AUGUST 1961 survey of CURRENT BUSINESS U.S. DEPARTMENT OF COMMERCE OFFICE OF BUSINESS ECONOMICS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
AUGUST 1961
survey of
CURRENTBUSINESS
U.S. DEPARTMENT OF COMMERCEOFFICE OF BUSINESS ECONOMICS
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SURVEY OF CURRENT BUSINESSAUGUST 1961 VOL. 41, NO. 8
ContentsBUSINESS REVIEW PAGE
Summary 1Employment up, unemployment rate unchangedFurther rise inincomeRetail trade shows mixed trends'Rise in constructionactivityDefense buildup
Manufacturing Activity, First Half of 1961 2
NATIONAL PRODUCT AND INCOME RECOVERS IN SECONDQUARTER 5
ARTICLESConsumer Incomes Up in All Regions in 1960 9
Industrial Developments. 10United States Assets and Investments Abroad
Private Capital Outflow at Peak in 1960 20Direct Investments Abroad 20Industry Developments 24Other Private Foreign Investments 25
Manufacturers' Inventory and Sales ExpectationsA Progress Report on a New Survey 27
Sales Anticipations 2&Inventory Anticipations 28Condition of Inventories 29
NEW OR REVISED STATISTICAL SERIESInventory-Sales Ratios of Manufacturing and Trade Firms. . 32
MONTHLY BUSINESS STATISTICSGeneral S1-S24Industry S24-S40Subject Index Inside Back Cover
U.S. Department of CommerceLuther H. Hodges
SecretaryOffice of Business Economics
M. Joseph MedianDirector
Louis J. ParadisoManaging Director
Muvray F. Foss K. Celeste SlolEditor Statistics Editt
Billy Jo DawkinsGraphics
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By the Office of Business Economics
"DLtituauon
B.BUSINESS activity continued to ad-vance in the early part of the summerfollowing the sharp pickup in the springfrom the first quarter low. Whileseasonal movements dominated mostof the broad indicators, most Julymeasures, after seasonal adjustments,were above June and higher than thesecond quarter averages. Personal in-come and employment increased andfurther gains were made in industrialproduction and construction activity.Price stability continued to charac-terize the major markets.
GNP ct New High in Current Dollars
Biiiion $550
500
450
400
GROSS NATIONAL PRODUCT
1960 Dollars
Current Dollars
1957 1958 1959 1960 1961 1962Quarterly Totals, Seasonally Adjusted, at Artnuai Rates
All Major Components of Domestic DemandIncrease in Second Quarter
I r i ! IChange From 1st to 2nd Quarter 1961
GNPTotal
InventoryChange
Government
'/////[ Fixed Investment
Net Exports
-5 0 5 10Billion $
Seasonally Adjusted, at Annual Rates
15
U. S. Department of Commerce, Office of Business Economics 61-8-1
July increases in employment, andincome from production, after allowingfor the usual summer lull, were gen-erally somewhat smaller than had oc-curred in the spring months. Such adevelopment should not be consideredunusual in view of the sizable advancesduring the second quarter.
The recovery, at the present time,extends over a broad range of demandcategories; however, the rates of in-crease vary considerably. In somecases the forces making for large con-tributions to the business revival, suchas the switch from inventory cuttingto accumulation and the pickup inautomobile demand from the low firstquarter rate, have lessened in theirintensity. On the basis of the surveydescribed later in this issue, it appearsthat manufacturers are planning anincrease in their inventories in thecurrent quarter. Other factors nowdiscernible, which are contributing sig-nificantly to rising output and income,include the stepped-up rate of govern-ment spending, the increase in resi-dential building activity, and a firmingin business plant and equipmentspending.Employment up, unemployment rate
unchanged
Employment in nonfarni establish-ments declined by less than the usualamount in July. Seasonally adjustednonfarni employment of 53.4 millionin July represented the fourth succes-sive month of increase and matchedthe year-ago rate for the first monththis year. Average factory hoursworked per week also increased a littleafter adjustment. The number ofpersons out of work declined, but byno more than is usual, so that the rateof unemployment continued unchangedat close to 7 percent of the civilianlabor force for the eighth month in arow.
The major industries showed eitherno change or small increases in em-ployment in July, and the rise in thenonfarm total was not quite so largeas the average monthly increase in thesecond quarter. This was particularlytrue of manufacturing where durablegoods extended the employment gainwhile nondurables evidenced a levelingout. Seasonally adjusted hours of workadvanced in hard goods industries, butwere off in nondurables.Further rise in income
Personal income in July, includinga special life insurance dividend pay-ment to veterans, totaled $422 billionat an annual rate, an increase of $4)billion from the June rate. Of thisrise, about $2 billion came from higherpayrolls, particularly in commodity-producing and service industries. Al-most all of the remaining increase wasattributable to the special dividendpayment; changes in other types ofincome were generally small.
Personal income, excluding the vet-erans' dividend, at $419 billion wasabout $15 billion above a year ago and$6 billion above the second quarteraverage. It may be recalled that asimilar payment in March caused anunusual spurt in March personal in-come, but its disappearance in thefollowing month was more than offsetby rising payrolls and other earnings.Retail trade shows mixed trends
Consumer buying of goods has con-tinued to lag relative to the flow ofincome. Retail store sales, after sea-sonal adjustment, were off a little inJuly, and about the same as a year ago.The rate for the month was about thesame as the second quarter monthlyaverage, in contrast to the previouslynoted increase in personal income.
Changes by kinds of business werequite mixed. Department store salesDigitized for FRASER
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SURVEY OF CURRENT BUSINESS August 1961
rose by about 2 percent over June andabout the same percentage over a yearago, while sales of other nondurablesstores eased somewhat from the Junerate. Sales at automobile dealers wereoff as consumer purchasing of new carsdropped from earlier highs, but sales ofother durable goods improved in July.Rise in construction activity
Total construction outlays, seasonallyadjusted, rose again in July to an annualrate of almost $59 billion, exceeding theprevious high that had been reached inthe middle of 1959. The increases re-flected a continuation of the expansionin private residential activity and apickup in public expenditures. Privateexpenditures other than residential werelittle changed over the month. Withthe latest increases the third quarterthus begins with total expendituressome $2)4 billion higher, at a seasonallyMANUFACTURING PRODUCTION
Recovery Is Widespread, Featuredby Sharp Advances for Most Groups
Percent Change From1st Qtr. 1960 to Jan.-Feb. 1961 Avg.Jan.-Feb. 1961 Avg. & To June 1961
-30 -20 -10 0 10 20 30
Textile, Apparel, andLeather Products
adjusted annual rate, than they aver-aged in the second quarter of this year.
Defense buildupCongressional action earh^ in August
on the President's request for addedfunds to strengthen the Nation's de-fenses will result in a further step-upin defense outlays in the near future.In the fiscal year just ended, expendi-tures for national defense purposestotaled $46.8 billion (GNP basis) andincreased to an annual rate of $48.8billion in the April-June quarter of1961. The new requests would ma-
terially augment the increases projectedearlier in the year.
A large part of the additional defensemoney is scheduled for procurement ofnew weapons and equipment, many ofwhich have relatively short lead times.The remainder would be allotted foradditional personnel, operating andmaintenance outlays, and civil defense.As pointed out in the subsequent dis-cussion on manufacturing activity, de-fense orders had already been expandedduring the first 6 months of 1961 as aresult of the speedup in defense pro-curement earlier this year.
Manufacturing Activity, First Half of 1961
Data: Based on FRB's Seasonally Adjusted IndexU. S. Department of Commerce, Office of Business Economic* 6I~8~2
JC1 ACTORY operations have turnedaround briskly from the winter lows.Shipments and new orders received inJune were 8 percent and 9 percent,respectively, above January, after sea-sonal adjustment, and compared favor-ably with year-earlier rates.
Increases in shipments and newbusiness received have been pervasivethroughout the major industries, andhave extended to both defense and non-defense goods. With new orders some-what larger than sales, particularly inthe durable goods industries, the back-log of unfilled orders on producers'books lias shown some rise in theopening 6 months of 1961, although atthe end of June outstanding contractswere some 4 percent lower than inmid-1960.
Improved demand has been reflectedin inventory programs: factory stockswere unchanged in the March-Juneperiod, seasonally adjusted, in contrastto a running down of $1.8 billion duringthe previous 9 months. The cessationof this inventory drag on output has inturn been a major factor in the rise inmanufacturers' sales and new ordersreceipts.
Factors in recovery
The recently increased market formanufactured goods stems from en-larged requirements by rruost majorsections of demand. Among these are
the substantial rise in residential hous-ing activity, and higher governmentprograms for highways, military con-struction, and a broad range of defenseprocurement items; also contributingwas a moderate rise in consumer goodsdemand in the second quarter.
The most dynamic source of demandstems from the rapidly expanding mili-tary expenditure programs. As can beseen in table 2 contracts placed in thefirst 5 months of 1961 by the Depart-ment of Defense for procurement items,research and construction were 1.1 per-cent higher than in the correspondingperiod of 1960. Fiscal year 1961 obli-gations were lower than earlier pro-gramed and the shortfall will flow overinto the current fiscal year.
Nondurables set new highsShipments of nondurable goods were
only moderately affected by the 1960-61 recessionary forces, and soft goodsshipments soon reached new highs inthis year's recovery. Stocks of non-durables have kept pace with salesrequirements. In contrast, as can beseen in the chart, durable goods salesand stocks in June, seasonally adjusted,were still some 6 percent below their1960 highs.
The largest sales gain among the non-durable groups in 1961 was achieved bythe textile industry, followed by paper,chemicals, and rubber. Food and bev-Digitized for FRASER
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August 19G1 SURVEY OF CURRENT BUSINESS
Table I.Manufacturers' Sales and New Orders, 1960-61
AH manufacturingDurable goods
Pi'iniury inotnlsFabricated metalsElectrical machineryNonelectrical machineryTransportation equipment
Nondurable goodsFood and beverage __TextilesPaperChemicalsPetroleum ._Rubber
Al! ManufacturingDurable goods __
Primary metalsFabricated metalsElectrical machinery _ _Nonelectrical machineryTransportation equipment
Nondurable goods
Monthly Averages, Seasonally Adjusted, in Billions of Dollars
1960
I II III IV
1961
I 1 II|
Percent Changes
1960-11to 1961-11
1961-1to 1961-11
Sa lea
31. 17
15.432.651.702.002.803. 50
15. 744.741.241.042.313.12
.54
30. 93
14. 982. 191. 741.972.813.48
15.954. 661.271.042.363.21.53
30. 23
14. 522. 001. 691.942.773.44
15.704.661.211.092.313.18
.49
29, 33
13. 841. 781 . 561.902.703.36
15. 494.701. 141. 052 253.21
.48
29.08
13. 401.791. 571. 932.742.87
15. 694.801. 111.082.313.16
.47
30.61
14.482. 051. 681.972.873.29
16. 134.771. 231. 162.453.27.50
1
3 6-3
02
-6
1
-312
42
6
5
814
25
15
3
117646
New Orders
30. 24
14.542.051.621.922.813.44
15. 70
30.31
14.501.851.701.932.803.49
15.81
29.87
14.291. 861.622.112. 583.45
15. 58
28.98
13. 521.721.501.872.683. 19
15.46
29.15
13. 351.821.541.872.772.92
15.80
30.85
14.682. 191.711.902.863.32
16.18
2
1181
-22
-5
2
6
10201123
14
2
erage sales have shown little changedining the first 6 months of this year.As can be seen in the table, secondquarter sales were running ahead of ayear ago in all major soft goods in-dustries except textiles and rubber; thelatter industries are importantlyaffected by demand from automobileproducers.
Steel and autos pace advance
Among the durable goods industries,the steel and motor vehicle industrieshave shown the greatest fluctuations inoutput over the recent cycle (see chart).About two-fifths of the seasonallyadjusted increases in total sales and neworders from the low point of January1961 through June was concentrated inthese two industries. New ordersreceived by aircraft companies showedlittle change from the first to the secondquarter of this year, seasonally ad-justed, but were well in excess of thecorresponding periods of last year.
Motor vehicle output was at a near-record rate during the last quarter of1960, but when sales expectations failedto materialize manufacturers cut backtheir production drastically during thewinter months. In early spring, de-mand for passenger cars increased and
the higher levels have continued throughthe second quarter. Manufacturers'sales of motor vehicles and parts rose25 percent, seasonally adjusted, fromthe first quarter of 1961 to the second.In spite of the improved picture duringthe second quarter, June sales and neworders, including defense contracts, forautomotive manufacturers were stillbelow a year earlier.
July output of 400,000 carsthefinal month of the 1961 model runwas5 percent lower than in July 1960; forthe 1961 model run as a whole, produc-tion of 5,400,000 units was one-tenthbelow the 1960 run. Plans for the nextmodel year include an earlier shutdownfor model turnover than has beencustomary in recent years, followed byresumption of fairly high production inSeptember. The restriction of outputto the volume of retail deliveries duringthe first half of 1961, a period whenstocks are normally increased, willpermit an orderly liquidation of theoutgoing models during the summerand fall.
Clearly outlined in the chart are thebuildup in the steel industry's salesand orders preceding the 1959 strike,the quick recovery and the subsequentsubstantial drop in activity during1960. New orders received during the
second quarter of this year showed again of 20 percent over the first quarterwhile sales rose 14 percent. Productionin June was running 15 percent abovea year ago and indications are thatJuly will also be above a year ago,although operations in steel as wellas other primary metals are stillconsiderably below capacity.
Machinery orders in rising phaseActivity in the machinery industries,
as can be seen in the chart, has beenfar more stable during the recent down-turn and recovery than most othermajor durable goods industries. Elec-trical machinery sales rose 2 percentbetween the first and second quarters,seasonally adjusted, a gain sufficient tobring sales back to the year-earlierrate. Nonelectrical machinery ship-ments and orders have shown onlymoderately more fluctuation than didthose of electrical machinery companies;
MANUFACTURERS' SALiS AND INVENTORIESNondurable Goods Sales Reach New HighDurables Recover Rapidly
Billion $20
15
SALES
Nondurabies
Durables
10 I i i i 1 1 I i i i i i I i i i i i I i i i i i I i i i i i ! 1 1 i i
Factory Stocks Stabilize in SpringFollowing Earlier Liquidation
35
30
25
20
INVENTORIES
Nondurabies\I L L
1959 1960 1961Monthly, Seasonally Adjusted
U. S. Department of Commerce, Office of Business Economics 61 ~8 ~3Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SURVEY OF CUEEENT BUSINESS August 1961
both sales and new orders are currentlyabove a year ago.
The increasing flow of new businessto producers of machinery and otherinvestment goods in the first half ofthis year suggests a near-term rise inexpenditures for new plant and equip-ment. This appears in line with reportsby business earlier this year that theyintend expanding investment in thecurrent quarter. The rise in machinerynew orders thus far in 1961, however,is not large; orders are up relativelyless since the start of the year thanin most other major durable goodsindustries.
Electrical machinery companies' neworders increased by nearly 8 percentfrom the January low to May, on a sea-sonally adjusted basis, but droppedoff sizably in June, as defense business,which is usually placed in heavy
Table 2.Military Obligations for Procurement, Research and Construction, 1957-61
Total
Major procurement _Aircraft..MissilesShips _Electronics _.Other .
Research
Construction
Billions of Dollars
1957
15.90
12.786.362.811.30.81
1.51
1.68
1.44
1958
22.66
18.218.134.921.941.311.91
2.50
1.96
1959
20.04
15.316.414.311.811.161.62
3.18
1.56
1960
20.99
14.946.294.101.981. 111.46
4.58
1.48
Percent Change
Januarv-May 1960
7.00
5.002.021.35.56.40.66
1.38
.62
January-May 1961
7.80
5.772.301.32.95.46.74
1.46
. 57
January-May 1960-61
11
1614
-2681513
6
-8
Source: Department of Defense.
volume at this time of year withelectronics companies, was short ofseasonal expectations. Sales of electri-cal machinery were consistently some-what higher than new orders receiptsduring the first half of this year andoutstanding orders backlogs have beenslightly reduced.
DURABLE GOODS MANUFACTURERS
Metals and Transportation Equipment Lead Sales Advance
PRIMARY METALSBillion $
2 ~
TRANSPORTATION EQUIPMENTBillion $
Sales
2 -
Changes in Machinery Business Relatively Smaller in Current CycleELECTRICAL MACHINERY NONELECTRICAL MACHINERY
Sales
7New Orders
2 -
1959 1960 1961 1959 1960 1961Monthly, Seasonally Adjusted
*U, S. Department of Commerce, Office of Business Economics
Nonelectrical machinery orders havetended steadily upward thus far in1961, particularly in areas related tononagricultural business machinery pur-chases. The expansion has been par-ticularly large in the industrial machin-ery groupsmetal working, special andgeneral industry equipmentand inengines and turbines, bringing neworders above 1960 rates. Shipmentsby these companies have matchedthe inflow of new business, and back-logs have not increased, remainingbelow the 1960 volume.
New orders received by agriculturaland office and store machinery com-panies in June were little differentfrom January, after seasonal allowances,although showing some growth frommid-1960. Construction m a c h i n e r ynew orders fell somewhat in the secondquarter of this year.
Producers of fabricated metals, stone,clay and glass, lumber products, andother durable goods have received about10 percent more orders in the secondquarter than the first, after seasonalallowances; shipments rose 5 percent.These industries are primary suppliersof building materials and have bene-fited from the steadily rising rate ofnew construction projects since earlythis year. However, business in theseindustries has not yet recovered tothe level of last year. Sales exceedednew orders during all of 1960 and thefirst quarter of 1961, but are nowslightly smaller, and unfilled ordersbacklogs have turned up.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
National Product and Income Recovers in Second Quarter
A. VIGOROUS upswing in output inthe April-June quarter initiated arecovery from the mildest of the fourpostwar recessions. GNP advanced atan annual rate of $15 billion from thefirst quarter to a new high of $516billion in current dollar terms. (Seechart.) The real volume of nationaloutput was about the same as at itsprevious cyclical peak a year earlier.
The second quarter recovery in GNPfeatured a marked shift from inventoryliquidation to accumulation, an upturnin the demand for automobiles andresidential construction, and continuedexpansion in government purchases andconsumer services. Fixed business in-vestment outlays and nondurable con-sumer goods expenditures rose slightly.Net exports of goods and services wasthe only major GNP component toshow a decline.
The increase in output and employ-ment was accompanied by a substantialrise in the flow of income. Personal in-
' TOTAL GNP INCREASES IN SECONDQUARTER
As Both Final Purchases andInventories Turnaround
Billion $550
500
450
Gross National ProductTotal
'"" Final Purchases
Inventory buildup
:v:!) Inventory liquidation
400 I . . i 1 . . . I . t 1 ' . . I i . - I . i1957 1958 1959 1960 1961 1962Quarterly Totals, Seasonally Adjusted, at Annual Rates
U. S. Department of Commerce, Office of Business Economics 61-8-5
come rose from the first quarter by over$8 billion to an annual rate of $413billion in the second. Most of this in-crease was in wages and salaries andwas attributable to higher employment,but Government transfer paymentswere also up, reflecting initial disburse-ments under the temporary unemploy-ment insurance program. Completedata on corporate profits for the secondquarter are not available at this time,but it would appear that the year-longdowntrend in profits was sharply re-versed.
Autos important in recoveryThe increase in GNP was sharper
than in any other initial quarter ofcyclical recovery in the postwar period.The comparative vigor of the recentupturn is discernible also on a monthlybasis in the movement of payrolls.
A shift from inventory liquidation toaccumulation was a major factor rein-forcing the effect of the increase in finalpurchases on total production. In theprevious two postwar cycles, liquidationof business inventories continued be-yond the turning point of GNP, thoughat somewhat reduced rates. The recentincrease in final purchases was alsolarger than in prior first quarters ofrecovery in the postwar period.
The production and sale of passengercars was the most important singlefactor in the second quarter recovery.Nearly half of the rise in total GNPrepresented increased production ofautomobiles. From the fourth quarterof 1960 to the first quarter of 1961 therehad been a decline in automobile pro-duction which exceeded that in totalGNP, and was the sharpest for theindustry in recent years.
The first quarter decline in auto pro-duction and sales was due in part to thereductions in total employment andearnings in the latter half of 1960, andthe unfavorable expectations they en-gendered. Supply and demand factorspeculiar to this d}rnamic industry also
pla}7ed an important role. The un-usually severe winter was an addedfactor in the sales decline. Seasonallyadjusted retail sales of cars, which hadbeen drifting downward since mid-October, declined sharply in December,and production was promptly adjustedto the lower sales which continuedthrough January and February. Stocksheld about level during these months inCONSUMER SPENDING
Total Rises in Second QuarterBillion $
350
300
Persona! ConsumptionExpendituresTotal
250 I i i i I i i i 1 i i i I i i i I i t i f t t r
Services Continue Uptrend150
100
Services
Little Change in Major Nondurable Lines100
50
Food
Durables Up From First Quarter Low50
Durables Exc. Autos
Autos *J_ I _L i I i t r
1957 1958 1959 1960 1961 1962Quarterly Totals, Seasonally Adjusted, at Annual Rates
U. S. Department of Commerce, Office of Business Economics 61-8-6
5Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
6 SURVEY OF CURRENT BUSINESS August 1961
contrast to the usual sharp seasonalrise. With the coming of spring, salesrose more than seasonally and thehigher levels continued into the secondquarter. Stocks declined slightly butsomewhat less than expected in thisperiod of the year. In spite of thesecond quarter improvement, automo-bile sales and production were sub-stantially below a year ago.
Support from GovernmentThe bulk of the second quarter
increase in GNP came in privateexpenditures, but the role of the FederalGovernment in stimulating businessactivity was important. In additionto the $2 billion annual rate increase indirect purchases of goods and services,the Federal Government institutedseveral programs swelling the flow ofincome in the economy, notably thefeed grain and the temporary unem-ployment insurance programs. Meas-ures affecting the supply of money andcredit designed to stimulate economicactivity will be noted later.
Consumption expenditures upPersonal consumption expenditures,
which had turned down in the openingquarter of the year with the decline inauto and other durable goods pur-chases, moved up in the second quarter.The $5K billion increase to an annualrate of $336 billion was concentrated inexpenditures for automobiles and serv-ices. (See chart.) Sales of durablegoods other than autosmainly furni-ture and appliancesshowed only mod-est increases which were not enough tobring them back to the highs of late1959.
Small changes were the rule for allthe major categories of nondurablegoods. Spending for food and bever-ages, which was up only slightly incurrent dollars, went up more in realterms as retail food pricesprincipallyof meat and dairy productsdeclinedfrom their first quarter average.Swing in inventories
The inventory swing from the first tothe second quarter featured changes instocks of automobile producers and
Table 1.-Gross National Product in Current and Constant Dollars (1-3, 1-5)[Seasonally adjusted, at annual rates]
FEDERAL GOVERNMENTExpenditures Exceed Receipts in First HalfOf 1961
Billion $105
100
95
90
85
80
75
70
Expenditures
Receipts
National Income Basis
I , , , | i i i I i ,
Gross national productPersonal consumption expendi-
tures
Durable goods _Nondurable goodsServices
Gross private domestic invest-ment- __ _
New constructionResidential rionfarmOther
Producers' durable equipment.Change in business inventories.
Nonfarm _Farm . .
Net exports of goods and services.ExportsImports _
Government purchases of goodsand services
Federal.. _National defenseOther . . ..Less: Government sales
State and local
1958 1959 19601960
II III IV
19
I
61
II
Billions of current dollars
444.5
293. 237.3
141.6114.3
56.635.518.017.4
23.1
-2.0-2.9
.91.2
22.721.5
93.552.644.88.3.5
40.8
482.8
314.043.5
147.3123.2
72.440.222.317.925.96.36.2.1
-.7
23.123.8
97.1
53.546.27.8.5
43.6
504.4
328.944.3
152.4132.2
72.4
40.721.119.627.54.2
4.0.3
3.0
26.723.6
100.1
52.945.58.0.6
47.2
506.4
329.945.3
153.3131.2
74.640.721.219.528.65.4
5.1.3
2.3
26.724.4
99.6
52.945.57.9.6
46.8
505.1
329.743.4
152.7133.6
70.540.4
21.019.4
27.7
2.4
2.0.4
3.0
26.823.8
101.9
54.045.49.1.6
48.0
504.5
332. 343.8
153.1135.4
65.640.720.520.2
26.7-1.9-2.2
.35.1
27.622.4
101.6
53.045.77.9.6
48.6
500.8
330.739.4
153.7137. 5
59.839.619 320.424.2
-4.0-4.3
.3
5.327.622.3
105.0
54.747.28.0.5
50.3
516.1
336.142.0
154.1139.9
68.841.320.620.724.7
2.82.4.4
3.926.422.5
107.3
56.648.88.3.5
50.6
1958 1959 19601960
II III IV
1961 I
I III
Billions of 1954 dollars a
401.3
273.235.5
133. 3104.4
49.031.116.214.819.4
-1.5-2.4
.8
-.2
21.421.6
79.3
44.5
34.8
428.4
289.341.0
138.8109.5
61.134.319.414.821.3
5.55.6-.0
-2.1
22.224.3
80.1
43.9
36.2
440.8
298.341.8
141.8114.7
60.633.918 016.022.7
4.03.8.2
1.7
25.323.6
80.2
42.3
38.0
443.4
299. 542.5
142. 9114.2
62.333.918 115.923.4
4.9
4.7_ 2
1.025.424.4
80.6
42.7
37.8
440.2
298.640.8
142.0115.8
58.633. 617.915.722.7
2.3
2.0.3
1.625.423.7
81.3
42.9
38.4
438.4
299.641.6
141.3116.6
54.933.917 516.4
22.1
-1.1
-1.3.2
3.526.122.6
80.3
41.6
38.7
433.2
297.037.6
141.6117.8
49.632.916 516.419.9
-3.2
-3.5.3
3.3
25.722.4
83.3
43.1
40.2
L445.5
1
301. 6 C
39.8142. 6 j119.2 *
57.31
34.1\
17 616.6 120.3 12.9 S
" i1.9
24.522.6 I
184.7
r
44.7 .
t..... j40.0
1957 1958 1959 1960 1961 1962Quarterly Totals, Seasonally Adjusted, at Annual Rates
U. S. Deportment of Commerce, Office of Business Economics 6 1 - 8 - 7
distributors; these accounted for thebulk of the inventory liquidation in thefirst quarter and for about one-fourthof the buildup in the second. Thesecond quarter increase in nonauto-motive stocks centered in trade. Man-ufacturers' stocks outside of the auto-motive industry were reduced somewhatas a continued liquidation in the stocksof durable goods' producers was onlypartly offset by accumulation in non-durable goods lines.
Business fixed investment stableThe second quarter increase in fixed
investment expenditures by businesswas minor in total, and individualindustry changes were likewise small.The latest OBE-SEC survey of capitalspending plans indicates a modestpickup in the second half of the year.Largely because of the presence ofexcess capacity, businessmen are usuallyreluctant to expand fixed capital out-lays in the early stages of recovery.Thus, business fixed investment con-tinued to decline in the initial phase ofthe 1958 upturn and was stable during1954 after total production had startedto rise.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
August 1961 SURVEY OF CURRENT BUSINESS
Upturn in residential constructionResidential construction increased by
$1% billion from the first quarter to anannual rate of $20% billion in the second,offsetting about one-fourth of thedecline since its prior peak in thesecond quarter of 1959. Recent fluctu-ations in residential construction activ-ity have been confined to one-familydwellings; apartment house construc-tion has continued to increase.
The Federal Government in early1961 sponsored a number of measureswhich tended to stimulate the housingmarket. Aside from a policy aimed ateasing credit conditions in long-termmarkets in general, these includedFNMA's announcement of higher buy-ing prices for FHA insured mortgages,an increase in borrowing rights ofsavings and loan associations with theFederal Home Loan Banks, and areduction in the maximum permissibleinterest rate on FHA insured mortgages.
Nonfarm housing starts in June, at anannual rate of 1.4 million seasonallyadjusted, were about 250,000 higherthan the low point in January, indi-cating a further near-term rise inresidential construction activity. Ap-plications for FHA mortgages, adjustedfor seasonal variation, have also beenincreasing in recent months.
The Housing Act of 1961, passed onJune 30, authorizes FHA to insureno-dowii-payment mortgages withterms up to 40 years in hardship casesand 35 years in others, as well as homeimprovement loans up to 20 years.The Act also provides for specialhousing for the elderly; loans and grantsfor mass transit facilities, sewers, water-works and other public works; fundsfor the acquisition and preservation ofopen spaces in urban areas; loans forcollege housing, and general urbanrenewal support.
Federal expenditures riseGovernment purchases of goods and
services contributed $2% billion to thesecond quarter rise in GNP, with theFederal Government accounting forthe bulk of the increase. Defensespending rose to its highest rate in 3years, and is expected to show furthersubstantial increases in the quartersahead as recent administration de-
cisions to increase the defense programare implemented.
In addition to stepping up its directdemand for goods and services, theFederal Government further added tothe flow of income through the tempo-rary extension of unemployment in-
surance benefits, and payments tofarmers participating in the feed-grainprogram. Total Federal expenditureswere up about $3 billion in the secondquarter; with a comparable rise intaxes, the budget deficit (on a nationalincome basis) held close to $5 billion.
(Continued on page 32)Table 2.Personal Income and Its Use (II-2)
Personal income
Wage and salary disbursements
Commodity-producing industriesM anufacturing only
Distributive industriesService industriesGovernment
Other labor income
Proprietors' income _ _ __
Business and professional.Farm
Rental income of persons
Dividends _ _ . _
Personal interest income.
Transfer payments _ _
Old-age and survivors insurance benefitsState unemployment insurance benefitsVeterans' benefits ._Other
Less: Personal contributions for social insurance..-
Less: Personal tax and nontax payments
FederalState and local
Equals : Disposable personal income
Less: Personal consumption expenditures
Equals: Personal saving
Addendum: Disposable personal income in constant(1954) dollars
1958
360.3
239 8
97.976.763.834.843.2
9.4
46.1
32.513.5
12.2
12 A
21.0
26.3
8.53.94.69.4
6.9
42.3
36.65.7
317.9
293.2
24.7
296.3
1959
383.3
258.5
107.284.768.237.745.3
10.3
46.3
35.011.3
11.9
13.4
23.6
27.2
10.22.54.5
10.0
7.9
46.0
39.66.4
337.3
314.0
23.4
310.6
1960
402.2
271.3
110.487.471.840.748.4
10.9
48.2
36.212.0
11.7
14.1
26.2
29.1
11.12.84.6
10.0
9.3
50.4
43.27.2
351.8
328.9
22.9
319.0
1960
II III IV
1961
I II
Seasonally adjusted at annual rates
403.1
272.4
111.888.572.340.547.8
10.8
48.6
36.412.3
11.7
14.0
26.1
28.6
11.2a 44.5
10.5
9.2
50.5
43.37.2
352.7
329.9
22.8
320.3
405.1
273.2
110.587.272.541.249.0
10.9
48.7
36.312.4
11.7
14.1
26.4
29.3
11.32.94.5
10.6
9.3
50.8
43.57.3
354.4
329.7
24.6
321.0
405.4
271.3
108.085.272.141.549.7
11.2
49.0
36.312.7
11.7
14.3
26.7
30.6
11.43.84.6
10.8
9.3
50.5
43.17.4
354.9
332.3
22.7
320.1
404.7
270.1
106.183.871.841.850.4
10.8
48.9
36.012.9
11.5
14.2
26.8
32.0
11.83.84.7
11.7
9.5
50.3
42.67.7
354.3
330.7
23.7
318.4
413.2
277.3
110.787.572.842.551.3
10.8
49.2
36.312.9
11.5
14.2
27.0
32.9
12.54.54.8
11.1
9.7
51.4
43.67.8
361.8
336.1
25.8
324.8
Table 3.Gross National Product by Major Type of Product in Current and ConstantDollars (1-6, 1-7) *
[Seasonally adjusted at annual rates]
Gross national product
Final salesInventor v change.
Goods outputFinal sales _-Inventory change
Durable "oods outputFinal sales _ .. _Inventory change
Nondurable goods outputFinal salesInventory change
Services __
Construction _ _
1958 1959 19601960
II III IV
1961
I II
Billions of current dollars
444.5
446.5-2.0
229.4231.4-2.0
80.483.3-2.8
149.0148.1
.9
164.2
50.9
482.8
476.56.3
250.3244.0
6.3
94.991.33.6
155.4152.8
2.6
176.2
56.2
504. 4
500.24.2
258.5254.3
4.2
96.794.32.5
161.8160.0
1.8
189.3
56.6
506.4
501.05.4
262.3256.9
5.4
100.296.33.9
162.1160.6
1.5
187.7
56.4
505.1
502.72.4
257.2254.8
2.4
94.694.2
.4
162.6160.6
2.0
191.2
56.7
504.5
506.4-1.9
252.8254.6-1.9
89.593.4
-3.8
163.2161.3
2.0
194.6
57.2
500.8
504.8-4.0
245.7249.7-4.0
81.687.4
-5.8
164.1162.3
1.8
197.9
57.2
516.1
513.22.8
257.1254.3
2.8
90.991.2-.3
166.2163.0
3.2
201.1
57.9
1958 1959 19601960
II III IV
1961
I II
Billions of 1954 dollars
401.3
402.8-1.5
211.5213.1-1.5
71.774.1
-2.4
139.8139.0
.8
145.2
44.5
428.4
422.95.5
228.6223.1
5.5
82.979.83.1
145.7143.3
2.4
151.7
48.1
440.8
436.84.0
234.6230.6
4.0
84.782.42.3
150.0148.3
1.7
158.7
47.5
443.4
438.54.9
237.9233.0
4.9
87.483.93.5
150.6149.1
1.5
158.0
47.4
440.2
437.92.3
233.3231.1
2.3
82.582.1
.4
150.8148.9
1.9
159.4
47.4
438.4
439.5-1.1
228.9230.0-1.1
79.082.0
-3.0
149. 8148.0
1.9
161.6
47.9
433.2
436.5-3.2
221.9225.2-3.3
71.476.5
-5.1
150.5148.7
1.8
163.2
48.0
445.5
442.62.9
232.5229.7
2.9
79.479.6-.2
153.2150.0
3.1
164.7
48.3
i For quarterly data beginning in 1947, see SURVEY OF CURRENT BUSINESS July, 1961, pages 34 and 35.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
8 SURVEY OF CURRENT BUSINESS August 1961Table 4.Relation of Gross National Product, National Income,
and Personal Income (1-18)[Billions of dollars]
Table 6.Personal Consumption Expenditures by Major Type(H-6)
[Billions of dollars]
Gross national product
Less: Capital consumption allowance,
Equals: Net national product
Less: Indirect business tax and nontaxliability.
Business transfer paymentsStatistical discrepancy
Plus: Subsidies less current surplus ofgovernment enterprises
Equals: National income
Less: Corporate profits and inventoryvaluation adjustment
Contributions for social insur-ance _ _ _
Excess of wage accruals over dis-bursements _ -
Plus: Government transfer paymentsto persons
Net interest paid by governmentDividendsBusiness transfer payments
Equals: Personal income
1958
444. 5
38.6
405.9
39.31.8
-1.5
1.1
367.4
37.2
14.8
0
24.56.2
12.41.8
360.3
1959
482.8
40.8
442. 0
42.71.8
-1.7
.4
399.6
46.4
17.6
0
25.47.1
13.41.8
383.3
1960
504.4
43.1
461. 4
45.61.8
-2.6
.5
417.1
45.1
20.7
0
27.37.8
14.11.8
402.2
1960
II III IV
1961
1 II
Seasonally adjusted at annualrates
506.4
43.0
463.4
45.91.8
-2.9
.6
419.2
45.9
20.7
0
26.87.8
14.01.8
403.1
505.1
43.2
461.9
45.51.8
-4.0
.5
419.0
44.1
21.1
0
27.57.8
14.11.8
405. 1
504.5
43.7
460.9
45.91.8
-2.9
.5
416.5
42.9
20.8
0
28.87.7
14.31.8
405. 4
500.8
44.2
458. 6
45.71.8
-2.6
.5
412.2
40.0
21.2
0
30.17.5
14.21.8
404.7
516.1
45.0
471.1
46.41.8na
1.4
na
na
21.7
0
31.07.3
14.21.8
413.2
Table 5.Government Receipts and Expenditures (III-3. IIT-4)[Billions of dollars]
Federal Government receipts
Personal tax and nontax receipts. _Corporate profits tax accrualsIndirect business tax and nontax
accrualsContributions for social insurance-
Federal Government expenditures
Purchases of goods and services
Transfer paymentsTo persons .Foreign (net)
Grants-in-aid to State and localgovernments
Net interest paid
Subsidies less current surplus ofgovernment enterprises
Surplus or deficit ( ) on incomeand product account
State and local government receipts. - -
Personal tax and nontax receipts. _Corporate profits tax accrualsIndirect business tax and nontax
accruals _ _ -Contributions for social insurance ..Federal grants-in-aid
State and local government expendi-tures
Purchases of goods and servicesTransfer payments to personsNet interest paidLess: Current surplus of govern-
ment enterprises
Surplus or deficit ( ) on incomeand oroduct account
1958
78.5
36.617.7
11.912.4
87.9
52.6
21.320.01.3
5.4
5.6
3.0
-9.4
42.0
5.71.0
27.42.55.4
44.1
40.84.5.6
1.9
-2.1
1959
89.4
39.621.9
13.014.9
91.2
53.5
22.220.61.5
6.6
6.4
2.6
-1.8
46.5
6.41.2
29.62.76.6
46.9
43.64.8.7
2.2
-.4
1960
96.0
43.221.2
14.017.7
92.8
52.9
23.722.21.6
6.1
7.0
2.9
3.3
49.2
7.21.2
31.63.06.1
50.6
47.25.1.7
2.4
-1.4
1960
II III IV
1961
I II
Seasonally adjusted at annualrates
96.9
43.321.8
14.217.7
92.5
52.9
23.421.81.6
6.1
7.1
2.9
4.5
49.2
7.21.2
31.73.06.1
50.1
46.85.0.7
2.3
-1.0
95.6
43.520.3
13.818.0
94.2
54.0
24.022.41.5
6.2
7.1
2.9
1.4
49.4
7.31.1
31.73.16.2
51.3
48.05.0.7
2.4
-1.9
94.6
43.120.0
13.817.6
94.2
53.0
25.323.71.6
6.0
7.0
2.9
.4
49.7
7.41.1
32.13.26.0
52.0
48.65.1.7
2.5
-2.3
92.5
42.618.6
13.318.0
98.0
54.7
26.524.81.6
7.1
6.8
3.0
-5.5
51.4
7.71.0
32.43.27.1
53.8
50.35.3.7
2.5
-2.4
na
43.6na
13.618.4
101.1
56.6
27.125.71.5
6.8
6.6
4.0
na
na
7.8na
32.93.36.8
54.2
50.65.4.8
2.6
na
Goods and services, total
Durable goods, total
Automobiles and parts
Furniture and household equip-ment -_. __ _
Other
Nondurable goods, total
Food and beverages
Clothins and shoes
Gasoline and oil
Other . _ ___ _ .
Services, total _
Housing _ _ _ _ _
Household operation. _
Transportation
Other
1958
293. 2
37.3
13 9
17.4
6.0
141.6
76 6
25.7
10 5
28.8
114.3
37.7
16.9
9.2
50.6
1959
314.0
43.5
18.1
18.9
6.6
147.3
78 0
27.4
11.0
30.9
123.2
39.9
18.1
10.0
55.2
1960
328.9
44.3
18.6
18.8
6.9
152.4
80.1
28.1
11.6
32.6
132. 2
42.2
19.6
10.5
59.9
1960
II III IV
1961
I II
Seasonally adjusted atannual rates
329.9
45.3
19.3
19.0
7.0
153. 3
80.6
28.3
11.6
32.8
131.2
41.9
19,5
10.5
59.3
329.7
43.4
17.8
18.7
6.9
152.7
79.9
28.3
11.6
32.9
133. 6
42.7
19.7
10.5
60.8
332. 3
43.8
18.6
18.3
6.8
153. 1
80.8
27.7
11.8
32.7
135.4
43.1
20.0
10.5
61.7
a30.-7
39.4
14.8
17.8
6.8
153.7
81.1
27.9
11.7
33.0
137. 5
43.6
20.6
10.5
62.8
336.1
42.0
16.7
18.3
7.0
154.1
81.4
27.6
11.7
33.4
139.9
44.2
20.9
10.7
64.1
Table 7.Foreign Transactions in the National Income Accounts(IV-2)
[Billions of dollars]
Receipts from abroad
Exports of goods and services
Payments to abroad
Imports of goods and services - _ -Net transfer payments by Govern-
ment - -_Net foreign investment
1958
22.7
22.7
22.7
21.5
1.3-.1
1959
23.1
23.1
23.1
23.8
1.5-2.3
1960
26.7
26.7
26.7
23.6
1.61.5
1960
II III IV
1961
I II
Seasonally adjusted at annualrates
26.7
26.7
26.7
24.4
1.6.7
26.8
26.8
26.8
23.8
1.51.4
27.6
27.6
27.6
22.4
1.63.6
27.6
27.6
27.6
22.3
1.63.7
26.4
26.4
26.4
22.5
1.52.4
Table 8.Sources and Uses of Gross Saving (V-2)[Billions of dollars]
Gross private saving
Personal savingUndistributed corporate profits. _ .Corporate inventory valuation
adjustmentCapital consumption allowanceExcess of wage accruals over dis-
bursements
Government surplus on income andproduct transactions
Federal - -- -State and local
Gross investment
Gross private domestic invest-ment .- . -_ -
Net foreign investment
Statistical discrepancy .. ..
1958
69.5
24.76.4
.338.6
.0
11.4
9.42.1
56.6
56.6.1
1.5
1959
74.0
23.410.3
.540.8
.0
-2.2
1.8.4
70.1
72.42.3
1.7
1960
74.6
22.98.6
.043.1
.0
1.9
3.31.4
73.9
72.41.5
-2.6
1960
II III IV
1961
I II
Seasonally adjusted at annualrates
74.7
22.89.3
.443.0
.0
3.5
4.51.0
75.3
74.6.7
-2.9
76.4
24.67.6
.943.2
.0
.5
1.41.9
71.9
70.51.4
4.0
73.9
22.77.2
.343.7
.0
1.9
.42.3
69.1
65.63. 6
2.9
74.0
23.75.8
.444.2
.0
-7.9
5.52.4
63.5
59.83.7
2.6
na
25.8na
na45.0
.0
na
nana
71.3
68.82.4
na
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
BY ROBERT E. GRAHAM, JR. AND EDWIN J. COLEMAN
Consumer Incomes Up in All Regions in 1960_L ERSONAL income was at a recorddollar total in each of the 50 States lastyear as the Nation's economy firstmoved ahead under the impetus ofexpanded demand and then turneddown briefly.
For the country as a whole, individualincomes in 1960 totaled $400 billion$19 billion, or 5 percent, more than in1959. Despite a 1% percent increase inconsumer prices, real incomes were upthroughout the country.
Uniformity in State rates of changefrom 1959 was a feature of last year'sincome flow. More than half of theStates (28) came within 1 percentagepoint of the national pace. By regions,uniformity was even more pronounced.
There were five States in which the1960 relative gain exceeded the nationalaverage by substantial margins. Thelargest occurred in South Dakota wherefarm income more than doubled, push-ing the aggregate income up by one-fourth.
Next largest rates of gain from 1959to 1960 were in Alaska and NorthDakota (13 percent each), Hawaii (12percent), and Arizona (11 percent). InNorth Dakota, the rise centered mainlyin agriculture. In the other threeStates, the above-average increasesreflected pervasive gains throughoutmost of their economies.
Although business declined in thelatter part of 1960, the reduction wasmoderate. Individual incomes in everymonth of last year were higher than inthe corresponding month of 1959, andtotal income on a seasonally-adjustedbasis rose through October. The down-turn that followed was comparativelymild and short-lived, and by March of1961 personal income had recovered allof the ground lost since the prerecessionOctober peak.
For the country as a whole, percapita personal income (total incomedivided by total population) amountedto $2,223 in I960up $63, or 3 percent,
from 1959. Price increases nearlycounterbalanced this rise, however, andreal per capita income in 1960 was onlya little more than in 1959.
Average incomes in 1960 were highestin Delaware ($3,013), the Districtof Columbia ($3,008), Connecticut($2,863), Nevada ($2,844), New York($2,789), Alaska ($2,735), California($2,741), New Jersey ($2,665), Illinois($2,613), and Massachusetts ($2,519).The fact that all of these States exceptAlaska are located in New England, theMideast, Great Lakes, and Far West isindicative of the concentration of highincomes in the north and west.
This article continues the series ofreports on State changes in personalincome published annually in the SUR-VEY. The estimates for 1960 presentedhere are revisions of the preliminaryfigures published in the April 1961issue of the SURVEY. Those for 1958and 1959 also are revisions of earlierestimates. For convenience, total in-
Regional Increases in Total Personal Income Were Generally Similar Last Year
Major Differences Came From Developments in Agriculture and Manufacturing
10 15 -5Percent Change 1959-60
5 10 15 20 0 10 15 20 0 10 15 20
ToinlUnited States
New England
Mideast
Great Lakes
Plains
Southeast
Southwest
Rocky Mountain
Far West
zp-.r
Farm IncomeT~Fari
f"22%
.
D.IT
U. S. Department of Commerce, Office of Business Economies
60143161 2Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
10 SURVEY OF CURRENT BUSINESS August 1961
come for the years 1954-57 and percapita income for 1950-57 are reprintedin table 1 along with the 1958-60 data.Total and per capita income figures forearlier years may be found in thePersonal Income supplement to theSURVEY.1
Industrial DevelopmentsNationally, income in all major indus-
tries advanced from 1959 to 1960. Asindicated in the chart, State differencesin rates of total income change lastyear stemmed mainly from develop-ments in farming and manufacturing,although variations in other industriesalso had an impact.Farm income volatile
On a national basis, farm incometotaled 4 percent more in 1960 than in1959a somewhat smaller increase thanthe average of all nonfarm components.By States and regions, income fromagriculture showed the widest variationsin rates of change. These ranged fromdrops of one-tenth in several majoragricultural States to a more thandoubling in South Dakotathe latter inpart a recovery from the previous year'sdecline in wheat production. Therewere reductions in 18 States and in-creases in 30; in 7, the decline was 10percent or more; in 14, the gains ex-ceeded 15 percent.
The influence of farming on changesin total income in 1960 shows mostclearly in the Plains region. Five ofthe seven States in this area experiencedexceptionally large gains in farm incomelast year, and 3 of theseSouthDakota, North Dakota, and Ne-braskawere among the top half-dozen States in the Nation in terms ofrelative increase in total income. Onthe other hand, declines in incomefrom agriculture were primary factorsin the limited gains in aggregate incomein Iowa and Missouri.
Except in the last two States, there1. "Personal Income by States Since 1929" is available from
the Superintendent of Documents, U.S. Government Print-ing Office, Washington 25, D.C., or from the Department'sField Offices at $1.50 per copy. The text of the report providescomplete explanations of the concept, statistical derivation,and reliability of the estimates, as well as an analysis ofgeographic income shifts over the period. The PersonalIncome supplement also contains detailed breakdowns ofincome in each State according to type and industrial sourcefor the years 1929-53. Details for 1954-56 may be found inthe August 1959 SURVEY; for 1957 in the August 1960 SURVEY,and for 1958-60 in tables 4-70 of this issue.
were gains in most types of farming inthe Plains, but the bulk of the net in-come rise came from a step-up of morethan one-third in the value of wheatproduction. In all States of the region,gross income from meat animals de-clined, while in Iowa and Missourilower wheat production pushed the totalvalue of crops in 1960 below that in1959.
Elsewhere agricultural developmentswith discernible effect on the totalincome flow included an increase inincome from tobacco farming in NorthCarolina; a spurt of two-thirds in cashTable I.Changes in Total and Per Capita
Selected Yea
receipts from potatoes in Maine; in-creased production of crops generally inOklahoma; sharp increases in wheatproduction in Oklahoma, Texas, Ohio,and Indiana; a decline in the value ofcotton production in the States of the"old" cotton belt; and reductions inincome from cattle and calves in mostStates as 1960 prices fell short of thosein 1959.Manufacturing a limiting factor
For the country as a whole, earningsof persons engaged in manufacturingincreased 3 percent from 1959 to 1960,half the rate of increase in nonmanu-Personal Income, bv States and Regions,
rs, 1950-60 i
State and region
United StatesNew England
M aineN^ew HampshireVermont __ _ _MassachusettsRhode IslandConnecticut __ _ _ _
Mideast __ - _ _ _New YorkNew Jersey _ -PennsylvaniaDelawareMarylandDistrict of Columbia _ _ _
Great Lakes _ _ _ _MichiganOhio _ _ _ _ _IndianaIllinoisWisconsin
PlainsMinnesota _ _ _Iowa _MissouriNorth Dakota . _ _ _ _South DakotaNebraska _ _Kansas
SoutheastVirginiaWest VirginiaKentucky. _Tennessee -North CarolinaSouth CarolinaGeorgiaFloridaAlabama __MississippiLouisiana - _Arkansas
SouthwestOklahomaTexas _ _ _ _ _New MexicoArizona
Rocky MountainMontanaIdahoWyomingColoradoUtah
Far West --- -Washington. _.OregonNevadaCaliforniaAlaskaHawaii
Total personal income
Percent of United States
1950
100. 006.73.48.31.20
3.45. 57
1.72
26.3612.433.867.30.31
1.67.79
22.514.795.722.667.102.24
8.801.861.682 53.35.35.86
1. 17
15.171.78.98
1.261.461.82.83
1. 561.611.18.71
1.30.68
6.501.114.61.35.43
2.23.42.34.21.86.40
11.701.771.09.14
8.70
.14
.31
1957
100. 00
6.54.46.31.18
3.25.49
1.85
25.4011.814.076.75.35
1.83.59
22.504.855.992.646.872.15
8.051.771.462.38.27.81.76
1.10
15.421.83.88
1.201.391.71.81
1.562.231.21.61
1.40.59
6.801.074.75.40.58
2.26.37.31.19.97.42
13.031.67.97.19
10.20
.15
.31
1960
100. 00
6.51.46.32.18
3.25.48
1.82
24.9811.734.066.42.34
1.86.57
21.564.565.692. 5'56.612.15
7.991.761.382.38.28.31.75
1.13
15. 641.84.78
1.181.381.80.84
1.592.481.20.64
1.31.60
6.801.084.63.43.66
2.28.34.30. 19
1.02.43
13. 721.661.00.20
10.86
.16
.36
Percentchange
1959 to 1960
5
5765535
4454554
444534
5623
132385
4423366564322
4532
11
642686
64486
1312
Per capita personal income
Percent of United States
1957
100
112829181
11497
137
117124124105141108130
11011011099
12296
9191919573789288
71828070686659698965487656
8780897988
929482989785
11710496
123122
11794
1960
100
111859384
113100129
117125120102136108135
10710410598
11898
9392909978839593
72837569707163728966537260
8683878190
959181
10510486
119104102128123
123102
Percentchange
1959 to 1960
3
3653333
3333335
232422
4422
122374
3322265313201
231i5
420463
33353
77
i Computed from tables 1 and 2.Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
August 1061 SURVEY OF CURRENT BUSINESS 11
facturing income. The national in-crease reflected recovery from the1957-58 recession; the upswing follow-ing the 1959 steel strike and its sec-ondary effects; and the 1960 businessdecline which centered in a slide indurable goods production. Because ofState differentials in manufacturing,the impact of these developments variedthroughout the country.
In New England, the Mideast, andthe Great Lakes the relative smallnessof the gain in manufacturing incomeretarded significantly the overall income
rise. Because of the lesser importanceof factory production in the economyof the Plains, Southwest, and Far West,the comparatively small increase inmanufacturing activity in each of theseregions had limited effect on total in-come. By contrast, a rise of one-tenthin factory earnings in the Rocky Moun-tain Statescentering in Colorado andUtah and noted belowreinforced theupswing in nonmanufacturing incomethere even though these are the leastindustrialized States in the country.In the Southeast, income from manu-
facturing increased at the same rateas that in other industries, generally.
Approximately one-half of the Na-tion's income from manufacturing isderived from six major industries, andmany of the 1959-60 State changes canbe explained largely by changes in thewages and salaries paid out by thesegroups.
Payrolls increased 3 percent on anational basis in those industries pro-ducing primary and fabricated metalsand nonelectrical machinery. They de-clined 4 percent in aircraft production.
Table II.Percent Changes in Industrial Sources of Personal Income, by States and Regions, 1959-60
State and region
United Slates
New EnglandMai noNew HampshireVermontMassachusettsRhode IslandConnecticut
MideastNew YorkNew JerseyPennsylvaniaDelawareMarylandDistrict of Columbia
Great LakesMichiganOhioIndianaIllinoisWisconsin . _
PlainsMinnesotaIowaMissouriNorth DakotaSouth Dakota _ . _ _NebraskaKansas
SoutheastVirginia _ _ _ _ _ -West VirginiaKentuckyTennesseeNorth CarolinaSouth CarolinaGeorgia.- _ _ __.Florida.AlabamaMississippiLouisianaArkansas
Southwest . .Oklahoma _ _ _ _ _ _TexasNew MexicoArizona
Rocky MountainMontanaIdahoWyomingColoradoUtah
Far WestWashingtonOregonNevadaCalifornia __ _
Alaska _ _ _Hawaii- _ . _ _ _ _ _ _ _
Ei
Totalper-
sonalincome
5
5765535
4454554
444533
5623
132385
4423366564322
4532
11
642686
64486
1312
Farmincome
4
227665
1006
11n112325
20
1618
-101416
-9-658
1331321-11110
-1-12
167
-10-11-10-9
130-5-8
924
6-15
17-8
120-1
-27 1
50
*
Non-farm
income
5K
5(>55354
.
4554
444534
45435683
44134664
4524
4333
11
643986
64496
1312
irces of income
Go vern ment in comedisbursements
Total
7
864729
6566
64
879886
7676
12587
633
465678952
65668
7
6886
1058
11
107
Fed-eral
(5886
9__2
4454
53
7
86
586
1549
5246374567931
55654
711996
86
79
88
Stateand local
8
6
64
117
8
710s
129
889996
66669577
892965
8108985
7568
15
7336
108
124
109
13
304
Privatenonfarmincome
4
5465545
4453444
343434
45332782
4512456473325
32226
622986
533
105
1616
Income received by persons for participation in current production
Allprivate
nonfarmindus-tries
4
54
!4
155534342445331
9245124674733153222
12
722
1187
i 533
i 106
1818
Min-ing
0
30000
:.4
0
21710Q
106
2903
-23-8
8-6-2-5-6
1-3
700
1290
-3-9
0-52
22
3027
~010080
152
-180
Contractconstruc-
tion
9"
31582
3116
-1-8
1-2
31
-21137444
2228123
4-2
45
13213r
-614230
-919
6-1
3308
-32
1214
32
Manu-factur-
ing
3353331343456302423022402
-3-2
8-1
463244629121520129
1051
10121631034
269
Whole-sale and
retailtrade
57596767
44834564454453433046246234554744233323
10513
146563347
3215
Finance,insur-
ance, andreal
estate
6645564644553636566667785
10987754688898295
7975
12
76
1077
75688
1726
Corn-Trans- munica-porta- tions andtion public
utilities
2
2340224
4450
18512341121212030^114112
431112223221
0-2__2
212
32133
100
55540506557452
-33245354632
18132
66145867
1165354244
11
434652
4115
57H
Serv-ices
7
99
1011989778678
6
86888
10898
11677466
1111
95677564
14
10755
148977
169
1827
1 To maintain comparability, both the numerator and denominator include Alaska and Hawaii.Digitized for FRASER
http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
12 SURVEY OF CURRENT BUSINESS August 1961
These changes were primarily respon-sible for the smallness of the rise intotal manufacturing in the Great Lakes,Plains, and Southwest. In contrast,there were gains of 6 and 8 percent,respectively, in payrolls of auto andelectrical machinery producers. Thespurt in auto production was concen-trated in Michigan and was the mainfactor in that State's comparativelyfavorable manufacturing experiencelast yearthe best in the Great Lakesregion, and one of the best among majorindustrial States.
The 8-percent advance in payrolls ofmanufacturers of electrical machineryfocused on California where a rise ofmore than $200 million in 1960 approxi-mately matched the payroll declines inthat State's large aircraft industry.
Expansion of electrical machineryproduction in Massachusetts and ofnonelectrical machinery in Connecticutdid much to boost overall factory pay-rolls in New England, although, onbalance, these gains did not offset thesluggishness of the payroll rise else-where in New England's factoryeconomy.
In a number of States the course ofmanufacturing last year was dominatedby developments in a single industry.In Rhode Island, a decline in textiles;in Kansas, slackened aircraft produc-tion; in Montana, and Idaho, de-creased payrolls in lumbering; in Colo-rado, a speedup in the aircraft industry;and in Delaware, a spurt in chemicalproduction. In contrast, the sizablefactory payroll gains in Utah (17 per-cent) and Arizona (9 percent) werebroadly based with payrolls advancingin seven of the eight major manufac-turing industries in these two States.
Government income disbursements
Government income disbursementsgave buoyancy to the income flow in1960. The total paid directly to indi-viduals by Federal, State, and localgovernments increased $5 billion, or 7percent, from 1959 to 1960, the largestadvance in any major component.There was uniformity in rates of changeamong regions, with only the Far Westscoring a gain appreciably differentfrom the national figure. There, gov-ernment added $1 billion to the area's
income flow and accounted directly forone-third of that region's top-rankingincome rise.
Largest increases in government in-come payments from 1959 to 1960allapproximately one-tenthwere scoredin California, Ohio, Oregon, Mississippi,and North Dakota. In each, wagesand salaries paid government employeeswas a primary factor. In Californiaand Ohio, the advance was concentratedin State and local agencies. In Mis-sissippi and Oregon, both Federalcivilian and State and local payrollsincreased; while in North Dakota, asharp rise in military pay provided themajor impetus.
Conversely, in Rhode Island, Ar-kansas, Virginia, West Virginia, Ver-mont, Tennessee, and the District ofColumbia, declines in military payrolls,together with only limited gains inFederal civilian payin part a reflec-tion of the curtailment in militaryactivitiesheld the advances in totalgovernment income disbursements tobelow-average proportions.
Factors other than payrolls intro-duced some irregularities into the flowof government income disbursementslast }^ear. In Pennsylvania and Illinois,payments of bonuses to veterans ex-panded sharply. In Iowa, Minnesota,and Montana, completion of veterans'bonus payments in 1959, or their sharpreduction in 1960, had a dampeningimpact on government income.
In a half-dozen States changes inunemployment benefits had substantialinfluence on the flow of total income.In California and Ohio, UI disburse-ments were up $150 million and $65million, respectively. In addition tolegislative actions relating to the dura-tion and rates of benefits, unemploy-ment rose sharply in both States asaircraft production in California andauto and auto-parts manufacturing inOhio were curtailed.
Sizable reductions in UI disburse-ments in New York, New Jersey,Pennsylvania, Delaware, West Virginia,and Illinois reflected both the exhaus-tion of benefit rights by many persons,as well as a lower volume of payments inthese industrial States as the Tempo-rary Unemployment Compensation Actof 1958 terminated in early 1959.
Changes in other industriesNationally, earnings of persons en-
gaged in mining in 1960 were littlechanged over the previous year; this,however, represented an "averaging-out" of significant changes in several ofthe major mining States. There weredeclines in coal and petroleum-produc-ing States and significant gains in thosewith a concentration of mining andquarrying other than fuel. Minnesotascored a top-ranking gain of nearly one-third in income from mining as iron oreshipments almost doubled the strike-affected levels of 1959.
In most regions the increase inconstruction earnings paralleled thenational advance of 3 percent. ByStates, however, disbursements in thisindustry exhibited wide variations rang-ing from a decline of nearly one-tenthin North Dakota to an increase ofalmost one-third in Wyoming.
An increase in roadbuilding projectswas a primary factor in the expansionof construction income in South Dakota,Nebraska, Arkansas, and Nevada. InAlaska, outlays for highway construc-tion more than doubled, providing apartial offset to declines in nonhighwayconstruction due to completion ofdefense projects. Conversely, termi-nation of roadbuilding projects in thelatter part of 1959 and 1960 appreciablyretarded the flow of income from con-struction in Pennsylvania, NorthDakota, Kentucky, and Kansas.
Income of persons engaged in thenumerous trade and service establish-ments registered a top-ranking gain of6 percent. The rise was broadly basedand although most States conformedclosely to the uniform regional pattern,noteworthy gains ranging from one-tenth to one-fifth were scored by thetourist-oriented areas of Nevada, Ari-zona, Florida, Hawaii, and the Districtof Columbia.
The economy in early 1961
Last year's business decline did notmanifest itself in the personal incomeflow until late in 1960, and hence, itsgeographic impact is blurred in thecomparisons involving calendar years1960 and 1959 which have formed thebulk of this report.
Because recent period changes in theDigitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
August 1001 SURVEY OF CURRENT BUSINESS 13
production cycle centered in the manu-facturing industry, a gauge of their geo-graphic effects may be had throughcomparison of monthly changes in fac-tory payrolls which can be estimatedfrom employment and earnings datacompiled by the Bureau of Labor Sta-tistics. In the first quarter of 1961,payrolls in manufacturing were $5 bil-lion (at annual rates) less than in thecorresponding quarter of the previousyear. Declines were confined generally
to the central and eastern areas of theNation, with the largest reductions inthe most industrialized States. In con-trast, the western regions registeredmoderate improvements in factorypayrolls over the year.
By May of 1961, the economy hadpassed the prerecession peak, and man-ufacturing wages and salaries hadrecovered most of the fall and winterreductions. Recovery lagged most
wiiere the declines had been greatestthe Great Lakes and Mideast. Simi-larly, the Western States continued toforge ahead in factory production. Itis significant that wages and salaries inthe Great Lakes, Mideast, and NewEngland States are currently at aboutthe same level as 4 }rears agojust priorto the 1957 recession; those in the lessindustrialized regions of the south andwest are one-fifth higher.
Table 1.Total Personal Income, by States and Regions, 1954-60
Table 2.Per Capita Personal Income, by States and Regions, 1950-60
State and region
United StalesNew England
Maine. __ _ _ . .New HampshireVermontMassachusettsRhode IslandConnecticut
Mideast\ew YorkNew .Jersey
Delaware _ _\I irvlandDistrict of Columbia
Great Lakes __ .Michigan _ ._OhioIndianaIllinoisWisconsin
PlainsMinnesotaIowaMissouriNorth DakotaSouth Dakota.. _ _ . _NebraskaKansas _ _ _ _ -
SoutheastVirginia _West VirginiaKentucky. _ _ _ .TennesseeNorth CarolinaSouth Carolina _GeorgiaFlorida. _ _ _AlabamaMississippiLouisianaArkansas
Southwest...OklahomaTexasNew MexicoArizona. _ _ _
Rocky Mountain _MontanaIdahoWyomingColoradoUtah
Far West..WashingtonOregonNevadaCalifornia
AlaskaHawaii
Table 1 (millions of dollars) Table 2 (dollars)
1954
285, 339
18, 8571,312
894543
0, 4031.5155, 190
73,23134 18911 62219 572
9065, 0841,858
64, 89414,12717,241
7, 62319 7516. 1 52
24,0845,1544,4897 055
783910
2, 2593, 434
43, 1485, 2562,4143, 0274, 0565 0232,4144,4145,3123,2581,8363 7561,782
19, 1363, 162
13, 3911,0881,495
6,1741,071
880537
2, 5431,143
35,8154, 9562,919
50827, 432
493893
1955
306, 598
20, 2001,452
952567
10, 0561. 6175, 556
78,01436", 50812,35120 706
1,0495,4531,947
70, 20815, 78518, 5898, 251
20 9686.615
24, 6835, 4504 2607 579
872861
2,2033, 458
47, 1545, 6032, 5863, 7824, 3475, 5352,6044,9186,0883,7082,0653,9851, 933
20,5133,341
14, 3801,1591,633
6,6701,158
917570
2, 7831,242
39, 1565,2113,139
58230, 224
500952
1956
330, 386
21, 6421, 5321,006
60610,719
1,6776, 102
84, 05839, 02313, 3792'> 410
1,2045 908 044
75, 34116, 58719.9018, 859
7, 137
26, 2005, 7684,5728,082
917926
2, 2943.641
50, 9716,0942,8784,0224,6525, 9022, 7115,2746,9793,9322,0974,4242,006
22, 1053,572
15, 4221, 2571,854
7,2851,2291,024
6143, 0641,354
42, 7785, 5023,398
60533, 273
5481, 024
1957
348,724
22 7931, 5901, 071
62811,346
1,6946, 464
88, 5S641, 19014, 20523, 525
1,2156, 3812, 070
78, 4B916, 92320, 906
9,21223, 941
7. 487
28,0996,1735, 1108,310
9391,0912, 6383, 838
53, 7906, 3863, 0824, 2034, 8645, 9762,8185, 4327,7634, 2062,1164,8842,060
23, 6973,730
16, 5561,4012,010
7, 8301,2801,072
6503,3671, 461
45, 4605,8323,400
64635, 582
5371,098
1958
357, 498
23, 3391, 6541, 097
64911,668
1, 7386, 533
90, 02942, 06114,40423, 5821 , 222G! 64 12, 119
77, 93916, 54020, 4949,123
24, 1007, 682
29, 5516, 4845, 2458, 6661,0491,1242, 7364,247
56, 1026, 6412,9744,3475, 0166, 3002,9315, 6768,4814,3822,2814,9292, 144
24, 8693,942
17, 1651, 5582,204
8,2071,3381,121
6883,5501, 510
47,4625,9773, 556
68837,241
5261,158
1959
380, 738
24, 7861,7241, 192
69412, 3871,8506, 939
95, 76645,01615.44124, 728
1,2857, 0962,200
83, 06517, 46921,9479,700
25, 6438, 306
30, 3726, 6585, 4099, 250
9761, 0202,7574, 302
59, 9957, 0413,0604,5645, 3486,7523,1576,0759,3984, 6022, 4935, 1452,360
26, 2374,117
18, 0331,6892,398
8,6301,3191, 186
7283,7761,621
51,8876,3503, 865
75740,915
5551,290
I1960 i
400, 002
26,0611. 8511, 263
13, 01 61,909
99, 98846, 92716, 25625, 700
1,3537, 4602, 292
86, 22518, 22522, 77810, 19226, 4258. 605
31,9417,0365,5319, 5221, 1041,2562, 9884, 504
62, 4807,3513,1094,7025,5227,1843,3416, 3499, 9384, 7852, 5575, 2452,397
27, 2004,312
18, 5081,7302,650
9, 1381,3681,205
7754,0791,711
54,8986, 6264,005
81943, 448
6291,442
1950
1,491
1,6291,1931,3161,1881, 6631,6521,900
1, 7591 , 8821,7901,5662,146
i 1,5802, 179
1, 6601,6821,6121, 5201,8261, 167
1,4111,3971,4491,4461 , 2681,2161,4721,380
1,0111,2341, 098
958995
1, 012882
1,0171,287
869733
1,087807
1,2881,1461, 3391, 1621, 295
1,4251,6001,2791,6231,4441,282
1,7881,6711,6001, 9381,839
2, 2311, 403
1951
1, 649
1, 8231,3001,4701,3281, 8451,8152, 200
1,9142, 0022, 0001 , 7342 285l] 7672, 344
1, 8721,8651,8671,6952, 0351, 697
1,5301,5331, 5541,5621,3221,4161, 5561,515
1,1271,3931,2211,1211,0801,1151,0461,1411,375
986793
1,173905
1,4191,2831,4531,2901,561
1,6431,7711,4461,8841,7201,458
1,9751,8161,7572,1832,037
2, 6291, 589
1952
1,727
1,9081,4271 , 5271,3961,9161, 8462, 322
1, 9942, 0792, 1 141,7952. 3951,8842,411
1, 9451,9461,9541, 7562, 0951, 760
1, 6071,5791,6251,6611,2321,2441,6701,715
1, 1941,4751,2901,2031,1321,1521,1171,2011,4571,044
8551,243
965
1,4991,4021, 5231,3451, 655
1,6991,7861, 5741,8281,7911,504
2,0681,9091, 8272, 3652,129
2,4871, 745
1953
1, 788
1, 9581,4311,5701,4341.9571, 8982.400
2, 0762.1472, 2161, 9022,5101,9672,276
2, 0532,1342, 0181,9132, 1971.784
1, 6141,6481,5591,7151,2461,3451, 6051,637
1,2371,4841,3071 , 2501,2181,1721, 1411,2391, 5351,084
8861,295
995
1,5291,476,549,361,610
,667,798
1,4991,8541,7141,526
2, 1031,9651,8082, 3572,165
2, 3871,782
1954
1,770
1, 9381,4311,6141,4481, 9361,8542, 351
2, 0512,1612,2141,8132. 4751,9242, 244
1,9692,0071, 9241,7872, 1741, 709
1,6561,6481,7061, 7051,2571, 3751, 7001, 691
1, 2321, 5091, 2531,2461, 2061,2001,0811,2091,5341,068
8831,3011,001
1,5531, 4661,5851,3881,604
1,6321,7471,4941,7901,6731,500
2,0891,9521,7672, 3632, 154
2,2721, 768
1955
1,866
2,0761. 5751,7121, 5282, 0851,9602, 489
2, 1532, 2702,3041,9152,7181,9522, 434
2,0942,1782, 0611,8922 2721,'804
1,6641,7101, 5871, 7951,3891,2791. 6201,662
1, 3231,5711,3561, 2971,2701,2851,1471,3321, 6591, 199
9941,3571,087
1,6151,5281,6451,4341,696
1,7011,8621,5181,8101,7581,556
2,2101,9811,8572, 4252,297
2,2831,789
1956
1,975
2,2141,6441,7741.6122, 2281 ! 9892,716
2 3022,4202, 4292, 0652, 9802, 1032, 644
2,2072 2292, ] 831,9852, 4401, 908
1, 7431. 7691,6821,9041 , 4581,3561, 6501,725
1,4021,6471, 5211,2851,3511,3481,1821,4021,7711,258
9891,4611,136
1,7021, 5951,7321,5271,816
1,7931,9021,6541,9131.8511,645
2,3262,0461,9692,4202,424
2,4911, S62
1957
2, 048
2 298l! 6861,8591, 6662, 3291, 9842, 813
2,4062, 5422, 5352, 1492, 8932, 2202, 668
2, 2602, 2452, 2532, 0292, 5051, 969
1, 8561,8631,8641,9511,4931,6001, 8921,809
1,4461,6711,6361,4291,4011,3451,2101,4181,8291,325
9921, 5651,148
1,7721,6411,8151,6101,806
1,8841,9341,6782,0121,9891,743
2,3972,1281,9602,5142,500
2,3971,916
1958
2, 064
2, 3021,7481,8781,7082, 3492, 0212, 720
2,4072. 5642, 4952, 1332, 8552, 2332,759
2,2002. 1632,1591, 9852,4511, 989
1,9541 , 9451,9212, 0441,6921, 6751,9771,984
1, 4851,7021,5821, 4531,4331,4161,2491,4691,8551,3601,0751,5601,209
1,8191,7361,8431,7231, 868
1,9652,0151,7382, 1372,1011,766
2,4302, 1482, 0502, 5862, 526
2,4691, 946
1959
2, 160
2, 3881,8001, 9801,7982, 4372,1662, 781
2, 5152, 7092, 5912, 2012, 9272, 3262, 868
2,3162, 2532, 2832,1012,5712, 122
1,9881,9711, 9702, 1581, 5571, 5021 , 9661, 990
1, 5661,7921, 6351,5141, 5081, 5001,3331,5571,9621,4201, 1531, 6051,327
1, 8831,7891,9081,8201,912
2,0291,9781,8022,2402, 1861,848
2,5702,2492,2012,7132,668
2,5462,118
I960 i
2, 223
2, 4711,9002, 0741,8592,5192, 2282, 863
2,5912, 7892, 6652, 2663, 0132, 3943, 008
2, 3732, 3222, 3392, 1792, 6132,171
2,0712, 0542, 0032, 1991, 7411,8422,1132, 068
1,6071,8481,6741, 5431, 5451, 5741,3971,6081,9881, 4621,1731, 6041,341
1,9121,8481, 9241,8062,011
2,1082,0181,7962, 3342, 3201,910
2,6432,3172, 2592,8442,741
2, 7352.274
1 Total includes Alaska and Hawaii in I960 but not in earlier years.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Tables 4-27.Persona! Income
[Millions of dollars]
Lino
1
234
4a56789
1011121314151617181920212223242526272829303132
3334353637
38
Item
Personal Income
Wage and salary disbursementsFarms. _ _ _Mining
AnthraciteBituminous and other soft coal mining._ ___Crude petroleum and natural gasMining a n d quarrying, except fuel _ _ _ _ _
Contract constructionManufacturingWholesale and retail trade __Finance, insurance, and real estate
Banking and other financeInsurance and real estate .
TransportationRailroads _ ._Highway freight and warehousingOther transportation
Communications and public utilitiesTelephone, telegraph, and other communi-
cationsElectric, gas and other public utilities
ServicesHotels and other lodging places _ _ _ _ _Personal services and private householdsBusiness and repair servicesAmusement and recreation _ - _Professional, social and related services
GovernmentFederal, civilianFederal, militaryState and local
Other industries
Other labor income
Proprietors' incomeFarm _Nonfarm
Property income
Transfer payments
Less: Personal contributions for social insurance.
Table 4. United States
1958
357, 498
237, 0632,8553,774
98942
1, 6911,043
14, 05876, 70143, 06010, 9054,4736,432
13,3625, 5603,9243,8787,397
4,0523,345
23, 8921,3456, 0423,9421,770
10, 79340, 48611,6417,482
21,363573
9,357
46,05213, 54832, 504
45,568
26,294
6,834
1959
380, 738
255, 8852,9173,834
83926
1,7581,067
15, 19684, 72046, 25511,7894,9366,853
14, 1835,5984, 4684.1177,743
4,2213,522
25, 9461,4406, 2454,5171,908
11,83642, 70311,979
7, 73722,987
599
10, 294
46,33311,31835, 015
48, 912
27, 208
7,893
I9602
400, 002
269, 1182, 9563, 832
68887
1,7121,165
15,61987,41149, 07312, 5515,3127, 239
14, 5775,4994,6584,4208,152
4, 4553,697
28, 1761, 5326,6265,0302,017
12,97146, 14412, 9048,078
25, 162627
10,891
48, 16311,97136, 192
52,015
29,049
9,238
Table 5. New England
1958
23, 339
15, 75211126
125
8216,2722,675
822287534546175218152478
268210
1,64078
386216
74885
2,303580466
1,25659
582
1,972218
1,754
3,491
1,960
417
1959
24, 786
17, 00611126
125
8706,9492,834
875312563567166239162495
274221
1,77982
396259
77965
2,441606484
1,35160
645
2,012135
1,877
3,620
1,995
493
1960
26, 061
17, 80610627
126
8927,1433,039
924330594578159249170517
286231
1,95785
42130882
1,0612, 565
647477
1,44158
680
2,161199
1,962
3,851
2,143
581
Table 6. Maine
1958
1,654
1,036241
154
3681733415195027158
33
1815828
2643
41208
5464908
31
2S677
159
230
151
31
1959
1,724
1,117241
166
3961873716215226179
351915909
2743
462226065978
3420132
16925015735
1960
1,8511,178
242
263
41519738172253251810362016981030
44
51244
6872
1059
37249
74174
26516441
Table 7.New Hampshire
1958
1,097736
Vs
1
139
301105271018249
104
251312708
1635
391364033621
25109
1495
1549219
1959
1,192811
61
142
340113301019248
115
251312768
1655
421524640651
27
11311
102
1689522
1960
1,263858
61
147
351124311120258
125
261312838
1765
471625239701
3012112
11017910127
Table 8. Vermont
1958
649401
166
624
127641669
231562
13
76
465
1112
2667169
42
15993565865912
1959 1960
694439
165
528
1467117
10241572
1376
486
1112
2970168
461
17
972671
946114
727
457176
630
1507518
102314
72
14
86
53622
3271166
491
181042876
100
6517
[Millions of dollars]
Line
1
2345689
101112131415161718192021222324252627
29303132
3334353637
38
Item
Personal Income
Wage and salary disbursementsFarmsMining
Bituminous and other soft coal miningCrude petroleum and natural gasMining and quarrying, except fuel
Contract constructionM anuf acturingWholesale and retail tradeFinance, insurance, and real estate
Banking and other financesInsurance and real estate .
Transportation _RailroadsHighway freight and warehousing -Other transportation
Communications and public utilitiesTelephone, telegraph, and other communica-
tionsElectric, gas