SURVEY of CURRENT BUSINESS June 1951 Personal Income Continues to Mirror the High Volume of for Seven Major Regions of the United States
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JUNE 1951 ism U, S. DEPARTMENT OF COMMERCE BUREAU OF FOREIGN AND DOMESTIC COMMERCE OFFICE OF BUSINESS ECONOMICS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis SURVEY OF CURRENT BUSINESS DEPARTMENT OF COMMERCE FIELD SERVICE Albuquerque, N. Mex. Memphis 3, Term. 203 W. Gold Are. 229 Federal Bid*. No. 6 Atlanta 3, Ga. Miami 32, Fla. 50 Whitehall St. SW. 36 NE. First St. Baltimore 2, Md. Milwaukee 1, Wis. JUNE 1951 200 E. Lexington St. 517 E. Wisconson Ave, Boston 9, Mass. Minneapolis 2, Minn. 40 Broad St. 607 Marquette Ave. Buffalo 3, N. Y. Mobile, Ala. 117 Ellicott St* 109-13 St. Joseph St. Butte, Mont. New Orleans 12, La. tents 306 Federal Bldg. 333 St. Charles Ave. PAGE Charleston 3, S. C. New York 4, N. Y. 6 Hudson St. 42 Broadway THE BUSINESS SITUATION 1 Cheyenne, Wyo. Oklahoma City 2, Okla. Automobile Production and Sales 6 410 Federal Office Bldg. 102 NW. Third St. Agricultural Production and Income 7 Chicago 1, HI. Omaha, Nebr. 221 N. LaSalle St. 403 So. 15th St. Cincinnati 2, Ohio Philadelphia 6, Pa. 105 W. Fourth St. 1015 Chestnut St. Cleveland 14, Ohio Phoenix, Ariz. SPECIAL ARTICLES 925 Euclid ATC. 808 N. First St. Dallas 2, Tex. Pittsburgh 22, Pa. The Business Population by Legal Form of Organization. 9 1114 Commerce St. 717 Liberty Ave. The Balance of International Payments—First Quarter Denver 2, Colo. Portland 4, Oreg. of 1951 15 142 New Custom House 520 SW. Morrison St< Detroit 26, Mich. Providence 3, R. I. 230 W. Fort St. 327 Post Office Annex. El Paso 7, Tex. Reno, Nev. 310 San Francisco St. 1479 Wells Ave. MONTHLY BUSINESS STATISTICS . S-l to S 40 Hartford 1, Conn. Richmond 19, Va. 135 High St. 801 E. Broad St* Statistical Index Inside Back Cover Houston 14, Tex. St. Louis 1, Mo. 602 Federal Office Bldg. 1114 Market St* Jacksonville 1, Fla. Salt Lake City 1, Utah 311 W. Monroe St. 109 W. Second So. Kansas City 6, Mo. San Francisco 2, Calif. 911 Walnut St. 870 Market St. Loa Angeles 12, Calif. Savannah, Ga. Published by the U. S. Department of Commerce, CHARLES SAWYER, 312 North Spring St. 125-29 Bull St. Secretary. Office of Business Economics, M. JOSEPH ME EH AN, Louisville 2, Ky. Seattle 4, Wash. Director. Subscription price, including weekly statistical supplement, $3 a 631 Federal Bldg. 909 First Ave. year; Foreign, $4. Single copy, 25 cents. Send remittances to any Depart- ment of Commerce Field Office or to the Superintendent of Documents, United States Government Printing Office, Washington 25, D. C. Special subscription arrangements, including changes of address, should be made directly with the Superintendent of Documents. Make checks payable to Treasurer of the United States. For local telephone listing, consult section devoted to U. S. Government Contents are not copyrighted and may be freely reprinted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis JUNE 1951 THE The greatest expansion in employment during the past twelve months occurred in manufacturing CHANGE, APRIL I960 TO APRIL 1951 - MILLIONS -.5 0 .5 1.0 1.5 2.0 I SITUATION MANUFACTURING GOVERNMENT By the Office of Business Economics CONTRACT JL URCHASING by consumers and new orders placed by CONSTRUCTION business during May both continued below the peaks reached in the first quarter. With employment and personal incomes TRADE rising, the lowered consumer expenditures—which are now about 8 percent in dollar volume above a year ago—reflect TRANSPORTATION AND PUBLIC UTILITIES a sharp advance in personal saving. Personal incomes are one-seventh higher than a year ago, and disposable income FINANCE is also substantially higher. The major characteristic of business in the current quarter SERVICE has been its relative stability at the high reached in the first quarter. Declines in consumer buying and in residential construction have been offset by rising Government procure- MINING ment, and increasing industrial and commercial construction. A substantial amount of production has gone into inven- tories, some for the purpose of expanding military production and some reflecting the effects of the slackened pace of con- sumers7 and distributors' purchasing. The slow-down in retail sales developed at a time when with production workers in durable- shipments to retailers from manufacturers were continuing goods industries showing the larger at a high rate—in some cases beyond what retailers expected to receive when they placed the orders. Distributors have relative increases. endeavored to reduce their inventories and bring them more in line with current sales, but inventories have continued to PERCENT INCREASE rise. The reduction in consumer purchasing has affected both durable and nondurable goods, but it has been greatest in the case of household equipment and furniture. Aggregate orders received by business for producers goods -INSTRUMENTS AND RELATED and military items, however, have continued in excess of PRODUCTS current production. Total unfilled orders held by manu- •MACHINERY facturers have risen further with a large part of the backlogs (INCLUDING ELECTRICAL) representing Government business. This is particularly true of the metal industries, which are receiving the bulk of military orders. Defense orders are being placed at a high •DURABLE-GOODS INDUSTRIES* rate—far above current deliveries. •• FABRICATED METAL PRODUCTS, EXCEPT ORDNANCE Military procurement increasing steadily ...TRANSPORTATION EQUIPMENT (INCLUDING AUTOMOBILES) The major expansionary force is still being provided by the "'PRIMARY METAL INDUSTRIES Government military program which is gradually taking an increasing share of total national output. Total obligations so far this year have averaged over $5 billion a month, with current expenditures approximating half of that rate and "BiypAPER-4(0 , CHEMICALS, AND ALLIED PRODUCTS increasing steadily. The squeeze on supplies of metals is becoming greater, and the National Production Administra- •LUMBER AND WOOD PRODUCTS tion has issued additional orders curtailing the use of scarce EXCEPT FURNITURE materials, including a further restriction on the automotive NONDURABLE-GOODS INDUSTRIES ' industry. •APPAREL AND TEXTILE-MILL PRODUCTS Prices on the average have shown little change over the •FOOD AND KINDRED PRODUCTS past month, with some individual commodities-—raw ma- terials mostly—declining from their post-Korean highs. 0 Specific price control orders are gradually being placed into APRIL effect to replace the earlier "freeze," and these in general 1951 have determined the quotations on most fabricated goods. Retail food prices remain at their peak, but reductions have * INCLUDE INDUSTRIES NOT SHOWN SEPARATELY. BASIC DATA FROM B.L.S. been made in some general merchandise lines to stimulate U. S. DEPARTMENT OF COMMERCE, OFFICE OF BUSINESS ECONOMICS 51-136 sales. In a few lines, where it was desirable to move heavy stocks, substantial price reductions have been made. Digitized for FRASER http://fraser.stlouisfed.org/946782—51- Federal Reserve Bank of St. Louis SURVEY OF CURRENT BUSINESS June 1951 Personal income continues to mirror the high volume of for seven major regions of the United States. Generally, the employment, the upward trend of wage rates, and the ef- distributions of the 1939 and 1947 expansions were simila] fects of high sales and prices upon the flow of income to and the broad pattern of regional distribution under the business. In April, it reached an annual rate of $244 bil- accelerated amortization program follows the same genera lion, about $1% billion higher than the first quarter average. lines, although there are significant divergences. Though the basic influences leading to higher incomes are New England, the Middle East, and Southeast eact still present, their effect upon income has been lessened by account for about the same proportion as in the earlier 2 the leveling off in prices. years. The Southwestern States, however, represent about 15.5 percent of the total, almost entirely due to facilities Employment rising seasonally expansion in Texas, in contrast to an average of 5 percent in Total employment in May reached 61 million workers, 1939 and 1947 for these States. The Central States' share ie showing mainly a seasonal rise of 1 million from the preced- ing month, with most of the gain in agricultural work. Un- Table 1.—Distribution of Facilities Expansion by Major Regions employment remained near the postwar low, declining to an Percent distribution of Amount eligible estimated 1.6 million—slightly less than in April and only manufacturers' ex- under pansion of new plant amortization about half as large as a year earlier. 1 2 Nonagricultural employment has reflected the virtual sta- Region and equipment program bility of business activity in recent months. This follows 1939 1947 Percent of total the substantial expansion during 1950 when resources were being brought into use quickly to meet the upsurge of military United States 100.0 100.0 100.0 and private demand. In comparison with a year ago, em- New England 8.2 7.0 Middle East 28.9 26.1 28. 6 ployment in nonagricultural establishments in April was up Southeast _____ . __ . ._ __ 12.6 13.8 14.4 about 3 million, and more than half of the expansion was in Southwest 4.5 5.7 15.5 Central 37.3 35.8 23.2 manufacturing. As shown in the chart on page 1, most of Northwest 2.1 2.3 5.5 the increases were relatively small in the nondurable goods Far West _ . _ _._ _ 6.5 9.3 5.0 industries, averaging 5 percent during the 12-month period. 1 Based on the 1939 and 1947 Census of Manufactures, U. S. Department of Commerce, In the durable goods industries, the corresponding increase Bureau of the Census. was nearly 20 percent as this section of industry was most 2 Based on tabulations of the Defense Production Administration.