SCB_101989

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

October 1989 / Volume 69 Number10

SURVEY OF CURRENT BUSINESS

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the BUSINESS SITUATION

XXEAL GNP, a measure of U.S. pro-duction, increased at an annual rateof 2^2 percent in the third quarter,the same rate registered in the second(chart 1 and table 1). Although U.S.production increased at the same ratein the third quarter as in the second,two measures of U.S. demandgrossdomestic purchases and final sales todomestic purchasersincreased con-siderably more than in the secondquarter, reflecting a sharp drop in netexports. Prices increased less in thethird quarter than in the second3percent for the GNP price index (fol-lowing an increase of 5 percent) and2^2 percent for the price index for grossdomestic purchases (following an in-crease of 5x/2 percent).1

1. The regularly featured estimates of real GNP andGNP prices are based on 1982 weights. An alterna-

The effect of Hurricane Hugo.Despite the devastation caused by Hur-ricane Hugo when it battered SouthCarolina and North Carolina late inSeptember, the storm did not havesignificant quantifiable effects on thesize or composition of third-quarterGNP measured as the sum of expen-ditures. Personal consumption expen-ditures, investment, and governmentpurchases may have been affected, butthe impacts cannot be quantified from

tive measure of price change that uses more currentweightsthe chain price indexis published in table8.1 of the "Selected N3PA Tables." The GNP chain priceindex, which increased 3 percent in the third quarter af-ter a 5-percent increase in the second, can be used to cal-culate an alternative measure of real GNP growth basedon more current weights; this measure increased at an-nual rates of 3 percent in the third quarter and 2 per-cent in the second. Growth of real GNP in 1987 dollars,another measure based on more current weights, willbe published in the "Reconciliation and Other SpecialTables" in the November SURVEY OF CURRENT BUSINESS.

CHART 1

Looking Ahead...

Input-Output Accounts. The 1984 input-output table will be presented inthe November SURVEY; tables for 1985 and 1986 will be published in severalmonths. These annual accounts are prepared using basically the same pro-cedures as used in the 1977 benchmark tables, but with less comprehensiveand less reliable source data. The 1982 benchmark tables will be publishedin the SURVEY in the spring of 1990.

Gross Product by Industry. The presentation of revised and improvedestimates, of gross product by industry for 1977-88 has been delayed fromlate tiiis year to March 1990. Revised estimates for 1987 and 1988 andestimates for 1989 'will be presented in July 1990.

State Personal Income. A publication containing complete time series forState personal income estimates will be available from the U.S. GovernmentPrinting Office in mid-December. It contains annual estimates for 1929-87of total personal income, annual estimates for 1948-87 of disposable per-sonal income, and quarterly estimates for 1969-88 of total personal income.It also contains a statement of methodology. Order information will appearin the November SURVEY.

Local Area Personal Income. A five-volume publication containing an-nual estimates for 1982-87 of personal income and supporting detail formetropolitan areas and counties will be available from the U.S. GovernmentPrinting Office in mid-December. Each volume also contains a statement ofmethodology. For order information, see the inside back cover of this issueof the SURVEY.

Selected Measures:Change From Preceding Quarter

Percent10

5

0

-5

-10

10

-5

-10

10

10

REAL GNP

I..JHbnuREAL GROSS DOMESTIC PURCHASES

I ..jilLih.ilGNP PRICE INDEX (FIXED WEIGHTS)

0R0SS DOM&TIC PURCHASE PRICE INDEX(FIXED WEPTS)

19891986 1987 1988Note.Percent change at annual rate from preceding quarter;based on seasonally adjusted estimates.

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


SURVEY OF CURRENT BUSINESS October 1989

the source data BEA uses to estimatethese components. Similarly, in thefourth quarter most of the increasedexpenditures associated with recoveryfrom the storm will not be quantifiable.

The storm did have significant quan-tifiable effects on the composition, butnot the size, of GNP measured as thesum of incomes. On the income side,GNP is the sum of

Capital consumption allowanceswith capital consumption adjust-ment, including accidental dam-age to structures and equipment,

Certain nonfactor charges, such asindirect business taxes, and

National incomefactor charges(that is, employee compensation,profits, proprietors' income, rent,and interest) net of capital con-sumption.

Storm-related accidental damage tostructures and equipment increasedcapital consumption and reduced fac-tor charges. GNP was unaffected be-cause, in the estimates, the increase incapital consumption was offset by thereduction in factor charges.

BEA estimates the storm-relateddamage to structures and equipmentat $131/2 billion in constant dollars and$16 billion in current dollars (annualrates). These estimates are based onpreliminary information from an in-surance industry trade association andfrom the Federal Emergency Manage-ment Administration. The estimatesreflect adjustmentsbased on histor-ical relationships and news reportsto exclude damage to personal property

Table 1.Recent Patterns in Real GNP and Real Gross Domestic Purchases[Seasonally adjusted at annual rates]

Gross national product

Less' Exports . . . .Plus' Imports

Equals' Gross domestic purchases .

Less' Change in business inventories

Equals' Final sales to domestic purchasers.,

Billions of 1982 dollars

Level

1989:111

4,158.1

587.5661.6

4,232.1

30.2

4,201,9

Change from preceding quarter

1988

IV

26.7

19.518.3

25.6

-19.2

44.8

1989

I

37.4

18.3-.6

18.6

6.2

12.4

II

25.7

17.814.1

21.9

-5.4

27.4

III

25.6

022.9

48.4

11.1

37.2

Percent change from precedingquarter

1988

IV

2.7

15.512.6

2.5

4.5

1989

I

3.7

14.0-.4

1.8

1.2

II

2.5

13.19.3

2.1

2.7

III

2.5

015.1

4.7

3.6

NOTE.-Percent changes are found in table 8.1 of the "Selected NIPA Tables." Dollar levels are found in table 1.6.

and to include damage not covered byinsurance.

These very rough estimatescover only damage to structures andequipment owned by businesses (in-cluding damage to owner-occupiedresidences).2 Note, in particular, thatdamage to structures owned by gov-ernments (such as roads and bridges)is excluded because those structuresare treated as purchases on current ac-count and are, therefore, not capital-ized. (Damage to government-ownedstructures will also be excluded whenBEA prepares estimates of the effectof the earthquake that struck northernCalifornia in mid-October.)

2. Damage to personal property is reflected in re-duced personal consumption expenditures to the ex-tent that insurance benefits cover the damage. Specif-ically, personal consumption expenditures for casualtyinsurance are estimated on a net basispremiums mi-nus benefitsso increased benefits reduce personal con-sumption expenditures. In the context of current-dollarpersonal consumption expenditures in the neighborhoodof $31/(2 trillion, this effect was negligible in the case ofHurricane Hugo. Note that to the extent that damagedpersonal property is not insured, there is no effect onpersonal consumption expenditures or on GNP.

NOTE.Quarterly estimates in the national income and product accounts are expressed atseasonally adjusted annual rates, and quarterly changes in them are differences between theserates. Quarter-to-quarter percent changes are annualized. Real, or constant-dollar, estimatesare expressed in 1982 dollars. The advance GNP estimates for the third quarter were based onthe following major source data, some of which are subject to revision. (The number of monthsfor which 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 ofcapital goods (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), merchandise export and

import price indexes (3), and unit-value indexes for exports (1), for petroleum imports(2), and for nonpetroleum imports (1).

Net national product (NNP), anothermeasure of production, is GNP lesscapital consumption. NNP was af-fected by the hurricane because NNPreflects only the reduction in factorcharges. Real NNP increased1^ per-cent in the third quarter but wouldhave increased about 2 percent were itnot for the hurricane. Comparison ofthe $6T/2 billion increase in real NNPwith the $25^2 billion increase in realGNP implies that about $19 billion (or75 percent) of the GNP increase merelyoffset capital consumption (both acci-dental damage and the normal using-up of capital in production).

Three types of factor charges wereaffected: Rental income of persons,proprietors' income, and corporateprofits. These incomes are not avail-able in constant dollars in the nationalincome and product accounts; the esti-mates reported in the following para-graphs are in current dollars and areexpressed at annual rates.

The difference between capital con-sumption attributable to accidentaldamage, on the one hand, and insur-ance benefits, on the other, reducedrental income of persons about $3 bil-lion, proprietors' income about $x/2 bil-lion, and corporate profits about $lx/2billion. In addition, benefits paid by in-surance companies reduced their prof-its by $12 billion for a total effect oncorporate profits of $131/2 billion.

The reductions in rental income ofpersons and in proprietors' income, to-gether with about $^2 billion in wagesand salaries lost because of the storm,caused personal income to be roughly$4 billion lower than it would havebeen if the hurricane had not struck.Estimates of the level of national in-come that reflect the effects of thehurricane will be released next monthwhen source data for corporate profitsbecome available.


October 1989 SURVEY OF CURRENT BUSINESS

Components of Real GNPAlthough real GNP increased at the

same rate in the third quarter as inthe second, among the major compo-nents of GNP, only fixed investmentregistered roughly similar changes inthe two quarters. Personal consump-tion expenditures and inventory in-vestment, which had added a total of$7 billion to the second-quarter changein GNP, added $481/2 billion to thethird-quarter change. Net exportsand government purchases, which hadadded a total of $141/2 billion in the sec-ond quarter, subtracted $27x/2 billionfrom the third-quarter change.

Personal consumption expendituresReal personal consumption expendi-

tures (PCE) increased 6 percent in the

third quarter, after increasing 2 per-cent in the second (table 2). (Thethird-quarter increase was the largestsince the first quarter of 1988, whenPCE also increased 6 percent.) Allthree major components contributed tothe acceleration. Durables increasedmuch more sharply than in the sec-ond quarter; nondurables increased af-ter a second-quarter decline; and ser-vices increased slightly more than inthe second quarter.

The third-quarter strength in PCEwas consistent with most factors usu-ally associated with consumer spend-ing. Real disposable personal incomeincreased 4 percent or more in three ofthe past four quarters. Consumer con-fidence (as measured by the Index ofConsumer Sentiment prepared by theUniversity of Michigan's SURVEY Re-search Center) increased in the third

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

Personal consumption expenditures

DurablesMotor vehicles and partsFurniture and household equipmentOther durables

Nondurables .FoodClothing and shoes .Energy1Other nondurables , . .

Services .'.HousingHousehold operation..,,

Energy2Other

TransportationMedical care ,Other services

Billions of 1982 dollarsLevel

1989:111

2,691.2

440.0192.0177.170.9

918.6463,3172.5120.7162.2

1,332.5373.1163.679.983.798.9

297.4399.5


1988

IV

19.6

9.84.42.72.6

1.7.2.5

2.1-1.2

8.21.2-.6-.701.04.02.5

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

m

37.5

15.115.0-1.4

1.5

8.91.96.7_ 2

.7

13.51.4-.8

-1.5.8

1.84.36.8


1988

IV

3.0

9.910.46.7

15.9

.7

.21.27.0

-2.9

2.61.3

-1.4-3.3

04.35.82.7

1989

I

2.0

-1.1-9.617.2

-17.6

1.33.41.0

-9.94,8

3.61.8

-5.4-11.9

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

HI

5.8

15.038.5-3.1

8.9

4.01.7

17.2-.71.7

4.21.5

-1.9-7.2

3.97.66.07.1

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. Dollars levels are found in table 2.3.

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

Gross private domestic fixed investment

Nonresidential .Structures

Nonresidential buildings excluding farms ..Public utilities Mining exploration, shafts, and wellsOther .

Producers' durable equipmentInformation processing and related equipment ...

T ansDortation and related eauiomentOther

Single-family structures Multifamily structuresOther


Level

1989:111

705.0

518.0119.877.023.814.24.8

398.2189.475.865.467.6

187.088.219.479.5


1988

rv

-5.3

-8.3-1.6-1.2

1.2-2.3

.7

-6.7-6.4

2.5-2.0-.8

3.02.6.1.2

1989I

5.8

8.3_ ql'.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

-1.44.11.8

-6.3-7.2

.3

.6

in

4,3

6.61.7.4

-.21.1.3

5.0.3

2.3.6

1.9

2.3-2.9-.41.1


1988

IV

-3.0

-6.5-5.1-5.922.6

-43.5111.5

-6.9-13.6

15.2-11.5-5.0

6.311.42.11.0

1989

I

3.4

6.9-1.0

9.05.1

-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

HI

2.5

5.35.92.1

-3.338.124.55.2

.613.13.8

12.1

-4.8-12.1-7.8

5.7

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.

quarter after declining in the second.The inflation rate slowed, and the un-employment rate remained very low.

Expenditures for durable goods in-creased 15 percent in the third quar-ter after increasing 5x/2 percent in thesecond. Most of the third-quarter step-up was in new cars, which increasedsharply after a small increase. Con-sumers' purchases of trucks and recre-ational vehicles increased sharply inthe third quarter after declining inthe second. Both car and truck pur-chases were stimulated by sales incen-tive programs offered by nearly all do-mestic (and many foreign) manufactur-ers. The programsamong the mostattractive in 3 yearsprovided rebatesor below-market financing on nearly all1989 models.

Expenditures for nondurable goodsincreased 4 percent in the third quar-ter after declining 2^2 percent in thesecond. Clothing and shoes increasedsharply, following a small increase; thethird-quarter increase may reflect, inpart, consumers' reactions to a down-swing in prices. Food rebounded afteran abnormally steep decline in the sec-ond quarter.

Expenditures for services increaseda little more than 4 percent in thethird quarter after increasing a lit-tle less than 4 percent in the sec-ond. Transportation and "other ser-vices" increased more in the third quar-ter than in the second; the third-quarter acceleration in transportationreflected, in part, enhanced discountson airline tickets. A decline in house-hold operation was more than ac-counted for by electricity and gas, re-flecting the cooler-than-normal sum-mer weather that limited the need forair-conditioning.

Nonresidential fixed investmentReal nonresidential fixed investment

increased 5x/2 percent in the third quar-ter, following an 8^2-percent increasein the second (table 3). Structures andproducers' durable equipment (PDE)both contributed to the third-quarterincrease. Structures increased 6 per-cent after declining 91/2 percent, andPDE increased 5 percent after increas-ing 15 percent.

Almost three-fourths of the increasein structures was accounted for byoil well drilling; despite the increase,however, oil well drilling remainedvery low. Construction of commer-cial buildings, which had accountedfor most of the second-quarter de-cline in structures, changed little. In



PDE, industrial equipment reboundedfrom a second-quarter decline and ac-counted for about one-half of the third-quarter increase; information pro-cessing equipment and transportationequipment both registered only smallincreases in the third quarter aftersubstantial increases in the second.

Many factors point to restrained cap-ital spending in the near future: Cor-porate profits and cash flow were weakin the first half of the year; increasesin real final sales (excluding inventorytransactions of the Commodity CreditCorporation) have been modest; capac-ity utilization in manufacturing, al-though still rather high, edged down inthe second and third quarters; and con-tracts and orders for plant and equip-ment, as well as manufacturers' neworders for nondefense capital goods,have been flat since late in 1988. In-terest rates are one of the few factorspointing 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 thirdquarter.

Residential investmentReal residential investment declined

5 percent in the third quarter, follow-ing a 12 ^ 2-percent decline in the sec-ond. Both single-family and multifam-ily construction declined in the thirdquarter; the "other" component (whichincludes additions and alterations, ma-jor replacements, mobile home sales,and brokers' commissions on sales ofresidences) increased.

Single-family construction declined12 percent in the third quarter, follow-ing a much sharper decline in the sec-ond. A second-quarter drop of 77,000(seasonally adjusted annual rate) instarts of single-family units affectedsingle-family construction put in placein both the second and third quarters(chart 2). Multifamily construction de-clined 8 percent in the third quarter af-ter four consecutive quarters of smallincreases; the third-quarter slippageoccurred despite a declining rental va-cancy rate. (The rental vacancy ratewas 7.3 percent in the third quarter of1989, compared with 7.8 percent in thethird quarter of 1988.)

The 5^-percent increase in the"other" component was largely ac-counted for by an increase in brokers'commissions. Sales of new and exist-ing houses increased 160,000 (season-ally adjusted annual rate) in the thirdquarter as mortgage interest rates de-clined (chart 3).

Inventory investment

Real inventory investmentthat is,the change in business inventoriesincreased $11 billion in the third quar-ter, as businesses added $30 billion totheir inventories after adding $19 bil-lion in the second quarter (table 4). Incontrast, inventory investment had de-creased $5^2 billion in the second quar-ter. The upswing in inventory invest-ment was largely in farm inventories.

Farm inventories increased $5x/2 bil-lion in the third quarter, followinga $x/2 billion decrease in the second.These changeswhich occurred in thecontext of rising market sales by farm-ers and continued weakness in farmoutputlargely reflected the patternof transactions with the CommodityCredit Corporation (CCC) under thecommodity loan program. In the sec-ond quarter, a swing in transactions

with the CCC from net withdrawalsto net placements and the increase inmarket sales both led to a downswingin inventories held by farmers. In thethird quarter, when net withdrawals ofcrops from CCC inventories resumed,both market sales and inventories heldby farmers increased.

Nonfarm inventories increased$24]/2 billion in the third quarter,following a $191/2 billion increase inthe second. The step-up was ac-counted for by manufacturing andwholesale trade inventories; a down-swing in retail trade inventories wasmore than accounted for by auto deal-ers. Nonfarm inventories exclud-ing those held by auto dealers wereup $36 billion in the third quar-ter, considerably more than in thesecond.

The accumulation in manufactur-ing inventories jumped to $18x/2 bil-

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

Change in business inventories

Farm . . . .

Nonfarm . . . . . . .ManufacturingWholesale tradeRetail trade

Auto dealersOther retail trade < ,

Other

Addendum:Nonfarm less auto dealers

Level

1988

III

37.5

.3

37.25.89.8

13.38.64.78.3

28.6

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

II

19.1

-.5

19.58.34.52.6

-3.05.64.1

22.6

m

30.2

5.5

24.618.48.0

-5.9-11.5

5.64.2

36.1


1988

IV

-19.2

-13.9

-5.36.4

-7.9-1.7-2.0

.3-2.1

-3.3

1989

I

6.2

21.2

-15.0-8.4-4.3-3.2

2.4-5.6

.9

-17.4

II

-5.4

-8.1

2.64.56.9

-5.8-12.0

6.2-3.0

14.7

III

11.1

6.0

5.110.13.5

-8.5-8.5

0.1

13.5

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

CHART 2Housing Starts

Million of units2.5

2.0

1.5

1.0

0.5

Total

~~"Multifamily

1985 1986 1987 1988Seasonally Adjusted at Annual Rates


1989



lion in the third quarter from $8^2billion in the second. Inventories ofdurable goods accounted for two-thirdsof the third-quarter accumulation; thelargest accumulation was in trans-portation equipment, although inven-

tories of fabricated metals and elec-trical machinery also registered siz-able increases. Inventories of non-durable goods increased substantiallyfor the second quarter in a row.The two-quarter accumulations were

Table 5.Real Net Exports of Goods and Services' [Seasonally adjusted at annual rates]

Net exports of goods and servicesExports . .

Merchandise. . .AgricultureNonagriculture

Services . .Imports

Merchandise ,PetroleumNonpetroleum ,

Services....


1989:111

-74.1

587.5391.137.4

353.8196.4

661.6509.699.3

410.3152.0

Change from preceding quarter1988

IV

1.1

19.514.50

14.45.0

18.315.13.9

11.23.4

1989I

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

III

-22.9

04.2

-3.37.6

-4.2

22.922.17.7

14.4.9


1988

IV

15.518.00

20.111.1

12.613.519.312.310.2

1989

I

14.016.450.613.19.4

-.4-4.9

-10.2-3.615.8

II

13.116.46.1

17.77.1

9.38.7

17.96.7

11.0

III

04.4

-28.79.1

-8.1

15.119.438.115.42.4

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

Table 6.Real Government Purchases of Goods and Services[Seasonally adjusted at annual rates]

Government purchases of goods and services

Federal . . .

Nondefense .Other .

State and localStructuresOther . .. . ..


1989:111

805.7

335.9258.277.7-6.984.6

469.957.7

412.2


1988

IV

30.5

24.12.8

21.317.93.4

6.43.33.0

1989

I

-6.7

-8.4-7.2-1.2-1.1-.1

1.7-1.3

3.0

II

10.6

8.11.46.76.4.3

2.5-.53.3

ffl

-4.6

-7.72.4

-10.1-10.0

-.1

3.2.2

3.3


1988

IV

16.7

33.74.4

231.3

17.9

5.725.73.0

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

3.3

m

-2.3

-8.73.8

-38.7

-.5

2.81.43.3

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.

CHART 3Selected Interest Rates

Percent15

13

11

1985 1986

Data: FRB, FLHLMC.


1987 1988 1989

widespread; the largest were in chemi-cals and allied products, petroleum andcoal products, and "other" nondurablegoods.

Wholesale trade inventories in-creased more in the third quarter thanin the second. Inventories of mer-chant wholesalers of durable goodsprimarily of machinery, equipment,and supplieswere up strongly inboth quarters. Inventories of mer-chant wholesalers of nondurable goodschanged little after a decline.

Retail trade inventories decreased inthe third quarter after increasing inthe second. Auto dealers' inventoriesfell $H1/2 billion after decreasing $3billion; the third-quarter liquidationcame about as a result of the more at-tractive sales incentive programs dis-cussed earlier. Other retail inventorieswere up about the same amount in thethird quarter as in the second.

Reflecting the third-quarter changesin inventories and in final sales bybusiness, the constant-dollar ratio oftotal inventories to total final salesedged up to 3.05. The ratio has beenin the range of 3.04 to 3.07 since thefirst quarter of 1988; these ratios ar^below those registered at any time inthe past 20 years.

Net exports

Real net exports declined $23 bil-lion in the third quarter, following a$4 billion increase in the second (ta-ble 5). Merchandise imports increasedsharply and, together with a smallrise in imports of services, fully ac-counted for the third-quarter move-ment; a modest increase in merchan-dise exports was offset by a decline inexports of services.

Merchandise exports increased $4billion (or 4^2 percent) in the thirdquarter after increasing $14^2 billion(or 16^2 percent) in the second. Agri-cultural exports declined; nonagricul-tural exports increased, but only aboutone-half as much as in the second quar-ter, and at the lowest rate since thesecond quarter of 1988. Weakness wasevident in all major end-use categoriesother than capital goods (except autos),which increased $7^2 billion.

Merchandise imports increased $22billion (or 19^2 percent) in the thirdquarter after increasing $10 billion(or 8x/2 percent) in the second. Bothpetroleum and nonpetroleum importscontributed to the third-quarter in-crease. Within nonpetroleum imports,capital goods (except autos) registered



the largest increase; all other end-usecategories registered modest increasesexcept for autos and "other," both ofwhich declined slightly.

Exports of services declined $4 bil-lion after a $3 ^ 2 billion increase, andimports of services increased $1 billionafter a $4 billion increase. In bothcases, the movements were dominatedby downswings in investment incomesthat reflected declining interest rates.

Government purchasesReal government purchases de-

creased $4x/2 billion (or 2x/2 percent)in the third quarter, following an in-crease of $101/2 billion (or 5x/2 percent)in the second (table 6). The turnaboutreflected the pattern of change in in-ventories of farm products held by theCCC. Both Federal defense purchasesand State and local government pur-chases increased slightly more in thethird quarter than in the second.

The level of inventories held bythe CCC decreased $7 billion in thethird quarter, largely reflecting netwithdrawal of cropsmainly cottonand wheatunder the commodity loanprogram.

Federal defense purchases increased$2x/2 billion in the third quarter,somewhat more than in the second.The third-quarter increase was spreadacross all types of defense purchasesother than nondurables. Nondefensepurchases excluding CCC inventorytransactions changed little after in-creasing slightly.

Table 7.Price Indexes (Fixed Weights): ChangeFrom Preceding Quarter

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

GNP

Less' ExportsPlus' Imports .

Equals: Gross domestic purchases

Less' Change in business inventories

Equals: Final sales to domesticpurchasers

Personal consumption expendituresFood

Other personal consumption

Nonresidential structuresProducers' durable equipment .

Government ourchases

Addenda:

Petroleum and productsOther merchandise

1988

IV

4.3

2.44.2

4.5

4.5

4.94.6

.4

5.44.54.82.63.5

27-337

8.1

I

4.8

1.68.6

5.5

5.5

4.85.64.7

4.65.34.45.88.0

11 11138

2.6

1989

II

5.0

2.55.7

5.4

5.3

6.37.8

31.5

3.94.22.27.23.3

6.799.4-2.6

m

2.9

-.6-3.8

2.6

2.6

2.32.7

-9.2

3.24.02.34.13.3

-6.8-28.9-2.9

Within State and local governmentpurchases, structures changed little inthe third quarter, following a declinein the second. Purchases other thanstructures increased at the same rateas in the second quarter.

Prices

Inflation slowed in the third quar-ter, following several quarters in whichprice increases had been in the range of4^2 to 5^2 percent. GNP prices were up3 percent after a 5-percent increase inthe second quarter, and gross domes-tic purchases prices were up 2x/2 per-cent after a S^-percent increase (table7). The slowdown was most evident inPCE prices, especially in food and en-ergy prices.

PCE prices increased 2^2 percentin the third quarter, following a 6^2-percent increase in the second. Foodprices slowed sharply, to a 2 ^ 2-percentincrease. The slowdown was largely

in meat prices, where increases moder-ated after substantial gains in the twopreceding quarters; also, prices of freshfruits and vegetables increased moder-ately after a sizable increase. Energyprices declined 9 percent after surg-ing 31^2 percent. The sharp move-ments were largely traceable to pricesof gasoline and oil; prices of electric-ity and gas registered a small declinein the third quarter after little changein the second. The increase in "other"PCE prices slowed for the third consec-utive quarter; the third-quarter slow-down was largely due to a sharp down-swing in prices of clothing and shoes.Prices of nonenergy services, which ac-count for nearly one-half of PCE, in-creased 4x/2 percent in the third quar-ter after increasing 4 percent in thesecond.

Among other components of finalsales, prices of nonresidential fixed in-vestment again increased 3 percent, asprices of both structures and PDE in-creased at about the same rate in thethird quarter as in the second. Prices

Table 8.Personal Income and Its Disposition[Billions of dollars; seasonally adjusted at annual rates]

Wage and salary disbursementsCommodity-producing industries

Manufacturing ,Other .

Distributive industries. ..Service industriesGovernment and government enterprises .

Other labor income

Proprietors' income ,FarmNonfarm

Rental income of personsPersonal dividend income .Personal interest income , .

Transfer payments

Less: Personal contributions for social insurance

Personal income . .

Less' Personal tax and nontax paymentsImpact of the Tax Reform Act of 1986 lOther

Equals: Disposable personal income

Less' Personal outlays .

Equals: Personal saving 4

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 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, the initial premiums under the

medical catastrophic coverage, and an increase in the premium forsupplementary medical insurance , ,

Level

1989:111

2,653.3742.0555.5186.5619.6811.5480.2

250.7

345.437.2

308.2

4.8113.2669.2

635.5

215.5

4,456.5

646.6

3,809.8

3,613.8

196.0


1988

IV

52.913.110.92.29.5

23.76.7

5.4

1.3577.0

-.22.8

22.3

6.4

3.2

87.6

11.9-.4

12.3

75.7

61.9

13.8

.3

14.2

-.3

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

42.3

4.4

-1.7

1.211.8

6.1

n

48.17.23.63.5

12.022.46.6

4.7

3i3.9

-2.02.0

26.1

10.4

3.0

82.5

24.39.6

14.7

58.2

63.2

-5.0

.3

-4.7

.1

III

44.58.35.62.78.8

20.76.7

4.7

-10.1-14.1

4.0

-5.01.8

14.1

8.7

2.5

56.2

-6.0-16.1

10.1

62.1

66.8

-4.7

.2

-8.2

-.6

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.

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. Hurricane Hugo's impact on several components of personal income is discussed near the beginning of the "Business Situation."NOTE.Most dollar levels are found in table 2.1 of the "Selected NIPA Tables."



of residential structures were up some-what less than in the second quarter,and prices of government purchasesincreased at the same rate in bothquarters.

Prices of exports and imports bothdeclined after increases in the secondquarter. A sharp downswing in pricesof merchandise imports, following twoquarters of substantial increases, wastraceable to petroleum. Petroleumprices, which had jumped 114 percentin the first quarter and 99^2 percentin the second, dropped 29 percent inthe third. Prices of "other" merchan-dise imports declined 3 percent in thethird quarter, following a similar de-cline in the second. The two-quarterdropoff in these prices included all ofthe major end-use categories of importsexcept for consumer goods.

Personal IncomePersonal income increased $56 bil-

lion in the third quarter, following an$82*/2 billion increase in the second(chart 4 and table 8). Personal interestincome and farm proprietors' incomewere responsible for much of the de-celeration, but nearly all of the majorcomponents contributed. Reflecting aswing from a large increase to a smalldecrease in personal tax and nontaxpayments, disposable personal incomeincreased more in the third quarterthan in the second.

Wage and salary disbursementswere up $44x/2 billion in the third quar-ter, $3x/2 billion less than in the sec-ond. Among the major private indus-try components, wages and salaries inthe distributive industries were up $3billion less than in the second quarter;about one-half of this deceleration wasaccounted for by strikes in the telecom-munications industry.

Farm proprietors' income decreased$14 billion in the third quarter, follow-ing a decrease of $7^2 billion in the sec-ond. Federal agricultural subsidies de-

clined in both quarters$8 billion inthe third, $4x/2 billion in the second.Farm income excluding subsidies alsodeclined in both quarters$6 billionin the third, $3 billion in the second.The third-quarter decline in farm in-come excluding subsidies was largelydue to lower crop prices; the second-HOHBHHMHHHnH CHART 4

Selected Personal Incomeand Saving Measures

Billion $150

PERSONAL SAVING RATE

1986 1987 1988 1989Based on Seasonally Adjusted Annual Rates

Note.Changes are from preceding quarter.U.S. Department of Commerce, Bureau of Economic Analysis

quarter drop had reflected lower farmproduction.

Personal interest income increased$14 billion in the third quarter, sub-stantially less than in the past severalquarters. The slowdown reflected de-clines in interest rates.

Rental income of persons declined$5 billion, the fourth consecutive quar-terly drop. As noted earlier, rental in-come was reduced about $3 billion byHurricane Hugo. Among the remain-ing components of personal income, in-creases in other labor income, personaldividend income, and nonfarm propri-etors' income were similar to those inthe second quarter. Transfer paymentsincreased $8^2 billion in the third quar-ter, somewhat less than in the second.Personal contributions for social insur-ance, which are subtracted in derivingthe personal income total, increasedabout the same in both quarters.

Personal tax and nontax paymentsdecreased $6 billion in the third quar-ter, following a $24^2 billion increasein the second. The downswing mainlyreflected the effects of the Tax Re-form Act of 1986: Net settlementsdropped sharply in the third quarterafter a substantial second-quarter in-crease that was related to paymentson income that had been deferred fromearlier periods.

Disposable personal income (DPI) in-creased $62 billion (or 7 percent) in thethird quarter, compared with a $58 bil-lion (or 6 ^ -percent) increase in the sec-ond. Real DPI increased 5 percent, fol-lowing an increase of 1 percent, as themodest acceleration in current-dollarDPI was augmented by the sharp slow-down in PCE prices.

Personal outlayslargely PCEincreased almost $67 billion in thethird quarter, $3^2 billion more than inthe second. The larger increase in out-lays than in current-dollar DPI led toa $4x/2 billion decrease in personal sav-ing. The personal saving rate declined0.3 percentage point to 5.1 percent inthe third quarter.


8 SURVEY OF CURRENT BUSINESS October 1989

ErrataNational Income and Product Accounts

This table shows corrections to annual current-dollar estimates and im-plicit price deflators for durable and nondurable goods gross national prod-uct and final sales and to annual current-dollar estimates for durable andnondurable goods exports of merchandise published in the July, August,and September 1989 issues of the SURVEY OF CURRENT BUSINESS. The errorsin durables and nondurables were offsetting; total gross national product,total final sales, and total merchandise exports were not affected. The cor-responding quarterly estimates and constant-dollar estimates were alsonot affected.

Line1986

Published Corrected

1987

Published Corrected

1988

Published Corrected

Table 1.3.Gross National Product by Major Type of Product

Durable goods

Nondurable goods.Final sales

781011

721.8720696499592

724.27230962.5956.8

774.37522

1,01091,0037

777.5755.5

1,007.61,000.4

859.18341

1,072.81,067.2

863.78386

1,068.31,062 6

Table 4,1.Foreign Transactions in the National Income and Product Accounts

Exports of merchandise:

Nondurable goods45

140384.1

142.781.7

1585966

161 893.3

2022119.7

20681152

Table 7.5.--Implicit Price Deflators for Gross National Product by Major Type of Product

Durable goodsFinal sales

Nondurable goodsFinal sales

781011

100.31003110.5110.4

100.7100.6110.2110.2

98.097.6

115.0114.7

98.498.0

114.7114.4

97.296.9

120.8120.9

97.797.4

120.3120.4

Statistical conventions used for NIPA estimatesMost of the estimates are presented in billions of dol-

lars. The major exceptions are certain current-dollar an-nual estimates, which are presented in millions of dollars,and estimates presented as index numbers. Current-dollar estimates are valued in the prices of the periodin which the transaction takes place. Constant-dollar es-timates are valued in the prices of a period designatedthe base period (at present, 1982), thus removing pricechange from any period-to-period movement in the se-ries. The designation of 1982 as the base period alsomeans that price levels in 1982 are set equal to 100 incalculating price indexes and implicit price deflators.

For quarters and months, the estimates (except priceindexes) are presented at annual rates. Annual ratesshow values for a quarter or a month at their annualequivalent (that is, the value that would be registeredif the rate of activity measured for a month or a quar-ter were maintained for a full year). Annual rates makeit easier to compare values for time periods of differentlengthsfor example, quarters and years.

The percent changes shown in table 8.1 are also at an-nual rates and are calculated from the published quar-

terly estimates, which are rounded to the nearest one-tenth of a billion dollars. The annual rates for quarterlypercent changes are calculated with the formula:

r =Qt

Qt - 1 x 100,

where r = the percent change at an annual rate, and Qtand Qt-i = the quarterly estimates for a quarter and thepreceding quarter, respectively.

Quarterly and monthly NIPA estimates are season-ally adjusted, if necessary. Seasonal adjustment removesfrom the time series the average impact of variations thatnormally occur at about the same time and in about thesame magnitude each yearfor example, weather, holi-days, and tax payment dates. The statistical proceduresused are based on historical experience; the Census Bu-reau's X-ll program is widely used. After seasonal ad-justment, cyclical and other short-term changes in theeconomy stand out more clearly.



National Income and Product Accounts TablesSelected NIPA Tables

New estimates in this issue: Third 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 productPersonal consumption expenditures "...

Durable aoodsNondurable goodsServices 1

Gross private domestic investmentFixed investment

NonresidentialStructuresProducers' durable equipment

ResidentialChange in business inventories

NonfarmFarm

Net exports of goods and services l

Exports 'Imports '

Government purchases of goods andservicesFederal

National defenseNondefense

State and local

1987

4,524.33,010.8

421.0998.1

1,591.7699.9670.6444.3133.8310.5226.4

29.330.5-1.3

-112.6448.6561.2

926.1381.6294.8

86.8544.5

1988

4,880.63,235.1

455.21,052.31,727.6

750.3719.6487.2140.3346.8232.4

30.634.2-3.6

-73.7547.7621.3

968.9381.3298.083.3

587.6

Seasonally adjusted at annual rates1988

II

4,838.53,204.9

454.61,042.41,707.9

748.4719.1487.1139.9347.2232.129.330.4-1.1

-74.9532.5607.5

960.1377.1298.079.1

583.0

III

4,926.93,263.4

452.51,066.21,744.7771.1

726.5493.2142.0351.3233.244.641.53.1

-66.2556.8623.0

958.6367.5296.171.4

591.0

IV

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

1,011.4406.4300.5105.9604.9

1989

I

5,113.13,381.4

466.41,098.31,816.7

769.6742.0503.1144.7358.5238.8

27.719.18.6

-54.0605.6659.6

1,016.0399.0298.7100.4617.0

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

1,033.2406.0301.3104.7627.2

III

5,273.23,509.5

490.41,128.91,890.1

791.0755.8521.2145.4375.8234.6

35.127.67.5

-67.7618.6686.3

1,040.5403.1306.296.8

637.4

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]

Gross national productFinal salesChange in business inventories

Goods .. . .Final sales .Change in business inventories

Durable goodsFinal sales .Change in business inventories

Nondurable goodsFinal salesChange in business inventories

ServicesStructures

1987

4,524.34,495.0

29.31,785.21,755.9

29.3777.5755.5

22.11,007.61,000.4

7.22,304.5

434.6

1988

4,880.64,850.0

30.61,931.91,901.3

30.6863.7838.625.0

1,068.31,062.6

5.62,499.2

449.5


II

4,838.54,809.2

29.31,917.41,888.1

29.3857.2840.2

17.01.060.21,047.9

12.32,472.3

448.8

III

4,926.94,882.3

44.61,955.81,911.2

44.6884.0842.641.4

1,071.81,068.6

3.22,520.3

450.8

IV

5,017.34,998.7

18.71,987.41,968.7

18.7888.5856.532.0

1,098.91,112.2-13.3

2,570.0459.9

1989

I

5,113.15,085.4

27.72,030.92,003.2

27.7894.7872.822.0

1,136.21,130.5

5.72,620.8

461.3

II

5,201.75,174.3

27.42,079.12,051.7

27.4905.2899.2

6.01,173.91,152.5

21.4

2,667.5455.1

III

5,273.25,238.1

35.12,102.72,067.6

35.1935.4924.9

10.51,167.41,142.8

24.62,711.1

459.4

Gross national productPersonal consumption expenditures 1...

Durable goodsNondurable goodsServices J

Gross private domestic investmentFixed investment

NonresidentialStructuresProducers' durable equipment

ResidentialChange in business inventories

NonfarmFarm ,

Net exports of goods and services 'Exports 'Imports * . . . .

Government purchases of goods andservicesFederal

National defenseNondefense

State and local

1987

3,853.72,513.7

389.6890.4

1,233.7674.0650.3455.5122.3333.2194.823.725.8-2.1

-115.7450.9566.6

781.8339.6265.274.4

442.1

1988

4,024.42,598.4

413.6904.5

1,280.2715.8687.9493.8122.2371.6194.127.930.7-2.8

-74.9530.1605.0

785.1328.9261.5

67.4456.2


n

4,010.72,586.8

414.8899.2

1,272.8713.5692.0497.8122.5375.3194.221.525.4-4.0

-72.6519.7592.3

783.0327.9262.565.4

455.1

m

4,042.72,608.1

410.7910.3

1,287.0733.6696.1501.0123.0378.0195.137.537.2

.3-74.9531.9606.9

775.9319.8258.8

61.0456.1

IV

4,069.42,627.7

420.5912.0

1,295.2709.1690.8492.7121.4371.3198.1' 18.3

31.9-13.6-73.8551.4625.2

806.4343.9261.6

82.3462.5

1989

I

4,106.82,641.0

419.3915.0

1,306.7721.1

696.6501.0121.1379.9195.624.516.97.6

-55.0569.7624.6

799.7335.5254.4

81.1464.2

. II

4,132.52,653.7

424.9909.7

1,319.0719.8700.7511.4118.1393.2189.319.119.5

5

-51.2587.5638.7

810.3343.6255.8

87.8466.7

m

4,158.12,691.2

440.0918.6

1,332.5735.2705.0518.0119.8398.2187.030.224.65.5

-74.1587.5661.6

805.7335.9258.277.7

469.9

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]

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

Gross national productFinal salesChange in business inventories

GoodsFinal sales .Change in business inventories

Durable goods .Final sales .Change in business inventories

Nondurable goodsFinal sales .....Change in business inventories

ServicesStructures

1987

3,853.73,830.0

23.71,669.01,645.3

23.7790.2770.6

19.6878.8874.7

4.11,803.7

381.1

1988

4,024.43,996.5

27.91,771.61,743.7

27.9883.6860.922.7

888.0882.8

5.21,873.5

379.3


II

4,010.73,989.2

21.51,767.91,746.5

21.5882.2866.8

15.3885.8879.7

6.11,862.5

380.2

III

4,042.74,005.2

37.51,782.31,744.8

37.5900.8863.437.3

881.5881.4

.11,880.8

379.6

IV

4,069.44,051.0

18.31,789.41,771.0

18.3900.5872.428.1

888.9898.6-9.7

1,896.7383.3

1989

I

4,106.84,082.3

24.51,823.21,798.7

24.5902.3884.2

18.1920.9914.5

6.41,905.1

378.5

II

4,132.54,113.5

19.11,843.91,824.8

19.1913.0908.0

5.0930.9916.8

14.11,919.9

368.8

III

4,158.14,127.9

30.21,857.61,827.4

30.2935.3926.6

8.8922.2900.821.4

1,931.6368.9

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


10 SURVEY OF CURRENT BUSINESS October 1989Table 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

1987

4,524.3448.6561.2

4,636.829.3

4,607.6

1988

4,880.6547.7621.3

4,954.330.6

4,923.7


II

4,838.5532.5607.5

4,913.429.3

4,884.1

III

4,926.9556.8623.0

4,993.144.6

4,948.5

IV

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

in

5,273.2618.6686.3

5,340.935.1

5,305.8

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

Business .. .. . ..Nonfarm ,

Nonfarm less housingHousing

FarmStatistical discrepancy

Households and institutionsPrivate householdsNonprofit institutions

GovernmentFederalState and local . .

Rest of the worldAddendum:

Gross domestic business product lesshousing

1987

4,524.34,493.83,851.53,779.53,407.6

371.876.8-4.7

169.39.2

160.1473.0150.9322.130.5

3,472.2

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

3,744.3


II

4,838.54,808.44,121.24,042.53,645.3

397.278.8-.1

185.19.3

175.8502.1158.7343.530.0

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

-24.1

201.29.5

191.7530.1168.3361.834.5

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

III

5,273.25,248.04,489.64,424.53,986.6

437.883.4

-18.3214.4

9.7204.7544.0170.1374.025.2

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

1987

3,853.7450.9566.6

3,969.423.7

3,945.8

1988

4,024.4530.1605.0

4,099.327.9

4,071.4


n

4,010.7519.7592.3

4,083.321.5

4,061.8

ni4,042.7

531.9606.9

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

4,158.1587.5661.6

4,232.130.2

4,201.9

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 product ... .Gross domestic product . .

BusinessNonfarm

Nonfarm less housingHousing ,

FarmStatistical discrepancy

Households and institutionsPrivate householdsNonprofit institutions

GovernmentFederalState and local

Rest of the world . ..Addendum:

Gross domestic business product lessS

1987

3,853.73,827.23,328.93,249.62,967.8

281.883.4-4.1

128.68.8

119.9369.6123.6246.026.6

3,038.0

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


II

4,010.73,985.13,474.13,398.83,109.2

289.675.30

136.08.8

127.2375.0124.7250.325.6

III

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

m

4,158.14,137.43,606.73,545.33,248.2

297.176.0

-14.7148.1

9.0139.1382.7127.0255.720.6

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.


October 1989 SURVEY OF CURRENT BUSINESS 11

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 IncomefBillions of dollars]

Gross national product .Less: 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 consumptionadjustments

Net interest....Contributions for social

insuranceWage accruals less

disbursementsPlus: Government transfer payments to

personsPersonal interest incomePersonal dividend incomeBusiness transfer payments

Equals: Personal income

1987

4,524.3

486.7

507.1

20.44,037.6

367.826.7-4.7

17.63,665.4

298.7351.7

400.8

0

521.5523.292.026.7

3,777.6

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


II

4,838.5

510.2

525.2

15.04,328.2

390.128.7_ i

24.03,933.6

325.3383.0

441.1

0

553.2560.0100.428.7

4,026.6

III

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

IV

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

-.34,580.1

407.730.8

-24.1

19.54,185.2

316.3436.1

469.7

0

585.6629.0109.430.8

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

0

595.3655.1111.431.5

4,400.3

in

5,273.2

564.1

544.2

-19.94,709.1

421.332.2

1.6

470.7

482.1

0

603.4669.2113.232.2

4,456.5

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 discrepancy . .. .Equals: National income

3,853.7

460.83,392.9

317.9-41

3,079.0

4,024.4

480.23,544.2

327.8-80

3,224.5

4,010.7

477.53,533.2

326.30

3,206.9

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

3,301.6

4,132.5

498.93,633.6

331.8-14.8

3,316.6

4,158.1

517.83,640.3

335.3

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

3,853.7

-11574509566.6

3,969.4

-1136452.95666

3,855.8

100.5

4,024.4

-749530.1605.0

4,099.3

-111533.36050

4,027.5

100.6

4,010.7

-726519.7592.3

4,083.3

-73.1519.3592.3

4,010.2

99.9

4,042.7

-74.9531.9606.9

4,117.6

-64.5542.4606.9

4,053.1

101.9

4,069.4

-73.8551.4625.2

4,143.2

-68.0557.2625.2

4,075.2

101.1

4,106.8

-55.0569.7624.6

4,161.8

-51.1573.5624.6

4,110.7

100.7

4,132.5

-51.2587.5638.7

4,183.7

-47.7590.9638.7

4,136,0

100.7

4,158.1

-74.1587.5661.6

4,232.1

-65.3596.3661.6

4,166.8

101.5

National income ...Compensation of employees ,

Wages and salariesGovernment and government

enterprisesOther

Supplements to wages and salariesEmployer contributions for social

insuranceOther labor income

Proprietors' income with inventoryvaluation and capital consumptionadjustmentsFarm

Proprietors' income withinventory valuation adjustment....

Capital consumption adjustment......Nonfarm

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 adjustmentProfits 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

1987

3,665.42,690.02,249.4

419.21,830.1

440.7

227.8212.8

311.641.6

49.6-8.0

270.0238.9-1.032.2

13.461.2

-47.9

298.7

247.8266.7124.7142.098.743.3

-18.950.9

351.7

174.0

378.4

75.3

303.1

-18.9397.3

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


II

3,933.62,878.92,405.4

443.11,962.3

473.5

247.7225.9

331.845.4

53.0-7.7

286.5257.8-1.830.5

14.664.3

-49.7

325.3

276.4305.3138,4166.9108.658.3

-28.848.9

383.0

187.0

397.4

78.3

319.0

-28.8426.2

III

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

III

3,170.52,653.3

480.22,173.0

517.2

266.6250.7

345.437.2

44.3-7.1

308.2282.0

026.2

4.863.1

-58.3

""l233:

-4.726.6

470.7

349.9

-4.7

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.


12 SURVEY OF CURRENT BUSINESS October 1989Table 1.16.Gross Domestic Product of Corporate Business in Current Dollars

and 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 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 of

financial corporate business..Gross domestic product of

nonfinancial corporatebusiness .



liability plus business transferpayments less subsidies

Domestic incomeCompensation of employees

Wages and salaries .Supplements to wages and

salariesCorporate profits with inventory

valuation and capitalconsumption adjustmentsProfits before tax

Profits tax liability .Profits after tax


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

Net interest

Gross domestic product ofnonfinancial corporatebusiness



liability plus business transferpayments less subsidies

Domestic income

1987 1988


II III IV

1989

I II m

Billions of dollars

2,719.4

303.12,416.4

259.62,156.81,807.81,520.4

287.5

259.6227.6124.7102.982.820.1

-18.950.989.3

198.7

2,520.7

281.72,239.0

242.31,996.61,665.11,399.2

266.0

224.6197.293.1

104.181.422.7

-18.946.3

106.9

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

2,927.1

319.02,608.1

275.72,332.41,932.41,625.2

307.2

284.6264.6138.4126.278.148.2

-28.848.9

115.4

221.2

2,705.9

295.12,410.9

257.32,153.61,782.11,497.5

284.7

248.7234.9106.6128.377.450.9

-28.842.7

122.7

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

349.9

299.9

2J2l'i1,790.1

331.2

98.8

-4.726.6

146.7

321.9

280.1

1,953.61,647.1

306.6

95".8

-4.721.5

153.1


2,282.6

269.72,012.9

202.51,810.4

2,419.5

279.32,140.2

209.21,931.0

2,408.9

278.02,130.9

208.21,922.7

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

296.7

213.8

Auto outputFinal sales . . .

Personal consumption expendituresNew autosNet purchases of used autos

Producers' durable equipmentNew autosNet purchases of used autos

Net exports of goods and servicesExports ,Imports

Government purchases of goods andservices .

Change in business inventories ofnew and used autosNewUsed

Addenda:Domestic output of new autos 'Sales of imported new autos2

1987

119.2111.6131.793.538.219.145.0

-25.9-40.7

7.247.9

1.5

7.66.8

.8

95.355.1

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


II

132.5132.3145.7101.244.522.351.2

-28.9-37.1

7.945.0

1.5

.12.3

-2.1

103.062.0

ni

136.6125.3140.998.842.120.252.5

-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

III

140.8145.8154.7111.743.022.852.9

-30.1-33.2

8.942.0

1.5

-5.1-4.0

1.0

105.064.0

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 output'Final sales

Personal consumption expendituresNew autosNet purchases of used autos ,

Government purchases ofgoods and services

FederalNational defense

Durable goodsNondurable goodsServices

Compensation of employeesMilitaryCivilian

Other servicesStructures

Nondefense .Durable goodsNondurable goods

Commodity Credit Corporationinventory change

Other nondurablesServices

Compensation of employeesOther services .

StructuresState and local

Durable goods Nondurable goodsServices

Compensation of employeesOther services

Structures . .

1987

781.8339.6265,2

88.814.5

155.989.560.529.066.46.0

74.45.02.6

-3.96.5

59.334.225.17.5

442.124.146.2

315.5246.069.556.4

1988

785.1328.9261.584.614.3

156.989.160.029.167.85.7

67.45.4

-8.7

-15.66.9

64.836.128.75.9

456.2

26.148.6

323.7250.972.857.8


II

783.0

327.9262.585.014.7

156.888.859.828.968.06.0

65.45.6

-11.3

-19.68.3

65.335.929.45.8

455.125.948.4

322.7250.372.458.1

m

775.9319.8258.8

84.313.4

155.488.759.928.766.85.8

61.05.2

-14.7

-20.15.4

64.436.727.76.1

456.126.449.0

324.7251.573.256.0

IV

806.4

343.9261.685.014.7

156.489.159.829.367.35.4

82.35.63.9

-2.26.0

67.436.930.55.5

462.5

26.949.5

326.8252.774.159.3

1989

I

799.7

335.5254.482.113.9

153.589.559.729.864.04.8

81.15.73.6

-3.36.9

66.336.929.45.5

464.2

27.450.1

328.6253.775.058.0

n

810.3343.6255.882.814.5

153J89.459.529.964.34.7

87.85.89.1

3.16.0

67.237.030.25.7

466.7

27.950.7

330.6254.775.857.5

in

805.7

335.9258.283.714.1

155.389.759.630.165.65.1

77.75.8-.9

-6.96.0

67.037.329.75.8

469.928.451.4

332.4255.776.757.7


October 1989 SURVEY OF CURRENT BUSINESS 15

Table 3.9.National Defense Purchases of Goods and Services


Table 3.10.National Defense Purchases of Goods and Services in ConstantDollars


National defense purchasesDurable goods

Military equipment .AircraftMissilesShipsVehiclesElectronic equipmentOther

Other durable goodsNondurable goods

Petroleum products .AmmunitionOther nondurable goods

ServicesCompensation of employees

MilitaryCivilian

Other servicesContractual research and

developmentInstallation support 'Weapons support 2Personnel support 3 .Transportation of materielTravel of personsOther

StructuresMilitary facilitiesOther

1987

294.889.877.533.912.78.54.85.8

11.712.310.54.23.82.5

187.3108.973.335.678.3

28.522.2

8.811.33.83.807.24.92.4

1988

298.083.972.929.312.48.44.26.0

12.511.010.94.43.92.6

196.1113.276.037.282.9

30.723.88.9

11.83.74.007.04.72.4


II

298.083.772.529.112.58.04.26.0

12.611.211.44.44.62.5

195.5112.975.837.182.6

30.223.99.0

11.93.63.9.1

7.45.02.4

III

296.183.773.027.912.78.14.35.8

14.210.710.54.33.52.7

194.7113.076.236.981.7

30.323.4

8.511.93.93.9-.37.24.92.3

IV

300.585.174.330.513.39.33.76.5

10.910.711.14.73.82.6

197.4113.776.237.683.6

31.423.69.1

11.73.83.9.1

7.04.62.4

1989

I

298.782.772.921.112.910.23.75.9

12.59.8

10.84.63.62.7

198.8119.179.140.079.8

29.822.38.9

11.43.63.706.34.02.2

II

301.382.872.226.014.39.03.46.3

13.110.611.74.64.22.9

200.5119.479.040.481.2

30.222.89.0

11.63.83.9-.2

6.33.92.4

III

306.284.274.125.414.99.43.76.9

. 13.810.111.74.94.12.7

203.5120.079.240.783.6

30.524.29.0

12.43.93.9-.36.84.62.2

1. Includes utilities, communications, rental payments, maintenance and repair, and payments to contractorsto operate installations.

2. Includes depot maintenance and contractual services for weapons systems, other than research anddevelopment.

3. Includes compensation of foreign personnel, consulting, training, and education.

Table 4.1.Foreign Transactions in the National Income and Product Accounts[Billions of dollars]

Receipts from foreigners 'Exports of goods and services ' .

Merchandise2Durable goods 2Nondurable goods

Services ' .Factor income 3 4Other5

Capital grants received by the UnitedStates (net)

Payments to foreigners 6

Imports of goods and services 6Merchandise 2

Durable goods 2Nondurable goods

Factor income 3Other 7

Transfer payments (net)From persons (net)From government (net) ..

Interest paid by government toforeigners

Net foreign investment

!1987

448.6448.6255.1161.893.3

193.596.697.0

0448.6561.2412.4264.2148.3148.866.182.714.31.9

12.4

24.1

-150.9

1988

547.7547.7322.0206.8115.2225.7116.7108.9

0547.7621.3449.0294.5154.5172.383.488.914.71.9

12.9

29.1-117.5


II

532.5532.5314.4201.4113.0218.1111.3106.9

0532.5607.5439.5286.9152.6168.081.386.711.71.5

10.2

28.4

-115.0

III

556.8556.8327.5208.5119.0229.3118.1111.2

0556.8623.0448.8294.0154.8174.285.988.313.61.9

11.7

30.2

-109.9

IV

579.7579.7341.0221.3119.7238.6125.5113.2

0579.7650.5468.8312.6156.3181.691.090.620.2

1.918.2

31.1-122.0

1989

I

605.6605.6358.7231.4127.2246.9131.9115.1

0605.6659.6469.8309.6160.3189.897.392.513.82.2

11.5

32.5-100.3

II

626.1626.1372.1239.1133.0254.0136.2117.8

0626.1676.6480.0308.0172.0196.6105.291.412.51.4

11.1

34.4

-97.5

m

618.6618.6368.1241.3126.8250.5129.9120.6

0618.6686.3486.8311.8175.0199.5104.694.814.12.2

12.0

34.0-115.9

1. See footnote 5 and the box on page 21 of the July 89 SURVEY OF CURRENT BUSINESS.2. Estimates beginning with the first quarter of 1986 exclude repairs and alterations of equipment, which

was reclassified to "other" services.3. Line 7 less line 16 equals rest-of-the-world product as shown in table 1.7.4. Estimates beginning with the first quarter of 1986 exclude noninterest income of banks, which was

reclassified to "other" services.5. Estimates beginning with the first quarter of 1986 cover many business, professional, and technical

services and incorporate improved measurement of telecommunications services and insurance services;incorporate new source data on travel and passenger fares; cover foreign students' expenditures in the UnitedStates; cover repairs and alterations of equipment; and cover noninterest income of banks.

6. See footnote 7 and the box on page 21 of the July 89 SURVEY OF CURRENT BUSINESS.7. Estimates beginning with the first quarter of 1986 cover many business, professional, and technical

services and incorporate improved measurement of telecommunications services and insurance services;incorporate new source data on travel and passenger fares; cover U.S. students' expenditures abroad; coverrepairs and alterations of equipment.

National defense purchasesDurable goods

Military equipment

MissilesShipsVehiclesElectronic equipmentOther

Other durable goodsNondurable goods

Petroleum products

Other nondurable goodsServices

Compensation of employeesMilitaryCivilian

Other servicesContractual research and

developmentInstallation support 'Weapons support2Personnel support3Transportation of materielTravel of persons .Other

StructuresMilitary facilitiesOther

1987

265.288.873.331.612.87.45.15.5

10.915.514.58.33.92.3

155.989.560.529.066.4

24.817.57.78.74.13.706.04.02.0

1988

261.584.670.829.013.57.14.55.6

11.213.814.37.94.12.2

156.989.160.029.167.8

25.518.27.68.93.93.805.73.71.9


II

262.585.071.028.414.26.74.65.7

11.414.114.77.84.82.1

156.888.859.828.968.0

25.218.47.79.03.83.7.1

6.04.11.9

III

258.884.370.927.913.66.74.65.4

12.713.413.47.33.72.3

155.488.759.928.766.8

25.117.87.38.94.23.7-.25.83.91.9

IV

261.685.071.830.414.17.83.96.09.7

13.214.78.64.02.2

156.489.159.829.367.3

25.717.87.68.63.93.7

.1

5.43.51.9

1989

I

254.482.169.726,614.48.44.05.4

10.912.413.97.83.82.3

153.589.559.729.864.0

24.416.87.48.33.63.404.83.01.7

II

255.882.869.425.915.57.33.65.7

11.413.414.57.84.32.4

153.789.459.529.964.3

24.116.97.58.43.93.6-.14.7

2.91.8

ni

258.283.770.625.415.57.63.96.3

11.913.214.17.64.22.2

155.389.759.630.165.6

24.317.57.48.94.03.6-.2

5.13.41.7

1. Includes utilities, communications, rental payments, maintenance and repair, and payments to contractorsto operate installations.

2. Includes depot maintenance and contractual services for weapons systems.3. Includes compensation of foreign personnel, consulting, training, and education.

Table 4*2.Exports and Imports of Goods and Services in Constant Dollars[Billions of 1982 dollars]

Exports of goods and services 'Merchandise 2

Durable goods 2Nondurable goods

Services 'Factor income 3 4Other5

Imports of goods and services6

Merchandise 2Durable goods 2Nondurable goods

Services 6Factor income 3 .Other 7

1987

450.9285.7185.899.8

165.281.184.1

566.6440.5261.8178.7126.154.571.5

1988

530.1344.3234.0110.4185.894.791.1

605,0467.1280.8186.3137.966.671.3


II

519.7339.0228.2110.8180.690.889.8

592.3456.5274.5182.1135.865.270.5

III

531.9344.1234.2109.9187.895.392.5

606.9468.3281.8186.6138.568.270.3

IV

551.4358.6248.0110.5192.8100.092.8

625.2483.4291.3192.1141.971.470.4

1989

I

569.7372.5254.0118.5197.2104.093.2

624.6477.4290.7186.7147.275.771.6

II

587.5386.9262.8124.1200.6106.194.5

638.7487.5296.1191.4151.180.970.2

III

587.5391.1270.2120.9196.4100.396.0

661.6509.6306.3203.3152.079.772.3

1. See footnote 5 and the box on page 21 of the July 89 SURVEY OF CURRENT BUSINESS.2. Estimates beginning with the first quarter of 1986 exclude repairs and alterations of equipment, which

was reclassified to "other" services.3. Line 6 less line 13 equals rest-of-the-world product as shown in table 1.8.4. Estimates beginning with the first quarter of 1986 exclude noninterest income of banks, which was

reclassified to "other" services.5. Estimates beginning with the first quarter of 1986 cover many business, professional, and technical

services and incorporate improved measurement of telecommunications services and insurance services;incorporate new source data on travel and passenger fares; cover foreign students' expenditures in the UnitedStates; cover repairs and alterations of equipment; and cover noninterest income of banks.

6. See footnote 7 and the box on page 21 of the July 89 SURVEY OF CURRENT BUSINESS.7. Estimates beginning with the first quarter of 1986 cover many business, professional, and technical

services and incorporate improved measurement of telecommunications services and insurance services;incorporate new source data on travel and passenger fares; cover U.S. students' expenditures abroad; coverrepairs and alterations of equipment.


16 SURVEY OF CURRENT BUSINESS October 1989

Table 4.3.Merchandise Exports and Imports by Type of Product and by End-Use Category


Table 4.4.Merchandise Exports and Imports by Type of Product and by End-Use Category in Constant Dollars


Merchandise exports l

Foods, feeds, and beveragesIndustrial supplies and materials

Durable goodsNondurable goods

Capital goods, except autosAutosConsumer goods


Other 1Durable goods l 2Nondurable goods 2 ,

Merchandise imports !

Foods feeds and beveragesIndustrial supplies and materials,

excluding petroleumDurable goodsNondurable goods

Petroleum and productsCapital goods except autosAutosConsumer goods


Other1Durable goods1 2Nondurable goods 2

Addenda:Exports of agricultural products3Exports of nonagricultural products ...Imports of nonpetroleum products

1987

255.124.866.320.346.087.727.518.37.7

10.630.518.512.0

412.424.8

65.935.030.842.985.185.288.849.039.819.79.89.8

29.5225,5369.5

1988

322.032.983.027.955.1

112.432.524.211.013.237.023.114.0

449.024.9

76.440.935.639.3

101.887.996.452.843.622.311.211.2

38.1283.8409.7

Seasonally adjusted at annua

SCB_101989

Documents

annual estimates

percent increase

revised estimates

total personal income

percent and2

growth of real gnp

current weights

quarterly estimates