SCB_011990

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

January 1990 / Volume 70 Number

SURVEY OF CURRENT BUSINESS

U.S. Department of CommerceBobert At Mosbacher / SecretaryMchaeiB.Darby7 Undersecretary

for Economic Affairs

Bureau of Economic AnalysisAllan; H*Y0a|f I JOir^eior :Carol S, Carson / Deputy Director

Editor-in-Chief: Carol S. CarsonManaging Editor: LelandL. Scott

Staff Contributors to This Issue: Robert L.Brown, Rudolph & DePass, Douglas R, Fox,Howard L. Ftiedrf^rg, Baniel H. Cbrnick, later-industry Economics Division, Daniel J. Larkins,Larry R. Moran, Ralph W. Morris, National Incomeand Wealth Division, Mira A. Piplani, Charles S.Robinson,

SURVEY OP CURRENT BUSINESS. Publishedmonthly by the Bureau of Economic Analysis of theU.S. Department of Commerce. Editorial corre-spondence should be addressed to the Editor-in-Chief, SURVEY OF CURRENT BUSINESS, Bureau of Eco-nomic Analysis, U.S. Department of Commerce,Washington, tM3 0230. =

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The Secretary of Commerce has determinedthat the publication of this periodical is necessaryin the transaction of the public business requiredby law of this Department*

1 Business Situation2 GNPinl9893 Components of Real GNP in the Fourth Quarter7 Prices7 Personal Income

10 National Income and Product Accounts Tables10 Selected NIPA Tables

24 Composite Indexes of Leading, Coincident, andLagging Indicators

25 Regional Perspectives25 Total Personal Income Growth in Recent Quarters

27 State Personal Income: Summary Estimates, 1989:111

29 Accounting for Regional Differences in Per CapitaPersonal Income Growth: An Update and Extension

41 Annual Input-Output Accounts of the U.S. Economy, 1985

Blue pages: Current Business Statistics(See page S-36 for subject index to Current Business Statistics)

Inside back cover: BEA Information

'

I J 1930SUPT. DOC. NO. C "5^

.-Tliis issue of the SUBWY went to the printed on February 7,1900* Itincorporates data from the following monthly BEA news releases:

Gross National Product (Jan. 26V; Personal Income and Outlays (Jan, 29), and

Composite Indexes of Leading, Coincident, and LaggingIndicators (Jan, SIX


the BUSINESS SITUATION

RrEAL GNP, a measure of U.S. pro-duction, increased at an annual rateof ^2 percent in the fourth quarter af-ter increasing 3 percent in the third(chart 1). Fourth-quarter growth washeld down by a sharp drop in mo-tor vehicle production (which reducedgrowth about 1 percentage point) anda strike at a major aircraft manufac-turer (which reduced growth about ^2percentage point).

The Loma Prieta earthquake, whichstruck northern California in Octo-ber, did not substantially affect thefourth-quarter growth of real GNP butdid affect real net national product(NNP), another measure of U.S. pro-duction. Real NNP was unchanged inthe fourth quarter but would have in-creased 1^2 percent if the earthquakehad not struck. The difference be-tween GNP and NNP is capital con-sumption allowances with capital con-sumption adjustment, a measure thatincludes both the normal using up of

fixed capital in production and acciden-tal damage to fixed capital. The waysin which accidental damage affect thenational income and product accounts

CHART 1Selected Measures:Change From Preceding Quarter

(NIPA's) were described in the October ^rcentand November 1989 "Business Situa-tion" articles; the impact of the earth-quake on components of NNP is re- 5ported in the next section.

oReal gross domestic purchases, a

measure of U.S. demand, increased1 percent in the fourth quarter after

5increasing 3T/2 percent in the third.Real final sales to domestic purchasersedged down, but the pace of inven- ~10tory accumulation accelerated. The

10changes in both final sales and in-ventory investment were dominated bymotor vehicles.

Inflation increased in the fourthquarter from a relatively low rate in the third: Both the GNP price indexand the price index for gross domestic

5purchases increased 4 percent after in-

REAL GNP

Looking Ahead...

National Income and Product Account Revisions. Revised estimates forthe 3-year period beginning with the first quarter of 1987 will be presentedin the July SURVEY. The presentation of the next comprehensivethat is,benchmarkrevision has been delayed from November of this year to July1991.

Business Statistics, 1961-88. The 26th edition of this biennial volume willsoon be available from the Government Printing Office. It contains monthlyor quarterly data for 1985-88 and annual data for 1961-88 for all series inthe "S" (or blue) pages of the SURVEY and for selected BEA series. Orderinformation will be in the February SURVEY.

Recruitment...

Senior Level Positions. BEA expects to begin actively recruiting for twosenior positionsAssociate Director for Regional Economics and AssociateDirector for International Economicsin the near future. These are careerreserved positions in the Senior Executive Service. For more information,contact the BEA Administrative Officer (202-523-0508).

-1010

o J

GNP PRICE INDEX (FIXED WEIGHTS)

10 GROSS DOMESTIC PURCHASE PRICE INDEX(FIXED WEIGHTS)

1986 1987 1988 1989Note.Percent change at annual rate from preceding quarter;

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


SURVEY OF CURRENT BUSINESS January 1990

creases of 3 percent and 2x/2 percent,respectively, in the third quarter.1

The effect of the Loma Prietaearthquake.In the NIPA's, earth-quake damage to structures and equip-ment is estimated at $13 billion in con-stant dollars and $15 billion in cur-rent dollars (annual rates). These esti-mates are based on information froman insurance industry trade associa-tion and from officials of Federal andCalifornia disaster agencies.

These very rough estimates coveronly damage to structures and equip-ment owned by businesses (includ-ing damage to owner-occupied resi-dences). Note, in particular, that dam-age to structures owned by govern-ments (such as roads and bridges) isexcluded because those structures aretreated in the NIPA's as purchases oncurrent account and are, therefore, notcapitalized.2

1. The regularly featured estimates of real GNP andGNP prices are based on 1982 weights. An alterna-tive measure of price change that uses more currentweightsthe chain price indexis published in table8.1 of the "Selected NIPA Tables." The GNP chain priceindex can be used to calculate an alternative measureof real GNP growth based on more current weights; thismeasure of GNP increased at annual rates of */2 per-cent in the fourth quarter and 3a/2 percent in the third.Growth of real GNP in 1987 dollars, another measurebased on more current weights, will be published in the"Reconciliation and Other Special Tables" in the Febru-ary SURVEY OF CURRENT BUSINESS.

2. In its annual estimates of tangible wealth (usuallypublished in August issues of the SURVEY OF CURRENTBUSINESS) BEA does estimate the stock of government-

Four types of income were affectedby the earthquake: Rental income ofpersons, proprietors' income, corporateprofits, and compensation of employ-ees. These incomes are not availablein constant dollars in the NIPA's; thefollowing estimates are in current dol-lars and are expressed at annual rates.

Uninsured earthquake damage re-duced rental income of persons by $6billion, proprietors' income by $!1/2 bil-lion, and corporate profits by $4 billion.In addition, benefits paid by insurancecompanies reduced their profits by$3^2 billion, for a total effect on corpo-rate profits of $7*/2 billion. (Corporateprofits for the fourth quarter will bepublished in the March 1990 SURVEY.)The total reduction in these incomeswas very similar to that caused byHurricane Hugo in the third quarter;however, the effect on the individualcomponents was quite different. In-surance protection against earthquakedamage is much less prevalent thanagainst hurricane damage. Thus, mostof the damage to residences causedby the earthquake was reflected in re-duced rental income of persons; mostof the damage caused by the hurri-cane was reflected in reduced insur-ance company profits.

owned fixed capital. Earthquake damage to these stocksis estimated at $3 billion in current dollars and $2*/2billion in constant dollars (not annual rates). In con-trast, third-quarter hurricane damage to government-owned property was assumed to be negligible.

NOTE.Quarterly estimates in the national income and product accounts are expressed atseasonally adjusted annual rates, and quarterly changes are differences between these rates.Quarter-to-quarter percent changes are annualized. Real, or constant-dollar, estimates are ex-pressed in 1982 dollars. The advance GNP estimate for the fourth quarter is based on thefollowing major source data, some of which are subject to revision. (The number of months forwhich data were available is shown in parentheses.)

Personal consumption expenditures: Sales of retail stores (3), and unit auto and trucksales (3);

Nonresidential fixed investment: Unit auto and truck sales (3), construction put in place (2),manufacturers' shipments of machinery and equipment (2), and exports and imports ofmachinery and equipment (2);

Residential investment: Construction put in place (2), and housing starts (3);Change in business inventories: Manufacturing and trade inventories (2), and unit auto in-

ventories (3);Net exports of goods and services: Merchandise exports and merchandise imports (2);Government purchases of goods and services: Federal outlays (2), and State and local con-

struction put in place (2);GNP prices: Consumer Price Index (3), Producer Price Index (3), nonpetroleum merchandise

export and import price indexes (3), and values and quantities to calculate a unit-valueindex for petroleum imports (2).

Effective with this estimate of GNP, BEA is using the monthly export and import prices thathave been published on a regular basis by the Bureau of Labor Statistics since early 1989.Unit-value indexes previously published by the Bureau of the Census were discontinued afterJuly 1989. BEA continues to calculate a unit-value index only for petroleum imports.

The impact of the earthquake onrental income of persons and on propri-etors' income lowered fourth-quarterpersonal income by $7*/2 billion; a $x/2billion increase in wages and salariespaid in rescue and cleanup operationsoffset this reduction only slightly.

Motor vehicles.Motor vehicle out-put declined 22^2 percent in the fourthquarter after a moderate decline in thethird. Sales plummeted even morealmost 50 percentafter a large in-crease. Reflecting the bigger drop insales than in production, inventoriesincreased $5^2 billion after declining$11 billion in the third quarter.3

Boosted by the most attractive sales-incentive programs ever offered bymanufacturers, new car sales hadsurged to 10.8 million units (season-ally adjusted annual rate) in the thirdquarter. (See "Motor Vehicles, ModelYear 1989" in the November 1989SURVEY for a discussion of the factorsunderlying the weak sales in the springthat had induced manufacturers to of-fer these programs.) With the expira-tion of the programs and the announce-ment of substantial price increases atthe beginning of the 1990 model year,car sales tumbled to 8.7 million units inthe fourth quartertheir lowest levelsince the first quarter of 1983. Late inthe fourth quarter, manufacturers in-troduced new incentives, but they werenot as attractive or as widespread asthose in the third. Sales recoveredslightly in December, but not nearlyenough to make up for the falloff in Oc-tober and November.

The quarterly pattern of new trucksales, also affected by incentive pro-grams, was similar to that of new cars.Truck sales jumped to 5.4 million unitsin the third quarter and then fell to 4.6million in the fourth.

GNP in 1989

The economic recovery/expansionfrom the business cycle trough ofNovember 1982 continued: 1989marked the seventh consecutive year ofexpansion, by far the longest peacetimeexpansion in U.S. history. No previouspeacetime expansion exceeded 5 years.

3. Constant-dollar motor vehicle output, final sales,and inventory change are shown in tables 1.18 (autos)and 1.20 (trucks) of the "Selected NIPA Tables."


January 1990 SURVEY OF CURRENT BUSINESS

The pace of expansion slowed consid-erably in 1989, however, as was fore-seen by private economic forecastersat the end of 1988 and as was in-tended by monetary authorities con-cerned about a possible resurgence ofinflation. Evidence of slowing abounds:Real GNP increased 3 percent (duringthe current expansion, only the 2^2-percent increase in 1986 was lower) af-ter a 4x/2-percent increase in 1988 (ta-ble 1). Civilian employment rose 0.2percentage point less than in 1988, andthe unemployment rate fell 0.5 per-centage point less. The Federal Re-serve Board index of industrial produc-tion increased 3.3 percent in 1989 af-ter increasing 5.7 percent in 1988; themanufacturing capacity utilization in-dex changed little after increasing 2%percentage points in 1988.

With only one exception, all majorcomponents of GNP increased less (ordeclined more) than in 1988; slow-downs in exports and in nonresiden-tial fixed investment were particularlypronounced and accounted for four-fifths of the deceleration in GNP. Theonly major component to increase morethan in 1988 was government pur-chases of goods and services, which re-bounded from a 1988 level that hadbeen depressed by sizable withdrawalsof crops from Commodity Credit Cor-poration inventories during and afterthe 1988 drought. (Withdrawals aretreated as negative purchases in theNIPA's.)

Although the 11-percent increase inexports in 1989 was lower than inthe boom years of 1987 and 1988, it

Table 1.Changes From Preceding Year in RealGross National Product and Prices 1

[Dollars are in billions of 1982 dollars]

Gross national productPersonal consumption

expendituresFixed investment

NonresidentialResidential

Change in businessinventories

Net exportsExportsImports

Government purchases

Addenda:Gross domestic purchasesFinal sales to domestic

purchasersDisposable personal income

Real GNP

Dollars

1988

170.7

84.737.638.3-.7

4.240.879.238.43.3

129.8

125.6116.6

1989

118.2

70.112.117.3-5.2

-3.418.657.538.920.7

99.6

103.0113.5

Percent

1988

4.4

3.45.88.4-.4

17.66.8.4

3.3

3.24.4

1989

2.9

2.71.83.5

-2.7

10.86.42.6

2.4

2.54.1

GNPPrices

Percent

1988

4.2

4.33.23.43.1

5.35.04.6

4.2

4.1

1989

4.5

4.73.93.83.9

"1114.14.7

4.6

4.6

was higher than the growth rates inall other years of the current expan-sion. Exports started the year strongbut weakened dramatically in the thirdquarter. In merchandise exports, theweakening was evident in all end-usecategories except in industrial suppliesand materials and in consumer goods,each of which increased at about thesame rate as in 1988. Import growthslowed only slightly, from 7 percent in1988 to 6*2 percent in 1989. The pat-tern of imports differed from that of ex-ports; imports started the year weakand were strong thereafter.

Nonresidential fixed investment in-creased S1^ percent in 1989, less thanin any other year of the current ex-pansion except 1983 and 1986, whenit declined. Investment both in struc-tures and in producers' durable equip-ment weakened in 1989: Structuresslipped 1^2 percent after no change in1988, and producers' durable equip-ment slowed to a 5-percent rate of in-crease from llx/2 percent. Investment,which had been anemic in the secondhalf of 1988, rebounded in the first halfof 1989 but then ebbed again, doubt-less reflecting lower corporate profits,reduced cash flow, and the weakeningof foreign and domestic demand.

Personal consumption expendituresslowed in 1989, mirroring a slowdownin the growth of real disposable per-sonal income. A $3x/2 billion drop in in-ventory investment, from $28 billion to$24x/2 billion, was more than accountedfor by nonfarm inventories. Residen-

tial investment fell more than in 1988,reflecting a sharper decline in single-family construction.

Components of Real GNP inthe Fourth Quarter

Residential investment and govern-ment purchases of goods and serviceswere the only major components of fi-nal sales to increase in the fourth quar-ter. More than one-half of the in-crease in residential investment wasaccounted for by brokers' commissions;government purchases were boosted byinventory transactions of the Commod-ity Credit Corporation that more thanoffset a decline in defense purchases.In the other major components, thesteep drop in purchases of motor ve-hicles more than accounted for the de-clines in personal consumption expen-ditures and nonresidential fixed invest-ment and, indirectly, for the increasein inventory investment. Lower ex-ports of civilian aircraft, reflecting thestrike in the aircraft industry, morethan accounted for the decline in netexports.

Personal consumption expendituresReal personal consumption expendi-

tures (PCE) changed little in the fourthquarter after a strong increase in thethird; in the first two quarters of theyear, increases had been modest (table2). Fourth-quarter PCE was held down

Table 2.Real Personal Consumption Expenditures[Seasonally adjusted at annual rates]

Personal consumption expenditures

Durables

Furniture and household equipment .Other durables

NondurablesFoodClothing and shoesEnergy 'Other nondurables

Services.. .Housing .Household operation

Energy 2 .Other

TransportationMedical careOther services....

Billions of 1982 dollars

Level

1989:IV

2,689.3

421.6170.9177.972.8

917.5460.7171.0123.2162.6

1,350.3375.8169.484.385.1

101.1305.0398.9

Change from preceding quarter

1989

I

13.3

-1.2-4.5

6.8-3.4

3.03.9.4

-3.21.9

11.51.6

-2.3-2.6

.3

.15.17.0

II

12,7

5.6.9

3.71.0

-5.3-4.6

.8-.7-.9

12.32.11.0.7.2.8

4.14.4

in

36.4

11.511.4-1.1

1.2

11.11.87.5.4

1.4

13.91.9.1

-.4.6

1.75.05.3

rv

-0.8

-14.8-17.5

.52.2

-3.3-2.5-2.3

1.9-.3

17.42.24.93.31.62.36.9.9

Percent change from precedingquarter

1989

I

2.0

-1.1-9.617.2

-17.6

1.33.41.0

-9.94.8

3.61.8

-5.4-rll.9

1.5.4

7.47.5

II

1.9

5.52.18.76.0

-2.3-3.9

2.0-2.3-2.2

3.82.32.53.51.03.45.84.6

in

5.6

11.328.4-2.4

7.1

5.01.6

19.41.33.5

4.32.1.2

-2.02.97.27.05.5

IV

-0.1

-12.9-32.3

1.113.1

-1.4-2.1-5.26.4-.7

5.32.4

12.517.37.99.69.6.9

1. GNP price index (fixed weights); based on seasonally adjustedindex numbers (1982=100).

1. Gasoline and oil, and fuel oil and coal.2. Electricity and gas.NOTE.Percent changes in major aggregates are found in table 8.1 of the "Selected NIPA Tables.' Dollar levels are found in table 2.3.


SURVEY OF CURRENT BUSINESS January 1990

primarily by the drop in purchases ofmotor vehicles. PCE less motor ve-hicles increased 2x/2 percent after in-creasing 4 percent in the third quarter;the fourth-quarter increase was com-parable to those in the first and secondquarters.

Expenditures for nondurable goodsdeclined 1 ^ 2 percent in the fourth quar-ter after climbing 5 percent in thethird. Clothing and shoes accountedfor two-thirds of the downswing, al-though all major components exceptfuel oil and coal declined in the fourthquarter after increasing in the third.The large downswing in clothing andshoes reflected a large upswing inprices. Fuel oil and coal jumped in thefourth quarter, in response to the se-vere cold weather in much of the coun-try in December.

Expenditures for services increased5*/2 percent in the fourth quarter af-ter increasing 4^2 percent in the third.All components except "other" servicescontributed to the acceleration. Elec-tricity and gas (also affected by thesevere cold), transportation services,and medical care services all had siz-able increases. "Other" services in-creased slightly after a substantial in-crease; the slowdown was mostly dueto unusually small increases in expen-ditures for private education and re-search and for religious and welfareservices.

Factors usually associated with con-sumer spending weakened, but only alittle, in the fourth quarter. Real dis-posable personal income decelerated,but its 3^2-percent increase over thepast four quarters equaled its aver-age rate of growth over the expan-sion. Consumer confidence (as mea-sured by the Index of Consumer Sen-timent prepared by the University ofMichigan's Survey Research Center)declined slightly but remained at alevel that historically has been associ-ated with a healthy economy. (The dipin consumer confidence reflected smallstep-ups in the inflation and unemploy-ment rates.)Nonresidential fixed investment

Real nonresidential fixed investmentdeclined in the fourth quarter after anincrease in the third quarter and larger 0.5increases in the first two quarters (ta-ble 3). Structures edged up slightlyin the fourth quarter, but producers'

0durable equipment (PDE) dropped.

Structures increased l1^ percent af-ter an 8-percent increase in the third

quarter. Construction of nonresiden-tial buildings dropped after a third-quarter increase, continuing the see-saw pattern that had prevailed earlierin the year. Oil well drilling posted athird consecutive increase in the fourthquarter, and construction by publicutilities posted a third consecutivedecline.

PDE dropped 4x/2 percent in thefourth quarter after an increase ofabout the same amount in the third. Asteep drop in purchases of transporta-tion equipment more than accounted

for PDE's decline; other categories ofPDE increased more than in the thirdquarter, although the step-up in pur-chases of industrial equipment wassmall.

Many factors point to continued re-straint in capital spending in the nearfuture. Corporate profits and cashflow have been weak since at leastthe end of 1988; increases in real fi-nal sales (excluding inventory transac-tions of the Commodity Credit Corpo-ration) have been modest or nonexis-tent; and capacity utilization in man-

Table 3.Real Gross Private Domestic Fixed Investment[Seasonally adjusted at annual rates]

Gross private domestic fixed investment

Nonresidential . .

StructuresNonresidential buildings, excluding farmsPublic utilities .Mining exploration shafts, and wells .Other

Producers' durable equipmentInformation processing and related equipmentIndustrial equipmentTransportation and related equipmentOther .

ResidentialSingle-family structuresMultifamily structuresOther


Level

1989:IV

700.1

514.0

120.877.123.215.84.7

393.3195.374.055.169.0

186.088.618.179.4


1989

I

5.8

8.3

-.31.7.3

-2.1-.2

8.68.12.9

-4.01.5

-2.5.4.3

-3.1

n

4.1

10.4

-3.0-3.2-.5

.2

.6

13.38.8

-1.44.1.1.8

-6.3-7.2

.3

.6

in

2.0

6.5

2.31.1-.4

'.3

4.42.002.1.3

-4.5-3.2-1.0-.4

IV

-2.6

-3.9

.4-.6-.41.6-.1

-4.34.2.5

-11.83.0

1.2.7

-.71.4


1989

I

3.4

6.9

-1.09.05.1

-45.3-18.1

9.620.217.1

-22.510.0

-5.01.66.4

-14.5

II

2.4

8.6

-9.5-15.1-7.9

6.377.3

14.821.0-7.329.911.8

-12.3-26.2

6.33.1

ffl

1.1

5.2

8.05.9

-6.538.129.5

4.64.30

13.61.8

-9.2-13.3-18.7-2.0

rv

-1.5

-3.0

1.3-3.1-6.653.3-8.1

-4.39.12.7

-54.019.5

2.63.2

-14.17.4

NOTE.Percent changes in major aggregates are found in table 8.1 of the "Selected NIPA Tables." Dollar levels are found in table 5.13.

CHART 2Housing Starts

Million of units2.5

2.0

1.5

1.0

Total

\ r^\f s A--

Multifamily

I I I I I I I I I I M I I I I I I I I M I I i M I i I I I 1 1 1 . I I M I I I I II M I ' l l I 1 I I1985 1986 1987

Seasonally Adjusted at Annual Rates1988 1989




ufacturing dropped in the third andfourth quarters. Interest rates areone of the few factors that had beenpointing in the other direction: Theyield on new issues of high-grade cor-porate bonds dropped almost 1 percent-age point from the first to the fourthquarters, but it moved up during thefourth quarter.

Residential investmentReal residential investment in-

creased in the fourth quarter afterthree consecutive quarterly declines.Small changes in single-family andmultifamily construction were offset-ting, while "other" residential invest-ment increased. (The "other" compo-

nent includes major replacements, ad-ditions and alterations, mobile homesales, and brokers' commissions onhouse sales.)

Single-family construction increased3 percent in the fourth quarter. Single-family starts, however, declined 7^2percentpartly because of the verycold weatherafter changing little inthe second and third quarters (chart2). The divergence between construc-tion and starts reflected an increase inthe average value of starts.

Multifamily construction declined 14percent after a decline of 18^2 percentin the third quarter. Fourth-quartermultifamily construction was 38 per-cent below its peak in the second quar-

Table 4.Change in Real Business Inventories[Billions of 1982 dollars; seasonally adjusted at annual rates]

Change In business inventories

Farm . .,

NonfarmManufacturing ,Wholesale tradeRetail trade

Auto dealersOther retail trade

Other.

Addendum:Nonfarm less auto dealers

Level

1988

IV

18.3

-13.6

31.912.21.9

11.66.65.06.2

25.3

1989

I

24.5

7.6

16.93.8

-2.48.49.0-.67.1

7.9

n

19.1

-.5

19,58.34.52.6

-3.05.64.1

22.6

III

21.9

5.6

16.212.02.4

-1.6-9.07.43.4

25.2

IV

32.6

1.3

31.34.78.3

13.83.2

10.64.5

28.1


1989

I

6.2

21.2

-15.0-8.4-4.3-3.2

2.4-5.6

.9

-17.5

n

-5.4

-8.1

2.64.56.9

-5.8-12.0

6.2-3.0

14.7

m

2.8

6.1

-3.33.7

-2.1-4.2-6.0

1.8-.7

2.6

IV

10.7

-4.3

15.1-7.3

5.915.412.23.21.1

2.9

NOTE.Dollar levels for most inventories are found in table 5.11 of the "Selected NIPA Tables."

3

Selected Interest Rates

I > ** !*** i iI M M I I KM I M I I I I I I I I I I I I I I I I I M I I I I I I I I I I I I I I1985 1986

Data: FRB, FLHLMC.


1987 1988 1989

ter of 1986. The rental vacancy rate,although declining in the fourth quar-ter, remained high at 6.8 percent.

The increase in the "other" compo-nent was largely in brokers' commis-sions and reflected increases in boththe average sales price and the num-ber of houses sold. The increase inhouse sales, in turn, reflected declin-ing mortgage interest rates (chart 3).Additions and alterations and majorreplacements also increased, as home-owners repaired damage caused by thehurricane and the earthquake.

Inventory investment

Real inventory investmentthat is,change in business inventoriesincreased $101/2 billion in the fourthquarter, as businesses added $32^2 bil-lion to their inventories after adding$22 billion in the third quarter (ta-ble 4). Inventory investment had in-creased $3 billion in the third quarter.The fourth-quarter pickup in inventoryinvestment was accounted for by non-farm inventories.

Nonfarm inventories increased$311/2 billion in the fourth quarter, al-most double the rates of accumula-tion in the preceding three quarters.For the year as a whole, accumulationamounted to $21 billion, $9*/2 billionless than in 1988. All major categoriesof nonfarm inventories increased lessthan in 1988.

In the fourth quarter, most of thepickup in nonfarm inventory invest-ment was accounted for by a sharp up-swing in inventories held by retail autodealers, although all categories exceptmanufacturing contributed.

In manufacturing, inventory accu-mulation slowed considerably in thefourth quarter. The slowdown waslargely in nondurables, where mostcategories declined or changed little af-ter several quarters of accumulation.In durables, inventories of transporta-tion equipment other than motor vehi-cles continued to grow strongly.

Wholesale trade inventories in-creased substantially more than in thethird quarter. A sharp upswing in in-ventories of merchant wholesalers wasaccounted for partly by inventories offoreign autos and partly by invento-ries of groceries and farm products.Inventories of nonmerchant whole-salers declined after increasing; thedownswing was largely in inventoriesheld in petroleum bulk stations andterminals.


6 SURVEY OF CURRENT BUSINESS January 1990

Inventories of retailers other thanauto dealers again increased strongly.In durables, the fourth-quarter accu-mulation was mainly in furniture andappliance dealers; hvnondurables, itwas in food stores and departmentstores.

Farm inventories increased $!1/2 bil-lion after a $5T/2 billion increase. Forthe year as a whole, farm inventoriesincreased $3a/2 billion; in 1988 theyhad declined $3 billion. In the fourthquarter, a downswing in inventories ofcrops held by farmers resulted fromthe combination of a pickup in mar-ket sales and a slowdown in net with-drawals of crops from the CommodityCredit Corporation under the commod-ity loan program.

Reflecting the higher rate of inven-tory accumulation and the slower paceof final sales, the ratio of nonfarm busi-ness inventories to final sales of busi-ness moved up to 2.83 in the fourthquarter. The fourth-quarter ratio wasslightly above the 2.80 to 2.82 rangeof the past 2 years, but it (alongwith other aggregate inventory-salesratios) was still quite low by historicalstandards.

An alternative set of constant-dollarinventory-sales ratios for the manu-facturing and trade industries paint asimilar picture while providing moredetailed information about inventorydevelopments in 1989. (Manufactur-ing and trade inventories account for

Table 5.Constant-Dollar Inventory-Sales Ratios '[Ratio, based on 1982 dollars]

Inventories and final sales ofbusiness:Inventories to final salesNonfarm inventories to final salesNonfarm inventories to final sales of

goods and structures .. ..

Inventories and sales formanufacturing and trade:

ManufacturingMerchant wholesalersRetail trade

Auto dealersOther

1988

IV

3.052.82

458

1 481541341.531.781.45

I

3.052.81

456

1 501571331.551.931.45

19

II

3.042.80

4.55

1 501571.331.551.88146

89

III

3.042.80

4.57

1 491.581.321.521.72146

IV

3.072.83

467

1 511591.321.561 841 48

1. All ratios are based on end-of-quarter inventories and quarterlysales at monthly rates. Thus, the ratios measure the number of monthsthat the current rate of sales could be sustained from the current levelof inventories. For the first set of ratios, sales are limited to those tofinal users. For the second set of ratios, sales reflect various degrees ofdouble counting. (For example, manufacturers' sales include interplanttransfers within the same company, intercompany sales within the sameindustry, and interindustry sales within manufacturing.) Ratios shownfor manufacturing and trade for the fourth quarter of 1989 are those forthe month of November.

NOTE.Dollar levels for most inventories and final sales of businessare found in table 5.11 of the "Selected NIPA Tables." Manufacturingand trade inventories and sales estimates are published in the March,June, September, and December issues of the SURVEY OF CURRENTBUSINESS.

approximately 83 percent of total non-farm business inventories; manufac-turing and trade sales include inter-mediate salesthat is, sales from oneindustry to anotheras well as salesto consumers.) Based on data throughNovember, the inventory-sales ratiofor manufacturing and trade edged upover the course of 1989 (table 5). Inparticular, the ratio for manufactur-ing moved higher; the rise was dueto a steady buildup in inventories ofdurable goods. The ratio for retailtrade also was higher at the end of theyear than at the beginning; part of thisbuildup was in inventories held by autodealers and part was in inventories ofretailers of nondurable goods.

Net exportsReal net exports fell $4^2 billion in

the fourth quarter, almost as much asin the third (table 6). Net exports be-gan the year with a large increasewith exports jumping and imports edg-

ing downbut increased much lessin the second quarter when importssurged.

Merchandise trade was responsiblefor the fourth-quarter decline, as ex-ports increased but imports increasedmore. Merchandise exports increased$7 billion (or 7^2 percent) in the fourthquarter after increasing $3!/2 billionin the third. Agricultural exports re-bounded from a third-quarter drop thatreflected, in part, lower corn shipmentsto the Soviet Union and lower soy-bean shipments to Western Europe.Nonagricultural exports increased inthe fourth quarter, but little more thanone-half as much as in the third. Nona-gricultural exports were held down inthe fourth quarter by a sharp drop inexports of civilian aircraft, reflectingthe strike; other nonagricultural ex-ports, for the most part, posted largerincreases than in the third quarter.

Merchandise imports increased$H1/2 billion (or 9x/2 percent) in thefourth quarter after increasing $17

Table 6.Real Net Exports of Goods and Services[Seasonally adjusted at annual rates]

Net exports of goods and services

ExportsMerchandise

AgricultureNonagriculture .

Services ..

ImportsMerchandise

PetroleumNonpetroleum

Services


Level

1989.-IV

-61.8

600.2397.639.9

357.7202.6

662.0515.996.0

419.9146.1


1989

I

18.8

18.313.93.9

10.14.4

-.6-6.0-2.4-3.6

5.3

II

3.8

17.814.4

.613.83.4

14.110.13.76.43.9

ra

-5.9

5.63.7

-3.67.31.9

11.516.85.8

11.0-5.2

IV

-4.7

7.17.02.84.2.1

11.811.61 413.0

.2


1989

I

14.016.450.613.19.4

-.4-4.9

-10.2-3.615.8

n

13.116.46.1

17.77.1

9.38.7

17.96.7

11.0

m

3.93.9

-31.08.73.8

7.414.527.811.6

-13.1

IV

4.97.4

33.84.8

.2

7.59.5

-5.613.4

.5

NOTE.Percent changes in major aggregates are found in table 8.1 of the "Selected NIPA Tables.'major aggregates) and table 4.4 (for end-use category detail). Dollar levels are found in table 4.2 (for

Table 7.Real Government Purchases of Goods and Services[Seasonally adjusted at annual rates]

Government purchases of goods and services

FederalNational defense ... ...Nondefense . .

Commodity Credit Corporation inventory change ;Other . ...

State and localStructures ...Other....


Level

1989:IV

807.9

333.6254.779.0-4.783.7

474.258.7

415.5


1989

I

-6.7

-8.4-7.2-1.2-1.1-.1

1.7-1.3

3.0

n

10.6

8.11.46.76.4.3

2.5-.53.0

III

-5.0

-7.54.3

-11.8-10.8-1.0

2.5-.53.0

IV

2.6

-2.5-5.4

3.03.00

5.01.73.3


1989

i-3.3

-9.4-10.6-5.7

-.5

1.5-8.5

3.0

II

5.4

10.02.2

37.4

1.4

2.2-3.4

3.0

in

-2.4

-8.46.9

-43.9

-4.6

2.2-3.4

3.0

IV

1.3

-2.9-8.016.7

0

4.312.53.2

NOTE.Percent changes in major aggregates are found in table 8.1 of the "Selected NIPA Tables." Dollar levels are found in table 3.8B.


January 1990

billion in the third. Petroleum im-ports edged down, but imports of non-petroleum products registered theirlargest increase in 2 years. Amongnonpetroleum imports, capital goods(except autos) registered the biggest in-crease (as computer imports jumpedfor the fourth consecutive quarter), butmost other end-use categories also reg-istered sizable increases.

Small fourth-quarter increases inexports and imports of services re-flected changes in interest income thatwere primarily due to changes in theamounts borrowed and lent ratherthan to changes in interest rates.

Government purchases

Real government purchases in-creased in the fourth quarter af-ter a decline in the third; some-what larger ups and downs hadbeen posted in the first two quar-ters (table 7), The fourth-quarterincreaseas well as the third-quarterdeclinereflected the pattern of Com-modity Credit Corporation (CCC) in-ventory transactions; government pur-chases excluding CCC inventory trans-actions declined slightly after anincrease.

Federal defense purchases declined$5a/2 billion in the fourth quarter,following a $4*/2 billion increase inthe third. The decline was concen-trated in purchases of military equip-ment. Spending on national defensedeclined for the second consecutiveyearthe first back-to-back declines inannual defense spending since 1975-76reflecting declining budget author-ity for procurement since fiscal year1985.

In nondefense purchases, the level ofCCC inventories declined in the thirdand fourth quarters$7^2 billion and$4x/2 billion, respectively. These de-clines continued the series of decumu-lations that began in the second quar-ter of 1987 and that was interruptedonly by a small increase in the secondquarter of 1989.

State and local government pur-chases increased $5 billion in thefourth quarter, twice as much as inthe third. Most of the pickup was instructures, which increased after threequarters of decline; other componentsincluded small amounts for the cleanupand rescue operations associated withthe hurricane and earthquake.

SURVEY OF CURRENT BUSINESS

Prices

After slowing in the third quarter,inflation moved about one-half of theway back up toward the rates regis-tered in the first half of the year. TheGNP price index (fixed weights) in-creased 4 percent in the fourth quarterafter increasing 3 percent in the thirdquarter and 5 percent in the first andsecond quarters (table 8). The price in-dex for gross domestic purchases (fixedweights) increased 4 percent after in-creasing 2x/2 percent in the third quar-ter and 5*/2 percent in the first and sec-ond quarters.

In the fourth quarter, as in the firsttwo quarters of the year, the increasein gross domestic purchases prices waslarger than the increase in GNP prices.(Differences in the changes in thesetwo price measures reflect prices of ex-ports and imports.) In the fourth quar-ter, export prices increased less thanimport prices. Sharp changes in importprices in recent quarters are largelytraceable to imported petroleum. Im-ported petroleum prices swung to a241/2-percent increase in the fourthquarter from a 30-^2 percent declinein the third. Among nonpetroleummerchandise imports, auto prices in-creased the most9 percent. (Es-timates of export and import pricesare based primarily on newly availablemonthly series compiled by the Bureauof Labor Statistics; see box on page 2.)

Table 8.Price Indexes (Fixed Weights): ChangeFrom Preceding Quarter

[Percent change at annual rates; based on seasonally adjusted indexnumbers (1982=100)]

GNP

Less.' ExportsPlus' Imoorts

Equals: Gross domestic purchases

Less: Change in business inventories

Equals: Final sales to domesticpurchasers

Personal consumption expendituresFoodEneruvOther personal consumption

expendituresNonresidential structuresProducers' durable equipmentResidential investmentGovernment purchases

Addenda:Merchandise imports

Petroleum and productsOther merchandise

I

4.8

1.686

5.5

5.5

4.85.647

465.34.45.88.0

11.1113.8

2.6

IS

II

5.0

2.557

5.4

5.3

6.37.8

31 5

394.22.27.23.3

6.799.2-2.6

>89in2.9

-.4-44

2.5

2.5

2.22.7

-94

323.92.64.62.8

-7.6-30.6-3.4

IV

3.8

1.75 1

4.1

4.1

4.44.7

-1 4

493.13.72.03.6

4.624.5

1.9

NOTE.Percent changes in major aggregates are found in table 8.1of the "Selected NIPA Tables." Most index number levels are foundin tables 7.1 and 7.3.

PCE prices increased 4^2 percent inthe fourth quarter after a 2-percentincrease in the third. Food, energy,and "other" PCE prices all contributedto the acceleration. PCE food pricesrose more than in the third quarterbut less than in the first half of theyear. The pickup, to 4^2 percent, wasmainly due to a turnaround in porkprices and a surge in prices of dairyproducts and fresh fruits. PCE en-ergy prices declined l1^ percent in thefourth quarter following a 91/2-percentdecline in the third. Gasoline pricesfell 14 percent, somewhat less than inthe third quarter. Prices of electric-ity and gas increased 5 percent after asmall decline. "Other" PCE prices in-creased 5 percent in the fourth quarterafter a 3-percent increase in the third;the pickup was mostly due to reboundsboth in new car pricesreflecting bothincreased list prices and less gener-ous sales incentivesand in clothingprices.

Among the components of fixedinvestment, prices of nonresidentialstructures continued to decelerate. Apickup in PDE prices in the fourthquarter was largely in prices of mo-tor vehicles and communication equip-ment. Prices of residential structuresslowed again.

Prices of government purchases in-creased 3^2 percent in the fourth quar-ter after a 3-percent increase in thethird. The pickup was in prices of Fed-eral defense purchases.

Personal Income

Personal income increased muchmore in the fourth quarter than in thethird (chart 4 and table 9). About one-half of the acceleration was accountedfor by a turnaround in Federal subsidypayments to farm proprietors.

Wage and salary disbursementswere up $49x/2 billion in the fourthquarter, $3*/2 billion more than inthe third. All major private industrycomponents except manufacturing con-tributed to the step-up, reflecting fur-ther gains in employment and averagehourly earnings. Manufacturing wagesand salaries were up less than in thethird quarter; they were boosted $2x/2billion by bonus payments to employ-ees in the motor vehicle industry, butthey were depressed $!1/2 billion by thestrike in the aircraft industry.



Farm proprietors' income increasedin the fourth quarter after a substan-tial decline in the third. Most of the up-swing was due to^ederal agriculturalsubsidy payments, which increased $6billion after declining $8 billion. Thefourth-quarter increase in subsidies in-cluded Conservation Reserve Programpayments and drought assistance pay-ments. Farm income excluding subsi-dies declined for the third consecutivequarter; the fourth-quarter decline wasdue to lower farm prices.

Nonfarm proprietors' income andtransfer payments increased some-

4

Selected Personal Incomeand Saving Measures

Billion $150

120-

what more than in the third quarter.The increase in transfer payments re-flected retroactive social security pay-ments to recent retirees and disasterassistance payments in the aftermathof Hurricane Hugo and the Loma Pri-eta earthquake.

Rental income of persons declinedslightlythe fifth consecutive quar-terly decline. In the third quarter,rental income was reduced $3 billionby the hurricane; in the fourth quarter,it was reduced $6 billion by the earth-quake. The reductions reflected unin-sured losses, which are deducted as anexpense in deriving rental income.

Each of the remaining componentsof personal incomeother labor in-

come, personal dividend income, andpersonal interest incomeincreasedabout as much as in the third quarter.Personal contributions for social insur-ance, which are subtracted in deter-mining the personal income total, reg-istered another small increase.

Personal tax and nontax paymentsincreased $16 billion in the fourthquarter, following a $3^2 billion declinein the third. The increase largely re-flected growth in the taxable earningsbase. The pattern of changes in theseveral preceding quarters was largelydue to the effects of the Tax Reform Actof 1986.

Disposable personal income (DPI) in-creased 7^2 percent in the fourth quar-

Table 9.Personal Income and Its Disposition[Billions of dollars; seasonally adjusted at annual rates]

Wage and salary disbursements .Commodity-producing industries .

ManufacturingOther. .

Distributive industriesService industriesGovernment and government enterprises

Other labor income

Proprietors' incomeFarmNonfarm

Rental income of persons . Personal dividend income .Personal interest income

Transfer payments ... . . . . . .

Less' Personal contributions for social insurance .

Personal income

Less' Personal tax and nontax payments.Impact of the Tax Reform Act of 1986 *Other

Equals: Disposable personal income. ..

Less' Personal outlays

Equals' Personal saving

Addenda: Special factors in personal income 2

In wages and salaries:Federal Government and Postal Service pay adjustments

In farm proprietors' income:Agricultural subsidy payments

In rental income of persons:Uninsured losses due to hurricane and earthquake

In transfer payments:Social security retroactive paymentsCost-of-living increases in Federal transfer payments

In personal contributions for social insurance:Social security rate and base changes and increase in premium for

supplementary medical insurance

Level

1989:IV

2,704.0750.4559.9190.5631.2835.3487.1

255.3

350.938.8

312.0

5.1115.7679.5

649.0

218.5

4,540.9

665.0

3,875.9

3,652.2

223.7


1989

I

55.611.98.23.7

11.321.710.6

4.8

31.027.04.0

-4.33.0

30.4

22.6

10.4

132.6

30.518.811.7

102.1

59.8

423

4.4

-1.7

1.211.8

6.1

II

48.17.13.63.5

12.022.46.6

4.7

-3.8-7.7

3.9

-2.02.0

26.1

10.4

3.0

82.5

24.39.6

14.7

58.2

63.2

-5.0

.3

-4.1

.1

in

45.98.95.83.18.6

21.66.7

4.7

-12.2-15.2

3.0

-4.41.8

12.7

9.6

2.4

55.6

-3.5-16.1

12.6

59.1

64.7

-5.6

.2

-8.2

-3.1

-.5

IV

49.37.84.23.6

11.822.96.9

4.6

7.62.74.8

-.32.5

11.7

12.6

3.1

85.0

15.9.3

15.6

69.1

40.5

28.6

6.0

-3.0

.5

1. Estimates of the impact of the Tax Reform Act of 1986 on Federal Government personal tax payments and indirect effects on State andlocal government personal tax payments.

2. The impact of the Loma Prieta Earthquake on several components of personal income is discussed near the beginning of the "BusinessSituation."

1986 1987 1988 1989Based on Seasonally Adjusted Annual Rates

NoteChanges are from preceding quarter.U.S. Department of Commerce, Bureau of Economic Analysis 90-1-4

NOTE.Most dollar levels are found in table 2.1 of the "Selected NIPA Tables."



ter, compared with a 6^2-percent in-crease in the third. Real DPI increased2J/2 percent, following a 4^2-percentincrease; the fourth-quarter decelera-tion reflected the acceleration in PCEprices.

Personal outlayslargely PCEwere up substantially less than DPI inthe fourth quarter. As a result, per-

sonal saving jumped after two quar-ters of decline. The personal savingrate rose 0.7 percentage point to 5.8percent, the highest level in the last4 years. In the past, large changesin consumer purchases of motor vehi-cles have been associated with changesin the opposite direction in the sav-ing rate. These purchases (indeed,

durable goods purchases in general)may be viewed as an alternative kindof savingan accumulation of physicalcapital as opposed to financial capital.In the current expansion, 10 of the 12largest changes in PCE for motor ve-hicles and parts were associated withchanges in the opposite direction in thesaving rate.


10 SURVEY OF CURRENT BUSINESS

National Income and Product Accounts TablesSelected NIPA Tables

January 1990

New estimates in this issue: Fourth quarter 1989.The selected set of 54 national income and product accounts (NIPA) tables shown in this section presents quarterly estimates, which are updated

monthly. (In most of these tables, annual estimates are also shown.) The full set of 132 tables usually shown in July presents annual NIPArevisions. For more information on the presentation of the estimates, see "National Income and Product Accounts Estimates: When They areReleased, Where They Are Available, and How They Are Presented" in the July 1988 SURVEY.

The full set of estimates for 1986-88 is in the July 1989 issue of the SURVEY; estimates for 1985 are in the July 1988 issue; estimates for1984 are in the July 1987 issue; estimates for 1983 are in the July 1986 issue. Estimates for 1929-82 are in National Income and ProductAccounts, 1929-82: Statistical Tables (GPO Stock No. 003-010-00174-7, price $23.00). These publications are available from the Superintendentof Documents; see address on inside front cover.

The full set of NIPA tables is available on diskette for $200 per year (12 updates, for the quarterly estimates prepared each month). For moreinformation, write to the Bureau of Economic Analysis (BE-54), U.S. Department of Commerce, Washington, DC 20230.

Table 1.1.Gross National Product[Billions of dollars]

Table 1.2.Gross National Product in Constant Dollars[Billions of 1982 dollars]

Gross national product

Personal consumption expenditures '...

Durable goodsNondurable goodsServices *

Gross private domestic investment

Fixed investmentNonresidential ..

Structures . .Producers' durable equipment

ResidentialChange in business inventories

NonfarmFarm

Net exports of goods and services 'Exports *Imports '

Government purchases of goods andservices

FederalNational defenseNondefense

State and local

1988

4,880.6

3,235.1455.2

1,052.31,727.6

750.3719.6487.2140.3346.8232.430.634.2-3.6

-73.7547.7621.3

968.9

381.3298.0

83.3587.6

1989

5,233.2

3,470.3

473.61,122.61,874.1

777.1747.7512.5145.1367.4235.2

29.425.24.2

-50.9624.4675.2

1,036.7

404.1302.8101.3632.5

Seasonally adjusted at annual rates1988

m

4,926.93,263.4

452.51,066.21,744.7

771.1726.5493.2142.0351.3233.2

44.641.53.1

-66.2556.8623.0

958.6367.5296.1

71.4591.0

rv

5,017.33,324.0

467.41,078.41,778.2

752.8734.1495.8142.5353.3238.4

18.740.8

-22.2-70.8579.7650.5

1,011.4

406.4300.5105.9604.9

1989

I

5,113.13,381.4

466.41,098.31,816.7

769.6

742.0503.1144.7358.5238.8

27.719.18.6

-54.0605.6659.6

1,016.0

399.0298.7100.4617.0

II

5,201.73,444.1

471.01,121.51,851.7

775.0747.6512.5142.4370.1235.1

27.423.63.8

-50.6626.1676.6

1,033.2

406.0301.3104.7627.2

in

5,281.0

3,508.1

486.11,131.41,890.6

779.1751.7519.6146.2373.4232.1

27.419.87.5

-45.1628.5673.6

1,038.9

402.7307.8

94.9636.2

IV

5,337.0

3,547.5471.0

1,139.11,937.5

784.8

749.6514.8147.1367.7234.8

35.238.3-3.1

-53.8637.3691.1

1,058.6408.8303.4105.4649.8

1. See the box on page 21 of the July 89 SURVEY OF CURRENT BUSINESS.NOTE.Percent changes from preceding period for selected items in this table are shown in table 8.1.

Table 1.3.Gross National Product by Major Type of Product[Billions of dollars]


Final salesChange in business inventories

Goods


Durable goods-Final salesChange in business inventories

Nondurable goodsFinal salesChange in business inventories

ServicesStructures

1988

4,880.64,850.0

30.61,931.9

1,901.330.6

863.7838.6

25.01,068.31,062.6

5.62,499.2

449.5

1989

5,233.25,203.8

29.42,073.5

2,044.129.4

911.6897.1

14.51,161.91,147.0

14.92,700.7

459.0


m

4,926.94,882.3

44.61,955.81,911.2

44.6884.0842.6

41.41,071.81,068.6

3.22,520.3

450.8

IV

5,017.34,998.7

18.71,987.4

1,968.718.7

888.5856.5

32.01,098.91,112.2-13.3

2,570.0459.9

1989

I

5,113.15,085.4

27.72,030.92,003.2

27.7894.7872.8

22.01,136.21,130.5

5.72,620.8

461.3

II

5,201.75,174.3

27.42,079.1

2,051.727.4

905.2899.2

6.01,173.91,152.5

21.4

2,667.5455.1

ffl

5,281.05,253.6

27.42,096.3

2,068,927.4

930.1924.9

5.21,166.21,144.0

22.2

2,728.1

456.6

IV

5^37.05,301.8

35.22,087.9

2,052.735.2

916.5891.525.0

1,171.31,161.2

10.22,786.2

462.9


Personal consumption expenditures l...

Durable goods . . .Nondurable goodsServices *

Gross private domestic investment

Fixed investmentNonresidential

StructuresProducers' durable equipment

ResidentialChange in business inventories ,

NonfarmFarm

Net exports of goods and services '

Exports 'Imports *


FederalNational defense .Nondefense

State and local

1988

4,024.4

2,598.4

413.6904.5

1,280.2

715.8687.9493.8122.2371.6194.127.930.7-2.8

-74.9530.1605.0

785.1328.9261.5

67.4456.2

1989

4,142.6

2,668.5

425.6915.7

1,327.2

724.5

700.0511.1120.1391.0188.924.521.03.5

-56.3587.6643.9

805.8337.2256.2

81.0468.6


ra

4,042.7

2,608.1

410.7910.3

1,287.0

733.6

696.1501.0123.0378.0195.137.537.2

.3-74.9531.9606.9

775.9319.8258.861.0

456.1

IV

4,069.4

2,627.7

420.5912.0

1,295.2709.1690.8492.7121.4371.3198.1

18.331.9

-13.6-73.8551.4625.2

806.4

343.9261.6

82.3462.5

1989

I

4,106.8

2,641.0

419.3915.0

1,306.7

721.1696.6501.0121.1379.9195.624.516.97.6

-55.0569.7624.6

799.7

335.5254.4

81.1464.2

II

4,132.52,653.7

424.9909.7

1,319.0

719.8700.7511.4118.1393.2189.319.119.5-.5

-51.2587.5638.7

810.3343.6255.8

87.8466.7

in

4,162.9

2,690.1

436.4920.8

1,332.9724.6

702.7517.9120.4397.6184.821.916.25.6

-57.1593.1650.2

805.3336.1260.1

76.0469.2

IV

4,168.1

2,689.3

421.6917.5

1,350.3732.7

700.1514.0120.8393.3186.0

32.631.3

1.3-61.8600.2662.0

807.9333.6254.7

79.0474.2

1. See the box on page 21 of the July 89 SURVEY OF CURRENT BUSINESS.NOTE.Percent changes from preceding period for selected items in this table are shown in table 8.1.

Table 1.4.Gross National Product by Major Type of Product in ConstantDollars

[Billions of 1982 dollars]



Goods


Durable goodsFinal salesChange in business inventories

Nondurable goods .Final salesChange in business inventories

Services

Structures

1988

4,024.4

3,996.527.9

1,771.6

1,743.727.9

883.6860.9

22.7888.0882.8

5.21,873.5

379.3

1989

4,142.6

4,118.124.5

1,837.6

1,813.124.5

915.3903.2

12.0922.4909.9

12.51,934.0

371.0


m

4,042.7

4,005.237.5

1,782.3

1,744.837.5

900.8863.4

37.3881.5881.4

.11,880.8

379.6

IV

4,069.4

4,051.018.3

1,789.4

1,771.018.3

900.5872.4

28.1888.9898.6-9.7

1,896.7

383.3

1989

I

4,106.8

4,082.324.5

1,823.2

1,798.724.5

902.3884.2

18.1920.9914.5

6.41,905.1

378.5

II

4,132.5

4,113.519.1

1,843.9

1,824.819.1

913.0908.0

5.0930.9916.8

14.11,919.9

368.8

m

4,162.94,141.0

21.91,851.31,829.4

2L9931.3927.2

4.2920.0902.3

17.71,945.0

366.6

IV

4,168.1

4,135.532.6

1,832.2

1,799.532.6

914.6893.6

20.9917.6905.9

11.71,965.9

370.0

NOTE.Percent changes from preceding period for selected items in this table are shown in table 8.1. NOTE.Percent changes from preceding period for selected items in this table are shown in table 8.1.


January 1990 SURVEY OF CURRENT BUSINESS 11

Table 1.5.Relation of Gross National Product, Gross Domestic Purchases,and Final Sales to Domestic Purchasers

[Billions of dollars]

Gross national productLess: Exports of goods and servicesPlus: Imports of goods and servicesEquals: Gross domestic purchases 2

Less: Change in business inventoriesEquals: Final sales to domestic

purchasers 3

1988

4,880.6547.7621.3

4,954.330.6

4,923.7

1989

5,233.2624.4675.2

5,284.129.4

5,254.7


III

4,926.9556.8623.0

4,993.144.6

4,948.5

rv

5,017.3579.7650.5

5,088.118.7

5,069.5

1989

I

5,113.1605.6659.6

5,167.127.7

5,139.4

II

5,201.7626.1676.6

5,252.327.4

5,224.9

m

5,281.0628.5673.6

5,326.127.4

5,298.7

IV

5,337.0637.3691.1

5,390.935.2

5,355.7

1. See the box on page 21 of the July 89 SURVEY OF CURRENT BUSINESS.2. Purchases in the United States of goods and services wherever produced.3. Final sales in the United States of goods and services wherever produced.NOTE.Percent changes from preceding period for selected items in this table are shown in table 8.1.

Table 1.7.Gross National Product by Sector[Billions of dollars]

Gross national productGross domestic product

BusinessNonfarm . ,,

Nonfarm less housingHousing

FarmStatistical discrepancy

Households and institutions

Nonprofit institutionsGovernment

FederalState and local

Rest of the worldAddendum:

Gross domestic business product lessg

1988

4,880.64,847.34,153.54,087.13,685.6

401.576.1-9.6

188.09.4

178.7505.8159.3346.533.3

37443

1989

5,233.25,199.64,448.44,386.13,954.3

431.885.6

-23.4210.6

9.6201.0540.7169.6371.033.6


m

4,926.94,894.74,194.74,119.63,714.7

404.983.7-8.6

190.89.4

181.4509.2159.8349.432.3

IV

5,017.34,982.94,271.14,225.53,813.5

412.062.3

-16.6195.5

9.5186.0516.3160.8355.534.5

1989

I

5,113.15,078.54,347.24,280.03,862.7

417.291.3

-24.1201.2

9.5191.7530.1168.3361.834.5

II

5,201.75,170.84,426.74,356.03,932.5

423.589.0

-18.3207.1

9.6197.5536.9169.1367.931.0

m

5,281.05,247.44,489.04,431.33,992.9

438.583.2

-25.5214.4

9.7204.7544.0170.1373.933.5

IV

5,337.05,301.84,530.54,477.04,028.9

448.279.1

-25.5219.7

9.7210.0551.6171.1380.535.2

Table 1.6.Relation of Gross National Product, Gross Domestic Purchases,and Final Sales to Domestic Purchasers in Constant Dollars


Gross national productLess: Exports of goods and servicesPlus: Imports of goods and servicesEquals: Gross domestic purchases 2

Less: Change in business inventoriesEquals: Final sales to domestic

purchasers 3.

1988

4,024.4530.1605.0

4,099.327.9

4,071.4

1989

4,142.6587.6643.9

4,198.924.5

4,174.4


m

4,042.7531.9606.9

4,117.637.5

4,080.1

IV

4,069.4551.4625.2

4,143.218.3

4,124.9

1989

I

4,106.8569.7624.6

4,161.824.5

4,137.3

II

4,132.5587.5638.7

4,183.719.1

4,164.7

in

4,162.9593.1650.2

4,220.021.9

4,198.2

IV

4,168.1600.2662.0

4,229.932.6

4,197.3

1. See the box on page 21 of the July 89 SURVEY OF CURRENT BUSINESS.2. Purchases in the United States of goods and services wherever produced.3. Final sales in the United States of goods and services wherever produced.NOTE.Percent changes from preceding period for selected items in this table are shown in table 8.1.

Table 1.8.Gross National Product by Sector in Constant Dollars[Billions of 1982 dollars]

Gross national productGross domestic product

BusinessNonfarm

Nonfarm less housingHousing

FarmStatistical discrepancy

Households and institutionsPrivate householdsNonprofit institutions

GovernmentFederalState and local

Rest of the worldAddendum:

Gross domestic business product lesshousing

1988

4,024.43,996.33,482.93,418.23,127.9

290.372.7-8.0

137.38.8

128.4376.1125.2250.928.1

3,183.7

1989

4,142.64,115.43,587.03,528.13,231.8

296.377.7

-18.8146.3

9.0137.4382.1126.9255.227.2


HI

4,042.74,015.63,499.73,435.53,144.3

291.271.4-7.2

139.08.9

130.2376.8125.3251.527.1

IV

4,069.44,040.83,521.73,474.23,181.7

292.561.2

-13.7140.5

8.9131.6378.6126.0252.728.5

1989

I

4,106.84,078.53,555.73,494.53,200.8

293.880.8

-19.7142.7

8.9133.8380.1126.4253.728.3

II

4,132.54,107.33,580.73,518.63,223.1

295.576.9

-14.8145.4

8.9136.5381.2126.5254.725.2

in

4,162.94,135.93,605.13,549.73,252.6

297.176.0

-20.5148.0

9.0139.0382.7127.0255.727.0

IV

4,168.14,140.13,606.43,549.73,250.9

298.877.1

-20.3149.1

9.0140.1384.5127.6256.928.0

NOTE.Percent changes from preceding period for selected items in this table are shown in table 8.1. NOTE.Percent changes from preceding period for selected items in this table are shown in table 8.1.



Table 1.9.Relation of Gross National Product, Net National Product, NationalIncome, and Personal Income

[Billions of dollars]

Table 1.14.National Income by Type of Income[Billions of dollars]

Gross national productLess: Capital consumption allowances

with capital consumption adjustment..Capital consumption

allowances without capitalconsumption adjustment

Less: Capital consumptionadjustment

Equals: Net national productLess: Indirect business tax and nontax

liabilityBusiness transfer paymentsStatistical discrepancy

Plus: Subsidies less current surplus ofgovernment enterprises

Equals: National incomeLess: Corporate profits with inventory

valuation and capital consumption

Net interestContributions for social

insuranceWage accruals less

disbursementsPlus: Government transfer payments to

persons ...Personal interest incomePersonal dividend incomeBusiness transfer payments

Equals: Personal income

1988

4,880.6

513.6

526.4

12.84,367.1

393.529.0-9.6

18.53,972.6

328.6392.9

444.6

0

555.7571.1102.229.0

4,064.5

1989

5,233.2

552.2

539.1

-13.14,681.0

416.731.8

-23.4

9.14,265.0

298.2461.1

479.3

0

600.3657.8112.431.8

4,428.7


m

4,926.9

515.2

528.9

13.64,411.7

397.029.4-8.6

11.84,005.7

330.9396.4

448.2

0

558.0576.3103.629.4

4,097.6

rv

5,017.3

524.1

531.3

7.14,493.2

402.730.1

-16.6

20.44,097.4

340.2415.7

455.2

0

563.7598.6106.430.1

4,185.2

1989

I

5,113.1

533.0

532.7

-.34^80.1

407.730.8

-24.1

19.54,185.2

316.3436.1

469.7

0

5856629.0109.430.8

4,317.8

II

5,201.7

541.0

533.6

-7.34,660.8

413.431.5

-18.3

15.54,249.6

307.8458.4

476.4

o

595.3655.1111.431.5

4,400.3

in

5,281.0

565.2

544.8

-20.54,715.7

421.532.2

-25.5

-.34,287.3

295.2471.5

482.0

0

604.2667.8113.232.2

4,455.9

IV

5^37.0

569.6

545.4

-24.24,767.4

424.232.9

1.8

478"4

489.2

o

616.1679.5115.732.9

4^40.9

Table 1.10.Relation of Gross National Product, Net National Product, andNational Income in Constant Dollars


Gross national productLess: Capital consumption allowances

with capital consumption adjustment ..Equals: Net national productLess: Indirect business tax and nontax

liability plus business transferpayments less subsidies plus currentsurplus of government enterprises

Statistical discrepancyEquals: National income

4,024.4

480.23,544.2

327.8-8.0

3,224.5

4,142.6

508.43,634.2

333.5-18.8

3319.6

4,042.7

482.73,559.9

329.2-7.2

3,237.9

4,069.4

488.13,581.2

331.2-13.7

3,263.7

4,106.8

493.53,613.3

331.3-19.7

3301.6

4,132.5

498.93,633.6

331.8-14.8

3316.6

4,162.9

518.63,644.3

335.5-20.5

3329.3

4,168.1

522.53,645.6

335.2

Table 1.11.Command-Basis Gross National Product in Constant Dollars[Billions of 1982 dollars]

Gross national productLess: Net exports of goods and

servicesExports

Equals: Gross domestic purchasesPlus: Command-basis net exports of

goods and services .Command-basis exports '

Equals: Command-basis grossnational product

Addendum:Terms of trade 2

4,024.4

-74953016050

4,099.3

-717533.3605.0

4,027.5

1006

4,142.6

-563587.66439

4,198.9

-485595.4643.9

4,150.4

101 3

4,042.7

-749531.96069

4,117.6

-645542.4606.9

4,053.1

1019

4,0694

-73855146252

4,143.2

-680557.2625.2

4,075.2

101 1

4,106.8

-550569.76246

4,161.8

-51 1573.5624.6

4,110.7

1007

4,132 5

-51 258756387

4,183.7

^77590.9638.7

4,136.0

1007

4,162.9

-57 159316502

4,220.0

-436606.6650.2

4,176.5

1023

4,168 1

-61 860026620

4,229.9

-516610.4662.0

4,178.4

1017

National incomeCompensation of employees ,

Wages and salariesGovernment and government

enterprises ...Other

Supplements to wages and salariesEmployer contributions for social

insuranceOther labor income

Proprietors' income with inventoryvaluation and capital consumptionadjustments ,

Proprietors' income withinventory valuation adjustment....

Capital consumption adjustmentNonfarm ,

Proprietors' incomeInventory valuation adjustmentCapital consumption adjustment

Rental income of persons withcapital consumption adjustmentRental income of personsCapital consumption adjustment

Corporate profits with inventoryvaluation and capital consumptionadjustmentsCorporate profits with inventory

valuation adjustment * ,Profits before tax

Profits tax liabilityProfits after tax

DividendsUndistributed profits

Inventory valuation adjustmentCapital consumption adjustment

Net interestAddenda:

Corporate profits after tax withinventory valuation and capitalconsumption adjustmentsNet cash flow with inventory

valuation and capitalconsumption adjustmentsUndistributed profits with

inventory valuation andcapital consumptionadjustments

Capital consumption allowanceswith capital consumptionadjustment

Less: Inventory valuationadjustment

Equals: Net cash flow

1988

3,972.62,907.62,429.0

446.51,982.5

478.6

249.7228.9

327.839.8

47.3-7.5

288.0259.2-1.530.3

15.765.4

-49.8

328.6

281.8306.8137.9168.9110.458.5

-25.046.8

392.9

190.7

402.0

80.3

321.7

-25.0427.0

1989

4,265.03,145.42,632.0

476.92,155.1

513.4

265.1248.3

352.246.3

53.5-7.2

305.9280.4-1.326.8

8.062.9

-54.9

298.2

268.7287.3129.0158.2122.136.2

-18.529.4

461.1

169.2

391.9

47.1

344.8

-18.5410.4


HI

4,005.72,935.12,452.2

449.62,002.6

482.9

251.8231.1

327.037.7

45.0-7.4

289.3260.4-1.630.5

16.365.8

-49.6

330.9

284.1314.4141.2173.2112.261.1

-30.446.9

396.4

189.7

400.7

77.6

323.1

-30.4431.1

IV

4,097.42,997.22,505.1

456.32,048.9

492.0

255.6236.5

328.332.0

39.2-7.2

296.3267.8-1.329.8

16.166.1

-49.9

340.2

298.7318.8143.2175.6115.260.4

-20.141.5

415.7

196.9

411.5

81.7

329.7

-20.1431.6

1989

I

4,185.23,061.72,560.7

466.92,093.8

501.0

259.7241.3

359.359.0

66.2-7.2

300.3274.4-2.528.5

11.862.9

-51.1

316.3

279.7318.0144.4173.6118.555.1

-38.336.6

436.1

171.9

388.6

53.4

335.2

-38.3426.9

II

4,249.63,118.22,608.8

473.52,135.3

509.4

263.4246.0

355.551.3

58.4-7.1

304.2278.7-1.927.4

9.862.5

-52.7

307.8

275.5296.0134.9161.1120.940.2

-20.532.3

458.4

172.9

391.7

52.0

339.7

-20.5412.2

in

4,28733,171.92,654.7

480.22,174.5

517.2

266.6250.7

343.336.1

43.5-7.5

307.2281.0

026.2

5.463.8

-58.4

295.2

268.7275.0122.6152.4123.329.1-6.326.5

471.5

172.6

399.3

49.3

349.9

-6.3405.6

IV

3,230.12,704.0

487.12,216.9

526.1

270.7255.3

350.938.8

45.9-7.0

312.0287.5

-.725.2

5.162.3

-57.2

125.6

-8.922.4

478.4

354.5

-8.9

1. Exports of goods and services deflated by the implicit price deflator for imports of goods and services.2. Ratio of the implicit price deflator for exports of goods and services to the implicit price deflator for

imports of goods and services with the decimal point shifted two places to the right.NOTE.Percent changes from preceding period for selected items in this table are shown in table 8.1.


January 1990 SURVEY OF CURRENT BUSINESS 13

Table 1.16.Gross Domestic Product of Corporate Business in Current Dollarsand Gross Domestic Product of Nonfinancial Corporate Business in Currentand Constant Dollars

Table 1.17.Auto Output[Billions of dollars]

Gross domestic product ofcorporate business

Capital consumption allowances withcapital consumption adjustment...

Net domestic productIndirect business tax and nontax

liability plus business transferpayments less subsidies ,

Domestic income .Compensation of employees

Wages and salaries ,Supplements to wages and

salaries ,Corporate profits with inventory

valuation and capitalconsumption adjustmentsProfits before tax

Profits tax liabilityProfits after tax ,


Inventory valuation adjustment....Capital consumption adjustment..

Net interestGross domestic product of

financial corporate business..Gross domestic product of

nonfinancial corporatebusiness

Capital consumption allowances withcapital consumption adjustment


liability plus business transferpayments less subsidies

Domestic incomeCompensation of employees

Wages and salariesSupplements to wages and

salariesCorporate profits with inventory

valuation and capitalconsumption adjustmentsProfits before tax

Profits tax liabilityProfits after tax


Inventory valuation adjustment....Capital consumption adjustment..

Net interest

Gross domestic product ofnonfinancial corporatebusiness

Capital consumption allowances withcapital consumption adjustment....


liability plus business transferpayments less subsidies

Domestic income

1988

2,955.0

321.72,633.3

278.62,354.71,951.21,640.5

310.7

285.0263.2137.9125.384.241.1

-25.046.8

118.6

223.7

2,731.3

297.12,434.2

260.02,174.21,799.11,511.2

287.9

249.3233.4105.4128.083.045.0

-25.040.9

125.8

1989


m IV

1989I II

Billions of dollars

3,140.5

344.82,795.7

295.72,500.02,105.21,776.6

328.7

252.4241.4129.0112.499.113.3

-18.529.4

142.4

237.0

2,903.5

317.12,586.4

276.02,310.41,938.81,634.6

304.2

222.9217.197.4

119.796.023.7

-18.524.3

148.7

2,982.8

323.12,659.6

281.92,377.81,969.51,656.0

313.5

285.9269.3141.2128.195.932.3

-30.446.9

122.4

227.9

2,754.9

298.12,456.8

263.22,193.61,816.81,526.2

290.6

248.3237.7107.4130.392.637.7

-30.441.0

128.5

3,048.6

329.72,718.9

284.82,434.02,012.01,691.9

320.0

293.7272.3143.2129.187.241.9

-20.141.5

128.4

232.2

2,816.4

303.62,512.8

265.92,246.91,854.61,558.1

296.5

258.2242.2109.4132.886.446.5

-20.136.1

134.0

3,078.6

335.22,743.4

288.52,454.92,050.61,730.2

320.4

269.7271.5144.4127.1102.025.0

-38.336.6

134.5

235.8

2,842.7

308.42,534.4

269.32,265.01,889.31,592.5

296.7

235.3242.2110.6131.698.333.3

-38.331.5

140.4

3,126.1

339.72,786.4

293.12,493.32,087.71,761.6

326.1

264.2252.4134.9117.496.820.6

-20.532.3

141.4

238.9

2,887.2

312.22,575.0

273.72,301.31,923.11,621.2

301.9

230.5223.8100.6123.193.729.4

-20.527.3

147.6

m

3,168.5

349.92,818.6

300.22,518.42,122.31,791.2

331.2

249.5229.3122.6106.699.07.6

-6.326.5

146.5

232.3

2,936;2

321.92,614.3

280.32,334.01,954.31,647.8

306.5

226.7211.594.7

116.896.020.8-6.321.5

152.9

IV

354.5

300.8

2,160.21,823.3

336.9

98J

-8"922.4

147.3

326.0

280.8

"ljm.51,676.9

311.6

95.9..._

16.8153.7


2,419.5

279.32,140.2

209.21,931.0

2,478.2

292.82,185.4

212.91,972.6

2,434.1

280.62,153.6

210.11,943.5

2,453.2

283.22,170.0

211.91,958.1

2,459.1

285.92,173.2

211.31,961.9

2,471.3

288.82,182.5

211.81,970.8

2,497.2

296.72,200.4

214.41,986.0

299.9

213.9

Auto outputFinal sales

Personal consumption expendituresNew autos .Net purchases of used autos

Producers' durable equipmentNew autosNet purchases of used autos

Net exports of goods and servicesExportsImports


Change in business inventories ofnew and used autosNewUsed

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

1988

129.9128.8144.2101.243.021.451.3

-29.9-38.4

8.747.1

1.6

1.1.5.6

101.660.8

1989

132.2130.5143.5100.343.220.750.7

-30.0-35.3

9.444.7

1.6

1.72.0-.2

104.158.8


m

136.61253140.998.842.120.252.5

-32.3-37.1

9.546.7

1.4

11.37.73.7

105.960.2

IV

132.0130.1146.6102.444.221.252.3

-31.1-39.3

9.248.5

1.5

1.91.5.4

107.658.5

1989

I

134.5123.9142.799.842.919.047.7

-28.7-39.5

9.749.2

1.7

10.511.1-.5

106.957.2

II

131.7135.4144.5101.143.523.454.7

-31.3-34.4

8.743.1

1.9

-3.7-3.9

.2

107.160.4

m

135.8141.8150.9110.840.223.653.7

-30.1-34.3

9.143.4

1.5

-5.9-7.9

2.0

102.962.6

IV

126.9121.0135.989.546.316.746.6

-29.9-33.1

10.243.4

1.5

5.98.5

-2.6

99.455.1

1. Consists of final sales and change in business inventories of new autos assembled in the United States.2. Consists of personal consumption expenditures, producers' durable equipment, and government

purchases.

Table 1.18.Auto Output in Constant Dollars[Billions of 1982 dollars]

Auto outputFinal sales

Personal consumption expendituresNew autosNet purchases of used autos

Producers' durable equipmentNew autosNet purchases of used autos

Net exports of goods and servicesExportsImports


Change in business inventories ofnew and used autosNewUsed

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

1988

108.9108.6117.084.432.718.342.8

-24.5-28.1

7.135.2

1.4

.4-.1

.5

84.550.7

1989

108.9108.0114.882.032.817.441.4

-24.1-25.6

7.433.0

1.4

.91.2-.3

84.548.1


HI

114.4105.0113.982.231.717.343.7

-26.4-27.4

7.835.2

1.2

9.46.42.9

88.150.1

IV

110.1109.5117.984.633.418.143.2

-25.1-27.9

7.535.4

1.4

.6

.3

.3

88.648.3

1989I

110.9103.2113.881.632.216.239.0

-22.8-28.3

7.836.1

1.4

7.78.2-.5

86.946.7

II

109.3111.5115.482.433.019.544.6

-25.0-25.1

6.932.0

1.6

-2.1-2.2

.1

87.149.2

in

112.0117.9121.791.230.520.044.2

-24.2-25.1

7.132.2

1.3

-5.9-7.4

1.5

83.651.5

IV

103.599.5

108.372.935.413.837.9

-24.2-23.9

7.931.8

1.3

4.06.2

-2.2

80.244.9

1. Consists of final sales and change in business inventories of new autos assembled in the United States.2. Consists of personal consumption expenditures, producers' durable equipment, and government

purchases.


14 SURVEY OF CURRENT BUSINESS January 1990Table 1.19.Truck Output

[Billions of dollars]Table 1.20.Truck Output in Constant Dollars


Truck output 'Final sales

Personal consumption expendituresProducers' durable equipmentNet exports of goods and services

ExportsImports

Government purchases of goods andservices ,

Change in business inventories

1988

66.365.929.236.7-5.6

3.89.5

5.7.4

1989

66.065.230.835.4-6.5

3.510.0

5.6.7


III

63.865.929.136.6-5.3

3.99.2

5.5-2.1

IV

71.267.029.838.9-6.9

3.710.5

5.24.2

1989

I

70.365.530.335.7-6.3

3.910.2

5.84.8

II

68.165.629.836.5-6.3

3.19.4

5.72.6

m

62.969.234.036.2-6.3

3.59.8

5.4-6.4

IV

62.560.628.933.3-7.1

3.510.6

5.41.9

1. Includes new trucks only.

Table 2.1.Personal Income and Its Disposition[Billions of dollars]

Personal income . ..Wage and salary disbursements

Commodity-producing industriesManufacturing ....

Distributive industriesService industriesGovernment and government

enterprisesOther labor incomeProprietors' income with

inventory valuation and capitalconsumption adjustmentsFarm . .Nonfarm

Rental income of persons withcapital consumption adjustment...

Personal dividend incomePersonal interest incomeTransfer payments

Old-age, survivors, disability, andhealth insurance benefits

Government unemploymentinsurance benefits

Veterans benefitsGovernment employees retirement

benefitsOther transfer payments

Aid to families with dependentchildren

OtherLess: Personal contributions for

social insuranceLess: Personal tax and nontax

paymentsEquals: Disposable personal income....Less: Personal outlays

Personal consumption expendituresInterest paid by consumers to

business...Personal transfer payments to

foreigners (net)Equals: Personal saving ,Addenda:

Disposable personal income:Total, billions of 1982 dollarsPer capita:

Current dollars1982 dollars

Population (mid-period, millions)....Personal saving as percentage of

disposable personal income

1988

4,064.52,429.0

696.3524.0571.9714.4

446.5228.9

327.839.8

288.0

15.7102.2571.1584.7

300.5

13.017.0

82.7171.5

17.2154.3

194.9

586.63,477.83,333.13,235.1

96.1

1.9144.7

2,793.2

14,11611,337246.4

4.2

1989

4,428.72,632.0

738.3553.0615.1801.7

476.9248.3

352.246.3

305.9

8.0112.4657.8632.1

325.2

14.317.3

88.5186.9

17.9169.0

214.2

648.73,780.03,573.73,470.3

101.7

1.7206.3

2,906.7

15,19111,681248.8

5.5


HI

4,097.62,452.2

701.6527.2578.0723.0

449.6231.1

327.037.7

289.3

16.3103.6576.3587.4

301.4

12.917.0

82.8173.2

17.3155.9

196.4

585.93,511.73,362.13,263.4

96.7

1.9149.6

2,806.4

14,23511,377246.7

4.3

IV

4,185.22,505.1

714.7538.1587.5746.7

456.3236.5

328.332.0

296.3

16.1106.4598.6593.8

304.0

12.517.0

83.7176.5

17.5159.0

199.6

597.83,587.43,424.03,324.0

98.1

1.9163.4

2,835.9

14,50411,466247.3

4.6

1989

I

4,317.82,560.7

726.6546.3598.8768.4

466.9241.3

359.359.0

300.3

11.8109.4629.0616.4

316.9

13.517.6

86.9181.5

17.6163.9

210.0

628.33,689.53,483.83,381.4

100.1

2.2205.7

2,881.7

14,88411,625247.9

5.6

II

4,400.32,608.8

733.7549.9610.8790.8

473.5246.0

355.551.3

304.2

9.8111.4655.1626.8

322.9

14.117.5

88.1184.2

17.7166.4

213.0

652.63,747.73,547.03,444.1

101.5

1.4200.7

2,887.6

15,08411,622248.5

5.4

in

4,455.92,654.7

742:6555.7619.4812.4

480.2250.7

343.336.1

307.2

5.4113.2667.8636.4

327.9

14.517.3

88.9187.7

18.0169.7

215.4

649.13,806.83,611.73,508.1

102.0

1.6195.1

2,919.2

15,28011,717249.1

5.1

IV

4,540.92,704.0

750.4559.9631.2835.3

487.1255.3

350.938.8

312.0

5.1115.7679.5649.0

333.0

15.016.9

90.1194.1

18.3175.8

218.5

665.03,875.93,652.23,547.5

103.1

1.6223.7

2,938.3

15,51411,761249.8

5.8

NOTE.Percent changes from preceding period for selected items in this table are shown in table 8.1.

Truck output 'Final sales

Personal consumption expendituresProducers' durable equipmentNet exports of goods and services

Exports .Imports


Change in business inventories

1988

55.755.324.630.8-4.7

3.27.9

4.7.3

1989

53.452.925.128.6-5.3

2.88.1

4.5.5


HI

53.855324.530.7-4.5

3.37.7

4.6-1.6

IV

58.354.924.831.6-5.7

3.08.7

4.23.3

1989

I

57.053.324.829.0-5.1

3.28.3

4.7

3.7

II

55.453.524.429.6-5.1

2.57.6

4.61.9

in

51.356.327.829.3-5.2

2.88.0

4.4-5.0

IV

49.848.423.326.5-5.7

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