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SUEVEY OF CURRENT BUSINESS

10

Corporate Profits
Information on corporate profits is at present confined to
published reports for the first three quarters of the year;
data for the full year are not yet available. Merely in order
to complete the national income table and not implying an
actual forecast, fourth-quarter profits have been calculated
by averaging the results obtained by holding constant, first,
third-quarter corporate profits before tax plus the inventory
valuation adjustment and, second, third-quarter corporate
profits before tax without that adjustment. It is believed
that the annual figure which is obtained in this manner will
be near enough to the final estimates for general purposes.
Corporate profits before tax rose from about 30 billion
dollars in 1947 to 32 billion in 1948. If the inventory
valuation adjustment is introduced the increase is much
more pronounced. Corporate profits so adjusted are seen to

February 1949

have risen from about 24% billion dollars to 29 billion.
Corporate profits including the inventory valuation adjustment measure the level of corporate profits which would have
obtained if corporations had charged the replacement cost of
inventories used up in production as a cost of sales. Under
accounting practices most generally used, the charge actually
made falls below replacement cost in periods of rising prices,
and explains the fact that unadjusted profits were higher than
adjusted profits both in 1947 and 1948. Owing to the sharper
rise in prices during 1947 than during 1948, the overstatement
of profits in terms of national income concepts was also larger
in the former year—5 billion dollars in 1947 as compared
with 3 billion in 1948.
Taxes took roughly 40 percent of corporate profits in both
years. Dividend disbursements did not keep pace and
consequently the share of undistributed earnings increased.

Table 5.—National Income and Product, 1947 and 1948 l
[Billions of dollars]
Quarterly, 1948
Item

1947

Unadjusted

1948

I

II

Seasonally adjusted at annual rates

III

IV

I

II

III

222.3
136.3
131.3
113.2
3.5
14.6
5.0
51.6
25.3
18.9
7.4
29.6
32.1
12.5
19.6
-2.5
4.8
16.8

228.2
142.4
137.4
118.2
3.5
15.6
5.1
50.6
25.2
18.1
7.4
30.2
34.0
13.3
20.8
-3.9
5.0
17.7

264.9
181.0
22.9
105.1
53.0
42.8
14.7
6.9
7.9
22.7
5.3
4.1
—.4
41.5
25.4
.2
16. a

IV

NATIONAL INCOME BY DISTRIBUTIVE SHARES

National income
Compensation o f employees
_ _ _ _
_ _
Wages and. salaries
Private
Military
Government civilian
Supplements to wages and 3
salaries
Proprietors' and rental income
Business and professional
Farm
Rental income of persons
_
Corporate profits and inventory valuation adjustment
Corporate profits before tax
Corporate profits tax liability _
_
Corporate profits after tax
Inventory valuation adjustment _ _ _ _ _ _
Net interest
Addendum* fompetisatiQii of gfineral GovernTnent eiriploy^fis

224.4
139.4
134.4
115.6
3.5
15.2
5.0
50.9
25.2
18.2
7.4
29.2
32.2
12.5
19.7
-3.0
4.9
17.4

53.0
33.0
31.8
27.3
.9
3.6
1.3
12.5
6.2
4.4
1.9
6.3
t.6
3.0
4.7
-1.3
1.2
4.2

55.6
34.1
32.8
28.2
.9
3.7
1.3
12.9
6.3
4.7
1.9
7.4
8.0
3.1
4.9
-.6
1.2
4.3

57.1
35.6
34.4
29.9
.9
3.6
1.3
12.7
6.3
4.5
1.8
7.5
8.5
3.3
5.2
-1.0
1.3
4.1

58.7
36.6
35.4
30.3
.9
4.2
. 1.2
12.8
6.4
4.6
1.9
(3)
3
(3)
(3)
()
4.7

213.9
134.0
129.1
111.4
3.4
14.2
4.9
49.9
24.8
17.6
7.5
25.3
30.5
11.8
18.7
-5.3
4.7
16.5

254.9
177.7
22.7
103.6
51.4
39.7
14.6
7.0
7.6
21.4
3.8
3.0
1.5
36.0
21.5
.6
15.1

59.4
41.2
4.9
23.8
12.5
9.7
2.9
1.4
1.5
5.0
1.8
1.9
1.0
7.5
4.5
.3
3.4

61.3
43.5
5.5
25.3
12.7
8.5
3.6
1.7
1.9
5.3
-.3
-.6
.7
8.6
5.0
.2
3.8

64.6
44.1
5.6
25.5
13.0
11.1
4.2
2.1
2.2
5.4
1.5
1.1
—.1
9.4
5.7
.1
3.8

69.6
48.9
6.7
29.1
13.2
10.3
3.8
1.8
2.0
5.7
.8
.5
—.1
10.4
6.3
.1
4.1

244.9
172.5
21.3
101.4
49.8
38.0
14.3
7.0
7.3
19.8
3.9
4.3
3.9
30.5
17.9
1.2
13.7

251.9
177.3
22.8
103.7
50.8
38.0
14.4
6.9
7.4
21.0
2.6
1.7
2.7
33.9
19.8
14! 8

258.1
180.1
23.7
104.3
52.1
40.2
14.8
7.1
7.6
21.9
3.5
2.1
-.3
38.2
22.9
.2
15.5

195.2
21.6
19.7
2.0
173.6
164.8
8.8

_

202.5
127.5
122.2
104.7
3.9
13.6
5.3
46.0
23.2
15.6
7.1
24.7
29.8
11.7
18.1
-5.1
4.3
16.8
231.6
164.8
21.0
96.5
47.3
30.0
11.7
5.3
6.4
17.8
.6
2.7
8.9
28.0
16.9
1.3
12.3

_ _ _

213.6
21.0
18.9
2.1
192.6
177.7
14.9

51.1
9.2
8.6
.6
41.8
41.2
.7

52.7
3.9
3.3
.6
48.8
43.5
5.4

53.7
4.2
3.8
.5
49.5
44.1
5.4

56.1
3.6
3.2
.5
52.5
48.9
3.5

207.0
23.0
21.0
2.1
183.9
172.5
11.4

210.8
20.6
18.5
2.1
190.2
177.3
12.9

216.3
20.0
17.9
2.1
196. 2
180.1
16.1

219.6
20.2
18.0
2.2
199.4
181.0
18.4

231.6
13.3
18.5
.6
-3.4
—.1
202.5
24.7
5.6
.0
11.1
4.4
6.9
.6
195.2

254.9
14.4
19.8
.6
-4.4
.0
224.4
29.2
5.1
.0
10.5
4.6
7.8
.6
213.6

59.4
3.5
4.7
.2
-2.0i
__

61.3
3.6
4.9
.2
-2.9
.0
55.6
7.4
1.3
.0
2.7
1.3
1.7
.2
52.7

64.6
3.6
5.0
.2
-1.3
.1
57.1
7.5
1.3
.0
2.5
1.0
1.8
.2
53.7

69.6
3.7
5.2
.2
1.8
.0
58.7
(3)
1.2
.0
2.6
1.2
3.6
.2
56.1

244.9
14.0
19.1
.6
-2.9
-.2
213.9
25.3
5.0
.1
11.0
4.5
7.4
.6
207.0

251.9
14.3
19.7
.6
-5.2

258.1
14.6
20.0
.6
-5.1
.2
228.2
30.2
5.2
—.1
10.3
4.6
7.7
.6
216.3

264.9
14.9
20.3
.6
-4.0
._?
233.2
(3)
5.1
-.1
9.9
4.6
8.3
.6
219.%

i!s

233.2
144.7
139.6
119.6
3.7
16.2
5.1
51.4
25.6
18.4
7.4

8
()
3

(8)

5! 2
18.4

GROSS NATIONAL PRODUCT OR EXPENDITURE

Gross national product
Personal consumption expenditures
_
Durable goods
Nondurable goods
Services
Gross private domestic investment
New construction
Residential nonfann__ _
Other
Producers' durable equipment
Change in business inventories, total
Nonfarm only
Net foreign investment
Government purchases of goods and services
Federal
_ ...
Less: Government s^es
State and local

_

__
_

__

1

_ _

._

__

DISPOSITION OF PERSONAL INCOME

Personal income
Less* Personal tax and nontax payments
Federal
State and local
Equals' Disposable personal income
_
Less* Personal consumption expenditures
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
Equals' National income
_ _ _
_ ____
Less : C or porate profits and inventory valuation adjustment .
Contributions for social insurance
Excess of wage accruals over disbursements
_
Plus* Government transfer payments
Net interest paid by government
_
_
Dividends
Business transfer payments
Equals: Personal income
__ _
_

_

53! 0
6.3
1.3
.0
2.8
1.1
1.7
.2
51.1

222! 3
29.6
5.0
.1
10.7
4.5
7.4
.6
210.8

1 Detail will not necessarily add to totals because of rounding.
Includes noncorporate inventory valuation adjustment.
Data for estimating fourth-quarter corporate profits are not yet available. In order to arrive at a national income total for the fourth quarter and at national income and its components
for the year, corporate profits for the fourth quarter were obtained arbitrarily through averaging the results derived by holding constant, first, third-quarter corporate profits before tax andsecond, third-quarter corporate profits and inventory valuation adjustment. It is believed that totals calculated on this basis will be sufficiently accurate for general purposes.
NOTE.—Data for prior years are published in the July 1948 SURVEY and in the National Income Supplement to the July 1947 SURVEY.
Source: U. S. Department of Commerce, Office of Business Economics.
2
3




BUSINESS STATISTICS
J.HE DATA here are a continuation of the statistics published in the 1947 Statistical Supplement to the SURVEY OF CURRENT BUSINESS.
That volume1 contains monthly data for the years 1941 to 1946, 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 1941. Series added or revised since publication of the
1947 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 refer to adjustment of monthly
figures for seasonal variation.
Data subsequent to December for selected series will be found in the Weekly Supplement to the Survey.
Unless otherwise stated, statistics through
1946 and descriptive notes may be found in
the 1947 Supplement to the Survey

1947

December

1948

j

January

February

March

April

May

June

July

August

September

October

November

December

GENERAL BUSINESS INDICATORS
NATIONAL INCOME AND PRODUCTf
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.
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

r
r
T
r

212.8
132.2
127.1
109.5
3.6
14.0
5.0
48.6
24.7
16.5
7.4

243.8
171.1
22.1
100. 2
48.8
35.4
14.0
18.9
2.5
8.2

Personal income, total
do
Less: Personal tax and nontax payments.. _do
Equals: Disposable personal income-.
do
Personal savings!
_ _ . _ do

203.1
22.2
180.9
9.7

T

'29.6
'32. 1
' 12.5
'19.6

244.9
172. 5
21.3

233.2
144.7
139.6
119.6
3.7
16.2
5.1
51.4
25.6
18.4
7.4

' 258. 1
' 180. 1
'23 7
' 104 3
' 52 1
' 40 2
14.8
' 21 9
'3 5
—.3

264.9
181.0
22.9
105.1
53.0
42.8
14.7
22.7
5.3
4

'22 7
15.5

41.5
25.2
16.3

' 210.8
'20.6
' 190. 2
'12.9

' 30.5
T
16 7
13.7

-.4
5.2

'33.9
19. 1
' 14.8

49 8
38. 0
14 3
19 8
r
3. 9
3.9

30.2
34 0
13.3
20.8
-3.9
'50

' 251. 9
' 177.3
' 22. 8
' 103 7
' 50.8
'38.0
14 4
' 21 0
' 2.6
'2.7

r 101 4
r
r

228 2
142 4
137 4
118 2
'3 5
15 6
'51
50.6
25 2
18.2
'74

—2.5
'48

r

29.0
15.5
13.5

'
'
'
'

'74

'26.3
' 30 5
' 11.8
'18.7
-5.3
r
47

27.5
32.4
12.7
19.7
—4. 9
4.5

Gross national product, total
do. _.
Personal consumption expenditures,total. _ do
Durable goods
_ do. _
Nondurable goods
do
Services
_ ___
_
_ _ . 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

' 222. 3
' 136 3
' 131 3
r
113.2
r
3 5
' 14.6
5 0
'51.6
' 25. 3
18.9

213.9
134 0
129 1
111.4
T
3 4
14.2
4 9
'49.9
r
24 8
' 17.6
7 5

'216 3
' 20.0
' 196 2
' 16.1

219. 6
20.2
199.4
18.4

T

r

207. 0
'23.0
' r183 9
11.4

PERSONAL INCOME BY SOURCEf
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

do

207.7
127.4
129.4
59.2
37.4
15.2
17.6
2.0
1.9
51.3
16.2
10.9

184.2

' 208. 8
' 127. 4
' 129. 6
'68.9
37.5
r

15.5

'17.7
2.2
1.9
' 61. 8
16.5
'11.2
' 184. 3

' 206. 4
' 126. 8
' 128. 8
'57.8
37.8
' 16. 6
' 17. 6

' 205. 7
' 126. 6
' 128. 7
' 57.7
'37.6
'16.6
'17.8

' 208. 6
' 126. 8
' 128. 8
' 57.3
r
37. 8
' 15.9
'17.8

2.0
2.0
'49.6
16.6
'11.4

2.1
1.9
'48. 4
16.6
'12.2

2.0
2.0
'51.2
16.7
'11.9

184.3

185.1

185.3

' 214. 4
'131.4
' 133. 6
'60.4
' 38. 8
' 16.1
18.3

' 214. 8
' 133. 4
' 135. 6
'60.9
'39.5
' 16.4
18.8

' 216. 7
' 135. 9
' 138. 0
'62.3
'40.0
'16.5
' 19.2

' 217. 3
' 136. 7
' 138. 9
'63.0
. r 40. 0
' 16.4
' 19.5

' 218. 5
' 137. 5
' 139. 6
'63.0
'40.2
'16.6
'19.8

' 219. 9
' 138. 0
' 140. 1
'63.8
'39.7
'16.6
20.0

220.8
137.3
139.5
63.2
39.7
16.5
20.1

2.0
2.0
' 50. 4
16.8
'11.0

2.2
2.0
' 53. 0
16.8
11.1

2.2
2.1
' 51.7
17.0
'11.1

'2.1
2.1
'50.3
17.3
'11.1

'2.2
2.1
'50.4
17.5
'10.6

'2.1
2.1
' 50.7
' 17.8
'10.4

'2.1
2.1
'51.4
'18.1
10.3

2.2
2.1
52.2
18.4
10.8

186.6

189.7

191.3

193.8

195.0

195.6

' 196. 3

197.1

' 209. 2
' 129. 0
'131.0
r
58.5
'38.6
r
15. 9
'18.0

NEW PLANT AND EQUIPMENT EXPENDITURES
4,170
4,820
All industries, total
..mil. of dol._
4, 830
4,940
15,010
1
500
Electric and gas utilities
do
640
690
620
780
1,800
2,140
Manufacturing
do
2,290
2,090
i 2, 160
180
200
Mining
do
210
200
U80
270
310
Railroad
....
do
300
330
1400
180
190
Other transportation
. . _ _ . . _ . . do. _
190
170
1160
1,240
Commercial and miscellaneous
do
1,340
1,340
1,360
1 1. 330
' Revised.
i Estimates based on anticipated capital expenditures of business.
§ Personal savings is excess of disposable income over personal consumption expenditures shown as a component of gross national product above.
f Revised series. Estimates of national income, gross national product, and personal income have been revised beginning 1944; see pp. 27-29 of the July 1948 Survey for the revised figures.

S-l

822014°—49

5




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