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[Fo; Building Use Only 1 Editor Joan C. Courtless Managing Editor Sherry Lowe Family Economics Review is published each quarter by the Family Economics Research Group. Agricultural Research Service. United States Department ol Agriculture. Washington. D.C. The Secretary ol Agriculture has determined that the publication ol this periodical is necessary in the transaction ol the public business required by law ol this Department. Use ollunds lor thlS periodical has been approved by the Director ol the Ollice ol Management and Budget through March 31. 1987. Contents may be reprinted without permission. but credit to Family Economics Review would be appreciated. Use ol commercial or trade names does not imply approval or con-stitute endorsement by USDA Family Economics Review is lor sale by the Superintendent ol Documents. U.S. Government Printing Ollice. Send subscrip-tion orders. change ol address. and single copy requests to Superintendent ol Documents. U.S. Government Printing Ollice. Washington. D.C. 20402. (See subscription form in back ol this issue.) Suggestions or comments concerning this publication should be addressed to: Joan C. Courtless. Editor. Family Economics Review, Family Economics Research Group. USDNA.RS. Federal Building. ~ Economics Review 1987 No. 1 Contents: Recent Trends in Clothing and Textiles Joan C. Court less Diets of American Women by Income, Spring 1977 and Spring 1985 Katherine S. Tippett and Howard A. Riddick Abstracts Recent Developments in Automobile Financing Measures of Compensation Using Consumer Expenditure Survey Data Spending Patterns of U.S. Households Money Income of Households, Families, and Persons in 1984 Regular Features New Publications Cost of Food at Home Consumer Prices Room 442A. Hyattsville. Md. 20782. Issued February 1987 1 10 18 19 24 26 30 29 32 33 Recent 'fiends in Clothing and 'Iextiles 1 By Joan C. Courtless Family economist Clothing Expenditures and Prices In 1986 apparel and upkeep prices, as measured by the Consumer Price Index, rose 1. 9% over 1985 (table 1), a small increase but still greater than the 0.6% increase in prices for the "all items" category. For the most part, increases or decreases in the various clothing categories were modest; only prices for girls' separates and sportswear increased by as much as 10%. Prices for men's coats and jackets declined for the second consecutive year. Annual spending for clothing and shoes in 1986 is estimated at $682 per person according to preliminary figures for the first three quarters of 1986 (table 2). This amount exceeds 1985 spending by $32 per person; all of this increase can be attributed to increased buying--higher prices were not a factor as in previous years. Since 1982, per capita expenditures for clothing and shoes have increased by $146; only 24% of this increase can be attributed to higher prices. This real increase in clothing purchases by consumers over the last several years may have both demographic and economic explanations: The baby boom cohort is maturing into an age group with higher earnings and spending power; the number of two-earner families is increasing; and the educational level for women entering the work force is higher (increasing their earnings potential) (~). In addition, clothing has been a good value in recent years because, until 1985, prices overall increased faster than prices for clothing (!_;!) • 1 This article is adapted from a paper presented at the Annual Agricultural Outlook Conference in December 1986 in Washington, DC. Trade in Textiles, Apparel, and Footwear Although the total U.S. apparel market expanded at a rate of 4.7% during 1985, imports grew at a rate of 8.8% (~_). Apparel imports had a 43% market share in 1985 (!!!_); shoe imports took 77% of the U.S. market, and sweater imports comprised 70% (1). The trade deficit in textiles and apparel reached $13.6 billion in 1985, the largest deficit in history and 10% higher than in 1984. The combined textile and apparel trade deficit for 1986 will probably exceed this amount; for the first 8 months of 1986 it was 22% higher than during the same period in 1985. The trade deficit for textiles for the January-August 1986 period was up 42% from the same period in 1985; the trade deficit for apparel was 19% higher for the first 8 months of 1986 than during the same period in 1985. Volume of textile and apparel imports (in square yards equivalent) was up 24% for the first 8 months of 1986 compared with the same period in 1985. Corresponding increases in volume by fiber were cotton, 28%; wool, 8%; and manmade, 23%. In February 1986 President Reagan announced a new textiles and apparel program for Caribbean nations. This program is designed to provide increased access to the U.S. clothing market by increasing quotas for apparel assembled in a Caribbean nation from cloth woven and cut in the United States. Participating countries include Jamaica and Haiti, with preliminary agreements (memoranda of understanding) with the Dominican Republic, Trinidad/Tobago, and Barbados. Any increase in Caribbean imports by the United States is to be balanced by a corresponding decrease in import levels for all other countries. In March 1986 President Reagan determined that the global quotas maintained by the Government of Japan on imports of leather and leather footwear, (1) denied benefits due the United States under the General Agreement on Tariffs and Trade (GATT), (2) were unreasonable, and (3) constituted a burden and restriction on U.S. commerce. Consequently, the United States has agreed 1987 No.1 Family Econom ic s Re view Table 1. Percent change in prices of apparel and upkeep, September 1986 1 December 1985 to Group and i tern All i terns ••••••••••••••••••••••••••••••••••••••••••••••••••• Apparel and upkeep ..................................... . Men's and boys' clothing ............................... . Men's Suits, sport coats, and jackets ••••••••••••••••••••• Coats and jackets •.....•.•...•..•.......••.•...•..• Furnishings and special clothing •••••••••••••••••••. Shirts .......................................... • .. • Dungarees, jeans, and trousers ••••••••••••••••••••• Boys' ....................•................... · · · • • • • · Coats, jackets, sweaters, and shirts •••••••••••••••• Furnishings ....................................... . Suits, trousers, sport coats, and jackets ••••••••••• Women's and girls' clothing ............................ . Women's Coats and jackets •..•.......•...........•....•.•... Dresses ........................ · · · · · · · · · · · · · · · • • • • · Separates and sportswear ••••••••••••••••••••••••••• Underwear, nightwear, and hosiery ••••••••••••••••• Suits ............... • · . · · · · · • • • • • · • • • · • · · · · · · · · · · · · · Girls' .........., ....................................... Coats, jackets, dresses, and suits Separates and sportswear ••••••••••••••••••••••••••• Underwear, nightwear, hosiery, and accessories •••• Infants' and toddlers' clothing Other apparel commodities ............................. . Sewing materials and notions ••••••••••••••••••• ~ ••••• Jewelry and lug gage . ................................ . Footwear Men's Boys' and girls' ............•......................... Women's .......................... · • • · · · •. •. • • · · · • • · · · Percent change (annualized) .6 1.9 .1 .4 7.4 -3.5 .3 -.6 -2.2 -1.0 l.O -1.0 -2.7 2.8 2.6 -.4 7.7 5.2 -1.3 4.5 3.1 -2.4 10.2 .1 3.8 4.4 .6 6.0 -1.0 .2 1.6 -4.4 1Consumer Price Index for Urban Wage Earners and Clerical Workers ( CPI-W). Source: Calculated from the CPI Detailed Report, December 1985 and September 1986, U.S. Department of Labor, Bureau of Labor Statistics. 2 Family Economics Review 1987 No.1 to accept compensation from Japan (an estimated value to the United States of $236 million) and to increase duties on $24 million of U.S. imports from Japan. The settlement also involves tariff concessions on $2 • 3 billion worth of U • S • ex ports to Japan in 1984. Because Japan notified GATT of its intent to remove global quotas on leather and leather footwear imports and replace them with new tariff measures, the settlement will increase opportunities for American producers to sell products in Japan. On July 31, 1986, the Arrangement Regarding International Trade in Textiles (Multi-Fiber Arrangements) was extended until July 31, 1991. The new agreement provides that almost all textile imports are available for quota control, including linen, ramie, and silk blends. However, renegotiation of bilateral agreements prior to their expiration date is no longer permitted. Before signing the new trade pact, the United States cancelled bilateral areements with Hong Kong, Taiwan, and South Korea, and replaced them with new agreements limiting annual import growth rates to 1%, 0.5%, and 0.8%, respectively (!). Table 2. Annual expenditures on clothing and shoes 1 Percent of Aggregate Per capita personal expenditures expenditures 2 consunption Year expenditures B'i ll ions Bill ions of of Constant Current Constant Current constant current dollars dollars dollars dollars dollars dollars (1982) (1982) (1982) 1982 ............. 536 536 6.1 6.1 124.4 124.4 1983 ............. 566 577 6.2 6.0 132.6 135.1 1984 ............. 603 622 6.4 6.1 142.7 147.2 1985 ............. 612 650 6.3 6.0 146.0 155.2 1986 3 ............ 647 682 6.5 6.0 155.9 164.3 1 Includes yard goods, but excludes services such as cleaning and repairing clothing and shoes. 2 Calculated by dividing aggregate expenditures for each year by population figures for July of each year. 3Preliminary figures--average of estimates for first 3 quarters of 1986 (i.e., seasonally adjusted quarterly totals at annual rates). Sources: Calculated from U.S. Department of Commerce, Bureau of the Census, 1986, Population estimates and projections, Current Population Reports, Series P-25, and personal communication; and U.S. Department of Commerce, Bureau of Economic Analysis, 1986, Survey of Current Business 66(7) :37 (tables 2.2 and 2 .3), and personal communication. 1987 No.1 Family Economics Review J Supplies, Prices, and Consumption of Fibers World production of fibers was 3% lower in 1985 than in 1984. Natural fiber production (primarily cotton) was down by 7%, decreasing from 58% of all fiber production in 1984 to 55% in 1985 (11). The 1986 U.S. mill consumption of total fibers is estimated at 49.8 pounds per capita. This includes 13.3 pounds of cotton, 0 .6 pound of wool, and 35 .9 pounds of manmade fibers. Per capita use in 1985 was 46.6 pounds, including 11.8 pounds of cotton, 0.5 pound of wool, and 34.3 pounds of manmade fibers. Cotton. The 1986 U.S. cotton crop is expected to be about 10.7 million bales, down 21% from 1985. Cotton prices dropped sharply (from 66 cents to 26 cents a pound) when the 1985 farm bill went into effect on August 1, 1986. Since the world price has been around 23 cents a pound, U.S. cotton will be competitive in international markets. Exports for 1986-87 are estimated at 6.3 million bales, giving the United States a 29% share of world cotton trade (compared with 10% in 1985-86). Although cotton textile imports were up only 2% in 1985 over 1984, during January to August 1986 cotton imports were up 17% over the same period in 1985. Hong Kong, China, Taiwan, and Korea supplied 50% of ~ .S. cotton textile imports during 1985. For the first time since 1970 (14, 15, 19), cotton's share of the apparel market ~ached 40% in 1985. Wool. Mill consumption of apparel wool during the first 6 months of 1986 was 28% above the 1985 level but 4% below the 1984 level. Average U.S. farm prices for wool in 1986 are expected to be unchanged from 1985, about 65 cents per pound (greasy). Imports of raw wool during the first 6 months of 1986 were 26% above imports a year earlier but 4% below the 1984 level. Over 68% of all wool consumed domestically in 1985 was imported. Wearing apparel and carpets or rugs represented 40% and 27% of U.S. wool textile imports in 1985. 4 Family Economics Review 1987 No.1 Mohair. U.S. mohair exports in 1986 are expected to be about 3% higher than in 1985 . During January to June, 71% of mohair exports went to the United Kingdom. World production of mohair is expected to be about 50 million pounds, 13% above the 1985 level. About 14 million pounds, 28% of this amount, will be produced in the United States. Manmade fibers. Shipments of manmade fibers by U.S. producers during the first 8 months of 1986 were 2% above shipments a year earlier (.!1_) and 3% above the 1984 level (~). Demand has increased for acrylic staple fibers, used in active sportswear; polyester staple fibers, used in knit bottomweight apparel; and for nylon, used in carpets. Shipments of polyester filament decreased because of lower demand for textured yarn in slacks, dresses, and skirts. Developments in Fibers and Fabrics The official name for a newly developed American wool/ cotton blend fabric is "Alamera." The method for blending wool and cotton fibers on the cotton spinning system was developed by the American Wool Council. An Alamera label can be used only on fabric made in America from American wool and cotton. The fabric offers a luxurious hand and year-round versatility by combining thermostatic qualities of wool with the comfort of cotton (~_). Intimate blends ranging from 50% cotton/50% wool to 80% cotton/20% wool can be achieved. "Valhalla, 11 a new fabric incorporating 80/20 Supima cotton and American wool, was available in 1986 in men's slacks (!.Q) • A new family of fabrics, to be sold under the certification mark 11 Coo1Max, 11 is designed to regulate body temperature during prolonged physical exertion by increasing the air flow through the fibers to rapidly evaporate perspiration. Hydrophobic polymer fibers (for minimum absorption and maximum ventilation) have four channels that transport moisture away from the body along the fiber's surface. This shape of fiber increases surface area by 20% over that of a round fiber, and encourages air flow for fast moisture evaporation <.V. A dual-denier staple polyester fiber will be used in blended knit fabrics to be sold under the certification mark "Great Feelings." These fabrics (for top-weight knits) must be made of at least 50% Great Feelings fibers. Each fiber consists of two strands, one more dense than the other, which produces a fabric that is loose, airy, soft, lightweight, and shrink resistant. Several manufacturers will feature this fabric in 1987 (_~). Fabrics knitted of "Celebrate" acetate will be monitored and tested on a continuing basis and then licensed if they meet performance specifications. Celebrate acetate is a filament yarn with excellent draping and dyeing characteristics. Fabrics are colorfast, moisture-absorbent, static-free, and have a silky hand <.~). A new cellulosic solvent-spun fiber is being developed in England. Known as Genesis, the new fiber will be classified separately from viscose or rayon. In testing, Genesis has exhibited good wash stability, wet strength, dyeability, static resistance, and absorbency (~_). "Courcel" is a hollow, inflated rayon fiber with a capacity to absorb 40% more water then regular rayon. The hollow core provides good wicking (even after repeated washing and drying) and thermal insulation. Courcel was developed for blending with polyester, acrylic, or cotton--it is not used alone because it lacks yarn strength. In blends with manmade fibers, Courcel adds softness and absorbency; in cotton blends, it also adds a lustrous appearance. J.P. Stevens & Co., Inc., has produced "Thermosoft" yarn, consisting of 50% Courcel rayon and 50% Kodel polyester, for use in thermowear, sports or leisure wear, conventional undergarments, and sleep wear (~_). The Orion division of E.I. du Pont de Nemours & Co. Inc., has decided to stress the functional properties of Comfort 12 for the activewear (including socks) and children's markets. Marketing strategy for Comfort 12 had previously focused on fashion characteristics related to women's wear applications. In addition, Du Pont is broadening its specifications for Comfort 12 certification in women's knitwear to include blends of 75% Comfort 12 with 25% of another fiber such as rayon, silk, linen, or nylon. In the past, such certification indicated 100% Orion content (1_). A new acrylic fiber with a round crosssection has been produced for use in socks, called Acrilanll Hi-Bulk. Socks made of this fiber have 50% longer wear life, superior softness, and superior dyeability, compared with socks knitted of other acrylic fibers (!) • "Thermax" hollowcore polyester, introduced in 1985 and widely accepted for thermo underwear applications, is now being used in gloves, hats, socks, and sock liners. These accessories will be available in fashion colors and designs (1_). USDA Research on Fibers and Fabrics Scientists at Texas Tech University have grown cotton fibers in the laboratory directly from single cotton cells, without growing any other part of the cotton plant. Financed in part under a cooperative research agreement with USDA's Agricultural Research Service, further research will focus on determining the best media for cotton cell fiber differentiation. Test-tube cotton provides an opportunity for studying the growth and development of cotton plants, but it is unlikely to replace field-grown cotton in the foreseeable future (_§). On-going research at USDA's Southern Research Center in New Orleans has developed a method for binding cotton and polyester fabrics with polyethylene glycols, or PEG's. These chemicals can absorb and store heat when surrounding temperatures rise, and then release heat when temperatures fall. By adjusting the amount of the various PEG's 1987 No.1 Family Economics Review 5 incorporated into the fabrics, scientists hope to produce protective materials suitable for firefighters, Artie survival gear, building insulation, draperies, and packaging materials. A previously developed thermal fabric proved unable to withstand laundering or exposure to moisture. Two fabric treatments invented by USDA scientists have recently been granted patents and are available for licensing. One gives cotton/polyester and other blended fabrics a finish that is both permanent press and flame retardant by chemically binding the treatment compounds inside the fabric. The other covers several nonformaldehyde finishing agents that allow cotton fabrics to be dyed after the cloth is made and treated to be wrinkle resistant and permanent press. A process for curing leather by radiation has been developed by scientists at the USDA's Eastern Regional Research Center in Philadelphia. The radiation is less powerful than x rays and poses no hazard to people wearing the cured leather. The leather is covered with a wet film containing chemicals composed of small molecules such as acrylics. A conveyor belt carries the leather through radiation equipment (which has built-in shielding), where an electron beam solidifies the mixture by linking the small molecules into polymer chains that fix to the leather as a tough coating. Advantages to this method include superior scuff resistance for the consumer, and elimination of chemical pollution for the industry (instead of evaporating, the chemicals become part of the coating). Also, because savings in energy costs, plant space, and labor will permit prices to decrease, U.S. products will be more attractive to both domestic and foreign co~sumers of leather, thus reducing a current multibillion-dollar trade deficit in the leather industry. 6 Fa mi ly Econom i cs Rev i ew 1987 No. 1 Trends in Retailing In order to offset the price advantages of imports, the American textile and apparel industries should be able to respond quickly to market needs. Several major textile and apparel manufacturers are cooperating in an effort to reduce the time it takes to place a retailer's order in the store. (Industry average time has been estimated at 66 weeks--including time required to make both the fiber and cloth.) By sharply reducing the time garments spend on warehouse shelves or in transit, apparel prices can become more competitive with imports· Benefits to the retailer would include lower inventory costs and increased opportunities to correctly assess consumer demand, reducing the need for markdowns of slow selling apparel. Methods by which production time can be decreased include the use of computer systems that will measure, color code, and inspect fabric as it comes off the looms, and then transmit this information to eliminate the need for a second inspection, so that the fabric goes directly to the cutting room. Also, computers that design patterns for knitted garments and program the knitting machines decrease total production time by several days (!1) • The popularity and large numbers of off-price, discount, or factory outlet stores have led to frequent sales and price slashing by department and specialty stores in an effort to remain competitive. Many consumers rarely shop "full price" and seldom buy anything that is not on sale· Real value is not easily determined, however. Merchandise in an off-price store can be several seasons old, counterfeit, discontinued goods, or factory overruns. Fake markdowns are sometimes written on the price tag before the item ever reaches the sales floor. A "comparable price" is supposed to mean the item has been sold somewhere at that price. Federal Trade Commission guidelines define deceptive practices (such as phony sales and false savings claims) as those that are likely to mislead the consumer and influence his choice of product· Monitoring and enforcement in several States has led to fines, lawsuits, and statewide rules as to what constitutes a sale. Gro~th in off-price retailing is slowing, however. New retailing approaches will emphasize service and ambiance, and some foreign retail chains will compete with department stores for customers. Retail use of electronic displays is increasing; video tapes help promote products and services on site. Some success has been achieved using electronic means as an aid to buying. In-store ordering of merchandise not in stock, but seen in an electronic catalog , is accomplished with assistance from store sales personnel. Transactional systems, in which consumers complete a sale electronically, are not developing as quickly as informational systems; consumers remain uncomfortable about buying goods through a computer. Some firms that anticipated a market for purchasing via computer are no longer in that business. A chain of television channels, known as the Home Shopping Network Inc., sells between 30,000 and 40,000 different items to viewers through cable and satellite. Most of the merchandise (jewelry, housewares, appliances, china, and electronics) is acquired through liquiq_ations and closeouts, and is advertised as deeply discounted from regular prices. A toll-free number for placing an order is flashed on the television screen as the merchandise is described. Although less than 5% of potential viewers actually purchase, net income amounts to millions of dollars each year. Federal Legislation, Regulations, and Dissemination of Information Related to Textiles and Apparel Both houses of Congress have passed legislation requiring the U.S. Department of Commerce to collect and publish quarterly statistics on the domestic apparel and textile industries, and requiring apparel and textile manufacturers to take part in these surveys. Currently, the Commerce Department collects annual data on these industries, and information needed to administer import restraint programs is often too late to be optimally effective. Since December 1984, the employment of homeworkers in the knitted outerwear industry has been permitted, provided the employer first obtained a certificate from the U.S. Department of Labor. The certification program in knitted outerwear was implemented to permit law-abiding employers to employ homeworkers who want or need to work in their homes, and to enable the Department to effectively enforce the Fair Labor Standards Act (FLSA) with respect to these homeworkers. 2 A review of the investigations conducted by the Department to ensure compliance with the FLSA demonstrated that the knitted outerwear certification program is an acceptable alternative to a total ban on homework. However, homework in the women's apparel, jewelry manufacturing, gloves and mittens, button and buckle manufacturing, handkerchief manufacturing, and embroidery industries remains prohibited by regulations that have not been substantively changed since the forties. In the belief that the existing prohibition against homework in these six industries is counterproductive (employers have little incentive to comply with FLSA wage provisions because their very existence violates the FLSA), the Department proposes to apply the same certification procedure to the remaining restricted industries. The Federal Trade Commission (FTC) amended the Rules and Regulations under the Textile Fiber Products Identification Act, effective July 9, 1986, to include generic names and definitions for two new manufactured fibers. From Celanese Corporation comes "PBI," a manufactured fiber in which the fiber-forming substance is a long-chain aromatic polymer having reoccurring imidazole groups as an integral part of the polymer chain. 11Sulfar, 11 from Phillips Fibers Corporation, is a manufactured fiber in which the fiber-forming substance is a 2 For further information, see "Recent Trends in Clothing and -Textiles, 11 by Joan C. Courtless, Family Economics Review 86(2) :25. 1987 No.1 Family Economics Review 7 long-chain synthetic polysulfide in which at least 85% of the sulfide linkages ( -S-) are attached directly to two aromatic rings. Petitions for new generic names must provide sufficient information to meet the following three criteria established by the FTC: The fiber must have a chemical composition radically different from other fibers, and that distinctive chemical composition must result in distinctive physical properties of significance to the general public. The fiber must be in active commercial use or such use must be immediately foreseen. The grant of the generic name must be of importance to the consuming public at large, rather than to a small group of knowledgeable professionals such as purchasing offices for large Government agencies. Under current Federal Trade Commission (FTC) rules, manufacturers must list only one safe-care method on a label, even if other methods are also safe. Manufacturers are required to test only once any care method they put on a clothing label. When garments are returned to the retailer because they failed to survive recommended cleaning procedures, the retailer usually requests restitution from the manufacturer. To minimize such returns, some manufacturers have been using "dry clean only" labels on garments that are washable because in most instances dry cleaning is preferable to incorrect laundering; exceptions exist, however, and the consumer must rely on the dry cleaner to advise him accordingly. The U.S. Department of Treasury has announced a new "textile fraud hotline" in Georgia, North Carolina, and South Carolina. The number is toll free and available 24 8 Family Economics Review 1987 No.1 hours a day to receive anonymous tips of textile fraud from people in the textile industry or from concerned citizens. The U.S. Customs Service will pay cash rewards ranging from $250 to $2,500 for anonymous information (depending on the circumstances and outcome) and up to $250,000 to persons who come forward. Examples of textile fraud include false country of origin labels, removing country of origin labels and substituting "made in the U.S.A." labels, false description of merchandise (weight, quantity, or fibers) to circumvent quotas, and altering the appearance of merchandise to avoid higher duties. A Fiber and Textile Information Center has been created in the National Agricultural Library (NAL) at Beltsville, Maryland, to maximize service and support for the U.S. Department of Agriculture's research, education, and extension programs. Resources on textile production, use, and care in clothing and in the home or work environment may be accessed through AGRICOLA, the library's computerized database system. In addition, current publications (including over 75 periodicals, newspapers, and research journals that relate to fibers, textiles, clothing, home furnishings, sewing, and needlework) are maintained at the center. A unique feature of the Fiber and Textile Information Center is the collection of historical records of USDA research on natural fiber crops dating back to the early 1900's that was obtained from Agricultural Research Service laboratories. This comprehensive collection contains manuscript materials, reference cards and reprints, photographs, and specimens relating to more than 300 species of plants (excluding cotton). New books, journals, audiovisual materials, and computer software will be identified and acquired as NAL staff and funding permit. Also, historical collections and oral and video histories, which will help enrich the national collection, will be located and acquired. REFERENCES 1. American Textile Manufacturers Institute, Inc., Economic Information Division. 1986. Textile Hi Lights. 14. 15. Textile Organon. P• 156. . 1982. P• 214. 1974. Vol. 45, No. 11, Vol. 53, No. 11, September issue. 16. . 1985. Vol. 56, No. 9, 2. Cressy, Terrence. 1986. E.I. du Pont P· 203. de Nemours & Co. Inc. [Personal commu- 17. . 1986. Vol. 57, No. 7' nication on September 18.] P· 156. 3. Federal Trade Commission. 1986. Textile 18. . 1986. Vol. 57' No. 8, Fiber Products Identification Act; request for establishment of a generic name. Federal Register 51(110) :20803- 20809. 4. Halpern, Mitchell. 1986. U.S. production figures show decline in outerwear, except sweaters. Knitting Times 55(8): 16-18. 5. Hunter, N. Alan. 1986. The apparel market of the 1990s--A demographic view. Apparel World 7 (1): 20-21. 6. Knitting Times. 1985. Vol. 54, No. 11, p. 82. 7. 19 8 6 • Vol. 55 , No. 5 , pp. 87-88. 8. • 1986. Vol. 55, No. 6, p. 72. 9. Lettich, Jill. 1986. Courtauld's research aimed at new fiber to debut next year. Knitting Times 55(8):61-64, 89. 10. • 1986. Heavier constructions give newer knits more tailored looks. Knitting Times 55(9) :77-79. 11. Reagan, Ronald. 1986. Presidential Documents: Increase in the rates of duty on certain articles from Japan; Determination under Section 301 of the Trade Act of 197 4. Federal Register 51(53):9435-9438. 12. Sease, Douglas R. 1985. Move to fight apparel imports is set. The Wall Street Journal, December 17 issue. 13. Slater, Courtenay. 1986. Markets: Sluggish spending. American Demographics 8(5):4. P• 184. 19. . 1986. Vol. 57, No. 9, PP· 205, 226. 20. U.S. Department of Agriculture, Agricultural Research Service. 1986. Electron beam puts a shine on leather. ~ricultural Research 34(2):14. 21. • 1986. Agricultural Research 34(3):16. 22. • 1986. Agricultural Research 34(4):16. 23. • 1986. Quarterly Report of Selected Research Projects. April-June issue. 24. , Economic Research Service. 1986. Cotton and Wool Situation and Outlook Report. CWS-45. 25. • 1986. Cotton and Wool Situation and Outlook Yearbook. CWS-46; and personal communication with John Lawler. 26. , The National Agricultural Library. 1986. Information Alert, April 30 issue; and personal communication with Kate Hayes. 27. U.S. Department of Commerce, International Trade Administration. 1986. Textile and Apparel Import Report; and personal communication with Shirley Hargrove. 28. U.S. Department of Labor, Employment Standards Administration. 1986. Employment of homeworkers in certain industries. Federal Register 51(162): 30036-30043. 29. U.S. Department of the Treasury, United States Customs Service. 1986. Customs regulations amendments relating to Caribbean Basin initiative and generalized system of preferences. Federal Register 51(110) :20810-20811. 1987 No.1 Family Economics Review 9 Diets of American Women by Income, Spring 1977 and Spring 1985 By Katherine S. Tippett and Howard A. Riddick Home economist and nutritionist Nutrition Monitoring Division Human Nutrition Information Service Food selections made by low-income women in 1985 differed somewhat from those made by high-income women. Nevertheless, both lowand high-income women had nutrient intakes that were above the Recommended Dietary Allowances (RDA) for 8 of 15 nutrients examined and below the RDA for vitamin B6 , calcium, magnesium, iron, folacin, and zinc. In general, mean intakes by women for nutrients that were below the RDA in 1977 were also below the RDA in 1985. The findings presented here are from the Continuing Survey of Food Intakes by Individuals (CSFII) conducted by USDA's Human Nutrition Information Service (HNIS). 1 The results are group means for women 19 to 50 years of age based on 1 day of dietary information collected by personal interview in the spring of 1985. The income categories used in this article are based on the poverty guidelines provided by the U.S. Department of Health and Human Services (7). Women living in households with before-taxincomes for the previous year at or below 130% of the poverty guidelines are classi-fied in this article as low income, those with incomes between 131% and 300% of the guidelines are classified as middle income; and those with incomes of greater than 300% of the guidelines are classified as high income. The data exclude 191 women living in households that did not report income. Black women accounted for 30% of the low-income group, 5% of the middle-income group, and 3% of the high-income group. (For a comparison of diets of black and white women, see box on p. 11.) 1More detailed information about the purpose, methodology, and results of the CSFII may be found in references l• ~. and 6. 10 Family Economics Review 1987 No.1 The CSFII data are compared with data collected from women of the same ages in the spring of 1977 as part of USDA's Nationwide Food Consumption Survey 1977-78. 2 Counts of women for 1977 and for 1985 are as follows: Income 1977 1985 (number) Low ..•....•...... Middle .........•• High ............ . 350 693 814 293 512 508 The nutrient contents of foods reported in the survey were estimated using nutrient data developed by the HNIS' Food Composition Research Branch (!_, 1). Nutrient intakes in 1977 reflect food composition data available at the time of the 1977 survey. Those in 1985 reflect the availability of new data, as well as certain changes in the nutrient content of foods attributable to new varieties and species, and new enrichment and fortification levels of foods on the market. The 1980 RDA were used to evaluate both the 1977 and the 1985 data. FOOD AND NUTRIENT INTAKES IN 1985 Food intakes. Food intakes by women were measured in two ways--the percentage of respondents using selected food items (table 1, p. 12) and mean intakes (in grams) of food ingested (table 2, p. 13). Considering both of these measures, low-income women had higher intakes of meat, poultry, and fish; and eggs, but lower intakes of milk and milk products; vegetables; fruits; fats and oils; sugars and sweets; and beverages than highincome women. This generalization, however, obscures differences within food groups: Within the meat, poultry, and fish food group, low-income women compared with high-income women had higher mean intakes of all meat, poultry, and fish subgroups except meat mixtures. Low-income women had lower mean intakes of meat mixtures than 2 For information on the survey, see "The 1977-78 Nationwide Food Consumption Survey," by Robert L. Rizek, Family Economics Review, fall 1978. pp. 3-7.) DIETS OF BLACK AND WHITE WOMEN In the CSFII, information on race was self-reported. Of the 1, 486 women who reported race, 1, 275 were white, 143 were black, and 68 were of another race. Of the white women who reported income, 16% were low-income; of the black women, 68%. In several categories of food and nutrient intakes, blacks and whites differed. Although some of the differences may be attributable to income rather than to race, the small sample of blacks precludes direct comparisons of blacks and whites by income group. Group means in small sample sizes may be affected by particularly high or low intakes of certain foods. Therefore, the food and nutrient intakes for black women presented below should be used with caution. In 1985, the mean intake by black women of meat, poultry, and fish was 226 gm, compared with the mean intake by white women of 172 gm. Meat, poultry, and fish was reported by 93% of black women, compared with 88% of white women. Black and white women had similar intakes of beef. Black women had higher intakes of pork; poultry; fish and shellfish; and frankfurters, luncheon meats, sausages, and slightly lower intakes of meat mixtures than white women. The mean intake of milk and milk products by black women was substantially lower than that for white women (80 gm and 221 gm, respectively). Fewer than one-half of black women compared with four-fifths of white women, reported using a milk product on the surveyed day. Almost all of the fluid milk drunk by black women was whole milk (49 gm), rather than lowfat or skim milk (4 gm). White women reported drinking both whole and lowfat or skim milk, although their mean intake of low fat or skim milk was higher than their mean intake of whole milk (88 gm and 66 gm, respectively). The mean intake of eggs by black women was 26 gm, compared with 17 gm by white women. A higher proportion of black than of white women reported using eggs (36% vs. 23%). Black women had lower intakes of vegetables than did white women (128 gm and 176 gm, respectively). Of the black women, 69% reported vegetables; of the white women, 85%. Among the vegetable subgroups, black women had a higher intake of dark green vegetables than did white women. The mean intake of fruits by black women was 107 gm, compared with the mean intake of white women of 114 gm. Fruits were reported by 37% of black women and 46% of white women. The mean intake of grain products by black women was 247 gm compared with 200 gm for white women. A lower percentage of black (90%) than white (94%) women, however, reported a grain produc t on the surveyed day. Black women had lower intakes than white women of fats and oils, sugars and sweets, and total beverages. Compared with white women, black women had lower intakes of coffee, tea, and low-calorie carbonated soft drinks, and higher intakes of fruit drinks and ades. Black and white women had similar intakes of regular soft drinks. Mean intakes by women of both races were above the RDA for protein, vitamin A, ascorbic acid, thiamin, riboflavin, niacin, vitamin B 12 • and phosphorus. Mean intakes of both groups were below the RDA for the following: White (percentage of RDA) Food energy ••••••••••••• 81 82 Vitamin B6 .............. 58 62 Calcium ................. 58 82 Magnesium ••••••••••••••• 60 73 Iron .................... 64 61 Folacin •••••••••••••••••• 47 51 Zinc .................... 61 59 Vitamin E ............... 93 98 In 1985, black women obtained 17% of their food energy from protein; white women, 16%. The contribution of fat to food energy was also similar--36% for black women and 37% for white women. The mean intake of fiber by black women was 10 gm; by white women, 12 gm. Between 1977 and 1985 both black women and white women increased their mean intakes of fish and shellfish, meat mixtures, total grain products, all grain products subgroups, and total beverages , and decreased their mean intakes of meat, whole milk, eggs, vegetables, and fruits. The mean intake of skim milk by white women increased by 60% between 1977 and 1985, but the mean intake of skim milk by black women did not change. 1987 No.1 Family Economics Review 11 Table 1. Percentage of women 1g to 50 years of age using selected foods in a day, by household income level, spring 1985 Food group Meat, poultry, and fish •••••••••••••••••••••• Beef ...................................... . Pork Frankfurters, luncheon meat, sausages ••••• Poultry ..... ............................... . Fish and shellfish ......................... . Mixtures 1 •••••••••••••••••••••••••••••••••• Milk and milk products ••••••••••••••••••••••• Fluid milk Whole milk Skim milk .....••................•..•••... Cheese Yogurt Cream/ milk desserts ....................... . Eggs ••.•.•••••••••.•. • • • • • • • · • • • • • • • • • • • • · • • • Legumes, nuts, seeds ....................... . Vegetables .............................. • ... . White potatoes ............................. . Tomatoes .............................•..... Dark green . ............................... . Deep yellow ............................... . 0 th er ..................... • • · · · · · · · · · · · · · · · Fruits Citrus fruits and juices •••••••••••••••••••• Other fruits and juices ••••••••••••••••••••• Grain products ............................•.. Yeast breads, rolls ••••••••.•••••••••••••••• Other baked goods ......................•.. Cereals, pasta ..•........................... Mixtures 2 •••••••••••••••••••••••••••••••••• Fats and oils . ..... •• ......................... Sugars and sweets •••••••••••••••••••••••••••• Beverages ................................... . Alcoholic beverages ........................ . Coffee ..................................... . Tea ...•............ ........................ Fruit drinks and ades •••••••••••••••••••••• Carbonated soft drinks ••••••••••••••••••••• Regular ...•..................•.•..••..... Low-calorie •..........•.•...•............. Low 89 24 24 31 22 11 30 68 46 31 13 27 1 19 29 17 74 44 19 6 5 54 36 15 25 93 67 40 38 25 58 54 91 7 47 26 24 49 41 9 Income Middle (percent) 90 24 20 27 20 12 36 77 52 26 27 34 5 25 27 22 87 46 30 10 10 71 48 27 33 94 74 54 31 28 66 55 91 14 48 33 12 55 36 21 1 Mixtures that are mainly meat, poultry, or fish, such as stews and sandwiches. 2 Mixtures that are mainly grains, such as pizza and pasta with sauce. High 87 22 20 20 19 11 44 83 52 23 31 38 6 29 21 24 85 44 30 10 12 69 55 30 42 95 70 62 30 28 67 56 96 22 60 34 11 58 34 27 Source: Unpublished data from the Continuing Survey of Food Intakes by Individuals, 1985, Human Nutrition Information Service, U.S. Department of Agriculture. 12 fam i ly Economics Review 1987 No.1 Table 2. Mean intakes by women 19 to 50 years of age, of selected foods in a day, by household income level, spring 1985 Food group Meat, paul try, and fish ..................... . Beef Pork Frankfurters, luncheon meat, sausages •••• Poultry ......... .......................... . Fish and shellfish ..••....•................. Mixtures 1 ••••••••••••••••••••••••••••••••• Milk and milk products ••••••••••••••••••••••• Fluid milk Whole milk •.......•...................•. Skim milk •••.•..•.••....•..••.....••.... Cheese Yogurt Cream/ milk desserts ...................... . Eggs •••••••••.••••.•• · • • • • • • • • • • • • • • • • • • • • • • • Legumes, nuts, seeds ....................... . Vegetables .................................. . White pot a toes ...•.•.•....•..•.•........... Tomatoes .••...... . ........................ Dark green . .............................. . Deep yellow .............................. . Other ............................... · · · · · · Fruits Citrus fruits and juices ••••••••••••••••••• Other fruits and juices •••••••••••••••••••• Grain products .............................. . Yeast breads, rolls ....................... . Other baked goods ....................... . Cereals, pasta .. .......................... . rdixtures 2 ••••••••••••••••••••••••••••••••• Fats and oils ................................ . Sugars and sweets ......... .................. . Beverages ... ................ · · · · · · • • • · · • · • · · · Alcoholic beverages . ...................... . Coffee . .............................. • • · · · · Tea ••••••••••••••••••••••••••••••••••..••• Fruit drinks and ades ••••••••••••••••••••• Carbonated soft drinks •••••••••••••••••••• Regular ................ · • • · • • • · · · · · · · • • • Low- calorie ............................. 188 31 16 15 29 13 77 163 121 77 43 12 1 20 22 21 144 58 13 10 3 60 86 36 49 234 47 42 61 84 10 15 819 50 276 150 90 253 210 42 Incane Middle High (grams) 180 179 27 26 14 13 15 9 19 22 14 12 84 94 212 206 151 136 65 50 86 86 14 20 11 11 22 28 19 16 20 19 177 186 47 48 19 21 12 10 7 8 91 99 121 140 59 68 62 72 210 209 52 44 48 54 39 32 71 79 16 21 23 18 919 1,019 94 110 309 394 174 169 57 38 285 309 164 170 118 138 1 Mixtures that are mainly meat, poultry, or fish (such as stews and sandwiches) . 2 Mixtures that are mainly grains (such as pizza and pasta with sauce). Source: Unpublished data from the Continuing Survey of Food Intakes by Individuals, 1985, Human Nutrition Information Service, U.S. Department of Agriculture. 1987 Ho. 1 Fam ily Ec onomics Review 13 did high-income women (77 gm and 94 gm, respectively). 3 Also, a lower proportion of low-income than high-income women reported meat mixtures on the surveyed day (30% and 44%, respectively). Low-income women reported lower intakes of all milk and milk products (fluid milk yogurt, cream and milk desserts, and cheese) than did high-income women. One exception, within the fluid milk subgroup, was the higher mean intake of whole milk by low-income women (77 gm) than by high-income women (50 gm). Low-income women reported a higher intake of eggs than did high-income women (22 gm and 16 grams, respectively). Eggs were reported by 29% of the low-income women, compared with 21% of the high-income women. Intakes of vegetables by low-income women were lower than those for high-income women. This was generally true for all subgroups except white potatoes, for which the mean intake by low-income women was slightly higher than that of high-income women; and dark-green vegetables, for which the mean intake by low- and high-income women was the same. (Intakes of vegetables exclude vegetables eaten as part of meat or grain mixtures.) The mean intake of fruits by lowincome women (86 gm) was lower than that of h igh-income women (140 gm). Fruits were reported by 36% of the low-income women, compared with 55% of high-income women. This pattern was true for both citrus and noncitrus fruits and juices. The proportion of low- and high-income women reporting grain products was similar. However, the mean intake of grain products by low-income women was higher than that of women in the high-income group (234 gm and 209 gm, respectively). Low-income women compared with high-income women had higher mean intakes of cereals and pasta and grain mixtures and lower mean intakes of baked goods other than yeast breads and rolls. 3 Meat mixtures--such as stews, casseroles, sandwiches (including hamburgers), and frozen dinners--are mixtures having one or more types of meat, poultry, or fish as a major ingredient. 1• fa mJ.ly Economi cs Re vi ew 1987 No.1 Low-income women compared with highincome women had lower intakes of total beverages and of the beverage subgroups for alcohol, tea, coffee, and low-calorie soft drinks; and higher intakes of fruit drinks/ ades and regular soft drinks. Women in all income groups reported higher intakes of regular compared with low-calorie soft drinks, but the difference in intakes between the two categories of soft drinks was much smaller for the high-income women. Nutrient intakes. Low-income women reported food intakes that were lower in food energy than those reported by highincome women. Women in all three income levels had mean food energy intakes that were below the midpoint of the RDA: -In-co-m-e Calories Percentage of RDA Low •••••.••• 1,598 78 Middle ••••••• 1,665 81 High ..•.... · 1,736 86 Mean intakes by women in all three income groups were above the RDA for protein, vitamin A, ascorbic acid, thiamin, riboflavin, niacin, vitamin B12 , and phosphorus; and below the RDA for vitamin B6, calcium, magnesium, iron, folacin, and zinc (table 3). Intakes of vitamin E were below the RDA for low-income women but not for middle- or high-income women. Of the six nutrients below RDA for all income groups, low-income women had lower intakes of vitamin B6, calcium, magnesium, and folacin than did high-income women. This may reflect some of the differences in food consumption mentioned earlier: Lower intakes of dairy products, fruits, and vegetables for low-income women than for high-income women. Intakes below RDA are not necessarily inadequate because the RDA, to be safe, are set above the needs of most people. However, the risk of having an inadequate intake is greater for groups of people with intakes well below the RDA (!). The mean copper intake of low-income women was 1 • 0 m g; of middle-income women, 1.1 mg; and of high -income women, 1.1 mg. All of these intakes were well below the range of intakes (2.0 mg to 3.0 mg) suggested by the Food and Nutrition Board, National Academy of Sciences (1). The CSFII provides data for several nutrients and dietary components for which no RDA are published. The mean intake of dietary fiber was lower for low-income women (10 gm) than for high-income women (13 gm), reflecting low-income women's lower intakes of vegetables and fruits, which are the largest source of dietary fiber. Low-income women had a mean cholesterol intake of 341 mg, compared with 305 mg for middleincome women, and 295 mg for high-income women. Cholesterol is provided by foods of animal origin such as eggs, beef, poultry, and milk. Grain products containing eggs and milk or milk products also include cholestrol. Women at all three income levels obtained 16% of their food energy from protein. Lowand middle-income women obtained 36% of their food energy from fat; high-income women obtained 38%. CHANGES BETWEEN 1977 and 19854 Food intakes. Within the meat, poul-try, and fish food group, survey results indicate two major shifts by women ages 19 to 50 between 1977 and 1985. First, previous food consumption surveys have shown the consumption of meat (beef; pork; frankfurters, sausages, luncheon meats; lamb, veal, game; and organ meats) is higher at successively higher income levels. In 1985, however, high-income women reported 25% less meat (in grams) than low-income women, compared with 1977 when high-income women reported 20% more meat (see figure, p. 16.). Although meat intake by all three income groups was lower in 1985 than in 1977, the decline was greatest for "Changes in data collection procedures, probing techniques, and food composition data between 1977 and 1985 may have affected increases or decreases in the intake of certain foods and nutrients. Table 3. Mean intakes by women 19 to 50 years of age, of selected nutrients below the 1980 RDA, by household income level, spring 1985 and spring 1977 Vitamin Calciun Magne- Iron Folacin Zinc Vitamin Incane level B6 sium E (percentage of liD\) 1985 Low •••••• • • • • • • • • • • • • • • • • 58 66 63 62 45 61 83 Middle ................... 62 79 71 62 52 59 102 High ...... · · · · · · · • • • • • • • • 64 84 77 61 53 61 102 All ...................... 61 78 72 61 51 60 97 1977 Low •••••• • • • • • • • • • • • • • • • • 57 67 65 55 * * * Middle ................... 58 71 70 55 * * * High .••... · • · • • • • • • • • • • • • 63 71 75 59 * * * All ...................... 60 69 71 56 * * * *Not examined in NFCS, 1977-78. Source: u.s. Department of Agriculture, Human Nutrition Information Service, .1~85, Nationwide Food Consumption Survey, Continuing Survey of Food Intakes by IndiVIduals: Women 19-50 Years and Their Children 1-5 Years, 1 Day, Report No. 85-1, 102 PP· 1987 No.1 Family Economics Review 15 Meat: Mean Intakes (grams) by Women 19-50 Years, by Income, One Day, Spring 1977 and 1985 91 Low-income Middle-Income High-income Unpubllehed d•te from CSFII-85 end HFCS 77-78, USDA, HNf8 -1977 ~1985 the high-income group (table 4). Second, the data indicate a shift by women in all three income groups away from meat reported separately (beef; pork; lamb, veal, and game; and frankfurters, sausages, and luncheon meats) toward mixtures such as stews and sandwiches . Mean intakes of meat mixtures increased by 33% for low-income women and by 38% for high-income women. Between 1977 and 1985 women in all three income groups decreased their mean intake of whole milk and increased their intake of lowfat or skim milk. Despite this shift, low-income women in 1985, as in 1977, continued to have higher intakes of whole milk than of lowfat or skim milk. Middle-income and high-income women, however, had higher intakes of lowfat or skim milk than of whole milk--a reversal of their 1977 pattern . The mean intakes of eggs by all income groups decreased. Intakes of vegetables and fruits decreased for both the low-and high-income women but increased slightly for middle-income women. Women in all income groups increased their intakes of grain products and beverages. Within the grain products group, the category with the largest gain for all income groups was grain mixtures such as pizza, spaghetti, and macaroni and cheese. Within the beverage group, carbonated soft drinks 16 Family Economics Rev iew 1987 No.1 increased for women in all three income groups. Nutrient intakes. Food energy intakes by women in all three income groups were higher in 1985 than in 1977. Nutrient intakes by women of vitamin B6, calcium, magnesium, iron, folacin, and zinc were below the RDA in 1977 for women in all three income groups and were still below the RDA in 1985 (table 4). Thiamin intakes for middle- and high -income women were slightly below the RDA in 1977 but above the RDA in 1985. Of the nutrients below RDA in both 1977 and 1985, most improved were the nutrient intakes of calcium by middle- and highincome women and iron intakes by low- and middle-income women. REFERENCES 1. Hepburn, Frank N. 1982. The USDA National Nutrient Data Bank. American Journal of Clinical Nutrition. Vol. 3 5 , No. 5 (supplement), pp. 1297-1301. 2. Posati, Linda P., and Robert L. Rizek. Nutrient Data Base for Continuing Food Intake Survey. Family Economics Review 1985(3):4-16. 3. Rizek, Robert L., and Linda P. Posati. Continuing Survey of Food Intakes by Individuals. Family Economics Review 1985(1):16-17. 4. National Academy of Sciences, National Research Council, Food and Nutrition Board. 1980. Recommended Dietary Allowances, 9th edition, 18 5 pp. National Academy Press. 5. U.S. Department of Agriculture, Agricultural Research Service. 1985. Food and nutrient intakes by women and children. Family Economics Review 1986 (2): 26-27. 6. , Human Nutrition Information Service. 1985. Nationwide Food Consumption Survey, Continuing Survey of Food Intakes by Individuals: Women 19-50 Years and Their Children 1-5 Years, 1 Day. Rpt. No. 85-1, 102 PP• 7. U.S. Department of Health and Human Services. 1985. Annual Revision of the Poverty Income Guidelines. Federal Register 46:9517. Table 4. Percentage change in mean intake by women 19 to 50 years of age, of selected foods on 1 day in spring 1977 and in spring 1985, by household income level Food group Meat, poultry, and fish •••••••••••••••••••••• Meat 1 ••••••••••••••••••••••••••••••••••••• Poultry ....... ............................ . Fish and shellfish •••••••••• , •••••••••••••• Mixtures 2 ••••••••••••••••••••••••••••••••• Milk and milk products ••••••••••••••••••••••• Whole milk ..•..•.••.......•....•.••.•.•..• Skim /lowfa t milk •..........•..........•.•.• Cheese •••••••••••••••••••••••••••••••••••• Eggs •••••••••.••••••••••••••••••••••••.•••••• Legumes, nuts, seeds ....................... . Vegetables ........ ............... · · · · · · · · · · • · · Fruits Grain products .............................. . Bread, other baked goods ••••••••••••••••• Cereals, pasta . ........................... . Mixtures 3 ••••••••••••••••••••••••••••••••• Beverages .............................. · .. • .. Coffee . ................................... . Tea ..••..... ., ...........•................. Carbonated soft drinks •••••••••••••••••••• Low 8 -16 0 18 33 -21 -42 43 -8 -29 -16 -21 -15 31 5 9 127 32 16 18 44 Incane Middle (percentage change) -3 -31 -14 40 22 -3 -40 62 -12 -14 -5 3 5 30 16 56 45 22 -2 5 52 High -8 -47 -12 20 38 6 -32 59 0 -30 12 -6 -6 28 11 14 68 25 15 -6 65 1 Beef; pork; frankfurters, sausages, luncheon meats; lamb, veal, game; and organ meats (cooked edible parts only). 2 Mixtures that are mainly meat, poultry, or fish (such as stews and sandwiches). 3 Mixtures that are mainly grain, such as pizza and pasta with sauce. Source: Unpublished data from the Continuing Survey of Food Intakes by Individuals, 1985, Human Nutrition Information Service, U.S. Department of Agriculture. 1987 No.1 Fam ily Ec onom1cs Review 17 Recent Developments in Automobile Financing Automobile purchases constitute the largest single category of expenditures financed by consumer installment credit. Changes in the terms or availability of auto credit can influence shortrun movements in auto sales and aggregate consumer spending. Auto credit demand is derived mainly from the demand for cars. The demand for cars is dependent on the transportation needs of potential buyers, car prices and financing costs, and the gap between the desired stock of cars and the actual stock owned by the public. Economic conditions have caused alternate patterns of weakening and resurgence in the growth of automobile credit in recent years. Between 1976 and 1979, car sales totaled between 10 and 11 million units each year, and auto credit expanded at annual rates of about 20 percent. Back-to-back recessions followed in the years 1980 through 1982 that decreased the demand for cars. Domestic car sales were hit particularly hard, and used car sales slumped as well. Commercial banks (which account for the largest share of auto credit) cut back on lending to consumers in the 1980-82 period, reducing their portfolio of auto loans by 12-1/2 percent. Auto credit outstanding expanded at annual rates of only 4 percent. In response to this constriction of auto credit by banks, auto manufacturers supported the credit market through their finance company subsidiaries. One incentive was to offer loans at below-market rates on certain slow-selling models. In 1982 sales of new cars hit a 20-year low of 8 million units. During the next 3 years auto sales and credit activity increased vigorously as the economy began to expand again. New car sales rebounded to 9-1 I 4 million units in 1983, and auto credit outstanding increased 16 percent. Sales reached 10-1/2 million units in 1984 and 11 million units in 1985. Several factors combined to create a favorable 1 B Family Economics Review 1987 No.1 car-buying atmosphere. The average age of the existing car stock was up. Installment debt owed by households relative to their income had dropped to a 7 -year low of 14 percent. Gasoline prices had stabilized. Auto loan rates were being pulled down due to substantial declines in market interest rates. The U.S. dollar was strong on foreign exchange markets. Finally, commercial banks had returned as aggressive competitors in the auto credit market. In the early eighties savings and loan associations entered the auto loan market. By the fall of 1985, savings and loans had moved ahead of retail stores as the fourth largest source of commercial credit, behind commercial banks, finance companies,, and credit unions. Holdings of auto paper by savings and loans grew from $1 billion in 1981 to $8-1/2 billion at the end of 1985. The supply of auto credit has further increased since the beginning of 1985 because of the following developments: 1. Lengthening of maturities. The average maturity of new-car loans rose from 46 months to 52 months during the 1984-85 period. Loan-to-value ratios also have edged higher. 2. Loans with special features. Balloon payments, for instance, reduce the size of the down payment or the monthly installments, or both, because of a large final "balloon" payment. The balloon payment can then be refinanced or paid for by the sale of the car. 3. Leasing for nonbusiness purposes • The consumer is able to obtain the use of a car with a relatively small initial outlay of cash and small monthly payments. Lease plans are available from automobile finance companies and from banks that are heavily involved in automobile finance. 4. Reduced-rate financing programs. The periodic offering of cut-rate financing by auto finance companies has lifted auto sales and credit. Low-rate financing was first offered by the large domestic automakers in 1982. The early programs provided relatively moderate rate discounts or they applied only to a narrow selection of slowselling models. By 1985 virtually all car models were covered by the programs, and the discounts were 4 to 5 percentage points below market rates. In general, the low-rate loan programs appear to affect the timing of sales more than they affect the total volume over a period of time. 5. Securities backed by auto loans. This refers to the pooling together of auto loans for sale in the secondary market in the form of a pass-through security. Until 1985 secondary marketing of nonmortgage consumer debt through the issuance of securities was virtually nonexistent. The General Motors Acceptance Corporation has beert the principal originator of securities backed by auto loans. Banks and thrift institutions have been the largest purchasers of auto-backed certificates, and pension funds and insurance companies also have invested in them. Investors are attracted to auto-backed certificates by their yield advantage over Treasury notes, their limited default risk, and their comparatively short and predictable maturity (about 2 years). Although the influence of this new secondary market instrument on the supply of auto credit to date has been small, the continued development of such securities should bolster the overall supply of auto credit in the future. It was predicted that a strong basic demand for autos and auto financing would be maintained in 1986. The median age of reached in 1985 for the existing car stock (the highest reading since World War II), a high auto scrappage rate, the recent sharp decline in gasoline prices, and a favorable economic outlook with generally lower interest rates and minimal inflationary pressures should combine to support auto demand. Source: Luckett, Charles A., 1986, Recent developments in automobile finance, Federal Reserve Bulletin, 72(6):355-365, Board of Governors of the Federal Reserve System • Measures of Compensation In 1984 approximately 100 million persons were employed as wage or salary workers in the United States. Their earnings and benefits accounted for 75% of our national income. These numbers underscore the importance of a comprehensive statistical program covering employee compensation. In response to the diverse needs of data users, the U.s. Department of Labor, Bureau of Labor Statistics (BLS), has developed nine series on compensation, as described in this abstract. These series provide information on rates of pay, earnings, compensation, labor costs, and income.1 Differences among the series are from variations in concept; worker, geographic, and industrial coverage; sampled establishment size;2 timing of data collection ; unit of measurement; collection and estimating techniques; and sample size and variability. Occupational Wage Surveys Occupational wage surveys are used to summarize the rate of pay for individual workers and develop averages and distributions of straight-time earnings for a number of jobs at a given time. Depending on the survey, data may be collected from a specific industry, labor market, or the Nation as a whole. Field representatives visit sample establishments and collect data from payroll 1 The rate of pay is the basic money return to a worker for a unit of time worked or output produced, plus various employee benefits. Earnings are employer payroll outlays to a worker. Compensation is earnings plus employer payments on behalf of a worker to public and private pension, health, and welfare funds. Income is total receipts of individuals and includes payments from a variety of sources but is not limited to payments for work. 2 An establishment refers to a single physical location in manufacturing industries and to all outlets of a company within an area or county in nonmanufacturing industries. 1987 No.1 Fam i ly Econom i cs Review 19 records, company booklets, and labormanagement agreements. Occupational wage surveys are used for a variety of purposes, such as wage and salary administration, plant location studies, collective bargaining, cost evaluations, and Federal wage-policy formulation. Data are useful in studies of both levels of pay and variations in pay according to occupation, industry, and geographic area. Data are collected in industrial wage surveys from selected occupations that represent a range of activities performed by workers during a specified payroll month. These surveys provide information on straight-time, first-shift wage rates; pay distributions for broad employee groups (such as all production or all nonsupervisory workers); weekly work schedules; shift operations and pay differentials; employee benefits; cost-of-living adjustments; estimates of workers covered by labor management agreements; and proportions of workers employed under incentive pay plans. Area wage surveys provide employment and wage data for office clerical, professional, technical, maintenance, toolroom, powerplant, materiaJ movement, and custodial occupations that are common to a variety of industries. Surveys are limited to selected metropolitan areas, which when properly weighted, yield employment and wage estimates at the national and regional levels. The National Survey of Professional, Administrative, Technical, and Clerical Pay (PATC) provides information on white-collar salary levels and distributions in medium and large firms of private industry. In 1985 approximately 100 occupations were studied in accounting, legal services, personnel management, engineering, chemistry, purchasing, -photography, crafting, computer science, and clerical fields. Data from the PATC are used as a principal element in setting the pay for Federal white-collar employees. 20 Family Economics Review 1987 No.1 Average Hourly and Weekly Earnings: Establishment Data The Current Employment Statistics Survey collects employment, hours, and earnings data monthly from a nationwide sample of nonagricultural establishments in cooperation with State employment security agencies. These agencies mail surveys to a sample of business establishments each month, develop estimates from the returned surveys, and forward the data to BLS. Earnings data are used by private and public organizations in monitoring the economic well-being of Americans dependent on salaries and wages, and as input in other time-series and economic models used for analyzing and projecting trends in the economy. Hourly earnings data are commonly used by both labor and management in contract negotiations, since the series not only furnishes current and historical information on a given industry but provides comparative data on related industries. Earnings Statistics From the Current Population Survey The Current Population Survey (CPS) produces data on the labor force, employment, unemployment, and persons not in the labor force; data are classified by demographic, social, and economic characteristics. The CPS is conducted for BLS by the U.S. Bureau of the Census. Census sends questionnaires to about 59,500 households throughout the country. Hourly and weekly earnings of wage and salary workers and their families are published on a quarterly basis. Also, annual earnings and some total income data are published in conjunction with data on the economic status of families and employment problems of workers. Because it is a household survey, the CPS is able to provide substantial detail on the demographic, social, and economic characteristics of workers and their families. Wages of Workers Covered by Unemployment Insurance Programs The Employment and Wages Program (ES-202) is carried out in cooperation with State employment security agencies. Unemployment insurance tax reports, required from employers for the administration of unemployment insurance laws, are collected and summarized quarterly by these State agencies. The summaries are aggregated by BLS to provide national data on employment and wages. The ES-202 is a comprehensive source of employment and wage data by industry at the national, State, and county levels for agricultural and nonagricultural employees. Included among the data collected are total wages, taxable wages, unemployment insurance contributions, and employment characteristics. Average annual and weekly wages also are derived from the series. Data are used to measure unemployment insurance revenues and disbursements; national, State, and local area employment; and total taxable wage trends. ES-202 data also are used in actuarial studies of the unemployment insurance system; for determining employer tax rates, maximum unemployment insurance benefit levels, and areas needing Federal unemployment insurance assistance; and to evaluate the solvency of State unemployment insurance trust funds. Income and Earnings Data From the Consumer Expenditure Survey The Consumer Expenditure Survey (CES) collects data related to consumer expenditures for goods and services, amounts and sources of family income, changes in assets and liabilities, and demographic and socioeconomic characteristics of consumers. Conducted by Census, the CES is a continuous household survey and the only nationwide survey that links the levels of consumer income to patterns of consumer expenditures and savings. The data allow users to classify expenditures by income or other demographic and socioeconomic characteristics; economists and market researchers can analyze consumer demand for groups of goods and services. Data are useful to private and public agencies studying the welfare of certain segments of the population, such as the elderly, low-income consumers, or food stamp recipients. The Internal Revenue Service has used the data as the basis for revising the average State sales tax tables, which taxpayers may use in preparing Federal income tax returns. The Employment Cost Index The Employment Cost Index (ECI) is a comprehensive measure of change in employers' costs for employee compensation and includes costs for employee benefits, as well as wages and salaries. Each quarter the ECI measures changes in the price (wage plus benefit costs) of a standardized mix of purchased labor services. BLS economists visit sample establishments to obtain the initial information. Additional data are collected through forms mailed to each establishment. The ECI measures changes in the price of labor defined as the rate of compensation per employee hour worked. This emphasis on the rate, rather than on average hourly earnings, distinguishes the ECI from other series. Data are collected on 23 separate benefits including paid leave (such as vacations and sick leave), supplemental pay (such as pay for overtime), insurance benefits, retirement and savings benefits, legally required benefits (such as Social Security), and other benefits (such as severance pay) • The ECI is used in analyzing the inflationary process and the changing structure of wage and compensation. Because the ECI provides data for subgroups (such as by industry, occupation, or region), it can be used to identify the sources of pressure for wage and compensation change. Hourly Compensation Measures of the Office of Productivity and Technology The Bureau of Labor Statistics, Office of Productivity and Technology (OPT), produces measures of real and nominal compensation per hour as part of its productivity and cost measurement program. Compensation measures are in index form and are designed to emphasize changes in labor cost over time. To compute these measures, OPT uses a compensation measure, a measure of hours, and the Consumer Price Index of All Urban Consumers ( CPI-U). Compensation includes employer expenditures for employee wages and salaries, social insurance, and private benefits, plus estimates of these components for the self-employed. Hours are calculated separately for wage and salary workers, the self-employed, and unpaid family workers, then summed to the all-person level. Compensation per hour equals estimated 1987 No.1 Fam i ly Econom i cs Re view 21 compensation divided by these hours. Real hourly compensation is compensation per hour divided by the CPI-U. The OPT measures of hourly compensation combine BLS hours data with compensation information obtained primarily from the Bureau of Economic Analysis, U.S. Department of Commerce. These series are useful in forecasting and analyzing prices, wages, profits, and production costs. Because hourly compensation measures are presented in index form, however, their use is limited to the analysis of changes over time. Measuring Negotiated Wage and Benefit Changes The current wage development program provides information on pay changes resulting from collective bargaining. It measures compensation and the size of negotiated wage adjustments in major collective bargaining situations. Data are obtained directly from establishments as part of a variety of BLS surveys and are presented separately for three occupational groups: Professionaladministrative, technical-clerical, and production workers. Monthly listings are produced that describe negotiated changes and statistical summaries of aggregate changes. Data from private industry and State and local governments include adjustments stemming from contract settlements, deferred changes, and changes resulting from cost-of-living adjustments. The series on wage and compensation adjustments from collective bargaining is one of the Federal Government's principal economic indicators and is used in determining trends in compensation and in forecasting changes in wage and salary income and in the gross national product. The Employee Benefits Survey The Employee Benefits Survey (EBS) provides comprehensive data on the percent of employees covered by major employee benefits and on the detailed provisions of benefit plans. The annual survey is conducted by BLS field representatives who visit each sample establishment and obtain documents containing the data required. Information is developed on 11 private sector employee benefits paid for at least in part by the 22 Fam ily Econom i cs Review 1987 No.1 employer, including: Paid lunch and rest periods; holidays and vacations; personal and sick leave; long-term disability, health, and life insurance; and private pension plans. The EBS is a major source of information for labor and management involved in contract negotiations. Employers use the EBS data to compare their benefit plans with prevailing practices. Labor unions assess potential areas for increasing nonwage compensation. Social welfare planners evaluate the ability of employees to provide for the current and future health and welfare needs of themselves and their dependents. Selection of Series To determine which statistical series would be most appropriate, data users should consider the following: The concept measured (rate of pay, earnings, compensation, labor costs, or income). The portion of the economy covered by the data. The amount of detail available in terms of industry, area, and type of worker. The time period covered. The definitions given to the items studied (for example, a survey of employee earnings may cover only regular payroll outlays, and exclude bonuses). Users also should be familiar with the methods of compiling the series. Some earnings series come from surveys of establishments that provide data on employment, earnings, and hours; others come from household responses. The table on page 23 summarizes and classifies each series in accordance with its emphasis on industry and worker coverage, frequency of publication, types of compensation included, and data sources. Source: U.S. Department of Labor, Bureau of Labor Statistics, BLS Measures of Compensation, Bulletin 2239, 1986. '-D (X) ...... z 0 ..., Ill 3 ..... ...... '< ,.., n 0 ::J 0 3 ..... n r.o :;c "<...'. . "' :1: N "' BLS measures of compensation--Summary of statistical series Series Occupational wage surveys Average hourly and weekly earnings-establishment data Earnings statistics from the Current Population Survey Wages of workers covered by unemployment (UI) programs Income and earnings data from the Consumer Expenditure Survey Employment Cost Index Hourly compensation measures of the Office of Productivity Technology Negotiated wage and benefit changes Employee Benefits Survey 1 Not applicable. Coot>ensa t ion Wages and salaries. Wages and salaries. Primarily wages and salaries; also total money income . Wages, salaries, and other payments covered by UI taxes. Wages, salaries, and other sources of income . Wages, salaries, and employer costs for employee benefits. Wages, salaries, and supplements plus estimate of labor compensation of self-employed • Wages, salaries, and private benefits. Selected employee benefits. Coverage Worker Primarily nonsupervisory employees in selected occupations. Production and nonsupervisory workers. Wage and salary workers, all employed workers. All workers covered by Federal and State UI Jaws. Urban civilian nonins titu tiona! population. All employees. All employees plus the self-employed. Production and nonsupervisory workers in bargaining units of 1, 000 workers or more (5 ,000 or more for wages and benefits combined) • Full-time employees. Industry Geographic Varies by survey. Varies by survey-nationwide, selected regions and areas. Private nonfarm Nationwide. economy, excluding households. All industries. Nationwide. All industries. Nationwide, Statewide, county level, and area. (1) All urban areas. Private nonfarm economy, excluding households, and State and local governments • U.S. business sector. Private nonfarm economy; State and local governments. Medium and large private nonfarm establishments. Nationwide. Nationwide. Nation wide. Nationwide. Source: U.S. Department of Labor, Bureau of Labor Statistics, 1986, News, USDL-86-211. ~ere pub! ished BLS bulletins, news releases, locality releases. Employment and Earnings, news releases. Employment and Earnings, Monthly Labor Review, news release. Employment and Wages, news releases. BLS bulletins, news releases. Current Wage Developments, news releases. Employment and Earnings, news releases. Current Wage Developments, news releases. BLS bulletin, Monthly Labor Review, news releases • Data reported Hourly, weekly, monthly, or annual straight-time earnings, by occupation, usually with incidence of benefits. Hourly and weekly earnings, with industry and geographic detail. Hourly rates, weekly and annual earnings, money income; demographic detail. Weekly and annual earnings per employee, aggregate annual payrolls; industry and area detail. Annual income, by source. Indexes and quarterly and annual changes in wages and salaries and total compensation costs. Indexes and quarterly and annual changes in hourly compensation. Terms of individual settlements; average pay rate changes in cents per hour and percent. Incidence of benefit plans and plan provisions, by broad occupational group. Using Consumer Expenditure Survey Data1 One of the important uses of data from the Consumer Expenditure Survey (CES) is to provide information about the spending habits of different kinds of American households. Expenditures are categorized by household characteristics, including consumer unit size, age of reference person, region of residence, number of earners, and income quintile. 2 Several discriminating methods of measurement may be used to compare or contrast spending by different types of households. Average expenditure levels. Levels of expenditures refer to the average amounts spent by each class of consumer units. The levels can be compared to determine differences by household characteristics. For example, units in the highest income quintile averaged $91.16 a week for food, whereas those in the lowest income quintile averaged $28.08. Consumer units with reference persons 25 to 34 years of age spent an average of $54.22 per week on food, compared with $37.80 spent by units with reference persons 65 years and over. One-person units with one earner averaged $31.39 per week for food expenditures; one-person units with no earner averaged $22.51. Consumer units in the South averaged $52.24 per week for food, whereas units in the Northeast averaged $58.48. 1 Findings from the continuing Consumer Expenditure Survey, Interview and Diary Surveys, 1982-83. For additional information on this survey and its two component parts, see "Spending Patterns of U.S. Households," p. 26 of t.his issue. 2The basic reporting unit of the CES is the consumer unit, which refers to a single person or group of persons in a sample household related by blood, marriage, adoption, or other legal arrangement, or who share responsibility for at least two of three major types of expenses--food, housing, and other expenses. The consumer unit may also be referred to as a household. The reference person is the first person named by the survey respondent as owning or renting the home. z• family Economics Review 1987 No.1 Budget shares. Budget shares are the portion of total expenditures spent on one component (for example, food) or the portion of one average component expenditure spent on one subcomponent (for example, the portion of average food expenditures spent on food away from home). Single-person units with a wage earner spent 58% of food expenditures on food away from home, compared with 30% by two-or-more-person units with one earner. Aggregate expenditure shares. The aggregate amount spent by one class of consumer units for one component can be compared to the aggregate amount spent by another class, or by all consumer units, to determine if those units are consuming a disproportionate share of that expenditure item. Aggregate expenditures for one component are calculated by multiplying the mean expenditure for that component by the total number of consumer units. The aggregate expenditure share for one class of consumer units is determined by first multiplying the class' mean expenditure by the number of consumer units in the class, then dividing that number by the aggregate expenditure for all units for that component. The aggregate expenditure share for one class of consumer units differs from the budget share of that class of consumer units. Even if the class' component budget share is large, the class' aggregate expenditure share can still be relatively small (1) if the class size is small and/or (2) if the class' mean expenditure for the component is relatively low compared with that of other classes. For example, units with reference persons under 25 years of age spent 23% of their average total expenditures on transportation, compared with 20% spent by all consumer units (budget shares). Yet, the aggregate expenditure share for units with reference persons under age 25 was only about 7%, even though these units comprise 10% of the total number of units; the dollar value of their mean expenditure is low relative to those of most other classes. Per capita expenditures. Per capita expenditures are frequently used because consumer unit size may contribute to differences in expenditures among classes. Mean expenditure levels per consumer unit usually increase with age up to the middle-age classes and decrease thereafter. Per capita expendi-tures, however, reveal a different pattern; per capita housing expenditures are highest for units with reference persons age 65 or over and lowest for units with reference persons under 25 years of age ($2,425, compared with $1,894). Consumer units with reference persons ages 45 to 54 have the highest average expenditures for nonprescription drugs and supplies, but per capita expenditures are highest for units with reference persons age 65 or over. Changes over time. CES data are used to record changes in U.S. consumer expenditure patterns over time. For example, average weekly expenditures for food increased 70% between 1972-73 and 1982-83, considerably below the 104% price rise for food as measured by the CPI. Although changes in ex penditures and the CPI for food away from home were similar (113% increase in expenditures compared with 120% rise in prices), there was a sharp difference in t he changes for food at home (53%, compared with 99%). Variations in expenditure patterns over time can be attributed to other factors , such as fluctuations in wage rates ; changes in tastes, habits, and lifestyles; and the availability of new products. Demographic trends, such as changes in average family size, age, and earner composition, may also affect expenditures. The continuing CES allows data users to note trends more quickly than was possible in the past and to observe trends that might have been missed using data that were less frequently available. Source: Gieseman, Raymond, and John Rogers, 1986, Consumer Expenditures: Results from the Diary and Interview Surveys, Monthly Labor Review 109(~) :1 4-18, U.S. Department of Labor, Bureau of Labor Statistics. Subscrtption Order Or Change 01 Address Form FAMILY Annual subscrtption Single copies Enclosed IsS·------- 0 Check 0 Money order 0 Charge to my Deposit Account No _______ ___ Order No ______ _ Make check payable to Superintendent ol Documents CREDIT CARD ORDERS ONLY (Visa and Mastercard) Total charges S Credit card No Expiration Date Month/Year ECONOMICS $12.00 domestic $3.25 domestic REVIEW ($15.00 foreign) ($4.10 foreign). Please print or type Company or Personal Name I I I I I I I I I I I I I Additional Address I Attention Une I I I I I I I I I I I I Street Address I I I City I I I Country I I I I CHANGE OF ADDRESS Please attach mailing label here and send this torm when requesting a change ol address. MAIL ORDER FORM TO, Superintendent ol Documents GoTemment Printing Otttce Wash1Dgton. D.C. 20402 Slate ZIP Code LUI I II I I I FOR OFFICE USE ONLY Quantity ___ Publications Charges --~ Subscriptions ___ _ Special Shipping Charges __ _ International Handling ___ _ Special Charges-----OPNR ____ UPNS ____ Balance Due ____ Discount ____ Refund 1987 No . 1 Family Economics Review 25 Spending Patterns of U.S. Households1 The U.S. Bureau of Labor Statistics (BLS) reports that American households spent less for gasoline in 1984 than in 1983--the first annual decrease in a major expenditure category since 1980. Expenditures for other major components of transportation, however, substantially increased. Vehicle purchases accounted for two-thirds of the increase in transportation expenditures. Not only did more people buy cars, but the cost of cars and trucks increased. Also, vehicle financing costs (associated with increased vehicle expenditures) rose by 25%. Although substantial fluctuations in dollar amounts spent on components occur from year to year, the proportion of money allocated to each component has been relatively constant over time. Other findings of the survey show that: Increases in expenditures surpassed increases in prices, as measured by the Consumer Price Index ( CPI), for most components in 1984 . For example, expenditures for nonprescription drugs rose 10% from 1983, whereas prices rose a little over 5% • Prices exceeded expenditures, however, for education and tobacco. Both expenditures and prices declined at a rate of 1 .5% for gasoline and motor oil (table 1). • From 1983 to 1984 expenditures for retirement, pensions , and Social Security increased 14% (table 1) because of the general upswing in income and legislated increases in maximum earnings to which Social Security tax is applied • • Homeowners and renters spent about the same percent of total expenditures for housing; however, renters spent a higher share of their housing expenditures for shelter than did homeowners (21% and 16%, respectively) . The latter spent a greater proportion for utilities , household operations, and equipment . 1 Findings from the continuing Consumer Expenditure Survey: Interview and Diary Surveys, 1984, U. S . Department of Labor, Bureau of Labor Statistics . 26 Family Economics Review 1987 No.1 • There was a moderate rise in food expenditures. Consumer units with reference persons 2 under 25 years of age spent more of their food budgets on food away from home than units with older reference persons (table 2). The Survey The current Consumer Expenditure Survey ( CES) was begun in 1979. The main objective for the survey is to gather consumer expenditure data that provide a continuous source of information on the buying habits of consumers. The data are used for the periodic revisions of the CPI and for research conducted by a variety of government, business, labor, and academic analysts. In the past the survey was conducted about every 10 years; the new survey is ongoing, with rotating panels of respondents participating over time. The continuous flow of data significantly adds to the usefulness of the survey by providing more timely and detailed information on household consumption patterns. A new feature of the detailed tables is the division of the 65-and-over age class into the 65-to-74 and 75-and-over age groups. The CES survey consists of two components: (1) A diary, or record keeping, survey completed by participating consumer units for two consecutive 1-week periods; and (2) an interview survey in which the expenditures of consumer units are recorded in five interviews, each conducted every 3 months. Each component is used with an independent sample that is representative of the U.S. urban population. In the diary survey, 5, 000 consumer units are interviewed over 52 weeks. The interview sample, composed of rotating panels, consists of 5, 000 consumer units each quarter. In the interview survey respondents report expenditures that have accrued over a period of 3 months or longer. In general, these are relatively large expenditures (such as those for real property, automobiles, and major appliances) or expenditures that occur fairly regularly (such as rent, utilities, and insurance premiums). Estimates of food 2 See footnotes 1 and 2 in table 1. Table 1. Annual expenditures of urban consumer units and percent change in consumer expenditures ( CE) and Consumer Price Index ( CPI-U) 1 Item Number of consumer units in universe (thousands) ••••••••••.••••••••••••••••••••••••• Income before taxes ............................ . Size of consumer unit ••••••••••••••.••••••••.••• Age of reference person (years) 2 •••••••••••••••• Number in consumer unit: Earners ••••••••••••••••••••••••••••••••••••••• Vehicles •••••••••••••••••••••.••••• • •••••••••• Children under 18 years ••••••••••••• • ••••••••• Persons 65 years and over •••••••••••••••••••• Total expenditures •••••••••••••••••••••••••••••• Food •••••••••••••••••••••••••.••••••.••••••••• Food at home •••••••••••••••••••••••••••••••• Food away from home •••••••••.•••••••••••••• Alcoholic beverages ••••••••••••••••• ••••• ••••• Housing •••••••••••••••••••••••••••••••••••• ••• Shelter ••••••••••••••.•••••••••••••••••••••• • Owned dwellings •••••••••••••••••••••••••••• Rented dwellings ••••••••••••••••••••••••••• Other lodging •••••••••••••••••••••••••••••• Utilities, fuel, and public services •••••••••• Household operations •••••••••••••••••• • •••••• Housefurnishings and equipment •••••••••••••• Apparel and services •••••••• ••• .••••••••••••••• Transportation ••••••••••••••••••••••••••••••••• Vehicles ••••••••••••••••••••••••••••••• • • • • • • Gasoline and motor oil ••••••••••••••••••••.•• Other vehicle expenses ••••••••••••••••••.•••• Public transportation ••••••••••••••••••••••••• Health care •••••••••••••••••••••• •• •••••••• • • • • Entertainment ••••••••••••••••••••••••••••• • • • • • Personal care services •••••••••••••••••••••••••• Reading •••••••••••••••••••••••• ••••••••••• • • • • • Education •••••••••••••••••••• • • • • • • • • • • • • • • • • • • Tobacco and smoking supplies •••••••••• •••• •••• Miscellaneous •••••••• ••• •••••••••••••• • • • • • • • • • • Cash contributions •.•••••••••••••••• • • • • • • · • • • • Personal insurance and pensions ••••••••••••• ••• Life and other personal insurance •••••• •• •.•• Retirement, pensions, Social Security ••••••••• 1983 72,531 $23,126 2.6 46.1 1.3 1.8 .7 .3 $19,692 3,198 2,224 974 286 5,980 3,349 1,958 1,063 327 1,540 284 808 1,084 3,914 1,565 1,064 1,047 239 839 919 184 131 293 215 283 588 1,777 265 1,513 1984 74,844 $24,578 2.6 46.2 1.4 1.9 .7 .3 $21,788 3,391 2,342 1,048 299 6,626 3,747 2,188 1,171 388 1,679 333 868 1,192 4,385 1,873 1,048 1,176 288 899 1,040 205 140 312 225 311 740 2,023 302 1,721 Percent change CE CPI-U 6.3 10.6 ( 3 ) 6.0 3.8 5.3 3.7 7.6 4.2 4.5 2.6 10.8 ( 3 ) 11.9 ( 3) 11.7 ( 3) 10.2 5.2 18.7 4 7 .9 9.0 4 4.6 17.3 4 2.7 7.4 .8 10.0 1.9 12.0 4.5 19.7 4 8.9 -1.5 -1.5 12.3 4 4.4 20.5 6.2 7.2 6.2 13.2 3.7 11.4 3.9 6.9 4 3.3 6.5 9.7 4.7 6.5 9.9 25.9 13.8 14.0 13.7 1 Data from the Consumer Expenditure Survey (CES), interview component, 1983 and 1984. The basic reporting unit for the CES is the consumer unit that refers to a single person or group of persons in a sample household related by blood, marriage, adoption, or other legal arrangement, or who share responsibility for at least 2 of 3 major types of expenses--food, housing, and other expenses. The term household is used for convenience. 2 The reference person or householder is the first person named by the respondent as owning or renting the home. 3 CPI for all items and home ownership are not conceptually comparable. 4 These figures were calculated for use in this report. Source: U.S. Department of Labor, Bureau of Labor Statistics, 1986, Consumer Expenditure Survey results from 1984, News USDL 86-258. 1987 No.1 Family Economics Rev1ew 27 Table 2. Weekly expenditures of urban consumer units classified by age of reference person1 All Age of reference person Item consumer units Under 25-34 35-44 45-54 55-64 65-74 75 and 25 over Number of consumer units (thousands) •••••••••••••••••••••••••• 74,283 8,132 17.514 13,261 10,460 10.635 7,249 6,050 Number of sample diaries •••••••••••••• 10,589 1,076 2,457 1,975 1,480 1,595 1,047 818 Average weekly expenditures: Food, total •••••••••••••••••••••••••• $57.71 $32.27 $55.29 $75.06 $79.03 $61.20 $47.80 $31.84 Food at home (percent weekly food expenditures) ••••••••••••••• 64.3 57.4 61.3 64.0 63.8 66.6 67 .5 74.3 Food away from home (percent) •••• 35.7 42.6 38.7 36.0 36.2 33.4 32.5 25.7 Alcoholic beverages •••••••••••••••••• $5.33 $4.49 $6.19 $5.70 $7.37 $5.94 $3.05 $1.41 Tobacco products and smoking supplies •••••••••••••••••••••••••••• 3.41 2.05 3.15 4.00 4.79 4.42 2.54 1.57 Personal care products and services. 4.65 2.19 4.28 5.34 5.98 5 .so 4.78 3.21 Nonprescription drugs and supplies •• 1.87 .75 1.23 1.90 1.86 2.02 3.28 3.21 Housekeeping supplies ••••••••••••••• 5.78 2.46 5.10 7.38 7.88 6.58 5.86 3.37 1 Data from the Consumer Expenditure Survey ( CES), diary component, 1984. The basic reporting unit for the CES is the consumer unit that refers to a single person or group of persons in a sample household related by blood, marriage, adoption, or other legal arrangement, or who share responsibility for at least 2 of 3 major types of expenses--food, housing, and other expenses. The term household is used for convenience. The reference person or householder is the first person named by the respondent as owning or renting the home. Source: U.S. Department of Labor, Bureau of Labor Statistics, 1986, Consumer Expenditure Survey results from 1984, News USDL:86-258. spending are included. Expenses incurred while on trips are reported exclusively in the interview component. An estimated 95% of expenditures are included in the interview survey. The diary survey is used to obtain expenditures on small, frequently purchased items, which are normally difficult for respondents to recall; for example, detailed records of expenses are kept for food and beverages, both at home and in eating places. Expenses incurred while away from home overnight or longer are not included in the diary survey and particularly affect reported food costs. Housekeeping supplies, nonprescription drugs, and personal care products are exclusively reported in the diary survey . Personal care services are included in both components of the CES. Source: U.S. Department of Labor, Bureau of Labor Statistics, 1986, Consumer Expenditure Survey Results from 1984, News USDL: 86-258. 28 Fam i ly Economics Review 1987 No.1 PUBLICATIONS FROM BLS ON 1984 CONSUMER EXPENDITURE SURVEY Results from the 1984 CES are found in the following reports by the U.S. Bureau of Labor Statistics: Consumer Expenditure Survey: Interview, 1984, Bulletin No. 2267, contains detailed information from the 1984 CES Interview Survey (urban population). The report is available from the U.S. Government Printing Office for $4.50. Send requests to the Superintendent of Doouments, Government Printing Office, Washington, DC 20402. Ask for GPO SN029-001-02905-5 and make checks payable to Superintendent of Documents. • News USDL 86-258, "Consumer Expenditure Survey Results from 1984" (urban population). News USDL 86-451, "Consumer Expenditure Survey, 1984 Results for Both Urban and Rural Populations." For inquiries about the CES or free copies of News reports, write to the Office of Prices, Bureau of Labor Statistics, U.S. Department of Labor, Washington, DC 20212. New Publications The Revised Consumer Price Index: Changes in Definitions and Availability Monthly Labor Review 109(7): 15-23 Bureau of Labor Statistics U.S. Department of Labor The second of a series of articles on the upcoming revisions in the Consumer Price Index ( CP I) has been published by the U.S. Bureau of Labor Statistics in the Monthly Labor Review. The series provides detailed information about the revised CPI, which will be introduced in January 1987. This article highlights changes that will occur in the availability and in the definitions of indexes. For additional information on updating the CPI, see "Revision of the Consumer Price Index," Family Economics Review 1986(1): 22-23. State and Metropolitan Area Data Book, 1986 Bureau of the Census U.S. Department of Commerce The Census Bureau has updated the State and Metropolitan Data Book (SMADB) for the first time since 1982. Included are data from the 1982 Economic Censuses as well as from the 1980 Census of Population and Housing. This publication, the third edition, provides extensive geographic comparative data for States, metropolitan statistical areas, and central cities. In addition, many intercensal demographic and economic data are included from more than 25 Federal agencies and many non-Federal sources. SMADB is available for $28 from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Ask for SN003-024-06334-4. How to Get Information From the United States Department of Agriculture Office of Information U.S. Department of Agriculture A recent revision of this bulletin lists individuals who serve as information sources for their respective program agencies or staff offices, as well as names of agency Freedom of Information Act contacts. For the first time the bulletin, which has been published for the past 10 years, is available electronically as a menu item in USDA ON-LINE on the Dialcom computer system and can be updated whenever changes occur. Copies of this publication and information on USDA ON-LINE can be obtained by calling (202) 447-7454 or writing to Nancy Bevis, USDA-OGPA, Room 536A, Administration Building, 14th Street and Independence Avenue, SW ., Washington, DC 20250. * • * * * * * The following are for sale from the Superin tend en t of Documents, U.S. Government Printing Office, Washington, DC 20402, (202) 783-3238: Composition of Food: Beef Products-- Raw, Processed, Prepared. AH 8-13. November 1986. SNOOl-000-04482-6. $19 .00. 1986 Agricultural Chartbook. AH 663. November 1986. SNOOl-019-00488-6. $5.50. Disaggregated Farm Income by Type of Farm, 1959-82. AER-558. August 1986. SNOOl-019-00469-0. $5.50. What Attracts New Residents to Nonmetro Areas? RDRR-56. April 1986. SNOOl-019- 00430-4. $1.00. Black Farmers and Their Farms. RDRR-59. July 1986. SNOOl-019-00449-5. $1.75. Social and Economic Environment of Black Farmers. RDRR-61. August 1986. SNOOl-019-00463-1. $1.25. A single copy of the following is available free from the U.S. Department of Agriculture, Higher Education Programs, Room 350A, Administration Building, Washington, DC 20250: Employment Opportunities for College Graduates in the Food. and Agricultural Sciences. July 1986. 1987 No.1 family Economics Review 29 Money Income of Households, Families, and Persons in 1984 Increased employment and higher real earnings levels were important factors that helped boost real median family income between 1983 and 1984. Median family income increased faster than inflation for the second year in a row, according to the results of the March 1985 Current Population Survey, conducted by the Census Bureau. In 1984, median family income was $26,430, 7.1% higher than the 1983 median of $24,670. After adjusting for the 4. 3% increase in consumer prices between 1983 and 1984, real median family income still showed a significant gain of 2.8%, compared to an increase of only 1.6% in 1983. Median household m• come 1 rose 2.3 percent from 1983 to 1984 after adjusting for inflation. Between 1983 and 1984 median income of white families increased by 2.8% and the median income of black families increased by 1. 7% (table). Families in the West, Midwest, and South also experienced real income increases. Married couples, regardless of the employment status of the wife, had significant increases in their income. Families maintained by a college graduate experienced a 1.8% increase in median income between 1983 and 1984 (table). In contrast, the median income of families with a householder completing 4 years of high school rose 3.3%. 1 Household income includes the income of all related and unrelated persons in the household, as well as the income of oneperson households. Family income is limited to the income of related persons in a household. JO family Economics Review 1987 No.1 As stated in this report from the U.S. Bureau of the Census, estimates were developed from two sample frames-one from the 1980 census and the other from the 1970 census. Since this sample design did not permit the development of estimates for area of residence that were comparable to either the 1980 or 197 0 census definitions, figures for those estimates were omitted. According to the Census Bureau, publication of data by residence categories will resume when estimates can be derived using the full sample from the 1980-based survey design. Also, revised weighting procedures for persons of Spanish origin increased the Spanish population estimate by approximately 1.6 million. The number of men and women with earnings rose substantially during 1984 as the number of employed Americans continued an expansion that began in 1983. The number of men with earnings rose to 66.5 million, up 1.5 million over 1983, and the number of women with earnings rose by 2 .1 million to 55· 2 million. Men had median earnings in 1984 of $23,220, compared with median earnings for women of $14,780. The earnings level for women was 64% of the level for men, about the same as 1983. Source: U.S. Department of Commerce, Bureau of the Census, 1986, Money income of households, families, and persons in the United States: 1984, Current Population Reports, Consumer Income Series P-60, No. 151. Comparison of median family income in 1983 and 1984 [In 1984 constant dollars] Characteristic 1984 Total ................................•.... $26,433 Race of householder: White •. · ••...•.......••.•.•..•......•.. Black ................ · • • · • · · · · • · · • · · · · Spanish origin1 •••••••••••••• ; ••••••••• Region: Northeast Mid west .............................. . south ................................ . West •••••••••••••••••••••••••••••••• • • Education of householder: Elementary school ••••••••••••••••••••• High school, 4 years •••••••••••••••••• College, 4 years or more •••••••••••••• Number of earners: None ............... · · · · · · · · · · · · • • · · · · · 1 •...•..•.........•.•...•..•.••....... 2 •••••••.•••.•.•...•••.••••••••••••••. 3 ..................................... 4 or more •......................•..... Type of family: Married-couple ....................... . Wife in paid labor force ••••••••••••• Wife not in paid labor force ••••••••• Male householder, no wife present ••••• Female householder, no husband present ............................. . 1 Persons of Spanish origin may be of any race. 2 Less than .05. * Significant at the 95% confidence level. 27,686 15,432 18,833 28,487 26,753 24,094 28,077 14,937 26,528 43,169 11 '377 20,291 31,707 39,828 50,278 29,612 34,668 23,582 23,325 12,803 1983 $25,724 26,937 15,181 17,652 f-7 ,853 25,900 23,543 26,764 14,728 25 '67 4 42,400 10,974 20,284 31,101 38,914 49,824 28,543 33,518 22,991 22,858 12,339 Percent change (1983-84) *2.8 *2.8 1.7 6.7 2.3 *3.3 *2.3 *4.9 1.4 *3.3 *1.8 *3.7 (2) *1.9 *2.3 0.9 *3.7 *3.4 *2.6 2.0 3.8 Source: U.S. Department of Commerce, Bureau of the Census, 1986, Money income of households, families, and persons in the United States: 1984, Current Population Reports, Consumer Income Series P-60, No. 151. 1987 No.1 Family Economics Re v iew J1 "" N ..., Ill 3... . ...... '< 1"\ 0 0 ::l 0 .3.. . 0 CD ;:c !D .<.. . !D s; _, '-D 0) ..... z 0 Cost of food at home estimated for food plans at 4 cost levels, November 1986, U.S. average1 Cost for 1 week Cost for 1 month Sex- age gr oup Thrifty Low-cost M:xierate- Liberal Thrifty Low-cost M:xierate- Liberal plan plan cost plan plan plan plan cost plan plan FAMILIES Family of 2 : 2 20 - 50 years •••••••••••••••••••••••• $38.60 $48.70 $60.30 $74.60 $167.10 $211.00 $261.00 $323.10 51 years and over •••••••••••••••••• 36.50 46.70 57.60 69.00 158.20 202.30 249.70 298.80 Family of 4: Couple , 20-50 years and children-- 1- 2 and 3-5 years •••••••••••••••• 56.10 69.90 85.70 104.80 242.90 303.00 371.00 454.10 6- 8 and 9-11 years ••••••••••••••• 64.40 82.30 103.10 123.90 278.50 356.30 446.50 536.70 INDIVIDUALS 3 Child: 1-2 years .......................... 10.10 12.20 14.30 17.10 43.70 52.90 61.80 74.10 3-5 years •••••••••••••••••••••••••• 10.90 13.40 16.60 19.90 47.30 58.30 71.90 86.30 6-8 years .......................... 13.40 17.80 22.30 26.00 57.90 77.00 96.50 112.60 9-11 years ••••••••••••••••••••••••• 15.90 20.20 26.00 30.10 68.70 87.50 112.70 130.40 Male: 12-14 years ........................ 16.60 22.90 28.60 33.60 72.00 99.40 124.00 145.70 15-19 years ........................ 17.30 23.80 29.50 34.20 74.80 103.10 127.70 148.10 20-50 years •••••••••••••••••••••••• 18.50 23.50 29.60 35.60 80.00 101.80 128.20 154.40 51 years and over •••••••••••••••••• 16.80 22.40 27.60 33.00 72.60 97.00 119 .40 143.10 Female: 12-19 years •••••••••••••••••••••••• 16.50 19.90 24.10 29.10 71.40 86.10 104.40 126.10 20-50 years •••••••••••••••••••••••• 16.60 20.80 25.20 32.20 71.90 90.00 109 .10 139.30 51 years and over ••••••••••••••••• 16.40 20.10 24.80 29.70 71.20 86.90 107.60 128.50 1Assumes that food for all meals and snacks is purchased at the store and prepared at home. Estimates for the thrifty food plan were computed from quantities of foods published in Family Economics Review , 1984(1). Estimates for the other plans were computed from quantities of foods published in Family Economics Review, 1983(2). The costs of the food plans are estimated by updating prices paid by households surveyed in 1977-78 in USDA's Nationwide Food Consumption Survey. USDA updates these survey prices using information from the Bureau of Labor Statistics, CPI Detailed Report, table 3, to estimate the costs for the food plans. 2 10 percent added for family size adjustment. See footnote 3. 3 The costs given are for individuals in 4-person families. For individuals in other size families, the following adjustments are s uggested: 1-person--add 20 percent; 2-person--add 10 percent; 3-person--add 5 percent; 5- or 6-person--subtract 5 percent; 7- or more-person--subtract 10 percent. ~ 9. ~ 0 0. a s: ~ Consumer Prices Consumer Price Index for all urban consumers [1967 = 100, unless otherwise noted] Group All i terns •••••••••••••••••••••••••••••••••••• Food •••••••••••••••••••••••••••••••••••••• Food at home ........................... . Food away from horne ................... . Housing ........................ · .......... . Shelter ................................. . Renters' costs 1 •••••••••••••••••••••••• Rent, residential ................... . Homeowners' costs 1 •••••••••••••••••••• Maintenance and repairs ••••••••••••••• - Maintenance and repair services ••••• Maintenance and repair commodities •• Fuel and other utilities ••••••••••••••••• Fuel oil, coal, and bottled gas •••••••• Gas (piped) and electricity •••••••••••• Household furnishings and operation ••••• Housefurnishings ..................... . Housekeeping supplies ••••••••••••••••• Housekeeping services ••••••••••••••••• Apparel and upkeep ••••••••••••••••••••••• Apparel commodities ••••••••••••••••••••• Men's and boys' apparel ••••••••••••••• Women's and girls' apparel •••••••••••• Infants' and toddlers' apparel ••••••••• Footwear .......................... · · · · Apparel services ....................... . Transportation ........................... . Private transportation ••••••••••••••••••• New vehicles .....................•.... Used cars ............................ · Motor fuel .... .......................... . Maintenance and repair •••••••••••••••••• Public transportation •••••••••••••••••••• Medical care ................. · · · • · · • · · · • • • • Medical care commodities ••••••••••••••••• Medical care services •••••••••••••••••••• Professional services •••••••••••••••••• Entertainment . • .................. · · · · · · • • • Other goods and services •••••••••••••••••• Personal care . .................. • · · · · • • • • Personal and educational expenses • ." ••••• 1 Indexes based on December 1982 = 100 base. Nov. 1986 330.8 324.6 309.9 365.8 361.7 410.2 124.3 285.6 121.5 377.1 433.7 272.9 371.1 452.0 426.7 251.2 201.4 320.4 348.5 213.1 197.4 205.3 175.0 307.0 215.1 339.0 304.3 295.8 230.2 361.0 260.9 368.4 431.7 444.6 278.2 481.5 399.8 277.4 354.9 293.4 448.2 Unadjusted indexes Oct. Sept. 1986 1986 330.5 323.7 309.5 364.0 363.0 409.5 124.0 284.6 121.3 379.0 437.5 273.0 379.1 451.9 441.4 251.6 202.2 319.8 348.5 213.2 197.6 204.3 176.4 312.0 215.1 338.3 302.6 294.1 226.7 360.6 263.2 365.7 428.7 442.3 277.5 478.8 398.0 276.5 354.6 293.1 447.6 330.2 323.2 309.0 363.3 363.7 407.6 123.6 283.2 120.7 376.2 437.0 268.7 388.3 453.5 461.1 251.5 202.2 320.1 347.8 212.1 196.6 203.2 175.7 309.7 212.0 336.7 302.2 293.7 224.2 359.5 271.1 365.0 428.5 439.7 276.7 475.7 396.1 275.3 353.3 292.0 445.2 Nov. 1985 326.6 311.1 296.6 351.3 355.0 391.3 118.4 271.7 115.8 372.7 426.4 271.5 392.1 641.6 440.5 248.9 200.8 316.4 342.7 211.2 196.8 203.6 176.5 307 .o 215.5 326.3 323.2 317 .o 218.2 376.4 376.7 355.8 412.8 413.0 262.7 445.8 375.5 269.0 335.3 285.4 415.4 Source: U.S. Department of Labor, Bureau of Labor Statistics. 1987 No.1 Family Economics Review JJ
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Title | Family Economics Review [1987, Number 1] |
Date | 1987 |
Contributors (group) |
Institute of Home Economics (U.S.) United States. Agricultural Research Service Consumer and Food Economics Research Division Consumer and Food Economics Institute (U.S.) United States Science and Education Administration United States. Agricultural Research Service United States Agricultural Research Service Family Economics Research Group |
Subject headings | Home economics--Accounting--Periodicals |
Type | Text |
Format | Pamphlets |
Physical description | 8 v. ; $c 27 cm. |
Publisher | Washington, D.C. : U.S. Institute of Home Economics, Agricultural Research Service, U.S. Dept. of Agriculture |
Language | en |
Contributing institution | Martha Blakeney Hodges Special Collections and University Archives, UNCG University Libraries |
Source collection | Government Documents Collection (UNCG University Libraries) |
Rights statement | http://rightsstatements.org/vocab/NoC-US/1.0/ |
Additional rights information | NO COPYRIGHT - UNITED STATES. This item has been determined to be free of copyright restrictions in the United States. The user is responsible for determining actual copyright status for any reuse of the material. |
SUDOC number | A 77.708:987/1 |
Digital publisher | The University of North Carolina at Greensboro, University Libraries, PO Box 26170, Greensboro NC 27402-6170, 336.334.5482 |
Full-text | [Fo; Building Use Only 1 Editor Joan C. Courtless Managing Editor Sherry Lowe Family Economics Review is published each quarter by the Family Economics Research Group. Agricultural Research Service. United States Department ol Agriculture. Washington. D.C. The Secretary ol Agriculture has determined that the publication ol this periodical is necessary in the transaction ol the public business required by law ol this Department. Use ollunds lor thlS periodical has been approved by the Director ol the Ollice ol Management and Budget through March 31. 1987. Contents may be reprinted without permission. but credit to Family Economics Review would be appreciated. Use ol commercial or trade names does not imply approval or con-stitute endorsement by USDA Family Economics Review is lor sale by the Superintendent ol Documents. U.S. Government Printing Ollice. Send subscrip-tion orders. change ol address. and single copy requests to Superintendent ol Documents. U.S. Government Printing Ollice. Washington. D.C. 20402. (See subscription form in back ol this issue.) Suggestions or comments concerning this publication should be addressed to: Joan C. Courtless. Editor. Family Economics Review, Family Economics Research Group. USDNA.RS. Federal Building. ~ Economics Review 1987 No. 1 Contents: Recent Trends in Clothing and Textiles Joan C. Court less Diets of American Women by Income, Spring 1977 and Spring 1985 Katherine S. Tippett and Howard A. Riddick Abstracts Recent Developments in Automobile Financing Measures of Compensation Using Consumer Expenditure Survey Data Spending Patterns of U.S. Households Money Income of Households, Families, and Persons in 1984 Regular Features New Publications Cost of Food at Home Consumer Prices Room 442A. Hyattsville. Md. 20782. Issued February 1987 1 10 18 19 24 26 30 29 32 33 Recent 'fiends in Clothing and 'Iextiles 1 By Joan C. Courtless Family economist Clothing Expenditures and Prices In 1986 apparel and upkeep prices, as measured by the Consumer Price Index, rose 1. 9% over 1985 (table 1), a small increase but still greater than the 0.6% increase in prices for the "all items" category. For the most part, increases or decreases in the various clothing categories were modest; only prices for girls' separates and sportswear increased by as much as 10%. Prices for men's coats and jackets declined for the second consecutive year. Annual spending for clothing and shoes in 1986 is estimated at $682 per person according to preliminary figures for the first three quarters of 1986 (table 2). This amount exceeds 1985 spending by $32 per person; all of this increase can be attributed to increased buying--higher prices were not a factor as in previous years. Since 1982, per capita expenditures for clothing and shoes have increased by $146; only 24% of this increase can be attributed to higher prices. This real increase in clothing purchases by consumers over the last several years may have both demographic and economic explanations: The baby boom cohort is maturing into an age group with higher earnings and spending power; the number of two-earner families is increasing; and the educational level for women entering the work force is higher (increasing their earnings potential) (~). In addition, clothing has been a good value in recent years because, until 1985, prices overall increased faster than prices for clothing (!_;!) • 1 This article is adapted from a paper presented at the Annual Agricultural Outlook Conference in December 1986 in Washington, DC. Trade in Textiles, Apparel, and Footwear Although the total U.S. apparel market expanded at a rate of 4.7% during 1985, imports grew at a rate of 8.8% (~_). Apparel imports had a 43% market share in 1985 (!!!_); shoe imports took 77% of the U.S. market, and sweater imports comprised 70% (1). The trade deficit in textiles and apparel reached $13.6 billion in 1985, the largest deficit in history and 10% higher than in 1984. The combined textile and apparel trade deficit for 1986 will probably exceed this amount; for the first 8 months of 1986 it was 22% higher than during the same period in 1985. The trade deficit for textiles for the January-August 1986 period was up 42% from the same period in 1985; the trade deficit for apparel was 19% higher for the first 8 months of 1986 than during the same period in 1985. Volume of textile and apparel imports (in square yards equivalent) was up 24% for the first 8 months of 1986 compared with the same period in 1985. Corresponding increases in volume by fiber were cotton, 28%; wool, 8%; and manmade, 23%. In February 1986 President Reagan announced a new textiles and apparel program for Caribbean nations. This program is designed to provide increased access to the U.S. clothing market by increasing quotas for apparel assembled in a Caribbean nation from cloth woven and cut in the United States. Participating countries include Jamaica and Haiti, with preliminary agreements (memoranda of understanding) with the Dominican Republic, Trinidad/Tobago, and Barbados. Any increase in Caribbean imports by the United States is to be balanced by a corresponding decrease in import levels for all other countries. In March 1986 President Reagan determined that the global quotas maintained by the Government of Japan on imports of leather and leather footwear, (1) denied benefits due the United States under the General Agreement on Tariffs and Trade (GATT), (2) were unreasonable, and (3) constituted a burden and restriction on U.S. commerce. Consequently, the United States has agreed 1987 No.1 Family Econom ic s Re view Table 1. Percent change in prices of apparel and upkeep, September 1986 1 December 1985 to Group and i tern All i terns ••••••••••••••••••••••••••••••••••••••••••••••••••• Apparel and upkeep ..................................... . Men's and boys' clothing ............................... . Men's Suits, sport coats, and jackets ••••••••••••••••••••• Coats and jackets •.....•.•...•..•.......••.•...•..• Furnishings and special clothing •••••••••••••••••••. Shirts .......................................... • .. • Dungarees, jeans, and trousers ••••••••••••••••••••• Boys' ....................•................... · · · • • • • · Coats, jackets, sweaters, and shirts •••••••••••••••• Furnishings ....................................... . Suits, trousers, sport coats, and jackets ••••••••••• Women's and girls' clothing ............................ . Women's Coats and jackets •..•.......•...........•....•.•... Dresses ........................ · · · · · · · · · · · · · · · • • • • · Separates and sportswear ••••••••••••••••••••••••••• Underwear, nightwear, and hosiery ••••••••••••••••• Suits ............... • · . · · · · · • • • • • · • • • · • · · · · · · · · · · · · · Girls' .........., ....................................... Coats, jackets, dresses, and suits Separates and sportswear ••••••••••••••••••••••••••• Underwear, nightwear, hosiery, and accessories •••• Infants' and toddlers' clothing Other apparel commodities ............................. . Sewing materials and notions ••••••••••••••••••• ~ ••••• Jewelry and lug gage . ................................ . Footwear Men's Boys' and girls' ............•......................... Women's .......................... · • • · · · •. •. • • · · · • • · · · Percent change (annualized) .6 1.9 .1 .4 7.4 -3.5 .3 -.6 -2.2 -1.0 l.O -1.0 -2.7 2.8 2.6 -.4 7.7 5.2 -1.3 4.5 3.1 -2.4 10.2 .1 3.8 4.4 .6 6.0 -1.0 .2 1.6 -4.4 1Consumer Price Index for Urban Wage Earners and Clerical Workers ( CPI-W). Source: Calculated from the CPI Detailed Report, December 1985 and September 1986, U.S. Department of Labor, Bureau of Labor Statistics. 2 Family Economics Review 1987 No.1 to accept compensation from Japan (an estimated value to the United States of $236 million) and to increase duties on $24 million of U.S. imports from Japan. The settlement also involves tariff concessions on $2 • 3 billion worth of U • S • ex ports to Japan in 1984. Because Japan notified GATT of its intent to remove global quotas on leather and leather footwear imports and replace them with new tariff measures, the settlement will increase opportunities for American producers to sell products in Japan. On July 31, 1986, the Arrangement Regarding International Trade in Textiles (Multi-Fiber Arrangements) was extended until July 31, 1991. The new agreement provides that almost all textile imports are available for quota control, including linen, ramie, and silk blends. However, renegotiation of bilateral agreements prior to their expiration date is no longer permitted. Before signing the new trade pact, the United States cancelled bilateral areements with Hong Kong, Taiwan, and South Korea, and replaced them with new agreements limiting annual import growth rates to 1%, 0.5%, and 0.8%, respectively (!). Table 2. Annual expenditures on clothing and shoes 1 Percent of Aggregate Per capita personal expenditures expenditures 2 consunption Year expenditures B'i ll ions Bill ions of of Constant Current Constant Current constant current dollars dollars dollars dollars dollars dollars (1982) (1982) (1982) 1982 ............. 536 536 6.1 6.1 124.4 124.4 1983 ............. 566 577 6.2 6.0 132.6 135.1 1984 ............. 603 622 6.4 6.1 142.7 147.2 1985 ............. 612 650 6.3 6.0 146.0 155.2 1986 3 ............ 647 682 6.5 6.0 155.9 164.3 1 Includes yard goods, but excludes services such as cleaning and repairing clothing and shoes. 2 Calculated by dividing aggregate expenditures for each year by population figures for July of each year. 3Preliminary figures--average of estimates for first 3 quarters of 1986 (i.e., seasonally adjusted quarterly totals at annual rates). Sources: Calculated from U.S. Department of Commerce, Bureau of the Census, 1986, Population estimates and projections, Current Population Reports, Series P-25, and personal communication; and U.S. Department of Commerce, Bureau of Economic Analysis, 1986, Survey of Current Business 66(7) :37 (tables 2.2 and 2 .3), and personal communication. 1987 No.1 Family Economics Review J Supplies, Prices, and Consumption of Fibers World production of fibers was 3% lower in 1985 than in 1984. Natural fiber production (primarily cotton) was down by 7%, decreasing from 58% of all fiber production in 1984 to 55% in 1985 (11). The 1986 U.S. mill consumption of total fibers is estimated at 49.8 pounds per capita. This includes 13.3 pounds of cotton, 0 .6 pound of wool, and 35 .9 pounds of manmade fibers. Per capita use in 1985 was 46.6 pounds, including 11.8 pounds of cotton, 0.5 pound of wool, and 34.3 pounds of manmade fibers. Cotton. The 1986 U.S. cotton crop is expected to be about 10.7 million bales, down 21% from 1985. Cotton prices dropped sharply (from 66 cents to 26 cents a pound) when the 1985 farm bill went into effect on August 1, 1986. Since the world price has been around 23 cents a pound, U.S. cotton will be competitive in international markets. Exports for 1986-87 are estimated at 6.3 million bales, giving the United States a 29% share of world cotton trade (compared with 10% in 1985-86). Although cotton textile imports were up only 2% in 1985 over 1984, during January to August 1986 cotton imports were up 17% over the same period in 1985. Hong Kong, China, Taiwan, and Korea supplied 50% of ~ .S. cotton textile imports during 1985. For the first time since 1970 (14, 15, 19), cotton's share of the apparel market ~ached 40% in 1985. Wool. Mill consumption of apparel wool during the first 6 months of 1986 was 28% above the 1985 level but 4% below the 1984 level. Average U.S. farm prices for wool in 1986 are expected to be unchanged from 1985, about 65 cents per pound (greasy). Imports of raw wool during the first 6 months of 1986 were 26% above imports a year earlier but 4% below the 1984 level. Over 68% of all wool consumed domestically in 1985 was imported. Wearing apparel and carpets or rugs represented 40% and 27% of U.S. wool textile imports in 1985. 4 Family Economics Review 1987 No.1 Mohair. U.S. mohair exports in 1986 are expected to be about 3% higher than in 1985 . During January to June, 71% of mohair exports went to the United Kingdom. World production of mohair is expected to be about 50 million pounds, 13% above the 1985 level. About 14 million pounds, 28% of this amount, will be produced in the United States. Manmade fibers. Shipments of manmade fibers by U.S. producers during the first 8 months of 1986 were 2% above shipments a year earlier (.!1_) and 3% above the 1984 level (~). Demand has increased for acrylic staple fibers, used in active sportswear; polyester staple fibers, used in knit bottomweight apparel; and for nylon, used in carpets. Shipments of polyester filament decreased because of lower demand for textured yarn in slacks, dresses, and skirts. Developments in Fibers and Fabrics The official name for a newly developed American wool/ cotton blend fabric is "Alamera." The method for blending wool and cotton fibers on the cotton spinning system was developed by the American Wool Council. An Alamera label can be used only on fabric made in America from American wool and cotton. The fabric offers a luxurious hand and year-round versatility by combining thermostatic qualities of wool with the comfort of cotton (~_). Intimate blends ranging from 50% cotton/50% wool to 80% cotton/20% wool can be achieved. "Valhalla, 11 a new fabric incorporating 80/20 Supima cotton and American wool, was available in 1986 in men's slacks (!.Q) • A new family of fabrics, to be sold under the certification mark 11 Coo1Max, 11 is designed to regulate body temperature during prolonged physical exertion by increasing the air flow through the fibers to rapidly evaporate perspiration. Hydrophobic polymer fibers (for minimum absorption and maximum ventilation) have four channels that transport moisture away from the body along the fiber's surface. This shape of fiber increases surface area by 20% over that of a round fiber, and encourages air flow for fast moisture evaporation <.V. A dual-denier staple polyester fiber will be used in blended knit fabrics to be sold under the certification mark "Great Feelings." These fabrics (for top-weight knits) must be made of at least 50% Great Feelings fibers. Each fiber consists of two strands, one more dense than the other, which produces a fabric that is loose, airy, soft, lightweight, and shrink resistant. Several manufacturers will feature this fabric in 1987 (_~). Fabrics knitted of "Celebrate" acetate will be monitored and tested on a continuing basis and then licensed if they meet performance specifications. Celebrate acetate is a filament yarn with excellent draping and dyeing characteristics. Fabrics are colorfast, moisture-absorbent, static-free, and have a silky hand <.~). A new cellulosic solvent-spun fiber is being developed in England. Known as Genesis, the new fiber will be classified separately from viscose or rayon. In testing, Genesis has exhibited good wash stability, wet strength, dyeability, static resistance, and absorbency (~_). "Courcel" is a hollow, inflated rayon fiber with a capacity to absorb 40% more water then regular rayon. The hollow core provides good wicking (even after repeated washing and drying) and thermal insulation. Courcel was developed for blending with polyester, acrylic, or cotton--it is not used alone because it lacks yarn strength. In blends with manmade fibers, Courcel adds softness and absorbency; in cotton blends, it also adds a lustrous appearance. J.P. Stevens & Co., Inc., has produced "Thermosoft" yarn, consisting of 50% Courcel rayon and 50% Kodel polyester, for use in thermowear, sports or leisure wear, conventional undergarments, and sleep wear (~_). The Orion division of E.I. du Pont de Nemours & Co. Inc., has decided to stress the functional properties of Comfort 12 for the activewear (including socks) and children's markets. Marketing strategy for Comfort 12 had previously focused on fashion characteristics related to women's wear applications. In addition, Du Pont is broadening its specifications for Comfort 12 certification in women's knitwear to include blends of 75% Comfort 12 with 25% of another fiber such as rayon, silk, linen, or nylon. In the past, such certification indicated 100% Orion content (1_). A new acrylic fiber with a round crosssection has been produced for use in socks, called Acrilanll Hi-Bulk. Socks made of this fiber have 50% longer wear life, superior softness, and superior dyeability, compared with socks knitted of other acrylic fibers (!) • "Thermax" hollowcore polyester, introduced in 1985 and widely accepted for thermo underwear applications, is now being used in gloves, hats, socks, and sock liners. These accessories will be available in fashion colors and designs (1_). USDA Research on Fibers and Fabrics Scientists at Texas Tech University have grown cotton fibers in the laboratory directly from single cotton cells, without growing any other part of the cotton plant. Financed in part under a cooperative research agreement with USDA's Agricultural Research Service, further research will focus on determining the best media for cotton cell fiber differentiation. Test-tube cotton provides an opportunity for studying the growth and development of cotton plants, but it is unlikely to replace field-grown cotton in the foreseeable future (_§). On-going research at USDA's Southern Research Center in New Orleans has developed a method for binding cotton and polyester fabrics with polyethylene glycols, or PEG's. These chemicals can absorb and store heat when surrounding temperatures rise, and then release heat when temperatures fall. By adjusting the amount of the various PEG's 1987 No.1 Family Economics Review 5 incorporated into the fabrics, scientists hope to produce protective materials suitable for firefighters, Artie survival gear, building insulation, draperies, and packaging materials. A previously developed thermal fabric proved unable to withstand laundering or exposure to moisture. Two fabric treatments invented by USDA scientists have recently been granted patents and are available for licensing. One gives cotton/polyester and other blended fabrics a finish that is both permanent press and flame retardant by chemically binding the treatment compounds inside the fabric. The other covers several nonformaldehyde finishing agents that allow cotton fabrics to be dyed after the cloth is made and treated to be wrinkle resistant and permanent press. A process for curing leather by radiation has been developed by scientists at the USDA's Eastern Regional Research Center in Philadelphia. The radiation is less powerful than x rays and poses no hazard to people wearing the cured leather. The leather is covered with a wet film containing chemicals composed of small molecules such as acrylics. A conveyor belt carries the leather through radiation equipment (which has built-in shielding), where an electron beam solidifies the mixture by linking the small molecules into polymer chains that fix to the leather as a tough coating. Advantages to this method include superior scuff resistance for the consumer, and elimination of chemical pollution for the industry (instead of evaporating, the chemicals become part of the coating). Also, because savings in energy costs, plant space, and labor will permit prices to decrease, U.S. products will be more attractive to both domestic and foreign co~sumers of leather, thus reducing a current multibillion-dollar trade deficit in the leather industry. 6 Fa mi ly Econom i cs Rev i ew 1987 No. 1 Trends in Retailing In order to offset the price advantages of imports, the American textile and apparel industries should be able to respond quickly to market needs. Several major textile and apparel manufacturers are cooperating in an effort to reduce the time it takes to place a retailer's order in the store. (Industry average time has been estimated at 66 weeks--including time required to make both the fiber and cloth.) By sharply reducing the time garments spend on warehouse shelves or in transit, apparel prices can become more competitive with imports· Benefits to the retailer would include lower inventory costs and increased opportunities to correctly assess consumer demand, reducing the need for markdowns of slow selling apparel. Methods by which production time can be decreased include the use of computer systems that will measure, color code, and inspect fabric as it comes off the looms, and then transmit this information to eliminate the need for a second inspection, so that the fabric goes directly to the cutting room. Also, computers that design patterns for knitted garments and program the knitting machines decrease total production time by several days (!1) • The popularity and large numbers of off-price, discount, or factory outlet stores have led to frequent sales and price slashing by department and specialty stores in an effort to remain competitive. Many consumers rarely shop "full price" and seldom buy anything that is not on sale· Real value is not easily determined, however. Merchandise in an off-price store can be several seasons old, counterfeit, discontinued goods, or factory overruns. Fake markdowns are sometimes written on the price tag before the item ever reaches the sales floor. A "comparable price" is supposed to mean the item has been sold somewhere at that price. Federal Trade Commission guidelines define deceptive practices (such as phony sales and false savings claims) as those that are likely to mislead the consumer and influence his choice of product· Monitoring and enforcement in several States has led to fines, lawsuits, and statewide rules as to what constitutes a sale. Gro~th in off-price retailing is slowing, however. New retailing approaches will emphasize service and ambiance, and some foreign retail chains will compete with department stores for customers. Retail use of electronic displays is increasing; video tapes help promote products and services on site. Some success has been achieved using electronic means as an aid to buying. In-store ordering of merchandise not in stock, but seen in an electronic catalog , is accomplished with assistance from store sales personnel. Transactional systems, in which consumers complete a sale electronically, are not developing as quickly as informational systems; consumers remain uncomfortable about buying goods through a computer. Some firms that anticipated a market for purchasing via computer are no longer in that business. A chain of television channels, known as the Home Shopping Network Inc., sells between 30,000 and 40,000 different items to viewers through cable and satellite. Most of the merchandise (jewelry, housewares, appliances, china, and electronics) is acquired through liquiq_ations and closeouts, and is advertised as deeply discounted from regular prices. A toll-free number for placing an order is flashed on the television screen as the merchandise is described. Although less than 5% of potential viewers actually purchase, net income amounts to millions of dollars each year. Federal Legislation, Regulations, and Dissemination of Information Related to Textiles and Apparel Both houses of Congress have passed legislation requiring the U.S. Department of Commerce to collect and publish quarterly statistics on the domestic apparel and textile industries, and requiring apparel and textile manufacturers to take part in these surveys. Currently, the Commerce Department collects annual data on these industries, and information needed to administer import restraint programs is often too late to be optimally effective. Since December 1984, the employment of homeworkers in the knitted outerwear industry has been permitted, provided the employer first obtained a certificate from the U.S. Department of Labor. The certification program in knitted outerwear was implemented to permit law-abiding employers to employ homeworkers who want or need to work in their homes, and to enable the Department to effectively enforce the Fair Labor Standards Act (FLSA) with respect to these homeworkers. 2 A review of the investigations conducted by the Department to ensure compliance with the FLSA demonstrated that the knitted outerwear certification program is an acceptable alternative to a total ban on homework. However, homework in the women's apparel, jewelry manufacturing, gloves and mittens, button and buckle manufacturing, handkerchief manufacturing, and embroidery industries remains prohibited by regulations that have not been substantively changed since the forties. In the belief that the existing prohibition against homework in these six industries is counterproductive (employers have little incentive to comply with FLSA wage provisions because their very existence violates the FLSA), the Department proposes to apply the same certification procedure to the remaining restricted industries. The Federal Trade Commission (FTC) amended the Rules and Regulations under the Textile Fiber Products Identification Act, effective July 9, 1986, to include generic names and definitions for two new manufactured fibers. From Celanese Corporation comes "PBI," a manufactured fiber in which the fiber-forming substance is a long-chain aromatic polymer having reoccurring imidazole groups as an integral part of the polymer chain. 11Sulfar, 11 from Phillips Fibers Corporation, is a manufactured fiber in which the fiber-forming substance is a 2 For further information, see "Recent Trends in Clothing and -Textiles, 11 by Joan C. Courtless, Family Economics Review 86(2) :25. 1987 No.1 Family Economics Review 7 long-chain synthetic polysulfide in which at least 85% of the sulfide linkages ( -S-) are attached directly to two aromatic rings. Petitions for new generic names must provide sufficient information to meet the following three criteria established by the FTC: The fiber must have a chemical composition radically different from other fibers, and that distinctive chemical composition must result in distinctive physical properties of significance to the general public. The fiber must be in active commercial use or such use must be immediately foreseen. The grant of the generic name must be of importance to the consuming public at large, rather than to a small group of knowledgeable professionals such as purchasing offices for large Government agencies. Under current Federal Trade Commission (FTC) rules, manufacturers must list only one safe-care method on a label, even if other methods are also safe. Manufacturers are required to test only once any care method they put on a clothing label. When garments are returned to the retailer because they failed to survive recommended cleaning procedures, the retailer usually requests restitution from the manufacturer. To minimize such returns, some manufacturers have been using "dry clean only" labels on garments that are washable because in most instances dry cleaning is preferable to incorrect laundering; exceptions exist, however, and the consumer must rely on the dry cleaner to advise him accordingly. The U.S. Department of Treasury has announced a new "textile fraud hotline" in Georgia, North Carolina, and South Carolina. The number is toll free and available 24 8 Family Economics Review 1987 No.1 hours a day to receive anonymous tips of textile fraud from people in the textile industry or from concerned citizens. The U.S. Customs Service will pay cash rewards ranging from $250 to $2,500 for anonymous information (depending on the circumstances and outcome) and up to $250,000 to persons who come forward. Examples of textile fraud include false country of origin labels, removing country of origin labels and substituting "made in the U.S.A." labels, false description of merchandise (weight, quantity, or fibers) to circumvent quotas, and altering the appearance of merchandise to avoid higher duties. A Fiber and Textile Information Center has been created in the National Agricultural Library (NAL) at Beltsville, Maryland, to maximize service and support for the U.S. Department of Agriculture's research, education, and extension programs. Resources on textile production, use, and care in clothing and in the home or work environment may be accessed through AGRICOLA, the library's computerized database system. In addition, current publications (including over 75 periodicals, newspapers, and research journals that relate to fibers, textiles, clothing, home furnishings, sewing, and needlework) are maintained at the center. A unique feature of the Fiber and Textile Information Center is the collection of historical records of USDA research on natural fiber crops dating back to the early 1900's that was obtained from Agricultural Research Service laboratories. This comprehensive collection contains manuscript materials, reference cards and reprints, photographs, and specimens relating to more than 300 species of plants (excluding cotton). New books, journals, audiovisual materials, and computer software will be identified and acquired as NAL staff and funding permit. Also, historical collections and oral and video histories, which will help enrich the national collection, will be located and acquired. REFERENCES 1. American Textile Manufacturers Institute, Inc., Economic Information Division. 1986. Textile Hi Lights. 14. 15. Textile Organon. P• 156. . 1982. P• 214. 1974. Vol. 45, No. 11, Vol. 53, No. 11, September issue. 16. . 1985. Vol. 56, No. 9, 2. Cressy, Terrence. 1986. E.I. du Pont P· 203. de Nemours & Co. Inc. [Personal commu- 17. . 1986. Vol. 57, No. 7' nication on September 18.] P· 156. 3. Federal Trade Commission. 1986. Textile 18. . 1986. Vol. 57' No. 8, Fiber Products Identification Act; request for establishment of a generic name. Federal Register 51(110) :20803- 20809. 4. Halpern, Mitchell. 1986. U.S. production figures show decline in outerwear, except sweaters. Knitting Times 55(8): 16-18. 5. Hunter, N. Alan. 1986. The apparel market of the 1990s--A demographic view. Apparel World 7 (1): 20-21. 6. Knitting Times. 1985. Vol. 54, No. 11, p. 82. 7. 19 8 6 • Vol. 55 , No. 5 , pp. 87-88. 8. • 1986. Vol. 55, No. 6, p. 72. 9. Lettich, Jill. 1986. Courtauld's research aimed at new fiber to debut next year. Knitting Times 55(8):61-64, 89. 10. • 1986. Heavier constructions give newer knits more tailored looks. Knitting Times 55(9) :77-79. 11. Reagan, Ronald. 1986. Presidential Documents: Increase in the rates of duty on certain articles from Japan; Determination under Section 301 of the Trade Act of 197 4. Federal Register 51(53):9435-9438. 12. Sease, Douglas R. 1985. Move to fight apparel imports is set. The Wall Street Journal, December 17 issue. 13. Slater, Courtenay. 1986. Markets: Sluggish spending. American Demographics 8(5):4. P• 184. 19. . 1986. Vol. 57, No. 9, PP· 205, 226. 20. U.S. Department of Agriculture, Agricultural Research Service. 1986. Electron beam puts a shine on leather. ~ricultural Research 34(2):14. 21. • 1986. Agricultural Research 34(3):16. 22. • 1986. Agricultural Research 34(4):16. 23. • 1986. Quarterly Report of Selected Research Projects. April-June issue. 24. , Economic Research Service. 1986. Cotton and Wool Situation and Outlook Report. CWS-45. 25. • 1986. Cotton and Wool Situation and Outlook Yearbook. CWS-46; and personal communication with John Lawler. 26. , The National Agricultural Library. 1986. Information Alert, April 30 issue; and personal communication with Kate Hayes. 27. U.S. Department of Commerce, International Trade Administration. 1986. Textile and Apparel Import Report; and personal communication with Shirley Hargrove. 28. U.S. Department of Labor, Employment Standards Administration. 1986. Employment of homeworkers in certain industries. Federal Register 51(162): 30036-30043. 29. U.S. Department of the Treasury, United States Customs Service. 1986. Customs regulations amendments relating to Caribbean Basin initiative and generalized system of preferences. Federal Register 51(110) :20810-20811. 1987 No.1 Family Economics Review 9 Diets of American Women by Income, Spring 1977 and Spring 1985 By Katherine S. Tippett and Howard A. Riddick Home economist and nutritionist Nutrition Monitoring Division Human Nutrition Information Service Food selections made by low-income women in 1985 differed somewhat from those made by high-income women. Nevertheless, both lowand high-income women had nutrient intakes that were above the Recommended Dietary Allowances (RDA) for 8 of 15 nutrients examined and below the RDA for vitamin B6 , calcium, magnesium, iron, folacin, and zinc. In general, mean intakes by women for nutrients that were below the RDA in 1977 were also below the RDA in 1985. The findings presented here are from the Continuing Survey of Food Intakes by Individuals (CSFII) conducted by USDA's Human Nutrition Information Service (HNIS). 1 The results are group means for women 19 to 50 years of age based on 1 day of dietary information collected by personal interview in the spring of 1985. The income categories used in this article are based on the poverty guidelines provided by the U.S. Department of Health and Human Services (7). Women living in households with before-taxincomes for the previous year at or below 130% of the poverty guidelines are classi-fied in this article as low income, those with incomes between 131% and 300% of the guidelines are classified as middle income; and those with incomes of greater than 300% of the guidelines are classified as high income. The data exclude 191 women living in households that did not report income. Black women accounted for 30% of the low-income group, 5% of the middle-income group, and 3% of the high-income group. (For a comparison of diets of black and white women, see box on p. 11.) 1More detailed information about the purpose, methodology, and results of the CSFII may be found in references l• ~. and 6. 10 Family Economics Review 1987 No.1 The CSFII data are compared with data collected from women of the same ages in the spring of 1977 as part of USDA's Nationwide Food Consumption Survey 1977-78. 2 Counts of women for 1977 and for 1985 are as follows: Income 1977 1985 (number) Low ..•....•...... Middle .........•• High ............ . 350 693 814 293 512 508 The nutrient contents of foods reported in the survey were estimated using nutrient data developed by the HNIS' Food Composition Research Branch (!_, 1). Nutrient intakes in 1977 reflect food composition data available at the time of the 1977 survey. Those in 1985 reflect the availability of new data, as well as certain changes in the nutrient content of foods attributable to new varieties and species, and new enrichment and fortification levels of foods on the market. The 1980 RDA were used to evaluate both the 1977 and the 1985 data. FOOD AND NUTRIENT INTAKES IN 1985 Food intakes. Food intakes by women were measured in two ways--the percentage of respondents using selected food items (table 1, p. 12) and mean intakes (in grams) of food ingested (table 2, p. 13). Considering both of these measures, low-income women had higher intakes of meat, poultry, and fish; and eggs, but lower intakes of milk and milk products; vegetables; fruits; fats and oils; sugars and sweets; and beverages than highincome women. This generalization, however, obscures differences within food groups: Within the meat, poultry, and fish food group, low-income women compared with high-income women had higher mean intakes of all meat, poultry, and fish subgroups except meat mixtures. Low-income women had lower mean intakes of meat mixtures than 2 For information on the survey, see "The 1977-78 Nationwide Food Consumption Survey," by Robert L. Rizek, Family Economics Review, fall 1978. pp. 3-7.) DIETS OF BLACK AND WHITE WOMEN In the CSFII, information on race was self-reported. Of the 1, 486 women who reported race, 1, 275 were white, 143 were black, and 68 were of another race. Of the white women who reported income, 16% were low-income; of the black women, 68%. In several categories of food and nutrient intakes, blacks and whites differed. Although some of the differences may be attributable to income rather than to race, the small sample of blacks precludes direct comparisons of blacks and whites by income group. Group means in small sample sizes may be affected by particularly high or low intakes of certain foods. Therefore, the food and nutrient intakes for black women presented below should be used with caution. In 1985, the mean intake by black women of meat, poultry, and fish was 226 gm, compared with the mean intake by white women of 172 gm. Meat, poultry, and fish was reported by 93% of black women, compared with 88% of white women. Black and white women had similar intakes of beef. Black women had higher intakes of pork; poultry; fish and shellfish; and frankfurters, luncheon meats, sausages, and slightly lower intakes of meat mixtures than white women. The mean intake of milk and milk products by black women was substantially lower than that for white women (80 gm and 221 gm, respectively). Fewer than one-half of black women compared with four-fifths of white women, reported using a milk product on the surveyed day. Almost all of the fluid milk drunk by black women was whole milk (49 gm), rather than lowfat or skim milk (4 gm). White women reported drinking both whole and lowfat or skim milk, although their mean intake of low fat or skim milk was higher than their mean intake of whole milk (88 gm and 66 gm, respectively). The mean intake of eggs by black women was 26 gm, compared with 17 gm by white women. A higher proportion of black than of white women reported using eggs (36% vs. 23%). Black women had lower intakes of vegetables than did white women (128 gm and 176 gm, respectively). Of the black women, 69% reported vegetables; of the white women, 85%. Among the vegetable subgroups, black women had a higher intake of dark green vegetables than did white women. The mean intake of fruits by black women was 107 gm, compared with the mean intake of white women of 114 gm. Fruits were reported by 37% of black women and 46% of white women. The mean intake of grain products by black women was 247 gm compared with 200 gm for white women. A lower percentage of black (90%) than white (94%) women, however, reported a grain produc t on the surveyed day. Black women had lower intakes than white women of fats and oils, sugars and sweets, and total beverages. Compared with white women, black women had lower intakes of coffee, tea, and low-calorie carbonated soft drinks, and higher intakes of fruit drinks and ades. Black and white women had similar intakes of regular soft drinks. Mean intakes by women of both races were above the RDA for protein, vitamin A, ascorbic acid, thiamin, riboflavin, niacin, vitamin B 12 • and phosphorus. Mean intakes of both groups were below the RDA for the following: White (percentage of RDA) Food energy ••••••••••••• 81 82 Vitamin B6 .............. 58 62 Calcium ................. 58 82 Magnesium ••••••••••••••• 60 73 Iron .................... 64 61 Folacin •••••••••••••••••• 47 51 Zinc .................... 61 59 Vitamin E ............... 93 98 In 1985, black women obtained 17% of their food energy from protein; white women, 16%. The contribution of fat to food energy was also similar--36% for black women and 37% for white women. The mean intake of fiber by black women was 10 gm; by white women, 12 gm. Between 1977 and 1985 both black women and white women increased their mean intakes of fish and shellfish, meat mixtures, total grain products, all grain products subgroups, and total beverages , and decreased their mean intakes of meat, whole milk, eggs, vegetables, and fruits. The mean intake of skim milk by white women increased by 60% between 1977 and 1985, but the mean intake of skim milk by black women did not change. 1987 No.1 Family Economics Review 11 Table 1. Percentage of women 1g to 50 years of age using selected foods in a day, by household income level, spring 1985 Food group Meat, poultry, and fish •••••••••••••••••••••• Beef ...................................... . Pork Frankfurters, luncheon meat, sausages ••••• Poultry ..... ............................... . Fish and shellfish ......................... . Mixtures 1 •••••••••••••••••••••••••••••••••• Milk and milk products ••••••••••••••••••••••• Fluid milk Whole milk Skim milk .....••................•..•••... Cheese Yogurt Cream/ milk desserts ....................... . Eggs ••.•.•••••••••.•. • • • • • • • · • • • • • • • • • • • • · • • • Legumes, nuts, seeds ....................... . Vegetables .............................. • ... . White potatoes ............................. . Tomatoes .............................•..... Dark green . ............................... . Deep yellow ............................... . 0 th er ..................... • • · · · · · · · · · · · · · · · Fruits Citrus fruits and juices •••••••••••••••••••• Other fruits and juices ••••••••••••••••••••• Grain products ............................•.. Yeast breads, rolls ••••••••.•••••••••••••••• Other baked goods ......................•.. Cereals, pasta ..•........................... Mixtures 2 •••••••••••••••••••••••••••••••••• Fats and oils . ..... •• ......................... Sugars and sweets •••••••••••••••••••••••••••• Beverages ................................... . Alcoholic beverages ........................ . Coffee ..................................... . Tea ...•............ ........................ Fruit drinks and ades •••••••••••••••••••••• Carbonated soft drinks ••••••••••••••••••••• Regular ...•..................•.•..••..... Low-calorie •..........•.•...•............. Low 89 24 24 31 22 11 30 68 46 31 13 27 1 19 29 17 74 44 19 6 5 54 36 15 25 93 67 40 38 25 58 54 91 7 47 26 24 49 41 9 Income Middle (percent) 90 24 20 27 20 12 36 77 52 26 27 34 5 25 27 22 87 46 30 10 10 71 48 27 33 94 74 54 31 28 66 55 91 14 48 33 12 55 36 21 1 Mixtures that are mainly meat, poultry, or fish, such as stews and sandwiches. 2 Mixtures that are mainly grains, such as pizza and pasta with sauce. High 87 22 20 20 19 11 44 83 52 23 31 38 6 29 21 24 85 44 30 10 12 69 55 30 42 95 70 62 30 28 67 56 96 22 60 34 11 58 34 27 Source: Unpublished data from the Continuing Survey of Food Intakes by Individuals, 1985, Human Nutrition Information Service, U.S. Department of Agriculture. 12 fam i ly Economics Review 1987 No.1 Table 2. Mean intakes by women 19 to 50 years of age, of selected foods in a day, by household income level, spring 1985 Food group Meat, paul try, and fish ..................... . Beef Pork Frankfurters, luncheon meat, sausages •••• Poultry ......... .......................... . Fish and shellfish ..••....•................. Mixtures 1 ••••••••••••••••••••••••••••••••• Milk and milk products ••••••••••••••••••••••• Fluid milk Whole milk •.......•...................•. Skim milk •••.•..•.••....•..••.....••.... Cheese Yogurt Cream/ milk desserts ...................... . Eggs •••••••••.••••.•• · • • • • • • • • • • • • • • • • • • • • • • • Legumes, nuts, seeds ....................... . Vegetables .................................. . White pot a toes ...•.•.•....•..•.•........... Tomatoes .••...... . ........................ Dark green . .............................. . Deep yellow .............................. . Other ............................... · · · · · · Fruits Citrus fruits and juices ••••••••••••••••••• Other fruits and juices •••••••••••••••••••• Grain products .............................. . Yeast breads, rolls ....................... . Other baked goods ....................... . Cereals, pasta .. .......................... . rdixtures 2 ••••••••••••••••••••••••••••••••• Fats and oils ................................ . Sugars and sweets ......... .................. . Beverages ... ................ · · · · · · • • • · · • · • · · · Alcoholic beverages . ...................... . Coffee . .............................. • • · · · · Tea ••••••••••••••••••••••••••••••••••..••• Fruit drinks and ades ••••••••••••••••••••• Carbonated soft drinks •••••••••••••••••••• Regular ................ · • • · • • • · · · · · · · • • • Low- calorie ............................. 188 31 16 15 29 13 77 163 121 77 43 12 1 20 22 21 144 58 13 10 3 60 86 36 49 234 47 42 61 84 10 15 819 50 276 150 90 253 210 42 Incane Middle High (grams) 180 179 27 26 14 13 15 9 19 22 14 12 84 94 212 206 151 136 65 50 86 86 14 20 11 11 22 28 19 16 20 19 177 186 47 48 19 21 12 10 7 8 91 99 121 140 59 68 62 72 210 209 52 44 48 54 39 32 71 79 16 21 23 18 919 1,019 94 110 309 394 174 169 57 38 285 309 164 170 118 138 1 Mixtures that are mainly meat, poultry, or fish (such as stews and sandwiches) . 2 Mixtures that are mainly grains (such as pizza and pasta with sauce). Source: Unpublished data from the Continuing Survey of Food Intakes by Individuals, 1985, Human Nutrition Information Service, U.S. Department of Agriculture. 1987 Ho. 1 Fam ily Ec onomics Review 13 did high-income women (77 gm and 94 gm, respectively). 3 Also, a lower proportion of low-income than high-income women reported meat mixtures on the surveyed day (30% and 44%, respectively). Low-income women reported lower intakes of all milk and milk products (fluid milk yogurt, cream and milk desserts, and cheese) than did high-income women. One exception, within the fluid milk subgroup, was the higher mean intake of whole milk by low-income women (77 gm) than by high-income women (50 gm). Low-income women reported a higher intake of eggs than did high-income women (22 gm and 16 grams, respectively). Eggs were reported by 29% of the low-income women, compared with 21% of the high-income women. Intakes of vegetables by low-income women were lower than those for high-income women. This was generally true for all subgroups except white potatoes, for which the mean intake by low-income women was slightly higher than that of high-income women; and dark-green vegetables, for which the mean intake by low- and high-income women was the same. (Intakes of vegetables exclude vegetables eaten as part of meat or grain mixtures.) The mean intake of fruits by lowincome women (86 gm) was lower than that of h igh-income women (140 gm). Fruits were reported by 36% of the low-income women, compared with 55% of high-income women. This pattern was true for both citrus and noncitrus fruits and juices. The proportion of low- and high-income women reporting grain products was similar. However, the mean intake of grain products by low-income women was higher than that of women in the high-income group (234 gm and 209 gm, respectively). Low-income women compared with high-income women had higher mean intakes of cereals and pasta and grain mixtures and lower mean intakes of baked goods other than yeast breads and rolls. 3 Meat mixtures--such as stews, casseroles, sandwiches (including hamburgers), and frozen dinners--are mixtures having one or more types of meat, poultry, or fish as a major ingredient. 1• fa mJ.ly Economi cs Re vi ew 1987 No.1 Low-income women compared with highincome women had lower intakes of total beverages and of the beverage subgroups for alcohol, tea, coffee, and low-calorie soft drinks; and higher intakes of fruit drinks/ ades and regular soft drinks. Women in all income groups reported higher intakes of regular compared with low-calorie soft drinks, but the difference in intakes between the two categories of soft drinks was much smaller for the high-income women. Nutrient intakes. Low-income women reported food intakes that were lower in food energy than those reported by highincome women. Women in all three income levels had mean food energy intakes that were below the midpoint of the RDA: -In-co-m-e Calories Percentage of RDA Low •••••.••• 1,598 78 Middle ••••••• 1,665 81 High ..•.... · 1,736 86 Mean intakes by women in all three income groups were above the RDA for protein, vitamin A, ascorbic acid, thiamin, riboflavin, niacin, vitamin B12 , and phosphorus; and below the RDA for vitamin B6, calcium, magnesium, iron, folacin, and zinc (table 3). Intakes of vitamin E were below the RDA for low-income women but not for middle- or high-income women. Of the six nutrients below RDA for all income groups, low-income women had lower intakes of vitamin B6, calcium, magnesium, and folacin than did high-income women. This may reflect some of the differences in food consumption mentioned earlier: Lower intakes of dairy products, fruits, and vegetables for low-income women than for high-income women. Intakes below RDA are not necessarily inadequate because the RDA, to be safe, are set above the needs of most people. However, the risk of having an inadequate intake is greater for groups of people with intakes well below the RDA (!). The mean copper intake of low-income women was 1 • 0 m g; of middle-income women, 1.1 mg; and of high -income women, 1.1 mg. All of these intakes were well below the range of intakes (2.0 mg to 3.0 mg) suggested by the Food and Nutrition Board, National Academy of Sciences (1). The CSFII provides data for several nutrients and dietary components for which no RDA are published. The mean intake of dietary fiber was lower for low-income women (10 gm) than for high-income women (13 gm), reflecting low-income women's lower intakes of vegetables and fruits, which are the largest source of dietary fiber. Low-income women had a mean cholesterol intake of 341 mg, compared with 305 mg for middleincome women, and 295 mg for high-income women. Cholesterol is provided by foods of animal origin such as eggs, beef, poultry, and milk. Grain products containing eggs and milk or milk products also include cholestrol. Women at all three income levels obtained 16% of their food energy from protein. Lowand middle-income women obtained 36% of their food energy from fat; high-income women obtained 38%. CHANGES BETWEEN 1977 and 19854 Food intakes. Within the meat, poul-try, and fish food group, survey results indicate two major shifts by women ages 19 to 50 between 1977 and 1985. First, previous food consumption surveys have shown the consumption of meat (beef; pork; frankfurters, sausages, luncheon meats; lamb, veal, game; and organ meats) is higher at successively higher income levels. In 1985, however, high-income women reported 25% less meat (in grams) than low-income women, compared with 1977 when high-income women reported 20% more meat (see figure, p. 16.). Although meat intake by all three income groups was lower in 1985 than in 1977, the decline was greatest for "Changes in data collection procedures, probing techniques, and food composition data between 1977 and 1985 may have affected increases or decreases in the intake of certain foods and nutrients. Table 3. Mean intakes by women 19 to 50 years of age, of selected nutrients below the 1980 RDA, by household income level, spring 1985 and spring 1977 Vitamin Calciun Magne- Iron Folacin Zinc Vitamin Incane level B6 sium E (percentage of liD\) 1985 Low •••••• • • • • • • • • • • • • • • • • 58 66 63 62 45 61 83 Middle ................... 62 79 71 62 52 59 102 High ...... · · · · · · · • • • • • • • • 64 84 77 61 53 61 102 All ...................... 61 78 72 61 51 60 97 1977 Low •••••• • • • • • • • • • • • • • • • • 57 67 65 55 * * * Middle ................... 58 71 70 55 * * * High .••... · • · • • • • • • • • • • • • 63 71 75 59 * * * All ...................... 60 69 71 56 * * * *Not examined in NFCS, 1977-78. Source: u.s. Department of Agriculture, Human Nutrition Information Service, .1~85, Nationwide Food Consumption Survey, Continuing Survey of Food Intakes by IndiVIduals: Women 19-50 Years and Their Children 1-5 Years, 1 Day, Report No. 85-1, 102 PP· 1987 No.1 Family Economics Review 15 Meat: Mean Intakes (grams) by Women 19-50 Years, by Income, One Day, Spring 1977 and 1985 91 Low-income Middle-Income High-income Unpubllehed d•te from CSFII-85 end HFCS 77-78, USDA, HNf8 -1977 ~1985 the high-income group (table 4). Second, the data indicate a shift by women in all three income groups away from meat reported separately (beef; pork; lamb, veal, and game; and frankfurters, sausages, and luncheon meats) toward mixtures such as stews and sandwiches . Mean intakes of meat mixtures increased by 33% for low-income women and by 38% for high-income women. Between 1977 and 1985 women in all three income groups decreased their mean intake of whole milk and increased their intake of lowfat or skim milk. Despite this shift, low-income women in 1985, as in 1977, continued to have higher intakes of whole milk than of lowfat or skim milk. Middle-income and high-income women, however, had higher intakes of lowfat or skim milk than of whole milk--a reversal of their 1977 pattern . The mean intakes of eggs by all income groups decreased. Intakes of vegetables and fruits decreased for both the low-and high-income women but increased slightly for middle-income women. Women in all income groups increased their intakes of grain products and beverages. Within the grain products group, the category with the largest gain for all income groups was grain mixtures such as pizza, spaghetti, and macaroni and cheese. Within the beverage group, carbonated soft drinks 16 Family Economics Rev iew 1987 No.1 increased for women in all three income groups. Nutrient intakes. Food energy intakes by women in all three income groups were higher in 1985 than in 1977. Nutrient intakes by women of vitamin B6, calcium, magnesium, iron, folacin, and zinc were below the RDA in 1977 for women in all three income groups and were still below the RDA in 1985 (table 4). Thiamin intakes for middle- and high -income women were slightly below the RDA in 1977 but above the RDA in 1985. Of the nutrients below RDA in both 1977 and 1985, most improved were the nutrient intakes of calcium by middle- and highincome women and iron intakes by low- and middle-income women. REFERENCES 1. Hepburn, Frank N. 1982. The USDA National Nutrient Data Bank. American Journal of Clinical Nutrition. Vol. 3 5 , No. 5 (supplement), pp. 1297-1301. 2. Posati, Linda P., and Robert L. Rizek. Nutrient Data Base for Continuing Food Intake Survey. Family Economics Review 1985(3):4-16. 3. Rizek, Robert L., and Linda P. Posati. Continuing Survey of Food Intakes by Individuals. Family Economics Review 1985(1):16-17. 4. National Academy of Sciences, National Research Council, Food and Nutrition Board. 1980. Recommended Dietary Allowances, 9th edition, 18 5 pp. National Academy Press. 5. U.S. Department of Agriculture, Agricultural Research Service. 1985. Food and nutrient intakes by women and children. Family Economics Review 1986 (2): 26-27. 6. , Human Nutrition Information Service. 1985. Nationwide Food Consumption Survey, Continuing Survey of Food Intakes by Individuals: Women 19-50 Years and Their Children 1-5 Years, 1 Day. Rpt. No. 85-1, 102 PP• 7. U.S. Department of Health and Human Services. 1985. Annual Revision of the Poverty Income Guidelines. Federal Register 46:9517. Table 4. Percentage change in mean intake by women 19 to 50 years of age, of selected foods on 1 day in spring 1977 and in spring 1985, by household income level Food group Meat, poultry, and fish •••••••••••••••••••••• Meat 1 ••••••••••••••••••••••••••••••••••••• Poultry ....... ............................ . Fish and shellfish •••••••••• , •••••••••••••• Mixtures 2 ••••••••••••••••••••••••••••••••• Milk and milk products ••••••••••••••••••••••• Whole milk ..•..•.••.......•....•.••.•.•..• Skim /lowfa t milk •..........•..........•.•.• Cheese •••••••••••••••••••••••••••••••••••• Eggs •••••••••.••••••••••••••••••••••••.•••••• Legumes, nuts, seeds ....................... . Vegetables ........ ............... · · · · · · · · · · • · · Fruits Grain products .............................. . Bread, other baked goods ••••••••••••••••• Cereals, pasta . ........................... . Mixtures 3 ••••••••••••••••••••••••••••••••• Beverages .............................. · .. • .. Coffee . ................................... . Tea ..••..... ., ...........•................. Carbonated soft drinks •••••••••••••••••••• Low 8 -16 0 18 33 -21 -42 43 -8 -29 -16 -21 -15 31 5 9 127 32 16 18 44 Incane Middle (percentage change) -3 -31 -14 40 22 -3 -40 62 -12 -14 -5 3 5 30 16 56 45 22 -2 5 52 High -8 -47 -12 20 38 6 -32 59 0 -30 12 -6 -6 28 11 14 68 25 15 -6 65 1 Beef; pork; frankfurters, sausages, luncheon meats; lamb, veal, game; and organ meats (cooked edible parts only). 2 Mixtures that are mainly meat, poultry, or fish (such as stews and sandwiches). 3 Mixtures that are mainly grain, such as pizza and pasta with sauce. Source: Unpublished data from the Continuing Survey of Food Intakes by Individuals, 1985, Human Nutrition Information Service, U.S. Department of Agriculture. 1987 No.1 Fam ily Ec onom1cs Review 17 Recent Developments in Automobile Financing Automobile purchases constitute the largest single category of expenditures financed by consumer installment credit. Changes in the terms or availability of auto credit can influence shortrun movements in auto sales and aggregate consumer spending. Auto credit demand is derived mainly from the demand for cars. The demand for cars is dependent on the transportation needs of potential buyers, car prices and financing costs, and the gap between the desired stock of cars and the actual stock owned by the public. Economic conditions have caused alternate patterns of weakening and resurgence in the growth of automobile credit in recent years. Between 1976 and 1979, car sales totaled between 10 and 11 million units each year, and auto credit expanded at annual rates of about 20 percent. Back-to-back recessions followed in the years 1980 through 1982 that decreased the demand for cars. Domestic car sales were hit particularly hard, and used car sales slumped as well. Commercial banks (which account for the largest share of auto credit) cut back on lending to consumers in the 1980-82 period, reducing their portfolio of auto loans by 12-1/2 percent. Auto credit outstanding expanded at annual rates of only 4 percent. In response to this constriction of auto credit by banks, auto manufacturers supported the credit market through their finance company subsidiaries. One incentive was to offer loans at below-market rates on certain slow-selling models. In 1982 sales of new cars hit a 20-year low of 8 million units. During the next 3 years auto sales and credit activity increased vigorously as the economy began to expand again. New car sales rebounded to 9-1 I 4 million units in 1983, and auto credit outstanding increased 16 percent. Sales reached 10-1/2 million units in 1984 and 11 million units in 1985. Several factors combined to create a favorable 1 B Family Economics Review 1987 No.1 car-buying atmosphere. The average age of the existing car stock was up. Installment debt owed by households relative to their income had dropped to a 7 -year low of 14 percent. Gasoline prices had stabilized. Auto loan rates were being pulled down due to substantial declines in market interest rates. The U.S. dollar was strong on foreign exchange markets. Finally, commercial banks had returned as aggressive competitors in the auto credit market. In the early eighties savings and loan associations entered the auto loan market. By the fall of 1985, savings and loans had moved ahead of retail stores as the fourth largest source of commercial credit, behind commercial banks, finance companies,, and credit unions. Holdings of auto paper by savings and loans grew from $1 billion in 1981 to $8-1/2 billion at the end of 1985. The supply of auto credit has further increased since the beginning of 1985 because of the following developments: 1. Lengthening of maturities. The average maturity of new-car loans rose from 46 months to 52 months during the 1984-85 period. Loan-to-value ratios also have edged higher. 2. Loans with special features. Balloon payments, for instance, reduce the size of the down payment or the monthly installments, or both, because of a large final "balloon" payment. The balloon payment can then be refinanced or paid for by the sale of the car. 3. Leasing for nonbusiness purposes • The consumer is able to obtain the use of a car with a relatively small initial outlay of cash and small monthly payments. Lease plans are available from automobile finance companies and from banks that are heavily involved in automobile finance. 4. Reduced-rate financing programs. The periodic offering of cut-rate financing by auto finance companies has lifted auto sales and credit. Low-rate financing was first offered by the large domestic automakers in 1982. The early programs provided relatively moderate rate discounts or they applied only to a narrow selection of slowselling models. By 1985 virtually all car models were covered by the programs, and the discounts were 4 to 5 percentage points below market rates. In general, the low-rate loan programs appear to affect the timing of sales more than they affect the total volume over a period of time. 5. Securities backed by auto loans. This refers to the pooling together of auto loans for sale in the secondary market in the form of a pass-through security. Until 1985 secondary marketing of nonmortgage consumer debt through the issuance of securities was virtually nonexistent. The General Motors Acceptance Corporation has beert the principal originator of securities backed by auto loans. Banks and thrift institutions have been the largest purchasers of auto-backed certificates, and pension funds and insurance companies also have invested in them. Investors are attracted to auto-backed certificates by their yield advantage over Treasury notes, their limited default risk, and their comparatively short and predictable maturity (about 2 years). Although the influence of this new secondary market instrument on the supply of auto credit to date has been small, the continued development of such securities should bolster the overall supply of auto credit in the future. It was predicted that a strong basic demand for autos and auto financing would be maintained in 1986. The median age of reached in 1985 for the existing car stock (the highest reading since World War II), a high auto scrappage rate, the recent sharp decline in gasoline prices, and a favorable economic outlook with generally lower interest rates and minimal inflationary pressures should combine to support auto demand. Source: Luckett, Charles A., 1986, Recent developments in automobile finance, Federal Reserve Bulletin, 72(6):355-365, Board of Governors of the Federal Reserve System • Measures of Compensation In 1984 approximately 100 million persons were employed as wage or salary workers in the United States. Their earnings and benefits accounted for 75% of our national income. These numbers underscore the importance of a comprehensive statistical program covering employee compensation. In response to the diverse needs of data users, the U.s. Department of Labor, Bureau of Labor Statistics (BLS), has developed nine series on compensation, as described in this abstract. These series provide information on rates of pay, earnings, compensation, labor costs, and income.1 Differences among the series are from variations in concept; worker, geographic, and industrial coverage; sampled establishment size;2 timing of data collection ; unit of measurement; collection and estimating techniques; and sample size and variability. Occupational Wage Surveys Occupational wage surveys are used to summarize the rate of pay for individual workers and develop averages and distributions of straight-time earnings for a number of jobs at a given time. Depending on the survey, data may be collected from a specific industry, labor market, or the Nation as a whole. Field representatives visit sample establishments and collect data from payroll 1 The rate of pay is the basic money return to a worker for a unit of time worked or output produced, plus various employee benefits. Earnings are employer payroll outlays to a worker. Compensation is earnings plus employer payments on behalf of a worker to public and private pension, health, and welfare funds. Income is total receipts of individuals and includes payments from a variety of sources but is not limited to payments for work. 2 An establishment refers to a single physical location in manufacturing industries and to all outlets of a company within an area or county in nonmanufacturing industries. 1987 No.1 Fam i ly Econom i cs Review 19 records, company booklets, and labormanagement agreements. Occupational wage surveys are used for a variety of purposes, such as wage and salary administration, plant location studies, collective bargaining, cost evaluations, and Federal wage-policy formulation. Data are useful in studies of both levels of pay and variations in pay according to occupation, industry, and geographic area. Data are collected in industrial wage surveys from selected occupations that represent a range of activities performed by workers during a specified payroll month. These surveys provide information on straight-time, first-shift wage rates; pay distributions for broad employee groups (such as all production or all nonsupervisory workers); weekly work schedules; shift operations and pay differentials; employee benefits; cost-of-living adjustments; estimates of workers covered by labor management agreements; and proportions of workers employed under incentive pay plans. Area wage surveys provide employment and wage data for office clerical, professional, technical, maintenance, toolroom, powerplant, materiaJ movement, and custodial occupations that are common to a variety of industries. Surveys are limited to selected metropolitan areas, which when properly weighted, yield employment and wage estimates at the national and regional levels. The National Survey of Professional, Administrative, Technical, and Clerical Pay (PATC) provides information on white-collar salary levels and distributions in medium and large firms of private industry. In 1985 approximately 100 occupations were studied in accounting, legal services, personnel management, engineering, chemistry, purchasing, -photography, crafting, computer science, and clerical fields. Data from the PATC are used as a principal element in setting the pay for Federal white-collar employees. 20 Family Economics Review 1987 No.1 Average Hourly and Weekly Earnings: Establishment Data The Current Employment Statistics Survey collects employment, hours, and earnings data monthly from a nationwide sample of nonagricultural establishments in cooperation with State employment security agencies. These agencies mail surveys to a sample of business establishments each month, develop estimates from the returned surveys, and forward the data to BLS. Earnings data are used by private and public organizations in monitoring the economic well-being of Americans dependent on salaries and wages, and as input in other time-series and economic models used for analyzing and projecting trends in the economy. Hourly earnings data are commonly used by both labor and management in contract negotiations, since the series not only furnishes current and historical information on a given industry but provides comparative data on related industries. Earnings Statistics From the Current Population Survey The Current Population Survey (CPS) produces data on the labor force, employment, unemployment, and persons not in the labor force; data are classified by demographic, social, and economic characteristics. The CPS is conducted for BLS by the U.S. Bureau of the Census. Census sends questionnaires to about 59,500 households throughout the country. Hourly and weekly earnings of wage and salary workers and their families are published on a quarterly basis. Also, annual earnings and some total income data are published in conjunction with data on the economic status of families and employment problems of workers. Because it is a household survey, the CPS is able to provide substantial detail on the demographic, social, and economic characteristics of workers and their families. Wages of Workers Covered by Unemployment Insurance Programs The Employment and Wages Program (ES-202) is carried out in cooperation with State employment security agencies. Unemployment insurance tax reports, required from employers for the administration of unemployment insurance laws, are collected and summarized quarterly by these State agencies. The summaries are aggregated by BLS to provide national data on employment and wages. The ES-202 is a comprehensive source of employment and wage data by industry at the national, State, and county levels for agricultural and nonagricultural employees. Included among the data collected are total wages, taxable wages, unemployment insurance contributions, and employment characteristics. Average annual and weekly wages also are derived from the series. Data are used to measure unemployment insurance revenues and disbursements; national, State, and local area employment; and total taxable wage trends. ES-202 data also are used in actuarial studies of the unemployment insurance system; for determining employer tax rates, maximum unemployment insurance benefit levels, and areas needing Federal unemployment insurance assistance; and to evaluate the solvency of State unemployment insurance trust funds. Income and Earnings Data From the Consumer Expenditure Survey The Consumer Expenditure Survey (CES) collects data related to consumer expenditures for goods and services, amounts and sources of family income, changes in assets and liabilities, and demographic and socioeconomic characteristics of consumers. Conducted by Census, the CES is a continuous household survey and the only nationwide survey that links the levels of consumer income to patterns of consumer expenditures and savings. The data allow users to classify expenditures by income or other demographic and socioeconomic characteristics; economists and market researchers can analyze consumer demand for groups of goods and services. Data are useful to private and public agencies studying the welfare of certain segments of the population, such as the elderly, low-income consumers, or food stamp recipients. The Internal Revenue Service has used the data as the basis for revising the average State sales tax tables, which taxpayers may use in preparing Federal income tax returns. The Employment Cost Index The Employment Cost Index (ECI) is a comprehensive measure of change in employers' costs for employee compensation and includes costs for employee benefits, as well as wages and salaries. Each quarter the ECI measures changes in the price (wage plus benefit costs) of a standardized mix of purchased labor services. BLS economists visit sample establishments to obtain the initial information. Additional data are collected through forms mailed to each establishment. The ECI measures changes in the price of labor defined as the rate of compensation per employee hour worked. This emphasis on the rate, rather than on average hourly earnings, distinguishes the ECI from other series. Data are collected on 23 separate benefits including paid leave (such as vacations and sick leave), supplemental pay (such as pay for overtime), insurance benefits, retirement and savings benefits, legally required benefits (such as Social Security), and other benefits (such as severance pay) • The ECI is used in analyzing the inflationary process and the changing structure of wage and compensation. Because the ECI provides data for subgroups (such as by industry, occupation, or region), it can be used to identify the sources of pressure for wage and compensation change. Hourly Compensation Measures of the Office of Productivity and Technology The Bureau of Labor Statistics, Office of Productivity and Technology (OPT), produces measures of real and nominal compensation per hour as part of its productivity and cost measurement program. Compensation measures are in index form and are designed to emphasize changes in labor cost over time. To compute these measures, OPT uses a compensation measure, a measure of hours, and the Consumer Price Index of All Urban Consumers ( CPI-U). Compensation includes employer expenditures for employee wages and salaries, social insurance, and private benefits, plus estimates of these components for the self-employed. Hours are calculated separately for wage and salary workers, the self-employed, and unpaid family workers, then summed to the all-person level. Compensation per hour equals estimated 1987 No.1 Fam i ly Econom i cs Re view 21 compensation divided by these hours. Real hourly compensation is compensation per hour divided by the CPI-U. The OPT measures of hourly compensation combine BLS hours data with compensation information obtained primarily from the Bureau of Economic Analysis, U.S. Department of Commerce. These series are useful in forecasting and analyzing prices, wages, profits, and production costs. Because hourly compensation measures are presented in index form, however, their use is limited to the analysis of changes over time. Measuring Negotiated Wage and Benefit Changes The current wage development program provides information on pay changes resulting from collective bargaining. It measures compensation and the size of negotiated wage adjustments in major collective bargaining situations. Data are obtained directly from establishments as part of a variety of BLS surveys and are presented separately for three occupational groups: Professionaladministrative, technical-clerical, and production workers. Monthly listings are produced that describe negotiated changes and statistical summaries of aggregate changes. Data from private industry and State and local governments include adjustments stemming from contract settlements, deferred changes, and changes resulting from cost-of-living adjustments. The series on wage and compensation adjustments from collective bargaining is one of the Federal Government's principal economic indicators and is used in determining trends in compensation and in forecasting changes in wage and salary income and in the gross national product. The Employee Benefits Survey The Employee Benefits Survey (EBS) provides comprehensive data on the percent of employees covered by major employee benefits and on the detailed provisions of benefit plans. The annual survey is conducted by BLS field representatives who visit each sample establishment and obtain documents containing the data required. Information is developed on 11 private sector employee benefits paid for at least in part by the 22 Fam ily Econom i cs Review 1987 No.1 employer, including: Paid lunch and rest periods; holidays and vacations; personal and sick leave; long-term disability, health, and life insurance; and private pension plans. The EBS is a major source of information for labor and management involved in contract negotiations. Employers use the EBS data to compare their benefit plans with prevailing practices. Labor unions assess potential areas for increasing nonwage compensation. Social welfare planners evaluate the ability of employees to provide for the current and future health and welfare needs of themselves and their dependents. Selection of Series To determine which statistical series would be most appropriate, data users should consider the following: The concept measured (rate of pay, earnings, compensation, labor costs, or income). The portion of the economy covered by the data. The amount of detail available in terms of industry, area, and type of worker. The time period covered. The definitions given to the items studied (for example, a survey of employee earnings may cover only regular payroll outlays, and exclude bonuses). Users also should be familiar with the methods of compiling the series. Some earnings series come from surveys of establishments that provide data on employment, earnings, and hours; others come from household responses. The table on page 23 summarizes and classifies each series in accordance with its emphasis on industry and worker coverage, frequency of publication, types of compensation included, and data sources. Source: U.S. Department of Labor, Bureau of Labor Statistics, BLS Measures of Compensation, Bulletin 2239, 1986. '-D (X) ...... z 0 ..., Ill 3 ..... ...... '< ,.., n 0 ::J 0 3 ..... n r.o :;c "<...'. . "' :1: N "' BLS measures of compensation--Summary of statistical series Series Occupational wage surveys Average hourly and weekly earnings-establishment data Earnings statistics from the Current Population Survey Wages of workers covered by unemployment (UI) programs Income and earnings data from the Consumer Expenditure Survey Employment Cost Index Hourly compensation measures of the Office of Productivity Technology Negotiated wage and benefit changes Employee Benefits Survey 1 Not applicable. Coot>ensa t ion Wages and salaries. Wages and salaries. Primarily wages and salaries; also total money income . Wages, salaries, and other payments covered by UI taxes. Wages, salaries, and other sources of income . Wages, salaries, and employer costs for employee benefits. Wages, salaries, and supplements plus estimate of labor compensation of self-employed • Wages, salaries, and private benefits. Selected employee benefits. Coverage Worker Primarily nonsupervisory employees in selected occupations. Production and nonsupervisory workers. Wage and salary workers, all employed workers. All workers covered by Federal and State UI Jaws. Urban civilian nonins titu tiona! population. All employees. All employees plus the self-employed. Production and nonsupervisory workers in bargaining units of 1, 000 workers or more (5 ,000 or more for wages and benefits combined) • Full-time employees. Industry Geographic Varies by survey. Varies by survey-nationwide, selected regions and areas. Private nonfarm Nationwide. economy, excluding households. All industries. Nationwide. All industries. Nationwide, Statewide, county level, and area. (1) All urban areas. Private nonfarm economy, excluding households, and State and local governments • U.S. business sector. Private nonfarm economy; State and local governments. Medium and large private nonfarm establishments. Nationwide. Nationwide. Nation wide. Nationwide. Source: U.S. Department of Labor, Bureau of Labor Statistics, 1986, News, USDL-86-211. ~ere pub! ished BLS bulletins, news releases, locality releases. Employment and Earnings, news releases. Employment and Earnings, Monthly Labor Review, news release. Employment and Wages, news releases. BLS bulletins, news releases. Current Wage Developments, news releases. Employment and Earnings, news releases. Current Wage Developments, news releases. BLS bulletin, Monthly Labor Review, news releases • Data reported Hourly, weekly, monthly, or annual straight-time earnings, by occupation, usually with incidence of benefits. Hourly and weekly earnings, with industry and geographic detail. Hourly rates, weekly and annual earnings, money income; demographic detail. Weekly and annual earnings per employee, aggregate annual payrolls; industry and area detail. Annual income, by source. Indexes and quarterly and annual changes in wages and salaries and total compensation costs. Indexes and quarterly and annual changes in hourly compensation. Terms of individual settlements; average pay rate changes in cents per hour and percent. Incidence of benefit plans and plan provisions, by broad occupational group. Using Consumer Expenditure Survey Data1 One of the important uses of data from the Consumer Expenditure Survey (CES) is to provide information about the spending habits of different kinds of American households. Expenditures are categorized by household characteristics, including consumer unit size, age of reference person, region of residence, number of earners, and income quintile. 2 Several discriminating methods of measurement may be used to compare or contrast spending by different types of households. Average expenditure levels. Levels of expenditures refer to the average amounts spent by each class of consumer units. The levels can be compared to determine differences by household characteristics. For example, units in the highest income quintile averaged $91.16 a week for food, whereas those in the lowest income quintile averaged $28.08. Consumer units with reference persons 25 to 34 years of age spent an average of $54.22 per week on food, compared with $37.80 spent by units with reference persons 65 years and over. One-person units with one earner averaged $31.39 per week for food expenditures; one-person units with no earner averaged $22.51. Consumer units in the South averaged $52.24 per week for food, whereas units in the Northeast averaged $58.48. 1 Findings from the continuing Consumer Expenditure Survey, Interview and Diary Surveys, 1982-83. For additional information on this survey and its two component parts, see "Spending Patterns of U.S. Households," p. 26 of t.his issue. 2The basic reporting unit of the CES is the consumer unit, which refers to a single person or group of persons in a sample household related by blood, marriage, adoption, or other legal arrangement, or who share responsibility for at least two of three major types of expenses--food, housing, and other expenses. The consumer unit may also be referred to as a household. The reference person is the first person named by the survey respondent as owning or renting the home. z• family Economics Review 1987 No.1 Budget shares. Budget shares are the portion of total expenditures spent on one component (for example, food) or the portion of one average component expenditure spent on one subcomponent (for example, the portion of average food expenditures spent on food away from home). Single-person units with a wage earner spent 58% of food expenditures on food away from home, compared with 30% by two-or-more-person units with one earner. Aggregate expenditure shares. The aggregate amount spent by one class of consumer units for one component can be compared to the aggregate amount spent by another class, or by all consumer units, to determine if those units are consuming a disproportionate share of that expenditure item. Aggregate expenditures for one component are calculated by multiplying the mean expenditure for that component by the total number of consumer units. The aggregate expenditure share for one class of consumer units is determined by first multiplying the class' mean expenditure by the number of consumer units in the class, then dividing that number by the aggregate expenditure for all units for that component. The aggregate expenditure share for one class of consumer units differs from the budget share of that class of consumer units. Even if the class' component budget share is large, the class' aggregate expenditure share can still be relatively small (1) if the class size is small and/or (2) if the class' mean expenditure for the component is relatively low compared with that of other classes. For example, units with reference persons under 25 years of age spent 23% of their average total expenditures on transportation, compared with 20% spent by all consumer units (budget shares). Yet, the aggregate expenditure share for units with reference persons under age 25 was only about 7%, even though these units comprise 10% of the total number of units; the dollar value of their mean expenditure is low relative to those of most other classes. Per capita expenditures. Per capita expenditures are frequently used because consumer unit size may contribute to differences in expenditures among classes. Mean expenditure levels per consumer unit usually increase with age up to the middle-age classes and decrease thereafter. Per capita expendi-tures, however, reveal a different pattern; per capita housing expenditures are highest for units with reference persons age 65 or over and lowest for units with reference persons under 25 years of age ($2,425, compared with $1,894). Consumer units with reference persons ages 45 to 54 have the highest average expenditures for nonprescription drugs and supplies, but per capita expenditures are highest for units with reference persons age 65 or over. Changes over time. CES data are used to record changes in U.S. consumer expenditure patterns over time. For example, average weekly expenditures for food increased 70% between 1972-73 and 1982-83, considerably below the 104% price rise for food as measured by the CPI. Although changes in ex penditures and the CPI for food away from home were similar (113% increase in expenditures compared with 120% rise in prices), there was a sharp difference in t he changes for food at home (53%, compared with 99%). Variations in expenditure patterns over time can be attributed to other factors , such as fluctuations in wage rates ; changes in tastes, habits, and lifestyles; and the availability of new products. Demographic trends, such as changes in average family size, age, and earner composition, may also affect expenditures. The continuing CES allows data users to note trends more quickly than was possible in the past and to observe trends that might have been missed using data that were less frequently available. Source: Gieseman, Raymond, and John Rogers, 1986, Consumer Expenditures: Results from the Diary and Interview Surveys, Monthly Labor Review 109(~) :1 4-18, U.S. Department of Labor, Bureau of Labor Statistics. Subscrtption Order Or Change 01 Address Form FAMILY Annual subscrtption Single copies Enclosed IsS·------- 0 Check 0 Money order 0 Charge to my Deposit Account No _______ ___ Order No ______ _ Make check payable to Superintendent ol Documents CREDIT CARD ORDERS ONLY (Visa and Mastercard) Total charges S Credit card No Expiration Date Month/Year ECONOMICS $12.00 domestic $3.25 domestic REVIEW ($15.00 foreign) ($4.10 foreign). Please print or type Company or Personal Name I I I I I I I I I I I I I Additional Address I Attention Une I I I I I I I I I I I I Street Address I I I City I I I Country I I I I CHANGE OF ADDRESS Please attach mailing label here and send this torm when requesting a change ol address. MAIL ORDER FORM TO, Superintendent ol Documents GoTemment Printing Otttce Wash1Dgton. D.C. 20402 Slate ZIP Code LUI I II I I I FOR OFFICE USE ONLY Quantity ___ Publications Charges --~ Subscriptions ___ _ Special Shipping Charges __ _ International Handling ___ _ Special Charges-----OPNR ____ UPNS ____ Balance Due ____ Discount ____ Refund 1987 No . 1 Family Economics Review 25 Spending Patterns of U.S. Households1 The U.S. Bureau of Labor Statistics (BLS) reports that American households spent less for gasoline in 1984 than in 1983--the first annual decrease in a major expenditure category since 1980. Expenditures for other major components of transportation, however, substantially increased. Vehicle purchases accounted for two-thirds of the increase in transportation expenditures. Not only did more people buy cars, but the cost of cars and trucks increased. Also, vehicle financing costs (associated with increased vehicle expenditures) rose by 25%. Although substantial fluctuations in dollar amounts spent on components occur from year to year, the proportion of money allocated to each component has been relatively constant over time. Other findings of the survey show that: Increases in expenditures surpassed increases in prices, as measured by the Consumer Price Index ( CPI), for most components in 1984 . For example, expenditures for nonprescription drugs rose 10% from 1983, whereas prices rose a little over 5% • Prices exceeded expenditures, however, for education and tobacco. Both expenditures and prices declined at a rate of 1 .5% for gasoline and motor oil (table 1). • From 1983 to 1984 expenditures for retirement, pensions , and Social Security increased 14% (table 1) because of the general upswing in income and legislated increases in maximum earnings to which Social Security tax is applied • • Homeowners and renters spent about the same percent of total expenditures for housing; however, renters spent a higher share of their housing expenditures for shelter than did homeowners (21% and 16%, respectively) . The latter spent a greater proportion for utilities , household operations, and equipment . 1 Findings from the continuing Consumer Expenditure Survey: Interview and Diary Surveys, 1984, U. S . Department of Labor, Bureau of Labor Statistics . 26 Family Economics Review 1987 No.1 • There was a moderate rise in food expenditures. Consumer units with reference persons 2 under 25 years of age spent more of their food budgets on food away from home than units with older reference persons (table 2). The Survey The current Consumer Expenditure Survey ( CES) was begun in 1979. The main objective for the survey is to gather consumer expenditure data that provide a continuous source of information on the buying habits of consumers. The data are used for the periodic revisions of the CPI and for research conducted by a variety of government, business, labor, and academic analysts. In the past the survey was conducted about every 10 years; the new survey is ongoing, with rotating panels of respondents participating over time. The continuous flow of data significantly adds to the usefulness of the survey by providing more timely and detailed information on household consumption patterns. A new feature of the detailed tables is the division of the 65-and-over age class into the 65-to-74 and 75-and-over age groups. The CES survey consists of two components: (1) A diary, or record keeping, survey completed by participating consumer units for two consecutive 1-week periods; and (2) an interview survey in which the expenditures of consumer units are recorded in five interviews, each conducted every 3 months. Each component is used with an independent sample that is representative of the U.S. urban population. In the diary survey, 5, 000 consumer units are interviewed over 52 weeks. The interview sample, composed of rotating panels, consists of 5, 000 consumer units each quarter. In the interview survey respondents report expenditures that have accrued over a period of 3 months or longer. In general, these are relatively large expenditures (such as those for real property, automobiles, and major appliances) or expenditures that occur fairly regularly (such as rent, utilities, and insurance premiums). Estimates of food 2 See footnotes 1 and 2 in table 1. Table 1. Annual expenditures of urban consumer units and percent change in consumer expenditures ( CE) and Consumer Price Index ( CPI-U) 1 Item Number of consumer units in universe (thousands) ••••••••••.••••••••••••••••••••••••• Income before taxes ............................ . Size of consumer unit ••••••••••••••.••••••••.••• Age of reference person (years) 2 •••••••••••••••• Number in consumer unit: Earners ••••••••••••••••••••••••••••••••••••••• Vehicles •••••••••••••••••••••.••••• • •••••••••• Children under 18 years ••••••••••••• • ••••••••• Persons 65 years and over •••••••••••••••••••• Total expenditures •••••••••••••••••••••••••••••• Food •••••••••••••••••••••••••.••••••.••••••••• Food at home •••••••••••••••••••••••••••••••• Food away from home •••••••••.•••••••••••••• Alcoholic beverages ••••••••••••••••• ••••• ••••• Housing •••••••••••••••••••••••••••••••••••• ••• Shelter ••••••••••••••.•••••••••••••••••••••• • Owned dwellings •••••••••••••••••••••••••••• Rented dwellings ••••••••••••••••••••••••••• Other lodging •••••••••••••••••••••••••••••• Utilities, fuel, and public services •••••••••• Household operations •••••••••••••••••• • •••••• Housefurnishings and equipment •••••••••••••• Apparel and services •••••••• ••• .••••••••••••••• Transportation ••••••••••••••••••••••••••••••••• Vehicles ••••••••••••••••••••••••••••••• • • • • • • Gasoline and motor oil ••••••••••••••••••••.•• Other vehicle expenses ••••••••••••••••••.•••• Public transportation ••••••••••••••••••••••••• Health care •••••••••••••••••••••• •• •••••••• • • • • Entertainment ••••••••••••••••••••••••••••• • • • • • Personal care services •••••••••••••••••••••••••• Reading •••••••••••••••••••••••• ••••••••••• • • • • • Education •••••••••••••••••••• • • • • • • • • • • • • • • • • • • Tobacco and smoking supplies •••••••••• •••• •••• Miscellaneous •••••••• ••• •••••••••••••• • • • • • • • • • • Cash contributions •.•••••••••••••••• • • • • • • · • • • • Personal insurance and pensions ••••••••••••• ••• Life and other personal insurance •••••• •• •.•• Retirement, pensions, Social Security ••••••••• 1983 72,531 $23,126 2.6 46.1 1.3 1.8 .7 .3 $19,692 3,198 2,224 974 286 5,980 3,349 1,958 1,063 327 1,540 284 808 1,084 3,914 1,565 1,064 1,047 239 839 919 184 131 293 215 283 588 1,777 265 1,513 1984 74,844 $24,578 2.6 46.2 1.4 1.9 .7 .3 $21,788 3,391 2,342 1,048 299 6,626 3,747 2,188 1,171 388 1,679 333 868 1,192 4,385 1,873 1,048 1,176 288 899 1,040 205 140 312 225 311 740 2,023 302 1,721 Percent change CE CPI-U 6.3 10.6 ( 3 ) 6.0 3.8 5.3 3.7 7.6 4.2 4.5 2.6 10.8 ( 3 ) 11.9 ( 3) 11.7 ( 3) 10.2 5.2 18.7 4 7 .9 9.0 4 4.6 17.3 4 2.7 7.4 .8 10.0 1.9 12.0 4.5 19.7 4 8.9 -1.5 -1.5 12.3 4 4.4 20.5 6.2 7.2 6.2 13.2 3.7 11.4 3.9 6.9 4 3.3 6.5 9.7 4.7 6.5 9.9 25.9 13.8 14.0 13.7 1 Data from the Consumer Expenditure Survey (CES), interview component, 1983 and 1984. The basic reporting unit for the CES is the consumer unit that refers to a single person or group of persons in a sample household related by blood, marriage, adoption, or other legal arrangement, or who share responsibility for at least 2 of 3 major types of expenses--food, housing, and other expenses. The term household is used for convenience. 2 The reference person or householder is the first person named by the respondent as owning or renting the home. 3 CPI for all items and home ownership are not conceptually comparable. 4 These figures were calculated for use in this report. Source: U.S. Department of Labor, Bureau of Labor Statistics, 1986, Consumer Expenditure Survey results from 1984, News USDL 86-258. 1987 No.1 Family Economics Rev1ew 27 Table 2. Weekly expenditures of urban consumer units classified by age of reference person1 All Age of reference person Item consumer units Under 25-34 35-44 45-54 55-64 65-74 75 and 25 over Number of consumer units (thousands) •••••••••••••••••••••••••• 74,283 8,132 17.514 13,261 10,460 10.635 7,249 6,050 Number of sample diaries •••••••••••••• 10,589 1,076 2,457 1,975 1,480 1,595 1,047 818 Average weekly expenditures: Food, total •••••••••••••••••••••••••• $57.71 $32.27 $55.29 $75.06 $79.03 $61.20 $47.80 $31.84 Food at home (percent weekly food expenditures) ••••••••••••••• 64.3 57.4 61.3 64.0 63.8 66.6 67 .5 74.3 Food away from home (percent) •••• 35.7 42.6 38.7 36.0 36.2 33.4 32.5 25.7 Alcoholic beverages •••••••••••••••••• $5.33 $4.49 $6.19 $5.70 $7.37 $5.94 $3.05 $1.41 Tobacco products and smoking supplies •••••••••••••••••••••••••••• 3.41 2.05 3.15 4.00 4.79 4.42 2.54 1.57 Personal care products and services. 4.65 2.19 4.28 5.34 5.98 5 .so 4.78 3.21 Nonprescription drugs and supplies •• 1.87 .75 1.23 1.90 1.86 2.02 3.28 3.21 Housekeeping supplies ••••••••••••••• 5.78 2.46 5.10 7.38 7.88 6.58 5.86 3.37 1 Data from the Consumer Expenditure Survey ( CES), diary component, 1984. The basic reporting unit for the CES is the consumer unit that refers to a single person or group of persons in a sample household related by blood, marriage, adoption, or other legal arrangement, or who share responsibility for at least 2 of 3 major types of expenses--food, housing, and other expenses. The term household is used for convenience. The reference person or householder is the first person named by the respondent as owning or renting the home. Source: U.S. Department of Labor, Bureau of Labor Statistics, 1986, Consumer Expenditure Survey results from 1984, News USDL:86-258. spending are included. Expenses incurred while on trips are reported exclusively in the interview component. An estimated 95% of expenditures are included in the interview survey. The diary survey is used to obtain expenditures on small, frequently purchased items, which are normally difficult for respondents to recall; for example, detailed records of expenses are kept for food and beverages, both at home and in eating places. Expenses incurred while away from home overnight or longer are not included in the diary survey and particularly affect reported food costs. Housekeeping supplies, nonprescription drugs, and personal care products are exclusively reported in the diary survey . Personal care services are included in both components of the CES. Source: U.S. Department of Labor, Bureau of Labor Statistics, 1986, Consumer Expenditure Survey Results from 1984, News USDL: 86-258. 28 Fam i ly Economics Review 1987 No.1 PUBLICATIONS FROM BLS ON 1984 CONSUMER EXPENDITURE SURVEY Results from the 1984 CES are found in the following reports by the U.S. Bureau of Labor Statistics: Consumer Expenditure Survey: Interview, 1984, Bulletin No. 2267, contains detailed information from the 1984 CES Interview Survey (urban population). The report is available from the U.S. Government Printing Office for $4.50. Send requests to the Superintendent of Doouments, Government Printing Office, Washington, DC 20402. Ask for GPO SN029-001-02905-5 and make checks payable to Superintendent of Documents. • News USDL 86-258, "Consumer Expenditure Survey Results from 1984" (urban population). News USDL 86-451, "Consumer Expenditure Survey, 1984 Results for Both Urban and Rural Populations." For inquiries about the CES or free copies of News reports, write to the Office of Prices, Bureau of Labor Statistics, U.S. Department of Labor, Washington, DC 20212. New Publications The Revised Consumer Price Index: Changes in Definitions and Availability Monthly Labor Review 109(7): 15-23 Bureau of Labor Statistics U.S. Department of Labor The second of a series of articles on the upcoming revisions in the Consumer Price Index ( CP I) has been published by the U.S. Bureau of Labor Statistics in the Monthly Labor Review. The series provides detailed information about the revised CPI, which will be introduced in January 1987. This article highlights changes that will occur in the availability and in the definitions of indexes. For additional information on updating the CPI, see "Revision of the Consumer Price Index," Family Economics Review 1986(1): 22-23. State and Metropolitan Area Data Book, 1986 Bureau of the Census U.S. Department of Commerce The Census Bureau has updated the State and Metropolitan Data Book (SMADB) for the first time since 1982. Included are data from the 1982 Economic Censuses as well as from the 1980 Census of Population and Housing. This publication, the third edition, provides extensive geographic comparative data for States, metropolitan statistical areas, and central cities. In addition, many intercensal demographic and economic data are included from more than 25 Federal agencies and many non-Federal sources. SMADB is available for $28 from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Ask for SN003-024-06334-4. How to Get Information From the United States Department of Agriculture Office of Information U.S. Department of Agriculture A recent revision of this bulletin lists individuals who serve as information sources for their respective program agencies or staff offices, as well as names of agency Freedom of Information Act contacts. For the first time the bulletin, which has been published for the past 10 years, is available electronically as a menu item in USDA ON-LINE on the Dialcom computer system and can be updated whenever changes occur. Copies of this publication and information on USDA ON-LINE can be obtained by calling (202) 447-7454 or writing to Nancy Bevis, USDA-OGPA, Room 536A, Administration Building, 14th Street and Independence Avenue, SW ., Washington, DC 20250. * • * * * * * The following are for sale from the Superin tend en t of Documents, U.S. Government Printing Office, Washington, DC 20402, (202) 783-3238: Composition of Food: Beef Products-- Raw, Processed, Prepared. AH 8-13. November 1986. SNOOl-000-04482-6. $19 .00. 1986 Agricultural Chartbook. AH 663. November 1986. SNOOl-019-00488-6. $5.50. Disaggregated Farm Income by Type of Farm, 1959-82. AER-558. August 1986. SNOOl-019-00469-0. $5.50. What Attracts New Residents to Nonmetro Areas? RDRR-56. April 1986. SNOOl-019- 00430-4. $1.00. Black Farmers and Their Farms. RDRR-59. July 1986. SNOOl-019-00449-5. $1.75. Social and Economic Environment of Black Farmers. RDRR-61. August 1986. SNOOl-019-00463-1. $1.25. A single copy of the following is available free from the U.S. Department of Agriculture, Higher Education Programs, Room 350A, Administration Building, Washington, DC 20250: Employment Opportunities for College Graduates in the Food. and Agricultural Sciences. July 1986. 1987 No.1 family Economics Review 29 Money Income of Households, Families, and Persons in 1984 Increased employment and higher real earnings levels were important factors that helped boost real median family income between 1983 and 1984. Median family income increased faster than inflation for the second year in a row, according to the results of the March 1985 Current Population Survey, conducted by the Census Bureau. In 1984, median family income was $26,430, 7.1% higher than the 1983 median of $24,670. After adjusting for the 4. 3% increase in consumer prices between 1983 and 1984, real median family income still showed a significant gain of 2.8%, compared to an increase of only 1.6% in 1983. Median household m• come 1 rose 2.3 percent from 1983 to 1984 after adjusting for inflation. Between 1983 and 1984 median income of white families increased by 2.8% and the median income of black families increased by 1. 7% (table). Families in the West, Midwest, and South also experienced real income increases. Married couples, regardless of the employment status of the wife, had significant increases in their income. Families maintained by a college graduate experienced a 1.8% increase in median income between 1983 and 1984 (table). In contrast, the median income of families with a householder completing 4 years of high school rose 3.3%. 1 Household income includes the income of all related and unrelated persons in the household, as well as the income of oneperson households. Family income is limited to the income of related persons in a household. JO family Economics Review 1987 No.1 As stated in this report from the U.S. Bureau of the Census, estimates were developed from two sample frames-one from the 1980 census and the other from the 1970 census. Since this sample design did not permit the development of estimates for area of residence that were comparable to either the 1980 or 197 0 census definitions, figures for those estimates were omitted. According to the Census Bureau, publication of data by residence categories will resume when estimates can be derived using the full sample from the 1980-based survey design. Also, revised weighting procedures for persons of Spanish origin increased the Spanish population estimate by approximately 1.6 million. The number of men and women with earnings rose substantially during 1984 as the number of employed Americans continued an expansion that began in 1983. The number of men with earnings rose to 66.5 million, up 1.5 million over 1983, and the number of women with earnings rose by 2 .1 million to 55· 2 million. Men had median earnings in 1984 of $23,220, compared with median earnings for women of $14,780. The earnings level for women was 64% of the level for men, about the same as 1983. Source: U.S. Department of Commerce, Bureau of the Census, 1986, Money income of households, families, and persons in the United States: 1984, Current Population Reports, Consumer Income Series P-60, No. 151. Comparison of median family income in 1983 and 1984 [In 1984 constant dollars] Characteristic 1984 Total ................................•.... $26,433 Race of householder: White •. · ••...•.......••.•.•..•......•.. Black ................ · • • · • · · · · • · · • · · · · Spanish origin1 •••••••••••••• ; ••••••••• Region: Northeast Mid west .............................. . south ................................ . West •••••••••••••••••••••••••••••••• • • Education of householder: Elementary school ••••••••••••••••••••• High school, 4 years •••••••••••••••••• College, 4 years or more •••••••••••••• Number of earners: None ............... · · · · · · · · · · · · • • · · · · · 1 •...•..•.........•.•...•..•.••....... 2 •••••••.•••.•.•...•••.••••••••••••••. 3 ..................................... 4 or more •......................•..... Type of family: Married-couple ....................... . Wife in paid labor force ••••••••••••• Wife not in paid labor force ••••••••• Male householder, no wife present ••••• Female householder, no husband present ............................. . 1 Persons of Spanish origin may be of any race. 2 Less than .05. * Significant at the 95% confidence level. 27,686 15,432 18,833 28,487 26,753 24,094 28,077 14,937 26,528 43,169 11 '377 20,291 31,707 39,828 50,278 29,612 34,668 23,582 23,325 12,803 1983 $25,724 26,937 15,181 17,652 f-7 ,853 25,900 23,543 26,764 14,728 25 '67 4 42,400 10,974 20,284 31,101 38,914 49,824 28,543 33,518 22,991 22,858 12,339 Percent change (1983-84) *2.8 *2.8 1.7 6.7 2.3 *3.3 *2.3 *4.9 1.4 *3.3 *1.8 *3.7 (2) *1.9 *2.3 0.9 *3.7 *3.4 *2.6 2.0 3.8 Source: U.S. Department of Commerce, Bureau of the Census, 1986, Money income of households, families, and persons in the United States: 1984, Current Population Reports, Consumer Income Series P-60, No. 151. 1987 No.1 Family Economics Re v iew J1 "" N ..., Ill 3... . ...... '< 1"\ 0 0 ::l 0 .3.. . 0 CD ;:c !D .<.. . !D s; _, '-D 0) ..... z 0 Cost of food at home estimated for food plans at 4 cost levels, November 1986, U.S. average1 Cost for 1 week Cost for 1 month Sex- age gr oup Thrifty Low-cost M:xierate- Liberal Thrifty Low-cost M:xierate- Liberal plan plan cost plan plan plan plan cost plan plan FAMILIES Family of 2 : 2 20 - 50 years •••••••••••••••••••••••• $38.60 $48.70 $60.30 $74.60 $167.10 $211.00 $261.00 $323.10 51 years and over •••••••••••••••••• 36.50 46.70 57.60 69.00 158.20 202.30 249.70 298.80 Family of 4: Couple , 20-50 years and children-- 1- 2 and 3-5 years •••••••••••••••• 56.10 69.90 85.70 104.80 242.90 303.00 371.00 454.10 6- 8 and 9-11 years ••••••••••••••• 64.40 82.30 103.10 123.90 278.50 356.30 446.50 536.70 INDIVIDUALS 3 Child: 1-2 years .......................... 10.10 12.20 14.30 17.10 43.70 52.90 61.80 74.10 3-5 years •••••••••••••••••••••••••• 10.90 13.40 16.60 19.90 47.30 58.30 71.90 86.30 6-8 years .......................... 13.40 17.80 22.30 26.00 57.90 77.00 96.50 112.60 9-11 years ••••••••••••••••••••••••• 15.90 20.20 26.00 30.10 68.70 87.50 112.70 130.40 Male: 12-14 years ........................ 16.60 22.90 28.60 33.60 72.00 99.40 124.00 145.70 15-19 years ........................ 17.30 23.80 29.50 34.20 74.80 103.10 127.70 148.10 20-50 years •••••••••••••••••••••••• 18.50 23.50 29.60 35.60 80.00 101.80 128.20 154.40 51 years and over •••••••••••••••••• 16.80 22.40 27.60 33.00 72.60 97.00 119 .40 143.10 Female: 12-19 years •••••••••••••••••••••••• 16.50 19.90 24.10 29.10 71.40 86.10 104.40 126.10 20-50 years •••••••••••••••••••••••• 16.60 20.80 25.20 32.20 71.90 90.00 109 .10 139.30 51 years and over ••••••••••••••••• 16.40 20.10 24.80 29.70 71.20 86.90 107.60 128.50 1Assumes that food for all meals and snacks is purchased at the store and prepared at home. Estimates for the thrifty food plan were computed from quantities of foods published in Family Economics Review , 1984(1). Estimates for the other plans were computed from quantities of foods published in Family Economics Review, 1983(2). The costs of the food plans are estimated by updating prices paid by households surveyed in 1977-78 in USDA's Nationwide Food Consumption Survey. USDA updates these survey prices using information from the Bureau of Labor Statistics, CPI Detailed Report, table 3, to estimate the costs for the food plans. 2 10 percent added for family size adjustment. See footnote 3. 3 The costs given are for individuals in 4-person families. For individuals in other size families, the following adjustments are s uggested: 1-person--add 20 percent; 2-person--add 10 percent; 3-person--add 5 percent; 5- or 6-person--subtract 5 percent; 7- or more-person--subtract 10 percent. ~ 9. ~ 0 0. a s: ~ Consumer Prices Consumer Price Index for all urban consumers [1967 = 100, unless otherwise noted] Group All i terns •••••••••••••••••••••••••••••••••••• Food •••••••••••••••••••••••••••••••••••••• Food at home ........................... . Food away from horne ................... . Housing ........................ · .......... . Shelter ................................. . Renters' costs 1 •••••••••••••••••••••••• Rent, residential ................... . Homeowners' costs 1 •••••••••••••••••••• Maintenance and repairs ••••••••••••••• - Maintenance and repair services ••••• Maintenance and repair commodities •• Fuel and other utilities ••••••••••••••••• Fuel oil, coal, and bottled gas •••••••• Gas (piped) and electricity •••••••••••• Household furnishings and operation ••••• Housefurnishings ..................... . Housekeeping supplies ••••••••••••••••• Housekeeping services ••••••••••••••••• Apparel and upkeep ••••••••••••••••••••••• Apparel commodities ••••••••••••••••••••• Men's and boys' apparel ••••••••••••••• Women's and girls' apparel •••••••••••• Infants' and toddlers' apparel ••••••••• Footwear .......................... · · · · Apparel services ....................... . Transportation ........................... . Private transportation ••••••••••••••••••• New vehicles .....................•.... Used cars ............................ · Motor fuel .... .......................... . Maintenance and repair •••••••••••••••••• Public transportation •••••••••••••••••••• Medical care ................. · · · • · · • · · · • • • • Medical care commodities ••••••••••••••••• Medical care services •••••••••••••••••••• Professional services •••••••••••••••••• Entertainment . • .................. · · · · · · • • • Other goods and services •••••••••••••••••• Personal care . .................. • · · · · • • • • Personal and educational expenses • ." ••••• 1 Indexes based on December 1982 = 100 base. Nov. 1986 330.8 324.6 309.9 365.8 361.7 410.2 124.3 285.6 121.5 377.1 433.7 272.9 371.1 452.0 426.7 251.2 201.4 320.4 348.5 213.1 197.4 205.3 175.0 307.0 215.1 339.0 304.3 295.8 230.2 361.0 260.9 368.4 431.7 444.6 278.2 481.5 399.8 277.4 354.9 293.4 448.2 Unadjusted indexes Oct. Sept. 1986 1986 330.5 323.7 309.5 364.0 363.0 409.5 124.0 284.6 121.3 379.0 437.5 273.0 379.1 451.9 441.4 251.6 202.2 319.8 348.5 213.2 197.6 204.3 176.4 312.0 215.1 338.3 302.6 294.1 226.7 360.6 263.2 365.7 428.7 442.3 277.5 478.8 398.0 276.5 354.6 293.1 447.6 330.2 323.2 309.0 363.3 363.7 407.6 123.6 283.2 120.7 376.2 437.0 268.7 388.3 453.5 461.1 251.5 202.2 320.1 347.8 212.1 196.6 203.2 175.7 309.7 212.0 336.7 302.2 293.7 224.2 359.5 271.1 365.0 428.5 439.7 276.7 475.7 396.1 275.3 353.3 292.0 445.2 Nov. 1985 326.6 311.1 296.6 351.3 355.0 391.3 118.4 271.7 115.8 372.7 426.4 271.5 392.1 641.6 440.5 248.9 200.8 316.4 342.7 211.2 196.8 203.6 176.5 307 .o 215.5 326.3 323.2 317 .o 218.2 376.4 376.7 355.8 412.8 413.0 262.7 445.8 375.5 269.0 335.3 285.4 415.4 Source: U.S. Department of Labor, Bureau of Labor Statistics. 1987 No.1 Family Economics Review JJ |
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