Evening star., 1951-12-31
u. 5. Output Of Goods,
Services Rises IS Pei.
In 1851 10 New Record

'm I1Ol 10 NeW kecOIQ
The value of the Nations out
put of goods and services this year
will reach the record figure Of
$327 billion, Is per cent more than
in 1850, according to Secretary Of
Commerce Sawyer.
But the average citizen, with
more money than ever before. put
more in the bank than at any
time since 1945. He bought
slightly less despite the increase
in his earnings and In the supply
of consumer goods.
Year-end reports by Secretary
Sawyer, the Securities and Ex-
change Commission and the Fed
eral Trade Commission also
showed that manufacturers prof
its fell Is per cent before taxes
and % per cent after taxes be-
tween the second and third
quarters Of this year.
The SSH billion in sales by
manufacturing corporations dur
ing the third quarter was $2.6 bill
lion below the total for the second
quarter. It nevertheless was $2.5
billion above a year earlier. Busi-
ness inventories of goods totaled
$40 billion, an ail-time high.
First Drop Since 1949.
The decline in profits was the
first since 1949. Profits continued
"a sagging trend which began last
December. During the third quar-
ter they amounted to $50 billion
before Federal income and excess
profits taxes and S2.4 billion after
taxes.
Only four of % major indus
tries showed higher profits before
taxes in the third quarter, the
SEC reported. These were petro-
leum, food, tobacco and apparel
and finished textiles. The only
one to show more profits after
taxes was apparel and finished
textiles, for a gain of IA per cent.
Textile mill products, however,
slumped 54 per cent.
| Secretary Sawyer said the in
crease in personal savings helped
hold down imitation during 1861.
He warned that any splurge in
buying would set off a skyrocket.
He recommended a pay-as-you-go
defense program insofar as pos
Sible."
About half of the gain over 1850
In the total output of goods and
services represents an increase in
volume and about half represents
higher prices, the Secretary said
IN his year-end economic review.
Personal Income Rises.
Some of the highlights in his
report were these:
Personal income totaled S25I
billion in 1851 and at the end of
the year 1t was at the annual rate
OF $3.50 billion. The total for 1850
was 1925 billion.
After the heavy wave Of buying
early in the year, consumers re-
duced their purchases. In the
final three months of this year
spending for personal consump-
ton will be three per cent below
the first quarter rate although dis
posable income will be about three
per cent higher.
Reduced buying has resulted in
a relatively high ratio of saving
to spendable income-roughly 10
per cent compared with the I947-
1850 average of four per cent.
During the year the increase in
production slackened and in the
final quarter the volume was only
about five per cent above the final
quarter of 1850.
Defense Spending Doubles.
The outstanding feature in the
years business expansion was the
doubling Of Federal defense SPEND
ing. In the final quarter of 1850
1T was at an annual rate of $40
billion and it rose to an annual
rate of $40 billion in the final
quarter of this year.
Defense orders now outstanding
amount to about $40 billion, with
another $33 billion in unobligated
funds. Deliveries of military end
items and new construction under
the defense program have amount
ed to SIG billion this year.