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SURVEY OF CURRENT BUSINESS liMi-4 The Tax Cut The direct income effects of the 1964 Federal tax reduction are shown in the accompanying two charts on personal and corporate income. In addition to raising disposable personal income and after-tax profits of the business sector, the tax law revisions also, of course, affected the Federal fiscal position. Personal spending and saving The tax cut has stimulated consurnption expenditures this year although it is difficult to make a precise estimate of Table 1. — Gross National Product in Current and Constant Dollars (1-3, 1-5) 1964 1963 1961 1962 1963 II III I IV 1963 1961 1962 II Seasonally adjusted at annual rates Personal income and taxes Since the tax cut became effective on March 5, its direct effects on disposable personal income can be traced most clearly by examining changes from the fourth quarter of 1963 to the second quarter of 1964. Over this period personal income rose by $13% billion, an advance not much different from the rise in the second half of 1963, Disposable income had advanced by an average of $6 billion per quarter in the second half of last year, and—in the absence of the tax law changes—the increase in disposable income would have continued at roughly this rate in the opening two quarters of this year, given the actual increase in personal income. In fact, spendable income was up much more sharply: by more than $8 billion in the first quarter and by $12 billion in the second quarter, or more than $20 billion at an annual rate for the 6-month period. It is estimated that the tax reduction directly increased spendable income by roughly $9 billion (annual rate) in the first half. The 2% percent advance in disposable income, in the spring quarter, it may be noted, was the sharpest in the current expansion and the second largest quarterly advance since the end of the Korean War. Due to a number of offsets the actual decline in total personal taxes (including State and local) over the half year was only $6/4 billion rather than approximately $9 billion. As economic activity and income continued to rise, State and local taxes increased by onehalf of a billion dollars. The impact of rising incomes also tended to limit the decline in Federal personal taxes, which fell $7^ billion over the half year. The decrease in withheld income taxes was somewhat larger than this but other Federal taxes (especially payments under the quarterly declarations system) continued to rise. the size of this increase. It is also evident that so far a good part of the tax cut has been saved. As pointed out above, personal con- III II I IV II Seasonally adjusted at annual rates ; Billions of current dollars Gross national product 1963 1964 • Billions of 19.54 dollars 518. 7 556.2 583.9 577.4 587.2 599.0 608.8 618.6 447.9 476.4 492.6 487.9 494.8 502.0 508. 0 513.5 Personal consumption expenditures 337. 3 356.8 375.0 372. 0 377.4 381. 3 390.0 396. 1303.8 318.5 330.6 328.6 332.4 334.4 340. 9 345.0 52. 1 51.5 52.2 53.6 55.9 57.0 41.4 45.7 49.3 48.6 49.4 50. 8 53.1 54. 0 43.7 48.4 9 155 4 16 0 167.5 166. 6 168. 6 168. 9 172.9 175. 3 143.5 148.3 151. 6 151. 1 152. 5 152. 1 155. 2 157. 4 138.3 146.4 155. 3 153. 9 156. 6 158. 8 161.1 163.8 118. 9 124. 5 129. 7 128. 9 130.6 131. 6 132. 6 133.7 Durable goods Nondurable good's Services Gross private domestic investment G8 8 79.1 82.0 80.2 82.8 87.1 85.9 87.2 57.4 65.9 67.7 66.2 68.1 71.7 70.1 70.8 41.0 44.2 46.6 45.9 47.2 48.3 49.2 48.9 34.3 36.7 37.9 37.5 38.2 39.0 39.6 39.2 New construction Residential n on farm Other . .. 'n i 23 6 25 '> 25. 1 25. 4 26. 2 26.9 26.2 18.2 20. 1 21.2 21.2 21.2 21.8 22 3 21.6 19.8 20.6 21.3 20.8 21. 9 22.1 22.3 22.7 16.1 16. 5 16.7 16.4 17.0 17. 2 17.3 17.5 Producers' d u r a ) -le equipment. 25.9 29. 0 31.0 30.7 31.4 32.4 34.2 34.6 21.4 24.0 25.6 25.4 25.9 26. 8 28.1 28.3 Change in business! nventories _ 1.9 5.9 1. 5 5.3 3 .6 Nonfarm Farm Nat exports of goods and services, _ 4.6 4.0 5.2 4.4 3.6 3.9 3.2 .5 3.7 .5 6.0 .4 2.2 .3 3.4 .3 1.5 .2 4.8 .4 4.4 4.3 4.2 5.8 7.7 5.7 2.5 2.2 4.2 6.4 2.5 3.7 1.7 4.1 3.3 4.0 5.9 2. 4 3.3 3.6 .5 2.7 .5 3.4 .6 5.5 .4 2.1 .3 3.0 .3 2.2 2.1 2.0 3.5 5.4 3.4 27.6 29. 2 30.7 30.5 31.0 32.6 34.5 33.7 25.8 27. 5 29.1 28.9 29.4 30.9 32.7 31.9 23.0 25. 2 26.3 26.3 26.8 26.9 26.8 27.9 23.3 25.3 26. 8 26.8 27.4 27.4 27.3 28. 5 Exports Imports Government purchases of goods and services 108.0 116.3 122.6 120.9 122.8 124.8 125.2 129.6 84.3 89.8 92.1 91.0 92.3 92.4 91.6 94.3 57. 4 62.9 64.7 64.3 64.4 64.9 64.3 67.1 44.8 49.4 49.7 49.4 49.6 48. 9 47.8 49.8 Federal National defense Other Less: Government sales 49.0 53. 6 55.2 55.2 55.5 55.3 54.0 57.0 8.9 10.2 10.3 9.9 9.5 10.5 11.5 11.0 .9 .9 1.2 .6 .8 .9 .9 .6 50.6 53.5 57.9 56.7 58.4 59.9 60.9 62.5 39.4 40.3 42.4 41.7 42.7 43.4 43.8 44.5 State and local Table 2.—National Income by Type of Income (1-8, 1-9) [Billions of dollars] 1964 1963 1961 1962 1963 II III IV I II Seasonally adjusted at annual rates National income. 426.9 455.6 478.5 474.6 481.9 490.0 498.4 1506.6 302.2 278 8 997 o 10.2 41.6 23.4 11.8 11. 6 323.1 297. 1 241.6 10.8 44.7 25.9 13.6 12.3 340. 3 312.1 252.9 10.9 48.3 28.2 15.1 13.1 338.1 310.1 251.6 10.7 47.8 27.9 15.0 13.0 342.7 314.3 255. 0 10.7 48.7 28.4 15.2 13.2 347.7 318.8 257.6 11.7 49.6 28.8 15.4 13.4 352.5 323. 2 260. 8 11.7 50. 7 29.4 15.7 13.7 358.6 328. 265. 11. 51. 29. 9 15.9 14.0 9.2 2 4 9.7 2.6 10.4 2 7 Proprietors' income Business and professional Income of unincorporated enterprises Inventory valuation adjustment Farm 48.2 35 3 35.3 0 50.6 37.6 37. 6 0 13.0 50.1 37.3 50.7 51.5 38.3 51.2 38.6 51.7 39.1 r> 9 49.8 36.6 36. 6 0 13.2 12.8 12.9 13.2 12.6 12.6 Rentalincome of persons 12.2 12.2 12.3 12.3 12.4 12.4 12.4 12.4 Corporate profits and inventory valuation adji stment _ _ _ Profits before tax Profits tax liability Profits after tax Dividends Undistributed profits Inventory valuation adjustment 44.1 44.2 22 3 21.9 15.2 6.7 -.1 48.4 48.2 23.2 25.0 16. 5 8.5 .3 50.8 51.3 24.6 26.7 18.0 8.7 -.4 50.2 51.1 24.5 26.6 17.7 8.9 -.9 51.4 51.3 24.5 26.7 17.9 8.9 2 53.1 54.3 26.0 28.3 19.1 9.2 -1.2 56.4 56. 6 25. 4 31.2 19.4 11.8 -.2 Net interest 20.1 22.1 24.4 24.0 24.7 25.4 25.9 Compensation of employees Wages and salaries Private Military Government civilian Supplements t o wages and salaries Employer contributions for social insurance Other labor income _ _ Employer contributions to private pension and welfare funds Other 37.8 J 57.4 57.4 25. 8 31.7 19.8 11. 9 —.1 26.5 1. Second-quarter national income total and the corporate profits share are based on preliminary estimates and are subject, to revision in next month's SURVEY. SURVEY OF CURRENT BUSINESS 6 sumption expenditures increased by nearly $15 billion from the close of 1963 to the spring of 1964. In the same period, personal saving rose $5% billion and the saving rate (personal saving as a percent of disposable income) rose from a little over 7 percent to a little over 8 percent. The second quarter rate is near the upper end of the comparatively narrow range of 6 to 8)2 per- cent in which the personal saving rate has fluctuated since the end of the Korean War. In the past increases in disposable income about as large as the 2% percent gain of the second quarter 1964 have typically been associated witli large increases in the saving rate. However, the length of time it has taken for the rate to return to a more typical figure has varied. Table 3.—Personal Income and Its Use (H-2) [Billions of dollars] 1963 1964 ; .. 1961 1962 1963 II III IV I II Seasonally a( justed at annual rates Personal income Wage and salary disbursements Commodity-producing industries Manufacturing only Distributive industries Service industries . . _ . _ _ Government- 417.6 442.4 464.1 460. 2 466.3 474.5 480.9 487.9 278.8 110.8 87. 5 72. 9 43.4 51.8 297.1 118.5 94. 2 76.6 46.4 55. 6 312.1 123.3 98.0 80.3 49.3 59.2 310. 1 i 314.3 124. 1 122.9 97. 7 98.5 79.7 81. 0 49.0 49.9 59.4 58.5 318.8 125.5 99.9 81. 9 50. 2 61. 3 323. 2 1 26. 7 100.6 82. 7 51.3 62. 4 328. 7 128.9 102.4 84. 1 52.4 63.4 Other labor income 11.6 12. 3 13. 1 13.0 13.2 13.4 13.7 14. 0 Proprietors' income Business and professional Farm 48.2 35.3 12.9 49.8 36. 6 13.2 50.6 37.6 13.0 50.1 37.3 12.8 50. 7 37.8 12.9 51.5 38.3 13.2 51.2 38.6 12.6 51.7 39. 1 12.6 Rental income of persons 12 2 12.2 12.3 12.3 12.4 12.4 12.4 12.4 Dividends Personal interest in come 15.2 27.5 16.5 30. 0 18.0 32. 9 17.7 32.4 17.9 33. 4 19.1 34.2 19.4 35. 0 19.8 35.7 Transfer payments Old-age and survivor s insurance benefits State unemployment insurance benefits Veterans' benefits Other 33.6 12.6 4.0 4.8 12 2 J 4.7 14.3 2.9 4.8 12.7 36. 7 15.2 2.8 5.0 13.7 36. 3 15.3 2. 6 5.0 13.3 36. 5 15. 4 2.6 5.0 13.4 37.2 15.4 3. 0 5. 1 13. 6 38.3 15.6 2.8 5. 2 14. 8 38.0 16. 1 2.5 5.3 14.2 9.6 10.3 11.8 11.7 11.9 12.1 12. 3 12. 5 Less. Personal tax and nontax payments Federal State and local Equals: Disposable personal income 52.9 45.1 7.8 364. 7 57.9 49.1 8.8 384.6 61.6 51.9 9.6 402. 5 61.1 51. 5 9. 6 399. 1 61.9 52.2 9. 7 404. 4 63. 3 53. 4 9.9 411.2 61.4 51.2 10.2 419. 5 56.6 46.1 10.5 431.3 Less: Personal consumption expenditures Equals: Personal saving 337.3 27. 3 356.8 27.8 375.0 27.5 372.0 27. 1 377. 4 2<.0 381.3 29.9 390. 0 29.5 396. 1 35.2 Addendum- Disposable personal income in constant (1954) dollars 328.2 343.4 354.9 352.6 356. 3 360.7 366.7 375.7 Less: Personal contributions for social insurance. _ Table 4.—Gross National Product by Major Type of Product in Current and Constant Dollars (1-6, 1-7) 1961 1962 | 1963 III II Billions of current dollars Final sales Inventory change. I IV I I II Seasonally adjusted at annual rates Seasonally adjusted at annual rates Gross natio nal product I III Billions of 1954 dollars 518. 7 556. 2 583. 9J577. 4J587. 2 599. 0 608. 8 618. 6 447. 9|476. 4 492. 6 487. 9 494. 8 502. 0;508. OJ513. 5 516. 8 550. 3 79., 1.9 583. OJ592. 61606. 4;614.9 446. ? 47 i; 488. 5 484. 6 490. 9:496. 1|505. 6 510. 2 4.1| 3.3 4 . 0 | 5.9! 2 . 4 3.3 Durable goods outputFinal sales Inventory change 259.8279.5290. 2290.1 289, 81296. 71300. 7308, 0 233. 61250.3 258. 1 257. 7 257.8! 263.2! 266. 2(271. 8 0!254. 41253. 8J257. 3!263. 8 268. 5 257.9 273. 61285. 8:286. 5,285, 7 290. 3! 298. 2 304. 3232. OJ245. H 3.3; 4.0 5.9! 2.4 3.3 7i 5. 1.9 5.9 4, 4| 3.6l 4. 2\ 6.4! 2.5! 3. I i i I 82. l j 91. 96, 3! 98.7! 94.3! 99.01100.4 105. 4 94.41105.3 110.41113. 7 108.1J113.4 0| 82. 11 89.: 94. 4 j 96. 4 j 93. 0! 96.4! 99.8 103.3 94 5J102. 3!l08. 2111. 0 106. o]110. 4 1. 9! 2.3| 1. 2l 2.6! .6 2. 1 5 -. 1 j 2. I - . l j 3.0J 2.2J 2.7 1.5| 3.0 Nondurable goods output Final sales Inventory change.. O[ lOO. 3185.' O l LOO. I IfM). 6:151. U 165. 4 174. 2J179. 8J176. 4J181.. 81183. 61158. 6J161. 8H59. 0 163. 61164. 21165. 8 166. 4 163. 4 171.3 177. 61175. 5|179.i . l 1179. 9 183.9 185.441149. 81155. 9:159. 61158. 0 160. 8J160. 9J164. Ojl65. 2 .9! 2.!. 7 3.4 1.8| 1.2 1. 7! 2. 6' 2. 3i 1.0 2.7! 3.3j 1.8| 1.2 2.0 Goods output Final sales Inventory change ! | i I 200. 8! 214. 71228.4 223. 5 231.2 234.5239.61241.7 4|174. 8:181. 4|l78.1J183. 5i 184. 2J186. 8! 186. 7 Construction 58.1 62.0J 65.2! 63.7 66.2 67 J 68.6! 68.9 ! 9 j 51. 3; 53. 0 52.11 53. 5| 54.6! 55. o| 55.0 Addendum: Auto product. 17.7 21.91 24.4| 24.2 24.3 25.6 2 5 . 8 1 2 6 . 4 14. 8J 18. 3' 20. 4 20. l| 20.4 21. 6J 21.7 22.0 Services August 1964 Corporate income and taxes In contrast to the personal income tax cut, the entire direct effects of the corporate tax reduction were reflected in first quarter after-tax profits. The decline in the tax rate, coupled with a continued gain in corporate before-tax profits, led to a very sharp increase in after-tax earnings. In the first quarter, the $2% billion rise in profits before taxes (excluding the inventory valuation adjustment) at the old tax rates would have yielded a rise in after-tax profits of about $1% billion. The actual rise was nearly $3 billion, so that roughly $1% billion is traceable to the new tax law. After-tax profits advanced slightly in the second quarter, reflecting a rise in before-tax profits of about three-quarters of a billion dollars. Federal corporate tax accruals actually declined by only one-half of a billion dollars from fourth quarter to first, as the jump in profits before taxes nearly offset the effects of the tax reduction (see chart). Dividends have continued to rise at a moderate pace this year so that most of the increase in after-tax income has gone into retained earnings. The latter have risen by $2% billion in the past 6 months. The increase in corporate internal funds—retained earnings plus capital consumption allowances—has been $3% billion, or nearly one-tenth, since the fourth quarter. The Federal Budget Reflecting the initial full quarter effects of reduced receipts due to the tax cut and the increase in defense expenditures, the Federal deficit on income and product account was $9 billion at a seasonally adjusted annual rate in the second quarter. This was a sharp change from the small deficit incurred in the first quarter, which was mainly the result of the drop in taxes, stemming from the new tax law. In 1963, witli revenues rising in line witli economic activity and with total Federal outlays changing little during the year, there was a steady decline in the deficit, from an annual rate of nearly $5 billion in the opening quarter of the year to an approximate balance in the closing quarter. BUSINESS STATISTICS A HE STATISTICS here update series published in the 1963 edition of BUSINESS STATISTICS, biennial Statistical Supplement to the SURVEY OF CURRENT BUSINESS. That volume (price $2.00) contains data by months, or quarters, for the years 1959 through 1962 (1951-62, for major quarterly series) and averages of monthly or quarterly data for all years back to 1939; it also provides a description of each series and references to sources of earlier figures. Series added or significantly revised after the 1963 BUSINESS STATISTICS went to press are indicated by an asterisk (*) and a dagger (f), respectively; certain revisions for 1962 issued too late for inclusion in the aforementioned volume appear in the monthly SURVEY beginning with the August 1963 issue. Also, unless otherwise noted, revised monthly data (for periods not shown herein) corresponding to revised monthly averages are available upon request. 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. Unless otherwise stated, statistics through 1962 and descriptive notes are shown in the 1963 edition of BUSINESS STATISTICS 1961 | 1962 | 1963 1961 III Annual total 1962 IV I II Data from private sources are provided 1963 ( '•'' ' III I IV II 1964 III | IV III I II "506 6 Seasonally adjusted quarterly totals at annual rates GENERAL BUSINESS INDICATORS—Quarterly Series NATIONAL INCOME AND PRODUCT National income, totalf bil. $-- Conipen c ation of employees, total do W'i(Tes and salaries total do _ . Private -^°- -"Military - -d° Government civilian do_ Supplements to wages and salaries do Proprietors' income totalcf do Business and professionalc? _ do_ Farm d° Rental income of persons do Corporate profits and inventory valuation adjustment total _bil. $ Corporate profits before tax, total. Corporate profits tax liability Corporate profits after tax Dividends Undistributed, profits Inventory valuation adjustment _.do_ __ do _ _do_ do do do. 426. 9 455. 6 478.5 429. 7 442.4 447.2 454.3 457.8 463. 2 467.9 474.6 481.9 490.0 498.4 ! 302. 2 323. 1 340.3 304.7 310.7 316.6 322.4 325.3 328.0 332.7 338.1 342.7 347.7 35° 5 358 6 278. 8 227.0 10.2 41.6 23.4 48.2 35. 3 12.9 12.2 297.1 241. 6 10.8 44.7 25.9 49.8 36.6 13.2 12.2 312.1 252. 9 10.9 48.3 28.2 50.6 37. 6 13.0 12.3 281. 1 228.9 10.0 42.2 23.6 48.5 35. 7 12.8 12.2 286.8 233.2 10.8 42.8 23.9 49. 6 36.3 13.3 12. 2 291.2 236. 5 11.1 43. 6 25. 4 50. 0 36. 3 13.7 12.2 296. 6 241. 5 11.0 44.1 25 8 49. 9 36. 6 13.3 12.2 299.2 243. 5 10.7 45.0 26 1 49. 7 36. 7 13 0 12.2 301.6 244.8 10.5 46.3 26 4 49 7 36. 9 12 8 12 2 305.3 247.5 10.6 47.2 97 4 50 3 37 1 13 2 12 3 310. 1 251. 6 10.7 47.8 27 9 50 1 37 3 12 8 12 3 314 3 255. 0 10.7 48 7 9S 4 50 7 37 8 12 9 12 4 318 8 257. 6 11. 7 49 6 °8 8 51 5 38 93 13 12 4 393 2 °60 8 11.7 50 7 99 4 51 9 389 6 I 6 12 4 328 7 9 65 3 11 7 51 7 99 9 51 7 39 i I 99 6 I 4 44.1 48.4 50.8 44.0 49.0 47.1 48.0 48.3 50.3 49 1 50 2 51 4 53 1 56 4 f 57 4 44.2 22.3 21.9 15.2 6.7 48.2 23.2 25.0 16.5 8.5 .3 51.3 24.6 26.7 18. 0 8.7 -.4 44.3 22.3 22.0 15.1 6.9 -.3 49.3 24.8 24.5 15.7 8.8 -.3 47.2 22.7 24.5 16.1 8.4 -.1 47.9 23 0 24.9 16.4 8.5 .0 48.1 23 1 25.0 16.5 8.5 .1 49 4 23 8 25 7 17.1 86 .9 48 9 23 4 25 5 17.2 83 2 51 1 24 5 26 6 17.7 89 — 9 51 3 24 5 26*7 17.9 89 2 54 3 56 6 95 4 31 9 19. 4 11 8 — 2 *>r>7 7>95 P 31 pl9. f'll -.1 9fi 0 9g 3 19.1 9 2 —1 2 4 ._ 8 7 8 9 1 do 20.1 22.1 24.4 20.4 20.9 21.3 21.8 22 3 22 9 23 5 24 0 24 7 25 4 25 9 26 5 do 518.7 556. 2 583.9 522. 4 536.9 545.5 553 4 559 0 566 6 571 8 577 4 587 2 599 0 608 8 r g;[g (J Personal consumption expenditures, total. .do 337. 3 356.8 375.0 339.1 345. 2 350.5 354.0 358.5 364.0 369.2 372.0 377.4 381. 3 390.0 r 43 7 17. 1 19.3 155.4 28.7 81.3 11.9 138 3 20.4 44 2 10.7 48.4 20.6 20.2 162.0 29.9 84.6 12.3 146.4 21.6 46.5 11.3 52.1 22.7 21.4 167.5 30.7 87.1 12.8 155 3 22.7 48 9 11.7 44 3 17.4 19.5 155. 7 28.7 81.4 11.9 139 1 20.6 44 4 10.7 46 0 18 6 19.9 157 8 29. 4 82.2 12.0 141 4 20 9 45 o 10.8 47 4 19 7 20.1 159 5 29 6 83.2 12 2 143 6 21 3 45 6 11. 1 47 7 20 3 19.9 161 0 29 7 84.1 12 2 145 3 21 3 46 2 11 2 48 4 20 5 20.3 162 9 30 0 85 2 12 3 147 2 21 7 46 8 11 4 50 2 21 8 20.6 164 4 30 2 85 9 12 5 149 5 22 0 47 5 11 5 51 1 2? 4 20.8 166 0 30 4 86 4 12 7 152 1 29 4 /y? 2 53 6 93 9 22.3 168 9 30 9 87 8 13 0 158 8 55 9 94 3 23.1 172 9 32 1 89 7 13 3 161 1 48 0 11 6 51 5 22 6 21.0 166 6 30 1 86 9 12 8 153 9 22 4 48 6 117 49 8 11 8 12 0 do 68. 8 79.1 82.0 71.3 74.9 77.4 78.9 80.2 79.9 77.9 80.2 82.8 87.1 85.9 ...do. . do do do do_- 41 0 21 1 25.9 1.9 44 2 23 6 29.0 5.9 5.3 46 6 95 2 31.0 4.4 3.9 41 3 21 5 26.3 3.7 33 41 9 44 1 23 5 28.8 6.1 55 45 5 24 4 29.6 5.1 4 4 44 9 04 o 29.7 5.4 48 44 7 24 3 29.6 3.6. 30 45 9 25 1 30.7 3.6 32 47 2 25 4 31.4 4.2 37 48 3 4Q 9 27.4 5.6 52 42 5 22 5 28.1 6.9 6 4 Net interest Gro^s national product, totalf _r I)u able goods, total© do Automobiles and parts. _. _ _ -do_ _. Furniture and household equipment. _.do Nondurable goods, total © _ _ do Clothing and shoes _ _ d o _ __ Food and alcoholic beverages ..do Gasoline and oil .do. _ Services, total© _ _ do Household operation do_ _. Rousing do Transportation. do Gross private domestic investment, total New construction Residential nonfarm Producers' durable equipment Change in business inventories Nonfarm . Net exports of goods and services Exports . . . Imports 1.5 92 1 29 (5 21.6 168 6 31 3 87 3 12 9 156 6 2° 9 49 2 11 7 93 Q 4.2 27 8 23.7 4.3 28 4 24.1 34 28 0 24.6 4 3 29 6 25.3 4 4 29 7 25.3 39 29 4 25.5 K O1 A 4 2 58 25.4 26.3 26.8 26.9 26.8 Govt. purchases of goods and services, totaL.do Federal (less Government sales) do. National defense 9 do State and local do 108.0 57 4 49 o 50 6 116.3 62 9 53 6 53 5 122.6 64 7 55 2 57 9 107.9 57 1 48 6 50 9 112. 6 59 8 50 9 52 8 114.3 619 4 5 5 116.1 63 6 55 3 115.9 9 6 4 53 0 118.7 63 8 121.4 65 1 120. 9 122.8 124.8 125.2 59. 9 60. 9 By major type of product:f Final sales, total Goods, total Durable goods Nondurable goods Services Construction do do do do do do 516. 8 257 9 94.5 163. 4 200 8 58 1 550. 3 273 6 102.3 171.3 214 7 62 0 579. 5 518.7 258 8 95.4 163. 4 9 01 8 531. 4 264 8 98.4 166. 5 606. 4 Inventory change, total Durable goods Nondurable goods do do do 1.9 9g5 g 108. 2 177.6 998 4 65 2 co 9 9QfJ g CQ 538. 7 co r CO CO C A4 ^ (\A A C 9""} £, 547.3 554. 0 561. 2 568. 2 573. 7 103. 5 170. 0 104.1 174.1 105. 0 175.8 111.0 175.5 583. 0 285. 7 106. 6 179. 1 A 91 9 9 101.4 172.6 592. 6 290. 3 110.4 179.9 63. 7 66. 2 67.8 114.3 183.9 239. 6 68. 6 6.9 6.1 5.1 5.4 3.6 4.2 :i 2.7 6.4 3. 0 3.4 2. 5 .7 1.8 91Q 0 Q 3.6 | 2 2.9 ' 3.0 2.0 3.6 2.0 eflncludes inventory valuation adjustment. 9 Government sales are not deducted. I9 2 r 87. 2 r 34. 6 r 5 7 Q 9('0 94. n ol' r 100. 2 168. 7 7 4.4 5.9 3.7 5.6 J ! 9 ^ 3c\ 30 2.0 ' 29 2.' 9 I!4 2. 0 r Revised, p Preliminary, f Revised series. Estimates of national income and product and personal income have been revised back to 1961 (see p. 8 ff. of the July 1964 SURVEY); revisions prior to May 1963 for personal income appear on p. 15 of the July 1964 SURVEY Pj9 g 4 3 OA 33 2 90 6 13 5 9 9 4.4 30 7 26.3 Q T 1 7r o 34.2 2.5 4.0 99 2 25.2 34 24.2 9A 9 32.4 6.4 6 0 27 6 23.0 90 C7 A 94 1 93 c _ _ do_ do do 4.6 396. 1 r r r 27. 9 129. 6 57. 0 62. 5 614.9 304. 3 119.0 1S5. 4 241.7 68. 9 3.7 1.2 parately. S-l SUKVEY OF CURRENT BUSINESS S-2 Unless otherwise stated, statistics through 1962 and descriptive notes fire shown in the 1963 edition of BUSINESS STATISTICS 1961 1 1961 1962 1 1963 1962 IV III Annual total August l!M'i4 I II 1963 III IV I II 1964 IV III 1 II III GENERAL BUSINESS INDICATORS—Quarterly Series—Continued NATIONAL INCOME AND PRODUCT— Con. Quarterly Data Seasonally Adjusted at Annual Rates GNP in constant (1954) dollars G-ross national product totalf bil. $ 447.9 476.4 492. 6 450. 6 462. 5 469. 1 475.1 478. 3 483.0 485.4 487.9 494.8 502. 0 508. 0 Personal consumption expenditures, total.. do 303. 8 318.5 330. 6 305. 1 310. 0 314.2 316. 6 319.8 323. 6 327.0 328.6 332. 4 334. 4 340. 9 345 0 i do do do 41.4 143. 5 118.9 45.7 148.3 124.5 49.3 151. 6 129. 7 41.8 143.9 119.4 43.7 145. 6 120. 8 44.8 146.6 122.7 44.9 147.8 123.8 45. 6 149. 1 125.0 47.6 149.5 126. 5 48. 5 150.7 127.8 48.6 151.1 128.9 49.4 152.5 130.6 50.8 152.1 131.6 53.1 155. 2 132.6 54.0 157. 4 133.7 do 57.4 65.9 67.7 59.4 62.7 64.8 65.8 66.3 66. 5 64.7 66.2 68.1 71.7 70.1 70.8 do do do 34.3 21.4 1.7 36.7 24. 0 5.2 37.9 25. 6 4.1 34.6 21.6 3.2 35.2 35.5 23. 2 6.1 36. 6 23.8 5.4 37.5 24.4 4.4 37.0 24.7 4.9 36. 8 24. 6 3.4 37.5 25.4 3.3 38.2 25.9 4.0 39.0 26.8 5.9 39. 6 28.1 2.4 39. 2 28.3 3.3 do 2.5 2.2 2.2 2.0 2.1 1.3 2.8 2.8 2.1 1.3 2.1 2.0 3.5 5.4 3.4 Govt. purchases of goods and services, totaL.do Federal do State and local do 84.3 44.8 39.4 89.8 49.4 40.3 92.1 49.7 42.4 84.0 44.6 39.4 87.7 47.0 40. 7 88 8 48.4 40.4 89.9 50.2 39.8 89.4 49.2 40.2 90.7 49.9 40.9 92.4 50.7 41.8 91.0 49.4 41.7 92.3 49.6 42.7 92.4 48.9 43.4 91.6 47.8 43.8 94.3 49.8 44.5 417.6 52.9 364.7 442.4 57.9 384. 6 464.1 61. 6 402. 5 420. 6 53.3 367. 3 428. 6 54.4 374. 2 434.7 56. 1 378. 5 441. 0 57.6 383. 4 444. 5 58. 5 386,0 449.7 59.3 390.4 455. 2 60.1 395. 1 460. 2 61.1 399.1 466. 3 61.9 404.4 474. 5 63.3 411.2 480.9 61.4 419. 5 487.9 * 56. 6 '431.3 27.3 27.8 27.5 28.2 29.1 28.0 29.4 27.5 26.4 25.9 27.1 27.0 29.9 29.5 Durable goods Nondurable goods Services - Gross private domestic investment total New construction Producers' durable equipment Change In business Inventories - Net exports of goods and services DISPOSITION OF PERSONAL INCOMEf Quarterly Data Seasonally Adjusted at Annual Rates Personal Income total bll. $ T/ess1 Personal tax and nontax pavments _ do Fqiials1 Disposable personal Income __do Personal saving § do NEW PLANT AND EQUIPMENT EXPENDITURES tin ad justed quarterly or annual totals: All industries bll. $ . 99 7 ^8 r 513 5 r 35. 2 34. 37 37.31 39.22 8.65 9.54 8.02 9.50 9.62 10.18 8.25 9.74 10.14 9.40 111.05 -' 11. 19 Manufacturing Durable goods Industries Nondurable goods Industries do do _ do _ _ 13.68 6.27 7.40 14.68 7.03 7.65 15.69 7.85 7.84 3.34 1.50 1.84 3.88 1.79 2.09 3.14 1.44 1.69 3.69 1.77 1.92 3.72 1.79 1.93 4.13 2.03 2.10 3.27 1.62 1.65 3.92 1.96 1.95 3.95 1.96 1.99 4.56 2.31 2.25 3.79 1.93 1.87 4.54 2.29 2.26 4.62 2.23 2.39 Mining Railroads -Transportation, other than rail Public utilities Communications Commercial and other do do_ __ __ . do do do do .98 .67 1.85 5. 52 3.22 8.46 1.08 .85 2.07 5.48 3.63 9.52 1.04 1.10 1.92 5.65 3.79 10.03 .25 .16 .47 1.50 .78 2.16 .26 . 16 . 50 1.54 .88 2.32 .26 .16 .47 1.06 .88 2.06 .27 .26 .60 1.37 .93 2.37 .28 .24 .50 1.54 .87 2.48 .27 .20 .50 1.52 .95 2.60 .24 .21 .39 1.04 .85 2.26 .26 .28 .54 1.40 .95 2.41 .27 .29 .45 1.60 .93 2.64 .28 .33 .54 1.61 1.06 2.72 .26 .32 .51 1. 18 .97 2.37 .28 .38 .60 1.53 .28 .34 .53 1. 63 Seas. adj. qtrly. totals at annual rates: r> hi goo rf~1 ,dnstrles ' uraLue , ., r~.~ T? 11 n a- -j-taiiroat. -- ,-L do -, /\don rf.t-i Public utilities do BUSINESS POPULATION Firms In operation, end of quarter (seasonally adjusted) - thous 11.09 33.72 s 3. 79 1 34.70 35.40 35. 70 36.95 38.35 37.95 36. 95 38.05 40.00 41.20 42.55 13.65 6.10 7.55 14.00 6.40 7.60 14.20 6.55 7. 60 14.45 6.95 7.50 15.05 7.25 7.80 15.00 7.30 7.70 14.85 7.35 7.50 15. 30 7.65 7.65 15.95 8.00 8.00 16. 45 8.30 8.15 17.40 8.85 8.55 17. 85 8.95 8.90 18. 60 9.00 9. 5f> 1.00 .65 1.90 5.65 3.20 8.60 1.00 .60 1.95 5.55 3.35 9.00 1.15 .70 2. 05 5.15 3.70 8.75 1.05 .95 2.25 5.40 3.65 9.25 1.10 1.00 2.00 5.75 3.60 9.85 1.00 .80 1.90 5.45 3.60 10.20 1.05 .90 1.70 5.20 3.55 9.65 1.00 1.00 2.05 5.45 3.65 9.65 1.05 1.20 1.85 5.90 3.85 10.20 1.05 1.35 2.10 5.80 4.05 10. 45 1.15 1.40 2.30 5.95 4.05 10. 25 1.05 1.30 2.15 6. 15 1. 10 1.35 i 43. 35 - 44. 30 6.00 3 14. 85 3 15.05 < 4, 713 *4,755 4 4, 797 4, 760 4, 770 4, 780 4,790 4,800 4,815 4.825 4,835 4,850 4,860 4,875 31,791 33, 486 35, 710 8, 005 8,616 8,447 8,151 8, 312 8, 576 8, 603 9, 679 8, 383 9, 045 9,113 do do do 14,497 2,954 5, 401 16, 134 3, 044 5, 843 16, 931 2,897 6, 332 3, 826 695 1,346 3, 881 714 1,389 3, 948 758 1,412 4, 058 749 1,462 4,088 745 1 , 465 4. 040 792 1 , 504 4,017 747 1,529 4,197 731 1,578 4, 353 711 1,595 4, 364 708 1,630 4, 347 720 1,613 do do 705 4,054 738 4,293 826 4, 522 174 1,034 174 1, 206 187 1,074 189 1,065 177 1,066 185 1,088 213 1,041 219 1,333 203 1,009 191 1, 139 202 897 ...do do ..do 4,180 1,599 1, 025 1, 556 3, 434 1,654 1,227 553 4,202 1,862 1,644 696 930 435 259 236 1,252 377 445 430 1 , 068 260 390 418 628 446 303 -121 771 417 208 146 967 531 326 110 1, 056 581 521 -46 1,621 451 598 572 512 236 302 -26 1, 013 594 223 196 1,334 463 226 645 do 30, 419 32, 394 33, 352 7,262 7,717 7, 706 7, 925 8, 408 8, 355 7, 655 8, 337 8, 528 8, 832 9,179 do do 19,913 8, 525 20, 576 9, 508 21,938 9, 735 4, 987 2, 134 5, 121 2,187 5, 032 2,198 5. 237 2, 397 5, 288 2. 339 5, 019 2, 574 4,984 2, 432 5,459 2.421 5, 597 2, 375 5,898 2,507 6, 087 2,771 Foreign capital other than liquid funds (net). do 1.274 707 1,280 1,030 969 710 99 42 196 213 150 326 237 54 606 175 287 475 166 73 190 267 424 132 189 238 216 105 Excess of recorded receipts or payments (— ) .. .do Unrecorded transactions (net) do -1,372 -998 — 1,092 -1,111 -2,358 -286 — 743 43 -899 -332 -741 —226 -214 96 -430 -221 -460 -948 -124 -1,342 42 145 -277 -213 73 66 -108 Total net receipts or payments ( — ) do__ -2,370 -2,203 -2,644 Net receipts or payments (— ), incl. transactions in non marketable, medium-term convertible Govt. -700 -1,231 -748 -440 -334 -681 -1,072 -1,300 -132 -140 -42 -722 -1,148 43 -115 -42 «*-667 4, 895 U.S. BALANCE OF INTERNATIONAL PAYMENTScft Quarterly Data are Seasonally Adjusted Imports: Merchandise. Military expenditures Other services - Remittances and pensions Govt. grants and capital outflows Direct investments Tvong-term portfolio Short-term \i ^ receipts recorded Exports: Merchandise Services and military sales -1.942 r Revised. » Preliminary. i Estimates for Apr .-June 1964 based on anticipated capital expenditures of business. 2 Estimates for July-Sept. 1964 based on anticipated capital expenditures of business. Anticipated expenditures for the year 1964 are as follows (in bil. $): All industries, 43.92; manufacturing, total, 18.25; durable goods industries, 9.05; nondurable goods industries, 9 20; mining, 1 09; railroads, 1.44; transportation, 2.21; public utilities, 6.03; commercial and other (incl. communications), 14.90. » Includes communications. * Unadiusted Data represent firms in operation as of Jan. 1; estimate for Jan. 1, 1963, J ' http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis is p 4, 550 p 6, 020 ap_789 based on incomplete data. tSee corresponding note on p. S-l (revisions prior to 3d qtr. 19(51 appear on p. 8 ff. of the Ju y 1964 SURVEY). §Personal saving is excess of disposable income over personal consumption expenditures shown as a component of gross national product on p. S-l. d*More complete details are given in the quarterly reviews in the Mar., June, Sept. and Dec. issues of the SURVEY. {Revisions for 1960— 2d qtr. 1961 appear on p. 10 of the June 1964 SURVEY. a Preliminary revision for 1st qtr. 1964 is —$75 mil.; other revisions will appear in the Sept. 1964 SURVEY.