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SURVEY OF CURRENT BUSINESS

November 1959

11

Table 1.—Gross National Product or Expenditure, Seasonally
Adjusted Quarterly Totals at Annual Rates, 1957-58, and First
Three Quarters 1959*

Table 2.—Gross National Product or Expenditure, Seasonally
Adjusted Quarterly Totals at Annual Rates, in Constant Dollars,
1957-58, and First Three Quarters 1959*

[Billions of dollars]

[Billions of 1954 dollars]

1957

1958

1958
I

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

IV

I

II

III

IV

I

II

III

270 8 273 3 268.7 271 1 275.0 278.4 282.3 288 3 288 8

40.3 37.6 36 9 36 7 37 1 39 8 41 3 44 1 43 6
137.7 141.9 139.5 141.5 143. 1 143.6 145.3 147.7 148.0
106.7 113.4 111.0 112 7 114 2 115 7 117 4 119 4 121 6
54.9

52.4

51.3

54 2

61 3

69 8

77 5

67.0

35 5

34 6

35 4

37 3 39 7

41 0

41 0

17.0
19.0

18 0
17.7

17 1
18.4

16 9
17.7

18 0
17.4

19 9
17.4

21 9
17.8

23 1 22 6
17.9 18.3

28.5

22.9

23.8

22.6

22 2

23.2

23 9

26.0

66.6

Change in business inventories

2.0 —3.8 —6 9 —5 8 —3 4
1.2 -4.9

Nontarm
Net exports of goods and services (GNP basis)

—8 1 —7 0 —4 5

27.0

10.4 — 1.0
9.8 —1.8

Net exports of goods and services (GNP basis)
Government purchases of goods
and services
.

-.9 -1.8

.0

22.3 23.1 22.7
21. 1 21 5 22 5

21.5
22 4

22.1
23.9

24.1
24. 1

86.2

92.6

89.3

91.1 93.8

96.5

97.4

97.7

98.4

49.4

52.2

50.1

51.3

53.1

54.2

53.8

53.9

53.6

44.3 44.5 45.3 45.8 46.2
7.5 8.9 9.4 8.3 8.0
.3
.6
.5
.3
.3

45.9
8. 1
.4

42 2

44.8

44.3 44.5 44.0
5.5 8.1 6.6
.5
.5
.4
36.8

40 5 39 2 39.7

40 8

Producers' durable equipment _
_-_
Change in business inventories . -_
.
Nonfarm

.2

43 6

43.8

*For back data see Table 1-3 in the July 1959 Survey and, for years prior to 1956, in U.S.
INCOME AND OUTPUT.

but also the special sensitivity of the latter to changes in
general credit conditions.
The contraction in residential building 4 years ago, like
the advance which preceded it, had been largely confined to
activity under Government insurance or guarantee. The rise
of 1958-59 was concentrated to a much lesser degree in such
Government-backed housing, and the decline last summer
was apparently no more pronounced in FHA and VA than
in conventional starts. Applications for Federal backing,
which have generally led the movement of "starts" in this
category, have tapered more than seasonally since midyear.
The decline is still apparent after allowance is made for the
distortion due to a bulge in FHA applications just before
the July 1 effective date of that agency's new minimum
property standards.

Federal
State and local

__

58 5

47 3

45 0

44 2

46 6

53 0

59 7

65 7

56 4

31 9
15 4
16.5

New construction
Residential nonfarm
Other

54

2.0

1.6

Gross private domestic investment

61

22.2
20.2

1.2

38 5 35 7 35 2 35 0 35 3 37 5 38 8 41 2 40 6
132 6 133.7 131.3 132.7 135.3 135.6 137.3 139.7 139.4
99 8 103 8 102 2 103 4 104.4 105 3 106 2 107 4 108 8

.8

1.2

4.9

Durable goods
Nondurable goods
Services

— 1

26.2 22.6
21.3 21.3

N ational defense
Other
Less : G o vernment sales

III

II

284.8 293.0 287.3 290.9 294 4 299.1 303 9 311.2 313 3

Producers' durable equipment

_ __ __

I

408.3 399.0 391.0 393.1 400.9 410.8 420.6 431.8 424.3

Residential nonfarm
Other-.

Government purchases of goods
and services

1959

Gross national product

36. 1 35 8

Exports _
Imports

19 58

1958

Personal consumption expenditures

New construction

State and local

III

1957

442.5 441.7 431.0 434.5 444.0 457.1 470.2 484.5 478.6

Gross private domestic investment

Federal

II

1959

31 5
16 2
15.2

31 3
15.4
15.9

30 5
15.3
15.1

31 2
16.3
15.0

32 6
17.8
14.8

34 3
19.3
15.0

35 1
20 2
14.9

34 9
19 7
15.2

24.6

19 3

20.1

19.0

18.6

19.3

19.8

21.3

22.1

2.0 -3.5 -6.4 -5.3 -3.2
1 1 —4 4 —7.2 —6. 1 -4.2

1.1
.0

5.6
4.7

3.8

.0

As in other recent periods, the larger part of the summer
increase in business fixed investment demand was in equipment, but a rise was also scheduled in industrial and other
nonresidential construction activity.
Total capital outlays are up about one-tenth in real terms
from their mid-1958 low, though still under the prerecession
peak by a similar fraction. In current-dollar terms a somewhat larger measure of recovery has been achieved, owing to
the advance of prices.
The pattern of change at midyear tended with few exceptions to mirror in reverse that of the 1957-58 downswing,
which had centered in manufacturing, mining and railroads
and had a more limited impact on the utilities.



.5 -1.4

-2.7

-3.5 -1.9

75.1

78.4

76.5

77.7

78.9

80.8

81.3

81.4

81.0

42.8
32 3

44. 1
34 4

42.8
33.7

43.9
33.8

44.3
34.6

45.2
35 5

44.9
36.4

45.0
36 4

44. 1
36 9

*For back data see Table 1-5 in the July 1959 Survey and, for years prior to 1956, in U.S.
INCOME AND OUTPUT.

The course of demand for business plant and equipment
last summer appears to have been relatively little influenced
by the current stringency in financial conditions. For corporate business as a whole, internal funds becoming available
during the quarter were less than last spring but in line with
most other recent quarters; the total of funds needed for the
financing of fixed capital investment and inventory-building
dropped as inventories were reduced.

Inventory liquidation in metals
Curtailed by work stoppages, national output fell short of
final purchases in the summer quarter, as business inventories
were drawn down. This movement was a sharp reversal of
the spring inventory buildup. Most of the swing occurred
in metal and metal-products manufacturing, which was afTable 3.—Personal Consumption Expenditures by Major Type,
Seasonally Adjusted Quarterly Totals at Annual Rates, 1957-58
and First Three Quarters 1959*
[Billions of dollars]
1957

1958

1959

1958
I

Business fixed investment

.1

.8

9.2 -.6
8.6 — 1 4

II

III

IV

I

II

III

Goods and services, total... 284.8 293.0 287.3 290.9 294.4 299.1 303.9 311.2 313. 3
Durable goods, total
Automobiles and parts _ __
Furniture and household
equipment
Other

40.3
17.0

37.6
14.0

36.9
13.5

36.7
13.6

37.1
13.2

39.8
15.7

41.3
17.2

44.1
18.8

43.6
18.2

17.4
5.8

17.4
6.2

17.2
6.1

17.0
6.1

17.6
6.3

17.8
6.3

17.7
6.4

18.8
6.4

18.9
6.5

Nondurable goods, total _ _
Food and beverages
Clothing and shoes
_
Gasoline and oil
Other

137.7 141.9 139.5 141.5 143.1 143.6 145.3 147.7 148.0
74.3 76.6 75.8 77.0 76.6 77.0 77.8 79.0 78.8
25.4 26.1 25.3 25.7 26.7 26.6 26.7 27.8 27.8
10.4 10.5 10.3 10.4 10.7 10.7 11.0 11.1 11. 3
27.6 28.7 28.1 28.3 29.1 29.3 29.8 29.8 30.1

Services, total
Housing
- -Household operation
Transportation
Other

106.7 113.4 111.0 112.7 114.2 115.7 117.4 119.4 121.6
35.2 38.0 37.0 37.7 38.4 39.0 39,6 40.3 41.0
15.8 16.9 16.5 16.8 17.0 17.2 17.3 17.6 17.8
9.2
9.5
9.1
9.3
8.9
8.9
9.3
9.0
9.1
46.8 49.4 48.6 49.2 49.7 50.3 51.1 52.1 53.4

*For back data see Table II-6 in the July 1959 Survey and, for years prior to 1956, in U.S.
INCOME AND OUTPUT.

* BUSINESS STATISTICS

Wontki

J. 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 freely. Data from private sources are provided
through the courtesy of the compilers, and are subject to their copyrights.
1958
Unless otherwise stated, statistics through 1958 and
descriptive notes are shown in the 1959 edition of SeptemBUSINESS STATISTICS
October Novem- December
ber
ber

1959

January

February

March

April

May

June

July

August Septem- October
ber

GENERAL BUSINESS INDICATORS
NATIONAL INCOME AND PRODUCT
Seasonally adjusted quarterly totals at annual rates:
National income, total
bil. ofdoL.

369.5

380.4

389.4

403.9

258.5
241 1
197 1
10 0
34.0
17.5

262.9
245 1
200 8
9 9
34.4
17.8

269. 9
250 9
206 2
9 8
34.8
19.0

278.9
259 4
214 0
98
35.6
19.6

279 3
259 5
213 5
98
36 3
19 8

Proprietors' income, totalcf
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
_. _ - _ d o
Inventory valuation adjustment
do

46.8
32.6
14 2
11.9

47 4
33.2
14 1
11.9

46 9
33.7
13 2
12.0

46 6
34.5
12 1
12 0

45
34
10
12

38.0
38 3
18.8
19.5

-.3

43.5
44 6
21.9
22.7
—1.1

45. 5
46 5
22.6
23.8

51.0
52 6
25.6
27.0
— 1.6

Net interest

do

14.4

14.7

15.1

15.4

15 8

-do

444.0

457.1

470.2

484.5

478 6

Personal consumption expenditures, total
do. _ _
Durable goods __ _
- --do _ _ .
Nondurable goods
do
Services
-do

294.4
37.1
143.1
114.2

299.1
39.8
143.6
115 7

303.9
41.3
145.3
117 4

311.2
44.1
147.7
119 4

313 3
43.6
148 0
121 6

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

54.2
35. 4
22.2
-3.4

61 3
37.3
23 2

69 8
39.7
23 9

77
41
26
10

5
0
0
4

67 0
41 0
27 0
— 1.0

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 ___

1.6

.2

-.9

Compensation of employees, total
Wages and salaries, total
Private
Military
Government civilian
_ __
Supplements to wages and salaries

do
-- do __
do
__ do do
do

-

Gross national product, total

Personal income, total..
_Less: Personal tax and nontax payments
Equals: Disposable personal income
_

do__
do
do

Personal savirig§

do

.8

—.9

6.1

1
8
3
0

.0

23.1
21.5

22 7
22.5

21 5
22.4

— 1.8
22 1
23.9

24 1
24. 1

93.8
53.1
44.5
40. 8

96.5
54.2
45.3
42.2

97.4
53 8
45.8
43.6

97.7
53 9
46 2
43.8

98.4
53 6
45 9
44 8

366. 3
43.4
322. 9

371 8
44.4
327.4

381 1
45.8
335.3

381 0
45 9
335. 1

23.7

23.5

24.1

21.9

363. 4
42.9
320.4 -26.0

-

GNP in constant (1954) dollars
Gross national product, total

bil. of dol

400 9

410 8

420 6

431 8

424 3

Personal consumption expenditures, total
do
Durable goods-..
__ _ _ _ _ _ d o _ _
Nondurable goods
do.- _
Services
do. _.

275 0
35.3
135.3
104.4

278 4
37. 5
135.6
105.3

282 3
38.8
137 3
106. 2

288 3
41 2
139 7
107.4

288
40
139
108

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

46.6
31.2
18.6
-3.2

53.0
32 6
19.3

59. 7
34 3
19.8

65. 7
35 1
21 3

9.2

56. 4
34 9
22 1
—.0

.5

—1 4

—2 7

35

19

78.9
44.3
34.6

80.8
45.2
35. 5

81.3
44 9
36.4

81.4
45 0
36.4

81.0
44 1
36.9

Net exports of goods and services

do

Government purchases of goods and services, total
bil. of dolFederal _.._.
- - do ...
State and local
._ . _ _ - _ _ . _ _ -do

1.1

5.6

8
6
4
8

r

Revised.
d"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.

529257°—-59




S-l

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