Evening star., 1953-11-26
Record Output
Seen for s. by
Reserve Board
Personal Income,
Gross Product Set
New National Peaks
BY the Associated Press

Inc FEDERAL Reserve Board
said today the Nation lifted it.
self to new level of good living
in calendar 1858.
In it's monthly bulletin, the
Reserve Board predicted that
gross national productive to-
tai value of all goods and serv-
ices produced-will total about
1868 billion this year.
That is a record, both in
terms of dollar value and the
outpouring of production, and
is 5 per cent more than last year.
Personal income will also set
a record this year. the board
said. at about $285 billion, 6
per cent over the previous record
set last year.
Farm Decline Noted.
Farm income was about the
only downward line on the
boards charts of economic con-
ditionS from January to Deem
ber in 1858. The report said the
income of farm proprietors has
declined markedly" and is back
at the postwar low reached in
1949, about $16,250,0O0,O00.
The board divided the year
into winter and spring boom
period, followed by gradual
letdown in the summer and fall.
Evan Clague, head of the Bu-
reau of Labor Statistics, said
yesterday the Nations inf1ation-
ary period appears to be at an
end. He said the bureaus index
of living costs, at a record high
in October for the fifth straight
month, may decline in the COM
ing winter months.
Inventories Limited.
Since midyear the Reserve
Board said, businessmen have
slowed the growth of their in
ventorieS. which resulted in
fewer new orders and has been
the chief factor in the slight eco
nomic downturn-about l per
eent-Since the spring high.
THE year as whole will be
one of substantial achievement
in terms of utilization of man
power and industrial resources,
additions to productive capacity,
higher consumer standards, and
overall stability of prices" the
board said.
"Since mid-year, however, de-
mands have eased and some de-
clines have occurred in output
and employment"
The board said the economy
would have to look to civilian
buying next year to take up
some defense slack.
Wholesale Prices Stable.
Some other high lights of the
boards report in 1858:
i. AfCI dSC WAlOACScN4C ~ 4SCS
have been remarkably stable =.
consumer prices have increased
steadily but in October were
only about l per cent higher
than a year ago"
2. Federal expenditures for
national security programs are
estimated to be only moderately
larger this year, accounting for
about one-seventh of total out
put. State and local Govern
ment purchases will be in record
amount, about 7 per cent larger
than in 1852"
3. For the full year, business
outlayS for fixed Investments
construction of facilities and
durable equipment - may be
about 5 per cent above the rec
ord of 1852"
4. The increase in business in
ventories lis likely to approx
mate SIS billion, as compared
with So billion in 1882
B. Spending for non-tarm resi-
dental construction has declined
about 10 per cent during the
year. The total number of houS-
ing units started will be about
100000, about the same as in
1852 and 1851.
6. Funds for mortgages, tight
earlier in the year, have become
more plentiful.
Z. Purchases of new automo-
biles has accounted for the bulk
of the years increase in spend
ing. Passenger car output in
1858 is estimated at 100000,
second only to the record of g.
100000 in 1850.
8. Spending for clothing and
shoes. up sharply in 1852, fell
off in 1858. Dollar outlay for
food and beverages rose at a
much slower rate. A sharp re-
duction in retail beef prices
helped raise the per capita meat
consumption to ISL pounds, 5
per cent above 1852.