Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
DECEMBER . 1986 /\ VOLUME 66: NUMBER 12-
CONTENTS
' \ ' ; > ; . . - . . ' ' Business Situation 1
National Income and Product Accounts Tables 3
and Other Special Tables 16
. .- Plant and Equipment Expenditures: '17'* Quarters of 1986* First and Second Quarters of 1987
" - ' ' - * Year 1987 '.
Plant and Equipment Expenditures by Businessfor Pollutton Abatement, 1985 and 1986 20
U.a International Transactions, Third Quarter 1986 23Constant-Dollar Inventories, Sales, and Inventory-Sales
Eatios for Manufacturing and Trade 47
Subject Guide, Volume 66 (1986) 51
CURRENT BUSINESS STATISTICSGeneral SI
Industry S19Footnotes S33
Subject Index (Inside Back Cover)
+1**&^
J*SMalcolm Baldrige / Secretary. 'Robert Ortner / UMer:SecreMry'
' 'Allan H. Tdiiitg / Mreet&r . ' Carol B* Carson / Deputy JMreetor
of
Editor-in-Chief: Carol S. CarsonMmmerigt Mitor: Banitelei A.Managing Editor; LeSand L* Scott
Staff nti$ut&r$ t& Tfyis Issue: Leo M, Bemsteiii,David W. Cartwrlght, Anthony J. DILnilo, Daniel J.*Larkins Gary L, Eutledge, Eugene F SesMn, Nfkohlaos A, Stergioulas, David F. Siillivanf Nationalincome and Wealtli ptvision
SUEVUY OF CURKENT BUSINESS. Published monthly bythe Bureau of Economic Analysis qftlie U.S. Departaeatof Commerce, Iditprial correspondence should be ad-dressed to the Editpr4ahief, Survey of Current Busi-ness? Bureau of Economic Analysis, U.S. Department ofCommerce, Washington, DC 20230.
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the BUSINESS SITUATION
A ROFITS from current production-profits before tax with inventory valu-ation adjustment (IVA) arid capitalconsumption adjustment (CCAdj)in-creased $9 billion in the third quar-ter, following a $3 Va billion decline inthe second.
Domestic profits of nonfinancialcorporations increased $7 billion, fol-lowing a $x/2 billion increase, reflect-ing higher real gross corporate prod-uct and higher profits per unit. Withrespect to the higher unit profits, anincrease in unit price more thanoffset increases in unit labor and non-labor costs.
Domestic profits of financial corpo-rations changed littleup $% bil-lionfollowing a $2 billion increase,and profits from the rest of the worldrebounded $2 billion, following a $5V2billion decline.
Profits before tax.As explained inthe following section, profits beforetax (PBT) and a number of other prof-its-related estimates have been adjust-ed for the first three quarters of 1986to reflect retroactive provisions of theTax Reform Act of 1986; the adjustedfigures are used in this discussion.
PBT increased $12y2 billion in thethird quarter, following an increase of$5 billion in the second. The largerthird-quarter increase reflected a $7x/2billion swing in profits from the restof the world; PBT of domestic corpo-rations increased about $10 Vs billionin both quarters.
The difference between the $12y2billion increase in PBT and the $9 bil-lion increase in profits from currentproduction is primarily due to theIVA, which declined $4^2 billion; theCCAdj increased $y2 billion. These ad-justments convert depreciation and
inventories reported by business tothose used by BE A in the estimationof profits from current production.The decline in the IVA, from $10y2billion to $6 billion, reflected smallerdecreases in inventory prices than inthe second quarter.
Profits with IVA but withoutCCAdj.The quarterly measure ofprofits available by industry in-creased $8 billion, following a declineof $*/2 billion. Profits of domestic non-financial corporations increased* $6y2billion, as increased trade profitsmore than offset a decline in manu-facturing profits; in the second quar-ter, when domestic profits of nonfi-nancial corporations had increased$3y2 billion, the opposite occurred: in-creased manufacturing profits morethan offset lower trade profits.
Both retail and wholesale tradecontributed to the increase in tradeprofits in the third quarter. Profits ofretailers increased moderately after asecond-quarter decline; retailers' prof-its have seesawed in this fashionupone quarter and down the nextformore than a year. Profits of wholesal-ers increased sharply, rebounding to
year-earlier levels after several quar-ters of weakness. The increase reflect-ed the first substantial increase insales in a number of quarters.
In manufacturing, sizable declineswere widespread among durables pro-ducers, although the largest of themanufacturing declines was in petro-leum, a nondurable; a numberof cor porations in this industryengage in the extraction of crude oilas well as in refining, and their prof-its were damped by lower prices andsluggish production of crude.
Rest-of-the-world profits, which areexpressed on a net (i.e., inflows minusoutflows) basis, increased $2 billion,following a $5x/2 billion decline, asoutflows declined more than inflows.
*
Third-quarter NIP A revisionsThe 75-day revisions of the national
income and product accounts esti-mates for the third quarter of 1986are shown in table 2 on page 16.
Looking Ahead . . . International Sales of Services. Data on sales of services by U.S. mul-
tinational corporations and their foreign affiliates, 1982-84, will be pre-sented in the January issue of the SURVEY.
Input-Output Accounts. The 1981 annual input-output tables will bepresented in the January issue of the SURVEY.
Tax Reform Act of 1986. An analysis of major provisions of the TaxReform Act of 1986 and their impact on Federal sector receipts on a na-tional income and product accounting basis will appear in an upcomingissue of the SURVEY.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SURVEY OF CURRENT BUSINESS December 1986
Retroactive Effects of the Tax Reform Act of 1986 on the NationalIncome and Product Accounts Estimates
The Tax Reform Aet of 1986 was signed into law on October 22, 1986.Most provisions of the act become effective January 1, 1987 and will bediscussed in an upcoming issue of the SURVEY OF CURRENT BUSINESS.However, certain capital cost provisions are retroactive to January 1,1986: (1) The investment tax credit is repealed for assets placed in servicein 1986, except for certain assets covered by transition rules; (2) the basisfor depreciation is restored to full cost from the 95 percent of cost re-quired with the use of the investment tax credit under prior law, exceptfor certain assets covered by transition rules, for which the basis for de-
Table 1.Effect of the Retroactive Capital Cost Provisions of the TaxReform Act of 1986, NIPA Basis
Capital consumption allowances with capitalconsumption adjustmentCapital consumption allowancesLess' Capital consumption adjustment
Repeal of investment tax credit:Restoration of depreciation basis to full cost 1..
Acceleration of depreciation
Nonfarm proprietors' income with capital consumptionadjustmentNonfarm proprietors' capital consumption adjustment ..Nonfarm proprietors' income
Repeal of investment tax credit:Restoration of depreciation basis to full cost l
Acceleration of depreciation
Corporate profits with capital consumption adjustment ....Corporate capital consumption adjustmentProfits before tax
Repeal of investment tax credit:Restoration of depreciation basis to full cost * .....
Acceleration of depreciationProfits tax liability
Repeal of investment tax credit:Investment tax creditRestoration of depreciation basis to full cost 1
Acceleration of depreciationProfits after tax ,
Repeal of investment tax credit:Investment tax creditRestoration of depreciation basis to full cost x
Acceleration of depreciation
Billions of dollars
1986
05.25.2
1.14.1
0.88
-.2-.6
04.444
-.9-3.5
5.3
7.6-.418
-9.8
-7.6-.517
Seasonally adjusted at annualrates
1986
I
02.12.1
.41.6
0.3
-.3
-.1-.2
01.818
-.4-1.4
6.6
7.5-.2__7
-8.3
75-.2
7
II
04.24.2
.93.3
0.6
-.6
-.15
03.5
-3.5
-.8-2.8
5.7
7.5-.4
-1.5-9.2
75-.4
-1.3
III
06.26.2
1.34.9
0.9
-.9
-.27
05.3
-5.3
-1.14.25.0
7.7-.5
-2.2-10.3
77-.6
-2.0
IV
08.48.4
1.86.6
01.3
-1.3
-.3-1.0
07.1
-7.1
-1.5-5.6
4.2
7.8-.7
-2.911.2
-7.8-.8
-2.7
1. Less a lower basis for depreciation required for transition rule assets under the" nelaw.
preciation is reduced from 95 to 90 percent; and (3) some assets not cov-ered by transition rules and placed in service during the last five monthsof 1986 are made eligible for accelerated (double-declining balance) depre-ciation.
National income and product (NIPA) estimates for the first three quar-ters of 1986 have been adjusted to reflect the retroactive provisions. Theretroactive provisions affect the NIPA measures of national income with-out capital consumption adjustment, corporate profits, nonfarm propri-etors' income, and capital consumption allowances (all without capitalconsumption adjustment), cash flow, corporate profits tax liability, andthe capital consumption adjustment. The measures are in the followingNIPA tables: 1.9, 1.14, 1.16, 3.2, 3.3, 5.1, 6.3B, 6.18B, and 7,18.
The adjustments for retroactive provisions are based on preliminaryestimates for the year 1986 provided by the Treasury Department. Previ-ously published estimates for the first three quarters of 1986 were basedon prior tax laws.
The adjustments are summarized in table 1 for the year 1986 and forthe four quarters.
The adjustments increase capital consumption allowances by $5.2 bil-lion for the year, and decrease income by the same amount (nonfarmproprietors' income by $0.8 billion and corporate profits by $4.4 billion).The restoration of the depreciation basis to full cost accounts for $1.1 bil-lion, and the acceleration of depreciation accounts for $4.1 billion.
The adjustments increase corporate tax liability by $5.3 billion in1986. The repeal of the investment tax credit increases profits tax liabil-ity by $7.6 billion, and the restoration of the depreciation basis to fullcost and the acceleration of depreciation decrease liability by $0.4 and$1.8 billion, respectively.
The adjustments decrease profits after tax by $9.8 billion.No adjustments are required for other NIPA components. Because the
effects of the retroactive provisions on corporate profits, nonfarm propri-etors' income, and capital consumption allowances are offset in theNIPA's in their capital consumption adjustments, the corresponding esti-mates with capital consumption adjustment are not affected. NIPA esti-mates of farm proprietors' income, which are not developed from taxreturn data, and estimates of rental income of persons, which are onlyminimally based on such data, are also not affected. Because personaltax and nontax payments are recorded in the NIPA's on a cash basis,rather than a liability basis, they are not affected retroactively. The ret-roactive provisions do not affect national income, personal income, dis-posable personal income, personal saving, gross corporate product, orGNP.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
December 1986 SURVEY OF CURRENT BUSINESS
National Income and Product Accounts Tables
New estimates in this issue: Third quarter 1986, revised (r). Estimates of capital consumption allowances, corporate profits before tax, pro-prietors' income, and related estimates for the first three quarters of 1986 have been adjusted to reflect the retroactive provisions of the TaxReform Act of 1986. The following tables were affected: 1.9, 1.14, 1.16, 3.2, 3.3, 5.1, 6.3B, 6.18B, and 7.18. See page xx.
Estimates for 1929-82 are in The National Income and Product Accounts, 1929-82: Statistical Tables (Stock No. 003-010-00174-7, price$23.00). Estimates for 1983-1985 are in the July 1986 SURVEY. These publications are available from the Superintendent of Documents andCommerce Department District Offices; see addresses inside front cover.
The full set of National Income and Product Accounts estimates shown regularly in this part of the SURVEY are now available on diskettefor $240 per year (12 updates). For more information, write to the Bureau of Economic Analysis (BE54), U.S. Department of Commerce, Wash-ington, DC 20230.
Table 1.1.Gross National Product[Billions of dollars]
Table 1.2.Gross National Product in Constant Dollars[Billions of 1982 dollars]
Gross national product......Personal consumption
expendituresDurable goodsNondurable goodsServices
Gross private domesticinvestment.... ...Fixed investment
Nonresidential ;StructuresProducers' durable
equipmentResidential
Change in businessinventoriesNonfarm ...Farm
Net exports of goods andservicesExportsImports
Government purchases of goodsand servicesFederal ..
National defenseNondefense .
State and local ...
1984
3,765.0
2,428.2331.2870.1
1,227.0
662.1598.0416.5139.3277.3181.4
64.156.67.5
-58.7382.7441.4
733.4311.3235.0
76.2422.2
1985
3,998.1
2,600.5359.3905.1
1,336.1
661.1650.0458,2154.8303.4191.811.112.2
-1.1
-78.9369.8448.6
815.4354.1259.4
94.7461.3
Seasonally adjusted at annual rates1985
A
II
3,965.0
2,576.0354.0902.3
1,319.7
667.1648.0459.2156.1303.1188.8
19.110.48.6
-77.1370.0447.1
799.0340.9255.1
85.8458.1
III
4,030.5
2,627.1373.3907.4
1,346.4
657.4654.3459.8155.0304.71945
3.13.21
-83.7362.3446.0
829.7360.9265.5
95.5468.8
IV
4,087.7
2,667.9362.0922.6
1,383.2
669.5672.6474.0157.2316.8198.6
3 116.719 9
-105.3368.2473.6
855.6380.9268.0112.9474.7
1986I
4,149.2
2,697.9360.8929.7
1,407.4
708.3664.4459.2154.6304.6205.3
43.841.22.7
-93.7374.8468.5
836.7355.7266.4
89.3480.9
II
4,175.6
2,732.0373.9928.4
1,429.8
687.3672.8457.5141.5316.0215.3
14.510.53.9
-104.5363.0467.5
860.8367.6278.4
89.2493.3
nr
4,240.7
2,799.8414.5932.8
1,452.4
675.8680.3459.0139.5319.5221.3
4 5-10.3
5.8
-108.9370.8479.7
874.0369.3286.8
82.6504.7
NOTE.Percent changes from preceding period for selected items in this table are shown intable 8.1.
Table 1.3.Gross National Product by Major Type of Product[Billions of dollars]
Gross national productFinal salesChange in business
inventoriesGoods
Final salesChange in business
inventoriesDurable goods
Final salesChange in business
Nondurable goodsFinal salesChange in business
inventoriesServices '.Structures
1984
3,765.03,700.9
64.11,576.71,512.6
64.1675.0635.9
39.2901.7876.7
25.01,813.2
375.1
1985
3,998.13,987.0
11.11,630.21,619.1
ii.i700.2693.6
6.6930.0925.5
4.51,959.8
408.1
Seasonally adjusted at annual rates1985
II
3,965.03,945.9
19.11,622.41,603.3
19.1693.1690.8
2.3929.3912.6
16.71,935.4
407.2
III
4,030.54,027.4
3.11,642.71,639.7
3.1710.3713.0-2.7932.5926.7
5.81,971.9
415.9
IV
4,087.74,090.8
-3.11,644.11,647.2
-3.1709.1699.6
9.5935.0947.7127
2,025.5418.1
1986I
4,149.24,105.4
43.81,669.01,625.2
43.8710.6682.0
28.6958.4943.115.3
2,057.7422.6
II
4,175.64,161.2
14.51,661.51,647.1
14.5703.1703.2
1958.5943.9
14.62,087.4
426.7
IIP
4,240.74,245.2
-4.51,680.21,684.7
45730.1745.7156
950.1939.011.1
2,125.2435.3
Gross national productPersonal consumption
expendituresDurable goods. ..Nondurable goodsServices
Gross private domesticinvestmentFixed investment
NonresidentialStructuresProducers' durable
equipmentResidential.. ..
Change in businessinventoriesNonfarmFarm
Net exports of goods andservicesExportsImports
Government purchases of goodsand servicesFederal
National defenseNondefense
State and local
1984
3,489.9
2,246.3318.9828.6
1,098.7
652.0592.8422.2141.3
280.9170.6
59.254.34.9
-83.6369.7453.2
675.2291.7219.4
72.3383.5
1985
3,585.2
2,324.5343.9841.6
1,139.0
647.7638.6461.4152.2309.2177.2
9.010.9
-1.9
-108.2362.3470.5
721.2323.6235.787.8
397.6
Seasonally adjusted at annual rates1985
II
3,567.6
2,311.9338.8841.3
1,131.8
655.6638.1463.0154.1308.9175.1
17.49.67.8
108.1361.2469.3
708.3311.4233.5
77.9396.9
III
3,603.8
2,342.0357.4843.8
1,140.8
643.8643.1463.1152.3310.9180.0
.71.4-.7
-113.8355.8469.6
731.8329.9242.2
87.6401.9
IV
3,622.3
2,351.7347.0847.2
1,157.5
653.2658.4476.9152.4324.5181.5
5216.1213
-132.0362.9494.8
749.4347.2239.3107.9402.2
1986I
3,655.9
2,372.7345.4860.6
1,166.6
684.0644.1457.8148.1309.7186.339.937.02.9
-125.9369.2495.1
725.2320.4238.7
81.7404.8
II
3,661.4
2,408.4357.1877.3
1,174.0
664.7649.6456.8132.9323.9192.715.111.04.1
-153.9359.8513.6
742.2328.9249.3
79.5413.3
IIF
3,686.4
2,448.0391.6875.4
1,181.0
651.3651.6454.4129.5324.9197.2-.3
-8.68.3
-163.3371.2534.5
750.4330.9259.4
71.5419.5
NOTE.Percent changes from preceding period for selected items in this table are shown intable 8.1.
Table 1.4.Gross National Product by Major Type of Product inConstant Dollars[Billions of 1982 dollars]
Gross national productFinal salesChange in business
inventoriesGoods
Final salesChange in business
inventoriesDurable goods
Final salesChange in business
inventoriesNondurable goods
Final salesChange in business
inventoriesServicesStructures
1984
3,489.93,430.7
59.21,503.11,443.9
59.2653.4615.9
37.5849.7828.0
21.71,623.0
363.9
1985
3,585.23,576.2
9.01,533.21,524.2
9.0675.8670.0
5.9857.4854.2
3.21,667.6
384.4
Seasonally adjusted at annual rates1985
II
3,567.63,550.2
17.41,526.01,508.6
17.4668.3666.6
1.7857.7841.9
15.71,656.5
385.1
III
3,603.83,603.1
.71,544.21,543.6
.7686.5689.3
29857.8854.2
3.51,668.7
390.9
IV
3,622.33,627.5
-5.21,541.71,546.9
-5.2688.7680.2
8.4853.0866.7
-13.61,692.1
388.5
1986I
3,655.93,616.1
39.91,563.61,523.7
39.9688.6662.6
26.0875.0861.1
13.91,703.0
389.4
II
3,661.43,646.3
15.11,562.81,547.6
15.1687.5688.3-.7
875.2859.4
15.91,712.0
386.6
IIIr
3,686.43,686.7
-.31,568.01,568.3
-.3714.2728.6-14.4853.8839.714.1
1,727.2391.3
NOTE.Percent changes from preceding period for selected items in this table are shown intable 8.1.
NOTE.Percent changes from preceding period for selected items in this table are shown intable 8.1.
NOTE.Some estimates for the first three quarters of 1986have been adjusted to reflect the retroactive provisions of the
Tax Reform Act of 1986. See page 2.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
4 SURVEY OF CURRENT BUSINESS December 1986
Table 1.5.Relation of Gross National Product, Gross DomesticPurchases, and Final Sales to Domestic Purchasers
[Billions of dollars]
Gross national productLess: Exports of goods and
servicesPlus: Imports of goods and
services .. .Equals: Gross domestic
purchases l
Less: Change in businessinventories
Equals: Final sales to domesticpurchasers2
1984
3,765.0
382.7
441.4
3,823.7
64.1
3,759.6
1985
3,998.1
369.8
448.6,
4,077.0
11.1
4,065.9
Seasonally adjusted at annual rates1985
II
3,965.0
370.0
447.1
4,042.1
19.1
4,023.0
III
4,030.5
362.3
446.0
4,114.2
3.1
4,111.1
IV
4,087.7
368.2
473.6
4,193.0
-3.1
4,196.1
1986I
4,149.2
374.8
468.5
4,242.9
43.8
4,199.0
II
4,175.6
363.0
467.5
4,280.1
14.5
4,265.7
IIIr
4,240.7
370.8
479.7
4,349.5
45
4,354.1
1. Purchases in the United States of goods and services wherever produced.2. Final sales in the United States of goods and services wherever produced.NOTE.Percent changes from preceding period for selected items in this table are shown in
table 8.1.
Table 1.7.Gross National Product by Sector[Billions of dollars]
Gross national productGross domestic product
BusinessNonfarm ..
Nonfarm less housingHousing
FarmStatistical discrepancy
Households and institutionsPrivate households ....Nonprofit institutions
GovernmentFederalState and local
Rest of the worldAddendum:
Gross domestic businessproduct less housing
1984
3,765.03,717.53,194.33,117.22,830.1
287.179.0
-1.9132.3
9.1123.2390.9132.0258.947.5
2,897.5
1985
3,998.13,957.03,394.03,324.03,010.9
313.175.5
-5.5142.1
9.3132.8420.9140.7280.141.2
3,072.2
Seasonally adjusted at annual rates1985
II
3,965.03,923.83,365.73,301.32,992.1
309.276.1
-11.7140.5
9.3131.3417.6140.0277.641.2
III
4,030.53,991.43,424.73,357.83,040.9
316.972.4
-5.5143.4
9.3134.1423.3140.5282.839.1
IV
4,087.74,045.83,468.43,389.43,065.4
323.977.51.6
146.29.4
136.8431.2143.4287.841.9
1986I
4,149.24,106.03,519.93,451.73,121.5
330.271.8
-3.6149.5
9.5140.0436.7144.0292.643.2
II
4,175.64,140.73,546.33,470.13,132.4
337.771.6
4.6152.0
9.6142.3442.5144.7297.834.9
lllr
4,240.74,203.23,600.73,524.03,180.1
343.966.410.3
154.49.9
144.5448.1145.2302.937.4
NOTE.Percent changes from preceding period for selected items in this table are shown intable 8.1.
Table 1.8.Gross National Product by Sector in Constant Dollars[Billions of 1982 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 businessproduct less housing
1984
3,489.93,446.02,978.32,910.42,653.7
256.769.6
-1.7117.7
9.0108.8350.0120.7229.343.9
2,712.0
1985
3,585.23,548.33,071.52,998.92,735.3
263.677.650
121.29.1
11.2.2355.5122.6232.937.0
2,798.1
Seasonally adjusted at annual rates1985
II
3,567.63,530.53,054.82,988.02,725.1
262.977.5107
120.69.0
111.6355.1122.6232.537.1
III
3,603.83,568.83,090.83,016.92,752.5
264.478.9
-4.9121.8
9.1112.7356.2122.8233.435.1
IV
3,622.33,585.23,105.43,025.02,759.2
265.779.01,4
122.99.1
113.7356.9122.6234.337.1
1986I
3,655.93,617.93,135.83,061.62,794.2
267.477.4
-3.2124.1
9.2114.9357.9122.9235.038.1
II
3,661.43,630.63,146.93,067.52,798.3
269.275.34.0
125.19.3
115.7358.7123.0235.730.8
IIIr
3,686.43,653.83,168.03,087.32,816.2
271.271.59.1
126.09.5
116.5359.8123.2236.632.7
Table 1.6.Relation of Gross National Product, Gross DomesticPurchases, and Final Sales to Domestic Purchasers in-Constant Dollars
[Billions of 1982 dollars]
Gross national productLess: Exports of goods and
servicesPlus: Imports of goods and
servicesEquals: Gross domestic
purchases 1
Less: Change in businessinventories
Equals: Final sales to domesticpurchasers 2 . . .
1984
3,489.9
369.7
453.2
3,573.5
59.2
3,514.3
1985
3,585.2
362.3
470.5
3,693.4
9.0
3,684.4
Seasonally adjusted at annual rates1985
II
3,567.6
361.2469.3
3,675.7
17.4
3,658.3
III
3,603.8
355.8
469.6
3,717.6
.7
3,716.9
IV
3,622.3
362.9
494.8
3,754.3
-5.2
3,759.5
1986
I
3,655.9
369.2
495.1
3,781.9
39.9
3,742.0
II
3,661.4
359.8
513.6
3,815.3
15.1
3,800.1
IIP
3,686.4
371.2
534.5
3,849.7
-.3
3,850.0
1. Purchases in the United States of goods and services wherever produced.2. 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 1.9.Relation of Gross National Product, Net National Product,National Income, and Personal Income
[Billions of dollars]
Gross national productLess: Capital consumption
allowances with capitalconsumption adjustment
Capital consumptionallowances withoutcapital consumptionadjustment
Less: Capitalconsumptionadjustment
Equals: Net national productLess: Indirect business tax and
nontax liabilityBusiness transfer
paymentsStatistical discrepancy
Plus: Subsidies less currentsurplus of governmententerprises
Equals: National income . . .Less: Corporate profits with
inventory valuation andcapital consumptionadjustments
Net interestContributions for social
insurance. . . .Wage accruals less
disbursementsPlus: Government transfer
payments to personsPersonal interest income....Personal dividend income .Business transfer
paymentsEquals: Personal income
3,765.0
415.1
4126
253,349.9
3120183
-1.9
1053,032.0
26473074
32672
4373446.9
74.7
18.33,110.2
3,998.1
437.2
4673
30.13,560.9
3314209
-5.5
823,222.3
280731143557
2
4662476.276.420.9
3,314 5
3,965.0
433.1
4649
3193,531.9
3319206
-11.7
1023,201.4
274331143539
10
4635475.376.420.6
3,298 7
4,030.5
441.3
4747
3343,589.3
3327
212-5.5
263 243.4
29633097
35680
4699475.276.321.2
3 323.2
4,087.7
446.7
4785
3193,641.0
3377
2171.6
743,287.3
28563076
36210
4718480.676.721.7
3,382.9
4,149.2
447.1
4800
3293,702.1
3467
223-3.6
413,340.7
29643049
371 50
4824480.879.122.3
3,432.6
4,175.6
453.3
4833
30.03,722.3
3408
2294.6
2243,376.4
293 12977
37350
4872480.181.122.9
3,483.3
4,240.7
457.6
4894
3183,783.1
3542
23510.3
103,396.1
3020292.9
376.60
495.0473.882.023.5
3,498.8
Table 1.10.Relation of Gross National Product, Net National Product,and National Income in Constant Dollars
[Billions of 1982 dollars]
Gross national productLess: Capital consumption
allowances with capitalconsumption adjustment
Equals: Net national productLess: Indirect business tax and
nontax liability plus businesstransfer payments lesssubsidies plus current surplusof government enterprises
Statistical discrepancyEquals* National income
3,489.9
407.13,082.8
289.6-1.7
2,794.8
3,585.2
425.63,159.6
297.7-5.0
2,866.8
3,567.6
421.93,145.7
295.9-10.7
2,860.5
3,663.8
429.43,174.4
299.3-4.9
2,880.0
3,622.3
433.73,188.6
300.61.4
2,886.5
3,655.9
434.83,221.1
303.3-3.2
2,920.9
3,661.4
439.13,222.3
312.74.0
2,905.6
3,686.4
443.23,243.3
319.39.1
2,914.9
NOTE.Percent changes from preceding period for selected items in this table are shown intable 8.1.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
December 1986 SURVEY OF CURRENT BUSINESS
Table Lll is on the next page. Table 1.16.Gross Domestic Product of Corporate Business in CurrentDollars and Gross Domestic Product of Nonfinancial CorporateBusiness in Current and Constant Dollars
Table 1.14.-National Income by Type of Income[Billions of dollars]
National income .......Compensation of employees
Wages and salariesGovernment and
government enterprisesOther
Supplements to wages andsalariesEmployer contributions for
social insurance.Other labor income
Proprietors' income withinventory valuation andcapital consumptionadjustmentsFarm
Proprietors' income withinventory valuationadjustment
Capital consumptionadjustment
NonfarmProprietors' incomeInventory valuation
adjustmentCapital consumption
adjustmentRental income of persons with
capital consumptionadjustmentRental income of personsCapital consumption
adjustmentCorporate profits with
inventory valuation andcapital consumptionadjustmentsCorporate profits with
inventory valuationadjustmentProfits before tax
Profits tax liabilityProfits after tax
DividendsUndistributed profits
Inventory valuationadjustment
Capital consumptionadjustment
Net interestAddenda:
Corporate profits after taxwith inventory valuationand capital consumptionadjustmentsNet cash flow with
inventory valuation andcapital consumptionadjustmentsUndistributed profits with
inventory valuation andcapital consumptionadjustments
Capital consumptionallowances with capitalconsumptionadjustment ....
Less: Inventory valuationadjustment
Equals' Net cash flow
1984
3,032.02,214.71,837.0
346.41,490.6
377.7
193.1184.5
236.931.5
40.8
-9.3205.3183.9
-.4
21.8
8.351.7
434
264.7
230.2235.7
95.4140.3
78.362.0
55
34.5307.4
169.3
344.9
91.0
253.9
5 5350.4
1985
3,222.32,368.21,965.8
371.91,593.9
402.4
205.5196.9
254.429.2
38.0
-8.8225.2193.5
2
31.9
7.652.4
44 8
280.7
222.6223.291.8
131.481.649.8
6
58.1311.4
188.9
375.4
107.3
268.26
376.0
Seasonally adjusted at annual rates1985
II
3,201.42,352.11,952.2
368.61,583.6
399.8
204.5195.3
255.533.0
41.9
-8.8222.5191.2
3
31.5
8.151.5
43 4
274.3
215.4213.887.1
126.781.445.3
1.6
58.9311.4
187.2
372.3
105.8
266.6
1.6370.8
III
3,243.42,380.91,976.0
374.21,601.8
404.9
206.1198.8
249.321.6
30.3
-8.7227.7194.4
.1
33.2
7.353.0
457
296.3
235.3229.2
95.8133.481.651.8
6.1
61.0309.7
200.5
388.9
118.8
270.1
6.1382.8
IV
3,287.32,423.62,012.8
381.61,631.1
410.9
209.1201.7
262.129.4
37.9
-8.5232.7199.1
3
34.0
8.354.7
464
285.6
226.4235.8
96.4139.4
82.557.0
-9.4
59.2307.6
189.2
380.0
106.8
273.3
9 4389.4
1986
I
3,340.72,461.52,044.1
387.21,656.8
417.4
212.9204.5
265.324.4
32.7
-8.4240.9206.6
4
34.7
12.857.2
-44.4
296.4
239.0222.5
95.7126.9
85.241.7
16.5
57.3304.9
200.7
390.8
115.5
275.3
16.5374.3
II
3,376.42,480.22,058.8
392.51,666.3
421.3
214.1207.3
289.139.5
47.9
-8.3249.6215.5
1 0
35.1
16.361.3
45 1
293.1
238.3227.7
99.0128.887.541.2
10.6
54.8297.7
194.2
385.5
106.6
278.9
10.6374.9
IIP
3,396.12,507.42,081.1
398.41,682.7
426.3
215.9210.4
277.519.6
27.7
-8.2258.0222.8
-1-136.2
16.261.5
453
302.0
246.5240.4104.4135.9
88.847.2
6.1
55.5292.9
197.6
390.4
108.8
281.6
6.1384.3
Gross domestic productof corporate business
Capital consumption allowanceswith capital consumptionadjustment
Net domestic product ...Indirect business tax and
nontax liability plusbusiness transfer paymentsless subsidies
Domestic incomeCompensation of employees-
Wages and salariesSupplements to wages
and salariesCorporate profits with
inventory valuation andcapital consumptionadjustmentsProfits before tax
Profits tax liabilityProfits after tax
DividendsUndistributed profits-
Inventory valuationadj ustment
Capital consumptionadj ustment
Net interestGross domestic product
of financial corporatebusiness
Gross domestic productof nonfinancialcorporate business......
Capital consumption allowanceswith capital consumptionadjustment
Net domestic product...Indirect business tax and
nontax liability plusbusiness transfer paymentsless subsidies
Domestic incomeCompensation of employees-
Wages and salariesSupplements to wages
and salariesCorporate profits with
inventory valuation andcapital consumptionadjustmentsProfits before tax
Profits tax liabilityProfits after tax
DividendsUndistributed profits-
Inventory valuation
Capital consumptionadj ustment
Net interest
Gross domestic productof nonfinancialcorporate business
Capital consumption allowanceswith capital consumptionadjustment
Net domestic productIndirect business tax and
nontax liability plusbusiness transfer paymentsless subsidies . .. ... .
Domestic income
1984 1985
Seasonally adjusted at annual rates1985
II III IV
1986
I II IIP
Billlions of dollars
2,276.5
253:92,022.6
215.81,806.91,503.51,251.6
251.9
233.7204.7
95.4109.2
67.042.3
55
34.569.6
132.9
2,143.7
239.51,904.1
203.71,700.41,401.11,166.6
234.5
216.7189.374.4
114.972.942.0
5 5
32.982.6
2,414.1
268.22,145.9
230.21,915.71,602.81,336.7
266.1
248.8191.391.899.569.430.2
6
58.164.1
138.9
2,275.1
252.22,023.0
216.81,806.11,491.51,244.1
247.4
224.2170.3
66.5103.874.329.5
g
54.590.4
2,396.6
266.62,130rl
230.41,899.61,592.51,328.6
263.9
242.7182.287.195.176.119.1
1.6
58.964.4
137.5
2,259.1
250.72,008.4
217.11,791.31,482.21,236.9
245.4
218.2161.161.599.680.619.1
1.6
55.590.9
2,441.5
270.12,171.5
231.81,939.71,611.01,343.0
268.0
266.3199.2
95.8103.4
68.335.1
6.1
61.062.4
140.2
2,301.3
253.92,047.4
218.21,829.21,498.41,249.4
249.1
240.8177.570.5
107.072.834.1
6.1
57.289.9
2,459.0
273.32,185.8
235.01,950.81,638.41,366.7
271.7
250.5200.7
96.4104.3
69.934.3
-9.4
59,261.9
144.9
2,314.1
256.82,057.3
221.11,836.21,523.51,271.0
252.5
223.3177.570.3
107.274.632.6
94
55.289.3
2,501.5
275.32,226.2
241.81,984.41,664.71,388.9
275.8
257.9184.1
95.788.470.418.0
16.5
57.361.8
157.9
2,343.6
258.72,084.9
227.61,857.41,542.81,287.4
255.4
225.5156.3
68.787.674.812.8
16.5
52.789.1
2,506.2
278.92,227.3
234.21,993.11,672.01,394.4
277.6
260.2194.8
99.095.882.313.5
10.6
54.860.9
164.7
2,341.5
261.92,079.6
220.11,859.51,545.71,289.2
256.5
225.9165.771.794.085.68.3
10.6
49.787.8
2,541.2
281.62,259.6
244.92,014.71,687.71,406.9
280.8
267.3205.6104.4101.2
77.024.2
6.1
55.559.7
171.2
2,370.0
264.22,105.8
230.01,875.81,557.01,298.2
258.9
232.7176.877.998.979.8
. 19.1
6.1
49.786.1
Billions of 1982 dollars
2,030.8
238.31,792.4
184.51,608.0
2,105.5
249.11,856.4
189.61,666.7
2,094.4
247.71,846.7
188.31,658.3
2,124.6
250.61,874.0
190.81,683.3
2,127.3
253.31,874.0
191.91,682.2
2,141.0
255.71,885.3
192.91,692.4
2,135.3
258.31,877.0
199.31,677.7
2,142.2
260.71,881.6
204.51,677.1
NOTE.Some estimates for the first three quarters of 1986have been adjusted to reflect the retroactive provisions of the
Tax Reform Act of 1986. See page 2.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
6 SURVEY OF CURRENT BUSINESS December 1986
Table 1.11.Command-Basis Gross National Product in ConstantDollars
[Billions of 1982 dollars]
Table 1.17.Auto Output[Billions of dollars]
Gross national product.Less: Net exports of goods and
services .. .ExportsImports
Equals: Gross domesticpurchases .. ..
Plus: Command-basis netexports of goods and services....
Command-basisexports l
ImportsEquals: Command-basis gross
national product .Addendum:
Terms of trade 2
1984
3,489.9
836369.7453.2
3,573.5
-60.3393.0453.2
3,513.2
106.3
1985
3,585.2
1082362.3470.5
3,693.4
-82.7
387.8470.5
3,610.6
107.0
Seasonally adjusted at annual rates1985
II
3,567.6
-108.1361.2469.3
3,675.7
-80.9388.4469.3
3,594.8
107.5
III
3,603.8
-113.8355.8469.6
3,717.6
-88.1381.5469.6
3,629.5
107.2
IV
3,622.3
1320362.9494.8
3,754.3
-110.1
384.8494.8
3,644.2
106.1
1986I
3,655.9
-125.9369.2495.1
3,781.9
-99.0396.1495.1
3,682.9
107.3
II
3,661.4
1539359.8513.6
3,815.3
-114.8
398.8513.6
3,700.4
110.9
mr
3,686.4
1633371.2534.5
3,849.7
-121.3
413.2534.5
3,728.4
111.4
1. Exports of goods and services deflated by the implicit price deflator for imports of goods andservices.
2. Ratio of the implicit price deflator for exports of goods and services to the implicit pricedeflator 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 intable 8.1.
Table 1.19.Truck Output[Billions of dollars]
Truck output l
Final salesPersonal consumption
expendituresProducers' durable equipment ..Net exports of goods and
servicesExportsImports
Government purchases ofgoods and services
Change in business inventories ...
1984
51.148.619.530.1
-5.82.48.24.72.6
1985
54.254.022.632.3
-6.72.79.45.8.1
Seasonally adjusted at annual rates1985
II
52.451.921.131.8
-6.52.79.25.5.5
III
55.555.124.231.4
-6.32.89.25.7.4
IV
57.857.023.235.2743.0
10.56.1.8
1986
I
54.749.621.229.9762.8
10.4
6.15.1
II
56.555.825.432.4
-7.43.1
10.65.4
.7
IIP
57.262.232.233.6-8.8
2.811.65.3
-5.0
1. Includes new trucks only.
Table 1.20.Truck Output in Constant Dollars[Billions of 1982 dollars]
Truck output 1
Final salesPersonal consumption
expendituresProducers' durable equipment..Net exports of goods and
servicesExportsImports
Government purchases ofgoods and services
Change in business inventories...
1984
47.645.218.427.8
-5.42.37.7
4.42.4
1985
49.249.120.729.3-6.1
2.58.65.3.1
Seasonally adjusted at annual rates1985
II
47.947.419.428.9
-6.02.48.4
5.0.5
HI
50.450.022.228.4
-5.82.68.35.2.4
IV
51.650.921.031.2-6.7
2.79.45.4.7
1986I
48.444.019.026.4
-6.82.59.35.44.4
II
49.548.922.428.3
-6.62.79.34.8.6
IIP
49.854.128.129.0
-7.72.4
10.14.6
-4.2
Auto output .. . .Final sales . .. ..
Personal consumptionexpendituresNew autosNet purchases of used autos..
Producers' durable equipment ..New autosNet purchases of used autos..
Net exports of goods andservicesExportsImports .
Government purchases ofgoods and services
Change in business inventoriesof new and used autosNew .. .Used
Addenda:Domestic output of new
autos lSales of imported new autos 2...
1984
103.5101.2105.777.827.919.839.3
-19.5-25.8
4.930.7
1.6
2.22.0.2
86.437.9
1985
114.1110.1115.387.228.123.242.7
-19.5-30.0
6.136.1
1.6
4.04.1-.1
95.345.0
Seasonally adjusted at annual rates1985
II
111.4108.8112.884.828.122.842.4
-19.62855.8
34.3
1.6
2.62.5
.2
91.542.9
III
116.9123.1126.499.526.926.647.5
-21.0
-31.36.4
37.7
1.4
-6.2-9.0
2.8
96.349.7
IV
113.3100.6111.682.728.922.639.7
-17.1
-35.36.2
41.4
1.6
12.716.437
94.849.5
1986I
113.2105.3111.185.725.424.141.7
-17.63216.6
38.72.2
7.97.8.1
98.844.7
II
112.7106.2115.290.824.426.645.8
-19.33716.6
43.7
1.5
6.53.53.0
95.748.3
nr
112.0126.8140.1118.321.828.048.0
-20.0
-42.76.1
48.8
1.5
-14.8-20.8
5.9
94.457.4
1. Consists of final sales and change in business inventories of new autos assembled in theUnited States.
2. Consists of personal consumption expenditures, producers' durable equipment, and govern-ment purchases.
Table 1.18.Auto Output in Constant Dollars[Billions of 1982 dollars]
Auto outputFinal sales
Personal consumptionexpenditures .New autosNet purchases of used autos..
Producers' durable equipment..New autosNet purchases of used autos,.
Net exports of goods andservicesExportsImports
Government purchases ofgoods and services
Change in business inventoriesof new and used autosNewUsed
Addenda:Domestic output of new
autos 1Sales of imported new autos 2...
1984
97.395.696.773.723.021.937.2
-15.3-24.4
4.629.01.5
1.71.5.2
81.535.9
1985
104.6101.5103.380.123.224.139.2
-15.1-27.5
5.432.91.5
3.13.2-.1
87.041.3
Seasonally adjusted at annual rates1985
II
102.3100.4101.278.123.124.139.0
-15.0-26.3
5.231.51.5
1.81.7.1
83.739.5
III
107.6113.4
113.991.222.726.943.6
-16.6-28.8
5.734.51.4
58802.3
88.545.6
IV
102.792.099.475.024.322.536.0
-13.5-31.4
5.536.91.5
10.713.6
-3.0
85.145.0
1986I
103.297.198.777.221.523.737.5
-13:8-27.4
5.833.2
2.1
6.16.0.1
88.640.3
II
101.697.3
101.580.521.025.140.6
-15.6-30.6
5.736.31.4
4.31.82.4
84.242.8
IIIr
98.3115.1122.4103.618.825.442.0
-16.6-34.1
5.139.21.4
16.8-21.7
4.9
80.050.3
1. Consists of final sales and change in business inventories of new autos assembled in theUnited States.
2. Consists of personal consumption expenditures, producers' durable equipment, and govern-ment purchases.
1. Includes new trucks only.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
December 1986 SURVEY OF CURRENT BUSINESS
Table 2.1,Personal Income and Its Disposition[Billions of dollars]
Personal incomeWage and salary
disbursementsCommodity-producing
industriesManufacturing .
Distributive industries ...Service industriesGovernment and
government enterprisesOther labor income ..Proprietors' income with
inventory valuation andcapital consumptionadjustments...FarmNonfarm
Rental income of personswith capital consumptionadjustment
Personal dividend incomePersonal interest incomeTransfer payments. ....
Old-age, survivors,disability, and healthinsurance benefits
Government unemploymentinsurance benefits
Veterans benefitsGovernment employees
retirement benefitsOther transfer payments
Aid to families withdependent children
OtherLess: Personal contributions
for social insuranceLess: Personal tax and nontax
paymentsEquals: Disposable personal
incomeLess: Personal outlays
Personal consumptionexpenditures .
Interest paid by consumers tobusiness
Personal transfer payments toforeigners (net)
Equals: Personal saving . .Addenda:
Disposable personal income:Total, billions of 1982
dollarsPer capita:
Current dollars1982 dollars
Population (mid-period,millions) ...
Personal saving aspercentage of disposablepersonal income ........
1984
3,110.2
1,836.8
577.8439.1442.2470.6
346.2184.5
236.931.5
205.3
8.374.7
446.9455.6
235.7
15.816.4
60.8126.9
14.9112.0
133.5
439.6
2,670.62,501.9
2,428.2
72.3
1.5168.7
2,470.6
11,26510,421
237.1
6.3
1985
3,314.5
1,966.1
607.7460.1469.8516.4
372.2196.9
254.429.2
225.2
7.676.4
476.2487.1
253.4
15.716.7
66.6134:6
15.4119.2
150.2
486.5
2,828.02,684.7
2,600.5
82.6
1.6143.3
2,528.0
11,81710,563
239.3
5.1
Seasonally adjusted at annual rates1985
II
3,298.7
1,953.3
605.0457.3467.7511.0
369.6195.3
255.533.0
222.5
8.176.4
475.3484.1
251.1
15.816.8
66.2134.2
15.3118.9
149.4
456.4
2,842.32,658.7
2,576.0
81.2
1.4183.6
2,550.8
11,89310,674
239.0
6.5
III
3,323.2
1,976.0
608.3460.7472.4521.1
374.2198.8
249.321.6
227.7
7.376.3
475.2491.1
256.5
15.116.7
67.0135.9
15.6120.3
150.7
491.2
2,832.02,712.4
2,627.1
83.8
1.5119.6
2,524.7
11,81910,537
239.6
4.2
IV
3,382.9
2,012.8
617.7467.5478.9534.6
381.6201.7
262.129.4
232.7
8.376.7
480.6493.6
256.8
15.316.4
68.0137.1
15.7121.3
152.9
500.7
2,882.22,756.4
2,667.9
87.0
1.6125.8
2,540.7
11,99910,577
240.2
4.4
1986
I
3,432.6
2,044.1
622.0470.5485.2549.6
387.2204.5
265.324.4
240.9
12.879.1
480.8504.7
263.2
15.517.0
69.1140.0
16.0124.0
158.6
497.5
2,935.12,789.4
2,697.9
89.8
1.7145.6
2,581.2
12,19310,723
240.7
5.0
II
3,483.3
2,058.8
620.8468.8484.3561.3
392.5207.3
289.139.5
249.6
16.381.1
480.1510.1
264.1
16.317.0
70.1142.7
16.2126.5
159.5
504.8
2,978.52,825.5
2,732.0
92.3
1.2153.1
2,625.8
12,34810,886
241.2
5.1
IIP
3,498.8
2,081.1
621.8470.0488.3572.6
398.4210.4
277.519.6
258.0
82^0473.8518.5
269.6
71.0144.3
16.3127.9
160.8
519.0
2,979.92,895.8
2,799.8
94.9
2,605.5
12,324
241.8
2.8
Table 2.2.Personal Consumption Expenditures by Major Type ofProduct
[Billions of dollars]
Personal consumptionexpenditures .
Durable goods....Motor vehicles and partsFurniture and household
equipment .Other
Nondurable goods
Clothing and shoesGasoline and oilOther nondurable goods
Fuel oil and coalOther
ServicesHousingHousehold operation
Electricity and gasOther
TransportationMedical careOther
1984
2,428.2331.2154.5
118.957.8
870.1449.9147.290.7
182.217.9
164.31,227.0
372.2166.684.881.882.0
263.2342.9
1985
2,600.5359.3169.2
126.863.3
905.1469.3155.291.9
188.715.7
172.91,336.1
403.9175.089.985.188.7
290.1378.4
Seasonally adjusted at annual rates1985
II
2,576.0354.0165.3
125.962.8
902.3468.3155.092.8
186.215.3
170.91,319.7
399.1171.486.584.988.1
287.7373.4
III
2,627.1373.3182.8
126.863.7
907.4470.4155.492.4
189.115.5
173.61,346.4
408.6175.188.786.488.9
291.5382.1
IV
2,667.9362.0166.4
130.964.7
922.6477.4158.793.0
193.516.2
177.31,383.2
417.4178.391.387.090.9
302.5394.1
1986
I
2,697.9360.8163.5
132.165.3
929.7484.6161.387.6
196.214.9
181.31,407.4
424.8174.386.388.093.5
307.9406.9
II
2,732.0373.9172.0
135.866.0
928.4490.3165.078.1
194.913.7
181.21,429.8
434.7177.686.990.695.0
312.3410.3
rar
2,799.8414.5204.7
140.069.8
932.8494.0166.674.2
198.013.7
184.31,452.4
442.8181.789.292.596.8
318.1413.0
Table 2.3. Personal Consumption Expenditures by Major Type ofProduct in Constant Dollars
[Billions of 1982 dollars]
Personal consumptionexpenditures
Durable goodsMotor vehicles and partsFurniture and household
equipmentOther
Nondurable goodsFoodClothing and shoesGasoline and oilOther nondurable goods
Fuel oil and coalOther
Services . . .HousingHousehold operation
Electricity and gasOther
TransportationMedical careOther
1984
2,246.3318.9145.6
118.055.3
828.6424.2142.7
95.3166.518.6
147.91,098.7
333.8148.675.473.275.9
230.8309.6
1985
2,324.5343.9156.2
127.759.9
841.6433.4146.095.7
166.517.0
149.51,139.0
342.7151.478.373.181.0
237.8326.2
Seasonally adjusted at annual rates1985
n
2,311.9338.8152.9
126.459.5
841.3434.8146.195.5
165.016.4
148.61,131.8
341.7148.475.173.480.5
237.9323.3
III
2,342.0357.4168.9
128.460.1
843.8435.3146.595.6
166.417.1
149.31,140.8
343.8150.376.973.581.4
238.0327.2
IV
2,351.7347.0152.9
133.061.2
847.2435.1147.596.4
168.217.0
151.21,157.5
345.5153.680.173.582.6
241.3334.5
1986
I
2,372.7345.4149.6
134.361.5
860.6441.1152.496.9
170.217.0
153.21,166.6
347.6148.575.173.483.3
243.0344.3
II
2,408.4357.1156.0
139.162.1
877.3444.2157.1105.4170.518.3
152.31,174.0
350.2150.175.874.384.3
245.0344.5
nr
2,448.0391.6183.5
143.364.9
875.4437.9157.7107.3172.6
19.9152.7
1,181.0352.6152.477.475.186.0
246.7343.2
NOTE.Percent changes from preceding period for selected items in this table are shown intable 8.1.
NOTE.Some estimates for the first three quarters of 198Ghave been adjusted to reflect the retroactive provisions of the
Tax Reform Act of 1986. See page 2.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
8 SURVEY OF CURRENT BUSINESS December 1986
Table 3.2.Federal Government Receipts and Expenditures[Billions of dollars]
Table 3.3.State and Local Government Receipts and Expenditures[Billions of dollars]
ReceiptsPersonal tax and nontax
receipts * .Income taxes.Estate and gift taxesNontaxes
Corporate profits tax accrualsFederal Reserve banksOther .
Indirect business tax andnontax accruals 2Excise taxesCustoms dutiesNontaxes
Contributions for socialinsurance ...
ExpendituresPurchases of goods and services...
National defenseNondefense
Transfer paymentsTo personsTo foreigners
Grants-in-aid to State and localgovernments
Net interest paidInterest paid .
To persons and business ....To foreigners
Less: Interest received bygovernment
Subsidies less current surplus ofgovernment enterprisesSubsidies .Less: Current surplus of
government enterprisesLess: Wage accruals less
disbursementsSurplus or deficit (-),
national income andproduct accounts
Social insurance fundsOther . ....
1984
726.5
309.3302.8
6.1.5
75.916.159.9
55.736.211.97.6
285.5896.5311.3235.076.2
355.0344.310.7
93.6115.6136.4116.619.8
20.8
21.322.1
.8
.2
-170.02.2
-172.2
1985
786.8
345.6338.4
6.5.7
73.617.855.8
56.135.512.28.4
311,5984.9354.1259.494.7
380.3367.013.4
99.0130.5152.1130.821.3
21.6
20.722.2
1.5
-.2
-198.011.0
2091
Seasonally adjusted at annual rates1985
II
755.8
316.6309.2
6.7.7
69.918.251.8
59.335.111.612.5
310.0970.6340.9255.185.8
377.2364.7
12.4
98.3130.9151.9130.821.1
21.0
22.326.2
3.8
1 0
-214.811.0
2259
III
792^6
349.6342.1
6.8.7
76.817.559.3
53.935.212.06.8
312.2990.1360.9265.595.5
384.1369.614.5
100.2129.8152.3130.821.5
22.5
15.117.1
2.0
0
-197.59.7
-207.2
IV
805.8
355.6348.6
6.3,8
77.217.359.9
56.036.612.66.8
317.01,023.4
380.9268.0112.9385.9370.4
15.4
101.6133.9155.7134.221.5
21.8
21.119.5
-1.6
0
-217.615.1
-232.7
1986
I
806.6
350.3343.1
6.4.8
77.816.661.1
52.732.913.16.6
325.81,001.5
355.7266.489.3
389.3378.8
10.5
103.5135.0157.8134.922.8
22.8
18.019.6
1.6
0
-195.018.5
-213.5
II
813.5
355.5347.1
7.6.8
80.115.864.3
50.731.113.36.3
327.21,045.7
367.6278.489.2
396.7381.6
15.0
106.9138.1160.2138.022.2
22.1
36.538.7
2.2
0
-232.219.3
-251.5
mr
833.1
365.8357.7
7.4.8
84.315.269.1
53.431.514.27.6
329.61,030.5
369.3286.882.6
403.0387.515.5
108.0134.7157.8135.022.8
23.0
15.420.9
5.5
0
-197.417.3
-214.6
Table 3.7B.Government Purchases of Goods and Services by Type[Billions of dollars]
Government purchases ofgoods and services
FederalNational defense
Durable goodsNondurable goodsServices
Compensation ofemployeesMilitaryCivilian
Other servicesStructures
NondefenseDurable goodsNondurable goods
Commodity CreditCorporation inventorychange
Other nondurables..Services
Compensation ofemployees
Other servicesStructures
State and localDurable goodsNondurable goodsServices
Compensation of employees-Other services
Structures
1984
733.4311.3235.065.512.2
152.4
94.863.531.357.65.0
76.23.93.1
-3.66.7
62.0
37.224.77.3
422.218.736.2
320.3258.961.447.0
1985
815.4354.1259.474.912.2
166.1
101.167.833.365.06.1
94.74.1
17.2
11.35.9
66.0
39.626.47.4
461.320.838.7
348.3280.168.253.5
Seasonally adjusted at annual rates1985
II
799.0340.9255.173.112.7
163.2
100.567.233.262.76.1
85.84.19.3
2.36.9
65.1
39.525.6
7.4458.120.538.4
345.0277.6
67.454.2
III
829.7360.9265.578.913.0
166.6
100.867.433.465.87.0
95.53.9
17.5
11.46.1
66.5
39.726.87.5
468.820.938.7
351.9282.869.157.3
IV
855.6380.9268.076.611.8
173.4
103.469.733.770.06.1
112.94.5
33.2
28.74.5
68.0
40.028.07.2
474.721.540.0
358.6287.870.854.6
1986
I
836.7355.7266.475.711.8
172.5
103.970.033.868.76.3
89.34.3
11.1
5.65.5
66.7
40.226.67.2
480.921.938.7
365.4292.6
72.755.0
II
860.8367.6278.483.611.0
177.3
104.470.334.172.96.5
89.24.3
11.2
5.55.7
66.4
40.326.17.2
493.322.436.7
372.0297.874.362.1
IIIr
874.0369.3286.886.310.5
182.4
104.770.534.377.77.6
82.64.25.1
-.45.5
66.7
40.526.26.5
504.722.936.6
378.8302.976.066.4
Receipts.....Personal tax and nontax
receiptsIncome taxesNontaxesOther .... .... ...
Corporate profits tax accrualsIndirect business tax and
nontax accrualsSales taxesProperty taxesOther
Contributions for socialinsurance
Federal grants-in-aid ..-Expenditures..
Purchases of goods and services...Compensation of employeesOther
Transfer payments to personsNet interest paid
Interest paid ,Less: Interest received by
government .;.......; ;Less: Dividends received by
governmentSubsidies less current surplus of
government enterprisesSubsidiesLess: Current surplus of
government enterprisesLess: Wage accruals less
disbursements... ..Surplus or deficit ( ),
national income andproduct accounts ...
Social insurance fundsOther ;.
1984
540.8
130.367.551.810.919.5
256.3120.099.736.6
41.193.6
472,4422.2258.9163.393.1
-28.536.9
65.4
3.6
-10.7.6
11.3
0
68.548.919.6
1985
577.5
140.972.256.811.818.2
275.4129.0107.239.1
44.299.0
515.8461.3280.1181.199.2
-26.942.6
69.5
5.2
-12.6.7
13.2
0
61.752.79.0
Seasonally adjusted at annual rates1985
II
571.9
139.872.156.111.717.2
272.7128.0106.138.6
43.998.3
512.6458.1277.6180.598.727 141.9
69.0
5.0
-12.1.7
12.8
o
59.2
December 1986 SURVEY OF CURRENT BUSINESS
Table 3.9.National Defense Purchases of Goods and Services[Billions of dollars]
National defensepurchases
Durable goodsMilitary equipment
Aircraft .MissilesShipsVehiclesElectronic equipmentOther
Other durable goodsNondurable goods
Petroleum productsAmmunitionOther nondurable goods
ServicesCompensation of employees
MilitaryCivilian ...
Other servicesContractual research and
developmentInstallation support lWeapons support 2Personnel support 3 ...Transportation of materiel ....Travel of personsOther
StructuresMilitary facilitiesOther
1984
235.065.555.521.88.57.75.04.08.59.9
12.26.83.12.3
152.494.863.531.357.623.515.86;74.93.43.0
.35.03.02.0
1985
259.474.964.025.99.78.54.74.9
10.410.912.26.63.22.4
166.1101.167.833.365.027.316.97.55.73.83.5
.26.13.52.6
Seasonally adjusted at annual rates1985
II
255.173.162.326.58.38.34.34.8
10.110.912.77.13.22.3
163.2100.567.233.262.726.216.67.35.23.73.4.3
6.13.52.6
III
265.578.967.525.010.29.05.25.4
12.711.413.07.23.32.5
166.6100.867.433.465.827.717.17.76.33.63.6-.17.04.03.0
IV
268.076.665.628.110.48.84.44.99.0
11.011.86.23.22.4
173.4103.469.733.770.029.717.28.26.84.33.7
.26.13.72.4
1986I
266.475.764.228.110.78.04.54.68.3
11.611.86.33.22.3
172.5103.970.033.868.728.717.47.76.94.13.4
.56.33.62.8
II
278.483.671.630.613.29.14.95.08.7
12.011.04.14.32.6
177.3104.470.334.172.932.217.87.87.03.93.6.5
6.53.72.7
IIP
286.886.374.432.413.39.34.95.0,9.5
11.910.53.54.42.6
182.4104.770.534.377.7
33.919.28.98.14.13.8.3
7.64.92.6
Table 3.10.National Defense Purchases of Goods and Services inConstant Dollars
[Billions of 1982 dollars]
1. Includes utilities, communications, rental payments, maintenance and repair, and paymentsto contractors to operate installations.
2. Includes depot maintenance and contractual services for weapons systems, other thanresearch and development.
3. Includes compensation of foreign personnel, consulting, training, and education.
Table 4.1.Foreign Transactions in the National Income and ProductAccounts
[Billions of dollars]
Receipts from foreigners ...Exports of goods and services
MerchandiseDurable goodsNondurable goods
ServicesFactor income *Other
Capital grants received by theUnited States (net)
Payments to foreignersImports of goods and services
Merchandise . ....Durable goodsNondurable goods
ServicesFactor income lOther
Transfer payments (net) . .From persons (net)From government (net)
Interest paid by government toforeigners
gn
1984
382.7382.7224.1125.698.5
158.6100.658.0
0382.7441.4334.4191.1143.3107.053.153.912.21.5
10.7
19.8907
1985
369.8369.8219.6128.291.4
150.291.258.9
0369.8448.6341.7202.6139.1106.950.156.915.01.6
13.4
21.31152
Seasonally adjusted at annual rates1985
II
370.0370.0221.1129.7.91.4148.991.257.7
0370.0447.1340.7199.3141.4106.450.056.413.91.4
12.4
21.1-112.0
III
362.3362.3215.0128.087.0
147.489.457.9
0362.3446.0339.2202.3136.9106.850.356.416.01.5
14.5
21.5-121.2
IV
368.2368.2216.2126.389.9
152.092.359.7
0368.2473.6363.8213.9149.9109.850.559.317.01.6
15.4
21.5-143.8
1986I
374.8374.8219.7133.386.3
155.294.760.5
0374.8468.5358.9224.4134.5109.651.558.112.21.7
10.5
22.8-128.6
II
363.0363.0212.5132.579.9
150.688.262.4
0363.0467.5358.9235.5123.4108.753.355.416.31.2
15.0
22.2-143.0
IIIr
370.8370.8219.2136.183.1
151.687.364.3
0370.8479.7372.7243.8128.9106.949.957.016.61.2
15.5
22.8-148.3
National defensepurchases
Durable goods....Military equipment
AircraftMissilesShipsVehiclesElectronic equipmentOther
Other durable goodsNondurable goods
Petroleum productsAmmunition..Other nondurable goods
ServicesCompensation of employees ...:...
MilitaryCivilian
Other servicesContractual research and
developmentInstallation support 1Weapons support 2Personnel support 3Transportation of materiel ....Travel of personsOther
StructuresMilitary facilitiesOther
1984
219.461.251.218.58.17.05.53.88.3
10.013.68.33.02.3
140.086.958.628.353.021.414.06.14.73.53.1.3
4.72.81.9
1985
235.770.458.822.69.27.55.34.69.7
11.613.68.42.92.2
146.388.359.528.958.024.114.46.75.23.93.4
.25.53.22.4
Seasonally adjusted at annual rates1985
II
233.569.257.923.48.27.35.24.59.4
11.314.19.02.92.2
144.688.359.528.856.323.314.26.54.83.83.3.3
5.63.22.4
III
242.274.662.522.09.97.95.85.1
11.812.114.49.13.02.3
146.988.559.628.958.424.414.56.85.63.63.5
16.33.52.8
IV
239.370.858.623.39.97.74.64.68.5
12.213.17.92.92.2
150.088.459.528.961.626.014.57.25.84.43.6.1
5.43.32.2
1986I
238.771.358.023.410.56.95.04.37.8
13.213.38.13.02,1
148.588.659.628.960.024.914.56.85.74.13.4
.45.63.12.5
II
249.377.163.224.412.67.95.44.78.2
14.014.58.04.12.4
152.188.659.529.163.528.114.76.95.74.03.6
.45.73.32.4
IIP
259.481.067.027.512.58.25.34.7
- 8.914.015.59.04.22.4
156.488.859.729.167.629.615.97.96.64.23.8-.36.54.22.3
1. Includes utilities, communications, rental payments, maintenance and repair, and paymentsto contractors to 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 ConstantDollars
[Billions of 1982 dollars]
Exports of goods and servicesMerchandise ....
Durable goodsNondurable goods
ServicesFactor income xOther
Imports of goods and services.....Merchandise
Durable goodsNondurable goods
ServicesFactor income rOther
1984
369.7222.7127.395.4
147.092.654.4
453.2350.0199.3150.7103.348.754.6
1985
362.3227.4133.593.9
135.080.954.0
470.5368.7216.6152.1101.844.057.8
Seasonally adjusted at annual rates1985
II
361.2227.0134.392.7
134.281.253.0
469.3367.7213.8153.9101.744.157.5
III
355.8223.9133.690.3
132.079.152.9
469.6368.4216.9151.4101.344.057.2
IV
362.9227.8133.494.4
135.180.954.3
494.8391.3226.7164.6103.643.759.8
1986I
369.2232.0142.189.9
137.282.454.8
495.1392.6237.4155.2102.544.358.2
II
359.8227.2142.784.5
132.676.356.3
513.6412.8244.8168.0100.845.555.3
IIP
371.2238.8148.090.8
132.474.857.6
534.5436.0249.5186.498.542.256.4
1. Line 6 less line 13 equals rest-of-the-world product as shown in table 1.8.
1. Line 7 less line 16 equals rest-of-the-world product as shown in table 1.7.
NOTE.Some estimates for the first three quarters of 1986have been adjusted to reflect the retroactive provisions of the
Tax Reform Act of 1986. See page 2.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
10 SURVEY OF CURRENT BUSINESS December 1986
Table 4.3.Merchandise Exports and Imports by Type of Product andby End-Use Category
[Billions of dollars]
Table 4.4.Merchandise Exports and Imports by Type of Product andby End-Use Category in Constant Dollars
[Billions of 1982 dollars]
Merchandise exportsFoods, feeds, and beveragesIndustrial supplies and
materialsDurable goodsNondurable goods
Capital goods, except autos ...AutosConsumer goods
Durable goods ..Nondurable goods ......
Other .. ..Durable goods ,Nondurable goods . ..
Merchandise importsFoods, feeds, and beverages ,Industrial supplies and
materials, excludingpetroleumDurable goods ........Nondurable goods
Petroleum and products ,Capital goods, except autosAutosConsumer goods
Durable goodsNondurable goods
OtherDurable goodsNondurable goods
Addenda:Exports of agricultural
products 1.....Exports of nonagricultural
productsImports of nonpetroleum
products
1984
224.131.6
61.216.944.274.122.513.85.68.1
21.06.4
14.5334.421.3
63.233.429.857.361.156.661.334.626.613.75.48.3
38.4
185.7
277.1
1985
219.624.0
58.316.042.375.624.513.05.17.9
24.16.9
17.2341.721.3
59.730.629.150.564.065.165.236.728.415.96.19.8
29.6
190.0
291.2
Seasonally adjusted at annual rates1985
II
221.124.4
57.716.441.376.524.912.95.17.7
24.86.8
18.0340.720.9
60.731.729.154.562.962.962.935.827.115.86.09.8
29.8
191.3
286.1
III
215.021.6
57.216.141.175.025.012.64.87.7
23.67.0
16.6339.220.7
58.930.228.749.562.366.965.036.728.315.96.29.7
26.7
188.3
289.8
IV
216.223.1
57.715.342.474.324.412.95.17.9
23.87.2
16.6363.822.0
59.529.929.656.567.571.869.638.331.316.96.4
10.5
28.5
187.7
307.3
1986
I
219.724.4
58.116.741.475.723.713.65.18.4
24.212.112:1
358.923.8
62.332.429.940.171.871.373.240.832.516.58.28.2
28.4
191.2
318.8
II
212.520.5
54.315.438.976.023.813.75.28.5
24.112.012.0
358.923.9
60.332.727.631.375.376.475.443.032.416.38.18.1
24.6
187.8
327.5
IIIr
219.221.6
56.315.840.480.022.414.55.78.8
24.412.212.2
372.724.4
61.331.629.732.077.182.679.144.334.816.38.18.1
25.9
193.3
340.8
1. Includes parts of line 2 and line 5.
Table 5.1.Gross Saving and Investment[Billions of dollars]
Gross savingGross private saving
Personal savingUndistributed corporate
profits with inventoryvaluation and capitalconsumption adjustments.......Undistributed profitsInventory valuation
adjustmentCapital consumption
adjustment... ,Corporate capital
consumption allowanceswith capital consumptionadjustment.....
Noncorporate capitalconsumption allowanceswith capital consumptionadjustment
Wage accruals lessdisbursements
Government surplus or deficit( ), national income andproduct accountsFederalState and local ...
Capital grants received by theUnited States (net)
Gross investmentGross private domestic
investment
Statistical discrepancy
1984
573.3674.8168.7
91.062.0
-5.5
34.5
253.9
161.2
0
-101.5-170.0
68.5
0571.4
662.1907-1.9
1985
551.5687.8143.3
107.349.8
-.6
58.1
268.2
169.0
0
-136.3-198.0
61.7
0545.9
661.11152-5.5
Seasonally adjusted at annual rates1985
II
566.8722.4183.6
105.845.3
1.6
58.9
266.6
166.5
0
-155.6-214.8
59.2
0555.0
667.11120
-11.7
III
541.7679.6119.6
118.851.8
6.1
61.0
270.1
171.2
0
-138.0-197.5
59.5
0536.2
657.4121 2-5.5
IV
524.1679.2125.8
106.857.0
-9.4
59.2
273.3
173.4
0
-155.1-217.6
62.5
0525.7
669.5-143.8
1.6
1986
I
583.2708.3145.6
115.541.7
16.5
57.3
275.3
171.8
0
-125.1195069.9
0579.6
708.3-128.6
-3.6
II
539.7713.0153.1
106.641.2
10.6
54.8
278.9
174.4
0
-173.3232258.9
0544.3
687.3-143.0
4.6
nr
517.1650.584.1
108.847.2
6.1
55.5
281.6
176.0
0
-133.3197464.0
0527.5
675.8-^148.3
10.3
Merchandise exportsFoods, feeds, and beveragesIndustrial supplies and
materialsDurable goodsNondurable goods ...
Capital goods, except autos ......AutosConsumer goods
Durable goodsNondurable goods
OtherDurable goodsNondurable goods . .
Merchandise importsFoods, feeds, and beverages......Industrial supplies and
materials, excludingpetroleumDurable goodsNondurable goods
Petroleum and products ..........Capital goods except autosAutos...Consumer goods
Durable goods ...Nondurable goods
OtherDurable goods. .Nondurable goods
Addenda:Exports of agricultural
products 1....Exports of nonagricultural
products ,Imports of nonpetroleum
products
1984
222.729.4
61.016.944.177.421.013.75.87.9
20.26.2
14.0350.020.9
67.535.731.863.768.454.161.535.725.913.95.48.5
35.3
187.5
286.3
1985
227.425.1
60.916.744.282.122.412.95.47.5
23.86.8
17.0368.721.8
68.235.033.259.876.260.865.438.327.116.46.3
10.1
30.4
197.0
308.9
Seasonally adjusted at annual rates1985
II
227.024.8
60.017.142.982.322.812.95.57.4
24.36.7
17.7367.72.1.3
69.036.033.063.374.559.463.737.726.016.56.2
10.2
29.8
197.2
304.4
III
223.922.8
60.717.143.681.722.712.55.17.4
23.46.9
16.5368.421.5
67.534.632.860.174.762.965.338.327.016.56.4
10.1
27.8
196.0
308.3
IV
227.825.7
60.716.144.682.722.012.95.47.5
23.87.2
16.6391.322.5
69.534.934.667.181.164.968.939.229.717.26.5
10.7
30.8
196.9
324.2
1986
I
232.026.2
61.417.743.785.821.313.35.47.9
24.012.012.0
392.622.9
73.438.135.358.187.162.971.741.030.716.68.38.3
29.8
202.2
334.6
II
227.222.3
59.116.742.387.221.313.35.47.9
24.112.012.0
412.822.4
72.039.033.074.290.165.572.642.230.416.18.08.0
26.3
200.9
338.6
IIIr
238.825.5
62.317.544.892.319.914.05.98.1
24.712.4
,12.4436.023.7
73.137.835.487.492.569.274.342.232.115.87.97.9
30.0
208.8
348.6
1. Includes parts of line 2 and line 5.
Table 6.3B.National Income Without Capital ConsumptionAdjustment by Industry
[Billions of dollars]
National income withoutcapital consumptionadjustment. ..
Domestic industriesPrivate industries ; .. ..
Agriculture, forestry, andfisheries
MiningConstructionManufacturing
Durable goodsNondurable goods....
Transportation and publicutilitiesTransportationCommunicationElectric, gas, and sanitary
servicesWholesale tradeRetail tradeFinance, insurance, and
real estateServices
Government and governmententerprises
Rest of the world
1984
3,028.22,980.72,543.6
80.446.0
155.8658.3390.4267.9
245.6109.2.64,0
72.4189.6262.2
385.0520.8
437.147.5
1985
3,185.83,144.72,674.0
76.443.9
165.6671.0401.2269.8
256.4113.266.7
76.5199.4278.8
411.6570.9
470.741.2
Seasonally adjusted at annual rates1985
II
3,163.13,121.92,655.1
80.444.2
165.0660.7398.0262.8
253.5111.967.0
74.6199.2278.6
407.8565.7
466.941.2
III
3,203.63,164.52,691.0
68.742.9
165.2678.5402.9275.6
260.4114.267.1
79.2201.8283.7
414.1575.7
473.539.1
IV
3,249.13,207.22,724.9
75.743.4
169.9682.2405.6276.6
259.4116.266.9
76.4199.2282.1
423.6589.5
482.341.9
1986
I
3,301.53,258.32,769.6
70.744.0
174.8678.2409.0269.2
264.9113.872.0
79.2202.5292.6
438.0603.9
488.743.2
II
3,339.93,305.12,809.7
86.438.2
180.7686.2413.0273.2
264.7112.070.1
82.5201.5288.9
449.0614.2
495.334.9
IIP
3,357.83,320.42,818.1
66.236.4
183.7686.3410.1276.1
268.0113.672.0
82.3208.0294.2
451.2624.1
502.337.4
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
December 1986 SURVEY OF CURRENT BUSINESS 11
Table 5.8.Change in Business Inventories by Industry[Billions of dollars]
Change in businessinventories
FarmNonfarm
Change in book valueInventory valuation
adjustment1Manufacturing
Nondurable goodsWholesale trade
Durable goodsNondurable goodsMerchant wholesalers
Durable goodsNondurable goods ...
Nonmerchant wholesalers
Nondurable goodsRetail trade
Durable goodsNondurable goods
Other.Durable goods .. . . .Nondurable goods
1984
64.17.5
56.662.6
-6.021.217.24.0
14.09.24.8
11.38,13.22.71.21.5
16.09.36.75.43.51.9
1985
11.1-1.112.213.3
-1.1-4.7
3 2-1.5
3.7.7
3.05.0
.74.2
-1.30
-1.27.96.11.85.33.02.3
Seasonally adjusted at annual rates1985
II
19.18.6
10.49.3
1-1-3.3-2.2-1.0
7.41.26.27.71.16.6-.3
.1-.5
.8
.805.52.62.9
III
3.1-.13.2
-3.06.1
-5.3-1.4-3.9-.1282.72.3184.1
-2.41 0
-1.45.3126.53.32.7.6
IV
-3.1-19.9
16.727.5
-10.8-11.7
118.1
3.3.1
3.23.7
.73.0-.36
.219.418.5
.95.82.83.0
1986I
43.82.7
41.222.918.3
-4.84 5-.38.15.22.97.65.81.9.5
-.61.0
30.524.56.07.43.44.0
II
14.53.9
10.5-1.1
11.6.4
364.06.23.23.06.74.72.1-.5
-1.51.0
-4.4-2.7-1.6
8.23.05.2
nr
4.55.8
-10.3-16.3
6.05.0
-3.6-1.5
7.93.84.17.13.53.6.8.3.5
148-19.1
4.31.63.2
-1.6
Table 5.9.Change in Business Inventories by Industry in ConstantDollars
[Billions of 1982 dollars]
1. The inventory valuation adjustment (IVA) shown in this table differs from the IVA thatadjusts business incomes. The IVA in this table reflects the mix of methods (first-in, first-out;last-in, first-out; etc.) underlying book value inventories derived primarily from Census Bureaustatistics. This mix differs from that underlying business income derived primarily fromInternal Revenue Service statistics. Prior to 1973, the two IVA's are the same becauseinformation required for separate estimates is not available.
Table 5.10.Inventories and Final Sales of Business by Industry[Billions of dollars]
Inventories 1
FarmNonfarm . . . .
Durable goodsNondurable goods ..
ManufacturingDurable goodsNondurable goods . . ....
Wholesale trade ...Durable goodsNondurable goodsMerchant wholesalers
Durable goods .. ..Nondurable goods
Nonmerchant wholesalersDurable goodsNondurable goods
Retail tradeDurable goods .Nondurable goods
OtherFinal sales 2Final sales of goods and structures 2
Ratio of inventories to final salesInventories to final salesNonfarm inventories to final salesNonfarm inventories to final sales of goods and
structures
II
859 2790
780245673235341.522591155180.4115764.7
1532100.852.527215.0123
169.382.586889.0
278.9167.5
3.082.804.66
1985HI
8564768
779745623235340.0226 31137179.8115164.8
1532100.352.926 614.711 9
170.581.988689.4
285.1171.3
3.002.734.55
IV
8626740
788546013284338922441145181.9115266.6
1551100.654.526814.7121
176.786.989891.0
289.3172.1
2.982.734.58
I
8558715
784346643179330522251080179.9116563.4
154 9102.052.924914.4105
183.493.290.290.5
289.7170.6
2.952.71
4.60
1986II
8570738
783246563176328.52203108.2180.9117 663.3
1567103.653.124214.0102
183.092.690.490.9
294.3172.8
2.912.664.53
IIIr
8566748
78184648316.9327.22201107.1182.5119563.1
1581105.352.924414.210.2
181.289.192.190.8
300.4176.7
2.852.604.42
1. Inventories are as of the end of the quarter. The quarter-to-quarter change in inventoriescalculated from current-dollar inventories in this table is not the current- dollar change inbusiness inventories (CBI) component of GNP. The former is the difference between twoinventory stocks, each valued at their respective end-of-quarter prices. The latter is the changein the physical volume of inventories valued at average prices of the quarter. In addition,changes calculated from this table are at quarterly rates, whereas CBI is stated at annual rates.
2. Quarterly totals at monthly rates. Business final sales equals final sales less gross productof households and institutions, government, and rest of the world, and includes a small amountof final sales by farms.
Change in businessinventories
FarmNonfarm .
ManufacturingDurable goodsNondurable goods
Wholesale tradeDurable goodsNondurable goods .Merchant wholesalers . ..
Durable goodsNondurable goods
Nonmerchant wholesalersDurable goodsNondurable goods
Retail trade.Durable goodsNondurable goods
OtherDurable goods ..Nondurable goods
1984
59.24.9
54.320.616.63.9
13.48.84.6
10.77.73.02.71.11.6
15.38.86.55.13.31.8
1985
9.019
.1.0.9-4.7
32-1.6
3.4.6
2.84.9.7
4.2-1.5
0-1.5
7.35.61.74.92.82.2
Seasonally adjusted at annual rates1985
II
17.47.89.6
-3.5-2.5-1.0
7.21.16.17.61.06.6-.4
.1-.5
.6
.605.32.42.8
III
.77
1.4-6.1
16-4.5-.6272.12.2
-1.73.9
-2.81.0
-1.75.11.06.13.02.5.5
IV
-5.2-21.3
16.1-10.5
11 1.6
3.4.1
3.33.6
.63.0
. -.3-.5
.317.816.9
.95.42.62.8
1986I
39.92.9
37.0-5.3
47-.56.94.92.06.85.51.3.1
-.6.7
28.322.65.67.13.14.0
II
15.14.1
11.01.0
-4.05.05.12.92.14.64.4
.3
.4-1.5
1.9-4.0-2.5
1.58.92.86.1
IIP
-.38.3
-8.66.5
-3.8-2.7
9.73.56.38.33.25.11.4.3
1.2-13.1-17.1
4.11.23.0
-1.8
Table 5.11.Inventories and Final Sales of Business by Industry inConstant Dollars
[Billions of 1982 dollars]
Inventories l .. . .. ..... .FarmNonfarm
Durable goods ........Nondurable goods
Manufacturing. ..Durable goodsNondurable goods .
Wholesale tradeDurable goodsNondurable goods . . .Merchant wholesalers
Durable goods ..Nondurable goods
Nonmerchant wholesalersDurable goods .Nondurable goods
Retail tradeDurable goodsNondurable goods
Other . . ..Final sales 2Final sales of goods and structures 2
Ratio of inventories to final salesInventories to final salesNonfarm inventories to final salesNonfarm inventories to final sales of goods and
structures ,
II
831.4833
7480431731633293215.211411740109.3647
146895251727.214213.0
1593111821854
253 1157.8
3.282964.74
1985
HI
831.5832
7484431031743278214811301739108.7652
147394752626.513912.6
1605769837862
257 5161.2
3.232914.64
IV
830.277.8
7524433131933252212.011311747108.7660
148394953.426.413812.7
165081 183 9875
2592161.3
3.202904.67
I
8402786
76164396322032392109113017641099665
150096253726.513712.8
172186 7853893
2580159.4
326295478
1986II
8440796
76444394325032412099114317771106670
151 197353826.613313.3
171086 1849915
261 0161.2
3.232934.74
IIP
843.9817
7622435832643225208.911361801111.5686
153298155.126.913413.6
167881 885991.8
2640163.3
3.202894.67
1. Inventories are as of the end of the quarter. Quarter-to-quarter changes calculated from thistable are at quarterly rates, whereas the constant-dollar change in business inventoriescomponent of GNP is stated at annual rates.
2. Quarterly totals at monthly rates. Business final sales equals final sales less gross productof households and institutions, government, and rest of the world, and includes a small amountof final sales by farms.
NOTE.Some estimates for the first three quarters of 1986have been adjusted to reflect the retroactive provisions of the
Tax Reform Act of 1986. See page 2.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
12 SURVEY OF CURRENT BUSINESS December 1986
Table 6.18B.Corporate Profits by Industry[Billions of dollars]
Corporate profits with inventoryvaluation and capitalconsumption adjustments .
Domestic industriesFinancialNonfinancial
Rest of the world . .Corporate profits with inventory
valuation adjustmentDomestic industries
FinancialFederal Reserve banks.. . .Other
NonfinancialManufacturing
Durable goods . . . .Primary metal industriesFabricated metal productsMachinery, except electrical .....Electric and electronic
equipmentMotor vehicles and equipment......Other .. .
Nondurable goodsFood and kindred productsChemicals and allied productsPetroleum and coal productsOther
Transportation and public utilitiesWholesale and retail tradeOther
Rest of the world
1984
264.7233.7
17.0216.7
31.0
230.2199.2
15.416.7
-1.3183.8
87.434.8-2.6
4.64.7
5.29.9
13.152.68.07.5
17.319.732.649.714.131.0
1985
280.7248.8
24.6224.231.8
222.6190.8
21.016.84.3
169.773.028.0
-3.64.13.6
4.96.8
12.145.07.84.7
13.419.133.049.714.031.8
Seasonally adjusted at annual rates1985
II
274.3242.7
24.6218.231.6
215.4183.821.117.14.0
162.768.228.8
-3.94.63.5
5.27.6
11.939.47.65.37.4
19.130.951.112.631.6
III
296.3266.3
25.5240.8
30.0
235.3205.3
21.716.55.2
183.679.028.9
-2.64.54.6
6.04.2
12.350.19.15.3
17.018.736.654.213.930.0
IV
285.6250.5
27.2223.335.1
226.4191.3
23.216.36.9
168.174.526.6
-3.63.04.7
4.36.6
11.647.97.62.8
18.718.932.745.015.935.1
1986
I
296.4257.9
32.5225.5
38.4
239.0200.6
27.817.010.8
172.866.728.1
-2.64.72.2
4.76.4
12.738.69.36.37.3
15.736.852.117.138.4
II
293.1260.2
34.3225.9
32.9
238.3205.4
29.116.213.0
176.376.834
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