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SURVEY OF CURRENT BUSINESS

14

income accounts for business and persons, so that their
impact on these broad areas of the national economy can
readily be traced back to the public policies and programs
involved. In particular, it is important to note that transactions with business are measured in accordance with the
accounting practices of business rather than those of government. Corporate taxes are reported on an accrual basis,
for example; and, since this is a current account, borrowing
and other capital-fund transactions are excluded.
The composition of transfers has already been indicated,
and that of purchases is discussed below. The movements
in the fourth line of the table stemmed mainly from the item
of subsidies less enterprise surpluses, which has fluctuated
irregularly with changes in postal, farm price support, and
soil bank operations of the Federal Government.

Expansion in purchases
Purchases by the Federal, State, and local governments in
the third quarter amounted to $93% billion, at annual rates,
or one-fifth of the gross national product.
Total buying by these governments was off fractionally
in the summer of 1957. The decline involved a downward
reaction in national security spending from the 3-year high
reached earlier in the year; and the non-Federal portion of
the government total was held level at this time, as supply

November 1058

difficulties temporarily checked the growth of construction
outlays.
In each of the next three quarters, however, the government market expanded by $1 billion to $1K billion, at annual
rates. The advance last summer amounted to $2% billion.
The increases during the business downswing were principally in State and local expenditures. The Federal Government adopted a policy of expediting the award of supply
contracts as a means of fighting recession, and noneconomic
factors brought an increase in emphasis on military preparedness. The stretchout in production and delivery
schedules could not be reversed immediately, however.
Among other difficulties, the stepping up of the rate of purchases involved complicated technical problems arising,
e. g., from the growing importance of revolutionary new types
of weapons and power plants.
Defense purchases began to move up around midyear.
Increased outlays for military personnel and for research
and development have contributed to the expansion, which
continued in the summer quarter.
Changes in defense procurement schedules begin to affect
the national economy well in advance of the delivery dates
concerned. Contract awards for military procurement fell
off $1% billion in the summer of 1957, but had more than
made up this drop by the opening quarter of 1958 and rose
several billion further in the spring. One apparent consequence of this trend was the tapering, late in the winter,

Table 1.—Gross National Product, 1953-57, and First 3 Quarters, 1958
[Billions of dollars]
Seasonally adjusted at annual rates
1953

1954

1955

1956

1957
•&

363. 1

1958

1

II

in

IV

I

II

in

419.2

440.3

436.3

441.2

445.6

438.9

425.8

429.0

439.0

256.9

269. 4

284. 4

279.8

282.5

288.3

287.2

286.2

288.3

291. 5

32.4
119.3
86. 3

39. 6
124. 8
92. 5

38. 4
131. 4
99. 6

39. 9
138.0
106. 5

40. 2
135. 5
104. 1

39. 5
137. 1
105. 9

40. 4
140. 5
107. 4

39. 6
138. 8
108. 7

36. 3
139. 8
110. 1

35. 6
141. 4
111.3

36. 1
142. 9
112. 5

50. 3

48. 9

63. 8

68. 2

65. 3

65.9

67. 0

66. 7

61. 5

49. 6

49. 2

53. 7

27. 6

29. 7

34.9

35. 7

36.5

36. 1

36. 1

36. 6

37. 1

36.3

34. 9

36.3

13. 8
13. 8

15. 4
14. 3

18. 7
16. 2

17. 7
18. 1

17.0
19.5

17. 2
18.9

16. 5
19. 6

16. 9
19. 7

17. 6
19. 6

17. 1
19.2

16. 2
18. 7

17.9
18. 4

22. 3

20. 8

23. 1

27. 0

27. 9

28. 7

28. 1

28. 0

26. 7

22. 9

22. 3

22. 3

.4
1. 1

-1. 6
-2. 1

5.8
5.5

5. 4
5.9

1.0
.2

1. 1
.6

2. 9
2. 0

2. 2
1. 3

-2.3
-3. 1

-9. 5
9. 3

-8. 0
-7. 8

-5. 0
-5. 4

-2. 0

-. 4

-. 4

1. 4

3.5

4. 2

4.2

3.6

1. 9

.5

.5

.5

84.4

76. 6

77. 1

80.3

87. 1

86.4

87.5

87.0

88. 3

89.5

90. 9

93. 3

59. 5

48. 9

46. 8

47. 1

50. 8

50. 5

51. 5

50.9

50. 5

50. 9

51. 9

53. 4

51. 5

43. 0

41. 3

42. 5

46. 5

45.8

47. 4

46. 9

46.0

45. 6

46. 0

46. 6

49. 3
2.3

41. 2
1. 9

39. 1
2. 2

40. 3
2. 2

44.3
2. 2

43. 7
2. 1

44. 9
2.5

44.9
2.0

43. 9
2. 1

43. 7
1.9

44. 1
2.0

44. 5
2. 1

8.4

6.2

5.9

5.0

4.8

5. 1

4.5

4.5

5.0

5.7

6.2

7.2

.4

.4

.4

.4

.5

.4

.4

.5

.5

.4

.4

.4

24. 9

27. 7

30. 3

33. 1

36.3

35. 9

36.0

36. 1

37.8

38. 6

39. 1

39. 9

Gross national product

365.4

Personal consumption expenditure

232. 6

238.0

32.9
118.0
81. 8

Durable goods
Nondurable goods
Services _

_

_ _
_

Gross private domestic investment

_

New construction _
Residential nonfarm
Other

__ _

Producers' durable equipment

_ _ _

Change in business inventories, total
Nonfarm only
Net foreign investment
Government purchases of goods and services.
Federal
National security

_

National defense
Other national security
Other

1957

_ _ ___

Less: Government sales
State and local

_

Source: U. S. Department of Commerce, Office of Business Economics.




397.5

v BUSINESS STATISTICS
JL HE STATISTICS here are a continuation of the data published in the 1957 edition of BUSINESS STATISTICS, biennial Statistical Supplement
to the SUBVEY OF CURRENT BUSINESS. That volume (price $2) contains monthly (or quarterly) data for the years 1953 through 1956 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 1953. Series added or significantly revised since publication of the 1957 BUSINESS STATISTICS are indicated by an asterisk (*) and a
Dagger (f), respectively; certain revisions for 1956 issued too late for inclusion in the aforementioned volume appear in the monthly SURVEY
Beginning with the July 1957 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.
through the courtesy of the compilers, and are subject to their copyrights.

Data from private sources are provided

[Averages for the year 1957 are provided in the May 1958 issue of the SURVEY]
1957
Unless otherwise stated, statistics through 1956 and
descriptive notes are shown in the 1957 edition of SeptemBUSINESS STATISTICS
October Novem- December
ber
ber

1958
January

February

March

April

May

June

July

August Xr| October

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

do
do
do
do
do
do

Proprietors' and rental income, totaled
do
Business and professionalcf
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

368 7

361 5

350 6

352 4

257.3
240 5
199.9
98
30.8
16 8

254.8
238 0
197 4
9 5
31 1
16 8

250.9
234.4
192.7
9 4
32.3
16 5

250.7
234 2
191.8
9 6
32.8
16 4

255.3
238 4
195.0
10 0
33 4
16 9

55 5
31.7
11.8
12 0

55 0
31 3
11.5
12 2

55 3
30.6
12.6
12 1

56 2
30.7
13.4
12 1

56 6
31. 1
13.3
12 2

8
9
9
0
1

31.3
31.7
16 1
15.5
— 3

32 5
32.0
16 3
15.7
.5

2

43 1
44.2
22 0
22.1
—1 1

38
39
19
20
—1

do

Net interest

12 8

12 9

13 0

13 1

13 2

do

445 6

438 9

425 8

429 0

439 0

Personal consumption expenditures, total
Durable goods
Nondurable goods
Services

do
do
do
do

288.3
40 4
140.5
107 4

287.2
39 6
138 8
108 7

286.2
36 3
139.8
110 1

288.3
35 6
141.4
111 3

291.5
36 1
142.9
112 5

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

do
do
do
do

66
36
28
2

61
37
26
—2

49 6
36.3
22 9
-9.5

49 2
34.9
22 3
—8.0

53 7
36.3
22 3
—5.0

Gross national product total

Net foreign investment
do
Government purchases of goods and services, total
bil of dol
Federal (less Government sales)
do
National security 9
do
State and local
do

7
6
0
2

5
1
7
3

.5

.5

.5

87.0
50 9

46 9
36 1

88
50
46
37

3
5
0
8

89.5
50 9
45 6
38 6

90.9
51 9
46 0
39 1

93.3
53 4
46.6
39 9

36

19

Personal income total
Less: Personal tax and nontax payments
Equals* Disposable personal income

do
do
do

351 8
43.1
308 7

349 7
43.0
306 8

347 3
42.3
305.0

349 8
42.3
307.5

357.5
43.5
314.0

Personal saving §

do

20.4

19 6

18.8

19.2

22.5

PERSONAL INCOME, BY SOURCE
^asonally adjusted, at annual rates :f
Total personal income
Wage and salary disbursements, total
Commodity-producing industries
Distributive industries
Service industries
__
Government

bil. of dol

351.4

350.6

350.2

348.4

348.2

346.4

347.1

348.1

349.9

352.0

* 864. 2
i 358. 8

356.1

' 357. 8

357.5

do _
do
do
do
do

240.2
102.4
64.2
32.9
40.7

238.6
101.5
63.5
32.9
40.7

238.0
101.0
63.6
32.9
40.5

237.3
99.8
63.7
33.2
40.6

235.1
97.9
63.5
33.1
40.7

233.2
95.6
63.4
33.2
41.0

232.6
95.3
62.9
33.3
41.1

232.0
95.0
62.4
33.4
41.2

233.1
95.6
62.6
33.4
41.5

235.8
96.6
63.3
33.6
42.4

1 242. 2
97.1
63. 5
33.7
i 48.0

238.5
97.7
63.6
33.8
43.4

' 239. 4
'98.4
'63.6
33.9
43.5

238.6
97.5
63.7
33.9
43.6

9.1
55.4
31.8
21.5

9.2
55.1
31.8
22.6

9.2
54.8
31.8
23.0

9.2
55.2
30.0
23.3

9.1
55.1
31.8
23.9

9.0
55.3
31.8
23.8

8.9
55.7
31.7
24.8

8.9
56.1
31.7
26.1

8.9
56.5
31.7
26.4

8.9
56.2
31.8
26.0

9.0
56.3
31.8
26.5

9.1
56.6
31.9
26.8

9.2
' 57. 0
31.9
r
27.0

9.2
57.4
32.0
26.9

6.6

6.6

6.6

6.6

6.7

6.7

6.6

6.6

6.7

6.7

7.0

6.8

6.8

6.7

Other labor income
do
Proprietors' and rental income
do
Personal interest income and dividends
do
Transfer payments
do
Less personal contributions for social insurance
bil. of dol. .

339.2 ' 340. 9
340.5
335.2
330.5
331.0
335.1 i 342. 0
336.1
335. 7
332.5
330.1
333.0
Total nonaericultural income
do
' Revised.
1 Italicized total excludes and other footnoted figures include lump-sum retroactive salary payments to Federal employees; disbursements of $380 million multiplied by 12 (to
put on annual rate basis) amounted to $4.6 billion.
fRevised series. Estimates of national income and product and personal income have been revised back to 1946; revisions beginning
1946 appear on pp. 12 ff. of the July 1958 SURVEY.
^Includes inventory valuation adjustment.
? 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.




332.4

S-l

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