Survey of Current Business September 1956
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SEPTEMBER 1956 U. S. DEPARTMENT OF COMMERCE OFFICE OF BUSINESS ECONOMICS SURVEY OF CURRENT BUSINESS DEPARTMENT OF COMMERCE FIELD SERVICE 9 Albuquerque, N. Mex. Memphis 3, Tenn. 321 Post Office Bldg. 22 North Front St. SEPTEMBER 1956 Atlanta 23, Ga. Miami 32, Fla. 50 Seventh St. NE. 300 NE. First Ave. Boston 9, Mass. Minneapolis 2, Minn. U. S. Post Office and 2d Ave. South and Courthouse BMg. 3d St. Buffalo 3, N. Y. New Orleans 12, La. 117 Ellicott St. 333 St. Charles Ave. Charleston 4, S. C. New York 17, N. Y. Area 2, 110 E. 45th St. PAGE Sergeant Jasper Bldg. THE BUSINESS SITUATION. 1 Cheyenne, Wyo. Philadelphia 7, Pa. 307 Federal Office Bldg. 1015 Chestnut St. Increased Business Investment Ahead. *...... 3 Second Quarter Balance of Payments Re- Chicago 6, 111. Phoenix, Ariz. 137 N. Second Ave. flects Further Expansion in International 226 W. Jackson Blvd. Business „ 6 Cincinnati 2, Ohio Pittsburgh 22, Pa. 442 U. S. Post Office 107 Sixth St. anil Courthouse Portland 4, Oreg. Cleveland 14, Ohio * * * 520 SW. Morrison St. 1100 Chester Ave. SPECIAL ARTICLE Dallas 2, Tex. Reno, Nev. 1114 Commerce St. 1479 Wells Ave. Regional Trends in Retail Trade 11 Denver 2, Colo, Richmond 19, Va. j 42 New Customhouse 1103 East Main St. * * * Detroit 26, Mich. St. Louis 1, Mo. 1114 Market St. MONTHLY BUSINESS STATISTICS S-l to S-40 438 Federal Bldg. Houston 2, Tex. Salt Lake City 1, Utah Statistical Index ,,........ Inside back cover 430 Lamar Ave. 222 SW. Temple St. Jacksonville 1, Fla. San Francisco 11, Calif. 311 W. Monroe St. 555 Battery St. Kansas City 6, Mo. Savannah, Ga. 911 Walnut St. 125-29 Bull St. Los Angeles 15, Calif. Seattle 4, Wash. Published by the U. S. Department of Commerce, SINCLAIR WEEKS, 1031 S. Broadway 909 First Ave. Secretary. Office of Business Economics, M. JOSEPH ME EH AN, Director. Subscription price, including weekly statistical supplement, is $3.25 a year; foreign mailings $4.25. Single copy, 30 cents. Send remit- tances to any Department 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 For local telephone listing, consult section made directly with the Superintendent of Documents. Make checks payable devoted to U. S. Government to Superintendent of Documents. SEPTEMBER 1956 uctuon By the Office of Business Economics NATIONAL economy continued to operate at a high rate during August and early September as industries slowed by the July steel stoppage increased their activity. This Sales of Retail Stores was reflected in the July-August advance in nonagricultural Total sales are above a year ago employment, seasonally adjusted, which brought the total back to the June peak. Businessmen program higher rates BILLIONS OF DOLLARS of expenditures for plant and equipment in the coming 18 months of this year as detailed in the new survey through the end of 1956 in this issue. Advancing retail sales are indicative of continued strength in consumer purchasing. 16 ALL RETAIL STORES Higher costs in some sectors and the pressure from rising demand have been reflected in further price increases. Retail sales, seasonally adjusted, reached a record monthly \ rate in May and have since moved up an additional 2 per- cent. The rise from July to August occurred primarily in the nondurable goods groups where sales have been rising throughout the year. Sales for these groups w^ere 8 percent I 2 above last August, reflecting both higher prices and larger volume. Each major kind of business showed an advance in the value of sales. Durable goods store sales, after seasonal adjustment, have been rather stable at $5.5 billion for each of the past 3 months. Sales were moderately below those of last summer 0 I i i i I i » i I i i i I i i i I i i i in dollar terms and off somewhat more in volume as auto- mobile sales continued to run well below last year's record. with nondurables up considerably . In August, the automotive group showed some recovery, on a seasonally adjusted basis, which was largely offset by FOOD, AND EATING AND DRINKING PLACES reduced sales in other durable-goods trades. \ Employment higher The active demand for most types of goods and services has been reflected in a continued strong labor market. With the return of most workers in the steel and related industries following the end of the strike, nonagricultural employment, i i i i i i i i i i i i i i i i i i i seasonally adjusted, regained the peak June volume. By industry, changes in seasonally adjusted employment from and only the automotive group lower June to August were mixed, with gains in Government and service offsetting reductions in construction and manufac- turing industries. Gross average hourly earnings of production workers in AUTOMOTIVE manufacturing continued upward with a 1-cent increase to $1.98 in August; over the past year the advance has been 10 cents, or over 5 percent. Manufacturers7 sales were lower in July largely because of the temporary drop in shipments of primary metal producers. Output of important steel-consuming industries \vas sup- FURNITURE AND APPLIANCE • ported by the use of inventories of steel products built up in preceding months, and by purchases from steel warehouses. 1952 I 1953 I 1954 I 1955 I 1956* MONTHLY AVERAGE FOR QUARTER, SEASONALLY ADJUSTED Inventories held by manufacturers were little changed as *Third quarter 1956 based upon July data the decline in stocks held by durable goods producers was Data: CENSUS BUR. 8 QBE offset by larger inventories of nondurable goods. New orders U. S. Department of Commerce, Office of Business Economics 56 — 34 - I received by manufacturers in July were down substantially from the June total but since sales were down more, the 39001G—56- SURVEY OF CURRENT BUSINESS September 195( backlog of unfilled orders rose nearly $2 billion. All of the goods; however, they include products, such as passengei increase consisted of unfilled orders for durable goods and cars, which are used in part for business purposes. Produc- half of it for primary metals. tion data for selected time periods for many of the individual The flow of personal income in July was fractionally below products included in the major groups in the chart are showr the June rate of $325 billion, seasonally adjusted. When in the accompanying table. allowance is made for wage losses directly associated with the steel work stoppage, however, it is clear that the strong Table 1.—Output of Selected Consumer Products underlying uptrend of both total personal income and labor January- i Percent change income is continuing. July (7 i July months) Product Unit monthly Januarv- Consumer goods output average July 1955 Julv (7 to months). i July 1956 1955 to The aggregate production of consumer commodities is 1955 1956 1955 1956 1956 down so far this year from the comparable period of 1955 due j | entirely to a reduction in output of automobiles. The Durables volume of output of consumer commodities other than Passenger cars Thous 659 441 698 521 -33 — 11 Radios: Home tvpe .. do 314 368 530 673 17 21 automotive in the first 7 months of 1956 was moderately Auto type do 404 199 581 359 -51 —3^ Television sets .. do 344 337 596 536 _2 -If above the corresponding period of a year ago. Month-to- Refrigerators * do 359 303 347 298 — 16 — 14 month changes this year have been confined within narrow Freezers, farm and home * ..do 73 59 59 55 -19 _ £ Ranges electric * do 102 81 117 103 — 21 -\c limits. Washing machines . do 246 380 334 366 54 1C Dryers, clothes _ do 61 118 86 104 93 22 Vacuum cleaners do 207 260 259 310 26 2f Nondurables Output of Selected Consumer Goods Shoes and slippers Mil. prs 41.1 42.2 47.9 49.7 3 4 Men's suits _ _ __ Mil _ 1.0 1.0 1.7 1.8 0 3 AVomen's dresses do 17. 1 16.8 24. 1 23 1 1 _2 —4 INDEX, 1953-55 = 100 Gasoline Mil. bbls 118.5 123. 9 110.3 '117.8 5 1 Cigarettes withdrawals * Bil 38.3 37.2 34. 5 1 35 3 -3 2 150 Hosiery Mil. doz. prs - 10.2 10.0 12.2 11.8 -2 -3 1. Data are for June and January-June and, except for cigarettes, represent only domestic MAJOR HOUSEHOLD shipments of reporting companies. DURABLES Sources: Passenger cars, Automobile Manufacturers Association; radios and television sets, Radio-Eleetronics-Television Manufacturers Association; refrigerators, freezers, and ranges, Retailing Daily; washing machines and dryers, American Home Laundry Manu- facturers' Association; vacuum cleaners, Vacuum Cleaners Manufacturers' Association; IOO shoes and men's and women's apparel, U. S. Department of Commerce, Bureau of the Census; cigarettes, U. S. Treasury, Internal Revenue Service; hosiery, National Association of Hosiery Manufacturers. Sales of new passenger cars in 1956 to date have been PASSENGER CARS running substantially below the record levels of 1955. This combined with exceptionally high stocks of new cars in dealers' 50 hands at the beginning of the year has reduced output for the year to date by more than one-fourth from a year ago. The I 50 combination of reduced production and relatively stable retail sales in recent months has brought a marked decline in dealers' stocks of new passenger cars. FOOD, BEVERAGES, AND TOBACCO MANUFACTURES Household durables steady IOO For major household durables—furniture and floor cover- ings, appliances and heating apparatus, and radio and tele- vision sets—the demand situation has been more favorable.