SURVEY OF CURRENT BUSINESS August 1996 97 Real GDP ...

1 SURVEY OF CURRENT BUSINESSA ugust 199697 ComponentPersonalconsumptionexpenditures Table 2-Methodology UsecSubcomponentDurable and nondurablegoods:Most goods (exceptsubcomponents listedseparately).New autosNet purchases of trucksGasoline and oilFood furnished to employ-ees (including military).Expenditures abroad residents less per-sonal remittances in kindto :Nonfarm dwellings spacerent for owner-occupiedand rent for value of farm in Preparing Estimates ofDeflation, using price based on Components ofthe ConsumerPrice Index (CPI)or the ProducerPrice Index (PPI)Except as noted,CPI; militaryclothing, , BEA price indexand consumer price in-dexes (exchange-rate ad-justed).Real GDPU sing quantity for ExtrapolationNet value of farm housingstock from BEA capitalstock valuationUsed autos, in twoparts: (1) Margin,unit sales fromtrade sources withdealer marginsfrom Census Bu-reau and tradesources; (2) nettransactions, netchange in unitstock of autos heldby consumers byyear of originalsale, valued by de-preciated originalvalue in footnotes at end of for FRASER Federal Reserve Bank of St.

2 LouisAugust 19969$ August 1996 SURVEY OF CURRENT BUSINESSC omponentPersonalconsumptionexpenditures- ContinuedTable 2. Methodology Used in Preparing Estimates of RealSubcomponentServices Continued:Motor vehicle and other re-pair, other purchasedintercity transportation,legal and funeral serv-ices, barbershops andbeauty parlors, nursinghomes, laundries, em-ployment agency fees,accounting and tax returnpreparation services,recreation (except cableTV, casino gambling,parimutuel net receipts,and lotteries), hotels andmotels, and other edu-cation and , dentists, andother professional medi-cal nursery, elementary,and secondary schools,day care, welfare activi-ties, and trade unionsand professional education and hos-pitals, water and othersanitary services, services furnishedwithout payment bybanks, credit agencies,and investment charges and in-vestment counseling,bank service charges,intercity transportationexcept other, and privatehigher servicesDeflation, using price based on Components ofthe ConsumerPrice Index (CPI)or the ProducerPrice Index (PPI)Except as noted, as noted,CPI; physi-cians, as noted,CPI.

3 Publichospitals, as noted, homes, compositeindex of input prices fromthe Health Care FinancingAdmin.; clubs and fraternalorganizations, and othereducation and research,BEA composite index ofinput composite indexes ofinput transportation, BEAindex based on revenueper passenger mile fromthe Dept. of Transportationand trade source, and CPIfor airline fares; privatehigher education, BEAcomposite index of ContinuedUsing quantity for ExtrapolationPaid employee hours ofrelevant financial brokerage charges,BEA orders, derivedfrom volume data fromthe Securities and Ex-change Commissionand trade valuationSee footnotes at end of for FRASER Federal Reserve Bank of St. LouisAugust 1996 SURVEY OF CURRENT BUSINESSA ugust 199699 ComponentPersonalconsumptionexpenditures -ContinuedFixed investmentTable 2.

4 Methodology Used in Preparing Estimates of RealSubcomponentServices Continued:Insurance, private hospitals,religious activities, cableTV, utilities, and travel by resi-dents less expendituresin the United States services: Casinogambling, and parimutuelnet receipts; other hous-ing except hotels andmotels; bridge, etc., tolls;other household oper-ation except repairs andinsurance; travel and en-tertainment card fees;stenographic and repro-duction services; andmoney orders and classi-fied structures:UtilitiesMining exploration, shafts,and buildings buildingsDeflation, using price based on Components ofthe ConsumerPrice Index (CPI)or the ProducerPrice Index (PPI)Except as noted,CPI; privatefor-profit hos-pitals, inthe UnitedStates, as noted, and petro-leum pipelines, , PPIO therLife insurance and religiousactivities, BEA compositeindexes of input prices.

5 Private nonprofit hospitals,composite index of inputprices from the HealthCare Financing travel, BEA compos-ite index of foreignconsumer price indexes(exchange-rate adjusted).Telecommunications, costindex from trade source;railroads, BEA price index;other, cost indexes fromgovernment agencies andtrade , cost index fromtrade source; mines, im-plicit price deflator for non-farm nonresidential , BEA index basedon cost index from tradesource and on CensusBureau price deflator forsingle-family houses underconstruction; structures,cost indexes from govern-ment price deflator for non-farm nonresidential ContinuedUsing quantity for ExtrapolationAuto insurance, premiumsdeflated by CPI; healthinsurance, benefits de-flated by net receipts,gross winnings deflatedby , footage by geo-graphic area from valuationSee footnotes at end of for FRASER Federal Reserve Bank of St.

6 LouisAugust 1996100 August 1996 SURVEY OF CURRENT BUSINESSC omponentFixed investment-ContinuedTable 2. Methodology Used in Preparing Estimates of RealSubcomponentNonresidential producers'durable equipment:Equipment, except autosand telephone and tele-graph and used autosTelephone and telegraph investment:Permanent-site new single-family housing new multi-family housing homesImprovementsBrokers' commissionsProducers' durable , 1 Components ofthe ConsumerPrice Index (CPI)or the ProducerPrice Index (PPI)Domestic compo-nents, exceptas noted, PPI;imported trans-portationequipment, autos, CPI .PPIM ajor replace-ments, price based on OtherImported components, exceptcomputers and transpor-tation equipment, Bureauof Labor Statistics importprice indexes; domesticand imported computers,BEA price index and index from Bureau price deflatorfor single-family housesunder price and alterations,BEA index based on Cen-sus Bureau price deflatorfor single-family housesunder construction andCPI ContinuedUsing quantity for ExtrapolationNumbers of new and usedhouses sold from Cen-sus Bureau and valuationUsed autos, in twoparts: (1) Margin,unit sales fromtrade sources withdealer marginsfrom Census Bu-reau and tradesources.

7 (2) nettransactions, netchange in unitstock of autos heldby BUSINESS byyear of originalsale, valued by de-preciated originalvalue in footnotes at end of for FRASER Federal Reserve Bank of St. LouisAugust 1996 SURVEY OF CURRENT BUSINESSA ugust 1996101 ComponentChange inbusinessinventoriesNet exports ofgoods andservices2 Table 2. Methodology Used in Preparing Estimates of RealSubcomponentNonfarm: Purchased goods,all : Work-in-processand finished goods, and imports ofgoods, net2 Exports and imports ofservices, , 1 Components ofthe ConsumerPrice Index (CPI)or the ProducerPrice Index (PPI)Except as noted, as noted,PPI; someoverhead costitems, ; transpor-tation equip-ment; selectedagriculturalfoods, feeds,and bev-erages; se-lected exportsof industrialand servicemachinery; ex-ports of ironand steel millproducts; andselected im-ports of refinedpetroleum, receipts,medical re-ceipts, andstudents' ex-penditures,CPI.

8 Freightand port ex-penditures andtelecommuni-cations, price based on OtherCrude petroleum, index fromthe Energy InformationAdmin.; computers, BEAprice index and PPI; andimported goods purchasedby trade industries, Bureauof Labor Statistics importprice indexes of unit of Labor Statisticsexport and import price in-dexes; for electric energyexports and imports andpetroleum imports, unit-value indexes based onCensus Bureau valuesand quantities; and com-puters, BEA price indexand transfers and directdefense expendituresabroad, selected deflatorsfor Federal national de-fense, except consumptionof fixed capital (seebelow); passenger fares,Bureau of Labor Statisticsexport and import price in-dexes; travel paymentsand Government pay-ments for miscellaneousservices, BEA compositeindex of foreign consumerprice indexes (exchange-rate adjusted); royaltiesand fees, and other pri-vate services, implicit pricedeflator for final sales todomestic ContinuedUsing quantity for ExtrapolationExports of financial serv-ices furnished withoutpayment,1 paid em-ployee hours of rel-evant financial valuationQuantities and pricesof stocks of coal,petroleum, and nat-ural gas for utilitiesfrom the Energy In-formation and livestockby type, quantitiesand prices from theDept.

9 Of footnotes at end of for FRASER Federal Reserve Bank of St. LouisAugust 1996102 August 1996 SURVEY OF CURRENT BUSINESST able 2. Methodology Used in Preparing Estimates of Real GDP ContinuedComponentGovernmentconsumptione xpenditures andgross investmentSubcomponentFederal national defenseconsumption of generalgovernment fixed national defense,except consumption ofgeneral government nondefense con-sumption of general gov-ernment fixed nondefense, exceptconsumption of generalgovernment fixed and local compensa-tion of general govern-ment and local structuresDeflation, 1 Components ofthe ConsumerPrice Index (CPI)or the ProducerPrice Index (PPI)Selected goods,PPI; utilitiesand commu-nications, CPIand goods, PPI.

10 Rent, utilities,and commu-nications, price based on OtherSome goods, some services,and most military struc-tures, BEA indexes basedon Dept. of Defenseprices paid; some serv-ices, Bureau of Labor Sta-tistics monthly earnings;computers, BEA priceindex and PPI; nonmilitarystructures, cost indexesfrom trade sources andgovernment , cost indexes fromtrade sources and govern-ment agencies; computers,BEA price index and PPI;most services, Bureau ofLabor Statistics indexes from tradesources and quantity for ExtrapolationMilitary compensation, full-time equivalent employ-ment by rank andlength of service; civil-ian compensation, full-time equivalent employ-ment by grade, ad-justed for change frombase year in , full-timeequivalent employmentby grade, adjusted forchange from base yearin hours worked.