Until about 1929, outlays for services increased more rapidly than did expenditures for consumer goods, such outlays rising fifteenfold (at current prices) during the half century between 1869-1878 and 1919-1928. Between 1929 and 1954, however, service expenditures did not rise as much at current prices as did expenditures on goods, the decline during the depression years (1929-1933) being less, but the ensuing upswing from 1933 to 1954 also being less. Hence, contrary to what seems to be the popular belief, the share of services in total expenditures declined during the past two decades, falling to a low of just under 30 per cent in 1947. In the past few years the share has begun to increase again, but even in 1954 the share of services in total expenditures (36.5 per cent) was well below the 40.1 per-cent share in 1929. Price movements were not of much importance in the rise in service expenditures prior to the 1940's with the exception of the sharp inflation in 1919-20. However, the bulk (70 per cent) of the increase in aggregate service expenditures between 1933 and 1954 was attributable to price increases. Not only have the various components of services exhibited markedly different growth trends between 1935 and 1954, but the extent to which price movements have influenced this growth has also varied substantially by item. The greatest increases in dollar outlays during this period have been for user-operated transportation, private education and research, and clothing and jewelry services, while at the other end of the scale expenditures for purchased transportation and personal care rose the least. Price movements have been most instrumental in the case of personal care and domestic service, accounting for all or more than all of the increased outlays for these services between 1935 and 1954. To a large extent, the growth in service expenditures in recent years and the change in relative importance of different types of services can be attributed to three factors-the trend toward home ownership, the growing desire for private means of transportation, and the growth in the types and variety of appliances (including television).14 Underlying all of these is, of course, the postwar prosperity. Additional growth in the importance of services in our economy would seem to depend strongly on continued prosperity and further improvement in standards of living. An interesting possibility suggested by this analysis is that there is likely to be little relationship between the increase in expenditures for particular services in prosperity and the amount of decline in a subsequent recession. [ABSTRACT FROM AUTHOR]