III

TABLE 2.—Changes in gross national product and its major components, 1955—57[Billions of dollars]ChangeItem1957 i1955 to 19561956 to 1957 iCurrentprices1957pricesCurrentprices1957pricesGross national product or expenditureChange in business inventoriesFinal purchasesPersonal consumption expendituresDurable goodsNondurable goodsServicesGross private fixed investmentResidential construction (nonfarm)Other constructionProducers' durable equipmentNet foreign investmentExports of goods and services.Less: Imports of goods and servicesUnilateral transfersGovernment purchases of goods and services.433.9.0433.9280.435.1140.0105.463.614.219.030.41 Preliminary Federal estimates (excluding by Council Government of Economic sales).. Advisers.NOTE.—Detail National will not security necessarily add to totals because of rounding.State and local3.326.320.62.486.650.545.736.023.0.422.612.8-1.77.37.15.0-1.31.94.41.83.51.9-.23.1.41.12.712.9.412.59.1-1.95.95.02.3-1.81.13.01.92.91.5-.5-2.1-1.01.519.2-4.623.813.21.26.75.52.2-1.11.02.31.92.8.8.16.43.33.33.03.6-4.98.54.8Source: Department of Commerce (except as noted).As manufacturers of finished goods lowered their output and adjustedtheir stocks of purchased materials, sales and new orders of the primarymetals industries fell. Production of these metals declined; producers'inventories nevertheless rose sharply during most of 1957. In the finalmonths of the year, however, further decreases in output halted this accumulation.Rising inventories in a number of other industries also led tocutbacks in production during the final quarter of the year, notably amongproducers of petroleum products, chemicals, and apparel. Output inmanufacturing industries as a whole declined sufficiently below the level ofshipments to result in an over-all reduction of inventories. Total inventoryinvestment, which had absorbed $4.6 billion of output in 1956, dropped toan annual rate of $1 billion in the first three quarters of 1957; and in thefinal quarter of the year inventories were being reduced at an annual rate of$3 billion or possibly more.Consumer ExpendituresIncreased incomes from production, augmented by substantial increasesin pension, social security, and similar payments, provided a basis for higherlevels of consumer expenditures during most of 1957. Consumer demandwas supported also by a further moderate increase in consumer credit,.02.52.4-.5-1.4.2.71.42.0.6.02.71.31.51.216