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SURVEY OF CURRENT BUSINESS August 1960 weakened as sales tapered, inventories rose and it became necessary to accelerate merchandising efforts. Investment trends mixed Residential construction activity was reported substantially unchanged for the spring quarter. Business fixed investment was up somewhat, as equipment spending held even or advanced in nearly all major industries. The spurt in inventory accumulation which accounted for more than $11 billion of the first-quarter annual rate of GNP subsided, but stocking still absorbed about 1 percent of total output. Outlays for residential construction have shown signs of leveling off recently, at an annual rate down $2 billion, or close to 10 percent, from the alltime peak reached a year ago. Not much new strength is yet apparent, however, in the course of reported starts or of applications for government loan backing. Capital market conditions have eased considerably since the turn of the year; yields on long-term Treasury bonds, for example, have moved down about half a percentage point. The competitive position of conventional mortgages in which have characterized most nonparticular has improved accordingly, durables industries. Advances in air with some favorable effects apparent and rail transportation and in commuon activity. Investor demand for gov- nication have also been substantial. ernment-backed mortgages with their Inventory buildup slows statutory interest rate ceilings, how- The temporary spurt in production ever, continues restricted; open market to refill the inventory pipelines was discounts on FHA home mortgages over in a relatively short period and have declined only fractionally since markets no longer feel demand presthe turn of the year. sures from this source. The increase Business investment purchases of in inventories, at a $5 billion annual construction and durable equipment rate, was considerably less than in the continue as a strong element in the first quarter, but was about the same as economy, registering a gain on the order the accumulation during 1959. The of $2 billion in the second quarter. slowing rate of accumulation is traceFollowing a like increase in the opening able for the most part to the major quarter of the year, this brought fixed steel-using industries and to durable investment outlays for the first half to goods distributors—the same groups a rate $5 billion or over 10 percent that had required heavy restocking. above the same period of 1959. In durables manufacturing, the value Nearly all of the industries distin- of stocks held has shown little change guished in the OBE-SEC Plant and in recent months apart from the conEquipment Survey report higher out- tinued expansion in primary metals. lays so far this year by comparison In trade, dealers' stocks of autos have with either the first-half or yearend continued to rise on a seasonally adrates of 1959. Investment has been justed basis, but at a rate far under stepped up most sharply in primary that of the first quarter. Inventory changes elsewhere conrnetals and other durable goods groups. Chemicals and textile manufacturing tinued mixed and generally limited. have registered the largest of the gains Holdings of food and beverage produ- Table 2.—Gross National Product in Current and Constant Dollars (1-3, 1-5) [Seasonally adjusted, at annual rates] Billions of 1954 dollars Billions of current dollars 1957 1959 1958 II Gross national product Personal consumption expenditures.. _ Durable goods _ _ _ _ _ _ _ Nondurable goods Services __ __ __ Gross private domestic investment New construction Residential nonfarm.. _ ._ Other ._ . Producers' durable equipment _Change in business inventories Nonfarm__ Net exports of goods and services Exports Imports Government purchases of goods and services Federal National defense __ _ Other Less: Government sales. State and local _ - - 1960 1957 1959 III IV I II 1959 1958 1960 1959 II III IV I II 442.8 444.2 482.1 487.9 481.4 486.4 501.3 505.0 408.6 401.0 428.0 434.2 426.3 429.1 440.5 442.2 285.2 40.4 137.7 107.1 293.5 37.3 142.0 114.2 313.8 43.4 147.6 122.8 313.6 44.4 147.7 121.4 316.0 44.0 148.0 124.1 319.6 43.5 149.6 126.6 323.3 44.2 150. 5 128.6 329.0 44.5 153.5 130.9 271.2 38.5 132.6 100.1 273.6 35.6 133.7 104.3 289.4 40.8 139.3 109.3 290.0 41.6 139.8 108.6 290.8 41.2 139.5 110.1 292.8 41.1 140. 5 111.2 294.8 41.8 141.1 112.0 298.3 41.9 143.2 113.3 66.1 56.0 72.0 78.9 67.5 70.8 79.3 75.5 58.1 48.3 60.9 66.7 56.7 59.4 66.2 62.8 36.1 35.4 40.3 41.3 41.1 39.4 40.8 40.7 31.8 31.0 34.4 35.2 35.0 33.4 34.0 33.8 17.0 19.0 18.0 17.4 22.3 18.0 23.5 17.8 22.6 18.5 21.3 18.1 21.4 19.3 21.3 19.4 15.3 16.5 16.2 14.9 19.4 15.0 20.4 14.8 19.6 15.4 18.3 15.0 18.3 15.7 18.2 15.6 28.5 23.1 25.8 26.1 26.5 26.8 27.1 29.5 24.6 19.4 21.3 21.5 21.7 22.2 22.4 24.2 1.6 -2.5 5.9 11.5 -.1 4.7 11.4 5.3 1.6 2 2 5.2 10.1 3.8 9.8 4.8 .8 -3.6 5.4 11.0 -.5 4.3 11.0 5.0 .7 -3.1 4.9 9.7 .0 i 4.0 9.4 4.5 4.9 1.2 -2.2 -.2 -.4 12 2.0 3.8 -.2 -2.4 -3.8 — 1. 7 26 2 21.3 22 7 21.5 22.9 23.8 22.2 24.4 24.0 24.2 23.5 23.9 25.2 23.9 26.4 24.4 24.4 20.6 21.4 21.6 21.9 24.3 21.2 25.0 23.1 24.8 86.5 93.5 97.1 97.7 98.1 96.4 97.5 98.6 75.5 79.3 80.2 81.2 49 7 52 6 53.3 53.7 53.6 52.5 51.8 51.7 43.2 44.5 43.6 44.4 5.7 .4 44.8 8.3 .5 46.0 7.8 .5 46.4 7.8 .5 46.1 8.0 .5 45.5 7.5 .5 44.9 7.5 .5 44.7 7.6 .6 36.8 40.8 43.9 44.0 44.5 43.9 45.7 46.9 32.2 34.8 36.6 -1.0 -1.5 -.1 .7 22.5 24.0 23.8 24.0 25.2 24.5 80.5 78.5 79.6 80.3 44.4 43.5 42.3 41.8 41.8 36.8 37.0 36.2 37.8 38.6 y BUSINESS STATISTICS X HE STATISTICS here are a continuation of the data published in the 1959 edition of BUSINESS STATISTICS, biennial Statistical Supplement to the SUEVEY 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 freely. 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 1960 1959 July June DecemAugust SeptemOctober November ber ber January February March April May July June GENERAL BUSINESS INDICATORS NATIONAL INCOME AND PRODUCT t Seasonally adjusted quarterly totals at annual rates: f National income total bil of dol Compensation of employees, total \Vages and salaries total Private Military -. Government civilian Supplements to wages and salaries do do do ._. do . do _ do Proprietors' income, totalcf 71 __ do Business and professional d -- 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 405 4 399 4 402 8 414 4 279.7 260 1 214.9 9.9 35 3 19.6 279.5 259 7 214 2 9.9 35 7 19.8 281. 6 261 5 215.6 9.8 36. 1 20.1 290 2 268 7 222 1 9.9 36 7 21.5 295 0 273 1 225 5 10.0 37 6 21.9 46.8 34.8 12 0 12.4 46. 1 35.0 11 1 12.4 46.3 35.1 11.2 12.5 46.0 35 4 10 6 12.5 48.1 36 0 12 1 12.5 50.4 51.7 25.5 26.2 -1.3 44.9 45.3 22.3 22.9 — .4 45.5 44.8 22.1 22.7 .7 48.0 48 8 23.8 25 0 — .8 do 16.2 16.5 16.9 17.8 18.5 do 487.9 481.4 486.4 501 3 505 0 Personal consumption expenditures, total . do Durable goods do Nondurable goods - do Services do 313.6 44.4 147.7 121.4 316.0 44.0 148.0 124.1 319.6 43.5 149.6 126.6 323.3 44.2 150 5 128.6 329 0 44.5 153 5 130.9 78 9 41.3 26 1 11.5 67 5 41.1 26 5 — .1 70.8 39.4 26.8 4.7 79 3 40.8 27 1 11.4 75 5 40 7 29 5 5.3 -2.2 22.2 24.4 -.2 24.0 24.2 -.4 23.5 23.9 1.2 25.2 23.9 2.0 26 4 24.4 97.7 53 7 46 4 44.0 98.1 53 6 46 1 44.5 96.4 52.5 45.5 43.9 97.5 51 8 44 9 45.7 98. 6 51 7 44 7 46.9 384 8 46 3 338 5 389.0 46.5 342.4 396 2 49 2 347 0 404 2 50 0 354 1 Net interest Gross national product, total - - - Gross private domestic investment, total New construction Producers' durable equipment Change in business inventories do do do do__ Net exports of goods and services do_ __ Exports do Imports __ _ --- -- - do __ Government purchases of goods and services, total bil. of dol.. Federal (less Government sales) do National defense 9 do State and local do_Pcrsonal income, total - -- - _ _ - do Less* Personal tax and nontax payments do Equals' Disposable personal income do 384.5 46 2 338 3 Personal saving § do 24 8 22.5 22.8 23 7 25 2 434 2 426 3 429.1 440 5 442 2 290.0 41 6 139.8 108 6 290.8 41 2 139.5 110 1 292.8 41.1 140. 5 111.2 294.8 41.8 141. 1 112 0 298 3 41 9 143.2 113 3 59.4 33.4 22.2 3.8 66 2 34.0 22 4 9.8 62 33 24 4 _ GNP in constant (1954) dollars Gross national product, total bil of dol Personal consumption expenditures, total do . Durable goods - _ __ do Nondurable goods. _ .do _ _ _ Services do Gross private domestic investment, total New construction Producers' durable equipment Change in business inventories do do do do 66 35 21 10 7 2 5 1 56 7 35.0 21 7 .0 Net exports of goods and services do -3 8 — 1.7 81.2 44 4 36.8 80.5 43 5 37.0 Government purchases of goods and services, total bil. of dol. Federal __ __ do State and local do -1.5 78.5 42.3 36.2 8 8 2 8 — .1 *7 79.6 41 8 37.8 80 3 41 8 38. 0 •"Revised. fRevised series. Estimates of national income and product and personal income have been revised back to 1957; revisions prior to the 2d quarter 1959 (and prior io May 1959 for personal income) appear on pp. 8 ff. of the July 1960 SURVEY. ^"Includes 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. 558602°—60 4 8-1
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