A Supplement to

the Survey of Current Business

INCOME

AND

OUTPUT

U. S. DEPARTMENT OF COMMERCE

OFFICE OF BUSINESS ECONOMICS

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A Supplement to

the Survey of Current Business

U. S. DEPARTMENT OF COMMERCE, LEWIS L STRAUSS, Secretary

OFFICE OF BUSINESS ECONOMICS, M. JOSEPH MEEHAN, Director

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FOREWORD

This volume does more than bring up to date the material contained in the 1954

edition of National Income. Not only have new series and formulations been added, but

the range of subject matter has been broadened to include our work in the field of income

distribution. Here, too, we discuss recent progress on the national income accounts, requisites for further development, and our program foj; the future.

This is our silver anniversary volume, since we undertook our first report in the

national income field in 1932-33 in response to Senate Resolution 220, 72d Congress. It is

in itself a mark of the progress that has been made in the comprehensive reporting on the

national economy within a framework that has contributed much to knowledge and understanding. The use of national income accounts as a measure of America's economic position

and progress is today commonplace. They are accepted as guides to business operations and

Government policy determinations. The language of the accounts through wide use in our

press has become a normal and understandable guide to the public.

This is the fourth volume of a series initiated in 1947, but departs considerably from

the format and content of its predecessors. It was considered neither desirable nor necessary

to repeat in this volume what is still valid in the old. For those who wish the full detail of

the methods and of the underlying concepts, copies of the 1954 edition are available for

purchase or consultation from the usual sources.

Our intent here transcends earlier objectives. While the full range of income and

product data is carried forward and annotated, a major effort has been made to view in

perspective the entire framework of analysis. To this latter end the net qualitative yield of

a quarter of a century is surveyed.

Persons with special interests, as in marketing, income distribution by size and areas,

or overall trend analysis, will find within these covers the material needed for current

appraisals and for the establishment of relationships over time. Those seeking fuller knowledge of sources and methods are here equipped with explanations of new series and all

significant alterations of the old.

For the many with strong preferences for those features of the accounts which would

best repay prompt further development, the sections on the program ahead, and on the

availability of statistical prerequisites, may bring constructive thinking to closer focus. We

hope they will aid in the implementation of a program to meet our basic data needs more

adequately. To further this objective, we have placed considerable stress upon the shortcomings of the basic statistical data and specifications of the requirements for improving

the national income calculations.

The extraordinary range of information which the Office of Business Economics must

utilize regularly in its national income work makes us more than ordinarily conscious of

our dependence upon the large number of cooperating public and private agencies and

individuals that assist us so generously. This blanket expression of appreciation is supplemented by the acknowledgments which are included in this volume.

Director, Office of Business Economics.

NOVEMBER 1958.

Hi

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ACKNOWLEDGMENTS

In presenting the results of our work on the national income

in recent years, OBE brings into focus the achievements of its

National Income Division and the contributions of those other

divisions whose activities aid in preparation of these accounts.

A general acknowledgment to the staff is thus appropriate. But,

as is always the case in bringing efforts to fruition in the form of

a book—which must derive from inspiration as well as from

workmanship—the responsibility for this volume fell largely upon

certain individuals to whom special thanks are due.

In addition to the principal authors listed on the title page,

Charles F. Schwartz and George Jaszi, the contributors to the

various parts and the particularized knowledge which they

brought to bear are here recognized with appreciation. Lawrence

Grose supervised most of the statistical work underlying the revision and expansion of series on the product side of the accounts.

Harlow D. Osborne was in charge of the property income estimates

and contributed much to Chapters 4, 5, and 6, concerned with the

development of the official income and product work. Selma F.

Goldsmith had responsibility for most of the income series and

drafted Chapter 3 analyzing the distribution of family incomes by

size. George M. Cobren supervised the preparation of the government accounts and drafted part of Chapter 8, on methodology.

The laborious and detailed work that went into the approximately 100 tables in the Statistical Section, involving both updating the existing accounts and development of new avenues of

information, was shared by numerous individuals. Those principally concerned are listed here alphabetically with their special

areas of competence:

Lillian P. Barnes—State and local government expenditures and

receipts; Edward O. Bassett—consumer commodities, involving

in particular the major task of incorporating data from the 1954

industrial censuses into the commodity flow estimates; Jacquelin

Bauman—corporate profits; Carolyn G. Bernhard—consumer

services; F. Beatrice Coleman—monthly personal income; Nancy

F. Culbertson—foreign transactions; Jeannette M. Fitzwilliams—

business and professional incomes; John A. Gorman—property incomes; Maurice Liebenberg—change in business inventories ai

corporate profits; Joseph Rosen thai—Federal Government e

penditures and receipts; Mabel A. Smith—quarterly consum>

expenditures; Robert C. Wasson—producers' durable equipmei

and capital consumption allowances; and Marilyn J. Young—en

ployee compensation and monthly personal income.

Loughlin F. McHugh, Chief of the National Economics Divi

sion, drafted Chapter 1 on economic growth and progress. Rober

E. Graham, Jr., who is in charge of OBE's regional income work

drafted Chapter 2. The graphic presentations in the volume were

executed by Anna M. Guindon and John A. Miskell.

To those portions of the volume relating to consumption and

investment OBE's Business Structure Division, Lawrence Bridge,

Chief, made valuable contributions. A similar role was performed

by the Balance of Payments Division, Walther Lederer, Chief, with

respect to international transactions.

Certain of the income and product series are prepared by

agencies other than the Office of Business Economics: Farm income by the Agricultural Economics Division of the Department

of Agriculture; direct estimates of personal saving by the Securities

and Exchange Commission; and new construction activity by the

Construction Industry Division, Business and Defense Services

Administration, U. S. Department of Commerce, in cooperation

with the Bureau of Labor Statistics of the Department of Labor,

Also to be noted is the cooperation of the Securities and Exchange

Commission with the Office of Business Economics in the collection

of the underlying plant and equipment investment data.

The statistics rest in a larger sense upon the work of the numer-

~uus Government and private agencies which provide the primary

source data needed to construct the national income and product

accounts. The cooperation of all these agencies is gratefully

acknowledged.

The progress recorded has been continuously aided by the

Bureau of the Budget, not only by its direct support, but by its

comprehensive recognition of our needs, which have been considered regularly in the development of the Government's statistical program.

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TABLE OF CONTENTS

Foreword

Acknowledgments

The Economy Viewed Through the National Income Accounts

Chapter 7. Economic Growth and Progress 1

2. Expansion of Regional Markets 27

3. Family Income and Buying Power 40

Development of the National Income Measures

Chapter 4. Progress in Past Quarter Century 47

5. What's New in the Present Volume 50

6. Directions of Future Research 62

Data Sources and Procedures

Chapter 7. Summary Evaluation of the Postwar Estimates 70

8. How the Estimates Were Made 73

Strengthening the Gross National Product Measure 74

Developments in the Estimation of National Income 86

Measurement of Quarterly and Monthly Movements 95

Recommendations for Improvement of Primary Source Data 102

Statistical Section

List of Tables 109

Table Cross References: 1954 National Income Supplement and Present Volume 112

Summary Data for 1957 114

National Income and Product Tables 117

I. Gross National Product and National Income 117

II. Personal Income and Outlay 143

III. Government Receipts and Expenditures 163

IV. Foreign Transactions 181

V. Saving and Investment 187

VI. Income and Employment by Industry 199

VII. Supplementary Tables 219

Index 232

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THE ECONOMY VIEWED THROUGH THE

NATIONAL INCOME ACCOUNTS

1. Economic Growth

and Progress

Growth and progress have constituted

the outstanding feature of the American

economy in the postwar period. The physical volume of total output in 1957 was

more than two-fifths above that of 10 years

earlier; on a per capita basis, output was

up more than one-fifth.

The postwar economic expansion has

been a continuation of the longer-term

course of developments in this country. The

salient facts of cyclical fluctuations and

basic growth are evident from Figure 1,

which traces the historical record of national output since 1909.

While growth in the past decade has not

been a steady process, the postwar setbacks

to business have been mild. With a concatenation of forceful influences—some temporary and some of a longer-term

character—conducive to expansion, prosperous conditions have prevailed throughout most of the past decade. The standard

of living has improved substantially.

Postwar developments have reflected

primarily continued operation of the same

basic forces that have characterized our

economic life in the past. However, new

factors have also been at work. Government has played an increasing role, in the

main to meet the defense requirements of

the cold war but also to discharge added

responsibilities in the civilian sphere

through a broad range of social and economic programs.

Another set of factors influencing the

postwar scene was the abnormality of demand and supply conditions immediately

after the war. On the one hand, there was

a translation into effective demand of consumption and investment that had been

postponed during World War II and the

1930's. On the other, capacity to produce

Economic Growth Characterized Postwar Period

Fig. 1

I960

civilian goods was limited pending the completion of economic reconversion. Because

of these circumstances, the rate of economic advance was above average in the

first half of the decade.

In these years, technological progress

that had been latent during the depression

and unusually rapid under the exigencies

of war, became embodied in civilian production on a large scale. However, continuous improvements in the techniques

and organization of production were an

outstanding feature of the entire postwar

period, and were both a cause and an effect

of the generally high rate of business investment.

It seems appropriate at this point to

review our progress—to establish its dimensions and characteristics, and to assay our

current status not only in the light of the

more recent past but in broader historical

perspective.

UTILITY OF INCOME MEASURES

Central focus is provided by the comprehensive and detailed statistics embodied

in the national income and product measures. These furnish at once a convenient

summary of recent movements in aggregate

income and output and a vast array of supporting information necessary for adequate

appraisal of economic developments. They

encompass within a uniform framework

the record of several decades so that current trends can be placed against the background of the past.

Size, composition, and use of the Nation's output, the industrial structure in

which it is produced, and the distribution

of the corresponding income flows—geographically and among the Nation's families—all are encompassed in the guides

provided by national income measurements.

The present volume incorporates improvements of these estimates stemming

from a major statistical review occasioned

by the availability of additional primary

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THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

data. Also, the estimates have been expanded to include new types of measurements which will give a sharper focus to the

view of the economy provided by national

income statistics.

In this chapter, we analyze some key features of the postwar economic record with

the aid of this information. Attention is

directed to the following major points:

1. Postwar output expansion to its present dimensions;

2. Changing market demand patterns;

3. Structural aspects of industrial activity and purchasing power;

4. Cyclical forces in the postwar economy.

Regional developments and shifts in the

size distribution of consumer incomes and

buying power are discussed in the two succeeding chapters.

EXPANSION OF THE POSTWAR

ECONOMY

Gross national product in 1957 was

valued at $440 billion, as compared with

$234 billion 10 years earlier. Over this period, prices rose 30 percent. Much of the

advance reflected the aftermath of World

War II, and another spurt came with the

Korean conflict, but pressures on the price

level were characteristic of the entire period. After adjustment for the price factor,

aggregate output expanded, as already indicated, by more than two-fifths over the

decade.

This expansion was unusually rapid but

a note of caution is necessary in appraising

the postwar record for its more enduring

aspects. A decade's experience is generally

not sufficient to indicate a long-term trend,

especially when developments are as influenced by temporary factors as they were

in the period under review.

TEMPORARY POSTWAR FACTORS

The decade started from a relatively low

base. Investment had lagged in the 1930's;

and during the war the stock of capital

available for peacetime use had been depleted by heavy wear-and-tear and by the

need to channel resources into the production of facilities and munitions required

directly for the war effort. Moreover, employment and real output immediately

after the war were affected by the technical and organizational bottlenecks associated with the transition to peacetime

production.

Productive capacity was thus capable of

very rapid expansion from the early postwar base. Demand factors were also conducive to a swift rise of output. Consumers had had to defer demand on a large

scale during the war, and correspondingly

had accumulated financial resources which

greatly improved their liquidity positions.

Backlog demands made themselves felt extensively in consumer markets once wartime restrictions had been removed.

Another factor affecting the consumer

market was rapid population growth. Population had not sustained its earlier expansion during the 1930's, when the increase

was roughly half that of the preceding decade. The birthrate began to rise during

the war and this rise was further accentuated after the termination of hostilities.

Similarly, the rate of new family formation

was particularly high during the early

postwar period. These demographic developments reinforced the buoyancy of consumer demand.

Incentives to invest were also powerful.

Against the background of a receptive consumer market, the business community was

eager to make up for capital depletion in

the prior span of years, to incorporate in

productive facilities past advances in technology, and to lay the basis for further expansion on a broad scale. As in the case of

consumers, liquid resources accumulated

during the war helped to finance postwar

expenditures. After-tax profits, which had

been restrained during the war, assumed

a more normal relationship to sales as

taxes were lowered and other wartime controls removed.

Foreign markets also had an influence

on United States production that was special to this period. Some of our customers

abroad were in a backlog-demand and liquid-asset position analogous to that of domestic buyer groups. Other foreign countries, whose productive operations had

been seriously damaged and disorganized

by the war, needed to supplement their

current output, both in order to maintain

minimum living standards and to initiate

programs designed to rebuild their capital

facilities, Crop failures further added to

foreign requirements in the short run.

With the U. S. Government financing

these requirements on a large scale, the demand for our exports soon rose to a postwar peak not approached in earlier or later

peacetime years.

In gauging our postwar expansion, it is

obviously necessary to take these extraordinary factors into account. In combination,

they resulted in an abnormally low early

postwar production base and in an exceptionally rapid economic expansion over the

next few years. If appropriate allowance

for these developments is made, the postwar achievement is seen to be broadly in

line with the record of the past half century, as depicted in Figure 1.

LONG-TERM GROWTH

The salient features of this long-term

record may be summarized as follows. The

$440 billion of gross national output in

1957 compares with an aggregate of $196

billion at the end of the 1920's—the last

prewar period of generally prosperous conditions—and with the $112 billion in 1909,

these earlier figures also being stated in

1957 prices. Thus, total real output has

quadrupled over the last 50 years. This

rise represents an average annual growth

of about 3 percent—a rate which held approximately both in the 1909-29 period

and in the subsequent 3-decade interval.

With population doubling, per capita

output in real terms in 1957 was twice that

of 1909..

In a basic sense, the increase in real output was even more pronounced. The available statistical techniques make only partial allowance for changes in the quality—

as distinguished from the quantity—of real

output. Inasmuch as improvements in

product quality have constituted a major

avenue of economic progress, the quantitative measures that can be calculated do not

reflect the full extent of our economic

growth.

FACTORS IN GROWTH

The increase in the number of manhours worked—an average of about 1 percent per year since 1909—has been a clearcut factor in the long-term growth of real

output. Employment, it may be noted, expanded substantially more over this period—IJ/2 percent per year. But the average length of the workweek declined

sharply, as employees and entrepreneurs

chose to take some of the improvement in

Fig. 2

Postwar Shifts in

Consumer Expenditures

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ECONOMIC GROWTH AND PROGRESS

their living standards in the form of shorter

working hours.

All of the other factors that—in addition

to man-hours worked—have contributed

to the growth of real output are summed

up in a conventional statistical calculation—"output per man-hour worked."

This measure has increased at an average

annual rate of about 2 percent over the

last half century, thus accounting for the

larger part of real output expansion.

Most of this gain has come from technological and managerial progress, a high

rate of capital formation including the development of natural resources, and constant advances in the education and skills

of the working population. Shifting of the

work force into activities in which productivity is relatively high has also contributed.

So have the economies of large-scale production and increased division of labor associated with the growth of population and

of the market economy.

It is not possible to quantify in a comprehensive manner these manifold factors

which have contributed to economic

growth. However, significant measures are

available of one of them—the stock of tangible capital assets used in the Nation's

productive establishments. These show a

striking secular growth in the amount of

plant and equipment used per unit of labor

engaged in production, and corroborate the

view that this growth is one of the major

factors explaining the rise in the productivity of American business.

A study of manufacturing recently completed by the Office of Business Economics,

the results of which are reproduced in

the Statistical Section of this report, is of

special interest in this connection. This

study developed for a span of 30 years

series for manufacturing establishments on

private investment in structures and equipment, on the depreciation of these two

forms of fixed capital on alternative valuation bases, and on net capital formation in

the form of both fixed capital and inventories. Time series on the total volume of

the various forms of manufacturing capital

were also provided; and these were compared with measures of man-hours worked

and of manufacturing output, to examine

the interaction of these key variables.

From the standpoint of the present discussion, the most important facts brought

out by this study are those relating to the

relative use of labor and capital in manufacturing. Over the last 30 years, the physical amount of capital applied in manufacturing production virtually doubled,

whereas the number of man-hours worked

increased by two-fifths. (See Figure 27 in

Chapter 5.) In other words, over this

period the amount of capital per man-hour

increased more than one-third. This increased application of capital of improved

efficiency undoubtedly has been a big factor in the growth of manufacturing production, which in 1957 had risen to 2J/i

times its 1929 volume.

The fact that the expansion of output in

manufacturing significantly outstripped

that in either labor or capital input underscores the importance of the other factors,

noted above, making for production

growth—factors which cannot be quantified.

MARKET DEMAND

PATTERNS

Ours is a market economy. Basic to its

organization is a reliance on countless

transactions among a multiplicity of independent economic units to produce and

distribute the Nation's output. Even Government, which has come to play such a

vital role, works its economic influence by

entering the market and by modifying,

rather than replacing, market forces. To

understand the functioning of the economy,

it is necessary to reduce the voluminous detail of business activity to manageable proportions. National income statistics perform this essential task—by delineating the

broad markets for national output and the

significant types of product and income

flows that picture their dimensions and

behavior.

We shall make a brief survey of each of

these markets in the postwar period. Attention will be drawn to the major forces

that affected their behavior, as well as to

new structural features.

Later in this chapter, it will be shown

how the changing patterns of market demand affected the industrial structure of

the economy, and how the various markets

interacted in the cyclical swings of postwar

business.

Apart from its contribution to an understanding of the overall economy, study of

these broad national markets is useful as a

background for more special types of market research focusing on the vast amount

of income and expenditure detail reported

in the Statistical Section of this volume.

Consumer Buying and Income

A major element of strength in the postwar economy was provided by consumer

demand for goods and services. The basic

support for this demand stemmed from the

dynamic elements in the economy which

produced a generally high and expanding

flow of income to individuals.

Personal income—which measures this

flow on a before-tax basis—totaled $348

billion in 1957 as compared with $192 billion 10 years earlier. This expansion of

four-fifths was similar to that in the current-dollar value of gross national product.

Personal income consists in the main of

individuals' earnings from current production. A significant additional part is disbursed by government in the form of social

security benefits and other transfer payments; these are partly offset by the contributions made by individuals to the financing of the government-administered

social insurance programs.

These government payments and socialsecurity deductions made a sizable addition, on balance, to the current purchasing power of consumers in the postwar period. This was more than offset, however,

by higher taxes. Income and other tax payments made by individuals to the Federal,

State, and local governments in 1957 came

to nearly $43 billion, or 12 ^ percent of total personal income. This tax ratio varied

between 11 ^ percent and 121^ percent

from 1951 to 1957, and for the earlier

postwar years averaged somewhat lower.

In the prewar period, personal taxes had

absorbed about 3 percent of personal

income.

With the proportion of income taken by

taxes not varying substantially over most

of the postwar period, the course of income

after taxes paralleled generally that of total personal income. The 1947-57 expansion in disposable personal income likewise approximated four-fifths in dollar

terms, and amounted to almost 50 percent

on a real basis—that is, after allowance for

the 10-year increase in consumer prices.

SPENDING AND INCOME

After the end of the war, individuals

stepped up their buying relative to income

in the attempt to fill backlog demands.

These were made effective by a greatly improved financial position reflecting both

accumulated liquid assets and lowered

debts. Consumer expenditures amounted

to 97 percent of disposable personal income in 1947—an exceptionally high ratio

which doubtless meant that an unusual

number of families drew on their liquid

assets to supplement current income.

The spending-income ratio, however,

was soon reduced as the special buying

needs were met. It averaged 94 ^ percent

in the 1948-50 period and 92/ 2 percent

from 1951 to 1957. In none of the 7 years

of the latter span did the ratio differ from

the average by as much as one percentage

point.

The ratio of consumer expenditures to

disposable income was thus relatively stable during most of the postwar period—

a fact supporting the view that income was

by far the principal determinant of consumption. This broad generalization in no

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THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

way minimizes the role of other factors influencing consumer spending, such as the

availability and use of consumer credit.

They were manifested most clearly in

quarterly variations in the income-consumption ratio; their influence in the shaping of short-term business fluctuations will

become apparent from the subsequent discussion of postwar business cycles.

Another point may be noted. The comparative stability found in the consumption-income ratio was not displayed by

the saving-income ratio; its relative fluctuations were wide even on an annual

basis. Since personal saving is the difference between much larger income and

consumption totals, movements in these

totals having only slight effect on the consumption-income ratio resulted in much

sharper relative changes in saving and in

the saving-income ratio.

CONSUMER PURCHASING AND GNP

The consumer market throughout the

postwar period absorbed around twothirds of total gross national product. This

share was lower than that which prevailed

in prosperous prewar years, when threefourths of total output flowed through

consumer channels.

This fundamental change reflected the

expansion in the role of Government resulting primarily from the heightened requirements of national defense, although

an increase in civilian-type services rendered by Government was involved also.

This shift to Government in the use of current output was accomplished through a

considerable step-up in the rates of taxation. The ratio of disposable personal income to GNP was thereby lowered; and,

in turn, there was a corresponding reduction in the ratio of consumption to GNP

as individuals in the past decade spent and

saved roughly the same proportions of

their after-tax incomes as they did in the

prewar era.

The reduction in the ratio of personal

consumption to production has been accompanied by a large expansion in the

latter, and the absolute volume of real consumption is currently far above prewar

levels. Compared with the late 1920's, it

is more than twice as high in the aggregate

and 50 percent greater on a per capita

basis.

SHIFT IN PATTERNS

The cross-currents in consumer markets

were many and varied in the postwar period. Out of the myriad developments,

however, certain broad patterns emerge.

Apart from the fact that they depict a significant aspect of the postwar economy,

knowledge of them may contribute background perspective for studies utilizing the

individual product detail.

Figure 2 highlights the main facts which

must be interpreted. It shows that the

goods-services distribution of consumer expenditures in 1947 differed quite significantly from that for 1929 or 1957. The

services share of total consumption in 1947

was below that of either terminal year; conversely, the share of nondurable goods in

1947 was relatively high—markedly above

1929 or 1957. The proportion of expenditures going for durable goods in 1947 fell

between the terminal-year ratios, and

thereby was not inconsistent with an apparent long-term tendency for such expenditures to absorb a rising share of the

total consumer market.

The divergent movements in the shares

of services and nondurable goods, it may

be added, proceeded more or less steadily

on an annual basis throughout the decade,

and involved strikingly different percentage changes in these categories of expenditures. From 1947 to 1957, total outlays by

consumers for services advanced 107 percent; those for nondurable goods, 48 percent. These compare with increases of 72

percent in total consumption expenditures

and 79 percent in disposable personal income.

These postwar shifts in the goods-services

composition of the consumer market can

be viewed broadly in one of two ways. On

the one hand, they may represent basic

tendencies to which trend significance

should be accorded, with the changes since

1947 representing a break with previously

established patterns. On the other hand,

the early postwar distribution of consumer

spending may have been shaped in considerable degree by temporary influences, in

which case the observed 1947-57 shifts,

particularly of services and nondurable

goods, would be viewed largely as movements back toward the more basic relationships depicted by the prewar distribution.

The latter view appears valid. The postwar record, it is believed, does not warrant

the assumption that over the long run the

trends in spending for services and for nondurable goods are markedly different, or

that these broad groups of outlays are substantially independent of changes in disposable income. Supply and price conditions in the consumer market of 1947 were

distorted not only by special aftermath-ofwar circumstances, but also by carryover

effects of the war and depression. In large

degree, developments in the ensuing decade

reflected a correction of these dislocations.

first be noted that they mainly reflected

differential price movements rather than

fundamental alterations of the consumption pattern in real terms. As Table 1

shows, the 1947 distribution appears much

less out of line with 1929 and 1957 when

the comparison is based on expenditure

data adjusted for changes in prices. Relative to 1929 and 1957, the 1947 share of

services is higher in the constant-dollar distribution than it is in the current-dollar

figures, and the share of nondurable goods

is correspondingly reduced. Some reduction is also apparent in the 1947 ratio of

durables to total real spending, indicating

that prices of such goods in that year were

also relatively high.

Prices of commodities dropped more

Fig. 3

Expanded Role of

Government Mainly in

National Defense

PRICE MOVEMENTS VARY

In an evaluation of the changes in the

goods-services distribution of consumer expenditures over the past decade, it should

than those of services in the early 1930's

and rose much more from then until shortly

after the war, at which time they were substantially higher, relative to 1929, than

service prices. The gap between service and

commodity prices narrowed substantially

in the past decade. As shown by the table,

prices of services moved up 40 percent, or

more than double the increase for commodities. Despite these changes, the composite implicit price index for services in

1957 was still up less from 1929 than commodities—60 percent as compared with 77

percent.

The steep advance in the dollar value of

service expenditures from 1947 to 1957,

and the lesser rise of commodities (especially of nondurables), thus reflected primarily a catching-up of the prices of

services with those of commodities. This

process was fairly pervasive among the

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ECONOMIC GROWTH AND PROGRESS

ments relating to housing, food, and clothing had a large weight in determining the

broad picture of price and volume changes

in the consumer market.

MORE GOES FOR HOUSING

Rental rates, which during the 1930's

had declined more and recovered less than

other prices, were held in check by war

and early postwar controls. They advanced

at a faster-than-average rate after the war,

but in 1957 were relatively quite low in

comparison with 1929. It is for this reason

that outlays for housing in 1957—covering

both cash rents and the rental value of

owner-occupied dwellings—still comprised

a significantly lower proportion of total

current-dollar expenditures than in 1929,

although the proportion was up substantially from the end of the war.

Measured in constant dollars, the 1957

share of housing in total consumption was

above 1929, as well as 1947. This fact is

attributable not only to the large volume

of new dwelling units that were added to

the housing stock in the postwar period,

but also to an improvement in average

quality of the units.

This improvement reflected an upgrading that accompanied the pronounced

shift from rented to owned quarters. The

long-term trend to home ownership in this

country had been interrupted first during

the depression and then by the wartime

restrictions on residential construction.

The trend was resumed in the postwar upsurge of residential building and was encouraged by unusually favorable terms of

mortgage financing. By 1957, about 60

percent of all nonfarm residences were

owner-occupied, compared with 40 percent in 1940.

It may be added that if housing is excluded from service expenditures the longrun relationship of services to total consumption is changed in both current and

constant dollars. In current dollars, exclusion of housing largely eliminates the

decline in the relative importance of services from 1929 to 1957. Over that period,

the real volume of services other than

housing declined appreciably—from 28

percent to 25 percent.

FOOD SHARE READJUSTED

The large food category accounts for

one-fourth of ,total consumer expenditures

and for more than one-half of the outlays

for nondurable goods. As may be seen

from the table, changes in the relative importance of these outlays—both before and

after 1947—were dominated by the food

component.

Purchases of food accounted for an extraordinarily high share of the total consumer dollar in 1947; the ratio of onethird compares with one-fourth for 1929.

This expansion reflected relatively large

increases in both food prices and the real

volume of food consumption. Largely because of the extraordinary demand for

food resulting from the deterioration of

agricultural production in other parts of

the world, food prices rose sharply after

wartime controls were lifted in the fall of

1946. With the improvement in world food

conditions and with other goods in relatively more abundant supply, food prices

advanced at a below-average pace from

1947 to 1957. In the latter year, food purchases as a proportion of total consumption—in both current and constant dollars—were not substantially out of line

with relationships prevailing in prosperous

prewar years.

The fact that the current-dollar ratio

for food was somewhat higher in 1957

than in 1929 is largely attributable to the

differing status of alcoholic beverages in

the two periods. It is also to be noted that,

apart from these beverages, maintenance

of the food share of total consumption

reflected in part the better processing and

packaging which were introduced in the

postwar years to attract the demands of a

consumer market characterized by rising

real incomes.

CLOTHING SHARE LOWER

Demand for apparel was strong in the

early postwar period, and clothing prices

moved up swiftly after the removal of

price controls. Compared with 1929, prices

of clothing and shoes in 1947 were up most

among the major categories of consumer expenditure. As a proportion of total

consumption, apparel purchases in 1947

were only slightly below 1929 in current

dollars, but were off substantially in real

terms.

Throughout the subsequent decade, the

consumer continued—in extension of an

apparent long-term tendency—to use less

of his consumption dollar for clothing. The

share of total real consumption going for

apparel declined from 10 percent in 1947

to Sy2 percent in 1957. The drop on a

current-dollar basis was even larger because of the fact, just noted, that clothing

prices were exceptionally high in the early

postwar period.

The Role of Government

Government has provided a large and

somewhat irregular market for the Nation's output in the postwar period. Total

purchases of goods and services by Federal,

State, and local governments ranged from

a low of 12 percent of GNP in 1947 to a

high of 23 percent in 1953. Recently, about

20 percent of total output was bought by

government.

Changes in the rate of government

spending have tended to be concentrated

in relatively brief periods. Much of the

upward movement to the 1953 high

occurred during 1951 and 1952, and the

subsequent downward adjustment was accomplished by 1955.

The relative rise in public purchases as

compared with the prewar period has been

substantial, and has in the main reflected

the requirements of national defense. Government purchases for civilian functions

have expanded only moderately in relation

to total output. (See Figure 3.) Changes in

the defense program have been the main

source also of the postwar fluctuations of

government spending.

IMPACT OF DEFENSE

National defense purchases—$44 billion

in 1957—consist mainly of expenditures for

the military functions of the Defense Department. Also included are goods destined

for military assistance to foreign countries,

outlays for atomic energy development, and

Table 1.—Percent Distributions of Consumer Expenditures by Major Groups, in Current

and Constant Dollars

Total goods and services

Durable goods

Nondurable goods

Food and beverages

Clothing and shoes - .. .. ._

Other

Services.

Housing

Other

Distribution based on

current dollars

1929

100.0

11.7

47.7

24.7

11.9

11.1

40.6

14.5

26.1

1947

100.0

12.4

56.5

32.9

11.4

12.2

31.1

9.4

21.7

1957

100.0

14.0

48.5

26.6

8.6

13.3

37.5

12.5

25.0

Distribution based on

constant (1957) dollars

1929

100.0

11.7

50.2

26.1

13.5

10.6

38.1

10.0

28.1

1947

100.0

11.8

53.2

30.5

10.2

12.5

35.0

10.5

24.5

1957

100.0

14.0

48.5

26.6

8.6

13.3

37.5

12.5

25.0

Implicit price deflators

(1957=100)

1929

58

58

55

55

51

61

62

84

54

1947

80

85

85

87

89

78

71

72

71

1957

100

100

100

100

100

100

100

100

100

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THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

the stockpiling of strategic and critical materials. Since 1953, and over the postwar

decade as a whole, defense outlays have

accounted for about one-half of total governmental purchases. Their share was

lower prior to the Korean war, and higher

during the years of that conflict.

Dollarwise, and also in percentage terms,

fluctuations have been particularly pronounced in the procurement of military

equipment, currently the largest single item

in a broad object breakdown of defense

outlays. Moreover, the composition of

equipment procurement has been subject

to continuing change, as rapid progress in

military technology has led to a high rate

of obsolescence in general, and more particularly to a shift from conventional items

to nuclear and other modern weapons.

Inasmuch as the production of military

goods is concentrated largely in durable

goods manufacturing, the impact of

changes in the defense program on the national economy cannot be inferred from

comparisons of the broad defense and

national output totals alone. As the subsequent analysis of postwar business fluctuations will show, the specific industrial

incidence of defense purchases is an essential link in the chain of causal events exr

plaining the dynamics of postwar business

conditions.

In an assessment of the longer-range

economic effects of the defense program,

its impact on scientific and technological

progress should be noted. The large defense

funds now being disbursed for research and

development have augmented substantially the total amount of our national resources devoted to this purpose. The direct

aim of these public outlays is of course the

strengthening of our military defenses, but

they also affect general economic productivity because of the close interrelations

which have developed between military and

industrial technological progress.

CIVILIAN FUNCTIONS EXPAND

As already indicated, purchases for civilian functions have accounted for about

one-half of the government total since the

war. State and local expenditures have far

outranked the nondefense outlays of the

Federal Government. Amounting to $13

billion in 1947 and to $36 billion 10 years

later, they rose steadily over the entire

decade. Federal purchases were about $5

billion in both terminal years, although

their decade average was somewhat higher.

The upsurge in State and local purchases—from less than 6 percent to 8 percent of GNP—is explicable partly in terms

of prior restrictions upon such spending.

During the war these restrictions reflected

the precedence of military over civilian requirements. In the prewar decade they

stemmed mainly from the impaired fiscal

position of State and local government

units.

Contrariwise, the generally prosperous

conditions of the postwar period improved

the revenue sources of State and local governments and their ability to borrow, and

otherwise strengthened their willingness to

embark upon construction and other programs. Population growth and shifts—such

as the movement to suburban residential

areas—provided a special impetus to the

demand for many services typically provided by these governments.

A detailed view of government services

in the national income framework is provided for the first time by the new functional breakdown of public expenditures

included in this report. Outlays for education—including new construction as well

as running expenses—currently account

for almost two-fifths of total State and local

purchases. Expenditures for highways (the

construction of which is financed to a substantial extent by Federal grants) account

for another 20 percent. The remaining

two-fifths implements a wide variety of

other functions, the most important of

which are health and sanitation, general

administration, public safety and protection, the provision of public utility capital

facilities, and the maintenance and development of natural resources.

Most of the categories of State and local

purchases have shared in the postwar expansion of the total. Inasmuch as a major

part of this expansion took the form of new

construction, which had lagged particularly

in the prior decade, categories of expenditures—such as education and highways—

which involve relatively high ratios of new

construction grew at particularly rapid

rates.

Developments in the area of Federal

civilian purchases have been less striking.

Examination of the record reveals the increased Federal responsibilities (as compared with the prewar period) in such

varied fields as foreign affairs, public

health, social security, the care of veterans,

transportation, agriculture, and natural resources. But fluctuations in Federal purchasing of sufficient size to make an imprint

on overall business conditions have been

confined to two major programs: expenditures for agricultural price support mainly

by the Commodity Credit Corporation,

and (in the earlier part of the decade)

foreign economic assistance in kind.

GROWTH OF OTHER EXPENDITURES

Purchases of goods and services are the

largest item on the list of government expenditures. Other categories are included

also, and have assumed increasing importance in the postwar period. In 1957, for

instance, governmental units purchased

$86 billions of goods and services. The total

expenditures of these units, as measured in

the national income accounts, amounted

to more than $114 billion on a consolidated

basis.

The difference consisted largely of transfer payments ($21 billion) and interest

paid on government debt ($6 billion). Although these payments do not involve the

performance of productive services, economic significance attaches to them because they establish broad sources of income that do not move with the cycles of

economic activity. In the case of unemployment insurance benefits, they actually

move in a contrary fashion and have a

stabilizing effect by partly offsetting

changes in earnings from production.

The growth of transfer payments has

been substantial. Setting aside international grants in cash, which in 1957

amounted to about $lJ/2 billion and are

discussed in the survey of foreign markets,

government transfer payments to persons

increased from about $11 billion in the

early postwar years to $20 billion in 1957.

They accounted for about 5 percent of personal incomes in the postwar decade, as

compared with 1 percent in 1929.

Table 2.—Government Receipts and Expenditures in the National Income Accounts,,

Selected Years, 1929-57

[Billions of dollars]

Receipts

Personal taxes

Corporate profits taxes..

Indirect business taxes..

Contributions for social

insurance..

Expenditures

Purchases .

National defense

Other

Transfer paj^ments, etc_-

Surplus or deficit

1929

11.3

2.6

1.4

7.0

.2

10.2

8.5

.6

7.8

1.7

1.0

1947

57.1

21.5

11.3

18.6

5.7

43 8

28/4

10.2

18.1

15.4

13.3

1950

69.3

20.8

17.9

23.7

6.9

61.1

39.0

14.1

24.8

22.1

8.2

1953

94.9

35.8

20.2

30.2

8.7

102.0

82.8

49.0

33.9

19.2

-7. 1

1957

116.2

42.7

21.6

37.6

14.2

114. 5

85.7

43.9

41.8

28.8

1-7

A few major developments explain the

postwar course of these government payments to individuals. Most important was

the expansion of the various social security

programs broadly defined, which has reflected both natural growth and extended

coverage. The old-age and survivors insurance program was the most important

item in this connection, accounting for $7

billion of the $9 billion net growth of transfer payments from 1947 to 1957. State

unemployment insurance benefit payments

have risen also as rates were increased, and

so have disbursements for the various forms

of public assistance.

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ECONOMIC GROWTH AND PROGRESS

Partly countering the growth of these

and other civilian types of transfers have

been disbursements to former military personnel. Military pensions, disability, and

retirement payments increased throughout

the postwar period. But their annual

growth was more than offset until recently

by the progressive decline of special programs—such as mustering-out and terminal leave payments, and readjustment,

self-employment, and subsistence allowances to veterans—which were at their

peak in the years immediately following

World War II.

HIGHER TAX YIELDS

As can be seen from Table 2, the enlarged flow of governmental expenditures

during the postwar period was accompanied by a record volume of taxation.

Combined receipts of all levels of government in 1957, at $116 billion, about

matched expenditures for that year. Individual income and other personal taxes

accounted for almost 40 percent of the

receipts aggregate, and corporate profits

taxes for almost 20 percent. Sales, excise,

property and other indirect taxes constituted more than 30 percent of the total,

and the remaining 10 percent consisted of

employment taxes and other contributions

for social insurance.

In spite of changes in tax rates, these

broad proportions are generally representative of the source pattern of governmental receipts for the postwar period as a

whole.

The main contrast with the late 1920's

lies in the relative expansion of individual and corporate income taxes, which are

the mainstays of the expanded Federal revenue structure, and in the employment

taxes associated with the social security

program which had not been established

in the earlier period. Mirroring these developments, the share of indirect taxes has

declined.

CUMULATIVE SURPLUS

The near-balance of receipts and expenditures which obtained in 1957 was

characteristic also of the postwar period as

a whole. As can be seen from Figure 4, periods of surplus and of deficit have alternated, reflecting largely the course of defense expenditures and the state of the

business cycle. Over the 1947-57 period as

a whole, however, government receipts

and expenditures, as measured in the national income accounts, were slightly better than in balance, resulting in a surplus

of $26 billion—about 3 percent of total receipts or expenditures. With the cumulative accounts of State and local governments showing a small deficit, the Federal

fiscal position was actually somewhat more

favorable than that shown by the combined figures.

Needless to say, approximate balance of

government receipts and expenditures

does not imply that government operations are neutral in their effects upon

business conditions. Given the current size

of government intakes and outpayments,

they have significant repercussions on the

economy whether or not they are in balance.

Some of the effects of governmental expenditures have been mentioned earlier.

An important consequence of the postwar

tax structure may be pointed up here, because it is relevant to the subsequent discussion.

The enlarged volume of taxation has

weakened the link between earnings from

production and the disposable income of

individuals and corporations. Changes in

the value of national production and in

the earnings arising from it are not transmitted fully to private income recipients

but are dampened by changes in the Government tax take. Quite apart from these

mechanical cushioning effects, a high level

of taxation enlarges the opportunity of the

Government to influence market demand

via tax rate adjustments. As will be shown

later, the role of taxation has been clearly

discernible in the course of postwar business cycles.

Foreign Markets

Exports are another major market for

United States production. Foreign demand

was high through most of the postwar

period. Centering at first on the needs of

economic reconstruction, it subsequently

reflected the general prevalence of prosperity and the investment programs all over

the world which have been aimed at longrun improvement in living standards.

Foreign purchases from the United

States are of course financed mainly

through foreigners' sales to us. In the postwar period, however, an unusually large

fraction of the financing has been dependent on loan and cash aid programs carried

on by the United States Government. Outlays under such programs aggregated $30

billion in the 1946-57 period. Adding aid

in kind—which, however, is treated in the

GNP measures as a component of Government purchases—brings the 12-year total

of United States aid to $62 billion.

Loan and grant funds from this country

played an especially important part in foreign trade financing under the conditions

of economic emergency just after the war.

Their relative role has declined since that

time, as imports have tended upward with

the general economic expansion. While

total cash grants and loans under these

Government programs have shown no

growth in the period, they have been continued on a substantial scale as part of our

overall international security program, and

are still of critical importance to free economies in many parts of the world.

EXPORTS 5 PERCENT OF OUTPUT

Foreign countries bought roundly 5 percent of the postwar output of the United

States, the fraction having reached a peak

of 8 percent in 1947. In absolute terms the

high point came in 1957, with an export

total of $26 billion. (These figures exclude

military and other Federal aid in kind.)

Though price advances contributed to the

growth of the total over the past decade,

there was a substantial increase in real

volume as well.

Superimposed on the basic tendency of

exports to expand since World War II has

been a series of large fluctuations. The

most notable of these was the bulge which

came as an immediate aftermath of the

war. Aside from emergency needs for the

relief and rehabilitation of foreign nationals at that time, United States products were needed to help make good the

destruction or undermaintenance of productive facilities abroad. Many countries,

moreover, had accumulated liquid reserves

and deferred requirements for United

States production, just as had the United

States consumer and capital-goods markets.

Subsequent fluctuations around the

longer-term uptrend stemmed from a variety of similarly transitory factors. A sharp

reaction followed the 1947 peak. Somewhat later, the Korean hostilities had brief

but widespread repercussions in world

markets. These, like the more limited effects of the Suez crisis of late 1957, were

additional to the changes attributable to

such factors as year-to-year variations in

world output and prices of agricultural

commodities, and to cyclical movements

in European business activity.

FINANCING OF EXPORTS

The accompanying table shows how foreign buyers obtained dollar exchange to

pay for their purchases of United States

products. Since 1947 such buying has

totaled close to $200 billion. All but about

$30 billion was balanced by United States

purchases from abroad. Two-thirds of the

remainder was financed through cash

grants by the United States Government,

and one-third through United States private and public investment.

Imports of goods and services grew

rather steadily throughout the period, and

in 1957 passed $20 billion—a figure more

than twice that recorded a decade earlier.

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8 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

After allowance for the rise in prices, the

bulk of this expansion is seen to have reflected an increase in the physical volume of

trade.

Dollar earnings of foreigners from sales

to the United States tended to finance a

progressively larger share of our exports

as war-born dislocations were overcome.

The export surplus declined from $9 billion

in 1947 to $1 billion or less annually in most

years of the 1950-55 period. There was,

Table 3.—Foreign Transactions in the National Income Accounts, Selected Years,

1947-57

[Billions of dollars]

Exports of goods and services

[mports of goods and

services. .

Export surplus

Net transfer payments

by Government-__

Net foreign investment

1947

17.9

8.9

9.0

.1

8.9

1950

13.1

12.5

.6

2.8

-2. 2

1953

16.6

17.0

- . 4

1.6

-2. 0

1955

19.4

18.3

1.1

1.5

A

1957

26.0

21.0

5.0

1.5

3.5

26.0

21.0

5.0

1.5

3.5

however, an increase in the past 2 years.

From 1952 to 1957, the portion of this

surplus financed by cash transfers from

the Federal Government was stable at

about $1% billion a year, or roughly half

as much as in the peak years of the Marshall Plan. These cash transfers are grants

for the furthering of economic development abroad. (Military aid, being given in

kind rather than in cash, is excluded here

along with economic aid in kind; this

treatment is consistent with that underlying the GNP measure of exports.)

Net foreign investment by the United

States has been comparatively limited in

most years since the early postwar period,

when the totals were swelled by Federal

Government loans of an emergency aid

character. In the 1950-55 period, in fact,

foreigners' new investment (including gold

purchases) here generally exceeded the

flow of United States capital abroad. More

recently, there was a rise in net foreign

investment by the United States. This involved a sharp expansion in the outflow

of American private capital and, in 1957, a

drop in new investment here by foreigners.

The net effect was to permit the financing

of a $4 billion increase in our export balance from 1955 to 1957 with relatively

little dependence on expansion in Government grants and lending.

Private investment abroad fluctuated

around $1 billion annually during most of

the postwar period, but rose in 1956 and

1957 to $3 billion or more. Direct investment of United States business firms in

foreign branches and subsidiaries accounted

for $2 billion in each of those years.

One of the characteristic features of foreign investment since the war has been the

relatively large contribution of direct investment to the total. Ordinary tradefinance credit and the purchase of foreign

Fig. 4

Federal Government Receipts and Expenditures

Billion Dollars

100

75

50

25

0

w

... 1..

1947 48

Receipts

. i. . ii.. .

49 50

QUARTERLY

Deficit J$

Jk>T \~ y Surplus

¥

Expenditures

-

I i i i 1 i i i ( i i i i i i i 1 i i i 1 l i i 1 i i i 1 1 1 I | 1 I 1

51 52 53 54 55 56 57 58 59

TOTALS, SEASONALLY ADJUSTED, AT ANNUAL RATES

securities as portfolio investments, on the

other hand, have been relatively less important than in prewar patterns of capital

outflow.

GOVERNMENT PROGRAMS

As has been noted, United States Government programs have released dollar exchange in our foreign markets not only

through the cash grants distinguished in

the table but also through international

loans and credits.

In addition to the foreign purchases of

our output which have been made possible

with these funds, large amounts of American goods and services have been bought by

the Federal Government for the use of

friendly foreign nations under our military

and economic aid programs. The $62-billion total which is analyzed in Figure 5

comprises such assistance in kind as well as

loans and cash grants. The great bulk of

this total is seen to have taken the form of

grants rather than loans. Two-thirds of it

was for emergency relief and other economic aid; the military-aid fraction has

been up in recent years, however, amounting since 1952 to over one-half of the total.

Domestic Investment

An essential requirement for a progressive industrial economy is that a portion

of current output be used for investment

in capital goods. The United States economy has characteristically featured a high

rate of investment; this has been a major

influence in the outstanding growth of our

standard of living.

Investment is typically one of the more

dynamic elements of demand. Its principal components—fixed capital and inventories—are both subject to rapid change.

The former accounts for the principal share

of total investment, and includes outlays on

industrial plant and equipment, housing,

and related facilities. Since multiple-use

goods of relatively long life are involved,

production of them need not be geared at

all closely to current use, and hence can

be bunched or postponed.

Inventory investment—the change in

business inventories—is an item which can

be either positive or negative as inventories

are raised or lowered. It is subject to pronounced short-term variability—a feature

brought out in the subsequent discussion

of postwar cyclical developments. At this

time, however, attention is called to one

central fact: Inventory holdings are a sizable element in the capital structure of

business, and their expansion with the

growth of the economy has accounted for

a significant part of total investment. In

manufacturing, which holds a large part

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ECONOMIC GROWTH AND PROGRESS

of all inventory goods in the economy,

stocks at the end of 1957 came to over $50

billion, equal to roughly three-eighths of

the total of capital goods in the industry.

Moreover, the buildup of manufacturers'

inventories over the 1929-57 span was

nearly as large as the growth in the net

real value of structures and equipment.

(See Figure 30 in Chapter 6.)

CAPITAL INVESTMENT HIGH

Gross fixed business investment—expenditures on nonresidential construction

and producers' durabl e equipment—

reached $47 billion in 1957, an all-time

high in terms of both current dollars and

physical volume. This investment was sizable throughout the postwar period, even

when reduced during the brief intervals of

cyclical contraction.

A large backlog of demand for capital

facilities had accumulated by the end of

World War II, stemming from the period

of underinvestment during the 1930's, restrictions imposed in the war period, and

the heavy wear-and-tear on equipment involved in the pressures of war production.

Once supply conditions after the war permitted resumption of volume production

of capital goods, business moved forward

almost continuously in its programs of

modernization and expansion, spurred by

the general prosperity of the period. These

programs traced three wavelike patterns

superimposed on an upward sloping

trend: the first culminating in 1948, the

second in 1953, and the third in 1957.

While the expansion in outlays for business facilities in the postwar period reflected in part rising equipment prices and construction costs, the new additions to the

physical stock of capital were of record

proportions.

Current-dollar outlays in this period

constituted about the same relative share of

GNP—around one-tenth—as in the prosperous 1920's, the most recent comparable

period of facilities expansion. Expressed in

constant dollars, the share of postwar fixed

investment was somewhat lower than in

that earlier period. However, it seems best

not to read this difference too literally,

inasmuch as the constant-dollar data do

not take complete account of quality

change and over the long-run quality improvements in fixed equipment probably

have exceeded those in other goods and

services.

CAPITAL STOCK IMPROVED

Ratios of fixed investment to total output, while helpful in studying market

demand patterns and fluctuations, do not

portray the extent to which the supply of

capital is geared to growth requirements.

To shed light on this latter aspect, information on productive capacity is needed.

While this is difficult to obtain, a few broad

qualitive aspects may be noted in assessing

the postwar investment programs of business.

The first relates to the environment in

which the postwar expansion was initiated

and carried through. While private investment was held back in the 1930's and the

war years, advances in science and technology had continued apace. The intensive

search for labor- and materials-saving

facilities encouraged by the pressures of

Fig. 5

Foreign Assistance

By U. S. Government

Cumulative, 1946-57

war requirements, and the subsequent continuing emphasis on research and development, quickened the pace of discovery of

new techniques. Thus, it was possible to

incorporate into the postwar programs

types of machinery, materials, and processes which were probably far more efficient

than ever before.

Secondly, it appears that the capital

stock in the past decade was in an especially favorable working condition in terms

of its age composition. To throw some light

on the "newness" aspect of facilities, an

attempt has been made to measure the relation of net equipment stocks (after depreciation) to gross stocks. Whereas this

ratio will tend to exceed 50 percent in a

growing economy, throughout most of the

period it was markedly above it, and exceeded the 55 percent ratio which applied

during the late 1920's.

A third factor to be noted about postwar

business fixed investment concerns its relative composition as between equipment and

construction: This differed markedly

from that of the 1920's. The shift involved

is covered in the lower panel of Figure 6,

which shows that business expenditures for

fixed capital in the recent period were

concentrated much more heavily upon acquisition of new equipment, and proportionately less upon plant expansion.

Also of interest in this regard is Figure

30 in Chapter 6. This depicts the striking

change which has occurred in the composition of capital assets in manufacturing

over the past several decades. Measured

in constant dollars, the net value (after

depreciation) of the stock of equipment

has grown very substantially whereas the

additions to manufacturers' plant have

been comparatively moderate.

It is clearly evident that business firms

have found it feasible to conserve on the

space aspect of their facilities. This basic

development may reflect in part a more

intensive utilization of existing plant capacity and, possibly more important, an improvement in design and engineering not

only of the newer buildings, but of the new

equipment put in place as well. There

would seem to be a reasonable presumption that this shift in application of the

business investment dollar has involved a

more productive allocation of fixed capital

resources.

ACTIVE HOUSING MARKET

In addition to the substantial accumulation of industry-type fixed facilities during

the past decade, investment in new housing

for the Nation's population also represented an important claim on resources

and at the same time contributed significantly to the favorable record of total business activity.

Nonfarm residentia l construction

amounted to $17 billion in 1957. This was

moderately below the record of $18^4

billion in 1955, but almost 2J/2 times the

dollar volume of 1947 which was still affected by conditions carrying over from the

war. Much of this dollar rise over the

decade represented higher construction

costs; after allowance for this factor, the

real volume of nonfarm housing put in

place in 1957 was half again as large as in

the earlier year.

During the first few years after World

War II, demands for housing associated

with normal family growth were augmented by demands of many families

which had been required to "double-up"

because of war-engendered shortages or

still inadequate financial resources. Thus,

demand was strong; the ceiling on housing

activity was set by the capacity limitations

of the period.

By the early 1950Js, these abnormal demand and supply conditions had been substantially alleviated. Construction of new

housing was exceptionally rapid in 1950,

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10 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

with the physical volume put in place that

year up almost 40 percent over the average

of the two preceding years. The volume of

activity tapered in 1951 and 1952, rose to

an all-time high by 1955, and receded over

the next two years. The quantity of housing put in place in 1957 equaled that of

1950, and was higher than in any prior

year.

For the postwar period as a whole, the

absolute volume of housing production was

far above any previous experience. Relative to the total value of output, nonfarm

residential construction was close to that

of the 1920's, which encompassed the previous housing boom.

A combination of favorable circumstances helped to make effective the record

housing requirements of the postwar

period. Incomes were high and generally

rising; other financial circumstances of

would-be homeowners, including their

liquid-asset position, were also generally

favorable; and the terms of financing were

made more liberal than ever before.

As the postwar experience unfolded,

mortgage financing terms became a significant factor influencing housing activity.

Liberalization of terms helped the expansion of residential purchases in 1949-50, in

1954-55, and probably in 1957-58. On

the other hand, in 1951-52 and 1956-57

changes in mortgage terms appear to have

constituted restrictive influences.

Financing Investment

The tremendous volume of postwar investment entailed financing on an unprecedented scale.

For the economy as a whole, the saving

required to finance the expansion of capital assets is derived from individuals, corporations, and government. Separate

data on the saving of these groups is given

for all postwar years in table V-l of the

Statistical Section; also recorded are the

matching flows of private domestic investment (fixed capital formation and inventory change) and foreign investment. In

this consolidated statement of saving and

investment for the Nation, the financial

investments involving transactions among

the domestic segments of the economy are

canceling.

PRIVATE SAVING PREDOMINATES

As is readily apparent from this table,

private domestic investment dominates the

overall investment picture. Foreign investment for the 1947-57 period taken as a

whole amounted to only 2 percent of a

gross investment aggregate on the order of

$575 billion.

On the saving side, perhaps the most

noteworthy feature revealed by the consolidated statement is that private saving—•

from individuals and corporations—accounted for all but a small fraction of the

postwar total. The portion of total national

saving contributed by government—

through an excess of governmental receipts over expenditures—was less than 5

percent for the 1947-57 period as a whole.

As pointed out earlier, the cumulative

governmental surplus on income and product transactions for this period amounted

to $26 billion—comprised of a surplus of

$30 billion for the Federal Government and

a deficit of $4 billion for State and local

Fig. 6

Business Fixed Investment

In postwar years was high ..

and featured a shift from

buildings to equipment

governments. On a year-to-year basis, it

may be emphasized again, swings in the

government surplus or deficit were sometimes sizable; they affected short-run economic developments much more than is

indicated by the cumulative data which

are used to provide a broad postwar

perspective.

SOURCE AND USE OF CAPITAL FUNDS

By reason of the overwhelming importance of individuals and corporations in

the postwar saving and investment picture,

two additional tables in the Statistical Section—V-9 and V-10—are particularly

relevant to the present discussion. These

contain postwar estimates of the sources

and uses of capital funds for individuals

(including those owning their own businesses) and for nonfinancial corporations.

Condensations of these materials, in the

form of cumulative data for the 1947-57

period as a whole, are provided in the two

accompanying tabulations. In addition to

data on gross investment in tangible assets

and on gross saving, these tabulations cover

transactions in financial assets and liabilities.

These "sources-and-uses" estimates may

thus be viewed broadly as elaborations of

the consolidated saving and investment

account—as breakdowns of it in the form

of separate saving-investment accounts for

individuals and nonfinancial corporations.

However, these three sets of data have not

yet been brought into full definitional and

statistical consistency; this will be accomplished as part of a comprehensive study

of saving and investment, described in later

chapters, now under way in the Office of

Business Economics. Meanwhile, although

comparisons of a detailed type should be

avoided, the present materials are adequate

to support significant generalizations regarding the postwar financing of individuals and of corporations, particularly when

based on data for the period as a whole.

INTERNAL FINANCING IMPORTANT

Before the discussion is thus directed to

the financial positions of these economic

groups, two further observations of a more

general import may prove of interest.

1. Taken together, the three statistical

tables we have been discussing indicate

that, for the postwar period as a whole,

changes in net financial claims on other

parts of the economy for government, individuals, and nonfinancial corporations

were not large in relation to the gross flows

involved.

For government, as already noted, the

cumulative $26 billion surplus for the years

1947-57 represented a small percentage

of the aggregate receipts or expenditures

of the period. In similar fashion, gross saving did not differ substantially from gross

investment in the case of either individuals

or corporations; the net change in financial claims (increase in financial assets

less increase in debt) did not bulk large in

terms of total financing requirements which

amounted to around $400 billion for each

group. (For corporations, this generalization includes an allowance for the fact that

the differences shown in the table would

be reduced if the figures were tied fully

into the national income accounts.)

As against this substantial similarity of

financial inflows and outflows for each of

the groups for the whole postwar period,

two additional points may be noted briefly:

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ECONOMIC GROWTH AND PROGRESS 11

that such similarity held to a much less

degree over short intervals within the period, and that it reflected offsets in a network of flows among the several groups

which have a particular significance for

study of the saving and investment process.

It will be understood that these comparisons of saving, investment, and financial flows of individuals and corporations

apply to each sector as a whole. The individuals or firms contributing to saving were

not necessarily the same as those making

the investments. Among individuals, the

processes of saving and investment are

usually so separate that there is little direct

causal relationship between the amounts

involved. In the case of corporations, however, the correspondence between the saving and investment processes is probably

sufficient for the availability of internal

funds to have had some effect on the

amount of corporate investment and, conversely, for the size of corporate requirements for investment funds to have influenced the amount of dividend payments,

and of retained profits.

2. For reasons already indicated, conclusions based on joint use of the consolidated saving and investment account and

the related tables for corporations and individuals should be kept on a general level.

These materials cannot be used, for example, to obtain precise measures of the

comparative changes in financial claims of

the several economic groups. It would appear, however, that for the period 1947-57

as a whole gross corporate saving was less

than gross investment, and that corporations absorbed additional funds from outside sources to finance the difference; that

government was a net lender for the period

as a whole; and that in the case of individuals also there was a net outflow of current

funds to help finance expansion elsewhere

in the economy, although the amount involved may have been rather small. It is to

be noted, however, that the surplus underlying government lending reflected an

excess of receipts over expenditures in

social insurance accounts, and therefore

may be viewed as constituting saving

directly on behalf of individuals.

FINANCING OF INDIVIDUALS

In the acquisition of tangible assets, the

major use of individuals' capital funds in

the postwar period was for investment in

housing. The remainder of physical investments made by individuals—also large—

was in their capacity as owners of noncorporate businesses, and consisted primarily of outlays for fixed facilities. (See

Table 4.)

The investment of nonfarm entrepreneurs involved in opening new businesses

was an especially dynamic factor in the

early postwar years. The business population had been restricted during the depression and the war, but with the return

to prosperous peacetime conditions new

firms were formed at a record rate. By 1948

the business population was restored to a

size more in line with the long-term trend.

Individuals channeled a sizable share

of their gross saving into the more liquid

types of assets in the past decade. About

$75 billion was added to cash and savings

accounts, or two-fifths of individuals' total

addition to financial assets. This was superimposed on the already huge accumulations built up during the war. When individuals are considered as a group, their

liquid-asset position was quite favorable

throughout the postwar period, far more

so than before the war.

Individuals also added around $70 billion to their equities in private insurance

and pension reserves. The funds thus set

aside were, of course, available through

financial intermediaries for financing the

capital requirements of business firms and

purchasers of other capital assets, such as

housing. A sizable additional volume of

saving in the form of insurance and pension reserves accrued to individuals

through government-administered funds;

such saving, as already noted, is regarded

in the national accounts as part of the

government surplus.

The remainder of the financial asset accumulation of individuals took the form

of purchases of securities, divided about

equally between government and private

issues. These purchases either represented

a direct contribution of individuals to the

financing of the issuing units or were an

addition to the indirect supply of personal

saving which flowed through banks and

other financial institutions to the investment markets.

These accumulations of physical and financial assets by individuals were financed

from gross saving and from borrowed

funds roughly in a 2-to-l proportion. The

postwar rise in individuals' indebtedness,

about $170 billion, was exceptionally rapid. This is explained in part by the relatively low indebtedness at the end of World

War II. The favorable wartime financial

conditions had permitted most individuals

to pay off a substantial amount of outstanding debt; at the same time, wartime

restrictions had limited the availability of

housing and consumer durables, the principal uses which normally involve substantial borrowing.

Use of borrowed funds was also fostered

by financial developments in the postwar

period. Interest costs were low by historical standards, and other terms of borrowing, especially for residential purchases,

were greatly liberalized. The largest share

of the total increase in personal debt took

the form of federally insured or guaranteed mortgages on which terms of financing were especially liberal. Undoubtedly,

these permitted the purchase of residential

properties by many individuals who might

not otherwise have aspired to home ownership.

The generally buoyant condition of real

estate markets, characterized by rising real

estate values, was also conducive to mortgage debt expansion.

It seems clear that on an overall basis

the financial position of individuals remained generally favorable throughout the

postwar years, although of course not all

individuals or groups shared the same experience. Given the high and generally rising volume of income, at no time was

Table 4.—Sources and Uses of Private

Noncorporate Funds, Cumulative Totals,

1947-57

 1

[Billions of dollars]

Sources, total 455

Personal saving . 171

Depreciation . 116

Nonfarm housing 34

All other 82

Increase in debt 168

Mortgage debt on nonfarm housing 81

Consumer debt 33

All other debt 54

Uses, total 455

Gross investment in tangible assets 282

Nonfarm housing 136

All other 145

Increase in financial assets 174

Liquid assets 73

Currency and bank deposits 40

Savings and loan associations

shares 33

Securities 34

Government 16

Corporate and other 18

Private insurance and pension reserves. 67

1. Data cover individuals (including noncorporate business), nonprofit institutions, and private pension and related funds.

there evidence that weaknesses in the financial situation of individuals significantly affected the growth and stability of the

economy.

CORPORATE FINANCING

As in the case of individuals, corporations added substantially to their financial

as well as physical assets in the postwar

period.

As shown in Table 5, total uses of funds

requiring financing amounted to about

$380 billion. Of this, three-fourths represented investment in tangible assets; onefourth, an increase in financial assets

taking the form of extension in book credit

to customers and additions to liquid and

other short-term assets.

Note should be taken of the fact that

corporations made only slight additions to

their liquid resources over the past decade.

This reflects for the most part the excess

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12 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

liquidity with which corporate business entered the postwar period. This favorable

position was fairly general among business

firms, and seldom if ever in the past decade

was liquidity an important independent

factor serving to limit business activity.

Internal sources—retained earnings and

depreciation allowances-—accounted for

three-fifths of total corporate financial requirements. It may be noted, however, that

whereas retained earnings consituted the

predominant form of internal financing in

Table 5.—Sources and Uses of Corporate

Funds, Cumulative Totals, 1947-57

 1

[Billions of dollars]

Sources, total 379

Internal sources 230

Retained profits 106

Depreciation 124

External long-term sources 85

Stocks 25

Debt 60

Short-term sources 64

Trade payables 27

Other 37

Uses, total 379

Gross investment in tangible assets 292

Plant and equipment 246

Inventories 46

Increase in financial assets 87

Cash and U. S. Government securities 13

Receivables and other assets 74

1. Excluding banks and insurance companies.

the early part of the decade, the steady

rise of depreciation made that source of

financing predominant in the more recent

period.

The reduction in the relative importance

of retained earnings was characteristic of

most industries, and reflected in considerable degree a gradual move away from the

low ratios of dividends to after-tax profits.

While these stemmed in part from heavy

investment requirements, they were also

a legacy of the financial troubles of the

1930's, as most corporate executives carried over at least into the early postwar

years a determination to establish comfortable equity cushions.

The almost continuous prosperity of the

past decade and its concurrent rebuilding

of plant and equipment slowly brought a

higher payout to stockholders. However,

as late as 1957 the dividend-earnings ratios

of most industries remained conservative

in historical perspective. These relatively

low postwar dividend payments permitted

a substantial buildup of equity funds to

offset in part the impact on corporation

financial structures of the rapid upsurge

in postwar borrowing.

The reduced share of retained earnings

in gross corporate saving also reflected the

substantial and steady postwar rise in depreciation allowances which was general

throughout corporate industry. This rise

stemmed from both basic factors and from

special influences related to tax law

changes. Depreciation allowances were

fairly low at the start of the period. As the

record-breaking postwar spending programs proceeded—generally involving expanded physical capacity purchased at

rising cost—the depreciable asset base and

depreciation allowances were steadily increased.

Rapid amortization provisions were introduced into the tax laws, first in 1950 for

defense-related expansions and later, in

1954, for all new facilities. Both of these

changes gave a special impetus to depreciation allowances in the more recent

period. By 1957, the 1950 provision was of

declining importance, but this was still

being largely offset by the rise imparted by

the 1954 change. Obviously, as time goes

on these special aspects will lose force since

there was no change in total depreciation

allowed, but merely in its time-phasing.

In addition to the huge amounts of gross

equity funds supplied from these internal

sources, corporations raised about $25 billion through the sale of new stock issues.

These were probably of somewhat lesser

relative importance than in earlier prosperous periods, but total equity financing—

internal and external combined—appears

to have supplied a relatively large part of

aggregate needs.

Corporate business borrowed substantial

sums in the postwar period, with the net

increase in interest-bearing debt from 1947

to 1957 amounting to $60 billion.

In consideration of this increase, it

should be noted first that debt and its

servicing requirements were exceptionally

low at the start of the period. Not only had

corporations paid off a substantial volume

of existing obligations from liquid funds

accumulated during the war years, but

Table 6.—Percentage Distribution of Gross

National Product, by Durability and Source

of Demand

Gross national product

Durable goods

Personal consumption

Producers' durable equipment

Government purchases

Other i

Nondurable goods

Personal consumption

Government purchases

Other1

Ser v ices

Personal consumption

Government purchases

Other1

Construction

Private

Government

1929

100.0

17.4

8 8

5.6

.4

2.6

36.5

36.1

.6

- . 2

35.4

30.7

4.8

- . 1

10.7

8 3

2.4

1947

100.0

20.2

7.1

1.3

3.0

41.1

39.9

.9

.3

30.7

22 0

8 4

.3

8.0

6.5

1.5

100.0

20.8

9.1

6.3

4.1

1.3

32.5

31.4

.9

.2

35.2

24.2

11.2

o

11.5

8 3

3.2

1. Consists of net exports and change in business inventories.

much of the debt still outstanding had been

refinanced on the more favorable terms

then prevailing.

Interest costs, while tending upward

over most of the last decade, have remained low as compared with the past.

Corporate bond yields (Moody's series)

currently average 4 percent, about one

point above the postwar average but almost

two points below the average for the 1920's.

Total corporate interest payments on outstanding debt in 1957 were up about twofifths from 1929, but over this period there

was a much greater rise in the source from

which these payments are made—profits

before taxes and interest. Interest paid in

1957 was 14 percent of these available

funds, compared with an average of 22 percent just prior to World War II and 34

percent in 1929.

CHANGING INCOME

STRUCTURE

The expansion of gross national product

has been accompanied by a corresponding

rise in the national income—a comprehensive alternative measure of national output

expressed in terms of the earnings derived

from production. From 1947 to 1957, the

national income increased from $198 billion to $364 billion, or four-fifths. This rise,

of course, reflected not only the expansion

in physical volume of production but also

the sharp advance in prices over the period.

Interest attaches to the national income

mainly because it lends itself to breakdowns which differ from those of the gross

national product, and hence throw additional light on the functioning of the economy.

In this section, the broad effects of

changes in the product composition of output on the industrial income structure are

traced, and it is shown how changes in that

structure, in turn, influenced the forms—

such as wages and profits—in which income has accrued. Industrial shifts affect

the forms of income mainly because the

various industries differ widely as to their

predominant type of legal organization—

e. g., corporate vs. noncorporate business—

and hence as to the income type patterns

they generate.

Analysis of these basic distributions of

income—by industry, by type, and by legal

form of organization—is of interest primarily because they provide essential links

in explaining the circular flow of income

and purchasing power through the economy as this is affected by, and in turn

affects, final demand as registered in the

GNP.

These three distributions have numerous other uses also. For instance, the industrial origin of national income is

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ECONOMIC GROWTH AND PROGRESS 13

indicative of the relative utilization of

economic resources by the various industries. Again, the breakdown by income

types is relevant to the consideration of the

distribution of income among economic

groups. The legal-form distribution is useful in a variety of studies bearing on the

institutional structure of the economy.

Industrial Patterns

One of the new tables in this volume

makes it possible to trace more clearly the

impact of shifts in the composition of final

product on the industrial distribution of

the national income. This is table VI1-5

in the Statistical Section, which provides

a classification of the gross national product by major type of product—durable

goods, nondurable goods, services, and construction.

In the conventional breakdown of gross

national product by type of expenditures,

the goods-services classification is provided

only for the consumer market, and, in the

case of construction, only the private component is shown. The new table extends the

goods-services-construction breakdown to

the entire GNP. It provides a superior basis

for studying the link between product demand and industrial activity, since the industrial structure of national income is

closely related to this comprehensive product classification of total output.

Table 6 shows this new classification in

a condensed form for 1929, 1947, and 1957.

It will be understood that the goods-services percentages given here differ from the

corresponding data already considered for

personal consumption. As indicated above,

the type-of-product classification in Table

6 is carried through for all components of

national product, not just for consumption.

Correspondingly, the percentage breakdowns in this table are based on total GNP,

whereas the earlier figures are based on

total consumption.

SHIFTS IN PRODUCT COMPOSITION

Over the past decade, the principal

change in composition of gross national

product was a relative decline in the goods

portion and a rise in the services portion.

This is evident from the following data

based on Table 6:

Goods

Services

C onstruction

Percent cf GNP

1929

54

35

11

1947

61

31

8

1957

53

35

12

This shift from 1947 to 1957 does not

appear to have been part of a long-run

trend. When the figures are considered in

historical perspective, and interpreted in

light of the particular economic forces at

work in the early postwar period, the

goods-services-construction breakdown of

GNP for 1947 appears out of line. Specifically, the goods component seems relatively high, and services and construction

correspondingly low. From this vantage

point, the postwar shifts in broad product

composition are seen to have represented

a return toward earlier, more normal patterns, rather than the establishment of new

basic movements and relationships. This

generalization is similar to that already

made in the case of personal consumption,

which, of course, is a major determinant of

the product composition of GNP.

When durable goods and nondurable

goods are looked at separately, it is clear

that the up-then-down pattern of the total

goods percentage reflects the movement of

nondurable goods, which are the larger

part of the total. The durable goods percentage for 1947 did not differ substantially

from what would have been expected on

the basis of the apparent long-term upward

trend in the relative importance of durable

goods in the gross national product.

These postwar shifts in the composition

of GNP stemmed from a variety of influences pointed out in the previous section

on Market Demand Patterns. Developments in all major markets—government,

consumer, foreign, and investment—contributed to the broad pattern of changing

product mix which emerged.

BROAD INDUSTRIAL IMPACT

The effect of this pattern on the industrial origin of national income is clearly

evident when the separate industry divisions are grouped according to whether

their output is mainly dependent, directly

or indirectly, on final demand for goods

and construction, on the one hand, or for

services, on the other. Needless to say, such

a grouping of industries must be somewhat

arbitrary. Many industries contribute to

the final value of both goods and services.

The transportation industry is an example.

Transportation services enter the value of

goods output in the GNP and are also

represented directly as services when

bought separately by final users, as in the

case of the transportation of passengers.

For purpose of the present analysis, the

goods-associated industries are considered

to be agriculture, manufacturing, mining,

contract construction, trade, and transportation; the services-associated industries

consist of finance, communications and

public utilities, services proper, and government.

The contract construction industry is not

classified separately by reason of the fact

that there is only tenuous correspondence

in movement between this industry on the

income side and construction activity as

included in the GNP. Among the several

differences in coverage between the two

measures, most important are these: That

the GNP construction component—unlike

the contract construction industry—includes force-account work and excludes altogether the value of maintenance and

repair. In the text table below, construction is included with goods in both the

GNP and national income breakdowns:

Goods (including construction) as percent of GNP .. - . _-

Goods-associated industries as percent

ofNT - .

Services as percent of GNP _ ._ -

Services-associated industries as percent

of NT

1929

65

64

35

36

1947

69

70

31

30

1957

65

64

35

36

As may be seen, there is a remarkable

correspondence between the goods and

services breakdowns of the gross national

product and national income. While this

may have stemmed in part from offsetting

errors in the income allocations, the tabulation establishes beyond doubt the pervasive influence of shifts in the composition

of final demand on the postwar industrial

income structure. This influence, it may be

added, is evident not only in the above

comparison involving the years 1947 and

1957, but on an annual basis as well.

Clearly depicted by the annual data is a

more or less steady rise in the services share

of both GNP and national income, and a

corresponding reduction in the share of

these aggregates accounted for by goods.

Since the postwar shifts in product composition of GNP reflected in the main relatively short-term adjustments, rather than

basic trends, the same generalization applies to the income changes which they

produced. This central finding should serve

as a background in more detailed studies

of the postwar industrial origin of national

income.

The breakdowns of GNP shown above

are based on the current-dollar values of

goods and services. If analogous breakdowns of constant-dollar GNP are prepared—on the basis of table VI1-6 in the

Statistical Section—the relative shares of

goods and services in 1947 appear to be

fairly well in line with long-run developments. In other words, the postwar shifts

in product composition of GNP were due

mainly to the price factor—to relatively

high prices for goods and low prices for

services in 1947, and to their subsequent

readjustment. Therefore, it seems evident

that measures of real income or output by

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14 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

industry would show developments for the

postwar period much more in conformity

with long-term trends than those displayed

by the current-dollar data analyzed above.

HIGHLIGHTS BY INDUSTRIES

While any detailed examination of individual industries is precluded, it will be of

interest to highlight the main developments

which occurred in farming, manufacturing,

trade, and government. The first three

account for the bulk of the goods-associated

industry group. Government forms a significant part of the services-associated

group, and is of independent interest.

With respect to the private-industry components of the latter group, it may be noted

that their rate of increase over the postwar

period generally exceeded that of total

national income. This uniformity of developments reflected the broad supply and

demand conditions which in the past decade

affected the services area of the economy

as a whole.

Income originating in farming has had

a long-term downtrend relative to total

national income. In the early postwar period, however, farming temporarily regained a share of the income total—nearly

10 percent—matching that of the late

1920Js. This experience was due to the

prevailing relatively high prices for farm

products which reflected a strong domestic

market reinforced by exceptional foreign

demand. The latter, as noted earlier, was

an outcome of the damaged state of world

agriculture and of the poor growing conditions abroad which characterized the

early postwar years.

As world crop and livestock conditions

improved, farm prices began to recede, and

the longer-term trends affecting United

States farm income reappeared. Beginning

with 1949, income from farming declined

steadily as a proportion of the national

income, to a figure of 4 percent in 1957.

Though the farm share of total national

income has fallen sharply, per capita income originating in farming has been well

maintained over the past quarter-century

in relation to the all-industry average.

Underlying this development is a strong

shift of labor away from farming; the

number of persons engaged in this industry

declined from 19 percent of all persons

engaged in production in 1929 to 8 percent

in 1957.

Manufacturing, the largest of the goodsassociated industries, increased greatly in

relative importance from 1929 to 1957—

from 25 percent to 31 percent of the national income. A figure similar to that for

1957 had been established by 1947 and,

with irregular variations, was characteristic

of the entire postwar decade.

The trend significance of this stability—

its meaning for the longer run—is quite

uncertain because of the many special factors that were operative in this comparatively brief period. Important among them

were the abnormally high output of goods

in the early postwar years, to which manufacturing was the major contributor; the

particular impact of the Korean conflict

upon this industry; and the three postwar

recessions which, although mild for the

economy as a whole, significantly affected

the course of production in manufacturing.

While measurement is not possible, it

would seem that up through the Korean

conflict the net balance of economic forces

was especially favorable for the manufacturing industry; one should therefore not

conclude that the postwar stability in the

ratio of manufacturing to total national

income rules out the presence of an underlying upward trend.

Income originating in trade is strongly

correlated with demand for goods, and followed quite closely the post-1947 decline in

the ratio of goods output to total production. Trade income rose from 15 percent

of the national income total in 1929 to 19

percent in 1947—then declined to 16 percent in 1957. This postwar decline was

broken only by slight rises in 1949 and 1954

as income from trade in those years weakened less than income from manfuacturing

and certain other industries particularly

affected by the recessions.

Income originating in government—the

compensation of government employees

(including military personnel) —accounted

for 9 percent of the national income in

1947. It moved up irregularly to 12 percent

of the total by 1952, and held approximately at that figure through 1957.

Measuring, as it does, the value of services of government employees, income

originating in government is included

above with the services-associated industries. Obviously, however, the factors bearing on the government component are

basically different from those affecting

service industries in the private area. The

moderate expansion of government services since 1947, and the spectacular growth

since 1929, resulted mainly from the increased responsibilities which the Federal

Government had to assume in the sphere

of national defense.

Income by Type

The industrial shifts just reviewed have

had much to do with changes observed in

the relative importance of the different

types of national income.

The type-breakdown of income is a

classification of earnings, before deduction

of direct taxes, according to the forms

which they take—employee compensation,

profits of corporate and of unincorporated

business, rental income of persons, and net

interest.

ROLE OF INDUSTRY SHIFTS

Shifts in the industrial origins of national

income affect its type-distribution because

the income type pattern generated in production varies widely from industry to industry. Such variations, as already noted,

are associated primarily with interindustry

differences in legal form of organization.

For example, an industry in which the corporate form of organization predominates,

while sole proprietorships and partnerships

are less important, will of course account

for relatively more corporate profits and

less noncorporate business net income than

will an industry in which the roles of these

two legal forms of organization are the

reverse. Even apart from differences in the

legal form structure, the proportions of the

various types of income originating vary

industrially, depending on the relative

amounts of labor and capital used and

many other factors.

The decline in income from agriculture

was an important source of change in the

type-distribution of national income after

World War II. Largely in reflection of this

development, the share of proprietors' income was reduced over this period—from

about one-fifth of the total national income

in the early years to a ratio somewhat in

excess of one-tenth at the end of the period.

A secondary, much less significant, factorin this connection was the decline in the

relative importance of trade—much of the

income from which arises in noncorporate

businesses—from the unusually high fraction of national income which it represented just after the war.

The rise in the government fraction of

national income is another feature of the

postwar industrial pattern which had an

effect on the distribution of income by type.

Since earnings from government enter the

income total in the form of employee compensation only, any expansion is reflected

exclusively in this particular income share.

It may be added that, over the longer

run, the growth in compensation of military and other government personnel has

been the most notable of several developments outside the ordinary business system

which have had a strong impact on the distributive shares of national income. For

many comparisons of the postwar and prewar distributive-share patterns, it is essential that these developments—which we

have traced in other reports, including the

1954 National Income supplement—be

taken into account.

A third marked shift since the end of

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ECONOMIC GROWTH AND PROGRESS 15

est. This likewise was associated in part

with a change in the industrial structure

of the economy: An expansion in the finance-insurance-real estat e category,

where activity increased with the pace of

capital formation and the growth in the

accumulated stock of capital. (Also important was an increase in interest rates over

the period as a whole; this, however, was

not an industry shift phenomenon.)

The changes in type-distribution noted

have of course not been mutually independent. A rise or fall in any type of income, others remaining constant, tends of

itself to produce a contrary movement in

the percentages of the total accounted for

by the others. The increases in the payroll

and interest fractions have been the larger

because other factors were tending to depress the proprietors' percentage, and vice

versa.

SWING IN PROFIT RATIO

Some of the most notable postwar

changes in the type-distribution of income

are thus seen to have involved industry

shifts which altered the legal form structure of the economy.

There is, however, one other change to

which this generalization does not apply.

A rise in the share of corporate profits in

the early postwar years was followed by a

downdrift—the dollar total showing a

horizontal trend after 1951 while national

income as a whole expanded. This swing

cannot be accounted for in terms of a

changing legal form of organization, for

the same movement appears in the distribution of income from corporate business

taken by itself. Moreover, detailed studies

have shown it to be characteristic of a

broad range of industries, so that a structural shift toward typically lower-profit industries apparently was not a major factor

in it.

The flow of corporate profits is of strategic importance for the functioning of the

economy, both through its role as incentive

to invest and through its influence on the

sources of investment funds, and its swing

in relative magnitude since World War II

deserves further examination.

Figure 7 shows that the share of profits

in total income originating in corporate

business increased from about one-fifth in

1946 and 1947 to a peak above one-fourth

in 1950 and 1951, and then moved downward to cancel the earlier gain.

The initial advance came after war controls had been dropped and as reconversion

from war to peacetime patterns of demand

and production was accomplished. In these

circumstances the relative changes in

prices, wages, and industrial efficiency

were such as to bring about a considerably

sharper advance in profits than in employee compensation, which is the other

major type of income arising in corporate

business.

After dipping in the recession of 1949,

the profit ratio resumed its advance with

the recovery of early 1950. It reached a

high point shortly thereafter under the influence of the large price and output

advances following the outbreak of hostilities in Korea.

A reaction toward the long-term average followed as the special pressures of the

time subsided. Besides this, the broad

movement apparent in the chart reflects

the 1953—55 cyclical dip and recovery,

with the ratio for 1957 also affected by

the business downturn which came in the

latter part of the year.

The tendency for the profit ratio in the

more recent period to revert toward the

long-term average is clearly evident from

the figures. Setting aside the years most

affected by cyclical conditions, the perinterest-bearing debt declined relatively to

corporate assets and interest rates fell relatively to rates of return on such assets. As a

result, a shift from interest to profits occurred within the property income flow.

Combined, these two snares accounted for

a fraction of total income originating in

corporations which varied between onefourth and one-fifth for the period 1922—

29; the range for the period 1951-57 was

between these same limits.

ROLE OF DEPRECIATION

Profits are obviously hard to measure

with precision. Difficulties associated with

the making of proper allowance for depreciation should be mentioned specifically.

The profit ratios charted here are based

upon calculations employing the depreciation concepts which have been used in corporate tax returns. These are not necesProfits and Property Income as Percent of Income

Originating in U. S. Corporations

Percent

Fig. 7

* Before tax, and including inventory valuation adjustment

centage for 1952 was below that for 1951;

1956, in turn, was lower than 1952; and

this tendency seems to have continued into

1957. During this period, the relative costprice conditions which had been associated

with the unusually rapid economic expansion of the earlier postwar years did not, of

course, persist.

The 35-year perspective afforded by the

chart shows the profit percentage to have

been fluctuating since 1951 in about the

same broad range as during the 1920's.

The comparison is even closer in terms of

the fraction represented by property income as a whole—including interest as well

as profits. Over the past several decades,

sarily the most appropriate for economic

analysis. For instance, they reflect changes

in the tax laws, such as the special amortization provisions enacted in 1950 and the

legalization of alternative formulae which

permitted accelerated depreciation under

the Revenue Code of 1954. Profit ratios

adjusted to eliminate the effects of these

changes might be higher by one or two

percentage points for 1957, and would

show a somewhat different movement over

the past few years. The broad pattern of

downdrift since 1951 which is suggested in

the chart would remain, however, and no

change in the interpretation of it would

seem to be called for.

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16 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

The fact that tax depreciation is based

on original cost values introduces an additional element that requires consideration, especially in problems involving

longer-term comparisons. For many objectives of economic analysis, it would be preferable to value depreciation in terms of

current replacement cost. Generally speaking, this change of method would raise

depreciation and reduce profits relatively

more in the postwar period than during

the 1920's. It is believed, however, that the

effect on the ratio of profits to total income

originating in corporate business would be

moderate. If, in addition, we take account

of the tendency of the special tax provisions to lower the profits measure in recent

years relative to prior periods, it would

seem reasonably certain that the conclusions drawn above as to the basic trend of

the profit ratio are independent of the

particular characteristics of the depreciation measure.

DISPOSITION OF PROFITS

The movement of corporate profits actually realized after taxes has reflected the

course of before-tax earnings as discussed

above, together with the changes in tax

rates. The latter, in turn, have been dependent upon the fiscal requirements of

the government, especially in connection

with its national defense responsibilities.

Corporate taxes were sharply reduced at

the end of World War II, and increased

again to meet the needs of the Korean

War. The termination of hostilities in

1953 was followed by a cut in effective

rates, the excess profits tax expiring at the

end of that year.

For the postwar period as a whole, average effective rates of Federal and State

profits taxes combined have ranged from a

1947-1948 low of less than two-fifths to a

Korean peak above 50 percent. These figures are much higher than any recorded

prior to World War II. The average for

1922-29 was less than 15 percent.

The disposition made of after-tax profits

since the war has also differed considerably from that of the prosperous 1920's,

and has reflected the shift in corporate

financing toward greater reliance upon internal funds. In general, the fraction paid

out in dividends has been markedly lower,

and that retained higher, than a generation ago. The payout ratio has moved up

considerably from year to year during the

more recent period, however, as was described in the section dealing with corporate finance.

POSTWAR CYCLICAL

DEVELOPMENTS

While one of the outstanding features of

the postwar period has been the vigorous

uptrend in business activity, the economy

has been subject to periods of cyclical

fluctuations with recessions occurring in

1948-49, 1953-54, and 1957-58.

These recessions were mild. There was

Gross National Product in Current and

Constant Dollars

Fig. 8

I i i i 11 1 i 1 1 i i 1 1 i i 1 1 i 11 1 i 1 1 i i 1 1 i i 1 1 t i 11 1 i 1 1 i 111 1 1111 1 i

1947 48 49 50 51 52 53 54 55 56 57 58 59

QUARTERLY TOTALS, SEASONALLY ADJUSTED, AT ANNUAL *RATES

no repetition of the serious cyclical disturbance which ensued shortly after World

War I, when total output dropped by 9

percent from 1920 to 1921, manufacturing

activity was off by 25 percent in the same

period, and unemployment in the latter

year averaged over 10 percent of the labor

force. The postwar recessions were rather

of the same order as the more moderate

contractions of the 1910's and 1920's, and

substantially milder than the downturn in

1937—38 when the economy moved sharply

lower despite the incomplete nature of the

previous recovery from the deep 1930-32

depression.

In this concluding section of the chapter, we shall trace the cyclical patterns of

the postwar period as they have thus far

emerged, bringing out their dimensions

and timing and the major forces contributing to the upswings and downturns. The

national income and product data which

will be relied upon for this purpose include not only the familiar quarterly figures on gross national product and national income, but also the newly developed quarterly series for GNP in constant:

dollars and other new breakdowns of the

current-dollar data.

The new quarterly information on real

GNP is a valuable supplement to the current dollar figures. By abstracting from the

influence of price changes, it makes possible

a comprehensive view of short-term fluctuations in real output and the underlying

elements of real demand. There is now

available a rounded picture of quarterly

productive activity in terms of currentdollar GNP, constant-dollar GNP, and the

prices at which output is valued.

The quarterly series for real GNP and

the implict price indexes are shown in

tables 1-5 and VII-3 of the Statistical

Section. These tables have been computed

with 1954 prices as a base. Because the

recent level of prices furnishes a more familiar reference point, the figures have

been converted to a 1957 base for present

purposes and are shown in Table 9 at the

end of this chapter.

The quarterly movements of currentand constant-dollar GNP over the postwar

period are traced in Figure 8. The similarity of the broad patterns of change is

clearly apparent. There are, however, significant differences in the movements of

the two series; those bearing specifically

upon the interpretation of the postwar

business cycles will be noted in the following review.

RISE IN PRICES

The spread between the current-dollar

and constant-dollar values of gross national product reflects, of course, the advance in prices which prevailed over much

of the postwar period, and which made for

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ECONOMIC GROWTH AND PROGRESS 17

a generally more pronounced upward

movement in the current-dollar line. The

impact of inflation was largest in the years

immediately after the war, when controls

were lifted and costs and prices were

brought into a new alignment. More than

one-half of the entire postwar price increase occurred in the 1946-48 period,

when extraordinary demands placed a severe strain on productive capacity.

The postwar period featured two other

pronounced upward movements in prices.

One was associated with the Korean conflict; the other occurred during 1956 and

1957. As can be seen from the chart, comparative stability prevailed in the period

1952-55, although the general average of

GNP prices edged upward. This experience reflected the better adaptation of supply to demand after the Korean buildup, as

discussed later; the dampening effects of

the 1953-54 downturn; and the offsetting

movements during the period in the agricultural and industrial components entering the final price structure. By early 1956,

agricultural as well as other prices were on

the upgrade in a general setting of buoyant demand, high output, and rising production costs.

It is noteworthy that in the past decade

there was an almost total absence of downward pressures on the general price level.

Even in the two most recent recessions,

prices edged forward. (See Figure 9.) A

moderate downward movement was registered in the 1948-49 period concurrent

with the break in agricultural prices in

early 1948.

DIFFERING DEMAND PATTERNS

Figure 10 shows on a quarterly basis significant groupings of aggregate real demand. The semilog, "ratio" scale used for

plotting purposes facilitates direct comparison of percentage changes, in contrast to

the preceding GNP chart which gives

equal weight to dollar changes regardless

of absolute size of the measured item.

In the second line are grouped those demand elements which historically have

been sensitive to cyclical influences: business investment (construction expenditures, purchases of producers' durable

equipment, and changes in business inventories) , purchases of consumer durable

goods, and foreign market demand as

measured by the net export balance. The

combined demand for these items was

cyclically sensitive also in the postwar period, although, as pointed out below, there

were notable exceptions within the group

which at times dampened the cyclical

movement of the combined total.

Federal Government purchases are

shown separately. Dominated by the requirements of national defense, this large

segment of demand exhibited wide and irregular swings which importantly influenced short-term movements in total activity—at times countering changes in

private spending and at others reinforcing

them.

Purchases by State and local governments m the past decade were an almost

steady orce for stability and growth.

The huge volume of demand for consumer nondurables and services also rose

General Price Level

Changed Little in

Postwar Recessions

Fig. 9

Quarterly Price Deflators for GNP

steadily and was subject to only minor

cyclical fluctuations. This demand and

State and local purchases together accounted for two-thirds of real gross national product in 1957.

The 1948-50 Movements

The peak of total business activity during the first business cycle after World War

II was reached in the final months of 1948.

As already indicated, strong inflationary

pressures which had been prevalent since

1941 dominated also most of the postwar

period leading up to that peak. With the

physical volume of production pressing

against capacity, much, if not most, of the

pressure exerted by intensive consumer,

business, and foreign buying was reflected

in price movements. The effects on prices

of the pent-up demands engendered by the

war and of the purchasing power created

by expansionary wartime financing had

been restrained for a time, but were manifested in the price level with particular

force during this period.

By 1948, however, these effects were

largely worked off. A better balance between supply and demand emerged, and

the price rise tapered. This was brought

about partly through an appreciable expansion of real output and partly through

a diminution in the intensity of some of

the demands, including those from abroad,

from which the greatest pressures had

emanated.

With these signs presaging a slowdown

in the pace of economic activity, three actions on the part of the Federal Government provided a fillip to production during 1948.

First, Federal income taxes on individuals were cut in the spring of 1948, adding

to the strength of consumer markets at a

time when some slackening, especially in

real volume, had become apparent.

Second, grants made under the newly

introduced Marshall Plan helped to stabilize the foreign market which had been

sliding since mid-1947.

Third, an increased defense program

was announced, and this was the major

factor in a strong upward movement of

Federal purchases during 1948. With Federal receipts tending lower as a result of

the tax cut and with expenditures moving

higher, the Federal Government impact on

the economy was strongly expansionary in

1948, in contrast to the moderating influence which had been exerted in earlier

postwar years.

A gradual rise in State and local government purchases reinforced the expansionary influence of Federal Government

activities.

RISE IN DEMAND TAPERS

The cresting of real output in 1948 was

due to the leveling of demands in the private economy.

At the cyclical peak in the fourth quarter of that year, the combined total of

personal consumption expenditures, fixed

investment, and net exports—a sum representing private final demand—was in real

terms fractionally below the corresponding

quarter of 1947, though up by 4 percent

in current dollars.

This movement in real purchases was

the net result of divergent changes in individual markets. Net exports in late 1948,

although supported by the Marshall Plan,

were much lower than in 1947. Real purchases of consumer durable goods and

dwellings reached peaks in the spring and

summer months, and by the fourth quarter

were moderately below year-before levels.

On the other hand, consumer expenditures

for services moved higher throughout

1948.

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18 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

tion and equipment—were virtually stable

throughout the year.

The expansion of final real demand during 1948 thus stemmed wholly from government. In part because of this shift,

much of the expansion centered in services, and the rise in commodity demand

flattened out. With this development, and

the increase in the productive capacity of

the economy, substantial inventory accuin the final quarter of 1948, business expenditures on nonresidential construction

and producers' durable equipment fell by

about one-sixth during the ensuing year.

The reduction was especially pronounced

in manufacturing, but nonmanufacturing

industries were also affected. (See Figure

11.) The principal exception was afforded

by public utilities, with gas companies

showing steady expansion and electrical

Gross National Product in Constant Dollars

Quarterly Fluctuations in Major Markets Differ Widely

Billion 1957 Dollars (ratio scale)

Fig. 10

QUARTERLY TOTALS, SEASONALLY ADJUSTED, AT ANNUAL RATES

mulation appeared. This had been prevented in 1947 by a general excess of

demand over supply.

It may be noted that total current-dollar

GNP in the final months of 1948 was

almost 9 percent above the last quarter of

1947. Roughly two-thirds of this rise reflected higher prices; total real output was

up by about 3 percent. Most of this increase

in volume had been achieved by the summer of 1948.

BUSINESS INVESTMENT OFF

The 1948-49 downturn centered in

business fixed investment and inventories.

From a high annual rate of $30 billion

utilities maintaining their fixed capital outlays throughout 1949.

With the shift in the final demand picture, business adopted more cautious buying policies in the latter part of 1948, but

inventory accumulation continued at a

substantial rate in the final quarter of the

year. After holding even in the first quarter of 1949, inventories were reduced

sharply in the second and liquidation proceeded at irregular rates during the remainder of the year.

Inventory liquidation was by far the

largest item in the decline of national output from the fourth quarter 1948 peak to

the second quarter 1949 trough. This

liquidation had a particular impact on

manufacturing, which supplies most of the

goods which compose the Nation's inventory holdings. Since the fall-off in fixed investment demand was principally in producers' durable equipment—also made

primarily in manufacturing establishments—it is apparent that factory output

bore the brunt of the decline in aggregate

production. Compared with the moderate—2 percent—decline in real GNP

from the fourth quarter of 1948 to the second quarter of 1949, the fall in manufacturing output amounted to almost 10 percent, and was especially sharp in the durable-goods industries.

STRENGTH OF CONSUMER BUYING

Private demands other than business investment held up extremely well in 1949.

After hesitating in the first quarter of

1949, real consumption moved up steadily

and by the fourth quarter was 4 percent

above the same period of 1948. The current-dollar rise was smaller, as prices of

commodities—especially of nondurables—

declined throughout the year.

The strength of consumer spending in

1949 was due in large measure to the fact

that the disposable income of individuals

held up much better than total output.

Whereas gross national product was reduced by about $10 billion on an annual

rate basis from the fourth quarter of 1948

to the second quarter of 1949, the drop in

disposable income during this period was

only $4 billion. This differential movement

was attributable to several factors: The

payment of sizable unemployment compensation benefits, the reduction in payments of Federal individual income taxes

as a result of the previous year's legislation,

and the maintenance of dividend payments to individuals notwithstanding a sizable fall in corporate profits.

Of comparable importance was the willingness of consumers to spend increasing

proportions of their available income—a

fact reflected in the steady cutting of personal saving from a 1948 peak of over $14

billion (annual rate) in the third quarter

of that year to $5 billion by the final quarter of 1949.

HOUSING REBOUNDS

Residential construction outlays decreased 15 percent from the spring of 1948

to a low point one year later. By the middle of 1949, they were moving upward

again, and in the final quarter the real

volume of building was one-eighth higher

than a year earlier.

Tightening of money markets and reduced availability of the more liberal kinds

of mortgage financing—Government supported—were influences in the softening

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ECONOMIC GROWTH AND PROGRESS 19

>f housing demand in early 1948. A reversil of these influences in 1949, following

he reduction in business investment denands upon capital markets and the easing

Df credit policies, was undoubtedly important in the quick turnabout of building

activity.

Government demand, which had moved

forward throughout 1948, continued to be

Government. The net export balance

showed an improvement as the domestic

recession lowered import demand.

RECOVERY IN EARLY 1950

It became apparent in the second half

of 1949 that the curtailment of output had

been excessive in relation to the existing

a strong expansionary force in 1949. Federal purchases leveled off at the high rate

which had been reached at the end of

1948, with farm price-support outlays an

important sustaining influence. State and

local government spending rose uninterruptedly during 1949, and was the major

factor in the further growth of total government demand in that year.

Foreign trade was a supporting influence in 1949. Exports were approximately

maintained for the year as a whole, largely

because of expanded foreign aid by the

stable volume of business sales. Accordingly, in early 1950 production was stepped

up, and the accumulation of inventories

was resumed. Meanwhile, the recovery of

residential construction had grown into a

sustained building boom, and consumer demand, already strong, was being bolstered

by large Government payments to veterans.

These factors, moreover, were being reinforced by a renewed upturn in business

fixed investment.

This widening resurgence of production

generated increases in employment and incomes, adding further impetus to consumer

purchasing. A business upswing of substantial dimensions was under way and was

carrying the economy toward full-capacity

operation. By the first quarter of 1950, the

volume of national production had moved

2 percent above its previous high.

The 1953-55 Decline and

Recovery

The second cyclical peak in total output

was reached in the spring of 1953, capping

a steady expansion in dollar and real output which had started with the recovery

from the 1948-49 recession.

KOREAN WAR BACKGROUND

Recovery from this recession was strongly

reinforced by the requirements of the

Korean conflict which erupted at midyear.

The defense program that evolved provided not only for a sharp step-up in the

direct military potential, but also for the

establishment of a broad base of productive

facilities to permit prompt economic mobilization in case of full-scale war.

Federal purchases turned up quickly

and entered a prolonged phase of rapid expansion. By the fall of 1951, they had

more than doubled and, still on the upgrade, were absorbing a much enlarged

share of total output.

In addition, purchases of the consuming

public moved upward sharply through

early 1951, with some bunching in the

scare buying waves of the summer of 1950

and the opening months of 1951.

Superimposed on these expanding final

demands was a rapid buildup of business

inventories. The increase which occurred

in the 12-month period ended September

1951 was by far the largest on record for

an annual interval.

Although total output rose briskly, these

huge demands outstripped the supply of

goods. Strong inflationary tendencies reasserted themselves, with the general average of final-product prices increasing

almost 10 percent in the year after the

start of the Korean conflict.

Around the middle of 1951., the economic situation changed significantly. Output continued to expand at a rapid rate,

and it became apparent that the production potential of the Nation had. been underestimated. Taxes had been raised, and

the establishment of price, wage, and other

economic controls afforded some assurance

that inflation would be kept in check.

As a consequence of these developments, and of the well-stocked position of

individuals after several months of extraordinarily heavy buying, there was a marked

easing in the urgency of consumer demand. This was paralleled by a curtailDigitized for FRASER 

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20 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

ment of business buying which entailed a

very substantial inventory readjustment—

with a notable scaling down in the accumulation of civilian goods.

In this setting, it was possible to achieve

a further substantial expansion in national

defense expenditures and allied fixed capital outlays concurrently with a high rate of

Civilian demand increased, particularly

in the durable goods lines previously restricted by controls and material shortages.

Residential, institutional, and State and

local construction, business investment in

plant and equipment other than in defenseconnected industries, and consumer and

inventory demand for automobiles and

Fig. 12

Postwar Downturns in

Plant and Equipment Expenditures

QUARTERS-SEASONALLY ADJUSTED

* Third quarter for 1958 anticipated in August reports to SEC-OBE

civilian consumption and a diminution of

inflationary pressures. From mid-1951 to

mid-1952, the rise in the general price level

was limited to 2 percent.

In the third year of the Korean conflict—from mid-1952 to mid-1953—the

Nation's capacity to produce continued to

expand substantially while the rate of

growth in national defense outlays tapered

off. This shift in the relation of supply and

demand permitted the relaxation and subsequent removal of economic controls.

other durable goods all contributed to a

spurt in economic activity.

From the second quarter of 1952 to the

corresponding period of 1953, gross national product increased 8 percent. Virtually all of this gain was in real output as

prices on an overall basis changed but little.

The bulk of this increase in real output

occurred in the earlier part of the period.

As the economy approached a cyclical peak

in mid-1953, there was a noticeable slackening in the rate of expansion. This mainly

reflected developments in final demand.

On a real basis, the rise in consumer expenditures, particularly for goods, tapered

sharply in the first two quarters of 1953

and substantial stability characterized busi -

ness fixed investment, residential construction, net exports, and State and local government purchases. Some further increase

in Federal outlays helped to sustain aggregate demand in this period, but a sizable

cutback in them was foreshadowed by the

January 1953 budget message.

BUSINESS TURNS DOWN

From the second quarter 1953 high of

$369 billion, the annual rate of gross national product receded almost 3 percent to

a low of $359 billion in the second quarter

of 1954. The decline in real output was

somewhat larger, almost 4 percent.

The onset of the business downturn was

manifested in a shift from inventory accumulation to liquidation. In essence, this

shift was a result of the changing demand

situation—the leveling of private purchases

and the altered picture for Federal spending.

Following several quarters of sizable accumulation which had served to replenish

stocks of civilian-type goods, inventories

held almost even in the third quarter of

1953 and were liquidated on a large scale

in the fourth. This turnabout, which was

concentrated in the hard-goods industries,

accounted for almost the entire drop in

gross national product in the second half

of 1953. Stocks continued to be drawn

down through most of 1954, but the pace

of liquidation was fairly uniform and thus

exerted no further downward pressure on

business activity.

The major element of decline in final

demand was Federal purchases. These were

reduced with the cutback in defense spending after the end of the Korean war. The

reduction, centering in the procurement of

hard goods, was moderate in the latter part

of 1953 but quite sharp in the first half of

1954. The contraction from the $59 billion

annual rate reached in the spring of 1953

amounted to $12 billion, and further small

decreases occurred in the latter half of

1954. In an evaluation of the impact of

Federal Government operations upon the

economy in this period, account should also

be taken of tax reductions and other fiscal

and financial measures discussed below.

Business outlays for fixed facilities constituted the other element of decline in final

demand during the recession. However, the

downdrift in these outlays from mid-1953

to the low point in the fourth quarter of

1954 was moderate in the aggregate.

As shown by the two charts on plant and

equipment, Figures 11 and 12, changes in

fixed capital expenditures varied considerDigitized for FRASER 

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Federal Reserve Bank of St. Louis
ECONOMIC GROWTH AND PROGRESS 21

ably by industry. There were pronounced

reductions in the iron and steel and nonferrous-metals manufacturing industries;

elsewhere, declines which occurred were of

generally smaller proportions, and some industries continued to expand their capital

outlays, running counter to the overall

trend.

SUSTAINING INFLUENCES

While these changes were occurring,

other demands for output were a major

sustaining influence on total business activity.

Consumer expenditures showed a dip—

concentrated in durable goods—in the

fourth quarter of 1953 and thereafter advanced steadily. Residential building activity was stable throughout the business

downturn and began to move up strongly

by the middle of 1954. Purchases by State

and local governments increased substantially during the recession, and foreign markets were a supporting force.

An easing of credit conditions helped

to maintain aggregate demand in the

1953-54 recession. Reflecting in part the

lessened requirements of business for outside funds and in part the positive policies

of Federal authorities, interest rates fell and

the terms of borrowing improved. This

change in the credit situation was especially

important for the housing market, and also

affected State and local government demand.

DISPOSABLE INCOME RISES

More powerful in their sustaining effect

on business activity were the forces that

cushioned disposable incomes and thereby

provided a support for consumer spending.

In the face of a $10 billion drop in the

annual rate of GNP from peak to trough,

the quarter-to-quarter flow of disposable

personal income at no time turned downward. In fact, over this span—from the

second quarter of 1953 to the corresponding quarter a year later—disposable income

actually went up by $2 billion, at annual

rates. Several developments accounted for

these divergent movements.

As has been indicated, the decline in

output centered in durable goods, and

therefore had its principal impact upon

manufacturing an d transportation, in

which the corporate form of organization

predominates. With employee compensation relatively well maintained, the bulk of

the drop in corporate production and income was reflected in before-tax profits.

However, the fall-off in profits on an

after-tax basis was cushioned by a sharp

reduction in tax liabilities, stemming not

only from the shrinkage in the tax base,

but also from the abolition of the excessprofits tax at the start of 1954. In addition,

corporations were in a position to increase

dividend pay-out ratios since in the previous period undistributed profits had been

relatively high. Dividend disbursements to

individuals were accordingly maintained.

In shoft, incomes distributed by business

fell much less than the value of business

production. Income receipts of individuals,

moreover, were bolstered by an increase in

transfer payments, mainly in the form of

unemployment insurance benefits. Further

adding to the disposable income of individuals was a substantial reduction in the

rates of Federal individual income taxation, which became effective in early

1954.

As in 1948-49, consumers spent increasing proportions of their disposable income

during the recession period. This was reflected in personal saving which, after having risen temporarily in the fourth quarter

of 1953, tended downward during 1954.

This independent strength of consumer demand reinforced the supportive effect of

disposable income upon aggregate activity.

UPTURN IN LATE 1954

During the first three quarters of 1954,

the expansion of consumer expenditures,

residential building, and State and local

government purchases roughly offset the

continuing cutbacks in Federal spending.

More broadly, this expansion provided the

foundation for an atmosphere of business

confidence—manifested, for example, in

the strength of the stock market—which

contributed to the near stability of business

investment in this period.

This setting of overall business stability

and confidence was a major factor in the

resumption of inventory accumulation

around the turn of the year, after several

quarters of liquidation had brought stocks

into better adjustment with current sales.

Around the same time, total final demand

turned up as the decline in Federal purchases leveled out.

The business recovery which thus got

underway received special impetus from a

spurt in automobile demand and output.

This was a major element in the upsurge

of economic activity both in the final quarter of 1954 and the first quarter of 1955.

Over this two-quarter span, two-fifths of

the rise in total output was accounted for

directly by purchases of automobiles for

consumption and business purposes and

accumulations of automobile inventories

in manufacturing and trade.

Subsequently, the base of the recovery

broadened. The economy continued to

benefit from the pervasive influence of the

high level of automobile production, but

expansion was provided by other markets,

notably private investment expenditures

for construction and equipment and consumer expenditures other than for automobiles. Inasmuch as Federal purchases

were maintained at their reduced level

during 1955, and State and local purchases went up only moderately, virtually

the entire economic expansion stemmed

from the growth of private demands.

The upswing of activity that started in

the fall of 1954—after the economy had

remained close to its recession low during

the first three quarters of the year—was

one of the most vigorous on record. By the

first quarter of 1955, real output had

passed the previous cyclical peak of the

spring of 1953, and in the final quarter exceeded it by 7 percent.

Absorption of the unused resources and

additional capacity that had become available in the recession made for an exceptionally rapid expansion of production

through the first half of 1955, with the

general price averages advancing only

moderately. During the latter months of

that year the production growth rate slackened somewhat with the economy's approach to peak-volume operation and, concurrently, price pressures intensified.

The 1957-58 Swing

A brief review of the key developments

that followed the 1955 cyclical recovery

and projected the economy to new highs

in income and output will provide background perspective on the downturn in the

latter part of 1957.

Economic expansion during 1956 was

characterized by divergent and partly offsetting tendencies in demand and supply.

Business demands for fixed capital were

intense, continuing the strong upward

movement that had been resumed in early

1955. In some lines, these demands outstripped the economic resources—productive capacity, materials, and labor—that

were available to meet them. The strong

investment climate of 1956 was manifested

Table 7.—GNP and Final Purchases, Selected

Quarters, 1955-57

(Seasonally

Quarter

IV, 1955

IV, 1956

I, 1957

11,1957

III, 1957

GNP

(billions of

dollars)

409

430

436

441

446

adjusted at annual rates)

Implicit

price

deflator

(1957=100)

94

98

99

100

101

Billion J

ONP

435

441

442

443

442

> of 1957

Inventory

change

8

5

1

3

2

dollars

Final

purchases

427

436

441

440

440

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22 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

also in a continuing substantial buildup of

inventories.

Foreign trade contributed to the further

business advance in 1956, with export demand up strongly during the year. Mirroring primarily the uptrend in State and

local purchases, government demand was

also an expansionary influence.

On the other hand, weaknesses developed in some other markets. Most notably,

automobile demand fell sharply from the

abnormal high reached in 1955; and residential building, which also had contributed to the upsurge in 1955, receded

moderately, partly because of tighter credit

conditions. The market for consumer durables other than autos was generally sluggish, with purchases of some types of

household goods below 1955.

With the economy operating on a very

high plane, the growth of real output

within the year 1956 was of course less

than that realized during the period of

cyclical recovery from the 1954 low. The

1956 output rise was further limited by the

demand-supply imbalance s indicated

Fig. 13

Postwar Cyclical Changes

In Inventories

1948 1949 1950

QUARTERLY NONFARM TOTALS, SEASONALLY

ADJUSTED, AT ANNUAL RATES

above. In some industries, where demands

were particularly urgent, production was

restricted by supply considerations; in

others, where supplies were potentially

ample, it was held down by a lack of

demand.

Reflecting an overall demand that was

extraordinarily high in spite of spot weaknesses, and was accompanied by generally

increasing unit-production costs, there was

a sharp upturn in prices during 1956. The

rise in costs reflected the continued increase in wage rates as well as a spurt in

real labor requirements per unit of output;

the latter stemmed from the general tapering in the output rise and from the imbalances between supply and demand that for

large segments of the economy led to capacity utilization either above or below

optimal rates. Another factor in the costprice situation was a renewal, in early

1956, of the rise in farm prices; these had

been receding for several years.

FACTORS UNDERLYING DOWNTURN

The tenor of business activity was

changing as the economy moved into 1957.

Some easing in the buoyancy of demands

was apparent, and productive capacity to

satisfy them was becoming more ample.

With the improvement in supplies relative

to demand, there was a sharp cutback in

the rate of business inventory accumulation, following the sizable buildup of stocks

which had occurred during 1955 and 1956.

As evidenced mainly by the gradual leveling off in capital expansion programs reported by business, the intensity of demands for plant and equipment slackened.

The further expansion of these massive

outlays through the third quarter of 1957

appears to have reflected the updrift of

capital goods prices.

But changes also emerged in other elements of demand. Among these was the

drop in our export trade from the exceptionally high rate reached early in 1957 by

reason of the Suez crisis and other special

factors—a rate markedly out of line with

the purchasing ability of foreign countries

as derived from our own buying of foreign

goods and services and our capital exports.

Again, weaknesses in the market for consumer durables became more apparent,

with unit sales of automobiles and some

other major items off moderately fr6m

prior levels.

In their effects on the general demand

situation, these several factors were reinforced by the depressing influence of

Government decisions in the spring of 1957

to ease budgetary pressures by cutting back

the future rate of Federal purchasing.

These decisions, which resulted in a sharp

reduction in new Government contracts,

directly affected current business production and also dampened the general economic outlook.

By contrast, consumer demand for nondurable goods and services continued to

advance in the period leading up to the

fourth-quarter 1957 downturn. Accounting

for virtually the entire rise in the value of

gross national product from the first to the

third quarters of 1957, it was the dominant

element in the maintenance of record economic activity in that period.

Several factors were instrumental in the

strength of consumer buying. Supplementing the high rate of earnings from production in the spring of 1957 were the initial

disbursements of social security benefits

made to groups that had been brought under coverage by prior legislation. An increase in the willingness of the consuming

public to spend—as evidenced by a declining saving ratio—appears to have been an

additional element. It should also be noted

that, with corporate profits squeezed by

unfavorable cost-price developments, an

exceptionally large part of the additional

amounts spent by consumers in this period tended to flow back to them in the

form of incomes available for spending in

the market for consumer goods and

services.

Table 7 summarizes the course of output, prices, and final demand as these

broad economic variables were shaped by

the developments which have been reviewed. It shows a steady rise in currentdollar GNP, the accompanying rise in

prices, and the gradual flattening in the

real volume of output and final demand.

The stability of final real demand in the

1957 period is particularly noteworthy.

The upward momentum was ended, and

some indications of a cyclical downswing

had emerged.

DECLINE SHARP

The recession which began in the early

fall of 1957 was sharp but uneven in its

incidence and brief. From its peak annual

rate of $446 billion in the third quarter,

GNP fell by 4/ 2 percent to a low of $426

billion in the opening quarter of 1958, and

then firmed in the second. The decline

was somewhat larger in real terms—5J/2

percent—as final product prices continued

to rise on the average.

This reduction in the physical volume

of national output exceeded the peak-totrough movements of 2 percent and 4 percent registered in the 1948-49 and 1953-

54 recessions; common to all of them,

however, was the occurrence of a major

part of the drop in a relatively brief period.

The drop in total output from the third

quarter of 1957 to the first quarter of 1958

was concentrated largely in investment and

investment-type goods. Business investDigitized for FRASER 

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Federal Reserve Bank of St. Louis
ECONOMIC GROWTH AND PROGRESS 23

ment in plant, equipment, and inventories,

and consumer purchases of durables fell

in the aggregate by nearly one-fourth—

from $90 billion to $69 billion, at annual

rates. The impact of this drop was almost

wholly upon durable-goods industries—a

pattern characteristic of all three postwar

recessions despite the substantial differences among them in the particular markets from which the declines in final

demand stemmed.

DEMANDS FOR OUTPUT VARY

The sharp swing in business inventories

which occurred during the 1957-58 recession reflected the prior leveling or easing of

real demand for important segments of

industry, as well as its concurrent decline.

Of the $7 billion annual-rate decline of

GNP from the third quarter to the fourth,

$5 billion was accounted for by a switch

from inventory accumulation to liquidation. In the first quarter of 1958, the basic

demand factors at work expressed themselves more clearly. A shrinkage in total

final demand contributed about as much

to the further fall of national production

as did the intensified rate at which stocks

were being reduced. Thereafter, final demand firmed, and inventories—continuing

down at somewhat diminished rates—exerted less of a drag on economic activity.

(Inventory fluctuations in the 1957-58 recession, as well as in the two earlier postwar

cycles, are shown in Figure 13.)

Fixed investment tilted down in the

fourth quarter of 1957 and was reduced

sharply in the first quarter of 1958. For the

half year as a whole, the reduction accounted for one-fourth of the drop in

total GNP. The further decline of fixed

investment in the spring quarter was

milder, and business plans for capital outlays reported in the summer of 1958 indicated a firming in the second half of the

year.

The course of our foreign trade, as already indicated, contributed importantly

to the timing of the recent business recession. Down already in the third quarter of

1957 from the high reached early in the

year, exports dropped sharply in the next

half year. Imports, the demand for which

in recent years has been comparatively insensitive to the trend of domestic business,

were well maintained throughout the period.

In contrast to the earlier postwar experience, demand for consumer durables

in the 1957-58 recession underwent a sharp

reduction, with most of it occurring in the

opening quarter of 1958. (See Figure 14.)

The change in the economic climate in the

prior quarter contributed to the magnitude

of the decline as, with economic prospects

uncertain, many large-ticket purchases

were postponed. A 20 percent cut in automobile sales, from a level that had already

been rather disappointing, was the major

underlying event; consumer purchases of

furniture and household equipment were

down also, but less so.

Federal purchases advanced through the

spring of 1957, reaching a quarterly peak

ahead of the general turn in business. A decline in them was foreshadowed by the

sharp fall in orders that accompanied the

cutback in military programs. Purchases

receded slightly in the second half of 1957

before a reversal of military procurement

policy turned them up again in 1958. The

change in forward orders was again sharper

than that which occurred in actual purFig. 14

Durable Goods in Three

Postwar Cycles

QUARTERLY TOTALS, SEASONALLY

ADJUSTED, AT ANNUAL RATES

chases, and was more indicative of the impact of Federal purchase programs on business activity.

The remaining demands for national

output were well sustained, following a

general pattern that had characterized also

the business adjustments of 1948-49 and

1953-54. Purchases of State and local governments continued to increase without interruption. Housing construction tended

to recover from its prior decline in the first

half of 1957, although subject to special

disturbances stemming from the abnormally severe 1958 winter weather. Consumer

purchases of nondurable goods and services—in contrast to those of durables—

turned up in the first quarter of 1958, after

the nondurables had dipped slightly. Prices

paid by consumers advanced throughout

this period; on a real basis, the dip extended into the first quarter of 1958.

DISPOSABLE INCOME MAINTAINED

A major influence supporting the consumer market was the degree to which disposable personal income held up despite

the sharp drop in national output. From

peak to trough, income decreased $4 billion, at annual rates; value of output, $20

billion. This development, as can be seen

from Figure 15, was one which the recent

downturn shared with the preceding postwar recessions, and the chain of causation

was much the same.

Quite briefly, the 1957-58 demand reduction centered in durable goods (including inventory holdings). It hit hardest

industries—notably manufacturing and

transportation—which are primarily corporate. The volatile corporate profits share

bore the brunt of the output decline—falling from $43 billion to $32 billion, at annual rates—but dividend payments to

individuals held stable as part of the fall

in before-tax profits was absorbed by taxes

and part by undistributed earnings. Adding concurrently to the income receipts

of individuals from production was a

mounting flow of Government transfer

payments, reflecting chiefly the automatic

cyclical expansion in unemployment compensation.

ROLE OF GOVERNMENT SUPPORTS

The role of Federal Government receipts

and expenditures in helping to stem the

recent business decline is brought out in

Table 8, which presents these transactions

as they enter the national income accounts.

The outstanding feature of the change

in the Federal fiscal position from the 1957

peak in business activity to its trough in

the first quarter of 1958 was a decline in

the quarterly tax take amounting to $7

billion at annual rates. This occurred primarily in corporate profits taxes and reflected the cut in the underlying profits

base. In conjunction with the fall in receipts, Federal expenditures showed a rise

of $3 billion, mainly in transfer payments.

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Federal Reserve Bank of St. Louis
24 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

Table 8.—Federal Government Receipts and Expenditures in the National Income Accounts,

Selected Quarters at Seasonally Adjusted Annual Rates, 1948-58

[Billions of dollars]

Receipts

Personal taxes

Corporate profits taxes

Other...

Expenditures

Purchases of goods and services

Transfer payments to persons..

Other

Surplus or deficit (—).-..

IV

1948

42.6

18.2

11.6

12.8

38.8

22.1

7.4

9.3

3.8

II

1949

38.5

16.2

9.2

13.1

42.4

22.3

8.9

11.2

II

1950

47.3

17.3

15.5

14.5

39.0

17.2

10.3

11.5

8.3

1953

72.3

32.5

21.0

18.8

79.4

58.9

9.5

11.0

-7. 0

1954

63.3

29.0

16.1

18.2

68.7

47.1

11.6

10.0

-5. 4

1955

71.7

31.3

19.9

20.5

68.1

44.7

12.5

10.9

3.5

I II

1957

83.3

37.7

21.0

24.6

79.9

49.7

15.9

14.3

3.4

1958

76.1

36.6

15.4

24.1

82.8

49.7

18.3

14.8

-6. 6

II

1958

76.1

36.5

15.6

24.0

86.0

50.7

20.3

15.0

Table 8. In the 1957-58 downturn, Federal authorities took numerous steps to

ease credit conditions and otherwise encourage the use of private purchasing

power. Those relating to credit included

the Federal Reserve Board's lowering of

reserve requirements and rediscount rates

and its open market operations, and the

supporting actions by other Federal agencies engaged in financial activities, especially those bearing on the mortgage

market. In addition, the process of contract

awards for defense and other procurement

was stepped up, as was noted, and the Congress provided higher authorizations for defense and other requirements.

RECOVERY PRONOUNCED

The first of these changes helped to

shield the current buying power of the

private economy from the downward pressure to which before-tax production earnings were subject. The second constituted

a positive supplementation of that buying

power. The combined influence of these

revenue and expenditure changes was mirrored in a shift from a quarterly surplus on

income and product account of $3 billion

at annual rates to a deficit of $7 billion.

Under the influence of increases in both

transfer payments and Government purchases, this deficit rose to $10 billion in

the second quarter of the year.

The table also shows that a similar

mechanism was effective in the two prior

business recessions as well, although its

precise working was affected by differences

in tax and expenditure policies.

In the 1948-49 downturn, when a $4

billion surplus was converted into a deficit

of the same size, the prior cut in the rates

of the individual income tax accentuated

the shrinkage in tax receipts associated

with lower earnings, and provided additional support to disposable personal incomes. A step-up in the foreign assistance

program was another special feature of

this period.

The pattern of automatic tax shrinkage

and expenditure rise was altered drastically

in the 1953-54 downturn. Superimposed

upon the reduction in tax take caused by

the declining tax base were the abolition

of the corporate excess profits tax and

substantial reductions in the individual

income-tax rates. More than offsetting

these autonomous changes on the receipts

side, however, was the large reduction in

Government purchases. Expressing the

combined effect of these developments, receipts and expenditures moved into closer

balance during the second postwar recession, and the quarterly deficit was reduced

from an annual rate of $7 billion to $5/ 2

billion during the year of declining business activity.

Taxes and transfer payments, it is important to note, have a stabilizing effect

during periods of recovery also. Mainly

because of the upsurge in the corporate

profits tax base, taxes rose sharply in the

two periods of recovery shown in the table,

and acted as a brake on disposable incomes

available to the private economy. On the

expenditure side, the shrinkage in unemployment insurance benefits provided an

offset to the generally continuing uptrend

in transfers.

The influence of the Federal Government was not confined to the changes in

receipts and expenditures summarized in

Aggregate economic activity firmed in

the second quarter of 1958 as prior demand

declines tapered and prior increases continued or picked up strength.

The further drop in business capital expenditures was comparatively mild; foreign demand leveled out; and consumer

purchases of durables were only fractionally

lower than in the first quarter. Already on

the upgrade by reason of the shift in military procurement policy, Federal purchases

received added impetus from agricultural

price-support operations; Federally aided

transactions in the market for residential

property heralded an increase in construction activity; personal consumption expenditures for nondurables and services

Fig. 15

Consumer Buying Power better maintained than

Output during postwar recessions

QUARTERS-SEASONALLY ADJUSTED

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ECONOMIC GROWTH AND PROGRESS

Table 9.—Gross National Product, Seasonally Adjusted Quarterly Totals at Annual Rates, in Constant Dollars, 1947—58

[Billions of 1957 dollars]

25

Line

2

3

4

5

6

8

9

10

11

12

13

14

15

16

Gross national product

Persona] consumption expenditures

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 exports of goods and services

Government purchases of goods and services

Federal -

State and local

1947

I

300.6

202.4

22.9

108.9

70.6

46.7

20.8

9.4

11.4

24.9

1.0

1.5

9.5

42.0

22.7

19.3

II

302.7

206.1

24.2

110.7

71.3

45.5

20.7

9.1

11.6

25.0

- . 2

1.9

9.7

41.4

21.6

19.8

III

305.7

207.0

24.6

110.1

72.3

45.5

22.8

10.6

12.2

25.0

-2. 2

- . 2

9.8

43.3

23.1

20.2

IV

311.5

207.1

25.8

108. 5

72.8

54.3

26.3

12.7

13.6

25.6

2.4

3.3

7.1

42.9

22.1

20.8

Year

305.0

205.7

24.4

109.5

71.8

47.9

22.5

10.6

11.9

25.1

.3

1.6

9.0

42.4

22.4

20.0

1948

I

309.0

208.4

25.1

109.5

73.7

53.9

24.8

12.5

12.3

26.3

2.8

2.2

3.5

43.2

22.2

21.0

II

316.8

209.3

26.0

109.1

74.2

57.3

26.1

13.2

12.9

26.2

5.1

3.5

2.2

47.9

26.5

21.5

III

319.3

209.7

26.4

108.4

74.9

57.9

26.0

12.7

13.2

26.0

6.0

4.5

2.0

49.6

27.8

21.8

IV

321.3

210.9

25.5

110.0

75.4

56.2

25.1

11.7

13.4

26.9

4.2

3.3

2.4

51.7

29.6

22.1

Year

316.7

209.6

25.7

109.3

74.6

56.4

25.6

12.6

13.0

26.4

4.5

3.4

2.6

48.1

26.5

21.6

1949

I

315.4

210.3

24.8

110.1

75.4

48.1

24.1

11.2

12.9

24.3

- . 3

.5

4.1

52.9

29.6

23.3

II

314.0

214.2

27.2

110.7

76.3

41.6

24.2

11.3

12.8

23.6

-6. 2

-5. 0

4.1

54.1

29.8

24.3

III

319.6

215.4

28.3

109.9

77.2

45.8

25.4

12.6

12.7

22.4

-2. 0

- . 9

3.4

55.0

29.9

25.1

IV

316.5

219.8

29.8

111.6

78.4

42.0

26.9

14.1

12.8

21.4

-6. 4

-5. 9

1.5

53.3

27.5

25.8

Year

316.4

214.9

27.5

110.6

76.8

44.4

25.2

12.4

12.8

22.9

-3. 7

,-2 . 8

3.3

53.8

29.2

24.6

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

Gross national product

Personal consumption expenditures

Durabl e good s ._,.__ _

Nondurabl e good s

Services

Gross private domestic investment

New construction.. _ -

Residential nonfarni

Other

Producers' durable equipment

Change in business inventories—total

Nonfarm only

Net exports of goods and services

Government purchases of goods and services

Federal _ ._

State and local

1950

I

326.7

221.6

30.4

112.2

79.0

52.4

28.5

15.5

13.0

21.1

2.8

2.6

1.9

50.8

24.3

26.5

II

336.7

225.3

31.2

113.3

80.8

60.7

30.6

17.0

13.6

24.5

5.6

5.1

1.2

49.5

23.1

26.4

III

351.2

237.2

39.1

116.4

81.7

63.8

31.8

18.2

13.6

26.7

5.3

4.4

- . 1

50.3

23.9

26.5

IV

358.6

228.3

33.7

112.4

82. 1

74.7

31.5

16.9

14.5

26.4

16.8

15.9

.6

55.1

28.6

26.5

Year

343.4

228.1

33. 6

113.6

80.9

63.1

30.8

17.1

13.7

24.6

7.6

7.0

.8

51.4

25.0

26.5

1951

I

361.2

233.8

34.6

116.5

82.7

66.8

31.1

16.3

14.8

24.9

10.8

10.0

. 5

59.9

33.2

26.7

II

369.0

225.7

29.1

113.5

83.1

71.0

29.6

14.2

15.4

25.5

15.9

15.2

2.5

69.8

42.7

27.1

III

376.2

228.9

29.4

115.3

84. 1

65.6

28.9

13.3

15.6

25.8

10.9

10.3

4.4

77.3

50.1

27.2

IV

376.9

231.3

29.0

117.2

85.0

59.3

28.6

13.4

15.2

25.7

5.0

4.5

4.4

82.0

54.8

27.1

Year

370.7

229.9

30.5

115.6

83.7

65.5

29.4

14.2

15.2

25.5

10.7

10.0

3.0

72.3

45.2

27.0

1952

I

379.8

231.4

28.3

117.7

85.5

60.1

29.0

13.6

15.4

26.0

5.0

4.6

4.2

84.0

56.7

27.3

II

379.5

234.3

29.7

118.7

85.9

52.6

29.1

13.9

15.2

26.5

-3. 0

-3. 6

3.5

89.1

61.5

27.6

III

383.2

235.5

28.2

120.4

86.8

56.2

29.0

14.0

15.0

23.2

4.0

3.6

. 4

91.2

63.8

27.4

IV

393.7

242.2

33.0

121.4

87.8

60.3

29.9

14.7

15.2

25.2

5.2

5.0

- . 6

91.7

63.9

27.8

Year

384.1

235.8

29.8

119.6

86.5

57.3

29.3

14.1

15.2

25.2

2.8

2.4

1.9

89.0

61.5

27.5

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

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—total

Nonfarm only .... _ ._

Net exports of goods and services.

Government purchases of goods and services

Federal

State and local _ _ _.

1953

1

401.2

246.2

34.6

122.9

88.7

60.1

30.6

15.0

15.6

26.7

2.8

3.4

- . 2

95.1

60.9

28.3

II

406.1

248.5

35.1

123.9

89.5

60.6

31.1

15.2

16.0

25.7

3.7

4.5

c

97.6

69.3

28.2

III

402.7

248,2

35.3

122.9

90.1

58.3

31.2

14.9

16.3

26.2

.9

1.6

- . 6

96.8

68.0

28.8

IV

395.9

246.3

33.6

122.4

90.3

52.2

31.4

14.8

16.6

25.7

-4. 9

-4. 7

.2

97.3

67.8

29.5

Year

401.5

247.3

34.6

123.0

89.6

57.8

31.1

15.0

16.1

26.1

.6

1.2

- . 3

96.7

68.0

28.7

1954

I

391.4

245.6

32.6

122.1

90.9

53.5

31.5

15.1

16.5

24.9

-2. 9

-3. 0

.5

91.8

61.4

30.3

II

390.0

248.8

33.7

123.4

91.7

53.7

32.6

16.3

16.3

24.3

-3. 2

—3. 6

1.5

86.0

55.1

30.9

III

392.5

251.5

33.9

124.6

93.0

55.6

34.0

17.4

16.6

24.0

-2. 4

-3. 0

1.2

84.2

52.6

31.6

IV

400.8

255,9

35.4

126.4

94.1

59.3

35.5

18.6

16.9

23.1

.8

.2

3.0

82.5

50.7

31.8

Year

393.9

250.4

33.9

124.1

92.4

55.7

33.5

16.9

16.6

24.1

-1. 9

-2. 4

1.7

86.1

55.0

31.1

1955

I

413.9

261.7

39.7

126. 5

95.6

66.2

37.7

20.1

17.6

23.5

5.0

4.2

2.0

84.0

51.2

32.8

II

422.0

266.9

40.9

129.3

96.8

70.4

38.3

20.4

17.9

25.2

7.0

6.3

1.1

83.5

50.2

33.4

III

430.5

273.4

43.4

131.8

98.2

72.4

38.5

20.0

18.5

27.5

6.5

5.9

1.8

82.9

49.6

33.4

IV

434.7

275.4

41.8

134.1

99.5

73.9

38.0

19.3

18.7

28.2

7.7

7.2

1.4

84,0

50.4

33.6

Year

425.5

269.4

41.4

130.4

97.5

70.8

38.2

20.0

18.2

26.1

6.5

5.9

1.7

83.6

50.3

33 3

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26 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

Table 9.—Gross National Product, Seasonally Adjusted Quarterly Totals at Annual Rates, in Constant Dollars, 1947—58—Continued

[Billions of 1957 dollars]

Line

1

2

4

5

()

H

10

11

12

13

14

1

K

16

Gross national product _ --

Personal consumption expenditures

Durable goods - -- -- --

Nondurable goods - - -

Services * . - --

Gross private domestic investment

New construction - __ _

Residential nonfarm

Other -

Producers' d urable equipment

Change in business inventories—total

Nonfarm only -

Net exports of goods and services

Government purchases of goods and service*.

Federal - -

State and local - -

1956

I

433.2

276.4

40.6

135.2

100.6

73.4

37.4

18.5

18.9

28.3

7.7

7.7

1.0

82.3

48. 1

34.2

II

434.1

276.6

39.3

135. 6

101.7

71.7

36.9

18.0

18.9

28.5

6.3

6.6

3.3

82.6

48.0

34.5

III

435.2

276.5

38. 5

134.9

103.1

71.5

36.9

17.7

19.1

28.9

5.8

5.7

3.7

83.5

48.9

34.6

IV

440.9

280.5

40.2

136.0

104.3

70.9

36.9

17.9

19.0

29.1

4.9

4.7

4.9

84.6

49.3

35.2

Year

436.0

277.5

39. b

135.4

102.4

71.8

37.0

18.0

19.0

28.7

6.2

6.2

3.4

83.2

48.6

34.7

I

441.6

282.5

40.5

136.8

105. 2

67.1

36 9

17.3

19.6

29.1

1.1

.6

5.7

86.3

50.2

36.1

II

442.8

283.5

39.5

137.6

106.4

67.0

36.0

16.5

19.5

28.2

2.8

1.9

6.2

86.1

50.2

35.9

1957

III

442.4

287.2

40.3

139.8

107. 1

65.9

36.3

16.8

19.5

27.8

1.8

.9

4.7

84.6

48.9

35.7

IV

434.1

284.6

39.4

137.7

107. 5

61.1

36.7

17.5

19.2

26.3

-1. 9

-2. 7

3.0

85.4

48.3

37.1

Year

440.3

284.4

39 9

138.0

106. 5

65.3

36.5

17.0

19.5

27.9

1.0

.2

4.9

85.7

49.4

36.3

1958

I

418.0

280.7

36 3

136.8

107.7

49.4

35. 7

17.0

18.7

22.4

-8. 7

-8. 8

1.1

86.7

48.9

37.8

II

4i9.0

281.5

35 5

137. 7

108.3

48.5

34 2

16.2

18.0

21.8

-7. 5

-7. 6

1.1

87.8

49.9

38.0

III

428.3

284.7

35 8

139 9

109 0

52.7

35 7

17 8

17.9

21.8

-4. 8

-5. 2

1.3

89.6

50.9

38.7

IV Year

moved upward again; and State and local

government outlays expanded further. Inventory liquidation was a little lower than

in the first quarter, and thus contributed to

the improvement in aggregate demand on a

net basis.

By the third quarter, economic recovery

was clearly under way. Reflecting substantial increases in consumption, housing, and

government buying, and a pronounced

slackening in the rate of inventory liquidation, gross national product registered a

sharp advance. Fixed investment outlay

was the only major demand that did not

contribute to the general rise. But, as already noted, the decline had apparently

leveled out and firming tendencies were in

evidence.

The 1957-58 turnabout of GNP was the

quickest on record in the postwar period.

It contrasted with the pattern in 1954,

when output remained low for three

quarters, and with that in 1949, when output hesitated for two quarters before resuming a steady upward course.

At an annual rate of $439 billion in the

third 1958 quarter, the value of gross national product was $13 billion above the

recession low and had recovered twothirds of the fall from the prior peak

reached a year earlier. Prices having risen

over this period, the increase in real output

had canceled about two-fifths of the previous loss.

Personal income, which at its low point

in February 1958 was only 2 percent under

the August 1957 high, was back up to the

peak by June and continued its strong advance through the summer.

CONCLUDING COMMENT

As this is written in October 1958, we

have a substantial but as yet incomplete recovery following a sharp business decline.

Although personal income has moved

up to a record rate, corporate profits

are still below their earlier high; employment in nonagricultural industries has recovered about one-fourth of its earlier loss,

and unemployment though improving remains a problem in many areas; automobile sales and output are low and a test of

the recovery in demand awaits the availability of the 1959 models, which are only

now beginning to go on display. So the

tracing of the upward phase of the current

business cycle is still a matter for the future.

Again we have had, through the national income accounts, prompt measures

of retrogression and progress which have

given business and Government a comprehensive picture upon which analyses and

actions could be based. This has contributed greatly to knowledge and understanding, which are essential guides to policies

of both action and restraint in the economic sphere.

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THE ECONOMY VIEWED THROUGH THE

NATIONAL INCOME ACCOUNTS

2. Expansion of

Regional Markets

The growth and structure of regional

markets in the United States during the

postwar period are traced in this chapter

through OBE's estimates of personal income by States.

Since these estimates cover the current

income received by individuals from all

sources, they constitute a major purchasing power guide which yields directly a

geographic breakdown of the broad consumer market. Although personal income

is measured before deduction of income

and other direct personal taxes, these can

be excluded in order to derive State estimates of disposable personal income, a

somewhat more precise market measure.

As a complete measure of the income

flow to individuals, personal income also

qualifies as an indicator of business activity and economic growth among regions,

and provides a particularly valuable framework for relating regional developments to

those on a national scale. The usefulness

of the State income figures as a tool of

economic analysis is enhanced by reason

of the significant breakdowns which accompany the overall totals. The rich array

of underlying detail—in terms of both industrial sources and types of income—

facilitates understanding of the individual

regional economies.

The State income measures, then, portray the dimensions of the regional markets

and, more generally, afford a significant

and comprehensive basis for viewing the

regional economies. They furnish an economic record for the States that is both

current and long term, both summary and

detailed.

The ensuing review of these voluminous

statistics focuses on highlights—on significant aspects of the current geographic income distribution and of the changes which

have occurred in the postwar period..The

available historical record extending back

to the late 1920's is drawn upon for perspective, as a background against which to

evaluate the postwar developments.

More specifically, the State income data

are first utilized to delineate present-day

regional differences in market size and

466759 0—59 3

economic structure. Following these brief

profiles, the overall postwar growth of the

regions is summarized by use of aggregate

and per capita income data in real as well

as in current-dollar terms. Finally, in an

analysis which focuses to a large extent on

the industrial sources of income, the shifts

evidenced by these summary measures are

evaluated for the light they shed on basic

economic developments among the regions

over the postwar span.

ECONOMIC

PROFILES

The personal income data for 1957 reveal directly key characteristics of the current regional economies and of the geographic markets for goods and services. The

requisite information by States covers both

total and per capita personal income, disposable personal income, and breakdowns

of income and earnings by industrial

sources.

FEATURES OF INCOME DISTRIBUTION

Included in Tables 1 and 2 are columns

showing for 1957 the percentage of national personal income received by each

State and region and the percentage relationship between its per capita income and

that of the Nation; also shown are the dollar figures on which the percentages are

based. These data bring out two broad features of the geographic distribution of income in this country.

First, they are a forceful reminder that,

irrespective of past and current differentials in relative income movements, the individual States and regions vary substantially in volume of total income. Of the

1957 personal income total of $345 billion,

more than two-fifths was accounted for by

five States: New York ($41 billion), California ($35 billion), Illinois ($24 billion),

Pennsylvania ($23 billion), and Ohio ($21

billion). By contrast, five States each received $1 billion or less in personal income—Vermont, Wyoming, Nevada,

North Dakota, and Idaho.

Also to be noted is that two regions—

the Mideast and Great Lakes—account for

almost one-half of all personal income;

that Massachusetts, Texas, and California

dominate their respective regional income

Growth in Income

and Population

Fig. 16

27

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28 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

totals; and that the five Rocky Mountain

States, though embracing a huge land area,

receive only a little over 2 percent of the

Nation's income.

Second, although the geographic distribution of income reflects mainly the location of population, differentials in per

capita income are wide. By regions, per

capita income ranges from almost one-fifth

above the national average in the Far West

and Mideast to nearly one-third below it

in the Southeast. On a State basis, of course,

the spread in average income levels is much

greater.

As compared with the United States figure of $2,027, per capita personal income

in 1957 varied from $2,821 in Connecticut

to $958 in Mississippi. In Connecticut and

others in the top rank—Delaware, New

York, California, District of Columbia, and

New Jersey—average incomes ranged from

one-fourth to two-fifths above the national

average. In 10 of the 12 Southeastern

States, as well as in North Dakota and

South Dakota, per capita incomes in 1957

were from one-fourth to one-half below

the countrywide average.

DISPOSABLE PERSONAL INCOME

The best available measure of the dimensions of geographic markets for consumer

goods and services is furnished by disposable personal income, which defines the individual income flow on an after-tax basis.

Estimates by States and regions are given

in table 11-10 of the Statistical Section for

selected years of the period from 1929 to

1955. While the latter year is the most recent for which tabulations of Federal individual income taxes are presently available

from the Internal Revenue Service on a

State-of-residence basis, the regional estimates of disposable income have been extended here to 1957 by means of the incomplete information at hand.

As shown in the accompanying tabular

comparison, the relative distribution of

disposable income by regions in 1957 was

quite similar to that of total income. Such

Personal and Disposable Income, 1957

United States

New England.,

Mideast

Great Lakes . .

Plains

Southeast

Southwest

Rocky Mountain

Far West

Billions of dollars

Personal

income

345.3

22.7

87.9

77.6

27.9

53 1

23.4

7.7

45.0

Disposable

income

302.9

19.7

76.2

67.8

24.9

47 8

20.9

6.8

38.8

Percent distribution

Personal

income

100.00

6.57

25.46

22.46

8.08

15 38

6.79

2.24

13.02

Disposable

income

100.00

6.51

25.11

22.38

8.23

15 78

6.91

2.26

12.82

similarity, which also prevailed in marked

degree on a State basis, was even closer for

1929 and 1947—pointing to the fact that

the relative shifts among regions in disposable income were about the same as those

in the before-tax measure.

The relatively close correspondence between the distributions of personal income

and disposable income is attributable to

the moderate "weight" of personal taxes

in this context. In 1957, taxes absorbed

12/2 percent of personal income in the

United States. Even significant variations

around this nationwide average could—

and did—result in a regional distribution

of income after taxes that in relative terms

differed only moderately from the beforetax distribution.

The foregoing finding of "similarity" between disposable income and personal income is based on a comparison of relationships shown for these two measures between

each area and the United States. For any

particular area, however, the percentage

changes in personal income and disposable

income over the long run differ markedly,

just as they do for the country as a whole;

differences in these changes over the postwar decade, however, are only moderate,

by reason of the fact—noted in Chapter

1—that the national ratio of personal taxes

to personal income did not vary substantially in this period.

BROAD INDUSTRIAL SOURCES

Important to an understanding of the

current regional economies is a knowledge

of their industrial structure. Basic information along this line is to be found in a

breakdown of personal income into the

amounts received by residents of each State

from farming, government, and private

nonfarm industry.

The most striking fact revealed by Table

4 is the wide variation in the percentage

of income received from farming. As compared with 4 percent nationally, regional

proportions range from 1 percent in the

Mideast to 12 percent in the Plains, with

the percentage in the Rocky Mountain

States and the two southern regions varying from 6 to 9 percent. By States, of

course, variations are more extreme—from

1 percent or less in several of the New England and Mideastern States to 20-30 percent in South Dakota, North Dakota,

Iowa, and Nebraska.

Government income disbursements in

1957 formed about one-sixth of all personal income in the United States. Of

the $58 billion disbursed to individuals,

about two-fifths—$23 billion—came from

State and local governments. In 37 States,

the latter element accounted for a fairly

uniform proportion (6-8 percent) of total

income. Therefore, Federal Government

payments introduce the main geographic

differentials in the proportion of personal

income received from government. These,

in turn, stem primarily from the location

of national defense installations, as reflected in payroll disbursements to military

personnel on duty and to civilian employees

of the defense agencies. The remainder of

Federal Government disbursements to residents of the States is distributed throughout

the country rather uniformly in relation

to total income.

Government disbursements bulk largest

in the four regions of the South and West,

where they account directly for about onefifth of total income. The proportion is

smallest—one-eighth—in the Great Lakes

States.

Nationally, 79 percent of personal income in 1957 was disbursed by private

nonfarm industries. The considerable variation around this average—from 88 percent in Connecticut to 51 percent in South

Dakota—reflects chiefly the widely differing importance of farming as a source of

personal income throughout the country.

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EXPANSION OF REGIONAL MARKETS 29

CIVILIAN INCOME BY INDUSTRIES

The breakdown of personal income just

reviewed—farm, government, and private

nonfarm—is as far as one can go in classifying total income in each State according

to industrial source. The private nonfarm

income totals by States cannot be subdivided by industry mainly because of the

lack of information on industrial sources

of dividends and interest.

It is possible, however, to allocate a

large portion of total income—four-fifths

on a national basis—by State and industry.

This portion—termed "civilian income received by persons for participation in current production"—covers, except for

military disbursements, the combined total

of wages and salaries, other labor income,

and proprietors' income. These three flows

can be characterized very largely as the

earnings received by individuals, both employees and self-employed, for their efforts

in current production. Accordingly, Table

5, which shows individuals' earnings in

each industry as a percent of total civilian

earnings in 1957, affords a comprehensive

and meaningful picture of the industrial

structures of the State and regional

economies.

The major fact revealed by examination

of this table is that farming, mining, and

manufacturing account for the bulk of geographic variations in the industrial composition of total civilian earnings. This fact, in

turn, encompasses two others: (a) Despite

their widely differing importance individually, these 3 industries together account for

roughly similar proportions of total civilian

earnings in most areas; and (b) the proportions of aggregate civilian income by

States and regions derived from the other

industrial divisions enumerated in Table

5—singly as well as in combination—are,

on the whole, fairly uniform.

In amplification of this broad characterization of the industrial source patterns

of civilian earnings by geographic areas, the

condensation given below of Table 5 may

prove helpful. It shows for the United

States and each of the eight regions the percentage of total civilian earnings in 1957

received from four groups of industries:

Commodity-producing, distributive, service, and government. In addition to farming, mining, and manufacturing, the commodity-producing group includes contract

construction and "other" (the latter comprised largely of agricultural services, forestry, and fisheries). The distributive

industries consist of wholesale and retail

trade, transportation, and communications

and public utilities. The service category

comprises the services industry proper and

finance, insurance, and real estate. Finally,

the "Government" column in the accompanying tabulation combines the data

shown in Table 5 for Federal civilian and

State and local.

As evidenced by the breakdown of individuals' civilian earnings in 1957, the

industrial structures of the various States

and regions exhibit general correspondence

in the relative importance of commodity

production and distributive, service, and

government activities. The extent of geographic uniformity in the relative importance of the commodity-producing group

of industries (see Figure 20) is fairly rough,

but is none the less significant. It stands

in sharp contrast to the widely varying

emphasis placed upon farming, mining,

and manufacturing within the commodityproducing segment, as depicted in Table

5. And within each of these three major

industries there is further, detailed specialization in production—a fact so widely

Table 1.—Personal Income and Population

1. Computed from data in table II-8, Statistical Section.

2. Based on data from U. S. Department of Commerce, Bureau of the Census.

State and region

Continental United States

New England

Maine

New Hampshire - -

Vermont

Massachusetts

Rhode Island

Connecticut ..

Mideas t ___ _

New York

New Jersey _ . . .

Pennsylvania

Delaware

Maryland _________ _

District of Columbia

Great Lakes

Michigan _ _____

Ohio

Indiana. _ _

Illinois

Wisconsin

Plains

Minnesota-. __

Iowa

Missouri

North Dakota. _

South Dakota

Nebraska

Kansas

Southeast __ _ __

Virginia _ -

West Virginia. __ _

Kentucky

Tennessee .. . _ _ _ .. .

North Carolina

South Carolina

Georgia. _ _ _ _ _ - _

FloridaAlabama. .. .

Mississippi

Louisiana _

Arkansas- __

Southwest _ _

Oklahoma

Texas

New Mexico

Arizona. _ __

Rocky Mountain._ _

Montana

Idaho

Wyoming

Colorado

Utah

Far West___ _ _

Washington

Oregon

Nevada. _ _ _ _ .

California

Territory of Hawaii

Total income

Amount

(milliens)

1957

345,272

22,687

1,568

1,065

626

11,361

1,715

6,352

87, 901

40,954

14,089

23,327

1,200

6,242

2,089

77,559

16, 706

20,748

9,110

23,579

7,416

27,913

6,145

5,056

8,256

924

1,075

2,640

3,817

53,088

6,302

3,071

4,172

4,791

5,924

2,796

5,407

7,522

4,171

2,093

4,804

2,035

23,438

3 687

16, 364

1,399

1,988

7,731

1 263

1,043

644

3,339

1,442

44,955

5,792

3,385

647

35 131

1,098

Percent of continental

United States 1

1929

100.00

8.32

.56

.38

.26

4.51

.69

1.92

32.06

16.47

4.33

8.79

.28

1.47

.72

23.61

4.44

6.04

2.30

8.50

2.33

8.87

1.80

1.66

2.66

.30

.34

.95

1.16

11.67

1.23

.93

1.19

1.15

1.22

.55

1.18

.88

1 00

.67

1.01

.66

4.97

1 26

3.21

.20

.30

1.88

36

.26

.18

.75

.33

8.62

1.36

.75

.09

6 42

1947

100.00

6.89

.52

.32

.21

3.48

.60

1.76

26.49

12.69

3.84

7.28

.26

1.61

.81

22.47

4.67

5.75

2.61

7.22

2.22

8.85

1.86

1.58

2.49

.44

.39

.83

1.26

15.03

1.73

1.02

1.26

1.47

1.78

.82

1.53

1.54

1 24

.74

1.20

.70

6.25

1 14

4.41

.30

.40

2.23

41

.35

.20

.87

.40

11.79

1.76

1.09

. 14

8 80

. oo

1950

100.00

6.73

.48

.31

.20

3.45

.57

1.72

26.36

12.43

3.86

7.30

.31

1.67

.79

22.51

4.79

5.72

2.66

7.10

2.24

8.80

1.86

1.68

2.53

.35

.35

.86

1. 17

15.17

1.78

.98

1.26

1.46

1.82

.83

1.56

1.61

1 18

.71

1.30

.68

6.50

1 11

4.61

.35

.43

2.23

42

.34

.21

.86

.40

11.70

1.77

1.09

.14

8 70

.31

1957

100.00

6.57

.45

.31

.18

3.29

.50

1.84

25.46

11.86

4.07

6.76

.35

1.81

.61

22.46

4.84

6.01

2.64

6.82

2.15

8.08

1.78

1.46

2.39

.27

.31

.76

1.11

15.38

1.82

.89

1.21

1.39

1.72

.81

1.57

2.17

1 21

.61

1.39

.59

6.79

1 07

4.73

.41

.58

2.24

37

.30

.19

.96

.42

13.02

1.68

.98

.19

10 17

.32

Percent change'

1929 to

1957

303

218

227

231

178

194

188

287

220

190

279

210

400

395

240

283

339

301

362

224

271

268

299

256

263

265

273

226

282

431

498

287

309

388

466

495

433

899

387

267

455

261

451

242

495

718

683

379

305

364

326

420

408

508

397

423

719

539

1947 to

1957

83

74

60

73

61

73

52

91

75

71

94

70

140

105

37

83

89

91

85

73

76

67

75

69

76

11

45

68

60

87

92

59

75

73

76

80

87

159

78

50

111

54

98

70

96

143

165

84

64

60

69

102

93

102

74

63

151

111

52

Population

Number

(thousands)

1957

170,333

9,871

943

572

376

4,866

862

2,252

36,722

15,888

5,627

11,043

438

2,895

831

35,035

7,803

9,200

4,533

9,637

3,862

15,309

3,321

2,799

4,255

644

702

1,452

2,136

37,193

3,797

1,976

3,040

3,463

4,498

2,370

3,779

4,098

3,151

2,185

3,068

1,768

13,381

2,277

9,138

830

1,136

4,146

666

640

316

1,673

851

18,680

2,722

1,769

267

13, 922

603

Percent change

 2

1929 to

1957

40

21

18

22

5

15

26

41

30

31

41

14

86

79

72

39

63

39

41

27

32

15

29

14

17

- 4

2

6

14

37

57

15

17

33

44

36

30

184

19

9

47

- 5

49

4.

59

98

164

53

27

43

42

66

68

130

75

87

197

152

1947 to

1957

19

9

10

12

6

6

10

14

14

14

22

8

43

28

- 5

20

28

19

20

15

19

14

19

12

11

11

17

15

15

16

16

5

8

9

19

19

16

61

7

4

19

- 4

24

7

24

43

74

30

26

23

23

35

34

37

22

30

79

40

16

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30 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

known as not to require statistical confirmation. Notable examples include the geographic concentration of automobile, textile, and tobacco manufactures; the limited

areas of petroleum and gas mining; and

the production of citrus fruits, beef cattle,

cotton, tobacco, and wheat in sections determined almost entirely by soil and

weather conditions.

ONE NATIONAL ECONOMY

It is believed that these two broad features—commodity-production specialization on the one hand, and generally similar

importance of distributive and service

(including government) pursuits on the

other—provide a significant view of the

geographic economies of the United States.

They depict these economies as highly

interdependent, linked to each other by a

complex network of commodity and service flows. Further, they support a general

view of the United States as a single "national economy" comprised of complePercent of Total Civilian Earnings, 1957

United States.

New England-.

Mideast

Great Lakes

Plains

Southeast.- - .

Southwest

Rocky Mountain,...

Far West

Commodityproducing

industries

45

48

42

53

45

43

41

40

40

Distributive

industries

28

24

28

25

30

28

30

31

28

Service

industries

16

18

19

14

15

16

17

15

19

Government

11

10

11

g

10

13

12

14

13

mentary, interrelated regional economies—

rather than as a "weighted average" of

separate regional economies having a high

degree of independence and passing

through individually distinct stages of economic structure (as delineated here by the

4-way grouping of industries).

Bearing significantly on this point, it is

to be noted that the profound economic

changes of the past quarter of a century—

featuring a vast growth in real national

output and shifts in its composition—have

had relatively little impact on geographic

differences in the broad industrial source

patterns of income. In 1929, as well as in

1957, both specialized commodity-production and distributive and service activities

were of roughly similar importance

throughout the country.

These features of regional income patterns in the United States—specialized

commodity production and similar emphasis upon distribution and service—are

attributable to numerous factors. Among

them are the location and character of

natural resources, mobility of labor and

capital funds, common institutions and

laws, and access to broader regional and

national markets made possible by the

absence of trade barriers and by highly

developed systems of transportation and

'communication.

The close economic interlink of geographic areas in this country is indicated

also by an interesting tally of year-to-year

changes in personal income by States since

1929. This shows that in every year in

which the change in personal income

(either total or per capita) on a national

basis has been appreciable the direction

of change has been the same in all or a

very large majority of the individual

States. It would seem to be clearly indicated

that the major stimulus of economic forces

in the United States is national rather than

geographic in scope and origin.

This characterization of the relation between the national and regional economies

of the United States is not, of course, at

variance with two well-known facts: That

the regions can, and do, exhibit differing

overall rates of economic growth, as our

income measures clearly reveal; and that

the national economy can, and does, derive strength from the effective utilization

and development of human and material

resources in the several regions. For if the

basic stimulus, or climate, of economic

forces in the United States is national in

scope, economic growth in the country as

a whole must perforce reflect the character

of regional responses to it.

SUMMARY OF

GROWTH

Over the period from 1947 to 1957,

personal income in real terms showed an

expansion of nearly one-half on a national

basis—about the same as that which occurred in the physical volume of gross national product. Translated to a per capita

basis, the income rise over the decade

amounted to more than one-fifth.

Through the availability of specially

compiled price indexes, it is possible to

adjust the State income estimates for

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EXPANSION OF REGIONAL MARKETS 31

changes in consumer prices, and thus to

determine geographic differences in the

relative growth of real income.

RISE IN PURCHASING POWER

The largest relative advances in aggregate real income from 1947 to 1957—

almost three-fifths—were scored in the Far

West and Southwest, while growth in the

Southeast was only a little less. The record

for the Great Lakes and Rocky Mountain

regions was about the same as that for the

country as a whole. In the highly developed New England and Mideast areas,

the expansion in real income approximated two-fifths; in the Plains States, it

amounted to one-third. These comparative

advances in purchasing power, along with

the absolute volume of income in each region, are shown here in the text table.

Personal Income—Billions of 1957 Dollars

United States - ._

New England

Mideast

Great Lakes

Plains ... _

Southeast

Southwest

Rocky Mountains

Far West

1947

236.3

16.3

61.8

53.8

20.9

34.7

15.0

5.3

28.6

1957

345.3

22.7

87.9

77.6

27.9

53.1

23.4

7.7

45.0

Percent

increase,

1947-57

46

39

42

44

34

53

57

47

57

Accompanying the gains in total real income, and contributing to them, were

widely varying rates of population advance. (See Figure 16.) As compared with

a growth of about one-fifth for the country as a whole, the 1947-57 population increases by regions varied from nearly twofifths in the Far West and almost one-third

in the Rocky Mountain States to one-tenth

in New England. The pattern of regional

expansion in population differed significantly from that in total real income.

In real income per capita, an outstanding advance over the past decade was made

by the Southeast, as shown in Figure 17.

Gains in New England, the Mideast, and

Southwest also exceeded the national

average.

While differences in postwar economic

growth are thus apparent, of primary note

is the broad upsurge which characterized

all sections of the Nation. In 1957, real income was a record in every State and

region.

COMPARATIVE INCOME EXPANSION

Following this sketch of income changes

in real terms, consideration is now turned

to the regular current-dollar figures. These

are available, as noted, in considerable

component detail, and thus permit analysis of some of the principal factors underlying relative shifts in the regional distribution of income.

It should first be noted that the State

and regional increases in current-dollar income from 1947 to 1957 reflect the same

pattern of change observed in real income.

This generalization stems from the fact

that relative increases in consumer prices

appear to have been quite similar in

most broad regions of the country, and

that such similarity has held in marked degree among States.1

Given this fact, it follows that the ranking of the regions as to relative expansion

in current-dollar income was the same as

that noted above for real income. Relative

increases were thus largest in the Far West

and Southwest, where total income doubled from 1947 to 1957; and the rise recorded for the Plains States—two-thirds—

was least. (See Table 1.) In the Great

Lakes and Rocky Mountain States, income

expansion closely approximated the nationwide rate of a little over four-fifths.

The increase fell somewhat below that rate

in New England and the Mideast, and exceeded it in the Southeast.

On a State basis, there was some tendency for the 1947—57 increases in total income to be above average or below average

in conformity with the record of the region

in which a State is located. Within this

general pattern, the actual rates of increase

varied widely.

The largest relative advances in total income over the past decade occurred in

Florida, Arizona, New Mexico, Nevada,

and Delaware. While it must be kept in

mind that these States are in general

among the smaller ones in terms of income

volume and that growth proceeded from a

relatively low base, in each of them income

in 1957 was approximately 2J/2 times the

1947 dollar total. In the first four States

listed, above-average increases were general among major industries; in Delaware,

the impetus stemmed chiefly from manufacturing—more specifically, from the

State's large chemical industry—and from

a spurt in construction activity.

At the other end of the scale were North

Dakota, South Dakota, Arkansas, Mississippi, Rhode Island, and the District of

Columbia, where the advances from 1947

to 1957 ranged from one-tenth to one-half.

In the two Dakotas, Arkansas, and Mississippi, the rise in aggregate income was

dampened by a drop in farm income; activity in nonfarm industries in each of these

four States expanded at a pace approximating that for the Nation. In Rhode Island, the principal limiting factor was a

1. State and regional consumer price indexes used

in this report for deflating personal income in

selected years 1929-53 were prepared by Abner Hurwitz and' Carlyle P. Stallings of the U. S. Department of Labor, and published in "Interregional Differentials in Per Capita Real Income Change,"

Studies in Income and Wealth, Volume Twenty-one,

National Bureau of Economic Research, 1957. Hurwitz and Stallings extended the indexes to 1957 on

a regional basis for use in this volume.

sizable decline in textile manufacturing,

the State's largest industry.

In the case of the District of Columbia,

it should be noted that the figures are not

at all indicative of what happened in the

Washington Metropolitan Area as a whole.

The District comprises a city of limited

geographic size, and growth in the postwar

period has taken place in the Maryland

and Virginia suburbs, which have expanded greatly. The income of the Washington Metropolitan Area in 1957—at

$4/2 billion—was more than double that

received by residents of the District of

Columbia.

REGIONAL SHIFTS

BY INDUSTRY

Next in this review is an evaluation of

the State and regional income changes over

the postwar period. This will be carried out

through an analysis of underlying factors

as evidenced in the components of personal

income, principally those which record the

earnings of individuals on an industry

basis.

The endeavor will be to gauge the extent to which the measured changes in total

income from 1947 to 1957 reflect differences in basic growth tendencies among the

regions. This requires an allowance, at

least rough, for those temporary or special

factors which may have been present in

either or both of the terminal years 1947

and 1957, and thus may have served to

obscure developments of a more fundamental nature.

Experience with the State income data

has shown that the temporary or special

factors making for irregularity of movement in the geographic income flows stem

in large degree from two sources—farming

and government.

After a discussion of the geographic

changes in these income sources from 1947

to 1957, attention will be directed to the

pattern of postwar regional economic

growth indicated by the data on nonfarm

income and private nonfarm income. Because these data abstract from the direct

effects of the special elements reflected in

the agricultural and governmental income

flows, they tend to provide better measures

than total income of the more basic shortterm developments in the State and regional economies. It may also be added

that nonfarm measures of geographic income growth have an independent usefulness for market research.

FARM INCOME DECLINES

The economic development of the past

decade most clearly imprinted on the regional distribution of income was the strong

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32 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

decline in farm income from the abnormal

high attained in 1947.

The total income received by individuals

from farming amounted to $17 billion, or 9

percent of national personal income, in

1947, when farm prices were exceptionally

high and foreign demand was at a peak because of the disruption of production in

many parts of the world as a result of the

war. By 1957, farm income had receded to

$14 billion, or 4 percent of total income.

This decline, of course, was at a much

steeper rate than the historical one since

1929, when farming accounted for 8 ^ percent of personal income. The long-term

trend, it may be added, has been accompanied by a shift of population from farm

to city—to which the tremendous growth of

capital equipment in agriculture gave impetus—and over the past quarter-century

average incomes earned in farming have

more than kept pace with those in nonfarm

pursuits.

It is also to be noted that in the personal

income measure no allowance is made for

capital gains, whether realized or unrealized. These were large in both the war

and postwar periods, which witnessed a

great rise in the value of farm property.

In an evaluation of postwar alterations

in the regional income distribution, it is

of prime importance to take account of the

pronounced geographic effects of the divergence in movement between farm and

nonfarm incomes, the latter having shown

a comparatively steady growth.

Fig. 19

Per Capita Personal Income as Percent of

National Average by Regions

In most regions of the country, the 1947—

57 decline in farm income was of about

the same relative magnitude as in the

country as a whole, and its effect on total

income was generally proportionate to the

relative importance of agriculture in the

economies. By States, however, variations

in rates of change were also a significant

contributing factor. The percentages of

total income received from farming in the

various States and regions in 1957 and the

percent changes in farm income from 1947

to 1957 are recorded in Table 4.

One further note regarding farm income

is relevant. This concerns its considerable

volatility from year to year on a State

basis. Because agriculture is so specialized

geographically, weather conditions, price

fluctuations, and other factors that cause

variations in farm production have a larger

impact on income in specific areas than in

the country as a whole.

Accordingly, in the study of geographic

shifts in income from agriculture, an averaging of the data for two or three years

at each end of the period under review is

apt to yield more meaningful results than

comparision based on single years. By regions, much of the instability characterizing single years cancels in the intraregional

State variations. But on a State basis the

choice of periods for measurement may be

of critical importance.

An example, admittedly extreme, of the

instability of single-year data is afforded

by Iowa and Nebraska. For both States,

1947 was a drought year, in which corn

production was reduced sharply with a

consequent lowering of far m income,

whereas 1948 was a bumper year. If 1947

is used as a base for measuring the postwar

change in income from agriculture, Iowa

shows a gain of one-fourth by 1957, and

Nebraska one-eighth. On the other hand,

if 1948 is used as the base, farm income

drops nearly one-third in Iowa and oneseventh in Nebraska.

LARGER ROLE OF GOVERNMENT

As brought out in Chapter 1, the postwar

role of government in the economy has

been much larger than in prewar years,

primarily because of the expanded requirements of national defense and of social insurance, veterans', and related programs.

In 1929, income paid out to individuals by

government totaled $6 billion, or 7 percent

of personal income nationally. In 1957,

such disbursements came to $58 billion, or

17 percent of individual incomes. This

total, in turn, compared with $28 billion

for 1947.

Government income disbursements represent the total of all types of income

paid to individuals by Federal, State, and

local governmental agencies. They include

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EXPANSION OF REGIONAL MARKETS 33

wages and salaries, "other" labor income,

interest, and transfer payments. Only payments made directly to persons are included. The personal income arising from

government purchases from business is included in the private income flows.

After the immediate postwar adjustment, government disbursements to individuals were a generally expansionary

factor throughout the Nation in the upward sweep of economic activity. In every

region, they rose at a more rapid rate from

1947 to 1957 than the income disbursed to

persons from the private economy.

Income paid out by government increased at below-average rates in New

England and the Mideast, at an aboveaverage pace in the four southern and

western regions, and at roughly the national rate in the Great Lakes and Plains

States.

The above relationships between government and private income flows hold on

a decade basis for broad regions, but not

in terms of annual changes in individual

States. Here, the potential volatility of

governmental income disbursements becomes operative. The main factor making

for wide swings in them is the relocation of

military personnel and the associated

changes in civilian employment attendant

upon military installations, but variations

in unemployment benefits, disbursement of

veterans' bonuses, and other types of transfers also operated to this effect at various

times throughout the postwar period.

As shown in Table 4, differences among

the States in the 1947-57 percentage increase in government income disbursements were quite substantial—much wider

than in the case of the regional increases.

This variability, which centered chiefly in

Federal disbursements, had a significant

effect in some States on the relative

changes in total income over this period.

NONFARM DISTRIBUTIONS ALTERED

The best, and most direct, way of gauging the geographic effects of income

changes in farming and government is to

compare the relative movements in nonfarm income and private nonfarm income

with those in total income. Such a comparison can aid materially in interpreting

and evaluating the State and regional shifts

in total personal income.

Private nonfarm income is a valuable

analytical tool for evaluating short-run

changes in regional economic activity. As

already indicated, it is free of the direct

effects of numerous erratic elements such

as the vagaries of weather, sharp variations

in farm prices, and relocation of military

personnel. Elements of this type sometimes

mask income changes in the large private

nonfarm area of the economy—which pays

out four-fifths of all income to individuals—and render total income an inappropriate measure of basic economic growth.

Provided here is a regional summary,

drawn from Table 4, of the relative increases in total income, nonfarm income,

and private nonfarm income over the

1947-57 decade.

The major feature of the tabulation relates to the Plains States. In this—the most

agricultural—region, total income advanced least; nonfarm income, by contrast,

showed an increase matching the nationwide average. The dampening influence of

agriculture on total-income changes is evident also for the Rocky Mountain States,

Southwest, and Southeast, but less pronouncedly.

A corollary influence will be noted for

New England, the Mideast, and Great

Lakes States, the industrial heart of the

Nation, where only a small fraction of

total income is derived from farming. In

these areas, the downward "pull" which

Table 2.—Per Capita Personal Income

State and region

Continental United States. -

New England

Maine

New Hampshire

Vermont

Massachusetts

Rhode Island

Connecticut

Mideast

New York _

New Jersey

Pennsylvania

Delaware _ .. .

Maryland

District of Columbia_ _

Great Lakes _

Michigan

Ohio. .

Indiana

Illinois

Wisconsin

Plains

Minnesota

Iowa . _ .

Missouri

North Dakota

South Dakota.. -

Nebraska

Kansas

Southeast.-.

Virginia

West Virginia

Kentucky..

Tennessee

North Carolina

South Carolina

Georgia.

Florida . .

Alabama

Mississippi

Louisiana

Arkansas ,.

Southwest..

Oklahoma

Texas -

New Mexico

Arizona..

Rocky Mountain..

Montana

Idaho

Wyoming...

Colorado. _.. _

Utah.._.

Far West-..

Washington

Oregon .

Nevada

California

Territory of Iluwciii

Amount

(dollars)

1957

2,027

2,298

1.663

1,862

1,665

2,335

1,990

2,821

2,394

2,578

2,504

2, 112

2,740

2,156

2,514

2,214

2,141

2,255

2,010

2,447

1.920

1,823

1,850

1,806

1,940

1,435

1,531

1,818

1,787

1,427

1.660

1,554

1,372

1,383

1,317

1, 180

1 431

1,836

1,324

958

1,566

1, 151

1,752

1, 619

1,791

1, 686

1,750

1,865

1,896

1,630

2,038

1,996

1,694

2,407

2,128

1,914

2,423

2,523

1,821

Percent of continental United States

 l

1929

100

125

85

98

89

130

124

146

138

165

132

110

145

111

181

114

113

111

87

136

97

81

85

82

89

53

59

84

76

52

62

66

56

54

48

38

50

74

46

41

59

43

67

65

68

58

84

85

85

72

96

91

80

129

107

97

125

142

1947

100

109

87

92

84

109

109

129

118

130

119

102

124

103

133

111

110

107

99

124

98

95

95

90

93

110

94

94

98

67

76

78

65

67

68

59

67

87

60

50

67

55

84

77

86

75

87

101

111

95

113

102

90

124

114

115

132

128

105

1950

100

109

80

88

79

111

110

128

118

126

120

105

144

107

147

111

113

108

102

123

98

94

94

97

97

85

81

98

92

68

82

73

64

67

68

59

68

86

58

49

73

54

86

76

90

78

87

96

108

86

109

97

86

120

112

107

130

124

H

1957

100

113

82

92

82

115

98

139

118

127

124

104

135

106

124

100

106

111

99

121

95

90

91

89

96

71

76

90

88

70

82

77

68

68

65

58

71

91

65

47

57

86

80

88

83

86

92

94

80

101

98

84

119

105

94

120

124

90

Percent change

 {

1929 to

1957

188

162

177

170

166

156

128

174

146

122

169

173

169

177

97

176

170

189

228

156

182

219

209

213

209

283

267

208

234

288

282

236

251

267

294

337

309

252

309

236

277

277

270

257

275

314

196

213

219

224

201

213

203

165

184

180

176

154

1947 to

1957

54

60

45

54

52

63

39

67

54

50

59

57

68

60

44

52

47

60

54

50

48

47

47

52

59

- 1

24

46

39

62

66

51

61

58

47

51

62

61

67

45

78

60

59

60

59

71

52

41

30

30

37

49

44

47

42

26

40

50

S2

1. Computed from data in table II-9, Statistical Section.

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34 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

farm income exerted on the general income

stream in the 1947—57 period was comparatively slight.

In general, as brought out in the tabulation, regional shifts in private nonfarm

income over the past decade were similar

to those in nonfarm income. On a State

basis, the degree of similarity was less

Percent Increases in Income, 1947 to 1957

Total

United States 83

New England 74

Mideast 75

Great Lakes 83

Plains 67

Southeast 87

Southwest 98

Rocky Mountain..- - 84

Far West 102

Non- Private

farm nonfarm

93 90

77 73

78 75

90 88

94 92

104 100

124 123

114 113

111 109

marked as the relative movements in private nonfarm income and government

income disbursements were considerably

divergent—the latter being more erratic.

By reason of this fact, the data on postwar

changes in private nonfarm income recorded in Table 4 have a particular relevance to the analysis of income flows on a

State basis. It may also be added that the

value of this type of measure is enhanced

as the time period under review becomes

shorter, and the relative importance of

random factors greater.

An example of the value of the private

nonfarm data is afforded by Mississippi.

In that State, total income rose 50 percent

from 1947 to 1957, as compared with the

national figure of 83 percent. If the direct

effects of a drop of one-third in farm income are excluded, the relative growth in

Mississippi is seen to be much more favorable—an advance of 85 percent in nonfarm

income comparing with 93 percent for the

country as a whole. If the effects of a belowaverage increase in income from government are also removed, it would appear

that in private nonfarm income the State

did about as well as the Nation—88 percent

as compared with 90 percent.

Because in the year 1947 Mississippi had

an exceptionally high farm income and an

unusual concentration of military personnel, it is believed that the comparison

based on private nonfarm income, which

abstracts from these nonrecurrent elements,

gives the truest picture of the basic tendency in the Mississippi income flow relative

to that of the Nation over the past decade.

Sources of Private Nonfarm

Income

This review of the postwar expansion of

regional markets turns now to a tracing of

the shifts in private nonfarm income to

their industrial source. While this has the

main purpose of shedding light on the factors underlying such shifts, it should also

be noted that information on developments

in broad industrial divisions of the economy has an independent utility for regional

economic and market research.

This examination is based on Table 3,

containing for the individual States and

regions percentage increases by major industrial divisions in the income received

by individuals from private nonfarm

sources for their participation in current

production. For each of the several industries shown in the table, this measure covers wages and salaries, other labor income,

and proprietors' income.

The main finding which emerges is a

highly significant one—that the geographic.

shifts in individuals' earnings by industry

fall generally into the same pattern as total

private nonfarm income. That is to say,

regional changes in private nonfarm income in the postwar period did not represent the residual effect of a netting out of

diverse economic forces. Rather, the summary changes stemmed from industrial developments that are pervasive throughout

the regional economies.

In New England and the Mideast, earnings of individuals in all major private

nonfarm industries rose at less-than-average rates. In the two southern and two

western regions, nearly every industry

moved up at a better-than-average pace. In

the Great Lakes and Plains States, where

growth approximated the national rate,

expansion in most individual industries

also came close to the countrywide average.

IMPACT OF MANUFACTURING

The manufacturing industry is of obvious and basic importance in conditioning

changes in the regional distribution of

income.

The expansionary impact of manufacturing on the regional economies was

greatest in the Far West, Southwest, and

Rocky Mountain States. In each of these

regions, individuals' factory earnings rose

much faster than income received from

other private nonfarm industries.

The effect of manufacturing was sizable

also in New England, which derives a high

proportion of its income from this source.

There, the less-than-average growth of the

industry was a major influence in the overall record. Most other private nonfarm industries in the States of this area experienced postwar growth rates closer to the

national average.

In the Mideast, Great Lakes States, and

Southeast, the role of manufactures in

shaping postwar economic growth was in

proportion to the importance of the industry in the regional economy, since in each

of these areas relative changes in factory

earnings were roughly in line with the experience of other private nonfarm industries. In the Mideast, the lag in earnings

from manufacturing relative to the Nation

was of about the same proportion as that

in other major industries. In the Southeast, manufacturing activity rose at aboveaverage rates, but no more so than did

earnings from other industries generally.

In similar fashion, expansion in the Great

Lakes States in manufacturing as well as

most other industries was fairly close to the

national rate.

Among States, there was strong conformity to the regional pattern. Every New

England and Mideastern State with the

exception of Delaware and Maryland experienced less-than-average increases in

earnings from manufacturing over the

1947-57 period. Of the 25 Southern and

Western States, 20 bettered the national

rate of increase, and in 3 of the remaining

5 the difference was minor.

In relative terms, the outstanding gain

on a State basis was scored by Arizona,

where income from manufacturing in 1957

was 5 times its 1947 volume. As a proportion of total private nonfarm income,

manufacturing in this State moved from

8 percent in 1947 to 15 percent in 1957—

Fig. 20

Importance of Commodity

Producing Industries

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EXPANSION OF REGIONAL MARKETS 35

the latter still far short of the comparable

national figure of 32 percent.

Other top-ranking gains in manufacturing were registered by California, Texas,

Florida, and Kansas. In each, individual

incomes from this industry in 1957 were

nearly 3 times as large as a decade earlier.

In Arizona, California, Texas, and Florida, nearly all industries shared in the rapid

growth; in Kansas, it centered primarily in

aircraft production.

California's strong advance in manufacturing from 1947 to 1957, it may be

noted, was derived in large degree from

the transportation equipment, electrical

machinery, and fabricated metals industries. These three types of manufactures,

which bulk large in the State's industrial

structure, were among the top growth industries of the postwar period throughout

the Nation generally, and their relative expansion in California was substantially

above average.

Regional shifts in manufacturing over

the postwar years, it may be observed,

were in line with those over the longer period back to 1929. For that period also,

New England and the Mideast—while experiencing large growth in absolute

terms—accounted for lower shares of manufacturing income, while the Southeast,

Southwest, and Far West each obtained a

larger share. The experience of the heavily

industrialized Great Lakes States was "average" over the past three decades as well

as in the postwar period alone.

Two types of shifts in the geographic

distribution of manufacturing from 1947

to 1957 are evident. The first relates to a

shift in factory production from one established area to another. Examples of this

type include the movement of textiles from

the northeastern sections of the country to

the Southeast; the westward trend of lumber manufactures from the Southeast to

Washington, Oregon, Montana, and

Idaho; and the further concentration of tobacco manufactures in North Carolina and

Virginia, together with the relative drift

away from Pennsylvania.

The second type of change in manufacturing involves the spread of activity from

old established sections to newer and comparatively less developed areas. Probably

the most dramatic relates to nonautomotive

transportation equipment—to its increased

relative importance in Missouri, Kansas,

Georgia, Texas, Washington, and California and to its relative decline in the

Mideast, particularly New Jersey and

Pennsylvania, and in several States of the

Great Lakes. In paper production, the

Southeast increased its share appreciably

in the postwar period, while in chemicals

manufacturing, Louisiana, Florida, and

Texas experienced appreciably better-thanaverage growth.

TRADE-SERVICE PATTERN CONFORMS

After manufacturing, wholesale and retail trade is the largest industrial source of

earnings for the Nation's employed labor

force. Ranking next are the service industries. These embrace a wide variety of

establishments and activities—such as

medical, legal, engineering, and other professional services; amusements and recreation, including motion pictures; various

types of services to business; personal services; domestic services; hotels; and charitable, welfare, and relief organizations.

In general, income from trade and the

services exhibited a regional pattern of

relative shifts from 1947 to 1957 much like

that in private nonfarm income. For both

groups of industries, there were declines in

the percentage of the national total received in New England and the Mideast;

little change in the share of the Great

Lakes; a moderate reduction in the proportion received in the Plains States; and

increased shares to the Southeast, Southwest, and Rocky Mountain States.

The sole departure from pattern was the

fractional decline in the share of income

from trade and service accounted for by the

Far West. This contrasted with the region's

general record of substantial relative gain.

Examination of the course of change within

the decade indicates that the moderate lag

of the Far West in the expansion of trade

and service activities was a product of developments in the early postwar years.

From 1950 to 1957, expansion in the region

considerably outpaced that in the country

as a whole.

Also noteworthy was the below-average

postwar rise of the Plains States in income

from trade. Here, the region's comparatively less favorable experience would appear to reflect the indirect consequences of

the drop in income from farming, the region's principal industry.

OTHER GROUPS GENERALLY IN LINE

To this point, the discussion of industrial

income sources has covered farming, government, manufacturing, trade, and services. Changes in earnings in five other industries over the postwar decade are shown

in Table 3. These include mining, contract

construction, finance, transportation, and

communications and public utilities.

The picture which emerges upon study of

the data for these industries is fairly uniform, and similar in general outline to that

observed for private nonfarm industry as a

whole. It includes larger-than-average advances in the Southeast, Southwest, Rocky

Mountain States, and Far West; belowaverage advances in New England and the

Mideast; and a mixed record for the Great

Lakes and Plains States, with changes in

the separate industries only moderately

different from the national average and

tending to offset.

It is to be noted, however, that the postwar growth of the contract construction industry, as measured in terms of the 1947

and 1957 data, showed irregular variation

by regions, with notable deviations from the

general pattern. But this industry is subject

to wide fluctuations in activity, particularly

on a geographic basis, and comparative regional changes based on single-year reference points are apt to lack sufficient

stability to be meaningful. When the regional postwar changes in this industry are

studied more broadly—by looking at the

general course of developments throughout

the whole period—it becomes evident that

in construction activity also there was basic

consistency with the broad trend of developments.

A marked degree of uniformity between

changes in total private nonfarm income

and in the volume of individuals' earnings

in the various industry divisions prevailed

on a State as well as regional basis. The

underlying State data should be examined,

however, for the many specific features

which this generalization cannot reveal.

Such data include not only those given here

in Tables 3 and 4, but also the detailed

tabular materials on earnings by industry

contained in our basic report, "Personal Income By States," as updated in the latest

August issue of the SURVEY OF CURRENT

BUSINESS.

It may be found, for instance, that in

West Virginia and Kentucky payrolls in

coal mining in 1957 were no higher than

in 1947—because of which fact the overall advance in individuals' earnings from

mining in the Southeast was of less-thanaverage proportion. By way of further

example, the more detailed statistics on

mining also reveal such contrary developments as the outstanding postwar expansion of crude petroleum and natural gas in

Texas and Louisiana; the sizable growth

of metal mining in Montana and Utah;

and the increase in both of these types of

mining in Colorado.

Longer-Run Perspective

While the main focus of this chapter is

on regional economic growth in the postwar period, perspective can be gained by

considering this growth against the background of long-term developments. An

observed income change in an area over

the relatively short span from 1947 to 1957

will be accorded greater trend significance

if it is found to fit in with the record of

the past, or if deviations from that record

can be explained on the basis of temporary factors.

The key data for judging the extent to

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36 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

which regional income changes in the post- obtained by computing the percent increase

war period were in fundamental accord or decrease from 1929 or 1947 to 1957 in

with the long run are contained in the ac- the percentage of the Nation's income recompanying tabulation. The figures pro- ceived by each region.

vided here are a simple and convenient As pointed out earlier and emphasized

measure of regional income shifts—of the below, the regions differ widely in absolute

change in income for each region relative volume of income. This is a fact which, parto that of the United States. They were ticularly from a marketing standpoint,

Table 3.—Postwar Changes in Private Nonfarm Earnings1

New England . _ _. _

Mideast

Great Lakes

Plains

Southeast

Southwest - ..

Rocky Mountain ._ _

Far West

Percent change ir

shares

1929 to 1957

Total

- 2 1

- 2 1

- 5

- 9

+32

+37

+ 19

+51

Private

nonfarm

- 2 3

"-I

- 2

+41

+47

+21

+48

l income

1947 to

1957

Private

nonfarm

t)

Q

- 1

+ 1

+5

+ 17

+12

+ 10

State and region

Continental United States

New England

Maine

New Hampshire

Vermont

Massachusetts ... -

Rhode Island

Connecticut

Mideast

New York

New Jersey

Pennsylvania

Delaware

Maryland

District of Columbia

Great Lakes

Michigan

Ohio

Indian a

Illinois - .. .

Wisconsin

Plains

Minnesota

Iowa

Missouri

North Dakota

South Dakota - .. .

Nebraska

Kansas . _ _- .

Southeast

Virginia

West Virginia. .

Kentucky

Tennessee

North Carolina

South Carolina

Georgia .

Florida

Alabama - -

Mississippi

Louisiana

Arkansas

Southwest

OklahomaTexas

New Mexico

Arizona -

Rocky Mountain

Montana - . .

Idaho

Wyoming

Colorado

Utah

Far West

Washington _ . . . . .

Oregon

Nevada

California

Territory of Hawaii

Percent changes in individuals' earnings in private nonfarm industries

regions, 1947 to 1957

Private

nonfarm

ndustries

88

70

59

70

62

65

40

91

73

67

91

69

135

99

37

88

94

94

93

77

86

90

94

81

86

99

83

81

108

98

97

60

91

88

88

89

96

164

90

85

124

75

123

99

122

171

173

109

97

81

75

131

111

105

80

59

160

115

Vlining

51

120

100

0

100

129

0

250

- 1 3

88

121

- 2 3

36

27

128

28woo

130

109

170

78

39

267

100

450

84

38

35

12

13

3

114

33

110

160

- 8

93

286

37

133

115

131

233

138

104

142

35

58

131

116

72

8

80

85

76

0

Contract

construction

136

131

77

117

108

112

86

206

124

119

137

120

245

145

32

153

160

162

140

148

142

126

159

89

111

259

165

105

128

154

142

163

155

84

97

128

113

226

230

100

258

96

1.30

120

120

123

264

208

168

153

135

267

203

112

108

62

186

118

U

Manuacturing

93

59

46

58

49

55

23

79

74

63

81

78

164

102

23

89

93

97

100

76

85

111

102

103

104

67

82

99

183

103

98

78

129

107

85

85

111

192

100

105

101

111

185

142

185

147

398

134

102

133

91

136

167

166

112

59

191

198

33

Wholesale and

retail

trade

67

58

61

67

64

48

49

79

58

53

84

55

89

77

22

68

69

73

75

62

65

60

59

56

57

72

63

54

72

85

82

69

76

80

79

78

82

137

80

65

91

44

89

68

89

125

123

74

71

36

50

97

70

61

53

38

102

65

43

Finance,

insurance, and

real estate

146

127

153

192

171

116

118

137

109

96

140

125

107

159

68

144

153

150

189

124

152

155

157

152

136

212

180

160

200

203

168

148

180

133

216

283

189

303

183

205

212

171

221

156

221

475

284

206

200

190

200

218

194

167

118

147

375

175

92

Transportation

56

42

61

47 '

44 1

36

46

47

49

48

65

45

28

53

25

53

72

57

52

44

57

58

64

35

66

74

21

55

57

60

62

51

46

43

84

46

55

101

23

46

80

56

68

65

71

60

42

64

58

51

43

88

56

66

51

63

67

70

29

, by States and

Communications

and public utilities

121

94

84

79

62

99

58

110

102

95

119

110

183

122

39

114

135

128

124

92

107

128

127

129

129

150

122

127

128

152

145

138

144

152

148

147

120

233

150

178

140

138

170

133

164

389

205

146

150

117

180

143

164

129

180

117

180

138

U

Services

93

91

64

81

67

96

51

104

87

78

113

88

124

113

54

96

103

99

84

93

97

96

109

95

90

89

90

94

93

95

114

76

93

84

76

79

75

140

85

67

115

64

114

92

105

267

148

110

98

98

93

127

95

90

69

68

249

92

56

1. Consist, of wage and salary disbursements, other labor income, and proprietors' income.

should be kept in mind in interpreting the

percentage changes recorded in the tabulation; as might be expected, there tends to

be an inverse relationship between size of

relative income expansion and market concentration.

First to be noted from the tabulation is

the similarity between changes in the regional distributions of personal income and

private nonfarm income over the long span

from 1929 to 1957. This is significant in

view of the particular suitability of the

private nonfarm income measure for evaluating basic developments over the short

run as well.

A second fact revealed is that the shifts

in private nonfarm income from 1947 to

1957 accorded with those over the whole

period since 1929. Thus, we can infer with

considerable assurance that postwar economic developments among broad regions

of the Nation were generally in line with

long-run trends. This continuity is portrayed in Figure 18.

Both in the postwar decade and over

the whole period since 1929, the pattern

of regional income shifts included relative

declines in New England and the Mideast;

relative gains in the Far West, Southwest,

Southeast, and Rocky Mountain States;

and comparatively little change in the

shares of the Great Lakes and Plains States.

A noteworthy difference between postwar

and long-run developments occurred in

the Southeast, where aggregate income expansion in the past decade exceeded the

countrywide average only moderately, as

against the region's outstanding growth

since the late 1920's.

For a rounded view of developments in

this area, however, attention should be

called to a fact previously noted—that

over this decade the Southeast's percentage

increase in per capita real income was

largest among the regions. In addition to

the fact that the area's total income rose

somewhat more than the nationwide rate,

both population growth and the rise of

consumer prices in the Southeast were

moderately below average. Reflecting these

events was an increase of one-third in the

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EXPANSION OF REGIONAL MARKETS 37

Southeast's per capita real income, as compared with a little over one-fifth for the

country as a whole.

REGIONS DIFFER WIDELY IN SIZE

Perspective on the income changes just

reviewed requires recognition of the fact

that the regions vary substantially in their

economic dimensions. As measured by personal income, these are set forth in the

accompanying text table.

Personal Income—Billions of Dollars

United States

New England.. __ - -_

Mideast

Great Lakes

Plains

Southeast .- _. . . . _

Southwest

Rocky Mountain

Far West -

1929

85.7

7.1

27.5

20.2

7.6

10.0

4.3

1.6

7.4

1947

189.1

13.0

50.1

42.5

16.7

28.4

11.8

4.2

22.3

1957

345.3

22.7

87.9

77.6

27.9

53.1

23.4

7.7

45.0

It is instructive to view the regional

shifts in terms of absolute increases in income. Total personal income received in

the four regions of the South and West

totaled $129 billion in 1957, as compared

with $23 billion in 1929. Though starting

from a lower income base, this expansion

considerably outstripped that in New England and the Mideast—from $35 billion to

$111 billion.

There are numerous parallels between

New England and the Mideast in respect

to their patterns of development. However, the most fundamental characteristic

they have in common is simply their comparative economic maturity. The reductions in the percentages of income received

in New England and the Mideast reflect in

large measure the industrial, commercial,

and population growth of the newer and

less developed parts of the country. Any

tapering in this rate of growth would make

the forces underlying the shift in the distribution of income toward the South and

West less strong in the future than they

were in the past. And it is to be emphasized that New England and the Mideast

still account for one-third of the Nation's

personal income and are principal centers

of population and production.

While this section on "Longer-Run Perspective" has been brief, it might be noted

that long-term trends by States and regions

were measured and analyzed in some detail in the Personal Income volume.

DIFFERENTIALS IN AVERAGE

INCOMES

Relative movements in per capita income by regions over the postwar decade

were fairly uniform—more so than the

movements in total income. Notwithstanding, per capita incomes rose more than

average in New England and the Southeast, and less than average in the Plains,

Rocky Mountain, and Far West areas.

Whereas the ratios of regional per capita

incomes to the national average were not

altered markedly over the postwar period,

there has been a pronounced longer-run

tendency toward a reduction in these differentials. As shown in the tabulation

below, relative differences in per capita

income among the regions were substantially smaller in 1957 than in 1929.

Regional as percent of national

per capita income

New England.

Mideast

Great Lakes .

Plains.

Southeast

Southwest

Rocky Mountain _ _

Far West .

1929

125

138

114

81

52

67

85

129

1940

127

133

112

81

58

70

89

132

1944

110

120

110

88

68

85

92

130

1947

109

118

111

95

67

84

101

124

1957

113

118

109

90

70

86

92

119

Over this period, the percentage by

which per capita incomes exceeded the national average declined in New England,

the Mideast, the Far West, and Great

Lakes States—all high-income areas. At the

same time, each of the four regions with

comparatively low per capita incomes

showed improvement relative to the national average. On a State basis, the lessening of relative differences in average income

levels is evident to a striking degree.

Examination of the text table reveals

that the bulk of the reduction in regional

differentials actually took place during the

war years 1940-44. Shifts prior to 1940

were generally small, and the regional differentials obtaining in 1944 were carried

over with only moderate alteration into the

postwar period and since then, as noted,

have tended to remain relatively stable in

most regions. Significant exception to pattern is afforded only by the Far West.

CONSIDERATIONS OF RECENT STABILITY

Since the recent comparative stability

in the per capita income relatives is at variance with the considerable narrowing recorded over the long run, a problem arises

in trying to decide which of the two broad

patterns offers the better guide to the

future. Unfortunately, there is no certain

answer. We are inclined, however, to the

thesis that the longer-term measures are of

greater significance in this regard.

It was pointed out that several special

influences affected regional changes in

total personal income during the postwar

period. Their impact on per capita income

cannot be measured, for lack of knowledge

regarding the interaction, or interrelation,

between income and population changes.

However, these special influences which

were operative on total income are nevertheless quite relevant to an evaluation of

the postwar stability in regional per capita

income differentials, and the attempt

should be made to take account of them at

least qualitatively.

For instance, the postwar decline in farm

income was singled out as a principal development serving to obscure the basic income trends. This development dampened

relative income growth in several of the

low-income regions, and had a contrary,

relatively favorable, effect on the totalincome shares of New England and the

Mideast.

Regarding the trend significance of the

postwar pattern of regional per capita

incomes, there is another aspect that warrants consideration. It stems from the character of developments in the prewar and

war periods. Broadly speaking, regional

per capita income differentials widened

and then narrowed as underlying secular

forces in the national economy were first

checked by depression, gradually relaxed

during the prewar recovery, and then unleashed in the upsurge of the economy to

full employment during the war. In view

of these sweeping shifts, as depicted in

Figure 19, it seems relevant to conjecture

whether the reduction in regional differentials that had taken place by 1944 might

have happened somewhat sooner than

would have been the case under conditions

of generally full employment throughout

the period. If so—if the reduction in regional income differentials under such conditions would have come more gradually—

then the stability of these differentials over

the postwar period has restricted meaning

as a reflection of the basic trend.

In any event, study of the course of geographic per capita income differentials

within the past three decades has not uncovered a sufficiently regular pattern of

development to warrant any considerable

basis for judgment of the probable future

course. Nor does reasoning along the above

lines, which was amplified in the Personal

Income bulletin, point to a definitive solution of the problem.

Reduction in average income differentials has been one of the most fundamental

regional developments. Despite the difficulties involved, additional research is needed

to aid in ascertaining the main underlying

factors, with the idea that these might aid

in understanding the basic trend.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
38 THE ECONOMY VIBWED THROUGH THE NATIONAL INCOME ACCOUNTS

Table 4.—Personal Income by Broad Industrial Sources

Mideast.

Plains

Southeast.

Southwest.

Far West.

1. Consists of net income of farm nronrietors, farm wages, and farm "other" labor income, less personal contributions under the OASI program.

2. Consist of income disbursed directly to persons by the Federal and State and local governments. Comprise wages and salaries (net of employee contributions for social insurance),

other labor income, interest, and transfer payments.

3. Equals total personal income less farm income and government income disbursements.

State and region

Continenta l Unite d State s _._ .. . ..__... .

N e w Englan d

Maine .. _. - ___ . - _. .. . .

New Hampshire

Vermont

Massachusetts ._. _. ._ _. .. ___ ..

Rhode Island

Connecticut . _._ ._ ..

Mideast

New York

New Jersey. _...__ _ _ _

Pennsylvania

Delaware

Maryland .__. . . _ _

District of Columbia

Great Lakes

Michigan - .. -. . . . .

Ohio

Indiana - _ __

Illinois

Wisconsin

Plains

Minnesota

Iowa - - - -

Missouri

North Dakota

South Dakota ._.-.__--_ _ . - _ ..

Nebraska

Kansas

Southeast

Virginia

West Virginia . ..

Kentucky

Tennessee - - -

North Carolina .. - ._ ._ .. . _

South Carolina

Georgia - . .__ __ __ ._ .. ..

Florida

Alabama - - - - __._--

Mississippi

Louisiana

Arkansas __ - -

Southwest

Oklahoma ._ .. . __. _ _ .

Texas

New Mexico. - ._._ _ _ - _ _

Arizona

Rocky Mountain _ _

Montana - - - -

Idaho

Wyoming _ _ _ _ _ _

Colorado

Utah -

Far West - _.. ...

Washington _

Oregon

Nevada _ . - ._ _ __ . . _._ _

California - -

Territor y of Ha w oi l - .___ _ _ _ _

Total

income

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100. G

Percent of personal income

Farm

income1

4.1

1.3

4.7

2.4

7.5

.6

.5

1.2

.9

.9

.9

1.1

2.1

1.2

3.1

1.9

1.9

4.7

3.2

6.3

12.1

8.4

20.8

5.7

24.2

28.9

20.2

7.0

6.2

3.6

2.2

7.9

6.1

9.3

7.0

5.7

4.9

5.7

12.3

4.1

14.1

6.2

5.0

6.0

6.7

10.2

9.3

16.6

15.9

11.6

5.7

5.3

4.2

5.2

6.0

3.7

3.9

7.7

$, 1957

Government income disbursements

 2

Total

16.9

16.4

20.0

18.4

17.1

17.6

22.3

11.3

15.9

14.9

13.7

14.3

11.8

23.8

43.8

13.1

13.3

12.9

13.2

12.9

13.7

16.4

15.4

14.7

15.3

19.1

20.1

17.7

19.8

21.4

29.7

14.9

19.8

18.5

18.6

22.9

21.5

20.5

22.8

23.4

19.9

23.1

19.5

23.1

17.9

27.0

20.8

20.5

18.4

18.4

20.5

21.4

21.9

18.9

22.4

17.6

19.9

18.5

S8.6

Federal

10.3

10.2

13.9

12.5

10.4

10.9

15.8

6.2

9.7

7.7

8.3

9.3

7.4

18.1

39.7

7.3

6.5

7.6

7.4

7.6

7.2

9.6

8.1

8.3

9.3

10.5

12.7

11.1

12.6

14.2

23.9

8.5

13.3

11.7

11.7

16.1

14.5

13.9

15.0

14.7

9.7

15.4

12.5

14.0

11.6

17.5

13.0

12.8

10.9

10.9

12.7

13.4

14.6

11.1

14.2

9.7

13.0

10.7

SO. 2

State and

local

6.6

6.2

6.1

5.9

6.7

6.7

6.5

5.1

6.2

7.3

5.4

5.1

4.3

5.7

4.1

5.8

6.8

5.4

5.7

5.3

6.5

6.8

7.3

6.4

6.1

8.6

7.4

b. 6

7.3

7.1

5.8

6.4

6.5

6.8

6.9

6.8

7.0

6.6

7.9

8.7

10.2

7.7

7.0

9.1

6.2

9.5

7.8

7.7

7.4

7.5

7.8

8.0

7.4

7.8

8.2

7.9

7.0

7.8

8. A

Private

nonfarm

income3

79.0

82.3

75.3

79.2

75.4

81.8

77.2

87.6

83.2

84.2

85.4

84.6

86.2

74.9

56.2

83.9

84.8

85.2

82.2

83.9

80.0

71.6

76.3

64.5

79.0

56.7

51.0

62.1

73.2

72.4

66.7

83.0

72.3

75.4

72.1

70.1

72.8

74.6

71.5

64.4

76.0

62.9

74.3

71.9

76.2

66.3

69.0

70.2

65.1

65.7

67.9

72.9

72.8

76.8

72.4

76.4

76.4

77.6

53.6

Percent changes by broad industrial source

Total

personal

income

83

74

60

73

61

73

52

91

75

71

94

70

140

105

37

83

89

91

85

73

76

67

75

69

76

11

45

68

60

87

92

59

75

73

76

80

87

159

78

50

111

54

98

70

96

143

165

84

64

60

69

102

93

102

74

63

151

111

52

Farm

income

- 1 8

- 1 9

- 2 2

- 1 1

- 1 1

- 2 8

- 1 8

- 1 2

- 2 4

- 1 7

- 1 5

- 3 4

0

- 3 5

- 1 6

- 2 3

—25

- 1 9

- 1

- 2 1

- 1 7

- 2 2

24

- 8

- 5 4

- 1 0

13

- 6 5

- 1 8

- 2 4

- 3 8

- 2 0

- 2 4

- 1 2

- 2 1

- 2 0

59

- 3 1

- 3 6

- 2 4

- 2 1

- 2 7

- 5 4

- 3 0

- 1 0

80

- 2 3

- 1 6

- 1 4

- 1 6

- 3 9

- 2 1

2

- 2 0

— 14

- 8

6

10

Nonfarm

income

93

77

68

77

72

74

53

93

78

72

96

72

147

111

37

90

95

97

97

77

92

94

98

87

86

99

95

91

110

104

104

64

95

88

96

99

103

168

97

85

129

83

124

98

122

177

181

114

102

90

95

134

109

111

86

73

169

120

57

5, 1947 to 1957

Government income disbursements

Total

108

98

108

104

95

98

82

101

94

91

117

87

207

164

32

101

90

112

126

86

117

105

99

103

93

91

120

112

139

119

116

87

115

88

110

115

135

171

122

77

152

96

129

101

123

205

198

120

121

106

140

131

98

123

94

119

269

129

70

Federal

94

99

137

102

91

93

92

104

80

72

95

80

207

156

29

97

108

98

116

81

111

94

81

94

72

80

127

113

141

96

104

69

94

61

81

100

111

156

97

50

82

78

115

93

107

188

188

111

109

104

128

123

89

96

83

92

300

97

66

State and

local

136

97

63

110

100

108

61

98

122

116

164

101

206

193

76

105

75

135

141

95

124

125

123

116

138

108

111

111

135

189

179

118

173

165

189

160

203

211

193

156

297

148

158

116

159

241

216

135

141

111

163

145

116

178

116

164

221

194

88

Private

nonfarm

income

90

73

60

72

68

'70

46

92

75

69

93

70

141

98

41

88

96

94

94

76

89

92

97

84

85

102

86

86

113

100

99

61

90

88

93

95

96

167

90

88

124

79

123

97

122

167

176

113

97

86

84

135

113

109

84

65

151

118

49

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
EXPANSION OF REGIONAL MARKETS

Table 5.—Industrial Composition of Civilian Income in 1957

39

State and region

Continental United States - - ..

New England

Maine - -

New Hampshire - - -

Vermont

M assachusetts

Rhode Island

C onnecticut -

Mideast

New York

New Jersey -

Pennsylvania _ -

Delaware

Maryland

District of Columbia

Great Lakes

Michigan - ._ _

Ohio

Indiana

Illinois

Wisconsin

Plains, .

Minnesota - -

Iowa _-

Missouri

North Dakota

South Dakota

Nebraska _- - _.

Kansas

Southeast

Virginia

West Virginia - - - -

Kentucky _ . __ _ _

Tennessee

North Carolina

South Carolina __ -

Georgia .. -

Florida

Alabama

Mississippi

Louisiana

Arkansas - _. -

Southwest __

Oklahoma

Texas -

New Mexico __ __ .. .

Arizona . _..__ .

Rocky Mountain

Montana . _. _.

Idaho

Wyomin g

Colorado. .__-.-._._ _ _

Uta h

Far West

Washington _

Oregon

Nevada _ . ._

California

Territory of Hawaii

Total

100.0

100.0

100 0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100 0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

]

Farms

5.2

1.7

6.1

3.1

9.6

.8

. 7

1.5

1.2

1.1

1.0

1.3

2.9

1.6

3.7

2.3

2.3

5.6

3.9

7.7

15.1

10.3

25.6

7.1

29.7

35.9

25.6

9.1

7.9

4.7

2.6

10.0

7.4

11.7

9.1

7.2

6.7

6.9

15.5

5.2

18.4

7.9

6.4

7.6

8.5

12.8

11.7

20.4

19.5

14.8

7.5

6.4

5.4

6.7

7.4

4.8

5.0

11.1

Percent distribution by industry of civilian income received by persons for participation in current production

 ]

Mining

1.8

.2

.2

.1

1.2

.2

. 1

.1

.9

.2

. 3

2.8

.1

. 3

.8

. 7

.8

.8

1.0

.4

1.4

2.4

.4

.6

1.4

1.4

.5

3.4

3.3

1.8

20.1

6.1

.9

.3

.2

. 5

.7

2.4

1.7

7.6

2.3

7.3

10.1

6.6

9.0

6.2

5.6

7.7

3.1

10.1

3.8

7.8

.8

.3

.3

4.6

.9

.1

Contract

construction

6.7

6.4

6.9

6.4

5.5

5.8

5.6

7.6

5.8

5.3

6.6

5.7

8.9

8.3

4.1

6.4

5.8

6.8

6.0

6.6

6.1

6.7

8.1

5.3

6.4

7.9

7.0

5.3

7.2

7.3

6.7

6.8

6.7

5.9

5.8

6.0

6.3

11.8

7.3

5.5

8.9

6.0

7.9

6.8

7.7

9.4

10.2

9.1

6.4

8.8

9.2

10.2

9.2

7.5

7.4

6.7

11.4

7.5

7.2

Manufacturing

31.1

39.6

33.9

39.6

30.5

37.4

40.8

45.2

34.1

29.7

40.8

41.1

46.0

27.7

3.5

41.5

47.1

43.8

43.1

35.6

38.9

21.5

22.7

19.8

28.2

3.3

5.8

12.5

22.6

24.4

21.2

26.0

25.6

30.0

32.7

35.0

27.0

11.6

29.2

21.0

18.7

19.2

17.4

14.9

19.4

6.6

12.9

13.7

10.1

14.7

8.2

14.8

15.9

26.1

26.2

25.2

6.1

26.5

10.3

Wholesale

and retail

trade

19.4

17.9

19.9

17.0

18.4

18.8

18.8

15.9

19.5

22.0

17.7

17.0

14.6

17.9

17.4

18.0

16.8

17.2

17.3

19.8

18.4

20.8

21.0

19.3

21.7

24.0

19.8

20.3

20.5

19.7

18.8

15.1

17.9

21.0

18.8

17.7

21.9

24.4

17.7

20.4

19.9

18.3

21.2

21.4

21.8

17.7

19.1

20.3

19.0

18.7

15.8

22.6

19.4

20.0

20.4

21.8

18.1

19.7

19.9

Finance,

insurance,

and real

estate

4.7

5.3

3.6

4.3

3.9

5.5

4.9

5.7

5.5

7.1

4.7

3.8

3.4

4.4

4.4

3.8

3.1

3.5

3.5

4.8

3.7

4.4

4.7

3.7

4.8

3.3

3.2

4.9

3.9

4.3

4.2

2.6

3.4

4.0

3.7

4.0

4.8

7.0

3.9

3.6

4.1

3.6

4.7

4.4

4.8

4.1

4.5

4.1

3

 r

3.3

3.5

4.8

4.1

5.3

4.7

4.6

3.6

5.5

3.2

Transportation

5.4

3.5

4.8

3.4

5.3

3.7

3.3

2.7

5.5

5.3

5.3

6.0

4.8

5.8

4.3

5.0

3.4

5.3

5.2

6.0

4.2

6.7

6.9

4.7

7.5

7.0

3.3

7.2

8.1

5.7

6.9

6.7

6.8

5.4

4.5

3.2

5.6

5.8

4.8

4.2

7.1

6.3

5.9

5.5

6.3

5.0

4.0

7.3

8.7

6.5

11.7

6.4

7.0

5.3

6.1

6.7

6.7

5.0

5.7

Communications

and public

utilities

2.8

2.9

2.9

3.1

2 7

3.1

3.1

2.5

3.0

3 2

2.8

2.8

2.0

2.9

3.0

2.5

2.6

2.3

2.3

2.7

2.5

2.7

2.5

2.5

3.1

2.6

2.3

2.4

3.1

2.6

2.5

3.7

2.6

2.0

2.1

2.1

2.7

2.7

2.5

3.0

3.2

3.2

3.2

3.5

3.0

3.9

3.6

3.1

2.9

3.0

2.7

3.3

3.0

2.8

2.3

3.2

2.7

2 9

3.0

Services

11.8

12.4

9.8

11.8

12 3

13 5

10.8

11.5

13.3

15 0

12.4

10.7

9 9

12.3

19.5

10.0

9.6

9.5

7.9

11.5

9.5

10.6

11.0

9.7

11.6

8.9

8.9

10.2

10.3

11.5

11.5

8.4

10.3

11.3

10.0

10.1

10.9

16.6

9.8

11.0

12.7

10.2

12.0

11.9

11.6

15.8

12.9

10.9

9.7

10.5

10.1

12.5

9.4

13.3

10.8

11.8

28.5

13.6

12.9

Federal

Government

3.9

3.1

4 2

4.4

3 1

3 5

5 0

1.3

4.3

2 7

2 4

3.3

2 0

11 8

38.9

2.1

1.3

2.7

2 0

2.3

1.5

2.8

2.2

2.0

3 1

3.4

4.3

3.5

3 6

5.4

14.1

1.7

3.7

4.9

2.6

4.8

5.6

4.2

7.8

4.8

2.8

4.3

5.0

6.5

4.3

9.0

5.0

6.2

3.7

3.9

5.1

6.4

10.3

4.5

5.9

3.4

5.9

4.4

15.5

State and

local government

6.9

6.6

6 5

6.5

7 2

7 2

6 5

5.5

6 7

8 0

5 7

5.2

5 4

6 6

4.6

6.1

7 1

5 5

6 0

5 6

7 0

7.0

7.8

6.7

5 6

8 5

8.0

7.4

8 0

7.4

7.0

6.3

6.7

7.1

7.5

7.5

7.0

7.8

7.5

8.7

9.2

7.5

7.3

8.0

6.7

10.7

8.6

7.8

8.0

7.8

8.8

7.7

7.4

8.3

8.5

8.5

7.6

8 3

10.5

Other

0.3

.6

1 2

.4

4

4

.5

3

2

3

.2

2

5

.3

.2

1

3

2

2

2

.3

.3

.3

2

1

.2

9

2

.4

. 5

. 1

.2

2

.3

.3

.6

.8

.2

.5

.6

.7

. 3

.5

. 3

.4

.3

(

2

)

.2

(

2

)

. 1

. 1

.6

.6

.4

.2

. 7

• 4

1. Dollar figures underlying these percentages are published in table 70, page 21, of the August 1958 SURVEY OF CURRENT BUSINESS.

2. Less than .05 of one percent.

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THE ECONOMY VIEWED THROUGH THE

NATIONAL INCOME ACCOUNTS

3. Family Income and

Buying Power

High levels of productive activity during

the postwar period have given a substantial

lift to the flow of incomes to consumers.

In turn, the buying power thus generated

has stimulated the demand for the goods

and services turned out by the productive

establishments of the Nation. This stimulus has been exerted directly through a

broad and active market for consumption

goods, and indirectly through the investment market, which has absorbed a record

volume of capital goods and inventories

to facilitate the enlarged flow of consumption.

The broad dynamics of these mutually

interacting events have been outlined in

Chapter 1, and Chapter 2 has dealt with

regional aspects. We shall now examine

the size structure of consumer incomes and

buying power, since this is a particularly

important link in the complete chain of

developments.

The current average income of American

families and single consumers is high—it

was more than $6,000 in 1957. This average summarizes a distribution which shows

prosperity to be widely diffused among the

more than 50 million consumer units that

comprise the Nation. Moreover, we are

not dealing here with a static record. With

only minor interruptions, American families have risen on the income scale during

the postwar period, and have provided an

expanding mass market for relatively expensive types of consumption goods and

services. This market is a unique characteristic of the United States economy.

These major conclusions are drawn from

OBE's estimates of the size distribution of

family incomes, which also provide detailed documentation to support them, as

well as the qualifications that necessarily

go with broad generalizations of this type.

These estimates provide cross-section

views of the distribution of before-tax

income by size of income and of the number of families and single consumers in

each income bracket. They also furnish

information on income taxes paid by the

various income groups and of the distribution of income after such taxes. The

40

latter are a close approximation to a distribution on a disposable-income basis.

Separate data are also given on the beforetax distribution of incomes of nonfarm

families, farm families, and single consumers. This information on taxes and on

major consumer groups makes possible a

more precise interpretation of the broad

conclusions relating to the level and distribution of family incomes.

The key series have been prepared in

current dollars for selected years covering

Fig. 21

Family Personal Income

In 1957

Distribution by Income Bracket

the war and postwar periods, and supplementary estimates adjusted for price

changes have also been made. These time

series show the upward shift of consumer

incomes in terms of current dollars, and

permit separation of the price and real

volume factors that have contributed to

this shift.

Finally, special estimates of the size distribution of income for the year 1929 have

been prepared. These put into historical

perspective the rise along the real income

scale and the broadening of the prosperous

middle-income markets which it entailed.

A CROSS-SECTION VIEW OF

FAMILY INCOMES

The 1957 distribution of families and

single consumers and their incomes along

the income scale is shown in Figure 21

(and in Table 1). The largest proportion

of consumer units—one-fourth of the

total—was in the income range between

$4,000 and $6,000. This bracket included

the median family income of $5,060; onehalf of the units had incomes below this

amount and one-half had incomes above it.

About two-fifths of families and single consumers were in the two adjacent income

brackets, $2,000 to $4,000, and $6,000 to

$8,000. The latter bracket included the

mean family income of $6,130.

Fourteen percent of the total—comprising in large part single individuals and

farm operator families—received incomes

of less than $2,000. The remaining 20 percent had incomes above $8,000, with the

proportions decreasing rapidly in the top

income brackets.

The distribution of income was pitched

higher on the income scale than the distribution of consumer units. In the chart

this is particularly visible in income brackets above $8,000, which include much

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FAMILY INCOME AND BUYING POWER 41

larger proportions of aggregate income

than of consumer units, and in brackets

below $4,000 for which the reverse is true.

Impact of Taxes

Because of taxation, the distribution of

current buying power differs from that of

before-tax incomes. Table 2 summarizes

salient features of the Federal individual

income tax, which was the most important

factor in this connection.

In 1956, the latest year for which tax

distribution estimates could be prepared,

Federal individual income tax liabilities

totaled about $32 billion. (Capital gains

taxes are excluded from this total because

the gains themselves are not part of personal income.) This represented an average tax of about $600 per family and unattached individual. State and local income

taxes, which are not examined here, would

have added only $30 to this average.

A larger than proportionate share of the

Federal income tax was paid by the high

income recipients. Effective tax rates (tax

liability expressed as a percent of total

before-tax personal income) increased

from a negligible proportion in the low

brackets to 21 percent in the $15,000 and

over group.

The graduation of the Federal income

tax is most substantial in the $15,000 and

over range, which is not broken down

further for 1956 because of lack of detailed information. Units in the higher part

of this range are subject to tax rates that

are much heavier than the average for

the group.

Personal income, it should be noted, includes nontaxable items, such as certain

types of income in kind and transfer payments; and all taxable forms of personal

income are not fully reported on income

tax returns. Thus, the effective rates on

personal income are somewhat lower than

those derivable from tax data.

Moreover, because the rates shown in

Table 2 are averages on total income before deductions and exemptions, they are

substantially lower than the marginal

rates, implicit in these averages, to which

increments of income are subject.

Finally, effective rates for given income

brackets represent averages on the incomes

of families differing widely with respect

Family income

 l

Under $2,000...

$2,000-13,999----

$4,000-$5,999

$6,000-$7,999

$8,000-$9,999

$10,000-114,999-.

$15,000 and over

Total

Percentage distribution

in 1956 of—

Before-tax

income

2.8

12.4

21.5

20.4

12.0

13.6

17.3

100.0

After-tax

income

3.5

15.3

26.2

19.6

10.5

12.5

12.4

100.0

1. Represents income brackets before tax for the first column, and after-tax for the second.

to composition and size and hence with

respect to tax liability.

Reflecting the impact of the Federal income tax, after-tax family income was 10

percent less than before-tax income, and

its distribution differed noticeably from

that of the before-tax aggregate. As can

be seen from the accompanying tabulation,

families with before-tax incomes below

$6,000 in 1956 received 37 percent of the

Table 1.—Distribution of Consumer Units and Their Income by Income Level, 1947 and

1953-57

Family personal income

(before income taxes)

Under $2,000

$2,000-$3,999___

$4,000-$5,999

$6 000-$7 999

$8,000-$9,999

$10,000-$14,999

$15,000 and over - -

Total

Under $2,000

$2,000-$3,999_

$4 000-$5,999

$6,000-357,999

$8,000-$9,999 .

$10,000-$14,999

$15,000 and over

Total

Number of families and unattached

individuals (millions)

1947

11.1

17.1

9.2

3 8

1.5

1.2

.8

44.7

1953

8.5

13.4

13.3

7 8

3.4

2.6

1.5

50.5

1954

9.0

13.8

13.1

7.7

3.3

2.7

1.6

51.2

1955

8.2

13.6

13.5

8.5

3.6

3.0

1.8

52.2

1956

7.6

12.7

13.5

9.2

4.3

3.5

2.0

52.8

1957

7.3

12.1

13.6

9.6

4.8

3.9

2.2

53.5

Family personal income

dollars)

1947

13.2

51.2

44.5

26.0

13.3

14.3

22.1

184.6

1953

9.9

40.8

65.8

53.5

29.8

31.6

40.8

272.2

1954

10.5

42.0

65.1

53.2

29.1

31.9

42.2

274.0

1955

9.6

41.4

66.9

58.5

32.2

36.2

47.1

291.9

billions of

1956

8.9

38.6

67.0

63.5

37.7

42.5

54.1

312.3

1957

8.5

36.9

67.4

66.3

42.6

46.7

59.8

328.2

Percent distribution

25

38

20

9

3

3

2

100

17

27

26

15

7

5

3

100

18

27

26

15

6

5

3

100

16

26

26

16

7

6

3

100

14

24

26

17

8

7

4

100

14

23

25

18

9

7

4

100

7

28

24

14

7

8

12

100

4

15

24

19

11

12

15

100

4

15

24

19

11

12

15

100

3

14

23

20

11

13

lh

100

3

12

22

20

12

14

17

100

3

11

21

20

13

14

18

100

income total; those above $6,000, 63 percent of it. In terms of after-tax incomes—

a closer approximation to consumer purchasing power—45 percent of the national

total was accounted for by consumer units

with less than $6,000, and 55 percent by

units with more than that sum.

T h e contrast was particularly pronounced in the top ranges. Thus, in terms

of before-tax income, families with $15,-

000 and over received 17 percent of the

national total; those that remained in this

income bracket after paying their income

taxes accounted for only 12 percent of the

national market in terms of after-tax purchasing power.

Income of Consumer Groups

Additional features of the income structure of consumer markets are revealed by

distinguishing among three broad groups

of consumer units. The largest of these—

nonfarm families—covers all units of two

or more related persons other than the

farm group. Numbering 38/2 million in

1956, nonfarm families accounted for 73

percent of all consumer units. Farm operator families—those operating farms whether tenant- or owner- operators—totaled 5

million, or 9 percent. Included in this

group are full-time farmers as well as families whose farming operations represent

only secondary pursuits.

The third group of 9/j million unattached individuals, 18 percent of the total,

consists of persons other than institutional

residents not living with relatives. Included are persons living alone (or with

nonrelated persons) in their own house or

apartment, as well as lodgers and servants

in private homes, lodging houses, and

hotels.

The highest average income is found in

the nonfarm family group. In 1956 personal income averaged $6,920 for these

families, as compared with $4,035 for the

farm operator group (including their income from nonfarm as well as farm

sources). The comparable average for unattached individuals was $2,800.

Reflecting this range in average income,

there were substantial differences in the

distributions by income brackets of the

three groups of consumer units. Farm

operator families and, in particular, unattached individuals, are much more heavily concentrated in the lower ranges of the

income scale than nonfarm families. (See

Table 7.) In 1956, for example, 43 percent of unattached individuals and 30

percent of farm operator families received

personal incomes of less than $2,000, as

compared with only 5 percent of nonfarm

families. Also, only some 10 percent of the

individuals and 25 percent of the farm

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42 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

group are estimated to have had incomes

above $5,000, compared with over 60 percent of nonfarm families.

In an interpretation of the income distribution of the farm operator group, attention is called to the significant element

of imputed income from food and housing

that is included. Food produced and conunderstatement of actual economic status

that occurs for consumer units that were

in existence for only part of the year and

are listed at their part-year incomes. This

type of downward bias in the income distributions affects multiperson family units

also, but is believed to be relatively more

important for unattached individuals.

Table 2.—Distribution of Consumer Units, Family Income, and Federal Individual Income

Tax Liability, by Income Level, 1956

Family personal income (before income taxes)

Under $1,000..,.

$l,000-$l,999

$2,000-$2,999

$3,000-$3,999

$4,000-14,999

$5,000-$5,999

$6,000-$7,499

$7,500-$9,999

$10,000-$14,999_.

$15,000 and over

Total

Number of

families and

unattached

individuals

(millions)

2.7

5.0

5.9

6.8

7.0

6.5

7.4

6.0

3.5

2.0

52.8

Family personal income

(billions of

dollars)

Federal

individual

income tax

liability

(billions of

dollars)

1.4

7.5

14.7

23.9

31.2

35.8

49.7

51.5

42.5

54.1

312.3

0.0

.2

.7

1.4

2.1

2.8

4.4

4.7

4.4

11.3

32.0

Tax rate

(percent)

0.0

2.7

4.8

5.7

6.6

7.8

8.9

9.1

10. 5

20.9

10.2

sumed by farm families is valued at farm

prices, although for some purposes a retail

valuation might be more appropriate. Valuation of imputed income at retail prices

would decrease somewhat the proportions

of farm operator families in the low income brackets.

More broadly, the basic differences in

the mode of living make meaningful income

comparisons between farm and nonfarm

families very difficult. In spite of the imputation of key items, many forms of income

and production that arise within households escape measurement although similar

items are taken into account if they are part

of a market economy. Items thus omitted

are relatively more important for farm than

for urban families.

Also, the greater complexity of urban

life calls for many unavoidable expenditures in the course of earning one's living

which have no counterpart in the rural

economy. On the other hand, the urban

population has access to many types of consumption goods and services which are not

easily available to farm families. For these

and other reasons it is not possible to measure with any degree of precision differences in the level of living for farm and

urban families. The conclusion that is most

usually drawn, however, is that comparisons based upon the present income definitions tend to overstate the economic

status of nonfarm families relative to that

of farm families.

In connection with the large proportion

of unattached individuals in the low income brackets, note should be taken of the

More generally, it should be noted that

even full-period low incomes in a particular

year do not invariably signify inadequate

levels of living. Living status is affected

also by such factors as incomes earned in

adjacent years by the same family unit,

family requirements which vary with the

size and composition of the unit, and the

amount of capital resources available for

supplementing current income receipts.

Source Patterns

The income structure of the large nonfarm family group is examined further in

Table 3, which shows striking differences in

the distribution of major types of income

among family income brackets. Dividends

and business income are concentrated most

heavily in the income range above $10,000,

wages and salaries in the middle income

range between $4,000 and $10,000, and

transfer payments in the range below

$4,000. The high proportion of transfers

flowing to families in low income brackets

reflects the concentration in those brackets

of aged couples living on pensions or oldage benefits and of families dependent on

public assistance.

The figures are rearranged in the lower

bank of Table 3 to show the relative importance of the various types of income in

the family income total for each income

bracket. Wages and salaries represent the

major income source in all income ranges,

but they make a relatively smaller contribution to the income total in low and high

family income brackets than in the middle

income ranges. In the brackets between

$4,000 and $10,000 wages and salaries

comprised over four-fifths of total income

in 1955; below $4,000 and above $10,000

they represented only three-fifths of the

total.

Transfer payments were the most important supplementary income source below

$4,000, accounting for one-fourth of total

family income in that range. Business and

professional incomes, and the various items

of property income, were relatively most

significant in the range above $10,000, each

comprising one-fifth of the total in that

bracket.

POSTWAR RISE IN FAMILY

INCOME

The recent distribution of family incomes is the result of a process of growr

th

that has characterized most of the postwar

period. Total family income rose from $185

billion in 1947 to $328 billion 10 years later.

With the number of families and single

consumers increasing from 45 million to

53/ 2 million over the same period, average

before-tax income advanced, with only

minor interruptions, from $4,130 in 1947

to $6,130 in 1957 (Table 4). Income taxes

accounted for about one-tenth of family

income in most of these years.

Part of the income rise reflected the upward movement of prices. But there also

occurred a substantial increase in real incomes. In terms of 1957 dollars, before-tax

incomes averaged $1,000 higher in 1957

than 10 years earlier (see Figure 22) ; on

an after-tax basis the increase was almost

$900. These real increases represented an

annual average rate of growth of 1 ^4 percent.

The postwar rate of growth has been

somewhat higher than the long-term rate

found for the entire period from 1929 to

date. For before-tax incomes, the 1929-57

growth was V/2 percent per year, and for

after-tax incomes it averaged 1 !/4 percent.

The rise in income taxes that made for the

lesser growth in after-tax incomes occurred

mainly during World War II; in spite of

some reductions in the postwar period, tax

rates did not revert to their prewar levels

as Federal expenditures remained relatively high.

As has been noted in connection with

the discussion of the real GNP, the high

postwar rates of growth cannot be taken as

evidence of a change in long-term trend.

The retardation of normal economic development during the depression of the 1930's,

and the pent-up demands that became efDigitized for FRASER 

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FAMILY INCOME AND BUYING POWER 43

fective after World War II, are important

factors which may account for the differential rates of growth.

Upward Income Shift

The rise in average family income over

the 1947 to 1957 decade was reflected in a

marked upward shift of families along the

income scale. This is illustrated in Figure

23, which compares the income distribution

of consumer units in current dollars for

1947 and 1957.

The chart shows a broad shift of the income distribution curve from the range

below $4,000 on the left-hand side of the

diagram to the higher income bands on the

right-hand side. Reflecting expansion in

economic activity, the rise in prices, and

the increase in the total number of households, families with current-dollar incomes

above $4,000 more than doubled between

1947 and 1957. In the earlier year there

were some 16

 l/i million consumer units in

the range above $4,000; their number increased to 34 million last year. In contrast,

units with incomes below $4,000 declined

from 28 million in 1947 to 19/2 million in

1957. In percentage terms, families and

unattached individuals with incomes above

$4,000 accounted for 37 percent of the total

number in 1947 and 63 percent in 1957.

(See Table 1.)

The broad shift of families from income

brackets below $4,000 to higher income

ranges is mirrored in the distribution of

their total income. In 1957, the 34 million

consumer units that had incomes of more

than $4,000 received about $280 billion of

total income. This contrasted with $120

billion in that range received by 16% million consumers in 1947.

Incomes of all three major component

groups of consumer units did not increase

proportionately over the postwar decade,

and the relative importance of the groups

in the total population also changed. As a

result, the consumer composition of the

various broad income ranges in recent years

has differed substantially from that in 1947.

The total number of farm operator families decreased by almost one million during

this period while nonfarm families and individuals increased by about 9 million.

Over the decade the average income of the

farm group—including their off-farm income as well as net amounts earned from

farming operations—increased relatively

less than that of nonfarm consumer units.

Reflecting these differential changes,

farm operator families accounted for a

smaller fraction of the consumer units in

the upper income ranges in 1956 than in

1947. For example, in the income range

above $4,000, farm operator families comprised 5 percent of the total in 1956 as

compared with over 10 percent in 1947.

Within lower income brackets farm operator families accounted for about the

same proportion of the total in both years.

This stability stemmed from the fact that

the decline in the total number of farm

families was offset by a relatively larger

concentration of them in the low income

range. In interpreting these figures, it

should be recalled that farm incomes were

unusually high in the immediate postwar

years.

Unattached individuals predominated in

the lower income brackets in both 1947

and 1956. However, the relative importance of these individuals within successive income brackets up to about $5,000

was much larger in 1956 than in 1947. In

the earlier year they comprised one-third

of all consumers in the $1,000 to $2,000

income bracket, and one-fifth of those in

the $2,000 to $3,000 bracket; 10 years later

the corresponding proportions were almost

one-half and one-third, respectively.

This change in the composition of the

low income range reflected in part the

Table 3.—Relative Importance of Major Types of Income by Income Level, Nonfarm

Multiperson Families, 1955

Family personal income (before

income taxes)

Under $4,000

$4,000-$5,999 ..

$6,000-$9,999

$10,000 and over_

Total

Under $4,000

$4,000-$5,999 ...

$6,000-$9,999

$10,000 and over^

Total

Nonfarm

families

Total family

personal

income

Wages and

salaries

Nonfarm

business

and professional

income

Dividends

and income from

estate and

trusts

Interest and

rental

income

Transfer

payments

and miscellaneous

income

Percent distribution

28.0

30.4

29.8

11.8

100.0

11.8

23.1

34.0

31.1

100.0

10.3

26.0

38.4

25.3

100.0

2.4

13.9

22.4

61.3

100.0

3.7

6.3

11.6

78.4

100.0

12.0

19.7

28.0

40.3

100.0

54.7

19.2

21.1

5.0

100.0

Percent of total income

100.0

100.0

100.0

100.0

100.0

63.4

81.3

81.7

58.9

72.4

2.0

5.9

6.5

19.3

9.8

1.2

1.0

1.3

9.6

3.8

8.9

7.4

7.2

11.3

8.7

24.5

4.4

3.3

5.3

slightly larger proportion that unattached

individuals comprised of the total population in 1956 than in 1947. But the main

reason for the change was the upward shift

in incomes that took place over the decade.

During a period in which current-dollar

incomes increased on the average by almost

Table 4.—Average Family Personal Income

Before and After Federal Individual Income Tax Liability

Year

1929

1947

1950

1951

1952

1953

1954

1955

1956

1957

Number

of families and

unattached

individuals

(millions)

36.1

44.7

48.9

49.5

50.2

50.5

51.2

52.2

52.8

53.5

Average (mean) personal income per

family and unattached individual

Before tax

In current

dollars

$2,340

4,130

4,440

4,900

5,120

5,390

5,360

5,600

5,910

6,130

In 1957

dollars 1

$3,940

5,120

5,180

5,360

5,500

5,720

5,640

5,870

6,110

6,130

After tax

In current

dollars

$2, 320

3,720

4,070

4,420

4,570

4,810

4,840

5,050

5,310

5,480

In 1957

dollars 1

$3,910

4,610

4,750

4,830

4,910

5,100

5,100

5,290

5,480

5,480

466759 O—59 4

1 The price indexes used as deflators are those employed in

deflating the personal consumption expenditure series in the

national income accounts.

one-half and relative income changes

within the nonfarm sector were small;, the

composition of given income brackets that

prevailed in the beginning of the period

can be expected to shift to income brackets

about 50 percent higher.

Real Income Rise

For many purposes it is of interest to examine the changes in income size distribution that have taken place after the effect

of the price rise has been eliminated, that

is, to determine changes in the size distribution of real incomes. These can be

derived only in rough fashion because

separate indexes applicable to the various

income brackets are not available. It is

therefore necessary to use the same index

throughout the income range even though

all brackets may not have been affected by

the price rise in the same way. Moreover,

available price indexes which refer to consumer expenditures for goods and services

must be applied to income totals that include income taxes and saving as well as

outlays for consumption.

In Table 5 an approximate conversion

of the 1947 current-dollar distribution of

families and unattached individuals into

1957 dollars has been made by applying to

that distribution the price index used in

deflating the personal consumption expenditure component of gross national

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44 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

product. Differences between these 1947

deflated figures and the income distribution for 1957 reflect—approximately—the

shifts that have taken place in real (constant-dollar) family incomes.

The upward shift of families into brackets above $4,000 that was noted earlier in

the current-dollar series appears also,

though substantially dampened, in the constant-dollar figures. The number of consumer units with real (1957-dollar) incomes over $4,000 increased from 23 million in 1947 to the 34 million already cited

for 1957. In the current-dollar series the

number in this range more than doubled.

Similarly, compared with 11^4 million or

26 percent of families and unattached individuals with real incomes above $6,000

in 1947, there were 20/ 2 million, or 38 percent, in that range in 1957. Consumer units

with real incomes above $10,000 increased

in number from 3*/2 million in 1947 to

more than 6 million last year.

Relative Shares

Another view of income and purchasing

power is provided in Table 6 which is designed to show the income position of the

Nation's families relative to each other.

Consumer units have been ranked by size

of their income and divided into five

groups of equal number. The table shows

the percentage share of total income received by each group, and by the top 5 percent of consumers, in 1947 and 1956.

The most striking feature of this table

is the stability in income shares which it

displays. In spite of the marked upward

shift of consumer units on the absolute income scale that has reflected both real

growth and inflation, and in spite of all the

other changes that have occurred in the

American economy during the postwar

years, the relative share of the various

broad income groups in the total consumer

market was much the same in 1956 as it

had been in 1947. Moreover, the stability

has held for all the years for which data

are available—1947 and 1950-57—including, it may be noted, the recession year

1954.

As compared with 1947, only fractional

changes in relative shares have occurred.

Apparently there were small increases in

the relative amounts of purchasing power

received by the three middle groups and a

correspondingly minor decrease for the top

group. In absolute terms, the purchasing

power of all groups increased substantially

over this period.

PREWAR COMPARISON OF

INCOME DISTRIBUTION

Because of deficiencies in the source

data, income size distributions that are

available for prewar years are not comparable in quality to those for the war and

postwar periods. Moreover, significant

comparisons between the postwar and some

prewar data are impeded because it is

difficult to allow for the effects of cyclical

fluctuations, and for changes in the methods

of accounting for income that have occurred over this period in part as a result

of heavier income taxation.

Nevertheless, two bodies of data are

available—Kuznets' series for upper inTable 5.—Distribution of Consumer Units

by Real Income Level, 1947 and 1957

Expansion of Average Family Personal Income

Thousand Dollars

Fig. 22

6 • -

4 • -

2 • -

Current Dollars

Constant (1957) Dollars

/

1929 47 50 51 52 53 54 55 56 57

Family persona]

income in 1957

dollars (before

income taxes)

Under $2,000

$2,000-$3,999

$4,000-$5,999

$6,000-17,999

$8,000-$9,999

$10,000-$14,999..

$15,000 and over

Total

Number of

families and

unattached

individuals

(millions)

1957

7.3

12.1

13.6

9.6

4.8

3.9

2.2

53.5

1947

(in 1957

dollars)i

8.0

13.7

11.5

5.6

2.5

2.1

1.3

44.7

Percent distribution

1957

14

23

25

18

9

7

4

100

1947

(in 1957

dollars)!

18

31

25

12

6

5

3

100

1. For limitations of the adjustment for price changes,

see text.

come groups and a family income distribution based on the Brookings study for

19291—which suggest strongly that the

structure of consumer purchasing power

was significantly different in the last period

of prewar prosperity from that in the postwar decade. While precise measurement is

not possible, these data indicate that the

dispersion of family incomes was smaller

in recent years than in 1929.

Families that comprised the lower and

middle income groups received a larger

proportion of total consumer income in the

postwar period than did their counterparts

in 1929. For the lowest 40 percent of units

the relative income share was 16 percent

in 1956 as compared with about 13 percent

in 1929, and for each of the next two-fifths

the gain was also in the order of 3 percentage points.

Fifths of consumer units

Lowest

2

3

4

Highest

Total .

Top 5 percent _ -

Percentage of total

family income

1929

} »

14

19

54

100

30

1956

/ 5.0

I 11.3

16.5

22.3

44.9

100.0

20.1

Correspondingly, the percentage share

of the highest fifth of consumers decreased

1. Simon Kuznets, Shares of Upper Income Groups

in Income and Savings, National Bureau of Economic Research, New York, 1953 ; Maurice Leven

et al., America's Capacity to Consume, Brookings

Institution, Washington, 1934. The family income

distribution for 1929 that underlies the present discussion represents the Brookings Institution estimates adjusted in several ways so as to make them

as nearly comparable as possible, definitionally, with

the OBE postwar series. The most important of

the adjustments was to remove realized capital

gains and losses which are not included in the postwar income distribution series. For a description of

the adjustments, see Selma F. Goldsmith, "Relation

of Census Income Distribution Statistics to Other

Income Data," in An Appraisal of the 1950 Census

Income Data, Studies in Income and Wealth, Vol.

23, Princeton University Press for National Bureau

of Economic Research, 1958.

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FAMILY INCOME AND BUYING POWER 45

Table 6.—Distribution of Family Personal

Income Among Fifths of Consumer Units,

1947 and 1956

Fifths of

consumer

units

Lowest

2

3

4

Highest--..

Total

Top 5 percent

1947

Income range

Under $1,730--.

$1,730 to $2,800..

$2,800 to $3,830..

$3,830 to $5,470. .

$5,470 and over

$9,560 and over. .

Pe r

cent

of

family

personal

income

5.0

11.0

16.0

22.0

46.0

100.0

20.9

1956

Income range

Under $2,510...

$2,510 to $4,120..

$4,120 to $5,660. .

$5, 660 to $7,790. .

$7,790 and over

$13,490 and over.

Percent

of

famiiy

personal

income

5.0

11.3

16.5

22.3

44 9

100.0

20.1

over this period, from 54 percent in 1929

to 45 percent in 1956. The decrease reflected the experience of the top 5 percent

of consumer units. In absolute terms, of

course, the income of the highest fifth rose

along with that of other income groups.

The magnitude of the market shifts implied by these changes is brought out more

clearly if we compare consumer purchasing

power as it was actually distributed in 1956

with the distribution that would have prevailed had the 1929 relative patterns been

in force. In 1956, the income of the top

5 percent of consumer units—those earning $13,500 and more—accounted for $63

billion. Had 1929 patterns prevailed, the

income of this group would have aggregated about $30 billion more. About $12

billion of this difference accrued to consumer units comprising the lowest 40 percent of the population—those with incomes

below $4,100. The remaining $18 billion

was received by the next 40 percent.

Increase in Middle Incomes

Since 1929 there has occurred a substantial increase in the real purchasing power

of incomes. Average family income (in

Family personal income

in 1957 dollars (before

income taxes)

Under $2,000

$2,000-$3,999

$4,000-$5,999..._

$6,000-$7,999

$8,000-$9,999

$10,000 and over

Total

Number of

families and

unattached

individuals

(millions)

1929

12.4

14.0

5.1

1.7

1.2

1.7

36.1

1957

7.3

12.1

13.6

9.6

4.8

6.1

53.5

Total family

personal income in 1957

dollars (billions

of dollars)

1929

13.4

40.8

24.6

11.3

10.2

41.5

141.8

1957

8.5

36.9

67.4

66.3

42.6

106.5

328.2

terms of 1957 dollars) has risen from

$3,940 in 1929 to $6,130 in 1957. This represented an increase of more than one-half

in real before-tax income; for real aftertax income the rise was 40 precent. The

corresponding average annual growth

rates were V/2 percent and 1*4 percent,

respectively.

This rise in real income, supplemented

by the changes in the relative position of

the various income groups that have just

been summarized, has led to a very pronounced increase in the share of the total

consumer market that consists of middle

income families.

If—somewhat arbitrarily—we define this

market as embracing consumer units that

earned between $4,000 and $10,000 in

terms of recent prices, we find in 1957 approximately 28 million consumer units in

this range, whose incomes amounted to

$176 billion. They accounted for about

one-half of the number of families and

also of the total income. In 1929, by contrast, about 8 million families—only onefifth of the total—were correspondingly located on the real income scale. Their

incomes (in terms of 1957 prices) amounted to $46 billion, or one-third of the total.

Putting the comparison in somewhat

different terms, the number of middle income families, as defined here, was 3 ^

times as large in 1957 as in 1929, whereas

the total number of families in the population increased by only 50 percent. The aggregate income of this group also increased

relatively much more than total consumer

income.

Factors in Market Shift

The causes of this shift in the structure

of consumer markets have not yet been fully

analyzed. Growth in national productivity,

which was the major factor underlying the

increase in real income and purchasing

power, has been discussed in an earlier

chapter. The circumstances responsible for

the shift in relative incomes are less easily

distinguished. However, a few of them

stand out fairly clearly.

The accompanying tabulation shows for

1929 and for the average of the postwar

years, 1947-57, the percentage distribution of family personal income by types of

income. The major feature of the table is

the relative decrease in dividends, rental

income, and interest income on the one

hand, and the increase in wages and salaries

and transfer payments on the other. Inasmuch as the former types of income account

for a relatively large proportion of the total

income receipts of upper income groups,

and the latter for those of lower and middle

income groups (see discussion of income

source patterns), the kind of change indicated by the table may be expected to

account for at least part of the shift in the

size distribution of consumer incomes and

purchasing power that has been reviewed.

Fig. 23

Changes in Family Income Distribution

There was a marked upward shift of family incomes from 1947 to 1957

Million Units

10

^^s^^K^vTvrv ^ ^ *

$2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000

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46 THE ECONOMY VIEWED THROUGH THE NATIONAL INCOME ACCOUNTS

Many complex factors were in turn responsible for the change in the composition

of personal income by income type. Higher

corporate taxes and earnings retention

seem to be the most important factors accounting for the reduced share of dividend

disbursements. Rent control and monetary

policies may have been responsible in part

for reducing the relative importance of

rental and interest incomes, respectively.

Income type

Wages and salaries and other labor

income - _-

Transfer payments. __ _._

Proprietors' income:

Farm __-.____ _.

Nonfarm

Dividends _ _ _

Personal interest income

Rental income

Total family personal income.

Percent distribution

1929

59.7

1.6

7.1

10.4

6.9

8.2

6.1

100.0

1947-57

average

66.7

5.3

5.7

10.3

3.7

4.7

3.6

100.0

The increase in the share of transfer payments reflects the establishment and expansion of social security programs and also

the growth of pension and other payments

to veterans. The importance of wages and

salaries in the income total was bolstered

by the rise in the compensation of government employees accompanying the expanded level of government operations

which characterized the postwar period as

compared with prewar.

Quite apart from these factors which affected the size distribution of consumer

income by changing the composition of income by type, there appear to have been

others that affected it by reducing the dispersion of individual types of income. The

clearest evidence in this respect refers to

the important wage and salary component

which accounts for about two-thirds of the

family income total.

Based on wage and salary data collected

for detailed occupation and industry

groups in the last two Decennial Population Censuses, it has been found that three

major developments have contributed to

a narrowing of income differentials for

wage and salary earners between 1939 and

1949: (a) Decreases in relative income dispersion for men within practically all of the

more than one hundred occupations and

industries that were studied; (b) relatively

greater gains in median wage and salary

income for low-paid than for high-paid occupations and industries; and (c) an

increase in the proportion of workers classified in occupations with comparatively

little income dispersion.2

Although the interrelationships between

the size distributions of individual types

of income and the distribution of total

family income are complex, it can be expected that a reducton of wage and salary

differentials such as the one observed

would be reflected in a reduction in income

dispersion among families.

Similar data are not available for years

other than 1939 and 1949. However, there

is evidence that the reduction in wage and

salary differentials holds also when the

postwar decade as a whole is compared

2. Herman P. Miller, Income of the American

People, New York, 1955, and "Changes in the Industrial Distribution of Wages in the United States,

1939-1949," in An Appraisal of the 1950 Census

Income Data, Studies in Income and Wealthy Vol.

23, Princeton University Press for National Bureau

of Economic Research, 1958.

with 1929. An analysis of the average annual earnings of employees, which are

available in considerable industry detail on

a yearly basis for the period 1929 to date,

indicates that the dispersion in these earnings was substantially smaller during the

entire postwar decade than in the prewar

period, most of the reduction having apparently occurred within the war years.

This reduction in industry wage and salary

differentials points to a simultaneous reduction in dispersion in the size distribution of wage and salary earnings, and thus

broadens and extends the prewar-postwar

wage comparison that has been made on

the basis of the Decennial Census data.

Another development that is relevant to

the subject matter is the changing role of

the farm population in the economy, which

has been discussed in earlier chapters of this

volume. The number of farm operator

families has decreased substantially over

the period since 1929, and the incomes of

these families—including off-farm earnings—have risen on the average somewhat

more than those of the nonfarm group.

Given the fact that average farm family

incomes are much below those of nonfarm

families, both of these developments are

likely to have made a contribution—though

not a substantial one—to the reduction in

relative dispersion of family incomes.

Table 7.—Distribution of Nonfarm Families, Farm Operator Families, and Unattached

Individuals, by Income Level, 1956

Family personal income

(before income taxes)

Under $1,000

$l,000-$l,999__-

$2,000-$2,999...

$3,000-$3,999...

$4,000-$4,999_-_

$5,000-$5,999.-_

$6,000-$7,499_._

$7,50O-$9,999...

$10,000-$14,999.

$15,000 and ove;

Total....

Number of consumer units (thousands)

Total

2,688

4,954

5,871

6,784

6,941

6,540

7,416

6,042

3,545

2,019

52,800

Nonfarm

families

433

1,663

2,891

4,523

5,554

5,704

6,806

5,632

3,307

1,873

38,386

Farm operator

families

462

1,035

939

752

538

390

347

251

160

90

4,964

Unattached

individuals

1,794

2,255

2,041

1,509

849

446

263

159

78

56

9,450

Percent distribution

Total

5.1

9.4

11.1

12.9

13.2

12.4

14.0

11.4

6.7

3.8

100.0

Nonfarm

families

1.1

4.3

7.5

11.8

14.5

14.9

17.7

14.7

4.9

100.0

Farm operator

families

9.3

20.9

18.9

15.1

10.9

7V8

7.0

5.1

3.2

1.8

100.0

Unattached

individuals

19.0

23.8

21.6

16.0

9.0

4.7

2.8

1.7

100.0

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DEVELOPMENT OF THE NATIONAL

INCOME MEASURES

4. Progress in Past

Quarter Century

The present report incorporates the new

material on the national income and output of the United States economy which

the Office of Business Economics has developed in recent years. In a broader sense,

however, the report is founded upon work

which we have carried on progressively

over the last quarter of a century.

Study of the national income by the

Department of Commerce was initiated at

a time when the country was in a major

depression and there was urgent need to

understand and to improve the functioning of the economy. The work was

undertaken in 1932 in response to Senate

Resolution 220 of the 72d Congress, which

directed the Secretary of Commerce to prepare a report including "estimates of the

portions of the national income originating

from agriculture, manufacturing, mining,

transportation, and other gainful industries

and occupations, and estimates of the distribution of the national income in the

form of wages, rents3 royalties, dividends,

profits, and other types of payments."

The first report, covering the years

1929-32, was issued early in 1934 as

Senate Document No. 124 of the 73d Congress, and the estimates were carried forward regularly in succeeding years.

In 1938, we provided a major tool for

current business analysis in the form of

monthly estimates of income payments to

individuals. These estimates were the predecessor of our present personal income

series, the most comprehensive measure of

economic activity available on a monthly

basis.

A year later annual distributions of income by States were published, to furnish

market, guides and measures of regional

trends in business.

World War II gave a major impetus to

national income work, because basic policy relating to economic mobilization required tools for evaluating the Nation's

total production potential and for determining the portions of output that could

be devoted to war use. Measures of the

gross national product, by type of product

and major market outlet, were prepared

to provide the factual background for such

calculations.

With a large share of rising production

diverted to military purposes, incomes increased faster than civilian supplies during the war, and steps had to be taken to

keep the resulting inflationary tendencies

in check. The new product series were

related to the previously developed information on income flows, to make possible

a quantitative assessment of inflationary

forces, and to facilitate the establishment

of financial and other policies adequate to

deal with them.

In this manner national income data

were expanded and transformed to yield

a comprehensive statistical picture of the

national economy in terms of interrelated

product and income flows. This general

framework for organizing economic information continued to be indispensable to the

formulation and execution of governmental

policies to deal with the domestic and international economic problems of the postwar period. The statistics also became a

major tool of economic analysis in the

hands of the business community and of

other private groups whose contribution to

a decade of economic progress has been

reviewed in earlier chapters.

The principal steps which OBE has taken to develop national income information

to meet the requirements of economic

analysis during the postwar years will be

set forth briefly.

New View of the Economy

In 1947, the first National Income supplement to the SURVEY OF CURRENT

BUSINESS was published, representing a

landmark in the development of national

income work. The report carried out four

major objectives: (1) A recasting of

United States national income and product statistics into the framework of a comprehensive national economic accounting

system designed to provide an integrated

overall view of the economic structure and

process; (2) the introduction of a number

of changes in the definitions of the several

income and product aggregates; (3) a

basic improvement of the statistical series

back to 1929; and (4) the provision of

much greater detail on the composition of

the income and product flows.

Thus, at the beginning of the postwar

period OBE provided a set of basic data

unique in their systematic and detailed

description of economic life in terms of the

production, distribution, and use of national output. The series first published in

the 1947 supplement have since been carried forward in OBE's monthly SURVEY OF

CURRENT BUSINESS on a regular schedule

which has included publication of detailed

annual reports each July and quarterly

summaries on a current basis.

Need Met for Measures of

Real Output

Initially, all the estimates were expressed in terms of current dollars only.

There remained an obvious need for a

measure of the real volume of national

output and its components. Suc h a

measure was necessary to supplement the

current-dollar figures in the study of inflationary and deflationary processes, and

also to assess trends in national productivity and standards of living.

To fill this gap in economic information,

estimates of constant-dollar gross national

product were published in 1951. The new

series covered on an annual basis the

period back to 1929, with the total GNP

broken down to show separately the broad

categories of consumption, investment,

and government purchases.

When the new income and product series were issued in 1947, it was possible to

provide only a brief explanation of definitions, and a description of statistical sources

and methods was totally lacking. At that

time we promised a more extensive report

47

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48 DEVELOPMENT OF THE NATIONAL INCOME MEASURES

which would describe fully the official national income and product series.

Presentation of Concepts

and Methods

This obligation was discharged in 1951

with the publication of the second National

Income supplement. This volume marked

a further major development in United

States national income work, for the provision of full explanations of the conceptual and statistical bases of the official

income and product accounts was a task

of first-order importance that met a widespread need among users of the statistics. Also contained in the report was a

summary view of the functioning of the

United States economy as seen through

the medium of the accounts.

The discussion of statistical methodology was conducted with candor. Meaningful mathematical measures of reliability

cannot be calculated for national income

statistics; only a frank evaluation of the

sources and methods underlying them can

provide the understanding which is needed

for their effective use in economic analysis.

Another important purpose in focusing

on the quality of the statistics was to provide guidance and impetus to the Federal

program of primary data collection.

A major task of the next few years was

the incorporation into the income and

product accounts of the statistical data collected by the postwar industrial and population censuses during the 1947-50 period.

For major portions of the product flow,

these censuses provided the first benchmark data since 1939.

Revisions of the estimates based on this

material, as well as other statistical information which had become available since

1947, were presented in the 1954 National

Income supplement. This report also revised and brought up to date the portions

of the 1951 supplement dealing with definitions and concepts, and with statistical

methodology.

Discussion of the latter subject was expanded in particular, to take into account

the results of the statistical revisions published in the 1954 report. The detailed description of sources and methods was rewritten in the light of new data sources and

procedures; and the revisions were analyzed for the light they shed on the reliability of the estimating techniques used

pending the availability of census benchmark data.

It appeared that these techniques had

produced reliable preliminary measures of

national output and of its broad components, but that revisions for some of the

more detailed breakdowns had been substantial. These revisions, it was noted in

the foreword to the report, "underscore

the need which we have repeatedly stressed

for further development of the primary

data sources on which the national income

estimates are based."

The 1954 National Income supplement

is a basic reference volume on the United

States national income accounts. Therefore, it required only updating in the present volume, which is of a different kind.

The 1954 Supplement is not superseded

by the present report. It continues to be

the basic source of estimates for the prewar

and war periods; for the discussion of

definitions and concepts, which has not

been repeated here; and also for the description of sources and methods, which in

the present report is confined to an explanation and evaluation of the statistical revisions which have been introduced into

the estimates.

Personal Income for

Market Analysis

In addition to the several National Income supplements, two major projects in

the field of personal income measurement

have served to extend materially the scope

and value of the official national income

work. These projects, both of which represented large-scale undertakings extending

over a period of years, yielded the widely

used Office of Business Economics series

on personal income by size classes and by

States. Both of these established new

sources of information on the country's

economic structure in general and on the

composition of consumer markets in particular.

The estimates of personal income by

size classes were established in 1953, when

they were reported, described, and analyzed

in a special supplement to the SURVEY OF

CURRENT BUSINESS.1 These estimates, covering selected years since 1944, provided

size distributions of before-tax incomes for

nonfarm families, farm families, and single

consumers, and size distributions of aftertax incomes for all consumer units combined. The series have since been kept up

to date in regular annual reports in the

SURVEY.

They are based on two major sources of

information—consolidated tabulations of

(1) individual income tax returns by the

Internal Revenue Service, and (2) sample

field surveys conducted bv the Bureau of

the Census and by the Survey Research

Center of the University of Michigan for

the Federal Reserve Board. Involved in

the derivation of the estimates is the complex task of integrating these data sources

and of adjusting the results to controlling

totals based on the OBE personal income

estimates.

The State series on personal income

covers all years since 1929. This annual

economic record consists of both overall

figures on total and per capita personal income and the detailed sources of income by

type and by industry.

The complete set of estimates was presented in a series of 80 tables in a SURVEY

supplement published in 1956.2 This report also provided detailed explanations

of the concept, statistical derivation, and

reliability of the personal income measures,

together with an analysis of the results of

regional economic development, with particular focus on long-term trends.

The Personal Income supplement incorporated a number of improvements over

the "State income payments" work which

had been initiated in 1939. The new State

series, tied in with the conceptually improved personal income measure included

in the national income and product accounts, provided essential information in

much greater detail, fully documented and

explained.

The report also featured a new purchasing power guide—the first official estimates

of disposable personal income by States.

Other Developmental Work

The development and improvement of

the national income accounts which occurred during the postwar period is most

clearly apparent in the five major publications discussed above. However, this

backward look over the past decade would

not be complete without reference to portions of our national income work that are

not directly reflected in these reports.

1. Speedups in the inflow of primary

data combined with long experience in

estimating work have enabled OBE to present a comprehensive and systematic view

of the Nation's economic activity on an

exceedingly prompt time schedule. We

make available monthly estimates of personal income 2 weeks after the end of the

month, and quarterly summaries of the

entire set of the national income and product accounts 6 weeks after the close of the

reference period. This information is basic

for the analysis of current economic developments, including our monthly and quarterly reviews of business conditions in the

SURVEY OF CURRENT BUSINESS. Its widespread use is reflected in the increasingly

high order of economic appraisals now

available in the business and daily press.

2. A number of articles appearing in

the SURVEY have contributed to developmental research in the national income

1. Income Distribution in the United States. U. S.

Government Printing Office, Washington. 1953. 65

cents.

2. Charles P. Schwartz and Robert E. Graham. Jr..

Personal Income by States Since 1929, U. S. Government Printing Office, Washington. 1956, $1.50.

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PROGRESS IN PAST QUARTER CENTURY 4 9

field. Examples are the several studies of

capital formation, consumption, and

stocks; the cross-classification of GNP by

type of output and purchaser group; and

the measurement and analysis of gross

product originating in farming. Our regular investigations into the sources and uses

of funds by corporations may also be mentioned in this connection, as well as the

Plant and Equipment Survey which OBE

conducts jointly with the Securities and

Exchange Commission. Throughout the

past decade this survey has furnished a key

economic indicator, in the form of data

on the anticipated and actual capital outlays by business—quarterly as well as annual, and broken down by industry groups.

3. The Office of Business Economics

has maintained an active role in international developments in the field of national

income. Prior to the publication of our estimates on a new and revised basis in 1947,

we held a series of meetings in Washington

with technicians from the United Kingdom and Canada in order to exchange

views and to promote international comparability of national income statistics.

Subsequently, the National Income Division has aided United Nations and OEEC

technical committees working toward a

standard national accounting system designed to have international applicability.3

In addition to cooperating with international organizations for the improvement of national income concepts and

measurement, the Office of Business Eco3. Measurement of National Income and the Construction of Social Accounts, Studies and Reports

on Statistical Methods, No. 7, United Nations. Geneva, 1947; A Standardised System of National

Accounts, Organization for European Economic Cooperation, Paris, 1952 ; A System of National Accounts and Supporting Tables, Studies in Methods

2, United Nations, New York, 1953.

nomics has provided help to a great many

countries where income research was less

highly developed. In the past 10 years, the

training courses for foreign personnel

which are conducted by OBE's National

Income Division and Balance of Payments

Division have graduated about 175 technicians from more than 50 different

countries.

Reflecting the initial emphasis of the

program, nearly one-half of these technicians have come from Latin America. In

the more recent period, participation has

been quite diversified, extending to all

major regions of the free world.

4. Our assistance has also been made

available to public and private groups concerned with the level and composition of

income locally. Cooperation has been given

to various organizations, mostly university

bureaus of business and economic research,

engaged in the estimation of income by

counties. At the request of the Territory of

Hawaii, we conducted a study which established a Territorial income series consistent with our regular State estimates,

and which, more generally, set forth a systematic approach to area income measurement.4

The Office of Business Economics recently prepared an economic base survey

for the U. S. Army Corps of Engineers as

part of the Corps' study of the water resource development of the Delaware River

Basin. Central to this survey was a set of

specially constructed estimates of personal

income for the Delaware River Service

Area and its principal subdivisions. One of

the major ends served by the study was to

furnish a basic guide to all those interested

4. See Charles F. Schwartz, Income of Hawaii,

U. S. Government Printing Office, Washington, 1953.

in the methodology required for calculating income flows on a smaller-than-State

basis.

Another undertaking of significance to

local income research was our part in organizing a conference on regional income

studies held at Duke University in the

spring of 1955.5

5. As the national income and product

accounts have grown in use and become

firmly established as tools of economic

analysis during the postwar years, their

underlying concepts have been subjected

to increasing scrutiny and discussion

among economists. OBE has taken an

active part in such evaluations, contributing a number of papers to this literature.

The autumn 1955 meetings of the Conference on Research in Income and

Wealth, sponsored by the National Bureau

of Economic Research, provide a major

case in point. These were devoted entirely

to an appraisal of OBE's work on the national income accounts. We presented a

comprehensive paper before this leading

forum, dealing with the major conceptual

problems of economic accounting and the

general lines along which future work

might proceed. We also responded in detail to the other papers that were read.6

Having reviewed the development and

scope of OBE's past work in the national

income field, we turn now to a discussion

of the new statistical tools that are introduced in this volume.

5. See Regional Income, Studies in Income and

Wealth, Vol. 21, Princeton University Press for

National Bureau of Economic Research, 1957.

6. A Critique of the United States Income and

Product Accounts, Studies in Income and Wealth,

Vol. 22. Princeton University Press for National

Bureau of Economic Research, 1958.

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DEVELOPMENT OF THE NATIONAL

INCOME MEASURES

5. What's New in

the Present Volume

This chapter discusses the new information on United States income and output

which is incorporated in the present report.

A summary view, setting forth highlights of

the new material, is given below. This is

followed by more detailed comments explaining the nature and significance of the

new tables in the Statistical Section of the

report, and thus furnishing a guide to their

use in economic analysis.

SUMMARY OF

NEW DATA

The summary 6-account system previously used has been redesigned and simplified to bring out measures and relationships

for current economic analysis. The set of

supporting tables has been greatly expanded, and has been organized around

the new 5-account system.

Increased emphasis has been given to

real-volume measures as supplements to

the usual current-dollar series. Quarterly

estimates of gross national product in dollars of constant purchasing power, presented here for the first time, are an outstanding illustration.

Several other new bodies of data on the

GNP have been incorporated. One of these

is a classification of output into durable

goods, nondurable goods, services, and construction. Another is a breakdown by the

legal form in which the producing entities

are organized.

Consumer income is more fully covered

in the new set of tables. In particular,

OBE's income-size and regional data have

been summarized in this volume.

Increased provision has been made for

the analysis of governmental activities. Included, for example, are distributions of

public expenditures, separately for Federal

and for State and local governments, by

type of governmental service rendered. At

50

the same time, tables relating the income

and product measures to data in the United

States Budget and to summaries of the

fiscal statistics of State and local governments provide information facilitating the

use of all these materials together in consistent fashion.

The presentation of the economic transactions of the United States with other

nations has been expanded and clarified,

and tied into the official statistics of the

balance of payments which OBE compiles.

Assembled in this report also are a number of tables which will serve as buildingblocks for OBE's study of saving and investment flows (see below). In addition to

such widely used tabulations as our sources

and uses of corporate funds, this group of

materials includes an analysis of the formation, consumption, and stocks of capital

goods in manufacturing, using various alternative valuation bases for these items.

Finally, a new framework for current reporting is embodied in the quarterly tables.

It is introduced at various points in the

Statistical Section of the report, and deserves a special word at this time.

Quarterly Tables Expanded

The previous set of quarterly tables consisted of distributions of GNP by major

components, national income by type of income, personal income by its disposition

among taxes, consumption, and saving, and

a reconciliation of the three major aggregates.

In the present version, perhaps the most

notable new element is the supplementation of the quarterly current-dollar GNP

breakdown by a corresponding table in

dollars of constant purchasing power. To

the quarterly information previously furnished on national income have been added

summary breakdowns by industry division

and by legal form of organization, the latter

showing separately the amounts of income

of each type originating in corporate business. Closely related to these is a distribution of seasonally adjusted corporate profits

by four broad industry groups.

None of the quarterly breakdowns of national income can be completed for a current quarter, of course, until the data on

corporate profits are available. Because of

delays in the reporting of the basic information, it has not yet become possible to

place the estimation of corporate profits on

the same schedule as that of other income

and product items. The tabulation of personal income and its disposition, however,

has been developed into an improved

framework for the reporting of other income developments as soon as they become

known.

The impact of fluctuations in consumer

income on spending and saving is of course

modified by changes in personal taxes; this

relationship continues to be shown on a

quarterly basis.

Quarterly materials on other major parts

of the economy have been elaborated in the

new system of tables. For the Federal Government and also for State and local governments, data are provided on receipts,

expenditures, and surplus or deficit. For

international transactions, the measure of

the net foreign balance is shown in the

context of the latest available estimates of

the gross flows of exports and imports as

well as net international transfers. Finally,

the saving and investment of the Nation

are given in conspectus.

In short, the system of quarterly reporting has been expanded to provide an improved summary of current economic developments. This has been accomplished

by means of a set of tables paralleling as

closely as possible the new 5-account system (described below) that ties together

the annual estimates. However, because of

differences in the timing of the basic data

flows, modifications in the quarterly presentation have been made to facilitate

prompt reporting of key figures. Also, information has been added that is not

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WHAT'S NEW IN THE PRESENT VOLUME 51

brought out by the 5-account system but is

nevertheless important for current economic analyis—notably data on constantdollar gross national product and on the

origins of the national income by industry

and by legal form of organization.

THE 5-ACCOUNT

SYSTEM

The new system of summary accounts is

being adopted after considerable discussion in the literature of economic accounting. As compared with the one presented

in the 1954 and earlier National Income

supplements, it has been simplified by the

omission of detail relating to the institutional origins of production, in order to

bring out more clearly the types of economic flows and relationships that are of

key importance for current business analysis.

The new summary accounting system

appears at the beginning of the Statistical

Section. The first account—that of the

National Income and Product—presents

the output of the Nation both in terms of

final product flows and in terms of the

basic income types generated in its production. The next two accounts deal respectively with Personal Income and Outlay

and with Government Receipts and Expenditures. In conjunction with the first

account, these show the manner in which

basic production incomes are modified by

transfers and taxes and become available

for disposal by consumers and government.

They also show current purchases of output

by these two institutional groups—personal

consumption in the one case and government purchases of goods and services in

the other.

A fourth statement, the Foreign Account, shows purchases of United States

output by foreign nations; these are seen

in the context of our purchases of foreign

output and of current income transfers.

The fifth and final account, the Gross

Saving and Investment Account, shows, on

the one hand, the parts of income not yet

accounted for—namely, incomes saved or

retained in various parts of the economy,

rather than spent on the current use of

output—and, on the other, the several

forms of investment in which these current

surpluses are embodied, as seen from the

standpoint of the Nation as a whole.

In the prior 6-account setup, the National Income and Product Account was

elaborated by information showing the institutional origins of the gross national

product. This included a separate production account for business enterprises and

similar production statements embodied

on the accounts for other institutional

groups (persons and government) and

also for the rest of the world.

In the new presentation, the more significant of these underlying details are still

carried in the regular statistical tables, but

all of them have been eliminated from the

summary accounts. The business account

is omitted in its entirety from the new system ; and the income and product subtotals

are dropped from the other current accounts, along with the detailed entries

formerly included as necessary to support

these.

With the removal of these items, the

number of entries previously carried in the

summary account tables has been substantially reduced. The broad measures

found analytically most useful now stand

out more clearly in their various interrelationships.

Something has of course been sacrificed

to this end. The institutional structure of

productive activity, stressed in the original

set of accounts, is not shown in the new

form. Again, the business account eliminated here is useful as a conceptual bridge

relating national production and its accounting to their business analogues. It is

hoped, however, that the gains in simplicity, in aptness for other principal uses of

the accounts, and perhaps also in international comparability, outweigh these

costs.

The 5-account system and the more detailed 6-account system from which it is

condensed are of course not the only summary forms into which national income

statistics can be cast to provide a bird's-eye

view of the entire economy. Among the

many possible alternatives, one has been

reproduced in table VII-1 of the Statistical

Section because it has proved particularly

convenient in broad economic analysis.

The essence of this statement is its presentation of the gross national product as

equal at once to the purchases of consumers, businesses, government, and foreign

nations and also to the disposable receipts

of these groups. The purchase breakdown

of the GNP is the conventional one; the

fact that the disposable receipts of the

economic groups listed also add up to the

GNP aggregate reflects basically the exhaustive allocation of total receipts from

the sale of output among the owners of

the economic resources used in production.

Transfers and taxes modify the initial allocation to yield the disposable incomes or

receipts of the various economic entities,

but the sum total available for allocation

is not affected by this process of redistribution.

The changes in accounting design introduced in the present volume do not represent our final word on the subject. For

example, there remains for consideration

a variety of unsolved problems in the classification of transactions within the accounts. It seems likely, moreover, that there

will be some scope for further improvement

in the mutual relationships between the

account items and the supporting tables.

Similarly, the former will probably require

modification in order to serve with maximum effectiveness as a framework for integrating such developmental projects as

those outlined in the next chapter—which

of course could not be taken into consideration in any detail in drawing up the

present set of accounts.

These projects include substantial elaboration of the accounts for persons and

government, a detailed tracing of the

process of saving and investment, and the

provision of additional information on the

industrial sources of the national output

in current and constant dollars. While unlikely to affect the fundamental structure

of the 5-account system, such projects

would be fairly certain to call for modifications in it.

Summary accounts—whatever particular

form they may take—should not be regarded as substitutes for the supporting

tables on the various income and product

flows. They condense the information contained in these tables and place it in the

context of the economic process as a whole.

But once this focus has been established,

most types of economic analysis must proceed beyond the accounts to utilize the

wealth of factual information shown by

the statistical tables.

We turn next to a consideration of these

supporting tables. They have been rearranged and grouped in the present report

in accordance with the structure of the

new set of accounts, and approximately

doubled in number.

NATIONAL PRODUCT AND

INCOME

The Statistical Section contains a set of

18 annual and quarterly tables detailing

the composition of national income and

gross national product. The following discussion will focus on the material that is

new.

Annual Real GNP

The annual constant-dollar GNP series

hitherto published have been thoroughly

reworked in this volume. The composite

price indexes have been reweighted to take

into account the results of the 1954 censuses, as well as the revisions in the BLS

Consumer Price Index beginning with

1953. The latter have extended the areas

of consumption to which this index is applicable and correspondingly reduced

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52 DEVELOPMENT OF THE NATIONAL INCOME MEASURES

those for which the price series of the Agricultural Marketing Service of the Department of Agriculture are used. Finally, all

constant-dollar series in the Statistical

Section have been expressed in terms of

1954 dollars instead of the 1947 dollars

previously employed.

Quarterly Real GNP

Reference has already been made to the

new quarterly measures of real gross national product. These are presented (table

1-5) in the same product breakdown as

the current-dollar quarterly figures.

These real-volume estimates have been

among the most-needed extensions of

United States national income statistics.

This is partly because of their importance

in indicating promptly the pace and focal

points of inflationary or deflationary

changes. More broadly, it is due to the key

role of the Nation's total production volume in determining employment on the

one hand and the scale of living on the

other. Figure 8 in Chapter 1 shows the

course of real production over the postwar

period—compared with that of currentdollar GNP—as revealed by the new quarterly series.

The quarterly constant-dollar estimates

are derived by dividing seasonally adjusted

current-dollar GNP components by appropriate price indexes; the elimination of

seasonal variations from the latter has constituted a special problem requiring careful attention. The deflation procedure has

been carried out separately for about one

hundred product groups, involving the

combination of several times as many

price indexes drawn from Bureau of Labor

Statistics and other sources. The results so

obtained have been adjusted to annual constant-dollar figures that are prepared in an

even finer breakdown.

In view of the fact that the quarterly

real GNP is a new series which will be employed widely, it is important to draw the

attention of users to its principal characteristics.

First, undue significance should not be

attached to small, irregular changes shown

by these quarterly constant-dollar measures

of total GNP and its main components.

While inevitable imprecisions in the basic

data preclude meaningful interpretations

of these estimates to the last decimal, as it

were, they can be taken as valid indicators

of real volume changes which are of significant magnitude or which fall into

pattern, either in terms of this body of data

itself or when studied in relation to other

economic variables.

For example, for the several quarters preceding the business downturn in the

autumn of 1957, the estimates of total real

GNP show small changes to which no precise significance should be accorded. On

the other hand, when the estimates are

rightly interpreted they convey the important fact that total real output was approximately stable during this prerecession

interval when current-dollar output was

still rising.

A second, closely related, point is that

these new real volume data and the associated implicit price indexes are not sufficiently accurate for any exact assessment

of the relative contributions of the price

and volume factors to the quarter-toquarter changes in the market value of

gross national product.

The price and current-dollar value data

•are statistically independent. The price

data are not ordinarily subject to substantial revisions even though, as will be noted

presently, they are not entirely satisfactory

for the deflation of GNP. In practice,

therefore, statistical revisions in the current-dollar GNP series tend to be reflected

very largely in the real volume measure.

Suppose, for instance, that the initial estimates for a given quarter show a rise from

$400 billion to $404 billion, or one percent,

in the annual rate of current-dollar GNP

and an increase of one-half percent in overall prices applicable to the GNP. Price and

real volume thus appear of equal importance in accounting: for the change in current-dollar GNP. If, subsequently, a downward revision of $1 billion, or one-fourth

of one percent, occurs in the GNP, this will

show up almost entirely in the real volume

change, and the indicated importance of

this change will decline from one-half to

one-third.

A third, perhaps even stronger, caveat

should be entered with respect to any attempt to use these quarterly constantdollar estimates in productivity analysis.

The margin of error attributable to the

output estimates, when combined with that

in the available man-hour data, renders

judgment on this score extremely hazardous. Even the preliminary annual estimates

of real output, which are customarily published each February in the SURVEY, have

supported only the most tentative comments in this connection.

The major reasons why constant-dollar

estimates of GNP, valuable as they are, are

subject to certain particular limitations

have been set forth in the 1954 National

Income supplement, in connection with the

annual series. There, we called attention to

the shortcomings of price deflation. These

stem from the lack of price information directly applicable to many components of

the current-dollar product flow; from the

fact that, generally speaking, available

price information cannot take adequte account of premiums, discounts, and bargain

sales; and from even more basic problems

encountered in pricing items subject to significant quality change, or whose physical

units are not clearly definable for other

reasons.

The quarterly constant-dollar figures are

affected, in different degrees, by these same

difficulties. On balance, the price information available on a quarterly basis—particularly for the most current period—is

somewhat weaker than that underlying the

annual estimates.

In addition, certain special problems are

encountered in the estimation of quarterly

current-dollar GNP, from which the constant-dollar measure is derived. These are

discussed in Chapter 8, which contains a

section dealing with the methodology employed in estimating the current-dollar income and product series on a less-thanannual basis.

Goods, Services, and

Construction

The usual classification of gross national

product focuses on purchaser groups, and

also provides a great deal of information on

the product composition of final output.

The latter type of breakdown, however, is

not carried through systematically for all

buyer groups.

In the present volume, a new set of tables

shows type-of-product information on a

consistent basis for the GNP as a whole.

Current-dollar and real output are classified into durable goods, nondurable goods,

services, and construction; and production

in each of the two categories of goods is

shown also as the sum of final sales and inventory change.1

 A cross-classification of

type of product by type of buyer is also

given.2

These new tables will be useful for many

purposes. They will help, for instance, in

the analysis of problems in which the durability of output is a significant factor.

They will make it easier to trace the industrial impact of shifts in final demand. They

will permit a more refined analysis of inventory holdings in relation to output.

Again, they will enhance the usefulness of

the gross national product as a framework

within which other measures of physical

production, more restricted in scope but

affording valuable detail on various segments of the economy, may be interpreted.

One of the economic developments

which emerge more clearly in the light of

the new data is the rise in the importance

of durable goods relative to total GNP

over the past 30 years. This is shown in

Figure 24.

1. See tables 1-6 and 1-7.

2. See tables VII-5 through VII-7.

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WHAT'S NEW IN THE PRESENT VOLUME 53

The total national output of durables

and construction is an aggregate which has

been of wide interest, particularly in connection with studies of capital and of investment broadly defined. While purchases

of such output by consumers and public

bodies are not classified as investment in

the national income accounts, the new

tables provide users interested in such a

broad measure with the data needed to

calculate it.

Users familiar with the conventional

breakdown of gross national product will

have little difficulty in visualizing the content of the new one which has been added.

For durable goods, the chief components of

the new series are the familiar measures of

producers' durable equipment and of personal consumption expenditures for durables. To the sum of these are added special

estimates of such purchases by Federal,

State and local governments and of exports—less imports—of these goods. The

resulting total covers all sales to final users.

To convert it into an output measure, we

add an allowance for business inventory

change, as indicated by data on the holdings of durable-goods manufacturers and

distributors.

The aggregates for production and final

purchases of nondurables are derived by

a parallel method.

The total for final services represents

personal consumption expenditures in this

category, public purchases of services from

business and from government employees

(as measured by their compensation), and

net service exports.

The last of the four type-of-product

categories combines the private and public

components of new construction activity.

It represents the value of work put in place

during the year. No attempt has been made

in any of the tables in this volume to

break this portion of output between sales

of finished structures and changes in sellers' inventories.

Though carefully done, the special estimates required for the new type-of-product series are in general less reliable than

are the more familiar breakdowns of the

gross national product. For example, the

relative proportions of durables and of

nondurable goods involved in business inventory change can be measured only

roughly, since the basic data are classified

by line of trade and not by type of good

held in inventory. The estimates of government purchases of durables are also rough;

this point will receive further attention in

later chapters.

Production by Major Groups

There are a number of purposes which

require measurement of the gross product

originating in particular parts of the Nation's economy. Neither the trend of output nor its short-run fluctuations need be

the same for government as for business,

or for farmers as for nonfarm producers.

To the extent to which total GNP can be

broken down to distinguish the contributions of such different producer groups,

economic analysis can be made more realistic and more fruitful.

Accordingly, in the present volume we

have brought together OBE's work to date

Fig. 24

Durable Goods Output

Contributes Rising Share of Total

Percent

600

BASED UPON

CURRENT DOLLARS

1947 1957

on the current- and constant-dollar value

of gross product originating in farming

and nonfarm business and in certain nonbusiness groups. The general procedure has

been to prepare explicit estimates of production originating in government, households and institutions, the foreign sector,

and farming, and to deduct these from the

total GNP to obtain nonfarm business

gross product as a residual.

The current-dollar output of the three

•nonbusiness groups is measured by the

incomes originated by them. The contribution of farm business to the national

product has been estimated as the total

value of farm products less farmers' cost

purchases from nonfarm business (which

in the last analysis represent values originating off, rather than on, farms). The

resulting measure of output is in principle

equal to the sum of income derived from

farm production plus certain other charges,

mainly taxes and depreciation.

The constant-dollar measures are derived in the same general framework. The

real gross product of farming is estimated

by the separate deflation of product values

and cost purchases, each in considerable

detail. In contrast, the measures of the real

output of nonbusiness groups are based on

conventions necessary to meet certain special difficulties involved in the definition

and estimation of output originating in

these sectors. These conventions limit the

significance of the results.

The real output of government is measured in terms of deflated labor input,

without allowance for changes in productivity. Real income from foreign investment is obtained by deflating the currentdollar flows by composite price indexes that

measure changes in the purchasing power

of these flows in foreign trade transactions.

The labor component of the real product

of households and institutions reflects labor

input; the interest component traces the

purchasing power of this flow in consumer

markets.

Employed with due regard to the shortcomings which are apparent from the

methodological summary given above, the

new type-of-producer breakdowns of the

GNP should facilitate a more systematic

study of current-dollar and real output

patterns than has heretofore been feasible.

Both the farm-nonfarm breakdown and

that by legal form permit of such use. The

former3 shows that for several decades

gross product originating in nonfarm business has continued to rise substantially

faster than has product originated in farming. (See Figure 31 in Chapter 6.) The difference in rates of output growth has

stemmed not only from a lesser rate of expansion in the output of farm products as

such, but also from the fact that the substantial recorded increase in farm products

supplied has involved a larger farm use of

gasoline, chemical fertilizers, and other

nonfarm materials. The relatively more

limited rise shown in the measure of GNP

from agriculture than in total output of

farm products reflects the attribution of

the value contributed by these materials

to nonfarm rather than to farm producers

in the GNP measure.

The legal-form breakdown of nonfarm

gross product4 serves primarily to set aside

the productive contribution of government, private households, and the foreign

sector, so as to permit a closer examination

of business gross product. Many types of

economic analysis—for instance, those relating output to factor input—can focus

more sharply if they are conducted in this

3. Tables 1-15, 1-16, and VII-9 through VII-11.

4. Tables 1-12, 1-13, and 1-16.

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54 DEVELOPMENT OF THE NATIONAL INCOME MEASURES

more restricted framework. The estimates

of output of the nonbusiness groups may

also be used directly, in spite of their limitations, adding perspective to studies of

the institutional forms of production.

Historical Series

Important for trend analysis are time

series covering long periods. The present

volume extends back to 1909 the currentand constant-dollar measures of GNP, and

of the portions originating in general government, in farming, and in other types

of production (see Figure 25, based on

the country's economic statistics in that

earlier period—in respect both to the variety and to the reliability of the data

available.

Quarterly National Income

Reference has been made above to three

new quarterly tables on the national income: limited breakdowns of the total by

industry and legal form of origin, and of

corporate profits by industry.5 Such estimates have been used from time to time in

the SURVEY OF CURRENT BUSINESS, on a

semiannual basis, and have been found

Expansion in Major Segments of the

Gross National Product

Fig. 25

Billion 1957 Dollars (ratio scale)

600

400

200

100

80

60

40

20

10

8

6

Private Nonfarm GNP

\

I I l I I I I I I I I I I I l I I I l I I I I I 1 I I I I I I I I I I I l I I I 1 I I I I I I 1 1 I I

1905 10 15 20 25 30 35 40 45 50 55 60

table 1-16). The principal generalizations

as to long-term growth made in Chapter 1

are drawn from these figures.

It must be emphasized that the pre-1929

series should be used with particular awareness of their statistical limitations. They

incorporate a great deal of painstaking research, undertaken in the course of a long

succession of private and governmental

studies. Nevertheless, their quality necessarily reflects the less developed state of

very useful in tracing the effects of initial

changes in demand through the economic

system.

For instance, these data illuminated one

of the most striking features of the 1953-

54 business recession—the maintenance

of consumer income in the face of a decline in production and the income generated by it. The data showed that the

chief impact of the initial drop in final

demand was upon production in industries

in which the corporate form of organization predominated. They made clear also

that, with corporate payrolls only moderately down, the matching reduction in

income centered in corporate profits. Dividends were maintained, nevertheless, partly because a cut in taxes cushioned the

decline in earnings available for distribution. As a result, only about one-third of

the total decline in corporate production

and in income generated was reflected in

a reduction of disbursements to the consuming public. With incomes in noncorporate production up, transfer payments

expanding, and personal taxes cut, total

disposable consumer income available for

spending and saving held steady or actually

increased throughout the 1953-54 recession period.

Here again, note must be taken of statistical limitations in the estimates. Source

data available on a quarterly basis do not

approach in statistical adequacy those

which underlie the annual measures of

profits and other income shares. To minimize the resulting margins of error, the

industrial and other classifications involved

have been condensed.

PERSONAL INCOME AND

OUTLAY

The second group of statistical tables relates to personal income and its disposition.

Assembled here are summaries of OBE's

studies of the geographic and size distributions of income, as well as annual and

shorter-period estimates of the national totals for personal income and expenditure

and their components.

State and Size Distributions

Estimates of personal income—total and

per capita—are given by States and regions

for each year from 1929 on. Also provided

are supplementary measures, for selected

years, of disposable personal income which

allow for the differential effect of taxes on

the distribution of consumer purchasing

power.6

Underlying these summary tables is a

wealth of detailed information to be found

in the basic reports on personal income by

States.7 These reports show for each State

and region annual data since 1929 on the

composition of personal income by type,

with payrolls broken down in considerable

industry detail and proprietors' income distributed between farm and nonfarm. For

5. See tables 1-11, 1-14, and VI-10.

6. Tables II-8 through 11-10.

7. Charles F. Schwartz and Robert E. Graham,

Jr., op. ct., and latest annual report in the August

SUBVEY OF CURRENT BUSINESS.

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WHAT'S NEW IN THE PRESENT VOLUME 55

selected years, they likewise show for each

area the broad industrial sources of total

personal income and of civilian income received from employment (including selfemployment), as well as manufacturing

wage and salary disbursements by two-digit

industry groups.

Also appearing in the second part of the

Statistical Section are summaries of family

personal income distributed by income size.8

The tables show consumer units and their

income by dollar income brackets and by

quintiles arranged according to income size,

covering selected years from 1944 through

1956. Separate distributions by size of income are given for nonfarm families, farm

operators' families, and unattached individuals for the years 1953-56. (The 1956

data are shown in Figure 26.)

The income size tables, like those on the

geographic distribution of income, summarize a more detailed study of the subject. The basic reports on the income size

study9 include distributions by income

after Federal jncome taxes and a variety

of ancillary data developed in the course

of the study: e. g., money income excluding imputed items, and data on family

composition by broad income size groups.

While the most obvious use of these personal income measures is as indicators of

the geographic and size distributions of

consumer incomes, they have a broader

significance for economic understanding.

The State series provide the most comprehensive available measures of business activity in the various States and regions, as

well as detailed descriptions of their economic structures. The use of these series

as the framework for studies of regional

economic development illustrates their applications in fields other than marketing.

The size estimates likewise depict conditions of major economic significance.

The statistical foundations of the State

and size distributions are described in the

reports cited above. A word should perhaps be said here about how State personal income and family personal income

differ from the familiar overall national

total which is reported monthly.10

In definition, State personal income is

identical with the national series except in

one respect—that payments by the Federal

Government to its civilian and military

personnel stationed outside the continental

United States are excluded from the State

figures. Family personal income is likewise

8. Tables 11-11 through 11-13.

0. Income Distribution in the United States, U. S

Government Printing Office, Washington, 1953, and

latest annual article in the SURVEY OF CURRENT

BUSINESS.

10. Apart from the conceptual differences noted

here, it should be observed that the latest (July

1958) revisions in the national total have not all

been carried into the State and size distributions

shown in the Statistical Section of the present

volume.

adjusted in line with the common sense of

such a measure. In particular, adjustments

are made to exclude income flows to military personnel not living with their

families, to institutional residents, and to

nonprofit institutions, as well as the undistributed incomes of private trust, welfare, and pension funds.11

New National Series

The tables on personal income on a national basis have been expanded in order

to introduce additional monthly and quarterly information.12

 Manufacturing payrolls, available hitherto only on an annual

basis, will henceforth be reported currently, by month and quarter. A 4-way

breakdown of transfer payments will be

made available quarterly.

Additional monthly detail on proprietors' and property income is also presented. Because of gaps in the primary data

and other difficulties encountered in the

preparation of short-term income estimates, most of this detail has little significance of its own. It is provided mainly at

the request of analysts who need it to

round out their use of other monthly time

series that possess independent validity, or

to recombine monthly personal income

components in alternative forms. In addition, users will sometimes find such detail

helpful in tracing the exact source of

changes in the reported total of personal

income.

Appended to the quarterly and annual

tables is a measure of disposable personal

income in dollars of constant purchasing

power—a series frequently requested by

users of our data. A conceptual problem

posed by this new series should be mentioned. If disposable income is thought of

as the sum of consumption and saving, the

procedure of deflating the total by the implicit price index for personal consumption expenditures—as is done here—is seen

to be somewhat arbitrary. This procedure

may be justified pragmatically, however,

since income saved is a relatively small

part of the total and no clearly superior

alternative for deflating saving seems to be

available.

Annual information on consumer expenditures in constant dollars, detail on

which has heretofore been confined to the

totals for durables, nondurables, and services, is now shown separately for the major

subcategories of these in table 11-5. The

new series are provided in response to a

widespread demand for greater detail,

11. The unit of measurement is the family or unattached individual, as defined by the Census

Bureau. Families are groups of two or more persons

related by blood, marriage, or adoption and residing together; unattached individuals are persons,

other than institutional inmates, who are not living

with their relatives.

12. See tables II-I through II-3.

which has here been met within the practical limitations imposed by the basic price

data available and by special conceptual

difficulties met in deflating certain service

items in particular.

GOVERNMENT RECEIPTS

AND EXPENDITURES

The third group of tables brings together a greatly expanded set of materials

on the income and product flows involving

government.

New Quarterly Data

New quarterly tables show receipts and

expenditures in some detail, together with

the surplus or deficit on income and

product account. (See Figure 4 in Chapter 1.) These are presented separately for

the Federal Government and for State

and local governments as a group.13 They

are designed to provide an integrated, upto-date picture of developments in public

finance, as these developments affect the

national economy. The breakdown between Federal and other governments will

prove useful because of the substantially

different circumstances surrounding fiscal

operations at these two levels.

From the standpoint of carrying the

series forward on a current basis, the delayed availability of data on corporate

profits and profits tax accruals for the current quarter will present a special problem.

Depending on progress in the fields of data

collection and tabulation and on the particular economic conditions prevailing, it

may or may not prove feasible to estimate

this key revenue item on a preliminary basis

so as to complete the tables.

Expenditures by Function

and Object

A new annual table provides estimates

of government purchases and other expenditures classified by type of function

(table 111-8). The breakdown, relating

outlays to their end-purposes and indicating the costs of the various kinds of services rendered to the public, represents an

advance over the distributions previously

shown, which went no further in this direction than to distinguish defense from

nondefense outlays.

Of the many possible schemes for classifying the functions of government, the one

adopted for the present report is an inte13. Tables III-3 and III-4.

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56 DEVELOPMENT OF THE NATIONAL INCOME MEASURES

grated version of those employed in the

Budget of the United States Government

and in the reports of the Census Bureau on

State and local government finances. On

the whole, this classification is very similar

to one developed by the United Nations,

the grouping and nomenclature of which

were also taken iQto account.

It should be noted that the functional

classification of government expenditures

needs further work, conceptual as well as

statistical. At present not even the proper

goals of such a classification are definitely

established. For instance, specialists sometimes ask for a breakdown permitting the

separation of outlays which benefit business

from those which benefit consumers,

though it is doubtful whether this idea can

be implemented in practice. The present

classification is not designed for this purpose; the details shown might, however,

perhaps be rearranged in such a way as to

cast light on the matter.

The estimates for each functional category show Federal outlays separately from

those of State and local governments. A

further breakdown classifies outlays for

each function into purchases of goods and

services, transfer and interest payments,

and subsidies (net of government enterprise surpluses). In the case of the Federal

Government, grants-in-aid represent a

fourth category.

In connection with many of the functions, the goods and services purchased consist mainly of employee services. In the case

of others, substantial outlays for equipment,

construction, or materials are involved as

well. For major types of national defense

activities, and for education, two functional categories which are of particularly

great interest and of primary quantitative

importance, another new table shows expenditures for such major objects separately (table III—9). The object details

given represent a selection of the measures

Fig. 26

Distribution of Families and Individuals by

Size of Income in 1956

Percent

20

10

30

20

10

30

FARM OPERATOR FAMILIES

10

UNATTACHED INDIVIDUALS

Under 1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10 & Over

Size of Family Personal Income—Thousand Dollars

found most useful in current analyses of the

GNP. As in other areas, a good deal of potentially valuable detail has had to be foregone because of data limitations.

Relation to Other Data

Closing the section on government

transactions is another set of tables which

has frequently been called for. These link

the receipt and expenditure aggregates in

the national income accounts to the corresponding totals in the United States

Budget and, for State and local governments, to those compiled by the Census

Bureau. The relationship of the income

and product measures, which are designed

specifically for economic analysis, to these

bodies of primary statistical data is of interest chiefly as providing a link facilitating

their joint use. For example, the new tables

will help users to translate reported budgetary developments into terms of shifts in

governmental demand for goods and services, and to evaluate the implications for

other parts of the national economy.

Moreover, many of the specific items involved in the reconciliation are of intrinsic interest because they illuminate aspects

of financial management.

In view of the importance of these tables

in economic analysis, we shall explain their

contents in some detail. The relation items

are grouped into a few broad categories.

(Overlapping items are classified for convenience according to the nature of their

principal components.) Such groups include those reconciling differences in (1)

agency coverage, (2) treatment with respect to netting and consolidation, (3)

time periods during which the transactions

reported are deemed to have been carried

out, and (4) handling of capital transactions.

Table 111-10, dealing with the Federal

Government, relates the "administrative"

and "cash" budgets to the statement of

Federal receipts and expenditures which

appears in the national income and product accounts. A detailed reconciliation between the Federal administrative and cash

budgets appears both in the Budget document itself (Special Analysis A) and in

current issues of the Treasury Bulletin.

The major components of this reconciliation, as summarized in table 111-10, are

adjustments made to the administrative

budget in order to consolidate the accounts

of trust funds, Government-sponsored enterprises, and the general and special funds

of the Treasury. Thus the cash-budget

totals already incorporate the principal

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WHAT'S NEW IN THE PRESENT VOLUME 57

come purposes as to agency coverage as

well as to account consolidation.

With respect to agency coverage, a reverse adjustment of the Federal cash budget

is required to remove the totals for the

District of Columbia, since these are included with the State and local figures in

the national income statistics.

As regards consolidation and netting, the

following principal adjustments of the cash

budget are made. The Government's contributions to the veterans' life insurance

funds and the contributions of the Government and its employees to employee

retirement funds are consolidated out in

the cash budget as intragovernmental

transactions. They are added back both to

receipts and expenditures in the national

income accounts, where these payments

are treated as earned by the recipients and

invested by them in the funds.

Property income flows are reported

partly on a gross basis in the cash budget;

for national income purposes, governmental receipts of such income are netted

against payments by deducting them from

both sides of the cash budget.

The timing adjustments are required

mainly to convert the Government records

of transactions with business from a cash

basis to an accrual basis consistent with

their treatment in the business accounts.

Examples of items requiring such adjustment include business taxes—especially

corporate profits taxes—and Treasury

payments for goods delivered earlier or to

be delivered later.

A variety of other items which serve

essentially to adjust the time-reference of

transactions records are also shown. One

of these eliminates the time lag which

occurs between employers' withholding of

individual income taxes on their employees' pay and the forwarding of these sums

to the Treasury; the cash budget reflects

such collections only as they are covered

into the Treasury, while for national income purposes the collection is deemed to

have been made at the time of withholding.

Another adjustment which deserves mention is for GCG-guaranteed nonrecourse

loans to farmers. These enter the cash

budget only as the Government guarantee

is redeemed. In national income accounting, however, such loans are treated as

current purchases at the time they are

made (along with nonrecourse loans extended directly by the CCC).

The final group of adjustments to the

cash budget is required to eliminate receipts and expenditures reflecting transactions in financial and second-hand assets.

The present national income account for

Government (as for other transactor

groups) is designed to cover currentaccount transactions only. Capital-account

dealings are shown only in a statement for

the economy as a whole, in which transactions in financial and second-hand assets

cancel out.

Adjustments similar to those made for

the Federal Government are applied also

to the State and local government figures

reported by the Census Bureau (table III—

11). The agency coverage of the Census

totals is modified to exclude the State unemployment insurance funds, which are

held in trust by the Federal Government

and are treated as part of the Federal financial structure in the cash budget and

in the national income statistics alike.

Under the head of netting and consolidation, adjustments are required to convert

the transactions of government enterprises from a gross to a net basis; and entries paralleling those outlined above for

the Federal Government are made for

property income flows and government

contributions to government-employee retirement funds. Business tax receipts are

converted from a cash to an accrual basis;

and capital transactions are excluded both

from receipts and from expenditures.

FOREIGN

TRANSACTIONS

The present report incorporates an extensive revision in the handling of foreign

transactions, a reconciliation table explaining the difference between the national

income treatment of these and their treatment in the United States balance of international payments, and a substantial

volume of empirical data drawn from the

latter.

The changes in the handling of foreign

transactions can best be understood by reference to their previous treatment in the

national income accounts. In that treatment, foreign transactions were represented

in the GNP statement by the balance of

three items: (1) United States exports of

goods and services less (2) imports and less

(3) transfers (net)—gifts and grants—

made by this country to abroad.

New Treatment of Major

Categories

Exports of goods and services enter the

gross national product positively, because

they are a component of United States

output. Imports of foreign goods and services enter negatively, because they are included in the purchases of the various

market groups distinguished in the GNP

breakdown; they must therefore be deducted from the sum of these purchases

to derive from the purchases side a measure of output attributable to the United

States. The prior treatment of gifts and

grants was similar to that of imports because—along the then conventional lines—

these transfers were included in the purchase components of GNP as though they

represented imports of foreign services.

Inasmuch as any excess of receipts from

exports over payments for imports and

transfers must be matched by a corresponding change in the net international asset position of the United States, the balance of

these three items was labeled "net foreign

investment" in the former GNP statement.

In the new treatment of international

transactions adopted in the present volume,

net cash transfers made by the U. S. Government are no longer included in the Government-purchase component of the gross

national product. They are correspondingly omitted from the calculation of the

foreign entry, thus leaving total GNP unchanged. In conformity with this definitional change, that entry is now designated

as "net exports of goods and services." Also

to be noted, the underlying gross flows of

exports and imports are shown separately.

The Government grants formerly merged

with Government purchases are now recognized and labeled as grants in the national accounts: They appear as a new and

separate component of Government expenditures (leaving total Government expenditures unchanged). The counterentry is to

be found in the new foreign account. Designed to show the key flows affecting foreign trade, this account presents receipts

from exports as financed by payments for

imports, by net cash transfers from the U. S.

Government, and by funds made available

by United States investment abroad. In

the future, our regular reports on the GNP

will include a statement of the foreign

account in terms of these four measures.

The new treatment has several advantages. It introduces an analytically important distinction between Government purchases, on the one hand, and cash grants,

on the other. It makes the breakdown of

GNP conform consistently, and appropriately, to a measure of the flow of goods and

services to broad purchaser groups (instead

of expressing the foreign entry in terms of

the financial concept of net foreign investment). And it shows the net foreign balance in terms of the underlying gross

export and import totals, thus providing a

better view of the relative importance of

foreign trade to the United States economy.

It may be seen that some information

has been added by this revision in the

handling of foreign transactions, whereas

none has been lost. In particular, net foreign investment continues to be recorded

in the accounts even though it is no longer a

component of the gross national product.

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58 DEVELOPMENT OF THE NATIONAL INCOME MEASURES

Attention should be called to certain

more detailed definitional aspects of the

new treatment. The most important of

these relates to the exact line that has been

drawn to distinguish foreign aid in cash—

which is represented in the new tables by

an international transfer—from foreign aid

in kind, which continues to be reflected as a

purchase by Government. Cash aid is defined to include all aid involving the transfer of funds to a foreign agency or account;

aid in kind is aid not involving such a transfer of funds. The result of these definitions

is a concept of cash aid that is relatively

wide, and of aid in kind that is correspondingly narrow. Illustrative of a number of

borderline cases which are handled as cash

grants are the instances in which funds are

transferred for the purchase of specified

commodities. These are not analytically

very much different from direct shipment

of the commodity without any international

transfer of funds intervening.

In principle, it will have been noted, the

treatment of personal gifts (immigrant and

other private remittances) should have

been changed along with that of governmental aid transactions. In practice, because of the relatively small scale of private remittances, it has not seemed worthwhile to burden the accounts with the special transfer entries which would be required for a parallel treatment. Personal

remittances are therefore still handled as

consumer purchases.

The treatment of international flows of

public debt interest has been revised in

line with the interpretation placed on internal flows of such interest. All these government interest payments, international as

well as domestic, are now handled consistently as analogous to transfer payments.

Balance-of-Payments Bridge

In relation to the detailed statistics of

the balance of international payments

which are compiled by OBE, the main

difficulty with the former national income

tables on foreign transactions was the inconvenience met with in using the two

sets of materials together. Definitional differences between them are now explained

in table IV-4. These differences stem primarily from the points just considered,

each of which gives rise to entries in the

reconciliation table.14

Data Provided for Full View

The picture of United States foreign aid

which emerges in this framework is still

far from complete. Gash grants represent

only part of total United States foreign

assistance, which has taken the form also

of grants in kind and of Government loans.

Table IV-6 provides a summary view of

the entire program. It shows aid outlays

distributed by form—grants and long- and

short-term credits—and by military and

nonmilitary character, a broad geographic

breakdown being given for each of the

latter. These data are drawn from a separate and continuing OBE study of foreign

aid as such. It should be noted that they

differ somewhat in the definitions and timing of specific transactions from the balance-of-payments summaries.15

 They are

shown here in highly condensed form; a

large volume of supporting material on

the types and geographic patterns of aid

expenditures is available in other OBE

publications.16

A summary of the balance of payments

is given in table IV-5.17 This table shows

annual data on exports, imports, and transfers, with information on each conforming

to that in the quarterly balance-of-payments reports published in the SURVEY. Extensive geographical detail on all of these

items and further breakdowns by type for

most of them are published in the regular

balance-of-payments publications of the

OBE. The most recent of these is the Balance of Payments Statistical Supplement.18

SAVING AND

INVESTMENT

Of critical importance in the economic

process are the flow of saving into productive investment and the contributions of

the capital so accumulated to output and

to income. The Office of Business Economics has been concerned for many years

with the study of this subject, both in connection with the national income and

product and through other programs.

The most widely used and economically

significant of these OBE studies have been

brought together in condensed form in the

fifth group of tables. Included also are

certain tabulations, supplied by other agen14. From total exports of goods and services as

given in the balance-of-payments statement, there

are deducted (1) military grants and other grants

in kind, which are still treated as Government purchases rather than as exports in the national income

accounts, and (2) the inflow of interest to U. S.

Government. (It may be noted that the latter item

is used as a statistical approximation of interest

payments by foreign governments.)

Imports of goods and services as given are adjusted by adding personal remittances and deducting public-debt interest paid to foreigners.

A third subsection of the table summarizes net

balances on goods and services according to the balance-of-payments and national income definitions.

A fourth quantifies the differences between the

two definitions of international transfers. From

the balance-of-payments measure we deduct military and nonmilitary transfers in kind as well as

private remittances, and we add the net outflow of

public-debt interest. It may be noted that these

adjustments are the obverse of those made to the

balance-of-payments totals for goods and services.

Finally, the table shows how net foreign investment can be derived as the net balance of exports

less imports and transfers (by either the balanceof-payments or the national income definitions, since

the adjustments merely rearrange items without

altering the balance of debits and credits).

cies, which have been part of the annual

national income reports since 1947.

Unlike the other statistical tables, this

set contains a substantial amount of material not yet integrated into the national

income accounts. A research project now

under way has as one of its major aims the

remedying of this situation, which is a

source of trouble when the attempt is made

to use the data in conjunction with one

another.

Fixed Investment

Following the familiar summary of

Sources and Uses of Gross Saving which

introduces this set of tables, there appears

a detailed breakdown of investment in the

form of new construction. This is given

not only in current dollars as before but

also, somewhat condensed, in dollars of

constant purchasing power (table V-IV).

For the most part, the deflation here has

been accomplished by the use of cost indexes. In the regular constant-dollar GNP

tables, it may be noted, we have modified

these cost indexes to reflect changes in

profit margins—a modification which

renders them more suitable for use in deflation since such margins are of course

included in the current value of construction activity.

The construction statistics are prepared

by the Business and Defense Services Administration of the Commerce Department

in cooperation with the Department of

Labor. They are supported by further

breakdowns of various types in the reports

of these other agencies.

The standard GNP table showing private purchases of producers' durable equipment by type of product is likewise now

presented in constant dollars (table V-6)

as well as current dollars. These materials,

like the construction activity details, represent important elements in the three-way

classification of capital formation by commodity type and by the industry and legal

form of the purchaser—which, as explained

later, we consider most essential for effective analysis.

Regrettably, data problems encountered

in the estimation of the current-dollar

series have so far prevented breakdowns of

producers5 durables from being carried

15. A detailed reconciliation appears in the Balance of Payments Statistical Supplement (Washington, U. S. Government Printing Office, July 1958,

$1.00).

16. See Foreign Grants and Credits by the United

States Government (Washington, Office of Business

Economics, quarterly).

Foreign Aid by the United States Government,

1940-51, a supplement to the SURVEY OF CURRENT

BUSINESS (Washington, U. S. Government Printing

Office, 1952, $1.00) and annual articles appearing

in the April issue of the Survey.

17. For international capital transactions, see

table V-II in the Statistical Section.

18. See footnote 15 above.

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forward beyond 1954. (See discussion of

this problem in Chapter 8.)

All these tables on construction and

equipment outlays are essentially breakdowns of regular components of the gross

national product. Related to them and

utilized in estimating these components,

but differing somewhat in categories both

of goods and of purchasers covered, are the

widely used OBE-SEG tabulations of new

plant and equipment expenditures by

United States business (table V-7).

These are based on quarterly surveys

which gather information on recent past

and anticipated future outlays. The survey

results are analyzed regularly in the SURVEY OF CURRENT BUSINESS, where a

variety of supplementary material is provided to support and illuminate the standard industry breakdown. The latter breakdown is given in table V-7, where it

represents industry-of-purchaser detail of

the type required for the three-way classification just mentioned.

Sources and Uses of Funds

An analysis of personal saving in terms

of estimated balance-sheet changes has

been included in the national income statistics through a tabulation showing Securities and Exchange Commission estimates

of personal saving and a comparison with

Department of Commerce estimates. This

tabulation is presented in a rearranged

form as table V-9, with a shift in emphasis

to bring out the totals and details of

real and financial investment and of net

borrowing.

Broadly paralleling this account of personal saving and how it is used are two

regular OBE tabulations which deal respectively with the sources and uses of

corporate funds and with capital transactions in the balance of payments.

The former (table V—10) sets corporate

plant, equipment, and inventory investment in the perspective of the corporations'

internal fund sources, long-term and other

external sources, and changes in financial

assets. It is a principal tool for the understanding of developments in investment

finance.

The tabulation of the balance of payments on capital account (table V-ll)

is a section of the regular balance-of-payments statement published quarterly by the

Office of Business Economics. It details

the applications of United States investment funds abroad—including loans by the

U. S. Government—and of foreign funds

in this country.

Together, these three tables reflect most

of the financial transactions involved in

the flow of national saving to gross private

and net foreign investment. As has been

noted, they have not been articulated with

466759 0—59 5

one another. Because of definitional and

statistical differences among them, crosscomparisons and other types of analysis

involving the use of the three in conjunction are possible only on a very general

level.

Capital in Manufacturing

The saving and investment part of the

Statistical Section ends with a group of

annual tabulations dealing with physical

investment in manufacturing since 1929.19

In these, gross private purchases of

structures and of equipment are given in

current and constant dollars. Annual depreciation charges are measured on the

basis of the same valuations (and also in

terms of original cost). Net formation of

structure and equipment capital is shown

in current dollars and constant dollars as

the difference between the purchase and

depreciation series, and this measure is

supplemented by correspondingly valued

series on inventory change to account comprehensively for net tangible private capital formation in manufacturing establishments. Finally, estimates of net stocks of

structures and of equipment are derived by

the "perpetual inventory" method—i. e.,

essentially by differencing gross purchases

and the depreciation accruing on them.

These estimates, taken together with a

series on total inventory holdings, give a

complete picture of the real asset structure

of manufacturing over the past 30 years.

The results of this study are key materials for an understanding not only of the

changing composition of capital but also

of its relationships to output, income, and

employment. Illustrating some of the

types of conclusions possible from these

data are several which are discussed in detail—and with proper qualifications—in

the November 1956 issue of the SURVEY:

the shift in form of fixed capital from plant

to equipment; the relatively greater

growth since 1929 in the stock of capital

than in the annual man-hour input; and

the sharper uptrend in output than in the

value of capital applied to production.

(See Figure 27.)

Materials for Basic Study

All these newly introduced bodies of

data may be viewed, in conjunction with

those which were also included in earlier

reports on the national income, as building-blocks for use in OBE's study of saving and investment.

One aspect of this study centers around

the preparation of separate accounts for

19. Tables V-12 through V-15u

each of the major saver-investor groups.

Into these will fit improved and mutually

consistent versions of the tables on personal

saving and its disposition, on corporate

fund sources and uses, and on the capital

transactions in the balance of payments.

Certain deficiencies of these tabulations

from the standpoint of such use in their

present form have already been noted.

Various conceptual and statistical inconsistencies among them need to be resolved.

The figures on fixed investment provide an

important example. Involved here is the

relationship between the plant and equipment survey data used in the personal and

corporate fund-use tables, on the one

hand, and the totals for construction and

equipment spending which are included in

the GNP, on the other. The basic source

materials underlying these two sets of

tables seem at times to conflict in the

movement they indicate for fixed capital

outlays.

Many of the other series included also

call for more precise definition, and for

strengthening of their statistical foundations both to reduce margins of error and

to permit more adequately detailed

presentation.

A coordinate part of the saving and investment project is aimed at developing

measures of capital formation, consumption, and stocks in the economy along the

lines indicated by the special tabulations

here presented for manufacturing. The

value bases and other aspects of capital

change are to receive intensive study in

this connection.

Further discussion of this project is deferred to the next chapter.

INCOME AND EMPLOYMENT

BY INDUSTRY

In this section are brought together all

the standard industry tables on the origins

of the components of total national income, on the number of employees and

their average annual earnings, on the number of persons engaged in production, and

on corporate sales.

In addition, there is included for the first

time a breakdown of depreciation charges

for corporate business by industry and for

noncorporate business by industry division.

These new data have been much in demand for use in deriving "gross" variants

of business and national income originating. Most of the values shown represent

charges allowable for tax purposes, which

reflect acquisition cost to the holder. Farm

depreciation is presented on a replacement

cost basis, however, and personally owned

housing (in the real estate industry) is depreciated in terms of its original construction cost.

Work on alternative economic measures

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60 DEVELOPMENT OF THE NATIONAL INCOME MEASURES

of capital consumption has been initiated;

because of the numerous theoretical difficulties and data gaps involved, the present

concepts are the only one for which measures both comprehensive and detailed can

be provided for some time to come.

Also included in this part of the Statistical Section is the quarterly breakdown of

corporate profits by broad industry groups

(table VI-10) to which attention has been

drawn earlier. This is presented on a seasonally adjusted basis, incorporating the

results of an extended study of typical quarterly patterns. Since these patterns are in

general clearer and more consistent in data

adjusted to eliminate inventory gains and

losses, the seasonals have been removed using data so adjusted. Corresponding details for book profits are not available.

Quarterly profits are shown in total without seasonal adjustment and including and

excluding inventory valuation gains in the

final part (VII) of the Statistical Section,

which also contains a variety of other supplementary tables.

NATIONAL ACCOUNTS REVIEW

COMMITTEE

Completion of the portion of OBE's

work program discussed in this chapter

covers most of the needs in this field that

could be implemented with the resources

made available for collection and processing of primary statistical data for national

income estimation. These needs were reviewed with the National Accounts Review

Committee that last year reported on the

status of the United States economic accounts. Meeting these needs is an outcome

of OBE's progress in recent years; this permitted what may appear to be a quick

implementation of the Committee's recommendations.

The Review Committee, consisting of a

representative group of economists connected with private organizations, was organized in late 1956 by the National Bureau

of Economic Research, at the request of

the U. S. Bureau of the Budget, to review

and appraise the national economic accounts and present recommendations for

their improvement. Its report was completed in the middle of 1957 and appears

as an appendix to last year's congressional

hearings on the national economic accounts.20

The recommendations of the NARC

20. XL S. Congress. Joint Economic Committee :

The National Economic Accounts of the United

States. Hearings before Subcommittee on Economic Statistics, 85th Congress, 1st session, October 29 and 30, 1957, Washington, U. S. Government Printing Office, 1957. In this volume, a

statement by Charles F. Schwartz, Assistant Director of the Office of Business Economics, sets

forth OBE's development program snowing its

agreement with major recommendations of the

National Accounts Review Committee.

were based in part on extensive studies and

investigations which it conducted on its

own, including a canvass not only of the

producers of the national accounts but also

of the main groups of users, including business, labor, and university economists. In

addition, the Review Committee took into

account the results of the 1955 meeting of

Fig. 27

Increase in Manufacturing

Output, 1929 to 1957

Related to Labor and

Capital Expansion

Percent

150 —

100 —

50 -

Production Physical

Capital*

Man-Hours

:

 Including inventories and

government - owned assets

the Conference on Research in Income and

Wealth, which was devoted to an appraisal

of the United States national income and

product accounts. To this meeting we contributed a detailed review of the conceptual

basis of the official accounts, as well as discussions of the various proposals concerning

these accounts which were made by other

participants.21

The recommendations of the Review

Committee for the national income work

can be grouped under three principal headings: Definitions of the major aggregates;

presentation of the existing data and of

various additional sets of estimates capable

of early completion; and future developmental work desirable for the longer term.

Comment on Major Aggregates

The overall scope and definition of the

major aggregates are scarcely touched at

all by the many separate recommendations

contained in the Review Committee's re21. See the paper by George Jaszi on "The Conceptual Basis of the Accounts," and replies to other

papers, in Studies in Income and Wealth, Volume 22.

Princeton University Press for National Bureau of

Economic Research, 1958.

port. The measures of national income and

of gross national product would be changed

only to a minor extent—principally by the

addition of interest paid on the debt of

State and local governments, which is not

included in our measures of the Nation's

output. The Committee's proposal for this

change emerged from a weighing of pros

and cons involved in controversial theoretical questions of long standing, and is

one with which we do not agree.

Personal income and disposable income,

under the Committee's suggestions, would

be changed only to include transfer payments to individuals from abroad—an item

of very small magnitude which is now

netted against the corresponding inflow (a

component of consumer outlay). The practical reasons for not introducing this change

have been noted earlier in connection with

our discussion of the revised treatment of

international transactions.

In this summing up of the Review Committee's recommendations with respect to

their effect on the aggregates, we do not

wish to imply that the individual Committee members regard the definitions which

have been adopted in the national income

and product accounts as representing a

wholly satisfactory and fully settled state

of affairs. The definition under which national output can most usefully be measured is in part a matter of judgment requiring some difficult and controversial

decisions, and the Committee encountered

a number of areas which always have presented problems to the national income

technicians. In general, however, the Committee felt that the present handling of

these areas was as adequate as might be

expected pending further developments in

the field. In a few instances it quite advisedly has recommended the provision of

alternative, supplementary measures, in reflection not only of an unsettled state of

professional opinion but also of the need

for different measures to serve different

purposes.

Shorter Term Proposals

While proposals of the National Accounts Review Committee would not alter

significantly any of the basic aggregates,

they called for certain changes in the detailed material. Improvements introduced

in the present volume which may be considered to be in line with the major shortrange recommendations of the Committee

are referred to below.

Particularly to be noted among these

is the 5-account system which introduces

the statistical tables. The basic changes

represented by this system, which are reviewed above, have been rather uniformly

in the direction which found approval in

the NARC Report. (As the Committee remarks, to a great extent the same principles

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WHAT'S NEW IN THE PRESENT VOLUME 61

were already embodied in the quarterly

tables of the national income and product.)

It will be observed, incidentally, that

changes in the categories of transactions

distinguished have been held to a selected

few in the present version, pending further

study. The particular set of account stubs

shown in Appendix A of the Committee's

report—designated as "tentative and

. . . not to be regarded as a specific recommendation by the Committee"—presents certain difficulties: e. g., it leaves no

place in the system for national income and

for corporate profits as such, and it calls

for a redefinition of personal income which

is not advocated in the body of the report

itself.

The first group of tables in the Statistical

Section of the present volume contains several innovations which bear on requests

made by the Committee. One of these represents the fruition of OBE's work on the

measurement of real gross product on a

quarterly basis. The new tabulations of current-dollar and real gross product in terms

of durables, nondurables, services, and construction may also be mentioned, along

with those of GNP by producer group—

nonfarm business, government, agriculture,

etc. The former will, in the words of the

Review Committee's report, "permit users

to treat purchases of consumer durables

and government outlays for structures and

equipment as capital expenditures which

increase the stock of material wealth," if

they wish. The producer-group breakdown

is one requested for use in analysis of output as related to employment and manhours.

The extension of the current- and constant-dollar gross national product estimates back to 1909 likewise fills a longrecognized gap which was stressed by the

Committee.

In the second group of tables, dealing

with personal income and outlay, we have

made several additions which relate to

views of the NARC. Most noteworthy are

the constant-dollar estimates of consumer

expenditures for the major subcategories of

durables, nondurables, and services, which

are in line with the Committee's recommendation for finer breakdowns of the

annual figures.

Among the additions made to the government tables, there are five which deal

with subject matters of particular concern

to the Review Committee. One is the functional classification of expenditures. The

added object breakdown of government

purchases is another. The systematic reconciliation of our measures of receipts and

expenditures with those of the Federal

Budget and the Census Bureau was specifically endorsed, and a wish was indicated

for a quarterly measure of the Federal surplus or deficit such as we now provide. A

fifth change—the reclassification of cash

foreign aid to treat it as a transfer rather

than a purchase outlay—is only partly in

the direction of the Committee's preference.

With regard to this last point, we have

not followed the Committee's proposal to

extend the same treatment to aid in kind.

One reason for not taking this further step

of imputing a payment and a foreign purchase in the case of aid rendered in kind is

that we doubt its analytical superiority—a

doubt which seems to be reflected, with respect to the military-aid component which

dominates the total, on page 199 of the

NARC report. Also, there is the logical difficulty of restricting the notion of government transfers in kind once such a notion

is applied to any purchased good or service.

As indicated by the earlier discussion in

this chapter, we believe that the broader

definition of foreign aid should be implemented statistically through supplementary

tables, rather than in the main GNP statement itself. Therefore, in this case, and in

two or three others which have been handled more summarily than in the classification scheme of the Review Committee's

report, the new set of national income statistics contains the information required for

a different treatment if desired by the user.

The quarterly and annual tables on foreign transactions in the national income

accounts likewise include several features

which have the effect of adapting them

along the lines of preference of the Committee. Chief among these is the presentation of exports and imports of goods and

services on a gross basis, with transfers and

investment shown in their role as helping

to finance such trade. Again—a minor

point elaborated by the Committee—the

inflows and outflows of public-debt interest are now isolated and treated like transfer payments.

The saving and investment part of the

Statistical Section brings together the

initial contributions to our major project

under way in this field. This is a key

area where the Review Committee joined

others in calling for further progress in

OBE's national income accounts.

Tables which incorporate rudimentary

sector saving-investment accounts are

shown for persons, corporations (other

than banks and insurance companies), and

foreigners dealing with the United States

on capital account. Detail on real fixed investment is included for the first time, in

the form of constant-dollar tables on construction activity and producers' durable

equipment. Both these and the breakdown

of plant and equipment outlay by industry

of purchaser which is now introduced into

the standard set of national income tables

represent steps toward the three-way classification of fixed investment which the

Committee, like ourselves, finds most important for analysis in this area. Finally,

the special tables for manufacturing include much information—such as depreciation valued at constant cost and at replacement cost—which fits into the Committee's suggested program for improved

measures of real capital and changes

therein.

Developmental Work

As will be seen in the next chapter from

our discussion of the needed directions of

future research in national income, we

find our views broadly consistent with most

of the major suggestions which the National Accounts Review Committee makes

for longer range developmental work—including in particular the pointed emphasis on more and better source data as essential for the effective implementation of

such programs.

With respect to this latter basic requirement endorsed by the Committee, it is our

hope that a broad Government program

will be established to close data gaps and

to speed up the production of primary information—steps which are necessary for

significant improvement in the present national income and product estimates and

for the success of developmental projects in

this field.

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DEVELOPMENT OF THE NATIONAL

INCOME MEASURES

6. Directions of

Mure Research

A balanced program for national income

work must have two main elements. One

is to strengthen the statistical quality of

the existing measures. The other is to improve the national income accounts conceptually and extend them to areas of the

economy not now adequately covered.

Before we turn to a discussion of developmental work proper, it must be stressed

that a major part of our effort will continue

to be in the statistical area. Our plans here

are shaped by the fact that the National

Income Division is a processor rather than

a collector of primary data. Its chief role

is to point up significant data gaps and to

promote and help design steps to fill them.

Such steps represent the key to any

major improvement in the reliability of

the estimates. An increase in the resources

available to OBE for its processing function may also be expected to yield gains in

accuracy. While limited by comparison

with those possible from data improvement,

these gains will nevertheless be very substantial in relation to the cost involved.

Similar comments apply to the proposals for developmental work. Continued

advances may be anticipated with the resources now at hand, but adequate progress requires both an increase in the staff

available for work directly on the national

accounts and the gathering of additional

statistical data.

Since resources are necessarily scarce,

one must be selective in planning how to

use them. There are, in our judgment, real

priorities in the sequence in which desired

objectives should be met. The projects that

will be discussed in this chapter could become the elements of a balanced program,

under moderately optimistic assumptions

as to the supply of data and the staff for

processing them.

In outlining the particular areas of research where we feel progress would be

most desirable, we shall refer to the types

of data improvement likely to be most

helpful. This will permit a view of the

work of the data-collecting agencies of the

Federal Government in the light of what

is needed for the development of the national income accounts. Obviously no detailed listing of data requirements is

possible or necessary at this stage. Yet there

are certain immediate or basic requirements that clearly should be stressed.

THE INVESTMENT

PROCESS

The Office of Business Economics has

for many years been engaged in the measurement and analysis of various aspects of

the saving-investment process, a key element in the functioning of our economy.

This work is being more closely integrated

and extended further.

The core of the project, from the national income standpoint, is the elaboration of the saving-investment information

now contained in the national accounts.

The work involved here has to do with the

improved measurement of saving and capital formation, on the one hand, and of the

associated financial flows, on the other.

As in our work in general, we shall

endeavor to present the new information

in a conceptual framework well adapted

to the needs of economic analysis. We also

plan to give full attention to data problems. In the derivation of the new measures, existing sources will be used as intensively as possible, and needs for additional data programs will be formulated

and brought to the attention of the Budget

Bureau and of the data-collecting agencies.

And, in deciding upon the detail in which

the new measures are to be designed, we

shall be guided closely by the adequacy and

reliability of the primary information

available to construct them.

It should be noted that the OBE savinginvestment program includes a number of

developmental and analytical projects

which lie beyond the sphere of national income accounting per se}

 and which will

therefore not be reviewed here. An important example is the strengthening of our

program in the field of business anticipations, in which a rich harvest in terms of

economic guidance has rewarded our past

work.

Saving-Investment Accounts

The basic framework for tying the new

information together will be a set of saving-investment or fund sources-and-uses

statements for major economic groups,

along lines which the National Accounts

Review Committee viewed with approval

in contemplating the directions to be followed in extending our work.

These statements can be viewed as deconsolidations of the present national saving-investment account (see table V-l of

the Statistical Section). In this table, the

savings or surpluses of the major economic

groups, carried forward from their respective current accounts, are matched by the

various kinds of capital formation. The

proposed accounts will be set up along

the same general lines, but will also show

transactions in financial assets and liabilities among domestic groups as they affect,

or are influenced by, the real changes in

saving and investment. These transactions

—the means by which much of the national

saving is effected and real investment made

possible—cancel out when the accounts of

the various groups are consolidated into a

national statement.

Proceeding along institutional lines

similar to those drawn in the present national income accounts, we plan to establish

separate saving-investment or sources-anduses accounts for individuals and for government. To these will be added similar

accounts for nonfinancial corporations and

for financial institutions. A statement

covering international capital transactions

will complete the set. Like the summary

current accounts, the new saving-investment statements will be supplemented by

a set of tables which will contain supporting detail.

Our present plans provide for informa62

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DIRECTIONS OF FUTURE RESEARCH 63

tion only on an annual basis. We shall, in

addition, explore the possibilities of

shorter term measurement; however, the

statistical problems—stemming from the

general insufficiency of the data, their lack

of synchronization, and their seasonal

variability—are very large.

The manner in which saving-investment

information is to be provided within the

framework of the national accounts has

merely been sketched above. The following discussion will deal further with the

economic groups to be distinguished, and

with the measurement of their financial

and real saving-investment transactions.

The plans are subject to further specification and modification in the light of the

conceptual work that remains to be done,

and in the light of the data problems that

will be encountered as we proceed in their

implementation.

Treatment of Major Groups

As now defined, the personal segment of

the economy covers nonprofit institutions

and private pension and welfare funds

along with consumer households. For analysis of the saving-investment process, it

would be desirable to have separate information on these entities. There are several

alternative ways in which the separation

can be effected; these are being studied,

taking into account the requirements of

analysis as well as the statistical information available to implement them.

Another splitup of the personal savinginvestment account that would be of great

interest would separate the transactions of

major types of families—families headed

by farm proprietors, nonfarm entrepreneurs and wage-and-salary earners, for

instance. The basic statistical information

necessary to make these distinctions would

be extremely difficult and costly to obtain,

however, and there is little hope that it will

become available on a regular basis in the

foreseeable future.

In the absence of empirical data, attempts have been made to segregate entrepreneurial saving on the basis of a variety

of assumptions—all of them, however,

based on the common premise that it is

possible to distinguish the saving-investment transactions in which an entrepreneur engages in his business capacity from

those in which he engages in a personal

or consumer capacity. We do not believe

that the entrepreneur himself is aware of

such a distinction; nor is such a distinction

embodied in existing business accounting

records. Accordingly, we do not plan to

introduce this vivisection of the entrepreneurial personality into the national

accounts.

The government fund sources-and-uses

statement should be subdivided to distinguish Federal from State and local governments. This project and possible extensions of it will be referred to in our statement concerning research on the government accounts.

As to the further subdivision of the corporate nonfinancial group, we have done

some work in the past on the breakdown

of sources and uses of corporate funds

Financing Corporate Capital Requirements

Cumulative, 1947-1957

Fig. 28

Fixed outlays dominated

use of funds

Over half of funds obtained

from internal sources

80

60

40

20

0

-

-

-

Liquid

Assets

Other

Working

Capital

Fixed

Capital

Other

along broad industrial lines, and hope to

strengthen and extend this work in the

national income framework.

The new financial sector that has been

proposed likewise calls for further breakdowns. These should segregate, e. g., the

saving-investment transactions of the commercial banking system and of life insurance companies, in their entirety or on a

more selective basis.

In dealing with financial institutions, we

shall have in mind the role of the national

accounts as tools of general economic analysis. Information will be developed so as

to shed light on overall business conditions;

we are not concerned with additional financial detail, however essential it may be for

other uses such as the technical analysis of

the money and capital markets. The development of the latter type of materials is

in the province of other agencies.

Financial Transactions

For the classifying of financial transactions, we shall need a uniform scheme for

grouping financial assets and liabilities—

one that is both useful for broad economic

analysis and capable of being carried

through the major accounts on the basis of

the statistical information that can be made

available. Needless to say, this general

scheme should be supplemented (through

the device of supporting tables) by additional detail of analytical interest for

specific economic groups.

A kindred set of issues is concerned with

whether transactions within such groups

should be presented on a consolidated or

a combined basis and the extent to which

they should be netted or grossed. Here

again, conclusions stemming from the requirements of economic analysis should be

judged in the light of what is statistically

feasible.

Tangible Investment

Our program proposal for measuring

tangible investment calls for a comprehensive and consistent set of estimates of

private fixed capital formation, with breakdowns of the national total by type of commodity (structure or equipment), by purchasing industry, and by legal form of

investor. The estimates of inventory investment should also be improved. With a reasonable strengthening of present data

sources along the lines suggested by our

methodological review in Chapter 8, and

some additional information from the

plant and equipment survey, it would be

possible to make real progress toward these

goals.

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64 DEVELOPMENT OF THE NATIONAL INCOME MEASURES

vestment which are proposed will link these

series directly with the accounting framework outlined above. To the extent that

data by legal form can be cross-classified by

commodity and industry, the link will be

improved. The data situation limits the

possibilities in this direction, however, and

the intrinsic analytical interest of such

cross-classifications would not justify a

major data-gathering effort.

Capital Consumption and

Stocks

Another facet of our proposed work in

the saving and investment area is the development of capital consumption measures supplementary to those now included

in the national accounts. (This project, it

will be noted, implies alternative series on

net business incomes and savings also.)

As is well known, our present depreciation charges are mostly byproducts of

income tax accounting. They are based on

a valuation of capital equipment at its

cost to the current owner. These values

are depreciated on the basis of assumptions

as to useful life and conventions as to time

phasing which have no clear economic

foundations and are, moreover, affected by

such partly extraneous factors as changes

in the income tax laws or their administration.

For many analytical purposes it would

be desirable to put the measures of capital

consumption on alternative valuation

bases—for instance a current-dollar valuation which would make them comparable

with the current-dollar series on gross capital formation, or a constant-dollar basis

which would make them comparable with

the constant-dollar series. Also desirable

are measures utilizing time patterns of depreciation that are more realistic from an

economic standpoint than the present conventional ones.

Needless to say, formidable conceptual

and statistical problems are encountered

in pursuing this line of inquiry, but it

would be desirable to press forward toward

estimates of net capital formation—and of

the resulting net capital stocks—for the

economy as a whole and for its major

segments.

tial uses of the results in economic analysis

or imposed by the gaps in the basic information, however, we can probably elaborate our measurement of these items.

Judging from work we have done in the

past (see the March 1943 issue of the

SURVEY OF CURRENT BUSINESS), it would

seem feasible to supplement our existing

series on consumer purchases of durables

with associated measures of current use, as

reflected in their depreciation. These purchase and depreciation measures could

then be used, together with available

State and Local

Governments

Sources and Uses of Funds

Cumulative, 1948-57

BILLION DOLLARS

100 -

Fig. 29

8 0 -

6 0 -

4 0 -

20 —

0

Borrow- •

ing ;

ed. Grants

iii

Operating

Surplus

888

1i

mSssu

Rood l Construction

(incl. land)

I Increase I

I in Liquid|

Assets

Sources Uses

direct information, in making estimates of

net stocks of consumer durables.

As noted earlier, we have made some

progress in segregating government purchases of structures and equipment (see

tables VII-5 and VII-6 in the Statistical

Section), and we shall urge improvements

in data collection necessary to strengthen

these estimates (see Chapter 8).

Consumers and Government JJata Sources

We have no plans for extending our

present concept of capital formation to

embrace consumer durables or structures

and equipment acquired by government.

Within the limits suggested by the potenThe tables assembled in part V of the

Statistical Section provide a great deal of

material for the integrated study of saving

and investment just outlined. In particular,

the tables on personal saving and its disposition (V-9), the sources and uses of corporate funds (V-10 and Figure 28), and

the balance of payments on capital account

(V-ll) constitute the basis for the construction of the proposed saving-investment accounts for persons, nonfinancial

corporations, and international transactions.

Additional work on these tables will be

required, however, because, produced at

different times for different purposes, they

were not designed as parts of an interrelated accounting system. They must bq

made consistent with one another and with

the national income accounts.

Also, it may be noted that these tabled,

as they now stand, are statistically quite

rough in spots. Many of their deficiencies

and inconsistencies, which began to emerge

clearly only when they came to be viewed

as parts of a whole, can be remedied even

on the basis of existing information; intensive work along these lines is a major

aspect of the saving-investment study.

Basically, however, the statistical quality

of the tables will depend on the availability

of new and improved data sources. Most of

the data that are necessary are required

also for the strengthening of the statistical

foundations of our present estimates, as indicated in Chapter 8. Particularly relevant

are the comments relating to capital formation and to business incomes—broadening

the scope of the data-collection programs

needed for the latter to refer not only to

incomes proper but also to the surrounding

balance sheet items. In the area of unincorporated business, especially, the information now available is weak.

The accounts for financial institutions

will be based mainly on balance sheet information collected by the Internal Revenue Service and various regulatory agencies. The governmental account will be derived from Federal fiscal statistics and from

State and local fiscal statistics as summarized by the Census Bureau. The principal

data gaps are in the materials for certain

types of financial institutions and for State

and local governmental units.

A special statistical problem that should

perhaps be mentioned, as common to the

entire set of the proposed saving-investment accounts, is that of the "float"—

broadly defined to include checks in transit,

commercial instruments in the mail, and

goods in the process of being shipped. This

float threatens to disturb the synchronization of the various accounts even if the

basic statistical information is quite reliable

in all other respects. An effort will be made

to sort out the accounting procedures giving rise to timing discrepancies, and to utilize existing information as well as to suggest new data programs that can be used

to eliminate them.

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DIRECTIONS OF FUTURE RESEARCH 65

tal stocks, is the study of manufacturing

summarized in tables V-12 to V-15 of the

Statistical Section. (See Figure 30.) Several types of information are needed before we can proceed confidently to the

preparation of similar estimates for other

major sectors and for the economy as a

whole.

First, we need the comprehensive and

consistent set of data on gross investment

to which reference has already been made.

Most urgently required are the commodity

and industry breakdowns; the legal-form

information would also be helpful.

Secondly, much more information is required on the length of economic life and

on the time pattern of use of the various

types of structures and equipment. The

only comprehensive data now available on

this subject are the tabulations in Bulletin

"F" of the IRS. The appropriateness of

this information has frequently been questioned.

Thirdly, improved price information is

needed on capital goods items. Statistical

study of these is hampered by the pervasiveness of extreme quality change stemming from technological progress. This

whole aspect of price measurement is one

in which definite knowledge is largely lacking. Even limited projects—such as a precise evaluation of the bearing of standard

practices of price index number construction on the measurement of quality

change—would be useful.

With information of the three types

specified, it would be possible to make

much better estimates of net capital formation, and of capital stocks based upon

the perpetual inventory method, which involves the cumulation of successive increments of net capital change. Finally, it

would be desirable to have periodic benchmark data on the existing stocks of various

types of durable assets, against which the

results of the perpetual inventory method

could be checked.

REAL PRODUCT

BY INDUSTRY

This report also contains additional

breakdowns of real product by sector or

industry. Specifically, the total is subdivided into gross product originating in

farm and nonfarm business, in government, in households and institutions, and

in transactions with foreign countries. The

procedures by means of which these estimates are derived have been discussed in

Chapter 5.

Double Deflation Approach

In principle, constant-dollar gross product originating in each industry should be

determined by estimating the industry's

sales and inventory change in constant-dollars and deducting from the sum of these

its constant-dollar purchases of intermediate products from all other industries. If

measures so derived are consolidated, interReal Net Capital

Shift in Composition

Billion

200

100

80

60

40

20

10

1957

-

-

-

—

—

t t

1925

Dollars (ratio

Fig. 30

in Manufacturing

Accompanies Large Growth

scale)

Total ^^ ^

STRUCTURES ^^o^ ^ —

INVENTORIES J /

j LJ LJ 1 1_!

30 :

» - • * ^ EQUIPMENT

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 | | |

\5 40 45 50 55 60

END OF YEAR

The Office of Business Economics' basic

measure of the real GNP (table 1-2) is

derived by deflating the various final products by appropriate price indexes. The

breakdown yielded directly by the present

methodology is therefore essentially one by

type of commodity or service purchased.

In the present report we have extended

the hitherto published breakdowns of this

kind by providing comprehensive series on

total GNP by major type of product, and

new detail relating both to real consumption and fixed capital formation.

This type of breakdown of the real GNP

could be carried further by making comprehensive estimates of real national product by industry of origin. The precise

industry detail in which the estimates

should be prepared cannot be determined

without further statistical experimentation.

A reasonable goal, subject to modification

in the light of the data situation, would be

to make estimates for all industry divisions

with some additional detail for manufacturing.

industry sales and purchases of intermediate goods cancel out, leaving total industry sales to final users plus inventory

change—i. e., real GNP by type of product

in its presently published form.

The OBE measure of gross product originating in farming (see tables VI1-9 and

VI I-10, as well as Figure 31) represents

pioneering work along these lines. More

recently the Bureau of Labor Statistics has

developed measures of a similar type for

manufacturing. But the definition of

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66 DEVELOPMENT OF THE NATIONAL INCOME MEASURES

"gross" adopted by BLS is not the same

as the one underlying the gross national

product, and the BLS measure also departs from the national income accounts

framework with respect to its weighting

system and in some other ways.

As part of the proposed measurement of

real output, the methodology used for

farming should be extended to other industries. Preliminary study indicates, howsuits that are tolerable approximations of

the theoretical ideal.

Extant conventional-type measures of

industry output will need adjustment to

the definitional framework of the national

accounts with respect to industry classification, weighting, etc., as far as possible.

For a number of industries output measures do not exist and would have to be

constructed. These are generally lines in

Gross Farm Product

Has increased less than total farm output . . .

Billion 1957 Dollars

Fig. 31

40

30

20

10

0

TOTAL FARM OUTPUT

^-iil

; INTERMEDIATE

PRODUCTS CONSUMED*

because of the rising use of purchased materials

Percent

60

40

20

RATIO OF INTERMEDIATE PRODUCTS

CONSUMED TO FARM OUTPUT

Annual Average for the Period

* Includes feed, fertilizer, fuel, etc.

ever, that it will not be possible to universalize the approach in the foreseeable

future. There are many industries for

which data on sales, purchases, and prices

are too deficient to permit the application

of the full-fledged double-deflation approach.

Conventional Measures

For industries to which the doubledeflation approach cannot be applied, we

can resort to conventional-type measures

which reflect total industry output without

deduction of the intermediate goods consumed. There is a great deal of evidence

that this statistical shortcut will yield rewhich conceptual problems of output

measurement are particularly intractable

(e. g., trade and the services) and in which

the value and price or volume data necessary to make the calculations are sparse.

A genuine contribution could be made in

this area by a thorough sorting out of the

conceptual problems and by an intensive

utilization of the data sources at hand. Our

present measures of constant-dollar GNP

by type of product would probably be

benefited as an incidental result of this

work.

Data Needs

As in the case of other branches of national income work, the degree of success

will be conditioned by the supply of primary data. While we believe that a useful

measure of constant-dollar GNP by industry of origin can be constructed even with

the present data, it is obvious that the accuracy of the results as well as the industry

detail and time-breakdown in which they

can be prepared will depend on the quantity and quality of the basic data.

To improve the conventional measure

of total industry output and to calculate

similar measures for industries not now

covered, better value- and volume-data

are needed on industry sales and production. These require a further extension and

strengthening of the Census Bureau program of industrial census enumerations

and sample surveys. Progress in the measurement of output as properly defined in

the GNP framework—industry sales plus

inventory change, or production, less industry purchases of intermediate goods—

requires that improved information be

compiled on the latter item as well. Finally,

better price information specifically applicable to industry sales is needed for the

shortcut approach, and for the full-fledged

procedure comparable data relating to

industry purchases are required in addition.

Some of these data needs are touched

on in Chapter 8, with reference to the

measurement of final product. In connection with the present project, the requirements are more extensive, embracing data

for the estimation of intermediate product

flows (and the prices applicable to them).

GOVERNMENT

ACCOUNTS

With public receipts and expenditures

assuming such an important role in the

network of income and product flows, a

great deal of interest focuses on the government accounts. A considerable amount

of new information bearing on government

operations has been introduced into the

present volume. But much work remains

to be done.

The functional breakdown of governmental expenditures shown in the Statistical Section represents a major step forward. As we have already pointed out,

however, in this exceedingly difficult field

further research is needed even at the conceptual level.

Object-class details of expenditure,

which are needed in tracing the industrial

impact of changes in the rate and pattern

of government outlays, are better represented in the new set of tables than in the

old set. It is clear, however, that the

amount of concrete detail of this sort which

is provided still falls far short of that required for systematic analysis. Improvement waits on the availability of better

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DIRECTIONS OF FUTURE RESEARCH 6 7

primary data. To be most useful, the new

materials should be so classified as to facilitate their use in conjunction with statistics for other purchaser groups and for

sales by producers.

Another important project in economic

accounting for government is an analysis

of the changes in financial assets and liabilities associated with the surplus or deficit. This undertaking is closely related

to the saving-investment program outlined

above. Besides the financial data, the latter will also bring together certain information on inventories, public construction

and realty holdings, and public purchases

and stocks of durable equipment.

Our summary account for government

is in a sense a consolidation of the accounting records of many different governmental

entities. As such, it can be made more

meaningful by distinguishing the different

contributions which the various types of

public bodies make to the aggregates.

Separation of State from local government

transactions, for instance, would illuminate

not only the differences in fiscal position

which are characteristic of the two levels,

but also certain associated fiscal relationships between them which have become

very important in recent years.

Again, the special characteristics and

significance of public enterprises justify

more explicit accounting for these than

is now provided in the national income

and product framework.

Even within the broad categories of general government—Federal, State, or local—there are differences along institutional or organizational lines which call for

separate treatment, in the interests both

of economic and administrative analyses.

It is clear that for their own purposes each

such group of governmental institutions

will require accounts elaborated in a different direction. However, as their accounting systems have developed in recent

years—characteristically, toward greater

utility for managerial and policy purposes

as well as in their original function of enforcing fund accountability—certain common features have tended to emerge.

Some of these have likewise been found to

be appropriate from the standpoint of national economic accounting; and categories developed for the latter, in turn,

have proved helpful for designing forms

suitable for use by the public bodies themselves.1

In view of this evidence of a kinship of

objectives, we see a fruitful field of work

in the integration of the national income

accounts for government with those kept

by the governmental entities, and we hope

to contribute to this work.

1. See United Nations, Department of Economic

and Social Affairs, A Manual for Economic and

Functional Classification of Government Transactions (New York, 1958).

REGIONAL INCOME

WORK

The measurement of regional income

should be extended on a limited basis to

encompass areas of smaller size than the

States, particularly metropolitan areas. The

latter account for three-fifths of the Nation's tctal population and the establishment of income records for the larger, if

not all, of them would constitute a valuable tool for market research.

It may be noted that two of the most

troublesome features of local-area income

estimation generally are bypassed or minimized in the case of metropolitan areas.

First, farm income, which is extremely difficult to measure on a local-area basis, is

either absent or of very small magnitude in

metropolitan areas. Secondly, the "commuter problem" tends to be relatively less

important. Certain income components

(wages and salaries, in particular) are

measured at the point of disbursement

(place of work), while others (property income, for example) are estimated on a

residence basis. This situation raises especially knotty problems in small-area income estimation, for where workers reside

in one area and work in another the basic

income data for such areas are partly on a

"where-received" basis and partly on a

"where-earned" basis. Adequate data to

convert personal income wholly to either

of the two definitions are lacking. However,

the use of metropolitan areas as the geographic unit of estimation reduces the

problem since commuting across boundary

lines is generally not very great in the case

of these areas.

County income estimation is conducted

largely by State government departments

and university bureaus of business research, which are in a good position to assemble data for their States, to explore

local sources of information, and to carry

out the very detailed analytical work required. The method generally followed is

to secure total income as the sum of separately estimated components derived

through allocation of OBE State-wide

totals on the basis of the most relevant

available data.

Serving as a guide for such work by those

interested in particular geographical areas

is a "pilot" study recently completed by

OBE. This study was part of an economic

base survey of the Delaware River Service

Area we made for the U. S. Army Corps of

Engineers. Covering selected years of the

period since 1929, it provided estimates of

total income by type and industry as well as

per capita income. These were prepared

not only for the service area as a whole,

but separately for eight subdivisions. The

figures for the subdivisions, in turn, were

built up, for the most part, from detailed

information assembled for the area's 49

counties.

The Office of Business Economics does

not plan to engage in county-income measurement on a comprehensive or continuing

basis. To compile income series for the

more than 3,000 counties in the Nation

would require a very large increase in personnel. Moreover, it would be costly to

provide for and assemble here in Washington the basic data that would be needed

in such a project.

INCOME SIZE

DISTRIBUTION

The main objective of OBE in this field is

to improve the annual distributions of consumer units by size of family personal income. Aside from limitations of a purely

statistical character, the main shortcoming

of these distributions is their lumping together of all nonfarm families into a single

large and heterogeneous group. The most

important step that could be taken to make

the income-size materials more useful

would be the construction of separate distributions for families headed by entrepreneurs, by wage earners, and by others.

These three types of families differ widely

from one another in their economic status

and behavior and it would obviously be

desirable to have separate data for each.

Another type of information which

would be useful, especially for purposes of

interpreting the causal factors behind

changes in the size distribution, would be a

breakdown showing the principal sources

of income for the respective types of families at each income level. Illustrative estimates for all nonfarm families combined

are shown in Figure 32.

The basic data needed to extend our

estimates in these two directions are of

essentially the same character as those required to improve the reliability of the

present distributions. The suggested increase in the amount of detail provided by

family type, and that on income sources,

would of course call for statistically stronger

basic data than do the summary estimates

now published.

These summary figures are derived by integrating data from Federal individual income-tax return tabulations with statistics

from Census and other sample field surveys

of family income, and adjusting the results

to control totals based on the OBE measures of the various types of personal income. Use of the tax return data requires

so-called "matching studies," which relate

the incomes of sample consumer units to

the tax returns they file and thus provide a

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68 DEVELOPMENT OF THE NATIONAL INCOME MEASURES

means for converting distributions of tax

return incomes to a family income basis.

Also required are IRS audit studies yielding up-to-date information on underreporting of income to the tax authorities. The

sample survey information requires improvement with respect to the handling of

families at the lower end of the income scale

and on farms. In addition, it should show

in greater detail how the principal types

of income distinguished in our control

totals are distributed by family income

level.

which may be expected from recent technical progress in the making of such surveys,

experience indicates that the results as

tabulated will diverge from the independently derived totals for the Nation. It

would seem appropriate for the National

Income Division to reconcile and integrate the survey-based distributions with

these totals, as we now do annually with

the basic survey and tax return data on

the distribution of income.

As to causes, the family income distribution may be viewed as reflecting three

Major Sources of Family Income

By Income Groups in 1955

Families

with

income of—

$10,000

and

over

$6,000

to

$9,999

$4,000

to

$5,999

under

$4,000

M

• I WM 1 II

Fig. 32

Percent of type of income

• 100

60

20

Dividends & Nonfarm

Income From Business &

Estates & Professional

Trusts Income

Wages &

Salaries

Transfer

Payments

Note.-Distribution is for nonfarm mu/f/person families by size of personal income before tax.

Primary data and resources permitting,

it would be desirable to provide additional

tools for relating our income distributions

to the economic variables which are influenced by them, on the one hand, and to

the causes that underlie them, on the other.

The most important project under the

first of these headings would be one

yielding estimates of taxes, consumption,

and saving for the families in each income

group. To carry out such a project adequately would require comprehensive new

field surveys of the type which have been

conducted, e. g., by the Bureau of Labor

Statistics among the urban families in its

Survey of Consumer Expenditures in 1950.

Despite the improvements in reliability

factors, each of which in turn is determined

by different basic economic forces and

therefore deserves separate study. One is

the distribution of individuals' receipts of

specific types of income, classified directly

by the size of such receipts. The second is

the relative importance of the various types

of income in the total. The third is the pattern in which individual recipients of the

various kinds of income are combined into

family units.

Information and techniques should be

developed by which these factors could be

isolated and their specific effects on the

final family distribution traced and evaluated. About the first and last of them, in

particular, not enough is known. The

matching study called for above would

cast light on how individual recipients are

combined into consumer units. Key primary data on the size distributions of the

various types of income should be obtained

from tax returns and the decennial census

schedules—mainly improved detail of each

kind of income distributed by its own size

and, for the tax returns, crossbreaks of

employees' as well as proprietors' earnings

by broad occupational groups.

Reference above to family personal income as the basis of our distributions

should not be taken to imply final acceptance of this concept as the only one for

all purposes. To the contrary, we should

like to experiment with a number of variant bases—distinguished, e. g., by the inclusion of capital gains or by the exclusion of imputed items—which may prove

superior in one connection or another.

More broadly, business practices in accounting for income naturally change over

time, in response to tax legislation and

other institutional shifts; and these changes

affect our distributions. While it is not in

general possible to make adjustments

which will eliminate such effects, continued

study of them is important for a proper interpretation of our statistics.

INDUSTRY SALES AND

PURCHASES

The central objective of national income

statistics is to depict the economic process

in terms of interrelated income and product flows. The project to be discussed, like

the preceding ones, would make a significant contribution to this goal. It differs

from them, however, in that the resources

required for its successful inplementation

are on a quite different scale from those

which would be sufficient to make substantial progress in the other directions that

have been outlined.

Utilizing the accounts in their present

form, we can study income as originating

in production in the various industries,

trace the way this income accrues to the

major economic groups—businesses, consumers, and government—and see how

this basic flow is modified by taxes and

transfers. It is also possible to observe the

spending of incomes, so modified, for current purposes (broadly defined to include

personal consumption as well as government purchases of goods and services).

The channeling of the remainder of income—i. e., saving—into investment demand is not now shown in our tables. The

study of saving and investment outlined

earlier is intended to account clearly for

this stage in the economic circulation, thus

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DIRECTIONS OF FUTURE RESEARCH 69

rounding out the statistical picture of how

income is transformed into final demand.

To complete the depiction of the circular process, it is necessary to show the

manner in which this demand in turn

generates incomes in the various industries

of the economy. The study of industry sales

and purchases is intended to provide this

link, by showing how final demand is translated into demand for the products—including intermediate goods—of the various

industries.

The provision of this information within

the framework of the national accounts

would enhance their usefulness in the

analysis of general business conditions.

Also important, it would strengthen them

in their capacity to throw light upon the

effect of changes in total demand or its

composition upon particular industrial

markets. The analysis of changes in industrial supply and cost conditions would be

facilitated as well.

To see more completely the essence of

the new statistical information and its relation to the information we now provide,

it is best to envisage it in terms of an operating account for each industry group

selected for analysis.

The credit side of this account would

show production as the sum of sales and

inventory change, with sales subdivided

into (a) intermediate products going to

each of the other industries and (b) final

products disposed of in each major market

now distinguished in the regular GNP

tables—consumer, fixed investment, government, and export. The debit side of the

account would show purchases of intermediate goods from each supplying industry and from abroad, income originating

(wages, profits, etc.), indirect business

taxes, and depreciation and kindred capital

consumption allowances. The sum of the

last three groups of items, it may be noted,

measures gross product originating in each

industry.

Industry income and gross product, on

the one hand, and direct industry sales in

final markets, on the other, would thus be

shown in their interrelation with the network of other industry sales and purchases.

We would then have a basic framework for

analyzing repercussions of changes in final

demands not only on incomes generated

in the industries directly affected but, also,

through changes in the current-account

purchases of these industries, on the income flows from other industries which

contribute to the production of the final

output.

The accounting relationships of the new

statistical information to that we now publish emerge most clearly in terms of the

consolidation of the industry accounts. Industry sales and purchases of intermediate

goods would cancel, and (with imports

netted against exports) the credit side of

the consolidated account would show gross

national product in its conventional form

as the sum of sales to final markets and

inventory change; the debit side would exhibit the same magnitude measured in

terms of national income, business taxes,

and capital consumption allowances.

The foregoing very general sketch may

serve to bring out the essence of the new

information and show how it fits into the

present framework of the national accounts. Several more specific points should

also be noted.

1. In the development of the new information, it would be simpler from a

statistical standpoint to confine the crossbreak by purchaser and seller to intermediate goods, showing the flow of capital

goods by seller industry only, i. e., without

providing a cross-classification by purchaser industry. The cross-classification by

purchaser would be of great interest, however, and every effort should be made to

obtain it.

2. Decisions have to be made as to the

industry detail that is to be provided. For

the purposes of the type of economic analysis to which national income statistics

are best adapted, a reasonable goal would

be a fairly aggregative type of presentation distinguishing major industry divisions

and two-digit groups within manufacturing. It would be desirable, of course, to

set the project up in such a manner that

the totals shown would be capable of

further disaggregation for uses in which

this is necessary.

3. Benchmark calculations should be

made for years covered by basic census enumerations, but the series should be maintained on an annual basis, although in a

more condensed form if this is indicated

by the limitations of the primary data.

4. The working out of a detailed scheme

for handling transactions among industries

poses several difficult issues. For instance,

for many purposes it is desirable to depart

from the depiction of the actual passage

of commodities from producers to distributive industries and from the latter

to final users. It may be more advantageous

to show these users as purchasing directly

from producers and as making separate

payments to the distributive industries

(equal to the gross margins these industries

add to the cost of goods purchased).

Similarly, for some purposes it is desirable to show the amounts of raw materials

consumed during the accounting period,

rather than the amounts purchased, by

the various industries. (As can be seen, this

modification would involve opposite adjustments in the industry measurement of

inventory change.) Similar departures

from the actual flow of goods and services

are indicated for some uses of the statistics

in the case of secondary products and imports. These and other procedures should

be carefully reviewed in the light of the

major analytical uses to which the figures

are to be put and of the primary data available to make the estimates.

Data Gaps

It should be stressed that a large body of

additional facts is needed to produce reliable estimates of the type outlined. Many

of these facts represent further, detailed

elaboration of basic information which

has not so far been produced in a satisfactory fashion even in the summary form

in which it is needed for the present

national product estimates.

The latter needs have been indicated

in Chapter 8 in the discussion of our consumption and capital formation measures.

The requirements of a cross-classification

of purchases and sales among industries

are the most exacting, because this involves

the most comprehensive and articulated

presentation of product flows.

No attempt will be made here to outline

in any detail the data necessary to carry out

the project. The most important data

sources are the Census of Manufactures

and the Annual Survey of Manufactures,

and this reporting system should also be

used to provide much of the additional information that is required. Broadly speaking, we need information on manufacturers' sales by type of purchaser, improved

information on materials consumed and on

investment by industry, and improved data

on the product detail of shipments. Similar

information will be required for nonmanufacturing industries; it should be obtained

mainly through regularization, integration,

and expansion of the Census program.

Moreover, the problems met in deriving a

consistent industry classification of national

income on an establishment basis (see

Chapter 8) also arise in the present project. In terms of the new industry accounts

that have been sketched, what is involved

is a measurement of income originating

that is consistent both internally and with

the surrounding sales and purchases

estimates.

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DATA SOURCES AND PROCEDURES

7. Summary Evaluation of the

Postwar Estimates

The two chapters in this part of the volume deal with the statistical foundations of

the national income and product estimates.

Following a general discussion of the

scope and results of the statistical revisions

that have been introduced, an account is

provided of the data and procedures used

in preparing the new postwar estimates.

This covers each of the principal income

and product components, both annual and

quarterly. At the end of Chapter 8 we list

the major deficiencies in the basic data

sources available for national income work,

and give recommendations as to how these

sources could be strengthened.

This focus on methodology and revisions is desirable because a knowledge of

them is necessary for an assessment of the

reliability of the national income and product estimates. It is obvious that such an

assessment is of first-order importance, both

from the standpoint of facilitating informed uses of the figures and of promoting

further improvements in them. However,

the fact that it must derive primarily from

a knowledge of the statistical basis of the

estimates perhaps requires elaboration.

This can be set forth briefly through a series

of generalizations drawn from fuller discussions of this general subject which have

been included in our previous national income bulletins.

ASSESSMENT OF

RELIABILITY

Statistical data on the United States

economy are not collected in the framework of a coordinated program designed

for income and product measurement. Our

estimates must be constructed from an extensive array of diverse information which

for the most part is not directly or wholly

suitable for this purpose, and which must

be processed to adjust for differences in

definition and to fill gaps in coverage. Although basic information is drawn from

numerous private sources, the mainstay of

the national income and product estimates

is government-produced statistics; these

include not only censuses and other general-purpose economic information, but

also many types of data that become available from government agencies as a byproduct of their administrative functions.

The essence of OBE's task in the national

income field is to assemble these relevant

diverse data and to adjust them, through

estimation, in a step-by-step buildup of the

income and output measures. Such a detailed statistical approach is followed

chiefly for the purpose of maximizing reliability.

The reliability of the national income

and product estimates cannot be assessed

quantitatively. These estimates incorporate a great deal of basic data which may

be presumed from their general characteristics to be "reliable," but for which the

extent of accuracy cannot be specified in

exact terms. Beyond such data, the area of

uncertainty widens. For they are buttressed

by countless other data of differing quality,

scope, and relevance; and resort must also

be had to indirect procedures in the attempt to overcome the gaps or deficiencies

in the statistical source materials available

for national income estimation.

It is to be stressed, too, that to know the

degree of probable error in individual figures would not be sufficient. More often

than not, the concern would be with the

error in relationships among the figures,

particularly over time. Throughout the

period since 1929, the amount and quality

of basic data have varied widely among the

various income and product components.

Since, then, the degree of error in the

national income and product estimates is

not subject to quantitative determination,

the assessment of reliability must be based

in large degree on an analytical appraisal

of the data and procedures underlying the

estimates and of the record of revisions. The

primary aim of the methodological descriptions contained in the present volume, as

well as in the preceding income supplements, is to provide the basis for such appraisals. The endeavor is to portray the

essential character of the estimates—focusing on those aspects which bear most directly on accuracy—and to provide our

frank judgments concerning the adequacy

of the various series.

To round out the points which have been

sketched above, some further observations

should be made:

No other approach to national income

work would make feasible the assessment

of error mathematically. Suppose, for instance, that—in sharp contrast to present

procedure—the national income and product measures were derived wholly from

samples. Quantitative expression of "probable error" would then be possible. In itself,

however, this would involve an estimate,

and hence measure of uncertainty, because

of a lack of knowledge of the true universe

and its composition; and, more important,

it would not cover errors due to faulty reporting of information by respondents, negligence on the part of enumerators, etc.

The errors stemming from such sources may

in practice be larger than those which are

attributed to sampling itself. Moreover,

they are most difficult to determine and

hardly ever can be quantified.

Inability to measure error is not, of

course, confined to the field of national income but encompasses the entire range of

economic statistics. It is also relevant to

note that work in national income—in fact,

in the social sciences generally—seldom requires a rigorous specification of probable

error. Further, studies in these fields do not

depend for their validity and usefulness on

statistics having a high degree of exactitude. The national income and product

figures are of generally good quality and,

despite the inevitable margin of error in

them, are found widely useful in economic

analysis.

Of final note, analysis of reliability on

any detailed and comprehensive scale is

seldom, if ever, called for. With respect

to most specific applications of the national income and product estimates, reasonably careful study of the relevant descriptions of methodology and concept will

give a clear indication as to whether the

estimates are suitable for the intended

use.

Such a study will usually prove rewarding. It will lead to more effective utiliza70

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SUMMARY EVALUATION OF THE POSTWAR ESTIMATES 71

tion of the data by channeling them into

uses warranted by their nature and degree

of accuracy. It will also forestall many misapplications of the data as, for example,

when the informed user becomes wary of

drawing seemingly significant conclusions

from small changes in a series which are

obviously well within the margin of error.

We turn now to a discussion of the statistical revisions which have been incorporated into the present volume.

STATISTICAL

REVISIONS

Recent-year estimates of national income and product are based on incomplete data and are revised as additional

information becomes available. For most

components there is a significant basis for

revising the initial figures. An important

example is furnished by those components,

such as business earnings and inventories,

which are affected by the lag in the availability of tabulations from Federal income

tax returns.

Periodically, statistical revisions must extend further back to incorporate census information obtained at intervals which can

range up to 10 years. Such benchmark information finds widespread use in our

work, especially in building up the product

side of the accounts. Finally, in certain instances improved sources and/or methods

may become available which call for revisions over an even longer period of years.

Scope of Current Revisions

In this report, our estimates have undergone a major review occasioned principally by the availability of tabulations

from the 1954 Census of Manufactures and

Census of Business. These sources have

been utilized to prepare new benchmarks

for consumer commodities and producers'

durable equipment, according to the

"commodity flow" procedure. The y

yielded requisite benchmark data also for

numerous individual series of consumer

expenditures for services. While the 1954

censuses thus afforded a comprehensive

basis for making necessary revisions of the

gross national product, they had limited

effect on the national income. The latter

is dependent on industrial census data only

in minor degree; in the main, it rests on

statistics collected under the administration

of the social security and Federal incometax systems.

The preparation of new benchmarks for

important components of the gross national

product for 1954 meant that our tables

had to be "opened up" for a back period

of years, so as to provide—by means of

"interpolation"—annual series for those

components which tied in with both these

benchmarks and the previous ones for 1947.

Therefore, the opportunity was taken to

revise our estimates on a broad scale—to

incorporate also noncensus data which had

become available since the last major revision four years ago, and to carry through

desired improvements in estimating techniques.

The series on corporate profits and business and professional proprietors' income

were significantly affected by this extension

of the scope of the revisions; the estimates

of wages and salaries were strengthened

for several of the industry groups and refined in still other respects; special revisions

of farm income, embodying Census of

Agriculture data, were prepared by the

Department of Agriculture; the revisions

of residential construction which were

issued last year by the compilers of the

data were incorporated into the GNP; and

other improvements were effected as all

of the many income and product components came under careful statistical review

and appraisal and were altered wherever

there was felt to be an appreciable need.

In addition to this more basic revision

of a periodic nature, the previously published national income and product figures

were subjected to the same kind of current

review and alteration as are regularly associated with the July National Income

Number of the SURVEY OF CURRENT BUSINESS. In this, revisions of recent-period

estimates—usually covering 3 years—are

incorporated on the basis of statistical information becoming available during the

past year.

The statistical changes which are presented in this report extend from 1946. We

went back that far in order to take account

of revisions in the residential construction

and farm income series. A few other components have been modified for 1946 and

1947, but for most the changes begin

with 1948.

A reworking of the figures before 1946

was not undertaken because the case for

doing so was not compelling. We revised

back to 1929 in the 1954 National Income

supplement, and any further changes at

this time would have fallen generally in

the category of minor refinements, since

the basic data available for the earlier

period already have been mined rather

thoroughly. Also, we were mindful of the

inconvenience which revisions, whatever

their merit, cause the users of the statistics.

All in all, we have attempted to put the

national income and product estimates for

the entire postwar period on as solid a

statistical footing as is possible at the present time. This generalization applies not

only to the annual figures, but also to the

quarterly series, which likewise were reviewed comprehensively and in a number

of significant instances basically recast as

to statistical methodology.

As a result of this work, the statistical

basis for estimating the GNP was put substantantially on a final basis through 1954.

The component estimates through that

year now incorporate a very large bulk of

the basic data that may be expected from

present statistical sources. The principal

exception relates to consumer expenditures

for services, for which one-third or more

of the total awaits another decennial

benchmark from the 1960 Census of Population and Housing. Also to be noted is

that data collected in the Census Bureau's

1956 National Housing Inventory called

into question the post-1950 estimates of

residential construction, and that the

issue—as discussed later—has not reached

definitive solution pending a necessary

special survey.

For the year 1955, the status of the GNP

figures is about the same as that described

for 1954 except that the estimates for consumer commodities, and probably producers' durable equipment, will be affected

somewhat by the future incorporation of

results from the 1958 manufacturing and

business censuses. The estimates of gross

national product for 1956 and 1957,

especially the latter, are decidedly more

preliminary.

The basis for revision of the national

income is likewise rather complete through

1954 and 1955, with subsequent-year

figures more tentative. The farm income

series, however, may be revised further in

the light of studies now in progress; and

there is always the possibility that for some

other components new data may become

available to suggest a modification of the

past record. This latter generalization, of

course, applies to the entire range of statistical series covered by the field of national

income and product.

Overall Results

It is time now to ask what this substantial volume of revision work has contributed to knowledge about the reliability

of the national income and product

figures. What has been learned about the

statistical basis of the estimates

 r this

most recent effort to improve the

 r i' We

shall pursue this question along general

lines, and against the background of our

previous experience; the provision of specific information about statistical problems

and methodology, and about the extent to

which the component series have been

altered, is reserved for the next chapter.

In the 1954 National Income supplement, after having completed a similar

statistical review, we reported that the revisions which had been made in the initial

estimates of national income and gross

national product were very moderate—

generally less than 1 percent. The results

this time are similar.

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72 DATA SOURCES AND PROCEDURES

For the years 1946-54, the differences

between the new income and product

aggregates and the figures they superseded

are quite small. For the subsequent period,

the revisions are somewhat larger, though

still moderate—as exemplified by the GNP

for 1957, which at $440 billion on the new

basis exceeds the previous figure by $6 billion, or somewhat more than 1 percent.

This increase in level dates largely from

1955, with the revised estimates serving to

accentuate the picture of strong recovery

already shown for that year. The 1955-57

expansion in GNP, as well as in the income

flow, recorded by the revised figures is

closely similar to that previously measured.

In the new estimates of gross national

product, the incorporation of 1954 census

data and of other information resulted in a

replacement of components forming about

two-fifths of the total. The smallness of

the percentage revisions in aggregate GNP

thus constitutes favorable evidence regarding the quality of the extrapolating

procedures that are used pending the

availability of census information.

We would first point out that an outcome of this general type had been expected. This was because the national income, which is a reliable measure dependent on census data only in minor degree,

had confirmed the gross national product

estimates in the interim period—through

the moderate size of the statistical discrepancy. The advantages of estimating

income and product flows in an interrelated accounting framework are clearly

apparent in this connection.

But this favorable outcome, although

anticipated, must be qualified. First, while

the revisions of total GNP were moderate,

the underlying statistical situation is not so

adequate as might be implied. As the next

chapter explains, we encountered certain

difficulties in the estimation of consumer

expenditures and producers' durable equipment, and found it necessary to make reductions totaling $4*/2 billion—or a little

over 1 percent of GNP—in the initial calculations of these series for 1954 when

collateral information indicated they had

turned out too high. While we are reasonably sure that the decisions made in this

connection were in the nature of improvements, the implications for reliability of

the GNP are not the same as if the total

had been added up directly from benchmark information not subject to significant

limitations.

A second qualification stems from the

fact that extrapolating errors were generally larger in components than in the

total GNP. In itself, this fact conforms

with a well-known tendency in national income and other fields of estimation, and

hence is not surprising. In the work just

concluded, however, the revisions in numerous component series were quite sizable,

and the results on this score were less satisfactory than in 1954.

A third qualification regarding the moderateness of revisions in the GNP total

relates to a point already noted—that not

all of the basic data that are relevant to its

calculation have yet become available.

However, setting aside the estimates for the

most recent year or two, consumer expenditures for services are probably the most

"preliminary" major component; on the

basis of past experience, subsequent revisions in this series are unlikely to have

substantial effect on the gross national

product total.

Implications for Reliability

The results of the revision work noted

above may thus be said to have a twofold

implication for reliability of the estimates.

First, they confirm our belief, expressed

on page 64 of the 1954 Supplement, that

"the estimated annual totals of gross national product, national income, and personal income are subject to only a small

percentage of error." In this connection,

it is well to remind that an error of $4

billion, while large in an absolute sense, is

still only 1 percent of our greatly expanded

GNP.

At the same time—and this is the second

point—the state of the basic data for estimating some components of gross national

product is a source of definite concern. The

statistical review of the postwar figures

pointed up an impreciseness in the overall

totals of consumer commodity expenditures

and producers' durable equipment; and,

beyond this, the revisions in numerous parts

of these important GNP components were

sizable. The next chapter includes a discussion of the difficulties encountered in

these phases of the work, and of the steps

that have been taken to help remedy the

deficiencies and to minimize errors. The

success achieved in this direction could

only be partial, and there remains a clear

need for better statistical data on certain

of the product flows.

Other lessons derived from this comprehensive statistical effort may be commented

upon briefly. One such lesson serves simply

to affirm the advisability of the step taken

4 years ago in reducing the amount of detail shown for personal consumption expenditures, net income of unincorporated

businesses, and several other series. A primary reason for this move was the fact that

the basic data situation had not improved

in line with our expectations in 1947 at the

time the original system of tables was established.

How much detail to publish or release is,

of course, a problem of long standing. We

have reexamined this problem in connection with the expansion of statistical tables

for this report, and have attempted to

strike a balance between the needs of analy

sis, on the one hand, and the undesirabil

ity of issuing weak estimates, on the other

The material which has been added is believed to be sufficiently reliable when usec

appropriately. Provision of any significant

amount of additional detail must await further development and improvement in the

basic data.

In actual fact, the national income and

product series are published—and have

been in the past—in somewhat greater detail than is warranted by the statistical reliability of some of the ultimate components. While it would be hazardous to

attach precise significance to the level and

movement of these components, offsetting

errors make it feasible to recombine them

into reliable subtotals differing from the

published ones and better adapted to serve

specific types of economic analysis. It is in

order to facilitate such judicious recombinations that some of the estimates (in particular, recent-year detail on the industrial

origin of some of the income shares and on

the product breakdown of some of the con

sumer commodity and service flows) art

published, and one should be aware that

the use that can be made of these series in

isolation is limited.

There is one more observation to be

made regarding the further experience

gained in this latest work—namely, that it

has underlined the fact that the measurement of income and product on a lessthan-annual basis encounters a number of

difficulties that are particular to shortterm estimation. To use the quarterly and

monthly measures effectively, one should

be aware of their characteristics. The description of these measures which is provided in the next chapter is intended to be

of some help in this regard.

Conclusion About Revisions

In conclusion, the preparation of this

volume has served to reaffirm our belief in

the manifold usefulness of the national income statistics. Inadequacies in these statistics have seldom proved of material consequence from the standpoint of general

economic analysis. The estimates of national income and product have given a

comprehensive view of the performance of

the economy which in no major sense has

been altered by statistical revisions.

Nevertheless, the work on this volume

has pointed up a number of areas in wliich

the figures require strengthening in order

to improve their usefulness for more particular purposes. This strengthening is especially desirable in view of the increasing

demands which are being placed upon the

income and product estimates. It can come

about only through the provision of better

basic data—the raw materials from which

the estimates are constructed—and this, in

turn, would appear to be quite feasible.

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DATA SOURCES AND PROCEDURES

8. How the Estimates

Were Made

The broad purpose of this chapter is to

advance knowledge about the reliability of

the GNP and national income measures

through a discussion of the sources and

methods used in deriving their components. We shall report on the statistical

problems which were encountered in making the postwar estimates embodied in this

volume, and how these problems were

handled.

The 1954 National Income supplement*

contains a full account of the methodology

employed in estimating the various income

and product components. Given this background, our present purpose will be served

best by bringing the 1954 description up to

date on a summary basis—amending it or

revising it wherever necessary, and pointing

up those aspects of the postwar methodology which bear particularly on the quality

of the estimates.

Scope of chapter

We shall take up first the annual gross

national product estimates; then, the various components on the income side of the

accounts. The third section covers the

quarterly and monthly series, and contains

information on methodology not previously recorded in any of our bulletins.

The chapter concludes with a listing of

major data gaps brought out in this review

of the postwar income and product series,

together with recommendations for the

elimination of these deficiencies.

The ensuing account of methodology

does not deal with either the State income

or size distribution series. The statistical

basis of the former is covered fully in our

recent volume on Personal Income by

States Since 1929. In that volume, a summary discussion of the derivation and reliability of the State series is provided as

part of the chapter titled, "A General View

of the Estimates"; and this is followed by

a detailed explanation of sources and meth1. National Income—1954 Edition, U. S. Government Printing Office, Washington, 1954, $1.50.

ods which serves to document the earlier

overall appraisal. A careful description of

the basic methodology used in the size distribution estimates may be found in the

special supplement, Income Distribution in

the United States, and this was up-dated

in the April 1958 SURVEY OF CURRENT

BUSINESS.

New IRS report

On the whole, data sources for estimating the national income and product have

remained much the same in the past few

years. Such specific changes as have occurred are noted below, but one new valuable source of information which was

designed to strengthen several components

of the national income accounts may be

singled out at this time. Reference is had

to Business Indicators, a series of reports

by the Internal Revenue Service which

was initiated in the spring of 1958 for the

purpose of providing an advance release

of key statistical information regularly

published in Statistics of Income.

The Business Indicator reports issued

this year provided data for 1956, classified

by industry groups, on net income, sales,

Fig. 33

Relation of Income and Product Aggregates, 1957

Depredation,

etc. $$9 Bit

Indirect Business

Taxes $3f Bil.

Notional

Income

•$364 Sit

Undistributed

Earnings

$44 BU.

Distributed

Earnings

$320 ii l

Transfer pQym&t&s?

Distributed

Earnings

$320 Bil,

Taxes

$43 B&

Personal

Income

Alter Taxes

$305 Sit

Gross

National Product

$440 Billion

National

Income

$364 Billion

Personal

Income

$348 Billion

Disposable

Personal Income

$305 Billion

* Including $6 billion of net interest paid by Government

73

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7 4 DATA SOURCES AND PROCEDURES

taxes, inventories, and other items taken

from the Federal tax returns of corporations, sole proprietorships, and partnerships. These tabulations, which were made

available more than a year ahead of the

regular schedule, were derived from samples used to produce Statistics of Income

benchmarks.

The specific industries and items selected for Business Indicators were those

for which "adequate and timely data are

not available from other Government

sources and could be obtained at a minimum cost from returns filed with the Internal Revenue Service." On the basis of

these criteria, agriculture, forestry, and

fishery were excluded from unincorporated

businesses, and manufacturing from corporations. The main points of note here are

that the Department of Agriculture is the

regular source of the necessary estimates

for farming, and that the Securities and

Exchange and Federal Trade Commissions, through their Quarterly Financial

Survey, furnish current sample-based data

for manufacturing similar to the special

tabulations for nonmanufacturing corporations derived by Business Indicators.

The precise degree of reliability of these

new data will not be established until a

comparison between them and the final

tabulations from tax returns is available

for a number of years. But there can be

little doubt that they represent a substantial improvement over the type of interim

information that had to be utilized until

now.

Strengthening the

Gross National Product Measure

The statistical review of the gross national product, as already indicated, centered mainly in personal consumption

expenditures and producers' durable equipment. Following a description of this

larger task, we take up the changes found

necessary in the other components.

For residential construction, the revisions embodied in the new data issued last

year, and now incorporated into the GNP,

were sizable. For business inventories, foreign transactions, and government purchases, however, the statistical modifications were, on the whole, relatively minor.

CONSUMER

EXPENDITURES

The 1954 Census of Manufactures and

Census of Business provided an extensive

basis for the preparation of new benchmark figures on personal consumption expenditures. The revision work on consumer

expenditures for 1954 may be viewed as

consisting of three phases:

1. The "commodity flow" method was

used to derive estimates for individual commodity groups which together formed over

four-fifths of total consumer commodity expenditures. This method earlier had been

applied biennially for odd-numbered years

of the 1929-39 period and for 1947—years

for which a Census of Manufactures, the

prime requisite statistical source, had been

taken.

As described in the 1954 National Income supplement, the commodity flow

procedure involves numerous estimating

steps. In broad outline, these entail securing commodity data at producers' prices on

the output of factories, farms, and fisheries; segregating for each commodity the

portion of total output not requiring further processing, and destined for personal

consumption; and then passing from finished output at producers' prices to final

costs to consumers by tracing the commodities through the various stages of the

distributive system. Of necessity, the commodity flow method depends on the periodic industrial censuses—including those

of retail and wholesale trade—to provide

most of the basic information for separating consumer commodities from total output, tracing their flow, and measuring their

costs of distribution.

2. For a large number of individual

items of consumer expenditures on services, benchmark estimates were prepared

for 1954 on the basis of information collected for that year in the Census of Business. Such items make up about one-sixth

of aggregate consumer outlays on services.

3. All component series of consumption

expenditures, both commodities and services, not affected by the availability of 1954

census materials were nonetheless given a

careful statistical review. While the importance of this part of the work should not

be exaggerated, many such series—particu

larly in the area of the services—were im

proved through the incorporation of dat;

which had become available since the las

major revision 4 years ago. A significan

example is afforded by the professiona

services category, where Internal Revenue

Service tabulations of the sales of proprietorships and partnerships were utilized tc

indicate the movement of consumer expenditures. And a particularly noteworthy

improvement centers in the development of

new figures on the automobile "allocation"—the proportions by which total (private) sales of passenger cars, gasoline and

oil, automobile repairs, and certain other

items are subdivided between consumers

and business.

Adjustment of the Total

In general, then, it may be said that

personal consumption expenditures for

1954 were revised by the usual methods.

The processing of Census of Manufactures

and Census of Business data largely followed established procedure; as compared

with the revision work that was done 4

years ago, the study of automobile allocations was the principal new feature.

Some of the more specific aspects of

methodology underlying the new 1954

estimates of consumer expenditures will be

described presently. We discuss at this time

the broader problems that were encountered in the estimates.

The first difficulty arose when the numerous separately estimated items of consumer expenditures were added up for

1954 and the resulting total appeared too

high. As will be seen, the problem was not

major in terms of the broad aggregates of

personal consumption and gross national

product, particularly since a reasonable

solution of it became evident. Its impact

within the accounts, however, was more

substantial—as, for example, with respect

to its implications for the personal saving

estimates. Our explanation of the handling

of this matter, which involved fairly technical issues, is developed at some length in

the interest of clarity.

APPRAISAL OF THE PROBLEM

After the estimates of consumer expenditures for the individual series had been

totaled for 1954, and then fitted into the

national income accounts, two results were

immediately apparent:

1. The "statistical discrepancy" was a

sizable positive figure, indicating that gross

national product as estimated from the expenditure side of the accounts exceeded

gross national product derived as the sum

of incomes and other charges.

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HOW THE ESTIMATES WERE MADE 75

2. The difficulty appeared to center in

an imbalance between income and consumption. This was indicated by the fact

that personal saving obtained by subtracting personal consumption expenditures

from disposable personal income was considerably lower than the direct estimate

of personal saving prepared by the Securities and Exchange Commission, whereas

the latter was closely approximated by the

OBE "alternative estimate'5 of personal

saving. With reference to table V-l in the

Statistical Section, this alternative series

is equal to gross investment less government surplus and less gross private saving

other than personal saving. Statistically, it

is obtained most readily by adding the statistical discrepancy to the more conventional (income less consumption) measure

of personal saving.

At this stage, a detailed statistical review

of the entire set of income and product

estimates was undertaken. This, however,

did not appreciably affect the initial results. That is, our reexamination of the

individual income and product series in

the attempt to trace the source of the statistical discrepancy did not uncover substantial instances in which the initial methodology was regarded as faulty.

The problem thus remained, and in approximately the same dimensions. We were

faced with two possible courses—to permit

the estimates to stand, that is, to publish

them with their obvious blemishes; or to

adjust the figures so as to eliminate what

we considered, upon analysis, to be the

source of difficulty even though it could

not be located specifically, or demonstrated

in terms of actual statistical methodology.

The latter course seemed clearly preferable ; and the decision was reached to bring

the national income accounts into better

conformity by reducing the initial estimates of consumer expenditures. We may

spell out to some extent the considerations

that led to this decision.

First, we accepted as being probably correct the above-noted indication that the

statistical discrepancy reflected estimating

errors in the general area of personal income and expenditure. An opposite conclusion would have implied that both the

SEC direct estimate of personal saving and

the OBE "alternative" estimate were

grossly in error, despite their good agreement with each other; and that the statistical trouble spot in the figures was in

the area of gross investment and nonpersonal saving—a situation which seemed less

plausible than that entailed in the assumption that the principal error lay in the

personal saving estimate derived as the

difference between disposable income and

consumption.

The latter estimate, because it is obtained as the residual between much larger

totals, is subject to substantial percentage

466759 0—59 6

error. The OBE "alternative" estimate of

personal saving is also a residual measure.

It is not possible to say which of these two

residuals, in general, is likely to be the

more reliable, although in the present instance of the 1954 estimates we were inclined to favor the "alternative" estimate

upon consideration of the statistical quality

of the income and product estimates involved. With regard to the SEC measure

of personal saving, which is provided

through direct estimates of changes in the

assets and liabilities of persons, data deficiencies make this type of procedure a

hazardous one also.

Although none of the three available

measures of personal saving could be regarded as particularly reliable, we took

into account that they were to a very large

extent statistically independent and thus

could be used to provide useful statistical

checks upon each other. Considerable

weight was therefore attached to the fact

that, in the estimates initially reviewed, the

SEC direct measure and the OBE "alternative" measure were in line with each other,

not only for 1954, but also throughout the

period 1948—53. For each of the 6 years of

that period, as for the benchmark year

1954, the tentative estimates initially

turned in by staff members showed a positive statistical discrepancy and a personal

saving figure—income less consumption—

that appeared too low in relation to both

of the other personal saving series.

What, then, caused this figure to be "too

low"? Did the error center in disposable

income, in consumer expenditures, or in

some combination of the two? To these

questions there can be no sure answers.

Our own judgment, as already indicated,

led to a scaling down of the initial calculation of consumer expenditures. This

amounted to I1/* percent of the 1954 total,

or $35/2 billion. The reduction was allocated proportionately among the individual

commodity and service items since it did

not appear advisable—nor was there any

feasible basis—to attempt to gauge relative

accuracy among them. Adjustment of the

1954 benchmark estimates, together with

the interpolations between 1947 and 1954

which followed, meant that the final estimates for 1948-53 are also lower than they

otherwise would have been—by proportions which roughly represent a straightlining between zero percent for 1947 and

1J/2 percent for 1954.

The decision which we made regarding

the 1954 figures may be said to be twofold:

(1) Rejecting the initial estimate of consumer expenditures derived by the usual

procedure of building up the total from

detailed, separately calculated commodity

and service items; and (2) substituting in

its place the aggregate approximately indicated by subtracting the SEC direct estimate of personal saving from our own

figure on disposable personal income. When

viewed in this way, the published 1954 consumer expenditure total is seen to have a

specific basis; and the value of estimating

income, consumption, and saving in an

interrelated framework is once more

brought into clear focus. As a corollary,

however, it will be recognized that the

three measures of personal saving shown in

table V—8 have lost a considerable measure of their statistical independence for the

post-1947 period.

CONSIDERATIONS OF RELIABILITY

This point must be emphasized: The decision that the consumer expenditure figure

was too high—rather than that the personal income calculation was too low—

represented a judgment, although we believe a good one. It was noted in Chapter

7 that quantitative measures of the reliability of the various income and product

series are not available, and cannot be constructed on a meaningful basis. We therefore had to rely on an appraisal that, as

compared with personal consumption expenditures, personal income is a better

estimated series with statistical procedures

more clearly indicated.

In terms of the broad components of

personal income, a very high rating of reliability must be assigned to wages and

salaries, dividends, and transfer payments,

which together account for four-fifths of

the total. Among other components, only

rental income of persons—less than 4 percent of all personal income—can be stated

flatly to be deficient; and personal interest

income and other labor income are rated

as satisfactory.

The estimates of proprietors' income—

both farm and business and professional—

are subject to significant shortcomings. In

the case of the latter (nonfarm) series,

however, one should guard against the easy

generalization that it is patently and substantially too low by reason of the fact that

it is founded principally on tax return information. For it should be noted that the

tabulations of Federal tax returns are quite

comprehensive in scope and have been adjusted for gaps in coverage by reference to

census materials, and that the reported

compilations from taxpayers' original returns have been raised for understatement.

The allowance which has been made for

understatement—based largely on an Internal Revenue Service "audit control"

study of sole proprietorships, but supplemented liberally by us where the IRS data

were not applicable—is quite sizable. In

1954, it amounted to $5 billion, or 20 percent of the IRS total of sole proprietorship

and partnership net income to which it

was related.

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76 DATA SOURCES AND PROCEDURES

ditures, it is clear that a high degree of

reliability attaches to this large segment of

the gross national product. But there would

appear to be several reasons for drawing

a distinction—less favorable—between the

estimates of consumer expenditures and

those of personal income. The more important are as follows:

1. There is no counterpart in personal

consumption expenditures to the accuracy

that is imparted to personal income by the

estimates of wages and salaries, dividends,

and transfer payments.

2. The estimating procedures applied to

consumer commodities are fairly complex.

3. Certain basic statistical sources on

which the estimates of consumer services

rely are rather infrequent in timing, and

some were not available for 1954 or a proximate year. Most important was the decennial Census of Population and Housing,

upon which one-third of the consumerservice expenditure total for 1950 was

based.

4. In the categories of both commodities and services, the estimation of consumer expenditures is rendered imprecise

at several stages by an inadequacy of requisite statistical data. As will become evident

from the later description of methodology,

a particular handicap is the lack of comprehensive, accurate information for making "consumer allocations"—for segregating sales to consumers from sales to business and government.

There is one final point. By our procedure of having adjusted personal consumption expenditures and left (disposable)

personal income intact, we do not imply

that all of the evident error in personal

saving as initially estimated was concentrated in consumer expenditures. Rather,

we believe the procedure adopted reflects

the substance of the matter—that the bulk

of the error was in consumption but that

a more elaborate assessment and proration

of error would not have been warranted,

from the standpoint of either the extent

of our knowledge or the difference in results which would have obtained.

Commodity Composition

Attention is now directed to another

problem that emerged in the recent work

on personal consumption expenditures. We

refer to the fact that the 1954 revisions

among components of total consumer expenditures for commodities were generally

quite sizable. The situation, we felt, was

not one which could be handled in routine

statistical fashion, by simply adjusting the

provisional, or preliminary, estimates for

1948-54 to the new benchmarks and then

moving forward from 1954 by means of

the same data and procedures which had

proved inadequate. Accordingly, the methodology of interpolation and extrapolation

in the commodity segment of consumer

expenditures has been altered in order to

improve the estimates for past periods and

to prevent a recurrence of large biases in

the future.

BACKGROUND OF PROBLEM

Prior to an explanation of this change

in methodology, the background and dimensions of the problem which gave rise

to it may be explored briefly.

Our previously published postwar estimates of consumer expenditures for individual commodity groups were based, in

the main, on an extrapolation from 1947

by retail sales. In itself this method cannot

take account of year-by-year changes in

the relative importance of business purchases at retail and consumer purchases

outside retail trade—allowances for which

are difficult to make. But a more significant shortcoming of retail trade data in

this application is that, with the exception

of department store sales, they are not

available by commodities, but according

to a not very detailed classification by type

of store.

This classification assigns a store to a

single category on the basis of the commodity accounting for the principal part

of its business. But food stores, for instance,

sell goods other than food, and food is sold

also in other types of retail outlets, including drug and department stores. With

diverse movements in the sales of various

commodities, use of sales data classified by

type of store to move commodity groups

will give rise to errors which, however, may

be presumed to show an offsetting

tendency.

This was borne out by our experience in

the revisions made 4 years ago. The projections of consumer commodities from 1939

by retail sales missed the commodity-flow

benchmark total for 1947 by only 3 percent, and the record for the individual commodity groups was mixed. However, for

an extrapolation procedure covering an 8-

year period marked by extensive war and

postwar changes and a near tripling in

total dollar expenditures, the results were

considered "broadly satisfactory." There

was no clear pattern of bias and, with the

reservations expressed in the 1954 National

Income supplement, we continued to use

retail sales as an index of consumer expenditures. They provided the basis for interpolating between the 1939 and 1947

commodity-flow benchmarks and, as noted,

for moving the latter forward.

When the extrapolations for 1954 are

compared with the new commodity-flow

benchmarks for that year, two facts are

readily evident: (1) The differences

among commodity groups are generally

substantial; and (2) these, however, are

approximately canceling so that the overall

totals agree quite well, even apart from the

1/4 -percent reduction that was applied to

the benchmark figures.

For the commodity groups, the extent of

divergence between provisional and benchmark estimates found for 1954 was considerably greater than that for 1947 (as

shown on page 105 of the 1954 Supplement). We of course regard with particular concern the discrepancy which developed in the important food series. Our

published estimate for that component for

1954 has been lowered by 10 percent, or

$7.0 billion; and for 1957 the corresponding revisions amount to 115/2 percent, or

$9.8 billion.

Based principally on the results of the

1954 Census of Retail Trade, tests show

that these errors in the consumer commodity figures may be attributed only in

generally minor part to biases in the estimates of retail sales. Instead, they centered mainly in this particular application

of the retail sales data—in using them to

indicate changes in consumer expenditures

by commodity lines.

In the food category alone, very little

of the overall upward bias was due to errors

in the retail sales figures which we used.

Part of this bias came from the procedure

of utilizing retail sales information to extrapolate food sold outside retail channels,

which our 1954 benchmark study showed

had actually declined somewhat from

1947. But the bulk of the discrepancy in

the food series evidently resulted from a

shift in the composition of food store sales

toward nonfood types of merchandise. This

same shift contributed largely to the general understatement which characterized

the provisional estimates of consumer expenditures for nonfood commodities.

STEPS IN NEW PROCEDURE

Because of this record of revisions, the

procedure of simply using retail sales to

move from one census period to the next

has been modified as follows for the large

"commodity flow" segment of personal

consumption expenditures:

1. Overall totals for this segment were

established for the years 1948-53 by using

the published estimates (based on the retail

sales extrapolation from 1947) to interpolate between the 1947 and 1954 benchmarks. Similar totals for 1955-57 were

derived as the sum of component estimates

extrapolated from 1954 by the usual retail

sales procedure. In this initial key step of

setting up "control" totals, we were guided

by the fact that for both 1947 and 1954 the

provisional estimates based on the movement of retail sales turned out quite well

in the aggregate as compared with the

benchmarks.

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HOW THE ESTIMATES WERE MADE 77

2. For 1951, special estimates were developed by individual commodity groups

and then, through a downward adjustment

of 3 percent, made to conform with the

independently derived total. These estimates, to be described below, were based

for nonfood lines on an abbreviated commodity-flow approach utilizing product

data from the Census Bureau's Annual

Survey of Manufactures; for food expenditures, on a Department of Agriculture

series on the retail value of domestic farm

foods bought by civilian consumers (reconciled to our concept and adjusted through

interpolation to the food expenditure estimates for 1947 and 1954 prepared by the

basic commodity-flow method). The Agriculture series, which is available annually,

has corresponded well in movement to the

estimates of consumer expenditures for

food derived in our various commodityflow studies.

These "secondary" benchmark estimates

for 1951 provided valuable additional information bearing on the commodity distribution of consumer expenditures within

the period 1947-54. As it turned out, they

differed quite significantly from figures for

1951 based on an interpolation by retail

sales, and in general are assuredly superior

to them. In such an interpolation, lack of

information necessitates the assumption

that the bias or error observed for the

terminal benchmark year developed in an

approximately cumulative, straight-line

fashion during the period.

3. Another "secondary" benchmark distribution was established for 1956. It

proved feasible to base this one wholly on

the (abbreviated) commodity-flow procedure, for food expenditures as well as

for the various other commodity groups.

An upward adjustment of about l*/s> percent was required to bring the individual

commodity estimates into line with the

"control" total.

For a number of groups, the estimates

yielded by the 1956 abbreviated commodity-flow procedure differed little from

the 2-year extrapolations based on retail

sales. A notable variation appeared in food,

with the series based on the movements of

retail food store sales again exhibiting too

sharp a rise. It is to be noted, however,

that the further bias resulting from this

method should not be calculated as the

difference between the food revisions in

1956 and 1954. Of this difference, $2/ 2

billion, roughly one-half may be said to

have stemmed from this bias. About $%

billion may be ascribed to our treatment

of the sales data themselves in the provisional procedure, and about $/ 2 billion

to the previous error in level in 1954.2

2. That is, with our level off by $7.0 billion for

1954, even a correct extrapolation would have meant

a further error of $% billion for 1956, given the

8 percent rise in food expenditures which occurred

over the 2-year period.

4. At this stage, with distributions for

the commodity-flow segment available for

1947, 1951, 1954, and 1956, estimates for

other years of the post-1947 period were

derived by interpolation and extrapolation,

with adjustment to the previously established totals. For this purpose, use was

made of the Agriculture Department's

series for food expenditures and our own

retail sales-based series for the other groups.

By way of recapitulation, the current

method of estimating consumer commodities for the preponderant "commodity

flow" segment has these main ingredients:

(1) Development of periodic benchmarks

from the Census of Manufactures and

Census of Business; (2) the setting of

control-totals for other years through interpolation and extrapolation by an aggregate series constructed from components

based on the movement of retail sales data

classified by type of store; (3) the establishment for selected years of commodity

distributions derived from an abbreviated

commodity-flow method; and (4) the

preparation of distributions for other years

through an interpolation (and extrapolation) procedure based for food expenditures on Department of Agriculture data

and for other commodity lines on the OBE

"components" series noted above, based on

changes in retail sales.

As compared with the former procedure

of simply extending the commodity-flow

benchmarks by the component series based

on the movement of retail sales, this revised approach very probably represents a

distinct improvement insofar as the commodity composition of the total is concerned. It lessens the emphasis on the

retail sales-based series, and, through the

abbreviated commodity-flow distributions

which will be updated from year to year,

it should prove adequate to spot the main

biases developing in the current extrapolations.

At the same time, while the new procedure is likely an improvement over the

old, it still rests to a considerable, if lessened, extent on the retail-store sales

approach which has proved inadequate on

a commodity basis. Further, the "abbreviated" commodity-flow procedure needs

strengthening in a number of places; in

particular, it cannot be regarded as sufficiently reliable to register annual changes

accurately.

These considerations bearing on the estimates for noncensal years are apart from

the fact that the basic commodity-flow

procedure itself cannot yield precise measures, or realize its reliability potential,

given the source materials presently available for its implementation.

This need for better data on consumer

expenditures is emphasized in the listing

of major data gaps at the conclusion of

this chapter. Meanwhile, additional information on the elements of strength and

weakness in the present methodology for

consumer expenditures is provided in the

immediately following description. For

commodities, this supplements the foregoing general account by filling in some

details about procedures in the "commodity flow" area, as well as by covering the

series estimated by other methods. For services also there is provided a summary of

methodology underlying the present revisions.

Commodity Flow Method, 1954

The commodity-flow method used in

making the new benchmark estimates for

1954 was closely similar to that which had

been followed for 1947. Basic values were

those of the 1954 manufacturing census,

classified and allocated product by product.

These products, together with an allowance

for nonmanufactured foods based on Department of Agriculture data, were combined into consumption groups and then

raised from producers' values to consumer

expenditure levels by adding transportation

costs, trade markups, and taxes with lesser

adjustments for exports, imports, and

inventory changes. In the estimation of the

important markup element, the principal

sources were the 1954 wholesale census and

tabulations of Federal income tax returns

for that year by the Internal Revenue

Service; retail markups, in particular, were

based on a special sample of tax returns,

as were the 1947 markups.

MANUFACTURING DATA

At the manufacturing level, the first task

was to classify the full census array of commodities into the categories of "finished,"

"unfinished," and "mixed," according to

the definitions given in the 1954 National

Income supplement. This classification was

greatly facilitated by the extent of commodity detail—approximately 6,000 separate products—reported in the 1954 census.

Such detail serves to break up otherwise

mixed product items into products which

can be assigned individually, thus reducing

the problem of allocation.

The greater number of the commodities

reported could be classified directly as

either finished or unfinished. An overwhelming proportion of commodities in

this initial finished classification could be

assigned immediately to either the consumer commodity or producers' durable

category. However, some finished commodities fell into both of these categories,

and so required allocation. This problem

was not important.

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78 DATA SOURCES AND PROCEDURES

quired special study to allocate them among

the categories of consumer commodities,

producers' durables, and unfinished. Such

study, a key element in the commodity-flow

procedure, received little direct assistance

from the Census reports. The principal

lack was information on the distribution of

manufacturers5 sales by class of customer,

which the 1954 census, like its 1947 predecessor, did not collect (except in the case

of book publishing). Sales distribution data

had been a feature of the prewar manufacturing censuses.

With such data unavailable, 1947 allocation ratios were generally assumed to

apply to 1954, although in a limited number of cases modifications were introduced

on the basis of a clear change in conditions

or the advice of industry experts. Unfortunately, however, the 1947 allocation ratios

themselves had drawn rather heavily on

those for 1939, the latest year for which

sales distribution data were collected.

The judgmental factor, in short, played

much too large a role in the 1954 product

allocations. And it was somewhat larger

than in the 1947 estimates, to which the

Bureau of Labor Statistics, in its work on

interindustry flows, had provided considerable special assistance in this particular

phase of the commodity-flow procedure.

TRACING THE FLOW

In the earlier commodity-flow estimates

through 1939, manufacturers' sales to their

various classes of customers, together with

similar distributions of wholesalers' sales,

had been the basis for tracing the flow of

commodities through wholesale and retail

channels, as well as for estimating direct

factory sales to consumers.

For wholesaling, it was again necessary

in the 1954 estimates to give up the commodity-flow approach, since the requisite

distribution data for estimating wholesalers' purchases—the core of this approach—were not available. The substitute

procedure, which is complex and probably

less reliable, was like that devised for 1947.

For retailing, however, omission of sales

distributions from the 1954 (and 1947)

Census of Manufactures did not prevent

continuation of the commodity-flow treatment. Retailers' purchases of consumption

commodities could be estimated somewhat

indirectly and without significant error,

by procedures explained in the 1954

Supplement.

The critical requirement was for information on retail markups, which alone account for one-third of the final consumer

value of commodities estimated by the

commodity-flow method. It may be said

that the information on this element which

has been available for the past two commodity-flow studies has been inadequate

for the needs of national income calculations. It has been an area of retrogression

in the Federal statistical program from our

point of view.

The estimation of retail markups for

1954 departed little from 1947 procedure.

The principal source was a sample of Federal income tax returns for 25 kinds of

business, provided by the Bureau of the

Census and the Internal Revenue Service.

This was drawn from Census lists as a

probability sample stratified by sales size,

with about 300 cases in each kind of

business or 7,000 in all. However, many

tax returns in the sample could not be

located and the number of cases which

finally could be used approximated 4,000.

One other observation may be made concerning the data sources which were available for raising the consumption commodity groups from producers' to final consumer values. This has to do with the fact

that the 1954 business census fell short of

its 1948 counterpart in several respects

significant to the consumer commodity estimates. It did not obtain data on commodity breakdowns of retailers' sales; and

it did not tabulate and report the service

receipts of retailers, the merchandise sales

of service trades, and most of the data

collected on inventories in trade.

^Secondary" Benchmarks

The abbreviated commodity-flow procedures that yielded the "secondary"

benchmarks for 1951 and 1956 were based

principally on the Census Bureau's Annual

Survey of Manufactures. The product

(shipments) data collected in this survey

are much less detailed than those in a full

census, and are subject to marked sampling

variability for some of the consumption

expenditure groups. However, the Annual

Survey has shown decided improvement in

these and other respects since its initiation

in 1950.

In these summary applications of the

commodity-flow method, the classification

and allocation of reported product data

conformed with decisions made in the

benchmark studies. The allocations for

1951, for example, were based on rates

for both 1947 and 1954, interpolated if

necessary at four-sevenths of the difference

between them. The 1956 allocations were

held at the 1954 rates. For both "secondary" benchmarks, the allocation rates were

applied to 5-digit classes of manufactured

products, which were the finest detail

available in the 1951 and 1956 Surveys.

The 1951 commodity-flow study, as already noted, did not cover food. For most

individual groups, all steps in the 1947

benchmark procedure—as outlined in the

exhibit on page 111 of the 1954 Supplement—were carried out. Actual estimates

were made for manufacturers' excise taxes,

imports and exports, wholesalers' inventory

change, retailers' inventory change, re

tailers' markups, and retail excise and sale

taxes; other steps in the procedure wer<

based on 1947 relationships, as exemplifiec

by the extrapolation of transportatior

charges from 1947 by manufacturers' shipments plus excise taxes. For the importani

retail markup element, the 1947 commodity group rates were extrapolated to 1951

mainly by department store data from the

National Retail Dealers' Association, as

well as by Internal Revenue Service data,

and applied to estimated retailers' cost of

sales. The overall markup ratio turned out

to be intermediate between the comparable

figures for 1947 and 1954.

Six commodity groups—women's clothing, men's clothing, jewelry and watches,

drugs, trailers, and magazines and newspapers—were accorded separate treatment

in the 1951 study. Consumer expenditures

for these groups, selected because of their

particular characteristics in relation to the

data situation, were interpolated between

1947 and 1954 by the estimates of manufacturers' shipments.

The 1956 study was based upon somewhat better shipments data. Also noteworthy, it covered the food group—manufactured food through the Annual Survey,

and nonmanufactured food through Agriculture Department data in a procedure

that shortcut the extensively detailed

benchmark effort by carrying out the allocations of farmers' cash receipts for relatively broad product classes.

The actual method adopted for the

various commodity groups for 1956 was

quite abbreviated, mainly because data of

the type used for 1951 were not fully

available to estimate retailers' markups.

Specifically, manufacturers' shipments were

classified and allocated, and imports were

added and exports subtracted; and the

shipments series so adjusted was used to

extrapolate the 1954 final expenditure

estimates for the individual commodity

groups. Finally, inventory changes were introduced. These were derived from Census

Bureau monthly inventory series and IRS

Business Indicators data—which sources

were not sufficiently detailed for our purpose and permitted only rough estimation

of inventory adjustments by commodity

groups.

The present situation calls for the institution of commodity-flow estimates on an

annual basis. The clear requirement is for

continued improvement in the annual

manufacturing surveys and increased availability of auxiliary data, notably on retailers' markups.

Interpolating Series for Food

The earlier general account of problems

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HOW THE ESTIMATES WERE MADE 79

trapolation of food expenditures by retail

store sales had led to substantial error, and

that we had introduced a revised series

utilizing figures of the Department of Agriculture for interpolation of periodic "commodity flow" estimates. A brief description

of this interpolating series is in order.

The series is derived by making a number of adjustments to the published figures

of the Agricultural Marketing Service on

the retail cost of farm foods purchased by

domestic civilian consumers. In the preparation of these figures, the basic value

data are the AMS estimates of cash receipts from farm marketings, which are

allocated or adjusted to represent only food

for civilian consumption. These farm

values then are raised to a retail basis by

the application of ratios of retail prices

to farm prices for equivalent units; the

minimum procedure is to mark up a group

of related foods by the average ratio for

a selection of items in the group, but if

data permit ratios are applied for individual subgroups or product classes. The overall method allows for waste and loss, byproducts, nonfood use, food for export and

military use, interfarm sales, and changes

in stocks (except retail stocks). Elements

of retail price covering changes in manufacturing and marketing services may not

always be reflected fully. But where reasonably good estimates of prices and volumes

are possible, account is taken of such

changes as the increased proportion of

potatoes sold as potato chips, or the additional cost involved in shifts to smaller

sizes of canned fruits and vegetables.

To this published AMS series on the retail cost of farm foods bought by civilian

consumers, adjustments must be made in

order to approximate the definition of food

expenditures (excluding alcoholic beverages) in the national accounts. Among

these, the additions needed to cover nonfarm foods (fishery products) and imported food are estimated by the AMS.

Principal adjustments which we make are

the deduction of food such as hospital

meals treated otherwise in the national accounts, the addition of military food,

the incorporation of retailers' inventory

changes, and the bringing of trade margins

implicit in the AMS series into conformity

with our definition. These various adjustments are not large in relation to the overall food total and, although statistically

crude in some respects, are not capable of

engendering appreciable errors.

Other Methods, 1954

From commodity-flow benchmarks and

interpolation procedure, we turn briefly

to the groups estimated by other methods,

which contribute about one-fifth of all

commodity expenditures by consumers. In

total, these groups were revised upward for

1954 by $2/ 2 billion, or 9 percent. This

change was due entirely to the increased

allocations to consumers of expenditures

for passenger cars and related products,

which are discussed later. Apart from this

factor, revisions would on balance have

reduced the total of these groups moderately.

In this category, automotive expenditures are predominant and "retail valuation"—estimated quantity purchased multiplied by an appropriate average retail

price—is the principal method. The pricing of new passenger cars continues to require careful study, although a major advance serving to facilitate this was brought

about by the Bureau of Labor Statistics

through reflection of allowances and discounts in new car prices beginning in

1954. In our method, imported cars have

been accorded separate treatment because

of their increased importance. Used car

margins, moreover, have been put on a

somewhat firmer basis, with the Automobile Manufacturers Association, National

Automobile Dealers Association, and Bureau of the Census each contributing data

for the past few years which were not previously available.

Expenditures for gasoline and oil, like

the estimates of passenger car purchases,

were affected substantially by the new consumer-allocation ratio. Otherwise, the only

noteworthy change in method occurred in

the average price series which is applied to

the estimated quantity of gasoline to obtain expenditures prior to consumer allocation. The retail pricing now draws mainly

on BLS data, which, along with price information from the Agricultural Marketing

Service, have been introduced to supplement the Texas Company price series long

used in this estimate.

The series on purchased fuel and ice

(combined with fuel produced and consumed on farms in the expenditure table)

is unique in its reliance upon retail valuations for periodic revisions and upon retail

sales data for extrapolations. It did not

escape the biases generally imparted by the

latter. The various source materials available for the 1954 benchmark estimate were

generally the same as those which had

been used for 1947.

New data were incorporated in the

tobacco series, which is also estimated by

the retail valuation method, but these made

no appreciable difference in the final

values.

Comment may also be made on several

of the imputations. Two imputed items of

consumer commodities, food and fuel produced and consumed on farms, are supplied by the Agricultural Marketing Service. These were changed moderately in the

recent AMS review of its postwar farm

income series. For another imputed series—

standard clothing issued to military personnel—only slight revisions were found necessary.

Services

The postwar revisions of total consumer

expenditures for services included in this

report are quite small. For 1954, the new

aggregate of $86.3 billion is approximately

one-half percent lower than the one it replaced. Prior to the overall adjustment of

1954 consumer expenditures discussed

above, the services total was 1 percent

higher than the previously published estimate. It may be added that this latter

difference, in turn, was about equivalent to

the amount by which consumer services

were affected by the increase in the ratio

for allocating the automobile service items

between consumers and business.

The good showing of the estimates of

consumer service expenditures in the aggregate reflected a substantial offsetting in

the revisions made for individual components. While these revisions in general attest

to the need for better data, it should be

observed that the largest percentage revisions occurred for the most part in items

of relatively small magnitude, and that a

few of the most sizable changes—around

one-fifth—resulted mainly from the special

new auto-allocation study. This study—as

described below—was the first of its kind in

many years, and we expect to keep a closer

watch on this phase of the estimates than

has been possible in the past, and thereby

minimize the errors from this source.

Apart from the auto-allocation study,

the principal new source materials utilized

in the revision of consumer services were

the Census of Business for 1954 and Internal Revenue Service tabulations of the

receipts of professional practitioners for

the years 1953-56. Numerous, more specific, sources of information, extending

over the entire range of the services, were

also taken into account. It may be added

that consumer expenditures for services

represent one of the most detailed areas

of estimation in the field of national income, with the 55 service items for which

expenditures are shown in table 11-4 actually comprised of several hundred sepa~

rate series of estimates.

CENSUS OF BUSINESS DATA

Benchmark data for items accounting for

about one-sixth of total consumer expenditures for services are obtained from the

Census of Business. Data utilized in preparing these estimates consist of the service

receipts of retailers as well as of service

establishments.

Receipts data reported in the 1954 Census of Business supplied the basis for new

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80 DATA SOURCES AND PROCEDURES

estimates comparable to the previous

benchmarks for 1948.3 Only moderate

changes were called for in most Censusbased items as the result of the new data;

exceptions were the laundering and radio

and television series, which were reduced

by 9 percent and 21 percent, respectively.

The usefulness of the 1954 Census of

Business data for the present estimates was

restricted by the lack of certain breakdowns formerly provided. In particular,

separate tabulations of receipts from services and receipts from commodity sales,

which had been included in earlier censuses, were not available for 1954. In most

cases, service receipts were estimated on

the basis of their relationship to total receipts in 1948. However, for two areas

where this breakdown is of particular importance—automobile repair and radio

and television repair—the Census Bureau

supplied special samples.

Although the upward revision of 18 percent in the automobile repair item in 1954

stemmed almost entirely from the new

auto-allocation ratio, the method of deriving total auto repair expenditures prior to

allocation was also changed. Census data

were used for estimating the receipts of

service establishments from this source,

but the corresponding service receipts of

new car dealers were derived from sample

data prepared by the National Automobile

Dealers Association. The reported data in

the form of repair labor costs (on new and

used cars) as a percent of new cars sold

were doubled to allow roughly for parts

used in making repairs, and then multiplied by the number of new car sales. This

allowance for parts was based on the BLS

1947 Interindustry Relations Study and on

a cost breakdown contained in the yearbook issue of "Mail-Me-Monday Barometer

of Small Business," published by the Accounting Corporation of America.

PROFESSIONAL SERVICES

The Office of Business Economics periodically has conducted sample questionnaire surveys to obtain basic data for estimating the professional services category

of proprietors' income and of consumer

expenditures for services. With regard to

the latter, survey information on the average gross incomes of professional persons

from independent practice, and on the

percentage of gross income received from

individuals (as contrasted with government and business), has been used in conjunction with available information on the

total number of persons in each profession

to secure the consumer expenditure

estimates.

3. These latter estimates, together with the series

used to interpolate and extrapolate the benchmark

estimates, are described in some detail in the 1954

National Income supplement.

For the three largest professions, the

most recent data collected in the OBE surveys pertained to the year 1948 for dentists,

to 1949 for physicians, and to 1954 for lawyers. The information on lawyers' incomes,

covering the years 1947-54, was not available in time for the previous revision of

the national income and product statistics,

but has been fully incorporated in the

present report. The results of the legal survey, which was carried out with the cooperation of the American Bar Association,

were published in the December 1956 issue

of the SURVEY OF CURRENT BUSINESS.

In the professional services area, the material available from OBE surveys has been

supplemented by tabulations from the Internal Revenue Service. These cover the

gross receipts of professional practitioners

as compiled from Federal income tax returns of individuals for the years 1953-56

and of partnerships for 1953 and 1956.

Both sets of figures for 1956 were provided

in Business Indicators, to which previous

references have been made.

This body of IRS information has been

used to indicate the movements of consumer expenditures for the various types

of professional services in the more recent

period. Such use of the gross receipts data

may be expected to be generally valid, by

reason of the fact that a very large proportion of the business done by independent

professional persons is with consumers. The

outstanding exception is provided by lawyers, only about one-half of whose gross

income from independent practice is received from individuals.

Our revisions of consumer expenditures

for the services of physicians and lawyers

were fairly moderate, but they were very

substantial in the case of dental services.

The 1948 results from our last survey of

dental incomes had been carried forward

on the basis of indirect data and methods.

OTHER CHANGES

As indicated, besides incorporating Census and IRS data and taking into account

the new auto allocation, we reexamined

all the individual service series and made

revisions on the basis of any new information available or any change in procedure

deemed advisable. Almost all the items

were modified, at least to some degree;

the more important revisions may be noted

briefly.

Several revisions on the income side of

the accounts—discussed later—affected

service items. A reworking of wages and

salaries in the "private households" industry, for example, was carried over directly

into the "domestic service" component of

consumer services, which is the same as

employee compensation in that industry.

Also in wages and salaries, a revision of

the religious-organizations component of

the "nonprofit membership organizations'

industry affected the "religious and welfare

activities" component of consumer services

because such payrolls are used to extrapolate the portion of expenditures in this

category benchmarked on the 1936 Census

of Religious Bodies.

Service expenditures in the important

"Housing" category also underwent revision, as discussed presently in connection

with rental income of persons. As a result

of the incorporation of new source materials, both the space rental value of owneroccupied nonfarm dwellings and the space

rent of tenant-occupied nonfarm dwellings

were changed moderately—each by about

4 / 2 percent, for example, in 1954.

Procedural changes brought about a

quite sizable revision in the consumer service series for private elementary and secondary schools. This series formerly had

been derived as the product of (a) reported

enrollment in these schools, and (b) the

estimated average expenditure per pupil

in public elementary and secondary

schools. For this report, we modified item

(b) so as to reflect the estimated postwar

movement in average expenditures for

pupils of private elementary and secondary

schools, utilizing for this purpose mainly

the National Income Division's estimates

of the payrolls of these schools.

The estimates of interest on personal

debt have been raised considerably—11

percent in 1954. This change centered

mainly in revisions of the Federal Reserve

Board's consumer credit statistics.

As a final note, consumer allocations

were reviewed (in addition to those for

autos) and changes were made notably for

these series: Telephones, airlines, hotels

and other lodging places, street and electric

railways, electricity, and motion pictures.

The information on which these revisions

were based was generally fragmentary

since, on the whole, data for making consumer allocations of service expenditures

are unsatisfactory. This situation has an

important effect on certain individual

series such as hotels; but, with respect to

the total, components adding to only about

one-tenth of all consumer service expenditures constitute a substantial allocation

problem—a point discussed in the 1954

Supplement.

Passenger Car Allocation

Since passenger car sales are not reported separately by type of purchaser—individuals, business, and government—this

breakdown must be developed for purposes

of gross national product estimation. After

allowance for government purchases, it is

necessary to allocate expenditures for new

cars and for used cars (dealers' gross

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HOW THE ESTIMATES WERE MADE 81

margins) between personal consumption

expenditures and producers' durable equipment. The problem of making this allocation is complicated by the fact that passenger cars are frequently used partly for

business and partly for personal purposes.

In general, the attempt is made in the

present estimating procedure to allocate to

business use all passenger car outlays which

are charged to business expense.

Formerly, new passenger car sales and

gross margins on used cars were allocated

70 percent to personal consumption expenditures and 30 percent to producers'

durable equipment (except for World War

II, when the new car allocation to business

was raised). These proportions were derived mainly from surveys made by the

Bureau of Public Roads to determine road

use in terms of mileage.

More recent studies by the Bureau of

Public Roads indicate that the relationship

between personal and business usage has

changed considerably, and the present estimates have been revised in line with this

finding.

The new reference base has been the

Bureau's surveys of motor vehicle use

taken variously during the period 1950-54,

based upon representative samples drawn

from 17 States. Analysis of the data, both

published and unpublished, collected in

these surveys indicates that—on the basis

of mileage driven—83 percent of the sales

of new passenger cars and gross margins

on used cars is allocable to personal consumption expenditures, and 17 percent to

producers' durables.

Tests indicated that the 17-State data

are probably representative, that is, that

the results which they showed were about

the same as would have obtained from a

full-scale surveying of all the States. First,

the 17 States yielded the same 70-30 allocation pattern for 1934-37 as had the

entire survey for that period; and, secondly,

they showed a prewar-to-postwar percentage increase in passenger car registrations

closely similar to that for the United States

total.

The old allocation has been retained

through 1947 on the ground that the consumer proportion probably did not rise in

the early postwar years when automobiles

were still in short supply and business firms

continued—as they did during the war

period—to obtain a larger than normal

share of supplies available. The new allocation has been introduced into the estimates starting with 1953 and linked to the

former 70-30 pattern by straight-line interpolation back to 1947.

Corroboration of the new 83-17 ratio—

or at least of a substantial shift from the

former 70-30 allocation—was found in

several independent sources. (1) Unpublished data tabulated from the 1950 BLS

Consumer Expenditure Survey, while only

partly relevant to the present estimate,

clearly indicated that the existing 70 percent allocation to personal use was too low

for the more recent period. (2) Calculations based upon the Federal Reserve

Board study, Financing New Car Purchases, showed that in 1954 and 1955 business users made about 20 percent of all new

car purchases. However, in view of the

faster turnover of cars used by business,

the proportion of the total stock of cars in

business use must be less than 20 percent.

(3) Studies for recent years made by the

Dominion Bureau of Statistics for the Canadian national income estimates show

about the same breakdown between business and personal use of automobiles as

the new United States benchmark. It is

significant that the Canadian prewar allocation also was 70—30.

While these independent studies serve to

confirm the general reasonableness of the

revised allocation, this estimate is rough

and continues to involve a considerable

measure of judgment. Currently under

way is a comprehensive study which promises to yield more definitive results, and

which could be repeated at regular intervals. This study entails the collection of

direct data on the net outlays (purchases

minus sales) of new and used passenger cars

by both consumers and business. The results

will be based upon a coordination of information from three sources: (a) A special

questionnaire to the respondents of the

OBE-SEC Plant and Equipment Survey,

data from which are already at hand; (b)

the Federal Reserve Board Survey of Consumer Finances for 1958; and (c) a survey,

yet to be undertaken, of the auto purchases

of the major car rental companies.

The shift from a 70-30 to 83-17 automobile allocation, it may be noted finally, has

had a quite noticeable effect on the estimates. For the year 1954, for example, this

particular revision raised consumer expenditures for passenger cars (new and used) by

$1.6 billion; lowered producers' purchases

of durable equipment by the same amount;

and raised consumer expenditures for tires,

tubes, accessories, and parts by $0.3 billion,

for gasoline and oil by $1.2 billion, and for

automobile repairs, insurance, and tolls by

$% billion.

As will be evident, the revisions stemming from the passenger car series were

offsetting between consumer expenditures

and producers' durables, and hence did not

affect the gross national product total. The

Fig. 34

Distribution of Gross National Product, 1957

Total $440 Billion

Net

Exports

1.1%

Consumer I

Expenditures {

64.6% I

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82 DATA SOURCES AND PROCEDURES

other revisions, however, increased the

GNP (by a little over $2 billion in 1954)

through their effect on consumer expenditures. The business-use portion of expenditures for gasoline and oil, tires, accessories,

repair work, etc., is an intermediate product not included in the gross national product, and therefore cannot counterbalance

an error in the consumer-use portion.

FIXED NONRESIDENTIAL

INVESTMENT

Producers' durable equipment, as already explained, was the second major

component of GNP to undergo a thorough

statistical reworking. In turning to this, we

shall cover the broader area of "fixed nonresidential investment," which includes not

only the producers' durable item but also

private construction except housing. This

treatment is followed, even though the construction series has not been revised, in

order to put the work done on producers'

durables into perspective.

Consideration is given also to the OBESEC series on new plant and equipment expenditures. This series, as well as that on

construction, was taken into account in

setting the final estimates of producers'

purchases of durable equipment. As will be

seen, the essential approach was twofold:

(a) Preparing annual estimates of producers' durable equipment for the period

1947-56, and (b) modifying this series in

the light of a check made on the movement

of producers' durables plus private nonresidential construction against plant and

equipment expenditures adjusted approximately to the GNP concept.

In this area of fixed nonresidential investment, then, we have dealt with three

series of estimates. The following brief account of the scope and main statistical

characteristics of these series will be helpful

in understanding the uses which we have

made of them.

PRODUCERS' DURABLE EQUIPMENT

This component of the gross national

product is defined to cover newly produced

durable equipment (with an average life

exceeding 1 year) acquired by private business enterprises and nonprofit institutions.

It is estimated by type of commodity, as

shown in table V-4.

The "commodity flow" method is the

basic procedure followed in estimating producers' durable equipment. The application of this method, similar in its essentials

to that already described for consumer

commodities, entails segregating finished

producers' durables from total manufacturing output and then tracing their flow

through distributive channels so as to arrive

at the final costs to purchasers. Currently,

business passenger cars—around 10 percent

of the total—are the only sizable component for which this method is not followed.

New benchmark estimates of producers'

durable equipment were derived for 1954

by procedures which in all major respects

followed those used for 1947, as set forth in

some detail in the 1954 National Income

supplement. The major task again involved

the classification and allocation of the detailed product information collected in the

Census of Manufactures. Attention may be

called, however, to the substantial effort

devoted to obtaining better data on government purchases of durable equipment—

which are subtracted from manufacturers'

shipments to obtain the final estimates of

durable equipment, by commodity groups,

valued at producers' prices.

This effort was only partly successful, for

the data on government equipment purchases which we were able to secure already

embodied some estimation, were in general

not sufficiently detailed for our purposes,

and had to be adjusted by us in various

ways, notably to eliminate the estimated

amounts included for parts and other intermediate products. For Federal Government

purchases, data extending back over most

of the postwar period were obtained from

the Department of Defense and Atomic

Energy Commission; and the usual tabulations of contract awards under the WalshHealey Act were supplied by the Department of Labor. The estimates of equipment

purchased by State and local governments

were pieced together from data, mostly unpublished, provided by the Governments

Division, Bureau of the Census.

Along with the preparation of the new

benchmark figures for 1954, we revised the

annual series on producers' durable equipment back to 1948. A reworking of the annual series was indicated, and made possible, by the new information for 1954 on

manufacturers' shipments and distributors'

markups. In addition, as just indicated,

the data on Government purchases acquired from the Defense Department and

the Atomic Energy Commission covered

not only 1954, but a number of earlier

years as well.

CONSIDERATIONS OF RELIABILITY. It is

not easy to rate the producer durables series

as to reliability, although it may be said

in general that any overall appraisal must

be favorable. The principal elements which

must be taken into account in judging the

accuracy of the series tend to change

markedly in relative importance from one

period to the next, and the difficulty is

also enhanced by the fact that it has not

been possible to utilize uniform source materials. Following, however, are the points

of main relevance to a statistical appraisal.

(a) The application of the commodityflow method to producers' durables, as

compared with that to consumer commodities, has two particular features which

contribute to reliability. First, the problem

of "allocation" is mitigated by the fact

that manufacturers' sales of finished durable equipment (apart from the special

problem of government purchases) can be

derived, in general, from the vast amount

of detailed product data in the Census of

Manufactures through selection of items

in their entirety or allocation of "mixed"

items having relatively little other use.

Secondly, and more important, the successive estimating adjustments to manufacturers' sales required by the commodityflow method do not bulk large in the case

of producers' durable equipment, and are

virtually offsetting. That is, the estimation

required to convert producers' value to

final market values is less than in the consumer commodity series—chiefly because

only a comparatively small volume of producer durables flows through retail

channels.

(b) On the other hand, it is very difficult in some cases to segregate parts, or

components, from finished equipment; this

is especially true of the segment of producer durables comprised of products customarily charged by business to current

expense, instead of amortized through depreciation allowances. And difficulties are

also encountered for some commodities in

making the correct classification in relation to construction, the definition of which

calls for the inclusion of the installed value

of equipment generally considered an integral part of a structure and commonly

included in the construction contract price.

For the handling of these problems, actual survey information is required. The

classification and allocation of finished durable equipment rest to an undue degree on

persona] judgment, notwithstanding the

assistance afforded by the extensive product detail in the Census of Manufactures.

(c) The parenthetical reference above,

"apart from the special problem of government purchases," signifies another phase

of the commodity-flow method which

sometimes has impaired accuracy. As already indicated, government purchases

are deducted from manufacturers' sales as

a separate step in the procedure, and the

underlying data on this item have generally been quite imprecise. The amounts of

such purchases deducted have varied

widely, from a few hundred million dollars

in 1947 to a peak of $6.8 billion in 1952.

For 1954 and 1956, the estimated amounts

were $4.0 billion and $3.0 billion, respectively.

(d) As might be expected, commodityflow estimates of producer durables other

than for years based on the Census of

Manufactures are of lesser reliability,

though generally adequate. For the postwar

period estimates for nonbenchmark years—

those other than 1947 and 1954—are

based principally on the Census Bureau's

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HOW THE ESTIMATES WERE MADE 83

Annual Survey of Manufactures, which

was initiated in 1950. These estimates are

subject to sampling variability at the manufactures' sales level—although for most

producer durable groups this is small—and

to errors stemming from the use of benchmark relationships to determine allocations

of the less-detailed product information

available in the Annual Survey, as well as

the major elements of distributive costs.

(e) The series on business passenger

cars, the main group not derived from the

commodity-flow procedures, depends substantially on an allocation between consumers and business which is not very firm.

However, the basis of this allocation has

been improved by the new study which was

undertaken for this report—as described

earlier in connection with the estimates

of personal consumption expenditures.

CONSTRUCTION

The construction component of fixed

business investment—new private construction except nonfarm residential—is estimated in the Business and Defense Services

Administration, Department of Commerce,

from data of widely varying quality. This

series, which is classified by type of construction, is subject to a marked degree of

error because of the uncertainties as to

coverage, valuation, and timing for some

components.

About 40 percent of the total—all except public utility construction, farm construction, and oil and gas well drilling—

is based on monthly reports on contract

awards issued by the F. W. Dodge Corporation. These provide reasonably good

value information for projects covered,

particularly in periods when escalator

clauses and other similar arrangements are

not important. However, use of contract

award reports for this purpose poses difficult problems of estimation because (a)

coverage is not complete, (b) there is a

varying time lag between the reported data

of a contract award and the start of actual

construction, and (c) there is further variation in the rate of progress after the start.

With regard to (a), the F. W. Dodge

Corporation data until recently applied

only to the 37 States east of the Rocky

Mountains, and it was necessary to fill in

estimates for the Western States by reference to building permit information and

reports on construction contract awards appearing in various trade journals. But even

apart from this geographic adjustment, the

scope of the contract awards data does not

purport to be complete; allowance for

undercoverage is based on a raising ratio

developed from the 1939 Census of Construction and from trade sources.

In the absence of definite information on

(b) above, the assumption is made that the

delay between the letting of contract

awards and start of construction averages

one month. Then, with reference to (c),

typical activity patterns which have been

established for various types and sizes of

projects are used to translate the value of

starts into construction activity—to allocate

contract values to the particular time periods during which the work is presumed to

have been done. This procedure cannot be

very precise.

Public utility construction, which accounts for about 30 percent of the private

nonresidential total, is estimated chiefly

from direct reports of work done or paid

for. These come from Federal regulatory

agencies, private corporations, and trade

associations. Statistical problems in this

segment are relatively minor, and the

quality of the estimates is accordingly high.

Reliability is substantially lower for the

remainder of the private nonresidential

series, consisting in roughly equal magnitudes of farm construction and oil and gas

well drilling. The farm series, prepared in

the Agricultural Marketing Service, is developed chiefly from periodic sample surveys of the construction expenditures of

farm operators, with annual interpolations

based on indicators such as estimated consumption of lumber and sales of building

materials in rural areas, and on a variety of

other data. The series on costs of drilling

oil and gas wells has 2 benchmark years,

1939 and 1954, for which data collected in

the Census of Mineral Industries and compiled from trade publications were utilized.

The annual estimates that are tied to these

benchmarks are developed from figures on

the number of wells completed, as reported

in trade sources, and average cost per well

as estimated by adjusting the Census-based

averages to take account of changes in labor

costs and efficiency, material costs, proportion of wildcat ventures, and average depth

of wells.

PLANT AND EQUIPMENT OUTLAYS

These key data on business investment

are collected in regular surveys, quarterly

and annual, which cover the whole of the

private economy except for agriculture,

professional practitioners, nonprofit institutions, and finance, insurance, and real

estate. The plant and equipment series is

constructed mainly from reports to the

Securities and Exchange Commission by

corporations registered with the Commission and from a large sample of unregistered companies, unincorporated and incorporated, maintained in the Office of

Business Economics. Unlike the producer

durable and construction series, the estimates of business expenditures for new

plant and equipment are available in a

breakdown by industry.

The fact that the plant and equipment

survey does not cover the entire private

economy—and that separate data for the

noncovered segments are lacking—prevents

its direct incorporation into the gross national product. In addition, the data for

certain industry groups, notably "Commercial and other," would benefit from an

enlargement of the sample. It should also

be noted that the survey has not provided

regular, comprehensive information on a

breakdown of total expenditures into the

separate categories of plant and equipment.

PROCEDURE OF ESTIMATION

In addition to the obvious primary objective of deriving the best possible figures,

the procedure adopted for estimating fixed

nonresidential investment took into account a further consideration. This was the

desirability of utilizing the three series discussed above—showing fixed capital formation by type, on the one hand, and by

industry, on the other—in such a way as

to facilitate their joint use by analysts in

a more or less consistent fashion.4

The approach we have followed, as already briefly indicated, was as follows:

A series for the years 1947-56 was prepared as the sum of private nonfarm residential construction—the regular estimates

issued by the Business and Defense Services

Administration of the Department of Commerce—and of producers' durable equipment. We also prepared a series representing an adjustment of the plant and

equipment survey results. The major such

adjustments—for the purpose of making

the plant and equipment figures conform

more closely in definition to the sum of

the construction and producers' durable

series—consisted of the following additions: (a) Tractors and farm equipment,

based on data provided by the Department

of Agriculture; (b) capital outlays charged

to current expense, as derived in connection with the producers' durable equipment series; and (c) the estimated amount

of producers' purchases of automobiles not

accounted for in the survey. Certain of

these necessary adjustments are rough; and

others which are called for in principle,

such as including the investment of nonprofit institutions, cannot be made for lack

of data. All in all, the adjustments which

have been made secure a series which

is not precise as to level, but rather one

which is regarded as furnishing a fairly

reliable indication of the year-to-year

4. It may be noted that this approach is in line

with the broader plan for development of the basic

data on fixed capital expenditures noted in Chapter

6. The plan regards as necessary for effective

analysis in this area consistent estimates of fixed

investment broken down in three ways : by type of

producers' durable equipment and of construction,

by industry of purchaser, and by legal form of organization of the purchaser.

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84 DATA SOURCES AND PROCEDURES

movements in fixed nonresidential investment.

In fact, the series is probably more reliable in this respect than is the one derived

as the sum of producers' durable equipment

and private nonresidential construction.

Despite its incompleteness in scope and the

aforementioned need to strengthen sample

coverage in certain areas, the plant and

equipment series covers a preponderant

part of the relevant universe and rests on

reported business data. Estimation is a relatively minor factor, whereas it is a rather

substantial factor in the series obtained by

summing producers' durables and construction activity.

For the period from 1947 to 1954, there

was tolerably good correspondence in

movement between the two series. However, considerable improvement was effected by adjusting the sum of durable

equipment and construction by $1 billion

in each of 3 years. The adjustment was

downward in 1950 and 1954 and upward

in 1952.

In the period 1954-56, however, the two

series differed substantially in movement.

As compared with the adjusted plant and

equipment figures, the equipment-construction series registered a considerably steeper

rise from 1954 to 1955 but increased markedly less from 1955 to 1956. Over the 2-

year period as a whole, the expansion

shown by the two series was not substantially different—$8/2 billion for the adjusted plant and equipment series and $10

billion for the other.

Unfortunately, the collateral statistical

information that was available for checking which of the two series might be the

more correct was quite limited. About the

only definitive finding pointed to the rise

shown by producers' durable equipment

from 1954 to 1955 as being too large. The

rough test that was made in this connection

involved splitting out the estimated share

of producers' durable equipment purchased

by manufacturers, and comparing the results with investment expenditures as reported in the Census Bureau's Annual Survey of Manufactures.

The course we followed, which was influenced only in part by this test for manufacturing, was to make sizable adjustments

in the equipment-construction totals. The

estimates actually used were derived essentially by averaging the movements of the

adjusted plant and equipment and equipment-construction series from 1954 to 1956.

For the year 1955, the sum of producers'

durable equipment and construction as included in the gross national product is

about $2/2 billion lower than that initially

estimated; for 1956, the corresponding adjustment was roughly $l/ 2 billion.

In point of fact, the various adjustments

that were imposed on the equipment-construction series by use of the adjusted plant

and equipment series were made wholly in

producers' durable equipment. The construction series was not assigned part of

these adjustments by reason of the fact that

it is prepared by another agency and published in a detailed breakdown, and our

changing it for this purpose would have

been inappropriate and would have resulted in confusion and inconvenience on

the part of users.

The adjustments made to producers'

durable equipment in 1950, 1952, and

1954—$1 billion each—were fairly moderate, amounting to about 5 percent of

total purchases of equipment in each of

those years. The adjustment was spread

proportionately among the various commodity groups, as published in table V-5.

The adjustments for 1955 and 1956 were

too large, however, to warrant the maintenance and publication of the commodity

breakdown of producers' durable equipment. It is therefore because of the lack of

consistency shown by the several fixed capital formation series in the period from

1954 to 1956 that we have discontinued—

at least temporarily—the commodity

breakdown of the producers' durable series

after 1954.

SUMMARY NOTE

The procedure which we have followed

of giving weight to the Plant and Equipment Survey was, in part, for the purpose

of achieving a reasonable statistical consistency between the type-of-product data

provided by the producers' durable equipment and construction activity series, on

the one hand, and the industry data provided by the survey, on the other. More

directly, the procedure was intended to

lessen the error in fixed nonresidential investment and also—in this respect—in the

total GNP. We have used the adjusted

plant and equipment data to check upon

and alter the movements shown by the combined total of producers' durable equipment and private nonresidential construction, so that the influence of these two

series in the GNP has been reduced substantially.

The statistical situation in this area of

fixed investment obviously is not satisfactory. The need for better data is clearly

indicated.

There is one point still to be noted—

a procedural one. The foregoing brief account carried the methodology only

through 1956, which was the latest year

for which it was possible to prepare estimates of producers' durable equipment by

the commodity-flow method. It remains

to be added that for the current period—

1957 and 1958 at the present writing—

the estimates of producers' durable equipment, quarterly as well as annual, are obtained through extrapolation by the plant

and equipment series. For the July 1959

National Income Number of the SURVEY,

for example, commodity-flow estimates of

producers' durable equipment will be prepared for 1957; the procedure based on a

comparison of producers' durables plus

construction with the adjusted plant and

equipment series will be resumed; and the

latter series will again be used as the basis

for the current extrapolations.

OTHER

COMPONENTS

Following the descriptions of the work

done on personal consumption expenditures and producers' durable equipment,

attention is now directed to the statistical

changes made in the other components of

GNP. These are discussed under the headings of residential construction, nonfarm

inventories, farm inventories, foreign transactions, and government.

RESIDENTIAL CONSTRUCTION

Revisions in the additions and alterations component of the series on private

nonfarm residential construction, prepared

by the Bureau of Labor Statistics, have

been incorporated into the gross national

product. Their effect is to raise the level

of the series substantially for the postwar

period. In magnitude, the revisions vary

from $/ 2 billion in 1945 to around $3/ 2

billion in recent years.5 They amounted to

roughly 25 percent of the previously published nonfarm residential building total

for most years, although the proportion is

higher for the early postwar period.

The postwar estimates of expenditures

for residential additions and alterations

had been derived from the BLS regularly

published series on the value of building

permits issued for residential additions and

alterations, adjusted for undercoverage. As

reported in a Technical Note appearing in

the June 1957 Construction Review, joint

publication of the Departments of Commerce and Labor, a new benchmark estimate was prepared for 1950 and the building permit information was then used to

extend it to other years. More precisely,

the latter information provided the basis

for extrapolation back to 1947 and the link

between the new and old series was concentrated in 1945 and 1946—the BLS

assumption being that all of the discrepancy in level between the two series accumulated during that period.

The 1950 benchmark was developed

mainly from two sources: (1) The 1950

5. Because our revisions of the national income

and product series began with 1946, the 1945 revisions of residential construction was not entered in

the accounts.

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HOW THE ESTIMATES WERE MADE 85

Survey of Consumer Expenditures, which

was made by the Bureau of Labor Statistics to collect data for revising the Consumer Price Index and (2) the Federal

Reserve Board's Survey of Consumer Finances for 1951. The former study yielded

a classification of expenditures for additions and alterations as against maintenance and repairs, but was only urban in

coverage. The FRB survey did not provide

a clear distinction between these two categories of outlays but covered all owneroccupied nonfarm structures.

With regard to using the trend of building permits to move the 1950 benchmark to

other years, the procedure may be said to

have obvious potential weakness by reason

of the fact that such data had proved to be

a very deficient indicator of level. On the

other hand, a BLS test shows that the results checked fairly well for most years

against an alternative series derived by basing the extrapolation from 1950 on FRB

estimates of owners' total expenditures on

their homes (including maintenance and

repair as well as major additions and alterations ). The maximum difference occurred

in 1947, for which the extrapolation based

on the FRB data yielded an estimate of additions and alterations about $360 million

higher than the figure of $1,960 million

derived from the trend of building permits.

Despite this substantial revision, the basic

data for estimating the value of residential

construction remain unsatisfactory. The

situation was pointed up most recently in

connection with tabulations from the 1956

National Housing Inventory. After such allowances as are possible for differences in

definition and coverage, the NHI samplebased data on units added by new construction from April 1950 to December 1956

were found to exceed substantially the BLS

series on new nonfarm dwelling units

started during the same period. The latter

series figures prominently in the estimates

of value of nonfarm residential construction as entered in the gross national

product.

This basic discrepancy in the housing

statistics was reported in the Census Bureau's news release of November 23, 1957,

on the National Housing Inventory. It was

noted there that special field surveys would

be conducted in the attempt to obtain a

quantitative evaluation of the discrepancies

now apparent, and to establish the basis

for achieving the largest feasible degree of

comparability between the two series.

As analytical work in this difficult area

goes forward, careful attention will be given

to the implication for the national income

accounts of existing BLS and Census data

and of the results of future surveys.

NONFARM INVENTORIES

The statistical revisions which have been

introduced into the annual estimates of

change in nonfarm business inventories

stem mainly from the availability of Internal Revenue Service data on book values

for 1955 and 1956. The 1955 data were included in the usual Statistics of Income

tabulations; those for 1956 were provided

in Business Indicators, the new report series

previously noted.

For 1957, the estimated changes in book

values were based chiefly on the following

sources: For manufacturing, the OBECensus monthly Industry Survey, supplemented for this purpose by special tabulations covering a group of large corporations not reporting to this Survey; and for

trade, the OBE regular wholesale and retail samples plus preliminary information

from the Census Bureau's Annual Retail

Trade Survey for 1957.

It may be observed in this connection

that the inventory valuation adjustment

has been changed only slightly in the latest

figures. The smallness of the revisions

should not be taken to mean that this series,

or the underlying revaluation of book values, is firmly based. On the contrary, adjustment of the reported book value data

to a current cost basis required for national

income accounting involves quite difficult

estimation. The generally limited scale of

postwar revisions in the inventory valuation

adjustment—which is characteristic of this

series—signifies only that the final sources

of price information used in the revaluation procedure do not differ significantly

from the preliminary information on which

the estimates are based initially.

FARM INVENTORIES

The farm component of "Change in

business inventories" is measured by the

Agricultural Marketing Service as the difference between physical quantities of

crops and livestock on farms at the beginning and end of the year, multiplied by

average prices for the year. It is derived

as the sum of separate State estimates for

individual crop and livestock items. No

inventory valuation adjustment is required

since the farm inventory changes are computed directly from data on physical stocks

and current prices.

The procedure of using average prices

for the year—average State prices received

by farmers—to value the changes in physical stocks was adopted by the Agricultural

Marketing Service 3 years ago. (See the

Farm Income Situation, No. 155, October

31, 1955.) Until then, it was the practice

to value physical change in farm inventories in terms of year-end prices. In connection with the development of farm income estimates for the State personal

income series, however, it was found that

materially different results obtained for

some years when the inventory changes

were valued at annual average prices.

In the measurement of farm income, the

purpose of the inventory change item is to

convert sales to a production basis—to exclude sales out of inventory when inventories on farms decline, and to add income

in excess of sales when inventories on farms

increase. Clearly, valuation of inventory

change at average prices for the year yields

a measure more comparable to sales than

one based on year-end prices. Accordingly,

the former expedient of using year-end

prices as an approximation of average

prices was discarded, and the entire series

was reworked on the latter basis.

These farm inventory revisions had been

included in the national income accounts

back to 1952. The present volume, however, provided the opportunity to extend

them to 1946. For the years 1929-45, the

change in farm inventories still remains

on the year-end price basis.

The revisions in farm inventory change

just incorporated into the national income

accounts are largest for 1947 and 1948—

roughly $600 million in each year. For the

earlier period, differences between the two

series are substantial ($300 to $400 million) only in 1934, 1936, and 1937.

FOREIGN TRANSACTIONS

The actual statistical changes that have

been made in the foreign component of

GNP are inconsequential. The sizable postwar differences that appear between "Net

exports of goods and services" and the

former "Net foreign investment" item are

definitional in character. As explained in

Chapter 5, they reflect primarily the

changed treatment of Government international transfer payments. More specifically,

the Government's cash grants to foreign

countries no longer enter into the calculation of either net exports or Federal purchases of goods and services, whereas formerly such grants were, on the one hand,

included with Federal purchases and, on

the other, deducted from exports (along

with imports) in the derivation of net

foreign investment.

The new handling of international cash

grants thus involves offsetting changes in

the Federal Government and foreign segments of gross national product. The concept of net foreign investment is retained,

but the measure of it appears as an entry

in the Foreign Transactions Account rather

than as a component of GNP.

GOVERNMENT

The annual postwar estimates of Federal

Government purchases are appreciably

lower than before, because of the changed

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treatment of international transfers. Statistical revisions of the various series on

Federal expenditures and revenues are extremely minor, and routine in nature.

A considerable amount of new work was

done on the State and local government

series, but this entailed only small changes

in the figures since the preliminary estimates were found to measure up quite well.

Revisions were made in local government receipts and expenditures for the

years 1946-51 on the basis of the Census

Bureau publication, Historical Statistics on

State and Local Government Finances,

1902-53, published in 1955. This report

coordinated and classified on a consistent

basis a large body of statistical materials on

State and local government finances for

selected years of this half-century period.

Benchmarks from this source were introduced into the present estimates for the

years 1946, 1948, and 1950. Corresponding

data for 1952 and 1953 as reported in this

source already had been incorporated

into our estimates from earlier Census

publications.

Developments in the Estimation

of National Income

Revising the estimates of national income posed a quite different—less formidable—problem from that just described for

the gross national product. This was because the two sides of the accounts differ

greatly in the character of their underlying

data sources. In essence, important components of the GNP—consumer commodities, consumer services, and producers'

durables—are dependent on periodic censuses, whereas the estimates of national income do not rest on census enumerations

to any appreciable extent.

The estimates of wages and salaries,

which account for over three-fifths of the

total national income, are constructed

mainly from information which is available annually. Important examples are the

payroll data tabulated from reports by

business for social security purposes, and

the figures reported by the Federal Government on the disbursements made to its

civilian and military personnel. While census information is utilized in estimating

wages and salaries in certain industries, its

importance to this area in general is distinctly secondary.

NEW TREASURY DATA

With respect to the next two largest components of the national income, the various

industrial and population censuses are not

used at all in the series on corporate profits,

and figure only to a minor degree in the

estimation of the income of unincorporated

nonfarm enterprises. These components

are founded almost entirely on Internal

Revenue Service tabulations of the Federal income tax returns of corporations,

individuals, and partnerships.

For corporations, tabulations have been

prepared on an annual basis in substantial

industrial detail, but in the past did not

become available until more than 2 years

after the year to which they referred. For

example, at the time the 1956 estimates

were reported in the July 1957 National

Income Number of the SURVEY OF CURRENT BUSINESS, IRS profits tabulations

from corporation income tax returns extended through 1954, and it was necessary to project the comprehensive data

for that year to 1955 and 1956, and then

currently into 1957, on the basis of a variety

of source materials by industry which were

considerably less reliable.

IRS tabulations of net income and related items in the noncorporate area have

been available on an aggregate basis annually (except for the latest 2 or 3 years),

but less frequently by industry. In the past,

the industry tabulations were not regularized and usually did not cover partnerships along with proprietorships.

Two recent developments in the IRS

data directly benefited the estimates of

corporate profits and income of unincorporated nonfarm enterprises prepared for

this report. The first was the issuance of

the Business Indicators reports for 1956,

which served to advance IRS reporting for

nonmanufacturing corporations and for

sole proprietorships and partnerships fully

one year ahead of the past schedule. And

secondly, since our previous major revision in 1954 the Internal Revenue Service

has compiled and released, in addition to

Business Indicators, several other statistical

tabulations of partnership and/or proprietorship incomes in the recent period.

These additional tabulations, in conjunction with those previously available, enabled us to revise and improve the postwar

series on unincorporated nonfarm business

incomes and to base it, up through 1956

on annual IRS data.

The other components of national in

come—supplements to wages and salaries

net income of farm proprietors, net interest, and rental income of persons—are each

relatively small and are satisfactory except

in the case of the rental series. Again, the

major data sources underlying these components are annual rather than periodic.

FEATURES OF THE ESTIMATES

The foregoing brief summary has perhaps afforded a sufficient basis for making

several generalizations about the quality of

the national income estimates and the nature of the recent postwar revisions of them.

1. The national income is based for the

most part on statistical sources which yield

data annually, and which are of generally

high quality.

2. The accuracy of the national income

estimates for the current period, however,

is affected by the delay in availability of

comprehensive data on business incomes.

The new IRS Business Indicators series

takes on a particular significance for the

national income series because it puts the

reporting of such data on an accelerated

basis and reduces the period for which resort must be had to less satisfactory source

materials for extrapolation.

3. A principal requirement to improve

the national income estimates is better

profits data, covering both incorporated

and unincorporated businesses, for the current period pending the availability of information from the Internal Revenue Service. It may be added that the social security

wage data do not become available in time

for use in the preliminary estimates for the

current year—1958 at present—but that

the current monthly information, mainly

from the Bureau of Labor Statistics, for

projecting the estimates of wages and salaries in the interim has proved generally

adequate.

4. Because the national income estimates

depend to a comparatively small extent on

censuses, the revisions on the income side

of the accounts were in general more

"selective" than the comprehensive statistical recasting which was given to consumer

expenditures for commodities, producers'

purchases of durable equipment, and part

of the consumer services series. However, as

we indicated above, issuance by the Internal Revenue Service of additional income

tax return tabulations permitted this kind

of a systematic reworking to be carried out

in the instance of unincorporated nonfarm

business income.

This section of the chapter describes the

revisions that were undertaken for each of

the components of national income. It also

covers capital consumption allowances,

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HOW THE ESTIMATES WERE MADE 87

ceptual difference between the national income and the gross national product. Other

such items of difference—indirect business

tax and nontax liability, subsidies less current surplus of government enterprises,

and business transfer payments—are not

discussed because these series were left

generally intact.

INCOME BY INDUSTRY

Before discussion of these various components of the national income, note should

be taken of a problem concerning the estimation of its industrial distribution. The

further work we did on this problem did

not lead to a solution; it remains on the

agenda for future research.

Most components of the national income—and the bulk of the total—are distributed by industry on the basis of a

classification of establishments. Corporate

profits and interest, however, are classified

industrially in acccordance with the major

activity (revenue source) of each company

or affiliated system of companies taken as

a whole.

Comparisons of corporate property incomes with other items of national income,

while valid for all industries combined, are

therefore more or less imprecise for any

individual industry. (See the 1954 National Income supplement.) This imprecision varies from one industry to another,

depending in general on the relative importance of multi-industry companies.

Among the industries particularly affected

are the refining of petroleum and nonferrous metals and the manufacture of motor

vehicles—which include substantial profits

from economic activity that is classified

elsewhere for purposes of measuring other

types of income—and petroleum and metals extraction, where the reverse condition

exists. As can be seen, industry comparisons with respect to total income originating are also affected in such cases.

In principle, the noncomparability could

be removed either by allocating the corporate profits and interest of multi-industry

enterprises among the different establishments they own or by regrouping the other

income flows from such enterprises on a

company basis.

The latter solution would avoid difficult

problems of cost accounting that arise in

the allocation of profits among various

establishments owned by a company. In

spite of these problems, however, a national

income breakdown based on the classification of establishments is preferable in

general, because it serves better all the

varied analytical purposes which require

information about the type of productive

activity in which business units are engaged.

As a practical matter, neither of the two

solutions can be carried through the national income tables without considerably

more primary data than are now available.

The information at hand is generally sufficient to indicate that the noncomparabilities in the present national income measures

are significant for certain areas of the economy; but it does not provide a basis for

quantitative adjustments to eliminate these

noncomparabilities.

A statistical source apparently holding

some promise is a series of sample tabulations by the Internal Revenue Service of

corporate tax returns showing substantial

amounts of depletion. These tabulations

provide figures on "net income subject to

depletion" attributed by the taxpayers to

depletable properties yielding specified

minerals. In principle, such figures could be

used to construct a rough series of mining

profits on an establishment basis, comparable to the payroll series. Unfortunately,

these sample tabulations are so far available

for a few years only. Moreover, the fact that

the net income allocations serve as the

basis for determining allowable percentage

depletion appears to have impaired their

usability for the purposes here envisaged.

Pending solution of this latter problem, an

extension of the tabulations to cover a

longer period of time, and the development

of materials for a corresponding adjustment in other industries where the problem

is also of considerable importance, we decided against an interim adjustment for

mining in the present volume.

A potential source of comprehensive data

in this area is the Company Statistics program of the Census Bureau. This has so far

yielded cross-tabulations of payrolls and

other items by industry of company and

industry of establishment from the 1954

Censuses of Business, Manufactures, and

Mining Industries. This program is intended to provide a bridge between bodies

of industry data classified on the two alternative bases. The Census data, however,

cannot as yet be satisfactorily tied in with

the tax return materials which are the basic

source of profits data. Because companies

may report to the IRS on a more (or less)

consolidated basis than to the Census Bureau, a substantial number of them may be

included in one industry in the tax return

tabulations while the Census Bureau's company statistics include them in a different

industry.

Again, errors might occur in an establishment allocation of company profits

based on the particular items the Census

Bureau has cross-classified. The closest approximation to profits the latter yield is the

difference between payrolls and total value

added. This difference is much grosser than

profits, and it rests in the end on a valuation of shipments which, for intracompany

transactions, may not be tied closely enough

to market prices to provide a realistic basis

for an establishment allocation of profits.

Finally, the Census experience of 1954 is

not easily generalizable to apply to other

years in the estimation of such a volatile

item as profits.

COMPENSATION OF

EMPLOYEES

The postwar revisions of wages and salaries are quite minor in the aggregate. This

result reflects the generally high quality of

the underlying basic data for this large

component of the national income, although for a few industries the payroll estimates remain statistically weak.

While the new work on wages and salaries undertaken for this report has not in

general affected the estimates significantly,

it has served to refine them in a number of

places. The improvements which have

been introduced are described below separately for the important segment of payrolls estimated from social security data

and for "noncovered" industries.

The estimates of supplements to wages

and salaries have not been altered for

years through 1954; for the subsequent

period, they have been revised to incorporate the Internal Revenue Service tabulation of corporations' contributions to private pension funds for 1955—which was

issued this past spring—and various other

pieces of data now available for 1956 and

1957. This lack of back-year revisions reflects chiefly an absence of additional basic

data; it should not be taken to mean that

the statistical basis of this component is

fully satisfactory. While the supplements

series is a generally adequate one, there are

several ways in which it can, and should,

be strengthened.

ffCovered" Industries

For this report, a somewhat different

method was devised for estimating the total

of wages and salaries paid out in industries covered by the Social Security Act.

This method, which was adopted for the

period beginning with 1951, can best be

described after reviewing the original procedure. This review will also give a background for the second type of revision made

in the "covered" payroll series, namely, the

preparation for recent years of new payroll estimates for "small" firms not covered by the State unemployment insurance

laws.

CHARACTERISTICS OF DATA

Through 1950, the old-age and survivors

insurance (OASI) program and the State

unemployment insurance (UI) programs

covered the same universe of industries,

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88 DATA SOURCES AND PROCEDURES

ranging over virtually the whole of commercial and industrial employment. The

area of the economy thus embraced by the

Social Security Act accounted for about

three-fourths of total wages and salaries

and close to nine-tenths of private-industry

wages and salaries.

The payroll statistics furnished by

neither the OASI nor UI programs were

complete. Only taxable wages were available from OASI, since employers were not

required to report the amounts earned by

employees over the $3,000 taxable wage

base. Under the UI programs, both taxable

and total payrolls were reported by the

establishments covered, but most of these

programs exempted firms with few employees (ranging in that period from 1 to 7,

according to the individual State laws),

as well as firms in business intermittently

or for short periods.

A "control" total for the social security

universe—to which independently derived

industry estimates were adjusted—was prepared for the period through 1950 by adding together the following three parts:

1. Taxable payrolls reported under the

OASI program—that is, the taxable payrolls of all firms under social security coverage, accounting for about four-fifths of the

total payrolls of these firms.

2. Nontaxable payrolls reported under

UI, derived by simply subtracting taxable

payrolls from total payrolls as reported by

employers covered by the State laws.

3. An estimate, based on social security

data, of the nontaxable payrolls of "small"

firms—those small enough to be excluded

from UI coverage by the varying size-offirm coverage provisions of the State laws.

This portion of "covered" wages and salaries not reported under either social security program amounted to less than 1

percent; virtually the entire total was based

on employer-reported data summarized in

the tabulations noted under (1) and (2)

above.

The method used to derive a total of

"covered" wages and salaries was not followed for the separate industries since the

OASI taxable-wage data by industry had

been compiled only from small samples and

were not available for the whole period on

an establishment (as distinct from company) basis. Instead, industry series were

built up from the following components

involving a different, though also integrated, use of the social security data:

1. Total payrolls reported under the UI

programs. These data, which accounted in

the aggregate for almost 95 percent of total

covered wages and salaries in the pre-1951

period, are classified by industry on an

establishment basis.

2. The estimated total payroll of small

firms covered by OASI but not UI. This

estimate was based on OASI special tabulations, usually in connection with the report on County Business Patterns, showing

the taxable payroll for the first quarter of

the given year, classified by State and industry, for firms of a size excluded from

UI coverage. Since virtually all of the firstquarter payroll in such small firms could be

assumed to be taxable, the addition of UI

total payrolls and OASI small-firm taxable

payrolls gave a very close approximation to

total payrolls in each industry in the first

quarter of the year. The ratio of this total

to the UI component—a "small-firm raising ratio"—was applied to the annual total

of UI payrolls in each industry to adjust it

to include the pay in small firms.

3. An unexplained discrepancy. In all

years, the sum of the industry estimates derived from (1) and (2) above fell short of

the overall controlling total. The amount

was always relatively small but varied from

year to year, being $0.8 billion in 1947, for

example, and $0.2 billion in 1950. Adjustment of the industry estimates to the total

was accomplished by allocating the amount

of the discrepancy among them in proportion to the OASI small-firm payrolls.

Beginning with 1951, a problem was encountered in constructing the control-total

of social security payrolls by the method

outlined above. Taxable earnings under the

OASI program (which were raised to

$3,600 and are now $4,200) no longer coincided with those under the UI laws

($3,000), and coverage of OASI was expanded to include some groups not covered under the UI programs. For a number

of years, however, the Bureau of Old-Age

and Survivors Insurance furnished a special estimate of what the OASI taxable

wage total would have been in terms of

the 1950 coverage provisions—thus permitting an extension of the basic procedure.

This estimate was subject to appreciable

sampling variability and, moreover, became more difficult as the period of years

beyond 1950 lengthened. It was therefore

decided, in connection with this report, to

attempt to develop a different method of

handling the control-total aspect of covered wages and salaries.

REVISED METHOD

The method which has been adopted is

a variant of the former approach in building up the individual industry estimates.

For all years since 1951, UI total payrolls

for each industry have been raised to cover

small firms in accordance with the regular

method; and an overall upward adjustment of these results has then been introduced to take the place of what was formerly the "unexplained discrepancy."

The small-firm ratios for this period

have been based on OASI tabulations for

the first quarters of 1951 and 1956, with

straight-line interpolation for the intervening years. It may be noted that the

1956 data—prepared in connection with

County Business Patterns—are new; they

represent a significant addition to the basic

information available for estimating "covered" payrolls, particularly since it had

been necessary to hold constant the relationships indicated by the prior small-firm

study for 1951.

The tabulations furnished by the Bureau of Old-Age and Survivors Insurance

for 1956 showed employment as of midMarch by State and industry in a 2-way

classification by size of establishment (0-3

and 4-7 employees) that approximated the

required definitions very closely. While

direct payroll data of course would have

been preferable, these employment figures

have proved quite helpful. This was especially true because the average pay of

small-firm employees could be estimated

apparently without substantial error, by

reason of the fact that for most industries

on a national basis the ratio of such average pay to that for employees in all establishments had shown essential stability for

the period through 1951.

With regard to the introduction of the

overall upward adjustment noted above,

the need for such an adjustment was indicated by the fact that the sum of the

industry estimates had fallen short of the

controlling total in the past. In other

words, we felt that the UI data adjusted

to cover small firms would probably continue to understate slightly the actual

amounts of "covered" wages and salaries.

In this connection, it was observed that

for the few years for which such a comparison could be made the amount of payroll

estimated by OASI to be missing from

County Business Patterns because of delinquency in reporting closely approximated the unexplained discrepancy between the sum of our industry estimates

and the controlling total. An oversimplified

view of this correspondence would be that

all of the payroll omitted from County

Business Patterns because of delinquent reporting referred to small firms, and thus

was excluded also from the small-firm tabulations used in the national income estimates. Undoubtedly, however, some of this

delinquent reporting was in large firms. To

illustrate with hypothetical breakdowns,

the amount of delinquent reporting in

County Business Patterns for the first quarter of 1947, $0.8 billion at an annual rate,

may have represented $0.6 billion in small

firms and $0.2 billion in the larger firms;

and our $0.8 billion "unexplained discrepancy" for 1947 may have reflected an

undercoverage of $0.6 billion in the OASIbased estimates for small firms and $0.2

billion in the UI figures, with the latter

understatement resulting from the provisions in many State laws that firms are

not subject to UI coverage until they have

been in the requisite size class for a certain

number of weeks, usually 20.

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HOW THE ESTIMATES WERE MADE 89

In any case, the close agreement between delinquent reporting in County Business Patterns and the "unexplained discrepancy" in the years for which both

figures were available led us to use the

former item for 1951 and 1956 to take the

place of what was conceptually the "unexplained discrepancy." For intervening

years the all-industry total of this item was

interpolated by small-firm payrolls. The

resulting figures were distributed among

industries in proportion to estimated smallfirm payroll.

For each year since 1947 the amount of

wages and salaries added to the sum of the

initially computed industry estimates—

under the label of either an "unexplained

discrepancy" or delinquent reporting in

County Business Patterns—has been less

than a billion dollars.

"Noncovered" Industries

In the "covered" area of wages and salaries, revision of the method of estimating

the controlling total and the receipt of

small-firm tabulations for 1956 took care

of the more significant problems. For "noncovered" payrolls, a review of existing

methodology led to improvements in the

estimates for a number of industries, all

of them among the statistically weaker

series.

PRIVATE HOUSEHOLDS

Our former method of estimating the

total pay of domestic servants was to multiply Census employment (from the Current

Population Survey) by an average earnings

series benchmarked on the Census of Poplation and extrapolated by the BLS price

index for domestic service.

Beginning with the year 1954, the Census

Bureau made available unpublished data

on hours worked corresponding to the employment figures. Estimates of total manhours computed from these data when

divided into the previous payroll series

yielded an average hourly pay which appeared high. From the files of the Bureau

of Labor Statistics, however, we tabulated

information on the prevailing wages per

8-hour day paid to domestic workers in

over 50 scattered cities during the months

of 1952 and 1953 (as reported by employment agencies in those cities)—which information implied an average hourly rate

of pay that was lower and seemed reasonable.

The new estimates of wages and salaries

in private households have thus been prepared by multiplying total man-hours by

average hourly earnings, with benchmarks

for the latter interpolated and extrapolated

by the BLS consumer price index for domestic service. The revisions for this payroll series extend back to 1948 and are appreciable for the more recent period, for

which the new figures are less than the former ones by about $I

/2 billion, or approximately one-sixth.

HOSPITALS

Pay in kind has been a weak element of

the series on wages and salaries paid out by

hospitals. Formerly, pay in kind was extrapolated from a 1935 Census of Hospitals

benchmark on the basis of estimated employment multiplied by a weighted combination of the food and rent components

of the consumer price index. To improve

this procedure, we turned to the American

Hospital Association's "Salary Survey,"

which contains much information on pay in

kind by type of hospital, type of personnel,

and type of perquisite (food, lodging, and

laundry). The 1946 and 1956 surveys were

used to construct new pay-in-kind benchmarks, and each type of pay in kind was

interpolated for the intervening years by

the product of employment and the relevant price index (food, rent, and laundry,

respectively). The incorporation of these

AHA data was the major factor in reducing

the overall estimates of hospital wages and

salaries—by almost $400 million, or 15 percent, by 1956.

HIGHER EDUCATION

The U. S. Office of Education published

for the school year 1953-54 total payrolls in

schools comprising the great bulk of all

private institutions of higher education. It

also published for the same schools the ratio

of aggregate payrolls to aggregate educational, general, and auxiliary expense. This

ratio was applied to the comparable expense total in all private higher education

to obtain a benchmark for total payrolls.

The new series is about 5 percent lower

than the superseded one for the more recent period.

Such comprehensive data relating to

payrolls in private higher education had

not heretofore been published by the Office

of Education. The series are to be continued in the regular Biennial Surveys of

that Office.

NONPROFIT ORGANIZATIONS

Part of the expansion of the OASI program in 1951 consisted of making eligible

for coverage on an elective basis the various types of nonprofit organizations exempt

from Federal income tax under Section 101

(6) of the Internal Revenue Code of 1939.

These religious, charitable, scientific, literary, educational, and similar organizations

are exempt from UI coverage and formerly

were exempt from OASI coverage. Only

limited information has been available on

the wages paid in such organizations.

In connection with the 1951 and 1953

editions of County Business Patterns, the

Bureau of Old-Age and Survivors Insurance collected and reported separately (in

"OASI Coverage Statistics, First Quarter,

1953") the payroll in those organizations

which had elected to be covered by OASI.

In the opinion of a representative of that

Bureau, the bulk of the organizations eligible had elected to be covered by 1953.

We did not use the OASI data for hospitals, schools, and colleges since more comprehensive information for these types of

organizations, including implicitly the Section 101 portion, was available from other

sources.

For all other organizations represented,

the amounts reported by OASI for 1953

were used to derive benchmarks for this

category of payrolls in the industries concerned. Since these amounts were necessarily minimums, we raised them by 10

percent for each industry except religious

organizations, where a 25-percent raising

factor was applied on the assumption of

a relatively smaller coverage on an elective

basis.

In total, approximately $1 billion of payrolls is included in the 1953 estimates on

the basis of these OASI data. This amount

is not a net addition to the wage and salary

totals since in various industries the figures

based on OASI data were used as benchmarks to replace weaker estimates. However, in some industries and parts of industries, most significant of which was "civic,

social, and fraternal organizations," the

new data provided estimates for categories

of payrolls not previously included in the

national income.

INCOME OF UNINCORPORATED

ENTERPRISES

The estimates of income of unincorporated nonfarm business establishments

have been revised back to 1948. This latest

of several periodic reviews of source materials and procedures in this difficult area

can be said to have improved the statistical basis of the series quite significantly.

Estimation in this field has generally required the laborious piecing together and

adjustment of various types of data from

numerous sources, some only inferentially

connected with noncorporate business income. While such difficulties remain a

characteristic of the work, the enterpreneurial income series now, for the first time,

is founded for an appreciable span of years

on a comprehensive and uniform body of

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statistical data. Reference is had to taxreturn tabulations by the Internal Revenue Service (IRS) of the incomes of sole

proprietorships and partnerships covering

the period from 1945 through 1956.

This basic information is fully incorporated into the estimates contained in this

volume. IRS tabulations for 1945 and 1947,

the first comprehensive data on the incomes of unincorporated nonfarm enterprises, had previously been utilized, along

with certain other tabulations of this type

which were available for a few succeeding

years. For the present report, the post-1947

series was thoroughly revised in light of the

substantial volume of additional tax-return

information compiled and issued by the

Internal Revenue Service in the past several years. A variety of other source materials also went into the calculations, but

the new IRS reports were of overriding

importance.

The revised estimates of the income of

unincorporated business and professional

enterprises differ appreciably from the former series. In the main, the revision is a

statistical one, with the IRS and other data

indicating a higher level, particularly for

recent years, than had been estimated from

the incomplete and less direct materials at

hand. Part of the revision, however, stems

from an extension of the scope of the estimates. A careful reexamination of the

coverage provided by our estimates of the

various types of noncorporate forms of

organization indicated the advisability of

attempting to fill certain gaps which had

previously been neglected because of the

crudity of available basic data and the presumably small amounts involved. Examples

of such omissions which have been remedied at least roughly are afforded by mutual

nonlife insurance companies and enterprises owned by fiduciaries. For these, as

well as for miscellaneous other types of noncorporate organizations not covered in the

past, the estimated annual net income for

the recent period amounts to about $^4

billion.

In the work on nonfarm entrepreneurial

income just completed, separate estimates

were made for approximately 65 industries

listed in table 1-10, which shows the industrial origin of national income. Because

of the general inadequacy of the entrepreneurial series on a "2-digit" industry basis,

the series is not published in such detail but

only, as in table VI-4, for broad industry

divisions. Revisions were quite sizable, however, even for some of these broader categories, and serve to point up the extreme

difficulty of estimating entrepreneurial income well, particularly on an industry

basis.

The significant improvement in the new

estimates noted above is relative only.

There are still a number of ways in which

the nonfarm entrepreneurial income series

can be made more reliable. Probably the

most essential need in this regard, as recorded in the final section of this chapter,

is for periodic, comprehensive audit studies

by the Internal Revenue Service along the

lines of the one for 1949 already embodied

in the figures.

INTERNAL REVENUE SERVICE DATA

Two sets of IRS data, both derived from

samples, were utilized for preparing annual

estimates of the income of unincorporated

business and professional enterprises for the

period beginning with 1948. One consisted

of periodic tabulations by industry of the

net income, sales, and related items reported by (a) individuals (sole proprietorships) on the business schedule of their

Federal income tax returns, and (b) partnerships on their mandatory informational

returns to the Government. Tabulations for

sole proprietorships were available for 1949,

1951, 1953, 1954 (in a limited industry

breakdown), 1955, and 1956; partnership

data were reported for 1953 and 1956.

The other series of IRS information,

which was available annually for 1948-55

without an industry breakdown, showed

the total net income from (a) individually

owned businesses, and (b) partnerships as

reported by individuals on the "face" of

their Federal income tax returns. With specific reference to the individual income tax

return (form 1040) for 1955 and other

recent years, item (a) was a combination

of lines 8 and 9 on page 1—"Profit (or loss)

from business" and "Profit (or loss) from

farming"; and item (b) represented "Income from partnerships" as tabulated from

page 3, schedule H (line 1). Of further

note, item (a) consisted of amounts transferred by individuals from schedules C and

F of the form 1040 return; item (b), which

was part of line 10 on the "face" (page 1)

of the return but not shown separately

there, represented a reporting by individuals of the amounts distributed to them

by partnerships, whereas the partnership

figures included in the industry tabulations

were taken, as already noted, from the returns of the partnerships themselves.

SUMMARY OF METHOD

The tabulations from the Internal Revenue Service outlined above became the

principal basis for an estimating procedure

for the period 1948-55 which may be said

to have consisted in essence of the following steps:

1. Filling in, through estimation, the

gaps in IRS industry data—that is, estimating by individual industry groups the

total net income of sole proprietorships and

partnerships for 1948, 1950, and 1952 and

of partnerships alone for 1949, 1951, 1954,

and 1955.

2. Adjusting (proportionately) the re

sultant 1948-55 industry figures, year b)

year, to a controlling total developed primarily from the IRS "face-of-return" information.

3. Adjusting for incompleteness, or undercoverage, in the IRS universe, as measured against census information on sales

or number of proprietors.

4. Allowing for differences in industrial

classification between the IRS tabulations

and the system followed in the national

income.

5. Raising the figures to correct for the

understatement of net income reported on

tax returns—largely on the basis of a special IRS audit study made some time ago

for the year 1949.

6. Adding in the estimated business incomes of certain types of proprietors or

noncorporate entities not covered, for one

reason or another, in the IRS sole proprietorship and partnership tabulations.

The main new feature of this methodology was step 2—the development of annual

"control" totals so as to eliminate from aggregate unincorporated nonfarm business

income the errors arising from the necessary use of estimation by industry because

IRS data were not available at all for some

years and only in part for others. With the

incorporation of such controlling totals,

the income of unincorporated business and

professional enterprises included in the

national income accounts represents essentially the annual totals tabulated from

individuals' Federal income tax returns, adjusted upward to allow for understatement

of reported net income and for the estimated amounts of income not covered altogether by these returns.

The various adjustments made to IRS

data may take on a more precise meaning

from the additional notes on methodology

given below. It is first to be noted, however,

that the actual procedure of estimation

varied somewhat from the 6-step method

which has been summarized. The latter, it

is believed, sets forth the essence of the

matter more clearly than would an outline

of the actual way in which the estimates

were prepared. Because of statistical convenience, and mostly to avoid unnecessary

computations, the procedures which were

used differed as follows from those outlined

above:

1. The industry information for sole proprietorships and partnerships reported by

the Internal Revenue Service was adjusted

for undercoverage (step 3), differences in

industrial classification (step 4), and understatement of reported net income (step

5) before estimation was employed to extend the industry estimates to all years of

the period.

2. Adjustment to the controlling total

came next. However, the total was of course

adjusted for this purpose to include the

amounts by which the industry figures had

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HOW THE ESTIMATES WERE MADE 9i

been increased by the estimation involved

in steps 3 and 5. It is recognized that this

adjustment caused the control-total to lose

in part its statistical independence of the

industry estimates, but it should be added

that the actual results differed not at all

in the aggregate and inconsequentially by

industry from those which would have obtained if the 6-step method summarized

above had been followed literally.

3. The final step was the same as in (6)

above—allowing for incomes of proprietors

outside the scope of IRS coverage.

PREPARATION OF INDUSTRY SERIES

It has been noted that the reported IRS

net income data for individual nonfarm

industries required adjustment for any incompleteness of coverage and for differences in industrial classification. Important

new source materials for making both types

of adjustment were provided by the 1954

censuses of business—covering retail trade,

wholesale trade, and the services—manufactures and mining.

Procedures for incorporating the 1954

Census information, for raising the estimates for understatement in reporting on

the original tax returns, and for making

interpolations to derive the initial estimates

of business and professional incomes by

industry for years not covered by the IRS

data were, in general, similar to the methodology for 1947-49 described in the 1954

National Income supplement.

Allowance for understatement in the

IRS tax-return data was a particularly

important step in procedure. The chief

basis for making it was an IRS intensive

audit for 1949, based on a representative

sample, giving primary emphasis to business income reported by individuals. The

study was carried on by experienced field

investigators through direct contact with

taxpayers and examination of their records.

This IRS audit permitted an adjustment

to be made, by industry, of the net income

reported for tax purposes by individual

proprietors. For lack of data, the same relative adjustment was applied to the income reported by partnerships, although

collateral audit information indicated that,

insofar as size-of-firm differences alone

were determining, a lesser adjustment

might have been in order. More important,

it was necessary to use the 1949 audit allowance for an industry for all years of the

series (from 1929 to 1957).

Another type of audit adjustment, as it

were, is included in the estimates of the

income of professional practitioners.

These estimates have been derived for

the most part by multiplying the number

of professional persons in independent

practice by average net income figures denved from mail questionnaire surveys of

466759 0—59 7

the major professions conducted by the

Office of Business Economics. The latest

such survey, covering the legal profession

for the years 1947-54, was utilized in this

report.

Estimates of postwar professional incomes obtained by this approach have generally been moderately higher than those

based on IRS data adjusted for audit.

While the difference involved, around $5/2

Apart from the audit and undercoverage

adjustments, noted above, that were introduced into the control totals to make them

conform with the industry estimates, an

annual series of these totals was derived

by adjusting as follows the IRS face-ofreturn amount of business and professional

income reported on individual income tax

returns:

1. The estimated amount of net farm

Fig. 35

Distribution of National Income, 1957

Total $364 Billion

Rental Income 3.3 %

Net Interest 3.5 %

billion a year recently, may reflect statistical errors at least in part, it has been

retained in the estimates and viewed as a

kind of audit adjustment.

OTHER PHASES OF PROCEDURE

The development of control-totals formalized into a regular procedure the previous use of the face-of-return information

as a check on the "sum-of-industry" estimates. (See the 1954 Supplement, pp.

82-83.)

income included in the face-of-return total

was subtracted. This figure was available

from the IRS industry tabulations for the

years noted above, and was obtained for

other years by interpolation on the basis

of the Agriculture Department's annual

series on net income of farm operators (exclusive of noncash items of income).

2. Allowance was made for differences

in definition between net income reported

on tax returns and included in the national

income accounts. Under this heading came

the adding back of deductions that had

been taken for depletion allowances and

the subtraction of several items (such as

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92 DATA SOURCES AND PROCEDURES

dividends and interest received by partnerships and earnings of insurance solicitors)

that are counted in other components of

the national income. All together, these

allowances for definitional differences,

based mostly on IRS tabulated data for

selected years, entailed a lowering of the

reported face-of-return total by $300-400

million a year in the postwar period.

The controlling totals derived in this

manner were then subjected to a statistical

check. This involved IRS data on sole

proprietorship income, which accounts for

two-thirds of the business and professional

universe. The total of such income reported

in the IRS industry tabulations (for 1947,

1949, 1951, and 1953-55) was compared

with that derived from the face-of-return

information (reported total adjusted to

exclude farm income). Very good agreement was found except for 1954 and 1955,

when the two series showed a considerable

divergence.

No explanation of this was found. Statistically, the face-of-return figures are regarded as probably somewhat superior to

the industry tabulations, but one cannot

be sure and the latter data seemed more

reasonable in this particular instance.

Given this uncertainty, the controlling

totals developed from the face-of-return

information were adjusted downward for

1954 and 1955, by averaging the two sets

of IRS data for sole proprietorships. The

effect of this adjustment on the final estimates of noncorporate business income was

about $54 billion in each of the 2 years.

The control-totals that were obtained by

adjusting the face-of-return figures for

farm income, definitional differences, and

the statistical divergence just noted accounted for three-fourths of the final estimates of unincorporated nonfarm enterprise income. The audit allowances

formed another 15 percent. Part of the

remainder represented estimated incompleteness of IRS coverage in various industries, but the bulk of it consisted of the

incomes of special groups not typically reporting their business incomes on individual income tax returns.

Included here were the income of ownaccount workers in contract construction

(such as carpenters and painters) operating from their own homes (see the 1954

Supplement, p. 80), patronage refunds

and stock dividends paid by farmers cooperatives, incomes from businesses owned

by fiduciaries, and the net profit of mutual

nonlife insurance companies. These and

other such items total around $2 billion a

year and, on the whole, have an unsatisfactory statistical basis.

ESTIMATES FOR 1956 AND 1957

For the year 1956, for which face-ofreturn totals were not yet available from

the Internal Revenue Service, the estimates of business and professional incomes were based on an extrapolation

from 1955 by industry figures constructed

primarily from IRS tabulations. It is to be

noted that the IRS data that were used for

1956—covering both sole proprietorships

and partnerships—were the product of the

accelerated tabulation program embodied

in the Business Indicator series. The availability of 1956 industry tabulations in time

for the preparation of the detailed national

income statistics for 1957 represents a

marked improvement over the earlier 2-

year time lag which had characterized IRS

reporting in this area.

For 1957, pending the availability of taxreturn tabulations by industry, the estimates were based on movements from 1956

indicated by such data as retail sales, construction activity, wages and salaries, and

corporation profits. To obtain the benefit

of appropriate weighting, the extrapolations were carried out in as much industry

detail as possible.

It is to be emphasized, however, that

the data underlying these current extrapolations were, for the most part, fragmentary and only indirectly relevant. For this

reason, the changes in nonfarm proprietors'

income shown for the period beyond the

latest reporting of IRS data are subject

to possibly substantial error.

Farm Income

The Agricultural Marketing Service of

the Department of Agriculture furnished

for this report a new set of figures on the

net income of farm proprietors for the

years 1946-57. Most other farm items that

enter the national income and product

accounts were also modified.

For the early postwar years, these revised

estimates of farm proprietors' income are

appreciably higher than the figures they

replaced in our tables. The annual differences in the period 1946-48 vary from

about $1 billion to $1^2 billion, or from 6

to 9 per cent. The corresponding changes

are less for the years 1949-51, and become

quite small in the subsequent period.

The above differences for the years

1946-51 mainly reflect the AMS revision

made 3 years ago, which we had not had

the opportunity to incorporate into our

tables. This revision, which was presented

and described in the October 1955 Farm

Income Situation, centered primarily in

depreciation charges and inventories. The

main points involved are covered in this

chapter by the separate notes provided on

these items.

The current revision of the AMS farm

income and expenditure estimates—presented in the July 1958 Farm Income Situation—has had the effect of raising nei

income slightly for the years 1946-52, anc

of changing it very little thereafter, in comparison with the series established in 1955.

In this most recent effort, complete adjustments were made to the 1954 Census

of Agriculture and several other changes

in data and procedures were introduced.

Our tables thus incorporate the latest

AMS estimates of farm proprietors' income

and related items for the years since 1946.

This is not true for the period 1929-45, for

which revised AMS series were also prepared in 1955, a year following our own

revisions of the national income and product estimates back to 1929. However, the

differences between the 1929-45 farm

income figures carried in our tables and

the ones which superseded them in the

1955 AMS report are generally small. The

latter, revised series is shown in table

VII-12 of the Statistical Section.

Attention may be called to the program

of farm income reporting developed by the

Office of Business Economics and the Agricultural Marketing Service in early 1956,

with the cooperation of the Office of Statistical Standards of the Bureau of the

Budget. The essential feature of this program is an agreement on the part of OBE

and AMS to carry in their reports the same

figures on farm income, both quarterly and

annual. In the past, differences in publication schedules and in the timing of revisions

had prevented a synchronization of farm

income data in the publications of the two

agencies. The new arrangement—now in

its third year—is a benefit to the many

individuals who make joint use of the OBE

and AMS income reports.

OTHER

COMPONENTS

Included under this heading are descriptions of the new statistical work which has

been done in four remaining areas on the

"income side" of the national income and

product account: Rental income of persons, corporate profits, interest, and capital

consumption allowances.

The statistical revisions in these four sets

of measures were of a selective character.

As we have indicated earlier, the more

basic, "top-to-bottom" kind of statistical

reworking such as was done for the estimates of consumer commodities, producers'

durables, and business and professional income was not involved.

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HOW THE ESTIMATES WERE MADE 93

Rental Income of Persons

The postwar revisions of rental income

of persons incorporate a somewhat simplified estimating procedure and a variety of

new source materials. Their effect was to

lift the net rent series a few hundred million dollars in most years; the largest revision (that for 1956) amounted to $0.6

billion, or 6 percent. At the same time, beginning with 1951 estimated consumer expenditures for rental of tenant-occupied

dwellings were revised upward, and spacerental values imputed to owner-occupied

dwellings revised downward, by amounts

ranging up to $0.8 billion annually.

Rental income of persons is estimated as

the sum of three components. The largest

of these consists of the returns (net rents

and royalties) from rented nonfarm property. Approaching it in magnitude is the

imputed net return from owner-occupied

nonfarm dwellings. The third component

is net rent from farm realty; this is

measured by use of data from the Department of Agriculture, and is revised in the

present report only to incorporate routine

minor revisions in these data. The discussion below is confined to the nonfarm cash

and imputed components.

RENTED NONFARM PROPERTY

The estimates of the former—persons'

net rental income from nonfarm property—had been derived through a rather

intricate procedure described on pages 86-

91 of the 1954 National Income supplement. This procedure included a detailed

structural analysis of gross rent flows and

expenses—a framework which facilitated

the consistent use and interpretation of all

available data on rents. The net rent

measure, however, emerged as the last in

a series of residuals obtained by differencing

relatively larger items, so that its margin

of error was substantial despite the

thoroughness with which the data were

exploited.

An alternative measure, based on the

totals of net rents and royalties reported by

individuals and fiduciaries for income tax

purposes, has been maintained from year

to year as a check. This series is also subject

to a variety of weaknesses. Inclusion of an

uncertain amount of farm rent, gaps in the

data for fiduciaries, incompleteness of coverage, and a response bias offset entirely

or in part by taxpayers' neglecting in some

cases to charge interest and tax costs

specifically to the rental properties they

hold—these are some of the major sources

of error in the measure based on tax returns. Adjustments, necessarily rough, are

made for the first two only.

These alternative rent series moved together prior to World War II (allowing

roughly for changes in the coverage of the

tax data), but diverged after 1941, when

an apparent sharp downward bias began

to appear in the tax return measure. Since

1947, however, the latter again has been

consistent in movement with the more

elaborately based series and has been substituted for it in the basic procedure. However, an abbreviation of the old method is

still used to obtain an extrapolator for the

two most recent years, for which the tax

data are not yet available.

OWNER-OCCUPIED NONFARM DWELLINGS

The estimates of imputed net rent from

owner-occupied dwellings—and of the

space-rent or rental value of nonfarm

housing—have also been revised, to incorporate new source materials. The framework of estimation described in the 1954

Supplement has been retained.

One of the most important of the new

data sources was the Census Bureau's 1956

National Housing Inventory. This was used

in the preparation of estimates of the total

number of dwellings, and to revise the

allocation of the total between owneroccupied and rental housing. It also provided new information on the course since

1950 of rental rates and of facility and

utility costs.

Data from a number of other surveys by

the Census Bureau also made possible an

improvement in the postwar rent estimates. The regular samplings of households

and families (Series P-20) and of dwelling

vacancies and occupancies (Series H-lll)

were used in interpolating and extrapolating the number and distribution of dwelling

units. The 1954 survey of "fixup" expenditures provided a new benchmark on home

owners5 repair and maintenance costs.

Advance releases of the 1957 Census of

Governments, dealing with real estate assessments, furnished a basis for revising the

tenure distribution of taxes and of value of

nonfarm dwellings.

Among new materials from other

sources, several were supplied by the

Bureau of Labor Statistics. A special tabulation of changes in the rental rates on

one-family homes included in the Bureau's

sample underlying the rent component of

the Consumer Price Index was used to

adjust the trend of mean imputed rental

values. An index of insurance costs from

the same source was applied in determining

the course of landlords' expenses for fire insurance, which are deducted in estimating

home owners' net rental income. Another

such deduction, for depreciation, was revised to reflect in the depreciation base the

new and higher BLS estimates of the value

added by additions and alteration.

Despite the revisions which have been

outlined, the rent estimates continue to be

among the least satisfactory components of

the national income statistics. This condition is largely ,a reflection of the heterogeneity, poor statistical quality, and serious

gaps which characterize the basic data at

many points.

Corporate Profits

Revisions in corporate profits were moderate in the earlier postwar years, averaging around three-quarters of a billion

dollars for the before-tax series in the

period 1950-54. For the years 1955-57,

they ranged up to $2^2 billion, or 6

percent.

Several factors contributed to the 1948-

54 revisions. The data base previously used

in evaluating the effects of IRS audit on

the underlying income tax statistics was

discontinued, and was replaced by a new

one which tended to raise the estimates.

The inclusion for the first time of an allowance for the operating profits of speculative

builders classified by IRS as gain from

sales of property had a similar effect.

Working generally in the opposite direction, but of small influence dollarwise, was

the introduction of a better method of

treating the profits earned by foreign

branches of United States corporations.

All three changes represented improvements in the processing of data according

to the basic methodology of corporate

profits estimation.

For the post-1954 period, the effect of

these was augmented by the incorporation

of Statistics of Income profits data for 1955

at a level more than $1 billion higher than

had been indicated by the extrapolators

used in the interim. Also incorporated in

the present series are the new Business Indicators reports, preliminary sample tabulations from 1956 tax returns made by the

Internal Revenue Service on an accelerated schedule. Availability of this new data

source annually is expected to improve considerably the reliability of the currentperiod estimates for nonmanufacturing

industries, to which it is confined. Only

for the terminal year and for the current

quarterly estimates is it now necessary to

rely on the heterogeneous data described

for these industries on pages 95—96 of the

1954 Supplement. It should be noted, however, that the Business Indicators for 1956

did not require a significant change in the

overall movement previously shown by the

profits estimates; the 1955-57 change in

the new estimates is substantially the same

as that shown earlier.

ALLOWANCE FOR AUDIT

The revisions made in the allowance

for profits disclosed by audit reflected the

adoption of a new method. This was

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94 DATA SOURCES AND PROCEDURES

required by data developments, and is

believed to provide a more adequate view

of the facts.

The old procedure involved inferring

the ultimate amount of audit for a given

year from the incomplete results reported

up to the time of estimate. The inferences

were based on time patterns constructed

from IRS cross-tabulations of audit results

by year when obtained and by year in

which tax liability had accrued. Since the

audit data were in terms of additional tax

liability rather than of additional taxable

income found, special problems were encountered also in the treatment of corporations reporting no net income. Finally,

as bases of universe estimates, the data did

not provide an adequate coverage of small

corporations.

Beginning with 1952, the tax-year detail

of additional tax assessments was replaced

by tabulations by asset-size class, which

provide extensive coverage for the larger

corporations. Also, a special IRS study for

1949 served to indicate the extent of the

additional profits and tax liability applicable to the smaller size group, including

deficit corporations. The two sets of

source data were used in combination to

derive a comprehensive estimate of the general level of audit profits for the early 1950s.

Year-to-year variations around this level

for the postwar period were based primarily on the movements of total compiled

deductions and of Federal tax liability

(prior to audit).

OTHER CHANGES

With respect to the introduction of a

special allowance for the profits of operative

or speculative builders, IRS data for these

concerns are reported in such a way that

the bulk of their income appears as "gains

from sale of property other than capital

assets." Income so reported by the IRS had

been excluded from the national income

measure of corporate profits, being interpreted ,as essentially a capital gain. The case

of operative builders is now recognized as

an exception, and their profits are calculated without deducting this item.

Improvements in the international elements of the profits flow have been made by

use of IRS tabulations of information filed

in support of claims for tax credits for foreign income taxes paid. In particular, the

industry distribution of corporate profits

has been strengthened by the revised allocation of foreign branch profits. Formerly,

the amounts of such profits included in the

IRS industry data were unknown, and the

estimates made of them were tenuous. With

the tabulations referred to above, it has

been possible to remove approximately the

actual amounts of branch profits and, with

adjustments to balance of payments concepts and timing, to assign them to the

"rest of the world" industry.

The estimates of corporate profits tax

liability, after-tax profits, net dividend

payments, and retained net income, as

well as of profits before tax, have been

revised in' the present volume. The revisions in tax liability and in dividends

have been relatively small. Of these two

series, the former has been estimated for

the most recent years in the light of reported tax collections as well as beforetax profits, and was not involved in the

revision noted above for operative builders.

The dividend series was scarcely affected

by the 1946-54 revisions outlined above,

and errors in extrapolating it have generally been small. The revisions which have

been made in before-tax profits, therefore,

have tended to spill over directly into aftertax profits and thence into undistributed

net income.

Net Interest

The estimates of net interest included

in this report for the period beginning with

1948 are uniformly lower by 5 to 7 percent

than those previously published. The revisions of personal interest income, which

includes public debt interest, have been

somewhat smaller.

These changes were made to take advantage of newly available data. BenchCorporate Profits by Industry Groups

Fig. 36

Total

Billion Dollars (ratio scale)

100

80

60

40

20

1 0 I i i i I i i i I i i t 1 i i i I i i i 1 i i i 1 i i i 1 i i i 1 i i i I i i i 1 i i i 1 i i i 1 i i i 1 I I I

20

10

8

20

10

8

6

Durable-Goods Manufacturing

\ .

Nondurable-Goods Manufacturing

I I I I I I i I I 1 1 1 I 1 l I I I l I l 1 I i i I i i i I i i i 1 i i i 1 I I l 1 I I I 1 I I I I I I 1

Public Utilities

I l l I I I I 1 l l I 1 l I I I l ) 1 1 1 I I 1 I I I 1 I I I 1 I I I 1 I I I I I I l I l l I I I l I 1 I i i

1948 1950 1952 1954 1956 1958 1960

QUARTERLY TOTALS, SEASONALLY ADJUSTED, AT ANNUAL RATES

Note: Data include inventory valuation adjustment

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HOW THE ESTIMATES WERE MADE 95

marks based on tabulations of Federal income tax returns were obtained for the

series on interest paid by nonfarm proprietors and partners; and a minor reduction in the estimates of farm debt interest was made by the Department of

Agriculture. The figures for corporate interest paid and received, like those for

corporate profits, were revised to incorporate Statistics of Income data for 1955. In

the case of consumer interest payments, the

underlying debt estimates were revised upward by the Federal Reserve Board, and

a higher consumer allocation was applied

to automobile debt in line with our allocation study of auto purchases discussed earlier. Outweighing the effect of these revisions in consumers' obligations, however,

was the correction of an underestimate in

the measure of personal finance companies'

interest receipts, which are deducted from

interest paid in our procedure.

These several revisions affected not only

the interest component of national income

but that of personal income as well. A

further change, involving only the former,

stemmed from the new treatment of interest received by the Government from

abroad. This inflow is treated analogously

to a transfer, and therefore is excluded

from national income.

for the earlier period but by about $1 billion a year recently.

This reworking of the nonfarm unincorporated estimates was made possible by

the availability of Internal Revenue Service tabulations of depreciation as reported

on tax returns—by partnerships for 1953

and 1956, and by proprietorships for 1954

and 1956. The 1956 data were reported in

Business Indicators, which, as noted

earlier, provided on an accelerated schedule tabulations of key items from business

and individual tax returns.

This body of IRS data was utilized to

prepare on an industry basis the first direct

estimates of depreciation for unincorporated nonfarm enterprises since 1947,

the most recent year for which comparable

tabulations had been available. In the

interim, the 1947 benchmark had been

moved forward largely by estimates for

comparable corporate industry groups.

The reduction in nonfarm unincorporated business depreciation has been offset in part by an increase in residential

depreciation. This stemmed from the

upward revisions in the BLS estimates of

the additions and alterations component of

residential construction, as discussed

earlier.

Our revision of corporate depreciation

charges was mostly of a routine nature.

This large component was raised about $}4

billion for 1955, reflecting the use of Statistics of Income data for all corporations.

The 1956 estimate was increased about $1

billion; tabulations from Business Indicators were used to derive nonmanufacturing corporations' depreciation, while depreciation for manufacturing companies was

extrapolated from the somewhat higher

1955 benchmark.

The estimates of capital outlays charged

to current expense have been increased by

moderate amounts for most recent years.

A new 1954 benchmark was prepared for

producers' purchases of durable equipment

customarily charged to current expense by

use of detailed product statistics collected

in the Census of Manufactures. A second

significant change in this series occurred in

the costs of oil and gas well drilling currently expensed, for which the first direct

estimate since 1939 was constructed largely

from data reported in the 1954 Census of

Mineral Industries.

The revisions in capital consumption allowances were wholly statistical. Nonetheless, this is an area of national income research where much new developmental

work is needed, such as to derive more

meaningful measures of the volume of capital used up in production than are afforded

by book depreciation charges.

Capital Consumption

Allowances

The estimates of capital consumption

allowances presented in this report

increased from $10^4 billion in 1946 to

$37/2 billion in 1957. For the years 1946-

51, the figures are from $1 to $l/ 2 billion

less than those previously published. The

revision for the subsequent period was

more moderate—downward by less than

$J4 billion each year.

The revisions for the earlier postwar

period centered very largely in farm depreciation. Several years ago the Department

of Agriculture changed its treatment of

farm capital expenditures and associated

depreciation charges. Whereas we had

recorded the new series in the national

income accounts beginning with 1952, it

was only with the present report that opportunity was afforded to incorporate the corresponding figures for 1946-51. As explained in the October 1955 Farm Income

Situation, the revision of farm depreciation

under discussion entailed the reclassification into current expenses of certain

expenditures on repairs and parts which

previously had been included in capital

outlays.

Modifications have also been made in

the depreciation series for nonfarm unincorporated enterprises. The new figures

for this series are lower—by small amounts

Measurement of Quarterly

and Monthly Movements

In their role as the most comprehensive

available measures of short-term changes

in overall economic activity, the quarterly

and monthly national income statistics have

been subject to a steadily widening interest.

Although based generally on more limited

information, these forerunners of the annual series have demonstrated their ability

to depict current economic trends and to

highlight major factors affecting the course

of general business activity.

In recognition of the urgent need for

up-to-date information on the state of the

Nation's economy, efforts have been made

to speed up the reporting system of national

income statistics. Toward this end, the

Office of Business Economics maintains a

continuing check on the gross national

product, national income, and related

series. In addition to the regularly published quarterly series, preliminary summaries are prepared reflecting the incomplete but latest .available data to provide a

current frame of reference for the monthly

business reviews in the SURVEY OF CURRENT BUSINESS. These preliminary summaries are also regularly furnished to the

Council of Economic Advisers in order to

meet their need for the promptest possible

reporting on current economic developments.

With this same objective in mind, the

schedule of the published series has been

advanced. Since the spring of 1957, the

monthly personal income figures have been

issued 2 weeks after the close of the month

to which they refer—an advance of about

3 weeks over the previous schedule. The

quarterly income and product statistics

(with the exception of corporate profits)

are available about 6 weeks after the end

of the calendar quarter. The delay in corporate profits estimates—which become

available 3x/2 months after the calendar

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quarter to which they refer—reflects the

timing of underlying source materials, and

is something we would very much like to

see eliminated by more prompt reporting.

In a number of important respects, our

quarterly and monthly series differ from

the corresponding annual figures. In general, these series are based on less complete information, and more reliance must

be placed on samples and indirect estimating procedures. The problem of synchronizing the income and product flows is

also greater. Additionally, the necessity of

adjusting the monthly and quarterly data

for seasonal variations interposes special

and sometimes difficult problems. Seasonal

adjustments are themselves in the nature

of estimates, and hence subject to error.

Patterns of seasonality in many of the

individual component series were modified

for the present volume, and this type of

adjustment doubtless will continue to be

improved as our experience in the postwar

period is lengthened. Also, many of the

data limitations in the existing quarterly

and monthly series can be overcome,

and toward this objective we have made

several specific recommendations in the

last section of this chapter. Nonetheless, a

margin of error inevitably will remain in

these series. But when used with proper

caution and judgment, the short-term

data—as the experience to date proves—

are extremely helpful in the measurement

and analysis of current business developments.

It may be noted that, apart from changes

in the basic data and in seasonal adjustments, the quarterly and monthly estimates are affected by revisions in the annual series to which they are controlled.

These series are of a preliminary nature

for the two or three most recent years, and

are subject to revision each July (in the National Income Number of the SURVEY) . As

a consequence, the quarterly and monthly

figures must be adjusted in line with these

regular changes made in the annual estimates. A similar problem arises periodically in connection with the incorporation

of census data which may affect the annual estimates for a more extended period.

As discussed earlier, experience with

these revisions has shown that the overall

annual aggregates are generally changed

by only a small percentage, but that the

changes in some components may be

sizable and thereby affect the quarterly

and monthly distributions. On the whole,

patterns indicated by the quarterly and

monthly figures tend to be corroborated in

the subsequent revisions, particularly if

users of the data have not interpreted the

initial changes too stringently.

UNADJUSTED SERIES

One of the significant changes made in

the new quarterly format in this report

relates to the handling of the unadjusted

series, that is, data without correction for

seasonal variation. In brief, the unadjusted

series have been retained for the gross national product and its components but

discontinued for the income components

of the national accounts with the exception of corporate profits. The discontinuance of the unadjusted income series, an

admittedly regrettable step, was undertaken in the light of our experience with

these data over the past decade.

The original decision to include unadjusted income data in our published reports

was marginal at the time the national accounts were set up in 1947, and reflected

a balance of divergent considerations. On

the one hand, there was the obvious general

advantage of showing matching sets of

unadjusted and seasonally adjusted data,

since unadjusted data are needed for certain purposes and some analysts prefer to

work with the data in this form. It was also

recognized as good statistical practice to

give users of the national income series an

opportunity of viewing the impact of

seasonal adjustments upon the estimates.

On the other hand, the character of the

"unadjusted" income data generally gave

us pause by reason of the fact that they

were not in most cases truly unadjusted.

In the present report, the latter consideration has come to have overriding importance. The data sources have not been

developed to the point required to have a

completely unadjusted income series, nor

is there any early prospect of such development. For example, the Bureau of Labor

Statistics monthly series used to interpolate

the annual estimates of wages and salaries

reflect "regular" earnings in the pay period

nearest the middle of the month, and do

not include such additional elements as

year-end bonuses. In this interpolation

process, we are therefore in effect spreading such "extra" payments over the year in

accordance with the pattern of regular

earnings, so that the resultant unadjusted

series already embodies a partial correction

for seasonality. Similarly, proprietors' income estimates, both farm and nonfarm,

constitute a particularly difficult area in

which actual net income information is

lacking on a monthly (or quarterly) basis.

Indeed, the very concept of net income on

a monthly basis lacks clarity—particularly

when applied to farming. In this situation,

income is estimated indirectly by reference

to seasonally adjusted materials—mainly

business sales or receipts-—and the same

estimates are then used for both the unadjusted and seasonally adjusted series.

In the case of other income components

such as rent and interest, where unadjusted

monthly data are also lacking, the estimates

are derived by means of graphically

smoothed curves fitted to the annual totals.

This procedure implicitly eliminates random fluctuations as well as seasonal variations from the time series. It may be added,

however, that income flows of this type are

characteristically more stable in the shortrun and therefore more amenable to

graphic smoothing than most other types.

While this data situation, in our opinion,

does not appreciably affect the reliability

of the seasonally adjusted monthly and

quarterly income series, it does negate

meaningful comparison between unadjusted and adjusted figures. Our Dresent

decision has also been influenced by periodic inquiries about the unadjusted income

series which clearly indicated that the limitations of these series—quite understandably—were often not recognized.

MAJOR DATA SOURCES

To assist users of our quarterly and

monthly estimates in the difficult task of

gauging their general order of reliability,

the following notes have been prepared.

These summarize the major underlying

data sources, and single out the strong and

weak points of methodology.

In most cases, the data sources utilized

in the preparation of the estimates are mentioned but not described. Reference to

OBE's Business Statistics supplement—issued biennially for odd-numbered years—is

therefore in order. This Supplement includes annotated descriptions of the more

than 2,600 statistical series—together with

back data for the series themselves—which

are carried regularly on a monthly or quarterly basis in the SURVEY OF CURRENT

BUSINESS.

GROSS

NATIONAL PRODUCT

The ensuing discussion of the quarterly

estimates of gross national product is subdivided according to the principal components of this aggregate. The general

approach in these figures parallels that followed annually: Total GNP is built up as

the sum of individually estimated components, with the quarterly interpolations and

extrapolations prepared for a large number

of separate series in order to make best use

of the available basic data.

Personal Consumption

Expenditures

In the main, the data underlying the

quarterly estimates of consumer purchases

of durable and nondurable goods in tables

II-6 and II—7 are essentially the same as

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HOW THE ESTIMATES WERE MADE 9 7

those used to interpolate the annual estimates between the census-based benchmarks for 1947 and 1954, and the special

"secondary" benchmarks established for

1951 and 1956 as described earlier in this

chapter. These data are based primarily

on the relative movements in retail sales,

with principal reliance placed on retail

sales by type of store, prepared by the

Bureau of the Census, and department

store sales by type of department, compiled by the Federal Reserve Board. In

addition, use is also made of unpublished

compilations of State sales tax data, sales

data from trade associations and other

private organizations, quantity and price

information for individual groups of commodities, and Federal retail excise tax collections.

Our discussion of methodology in connection with the annual estimates brought

out the limitations involved in using data

on retail sales by type of store to measure

changes in consumer expenditures for

commodities. However, such limitations—

stemming from the evident shifts in commodity lines among the various types of

stores—might be expected to be lessened

on a quarterly basis.

The principal components of consumer

commodities which rely on source data

other than retail sales are passenger cars,

gasoline and oil, and tobacco. For these,

there are sufficient quantity and price data

to follow the general methodology used in

the annual estimates.

EXPENDITURES FOR SERVICES

For the quarterly estimation of consumer

expenditures for services, there is no body

of source data comparable in relative scope

to the retail sales series used for commodities. Instead, the service estimates are

built up in considerable detail to take advantage of the great variety of source materials bearing on this heterogeneous area.

A partial listing by major groups of some

of the principal data sources is given below. These data are used as indexes, in

effect, for interpolating between the estimated annual totals and extrapolating

them into the current period.

As will be seen, the statistical underpinning of the quarterly estimates of consumer

expenditures for services is not strong. The

relative stability of these expenditures,

however, is a mitigating factor—serving to

lessen the magnitude of error which might

otherwise occur.

HOUSEHOLD OPERATION.—One component of this category—consumer outlays for

domestic services—is the same as the estimates of wages and salaries for the "private households" industry, as described below. In the important household utilities

group, the interpolating series for purchases of electricity is based on electric

power sales to residential consumers multiplied by revenue per kilowatt-hour, from

data compiled by the Edison Electric Institute. Similarly, purchases of gas are estimated from revenue sales of manufactured

and natural gas to residential consumers as

reported by the American Gas Association.

Quarterly movements of outlays for telephone service are based on Federal Communication Commission data on station

revenues of telephone carriers.

HOUSING.—The rental value of nonfarm

dwellings (owner-occupied and tenant-occupied combined) is interpolated and extrapolated on the basis of the estimated

number of occupied nonfarm dwelling

units multiplied by the rent component of

the BLS Consumer Price Index.

TRAN SPORTATION .—Quarterly changes

in purchased local transportation are determined mainly from data on passenger operating revenues of local transit lines compiled by the American Transit Association.

Purchased intercity transportation is based

on passenger revenues as reported for Class

I railways and Class I intercity motor carriers by the Interstate Commerce Commission, and for certificated airlines by the

Civil Aeronautics Board.

The estimates of auto repair services and

of bridge and road tolls, two of the principal service components included in useroperated transportation, are derived indirectly by taking into account net gallons

of gasoline taxed (compiled by the Public

Roads Administration) and fluctuations in

the BLS consumer price index for auto repair services.

Two of the more important service

groups not shown separately in tables II6 and 11-7 are personal services and recreation. The quarterly movements of personal services are based largely on payroll

or employment data relating to major components such as laundering, cleaning and

dyeing, and garment repair. The recreation estimates incorporate the data on expenditures for motion pictures prepared by

Sindlinger & Co., and Internal Revenue

Service data on the collection of Federal

admissions and related taxes.

Gross Private Domestic

Investment

This important component of the gross

national product is estimated separately

for new private construction, producers'

purchases of durable equipment, and the

change in business inventories.

CONSTRUCTION

The quarterly, like annual, estimates of

new private construction rest very largely

on the monthly construction activity series

prepared jointly by the Business and Defense Services Administration of the Department of Commerce and the Bureau of

Labor Statistics of the Department of

Labor. The monthly figures are reported

on a seasonally adjusted as well as an unadjusted basis. Only one relatively small

part of new private construction in the

GNP—petroleum and gas well drilling—is

outside the scope of these regularly published monthly statistics, and therefore requires special estimation.

The methodology underlying the construction estimates was summarized in the

1954 National Income supplement, and the

main features of these estimates have also

been brought out earlier in this chapter

in connection with the discussions of residential construction and fixed nonresidential investment. As is well known, there are

weaknesses in much of the underlying

source material, and these have a particular

effect on the monthly and quarterly series.

Over the considerable range of the construction estimates for which building-permit and contract-awards data are used, the

timing adjustments necessary to convert

these types of information to a work-putin-place concept are imprecise on an annual basis, and doubtless are less adequate

for shorter time periods.

PRODUCERS' DURABLES

The quarterly estimates of producers'

purchases of durable equipment, both

unadjusted and seasonally adjusted, are

derived largely by interpolation and extrapolation of the annual estimates by series

based on the OBE-SEC Plant and Equipment Survey. The survey results are adjusted for comparability, principally by

the exclusion of construction expenditures

(on the basis of the data just referred to),

the addition of expenditures for passenger

cars to the extent they are not covered, and

the inclusion of farm equipment, which is

outside the scope of this survey. The farm

purchases used in this adjustment are

benchmarked upon annual censuses of

shipments of farm machines, equipment,

and tractors, and are extrapolated by

Census Bureau data on sales of retail farm

equipment dealers.

In the present revision, the Plant and

Equipment Survey has been used to estimate the quarterly movement of producers'

durables for the period back to 1947. Prior

to this report, the survey had been used

only for the period starting in 1953. The

quarterly movement in the earlier years

had been based mainly on selected industry

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98 DATA SOURCES AND PROCEDURES

sales data reported in the OBE Industry

Survey, except for the 1950-52 period when

data from the National Production Authority were utilized.

It should be emphasized that this procedure of deriving the quarterly movement

of producers' durable equipment is equivalent to using the plant and equipment data

to guide the movement of total fixed nonresidential investment, that is, producers'

durables plus private nonresidential construction. This is so because, as noted above,

the Commerce-Labor estimates of construction are deducted in computing the

adjusted plant and equipment series which

is used for interpolating and extrapolating

the annual totals of producers' durable

equipment. This deduction thus serves to

offset errors in the quarterly movements

of the private nonresidential construction

component of the GNP.

BUSINESS INVENTORIES

The quarterly nonfarm inventory component of GNP—unadjusted for seasonal

variations—is derived as the sum of the

change in book values and the inventory

valuation adjustment. The available statistical information bearing on these two

items is sufficiently adequate to yield usable

orders of magnitude, but not precise

measurements.

Because of the residual nature of the

calculations, even small percentage errors

in the aggregates from which the changes

are computed can have an appreciable effect on the inventory component of gross

national product. In addition to this consideration, data requirements for accurate

measurement of this component are heightened by reason of its extreme volatility;

changes in business inventories often account for a major portion of quarterly increments in the entire gross national product. This volatility, it may be added, is

also one of the factors which contribute to

the difficulty of determining seasonal patterns in the quarterly changes in business

inventories.

NONFARM BOOK VALUES.—For manufacturing, quarterly movements in the book

value of inventories are based upon

monthly data collected in the OBE-Census

Bureau Industry Survey, which covers a

sample of reporting companies accounting

for more than 45 percent of total manufacturers' sales. The book values of wholesalers' inventories are based on relative

monthly changes obtained from the Census Bureau's sample of merchant wholesalers. Changes in inventory book values in

retail trade are estimated from the Census

sample of retail establishments and the

Federal Reserve Board's monthly data on

department store stocks. Data on nonfarm

inventories outside manufacturing and

trade do not become available in time for

the initial quarterly figures. Estimates for

this group of industries are first made

judgmentally, and then are revised for the

following July National Income Number

on the basis of data obtained largely from

the SEC quarterly reports on "working

capital of United States corporations."

VALUATION ADJUSTMENT.—The source

materials and methods used in calculating

this adjustment on a quarterly basis are

generally the same as those followed annually, although the quarterly procedure is

abridged at a number of points. The annual estimates are described at length in

the 1954 Supplement, which emphasizes

the unusual difficulty of the procedure and

the limited knowledge about the actual

prices and accounting methods reflected in

the reported inventory book values.

CHANGE IN NONFARM INVENTORIES.

Measuring nonfarm inventory changes on

a seasonally corrected basis represented one

of the major tasks in the quarterly revisions undertaken for this report. Adjustments for seasonality, which have an unusually sharp impact on inventory data,

were developed on several different bases.

The series selected for incorporation into

the GNP was derived from separate adjustments of seven component parts: manufacturing, wholesale trade, retail trade—

each separately for durable-goods and nondurable-goods groups—and all other nonfarm industries.

Somewhat different results were obtained depending upon whether the seasonal adjustment was carried out directly

for the nonfarm inventory component of

GNP—as was done for this report—or as

the sum of separate seasonally adjusted

entries for the change in nonfarm book

values and for the inventory valuation adjustment—which was our previous procedure. Differences also appeared when

the seasonal adjustment was done for the

total and in varying degrees of industrial

detail. However, the results yielded by

these variant procedures, which were

tested with the aid of the UNIVAC program at the Bureau of the Census, were

in general only moderately different.

FARM INVENTORIES.—Actual data on

quarterly changes in farm inventories are

incomplete in coverage. Therefore, estimates are obtained simply by fitting a

smooth curve through the annual data.

For the current year, the Agricultural

Marketing Service guides the quarterly

trend of this series by means of a continuing check with Department of Agriculture

specialists on the outlook for major types

of crops and livestock.

Net Exports

Exports and imports are estimated quarterly by the same methodology which is

used on an annual basis. The estimates are

part of OBE's quarterly balance of payments statements published regularly in

the March, June, September, and December issues of the SURVEY OF CURRENT BUSINESS. A delay in the availability of information for some components prevents the

preparation and publication of the export

and import totals one month sooner to synchronize them with the gross national product series, and means that the net export

component of GNP for the latest quarter

must be based on incomplete data.

The postwar statistical revisions of this

component of quarterly GNP were

extremely minor, and reflected for the most

part slight alterations in seasonal adjustments. The substantial difference between

the new series on net exports and the former net foreign investment component is

wholly definitional in character—a point

explained both in connection with the

annual estimates in this chapter and in the

discussion of the new treatment of foreign

transactions in Chapter 5.

Government Purchases

The procedure of estimating Federal

purchases of goods and services quarterly

parallels closely that which is followed in

the annual series.6 However, information

for some of the adjustments required to

convert budgetary data to a national

income basis is either lacking by quarters

or does not become available in time for the

initial estimates.

A principal example of such information

is that necessary to shift the financial data

from a time-of-payment to a time-of-purchase basis. Data for this adjustment—

relating to Government purchases on

credit, advances, and prepayments—are

available with a lag of about 3 months

from special tabulations of the Securities

and Exchange Commission. A comparable

timing problem, which must be resolved in

the current quarterly estimates with only

partial information, arises in connection

with the farm price-support operations of

the Commodity Credit Corporation.

In this report, the changes in the quarterly Federal purchases series due to statistical revisions have been small, and

reflected mainly the introduction of seasonal correction in the national defense

component. The appreciable differences in

6 The Daily Statement of the United States

Treasury and the Monthly Statement of Receipts

and Expenditures of the United States Government

provide most of the basic data.

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HOW THE ESTIMATES WERE MADE 9 9

level between the new and old series are

definitional in nature; as discussed earlier,

the Government's international cash grants

are no longer included with Federal

purchases.

For deriving the quarterly movement of

purchases by State and local governments,

chief reliance is placed upon the estimated

payroll and construction outlays of these

units.7 Such outlays account for about

three-fourths of total State and local government purchases. Quarterly changes in

other purchases are estimated by taking into

account the indicated annual trend and

the fairly systematic relationship of these

purchases to wages and salaries.

Quarterly Constant-Dollar GNP

In the past, the estimates of gross national product available on a quarterly

basis consisted of the current-dollar series

for which the general methodology has just

been described. There existed an important

need for corresponding quarterly estimates

of GNP in constant dollars, in order to obtain a more frequent and up-to-date measure of real volume changes than that

afforded by the annual series.

This need has been met in the present

volume; the new quarterly estimates of

gross national product in constant dollars

are shown for the period since 1947 in

table 1-5 of the Statistical Section. The

figures are presented in Chapter 5, where a

description of them is provided. This covers

briefly the data and procedures used in

the estimation and the particular characteristics and limitations of these new constant-dollar measures that should be taken

into account for their informed use in

analysis.

PERSONAL

INCOME

Personal income is the only major income or product aggregate which is estimated on a monthly basis and, by reason

of its comprehensiveness of scope and the

significant supporting detail provided, it is

a leading current indicator not only of

consumer purchasing power but of general

business activity as well.

The monthly figures as shown on a seasonally adjusted annual rate basis in Table

II—3 are averaged to obtain the corresponding quarterly series contained in Table

II—2. In addition to the personal income

total and its breakdown by type of income

and by industrial source, this latter table

also shows the disposition of personal income among the items of taxes, consumption (described above), and saving.

The bulk of personal tax and nontax payments consists of income taxes withheld

by the Federal Government. Quarterly collections of these taxes as reported by the

Treasury are lagged one quarter to reflect

the approximate timing of actual withholding from individuals' pay.8

 The seasonally adjusted series is derived by interpolating and extrapolating the calendar year

totals of withheld taxes on the basis of

seasonally adjusted payroll data.

For most other types of personal tax and

nontax payments to the Federal and State

and local governments, the general procedure is to use collections for a given calendar year to reflect the seasonally adjusted

annual rate in each quarter of that year.

A similar procedure is used for tax refunds,

which are netted out of total collections

to arrive at the estimates of personal taxes

shown in table 11-2. For current quarters,

the estimates of collections and refunds

for the year as a whole required by this

procedure are modified on the basis of

available data as the year progresses.

Personal saving is derived statistically

as the difference between disposable personal income—personal income less personal tax and nontax payments—and personal consumption expenditures. Because

of the residual nature of this estimate, relatively small changes in these income and

expenditure aggregates can lead to disproportionately large changes in estimated

personal saving. Accordingly, the quarterly

estimates for this item should be used with

caution, and interpreted more as broad

indicators of general tendency than as

precise measures of the quarter-to-quarter

movement.

Attention is now directed to the personal income series itself, which is estimated in substantial detail. The overall

annual rate of personal income for a given

month is derived as the sum of numerous

items shown separately in the published

data, and most of these, in turn, are built

up from an extensive array of finer component series. The twofold purpose behind

this approach is a familiar and traditional

one in national income measurement—

partly to obtain analytically useful breakdowns, but mostly to minimize errors of

estimation by employing a detailed framework to take advantage of all available

information in a systematic fashion.

The following description of sources and

methods touches upon each of the published components of personal income.

7. As noted below, the payroll estimates are based

on BLS data ; the construction figures are reported

in the official Commerce-Labor series.

8. After January 1951, contributions of both employees and employers for old-age and survivors

insurance are included in the reported data ; these

contributions must be estimated and deducted.

WAGE AND SALARY DISBURSEMENTS

First, we shall review the large component of wages and salaries, starting with

the private industry group, following on

with government, and concluding with a

note on seasonals.

PRIVATE.—For individual industry groups

comprising over 85 percent of the total,

monthly changes in private-industry payrolls are estimated from Bureau of Labor

Statistics sample information on employment and (in most cases) average weekly

earnings. Of the remaining 15 percent,

one-half is based on various public agency

sources: Railroad wages and salaries are

extrapolated by payroll data reported by

the Interstate Commerce Commission;

movements in farm wages reflect Department of Agriculture sample data on employment and wage rates; and domestic

service payrolls are based on Census Bureau Monthly Reports on the Labor Force

and the BLS consumer price index for

domestic service. For industries for which

no current information is available—about

7 percent of the total—the monthly estimates are founded on projections of past

trends and on relationships with allied

industries.

Information on payrolls reported under

the State unemployment insurance laws—

available after a 6-month lag—affords a

broad check upon the reasonableness of

the initial quarterly estimates based on the

monthly data.

GOVERNMENT.—The civilian payrolls of

the Federal Government—executive, legislative, and judicial—are reported monthly

to the Civil Service Commission from records of the individual agencies. The data

do not become available in time for our

schedule, but subsequent revisions in the

preliminary estimates (based on employment changes) are usually small. Military

payrolls are extrapolated by the strength

of the Armed Forces, as reported by the

Department of Defense; changes in pay

rates are taken into account.

The monthly change in State and local

government wages and salaries is based

initially on BLS employment estimates

compiled from a sample of government

units. Payroll data from the same source

become available about 6 weeks after the

close of the month to which they pertain.

SEASONALS.—In addition to adjustment

to the revised annual figures, the monthly

wage and salary estimates in this report

reflect (1) a comprehensive reworking of

the seasonal correction factors, and (2)

changes in the BLS interpolating series

from April 1956 to date, resulting from its

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100 DATA SOURCES AND PROCEDURES

periodic alignment with data from Government social insurance programs.

Revised seasonal corrections, which had

been introduced into the 1954-56 data in

July 1957, were, in the present report,

applied to the time series as far back as it

appeared fruitful to reopen the estimates.

In most cases this meant beginning with

1951, although for some industries the revised seasonals were applied to the monthly

series for earlier years.

These new seasonal patterns were developed in considerable detail. For example, separate adjustment factors were

calculated for 19 industries in manufacturing; additionally, for each of these industries separate seasonally adjusted series

on employment, average weekly hours, and

average hourly earnings consistent with the

adjusted payroll series were computed both

for checking and for general analytical purposes. Comprehensive computations were

also made for nonmanufacturing industries, but the underlying data did not permit the preparation of a degree of industrial

detail comparable to that for manufacturing.

PROPRIETORS' INCOME

Direct data on the net income of unincorporated enterprises are lacking on a

monthly basis. It is therefore necessary to

employ indirect measures, tied to the annual estimates, to indicate the general

course of proprietors' income in the

monthly series. The monthly interpolations

are made in considerable industrial detail

in order to provide an appropriate weighting of the various types of relevant information used. For the major industry groups,

entrepreneurial income changes are based

on such indicators as sales (in trade and

manufacturing), payrolls (contract construction and insurance), consumer expenditures for services (services industries),

and mortgage records (real estate).

The object of this procedure is to catch

as much as possible of the general trend in

this type of income, and the month-tomonth movements should not be read too

closely. In itself, the procedure can only

attempt to indicate the course of gross receipts (or of some similar measure of the

volume of business activity), rather than

changes in the net-to-gross relationship.9

However, a careful study is maintained of

such data as are available on profit-ratios

in the corporate segments of the various industries, and this material is taken into account in making the entrepreneurial income estimates.

The monthly estimates of net farm income are based on the Agricultural Mar9. Such changes are reflected in the procedure

only through shifts in the relative importance of the

separate industrial components.

keting Service series on cash receipts from

farm marketings, Government payments to

farmers, and prices paid by farmers for

production items (including interest, taxes,

and wage rates). Given the partial state of

the less-than-annual statistical information

on farmers' inventories of crops and livestock, the monthly inventory change

needed to complete the income estimate is

obtained, as noted above, by a graphic

smoothing of previous annual data which

are extended by a running forecast for the

current year supplied by the AMS.

A continuous check on the monthly

farm income estimates is maintained

against the quarterly series prepared by

the AMS. Any discrepancy between these

monthly and quarterly estimates—which

is usually small—is reconciled in line with

the OBE-AMS agreement to carry identical quarterly figures on the net income of

farm operators.

DIVIDENDS

This component of monthly personal income is estimated from a sample of publicly reported dividends which is maintained by the Office of Business Economics.

The sample includes approximately 5,500

corporations and accounts for three-fourths

of total dividend disbursements.

The unadjusted monthly data are subject to wide seasonal swings, and are also

affected by temporary shifts in payment

dates and other sporadic factors. Therefore, application of seasonal adjustment

factors on a monthly basis has not proved

feasible. This is done quarterly instead, and

seasonally adjusted monthly estimates are

obtained essentially by straight-line interpolation of the adjusted quarterly averages. For the month of December, however, with the aid of information collected

in the dividend sample, separate allowance is made for any unusual variation in

the volume of year-end "extras" and special disbursements.

TRANSFER PAYMENTS

For the most part, transfer payments are

reported directly by various governmental

agencies such as the Social Security Administration, Veterans' Administration,

Bureau of Employment Security, and U. S.

Civil Service Commission. For some components of transfer payments, such as State

and local government pensions and business transfer payments, no monthly information is available. The monthly estimates

for these components are derived from a

smooth curve fitted to the annual data. It

is necessary to use this latter procedure for

about 15 percent of total transfer payments

currently.

PERSONAL CONTRIBUTIONS FOR

SOCIAL INSURANCE

Month-to-month changes in employee

contributions for old age, survivors, and

disability insurance, railroad retirement

insurance, and Federal civilian employee

retirement systems are based on relevant

wage and salary data, with the necessary

account also taken of changes in contribution rates. Contributions to Federal Government life insurance funds and State

sickness compensation funds are based on

receipts reported by the various funds.

The estimates of monthly contributions to

State and local retirement systems represent a smooth curve drawn through annual

totals. Data on the annual contributions of

self-employed persons under the old age,

survivors, and disability insurance program, which are payable in the first quarter

of the year, are obtained from the Social

Security Administration and smoothed

throughout the year to approximate a

seasonal adjustment.

OTHER TYPES OF INCOME

For the other components of personal income—other labor income, personal interest income, and rental income of persons—very little statistical information is

available on a monthly basis. Each of them

is estimated by drawing a smooth curve

through the annual estimates—a procedure

which requires projections for the current

year which are subject to continuing check

and modification. The resulting monthly

series reflect, therefore, broad trends and

cyclical influences, but not random fluctuations.

While the method adopted here is a convention necessitated by lack of data, it is

believed to give satisfactory results. These

components typically exhibit fairly regular

changes on an annual basis, and the general assumption for them of a smooth progression in the monthly movements is not

unreasonable. Taken together, other labor

income, personal interest income, and

rental income account for a little over onetenth of total personal income.

RELATION OF THE

AGGREGATES

With the principal exception of corporate earnings, which are discussed now,

the source data for the components of the

quarterly national income total have

already been covered in the description of

personal income. National income differs

from personal income in that it excludes

transfer payments and net interest paid

bv p-overnment, and it includes both

employee and employer contributions for

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HOW THE ESTIMATES WERE MADE 101

social insurance and the portions of corporate earnings not paid out in dividends.

A minor difference also appears in the

wage and salary components, in that retroactive wage payments are included in the

national income when earned and in personal income when received.

CORPORATE EARNINGS

A substantial amount of work has been

done on the corporate profits part of the

quarterly national income estimates—most

recently in connection with the present volume. The existing source materials have

been utilized assiduously, and constant

efforts have been made to improve the estimating procedures. It is clear, however,

that the further gains to be achieved in this

direction are quite limited.

Instead, the next significant stride

depends on the development of better basic

data. In general, profits data for quarterly

periods are adequate for manufacturing

but not for most of the other industries—a

fact which limits the industry detail which

we can provide (see Figure 36). One of

the prime needs is for an extension to nonmanufacturing industries, notably trade, of

the kind of sample financial survey which

has been provided for the past ten years

for manufacturing.

In the preparation of the quarterly series

on profits before tax, the general procedure

is to use the available basic data to interpolate and extrapolate the estimated annual

totals, separately by industry groups. The

data for the manufacturing industries,

which account for more than half of total

corporate profits, are collected in the Federal Trade Commission and Securities and

Exchange Commission sample survey,

Quarterly Financial Report for United

States Manufacturing Corporations. Quarterly movements of profits in the public

utility and transportation industries are

based on reports of regulatory agencies—

Federal Communications Commission,

Federal Power Commission, and Interstate

Commerce Commission. The series for the

finance industry are derived in large measure from the summaries of net earnings of

the member banks of the Federal Reserve

System. For most other industries, including contract construction, services, wholesale trade and parts of retail trade, quarterly movements are evaluated by reference

to standard sales series or other activity

indicators and to cost-price changes, or to

reports for related industries as indicative

of shifts in profit ratios. The retail trade

estimates also rely for relevant segments

on profit margin data obtained from the

National Automobile Dealers Association

and the National Retail Merchants

Association.

The adjustment for seasonal variation

in this volatile component of the national

accounts is difficult to accomplish. To deal

with the diversity in seasonal patterns that

is encountered, the correction is made in

considerable industrial detail.

The seasonal patterns in corporate profits have been subject to periodic revision

as the postwar experience lengthened. Indeed, one of the major statistical tasks undertaken for this volume was a detailed

review and reworking, where necessary,

of the seasonal corrections in this area, but

notably for the 22 industries comprising

the manufacturing group. It should be

noted that the correction for seasonal variation is made in terms of the corporate

profits share of national income (corporate

profits before tax and inventory valuation

adjustment), which our experience has

shown permits a more meaningful basis

of adjustment than profits before taxes.

The total inventory valuation adjustment, as already set forth, is derived in the

process of estimating the quarterly change

in business inventories in the GNP. The

corporate-noncorporate breakdown of this

total is based upon the corresponding

breakdown of the book value of inventories

as developed in the annual estimates. The

relationship of corporate to total IVA on

a quarterly basis is ascertained by straightline interpolation.

Corporate profits taxes are derived by

multiplying the quarterly estimates of profits before taxes by annual tax ratios. For

current quarters, the ratio of taxes to profits before tax for the latest full year are

used with any necessary adjustments, such

as to allow for new Federal tax legislation.

Other profit components are found as

residuals: profits after tax being equal to

profits before tax less corporate profit

tax liability, and undistributed corporate

profits being equal to profits after tax less

dividends.

CAPITAL CONSUMPTION ALLOWANCES

Among the items of conceptual difference between national income and gross

national product, by far the largest are

capital consumption allowances and indirect business taxes.

Capital consumption allowances are estimated separately for depreciation, accidental damage to fixed capital, and capital

outlays charged to current expense.

Quarterly data on depreciation are

available for the large manufacturing division from the FTC-SEC Quarterly Financial Report. The unadjusted depreciation estimates for other industries, and the

seasonally adjusted series for all industries,

are estimated by fitting a curve to the

annual data. This same procedure is also

followed for the estimates of accidental

damage to fixed capital.

The quarterly figures on capital outlays

charged to current expenses, on the other

hand, are derived in the process of estimating producers' durable equipment.

Essentially, the annual totals for this item

are interpolated and extrapolated quarterly on the basis of producers5

 durables for

those categories of equipment which include important items charged to current

expense.

INDIRECT BUSINESS TAXES

For Federal indirect business tax liabilities, the annual totals are distributed on a

quarterly basis by Treasury data on deposits of excise taxes. The Federal nontax

series represents interpolations of budgetary fiscal year data; preliminary quarterly

estimates for this item are checked on the

basis of collection data which become available with a lag of about one quarter.

For the State and local government component of this item, the major sales taxes

levied by the States are moved by the appropriate components of the retail sales

series. Internal Revenue Service data on

taxpaid withdrawals of tobacco products

are similarly utilized in connection with

State sales taxes on tobacco. Most other

taxes and nontaxes are derived by graphic

smoothing of the annual data.

GAPS IN BASIC

DATA

The foregoing sections have covered the

statistical methodology underlying the annual, quarterly, and monthly income and

product series. Attention was focused on

considerations bearing upon the reliability

of the estimates so as to provide a guide for

the use of the data in economic analysis.

In the course of this discussion, the significant gaps in basic data flow have been

brought out, and occasional references have

been made to the ways in which the flow

of primary information might be improved.

In the concluding section which starts

on the next page, the major data gaps will

be listed and discussed systematically, and

comprehensive recommendations for improvements will be made.

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102 DATA SOURCES AND PROCEDURES

Recommendations for Improvement oi

Primary Source Data

The following discussion of ways to improve the basic data will be selective.

It will include OBE's requirements from

other Government agencies for materials

that would fill major gaps in the existing

statistical information and lead to significant improvements in the national income

and product accounts. Moreover, it will be

confined to fields in which recommendations that are fairly clear-cut and of broad

applicability can be made—as distinguished from those in which solutions are

less obvious or require detailed technical

explanations.

Not included, for instance, is a discussion of our requirements, in connection

with the investment and consumption

components of the GNP, for better information on accounting practices used by

business—in drawing the borderline

between capital outlays and current costs,

in measuring inventories, and in charging

various consumption-type goods to business

expense. Again, data on the float of Government checks and additional information on Government receivables and payables are needed to improve the timing of

the Government purchase series particularly on a quarterly basis.

Regularization and extension of the

Census Bureau surveys of State and local

government finances would be desirable

to provide better benchmark and current

information for the State and local government receipt and expenditure components

of the national accounts. A variety of data

relating to the numbers, rental values, and

expenses of real properties would improve

both the personal consumption and rental

income series. Additional price data are

required for the estimates of inventory

change and of the constant-dollar national

product.

A discussion of these and other requirements was included in a comprehensive presentation we made to the National

Accounts Review Committee; this was

reprinted as appendix E of their report.

Also submitted to the Committee were our

proposals for the improvement of the primary data underlying OBE's regional and

size distribution estimates; we are in general agreement with the recommendations

of the Committee regarding these two

subjects.

The following discussion will deal in

turn with personal consumption expenditures for commodities, producers' durable

equipment, private construction activity,

business inventory change, entrepreneurial

income, and corporate profits.

The first two of these items, it will be

recalled, raised particular problems in the

preparation of the postwar estimates.

The construction activity series, and the

one measuring the change in business

inventories for current periods, are known

to require strengthening. However, except

for inclusion of the reported statistical revisions in the estimates of residential building, and of our reworking of the seasonal

patterns of inventory change, this could

not be accomplished in the present report,

for lack of basic data.

Both the entrepreneurial and the corporate profit series were improved significantly in the revisions just completed. But

more information is needed to strengthen

further the benchmark as well as currentperiod estimates of these two important

income components.

Consumer Commodities

The following recommendations for improving the source data that support the

estimates of consumer commodities will

focus on the commodity-flow method, on

the assumption that this method will continue to be relied upon to derive the bulk of

the commodity estimates.

In view of the complexities of the method

and the data gaps that hamper its execution, it should be indicated why alternative

methods of estimation are ruled out.

Specifically, we must comment on the idea

that retail sales data be made the mainstay

of the consumer commodity estimates. The

suggested procedure would be to eliminate

from the retail sales totals, sales made to

others than consumers—for instance, sales

of building materials—and to add to them

consumer purchases from sellers other than

retailers—such as direct purchases of food

from farmers.

Two major difficulties stand in the way

of the "retail sales" approach. In the first

place, it would be impossible by this method

to obtain estimates by type of commodity.

Retail sales information is available by

type of store only, and this is not an adequate indication of commodity breakdown,

as our recent experience has demonstrated.

Secondly, the retail trade method of estimating the commodity total yields results

that are substantially lower than those obtained by the commodity-flow method.

This has been not only our own experience,

but also that of other national income estimators who have preceded us in this field.

While the causes of this discrepancy have

not finally been determined and need

further study and investigation, it is our

view that estimates benchmarked upon

retail sales data would be too low.

The essence of the commodity-flow

method, it will be remembered, is to select

among producers' shipments of commodities those destined for personal consumption without further processing, and to add

to the commodities so allocated inventory

changes and margins at the wholesale and

retail trade level, and many other items

such as transportation costs and sales taxes,

to arrive ultimately at an estimate of the

total value of commodities when purchased

by consumers.

DISTRIBUTION OF MANUFACTURERS'

SALES

In the accomplishment of the first step—

the selection of commodities destined for

ultimate consumption without further

processing—the distributions of manufacturers' sales by classes of purchasers, available in the manufacturing censuses of 1929,

1935, and 1939, are the single major source

of information. Briefly, sales to "industrial,

commercial, professional, and institutional

users"—the 1939 designation—are taken to

represent nonconsumer use, and only the

remaining sales are subject to the further

steps of the commodity-flow procedure,

such as the addition of trade inventory

changes and margins.

In the absence of the information on the

distribution of manufacturers' sales from

the 1947 and 1954 censuses, the commodity

allocations for those years had to be based

on the 1939 patterns, modified by reference to a variety of data which, on the

whole, were not satisfactory. It may be

noted, specifically, that a thorough and

systematic canvass of expert industry

knowledge was made to plug the gap created by the lack of up-to-date census information, but although this approach was

helpful, it was not an adequate substitute

for the latter.

In the light of this situation, we wish

to recommend firmly that the Census Bureau resume the collection of information

relating to the distribution of manufacturers' sales, and note with satisfaction

that work along these lines in connection

with the 1958 census is planned. We are

aware of the difficulties that led the Census

Bureau to discontinue the collection of the

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HOW THE ESTIMATES WERE MADE 103

data in 1947. We hope, however, that with

advances in the techniques of data collection it will be possible to devise new procedures which will provide reliable sales

distribution data by type of commodity,

with coverage and detail adequate to implement effectively the commodity-flow

method.

TRADE INVENTORIES

In tracing the flow of commodities from

producers to consumers, allowance must

be made for changes in the inventories of

these commodities held by wholesalers and

retailers: Increases in such inventories

must be deducted and decreases added to

producers' shipments to estimate the

amounts actually delivered to consumers.

Inventory data included in the wholesale and retail trade censuses were never

wholly satisfactory for this purpose. They

were available by type of store, rather than

on a commodity basis. The lack of synchronization in the dates of the manufacturing and trade censuses further added

to the difficulty of relating the inventory

data to producers' shipments.

Recently, the position has become even

weaker. The 1954 Census of Wholesale

Trade collected data on beginning and

year-end inventories, but only the latter

were tabulated. In the 1958 census only

year-end data will be collected. No inventory data were tabulated from the 1954

Retail Trade Census, and none will be

collected for 1958.

In the absence of usable data in the basic

censuses, the 1954 benchmark calculations

of wholesale inventory changes relied on

the 1953 Survey of Wholesale Trade. Retail inventory changes were developed from

corporate tax return data. The inventory

information in these sources was less detailed than that in the pre-1954 censuses;

and, inasmuch as comprehensive surveys

of wholesale trade have not been conducted since 1953, the data available for

future commodity-flow calculations are

likely to be still less satisfactory.

The fact that inventory changes in trade

for the year 1954 as a whole were comparatively small was fortunate from the

standpoint of making the benchmark estimates for that year. But one cannot count

upon a repetition of this fortuitous event;

under less favorable circumstances absence

of detailed, reliable information on trade

inventory change may emerge as a significant gap in the commodity-flow method.

Accordingly, the provision of such information—either via the census enumerations or through strengthened sample surveys—should be put on the agenda for data

improvements.

RETAIL TRADE MARGINS

The addition of trade margins is a quantitatively very important step in the commodity-flow method. In 1954, for instance,

these margins constituted about one-half

of the value of producers' shipments of

commodity-flow commodities and about

one-third of the total value of these commodities in the hands of consumers.

Wholesale margins are much smaller

than retail margins, approximately onefifth their size. While the information on

which their estimates rest is not fully satisfactory, we feel that a tolerable estimate

of this item can be made.

With respect to retail trade margins the

situation is different. Since data on retailers' expenses are not collected in the Census of Retail Trade, no information pertinent to the estimate of margins is available

from this source. Instead, as noted earlier,

we have been relying on the results of a

sample of retail trade firms drawn from

income tax returns on the basis of a list prepared from Census Bureau records.

Our work with this sample has raised

doubts as to its adequacy. Frequent and

inexplicable differences between sales as

given on the Census list and in the tax

records were noted; and, among other

problems, difficulties were encountered in

eliminating margins attributable to the

manufacturing activities of trade firms

from the income tax return data. More

generally, the sample was too small for our

requirements.

In view of this situation, it is imperative

that more adequate resources be allocated

to the collection of information on retail

trade margins. The most obvious avenue

is to strengthen the present procedure by

increasing the size of the sample and devoting more care to its selection. Alternatively, the feasibility of developing margin

information in connection with the Annual

Census Surveys of Retail Trade should be

considered.

DATA FOR ANNUAL ESTIMATES

As will be recalled from the earlier

review of methodology, in estimating consumer commodities a major difficulty is

encountered in obtaining a correct breakdown of their composition for nonbenchmark years to which, given the present data

situation, a full-fledged commodity-flow

method cannot be applied.

Prior to the current revisions, the general

procedure was to interpolate and extrapolate the benchmark estimates of the commodity detail obtained via the commodityflow method by sales data of corresponding types of retail stores. But basic changes

in merchandising practices have disqualified the retail interpolation and extrapolation method as means of obtaining reliable

estimates of commodity composition.

To minimize the error stemming from

the use of retail sales data, we have introduced several changes in methodology,

featuring the establishment of "secondary"

benchmarks based upon an abbreviated

version of the commodity-flow method.

While we believe that these changes will

prevent gross errors in commodity composition by reducing the use of retail sales

data, we recognize the weaknesses of the

abbreviated commodity-flow method. Specifically, the Annual Surveys of Manufactures which are used in lieu of the Census

of Manufactures as a source for producers' shipments of manufactured commodities present this information in less

detail than does the basic census. Another

major gap is the absence of current information on trade margins that could be utilized to build up the commodity-flow

estimates.

In order to obtain more reliable information on the annual composition of the

commodity flow, the commodity detail of

the Annual Survey of Manufactures should

be expanded on a selective basis, and

annual information on retail trade margins

usable in conjunction with the commodityflow method should be provided. Next in

order of importance would be an improvement in the information on wholesale and

retail inventories, along the lines indicated

earlier.

Producers' Durable Equipment

The estimates of producers' durable

equipment provide information on the

breakdown of fixed investment by types of

product. They are thus an essential element

in a balanced program for the development

of fixed investment statistics which envisages, in addition, breakdowns of the total

by industry and legal form of the purchaser.

The producers' durable estimates, like

those of consumer commodities, are based

for the most part on the commodity-flowT

method. The recommendations that have

been made for the strengthening of that

method in connection with the consumption series apply here also, but with some

change in emphasis. For instance, inasmuch as producers' durable equipment

does not usually pass through retail channels, the main inventory data that are

required in the present connection relate

to wholesale trade.

GOVERNMENT PURCHASES

Again, the main use that would be made

of manufacturers' sales distributions in the

estimation of producers' durable equipment would be in the determination of purchases of such equipment by government.

These purchases must be deducted from

manufacturers' shipments of equipment,

because the GNP investment series covers

private business only; government acquisitions of investment goods are part of

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government purchases of goods and services. It is accordingly essential from the

standpoint of the producers' durable estimates that the manufacturers' sales distributions show separately sales to government—Federal and State and local.

Government purchases of durable equipment are large and variable; regular information on them is required to develop

annual estimates of producers' durable

equipment utilizing an abbreviated commodity-flow method that builds on the

shipment data contained in the Annual

Surveys of Manufactures.

Governmental records, from which information relative to equipment purchases

is now derived, are ,at present inadequate in

coverage, detail, and timing to provide the

requisite information. Better accommodation of governmental accounting systems—

including those of the Department of Defense, which is the largest purchaser of

durable equipment—to the needs of national income measurement is one avenue

to data improvement that should be

explored.

An alternative approach that should be

considered is to derive the information on

the government take of producers' durables from sellers' rather than from buyers'

records, in conjunction with the Census

surveys of manufactures. In this connection, it may be recalled that data on government purchases obtained during World

War II and the Korean war in surveys run

by the Census Bureau were a key element

in the estimation of private producers'

durable equipment for those periods.

Construction Statistics

Owing to the importance and volatility

of construction activity, the weakness of

existing construction statistics has been a

handicap to the development of a reliable

set of national accounts.

Accurate and meaningful measurement

is difficult in the field of construction,

which is populated by small-business units

that are often hard to identify and do not

maintain accurate business records. In the

absence of adequate resources devoted to

construction statistics, the available estimates have not provided a reliable indication either of the level of construction activity or of its short-term movements.

Significant understatements of the former

have come to light recently, with possible

further upward adjustments in the offing.

Measurement of short-term movement has

been handicapped by the lack of information relating to the actual time phasing of

construction projects constituting the bulk

of private construction, and to a lesser

extent by the difficulty of measuring

seasonal movements.

A comprehensive program for the improvement of construction statistics is now

under active consideration by the Budget

Bureau and the interested Federal agencies. The major specifications—additional

to those of providing more reliable estimates of the level and movement of the

value of construction put in place—which

such a program would have to satisfy from

the standpoint of strengthening the

national accounts are briefly discussed

below.

NATIONAL ACCOUNTS FRAMEWORK

In the first place, this program would

have to be designed to yield consistent

measures of output, in terms of construction put in place, on the one hand, and in

terms of the wages, profits, and other incomes earned in construction, on the other.

At present these two types of measures, to

the extent that they can be put together on

the basis of available information, often

yield inconsistent results, particularly on a

quarterly basis.

Secondly, the construction program

should be framed carefully to meet as far

as possible the definitional issues that arise

in fitting construction into the national

accounts. To mention only a few outstanding ones, careful distinctions must be

drawn between construction, on the one

hand, and durable equipment and the improvement of land on the other. New construction (including major alterations and

repairs) must be distinguished from repair

and maintenance outlays. The treatment

of profit margins must be clear-cut and

meaningful, and the value of new construction must also be defined clearly with

respect to such marginal items as architects'

fees and settlement charges.

It is to be emphasized that, from our

standpoint, any useful survey of construction must be based not only upon a thorough knowledge of the construction industry itself, but also upon an analysis of transactions in the real estate markets in which

the products of the industry are bought and

sold, and of the place of these transactions

in the national accounts. In this manner

the results will be either directly appropriate for inclusion in the national accounts

or, wherever definitional departures appear

unavoidable, it will at least be clear in what

respect they will have to be modified in

order to make them appropriate for

inclusion.

Third, improvements in the present classification of construction activity seem

desirable. This classification is a hybrid

between one based on product type and one

based on purchasing industry. While in the

case of construction the two classifications

coincide much more closely than in the

case of producers' equipment, so that broad

commonsense inferences from one to the

other are usually possible, the present construction classification should be reviewed

so as to yield the best possible information

for product and industrial breakdowns of

private fixed investment.

Inventory Change

Inventory change is a volatile item

which, although small in relation to total

national output, accounts for a large part

of short-term fluctuations in business activity. Accurate measures of the inventory

component of gross national product are

therefore highly desirable from the standpoint of analyzing the ups and downs of

business.

CURRENT DATA FOR TRADE

In the measurement of current inventory

change, trade is the major area that requires strengthening. Needless to say, it is

recognized that progress is made difficult

by the inadequacies of existing business

records and by the problems involved in

sampling this segment of the economy.

For wholesale trade, current sample information is confined to monthly reports

from merchant wholesalers. No information is available on other types of wholesalers—such as agents and brokers, assemblers of farm products, and bulk

petroleum stations, accounting for about

one-quarter of the inventory holdings of

firms engaged in wholesale trade. The first

step to remedy this gap would be to reinstitute the Survey of Wholesale Trade

(taken in 1953) on a regular annual basis.

The coverage of the survey should be comprehensive to include wholesalers other

than merchant wholesalers; it should be

designed to provide information by legal

form, and to take adequate account of

business turnover.

With respect to retail inventories, the

main requirement is the strengthening of

the monthly sample for small retailers. The

current sample of retailers with 10 or fewer

outlets is 1,500 out of a universe population

of about 1.7 million. These small retailers

account for about 80 percent of total retail

inventory holdings.

Provision of legal form information

would be desirable in connection with the

annual survey.

Book values outside manufacturing and

trade, it might be noted, are not now covered adequately on a current basis. Quarterly information relating to corporations

is contained in the Securities and Exchange

Commission's Working Capital of United

States Corporations. But it is not too seDigitized for FRASER 

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HOW THE ESTIMATES WERE MADE 105

curely founded, and becomes available too

late for inclusion in the current quarterly

estimates of gross national product. (Noncorporate business inventories outside

manufacturing and trade are not covered

at all, but are insignificant in magnitude.)

While the deficiency in inventory information outside manufacturing and trade

is not a major one from the standpoint

of the national accounts, it would be desirable to remedy it in view of the intensity

with which inventory data are being

scrutinized by analysts of business fluctuations.

Proprietors' Income

The estimates of nonfarm entrepreneurial income

 10

 for the postwar period have

been strengthened considerably, mainly

because of improvements in the data furnished by the Internal Revenue Service.

First, the extension of the individual

income tax and the upsurge of money

incomes have increased the coverage

of entrepreneurial incomes in IRS taxreturn statistics to such an extent that these

statistics can now serve as the springboard

for estimating the level of these incomes

as well as a comprehensive indicator of

their annual change. Secondly, the IRS

audit control program has provided valuable information for adjusting the totals

reported on income tax forms for the

underreporting of income. Thirdly, the

publication of Business Indicators has cut

down substantially the period for which

we must rely on fragmentary information

to extrapolate our estimates.

The following recommendations are

directed toward further improving the

IRS data and filling the gap in recentperiod information which these data cannot provide.

AUDIT CONTROL STUDIES

The last audit control study which was

tabulated referred to 1949 and was confined to sole proprietors. Audit control

studies should be made at regular intervals,

and extended to cover partnerships. A

shortcoming of the audit control program

from our standpoint is that it is not

designed to disclose all underreporting of

10. This discussion is limited to nonfarm entrepreneurial income. The farm component is discussed

in detail in Major Statistical Series of the U S

Department of Agriculture, Volume 3, Gross and

Net Farm Income, Agricultural Handbook No. 118

U. S. Department of Agriculture, December 1957

income, but only that portion of it which

might be discovered by an audit investigation of a specified intensity. To obtain a

closer approximation of the magnitude of

total underreporting, a subsample of the

audit control sample might be subjected to

further, even more thorough processing.

ANNUAL SAMPLE SURVEYS

To improve the estimates for the most

recent years, an attempt should be made

to obtain data on entrepreneurial incomes

through an annual sample survey. Substantial difficulties in securing reliable information would of course be encountered in

this area in which small, ephemeral units

without adequate accounting records are

numerous. However, no other alternative

seems to be available for strengthening this

important component of the national

income estimates.

Corporate Profits

The estimates of corporate profits have

been strengthened by the key data on nonmanufacturing corporations made available in Business Indicators. Using these

data in conjunction with the SEC-FTC

quarterly sample on manufacturing corporations, we can now extend the Statistics

of Income benchmark to all but the last

1 or 2 years without resort to data sources

that are obviously inferior.

Three major gaps remain to be filled.

First, current quarterly reporting of corporate profits should be extended to nonmanufacturing corporations. Extension to

wholesale and retail trade is most urgent.

In the longer run, however, consideration

should be given to other nonmanufacturing

industries that contribute sizably to the

profits total and are not covered

adequately, such as by reports of regulatory agencies.

Secondly, the current quarterly reports

should be speeded up. The results of the

present quarterly survey of manufacturing corporations are published on a schedule which entails a two-month lag in their

inclusion in the national income and product accounts. In view of the strategic importance of profits in economic fluctuations, this is a serious handicap to current

business analysis.

Thirdly, the audit control program of

the IRS should be extended to corporations. On the basis of the information now

available, we are able to make only an

order-of-magnitude allowance for profits

disclosable by audit.

AVENUES OF

PROGRESS

In a discussion of data gaps and their

remedies, one must both make a balanced

evaluation of the existing situation and set

standards that are reasonable. With respect to the former point, our listing of the

deficiencies of the available source materials should not give rise to the impression that the present data situation is poor.

Quite on the contrary. The primary source

data upon which the United States national income and product estimates rest

compare favorably in quantity and quality

with those available in most, if not all,

other countries, and have undergone major

improvements over the years. It is true that

progress has not been uniform, and we are

especially concerned about the pace of it

during the postwar period.

Just as it would be mistaken to take a

pessimistic view of the present state of the

primary data underlying the national income and product estimates, so would it be

wrong to pin excessive hopes on the results

that might flow from their improvement.

From the review of statistical approach and

methodology, it may be fairly concluded

that no expenditure of resources on the

improvement of the estimates that can

rationally be justified can ever free them

of some margin of error.

However, as has been pointed out, national income estimates are eminently useful in economic analysis even though they

are subject to error, provided that in handling them one is aware of their limitations. While the most obvious avenue of

rendering them more useful is to continue

work on their improvement, an equally

important approach is to help users to employ the statistics effectively, in spite of

their shortcomings.

The Office of Business Economics has

improved the accuracy of national income

statistics in the past by pressing its requirements for primary data, and by processing the existing information by careful

estimating methods. It has promoted the

effective use of national income statistics

through its analyses of the American economy in the national income framework,

and through its published evaluations of

the methodology underlying the estimates.

The present volume continues in this tradition—in addition to extending the factual information on the United States

economy in the statistical tables which

follow.

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Statistical

Section

466759 O~59 8

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STATISTICAL SECTION

LIST OF TABUS

I. GROSS NATIONAL PRODUCT AND NATIONAL INCOME*

Page

1-1. Gross National Product or Expenditure, 1929-

57 (2) 118

1-2. Gross National Product or Expenditure in Constant Dollars, 1929-57 (40) 118

1-3. Gross National Product or Expenditure, Seasonally Adjusted Quarterly Totals at Annual

Rates, 1946-57 (45) 120

1-4. Gross National Product or Expenditure, Quarterly, 1946-57 (44) 122

1-5. Gross National Product or Expenditure, SeasonAlly Adjusted Quarterly Totals at Annual

Rates, in Constant Dollars, 1947-57 ... . 124

1-6. Gross National Product by Major Type of Product, 1929-57 126

1-7. Gross National Product by Major Type of Product, in Constant Dollars, 1929-57 126

1-8. National Income by Type of Income, 1929-57

(1 and 34) ....' . 126

1-9. National Income by Type of Income, Seasonally

Adjusted Quarterly Totals at Annual Rates,

1946-57 (43) 128

1-10. National Income by Industry, 1929-57 (13) . . 130

Pago

I—11. National Income by Industry Division, Seasonally Adjusted Quarterly Totals at Annual

Rates, 1946-57 132

1-12. National Income and Gross National Product

by Legal Form of Organization, 1929-57 (7,

12, and 36) 134

1-13. Gross National Product by Legal Form of

Organization, in Constant Dollars, 1929-57 . 136

1-14. National Income by Corporate and Noncorporate Form of Organization, Seasonally Adjusted Quarterly Totals at Annual Rates,

1946-57 136

1-15. Farm and Nonfarm Business Gross Product, in

Current and Constant Dollars, 1929-57 .. . 138

1-16. Gross National Product Originating in General

Government, Farms, and All Other Industries,

in Current and Constant Dollars, 1909-28 . . 138

1-17. Relation of Gross National Product, National

Income, and Personal Income, 1929-57 (4) . 138

1-18. Relation of Gross National Product, National

Income, and Personal Income, Seasonally

Adjusted Quarterly Totals at Annual Rates,

1946-57 (49) 140

I. PERSONAL INCOME AND OUTLAY*

Page Page

II—1. Personal Income and Its Disposition, 1929-57 II—8. Personal Income, by States and Regions, 1929-

(3 and 36) 144 57 156

II—2. Personal Income and Its Disposition, Seasonally II—9. Per Capita Personal Income, by States and

Adjusted Quarterly Totals at Annual Rates, Regions, 1929-57 158

1946-57 (47) 146 n _ 1 0 Disposabl e Personal Income, Total and Per

11-3. Personal Income, Seasonally Adjusted Monthly Capita, by States and Regions, Selected Years,

Totals at Annual Rates, 1946-57 (52). . . '. 148 1929-55 160

11-4. Personal Consumption Expenditures, by Type of 11-11. Distribution of Consumer Units and Their

Product, 1946-57 (30) 150 Family Personal Income by Income Brackets,

TT , D , ~ _, ,. , . . . Selected Years, 1944-56 161

11-D. Personal Consumption Expenditures by Major

Type, in Constant Dollars, 1946-57 151 11-12. Distributions of Nonfarm Families, Farm Operator Families, and Unattached Individuals and

II-6. Personal Consumption Expenditures by Major Their Family Personal Income, by Income

Type, Seasonally Adjusted Quarterly Totals Brackets 1953-56 .. . 161

at Annual Rates, 1946-57 (51) 152 fT ,„ ^ . ., . '

 r T, ./ T, ' ', T A

11-13. Distribution of Family Personal Income Among

11-7. Personal Consumption Expenditures by Major Quintiles of Consumer Units, Selected Years,

Type, Quarterly, 1946-57 (50) 154 1944-56 161

Figures in parentheses refer to corresponding tables in the 1954 National Income supplement. AQQ

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110 STATISTICAL SECTION

III. GOVERNMENT RECEIPTS AND EXPENDITURES*

Page

III—1. Federal Government Receipts and Expenditures,

1946-57 (8 and 9) 164

111-2. State and Local Government Receipts and Expenditures, 1946-57 (8 and 9) 165

III—3. Government Receipts and Expenditures, Seasonally Adjusted Quarterly Totals at Annual

Rates, 1946-57 166

111-4. Government Receipts and Expenditures, Quarterly, 1946-57 168

III—5. Social Insurance Funds, 1946-57 (10) ... . 170

III—6. Contributions for Social Insurance, 1946-57

(34 and 35) 170

Page

111-7. Government Transfer Payments to Persons,

1946-57 (36) 171

111-8. Government Expenditures by Type of Function,

1952-57 172

111-9. Object Breakdown of Government Purchases of

Goods and Services, Selected Functions,

1952-57 178

111-10. Relation of Federal Government Receipts and

Expenditures in the National Income Accounts to the Budget, 1952-57 178

111-11. Relation of State and Local Government Receipts and Expenditures in the National Income

Accounts to Bureau of Census Data, Fiscal

Years 1952-56 179

IV. FOREIGN TRANSACTIONS

Pag*

IV-1. Foreign Transactions in the National Income

Accounts, 1946-57 182

IV-2. Foreign Transactions in the National Income

Accounts, Seasonally Adjusted Quarterly

Totals at Annual Rates, 1946-57 182

IV-3. Foreign Transactions in the National Income

Accounts, Quarterly, 1946-57 182

Page

IV-4. Relation of Foreign Transactions in the National

Income Accounts to Balance of Payments, 1946-

57 184

IV-5. Balance of Payments on Goods, Services, and

Unilateral Transfers, 1946-57 184

IV-6. United States Government Net Foreign Assistance, 1946-57 185

V. SAVING AND INVESTMENT*

Page

V-l. Sources and Uses of Gross Saving, 1946-57 (5) 188

V-2. Sources and Uses of Gross Saving, Seasonally

Adjusted Quarterly Totals at Annual Rates,

1946-57 188

V-3. New Construction Activity, by Type, 1946-57

(31) 190

V-4. New Construction Activity, by Type, in Constant

Dollars, 1946-57 191

V-5. Private Purchases of Producers' Durable Equipment, 1946-54 (32) 192

V-6. Private Purchases of Producers' Durable Equipment, in Constant Dollars, 1946-54 ... .

V-7. Expenditures on New Plant and Equipment by

U. S. Business, 1946-57

V-8. Net Change in Business Inventories, 1946-57

(33)

192

193

193

Page

V-9. Securities and Exchange Commission Estimates

of Personal Saving and Its Disposition and

Comparison with Office of Business Economics

Estimates of Personal Saving, 1946-57 (6) . . 194

V-10. Sources and Uses of Corporate Funds, 1946-57 . 195

V-ll. Balance of Payments on Capital Account, 1946-

57 195

V—12. Private Purchases of Structures and Equipment

for Manufacturing Establishments, 1929-57 . 196

V-l 3. Depreciation on Privately Owned Structures and

Equipment in Manufacturing Establishments,

1929-57 196

V-l4. Net Formation of Privately Owned Structure and

Equipment Capital in Manufacturing Establishments, 1929-57 196

V-l 5. Real Net Value of Privately Owned Structures,

Equipment, and Inventories in Manufacturing

Establishments, End of Year, 1928-57 . .. . 196

* Figures in parentheses refer to corresponding tables in the 1954 National Income supplement.

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LIST OF TABLES 111

VI. INCOME AND EMPLOYMENT BY INDUSTRY*

Page

VI-1. Compensation of Employees, by Industry, 1946-

57 (14) 200

VI-2. Wages and Salaries, by Industry, 1946-57 (15) . 201

VI-3. Supplements to Wages and Salaries, by Industry

Division, 1946-57 (16) 202

VI—4. Income of Unincorporated Enterprises, by Industry Division, 1946-57 (17) 202

VI-5. Corporate Profits Before Tax, by Industry, 1946-

57(18) 203

VI—6. Federal and State Corporate Profits Tax Liability, by Industry, 1946-57 (19) 204

VI-7. Corporate Profits After Tax, by Industry, 1946—

57(20) 205

VI-8. Net Corporate Dividend Payments, by Industry,

1946-57(21) 206

VI-9. Undistributed Corporate Profits, by Industry,

1946-57(22) 207

VI-10. Corporate Profits (Before Tax) and Inventory

Valuation Adjustment, by Broad Industry

Groups, Seasonally Adjusted Quarterly Totals

at Annual Rates, 1946-57 208

Page

VI—11. Inventory Valuation Adjustment, by Industry

Division, 1946-57(23) 210

VI-12. Net Interest, by Industry Division, 1946-57

(24) 210

VI-13. Number of Full-Time Equivalent Employees, by

Industry, 1946-57(25) 211

VI-14. Average Number of Full-Time and Part-Time

Employees, by Industry, 1946-57 (26) ... . 212

VI-15. Average Annual Earnings per Full-Time Employee, by Industry, 1946-57 (27) 213

VI-16. Number of Persons Engaged in Production, by

Industry, 1946-57 (28) 214

VI-17. Corporate Sales, by Industry, 1946-57 (29) . . 215

VI-18. Corporate Depreciation Charges, by Industry,

1946-57 216

VI-19. Noncorporate Depreciation Charges, by Industry

Division, 1946-57 217

VII. SUPPLEMENTARY TABLES*

VII-l. Gross National Product: Receipts and Expenditures by Major Economic Groups, 1946-57 . .

VII-2. Implicit Price Deflators for Gross National

Product or Expenditure, 1929-57 (41) .. .

VII-3. Implicit Price Deflators for Seasonally Adjusted

Quarterly Gross National Product or Expenditure, 1947-57

VI1-4. Implicit Price Deflators for Gross National

Product by Major Type of Product, 1929-57 .

VI1-5. Gross National Product by Major Type of

Product and Purchaser, 1929 and 1947-57 . .

VI1-6. Gross National Product by Major Type of

Product and Purchaser, in Constant Dollars,

1929 and 1947-57

VI1-7. Implicit Price Deflators for Gross National

Product by Major Type of Product and Purchaser, 1929 and 1947-57

VII-8. Implicit Price Deflators for Gross National

Product by Legal Form of Organization,

1929-57 .

Income and Gross Product Originating in

Farming, 1929-57

VII-9.

* Figures in parentheses refer to corresponding tables in the 1954 National Income supplement.

Page

220

220

222

222

224

224

225

226

226

VII-10

VII-11

VII-12,

VII-l 3.

VII-14.

VII-l 5

VII-16,

VII-17.

VII-18.

VII-19.

Farm Gross Product, in Constant Dollars,

1929-57

Implicit Price Deflators for Farm Gross Product,

1929-57

Revised Farm Series. 1929-45

Implicit Price Deflators for Personal Consumption Expenditures, by Major Type, 1946-57 .

Implicit Price Deflators for New Construction

Activity, 1946-57

Implicit Price Deflators for Producers' Durable

Equipment, 1946-54

Monetary and Imputed Interest, 1946-57 (37) .

Major Items of Personal Income and Personal

Consumption Expenditures in Kind, 1946-57

(39)

Corporate Profits and Inventory Valuation Adjustment, Quarterly, 1946-57 (42)

Relation of Corporate Profits, Taxes, and Dividends to Corresponding Totals as Tabulated

by Internal Revenue Service, 1946-55 (38) . .

Page

226

226

228

228

228

229

229

229

230

230

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STATISTICAL SECTION

TABLE CROSS REFERENCES

1954 NATIONAL INCOME SUPPLEMENT AND PRESENT VOLUME

1954 National Income supplement

TABLE

NO.

U. S. Income

and Output

TABLE

NO.

1 National Income by Distributive Shares, 1929-53 . .

2 Gross National Product or Expenditure, 1929-53 . .

3 Personal Income and Disposition of Income, 1929—

53

Relation of Gross National Product, National Income,

and Personal Income, 1929-53 1-17

Sources and Uses of Gross Saving, 1929-53 ... . V-l

1954 National Income supplement

TABLE

NO.

U. S. Income

and Output

TABLE

NO.

1-8 16 Supplements to Wages and Salaries, by Industry

j _ t Divisions, 1929-53 VI-3

17 Income of Unincorporated Enterprises, by Industry

I I _ 1 Division, 1929-53 VI-4

18 Corporate Income before Federal and State Income

and Excess Profits Taxes, by Industry, 1929-53 . . VI-5

19 Federal and State Corporate Income and Excess

Profits Tax Liability, by Industry, 1929-53 . . .

20 Corporate Income after Federal and State Income

VI-6

and Excess Profits Taxes, by Industry, 1929-53 . . VI-7

6 Securities and Exchange Commission Estimates of

Personal Saving and Comparison with Department

of Commerce Estimates of Personal Saving, 1933—

53 V-9

7 Consolidated Business Income and Product, 1929-

53 part to 1-12

8 Government Receipts, 1929-53 Ill—1 & 2

9 Government Expenditures, 1929-53 Ill—1 & 2

10 Social Insurance Funds, 1929-53 Ill—5

11 Transactions of the Rest of the World with the United

States, 1929-53 Parts to I V-l and V-l 1

12 National Income by Legal Form of Organization,

1929-53 1-12

13 National Income by Industrial Origin, 1929-53 . . .1-10

14 Compensation of Employees, by Industry, 1929-53 . VI-1

15 Wages and Salaries, by Industry, 1929-53 ... . VI-2

112

21 Net Corporate Dividend Payments, by Industry,

1929-53 VI-8

22 Undistributed Corporate Income, by Industry, 1929-

53 VI-9

23 Inventory Valuation Adjustment, by Industry Division, 1929-53 VI-11

24 Net Interest, by Industry Division, 1929-53 ... . VI-12

25 Number of Full-Time Equivalent Employees, by

Industry, 1929-53 VI-13

26 Average Number of Full-Time and Part-Time Employees, by Industry, 1929-53 VI-14

27 Average Annual Earnings per Full-Time Employee,

by Industry, 1929-53 VI-15

28 Number of Persons Engaged in Production, by Industry, 1929-53 VI-16

29 Corporate Sales, by Industry, 1929-53 VI-17

30 Personal Consumption Expenditures, by Type of

Product, 1929-53 H-4

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1954 National Income supplement

TABLE

NO.

U. S. Income

and Output

TABLE

NO.

31

32

New Construction Activity, by Type, 1929-53 . . .

Private Purchases of Producers' Durable Equipment,

1929-52

V-3

V-5

V-8

1-8,

111-6

35 Personal Contributions for Social Insurance, 1929-53. Ill—6

33 Net Change in Business Inventories, 1929-53

34 Supplements to Wages and Salaries, 1929-53

36 Transfer Payments, 1929-53 1-12, II—1, III-7

37 Monetary and Imputed Interest, 1929-53 ... . VII-16

38 Reconciliation of Department of Commerce Estimates

of Corporate Profits with Internal Revenue Service

Tabulations, 1929-51 VII-19

39 Major Items of Personal Income and Personal Consumption Expenditures in Kind, 1929-53 . . . . VII-17

40 Gross National Product or Expenditure in Constant

Dollars, 1929-53 1-2

41 Implicit Price Deflators for Gross National Product

by Major Segments, 1929-53 VI1-2

TABLE CROSS REFERENCES 11 3

U. S. Income

1954 National Income supplement and Output

TABLE TABLE

NO. NO.

42 National Income by Distributive Shares, Quarterly,

1939-53 '. part to VII-18

43 National Income by Distributive Shares, Seasonally

Adjusted Quarterly Totals at Annual Rates,

1939-53 1-9

44 Gross National Product or Expenditure, Quarterly,

1939-53 1-4

45 Gross National Product or Expenditure, Seasonally

Adjusted Quarterly Totals at Annual Rates,

1939-53 1-3

46 Disposition of Personal Income, Quarterly, 1939-53 .

47 Disposition of Personal Income, Seasonally Adjusted Quarterly Totals at Annual Rates, 1939-53 . 11-2

48 Relation of Gross National Product, National

Income, and Personal Income, Quarterly, 1939-

53

49 Relation of Gross National Product, National Income, and Personal Income, Seasonally Adjusted

Quarterly Totals at Annual Rates, 1939-53 . . 1-18

50 Personal Consumption Expenditures by Major Type,

Quarterly, 1939-53 II-7

51 Personal Consumption Expenditures by Major Type,

Seasonally Adjusted Quarterly Totals at Annual

Rates, 1939-53 II-6

52 Personal Income, Seasonally Adjusted Monthly

Totals at Annual Rates, 1929-53 11-3

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STATISTICAL SECTION

SUMMARY DATA FOR 1957

I.—National Income and Product Account, 1957 *

[Billions of dollars]

Item.

1 Compensation of employees.

2 Wages and salaries

3 Disbursements (II-7)

4 Excess of accruals over disbursements (V-ll)

5 Supplements

6 Employer contributions for social insurance

(111-18)

7 Other labor income (11-11)

8 Proprietors' income (11-12)

9 Rental income of persons (11-15)

10 Corporate profits and inventory valuation adjustment

11 Profits before tax

12 Tax liability (111-15)

13 Profits after tax

14 Dividends (11-16)

15 Undistributed (V-12)

16 Inventory valuation adjustment (V-13)_

17 Net interest (11-18)

18 NATIONAL INCOME

19 Business transfer payments (11-21)

20 Indirect business tax and nontax liability (III—16)

21 Current surplus of government enterprises less subsidies

(111-10)

22 Capital consumption allowances (V-14)

23 Statistical discrepancy (V-16)

GROSS NATIONAL PRODUCT _.._

254.6

238. 1

238.1

.0

16. 5

7. 6

8.9

43.0

11.8

41. 9

43.4

21.6

21. 8

12.4

9.4

- 1 . 5

12. 6

364.0

1. 6

37. 6

- 1 . 3

37. 7

. 7

440.3

Item

24 Personal consumption expenditures (II-2).

25 Gross private.domestic investment (V-l)_.

26 Net exports of goods and services.

27 Exports (IV-1)

28 Imports (IV-2)

284. 4

65.3

4.9

26.0

21.0

29 Government purchases of goods and services (III—1) 85. 7

GROSS NATIONAL PRODUCT 440.3

1. Numbers in parentheses indicate accounts and items of counter-entry in the accounts.

114

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SUMMARY DATA FOR 1957 115

II.—Personal Income and Outlay Account, 1957

 1

[Billions of dollars]

Item

1 Personal tax and nontax payments (III—12) 42. 7

2 Personal consumption expenditures (1-24) 284. 4

3 Durable goods 39. 9

4 Nondurable goods 138. 0

5 Services 106. 5

6 Personal saving (V-10) 20. 7

PERSONAL OUTLAY AND SAVING 347.

Item

7 Wage and salary disbursements (1-3) 238. 1

8 Manufacturing,

9 Other private. _

10 Government

11 Other labor income (1-7) _

12 Proprietors' income (1-8).

13

14

Business and professional.

Farm

15 Rental income of persons (1-9) _

16 Dividends (1-14)

17 Personal interest income

18

19

Net interest (1-17)

Net interest paid by government (III—9).

80.6

117. 4

40. 1

8. 9

43. 0

31.4

11.6

11.8

12. 4

18. 8

12. 6

6.2

20 Transfer payments 21. 5

21 Business (1-19)_ ___

22 Government (III-7).

23 Less: Personal contributions for social insurance (III—19)_

PERSONAL INCOME

1. 6

19. 9

6. 6

347. 9

III.—Government Receipts and Expenditures Account, 1957

 1

[Billions of dollars]

Item

1 Purchases of goods and services (1-29) 85. 7

2 Federal 49. 4

3 National defense (less sales) 43. 9

4 Other 5. 5

5 State and local 36.3

6 Transfer payments 21. 3

7 To persons (11-22) 19. 9

8 Foreign (IV-3) 1. 5

9 Net interest paid (11-19) 6. 2

10 Subsidies less current surplus of government enterprises

(1-21) _____ 1.3

11 Surplus or deficit ( —) on income and product account

(V-15) 1. 7

GOVERNMENT EXPENDITURES AND SURPLUS-- 116.2

Item

12 Personal tax and nontax receipts (II—1) 42. 7

13

14

Federal 37. 4

State and local 5. 4

15 Corporate profits tax accruals (1-12) 21.6

16 Indirect business tax and nontax accruals (1-20) 37. 6

17 Contributions for social insurance 14. 2

18

19

Employer (1-6) 7. 6

Personal (11-23) 6. 6

GOVERNMENT RECEIPTS 116.2

1. Numbers in parentheses indicate accounts and items of counter-entry in the accounts.

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116 STATISTICAL SECTION

IV.—Foreign Transactions Account, 1957

 1

[Billions of dollars]

Item

1 Exports of goods and services (1-27) 26. 0

RECEIPTS FROM ABROAD 26.0

Item

2 Imports of goods and services (1-28) 21.0

3 Transfer payments from U. S. Government (III—8) 1. 5

4 Net foreign investment (V-9) 3. 5

PAYMENTS TO ABROAD 26.0

V.—Gross Saving and Investment Account, 1957

 1

[Billions of dollars]

Item

1 Gross private domestic investment (1-25) 65. 3

2 New construction 36. 5

3 Residential nonfarm 17. 0

4 Other 19. 5

5 Producers' durable equipment 27. 9

6 Change in business inventories 1.0

7 Nonfarm . 2

8 Farm . 8

9 Net foreign investment (IV-4) 3. 5

GROSS INVESTMENT 68.

Item

10 Personal saving (II-6) 20. 7

11 Excess of wage accruals over disbursements (1-4) .0

12 Undistributed corporate profits (1-15) 9. 4

13 Corporate inventory valuation adjustment (1-16) — 1. 5

14 Capital consumption allowances (1-22) '___ 37. 7

15 Government surplus or deficit ( —) on income and product

account (III—11)

16 Statistical discrepancy (1-23) _

1. 7

. 7

GROSS SAVING AND STATISTICAL DISCREPANCY 68.

1. Numbers i n parentheses indicate accounts and items of counter-entry in the accounts.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
I. Gross National Product and National Income

PAGE

1-1. Gross National Product or Expenditure, 1929-57 (2) 118

1-2. Gross National Product or Expenditure in Constant Dollars, 1929-57 (40) 118

1-3. Gross National Product or Expenditure, Seasonally Adjusted Quarterly

Totals at Annual Rates, 1946-57 (45) 120

1-4. Gross National Product or Expenditure, Quarterly, 1946-57 (44) 122

1-5. Gross National Product or Expenditure, Seasonally Adjusted Quarterly

Totals at Annual Rates, in Constant Dollars, 1947-57 124

1-6. Gross National Product by Major Type of Product, 1929-57 126

1-7. Gross National Product by Major Type of Product, in Constant Dollars,

1929-57 126

1-8. National Income by Type of Income, 1929-57 (1 and 34) 126

1-9. National Income by Type of Income, Seasonally Adjusted Quarterly Totals

at Annual Rates, 1946-57 (43) 128

1-10. National Income by Industry, 1929-57 (13) 130

1-11. National Income by Industry Division, Seasonally Adjusted Quarterly

Totals at Annual Rates, 1946-57 132

1-12. National Income and Gross National Product by Legal Form of Organization, 1929-57 (7, 12, and 36) 134

1-13. Gross National Product by Legal Form of Organization, in Constant Dollars,

1929-57 136

1-14. National Income by Corporate and Noncorporate Form of Organization,

Seasonally Adjusted Quarterly Totals at Annual Rates, 1946-57 136

1-15. Farm and Nonfarm Business Gross Product, in Current and Constant Dollars,

1929-57 138

1-16. Gross National Product Originating in General Government, Farms, and

All Other Industries, in Current and Constant Dollars, 1909-28 138

1-17. Relation of Gross National Product, National Income, and Personal Income,

1929-57 (4) 138

1-18. Relation of Gross National Product, National Income, and Personal Income,

Seasonally Adjusted Quarterly Totals at Annual Rates, 1946-57 (49) 140

* Figures in parentheses refer to corresponding tables in the 1954 National Income supplement.

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Federal Reserve Bank of St. Louis
118 NATIONAL INCOME AND PRODUCT TABLES

Table I—1.—Gross National Product or Expenditure, 1929—40

[Millions of dollars]

Line

Gross national product

Personal consumption expenditures

Durable goods

Nondurable goods

ServicesGross private domestic investment

New construction.-_

Residential nonfarm

Other

Producers' durable equipment

Change in business inventories ___

Nonfarm

Farm

Net exports of goods and services

Exports

Imports ^ _

Government purchases of goods and services.

Federal .

National defense

Other .—

Less: Government sales

State and local

1929

104,436

78,952

9,212

37,677

32,063

16,231

8,707

3,625

5,082

5,850

1,674

1,836

-162

771

7,034

6,263

8,482

1,311

1,344

7,171

1930

91,105

70,968

7,155

34,010

29,803

10,265

6,183

2,075

4,108

4,465

-383

- 83

-300

690

5,448

4,758

9,182

1,410

1,432

22

7,772

1931

76,271

61,333

5,485

28,946

26,902

5,523

3,968

1,565

2,403

2,839

-1,284

-1,608

324

197

3,641

3,444

9,218

1,537

1,549

12

7,681

1932

58,466

49,306

3,646

22,758

22,902

913

1,876

630

1,246

1,593

- 2 , 556

-2,590

34

169

2,474

2,305

8,078

1,480

1,484

4

6,598

1933

55,964

46,392

3,469

22,251

20,672

1,391

1,431

470

961

1,589

-1,629

-1,370

-259

150

2,402

2,252

8,031

2,018

2,022

4

6,013

1934

64,975

51,894

4,213

26,656

21,025

2,888

1,709

625

1,084

2,304

-1,125

195

-1,320

429

2,975

2,546

9,764

2,991

2,997

6

6,773

1935

72,502

56,289

5,111

29,319

21,859

6,277

2,299

1,010

1,289

3,066

912

376

536

- 54

3,265

3,319

9,990

2,931

2,935

4

7,059

1936

82,743

62,616

6,304

32,836

23,476

8,404

3,281

1,565

1,716

4,169

954

2,066

-1,112

- 93

3,539

3,632

11,816

4,815

4,818

3

7,001

1937

90,780

67,259

6,925

35,185

25,149

11,747

4,403

1,875

2,528

5,095

2,249

1,726

523

62

4,553

4,491

11,712

4,552

4,557

5

7,160

1938

85,227

64,641

5,686

33,985

24,970

6,661

3,960

1,990

1,970

3,644

-943

-1,046

103

1,109

4,336

3,227

12,816

5,280

5,286

6

7,536

1939

91,095

67,578

6,670

35,131

25,777

9,309

4,757

2,680

2,077

4,180

372

316

56

4,432

3,544

13,320

5,157

1,258

3,908

9

8,163

1940

100,618

71,881

7,771

37,215

26,895

13,155

5,452

2,985

2,467

5,531

2,172

1,902

270

1,509

5,355

3,846

14,073

6,170

2,223

3,956

9

7,903

Table 1-2.—Gross National Product or Expenditure in Constant Dollars, 1929-40 l

[Billions of 1954 dollars]

Line

1

2

3

4

5

6

7

Gross national product

Personal consumption expenditures.

Durable goods

Nondurable goods..

Services

Gross private domestic investmentNew construction

Residential nonfarm.

Other..

Producers' durable equipment-.

Change in business inventories..

Nonfarm.

Farm

Net exports of goods and services.

Exports..

Imports..

Government purchases of goods and servicesFederal

State and local.

1929

181.8

128.1

14.9

65.3

48.0

35.0

20.9

8.7

12.2

11.1

3.0

3.2

- . 3

.2

11.1

10.9

18.5

2.9

15.6

1930

164.5

120.3

11.8

62.1

46.4

23.6

15.4

5.1

10.4

8.8

- . 7

- . 3

- . 4

.2

9.9

9.7

20.5

3.4

17.1

1931

153.0

116.6

10.3

61.8

44.6

15.0

10.9

4.2

6.6

5.9

-1. 8

-3. 5

1.7

- . 3

8.4

8.7

21.6

3.7

17.9

1932

130.1

106.0

7.8

56.9

41.4

3.9

6.0

2.1

3.9

3.5

-5. 6

-6. 3

.7

- . 3

6.8

7.1

20.5

3.9

16.6

1933

126.6

103.5

7.5

55.2

40.8

4.0

4.6

1.6

3.0

3.7

-4. 2

-3. 5

- . 7

6.8

7.7

19.9

5.3

14.6

1934

138.5

108.9

8.6

58.8

41.5

7.4

5.1

l.tt

3.2

5.0

-2. 8

.3

-3. 1

- . 6

6.9

7.5

22.8

6.9

15.8

1935

152.9

115.8

10.7

62.1

42.9

16.1

3.1

3.6

6.7

2.6

.9

1.7

-1. 9

7.3

9.2

23.0

6.7

16.3

1936

173.3

127.7

13.1

69.2

45.3

21.0

9.4

4.6

4.9

9.2

2.4

4.3

-2. 0

-2. 2

7.7

9.8

26.9

10.3

16.6

1937

183.5

132.1

13.8

71.6

46.8

27.0

11.3

5.0

6.3

10.5

5.2

3.4

1.8

-1. 6

9.3

10.9

26.0

9.6

16.4

1938

175.1

129.9

11.2

72.8

45.9

15.5

10.1

5.1

5.0

7.3

-1. 8

-2. 3

.4

9.3

8.5

28.8

11.4

17.4

1939

189.3

137.3

13.3

76.7

47.2

21.6

12.2

6.8

5.4

8.5

1.0

.6

.4

.3

9.5

9.2

30.1

11.0

19.1

1940

205.8

144.6

15.3

80.2

49.1

29.0

13.6

7.3

6.3

10.9

4.5

3.8

.6

1.1

10.5

9.4

31.1

13.1

18.0

1. Implicit price deflators are shown in table VII-2.

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Federal Reserve Bank of St. Louis
GROSS NATIONAL PRODUCT AND NATIONAL INCOME 119

Table 1-1.—Gross National Product or Expenditure, 1941-57

[Millions of dollars]

1941

125,822

81,875

9,659

43, 208

29,008

18,072

6,629

3,510

3,119

6,942

4.501

4,049

452

1,124

5,968

4,844

24,751

16,923

13, 794

3,173

44

7,828

1942

159,133

89,748

6,968

51, 324

31, 456

9,875

3,721

1.715

2.006

4,343

1,811

052

1,159

-207

4,937

5,144

59,717

52,027

49,567

2,664

204

7,690

1943

192,513

100,541

6,605

59, 259

34,677

5,600

2,326

885

1,441

4,027

-753

-577

-176

-2,245

4,546

6,791

88,617

81, 223

80,384

1,480

641

7,394

1944

211,393

109,833

6,764

65,368

37, 701

7,130

2,712

815

1,897

5,438

-1.020

-575

-445

-2,099

5,438

7,537

96,529

89,006

88, 615

1,552

1,161

7, 523

1945

213,558

121,699

8,105

73, 222

40,372

10,430

3,833

1,100

2,733

7,654

-1,057

-595

-462

-1,438

7.368

8,806

82,867

74, 796

75,923

1,031

2,158

8,071

1946

210,663

147,109

15, 892

84,802

46,415

28,140

11,028

4,752

6,276

10, 733

6,379

6,350

29

1,916

12, 792

7,876

30,498

20, 582

18,791

4.486

2,695

9.916

1947

234,289

165,409

20, 593

93,382

51.434

31,459

15, 254

7,535

7,719

16, 667

-462

1,298

-1,760

9,039

17,900

8,861

28,382

15,650

11,360

5,417

1,127

12, 732

1948

259,426

178,313

22, 723

98, 737

56, 853

43,087

19,454

10,122

9,332

18, 925

4,708

2,976

1,732

3,490

14,505

11,015

34,536

19,306

11,578

8,231

503

15, 230

1949

258,054

181,158

24, 584

96, 607

59, 967

32,977

18,813

9,642

9,171

17, 236

-3,072

-2,209

-863

3,760

13,958

10, 198

40,159

22, 241

13. 570

8,853

182

17,918

1950

284,599

195,013

30, 351

99. 801

64, 861

49,970

24, 215

14,100

10,115

18, 940

6,815

6,000

815

587

13,098

12,511

39,029

19.348

14, 257

5,202

111

19, 681

1951

328,975

209,805

29, 471

110.135

70,199

56,334

24, 811

12, 529

12, 282

21,290

10,233

9,057

1,176

2,376

17, 857

15,481

60,460

38, 768

33,86-1

5,213

309

21, 692

1952

346,999

219,774

29,099

115,100

75, 575

49,863

25, 532

12, 842

12,690

21, 264

3,067

2,146

921

1,318

17,431

16.113

76,044

52, 854

46, 408

6,717

271

23,190

1953

365,385

232,649

32,875

117, 961

81,813

50,340

27, 588

13,777

13,811

22, 305

447

1,068

-621

-434

16. 600

17, 034

82,830

57,964

49, 289

8.989

314

24, 866

1954

363,112

238,025

32, 398

119,328

86, 299

48,872

29, 722

15,379

14,343

20,789

-1,639

-2,129

490

961

17, 476

16, 515

75,254

47, 548

41.189

6,674

315

27, 706

1955

397,469

256,940

39, 632

124, 762

92, 546

63,843

34,941

18, 705

16, 236

23,119

5. 783

5,486

297

1,094

19.381

18, 287

75,592

45, 282

39,081

6, 559

358

30.310

1956

419,214

269,400

38,369

131,382

99,649

68,180

35, 732

17, 677

18,055

27,002

5,446

5,925

-479

2,796

22,955

20,159

78,838

45, 721

40,330

5,722

331

* 33,117

1957

440,328

284,442

39, 926

137,971

106, 545

65,292

36,483

17,019

19,464

27, 856

953

195

758

4,913

25, 954

21,041

85,681

49,381

44,347

5,456

422

36,300

Line

1

o

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Table 1-2.—Gross National Product or Expenditure in Constant Dollars, 1941-571

[Billions of 1954 dollars]

1941

238.1

154.3

17.6

85.6

51.1

36.7

15.3

7.9

7.4

12.9

8.6

7.6

1.0

-.6

10.6

11.3

47.7

30.7

16.9

1942

266.9

150.8

10.9

87.3

52.6

18.8

7.8

3.6

4.2

7.4

3.6

1.6

2.0

-2.9

7.6

10.5

100.1

84.7

15.4

1943

296.7

154.6

9.4

90.0

55.2

10.7

4.4

1.7

2.7

6.9

-.6

- . 5

.0

-6.6

6.7

13.2

137.9

123. 9

14.0

1944

317.9

160.2

8.6

94.0

57.6

12.3

4.8

1.4

3.4

9.2

-1.7

-1.1

- .6

-6.7

7.4

14.1

152.2

138.4

13.8

1945

314.0

171.4

9.8

101.4

60.2

17.0

6.6

1.8

4.8

12.7

-2.4

-1.6

- . 8

-5.6

9.8

15.3

131.2

117.1

14.0

1946

282.5

192.3

19.4

107.6

65.3

42.4

17.3

7.3

10.0

16.1

9.0

9.1

- . 1

3.8

15.8

12.0

43.9

28.2

15.8

1947

282.3

195.6

23.3

105.3

67.0

41.5

19.9

9.6

10.3

21.7

- .1

1.4

-1.6

8.0

19.2

11.1

37.2

19.4

17.8

1948

293.1

199.3

24.6

105.1

69.6

49.8

22.7

11.4

11.2

22.8

4.4

3.0

1.4

2.0

14.7

12.8

42.1

22.9

19.2

1949

292.7

204.3

26.3

106.3

71.7

38.5

22.3

11.2

11.1

19.8

-3.6

-2.6

-1.0

2.6

15.1

12.4

47.2

25.3

21.9

1950

318.1

216.8

32.1

109.2

75.5

55.9

27.4

15.5

11.9

21.3

7.2

6.5

.7

.2

14.5

14.2

45.1

21.6

23.5

1951

341.8

218.5

29.2

111.2

78.2

57.7

26.0

12.9

13.2

22.0

9.7

9.0

2.2

17.3

15.1

63.3

39.3

24.1

1952

353.5

224.2

28.5

115.0

80.8

50.4

26.0

12.8

13.2

21.8

2.6

2.2

.4

1.2

16.9

15.7

77.7

53.3

24.5

1953

369.0

235.1

33.1

118.3

83.7

50.6

27.6

13.6

14.0

22.5

.5

1. 1

- . 7

-.9

16.4

17.3

84.3

58.8

25.5

1954

363.1

238.0

32.4

119.3

86.3

48.9

29.7

15.4

14.3

20.8

-1.6

-2.1

.5

1.0

17.5

16.5

75.3

47.5

27.7

1955

392.7

256.0

39.6

125. 4

91.0

62.5

33.9

18.2

15.7

22.5

6.1

5.4

.7

.9

19.2

18.3

73.2

43.5

29.7

1956

402.2

263.7

37.9

130.2

95.6

63.1

32.8

16.4

16.4

24.8

5.6

5.5

.0

2.4

22.2

19.8

72.9

42.0

30.9

1957

407.0

270.3

38.1

132.7

99.4

57.8

32.3

15.5

16.9

24.1

1.4

.1

1.4

3.9

24.3

20.5

75.0

42.7

32.3

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
120 NATIONAL INCOME AND PRODUCT TABLES

Table 1-3.—Gross National Product or Expenditure, Seasonally Adjusted Quarterly Totals at Annual Rates, 1946-47

[Billions of dollars]

Line

Gross national product

Personal consumption expenditures

Durable goods

Nondurable good s

Services

Gross private domestic investment

New construction

Residential nonfarm

Other

Producers' durable equipment

Change in business inventories—total

Nonfarm only

Net exports of goods and services

Exports

Imports

Government purchases of goods and services

Federal

National defense

Other

Less: Government sales

State and local

I

198.0

137.3

12.7

80.8

43.9

22.1

8.5

3.5

4.9

7.7

5.9

6.0

3.8

11.1

7.3

34.9

25.9

24 5

3 9

2 5

206.3

143.0

14.9

82.6

45.5

29.0

10.8

4.6

6.2

9.4

8.8

8.7

4.5

12.4

7.9

29.7

20.2

19.4

4.4

3.6

9.5

I II

217.1

152.7

17.4

87.7

47.5

29.6

12.2

5.3

6.9

11.4

6.1

5.9

6.5

14.4

7.9

28.3

18.1

16.3

4.9

3.1

10.2

IV

221.2

155.4

18.6

88.1

48.7

31.8

12.6

5.6

7.0

14.5

4.7

4.8

4.9

13.2

8.3

29.1

18.1

15.0

4.8

1.7

11.0

Year

210.7

147.1

15.9

84.8

46.4

28.1

11.0

4.8

6.3

10.7

6.4

6.4

4.9

12.8

7.9

30.5

20.6

18.8

4.5

2.7

1947

226.0

159.4

19.1

90.7

49.6

29.8

13.3

6.2

7.0

16.1

.4

1.5

9.0

1^4

8.5

27.8

15.9

13.0

4.3

1.4

11.9

230.0

163.9

20.3

93.0

50.6

29.2

13.8

6.3

7.4

16.4

-1. 0

1.5

9.4

18.4

9.0

27.5

15.1

10.3

6.1

1.3

12.4

I II

235.6

167.2

20.8

94.2

52.2

29.6

15.6

7.6

8.0

16.7

-2. 7

- . 3

9.9

18.5

8.6

28.8

15.9

10.7

6.1

.9

12.9

IV

245.1

171.2

22.1

95.7

53.4

36.7

17.9

9.6

8.3

17.4

1.4

2.4

7.9

17.2

9.3

29.4

15.7

11.5

5.1

.9

13.7

Year

234.3

165.4

20.6

93.4

51.4

31.5

15.3

7.5

7.7

16.7

- . 5

1.5

9.0

17.9

8.9

28.4

15.6

11.4

5.4

1.1

12.7

Table 1-3.—Gross National Product or Expenditure, Seasonally Adjusted Quarterly Totals at Annual Rates, 1952-53

[Billions of dollars]

Line

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—total

Nonfarm only

Net exports of goods and services

Exports

Imports

Government purchases of goods and services

Federal

National defense

Other

Less: Government sales

State and local

1952

341

214

27.

113.

73.

52,

25.

12,

12.

21

5.

4

3,

19.

15.

71

48.

43.

5.

22,

0

6

7

3

6

.2

2

4

8

9

1

0

.1

0

9

.1

5

0

8

3

5

II

341.3

217.7

29.1

113.9

74.7

45.6

25.4

12.7

12.7

22.4

-2. 2

-3. 3

2.8

18.3

15.5

75.2

52.1

46.2

6.2

.3

23.1

III

347.0

219.6

27.5

115.9

76.2

49.1

25.4

12.8

12.6

19.4

4.3

3.4

. 1

16.0

16.0

78.2

55.0

47.0

8.1

.2

23.2

IV

358.6

227.2

32.1

117.2

77.9

52.6

26.1

13.4

12.7

21.2

5.3

4.7

- . 7

16.4

17.1

79.5

55.8

49.3

6.7

.2

23.7

Year

347.0

219.8

29.1

115.1

75.6

49.9

25.5

12.8

12.7

21.3

3. 1

2.1

1.3

17.4

16.1

76.0

52.9

46.4

6.7

.3

23.2

1953

364.5

230.9

33.2

118.1

79.6

52.0

26.9

13.7

13.2

22.5

2.5

3.0

- . 3

16.5

16.7

81.8

57.4

49.8

8.0

.4

24.4

368.8

233.3

33.4

118.6

81.2

52.9

27.8

14.0

13.8

22.0

3. 1

4.0

- . 7

16.5

17.2

83.3

58.9

50.5

8.7

.3

24.3

III

367.1

234.1

33.6

117.8

82.8

51.1

27.7

13.8

14.0

22.6

.7

1.5

16.7

17.5

82.7

57.7

49.3

8.7

.3

IV

361.0

232.3

31.2

117.4

83.7

45.2

27.9

13.7

14.2

21.9

-4. 6

-4. 3

.0

16.7

16.7

83.5

57.8

47.6

10.5

.3

Year

365.4

232.6

32.9

118.0

81.8

50.3

27.6

13.8

13.8

22.3

.4

1.1

- . 4

16.6

17.0

82.8

58.0

49.3

9.0

.3

24.9

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
GROSS NATIONAL PRODUCT AND NATIONAL INCOME 121

Table 1-3.—Gross National Product or Expenditure, Seasonally Adjusted Quarterly Totals at Annual Rates, 1948-51

[Billions of dollars]

1948

i

249.5

174.7

21.6

98.1

55.0

39.9

18.4

9.7

8.6

18.2

3.3

2.3

4.8

15.5

10.7

30.1

15.9

11.2

5.8

1.1

14.2

II

257.7

177.5

22.6

98.7

56. 2

43.2

19.8

10.5

9.2

18.3

5.1

2.9

3.3

14.2

10.9

33.7

19.0

11.3

8.1

.4

14.7

III

264.0

180.2

23.6

99.0

57.6

45.2

20.1

10.4

9.7

19.0

6. 1

3.9

2.8

14.2

11.5

35.8

20.3

11.8

8.8

.3

15.6

IV

265.9

180.8

23.1

99.2

58.5

43,9

19.4

9.7

9.7

20.1

4.3

2.8

3.0

14.1

11.0

38.2

22.1

12.1

10.2

.2

16.1

Year

259.4

178.3

22.7

98.7

56.9

43.1

19.5

10.1

9.3

18.9

4.7

3.0

3.5

14.5

11.0

34.5

19.3

11.6

8.2

.5

15.2

1949

I

259.8

179.0

22.4

97.8

58.8

36.8

18.5

9.0

9.4

18.3

.0

.6

4.6

15.2

10.6

39.5

22.5

13.5

9.3

.3

17.0

II

256.4

181.1

24.5

97.1

59.5

30.8

18.2

8.9

9.3

17.9

-5. 3

-4. 1

4.6

15.0

10.3

39.9

22.3

13.7

8.9

.2

17.6

I II

258.8

180.5

25.1

95.3

60.1

33.7

18.6

9.6

9.0

16.8

-1. 7

- . 6

3.7

13.6

9.9

40.9

22.6

14.1

8.6

. 1

18.3

IV

257.0

184.0

26.3

96.3

61.5

30.6

19.9

10.9

9.0

16.0

-5. 3

-4. 7

2.1

12.1

10.0

40.3

21.6

13.0

8.7

. 1

18.7

Year

258.1

181.2

24.6

96.6

60.0

33.0

18.8

9.6

9.2

17.2

-3. 1

-2. 2

3.8

14.0

10.2

40.2

22.2

13.6

8.9

.2

17.9

I

265.8

185.7

26.8

96.2

62.6

39.8

21.6

12.2

9.4

15.7

2.5

2.2

2.0

12.5

10.5

38.4

19.1

12.6

6.6

. 1

19.3

II

274.4

189.9

27.9

97.7

64.3

46.9

23.6

13.8

9.8

18.4

4.9

4.2

1.1

12.4

11.3

36.5

17.2

12.0

5.2

. 1

19.3

1950

III

293.2

204.4

35.5

103.3

65.7

51.1

25.6

15.4

10.3

20.6

4.9

3.8

- . 6

13.4

14.0

38.2

18.4

14. 1

4.4

. 1

19.8

IV

304.3

200.1

31.2

102.0

66.9

61.4

25.3

14.4

10.9

21.1

15.0

13.8

- . 2

14.2

14.4

43.0

22.7

18.3

4.5

.2

20.3

Year

284.6

195.0

30.4

99.8

64.9

50.0

24.2

14,1

10.1

18.9

6.8

6.0

.6

13.1

12.5

39.0

19.3

14.3

5.2

.1

19.7

I

317.8

211.5

33.0

110.2

68.3

56.9

25.7

14.1

11.6

20.7

10.5

9.3

- . 2

15.9

16.1

49.5

28.7

24.3

4.5

.2

20.9

1951

II

326.4

205.5

28.0

108.1

69.4

61.6

25.0

12.5

12.5

21.3

15.2

14.0

1.7

17.7

16.0

57.7

36. 1

31.2

5. 1

.2

21.6

I II

333.8

208.8

28.5

109.5

70.8

56,3

24.5

11.8

12.7

21.6

10.2

9.1

3.9

18.9

15.0

64.9

42.9

38.1

5.2

.4

21.9

IV

338.1

213.4

28.4

112.7

72.3

51.0

24.5

12.1

12.4

21.5

4.9

3.8

4.2

18.9

14.8

69.5

47.4

41.8

6.0

.4

22.1

Year

329.0

209.8

29.5

110.1

70.2

56.3

24.8

12.5

12.3

21.3

10.2

9.1

2.4

17.9

15.5

60.5

38.8

33.9

5.2

.3

21.7

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

Table I—3.—Gross National Product or Expenditure, Seasonally Adjusted Quarterly Totals at Annual Rates, 1954—57

[Billions of dollars]

1954

360.0

233.7

31.2

117.9

84.6

46.6

27.8

13.7

14.1

2L4

-2. 6

-2. 8

.3

16.0

15.7

79.4

52. 9

44.8

S. 4

.3

26.5

358.9

236. 5

32.2

118.8

85. 5

47.2

28.9

14.7

14.2

20.9

-2. 7

-3. 2

17.9

17.1

74.4

47.1

41.5

5.9

.3

27.3

I II

362.0

238.7

32.3

119.6

48.8

30.2

15. S

14.4

20.7

-2. 1

-2. 8

.4

17.3

16.8

74.1

45. 9

40.0

6.2

.3

28.2

IV

370.8

243.2

33.9

121.0

88.3

52.3

31.6

17.0

14.6

19.9

.8

.2

2.3

18.7

16.5

73.0

44.4

38.4

6.2

.3

28.7

Year

363.1

238.0

32.4

119.3

86. 3

48.9

29.7

15.4

14.3

20.8

-1. 6

-2. 1

1.0

17.5

16.5

75.3

47.5

41.2

6.7

.3

27.7

1955

384.3

249.4

38.2

121.2

90.0

58.8

33.9

18.5

15.4

20.5

4.4

3.8

1.5

18.7

17.2

74.6

45.1

39.2

6.2

.3

29.5

393.0

254.3

39.1

123. 7

91.6

63.1

34.9

18.9

16.0

22.1

6.1

5.7

.7

18.6

17.9

74.9

44.7

38.8

6.2

.4

30.2

III

403.4

260.9

41.4

126.1

93.4

65.4

35.4

18.9

16.5

24.4

5.7

5.5

1.3

20.0

18.7

75.8

45.3

39.2

6.5

.4

30.5

IV

408.9

263.3

39.8

128.1

95.3

67.6

35. 4

18.4

17.0

25 4

6.7

6. 7

.9

20.3

19.4

77.1

46.1

39.1

7.4

.4

31.0

Year

397.5

256.9

39.6

124.8

92.5

63.8

34.9

18.7

16. 2

23.1

5.8

5.5

1.1

10.4

18.3

75.6

45. 3

39.1

6.6

.4

30.3

I

410.8

265.2

38.7

129.6

96.9

68.0

35.2

17.8

17.4

25. 9

6.9

7.4

.8

20.9

20. 1

76.8

44.8

39.1

6.1

.3

32.0

II

414.9

267.2

37.8

130. 9

98.6

67.7

3*. 8

17.7

18.1

26.6

5.4

6.2

2.8

22. 5

19.8

77.2

44. 5

39.1

5.7

.4

32.7

1956

III IV Year

420.5

269.7

37.5

131.6

100.6

68.1

35.8

17.6

18.3

27.3

4.9

5.3

3.2

23.6

20.4

79.5

46.1

41.0

5.4

.3

33.4

430.5

275.4

39.5

133.4

-102.5

68.8

36.2

17.7

18.4

28.2

4.4

4.6

4.4

24.8

20.4

81.8

47.5

42.1

5.7

.3

419.2

269.4

38.4

131.4

99.6

68.2

35.7

17.7

18.1

27.0

5.4

5.9

2.8

23.0

20.2

78.8

45.7

40.3

5.7

.3

33.1

1957

430.3

270.8

40.2

135. 5

104.1

65.9

36.1

17.2

18.9

28.7

1. 1

.6

5.6

26.4

20.8

85.0

49.1

43.7

5.8

.4

35.9

II

441.2

282.5

39.5

137.1

105. 9

67.0

36.1

16. 5

19.6

28.1

2.9

2.0

6.0

26.6

20.6

85.7

49.7

44.9

5.1

.3

36.0

I II

445. 6

288.3

40.4

140.5

107.4

66.7

36.6

16.9

19.7

28.0

2.2

1.3

4.8

26.0

21.2

85.8

49.7

44.9

5. 2

. 5

36.1

IV

438.9

287.2

39.6

138.8

108.7

61.5

37.1

17.6

19.6

26.7

-2. 3

-3. 1

3.3

24.9

21.6

86.9

49.1

43.9

5.7

.5

37.8

Year

410.3

284.4

39.9

138.0

106.5

65. 3

36.5

17.0

19.5

27.9

1.0

.2

4.9

26.0

21.0

85.7

49.4

44.3

5.5

.4

36.3

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
122 NATIONAL INCOME AND PRODUCT TABLES

Table 1-4.—Gross National Product or Expenditure, Quarterly, 1946-47

[Billions of dollars]

Line

Gross national product

Personal consumption expendituresDurable goods

Nondurable goods.

Services ..

Gross private domestic investment.

New construction

Residential nonfarm..

Other

Producers' durable equipment

Change in business inventories—total.

Nonfarm only

Net exports of goods and services

Exports..

Imports..

Government purchases of goods and services.

Federal

National defense

Other

Less: Government sales_

State and local.

48.0

32.3

2.7

18. 6

11.0

6.1

1.8

l!l

2.0

2.8

2.3

.8

2.7

1.9

8.7

6.1

1.0

.6

II

50.5

35.5

3.7

20.3

11.5

6.2

2.7

1.1

1.5

2.4

1.1

1.1

1.4

3.3

1.9

7.5

5.1

4.8

1.1

.9

2.4

1946

III

54.0

37.1

4.1

21.2

11.8

8.6

3.4

1.5

1.9

2.8

2.4

2.4

1.4

3.4

2.0

7.0

4.5

4.1

1.2

IV

58.2

42.3

5.4

24.7

12.1

7.2

3.2

1.4

1.8

3.5

.5

.6

1.3

3.5

2.1

7.3

4.5

3.7

1.2

.4

2.8

Year

210.7

147.1

15.9

84.8

46.4

28.1

11.0

4.8

6.3

10.7

6.4

6.4

4.9

12.8

7.9

30.5

20.6

18.8

4.5

2.7

9.9

54.6

37.6

4.2

20.9

12.4

8.0

2.8

1.2

1.6

4.0

1.2

1.4

2.2

4.3

2.1

6.9

4.0

3.3

1.1

.3

2.8

56.5

40.6

5.1

22.7

12.8

6.4

3.5

1.6

1.8

4.3

-1. 3

- . 7

2.6

4.8

2.2

6.9

3.8

2.6

1.5

.3

3.1

1947

III

58.0

40.7

4.9

22.8

13.0

8.1

4.4

2.2

2.2

4.0

- . 3

.3

2.2

4.3

2.1

7.0

3.8

2.5

1.5

.2

3.2

IV

65.2

46.6

6.4

26.9

13.3

8.9

4.6

2.5

2.1

4.4

.2

2.1

4.5

2.4

7.6

4.0

2.9

1.3

.2

3.6

Year

234.3

165.4

20.6

93.4

51.4

31.5

15.3

7.5

7.7

16.7

- . 5

1.3

9.0

17.9

8.9

28.4

15.7

11.4

5.4

1.1

12.7

Table 1-4.—Gross National Product or Expenditure, Quarterly, 1952-53

[Billions of dollars]

1952

I

82.9

50.7

6.1

26. 1

18.6

13.8

5. i

2.5

2.9

5.2

3.3

3.0

.9

4.8

4.0

17.4

12.1

10.7

1.5

.1

5.3

II

84.5

54.1

7.4

27.9

18.8

10.7

6.4

3.3

3.2

5.9

-1. 6

-1. 9

. 6

4.5

3.9

19.0

13.1

11.7

1.5

.1

5.8

I II

85.6

53.4

6.6

27.9

18.8

12.7

7.0

3.6

3.4

4.5

1.1

.9

- . 2

3.8

4.0

19.7

13.8

11.8

2.0

.1

5.9

I V

94.1

61.5

9.0

33.1

19.4

12.6

6.7

3.5

3.2

5.7

. 3

. 1

4.2

4.2

19.9

13.8

12.2

1.7

.1

6.1

Year

347.0

219.8

29.1

115.1

75.6

49.9

25.5

12.8

12.7

21.3

3.1

2.1

1.3

17.4

16.1

76.0

52.9

46.4

6.7

.3

23.2

1953

I

88.1

54.7

7.4

27.3

20.0

13.5

5.7

2.8

3.0

5.1

2.6

2.7

—.1

4.0

4.1

20.0

14.3

12.4

2.0

.1

5.7

II

91.9

58.1

8.6

29.0

20.5

12.9

7.0

3.6

3.4

5.9

- . 1

.1

- . 1

4.3

4.4

21.0

14.9

12.7

2.2

.1

6.2

III

91.0

57.2

8.2

28.5

20.5

13.3

7.7

3.9

3.8

5.4

. 2

.4

- . 4

4.0

4.4

20.9

14.5

12.4

2.2

.1

6.4

IV

94.4

62.6

8.8

33.1

20.8

10.7

7.1

3.5

3.6

5.8

-2. 3

-2. 2

. 2

4.3

4.1

21.0

14.4

11.8

2.6

.1

6.6

Year

365.4

232.6

32.9

118.0

81.8

50.3

27.6

13.8

13.8

22.3

.4

1.1

- . 4

16.6

17.0

82.8

58.0

49.3

9.0

.3

24.9

Line

Gross national product

Personal consumption expenditures

Durable goods

N ondurable goods

Services

Gross private domestic investment

New construction

Residential nonfarm

Other

Producers' durable equipment

Change in business inventories—total

Nonfarm only

Net exports of goods and services

Exports

Imports

Government purchases of goods and services.

Federal

National defense

Other

Less: Government sales

State and local

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
GROSS NATIONAL PRODUCT AND NATIONAL INCOME 123

Table I—4.—Gross National Product or Expenditure, Quarterly, 1948—51

[Billions of dollars]

1948

I

60.3

41.4

4.8

22.8

13.8

10.3

3.8

1.9

1.9

4.2

2 3

2.1

1.2

3.8

2.7

7.4

4.0

2.9

1.5

.3

3.4

II

63.1

43.9

5.7

24.0

14.2

9.7

5.0

2.7

2.3

4.7

- . 5

1.0

3.7

2.7

8.6

4.8

2.8

2.0

1

3.8

I II

65.4

44.0

5.7

24.0

14.3

12.1

5.6

3.0

2.6

4.6

1 9

1.4

. 5

3.3

2.8

8.8

4.9

2.8

2.2

1

3.9

IV

70.6

49.1

6.6

27.9

14.6

10.9

5.0

2.5

2.5

5.5

4

. 9

3.7

2.8

9.7

5.6

3.1

2.6

.1

4.1

Year

259.4

178.3

22.7

98.7

56.9

43.1

19.5

10.1

9.3

18.9

4 7

3.0

3.5

14.5

11.0

34.5

19.3

11.6

8.2

.5

15.2

I

62.5

42.0

4.9

22.4

14.8

9.7

3.9

1.8

2.1

4.2

1.6

1.7

1.1

3.7

2.6

9.7

5.7

3.4

2.3

.1

4.0

II

63.1

45.2

6.2

24.0

15.0

6.5

4.6

2.3

2.3

4.6

—2.6

-2. 3

1.3

3.9

2.5

10.1

5.6

3.4

2.2

4.5

1949

III

64.3

44.2

6.2

23.1

14.9

9.3

5.2

2.7

2.5

4.1

. 3

. 7

3.2

2.5

10.1

5.5

3.4

2.2

4.6

IV

68.1

49.8

7.4

27.1

15.3

7.4

5.1

2.8

2.3

4.4

-2. 1

-1. 9

. 6

3.2

2.5

10.3

5.5

3.3

2.2

4.8

Year

258.1

181.2

24.6

96.6

60.0

33.0

18.8

9.6

9.2

17.2

-3. 1

-2. 2

3 8

14.0

10.2

40.2

22.2

13.6

8.9

.2

17.9

1950

I

63.9

43.8

5.9

22.1

15.7

10.5

4.5

2.5

2.1

3.7

2.3

2.2

. 3

3.0

2.6

9.3

4.7

3.1

1.6

4.6

II

67.5

47.2

7.1

24.0

16.2

10.5

6.0

3.5

2.5

4.6

- . 2

. 5

3.3

2.8

9.3

4.3

3.0

1.3

4.9

III

73.1

50.0

8.8

25.0

16.3

13.8

7.2

4.4

2.8

5.0

1.6

1.3

- . 3

3.2

3.5

9.6

4.6

3.5

1.1

5.0

I V

80.1

54.0

8.6

28.7

16.7

15.1

6.5

3.7

2.8

5.7

2 9

2.6

3.7

3.6

10.9

5.6

4.6

1.1

5.2

Year

284.6

195.0

30.4

99.8

64.9

50.0

24.2

14.1

10.1

18.9

6 8

6.0

.6

13.1

12.5

39.0

19.3

14.3

5.2

.1

19.7

I

77.0

50.1

7.3

25.5

17.2

14.9

5.5

2.9

2.6

4.9

4.6

4.3

2

3.9

4.0

12.1

7.1

6.0

1.1

5.0

II

80.6

51.0

7.2

26.4

17.5

14.4

6.3

3.2

3.1

5.5

2 6

2.3

. 6

4.6

4.0

14.6

9.1

7.9

1.3

5.5

1951

I II

82.7

50.9

6.9

26.5

17.5

14.7

6.8

3.3

3.5

5.1

2 8

2.6

. 7

4.4

3.8

16.3

10.8

9.6

1.3

. 1

5.6

IV

88.7

57.7

8.0

31.7

18.0

12.3

6.3

3.1

3.1

5.8

2

1.3

4.9

3.7

17.4

11.8

10.4

1.5

. 1

5.7

Year

329.0

209.8

29.5

110.1

70.2

56.3

24.8

12.5

12.3

21.3

10 2

9.1

2.4

17.9

15.5

60.5

38.8

33.9

5.2

.3

21.7

Line

I

:

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

Table 1-4.—Gross National Product or Expenditure, Quarterly, 1954-57

[Billions of dollars]

1954

I

87.1

55.4

7.1

27.0

21.3

12.3

5.9

2.8

3.2

4.9

1.4

1.4

3.9

3.9

19.4

13.2

11.1

2.1

.1

6.2

II

89.5

59.0

8.2

29.3

21.5

11.3

7.3

3.8

3.5

5.6

-1. 7

-1. 8

. 3

4.6

4.4

18.8

11.9

10.5

1.5

.1

7.0

I II

89.6

58.1

7.6

28.9

21.5

12.8

8.4

4.5

3.9

4.9

- . 5

— .7

i

4.1

4.2

18.7

11.5

10.0

1.6

.1

7.2

IV

97.0

65.5

9.5

34.1

21.9

12.4

8.1

4.3

3.7

5.3

Q

— 1.1

. 8

4.8

4.1

18.3

11.0

9.5

1.5

.1

7.3

Year

363.1

238.0

32.4

119.3

86.3

48.9

29.7

15.4

14.3

20.8

-1. 6

-2. 1

1.0

17.5

16.5

75.3

47.5

41.2

6.7

.3

27.7

1955

I

92.7

59.2

8.7

27.8

22.6

15.1

7.2

3.7

3.4

4.6

3.3

3.1

.4

4.6

4.2

18.1

11.2

9.8

1.5

.1

6.9

II

97.7

63.3

10.0

30. 3

23. Q

15.2

8.9

4.9

4.0

5.8

.5

.4

. 2

4.8

4.6

19.0

11.3

9.8

1.6

.1

7.7

I II

100.0

63.6

9.8

30.5

23.4

17.2

9.8

5.3

4.5

5.9

1.4

1.4

4.7

4.7

19.1

11.4

9.8

1.6

.1

7.8

IV

107.1

70.9

11.1

36. 2

23.6

16.3

9.1

4.7

4.3

6.7

.5

.5

. 5

5.3

4.7

19.3

11.4

9.7

1.8

.1

7.9

Year

397.5

256.9

39.6

124.8

92.5

63.8

34.9

18.7

16.2

23.1

5.8

5. 5

1.1

19.4

18.3

75.6

45.3

39.1

6.6

.4

30.3

1956

I

99.1

63.1

8.8

29.9

24.4

17.2

7.5

3.6

3.9

5.8

3.9

4.0

. 3

5.2

4.9

18.6

11.1

9.7

1.5

.1

7.4

II

102.5

66.0

9.6

31.7

24.7

16.3

9.1

4.6

4.5

6.9

.3

. 5

.7

5.8

5.1

19.5

11.2

9.9

1.4

.1

8.3

I II

104.5

66.0

8.9

31.9

25.2

17.9

10.0

5.0

5.0

6.6

1.3

1.4

.4

5.6

5.2

20.2

11.6

10.3

1.4

.1

8.6

IV

113.1

74.3

11.1

37.8

25.4

16.9

9.2

4.5

4.7

7.6

1.5

6.4

4.9

20.5

11.8

10.4

1.4

.1

8.7

Year

419.2

269.4

38.4

131. 4

99.6

68.2

35.7

17.7

18.1

27.0

5.4

5.9

2.8

23.0

20.2

78.8

45.7

40.3

5.7

.3

33.1

1957

I

104.6

66.3

9.2

31.0

26.2

16.4

7.7

3.4

4.3

6.3

2.4

2.2

1.5

6.6

5.1

20.5

12.2

10.9

1.4

.1

8.3

II

109.6

70.2

10.0

33.6

26.6

16.3

9.2

4.3

4.8

7.4

- . 3

— .5

1.4

6.8

5.4

21.7

12.5

11.3

1.3

.1

9.2

I II

110.5

70.6

9.6

34.1

26.8

17.4

10.1

4.8

5.3

6.9

.4

.2

.7

6.1

5.4

21.8

12.5

11.3

1.3

.1

9.3

IV

115.6

77.3

11.1

39.3

26.9

15.2

9.5

4.5

5.0

7.3

-1. 6

— 1.8

1.3

6.4

5.2

21.8

12.2

10.9

1.4

.1

9.6

Year

440.3

284.4

39.9

138.0

106.5

65.3

36.5

17.0

19.5

27.9

1.0

.2

4.9

26.0

21.0

85.7

49.4

44.3

5.5

.4

36.3

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

466759 0—59 9

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
124 NATIONAL INCOME AND PRODUCT TABLES

Table 1-5.—Gross National Product or Expenditure, Seasonally Adjusted Quarterly Totals at Annual Rates, in Constant Dollars, 1947—48 ]

[Billions of 1954 dollars]

Line

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—total

Nonfarm only

Net exports of goods and services

Government purchases of goods and services.

Federal

State and local.

1947

278.4

192.5

21.8

104.7

65.9

40.6

18.4

8.6

9.9

21.5

.6

1.4

8.5

36.8

19.6

17.2

280.4

196.1

23.1

106. 4

66. 5

39.3

18.3

8.2

10. 0

21.6

- . 5

1.8

8.7

36.3

18.7

17.6

III

282.9

196.9

23.5

105.8

67.5

39.2

20.2

9.6

10.5

21.6

-2. 5

- . 3

8.8

38.0

20.0

18.0

IV

287.2

197.0

24.7

104.3

68.0

46.4

22.3

11.6

10.7

22.1

2.0

2.9

6.2

37.6

19.1

18.5

Year

282.3

195.6

23.3

105.3

67.0

41.5

19.9

9.6

10.3

21.7

- . 1

1.4

8.0

37.2

19.4

17.8

I

286.4

198.1

24.0

105.3

68.9

47.4

22.0

11.4

10.7

22.8

2.7

1.9

2.9

37.9

19.2

18.7

II

293.3

199.0

24.8

104.9

69.3

50.7

23. 1

12.0

11.2

22.6

4.9

3.1

1.7

42.0

22.9

19.1

1948

III

24.1

19.4

1. Implicit price deflators are shown in table VII-3.

Table I—5.—Gross National Product or Expenditure, Seasonally Adjusted Quarterly Totals at Annual Rates, in Constant Dollars, 1953—54l

[Billions of 1954 dollars]

Line

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—total

Nonfarm only

Net exports of goods and services. .

Government purchases of goods and services

Federal

State and local..

1953

368.9

234.0

33.0

118. 1

82.8

52.8

27. 1

13.6

13.5

23.1

2.6

3.2

- . 8

83.0

57.9

25. 1

373.2

236.2

33. 5

119.2

83.6

53.0

27. 6

13.8

13.8

22.2

3.2

4. 1

-1. 1

85.1

60. 0

25.1

III

370.2

236.0

33.7

118.1

84.1

51.0

27.6

13.5

14.1

1.5

-1. 2

84.4

58.8

25.6

IV

363.9

234.1

32.1

117.7

84.3

45.4

27.8

13.5

14.3

22.2

-4. 6

-4. 3

- . 5

84.9

58.7

26.2

Year

369.0

235.1

33.1

118.3

83.7

50.6

27.6

13.6

14.0

22.5

.5

1. 1

- . 9

84.3

58.8

25.5

1954

360.4

233.4

31.2

117.4

84.9

46.9

27.9

13.7

14.2

21.5

-2. 5

-2. 6

- . 1

80.1

53.1

27.0

359.5

236.4

32.2

118.6

85.6

47.0

28.9

14.8

14.1

20.9

-2. 9

-3. 4

.9

75.2

47.7

27.5

III

362.1

239.0

32.4

119.8

86.8

48.9

30.2

15.8

14.4

20.7

-2. 0

-2. 7

.6

73.6

45.5

28.1

IV

370.1

243.2

33.9

121.5

87.9

52.2

31.5

16.9

14.6

19.9

.1

2.4

72.2

43.9

28.3

Year

363.1

238.0

32.4

119.3

86.3

48.9

29.7

15.4

14.3

20.8

-1. 6

-2. 1

1.0

75.3

47.5

27.7

1. Implicit price deflators are shown in table VII-3.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
GROSS NATIONAL PRODUCT AND NATIONAL INCOME 125

Table 1-5.—Gross National Product or Expenditure, Seasonally Adjusted Quarterly Totals at Annual Rates, in Constant Dollars, 1949—52 l

[Billions of 1954 dollars]

1949

I

291.5

199.9

23.7

105. 9

70.4

41.9

21.3

10. 1

11.2

21.0

- . 4

.4

3.4

46.3

25.6

20.7

II

290.3

203.6

26.0

106. 4

71.2

35.8

21.4

10.3

11.1

20.4

-6. 0

-4. 6

3.4

47.4

25.8

21.6

I II

295.6

204.8

27.1

105. 6

72.1

39.8

22.5

11.5

11.0

19.3

-2. 0

- . 8

2.8

48.2

25.9

22.4

IV

293.0

209.0

28.5

107.3

73.2

36.4

23.9

12.8

11.1

18.5

-6. 0

-5. 4

.9

46.8

23.8

23.0

Year

292.7

204.3

26.3

106. 3

71.7

38.5

22.3

11.2

11.1

19.8

-3. 6

-2. 6

2.6

47.2

25.3

21.9

1950

I

302.7

210.7

29.0

107.9

73.8

46.2

25.3

14.0

11.3

18.2

2.7

2.4

1.1

44.6

21.1

23.6

II

312.0

214.2

29.8

108.9

75.4

53.8

27.3

15. 5

11.8

21.1

5.4

4.8

.6

43.5

20.0

23.5

I II

325.6

225.6

37.3

111.9

76.3

56.5

28.3

16.5

11.8

23.0

5.2

4. 1

- . 7

44.2

20.7

23.5

IV

331.6

217.0

32.2

108.1

76.7

66.3

28 0

15.4

12.6

22.8

15.5

14.5

.0

48.3

24.7

23.6

Year

318.1

216.8

32.1

109.2

75.5

55.9

27.4

15.5

11.9

21.3

7. 2

6.5

.2

45.1

21.6

23.5

I

334.0

222.3

33. 0

112 0

77.2

59.1

27.6

14.8

12.8

21.5

10.0

9.2

.0

52.5

28.8

23.8

II

340.0

214.5

27.8

109. 2

77.6

62.7

26.2

12.9

13.4

22.0

14.5

13.7

1.8

61.1

36.9

24.1

1951

I II

346. 3

217.5

28. 1

110.9

78.6

57.7

25. 6

12.0

13.5

22.3

9.8

9.2

3.6

67.6

43.3

24.2

IV

346.9

219.8

27 7

112.7

79.4

51.9

25. 3

12.1

13.2

22.2

4.5

3.9

3.6

71.6

47.4

24. 1

Year

341.8

218.5

29. 2

111.2

78.2

57.7

2fi.O

12.9

13.2

22.0

9.7

9.0

2.2

63.3

39.3

24.1

I

349.6

220.0

27.0

113.2

79.8

52.7

25. 7

12.4

13.3

22.5

4.6

4.0

3.5

73.4

49.1

2,3

II

349.3

222.7

28.4

114. 1

80.2

46.0

25. 8

12.6

13.2

22.9

-2. 7

-3. 3

2.8

77.7

53.2

24.5

1952

I II

352.6

223.8

27.0

115.8

81.0

49.5

25.7

12.8

13.0

20. 0

3.8

3.3

- . 2

79.5

55. 2

24.4

IV

362.3

230.2

31.6

116.7

81.9

53.2

26.5

13.4

13.1

21.8

4.9

4.7

- u.

80.0

55. 3

Year

353.5

224.2

28.5

115.0

80.8

50.4

26.0

12.8

13.2

21.8

2.6

2.2

1.2

77.7

53.3

24.5

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

Table 1-5.—Gross National Product or Expenditure, Seasonally Adjusted Quarterly Totals at Annual Rates, in Constant Dollars, 1955-57

[Billions of 1954 dollars]

382.2

248.7

37.9

121.6

89.2

58.5

33. 5

18.3

15.2

4.7

3.9

1.5

73.4

44. 3

29.2

II

389.5

253.7

39. 0

124.3

90.4

62.3

34. 0

18.5

15. 5

21.7

6. 5

5.8

.4

73.1

43.4

29.7

I II

397.5

259.9

41.5

126.7

91.7

63.9

P.4. 2

18.2

16. 0

23.7

6. 0

5.4

1.2

72.6

42.9

29.7

IV

401.1

261.8

39.9

128.9

92.9

65.2

33. 7

17.6

16.1

24.4

7. 1

(). 6

.7

73.5

43. 6

29.9

Year

392.7

256.0

39. 6

125.4

91.0

62.5

33. 9

18.2

15. 7

22.5

6.1

5.4

.9

73.2

43.5

29.7

1956

399.6

262.7

38.8

130.0

93. 9

61.5

33. 2

16.8

16.3

24.4

6. 9

7.0

.3

72.1

41.0

30.4

400.4

262.9

37. 5

130. 3

95. 0

62.8

32.7

16. 1

16. 1

2i. 6

5. 5

5. 8

2.5

72.3

41.6

30.7

III

401.4

262.7

36. 8

129.7

96. 3

62.8

16.1

16.6

24. 9

5. 2

5.1

2.9

73.1

42.3

30. 8

IV

407.1

266. 6

38. 4

130. 8

97.4

62. 5

32. 7

16.2

16. 5

25. 1

4.6

4.2

4.0

74.0

42.7

31.3

Year

402.2

263.7

'M. 9

130. 2

95. 6

63.1

32. S

16.4

16. 4

24. S

5. 6

2.4

72.9

42.0

30.9

1

107.9

268.5

38.7

131.6

UK. 2

59.3

15. 7

16. 9

4.6

75.5

43.4

32.1

II

109. 3

269. 3

r

Al .'5

59.5

31.»

15.0

16. 9

24. 3

3.3

1.8

5.1

75.4

43.4

31.9

1957

I II

109.1

272.9

3S. 5

m. I

100.0

58. 1

:V2. l

15. 2

16. 9

21. 0

2. 3

.8

3.7

74.1

42.3

31.8

IV

401.2

270.4

37. 6

132.4

100.3

54.0

32. 5

15.9

IB. 6

22. 7

-1. 3

- 2 . 7

2.0

74. 8

41. S

33. 0

Year

107.0

270.3

38. 1

132. 7

09.4

57.8

K». 9

24. 1

1, 1

. 1

3.9

75.0

42.7

32. 3

Line

10

11

12

13

U

l,'i

16

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
126 NATIONAL INCOME AND PRODUCT TABLES

Table 1-6.—Gross National Product by Major Type of Product, 1929-40 l

[Billions of dollars]

Line

Gross national product.

Final sales

Inventory changeGoods output ,

Final sales

Inventory change-.

Durable goods output.

Final sales

Inventory change..

Nondurable goods output.

Final sales

Inventory change

Services

Construction.

1929

104.4

102.8

1.7

56.3

54.6

1.7

18.1

16.7

1.4

38.1

37.9

.3

37.0

11.2

1930

91.1

91.5

-.4

47.1

47.5

-.4

11.8

12.9

-1.0

35.2

34.6

.6

35.0

9.0

1931

76.3

77.(5

-1.3

37.4

38.7

-1.3

8.0

9.2

-1.2

29.5

29.5

.0

32.2

6.6

1932

58.5

61.0

-2.6

26.8

29.3

-2.6

3.8

5.8

-2.0

23.0

23.5

-.5

28.0

3.7

1933

56.0

57.6

-1.6

27.1

28.7

-1.6

5.1

5.6

-.5

22.0

23.1

-1.1

26.1

2.8

1934

65.0

66.1

-1.1

34.1

35.3

-1.1

7.7

7.6

.1

26.4

27.7

-1.3

27.5

3.3

1935

72.5

71.6

.9

39.9

39.0

.9

9.6

9.3

.3

30.2

29.7

.6

28.7

3.9

1936

82.7

81.8

1.0

45.7

44.7

1.0

12.6

11.7

.9

33.1

33.0

.0

31.5

5.5

1937

90.8

88.5

2.2

51.4

49.1

2.2

14.5

13.7

.8

36.8

35.4

1.5

32.9

6.6

1938

85.2

86.2

-.9

45.4

46.4

n

10.3

11.1

-.9

35.2

35.3

-.1

33.7

6.1

1939

91.1

90.7

.4

49.2

48.8

.4

13.1

12.8

.3

36.0

36.0

.1

34.5

7.4

1940

100.6

98.4

2.2

56.4

54.3

2.2

17.3

16.1

1.2

39.1

38.2

1.0

36.0

8.2

1. For further detail see table VII-5.

Table I—7.—Gross National Product by Major Type of Product, in Constant Dollars, 1929—40 *

[Billons of 1954 dollars]

Line

Gross national product..

Final sales

Inventory change..

Goods output

Final sales

Inventory change..

Durable goods output..

Final sales

Inventory change. .

Nondurable goods output..

Final sales

Inventory change

Services

Construction.

1929

181.8

178.8

3.0

95.4

92.5

3.0

30.8

28.2

2.6

64.7

64.3

.4

60.3

26.1

1930

164.5

165.2

- . 7

83.4

84.1

- . 7

20.5

22.4

-2. 0

63.0

61.7

1.3

59.3

21.8

1931

153.0

154. 7

-1. 8

77.8

79.5

-1. 8

15.0

17.8

-2. 8

62.8

61.7

1.0

57.7

17.5

1932

130.1

135.7

-5. 6

64.3

69.9

-5. 6

7.6

12.4

-4. 8

56.7

57.5

o

54.1

11.8

1933

126.6

130.8

-4. 2

63.6

67.8

-4. 2

10.6

12.1

-1. 5

53.0

55.7

-2. 7

54.6

8.4

1934

138.5

141.2

-2. 8

72.0

74.7

-2. 8

15.6

15.4

.2

56.3

59.3

-3. 0

57.4

9.2

1935

152.9

150.3

2.6

82.4

79.7

2.6

19.8

19.0

62.6

60.7

1.9

59.7

10.9

1936

173.3

171.0

2.4

93.9

91.6

2.4

26.2

24.2

2.0

67.7

67.4

.3

64.3

15.1

1937

183.5

178.3

5.2

102.1

96.9

5.2

28.7

27.0

1.6

73.5

69.9

3.6

65.0

16.4

1938

175.1

176.9

-1. 8

93.9

95.7

-1. 8

19.7

21.6

-1. 9

74.2

74.1

.1

65.9

15.3

1939

189.3

188.3

1.0

102.7

101.7

1.0

25.5

25.0

.5

77.2

76.7

.4

67.6

19.0

1940

205.8

201.4

4.5

115.5

111.0

4.5

33.1

30.8

2.4

82.3

80.3

2.1

70.2

20.1

1. For further detail see table VII-6. Implicit price deflators are shown in table VII-4.

Table 1-8.—National Income by Type of Income, 1929-40

[Millions of dollars]

Line

National income

Compensation of employees.

Wages and salaries

Private

Military

Government civilian L.

Supplements to wages and salaries

Employer contributions for social insurance...

Other labor income

Employer contributions to private pension

and welfare funds.

Other

Proprietors' income

Business and professional

Income of unincorporated enterprises..

Inventory valuation adjustment

Farm

Rental income of persons

Corporate profits and inventory valuation adjustment.

Profits before tax

Profits tax liability

Profits after tax

Dividends

Undistributed profits

Inventory valuation adjustment

Ne t interest

1929

87,814

51,085

50, 423

45, 485

308

4,630

662

101

561

169

392

14,759

8,791

8,649

142

5,968

5,425

10,100

9,628

1,369

8,259

5,813

2,446

472

6,445

1930

75,729

46,844

46,187

41, 033

311

4, 843

657

106

551

160

391

11,540

7,410

6,655

755

4,130

4,778

6,582

3,322

842

2,480

5,490

- 3 , 010

3,260

5,985

1931

59,708

39,740

39,119

33, 861

304

4, 954

621

111

510

158

3.52

8,734

5,581

4,970

611

3,153

3,761

1,634

-78 0

498

-1,27 8

4,088

-5,36 6

2,414

5,839

1932

42,547

31,054

30, 477

25, 511

292

4,674

577

126

451

148

303

5,316

3,384

3,089

295

1,932

2,713

-1,970

- 3 , 017

385

- 3 , 402

2,565

- 5 , 967

1,047

5,434

1933

40,159

29,539

28, 997

23, 855

267

4,875

542

133

409

140

5,599

3,166

3,691

-52 5

2,433

1,971

-1,99 2

151

521

-37 0

2,056

-2,42 6

-2,14 3

5,042

1934

48,959

34,295

33, 705

27, 629

268

5,808

590

147

443

166

277

7,010

4,564

4,618

- 5 4

2,446

1,694

1,091

1,716

744

972

2,587

-1,61 5

-62 5

4,869

1935

57, 057

37,340

36, 690

30,189

303

6,198

650

171

479

180

299

10,387

5,351

5,401

- 5 0

1,661

2,918

3,145

951

2,194

2,863

-66 9

-22 7

4,751

1936

64,911

42,910

41, 920

34, 054

334

7,532

990

418

572

238

334

10,482

6,530

6,650

-12 0

3,952

1,776

5,002

5,740

1,409

4,331

4,548

-21 7

-738

4,741

1937

73,618

47,934

46,107

38, 614

354

7,139

1,827

1,234

593

218

375

12,691

7,073

7,102

-29

5,618

2,081

6,204

6,235

1,502

4,733

4,685

48

-31

4,708

1938

67,581

44,994

42, 976

34, 752

365

7,859

2,018

1,423

595

228

367

11,128

6,793

6,572

221

4,335

2,560

4,263

3,300

1,029

2,271

3,187

-916

963

4,636

1939

72,753

48,108

45, 941

37, 742

388

7,811

2,167

1,540

627

248

379

11,610

7,293

7,459

-166

4,317

2,742

5,689

6,403

1,441

4,962

3,788

1,174

-714

4,604

1940

81,634

52,129

49, 818

41, 395

563

7,860

2,311

1,624

687

282

405

13,010

8,442

8,487

-45

4,568

2,885

9,120

9,320

2,834

6,486

4,043

2,443

-200

4,490

1. Includes also the pay of employees of government enterprises and of permanent United States residents employed in the United States by foreign governments and international

organizations.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
GROSS NATIONAL PRODUCT AND NATIONAL INCOME 127

Table 1-6.—Gross National Product by Major Type of Product, 1941-57l

[Billions of dollars]

1941

125.8

121.3

4.5

73.2

68.7

4.5

27.8

24.7

3.0

45.5

44.0

1.5

40.9

11.6

1942

159.1

157.3

1.8

94.5

92.7

1.8

36.0

35.0

1.0

58.6

57.8

.8

50.5

14.1

1943

192.5

193.3

- .8

121.3

122.0

- .8

54.6

54.6

.0

66.7

67.4

- .8

62.6

8.6

1944

211.4

212.4

-1.0

133.8

134.8

-1.0

58.4

59.1

- .6

75.3

75.7

- .4

71.9

5.8

1945

213.6

214.6

-1.1

130.7

131.7

-1.1

49.5

50.7

-1.3

81.2

81.0

.2

76.7

6.2

1946

210.7

204.3

6.4

128.8

122.4

6.4

39.8

34.5

5.3

89.0

87.9

1.1

68.5

13.4

1947

234.3

234.8

143.8

144.3

- .5

47.4

46.0

1.4

96.4

98.2

-1.8

71.8

18.7

1948

259.4

254.7

4.7

157.0

152.3

4.7

49.8

48.9

.9

107.2

103.4

3.8

78.1

24.3

1949

258.1

261.1

-3.1

149.3

152.4

-3.1

47.9

49.9

-2.1

101.5

102.4

-1.0

83.5

25.2

1950

284.6

277.8

6.8

163.6

156.8

6.8

60.7

56.7

4.0

102.9

100.1

2.8

89.8

31.2

1951

329.0

318.7

10.2

191.8

181.6

10.2

74.4

67.5

6.9

117.4

114.1

3.3

102.9

34.2

1952

347.0

343.9

3.1

198.2

195.2

3.1

75.6

74.5

1.2

122.6

120.7

1.9

112.3

36.4

1953

365.4

364.9

.4

206.9

206.4

.4

79.8

78.9

.9

127.0

127.5

- .5

119.5

39.0

1954

363.1

364.8

-1.6

197.4

199.0

-1.6

71.6

74.1

-2.5

125.9

125.0

.9

124.1

41.6

1955

397.5

391.7

5.8

217.2

211.4

5.8

84.3

81.3

3.0

132.9

130.2

2.7

133.4

46.9

1956

419.2

413.8

5.4

226.9

221.4

5.4

89.1

85.8

3.3

137.8

135.7

2.1

143.6

48.7

1957

440.3

439.4

1.0

234.7

233.7

1.0

91.7

91.0

.8

142.9

142.7

.2

154.8

50.8

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Table 1-7.—Gross National Product by Major Type of Product, in Constant Dollars, 1941-57 *

[Billions of 1954 dollars]

1941

238.1

229.5

8.6

133.0

124.4

8.6

46.1

40.3

5.8

87.0

84.2

2.8

78.5

26.5

1942

266.9

263.2

3.6

146.9

143.3

3.6

50.2

47.8

2.4

96.7

95.5

1.2

92.2

27.8

1943

296.7

297.3

- .6

171.4

172.0

- .6

73.7

73.2

.4

97.8

98.7

-1.0

109.9

15.4

1944

317.9

319.6

-1.7

188.1

189.8

-1.7

82.5

83.7

-1.2

105.6

106.1

- .5

119.5

10.4

1945

314.0

316.4

-2.4

183.1

185.5

-2.4

72.9

75.4

-2.5

110.3

110.1

.2

120.1

10.8

1946

282.5

273.5

9.0

164.2

155.2

9.0

53.2

45.4

7.8

111.0

109.7

1.3

97.4

20.8

1947

282.3

282.4

- .1

163.3

163.4

- .1

55.8

54.3

1.5

107.5

109.2

-1.6

94.7

24.3

1948

293.1

288.7

4.4

167.7

163.4

4.4

55.4

54.6

.8

112.3

108.8

3.5

97.2

28.2

1949

292.7

296.3

-3.6

162.3

165.9

-3.6

51.9

54.3

-2.4

110.5

111.6

-1.2

100.7

29.7

1950

318.1

310.9

7.2

177.6

170.4

7.2

65.3

61.0

4.3

112.3

109.4

2.9

105.0

35.4

1951

341.8

332.1

9.7

191.7

182.0

9.7

74.6

67.4

7.1

117.1

114.5

2.6

114.2

36.0

1952

353.5

350.9

2.6

196.8

194.2

2.6

75.1

73.9

1.2

121.8

120.3

1.5

119.8

36.9

1953

369.0

368.5

.5

207.7

207.2

.5

80.8

79.8

1.0

126.9

127.4

- .5

122.5

38.8

1954

363.1

364.8

-1.6

197.4

199.0

-1.6

71.6

74.1

-2.5

125.9

125.0

.9

124.1

41.6

1955

392.7

386.6

6.1

216.9

210.8

6.1

83.1

80.1

3.0

133.8

130.7

3.1

130.2

45.6

1956

402.2

396.6

5.6

221.5

215.9

5.6

84.4

81.5

3.0

137.1

134.5

2.6

136.0

44.8

1957

407.0

405.5

1.4

220.2

218.8

1.4

83.1

82.4

.7

137.2

136.4

.8

141.8

45.0

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Table 1-8.—National Income by Type of Income, 1941-57

[Millions of dollars]

1941

104,710

64,789

62,086

51,894

1,866

8,326

2,703

1,983

720

314

406

17,401

10,897

11,512

-615

6,504

3,465

14,511

16, 982

7,610

9,372

4, 458

4,914

- 2 , 471

4,544

1942

137,694

85,271

82,109

66,123

6,168

9,818

3,162

2,302

860

401

459

23,907

13,899

14, 266

-367

10,008

4,547

19,678

20, 882

11, 415

9,467

4,289

5,178

-1,204

4,291

1943

170,310

109,587

105,828

79,197

14,133

12, 498

3,759

2,677

1,082

586

496

28,187

16,823

16,979

-156

11,364

5,097

23,781

24, 554

14,074

10,480

4,484

5,996

-773

3,658

1944

182,639

121,286

116,823

83,843

20,033

12,947

4,463

2,937

1,526

948

578

29,565

18,040

18,109

- 69

11, 525

5,413

23,033

23,320

12,949

10, 371

4,673

5,698

-287

3,342

1945

181,248

123,181

117, 577

82,664

21,819

13,094

5.604

3,805

1,799

1,132

667

30,835

19,011

19,117

-106

11,824

5,634

18,413

18,977

10,689

8,288

4,691

3,597

-564

3,185

1946

180,879

117,697

111, 836

91, 241

7,818

12, 777

5,861

3,970

1,891

1,231

660

36,573

21, 321

23,026

-1,705

15, 252

6,208

17,288

22, 551

9,111

13, 440

5,784

7,656

-5,263

3,113

1947

198,177

128,757

122, 858

105, 512

4,067

13, 279

5,899

3,565

2,334

1,555

779

35,492

19,948

21, 419

-1,471

15, 544

6,510

23,626

29,525

11, 283

18, 242

6,521

11, 721

-5,899

3,792

1948

223,487

140,969

135, 214

116,443

3,970

14, 801

5,755

3,042

2,713

1,810

903

40,194

22, 405

22, 815

-410

17, 789

7,297

30,848

33,000

12, 483

20, 517

7,243

13, 274

-2,152

4,179

1949

217,690

140,834

134, 310

113, 809

4,248

16, 253

6,524

3,503

3,021

2,024

997

35,583

22, 657

22,194

463

12, 926

8,274

28,226

26, 370

10, 375

15, 995

7,473

8,522

1,856

4,773

1950

241,876

154,190

146,391

124,121

4,999

17, 271

7,799

3,976

3,823

2,743

1,080

37,541

23, 541

24, 635

-1,094

14,000

9,013

35,663

40, 628

17,865

22, 763

9,208

13, 555

-4,965

5,469

1951

279,313

180,327

170, 788

141, 928

8,684

20,176

9,539

4,753

4,786

3,582

1,204

42,329

25,995

26,322

-327

16, 334

9,431

40,954

42,153

22,447

19, 706

9,029

10, 677

-1,199

6,272

1952

292,155

195,012

184,835

151, 870

10,472

22,493

10,177

4,861

5,316

4,019

1,297

42,233

26,896

26, 695

201

15,337

10,154

37,672

36, 691

19, 459

17,232

8,954

8,278

981

7,084

1953

305,573

208,812

198,030

164,157

10,337

23, 536

10, 782

4,788

5,994

4,598

1,396

40,723

27,445

27, 613

-168

13, 278

10,528

37,314

38, 311

20, 222

18,089

9,225

8,864

-997

8,196

1954

301,794

207,595

196, 259

161, 867

9,951

24,441

11,336

5,122

6,214

4,739

1,475

40,442

27, 751

27,800

- 49

12, 691

10,869

33,743

34,061

17,220

16,841

9,839

7,002

-318

9,145

1955

330,206

223,852

210, 902

174,927

9,778

26,197

12,950

5,814

7,136

5,523

1,613

42,149

30,382

30, 580

-198

11, 767

10,698

43,126

44,862

21,827

23,035

11, 215

11, 820

-1,736

10,381

1956

349,356

241,799

227,304

189, 258

9,668

28,378

14,495

6,597

7,898

6,070

1,828

42,435

30, 803

31,300

-497

11, 632

10,887

42,933

45, 493

22, 422

23,071

12,038

11,033

-2,560

11,302

1957

363,951

254,637

238,120

198,001

9,634

30,485

16, 517

7,570

8,947

6,957

1,990

43,001

31,403

31,700

-297

11, 598

11,837

41,878

43,426

21, 649

21, 777

12,355

9,422

-1,548

12,598

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
128 NATIONAL INCOME AND PRODUCT TABLES

Table 1-9.-—National Income by Type of Income, Seasonally Adjusted Quarterly Totals at Annual Rates, 1946-47

[Billions of dollars]

Line

Na tional income

Compensation of employees.

Wages and salaries

Private

Military

Government civilianx _

Supplements to wages and salaries.

Proprietors' income

Business and professional_

Farm

Rental income of persons

Corporate profits and inventory valuation adjustment.

Profits before tax

Profits tax liability.

Profits after tax

Inventory valuation adjustment..

Net interest

I

169.6

113.2

107. 3

82.4

12.5

12. 4

5.8

34.0

20.7

13.3

5.9

13.5

14.7

6.0

8.8

-1. 2

3.0

1946

II

176.6

115.2

109.3

89.1

7.6

12.6

5.9

35.8

21.7

14. 1

6.1

16.5

19.3

7.8

11.5

-2. 8

3.0

III

185.2

119.5

113.6

94.8

5.9

12.9

5.9

38.4

21.8

16.6

6.2

17.9

26.0

10.5

15.5

-8. 1

3.1

IV

191.9

122.7

116.8

98.4

5.3

13.2

5.9

38.0

21.0

17.0

6.6

21.2

30.2

12.2

18.0

3.3

Year

180.9

117.7

111.8

91.2

7.8

12.8

5.9

36.6

21.3

15.3

6.2

17.3

22.6

9.1

13.4

-5. 3

3.1

1947

193.1

125.7

119.6

101.8

4.7

13.2

6.0

37.2

20.1

17.1

6.5

20.2

29.8

11.4

18.4

-9. 7

3.5

II

194.5

127.1

121.0

103.6

4.0

13.4

6.1

33.6

19.8

13.9

6.2

23.8

28.5

10.9

17.6

-4.7

3.7

III

198.4

128.8

123.2

106.3

3.8

13.1

5.7

34.8

19.6

15.2

6.4

24.5

28.5

10.9

17.6

-4. 0

3.9

IV

206.5

133.2

127.5

110.1

3.9

13.5

5.8

36.3

20.3

16.0

6.9

26.0

31.2

11.9

19.3

-5.2

4.0

Year

198.2

128.8

122.9

105.5

4.1

13.3

5.9

35.5

19.9

15.5

6.5

23.6

29.5

11.3

18.2

-5. 9

3.8

1

1. Includes also the pay of employees of government enterprises and of permanent United States residents employed in the United States by foreign governments and internationa

organ izations.

Table 1-9.—National Income by Type of Income, Seasonally Adjusted Quarterly Totals at Annual Rates, 1952-53

[Billions of dollars]

Line

National income

Compensation of employees..

Wages and salaries

Private

Military

Government civilian1.

Supplements to wages and salaries..

Proprietors' income

Business and professional.

Farm

Rental income of persons

Corporate profits and inventory valuation adjustment.

Profits before tax

Profits tax liability..

Profits after tax

Inventory valuation adjustmentNet interest

287.2

190.3

180.4

148.3

10.2

21.9

10.0

41.2

26.4

14.7

9.9

39.1

37.9

20. 1

17.8

1 3

6.7

1952

288.0

192.0

181.9

149.0

10.6

22.3

10. 1

42.4

26.8

15.6

10.1

36.6

35.5

18.8

16.7

1.2

6.9

III

292.4

195.0

184.8

151.4

10.7

22.7

10.2

43.9

26.8

17.1

10.3

36.0

35.3

18.7

16.6

.7

7.2

IV

202.4

191.9

158.4

10.5

23.1

10.5

41.4

27.5

13.9

10.4

38.1

20.2

17.9

7.5

Year

292.2

195.0

184.8

151.9

10.5

22.5

10.2

42.2

26.9

15.3

10.2

37.7

36.7

19.5

17.2

1.0

7.1

1953

306.3

206.4

195.7

162.0

10.3

23.4

10.7

41.2

27.6

13.7

10.4

40.5

40.9

21.6

19.3

- . 4

7.8

II

308.7

209.7

198.8

164.8

10.4

23.6

10.9

40.7

27.5

13.2

10.5

39.8

41.4

21.9

19.6

-1. 6

8.1

III

307.2

210.4

199.6

165.7

10.4

23.5

10.8

40.3

27.4

12.9

10.6

37.5

39.5

20.9

18.7

-2. 0

8.4

IV

300.1

208.8

198.0

164.1

10.3

23.6

10.8

40.7

27.3

13.3

10.7

31.4

31.4

16.6

14.8

.0

8.6

Year

305.6

208.8

198.0

164.2

10.3

23.5

10.8

40.7

27.4

13.3

10.5

37.3

38.3

20.2

18.1

-1. 0

8.2

1. Includes also the pay of employees of government enterprises and of permanent United States residents employed in the United States by foreign governments and internationa

organizations.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
GROSS NATIONAL PRODUCT AND NATIONAL INCOME 129

Table I—9»—'National Income by Type of Income, Seasonally Adjusted Quarterly Totals at Annual Rates, 1948—51

[Billions of dollars]

I

214.4

136.3

130.7

113.0

3.8

13.9

5.7

37.4

21.4

16.0

7.0

29.6

32.4

12.3

20.2

-2.9

4.1

II

222.6

139.1

133.4

115.3

3.9

14.2

5.7

41.3

22.2

19.1

7.1

30.9

33.8

12.8

21.0

-2. 9

4.1

1948

III

227.4

143.6

137.9

118.6

4.0

15.2

5.8

41.7

22.9

18.8

7.4

30.6

33.4

12.6

20.7

-2. 8

4.2

IV

229.2

144.5

138.7

118.6

4.2

15.8

5.9

40.4

23.1

17.3

7.6

32.4

32.4

12.3

20.2

- . 1

4.3

Year

223.5

141.0

135.2

116.4

4.0

14.8

5.8

40.2

22.4

17.8

7.3

30.8

33.0

12.5

20.5

-2. 2

4.2

1919

I

220.8

142.4

136.1

116.0

4.2

15.9

6. 3

36.4

22.7

13.7

7.9

29.6

28.2

11.1

17.1

1.4

II

217.4

141.1

134.7

114.4

4.1

16.2

6.5

35.9

23.0

12.9

8.1

27.6

24.7

9.7

15.0

2.8

4.7

I II

217.8

139.8

133.3

112.7

4.2

16.4

6.6

35.1

22.7

12.4

8.4

29.6

26.6

10.5

16.1

3.0

4.9

IV

214.8

139.9

133.2

112.2

4.5

16.5

6.7

35.0

22.3

12.7

8.7

26.2

26.0

10.2

15.8

. 2

5.0

Year

217.7

140.8

134.3

113.8

4.2

16.3

6.5

35.6

22.7

12.9

8.3

28.2

26.4

10.4

16.0

1.9

4.8

1950

I

222.1

143.2

136.0

114.9

4.4

16.6

7.3

35.5

22.2

13.3

8.8

29.4

30.1

13.2

16.8

- . 7

5.2

II

233.6

149.6

142.0

120.8

4.3

16.9

7.5

36.2

23.1

13.2

8.9

33.5

36.8

16.2

20.6

-3. 3

5.4

I II

250.6

158.0

150.0

127.6

4.9

17.5

8.0

38.8

24.5

14.2

9.1

39.2

46.5

20.4

26.0

-7. 3

5.6

IV

261.1

165.8

157.4

133.1

6.3

18.0

8.4

39.7

24.4

15.3

9.2

40.6

49.2

21.6

27.5

-8. 5

5.8

Year

241.9

154.2

146.4

124.1

5.0

17.3

7.8

37.5

23.5

14.0

9.0

35.7

40.6

17.9

22.8

-5. 0

5.5

1951

I

270.8

173.7

164.5

138.1

7.4

19.0

9.2

41.5

25.9

15.6

9.3

40.4

49.1

26.2

23.0

-8. 7

6.0

II

278.2

179.4

169.9

141.8

8.5

19.7

9.5

42.2

25.9

16.3

9.3

41.1

42.1

22.4

19.7

-1. 0

, 2

I II

282.0

182.5

172.9

142.8

9.2

21.0

9.6

42.4

26.0

16.4

9.5

41.2

37.8

20.1

17.7

3.5

6.4

IV

286.0

185.5

175.6

144.8

9.7

21.1

9.9

43.2

26.2

17.0

9.7

41.1

39.6

21.1

18.5

1.5

6.6

Year

279.3

180.3

170.8

141.9

8.7

20.2

9.5

42.3

26.0

16.3

9.4

41.0

42.2

22.4

19.7

-1. 2

6.3

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

Table 1-9.—National Income by Type of Income, Seasonally Adjusted Quarterly Totals at Annual Rates, 1954-57

[Billions of dollars]

1954

I

299.3

206.6

195.4

161.5

10.1

23.9

11.2

40.6

27.1

13.6

10.8

32.5

32.5

16.5

16.1

.0

8.8

II

299.4

206.6

195.4

161.2

10.0

24.3

11.2

39.6

27.6

12.0

10.9

33.3

33.3

16.9

16. r.

.0

9.0

I II

300.9

206.7

195.4

160.8

9.9

24.7

11.3

40.9

27.8

13.1

10.9

33.0

33.7

17.1

16.7

—. 7

9.3

IV

307.5

210.3

198.7

163.9

9.8

25.0

11.6

40.6

28.5

12.1

10.9

36.1

36.6

18.5

18.1

- . 5

9.6

Year

301.8

207.6

196.3

161.9

10.0

24.4

11.3

40.4

27.8

12.7

10.9

33.7

34.1

17.2

16.8

- . 3

9.1

1955

I

316.9

214.8

202.5

167.5

9.7

25.4

12.3

41.1

29.3

11.8

10.8

40.3

41.4

20.2

21.3

-1. 1

9.9

II

327.3

222.0

209.3

173.2

10.0

26.1

12.7

42.4

30.4

12.1

10.7

41.9

42.8

20.8

22.0

-.9

10.3

I II

335.0

226.8

213.5

177.3

9.8

26.4

13.3

42.6

30.9

11.7

10.6

44.4

46.6

22.7

23.9

-2. 2

10.6

IV

341.4

231.7

218.1

181.5

9.7

26.9

13.5

42.5

31.0

11.5

10.7

45.8

48.6

23.6

24.9

-2. 8

10.8

Year

330.2

223.9

210.9

174.9

9.8

26.2

13.0

42.1

30.4

11.8

10.7

43.1

44.9

21.8

23.0

-1. 7

10.4

1956

I

342.2

235.3

221.4

184.3

9.7

27.4

13.9

42.0

30.7

11.3

10.7

43.3

46.2

22.8

23.4

-2. 8

10.9

II

346.2

240.6

226.4

188.6

9.7

28.0

14.2

42.1

30.9

11.3

10.7

41.6

44.8

22.1

22.7

-3. 2

11.1

I II

350.8

243.0

228.2

189.8

9.7

28.8

14.7

42.7

30.8

11.9

10.9

42.8

44.3

21.8

22.4

-1. 5

11.4

IV

357.9

248.1

232.9

194.1

9.6

29.3

15.1

42.9

30.9

12.0

11.2

44.0

46.7

23.0

23. 7

-2. 7

11.7

Year

349.4

241.8

227.3

189.3

9.7

284

14.5

42.4

30.8

11.6

10.9

42.9

45.5

22.4

23.1

-2. 6

11.3

I

361.5

251.6

235.6

196,2

9.6

29.8

16.0

42.6

31.1

11.5

11.4

43.7

46.1

23.0

23.1

-2. 4

12.1

II

364.1

254.9

238.4

19S. 6

9.7

30.2

16.4

43.0

31.4

11.6

11.7

42.0

43.5

21.7

21.8

-1. 5

12.5

1957

I II

368.7

257.3

240.5

199.9

9.8

30.8

16.8

43.5

31.7

11.8

12.0

43.1

44.2

22.0

22.1

-1. 1

12.8

IV

361.5

254.8

238.0

197.4

9.5

31.1

16.8

42.8

31.3

11.5

12.2

38.8

39.9

19.9

20.0

-1. 1

12.9

Year

364.0

254.6

238.1

198.0

9.6

30.5

16.5

43.0

31.4

11.6

11.8

41.9

43.4

21.6

21.8

-1. 5

12.6

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

11

15

16

17

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
130 NATIONAL INCOME AND PRODUCT TABLES

Table 1-10.—National Income by Industry, 1929-40 l

[Millions of dollars]

Line

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

All industries, total

Agriculture, forestry, and fisheries

Farms

Agricultural services, forestry, and fisheries

Mining

Metal mining

Anthracite mining

Bituminous and other soft-coal mining

Crude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill products

Apparel and other finished fabric products

Lumber and furniture products

 2

Lumber and wood products, except furniture _

Furniture and fixtures

Lumber and timber basic products

Furniture and finished lumber products

Paper and allied products

Printing, publishing, and allied industries

Chemicals and allied products

 2

Products of petroleum and coal 2

Rubber products

Leather and leather products

Stone, clay, and glass products

Metals, metal products, and miscellaneous 2

Primary metal industries

Fabricated metal products, including ordnance.

Instruments

Miscellaneous manufacturing

Iron and steel and their products, including

ordnance.

Nonferrous metals and their products

Miscellaneous manufacturing

Machinery, except electrical2

Electrical machinery 2

Transportation equipment, except automobiles. _.

Automobiles and automobile equipment

Wholesale and retail trade

Wholesale trade

Retail trade and automobile services

Finance, insurance, and real estate

Banking

Security and commodity brokers, dealers and exchanges.

Finance, n. e. c

Insurance carriers

Insurance agents and combination offices

Real estate

Transportation

Railroads

Local and highway passenger transportation

Highway freight transportation and warehousing __

Water transportation

Air transportation (common carriers)

Pipeline transportation

Services allied to transportation

Communications and public utilities

Telephone, telegraph, and related services

Radio broadcasting and television ,

Utilities: electric and gas

Local utilities and public services, n. e. c

Services

Hotels and other lodging places

Personal services

Private households

Commercial and trade schools and employment

agencies.

Business services, n. e. c

Miscellaneous repair services and hand trades

Motion pictures

Amusement and recreation, except motion pictures

Medical and other health services

Legal services

Engineering and other professional services, n. e. c

Educational services, n. e. c

Nonprofit membership organizations, n. e. c

Government and government enterprises

Federal—general government

Federal—government enterprises

State and local —general government

State and local—government enterprises

Rest of the world

1929

87,814

8,278

8,083

195

2,048

466

284

649

447

202

3,808

21,888

2,135

256

1,796

1,262

1,528

1930

852

676

562

1,589

1,129

917

355

602

799

4,323

2,970

757

596

1,890

1,045

315

1,385

13,358

4,222

9,136

12,693

1,957

655

200

888

421

8,572

6,636

4,597

825

560

266

- 3

129

262

2,864

1,125

28

1,631

80

10,338

599

1,279

3,253

40

561

312

440

381

1,536

689

206

402

640

5,093

879

581

3,456

177

810

75,729

6,226

6,044

182

1,628

275

282

531

348

192

3,179

18,232

2,394

299

1,405

1,003

1,122

615

507

504

1,501

1,036

809

274

491

613

3,347

2,217

634

496

1,481

824

288

841

12,229

4,053

8,176

10,592

1,480

144

402

7,752

5,604

3,766

766

533

216

- 1 0

105

228

2,790

1,097

9

1,608

76

9,187

543

1,203

2,363

38

559

301

438

337

1,476

683

184

413

649

5,316

915

584

3,630

187

746

1931

653

281

372

388

1, 220

830

309

232

390

439

1,861

1,110

412

339

753

503

142

561

9,743

3,181

6,562

8,646

985

70

- 2 8

718

366

6,535

4,369

2,828

633

481

173

4

81

169

2,628

991

16

1,563

58

7,863

442

1,030

1,815

31

445

273

361

269

1,306

701

152

412

626

5,426

921

582

3, 737

186

547

1932

42,547

3,332

3,199

133

673

20

151

241

211

50

1,056

7,207

1,409

312

714

498

329

118

211

270

883

561

121

113

305

123

768

410

196

162

299

245

89

168

6,354

2,158

4,196

6,753

733

- 6 3

576

328

5,081

3,210

1,979

512

418

127

10

56

108

2,286

794

21

1,410

61

6,133

305

800

1,362

22

356

224

194

178

1,037

591

102

393

569

5,150

880

544

3,565

161

393

1933

40,159

3,713

3,590

123

647

38

130

257

181

41

755

7,562

1,331

142

699

542

305

123

182

290

793

621

76

102

271

208

1,031

684

153

194

424

276

69

382

5,485

1,781

3,704

5,745

495

260

0

571

289

4,130

3,036

1,866

450

416

153

10

47

94

2,000

691

14

1,237

58

5,567

271

695

1,199

20

330

191

210

154

948

561

98

363

527

5,326

1,164

485

3, 531

146

323

1934

48,959

3,723

3,603

120

1,158

123

172

417

376

70

1,066

10,905

1,599

146

1,102

784

547

264

283

418

928

726

120

134

413

330

1,781

1,086

381

314

733

376

119

649

8,056

2,476

5, 580

5,633

541

215

19

650

315

3,893

3,415

2,062

485

466

178

8

103

113

2,198

741

32

1, 359

66

6,231

341

782

1,336

23

424

203

283

197

1,036

600

113

361

532

6,271

1,694

540

3,884

153

303

57,057

6,411

6,268

143

1,211

166

139

446

378

82

1,297

13,265

1,873

203

1,201

850

328

341

461

1,042

806

208

213

376

409

2,345

1,478

461

406

1,014

526

139

930

9,200

2,919

6,281

5,933

665

183

77

720

330

3,958

3,700

2, 250

478

526

200

14

106

126

2,280

777

38

1,401

64

6,669

371

857

1,428

29

473

218

329

211

1,115

624

121

36J

528

6,724

1,768

614

4,178

164

367

64,911

5,405

5,266

139

1.520

263

146

535

461

115

1,983

16,182

2,076

134

1,361

973

891

449

442

505

1,171

961

317

214

424

576

3,084

2,069

557

458

1,398

710

232

1,155

10,590

3,234

7,356

6,580

778

279

140

801

347

4, 235

4,277

2, 635

535

587

243

22

107

148

2,487

842

53

1,528

64

7,479

413

958

1,662

32

574

230

391

253

1,253

647

144

376

546

8,108

3,570

662

3,696

180

300

1937

73,618

7,214

7,029

185

1,912

452

137

600

581

142

2,078

19,305

2,401

196

1,601

992

1,072

564

508

565

1,253

1,167

542

292

461

653

3,806

2,597

510

1,760

912

332

1,300

12,212

3,926

8,286

7,237

895

243

151

906

386

4,656

4,634

2,808

546

654

293

26

130

177

2,725

925

66

1,668

66

8,246

471

1,110

1,930

39

607

247

437

305

1,323

680

156

394

547

7,772

3,013

675

3,889

195

283

1938

67,581

5,907

5,741

166

1,470

271

114

458

523

104

1,993

15,006

2,252

223

1,094

917

852

430

422

573

1,137

1,007

491

204

403

503

2,479

1,600

438

441

1,247

661

263

700

11,943

3,779

8,164

7,676

846

159

220

922

383

5,146

4,052

2,370

499

658

206

30

120

169

2,717

947

65

1,642

63

7,907

456

1,024

1,718

34

599

259

426

266

1,330

666

164

409

556

8,524

3,505

698

4,121

200

386

72,753

5,933

5,761

172

1,582

343

126

501

482

130

2,323

17,925

2,269

297

1,261

1,028

1,001

494

507

556

1,213

1,202

434

278

424

663

3,377

2,267

591

519

1,490

852

396

1,184

12,453

3,830

8,623

7,920

882

165

168

926

390

5,389

4,642

2,737

515

739

280

44

131

196

2,863

1,005

76

1,717

65

8,276

481

1,049

1,866

34

261

434

288

1,381

692

181

415

556

8,523

3,414

719

4,185

205

313

n. e. c—Not elsewhere classified.

1. National income originating in each industry is the sum of factor costs incurred by the

industry in production. Hence, it is the net value added to production by the industry,

measured at factor costs. In the business sector of the economy, except government enterprises, it is equal to the excess of the market value of the industry's product and the subsidies

it receives over the sum of the following costs: purchases of goods and services from other

enterprises, indirect business tax and nontax liability, business transfer payments, and capital

consumption charges. In the other sectors of the economy (government, personal, and rest

of the world) and also in government enterprises, this value added in production (as measured

in the present series) can be described only as factor costs incurred. "National income

originating" is a more net concept of value-added than that used by the Bureau of the Census

in compiling the Census of Manufactures. "Value added by manufacture" is obtained in the

Census of Manufactures by deducting from the value of products only "the cost of materials,

supplies, containers, fuel, purchased electric energy, and contract work." National income

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
GROSS NATIONAL PRODUCT AND NATIONAL INCOME 131

Table 1-10.—National Income by Industry, 1941-57 1

[Millions of dollars]

1941

104,710

8,470

8,269

201

2,299

504

165

805

620

205

4,195

33,027

2,737

220

2,067

1,463

],691

907

784

1,030

1,363

1,940

826

489

617

1,070

7,165

5,076

1,200

889

3,844

1,893

2,262

2,350

17,254

5,228

12,026

9,172

1,097

109

225

918

444

6,379

6,300

3,778

582

1,021

432

77

145

265

3,324

1,135

106

2,011

72

9,806

584

1,286

2,188

57

779

350

513

368

1,575

763

264

439

640

10,500

5,027

808

4,388

277

363

1942

137,694

12,403

12,148

255

2,571

581

192

989

556

253

6,471

45,343

3,693

185

2,852

1,928

1,973

1,090

883

1,124

1,434

2,774

1,152

594

778

1,171

9, 593

6,895

1,491

1,207

5,395

2,474

6,214

2,009

20,312

6,195

14,117

10,649

1,188

78

364

1,021

468

7,530

8,598

5,568

904

1,183

425

113

317

288

3,669

1,367

109

2,121

72

10,981

674

1,548

2,201

112

826

419

652

388

1,806

793

385

461

716

16,332

10, 645

918

4,473

296

365

1943

170,310

14,143

13,864

279

2,741

498

213

1,133

646

251

5,460

58,149

4,395

189

3,014

2,418

2,089

1,138

951

1,257

1,739

3,349

1, 459

898

859

1,192

12, 589

9,068

1,945

1,576

5,917

3,347

12,105

1,333

23,831

6,911

16,920

11,569

1,410

173

283

1,101

488

8,114

10,784

6,971

1,218

1,308

595

151

129

412

3,934

1,547

139

2,169

79

12,295

877

1,893

2,107

159

915

610

830

436

1,988

814

344

503

819

27,037

20, 899

1.139

4,663

336

367

1944

182,639

14,483

14,152

331

2,891

403

239

1,263

757

229

4,135

60,124

4,951

283

2,965

2,705

2,170

1,142

1,028

1,348

2,029

3,350

1,326

1,019

884

1,134

12, 598

9,045

1,934

1,619

5,807

3,708

12, 446

1,401

25,745

7,640

18,105

12,197

1,661

178

273

1,087

529

8,469

11,245

6,899

1,293

1,354

857

175

145

522

4,062

1,652

175

2,152

83

13,618

983

2,012

2,360

134

1,055

701

883

507

2,341

874

320

532

916

33,716

27, 250

1,188

4,938

340

423

1945

181,248

14,889

14, 526

363

2,717

334

219

1,195

741

228

4,280

52,008

5,010

236

3,015

2,914

2,133

1,080

1,053

1,341

2,234

3,221

1,244

928

925

1,146

10, 679

7,389

1,686

1,604

5,084

3,051

7,730

1,117

27,997

8,242

19, 755

12,830

1,829

315

272

1,077

568

8,769

10,536

6,009

1,306

1,390

989

192

131

519

4,244

1,751

186

2,218

89

14,614

1,085

2,121

2,635

72

1,179

703

930

613

2,459

930

335

569

983

36,764

29,786

1,248

5,370

360

369

1946

180,879

18,652

18, 235

417

2,970

302

283

1,242

839

304

6,477

48,479

5,539

326

4,005

3,355

2,811

1,448

1,363

1,696

2,697

3,271

1,510

1,082

1,082

1,561

8,851

5,531

1,753

1,567

4,717

2,376

1,691

1,909

34,417

10, 393

24, 024

14,479

2,167

283

333

1,183

750

9,763

10,245

5,466

1,412

1,699

823

217

126

502

4,792

1,973

203

2,523

93

17,205

1,322

2,552

2,766

89

1,471

843

1,133

810

3,024

954

454

660

1,127

22,592

14, 545

1,448

6,177

422

571

1947

198,177

19,303

18, 836

467

4,191

515

300

1,815

1,178

383

8,401

58,717

5,803

364

4,657

3,383

3,455

1,938

1, 517

2,208

3,055

3,763

2,209

1,124

1,114

1,852

11,094

7,566

1,912

1,616

6,192

3,398

1,524

3,522

37,341

11,651

25,690

15,250

2,159

132

403

1,403

852

10,301

11,498

6,294

1,393

1,993

814

243

151

610

5,114

2,077

226

2,709

102

18,919

1,287

2,634

3, 272

114

1,634

938

1,054

794

3, 544

1,033

560

813

1,242

18,619

9,343

1,440

7,320

516

824

1948

223,487

21,902

21, 355

547

5,247

636

343

2,096

1,721

451

10,576

66,777

6,608

424

5,158

3,496

3,849

2,661

1,188

2,333

3,293

4,258

3,477

1,061

1,241

2,124

13, 029

5,918

4, 400

1,020

\, 691

6,884

3,630

1,868

4,044

41,453

13,005

28, 448

17,628

2,437

168

289

1,943

940

11,851

12,680

7,123

1.380

2,287

810

306

192

582

5,896

2,462

253

3,067

114

20,656

1,339

2,830

3,621

133

1,848

937

893

833

4, 072

1, 174

672

942

1,362

19,681

8,895

1,627

8,502

657

991

1949

217,690

16,897

16, 332

565

4,334

509

261

1,446

1,662

456

10,475

62,702

6,409

496

4,123

3,317

3,371

2, 219

1,152

2,152

3, 442

4,276

2,682

948

1,102

2,079

11,928

5, 402

3 974

997

1, 555

6,191

3,456

1,917

4,813

40,567

12,401

28,166

19,969

2,568

179

390

2,720

969

13,143

11,926

6,341

1,341

2,376

748

349

202

569

6,563

2,670

262

3, 514

117

21,333

1,354

2,898

3,887

146

1,872

877

879

815

4,182

1,253

680

1,019

1,471

21,919

9,966

1,806

9,422

725

1,005

1950

241,876

17,923

17,328

595

5,010

691

282

1,706

1,804

527

11,833

74,371

6,654

470

4, 545

3,414

4,236

2, 842

I 394

2,683

3,637

5,096

3,071

1,044

1,111

2,639

15. 399

7,153

5 106

1 245

1^895

7,246

4, 415

2,046

6,665

42,707

13, 682

29,025

21,789

2,904

278

461

2,254

1,138

14, 754

13,278

7,076

1. 336

2,819

748

434

256

609

7,198

2,962

316

3,794

126

23,089

1,385

3,006

4,557

169

2,097

930

830

825

4,544

1,339

731

1,088

1,588

23,490

10, 690

1,897

10,124

779

1,188

1951

279,313

20,493

19, 829

664

5,499

797

279

1,806

2,011

606

14,213

88_495

6,998

547

5,183

3,816

4,735

3,209

I 526

3,373

3,878

6,178

3,746

1,633

1,334

3,017

18, 968

9, 091

Q 236

1 602

2^ 039

9,869

5,476

3,346

6,398

47,187

15, 905

31, 282

23,575

3,319

309

601

2,481

1,270

15, 595

14,867

7,776

1,434

3,117

967

526

285

762

8,304

3. 339

389

4,430

146

25,063

1,461

3,149

4,882

168

2,365

1,046

853

865

4,946

1,449

948

1, 173

1,758

30,221

16,193

2,081

11,069

878

1,396

1952

292,155

19,532

18, 807

725

5,237

720

254

1,554

2,095

614

15,383

90,172

7,618

587

4,584

3,906

4,567

2,982

1, 585

3,120

4,130

5,909

3,335

1,700

1,338

2,831

18, 287

7,903

6, 553

1, 775

2^056

10, 667

6,303

4,856

6,434

48,951

16, 232

32,719

25,573

3,800

297

676

2,675

1,430

16, 695

15,382

7,913

1,474

3,380

931

593

296

795

9,208

3,701

430

4,913

164

26,928

1, 535

3,258

5,186

163

2,668

1,132

852

918

5,389

1,507

1,156

1,251

1,913

34,466

18,837

2, 379

12, 174

1,076

1,323

1953

305,573

17,498

16, 750

748

5,208

817

202

1,490

2,056

643

15,881

97,953

8,016

703

4,407

4,050

4,511

2,917

1, 594

3,317

4,483

6,269

3,761

1,716

1,344

3,138

21,065

9,393

7, 475

1, 959

2, 238

1954

301,794

16,922

16,128

794

4,923

766

161

1,133

2,182

681

16,043

91,057

7,944

680

3,789

3,866

4,278

2,752

1, 526

3,351

4,608

6,308

3,694

1,387

1,322

3,150

18, 546

7,686

6, 767

1, 940

2,153

10, 809

6,985

5,711

7,668

49,753

16, 551

33, 202

27,608

4,278

307

693

3,103

1,567

17,660

15,754

7,715

1,455

3,814

1,003

662

292

813

10,127

4,159

476

5, 311

181

29,201

1,566

3,395

5,937

159

2,974

1,176

815

1,032

5,906

1,595

1, 245

1,341

2,060

35,276

18, 509

2,367

13,246

1,154

1,314

9,733

6,261

5,721

6,419

50,649

16, 614

34, 035

29,312

4,363

451

664

3,372

1,725

18, 737

14,444

6,546

1,410

3,836

852

710

286

804

10,757

4,364

532

5, 661

200

30,214

1,585

3,468

5,995

166

3,172

1,182

895

1,103

5,971

1,745

1,286

1,447

2,199

35,856

17, 683

2 352

U, 620

1,201

1,617

1955

330,206

16,084

15, 234

850

5,609

990

133

1,313

2,410

763

17,358

104,490

8,826

696

4,320

4,129

4,995

3,233

1,762

3,725

5,069

7,486

4.042

1,704

1,368

3,792

22, 025

10,176

7,372

2,085

2,392

10,370

6,681

5,728

9,534

55,000

18, 729

36, 271

30,918

4, 586

491

812

3,409

1,826

19,794

15,781

7,116

1,411

4,301

987

800

286

880

11,677

4,838

629

6,014

196

33,740

1,657

3,652

6,960

184

3,611

1,310

926

1,187

6,997

1,900

1,474

1,571

2,311

37, 766

18, 240

2,521

15, 727

1,278

1,783

1956

349,356

16,138

15, 206

932

6,265

1,095

168

1,555

2,603

844

19,080

109,901

8,949

731

4, 402

4,443

5,113

3,198

1,915

4,011

5,455

7,799

4V378

1,881

1,437

4,031

23, 658

11,105

7,714

2,290

2,549

12,108

7,500

6,493

7,512

57,339

20,096

37, 243

32,134

5,041

<*70

814

3,202

1,945

20,662

16,766

7,486

1,444

4,628

1,044

909

299

956

12,484

5,251

690

6,341

202

36,959

1,731

3,856

7,840

208

4,167

1,413

887

1,261

7,547

1, 965

1,809

1,788

2,487

40,269

18,841

2,667

17, 439

1,322

2,021

1957

363,951

16,229

15, 280

949

6,191

847

171

1,609

2,783

781

19,648

112,517

9,119

802

4,120

4,398

4,635

2,721

1,914

3,872

5,671

8,172

4,063

1,911

1,458

3,957

24,186

11, 229

8,128

2,358

2,471

12, 298

8,344

7,432

8,079

59,622

20,929

38, 693

34,611

5,520

465

961

3,345

2,054

22,266

17,258

7,432

1,483

4,855

1,151

977

317

1,043

13,340

5,659

729

6,740

212

39,422

1,814

4,019

8,341

226

4,615

1,488

867

1,335

8,045

2,095

1,952

1,972

2,653

42,869

19, 427

2,830

19,197

1,415

2,244

Line

1(

1

1

1

1-

1

1(

r

i<

2(

2

2'

2,

%

2,

2(

2

%

2S

3(

3

3'

3

3

3<

3

3

3

3

4

4

4

4

4

4

4

4

4

4

51

5

5

5

5

5

5

5

5

5

6(

6

6

6

6

6

6

6

6!

6

7

7

7

7

7

7

7

7

7

7

8

8

8

8

by industrial origin is obtained statistically by aggregating the data presented in tables VI-l

and VI-5 and the industry detail underlying tables VI-4, VI-11, and VI-l2 together with the

rental income of persons (shown in table 1-12 and classified in the real estate industry). Footnotes to these tables are, therefore, relevant to table 1-10 also.

For information on the system of industrial classification used in the national income estimates, see pages 66-67 of the 1954 National Income supplement.

2. Owing to changes in the industrial classification of the underlying data, figures for 1948

and subsequent years in this and a number of other industries are not strictly comparable with

those shown here for 1947 and earlier years. Estimates for 1948 national income comparable

to those shown for 1947 are as follows: Lumber and furniture products, $3,954; Chemicals and

allied products, $4,427; Products of petroleum and coal, $3,290; Metals, metal products, and

miscellaneous, $12,546; Machinery, except electrical, $7,011; and Electrical machinery, $3,693,

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
132 NATIONAL INCOME AND PRODUCT TABLES

Table I—11.—NationaI Income by Industry Division, Seasonally Adjusted Quarterly Totals at Annual Rates, 1946—47

[Billions of dollars]

Line

1946

II III IV Year

1947

II III IV Year

All industries, total

Agriculture, forestry, and fisheries

Manufacturing

Durable-goods industries

Nondurable-goods industries

Wholesale and retail trade

Finance, insurance, and real estate

Transportation

Communications and public utilities

Services

Government and government enterprises

Other

169.6

16.5

40.4

17.3

23.1

31.9

13.9

9.4

5.4

16.2

27.1

176.6

17.4

48.4

23.8

24.7

33.6

14.4

10.2

3.9

17.0

22.3

9.3

185.2

20.2

50.1

27.0

23.2

35.8

14.6

10.7

5.0

17.6

20.7

10.6

191.9

20.5

54.9

27.8

27.2

36.2

15.1

10.6

5.0

18.0

20.2

11.3

180.9

18.7

48.5

23.9

24.6

34.4

14.5

10.2

4.8

17.2

22.6

10.0

193.1

21.0

55.7

28.6

27.0

36.4

15.0

10.4

4.7

18.3

19.5

12.2

194.5

17.5

58.4

31.9

26.5

36.5

14.9

11.4

4.8

18.8

19.0

13.1

198.4

19.0

59.1

30.9

28.2

37.2

15.2

11.9

5.4

19.1

17.8

13.8

206.5

19.8

61.6

32.8

28.8

39.2

15.9

12.3

5.5

19.4

18.2

14.6

198.2

19.3

58.7

31.0

27.7

37.3

15.2

11.5

5.1

18.9

18.6

13.4

Table I—11.—National Income by Industry Division, Seasonally Adjusted Quarterly Totals at Annual Rates, 1952—53

[Billions of dollars]

Line

1952

I

287.2

18.9

89. 6

53.5

36.0

47. 6

24.7

15. 6

9.1

26.1

33.5

22.1

II

288.0

19.8

87.9

52.1

35.7

49.0

25.3

14.9

8.9

26.6

34.4

21.4

I II

292.4

21.4

87.8

51.7

36.2

49.0

25.8

15.1

9.2

27.2

34.9

21.9

IV

300.6

18.0

95.2

58.4

36.8

50.2

26.4

15.9

9.6

27.8

35.1

22.4

Year

292.2

19.5

90.2

53.9

36.2

49.0

25.6

15.4

9.2

26.9

34.5

21.9

1953

I

306.3

17.8

100.1

61.8

38.3

49.8

26.9

15.9

9.9

28.4

35.2

22.2

II

308.7

17.4

100.6

61.9

38.7

50.1

27.6

16.0

10.1

29.1

35.5

22.3

I II

307.2

17.1

99.4

60.9

38.5

49.6

27.8

15.9

10.2

29.5

35.2

22.5

I V

300.1

17.6

91.8

55.0

36.8

49.5

28.1

15.2

10.3

29.8

35.2

22.6

Year

305.6

17.5

98.0

59.9

38.1

49.8

27.6

15.8

10.1

29.2

35.3

22.4

All industries, total

Agriculture, forestry, and fisheries

Manufacturing

Durable-goods industries

Nondurable-goods industries

Wholesale and retail trade

Finance, insurance, and real estate

Transportation

Communications and public utilities

Services

Government and government enterprises

Other

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
GROSS NATIONAL PRODUCT AND NATIONAL INCOME

Table 1-11.—National Income by Industry Division, Seasonally Adjusted Quarterly Totals at Annual Rates, 1948-51

[Billions of dollars]

133

1948

I

214.4

20.0

65.2

34.5

30.8

40.5

16.7

12.4

5.7

19.9

18.6

15.5

II

222.6

23.1

66.2

34.6

31.6

41.3

17.3

12.5

5.8

20.5

19.0

16.9

I II

227.4

23.0

67.3

35.7

31.6

41.9

18.0

12.9

5.9

21.1

20.1

17.3

IV

229.2

21.5

68.4

37.0

31.4

42.1

18.6

13.0

6.1

21.2

21.0

17.5

Year

223.5

21 9

66.8

35.4

31.3

41.5

17.6

12.7

5.9

20.7

19.7

16.8

1949

I

220.8

17.7

65.4

35.6

29.8

41.2

19.0

12.2

6. 3

21.3

21.5

16.2

II

217.4

17.0

62.2

33.6

28.6

40.9

19.8

12.1

6.5

21.2

21.7

16.1

I II

217.8

16.4

63.4

34.1

29.3

40.2

20.4

12.0

6.7

21..3

22.0

15.5

IV

214.8

16.6

59.8

31.4

28.4

40.0

20.7

11.5

6.7

21.6

22.5

15.5

Year

217.7

16.9

62.7

33.8

28.9

40.6

20.0

11.9

6.6

21.3

21.9

15.8

1950

I

222.1

17.2

64.0

35.1

28.9

41.0

20.8

11.9

0.8

22.2

22.4

15.8

II

233.6

17.0

70.7

40.1

30.5

41.9

21.5

12.6

7.1

22.8

22.5

17.5

I II

250.6

18.2

78.4

45.6

32.8

44.8

22.2

13.8

7.3

23.4

23.6

18.9

IV

261.1

19.3

84.6

49.7

34.9

43.1

22.7

14.8

7.6

23.9

25.5

19.6

Year

241.9

17.9

74.4

42.6

31.7

42.7

21.8

13.3

7.2

23.1

23.5

18.0

1951

I

270.8

19.7

85.7

50.4

35.3

47.8

22.7

14.5

7.9

24.6

27.7

20.2

II

278.2

20.4

89.2

52.0

37.2

46.6

23.2

14.9

8.1

24.9

29.5

21.4

III

282.0

20.6

89.5

51.7

37.8

47.0

23.9

14.8

8.4

25.2

31.5

21.1

IV

286.0

21.2

89.5

53.1

36.4

47.4

24.5

15.5

8.8

25.5

32.2

21.5

Year

279.3

20.5

88.5

51.8

36.7

47.2

23.6

14.9

8.3

25. 1

30.2

21.1

Line

1

2

3

4

5

6

7

8

9

10

11

12

Table 1-11.—National Income by Industry Division, Seasonally Adjusted Quarterly Totals at Annual Rates, 1954-57

[Billions of dollars]

1954

I

299.3

17.8

91.3

54.8

36.5

49.3

28.6

14.5

10.5

29.6

35.3

22.4

II

299.4

16.4

90.4

53.8

36.6

50.5

29.2

14.3

10.7

29.8

35.7

22.4

III

300.9

17. 2

89.3

52.7

36.6

50.9

29 5

14.4

10.8

30.3

36.1

22.3

IV

307.5

16.3

93.1

55.1

38.0

51.8

29.9

14.6

11.0

31.1

36.4

23.2

Year

301. S

16.9

91.1

54.1

36.9

50.6

29.3

14.4

10.8

30.2

35.9

22.6

1955

I

316.9

16.0

98.0

59.0

38.9

53.5

30.4

15.2

11.3

32.1

36.8

23.7

II

327.3

16.4

103.2

62.1

41.1

53.9

30.8

15.6

11.7

33.3

37.9

24.6

I II

335.0

16.0

106.8

64.6

42.2

55.9

31.1

16.1

11.7

34.4

38.0

25.2

IV

341.4

15. 9

110. 2

66.9

43.2

56. 5

31.4

16.2

12.1

35.2

38.4

25.5

Year

330.2

16.1

104. 5

63.1

41.4

55.0

30.9

15.8

11.7

33.7

37.8

24.8

I

312.2

15.7

108. 0

65. 0

43.0

56.5

31.0

16.6

12.2

36.0

39.3

26.4

II

346.2

15 8

108.4

65. 2

43.2

56.6

31.9

16.8

12.4

36.6

40.0

27.7

1956

I II

350.8

10. 5

108.9

65. 0

43. 9

58.2

32.3

16. 6

12.7

37.3

40.7

27.7

IV

357.9

16.6

114.2

70.3

43.8

58. 0

32.7

17.0

12. 0

38.0

41.1

27. f>

Year

349.4

16.1

109.9

66.4

43.5

57.3

32.1

16.8

12.5

37.0

40.3

27.1

i

361.5

16.1

114.1

70.4

43.6

59.2

33.5

17.3

13.1

38.5

42.1

27.7

II

364.1

16.2

113. 0

69.2

43.7

59.6

34.2

17.4

13.3

39.3

42.6

28.5

1957

I II

368.7

16.5

113.9

69.8

44. 1

60.5

35.2

17.6

13.4

39.9

43.3

28.5

IV

361.5

16.1

109.2

66.3

42.9

59.1

35.6

16.8

13.6

40.0

43.4

27.7

Year

364.0

16.2

112. 5

68.9

43.6

59.6

34.6

17.3

13.3

39.4

42.9

28.1

Line

1

2

3

4

5

6

7

8

9

10

11

12

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
134 NATIONAL INCOME AND PRODUCT TABLES

Table 1-12.—National Income and Gross National Product by Legal Form of Organization, 1929-40

[Millions of dollars]

Line

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

5:

53

54

55

56

57

58

59

National income

ncome originating in business, total..

Corporate business

Compensation of employees

Wages and salaries

Compensation of corporate officers. _.

Other wages and salaries

Supplements to wages and salaries

Corporate profits and inventory valuation

adjustment.

Profits before tax

Profits tax liability

Profits after tax

Inventory valuation adjustment

Net interest

Sole proprietorships and partnerships.

Compensation of employees

Wages and salaries

Supplements to wages and salariesProprietors' income

Business and professional

Income of unincorporated enterprises.

Inventory valuation adjustment

Farm

Net interest^

Other private business

 2

_.

Compensation of employees

Wages and salaries

Supplements to wages and salariesProprietors' income—business and professionals

Rental income of persons .

Net interest

Government enterprises

Compensation of employees

Wages and salaries

Supplements to wages and salariesIncome originating in general government

Compensation of employees

Wages and salaries

Supplements to wages and salaries _.

Income originating in households and institutions

 4

__

Compensation of employees

Wages and salaries

Supplements to wages and salaries

Net interest5

Income originating in the rest of the worldWages and salaries

 6

Corporate profits after tax i

Net interest

Gross national product..

Business

Income originating in business (line 2 above)

Other

Indirect business tax and nontax liability

Business transfer payments

Corporate gifts to nonprofit institutions...

Consumer bad debts

Other

Statistical discrepancy

Less: Subsidies minus current surplus of government enterprises.

Capital consumption allowances

General government (line 36 above)

Households and institutions (line 40 above)

Rest of the world (line 45 above)

1929

87,814

78,179

45,224

33,739

33,307

3,337

29,970

432

9,396

1,369

8,027

472

1,617

23,941

8,596

8,533

63

14,713

8,745

8,603

142

5,968

632

8,256

793

792

1

46

5,425

1,992

758

758

745

13

4,335

4,335

4,192

143

4,490

2,863

2,853

10

1,627

810

1

232

577

104,436

94,801

78,179

16, 622

7,003

587

3:

452

103

268

-147

8,617

4,335

4,490

810

75,729

66,814

38,490

30,303

29,886

3,139

26, 747

417

6,445

3,185

842

2,343

3,260

1,742

20,052

7,794

7,729

65

11,499

7,369

6,614

755

4,130

759

7,501

778

777

1

41

4,778

1,904

771

771

757

14

4,545

4,545

4,396

149

3,624

2,652

2, 641

11

972

746

1

137

608

91,105

82,190

66, 814

15,376

7,155

534

35

390

109

-977

-123

8,541

4,545

3,624

746

1931

59,708

51,464

28,328

24,888

24,508

2,698

21,810

380

1,638

-776

498

-1,274

2,414

1,802

15,912

6,425

6,365

60

8,710

5,557

4,946

611

3,153

777

6,456

722

721

1

24

3,761

1,949

768

768

754

14

4,658

4,658

4,503

155

3,039

2, 278

2, 267

11

761

547

1

- 4

550

76,271

68,027

51, 464

16, 563

6, 858

6411

40

497

112

84(1

-4(1

8,16(i

4,658

3,039

547

1932

42,547

35,216

18,426

18,603

18. 274

2,133

16,141

329

-1,936

-2,983

385

-3,368

1,047

1,759

10,838

4,821

4,770

51

5,303

3,371

3,076

295

1,932

714

5,247

608

607

1

13

2,713

1,913

705

705

691

14

4,445

4,445

4,274

171

2,493

1,871

1,860

11

622

393

1

- 3 4

426

58,466

51,135

35, 216

15, 919

6,768

737

31

598

108

754

- 4 J

7,615

4,445

2,493

393

1933

40,159

32,903

17,345

17,620

17,318

1,995

15,323

302

-1,990

153

521

-368

-2,143

1,715

10,564

4,351

4,307

44

5,585

3,152

3,677

-525

2,433

628

4,363

564

563

1

14

1,971

1,814

631

631

617

14

4,695

4,695

4,524

171

2,238

1,677

1,667

10

561

323

1

- 2

324

55,964

48,708

32,903

15, 805

7,055

659

27

530

102

948

18

7,161

4,695

2,238

323

1934

48,959

40,697

23,380

20,642

20,305

2,173

18,132

337

1,031

1,656

744

912

-625

1,707

12, 515

4,966

4,920

46

6,996

4,550

4,604

- 5 4

2,446

553

4,109

613

612

1

14

1,694

1,788

693

693

679

14

5,578

5,578

5,396

182

2,381

1,802

1,792

10

579

303

1

60

242

64,975

56,713

40,

16,016

7,815

641

27

508

106

731

283

7,112

5,578

2,381

303

1935

57,057

48,253

27,017

22.632

22,266

2,345

19,921

366

2,759

2,986

951

2,035

-227

1,626

16,330

5,449

5,401

48

10,365

5,329

5,379

- 5 0

5,036

516

4,128

652

651

1

22

1,661

1,793

778

778

760

18

5,946

5,946

5,740

206

2,491

1,882

1,871

11

609

367

1

159

207

72,502

63,698

48, 253

15, 445

8,190

594

28

458

108

-171

403

7,235

5,946

2,491

367

64,911

54,565

32,273

25,818

25,185

2,713

22,472

633

4,898

5,636

1,409

4,227

-738

1,557

17,155

6,233

6,141

92

10,448

6,496

6,616

-120

3,952

474

4,295

706

699

7

34

1,776

1,779

842

842

818

24

7,266

7,266

7,047

219

2,780

2,044

2,029

15

736

300

1

104

195

82,743

72,397

54, 565

17,832

8,663

594

30

461

103

1,118

39

7,496

7,266

2,780

300

1937

73,618

63,332

37, 587

30,042

28,754

2,809

25,945

1,288

6,082

6,113

1,502

4,611

-31

1,463

20,175

7,062

6,847

215

12,649

7,031

7,060

-29

5,618

464

4,700

785

764

21

42

2,081

1,792

870

870

838

32

6,902

6,902

6,654

248

3,101

2,272

2,249

23

829

283

1

122

160

90,780

80,494

63,332

17,162

9,15'

56'

33

428

106

-248

60

7, 746

6,902

3,101

283

1938

67,581

56,640

32,256

26,758

25,348

2,591

22,757

1,410

4,016

3,053

1,029

2,024

963

1,482

18,359

6,776

6,523

253

11,097

6,762

6,541

221

4,335

486

5,127

783

755

28

31

2,560

1,753

860

38

7,626

7,626

7,363

263

2,929

2,152

2,126

26

777

386

1

247

138

85,227

74,286

56, 640

17, 646

9,154

429

27

296

106

456

176

7,783

7,626

2,929

386

1939

72,753

61,748

36,185

29,290

27,771

2,697

25,074

1,519

5,505

6,219

1,441

4,778

-714

1,390

19,285

7,203

6,936

267

11,580

7,263

7,429

-166

4,317

502

5,354

814

785

29

30

2,742

1,768

924

924

884

40

7,599

7,599

7,313

286

3,093

2,276

2,250

26

817

313

2

184

127

91,095

80,090

61. 748

18,342

9,365

451

31

316

104

1,173

485

7,838

7,599

3,093

313

1. This series is net only of imputed interest received, and of cash interest received by firms

engaged in lending as a principal activity; cash interest received by other proprietors is considered to be received in the proprietors' personal capacity.

2. Includes all mutual financial institutions; producers' and consumers' cooperatives; nonprofit organizations, such as trade associations furnishing services to business; individually

owned property including owner-occupied homes; and miscellaneous forms of business organization.

3. Estimated patronage refunds and stock dividends paid by farmers' cooperatives and

profits of mutual nonlife insurance companies.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
GROSS NATIONAL PRODUCT AND NATIONAL INCOME 135

Table 1-12.—National Income and Gross National Product by Legal Form of Organization, 1941-57

[Millions of dollars]

1941

104,710

91,373

56,437

41,051

39,070

3,472

35,598

1,981

14, 280

16, 751

7,610

9,141

- 2 , 471

1,106

27,632

9,783

9,434

349

17,341

10,837

11,452

-615

6,504

508

6,219

916

887

29

60

3,465

1,778

1,085

1,085

1,040

45

9,415

9,415

9,146

269

3,559

2,533

2,503

30

1,026

363

6

231

126

125,822

112,485

91,373

21,112

11,296

502

58

332

112

375

102

9,041

9,415

3,559

363

1942

137,694

118,497

72,904

52,293

49,965

3,691

46, 274

2,328

19,453

20, 657

11,415

9,242

-1,204

1,158

37,005

12, 732

12,311

421

23,811

13,803

14,170

-367

10,008

462

7,374

986

958

28

96

4,547

1,745

1,214

1.214

1,167

47

15,118

15,118

14,809

309

3,714

2,918

2,889

29

796

365

10

225

130

159,133

139,936

118,497

21,439

11, 769

495

98

283

114

-830

150

10,155

15,118

3,714

365

1943

170,310

140,564

88,087

63, 595

60,761

3,745

57,016

2,834

23, 543

24,316

14,074

10, 242

-773

949

43,045

14,648

14, 203

445

28,038

16,674

16,830

-156

11,364

359

7,957

1,053

1,025

28

149

5,097

1,658

1,475

1,475

1,427

48

25,562

25, 562

25,190

372

3,817

3,240

3,208

32

577

367

14

238

115

192,513

162,767

140,564

22,203

12, 735

505

159

246

100

-1,720

183

10,866

25,562

3,817

367

1944

182,639

145,771

90,110

66, 525

63,346

3,759

59,587

3,179

22,740

23,027

12,949

10,078

-287

845

45,938

16,204

15, 733

471

29,424

17,899

17,968

- 69

11, 525

310

8,195

1,110

1,080

30

141

5,413

1,531

1,528

1,528

1,477

51

32,188

32,188

31,491

697

4,257

3,719

3,684

35

538

423

12

293

118

211,393

174,525

145, 771

28,754

14,127

506

234

165

107

2,766

652

12,007

32,188

4,257

423

1945

181,248

141,053

82,414

63,485

60,316

4,118

56,198

3,169

18,185

18, 749

10, 689

8,060

-564

744

48,629

17, 640

17,136

504

30, 713

18,889

18,995

-106

11,824

276

8,402

1,164

1,135

29

122

5,634

1,482

1,608

1,608

1,550

58

35,156

35,156

33,352

1,804

4,670

4,117

4,077

40

553

369

11

228

130

213,558

173,363

141,053

32,310

15, 522

532

266

150

116

4,467

760

12,549

35,156

4,670

369

1946

180,879

154,453

86,302

68,969

65, 748

5,143

60,605

3,221

16,863

22,126

9,111

13,015

-5,263

470

56,963

20,303

19, 757

546

36,393

21,141

22, 846

- 1, 705

15, 252

267

9,318

1,395

1.363

32

180

6,208

1,535

1,870

1,870

1,808

62

20,722

20, 722

18,770

1,952

5,133

4,421

4,373

48

712

571

17

425

129

210,663

184,237

154,453

29,784

17,313

557

214

193

150

2,088

868

10, 694

20,722

5,133

571

1947

198,177

174,625

104, 710

81.168

77, 254

6,026

71, 228

3,914

22,937

28,836

11, 283

17, 553

- 5 , 899

605

57,978

22,326

21, 718

608

35,303

19, 759

21,230

-1,471

15,544

349

9,981

1,558

1,524

34

189

6,510

1,724

1,956

1,956

1,894

62

16,663

16,663

15,435

1,228

6,065

5,069

5,016

53

996

824

17

689

118

234,289

210,737

174, 625

36,112

18,641

674

241

258

175

3,541

-226

13,030

16,663

6,065

824

1948

223,487

198,246

120,404

90,049

85,906

6,733

79,173

4,143

30,012

32,164

12,483

19,681

-2,152

343

64, 253

23,942

23,358

584

39, 886

22,097

22,507

-410

17, 789

425

11,305

1,763

1,717

46

308

7,297

1,937

2,284

2,284

2,213

71

17,397

17,397

16, 542

855

6,853

5,518

5,462

56

1,335

991

16

836

139

259,426

234,185

198, 246

35, 939

20,405

739

239

298

202

-847

-171

15,471

17,397

6,853

991

1949

217,690

189,887

115,527

87, 729

83,362

6,743

76, 619

4,367

27,394

25, 538

10,375

15,163

1,856

404

58,863

23,506

22,895

611

34, 870

21,944

21,481

463

12, 926

487

12,966

1,869

1,817

52

713

8,274

2,110

2,531

2, 531

2,450

81

19,388

19,388

18,035

1,353

7,410

5,795

5,735

60

1,615

1,005

16

832

157

258,054

230,251

189,887

40,364

21,637

781

223

353

205

510

-162

17,274

19,388

7,410

1,005

1950

241,876

211,482

132,302

97, 404

91, 736

7,607

84,129

5,668

34,663

39,628

17, 865

21, 763

-4,965

235

62,684

24,875

24,123

752

37, 277

23,277

24,371

-1,094

14,000

532

13,820

2,084

2,018

66

264

9,013

2,459

2,676

2,676

2,580

96

20,814

20,814

19,672

1,142

8,392

6,319

6,244

75

2,073

1,188

18

1,000

170

284,599

254,205

211, 482

42, 723

23, 747

843

253

328

262

-734

198

19,065

20,814

8,392

1,188

1951

279,313

241,557

153,309

113, 296

106, 227

8,122

98,105

7,069

39,739

40,938

22,447

18,491

-1,199

274

70,238

27, 714

26,837

877

41,874

25, 540

25,867

-327

16,334

650

15,051

2,290

2,212

78

455

9,431

2,875

2,959

2,959

2,867

92

27,262

27, 262

25,973

1,289

9,098

6,786

6,652

134

2,312

1,396

20

1,215

161

328,975

291,219

241, 557

49,662

25.647

985

343

328

314

1,247

187

21,970

27,262

9,098

1,396

1952

292,155

250,060

158, 502

121, 609

114,089

8,338

105, 751

7,520

36, 551

35, 570

19,459

16,111

981

342

71,933

29,354

28,460

894

41,877

26, 540

26,339

201

15,337

702

16,170

2,465

2,369

96

356

10,154

3,195

3,455

3,455

3,352

103

31,011

31,011

29,588

1,423

9,761

7,093

6,952

141

2,668

1,323

25

1,121

177

346,999

304,904

250,060

54,844

28,140

1,169

399

398

372

1,374

-154

24,007

31,011

9,761

1,323

1953

305,573

261,619

168,958

132,411

124, 240

8,676

115, 564

8,171

36,188

37,185

20, 222

16,963

-997

359

71,859

30,883

29,959

924

40,247

26,969

27,137

-168

13, 278

729

17, 281

2,683

2,581

102

476

10,528

3, 594

3,521

3,521

3,436

85

31,755

31, 755

30,417

1,338

10,885

7,539

7,377

162

3,346

1,314

20

1,126

168

365,385

321,431

261, 619

59,812

30, 203

1,369

494

468

407

1,283

-431

26, 526

31,755

10,885

1,314

1954

301,794

256,538

163, 257

130,420

121,896

9,006

112, 890

8,524

32,330

32, 648

17,220

15,428

-318

507

71,353

30, 703

29, 693

1,010

39,908

27, 217

27, 266

- 49

12, 691

742

18,375

2,836

2,718

118

534

10,869

4,136

3,553

3,553

3,490

63

32,303

32,303

30,880

1,423

11,336

7,758

7,560

198

3,578

1,617

22

1,413

182

363,112

317,856

256, 538

61, 318

30,151

1,262

314

521

427

853

-243

28,809

32,303

11,336

1,617

1955

330,206

281,760

184, 209

142,184

132, 505

10.356

122,149

9,679

41, 568

43,304

21, 827

21, 477

-1,736

457

74, 722

32, 270

31,166

1,104

41,666

29,899

30,097

-198

11, 767

786

19,030

3,041

2,905

136

483

10,698

4,808

3,799

3,799

3,692

107

33,967

33,967

32. 262

1,705

12,696

8,570

8,351

219

4,126

1,783

21

1,558

204

397,469

349,023

281,760

67, 263

32,865

1,457

415

674

468

988

33

31,986

33,967

12,696

1,783

1956

349,356

297,010

195,167

154,017

143,393

na

na

10,624

41,172

43, 732

22,422

21,310

-2,560

-22

77, 729

34,898

33,670

1,228

42.034

30, 402

30, 899

-497

11, 632

797

20,125

3,313

3,161

152

401

10,887

5,524

3,989

3,989

3,817

172

36,280

36, 280

34, 208

2,072

14,045

9,281

9,034

247

4,764

2,021

21

1,761

239

419,214

366,868

297,010

69,858

35,631

1,526

415

574

537

-935

1,045

34,681

36,280

14,045

2,021

1957

363,951

308,045

202,057

161, 949

150,024

na

na

11,925

39,953

41, 501

21,649

19, 852

-1,548

155

79,686

36,382

35,013

1,369

42, 524

30,926

31, 223

-297

11. 598

780

22,057

3,550

3,377

173

477

11,837

6,193

4,245

4,245

4,017

228

38,624

38,624

36,082

2,542

15,038

9,867

9,587

280

5,171

2,244

20

1,925

299

440,328

384,422

308,045

76, 377

37,644

1,595

415

574

606

725

1,330

37.743

38,624

15,038

2,244

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

4. Includes private households; and religious organizations, social and athletic clubs, labor

organizations, nonprofit schools and hospitals, charitable and welfare organizations, and all

other nonprofit organizations furnishing services to individuals.

5. This series measures gross interest paid; it is termed "net interest" only because it is a

component of that distributive share.

6. Pay of permanent United States residents employed in the United States by foreign

governments and international organizations.

7. Measures net inflow from abroad of dividends and branch profits; the net inflow from

abroad of undistributed profits and corporate profits tax liability is excluded from this line

and from the national income aggregate.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
136 NATIONAL INCOME AND PRODUCT TABLES

Table I—13.—Gross National Product by Legal Form of Organization, in Constant Dollars, 1929—40 1

IBillions of 1954 dollars]

Line

Gross national product..

Business

General government

Households and institutions..

Rest of the world

1929

181.8

159.5

10.3

10.4

1.5

1930

164.5

143.2

10.8

8.8

1.7

1931

153.0

132.3

11.0

8.2

1.5

1932

130.1

110.3

10.8

7.7

1.3

1933

126.6

106.3

11.5

7.5

1.3

1934

138.5

116.3

13.3

7.9

1.0

1935

152.9

129.5

14.2

8.0

1.2

1936

173.3

147.2

16.7

8.4

1.0

1937

183.5

158.2

15.7

8.7

.9

1938

175.1

148.4

17.0

8.4

1.2

1939

189.3

162.4

17.2

8.7

1.0

1940

205.8

177.9

17.7

9.2

1.0

1. Footnotes to table 1-12 are relevant to this table also. Implicit price deflators are shown in table VII-8.

Table 1-14.—National Income by Corporate and Noncorporate Form of Organization, Seasonally Adjusted Quarterly Totals at Annual

Rates, 1946-47

[Billions of dollars]

Line

National income

Income originating in corporate businessCompensation of employees

Wages and salaries

Supplements to wages and salaries _

Corporate profits and inventory valuation adjustment '

Profits before tax

 l

Profits tax liability

Profits after tax

 !

Inventory valuation adjustment

Net interest

Income originating outside corporate business.

I

169.6

75.9

62.3

59.3

3.0

13.2

14.4

6.0

8.4

-1. 2

.4

93.8

II

176.6

83.8

67.2

64.1

3.1

16.1

18.9

7.8

11.1

-2. 8

.5

92.8

1946

III

185.2

89.8

71.8

68. 5

3. 3

17. 5

25. 6

10.5

15.1

- 8 . 1

.5

95.4

IV

191.9

95.7

74.6

71.1

3.5

20.7

29.6

12.2

17.4

-8. 9

.5

96.1

Year

180.9

86.3

69.0

65.7

3.2

16.9

22.1

9.1

13.0

-5. 3

.5

94.6

1947

I

193.1

98.3

78.3

74.5

3.7

19.5

29.2

11.4

17.8

-9. 7

.5

94.7

II

194.5

103.3

79.6

75.7

3.8

23.1

27.8

10.9

16.9

-4. 7

.6

91.2

III

198.4

106.3

81.8

77.8

4.0

23.8

27.9

10.9

17.0

-4. 0

.6

92.2

IV

206.5

110.9

85.1

80.9

4.1

25.2

30.4

11.9

18.5

-5. 2

.7

95.5

Year

198.2

104.7

81.2

77.3

3.9

22.9

28.8

11.3

17.6

-5. 9

.6

93.5

1. Excludes corporate profits originatin g in the rest of the world sector.

Table 1-14.—National Income by Corporate and Noncorporate Form of Organization, Seasonally Adjusted Quarterly Totals at Annual

Rates, 1952-53

[Billions of dollars]

Line

National income

Income originating in corporate business,.-

Compensation of employees

Wages and salaries

Supplements to wages and salaries.

s

9

10

11

12 ] Income originating outside corporate business

Corporate profits and inventory valuation adjustment

 l

Profits before tax '

Profits tax liability

Profits after tax i .

Inventory valuation adjustment

Net interest ..

1952

I

287.2

157.1

118.8

111. 4

7. 4

38.0

36.7

20.1

16.6

1.3

.3

130.2

II

288.0

155.1

119.2

111.8

7.4

35.5

34.4

18.8

15.5

1.2

.3

133.0

III

292.4

156.2

121.0

113.4

7.5

34.9

34.2

18.7

15.4

.7

.3

136.2

IV

300.6

165.7

127.5

119.7

7.8

37.8

37.1

20.2

16.8

.8

. 3

134.9

Year

292.2

158.5

121.6

114.1

7.5

36.6

35.6

19.5

16.1

1.0

. 3

133.7

I

306.3

170.5

130. 8

122. 8

8.0

39.3

39.8

21.6

18.2

- . 4

. 3

135.8

II

308.7

172.2

133.2

125.1

8.1

38.6

40.2

21.9

18.4

-1. 6

. 3

136.5

1953

III

307.2

170.5

133.7

125.4

8.3

36.5

38.5

20.9

17.6

-2. 0

.4

136.7

IV

300.1

162.7

131.9

123.7

8.3

30.3

30.3

16.6

13.7

.0

.4

137.5

Year

305.6

169.0

132.4

124.2

8.2

36.2

37.2

20.2

17.0

-1. 0

.4

136.6

1. Excludes corporate profits originating in the rest of the world sector.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
GROSS NATIONAL PRODUCT AND NATIONAL INCOME 137

Table 1-13.—Gross National Product by Legal Form of Organization, in Constant Dollars, 1941-571

[Billions of 1954 dollars]

1941

238.1

205.8

22.0

9.2

1.0

1942

266.9

225.1

32.1

8.8

. 9

1943

2%. 7

237.8

50.3

7.8

.8

1944

317.9

251.2

58.1

7.7

.9

1945

314.0

248.6

57.0

7.6

.8

1946

282.5

244.1

29.9

7.6

1.0

1947

282.3

250.3

22.8

8.2

1.1

1948

293.1

260.4

22.8

8.7

1.2

1949

292.7

258.2

23.9

9.2

1.3

1950

318.1

281.8

24.8

10.1

1.4

1951

341.8

299.5

30.8

10.3

1.3

1952

353.5

308.7

33.2

10.4

1.3

1953

369.0

323.7

32.8

11.1

1.4

1954

363.1

317.9

32.3

11.3

1.6

1955

392.7

346.2

32.2

12.5

1.8

1956

402.2

354.1

32.8

13.4

2.0

1957

407.0

357.7

33.2

13.9

2.2

Line

1

2

3

4

5

Table 1-14.—National Income by Corporate and Noncorporate Form of Organization, Seasonally Adjusted Quarterly Totals at Annual

Rates, 1948-51

[Billions of dollars]

I

214.4

116.7

87.5

83.4

4.1

28.8

31.7

12.3

19.4

-2. 9

.4

97.8

II

222.6

119.5

89.2

85.1

4.1

30.0

32.9

12.8

20.1

-2. 9

.3

103.1

1948

III

227.4

121.8

91.7

87.6

4.2

29.7

32.5

12.6

19.9

-2. 8

.3

105.6

IV

229.2

123.6

91.8

87.6

4.2

31.5

31.5

12.3

19.3

- . 1

. 3

105.6

Year

223.5

120.4

90.0

85.9

4.1

30.0

32.2

12.5

19.7

-2. 2

.3

103.1

1949

I

220.8

118.8

89.7

85.5

4.2

28.8

27.4

11.1

16.3

1.4

.3

102.0

II

217.4

115.3

88.2

83.9

4.3

26.7

23.8

9.7

14.1

2.8

.4

102.1

III

217.8

115.9

86.8

82.4

4.4

28.7

25.7

10.5

15.3

3.0

.4

101.9

IV

214.8

112.1

86.2

81.7

4.5

25.4

25.2

10.2

15.0

.2

.4

102.7

Year

217.7

115.5

87.7

83.4

4.4

27.4

25.5

10.4

15.2

1.9

.4

102.2

1950

I

222.1

118.1

89.4

84.3

5.1

28.5

29.2

13.2

15.9

- . 7

.2

104.0

II

233.6

127.3

94.5

89.0

5.4

32. 6

36.0

16.2

19.8

-3. 3

.2

106.3

III

250.6

138.6

100.4

94.5

5.9

38.0

45.3

20.4

24.9

-7. 3

. 2

111.9

IV

261.1

145.1

105.3

99.1

6.2

39.5

48.1

21.6

26.5

-8. 5

.2

116.0

Year

241.9

132.3

97.4

91.7

5.7

34.7

39.6

17.9

21.8

-5. 0

. 2

109.6

1951

I

270.8

149.8

110.2

103.4

6.8

39.4

48.1

26.2

21.9

-8.7

. 3

121.0

II

278.2

153.5

113.3

106.3

7.0

39.9

40.9

22.4

18.5

-1.0

. 3

124.7

III

282.0

154.2

113.9

106.8

7.1

40.0

36.5

20.1

16.4

3.5

. 3

127.8

IV

286.0

155.7

115.7

108.4

7.3

39.7

38.2

21.1

17.1

1.5

. 3

130.3

Year

279.3

153.3

113.3

106.2

7.1

39.7

40.9

22.4

18.5

-1.2

. 3

126.0

Line

1

2

3

4

5

6

7

8

9

10

11

12

Table 1-14.—National Income by Corporate and Noncorporate Form of Organization, Seasonally Adjusted Quarterly Totals at Annual

Rates, 1954-57

[Billions of dollars]

I

2J9.3

162.2

130.5

122.0

8.5

31.2

31.2

16.5

14.8

.0

! • •

1 137.2

II

299.4

162.3

129.8

121.4

8.4

32.0

32.0

16.9

15.2

.0

.5

137.1

1954

I II

300.9

161.6

129.4

120.9

8.5

31.7

32.4

17.1

15.3

n

.5

139.3

IV

307.5

167.0

132.0

123.3

8.7

34.4

35.0

18.5

16.5

- . 5

.5

140.5

Year

301.8

163.3

130.4

121.9

8.5

32.3

32.6

17.2

15.4

- . 3

.5

138.5

1955

I

316.9

175.1

135.9

126.7

9.1

38.8

39.9

20.2

19.7

-1. 1

.4

141.8

II

327.3

181.7

140.7

131.2

9.5

40.5

41.4

20.8

20.5

- . 9

. 5

145.7

III

335.0

187.6

144.3

134.3

10.0

42.9

45.1

22.7

22.4

-2. 2

.5

147.4

IV

341.4

192.5

147.9

137.7

10.2

44. 1

46.9

23.6

23.2

-2. 8

.5

148.9

Year

330.2

184.2

142. 2

132.5

9.7

41.6

43.3

21.8

21.5

-1. 7

.5

146.0

I

342.2

191.6

150.0

139.8

10.2

41.6

44.5

22.8

21.7

-2. 8

.0

150.7

II

346.2

193.1

153.3

142.9

10.4

39.9

43. 1

22.1

21.0

-3. 2

.0

153.0

1956

I II

350.8

195.4

154.4

143. 6

10.8

41.0

42.5

21.8

20.7

-1. 5

.0

155.4

IV

357.9

200.6

158.4

147.3

11.1

42.2

44.9

23.0

21.9

-2. 7

.0

157.4

Year

349.4

195.2

154.0

143.4

10.6

41.2

43.7

22.4

21.3

-2. 6

.0

154.2

I

361.5

202.6

160. 5

148.9

11.6

41.9

44.3

23.0

21.3

-2. 4

.1

3159.0

II

364.1

202.5

162.4

150.6

11.9

39.9

41.5

21.7

19.8

-1. 5

.2

161.6

1957

I II

368.7

204.8

163.6

151.4

12.1

41.1

42.1

22.0

20.1

-1. 1

.2

163.9

IV

361.5

198.4

161.3

149.2

12.1

37.0

38.1

19.9

18.2

-1. 1

.2

163.1

Year

364.0

202.1

161.9

150.0

11.9

40.0

41.5

21.6

19.9

-1. 5

.2

161.9

Line

1

2

3

4

5

6

7

8

9

10

11

12

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
138 NATIONAL INCOME AND PRODUCT TABLES

Table 1-15.—Farm and Nonfarm Business Gross Product, in Current and Constant Dollars, 1929-40 1

Line

1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940

[Millions of current dollars]

Business gross product..

Farm

Nonfarm

94,801

9,817

84,984

82,190

7,733

74,457

68,027

6,192

61,835

51,135

4,448

46,687

48,708

4,588

44,120

56,713

4,331

52,382

63,698

6,944

56,754

72,397

6,263

66,134

80,494

8,089

72,405

74,286

6,726

67,560

80,090

6,498

73, 592

89,132

6,843

82,289

[Billions of 1954 dollars]

Business gross product..

Farm

Nonfarm

159.5

16.5

143.0

143.2

15.1

128.1

132.3

17.6

114.6

110.3

16.6

93.8

106.3

16.3

89.9

116.3

13.5

102.7

129.5

16.5

113.0

147.2

14.1

133.1

158.2

17.6

140.5

148.4

17.8

130.6

162.4

17.8

144.7

177.9

17.5

160.4

1. Footnotes to table 1-12 are relevant to this table also. For details on farm gross product, see tables VII-9 and VII-10.

Table 1-16.—Gross National Product Originating in General Government, Farms, and All Other Industries, in Current and Constant

Dollars, 1909-14

[Billions of dollars]

Line

Current Dollars

Gross national product...

General government..

Farms

All other industries i.

1954 Dollars

Gross national product...

General governmentFarms

All other industries L

1909

33.9

1.0

5.5

27.4

104.1

5.0

13.9

85.2

1910

35.7

1.1

5.9

28.7

106.8

5.3

14.2

87.3

1911

36.2

1.1

5.2

29.9

109.5

5.5

13.7

90.3

1912

39.8

1.2

6.3

32.3

116.1

5.7

15.6

94.8

1913 1914

40.0

1.3

5.7

33.1

117.0

5.9

14.0

97.2

39.0

1.4

6.1

31.5

112.1

6.2

15.1

90.9

1. This subtotal exceeds nonfarm business gross product in table 1-15 by the amounts of gross national product originating in households and institutions, and in the rest of the world sector;

the latter have not been separately estimated for the pre-1929 period.

Table 1-17.—Relation of Gross National Product, National Income, and Personal Income, 1929-40

[Millions of dollars]

Line

Gross national product

Less: Capital consumption allowances

Equals: Net national product

Less: Indirect business tax and nontax liability

Business transfer payments

Statistical discrepancy

Plus: Subsidies minus current surplus of govern

ment enterprises.

Equals: National income

Less: Undistributed corporate profits

Corporate profits tax liability

Corporate inventory valuation adjustment

Contributions for social insurance

Excess of wage accruals over disbursements

Plus: Net interest paid by government

Government transfer payments to persons

Business transfer payments

Equals: Personal income

1929

104,436

8,617

95,819

7,003

587

268

-147

87,814

2,446

1,369

472

243

0

983

909

587

85,763

91,105

8,541

82,564

7,155

534

-977

-123

75,729

-3,010

842

3,260

253

0

964

999

534

76,881

1931

76,271

8,166

68,105

6,859

(>49

840

- 4 9

59,708

-5,36 6

498

2,414

262

0

1,084

2,065

649

65,698

1932

58,466

7,615

50,851

6,768

737

754

- 4 5

42,547

-5,967

385

1,047

278

0

1,141

1,433

737

50,115

1933

55,964

7,161

48,803

7,055

659

948

18

40,159

-2,426

521

-2,143

285

0

1,170

1,457

659

47,208

1934

64,975

7,112

57,863

7,815

641

731

283

48,959

-1,615

744

-625

304

0

1,230

1,553

641

53,575

1935

72,502

7,235

65,267

8,190

594

-171

403.

57,057

-669

951

-227

333

0

1,141

1,806

594

60,210

1936

82,743

7,496

75,247

8,663

594

1,118

39

64,911

-217

1,409

-738

598

0

1,101

2,926

594

68,480

1937

90,780

7,746

83,034

9,157

567

-248

60

73,618

48

1,502

- 3 1

1,800

0

1,204

1,851

567

73,921

1938

85,227

7,783

77,444

9,154

429

456

176

67,581

-916

1,029

963

1,977

0

1,192

2,405

429

68,554

1939

91,095

7,838

83,257

9,365

451

1,173

485

72,753

1,174

1,441

-714

2,136

0

1,205

2,512

451

72,884

1940

100,618

8,148

92,470

10,021

431

804

420

81,634

2,443

2,834

-200

2,282

0

1,291

2,683

431

78,680

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
GROSS NATIONAL PRODUCT AND NATIONAL INCOME

Table I—15.—Farm and Nonfarm Business Gross Product, in Current and Constant Dollars, 1941—57 l

139

1941

112,485

9,363

103,122

1942

139,936

13, 388

126,548

1943

162,767

15, 288

147,479

1944

174,525

15,658

158,867

1945

173,363

16, 230

157,133

1946

184,237

19, 280

164,957

1947

210,737

20, 747

189,990

1948 1949 1950

^Millions of current dollars!

234,185

23, 821

210, 364

230,251

19, 295

210, 956

254,205

20, 537

233, 668

1951

291,219

23,552

267, 667

1952

304,904

22, 759

282,145

1953

321,431

20, 895

300, 536

1954

317,856

20, 344

297, 512

1955

349,023

19, 612

329, 411

1956

366,868

19, 388

347, 480

1957

384,422

19, 273

365,149

[Billions of 1954 dollars]

205.8

18.8

187.0

225.1

20.4

204.6

237.8

18.8

219.0

251.2

19.2

232.0

248.6

18.1

230.5

244.1

18.4

225.7

250.3

16.9

233.4

260.4

19.3

241.1

258.2

18.3

239.9

281.8

19.3

262.5

299.5

18.1

281.4

308.7

18.8

289.9

323.7

19.5

304.3

317.9

20.3

297.5

346.2

21.4

324.7

354.1

21.5

332.5

357.7

20.8

336.9

Line

1

2

3

4

5

6

Table I—16.—Gross National Product Originating in General Government, Farms, and All Other Industries, in Current and Constant

Dollars, 1915-28

[Billions of dollars]

1915

40.5

1.4

6. 3

32.8

111.4

6.4

16.0

89.0

1916

48.9

1.5

6.8

40.5

120.0

6.6

14.6

98.8

1917

61.1

2.2

11.0

47.9

120.5

8.5

15.6

96.4

1918

77.1

5.1

12.1

60.0

132.9

16.9

15.1

100.9

1919

84.9

3.6

12.8

68.6

132.6

11.7

15.2

105.7

1920

91.9

2.9

12.2

76.8

125.6

8.7

15.1

101.7

1921

70.3

3.2

7.0

60.1

114.9

8.6

13.7

92.7

1922

75.0

3.1

7.8

64.1

133.2

8.4

14.8

110.1

1923

86.2

3.2

8.7

74.3

149.2

8.5

15.6

125.1

1924

85.9

3.4

8.4

74.1

149.0

8.8

15.0

125.2

1925

94.5

3.5

10.2

80 8

161. 8

9.2

16.0

136.6

1926

98.6

3.7

9.5

85.4

170.8

9.4

15.6

145.8

1927

96.5

3.9

9.2

83.3

170.5

9.8

16.3

144.5

1928

98.8

4.1

9.5

85.2

171.8

10.0

15.7

146.1

Line

1

2

3

4

5

6

7

8

Table I—17.—Relation of Gross National Product, National Income, and Personal Income, 1941—57

[Millions of dollars]

1941

125,822

9,041

116,781

11,296

502

375

102

104,710

4,914

7,610

-2,471

2,784

0

1,289

2,611

502

96,275

1942

159,133

10,155

148,978

11, 769

495

-830

150

137,694

5,178

11,415

-1,204

3,468

0

1,517

2,648

495

123,497

1943

192,513

10, 866

181,647

12, 735

505

-1,720

183

170,310

5,996

14,074

-773

4,516

209

2,140

2,459

505

151,392

1944

211,393

12,007

199,386

14,127

506

2,766

652

182,639

5,698

12, 949

-287

5,173

-193

2,809

3,082

506

165,696

1945

213,558

12, 549

201,009

15, 522

532

4,467

760

181,248

3,597

10,689

-564

6,138

14

3,683

5,633

532

171,222

1946

210,663

10, 694

199,969

17, 313

557

2,088

868

180,879

7,656

9,111

-5,263

5,981

- 3 0

4,463

10,854

557

179,298

1947

234,289

13,030

221,259

18, 641

674

3,541

-226

198,177

11, 721

11,283

-5,899

5,683

15

4,420

11,113

674

191,581

1948

259,426

15, 471

243,955

20,405

739

-847

-171

223,487

13, 274

12, 483

-2,152

5,220

35

4,527

10,542

739

210,435

1949

258,054

17, 274

240,780

21, 637

781

510

-162

217,690

8,522

10, 375

1,856

5,737

- 4 6

4,670

11, 622

781

208,319

1950

284,599

19,065

265,534

23, 747

843

-734

198

241,876

13, 555

17,865

-4,965

6,870

24

4,794

14, 304

843

228,468

1951

328,975

21, 970

307,005

25, 647

985

1,247

187

279,313

10, 677

22,447

-1,199

8,170

74

4,973

11,590

985

256,692

1952

346,999

24,007

322,992

28,140

1,169

1,374

-154

292,155

8,278

19,459

981

8,614

- 2 2

5,016

12, 041

1,169

273,071

1953

365,385

26, 526

338,859

30,203

1,369

1,283

-431

305,573

8,864

20, 222

-997

8,728

- 7 6

5,171

12, 887

1,369

288,259

1954

363,112

28, 809

334,303

30,151

1,262

853

-243

301,794

7,002

17,220

-318

9,695

0

5,407

14, 961

1,262

289,825

1955

397,469

31,986

365,483

32, 865

1,457

988

33

330,206

11,820

21,827

-1,736

10, 995

0

5,389

16,050

1,457

310,196

1956

419,214

34, 681

384,533

35, 631

1,526

-935

1,045

349,356

11,033

22, 422

-2,560

12, 313

0

5,745

17,094

1,526

330,513

1957

440,328

37, 743

402,585

37,644

1,595

725

1,330

363,951

9,422

21, 649

-1,548

14,168

0

6,174

19,868

1,595

347,897

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

466759 0—59

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
140 NATIONAL INCOME AND PRODUCT TABLES

Table 1-18.—Relation of Gross National Product, National Income, and Personal Income, Seasonally Adjusted Quarterly Totals at Annual

Rates, 1946-47

[Billions of dollars]

Line

Gross national productLess: Capital consumption allowances

Indirect business tax and nontax liabilityBusiness transfer payments.-.

Statistical discrepancy

Plus: Subsidies less current surplus of government enterprises_

Equals: National income

Less: Corporate profits and inventory valuation adjustment

Contributions for social insurance

E xcess of wage accruals over disbursements

Plus: Government transfer payments to persons

Net interest paid by government _

Dividends...

Business transfer payments

Equals: Personal income

1946

198.0

10.1

16. 5

3.0

1.7

169.6

13. 5

6.1

.8

12.0

4.4

5.3

. 5

171.4

206.3

10.5

17.0

.6

2.8

1.2

176.6

16.5

6.1

11.1

4.5

5.6

.6

176.7

III

217.1

10.8

17.7

.6

3.2

.4

185.2

17.9

5.9

.0

10.6

4.5

5.9

.6

182.9

IV

221.2

11.3

18.0

.6

- . 4

.1

191.9

21.2

5.8

.0

9.7

4.5

6.4

.6

186.0

Year

210.7

10.7

17.3

2.1

180.9

17.3

6.0

.0

10.9

4.5

5.8

179.3

226.0

11.9

17.9

.6

2.3

- . 1

193.1

20.2

6.1

.0

10.1

4.4

6.6

.6

188.6

II

230.0

12.9

18.2

.7

3.5

- . 2

194.5

23.8

6.1

.0

4.4

6.3

.7

186.0

III

235.6

13.3

18.7

.7

4.2

- . 3

198.4

24.5

5.3

.0

13.7

4.4

6.4

.7

193.8

IV

245.1

14.1

19.7

.7

3.9

- . 3

206.5

26.0

5.3

.0

10.7

4.4

6.8

.7

197.8

Year

234.3

13.0

18.6

.7

3.5

- . 2

198.2

23.6

5.7

.0

11.1

4.4

6.5

.7

191.6

Table 1-18.—Relation of Gross National Product, National Income, and Personal Income, Seasonally Adjusted Quarterly Totals at Annual

Rates, 1952-53

[Billions of dollars]

Line

Gross national product

Less: Capital consumption allowances

Indirect business tax and nontax liability

Business transfer payments

Statistical discrepancy.._

Plus: Subsidies less current surplus of government enterprises

Equals: National income

Less: Corporate profits and inventory valuation adjustment-.

Contributions for social insurance

Excess of wage accruals over disbursements

Plus: Government transfer payments to persons

Net interest paid by government

Dividends

Business transfer payments

Equals: Personal income

341.0

23.4

27.0

1.1

2.3

- . 1

287.2

39.1

8.6

.1

11.6

5. 0

9.0

1.1

266.1

341.3

23.9

28.1

1.2

. 0 I

- . 1 ;

288.0 |

36.6 j

8. 5 i

-

1

 I

n.7 ;

5.0 !

8 9 |

1.2

269.7

1952

III

347.0

24.1

28.3

1.2

.8

- . 2

292.4

36.0

8.6

12.3

5.0

9.0

1.2

275.6

IV

358.6

24.

29.

1.

2.

_

7

2

2

6

2

Year

300.6

38.9

8.8

.0

12.5

5.0

9.0

1.2

280.6

347.0

24.0

28.1

1.2

1.4

- . 2

292.2

37.7

8.6

. 0

12.0

5.0

9.0

1.2

273.1

1953

364.5

25.6

29.8

1.3

1. I

- . 4

306.3

40.5

8.8

.0

12.7

5.1

9.3

1.3

285.4

II

368.8

26.2

30.1

1.4

2.0

A

308.7

39.8

8.9

- . 1

12.7

5.1

9.4

1.4

288.7

III

367.1

26.8

30.4

1.4

307.2

37.5

8.7

- . 1

12.8

5.2

9.4

1.4

289.8

IV

361.0

27.4

30.4

1.4

1.2

- . 5

300.1

31.4

8.5

- . 1

13.4

5.3

9.4

1.4

289.7

Year

365.4

26.5

30.2

1.4

1.3

- . 4

305.6

37.3

8.7

- . 1

12.9

5.2

9.2

1.4

288.3

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
GROSS NATIONAL PRODUCT AND NATIONAL INCOME 141

Table I—18.—Relation of Gross National Product, National Income, and Personal Income, Seasonally Adjusted Quarterly Totals at Annual

Rates, 1948-51

[Billions of dollars]

1948

I

249.5

14.8

19.6

.7

o

o

214.4

29.6

5.2

.1

11.0

4.5

6.9

.7

202.7

II

257.7

15.4

20.3

- L 5

- . 2

222.6

30.9

5.1

.1

10.8

4.5

7.1

.7

209.6

III

264.0

15.5

20.8

.8

- . 5

- . 1

227.4

30.6

5.3

- . 2

10.4

4.5

7.4

.8

214.8

IV

265.9

16.1

20.9

.8

-1. 2

- . 1

229.2

32.4

5.3

.1

9.9

4.6

7.6

.8

214.4

Year

259.4

15.5

20.4

.7

- . 8

o

223.5

30.8

5.2

.0

10.5

4.5

7.2

210.4

I

259.8

16.6

21.0

.8

.6

- . 3

220.8

29.6

5.8

.1

11.2

4.6

7.4

.8

209.3

II

256.4

17.0

21.5

.8

- . 5

2

211A

27.6

5.7

- . 3

11.7

4.7

7.3

.8

208.9

1949

III

258.8

17.5

22.1

.8

.4

—. 1

217.8

29.6

5.7

.0

11.9

4.7

7.3

.8

207.2

IV

257.0

18.0

21.9

.8

1.5

.0

214.8

26.2

5.7

.0

11.8

4.7

7.8

.8

207.9

Year

258.1

17.3

21.6

.8

.5

—. 2

217.7

28.2

5.7

.0

11.6

4.7

7.5

.8

208.3

1950

I

265.8

18.5

22.3

.8

2.3

.1

222.1

29.4

6.6

.0

20.6

4.7

7.9

.8

220.2

II

274.4

18.9

23.3

.8

-2. 1

.2

233.6

33.5

6.7

.0

14.2

4.8

8.3

.8

221.5

III

293.2

19.1

25.2

.8

-2. 3

.3

250.6

39.2

6.9

.0

11.1

4.8

9.5

.8

230.8

IV

304.3

19.8

24.2

.9

-1. 3

.3

261.1

40.6

7.3

.1

11.3

4.8

11. 1

.9

241.2

Year

284.6

19.1

23.7

.8

7

.2

241.9

35.7

6.9

.0

14.3

4.8

9.2

.8

228.5

I

317.8

20.7

25.9

1.0

- . 3

.3

270.8

40.4

8.1

.2

11.3

4.9

8.9

1.0

248.1

II

326.4

21.5

25.0

1.0

1.0

2

278.2

41.1

8.2

- . 1

11.6

4.9

8.7

1.0

255.2

1951

III

333.8

22.4

25.4

1.0

3.1

.2

282.0

41.2

8.1

.8

11.7

5.0

9.0

1.0

258.7

IV

338.1

23.2

26.3

1.0

1.7

.1

286.0

41.1

8.3

- . 6

11.7

5.0

9.3

1.0

264.3

Year

329.0

22.0

25.6

1.0

1.2

.2

279.3

41.0

8.2

.1

11.6

5.0

9.0

1.0

256.7

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Tabls I—18.—Relation, of G ross National Product, National Income, and Personal Income, Seasonally Adjusted Quarterly Totals at Annual

Rates, 1954-57

[Billions of dollars]

I

360.0

27.9

30.1

1.3

1.0

- . 4

299.3

32.5

9.6

.0

1 14.1

5.4

! 9.4

| 1.3

287.4

II

358.9

28.5

30.2

1.3

- . 8

- . 3

299.4

33.3

9.6

.0

14.9

5.4

9.5

1.3

287.6

1954

III

362.0

29.1

29.8

1.2

.8

o

— • L

300.9

33.0

9.7

.0

15.2

5.4

9.7

1.2

289.7

IV

370.8

29.9

30.5

1.2

1.7

.0

307.5

36.1

9.9

.0

15.9

5.4

10.1

1.2

294.2

Year

363.1

28.8

30.2

1.3

.9

- . 2

301.8

33.7

9.7

.0

15.0

5.4

9.8

1.3

289.8

1955

I

384.3

30.8

31.4

1.3

3.7

- . 1

316.9

40.3

10.6

.1

15.7

5.3

10.2

1.3

298.5

II

393.0

31.6

32.8

1.4

_ 2

.0

327.3

41.9

10.8

.5

16.1

5.3

10.5

1.4

307.5

III

403.4

32.4

33.3

1.5

1.2

.1

335.0

44.4

11.2

— .6

16.1

5.4

10.9

1.5

313.8

IV

408.9

33.0

34.0

1.5

- . 9

2

341.4

45.8

11.4

.0

16.2

5.5

12.2

1.5

319.7

Year

397.5

32.0

32.9

1.5

1.0

.0

330.2

43. 1

11.0

.0

16.0

5.4

11.2

1.5

310.2

1956

I

410.8

33.7

34.5

1.5

2

.9

342.2

43.3

11.9

.0

16.6

5.5

11.7

1.5

322.3

II

414.9

34.3

35.3

1.5

-1. 3

1.0

346.2

41.6

12.1

.0

17.0

12! 0

1.5

328.7

in

420.5

35.0

35.8

1.5

-1. 5

1.1

350.8

42.8

12:l

17.3

5.8

12.2

1.5

332.3

IV

430.5

35.7

37.0

1.5

- . 5

1.2

357.9

44.0

12.7

.0

17.6

5.9

11.8

1.5

338.1

Year

419.2

34.7

35.6

1.5

— .9

1.0

349.4

42.9

12.3

.0

17.1

5. 7

12.0

1.5

330.5

1957

I

436.3

36. 6

37.1

1.6

.9

1.4

361.5

43.7

14.0

.0

18.4

6.1

12.5

1.6

342. 3

II

441.2

37.5

37.8

1.6

1.5

1.4

364.1

42.0

14.1

.0

19.9

6.2

12.6

1.6

348.4

III

445.6

38.1

37.9

1.6

.7

1.3

368.7

43.1

14.3

.0

20.0

6.2

12.7

1.6

351.8

IV

438.9

38.5

37.7

1.6

.7

1.2

361.5

38.8

14.2

.0

21.3

6.2

12.0

1.6

349.7

Year

440.3

37.7

37.6

1.6

.7

1.3

364.0

41.9

14.2

.0

19.9

6.2

12.4

1.6

347.9

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Digitized for FRASER 

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Federal Reserve Bank of St. Louis
II. Personal Income and Outlay"

PAGE

II—1. Personal Income and Its Disposition, 1929-57 (3 and 36) 144

11-2. Personal Income and Its Disposition, Seasonally Adjusted Quarterly Totals

at Annual Rates, 1946-57 (47) 146

II—3. Personal Income, Seasonally Adjusted Monthly Totals at Annual Rates,

1946-57 (52) * 148

11-4. Personal Consumption Expenditures, by Type of Product, 1946-57 (30) 150

11-5. Personal Consumption Expenditures by Major Type, in Constant Dollars,

1946-57 151

II—6. Personal Consumption Expenditures by Major Type, Seasonally Adjusted

Quarterly Totals at Annual Rates, 1946-57 (51) 152

II—7. Personal Consumption Expenditures by Major Type, Quarterly, 1946—57

(50) 154

II—8. Personal Income, by States and Regions, 1929-57 156

II-9. Per Capita Personal Income, by States and Regions, 1929-57 158

11-10. Disposable Personal Income, Total and Per Capita, by States and Regions,

Selected Years, 1929-55 160

11—11. Distribution of Consumer Units and Their Family Personal Income by

Income Brackets, Selected Years, 1944-56 161

11-12. Distributions of Nonfarm Families, Farm Operator Families, and Unattached Individuals and Their Family Personal Income, by Income

Brackets, 1953-56 161

11-13. Distribution of Family Personal Income Among Quintiles of Consumer

Units, Selected Years, 1944-56 161

*Figures in parentheses refer to corresponding tables in the 1954 National Income supplement.

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Federal Reserve Bank of St. Louis
144 NATIONAL INCOME AND PRODUCT TABLES

Table II-l.—Personal Income and Its Disposition, 1929-40

[Millions of dollars]

Line

Personal income.

Wage and salary disbursements

Commodity-producing industries >

Manufacturing only

Distributive industries '

Service industries 1

Government

Other labor incomeProprietors' income

Business and professional.

Farm

Rental income of persons..

Dividends

Personal interest income..

Transfer payments

Old-age and survivors insurance benefits..

State unemployment insurance benefits...

Veterans' benefits

 2

Others

Less: Personal contributions for social insurance._

Less: Personal tax and nontax payments..

Federal

State and local

Equals: Disposable personal income

Less: Personal consumption expenditures..

Equals: Personal saving

Addendum: Disposable personal income in constant

(1954) dollars.

1929

85,763

50,423

21, 492

16, 092

15, 558

8,435

4,938

561

14, 759

8,791

5,968

5,425

5,813

7,428

1,496

142

2,643

1,263

1,380

83,120

78,952

4,168

134, 935

1930

76,881

46,187

18,547

13,850

14,491

7,995

5,154

551

11,540

7,410

4,130

4,778

5,490

6,949

1,533

601

932

147

2,507

1,134

1,373

74,374

70,968

3,406

126, 058

1931

65,698

39,119

14,286

10,810

12, 523

7,052

5,258

510

8, 734

5, 581

3,153

3,761

4,088

6,923

2, 714

1,574

1,140

151

1,858

607

1,251

63,840

61, 333

2,507

121, 369

1932

50,115

30,477

9,926

7,678

9,758

5,827

4,966

451

5,316

3,384

1,932

2,713

2,565

6,575

2,170

773

1,397

152

1,455

331

1,124

48,660

49, 306

-646

104, 645

1933

47,208

28, 997

9,807

7,827

8,804

5, 244

5,142

409

5,599

3,166

2,433

1,971

2,056

6,212

2,116

545

1,571

152

1,464

474

990

45,744

46, 392

-648

102,107

1934

53,575

33, 705

12,057

9,643

9,918

5,654

6,076

443

7,010

4,564

2,446

2,587

6,099

2,194

438

1,756

157

1,595

595

1,000

51,980

51,894

86

109,202

1935

60,210

36, 690

13, 542

10, 829

10,708

5,939

6,501

479

10, 387

5,351

5,036

1,661

2,863

5,892

2,400

474

1,926

162

1,888

827

1,061

58,322

56,289

2,033

120,004

1936

68,480

41,920

15, 789

12, 410

11, 765

6,500

7,866

572

10, 482

6,530

3,952

1,776

4,548

5,842

3,520

1,889

1,631

180

2,258

1,130

1,128

66,222

62, 616

3,606

134, 872

1937

73,921

46,107

18,358

14, 571

13,162

7,094

7,493

12, 691

7,073

5,618

2,081

4,685

5,912

2,418

1

2

593

1,822

566

2,921

1,723

1,198

71,000

67,259

3,741

139,489

68,554

42,976

15,274

11, 837

12,631

6,847

8,224

595

11,128

6,793

4,335

2,560

3,187

5,828

2,834

10

393

531

1,900

554

2,862

1,635

1,227

65,692

64, 641

1,051

131,912

1939

72,884

45,941

17,358

13,585

13, 284

7,100

8,199

627

11,610

7,293

4,317

2,742

3,788

5,809

2,963

14

429

522

1,998

596

2,440

1,235

1,205

70,444

67, 578

2,866

143,179

1940

78,680

49, 818

19, 714

15, 584

14,202

7,479

8,423

13,010

8,442

4,568

2,885

4,043

5,781

3,114

35

518

524

2,037

2,604

1,364

1,240

76,076

71,881

4,195

153,070

1. "Commodity-producing" industries consist of agriculture, forestry, and fisheries; mining; contract construction; and manufacturing. "Distributive" industries consist of wholesale and retail trade, transportation, and communications and public utilities,

industries comprise finance, insurance, and real estate, and services.

"Service"

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Federal Reserve Bank of St. Louis
PERSONAL INCOME AND OUTLAY 145

Table II—\.—Personal Income and Its Disposition, 1941—57

[Millions of dollars]

1941

96,275

62, 086

27, 523

21,714

16, 320

8,051

10,192

720

17, 401

10, 897

6,504

3,465

4,458

5,833

3,113

88

344

509

2,172

801

3,293

2,016

1,277

92,982

81, 875

11,107

175,107

1942

123,497

82,109

39,151

30,922

18, 010

8,962

15, 986

860

23, 907

13,899

10,008

4,547

4,289

5,808

3,143

130

344

500

2,169

1,166

5,981

4,668

1,313

117,516

89, 748

27,768

197, 506

1943

151,392

105,619

48, 984

40, 883

20,129

9,875

26,631

1,082

28,187

16,823

11, 364

5,097

4,484

5,798

2,964

165

80

507

2,212

1,839

17, 845

16,517

1,328

133,547

100, 541

33,006

205,457

1944

165,696

117,016

50, 401

42, 913

22, 705

10, 930

32, 980

1,526

29, 565

18,040

11, 525

5,413

4,673

6,151

3,588

209

62

901

2,416

2,236

18, 935

17, 536

1,399

146,761

109, 833

36,928

213, 937

1945

171,222

117, 563

45,865

38, 229

24, 773

12,012

34, 913

1,799

30, 835

19,011

11,824

• 5,634

4,691

6,868

6,165

273

446

2,776

2,670

2,333

20,867

19, 379

1,488

150,355

121, 699

28,656

211, 768

1946

179,298

111,866

46, 043

36, 476

30, 923

14,305

20, 595

1,891

36, 573

21, 321

15, 252

6,208

5,784

7,576

11,411

378

1,094

6,754

3,185

2,011

18, 729

17,162

1,567

160,569

147,109

13,460

209,894

1947

191,581

122, 843

54, 336

42, 500

35,164

15, 997

17, 346

2,334

35, 492

19, 948

15, 544

6,510

6,521

8,212

11, 787

463

775

6,745

3,804

2,118

21, 468

19,650

1,818

170,113

165, 409

4,704

201, 079

1948

210,435

135,179

60, 257

46, 459

38, 802

17, 349

18, 771

2,713

40,194

22, 405

17, 789

7,297

7,243

8,706

11,281

552

790

5,769

4,170

2,178

21,135

18,997

2,138

189,300

178, 313

10,987

211, 508

1949

208,319

134, 356

56, 914

43,860

39, 016

17, 925

20, 501

3, 021

35, 583

22,657

12,926

8,274

7,473

9,443

12, 403

664

1,730

5,104

4,905

2,234

18, 665

16,194

2,471

189,654

181,158

8,496

213, 815

1950

228,468

146, 367

63,495

49, 393

41,313

19, 289

22, 270

3,823

37,541

23, 541

14, 000

9,013

9,208

10, 263

15,147

954

1,367

4,884

7,942

2,894

20, 813

18,179

2,634

207,655

195, 013

12,642

230, 984

1951

256,692

170, 714

74, 885

58, 277

45, 953

21, 060

28, 816

4,786

42, 329

25, 995

16, 334

9,431

9,029

11,245

12, 575

1,872

837

3,897

5,969

3,417

29, 211

26,278

2, 933

227,481

209, 805

17,676

236,959

1952

273,071

184, 857

80, 547

62, 960

48, 749

22, 628

32, 933

5, 316

42, 233

26, 896

15, 337

10,154

8, 954

12,100

13, 210

2,177

992

3,863

6,178

3,753

34, 357

31,165

3,192

238,714

219, 774

18,940

243,586

1953

288,259

198,106

88, 077

69, 881

51, 797

24, 283

33, 949

5, 994

40, 723

27, 445

13, 278

10, 528

9,225

13, 367

14, 256

2,979

954

3,738

6,585

3,940

35, 785

32, 359

3,426

252,474

232, 649

19,825

255, 024

1954

289,825

196, 259

84, 062

66, 077

52, 324

25, 481

34, 392

6,214

40, 442

27, 751

12, 691

10, 869

9,839

14, 552

16, 223

3,633

2,015

3,848

6,727

4,573

32, 940

29,155

3,785

256,885

238,025

18,860

256, 885

1955

310,196

210, 902

91, 390

72, 252

55, 766

27, 771

35,975

7,136

42,149

30. 382

11, 767

10, 698

11,215

15, 770

17, 507

4,915

1,369

4,250

6,973

5,181

35, 748

31, 521

4,227

274,448

256, 940

17,508

273, 355

1956

330,513

227, 304

98,665

77, 697

60,134

30, 459

38, 046

7,898

42, 435

30, 803

11,632

10, 887

12, 038

17, 047

18, 620

5,652

1,400

4,227

7,341

5,716

40, 059

35, 244

4,815

290,454

269, 400

21,054

284, 202

1957

347,897

238,120

102,180

80,630

63, 258

32, 563

40,119

8,947

43,001

31, 403

11, 598

11, 837

12, 355

18, 772

21, 463

7,321

1,755

4,341

8,046

6,598

42, 748

37, 389

5,359

305,149

284,442

20,707

290, 066

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

2. Includes the payments listed in lines 11-14 in table III-7, and veterans' aid and bonuses

paid by State and local governments.

3. Includes the government transfer payments from table III-7 that are not shown separately above, and business transfer payments.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
146 NATIONAL INCOME AND PRODUCT TABLES

Table II-2.—Personal Income and Its Disposition, Seasonally Adjusted Quarterly Totals at Annual Rates, 1946-47 *

[Billions of dollars]

Line

Personal income.

Wage and salary disbursements

Commodity-producing industriesManufacturing only

Distributive industries

Service industries

Government

Other labor income..

Proprietors' income

Business and professional.

Farm

Rental income of persons..

Dividends

Personal interest income.

Transfer payments

Old-age and survivors insurance benefits,.

State unemployment insurance benefits...

Veterans' benefits

Other

Less: Personal contributions for social insurance..

Less: Personal tax and nontax payments..

Federal

S tate and local

Equals: Disposable persona] income

Less: Personal consumption expenditures

Equals: Personal saving

Addendum: Disposable personal income in constant (1954) dollars.

1946

171.4

106.5

40.2

31.5

28.1

13.5

24.8

1.8

34.0

20.7

13.3

5.9

5.3

7.4

12.5

.3

1.5

7.7

3.0

2.1

17.8

16.2

1.5

153.6

137.3

16.3

215.5

176.7

110.2

44.9

35.9

30.9

14.1

20.3

1.8

35.8

21.7

14.1

5.6

7.5

11.7

.4

1.2

6.8

3.2

2.1

18.6

17.0

1.5

158.2

143.0

15.1

218.1

III

182.9

113.6

48.4

38.3

31.8

14.6

18.8

1.9

38.4

21.8

16.6

6.2

5.9

7.6

11.1

.4

.9

6.6

3.2

2.0

19.0

17.5

1.6

163.9

152.7

11.2

207.4

I V

186.0

116.8

50.6

40.2

32.7

15.1

18.5

2.0

38.0

21.0

17.0

6.6

6.4

7.8

10.3

.4

.7

5.8

3.3

19.5

17.9

1.6

166.5

155.4

11.0

200.1

Year

179.3

111.9

46.0

36.5

30.9

14.3

20.6

1.9

21.3

15.3

6.2

5.8

7.6

11.4

.4

1.1

6.8

3.2

2.0

18.7

17.2

1.6

160.6

147.1

13.5

209.9

188.6

119.6

52.7

41.2

33.7

15.4

17.8

2.1

37.2

20.1

17.1

6.5

7.9

10.8

.4

.9

5.8

3.6

2.2

21.1

19.3

1.7

167.5

159.4

8.1

202.3

II

186.0

121.0

53.4

42.0

34.2

15.9

17.4

2.3

33.6

19.8

13.9

6.2

6.3

8.1

10.6

.5

.9

5.5

3.8

2.2

21.2

19.4

1.8

164.8

163.9

197.1

I II

193.8

123.1

54.3

42.3

35.7

16.3

16.8

2.4

34.8

19.6

15.2

6.4

6.4

8.3

14.4

.5

.8

9.2

3.9

2.1

21.5

19.7

1.9

172.3

167.2

.5.1

202.9

[V

197.8

127.5

56.8

44.4

36.9

16.4

17.3

2.5

36.3

20.3

16.0

6.9

6.8

8.5

11.4

.5

.6

6.4

3.9

2.1

22.1

20.2

1.9

175.7

171.2

4.5

202.2

Year

191.6

122.8

54.3

42.5

35.2

16.0

17.3

2.3

35.5

19.9

15.5

6.5

6.5

8.2

11.8

.5

.8

6.7

3.8

2.1

21.5

19.6

1.8

170.1

165.4

4.7

201.1

1. Footnotes to table 11-1 are relevant to this table also.

Table II-2.—Personal Income and Its Disposition, Seasonally Adjusted Quarterly Totals at Annual Rates, 1952-53 1

[Billions of dollars]

Line

Personal income

Wage and salary disbursements

Commodity-producing industries_

Manufacturing only

Distributive industries

Service industries

Government

Other labor income _

Proprietors' income

Business and professional _

Farm

Rental income of persons..

Dividends

Personal interest income.

Transfer payments

Old-age and survivors insurance benefits _

State unemployment insurance benefits. _

Veterans' benefits

Other

Less: Personal contributions for social insurance_

Less: Personal tax and nontax payments_

Federal.

State and local _.

Equals: Disposable personal income

Less: Personal consumption expenditures _

Equals: Personal saving...

Addendum: Disposable personal income in constant (1954) dollars.

1952

266.1

180.3

78.6

61.1

47.6

22.1

32.0

5.1

41.2

26.4

14.7

9.9

9.0

11.8

12.7

2.0

1.1

3.5

6.0

3.8

33.9

30.8

3.1

232.1

214.6

17.5

238-. 1

II

269.7

181.8

78.5

61.3

48.1

22.4

32.8

5.2

42.4

26.8

15.6

10.1

8.9

11.9

12.9

2.0

1.1

3.5

6.3

3.7

34.0

30.8

3.2

235.6

217.7

17.9

240.9

III

275.6

185. 1

79.7

62.1

49.2

22.8

33.4

5.4

43.9

26.8

17.1

10.3

9.0

12.2

13.5

2.1

1.0

4.3

6.1

3.8

34.5

31.3

241.1

219.6

21.5

245.8

IV

280.6

191.9

85.1

67.2

50.1

23.2

33.5

5.5

41.4

27.5

13.9

10.4

9.0

12.5

13.7

2.6

.8

4.1

6.2

3.8

35.0

31.7

3.3

245.6

227.2

18.4

248.8

Year

273.1

184.9

80.5

63.0

48.7

22.6

32.9

5.3

42.2

26.9

15.3

10.2

9.0

12.1

13.2

2.2

1.0

3.9

6.2

3.8

34.4

31.2

3.2

238.7

219.8

18.9

243.6

1953

285.4

195.8

87.6

69.5

50.7

23.6

33.8

5.8

41.2

27.6

13.7

10.4

9.3

12.9

14.0

2.7

.9

3.9

6.5

3.9

35.5

32.1

3.3

250.0

230.9

19.0

253.3

II

288.7

198.9

88.9

70.9

51.7

24.2

34.0

5.9

40.7

27.5

13.2

10.5

9.4

13.2

14.1

3.0

.8

3.7

6.5

4.0

35.9

32.5

3.4

252.8

233.3

19.4

256.1

III

289.8

199.7

88.8

70.5

52.4

24.5

34.1

6.1

40.3

27.4

12.9

10.6

9.4

13.5

14.2

3.1

.9

3.7

6.5

4.0

36.0

32.5

3.5

253.8

234.1

19,7

255.9

IV

289.7

198.1

87.0

68.6

52.3

24.8

34.0

6.2

40.7

27.3

13.3

10.7

9.4

13.8

14.8

3.1

1.3

3.6

6.8

3.9

35.8

32.3

3.5

253.8

232.3

21.6

255.9

Year

288.3

198.1

88.1

69.9

51.8

24.3

33.9

6.0

40.7

27.4

13.3

10.5

9.2

13.4

14.3

3.0

1.0

3.7

6.6

3.9

35.8

32.4

3.4

252.5

232.6

19.8

255.0

1. Footnotes to table II-l are relevant to this table also.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
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PERSONAL INCOME AND OUTLAY

Table II-3.—Personal Income, Seasonally Adjusted Monthly Totals at Annual Rates, 1946-57 1—Continued

[Billions of dollars]

149

Year and month

1952

January

February

March

April

May.. __

June _

July

August

September

October _

November ...

December.., ..

Total

1953

January

February

March

April

May

June.

July

August

September.

October... . . _.

November

December

Total

1954

January. .

February.

March. . .__ _

April... .... .

May__ . . _

June...

July

August... .

September.

October... ._

November

December. _

Total.

January. _

FebruaryMarch. ^

April

May

June .

1955

July

August

September..

October

November.

December..

Total.

January..

February.

March

April

May

June.. ___

July

August

September..

October

November..

December..

1956

Total .

January...

February.

March

April

May

June

1957

July

August

September

October

November „._.

December .

Total

Personal

income

263.7

267.2

267.3

267.7

269.8

271.5

270.5

276.9

279.4

280.5

279.6

281.6

273.1

283.7

285.0

287.6

287.5

288.4

290.2

290.1

289.5

289.9

290.5

289.2

289.2

288.3

287.3

287.9

286.9

287.0

287.4

288.3

288.3

289.4

291.4

291.5

294.5

296. 7

289.8

296.6

298.1

300.8

305.1

308.1

309.4

312.8

313.1

315.6

316.7

319.6

322.7

310.2

321.0

322.2

323.8

327.4

328.6

330.2

329.3

333.2

334.5

337.4

337.9

338.9

330.5

340.1

342.8

344.1

345.9

348.6

350.7

351.8

352.1

351.4

350.6

350. 2

348.4

347.9

Wage and salary disbursements

Service

21.9

22.1

22.2

22.3

22.4

22.6

22.7

22.8

23.0

23.1

23.1

23.3

22.6

23.4

23.6

23.8

24.1

24.1

24.3

24.5

24.5

24.6

24.7

24.8

24.8

24.3

24.7

24.8

24.9

25.2

25.1

25.3

25.4

25.6

25.8

26.0

26.3

26.4

25.5

26.6

26.6

26.9

27.2

27.4

27.6

27.9

28.2

28.4

28.5

28.7

29.0

27.8

29.3

29.5

29.8

30.0

30.1

30.4

30.6

30.8

30.8

31.1

31.3

31.6

30.5

31.7

31.9

32.1

32.3

32.5

32.6

32.8

32.9

32.9

32. 9

32.9

33.2

32.6

All industries

178.8

180.6

181.3

180.8

181.8

182.8

180.5

186.1

188.7

190.2

192.1

193.4

184.9

193.9

195.8

197.5

198. 1

199.0

199.5

200.0

200.0

199.2

199.1

198.0

197.0

198.1

195.6

195.7

194.9

195.1

195.4

195.6

195.0

195.3

196.0

197.0

199.0

200.2

196.3

201.0

202.2

203.9

206.8

209.3

210.5

214.2

213.3

214.8

216.2

218.4

219.8

210.9

220.3

221.0

222.8

225.7

225.8

227.5

225.9

228.6

230.2

231.3

232.5

235.0

227.3

234.3

235.8

236.6

236.9

238.4

240.0

240.5

240.8

240.2

238. 6

238.0

237.3

238.1

Commodityproducing

Total

77.8

78.9

79.0

78.6

78.7

78.2

75.6

80.4

83.1

83.9

85.1

86.5

80.5

86.7

87.6

88.6

88.8

88.8

89.2

89.3

89.0

88.1

87.9

86.8

86.3

88.1

84.9

85.0

84.3

83.8

83.9

83.9

82.8

82.6

82.9

83.6

85.2

85.8

84.1

86.2

87.1

88.4

89.7

91.3

91.5

92.2

92.2

93.0

94.0

95.4

95.7

91.4

95.6

95.6

96.2

98.2

98.1

98.6

96.8

98.9

99.9

101.1

101.4

102.9

98.7

101.8

102.4

102.5

102.7

102.6

103.4

103.3

103.1

102.4

101.5

101.0

99.8

102.2

Manufacturing only

60.5

61.2

61.6

61.4

61.4

61.2

58.6

62.7

65.0

66.1

67.1

68.3

63.0

68.7

69.5

70.5

70.9

70.9

71.0

71.1

70.7

69.8

69.4

68.5

68.0

69.9

67.1

66.8

66.3

65.9

65.9

65.8

64.9

64.7

65.0

65.6

67.1

67.5

66.1

67.9

68.8

69.7

70.8

72.1

72.3

72.7

72.9

73.6

74.6

76.0

76.0

72.3

75.7

75.3

75.8

77.2

76.9

77.2

75.9

77.7

78.6

79.9

80.3

81.4

77.7

80.7

80.9

80.9

81.1

81.0

81.5

81.4

81.3

80.7

80.0

79.8

78.6

80.6

Distributive

47.4

47.5

47.9

47.6

48.0

48.5

48.9

49.4

49.3

49.8

50.2

50.2

48.7

50.2

50.8

51.2

51.3

51.9

52.0

52.3

52.3

52.5

52.5

52.5

52.1

51.8

52.1

51.9

51:8

52.1

52.2

52.0

52.4

52.4

52.5

52.6

52.7

53.1

52.3

53.3

53.5

53.8

54.3

55.1

55.6

56.3

56.7

57.1

57.2

57.7

58.4

55.8

58.7

58.8

59.4

59.9

59.9

60.5

60.3

60.5

60.8

60.4

61.0

61.5

60.1

61.7

62.1

62.4

62.4

63.3

63.9

64. 0

64.2

64.2

63.5

63. 6

63.7

63.3

Government

31.7

32.1

32.2

32.3

32.7

33.5

33.2

33.5

33.3

33.5

33.6

33.4

32.9

33.6

33.8

33.9

33.9

34.1

34.1

34.0

34.1

34.1

34.0

34.0

33.9

33.9

33.9

33.9

33.9

34.0

34.2

34.4

34.4

34.7

34.8

34.8

34.8

34.9

34.4

34.9

35.0

34.8

35.6

35.5

35.8

37.8

36.2

36.3

36.5

36.6

36.7

36.0

36.8

37.1

37.4

37.6

37.7

38.0

38.2

38.4

38.6

38.7

38.9

39.0

38.0

39.2

39.4

39.6

39.5

40.0

40.2

40.4

40.6

40.7

40.7

40.5

40.6

40.1

Other

labor

income

5.1

5.1

5.2

5.2

5.2

5.3

5.3

5.4

5.5

5.5

5.5

5.5

5.3

5.7

5.8

5.9

5.9

5.9

6.0

6.0

6.1

6.1

6.2

6.2

6.2

6.0

6.

6.

6.

6.2

6.2

6. 3

6.3

6.4

6.5

6.2

6.6

6.7

6.9

7.0

7.0

7.1

7.2

7.3

7.4

7.4

7.5

7.5

7.1

7.6

7.6

7.6

7.7

7.8

7.8

7.9

8.0

8.1

8..1

8.3

8.4

7.9

8.5

8.6

8.7

8.8

8.9

9.0

9.1

9.1

9.1

9.2

9.2

9.2

8.9

Proprietors'

income

Business

and professional

26.3

26.7

26.3

26.6

26.9

27.0

26.8

26.6

27.0

27.5

27.2

27.8

26.9

27.4

27.7

27.6

27.5

27.4

27.5

27.6

27.3

27.3

27.4

27.3

27.3

27.4

26.9

27.2

27.2

27.6

27.4

27.8

27.8

27.8

27.9

28.0

28.4

29.1

27.8

29.0

29.1

29.8

30.1

30.4

30.6

30.7

30.9

31.1

31.0

31.0

30.9

30.4

30.8

30.6

30.8

30.7

31.0

30.9

30.7

31.0

30.6

30.8

30.9

31.0

30.8

31.0

31.2

31.1

31.3

31.4

31.6

31.8

31.8

31.6

31.6

31.2

31.2

31.4

Farm

14.0

15.3

14.9

15.2

15.3

16.3

17.3

17.2

16.9

15.7

13.0

13.0

15.3

14.2

13.2

13.6

13.0

13.0

13.7

13.0

12.3

13.4

13.2

13.2

13.6

13.3

14.0

13.7

13.0

12.0

11.9

12.2

12.2

13.1

13.9

12.0

12.3

11.9

12.7

12.0

11.9

11.4

12.2

12.1

11.9

11.2

11.9

12.0

11.4

11.9

11.2

11.8

11.3

11.7

10.9

11.1

11.5

11.1

11.7

12.2

12.0

13.1

11.9

11.2

11.6

11.4

11.6

11.5

11.6

11.6

11.5

11.9

11.8

11.7

11.4

11.4

11.8

11.6

Rental

income

of

persons

9.8

9.9

9.9

10.0

10.1

10.1

10.2

10.3

10.3

10.4

10.4

10.4

10.2

10.4

10.4

10.4

10.5

10.5

10.5

10.5

10.5

10.6

10.6

10.7

10.7

10.5

10.7

10.8

10.8

10.9

10.9

10.9

10.9

10.9

10.9

10.9

10.9

10.9

10.9

10.8

10.8

10.7

10.7

10.7

10.7

10.6

10.6

10.7

10.7

10.7

10.7

10.7

10.7

10.7

10.7

10.7

10.7

10.8

10.8

10.9

11.0

11.1

11.2

11.3

10.9

11.4

11.4

11.5

11.6

11.7

11.8

11.9

12.0

12.1

12.1

12.2

12.2

11.8

Dividends

9.0

9.0

9.0

8.9

8.9

9.0

9.0

9.0

9.0

9.0

9.1

8.8

9.0

9.2

9.3

9.3

9.4

9.4

9.4

9.4

9.4

9.4

9.4

9.4

9.4

9.2

9.4

9.4

9.4

9.4

9.5

9.6

9.7

9.7

9.7

9.7

9.9

10.7

9.8

10.1

10.2

10.3

10.4

10.5

10.6

10.7

10.9

11.2

11.4

11.5

13.7

11.2

11.6

11.7

]1.8

]1.9

12.0

12.1

]2. 2

12.3

12.2

12.3

J2.3

10.9

12.0

12.4

12.5

12.5

12.6

12.6

•2.7

12. 8

12.8

12.7

12.6

12. 6

10.8

12.4 1

Personal

interest

income

11.7

11.8

11.8

11.9

11.9

12.0

12.1

12.2

12.3

12.4

12.5

12.6

12.1

12.7

12.9

13.0

13.1

13.2

13.3

13.4

13.5

13.7

13.8

13.8

13.9

13.4

14.0

14.1

14.2

14.3

14.4

14.5

14.6

14.7

14.8

14.9

15.0

15.1

14.6

15.2

15.3

15.4

15.5

15.6

15.7

15.8

15.9

16.1

16.2

16.3

16.4

15.8

16.4

16.5

16.5

16.8

16.9

17.0

17.1

17.2

17.3

17.5

17.6

17.8

17.0

18.0

18.2

18.4

18.6

18.7

18.9

18.9

19.0

19.1

19.1

19.1

19.2

18.8

Transfer payments

12.8

12.5

12.7

12.8

13.2

12.8

13.0

13.9

13.7

13.5

13.5

13.9

13.2

14.0

13.9

14.2

14.1

13.9

14.3

14.1

14.3

14.2

14.9

14.5

15.0

14.3

15.0

15.3

15.8

16.1

16.2

16.2

16.5

16.3

16.6

17.3

17.2

17.0

16.2

16.8

16.9

17.4

17.5

17.5

17.6

17.6

17.6

17.6

17.6

17.8

17.8

17.5

18.0

18.0

18.3

18.4

18.6

18.6

18.6

18.9

18.9

19.1

19.1

19.2

18.6

19.7

19.9

20.3

21.0

21.8

21.8

21.7

21.5

21.5

22.6

23.0

23.3

21.5

Less:

Personal

contributions

for social

insurance

3.9

3.7

3.8

3.7

3.6

3.7

3.8

3.7

3.8

3.8

3.8

3.9

3.8

3.9

4.0

4.0

4.0

4.0

4.0

3.9

3.9

4.0

3.9

3.9

3.9

4.5

4.5

4.6

4.5

4.5

4.5

4.6

4.6

4.6

4.7

4.6

4.7

4.6

5.0

5.0

5.1

5.1

5.1

5.2

5.3

5.3

5.3

5.3

5.3

5.3

5.2

5.6

5.6

5.6

5.6

5.7

5.7

5.7

5.8

5.7

5.8

5.9

5.9

5.7

6.6

6.5

6.6

6.5

6.6

6.6

6.7

6.7

6.6

6.6

6.6

6.6

6.6

Nonagricultural

income

246.2

248.4

249.1

249.1

251. 1

251.8

249.7

256.3

259.0

261.4

263.4

265.2

254.3

266.1

268. 5

270.5

271.1

271.9

273.0

273.7

273.7

273.0

273.9

272.6

272.3

271.5

270.0

270.7

270.5

271.5

272.0

272.7

272.8

273.0

274.1

276.2

278.9

281.4

273.8

281.3

282.9

285.9

289.5

292.5

294.1

298.2

297.8

300.1

301.9

304.2

308.0

295.0

306.3

307.1

309.4

312.7

313.5

315.5

314.1

317.5

319.0

320.8

322.5

324.1

315.4

325.1

327.6

329.0

330.6

333.3

335.6

336.2

336.6

336.1

335.7

335.2

333. 0

332.7

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
150 NATIONAL INCOME AND PRODUCT TABLES

Table II-4.—Personal Consumption Expenditures, by Type of Product, 1946-57*

[Millions of dollars]

Line

54

I. Food i and tobacco _

1. Food purchased for off-premise consumption (n. d. c.)

2. Purchased meals and beverages

 2 (n. d. c.)

3. Food furnished government (including military)

and commercial employees (n. d. c.)

4. Food produced and consumed on farms (n. d. c.)

5. Tobacco products (n. d. c.)

II. Clothing, accessories, and jewelry.

1. Shoes and other footwear (n. d. c.)

2. Shoe cleaning and repair (s.)

3. Clothing and accessories except footwear

 3

a. Women's and children's (n. d. c.)

b. Men's and boys' (n. d. c.)

4. Standard clothing issued to military personnel

(n. d. c).

5. Cleaning, dyeing, pressing, alteration, storage, and

repair of garments including furs (in shops) not

elsewhere classified (s.).

6. Laundering in establishments (s.)

7. Jewelry and watches (d. c.)

8. Other* (s.)

III. Personal care_

1. Toilet articles and preparations (n. d. c.)

2. Barbershops, beauty parlors, and baths (s.)-

IV. Housing.

1. Owner-occupied nonfarm dwellings—space-rental

value5 (s.).

2. Tenant-occupied nonfarm dwellings (including lodging houses)—space rent 5

 (s.).

3. Rental value of farmhouses (s.)

4. Other« (s.)

V. Household operation

1. Furniture, including mattresses and bedsprings

(d. a).

2. Kitchen and other household appliances

 7 (d. c.)

3. China, glassware, tableware, and utensils (d. c.)

4. Other durable house furnishings

 8 (d. c.)

5. Semidurable house furnishings

 9 (n. d. c.)

6. Cleaning and polishing preparations, and miscellaneous household supplies and paper products

(n. d. c).

7. Stationery and writing supplies (n. d. c.)

8. Household utilities

a. Electricity (s.)

b. Gas (s.)

c. Water (s.)

d. Other fuel and ice (n. d. c.)

9. Telephone, telegraph, cable, and wireless (s.)

10. Domestic service (s.)

11. Other

 10

 (s.)

VI. Medical care and death expenses

1. Drug preparations and sundries (n. d. c.)

2. Ophthalmic products and orthopedic appliances

(d. c).

3. Physicians (s.)

4. Dentists (s.)

5. Other professional services

 n (s.)

6. Privately controlled hospitals and sanitariums

 12

 (s.)

7. Medical care and hospitalization insurance

 13

 (s.)

8. Funeral and burial expenses (s.)

VII. Personal business

1. Brokerage charges and interest, and investment

counseling (s.).

2. Bank service charges, trust services, and safe-deposit

box rental (s.).

3. Services furnished without payment by financial intermediaries except insurance companies (s.).

4. Expense of handling life insurance

 14

 (s.)

5. Legal services (s.)

6. Interest on personal debt (s.) _

7. Other « (s.)

VIII. Transportation

1. User-operated transportation

a. New cars and net purchases of used cars (d. c.).

b. Tires, tubes, accessories, and parts (d. c.)

c. Automobile repair, greasing, washing, parking, storage, and rental (s.).

d. Gasoline and oil (n. d. c.)

e. Bridge, tunnel, ferry, and road tolls (s.)

f. Automobile insurance premiums less claims

paid (s.).

2. Purchased local transportation

a. Street and electric railway and local bus (s.).

b. Taxicab (s.) :

c. Railway (commutation) (s.)

3. Purchased intercity transportation

a. Railway (excluding commutation) and sleeping and parlor car (s.).

b. Intercity bus (s.)

c. Airline (s.)

d. Other » (s.)

1946

52,496

33,332

11, 709

1,349

2,628

3,478

22,215

2,781

241

15,097

9,728

5,369

364

1,198

715

1,506

313

2,086

1,109

977

13,800

7,343

4,750

1,303

404

20,092

2,248

1,811

1,263

2,194

2,039

924

426

4,941

1,270

754

433

2,484

1,312

2,120

814

6,893

1,271

396

1,720

772

338

1,163

444

789

4,993

320

234

1,499

1,292

609

618

421

12,066

9,004

2,436

1,492

1,717

3,034

65

260

1,951

1,334

554

63

1,111

627

341

106

37

1947

58,274

38, 677

11,939

1,023

2,766

3,869

22,952

2,955

227

15,610

9,963

5,647

229

1,349

796

1,463

323

2,253

1,245

1,008

15,567

8,471

5,113

1,447

536

23,949

2, 552

3, 179

1.348

2, 453

2, 135

1,523

440

5,682

1,406

862

464

2,950

1,383

2,348

906

7,685

1,313

400

2,020

784

390

1,397

513

868

5,707

244

260

1, 532

1, 549

668

904

550

15,390

12,316

4,587

1,674

1,975

3,630

69

381

2,007

1,326

614

67

1,067

589

321

120

37

1948

60,216

40,312

11,996

1,021

2,732

4,155

24,356

3,090

216

16.831

10, 916

5,915

191

1,431

835

1,436

326

2,311

1,283

1,028

17,588

9,755

5,723

1,505

605

26,232

2,779

3, 468

1,457

2,712

2,354

1,628

469

6,428

1,561

956

490

3. 421

1,579

2, 363

995

8,674

1. 466

431

2,327

900

445

1,621

559

925

6,560

290

292

1,768

1,623

763

1,232

592

17,794

14, 601

5,724

1,669

2,205

4, 435

76

492

2,098

1,402

620

76

1,095

602

323

134

36

1949

39,198

11,686

1,000

2,228

4,272

23,451

3,109

199

15,995

10,205

5,790

212

1,439

835

1,353

309

2,324

1.2H0

1,014

19,295

10,915

6,370

1,408

602

25,651

2, 689

3,127

1,414

2,605

2,332

1.599

496

6, 299

1, 748

1,028

512

3,011

1,737

2,356

997

9,003

1,555

454

2,338

920

455

1,772

557

952

7,015

247

313

1,877

1,668

832

1,498

580

20,864

17, 777

8,077

1,684

2,364

5,003

85

564

2,063

1,401

583

79

1,024

515

324

151

34

59,670

40,351

11, 749

1,076

2,062

4,432

23,795

3,323

194

16,017

10,014

6,003

272

1,462

838

1,370

319

2,452

1,375

1,077

21,198

12,117

6,978

1,464

639

29,003

3,070

3,940

1,531

2,990

2,647

1,728

515

6,990

1,964

1,171

554

3, 301

1,942

2,572

1,078

9,711

1,719

2,427

961

482

2,037

629

970

8,005

446

339

2,008

1,816

868

1, 923

605

24,654

21, 651

10, 729

2,223

2,497

5,375

94

733

2,041

1,359

604

78

962

443

313

176

30

66,250

44,610

12,936

1,632

2,329

4,743

25,539

3,315

204

17, 420

10,857

6,563

414

1,543

841

1,465

337

2,626

1,501

1,125

23,247

13,134

7,800

1,608

705

30,785

3,184

3,873

1,637

3,270

2,824

1,909

564

7,524

2,210

1,324

594

3, 396

2,160

2,661

1,179

10,485

1,979

546

2,519

997

510

2,248

641

1,045

8,927

408

364

2,184

2,197

934

2,154

686

24,526

21, 353

9,444

2,106

2,833

6,040

107

2,068

1,359

627

82

1,105

496

340

241

28

1952

69,522

46,935

13,419

1,769

2,246

5,153

26,449

3,2.50

202

18,345

11,622

6,723

256

1,608

848

1,577

363

2,786

1,593

1,193

25,382

14,266

8,611

1,736

769

30,947

3,393

3,815

1, 610

2, 934

2,615

1,832

616

7,874

2,453

1, 445

660

3,316

2,386

2,614

1,258

11,252

2,058

580

2,657

1,098

544

2,486

749

1,080

9,586

343

383

2,472

2,271

964

2.488

665

25,165

21,906

8,872

2,161

2,991

6,705

132

1,045

2,089

1,367

634

88

1,170

511

338

295

26

1953

70,606

47, 834

13,722

1,650

2,035

5,365

26,668

3,260

202

18, 528

11,925

6,603

161

1,671

859

1,611

376

2,973

1,697

1,276

27,485

15, 520

9,373

1,765

827

32,275

3,576

3, 985

1,678

2,862

2,550

2,015

674

8,285

2, 730

1, 560

724

3,271

2, 616

2, 690

1,344

12,200

2,137

604

2, 840

1,234

586

2,729

942

1,128

10,783

342

414

2,794

2, 379

1,007

3,144

703

29,619

26, 331

11,822

2,205

3,339

7,547

144

1,274

2.106

1,367

647

92

1,182

484

318

352

28

71,431

49,145

13,766

1,478

1,824

5,218

26,749

3,270

203

18,599

11,977

6,622

79

1,677

858

1,682

381

3,151

1,739

1,412

29,108

16,720

9,803

1,711

874

32,738

3, 637

4,033

1,703

2,653

2,390

2,152

698

8,870

3,017

1, 762

764

3,327

2, 693

2,520

1,389

13,049

2,163

595

3,109

1,406

634

2,962

1,056

1,124

11,663

574

2,947

2,515

1,088

3,346

726

29,328

26,177

11,347

2,027

3,418

8,007

153

1,225

2,031

1,313

623

95

1,120

427

26

1955

73,292

50,591

14,371

1,292

1,688

5,350

28,430

3,611

210

19,695

12,477

7,218

52

1,754

865

1,835

408

3,399

1,881

1,518

30,738

18,033

10,018

1,741

946

36,522

4,180

4,694

1,862

3,045

2,573

2.374

764

9,624

3, 300

1,984

857

3,483

2,966

2,942

1,498

14,014

2,473

685

3,189

1,508

653

3,229

1,090

1,187

12,993

676

510

3,240

2,775

1,174

3,867

751

35,341

32,179

15,800

2,454

3,651

8,770

162

1, 342

2,008

1,273

636

99

1,154

407

256

465

26

1956

76,875

53,308

15,062

1,198

1,669

5,638

29,719

3,746

218

20,648

12,892

7,756

61

1,816

876

1,920

434

3,726

2,040

1,686

32,767

19,854

10,146

1,744

1,023

38,875

4,432

4, 885

1,905

3, 332

2, 655

2, 543

819

10, 263

3, 606

2,210

912

3,535

3,239

3,187

1,615

15,293

2,869

814

3, 470

1,625

697

3, 518

1,055

1,245

14,520

625

578

3, 666

3,145

1,201

4,497

808

33,776

30, 559

13, 260

2,368

3,861

9,558

186

1,326

1,987

1,261

621

105

1,230

416

264

525

25

1957

81,641

57,092

15,589

1,227

1,659

6,074

29,985

3,749

228

20, 834

13,173

7,661

59

1,867

1,894

469

3,963

2,123

1,840

35,367

22,064

10,395

1,794

1,114

39,984

4,343

4,762

1,899

3,340

2,650

2,770

862

10,819

3,899

2,343

970

3,607

3,539

3,283

1,717

16,399

3,098

873

3, 693

1,705

734

3,884

1,064

1,348

15,736

602

644

3,863

3,565

1,278

4,901

883

36,345

33,054

14, 575

2,528

4,108

10, 220

214

1,409

1,990

1,240

638

112

1,301

404

279

593

25

Footnotes for this table follow table II-6 on pages 152 and 153.

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Federal Reserve Bank of St. Louis
PERSONAL INCOME AND OUTLAY

Table II-4.—Personal Consumption Expenditures, by Type of Product, 1946-57*—Continued

[Millions of dollars]

151

Line

97

98

99

100

101

102

103

104

105

IX. Recreation.

1. Books and maps (d. c.)

2. Magazines, newspapers, and sheet music (n. d. c.)__

3. Nondurable toys and sport supplies

 17

 (n. d. c.)

4. Wheel goods, durable toys, sport equipment, boats,

and pleasure aircraft17 (d. a).

5. Radio and television receivers, records, and musical

instruments (d. c).

6. Radio and television repair (s.)

7. Flowers, seeds, and potted plants (n. d. c.)

8. Admissions to specified spectator amusements

a. Motion picture theaters (s.)

b. Legitimate theaters and opera, and entertainments of nonprofit institutions (except

athletics) (s.).

c. Spectator sports

 I8

 (s.)

9. Clubs and fraternal organizations except insurance

 19

 (_s.).

10. Commercial participant amusements 20 (s.)

11. Pari-mutuel net receipts (s.) .

12. Other 2> (s.)

X. Private education and research.

1. Higher education 22 (s.)

2. Elementary and secondary schools

 22

 (s.).

3. Other 23 (s.)

XI. Religious and welfare activities 24 (s.)_

XII. Foreign travel and remittances—net_-

1. Foreign travel by United States residents (s.)

2. Expenditures abroad by United States Government

personnel (military and civilian) (n. d. c).

3. Personal cash remittances to foreign countries less

personal cash remittances to the United States by

foreigners (s.).

4. Less: expenditures in the United States by foreigners

(s.).

Total personal consumption expenditures

Durable commodities (d. c.)

Nondurable commodities (n. d. c.)

Services (s.)

1946

8,621

594

1,099

843

809

1,143

115

447

2,066

1,692

174

200

359

379

241

526

1,162

501

350

311

1,915

770

450

388

302

147,109

15,892

84,802

46,415

1947

9,352

536

1, 243

910

972

1,429

140

475

2,004

1,594

188

222

399

415

255

574

1,411

649

420

342

2,032

837

597

450

379

165,409

20,593

93,382

51,434

1948

9,808

588

1,374

1,079

1,479

174

483

1,918

1,503

182

233

438

436

256

603

1,553

713

458

382

2,227

994

727

417

220

370

178,313

22,723

98,737

56,853

1949

10,122

630

1,454

1,172

847

1,704

201

504

1,868

1,445

240

458

440

246

598

1,683

784

483

416

2,235

1,131

850

501

413

181,158

24,584

96,607

59,967

1950

11,278

677

1,495

1,396

878

2,457

281

524

1,775

1,367

185

223

467

463

237

628

1,801

817

531

453

2,364

1,082

920

444

458

195,013

30,351

99,801

64,861

11,704

778

1,573

1,663

904

2,264

350

582

1, 708

1,299

188

221

483

490

253

656

1,951

868

585

498

2,483

1,282

924

705

519

209,805

29,471

110,135

70,199

1952

12,257

790

1,689

1,709

994

2,373

389

634

1,646

1,233

192

221

506

510

323

694

2,109

925

650

534

2,696

1,623

1, 044

960

179

560

219,774

29,099

115,100

75,575

1953

12,892

831

1, 776

1, 694

1,093

2, 608

428

675

1, 594

1,172

200

222

525

545

367

7.56

2,244

967

710

567

2,778

2,126

1,174

1, 370

200

618

232,649

32,875

117,961

81,8)13

1954

13,256

806

1,825

1,624

1,174

2,741

475

687

1,660

1,210

225

225

549

565

362

788

2,389

1,022

774

593

2,988

2,175

1,263

1,337

205

630

238,025

32,398

119,328

86,299

1955

14,220

888

1,917

1,842

1,397

2,792

522

721

1, 700

1,217

251

232

582

615

375

869

2,597

1, 077

863

657

3,106

2,288

1,456

1,314

219

701

256,940

39,632

124,762

92,546

1956

15,161

1,006

1,954

2,008

1,575

2,872

585

770

1,741

1,225

276

240

627

668

408

947

2,848

1,170

951

727

3,441

2,399

1,625

1,301

225

752

269,400

38,369

131,382

99,649

1957

15,908

1,026

2,170

2,048

1,698

2,988

652

824

1,658

1,116

296

246

671

725

431

1,017

3,047

1,232

1,026

789

3,607

2,460

1,734

1,316

243

833

284,442

39,926

137,971

106,545

Line

77

78

79

80

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

Footnotes for this table follow table II-6 on pages 152 and 153.

Table II-5.—Personal Consumption Expenditures by Major Type, in Constant Dollars, 1946-57 l

[Billions of 1954 dollars]

Line

Total personal consumption expenditure

Durable goods, total

Automobiles and parts

 2

Other

Nondurable goods, total

Food and beverages

 3

Clothing and shoes

 4

Gasoline and oil

Other

Services, total

Housing

Household operation « ,

Transportation

 5

Other ,

1946

192.3

19.4

5.0

14.3

107.6

63.0

21.2

4.3

19.1

65.3

19.0

8.1

7.8

30.4

1947

195.6

23.3

7.4

15.9

105.3

61.1

20.2

4.6

19.3

67.0

20.6

8.7

7.7

,40.0

1948

199.3

24.6

8.2

16.4

105.1

60.0

20.4

5.0

19.7

69.6

21.9

9.1

7.7

30.9

1949

204.3

26.3

10.4

15.9

106.3

60.3

20.4

5.6

20.0

71.7

23.3

9.4

7.5

31.5

1

1950

216.8

32.1

13.8

18.3

109.2

61.1

20.9

6.0

21.2

75.5

24.8

10.2

7.5

33.0

1951

218.5

29.2

11.6

17.5

111.2

61.9

20.8

6.6

22.0

78.2

26.1

10.9

7.9

33.3

1952

224.2

28.5

10.6

17.9

115.0

63.4

21.8

7.1

22.6

80.8

27.3

11.2

8.1

34.1

1953

235.1

33.1

13.8

19.3

118.3

65.3

22.0

7.7

23.2

83.7

28.3

11.7

8.2

35.5

1954

238.0

32.4

13.4

19.0

119.3

66.2

21.9

8.0

23.2

86.3

29.1

12.1

7.9

37.1

1955

256.0

39.6

17.9

21.7

125.4

69.0

23.3

8.7

24.4

91.0

30.3

13.5

8.2

39.0

1956

263.7

37.9

14.9

23.0

130.2

71.7

23.9

9.2

25.4

95.6

31.8

14.6

8.3

40.9

1957

270.3

38.1

15.5

22.6

132.7

73.7

23.7

9.4

25.8

99.4

33.7

15.3

8.4

42.0

Line

9

10

11

12

13

14

1. Implicit price deflators are shown in table VII-13.

2. Consists of items VIII-1-a and VIII-1-b in table II-4.

3. Consists of items 1-1,1-2,1-3, and 1-4 in table II-4.

4. Consists of items II-l, II-3, and II-4 in table II-4.

5. Consists of service items included in this category in table II-4.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
152 NATIONAL INCOME AND PRODUCT TABLES

Table II-6.—Personal Consumption Expenditures by Major Type, Seasonally Adjusted Quarterly Totals at Annual Rates, 1946~47l

[Billions of dollars]

Line

Goods and services, total

Durable goods, total .

Automobiles and parts

Furniture and household equipment

Other

Nondurable goods, total

Food and beverages

Clothing and shoes

Gasoline and oil

Other

Services, total

Housing

Household operation

Transportation

Other

1946

I

137.3

12.7

2.3

7.3

3.2

80.8

46.3

18.0

2.7

13.7

43.9

13.2

6.6

4.7

19.3

II

143.0

14.9

3.3

8.3

3.3

82.6

47.2

18.0

3.0

14.5

45.5

13.6

6.5

5.0

20.4

III

152.7

17.4

4.6

9.4

3.5

87.7

50.7

19.0

3.1

14.9

47.5

14.0

6.7

5.3

21.5

IV

155.4

18.6

5.6

9.7

3.3

88.1

51.8

18.0

3.3

14.9

48.7

14.4

6.9

5.4

22.0

Year

147.1

15.9

3.9

8.7

3.3

84.8

49.0

18.2

3.0

14.5

46.4

13.8

6.7

5.1

20.8

I

159.4

19.1

5.6

10.1

3.4

90.7

53.1

18.4

3.4

15.9

49.6

14.7

7.1

5.4

22.3

II

163.9

20.3

6.4

10.6

3.4

93.0

54.4

18.5

3.6

16.5

50.6

15.1

7.3

5.5

22.7

1947

I II

167.2

20.8

6.2

11.2

3.4

94.2

55.0

18.9

3.7

16.6

52.2

15.8

7.5

5.5

23.3

IV

171.2

22.1

6.8

11.9

3.4

95.7

55.2

19.4

3.9

17.2

53.4

16.6

7.6

5.5

23.7

Year

165.4

20.6

6.3

11.0

3.4

93.4

54.4

18.8

3.6

16.6

51.4

15.6

7.4

5.5

23.0

1. Footnotes to table II-5 are relevant to this table also.

2. Consists of items V-l, V-2, V-3, V-4, and IX-5 in table II-4.

Table II-6.—Personal Consumption Expenditures by Major Type, Seasonally Adjusted Quarterly Totals at Annual Rates, 1952-531

[Billions of dollars]

Line

Goods and services, total

Durable goods, total

Automobiles and parts

Furniture and household equipment 2.

Other

Nondurable goods, total

Food and beverages

Clothing and shoes

Gasoline and oil

Other

Services, total

Housing

Household operation

Transportation

Other

1952

I

214.6

27.7

10.1

13.8

3.8

113.3

63.4

21.7

6.5

21.8

73.6

24.7

10.5

7.3

31.1

II

217.7

29.1

11.4

13.9

3.9

113.9

64.2

21.2

6.6

21.9

74.7

25.1

10.7

7.3

31.6

I II

219.6

27.5

9.3

14.2

4.0

115.9

64.7

22.1

6.8

22.3

76.2

25.6

10.9

7.5

32.2

IV

227.2

32.1

13.4

14.6

4.2

117.2

65.1

22.4

6.9

22.8

77.9

26.2

11.1

7.6

33.0

Year

219.8

29.1

11.0

14.1

3.9

115.1

64.4

21.9

6.7

22.2

75.6

25.4

10.8

7.4

32.0

1953

I

230.9

33.2

14.4

14.6

4.2

118.1

65.3

22.5

7.1

23.2

79.6

26.7

11.4

7.9

33.7

II

233.3

33.4

14.5

14.8

4.2

118.6

65.4

22.3

7.4

23.5

81.2

27.2

11.7

8.1

34.3

til

234.1

33.6

14.6

14.8

4.2

117.8

65.1

21.6

7.8

23.3

82.8

27.8

11.9

8.1

35.0

IV

232.3

31.2

12.6

14.6

4.0

117.4

65.2

21.3

7.9

23.0

83.7

28.3

11.8

8.1

35.5

Year

232.6

32.9

14.0

14.7

4.1

118.0

65.2

21.9

7.5

23.2

81.8

27.5

11.7

8.0

34.6

1. Footnotes to table II-5 are relevant to this table also.

2. Consists of items V-l, V-2, V-3 V-4, and IX-5 in table II-4.

Footnotes to table II-4.

•Consumer durable commodities are designated (d. c), nondurable commodities (n. d. c),

and services (s.) following group titles.

1. Expenditures for food (items 1-4) include consumer expenditures for alcoholic beverages

of the following amounts in millions of dollars: 1946, $8,360; 1947, $8,620; 1948, $7,900; 1949,

$7,680; 1950, $7,790; 1951, $8,060; 1952, $8,530; 1953, $8,610; 1954, $8,500; 1955, $8,700; 1956, $8,990;

and 1957, $9,140. Expenditures for food (items 1-4) excluding alcoholic beverages are as follows in millions of dollars: 1946, $40,6,58; 1947, $45,785; 1948, $48461; 1949, $46, 432; 1950, $47,448;

1951, $53,447; 1952, $55,839; 1953, $56,631; 1954, $57,713; 1955, $59,242; 1956, $62,247; and 1957,

$66,427.

2. Comprises purchases of meals and beverages from retail, service, and amusement establishments, hotels, dining and buffet cars, schools, school fraternities, institutions, clubs, and

industrial lunchrooms, and also tips.

3. Includes luggage.

4. Comprises watch, clock, and jewelry repairs, dressmakers and seamstresses not in shops,

costume and dross suit rental, and miscellaneous personal services related to clothing.

5. Space rent covers heating and plumbing facilities, water heaters, lighting fixtures, kitchen

cabinets, linoleum, storm windows and doors, window screens, screen doors, and window

blinds or shades, but excludes other furnishings, equipment, and related services—furniture,

stoves and ranges, refrigerators, repairs of furniture and appliances, fuel, electricity, etc.

6. Comprises transient hotels, tourist cabins, clubs, schools, and institutions.

7. Includes refrigerators and freezers, cooking ranges, dish washers, laundry equipment,

heating stoves, air conditioners, sewing machines, vacuum cleaners, and other small electric

appliances.

8. The principal house furnishings included are floor coverings, comforters, quilts, blankets,

pillows, picture frames, mirrors, art products, portable lamps, and clocks. Also includes

writing equipment and hand, power, and garden tools.

9. Consists mainly of textile house furnishings (except those specified in group V-4) including piece goods allocated to house furnishings use. Among other products covered are

lamp shades, brooms, and brushes.

10. Comprises maintenance services for appliances and house furnishings, moving and warehouse expenses, postage and express charges, premiums for fire and theft insurance on personal

property less claims paid, and miscellaneous household operation services.

11. Comprises services of osteopathic physicians, chiropractors, chiropodists and podiatrists,

private duty trained nurses, and miscellaneous curative and healing professions.

12. Comprises current expenditures (including depreciation) of nonprofit hospitals and

sanitariums and payments by patients to proprietary hospitals, sanitariums, and nursing

homes.

13. Premiums less claims: accident and health insurance, mutual accident and sick benefit

associations, and group hospitalization associations. Also covers administrative and medical

expenses of group health associations and student fees for medical care.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
PERSONAL INCOME AND OUTLAY 153

Table II—6.—Personal Consumption Expenditures by Major Type, Seasonally Adjusted Quarterly Totals at Annual Rates, 1948—51!

[Billions of dollars]

1948

I

174.7

21.6

6.9

11.3

3.4

98.1

56.5

19.5

4.2

17.8

55.0

17.0

7.9

5.7

24.5

II

177.5

22.6

7.1

12.1

3.4

98.7

56.4

20.0

4.4

17.9

56.2

17.3

7.9

5.8

25.2

III

180.2

23.6

7.7

12.5

3.5

99.0

55.7

20.3

4.5

18.5

57.6

17.8

8.0

6.1

25.7

IV

180.8

23.1

7.9

11.7

3.4

99.2

55.6

20.7

4.6

18.3

58.5

18.2

8.0

6.2

26.0

Year

178.3

22.7

7.4

11.9

3.4

98.7

56.1

20.1

4.4

18.1

56.9

17.6

7.9

6.0

25.4

1949

I

179.0

22.4

8.2

10.9

3.3

97.8

54.8

20.2

4.7

18.1

58.8

18.6

8.3

6.1

25.8

II

181.1

24.5

10.1

11.1

3.3

97.1

54.4

19.6

5.0

18.1

59.5

19.1

8.3

6.2

26.0

III

180.5

25.1

10.3

11.5

3.2

95.3

53. 6

18.5

5.1

18.0

60.1

19.5

8.2

6.1

26.3

IV

184.0

26.3

10.4

12.7

3.2

96.3

53.7

19.0

5.2

18.5

61.5

20.0

8.7

6.1

26. 6

Year

181.2

24.6

9.8

11.5

3.3

96.6

54.1

19.3

5.0

18.2

60.0

19.3

8.4

6.1

26.2

1950

I

185.7

26.8

11.0

12.6

3.3

96.2

53. 6

18. 9

5.2

18.6

62.6

20.5

9.0

6. I

27.0

II

189.9

27.9

12.2

12 A

3.3

97.7

54. 3

19.1

5.4

19.0

64.3

21.0

9.2

6.3

27.9

III

204.4

35.5

14.9

17.0

3.6

103.3

56.8

20.3

5.5

20.6

65.7

21.4

9.3

0.4

28.5

IV

200.1

31.2

13.8

14.0

3.5

102.0

56.3

20.1

5.5

20.1

66.9

21.9

9.6

6.5

28.8

Year

195.0

30.4

13.0

14.0

3.4

99.8

55. 2

19.6

5.4

19.6

64.9

21.2

9.3

6.3

28.1

I

211.5

33.0

13.4

15.9

3.7

110.2

61. 2

21.9

5.8

21.3

68.3

22.4

9.9

6.7

29.2

II

205.5

28.0

11.1

13.3

3.6

108.1

60.9

20.5

5.9

20.8

69.4

22 9

10.0

6.9

29.6

1951

III

208.8

28.5

11.1

13.7

3.7

109.5

61. 5

20.6

6.1

21.3

70.8

23.5

10.2

7.0

30.1

IV

213.4

28.4

10.6

14.0

3.8

112.7

62.3

21.6

6.3

22.4

72.3

24.2

10.4

7.1

30.6

Year

209.8

29.5

11.6

14.2

3.7

110.1

61.5

21.1

6.0

21.4

70.2

23.2

10.1

6.9

29.9

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Table II-6.—Personal Consumption Expenditures by Major Type, Seasonally Adjusted Quarterly Totals at Annual Rates, 1954-57 1

[Billions of dollars]

1954

I

233.7

31.2

12.4

14.7

4.1

117.9

65.4

21.8

7.9

22.8

84.6

28.6

11.9

8.0

36.0

II

236.5

32.2

13.2

14.8

4.2

118.8

65.8

21.8

7.9

23.2

85.5

28.9

12.0

7.9

36.7

I II

238.7

32.3

13.3

14.6

4.4

119.6

66.5

21.7

8.0

23.4

86.9

29.2

12.2

7.9

37.6

IV

243.2

33.9

14.5

15.0

4.4

121.0

67.2

22.4

8.2

23.3

88.3

29.7

12.5

8.0

38.1

Year

238.0

32.4

13.4

14.8

4.3

119.3

66.2

21.9

8.0

23.2

86.3

29.1

12.1

7.9

37.1

1955

I

249.4

38.2

17.8

16.0

4.4

121.2

66.2

22.7

8.4

23.9

90.0

30.1

13.0

8.2

38.7

II

254.3

39.1

18.1

16.2

4.8

123.7

67.5

23.2

8.7

24.3

91.6

30.5

13.2

8.3

39.5

I II

260.9

41.4

19.7

16.9

4.9

126.1

68.7

23.6

8.9

24.9

93.4

31.0

13.7

8.4

40.3

IV

263.3

39.8

17.4

17.2

5.1

128.1

69.4

23.9

9. 1

25.7

95.3

31.4

14.2

8.4

41.2

Year

256.9

39.6

18.3

16.6

4.8

124.8

67.9

23.4

8.8

24.7

92.5

30.7

13.5

8.3

39.9

1956

I

265.2

38.7

16.0

17.4

5.3

129.6

70.3

24.1

9.2

26.0

96.9

31.8

14.4

8.5

42.1

II

267.2

37.8

15.1

17.5

5.3

130.9

70.9

24.3

9.5

26.2

98.6

32.3

14.7

8.6

43.0

I II

269.7

37.5

15.0

17.1

5.3

131.6

71.3

24.6

9. 6

26.1

100.6

33.1

14.9

8.5

44.1

IV

275.4

39.5

16.5

17.7

5.4

133.4

72.5

24.8

9.9

26.2

102.5

33.8

15.1

8.7

44.9

Year

269.4

38.4

15.6

17.4

5.3

131.4

71.2

24.5

9.6

26.1

99.6

32.8

14.8

8.6

43.5

1957

I

279.8

40.2

17.3

17.5

5.4

135.5

73.6

24.8

10.2

26.9

104.1

34.4

15.3

8.9

45.5

II

282.5

39.5

16.7

17.3

5.4

137.1

75.3

24.3

10.2

27.3

105.9

35.1

15.6

9.0

46.2

I II

288.3

40.4

17.3

17.5

5.6

140.5

77.1

25.1

10.3

28.0

107.4

35.7

15.8

9.2

46.7

IV

287.2

39.6

17.1

17.0

5.5

138.8

76.2

24.4

10.2

28.0

108.7

36.3

16.2

9.0

47.s2

Year

284.4

39.9

17.1

17.3

5.5

138.0

75.6

24.6

10.2

27.5

106.5

35.4

15.8

9.0

46.4

lane

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Footnotes to table II-4—Continued.

14. Comprises total operating expenses of life insurance companies and fraternal and assessment associations, excluding payments to policy-holders and expenses allocated to accident

and health insurance.

15. Comprises total payments to labor unions minus cash benefits, employment agency

fees, employees' payments to professional associations, miners' expenditures (for explosives,

lamps, and smithing), money order fees, classified advertisements, net purchases from pawnbrokers and miscellaneous second-hand stores, and other personal business services.

16. Comprises baggage charges and coastal and inland waterway and ferry foot passenger

fares.

17. Groups IX-3 and IX-4 include games, toys, sporting, athletic, and photographic goods,

and related products. These commodities are divided roughly between the two groups on

the basis of durability.

18. Comprises professional baseball, football, and hockey, horse and dog race tracks, college

football, and other amateur spectator sports.

19. Comprises gross receipts less cash benefits of fraternal, patriotic, and women's organizations except insurance; and dues and fees of athletic, social, and luncheon clubs, and school

fraternities.

20. Comprises billiard parlors, bowling alleys, dancing, riding, shooting, skating, and

swimming places, amusement devices and parks, daily fee golf course greens fees, golf instruction, club rental, and caddy fees, sightseeing buses and guides, and private flying operations.

21. Comprises photo developing and printing, photographic studios, collectors' net acquisitions of stamps and coins, hunting dog purchase and training, sports guide service, veterinary

service, purchase of pets, camp fees, nonvending coin machine receipts minus payoff, and

other commercial amusements.

22. The estimates represent current expenditures (including depreciation) net of receipts

accounted for separately in consumer expenditures, such as receipts from meals, rooms, and

entertainments.

23. Comprises fees paid to commercial, business, trade, and correspondence schools; fees

for musical, dancing, and other instruction except athletics; and current expenditures (including depreciation) of foundations for education and research.

24. Comprises religious bodies, social welfare and foreign relief agencies, political organizations, museums and libraries, and foundations (except foundation expenditures for education

and research). The estimates represent current expenditures (including depreciation but

excluding relief payments within the United Stites), and are net of receipts accounted for

separately in consumer expenditures, such as receipts from meals, rooms, and entertainments.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
154 NATIONAL INCOME AND PRODUCT TABLES

Table II—7.—Personal Consumption Expenditures by Major Type, Quarterly, 1946—47 *

[Billions of dollars]

Line

Goods and services, total

Durable goods, total

Automobiles and parts

Furniture and household equipment.

Other

Nondurable goods, total

Food and beverages

Clothing and shoes

Gasoline and oil

Other

Services, total

Housing

Household operation

Transportation

Other

1946

I

32.3

2.7

.5

1.6

.6

18.6

10.9

3.8

.6

3.3

11.0

3.3

1.7

1.1

4.9

II

35.5

3.7

.8

2.1

.8

20.3

11.6

4.6

.8

3.3

11.5

3.4

1.6

1.3

5.2

I II

37.1

4.1

1.2

2.2

.7

21.2

12.9

4.1

.8

3.3

11.8

3.5

1.6

1.4

5.3

IV

42.3

5.4

1.4

2.8

/ 1-2

24.7

13.5

5.7

.8

4.6

12.1

3.6

1.7

1.3

5.5

Year

147.1

15.9

3.9

8.7

3.3

84.8

49.0

18.2

3.0

14.5

46.4

13.8

6.7

5.1

20.8

1947

I

37.6

4.2

1.4

2.2

.6

20.9

12.5

4.0

.7

3.7

12.4

3.7

1.9

1.3

5.6

II

40.6

5.1

1.6

2.7

.8

22.7

13.4

4.6

.9

3.8

12.8

3.8

1.8

1.4

5.8

I II

40.7

4.9

1.6

2.7

.7

22.8

14.0

4.0

1.0

3.7

13.0

4.0

1.8

1.5

5.7

IV

46.6

6.4

1.7

3.4

1.3

26.9

14.5

6.2

.9

5.3

13.3

4.1

1.9

1.4

5.9

Year

165.4

20.6

6.3

11.0

3.4

93.4

54.4

18.8

3.6

16.6

51.4

15.6

7.4

5.5

23.0

1. Footnotes to tables II-5 and II-6 are relevant to this table also.

Table II-7.—Personal Consumption Expenditures by Major Type, Quarterly, 1952-531

[Billions of dollars]

Line

1952

I

50.7

6.1

2.4

3.0

.7

26,1

15.0

4.4

1.4

5.2

18.6

6.2

2.9

1.7

7.8

II

54.1

7.4

3.2

3.3

.9

27.9

16.0

5.3

1.8

4.9

18.8

6.3

2.7

1.9

8.0

I II

53.4

6.6

2.4

3.4

.8

27.9

16.5

4.8

1.8

4.9

18.8

6.4

2.5

2.0

7.9

IV

61.5

9.0

3.1

4.3

1.6

33.1

16.9

7.4

1.7

7.1

19.4

6.5

2.8

1.9

8.2

Year

219.8

29.1

11.0

14.1

3.9

115.1

64.4

21.9

6.7

22.2

75.6

25.4

10.8

7.4

32.0

1953

I

54.7

7.4

3.4

3.2

.8

27.3

15.5

4.7

1.6

5.5

20.0

6.7

3.1

1.9

8.4

II

58.1

8.6

4.0

3.6

1.0

29.0

16.2

5.5

2.0

5.3

20.5

6.8

2.9

2.1

8.7

I II

57.2

8.2

3.7

3.6

.9

28.5

16.6

4.7

2.1

5.1

20.5

6.9

2.7

2.1

8.8

I V

62.6

8.8

2.9

4.3

1.5

33.1

16.9

7.1

1.9

7.2

20.8

7.1

2.9

2.0

8.7

Year

232.6

32.9

14.0

14.7

4.1

118.0

65.2

21.9

7.5

23.2

81.8

27.5

11.7

8.0

34.6

Goods and services, total

Durable goods, total

Automobiles and parts

Furniture and household equipment _

Other

Nondurable goods, total

Food and beverages

Clothing and shoes

Gasoline and oil

Other

Services, total

Housing

Household operation

Transportation

Other

1. Footnotes to tables II-5 and II-6 are relevant to this table also.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
PERSONAL INCOME AND OUTLAY 155

Table W—l .—Personal Consumption Expenditures by Major Type, Quarterly, 1948—51 ]

[Billions of dollars]

1948

I

41.4

4.8

1.7

2.5

.6

22.8

13.3

4.3

.9

4.2

13.8

4.2

2.1

1.3

6.2

II

43.9

5.7

1.8

3.1

.8

24.0

14.0

4.8

1.2

4. 1

14.2

4.3

2.0

1.5

6.4

III

44.0

5.7

2.0

3.0

.7

24.0

14.2

4.4

1.2

4.2

14.3

4.4

1.9

1.6

6.4

IV

49.1

6.6

2.0

3.4

1.3

27.9

14.6

6.6

1.1

5.6

14.6

4.6

2.0

1.5

6.5

Year

178.3

22.7

7.4

11.9

3.4

98.7

56.1

20.1

4.4

18.1

56.9

17.6

7.9

6.0

25.4

1949

I

42.0

4.9

1.9

2.4

.6

22.4

12.9

4.1

1.0

4.3

14.8

4.7

2.2

1.4

6.5

II

45.2

6.2

2.6

2.8

.8

24.0

13.5

5.0

1.3

4.1

15.0

4.8

2.1

1.6

6.6

III

44.2

6.2

2.8

2.7

.7

23.1

13.6

4.0

1.4

4.1

14.9

4.9

2.0

1.6

6.5

IV

49.8

7.4

2.5

3.6

1.2

27.1

14.1

6. 1

1.3

5.6

15.3

5.0

2.2

1.5

6.6

Year

181.2

24.6

9.8

11.5

3.3

96.6

54.1

19.3

5.0

18.2

60.0

19.3

8.4

6.1

26.2

I

43.8

5.9

2.6

2.7

.6

22.1

12.6

3.9

1. 1

4.4

15.7

5.1

2.4

1.4

6.8

II

47.2

7.1

3.1

3.2

.8

24.0

13.4

4.8

1.4

4.3

16.2

5.2

2.3

1.6

7.1

1950

III

50.0

8.8

4.0

4.1

.7

25.0

14.4

4.4

1.5

4.7

16.3

5.4

2.2

1.7

7.0

IV

54.0

8.6

3.3

4.0

1.3

28.7

14.8

6.5

1.3

6.2

16.7

5.5

2.4

1.6

7.2

Year

195.0

30.4

13.0

14.0

3.4

99.8

55.2

19.6

5.4

19.6

64.9

21.2

9.3

6.3

28.1

I

50.1

7.3

3.2

3.5

.7

25.5

14.4

4.8

1.3

5.0

17.2

5.6

2.7

1.6

7.3

II

51.0

7.2

3.1

3.3

.8

26.4

15.1

5.0

1.6

4.7

17.5

5.7

2.5

1.8

7.5

1951

I II

50.9

6.9

2.8

3.3

.8

26.5

15.6

4.4

1.6

4.8

17.5

5.9

2.4

1.8

7.4

IV

57.7

8.0

2.5

4.1

1.4

31.7

16.3

7.0

1.5

6.8

18.0

6.0

2.6

1.8

7.6

Year

209.8

29.5

11.6

14.2

3.7

110.1

61.5

21.1

6.0

21.4

70.2

23.2

10.1

6.9

29.9

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Table II—7.—Personal Consumption Expenditures by Major Type, Quarterly, 1954—57 1

[Billions of dollars]

1954

I

55.4

7.1

3.1

3.3

.7

27.0

15.5

4.3

1.8

5.4

21.3

7.2

3.3

1.9

9.0

II

59.0

8.2

3.8

3.5

1.0

29.3

16.3

5.6

2.1

5.3

21.5

7.2

2.9

2.0

9.3

III

58.1

7.6

3.2

3.6

.9

28.9

17.0

4.7

2.1

5.1

21.5

7.3

2.8

2.0

9.4

IV

65.5

9.5

3.3

4.4

1.7

34.1

17.4

7.4

2.0

7.3

21.9

7.4

3.1

2.0

9.4

Year

238.0

32.4

13.4

14.8

4.3

119.3

66.2

21.9

8.0

23.2

86.3

29.1

12.1

7.9

37.1

1955

I

59.2

8.7

4.4

3.5

.8

27.8

15.6

4.6

1.9

5.7

22.6

7.5

3.6

1.9

9.6

II

63.3

10.0

5.1

3.9

1.1

30.3

16.8

5.8

2.3

5.4

23.0

7.6

3.3

2.1

10.0

I II

63.6

9.8

4.7

4. 1

1.0

30.5

17.6

5.0

2.4

5.5

23.4

7.7

3.1

2.2

10.3

IV

70.9

11.1

4.1

5.0

2.0

36.2

18.0

8.0

2.2

8.1

23.6

7.9

3.6

2.1

10.1

Year

256.9

39.6

18.3

16.6

4.8

124.8

67.9

23.4

8.8

24.7

92.5

30.7

13.5

8.3

39.9

1956

I

63.1

8.8

4.0

3.8

1.0

29.9

16.6

5.0

2.1

6.2

24.4

8.0

4.0

2.0

10.4

II

66.0

9.6

4.2

4.2

1.2

31.7

17.5

5.8

2.5

5.9

24.7

8.1

3.6

2.2

10.8

III

66.0

8.9

3.6

4.2

1.1

31.9

18.3

5.3

2.5

5.8

25.2

8.3

3.4

2.2

11.3

IV

74.3

11.1

3.9

5.2

2.1

37.8

18.8

8.3

2.4

8.3

25.4

8.5

3.7

2.2

11.0

Year

269.4

38.4

15.6

17.4

5.3

131.4

71.2

24.5

9.6

26.1

99.6

32.8

14.8

8.6

43.5

1957

I

66.3

9.2

4.3

3.9

1.0

31.0

17.4

4.8

2.3

6.4

26.2

8.6

4.2

2.1

11.3

II

70.2

10.0

4.6

4.2

1.2

33.6

18.6

6.2

2.7

6.1

26.6

8.8

3.8

2.3

11.6

III

70.6

9.6

4.2

4.3

1.2

34.1

19.7

5.5

2.7

6.2

26.8

8.9

3. 6

2.4

11.9

IV

77.3

11.1

4.0

5.0

2.1

39.3

19.8

8.2

2.5

8.8

26.9

9.1

4.0

2.2

11.6

Year

284.4

39.9

17.1

17.3

5.5

138.0

75.6

24.6

10.2

27.5

106.5

35.4

15.8

9.0

46.4

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

466759 O—-59 11

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
156 NATIONAL INCOME AND PRODUCT TABLES

Table II-8.—Personal Income, by States and Regions, 1929-40

[Millions of dollars]

Line State and region 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940

1 Continental United States.

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

New England

Maine

New Hampshire.

Vermont

Massachusetts...

Rhode Island

Connecticut

Mideast

New York

New Jersey

Pennsylvania

Delaware

Maryland

District of Columbia.

Great Lakes

Michigan..

Ohio

Indiana. ..

Illinois

Wisconsin.

Plains

Minnesota

Iowa

Missouri

North Dakota.

South Dakota..

Nebraska

Kansas

Southeast.

Virginia

West Virginia...

Kentucky

Tennessee

North Carolina..

South Carolina .

Georgia

Florida

Alabama

Mississippi

Louisiana

Arkansas

Southwest.

Oklahoma

Texas

New Mexico.

Arizona

Rocky Mountain.

Montana..

Idaho

Wyoming..

Colorado. .-

Utah

Far West

Washington..

Oregon

Nevada

California. ...

85,661

7,125

479

322

225

3,862

596

1,641

27,465

14,105

3,714

7,531

240

1,260

615

20,235

3,803

5,178

1,973

7,280

2,001

7,584

1,539

1,419

2,275

253

288

811

999

9,990

1,054

794

1,020

982

1,046

470

1,015

753

856

570

866

564

4,254

1,077

2,752

171

254

1,614

312

225

151

642

284

7,394

1,166

647

79

5,502

76,780

6,588

460

302

205

3,588

540

1,493

25,580

13,186

3,495

6,904

203

1,176

616

17,328

3,186

4,472

1,681

6,235

1,754

6,802

1,423

1,255

2,073

208

248

713

882

8,558

933

712

853

850

929

421

897

683

705

407

753

415

3,648

2,399

142

223

1,485

271

222

132

603

257

6,791

1,043

593

76

5,079

65,597

5,881

396

263

168

3, 259

485

1,310

22,146

11, 379

3,071

5, 846

186

1, 060

604

14,431

2, 593

3,804

1,431

5,187

1,416

5,633

1,198

988

1,838

124

166

568

751

7,503

623

766

732

789

358

750

589

589

346

676

386

3,069

718

2,044

125

182

1,179

207

168

109

501

194

5,755

851

496

61

4,347

50,022

4,699

309

204

129

2,650

390

1,017

17,236

2,440

4,406

144

858

539

10,501

1,882

2,716

1,022

3,780

1,101

4,252

961

735

1,379

119

130

424

504

5,655

691

450

563

534

603

275

584

478

427

252

514

284

2,303

516

1,561

92

134

932

182

124

86

380

160

4,444

638

373

52

3,381

Territory of Hawaii..

47,122

4,413

307

200

121

2,442

379

964

16,019

8,322

2,172

4,122

140

787

476

9,737

1,668

2,631

982

3,434

1,022

3,781

832

633

1,276

98

89

382

471

5,777

696

456

554

560

678

305

602

440

440

266

493

287

2,276

530

1,524

94

128

162

106

84

380

156

4,231

601

355

48

3,227

53,482

4,836

342

229

132

2,652

402

1,079

17,726

9,070

2,364

4,721

157

891

523

11,544

2,167

3,087

1,184

3,945

1,161

4,156

964

673

1,394

119

122

352

532

6,835

780

551

624

667

809

360

712

537

550

339

573

333

2,573

590

1,720

112

151

1,031

197

179

94

397

164

4,781

707

432

52

3,590

60,104

5,152

358

238

146

2,804

433

1,173

18,992

9,669

2,565

5,049

174

943

592

13,378

2,554

3, 523

1, 397

4,484

1,420

5,468

1,214

1,052

1,602

178

202

552

7,559

870

604

720

728

894

399

789

592

584

361

638

380

2,961

1,950

136

176

1,248

260

189

116

477

206

5,346

797

464

65

4,020

68,363

5,799

420

258

165

3,127

484

1,345

21,654

10, 914

2,910

5,850

215

1,076

15,394

3,014

4,060

1,608

5,112

1,600

5,588

1,285

971

1,778

152

160

529

713

8,708

985

703

803

836

986

451

895

726

679

461

731

452

3,360

749

2,247

163

201

1,453

264

228

130

586

245

6,407

568

83

4,817

73,803

6,015

425

272

170

3,204

502

1,442

22,730

11, 339

3,068

6,207

236

1,164

716

17,109

3,389

4,432

1,838

5,743

1,707

6,415

1,469

1,270

1,928

209

209

548

782

9,450

1,081

754

930

918

1,088

482

946

813

723

459

786

470

3,810

2,548

178

223

1,466

284

212

146

586

238

6,808

1,008

591

77

5,132

68,433

5,530

396

259

161

2,954

465

1,295

21,188

10, 708

2,869

5,593

201

1, 118

15,060

2,891

3,863

1,605

5,116

1,585

5,926

1,359

1,136

1,809

180

205

533

704

8,861

1,022

678

819

841

1,018

456

897

801

677

426

790

436

3,684

797

2,498

171

218

1,441

284

216

136

564

241

6,743

995

580

80

5,088

72,753

5,940

417

274

172

3,162

500

1,415

22,347

11,152

3,100

5,933

241

1,186

735

16,428

3,215

4,265

1,767

5,566

1,615

6,165

1,432

1,183

1,914

202

219

521

694

9,525

1,127

723

855

886

1,111

511

967

892

704

444

834

471

3,820

805

2,600

184

231

1,494

294

226

145

578

251

7,034

1,058

629

90

5,257

218

78,522

6,398

444

285

184

3,385

534

1,566

23,949

11,713

3,433

6,417

270

1,3

807

17,818

3,610

4,606

1,8""

5,964

1,740

6,515

1,467

1,272

1,982

224

230

578

762

10,387

1,267

111

914

995

1,171

584

1,060

982

801

474

861

501

4,090

867

2,776

199

248

1,598

318

242

152

617

7,767

1,152

677

99

5,839

246

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
PERSONAL INCOME AND OUTLAY 157

Table II-8.—Personal Income, by States and Regions, 1941-57

[Millions of dollars]

1941

95,953

7,754

533

347

219

3,970

685

2,000

27,850

13,209

4,085

7,646

315

1,674

921

22,084

4,522

5,765

2,526

7,153

2,118

7,934

1,678

1,511

2,463

321

288

697

976

13,493

1,729

933

•

1,118

1,290

1,533

769

1,350

1,211

1,089

684

1,123

664

4,988

982

3,459

238

309

1,941

388

298

195

728

332

9,909

1,562

897

119

7,331

341

1942

122,417

9,522

712

409

261

4,711

882

2,547

33,172

15, 206

5,048

9,154

356

2,254

1,154

27,227

5,812

7,166

3,209

8.367

2,673

10,566

2,119

2,014

3,097

381

443

1,010

1,502

18,456

2,590

1,123

1,498

1,640

2,063

1,089

1,836

1,685

1,520

970

1,508

934

7,007

1,390

4,822

319

476

2,665

467

435

235

1,010

518

13,802

2,291

1,286

215

10,010

612

1943

148,409

10,892

876

446

293

5,392

1,028

2,857

38,906

17, 752

6,024

10, 678

404

2,709

1,339

32,748

7,269

8,641

3,899

9,772

3,167

12,352

2,404

2,321

3,553

506

479

1.226

1,863

22,856

2,945

1.285

1,854

2.108

2,515

1,262

2,354

2, 459

1.880

1.191

2,008

995

9,226

1,706

6,464

404

652

3,222

545

501

281

1,185

710

18,207

2.979

1,720

227

13, 281

778

1944

160,118

11,274

878

482

293

5,671

1,067

2,883

42,113

19. 483

6,520

11,470

424

2,870

1,346

34,901

7,570

9,160

4,116

10, 743

3,312

13,014

2,519

2,258

3,814

535

534

1,302

2,052

25,478

3,269

1,404

1,986

2,464

2,779

1,412

2,638

2,770

2,058

1,329

2,179

1,190

10,160

1,940

7,123

457

640

3,247

550

555

295

1,195

652

19,931

3,282

1,767

229

14,653

1,028

1945

164,549

11,372

856

513

319

5,823

1,067

2, 794

43,472

20, 599

6,558

11,641

431

2,829

1,414

35,511

7,215

9,326

4,271

11,188

3,511

13,780

2,788

2,460

3,984

549

600

1,407

1,992

26,380

3,375

1,519

2,067

2,592

2,892

1,428

2,724

2,895

2,161

1,304

2,153

1,270

10,272

1,958

7,169

491

654

3,405

568

546

302

1,317

672

20,357

3,190

1,740

233

15,194

1,009

1946

175,701

12,286

933

567

362

6,342

1,066

3,016

47,066

22, 712

6,886

12, 576

460

2,924

1,508

38,332

7,743

9,853

4,419

12, 487

3,830

15,341

3,213

2,978

4,459

596

637

1,446

2,012

26,965

3,336

1,683

2.235

2,634

3,198

1,484

2,744

2,813

2,162

1,254

2,106

1,316

10,578

2,000

7,400

509

669

3,718

657

595

339

1,429

698

21,415

3,208

1,874

249

16,084

719

1947

189,077

13,026

982

615

389

6,581

1,126

3,333

50,093

23, 997

7,268

13, 756

500

3,046

1,526

42,488

8, 832

10, 880

4, 925

13, 647

4,204

16,726

3,511

2,986

4,695

836

739

1,574

2,385

28,416

3,278

1,936

2,383

2,776

3,372

1.554

2.890

2,903

2,337

1,395

2,272

1,320

11,822

2,166

8,332

575

749

4,209

772

653

381

1,654

749

22,297

3,331

2.071

258

16,637

721

1948

207,414

13,949

1.079

660

420

7,072

1,191

3. 527

54,271

26, 060

7,876

14, 876

550

3,309

1,600

47,505

9,579

12,227

5,581

15, 472

4,646

19,239

4,028

3,934

5,321

802

888

1,851

2,415

31,233

3,565

2,176

2,719

3,006

3,620

1,755

3,088

3,053

2,542

1,564

2.601

1,544

12,919

2,359

9,054

649

857

4,545

865

706

418

1,760

796

23,753

3,609

2,261

273

17, 610

725

1949

205,452

13,829

1,061

663

414

7,066

1,173

3,452

54,505

26,144

7,930

14, 771

599

3,384

1,677

45,924

9,522

11, 736

5,398

14, 654

4,614

17,896

3,810

3,403

5, 219

678

690

1,699

2,397

30,943

3,626

2,050

2,624

2,992

3,596

1,700

3,098

3,210

2,429

1,391

2,789

1,438

13,816

2,432

9,778

717

889

4,552

791

706

440

1,794

821

23,987

3,641

2,235

276

17,835

685

19.50

225,473

15,180

1,087

699

448

7,799

1,287

3,860

59,448

28, 054

8,699

16, 477

689

3, 755

1,774

50,744

10, 803

12, 891

6, 006

15, 984

5,060

19,854

4,184

3,799

5,705

781

793

1,949

2,643

34,193

4,024

2,203

2,834

3,288

4,108

1,869

3,510

3,632

2,659

1,590

2,937

1,539

14,666

2,514

10,375

798

979

5,010

957

757

474

1,930

892

26,378

3,986

2,451

314

19, 627

689

1951

252,960

16,809

1,187

779

502

8,505

1,410

4,426

65,140

30,163

9,968

18, 038

754

4,323

1,894

57,557

12,103

14,892

6,951

17, 777

5,834

21,733

4,624

4,072

6,306

804

932

2,045

2,950

38,900

4,737

2,439

3,318

3,633

4,613

2,284

4,046

4,077

3,030

1,740

3,248

1,735

16,794

2,806

11,826

935

1,227

5,770

1,050

849

552

2,284

1,035

30,257

4,414

2,748

369

22, 726

796

1952

269,050

17,725

1,297

817

522

8,855

1,471

4,763

68,782

31,681

10, 708

18, 922

812

4,716

1,943

60,768

12,902

15,908

7,285

18, 579

6,094

22,859

4,796

4,272

6,660

755

815

2,179

3,382

41,528

5,130

2,540

3,524

3.796

4,768

2,468

4,337

4,543

3,223

1,862

3,540

1,797

18,172

3,060

12, 712

1,005

1,395

6,091

1,066

916

543

2,468

1,098

33,125

4,694

2,914

428

25,089

864

1953

283,140

18,697

1,298

862

542

9,333

1,545

5,117

72,612

33, 265

11,411

20,145

876

5,028

1,887

65,761

14, 516

17,316

8,012

19,669

6,248

23,168

5,049

4,110

7,000

771

881

2,106

3,251

43,153

5,220

2,547

3,644

4.050

4,885

2,543

4,460

5,041

3,344

1,889

3,721

1,809

18,670

3,161

13, 013

1,055

1,441

6,158

1,093

883

547

2,492

1,143

34,921

4,883

2,934

462

26,642

889

1954

285,339

18,857

1,312

894

543

9,403

1,515

5,190

73,231

34,189

11,622

19, 572

906

5,084

1,858

64,894

14,127

17, 241

7.623

19, 751

6,152

24,084

5,154

4,489

7, 055

783.

910

2,259

3,434

43,148

5,256

2,414

3,627

4,056

5,023

2,414

4,414

5.312

3,258

1,836

3,756

1,782

19,136

3,162

13,391

1,088

1,495

6,174

1,071

880

537

2,543

1,143

35,815

4,956

2,919

508

27, 432

898

1955

306,598

20,200

1,452

952

567

10,056

1,617

5,556

78,014

36,508

12, 351

20, 706

1,049

5,453

1,947

70,208

15, 785

18,589

8,251

20,968

6,615

24,683

5,450

4,260

7,579

872

861

2,203

3,458

47,154

5,603

2,586

3,782

4,347

5,535

2,604

4,918

6,088

3,708

2,065

3,985

1,933

20,513

3,341

14, 380

1,159

1,633

6,670

1,158

917

570

2,783

1,242

39,156

5,211

3,139

582

30,224

952

1956

327,947

21,581

1,526

1,007

603

10, 764

1,692

5,989

83,485

38,876

13,273

22,170

1,189

5,948

2,029

74,646

16,361

19,814

8,768

22,611

7,092

25,983

5,760

4,519

7,996

903

906

2,289

3,610

50,510

6,061

2,860

4,014

4,607

5,872

2,694

5,237

6,820

3,914

2,076

4,377

1,978

21,932

3,532

15,326

1,245

1,829

7,222

1,222

1,010

609

3,045

1,336

42,588

5,476

3,352

603

33,157

1,024

1957

345,272

22,687

1,568

1,065

626

11, 361

1,715

6,352

87,901

40,954

14,089

23, 327

1,200

6,242

2,089

77,559

16, 706

20, 748

9,110

23, 579

7,416

27,913

6,145

5,056

8,256

924

1,075

2,640

3,817

53,088

6,302

3,071

4,172

4,791

5,924

2,796

5,407

7,522

4,171

2,093

4,804

2,035

23,438

3,687

16,364

1.399

1,988

7,731

1,263

1,043

644

3,339

1,442

44,955

5.792

3,385

647

35,131

1,098

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
158 NATIONAL INCOME AND PRODUCT TABLES

Table II-9.—Per Capita Personal Income, by States and Regions, 1929-40

[Dollars]

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

State and region

Continental United States

New England

Maine ..- . .._ _ _

New Hampshire..- . - - . . _

Vermont

Massachusetts _ _ .

Rhode Island _._ _ . -

Connecticut

Mideast

New York

New Jersey _ _. . .

Pennsyl vania

Delaware

Maryland - - _ _._

District of Columbia

Great Lakes _.. -

Michigan

Ohio - ---

Indiana .. . _ _ . . . .

Illinois

Wisconsin

Plains

Minnesota

Iowa .- - - - - -- -

M issouri

North Dakot a

South Dakot a _. . . __- -

Nebraska - - --- - .._ _

Kansas

Southeast

Virginia __ _ _

West Virginia

Kentucky _ - ...__ -

Tennessee

North Carolina

South Carolina - -

Georgia - - - .._ .

Florida

Alabama

Mississippi

Louisiana - - - -

Arkansas - - - - - -

Southwest

Oklahoma

Texas

New Mexico _ _ _ .

Arizona

Rocky Mountain

Montana - - __ . - -

Idaho

Wyoming _ _ _

Colorado

Utah

Far West

Washington

Oregon

Nevada - - - _ __

California

Territory of Hawaii

1929

703

876

601

690

627

913

871

1,029

973

1,159

931

775

1,017

777

1,273

803

793

781

612

957

682

572

598

577

628

375

417

590

535

368

435

462

391

377

334

270

350

521

324

285

415

305

474

454

478

407

591

596

595

503

677

637

559

910

750

683

878

995

1930

624

806

575

648

569

844

787

926

890

1,043

859

716

849

719

1,262

684

659

671

519

816

595

510

552

507

569

305

358

517

468

313

384

411

325

325

293

241

308

464

266

203

358

223

401

368

411

333

514

538

503

497

584

580

505

816

665

620

826

889

1931

529

718

491

560

468

767

712

805

762

886

745

602

769

640

1,198

568

540

568

439

675

474

419

458

398

495

182

239

410

399

273

368

358

289

275

248

204

256

395

222

174

318

209

334

299

346

287

424

422

383

370

476

474

378

680

538

513

649

746

1932

401

572

379

430

360

622

576

621

588

681

592

451

588

511

1,051

411

394

404

311

489

364

315

363

295

368

176

188

306

268

204

282

258

210

197

187

157

199

314

161

126

239

155

250

216

262

209

315

331

337

270

374

356

309

520

403

384

542

574

1933

375

535

374

419

339

570

561

587

543

634

529

421

565

465

900

380

349

390

297

442

336

279

311

254

338

145

129

276

251

207

283

260

205

204

207

174

204

284

165

131

226

155

245

222

253

209

300

314

299

228

365

355

300

490

378

363

500

541

1934

423

583

413

477

370

616

596

654

598

684

578

482

628

521

921

449

452

457

357

508

380

306

358

268

368

177

179

255

285

242

314

311

229

240

245

205

240

339

205

165

260

177

276

247

284

243

353

362

361

378

403

369

314

546

439

439

531

592

1935

472

616

428

495

409

646

639

704

637

723

628

517

690

545

974

518

528

519

419

575

463

401

447

417

422

266

300

401

357

266

345

337

262

260

269

226

267

367

215

175

286

201

314

293

318

286

406

435

473

393

489

442

392

600

489

464

650

651

1936

534

691

500

536

462

718

706

804

723

810

713

599

850

617

1,095

593

616

597

480

652

519

411

470

387

468

229

240

390

381

304

386

389

290

300

295

253

301

440

248

222

325

239

354

317

363

333

454

500

477

461

542

538

465

703

568

554

822

760

1937

573

715

505

565

478

735

723

859

757

839

750

634

929

664

1,162

656

682

651

545

731

553

474

535

508

508

319

319

409

421

327

417

416

334

328

321

267

311

476

262

220

348

247

399

369

408

354

492

499

513

418

601

531

450

727

600

564

748

786

1938

527

656

470

534

452

677

670

769

701

792

700

562

782

633

1,096

574

572

565

474

650

512

439

494

455

478

278

316

402

382

302

387

371

292

298

296

249

290

452

243

200

346

226

384

343

396

333

468

487

514

421

553

507

450

708

586

544

762

764

1939

556

704

493

559

480

727

713

834

738

825

751

599

916

661

1,117

621

624

619

519

705

517

456

517

469

506

314

340

395

380

319

422

387

303

308

316

273

310

486

250

205

357

242

394

345

409

352

477

500

530

434

585

516

462

726

617

582

841

775

525

1940

595

757

523

579

507

784

743

917

790

870

822

648

1,004

712

1,170

667

679

665

553

754

554

483

526

501

524

350

359

439

426

343

466

407

320

339

328

307

340

513

282

218

363

256

418

373

432

375

497

531

570

464

608

546

487

785

662

623

876

840

577

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
PERSONAL INCOME AND OUTLAY 159

Table II-9.—Per Capita Personal Income, by States and Regions, 1941-57

[Dollars]

1941

719

903

620

707

629

902

921

1, 142

916

995

960

771

1, 141

873

1, 205

817

827

829

720

895

075

597

017

007

040

522

470

548

552

435

581

495

392

433

420

392

424

597

375

313

449

338

506

434

524

471

628

654

715

594

783

048

603

966

871

838

975

1,009

749

1942

909

1,104

850

849

757

1, 074

1,134

1,417

1,099

1, 109

1, 170

942

1.207

1, 120

1, 304

1,003

1,047

l,02S

913

1, 039

872

805

790

825

809

054

742

811

849

584

782

013

533

555

575

540

571

709

515

440

593

471

698

624

712

628

898

899

896

904

944

891

890

1,256

1, 203

1, 140

1,547

1,281

1,087

1

1943

1,102

1,276

1,087

967

902

1,261

1,184

1,590

1,307

1,379

1,432

1,133

1,438

1,292

1, 508

1,237

1,347

1, 259

1.132

1, 258

1,053

967

935

995

962

927

816

993

1,034

719

839

738

689

717

691

039

725

985

651

528

784

541

892

774

931

758

986

1,072

1,128

1,004

1,142

1,030

1,132

1,514

1,473

1,401

1,493

1,540

1,186

1944

1,194

1,313

1,091

1,048

930

1,300

1,261

1,601

1,432

1, 536

1,563

1,240

1,483

1,331

1, 561

1,316

1,387

1,322

1,198

1,392

1, 115

1,046

998

984

1,073

1, 002

950

1,072

1,164

814

898

822

759

856

765

724

835

1, 090

735

627

879

672

1,010

944

1.038

869

1,036

1,095

1,168

1,080

1,229

1,063

1,058

1,557

1,535

1,415

1,477

1,582

1,239

1945

1,234

1,336

1, 067

1,106

1,013

1, 351

1, 267

1,568

1,492

1, 644

1, 591

1, 268

1, 507

1,318

1, 635

1,346

1,319

1,349

1,248

1,470

1,186

1,112

1,100

1,069

1,134

1,009

1,047

1,163

1,159

856

946

890

794

902

821

743

882

1,151

780

627

892

722

1,030

967

1,051

926

1,107

1,168

1,191

1,114

1,258

1,183

1,128

1,535

1,425

1.381

1,585

1,580

1,328

1946

1,249

1,379

1,117

1,145

1,058

1,398

1,349

1,578

1,507

1, 691

1, 529

1,273

1,533

1,313

1, 689

1,349

1,318

1,311

1,193

1,530

1,209

1,164

1,174

1,207

1, 186

1,046

1,083

1,151

1,116

849

990

921

811

856

858

763

844

1,137

744

605

829

729

1,006

939

1,028

906

1,083

1,195

1,278

1,169

1.340

1,195

1,094

1,585

1,395

1,396

1,717

1,654

1,312

1947

1,316

1,438

1,150

1,208

1,099

1, 434

1.436

1, 693

1,553

1, 715

1,570

1, 348

1, 634

1,350

1,748

1,457

1.454

1,412

1,303

1,636

1,294

1,244

1,256

1,190

1,221

1,446

1,232

1,243

1,288

883

1, 002

1,029

850

876

894

779

884

1, 143

794

662

881

719

1,100

1.015

1,128

988

1,149

1,324

1,457

1,251

1,488

1,338

1,178

1,633

1,497

1,518

1,732

1,678

1,384

1948

1,420

1,511

1.229

1, 269

1,170

1, 513

1, 513

1,751

1,646

1,798

1,650

1,446

1, 763

1, 457

1, 905

1,592

1,542

1,552

1,440

1,809

1,402

1,414

1, 404

1,547

1,384

1,383

1,451

1,463

1,276

968

1,112

1,146

965

935

943

879

948

1,184

856

753

1,002

846

1,173

1,129

1,187

1,075

1,242

1,387

1,596

1,281

1,554

1,394

1.219

1,711

1,600

1,609

1,750

1,750

1,411

1949

1,382

1,474

1,175

1,244

1,122

1,490

1,464

1, 699

1,621

1, 756

1,622

1,422

1, 896

1, 453

2,078

1,514

1, 504

1,472

1, 364

1,690

1,361

1,292

1, 298

1,320

1,344

1,136

1,094

1,305

1,245

943

1, 101

1,062

921

925

919

838

932

1,203

810

667

1,059

780

1,246

1,155

1,283

1,113

1,245

1,346

1,390

1,239

1,588

1,385

1,224

1.687

1,587

1,562

1,758

1,725

1,354

1950

1,491

1,628

1,188

1,314

1,185

1, 662

1,644

1,908

1,761

1,883

1,792

], 566

2.153

1,588

2.198

1,661

1, 684

1, 614

1, 521

1,827

1,467

1,408

1,397

1,447

1,443

1, 260

1,213

1.468

1,374

1,009

1,222

1,095

958

995

1,009

881

1,016

1,288

867

729

1,089

805

1,286

1,133

1,340

1,163

1,297

1,428

1,606

1,279

1, 629

1,446

1,283

1,795

1,671

1. 602

1,938

1,848 [

1,403

1951

1,649

1,831

1,326

1.473

1,335

1, 850

1,810

2, 206

1,912

2. 001

1, 995

1,733

2, 257

1, 770

2,313

1,869

1, 855

1, 870

1,688

2. 030

1,694

1,529

1, 533

1, 551

1, 562

1,320

1,414

1, 549

1,512

1,128

1,394

1,215

1,116

1,081

1,114

1,043

1,145

1,380

989

792

1,176

908

1,415

1, 285

1,447

1,297

1,551

1,647

1,768

1,446

1,890

1,732

1,456

1,984

1,816

1,751

2,171

2,051

1,586

1952

1,727

1,917

1,452

1,530

1,403

1,919

1,855

2,334

1,995

2, 087

2,113

1, 790

2,360

1,892

2,347

1,939

1,932

1,958

1,758

2, 085

1, 751

1,604

1,578

1,617

1,664

1,222

1,239

1,652

1,716

1,194

1,474

1,274

1,191

1,136

1,149

1,111

1,208

1. 466

1, 045

851

1,250

967

1,497

1,398

1.519

1, 364

1,647

1,703

1, 780

1, 568

1, 841

1,804

1,502

2,078

1,912

1,824

2,339

2,144

1,721

1953

1,788

1,968

1,455

1, 576

1,441

1,963

1,893

2,418

2,076

2, 150

2,224

1,892

2,482

1, 986

2, 230

2,050

2,120

2, 032

1,920

2,185

1,770

1,609

1,646

1,546

1,721

1,228

1,331

1,578

1,641

1,232

1,481

1,278

1,224

1,219

1,165

1,132

1,246

1,556

1,081

874

1,296

988

1,528

1,459

1,550

1,394

1,610

1,672

1,786

1,487

1,861

1,735

1,528

2,126

1,971

1,811

2,357

2, 196

1,740

1954

1,770

1,944

1,434

1,620

1, 468

1.937

1, 852

2,371

2,053

2,174

2, 215

1, 804

2,422

1,939

2, 196

1,961

1,982

1,931

1. 796

2,156

1,694

1,652

1,649

1,691

1,712

1.241

1, 360

1,668

1,697

1,229

1,508

1,224

1,221

1,213

1,196

1,071

1,222

1,533

1,071

875

1.302

1,006

1,550

1,464

1,581

1,417

1,574

1,637

1, 733

1,484

1,814

1,694

1,498

2,113

1,961

1, 764

2, 330

2, 186

1,717

1955

1,866

2,084

1,578

1.722

1,549

2,086

1,955

2, 515

2,162

2, 305

2, 305

1,903

2,649

1,965

2,321

2,084

2,145

2,070

1,903

2,251

1, 786

1,660

1,710

1,571

1,805

1,365

1,266

1,585

1,679

1,319

1, 569

1,316

1,264

1,279

1,279

1,134

1,349

1,665

1,202

981

1.361

1,091

1,605

1, 525

1,640

1,463

1.584

1,707

1.844

1,506

1,833

1,784

1,554

2,234

1,990

1, 853

2, 376

2,330

1,731

1956

1,961

2,215

1,641

1,785

1,625

2,236

2,000

2, 697

2,297

2, 456

2,408

2,027

2,844

2,105

2,442

2,173

2,158

2,184

1,977

2,385

1,872

1,724

1,767

1,641

1,905

1,407

1,307

1,605

1,717

1,385

1, 636

1,456

1,339

1,347

1,333

1,157

1,412

1, 755

1,254

964

1,454

1,123

1,676

1,573

1,714

1, 535

1, 684

1,785

1,871

1, 616

1,927

1,870

1,619

2,348

2, 047

1,934

2,355

2, 461

1,787

1957

2,027

2,298

1,663

1,862

1, 605

2, 335

1,990

2.821

2,394

2, 578

2, .504

2,112

2,740

2, 150

2,514

2,214

2.141

2,255

2,010

2,447

1,920

1,823

1,850

1,800

1,940

1,435

1,531

1,818

1,787

1,427

1, 66(3

1,554

1,372

1, 383

1,317

1,180

1,431

1,836

1,324

958

1,566

1,151

1,752

1,619

1,791

1,686

1,750

1,865

1,896

1, 630

2, 038

1, 996

1,694

2,407

2,128

1,914

2.423

2,523

1,821

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
160 NATIONAL INCOME AND PRODUCT TABLES

Table II—10.—Disposable Personal Income, Total and Per Capita, by States and Regions, Selected Years, 1929—55

Line State and region

Continental United States..

New England

Maine

New Hampshire..

Vermont

Massachusetts

Rhode Island

Connecticut

Mideast.

New York

New Jersey

Pennsylvania

Delaware

Maryland

District of Columbia..

Great Lakes

Michigan...

Ohio

Indiana

Illinois

Wisconsin..

Plains.

Minnesota

Iowa

Missouri __.

North Dakota..

South Dakota..

Nebraska

Kansas

Southeast.

Virginia

West Virginia...

Kentucky

Tennessee

North Carolina..

South Carolina..

Georgia

Florida

Alabama

Mississippi

Louisiana

Arkansas

Southwest.

Oklahoma

Texas

New Mexico..

Arizona

Rocky Mountain.

Montana. .

Idaho

Wyoming.

Colorado. .

Utah

Far West.

Washington.

Oregon

Nevada

California

Territory of Hawaii..

1929

83,020

6,901

467

315

220

3,724

577

1,598

26,361

13,381

3,593

7,332

222

1,230

603

19,636

3,673

5,037

1,934

7,050

1,942

7,402

1,494

1,385

2,221

247

281

797

977

9;785

1,032

782

1,000

963

1,021

462

998

727

839

561

848

552

4,169

1,056

2,699

167

247

1,575

305

219

148

625

278

7,191

1,138

627

77

5,349

Total (millions of dollars)

1950

75,924

6,169

432

275

178

3,261

515

1,508

22,952

11,142

3,325

6,199

232

1,265

789

17,310

3,502

4, 475

1,854

5,804

1,675

6,336

1,422

1,236

1,928

218

224

564

744

10,094

1,232

758

893

970

1,134

572

1,031

937

782

464

834

487

3,985

844

2,708

193

240

1,552

311

236

148

595

262

7,526

1,124

658

95

5,649

239

1946

157,003

10,874

859

515

333

5, 562

951

2,654

41,246

19, 645

6,129

11,213

383

2, 554

1,322

34,245

6,938

8,822

3,998

11,039

3,448

13,950

2,898

2,737

4,045

545

595

1, 307

1,823

24,826

3, 080

1, 558

2,060

2,428

2,971

1,387

2, 508

2,517

1,994

1,181

1,910

1,232

9,588

1, 831

6,688

464

605

3,364

601

543

309

1,268

643

18,910

2,882

1,666

209

14,153

639

204,729

13,769

1,012

644

416

6,996

1,170

3. 531

53,327

24, 938

7,899

14,991

565

3,335

1,599

46,020

9,776

11,711

5,515

14, 438

4,580

18,192

3,787

3,494

5,233

718

742

1,803

2,415

31,722

3, 699

2, 057

2,612

3,056

3,832

1,749

3,255

3,329

2,471

1,511

2,706

1,445

13,388

2,293

9,459

736

900

4,584

884

694

435

1,744

827

23,727

3,631

2,205

276

17,615

622

1953

247,752.

16,306

1,165

756

487

8,096

1, 359

4,443

62,559

28, 371

9.968

17, 584

695

4,303

1,638

57,194

12, 540

15,023

7,132

17,059

5,440

20,485

4,439

3,668

6,148

694

807

1,868

2,861

39,001

4,639

2,313

3,260

3,664

4,435

2,331

4,052

4,496

3,037

1,764

3, 343

1, 667

16,532

2,811

11,499

937

1, 285

5,433

975

790

479

2,167

1, 022

30,242

4,277

2,537

382

23, 046

1955

271,240

17,789

1,333

851

512

8,811

1,431

4,851

67,981

31, 495

10, 928

18, 272

834

4,742

1,710

61,871

13,873

16, 348

7,388

18, 466

5,796

22,108

4,819

3, 831

6,772

802

795

1,989

3,100

42,902

5,025

2,354

3,400

3,970

5,079

2,403

4,494

5, 471

3,387

1,937

3, 595

1,787

18,405

3, 008

12,893

1,039

1,465

5,941

1,041

826

507

2,449

1.118

34,243

4,631

2,750

495

26, 367

851

Per capita (dollars)

1929

682

849

586

675

613

881

844

1,003

934

1,099

901

754

941

759

1,248

780

766

760

600

927

662

558

581

563

613

366

407

580

523

360

426

455

384

370

326

266

344

503

317

281

407

298

464

445

468

581

582

490

664

620

547

885

732

662

856

967

1940

575

730

509

559

490

755

716

883

757

828

796

626

862

688

1,143

648

659

646

.540

734

533

469

510

487

509

341

349

429

416

333

453

397

312

330

317

301

331

489

275

213

352

249

407

363

421

363

481

515

557

452

592

527

475

761

646

606

841

813

561

1946

1,116

1,221

1,029

1,040

974

1,226

1,204

1, 389

1,320

1,462

1,360

1,135

1.277

1,147

1,480

1,205

1,181

1,174

1,080

1,352

1,088

1,058

1, 059

1,109

1,076

956

1,012

1,041

1,011

782

914

852

747

789

797

713

771

1,018

686

570

752

683

912

859

929

826

979

1,082

1,169

1,067

1,221

1,060

1,008

1,399

1,253

1,241

1,441

1,455

1,166

1950

1,354

1,477

1,106

1,211

1,101

1,491

1,494

1,745

1,579

1,674

1,627

1,425

1.766

1,411

1,981

1,506

1,524

1,466

1,397

1,650

1,328

1,290

1,264

1,331

1,323

1,158

1,135

1,358

1,256

936

1,123

1,023

883

925

942

825

942

1,181

806

693

1,003

756

1,174

1,034

1.221

1,073

1,192

1,306

1,483

1,172

1, 495

1,306

1,190

1,614

1,522

1,441

1,704

1,659

1,267

1953

1,565

1,716

1,306

1,382

1,295

1,703

1, 665

2,100

1,789

1,834

1,943

1, 652

1,969

1,699

1,936

1,783

1,831

1,763

1,709

1,895

1,541

1,422

1,447

1,379

1, 511

1,105

1,219

1.399

1,444

1,113

1,316

1,161

1,095

1,103

1,057

1,037

1,132

1,388

982

816

1,164

910

1,353

1,298

1,369

1,238

1,436

1,475

1,593

1,330

1,629

1,509

1,366

vl,841

1,727

1,566

1,949

1,899

1,532

1955

1,651

1,835

1,449

1.539

1,399

1,828

1,730

2,196

1,884

1,988

2,039

1,680

2,106

1,709

2,038

1,836

1,885

1,820

1,704

1,982

1,565

1,487

1,512

1,413

1,613

1,255

1,169

1,431

1,505

1,200

1,408

1,198

1,137

1,168

1,174

1,046

1,233

1,496

1,098

921

1,228

1,009

1,440

1,373

1,470

1,312

1,412

1,521

1,658

1,356

1,630

1,570

1,399

1,954

1,769

1,623

2,020

2,033

1,547

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
PERSONAL INCOME AND OUTLAY 161

Table II—11.—Distribution of Consumer Units and Their Family Personal Income by Income Brackets, Selected Years, 1944—56

Line Family personal income

(before income taxes)

Under $1,000

$l,000-$l,999

$2,000-$2,999

$3,000-13,999 .. .

$4,000-$4,999

$5,000-$5,999

$6,000-$7,499

$7,500-$9,999 .. .

$10,000-$14,999

$15,000-$19,999

$20,000-$24,999

$25,000-$49,999

$50,000 and over

Total

Average (mean) family

personal income.

Number of families and unattached individuals (thousands)

1944 1946 1947 1950 1951 1952 1953 1954 1955 1956

4,352

8,108

8,762

7,723

4,535

2,515

2,259

1,385

707

246

108

140

40

40,880

3,826

7,606

8,791

8,590

5,364

3,065

2,547

1,751

1,070

332

143

191

54

43,330

3,748

7,370

8,459

8,628

5,725

3,474

3,151

2,170

1,199

386

167

208

55

44,740

3,861

7,464

8,091

8, 586

7,054

4, 694

3,836

2,758

1,536

414

218

294

84

48,890

3,227

6,022

7,164

8,192

7, 455

5,580

5,323

3,390

M

523

274

336

95

49,480

3,282

5,687

6, 541

7,636

7,631

6, 072

5,801

4,121

2,041

598

316

384

100

50,210

2,956

5,554

6,364

7,061

7,117

3,071

5,889

6,509

7,291

7,118

6,152 6, 032

6, 379 6, 284

4, 768' 4, 734

2,636

734

383

98

50,510

2, 661

745

313

397

106

51,150

2,918

5,327

6,272

7,275

7,117

6, 363

6, 940

5,186

3,017

852

356

433

114

2,688

4,954

5,871

6,784

6, 941

6,540

7, 416

6, 042

3, 545

2, 019

52,170 52,800

Aggregate family personal income (millions of dollars)

1944 1946 1947 1950 1951 1952 1953 1954 1955 1956

2,390

12, 338

21,938

26,960

20, 261

13, 739

14, 942

11,802

8,483

4, 215

2, 395

4, 651

3,607

147,721

$3, 614

2,017

11, 570

22, 007

29,906

23, 956

16, 725

16, 833

14, 905

12, 784

5,692

3,165

6,308

4,837

170,

$3, 940

1,973

11,231

21,176

30,045

25, 583

18, 957

20, 812

18,454

14, 300

6,586

3,700

6,879

4,902

$4,126

1,943

11, 333

20, 273

29,983

31, 533

25,603

25, 578

23, 364

18, 310

7,083

4,826

9,743

7,690

$4, 444

1,1

9,1

17,945

28, 696

33, 552

30, 502

35, 596

28, 531

22,617

8,933

6,063

11,097

8,356

$4, 904

1,688

8,627

16,411

26, 792

34, 305

33, 200

38,759

34, 660

24, 212

10, 214

] 2, 633

8,675

705 184,598 217,262 242,652 257,162 272,186 273,956 291,905 312,255

$5,122 $5,595 $5,914

1,518

8,438

15, 998

24,817

32, 057

33, 702

42,611

40, 707

31,561

12, 557

6,821

12, 793

8,606

$5, 389

1,571

8,951

16, 345

25,615

32,055

33,033

41, 947

40, 333

31, 856

12, 749

6,931

13, 294

9,276

$5, 356

14, 528

10,118

Line

9

10

11

12

13

14

15

Table 11-12.—Distributions of Nonfarm Families, Farm Operator Families, and Unattached Individuals and Their Family Personal Income,

by Income Brackets, 1953-56

Line

Line

Family personal income (before income taxes; )

Under $1,000..

$l,000-$l,999_-

$2,000-$2,999..

$3,000-$3,999__

$4,000-$4,999_ _

$5,000-$5,999__

$6,000-$7,499. _

$7,500-$9,999- -

$10,000-$14,999_-

$15,000-$19,999..

$20,000-$24,999_.

$25,000-$49,999_.

$50,000 and over

Total .

Nonfarm families

1953

Farm operator families

1954 1956

Unattached individuals

1953 1954 1955 1956

Number (thousands)

408

1,955

3,216

4,872

5,852

5,444

5,848

4,399

2,420

672

280

347

89

35,802

513

2,306

3,367

5,122

5,872

5,344

5,769

4,374

2,452

686

286

361

97

36,549

471

1,848

3,178

5,035

5,824

5,613

6,389

4,809

2,799

791

327

397

104

37,585

433

1,663

2,891

4,523

5,554

5, 704

6,806

5,632

3,307

1,873

38,386

530

1,145

1,019

804

569

399

347

250

158

44

18

21

4

5,308

526

1,130

1,000

787

557

387

335

242

152

42

18

21

4

5,201

973

775

546

385

338

244

154

43

18

5,085

462

1,035

939

752

538

390

347

251

160

90

4,964

2,019

2,454

2,129

1,385

697

309

184

119

57

17

10

15

5

9,400

2,032

2,454

2,142

1,381

689

302

180

118

56

17

15

5

9,400

1,948

2,393

2,122

1,464

747

365

213

133

65

18

11

16

5

9,500

1,794

2, 255

2,041

1,509

849

446

263

159

78

56

9,450

Family personal income (before income taxes)

Under $1,000..

$l,000-$l,999__

$2,000-$2,999__

$3,000-$3,999_.

$4,000-$4,999._

$5,000-$5,999_ _

$6,000-$7,499__

$7,500-$9,999._

$10,000-$14,999..

$15,000-$19,999..

$20,000-$24,999_.

$25,000-$49,999...

$50,000 and overTotal

Average (mean) family personal incomeAggregate family personal income (millions of dollars)

198

3,037

8.186

17, 236

26, 402

29,838

39,087

37, 557

28,990

11, 512

6,201

11, 567

7,812

227,623

$6,358

246

3,581

8,569

18,118

26,490

29,278

38, 524

37,266

29, 361

11, 735

6,331

12, 095

8,478

230,072

$6, 295

226

2,874

8,100

17, 838

26, 315

30, 791

42, 778

41,057

33.563

13, 561

7,245

13,291

9,231

246,870

$6,568

201

2,591

7,357

15, 994

25, 018

31,287

45. 619

48,038

39, 642

1

\ 49,978

J

265,725

$6, 922

363

1,730

2,537

2,807

2,555

2,183

2,307

2,137

1,890

753

406

719

340

20,727

$3,905

360

1,704

2,483

2,740

2,497

2,117

2,229

2,070

1,826

722

392

694

349

20,183

$3,881

342

1,633

2,407

2,690

2,444

2,104

2,250

2,085

1,843

732

399

701

376

20,006

$3,934

318

1.557

2,327

2,615

2,410

2,129

2,310

2,150

1,916

1

} 2,298

1

J

20,030

$4,035

957

3,672

5,275

4,774

3,100

1,680

1,218

1,013

680

293

213

507

454

23,836

$2, 536

965

3,666

5,293

4,757

3,068

1,638

1,194

998

669

292

208

505

448

23,701

$2, 521

912

3,573

5,264

5,063

3,328

1,976

1,414

1,129

767

313

242

537

511

25,029

$2,635

861

3,354

5,058

5,232

3,770

2,422

1,740

1,351

925

1, 787

26,500

$2,804

Line

1

2

3

4

5

6

7

Table 11-13.—Distribution of Family Personal

Quintile (consumer

units ranked by

income)

Lowest

2

3

4.

Highest

Total

Top 5 percent

Percent distribution of family personal income

1944

4.9

10.9

16.2

22.2

45.8

100.0

20.7

1947

5.0

11.0

16.0

22.0

46.0

100.0

20.9

1950

4.8

10.9

16.1

22.1

46.1

100.0

21.4

1953

4.9

11.3

16.6

22.5

44.7

100.0

19.9

1956

5.0

11.3

16.5

22.3

44.9

100.0

20.1

Income Among Quintiles of Consumers Units

Mean family personal income

1944

$882

1,979

2,920

4,014

8,272

3,614

14, 963

1947

$1,023

2,275

3,308

4,542

9,483

4,126

17, 226

1950

$1, 056

2,418

3,579

4,911

10,254

4,444

19,066

1953

$1,322

3,038

4,471

6,072

12,041

5,389

21,481

1956

$1, 465

3,345

4,876

6,617

13, 266

5,914

23,794

, Selected Years, 1944-56

Lower income limit of quintile

1944

$1, 510

2,450

3,410

4,800

8,240

1947

$1, 730

2,800

3,830

5,470

9,560

1950

$1, 810

3,020

4,160

5,850

10,200

1953

$2,260

3,770

5,180

7,160

12, 320

1956

$2, 510

4,120

5,660

7,790

13,490

Line

1

2

3

4

5

6

7

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HI. Government Receipts and Expenditures*

PAGE

III—1. Federal Government Receipts and Expenditures, 1946-57 (8 and 9) 164

III—2. State and Local Government Receipts and Expenditures, 1946-57 (8

and 9) 165

III—3. Government Receipts and Expenditures, Seasonally Adjusted Quarterly

Totals at Annual Rates, 1946-57 ' 166

III—4. Government Receipts and Expenditures, Quarterly, 1946-57 168

III-5. Social Insurance Funds, 1946-57 (10) 170

III—6. Contributions for Social Insurance, 1946-57 (34 and 35) 170

III—7. Government Transfer Payments to Persons, 1946-57 (36) 171

111-8. Government Expenditures by Type of Function, 1952-57 172

111-9. Object Breakdown of Government Purchases of Goods and Services,

Selected Functions, 1952-57 " 178

III—10. Relation of Federal Government Receipts and Expenditures in the National

Income Accounts to the Budget, 1952—57 178

111-11. Relation of State and Local Government Receipts and Expenditures in

the National Income Accounts to Bureau of Census Data, Fiscal Years

1952-56 179

*Figures in parentheses refer to corresponding tables in the 1954 National Income supplement.

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164 NATIONAL INCOME AND PRODUCT TABLES

Table III-l.—Federal Government Receipts and Expenditures, 1946-57 l

[Millions of dollars]

Line

Receipts.

Personal tax and nontax receipts before refunds.

Income taxes.

Estate and gift taxes.

Other taxes

 2

Nontaxess

Less: Tax refunds

Equals: Personal tax and nontax receipts.

Corporate profits tax accruals

Indirect business tax and nontax accruals before refunds

Excise taxes

Liquor

Tobacco

Other

Customs duties

Capital stock tax

Nontaxes

 4

Less: Tax refunds

Equals: Indirect business tax and nontax accruals..

Contributions for social insurance

Expenditures

Purchases cf goods and services.-

Compensation of employees.

New construction

Other purchases

Less: Government sales

Transfer payments..

To persons.

Foreign (net)

 5

~

Grants-in-aid to State and local governments

 6

_

Net interest paid

Interest paid

Less: Interest received.

Subsidies less current surplus of government enterprises

 7

...

Surplus or deficit (—) on income and product account.

1946

39,200

18,815

17,987

734

1

93

1,653

17,162

8,649

7,975

7,267

2.691

1,219

3,357

503

205

79

7,896

5, 493

37,014

20, 582

14, 545

931

7,801

2,695

9,535

9,214

321

1,108

4,170

5,217

1,047

1,619

2,186

1947

43,311

21,323

20,446

830

47

1,673

19, 650

10, 679

7,943

7,297

2,330

1,267

3.700

436

210

69

7,874

5,108

31,135

15, 650

9,343

951

6,483

1,127

9,009

8,887

122

1,738

4,167

5,230

1,063

571

12,176

1948

43,411

20,783

19.825

900

58

1,786

18.997

11,813

8,173

7,501

2,177

1,312

4,012

410

262

83

8,090

4,511

35,414

19,306

8,895

1,187

9,727

503

9,213

7,652

1,561

4,264

5,354

1,090

645

7,997

1949

39,062

18, 562

17, 751

754

57

2,368

16,194

9,773

8,230

7,561

2,204

1,320

4,037

381

72

8.158

4,937

41,599

22,241

9,966

1,488

10,969

182

11, 992

8, 754

3,238

2,228

4,400

5,611

1,211

738

-2,537

1950

50,216

19,888

19,167

659

62

1.709

18,179

17,098

9,099

8,252

2,419

1,348

4,485

549

298

67

9,032

5,907

41,027

19, 348

10, 690

1, 625

7,144

111

13, 675

10,884

2,791

2,339

4,509

5,804

1,295

1,156

9,189

64,462

28, 078

27,247

751

1,800

26, 278

21, 569

8,677

2,459

1,447

4,771

591

330

68

9, 530

7,085

58,045

38, 768

16,193

2,982

19, 902

309

10,810

8,663

2,147

2,478

4,709

5,996

1,287

1,280

6,417

1952

67,707

33, 301

32,370

850

81

2,136

31,165

18,639

10, 593

9,622

2,726

1,663

5,233

582

389

68

10, 525

7,378

71,613

52,854

18,837

4,186

30,102

271

10,384

8,906

1,478

2,635

4,729

6,290

1.561

1,011

-3,906

1953

70,341

34,976

33, 981

922

73

2,617

32,359

19, 419

11, 276

10, 215

2,820

1,614

5,781

472

82

11,194

7,369

77,715

57,964

18, 509

4,151

35,618

314

11,252

9,669

1,583

2,811

4,846

6,637

1,791

842

-7,374

1954

63,777

32,055

31,067

921

67

2,900

29,155

16, 455

10,143

9,048

2,706

1,543

4,799

565

530

88

10,055

8,112,

69,570

47, 548

17,683

3, 445

26, 735

315

12,969

11,607

1,362

2,882

5,006

6,887

1,881

1,165

-5,793

1955

72,757

34,621

33, 572

67

3,100

31, 521

20,869

11,136

2,806

1,596

5,464

679

591

96

11,040

9,327

68,915

45, 282

18, 240

2,800

24,600

358

14,028

12, 514

1,514

3,050

4,920

6,863

1,943

1,635

3,842

1956

78,737

38,494

37,151

1,281

62

3,250

35,244

4\, 381

11, 726

10,370

3,044

1,638

5,688

743

613

125

11,601

10, 511

71,900

45, 721

18,841

2,772

24,439

331

14,895

13,475

1,420

3,257

5,238

7,596

2,358

2,789

6,837

1957

82,458

40,895

39,385

1,448

62

3,506

37,389

20,655

12, 403

10,926

2,902

1,704

6,320

787

191

12, 212

12,202

79,582

49,381

19,427

3,018

27,358

422

17,347

15,896

1,451

4,087

5,632

8,397

2,765

3,135

2,876

Line

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

81

32

34

35

1. Includes transactions of social insurance funds, which can be separated by use of the

data furnished in table III-5. For an explanation of the treatment of Government enterprises, see Part II of 1954 National Income supplement. For a list of these enterprises, see

footnotes to the table on industrial classification in the Introduction to Part III of the 1954

supplement.

2. Consists of dividends tax and automobile use tax.

3. Consists mainly of charges for Government products and services not accounted for under

Government enterprises; of fines and penalties; and of donations. Receipts from the sale of

surplus property are not included.

4. Consists mainly of charges for Government products and services not accounted for

under Government enterprises, including rents and royalties; and of fines and penalties.

Receipts from the sale of surplus property are not included.

5. Consists of net Government grants in cash, net Government pensions and other transfers, and net income on investments paid by Government.

6. Includes shared receipts as well as grants-in-aid. The latter consist of highway grants,

education grants (agricultural research and education, vocational education, and rehabilitation, defense training and research programs, and veterans' postwar training programs),

public assistance grants (mainly categorical assistance under the Social Security program),

grants for the administration of the Unemployment Compensation program and of the U. S.

Employment Service, Public Health grants, the Federal contribution to the District of Columbia, and miscellaneous other grants.

7. Subsidies reflected consist of Government payments to farmers, payments for the exportation and diversion of surplus agricultural commodities, shipping subsidies, and subsidy

payments to air carriers.

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GOVERNMENT RECEIPTS AND EXPENDITURES 165

Table III-2.—State and Local Government Receipts and Expenditures, 1946-57 l

[Millions of dollars]

Line

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

Receipts

Personal tax and nontax receipts

Income taxes

Death and gift taxes ,

Motor vehicle licenses

 2

.

Property taxes

 3

Other taxes *

Nontaxes

 5

 _._ _

Corporate profits tax accruals

Indirect business tax and nontax accruals

Sales tax..

States

General __

Gasoline

Liquor

T obacco

Local. -__ - _.-

Motor vehicle licenses

 2

...

Property taxes 3 _

Other taxes

 7

 . _

Nontaxes 8...

Contributions for social insurance

Federal grants-in-aid

 9

Expenditures

Purchases of goods and services. _

Compensation of employees

New construction,.

Other purchases .. .

Transfer payments to persons

Net interest paid

Interest paid.-

Less: Interest received

Less: Current surplus of government enterprises

Surplus or deficit (—) on income and product account

1946

13,042

1,567

409

153

199

155

86

565

462

9,417

2,899

2,716

1. 051

1,020

427

218

183

271

4,836

1,037

374

1,108

11,098

9,916

6,177

1,431

2,308

1,640

293

555

262

751

1,944

1947

15,502

1,818

488

177

226

171

101

655

604

10, 767

3,508

3,202

1,330

1,176

407

289

306

324

5,346

1,158

431

575

1,738

14,414

12, 732

7,320

2,483

2,929

2,226

253

521

268

797

1948

17,818

2,138

571

183

253

189

115

827

670

12, 315

4,115

3, 715

1,584

1,318

439

374

400

368

5,938

1,346

548

709

1,986

17,567

15, 230

8,502

3,640

3,088

2,890

263

550

287

816

251

1949

19,580

2,471

721

175

288

211

130

946

602

13, 479

4,333

3,882

1,609

1,451

418

404

451

412

6,642

1,501

591

800

2,228

20,156

17,918

9,422

4,916

3,580

2,868

270

585

315

900

-576

1950

21,418

2,634

779

182

326

227

141

979

767

14, 715

4,801

4,317

1,828

1,625

442

422

484

460

7,143

1,634

677

963

2,339

22,428

19,681

10,124

5,376

4,181

3,420

285

624

339

958

-1,010

1951

23,491

2,933

910

209

373

245

149

1,047

878

16,117

5,366

4,815

2,118

1,791

462

444

551

517

7,696

1,784

754

1,085

2,478

23,790

21, 692

11,069

6,437

4,186

2,927

264

656

392

1,093

-299

1952

25,498

3,192

1,008

218

397

266

169

1,134

820

17, 615

5,847

5,220

2,347

1,968

449

456

627

570

8,385

1,993

820

1,236

2,635

25,447

23,190

12,174

6,715

4,301

3,135

287

733

446

1,165

51

1953

27,408

3,426

1,048

238

421

287

182

1, 250

803

19,009

6,264

5, 546

2,509

2,100

471

466

718

629

9,096

2,189

831

1,359

2,811

27,136

24, 866

13,246

7,243

4,377

3,218

325

814

489

1,273

272

1954

29, 111

3,785

1,143

255

458

306

191

1,432

765

20,096

6,469

5,766

2,557

2,296

455

458

703

675

9,673

2,307

972

1,583

2,882

30,053

27, 706

14, 620

8,477

4,609

3,354

401

945

544

1,408

-942

1955

31,728

4,227

1,355

285

504

330

223

1,530

958

21, 825

7,103

6,324

2,838

2,491

514

481

779

728

10, 434

2,517

1,043

1,668

3,050

32,713

30,310

15, 727

9,161

5,422

3,536

469

088

619

1,602

-985

1,

1956

34,945

4,815

1,580

336

543

360

235

1,761

1,041

24,030

7,989

7,100

3,208

2,787

565

540

889

782

11, 395

2,790

1,074

1,802

3,257

35,499

33,117

17,439

10,233

5,445

3,619

507

1,241

734

1,744

-554

1957 Line

37,838

5,359

1,778

357

573

384

249

2,018

994

25,432

8,435

7,660

3,512

2,902

575

571

875

832

12,079

2,984

1,102

1,966

4,087

39,009

36,300

19,197

11, 336

5,767

3,972

542

1,361

819

1,805

-1,171

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

1. See footnote 1 to table III—1.

2. State only; includes State drivers' licenses.

3. Property taxes levied on houses of owner-occupants are classified as indirect business

taxes.

4. Consists of poll taxes and miscellaneous licenses and permits.

5. Consists of charges for government products and services not accounted for under government enterprises (such as tuition fees and public hospital fees); fines and penalties; donations;

and special assessments for outlay paid by unincorporated business, including homeowners.

6. Minor State sales taxes not specified below are included in "Other taxes."

7. Consists of gross receipts taxes, franchise taxes, licenses, permits, severance taxes, documentary and stock transfer taxes, and minor State sales taxes.

8. Consists mainly of charges for government products and services not accounted for under

government enterprises, including rents and royalties; fines and penalties; special assessments

for operation; and donations.

9. See footnote 6 to table III-l.

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Federal Reserve Bank of St. Louis
166 NATIONAL INCOME AND PRODUCT TABLES

Table III-3.—Government Receipts and Expenditures, Seasonally Adjusted Quarterly Totals at Annual Rates, 1946-47 1

[Billions of dollars]

Line

Federal Government receipts..

Personal tax and nontax receipts

Corporate profits tax accruals

Indirect business tax and nontax accruals..

Contributions for social insurance

Federal Government expenditures...

Purchases of goods and services..

Transfer payments.

To persons

Foreign (net)___

Grants-in-aid to State and local governments

Net interest paid

Subsidies less current surplus of government enterprisesSurplus or deficit (—) on income and product account

State and local government receipts _

Personal tax and nontax receipts

Corporate profits tax accruals

Indirect business tax and nontax accrualsContributions for social insurance

Federal grants-in-aid

State and local government expenditures...

Purchases of goods and services

Transfer payments to persons

Net interest paid

Less: Current surplus of government enterprises

Surplus or deficit (—) on income and product account.

1946

35.1

16.2

5.7

7.5

5.7

44.4

25.9

10.9

10.5

.5

1.0

4.1

2.5

-9. 3

12.2

1.5

.3

9.0

.4

1.0

10.0

8.9

1.5

.3

.8

2.2

37.8

17.0

7.4

7.8

5,6

37.1

20.2

9.8

9.6

.2

4.2

2.0

.7

12.6

1.5

.4

9.2

.5

.9

10.6

9.5

1.5

.3

.7

2.0

n i

41.0

17.5

10.0

8.1

5.4

33.7

18.1

9.0

8.8

.3

1.2

4.2

1.2

7.3

13.4

1.6

.5

9.6

.5

1.2

11.6

10.2

1.8

.3

.7

1.8

IV

42.9

17.9

11.6

8.2

5.3

32.8

18.1

8.4

8.0

.4

1.4

4.2

.8

10.1

13.9

1.6

.6

9.8

.5

1.4

12.3

11.0

1.8

.3

.8

1.6

Year

39.2

17.2

8.6

7.9

5.5

37.0

20.6

9.5

9.2

.3

1.1

4.2

1.6

2.2

13.0

1.6

.5

9.4

.5

1.1

11.1

9.9

1.6

.3

.8

1.9

43.5

19.3

10.8

7.8

5.5

30.6

15.9

8.3

8.3

.0

1.5

4.1

.7

12.9

14.6

1.7

.6

10.1

.6

1.5

13.2

11.9

1.8

.3

.8

1.3

42.8

19.4

10.3

7.6

5.5

29.6

15.1

7.9

7.8

.1

1.8

4.2

.6

13.2

15.3

1.8

.6

10.6

.6

1.8

13.9

12.4

2.1

.3

.8

1.4

III

42.5

19.7

10.3

7.7

4.7

33.7

15.9

11.4

11.1

.2

1.8

4.2

.5

8.7

15.8

1.9

.6

11.0

.6

1.8

14.9

12.9

2.6

.2

.8

.9

IV

44.5

20.2

11.3

8.3

4.7

30.6

15.7

8.4

8.2

.2

1.8

4.2

.5

13.9

16.3

1.9

.6

11.4

.6

1.8

15.6

13.7

2.5

.2

.8

.7

Year

43.3

19.6

10.7

7.9

5.1

31.1

15.6

9.0

8.9

.1

1.7

4.2

12.2

15.5

1.8

.6

10.8

.6

1.7

14.4

12.7

2.2

.3

.8

1.1

I. Footnotes to tables III-l and III-2 are relevant to this table also.

Table III-3.—Government Receipts and Expenditures, Seasonally Adjusted Quarterly Totals at Annual Rates, 1952-53 ]

[Billions of dollars]

Line

1952

I

67.4

30.8

19.2

10.0

7.4

66.5

48.5

9.6

8.5

1.1

2.5

4.8

1.1

1.0

24.6

3.1

.8

17.0

1.2

2.5

24.7

22.5

3.0

.3

1.2

- . 1

II

66.8

30.8

18.0

10.6

7.3

70.9

52.1

10.4

8.5

1.9

2.6

4.7

1.0

-4.2

25.3

3.2

.8

17.5

1.2

2.6

25.4

23.1

3.2

.3

1.2

- . 1

III

67.0

31.3

17.9

10.5

7.3

74.3

55.0

11.0

9.2

1.7

2.7

4.7

1.0

-7. 2

25.7

3.2

.8

17.8

1.3

2.7

25.5

23.2

3.1

.3

1.2

. 2

IV

69.6

31.7

19.4

11.0

7.5

74.7

55.8

10.5

9.3

1.2

2.8

4.7

.9

-5. 1

26.4

3.3

.9

18.2

1.3

2.8

26.0

23.7

3.2

.3

1.2

. 4

Year

67.7

31.2

18.6

10.5

7.4

71.6

52.9

10.4

8.9

1.5

2.6

4.7

1.0

-3. 9

25.5

3.2

.8

17.6

1.2

2.6

25.4

23.2

3.1

.3

1.2

. 1

1953

I

71.6

32. 1

20.7

11.3

7.5

76.7

57.4

11.4

9.6

1.8

2.2

4.8

.9

-5. 1

26.3

3.3

.9

18.5

1.3

2.2

26.7

24.4

3.1

.3

1.2

- . 4

II

72.3

32.5

21.0

11.3

7.5

79.4

58.9

11.4

9.5

1.9

3.4

4.8

.8

-7. 0

27.8

3.4

.9

18.8

1.3

3.4

26.7

24.3

3.2

.3

1.3

1.2

III

71.1

32.5

20.0

11.3

7.3

76.8

57.7

10.7

9.5

1.2

2.7

4.9

. 8

-5. 6

27.5

3.5

.8

19.2

1.4

2.7

27.3

24.9

3.3

.3

1.3

. 3

IV

66.3

32.3

15.9

10.9

7.2

78.1

57.8

11.6

10.2

1.4

2.9

4.9

.9

-11.8

27.9

3.5

.7

19.5

1.4

2.9

27.9

25.7

3.2

.3

1.3

. 0

Year

70.3

32.4

19.4

11.2

7.4

77.7

58.0

11.3

9.7

1.6

2.8

4.8

.8

-7.4

27.4

3.4

.8

19.0

1.4

2.8

27.1

24.9

3.2

.3

1.3

. 3

Federal Government receipts..

Personal tax and nontax receipts

Corporate profits tax accruals

Indirect business tax and nontax accruals^

Contributions for social insurance

Federal Government expenditures

Purchases of goods and services

Transfer payments

To persons

Foreign (net)

Grants-in-aid to State and local governments

Net interest paid

Subsidies less current surplus of government enterprises.

Surplus or deficit (—) on income and product account

State and local government receipts

Personal tax and nontax receipts

Corporate profits tax accruals

Indirect business tax and nontax accruals _

Contributions for social insurance

Federal grants-in-aid

State and local government expenditures

Purchases of goods and services

Transfer payments to persons

Net interest paid

Less: Current surplus of government enterprises

Surplus or deficit (—) on income and product account.

1. Footnotes to tables III-l and III-2 are relevant to this table also.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
GOVERNMENT RECEIPTS AND EXPENDITURES 167

Table III-3.—Government Receipts and Expenditures, Seasonally Adjusted Quarterly Totals at Annual Rates, 1948-51 1

[Billions of dollars]

I

45.0

21.1

11.6

7.8

4.5

31.1

15.9

8.6

8.0

.6

1.8

.6

13.9

17.0

2.1

.7

11.8

.7

1.8

16.7

14.2

3.0

.3

.8

.4

II

43.2

18.7

12.1

8.1

4.4

34.7

19.0

9.0

7.8

1.2

1.9

.6

8.5

17.7

2.1

.7

12.2

.7

1.9

17.2

14.7

3.0

.3

.8

.4

1948

I II

42.8

18.0

11.9

8.3

4.5

37.0

20.3

9.7

7.4

2.3

2.1

.7

5.8

18.1

2.2

.7

12.5

.7

2.1

18.0

15.6

2.9

.3

.8

. 2

IV

42.6

18.2

11.6

8.2

4.6

38.8

22.1

9.5

7.4

2.2

2.1

A q

3.8

18.4

2.2

.7

12.7

.7

2.1

18.2

16.1

2.6

.3

.8

. 3

Year

43.4

19.0

11.8

8.1

4.5

35.4

19.3

9.2

7.7

1.6

2.0

4.3

.6

8.0

17.8

2.1

.7

12.3

.7

2.0

17.6

15.2

2.9

.3

.8

. 3

1949

I

39.7

16.3

10.5

7.9

5.0

41.1

22.5

11.5

8.5

3.0

2.1

4.4

.6

-1. 4

19.0

2.4

.6

13.0

.8

2.1

19.1

17.0

2.7

.3

.9

- . 1

II

38.5

16.2

9.2

8.2

4.9

42.4

22.3

12.9

8.9

4.0

2.1

4.4

.7

-3. 9

19.2

2.5

.6

13.3

.8

2.1

19.7

17.6

2.8

.3

.9

- . 5

III

39.4

16.2

9.8

8.5

4.9

42.2

22.6

12.0

9.0

3.1

2.4

4.4

.8

-2. 8

19.9

2.5

.6

13.6

.8

2.4

20.6

18.3

2.9

.3

.9

- . 7

IV

38.7

16.1

9.6

8.1

4.9

40.8

21.6

11.6

8.7

2.9

2.3

4.4

.9

-2. 1

20.1

2.5

.6

13.9

.8

2.3

21.2

18.7

3.1

.3

.9

-1. 0

Year

39.1

16.2

9.8

8.2

4.9

41.6

22.2

12.0

8.8

3.2

2.2

4.4

-2. 5

19.6

2.5

.6

13.5

.8

2.2

20.2

17.9

2.9

.3

.9

- . 6

1950

I

43.1

16.7

12.6

8.0

5.7

47.0

19.1

20.1

17.2

2.9

2.4

4.5

1.0

-3. 8

20.6

2.6

.6

14.2

.9

2.4

22.1

19.3

3.4

.3

.9

-1. 4

II

47.3

17.3

15.5

8.8

5.7

39.0

17.2

13.7

10.3

3.4

2.5

4.5

1.1

8.3

21.3

2.6

.7

14.5

.9

2.5

22.6

19.3

3.9

.3

.9

-1. 3

I II

53.6

17.9

19.6

10.2

5.9

36.6

18.4

10.2

7.8

2.4

2.2

4.5

1.2

17.0

21.8

2.7

.9

15.0

1.0

2.2

22.4

19.8

3.3

.3

1.0

- . 6

IV

56.9

20.8

20.7

9.1

6.3

41.6

22.7

10.7

8.2

2.5

2.3

A a

1.3

15.3

22.0

2.7

.9

15.1

1.0

2.3

22.7

20.3

3.1

.3

1.0

- . 7

Year

50.2

18.2

17.1

9.0

5.9

41.0

19.3

13.7

10.9

2.8

2.3

A c

1.2

9.2

21.4

2.6

.8

14.7

1.0

2.3

22.4

19.7

3.4

.3

1.0

-1. 0

1951

I

67.7

25.5

25.1

10.1

7.1

47.5

28.7

10.4

8.3

2.1

2.5

A a

1.3

20.2

23.2

2.9

1.0

15.8

1.1

2.5

23.1

20.9

3.0

.3

1.0

. 1

II

63.8

25.9

21.6

9.2

7.1

55.7

36.1

11.0

8.7

2.3

2.6

1.3

8.1

23.3

2.9

.9

15.8

1.1

2.6

23.7

21.6

2.9

.3

1.1

- . 3

III

61.7

26.2

19.3

9.2

7.0

62.0

42.9

10.8

8.8

2.0

2.2

A Q

1.3

- . 3

23.3

3.0

.8

16.2

1.1

2.2

24.0

21.9

2.9

.3

1.1

- . 7

IV

64.6

27.5

20.3

9.7

7.2

67.0

47.4

11.1

8.8

2.3

2.6

A Q

1.2

-2. 4

24.1

3.0

.8

16.6

1.1

2.6

24.2

22.1

2.9

.3

1.1

- . 1

Year

64.5

26.3

21.6

9.5

7.1

58.0

38.8

10.8

8.7

2.1

2.5

1.3

6.4

23.5

2.9

.9

16.1

1.1

2.5

23.8

21.7

2.9

.3

1.1

- . 3

Line

10

11

12

13

14

15

16

17

18

19

20

22

23

24

25

26

Table III-3.—Government Receipts and Expenditures, Seasonally Adjusted Quarterly Totals at Annual Rates, 1954-57 l

[Billions of dollars]

1954

I

63.2

29.1

15.7

10.3

8.1

73.8

52.9

12.2

10.8

1.4

2.9

5.0

.9

-10.6

28.5

3.7

.7

19.7

1.5

2.9

28.8

26.5

3.3

.4

1.4

- . 3

II

63.3

29.0

16.1

10.1

8.0

68.7

47.1

12.7

11.6

1.2

2.8

5.0

1.0

-5. 4

29.0

3.8

.7

20.0

1.6

2.8

29.6

27.3

3 3

.4

1.4

- . 7

III

63.1

29.1

16.3

9.7

8.1

68.2

45.9

13.2

11.8

1.4

2.9

5.0

1.2

-5. 1

29,3

3.8

.8

20.2

1.6

2.9

30.6

28.2

3.4

.4

1.4

-1. 3

IV

65.5

29.4

17.7

10.1

8.2

67.8

44.4

14.0

12.5

1.5

2.9

5.0

1.5

-2. 3

29.7

3.9

.8

20.4

1.6

2.9

31.1

28.7

3.4

.4

1.5

-1. 4

Year

63.8

29.2

16.5

10.1

8.1

69.6

47.5

13.0

11.6

1.4

2.9

5.0

1.2

-5. 8

29.1

3.8

.8

20.1

1.6

2.9

30.1

27.7

3.4

.4

1.4

- . 9

1955

I

69.3

30.6

19.3

10.5

8.9

68.5

45.1

14.2

12.2

1.9

2.9

4.9

1.4

.8

30.5

4.1

.9

20.9

1.6

2.9

32.0

29.5

3.5

.4

1.5

-1.5

II

71.7

31.3

19.9

11.3

9.2

68.1

44.7

14.0

12.5

1.5

3.0

4.9

1.6

3.5

31.2

4.2

.9

21.5

1.7

3.0

32.6

30.2

3. 6

.5

1.6

-1. 4

III

74.3

31.9

21.7

11.2

9.6

68.8

45.3

13.7

12.5

1.2

3.2

4.9

1.7

5.5

32.3

4.3

1.0

22.2

1.7

3.2

32.9

30.5

3.5

.5

1.6

- . 6

IV

75.7

32.3

22.6

11.2

9.6

70.1

46.1

14.1

12.7

1.4

3.1

5.0

1.8

5.6

33.0

4.3

1.0

22.8

1.7

3.1

33.4

31.0

3.5

.5

1.7

- . 4

Year

72.8

31.5

20.9

11.0

9.3

68.9

45.3

14.0

12.5

1.5

3.0

4.9

1.6

3.8

31.7

4.2

1.0

21.8

1.7

3.0

32.7

30.3

3.5

. 5

1.6

-1. 0

1956

I

77.5

34.5

21.7

11.1

10.2

69.8

44.8

14.3

13.0

1.3

3.0

5.0

2.6

7.7

33.9

4.7

1.1

23.4

1.7

3.0

34.3

32.0

3.6

.5

1.7

- . 5

II

77.9

35.1

21.1

11.4

10.3

70.6

44.5

15.0

13.5

1.5

3.2

5.2

2.8

7.3

34.6

4.8

1.0

23.9

1.8

3.2

35.1

32.7

3.6

. 5

1.7

- . 4

III

78.4

35.4

20.8

11.6

10.7

72.6

46.1

14.9

13.7

1.2

3.4

5.3

2.8

5.8

35.4

4.9

1.0

24.3

1.8

3.4

35.7

33.4

3.6

.5

1.8

- . 4

IV

81.2

35.9

22.0

12.4

10.9

74.7

47.5

15.5

13.9

1.6

3.4

5.4

2.9

6.5

35.9

5.0

1.1

24.6

1.9

3.4

36.8

34.4

3.7

.5

1.8

-1. 0

Year

78.7

35.2

21.4

11.6

10.5

71.9

45.7

14.9

13.5

1.4

3.3

5.2

2.8

6.8

34.9

4.8

1.0

24.0

1.8

3.3

35.5

33.1

3.6

.5

1.7

- . 6

1957

I

83.2

37.1

21.9

12.1

12.1

77.7

49.1

16.0

14.6

1.4

3.9

5.5

3.2

5.5

37.1

5.2

1.1

25.0

1.9

3.9

38.5

35.9

3.8

.5

1.8

-1. 4

II

82.7

37.3

20.7

12.5

12.2

80.1

49.7

17.8

16.0

1.8

3.8

5.7

3.2

2.6

37.4

5.3

1.0

25.3

1.9

3.8

38.7

36.0

3.9

.5

1.8

-1. 3

III

83.3

37.7

21.0

12.3

12.4

79.9

49.7

17.1

15.9

1.2

4.3

5.7

3.1

3.4

38.3

5.4

1.0

25.6

2.0

4.3

38.9

36.1

4.0

.5

1.8

- . 6

IV

80.6

37.5

19.0

12.0

12.2

80.8

49.1

18.6

17.2

1.4

4.4

5.7

3.1

- . 2

38.5

5.5

.9

25.7

2.0

4.4

40.6

37.8

4.1

.6

1.8

-2. 1

Year

82.5

37.4

20.7

12.2

12.2

79.6

49.4

17.3

15.9

1.5

4.1

5.6

3.1

2.9

37.8

5.4

1.0

25.4

2.0

4.1

39.0

36.3

4.0

.5

1.8

-1. 2

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
168 NATIONAL INCOME AND PRODUCT TABLES

Table III—4.—'Government Receipts and Expenditures, Quarterly, 1946—47

[Billions of dollars]

Line

Federal Government receipts..

Personal tax and nontax receipts

Corporate profits tax accruals

Indirect business tax and nontax accruals -

Contributions for social insurance

Federal Government expenditures - -

Purchases of goods and services.

Transfer payments-.

To persons

Foreign (net)__.

Orants-in-aid to State and local governments

Net interest paid

Subsidies less current surplus of government enterprises.

Surplus or deficit (—) on income and product account

State and local government receipts

Personal tax and nontax receipts

C orporate profits tax accruals

Indirect business tax and nontax accruals.

Contributions for social insurance

Federal gran ts-in-aid

State and local government expenditures.

Purchases of goods and services

Transfer payments to persons

Net interest paid

Less: Current surplus of government enterprises.

Surplus or deficit (—) on income and product account.

1946

11.6

7.1

1.2

1.8

1.5

11.1

6.5

2.7

2.6

.1

.2

1.0

.5

3.1

.5

.1

2.2

.1

.2

2.5

2.2

.4

. 1

.2

.6

II

8.1

2.9

1.8

1.9

1.4

9.5

5.1

2.5

2.4

.1

.2

1.0

.7

-1.4

3.1

.4

. 1

2.3

.1

\2

2.7

2.4

.4

.1

2

.5

III

9.7

3.9

2.5

2.1

1.3

8.2

4.5

2.2

2.2

.1

.3

1.1

. 1

1.5

3.3

.4

. 1

2.4

.1

.3

2.8

2.5

.4

. 1

.2

.6

IV

9.8

3.3

3.1

2.1

1.3

8.2

4.5

2.1

2.0

.1

.4

1.0

. 1

1.6

3.5

.3

.2

2.5

.1

.4

3.1

2.8

.4

.1

.2

Year

39.2

17.2

8.6

7.9

5.5

37.0

20.6

9.5

9.2

.3

1.1

4.2

1.6

2.2

13.0

1.6

.5

9.4

.5

1.1

11.1

9.9

1.6

.3

.8

1.9

1947

14.2

8.2

2.6

1.9

1.5

7.7

4.0

2.1

2.1

.0

.4

1.0

.2

6.4

3.6

.5

.1

2.5

.1

.4

3.1

2.8

.5

. 1

.2

.5

II

9.2

3.5

2.5

1.8

1.4

7.6

3.8

2.0

2.0

.0

.4

1.0

.3

1.7

3.8

.5

.1

2.6

.1

.4

3.5

III

10.0

4.3

2.6

2.0

1.2

8.1

3.8

2.7

2.7

.0

.5

1.0

.1

1.9

3.9

.4

.1

2.8

.1

.5

3.7

3.2

.6

. I

.2

.2

IV

9.9

3.7

3.0

2.2

1.0

7.7

4.0

2.2

2.1

.1

.5

1.0

.0

2.2

4.1

.4

.2

2.9

.2

.5

4.1

3.6

.6

.1

.2

.0

Year

43.3

19.6

10.7

7.9

5.1

31.1

15.6

9.0

8.9

.1

1.7

4.2

12.2

15.5

1.8

.6

10.8

.6

1.7

14.4

12.7

2.2

.3

.8

1.1

1. Footnotes to tables III-l and III-2 are revelant to this table also.

Table III-4.—Government Receipts and Expenditures, Quarterly, 1952-53i

[Billions of dollars]

Line

Federal Government receiptsPersonal tax and nontax receipts

Corporate profits tax accruals

Indirect business tax and nontax accruals -

Contributions for social insurance

Federal Government expenditures

Purchases of goods and services

Transfer payments

To persons

Foreign (net)

Grants-in-aid to State and local governments

Net interest paid

Subsidies less current surplus of government enterprises..

Surplus or deficit (—) on income and product account

State and local government receipts

Personal tax and nontax receipts

Corporate profits tax accruals

Indirect business tax and nontax accruals.

Contributions for social insurance

Federal grants-in-aid

State and local government expenditures

Purchases of goods and services

Transfer payments to persons

Net interest paid

Less: Current surplus of government enterprises

Surplus or deficit (—) on income and product account..

1952

20.4

11.2

4.6

2.4

2.2

16.6

12.1

2.5

2.2

.3

.6

1.2

.3

3.8

6.2

.9

.2

4.2

.3

.6

5.9

5.3

.8

.1

.3

.3

II

15.6

6.4

4.6

2.6

1.9

17.9

13.1

2.6

2.1

.5

.6

1.2

.3

-2. 3

6.3

.8

.2

4.4

.3

.6

6.4

5.8

.8

.1

.3

- . 1

I II

16.2

7.3

4.5

2.7

1.8

18.6

13.8

2.7

2.3

.4

.7

1.2

.2

-2. 4

6.4

.7

.2

4.5

.3

.7

6.5

5.9

.8

.1

.3

.0

IV

15.5

6.2

4.9

2.8

1.6

18.5

13.8

2.5

2.3

.2

.7

1.2

.2

-3. 0

6.6

.7

.2

4.6

.3

.7

6.7

6.1

.8

.1

.3

.0

Year

67.7

31.2

18.6

10.5

7.4

71.6

52.9

10.4

8.9

1.5

2.6

4.7

1.0

-3. 9

25.5

3.2

.8

17.6

1.2

2.6

25.4

23.2

3.1

.3

1.2

.1

1953

21.5

11.7

4.9

2.7

2.3

19.2

14.3

2.9

2.4

.5

.5

1.2

.2

2.4

6.5

.9

.2

4.5

.3

.5

6.3

5.7

.8

.1

.3

.2

16.6

6.3

5.5

2.8

2.0

20.0

14.9

2.9

2.4

.5

1.2

.2

-3.4

7.0

1.0

. 2

4^7

.3

.8

6.7

6.2

.8

.1

.3

.3

I II

17.5

7.9

5.0

2.8

1.7

19.3

14.5

2.6

2.3

.3

.7

1.2

.2

-1. 8

6.9

.2

4.8

.3

.7

7.0

6.4

.8

.1

.3

- . 1

IV

14.7

6.5

4.0

2.8

1.4

19.3

14.4

2.8

2.5

.3

.8

1.2

.1

-4. 6

7.0

.2

5.0

.3

7.1

6.6

.8

.1

- . 1

Year

70.3

32.4

19.4

11.2

7.4

77.7

58.0

11.3

9.7

1.6

2.8

4.8

-7. 4

27.4

3.4

.8

19.0

1.4

2.8

27.1

24.9

3.2

.3

1.3

.3

1. Footnotes to tables III-l and III-2 are relevant to this table also.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
GOVERNMENT RECEIPTS AND EXPENDITURES 169

Table III-4.—Government Receipts and Expenditures, Quarterly, 1948-51 1

[Billions of dollars]

1948

I

14.4

8.6

2.7

1.9

1.2

7.8

4.0

JO JO

to ©to

.4

1.1

.1

6.7

4.3

.6

.2

2.9

.2

.4

4.0

3.4

.8

.1

.2

.2

II

9.4

3.3

2.9

2.0

1.2

8.7

4.8

2.2

1.9

.3

.4

1.1

.2

.6

4.4

.6

.2

3.0

.2

.4

4.4

3.8

.8

.1

.2

.0

III

10.0

3.8

3.0

2.1

1.2

9.0

4.9

2.3

1.8

.5

.5

1.1

.1

1.1

4.5

.5

.2

3.1

.2

.5

4.5

3.9

.7

.1

.2

.0

IV

9.6

3.3

3.2

2.2

1.0

9.9

5.6

2.5

1.9

.6

.6

1.1

.2

-.4

4.7

.5

.2

3.3

.2

.6

4.6

4.1

.6

.1

.2

.0

Year

43.4

19.0

11.8

8.1

4.5

35.4

19.3

9.2

7.7

1.6

2.0

4.3

.6

8.0

17.8

2.1

.7

12.3

.7

2.0

17.6

15.2

2.9

.3

.8

.3

1949

I

12.3

6.6

2.5

1.9

1.3

10.4

5.7

2.9

2.2

.5

1.1

.2

1.9

4.7

.7

.2

3.2

.2

.5

4.5

4.0

.7

.1

.2

.2

II

8.3

2.7

2.3

2.0

1.3

10.7

5.6

3.2

2.2

1.0

.5

1.1

.2

-2.4

4.8

.7

.1

3.3

.2

.5

5.0

4.5

.7

.1

.2

-.2

III

9.7

3.8

2.5

2.2

1.2

10.2

5.5

2.9

2.1

.7

.6

1.1

.1

-.5

5.0

.6

.2

3.4

.2

.6

5.2

4.6

.7

.1

.2

-.2

IV

8.9

3.1

2.5

2.1

1.1

10.3

5.5

3.0

2.2

.7

.6

1.1

.2

-1.5

5.1

.5

.2

3.6

.2

.6

5.4

4.8

.8

.1

.2

-.4

Year

39.1

16.2

9.8

8.2

4.9

41.6

22.2

12.0

8.8

3.2

2.2

4.4

.7

-2.5

19.6

2.5

.6

13.5

.8

2.2

20.2

17.9

2.9

.3

.9

— 6

1950

I

12.7

6.3

2.9

1.9

1.6

11.8

4.7

5.1

4.4

.7

.6

1.1

.3

.9

5.2

.8

.1

3.5

.2

.6

5.3

4.6

.9

.1

.2

-.1

II

10.8

3.3

3.8

2.1

1.6

9.9

4.3

3.4

2.6

.9

.6

1.1

.4

.9

5.3

.6

.2

3.6

.2

.6

5.7

4.9

1.0

.1

.2

-.5

III

13.4

4.3

5.0

2.6

1.5

9.0

4.6

2.4

1.9

.6

.6

1.1

.2

4.4

5.5

.6

.2

3.8

.2

.6

5.6

5.0

.8

.1

.2

1

IV

13.3

4.3

5.4

2.4

1.3

10.4

5.6

2.7

2.0

.6

.6

1.1

.3

3.0

5.5

.6

.2

3.8

.3

.6

5.8

5.2

.8

.1

.2

-.3

Year

50.2

18.2

17.1

9.0

5.9

41.0

19.3

13.7

10.9

2.8

2.3

4.5

1.2

9.2

21.4

2.6

.8

14.7

1.0

2.3

22 A

19.7

3.4

.3

1.0

-1.0

1951

I

20.1

9.8

5.9

2.4

1.9

11.9

7.1

2.6

2.1

.5

.6

1.2

.4

8.2

5.8

.9

.2

3.8

.3

.6

5.5

5.0

.8

.1

.3

.3

II

14.8

5.1

5.5

2.2

1.9

14.1

9.1

2.8

2.2

.6

.6

1.2

.5

.7

5.8

.8

.2

4.0

.3

.6

6.0

5.5

.7

.1

.3

-.2

III

14.8

5.9

4.8

2.3

1.7

15.5

10.8

2.7

2.2

.5

.6

1.2

.2

-.7

5.8

.7

.2

4.1

.3

.6

6.1

5.6

.7

.1

.3

-.2

IV

14.7

5.3

5.4

2.5

1.5

16.6

11.8

2.7

2.2

.5

.7

1.2

.2

-1.9

6.0

.6

.2

4.2

.3

.7

6.2

5.7

.7

.1

.3

-.1

Year

64.5

26.3

21.6

9.5

7.1

58.0

38.8

10.8

8.7

2.1

2.5

4.7

1.3

6.4

23.5

2.9

.9

16.1

1.1

2.5

23.8

21.7

2.9

.3

1.1

-.3

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

Table III—4.—Government Receipts and Expenditures, Quarterly, 1954-57 *

[Billions of dollars]

1954

I

19.5

10.9

3.8

2.5

2.5

18.4

13.2

3.2

2.8

.4

.7

1.2

.2

1.1

7.0

1.0

.2

4.8

.4

.7

6.8

6.2

.8

.1

.3

.2

II

14.2

5.2

4.3

2.5

2.2

17.5

11.9

3.3

2.9

.3

.7

1.3

.4

-3.3

7.3

1.0

.2

5.0

.4

.7

7.6

7.0

.8

.1

.3

-.3

III

15.4

7.0

4.0

2.4

1.9

17.0

11.5

3.2

2.8

.3

.8

1.3

.3

-1.6

7.3

.9

.2

5.1

.4

.8

7.8

7.2

.8

.1

.4

-.5

IV

14.7

6.1

4.5

2.6

1.6

16.6

11.0

3.3

3.0

.3

.8

1.2

.3

-2.0

7.5

.9

.2

5.2

.4

.8

7.9

7.3

.9

.1

.4

-.4

Year

63.8

29.2

16.5

10.1

8.1

69.6

47.5

13.0

11.6

1.4

2.9

5.0

1.2

-5.8

29.1

3.8

.8

20.1

1.6

2.9

30.1

27.7

3.4

.4

1.4

-.9

1955

I

18.3

8.7

4.7

2.5

2.4

17.2

11.2

3.7

3.2

.5

.7

1.2

.4

1.2

7.5

1.1

.2

5.1

.4

.7

7.5

6.9

.9

.1

.4

.0

II

18.6

8.1

5.3

2.8

2.4

17.3

11.3

3.6

3.2

.4

.7

1.2

.5

1.4

7.9

1.2

.2

5.4

.4

.7

8.4

7.7

.9

.1

.4

-.5

III

18.3

7.9

5.3

2.8

2.4

17.1

11.4

3.3

3.0

.3

.9

1.2

.4

1.2

8.1

1.0

.2

5.6

.4

.9

8.4

7.8

.9

.1

.4

-.3

IV

17.5

6.8

5.6

2.9

2.1

17.3

11.4

3.4

3.1

.3

.8

1.3

.4

.1

8.3

1.0

.3

5.8

.4

.8

8.5

7.9

.9

.1

.4

-.2

Year

72.8

31.5

20.9

11.0

9.3

68.9

45.3

14.0

12.5

1.5

3.0

4.9

1.6

3.8

31.7

4.2

1.0

21.8

1.7

3.0

32.7

30.3

3.5

.5

1.6

-1.0

I

20.0

9.3

5.3

2.7

2.8

17.5

11.1

3.7

3.4

.3

.7

1.3

.6

2.6

8.4

1.3

.3

5.7

.4

.7

8.0

7.4

.9

.1

.4

.4

II

20.6

9.5

5.5

2.8

2.8

17.8

11.2

3.8

3.4

.4

.7

1.3

.7

2.8

8.7

1.3

.3

6.0

.4

.7

8.9

8.3

.9

.1

.4

-.2

1956

III

19.4

8.9

5.1

2.9

2.6

18.1

11.6

3.6

3.3

.3

.9

1.3

.7

1.3

8.9

1.2

.2

6.1

.5

.9

9.2

8.6

.9

.1

.4

-.4

IV

18.7

7.5

5.5

3.2

2.4

18.6

11.8

3.8

3.4

.4

.9

1.3

.7

.1

9.0

1.1

.3

6.2

.5

.9

9.3

8.7

.9

.1

.4

-.4

Year

78.7

35.2

21.4

11.6

10.5

71.9

45.7

14.9

13.5

1.4

3.3

5.2

2.8

6.8

34.9

4.8

1.0

24.0

1.8

3.3

35.5

33.1

3.6

.5

1.7

-.6

I

21.6

10.0

5.4

2.9

3.3

19.5

12.2

4.1

3.8

.4

.9

1.4

.8

2.1

9.1

1.4

.3

6.1

.5

.9

8.9

8.3

1.0

.1

.4

.2

II

22.0

10.3

5.4

3.1

3.2

20.3

12.5

4.5

4.1

.5

.9

1.4

1.0

1.7

9.5

1.5

.3

6.3

.5

.9

9.8

9.2

1.0

.1

.4

-.4

1957

III

20.6

9.3

5.2

3.1

3.0

20.0

12.5

4.1

3.9

.3

1.1

1.4

.8

.6

9.6

1.3

.2

6.4

.5

1.1

10.0

9.3

1.0

.1

.5

-.4

IV

18.3

7.8

4.8

3.1

2.6

19.8

12.2

4.5

4.2

.4

1.2

1.4

.5

-1.5

9.7

1.2

.2

6.6

.5

1.2

10.3

9.6

1.0

.1

.5

-.7

Year

82.5

37.4

20.7

12.2

12.2

79.6

49.4

17.3

15.9

1.5

4.1

5.6

3.1

2.9

37.8

5.4

1.0

25.4

2.0

4.1

39.0

36.3

4.0

.5

1.8

-1.2

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
170 NATIONAL INCOME AND PRODUCT TABLES

Table III-5.—Social Insurance Funds, 1946-57 l

[Millions of dollars]

Line

Federal

Contributions for social insurance.

Employee contributions

Employer contributions

Government and government enterprises.

Private

Self-employed persons' contributions

Less: Transferred to general government

Equals: Retained by social insurance funds.

Plus: Investment income

Equals: Net receipts _ __

Less: Benefit payments.

Equals: Surplus or deficit (—)

State and local

Contributions for social insurance

Employee contributions

Employer contributions

Government and government enterprises.

Private

Less: Transferred to general government-.

Equals: Retained by social insurance funds

Plus: Investment income

Equals: Net receipts

Less: Benefit payments..

Equals: Surplus or deficit (—)

1946

5,493

1,773

3.720

1, 654

2,066

244

5, 249

5,857

2,348

3,509

488

238

250

250

482

86

568

260

5,108

1,833

3, 275

840

2,435

114

4,994

667

5,661

2,123

3, 538

575

285

290

290

568

91

659

297

362

4, 511

1,829

2, 682

342

2, 340

175

4, 336

756

5, 092

2,226

2, 866

709

349

360

360

0

11

101

799

326

473

1949

4,937

1,856

3,081

732

2,349

226

4,711

853

5,564

3,492

2,072

800

378

422

420

2

16

784

122

906

356

19.50

5, 907

2,448

3, 459

396

3,063

338

5, 569

884

6, 453

6,100

353

963

446

517

510

7

17

946

142

1,088

690

7,085

2,904

4,181

486

3,695

6,697

887

7,584

4, 352

3,232

1,085

513

572

570

2

17

1,068

168

1,236

466

770

1952

7,378

2,975

4,197

525

3,672

206

303

7, 075

1,008

8,083

4,758

3,325

1,236

572

664

660

4

16

1,220

199

1.419

543

1953

7,369

3,086

4,064

324

3,740

219

347

7,022

1,118

8,140

5,606

2,534

1,359

635

724

720

4

17

1,342

210

1,552

609

943

1954

8,112

3,651

4,238

172

4,066

223

319

7,793

1,193

8,986

7, 463

1,523

1,583

699

884

880

4

17

1,566

248

1,814

700

1,114

1955

9,327

4,120

4,909

364

4,545

298

455

8,872

1,198

10, 070

8,040

2, 030

763

905

900

5

17

1,651

287

1,938

743

1,195

1956

10, 511

4,420

5,623

609

5,014

468

475

10,036

1,272

11, 308

8,937

2,371

1,802

828

974

970

4

18

1,784

331

2,115

854

1,261

1957 Line

12, 202

5,166

6,514

968

5,546

522

424

11, 778

1,342

13,120

11,177

1,943

1,966

910

1,056

1,050

6

20

1,946

377

2,323

964

1,359

10

11

13

14

15

16

17

18

19

20

21

22

23

1. For a listing of social insurance funds and for detail on employer and employee contributions and benefit payments, see tables III-6 and III-7.

Table III—6.-—Contributions for Social Insurance, 1946-57

[Millions of dollars]

Line

Total contributions for social insurance.

Employer contributions

Old-age and survivors insurance

State unemployment insurance

Federal unemployment tax

Railroad retirement insurance

Railroad unemployment insurance

Federal civilian employee retirement systemsState and local employee retirement systems..

Cash sickness compensation funds

Government life insurance

Employee contributions..

Old-age and survivors insurance.

State unemployment insurance..

Railroad retirement insurance. _.

Federal civilian employee retirement systemsState and local employee retirement systems._

C ash sickness compensation funds... \

Government life insurance

Self-employed persons' contributions.

Old-age and survivors insurance...

1946

5,981

3,970

687

893

184

163

139

241

250

1,413

2,011

687

44

163

262

190

48

617

1947

5,683

3,565

780

1,029

212

271

143

241

290

599

2,118

780

33

271

246

230

55

503

1948

5,220

3,042

965

228

283

25

244

360

0

2,178

18

283

275

280

414

1949

5,737

3,503

816

1,010

223

277

23

273

420

2

459

2,234

816

11

277

350

330

48

402

1950

6,870

3,976

1,308

1,217

232

282

24

316

510

7

2,894

13

282

371

395

51

474

1951

8,170

4,753

1,660

1,465

263

307

26

316

570

2

144

3,417

1,660

13

307

391

465

48

533

1952

8,614

4,861

1,776

1,350

263

319

25

326

660

4

138

3,547

1,776

14

319

427

520

52

439

206

206

1953

8,728

4,788

1,882

1,288

298

312

25

188

720

4

71

3,721

1,882

14

312

431

580

55

447

219

219

1954

9,695

5,122

2,458

1,081

289

294

24

42

880

4

50

4,350

2,458

13

294

430

640

59

456

223

223

1955

10,995

5,814

2,825

1,221

304

144

900

5

4,883

2,825

14

513

700

63

460

298

298

1956

12,313

6,597

3,014

1,475

326

316

76

393

970

4

23

5,248

3,014

16

316

600

760

68

474

468

468

1957 Line

14,168

7,570

3, 653

1,505

338

304

97

599

1,050

6

18

6,076

3,653

17

304

673

840

70

519

522

522

1

2

3

4

5

6

7

8

9

10

11

13

14

15

16

17

18

19

20

21

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
GOVERNMENT RECEIPTS AND EXPENDITURES 171

Table III-7.—Government Transfer Payments to Persons, 1946-57 l

[Millions of dollars]

Line

Total government transfer payments to persons

Federal Government

Benefits from social insurance funds

Old-age and survivors insurance benefits

State unemployment insurance benefits

Railroad retirement insurance benefits

Railroad unemployment insurance benefits.

Federal civilian pensions

Government life insurance benefits

Direct relief

Military pension, disability, and retirement payments

Adjusted compensation benefits

 2

. _ ._

Mustering-out payments to discharged servicemen and

terminal-leav^ benefits.

Readjustment, self-employment, and subsistence allowance to veterans.

Other 3

State and local governmentBenefits from social insurance funds

Government pensions __

Cash sickness compensation

Direct relief

Special types of public assistance..

Genera] assistance

Other <

1946

10,854

9,214

2,348

378

1,094

159

40

349

328

1,693

18

2,131

2.780

244

1,640

260

255

5

1,177

1,057

120

203

11,113

8,887

2,123

463

775

212

39

282

352

1,181

6

:, 577

J, 605

395

5,226

297

275

22

,478

.314

164

451

1948

10,542

7,652

2,226

552

790

283

28

220

353

2,297

3

431

2,284

411

2,890

326

300

26

1,727

1,529

198

837

1949

11,622

8,754

3.492

664

1,730

320

103

242

433

!, 402

2

167

!, 280

411

356

325

31

343

1950

14,304

10,884

6,100

954

1,367

337

60

273

3,109

2,478

2

116

1,708

480

3,420

308

360

38

2. 345

2,055

290

677

1951

11,590

8,663

4,352

1,872

837

345

20

288

990

2, 431

1

153

1,222

504

2,927

466

430

36

2,267

2,075

192

194

1952

12,041

8,906

4,758

2,177

992

476

42

328

743

2,562

1

453

652

480

3,135

543

500

43

2,297

2,129

168

295

1953

12,887

9, ii69

5, 606

2, 979

954

515

46

396

716

2, 747

1

355

498

462

3,218

609

560

49

2,357

2,207

150

252

1954

14,961

11,607

7,463

3,633

2,015

578

157

412

2,887

• 1

324

607

325

3,354

700

640

60

2,433

2,238

195

221

1955

16,050

12,514

8,040

4,915

1,369

620

93

453

590

3,120

0

297

730

327

3,536

743

680

63

2,495

2,283

212

298

1956

17,094

13,475

8, 93V

5, 652

1,400

674

70

553

588

3,214

0

192

781

351

3,619

854

780

74

2, 563

2,367

196

202

1957

19,868

15,896

11,177

7,321

1,755

738

93

648

622

3,394

0

121

757

441

3S972

964

880

84

2,766

2,556

210

242

Line

10

11

12

13

14

15

16

17

18

19

20

21

22

1. Classification differs from functional breakdown of transfer payments in table III-8.

2. For the period coyered in this table, consists almost entirely of cash redemptions by veterans of adjusted service bonds issued under the Adjusted Compensation Payment Act of

January 27, 1936.

3. Consists of military and naval insurance payments, payments to nonprofit institutions,

profits of military post exchanges and navy exchanges and ships' stores, payments under the

Panama Canal Construction Annuity Act, enemy alien and civilian war assistance, payments to United States military and civilian prisoners of war, and Atomic Energy Commission

fellowships.

4. Consists of veterans' aid and bonuses, payments for the care of foster children in private

family homes, and payments to nonprofit institutions.

466759 0—59

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
172 NATIONAL INCOME AND PRODUCT TABLES

Table III-8.—Government Expenditures by Type of Function, 1952-57 l

1952

[Millions of dollars]

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

Total --

National defense - - _ .__

Military services and foreign military assistance

Atomic energy development _.. . ._._._. .

Stockpiling and defense facilities

Other

General government

General administration

General property and records management

Central personnel management and employment costs

Net interest paid

Other -

International affairs and finance

Conduct of foreign affairs and informational activities

Foreign economic assistance and other transfers

Health, education, and welfare .. .

Public health and sanitation

Education

Elementary and secondary

Higher.. __ .. . .. - -

Other

Social security and special welfare services._

Public assistance and relief

Unemployment benefits

Old age and retirement benefits .

Other

Civilian safety

Police

Fire

Prisons -

Labor and manpower

Veterans'services and benefits . _.

Education, training, and other benefits

Compensation and pensions

Insurance

Hospitals and medical care

Administration and other services

Commerce and housing

Regulation of commerce and finance

TransDortation

Highways

Water

Air

Housing and community redevelopment

Public utilities

Transit

Electricitv

Water and gas

Postal services

Other

Agriculture and agricultural resources

Stabilization of farm Drices and income

Financin°r farm ownership and utilities

Conservation ot agricultural resources

Other services

Natural resources

Conservation and development of resources

Recreational use of natural resources

Other

Less* Government sales

Federal

Total

71,613

47,452

44,368

1,813

1,000

271

6,512

769

212

611

4,729

191

2,240

292

1,948

6,043

322

307

) 270

I

37

5,152

1,279

1,034

2,718

121

24

24

232

5,057

903

2,217

755

913

269

1,932

33

1,136

532

438

166

- 6 4

818

9

1,274

691

61

358

164

1,374

1,314

30

30

271

Purchases

of goods

and services

52,854

46,408

43,422

1,721

1,000

265

1,474

769

212

283

210

762

292

470

464

157

109

72

37

125

2

63

60

27

27

40

o

1,203

27

909

267

736

33

597

72

389

136

9

20

77

700

436

29

116

119

1,378

1,318

30

30

271

Transfer

payments

and net interest paid

15,113

1,074

1,034

40

5,078

328

4,729

21

1,478

1,478

3,745

56

3,689

1,034

2,655

3,738

766

2,217

755

Grants-inaid to State

and local

governments

 2

2,635

70

12

52

6

11

11

1,837

109

198

198

1,338

1,277

61

192

116

110

4

2

498

490

460

30

8

45

45

58

58

Subsidies

less current

surplus of

government enterprises

 3

1,011

-100

-100

- 5 1

- 5 1

- 3

- 3

- 3

698

49

49

- 8 1

798

- 6 8

529

255

32

242

- 6 2

- 6 2

State and local

Total 2

25,447

124

36

50

38

3,059

1,212

244

1,236

287

80

15,951

3,145

7,937

f 6,529

\ 1,045

363

2,826

2,826

1,860

945

584

331

183

198

184

14

5,084

364

4,475

4,394

19

62

460

- 3 4

45

- 7 7

o

-181

343

341

2

688

380

307

1

Purchases

of goods

and services

23,190

124

36

50

38

2,261

1 212

244

725

80

13,545

3,143

7 907

6,529

1,045

333

452

452

1,860

945

584

331

183

14

14

6,218

364

4,616

4, 503

51

62

572

640

63

193

384

26

341

341

687

380

307

Transfer

payments

and net interest paid

3,422

830

543

287

2,406

2

30

30

2,374

2,374

184

184

2

2

Less: Current surplus of

government enterprises

1,165

32

32

1,134

141

109

32

112

674

18

270

386

207

- 1

- 1

Line

1

2

3

4

5

6

7

1C

11

12

13

14

15

16

17

18

19

2C

21

21

23

24

21

26

27

2£

2S

3C

31

32

34

Zl

31

37

3?

3S

4C

41

45

4[

44

41

4(

47

4£

4<

5(

51

55

K

5'

5v

5(

5'

5*

51

6(

61

See footnotes at end of table.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
GOVERNMENT RECEIPTS AND EXPENDITURES 173

Table III-8.—Government Expenditures by Type of Function, 1952-57 1—Continued

1953

[Millions of dollars]

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

Total

National defense ... .. . _. . _ ._.

Military services and foreign military assistance -

Atomic energy development

Stockpiling and defense facilities

Other _ . . .

General government

General administration . .. . . . . ...

General property and records management

Central personnel management and employment costs

Net interest paid _ .. ...

Other

International affairs and finance . .. .. . .

Conduct of foreign affairs and informational activities

Foreign economic assistance and other transfers

Health , education , an d welfar e - .. .

Public health and sanitation

Education

Elementary and secondary

Other

Social security and special welfare services

Public assistance and relief

Unemployment benefits --...-.-.. -

Old age and retirement benefits

Other

Civilian safety

Police

Fire

Prisons

Labor and manpower

Other

Veterans' services and benefits

Education, training, and other benefits - . . ..

Compensation and pensions

Insurance

Hospitals and medical care

Administration and other services

Commerce and housing

Regulation of commerce and finance

Transportation

Highways

Water

Air

Housing and community redevelopment

Public utilities

Transit

Electricity

Water and gas

Postal services

Other

Agriculture and agricultural resources

Stabilization of farm prices and income

Financing farm ownership and utilities

Conservation of agricultural resources

Other services

Natural resources

Conservation and development of resources

Recreational use of natural resources

Other

Less* Government sales

Federal

Total

77,715

50,301

47, 330

1,872

888

211'

6,585

748

167

579

4,846

245

2,050

238

1,812

7,002

277

343

} 307

36

6,133

1,396

1,000

3,559

178

24

24

220

5

4,810

627

2,369

736

851

227

1,681

44

1,149

596

402

151

- 5 4

599

- 5 7

4,179

3,667

43

292

177

1,421

1,357

30

34

314

Purchases

of goods

and services

57, 964

49,289

46, 432

1 772

888

197

1,326

748

167

183

228

465

236

229

494

150

104

68

36

182

2

63

117

27

27

26

5

1,098

26

847

225

562

44

478

59

305

114

9

17

14

3,599

3,328

29

111

131

1,445

1,381

30

34

314

Transfer

payments

and net interest paid

16,098

1,020

980

40

5,301

396

4,846

59

1,583

1,583

4,541

45

4,496

1,000

3,496

3,653

548

2,369

736

Grants-inaid to State

and local

governments

 2

2,811

90

16

60

14

12

12

1,970

82

239

239

1,455

1,394

61

194

59

53

4

2

568

560

537

23

8

46

46

66

66

Subsidies

less current

surplus of

government enterprises

 3

842

-98

- 9 8

- 5 4

—54

2

2

_ 3

o

~

3

551

111

97

14

- 7 1

582

- 7 1

534

339

14

181

- 9 0

- 9 0

State and local

Total 2

27,136

139

44

53

42

3,308

1,271

254

1,363

325

95

17,203

3,192

8,912

/ 7,453

1 1,080

379

2,913

2,913

1,998

1, 042

598

358

188

139

126

13

5,301

413

4,785

4,684

53

48

280

7

18

- 2 2

11

-184

367

362

5

679

329

355

- 5

Purchases

of goods

and services

24,866

139

44

53

42

2,411

1,271

254

791

95

14,725

3 187

8 873

7,453

1,080

340

482

482

1,995

1,042

596

357

188

13

13

6,532

413

4,950

4,811

86

53

390

758

43

264

451

21

362

362

684

329

355

Transfer

payments

and net interest paid

3,543

934

609

325

2,478

5

39

39

2,431

2,431

3

2

1

126

126

5

5

Less: Current surplus of

government enterprises

1,273

37

37

1,231

165

127

33

5

110

751

25

286

440

205

5

5

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

See footnotes at end of table.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
174 NATIONAL INCOME AND PRODUCT TABLES

Table III-8.—Government Expenditures by Type of Function, 1952-57 !—Continued

1954

[Millions of dollars]

Line

1

2

3

4

5

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

Total

National defense

Military services and foreign military assistance __ -

Atomic energy development

Stockpiling and defense facilities - _

Other

General government

General administration

General property and records management

Central personnel management and employment costs

Net interest paid

Other

International affairs and finance

Conduct of foreign affairs and informational activities. -

Foreign economic assistance and other transfers _ _ - .

Health, education, and welfare

Public health and sanitation. . _ _ . _. - .

Education

Elementary and secondary

Higher... ... - .. .

Other -

Social security and special welfare services .. . .. -

Public assistance and relief

Unemployment benefits.- . .

Old age and retirement benefits -.. . .. _ . .. _

Other

Civilian safety. _ -

Police

Fire '

Prisons. - -- - -. . .. __.__-

Labor and manpower

Other— .- . -. . --

Veterans' services and benefits

Education, training, and other benefits _

Compensation and pensions . .. -

Insurance

Hospitals and medical care _ .. . ...

Administration and other services

Commerce and housing

Regulation of commerce and finance. _ _ __.

Transportation _ _ . ____-. . . . . .. .

Highways. . .. _. _ _.

Water - _ .

Air . . . .

Housing and community redevelopmentPublic utilities

Transit . _ - - .

Electricity

Water and gas - ..

Postal services. .. . . . .. . - .. . .. .

Other

Agriculture and agricultural resources

Stabilization of farm prices and income

Financing farm ownership and utilities ___ _.

Conservation of agricultural resources __

Other services

Natural resources , -

Conservation and development of resources

Recreational use of natural resources -

Other

Less: Government sales __ _

Federal

Total

69,570

42,113

38,975

1,937

1,009

192

6,726

717

147

509

5 006

347

1,776

213

1,563

8,982

235

351

} 308

43

8,096

1,439

2 172

4 279

206

29

29

262

9

4 785

680

2,474

698

736

197

1,476

38

1,179

632

357

190

- 8 6

367

- 2 2

2,815

2,270

38

315

192

1,212

1,149

36

27

315

Purchases

of goods

and services

47,548

41,189

38,168

1,837

1,009

175

1,289

717

147

97

328

413

212

201

536

119

106

63

43

213

2

66

145

31

31

58

9

951

24

732

195

522

38

418

60

248

110

10

21

35

1,699

1,436

24

98

141

1,264

1,201

36

27

315

Transfer

payments

and net interest paid

17,975

916

876

40

5,468

412

5,006

50

1,362

1,362

6,425

40

6,385

2,172

4,213

3,804

632

2,474

698

Grants-mid to State

and local

governments

 2

2,882

97

20

60

17

22

22

2,023

76

245

245

1,498

1,437

61

204

30

24

4

2

585

585

572

13

51

51

74

74

Subsidies

ess current

surplus of

government enterprises

 3

1,165

- 8 9

- 8 9

- 5 3

—53

1

1

- 2

- 2

2

369

176

109

67

- 9 6

346

- 5 7

1,065

834

14

217

— 126

-12 6

State and local

Tota l 2

30,053

151

50

58

43

3,786

1,388

303

1, 602

401

92

19,025

3, 461

10,075

f 8,517

392

3,112

3,112

2,178

1,133

652

393

199

30

18

12

5,913

402

5, 536

5, 395

89

52

199

—40

—24

— 71

55

-18 4

390

383

7

758

357

407

—6

Purchases

of goods

and services

27,706

151

50

58

43

2,721

1 388

303

938

92

16,396

3 455

10,030

8,517

1,166

347

536

536

2,176

1 133

651

392

199

12

12

7,279

402

5,709

5,536

115

58

331

804

61

243

500

33

383

383

764

357

407

Transfer

payments

and net interest paid

3,755

1,101

700

401

2,629

o

45

45

2,576

2,576

2

1

1

18

18

7

7

Less: Current surplus of

government enterprises

1,408

36

36

1,366

173

141

26

6

132

844

85

314

445

217

6

5

Line

1

2

3

4

7

g

g

10

11

12

13

14

15

If

17

IS

IS

2C

21

2S

21

24

21

2t

2"

2£

2i

3C

3]

35

3[

34

SI

3f

3'

3£

3^

4(

41

45

4£

44

4c

4(

4'

4$

4

(

5(

5

55

K

5^

5*

5(

5'

5*

5

(

6(

61

Set footnotes at end of table.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
GOVERNMENT RECEIPTS AND EXPENDITURES

Table III-8.—Government Expenditures by Type of Function, 1952-57l—Continued

1955

[Millions of dollars]

175

Line

I

2

3

4

5

g

q

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

Total . - - -

National defense

Military services and foreign military assistance„ _

\tomic energy development

Stockpiling and defense facilities __. - - -__ _

Other

General government

General administration . _ . . .

General property and records management

Central personnel management and employment costs.__

Net interest paid

Other -

International affairs and finance

Conduct of foreien affairs and informational activities . ..

Foreign economic assistance and other transfers.. _

Health education, and welfare

Public health and sanitation

Fducation

Elementary and secondary

Higher - - - ---

Other

Social security and special welfare services _ -

Public assistance and relief

Unemployment benefits

Old age and retirement benefits

Other

Civilian safety

Police

Fire

Prisons

Labor and manpower

Other

Veterans' services and benefits - .. . ..

Education, training, and other benefits — _. .

Compensation and pensions

Insurance

HosDitals and medical care

Administration and other services

Commerce and housing -

Regulation of commerce and finance

Transportation

Highways

Water

\ir

Housing and community redevelopment

Public utilities

Transit

Electricity

Water and eas

Postal services

Other

Agriculture and agricultural resources

Stabilization of farm prices and income

Financing farm ownership and utilities

Conservation of agricultural resources

Other services

Natural resources

Conservation and development of resources

Recreational use of natural resources

O+her

Less: Government sales

Total

68,915

40,046

37, 549

1,676

658

163

6,859

786

155

651

4, 920

347

2,084

221

1,863

9,573

246

365

| 314

51

8,652

1,468

1, 462

5, 626

96

29

29

270

11

5,004

769

2,663

622

765

185

1,739

35

1,270

759

338

173

4

496

- 6 6

2,932

2,367

36

298

231

1,036

963

39

34

358

Purchases

of goods

and services

45,282

39,081

36, 722

1, 560

658

141

1,382

786

155

198

243

569

221

348

470

117

51

127

2

89"

36

32

32

56

11

956

13

760

183

464

35

411

58

231

12?

12

25

- 1 9

1,621

1,316

24

110

171

1,097

1,024

39

34

358

Federal

Transfer

payments

i n d net interest paid

18,948

953

903

50

5,417

453

4,920

44

1,514

1,514

7,036

6, 999

1, 462

5,537

4,028

743

2,663

622

Grants-inaid to State

and local

governments

 2

3,050

88

66

22

20

20

2,070

82

248

1,526

1,466

60

214

20

13

5

2

713

713

701

12

60

60

79

79

Subsidies

less current

surplus of

government enterprises

 3

1,635

- 7 6

- 7 6

40

" "40

1

1

- 3

- 3

- 3

562

146

107

39

- 8

471

—47

1,251

1,051

12

188

-14 0

-14 0

State and local

Tota l 2

32,713

151

54

65

32

4,063

1,466

356

1,673

469

99

20,833

3, 689

11,360

/ 9,636

I 1,314

410

3, 209

3, 209

2, 364

1, 238

693

433

2U

104

92

12

6, 300

410

5, 951

5,864

39

48

34

73

1

-10 8

180

— 168

407

401

6

855

381

478

Purchases

of goods

and services

30,310

151

54

65

32

2,883

1,466

356

962

99

18,138

3,683

11,317

9, 636

1,314

367

567

567

2, 360

1,238

691

431

211

12

12

7,866

410

6,165

6.029

74

62

182

1,042

80

257

705

67

401

401

859

381

478

Transfer

payments

and net interest paid

4,005

1,212

743

469

2,695

6

43

43

2,642

2,642

4

2

2

92

92

6

6

Less: Current surplus of

government enterprises

1 602

32

32

1,566

214

165

35

14

148

969

79

365

525

235

4

4

Line

2

3

4

5

p,

q

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

2t

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

See footnotes at end of table.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
176 NATIONAL INCOME AND PRODUCT TABLES

Table III-8.—Government Expenditures by Type of Function, 1952-57 1—Continued

1956

[Millions of dollars]

Line

1

2

3

4

5

7

g

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

Total. .. . . ..

National defense

Military services and foreign military assistance

Atomic energy development. .. .

Stockpiling and defense facilities . . . . . _ _

Other

General government . . .

General administration

General property and records management.. ...

Central personnel management and employment costs

Net interest paid

Other

International affairs and finance ..... . .. ._

Conduct of foreign affairs and informational activities

Foreign economic assistance and other transfers

Health, education, and welfare.

Public health and sanitation

Education

Elementary and secondary

Higher .. . ..

Other . . . .-

Social security and special welfare services . ...

Public assistance and relief- .. . _ .. . .

Unemployment benefits

Old age and retirement benefits

Other ---- .

Civilian safety. - - .. -

Police

Fire

Prisons

Labor and manpower .. . -

Other

Veterans'services and benefits .. ..

Education, training, and other benefits

Compensation and pensions - ..... .

Insurance

Hospitals and medical care

Administration and other services . ..

Commerce and housing

Regulation of commerce and finance

Transportation

Highways

Water A Air. .

 1

 _

Housing and community redevelopment.. - - .. . .. .. -

Public utilities

Transit

Electricity

Water and gas

Postal services . ... .

Other

Agriculture and agricultural resources

Stabilization of farm prices and income

Financing farm ownership and utilities

Conservation of aGrriculrural resources

Other services

Natural resources

Conservation and development of resources

Recreational use of natural resources

Other

Less * Government sales

Federal

Total

71,900

41,310

38, 863

1,798

458

191

7,334

812

189

974

5,238

121

2,068

242

1,826

10,833

328

350

] 294

56

9.823

1,539

1,470

6,452

362

30

30

292

10

5,104

805

2,701

625

797

176

2,186

39

1,464

827

448

189

26

632

25

2,207

1,556

62

337

252

1,189

1,100

54

35

331

Purchases

of goods

and services

45,721

40,330

- 38,031

1.672

458

169

1,540

812

189

421

J18

611

242

369

837

206

115

59

56

411

I

124

286

34

34

61

10

973

8

791

174

595

39

490

54

303

133

10

30

26

- 7 4

-403

31

117

181

1,240

1,151

54

35

331

Transfer

payments

and net interest paid

20,133

941

891

50

5,828

553

5,238

37

1,420

1, 420

7,829

31

7,798

1,470

6,328

4,115

789

2, 701

625

Grants-inaid to State

and local

governments

 2

3,257

98

76

22

23

23

2,171

91

235

235

1,614

1,538

76

231

16

8

6

2

791

791

773

18

71

71

87

87

Subsidies

less current

surplus of

government enterprises 3

2,789

- 5 9

- 5 9

- 5 7

- 5 7

37

37

- 4

- 4

- 4

800

183

145

38

16

602

— 1

2,210

1,959

31

220

-138

-138

State and local

Total 2

35,499

177

61

82

34

4,441

1,586

344

1,873

507

131

22,598

4,182

12, 398

f 10,403

1 1,507

488

3,252

3,252

2,540

1,336

735

469

226

40

29

11

6,813

453

6,461

6,333

52

76

0

83

36

- 6 8

115

-184

431

426

5

999

490

513

- 4

Purchases

of goods

and services

33,117

177

61

82

34

3,125

1,586

344

1.064

131

19,867

4,177

12,346

10,403

1, 507

436

580

580

2,538

1,336

734

468

226

11

11

8,508

453

6,728

6,533

95

100

161

1,107

107

300

700

59

426

426

1,003

490

513

Transfer

payments

and net interest paid

4,126

1,361

854

507

2,731

5

52

52

2,672

2,672

2

1

1

29

29

5

5

Less: Current surplus of

government enterprises

1,744

45

45

1,695

267

200

43

24

161

1,024

71

368

585

243

4

4

Line

1

2

3

4

5

6

7

g

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

6fi

56

57

58

58

6C

61

See footnotes at end of table.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
GOVERNMENT RECEIPTS AND EXPENDITURES 177

Table III-8.—Government Expenditures by Type of Function, 1952-57 1—Continued

1957

[Millions of dollars]

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

Total

National defense

Military services and foreign military assistance

Atomic energy development

Stockpiling and defense, facilities

Other..

Genera l governmen t . _ __.._. _ . .

General administration. .. .

General property and records management..

Central personnel management and employment costs

Net interest paid. .._ ____. .

Other

Internationa l affair s an d finance.. ....._...._. _ . . _

Conduct of foreign affairs and informational activities

Foreign economic assistance and other transfers

Health, education, and welfare

Public health and sanitation

Education

Elementary and secondary

Higher.. . .. _. _.

Other

Social security and special welfare services

Public assistance and relief

Unemployment benefits.. .. .. .. _ _

Old age and retirement benefits

Other . . . ..

Civilian safety

Police

Fire

Prisons .

Labor and manpower

Other... . - . .

Veterans' services and benefits . -

Education, training, and other benefits

Compensation and pensions

Insurance . _. .. . .. . .. .

Hospitals and medical care

Administration and other services . . _

Commerce and housing

Regulation of commerce and finance

Transportation . .. . _ ._

Highways

Water _ . .

Air

Housing and community redevelopment

Public utilities

Transit

Electricity

Wate r an d ga s . __. _...- -

Posta l service s . . . .

Other. .

Agriculture and agricultural resources

Stabilization of farm prices and income - _._.__ .

Financing farm ownership and utilities

Conservatio n of agricultura l resource s .__ _.-._ .

Othe r service s

Natural resources . _

Conservation and development of resources

Recreational use of natural resources

Other

Less: Government sales

Total

79,582

45,371

42,419

2,183

567

202

7,664

809

202

960

5,632

61

2,069

300

1,769

13,135

426

374

) 329

45

12,000

1,726

1,848

8,222

204

23

23

301

11

5,277

769

2,841

662

819

186

2,545

47

1,847

1 314

258

275

18

592

41

2,602

1,940

46

345

271

1,341

1,236

63

42

422

Purchases

of goods

and services

49,381

44,347

41, 574

2,024

567

182

1,378

809

202

312

55

617

300

317

722

265

108

63

45

260

2

161

97

27

27

51

11

1,006

9

813

184

506

47

362

35

119

208

9

47

41

-20 8

-544

31

117

188

1,435

1,330

63

42

422

Federal

Transfer

payments

and net interest paid

22,979

989

914

75

6,321

648

5,632

41

1,451

1,451

9,955

46

9,909

1,848

8,061

4,263

760

2,841

662

Grants-inaid to State

and local

governments

 2

4,087

104

84

20

23

23

2,462

115

266

266

1,831

1 £24

107

250

8

6

2

1,309

1,309

1 279

30

83

83

98

98

Subsidies

less current

surplus of

government enterprises

 3

3,135

- 6 9

- 6 9

- 5 8

—58

1

1

- 4

—4

—4

730

176

139

37

9

545

2,727

2,484

15

228

-19 2

-19 2

State and local

Total 2

39,009

204

69

97

38

4,870

1, 735

367

2,080

542

146

24,690

4, 590

13,562

f 11,320

I 1»712

530

3, 51(5

3,516

2, 774

1, 454

801

519

248

68

58

10

7,587

506

7,117

6,973

58

86

26

133

43

- 5 9

149

— 195

474

469

5

1,116

5.59

559

—2

Purchases

of goods

and services

36,300

204

69

97

38

3,404

1, 735

367

1,156

146

21,745

4,584

13, 506

11,320

1,712

474

635

635

2,772

1,454

800

518

248

10

10

9,350

506

7,398

7 187

101

110

176

1,206

117

327

762

64

469

469

1,118

559

559

Transfer

payments

and net interest paid

4,514

1,506

964

542

2,945

6

56

56

2,881

2,881

2

1

1

58

58

5

5

Less: Current surplus of

government enterprises

1,805

40

40

1,763

281

214

43

24

150

1,073

74

386

613

259

2

2

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

5C

51

52

53

54

55

56

57

5S

59

6C

61

1. This classification of expenditures by function follows generally similar classifications

published for the Federal Government in the Budget of the United States Government for the

Fiscal Year Ending June 30,1959, and for State and local governments, in the governmental

finances reports of the Bureau of the Census. The principal classification difference occurs

in Federal expenditures. National defense in this table differs from Major National Security

in the Budget by the inclusion (in line 6) of expenditures of the National Advisory Committee

for Aeronautics, Selective Service System, and Federal Civil Defense Administration, and

by the exclusion of expenditures for defense support under the mutual defense assistance

program. The latter are included in this table in foreign economic assistance and other

foreign transfers (line 15).

2. Federal grants-in-aid are reflected in both Federal and State and local expenditures. If

all government expenditures are combined these grants-in-aid should be deducted from the

total to avoid duplication.

3. A negative entry in this column indicates a current surplus of government enterprises,

or an excess of such surplus over subsidy payments where both types of entry occur for the

same function.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
178 NATIONAL INCOME AND PRODUCT TABLES

Table III—9.—Object Breakdown of Government Purchases of Goods and Services, Selected Functions, 1952—57

[Millions of dollars]

Line

Federal Government

Military services and foreign

military assistance

Wages and salariesMilitary _

Civilian..

Construction

Other purchases..

Military equipment

Other goods and services.

1952

43,422

15,158

10,472

4,686

1,388

26, 876

1953

46,432

14,934

10,337

4,597

1,307

30, 191

19, 070 18, 789

7,806 11,402

1954

38,168

14, 302

9,951

4, 351

1,030

22, 836

15, 634

7,202

1955

36,722

14,620

9,778

4,842

1,313

20, 789

13, 290

7, 499

1956

38,031

14,778

9, 668

5, 110

1,395

21,858

14, 429

7,429

41,574

14, 822

9, 634

5, 188

1, 322

25, 430

16, 235

9,195

Line

Federal Goverment—Continued

Stockpiling and defense facilities.

Net acquisition of strategic

materials

Defense production facilities i.

State and local government

Education

 2

Wages and salaries 3

Construction

Other purchases

1952

1,000

992

8

7,957

5,314

1,601

1,042

1953

888

739

149

8,926

5,812

1,705

1,409

1954

1,009

815

194

10,088

6,434

2,125

1,529

1955

658

508

150

11,382

6,987

2,436

1,959

1956

458

318

140

12,428

7,831

2,548

2,049

1957

315

252

13,603

8,837

2,817

1,949

1. Includes only expenditures made by nondefense agencies, principally the General

Services Administration. Expenditures for defense production facilities made by the Department of Defense are included in lines 5, 7, and 8.

2. Includes amounts spent for atomic research in State institutions of higher education

under contractual agreements with the Federal Government. These amounts are shown

separately in line 4 of Table III-8.

3. Differs from public education wages and salaries shown in Table VI-2 by the inclusion

of public library payrolls.

Table III—10.—Relation of Federal Government Receipts and Expenditures in the National Income Accounts to the Budget, 1952—57

[Billions of dollars]

Line

Receipts

Budget receipts

Less: Intragovernmental transactions

Receipts from exercise of monetary authority

Plus: Trust fund receipts

Equals: Federal receipts from the public (consolidated cash receipts)

Less: Adjustment for agency coverage:

District of Columbia revenues

Plus: Adjustments for netting and consolidation:

Federal Government contributions to:

E mployee retirement funds

Veterans' life insurance funds

Federal Government employee contributions to employee retirement

funds.

Interest, dividends, and other earnings. _

Adjustments for timing:

Excess of taxes included in national income accounts over cash collections:

Personal

Corporate profits

Other

Miscellaneous

Less: Adjustments for capital transactions:

Realization upon loans and investments

Proceeds from sale of government property

Recoveries and refunds

Equals: Receipts—national income accounts

Fiscal years

1952

61.4

2. 1

.1

68.0

.2

-1. 9

.1

- . 7

.2

.3

. 1

65.5

1953

64.8

2.2

. 1

71.5

.6

-1. 6

.1

.2

.2

.2

69.9

1954

64.7

2.1

. 1

9.2

71.6

.0

-4. 1

- . 3

- . 3

. 2

. 2

. 4

65.9

60.4

2.1

.0

9.5

67.8

.2

- . 4

.2

.5

. 1

- . 4

.3

.4

.6

67.0

1956

68.2

2.7

.0

11.7

77.1

.2

.2

.7

.0

- . 4

.3

.5

.6

76.4

1957

71.0

3.2

.0

14.4

82.1

.2

- . 3

.1

.2

.2

. 3

. 4

. 4

81.7

Calendar years

1956

second

half

28.1

1.6

.0

6.2

32.6

.3

5.2

. 1

.2

.2

.2

.2

38.1

1957

First

half

43.0

1.7

.0

8.2

49.5

-5. 1

.1

.1

.2

.2

.2

43.6

Second

half

29.3

1.4

.0

7.2

35.1

.1

3.9

- . 2

.1

Line

11

12

13

14

15

16

17

18

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
GOVERNMENT RECEIPTS AND EXPENDITURES 179

Table III—10.—Relation of Federal Government Receipts and Expenditures in the National Income Accounts to the Budget, 1952—57—Con.

[Billions of dollars]

Lino

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

Expenditures

Budget expenditures .. _. _

Less: Intergovernmental transactions

Accrued interest and other noncash expenditures (net)

Plus* Trust fund expenditures

Government-sponsored enterprise expenditures (net)

Equals: Federal payments to the public (consolidated cash expenditures)

Less: Adjustment foi agency coverage:

District of Columbia expenditures

Plus: Adjustments for netting and consolidation:

Federal Government contributions to:

Employee retirement funds. _ . _. . ..... .

Veterans' life insurance funds

Federal Government employee contributions to employee retirement

Interest received and proceeds of government sales

Adjustments for timing:

Accrued interest on saving bonds and Treasury bills - . _.

Commodity Credit Corporation guaranteed non-recourse loans (net

change).

Increase in clearing account .. .

Miscellaneous _._----..-_-- . . _ .-.

Less: Adjustments for capital transactions:

Loans and other adjustments:

Federal National Mortgage Association secondary market operations.

Other . . .

Purchase of land and existing assets. .. . _. . __. .

Trust and deposit fund expenditures

Redemption of International Monetary Fund notes - _..

Equals: Expenditures—national income accounts

19£2

65.4

2. 1

.3

5 3

— 3

68.0

. 1

. 3

.1

.4

- . 7

.8

.0

- . 4

.0

(0

1.7

.1

. 1

.0

66.5

1953

74.3

2.2

5. 3 — 1

76.8

. 1

.3

. 1

.4

—.9

.7

.2

- . 2

.7

(

l

)

1.8

. 1

- . 2

.0

76.3

Fiscal

1951

67.8

2.1

6

7.2

— 4

71.9

. 2

.0

. 1

.4

—.6

.6

1.7

- . 1

- . 1

0)

- . 6

.1

- . 2

- . 1

74.5

years

1955

64.6

2. 1

.6

8.5

1

70.5

.2

.0

.1

. 5

_ 7

.5

-1. 0

- . 1

.4

- . 1

1.7

.0

.5

- . 2

68.1

1956

66.5

2.7

9

9.4

3

72.6

. 2

.2

.1

.6

—.8

.4

- . 4

.3

-1. 3

. 1

1.1

.0

.8

- . 2

69.7

1957

69.4

3.2

—.8

13.0

o

80.0

.2

.5

.0

.7

- . 6

.6

- . 2

- . 8

-1. 0

1.0

.4

.0

.5

76.5

Calendar years

1956

second

half

33.8

1.6

- . 9

5.3

2

38.6

. 1

. 3©CO o

.9

.2

-1. 1

- . 4

.1

.6

.0

.3

.7

36.7

19

First

half

35.6

1.7

. 1

7.7

— 2

41.4

. 1

. 3

.0

.3

- . 3

- . 3

- . 4

.4

- . 6

.8

- . 2

.0

.2

.0

39.8

57

Second

half

36.1

1.4

. 1

7.1

3

41.9

. 1

. 3

.0

.3

- . 6

.8

.0

- . 3

- . 6

. 3

.7

.0

.4

.3

39.8

Line

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

1. Included in line 35 for years prior to fiscal year 1955.

Table III-ll.—Relation of State and Local Government Receipts and Expenditures in the National Income Accounts to Bureau of Census

Data, Fiscal Years 1952-56 l

[Billions of dollars]

Line

1

2

3

4

10

Receipts

Total revenue from own sources—CenLess: Excess of tax collections over accruals

Receipts of utilities and liquor stores

Receipts of other commercial activities

Receipts of unemployment compensation funds

Interest received

Sale of existing assets and capital

gains

Plus: Government contributions to selfadministered insurance funds

Federal grants-in-aid

Equals: Total receipts-"national income

accounts

1952

28.4

. 1

3. 1

1.3

1.6

.4

. 1

.5

2.5

24.8

1953

30.5

.0

3.3

1.4

1.6

. 5

. 1

.6

2.8

27.1

1954

32.4

. 1

3.5

1.5

1.5

. 5

. 1

.6

2.8

28.7

1955

34.5

- . 1

3.7

1.7

1.3

.6

. 1

.7

2.9

30.8

1956

38.4

- . 1

3.9

1.9

1.5

.7

.1

.7

3.1

34.2

Line

11

12

13

14

15

16

17

18

Expenditures

Total direct expenditures—Census

 2

Less: Operating expenditures and current

surplus of utilities and liquor

stores

Operating expenditures and current

surplus of other commercial activities

Unemployment compensation benefits

Interest received

Purchases of land and existing

structures

Plus: Government contributions to selfadministered insurance funds

Equals: Total expenditures—national income accounts

1952

30.9

3.1

1.3

1.0

.4

.5

.5

25.1

1953

32.9

3.3

.5

.5

.6

26.9

1954

36.6

3.5

1.5

.5

.7

.6

29.5

1955

40.4

3.7

1.7

1.8

32.4

1956

43.2

3.9

1.9

1.3

.7

1.2

.7

35.0

1. Reconciliation items are derived mainly from publications of the Governments Division of the Bureau of the Census; Federal grants-in-aid aro from Treasury and Bureau of the Budget

sources.

2. Total less intergovernmental.

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IV. Foreign Transactions

PAGE

IV-1. Foreign Transactions in the National Income Accounts, 1946-57 182

IV-2. Foreign Transactions in the National Income Accounts, Seasonally Adjusted

Quarterly Totals at Annual Rates, 1946-57 182

IV-3. Foreign Transactions in the National Income Accounts, Quarterly, 1946-57 182

IV-4. Relation of Foreign Transactions in the National Income Accounts to

Balance of Payments, 1946-57 184

IV-5. Balance of Payments on Goods, Services, and Unilateral Transfers, 1946-57 184

IV-6. United States Government Net Foreign Assistance, 1946-57 185

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Federal Reserve Bank of St. Louis
182 NATIONAL INCOME AND PRODUCT TABLES

Table IV-1.—Foreign Transactions in the National Income Accounts, 1946—57

[Millions of dollars]

Line

Receipts from abroad...

Exports of goods and services_

Payments to abroad . .

Imports of goods and services

Net transfer payments by Government.

Net foreign investment

1946

12,792

12, 792

12,792

7,876

321

4, 595

1947

17,900

17,900

17,900

122

8,917

1948

14,505

14,505

14,505

11,015

1,561

1,929

1949

13,958

13, 958

13,958

10,198

3,238

522

1950

13,098

13,098

13,098

12,511

2,791

- 2 , 204

1951

17,857

17,857

17,857

15, 481

2,147

229

1952

17,431

17, 431

17,431

16, 113

1,478

-160

1953

16,600

16, 600

16,600

17,034

1,583

-2,017

1954

17,476

17,476

17,476

16,515

1,362

-401

1955

19,381

19,381

19,381

18,287

1,514

-420

1956

22,955

22, 955

22,955

20,159

1,420

1, 376

1957

25,954

25, 954

25,954

21,041

1, 451

3, 462

Line

Table IV-2.—Foreign Transactions in the National Income Accounts, Seasonally Adjusted Quarterly Totals at Annual Rates, 1946-47

[Billions of dollars)

Line

Receipts from abroad

Exports of goods and services

Payments to abroad

Imports of goods and services

Net transfer payments by Government

Net foreign investment

I

11.1

11.1

11.1

7.3

.5

3.3

1946

II

12.4

12.4

12.4

7.9

.2

4.3

III

14.4

14.4

14.4

7.9

.3

6.2

IV

13.2

13.2

13.2

8.3

.4

4.5

Year

12.8

12.8

12.8

7.9

.3

4.6

17.4

17.4

17.4

8.5

.0

9.0

II

18.4

18.4

18.4

9.0

.1

9.3

1947

I II

18.5

18.5

18.5

8.6

.2

9.7

IV

17.2

17.2

17.2

9.3

.2

7.7

Year

17.9

17.9

17.9

.1

8.9

Table IV-2.—Foreign Transactions in the National Income Accounts, Seasonally Adjusted Quarterly Totals at Annual Rates, 1952-53

[Billions of dollars]

Line

Receipts from abroad

Exports of goods and services

Payments to abroad

Imports of goods and services

Net transfer payments by Government

Net foreign investment

I

19.0

19.0

19.0

15.9

1.1

2.0

1952

II

18.3

18.3

18.3

15.5

1.9

.9

III

16.0

16.0

16.0

16.0

1.7

-1. 7

I V

16.4

16.4

16.4

17.1

1.2

-1. 9

Year

17.4

17.4

17.4

16.1

1.5

- . 2

1953

I

16.5

16.5

16.5

16.7

1.8

-2. 1

II

16.5

16.5

16.5

17.2

1.9

-2. 6

III

16.7

16.7

16.7

17.5

1.2

-2. 0

IV

16.7

16.7

16.7

16.7

1.4

-1. 4

Year

16.6

16.6

16.6

17.0

1.6

-2. 0

Table IV-3.—Foreign Transactions in the National Income Accounts, Quarterly, 1946-47

[Billions of dollars]

Line

Receipts from abroad

Exports of goods and services

Payments to abroad

Imports of goods and services

Net transfer payments by Government

Net foreign investment

1946

I

2.7

2.7

2.7

1.9

.1

.7

II

3.3

3.3

3.3

1.9

.1

1.3

I II

3.4

3.4

3.4

2.0

.1

1.3

IV

3.5

3.5

3.5

2.1

.1

1.2

Year

12.8

12.8

12.8

7.9

.3

4.6

1947

I

4.3

4.3

4.3

2.1

.0

2.2

II

4.8

4.8

4.8

2.2

.0

2.6

I II

4.3

4.3

4.3

2.1

.0

2.2

IV

4.5

4.5

4.5

2.4

.1

2.0

Year

17.9

17.9

17.9

8.9

.1

8.9

Table IV—3.—Foreign Transactions in the National Income Accounts, Quarterly, 1952—53

[Billions of dollars]

Line

1

2

3

4

5

6

Receipts from abroad

Exports of goods and services

Payments to abroad .. . _ .

Imports of goods and services

Net transfer payments by Government . .

Net foreign investment

1952

I

4.8

4.8

4.8

4.0

.3

.6

II

4.5

4.5

4.5

3.9

.5

.1

III

3.8

3.8

3.8

4.0

.4

- . 6

IV

4.2

4.2

4.2

4.2

.2

- . 2

Year

17.4

17.4

17.4

16.1

1.5

— .2

1953

I

4.0

4.0

4.0

4.1

.5

- . 6

II

4.3

4.3

4.3

4.4

.5

- . 6

III

4.0

4.0

4.0

4.4

.3

- . 7

IV

4.3

4.3

4.3

4.1

.3

- . 1

Year

16.6

16.6

16.6

17.0

1.6

-2. 0

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Federal Reserve Bank of St. Louis
FOREIGN TRANSACTIONS 183

Table IV-2.—Foreign Transactions in the National Income Accounts, Seasonally Adjusted Quarterly Totals at Annual Rates, 1948-51

[Billions of dollars]

1948

I

15.5

15.5

15.5

10.7

.6

4.2

II

14.2

14.2

14.2

10.9

1.2

2.1

I II

14.2

14.2

14.2

11.5

2.3

.5

IV

14.1

14.1

14.1

11.0

2.2

.9

Year

14.5

14.5

14.5

11.0

1.6

1.9

1949

I

15.2

15.2

15.2

10.6

3.0

1.6

11

15.0

15.0

15.0

10.3

4.0

.6

III

13.6

13.6

13.6

9.9

3.1

.7

IV

12.1

42.1

12.1

10.0

2.9

- . 8

Year

14.0

14.0

14.0

10.2

3.2

.5

1950

I

12.5

12.5

12.5

10.5

2.9

- . 9

II

12.4

12.4

12.4

11.3

3.4

-2. 3

I II

13.4

13.4

13.4

14.0

2.4

-3. 0

IV

14.2

14.2

14.2

14.4

2.5

-2. 7

Year

13.1

13.1

13.1

12.5

2.8

-2. 2

1951

I

15.9

15.9

15.9

16.1

2.1

-2. 3

II

17.7

17.7

17.7

16.0

2.3

- . 6

I II

18.9

18.9

18.9

15.0

2.0

1.9

I V

18.9

18.9

18.9

14.8

2.3

1.9

Year

17.9

17.9

17.9

15.5

2.1

.2

Line

1

2

3

4

5

6

Table IV—2.—Foreign Transactions in the National Income Accounts, Seasonally Adjusted Quarterly Totals at Annual Rates, 1954—57

[Billions of dollars]

1954

I

16.0

16.0

16.0

15.7

1.4

-1. 0

II

17.9

17.9

17.9

17.1

1.2

-.' /

I II

17.3

T7.3

17.3

16.8

1.4

- . 9

IV

18.7

18.7

18.7

16.5

1.5

.7

Year

17.5

17.5

17.5

16.5

1.4

- . 4

1955

I

18.7

18.7

18.7

17.2

1.9

- . 5

II

18.6

18.6

18.6

17.9

1.5

- . 8

I II

20.0

20.0

20.0

18.7

1.2

.1

IV

20.3

20.3

20.3

19.4

1.4

- . 5

Year

19.4

19.4

19.4

18.3

1.5

- . 4

1956

I

20.9

20.9

20.9

20.1

1.3

II

22.5

22.5

22.5

19.8

1.5

1.3

III

23.6

23.6

23.6

20.4

1.2

2.0

IV

24.8

24.8

24.8

20.4

1.6

2.8

Year

23.0

23.0

23.0

20.2

1.4

1.4

1957

I

26.4

26.4

26.4

20.8

1.4

4.2

II

26.6

26.6

26.6

20.6

1.8

4.2

III

26.0

26.0

26.0

21.2

1.2

3.6

IV

24.9

24.9

24.9

21.6

1.4

1.9

Year

26.0

26.0

26.0

21.0

1.5

3.5

Line

1

2

3

4

5

6

Table IV—S.^Foreign Transactions in the National Income Accounts, Quarterly, 1948—51

[Billions of dollars]

1948

I

3.8

3.8

3.8

2.7

.2

1.0

II

3.7

3.7

3.7

2.7

.3

.7

III

3.3

3.3

3.3

2.8

.5

- . 1

IV

3.7

3.7

3.7

2.8

.6

.3

Year

14.5

14.5

14.5

11.0

1.6

1.9

1949

I

3.7

3.7

3.7

2.6

.7

.3

II

3.9

3.9

3.9

2.5

1.0

.3

I II

3.2

3.2

3.2

2.5

.7

.0

IV

3.2

3.2

3.2

2.5

.7

- . 1

Year

14.0

14.0

14.0

10.2

3.2

.5

1950

I

3.0

3.0

3.0

2.6

.7

- . 4

II

3.3

3.3

3.3

2.8

.9

A

III

3.2

3.2

3.2

3.5

.6

- . 8

I V

3.7

3.7

3.7

3.6

.6

- . 6

Year

13.1

13.1

13.1

12.5

2.8

-2. 2

1951

I

3.9

3.9

3.9

4.0

.5

- . 7

II

4.6

4.6

4.6

4.0

.6

.0

III

4.4

4.4

4.4

3.8

.5

.2

IV

4.9

4.9

4.9

3.7

.5

.8

Year

17.9

17.9

17.9

15.5

2.1

.2

Line

1

2

3

4

5

6

Table IV-3.—Foreign Transactions in the National Income Accounts, Quarterly, 1954-57

[Billions of dollars]

1954

I

3.9

3.9

3.9

3.9

.4

- . 3

II

4.6

4.6

4.6

4.4

.3

.0

III

4.1

4.1

4.1

4.2

.3

- . 5

IV

4.8

4.8

4.8

4.1

.3

.4

Year

17.5

17.5

17.5

16.5

1.4

- . 4

1955

I

4.6

4.6

4.6

4.2

.5

- . 1

II

4.8

4.8

4.8

4.6

.4

2

III

4.7

4.7

4.7

4.7

.3

- . 3

IV

5.3

5.3

5.3

4.7

.3

.2

Year

19.4

19.4

19.4

18.3

1.5

- . 4

1956

I

5.2

5.2

5.2

4.9

.3

- . 1

II

5.8

5.8

5.8

5.1

.4

.3

I II

5.6

5.6

5.6

5.2

.3

.1

IV

6.4

6.4

6.4

4.9

.4

1.0

Year

23.0

23.0

23.0

20.2

1.4

1.4

1957

I

6.6

6.6

6.6

5.1

.4

1.1

II

6.8

6.8

6.8

5.4

.5

1.0

III

6.1

6.1

6.1

5.4

.3

.4

IV

6.4

6.4

6.4

5.2

.4

.9

Year

26.0

26.0

26.0

21.0

1.5

3.5

Line

1

2

3

4

5

6

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184 NATIONAL INCOME AND PRODUCT TABLES

Table IV-4.—Relation of Foreign Transactions in the National Income Accounts to Balance of Payments, 1946-57 1

[Millions of dollars]

Line

Exports of goods and services, total—BP

 2

Less: Net military grants

Equals: Goods and services, excluding net military grants -

Less: Net Government grants in kind, nonmilitary

Income on investments—Government

Equals: Exports of goods and services—NIA3__

Imports of goods and services, total—BP

Plus: Net private remittances

Less: Income on investment—Government

Equals: Imports of goods and services—NIA.

Balance on goods and services, total—BP [lines (1) minus

(7)].

Total excluding net military grants [lines (3) minus (7)]. ...

Net exports of goods and services—NIA [lines (6) minus

(10)].

Net unilateral transfers to foreign countries, total—BP

Less: Net military grants

Equals: Totalexcluding net military grants

Less: Net private remittances

Net Government grants in kind, nonmilitary . ...

Plus: Net income on investments—Government [lines (9)

minus (5)].

Equals: Net transfer payments by Government—NIA

Net foreign investment—BP=NIA

(14)=(12) minus (16)=(13) minus (20)

[lin

)].

tes (11) minus

1946

14,804

69

14, 735

1,922

21

12,792

•7,241

650

15

7,876

*7,563

7,494

4,916

2,968

69

2,899

650

1,922

- 6

321

* 4,595

1947

19,780

43

19, 737

1,771

66

17,900

8,208

669

16

8,861

11,572

11,529

9,039

2,655

43

2,612

669

1,771

- 50

122

8,917

1948

17,089

300

16, 789

2,182

102

14,505

10,349

683

17

11,015

6,740

6, 440

3,490

4,811

300

4,511

683

2,182

- 85

1,561

1,929

1949

16,061

210

15, 851

1,795

98

13,958

9,702

521

25

10,198

6,359

6,149

3,760

5,837

210

5,627

521

1.795

- 73

3,238

522

1950

14,427

526

13,901

694

109

13,098

12,098

444

31

12,511

2,329

1,803

587

4,533

526

4,007

414

694

- 78

2,791

-2,204

1951

20,333

1,470

18,863

808

198

17,857

15,142

386

47

15,481

5,191

3,721

2,376

4,962

1,470

3,492

386

808

-151

2,147

229

1952

20,708

2,603

18,105

470

204

17,431

15,760

417

64

16,113

4,948

2,345

1,318

5,108

2,603

2, 505

417

470

-140

1,478

-160

1953

21,335

4,254

17,081

229

252

16,600

16,644

476

86

17,034

4,691

437

-434

6,708

4, 254

2, 454

476

229

-166

1,583

-2,017

1954

21,110

3,161

17, 949

201

272

17,476

16,088

4S6

59

16,515

5,022

1. 861

961

5,423

3,161

2,262

486

201

-213

1,362

-401

1955

22,328

2,325

20,003

348

274

19,381

17,937

444

94

18,287

4,391

2,066

1,094

4,811

2,325

2,486

444

348

-180

1,514

-420

1956

26,123

2,605

23, 518

369

194

22,955

19,810

503

154

20,159

6,313

3,708

2,796

4,937

2, 605

2,332

503

369

- 40

1,420

1,376

1957

28,916

2,440

26. 476

317

205

25,954

20,707

535

201

21,041

8,209

5, 769

4,913

4,747

2,440

2,307

535

317

- 4

1,451

3,462

Line

10

11

12

13

14

15

16

17

18

19

20

1. Reconciliation items are obtained from published and unpublished balance of payments

data.

2. BP—balance of payments.

3. NIA—national income accounts.

4. Includes an adjustment for geographical coverage. Total imports of goods and services

were increased by $250 million, and the balance on goods and services, and net foreign investment, respectively, decreased by the same amount. (See footnote 1, page 139 of the 1954

National Income supplement.)

Table IV-5.—-Balance of Payments on Goods, Services, and Unilateral Transfers, 1946—57

[Millions of dollars]

Line

10

11

12

13

14

15

16

17

18

19

20

21

Exports of goods and services, total

Military supplies and services transferred under grants,

net.

Goods and services, excluding military transferred under grants, total.

Merchandise, adjusted i.

Transportation

Travel

Miscellaneous services:

Private

Government1

Military transactions

Income on investments:

Direct investments

Other private

Government

Imports of goods and services, total

Merchandise, adjusted, excluding military

Transportation

Travel

Miscellaneous services:

Private

Government, excluding military

Military expenditures

Income on investments:

Private

Government

Balance on goods and services:

Total

Excluding military supplies and services transferred

under grants.

Unilateral transfers, net [to foreign countries (—)]:

Total

Excluding military supplies and services

Private remittances .

Government:

Military supplies and services

Other grants

Pensions and other transfers

1946

14,804

69

14, 735

11, 707

1,383

271

471

131

0)

589

162

21

6,991

5,073

459

462

190

102

493

197

15

7,813

7,744

-2,968

-2,899

-650

- 69

- 2 , 274

25

1947

19,780

43

19, 737

16, 015

1,738

364

448

70

0)

869

167

66

8,208

5,979

583

573

195

178

455

229

16

11,572

11,529

-2,655

- 2 , 612

-669

- 43

-1,897

- 46

1948

17,089

300

16, 789

13,193

1,317

334

505

100

0)

1,064

174

102

10,349

7,563

646

631

219

211

799

263

17

6,740

6,440

-4,811

-4,511

-683

-300

- 3 , 894

66

1949

16,061

210

15,851

12,149

1,238

392

545

132

0)

1,112

185

98

9,702

6,879

700

700

234

235

621

308

25

6,359

6,149

-5,837

- 5 , 627

-521

-210

- 4 , 997

-109

1950

14,427

526

13,901

10,117

1,033

419

607

132

0)

1,294

190

109

12,098

9,108

818

754

247

250

576

314

31

2,329

1,803

-4,533

-4,007

-444

-526

-3,484

- 79

1951

20,333

1,470

18,863

14,123

1,556

473

677

152

0)

1,492

192

198

15,142

11, 202

974

757

330

254

1,270

308

47

5,191

3,721

-4,962

-3,492

-386

-1,470

-3,035

- 71

1952

20,708

2,603

18,105

13, 319

1,488

550

714

206

0)

1,419

205

204

15,760

10, 838

1,115

840

343

277

1,957

326

64

4,948

2,345

-5,108

-2,505

-417

-2,603

-1,960

-128

1953

21,335

4,254

17, 081

12, 281

1,198

574

754

172

192

1,442

216

252

16,644

10,990

1,081

929

392

267

2,535

364

86

4,691

437

-6,708

-2,454

-476

- 4 , 254

-1,837

-141

1954

21,110

3,161

17, 949

12, 799

1,171

595

829

149

179

1,725

230

272

16,088

10, 354

1,026

1,009

429

248

2,603

360

59

5,022

1,861

-5,423

- 2 , 262

-486

-3,161

-1,647

-129

1955

22,328

2,325

20,003

14,280

1,420

654

879

122

204

1,912

258

274

17,937

11, 527

1,204

1,153

486

242

2,823

408

94

4,391

2,066

-4,811

-2,486

-444

-2,325

-1,901

-141

1956

26,123

2,605

23,51^

17, 321

1,619

705

938

121

156

2,160

304

194

19,810

12, 791

1,432

1,275

520

264

2,910

464

154

6,313

3,708

-4,937

-2,332

-503

-2,605

-1,695

-134

1957

28,916

2,440

26, 476

f 19, 327

1,847

785

lj, 131

J 37

3C8

2,313 ,

363

205

20,707

13,291

1,428

1,372

531

312

3,120

452

201

8,209

5,769

-4,747

-2,307

-535

- 2 , 440

-1,613

-159

Line

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

1. Military transactions prior to 1953 are included in merchandise and in Government services (lines 4 and 8).

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FOREIGN TRANSACTIONS 185

Table IV-6.—United States Government Net Foreign Assistance, 1946-57 l

[Billions of dollars]

Line

Total 2.

Grants

Long-term credits.__

Short-term credits 3.

Military supplies and services (grants)...

Western Europe and dependent areas..

O ther areas

Other aid.

Western Europe and dependent areas

Near East (including Greece and Turkey) and AfricaSouth Asia

Other Asia and Pacific

American Republics

Unspecified areas

1946

5.5

2.9

2.6

.1

5.4

3.3

.2

.0

1947

5.7

1.9

3.9

.0

.0

5.7

4.3

.1

.0

.9

. 1

.3

1948

5.3

4.3

1. 1

.4

4.9

3.8

.2

.0

.8

.0

.1

1949

5.7

5.2

.5

.2

.2

5.4

4.2

.2

.0

.9

1950

4.2

4.0

. 1

.5

.3

.2

3.6

2.7

.2

.0

.6

.0

.1

4.6

4.5

. 1

1.5

3.2

2. 1

.3

.1

.5

. 1

.0

1952

5.0

4.6

.4

2.7

2.4

1.4

.4

.1

.4

.1

.0

1953

6,4

6 1

2

.0

4.3

3. 1

1.2

2.1

4.9

4.9

- . 1

.2

3.2

2.0

1.2

1.7

1955

4.6

4.3

- . 1

.3

2.4

1.4

1.0

2.2

.7

.4

.2

.7

.1

.1

1956

4.9

4.4

.0

.6

2.6

1.6

1.1

2.3

.4

.4

.3

1.0

.2

.1

1957

5.1

4.1

.3

2.5

1. 1

1.4

2.6

.5

.3

.3

1.0

.2

.2

Line

10

11

12

13

14

1. A reconciliation of the net foreign assistance items as shown in this table with comparable

entries in the balance of payments is given in the Balance of Payments Statistical Supplement,

Office of Business Economics, 1958, pp. 120-3.

2. Does not include the U.S. Government capital investment in the International Bank

for Reconstruction and Development, International Finance Corporation, and International

Monetary Fund; as follows: 1946, $0.3 billion; 1947, $3.1 billion; 1956, less than $50 million.

3. Short-term claims acquired by the U. S. Government under agricultural sales programs,

less short-term liability for currencies advanced by foreign governments pending delivery

of agricultural commodities.

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V. Saving and Investment

PAGE

V-l. Sources and Uses of Gross Saving, 1946-57 (5) 188

V-2. Sources and Uses of Gross Saving, Seasonally Adjusted Quarterly Totals at

Annual Rates, 1946-57 188

V-3. New Construction Activity, by Type, 1946-57 (31) 190

V-4. New Construction Activity, by Type, in Constant Dollars, 1946-57 191

V-5. Private Purchases of Producers' Durable Equipment, 1946-54 (32) 192

V-6. Private Purchases of Producers' Durable Equipment, in Constant Dollars,

1946-54 192

V-7. Expenditures on New Plant and Equipment by U. S. Business, 1946-57 193

V-8. Net Change in Business Inventories, 1946-57 (33) 193

V-9. Securities and Exchange Commission Estimates of Personal Saving and Its

Disposition and Comparison with Office of Business Economics Estimates

of Personal Saving, 1946-57 (6) 194

V-10. Sources and Uses of Corporate Funds, 1946-57 195

V-ll. Balance of Payments on Capital Account, 1946-57 195

V-l 2. Private Purchases of Structures and Equipment for Manufacturing Establishments, 1929-57 196

V-l 3. Depreciation on Privately Owned Structures and Equipment in Manufacturing Establishments, 1929-57 196

V-l 4. Net Formation of Privately Owned Structure and Equipment Capital in

Manufacturing Establishments, 1929-57 196

V-l 5. Real Net Value of Privately Owned Structures, Equipment, and Inventories

in Manufacturing Establishments, End of Year, 1928-57 196

*Figures in parentheses refer to corresponding tables in the 1954 National Income supplement.

466759 O—59 13

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188 NATIONAL INCOME AND PRODUCT TABLES

Table V-l.—Sources and Uses of Gross Saving, 1946-57 l

[Millions of dollars]

Line

15

Gross private saving

Personal saving

Undistributed corporate profits

Corporate inventory valuation adjustment.

Depreciation charges

Accidental damage to fixed business capital-.

Capital outlays charged to current expense...

Excess of wage accruals over disbursements..

Government surplus on income and product transactions

F ederal

State and local

Gross investment.

Gross private domestic investmentNet foreign investment

Statistical discrepancy.

1946

26,517

13, 460

7, 656

-5,263

9,041

407

1,246

- 3 0

4,130

2,186

1,944

32,735

28,140

4,595

2,088

1947

23,571

4, 704

11,721

-5,899

11,062

567

1,401

15

13,264

12,176

1,088

40,376

31, 459

8,917

3,541

1948

37,615

10, 987

13, 274

- 2 . 152

13, 101

574

1, 796

35

8,248

7,997

251

45,016

43,087

1,929

-847

1949

36,102

8,496

8, 522

1,856

15,091

518

1, 665

- 4 6

-3,113

- 2 , 537

-576

33,499

32,977

522

510

40,321

12, 642

13, 555

-4,965

16, 500

616

1,949

24

8,179

9, 189

-1,010

47,766

49, 970

- 2 , 204

-73 4

49,198

17,676

10, 677

-1,199

18, 753

909

2,308

74

6,118

6,417

-299

56,563

56, 334

229

1,247

52,184

18,940

8.278

981

20, 872

684

2, 451

- 2 2

-3,855

-3,906

51

49,703

49, 863

-160

1,374

54,142

19, 825

8,864

-997

23, 066

813

2,647

- 7 6

-7,102

-7,374

272

48,323

50, 340

-2,017

1,283

1954

54,353

18,860

7,002

-318

25, 202

917

2, 690

0

-6,735

- 5 , 793

-942

48,471

48,872

-401

853

59,578

17, 508

11,820

-1,736

27, 943

1,055

2,988

0

2,857

3.842

-985

63,423

63,843

-420

64,208

21,054

11,033

- 2 , 560

30, 755

729

3,197

0

6,283

6,837

-554

69,556

68,180

1,376

-935

1957

66,324

20, 707

9,422

-1,548

33, 704

897

3, 142

0

1,705

2,876

-1,171

68,754

65,292

3,462

Line

10

11

13

14

1. In principle gross private saving plus government surplus on income and product transactions equals gross investment. Because of estimating errors, it differs from it by the amount of

the statistical discrepancy.

Table V-2.—Sources and Uses of Gross Saving, Seasonally Adjusted Quarterly Totals at Annual Rates, 1946-47 ]

[Billions of dollars]

Line

Gross private saving..

Personal saving

Undistributed corporate profits

Corporate inventory valuation adjustmentCapital consumption allowance

Excess of wage accruals over disbursements..

Government surplus on income and product transactions..

Federal

State and localGross investment..

Gross private domestic investment.

Net foreign investment

Statistical discrepancy.

1946

I

29.5

16.3

3.5

1 o

10.1

.8

-7. 1

-9. 3

2.2

25.4

22.1

3.3

3.0

II

27.8

15.1

5.9

-2. 8

10.5

- . 9

2.7

2^0

33.3

29.0

4.3

2.8

III

23.5

11.2

9.6

-8. 1

10.8

.0

9.1

7.3

1.8

35.9

29.6

6.2

3.2

IV

25.0

11.0

11.6

-8. 9

11.3

.0

11.7

10. 1

1.6

36.4

31 8

4.5

- . 4

Year

26.5

13.5

7.7

-5. 3

10.7

.0

4.1

2.2

1.9

32.7

28.1

4.6

2.1

1947

I

22.2

8.1

11.8

-9. 7

11.9

.0

14.2

12.9

1.3

38.8

29.8

9.0

2.3

II

20.4

.9

11.2

-4. 7

12.9

.0

14.6

13.2

1.4

38.5

29.2

9.3

3.5

III

25.6

5.1

11.2

-4. 0

13.3

.0

9.6

8.7

.9

39.4

29.6

9.7

4.2

IV

25.9

4.5

12.5

-5. 2

14.1

.0

14.5

13.9

.7

44.3

36.7

7.7

3.9

Year

23.6

4.7

11.7

-5. 9

13.0

0

13.3

12.2

1.1

40.4

31.5

8.9

3.5

1. Footnote to table V-l is relevant to this table also.

Table V-2.—Sources and Uses of Gross Saving, Seasonally Adjusted Quarterly Totals at Annual Rates, 1952-53 *

[Billions of dollars]

Line

Gross private saving..

Personal saving

Undistributed corporate profits

Corporate inventory valuation adjustment..

Capital consumption allowance

Excess of wage accruals over disbursements..

Government surplus on income and product transactions..

Federal

State and local

Gross investment..

Gross private domestic investmentNet foreign investment

Statistical discrepancy.

1952

51.1

17.5

8.8

1.3

23.4

.1

.9

1.0

- . 1

54.3

52.2

2.0

2.3

II

50.8

17.9

7.7

1.2

23.9

.1

-4. 3

-4. 2

- . 1

46.5

45.6

.9

.0

III

53.6

21.5

7.6

.7

24.1

- . 3

-7. 0

-7. 2

.2

47.4

49.1

-1. 7

IV

52.8

18.4

9.0

24.7

.0

-4. 7

-5. 1

.4

50.7

52.6

-1. 9

2.6

Year

52.2

18.9

8.3

1.0

24.0

.0

-3. 9

-3.9

.1

49.7

49.9

- . 2

1.4

1953

54.2

19.0

10.1

- . 4

25.6

.0

-5. 5

-5. 1

- . 4

49.9

52.0

-2. 1

1.1

II

54.2

19.6

10.2

26.2

- . 1

-5. 9

-7. 0

1.2

50.3

52.9

-2. 6

2.0

III

53.7

19.7

9.3

-2. 0

26.8

- . 1

-5. 4

-5. 6

.3

49.1

51.1

-2. 0

IV

51.3

21.6

5.4

.0

27.4

- . 1

-11.8

-11.8

.0

43.8

45.2

-1. 4

1.2

Year

54.1

19.8

8.9

-1. 0

26.5

- . 1

-7. 1

-7. 4

.3

48.3

50.3

-2. 0

1.3

1. Footnote to table V-l is relevant to this table also.

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SAVING AND INVESTMENT 189

Table V-2.—Sources and Uses of Gross Saving, Seasonally Adjusted Quarterly Totals at Annual Rates, 1948-51

[Billions of dollars]

1948

I

30.2

4.8

13.3

-2. 9

14.8

.1

14.3

13.9

.4

44.1

39.9

4.2

- . 3

II

37.9

11.4

13.9

-2. 9

15.4

.1

8.9

8.5

.4

45.3

43.2

2.1

-1. 5

I II

40.3

14.4

13.4

-2. 8

15.5

- . 2

5.9

5.8

2

45.7

45.2

.5

- . 5

IV

41.9

13.2

12.5

- . 1

16.1

.1

4.1

3.8

.3

44.8

43.9

.9

-1. 2

Year

37.6

11.0

13.3

-2. 2

15.5

.0

8.2

8.0

.3

45.0

43.1

1.9

o

1949

i

39.3

11.6

9.7

1.4

16.6

.1

-1. 5

-1. 4

- . 1

38.4

36.8

1.6

.6

II

36.3

9.1

7.7

2.8

17.0

- . 3

-4. 4

-3. 9

- . 5

31.4

30.8

.6

- . 5

III

37.4

8.1

8.8

3.0

17.5

.0

-3. 5

-2. 8

- . 7

34.3

33.7

.7

.4

IV

31.4

5.3

8.0

.2

18.0

.0

-3. 2

-2. 1

-1. 0

29.8

30.6

- . 8

1.5

Year

36.1

8.5

8.5

1.9

17.3

.0

-3. 1

-2. 5

- . 6

33.5

33.0

.5

.5

I

41.9

15.2

8.9

18^5

.0

-5. 2

-3. 8

-1. 4

38.9

39.8

- . 9

2.3

II

39.7

11.8

12.4

-3. 3

18.9

.0

6.9

8.3

-1. 3

44.6

46.9

-2. 3

-2. 1

1950

in

34.1

5.8

16.5

-7. 3

19.1

.0

16.4

17.0

- . 6

48.2

51.1

-3. 0

-2. 3

IV

45.5

17.6

16.5

-8. 5

19.8

.1

14.6

15.3

- . 7

58.7

61.4

-2. 7

-1. 3

Year

40.3

12.6

13.6

-5. 0

19.1

.0

8.2

9.2

-1. 0

47.8

50.0

-2. 2

- . 7

I

34.6

8.2

14.1

-8. 7

20.7

.2

20.4

20.2

.1

54.6

56.9

-2. 3

- . 3

II

52.3

20.9

11.0

-1. 0

21.5

i

7.8

8.1

Q

61.0

61.6

- . 6

1.0

1951

III

56.0

20.7

8.7

3.5

22.4

.8

- . 9

- . 3

n

58.2

56.3

1.9

3.1

IV

53.7

20.4

9.2

1.5

23.2

- . 6

-2. 5

-2. 4

- . 1

52.9

51.0

1.9

1.7

Year

49.2

17.7

10.7

-1. 2

22.0

.1

6.1

6.4

- . 3

56.6

56.3

.2

1.2

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

Table V-2.—Sources and Uses of Gross Saving, Seasonally Adjusted Quarterly Totals at Annual Rates, 1954-57 *

[Billions of dollars]

1954

I

55.5

21.0

6.7

.0

27.9

.0

-10.9

-10. 6

- . 3

45.6

46.6

-1. 0

1.0

II

53.7

18.3

7.0

.0

28.5

.0

-6. 1

-5. 4

—. 7

46.8

47.2

- . 4

- . 8

III

53.4

18.0

7.0

- . 7

29.1

.0

-6. 4

-5. 1

-1. 3

47.9

48.8

- . 9

. 8

IV

55.1

17.7

8.0

- . 5

29.9

.0

-3. 7

-2. 3

-1. 4

53.1

52.3

.7

1.7

Year

54.4

18.9

7.0

- . 3

28.8

.0

-6. 7

-5. 8

- . 9

48.5

48.9

- . 4

. 9

1955

I

55.3

14.4

11.1

-1. 1

30.8

.1

- . 7

.8

-1. 5

58.4

58.8

- . 5

3.7

II

60.4

17.8

11.5

- . 9

31.6

.5

2.1

3.5

-1. 4

62.3

63.1

- . 2

III

59.4

16.8

13.0

-2. 2

32.4

- . 6

4.9

5.5

- . 6

65.5

65.4

• 1

1.2

IV

62.8

19.8

12.8

-2. 8

33.0

.0

5.1

5.6

A

67.1

67.6

- . 5

- . 9

Year

59.6

17.5

11.8

-1. 7

32.0

.0

2.9

3.8

-1. 0

63.4

63.8

- . 4

1.0

1956

I

60.5

17.9

11.7

-2. 8

33.7

.0

7.2

7.7

- . 5

67.5

68.0

- . 5

- . 2

II

63.4

21.6

10.7

-3. 2

34.3

.0

6.9

7.3

- . 4

69.0

67.7

1.3

-1. 3

III

66.2

22.4

10.2

-1. 5

35.0

.0

5.4

5.8

- .4

70.0

68.1

2.0

-1. 5

IV

66.5

21.7

11.9

-2. 7

35.7

.0

5.5

6.5

-1. 0

71.6

68.8

2.8

- . 5

Year

64.2

21.1

11.0

-2. 6

34.7

.0

6.3

6.8

- . 6

69.6

68.2

1.4

- . 9

1957

I

65.1

20.3

10.6

-2. 4

36.6

.0

4.1

5.5

-1. 4

70.1

65.9

4.2

. 9

II

68.4

23.2

9.2

-1. 5

37.5

.0

1.3

2.6

-1. 3

71.2

67.0

4.2

1.5

III

66.8

20.4

9.4

-1. 1

38.1

.0

2.8

3.4

- . 6

70.3

66.7

3.6

.7

I V

64.9

19.6

8.0

-1. 1

38.5

.0

-2. 3

- . 2

-2. 1

63.4

61.5

1.9

.7

Year

66.3

20.7

9.4

-1. 5

37.7

.0

1.7

2.9

-1. 2

68.8

65.3

3.5

.7

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
190 NATIONAL INCOME AND PRODUCT TABLES

Table V-3.—New Construction Activity, by Type, 1946-57 i

[Millions of dollars]

Line

Total new construction activity

New private construction activity

Residential buildings (excluding farm)

New dwelling units

Additions and alterations

Nonhousekeeping units

Nonresidential buildings (excluding farm)2

Industrial buildings

Warehouses, office and loft buildings,..

Stores, restaurants, and garages

Other nonresidential buildings

Religious

Educational

Hospital and institutional

Social and recreational

Miscellaneous

Public utilities

Railroads

Telephone and telegraph

Other public utilities3

Farm construction

Residential

Nonresidential

Petroleum and natural gas well drilling

All other private4

New public construction activity

Residential buildings .

Nonresidential buildings

Industrial

Educational

Hospital and institutional

Other nonresidential buildings

 5

Military facilities

Highways

Sewer and water systems

Miscellaneous public service enterprises

Conservation and development

All other public

 6

1946

13,390

11,028

4,752

3,300

1,307

145

3,341

1,689

331

801

520

76

123

85

125

111

1,374

258

305

811

856

409

447

653

52

2,362

374

354

113

101

85

55

895

194

84

260

13

1947

18,688

15,254

7,535

5,450

1,960

125

3,142

1,702

237

619

584

126

174

110

99

75

2,338

318

510

1,510

1,397

683

714

773

69

3,434

200

599

96

287

85

131

204

1,451

351

141

424

64

1948

24,281

19,454

10,122

7,500

2,467

155

3, 621

1,397

352

901

971

251

253

126

224

117

3, 043

379

713

1,951

1,544

738

806

1,059

65

4,827

156

1,301

196

618

223

264

158

1,774

535

164

670

1949

25,217

18,813

9,642

7,257

2,200

185

3,228

972

321

706

1,229

360

269

202

262

136

3,323

352

533

2,438

1,488

695

793

1,054

78

6,404

359

2,068

177

934

477

480

137

2,131

619

184

852

54

1950

31,216

24,215

14,100

11, 525

2,400

175

3,777

1,062

402

886

1,427

409

294

344

247

133

3,330

315

440

2,575

1,635

763

872

1,261

112

7,001

345

2,384

224

1,133

496

531

177

2,272

659

160

942

62

1951

34,230

24,811

12,529

9,849

2,490

190

5,152

2,117

544

827

1,664

452

345

419

164

284

3,729

399

487

2,843

1,846

863

983

1,491

64

9,419

595

3,497

974

1,513

528

482

887

2, 518

775

184

912

51

1952

36,433

25,532

12, 842

9,870

2,787

185

5,014

2,320

515

622

1,557

399

351

394

125

288

4,003

438

570

2,995

1,905

890

1, 015

1,683

85

10,901

654

4,136

1,684

1,619

473

360

1,388

2,820

790

168

900

45

1953

38,982

27,588

13, 777

10, 555

2, 955

267

5,680

2,229

739

1, 052

1,660

472

426

317

163

282

4,416

442

615

3,359

1,731

809

922

1,864

120

11,394

556

4,346

1,771

1,714

365

496

1,307

3,160

883

167

892

83

1954

41,644

29,722

15, 379

12, 070

3,013

296

6,250

2,030

958

1,254

2,008

593

529

337

228

321

4,284

353

655

3,276

1,645

769

876

2,043

121

11,922

336

4,636

1,506

2, 134

360

636

1,030

3,870

982

189

773

106

1955

46,902

34,941

18, 705

14,990

3,376

339

7,611

2,399

1,311

1,907

1,994

734

492

351

239

178

4,543

374

805

3,364

1,600

750

850

2,321

161

11,961

266

4,218

721

2,442

322

733

1,313

4,050

1,085

233

701

95

/1956

48,737

35,732

17, 677

13, 535

3,695

447

8,817

3,084

1,684

1,947

2,102

768

536

328

275

195

5,113

427

1,066

3,620

1,560

730

830

2,445

120

13,005

292

4,074

453

2,556

298

767

1,395

4,655

1,275

384

826

104

1957

50,837

36,483

17, 019

12, 615

3,903

501

9,556

3,557

1 893

1^ 671

2,435

868

525

525

311

206

5,774

406

1,068

4,300

1,590

744

846

2,345

199

14,354

506

4,486

473

2,825

333

855

1,322

5,215

1,344

393

971

117

Lin

1

2

3

4

5

6

7

8

r

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

1. These construction data are published by the Business and Defense Sci vices Administration of the Department of Commerce and the Bureau of Labor Statistics of the Department

of Labor, except for petroleum and natural gas well drilling which is estimated by the Office

of Business Economics.

2. Excludes nonresidential building by privately owned public utilities.

3. Consists of local transit, petroleum pipeline, electric light and power (including construction with Rural Electrification Administration funds), and manufactured and natural gas.

4. Consists of sewer and water, roads, bridges, and miscellaneous nonstructural items such

as parks and playgrounds.

5. Consists of public administration, social and recreational, commercial, and miscellaneous

nonresidential.

6. Includes publicly owned parks and playgrounds, memorials, etc.

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Federal Reserve Bank of St. Louis
SAVING AND INVESTMENT 191

Table V-4.—New Construction Activity, by Type, in Constant Dollars, 1946-57 *

[Millions of 1954 dollars]

Line

1

2

3

4

5

6

Total new construction activity

New private construction activity

Residential buildings (excluding farm)

Nonresidential buildings (excluding farm).

Public utilities

Farm construction

Petroleum and natural gas well drilling

All other private

New public construction activity

Residential buildings

Nonresidential buildings

Military facilities

Highways

Sewer and water systems

Miscellaneous public service enterprises....

Conservation and development

All other public

1946

21,048

17,495

7,367

5,501

2,307

1,271

960

89

3,553

567

614

289

1,142

331

149

443

18

1947

24,361

19,981

9,641

4, 131

3, 348

1,689

1,071

101

4,380

267

806

256

1,607

514

216

619

1948

28,551

22,982

11,597

4,279

3,977

1,721

1,322

86

5,569

178

1,553

180

1,754

705

225

880

94

1949

30,184

22,675

11.408

3,862

4,253

1,713

1,340

99

7,509

422

2,497

158

2,232

795

244

1,088

73

1950

35,743

27,659

15, 670

4,410

4, 064

1,834

1,545

136

8,084

384

2,806

202

2,483

800

200

1,136

73

1951

36,303

26,306

12,993

5,529

4,130

1,872

1,709

73

9,997

612

3,795

931

2,464

888

205

1,045

57

1952

37,321

26,267

12,966

5,169

4,313

1,904

1,822

93

11,054

658

4,284

1,412

2,611

867

183

990

49

1953

39,038

27,712

13, 679

5, 725

4, 546

1,719

1,919

124

11,326

549

4, 306

1, 305

2, 991

924

173

931

87

1954 1955

41,644

29,722

15,379 |

6, 250

4,284

1, 645

2,043

121

11,922

336

4,636

1,030

3,870

982

189

773

106

45,555

33,877

18,148

7,405

4,398

1,564

2,210

152

11,678

255

4,111

1,283

3,999

1, 043

223

673

91

1956

44,890

32,928

16, 427

8,098

4.552

1,466

2,276

109

11,962

269

3,779

1,282

4,279

1,165

341

753

94

1957

45,153

32,

15

8,

4,

1,

2,

461

531

356

837

444

121

172

12,692

3

1,

4

1

458

984

160

638

173

330

846

103

Line

1

2

3

4

5

6

10

11

12

13

14

15

16

17

1. These figures are derived from those published in terms of 1947-49 dollars by the Business

and Defense Services Administration of the Department of Commerce and the Bureau of

Labor Statistics of the Department of Labor, except for petroleum and natural gas well

drilling which is estimated by the Office of Business Economics. They differ from the construction components of gross national product because the deflators used here reflect largely

changes in construction costs whereas those underlying the gross national product components

account also for changes in profit margins of construction firms, in an attempt to approximate

more closely the selling prices in terms of which the current dollar figures are expressed.

Implicit price deflators are shown in table VII-14.

Footnotes to table V-3 are relevant to this table also.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
192 NATIONAL INCOME AND PRODUCT TABLES

Table V-5.—Private Purchases of Producers'* Durable Equipment, 1946-54 l

[Millions of dollars]

Line 1946 1947 1948 1949 1950 1951 1952 1953 1954 Line

Total

Furniture and fixtures

Cutlery and hand tools

Fabricated metal products (except cutlery and hand tools)

Engines and turbines

Tractors ,

Agricultural machinery (except tractors)

Construction machinery

Mining and oilfield machinery

Metalworking machinery

Special-industry machinery, n. e. c

General industrial machinery

Office and store machines

Service-industry and household machines

Electrical machinery

Trucks, buses, and trailers

Passenger cars

Aircraft

Ships and boats

Railroad equipment

Instruments

Miscellaneous equipment

10,733

500

353

317

52

298

351

323

301

779

837

863

443

456

1,129

1,376

995

156

174

359

226

445

16,667

690

348

506

148

544

676

408

352

834

1,340

1,170

588

873

2,061

2,283

1,889

145

236

631

335

610

18,925

641

370

492

214

759

1,057

564

497

803

1,414

1,287

680

1,263

1,895

2,592

2,167

75

120

1,004

360

671

17,236

583

336

390

196

857

1,077

402

413

619

1,144

1,024

622

877

1,631

2,103

2,838

103

102

1,030

328

561

18,940

635

348

392

234

872

1,050

445

504

973

1,278

1,032

684

867

1,836

2,651

3,221

60

95

756

356

651

21,290

425

433

292

1,012

1,178

539

711

1,127

1,588

1,271

804

789

2,017

3,186

2,669

86

153

1,072

359

686

21,264

417

379

321

1,075

1,235

678

788

1,200

1,496

1,514

956

921

2,247

2,414

2,314

174

207

953

362

727

22,305

856

391

423

344

1,000

1,051

563

784

1,531

1,590

1,743

1,195

1,047

2,302

2,314

2, 598

147

258

503

796

20,789

1,021

331

458

406

789

907

440

599

1,576

1,411

1,785

1,161

1,027

2,282

2,032

2,383

173

283

541

490

10

11

12

13

14

15

16

17

18

19

20

21

22

n. e. c—Not elsewhere classified.

1. The system of commodity classification underlying this table is given in Exhibit 1, page 126, of the 1954 National Income supplement.

Table V-6.—Private Purchases of Producers' Durable Equipment, in Constant Dollars, 1946-54 l

[Millions of 1954 dollars]

Line 1946 1947 1948 1949 1950 1951 1952 1953 1954 Line

22

Total

Furniture and fixtures

Cutlery and hand tools

Fabricated metal products (except cutlery and hand tools)

Engines and turbines

Tractors

Agricultural machinery (except tractors)

Construction machinery

Mining and oilfield machinery

Metalworking machinery

Special-industry machinery, n. e. c

General industrial machinery

Office and store machines

Service-industry and household machines

Electrical machinery

Trucks, buses, and trailers

Passenger cars

Aircraft

Ships and boats

Railroad equipment

Instruments

Miscellaneous equipment

16,098

779

605

510

490

555

533

493

1,227

1,286

1,480

503

727

1,648

1,890

1,337

261

269

484

308

633

21,703

904

528

660

207

771

952

583

501

1,181

1,833

1, 723

622

1, 132

2, .535

2,791

2,277

212

334

795

414

748

22,761

786

510

593

282

948

1,307

717

637

1,057

1, 785

1,728

710

1,527

2,240

2,912

2,390

102

156

1,201

416

757

19,808

699

434

469

254

1,002

1,238

481

500

782

1,378

1,269

649

1,015

1,908

2,266

3,004

132

129

1,196

378

625

21,285

728

417

454

297

999

1,174

518

596

1,160

1,490

1,226

703

992

2,082

3,399

74

116

867

404

701

21,996

473

452

327

1,073

1,204

563

760

1,203

1,656

1,335

794

818

2,056

3,208

2,695

97

173

1,150

375

676

21,801

910

463

399

347

1,113

1,251

702

836

1,250

1,557

1,599

958

950

2,346

2,369

2,218

191

225

1,001

381

735

22,522

409

430

354

1,005

1,061

571

803

1,554

1,619

1,791

1,187

1,050

2,371

2,291

2,549

153

265

876

516

801

20,789

1,021

331

458

406

789

907

440

599

1,576

1,411

1,785

1,161

1,027

2,282

2,032

2,383

173

283

541

490

694

10

11

12

13

14

15

16

17

18

19

20

21

22

n. e. c—Not elsewhere classified.

1. See footnote 1 to table V-5 for reference to system of commodity classification.

Implicit price deflators are shown in table VII-15.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
SAVING AND INVESTMENT 193

Table V-7.—Expenditures on New Plant and Equipment by U. S. Business, 1946-57 l

[Millions of dollars]

Line

1

2

3

4

5

6

Total

Manufacturing _ _..

Durable-goods industries

Primary iron and steel

Primary nonferrous metals

Electrical machinery and equipments

Machinery, except electrical

Motor vehicles and equipment.,.

Transportation equipment, excluding motor vehicles

Stone, clay, and glass products

Other durable goods

 2

 .. .

Nondurable-goods industries

Food and beverages

Textile-mill products-_ ...

Paper and allied products ._

Chemicals and allied products

Petroleum and coal products

Rubber products

Other nondurable goods

 3

Mining

Railroads

Transportation, other than rail

Public utilities

Communications.. _

Commercial and other

 4

194G

14,848

6,790

3,112

500

93

282

511

591

109

241

785

3,678

670

342

232

800

1.087

139

408

427

583

923

792

817

4,516

20,612

8,703

3,407

638

178

304

519

504

95

326

843

5,296

946

510

371

1, 060

1,736

143

530

691

1,298

1,539

1,399

6,093

1948

22,059

9,134

3,483

772

193,

289

527

474

106

269

853

5,651

1,053

618

383

941

1949

19,285

7,149

2,593

596

151

216

383

348

87

181

631

4,555

875

471

298

670 |

2,

1,

1,

2

1,

100

102

454

882

319

285

543

742

5,154

1,789

81

371

792

1,352

887

3,125

1,320

4,660

1951

5,168

1, 198

310

373

083

851

219

397

1, 136

5,684

853

531

420

1,247

2,102

150

382

1952

26,493

11,632

5,614

1,511

512

386

701

855

211

330

1,107

6,018

709

434

364

1,386

2, 535

154

377

985

1,396

1,500

3,887

1,537

5,557

1953

28,

11,

5,

1,

1,

6,

322

908

648

210

412

475

797

S89

180

346

239

260

812

1954

26,827

11

5

1

1

5

038

091

754

246

439

694

295

191

361

110

948

765

1,

2,

1,

1,

4,

1,

B,

378

4'J9

428

6>>8

101

404

986

311

565

552

690

310

331

455

1,130

2,684

131

451

975

854

1,512

4,219

1,717

6,513

1955

28,701

11 439

5,436

1

1

6

1

2

1,

4,

1,

7,

863

214

436

809

128

274

498

214

003

718

366

518

016

798

150

437

957

923

602

309

983

488

1956

35,081

14,954

7,623

1,268

412

603

1,078

1,689

440

686

1,447

7,331

799

465

801

1,455

3,135

201

475

1,241

1,231

1,712

4,895

2,684

8,364

1957

36,962

15,959

8,022

1,722

814

599

1,275

1,058

544

572

1,438

7,937

850

408

811

1,724

3,453

200

491

1,243

1,396

1,771

6,195

3,032

7,366

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

1. These data differ somewhat in definition and coverage from the fixed capital formation

components of the gross national product. (See discussion in Chapter 5).

2. Includes fabricated metal products, lumber products, furniture and fixtures, instruments,

ordnance, and miscellaneous manufactures.

3. Includes apparel and related products, tobacco, leather and leather products, and print -

ng and publishing.

4. Includes trade, service, finance, and construction.

Sources: U. S. Department of Commerce, Office of Business Economics, and Securities and

Exchange Commission.

Table V-8.—Net Change in Business Inventories, 194&-57

[Millions of dollars]

Line

Net change in business inventories, total

Farm

Non farm

Net change in nonfarm inventories

C orporate

Noncorporate

Change in book value

Corporate

Noncorporate

Inventory valuation adjustment

Corporate

Noncorporate

Net change in nonfarm inventories by industrial group

Manufacturing

Change in book value

Inventory valuation adjustment

Wholesale trade

Change in book value

Inventory valuation adjustment

Retail trade

Change in book value

Inventory valuation adjustment

Allother

Change in book value

Inventory valuation adjustment

1946

6,379

29

6,350

6,350

5,967

383

13, 318

11,230

2,088

- 6 , 968

- 5 , 263

-1,705

6,350

2,901

6, 163

- 3 , 262

815

2,081

-1,266

2,048

4,094

- 2 , 046

586

980

-394

1947

-462

-1,760

1,298

1,298

1,240

58

8,668

7,139

1,529

- 7, 370

-5, 899

-1,471

1,298

450

4,412

-3, 962

-21

1,084

-1,105

603

2,249

-1,646

266

923

-657

1948

4,708

1,732

2,976

2,976

2,053

923

5,538

4,205

1,333

- 2, 562

-2,152

-410

2,976

1,271

2,749

-1,478

566

706

-140

1,229

1,777

-548

- 90

306

-396

1949

-3,072

-863

- 2, 209

-2,209

-1,721

-488

- 4, 528

-3, 577

-951

2,319

1,856

463

-2,209

-1,580

- 2, 743

1,163

4

-401

405

-358

-899

541

-275

-485

210

1950

6,815

815

6,000

6,000

4,823

1, 177

12, 059

9,788

2,271

- 6 , 059

- 4 , 965

-1,094

6,000

2,164

5,496

- 3 , 332

1,356

2,458

-1,102

2,131

3,351

-1,220

349

754

-405

10,233

1,176

9,057

9,057

8,552

505

10, 583

9,751

832

-1,526

- 1 , 199

-327

9,057

7,872

8,477

-605

308

604

-296

526

-487

838

976

-138

1952

3,067

921

2,146

2,146

2,231

- 85

964

1,250

1,182

981

201

2,146

1,863

1,185

678

323

1

322

- 36

-255

219

- 4

33

— 37

1953

-609

-489

-120

1954

-1,639

490

-2,129

-2,129

-1,927

-202

-1,762

-1,609

-153

-367

-318

- 49

-2,129

- 2 , 582

-2,260

-322

282

244

38

144

215

- 71

27

39

- 12

1955

5,783

297

5,486

5,486

4,927

559

7,420

6,663

757

-1,934

-1,736

-198

5,486

2,626

4,008

-1,382

1,115

1,195

- 80

2,092

2,294

-202

-347

- 77

-270

1956

5,446

-479

5,925

5,925

5, 805

120

8,982

8,365

617

- 3 , 057

- 2 , 560

-497

5,925

4,618

6,165

-1,547

504

1,131

-627

130

811

-681

673

875

-202

1957

953

758

195

195

152

43

2,040

1,700

340

- 1 , 845

- 1 , 548

-297

195

316

1,288

-972

-1,013

-621

-392

739

1,184

-445

153

189

- 36

Line

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
194 NATIONAL INCOME AND PRODUCT TABLES

Table V—9.—-Securities and Exchange Commission Estimates of Personal Saving and Its Disposition and Comparison With Office of Business

Economics Estimates of Personal Saving, 1946^57

[Billions of dollars)

Line

Gross investment in tangible assets

Nonfarm homes

Other construction and producers' durable equipmentNoncorporate enterprises

Farm enterprises

 1

Nonprofit institutions

Inventories of noncorporate enterprises

Nonfarm

Farm

Deprecia tion

 2

Nonfarm homes

Noncorporate nonfarm enterprises

Farm enterprises

 3

Nonprofit institutions

Net investment in tangible assets

Nonfarm homes . _ _ _

Other

Increase in financial assets

 4 5

Currency and bank deposits

Savings and loan association shares

Securities

U. S. savings bonds

 6

Other U. S. Government

State and local government

Corporate and other

Private insurance and pension reserves

Increase in debt to corporations and financial intermediaries

Consumer debt

Securities loans

Mortgage debt

On nonfarm homes

On noncorporate nonfarm enterprises

On farms

Net trade debt of noncorporate nonfarm enterprises

Non-real-estate farm debt

Bank debt not elsewhere classified

Personal saving, SEC [lines (15)+ (18)-(27)]

Personal saving, Commerce (from table II-l)

 7

Difference between lines (37) and (38)

Statistical discrepancy in the national income and product

accounts (from table 1-17)

Alternative estimate of personal saving, Commerce [lines

(38) + (40)].s

Difference between lines (37) and (41)

1946

11.49

4.42

6.66

4.34

1.86

.45

.41

.38

.03

5.04

1.84

1.76

1.23

.22

6.45

2.58

3.87

13.43

10.61

1.18

-2.08

1.22

-3.10

-.1 5

-.0 5

3.72

7.82

2.32

-2.34

4.40

3.63

.79

-.0 2

1.11

.45

1.87

12.06

13.46

-1.40

2.09

15.55

-3.49

1947

14.97

6.77

9.91

6.01

3.33

.57

-1.70

.06

-1.76

6.15

1.94

2.37

1.62

.23

8.82

4.83

3.99

9.43

2.07

1.20

2.21

2.09

-.8 5

.33

.65

3.95

11.30

2.81

-.7 6

5.43

4.51

.81

.11

1.25

.78

1.80

6.94

4.70

2.24

3.54

8.24

-1.30

1948

22.41

9.00

10. 76

5. 53

4.28

.95

2.66

.92

1.73

7.15

2.12

2.72

2.07

.24

15.26

6.88

8.38

6.94

-1.78

1.19

3.38

1.60

-.2 8

.98

1.08

4.15

11.17

2.41

.43

5.82

4.66

1.07

.08

1.84

.88

-.2 0

11.03

10.99

.05

-.8 5

10.14

.89

1949

18.36

8.23

11.49

5.76

4.52

1.21

-1.35

-.4 9

-.8 6

8.21

2.29

3.22

2.44

.26

10.15

5.94

4.21

6.91

-1.38

1.51

2.48

1.46

-.1 0

.41

.70

4.31

8.88

2.64

.32

5.35

4.13

1.03

.19

-.9 6

.28

1.25

8.19

8.50

-.3 1

.51

9.01

-.8 2

1950

27.73

12.70

13.04

6.96

4.65

1.44

1.99

1.18

.82

9.01

2.53

3.45

2.74

.29

18.72

10.17

8.55

11.06

3.74

1.54

.97

.25

-.4 6

.49

.69

4.82

19.65

3.64

.22

8.93

7.33

1.30

.30

2.42

.58

3.85

10.14

12.64

-2.50

-.7 3

11.91

-1.77

1951

26.29

11.61

12.99

6.48

4.99

1.53

1.68

.50

1.18

10.26

2.83

3.85

3.24

.33

16.03

8.78

7.25

14.06

6.00

2.07

.58

-.4 7

-1.00

.38

1.67

5.41

10.17

.99

-.3 0

8.38

6.60

1.48

.29

.35

.96

-.2 1

19.92

17.68

2.24

1.25

18.92

.99

1952

25.24

11.96

12.44

6.32

4.71

1.41

.84

-.0 8

.92

10.89

3.02

4.07

3.42

.39

14.34

8.94

5.40

20.05

7.14

3.05

3.47

.09

.35

.96

2.08

6.39

15.26

4.36

.60

7.90

6.52

1.02

.35

2.17

.30

-.0 8

19.14

18.94

.20

1.37

20.31

-1.18

1953

25.53

12.75

13.14

6.91

4.70

1.53

—. 36

.26

-.6 2

11.58

3.32

4.31

3.53

.43

13.94

9.44

4.50

18.85

4.93

3.64

3.41

.20

.06

1.83

1.32

6.88

11.71

3.65

.40

8.59

7.30

1.00

.29

-.4 7

-.3 7

-.0 9

21.09

19.82

1.26

1.28

21.11

-.0 2

1954

27.61

14.24

13.09

7.02

4.19

1.87

.29

-.2 0

.49

12.15

3.61

4.46

3.63

.45

15.47

10.63

4.84

17.40

5.41

4.45

.23

.60

-1.6 0

.66

.57

7.31

16.33

.96

.86

10.64

9.11

1.20

.34

1.56

.34

1.97

16.54

13.86

-2.32

.85

19.71

-3.18

1955

32.99

17.34

14.80

8.60

4.19

2.01

.86

.56

.30

12.81

3.92

4.68

3.74

.48

20.18

13.42

6.76

22.46

3.81

4.79

6.29

.26

1.62

1.68

2.73

7.57

24.49

6.09

.60

13.98

11.93

1.48

.57

-.1 8

.54

3.46

18.15

17.51

.64

.99

18.50

-.3 5

1956

30.67

16.22

14.80

8.86

3.83

2.12

-.3 6

.12

-.4 8

13.36

4.26

4.85

3.75

.49

17.31

11.96

5.35

22.90

4.87

4.83

5.16

-.0 9

1.54

1.44

2.27

8.05

20.72

3.14

-.7 5

12.42

10.38

1.53

.50

3.96

.23

1.72

19.50

21.05

-1.56

-.9 4

20.12

-.6 2

1957

30.58

15.17

14.60

8.10

4.07

2.44

.80

.04

.76

14.33

4.64

5.24

3.92

.52

16.24

10.53

5.71

24.29

5.65

4.80

6.02

-1.9 1

1.95

1.98

3.99

7.81

18.22

2.58

-.0 7

10.14

8.25

1.53

.36

3.52

.64

1.41

22.32

20.71

1.61

.72

21.43

.88

Line

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

27

29

30

31

32

33

34

35

37

38

39

40

41

1. Includes farm dwellings.

2. Includes accidental damage to fixed property.

3. Includes depreciation on farm property owned by nonfarm landlords. This item is

excluded from table VII-9, line 12, and included in line 12 of table VI-19. Also Includes

accidental damage to fixed property which is excluded from table VI-19.

4. Excludes changes in government insurance and pension reserves, and Armed Forces

leave bonds (both of which are ascribed to the government sector in the national income

accounts). Annual amounts, in billions of dollars, of changes in government insurance and

pension reserves are as follows: 1946, $3.55; 1947, $3.49; 1948, $3.57; 1949, $2.34; 1950, $1.09; 1951,

$4.24; 1952, $4.40; 1953, $3.24; 1954, $2.63; 1955, $3.09; 1956, $3.49; 1957, $3.09. Annual amounts,

in billions of dollars, of Armed Forces leave bonds are as follows: 1946, $0.60; 1947, $0.16; 1948,

-$0.30; 1949, -$0.12; 1950, -$0.10; 1951, -$0.15; and less than -$0.05 in each of the succeeding

years.

5. Includes changes in assets of noncorporate enterprises of the types specified.

6. Includes increase in redemption value of outstanding bonds.

7. Equals disposable personal income less personal consumption expenditures.

8. Equals gross investment less government surplus and less gross private saving other

than personal saving as given in table V—1.

Sources: Securities and Exchange Commission and U. S. Department of Commerce, Office

of Business Economics.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
SAVING AND INVESTMENT 195

Table V-10.—Sources and Uses of Corporate Funds9 1946-57 1

[Billions of dollarsl

Line

15

16

17

18

19

20

21

22

23

24

25

26

Sources, total.

Internal sources, total.

Retained profits 3__

Depreciation

External long-term sources, total.

Stocks...

Bonds

Other debt

Short-term sources, total

Bank loans.

Trade payables

Federal income tax liabilities..

Other

Uses, total.

Increase in physical assets, total.

Plant and equipment

Inventories (book value)

Increase in financial assets, total.

Receivables

ConsumerOther

Cash and U. S. Government securities..

Cash (including deposits)

U. S. Government securities

Other assets

Discrepancy (uses less sources).

1946

21.9

11.4

7.2

4.2

4.2

1.3

1.1

1.8

6.3

2.1

3.7

-1.6

2. 1

23.2

23.7

12.5

11.2

-.5

4.8

1.1

3.7

-4.7

1.1

-5.8

-.6

1.3

1947

32.4

16.6

11.4

5.2

6.3

1.4

3.0

1.9

9.5

1.4

4.5

2.1

1.5

32.7

24.1

17.0

7.1

8.6

7.6

1.4

6.2

1.0

2.2

-1.2

.0

.3

1948

29.1

18.8

12.6

6.2

7.2

1.2

4.7

1.3

3.1

.5

1.3

.9

.4

28.3

23.0

18.8

4.2

5.3

4.1

1.3

2.8

1.0

.3

.7

.2

Q

1949

15.5

14.9

7.8

7.1

4.3

1.6

3.3

- .6

-3.7

-1.7

- .3

-2.2

.5

16.5

12.7

16.3

-3.6

3.8

.6

1.5

- .9

3.2

1.2

2.0

.0

1.0

1950

44.2

20.8

13.0

7.8

4.2

1.7

2.0

.5

19.2

2.1

8.8

7.3

1.0

45.3

26.7

16.9

9.8

18.6

13.8

1.8

12.0

4.5

1.6

2.9

.3

1.1

1951

39.6

19.0

10.0

9.0

7.8

2.7

3.6

1.5

12.8

3.9

2.7

4.3

1.9

39.5

31.4

21.6

9.8

8.1

4.7

.8

3.9

2.8

1.9

.9

.6

-. 1

1952

30.8

17.8

7.4

10.4

9.4

3.0

4.9

1.5

3.6

1.6

2.7

-3.1

2.4

30.0

23.7

22.4

1.3

6.3

5.8

2.2

3.6

. 1

.8

- .7

.4

-.8

1953

30.4

19.7

7.9

11.8

7.6

2.3

4.8

. 5

3.1

- .1

.4

.6

2.2

28.6

25.7

23.9

1.8

2.9

1. 1

1.8

1 8

2

1 6

.0

-1.8

1954

22.2

19.8

6.3

13,5

6.4

2.1

3.8

.5

—4.0

-1.1

—.2

-3.1

.4

23.8

20.8

22.4

-1.6

3.0

2.2

.7

1.5

.0

2.3

-2.3

.8

1.6

1955

50.3

26.6

10.9

15.7

8.6

2.7

4.2

1.7

15.1

3.7

5.5

3.8

2.1

50.6

30.9

24.2

6.7

19.7

11.9

3.3

5.0

1.2

3.8

2.8

.3

956

44.2

27.9

10.2

17.7

11.1

3.0

4.8

3.3

5.2

1.9

2.7

-1.4

2.0

42.6

38.3

29.9

8.4

4.3

7.7

1.2

6.5

-4.3

.5

-4.8

.9

-1.6

1957

40.1

28.5

8.8

19.7

12.1

3.4

7.5

1.2

!6

-1.1

-1.9

1.9

38.2

34.4

32.7

1.7

3.8

3.3

.9

2.4

-1.8

-. 1

-1.7

2.3

-1.9

Line

9

10

11

12

13

15

16

17

19

20

21

22

23

24

25

26

1. "Sources and uses" information has not yet been developed within the framework

of the national income accounts; some items in this table, therefore, differ deflnitionally

and statistically from similar entries in the accounts.

2. Excludes banks and insurance companies.

3. Includes depletion.

Table V—11.-—Balance of Payments on Capital Account, 1946-57

fMillions of dollars]

Line

United States capital, net [outflow of funds (-)], total...

Private, net, total

Direct investments.

New issues

Redemptions

Other long-term, net

Short-term, net

Government, net, total

Long-term capital, outflow

Repayments

Short-term, net

Foreign capital, net [outflow of funds (—)], total

Direct and long-term portfolio investments other than

U. S. Government securities.

Transactions in U. S. long-term Government securities. _

Short-term liabilities to foreign banks and official

institutions reported by U. S. banks.

Other short-term liabilities

Gold sales [purchases (—)]

Foreign capital and gold, total

Errors and omissions, net

1946

-3,437

-413

-230

-85

308

-96

-310

- 3 , 024

-3,348

86

238

—980

\ -347

1

-633

-623

-1,603

195

1947

-7,956

-987

-749

-396

295

52

-189

-6,969

-7,150

294

-113

265

-98

363

-2,162

-1,897

936

1948

-1,930

-906

-721

-150

62

19

-116

-1,024

-1,555

443

88

352

-172

524

-1,530

-1,178

1,179

1949

-1,205

-553

-660

-118

103

-65

187

-652

-684

205

-173

72

119

-47

-164

-92

775

1950

-1,421

-1,265

-621

-254

301

-542

-149

-156

-414

295

-37

1,912

( 53

\

[ 941

918

1,743

3, 655

-30

1951

-1,224

-1,068

-528

-491

113

-59

-103

-156

-458

305

-3

578

182

-659

f 613

1 442

-53

525

470

1952

-1,578

-1,158

-850

-286

66

6

-94

-420

-847

429

\ 9

1,612

141

302

1,083

86

-379

1,233

505

1953

-587

-369

-721

-270

139

316

167

-218

-7L6

487

11

1,147

206

-82

1, 021

2

1,1«1

2, 308

296

1954

-1,526

-1,619

-664

-309

124

-135

-635

93

-306

507

-108

1,462

244

8

1,234

-24

298

1,760

167

1955

-1,521

-1,211

-779

-128

190

-303

-191

-310

-383

416

-343

1,454

346

529

702

-123

41

1,495

446

1956

-3,606

- 2 , 980

-1,839

-457

169

-319

-534

-626

-534

479

-571

1,844

542

-135

1,112

325

-306

1,538

692

1957

-4,174

-3,211

-2,072

-597

149

—383

-308

-963

-987

659

-635

634

361

-52

-21

346

-798

-164

876

Line

9

10

11

12

13

14

15

16

17

18

19

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Federal Reserve Bank of St. Louis
196 NATIONAL INCOME AND PRODUCT TABLES

Table V-12.—Private Purchases of Structures and Equipment for Manufacturing Establishments, 1929-40

Line

Structures and equipment

Structures

Equipment -..

Structures and equipment

Structures

Equipment

Structures and equipment

Structures

Equipment

1929 1930 1931 1932 1933 1934 1935 1936 1937 1938

Current-year cost (billions of dollars)

Constant cost (billions of 1954 dollars)

Implicit price indexes (1954=100)

1939

2.9

1.5

1.4

1.8

.8

1.0

1.0

. 3

• "

. 5

. 1

.4

.7

. 3

.4

.9

. 3

.6

1.0

. 3

.8

1.5

.4

1.0

2.1

.8

1.3

1.3

.4

.9

1.5

.4

1.1

6.6

3.8

2.7

4.5

2.4

2.1

2.7

1.2

1.5

1.4

.4

. 9

2.0

1.0

1.0

2.2

1.0

1.2

2.4

.8

1.6

3.5

1.3

2.2

4.7

2.1

2.6

2.8

1.0

1.8

3.3

1.2

2.1

44

51

41

34

49

39

30

46

38

27

44

35

27

43

40

32

46

42

33

47

42

34

47

45

39

51

46

38

51

46

37

51

1940

2.2

. 7

1.5

4.7

1.9

2.8

Table V-13.—Depreciation on Privately Owned Structures and Equipment in Manufacturing Establishments, 1929-40

Line

Structures and equipment.

Structures

E quipment

Structures and equipment

Structures

Equipment

Structures and equipment

Structures

Equipment

Structures and equipment

Structures

Equipment

1929 1930 1931 1932 1933 1934 1935 1936 1937 1938

Original cost (billions of dollars)

Constant cost (billions of 1954 dollars)

1939

1.

\.

4

5

0

1

1

.5

.5

.0

1.

i!

5

5

0

1

1

. 5

.5

.0

1.4

. 5

.9

1. 4

5

9

1. 4

5

9

1. 4

5

9

1. 4

5

9

1. 5

5

9

1.5

. 5

. 9

3.7

1.7

2.0

3.8

1.7

2.1

3.8

1.7

2.1

3.8

1.7

2.0

3.7

1.7

1.9

3.6

1.7

1.9

3.6

1.7

1.8

3.6

1.7

1.9

3.6

1.7

1.9

3.6

1.7

1.9

3.6

1.7

1.9

1.

1.

1.

17

37

08

I!

I.

08

20

02

l!

99

03

97

.92

.93

.92

.92

.94

91

1.

1.

02

09

97

1.

1.

02

10

98

1.

1.

04

15

98

1.13

1.27

1.05

1.

1.

1.

11

23

05

1.

1.

1.

09

18

04

1940

1.5

. 5

1.0

3.7

1.7

2.0

1.

1.

7

6

0

1.

1.

6

6

0

1.

1.

5

5

0

1.4

. 5

g

Current-year cost

1.3

.5

.8

1.4

.5

q

(billions of dollars)

1.4

.6

. 9

1.5

.6

.9

Ratio of current-year cost to original cost

1.

1.

6

7

0

1

1

.6

.7

.0

1.

1.

6

6

0

1.

1

7

7

0

1.13

1.24

1.07

Table V-14.—Net Formation of Piivately Owned Structure and Equipment Capital in Manufacturing Establishments, 1929-40

Line 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940

Structures and equipment

Structures

Equipment

Structures and equipment

Structures

Equipment

Current-year cost (billions of dollars)

1.2

.8

.4

. 2

.2

.0

- . 4

> 2

- . 3

- . 8

—. 3

- . 5

- . 6

—. 2

- . 4

- . 6

—. 2

- . 3

4

- . 3

- . 1

.0

—. 1

2

. 5

. 2

. 3

- . 3

- . 1

- . 1

- . 2

. 1

. 5

. 1

.4

Constant cost (billions of 1954 dollars)

2.9

2.2

.7

.7

. 7

.0

-1. 1

- . 6

- . 6

-2. 4

-1. 3

-1. 1

-1. 7

- . 7

-1. 0

-1. 4

- . 7

- . 7

-1. 1

- . 9

- . 2

- . 1

- . 4

. 3

1.1

.4

.7

- . 8

- . 7

- . 1

- . 4

- . 5

. 2

1.0

.2

.8

Table V-15.—Real Net Value of Privately Owned Structures, Equipment, and Inventories in Manufacturing Establishments, End of Year,

1928-39

[Billions of 1954 dollars]

Line

1

2

3

4

5

Structures, equipment, and inventories .

Structures and equipment --

Structures

Equipment

Inventories . -

1928

76.9

55.9

37.7

18.2

21.1

1929

81.1

58.7

39.8

18.9

22.4

1930

82.7

59.4

40.6

18.9

23.3

1931

79.9

58.3

40.0

18.3

21.6

1932

74.8

55.9

38.7

17.2

18.9

1933

71.5

54.2

38.0

16.2

17.2

1934

70.7

52.8

37 3

15.5

17.9

1935

70.1

51.7

36.4

15.3

18.5

1936

71.9

51.6

36.0

15.6

20.3

1937

76.2

52.7

36.4

16.3

23.5

1938

74.0

51.9

35.7

16.2

22.2

1939

74.2

51.5

35.2

16.3

22.8

Digitized for FRASER 

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SAVING AND INVESTMENT

Table V-12.—Private Purchases of Structures and Equipment for Manufacturing Establishments, 1941-57

197

1941

3.1

1.3

1.8

6.2

3.0

3.2

50

43

56

1942

2.0

.6

1.5

3.7

1. 1

2.6

55

50

57

1943

1.7

. 2

1.5

3.0

2.6

57

54

58

1944

2.2

. 3

1.9

3.9

.6

3.3

57

52

58

1945

3.6

1.0

2.5

6.2

1.9

4.3

57

56

58

1946

6.3

3.1

3.2

9.7

4.6

5.1

65

68

63

1947 1948 1949 1950 1951

Current-year cost (billions of dollars)

7.1

2 7

4.4

7.1

2.4

4.7

5.7

1.8

3.9

Constant cost (billiom

9.4

3.4

6.0

8.6

2.7

5.9

6.7

2. 1

4.7

6.3

1.6

4.6

8.3

2.6

5.6

i of 1954 dollars)

7.3

1.9

5.4

8.6

2.6

5.9

Implicit price indexes (1954== 100)

76

79

74

82

89

79

84

87

83

86

88

86

97

99

96

1952

8.4

2.6

5.9

8.7

2.6

6.1

97

101

96

1953

8.6

2.6

6.0

8.7

2.5

6. 2

99

103

98

1954

8.0

2.4

5.6

8.0

2.4

5.6

100

100

100

1955

8.6

3.0

5. 6

8.5

3.0

5.5

102

102

102

1956

11.2

3.5

7.8

10.2

3.1

7.1

110

112

109

1957

12.0

4.0

8.0

10.3

3.4

6.9

117

119

Do

Line

1

2

3

4

5

6

-

8

9

Table V-13.—Depreciation on Privately Owned Structures and Equipment in Manufacturing Establishments, 1941-57

1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 Line

Original cost (billions of dollars)

1.6

.6

1.0

1.7

.6

1.1

1.7

.6

1.1

1.8

.6

1.2

1.9

.6

1.3

2.0

.6

1.4

2.3

.7

1.6

2.7

.8

1.9

2.9

.8

2.1

3.2

.9

2.3

3.5

.9

2.6

3.9

1.0

2.9

4.2

1.0

3.2

4.5

1.1

3.5

4.9

1.1

3.7

5.2

1.2

4.1

5.7

1.3

4.4

1

2

3

Constant cost (billions of 1951 dollars)

3.8

1.8

2.0

1.9

.8

1.2

1.22

1.36

1. 14

3.9

1.8

2.1

2.1

.9

1.2

1.27

1.52

1.13

3.9

1.8

2.2

2.2

1.0

1.2

1.29

1.63

1.11

4.0

1.7

2.2

2.2

.9

1.3

1.26

1.55

1.11

4.1

1.7

2.4

2.4

1.0

1.4

1.27

1.62

1.10

4.4

1.8

2.6

2.8

1.2

1.6

1.38

1.87

1.15

4.7

1.9

2.8

5.0

1.9

3.1

5.3

1.9

3.4

5.5

1.9

3.5

5.7

2.0

3.7

Current-year cost (billions of dollars)

3.6

1.5

2.1

4.2

1.7

2.5

4.5

1.7

2.8

4.8

1.7

3.0

5.5

1.9

3.6

Ratio of current-year cost to original cost

1.54

2.06

1.30

1.58

2. 18

1.33

1.52

2.05

1.32

1.49

1.99

1.31

1.58

2.14

1.38

5.9

2.0

4.0

5.8

2.0

3.8

1.50

2.08

1.31

6.1

2.0

4.1

6.1

2.0

4.0

1.44

2.01

1.27

6.4

2.0

4.4

6.4

2.0

4.4

1.41

1.87

1.27

6.6

2.0

4.6

6.7

2.1

4.6

1.38

1.84

1.25

6.8

2.1

4.8

7.5

2.3

5.2

1.42

1.92

1.28

7.1

2.1

5.0

8.2

2.5

5.8

1.44

1.95

1.31

4

5

6

7

8

9

10

11

12

Table V-14.—Net Formation of Privately Owned Structure and Equipment Capital in Manufacturing Establishments, 1941-57

1941 1942 1948 1949 1950 1953 1954 1955 1956 1957 Line

Current-year cost (billions of dollars)

1.2

.5

.6

- . 5

—# 7

.Z

.0

- . 6

.6

1.2

. 1

1.1

3.5

1.9

1.6

3.5

1.2

2.3

2.9

.7

2.2

1.2

.1

1.1

1.5

- . 1

1.6

2.7

2. 1

2.6

, 6

2.0

2.6

.6

2.0

1.

L

6

4

2

1.

1.

9

0

9

3.

1.

2.

8

2

6

3.

1.

2.

7

5

2

Constant cost (billions of 1954 dollars)

- . 9

1.3

.4

_ >

-1. '

1.

!

1

0

2.1

.1

1.9

5.3

2.8

2.5

4.

1.

3.

7

5

2

3.6

.8

2.8

1.

I!

5

2

3

1.

—

1.

8

1

9

2.9

.7

2.2

2.7

.6

2.1

2.6

. 5

2.0

1.6

.4

1.2

1.9

1.0

.9

3.4

1.0

2.3

3.

1.

1.

2

3

9

Table V—15.—Real Net Value of Privately Owned Structures, Equipment, and Inventories in Manufacturing Establishments, End of Year,

1940-57

[Billions of 1954 dollars]

1940 Line

77.4

52.4

35.3

17.1

25.0

1941

84.1

54.8

36.6

18.2

29.3

1942

86.3

54.6

35.9

18.7

31.7

1943

86.1

53.7

34.6

19.1

32.4

1944

85.0

53.6

33.5

20.1

31.4

1945

85.0

55.7

33.6

22.1

29.3

1946

94.5

61.0

36.4

24.6

33.6

1947

99.3

65.6

37.9

27.8

33.7

1948

104.0

69.2

38.7

30.5

34.8

1949

103.7

70.7

38.9

31.8

33.0

1950

107.9

72.5

38.8

33.7

35.4

1951

117.1

75.3

39.5

35.9

41.8

1952

122.1

78.0

40.0

38.0

44.1

1953

126.7

80.6

40.6

40.1

46.0

1954

125.9

82.2

41.0

41.3

43.7

1955

129.4

84.1

41.9

42.2

45.3

1956

136.8

87.5

43.0

44.5

49.3

1957

140.2

90.7

44.3

46.4

49.6

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Digitized for FRASER 

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VI. Income and Employment by Industry"

PAGE

VI-1. Compensation of Employees, by Industry, 1946-57 (14) 200

VI-2. Wages and Salaries, by Industry, 1946-57 (15) 201

VI-3. Supplements to Wages and Salaries, by Industry Division, 1946-57 (16) 202

VI-4. Income of Unincorporated Enterprises, by Industry Division, 1946-57 (17) 202

VI-5. Corporate Profits Before Tax, by Industry, 1946-57 (18) 203

VI-6. Federal and State Corporate Profits Tax Liability, by Industry, 1946-57

(19) 204

VI-7. Corporate Profits After Tax, by Industry, 1946-57 (20) 205

VI-8. Net Corporate Dividend Payments, by Industry, 1946-57 (21) 206

VI-9. Undistributed Corporate Profits, by Industry, 1946-57 (22) 207

VI-10. Corporate Profits (Before Tax) and Inventory Valuation Adjustment, by

Broad Industry Groups, Seasonally Adjusted Quarterly Totals at Annual

Rates, 1946-57 208

VI-11. Inventory Valuation Adjustment, by Industry Division, 1946-57 (23) 210

VI-12. Net Interest, by Industry Division, 1946-57 (24) 210

VI-13. Number of Full-Time Equivalent Employees, by Industry, 1946-57 (25) 211

VI-14. Average Number of Full-Time and Part-Time Employees, by Industry,

1946-57 (26) 212

VI-15. Average Annual Earnings per Full-Time Employee, by Industry, 1946-57

(27) 213

VI-16. Number of Persons Engaged in Production, by Industry, 1946-57 (28) 214

VI-17. Corporate Sales, by Industry, 1946-57 (29) 215

VI-18. Corporate Depreciation Charges, by Industry, 1946-57 216

VI-19. Noncorporate Depreciation Charges, by Industry Division, 1946-57 217

*Figures in parentheses refer to corresponding tables in the 1954 National Income supplement.

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Federal Reserve Bank of St. Louis
200 NATIONAL INCOME AND PRODUCT TABLES

Table VI—1.—Compensation of Employees, by Industry, 1946-57 l

[Millions of dollars]

1946 1947 1948 1950 1951 1953 1954 1955 1956 1957

All industries, total..

Agriculture, forestry, and fisheries..

Farms .

Agricultural services, forestry, and fisheries..

Mining

Metal mining

Anthracite mining

Bituminous and other soft coal mining..

Crude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction..

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill products

Apparel and other finished fabric products

Lumber and furniture products

 2

Lumber and wood products, except furniture

Furniture and fixtures

Lumber and timber basic products

Furniture and finished lumber products

Paper and allied products

Printing, publishing, and allied industries

Chemicals and allied products

 2

Products of petroleum and coal 2

Rubber products

Leather and leather products

Stone, clay, and glass products

Metals, metal products, and miscellaneous

 2

Primary metal industries

Fabricated metal products, including ordnance

Instruments

Miscellaneous manufacturing

Iron and steel and their products, including ordnance.

Nonferrous metals and their products

Miscellaneous manufacturing

Machinery, except electrical2

Electrical machinery

 2

Transportation equipment, except automobiles

Automobiles and automobile equipment

Wholesale and retail trade

Wholesale trade

Retail trade and automobile services

Finance, insurance, and real estate

Banking

Security and commodity brokers, dealers and exchanges

Finance, n. e. c

Insurance carriers

Insurance agents and combination offices

Real estate

117,697

2,801

2,563

238

2,470

212

248

1,111

651

218

4,621

38,178

3,750

197

2,803

2,555

2,192

1,090

1,102

1,187

1,981

2.072

822

778

905

1,180

7,477

Transportation

Railroads

Local and highway passenger transportation

Local railways and buslines

Highway passenger transportation, n. e. c

Highway freight transportation and warehousing..

Water transportation

Air transportation (common carriers)

Pipeline transportation

Services allied to transportation

Communications and public utilities

Telephone, telegraph, and related services..

Radio broadcasting and television

Utilities: electric and gas

Local utilities and public services, n. e. c.,.

Services

Hotels and other lodging places

Personal services

Private households

Commercial and trade schools and employment agencies

Business services, n. e. c

Miscellaneous repair services and hand trades

Motion pictures

Amusement and recreation, except motion pictures

Medical and othei health services

Legal services

Engineering and other professional services, n. e. c

Educational services, n. e. c

Nonprofit membership organizations, n. e. c

Government and government enterprises

Federal—general government

Federal—government enterprises

State and local—general government

State and local—government enterprises

Rest of the world

Addendum: All private industries

4,704

1,412

1,361

4,142

2,352

1,846

1,939

20,195

6,901

13,294

4,307

1,086

286

314

1,296

430

895

9,016

5,144

1,125

571

554

1,255

701

246

93

452

3,067

1,615

147

1,259

46

10,433

849

1,632

2,123

69

961

308

702

523

1,134

184

275

578

1,095

22,592

14, 545

1,448

6,177

422

17

95,088

128,757

3,097

2,829

268

3,070

309

262

1,463

775

261

6,108

44,537

4,2^2

207

3,219

2,744

2,767

1,395

1,372

1,408

2,344

2,394

991

866

978

1,402

8,923

5,942

1,491

1,490

5,041

2,859

1,674

2,438

23,622

8,248

15, 374

4,722

1,227

237

361

1,481

467

949

9,664

5,446

1,195

605

590

1,459

636

286

111

531

3,563

1,816

173

1,522

52

11,738

912

1,750

2,350

92

,104

358

718

565

1,410

209

334

727

1,209

18,619

9,343

1,440

7,320

516

17

110,121

1,

140,969

3,353

3,045

30S

3,543

353

293

1, 652

953

292

7,437

48,604

4, 560

215

3, 663

2,993

2, 950

1,948

1,002

1, 572

2,607

2, 503

1,154

844

1,010

1, 593

10,034

4,393

3, 473

828

1, 340

5,499

2, 949

1,771

2,687

26,053

9,159

16, 894

5,295

1, 350

246

413

1,672

526

1,088

10,294

5,823

1,174

553

621

1,670

665

309

132

521

4,119

2,096

206

1,760

57

12,574

955-

1,822

2,363

110

1,258

369

681

618

1, 578'

228

408

855

1, 329

19,681

8,895

1,627

8, 502

657

16

121,272

140,834

3,184

2,877

307

3,127

339

238

1,277

975

298

7,274

46,124

4.629

226

3,278

2, 891

2,680

1,724

956

154,190

3,013

2,689

324

3,440

368

254

1, 465

1,023

330

8,348

52,535

4,908

236

3,744

3,118

3,229

2,060

1,169

180,327

3,183

2,812

371

3,914

448

260

1,619

1,198

389

10,369

62,418

5,426

271

3,882

3, 262

3, 605

2,372

1,233

195,012

3,223

2,815

3,969

498

248

1,434

1,369

420

11,263

67,391

5,689

286

3.756

3.399

3, 682

2,371

1, 311

208,812

3,236

2,805

431

4,081

556

209

1,409

1,454

453

11,802

74,809

(3,035

301

3,783

3,616

3,748

2,361

1,387

207,595

3,182

2,726

456

3,744

502

166

1,092

1,526

458

12,019

71,089

b, 178

313

3,410

3,508

3,564

2,242

1,322

223,852

3,234

2,749

485

4,058

564

140

1,204

1,647

503

12,932

77,979

6,477

322

3, 626

3,730

4,002

2,511

1,491

241,799

3,348

2,806

542

1,529

638

147

1,376

1,799

569

14,299

83,943

6,890

335

3,691

3,964

4,174

2,591

1,583

1,541

2, 752

2,505

1,186

778

971

1, 530

9,187

3,931

3,210

794

1,252

1, 780

2.92H

2,752

1,214

918

1,047

1, 765

11,055

4,864

3,827

931

1,433

2,045

3,167

3,322

1, 453

1,090

1,062

2,108

13,464

6,002

4,700

1,193

1,569

2,128

3,390

3,588

1,578

1,181

1,146

2,098

14,446

6,060

5,396

1,364

1,626

2,363

3,678

4,000

1,722

1,2S8

1,183

2,303

16, 636

6,895

6,338

1,541

1,862

4,781

2,678

1,726

2,785

26,434

9,131

17, 303

5,554

1,432

240

457

1,813

560

1,052

9,875

5,387

1,166

561

605

1,758

599

325

130

510

4,376

2,188

227

1,902

59

12,951

960

1,833

2,356

125

1,284

357

684

630

1,704

242

410

933

1,433

21,919

9,966

1,806

9,422

725

16

118,899

5,379

3,177

1, 753

3, 532

28,330

9,869

18, 461

6,159

1, 545

312

498

1,994

639

1,171

10,420

5, 586

1,148

548

600

2,083

589

349

124

541

4,619

2,239

258

2,060

62

13,818

980

1,887

2,572

139

1,403

367

681

642

1, 903

265

437

996

1,546

23,490

10, 690

1, 897

10,124

779

18

130,682

7,264

4,049

2,982

3,966

31,226

11,216

20,010

6,757

1,730

338

574

2,179

701

1, 235

11,969

6, 415

1,211

568

643

2,405

712

409

143

674

5,109

2,465

298

2,278

15,141

1,052

2,014

2,661

138

1,599

472

705

673

2,134

294

608

1,077

1,714

30,221

16,193

2,081

11,069

878

20

150,086

8,037

4,676

4,2h6

4,045

32,994

11,899

21, 095

7,344

1,930

336

671

2,401

747

1,259

12,513

6,465

1,244

575

669

2,657

779

501

158

709

5,607

2,727

332

2,471

77

16,217

1,118

2,108

2,614

131

1,800

535

717

706

2,359

325

788

1,150

1,866

34,466

18, 837

2,379

12,174

1,076

25

160,521

5,465

5,077

5,005

35,087

12, 692

22, 395

7,991

2,122

345

736

2,655

S18

1,315

13,076

6,476

1,264

582

682

3,011

865

562

161

737

6,132

2,990

375

2,686

81

17,302

1,178

2,208

2,690

125

2,009

560

704

758

2,603

358

864

1,234

2,011

35,276

18, 509

2,367

13, 246

1,154

20

173,516

2,443

3,855

4,140

1, 730

1,173

1,142

2,278

15,155

6,062

5, 760

1,513

1,820

2,664

4,113

4,420

1,770

1,395

1,237

2,569

17,160

7,366

6,224

1,609

1,961

2,893

4,426

4,885

1,879

1,424

1,292

2,782

18,481

7,988

6,560

1,803

2,130

7,843

5,023

4,924

4,410

36,085

13,171

22, 914

8,720

2,286

442

831

2,842

887

1,432

12,466

5,925

1,223

570

653

3, 073

780

588

157

720

6,455

3,109

425

2,837

84

17,957

1,205

2,271

2, 520

131

2,150

553

739

805

2,840

386

.880

1,329

2,148

35,856

17, 683

2,352

14, 620

1,201

22

171,717

8,413

5,506

5,103

5,472

38,623

14,138

24, 485

9,535

2,460

540

947

3,041

953

1,594

13,246

6,108

1,209

542

667

3,487

835

667

157

783

6,853

3,322

459

2,983

19,605

1,254

2,369

2,942

146

2,398

614

790

868

3,092

421

1,008

1,444

2, 259

37,766

18, 240

2,521

15, 727

1,278

21

186,065

9,707

6,184

5,935

5,001

41,656

15, 658

25, 998

10,403

2,702

550

1,076

3,314

1, 050

1,711

14,315

6,583

1,216

531

685

3,822

881

786

165

862

7,435

3,634

507

3,197

97

21,581

1,315

2,528

3,188

169

2,799

704

802

923

3,351

459

1,298

1,612

2,433

40,269

18,841

2,667

17, 439

1,322

21

201,509

254,637

3,445

2,887

558

4,683

661

146

1,409

1,889

578

14,719

87,671

7,101

343

3,587

4,029

3,979

2,355

1,624

3.020

4,679

5,267

2,043

1,497

1,318

2,859

19,461

8,383

6,954

1,941

2,183

10,033

6,664

6,687

5,104

44,010

16, 621

27, 389

11,153

2,946

556

1,190

3,652

1,115

1,694

14,985

6,634

1,255

530

725

4,055

991

918

179

953

7,916

3,862

539

3,415

100

23,166

1,394

2,651

3,286

185

3,157

779

795

983

3,623

495

1,431

1,790

2,597

42,869

19,427

2,830

19,197

1,415

20

211,748

n. e. c— Not elsewhere classified.

1. Compensation of employees is the sum of wages and salaries (table VI-2) and supplements to wages and salaries (table VI-3). Footnotes to table VI-2 are therefore relevant to

this table also.

2. See footnote 1 to table VI-2. Estimates of 1948 employee compensation comparable

to those shown for 1947 are as follows: Lumber and furniture products, $3,043 million; Chemicals and allied products, $2,602 million; Products of petroleum and coal, $1,125 million; Metals,

metal products, and miscellaneous, $9,733 million; Machinery, except electrical, $5,600 million; and Electrical machinery, $2,996 million.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
INCOME AND EMPLOYMENT BY INDUSTRY 201

Table VI-2.—Wages and Salaries, by Industry, 1946-57

[Millions of dollars]

All industries, total

Agriculture, forestry, and fisheries _

Farms

Agricultural services, forestry, and fisheries

Mining

Metal m ining

Anthracite mining

Bituminous and other soft coal mining

Crude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill products

Apparel and other finished fabric products

Lumber and furniture products

 1

Lumber and wood products, except furniture

Furniture and fixtures

Lumber and timber basic products

Furniture and finished lumber products

Paper and allied products

Printing, publishing, and allied industries

Chemicals and allied products 1

Products of petroleum and coall

Rubber products _

Leather and leather products

Stone, clay, and glass products

Metals, metal products, and miscellaneous *

Primary metal industries

Fabricated metal products, including ordnance

Instruments

Miscellaneous manufacturing

Iron and steel and their products, including ordnance _

Nonferrous metals and their products

Miscellaneous manufacturing

Machinery, except electrical 1

Electrical machinery 1

Transportation equipment, except automobiles

Automibiles and automobile equipment

Wholesale and retail trade

Wholesale trade

Retail trade and automobile services

Finance, insurance, and real estate

Banking

Security and commodity brokers, dealers and exchanges.

Finance, n. e. c

Insurance carriers

Insurance agents and combination offices

Real estate

Transpor ta tion

Railroads

Local and highway passenger transportation

Local railways and buslines.--

Highway passenger transportation, n. e. c

Highway freight transportation and warehousing

Water transportation

A ir transportation (common carriers)

Pipeline transportation

Services allied to transportation

Communications and public utilities

Telephone, telegraph, and related services

Radio broadcasting and television

Utilities: electric and gas

Local utilities and public services, n. e. c

Services

Hotels and other lodging places

Personal services

Private households

Commercial and trade schools and employment agencies.

Business services, n. e. c

Miscellaneous repair services and hand trades

Motion pictures

Amusement and recreation, except motion pictures

Medical and other health services

Legal services

Engineering and other professional services, n. e. c

Educational services, n. e. c

Nonprofit membership organizations, n. e. c

Government and government enterprises

Federal—general government

Civilian, except work relief2

Military 3

Work relief

Federal—government enterprises

State and local—general government

Public education

Nonschool, except work relief

Work relief

State and local—government enterprises

Rest of the world*

Addendum: All private industries

1946

111,836

2,787

2, 553

234

2,368

232

237

1,065

623

211

4,412

36,476

3,578

185

2,700

2,448

2, 111

1,048

1,063

1,138

1,912

1,949

697

749

876

1,128

7,164

4,502

1,353

1,309

3,987

2,215

1,762

1,877

19,560

6,691

12.869

4,097

991

277

302

1,261

418

848

8,509

4,778

1,081

554

527

1,211

683

232

88

436

2,824

1,479

143

1,157

45

10,208

822

1,589

2,120

63

927

296

679

509

1,125

181

269

564

1,064

20,578

12, 858

5,040

7,818

1,391

5,912

2,584

3,328

417

17

91,241

1947

122,858

3,082

2,819

263

2,920

297

250

1,378

742

253

5,834

42,500

4,083

195

3,103

2, 625

2, 668

1,346

1,322

1,347

2,263

2,255

823

833

939

1,344

8,564

5,706

1,431

1,427

4,821

2,672

1,611

2,354

22,871

7,999

14. 872

4,502

1, 124

231

348

1,445

453

901

9,022

4,962

1,150

587

563

1,412

611

271

105

511

3,286

1,661

167

1,407

51

11,495

887

1,707

2,348

90

1,061

345

694

551

1,397

205

325

712

1,173

17,329

8,420

4,353

4,067

1,384

7,015

3,084

3,931

510

17

105,512

1948

135,214

3,337

3,034

303

3,340

336

277

1,529

914

284

7,121

46,459

4,359

202

3,530

2,869

2,848

1,879

969

1,502

2,523

2,352

985

813

973

1,530

9,640

4,224

3,341

786

1,289

5,291

2,759

1,693

2,590

25,298

8,907

16. 391

5,031

1,237

238

389

1,623

509

1,035

9,730

5,428

1,130

538

592

1,617

637

293

123

502

3,809

1,924

199

1,631

55

12,318

928

1,778

2,361

107

1,213

356

655

602

1,565

224

397

839

1,293

18,755

8,415

4, 445

3,970

1,563

8,127

3,599

4,528

650

16

116,443

1949

134,310

3,167

2,865

302

2, 931

323

223

1,166

929

290

6,956

43,860

4,414

211

3, 151

2,759

2, 585

1, 663

922

1,464

2,657

2,332

985

749

933

1, 465

8,757

3,744

3, 065

747

1,201

4,579

2,488

1,650

2,681

25, P29

8,870

16,759

5,251

1, 304

232

425

1,756

540

994

9,305

5,000

1,117

544

573

1,698

574

306

121

489

4,036

2,000

219

1,759

58

12,674

932

1.786

2,353

120

1,231

343

658

614

1,688

238

401

915

1,395

20,485

9,048

4,800

4,248

1,734

3,983

5, 004

716

16

113,809

1950

1,

146,391

2,994

2,678

316

3,158

346

233

291

969

319

7,950

49,393

4, 654

219

3, 569

2, 952

3,100

1,977

1, 123

1,684

2,816

2,551

1,027

868

1,000

1.678

10, 298

4,444

3,617

872

1,365

5,114

2, 945

1,670

3,248

27,322

9,534

17,788

5,806

1,403

300

475

1.914

612

1.102

9,801

5,192

1,096

530

566

2,001

556

323

116

517

4,214

2.023

249

1,882

60

13,483

946

1.829

2, 569

133

1, 338

351

653

623

1,885

259

427

972

1.498

22,252

10, 072

5,073

4,999

1,812

9,600

4,292

5,308

768

18

124,121

170,788

3,153

2,789

364

3,588

418

237

1,425

1,134

374

9,867

58,277

5, 122

251

3, 687

3,075

3, 453

2, 276

1,177

1,919

3, 034

3,049

1, 162

1, 013

1,012

1,988

12, 498

5, 488

4,408

1,113

1,489

6,856

3,722

2,840

3,596

30,085

10,814

19,271

6,353

1.558

325

539

2,100

675

1,156

11,251

5,967

1,149

547

602

2,309

669

377

131

649

4,647

2,227

291

2,064

65

14,707

1,012

1,949

2,648

135

1,524

452

673

653

2.102

288

587

1,041

1,643

28,840

15, 490

6,806

8,684

2,001

10,483

4,740

5,743

866

20

141,928

184,835

3,191

2,791

400

3,647

468

224

1, 256

1,294

405

10,749

62, 960

5,372

267

3,570

3,201

3,528

2,277

1,251

1, 9f9

3,251

3,300

1,243

1, 102

1,093

1,976

13, 421

5, 517

5,086

1,273

1,545

7,579

4,304

4,072

?, 6S2

31,820

11,496

20, 324

6,863

1,716

323

621

2,307

719

1,177

11,761

6,000

1,182

552

630

2,557

731

462

146

683

5,114

2,471

325

2,244

74

15,765

1,077

2,046

2,601

128

1, 723

513

688

688

2,321

319

755

1,112

1,794

32,940

18,108

7,636

10, 472

2,294

11,480

5,244

6,236

1,058

25

151,870

1953

198,030

3,201

2, 780

421

3,735

523

183

1,212

1, 380

437

11,260

69,881

5, 704

279

3,595

3,399

3,597

2,271

1,326

2,217

3,525

3,679

1,327

1,195

1,131

2,161

15, 508

6,305

5, 994

1, 438

1,77L

8,118

5, 044

4, 841

4, 561

33,895

12. 285

21.610

7,473

1,872

331

690

2, 563

788

1, 229

12,29(1

6,009

1,202

55CJ

648

2, 902

80S

51£

14€

711

5,606

2,716

367

2,444

79

16,810

1,135

2. 143

2,677

122

1,921

538

677

737

2,557

352

833

1,190

1,928

33,853

17,923

7,586

10,337

2,309

12,494

5,739

6,755

1,127

20

164,157

1954

196,259

3,143

444

3,410

466

142

922

1,439

441

11,432

66,077

5,811

288

3,222

3,286

3,404

2,147

1,257

2,284

3,691

3,761

1,318

1,094

1,089

2,126

14, 038

5, 482

5,427

1,403

1,726

7,368

4,644

4,673

3,980

34,747

12, 708

22, 039

8,099

1,996

422

769

2,735

851

1,326

11,694

5,481

1,160

546

614

2,953

721

542

145

692

5,883

2,822

417

2,564

80

17,382

1,154

2,197

2,501

128

2,050

528

709

780

2,780

377

847

1,274

2,057

34,370

17,179

7,228

9,951

2,327

13,701

6,361

7,340

1,163

22

161,867

1955

210,902

3,177

2,707

470

3,676

521

120

1,001

1,554

480

12,285

72,252

6,074

296

3, 423

3,477

3,814

2,399

1,415

2,489

3,923

4,023

1,376

1,298

1,175

2,387

15, 837

6, 661

5,840

1,484

1,852

7,875

5,076

4,803

4,906

37,124

13, 603

23, 521

8,801

2,136

519

872

2,885

915

1,474

12,392

5,627

1,148

523

625

3,341

763

611

146

756

6,250

3,032

450

2,683

85

18,970

1,200

2,292

2,918

143

2,284

586

758

841

3,025

410

968

1,383

2.162

35,954

17, 503

7,725

9,778

2,459

14, 759

7,850

1,233

21

174,927

1956

227,304

3,289

2,762

527

4,107

590

125

1,152

1,698

542

13,572

77,697

6,460

309

3,486

3,692

3,975

2,472

1,503

2,701

4,220

4,444

1,459

1,320

1,228

2,581

17, 026

7,202

6,148

1,665

2,011

9,076

5,697

5,581

4,442

40,001

15,058

24, 943

9,598

2,346

529

990

3,144

1,007

1,582

13,349

6,020

1,151

512

639

3,662

809

718

155

834

6,784

3,321

496

2,875

92

20,861

1,258

2,440

3,163

165

2,665

673

770

893

3,276

448

1,246

1,542

2,322

38,025

17,865

8,197

2,544

16, 343

7,734

8,609

1,273

21

189,258

1957

238,120

3,379

2,838

541

4,237

606

126

1,182

1,774

549

13,934

80,630

6,623

314

3,373

3,734

3,776

2,240

1,536

2,804

4,444

4,753

1,552

1,379

1,249

2,638

17, 809

7,484

6,492

1,781

2,052

9,329

6,105

6,266

4,482

42,133

15,935

26,198

10,227

2,530

533

1,088

3, 451

1,067

1,558

13,939

6,057

1,182

509

673

3,877

902

834

167

920

7,186

3, 522

527

3,043

94

22,336

1,329

2,554

3, 257

181

2,993

744

762

949

3,535

481

1,370

1,707

2,474

40,099

18, 089

8,455

9,634

2,655

17, 993

8,728

9, 265

1,362

20

198,001

Line

n. e. c—Not elsewhere classified.

1. Owing to changes in the industrial classification of the underlying data, figures for 1948

and subsequent years in this and a number of other industries are not strictly comparable with

those shown here for 1946 and 1947 or with the figures for earlier years in the 1954 National Income supplement. Estimates of 1948 wages and salaries comparable to those shown for 1947

are as follows: Lumber and furniture products, $2,942 million; Chemicals and allied products,

$2,450 million; Products of petroleum and coal, $957 million; Metals, metal products, and miscellaneous, $9,343 million; Machinery, except electrical, $5,359 million; and Electrical machinery, $2,804 million.

2. Includes pay of United States citizens but not of foreigners employed abroad by the

United States Government.

3. The pay of personnel stationed abroad is included, but that of personnel recruited from

the territories is excluded.

4. Pay of permanent United States residents employed in the United States by foreign

governments and international organizations.

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202 NATIONAL INCOME AND PRODUCT TABLES

Table VI—3.—Supplements to Wages and Salaries, by Industry Division, 1946~57

[Millions of dollars]

Line

All industries, total

Agriculture, forestry, and fisheries

Mining

Contract construction

Manufacturing

Wholesale and retail trade

Finance, insurance, and real estate

Transportation

Communications and public utilities

Services

Government and government enterprises

Addendum: All private industries

1946

5,861

14

102

209

1,702

635

210

507

243

225

2,014

3,847

1947

5,899

15

150

274

2,037

751

220

642

277

243

1,290

4,609

1948

5,755

16

203

316

2,145

755

264

564

310

256

926

4,829

1949

6,524

17

196

318

2,264

805

303

570

340

277

1,434

5,090

1950

7,799

19

282

398

3,142

1,008

353

619

405

335

1,238

6,561

1951

9,539

30

326

502

4,141

1,141

404

718

462

434

1,381

8,158

1952

10,177

32

322

514

4,431

1,174

481

752

493

452

1,526

8,651

1953

10,782

35

346

542

4,928

1,192

518

780

526

492

1,423

9,359

1954

11,336

39

334

587

5,012

1,338

621

772

572

575

1,486

9,850

1955

12,950

57

382

647

5,727

1,499

734

854

603

635

1,812

11,138

1956

14,495

59

422

727

6,246

1,655

805

966

651

720

2,244

12, 251

1957

16,517

66

446

785

7,041

1,877

926

1,046

730

830

2,770

13, 747

10

11

12

Table VI-4.—Income of Unincorporated Enterprises, by Industry Division, 1946-57 1

[Millions of dollars]

Line

10

All industries, total

Agriculture, forestry, and fisheries

Mining.

Contract construction

Manufacturing

Wholesale and retail trade

Finance, insurance, and real estate

Transportation

Communications and public utilities..

Services

1946

38,278

15, 423

143

1,720

2,279

12,070

818

486

24

5,315

1947

36,963

15, 737

244

2,119

1,626

10,437

720

553

26

5,501

1948

40,604

18,029

347

2,646

1,425

10, 381

991

594

26

6,165

1949

35,120

13,186

237

2,637

1,220

9,431

1,553

593

25

6,238

1950

38,635

14, 273

235

3,071

1,685

10,439

1,573

650

34

6,675

1951

42,656

16, 625

233

3,292

1,784

11, 256

1,724

689

41

7,012

1952

42,032

15, 653

192

3,518

1,686

11,016

1,741

721

51

7,454

1953

40,891

13, 595

206

3,586

1,720

11,027

1,958

750

56

7,993

1954

40,491

13,030

195

3,549

1,537

11,019

2,212

757

64

8,128

1955

42,347

12,129

261

4,034

1,626

11, 645

2,455

754

62

9,381

1956

42,932

12,020

300

4,273

1,594

11,803

2,247

767

54

9,874

1957 Line

43,298

11,987

320

4,500

1,397

11,584

2,310

768

55

10,377

1. "Income of unincorporated enterprises" excludes the inventory valuation adjustment which is shown by industry division in table VI-11. The sum of the two items equals "proprietors

income."

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INCOME AND EMPLOYMENT BY INDUSTRY 203

Table VI-5.—Corporate Profits Before Tax, by Industry, 1946-57

[Millions of dollars]

All industries, total

Agriculture, forestry, and fisheries

Farms

Agricultural services, forestry, and fisheriesMining

Metal mining

Anthracite mining

Bituminous and other soft coal mining..

Crude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction.

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill products

Apparel and other finished fabric products.

Lumber and furniture products

 2

Lu mber and wood products, except furniture.

Furni ture and fixtures

Lumb er and timber basic products

Furniture and finished lumber products

Paper -a-nd allied products .

Printin g, publishing, and allied industries

Chem icals and allied products

 2

Products of petroleum and coal2

Rubber products

Leather and leather products

Stone, clay, and glass products -

Metals, metal products, and miscellaneous

 J

Primary metal industries

Fabricated metal products, including ordnance

Instruments

Miscellaneous manufacturing

Ironandsteelandtheirproducts,including ordnance.

Nonferrous metals and their products

Miscellaneous manufacturing

Machinery, excent electrical *

Electrical machinery

 2

Transportation equipment, except automobilesAutomobiles and automobile equipment

Wholesale and retail trade

Wholesale trade

Retail trade and automobile servicesFinance, insurance, and real estate

Banking

Security and commodity brokers, dealers and exchanges.

Finance, n. e. c

Insurance carriers.

Insurance agents and combination offices

Real estate

Transportation

Railroads

Local and highway passenger transportation

Highway freight transportation and warehousing.

Water transportation

Air transportation (common carriers).

Pipeline transportation

Services allied to transportation

Communications and public utilities

Telephone, telegraph, and related services.

Radio broadcasting and television

Utilities: electric and eas

Local utilities and public services, n. e. c...

Services

Hotels and other lodging places.

Personal services^.

Business services, n. e. c

Miscellaneous repair services and hand trades

Motion pictures

Amusement and recreation, except motion pictures.

Engineering and other professional services, n. e. c. _

Rest of the world.

1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 Line

22,551

135

131

4

438

92

33

112

121

80

211

11,402

2,033

173

1,406

494

496

263

233

563

648

1,416

796

306

234

363

1,606

1,019

365

222

685

134

- 3 9

5,550

2, 438

3,112

1,630

1,201

- 3 8

68

- 5 0

38

411

526

107

151

90

120

- 2 4

39

43

1,507

324

56

1,106

21

727

121

65

110

309

90

26

425

29,525

145

143

2

953

234

34

310

269

106

377

16,529

1,850

194

1.544

451

794

518

276

927

615

1,708

1,434

204

219

449

2,702

1,912

552

238

1,460

769

- 1 2

1,221

6,082

2,694

3.388

1,593

1,023

- 4 7

102

7

55

453

1,156

724

60

119

173

- 4 0

50

70

1,353

224

53

1,050

26

648

112

71

127

12

232

62

32

689

33,000

161

162

- 1

1,422

304

43

387

554

134

560

18,233

1,526

244

1,524

282

717

543

174

780

562

1,552

2,427

213

134

532

3,322

1, 755

1,043

198

326

1,713

857

222

1,626

5,710

2,321

3,389

2,418

1,279

- 6 1

173

278

65

684

1,624

1,147

70

161

134

0

62

50

1,485

285

42

1,131

27

551

111

62

137

13

134

56

38

836

26,370

122

124

- 2

918

163

16

139

475

125

507

14,203

1,468

262

661

155

409

282

127

534

504

1,521

1,387

130

89

500

2,400

1,320

684

162

234

1,298

673

192

2,020

3,763

1,416

2,347

2,798

1,331

- 5 0

227

536

54

700

1,072

621

43

147

133

19

65

44

1,666

347

32

1,261

26

489

92

62

129

9

122

42

33

832

40,628

182

185

- 3

1,368

336

22

210

638

162

538

23,579

1,805

294

1, 245

284

907

664

243

991

564

2,619

1,910

398

161

849

4,465

2,464

1,268

296

437

2,007

1.400

366

3,314

6,255

2,810

3,445

3,043

1,509

- 3 8

387

342

60

783

1,981

1,287

56

230

146

86

126

50

2,202

618

52

1,504

28

480

90

56

160

1,000

42,153

153

152

1

1,356

362

12

155

649

178

533

24,999

1,591

304

992

161

746

530

216

1,352

611

2,846

2, 308

496

113

884

5,385

3,107

1, 465

408

405

2,673

1, 523

440

2,574

5,421

2,679

2,742

3,307

1,823

- 5 1

475

247

70

743

1,959

1,150

80

184

236

117

131

61

2,662

749

83

1,793

37

548

92

61

185

19

82

56

53

1,215

36,691

67

67

0

1,078

230

1

101

585

161

568

20,411

1, 547

296

533

171

571

370

201

946

613

2,169

1,751

347

124

696

3,5*4

1,794

1,074

386

310

2,444

1,606

579

2,454

4,348

1,867

2,481

3,732

2,122

- 5 2

503

366

71

722

1,825

1,169

79

168

133

91

126

59

3,001

845

88

2,030

38

540

94

61

176

15

72

65

57

1,121

38,311

48

48

0

955

274

- 8

72

457

160

482

22,116

1, 695

356

544

157

479

312

157

948

632

2, 254

2,136

358

114

837

4, 267

2, 450

1,114

415

288

2,197

1, 596

783

2,763

3,936

1,674

2,262

4,147

2,374

- 6 1

53fi

445

73

780

1,651

1,011

120

98

116

53

3,337

1,042

91

2,160

44

513

74

62

190

IS

54

65

55

1,126

34,061

74

76

- 2

973

267

- 8

31

502

181

465

18,703

1,570

331

325

151

481

330

151

887

575

2,152

1,911

260

117

849

3,200

1,608

911

417

264

1, 759

1,243

821

2,071

3,495

1,411

2, 084

4,061

2,239

- 6 7

517

510

67

795

900

365

38

159

54

116

110

58

3,473

1,104

93

2,233

43

504

65

60

173

69

44

1,413

44,862

43

42

1

1,321

435

- 7

99

567

227

419

26,310

1,890

399

614

216

755

504

251

1,095

788

2,924

2,338

415

155

1,232

4,994

3,006

1,156

471

361

2,078

1,319

821

4,277

4,925

2,194

2,731

4,150

2,378

-11 0

566

419

72

825

1,468

758

56

209

137

132

107

69

4,096

1,406

158

2,488

44

572

59

69

218

19

83

63

61

1,558

45,493

42

n. a.

n. a.

1,446

n. a.

n. a.

n. a.

n. a.

n. a.

504

26,018

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

5,141

n. a.

n. a.

4,187

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,390

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

4,307

n. a.

n. a.

n. a.

n. a.

697

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,761

43,426

n. a.

n. a.

1,186

n. a.

n. a.

n. a.

n. a.

n. a.

409

24,467

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

4,808

n. a.

n. a.

4,283

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,174

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

4,464

n. a.

n. a.

n. a.

n. a.

667

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,925

n. a.—Not available. n. e. c—Not elsewhere classified.

1. Depletion charges are not deducted in arriving at corporate profits for national income

purposes. This has an important bearing on the data for the mining industries.

2. Owing to changes in the industrial classification of the underlying data, figures for 1948

and srbsequent years in this and a number of other industries are not strictly comparable

with those shown here for 1946 and 1947 or with the values for earlier years in the 1954 National

Income supplement. Estimates for 1948 profits before tax comparable to those shown for

1947 are as follows: Lumber and furniture products, $744 million; Chemicals and allied products, $1,604 million; Products of petroleum and coal, $2,439 million; Metals, metal products,

and miscellaneous, $3,142 million; Machinery, except electrical, $1,731 million; and Electrical

machinery, $877 million.

466759 O—59 14

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204 NATIONAL INCOME AND PRODUCT TABLES

Table VI-6.—Federal and State Corporate Profits Tax Liability, by Industry, 1946-57

[Millions of dollars]

Line

10

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

All industries, total.

Agriculture, forestry, and fisheries

Farms

Agricultural services, forestry, and fisheries..

Mining

Metal mining

Anthracite mining

Bituminous and other soft coal mining.

Crude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction..

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill products

Apparel and other finished fabric products.

Lumber and furniture products

 !

Lumber and wood products, except furniture..

Furniture and fixtures

Lumber and timber basic products

Furniture and finished lumber products

Paper and allied products

Printing, publishing, and allied industries

Chemicals and allied products

 l

Products of petroleum and coal i

Rubber products

Leather and leather products

Stone, clay, and glass products

Metals, metal products, and miscellaneous

 l

Primary metal industries

Fabricated metal products, including ordnance

Instruments

Miscellaneous manufacturing

Iron and steel and their products, including ordnance

Nonferrous metals and their products

Miscellaneous manufacturing

Machinery, except electricall

Electrical machinery i

Transportation equipment, except automobiles..

Automobiles and automobile equipment

Wholesale and retail trade

Wholesale trade

Retail trade and automobile services.

Finance, insurance, and real estate

Banking

Security and commodity brokers, dealers and exchanges

Finance, n. e. c

Insurance carriers

Insurance agents and combination offices

Real estate

Transportation

Railroads

Local and highway passenger transportation

Highway freight transportation and warehousing..

Water transportation

Air transportation (common carriers).

Pipeline transportation

Services allied to transportation

Communications and public utilities

Telephone, telegraph, and related services.

Radio broadcasting and television

Utilities: electric and gas

Local utilities and public services, n. e. c...

Services

Hotels and other lodging places..

Personal services

Business services, n. e. c

Miscellaneous repair services and hand trades

Motion pictures

Amusement and recreation, except motion pictures..

Engineering and other professional services, n. e. c

1946

9,111

62

59

3

117

23

9

31

28

26

86

4,744

819

69

576

192

195

102

93

226

255

571

203

127

94

142

677

429

142

106

342

118

64

74

2,121

949

1,172

743

346

13

106

45

13

220

347

151

69

34

52

6

16

19

594

141

24

420

9

297

49

23

44

2

128

38

13

1947

11,283

67

64

3

269

67

10

93

65

34

141

6,474

756

79

615

173

302

192

110

365

246

684

390

85

88

178

1,052

741

205

106

600

323

64

474

2,302

1,039

1,263

715

316

6

111

34

19

229

526

313

47

44

74

1

19

28

531

93

22

406

10

258

45

26

49

4

91

27

16

12,483

76

74

2

396

74

14

120

144

44

221

7,056

655

96

608

129

281

207

74

308

227

629

675

91

61

211

1,299

651

420

83

145

353

101

644

2,228

931

1,297

995

453

5

146

101

23

267

681

462

39

62

66

5

26

21

582

124

18

429

11

248

46

24

56

5

72

27

18

10,375

65

64

1

259

34

5

46

132

42

212

5,713

627

103

292

87

170

113

57

221

207

630

348

58

43

200

987

508

296

70

113

549

282

89

820

1,570

620

950

1,180

523

8

153

209

18

269

474

271

29

60

61

10

24

19

674

159

15

228

40

25

55

4

62

26

16

1950

17,865

98

94

4

396

102

7

74

151

62

256

10,913

831

138

564

132

394

281

113

462

258

1,294

604

196

72

406

2,101

1,156

596

143

206

938

687

169

1, 667

2,709

1,230

1,479

1,414

639

12

254

159

21

329

900

570

33

101

75

40

57

24

939

273

24

631

11

240

43

24

73

6

51

24

19

22,447

101

97

4

445

130

5

59

181

70

301

14,364

877

172

559

106

371

246

125

821

331

1,758

941

325

72

504

3,163

1,845

843

247

228

1, 591

949

259

1,565

2,834

1,453

1,381

1,700

847

11

316

129

41

356

1,037

591

47

131

67

71

32

1,341

394

45

324

52

31

105

1952

19,459

72

68

4

348

83

3

37

168

57

317

11,565

883

168

337

105

287

171

116

549

335

1,302

613

217

68

385

1,991

966

609

232

184

1,459

998

375

1,493

2,313

994

1,319

1,952

1,005

16

337

192

28

374

1,022

617

53

95

60

71

33

1,544

456

46

1,023

19

53

32

102

8

55

40

1953

20,222

66

62

4

265

95

2

30

80

58

278

12,395

925

204

331

100

235

139

532

349

1,347

730

218

66

455

2, 385

1,333

631

250

171

1,293

983

506

1,736

2,127

899

1,228

2,137

1,118

14

336

256

46

367

917

538

46

100

80

59

63

31

1,721

557

55

1,087

22

316

47

32

108

9

46

38

1954

17,220

58

55

285

100

2

17

104

62

274

9,637

854

173

239

96

237

146

91

472

312

1,142

506

147

64

417

1,719

839

499

224

157

959

684

433

1,183

1,969

797

1,172

2,298

1,193

24

342

303

46

390

589

264

30

54

32

1,784

576

60

1,125

23

326

46

32

105

6

67

40

30

1955

21,827

60

56

4

422

186

3

32

123

78

261

13,109

996

208

339

120

342

212

130

583

410

1,507

591

223

81

604

2,553

1,493

607

251

202

1,125

727

442

2,258

2,541

1,111

1,430

2,135

1,005

26

374

264

47

419

842

445

36

114

77

77

54

39

2,097

728

84

1,259

26

360

46

36

130

1956

22,422

58

n. a.

n. a.

469

ji. a.

n. a.

n. a.

n. a.

n. a.

306

13,222

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

2,671

n. a.

n. a.

2,253

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

822

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

2,217

n. a.

n. a.

n. a.

n. a.

404

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1957

21,649

61

n. a.

n. a.

358

n. a.

n. a.

n. a.

n. a.

n. a.

280

12,321

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

2,603

n. a.

n. a.

2,549

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

721

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

2,339

n. a.

n. a.

n. a.

n. a.

417

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.—Not available. n. e. c—Not elsewhere classified.

1. Estimates for 1948 and subsequent years are not strictly comparable with those for earlier years. See table VI-5, footnote 2.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
INCOME AND EMPLOYMENT BY INDUSTRY 205

Table Vl-1 .—Corporate Profits After Tax, by Industry, 1946-57 l

[Millions of dollars]

AH industries, total.

Agriculture, forestry, and fisheries

Farms

Agricultural services, forestry, and fisheriesMining

Metal mining

Anthracite mining

Bituminous and other soft coal miningCrude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction.

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill products

Apparel and other finished fabric products.

Lumber and furniture products

 2

Lumber and wood products, except furniture _

Furniture and fixtures

Lumber and timber basic products

Furniture and finished lumber products

Paper and allied products

Printing, publishing, and allied industries

Chemicals and allied products

 2

Products of petroleum and coal2

Rubber products

Leather and leather products

Stone, clay, and glass products

Metals, metal products, and miscellaneous

 2

Primary metal industries

Fabricated metal products, including ordnance

Instruments

Miscellaneous manufacturing

Iron and steel and their products, including ordnance

Nonferrous metals and their products

Miscellaneous manufacturing

Machinery, except electrical

 2

Electrical machinery

 2

Transportation equip ment, except automobilesAutomobiles and auto mobile equipment

Wholesale and retail trade

Wholesale trade

Retail trade and automobile services.

Finance, Insurance, and real estate

Banking

Security and commodity brokers, dealers and exchanges

Finance, n. e. c

Insurance carriers

Insurance agents and combination offices

Real estate

Transportation

Railroads

Local and highway passenger transportation

Highway freight transportation and warehousing.

Water transportation

Air transportation (common carriers)_

Pipeline transportation

Services allied to transportation

Communications and public u tilities

Telephone, telegraph, and related services.

Radio broadcasting and television

Utilities: electric and gas

Local utilities and public services, n. e. c...

Services

Hotels and other lodging places..

Personal services

Business services, n. e. c

Miscellaneous repair services and hand trades

Motion pictures

Amusement and recreation, except motion pictures_

Engineering and other professional services, n. e. c —

Rest of the world.

1946

13,440

73

72

1

321

69

24

81

93

54

125

6,658

1,214

104

830

302

301

161

140

337

393

845

593

179

140

221

929

590

223

116

343

16

-103

14

3,429

1,489

1,940

887

855

- 5 1

- 3 8

- 9 5

25

191

179

- 4 4

82

56

68

- 3 0

23

24

913

183

32

686

12

430

72

42

66

4

181

52

13

1947

18,242

78

79

- 1

684

167

24

217

204

72

236

10,055

1,094

115

929

278

492

326

166

562

369

1,024

1,044

119

131

271

1,650

1,171

347

132

860

446

- 7 6

747

3,780

1,655

2,125

878

707

- 5 3

- 9

- 2 7

36

224

630

411

13

75

- 4 1

31

42

822

131

31

644

16

390

67

45

78

141

35

16

689

1948

20,517

88

- 3

1,026

230

29

267

410

90

339

11,177

871

148

916

153

436

336

100

472

335

923

1, 752

122

73

321

2,023

1,104

623

115

181

1,025

504

121

982

3,482

1,390

2,092

1,423

826

- 6 6

27

177

42

417

943

685

31

- 5

36

29

903

161

24

702

16

303

65

62

29

20

836

15,995

57

60

- 3

659

129

11

93

343

83

295

8,490

841

159

369

68

239

169

70

313

297

891

1,039

72

46

300

1,413

812

388

92

121

749

391

103

1,200

2,193

796

1,397

1,618

808

- 5 8

74

327

36

431

598

350

14

87

41

25

992

188

17

772

15

261

52

37

74

5

60

16

17

832

22,763

84

91

972

234

15

136

487

100

282

12,666

974

156

681

152

513

383

130

529

306

1,325

1,306

202

89

443

2,364

1,308

672

153

231

1,069

713

197

1, 647

3,546

1, 580

1,966

1,629

870

- 5 0

133

183

39

454

1,081

717

23

129

71

46

69

26

1,263

345

28

873

17

240

47

32

87

35

16

17

1,000

1951

19,706

52

55

- 3

911

232

468

108

232

i,635

714

132

433

55

375

284

91

1952

531

280

1,088

1,367

171

41

380

2,222

1,262

622

161

177

1,082

574

181

1,009

2,587

1,226

1,361

1,607

976

- 6 2

159

118

29

387

922

559

33

86

105

50

60

29

1,321

355

38

910

18

224

40

30

80

10

22

20

22

1,215

17,232

- 5

- 1

- 4

730

147

- 2

64

417

104

251

8,846

664

128

196

284

199

85

397

278

867

1,138

130

56

311

1,573

828

465

154

126

985

608

204

961

2,035

873

1,162

1,780

1,117

- 6 8

166

174

43

348

803

552

26

73

40

31

55

26

1,457

389

42

1,007

19

214

41

29

74

17

25

21

1,121

1953

18,089

- 1 8

- 1 4

- 4

690

179

- 1 0

42

377

102

204

9,721

770

152

212

57

244

173

71

416

283

907

1,406

140

48

382

1,882

1,117

483

165

117

904

613

277

1,027

1,809

775

1,034

2,010

1, 256

- 7 5

200

189

27

413

734

473

19

40

39

53

22

1,616

485

36

1,073

22

197

27

30

82

27

19

1,126

1954

16,841

16

21

- 5

167

- 1 0

14

398

119

191

9,066

716

158

244

184

60

415

263

1,010

1, 405

113

53

432

1,481

769

412

193

107

800

559

1,526

614

912

1,763

1,046

- 9 1

175

207

21

405

311

101

3

47

56

26

1,689

528

33

1,108

20

178

19

28

68

- 2

22

29

14

1,413

1955

23,035

- 1 7

- 1 4

- 3

899

249

- 1 0

67

444

149

158

13,201

894

191

275

96

413

292

121

512

378

1,417

1,747

192

74

628

2,441

1, 513

549

220

159

1956

23,071

- 1 6

n. a.

n. a.

977

n. a.

n. a.

n. a.

n. a.

n. a.

198

12,796

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

953

592

379

2,019

2,384

1,083

1,301

2,015

1,373

-136

192

155

25

406

626

313

20

95

60

55

53

30

1,999

678

74

1,229

18

212

13

33

1,558

n. a.

n. a.

n. a.

n. a.

2,470

n. a.

n. a.

1,934

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

568

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

2,090

n. a.

n. a.

n. a.

n. a.

293

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,761

1957

21,777

- 18

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

129

12,146

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

2,205

n. a.

n. a.

1,734

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

453

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

2,125

n. a.

n. a.

n. a.

n. a.

250

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,925

Line

12

13

14

15

16

17

18

19

20

21

24

25

26

27

28

29

30

31

32

33

34

35

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

60

61

62

63

64

65

66

67

69

70

71

72

n. a.—Not available. n. e. c—Not elsewhere classified.

1. See table VI-5, footnote 1.

2. Estimates for 1948 and subsequent years are not strictly comparable with those for earlier years. See table VI-5 footnote 2.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
206 NATIONAL INCOME AND PRODUCT TABLES

Table VI-8.—Net Corporate Dividend Payments, by Industry, 1946-57

[Millions of dollars]

Line

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

IS

19

20

21

22

23

24

25

26

27

2S

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

72

All industries, total.

Agriculture, forestry, and fisheries

Farms

Agricultural services, forestry, and fisheriesMining

Metal mining

Anthracite mining

Bituminous and other soft coal mining..

Crude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction..

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill products

Apparel and other finished fabric products-.

Lumber and furniture products *

Lumber and wood products, except furniture..

Furniture nnd fixtures

Lumber and timber basic products

Furniture and finished lumber products

Paper and allied products

Printing, publishing, and allied industries

Chemicals and allied products

 !

Product? of petroleum and coal*

Rubber products

Leather and leather products

Stone, clay, and glass products

Metals, metal products, and miscellaneous *

Primary metal industries

Fabricated metal products, including ordnance

Instruments

Miscellaneous manufacturing

Iron and steel and their products, including ordnance.

"Nonferrous metals and their products

Miscellaneous manufacturing

Machinery, except electricall

Electrical machinery1

Transportation equipment, except automobilesAutomobiles and automobile equipment

Wholesale and retail trade

Wholesale trade

Retail trade and automobile services._

Finance, insurance, and real estate..

Banking

Security and commodity brokers, dealers and exchanges

Finance, n. e. c -

Insurance carriers .

Insurance agents and combination offices

Real estate _.

Transportation

Railroads

Local and highway passenger transportation

Highway freight transportation and warehousing.

Water transportation

Air transportation (common carriers) _

Pipeline transportation

Services allied to transportation

Communications and public utilities

Telephone, telegraph, and related services..

Radio broadcasting and television.

Utilities: electric and gas

Local utilities and public services, n. e. c...

Services

Hotels and other lodging places..

Personal services

Business services, n. e. c __

Miscellaneous repair services and hand trades.

Motion pictures

Amusement and recreation, except motion picturesEngineering and other professional services, n. e. c~.

Rest of the world

1946

5,784

28

23

5

177

53

13

28

60

23

30

2,856

405

69

200

52

44

36

96

123

360

291

44

34

85

432

278

97

57

230

125

83

147

816

300

516

631

290

6

103

27

10

195

285

167

49

15

24

3

15

12

687

192

14

470

11

145

18

13

26

1

64

18

5

129

1947

6,521

52

50

2

260

84

10

37

98

31

36

3,414

439

75

237

49

109

62

47

136

123

401

375

35

43

97

552

370

129

53

299

162

72

210

867

332

535

570

310

- 1

45

11

14

191

246

127

35

16

37

4

15

12

714

180

14

510

10

141

16

12

29

1

61

16

221

1948

7,243

55

52

3

361

118

9

59

141

34

56

3,735

416

86

267

55

121

89

32

154

132

396

414

27

40

111

634

318

195

52

348

177

85

272

948

372

576

64a

327

0

72

22

20

199

311

198

32

19

33

4

13

12

741

182

11

539

9

142

20

13

31

1

55

15

7

254

1949

7,473

52

50

2

338

92

8

50

156

32

62

3,953

403

90

201

43

104

74

30

131

123

448

523

36

37

124

621

314

188

57

62

333

188

85

463

856

327

529

656

348

- 1

40

47

17

205

271

153

31

21

33

3

18

12

830

202

7

611

10

150

18

14

35

1

60

15

7

305

1950

9,208

59

56

3

454

131

5

52

225

41

67

4,845

434

91

232

46

141

100

41

172

122

571

476

37

37

156

819

462

219

69

69

399

254

94

704

1,001

401

600

823

401

o

134

56

23

211

365

200

28

27

37

11

50

12

1,032

252

18

749

13

136

21

14

37

2

39

16

7

426

1951

9,029

69

66

3

504

142

1

46

272

43

60

4,529

443

91

224

35

129

97

32

200

113

533

524

24

34

147

783

431

220

65

67

392

2M

94

509

939

376

563

817

412

- 3

183

10

19

196

250

32

22

42

15

21

11

1,150

294

10

834

12

150

17

11

36

3

56

18

418

1952

8,954

49

47

2

523

110

2

43

320

48

66

4,495

427

93

174

33

115

85

30

183

110

561

532

43

31

150

760

423

205

75

57

404

278

101

500

880

331

549

831

431

1

200

- 2

16

185

377

243

34

20

38

16

15

11

1,279

334

11

916

18

152

26

12

36

2

50

16

10

302

1953

9,225

42

40

2

548

111

- 2

34

364

41

59

4,719

488

97

161

103

72

31

206

115

536

624

39

28

175

772

439

202

79

52

403

313

117

510

804

272

532

879

467

- 2

162

38

25

189

420

260

31

27

17

36

13

1,319

387

9

906

17

124

17

11

37

1

35

14

311

1954

9,839

43

39

4

678

133

- 4

28

475

46

57

4,789

441

101

131

30

107

77

30

213

115

645

534

55

28

192

759

416

204

86

53

386

328

151

573

765

246

519

1,019

510

- 2

263

58

16

174

412

267

35

24

31

19

21

15

1,487

433

10

1,030

14

127

17

12

35

1

34

19

9

462

1955

11,215

39

38

1

698

186

- 2

32

427

55

66

5,651

453

103

150

29

128

92

36

234

129

769

636

61

32

211

579

215

110

64

408

377

174

789

820

251

569

1,146

566

- 2

346

40

14

182

493

306

32

29

52

24

31

19

1,689

474

15

1,184

16

138

29

13

40

3

28

15

10

475

1956

12,038

36

n. a.

n. a.

751

n. a.

n. a.

n. a.

n. a.

n. a.

59

G, 023

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

879

n. a.

n. a.

1,251

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

510

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,846

n. a.

n. a.

n. a.

n. a.

126

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

557

1957

12,355

37

n. a.

n. a.

711

n. a.

n. a.

n. a.

n. a.

n. a.

66

6,170

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

867

n. a.

n. a.

1,262

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

522

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,977

n. a.

n. a.

n. a.

n. a.

134

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

609

n. a.—Not available. n. e. c—Not elsewhere classified.

1. Estimates for 1948 and subsequent years are not strictly comparable with those for earlier years. See table VI-5, footnote 2.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
INCOME AND EMPLOYMENT BY INDUSTRY

Table VI-9.—Undistributed Corporate Profits, by Industry, 1946-57

[Millions of dollars]

207

All industries, total.

Agriculture, forestry, and fisheries

Farms

Agricultural services, forestry, and fisherie

Mining

Metal mining

Anthracite mining

Bituminous and other soft coal mining.

Crude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill products

Apparel and other finished fabric products..

Lumber and furniture products '

Lumber and wood products, except furniture

Furniture and fixtures

Lumber and timber basic products

Furniture and finished lumber products

Paper and allied products

Printing, publishing, and allied industries

Chemicals and allied products 1

Products of petroleum and coal* .. _._

Rubber products

Leather and leather products

Stone, clay, and glass products

Metals, metal products, and miscellaneous '

Primary metal industries

Fabricated metal products, including ordnance

Instruments •_

Miscellaneous manufacturing

Iron and steel and their products, including ordnance.

Nonferrous metals and their products

Miscellaneous manufacturing

Machinery, except electricall

Electrical machinery 1

Transportation equipment, except automobiles.

Automobiles and automobile equipment

Wholesale and retail trade

Wholesale trade

Retail trade and automobile servicesFinance, insurance, and real estate

Banking

Security and commodity brokers, dealers and exchanges.

Finance, n. e. c

Insurance carriers

Insurance agents and combination offices

Real estate

Transportation

Railroads

Local and highway passenger transportation

Highway freight transportation and warehousing..

Water transportation

Air transportation (common carriers)

Pipeline transportation

Services allied to transportation

Communications and public utilities

Telephone, telegraph, and related services.

Radio broadcasting and television

Utilities: electric and gas..

Local utilities and public services, n. e. c...

Services

Hotels and other lodging places

Personal services

Business services, n. e. c

Miscellaneous repair services and hand trades

Motion pictures

Amusement and recreation, except motion pictures..

Engineering and other professional services, n. e. c .

Rest of the world

1946

i

7,656

45

49

- 4

144

16

11

53

33

31

95

3,802

809

35

630

250

221

117

104

241

270

485

302

135

106

136

312

126

59

113

-109

-186

-133

2,613

1,189

1,424

256

565

- 5 7

-141

-122

15

- 4

-10 6

-211

33

41

44

- 3 3

8

12

226

- 9

18

216

1

285

54

29

40

3

117

34

1947

11,721

26

29

- 3

14

180

106

41

200

6,641

655

40

692

229

383

264

119

426

246

623

669

84

88

174

801

218

79

561

284

-148

537

2,913

1,323

1,590

308

397

- 5 2

- 5 4

- 3 8

22

33

384

284

- 2 2

59

62

- 4 5

16

30

108

- 4 9

17

134

6

249

51

33

49

7

80

19

10

1948

13,274

30

36

- 6

665

112

20

208

269

56

283

7,442

455

62

649

315

247

318

203

527

1.338

95

33

210

1,389

786

428

63

112

677

327

36

710

2,534

1,018

1,516

783

499

- 6 6

- 4 5

155

22

218

632

487

- 1

80

23

17

162

- 2 1

13

163

7

161

45

25

50

582

1949

8,522

5

10

- 5

321

37

3

43

187

51

233

4,537

438

69

168

25

135

95

40

182

174

443

516

176

792

498

200

35

59

416

203

18

737

1,337

469

868

962

460

- 5 7

34

280

19

226

327

197

- 1 7

66

39

6

23

13

162

- 1 4

10

161

5

111

34

23

39

4

0

1

10

527

1950

13,555

25

35

- 1 0

518

103

10

84

262

59

215

7,821

540

65

449

106

372

283

89

357

184

754

830

165

52

287

1,545

846

453

84

162

670

459

103

883

2,545

1,179

1,366

806

469

- 4 8

- 1

127

16

243

716

518

- 5

102

34

34

19

14

231

93

10

124

4

104

26

18

50

4

- 4

0

10

574

1951

10,677

- 1 7

- 1 1

- 6

407

90

6

50

196

65

172

6,106

271

41

209

20

246

187

59

331

167

555

843

147

233

1,439

831

402

96

110

690

320

87

500

1,648

850

798

790

564

- 5 9

- 2 4

108

10

191

529

309

1

64

63

35

39

18

171

61

28

76

6

74

23

19

44

- 3 4

2

13

797

8,278

- 5 4

207

37

- 4

21

97

56

185

4,351

237

35

22

33

169

114

55

214

168

306

606

87

25

161

813

405

260

79

581

330

103

461

1,155

542

613

- 3 4

176

27

163

426

309

- 8

53

2

15

40

15

178

55

31

91

1

62

15

17

38

5

- 3 3

9

11

819

1953

8,864

- 6 0

- 5 4

142

68

13

61

145

5,002

282

55

52

25

111

101

40

210

168

371

782

101

20

207

1,110

678

281

86

65

501

300

160

517

1,005

503

502

1,131

789

- 7 3

38

151

2

224

314

213

- 1 2

61

4

22

17

297

93

27

167

5

73

10

19

4.5

3

- 2 7

13

10

815

1954

7,002

- 2 7

- I S

10

34

- 6

- 1 4

- 7 7

73

134

4,277

275

57

- 4 5

25

137

107

30

202

148

365

871

58

25

240

722

8)3

208

107

54

414

231

237

315

761

368

393

744

536

149

5

231

-101

-166

- 2 7

28

35

11

202

95

23

78

6

51

2

16

33

- 3

- 1 2

10

5

951

1955

11,820

- 5 6

- 5 2

- 4

201

63

- 8

35

17

94

92

7,550

441

88

125

285

200

85

278

249

648

1,111

131

42

417

1,473

934

334

110

95

545

215

205

1,230

1,564

832

732

807

-134

-154

115

11

224

133

7

- 1 2

31

22

11

310

204

59

45

2

74

- 1 6

20

7

- 1 0

9

16

1,083

1956

11,033

- 5 2

n. a.

n. a.

226

n. a.

n. a.

n. a.

n. a.

n. a.

139

6,773

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,591

n. a.

n. a.

683

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

58

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

244

n. a.

n. a.

n. a.

n. a.

167

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,204

1957 Line

9,422

- 5 5

n. a.

n. a.

117

n. a.

n. a.

n. a.

n. a.

n. a.

63

5,976

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,338

n. a.

n. a.

472

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

- 6 9

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

148

n. a.

n. a.

n. a.

n. a.

116

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,316

n. a.—Not available. n. e. c.—Not elsewhere classified.

1. Estimates for 1948 and subsequent years are not strictly comparable with those for earlier years. See table VI-5, footnote 2.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
208 NATIONAL INCOME AND PRODUCT TABLES

Table VI-10.—Corporate Profits (Before Tax) and Inventory Valuation Adjustment, by Broad Industry Groups, Seasonally Adjusted

Quarterly Totals at Annual Rates, 1946-47

[Billions of dollars]

Line

1946

II III IV Year

1947

I II I V Year

All industries, totalManufacturing.

Durable-goods industries

Nondurable-goods industriesTransportation, communications, and public utilities.

All other industries

13.5

5.3

- . 9

6.2

1.9

6.3

16.5

8.6

2.0

6.6

1.4

6.5

17.9

8.2

3.7

4.5

2.2

7.6

21.2

11.4

3.5

7.9

1.8

8.0

17.3

8.4

2.1

6.3

1.8

7.1

20.2

11.0

3.7

7.3

1.3

7.9

23.8

13.0

6.5

6.6

2.4

8.4

24.5

13.<4

5.5

7.9

2.3

8.7

26.0

13.8

5.8

8.0

2.4

9.8

23.6

12.8

5.3

7.4

2.1

8.7

Table VI-10.—Corporate Profits (Before Tax) and Inventory Valuation Adjustment, by Broad Industry Groups, Seasonally Adjusted

Quarterly Totals at Annual Rates, 1952-53

[Billions of dollars]

Line

All industries, total

Manufacturing

Durable-goods industries

N ondurable-goods industries

Transportation, communications, and public utilities

All other industries

1952

I

39.1

22.5

12.6

9.9

5.1

11.5

II

36.6

20.5

11.2

9.3

4.4

11.7

III

36.0

19.6

10.7

9.0

4.6

11.8

IV

38.9

21.6

12.7

9.0

5.2

12.1

Year

37.7

21.1

11.8

9.3

4.8

11.8

1953

I

40.5

23.9

14.0

9.9

5.2

11.3

II

39.8

23.0

13.3

9.7

5.1

11.8

III

37.5

22.1

12.7

9.4

4.9

1 0 . r>

IV

31.4

16.6

8.5

8.1

4.4

10.4

Year

37.3

21.4

12.1

9.3

4.9

11.0

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
INCOME AND EMPLOYMENT BY INDUSTRY 209

Table VI-10.—Corporate Profits (Before Tax) and Inventory Valuation Adjustment, by Broad Industry Groups, Seasonally Adjusted

Quarterly Totals at Annual Rates, 1948-51

[Billions of dollars]

I

29.

16.

7.

9.

2.

10.

6

6

2

4

6

4

II

30.

16.

7.

9.

2.

11.

9

5

0

6

9

5

1948

I II

30.6

16.3

7.0

9.3

3.0

11.3

IV

32.4

17.7

8.3

9.4

3.1

11.6

Year

30.8

16.8

7.4

9.4

2.9

11.2

I

29.6

16.2

8.0

8.1

2.8

10.6

II

27.6

14.7

7.5

7.2

2.8

10.0

1949

III

29.

16.

8.

7.

3.

10.

6

5

7

8

1

0

IV

26.

13.

7.

6.

2.

9.

2

9

2

7

8

6

Year

28.2

15.3

7.9

7.4

2.9

10.1

1950

I

29.4

15.5

8.5

7.0

3.1

10.7

II

33.5

18.9

11.0

7.9

3.6

11.0

III

39.2

22.3

13.7

8.7

4.3

12.5

IV

40.6

24.8

15.0

9.8

4.9

10.9

Year

35.7

20.4

12.0

8.4

4.0

11.3

I

40.

23

14

9

4

12

4

4

0

4

2

8

II

41.

24.

13.

11.

4.

11.

1

8

6

2

4

9

1951

I II

41.

25.

13.

12.

4.

11.

2

2

0

2

4

6

IV

41.

24.

13.

10.

5.

11.

1

2

4

8

2

7

Year

41.0

24.4

13.5

10.9

4.5

12.0

Line

1

2

3

4

5

6

Table VI—10.—Corporate Profits (Before Tax) and Inventory Valuation Adjustment, by Broad Industry Groups, Seasonally Adjusted

Quarterly Totals at Annual Rates, 1954-57

[Billions of dollars]

1954

I

32.5

17.9

9.8

8.1

4.3

10.3

II

33.3

18.0

10.1

8.0

4.3

11.0

I II

33.0

17.8

9.9

8.0

4.4

10.8

IV

36.1

19.8

10.8

9.0

4.6

11.8

Year

33.7

18.4

10.1

8.3

4.4

11.0

1955

I

40.3

22.2

12.7

9.5

5.3

12.8

II

41.9

24.3

13.7

10.6

5.6

12.0

III

44.4

26.3

14.9

11.4

5.3

12.9

I V

45.8

27.0

15.4

11.6

5.5

13.2

Year

43.1

25.0

14.2

10.8

5.4

12.8

1956

I

43.3

24.9

13.6

11.3

5.5

12.9

II

41.6

23.7

12.9

10.8

5.6

12.4

III

42.8

23.8

12.4

11.4

5.6

13.5

IV

44.0

25.6

14.8

10.8

5.5

12.9

Year

42.9

24.5

13.4

11.1

5.5

12.9

1957

I

43.7

24.9

14.5

10.4

5.7

13.1

II

42.0

23.4

13.4

10.0

5.6

13.0

III

43.1

24.3

14.1

10.2

5.7

13.1

IV

38.8

21.5

12.1

9.4

5.4

11.9

Year

41.9

23.5

13.5

10.0

5.6

12.8

Line

1

2

3

4

5

6

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
210 NATIONAL INCOME AND PRODUCT TABLES

Table VI-11.—Inventory Valuation Adjustment, by Industry Division, 1946-57

[Millions of dollars]

Line

All industries, total

Corporations, total

Mining

Contract construction

Manufacturing

Wholesale and retail trade

Transportation

Communications and public utilities.

Unincorporated enterprises, total

Mining

Contract construction

Manufacturing

Wholesale and retail trade

1946

-6,968

-5,263

- 7 5

- 3 9

- 3 , 041

-1,881

-144

- 8 3

-1,705

- 1 3

- 4 0

-221

-1,431

1947

-7,370

-5,899

- 7 0

-109

- 3 , 737

-1,628

-213

-142

-1,471

- 1 4

-109

-225

- 1 , 123

1948

-2,562

-2,152

- 6 1

- 4 2

-1,442

-366

-151

- 9 0

-410

- 1 2

- 4 0

- 3 6

-322

1949

2,319

1,856

31

24

1,107

567

59

463

5

23

56

379

1950

-6,059

-4,965

- 4 9

- 7 2

-3,183

-1,450

-100

-111

-1,094

- 6

- 6 7

-149

-872

1951

-1,526

-1,199

- 9

- 1 2

-601

-470

- 7 8

- 2 9

-327

0

- 1 0

- 4

-313

1952

1,182

981

- 1 1

- 3

654

360

2

- 2 1

201

0

- 4

24

181

1953

-1,165

-997

- 3 7

- 8

-692

-193

- 4 6

- 2 1

-168

- 1

- 7

- 1 0

-150

1954

-367

-318

0

- 1 4

-315

- 1

- 8

20

- 4 9

0

- 1 0

7

- 3 2

1955

-1,934

-1,736

- 4 3

- 4 3

-1,348

-151

- 4 7

-104

-198

0

- 3 3

- 3 4

-131

1956

-3,057

-2,560

- 1 9

- 1 3

-1,513

-856

- 5 6

-103

-497

0

- 1 1

- 3 4

-452

1957

-1,845

-1,548

- 1 1

2

-957

-552

- 3 6

6

-297

0

3

- 1 5

-285

Line

10

11

12

13

Table VI-12.—Net Interest, by Industry Division, 1946-57

[Millions of dollars]

Line

1

2

3

4

5

AH industries, to tal

Agriculture, forestry, and fisheries-...

Mining

Contract construction

Manufacturing

Wholesale and retail trade

Finance, insurance, and real estate...

Transportation

Communications and public utilities

Services

Rest of the world

1946

3,113

293

7

4

-118

-86

1,516

361

277

730

129

1947

3,792

324

8

15

-13

-49

1,705

338

314

1,032

118

1948

1,179

359

8

15

- 7

- 3

,627

319

356

,366

139

1949

4,773

405

16

10

- 8

n

1,790

327

428

1,655

157

1950

5,469

455

22

15

-96

5

2,001

327

454

2,116

170

1951

6,272

532

5

41

-101

67

2,356

328

521

2,362

161

1952

589

9

41

6

52

2,602

321

570

2,717

177

1953

8,196

619

4

26

10

46

2,984

323

623

168

1954

9,145

636

11

33

50

85

3,450

329

744

3,625

182

1955

10,381

678

12

49

-43

89

4,080

360

770

4,182

204

1956

11,302

728

9

28

-107

47

4,410

350

791

4,807

239

1957

12,598

754

13

15

-46

57

5,028

367

899

5,212

299

Line

1

2

3

4

5

6

7

8

9

10

11

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
INCOME AND EMPLOYMENT BY INDUSTRY

Table VI-13.—Number of Full-Time Equivalent Employees, by Industry, 1946-57 1

[Data in thousands]

211

1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 Line

All industries, total

Agriculture, forestry, and Gsheries

Farms

Agricultural services, forestry, and fisheries..

Mining

Metal mining

Anthracite mining

Bituminous and other soft coal mining

Crude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill product?

Apparel and other finished fabric products..

Lumber and furniture products

 2

Lumber and wood products, except

furniture.

Furniture and fixtures

Lumber and timber basic products

Furniture and finished lumber products.

Paper and allied products

Printing, publishing, and allied industries..

Chemicals and allied products

 2

Products of petroleum and coal 2

Rubber products

Leather and leather products

Stone, clay, and glass products

Metals, metal products, and miscellaneous

 2

.

Primary metal industries

Fabricated metal products, including

ordnance.

Instruments

Miscellaneous manufacturing

Iron and steel and their products,

including ordnance.

Nonferrous metals and their products...

Miscellaneous manufacturing

Machinery, except electrical2

Electrical machinery

 2

Transportation equipment, except automobiles.

Automobiles and automobile equipment

Wholesale and retail trade

Wholesale trade

Retail trade and automobile services

Finance, insurance, and real estate

Banking

Security and commodity brokers, dealers

and exchanges.

Finance, n. e. c

Insurance carriers

Insurance agents and combination offices

Real estate

Transportation

Railroads

Local and highway passenger transportation.

Local railways and buslines

Highway passenger transportation,

n. e. c.

Highway freight transportation and warehousing.

Water transportation

Air transportation (common carriers)

Pipeline transportation

Services allied to transportation

Communications and public utilities

Telephone, telegraph, and related services...

Radio broadcasting and television

Utilities: electric and gas

Local utilities and public services, n. e. c

Services

Hotels and other lodging places

Personal services

Private households

Commercial and trade schools and employment agencies.

Business services, n. e. c

Miscellaneous repair services and hand

trades.

Motion pictures

Amusement and recreation, except motion

pictures.

Medical and other health services

Legal services

Engineering and other professional services,

n. e. c.

Educational services, n. e. c. 3

Nonprofit membership organizations, n. e. CGovernment and government enterprises

Federal—general government

Civilian, except work relief *

Military 5

Work relief

Federal—government enterprises

State and local—general government

Public education

 3

Nonschool, except work relief

Work relief

State and local—government enterprises

Rest of the world

 6

Addendum: All private industries

47,460

2,309

2,189

120

871

88

82

391

221

89

1,739

14,493

1,500

104

1,313

1,117

1,064

578

486

449

668

705

219

265

411

474

2,704

1,670

498

536

1,393

847

593

667

8,226

2,215

6,011

1,594

374

53

94

475

143

455

2,886

1,564

402

203

199

440

200

82

27

171

1,100

613

36

429

22

5,452

462

857

1,503

25

324

107

228

233

701

103

313

514

8,791

5,276

1,842

3,434

47,453

2,392

2, 2^>7

125

938

99

80

429

235

9f

2,062

15,215

1,530

100

1,327

1,128

1,210

658

552

464

705

723

228

270

406

503

2,882

1,863

482

537

1,549

929

512

749

8,688

2,408

6,280

1,643

393

49

102

514

146

439

2,869

1,543

406

198

208

461

163

83

28

185

1,177

643

41

470

23

5,732

461

863

1,605

31

351

116

229

235

767

104

337

540

6,732

3,015

1,416

1,599

48,370

2,467

2,337

130

986

101

81

452

25*

97

2,278

15,285

1,528

99

1,366

1,175

1,1S7

838

349

470

721

692

243

254

403

523

2,971

1,231

1,029

249

462

1,541

875

471

766

8,934

2,498

6,436

1,703

407

48

106

545

153

444

2,815

1,503

385

171

214

482

159

80

30

176

1,269

693

47

506

23

5,828

457

853

1,574

34

376

113

225

247

816

102

106

371

554

6,800

2,871

1,403

1,468

47,108

2,382

2,252

130

914

95

77

398

248

96

2,166

14,183

1,509

101

1, 229

1,157

1,057

732

325

48,675

2,219

2,090

129

916

97

75

395

251

98

2,381

14,969

1,517

97

1,292

1,183

1,171

79S

373

453

727

659

236

232

388

487

2,664

1,090

922

227

425

484

741

677

238

245

393

518

2,920

1,192

1,024

247

457

1,317

765

459

743

8,840

2,451

1,731

411

46

112

568

160

434

2,617

1,349

374

166

208

479

139

79

29

168

1,280

688

49

520

23

5,836

445

831

1,571

37

372

106

226

243

846

104

102

387

566

7,154

3,032

1,428

1,604

1,362

874

447

810

9,005

2,487

6,518

1,805

420

49

122

589

171

454

2,652

1,373

354

157

197

525

126

79

27

168

1,270

667

53

527

23

6,073

440

832

1,710

39

387

102

224

240

912

109

104

393

581

7,380

3,142

1,448

1,694

526

2,828

1,276

1,552

483

3,053

1,364

1,689

505

3,209

1,418

1,791

528

3,369

1,491

1,878

516

3,484

1,536

1,948

161

5

38,670

181

5

40,716

215

5

41,565

i

225

5

39,949

238

5

41,290

52,864

2,129

1,988

141

925

102

70

372

276

105

2,659

16,163

1, 553

104

1,272

1,193

1, 218

853

365

54,135

2,067

1,921

146

899

103

64

334

292

106

2,693

16,449

1,549

104

1,195

1,209

1, K-2

796

509

765

750

2.50

264

379

555

3,205

1,318

1,136

286

46.5

503

777

7R9

252

2^7

382

535

3,250

1.253

1,229

307

461

1,623

1,002

669

852

9,489

2,616

6,873

1,893

451

53

135

613

181

460

2,817

1,433

353

151

202

587

143

86

28

187

1,310

693

57

536

24

6,214

455

847

1,667

37

401

126

220

236

981

115

131

394

604

9,260

4,926

1,802

3,124

1,699

1,087

911

798

9,688

2,683

7,005

1,959

477

54

148

640

186

454

2,797

1,383

349

145

204

610

144

98

29

184

1,346

719

59

544

24

6,195

463

847

1,524

34

431

136

215

233

1,026

116

155

396

619

10,036

5, 531

1,893

3,638

527

3,557

1,581

1,976

558

3,659

1,655

2,004

250

5

43,599

6

44,093

55,201

2,079

1,935

144

858

107

54

289

299

109

2,665

17,260

1, .

R.52

104

1,188

1,239

1,142

768

374

53,183

2,075

1,930

145

779

101

40

228

303

107

2,644

16,055

1, .527

103

1,075

1,181

1,048

702

346

54,827

2,044

1,896

148

782

105

31

220

315

111

2,783

16,607

1,525

100

1,084

1,219

1,114

742

372

56,236

2,007

1,851

156

819

111

30

233

327

118

2,904

16,950

1,541

97

1,062

1,226

1,114

732

382

531

801

807

255

280

385

546

3,544

1,338

1,374

329

503

532

813

793

247

253

368

521

3,194

1,185

1,21b

314

479

549

832

809

247

273

381

551

3,357

1,292

1,255

316

494

567

858

839

246

274

378

566

3,415

1,322

1,252

334

507

1,730

1,219

1,016

921

9,837

2,729

7,108

2,040

502

54

159

677

193

455

2,796

1,360

342

141

201

643

137

105

28

181

1,388

744

64

555

25

6,280

472

844

1,483

34

463

135

207

235

1,081

120

165

407

634

9,993

5,340

1,795

3,545

1,561

1,092

962

785

9,765

2,727

7,038

2,116

519

58

170

702

201

466

2,597

1,206

323

134

189

638

125

105

27

173

1,391

738

69

560

24

6,239

461

835

1,365

34

471

131

204

232

1,150

122

163

424

647

9,817

4,999

1,673

3,326

1,594

1,134

937

901

10,030

2,793

7,237

2,218

538

66

187

723

208

496

2,638

1,197

308

124

184

684

130

114

26

179

1,412

750

72

564

26

6,617

470

840

1,557

509

142

202

237

1,216

124

180

447

657

9,691

4,706

1,681

3,025

1,724

1,205

1,023

81.5

10,362

2,908

7,454

2,318

568

71

206

750

217

506

2,685

1,184

301

116

185

723

133

131

26

187

1,471

795

75

575

26

6,936

483

855

1,612

40

565

155

197

240

1,292

126

213

483

675

9,780

4,553

1,705

2,848

547

3,811

1,732

2,079

546

3,977

1,812

2,165

542

4.143

1,915

2,228

544

4,380

2,036

2,344

295

5

45,203

295

5

43,661

300

5

45,131

303

4

46,452

56,544

2,000

1,842

158

812

111

29

229

327

116

2,831

16,863

1, 516

93

1.007

1,204

1,035

656

379

565

874

8.52

216

269

372

559

3,411

1.317

1,257

342

495

1,727

1,235

1,112

786

10,483

2,949

7,534

2,376

596

72

217

790

220

481

2,657

1,117

301

112

189

737

140

145

26

191

1,493

810

78

580

25

7,100

493

856

1,589

44

614

165

187

240

1,361

127

225

513

686

9,925

4,486

1,701

2,785

558

4,565

2,140

2,425

316

4

46,615

n. e. c—Not elsewhere classified.

1. Full-time equivalent employment measures man-years of full-time employment of wage

and salary earners and its equivalent in work performed by part-time workers. Full-time

employment is defined simply in terms of the number of hours which is customary at a particular time and place. For a full explanation of the concept see SURVEY OF CURRENT BUSINESS, June 1945, pp. 17-18.

2. Owing to changes in the industrial classification of the underlying data, figures for 1948

and subsequent years in this and a number of other industries are not strictly comparable

with those shown here for 1946 and 1947 or with the figures for earlier years in the 1954 National

Income supplement. Estimates for 1948 employment comparable to those shown for 1947 are

as follows: Lumber and furniture products, 1,220; Chemicals and allied products, 723; Products

of petroleum and c°al, 235; Metals, metal products, and miscellaneous, 2,873; Machinery,

except electrical, 1,562; and Electrical machinery, 889.

3. School teachers are considered to be employed during vacation periods.

4. Includes United States citizens, but not foreigners, employed abroad by the U. S. Government.

5. Includes personnel stationed abroad, but personnel recruited from the territories is

excluded.

6. Represents the estimated number of permanent United States residents employed m the

United States by foreign governments and international organizations.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
212 NATIONAL INCOME AND PRODUCT TABLES

Table VI-14.—Average Number of Full-Time and Part-Time Employees, by Industry, 1946-57 *

[Data in thousands]

Line

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

AH industries, total

Agriculture, forestry, and fisheries

Farms

Agricultural services, forestry, and fisheries.

Mining

Metal mining

Anthracite mining

Bituminous and other soft coal mining

Crude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill products

Apparel and other finished fabric products..

Lumber and furniture products

 2

Lumber and wood products, except furniture.

Furniture and fixtures

Lumber and timber basic products

Furniture and finished lumber products.

Paper and allied products

Printing, publishing, and allied industries._

Chemicals and allied products

 2

Products of petroleum and coal2

Rubber products

Leather and leather products

Stone, clay, and glass products

Metals, metal products, and miscellaneous

 2

.

Primary metal industries

Fabricated metal products, including

ordnance.

Instruments

Miscellaneous manufacturing

Iron and steel and their products, including ordnance.

Nonferrous metals and their products...

Miscellaneous manufacturing

Machinery, except electrical2

Electrical machinery

 2

Transportation equipment, except automobiles.

Automobiles and automobile equipment

Wholesale and retail trade

Wholesale trade

Retail trade and automobile services

Finance, insurance, and real estate

Banking

Security and commodity brokers, dealers

and exchanges.

Finance, n. e. c

Insurance carriers

Insurance agents and combination offices

Real estate

Transportation

Railroads

Local and highway passenger transportation.

Local railways and buslines

Highway passenger transportation,

n. e. c.

Highway freight transportation and warehousing.

Water transportation

Air transportation (common carriers)

Pipeline transportation

Services allied to transportation

Communications and public utilities

Telephone, telegraph, and related services.- _

Radiobroadcasting and television

Utilities: electric and gas

Local utilities and public services, n. e. c

Services

Hotels and other lodging places

Personal serviaes

Private households

 3

Commercial and trade schools and employment agencies.

Business services, n. e. c

Miscellaneous repair services and hand

trades.

Motion pictures

Amusement and recreation, except motion

pictures.

Medical and other health services *

Legal services

Engineering and other professional services,

n. e. c.

Educational services, n. e. c*5

Nonprofit membership organizations, n. e. c

Government and government enterprises

Federal—general government

Civilian, except work relief6

Military 7

Work relief

Federal—government enterprises

State and local—general government

Public education «

Nonschool, except work relief

Work relief

State and local—government enterprises. _.

Rest of the world*

Addendum: All private industries

1946

49,642

2,343

2,189

154

871

88

82

391

221

89

1,739

14,493

1,500

104

1,313

1,117

1,064

578

486

449

668

705

219

265

411

474

2,704

1,670

498

536

1,393

847

593

667

9,055

2,286

6,769

1,692

376

64

112

484

172

484

3,009

1,564

406

203

203

528

210

82

27

192

1,104

613

40

429

22

6,007

491

912

1,756

30

354

130

253

701

114

82

313

582

9,324

5,276

1,842

3,434

572

3,297

1,414

1,883

179

5

40,313

1947

49,713

2,427

2,267

160

938

99

80

429

235

95

2,062

15,215

1,530

100

1,327

1,128

1,210

658

552

464

705

723

228

270

406

503

2,882

1,863

482

537

1,549

929

512

749

9,546

2,485

7,061

1,746

395

61

121

525

177

467

2,996

1,543

410

198

212

553

171

83

28

208

1,181

643

45

470

23

6,307

489

915

1,891

37

380

139

253

291

767

116

93

337

599

7,290

3,015

1,416

1,599

528

3,547

1,517

2,030

200

5

42,418

1948

50,693

2,500

2,337

163

986

101

81

452

255

97

2,278

15,285

1,528

99

1,366

1,175

1,187

838

349

470

721

692

243

254

403

523

2,971

1,231

1,029

249

462

1,541

875

471

766

9,804

2,578

7,226

1,810

410

58

127

559

184

472

2,943

1,503

388

171

217

578

167

80

30

197

1,273

693

51

506

23

6,423

484

903

1,888

41

401

134

249

305

816

113

106

371

612

7,386

2,871

1,403

1,468

553

3,726

1,579

2,147

236

5

43,302

1949

49,453

2,411

2,252

159

914

95

77

398

248

96

2,166

14,183

1,509

101

1,229

1,157

1,057

732

325

453

727

659

236

232

388

487

2,664

1,090

922

227

425

1,317

765

459

743

9,703

2,529

7,174

1,836

414

56

133

582

192

459

2,744

1,349

377

166

211

575

146

79

29

189

1,285

688

54

520

23

6,462

471

880

1,921

44

397

126

250

301

846

114

102

387

623

7,744

3,032

1,428

1,604

579

3,888

1,660

2,228

245

5

41,704

1950

51,145

2,246

2,090

156

916

97

75

395

251

98

2,381

14,969

1,517

97

1,292

1,183

1,171

373

484

741

677

238

245

393

518

2,920

1,192

1,024

247

457

1,362

874

447

810

9,884

2,565

7,319

1,916

423

60

146

603

204

480

2,787

1,373

357

157

200

133

79

27

189

1,275

667

58

527

23

6,778

467

880

2,131

47

412

128

912

119

104

393

639

7,988

3,142

1,448

1,694

565

4,023

1,718

2,305

258

5

43,152

1951

55,442

2,157

1,988

169

925

102

70

372

276

105

2,659

16,163

1,553

104

1,272

1,193

1,218

853

365

509

765

750

250

264

379

555

3,205

1,318

1,136

286

465

1,623

1,002

669

852

10,451

2,728

7,723

2,002

454

64

157

627

215

485

2,946

1,433

356

151

205

687

147

86

28

209

1,316

693

63

536

24

7,004

483

896

2,155

47

444

143

247

295

124

131

394

664

9,814

4,926

1,802

3,124

577

4,045

1,768

2,277

5

45,623

1952

56,787

2,094

1,921

173

899

103

64

334

292

106

2,693

16,449

1,549

104

1,195

1,209

1,162

796

366

503

777

769

252

267

382

535

3,250

1,253

1,229

307

461

1,699

1,087

911

798

10,678

2,804

7,874

2,072

482

65

171

654

221

479

2,925

1,383

352

145

207

709

147

98

29

207

1,352

719

65

544

24

7,021

493

895

2,046

42

478

153

242

291

1,026

125

155

396

679

10,598

5,531

1,893

3,638

614

4,149

1,850

2,299

304

6

46,183

1953

57,927

2,102

1,935

167

858

107

54

289

299

109

2,665

17,260

1,552

104

1,188

1,239

1,142

768

374

531

801

807

255

280

385

546

3,544

1,338

1,374

329

503

1,730

1,219

1,016

921

10,851

2,858

7,993

2,152

507

65

183

691

227

479

2,924

1,360

345

141

204

742

140

105

28

204

1,394

744

70

555

25

7,169

503

891

2,070

40

510

151

234

294

1,081

128

165

407

695

10,547

5,340

1,795

3,545

602

4,297

1,944

2,353

308

5

47,375

1954

56,284

2,096

1,930

166

779

101

40

228

303

107

2,644

16,055

1,527

103

1,075

1,181

1,048

702

346

532

813

793

247

253

368

521

3,194

1,185

1,216

314

479

1,561

1,092

962

785

10,778

2,862

7,916

2,227

525

195

715

234

490

2,716

1,206

326

134

192

731

127

105

27

194

1,398

738

76

560

24

7,168

496

882

1,985

41

524

144

231

292

1,150

130

163

424

706

10,418

4,999

1,673

3,326

602

4,508

2,043

2,465

309

5

45,861

1955

57,843

2,064

1,896

168

782

105

31

220

315

111

2,783

16,607

1,525

100

1,084

1,219

1,114

742

372

549

832

809

247

273

381

551

3,357

1,292

1,255

316

494

1,594

1,134

937

901

11,078

2,937

8,141

2,334

544

78

213

736

242

521

2,757

1,197

311

124

187

778

131

114

26

200

1,419

750

79

564

26

7,658

503

888

2,285

43

567

154

229

300

1,216

131

180

447

715

10,356

4,706

1,681

3,025

598

4,739

2,180

2,559

313

5

47,482

1956

59,528

2,026

1,851

175

819

111

30

233

327

118

2,904

16,950

1,541

97

1,062

1,226

1,114

732

567

858

839

246

274

378

566

3,415

1,322

1,252

334

507

1,724

1,205

1,023

815

11,450

3,065

8,385

2,438

575

84

234

763

252

530

2,804

1,184

304

116

188

817

134

131

26

208

1,478

795

82

575

26

8,092

516

904

2,447

48

629

166

224

304

1,292

132

213

483

734

10,563

4,553

1,705

2,848

600

5,095

2,359

2,736

315

4

48,961

1957

59,960

2,015

1,842

173

812

111

29

229

327

116

2,831

16,863

1,516

93

1,007

1,204

1,035

656

379

565

874

852

246

269

372

559

3,411

1,317

1,257

342

495

1,727

1,235

1,112

786

11,589

3,114

8,475

2,490

603

84

244

802

254

503

2,773

1,117

304

112

192

827

140

145

26

214

1,500

810

85

580

25

8,274

525

904

2,444

51

683

175

213

305

1,361

132

225

513

743

10,809

4,486

1,701

2,785

616

5,380

2,514

2,866

327

4

49,147

n. e. c—Not elsewheie classified.

1. This series measures the average number of full-time and part-time jobs filled during the

year by wage and salary earners. The difference between the data shown in table VI-13

and table VI-14 is explained in the SURVEY OF CURRENT BUSINESS, June 1945, pp. 17-18.

2. See footnote 2 to table VI-13.

3. Data represent the number of persons employed; the number of full-time and part-time

jobs is much larger.

4. Series measures full-time equivalent employment; full-time and part-time employment

not available.

5. See footnote 3 to table VI-13.

6. See footnote 4 to table VI-13.

7. See footnote 5 to table VI-13.

8. See footnote 6 to table VI-13.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
INCOME AND EMPLOYMENT BY INDUSTRY 213

Table VI-15.—Average Annual Earnings per Full-Time Employee, by Industry, 1946-57 l

[Dollars]

All industries, total

Agriculture, forestry, and fisheries

Farms

Agricultural services, forestry, and fisheriesMining

Metal mining

Anthracite mining

Bituminous and other soft coal mining

Crude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill products

Apparel and other finished fabric products..

Lumber and furniture products

 2

Lumber and wood products, except

furniture.

Furniture and fixtures

Lumber and timber basic products

Furniture and finished lumber products.

Paper and allied products

Printing, publishing, and allied industries..

Chemicals and allied products

 2

Products of petroleum and coal2

Rubber products

Leather and leather products

Stone, clay, and glass products

Metals, metal products, and miscellaneous

 2

_

Primary metal industries

Fabricated metal products, including

ordnance.

Instruments

Miscellaneous manufacturing

Iron and steel and their products, including ordnance.

Nonferrous metals and their products...

Miscellaneous manufacturing

Machinery, except electrical2

Electrical machinery

 2

Transportation equipment, except automobiles.

Automobiles and automobile equipment

Wholesale and retail trade..._

Wholesale trade

Retail trade and automobile services

Finance, insurance and real estate

Banking

Security and commodity brokers, dealers

and exchanges.

Finance, n. e. c

Insurance carriers

Insurance agents and combination offices-._

Real estate

Transportation

Railroads

Local and highway passenger transportation

Local railways and buslines

Highway passenger transportation,

n. e. c.

Highway freight transportation and warehousing.

Water transportation.

Air transportation (common carriers)

Pipeline transportation

Services allied to transportation

Communications and public utilities

Telephone, telegraph, and related services- _

Radio broadcasting and television

Utilities: electric and gas

Local utilities and public services, n. e. c

Services

Hotels and other lodging places

Personal services

Private households

Commercial and trade schools and employment agencies.

Business services, n. e. c

Miscellaneous repair services and hand

trades.

Motion pictures

Amusement and recreation, except motion

pictures.

Medical and other health services

Legal services

Engineering and other professional services,

n. e. c.

Educational services, n. e. c

Nonprofit membership organizations, n. e. c.

Government and government enterprises

Federal—general government

Civilian, except work relief

Military

Work relief

Federal—government enterprises

State and local—general government

Public education

Nonschool, except work relief

Work relief

State and local—government enterprises. __

Rest of the world

Addendum: AH private industries

2,356

1,207

1,166

1,950

2,719

2,636

2,890

2,724

2,819

2,371

2,537

2,517

2,385

1,779

2,056

2,192

1,984

1,813

2,187

2,535

2,862

2,765

3,183

2,826

2,131

2,380

2,649

2,696

2,717

2,442

2,862

2,615

2,971

2,814

2,378

3,021

2,141

2,570

2.650

5,226

3,213

2,655

2,923

1,864

2,948

3,055

2,689

2,729

2,648

2,752

3,415

2,829

3,259

2,550

2,567

2,413

3,972

2,697

2,045

1,872

1,779

1,854

1,411

2,520

2,861

2,766

2,978

2, 185

1,605

1,757

3,280

1,802

2,070

2,341

2,437

2,736

2,277

2,644

2,091

2,025

2,144

2,590

3,400

2,359

2,589

1,288

1,243

2,104

3,113

3,000

3, 125

3,212

3,157

2,663

2,829

2,793

2,669

1,950

2, 338

2,327

2,205

2,046

2,395

2,903

3,210

3,119

3,610

3,085

2,313

2,672

2,972

3,063

2,969

2,657

3,112

2,876

3,146

3,143

2,632

3,322

2,368

2,740

2.860

4,714

3,412

2,811

3, 103

2,052

3,145

3,216

2,833

2,965

2,707

3,063

3,748

3,265

3,750

2,762

2,792

2,583

4,073

2,994

2,217

2,005

1,924

1,978

1,463

2,903

3,0?3

2,974

3,031

2,345

1,821

1,971

3,495

2,113

2,172

2,574

2,793

3,074

2,543

2,865

2,298

2,261

2,327

2,818

3,400

2,591

1948

2,795

1,353

1,298

2,331

3,387

3,327

3,420

3,383

3,584

2,928

3,126

3,040

2,853

2,040

2,584

2,442

2,399

2,242

2,777

3,196

3,499

3,399

4,053

3,201

2,414

2,925

3,245

3,431

3,247

3,157

2,790

3,433

3,153

3,594

3,381

2,832

3,566

2,547

2,954

3,039

4,958

3,670

2,978

3,327

2,331

3,456

3,611

2,935

3,146

2,766

3,355

4,006

3,662

4,100

2,852

3,002

2,776

4,234

3,223

2, 391

2,114

2,031

2,084

1,500

3,147

3,226

3,150

2,911

2,437

1,918

2,196

3,745

2,261

2,334

2,758

2,931

3,168

2,704

3,095

2,533

2,538

2,528

3,023

3,200

2,801

1949

2,851

1,330

1,272

2,323

3,207

3,400

2,896

2,930

3,746

3,021

3,211

3,092

2,925

2,089

2,564

2,385

2,446

2,272

2,837

3,232

3,655

3,539

4,174

3,228

2,405

3,008

3,287

3,435

3,324

3,291

2,826

3,477

3, 252

3, 595

3, 608

2,899

3, 619

2, 623

3,034

3,173

5,043

3, 795

3,092

3, 375

2,290

3,556

3, 706

2,987

3, 277

2, 755

3,545

4,129

3,873

4,172

2,911

3,153

2,907

4,469

3,383

2,522

2,172

2,094

2,149

1,498

3,243

3, 309

3, 236

2,, 912

2,527

1,995

2,288

3,931

2,364

2,465

2,863

2,984

3,361

2,648

3,284

2,668

2,671

2,665

3, 182

3,200

2,849

1950

3,008

1,349

1,281

2,450

3,448

3,567

3,107

3,268

3,861

3, 255

3,339

3,300

3,068

2,258

2,762

2, 495

2,647

2,477

3,011

3,479

3,800

3,768

4, 315

3, 543

2,545

3,239

3, 527

3,728

3,532

3,530

2,987

3,755

3,370

3,736

4,010

3,034

3,834

2.729

3,217

3,340

6,122

3,893

3,250

3,579

2,427

3,696

3,782

3,096

3,376

2,873

3,811

4,413

4,089

4,296

3.077

3,318

3,033

4,698

3,571

2,609

2,220

2. 150

2,198

1,502

3,410

3,457

3,441

2,915

2,596

2,067

2,376

4,106

2,473

2,578

3,015

3,206

3,503

2,951

3, 512

2,755

2,794

2,725

3,227

3,600

3,006

1951

3,231

1,481

1,403

2,582

3,879

4,098

3,386

3,831

4,109

3.562

3,711

3,606

3,298

2,413

2, 899

2,578

2,835

2,668

3,225

1952

3,770

3,966

4,065

4,648

3,837

2,670

3,582

3, 900

4, 164

3,880

3,892

3,202

4,224

3,715

4,245

4,221

3,171

4,134

2,804

3,356

3,455

6,132

3,993

3,426

3,729

2,513

3,994

4.164

3, 255

3,623

2,980

3,934

4,678

4,384

4,679

3,471

3,547

3,214

5,105

3,851

2,708

2,367

2.224

2,301

1,588

3,649

3,800

3,587

3,059

2,767

2,143

2,504

4,481

2,642

2,720

3,114

3, 145

3,777

2,780

3,797

2,947

2,998

2,906

3,464

4,000

3,255

3,414

1,544

1,453

2, 740

4,057

4,544

3,500

3,760

4,432

3,821

3,991

3,828

3,468

2,567

2,987

2, 648

3, 036

2,861

3,418

3,974

4,184

4,291

4,933

4,127

2,861

3,693

4,130

4,403

4,138

4,147

3,351

4,461

3,960

4,470

4,614

3,284

4,285

2,901

3,503

3,597

5,981

4,196

3,605

3,866

2,593

4,205

4,338

3,387

3,807

3,088

4,192

5,076

4,714

5,034

3,712

3,799

3. 437

5,508

4, 125

3.083

2,545

2.326

2.416

1,707

3,765

3,998

3, 772

3,200

2,953

2,262

2,750

4,871

2,808

2,898

3,282

3,274

4,034

2,879

4,111

3,137

3,169

3,112

3,674

4,200

3,444

1953

3,587

1,540

1,437

2,924

4,353

4,888

3,389

4,194

4, 615

4,009

4,225

4,049

3,675

2,683

3,026

2,743

3,150

2,957

3,545

4,175

4,401

4,559

5,204

4,268

2, 938

3,958

4,376

4,712

4,362

4,371

3,521

4,692

4,138

4,765

4,952

3,446

4,502

3,040

3,663

3,729

6,130

4,340

3,786

4,083

2,701

4,398

4,418

3. 515

3,965

3,199

4,513

5,898

4. 933

5,214

3,928

4,039

3, 651

5,734

4,404

3,160

2,677

2,405

2,539

1,805

3,588

4,149

3, 985

3,271

3,136

2,365

2,933

5,048

2,924

3,041

3,388

3, 356

4,226

2,916

4,221

3,278

3,314

3,249

3,820

4,300

3,632

1954

3,670

1,515

1,398

3,062

4,377

4,614

3, 550

4,044

4,749

4,121

4,324

4,116

3,806

2,796

2,997

2,782

3,248

3,058

3,633

4,293

4,540

4,743

5,336

4,324

2,959

4,081

4,395

4,626

4,463

4,468

3,603

4,720

4,253

4,858

5,070

3,558

4,660

3,131

3,828

3,846

7,276

4,524

3,896

4,234

2,845

4,503

4,545

3,591

4,075

3,249

4,629

5,768

5,162

5,370

4,000

4,229

3,824

6,043

4,579

3,333

2,786

2,503

2,631

1,832

3,765

4,352

4, 031

3,475

3,362

2,417

3,090

5,196

3,005

3,179

3,501

3,436

4,320

2,992

4,262

3,445

3,510

3,390

3,942

4,400

3,707

1955

3,847

1,554

1,428

3,176

4,701

4,962

3,871

4,550

4,933

4,324

4,414

4,351

3,983

2,960

3,158

2,852

3,424

3,233

3,804

4,534

4,715

4,973

5,571

4,755

3,084

4,332

4,718

5,156

4,653

4,696

3,749

4,940

4,476

5,126

5,445

3,702

4,870

3,250

3,968

3,970

7,864

4,663

3,990

4,399

2,972

4,697

4,701

3,727

4,218

3,397

5,869

5,360

5,615

4,223

4,426

4,043

6,250

4,757

3,400

2,867

2,553

2,729

1,874

3,972

4,487

4,127

3,752

3?549

2,488

3,306

5,378

3,094

3,291

3,710

3,719

4,595

3,232

4,537

3,562

3,608

3,523

4,110

4,500

3,876

1956

4,042

1,639

1,492

3 378

5', 015

5,315

4,167

4,944

5,193

4,593

4,674

4,584

4,192

3,186

3,282

3,011

3,568

3,377

3,935

4,764

4,918

5,297

5,931

4,818

3,249

4,560

4,986

5,448

4,911

4,985

3,966

5,265

4,728

5,456

5,450

3,860

5,178

3,346

4,141

4,130

7,451

4,806

4,192

4,641

3,126

4,972

5,084

3,824

4,414

3,454

5,065

5,481

5,962

4,460

4,612

4,177

6,613

5,000

3,538

3,008

2,605

2,854

1,962

4,125

4,717

4,342

3,909

3,721

2,536

3,556

5,850

3,193

3,440

3,888

3,924

4,808

3,395

4,676

3,731

3,799

3,673

4,201

4,700

4,074

1957

4,211

1,690

1,541

3,424

5,218

5,459

4,345

5,162

5,425

4,733

4,922

4,781

4,369

3,376

3,350

3,101

3,648

3,415

4,053

4,963

5,085

5,579

6,309

5,126

3,358

4,719

5,221

5,683

5,165

5,208

4,145

5,402

4,943

5,635

5,702

4,019

5,404

3,477

4,304

4,245

7,403

5,014

4,368

4,850

3,239

5,246

5.423

3,927

4,545

3,561

5,261

6,443

5,752

6,423

4,817

4,813

4,348

6,756

5,247

3,760

3,146

2,696

2,984

2,050

4,114

4,875

4,509

4,075

3,954

2,597

3,787

3,321

3,606

4,040

4,032

4,971

3,459

4,758

3,942

4,079

3,821

4,310

5,000

4,248

Line

n. e. c.—Not elsewhere classified.

1. Average annual earnings per full-time employee are obtained by dividing wages and

salaries, as given in table VI-2, by the number of full-time equivalent employees, as given in

table VI-13. Footnotes to tables VI-2 and VI-13 are, therefore, relevant also to table VI-15.

For a full explanation of the concept of "average annual earnings per full-time employee," see

SURVEY OF CURRENT BUSINESS, June 1945, pp. 17—18.

2. See footnote 1 to table VI-2 and footnote 2 to table VI-13. Estimates of 1948 average

annual earnings comparable to those shown for 1947 are as follows: Lumber and furniture

products, $2,411; Chemicals and allied products, $3,389; Products of petroleum and coal,

$4,072; Metals, metal products, and miscellaneous, $3,252; Machinery, except electrical,

$3,431; and Electrical machinery, $3,154.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
214 NATIONAL INCOME AND PRODUCT TABLES

Table VI—16.—Number of Persons Engaged in Production, by Industry, 1946—57 l

[Data in thousands]

Line

All industries, total

Agriculture, forestry, and fisheries

Farms

Agricultural services, forestry, and fisheriesMining

Metal mining

Anthracite mining

Bituminous and other soft coal mining

Crude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill products

Apparel and other finished fabric products..

Lumber and furniture products

 2

Lumber and wood products, except

furniture.

Furniture and fixtures

Lumber and timber basic products

Furniture and finished lumber products.

Paper and allied products

Printing, publishing, and allied industries..

Chemicals and allied products

 2

Products of petroleum and coal2

Rubber products

Leather and leather products

Stone, clay, and glass products

Metals, metal products, and miscellaneous

 2

.

Primary metal industries

Fabricated metal products, including

ordnance.

Instruments

Miscellaneous manufacturing

Iron and steel and their products, including ordnance.

Nqnferrous metals and their products...

Miscellaneous manufacturing

Machinery, except electrical2

Electrical machinery

 2

Transportation equipment, except automobiles.

Automobiles and automobile equipment

Wholesale and retail trade

Wholesale trade

Retail trade and automobile services

Finance, insurance, and real estate

Bank ing

Security and commodity brokers, dealers

and exchanges.

Finance, n. e. c

Insurance carriers

Insurance agents and combination offices

Real estate

Transportation

Railroads

Local and highway passenger transportation.

Local railways and buslines

Highway passenger transportation,

n. e. c.

Highway freight transportation and warehousing.

Water transportation

Air transportation (common carriers)

Pipeline transportation

Services allied to transportation

Communications and public utilities

Telephone, telegraph, and related services.^

Radio broadcasting and television

Utilities: electric and gas_.

Local utilities and public services, n. e. c

Services

Hotels and other lodging places

Personal services

Private households

Commercial and trade schools and employment agencies.

Business services, n. e. c

Miscellaneous repair services and hand

trades.

Motion pictures

Amusement and recreation, except motion

pictures.

Medical and other health services

Legal services

Engineering and other professional services,

n. e. c.

Educational services, n. e. c .

Nonprofit membership organizations, n. e. c

Government and government enterprises

Federal—general government

Civilian, except work relief

Military

Work relief

Federal—government enterprises

State and local—general government

Public education

Nonschool, except work relief

Work relief

State and local—government enterprises

Rest of the world

Addendum: All private industries

1946

57,379

7,085

6,838

247

901

93

83

397

235

93

2,551

14,681

1,534

105

1,318

1,149

1,092

596

496

450

689

710

219

266

415

483

2,732

1,678

507

547

1,407

849

595

668

10,392

2,419

7,973

1,813

375

66

102

475

204

591

3,039

1,564

435

203

232

552

203

82

27

176

1,111

616

36

429

30

7,010

632

1,210

1,503

30

418

504

236

275

210

131

364

514

8,791

5,276

1,842

3,434

526

2,828

1,276

1,552

161

5

48,583

1947

57,652

7,042

6,785

257

973

104

82

437

250

100

3,007

15,406

1, 562

101

1,331

1,157

1,246

684

562

465

728

727

228

271

410

513

2,910

1,871

491

548

1,563

931

513

750

11,001

2,625

8,376

1,866

394

61

111

514

210

576

3,045

1,543

442

198

244

592

166

83

28

191

1,190

646

42

470

32

7,385

636

1,243

1,605

36

455

535

237

284

1,071

212

144

387

540

6,732

3,015

1,416

1,599

483

3,053

1,364

1,689

181

5

50,915

1948

58,581

7,012

6,747

265

1,021

106

83

461

269

102

3,262

15,468

1, 559

100

1,370

1,203

1,222

867

355

471

744

696

243

254

406

533

2,997

1,234

1,040

251

472

1,554

877

472

767

11,309

2,712

8,597

1,923

408

61

116

545

219

574

3,000

1,503

421

171

250

622

162

80

30

182

1,281

695

48

506

32

7,500

640

1,241

1,574

39

486

504

234

299

1,131

217

160

421

554

6,800

2,871

1,403

1,468

505

3,209

1,418

1,791

215

5

51,776

1949

57,202

6,814

6, 554

260

948

99

80

407

261

101

3,130

14,368

I, 539

102

I, 233

1,184

1,094

763

331

454

750

663

236

232

391

497

2,692

1,093

934

229

436

1,330

767

460

744

11,264

8,596

1,941

412

59

122

568

227

553

2,803

1,349

409

166

243

621

142

79

29

174

1,293

690

51

520

32

7,482

616

1,221

1,571

43

482

465

236

296

227

155

436

566

7,154

3,032

1,428

1,604

528

3,369

1,491

1,878

225

5

50,043

1950

58,731

6,546

6, 284

262

951

101

78

405

264

103

3,392

15,163

1,546

98

1, 296

1,210

1,214

835

379

485

765

681

238

245

396

527

2,950

1,195

1,037

249

469

1,377

876

448

811

11,439

2,711

8,728

2,014

421

62

133

589

241

568

2,842

1,373

386

157

229

672

130

79

27

175

1,283

669

55

527

32

7,716

609

1,225

1,710

45

497

451

234

294

1,237

234

157

442

581

7,380

3,142

1,448

1,694

516

3,484

1,536

1,948

238

5

51,346

1951

62,780

6,144

5,867

277

962

106

73

382

290

111

3,740

16,364

1,581

105

1,275

1,219

1,269

897

372

510

789

754

250

264

382

564

3, 235

1,321

1,149

288

477

1,640

1,004

670

853

11,936

2,847

9,089

2,125

452

67

147

613

256

590

3,014

1,433

151

235

740

147

86

28

194

1,324

695

59

536

34

7,906

632

1,243

1,667

44

515

495

230

291

1,307

242

190

446

604

9,260

4,926

1,802

3,124

527

3,557

1,581

1,976

250

5

53,515

1952

64,096

6,005

5,715

290

936

107

67

343

307

112

3,816

16,654

1,576

105

1,199

1,235

1,215

842

373

504

801

773

252

267

385

543

3,281

1,256

1,243

309

473

1,717

1,089

913

799

12,147

2,922

9,225

2,214

478

162

640

267

598

2,996

1,383

383

145

238

148

98

29

191

1,360

721

61

544

34

7,926

643

1,246

1,524

40

550

522

225

288

1,355

244

220

450

619

10,036

5,531

1,893

558

3,659

1,655

2,004

6

54,054

1953

65,070

5,885

5,595

290

896

111

57

297

316

115

3,801

17,462

1,578

105

1,191

1,263

1,196

815

381

532

826

810

255

280

387

554

3, 576

1,341

1,389

331

515

1,748

1,221

1,018

922

12,282

2,971

9,311

2,320

503

175

677

281

615

2,997

1,360

377

141

236

141

105

28

188

1,403

746

66

555

36

8,026

661

1,243

1,483

40

584

514

217

291

1,413

248

235

463

634

9,993

5,340

1,795

3,545

547

3,811

1,732

2,079

295

5

55,072

1954

63,351

5,877

5,588

289

820

105

42

236

323

114

3,801

16,248

1,553

103

1,078

1,204

1,097

744

353

533

837

797

247

254

371

529

3,223

1,187

1,230

316

490

1,578

1,094

964

786

12,189

2, 969

9,220

2,427

520

74

187

702

305

639

2,787

1,206

358

134

224

783

128

105

27

180

1,408

740

71

560

37

7,972

643

1,241

1,365

40

595

214

288

251

238

481

647

9,817

4,f"

1,673

3,326

546

3,977

1,812

2,165

295

5

53,529

1955

64,794

5,762

5,468

294

826

109

33

228

338

118

4,012

16,792

1,550

100

1,087

1,240

1,163

784

379

550

856

812

247

274

383

559

3,385

1,294

1,269

317

505

1,609

1,136

939

902

12,473

3,036

9,437

2,570

539

83

205

723

314

706

2,825

1,197

343

124

219

825

134

114

26

186

1,431

753

74

564

40

8,407

655

1,248

1,557

43

645

522

211

296

1,551

253

262

507

657

9,691

4,706

1,681

3,025

542

4,143

1,915

2,228

300

5

55,098

1956

66,182

5,579

5,269

310

868

115

33

242

353

125

4,195

17,138

1,568

97

1,065

1,246

1,163

774

389

568

881

843

246

275

380(

574

3,443

1,324

1,266

335

518

1,741

1,207

1,025

816

12,822

3,158

9,664

2,659

569

90

226

750

325

699

2,867

1,184

337

116

221

858

137

131

26

194

1,492

798

77

575

42

8,778

669

1,267

1,612

47

713

549

206

301

1,627

256

303

553

675

9,780

4,553

1,705

2,848

544

4,380

2,036

2,344

303

4

56,398

1957 Line

66,405

5,418

5,105

313

862

115

32

238

354

123

4,135

17,047

1,542

93

1,009

1,224

1,084

566

897

856

246

270

374

567

3,438

1,319

1,270

343

506

1,743

1,237

1,114

787

12,953

3,199

9,754

2,716

597

91

238

790

329

671

2,849

1,117

337

112

225

881

144

145

26

199

1,514

813

80

580

41

8,982

684

1,268

1,589

52

773

575

196

301

258

317

585

686

9,925

4,486

1,701

2,785

558

4,565

2,140

2,425

316

4

56,476

n. e. c—Not elsewhere classified.

1. This series measures man-years of full-time employment by persons working for wages

or salaries (as shown in table VI-13) and by active proprietors of unincorporated enterprises

devoting the major portion of their time to the business. "Persons engaged" falls short of

total man-years of full-time employment because of the exclusion from the data of unpaid

family workers. This exclusion is due to unresolved difficulties in their definition and measurement.

2. Owing to changes in the industrial classification of the underlying data, figures for 1948

and subsequent years in this and a number of other industries are not strictly comparable

with those shown here for 1946 and 1947 or with the figures for earlier years in the 1954 National

Income supplement. Estimates for 1948 of persons engaged in production comparable to

those shown for 1947 are as follows: Lumber and furniture products, 1,256; Chemicals and

allied products, 727; Products of petroleum and coal, 235; Metals, metal products, and misDigitized 

cellaneous, 2,898; Machinery, except electrical, 1,575; and Electrical machinery, 891.

for FRASER 

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Federal Reserve Bank of St. Louis
INCOME AND EMPLOYMENT BY INDUSTRY 215

Table VI-17.—Corporate Sales, by Industry, 1946-57

[Millions of dollars]

All industries, total..

Agriculture, forestry, and fisheries

Farms

Agricultural services, forestry, and fisheries.

Mining

Metal mining

Anthracite mining

Bituminous and other soft coal mining

Crude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction.

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill products

Apparel and other finished fabric productsLumber and furniture products

 !

Lumber and wood products, except

furniture.

Furniture and fixtures

Lumber and timber basic products

Furniture and finished lumber products.

Paper and allied products

Printing, publishing, and allied industries..

Chemicals and allied products 1

Products of petroleum and coal1

Rubber products

Leather and leather products

Stone, clay, and glass products

Metals, metal products, and miscellaneous *.

Primary metal industries

Fabricated metal products, including

ordnance.

Instruments

Miscellaneous manufacturing

Iron and steel and their products, including ordnance.

Nonferrous metals and their products...

Miscellaneous manufacturing

Machinery, except electrical*

Electrical machinery 1

Transportation equipment, except automobiles.

Automobiles and automobile equipment

Wholesale and retail trade_.

Wholesale trade

Retail trade and automobile services .

Transportation

Railroads

Local and highway passenger transportation

Highway freight transportation and warehousing.

Water transportation

Air transportation ("common carriers)-

Pipeline transportation

Services allied to transportation

Communications and public utilities

Telephone, telegraph, and related servicesRadio broadcasting and television

Utilities: electric and gas

Local utilities and public services, n. e. c. _.

Services

Hotels and other lodging places _

Personal services

Business services, n. e. c

Miscellaneous repair services and hand

trades.

Motion pictures

Amusement and recreation, except motion

pictures.

Engineering and other professional services,

n. e. c.

1946

270,898

1,208

1,150

58

4,123

641

440

1,580

995

467

4,220

136,906

28,321

2,640

10, 257

6,737

4,804

2,033

2,771

4,353

4,792

10,737

10,374

3,127

2,845

2,938

20,926

13, 717

4,315

2,894

9,117

5,488

2,855

6,595

95,736

51,408

44,328

13,786

8,612

1,556

1,542

921

516

190

449

8,118

2,583

343

5,058

134

6,801

1,233

1,151

1,461

130

574

429

1947

347,801

1,595

1,527

5,809

968

498

2,245

1,498

600

6,929

177,777

35, 705

2,869

11,631

7,779

6,540

3,114

3,426

5,690

5,672

13,487

14, 792

3,420

3,298

3,633

27,420

18, 778

5,337

3,305

13,145

8,214

2,999

11,483

122,185

65, 237

56, 948

16,717

9, 567

1,579

1,999

2,073

062

260

577

8,985

2,772

383

5,676

154

7,804

1,341

1,366

1, 751

213

1,942

609

582

1948

388,744

1,784

1,715

7,597

1,216

560

2,641

2,436

744

9,228

197,115

36, 627

3,029

12, 304

8,353

6,841

4,413

2,428

5,920

6,152

13,972

19, 411

3,323

3,137

4,079

33,165

16,835

9,577

1,909

4,844

14,858

8,703

3,722

13,519

136,199

72, 645

63, 554

18,372

10, 626

1,585

2,451

2,019

781

335

575

10,159

3,205

412

6,371

171

8,290

1,409

1,473

1,961

246

1,914

643

644

1949

370,079

1,825

1,769

56

6,565

927

409

1,875

2,602

752

9,740

184,479

35,091

3,114

10,691

7,749

6,164

3,893

2,271

5,372

6,315

13,050

17,560

3,022

2,901

3,927

29,397

14,472

8,635

1,829

4,461

13,451

8,095

3,804

14,776

130,981

67,196

63, 785

17,164

9,342

1,596

2,677

1,830

835

339

545

10,859

3,496

442

6,735

186

8,466

1,383

1,491

2,136

266

1,856

652

682

1950

431,857

1,985

1,910

75

8,257

1,250

476

2,355

3,313

863

11,358

216,819

37, 363

3,T07

13,030

8,296

8, 245

5,233

3,012

6,853

6,670

16,101

19,281

3,980

3,173

4,981

37,030

18,654

11,059

2,300

5,017

15,653

10,457

3,996

18,500

153,587

81,603

71,979

18,805

10,200

1,503

3,407

1,678

956

474

587

12,281

3,915

544

7,631

191

8,765

1, 373

1, 528

2,395

297

1,826

627

719

1951

488,446

2,323

2,234

89

9,316

1,503

485

2,484

3,838

1,006

14,010

251,227

42,657

3,395

14, 264

8,874

8,760

5,535

3,225

8,293

7,333

18,055

23,481

4,851

3,448

5,689

44,082

22,604

12,907

3,041

5,530

20,452

12, 223

5,944

19,426

166,751

90,869

75,882

21,326

11, 234

1,617

3,856

2,180

1,184

540

709

13,787

4,362

696

8,507

222

9,706

1,461

1, 689

2,799

408

1,804

663

1952

499,454

2,450

2,351

9,366

1,440

438

2,227

4,178

1,083

15,052

257,322

43,190

3,720

13,070

9,043

8,873

5,510

3,363

7,742

7,844

17, 724

23,904

4,867

3,314

5,547

42,329

20,207

13,045

3,557

5,520

22,069

14,815

9,509

19,762

167,207

88, 334

78,873

22,241

11, 536

1,633

4,193

2,173

1,354

568

784

15,214

4,829

780

9,365

240

10,602

1,503

1,674

3,269

424

1,945

111

1,010

1953

523,307

2,300

2,217

83

9,000

1,339

382

1,990

4,175

1,114

1954

516,502

2,176

2,095

81

8,239

1,385

336

1,614

3,746

1,158

15,959 17,215

276,835

42,915

3,771

12,540

8,894

8,600

5,251

3,349

8,250

8,418

18,440

25,650

4,972

3,226

6,444

48,002

23, 282

14,752

4,031

5,937

23,284

16, 724

11,952

24,753

168,611

85, 067

83, 544

22,947

11,608

1,775

4,664

2,158

1,402

509

831

16,642

5,317

845

10, 213

267

11,013

1,609

1,846

3,392

486

1,850

783

1,047

266,073

43,848

3,675

11,729

8,857

8,559

5,129

3,430

8,448

18,696

27,509

4,560

3,055

6,554

43,549

19,636

14,112

3,848

5,953

21,198

15,805

11,122

20,213

171,637

86, 778

84, 859

21,273

10,178

1,529

4,697

1,844

1,568

545

912

18,411

5,909

1,001

11, 246

255

11,478

1,639

1,845

3,633

466

2,049

839

1,007

1955

599,390

2,476

2,373

103

9,459

1,797

283

1,964

4,021

1,394

19,742

303,573

44,63S

3,870

13,618

10,022

10,517

6,343

4,174

9,836

9,827

21,422

30,831

5,776

3,406

7,879

53,126

25,985

15,936

4,345

6,860

22,924

17,251

11,667

26,963

205,957

103,686

102, 271

24,299

11,125

1,629

5,902

2,217

1,774

560

1,092

20,732

6, 558

1,364

12,519

291

13,152

1,795

2,099

4,229

573

2, 273

943

1,240

1956

643,415

2,650

n. a.

n. a.

10,677

n. a.

n. a.

n. a.

n. a.

n. a.

21,916

323,715

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

221,192

n. a.

n. a.

25,686

n. a.

n . 2k.

n. a.

n. a.

n. a.

n. a.

n. a.

22,640

n. a.

n. a.

n. a.

n. a.

14,939

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1957

667,251

2,839

n. a.

n. a.

10, 607

n. a.

n. a.

n. a.

n. a.

n. a.

23,388

337,558

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

226,601

n. a.

n. a.

26,767

n. a.

n. a

n. a.

n. a.

n. a.

n. a.

n. a.

24,313

n. a.

n. a.

n. a.

n. a.

15,178

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

Line

n. a.—Not available. n. e. c. Not elsewhere classified.

1. Owing to changes in the industrial classification of the underlying data, figures for 1948

and subsequent years in this and a number of other industries are not strictly comparable

with those shown here for 1946 and 1947 or with the values for earlier years in the 1954 National Income supplement. Estimates for 1948 corporate sales comparable to those shown

for 1947 are as follows: Lumber and furniture products, $7,228; Chemicals and allied products,

$14,413; Products of petroleum and coal, $19,495; Metals, metal products, and miscellaneous,

$30,998; Machinery, except electrical, $14,994; and Electrical machinery, $8,918.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
216 NATIONAL INCOME AND PRODUCT TABLES

Table VI-18.—'Corporate Depreciation Charges, by Industry, 1946-57

[Millions of dollars]

Line

70

73

All industries, total.

Agriculture, forestry, and fisheries.

Farms.

Agricultural services, forestry, and fisheries.

Mining

Metal mining

Anthracite mining

Bituminous and other soft coal mining

Crude petroleum and natural gas

Nonmetallic mining and quarrying

Contract construction.

Manufacturing

Food and kindred products

Tobacco manufactures

Textile-mill products.

Apparel and other finished fabric products..

Lumber and furniture products i

Lumber and wood products, except furniture.

Furniture and fixtures.

Lumber and timber basic products

Furniture and finished lumber products.

Paper and allied products

Printing, publishing, and allied industries...

Chemicals and allied products i

Products of petroleum and coal i

Rubber products

Leather and leather products

Stone, clay, and glass products

Metals, metal products, and miscellaneous i.

Primary metal industries

Fabricated metal products, including

ordnance.

Instruments

Miscellaneous manufacturing

Iron and steel and their products, including ordnance.

Nonferrous metals and their products...

Miscellaneous manufacturing

Machinery, except electrical1

Electrical machinery i

Transportation equipment, except automobiles.

Automobiles and automobile equipment .. .

Wholesale and retail trade

Wholesale trade...

Retail trade and automobile services..

Finance, insurance, and real estate

Banking

Security and commodity brokers, dealers

and exchanges.

Finance, n. e. c

Insurance carriers

Insurance agents and combination offices—.

Real estate—

Transportation __

Railroads.. __

Local and highway passenger transportation.

Local railways and buslines

Highway passenger transportation,

n. e. c.

Highway freight transportation and warehousing.

Water transportation

Air transportation (common carriers) _

Pipeline transportation

Services allied to transportation

Communications and public utilities

Telephone, telegraph, and related services _

Rad io broadcasting and television

Utilities: electric and pas

Local utilities and public services, n. e. c__.

Services.,

Hotels and other lodging places.

Personal services

Business services, n. e. c

Miscellaneous repair services and hand

trades.

Motion pictures _.

Amusement and recreation, except motion

pictures.

Engineering and other professional services,

n. e. c.

1946

4,267

32

30

2

159

18

8

44

72

17

53

1,946

223

7

102

21

63

37

26

77

48

180

373

36

13

58

281

54

34

143

76

34

120

357

102

255

373

48

1

22

16

2

284

459

207

86

11

45

55

34

44

19

14

729

248

6

462

13

159

55

24

19

1947

5,280

40

38

2

197

20

9

51

94

23

2,376

276

8

122

28

87

60

222

422

48

17

72

446

334

46

186

102

41

150

156

364

399

54

2

19

17

3

304

670

327

102

40

62

SO

26

16

790

275

8

493

14

200

62

33

29

12

1948

6,340

49

47

2

262

30

11

68

122

31

128

2,818

331

10

147

35

101

78

23

108

75

274

464

54

20

92

543

319

131

30

63

224

120

49

173

692

218

474

456

63

2

19

24

4

345

793

367

119

30

104

70

82

30

21

886

320

12

538

16

252

74

43

43

12

1949

7,223

60

57

3

306

31

11

72

155

37

157

3,172

376

11

170

39

112

26

126

89

324

525

58

21

104

581

339

142

34

257

134

52

190

821

264

557

564

73

859

381

130

38

92

124

83

33

23

975

332

19

606

18

310

81

50

53

1950

7,904

65

363

34

11

83

193

40

181

6,444

407

12

186

41

123

93

30

140

100

361

545

59

22

118

633

377

153

37

286

148

56

208

919

300

619

592

81

2

27

37

6

441

402

116

32

84

147

84

46

22

1,118

384

22

692

19

319

86

53

64

1951

9,129

75

72

3

412

41

12

85

228

46

214

3,998

454

13

206

46

147

113

34

163

114

421

615

66

24

138

771

455

186

54

76

337

176

71

236

1,033

347

686

678

31

51

26

479

1,124

540

125

33

92

184

99

90

52

34

1,231

408

25

777

21

365

92

60

87

17

1952

10,423

85

82

3

450

40

12

86

257

54

239

4,710

486

14

218

48

162

124

189

122

536

690

74

25

166

622

216

401

214

280

1,127

376

752

734

101

3

28

61

53

488

1,301

684

126

34

92

198

101

98

58

36

441

28

876

23

409

96

63

118

17

1953

12,029

89

85

4

462

47

10

85

260

59

257

5,629

501

15

238

52

170

130

40

218

134

654

801

87

26

204

1,317

902

248

74

93

462

262

123

366

1,230

405

825

868

120

3

43

72

10

620

1,517

793

133

40

93

222

113

139

68

49

1,553

482

32

1.014

25

425

103

70

109

19

13,694

91

4

499

68

11

87

265

297

6,510

548

17

255

57

180

133

47

256

147

770

985

99

26

224

1,517

1,056

275

83

103

535

301

140

453

1,354

448

906

983

136

4

47

82

12

702

1,611

832

116

28

88

116

168

73

57

1,866

528

46

1,267

25

479

117

69

123

11

94

45

20

15,928

113

107

628

121

10

94

316

87

367

7,499

622

20

285

64

212

160

52

318

173

899

1,155

117

29

264

1,695

1,156

315

101

123

620

351

161

514

1,638

566

1,073

1,044

154

4

41

39

20

788

1,858

959

136

34

102

311

129

174

80

70

2,202

578

63

1,528

32

577

134

81

153

12

118

55

25

1956

17,890

119

n. a.

n. a.

709

n. a.

n. a.

n. a.

n. a.

n. a.

419

8,372

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,998

n. a.

n. a.

1,173

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,924

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

2,486

n. a.

n. a.

n. a.

n. a.

690

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1957

20,005

125

n. a.

n. a.

790

n. a.

n. a.

n. a.

n. a.

n. a.

470

9,300

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

2,430

n. a.

n. a.

1,300

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

1,990

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

2,780

n. a.

n. a.

n. a.

n. a.

820

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.

n. a.—Not available. n. e. c—Not elsewhere classified.

1. Estimates for 1948 and subsequent years are not strictly comparable with those for earlier years. See table VI-17, footnote 1.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
INCOME AND EMPLOYMENT BY INDUSTRY 217

Table VI-19.—Noncorporate Depreciation Charges, by Industry Division, 1946-57

[Millions of dollars]

Line

1

9

3

4

5

0

8

9

10

11

12

13

14

15

16

17

All industries, total

Agriculture, forestry, and fisheries

Farms *

Agricultural services, forestry, and fisheriesMininGj . . . . . . .

Contract construction

M anuf ac tur ing

Wholesale and retail trade

Wholesale trade

Retail trade and automobile services.

Finance, insurance, and real estate

Real estate

Other

Transportation, communications, and public

utilities.

Services

Nonprofit institutions - . .

Other

1946

4,774

1,043

1,028

15

70

104

182

563

109

454

2, 158

2,129

29

141

513

209

304

1947

5,782

1,369

1, 351

18

91

165

220

789

153

636

2,243

2,218

25

220

685

217

468

1948

6,761

1,797

1,774

23

97

214

243

920

242

678

2,429

2, 396

33

230

831

226

605

1949

7,868

2, 200

2,170

30

113

269

288

1, 146

201

945

2, 629

2, 584

45

261

962

250

712

1950

8,596

2,472

2,438

34

115

314

?99

1,230

232

998

2,880

2,82S

52

262

1,024

279

745

1951

9,624

2,868

2,827

41

127

359

338

1,343

298

1,045

3, 181

3,117

64

285

1, 123

312

811

1952

10,449

3,115

3,071

44

129

402

350

1,521

293

1,228

3,408

3,337

71

286

1,238

372

866

1953

11,037

3,223

3,174

49

134

433

364

1, 623

309

1,314

3, 683

3,605

78

291

1,286

408

878

1954

11,508

3, 245

3,201

44

141

461

347

1, 530

276

1,254

3, 993

3,911

82

284

1, 507

429

1,078

1955

12,015

3, 302

3,263

39

171

538

385

1,476

313

1,163

4, 377

4,276

101

313

1,453

450

1,003

1956

12,865

3,433

3,394

39

207

608

384

1,599

355

1,244

4, 760

4,639

121

339

1,535'

475

1,060

1957

13,699

3, 551

3,511

40

250

650

385

J, 730

n. a.

n. a.

5,138

4,997

141

375

1,620

500

1,120

Line

I

2

3

4

5

6

7

8

Q

10

11

12

13

14

15

16

17

n. a. Xot available.

1. See footnote 3 to table V-9.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Digitized for FRASER 

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Federal Reserve Bank of St. Louis
VII. Supplementary Tables

PAGE

VII-1. Gross National Product: Receipts and Expenditures by Major Economic

groups, 1946-57 220

VII-2. Implicit Price Deflators for Gross National Product or Expenditure,

1929-57 (41) 220

VII-3. Implicit Price Deflators for Seasonally Adjusted Quarterly Gross National

Product or Expenditure, 1947—57 222

VI1-4. Implicit Price Deflators for Gross National Product by Major Type of

Product, 1929-57 ' 222

VII-5. Gross National Product by Major Type of Product and Purchaser. 1929

and 1947-57 224

VI1-6. Gross National Product by Major Type of Product and Purchaser, in

Constant Dollars, 1929 and 1947-57 224

VI1-7. Implicit Price Deflators for Gross National Product by Major Type of

Product and Purchaser, 1929 and 1947-57 225

VI1-8. Implicit Price Deflators for Gross National Product by Legal Form of

Organization, 1929-57 ' 226

VII-9. Income and Gross Product Originating in Farming, 1929-57 226

VII-10. Farm Gross Product, in Constant Dollars, 1929-57 226

VII-11. Implicit Price Deflators for Farm Gross Product, 1929-57 226

VII-12. Revised Farm Series, 1929-45 228

VII-13. Implicit Price Deflators for Personal Consumption Expenditures, by

Major Type, 1946-57 228

VII-14. Implicit Price Deflators for New Construction Activity, 1946-57 228

VII-15. Implicit Price Deflators for Producers' Durable Equipment, 1946-54 229

VII-16. Monetary and Imputed Interest, 1946-57 (37) 229

VII-17. Major Items of Personal Income and Personal Consumption Expenditures

in Kind, 1946-57 (39) 229

VII-18. Corporate Profits and Inventory Valuation Adjustment, Quarterly,

1946-57 (42) 230

VII-19. Relation of Corporate Profits, Taxes, and Dividends to Corresponding

Totals as Tabulated by Internal Revenue Service, 1946-55 (38) 230

•Figures in parentheses refer to corresponding tables in the 1954 National Income supplement.

466759 0—59 -15

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Federal Reserve Bank of St. Louis
220 NATIONAL INCOME AND PRODUCT TABLES

Table VII—1.—Gross National Product: Receipts and Expenditures by Major Economic Groups, 1946-50

[Billions of dollars]

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

Persons:

Disposable personal income

Personal consumption expenditures

Personal saving . - -

Business:

Gross retained earnings

 l

 . Gross private domestic investment

Excess of investment (—) _ -

Government:

Tax and nontax receipts or accruals.

Less: Transfers, etc.2 - . . .

Net receipts

Purchases of goods and services

Surplus or deficit (—) on income

and product account.

Foreign:

Net transfer payments by Government.

Net exports . .

Net foreign investment

Statistical discrepancy - . .

Gross national product

1946

Receipts

160 6

13.1

51.1

16.5

34 6

. 3

2.1

210.7

Expenditures

147.1

28 1

30.5

4.9

210.7

Excess of

receipts

or expenditures (—)

13.5

-15. 1

4. 1

—4 6

2.1

1947

Receipts

170 1

18.9

57 1

15.4

41 6

. 1

3.5

234.3

Expenditures

165.4

31.5

28.4

9.0

234.3

Excess of

receipts

or expenditures (—)

4.7

-12.6

13.3

-8. 9

3.5

1948

Receipts

189 3

26.6

59 2

16.5

42 8

1 6

- . 8

259.4

Expenditures

178.3

43 1

34.5

3.5

259.4

Excess of

receipts

or expenditures (—)

11.0

-16.5

8.2

— 1 9

- . 8

1949

Receipts

189 7

27.6

56.4

19.4

37 0

3 2

.5

258.1

Expenditures

181 2

33 0

40.2

3.8

258.1

Excess of

receipts

or expenditures (—)

8.5

-5. 4

-3. 1

- . 5

.5

1950

Receipts

207.7

27.7

69 3

22.1

47 2

2.8

j

284.6

Expenditures

195 0

50 0

39.0

.6

284.6

Excess of

receipts

or expenditures (—)

12.6

-22. 3

8.2

2.2

- . 7

1. Includes undistributed corporate profits, corporate inventory valuation adjustment,

capital consumption allowances, and excess of wage accruals over disbursements.

2. Includes government transfer payments to persons, net foreign transfer payments, net

interest paid by government, and subsidies minus current surplus of government enterprises.

Table VII—2.—Implicit Price Deflators for Gross National Product or Expenditure, 1929—40

[Index numbers, 1954=100]

Line

1

2

3

4

5

Gross national product

Personal consumption expenditures

Durabl e goods. __..

Nondurabl e goods

Services

Gross private domestic investment.

New construction

Residential nonfarm.

Other

Producers' durable equipment..

Change in business inventories..

Net exports of goods and services. _ _

Exports..

Imports.

Government purchases of goods and services _

Federal

State and local.

1929

57.4

61.6

62.0

57.7

66.8

41.7

41.8

41.6

52.5

63.1

57.3

45.8

44.5

46.1

1930

55.4

59.0

60.5

54.8

64.2

40.0

40.8

39.7

50.5

55.0

48.9

44.9

41.8

45.5

1931

49.9

52.6

53. 5

46.9

60.3

36.5

37. I

36.2

47.9

43.2

39.7

42.7

41.7

43.0

1932

44.9

46.5

47.0

40.0

55.3

31.1

30.1

31.7

45.5

36.2

32.3

39.4

38.2

39.7

1933

44.2

44.8

46.1

40.3

50.7

31.2

29.8

31.9

43.1

35.2

29.3

40.3

38.3

41.1

1934

46.9

47.6

48.8

45.3

50.7

33.3

33.1

33.4

45.9

43.0

33.8

42.9

43.2

42.8

1935

47.4

48.6

47.9

47.2

50.9

34.1

32.6

35.4

45.6

44.7

36.0

43.4

43.7

43.3

1936

47.7

49.1

47.9

47.4

51.9

34.8

34.3

35.2

45.4

46.0

36.9

44.0

46.9

42.2

1937

49.5

50.9

50.3

49.1

53.8

39.0

37.8

39.9

48.9

41.1

45.1

47.3

43.8

48.7

49.8

50.8

46.7

54.5

39.1

39.2

39.1

50.2

46.5

38.0

44.5

46.1

43.4

1939

48.1

49.2

50.2

45.8

54.5

39.0

39.5

38.4

46.9

38.6

44.2

46.8

42.7

1940

48.9

49.7

50.7

46.4

54.8

40.1

40.9

39.1

50.6

51.2

40.9

45.2

47.0

43.9

Digitized for FRASER 

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SUPPLEMENTARY TABLES 221

Table VII-1.—Gross National Product: Receipts and Expenditures by Major Economic Groups, 1951-57

[Billions of dollars]

1951

Receipts

227.5

31.5

85.5

18.9

66.6

2.1

1.2

329.0

Expenditures

209.8

56.3

60 5

2.4

329.0

Excess

of receipts or

expenditures

(-)

17 7

—24 8

6 1

- . 2

1.2

1952

Receipts

238.7

33.2

90.6

18.4

72.2

1.5

1.4

347.0

Expenditures

219.8

49.9

76.0

1.3

347.0

Excess

of receipts or

expenditures

(-)

18.9

-16. 6

—3 9

2

1.4

1953

Receipts

252.5

34.3

94.9

19 2

75.7

1.6

1.3

365.4.

Expenditures

232.6

50.3

82.8

- . 4

365.4

Excess

of receipts or

expenditures

(-)

19 8

— 16 0

—7 1

2 0

1 3

1954

Receipts

256.9

35.5

90.0

21.5

68.5

1.4

.9

363.1

Expenditures

238.0

48.9

75 3

1.0

363.1

Excess

of receipts or

expenditures

(-)

18 9

— 13 4

-6. 7

4

. 9

1955

Receipts

274.4

42 1

101 4

23.0

78.4

1.5

1.0

397.5

Expenditures

256. 9

63.8

75 6

1.1

397.5

Excess

of receipts or

expenditures

(-)

17.5

- 2 1 8

2 9

4

1.0

1956

Receipts

Expenditures

290.5

43.2

110.4

25.3

85.1

1.4

- . 9

419.2

269.4

68.2

78.8

2.8

419.2

Excess

of receipts or

expenditures

(-)

21.1

—25 0

6 3

— 1 4

Q

1957

Receipts

305.1

45.6

116.2

28.8

87.4

1.5

.7

440.3

Expenditures

284.4

65.3

85 7

4.9

440.3

Excess

of receipts or

expenditures

(-)

20.7

-19. 7

1.7

-3. 5

.7

Line

1

2

3

4

5

6

8

9

10

11

12

13

14

15

16

Table VII-2.—Implicit Price Deflators for Gross National Product or Expenditure, 1941-57

[Index numbers, 1954=100]

1941

52.9

53.1

54.8

50.5

56.8

43.4

44.6

42.2

54.0

56.1

43.0

51.9

55.1

46.2

1942

59.6

59.5

64.2

58.8

59.8

47.6

47.7

47.6

58.5

64.9

48.9

59.6

61.4

49.8

1943

64.9

65.0

70.3

65.8

62.8

53.0

51.4

54.0

58.4

68.1

51.3

64.3

65.6

52.7

1944

66.5

68.6

78.7

69.5

65.5

56.3

56.2

56.3

59.3

73.3

53.3

63.4

64.3

54.6

1945

68.0

71.0

82.8

72.2

67.1

57.8

60.0

56.9

60.0

75.3

57.4

63.2

63.9

57.4

1946

74.6

76.5

82.0

78.8

71.1

63.7

65.3

62.6

66.7

80.8

65.5

69.4

73.0

63.0

1947

83.0

84.6

88.4

88.7

76.8

76.6

78.4

74.8

76.8

93.4

79.7

76.4

80.8

71.5

1948

88.5

89.5

92.4

94.0

81.7

85.9

88.6

83.1

83.1

98.6

86.3

82.0

84.4

79.3

1949

88.2

88.7

93.5

90.9

83.6

84,3

85.9

82.6

87.0

92.7

82.0

85.1

88.0

81.7

1950

89.5

89.9

94.6

91.4

85.9

88.3

90.9

85.1

89.0

90.3

87.8

86.5

89.6

83.7

1951

96.2

96.0

101.1

99.0

89.8

95.3

97.5

93.1

96.8

103.3

102.8

95.5

98.7

90.2

1952

98.1

98.0

102.2

100.1

93.6

98.4

100.3

96.5

97.5

103.0

102.8

97.8

99.2

94.8

1953

99.0

99.0

99.4

99.7

97.7

100.1

101.3

98.9

99.0

101.0

98.2

98.3

98.6

97.5

1954

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

1955

101.2

100.4

100.1

99.5

101.7

103.1

103.0

103.2

102.6

100.7

99.9

103.3

104.1

102.2

1956

104.2

102.2

101.3

100.9

104.2

109.0

108.1

109.8

109.0

103.4

101.9

108.1

108.8

107.2

1957

108.2

105.2

104.7

104.0

107.1

112.9

110.1

115.5

115.8

106.7

102.8

114.2

115.6

112.4

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
222 NATIONAL INCOME AND PRODUCT TABLES

Table VII-3.—Implicit Price Deflators for Seasonally Adjusted Quarterly Gross National Product or Expenditure, 1947-48

[Index numbers, 1954=100]

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Gross national product - -

Personal consumption expenditures

Durable goods

Nondurable goods _ _ _

Services

Gross private domestic investment _ -

N e w constructio n

Residentia l nonfar m

Othe r

Producers' durabl e equipmen t

Chang e i n business inventorie s - _ _____ _ ___ _

N e t exports of goods and services .. .

Government purchases of goods and services

Federa l

Stat e an d loca l . - __.- . - . _ .

I

81.2

82.8

87.7

86.6

75.2

72.0

72.9

71.2

74.9

75.7

81.1

69.9

II

82.0

83.6

87.9

87.4

76.0

73.2

77.0

74.2

76.2

75.8

80.9

69.3

1947

I II

83.3

84.9

88.6

89.0

77.3

77.6

79.2

76.1

77.5

75.9

79.5

72.3

IV

85.3

86.9

89.4

91.8

78.5

80.3

82.8

77.6

78.6

78.1

81.9

74.6

Year

83.0

84.6

88.4

88.7

76.8

76.6

78.4

74.8

76.8

76.4

80.8

71.5

1948

I

87.1

88.2

90.1

93.1

79.9

83.3

85.4

81.2

80.1

79.7

83.1

76.3

II

87.9

89.2

91.0

94.1

81.2

85.4

87.9

82 7

81.1

80.7

83.4

77.6

I II

89.3

90.4

93.6

94.9

82.4

87.3

90.4

84.2

84.7

82.8

84.6

80.7

IV

89.5

90.2

94.9

93.8

83.1

87.3

90.9

84 0

86.6

84.7

86.5

82.4

Year

88.5

89.5

92.4

94.0

81.7

85.9

88.6

83 1

83.1

82.0

84.4

79.3

Table VII-3.—Implicit Price Deflators for Seasonally Adjusted Quarterly Gross National Product or Expenditure, 1953-54

[Index numbers, 1954=100]

Line

Gross national product

Personal consumption expenditures.

Durable goods

Nondurable goods..

Services

Gross private domestic investmentNew construction

Residential nonfarm..

Other

Producers' durable equipment

Change in business inventories

Net exports of goods and services

Government purchases of goods and services..

Federal

State and lGcal

1953

98.8

98.7

100. 5

100.0

96.2

99.1

100.7

97.6

97.8

98.6

99.3

97.2

II

98.7

99.8

99.5

97.2

100.6

101.3

99.8

99.3

97.9

97.0

I II

99.2

99.2

99.8

99.7

98.3

100.4

101.8

99.1

100.1

97.9

98.2

97.5

IV

99.2

99.2

97.4

99.7

99.3

100.2

101.3

99.1

99.0

98.4

98.7

98.1

Year

99.0

99.0

99.4

99.7

97.7

100.1

101.3

98.9

99.0

98.3

98.6

97.5

1954

99.9

100.1

100.1

100. 5

99.6

99.7

100.5

99.0

99.1

99.5

98.5

II

99.8

100.0

100.1

100.2

99.9

99.3

100.6

100.0

98.9

98.7

99.5

I II

100.0

99.9

99.7

99.8

100.1

100.0

99.9

100.1

100.1

100.6

100.8

100.5

IV

100.2

100.0

100.1

99.6

100.5

100.3

100.3

100. 3

100.1

101.2

101.1

101.4

Year

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Table VII-4.—Implicit Price Deflators for Gross National Product by Major Type of Product, 1929-40

[Index numbers, 1954=100]

Line

Gross national productGoods output

Durable goods output

Nondurable goods output

Services

Construction

1929

57.4

59.0

58.9

59.0

61.3

42.9

1930

55.4

56.4

57.9

56.0

58.9

41.6

1931

49.9

48.1

53.1

47.0

55.8

37.9

1932

44.9

41.6

49.7

40.6

51.7

31.8

1933

44.2

42.5

48.0

41.4

47.8

33.6

1934

46.9

47.4

49.3

46.9

48.0

36.2

1935

47.4

48.4

48.8

48.3

48.1

35.9

1936

47.7

48.6

48.2

48.8

49.0

36.6

1937

49.5

50.3

50.6

50.2

50.6

39.9

1938

48.7

48.4

52.1

47.4

51.2

39.7

1939

48.1

47.9

51.3

46.7

51.0

39.2

1940

48.9

48.9

52.3

47.5

51.3

40.4

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
SUPPLEMENTARY TABLES

Table VII-3.—Implicit Price Deflators for Seasonally Adjusted Quarterly Gross National Product or Expenditure, 1949-52

[Index numbers, 1954=100]

223

1949

I

89.1

89.5

94.6

92.4

83.5

86.5

89.2

84.1

87.2

85.2

87.7

82.1

II

88.3

88.9

94.3

91.2

83.5

85.0

86.7

83.5

87.6

84.2

86.5

81.3

I II

87.6

88.1

92.7

90.2

83.4

82.5

83.5

81.4

86.8

84.8

87.2

81.9

IV

87.7

88.1

92.5

89.7

84.0

83.3

84.9

81.4

86.3

86.3

90.7

81.5

Year

88.2

88.7

93.5

90.9

83.6

84.3

85.9

82.6

87.0

85.1

88.0

81.7

1950

I

87.8

88.1

92.5

89.2

84.8

85.4

87.0

83.4

86.3

85.9

90.5

81.9

II

87.9

88.7

93.5

89.7

85.2

86.7

89.5

83.0

87.1

84.0

86.2

82.2

I II

90.1

90.6

95.0

92.3

86.1

90.4

92.9

86.9

89.3

86.4

89.1

84.0

IV

91.8

92.2

96.9

94.3

87.3

90.5

93.5

86.8

92.6

89.1

91.9

86.2

Year

89.5

89.9

94.6

91.4

85.9

88.3

90.9

85.1

89.0

86.5

89.6

83.7

1951

I

95.1

95.2

100.0

98.4

88.4

93.2

95.5

90.5

% . 2

94.3

99.3

88.;

II

96.0

95.8

100.7

99.1

89.4

95.4

97.2

93.6

96.9

94.5

97.3

89.7

I II

96.4

96.0

101.5

98.8

90.1

95.7

97.9

93.8

96.9

96.0

98.6

90.9

IV

97.5

97.1

102.3

100.0

91.1

97.0

99.7

94.5

97.1

97.2

99.5

92.1

Year

96.2

96.0

101.1

99.0

89.8

95.3

97.5

93.1

96.8

95.5

98.7

90.2

1952

I

97.6

97.5

102.7

100.1

92.2

98.0

100.4

95.8

97.5

96.8

98.8

93.1

II

97.7

97.8

102.6

99.8

93.1

98.5

100.3

96.8

97.9

96.6

97.8

94.3

I II

98.4

98.1

101.9

100.1

94.0

98.6

100.5

96.8

97.2

98.2

99.5

95.8

IV

99.0

98.7

101.7

100.5

95.0

98.4

100.1

96.6

97.4

99.3

100.8

96.1

Year

98.1

98.0

102.2

100.1

93.6

98.4

100.3

96.5

97.5

97.8

99.2

94.8

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Table VII-3.—Implicit Price Deflators for Seasonally Adjusted Quarterly Gross National Product or Expenditure, 1955-57

[Index numbers, 1954=100]

I

100.5

100.3

101.0

99.6

100.8

101. 1

101.1

101.1

101.1

101.5

101.9

101.1

II

100.9

100.2

100.1

99.5

101.3

102.7

102.4

103.0

101.8

102.4

103.1

101.4

1955

I II

101.5

100.4

99.8

99.5

101.8

103.6

103.8

103.5

102.7

104.4

105.7

102.7

IV

101.9

100.6

99.6

99.4

102.6

105.0

104.9

105.1

104.4

104.9

105.8

103.7

Year

101.2

100.4

100.1

99.5

101.7

103.1

103.0

103.2

102.6

103.3

104.1

102.2

I

102.8

101.0

99.7

99.7

103.2

106.1

106.0

106.3

106.0

106.4

107.7

104.7

II

103.6

101.7

100.6

100.4

103. 8

109.4

108.2

110.5

108.1

106.6

107.0

106.2

1956

III

104.8

102,. 7

101. 9

101.5

104.6

109.8

109.0

110.5

109.6

108.7

109.1

108.2

IV

105.7

103.3

103.0

102.0

105.2

110. 6

109.2

112.0

112. 2

110.4

111.2

109.4

Year

104.2

102.2

101.3

100.9

104.2

109.0

108.1

109.8

109.0

108.1

108.8

107.2

1957

I

107.0

104.2

103.8

103.0

106.1

110.6

109.1

111.9

114.2

112.2

113.1

110.9

II

107.8

104.9

104.7

103.6

106.6

113.2

110.0

115.9

115.3

113.4

114.4

111.9

I II

108.9

105.7

105.0

104.5

107.4

113.9

110.9

116.5

116.3

115.4

117.4

112.8

IV

109.4

106.2

105.3

104.8

108.4

114.2

110.7

117.5

117.4

115.8

117.4

113.8

Year

108.2

105.2

104.7

104.0

107.1

112.9

110.1

115.5

115.8

114.2

115.6

112.4

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Table VII-4.—Implicit Price Deflators for Gross National Product by Major Type of Product, 1941-57

[Index numbers, 1954=100]

1941

52.9

55.0

60.2

52.3

52.2

43.9

1942

59.6

64.4

71.6

60.6

54.8

50.7

1943

64.9

70.7

74.1

68.2

57.0

56.0

1944

66.5

71.1

70.8

71.3

60.1

55.7

1945

68.0

71.4

67.9

73.6

63.8

57.6

1946

74.6

78.4

74.9

80.1

70.3

64.3

1947

83.0

88.0

85.0

89.6

75.8

76.9

1948

88.5

93.6

89.9

95.4

80.4

86.2

1949

88.2

92.0

92.3

91.8

83.0

85.0

1950

89.5

92.1

93.0

91.6

85.5

88.1

1951

96.2

100.1

99.8

100.2

90.1

95.2

1952

98.1

100.7

100.7

100.7

93.7

98.8

1953

99.0

99.6

98.8

100.1

97.6

100.4

1954

100.0

100.0

100.0

100.0

100.0

100.0

1955

101.2

100.1

101.5

99.3

102.5

102.9

1956

104.2

102.5

105.5

100.5

105.6

108.9

1957

108.2

106.6

110.4

104.2

109.2

113.1

Line

1

2

3

4

5

6

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
224 NATIONAL INCOME AND PRODUCT TABLES

Table VII-5.—Gross National Product by Major Type of Product and Purchaser, 1929 and 1947-57

[Billions of dollars]

Line

9

10

11

12

13

14

15

16

17

18

19

Gross national product

Durable goods

Personal consumption expenditures -

Producers' durable equipment

Government purchases

Net exports

Change in business inventories

Nondurable goods

Personal consumption expendituresGovernment purchases

Net exports

Change in business inventories

Services -

Personal consumption expendituresGovernment purchases

Net exports-. - . .. . .

Construction

Private construction

Government construction

1929

104.4

18.1

9.2

5.8

.4

1.3

1.4

38.1

37.7

.6

-.4

.3

37.0

32. 1

5.0

-. 1

11.2

8.7

2.5

1947

234.3

47.4

20.6

16. 7

3. 1

5.7

1.4

96.4

93.4

2.2

2.6

-1.8

71.8

51.4

19. (5

.8

18.7

15. 3

3.4

1948

259.4

49.8

22.7

18.9

4.0

3.2

.9

107.2

98.7

4.5

.2

3.8

78.1

50. 9

21.2

.0

24.3

19.5

4.8

1949

258.1

47.9

24.6

17.2

5.1

3.0

- 2 . 1

101.5

96.6

5.4

.5

-1.0

83.5

60. 0

23. 3

.3

25.2

18.8

6.4

1950

284.6

60.7

30.4

18.9

5.5

2.0

4.0

102.9

99.8

1.9

-1.7

2.8

89.8

64.9

24.6

.3

31.2

24.2

7.0

1951

329.0

74.4

29.5

21.3

13.7

3.0

6.9

117.4

110.1

4.8

-.9

3.3

102.9

70.2

32.5

.3

34.2

24.8

9.4

1952

347.0

75.6

29.1

21.3

21.3

2.8

1.2

122.6

115.1

6.4

-.8

1.9

112.3

75.6

37.4

-.7

36.4

25.5

10.9

1953

365.4

79.8

32.9

22.3

21.1

2.6

.9

127.0

118.0

11. 1

-1.5

-.5

119.5

81.8

39.2

-1.5

39.0

27.6

11.4

1954

363.1

71.6

32.4

20.8

17.7

3.2

-2.5

125.9

119.3

6.6

-.9

.9

124.1

86.3

39.0

-1.3

41.6

29.7

11.9

1955

397.5

84.3

39.6

23.1

15.1

3.4

3.0

132.9

124.8

6.4

-1.0

2.7

133.4

92.5

42.1

-1.3

46.9

34.9

12.0

1956

419.2

89.1

38.4

27.0

16.3

4.1

3.3

137.8

131.4

4.3

.0

2.1

143.6

99.6

45.3

-1.4

48.7

35.7

13.0

1957

440.3

91.7

39.9

27.9

18.3

4.9

.8

142.9

138.0

4.0

.8

.2

154.8

106.5

49.1

-.8

50.8

36.5

14.4

Line

10

11

12

13

14

15

16

17

18

19

Table VII-6.—Gross National Product by Major Type of Product and Purchaser, in Constant Dollars, 1929 and 1947-57

[Billions of 1954 dollars]

Line

Gross national product

Durable goods

Personal consumption expenditures

Producers' durable equipment

Government purchases

Net exports

Change in business inventories

Nondurable goods

Personal consumption expenditures

Government purchases

Net exports

Change in business inventories

Services

Personal consumption expenditures

Government purchases

Net exports

Construction

Private construction

Government construction

1929

181.8

30.8

14.9

11.1

. 7

1.5

2.6

64.7

65.3

1.1

-2. 1

.4

60.3

48.0

11.5

26.1

20.9

5.2

1947

282.3

55.8

23.3

21.7

3.6

5.7

1.5

107.5

105.3

2.3

1.5

-1. 6

94.7

67.0

26.9

.8

24.3

19.9

4.4

1948

293.1

55.4

24.6

22.8

4.4

2.8

.8

112.3

105.1

4.8

-1. 0

3.5

97.2

69.6

27.4

.2

28.2

22.7

5.5

1949

292.7

51.9

26.3

19.8

5.3

2.8

-2. 4

110.5

106.3

6.0

- . 6

-1. 2

100.7

71.7

28.5

.4

29.7

22.3

7.3

1950

318.1

65.3

32. 1

21.3

5.6

2.1

4.3

112.3

109.2

2.4

-2. 2

2.9

105.0

75.5

29.1

.4

35.4

27.4

8.0

1951

341.8

74.6

29.2

22.0

13.3

3.0

7. 1

117.1

111.2

3.9

- . 6

2.6

114.2

78.2

36.2

- . 2

36.0

26.0

1952

353.5

75.1

28.5

21.8

20.9

2.7

1.2

121.8

115.0

6.2

- . 9

1.5

119.8

80.8

39.7

- . 6

36.9

26.0

10.9

1953

369.0

80.8

33.1

22.5

21.8

2.4

1.0

126.9

118.3

10.8

-1. 8

- . 5

122.5

83.7

40.4

-1. 6

38.8

27.6

11.2

1954

363.1

71.6

32.4

20.8

17.7

3.2

-2. 5

125.9

119.3

6.6

- . 9

.9

124.1

86.3

39.0

-1. 3

41.6

29.7

11.9

1955

392.7

83.1

39.6

22.5

14.7

3.4

3.0

133.8

125.4

6.4

-1. 1

3.1

130.2

9L0

40.4

-1. 3

45.6

33.9

11.7

1956

402.2

84.4

37.9

24.8

15.0

3.8

3.0

137.1

130.2

4.4

- . 2

2.6

136.0

95.6

41.6

-1. 2

44.8

32.8

12.0

1957

407.0

83.1

38.1

24.1

15.9

4.3

.7

137.2

132.7

3.4

141.8

99.4

43.1

45.0

32.3

12.6

Line

8

9

10

11

12

13

14

15

16

17

18

19

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPPLEMENTARY TABLES 225

Table VII-7.—Implicit Price Deflators for Gross National Product by Major Type of Product and Purchaser, 1929 and 1947-57

[Index numbers, 1954=100]

Line

Gross national product

Durable goods

Personal consumption expenditures.

Producers' durable equipment.

Government purchases

Nondurable goods

Personal consumption expenditures

Government purchases

Services

Personal consumption expenditures.

Government purchases

Construction

Private construction

Government construction

)47

83.0

85.0

88.4

76.8

86.4

89.6

88.7

96.4

75.8

76.8

73.0

76.9

76.6

78.4

1948

88.5

89.9

92.4

83. 1

90.4

95.4

94.0

94.2

80.4

81.7

77.5

86.2

85.9

87.6

88.2

92.3

93.5

87.0

95.2

91.8

90.9

90.2

83.0

83.6

81.6

85.0

84.3

87.2

1950

89.5

93.0

94.6

89.0

98.0

91.6

91.4

80.4

85.5

85.9

84.6

88.1

88.3

87.3

1951

96.2

99.8

101.1

96.8

103.1

100.2

99.0

123.8

90.1

89.8

89.7

95.2

95.3

95.0

1952

98.1

100.7

102.2

97.5

101.7

100.7

100.1

103.7

93.7

93.6

94.3

98.8

98.4

99.7

1953

99.0

98.8

99.4

99.0

96.9

too. i

99.7

iO2. 0

97.6

97.7

97.2

100.4

100. 1

101.3

1954

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0 1

100.0

100.0

955

101.2

101.5

100.1

102.6

102.8

99.3

99.5

100.8

102.5

101.7

104.2

102.9

103. 1

102.3

1956

104.2

105.5

101.3

109.0

108.6

100.5

100.9

96.1

105.6

104.2

109.0

108.9

109.0

108.7

1957

108.2

110.4

104.7

115.8

114.9

104.2

104.0

117.2

109.2

107. 1

113.9

113.1

112.9

113.5

7

8

9

10

11

12

13

14

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
226 NATIONAL INCOME AND PRODUCT TABLES

Table VII—8.—Imp licit Price Deflators for Gross National Product by Legal Form of Organization, 1929—40

[Index numbers, 1954=100]

Line

1

2

3

4

5

Gross national product _ -

Business - - - - --

General government

Households and institutions

Rest of the world

1929

57.4

59.4

42.0

43.0

1930

55.4

57.4

42.0

41.0

1931

49.9

51.4

42.4

36.9

1932

44.9

46.4

41.3

32.4

1933

44.2

45.8

40.7

29.7

1934

46.9

48.8

41.8

30.3

1935

47.4

49.2

41.7

31.2

1936

47.7

49.2

43.5

33.1

1937

49.5

50.9

43.9

35.6

1938

48.7

50.0

44.7

34.9

1939

48.1

49.3

44.2

35.5

1940

48.9

50.1

44.0

36.4

Table VII-9.—Income and Gross Product Originating in Farming, 1929-40

[Millions of dollars]

Line

Total value of farm output..

Cash receipts from farm marketings and CCC loans..

Farm products consumed directly in farm households.

Net change in farm inventories

Gross rental value of farm homes

Less: Value of intermediate products consumed, total

Intermediate products consumed, other than rents...

Gross rents paid to nonfarm landlords (excluding

operating expenses).

Plus: Other items

Equals: Farm gross product_

Less: Capital consumption allowances

Depreciation charges

 l

 •

Capital outlays charged to current expense.

Indirect business taxes

Plus: Government payments to farm landlords

Equals: National income originating in fanning

1929

13,670

11,299

1,704

-162

829

3,824

2,912

912

- 2 9

9,817

1,209

1,148

61

525

0

8,083

1930

11,120

9.050

1,540

-300

830

3, 323

2,583

740

- 6 4

7,733

1,170

1,109

61

519

0

6,044

1931

8,702

6, 369

1,255

324

754

2. 429

1,924

505

- 8 1

6,192

998

944

54

467

0

4,727

1932

6,434

4,735

1,010

34

655

1,913

1, 532

381

- 7 3

4,448

846

799

47

403

0

3,199

1933

6,660

5,308

1,024

-259

587

2,032

1,594

438

- 4 0

4,588

760

718

42

351

113

3,590

1934

6,699

6,314

1,090

-1,320

615

2,325

1,821

504

- 4 3

4,331

784

741

43

341

397

3,603

1935

9,548

7, 074

1,317

536

621

2, 596

2, 008

588

6,944

827

781

46

347

6,268

1936

9,237

8,356

1,373

-1,112

620

2,971

2.302

669

- 3

6,263

883

835

48

356

242

5,266

1937

11,372

8,819

1,394

523

636

3, 265

2,618

647

- 1 8

8,089

974

925

49

369

283

7,029

1938

9,694

7,703

1,266

103

622

2,939

2,367

572

- 2 9

6,726

996

945

51

366

377

5,741

1939

9,719

7,819

1,224

56

620

3,206

2,608

- 1 5

6,498

1,025

975

50

373

661

5,761

1940

10,466

8,332

1,239

270

625

3,621

3,013

608

- 2

6,843

1,025

976

49

372

627

6,073

1. See footnote 3 to table V-9.

Table VII-10.—Farm Gross Product, in Constant Dollars, 1929-40

[Millions of 1954 dollars]

Line

10

Total value of farm output

Cash receipts from farm marketings and CCC loans.

Farm products consumed directly in farm households

Net change in farm inventories

Gross rental value of farm homes

Less: Value of intermediate products consumed, total

Intermediate products consumed, other than rents._.

Gross rents paid to nonfarm landlords (excluding

operating expenses).

Plus: Other items

Equals: Farm gross product

1929

22,793

19,189

2,614

-257

1,247

6,265

4,511

1,754

- 4 9

16,479

1930

21,385

17, 960

2,595

-418

1,248

6,184

4,397

1,787

-125

15,076

1931

23,792

18,080

2,738

1,742

1,232

5,932

4,075

1,857

-231

17,629

1932

22,638

17,895

2,843

694

1,206

1933

-271

16,559

22,324

18,841

2,986

-684

1,181

5,808 5,833

3,903 I 4,135

1,905

 ! 1,698

-142

16,349

1934

18,925

18,043

2,784

-3,071

1,169

5,254

3,935

1,319

-134

13,537

1935

21,909

16, 341

2,676

1, 736

1,156

5,388

3,985

1,403

- 1 9

16,502

1936

20,290

18, 433

2,687

-1,980

1,150

6,175

4,593

1,582

- 7

14,108

1937

23,777

18,159

2,641

1,827

1,150

6,097

4,712

1,385

- 3 9

17,641

1938

24,340

19,977

2,790

417

1,156

6,466

4,727

1,739

- 7 7

17,797

1939

24,964

20, 572

2,852

372

1,168

7,152

5,306

1,846

- 4 1

17,771

1940

25,211

20,635

2,762

635

1,179

7,738

6, 011

1,727

- 5

17,468

Table VII-11.—Implicit Price Deflators for Farm Gross Product, 1929-40

[Index numbers, 1954=100]

Line

1

2

3

4

5

6

7

8

9

10

Total value of farm output

Cash receipts from farm marketings and CCC loans. -

Farm products consumed directly in farm households.

Net change in farm inventories

Gross rental value of farm homes

Less: Value of intermediate products consumed, totaL . . ...

Intermediate products consumed, other than rents..„

Gross rents paid to nonfarm landlords (excluding

operating expenses).

Plus: Other items..

Equals: Farm gross product

1929

60.0

58.9

65.2

66.5

61.0

64.6

52.0

59.6

59.6

1930

52.0

50.4

59.3

66.5

53.7

58.7

41.4

51.3

51.3

1931

36.6

35.2

45.8

61.2

40.9

47.2

27.2

35.1

35.1

1932

28.4

26.5

35.5

54.3

32.9

39.3

20.0

26.9

26.9

1933

29.8

28.2

34.3

49.7

34.8

38.5

25.8

28.1

28.1

1934

35.4

35.0

39.2

52.6

44.3

46.3

38.2

32.0

32.0

1935

43.6

43.3

49.2

53.7

48.2

50.4

41.9

42.1

42.1

1936

45.5

45.3

51.1

53.9

48.1

50.1

42.3

44.4

44.4

1937

47.8

48 6

52.8

55.3

53.6

55.6

46.7

45.9

45.9

1938

39.8

38.6

45.4

53.8

45.5

50.1

32.9

37.8

37.8

1939

38.9

38.0

42.9

53.1

44.8

49.2

32.4

36.6

36.6

1940

41.5

40.4

44.9

53.0

46.8

50.1

35.2

39.2

39.2

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPPLEMENTARY TABLES 22 7

Table VII-8.—Implicit Price Deflators for Gross National Product by Legal Form of Organization, 1941-57

[Index numbers, 1954=100]

1941

52.9

54.6

42.7

38.7

1942

59.6

62.2

47.1

42.2

1943

64.9

68.5

50.9

48.8

1944

66.5

69.5

55.4

55.6

1945

68.0

69.7

61.7

61.3

1946

74.6

75.5

69.4

67.3

1947

83.0

84.2

73.2

73.8

1948

88.5

89.9

76. 3

78.5

1949

88.2

89.2

81.1

80.6

1950

89.5

90.2

84.0

83.0

1951

96.2

97.2

88.6

88.4

1952

98.1

98.8

93.5

93.9

1953

99.0

99.3

96.7

97.9

1954

100.0

ioo.o

100.0

100.0

1955

101.2

100.8

105.4

101.8

1956

104.2

103.6

110.7

104.6

1957

108.2

107.5

116.4

108.5

Line

1

2

3

4

5

Table VII-9.—Income and Gross Product Originating in Farming, 1941-57

[Millions of dollars]

1941

13,615

11, 075

1,442

452

646

4,273

3,385

888

21

9,363

1,179

1,124

55

387

472

8,269

1942

19,101

15, 486

1,772

1,159

684

5,747

4,595

1,152

34

13,388

1,388

1,322

66

415

563

12,148

1943

22,049

19, 358

2,140

-176

727

6,813

5,541

1,272

52

15,288

1,565

1,484

81

422

563

13,864

1944

22,892

20, 377

2,169

-445

791

7,272

5,981

1,291

38

15,658

1,750

1,657

93

443

687

14,152

1945

24,119

21, 383

2,218

-462

980

7,913

6,583

1,330

24

16,230

1,869

1,772

97

494

659

14,526

1946

28,963

24, 802

2,829

29

1,303

9,754

8,175

1,579

71

19,280

1,193

1,121

72

535

683

18,235

1947

32,278

29,620

2,971

-1,760

1,447

11, 606

9,871

1,735

75

20,747

1,551

1,472

79

637

277

18,836

1948

36,389

30, 227

2,925

1,732

1,505

12, 639

10, 952

1,687

71

23,821

1,989

1,911

78

704

227

21,355

1949

30,772

27, 828

2,399

-863

1,408

11,507

10, 070

1,437

30

19,295

2,361

2,285

76

764

162

16,332

1950

33,014

28, 512

2,223

815

1,464

12, 556

10, 978

1,578

79

20,537

2,655

2,582

73

803

249

17,328

1951

38,213

32, 958

2,471

1,176

1,608

14, 701

12, 937

1,764

40

23,552

3,110

3,037

73

863

250

19,8?9

1952

37, 663

32, 632

2,374

921

1,736

14, 844

13, 014

1,830

-60

22,759

3,281

3,214

67

910

239

18,807

19£3

34,431

31,126

2,161

-621

1,765

13, 476

11, 824

1,652

-60

20,895

3,399

3,328

71

932

186

16,750

1954

34,098

29, 953

1,944

490

1,711

13, 723

12,105

1,618

-31

20,344

3,481

3,410

71

959

224

16,128

1955

33,400

29, 556

1,806

297

1,741

13, 726

12,162

1,564

-62

19,612

3,575

3,503

72

1,003

200

15,234

1956

33,583

30, 539

1,779

-479

1,744

14,128

12, 535

1,593

-67

19,388

3,607

3,532

75

1,059

484

15,206

1957

34,072

29, 757

1,763

758

1,794

14, 720

13,197

1,523

-79

19,273

3,768

3,691

77

1,113

888

15,280

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

Table VII-10.—Farm Gross Product, in Constant Dollars, 1941-57

[Millions of 1954 dollars]

1941

27,114

22, 336

2,597

993

1,188

8,369

6,289

2,080

42

18,787

1942

29,807

24,116

2,543

1,977

1,171

9,412

7,391

2,021

52

20,447

1943

28,410

24,778

2,527

- 49

1,154

9,716

7,840

1,876

64

18,758

1944

28,982

25, 914

2,506

-568

1,130

9,804

8,045

1,759

47

19,225

1945

28,602

25,676

2,428

-760

1,258

10, 497

8,731

1,766

27

18,132

1946

30,229

26,122

2,889

- 55

1,273

11, 914

10, 227

1,687

68

18,383

1947

28,945

26, 539

2,641

- 1 , 553

1,318

12,110

10, 626

1,484

61

16,896

1948

31,374

26,120

2,518

1,374

1,362

12,154

10, 707

1,447

57

19,277

1949

30,499

27, 770

2,358

-1,041

1,412

12,189

10,624

1,565

29

18,339

1950

32,065

27, 586

2,293

720

1,466

12, 794

11,182

1,612

74

19,345

1951

31,532

27,142

2,179

689

1,522

13, 508

11,959

1,549

31

18,055

1952

32,493

28,361

2,104

440

1,588

13, 638

12,006

1,632

-50

18,805

1953

32,909

29,922

1,990

-655

1,652

13, 402

11,766

1,636

-56

19,451

1954

34,098

29, 953

1,944

490

1,711

13, 723

12,105

1,618

-31

20,344

1955

35,523

31, 230

1,867

667

1,759

14, 045

12, 386

1,659

-68

21,410

1956

36,279

32, 619

1,837

22

1,801

14, 687

12, 981

v 1,706

-74

21,518

1957

35,891

30,950

1,740

1,361

1,840

14, 994

13, 330

1,664

-85

20,812

Line

1

2

3

4

5

6

7

8

9

10

Table VII-11.—Implicit Price Deflators for Farm Gross Product, 1941-57

[Index numbers, 1954=100]

1941

50.2

49.6

55.5

54.4

51.1

53.8

42.7

49.8

49.8

1942

64.1

64.2

69.7

58.4

61.1

62.2

57.0

65.5

65.5

1943

77.6

78.1

84.7

63.0

70.1

70.7

67.8

81.5

81.5

1944

79.0

78.6

86.6

70.0

74.2

74.3

73.4

81.4

81.4

1945

84.3

83.3

91.4

77.9

75.4

75.4

75.3

89.5

89.5

1946

95.8

94.9

97.9

102.4

81.9

79.9

93.6

104.9

104.9

1947

111.5

111.6

112.5

109.8

95.8

92.9

116.9

122.8

122.8

1948

116.0

115.7

116.2

110.5

104.0

102.3

116.6

123.6

123.6

1949

100.9

100.2

101.7

99.7

94.4

94.8

91.8

105.2

105.2

1950

103.0

103.4

96.9

99.9

98.1

98.2

97.9

106.2

106.2

1951

121.2

121.4

113.4

105.7

108.8

108.2

113.9

130.4

130.4

1952

115.9

115.1

112.8

109.3

108.8

108.4

112.1

121.0

121.0

1953

104.6

104.0

108.6

106.8

100.6

100.5

101.0

107.4

107.4

1954

100.0

iao.o

fOQ.O

100.0

100.0

100.0

100.0

100.0

100.0

1955

94.0

94.6

96.7

99.0

97.7

98.2

94.3

91.6

91.6

1956

92.6

93.6

96.8

96.8

96.2

96.6

93.4

90.1

90.1

1957

94.9

96.1

101.3

97.5

98.2

99.0

91.5

92.6

92.6

Line

1

2

3

4

5

6

7

8

9

10

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
$28 NATIONAL INCOME AND PRODUCT TABLES

Table VII-12.—Revised Farm Series, 1929-45

[Millions of dollars]

Line

Net income of farm proprietors.1

Farm gross product:2

Current dollars

Constant (1954) dollars..

1929

6,142

9,688

16,152

1930

4,254

7,624

15,223

1931

3,346

6,237

18,077

1932

2,038

4,449

16,636

1933

2,573

4,603

16,350

1934

2,941

4, 653

13,451

1935

5,303

6,969

16,087

1936

4,332

6,440

13, 718

1937

6,048

8,271

17,312

1938

4,405

6,535

17,304

1939

4,489

6,287

17,185

1940

4,570

6,466

16,500

1941

6,573

9,014

18,088

1942

9,924

13,138

20,041

1943

11,822

15,455

18,616

1944

11,807

15, 522

18,695

1945

12,411

16,168

17.662

Line

1. Revised series of the Department of Agriculture not incorporated into the national

income accounts. See Farm Income Situation No. 169, Agricultural Marketing Service,

U. S. Department of Agriculture, July 1958.

2. Revised series not incorporated into the national income accounts. Consistent with

revised Department of Agriculture estimates referred to in footnote 1.

Table VII-13.—Implicit Price Deflators for Personal Consumption Expenditures by Major Type, 1946-57 1

[Index numbers, 1954=100]

Line

1

2

3

4

5

6

7

Total personal consumption expenditur<

Durable goods, total

Automobiles and parts..

Other

Nondurable goods, total __.

Food and beverages

Clothing and shoes

Gasoline and oil

Other .-.

Services, total

Housing

Household operation

Transportation

Other

1946

76.5

82.0

77.9

83.5

78.8

77.8

86.1

70.1

76.0

71.1

72.6

82.7

65.1

68.5

1947

84.6

88.4

84.3

90.3

88.7

89.0

93.0

78.6

85.6

76.8

75.7

85.1

71.0

76.6

1948

89.5

92.4

90.3

93.5

94.0

93.5

98.7

88.1

92.1

81.7

80.3

87.4

77.1

82.1

1949

88.7

93.5

93.7

93.3

90.9

89.7

94.5

90.1

91.0

83.6

82.7

89.1

81.2

83.3

1950

89.9

94.6

94.1

94.9

91.4

90.5

93.6

90.3

92.1

85.9

85.5

90.7

84.4

85.0

1951

96.0

101.1

99.4

102.2

99.0

99.4

101.8

92.1

97.6

89.8

89.0

92.9

87.6

89.9

1952

98.0

102.2

104.0

101.1

100.1

101.6

100.0

93.9

98.1

93.6

92.9

96.5

91.6

93.7

1953

99.0

99.4

101.8

97.7

99.7

99.8

99.8

97.9

100.0

97.7

97.2

99.6

97.7

97.6

1954

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

1955

100.4

100.1

102.2

98.4

99.5

98.5

100.2

101.1

101.1

101.7

101.3

100.3

101.6

102.4

1956

102.2

101.3

104.8

99.1

100.9

99.3

102.2

104.1

103.0

104.2

103.0

101.3

103.2

106.3

1957

105.2

104.7

110.0

101.0

104.0

102.5

103.8

108.8

106.6

107.1

105.0

102.8

106.8

110.5

Line

1

2

3

4

5

6

7

10

11

12

13

14

1. Footnotes to table II-5 are relevant to this table also.

Table VII-14.—Implicit Price Deflators for New Construction Activity, 1946-57 1

[Index numbers, 1954=100]

Line

Total new construction activity

New private construction activity.

Residential buildings (excluding farm)

Nonresidential buildings (excluding farm)..

Public utilities

Farm construction

Petroleum and natural gas well drilling

All other private _ _._

New public construction activity _..

Residential buildings

Nonresidential buildings

Military facilities

Highways. _ ___ -.

Sewer and water systems

Miscellaneous public service enterprises

Conservation and development

All other public

1946

63.6

63.0

64.5

60.7

59.6

67.3

68.0

58.4

66.5

66.0

57.7

65.1

78.4

58.6

56.4

58.7

72.2

1947

76.7

76.3

78.2

76.1

69.8

82.7

72.2

68.3

78.4

74.9

74.3

79.7

90.3

68.3

65.3

68.5

67.4

1948

85.0

84.6

87.3

84.6

76.5

89.7

80.1

75.6

86.7

87.6

83.8

87.8

101.1

75.9

72.9

76.1

73.4

1949

83.5

83.0

84.5

83.6

78.1

86.9

78.7

78.8

85.3

85.1

82.8

86.7

95.5

77.9

75.4

78.3

74.0

1950

87.3

87.5

90.0

85.6

81.9

89.1

81.6

82.4

86.6

89.8

85.0

87.6

91.5

82.4

80.0

82.9

84.9

1951

94.3

94.3

96.4

93.2

90.3

98.6

87.2

87.7

94.2

97.2

92.1

95.3

102.2

87.3

89.8

87.3

89.5

1952

97.6

97.2

99.0

97.0

92.8

100.1

92.4

91.4

98.6

99.4

96.5

98.3

108.0

91.1

91.8

90.9

91.8

1953

99.9

99.6

100.7

99.2

97.1

100.7

97.1

96.8

100.6

101.3

99.5

100.2

105.7

95.6

96.5

95.8

95.4

1954

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

1955

103.0

103.1

103.1

102.8

103.3

102.3

105.0

105.9

102.4

104.3

102.6

102.3

101.3

104.0

104.5

104.2

104.4

1956

108.6

108.5

107.6

108.9

112.3

106.4

107.4

110.1

108.7

108.6

107.8

108.8

108.8

109.4

112.6

109.7

110.6

1957

112.6

112.4

109.6

114.4

119.4

110.1

110.6

115.7

113.1

110.5

112.6

114.0

112.4

114.6

119.1

114.8

113.6

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

1. Footnote 1 to table V-4 is relevant to this table also.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
SUPPLEMENTARY TABLES

Table VII-15.—Implicit Price Deflators for Producers9 Durable Equipment, 1946-54

(Index numbers, 1954 = 1001

229

Line

Total.

Furniture and fixtures

Cutlery and hand tools

Fabricated metal products (except cutlery and hand tools).

Engines and turbines

Tractors

Agricultural machinery (except tractors)

Construction machinery

Mining and oilfield machinery

Metalworking machinery. _ _ ^

Special-industry machinery, n. e. c

General industrial machinery

Office and store machines

Service-industry and household machines.

Electrical machinery

Trucks, buses, and trailers..

Passenger cars

Aircraft _.

Ships and boats

R ailroad equipment

Instruments

Miscellaneous equipment.

1946

66.7

64.2

58.3

62.2

64.7

60.8

63.2

60.6

61.0

63.5

65.1

58.3

88.1

62.7

68.5

72.8

74.4

59.8

64.6

74.2

73.3

70.3

1947

76.8

76.3

65.9

76.7

71.6

70.6

71.0

70.0

70.3

70.6

73.1

67.9

94.6

77.1

81.3

81.8

83.0

68.3

70.6

79.4

81.6

1948

83.1

81,6

72.5

82.9

76.0

80.1

80.9

78.7

78.0

76.0

79.2

74.5

95.8

82.7

84.6

89.0

90.7

73.6

76.7

83.6

86.6

1949

87.0

83.4

77.4

83.1

77.1

85.5

87.0

83.6

82.6

79.2

83.0

80.7

95.8

86.4

85.5

92.8

94.5

77.9

79.2

86.1

86.7

89.8

1950

89.0

87.2

83.5

86.3

78.8

87.3

89.4

85.9

84.6

83.9

85.8

84.2

97.3

87.4

88.2

91.8

94.8

81.2

81.6

87.2

88.1

92.9

95.9

89.2

94.3

97.8

95.7

93.5

93.7

95.9

95.2

101. 3

96. 5

98.1

99. 3

99.0

88.3

88.4

93. 2

95.8

101. 5

1952

97.5

97.4

90.0

95.1

92.6

96.6

98.7

96.6

94.3

96.0

96.1

94.7

99.8

96.9

95.8

101.9

104.3

91.2

92.0

95.2

95.0

98.9

1953

99.0

98.8

95.5

98.3

97.2

99.5

99.1

98.6

97.6

98.5

98.2

97.3

100.7

99.7

97.1

101.0

101.9

96.2

97.5

99.2

97.4

99.4

1954

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Line

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

n. e. c—Not elsewhere classified.

Table VII-16.—Monetary and Imputed Interest, 1946-57

[Millions of dollars]

Line

1

2

3

4

5

Net interest (component of national income)

Originating in private business

Monetary interest paid

Imputed interest paid

Less: Monetary interest received

Less: Imputed interest received

Originating in households and institutions

Monetary interest paid

Originating in rest of the world

Monetary interest received from abroad

Less: Monetary interest paid to abroad

Personal interest income (component of personal income)

Net interest (component of national income)

Net interest paid by government

Monetary interest paid

Less: Monetary interest received

946

3,113

2,272

4,920

4,181

5,848

981

712

712

129

158

29

7,576

3,113

4,463

5,772

1,309

1947

3,792

2,678

5,573

4,502

6,233

1.164

996

996

118

158

40

8,212

3,792

4,420

5,751

1,331

1948

4,179

2,705

6,223

5,003

7,236

1,285

1,335

1,335

139

167

28

8,706

4,179

4,527

5,904

1,377

1949

4,773

3,001

6,856

5,384

7,878

1,361

1,615

1,615

157

179

22

9,443

4,773

4,670

6,196

1,526

1950

5,469

3,226

7,516

5,897

8,688

1,499

2,073

2,073

170

192

22

10,263

5,469

4,794

6,428

1,634

1951

6,272

3,799

8,687

6,506

9,683

1,711

2,312

2,312

161

186

25

11,245

6,272

4,973

6,652

1,679

1952

7,084

4,239

9,832

7,215

10,891

1,917

2,668

2,668

177

202

25

12,100

7,084

5, 016

7,023

2,007

1953

8,196

4,682

10,935

8,034

12,198

2,089

3, 316

3,346

168

196

28

13,367

8,196

5,171

7,451

2,280

1954

9,145

5,385

12,079

8,532

13,123

2,103

3.578

3,578

182

215

33

14,552

9,145

5,407

7,832

2,425

1955

10,381

6,051

13, 731

9,440

14, 790

2,330

4,126

4,126

204

242

38

15,770

10, 381

5,389

7,951

2,562

1956

11,302

6,299

15,306

10, 574

16,917

2,664

4,764

4,764

239

281

42

17,047

11,302

5,745

8,837

3,092

1957

12,598

7,128

17, 368

11,416

18, 728

2,928

5,171

5,171

299

342

43

18,772

12, 598

6,174

9,758

3,584

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

Table VII—17.—Major Items of Personal Income and Personal Consumption Expenditures in Kind, 1946—57

[Millions of dollars]

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Personal income and consumption expenditures in kind

Food furnished government (including military) and

commercial employees.

Standard clothing issued to military personnel .

Meals furnished domestic servants and nurses

Net rent of owner-occupied farm and nonfarm dwellings.

Services furnished without payment by financial intermediaries except insurance companies.

Employees' lodging. . . _

Personal income and consumption expenditures partially in

kind.'

Food produced and consumed on farms

Fuel produced and consumed on farms

Personal consumption expenditures in kind not included

in personal income.

Depreciation of owner-occupied farm and nonfarm

dwellings.

Taxes on owner-occupied farm and nonfarm dwellings

Institutional depreciation. . . .

1946

6,174

1,349

364

214

2,628

1,499

120

2,829

2,628

201

2,851

1,364

1,278

209

1947

5,641

1,023

229

277

2,455

1,532

125

2,971

2,766

205

3,244

1,531

1,496

217

1948

6,196

1,021

191

320

2,762

1,768

134

2,926

2,732

194

3,675

1,689

1,760

226

1949

6,843

1,000

212

318

3,300

1,877

136

2,399

2,228

171

4,181

1,825

2,106

250

1950

7,635

1,076

272

374

3,763

2,008

142

2,223

2,062

161

4,576

2.011

2,286

279

1951

8,793

1,632

414

416

3,996

2,184

151

2,471

2,329

142

5,037

2,233

2,492

312

1952

9,483

1,769

256

399

4,430

2,472

157

2,373

2,246

127

5,523

2,423

2,728

372

1953

10,079

1,650

161

393

4,918

2, 794

163

2,161

2,035

126

6,030

2,638

2,984

408

1954

10,345

1,478

79

371

5,306

2,947

164

1,944

1,824

120

6,588

2,885

3,274

429

1955

10,599

1,292

52

429

5, 419

3,240

167

1,804

1,688

116

7,280

3,203

3,627

450

1956

11,391

1,198

61

460,

5,836

3,666

170

1,779

1,669

110

8,103

3,568

4,060

475

1957

12,552

1,227

59

476

6,754

3,863

173

1,763

1,659

104

8,845

3,901

4,444

500

Line

1

2

3

4

5

6

7

8

9

10

11

12

13

14

1. These items are presented at their gross value because data on costs are not available separately from costs of farm output sold on the market. Only the net income derived from production of these items represents income in kind; only the net income derived from, and the depreciation and taxes incurred in, their production represent personal consumption expenditure in

kind. On a cash income basis the current expenses incurred in their production, other than depreciation and taxes, would become personal consumption expenditures instead of business

expenses, the taxes would become personal taxes instead of business taxes, and the depreciation would not appear.

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Federal Reserve Bank of St. Louis
230 NATIONAL INCOME AND PRODUCT TABLES

Table VII-18.—Corporate Profits and Inventory Valuation Adjustment, Quarterly, 1946-47

[Billions of dollars]

Line

1

2

3

4

5

Corporate profits and inventory valuation adjustment

Profits before tax .. ._ -._.____.. _ . . ._ ._

Profits tax liability

Profits after tax

Inventory valuation adjustment .__ .

1946

I

2.9

3.2

1.3

1.9

- . 3

II

4.0

4.7

1.9

2.8

y

III

4.5

6.5

2.6

3.9

-2. 0

IV

5.9

8.1

3.3

4.8

-2. 2

Year

17.3

22.6

9.1

13.4

-5. 3

1947

I

4.8

7.3

2.8

4.5

-2. 5

II

5.9

6.9

2.6

4.3

-1. 0

III

6.0

7.1

2.7

4.4

-1. 1

IV

7.0

8.2

3.1

5.1

-1. 2

Year

23.6

29.5

11.3

18.2

-5.9

Table VII-18.—Corporate Profits and Inventory Valuation Adjustment, Quarterly, 1952-53

[Billions of dollars]

Line

1

2

3

4

5

Corporate profits and inventory valuation adjustment .. _. ._ . __ _

Profits before tax . ._ . _ .

Profits tax liability _.

Profits after tax

Inventory valuation adjustment

1952

I

9.1

9.0

4.8

4.2

.1

II

9.5

9.1

4.8

4.3

.5

III

9.0

8.9

4.7

4.2

.0

IV

10.1

9.7

5.2

4.6

.4

Year

37.7

36.7

19.5

17.2

1.0

1953

I

9.5

9.7

5.1

4.6

- . 2

II

10.5

10.8

5.7

5.1

- . 3

I II

9.2

9.9

5.2

4.7

- . 7

IV

8.1

8.0

4.2

3.8

.2

Year

37.3

38.3

20.2

18.1

-1. 0

Table VII—19.—Relation of Corporate Profits, Taxes, and Dividends to Corresponding Totals as Tabulated by Internal Revenue Service

1946-55 l

[Millions of dollars]

Line

Compiled net profit, IRS.

Add: Posttabulation amendments and revisions, including

allowance for audit profits.2

Depletion (tax deductible)

State income taxes on corporations 3 .

Profits of Federal Reserve Banks (FRB)

Deduct: Tax-return measures of:

Profits of mutual financial intermediaries

Gains, net of losses, from sale of property

Domestic dividends received

Income from equities in foreign corporations and branches (to U. S. corporations) .3

Add: Income received from such equities by all U. S. residents,

net of corresponding outflows.4

Equals: Profits before tax, QBE..

Federal income and excess profits taxes, IRS..

Add: Posttabulation amendments and revisions, including

results of audit and loss carryback.*

Income taxes of Federal Reserve Banks (FRB)

State income taxes on corporations 3

Deduct: Federal income taxes on mutual financial intermediaries

U. S. tax credits for foreign taxes paid

Equals: Federal and State income and excess profits tax

liability, QBE.

Profits after tax, OBE (line 11 less line 18).

Dividends paid (in cash or assets) IRS

Add: Dividends paid by Federal Rese* *e Banks (FRB)

U.S. receipts of dividends from abroad, net of payments

to abroad.4

Deduct: Dividends received by U. S. corporations (excluding

mutuals).

Equals: Net dividends, OBE

Undistributed profits, OBE (line 19 lest line 24)

1946

25,399

243

799

462

93

1,248

1,269

1,713

640

425

22,551

8,875

- 5 5

162

9,111

13,440

7,497

11

129

1,853

5,784

7,656

1947

31,615

410

1,210

604

93

1,330

923

1,882

961

29,525

10,982

-138

75

604

10

230

11,283

18,242

8,365

12

221

2,077

6,521

11,721

1948

34,588

540

1,711

670

232

1,440

796

2,194

1,147

836

33,000

11,920

18

167

670

14

278

12,483

20,517

9,386

12

254

2,409

7,243

13,274

1949

28,387

420

1,476

602

239

1,583

667

2,162

1,174

832

26,370

9,817

193

602

47

270

10,375

15,995

9,569

12

305

2,413

7,473

8,522

1950

42,831

880

1,709

767

195

1,707

1,083

2,460

1,504

1,000

40,628

17,317

125

197

767

74

467

17,865

22,763

11,553

13

426

2,784

9,208

13,555

1951

43,800

1,230

2,085

878

299

1,763

1,294

2,377

1,920

1,215

42,153

22,082

- 2 3

255

878

120

625

22,447

1952

14

418

2,703

9,029

10,677

38,735

1,040

2,126

820

351

2,095

1,216

2,350

1,841

1,121

36,691

19,148

292

820

145

587

19,459

19,706 j 17,232

11,300 11,263

15

302

2,626

8,954

8,278

1953

39,801

1,530

2,302

803

400

2,383

978

2,389

1,901

1,126

38,311

19,869

11

343

803

162

642

20,222

18,089

11,601

16

311

2,703

9,225

8,864

1954

36,721

1,190

2,359

765

329

2,560

1,997

2,332

1,827

1,413

34,061

16,861

220

276

765

176

726

17,220

16,841

11,913

16

462

2,552

9,839

7,002

1955

47,949

1,050

2,806

958

302

2,819

1,977

2,572

2,393

1,558

44,862

21,741

64

252

958

229

959

21,827

23,035

13,592

18

475

2,870

11,215

11,820

Line

1

2

3

4

5

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

1. Except as noted, the values shown in this table are taken directly or with relatively

minor adjustments from the basic Internal Revenue Service tabulations.

2. Consists principally of allowance for audit profits as estimated by the Office of Business

Economics.

3. Office of Business Economics estimate of amounts included in tax-return data.

4. Estimate by the Office of Business Economics.

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SUPPLEMENTARY TABLES 231

Table VII-18.—Corporate Profits and Inventory Valuation Adjustment, Quarterly, 1948-51

[Billions of dollars]

1948

I

6.9

7.6

2.9

4.7

- . 8

II

7.5

8.1

3.1

5.0

- . 5

III

7.6

8.5

3.2

5.3

- . 9

IV

8.8

8.8

3.3

5.5

.0

Year

30.8

33.0

12.5

20.5

-2. 2

1949

I

6.9

6.6

2.6

4.0

. 3

II

7.1

6.1

2.4

3.7

.9

III

7.4

6.7

2.6

4.1

.7

IV

6.9

6.9

2.7

4.2

.0

Year

28.2

26.4

10.4

16.0

1.9

1950

I

6.5

6.9

3.0

3.9

- . 3

II

8.4

8.9

3.9

5.0

- . 5

III

10.1

12.0

5.3

6.7

-1. 9

IV

10.7

12.9

5.7

7.2

-2. 2

Year

35.7

40.6

17.9

22.8

-5. 0

1951

1

9.2

11.5

6.1

5.4

-2. 3

II

10.6

10.8

5.7

5.0

- . 2

I II

10.2

9.4

5.0

4.4

.8

IV

10.9

10.5

5.6

4.9

.4

Year

41.0

42.2

22.4

19.7

-1. 2

Line

1

2

3

4

5

Table VII—18.—Corporate Profits and Inventory Valuation Adjustment, Quarterly, 1954—57

[Billions of dollars]

1954

I

7.6

7.8

3.9

3.8

- . 1

II

8.8

8.8

4.5

4.4

.0

III

8.1

8.3

4.2

4.1

- . 2

IV

9.2

9.2

4.7

4.6

.0

Year

33.7

34.1

17.2

16.8

- . 3

1955

I

9.8

10.2

5.0

5.2

- . 4

II

11.2

11.3

5.5

5.8

- . 2

III

10.7

11.3

5.5

5.8

- . 6

IV

11.5

12.0

5.9

6.2

- . 6

Year

43.1

44.9

21.8

23.0

-1. 7

I

10.5

11.2

5.5

5.7

- . 8

1956

II

11.0

11.7

5.8

5.9

- . 8

I II

10.5

10.8

5.3

5.5

- . 3

IV

11.1

11.8

5.8

6.0

- . 7

Year

42.9

45.5

22.4

23.1

-2. 6

1957

I

10.5

11.3

5.6

5.6

Q

II

H . l

11.3

5.6

5.7

- . 3

I II

10.5

10.8

5.4

5.4

- . 4

IV

9.8

10.0

5.0

5.0

- . 2

Year

41.9

43.4

21.6

21.8

-1. 5

Line

1

2

3

4

5

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Federal Reserve Bank of St. Louis
INDEX

Statistical tables are denoted by an asterisk (*)

Accidental damage to fixed capital, annually 1946-57*, 188

Accounts, national economic

see Economic accounting system

Agriculture

income and gross product originating in

annually, 1929-57*, 226-227

data sources and estimating procedures, 92

discussed, 53-54

revised farm series, U. S. Department of Agriculture

annually, 1929-45*, 228

discussed, 92

statistics of income and employment, other*, 130-133, 200-201, 210-217

see also Inventory change

Air transportation industry, statistics of income and employment in*, 130-

131, 200-201, 203-207, 211-216

Amusement and recreation industry, statistics of income and employment in*,

130-131, 200-201, 203-207, 211-216

Apparel and other finished fabric products manufacturing, statistics of

income and employment in*, 130-131, 200-201, 203-207, 211-216

Automobile and automobile equipment manufacturing, statistics of income

and employment in*, 130-131, 200-201, 203-207, 211-216

Averages

see Family income; Personal income; Wages and salaries

B

Balance of payments

on capital account

annually, 1946-57*, 195

discussed, 64

on goods, services, and unilateral transfers, annually 1946-57*, 184

Banking, statistics of income and employment in*, 130-131, 200-201, 203-

207, 211-214, 216

Business income and product

components of, annually 1929-57*, 134-135

product in constant dollars, annually 1929-57*, 136-137

Business inventories, change in

see Inventory change

Business net incomes

see Corporate profits; Unincorporated enterprises, income of

Business services industry, statistics of income and employment in*, 130-131,

200-201, 203-207, 211-216

Business transfer payments

see Transfer payments

Capital consumption allowances

annually, 1929-57*, 138-139

data sources and estimating procedures, 95, 101

quarterly totals seasonally adjusted at annual rates, 1946-57*, 140-141

see also Depreciation charges

Capital outlays charged to current expense

see Capital consumption allowances

Chemicals and allied products manufacturing, statistics of income and employment in*, 130-131, 200-201, 203-207, 211-216

Clothing, personal consumption expenditures for

see Personal consumption expenditures

Coal mining, statistics of income and employment in*, 130-131, 200-201,

203-207, 211-216

Commodity flow method of estimation

see Personal consumption expenditures for commodities; Producers' durable equipment

Communications and public utilities industry, statistics of income and employment in*, 130-133, 200-216

Compensation of employees

data sources and estimating procedures, 87-89

by industry, annually 1946-57*, 200

by major component

annually, 1929-57*, 126-127

quarterly totals seasonally adjusted at annual rates, 1946-57*, 128-

129

Concepts and methods

published materials on, 48-49

see also Data sources and estimating procedures

Constant dollars

see Construction activity; Disposable income; Gross national product;

Personal consumption expenditures; Producers' durable equipment

Construction activity

annually, 1929-57*, 118-119

in constant dollars

annually, 1929-57*, 118-119

discussed, 58-59

quarterly totals seasonally adjusted at annual rates, 1947-57*, 124-

125

by type

annually, 1946-57*, 191

discussed, 58-59

data sources and estimating procedures

nonfarm residential construction, 84-85

other construction, 83-84

quarterly estimates, 97

recommendations for improving, 104

price deflators (implicit) for major types, annually 1946-57*, 228

quarterly, 1946-57*, 122-123

quarterly totals seasonally adjusted at annual rates, 1946-57*, 120-121

by type, annually 1946-57*, 190

Construction, contract, statistics of income and employment in*, 130-131,

200-217

Consumption

see Personal consumption expenditures

Contributions for social insurance

see Social insurance contributions

Corporate funds, sources and uses of

annually, 1946-57*, 195

discussed, 64

cumulative totals, 1947-57*, 12

in postwar period, 11-12

Corporate profits

corporate income after Federal and State income taxes

by industry, annually 1946-57*, 205

quarterly, 1946-57*, 230-231

quarterly totals seasonally adjusted at annual rates, 1946-57*,

128-129

*33

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Federal Reserve Bank of St. Louis
234 INDEX

Corporate profits—Continued

corporate income before Federal and State income taxes

by industry, annually 1946-57*, 203

quarterly, 1946-57*, 230-231

quarterly totals seasonally adjusted at annual rates, 1946-57*, 128—

129

data sources and estimating procedures, 15-16, 71, 93-94, 101, 105

measurement affected by depreciation allowances, 15-16

recommendations for improving of, 105

disposition of, 16

and inventory valuation adjustment

by broad industry groups

quarterly totals seasonally adjusted at annual rates, 1946-57*,

208-209

quarterly, 1946-57*, 230-231

new data, nature and uses of, 60

profit ratio swing in postwar period, 15

relation to Internal Revenue Service tabulations, annually 1946-55*, 230

undistributed corporate income, by industry, annually 1946-57*, 207

Corporate profits tax liability

see Taxes; Government receipts

Corporate sales, by industry, annually 1946-57*, 215

Crude petroleum and natural gas industry, statistics of income and employment in*, 130-131, 200-201, 203-207, 211-216

Cyclical developments in postwar period, 16-26

1948-50, 17-19

1953-55, 19-21

1957-58, 21-26

Data sources and estimating procedures

annual estimates

capital consumption allowances, 95

new construction

private nonresidential, 83

residential, 84-85

corporate profits, 93-94

government receipts and expenditures, 85-86

interest, 94-95

change in business inventories, 85

net foreign investment, 85

personal consumption expenditures, 74-82

commodities, 76--79

services, 79-80

producers' durable equipment, 82-83

rental income of persons, 93

supplements to wages and salaries, 87

income of unincorporated enterprises, 89—92

wages and salaries, 87-89

reliability of estimates

appraisal of income and product components, IS—Id

assessment of, 70-71

and implications of statistical revisions, 72

indications of error in initial estimates of consumer expenditures,

74-75.

revisions, scope and overall results, 74-76

see also Data sources and estimating procedures under title of particular series,

quarterly or monthly estimates

capital consumption allowances, 101

new construction, 97

corporate profits, 101

dividends, 100

net exports, 98

government purchases, 98-99

gross national product, constant dollar, 52

change in business inventories, 98

personal consumption expenditures for commodities, 96-97

personal consumption expenditures for services, 97

personal income, 99-100

producers' durable equipment, 97-98

Data sources and estimating procedures—Continued

quarterly or monthly estimates—Continued

proprietors' income, 100

personal contributions for social insurance, 100

indirect business taxes, 101

transfer payments, 100

wages and salaries, 99-100

discontinuance of unadjusted income series, 96

reliability of the estimates in relation to annual estimates, 96

recommendations for improvement of, 102-105

Depreciation charges

annually, 1946-57*, 188

corporate, by industry

annually, 1946-57*, 216

discussed, 59

noncorporate, by industry division, annually 1946-57*, 217

on privately owned structures and equipment in manufacturing ej

tablishments

annually, 1929-57*, 196-197

discussed, 59

and the calculation of profit ratios, 15-16

see also Capital consumption allowances

Disposable income

annually, 1929-57*, 144-145

in constant dollars

annually, 1929-57*, 144-145

conceptual problem discussed, 55

quarterly totals seasonally adjusted at annual rates, 1946-57*, 146-

147

and consumption expenditures in postwar period, 3—4

monthly totals seasonally adjusted at annual rates, 1946-57*, 148-149

quarterly totals seasonally adjusted at annual rates, 1946—57*, 146—147

by States and regions

per capita

discussed, 54-55

selected years, 1929-55*, 160

similarity in distribution to total personal income, 1957, 28

see also Personal income by States

Distribution of income, geographic

see Personal income by States

Distribution of income, by size

see Family income

Distributive shares

see National income

Dividends, corporate

annually, 1929-57*, 144-145

data sources and estimating procedures, 100

by industry, annually 1946-57*, 206

monthly totals seasonally adjusted at annual rates, 1946-57*, 148-149

quarterly totals seasonally adjusted at annual rates, 1946—57*, 146-147

relation to Internal Revenue Service tabulations, annually 1946-55*, 230

Earnings per full-time employee, by industry, annual averages, 1946—57*, 213

Economic accounting system

accounts, 1957*, If4-416

new system of summary accounts, discussed, 51

Economic growth and progress, 1-26

Economy, national, postwar growth of, 1-26

changing income structure, 12—16

changing market demand patterns, 3-12

cyclical forces, 16-26

expansion of output, 2-3

Educational services, statistics of income and employment in*, 130-131,

200-201,211-214

Employee compensation

see Compensation of employees

Employees, number of

full-time equivalent, by industry, annually 1946-57*, 211

full-time and part-time, by industry, annual averages, 1946-57*, 212

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INDEX 235

Engineering and other professional services, statistics of income and employment in*, 130-131, 200-201, 203-207, 211-216

Equipment, producers' durable

see Producers' durable equipment

Estimation (sources and methods)

see Data sources and estimating procedures

F

Fabricated metal products manufacturing, statistics of income and employment in*, 130-131, 200-201, 203-207, 211-216

Family income

average

before and after Federal income tax liability, 1929, 1947, annually

1950-57*, 44

increase since 1929, 42-43

postwar growth, 42-43

and buying power, upward shifts in, 40-46

distribution by size

in constant dollars, 1947 and 1957*, 45

all consumer units

selected years, 1944-57*, 41, 161

discussed, 41-42, 55

farm operator families, 41-43

middle incomes, 1929 and 1957, 45

nonfarm families, 41-42

nonfarm families, farm operator families, and unattached individuals

annually, 1953-56*, 161

discussed, 54-55

published materials on, 48, 73

lelative shares

narrowing differentials since pre-war period, 44-46

postwar stability, discussed, 44

tax liability

discussed, 41

year 1956*, 42

by type of consumer unit, 1956*, 43

types of income, 1955*, 43

unattached individuals, 42

future research, directions of, 67-68

relation to personal income series, 55

Farms

see Agriculture

Finance, insurance, and real estate industry division, statistics of income

and employment in*, 130-133, 200-207, 210-214, 216-217

Fixed assets

net value (in constant dollars) of structures, equipment, and inventories

in manufacturing establishments

annually, 1928-57*, 196-197

discussed, 59

Food, personal consumption expenditures for

changes in relation to total expenditures, 5

data sources and estimating procedures, 78-79

see also Personal consumption expenditures

Food and kindred products manufacturing, statistics of income and employment in*, 130-131, 200-201, 203-207, 211-216

Foreign transactions

account, 1957*, 116

data sources and estimating procedures, 93

exports, imports, and grants

new treatment of, discussed, 57-58

reconciliation of national income accounts with balance of payments

annually, 1946-57*, 184

comment, 58

role of foreign markets in growth of postwar economy, 7-8

in national income accounts

annually, 1946-57*, 182

quarterly, 1946-57*, 182-183

quarterly totals seasonally adjusted at annual rates, 1946-57*, 182-

183

selected years, 1947-57*, 8

466759 0—59 16

Foreign transactions—Continued

net foreign assistance

discussed, 58

U. S. Government, annually 1946-57*, 185

statistical tables, list of, 110

see also Net exports of goods and services; Net foreign assistance

Furniture and finished lumber products manufacturing, statistics of income

and employment in*, 130-131, 200-201, 203-207, 211-216

Furniture and fixtures manufacturing, statistics of income and employment

in*, 130-131, 200-201, 203-207, 211-216

Government, income and gross product originating in

annually, 1929-57*, 134-135

in constant dollars, annually 1929-57*, 136-137

Government and government enterprises, statistics of income and employment in*, 130-133, 200-202, 211-214

Government interest payments

total

annually, 1929-57*, 138-139

quarterly totals seasonally adjusted at annual rates, 1946-57*, 140-

141

Federal; State and local

annually, 1946-57*, 164-165

quarterly, 1946-57*, 168-169

quarterly totals seasonally adjusted at annual rates, 1946-57*, 166-

167

see also Interest

Government purchases of goods and services

annually, 1929-57*, 118-119

in constant dollars

annually, 1929-57*, 118-119

quarterly totals seasonally adjusted at annual rates, 1947—57*, 124-

125

data sources and estimating procedures, 98-99, 103-104

by object, for selected functions annually 1952-57*, 178

quarterly, 1946-57*, 122-123

quarterly totals seasonally adjusted at annual rates, 1946-57*, 120-121

see also Government receipts and expenditures

Government receipts and expenditures

account, 1957*, 115

annually, by type, 1946-57*, 164-165

data sources and estimating procedures, 85—86

expenditures, by type of function

annually, 1952-57*, 172-177

discussed, 55-56

Federal

discussed, 23-26

selected quarters, 1948-58, seasonally adjusted at annual rates*, 24

future research, directions of, 66-67

new data, nature and uses of, 55-57

quarterly, 1946-57*, 168-169

quarterly totals seasonally adjusted at annual rates, 1946-57*, 166-167

relation of Federal receipts and expenditures in national income accounts

to Budget

discussed, 56-57

fiscal years, 1952-57*, 178-179

relation of State and local receipts and expenditures in national income

accounts to Census data

discussed, 57

fiscal years, 1952-56*, 179

role in growth of postwar economy

defense expenditures, 5-6

purchases for civilian functions, 6

receipts, 7

transfer payments, 6-7

statistical tables, list of. 110

Government surplus or deficit on income and product transactions

annually, 1946-57*, 188

in postwar period, 7

quarterly totals seasonally adjusted at annual rates, 1946-57*, 188-189

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Federal Reserve Bank of St. Louis
236 INDEX

Gross national expenditure

see Gross national product

Gross national product

articles and other published materials on, 47—49

chief components

annually, 1929-57*, 118-119

quarterly, 1946-57*, 122-123

quarterly totals seasonally adjusted at annual rates, 1946-57*,

120-121

in constant dollars

by major components

annually, 1929-57*, 118-119

quarteily totals seasonally adjusted at annual rates, 1947—57*,

124-125

by industry; directions of future research, 65—66

by legal form of organization, annually 1929-57*, 136-137

new data, nature and uses of

annual estimates, 51-52

quarterly estimates, 52

pre-1929 estimates, 54

by producer group

discussed, 53-54

farm and nonfarm business, annually 1929-57*, 138-139

general Government, farms, and all other industries, 1909-28*.

138-139

by major type of product

annually, 1929-57*, 126-127

discussed, 52-53

and by purchaser

annually, 1929 and 1947-57*, 224

discussed, 13, 52-53

data sources and estimating procedures

annual estimates

personal consumption expenditures, 74—82

fixed nonresidential investment, 82-84

other components, 84—86

quarterly estimates

personal consumption expenditures, 96-97

gross private domestic investment, 97-98

net exports, 98

Government purchases, 98—99

by durability andxsource of demand, percentage distributions, years

1929, 1947, and 195%*, 12

by legal form of organization, annually 1929-57*, 134-135

national income and personal income, relation of

annually, 1929-57*, 138-139

quarterly totals seasonally adjusted at annual rates, 1946-57*,

140-141

personal consumption expenditures, postwar relation to, 4

price deflators (implicit)

for major components

annually, 1929-57*, 220-221

quarterly totals seasonally adjusted at annual rates, 1947-57*,

222-223

by legal form of organization, annually 1929-57*, 226-227

by major type of product

annually, 1929-57*, 222-223

and by purchaser

annually, 1929 and 1947-57*, 225

discussed, 52-53

by producer group

farm and nonfarm business, annually 1929-57*, 138-139

general government, farms and all other industries, annually 1909-

28*, 138-139

new data, nature and uses of, 53—54

product composition, shifts in, 13

effect on industrial structure of income, 13-14

product types, major

annually, 1929-57*, 126-127

nature and uses of new data, 52-53

Gross national product—Continued

product types, major—Continued

and purchasers

annually, 1929 and 1947-57*, 224

discussed, 13-14, 52-53

and final purchases, selected quarters, 1955-57*, 21

by type of receipt and type of expenditure, by major economic groups

annually, 1946-57*, 220-221

discussed, 51

research program for future, 62—69

reliability of estimates, 70-72, 75-76, 86-87

revisions, scope and overall results, 71—72

statistics, list of general tables, 109

Gross private domestic investment

chief components

annually, 1929-57*, 118-119

quarterly, 1946-57*, 122-123

quarterly totals seasonally adjusted at annual rates, 1946-57*, 120-

121

in constant dollars

annually, 1929-57*, 118-119

quarterly totals seasonally adjusted at annual rates, 1947-57*,

124-125

data sources and estimating procedures, 82-85, 97-98

fixed investment, financing of postwar, 10-12

manufacturing establishments

net formation of privately owned fixed capital in

annually, 1929-57*, 196-197

discussed, 59

purchases of structures and equipment for

annually, 1929-57*, 196-197

discussed, 59

plant and equipment outlays, business

annually, 1946-57*, 193

data sources and estimating procedures, 83

role in growth of postwar economy, 8—12

fixed investment, 9—10

see also Construction activity; Inventory change; and Producers'

durable equipment

Gross saving and investment account, 1957*, 116

H

Highway freight transportation and warehousing, statistics of income and

employment in*, 130-131, 200-201, 203-207, 211-216

Historical series, nature and uses of new, 54

Hotels and other lodging places, statistics of income and employment in*,

130-131, 200-201, 203-207, 211-216

Households and institutions

income and product originating in, by type

annually, 1929-57*, 134-135

in constant dollars, annually 1929-57*, 136-137

Housing

data sources and estimating procedures

rental value of owner-occupied dwellings, 93

rent of tenant-occupied nonfarm dwellings, 93

expenditures in relation to total consumption expenditures, 5

investment in, as a factor in growth of postwar economy, 9-10

personal consumption expenditures for

constant-dollar estimates, annually 1946—57*, 151

quarterly estimates, 1946-57*, 154-155

quarterly totals seasonally adjusted at annual rates, 1946-57*, 152-

153

by type, annually 1946-57*, 150-151

I

Imputation

major items of personal income and personal consumption expenditures

in kind, annually 1946-57*, 229

Income distribution, geographic

see Personal income by States

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INDEX 237

Income in kind

see Imputation

Income, national

see National income

Income, personal

see Personal income

Income and employment by industry

nature of new data presented, 59-60

statistics of*, 130-133, 200-217

list of general tables, 111

Income size distribution

see Family income

Income of unincorporated enterprises

see Unincorporated enterprises, income of

Industry sales and purchases, directions of future research on, 68-69

Industry statistics*

average annual earnings per full-time employee, 213

corporate profits (before tax) and inventory valuation adjustment, 230-

231

corporate sales, 215

depreciation charges

corporate, 216

noncorporate, 217

income originating, by type, 130-131, 200-210

inventory change, business, by broad groups, 193

nonagricuJturai personal income, monthly, 148-149

number of employees, 211-212

number of persons engaged in production, 214

wage and salary disbursements, by broad divisions, 144-149

Instrument manufacturing, statistics of income and employment in*, 130-

131, 200-201, 203-207, 211-216

Insurance agents and combination cffices, statistics of income and employment in*, 130-131, 200-201, 203-207, 211-214, 216

Insurance carriers, statistics of income and employment in*, 130-131, 200-

201, 203-207, 211-214, 216

Interest

annually, 1929-57*, 126-127

data sources and estimating procedures, 94-95

by industry division, annually 1946-57*, 210

monetary and imputed, annually 1946-57*, 229

personal

annually, 1929-57*, 144-145

data sources and estimating procedures, 100

monthly totals seasonally adjusted at annual rates, 1946-57*, 148-149

quarterly totals seasonally adjusted at annual rates, 1946-57*,

146-147

quarterly totals seasonally adjusted at annual rates, 1946-57*. 128-129

see also Government interest payments

Inventory change

annually, 1929-57*, 118-119

in constant dollars

annually, 1929-57*, 118-119

quarterly totals seasonally adjusted at annual rates, 1947-57*,

124-125

data sources and estimating procedures

farm, 85, 98

nonfarm, 85, 98

recommendations for improving, 103-105

by legal form of organization and by industry, annually 1946-57*, 193

quarterly, 1946-57*, 122-123

quarterly totais seasonally adjusted at annual rates, 1946-57*, 120-121

see also Inventory valuation adjustment

Inventory valuation adjustment

annually, 1929-57*, 126-127

corporate profits and, by broad industry groups

quarterly, 1946-57*, 230-231

quarterly totals seasonally adjusted at annual rates, 1946-57*,

208-209

data sources and estimating procedures, 98

see also Inventory change, nonfarm

Inventory valuation adjustment—Continued

by legal form of organization and industry, annually,1946-57*, 210

quarterly totals seasonally adjusted at annual rater, 1946-57*, 128-129

Investment

see Net foreign investment; Gross private domestic investment; ana

Saving and investment

Iron and steel and their products, statistics of income and employment in

manufacture of*, 130-131, 200-201, 203-207, 211-216

Leather and leather products manufacturing, statistics of income and

employment in*, 130-131, 200-201, 203-207, 211-216

Legal services, statistics of income and employment in*, 130-131, 200-201,

211-214

Liquid saving

items of, annually 1946-57*, 194

Local and highway passenger transportation, statistics of income and employment in*, 130-131, 200-201, 203-207, 211-216

Lumber and furniture products manufacturing, statistics of income and

employment in*, 130-131, 200-201, 203-207, 211-216

Lumber and timber basic products manufacturing, statistics of income and

employment in*, 130-131, 200-201, 203-207, 211-216

Lumber and wood products, except furniture, statistics of income and

employment in*, manufacture of, 130-131, 200-201, 203-207, 211-216

M

Machinery, statistics of income and employment in manufacture of*, 130-

131, 200-201, 203-207, 211-216

Manufacturing, statistics of income and employment in*, 130-133, 200-217

Market demand patterns, 3-12

Medical and other health services, statistics of income and employment

in*, 130-131, 200-201, 211-214

Metals and metal products manufacturing, statistics of income and employment in*, 130-131, 200-201, 203-207, 211-216

Metal mining, statistics of income and employment in*, 130-131, 200-201,

203-207, 211-216

Methods, statistical

see Data sources and estimating procedures

Mining, statistics of income and employment in*, 130-133, 200-217

Motion picture industry, statistics of income and employment in*, 130-131,

200-201, 203-207, 211-216

N

National Accounts Review Committee

recommendations of and changes made in present volume

disposable income, 60

foreign transactions, 61

future research, 61

government accounts, 61

national income and product, 60-61

personal income, 60-61

saving and investment, 61

National income

articles and other published materials on, 47-49

data sources and estimating procedures, 86-96

gross national product, and personal income, relation of

annually, 1929-57*, 138-139

quarterly totals seasonally adjusted at annual rates, 1946-57*,

140-141

by industrial origin

annually, 1929-57*, 130-131

estimation, problems of, 87

quarterly totals seasonally adjusted at annual rates, 1946-57*,

132-133

shifts in structure of

affected by changes in composition of gross national product,

12-14

effect on income-type distribution, 14-16

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Federal Reserve Bank of St. Louis
23d INDEX

National income—Continued

by legal form of organization

annually, 1929-57*, 134-135

quarterly totals seasonally adjusted at annual rates, 1946-57*,

136-137

shifts in industrial origins, influence of, 14-15

new data, nature and uses of, 50-61

quarterly estimates

new data, nature and uses of, 50-51, 54

unadjusted series, discontinuance of, 96

relation to personal income, 100-101

research program for future, 62—69

statistics

developments of last quarter century reviewed, 47-49

list of general tables, 109

nature and significance of, 1-2

reliability of, 70-72, 74-76, 86-87

revisions, scope of and overall results, 71-72

by type of income

annually, 1929-57*, 126-127

quarterly totals seasonally adjusted at annual rates, 1946—57*,

128-129

shifts in industrial origins, influence of, 14-16

see also Data sources and estimating procedures under title of particular

series

National income and product

account, 1957*, 114

new system of summary accounts, discussed, 51

see also Summary tables II through V, 115-116

Net change in business inventories

see Inventory change

Net corporate dividend payments

see Dividends, corporate

Net exports of goods and services

annually, 1929-57*, 118-119

in constant dollars

annually, 1929-57*, 118-119

quarterly totals seasonally adjusted at annual rates, 1947-57*, 124-

125

quarterly, 1946-57*, 122-123

quarterly totals seasonally adjusted at annual rates, 1946-57*, 120-121

see also Foreign transactions

Net foreign assistance

by major type and geographic area, annually 1946-57*, 185

see also Foreign transactions

Net foreign investment

data sources and estimating procedures, 57-58, 85

role in growth of postwar economy, 8

by type

annually, 1946-57*, 182

quarterly, 1946-57*, 182-183

quarterly totals, seasonally adjusted at annual rates, 1946-57*,

182-183

Net interest

see Interest

Net motional product or expenditure, annually 1929-57*, 138-139

Nonferrous metals and their products, statistics of income and employment

in manufacture of*, 130-131, 200-201, 203-207, 211-216

Nonprofit membership organizations, statistics of income and employment

in*, 130-131, 200-201, 211-214

Number of persons engaged in production, by industry, annually 1946-57*,

214

Other labor income

annually, 1929-57*, 126-127

data sources and estimating procedures, 100

monthly totals seasonally adjusted at annual rates, 1946-57*, 148-149

quarterly totals seasonally adjusted at annual rates, 1946-57*, 146-147

Output

see Gross national product

Paper and allied products manufacturing, statistics of income and employ

mentin*, 130-131, 200-201, 203-207, 211-216

Per capita income

see Personal income by States

Personal consumption expenditures

in constant dollars

annually, 1929-57*, 118-119

quarterly totals seasonally adjusted at annual rates, 1947-57*,

124-125

by major type, annually 1946—57*, 151

data sources and estimating procedures, 74-82

for commodities

changes in methodology, 76—77

commodity composition—problem of error in, 76

commodity flow method

extension of benchmarks, new procedure, 76-77

nature of, 74

recommendations for improvement of, 102-103

use of

1951 and 1956, 78

1954, 77-78

for food, 78-79

methods other than commodity flow, 79

passenger car allocation, 80-82

quarterly series, 96-97

revisions, nature of, 71-72, 74

for services, 79-80, 97

quarterly series, 97

effect of revisions on income side of accounts, 80

total for 1954, adjustment of, 74-76

patterns, changes in postwar period

clothing share lower, 5

food share readjusted, 5

housing increases, 5

price shifts reflected, 4-5

and personal income, comparison of reliability of estimates, 75-76, 86-87

and personal income in kind^ major items of, annually, 1946^57*, 229

price deflators (implicit) for major types, annually 1946-57*, 228

relationship in postwar period to

disposable income, 3-4

gross national product, 4

personal income, 3-4

by type of product, annually 1946-57*, 150-151

by major type

percentage distributions in current and constant dollars, years 1929,

1947, and 1957*, 5

quarterly, 1946-57*, 154-155

quarterly totals seasonally adjusted at annual rates, 1946-57*, 154—155

Personal income

data sources and estimating procedures, 99-100

and disposition of

annually, 1929-57*, 144-145

quarterly totals seasonally adjusted at annual rates, 1946-57*.

146-147

gross national product and national income, relation to

annually, 1929-57*, 138-139

quarterly totals seasonally adjusted at annual rates, 1946—57*,

140-141

relation to national income discussed, 100-101

growth in postwar period, 3-4

monthly totals seasonally adjusted at annual rates, 1946-57*, 148-149

new data, nature and significance of, 54-55

and personal consumption expenditures

in kind, major items of, annually 1946-57*, 229

in postwar period, 3-4

by size

new data, nature and significance of, 55

published materials on, 48

see also Family income

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Federal Reserve Bank of St. Louis
INDEX 239

Personal income—Continued

by States and regions

annually, 1929-57*, 156-157

uses and significance of data, 54—55

average, annually 1929-57*, 158-159

in constant dollars

regional differences, 30-31

for years 1947 and 1957*, 31

defined, 27

industrial sources, 28-35

agriculture, 31-32

construction, private nonfarm, 35

government, 32-33

manufacturing, 34-35

mining, 35

nonfarm, annually 1947-57*, 36

trade and service, 35

for year 1957*, 38-39

long-term growth, 35-37

per capita

annually, 1929-57*, 158-159

geographic differences, 27-28, 37

and population, for selected years 1947-57*, 29

postwar changes, 30-35

published materials on, 48, 73

regional markets, growth and economic structure, 27-39

relation to national series, 55

similarity to disposable income in distribution, 28

see also Family income; Disposable income

Personal income and outlay

account, 1957*, 115

new data, nature and uses of, 54-55

statistical tables, list of, 109

see also Disposable income; Family income

Personal interest income

see Interest

Personal saving

annually, 1929-57*, 144-145

data sources and estimating procedures, 75, 99

defined, 99

future research, directions of, 62-64

quarterly totals seasonally adjusted at annual rates, 1946—57*, 146-147

Securities and Exchange Commission estimates of, and comparison with

Office of Business Economics estimates, annually 1946-57*, 194

discussed, 10-11, 64

sources and uses of

cumulative totals, 1947-57*, 11

in postwar period, 10—11

Personal services industry, statistics of income and employment in*, 130-131,

200-201, 203-207, 211-216

Petroleum and coal products manufacturing, statistics of income and employment in*, 130-131, 200-201, 203-207, 211-216

Pipeline transportation industry, statistics of income and employment in*,

130-131, 200-201, 203-207, 211-216

Plant and equipment outlays

see Gross private domestic investment

Population and personal income, by States and regions, selected years 1947-

57*, 29

Prices

implicit price deflators

for new construction activity, by major type, annually, 1946-57*, 228

for farm gross product

annually, 1929-57*, 226-227

discussed, 53

for gross national product

by major components

annually, 1929-57*, 220-221

quarterly totals seasonally adjusted at annual rates, 1947-

57*, 222-223

by legal form of organization, annually 1929-57*, 226-227

Prices—Continued

implicit price deflators—Continued

for gross national product—Continued

by major type of product

annually, 1929-57*, 222-223

discussed, 52-53

and purchaser, annually 1929 and 1947-57*, 225

for personal consumption expenditures, by major type of product,

annually 1946-57*, 228

for producers' durable equipment, by type, annually 1946-57*, 229

rise in postwar period, 16-17

shifts reflected in personal consumption expenditures, 4-5

see also Gross national product in constant dollars; Construction activity

in constant dollars; Disposable income in constant dollars; Personal

consumption expenditures in constant dollars; Personal income in

constant dollars

Printing, publishing and allied industries, statistics of income and employment in*, 130-131, 200-201, 203-207, 211-216

Private households, statistics of income and employment in*, 130-131, 200-

201, 211-214

Private pension and welfare funds, employer contributions to, annually

1929-57*, 126-127

Producers' durable equipment, private purchases of, annually 1929-57*,

118-119

in constant dollars

annually, 1929-57*, 118-119

quarterly totals seasonally adjusted at annual rates, 1947-57*, 124-

125

by product type, annually 1946-54*, 192

data sources and estimating procedures

adjustments to commodity flow estimates, 84

commodity flow method, 82

comparison with Plant and Equipment Survey, 83-84

quarterly estimates, 97-98

recommendations for improving, 103-104

reliability, considerations regarding, 82-83

revisions, 71-72

defined, 82

investment in

rise in postwar period, 9

financing of, 10—12

price deflators (implicit) for product types, annually 1946-54*, 229

quarteily, 1946-57*, 122-123

quarterly totals seasonally adjusted at annual rates, 1946-57*, 120-121

by product type

annually, 1946-54*, 192

new data, nature and uses of, 58-59

Product, gross national

see Gross national product

Production

number of persons engaged in, by industry, annually 1946-57*, 214

see also Gross national product; National income

Professional practitioners, income of

data sources and estimating procedures, 71, 80, 90

reliability of estimates, 75

Profits

see Corporate profits; Unincorporated enterprises, income of

Proprietors' income

annually, 1929-57*, 144-145

monthly totals seasonally adjusted at annual rates, 1946-57*, 148-149

quarterly totals seasonally adjusted at annual rates, 1946-57*, 146-147

see also Rental income of persons; Unincorporated enterprises,

income of

Radio broadcasting and television, statistics of income and employment

in*5 130-131, 200-201, 203-207, 211-216

Real estate industry, statistics of income and employment in*, 130-131,

200-201, 203-207, 211-214, 216-217

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Federal Reserve Bank of St. Louis
240 INDEX

Real income

see Family income in constant dollars; Personal income in constant

dollars

Real product

see Gross national product in constant dollars

Reconciliation items

see Relation of gross national product, national income and personal

income

Regional income

future research, directions of, 67—68

see also Personal income, by States and regions

Regional markets

differences in size and economic structure, 1957, 27—30

postwar growth in real and current-dollar terms, 30-31

industrial sources of income, 31-37

Relation of gross national product, national income, and personal income

annually, 1929-57*, 138-139

quarterly totals seasonally aajusted at annual rates, 1946-57*, 140-141

Reliability of estimates, general discussion, 70-76

see also Data sources and methods under title of particular series

Rental income of persons

annually, 1929-57*, 144-145

data sources and estimating procedures, 93, 100

owner-occupied nonfarm dwellings, 93

rented nonfarm property, 93

monthly totals seasonally adjusted at annual rates, 1946-57*, 148-149

quarterly totals seasonally adjusted at annual rates, 1946-57*, 146-147

see also Housing

Rental value of owner-occupied housing

see Housing

Repair services and hand trades, statistics of income and employment in*,

130-131, 200-201, 203-207, 211-216

Research program for future, 62—69

Rest of the world

income and product originating in

annually, 1929-57*, 134-135

in constant dollars, annually 1929-57*, 136-137

statistics of income and employment*, 130-131, 200-201, 203, 205-207,

210-214

see also Foreign transactions

Retail trade and automobile services industry, statistics of income and employment in*, 130-131, 200-201, 203-207, 211-217

Revisions

scope and overall results, 71-72

see also Data sources and methods

Rubber products manufacturing, statistics of income and employment in*,

130-131, 200-201, 203-207, 211-216

Sales, corporate, by industry, annually 1946-57*, 215

Saving and investment

future research, directions of, 62-65

financial institutions, 62-63

Government, 63—64

nonfinancial corporations, 62-63

persons, 63-64

new data, nature and uses of, 58-59

in the postwar period, discussed, 10-12

sources and uses of gross

annually, 1946-57*, 188

quarterly totals seasonally adjusted at annual rates, 1946-57*, 188-

189

Statistical tables, list of, 110

see also Gross saving and investment; Personal saving

Schools, commercial and trade, and employment agencies, statistics of income and employment in*, 130-131, 200-201, 211-214

Security and commodity brokers, dealers and exchanges, statistics of income

and employment in*, 130-131, 200-201, 203-207, 211-214, 216

Service industry, statistics of income and employment in*, 130-133, 200-207,

210-217

Services in the gross national product

see Gross national product, product types; Personal consumptioi

expenditures

Services allied to transportation, statistics of income and employment in*

130-131, 200-201, 203-207, 211-216

Social insurance contributions

annually, 1929-57*, 138-139

employer, by type, annually 1946-57*, 170

personal

annually, by type, 1946-57*, 170

data sources and estimating procedures, 100

monthly totals seasonally adjusted at annual rates, 1946-57*, 148-

149

quarterly totals seasonally adjusted at annual rates, 1946-57*, 146-

147

quarterly totals seasonally adjusted at annual rates, 1946-57*, 140-141

Social insurance funds, transactions of, annually 1946-57*, 170

Sources and uses of gross saving

see Saving and investment

Sources and methods of estimation

see Data sources and estimating procedures

State income

see Personal income by States

Statistical discrepancy

annually, 1929-57*, 138-139

and indications of estimating errors in personal income and expenditures,

74-75

quarterly totals seasonally adjusted at annual rates, 1946-57*, 140-141

Statistical tables

cross references to 1954 National Income supplement, 112-113

list of

foreign transactions, 110

government receipts and expenditures, 110

gross national product and national income, 109

income and employment by industry, 111

personal income and outlay, 109

saving and investment, 110

supplementary tables, 111

summary data for 1957, 114-116

Stone, clay, and glass products manufacturing, statistics of income and employment in*, 130-131, 200-201, 203-207, 211-216

Subsidies minus current surplus of government enterprises

annually, 1929-57*, 138-139

quarterly totals seasonally adjusted at annual rates, 1946-57*, 140-141

Supplements to wages and salaries

by industry division, annually 1946-57*, 202

quarterly totals seasonally adjusted at annual rates, 1946-57*, 128-129

by type, 1929-57*, 126-127

revisions discussed, 87

by type, annually 1929-57*, 126-127

Survey of Current Business: supplements and articles relating to

family income, 48, 73

national income and gross national product, 47—49

personal income, 48, 73

T

Taxes

corporate Federal and State income tax liability

by industry annually 1946-57*, 204

quarterly, 1946-57*, 230-231

quarterly totals seasonally adjusted at annual rates, 1946-57*,

128-129

relation to Internal Revenue Service tabulations annually 1946-55*,

230

indirect business tax and nontax liability

annually, 1929-57*, 138-139

data sources and estimating procedures, 101

quarterly, 1946-57*, 168-169

quarterly totals seasonally adjusted at annual rates, 1946-57*,

140-141

for specified taxes, annually 1946-57*, 164-165

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Federal Reserve Bank of St. Louis
INDEX 241

Taxes—Continue d

personal tax and nontax payments

annually, 1929-57*, 144-145

data sources and estimating procedures, 99

quarterly totals seasonally adjusted at annual rates, 1946-57*,

146-147

for specified taxes, annually 1946-57*, 164-16 5

Telephone and telegraph industries, statistics of income and employment

in*, 130-131, 200-201, 203-207, 211-216

Textile-mill products manufacturing, statistics of income and employment

in*, 130-131, 200-201, 203-207, 211-216

Tobacco manufactures, statistics of income and employmert in*, 130-131,

200-201, 203-207, 211-216

Trade, wholesale and retail, statistics of income and employment in*,

130-133, 200-207, 210-217

Transfer payments

business, received by persons

by type, annually 1929-57*, 134-135

data sources and estimating procedures, 100

government, received by persons, annually 1946-57*, 171

increase during postwar period, 6-7

monthly totals seasonally adjusted at annual rates, 1946-57*, 148-149

by major type

annually, 1929-57*, 144-145

quarterly totals seasonally adjusted at annual rates, 1946-57*,

146-147

Transportation industry, statistics of income and employment in*, 130-133,

200-217

Transportation equipment manufacturing, except automobiles, data statistics of income and employment in*, 130-131, 200-201, 203-207, 211-216

u

Undistributed corporate profits

by industry, annually 1946-57*, 207

Unincorporated enterprises, income of

data sources and estimating procedures

annual estimates, 89-92

monthly estimates, 100

by industry division, annually 1946-57*, 202

professional practitioners, 71, 75, 80, 90

quarterly totals seasonally adjusted at annual rates, 1946-57*, 128-129

revisions, nature and scope of, 71, 89-92

Utilities: electric and gas, statistics of income and employment in*, 130-131,

200-201, 203-207, 211-216

w

Wage and salary disbursements

annually, 1929-57*, 144-145

data sources and estimating procedures, 99-100

monthly totals seasonally adjusted at annual rates, 1946-57*, 148-149

quarterly totals seasonally adjusted at annual rates, 1946-57*, 146-147

Wages and salaries

average annual per full-time employee, by industry, annually 1946-57*,

213

data sources and estimating procedures

industries covered by social security programs, 87-89

industries not covered by social security programs, 89

by industry, annually 1946-57*, 201

quarterly totals seasonally adjusted at annual rates, 1946-57*, 128-129

revisions, nature and scope of, 71, 87-89

Wages and salaries, supplements to

see Supplements to wages and salaries

Water transportation, statistics of income and employment in*, 130-131,

200-201, 203-207, 211-216

U. S. GOVERNMENT PRINTING OFFICE : 1959 O -466759

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Federal Reserve Bank of St. Louis