View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

STJKVEY OF CUEEENT BUSINESS

May 1950

quarter of that year. Nonagricultural personal income, also
exclusive of the insurance dividends, exceeded even its
previous peak in the final quarter of 1948.

Table 3.—National Income and Product, Fourth Quarter 1949 and
1
First Quarter 1950
[Billions of dollars]

Payrolls advance

Unadjusted

Payrolls moved upward from the fourth quarter by about
$1% billion, at annual rates. It should be noted, however,
that not all of this increase was reflected in personal income.
Employee contributions for social insurance, which are
deducted in obtaining wage-and-salary receipts, rose by
about $% billion as higher rates under the old-age and survivors insurance program became effective in January.
Distributive and service industries contributed to the firstquarter wage advance, but factory payrolls in durablegoods manufacturing establishments accounted for most of
it. In part, the rise in these payrolls was due to the lesser
effect of strikes than in the preceding quarter. More importantly, however, it reflected the character of the recent
upturn in final demand, which, as already explained, was
associated to a large extent with durable goods. March payrolls in durable-goods industries exceeded the presteel-strike
figure of last September (as well as all intervening months).
Average weekly hours worked in durable manufacturing
have been, increasing since the middle of 1949, and it would
appear that the rate of increase accelerated somewhat in the
first quarter after allowance is made for seasonal factors.
Wages in nondurable manufacturing showed little change
from the fourth quarter. This was also true of other commodity-producing industries, among which small variations
proved largely offsetting on balance. Government payrolls
were stable.

Favorable showing of proprietors' income
Proprietors' and rental income amounted to $45 billion at
annual rates in the initial quarter of this year—roughly $1
billion above the preceding quarter. Gains in this component
of personal income centered in the nonagricultural business
sector, as neither farm nor rental incomes showed much
change.
Chiefly responsible for the favorable movement of nonfarm
proprietors' earnings was the expansion of consumer spending
early this year. Since apart from agriculture the noncorporate form of organization is concentrated heavily in retail
trade, and since proprietors of such establishments benefited
substantially from the increased volume of retail sales, they
accounted for most of the rise in business and professional
income. Proportionately large gains also accrued to manufacturing proprietors, but these were not great in absolute
terms.
The stability of farm income resulted from an approximate
balance between divergent movements of its major determinants. A decline in the seasonally adjusted volume of crops
marketed was counterbalanced by increased marketings
(seasonally adjusted) of livestock and livestock products.
Prices received by farmers differed very little, on the whole,
from the fourth quarter.

Other components of personal income
Among the principal components of personal income,
the only one to decline in the first quarter was dividends.
This drop, however, reflected inclusion in the fourth quarter
figures of an unusually large declaration of an extra dividend
in December by a single great manufacturing corporation,
and did not signify a basic downturn. The rate of distribution of profits to stockholders remained higher than in any
previous quarter except the fourth of 1949.
(Continued on p. 24)



Item

Seasonally adjusted, at
annual rates

1949

Compensation of employees
Wages and salaries
_
__
Private
Military
_
_ _ _ _
Government civilian
Supplements to wages and salaries __ _
Proprietors' and rental income 4
Business and professional
Farm.
_
_
Rental income of persons

_ __
_

_
_

_

1950

I

IV 2

I

55.1

NATIONAL INCOME BY DISTRIBUTIVE
SHARES
.

1949

IV 2

National income

1950

(3)

219.1

(3)

35.7
34.4
28.8
1.1
4.5
1.3

35.2
33.6
28.1
1.1
4.4
1.5

140.9
135.3
113.5
4.5
17.3
5.6

142.8
136.7
115.1
4.4
17.2
6.1

10.9
6.0
3.2
1.7

11.2
6.3
3.2
1.7

43.7
24.0
12.9
6.8

44.7
25.0
12.9
6.8

(3)
-.2

30.2
29.5
11.2
18.2
.7

(3)
(3)
(3)
(3)

Corporate profits and inventory valuation adjustment
Corporate profits before tax
__ _
Corporate profits tax liability
Corporate profits after tax
_
Inventory valuation adjustment

7.4
7.2
2.7
4.5
.2

Net interest

1.1

1.1

4.3

4.3

Addendum: Compensation of general Government
employees
__
_ _
_ _
_ _

5.3

5.2

20.7

20.3

68.0

63.3

256.7

263.9

48.7
7.2
27.4
14.2

43.1
5.9
22.6
14.5

179.8
25.2
97.7
56.9

182.7
26.9
98.1
57.7

8.3
4.8
4.8
-1.3
-1.1

10.4
4.2
4.8
1.4
1.6

33.7
18.7
18.7
-3.7
-2.8

41.1
20.1
19.3
1.7
2.5

8
()
3

GROSS NATIONAL PRODUCT OR EXPENDITURE
Gross national product
Personal consumption expenditures
Durable goods.- __ _ _
Nondurable goods
Services _
_
_ _
Gross private domestic investment
New construction _
Producers' durable equipment
Change in business inventories, total
Nonfarm only
Net foreign investment

.0

-.6

-.5

-2.1

Government purchases of goods and services
Federal
_
Less: Government sales
State a n d local _ _ _ _ _

11.0
6.3
.1
4.8

10.4
5.9
.0
4.5

43.7
25.2
.2
18.8

42.2
23.4
.2
18.9

53.6

54.3

209.3

219.9

3.6
3.1
.5

6.8
6.0
.8

18.6
16.1
2.5

18.7
16.1
2.6

DISPOSITION OF PERSONAL INCOME
Personal income
Less: Personal tax and nontax payments
Federal
State and local _
-

r

Equals: Disposable personal income

49.9

47.5

190.7

201.3

Less: Personal consumption expenditures

48.7

43.1

179.8

182.7

1.2

4.4

10.8

18.6

68.0

63.3

256.7

263.9

4.3
5.5
.2
3.0

4.4
5.3
.2
(3)

17.2
21.4
.6
-1.4

17.5
21.6
.6
(3)

Equals: Personal saving.

_ _ __

_

RELATION OF GROSS NATIONAL PRODUCT,
NATIONAL INCOME, AND PERSONAL INCOME
Gross national product .

_ _ _

Less: Capital consumption allowances
Indirect business tax and nontax liability. _ _ _ _
Business transfer payments
Statistical discrepancy
Plus: Subsidies less current surplus of Government enterprises

.1

.1

.4

.3

Equals: National income

55.1

(3)

Less: Corporate profits and inventory valuation adjustment
_
_
Contributions for social insurance
Excess of wage accruals over disbursements

7.4
1.3
.0

(3)
1.7
0

30.2
5.6
0

(3)
6.6
0

3.0
1.3
2.7
.2

5.2
1.2
2.0
.2

11.8
4.7
8.9
.6

20.7
4.7
8.6
.6

53.6

54.3

209.3

219.9

Plus* Government transfer payments
Net interest paid by Government
Dividends
Business transfer payments
Equals: Personal income

219.1

(3)

1
Detail will not necessarily add to totals because of rounding.
2
Data for the fourth quarter of 1949 are the same as those in the February issue of the SURVEY, with two exceptions: An actual estimate of fourth-quarter corporate profits, not previously available, has been introduced; and a revised figure for net foreign investment has
been included. Comprehensive revisions of the national income and product estimates for
1949 to incorporate recent information will be made in the July issue of the SURVEY.
s Not available.
* Includes noncorporate inventory adjustment.
Source: U. S. Department of Commerce, Office of Business Economics.

Wlontki

BUSINESS STATISTICS

JL HE DATA here are a continuation of the statistics published in the 1949 Statistical Supplement to the SURVEY OF CURRENT BUSINESS.
That volume (price $1.25) contains monthly data for the years 1945 to 1948, and monthly averages for earlier years back to 1935 insofar as available; it also provides a description of each series and references to sources of monthly figures prior to 1945. Series added or revised since publication of the 1949 Supplement are indicated by an asterisk (*) and a dagger (f), respectively, the accompanying footnote indicating where historical
data and a descriptive note may be found. The terms "unadjusted" and "adjusted" used to designate index numbers and dollar values refer to
adjustment of monthly figures for seasonal variation. Data subsequent to March 1950 for selected series will be found in the Weekly
Supplement to the SURVEY.
Monthly averages for 1949 are shown in the March 1950 issue of the Survey of Current Business. Copies of that issue (price 25 cents)
are available from Department of Commerce field offices or from the Superintendent of Documents, U. S. Government Printing Office,
Washington 25, D. C.

Unless otherwise stated, statistics through
1948 and descriptive notes are shown in the
1949 Statistical Supplement to the Survey

1949

March

April

May

June

July

1950

August

September

October

November

December

January

February

March

GENERAL BUSINESS INDICATORS
NATIONAL INCOME AND PRODUCT
Seasonally adjusted quarterly totals at annual rates:
National income total
bil of dol
Compensation of employees, total
do
Wages and salaries, total
do
Private
do
Military
do
Government civilian
do
Supplements to wages and salaries
do
Proprietors' and rental income, total^ do
Business and professional of
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
Net interest
do
Gross national product, total
Personal consumption expenditures, total
Durable goods
Nondurable goods

do
do
do
do

Gross private domestic investment
do
New construction
_
do
Producers' durable equipment
do
Change in business inventories
do
Net foreign investment
do
Government purchases of goods and services,
total
bil of dol
Federal (less Government sales)
do
State and local
do
Personal income total
Less- Personal tax and nontax payments
Equals* Disposable personal income
Personal saving§

do
do
do
do

224.7
141.9
136.5
116.1
4.1
16.3
5.4
47.1
24.1
16.4
6.7

220.8
140.8
135.4
114.7
4.1
16.6
5.5
45.1
24.1
14.3
6.7

220.7
141.1
135.6
114.4
4.2
16.9
5.5
43.1
24.0
12.6
6.6

219 1
140.9
135.3
113 5
4.5
17.3
56
43 7
24 0
12 9
6 8

31.6
29.4
11.5
17.9

2.2
4.1

30.7
26.4
10.6
15.8
4.3
4.2

32.3
28.9
11.4
17.5
3.3
4.2

30
29
11
18

262.0
178.7
23.0
100.4
55.3
40.0
16.8
20.7
2.5
1.0

257.9
179.3
23.6
99.8
55.9
33.2
16.4
20.0
-3.2
1.2

254.6
179.7
25.7
97.6
56 5
32.1
17.4
19.6
-5.0
-.3

42.3
25.2
17.1

44.2
26.4
17.8

43.2
25.0
18.2

212.0
18.6
193.4
14.8

210.0
18.6
191.4
12.1

208.2
18.6
189.5
9.8

142 8
136 7
115 1
4 4
17 2
61
44 7
25 0
12 9
6 8

2
5
2
2
7
4 3

r

~
4 3

256 7
179 8
25 2
97 7
56 9
33 7
18.7
18 7
—3 7
—2 0
43 7
25 0
18 8
209
18
190
10

263 9
182 7
26 9
98 1
57 7
41 1
20 1
19 3
17
—2 1
42 2
23 2
18 9

3
6
7
8

219
18
201
18

9
7
3
6

PERSONAL INCOME. BY SOURCE
Seasonally adjusted, at annual rates:
Total personal income
_bil. of dol__
Wage and salary receipts, total
do
Employer disbursements, total
do
Commodity-producing industries
do
Distributive industries—.
do
Service industries
do
Government
do
Less employee contributions for social insurance
bil. of dol_Other labor income
do
Proprietors' and rental income
do
Personal interest income and dividends. _do
Total transfer payments
do
Total nonagricultural income

210.2
132.3
134.6
57.4
39.4
17.3
20.5

210.5
133.9
136.0
57.4
40.7
17.3
20.6

210.2
133.7
135. 9
57.0
40.9
17.4
20.6

209.4
132.9
135.2
56.7
40.3
17.3
20.9

207.2
133.0
135.2
56.4
40.5
17.1
21.2

209.1
133.4
135.6
56.9
40.5
17.1
21 1

208.3
133.7
135.9
57.1
40.5
17.1
21.2

207.0
132.7
134.9
55.5
40.2
17.5
21 7

209.4
132.5
134.7
56.0
39.5
17.4
21 8

211.9
134 4
136.6
57.4
39.9
17 4
21 9

218.1
133 7
136. 5
57.1
40.1
17 6
21 7

'2.3

' 2.1

' 2.2

2.1
46.2
17.0
12.6

2.1
45.0
17.1
12.4

2.1
45.2
17.0
12.2

'2.3
2.1
45.1
17.0
12.3

2.2
2. 1
42.8
16.9
12.4

2.2
2.1
43.9
17.1
12.6

2.2
2.1
42.7
17.2
12.6

2.2
21
42.9
17.3
12.0

2.2
2 2
44.9
17.4
12.4

2.2
2 2
43.5
18.9
12.8

2.8
22
46 5
17.4
18.3

2.7
2 2
' 41 1
'17.6
22.1

2.8
2 4
43 7
17.9
23.5

do

190.5

191.8

191.4

190.5

190.2

191.4

192.2

190.3

191.3

194.5

198 7

' 202 7

206 7

of dol
do
do
do
do
do
do

4,460
1,850

_

219.1
' 133 1

' 135. 8
56.5
'39.9
17 8
r 21 6

222.7
135 2
138. 0
58.4
40.2
17 8
21 6

NEW PLANT AND EQUIPMENT
EXPENDITURES
All industries, quarterly total
mil.
Manufacturing _ _ __ _
__
Mining
Railroad
__ __
Other transportation
Electric and gas utilities
_
Commercial and miscellaneous

190
360
130
680

1,260

4,660
1,880
190
380
140
780
1,290

4,370
1,690
180
310
140
790
1,260

i 4 no
i i ego
i 17Q
i 250
i go
i 740
1
1. 170

4 630
],830
180
300
120
890
1, 320

r

Revised.
i Estimates based on anticipated capital expenditures of business.
d"Includes inventory valuation adjustment.
§ Personal saving is excess of disposable income over personal consumption expenditures shown as a component of gross national product above.


885501°—50
4


S-l

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