21.9

46.8
34.8
12 0
12.4

46. 1
35.0
11 1
12.4

46.3
35.1
11.2
12.5

46.0
35 4
10 6
12.5

48.1
36 0
12 1
12.5

50.4
51.7
25.5
26.2
-1.3

44.9
45.3
22.3
22.9
— .4

45.5
44.8
22.1
22.7
.7

48.0
48 8
23.8
25 0
— .8

do

16.2

16.5

16.9

17.8

18.5

do

487.9

481.4

486.4

501 3

505 0

Personal consumption expenditures, total . do
Durable goods
do
Nondurable goods
- do
Services
do

313.6
44.4
147.7
121.4

316.0
44.0
148.0
124.1

319.6
43.5
149.6
126.6

323.3
44.2
150 5
128.6

329 0
44.5
153 5
130.9

78 9
41.3
26 1
11.5

67 5
41.1
26 5
— .1

70.8
39.4
26.8
4.7

79 3
40.8
27 1
11.4

75 5
40 7
29 5
5.3

-2.2
22.2
24.4

-.2
24.0
24.2

-.4
23.5
23.9

1.2
25.2
23.9

2.0
26 4
24.4

97.7
53 7
46 4
44.0

98.1
53 6
46 1
44.5

96.4
52.5
45.5
43.9

97.5
51 8
44 9
45.7

98. 6
51 7
44 7
46.9

384 8
46 3
338 5

389.0
46.5
342.4

396 2
49 2
347 0

404 2
50 0
354 1

Net interest
Gross national product, total

-

- -

Gross private domestic investment, total
New construction
Producers' durable equipment
Change in business inventories

do
do
do
do__

Net exports of goods and services
do_ __
Exports
do
Imports __ _
--- -- - do __
Government purchases of goods and services, total
bil. of dol..
Federal (less Government sales)
do
National defense 9
do
State and local
do_Pcrsonal income, total
- -- - _ _ - do
Less* Personal tax and nontax payments
do

Equals' Disposable personal income

do

384.5
46 2
338 3

Personal saving §

do

24 8

22.5

22.8

23 7

25 2

434 2

426 3

429.1

440 5

442 2

290.0
41 6
139.8
108 6

290.8
41 2
139.5
110 1

292.8
41.1
140. 5
111.2

294.8
41.8
141. 1
112 0

298 3
41 9
143.2
113 3

59.4
33.4
22.2
3.8

66 2
34.0
22 4
9.8

62
33
24
4

_

GNP in constant (1954) dollars
Gross national product, total

bil of dol

Personal consumption expenditures, total
do .
Durable goods
- _ __
do
Nondurable goods.
_ .do _ _ _
Services
do
Gross private domestic investment, total
New construction
Producers' durable equipment
Change in business inventories

do
do
do
do

66
35
21
10

7
2
5
1

56 7
35.0
21 7
.0

Net exports of goods and services

do

-3 8

— 1.7

81.2
44 4
36.8

80.5
43 5
37.0

Government purchases of goods and services, total
bil. of dol.
Federal
__
__
do
State and local
do

-1.5
78.5
42.3
36.2

8
8
2
8

— .1

*7

79.6
41 8
37.8

80 3
41 8
38. 0

•"Revised.
fRevised series. Estimates of national income and product and personal income have been revised back to 1957; revisions prior to the 2d quarter 1959 (and prior io May
1959 for personal income) appear on pp. 8 ff. of the July 1960 SURVEY.
^"Includes inventory valuation adjustment.
9 Government sales are not deducted.
§Personal saving is excess of disposable income over personal consumption expenditures shown as a component of gross national product above.

558602°—60

4




8-1


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102