SCB_051976

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1976 / VOLUME 56 NUMBER

SURVEY OF CURRENT BUSINESS

CONTENTS

THE BUSINESS SITUATION 1

Price of the SURVEY OF CURRENT BUSINESS 1

Revised First Quarter GNP 1

National Income and Product Tables 3

Manufacturing and Trade Inventories andSales in Constant Dollars, 1959 to First Quarter 1976 11

Sales by Majority-Owned Foreign Affiliatesof U.S. Companies, 1974 25

Benchmark Survey of Foreign Direct Investmentin the United States, 1974 35

ERRATA 52

CURRENT BUSINESS STATISTICS

General S1-S24

Industry S24-S40

Subject Index (Inside Back Caver)

U.S. Department of Commerce

Elliot L. Richardson / Secretary

Bureau of Economic AnalysisGeorge Jaszi / DirectorMorris R. Goldman / Deputy Director

SURVEY OF CURRENT BUSINESSEditorial Board: Jack J. Batne, Carol S. Carson,John E. Cremeans, Martin L. Marimont, BeatriceN. Vaccara, Charles A. Waite, Allan H. Young

Editor: Dannelet A. GrosvenorStatistics Editor: Leo V. Barry, Jr.Graphics Editor: Billy Jo HurleyContributors To This Issue: William K. Chung,David T. Dobbs, Gerald F. Donahoe, Shelby W.Herman, John C. Hinrichs, Allan H. Young,International Investment Division

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S.C., Columbia 292042611 Forest Dr. 765-5345

TENN., Memphis 38103147 Jefferson Ave. 534-3213

TEX., Dallas 752021100 Commerce St. 749-1515

TEX., Houston 77OO21017 Old Federal Bldg. 226-4231

UTAH, Salt Lake City 84138125 South State St. 524-5116

VA., Richmond 2324O8010 Federal Bldg. 782-2246

WASH., Seattle 981O9Rm. 706 Lake Union Bldg. 442-5615

W. VA., Charleston 25301500 Quarrier St. 343-6181

WIS., Milwaukee 532O2517 E. Wisconsin Ave. 224-3473

WYO., Cheyenne 820O12120 Capitol Ave. 778-2220


the BUSINESS SITUATION

LEVISED estimates put the real in-crease in first-quarter GNP at 8% per-cent, as compared with 7% percentshown last month. With inflation asmeasured by the GNP implicit pricedeflator remaining at 3% percent, theincrease in current-dollar GNP is 12%percent, also up 1 percentage point fromthe preliminary estimates.

The principal factor in the upwardrevision is a somewhat higher estimateof inventory accumulation. Revisions infinal sales are also small. An upwardrevision of the services component ofpersonal consumption expendituresreflects higher estimates for electricityand medical care. The fractional up-ward revision in nonresidential fixed

investment is spread across all of itsmajor components. Revisions in exportsand imports are largely offsetting.There are offsetting upward revisions inmerchandise exports and imports, andthe net outflow of foreign investmentincome is a little larger than in thepreliminary estimates.

First-quarter 1976 corporate profitsPreliminary estimates show that

profits from current productioncor-porate profits with inventory valuationand capital consumption adjustmentswere up $9 billion at a seasonallyadjusted annual rate from the fourthquarter of 1975. The increase was

largely in domestic profits of nonfinan-cial corporations, which were up about$7 billion. Domestic profits of financialcorporations and profits from abroadaccounted for the rest of the increase.

The increase in domestic profits ofnonfinancial corporations was wide-spread. The bulk was in manufacturing,where profits increased in both durableand nondurable manufacturing. Thelargest gains appear to have been inprimary metals, motor vehicles, food,and petroleum.

Before-tax book profits were up $8%billion from the fourth quarter of 1975.These profits differ from profits fromcurrent production for two reasons.First, they reflect tax-return based

Price of the SURVEY OF CURRENT BUSINESS

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Please address your comments to:The DirectorBureau of Economic AnalysisU.S. Department of CommerceWashington, D.C. 20230


SUEVEY OF CUKEENT BUSINESS May 1976

capital consumption allowances, ratherthan "economic" capital consumptionallowances that are based on uniformservice lives and depreciation formulasand replacement cost valuation. Second,they include inventory profits, whicharise because inventories used up arevalued at historical rather than atreplacement cost. The effects of thesedifferences on the change in profitswere largely offsetting in the firstquarter.

Profits from current production haveincreased more than 50 percent fromthe recession low of $79 billion in thefirst quarter of 1975, to $122 billionin the first quarter of 1976. Before-taxbook profits show almost as large anincrease. They were up 45 percent,from $97 billion to $141 billion.

Federal sector of NIPA's in the firstquarter

The economic recovery was reflectedin a decrease in the Federal deficit asmeasured in the NIPA's. Substantialincreases in profits and wages helpedboost receipts $10 billion; decliningunemployment and slowing inflationlimited the increase in expenditures to$7 billion. As a result, the deficitamounted to $69 billion at an annual

rate, $3 billion below the $72 deficit inthe fourth quarter.

The deficit for fiscal 1976 as a wholewill be below the January budgetestimate (see the February SURVEY fordiscussion of the budget). Expenditureswill be lower and receipts higher thanpreviously estimated. The Treasury hasreduced its earlier estimate of fiscal1976 borrowing about $5 billion.

Almost all of the first-quarter in-crease in receipts was due to economicrecovery. Tax changes increased socialinsurance contributions and corporatetaxes, and reduced indirect businesstaxes and personal taxes, but thesechanges had little impact on totalreceipts. Social insurance contributionsrose about $6% billion, including over$2 billion attributable to an increasein the maximum taxable earnings forsocial security from $14,100 to $15,300,and almost $2 billion to higher averagerates for employers paying unemploy-ment insurance contributions. Corpo-rate taxes rose $3% billion, includingabout $% billion due to provisions ofthe Tax Eeduction Act of 1975, mainlyrelating to foreign tax credits andforeign income deferral. Personal taxesrose $2% billion, despite heavy refundsstemming from the home purchasecredit and earned income credit pro-visions of the Tax Eeduction Act of

1975. Indirect business taxes fell $2%billion, largely because of terminationin late December of the $2 per barrelpetroleum import fee; the telephoneexcise tax was reduced from 7 percentto 6 percent effective January 1.

Most of the increase in expenditureswas in transfer payments. They in-creased over $5H billion, including $2billion due to the earned income creditsand $1 billion due to a speedup in lifeinsurance dividends paid to veterans.Cost-of-living increases raised paymentsfor food stamps, military retirement,and certain other programs. The in-creases were relatively small, reflectingthe slower growth in consumer prices.Unemployment insurance benefits de-clined. Grants-in-aid to State and localgovernments increased nearly $1% bil-lion, mainly due to welfare programs.Purchases and interest payments in-creased moderately. Slowing inflationalso was a factor limiting growth ofpurchases. Subsidies (less the currentsurplus of government enterprises) de-clined nearly $2 billion, principally dueto the December increase in postal rates.

Special table

The reconciliation of changes incompensatioD per hour and averagehourly earnings is shown in table 1.

Table 1.Reconciliation of Changes in Compensation Per Hour and Average HourlyEarnings, Private Nonfarm Economy, Seasonally Adjusted

1. Compensation per hour of all persons (percent change at annual rate)2. Less: Contribution of supplements _ . - - .. .3. Less: Contribution of employees of private households and government enterprises and

self-employed and unpaid family workers4. Equals: Wages and salaries per hour, all employees except private households and gov-

ernment enterprises (percent change at annual rate)5. Less: Contribution of supervisory and nonproduction workers, non-BLS data, and de-

tailed weighting, totalCommodity-producing industries - _ - .

M anuf acturingD istributive industriesService industries - . . - - . - - _ . . -

6. Equals: Average hourly earnings, production and nonsupervisory workers, obtainedfrom seasonally adjusted industry components (percent change at annual rate) - .

7. Less* Contribution of seasonal adjustments by industry8. Equals: Average hourly earnings, production and nonsupervisory workers (percent

change at annual rate) - - - - -

I

9.1.9

5

8 7

2 6

2.39

.3

.0

6.1

1.1

7.2

19

II

6.8.2

1

6 5

1 0.55

.2

.3

5.5

.3

5.2

75

III

8.7

.0

.9

7 8

o

-.7 7

.3

.4

7.8

.5

7.3

IV

6.5.1

.2

6 6

1.5-.6

.0-.1-.8

8.1

-.3

8.4

1976

I

7.61.4

-.2

6.4

-.5-.5-.5-.1

.1

6.9

-.7

7.6


May 1976 SURVEY OF CUEEENT BUSINESS

NATIONAL INCOME AND PRODUCT TABLES

1974 1975

1974

IV

1975

I II III IV

1976

I*

Seasonally adjusted at annual rates

Billions of current dollars

1974 1975

1974

IV

1975

I II III IV

1976

I*


Billions of 1972 dollars

Table 1.Gross National Product in Current and Constant Dollars (1.1, 1.2)

Gross national product

Personal consumption expenditures

Durable goodsNondurable goods - _ -Services

Gross private domestic investmentFixed investment

NonresidentialStructuresProducers' durable equipment

ResidentialNonfarm structures - -Farm structures.-. ... . .. .. . _Producers' durable equipment

Change in business inventories _NonfarmFarm

Net exports of goods and servicesExports . . - . . -Imports

Government purchases of goods and servicesFederal.-. . . .._ .-.

National defenseNondefense

State and local . .- -.. .. _ ..

1,406.9

885.9121.9375.7388 3

212 2

202 5147 954 493 554 652 21.01 3

9 711 6

1 9

7.7

144.2136.5301.1

111.777 434.3

189.4

1, 498. 9

963.8

128.1409.8426 0

182.6197 3148.552.795.848.746.8

.61 3

14.616 5

1 921.3

147.8126.5331.2

123.284 039 2

208.0

1,441 3

908.4117 3387.1404 0

210 3

199 8151 156 195 048 746 31.21 3

10 413 7

3 2

8 2

153.6145.3314.4

118.280 537.7

196.3

1 433 6926.4

118 9394 1413 4

168 7

193 5149 354 994 444 242 6

41 2

24 823 3

1 517 3

148.2130.9321.2

119.481 438 0

201.9

460 6

950.3123 8404 8421 6

161 4191 1146 151 195 045 043 1

.51 3

29 629 6_ i

24 2

140.7116.4

324.7

119.282 137.1

205.5

528 5977.4

131 8416.4429 2

194 9

197 1146 751 295 650 448 2

g1 4

2 15 7

3 622 1

148.5126.4334.1

124.284 939 3

209.9

1 572 9

1 001.0

137 6423 7439 7

205 4207 4151 953 698 355 453.3

71 4

2 07 5

5 621 7

153.8132.1

344.8

129.987 442.5

214.8

1 619 21, 029. 6

145.9430 8452 9232 2

216 7158 155 5

102 658.656.5

.71 5

15.511 34 2

8.2

153.1145.0349.2

131.187.044.1

218.1

1,210 7

759.8112 5303 0344 4

180 0172 2127 542 784 944 742 6

81 3

7 78 5

.,_ g

16 6

97.681.0

254.395.0

159.3

1 186 1766.9

109 5306 6350 7138 3

148 8112 237 275.136.635.0

.41 i

10.511 8

1 323.4

90.667.2

257.6

94.3

163.3

1 186 8

748.9102 9298 9347 2

166 9159 3120 840 580.338.536.4

.91 2

7.69 0

1 517.4

95.778.3

253.694.7

158.9

158 6752.3

104 0300 8347 5129 7

148 7115 238 976 333 632 3

.31 0

19.0 17 9

1 2

21.590.769.2

255.1

93.7

161.4

1 168 1

764.1

106 5306 9350 8124 1

144 8110 836 274 734 032 4

.41 i

20 720 6

_ i

24.9

86.862.0

254.992.4

162.5

1 201 5

771.6112 3308 0351 2147 8148 7110 636 274 538 036 2

.61 2

.83 3

2 5

23.5

90.867.3

258.794.9

163.8

1 216 2779 4

115 3310 7353 3

151 4153 0112 337 474 940 739 0

.51 2

1 65 3

3 723 8

94.070.2

261.6

96.1

165.5

1 241 2

794 5120 8315 7358 0168 1157 5115 538 577.042.040.2

.51.2

10.77.82.9

16.893.276.4

261.7

95.8

165.9

Table 2.Gross National Product by Major Type of Product in Current and Constant Dollars (1.3, 1.5)


Final salesChange in business inventories

Goods

Final sales ...Change in business inventories

Durable goods _.Final salesChange in business inventories

Nondurable goods.-.Final salesChange in business inventories

ServicesStructures

1,406.91 397.2

9 7

636 3626.5

9.7246 1238 5

7 5

390.2388 0

2 2

624 1146 6

1,498.9

1 513 5 14.6676 3

690.914.6251.1261 7

10 6425.2429 24 0

681 3141 3

1,441.31 430 9

10 4

647 7

637 310.4

254 1239 3

14 9

393.6398 04 4

649 7143 9

1,433.61 458 4

24 8

635 4660 2

24.8229 2243 8

14 6406.2416 4

10 2

659 3138 9

1,460.61 490 2

29 6

653 9683 5

29.6243 3258 8

15 5410.6424 7

14 1

672 0134 6

1,528.51 530 6

2 1

698 9701 1_9 I

261 9267 55 6437.0433 5

3 5688 1141 4

1, 572. 9

1 574 92 0

716 8

718 72.0

269 9276 7 6 8

446 9442 l

4 8705 9

150 3

1,619.2

1 603 815 5

739 4723 915.5

277 5282 04 6

461.9441 920 0

725 8154 1

1,210.7

1 203 07 7

549 9

542 27 7

223 5217 7

5 8326 5324 5

1 9

544 7116 1

1, 186. 1

1 196 6 10.5530 1

540.710.5203.4211 47 9326.7329 32 6554 4101 5

1, 186. 81 179 3

7.6

531 9524.4

7.6215.9205 2

10 7

316.1319 2-3.1

548 1106 8

1,158.61 177.6

19.0510 1529.2

-19.0191.6203 4

11.7

318.5325 8-7.3548 1100 4

1, 168. 11, 188. 7

20.7

518.4539.0

-20.7198.2209 7

11.5320.2329.4-9.2

552.597.2

1,201.51, 202. 4

-.8

542.7543.5-.8

210.7214.3-3.7

332.0329.2

2.8

556.7102.2

1, 216. 2

1, 217. 8-1.6549.4

551. 0-1.6213.3218.1-4.7

336.1332.9

3.1560.3106.4

1,241.2

1, 230. 510.7

566.8556.210.7

218.3221.4-3.1348.5334.813.7

566.6107.7

Table 3.Gross National Product by Sector in Current and Constant Dollars (1.7, 1.8)

Gross national productGross domestic product

Business.Nonfarm vFarm_ _Statistical discrepancyKesidualfi

Households and institutionsGovernment _ _

Federal.,State and local

Rest of the world

1,406 91,392 51 186 61 138 7

48 5 6

44.8

161 154 7

106 414 4

1 498 91 488 4

1 262 61 215 2

50 12 6

49 5176 358.8

117 4

10 5

1 441 3

1 426 61 13 21 161 7

48 62 9

46 5166 956 9

110 0

14 8

1 433 61 424 01 205 51 162 9

45 83 2

47 5170 9

57 6113 3

9 6

1 460 61 450 61 227 41 191 3

45 18 9

48 7

174 558 1

116 410 0

1 528 51 516 91 289 21 237 5

55 03 2

50 2

177 458 6

118 8

11 6

1 572 91 562 21 328 31 269 0

54 45 0

51 6182 261 0

121 2

10 7

1 619 21 607 71 369 51 312 1

52 15 3

52 9

185 361 6

123 7

11 5

1 210 7

1 203 71 024 4

993 531 5 . 5

38 5140 847 992 97 o

1 186.11 181 3

997.1964 035 1-2.1

39.2

145 147 897 34.8

1,186 81,180 31 000.1

965 831.92.4

38.4

141 847.994 0

6.5

1, 158. 61, 154. 3

972.1939 635.0-2.6

38.8

143.547.995 74.3

1, 168. 11, 163. 5

979.5954.332.3

-7.1

39.2

144.847.897.0

4.5

1,201.51, 196. 11,011.1

977.136.5-2.539.4

145.747.897.85.4

1, 216. 21,211.31,025.7

985.136.83.9

39.2

146.347.798.74.9

1,241.2

1, 236. 11,049.41, 007. 4

38.04. 1

39.8146.947.699.3

5.1

First quarter corporate profits (and related components and totals) are preliminary andsubject to revision next month.1

Preliminary.1. Equals GNP in constant dollars measured as the sum of final products less GNP in

constant dollars measured as the sum of gross product by industry.

NOTE.Final sales is classified as durable or nondurable by type of product. Change inbusiness inventories is classified as follows: for manufacturing, by the type of product pro-duced by the establishment holding the inventory; for trade, by the type of product sold by theestablishment holding the inventory; for construction, durable; and for other industries,nondurable.


4 SUEVEY OF CUKRENT BUSINESS May 1976

1974 1975

1974

IV

1975

I II III IV

1976

I *



1974 1975

1974

IV

1975

I II III IV

1976

I*



Table 4. Net National Product and National Income by Sector in Current and Constant Dollars (1.11, 1.12)

Net national product _Net domestic product _

BusinessNonfarm1' ...- _ _ _ _ .Farm.

Statistical discrepancy. ._ _Residual L _ _. .. . _

Households and institutionsGovernment

Rest of the world _ ,.-National income

Domestic income.Business

Nonfarm . _ . .Farm


Rest of the world

1,272.91,258.51, 052. 51, 014. 7

38.5-.6

44.8161.114.4

1, 141. 1

1, 126. 7920.8884.036.7

44.8

161.114.4

1, 346. 9

1,336.41,110.61,073.9

39.3-2.6

49.5176.310.5

1,207.81, 197. 3

971.5934.736.8

49.5176.3

iO.5

1,299.31,284.51, 071. 1

1, 030. 038.2

2.946.5

166.9

14.8

1,161.31, 146. 5

933.1896.936.2

46.5166.9

14.8

1,288.2

1,278.61, 060. 2

1, 028. 035.3

-3.2

47.5170.9

9.6

1} 155. 21, 145. 6

927.1894.232.9

47.5170.9

9.6

1,311.11,301.11, 078. 0

1, 052. 434.5-8.9

48.7174.510.0

1, 180. 8

1,170.8947.6915.731.9

48.7174.510.0

1,373.81,362.11, 134. 51, 093. 5

44.2

-3.2

50.2177.4

11.61,232.51,220.9

993.3951.741.550.2

177.4

11.6

1,414.4

1,403.6

1, 169. 8

1,121.443.4

5.051.6

182.2

10.7

1, 262. 6

1, 251. 9

1, 018. 0

977.340.7

51.6182.2

10.7

1,456.11,444.61, 206. 4

1, 160. 140.9

5.352.9

185.311.5

1,301.31, 289. 71,051.51, 013. 3

38.2

52.9185.311.5

1,094.01,087.0

907.7884.823.5

-.538.5

140.8

7.0

977.4970.4791.0

766.125.0

38.5140.8

7.0

1,063.81,059.1

874.8849.927.0

-2.139.2

145.14.8

947.8943.1

758.8730.228.639.2

145.14.8

1,067.61,061.2

880.9854.823.7

2.438.4

141.8

6.5948.5942.0761.7736.6

38.4

141.8

6.5

1,038.51,034.3

852.0827.626.9

-2.638.8

143.5

4.3

924.7920.4738.1

709.428.7

38.8

143.54.3

1,046.81,042.3

858.2841.224.2

-7.139.2

144.8

4.5935.9931.4

747.3721.625.739.2

144.8

4.5

1,078.61,073.2

888.2862.328.4

-2.539.4

145.7

5.4962.7957.3772.3742.330.0

39.4

145.75.4

1,091.41,086.5

900.9868.528.6

3.939.2

146.34.9

968.1963.2777.6747.630.0

39.2

146.34.9

1,115.41, 110. 3

923.7889.829.8

4.139.8

146.95.1

990.8985.7799.1

767.831.2

39.8146.9

5.1

Table 5. Auto Output in Current and Constant Dollars (1.16, 1.17)

Auto outputFinal sales... . . .

Personal consumption expendituresNew autos.Net purchases of used autos _. ._ _ _

Producers' durable equipmentNew autos.Net purchases of used autos

Net exports ,-.Exports.. _. ..Imports

Government purchases of goods and servicesChange in inventories of new and used autos

NewUsed

Addenda:D omestic output of new autos 2.Sales of imported new autos 3_ . ._

42.942.1

36.427.68.77.8

11.7-3.9-2.7

4.67.3.6.8

.8

.0

35.49.0

44.545.6

37.329.57.89.2

12.9-3.8-1.6

5.57.1.7

-1.1

-1.6.5

36.810.7

40.638.532.423.39.16.8

10.6-3.8-1.3

5.36.6.6

2.2

2.5-.3

35.38.3

34.640.7

33.727.46.27.9

10.8-3.0-1.5

4.76.2.6

-6.1

-6.5.4

27.510.9

42.543.0

34.526.97.68.7

12.2-3.4-.95.26.2.7

-.4

-.6.2

34.710.8

53.048.539.431.08.4

10.715.1

-4.5-2.2

5.88.0.7

4.53.7.8

45.610.3

47.650.141.732.89.09.5

13.7-4.2-1.9

6.38.2.7

-2.4

-3.1.7

39.510.6

58.456.848.038.89.2

10.815.0

4.22.8

6.08.8.7

1.6

1.0.6

49.510.3

40.239.633.426.27.27.5

11.1-3.6-1.8

6.2.6.6.6.0

33.48.5

39.440.331.725.76.18.5

11.2-2.7-.55.3.6

-.9

-1.3.4

32.09.3

36.133.8

27.520.96.76.49.5

-3.1-.7

5.4.5

2.4

2.6-.3

31.77.4

32.137.3

29.924.55.47.59.7

-2.2-.64.7.5

-5.2-5.5

.3

24.79.7

38.038.1

29.523.56.18.0

10.6-2.6

.0

4.6.5.0

-.2.1

30.49.4

46.542.833.226.96.3

10.013.1

-3.1-1.0

5.06.0.6

3.7

3.2.5

39.58.9

40.843.0

34.327.86.58.7

11.6-2.9-.55.35.8.6

-2.2

-2.7.5

33.49.0

49.248.3

39.232.27.09.7

12.5-2.81.1

5.16.2.6.9

.5

.4

41.18.6

Table 6. Personal Consumption Expenditures by Major Type of Product in Current and Constant Dollars (2.3, 2.4)

Personal consumption expenditures. _.Durable goods

Motor vehicles and parts. ._ ._Furniture and household equipmentOther

Nondurable goodsFoodClothing and shoes _ _ _ _ _ __ _Gasoline and oilFuel oil and coalOther

Services . .HousingHousehold operation

Electricity and gasOther.

Transportation

885.9121.948.054.719.3

375.7189.465.236.49.5

75.2388.3136.056.424.032.3

30.9165.0

963.8128.1

49.557.421.1

409.8209.169.940.310.280.3

426.0148.863.328.734.634.1

179.8

908.4117.343.654.319.4

387.1

197.464.838.89.8

76.1

404.0140.759.226.233.032.1

172.0

926.4118.944.654.120.2

394.1

202.866.738.19.4

77.1

413.4

143.960.627.333.3

33.0175.9

950.3123.846.157.020.8

404.8206.669.039.610.179.5

421.6147.063.128.934.2

33.5177.9

977.4131.852.158.321.4

416.4211.471.341.211.181.5

429.2150.264.729.835.034.2

180.1

1,001.0137.655.160.422.2

423.7215.672.542.110.483.1

439.7154. 164.928.936.0

35.5185.2

1, 029. 6145.962.161.322.6

430.8219.373.542.211.384.6

452.9157.867.030.736.336.4

191.8

759.8112.544.4

50.517.6

303.0147.159.024.65.2

67.0344.4122.848.419.728.8

28.5144.7

766.9109.542.449.317.9

306.6150.261.225.95.2

64.1

350.7127.449.420.429.028.4

145.5

748. 9102.937.748.217.0

298.9146.457.126.55.1

63.8347.2124.348.820.228.628.3

145.8

752.3104.0

39.647.117.3

300.8148.258.726.15.0

62.8347.5125.548.720.328.528.4

144.9

764.1106.539.849.117.6

306.9150.760.926.35.3

63.7350.8126.949.920.928.928.3

145.8

771.6115.344.449.918.0

308.0150. 262.125.45.5

64.8351.2128.049.920.829.228.2

145.1

779.4112.345.751.018.5

310.7

151.862. 925.85.0

65.3353.3129.349.219.729.4

28.8146.1

794.5120.851.251.118.6

315.7155.163.226.85.5

65.1358.0130.649.920.829.028.9

148.6

* See footnote on page 3.p Preliminary.1. Equals GNP in constant dollars measured as the sum of final products less GNP in

constant dollars measured as the sum of gross product by industry.

2. Final sales and change in inventories of new autos produced in the United States.3. Consists of personal consumption expenditures, producers' durable equipment, ana

government purchases.


May 1976 SURVEY OF CURRENT BUSINESS

Table 7.Inventories and Final Sales of Business in Current and Constant Dollars (5.9, 5.10)

Inventories *

FarmNonfarm

Durable goods -Nondurable goods . . -

M anuf acturing

Durable goods - - - -Nondurable goods

Wholesale trade - - - - - - -

Durable goodsNondurable goods

Retail trade ... . - . - - . .

Durable goodsNondurable goods - -

Other

Final sales ~

Nonfarm

Ratio of inventories to final sales -Nonfarm

1974 1975

1974

IV

1975

I II III IV

1976

I*

Seasonally adjusted


422.3

57.6364.8

205.4159.3188.6121.267.4

66.338.627.7

76.535.141.4

33.4

1,202.7

1, 148. 0

.351

.318

412.6

54,7357.9203.0154.9186.6

121.665.065.1

38.826.373.3

32.540.8

32.91,230.4

1, 186. 2

.335

.302

413.1

60.3352.8199.4153.4

183.6

119.963.6

63.o

38.125.772.4

31.640.8

33.01,257.0

1, 220. 8

.329

.289

423.764.1

359.7

202.0157.6186.1120.265.965.138.426.7

75.333.441.9

33.11,291.4

1, 243. 2

.328

.289

426.363.2

363.1

204.7158.4188.5121.267.3

65.739.326.4

74.933.641.3

34.1

1,330.3

1,276.5.320.284

433.564.2

369.3206.5162.7190.2

121.768.5

67.340.227.1

77 2

33.943.3

34.61,354.01, 300. 8

.320

.284

1974 1975

1974

IV

1975

I II III IV

1976

I*

Seasonally adjusted


301.1

41.4259.7151.5108.2

129.5

86.343.2

48.1

29.518.6

59.227.931.322.9

992.5956.8

.303

.271

296.441.2

255.2

148.6106.7

128.8

86.442.4

47.2

29.417.8

56.625.431.3

22.6991.1

957.5.299.267

291.2

41.1250.1145.7104.4

126.485.241.2

45.828.817.055.524.630.9

22.31,000.1

974.9

.291

.257

291.0

41.8249.3144.8104.5125.183.641.545.628.417.2

56.425.530.922.1

1,012.0

980.5

.288

.254

290.6

42.7247.9143.6104.3

124.582.542.1

45.4

28.516.955.625.230.4

22.31,027.3

990.4

.283

.250

293.3

43.4249.9142.8107.0

124.4

81.742.7

46.328.817.5

56.825.031.8

22.3

1,038.8

999.6.282.250

Table 8.Relation of Gross National Product, Net National Product,National Income, and Personal Income (1.9)

Table 9.Relation of Gross National Product, Net National Productand National Income in Constant Dollars (1.10)

Gross national productLess: Capital consumption al-

lowances with capital con-sumption adjustment

Equals: Net national product. .Less: Indirect business tax

and nontax liabilityBusiness transfer pay-

mentsStatistical discrepancy _ .

Plus: Subsidies less currentsurplus of governmententerprises

Equals: National income

Less: Corporate profits withinventory valuationand capital consump-tion adjustments

Net interest...Contributions for social

insuranceWage accruals less dis-

bursementsPlus: Government transfer

payments to persons. _Personal interest incomeDividends _Business transfer pay-

ments

Equals: Personal income

1974 1975

1974

IV

1975

I II III IV

1976

I*


Billions of dollars

1,406.9

134.0

1,272.9

127.3

5.8-.6

.7

1,141.1

91.3

70.7

102.9

-.5

134.5106.531.1

5.81,154.7

1,498.9

152.01,346.9

137.3

6.3-2.6

1.91,207.8

100.3

81.6108.3

.0

168.7120.532.8

6.31,245.9

1,441.3

142.1

1,299.3

129.5

6.02.9

.4

1,161.3

82.0

76.7105.0

.0

145.5114.031.7

6.0

1,194.8

1,433.6

145.4

1.288.2

131.6

6.2-3.2

1.61,155.2

78.978.7

106.0.0

157.7116.032.16.2

1,203.6

1,460.6

149.5

1,311.1

135.2

6.3-8.9

2.2

1,180.8

96.6

79.7106.6

.0

169.4117.632.6

6.3

1,223.8

1,528.5

154.7

1,373.8

140.0

6.4-3.2

1.91,232.5

113.182.2

108.9.0

172.4121.233.5

6.4

1,261.7

1,572.9

158.51,414.4

142.2

6.55.0

1.91, 262. 6

112.7

85.7111.8

.0

175.2127.433.1

6.5

1,294.5

1, 619. 2

163.11, 456. 1

142.8

6.65.3

-.1

1,301.3

121.8

89.2

118.4

.0

181.5131.933.3

6.61,325.2

Gross national productLess: Capital consumption al-

lowances with capitalconsumption adjust-ment

Equals: Net national product. . _

Less: Indirect business taxesplus transfer paymentsless subsidies plus cur-rent surplus of govern-ment enterprises

Residual *> 3


1974 1975

1974

IV

1975

I II III IV

1976

I*



1,210.7

116.71094. 0

117.2

-.5977.4

1, 186. 1

122.2

1063. 8

118.12. 1

947.8

1, 186. 8

119.21067. 6

116.82.4

948.5

1, 158. 6

120.01038. 5

116. 4-2.6924.7

1, 168. 1

121.2

1046. 8

118.1-7.1

935.9

1,201.5

123.0

1078. 6

118.4-2.5962.7

1, 216. 2

124.81091. 4

119.53.9

968.1

1, 241. 2

125.71,115.4

120.54.1

990.8

* See footnote on page 3.^ Preliminary.1. Stocks are as of the end of the quarter. The quarter-to-quarter change in inventories cal-

culated from the current-dollar stocks shown in this table is not the current-dollar change inbusiness inventories (CBI) component of GNP. The former is the difference between twoinventory stocks, each valued at end-of-quarter prices. The latter is the change in the physicalvolume of inventories valued at average prices of the quarter. In addition, changes calculatedfrom this table are at quarterly rates, whereas CBI is stated at annual rates.

2. Quarterly totals at annual rates.3. Equals GNP in constant dollars measured as the sum of final products less GNP in con-

stant dollars measured as the sum of gross product by industry.NOTE.Inventories are classified as durable or nondurable as follows: for manufacturing,

by the type of product produced by the establishment holding the inventory; for trade bythe type of product sold by the establishment holding the inventory; for construction, durable;and for other nonfarm industries, nondurable.


6 SURVEY OF CURRENT BUSINESS May 1976

1974 1975

1974

IV

1975

I II III IV

1976

I*


Billions of dollars

1974 1975

1974

IV

1975

I II III IV

1976

I*


Billions of dollars

Table 10.National Income by Type of Income (1.13) Table 12.Gross Domestic Product of Corporate Business (1.15)

National incomeCompensation of employees. . .

Wages and salariesPrivateMilitaryGovernment civilian

Supplements to wages andsalaries

Employer contributionsfor social insurance

Other labor incomeProprietors' income with in-

ventory valuation and capi-tal consumption adjust-ments. . _ _

FarmProprietors' income with

inventory valuation ad-justment and withoutcapital consumption ad-justment -.

Capital consumption ad-justmentNonfarm

Proprietors' income with-out inventory valuationand capital consump-

Inventory valuation ad-justmentCapital consumption ad-justment

Rental income of persons withcapital consumption ad-justment

Rental income of personsCapital consumption ad-justment

Corporate profits with inven-tory valuation and capitalconsumption adjustments..

Corporate profits with in-ventory valuation ad-justment and withoutcapital consumption ad-justment

Profits before tax. ._.Profits tax liabilityProfits after tax

Dividends _.Undistributed profits.

Inventory valuation ad-justmentCapital consumption ad-justment

Net interest

1,141.1873.0763.1603.022.3

137.7

110.0

55.554.5

85.125.6

29.3

-3.759.5

62.0

-4.1

1.6

21.032.9

-11.9

91.3

93.6132.152.679.531.148.4

-38.5-2.370.7

1,207.8921.4801.6627.323.0

151.3

119.858.561.3

83.324.6

28.9

-4.358.7

60.0

-1.3

.0

21.135.0

-13.9

100.3

106.0116.845.671.232.838.4

-10.8-5.781.6

1,161.3898.1783.6617.723.0

142.9

114.4

56.957.6

83.624.6

28.6

-4.059.0

62.5-4.6

1.1

20.933.2

-12.3

82.0

86.1123.949.274.731.743.0

-37.7-4.276.7

1,155.2897.1781.0611.722.9

146.4116.1

57.159.0

79.621.0

25.1-4.158.6

59.1-1.3

.8

20.833.9

-13.1

78.9

83.497.137.559.632.127.5

-13.7-4.578.7

1,180.8905.4787.6615.022.8

149.7

117.857.560.3

78.620.1

24.3-4.258.5

59.1-.9

.3

20.534.6

-14.1

96.6

101.6108.241.666.632.634.0

-6.6-5.079.7

1,232.5928.2807.3631.922.8

152.6

120.9

58.962.0

88.029.3

33.6

-4.358.7

60.4

-1.5

-.3

20.935.1

-14.2

113.1

119.6129.550.778.833.545.3

-9.9-6.582.2

1,262.6955.1830.7650.523.6

156.5124.4

60.663.8

87.128.2

32.6-4.458.9

61.2

-1.5-.8

22.036.3

-14.3

112.7

119.3132.452.579.933.146.8

-13.1-6.685.7

1, 301. 3 Gross domestic product of cor-9826 porate business851.5668. 8 Capital consumption allowances with23. 6 capital consumption adjustment

159.0Net domestic product

131.1Indirect business taxes plus transfer

65 o payments less subsidies66.1

D omestic income

Compensation of employees85.025 3 Wages and salaries

Supplements to wages and sal-aries

Corporate profits with inventory29. 9 valuation and capital consump-

tion adjustments..-4.659 7 Profits before tax..

Profits tax liabilityProfits after tax

61 7 DividendsUndistributed profits

-.9Inventory valuation adjustment.

1. i Capital consumption adjust-ment

22 7 Net interest37.4

Gross domestic product of finan-14 7 cial corporate business l

Gross domestic product of non-121. 8 financial corporate business. . .

Capital consumption allowances withcapital consumption adjustment

129 4 Net domestic product140.856. 5 Indirect business taxes plus transfer84 3 payments less subsidies .33.351 0 Domestic income

11.4 Compensation of employees

7. 6 Wages and salaries89.2 Supplements to wages and sal-

aries

Table 11. Gross Saving and Investment (5.1) ^valuttiSn^

Gross savingGross private saving

Personal saving Undistributed corporate

profits with inventoryvaluation and capitalconsumption adjust-ments. _

Undistributed profitsInventory valuation ad-

Capital consumption ad-Corporate capital consump-

tion allowances with capi-tal consumption adjust-ment.. .

Noncorporate capital con-sumption allowances withcapital consumption ad-justment _

Wage accruals less disburse-ments

Government surplus or deficit( ), national income andproduct accounts _

Federal..State and local _

Capital grants received by theUnited States (net) 2

Gross investmentGross private domestic invest-

ment. . .Net foreign investment ..

Statistical discrepancy

210.1215.774.0

7.648.4

-38.5-2.3

82.1

52.0.0

-3.6-11.7

8.1

-2.0209.5212.2-2.8-.6

198.0262.888.9

21.938.4

-10.8

-5.7

93.5

58.5.0

-64.8-74.6

9.8

.0195.4

182.612.8

-2.6

207.1226.783.6

1.143.0

-37.7-4.2

87.2

54.9.0

-19.6-25.5

5.9

.0210.0210.3-.22.9

180.3228.373.6

9.327.5

-13.7

-4.5

89.1

56.3

.0

-48.0-53.7

5.7.0

177.1

168.78.4

-3.2

185.9279.3107.5

22.434.0

-6.6-5.0

91.6

57.9.0

-93.4-102. 2

8.8

.0177.0161.415.6

-8.9

211.9269.585.9

28.945.3

-9.9-6.5

95.5

59.2.0

-57.6-70.5

12.9

.0208.7

194.913.7

-3.2

213.8274.288.6

27.146.8

-13.1

-6.6

97.7

60.8.0

-60.4-72.1

11.7

.0218.8

205.413.45.0

oo?' \ Profits before taxRfi 9OO. & "Prri-fife fav liaVillittr

Profits after taxDividendsUndistributed profits

oo f)gV Q Inventory valuation adjustment .

Capital consumption adjust-n A ment

7 R Netinterest

Gross domestic product of non-financial corporate business. ..

OQ i Capital consumption allowances withcapital consumption adjustment

54 7 Indirect business taxes plus transferq* i payments less subsidies14 5 Domestic income .

854.6

82.1

772.6

92.8

679.8582.4502.180.4

80.2

121.1

52.668.530.937.5

-38.5-2.3

17.1

46.0

808.7

78.3730.4

86.0

644.4

549.5474.375.2

63.2103.842.761.130.530.6

-38.5-2.1

31.7

912.1

93.5

818.6

100.4

718.2

604.5518.685.9

94.4

110.945.665.330.934.4

-10.8

-5.719.3

48.0

864.1

89.0775.0

93.2

681.8568.7

488.580.3

78.894.735.958.830.828.0

-10.8

-5.134.3

869.2

87.2

782.1

94.5687.6

596.8513.383.5

71.0

112.949.263.730.633.0

-37.7-4.2

19.8

47.4

821.8

83.1738.7

87.5651.2

562.3484.378.0

54.896.339.456.930.426.5

-37.7

-3.834.0

865.9

89.1

776.8

95.5

681.3589.5506.083.4

73.1

91.337.553.830.123.7

-13.7

-4.518.7

49.5

816.4

85.0731.4

88.5642.9554.4476.578.0

55.373.127.146.030.115.9

-13.7-4.1

33.2

892.4

91.6

800.8

98.8702.1

592.5508.184.3

90.7102.341.660.830.630.1

-6.6-5.018.9

47.3

845.1

87.3

757.8

91.6666.2

556.9478.1

78.8

75.786.832.054.830.724.0

-6.6-4.533.6

933.0

95.5837.5

102.8

734.7

608.6522.086.6

106.9123.350.772.631.541.1

-9.9-6.519.2

46.7

886.2

91.0

795.3

95.5

699.8572.7491.880.9

92.7108.541.666.831.335.5

-9.9

-5.934.4

956.9

97.7

859.2

104.7

754.6627.4538.289.2

107.0126.652.574.131.442.7

-13.1-6.620.2

48.4

908.5

92.9

815.6

97.2

718.4590.9507.583.4

91.7110.542.867.731.236.5

-13.1-5.835.8

987.5

100.1887.4

103.5783.9647.5553.194.4

115.5134.4

56.678.030.147.9

-11.4

-7.621.0

50.3

937.2

95.1842.1

95.9746.2

610.0521.7

88.3

98.9117.046.170.830.040.9

-11.4

-6.7

37.3


697.6

69.3628.2

77.4550.8

680.4

72.8

607.6

77.8529.7

676.5

70.9

605.7

77.0528.7

654.0

71.4

582.5

76.8505.7

671.8

72.2

599.6

77.9521.8

695.0

73.2

621.7

78.1543.7

700.8

74.4

626.4

78.7547.7

715.0

75.0640.0

79.0561.0

. ? * See footnote on page 3. . , .232.0 !. Consists of corporations in the following industries: banking; credit agencies other than

banks; security and commodity brokers, dealers, and services; insurance carriers; regulated232. 2 investment companies; small business investment companies; and real estate investment-

2 trusts. These industries together with insurance agents, real estate, and other holding and5

-

3 investment companies comprise the finance, insurance, and real estate industry.

2. See footnote 1 table 16.


May 1976 SUEVEY 'OF CUEEENT BUSINESS

1974 1975

1974

IV

1975

I II III IV

1976

I


Billions of dollars

Table 13.Personal Income and Its Disposition (2.1)

Personal income _Wage and salary disburse-

ments

Commodity-producing in-dustries 1

ManufacturingDistributive industries 2. _Service industries 3Government and govern-

ment enterprisesOther labor incomeProprietors* income with in-

ventory valuation andcapital consumption ad-justments

FarmNonfarm

Rental income of personswith capital consumptionad j u stm ent

DividendsPersonal interest incomeTransfer payments

Old-age, survivors, dis-ability, and health in-surance benefits

Government unemploy-ment insurance benefits-

Veterans benefitsGovernment employee re-

tirement benefitsAid to families with de-

pendent childrenOther .. .

Less: Personal contribu-tions for social insurance. .

Less: Personal tax and non-tax payments

Equals: Disposable personalincome . ._

Less: Personal outlaysPersonal consumption ex-

pendituresInterest paid by consumers

to businessPersonal transfer payments

to foreigners (net)Equals: Personal saving

Addenda:Disposable personal income:

Total, billions of 1972dollars

Per capita:Current dollars1972 dollars ..

Population (mid-period,millions) . ..

Personal saving as percent ofdisposable personal income _.

1,154.7

763.6

273.7211.2184.3145.0160.654.5

85.125.659.5

21.031.1

106.5140.4

70.16.6

11.7

18.57.9

25.5

47.4

171.2

983.6909.5

885.922.61.0

74.0

843.5

4,6423,981

211.9

7.5

1, 245. 9

801.6

273.6211.2195.1158.6174.361.3

83.324.658.7

21.132.8

120.5175.0

81.417.614.3

21.89.1

30.9

49.8

169.2

1,076.7987.8

963.823.11.0

88.9

856.7

5,0404,010

213.6

8.3

1,194.8

783.6

277.7214.9189.9150.1165.957.6

83.624.659.0

20.931.7

114.0151.6

75.08.2

13.4

19.68.4

27.0

48.2

178.9

1,015.9932.4

908.423.01.0

83.6

837.6

4,7793,940

212.6

8.2

1,203.6

781.0

267.9205.5190.3153.5169.359.0

79.621.058.6

20.832.1

116.0163.9

76.615.114.6

20.78.7

28.1

48.8

179.6

1,024.0950.4

926.423.01.0

73.6

831.6

4,8083,905

213.0

7.2

1,223.8

787.6

267.2205.9191.8156.0172.660.3

78.620.158.5

20.532.6

117.6175.7

77.718.613.8

21.28.9

35.4

49.1

142.1

1,081.7974.2

950.322.81.1

107.5

869.8

5,0704,077

213.4

9.9

1,261.7

807.3

275.3212.9196.6160.0175.462.0

88.029.358.7

20.933.5

121.2178.8

85.018.713.9

22.19.2

29.8

50.0

174.6

1,087.11,001.3

977.423.0

.985.9

858.2

5,0834,012

213.9

7.9

1,294.5

830.7

284.0220. 6201.8164.7180.263.8

87.128.258.9

22.033.1

127.4181.7

86.217.814.9

23.29.5

30.1

51.2

180.5

1,114.01,025.4

1,001.023.41.0

88.6

867.3

5,1974,047

214.3

7.9

1,325.2

851.5

293.2228.5207.0168.6182.666.1

85.025.359.7

22.733.3

131.9

188.1

87.917.616.3

24.09.6

32.8

53.4

184.4

1, 140. 71,054.5

1,029.623.81.0

86.2

880.3

5,3134,100

214.7

7.6

1974 1975

1974

IV

1975

I II III IV

1976

I*


Billions of dollars

Table 14.Corporate Profits by Industry (6.18)

Corporate profits with inventoryvaluation and capital consump-tion adjustments

Domestic industriesFinancial .Nonfinancial--

Rest of the world .Corporate profits with inventory

valuation adjustment andwithout capital consumptionadjustment... -..

Domestic industries _Financial

Federal Reserve banksOther ..

Nonfinancial - - . _ . - ... -M anuf actur in g

Nondurable goodsFood and kindred productsChemicals and allied products.Petroleum and coal products _ . _Other . . .

Durable goods ._ ... .Primary metal industriesFabricated metal productsMachinery, except electrical...Electrical equipment and sup-

pliesMotor vehicles and equipment-Other

Wholesale and retail trade. _.Transportation, communication,

and electric, gas, and sanitaryservices

OtherRest of the world .

Corporate profits before deduc-tion of capital consumption al-lowances, with inventory valu-ation adjustment ... -

Domestic industries . . .Financial

Federal Reserve banksOther . .

Nonfinancial-- _Manufacturing

Nondurable goodsFood and kindred productsChemicals and allied products .Petroleum and coal products ..Other - .

Durable goodsPrimary metal industriesFabricated metal productsMachinery, except electrical. _.Electrical equipment and sup-

plies ._Motor vehicles and equip-

mentOther. . .

Wholesale and retail trade... .Transportation, communication,

and electric, gas, and sanitaryservices

Other .. ..Rest of the world

91.380.217.163.211.0

93.682.517.35.7

11.565.337.425.63.35.38.98.2

11.83.5.9

1.8.9

1.03.7

13.4

7.07.5

11.0

173.3162.320.85.7

15.0141.569.741.65.68.9

14.212.928.15.92.25.03.53.58.0

21.2

29.421.211.0

100,394.415.678.85.9

106.0100.116.25.7

10.583.945.227.46.66.36.38.3

17.82.12.74.82.02.04.3

21.9

8.87.95.9

193.8187.920.05.7

14.3167.980.144.89.0

10.212.213.335.44.64.08.34.94.79.0

30.6

34.023.15.9

82.071.016.254.811.0

86.175.116.56.0

10.558.631.922.61.74.87.78.59.24.31.31.1.3.6

1.611.9

6.78.1

11.0

169.1158.120.26.0

14.1138. 065.239.74.18.6

13.613.425.56.72.64.32.92.96.1

20.0

30.522.311.0

78.973.117.855.35.8

83.477.618.35.7

12.559.330.021.15.94.45.25.68.93.91.53.41.2

-2.21.0

16.3

5.17.95.8

168.0162.222.05.8

16.2140.363.838.18.38.2

11.110.525.76.42.96.73.9.2

5.624.6

29.422.55.8

96.690.715.075.75.8

101.695.715.55.79.9

80.243.527.57.15.97.07.5

16.01.72.74.72.21.13.6

21.0

7.97.85.8

188.2182.319.35.7

13.6163.077.944.59.49.8

12.812.533.34.24.18.25.03.78.2

29.5

32.822.85.8

113.1106.914.292.76.2

119.6113.414.95.49.4

98.654.630.16.97.56.09.8

24.51.43.45.82.54.96.5

25.1

11.37.66.2

208.6202.418.75.5

13.3183.789.947.69.3

11.411.915.042.33.94.89.35.47.7

11.333.9

36.823.16.2

112.7107.015.391.75.8

119.3113.616.15.8

10.397.452.830.96.47.46.8

10.221.91.23.05.32.24.26.0

25.4

11.08.25.8

210.4204.720.15.8

14.2184.688.948.88.9

11.512.915.440.13.84.49.05.17.0

10.934.4

37.324.15.8

121.8115.516.698.96.3

129.4123.117.56.0

11.5105.6

6.3

221.9215.521.56.0

15.5194.0

"~6.y*See footnote on page 3.NOTE.The industry classification is on a company basis.

1. Consists of agriculture, forestry, and fisheries; mining; contract construction; and man-ufacturing.

2. Consists of transportation; communication; electric, gas, and sanitary services; and trade.3. Consists of finance, insurance, and real estate; services; and rest of the world.


8 SURVEY OF CURRENT BUSINESS May 1976

1974 1975

1974

IV

1975

I II III IV

1976

I*


Billions of dollars

1974 1975

1974

IV

1975

I II III VI

1976

I *


Billions of dollars

Table 15.Federal Government Receipts and Expenditures (3.2)

ReceiptsPersonal tax and nontax receiptsCorporate profits tax accruals _ .Indirect business tax and nontax

accrualsContributions for social insurance

Expenditures . _ _ . .Purchases of goods and services

National defenseCompensation of employeesOther

NondefenseCompensation of employeesOther

Transfer paymentsTo persons.To foreigners *

Grants-in-aid to State and localgovernments

Net interest paidInterest paid

To persons and businessTo foreigners

Less: Interest paid to government..Subsidies less current surplus of

government enterprisesSubsidiesLess: Current surplus of gov-

ernment enterprisesLess: Wage accruals less disburse-

ments

Surplus or deficit ( ), nationalincome and product accounts

288.4131.445.9

21.7

89.4300.1

111.7

77.4

37.539.934.317.217.1

117.7

114.53.2

43.921.0

24.1

19.84.3

3.0

5.23.4

-1.8

-11.7

282.3125.639.0

24.2

93.5356.9123.2

84.039 644.4

39.219.220.0

149 2

146.13 0

54.3

23 4

27.1

22 64.53.7

6 8

4.5

-2.3

o

-74.6

293.1137.4

42.9

21.7

91.1318.6118.2

80.538.941.637.7

18.119.6

127.8

124.83.0

45.422.0

25.020.54.5

2.9

5.13.

-1.3

0

-25.5

283.6137.632. 1

22.3

91.7337.4119.4

81.4

39.042.4

38.0

18.719.3

139.2136.2

3.0

50.122 4

25.520.64.93.2

6.34.6

-1.6

0

-53.7

250.199.335.5

23.591.9

352.3119.282.1

39.143.0

37.118.918.1

150.5147.3

3.2

52.822 6

26.121.64.4

3.5

7.1

4.4

-2.8

o

-102.2

293.3130.543 4

25 593.9

363.8124 2

84 939.345.639.319 320.0

152 5149.5

3 0

56 823 4

27.3

22 84.53.9

6 94.4

-2.5

o

-70.5

302.1

135.245.0

25 496.4

374.2129 9

87 4

40 946.542 520 122.4

154 5151.5

3 0

57 425 329.525 24.34.2

7 0

4.8

2. J

o

-72.1

312.2

137.8

48 6

23 0

102.8381.3

131 1

87 0

41 245.844 1

20 423 6

160 2157.2

3 0

58 726 1

30 8

26 54 3

4.6

5 14 9

-.2

Q

-69.1

Table 16.Foreign Transactions in the National Income andProduct Accounts (4.1)

Receipts from foreignersExports of goods and servicesCapital grants received by the United

States (net) *Payments to foreigners.

Imports of goods and servicesTransfer payments (net)

From persons (net)From government (net)

Interest paid by government to for-eigners _ _ .

Net foreign investment

142.2

144.2

2 0

142.2

136.54.2

1.03.2

4.3

-2.8

147.8

147.8

o

147.8

126.5

4.0

1.03.0

4.5

12.8

153.6153.6

0

153.6145.3

4 0

1.03.0

4.5-.2

148.2148.2

o

148.2

130.9

4 0

1 03.0

4.9

8.4

140.7140.7

o

140.7116.4

4 2

1.13.2

4.4

15.6

148 5148.5

o

148.5126.4

3 9

.93.0

4.513.7

153 8153.8

o

153.8132.1

4.0

1.03.0

4.313.4

153 1153.1

o

153.1145.0

4.1

1.03.0

4.3-.2

* See footnote on page 3.1. On February 18, 1974, the U.S. Government granted to India $2,010 million (quarterly

rate) in rupees under provisions of the Agricultural Trade Development and AdjustmentAct. This transaction is being treated as capital grants paid to foreigners in the national incomeand product accounts but as current unilateral transfers in the balance of payments accounts.Accordingly, this transaction is excluded from Federal Government transfers to foreignersand related totals shown in tables 11, 15, and 16, and is included in the first quarter of 1974as $8.0 billion (annual rate) in capital grants received by the U.S. shown in tables 11 and 16.

Table 17.State and Local Government Receipts and Expendi-tures (3.4)

ReceiptsPersonal tax and nontax

receiptsCorporate profits tax accruals. .Indirect business tax and non-

tax accruals .Contributions for social in-

surance

Federal grants-in-aid_Expen d itures

Purchases of goods and serv-ices

Compensation of employees-Other

Transfer payments to persons. .Net interest paid

PaidLess: Received

Subsidies less current surplusof government enterprises.

SubsidiesLess: Current surplus of

government enterprisesLess: Wage accruals less dis-

bursementsSurplus or deficit ( ), na-

tional income and productaccounts

Social insurance fundsOther funds -

209.4

39.86.7

105.6

13 543.9

201 3

189.4106.483.0

20.0 3. 6

9.413.0

-4.5.1

4.7

.0

8.19.8

-1.7

232.4

43.66.6

113.1

14 8

54.3222.6

208.0117.490.622.5

-3.010.813.9

-4.9.2

5.1

.0

9.8

11.1-1.3

214 9

41 5

6.3

107.8

14 045.4

209 0

196.3110.086.320.7

-3.39.9

13.2

-4.7.1

4.8

.0

5.910.2

-4.3

221 2

42.05.5

109.3

14.3

50.1215.5

201.9113.388.6

21.5-3.210.413.7

-4.7.1

4.9

.0

5.710.8

-5.0

228 2

42.9

6.1

111.8

14 7

52.8219 4

205.5116.489.022.1

-3.210.713.9

-4.9.2

5.1

.0

8.811.1

-2.2

237 7

44.1

7.3

114.5

15 056.8

224.8

209.9118.891.122.9

-2.911.013.9

-5.02

5.2

.0

12.9

11.21.7

242.3

45.37.5

116.7

15.357.4

230.6

214.8121.293.623. 6

-2.811.314.1

-5.1.2

5.3

.0

11.7

11.2.5

248.7

46.67.9

119.9

15.658.7

234.3

218.1

123.794.5

24.3-3.011.514.5

-5.2.2

5.4

.0

14.511.33.2

Table 18.National Income Without Capital Consumption Ad-justment by Industry (6.4)

National income withoutcapital consumptionadjustment

Domestic incomeAgriculture, forestry, and

fisheries

Mining and contract con-struction

Manufacturing _Nondurable goodsDurable goods

TransportationCommunicationElectric, gas, and sanitary

servicesWholesale and retail trade. _.

^^holesale tradeRetail trade

Finance, insurance, and realestate

ServicesGovernment and govern-

ment enterprises

Rest of the world . . -

1,157.51,143.1

43.8

74 6294.2119.0175.345.123.8

20.0178.5

74.8103.7

130.3152.7

180.0

14.4

1,231.61, 221. 1

44.7

74 3303.1124.9178.144.425.6

24.6201.1

80.4120.6

139.0167.3

197.110.5

1,180.71,165.9

43.6

75.6293.7117.2176.444.925.0

21.4182.9

79.3103.5

133.7158.5

186.7

14.8

1,176.11,166.4

40.6

74.5280.7114.2166.541.724.3

23.0190.9

75.7115.2

137.7161.9

191.2

9.6

1,203.81,193.7

39.8

73.1295.0122.3172.7

42.525.3

24.2197.6

77.9119.7

136.7164.7

195.0

10.0

1,257.81,246.1

49.4

74.0314.4129.2185.245.826.3

25.4205.583.1

122.4

137.9169.0

198.4

11.6

1,288.71,278.0

48.8

75.6322.2134.0188.147.726.5

25.8210.4

85.0125.4

143.7173.7

203.710.7

1,329.21,317.7

11.5

NOTE The industry classification of the compensation of employees, proprietors' income,and rental income of persons is on an establishment basis; the industry classification of cor-porate profits and net interest is on a company basis.


May 1976 SURVEY OF CUEEENT BUSINESS 9

1974 1975

1974

IV

1975

I II III IV

1976

I*

Seasonally adjusted

Index numbers, 1972=100

Table 19.Implicit Price Deflators for Gross National Product (7.1)


Personal consumption expenditures. ..Durable goodsNondurable goods _ . ..Services


NonresidentialStructuresProducers' durable equipment __

Residential-Nonfarm structuresFarm structures ._Producers' durable equipment..

Change in business inventoriesNonfarmFarm

Net exports of goods and servicesExportsImports .

Government purchases of goods andservices . . _

FederalNational defenseNondefense. . . . _ . _ _

State and local

116.20

116.6108.4124.0112.7

117.6116.0127.5110.2122.1122.6122.9105.4

147.8168.6

118.4117.6

118.9

126. 37

125.7116.9133.6121.5

132.6132.3141.7127.7133.3133.8133.7115.9

163.2188.3

128.6130.6

127.4

121. 45

121.3114.0129.5116.4

125.4125.0138.3118.3126.7127.2127.1110.8

160.4185.6

124.0124.8

123.6

123.74

123.1114.3131.0119.0

130. 1129.6141.0123.8131.6132.2131.4113.8

163.5189.1

125.9127.3

125.1

125. 04124.4116.3131.9120.2

131.9131.8141.2127.3132.3132.9132.2115.5

162.0187.8

127.3128.9

126.4

127. 21

126.7117.4135.2122.2

132.6132.6141.4128.4132.5133.0133.0116.8

163.6187.8

129.2130.9

128.2

129. 33

128.4119.4136.4124.4

135.5135.3143.4131.3136.1136.7136.1118.8

163.5188.2

131. 8135.3

129.8

130. 46

129.6120.8136.5126.5

137.7136.9144.2133.3139.7140.3140.2120.8

164.3189.8

133.5136.9

131.5

Table 20.Implicit Price Deflators for Gross National Product byMajor Type of Product (7.3)


Final salesGoods

DurableNondurable

ServicesStructures

116.20

116.1115.5109.6119.6114.6126.2

126. 37

126.5127.8123.8130.3122.9139.2

121. 45

121.3121.5116.6124.7118.5134.8

123. 74

123.8124.8119.9127.8120.3128.4

125. 04

125.4126.7123.4129.0121.6138.6

127.21

127.3129.0124.8131.7123.6138.4

129. 33

129.3130.4126.9132.8126.0141.2

130.46

130.3130.2127.4132.0128.1143.1

Table 21.Implicit Price Deflators for Gross National Product bySector (7.5)

Gross national product _ _

Gross domestic product

BusinessNonfarm pFarm.Residual?1 .

Households and institutions .

Government ... ..FederalState and local _ -

Rest of the world

116 20115 7

115 8114.6154 0

116.4

114 4114.1114 6

126. 37

126 0126 6126. 1142 4

126.4

121 5123.1120 7

121 45120 9121 3120 3152 5

120.9

117 7119.0117 1

123 74

123 4

124 0123 8130 8

122 5

119 1120.5118 4

125 04124 7

125 3124 8139 5

124 0

120 5121.4120 0

127 21

126 8

127 5126 6150 7

127 6J91 g122.5121 4

129 33

129 0129 5128 8147 8

131 5124 5128.0122 8

130 46

130 1130 5130 3137 1

133 1

126 2129.4124 6

Table 22.Implicit Price Deflators for the Relation of GrossNational Product, Net National Product, and National Income(7.6)

Gross national product . .

Less: Capital consumption allowanceswith capital consumption ad-justment

Equals : Net national product .

Less: Indirect business taxes plustransfer payments less subsidiesplus current surplus of gov-ernment enterprises .

Residual? l


116.20

114.8

116.3

113.0

116.8

126. 37

124.4

126.6

120.0

127.4

121. 45

119.2

121.7

115.7

122.4

123. 74

121.1

124.0

117.0

124.9

125. 04

123.3

125.2

118.0

126.2

127. 21

125.8127.4

122.0

128.0

129. 33

127.1

129.6

122.8

130.4

130. 46

129.7130.5

124.1

131.3

1974 1975

1974

IV

1975

I II III IV

1976

I*

Seasonally adjusted


Table 23.Implicit Price Deflators for Net National Product andNational Income by Sector (7.7)

Net national product

Net domestic product

Business .

NonfarnipFarmResidual? l

Households and institutions. _Government.. . ... .

Rest of the world

National income

Domestic income

Business

NonfarmFarm . .


Rest of the world

116.3

115.8116.0114.7164.1

116.4114.4

116 8

116.1116.4

115.4147.1

116.4114.4

126.6

126.2

127.0126.4145.5

126.4121.5

127.4

127.0

128.0

128.0128.6126.4121.5

121.7

121.0

121.6120.5160.9

120.9117.7

122.4

121.7

122. 5

121.8143.7

120.9117.7

124.0

123.6124.4

124.2131.1

122.5119.1

124.9

124.5125.6126.0114.6

122.5119.1

125.2124.8

125.6125.1142.4

124.0120.5

126.2

125.7

126.8126.9124.3124.0120.5

127.4

126.9127.7

126.8155.8

127.6121.8

128.0

127.5128.6128.2138.5127.6121.8

129.6

129.2

129.8129.1151.4

131.5124.5

130.4

130.0

130.9

130.7135. 9131.5124.5

130.5130.1

130.6130.4137.4

133.1126.2

131.3

130.8

131.6

132.0122.4

133.1126.2

Table 24.Implicit Price Deflators for Auto Output (7.9)

Auto output

Final salesPersonal consumption expenditures _

New autos ..Net purchases of used autos

Producers' durable equipmentNew autos ... . . . .Net purchases of used autos

Net exportsExports ...Imports . .

Government purchases of goods andservices _ . . .

Change in inventories of new and usedautos

Addenda:Domestic output of new autos 2Sales of imported new autos 3

106.8

106.3109.1105.6103.7105.8

107.2118.8

111.8

105.0105.8

112.9

113.1117.7115.1107.7115.1

Il6.6134.9120.6

115.0115.0

112.5113.9117.7111.4

105.3111.4

113.3122.4

116.6

111.3111.4

107.9109.2112.8112.2

105.9112.1

Il3.3131.1

118.1

111.5112.2

111.8

112.8116.8114.5108.6114.5

113.8132.4

120.3

114.3114.5

113.9

113.3118.5115.2106.8115.3

116.5134.6120.8

115.2115. 3

116.9

116.5121.8118.1

109.6118.0

119.5140.3

122.9

118.1118.1

118.6

117.5122.5120.4112.2120.4

119.2143.1

124.7

120.3120.4

Table 25.Implicit Price Deflators for Personal ConsumptionExpenditures by Major Type of Product (7.11)

Personal consumption expendi-tures

Durable goods

Motor vehicles and parts ..Furniture and household equipment-Other

Nondurable goods _ _

Food -Clothing and shoesGasoline and oil . _ _ _Fuel oil and coalOther ._

Services .

HousingHousehold operation

Electricity and gasOther .

TransportationOther

116.6108.4108.0108.3110.0124.0

128.7110.5147.9182.4112.3112.7

110.8116.4122.1112.4108.3114.1

125.7116.9116.8116.5118.3133.6139.2114.2155.4197.6125.2121.5116.8128.1140.6119.3119.9123.6

121.3114.0115.7112.8113.9129.5134.8113.6146.5193.7119.3116.4

113.3121.4129.6115.5113.1118.0

123.1

114.3112.7114.9116.5131.0136.9113.5146.1187.9122.8119.0

114.7124.3134.6116.9116.4121.4

124.4

116.3116.0116.0117.9131.9137.2113.3150.5190.4124.8120.2

115.9126.6138.0118.3118.6122.0

126.7

117.4117.4116.8119.2135.2140.7114.8161.9202.1125.7122.2

117.3129.6143.2119.9121.1124.1

128.4

119.4120.4118.3119.7136.4

142.0115.3163.4210.0127.4

124.4

119.2132.0146.7122.1123.4126.8

129.6120.8121.3120.0121.5136.5141.4116.2157.6205.3129.9126.5

120.8134.3147.3125.0125.9129.0

* See Footnote on page 3.1. Equals GNP in constant dollars measured as the sum of final products less GNP in

constant dollars measured as the sum of gross product by industry.2. Final sales and change in inventories of new autos produced in the United States.3. Consists of personal consumption expenditures, producers' durable equipment, and

government purchases.

207-050 O - 76 - 2


10 SUKVEY OF CURRENT BUSINESS May 1976Table 26.Percent Change From Preceding Period in Gross Na- Table 26.Percent Change From Preceding Period in Gross Na-

tional Product in Current and Constant Dollars, Implicit Price tional Product in Current and Constant Dollars, Implicit PriceDeflator, and Price Indexes (8.9) Deflator, and Price IndexesContinued

Gross national product:Current dollars _ -1972 dollars -Implicit price deflatorChain price indexFixed-weighted price index

Personal consumption expenditures:Current dollars1972 dollars -Implicit price deflator.Chain price indexFixed-weighted price index

Durable goods:Current dollars -1972 dollarsImplicit price deflatorChain price indexFixed-weighted price index

Nondurable goods:Current dollars -. -1972 dollarsImplicit price deflatorChain price indexFixed-weighted price index _

Services:Current dollars1972 dollars - . . - -Implicit price deflatorChain price indexFixed-weighted price index

Gross private domestic investment:Current dollars1972 dollars -Implicit price deflatorChain price index...Fixed-weighted price index

Fixed investment:Current dollars . .1972 dollarsImplicit price deflatorChain price indexFixed-weighted price index . .

Nonresidential :Current dollars1972 dollarsImplicit price deflator .Chain price indexFixed-weighted price index-

Structures:Current dollars1972 dollarsImplicit price deflatorChain price indexFixed-weighted price index. .

Producers' durableequipment:

Current dollars .1972 dollarsImplicit price deflatorChain price index.Fixed-weighted price index..

Residential:Current dollars.1972 dollarsImplicit price deflatorChain price indexFixed-weighted price index..

Exports:Current dollars1972 dollarsImplicit price deflatorChain price indexFixed-weighted price index

Imports:Current dollars1972 dollarsImplicit price deflatorChain price indexFixed-weighte d price index

Government purchases of goods andservices:

Current dollars1972 dollarsImplicit price deflator .Chain price indexFixed-weighted price index

Current dollars .1972 dollarsImplicit price deflator-Chain price index..Fixed-weighted price index

State and local:Current dollars.. .1972 dollarsImplicit price deflatorChain price index. _ .Fixed-weighted price index

1974 1975

Percent

7.7-1.8

9.79.79.79.6-.810.510.710.9

-.8-7.0

6.66.56.5

12.4-2.214.815.415.510.52.67.87.87.8

-3.7-13.2

-.2-10.0

10.911.311.58.4

-2.911.611.712.0

11.1-5.918.018.018.1

6.9-1.3

8.28.28.3

-17.9-25.7

10.410.510.542.111.427.527.127.2

45.0.7

43.944.744.6

11.5.7

10.710.511.0

9.5-1.210.99.9

11.2

12.81.9

10.610.810.9

6.5-2.0

8.88.88.88.8.9

7.87.87.9

5.0-2.6

7.88.18.2

9.11.27.87.87.99.71.87.77.87.8

-13.9-23.2

-2.6-13.6

12.813.012.2

.4-12.0

14.114.514.0

-3.2-12,9

11.211.111.0

2.5-11.5

15.916.415.9

-10.7-18.1

9.19.19.12.5

-7.210.411.511.5

-7.3-17.0

11.711.211.2

10.01.38.68.79.0

10.3 . 711.110.811.2

9.82.57.27.57.5

1974

IV

1975

I 11 111 IV

1976

I*

Seasonally adjusted

Percent at annual rate

4.8-7.513.412.512.5

.3-9.210.410.210.4

-31.5-39.7

13.613.313.63.4

-7.411.611.612.09.51.67.77.87.8

5.3-13.9

-6.4-21.1

18.718.016.18.3

-12.623.922.822.1

16.2-.616.916.917.0

3.9-17.9

26.626.225.6

-38.5-42.0

5.95.85.8

13.9-4.819.721.421.5-.5

-16.218.816.616.0

11.6-1.813.713.514.0

17.2-4.122.320.821.1

8.4-.38.89.39.5

-2.1-9.2

7.88.27.88.21.86.26.36.1

5.74.51.21.51.1

7.52.64.84.94.99.6.4

9.29.29.2

-58.6-63.5

-12.1-24.0

15.716.415.3

-4.6-17.5

15.616.214.6

-8.4-15.1

8.08.28.0

-2.4-18.6

20.021.219.1

-32.4-42.0

16.616.716.5

-13.2-19.6

7.911.411.2

-34.2-39.0

7.97.37.0

8.92.46.36.16.24.0

-4.28.57.17.4

11.96.55.15.55.5

7.73.34.34.34.4

10.76.43.94.04.1

17.59.87.07.48.2

11.28.32.82.92.7

8.23.84.24.14.2

-16.1-16.1

-5.0-10.2

5.86.85.5

-8.3-14.3

6.98.17.3

-25.0-25.3

.4

.2

.0

2.6-8.211.712.912.37.14.92.12.32.2

-18.9-15.9-3.6-4.0-3.8

-37.4-35.7-2.7-2.2-2.0

4.4-.34.64.94.9-.6

-5.45.25.45.8

7.32.84. 24.64.2

19.912.07.17.37.3

11.94.07.78.18.2

28.523.83.83.84.0

11.91.5

10.210.810.97.4.5

6.86.96.9

112.7101.0

13.211.12.03.22.51.7-.72.44.13.6.8. 2.6.5.0

2.3-1.1

3.46.15.6

57.556.7

.5

.4

.4

24.219.54.03.83.5

39.039.1

.0-1.5-1.5

12.16.05.85.45.6

17.811.06.15.56.38.93.25.65.45.1

12.15.06.86.97.2

10.04.15.76.26.3

18.711.16.96.97.4

7.23.63.54.24.3

10.22.47.67.98.0

23.310.0

22.612.29.28.38.4

15.06.08.47.37.0

20.814.15.95.45.2

11.92.39.48.48.1

46.831.611.611.311.2

15.015.1-. 1

.4

.4

19.318.4

.7

.7

.8

13.54.68.58.58.6

19.95.0

14.214.113.6

9.84.35.25.25.2

12.38.53.53.93.9

11.98.03.63.33.0

26.520.64.94.84.8

6.96.5.3

-.6-1.0

12.55.46.86.66.7

63.352.1

19.312.26.46.77.1

17.312.04.75.25.1

14.412.02.11.71.8

18.912.06.27.17.2

25.112.710.911.111.0

-1.7-3.4

1.81.11.3

44.939.93.62.82.9

5.3.2

5.15.04.33.6

-1.34.94.12.96.31.05.25.55.3

Addenda:Gross domestic product:

Current dollars1972 dollarsImplicit price deflatorChain price indexFixed-weighted price index

Business:Current dollars1972 dollarsImplicit price deflator.Chain price indexFixed-weighted price index

1974 1975

Percent

7.3-1.8

9.39.39.47.1

-2.49.79.79.8

6.9-1.9

8.98.88.86.4

-2.79.39.19.1

1974

IV

1975

I II 111 IV

1976

I*

Seasonally adjusted

Percent at annual rate

4.6-7.813.512.5

3.4-9.314.012.812.7

-.7-8.5

8.58.3

-2.5-10.7

9.38.68.1

7.73.24.34.3

7.53.14.24.24.5

19.611.77.17.4

21.713.67.27.67.6

12.55.27.06.9

12.75.96.46.46.7

12.28.43.53.93.8

13.09.63.13.73.6

NOTE.The implicit price deflator for GNP is a weighted average of the detailed priceindexes used in the deflation of GNP. In each pariod, the weights are based on tha compositionof constant-dollar output. In other words, the price indax for each item is weighted by theratio of the quantity of the item valued in 1972 prices to the total output in 1972 prices. Changesin the implicit price deflator reflect both changes in prices and changes in the composition ofoutput. The chain price index uses as weights the composition of output in the prior period,and, therefore, reflects only the change in prices between the two periods. However, comp ari-sons of two or more of the percent changes in the chain index also reflect changes in the com-position of output. The fixed-weighted price index uses as weights the composition of outputin 1972. Accordingly, comparisons over any timespan reflect only changes in prices.

Table 27.Fixed-Weighted Price Indexes forProduct, 1972 Weights (7.2)

Gross National

Gross national product ..Personal consumption expenditures

Durable goods - -Nondurable goods . .Services


NonresidentialStructures -Producers' durable equipment _ .

ResidentialFarm structuresProducers' durable equipment

ExportsImports - - -

Government purchases of goods andservices

Federal . . ---State and local

Addenda:Gross domestic product _ - _

Business -


116.3117.1108.4125.1112.8

118.6116.7127.5110.5122.3

147.4169.3

118.9118.5119.2

115.9116.1

126.5126.4117.3134.9121.6

133.1133.0141.5128.1133.4

164.4188.2

129.6131.8128.1

126.1126.6

121.5121.9114.1130.6116.5

126. 1125.8138.4118.6126.8

160.5186.0

124.9126.0124.2

121.0121.5

123.8123.7114.4132.2119.0

130.7130.1141.1123.9131.8

164.8189.2

126.9128.3125.9

123.3123.9

125.2124.9116.7133.0120.3

132.5132.4141.1127.5132.5

163.2188.2

128.4130.1127.2

124.7125.2

127.4

127.4117.8136.5122.3

133.3133.6141.1129.3132.6

164.6187.5

130.1132.1128.8

126.9127.5

129.6129.4119.9138.0124.7

136.0135.9142.9131.9136.2

164.8187.9

132.8136.4130.5

129.2129.5

130.9130.4121.3137.6126.7

138.5137.8144.1134.2139.6

166.3189.7

134.0137.3131.8

130.4130.9

Table 28.Current Dollar Cost and Profit Per Unit of ConstantDollar Gross Domestic Product of Nonfinancial CorporateBusiness (7.8)

Current dollar cost and profit perunit of constant dollar grossproduct i -

Capital consumption allowances withcapital consumption adjustment

Net domestic productIndirect business taxes plus transferDomestic income

Compensation of employeesCorporate profits with inventory

valuation and capital con-sumption adjustments

Profits tax liabilityProfits after tax with inventory

valuation and capital con-sumption adjustments

Net interest

Dollars

1.159

.1121.047

.123

.924

.788

.091

.061

.029

.045

1.270

.1311.139

.1371.002.836

.116

.053

.063

.050

1.215

.1231.092

.129

.963

.831

.081

.058

.023

.050

1.248

.1301.118

.135

.983

.848

.085

.041

.043

.051

1.258

.1301.128

.136

.992

.829

.113

.048

.065

.050

1.275

.1311.144

.1371.007.824

.133

.060

.073

.050

1.296

.1331.164

.1391.025.843

.131

.061

.070

.051

1.311

.1331.178

.1341.044.853

.138

.065

.074

.052

1? EqffihedXto fir gross domestic product of nonfinancial corporate business withthe decimal point shifted two places to the left.


BY SHELBY W. HERMAN, GERALD F. DONAHOE, AND JOHN C. HINRICHS

Manufacturing and Trade Inventoriesand Sales in Constant Dollars,

1959 to First Quarter 1976J. HIS article introduces constant-dol-

lar quarterly estimates of inventoriesand sales in manufacturing and tradethat provide industry detail. They are animproved tool for analyzing inventory-sales relationships, particularly inperiods of rapidly changing prices. Forsuch analysis, sales customarily havebeen stated in current dollars and in-ventories in book values. Book valuesreflect an amalgam of prices of currentand prior periods that depends on ac-counting practices and the length oftime goods are held in inventory. Forexample, if a firm uses the first-in-first-out (FIFO) method and its inventoryturns over once in a 3-month period,about one-third of the book value in-ventory is valued in the prices of the

latest month and the remainder inprices of the prior 2 months. In a periodof rising prices, the book value in-ventory is biased downward relative tosales in such a case. The inventory-sales(IS) ratios in this article are free of thisbias because both inventories and salesare expressed in constant dollars.

The new inventory detail presentedhere underlies the inventory estimatesshown regularly in table 7 of theNational Income and Product Tablesin the SURVEY OF CURRENT BUSINESS. 1

1. In addition to manufacturing and trade, the estimatesshown in table 7 include nonm,erchant wholesalers, othernonfarm industries, and farms. Nonmerchant wholesalersare manufacturers' sales branches, petroleum bulk stationsand bulk terminals, farm assemblers, sales agents, and brokersas denned in the 1967 Census of Business. Other nonfarmindustries are mining, contract construction, transportation,communication, public utilities, finance, insurance, realestate, and services.

Manufacturing and Trade: Constant-Dollar Inventories, Sales,and Inventory-Sales Ratios

CHART 1

Billions of 1972 $ (Patio scale)250

200

150

10090807060

Inventories

-INVENTORY-SALES RATIOSRatio (Ratio scale)2.0

1.6

1.21959 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76

U.S. Department of Commerce, Bureau of Economic Analysis 76-5-1

The new quarterly estimates of con-stant-dollar sales are consistent withthe annual constant-dollar sales usedin the estimation of GNP by industry.

The new estimates are for the periodfrom the first quarter of 1959 to thefirst quarter of 1976. Charts 1 through 4show constant-dollar inventories, sales,and the I-S ratios for manufacturingand trade combined, for manufacturing,for merchant wholesalers, and for retailtrade. Table 1 shows constant-dollarinventories for 13 manufacturing in-dustries, 3 categories of merchantwholesalers, and 4 categories of retailtrade. Tables 2 and 3 provide similarindustry detail for constant-dollar salesand I-S ratios. These estimates will beupdated each quarter in the SURVEY OFCURRENT BUSINESS.Inventory developments

This section (1) compares the newconstant-dollar I-S ratios for manu-facturing and trade with the conven-tional book value ratios and with theconstant-dollar ratios of inventories tofinal sales of business, (2) examines theindustry patterns of inventories rela-tive to sales in the recent cycle, (3)considers whether the new I-S ratios bydetailed industry exhibit long-termtrends, and (4) considers whether thenew I-S ratios have been affected byshifts in the relative importance of thedetailed industries.

Comparison of alternative I-S ratios.From 1959 to 1968, the constant-NOTE.The estimates of constant-dollarretail sales were prepared by James C. Byrnes.Stephen P. Baldwin, Teresa L. Weadock, andMary K. Osinalde assisted in the preparationof the other estimates.

11


12 SUEVEY OF CUERENT BUSINESS May 1976

CHART 2

Manufacturing: Constant-Dollar Inventories, Sales, and Inventory-Sales Ratio

Billions of 1972 $ (Ratio scale)150

10090807060

50

40

30

Ratio (Ratio scale)2.5

2.0

1.5

INVENTORY-SALES RATIO

1959 60 61 62 63 64 65 66 67 69 70 71 72 73 74 75 76

U.S. Department of Commerce, Bureau of Economic Analysis

dollar I-S ratios and the conventionalratios based on book value inventoriesmove similarly, with the constant-dollarratios about 1 to 3 percent higher(chart 5). After 1968, the constant-dollar ratios steadily increase relativeto the book value ratios. The differencebecomes more pronounced beginningwith the second quarter of 1973, andincreases rapidly to 10 percent by thefirst quarter of 1975, when the I-Sratios peak. During 1975, the differenceincreases only 2 percentage points, toabout 12 percent at the end of the year.In the first quarter of 1976, the dif-ference falls to about 11 percent.

The difference between the two ratiosreflects the prices of prior periods in thebook value of inventories, which im-parts a downward bias to the book valueratios relative to the constant-dollarratios in a period of rising prices. Thewidening of the difference in 1973 and1974 reflects the acceleration of infla-tion. The stabilization and decrease inthe past year reflect its deceleration.

The constant-dollar ratios for manu-facturing and trade show a greaterbuildup in inventories relative to salesin 1973 and 1974 than do the constant-dollar ratios of inventories to final salesof business (chart 6). The subsequentdecline is also somewhat greater. The

manufacturing and trade ratio in thefirst quarter of 1976 is high relative toits level in 1959-73. The business ratiois not as high.

The two constant-dollar ratios differin several ways with respect to coverageand statistical sources. The main dif-ferences