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SURVEY OF CURRENT BUSINESS
Consumer market developments in
the first quarter featured a rebound in
new auto sales, and continued growth
in expenditures for services. Spending
for food was up about in line with
prices; while outlays for most other
types of goods showed little change.
Auto sales improve

The $1 billion rise in the annual rate
of auto spending, to $18 billion in the
first quarter, reflected some catching up
as the supply shortages of late 1959
were overcome. For the first 4 months
of 1960, unit sales were above the yearearlier period by 15 percent. The
effect of this improvement on total
GXP was not so great as the figures
would suggest; the gain centered in the
new compact models, which generate
less business for the supplier industries.
Production was stepped up in the
early months of this year, in order to
bring retail stocks of cars up to the desired volume. By the end of the quarter
auto inventories had been built up to
record levels, and subsequently they
have been held even. The size of stocks
reflects the dealers' need to carry a
wider variety of models this year, and

May 1960

the industry's desire to post a large
sales gain over 1959.
Demand for furniture and household
appliances has shown little change since
new residential activity turned down
after the middle of last year.

quarter, has declined from month to
month so far in 1960 though remaining
at relatively high levels. The recent
course of housing starts and of applications for Government backing indicates a continuation of this movement
for the immediate future.
Food and apparel
While the decline in expenditures
Food consumption about matched from last year's peak has amounted to 8
the fourth quarter in real volume. percent, the fall in starts has been conCurrent dollar outlays, however, siderably sharper. Outlay per unit has
spirted late in the winter as prices risen, reflecting an increase in the prorose. Most of the price advance was portion of higher priced housing built
traceable to supply factors affecting as well as a general advance in conhogs, poultry and eggs, as weather struction costs; and expenditures for
losses reinforced the effects of the 1958- additions and alterations have held up.
59 price decline on production.
Business fixed investment rose. Part
First-quarter sales of clothing and of the immediate gain reflected a reshoes were about even with the final covery from the strike-caused slowquarter of last year on a seasonally downs, but the underlying influence was
adjusted basis, the total being held the continuing cyclical upswing in
down by a dip late in the winter demand for plant and equipment. Data
though this was apparently made up in from the OBE-SEC survey of business
capital plans indicate a continued imApril.
provement during 1960.
The scheduled gains from the fourth
Capital Investment
quarter to the first, while industrially
Residential construction activity, widespread, were concentrated in areas
which moved downward last year after where recovery in investment had
reaching an all-time high in the spring lagged. Outlays in manufacturing rose

Table 5.—Gross National Product in Current and Constant Dollars
[Seasonally adjusted, at annual rates]
Billions of current dollars

j

1958

1959

1957
I

-

-

Chance i n business inventories
Nonfarm

_

_

III

IV

I

441.7

479.5

470.4

484.8

478. 6

483. 5

500.2

408. 3

399. 0

426.0

420.7

432.1

424. 3

426.8

439.3

293. 0

311.6

303.9

311.2

313. 3

317. 0

321. 1

270.8

273. 3

287.6

282. 3

288.3

288.8

291.1

293.5

37.6
141.9
113.4

43.0
147.9
120.7

41.3
145.3
117.4

44. 1
147.7
119.4

43.6
148. 0
121. 6.

42.8
150. 1
124. 1

43.7
151.1
126. 3

38.5
132.6
99.8

35.7
133. 7
103. 8

40.2
139. 3
108.2

38. 8
137. 3
106.2

41.2
139.7
107.4

40.6
139.4
108.8

40.2
140.7
110.2

41.1
141.3
111.1

54.9

71.1

70.0

77.7

67.0

69.7

79.2

58. 5

47.3

60.2

59.8

66.0

56.4

58.8

66.3

35.8

40.2

39.7

41.0

41.0

39.2

40.4

31.9

31.5

34.4

34.3

35.1

34.9

33.3

34.0

18.0
17.7

22.2
18.0

21.9
17.8

23.1
17.9

22.6
18.3

21.3
17.9

21.3
19.1

15.4
16.5

16.2
15.2

19.4
15.0

19.3
15.0

20.2
14.9

19.7
15.2

18.4
14.9

18.2
15.7

27.0

_

28.5

22.9

26.1

23.9

26.0

27.5

28.1

24.6

19.3

21.5

19.8

21.3

22.1

22.7

23.1

_ _ _ . - _

2.0

-3.8

4.8

6.3

10.7

-1.0

3.0

10.6

2.0

-3.5

4.4

5.7

9.5

-.6

2.8

9.2

. - -

1.2

-4.9

3.9

5.4

9.8

-1.8

2.3

10.1

1.1

-4.4

3.5

4.7

8.6

-1.4

2.1

8.6

-.9

.0

-.6

1.2

3.8

.0

-2.2

-.7

. - - -

-2.6

-2.7

-3.5

4.9

1.2

0

26. 2
21.3

22.6
21.3

22.8
23.6

21.5.
22 4

22.1
23.9

24.1
24. 1

23.4
24.1

24.8
.23.6

24.4
20.6

21. 6.
21.6

21.7
24.3

20.4
23.1

20.9
24.5

23.1
25.0

22.4
24.7

23.3
24.0

86.2

92.6

97.6

97.4

97.7

98.4

97.4

98.8

75.1

78.4

80.7

81.3

81.4

81.0

79.1

80.2

49.4

52.2

53. 5.

53. 8

53.9

53.6

52.7

52.3

42.8

44.1

44.2

44.9

45.0

44.1

42.7

42.4

44.3
5.5
.4

44. 5.
8.1
.5

45.8
8.1
.4

45.8
8.3
.3

46.2
8.0
.3

45.9
8.1
.4

45. 3
7.8
.4

44.8
7.8
.4

36 8

40.5

44.1

43. 6

43.8

44.8

44.7

46.5

32.3

34.4

36.5

36.4

36. 4

36.9

36.3

37.7

-1.8

NOTE.—For back data see Tables 1-3 and 1-5 in the July 1959 Survey, and for years prior to 1956, in U.S. Income and Output.




II

17.0
19.0

_ _

Government purchases of goods and services

State and local

I

66.6

K xports
Imports

National defense
Other
Less' Government sales

I

36.1

Net exports of goods and services (GNP basis). ._

Federal

IV

40.3
137.7
106. 7

New construction

Producers' durable equipment

III

1960

1959

284.8

Gross private domestic investment _

Residential nonfarm
Other

II

1958

442.5

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

1959

1960

1959

1957

Billions of 1954 dollars

-1.9

BUSINESS STATISTICS

WlontLL

JL HE STATISTICS here are a continuation of the data published in the 1959 edition of BUSINESS STATISTICS, biennial Statistical Supplement
to the SURVEY 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 freety. 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

1959

March

April

May

June

July

1960

August Septem- October Novem- December
ber
ber

January

j
March | April

February

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

total

.

_. do _
_
do...
-<io-_
do
.
_ _ ___ _do
salaries
do

Proprietors' income, totaled
- Business and professional cf - - Farm
Rental income of persons
_
- ._
Corporate profits and inventory valuation
ment total
bil
Corporate profits before tax, total
Corporate profits tax liability
Corporate profits after tax
Inventory valuation adjustment

--do
do.. .
do
-do. ._
adjustof dol
do
do
.do
do

389 4

403.9

398 2

402 6

269. 9
250. 9
200.2
9 8
34.8
19 0

278.9
259. 4
214.0
9 8
35.6
19 6

279
259
213
9
36
19

3
5
5
8
3
8

281 6
261. 5
214.8
9 8
36. 9
20 0

290
268
221
9
37

46 9
33.7
13 2
12.0

46.6
34.5
12.1
12.0

45 1
34 8
10 3
12.0

46 7
35. 1
11 6
12.0

46
35
10
12

45 5
46.5
22 6
23.8
— 9

51 0
52.6
25.6
27.0
— 1.6

46
46
22
23
—

46 9
45 7
22 2
9
34
5

0
4
6
8
3

1
6
2
9
6

9} 4

3
4
8
2

do

Personal consumption expenditures, total
Durable poods
Nondurable goods
Services
_
_ _
_ _
_

15 1

15 4

15 8

16 1

16 4

do

Net interest
Gross national product, total

470.4

484.8

478 6

483 5

500 9

do
do
do
do

303.9
41 3
145.3
117.4

311.2
44 1
147.7
] 19. 4

313 3
43 6
14* 0
121.6

317 0
42 8
150. 1
124. 1

32]
43
151
126

70.0
39.7
23.9
6. 3

77. 7
41.0
26.0
10.7

67.0
41 0
27.0
—1 0

69. 7
39.2
27.5
3 0

40 4
28 1
i() (\

-.9

-1.8
22 1
23,9

0

21 5
22 4

?4 1
24 1

—. 6
23 4
24. 1

1; 2
94 g
'•'3 ('<

97 4
53 8
45 8
43.6

97 7
53 9
46 2
43.8

5? 6
45 9
44 8

97 4
'">2 7
45 3
44. 7

% 8
^o 3
44 8
3QM 1

Gross private domestic investment, total.- do. _
New construction
. do
Producers' durable equipment
do
Change in business inventories
do
Net exports of coods and services
- do
E \-ports
do
Imports
.- ... . - - - _ d o _ - Government purchases of goods and services, total
bil of dol
Federal (less Government ''ales)
do
National defense $
do
State and local
do

98 4

1
7
1
3

m9

4(i r

personal income vtotal
j (>m^- Porson'il ta and nontax pavrncrts
Equals* Disposable personal income

do
do
do

371 8
44 4
327.4

381 1
45 8
335. 3

381 0
45 9
335 "i

386 8
46 1
340 8

4'"4

Personal savins §

do

23 5

24 1

21 9

23 7

04 4

47 7

GNP in constant (1954) dollars
420 7

432 1

42-t 3

4°6 8

4% 3

do
do.. do
do

282.3
38.8
137.3
106. 2

288. 3
41. 2
139.7
107 4

288,8
40 6
139 4
108 8

291.]
40.2
140 7
110 2

293.
41
]41
111

Gross private domestic investment, total - do.. Now construction
do
Producers' durable equipment
- ... do _ .
Change in business inventories
- . ...do

59.8
34.3
19.8

66. 0
35 1
21.3
9.5

56.4
34 9
22 1
-.6

.=.8. 8
33 3
22. 7
2.8

—2 7

—3 5

—1 9

—2 2

81.3
44 9
36.4

81.4
45 0
36.4

81.0
44 1
36. 9

79. 1
4? 7
36.3

Gross national product, total

bil of dol

Personal consumption expenditures, total
Durable coods
_ _
_
Nondurable goods _
Services

Net exports of o'oods and services

do

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

Revised.
cTIncludes 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.

548341°—60-




f*
I
3
I

(i6 3
H4 (i
'>••{ i

j

42 4 :
37.7 '

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