07-1971

92d Congress, 1st Session

Economic Indicators

July 1971

Prepared for the Joint Economic Committee by the

Council of Economic Advisers

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON : 1971

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JOINT ECONOMIC COMMITTEE

(Created pursuant to Sec. 5(a) of Public Law 304, 79th Cong.)

WILLIAM PROXMIRE, Wisconsin, ChairmanWRIGHT PATMAN, Texas, Vice Chairman

SENATE

JOHN SPARKMAN (Alabama)J. W. FULBRIGHT (Arkansas)ABRAHAM RIBICOFF (Connecticut)HUBERT H. HUMPHREY (Minnesota)LLOYD M. BENTSEN, Jr. (Texas)JACOB K. JAVITS (New York)JACK MILLER (Iowa)CHARLES H. PERCY (Illinois)JAMES B. PEARSON (Kansas)

HOUSE OF REPRESENTATIVESRICHARD BOLLING (Missouri)HALE BOGGS (Louisiana)HENRY S. REUSS (Wisconsin)MARTHA W. GRIFFITHS (Michigan)WILLIAM S. MOORHEAD (Pennsylvania)WILLIAM B. WIDNALL (New Jersey)BARBER B. CONABLE, Jr. (New York)CLARENCE J. BROWN (Ohio)BEN B. BLACKBURN (Georgia)

JOHN R. STARK, Executive DirectorJAMES W. KNOWLES, Director of ResearchLOUGHLIN F. McHuGH, Senior Economist

COUNCIL OF ECONOMIC ADVISERSPAUL W. McCRACKEN, Chairman

HERBERT STEIN

Economic Indicators prepared under supervision of FRANCES M. JAMES

[PUBLIC LAW 120—81sT CONGRESS; CHAPTER 237—IST SESSION]

JOINT RESOLUTION [S J. Res. 55]

To print the monthly publication entitled "Economic Indicators"

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the JointEconomic Committee be authorized to issue a monthly publication entitled "Economic Indicators," and that asufficient quantity be printed to furnish one copy to each Member of Congress; the Secretary and the Sergeant atArms of the Senate; the Clerk, Sergeant at Arms, and Doorkeeper of the House of Representatives; two copies tothe libraries of the Senate and House, and the Congressional Library; seven hundred copies to the Joint EconomicCommittee; and the required number of copies to the Superintendent of Documents for distribution to depositorylibraries; and that the Superintendent of Documents be authorized to have copies printed for sale to the public.

Approved June 23, 1949.

Charts drawn by Art Production Branch, Office of the Secretary^ Department of Commerce.

Economic Indicators, published monthly, is available at 25 cents a single copyor by subscription at $3.00 per year (foreign, $4.00) from:

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Subscribers who wish to receive it at an earlier date after release may take advan-tage of provisions for airmail subscriptions. The domestic airmail subscriptionprice is $3.60 additional per year.

The 1967 edition of the Historical and Descriptive Supplement to EconomicIndicators, which describes each series and gives annual data for years notshown in the monthly issues, is available at 70 cents a copy from the Superintend-ent of Documents, Government Printing Office.


TOTAL OUTPUT, INCOME, AND SPENDINGTHE NATION'S INCOME, EXPENDITURE, AND SAVINGPreliminary estimates for the second quarter indicate that gross national product rose almost $20 billion (seasonallyadjusted annual rate). Except for the $32Vfc billion increase in the first quarter, which reflected recovery from the strike-depressed fourth quarter, the second quarter gain was relatively larger than any other since the third quarter of 1969.

[Billions of dollars; quarterly data at seasonally adjusted annual rates]

Persons Government

Period

1963.1964_1965.1966.1967.1968.1969_1970_

1970: I__II.

1971:

Disposable personal income

Total

Less:Interest

paid andtransfer

pay-mentsto for-eigners

404. 6438. 1473. 2511. 9546. 3591. 0634. 2687. 8

667.6685. 7696. 2701. 5722.0741. 1

9.710. 712. 013. 013. 915. 116.717. 9

17. 517. 818. 018. 318.618.9

Equals:Total

exclud-ing

interestand

trans-fers

Personalconsump-

tionexpend-itures

394 9427.4461. 3498.9532.4575.9617.5669.9

650. 1667.9678.2683.2703. 4722. 2

375. 0401. 2432. 8466. 3492. 1536. 2579. 6615. 8

604. 0613. 8620. 9624.7644. 6660. 1

Net receipts

Per-sonalsaving

ordis-

saving

19. 926. 228. 432.540. 439.837.954. 1

46. 254. 257.458. 558. 862. 1

Taxand

nontaxreceipts

oraccruals

Less:Trans-

fers,interest,

andsub-

sidies 2

168.8174. 1189. 1213.3228. 9263.5295. 6300. 5

296. 6301.8301.7301.9313.7

44. 446. 749. 955. 562.870.778. 494. 2

82. 797. 596.899.8

102. 0108. 5

Equals:Net

receipts

124, 3127. 3139.2157.9166.2192.7217.2206. 3

213. 9204.3204,9202. 1211. 7

Expenditures

Totalexpend-itures

166.9175.4186. 9212. 3242. 9270. 3288. 2313. 6

300. 0314. 0316. 9323.7330. 0338. 8

Less:Trans-fers,

interest,andsub-

sidies 2

44. 446.749. 955. 562. 870.778. 494. 2

82.797.596. 899. 8

102. 0108. 5

Equals:Pur-

chasesof goods

and

122.5128.7137.0156. 8180. 1199. 6209. 7219. 4

217. 3216. 5220. 1223.7228. 2230. 2

Surplusor

deficit.(-)'income

andproductaccounts

1.8-1.4

2.21. 1

-13.9-6.8

7. 4-13. 1

-3.4-12. 2-15. 2-21.7-16. 2

Period

1963.1964.1965.1966_1967.1968_1969_1970.

1970:

1971:

II _III.IV.

II

Business

Grossretained

earn-ings3

Grossprivate

domesticinvest-ment 4

68. 876. 284. 791. 393.095. 495.699. 3

96. 299. 1

100. 4101. 5107.2

87. 194. 0

108. 1121. 4116. 6126. 0137. 8135. 3

131. 2134. 1138. 6137. 3143. 8150. 1

Excessof

invest-ment

Nettransfers

to for-eignersby per-

sons andGovern-

ment

-18.4-17. 8-23. 4-30. 1-23. 5-30. 6-42. 1-36. 0

-35.0-35. 0-38. 2-35. 8-36. 6

International

2.82.82. 82.83. 02. 92. 93. 1

3.03.03.23. 33. 13. 2

Net exports of goodsand services

Exports

32. 337. 139. 243.446. 250. 655. 662. 9

61. 563. 263. 763. 266. 165. 8

Less:Imports

26. 428. 632. 338. 141. 048. 153. 659.3

58. 059. 059. 760. 561. 965.7

Equals:Net

exports

5. 98. 56. 95. 35. 22.52.03. 6

3. 54. 24. 02. 74.2. 1

Excess oftransfers

orof net

exports

3. 15.74. 12. 42. 2. 4. 9

-.5-1. 1

— 7! 7

-1.13. 0

Totalincome

orreceipts

590. 8633.7688. 0750.9794. 6866. 9933. 2978. 6

963. 2974. 3986. 7990. 1

1, 025. 4

Statis-tical

discrep-ancy

-0.3-1.3-3. 1-1. 0-. 7

-2.7-4. 1-4.5

-7.3-5.8-3. 2-1. 6-4.9

Grossnationalproduct

orexpend-

iture

590. 5632.4684.9749.9793.9864.2929. 1974. 1

956. 0968. 5983. 5988.4

1, 020. 81, 040. 5

1 Personal income (p. 5) less personal tax and nontax payments (fines, penal-ties, etc.).2 Government transfer payments to persons, foreign net transfers by Govern-ment, net interest paid by government, subsidies less current surplus oi gov-ernment enterprises, and disbursements less wage accruals.

3 Undistributed corporate profits, corporate inventory valuation adjustment,capital consumption allowances, and private wage accruals less disbursements.Does not include retained earnings of unincorporated business, which are in-cluded in disposable personal income.

4 Private business investment, purchases of capital goods by private nonprofitinstitutions, and residential housing.

fi Net foreign investment less capital grants received by U.S., with signchanged.

NOTE.—Series revised beginning 1968.Source: Department of Commerce.


GROSS NATIONAL PRODUCT OR EXPENDITUREGross national product (seasonally adjusted) increased at an annual rate of 7.9 percent in the second quarter, accord-ing to the revised series. When adjusted for price changes, the rate was 3.7 percent.

BILLIO1,100

1 nnn

onn

QAA

700

600

500

400

200

100

0

NS OF DOLLARS

_rf *-***""^-^

i-*1*"""""""0

^^^^r--m'-m -

\ \ \1965

r- H

— ..-i « •"»»«"

r^jv***"*"***'"'^*

it.."""""""."."."""1""

1'***'

NE"

! 1 1

1966

SEASOr

GROSS NA

_-— '^^^

PERSONE>

GCOF

\ EXPORTS OF GOCAND SERVICES

\

! ! 1

1967

\'ALLY ADJUSTED ANNUAL

TIONAL PRODUCT\\^*--

AL CONSUMPTION(PENDITURES

X.—»•«**""*

VERNMENT PURCHAGOODS AND SERV

^^^—

..ma"*1"1"*"""""****"*

DS

! i i1968

RATES

"~^~1

w

SFSCES

"'"" \X\

GROSS PRIVATEINVESTME

i 1 11969

«,•»-"•"""""

L__^...i..*....

DOMESTIC^JT

1 1 !

1970

BILLIONS OF DO

^

~*~*%

r~~~*

„«.««»*• '

i i/ 1 1

1971

LLARS1,100

1 nnn

900

OAfl

600

500

400

200

inn

0

J/PREUMINARYSOURCE. DEPARTMENT OF COMMERCE COUNCIL OF ECONOMIC ADVISERS

Period

196019611962 .196319641965___196619671968196919701970: I

IIIIIIV

1971:1II p

Totalgross

nationalproductin 1958prices

487. 7497. 2529. 8551. 0581. 0617. 8658. 1675. 2706.6724. 7720. 071 . 8721. 1723. 3715. 9729. 7736.3

Totalgross

nationalproduct

Billions <

503.7520. 1560. 3590. 5632. 4684. 9749. 9793. 9864. 2929. 1974, 1956. 0968. 5983. 5988.4

1, 020. 81, 040. 5

Personalcon-

sump-tion

expend-itures

3f dollars;

325. 2335. 2355. 1375. 0401. 2432. 8466. 3492. 1536. 2579. 6615. 8604. 0613. 8620. 9624. 7644. 6660. 1

Grossprivate

domesticinvest-ment

quarterly

74. 871. 783. 087. 194. 0

108. 1121. 4116. 6126. 0137. 8135. 3131. 2134. 1138. 6137. 3143. 8150. 1

Netexportsof goods

andservices

data at s

4.05.65. 15.98.56.95.35. 22. 52. 03. 63. 54. 24. 02. 74. 2.1

Govei

Total

easonalb

99. 6107. 6117. 1122. 5128.7137.0156. 8180. 1199. 6209. 7219. 4217. 3216. 5220. 1223. 7228. 2230. 2

"nment p

Total

? ad juste

53. 557. 463. 464. 265. 266. 977. 890. 798. 899. 297. 2

100. 296. 896. 195. 996. 796. 0

urchases (servicesFederal

iNationaldefense1

d annual

44 947.851. 650.850.050. 160. 772. 478. 378. 475. 4

78. 975. 174. 273. 273. 072, 0

jf goodt

Other

rates

8. 69.6

11.813. 515. 216. 817. 118. 420. 520. 721. 921. 321. 621. 922. 723. 724. 0

3 and

Stateandlocal

46. 150.253. 758. 263. 570. 179. 089. 4

100. 8110. 6122. 2117. 1119. 7124. 0127. 9131. 5134. 2

Implicitprice

deflatorfor total

GNP,1958 = 1002

103. 29104. 62105. 78107. 17108. 85110. 86113. 95117. 59122. 30128. 21135. 29132. 82134. 32135. 97138. 07139. 88141. 33

1 This category corresponds closely with budget outlays for national defense, NOTE.—Series revised beginning 1968. For details, see Survey of Current Busi-shown on p. 36. ness, July 1971.

2 Gross national product in current prices divided by gross national product -, _ J ^ , _in 1958 prices. Source: Department of Commerce.


NATIONAL INCOMEEmployee compensation rose at a seasonally adjusted annual rate of 7.7 percent from the first to the second quarter.The rise over the year was 6.9 percent.

BILLIONS OF DOLLARS900

BILLIONS OF DOLLARS1 900

800

700

600

500

400

"100

SEASONALLY ADJUSTED ANNUAL RATES

800

700

600

500

400

100'

TOTAL NATIONAL INCOME

COMPENSATION OF EMPLOYEES

CORPORATE PROFITS ANDINVENTORY VALUATION ADJUSTMENT

PROPRIETORS' ANDRENTAL INCOME

\ I

TT

NET INTEREST\

J L j/i i1965 1966

J/PRELIMINARYSOURCEt DEPARTMENT OF COMMERCE

1967 1968 1969 1970- 1971

COUNCIL OF ECONOMIC ADVISERS


Period

1960196119621963196419651966__1967196819691970

1970: III _ __IIIIV

1971: III v

Totalnationalincome

414, 5427. 3457. 7481. 9518. 1564.3620. 6653. 6711. 1763.7795. 9

785. 8793. 4802. 2802. 1

832. 2

Compen-sationof em-

ployees l

294. 2302. 6323. 6341. 0365.7393.8435. 5467. 2514. 6565. 5601. 9

593. 2598. 5606. 5609. 3

627.9639. 6

Proprieto

Farm2

12. 012.813. 013. 112.114.816. 114. 814,716. 815.8

17.816.614. 514. 4

14. 815. 2

rs' income

Businessand pro-fessional

34. 235. 637. 137. 940.242.445. 247.349. 550. 351. 0

50. 251. 051. 451. 5

51. 651. 9

Rentalincome

ofper-

15.816.016.717. 118.019.020. 021. 121. 222. 623. 3

23.023. 223. 423. 7

23. 824. 2

Netinter-est

8.410. 011. 613. 815.818.221. 424.426. 929. 933. 0

31. 832. 633.434. 2

35. 035. 8

Corporaltory va

Total

49. 950. 355. 758. 966.376. 182. 478.784. 378. 670. 8

69. 871. 573. 069. 0

79.0

}e profitsluation ac

Profitsbeforetaxes

49. 750. 355. 459. 466.877.884. 279. 887.684. 275. 4

75. 675. 878. 571. 6

82.6

and inven-Ijustment

Inventoryvaluation

adjustment

0.2-. 1

.3-. 5-.5

_1.7-1. 8-1.1-3. 3-5. 5-4. 5

-5.8-4.2-5.5-2. 6

-3.5— 5. 2



SOURCES OF PERSONAL INCOME

Personal income rose $20 billion (seasonally adjusted annual rate) from May to June, mainly because of the statutoryincrease in Social Security benefits ($3.4 billion) and the retroactive payment of these benefits ($13.3 billion).


800

700

600

500

400

300

200

100

....••....•"W"1""""""1"

1965 1966

OTHER INCOME

.TRANSFER PAYMENTS.

1967 1968 1969 1970


800

700

600

500

400

300

200

100

1971

SOURCE: DEPARTMENT OF COMMERCE COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars; monthly data at seasonally adjusted annual rates]

Period

1962196319641965196619671968196919701970: May...

JuneJuly...AugSept_._OctNovDec

1971: JanFeb_.._MarAprMay___June p_

1 Compensation csocial insurance am2 Employer contrpensation for injuriitems.A

Totalpersonalincome

442.6465. 5497. 5538.9587. 2629. 3688. 9750. 3803. 6802. 0801. 4805. 3809. 0814. 9813. 6815.7820. 9830. 4833. 6840. 1844.7850. 1870. 3

f employeesI wage accruibutions to pes; directors'

Wageand

salarydisburse-ments l

296. 1311. 1333.7358. 9394. 5423. 1464. 9509. 6541. 4541.5539. 6543. 0545. 1548. 7544. 2545.9551. 5559. 2561. 5566. 1569.0573. 3575. 3

(see p. 3) exals less disbu>rivate pensicfees; military

Otherlabor

income 2

13.914. 916. 618.720. 722.325.428. 230. 8

30. 430. 730. 931. 231.431.732.032. 232. 432. 632.833. 133.433. 7

eluding emprsements.m, health, areserve pay

Propriet<

Farm

13.013. 112. 114.816. 114. 814,716. 815. 816. 516. 015. 214. 613. 914. 214. 514, 614,714. 814. 915. 115. 215. 3

loyer contrit

nd welfare fuand a few 01

Drs' incomeBusinessand pro-fessional

37.137. 940. 242.445. 247.349. 550. 351. 051. 051. 451. 451. 451. 451. 551. 451. 551. 651. 551. 751. 851. 952. 0

utiont forh

nds: com- cher minor

Rentalincome

ofpersons

16.717. 118. 019.020. 021. 121. 222. 623. 323. 223. 323. 323. 423. 523. 523.723. 823. 923. 524. 024. 124. 224. 3

3 Personal i)inn wages, 5Mporations.NOTE.— SenSource: De]

Divi-dends

15.216. 517. 819.820. 821.423. 624. 425. 025. 124, 525. 125. 225. 425. 425. 523. 925. 625. 725. 525.525. 625. 2

acome exclusagricultural i

es revised be3artment of (

Personalinterestincome

27.731.434,938.743. 648. 052. 958. 864. 763. 764. 264. 965. 666. 366. 566. 766. 866. 967. 067. 067. 367. 567. 7

ive of net inlet interest,

ginning 1968Commerce.

Transferpay-

ments

33.335. 336. 739.944. 151. 859. 665. 979. 678. 379. 579. 980.882. 984. 784. 585. 186.887. 889. 189. 790. 2

108. 1

come of uninand net div

Less: Per-sonal con-tributionsfor socialinsurance

10.311.812. 513.417.720. 522.826. 328. 027. 927. 828. 228. 328. 528. 228. 328. 630.730. 831. 131. 131. 331.4

corporated farmidends paid by

N onagri-culturalpersonalincome 3

425.5448. 1480. 9519.5566. 3609. 4668. 8727. 7781.4778. 9778. 8784. 3788. 1794. 2792. 5795. 0800. 5809. 1812. 0818. 4822. 8828.0848. 1

enterprises,agricultural


HSPOSITION OF PERSONAL INCOMELarge transfer payments were important in the $20 billion (seasonally adjusted annual rate) increase in personalincome in the second quarter. Although personal outlays rose at a 10 percent annual rate, the (revised) saving rateremained above 8 percent for the fourth straight quarter.

BILLIONS OF DOLLARS

700

600 -

BILLIONS OF DOLLARS

700

600

DOLLARS4,000

3,500

3,000

2,500

2,000"

PER CAPITA DISPOSABLE PERSONAL INCOMESEASONALLY ADJUSTED ANNUAL RATES

400

DOLLARS4,000

IN CURRENT PRICES

1965 1971

3,500

3,000

2,500

2,000

J/PRELIMINARY-SOURCE: DEPARTMENT OF COMMERCE COUNCIl OF ECONOMIC ADVISERS

Period

1962196319641965196619671968 _ _ _19691970

1970: !___I I__III_IV__

1971: !___II"_

i

Per-sonal

income

442.6465. 5497. 5538. 9587. 2629. 3688. 9750. 3803. 6

784. 3803. 8809. 8816. 7

834. 7855. 0

Less:Per-

sonaltax andnontax

pay-ments

57.460. 959. 465.775. 483. 097. 9

116. 2115. 9

116. 7118. 0113. 5115. 2

112. 7113. 9

Equals:Dis-

posablepersonalincome

i

385. 3404. 6438. 1473.2511. 9546. 3591. 0634. 2687. 8

667. 6685. 7696. 2701. 5

722. 0741. 1

L

Totalpersonaloutlays l

Billions

363.7384. 7411. 9444.8479. 3506. 0551. 2596. 3633. 7

Seasc

621. 5631. 5638. 9643. 0

663. 2679.0

ess: PersePersoi

ex

Durablegoods

of dollars

49.553. 959. 266. 370. 873. 184. 089. 988. 6

malty adji

88. 690. 790. 484. 9

97. 6100. 0

mal outlaial consurpenditure

Non-durablegoods

162.6168. 6178.7191. 1206. 9215. 0230. 8247. 6264. 7

tsted annit

259. 4262. 9265. 5270. 9

272. 0279. 4

ysnptions 2

Services

143.0152.4163. 3175.5188. 6204. 0221. 3242. 1262. 5

,al rates

256. 1260. 2265. 0268. 9

275. 0280. 7

Equals:Personal

saving

21.619. 926. 228.432. 540. 439.837. 954, 1

46. 254. 257. 458. 5

58. 862. 1

Per capposable

incc

Currentprices

Dol

2,0662, 1392,2842,4362,6052,7512,9463, 1303,358

3, 2723,3533, 3953, 410

3,5003,584

>ita dis-personal>me

1958prices

lars

1,9692,0162, 1262,2392,3362,4042,4872, 5352,595

2,5702,6062,6132,588

2,6322, 669

Savingas per-cent of

dis-posablepersonalincome

(percent)

5. 64. 96.06.06. 47. 46.76. 07. 9

6. 97.98. 28.3

8. 1a 4

Popula-tion

(thou-sands) 3

186, 504189, 197191, 833194, 237196, 485198, 629200, 619202, 599204, 800

204, 012204, 526205, 107205, 728

206, 259206, 759

1 Includes personal consumption expenditures, interest paid by consumers,ind personal transfer payments to foreigners.

2 See p. 2 for total personal consumption expenditures.1 Includes Armed Forces abroad. Annual data are for July 1; quarterly data arefor middle of period, interpolated from monthly data.

NOTE.—Series revised beginning J%S.Source: Department of Commerce.


Pe^riV±mpeopul±nd Income received from farming

M . , f Net income perRealized gross 1Net to ,larm farm including net

T> - j ™ ™ TP operators inventory change 3

Period From From From Produc -all farm nonfarm Cash tion ex." Exclud- Includ-

sources sources sources receipts penSes ing net in-ing net in- Current 1967lotai rrom ventory ventory prices prices 4

market- h £ change'. ings ° °

Billions of dollars Dollars1962 _ 20.4 12.3 O 41.3 36.4 28.6 12.6 13.2 3, 586 3, 9411963 _ 20.6 12.1 8.5 42.3 37.4 29.7 12.6 13.2 3,708 4,0301964>_ 20.6 11.3 9.3 42.6 37.2 29.5 13.1 12.3 3,564 3,8321965 23.6 13.5 10.0 44.9 39.3 30.9 14.0 15.0 4,487 4,7231966 249 144 10.5 49.7 43.3 33.4 16.3 16.3 5,019 5,1211967 240 13.1 10.9 49.0 42.7 348 142 149 4,730 4,7301968 25.1 13.2 11.9 50.9 441 36.2 147 148 4,854 4,6671969 27.7 149 12.8 55.5 48.1 38.7 16.8 16.9 5,685 5,2161970 27. 5 14 2 13. 3 56. 6 49. 2 40. 9 15. 7 15. 9 5, 451 4, 782

Seasonally adjusted annual rates1970: I 5779 5 0 7 5 4 0 7 2 1777 17. 9 6, 120 I 57460

II 57.1 49.7 40.7 16.4 16.6 5,680 5,030III 55.7 48.4 41.2 145 146 4,990 4,380IV 55.6 48.3 41.4 14.2 145 4,960 4,310

1971:1 56.8 49.7 42.2 146 149 5,180 4,430II 57.6 50.6 42.8 148 15.3 5,320 4,510

1 Cash receipts from marketings, Government payments, and nonmoney in- 4 Income in current prices divided by the index of prices paid by farmers forcome furnished by farms. family living items on a 1967 base.a Inventory of crops and livestock valued at the average price for the year. -- „ . . „ , . „ „Also, see footnote 2, p. 3. NOTE.—Series revised beginning 1968.

« Based on Census of Agriculture definition of a farm. The number of farms is Source- Department of Agriculture,held constant within a year. &

FARM INCOMENet farm income excluding inventory change (seasonally adjusted) increased 11A percent in the second quarter,including inventory change, the increase was about 2% percent.


CORPORATE PROFITSThe revised estimates of corporate profits now show pronounced declines for both 1969 and 1970. In the first quarterof 1971 profits (including inventory valuation adjustment) rose $10 billion (seasonally adjusted annual rate) from thestrike-depressed fourth quarter level.

BILLIONS OF DOLLARS BILLIONS OF DOLLARS

20 20

1965

SOURCE: DEPARTMENT OF COMMERCE

1971



Period

19621963196419651966196719681969.. ._197CL

1970: I....II—III..IV...

1971: I.™II...

Corp

Allindus-tries

55. 758. 966.376. 182. 478. 784. 378. 670. 8

69. 871. 573. 069. 0

79. 0

mrate pr

M

Total

26.628. 332.739.342. 638. 741.736. 029. 5

31. 131. 530. 625. 0

33. 9

ofits (befovaluation

anufactur

Durablegoodsindus-tries

14. 115. 817.822. 824. 020. 722. 418. 413. 0

14. 314. 913. 88. 8

16. 9

re taxes)adjustmei

ing

Non-durablegoods

tries

12. 513. 014.916. 618. 618. 019. 317.516. 6

16. 716. 516. 816. 2

17. 1

and inverit

Trans-portation,

com-muni-

cations,and

publicutilities

8. 59. 5

10.111. 111.910.810. 610. 08. 0

8. 27. 87. 98. 1

8.5

itory

Allother !

20.520.623.525. 627. 929. 132. 032. 733. 3

30. 532. 234. 435. 9

36. 6

Corpo-rate

profitsbeforetaxes

55.459.466.877.884. 279. 887. 684. 275. 4

75. 675. 878.571.6

82. 6

Corpo-ratetax

liabil-ity

24. 226. 328.331. 334. 333.239.939.734. 1

34. 134. 535. 632. 3

37. 9

Cor]a

Total

31.233. 138.446. 549.946. 647. 844. 541. 2

41.541. 342. 939. 2

44. 7

3orate pifter taxe

Divi-dendpay-

ments

15.216.517. 819.820.821. 423. 624. 425. 0

25. 024. 925. 225.0

25. 625. 4

ofitss

Un-distrib-

utedprofits

16. 016.620.626. 729. 125. 324. 220.016. 2

16.616. 417. 714. 3

19. 1

Corpo-rate

capitalcon-

sump-tion

allow-ances 2

30. 131.833.936.439. 543. 046. 851.356. 2

54, 455. 756. 758.0

59. 160. 3

Profitsplus

capitalcon-

sump-tion

allow-ances 3

61.364. 872. 382.989. 589. 694.695. 897. 4

95. 997. 099. 697. 2

103.8

1 Includes all other industries and financial institutions.'*Includes depreciation and accidental damages.Corporate profits after taxes plus corporate capital consumption allowances.


64-676°—71-


GROSS PRIVATE DOMESTIC INVESTMENT -Gross private domestic investment rose more than $6 billion (seasonally adjusted annual rate) in the second quarter,reflecting increases in nonresidential investment, housing, and inventory investment.


140

120

100

80

20



"GROSS PRIVATE DOMESTICINVESTMENT

1965

- NONRESIDENTIAL

1966 1967

PRODUCERS'DURABLE EQUIPMENT

RESIDENTIAL STRUCTURES

1968 1969 1970

140

120

100

80

60

40

20

J/^RELIMINARYSOURCE: DEPARTMENT OF COMMERCE

1971



T> ' 1

1960196119621963__.19641965196619671968196919701970: I

IIIIIIV

1971: III v

Totalgross

privatedomesticinvest-ment

74.871. 783. 087. 194. 0

108. 1121. 4116. 6126. 0137. 8135. 3131. 2134. 1138. 6137. 3143. 8150. 1

Total

71.369. 777. 081. 388. 298. 5

106. 6108. 4118. 9130. 4132. 5130.8132. 1133. 5133. 6140. 6145.4

Total

48. 447.051.754. 361. 171. 381. 683. 388. 898.6

102. 1100. 8102. 1104. 8100. 8104. 3106. 1

Nc

Struc

Total

18. 118.419. 219. 521.225. 528. 528. 030. 334. 536. 836. 136. 637. 337. 137. 937. 8

Fixed im

mresident

tures

Non-farm

17.417.718. 518. 820.524. 927. 827. 329. 633. 735. 935.335. 736. 536. 337. 137. 0

vestment

ial

Produceble equ

Total

30. 328. 632. 534.839.945. 853. 155. 358. 564. 165.464. 765. 667. 563. 766. 368.3

rs' dura-ipment

Non-farm

27. 725.829.431. 236.341. 648. 450. 053. 659. 260. 059. 760. 661. 658. 160. 162. 1

Residstruc

Total

22.822.625. 327.027. 127. 225. 025. 130. 131. 830. 430. 029. 928. 732. 836. 439. 3

entialtures

Non-farm

22. 222.024. 826. 42ae26. 724. 524 529.531. 229. 729.429. 328. 132. 235.738. 7

Changeness inv

Total

3.62. 06. 05. 95.89. 6

1488. 27. 17.42. 8. 4

2. 15. 13. 73.247

in busi-entories

Non-farm

3.31. 75.35. 16.48. 6

15.07. 56.97.32. 5. 1

1. 84 73.33. 042

NOTE.—Series revised beginning 1968. Source: Department of Commerce.

8


EXPENDITURES FOR NEW PLANT AND EQUIPMENTBusinessmen expect a 3 percent rise in plant and equipment expenditures from 1970 to 1971, according to the OBE-SEC survey conducted in late April and May. Three months earlier they projected a 4 percent rise.


80

60

40

20



TOTAL NEW PLANT AND EQUIPMENT

1965 1966

NONMANUFACTURING

MANUFACTURING

I I i1967

A.

r

\ \ \1968

1 1 I1969 1970

I J I

80

60

20

J/SEE FOOTNOTE 3 BELOW.SOURCESi SECURITIES AND EXCHANGE COMMISSION AND DEPARTMENT OF COMMERCE

1971



Period

19611962196319641965196619671968196919701971 3

1970: IIIIIIIV

1971: I

IIs

III3

IV 3

Total »

35. 9138. 3940. 7746. 9754. 4263. 5165. 4767. 7675. 5679. 7181. 85

78. 2280. 2281. 8878. 63

79.32

82. 3882. 83

82.74

M

Total

14. 3315. 0616. 2219. 3423. 4428. 2028. 5128.3731. 6831. 9530. 60

32.4432. 4332. 1530. 98

30.46

30. 5430. 68

30. 74

anufactui

Dur-able

goods

6. 316. 797. 539. 28

11. 5014. 0614. 0614. 1215. 9615.8014.67

16. 4016. 3215. 7414. 92

14. 21

14. 6614. 89

14. 89

ing

Non-durablegoods

8. 028. 268. 70

10. 0711. 9414. 1414.4514. 2515. 7216. 1515.93

16. 0516. 1116.4016. 05

16.25

15. 8815. 79

15. 84

Mining

1. 291. 401. 271. 341. 461. 621. 651. 631. 861.891. 99

1. 921. 841. 861. 94

2. 04

2. 012. 00

Tra

Rail-road

0. 821. 021. 261. 661. 992. 371. 861.451. 861.781.73

1.741. 881. 961. 56

1.46

2. 001. 87

nsportat

Air

0.73. 52. 40

1. 021. 221. 742. 292. 562. 513.031. 82

2.942. 883. 243.08

1. 29

2. 301. 56

ion

Other

1.231. 651. 581. 501. 681. 641. 481. 591.681. 231. 45

1. 371. 121. 221. 22

1.33

1. 591. 56

52. 00

Publicutilities

5. 004. 904. 985. 496. 137.438. 74

10. 2011. 6113. 1415. 32

12. 1412. 7213.8413.68

14. 64

15. 1815. 64

Com-muni-cation

3.393.854.064.615. 306. 026. 346. 838.30

10. 1011.23

9. 1410. 3810. 6210. 20

10.70

2829

Com-mercial

andother 2

9. 139.99

10. 9912. 0213. 1914.4814.5915. 1416. 0516. 5917. 71

16. 5216. 9817.0015.97

17.39

.7551

Excludes agricultural business; real estate operators; medical, legal, educa-tional, and cultural service; and nonprolit organizations.

2 Includes trade, service, constructi9n, finance and insurance.^Estimates based on expected capital expenditures as reported by business

in late April and May 1971. Includes adjustments when necessary for systematictendencies in expectations data.

NOTE.—Annual total is the sum of unadjusted expenditures; It does not

necessarily coincide with the average of seasonally adjusted figures.These figures do not agree with the totals included in the gross national product

estimates oi the Department of Commerce, principally because the latter coveragricultural investment and also certain equipment and construction outlayscharged to current expense.

Sources: Securities and Exchange Commission and Department of Commerce.'


EMPLOYMENT, UNEMPLOYMENT, AND WAGESSTATUS OF THE LABOR FORCEThe civilian labor force (seasonally adjusted) declined by over 1 million in June. Employment dropped by 518,000and unemployment dropped by 528,000.

MILLIONS OF PERSONS* MILLIONS OF PERSONS*

1965

SOURCE: DEPARTMENT OF LABOR

1971


Period

1966___1967___1968___1969___1970___

1970:May_June.July.Aug.Sept.Oct..Nov.Dec.

1971:Jan..Feb.Mar.Apr..May.June-

Totallaborforce

(includ-ing

ArmedForces)

78, 89380, 79382, 27284, 24085, 903

84, 96887, 23087, 95587, 24885, 65686, 25586, 38686, 165

85, 62885, 65385, 59885, 78085, 95487, 784

Civiliaployi

Total

72, 89574, 37275, 92077, 90278, 627

Unadji

78, 35779, 38280, 29179, 89478, 25678, 91678, 74178, 516

77, 23877, 26277, 49378, 20478, 70979, 478

n em-nent

Non-agri-cul-

tural

Thous68, 91570, 52772, 10374, 29675, 165

isted

74, 63275, 17476, 17376, 11274, 73075, 52275, 51575, 564

74, 36174, 41574, 45274, 69975, 11175, 559

Unem-ploy-ment

ands of f2,8752,9752,8172, 8324,088

3,3844,6694, 5104, 2204, 2924,2594, 6074, 636

5,4145,4425, 1754, 6944,3945,490

Totallaborforce

(includ-ing

ArmedForces)

>ersons 1678, 89380, 79382, 27284, 24085, 903

85, 84986, 39285, 86585, 90486, 08486, S7986, 51286, 622

86, 87886, 33486, 40586, 66587, 02885, 948

Civilianlaborforce

years of75, 77077, 34778, 73780, 73482, 715

£

82, 62182, 21882, 71182, 77082, 97583, 30083, 47883, 609

83, 89788, 38483, 47583, 78384, 17883, 132

Civilia

Total

age and o72, 89574, 37275, 92077, 90278, 627

Seasonally

78, 60178, 29978, 57478, 50878, 47978, 69178, 55078, 463

78, 86478, 53778, 47578, 69878, 96178, 448

n emplo

Agri-cul-

tural

ver3, 9793,8443, 8173, 6063, 462adjusted

3,5703,5363,5088,4353,4868,2933, 3583, 408

3,4188,3293,3963,5588,4588,294

yment

Non-agri-cul-tural

68, 91570, 52772, 10374, 29675, 165

75, 08174, 76375, 06675, 07375, 04375, 39875, 19775, 055

75, 45175, 20875, 07975, 14075, 50375, 149

Unem-ploy-ment

2,8752,9752, 8172, 8324, 088

4, 0203,9144,1374,2624,4964, 6094,9285, 146

5,0334,8475,0005,0855,2174,689

Unemplrate (pe

civiliafor

Unad-justed

3. 83. 83.63. 54. 9

4. 15. 65. 35. 05. 25. 15. 55. 6

6.66. 66. 35.75. 36. 5

oymentrcent ofQ laborce)Season-ally ad-justed

Percent

4. 94. 85. 05. 15. 45.55. 96. 2

6.05. 86.06.16.25.6

Laborforce

partici-pationrate,unad-

justed 1

60. 160. 660.761. 161. 3

60. 762. 362. 762. 160.961. 261. 261. 0

60.560. 560. 360.460.461. 6

1 Total labor force as percent of noninstitutional population. Source: Department of Labor.

10


SELECTED MEASURES OF UNEMPLOYMENT AND PART-TIME EMPLOYMENTThe seasonally adjusted unemployment rate declined from 6.2 percent in May to 5.6 percent in June. The unemploy-ment rate for married men dropped from 3.3 to 3.1 percent.

UNEMPLOYMENT RATE, EXPERIENCEDWAGE AND SALARY WORKERS

UNEMPLOYMENT RATE,MARRIED MEN

1965 1971

SOURCE: DEPARTMENT Or LABOR COUNCIL OF ECONOMIC ADVISERS

Period

196619671968__19691970

1970: MayJune t _ _JulyAugSeptOct___ _Nov__Dec

1971: Jan_FebMar _ _Apr __Mav_ _ _June

Unen(percen

for

Allworkers

3.83.83.63. 54.9

4. 94. 85. 05. 15. 45. 55.96. 26.05. 86. 06. 16. 25. 6

iployment of civilisce in grot

Experi-enced

wage andsalary

workers

Per3.53. 63.43.34. 8

Seasonal!4.84. 64. 95. 05. 25.45.76. 15. 85. 65. 85. 75. 85. 4

t ratein laborip)

Marriedmen(wife

present)

cent1. 91.81.61.52. 6

y adjusted2. 52. 52. 72. 82. 93. 03. 23.43.33.23. 23. 13. 33. 1

Laborforce

time lost l

4.24.24.03. 95. 4

5.54. 95. 45. 55. 96. 16. 46.46.46.36. 56.46. 85.6

Over 40hours

21, 33420, 92020, 60020, 60818, 925

19, 92819, 26318, 52918, 45912, 87219, 63918, 64720, 23319, 07018, 46319, 44818, 20719, 50519, 069

Persons

35-40hours

Thousan32, 08832, 61632, 65834, 20133, 537

135, 89836, 35434, 68634, 78217, 07234, 15431, 70436, 24935, 68733, 88135, 83035, 76736, 54036, 723

at work iby hours

Total

ds of pers12, 03413, 29014, 78515, 21018, 222

Jnadjustec15, 73714, 18213, 40213, 00440, 20918, 17721, 99316, 43316, 57618, 96616, 26716, 65016, 04114, 646

n nonagriworked p

Ui

Part-tieconomi

Usuallyfull-

time 3

ons 16 ye871

1,060895955

1, 2011

1, 1161, 3211, 2041, 3901,0711, 2531, 2501,3091,4421,2671,2841,2421, 102

* 1, 142

cultural in>er week 2

ider 35 ho

me forc reasons

Usuallypart-time 4

ars of age793853820855995

8351,2501, 5591,307

973920

1, 1031,020

9731, 1231, 093

9881,081

s 1,515

idustries

urs

Part-tieconomi

Usuallyfull-

time 3

and over

Seasonal!1,2351, 1451, 2481, 3921, 0051,3471, 2491, 3821, 3771, 2271, 2421,3091,219

990

me forc reasons

Usuallypart-time 4

.

ij adjusted993979

1,058967

1,0701, 0621, 1641, 1511, 1071,2313,2131, 1851, 2851, 186

1 Man-hours lost by the unemployed and persons on part-time for economicreasons as a percent of potentially available labor force man-hours.

2 Differs from total nonagricultural employment (p. 10), which includes per-sons with jobs but not at work for such reasons as vacation, illness, bad weather,and industrial disputes.3 Includes persons who worked part-time because of slack work, materialshortages or repairs, new job started, or job terminated.

< Primarily includes persons who could find only part-time work.s Average hours worked: usually full-time, 24.1; usually part-time, 18.4.Source: Department of Labor.

11Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

UNEMPLOYMENT INSURANCE PROGRAMSIn June, insured unemployment under State programs averaged 310,000 higher than a year earlier. The seasonallyadjusted insured unemployment rate rose from 4.2 percent to 4.4 percent.

MILLIONS OF PERSONS MILLIONS OF PERSONS

JAN.

SOURCE: DEPARTMENT OF IABOR

MAR, APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC


Period

19671968196919701970: May

JuneJulyAug_Sept__ _OctNov _ _ _Dec

1971: Jan*Feb » __Mar v

Apr *May 'June v

Week ended:1971: June 5 _ _ _

1219 _26_ .

July 3 »10*

A

Coveredemploy-

ment

Thou56, 34257, 976

"60, 003

11 progran

Insuredunem-ploy-ment

(weeklyaver-age)

sands1, 2701, 1871, 1771,9321, 7781, 6961, 8971, 8551,7461, 8862, 2332,6323,1983,2143,0912,7562,5002,336

2,3932,3402,3252,3102,270

is

Totalbenefits

paid(mil-lions

of dol-lars)

2, 220. 02, 191. 02, 298. 64, 143. 5

315. 5315. 4340. 8340. 5328.5332.0372.9484. 1567.2579.5605.3599.6547.8545. 2

Insuredunem-ploy-ment

Weekly £1, 2051, 1111, 1011, 8051, 6671, 5831,7611, 7101, 6071,7242,0172, 3692,7992,7512,5822,2832,0011,893

1,9491,9011, 8841, 8701,844

Initialclaims

iverage, t226201200296246248333248244278335398427321275257238250

233244250247288335

Ste

Exhaus-tions

lousands171616252425242626263033384040424245

ite progra

Insurecploymencent of

emplo

Unad-justed

Per2.52. 22. 13.43.23. 03.33.23. 03. 23.74. 45. 35. 24. 94. 53.83. 6

3.73.63. 53. 53.5

ms

I unem-t as per-coveredyment

Season-ally ad-justed

sent

3. 63.73. 53. 74.14-44.54.03. 73.83.94.04.24*4

Benefit

Total(mil-

lions ofdollars)

2, 092. 32, 031. 62, 127. 93, 848. 5

293. 6292. 3314. 2312. 3299. 2304.2342. 1461. 5524. 4536. 1565. 9559. 7501. 3499. 7

— — — - —

s paid

Averageweeklycheck

(dollars)

41. 2543. 4346. 1750. 3149. 4649. 6849.5750. 6350.6451.4552. 2452. 4352. 8353. 1252.9453.3753.4953. 68

Source: Department of Labor.

12NOTE.—For definitions and coverage, see the 1967 Supplement to Economic

Indicators.


IfONAGRICULTURAL EMPLOYMENTlOtal nonagricultural payroll employment (seasonally adjusted) declined 310,000 in June. Largest employmentdecreases were in manufacturing (115,000), wholesale and retail trade (88,000), contract construction (53,000),and services (43,000).

MILANt76

72

68

64>

40

36

24

20

16

12

8

.IONS OF WAGE) SALARY WORKE

^-xr*^~*0^~^

£

-,,——-'

—

—

— — -' — — -'

1) M i i ^ M i ' iV 1968

SOURCE: DEPARTMENT O

^S (SEASONALLY ADJ

x- 11

ALL NOl'

ESTA

NC

MANUFACTURE

\

GOVERNMENT

\ j

1 1 1 1 1 1 t ! ! 1 1

1969

F LABOR

r

JSTED)

•T^*— .

^AGRICULTURAL .BLISHMENTS

\)NMANUFACTURI

(PRIVATE)

^G

'*..-«»

! 1 1 I 1 1 ! 1 ! 1 1

1970

Thousands of

-

-

_

-

via

"-"---

1 1 1 f f ! 1 t 1 1 INN

1971

wage and sal

MILAN16

14

12

^ 10-

12

r 10

Q

£

4

2

ary wor

LIONS OF WAGED SALARY WORKE

(ENLARGED S(

„— *— ***1<*~~~^~ —

WHOL

^«— **"

^

„...,....»»»•»»•"•""-.

A

-

I" M , 1 , M . ,1968

kers ; J season

RS (SEASONALLY ADJ

:ALE)

^— - T***^^

ESALE AND RET/>

,*- — — 'TSERVIC

DURABLEMANUFACTURE

NONDURABLEMANUFACTURING

\

CObCONS-

• . , . « 1 . . i . i

1969

ally adjusted]

USTED)

vIL TRADE.

ES

4G

,

V/

<JTRACTtRUCTION

i — 1 •

I I . , ! ! 1 . I 1 J

1970

COUNCIL

/ »

_.....,

-

*"

"*H*MUIN*

_ _ T — _fc

^

t f ^ I i I 1 t f 1 IK

1971 "

OF ECONOAMC ADVISERS

x

Period

1965196619671968196919701970: May-

June.July__Aug__Sept__Oct__Nov__Dec._

1971: JanFebMar-Apr...May p_June v-

Total

60, 81563, 95565, 85767, 91570, 27470, 66470, 83970, 62970, 58770, 41470, 53170, 18270, 08570, 30370, 65270, 59070, 65970, 73570, 89170, 581

Manufac

Total

18, 06219, 21419, 44719, 78120, 16919, 39319, 57219, 47719, 40219, 27119, 28518, 68418, 53818, 84218, 80718, 72818, 67218, 69018, 72118, 606

turing (i

Durablegoods

10, 40611, 28411, 43911, 62611, 89311, 20311, 38611, 28611, 21711, 13411, 14510, 60210, 45510, 75610, 71710, 66210, 60710, 62310, 65410, 585

private)

Non-durable

goods

7,6567,9308,0088, 1558,2778,1908, 1868, 1918, 1858, 1378, 1408,0828,0838, 0868,0908, 0668, 0658,0678, 0678, 021

Total

32, 67933, 95035, 01236, 28837, 90238, 67538, 66638, 59338, 59438, 54738, 66138, 78038, 77238, 68239, 02239, 01339, 10139, 12539, 20489, 026

N

Mining

632627613606619622620620618619621621625625625623624623623620

onmanu

Con-tractcon-

strue-tion

3,1863, 2753, 2083,2853,4373,3473,3513, 3243,3143, 3053, 2623, 2783, 3033, 3193,2413, 1983, 254?>, 289:i, 2(>83, 2 1 f>

facturin§

Trans-porta-tionand

publicutilities4,0364, 1514,2614,3104,4314,4984,4784,5114, 5394, 5204, 5114, 5094,4934,4374, 4994, 5214, 5164, 4914, 4964, d « M )

5 (private

Whole-saleand

retailtrade

12, 71613, 24513, 60614, 08414, 64514, 95014, 96814, 92714, 93314, 91214, 96115, Oil14, 94514, 85115, 13315, 14115, 15115, 15815, 21715, 129

)

Finance,insur-ance,andreal

estate3,0233, 1003,2253, 3823,5573,6793,6773, 6793,6763,6703,6843,6963,7113,7233,7463, 7453,7533, 7643, 7803, 786

Services

9,0879,551

10, 09910, 62311, 21111, 57711, 57211, 53211, 51411, 52111, 62211, 66511, 69511, 72711,77811, 78511, 80311, 80011, 82011, 777

Gover

Federal

2,3782,5642,7192,7372,7582,7052,7682, 6892,6682, 6592, 6492,6542, 6612, 6502, 6562, 6592, 6572, 6622, 6622, 6,35

nment

Stateandlocal

7,6968,2278, 6799, 1099,4469,8919,8339, 8709,9239, 9379; 936

10, 06410, 11410, 12910, 16710, 19010, 22010, 2f>X10, :H)410, ;m

i Includes all full- and part-time wage and salary workers in nonagriculluralBStablishments who worked during or received pay for any part of the pay periodwhich includes the 12th of the month. Excludes proprietors, self-employed per-sons, domestic servants, and personnel of the Armed Forces. Total derived fromihis table not comparable with estimates of nonapricultural employment of thejlvilian labor force, shown on p. 10, which include proprietors, self-employed

persons, and domestic servants; which count persons as employed when theyan* not at work because of industrial disputes; and which are based on an enu-merat ion of population, whereas the estimates in this table are based on reportsfrom employing establishments.

Source: Department of Labor. 10


WEEKLY HOURS OF WORK - SELECTED INDUSTRIESThe average workweek (seasonally adjusted) for private nonfarm production workers rose 0.1 hours to 37.1 hoursin June. There were increases of 0.4 hours in construction and 0.1 hours each in manufacturing and retail trade.

HOI46

44

42

40

38

36

34

42

40

38

36

34

32

30

JRS PER WEEK (SEA

TOTAL NOh

^ ^

4 , . M l M M .

1968

CONTRACT

p — v/ Y

1968

SOURCE: DEPARTMENT O

SDNALLY ADJUSTED)

^AGRICULTURE

1 1 1 ! 1 I 1 i 1 1 t

1969

CONSTRUCT

1969

F LABOR

vL PRIVATE

"" -- S— *

I 1 ! 1 1 I M 1 1 I

1970

DN

^V— y-

1970

i n i i l M M j N1971

v/v

1971

HO46

44

42

40

38

36

34

42

40

38

36

34

32

30

JRS PER WEEK <SEA

MANUFACTl

/v — n

> h , , , , I , , , , ,1968

RETAIL TRAC

1968

SONALLY ADJUSTED)

JRING

^ "* *+*>*

, , , , - , 1 1 i . . .1969

)E

**~~ „

1969

V»^^

, ! 1 . , 1 f . , , .

1970

__?IBBB1B1-_5i_

1970

COUNCIL

I 1 I I I 1 1 I I I .K

1971 ^

p*- *

1971

OF ECONOMIC ADVISERS

[Average hours per week1]

Period

196119621963196419651966 .1967 c__1968196919701970: May _'

JuneJulyAug _SeptOct .Nov ._D e c _ _ _ _ _ _

1971: JanFebMar__AprMay *June v

Totaln onagri-culturalprivate 2

38. 63& 738. 838. 738. 838.638. 037. 837. 737.237. 037. 437. 637. 637.037.036.837. 136. 736.636. 836. 736. 937. 3

Manufac-turing

Unad39. 840. 440. 540. 741. 241. 340. 640.740. 639. 839. 840. 03.9. 939. 839. 639. 639.739. 939. 639.439. 739. 539.940. 2

Contractconstruc-

tion

justed36. 937. 037. 337. 237.437. 637. 737. 437. 937. 438. 138. 438. 538. 536. 237. 636.237. 436. 135. 537. 137. 037. 038. 1

Retailtrade 3

37. 637.437. 337. 036. 635. 935. 334.734. 233. 833. 534. 134. 935. 033. 933. 5

.33. 433. 933. 233. 133. 233. 433. 334. 1

Totalnonagri-culturalprivate 2

87. 137. 287. 837. 236. 836. 986.937. 037. 136. 937.037. 087. 037. 1

Manufac-turing

Seasonall}

39. 889. 840. 139, 889.889. 439.639.639. 839.539.939. 839. 940. 0

Contractconstruc-

tion

T adjusted

38. 137. 687. 437.8.35. 136. 937. 188. 037. 136. 837.937. 487. 037. 4

Retailtrade 3

S3. 933. 833. 933. 983. 8S3. 833. 8S3. 633. 633.533. 6G>& QOO. O0® r?OO. i00 QOO. O

1 Data relate to production workers or nonsupervisory employees.2 Also includes other private industry groups shown on p. 13.3 Includes eating and drinking places.Source: Department of Labor.

14


VERAGE HOURLY AND WEEKLY EARNINGS - SELECTED INDUSTRIESAverage hourly earnings of private nonfarm production workers increased by 1 cent in June to $3.42 or 6% percentabove a year earlier. Average weekly earnings increased $1.74 in June to $1 27.57.

DOLL6.00

3.00

2.00

100

ARS

AVERAGE

" */"

MAN

^— ""

__

-- — -"a^"a"""

/I I I 1 !! I I 1 1 t 1

^ 1968

HOURLY EARh

>1f

*t**' CC

JFACTURING

^^^"^ \TOTAL NONAG

PRIVA

•• RETAIL TRADE -

I 1 ( I ! ! f I 1 ! I

1969

IINGS

x/•sr^ 't\CONTRACT)NSTRUCTION

ltM»«»"'"^V^

RiCULTURALTE

t I ( t 1 I ! I I ! 1

1970

^

-

IZ-

^ '

1 ! I ! 1 1 1 | 1 1 IN

1971

DOLL240

200

19fi

80

40

ARS

AVERAGE

f\

Xx VIy vx

%-nti*v

^— **""*'*'^^^^

~

/| 1 1 1 I 1 1 I 1 I !!

1968

WEEKLY EARb

yv/

*~/

MANUFACTURI

\,..,.,->.......-•-••-••••'

u "~~\TOTAL NONAG

PRIVA

, ^<«-=r«a — a*

RETAIL TRADE

i i . i i 1 > i ' i i

1969

JINGS

A V

v/\ y /> CONTRACTCONSTRUCTION

NG,>%*'

^f!***Tnm,*«

^-*>«~*^

RICULTURALTE

^~+~'~*°-*a

I I , I I h M J •

1970

,/'

X

^^

-~*-**

' 1 1 1 1 ! ! 1 ! 1 IN

1971


[For production workers or nonsupervisory employees]

Average hourly earnings—current prices , Average weekly earnings—current prices

Period

196119621963 _ _ _1964196519661967196S19691970 _ _ .

1970: MayJune _JulvAuo;_SeptOctNov - -Dec _

1971: JanFebMarApr. _Mav p

June p

Totalnon agri-culturalprivate l

$2. 142. 222. 282. 362. 452. 562. 682. 853. 043. 23

3. 201 21I 231 253. 295. 28*. 29}. JO1 34>. ~]r>J. 37> ""> Q">. OO

3. 413. 42

Manu-factur-

ing

$2. 322. 392. 462. 532. 612. 722. 833. 013. 193. 36

3. 343. 363. 373. 373. 423. 375 39>. 471 50]. 513. 523. 543. 553. 57

Contractcon-

struc-tion

$3. 203. 313. 413. 553. 703. 894. 114. 414. 785. 22

5. 105. 135. 205. 305. 365. 42f>. 435. 435. 505. 5:55. 5 15. 535. 635. (U

Retailtrade 2

$1. 561. 631. 681. 751. 821. 912. 012. 162. 302. 44

2. 432, 432. 442. 442. 482. 48•> 492. 472 522. 542. 552. 562. 582. 58

Totaln onagri-culturalprivate ]

$82. 6085. 9188. 4691. 3395. 0698. 82

101. 84107. 73114. 61120. 16

118. 40120. 05121. 45122. 20321. 73121. 36121. 07122. 43122. 58122. 61124. 02124. 05125. 83127. 57

Manu-factur-ms

$92. 3496. 5699. 63

102. 97107. 53112. 34114. 90122. 51129. 51133. 73

132. 93134. 40134. 46134. 13135. 43133. 45134. 58138. 45138. 60138. 29139. 74139. 83141. 65143. 51

Contractcon-

struc-tion

$118. 08122. 47127. 19132. 06138. 38146. 26154. 95164. 93181. 16195. 23

194. 31196. 99200. 20204. 05194. 03203. 79196. 57203. 08198. 55196. 32204. 42204. 61208. 31213. 74

Retailtrade 2

$58. 6660. 9662. 6664. 7566. 6168. 5770.9574. 9578. 6682. 47

81. 4182. 8685. 1685. 4084. 0783. 0883. 1783. 7383. 6684. 0784. 6685. 5085. 9187. 98

Adjustedhourly

earnings,jgg7_

100 3

83. 685.787. 890. 092. 495. 5

100. 0106. 1112. 3119. 4118. 8119. 1119. 7120. 3121. 5121. 0121. 8123. 7124. 6125. 2125. 6126. 3127. 2127. 1

Averageweeklyearn-ings,1967

prices 4

$103. 06106. 58108. 65110. 84113. 79115. 58114. 90117. 57117. 95114. 99114. 89115. 56115. 22114. 74115. 26113. 00113. 57116. 25116. 28115.82116. 64116. 33117. 26

Manufacturii!industries

'Also includes other private industry groups shown on p. 13.2Includes eating and drinking places.^Earnings in current prices, adjusted to exclude the effects of overtime and

interindustry shifts.

64-676°—71 3

4 Earnings in current prices divided by the consumer price index.Source: Department of Labor.

15


PRODUCTION AND BUSINESS ACTIVITYINDUSTRIAL PRODUCTIONIn June, industrial production (seasonally adjusted) rose 0.4 percent with increases occurring in all of the major in-dustry^ groups. However, June production was 3.8 percent below the mid-1969 high.

Index, 1967 = 100 (SEASONALLY ADJUSTED)130

Index, 1967 = 100 (SEASONALLY ADJUSTED)

100

90

1968

SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM COUNCIL OF ECONOMIC ADVISERS

[1967= 100, seasonally adjusted]

Period

1961196219631964196519661967196819691970 ^1970: May

June. _ _JulyAug_ _SeptOct.. ___ . _Nov _ _ _Dec ___ _

1971: JanFebM a r _ _ _ _ _ _ _ _ _ _AprMay___June *

Totalindus-trial

produc-tion

69. 474. 878. 683. 790. 798. 9

100. 0104. 7109. 3106106. 9106. 8107. 0106. 8104. 9102. 7102. 2104. 0104. 7104. 5104. 7105. 1105. 8106. 2

Mi

Total

68. 674. 378. 283. 390. 899. 3

100. 0104. 5108. 9104105. 3105. 2105. 5105. 0102. 599. 899. 6

101. 5102. 4102. 1102. 4102. 6103. 4103. 9

mufacturi

Durable

65. 472. 076. 181. 690. 7

100. 7100. 0103. 7107. 8101102. 4102. 2102. 3101. 898. 093. 892. 595. 496. 496. 396. 396. 297. 397. 6

Industry

ng

Non-durable

73. 077. 581. 085. 891. 197. 5

100. 0105. 6110. 3110109. 1109. 2110. 0109. 3108. 5108. 0109. 1109. 8110. 5109. 9110. 4111. 3111. 7112. 2

Mining

82. 984. 887. 290. 192. 797. 3

100. 0102. 3105. 21101 08. 9109. 5108. 1110. 7112. 2113. 0112. 6112. 1111. 4110. 1112. 0112. 1110. 2111. 0

Utilities

66. 171. 175. 781. 887. 094. 1

100. 0109. 5119. 6128127. 0127. 3127. 8127. 5131. 3132. 4129. 1129. 8130. 6132. 6131. 0133. 0133. 7134. 1

Fii

Total

70. 275. 678. 983. 390. 098. 2

100. 0104. 3107. 9105105. 9105. 6105. 4105. 2103. 0100. 9100. 7102. 9103. 2103. 0103. 2103. 2104. 0104. 4

Mai

lal produc

Con-sumergoods

75. 880.684. 388. 794. 599. 3

100. 0105. 7109. 4109109. 9109. 6110. 1110. 1107. 8105. 7105. 7109. 4110.8110. 8111. 9112. 5113. 5114. 1

•ket

3tS

Equip-ment

60. 466. 769. 273. 681. 996. 2

100. 0101. 8105. 19898. 898. 396. 896. 494. 592. 591. 791. 589. 988.987. 786. 787.387. 1

Mate-rials

68. 774. 178. 484. 291. 499.5

100. 0105. 1110. 6108108. 0108. 5108. 6108. 5107. 0104. 4103. 8105. 2106. 5106. 3106. 5107. 3107. 9108. 1

NOTE.—The indexes in this table were converted to a 1967 base from the FederalReserve indexes published on a 1957-59 base.

16Source: Board of Governors of the Federal Reserve System.


PRODUCTION OF SELECTED MANUFACTURESin June, production increases (seasonally adjusted) occurred in most major durable and nondurable manufactures.An exception was primary metals, down almost 1 percent.

Index, 1967 = 100 (SEASONALLY ADJUSTED)130

Index, 1967=100 (SEASONALLY ADJUSTED)

CHEMICALS, PETROLEUM,

AND RUBBER

TRANSPORTATION

EQUIPMENT TEXTILES, APPAREL

AND LEATHER

100 —-

90

801968

SOURCEi BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM COUNCIL OF ECONOMIC ADVISERS

[1967 = 100, seasonally adjusted]

Period

1961196219631964196519661967196819691970"1970: May

June _ _ _ _ _JulyAug _ _ _ _ _ __Sept_OctNov _ _ _ .Dec

1971: JanFebMarApr _ _ _ . _ _ _ _May-June v

Primarymetals

74. 678. 985. 597.4

103. 8107. 7100. 0103.4112. 5106

107. 6107. 7109. 6109. 9107. 6101. 197. 6

102. 2

103. 8106. 3108. 0109. 1110. 9110

Durab

Fabri-catedmetal

products

65. 872. 376. 282. 091. 3

100. 7100. 0103. 7111. 1106

105. 9106. 4106. 5106. 2104. 599. 298. 098. 8

100. 7101. 4J O I. 8101. 8102. 8104

le manuff

Machin-ery

60.267. 370. 477. 187.5

100. 2100. 0100. 5106. 7103

104. 1103. 9104. 3103. 8101. 599. 797. 696. 395. 394. 394. 594. 595. 696

ictures

Transpor-tationequip-ment

62. 571. 476. 678. 990. 0

100. 7100. 0108. 3105. 490

94. 996. 595. 494. 683. 973. 673. 686. 089. 789. 888. 586. 287. 087

Lumberand

prod-ucts

86. 790. 893.296. 3

100.4102. 1100. 0104. 6101. 9

99. 392. 094. 597. 792. 694.291. 590. 5

100. 1100. 099. 5

100. 5

No

Textiles,apparel,

andleather

77.882. 685.089. 897. 4

101. 6100. 0103. 9103. 498

98. 197.497. 597. 597. 097. 395. 497. 3

98. 396. 997. 999. 6

100. 7101

ndurable

Paperand

print-ing

75. 178. 080. 385.290. 497. 9

100. 0103. 9109. 9108

109. 0108. 1108. 2108. 4105. 3105. 4107. 3106. 8106. 9106. 9106. 6106. 9107. 2108

manufactu

Chemicals,petro-

leum, andrubber

62. 669. 174.680. 386. 695. 7

100. 0109. 3117. 2118

115. 9118. 1119. 4117. 6116. 8116. 6117. 9118. 5

118. 9117. 91 18. (i1 20. f>120. 9122

res

Foods,bever-

ages, andtobacco

83. 786.088. 791. 793. 797.3

100. 0102. 7105. 5107

107.3105. 7106.3106.4107. 1105. 1107. 2108. 4110. 01 10. 1110. 5109. 01 09. 7110

NOTE.—The indexes in this table were converted to a 19G7 base from (Reserve indexes published on a 1957-59 base.

ic Federal Source: Bonn! of Governors of the Fedora) Reserve' System.

17


WEEKLY INDICATORS OF PRODUCTIONSteel output decreased by 8 percent in June and cars assembled by 11 percent.

MILLIONS OF TONS

3.5

2.5

1.5

STEEL

IA i i i i ! i i i I i i i I i i i I i i i i I i i i I i i i I i M i I i i ! I i i i i I i i i I i i iv J F M A M J J A S O N D v

BILLIONS OF KILOWATT HOURS35

0 i t i i i I ij i LLI i J i i i t i . i . -L - i1 I-.I-L!-..LJ F M A M J J

SOURCES: AMERICAN IRON AND STEEL INSTITUTE. DEPARTMENT OF THE INTERIOR,EDISON ELECTRIC INSTITUTE, AND WARD'S AUTOMOTIVE REPORTS COUNCIL OF ECONOMIC ADVISERS

Period

Weekly average:1964196519661967 _196819691970"1970: May

June _ _JtilvAug_._ _ _ _Sept _ _ _OctNovDec

1971: JanFebMarApr _ _MayJune p

Week ended:1971: June 5

121926

July 3 *>10 *>„_17 P..

Steel piThousands

of nettons

2, 4312,5212, 5722, 4402, 5152, 7092, 5222, 6132, 6392, 4392, 4302, 5062, 4152, 3332, 3612, 5452, 7192, 8542, 9292, 9172, 686

2, 7862, 7372, 7482, 6472,4622,348

2 2, 388

DeducedIndex

(1967=100)

99. 6103. 3105. 4100. 0103. 1111. 0103. 4107. 1108. 399. 899. 6

102. 699. 095. 796. 6

104. 3111. 4117. 0120. 2119. 6110. 2

114. 2112. 2112. 6108. 5100. 996. 297. 9

Electricpower

distributed(millions of

kilowattr-hours)

18, 72820, 16921, 97123, 16925, 24427, 58829, 28827, 87529, 74731, 40632, 19130, 18027, 66428, 30629, 44231, 20030, 86429, 99328, 57028, 92132, 551

29, 34832, 25132, 83534, 09034, 230

2 32, 275

Bituminouscoal mined(thousands

of shorttons) l

1,6301, 7351, 7981, 8681, 8271, 8941, 9901, 9371, 8992, 0192, 0172, 0672, 0472, 1732, 0572, 0581, 9542, 1022, 0362, 0022, 148

2, 2652, 2571, 6682, 1933, 108

2 2, 345

Freightloaded

(thousandsof cars)

558562570540543543522566557501540541553514454488487506523526525

497554527553496394

Paperboardproduced

(thousandsof tons)

384410446439479507489515498446490469497501442488506516508513510

496521518522491357

Carassemb

Total

178. 8213.7199. 3172. 9207.6195. 7158. 9212. 6228. 1133. 999. 6

137. 8113. 1108. 0155. 8220. 3231. 0230. 2211. 6232. 4212. 3

197. 2237. 6232. 3224. 8169. 9163. 0

2 163. 7

3 and trtled (thoi

Cars

148.8179.4165. 4142. 4170. 1158. 1125. 9171. 9185. 0102. 964. 6

107. 188. 886. 7

125. 7181. 7188. 8188. 1170. 6190. 6169. 7

159. 5192. 4185. 8178.0132, 8131. 3137. 2

icksisands)

Trucks

30. 034.333. 930. 537.537. 633. 040. 743. 131. 034. 930. 724. 421. 330. 138. 542. 242. 140. 941. 742. 6

37. 745. 246. 546. 837. 131. 726. 5

1 Daily average. Includes data for Alaska.2 Not charted.

18Sources: American Iron and Steel Institute, Edison Electric Institute, Depart-

ment of the Interior, Association of American Railroads. American Paper Insti-tute, and Ward's Automotive Reports.


foEW CONSTRUCTIONAccording to preliminary estimates, expenditures for new construction (seasonally adjusted) changed little in May.In the private sector, declines in nonresidential construction were partially offset by a rise in residential.


90

80

70

60

50

40


TOTAL NEW CONSTRUCTION

V

PRIVATE

PUBLIC

100

90

80

70

60

50

40

PRIVATE RESIDENTIAL (NONFARM)

20

SOURCE: DEPARTMENT OF COMMERCE

1971


Period

196519661967196819691970

1970: AprMay__ .. _JuneJulyAugSeptOctNovDec

1971: JanFobMar.. _ _Apr.May v

Total newconstruc-

tionexpendi-

tures

72. 375. 176. 284. 790. 991. 3

90. 789. 790. 189. 190. 091. 092. 392. 999. 299. 7

102. 0102. 2103. 8103. 9

Total

50. 351. 150. 657. 062. 863. 1

63. 662. 761.760. 761. 562. 764. 564. 667. 069. 770. 372. 174. 273. 5

Residents

Total l

Bi26. 324. 023. 728. 830. 629. 3

Seasonally

29. 829. 227. 727. 027. 528. 830. 531. 833. 434. 235. 136. 838. 038. 6

Private

il n on farmNew

housingunits

lions of dol]20. 418. 017. 922. 423. 721. 9

I adjusted ar

21. 320. 620. 020. 421. 422. 323. 224. 125. 726. 928. 129. 430. 731. 2

Commer-cial and

industrial

ars11. 913. 613. 113. 916. 516. 5

inual rates

16. 816. 416. 815. 916. 416. 116. 215. 015. 717. 517. 417. 417. 71C). < )

Other

12. 113. 613. 714. 215. 717. 4

17. 017. 117. 217. 717. 517. 817. 817. 717. 918. 017. 817. 91 8. r>IS. 0

Federal,State,andlocal

22. 124. 025. 627. 728. 128.2

i

27. 127. 028. 428. 428. 528. 327. 928. 332. 230. 131. 730. 029. 6:*<). 4

Constructio

Total valueindex,

(1967 =100)

93. 294. 8

100. 0113. 2123. 7123. 1

|Seasonally

adjusted

130110120116135118115130132117126141161141

n contracts2

Commer-cial and

industrialfloor space(millions ofsquare feet)

680769694779883741

Seasonallyadjustedannual

rates

768698654845732722621648656652600785658761

1 Includes nonhousekeeping residential construction and additions and altera-tions, not shown separately.I 2 F. W. Dodge series. Relates to 50 States beginning 1970 for value index andbeginning 1971 for floor space.

Sources: Depart men t of CommerceCompany, F. VV. Dodge Division.

and JMcCiraw-Ui l l Information Systems

19


NEW HOUSING STARTS AND APPLICATIONS FOR FINANCINGPrivate housing starts in June increased slightly to a seasonally adjusted annual rate of almost 2 million units. Permitsfor future housing declined following a sharp rise in May.

MILLIONS OF UNITS2.5

MILLIONS OF UNITS2.5

1.0 1.0

1965


[Thousands of units]

Period

1965_ __ _19661967196819691970

J970: May _ _ _ _June__ _ _ _JulyAug _ _ _ _SeptOctNov__ _ _ _Dec

1971: JanFebMarAprMay?June*

Totalprivate

andpublic(includ-

ingfarm)

1, 509. 61, 195. 91, 321. 9I, 545. 51, 499. 61, 467. 0

127. 3141.6143. 4131. 6133. 4143. 4128. 3123. 9114. 8104. 6169. 3203. 6201. 9195. 3

Totalprivate(includ-

ingfarm)

1, 472. 91, 165. 01, 291. 61, 507. 71, 466. 81, 433. 6

125. 0135. 2140. 8128. 7130. 9140. 9126. 9121. 4110. 6102. 2167.9201. 1196.9192.3

liou

Total (

Total

1 472. 91 165. 01 291. 61 507. 71 466. 81 433. 6

1, 2421, 3931, 6031,4251, 5091,5831,6932, 0541,7251,754I, 9591,9121,9591,982

sing star

including

Oneunit

963. 8778. 5843. 9899. 5810. 6812. 9

728835827838881890934

1, 240946985

1,0481,0981,1201, 165

ts

Private

j farm)

Two ormoreunits509. 1386. 5447. 7608. 2656. 2620. 7Seasons

514558776587628693759814779769911814839817

Goverhome p

(nonl

FHA

159. 9129. 1141. 9147. 7153. 6233. 5

illy ad jus194215230238246266288354410290265278265284

nmentrogramsarm)

VA

49. 436. 852. 556. 151, 261. 0

ted annu5752516460647178767383949795

Newprivatehousing

unitsauthor-ized l

1, 239. 8971. 9

1, 141. 01, 353. 41, 322. 31, 324. 2

al rates1, 3091,2851, 3091, 3781,3881,5231, 4871,7681, 6351, 5631,6271, 6381, 9271,817

Proposeconstr

Applica-tions for

T^TT A

commit-ments 2

188. 9153. 0167. 2168. 9187. 6315. 0

271291297327337326345474371350336347374310

d homeaction

Requestsfor VA

apprais-als 2

102. 199. 2

124.3131. 7138. 2143. 7

133126126152139168157149190174183210218257

1 Authorized by issuance of local building permit; in 13,000 permit issuingplaces beginning 1967; 12,000 for 1963-66; and 10,000 prior to 1963.

2 Units represented by mortgage applications for new home construction.

Sources: Department of Commerce, Federal Housing Administration (F1IA'and Veterans Administration (VA).


BUSINESS SALES AND INVENTORIES - TOTAL AND TRADEBusiness inventories rose $0.6 billion (seasonally adjusted) in May, about the same as in April, while sales were upabout % percent. Retail sales in June rose more than 11/2 percent, according to advance reports.

BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)180

BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)

160

140

'120

100

40

20

TOTAL BUSINESSINVENTORIES

TOTAL BUSINESS-SALES

1968

RETAIL INVENTORIES

1969

\.RETAIL SALES -

1970 1971

RETAIL TRADE (ENLARGED SCALE)-DURABLE GOODS STORES

1968

SEE^BELOW.SOURCE: DEPARTMENT OF COMMERCE

1971


Period

196319641965196619671968196919701970: Apr _ _

May _ -JuneJulyAugSept _ _ _OctNov _Dec

1971: JanFebMar _AprMay v _June

Total b

Sales 2

68, 96973, 68580, 27687, 18488, 96296, 989103, 755106, 488105, 087106, 847107, 612108, 393108, 175108, 074106, 224104,917107, 019108, 996110, 734112, 521113, 167113, 946

usiness 1

Inven-tories 3

105, 477111, 457120, 900136, 988143, 334152, 699164, 917171, 136167, 059166, 734167, 375168, 635169, 364170, 038170, 352170, 873171, 136171, 431171, 758172, 620173, 200173, 834

Whol

Sales 2

JN

13, 38214, 52715, 59516, 97917, 09918, 32919, 72620, 55420, 01220, 68420, 65620, 63920, 69820, 71420, 75420, 64120, 71821, 33821, 33421, 67621, 89722; 302

esale

Inven-tories 3

Millions of (

16, 04816, 97718, 27420, 69121, 55722, 52824, 36326, 60424, 94224, 99025, 14225, 41025, 42325, 68926, 00326, 33426, 60426, 64626, 80626, 78827, 04627, 163

Total

iollars, se

20, 55621, 82323, 67725, 33026, 15128, 27729, 30330, 38130, 53630, 50230, 51830, 72930, 78130, 88530, 53430, 20830, 48131, 15431, 59732, 26732, 84432, 522

4 33, 045

Sales 2

Durablegoods

asonally a

6,6617, 0497, 8498, 1928, 3489, 1879,3989, 141

9,3409, 3209, 4119,4879, 5039, 5568, 9278, 3808, 0599, 4809, 79110, 18110, 44910, MO

4 10, ;J:JG

R<

Non-durablegoodsstores

d justed

13, 89514, 77315, 82817, 13817, 80319, 09019, 90421, 24021, 19621, 18221, 10721, 24221, 27821, 32921, 60721, 82821, 82221, 67421, 80622, 08622, 39522, :m>

4 22, 709

3tail

Total

29, 38631, 09434, 40538, 07338, 95241, 60444, 62344, 91844, 32644, 10944, 52744, 96545, 45345, 69144, 88344, 50744, 91844, 98445, 43246, 41646, 72847, 146

Inventories

Durablegoods

12, 57213, 31815, 25317, 25817, 27718, 85119, 98019, 04019, 42619, 34619, 55219, 73920, 11920, 27019, 29118, 54219, 04018, 9871 9, 48020, 13120, 23220, 716

3

Non-durablegoodsstores

16, 81417, 77619, 15220, 81521, 67522, 75324, 64325, 87824, 90024 76324, 97525, 22625, 33425, 42125, 59225, 96525, 87825, 99725, 95226, 28526, 49626, 430

1 The term "business" also includes manufacturing (sec page 22).2 Monthly average for year and total for month.* Book value, end of period, seasonally adjusted.

* Uiioilicial estimates.

Source: Department of Commerce.

21


MANUFACTURERS' SHIPMENTS, INVENTORIES, AND NEW ORDERSBoth new orders and shipments of manufacturers (seasonally adjusted) increased in May. The rise in inventories againwas small.

BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)70

MANUFACTURERS' SHIPMENTS

BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)

60

50

40

30

20

40

30

20

DURABLE GOODS

\ -x-^• •• ••••"••JU****"*""'"'*"1"

-NONDURABLE GOODS —

MANUFACTlDURABLE GC

\

^ J/

\\ \ 1 1 1 ! I I 1 ! |

1968

JRERS' NEW C)ODS

"•""""" "" \NONDURAI

i i i i i 1 i i i i i1969

DRDERS

/V^ X

titl"*.,,,***'""""11*"***'

IE GOODS >

1 ! 1 | 1 1 1 1 1 1 1

1970

r-"~>^

,„„*,...,

i i i i i 1 i i t i iK

1971 "

MANUFACTURERS' INVENTORIES

NONDURABLE GOODS

\ ,,,L,

40

30

201968

SOURCE: DEPARTMENT OF COMMERCF

1971


P£»rf nrl

19631964196519661967196819691970

1970: AprMay_Junc__ _JulyAug__ _SeptGet _Nov_ _Dec

1971: JanFebMar__Apr_ _ _May p

Manufac

Total

35, 03237, 33541, 00344, 87645, 71250, 38454, 72755, 554

54, 53955, 66156, 43857, 02556, 69656, 47554, 93654, 06855, 82056, 50457, 80358, 57858, 42659, 122

turers' sh

Durablegoods

18, 24719, 63422, 21624, 63524, 97327, 65330, 41530, 127

29, 63330, 48830, 63831, 31531, 27030, 86329, 36928, 81530, 02430, 54531, 35232, 09331, 77132, 277

ipments 1

Non-durablegoods

16, 78617, 70118, 78820, 24020, 73822, 73124, 31125, 427

24, 90625, 17325, 80025, 71025, 42625, 61225, 56725, 25325, 79625, 95926, 45126, 48526, 65526, 845

Manufad

Total

Millions

60, 04363, 38668, 22178, 22482, 82588, 56795, 93199, 614

97, 79197, 63597, 70698, 26098, 48898, 65899, 466100, 03299, 61499, 80199, 52099, 41699, 42699, 525

turers' iiiv

Durablegoods

of dollars

35, 813 |38, 436 ;42, 227 149, 84953, 53057, 39963, 54765, 548

64, 68964, 44764, 39565, 07965, 29065, 32365, 62865, 92065, 54865, 61065, 34765, 35265, 39165, 366

eiitories 2

Non-durablegoods

seasonal

24, 23024, 95025, 99428, 37529, 29531, 16832, 38434, 066

33, 10233, 18833, 31133, 18133, 19833, 33533, 83834, 11234, 06634, 19134, 17334, 06434, 03534, 159

Ma

Total

y ad juste

35, 32237, 95241, 80345, 93845, 92850, 67054, 93355, 009

53, 37455, 13955, 77857, 11155, 96855, 52354, 19054, 29156, 43157, 37758, 28858, 32657, 27957, 895

nufacture

Durat

Total

d

18, 521 120, 25822, 98625, 70925, 18927, 94230, 62429, 570

28, 44929, 97730, 02831, 39930, 53729, 85628, 50429, 00930, 60231, 40531, 86731, 77330, 63631, 062

rs' new orde

)le goods

Producers'capitalgoods

industries

3, 4123, 9354, 4355, 2685, 2505, 8046, 5536, 429

5, 9846, 3026, 2816, 4116, 2996, 7596, 5526, 8736, 5546, 9907, 5186, 7676, 2256, 578

rs i

Non-durablegoods

16, 80117, 69418, 81720, 22920, 73922, 72824, 30925, 439

24, 92525, 16225, 75025, 71225, 43125, 66725, 68625, 28225, 82925, 97226, 42126, 55326, 64326, 833

Manu-fac-

turers'

tory-ship-mentsratio 3

1. 691. 641. 601. 621. 771. 701. 691. 76

1. 791. 751. 731. 721. 741. 751. 811.851. 781. 771. 721. 701. 701. 68

1 Monthly average for year and total for month.- Book value, end of period, seasonally adjusted.3 For annual periods, ratio of weighted average inventories to average monthly

shipments; for monthly data, ratio of inventories at end of month to shipmentsfor month.


22


MERCHANDISE EXPORTS AND IMPORTSThe merchandise trade balance was in deficit by $205 million (seasonally adjusted) in May, an improvement of$10 million over April's deficit.


Z5

2.0

1.5

1.0

ZO

15

1.0

" 1965

II SEE NOTE BELOW.


[Millions of dollars]

Period

Monthly average:1962196319641965196619671968.19691970 _

1970: Apr__May_June-July.Aug_Sept_Oct__Nov_Dec__

1971: Jan__Feb__Mar_Apr. _May_

Totalmg ree


3,4093,6613, 7303,6998,5923, 5533, 6893,4993, 5703, 7353,6903,8153,5433, 783

]\(includ-xports) l

Unad-justed

1, 7481,8692, 1532, 2292,4582,5862,8393, 1113,555

3,5973, 9063,7183, 5503,2653,3353,9173,4943,6853,4823, 5274, 1083, 8293,914

/lerehandi

Total i 2

1, 7251,8452, 1232, 2012,4212,5542,8023,0663,502

U

3, 5423, 8453, 6703,4883,2163,2833, 8443,4453, 6343, 4343, 4704,0593, 7643, 854

se exportDomesti

Food,bever-ages,

and to-bacco

312349386377432392383370421

oad juste

367381396424405429535512485439403455401423

;S

3 exportsCrudemate-rialsandfuels

280315361356367394405417558

d

556565608545528536629574667554537596578550

Manu-fac-

turedgoods

1, 1391, 1911,3771,4531, 6021,7371, 9852,2322,445

2, 5532, 8142, 5642,4262,2052,2422, 6212,2942, 3752,3512, 4452,9362, 6722,792

To


3,2633} 3383, 2663,2553,8463,4283,5013,4283,4043,6863,5533,5693, 7588, 988

MerchGen<

tal 2

Unad-justed

1, 3661,4281, 5621,7862, 1352, 2412, 7693, 0043, 330

3, 3913,1763,5043, 3123, 1163,4523, 5993,4063,5563,4223, 1943, 9123, 8983, 845

andise ii3ral imp(

Food,bever-ages,

and to-bacco

306322335334382392447442520

Unad

560474546504484511547518575523442528593521

nports)rts 3

Crudemate-rialsandfuels

391396419453476447503533546

justed

516520567507561551547516600515480641569611

Manu-fac-

turedgoods

637672759937

1,2041, 3131, 7191, 9182, 159

2,2082, 0862,2792, 1861, 9652,2712,3842, 2632, 2652, 2662, 1632, 6202, 6122, 586

Gross-merchan-dise tradesurplus,season-ally ad-justed

38244159044432334570

107225

146323465446246125188

7116649

186245

— 215— 205

1 Total excludes Department of Defense shipments of grant-aid military sup-plies and equipment under the Military Assistance Program.2 Total includes commodities and transactions not classified according to kind.8 Total arrivals of imported goods other than intransit shipments.

NOTE.—Data adjusted to include silver ore and bullion reported separatelyprior to 1969.

Source: Department of Commerce. ^jO


U.S. BALANCES ON GOODS, SERVICES, AND TRANSFERSThe merchandise trade surplus increased to $1.1 billion (seasonally adjusted annual rate) in the first quarter of 197 kThe surplus on goods and services also increased to $4.2 billion, while the current account balance improved to asurplus of $1.1 billion.


IMPORTS OF GOODS AND SERVICES

30

20

40

30

20

1965 1971

SOURCE! DEPARTMENT OF CO/AMERCE COUNCIL OF ECONOMIC ADVISERS


Period

196519661967196819691970

1969: I I I___IV....

1970: III....III_.._IV....

1971: I

Me]

Ex-ports

26, 43829, 39030, 68033, 58836, 49041, 980

38, 40839, 55240, 96442, 32842, 78441, 84444, 128

rchandise

Im-ports

-21,496-25,463-26,821-32, 964-35,830-39,870

-37, 112-37, 588-38,912-39, 324-39, 968-41, 276— 43, 040

I, 2

Netbal-

ance

4,9423,9273,859

624660

2, 110

1, 2961,9642, 0523,0042,816

5681,088

Milit£

Directex-

pendi-tures

-2,952-3, 764-4, 378-4, 535-4, 856-4, 851

-4, 884-5, 004-4, 728-5, 020-4, 844-4, 812-4, 736

try trans

Sales

830829

1,2401, 3951, 5151,480

Se

1, 7681, 3441,0961, 7881, 3081,732

2, 028

actions

Netbal-ance

— 2, 122-2,935

3, 138-3, 140-3, 341-3, 371

asonally a

-3, 116-3, 660-3, 632-3,232-3,536-3,080

-2, 708

Netiiment i

Pri-vate 3

5, 2745, 3315, 8486, 1575, 8206, 360

d justed

5,7165, 6726, 1845,8886,5406, 8287, 336

ivest-ncome

U.S.Gov-ern-ment

20444063

155— 118

annual r

180136124

-12-256-324

-428

Nettraveland

trans-porta-tion

expend-itures

-1, 319- 1, 382— 1, 752- 1, 558-1,780- 1, 979

ates

- 1, 748- 1, 892-1, 792-2,000-2, 212-1, 912-1,936

Otherserv-ices,net

333315365344497588

504456588532628600852

Bal-anceon

goodsandserv-ices *

7, 1305,3005, 2202,4892, Oil3, 592

2,8322,676

3,5244, 1803, 9802,680

4,204

Re-mi t-

tanceSjpen-sions,and

otheruni-

lateraltrans-fers l

-2, 835-2,890-3, 081-2,875-2, 910-3, 148

-2,772-2, 996-3,024-3, 012-3, 212-3,344

-3, 132

Cur-rentac-

countbal-ance

4, 2952,4102, 139-386-899

444

60-320

5001, 168

768-6641,072

1 Excludes military grants.s Adjusted from Census data for differences in timing and coverage.8 Includes fees and royalties from U.S. direct investments abroad or from

foreign direct investments in the United States.

NOTE.—Reflects revised balance of payments presentation discussed in Sur-vey of Current Business, June 1971.


24


.S. OVERALL BALANCES ON INTERNATIONAL TRANSACTIONS'n the first quarter, there were balance of payments deficits of $5.7 billion on current account and long-term capital/$10.4 billion on the net liquidity basis, and $22.1 billion on the official reserve transaction basis (all seasonallyadjusted annual rates).


BALANCE ON OFFICIALRESERVE TRANSACTIONS

BALANCE ONCURRENT ACCOUNT

AND LONG-TERMCAPITAL

-251965 1966 1967

NOTE: BEGINNING 1970 INCLUDES ALLOCATIONS OF SPECIAL DRAWING RIGHTS.

SOURCE DEPARTMENT OF COMMERCE COUNCIL OF ECONOMIC ADVISERS


Period

196519661967196819691970

1969: III...IV, _ _

1970: IIII I I___IV...

1971: I"

Long-terflows

U.S.Govern-ment l

— 1, 532- 1, 469-2,424-2, 162-1,930-2, 029

-2, 816-820

-1,812-2, 360- 1, 248-2, 692-2;748

m capital, net

Private 2

-4,577-2,555-2,912

1, 198-50

-1,453

- 1, 5242,564

-3,876- 1, 088

-88028

— 3, 988

Balance

currentaccount

and long-

capital

-1, 814-1, 614-3, 196-1,349-2,879-3, 038

-4,2801,424

-5, 188- 2, 280- 1, 360- 3, 328- 5, 664

Non-liquidshort-term

privatecapitalflowsnet2

-171-102-505

231-602-548

S<

-840— 108-428-656-484— 624-400

Allo-fot

specialdraw-

ingrights

867

^asonally

868868868864720

Errorsandomis-

sions,net

-507-431-985-493

-2, 603-1, 132

adjusted

-2;868-664-248

- 1, 720- 1, 732

-828- 5, 072

Balance,net

liquid-ity

basis

-2,493-2, 148-4, 685-1, 610-6, 084-3, 852

annual 12

-7,984652

-5,000-3, 780-2, 716- 3, 908

-10,416

Liquidprivatecapitalflows,net2

1, 2042, 3671, 2673, 2518,786

-5,969

ites

5,268884

-6,460- 1, 828-5, 592-9,996

-11, 676

Balance,officialreservetrans-actionsbasis

- 1, 289219

-3,4181, 6412,702

-9,821

-2,7161, 536

-11,460-5, 608— 8, 308

-13, 904— 22, 092

Changesin lia-bilities

toforeignofficial

agencies,net3

67-7873,366-761

-1,5157, 344

5,460-920

10, 4042,3885,972

10, 60819, 364

Changesin U.S.officialreserveassets,net4

1, 22256852

-880- 1, 187

2,477

-2,744-6161,0563, 2202, 3363,2962,728

U.S.officialreserveassets,

net(end ofperiod)

15, 45014, 88214, 83015, 710

5 16, 96414, 487

unad-justed

16, 74316, 96417, 35016, 32815, 52714, 487

8 14, 342

1 Excludes liabilities to foreign official reserve agencies.2 Private foreigners exclude the IMF, but include other international and

regional organizations.3 Includes liabilities to foreign official agencies reported by U.S. GovernmentInd U.S. banks and U.S. liabilities to the IMF arising from"reversible gold sales,o, and gold deposits with, the United States.

* Official reserve assets include gold, special drawing rights, convertible cur-rencies, and the U.S. gold tranche position in the IMF.

* Includes gain of $67 million resulting from revaluation of the German markin October 1969.

•On March 31, U.S. reserve assets consisted of gold stock, $10,963 million,special drawing rights, $1,443 million; convertible currencies, $256 million; goldtranche position, $1,680 million.

NOTE.—Reflects revised balance of payments presentation discussed in Surveyo/ Current Business, June 1971.

Sources: Treasury Department and Department of Commerce.

25


PRICESCONSUMER PRICESIn May, the consumer price index rose 0.5 percent/ on a seasonally adjusted basis the rise was 0.6 percent. Foodprices were up 0.3 percent, while nonfood commodities rose 0.7 percent. Charges for consumer services rose 0.6 percent,the largest rise since January of this year.

Index, 1967 = 100 Index, 1967=100

110

100 100

901965 1966


1971


[1967 = 100]

Period

196119621963 _ _19641965196619671968196919701970: Apr

May _ _ _JuneJulyAugSeptOctNovDec _ _

1971: JanFeb _ __Mar _AprMay__ _ _

Allitems

89. 690. 691. 792. 994. 597. 2

100. 0104. 2109. 8116. 3115. 2115. 7116. 3116. 7116. 9117. 5118. 1118. 5119. 1119. 2119.4119. 8120. 2120. 8

All com-modities

92. 092. 893. 694. 695.798. 2

100. 0103. 7108. 4113. 5112. 6113. 1113. 5113. 8113.8114. 2114. 8115. 1115. 6115. 4115. 5116. 1116. 6117. 2

Co

Food

89. 189. 991. 292. 494. 499. 1

100. 0103. 6108. 9114. 9114. 6114.9115. 2115. 8115. 9115. 7115. 5114.9115.3115. 5115. 9117. 0117. 8118. 2

mmoditieCom IT

All

93. 494. 194.895. 696.297. 5

100. 0103. 7108. 1112. 5111. 4112. 0112. 5112. 5112.6113. 4114. 5115. 1115.5115. 2115. 2115. 5115. 8116.6

s

lodities les

Durable

96. 697. 697. 998.898. 498. 5

100. 0103. 1107. 0111. 8110. 1111. 1111. 9112. 1112. 2112. 5113. 9114. 7115. 2115. 2115. 0115. 2115. 7116. 6

5S food

Non-durable

91. 291. 892.793.594. 897. 0

100. 0104. 1108. 8113. 1112. 3112. 7112. 9113. 0113. 0114. 1114. 9115. 4115.7115. 3115. 4115. 7116.0116. 6

Allservices

85.286. 888.590.292. 295. 8

100. 0105. 2112. 5121. 6120. 1120. 7121.4122. 0122. 7123. 5124. 1124.9125.6126. 3126. 6126. 6126. 8127. 5

Services

Rent

92. 994. 095. 095. 996.998. 2

100. 0102. 4105. 7110. 1109. 1109. 4109. 8110. 1110. 5110. 9111. 4111. 8112. 6112. 9113. 6113. 9114. 4114.7

Servicesiecsrent

83. 985. 587. 389. 291. 595. 3

100. 0105. 7113. 8123. 7122. 1122. 8123. 5124. 2124. 9125. 8126. 5127. 3128. 0128. 7129. 0128. 9129. 1129. 8

Source: Department of Labor.

26


7HOLESALE PRICESThe wholesale price index rose 0.4 percent in June/ seasonally adjusted the increase was also 0.4 percent. Industrialprices advanced 0.2 percent. Farm products rose 1.8 percent and processed foods and feeds, 0.3 percent.

Index, 1967=100 Index, 1967=100

95 95

1965 1971

SOURCE: DEPARTMENT OF LABC COUNCIL OF ECONOMIC ADVISERS

[1967=100]

Period

1961196219631964196519661967.1968196919701970: May

June__JuivAuo;_SeptOctNov _ _Dec_ _ _ _ _ _

1971: JanFebMarAprMav _June _

1 Coverage of the subgroups does not correspondex.b Excludes intermediate materials for food mamlimal feeds; includes, in part, grain product, for fi

Allcom-modi-ties

94. 594. 894. 594. 796. 699. 8

100. 0102. 5106.5110. 4110. 1110. 3110. 9110. 5111. 0111. 0110. 9111. 0111. 8112. 8113.0113. 3113. 8114. 3

d exactly to

ifacturing anirther proces

Farmprod-ucts

96.398.096.094. 698. 7

105. 9100. 0102.5108. 8111. 0111. 3111. 6113. 4108.5112. 1107. 8107. 0107. 1108. 9113. 9113. 0113. 0114. 0116. 0

coverage of

d manufacttsing.

Proc-essedfoodsand

feeds

91. 091. 992. 592. 395. 5

101. 2100. 0102. 2107. 3112. 0111. 1111. 7113. 3112. 9113. 0111. 8111. 7110. 7111.8113. 3113. 7113. 5114. 5114. 9

this Ncreflec

lred So,

All in-dustri-als1

94.894.894. 795. 296. 498. 5

100. 0102. 5106. 0110. 0109.7109. 8110. 0110. 2110. 4111. 3111. 3111. 7112. 2112. 5112.8113. 3113. 7113. 9

)TE.— Beginn,ting 1963 vajrce: Depart

Ir

Crudemate-rials

97. 295. 694. 397. 1

100. 9104. 5100. 0102. 0110. 5118. 8120. 0119. 5118. 0117. 2118. 7120.6118.2119.8121. 4121. 8121. 4124. 1123. 5122.8

ing 1967, thewes of shipnment of Lab

tdustrial c

Inter-mediatemate-rials 2

95. 595. 395. 095. 696. 998. 9

100. 0102.6106. 2110.0109. 9110. 1110. 3110. 5110. 7111. 0111. 0111. 0111. 5112. 0112. 7113.3113.8114. 1

indexes incolents. The clor.

ommoditi

Produc-er fin-ishedgoods

91. 892. 292. 493. 394. 496. 8

100. 0103. 5106. 9111. 9111. 1111. 3111. 6111. 9112. 3113. 8114. 2115. 1115. 6115. 9116. 0116. 1116. 3116. 5

rporate a reiassification E

es

Consunished gccludin

Dur-able98. 898. 397.898. 297. 998.5

100.0102. 2104. 0107. 1106. 2106. 3106.5106.5106. 6109. 7109. 9109. 9110. 5110. 8110. 4110. 5110. 7110.7

rised weight!tructure alsc

ier fin->ods ex-g food

Non-durable

94. 794, 895. 194. 895. 997. 8

100.0102. 2104. 8108. 2107. 8108. 1108. 2108. 6109. 0109.2109. 5110. 4110. 9110. 8110.7110. 5111.0111. 2

ng structure> changed.


PRICES RECEIVED AND PAID BY FARMERSIn the month ended June 1 5, both prices received and prices paid by farmers were unchanged. The actual parity ratiowas unchanged and the adjusted ratio rose 1 point.

1967

130

19ft

110

100

on

80

RA190

80

70

60

= 100

Z±l! . , . , , ,

r|0J/

y~s/<^*^

_j_i r i j 1 i . , i .

1965

-I/RATIO OF INDEX OF PRICE

SOURCE, DEPARTMENT OF AC

/^-/"X

/S <—!,

1966

5 RECEIVED TO IW)EX OF PR 1C

SRJCUITURE

PRINTERES

W>

-^ "

•*«,Xx-x-v*

1967

:ES PAID, INTEREST, TAXES, /

CES PAID,

T, TAXES, ANDM3E RATES •

Ji. cq

— PARITY RATIO —

..<..„ A<»*\v**w"»«,MMM^Mi' '»«,»„„

1968

TOWAGE RATES, ON 1910-14 =

-sf**v^

— \ PRICES RECEIVE

(ALL FARM PRODU

.^.^•••>^™

1969

» 100 BASE.

•1

^^\.

D

as)

i * t f i i i * i i i

'"\--'\....\

1970

cou

1967 =

S»'

r—

1 1 . f L. 1 t 1 l 1 1 1

RATI

/ ^

1 f I 1 1 I i 1 1 ±_L

1971

NCIL OF ECONOMIC ADVISER,

= 100

130

120

no

100

90

80

D-!/

90

80

70

60

>

Period

1961196219631964__1965- _ _ .1966.19671968196919701970: May 15

June 15July 15Aug 15Sept 15__Oct 15Nov 15Dec 15

1971: Jan 15Feb 15 .__Mar 15.Apr 15May 15...June 15..

Prices i

All farmproducts

9496969398

105100103108110110110112109110108106104

106112111111113113

•eceived by i

Crops

10010310610610310510010197

10010010110310010410210299

102105107108111114

armers

Livestockand

products

Index, 19192898594

105100104116118

117117119115116113109108110117114114114113

Prices

All items,interest,

taxes, andwage rates

967=100889091929498

100104109114

114114114114115115115116117118118119120120

paid by far

Familylivingitems

909192939598

100104109114

113114114114115115115116116117117117118119

mers

Produc-tion

items

939495949699

100102106110

109109109109111111111112112113114115115116

Parity

Actual

79807876778074737472

7272737171706866687070697070

ratio l

Adjusted 2

83838180828679797977

7777797677757472

727574747475

_ i Percentage ratio of index of prices received by fanners to index of prices paid,interest, taxes, and wage rates on 1910-14=100 base.

28

2 The adjusted parity ratio reflects Government payments made direct!1

armers.Source: Department of Agriculture.


MONEY, CREDIT, AND SECURITY MARKETSMONEY STOCKThe money stock grew crt a seasonally adjusted annual rate of 10.5 percent in the first 6 months of 1971. In the last1 2 months the money stock grew 7.6 percent.

BILLIONS OF DOLLARS BILLIONS OF DOLLARS300

250

150

100 1001965 1971

SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM COUNCIL OF ECONOMIC ADVISERS

[Averages of daily figures, billions of dollars]

Period

1965: Dec1966: Dec1967: Dec1968: Dec1969: Dec1970: Dec1970: May_ __ __

June_JulyAug_ _SeptOct _ __ ___ _ __NovDec _

1971: Jan _ __FebMar__Apr_May__ _ _June p-

IV

Total

168.0171.7183. 1197.4203. 6214. 6209. 2209. 6210. 6211. 8212. 8213. 0213. 5214. 6214. 8217. 3219.4221. 1223. 9225. 6

[oney sto<Cur-rencyout-

• Jsidebanks

Seasonally36. 338. 340. 443. 446. 048. 947. 747. 848. 148. 248. 248. 548.748. 949. 249. 650.050. 550.951. 2

3k

De-mand

de-posits

r adjusteo131. 7133. 4142. 7154. 0157. 7165. 7161. 6161. 9162. 5163. 7164. 6164. 5164. 8165. 7165.5167.7169.4170. 5173.0174. 4

Timede-

posits 1

146. 8158. 3183. 5204. 8194. 6230.4200. 3202. 2208. 2213. 2218. 5222. 2225. 0230. 4235. 3240. 9246. 1248. 3251. 4254. 4

IV

Total

173. 1176. 9188. 6203. 4209. 8221. 1205. 3207.8209. 0208.7211. 4213. 0215. 3221. 1221. 3215. 5217.4222. 2219.7223. 6

loney sto<

Cur-rencyout-side

banks1

37. 139. 141. 244. 346.950.047. 347. 748. 348. 348. 248. 549.250.049. 149. 249. 550. 150. 551.1

3k

De-mand

de-posits

Jnadjuste136. 0137.8147. 4159. 1162. 9171. 1158. 0160. 1160. 7160. 4163. 1164. 5166. 1171. 1172. 1166.3167.8172. 1169. 2172. 5

Timede-

posits l

d145. 2156. 9182. 1203. 2193.2228.7201. 1202. 3208. 1214. 0218.4222. 5224. 6228. 72345240. 3246. 9249. 2252. 1254. 4

U.S.Gov-ern-ment

demandde-

posits l

4. 63. 45. 05. 05.67. 16.46. 56. 87. 16. 86. 15. 67. 16. 68. 35. 4f>. 57.85. 4

1 Deposits at all commercial banks.NOTE.—Effective June 9, 1966, balances accumulated for payment of personal

oans (about $1.1 billion) are excluded from time deposits and from loans at allcommercial banks.

Source: Board of Governors of the Federal Keservc System.

29


SELECTED LIQUID ASSETS HELD BY THE PUBLICPublic holdings of selected liquid assets increased $1 2% billion (seasonally adjusted) in June. All types of assetscontributed to the rise with demand deposits and currency accounting for nearly half.


750

650

550

450

350

250

150

SEASONALLY ADJUSTED, END OF MONTH


TOTAL SELECTEDLIQUID ASSETS

1965

SAVING TYPEASSETSJ/

\--r--

DEMAND DEPOSITS ANDCURRENCY

1966

.•.•.••I"""""""

1967 1968

iiniiniii"*******'*-*"****"*"**'1***'"1"""

1969

i i II f i i i i M.

VASSETS OTHER THAN DEMAND DEPOSITS AND CURRENCY.

SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

1970

750

650

550

450

350

250

1501971


[Billions of dollars, seasonally adjusted]

End of period

19641965196619671968196919701970: May___ _ _

JuneJulyAugSeptOctNovDec

1971: Jan . __Feb _MarAprMay *June p

Totalselectedliquidassets

530. 5573.1601.5650.4709.6731.8786. 4734. 1738.7749. 9751. 1765.6764.9774. 1786.4

789. 2796. 9816. 1815. 7824. 7837. 3

Demanddeposits

andcurrency 1

156.7164. 1168. 6180. 7

3 199. 2206. 8207. 6197. 9199. 8198.7199. 3203. 6199.8201. 5207.6202. 9204.6211, 6206. 2212. 2218. 1

Time d

Com-mercialbanks

127. 1147. 1159.3183. 1203. 8197. 1234 8201. 7202. 9211. 8215.4221. 5224.6230.4234. 8240. 0244. 5249. 5250. 2252. 3254.5

eposits

Mutualsavingsbanks

49. 052.655.260.364. V67. 371.568. 468. 769.269. 469. 970.470.971.572. 273. 574. 775. 976. 877. 3

PostalSavingsSystem

0.4.3. 1

Savingsand loandeposits

andshares

101.4109.8113.4123. 9131.0135.0146. 0137.0137.6139.2140. 3142.4143. 5144. 8146. 0148. 7151. 6155. 7158.4160. 2161.8

U.S. Gov-ernmentsavingsbonds 2

49. 950.550. 951. 952.552.452. 752. 052. 052.452. 052. 152. 152.252. 752. 852.853. 053. 253.453. 6

U Q p~,7

ernmentsecuritiesmaturing

withinone

year-

46. 148.653.950. 558.573.273.877. 277. 778. 574. 676. 074. 574. 373.8

72. 670. 071. 671. 869.772. 0

NOTE.—See Note, p. 29.Source: Board of Governors of the Federal Keserve System.


LOANS, INVESTMENTS, DEBITS, AND RESERVESTotal bank credit (seasonally adjusted) increased $3.7 billion in June, following the $4.2 billion increase in May.Free reserves decreased sharply in June.


400

300

200

100

ALL COMMERCIAL BANKS SEASONALLY ADJUSTED, END OF MONTH

TOTALLOANS AND INVESTMENTS

I ! I I I I ! I I I I

1965

INVESTMENTS IN"U.S. GOVERNMENT SECURITIES '

INVESTMENTS IN OTHER SECURITIES

I I 1 I I I I I 1 I I t I I I I I I I I I ! I 1 I I 1 1 I M I t

1966 1967 1968

I I ! I I I ! I 1 I I

1969

t I i i I I I I I I1970


400

300

200

100

i r i t i I t t t f

*SEE FOOTNOTE 4 BELOWSOURCE; BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

1971


End of period

19651966196719681969 *1970 »1970: May

JuneJulyAugSeptOctNovDec

1971: Jan *>Feb »Mar *_Apr v

May *__June v

1 Debits during periodU.S. Government. New £

1 Averages of daily figui8 New series; see Federa4 New series beginning

* As of June 1971, Farmcsecurities" rather than asbillion.

(s

Totalloansand

invest-ments

294.4310. 5346. 5384.6401. 3435. 1405. 9406. 4412. 8418. 3423. 7424. 4428.2435. 143& 9444. 6448. 6448.8453. 0456.7

to demanceries beginnes. Annual c

I Reserve BuJune 1969; s<jrs Home Ac'loans." Th(

All comneasonally

Loans,excluding

inter-bank

192.6208.2225. 4251.627a 1290. 5278.0277.4281.5284. 1287. 3287. 3288.4290.5292. 0295. 2295.2294. 9297. 9

5 297. 4deposit ace

ng Januarylata are for Eletin, March36 Federal Reministration

5 amount tra

lercial bankadjusted da

Investr

U.S. Gov-ernmentsecurities

Billions57. 153.659.761.551. 958.553. 454. 155. 857. 557. 656. 356. 758. 558.759. 961. 460. 260. 263. 0

ounts except i1964.>ecember.1967.serve Bulletin, 1notes are classi

isferred for Jun

Sta)

nents

Othersecuri-

ties

of dollars44.848. 761. 471.571. 386. 074. 575. 075. 576.778. 880. 883. 186. 088. 289.692. 093.794. 9

6 96. 3ntcrbank an

lugust 1969.fled as "otheB is about $0.

Weeklyreporting

large com-mercialbanks

Co mmerclaland indus-trial loans

S53. 160.765. 873.181. 581.777.979. 679. 379.281. 280. 079. 981. 780. 180. 881. 281. 281.682. 5

d NOTE. —loans (abocertain cerincluded ii

r Source:7

Bank_i i_ •j.-debitsoutside

New YorkCity (232centers) ,

seasonallyadjustedannualrates *

3,0183,421s, 7404,8545,1635,7445,7665,7705,8845,7805,8845, 8805,7105,8805,8846,0586,1846, 8226,249

Effective Juneut $1.1 billion) ztificates of CCCi other securitiesBoard of Goverr

A

Totalreserves

22, 71923, 83025, 26027, 22128, 03129, 26527, 91027, 56728, 12828, 34928, 82528, 70128, 55829, 26530, 48829, 88029, 68629, 88530, 41930, 005

1966, balances aire excluded froiand Export-Imrather than in klors of the Fedei

dl membe

Excessreserves

Millions o452392345455257272181187141145272254120272279201199140312112

ccumulatedtn loans at aport Bank to>ans.•al Reserve S

r banks 2

Borrow—ings atFederalReserveBanks

f dollars454557238765

1,086321976888

1,358827607462425321370328319148330453

for paymentI commereiaBaling about

ystem.

Freereserves

— 2-165

107-310-829-49

-795-701

-1,217-682— 335-208-305-49-91

-127— 120

-8-18

-341ol personalbanks, and

51 billion are

31


CONSUMER AND REAL ESTATE CREDITTotal consumer credit outstanding increased $978 million in May. A year earlier the increase was $944 million.Seasonally adjusted instalment credit outstanding rose $493 million in May, down from a $663 million increasein April.


120

100

80

20

END OF MONTH


TOTAL CONSUMER CREDIT OUTSTANDING

...........«»•'

i t I f I I I t I ! t f I T 1 I I ! I I I

INSTALMENT CREDIT

NONINSTALMENT CREDIT\ »*••*•,.»••»»»»""

t t \ f i I t t I i 11

120

100

80

60

20

1965

SOURCE: BOARD Of GOVERNORS OF THE FEDERAL RESERVE SYSTEM COUNCIL OF ECONOMIC ADVISERS


Period

19621963196419651966__ _19671968196919701970: Apr

May. _ _ _JuneJulyAug_.__ _SeptOct__ _ _ _NovDec

1971: JanFebMarAprMay _ _

1 Also includes otheloans, not shown sepal2 Consists of single-p

-End of period, una

Consu

Total

63, 82171, 73980, 26890, 31497, 543

102, 132113, 191122, 469126, 802120, 402121, 346122, 542123, 092123, 655123, 907123, 866123, 915126, 802

125, 077123, 815123, 604125, 047126, 025

r consumer g•ately.ayment loans,djusted.

mer crediti

Total J

48, 72055, 48662, 69271, 32477, 53980, 92689, 89098, 169

101, 16197, 10497, 70G98, 69999, 30299, 860

100, 14299, 95999, 790

101, 161

100, 10199, 24499, 168

100, 028100, 692

rods paper, a]

charge accoui

outstandinmadjusted)Instalment

A 4- f^

bilepaper

19, 38122, 25424, 93428, 61930, 55630, 72434, 13036, 60235, 49036, 26436, 45536, 80936, 91836, 90836, 73836, 51836, Oil35, 490

35, 00434, 86935, 02835, 49635, 819

ad repair and

its, and servic

g (end of F

Personalloans

13, 41415, 61817, 84820, 41222, 18724, 01826, 93629, 91831, 61230, 03030, 19330, 54730, 76531, 04731, 22631, 16331, 26831, 612

31, 45531, 39631, 50431, 77332, 041

modernizatio

e credit.

eriod;

Non-instal-ment 2

15, 10116, 25317, 57618, 99020, 00421, 20623, 30124, 30025, 64123, 29823, 64023, 84323, 79023, 79523, 76523, 90724, 12525, 641

24, 97624, 57124, 43625, 01925, 333

D Source,Loan Ba

Consumand r

To

Extended

56, 19163, 59170, 67078, 58682, 33584, 69397, 053

102, 888104, 130

8,4919, 0048,6839, 0658,8098, 8498, 5808,4148, 536

8, 9169, 0819, 5339, 7519, 696

s: Board of Gonk Board.

er instalmespaid (seastal

Repaid

51, 36056, 82563, 47069, 95776, 12081, 30688, 08994, 609

101, 1388., 1958, 5898, 2428, 6228,5778, 4908, 6628, 7168, 515

8,8298, 9799,0389,0889,203

vernors of the

nt credit eon ally adju

Automob

Extended

19, 69422, 12624, 04627, 22727, 34126, 66731, 42432, 35429, 831

2, 5712, 5952, 5872, 6852,5372, 6212,3492, 1272, 170

2,4612, 6872,8972,8722,762

Federal Resen

xtendedsted)ile paper

Repaid

17, 44719, 25421, 36923, 54325, 40426, 49928, 01829, 88230, 943

2, 5272, 6002, 5732,7522,6322,5992, 5502,5772,618

2, 6232, 6362,6962, 5662,646

re System and

Mortgagedebt out-standingnonfarm.1- to 4-f amil v

houses 3

166, 500182, 200197, 600212, 900223, 600236, 100251, 200266, 800279, 700

271, 700

275, 800

279, 700

282, 700

Federal Horn!


OND YIELDS AND INTEREST RATESircasury bill rates rose throughout June and the first part of July. Long-term rates increased slightly in June, leveled offin early July, and declined in mid-July.

PERCENT PER ANNUM PERCENT PER ANNUM10

CORPORATE Aaa BONDS(MOODY'S)

TAXABLE GOVERNMENTBONDS

1965 1971

SOURCE: SEE TABLE BELOW COUNCIL OF ECONOMIC ADVISERS

Period

1963196419651966___1967__1968_1969 _ _1970 _1970: May

JuneJulyAug _SeptOctNovDec __ . _

1971: JanFebMar _ _ _Apr_ _MavJune _

Week ended:1971: June !!.__

18_._2 5 _ _ _

July 2 _ _ _9

1 6 _ _ _2 3 6 _ _

U.S. Gove

3-monthTreasury

bills l

3. 1573. 5493. 9544. 8814.3215.3396.6776. 4587. 0356. 7426. 4686. 4126. 2445. 9275. 2884. 8604. 4943. 7733. 3233. 7804. 1394. 699

4.5104.9894,9535. 0805. 4675. 3765. 546

jrnment secu]

3-5 yearissues 2

3.724.064. 225. 165.075.596. 857. 377. 977. 867. 587. 567. 247. 066. 375. 865. 725. 314. 745. 426.026. 36

6. 226. 546. 466. 706. 706. 64

[Percentrity yields

Taxablebonds 3

4.004. 154.214. 654. 855.26a 126. 586. 946.996. 576. 756.636. 596. 245. 975.925. 845. 715.755. 965. 94

5.896. 065. 985. 975. 925.82

per annum]High-grademunicipal

bonds(Standard &

Poor's) 4

3.233.223.273. 823. 984.515. 816. 517. 027. 066. 696. 336. 456. 556. 205. 715. 705. 555.445. 656. 146. 22

6. 116. 246. 356. 396. 386. 32

Corpora(Moc

Aaa

4. 264.404. 495. 135. 516.187.038. 048. 118. 488. 448. 138. 098.038. 057. 647. 367. 087. 217. 257. 537. 64

7. 667. 637.627. 637. 657. 64

1

te bondsdy's)

Baa

4.864. 834.875. 676.236.947. 819. 118. 989. 259. 409. 449. 399. 339. 389. 128. 748. 398.468.458. 628. 75

8.738. 778. 788. 788. 758. 77

Primecommercial

paper,4-6

months3. 553. 974.385.555.105.907.837.72a 238. 218. 297.907. 326.856. 305. 735. 114. 474. 194.575. 105. 45

5.385. 485. 505. 655.755. 75

FHAnew homemortgageyields 5

5.475.455.466.296. 557.138. 199.059. 109. 119. 169. 119. 079. 018. 97a 90a 40

7. 327.377.75

3ate on new issues within period. 2 Selected note and bond issues.April 1953 to date, bonds due or callable 10 years and after.

* Weekly data are Wednesday figures. fl Not charted.5 Data for first of the month, based on the maximum permissible interest rate

(7 percent beginning February 17, 1971) and 30-year mortgages paid in 15 years.

Sources: Treasury Department, Board of Governors of the Federal ReserveSystem, Federal Housing Administration, Standard & Poor's Corporation, andMoody's Investors Service.


COMMON STOCK PRICES, YIELD, AND EARNINGSCommon stock prices declined again in June.

Index, 1941-43 = 10

120

COMPOSITE PRICE INDEX FOR500 COMMON STOCKS

PRICE/EARNINGS RATIO ON COMMON STOCKS

1966 1967 1968 1969 1970 1971

SOURCE: STAN AHD & POOR'S CORF COUNCIL OF ECONOMIC ADVISERS

Period

1965.196619671968196919701970: June

JulyAug_ _ _ _ _ _ _SeptOctNov_ _ _ _ _Dec

1971: JanFebMarApr_ _ _May _June _ _

Week ended:1971: June 11

1825

July 29

164 _

Total

88.1785.2691. 9398.7097. 8483. 2275. 5975. 7277. 9282. 5884. 3784. 2890. 0593. 4997. 1199. 60

103. 04101. 6499.72

100. 69100. 1198. 0199. 16

100. 2199.59

Total

93.4891.0899. 18

107. 49107. 1391. 2982. 9683. 0085. 4090. 6692. 8592. 589a 72

102. 22106. 62109. 59113. 68112.41110. 26

111. 46110. 75108. 26109. 37110. 47109. 71

Price ]Industrials

Capitalgoods

1941—85. 2684.8696. 96

105. 77103. 7587. 8780. 7777. 9978. 3884. 9687. 9086.4792. 1295. 97

101. 58104. 69109. 38108. 61105. 46

105. 52105. 92103. 66105. 26104. 91102. 50

ndex 1

Consumers'goods

43=1081. 9474. 1079. 1886.3387. 0680. 2273. 1073. 1074. 7679. 6582. 1283. 0988. 6991. 7295. 3898. 54

102. 41101. 96100. 96

101. 72101. 4299.57

100. 21101. 25100. 56

Publicutilities

76.0868.2168. 1066.4262. 6454, 4849. 2250.9152. 6254. 4453. 3754. 8659. 9663. 4362. 4962. 4262. 0659. 2057. 90

57. 6257. 6457. 6259. 5060. 5360. 59

Railroads

46.7846. 3446. 7248.8445. 9532. 1328. 9426. 5926. 7429. 1431. 7330. 8032. 9536. 6438. 7839.7042. 2942. 0542. 12

42. 4642. 4041. 5641. 8642. 3042.39

Dividendyield 2

(percent)

3.003. 403.203.073. 243.834. 174. 204. 073. 823. 743. 723. 463. 323. 183. 102. 993. 043. 10

3. 093. 083. 143. 103. 093. 12

Price/earningsratio 3

17. 0814. 9217. 5217. 2016. 5715. 9113. 33

15. 77

17. 22

18. 11

industrials, 55 public utilities, and 20 rail- are averages ol monthly data. Weekly data are Wednesday figures,id consumer goods are Wednesday figures; a Ratio of price index for last day in quarter to quarterly earnings (seasonallys of daily figures. * % , . . . • , . , , _ adjusted annual rate). Annual ratios are averages of quarterly data.on latest known annual rate) divided by < Not charted

1 Includes 500 common stocks: 425 uroads. Weekly indexes for capital and consumer goo<all other weekly indexes are averages of daily figures.

2 Aggregate cash dividends (based on latest known annual rate) divided bythe aggregate monthly market value of the stocks in the group. Annual yields

34

4 Not charted.Source: Standr.rd & Poor's Corporation.


FEDERAL FINANCEFEDERAL BUDGET RECEIPTS, EXPENDITURES, AND NET LENDINGIn the first 11 months of fiscal year 1971, there was a deficit of $25.6 billion/ for the corresponding period of fiscal1970 there was a deficit of $10.1 billion.


200

160

120

80


RECEIPTS AND OUTLAYS

OUTLAYS(EXPENDITURES ANfr NET LENDING)

RECEIPTS

_L

200

120

(ENLARGED SCALE) (ENLARGED SCALED

1961 1962 1963 1964 1965

I/ESTIMATES

SOURCES, TREASURY DtPARIMtNT AND OFFICE OF MANAGEMENT AND BUDGET

1966 1967FISCAL YEARS

1968 1969 1970 1971 J/ 1972-^


| Billions of dollars|

Period

Fiscal year:19G1 _ _ _ _ _ _J9G21963 _1964 ._. _ _

1965 _ _ _ _ _ ___1 90 (51907 _ _ _ _ _1 9681969

19701971 3

1972 3

Cumulative totals forfirst 11 months:

Fiscal Year 1970Fiscal j'car 1971

Receip

Pteceipts

94. 499. 7

106. 6112.7

116. 8130. 9149. 6153.7187. 8

193. 7194. 2217. 6

171.2165.9

.-expenditure :

Expendi-tures

!'

104- 5111. 5118. 0

117. 2130. 8153. 21 72. 8LS3. 1

194. f>211. 1228. 3 1

179.6190. 6

Budget receipt's, expenditures, and net lending

Surplus ordef ic i t ( — )

Netlendin

- 17. 0— 10. 7

-8.4 |24.8 i

- lenclh_

inunt

>ting

1. 22. 4

i'. 5

1. 2i. 85. 1G. 01. 52. 11. 0. 9

1. 7.8

ig

Totalsurplus or

deficit (-)

-3.4— 7. 1— 4.8-5.9

— 1.6-3.8-8. 7

-25.23.2

-2.8-18. 6— 11. 6

-10. 1-25. 6

Gross Fed(end of

Total1

292.9303. 3310.8316.8

323.2329. 5341.3369. 8367. 1

382. 6407. 0429. 4

382. 9408. 7

.era! debtperiod)

Held bythe public

238.6248.4254. 5257.6261. 6264.7267.5290. 6279. 5284.9302. 5313. 1

2S8. 0304. 6

1 Excludes non-interest-bearing public debt securiti2 Surplus of $36 million.^ Estimates as of January 1971.

Ities held by IMF. Sources: Treasury Department and Office of Management and Budget.

35


FEDERAL BUDGET RECEIPTS BY SOURCE ANDOUTLAYS BY FUNCTIONIn the first 11 months of fiscal year 1971, receipts were $5.3 billion below a year earlier while outlays were $10.2billion higher.

BILLIONS OF DOLLARS BILLIONS OF DOLLARS120

- 100

180

140 -

100 -

80

60 -

40

OUTLAYS(EXPENDITURES AND NET LENDING)

,---""NONDEFENSE ....— — """ *"*

- ~^^

^ — — *"" ^^^\^

A ~~ "l I I I I I ! I I ! I ^1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 ^ 1972

T/EST.MATES FISCAL YEARS

1HO

160

140

100

80

rfO

40

SOURCES. TREASURY DEPARTMENT AND OFFICE OF MANAGEMENT AND BUDGET COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars]Receipts Outlays

Period

Fiscal year:19611962196319641965196619671968196919701971 2

19722

Cumulative totals forfirst 11 months:

Fiscal year 1970___Fiscal year 1971___

Total

94,499. 7

106.6112.7116. 8130. 9149. 6153. 7187. 8193.7194.2217.6

171. 2165.9

Individualincometaxes

41. 345. 647. 648. 748. 855. 461. 568. 787. 290.488. 393. 7

81. 176.4

Corpo-rationincometaxes

21. 020. 521. 623. 525. 530. 134. 028. 736. 732. 830. 136.7

25. 520. 3

Other

32. 133. 637. 440. 542. 645. 354. 156. 363.970. 575. 887. 2

64. 669. 2

Total

97. 8106. 8111. 3118. 6118. 4134. 7158. 3178.8184.5196.6212. 8229. 2

181. 3191. 5

Natio

Total

47. 451. 152. 353.649. 656. 870. 180. 581.280. 376. 477. 5

73.469.5

nal defense

Depart-ment ofDefense,military 1

43.346. 948. 149. 646. 054. 267. 577.477. 977.273.475. 0

70. 667. 0

Interna-tionalaffairsand

3.44.54. 14. 14. 34. 54. 54. 63. 83. 63.64. 0

3. 32.9

Healthand

incomesecurity

22. 123.725. 526. 827. 431. 637. 943. 849. 456.870. 576. 7

51. 562. 6

In-terest

8. 18.39.29.8

10. 411.312.613.715. 818.319.419. 7

16. 718. 0

Other

16. 819. 220.224. 226. 730.533.236. 234. 337.642. 851. 3

36. 438.4

1 Expenditure account.2Estimates as of January 1971.

Sources: Treasury Department and Office of Management and Budget.

36


EDERAL SECTOR, NATIONAL INCOME ACCOUNTS BASISAccording to revised estimates, Federal receipts rose $8 billion (seasonally adjusted annual rate) in the first quarter

d expenditures rose $3% billion, yielding a deficit of $16 billion or about $4% billion less than in the fourthanquarter.



1001^

+20

-70

SURPLUS

n PI

"DEFICIT! ! I

1965

I/PRELIMINARY

r~» miva

I 1 !

1966

i i 1 iI ! 1

1967

i i ™! 1 1

1968CALENDAR YEARS

jjj JJ p! m

I I 11969

^11t ! 1

1970

%%1

! ! 11971

100

+20

-20


[Billions of dollars, quarterly data at seasonally adjusted annual rates]

Period

Fiscal year:19671968196919701971

Calendaryear:1967196819691970

1970:I___II_III_iv__

1971:I_>_II*.

Total

147. 2160.8190. 1194. 5

151. 2175. 0196.9191. 5

191. 6193. 8191. 3189. 3

197. 2

Federal (

Personaltax andnontaxreceipts

64. 571.390.694.489. 1

67. 579. 794.992. 2

93. 894. 589.791. 0

87. 688.2

jovernm

Corpo-rate

profitstax

accruals

31. 233. 837. 432. 7

30. 736.736. 330.6

30. 630.931.929.0

34. 0

ent receip

Indirectbusinesstax andnontaxaccruals

15. 817. 118.519. 220. 1

16. 318. 019. 019.3

19. 019. 119. 719. 4

20. 620. 6

ts

Contri-butions

forsocial in-surance

35. 738. 543. 748. 252.7

36. 740. 746. 849. 3

48. 249. 250. 049. 8

55. 055. 8

Total

154. 5172. 3186. 2197. 0212. 5

163. 6181. 5189. 5205. 1

196. 1207. 9206. 7209. 8

213. 2220. 1

Fee

Pur-chases

of goodsand

services

85. 394. 999. 399. 296.2

90. 798. 899.297.2

100. 296. 896. 195.9

96.796. 0

leral Go1

Trans-fer pay-ments

39. 444. 850.756. 969.7

42. 248. 252. 463. 4

56. 165. 364. 667.5

69. 677. 1

/ernmen'

Grants-in-aid

to Stateandlocal

govern-ments

14.817.519. 622. 126. 7

15. 818.720. 324. 4

23. 023. 924. 925. 9

27. 328. 7

} expend]

Netinterest

paid

9.910. 912. 314. 014,3

10. 211. 713. 114. 6

14.314. 315. 014.8

14.013. 5

tures

Subsidiesless

currentsurplus

of Govt.enter-prises

5. 14.44. 35.05. 5

4. 64. 14.65. 5

5. 05. 55. 85. 7

5.74. 8

Less:Wage

accrualslessdis-

burse-ments

0.0. 0. 0.0

— . 1

. 0

.0

. 0

. 0

2. 5-2. 1_ 4

!o. 0. 0

Surplusor

deficit(-),income

andproduct

accounts

-7.2— 11. 6

4. 0-2. 5

-12. 4-6. 5

7. 3— 13. 6

-4. 5-14. 1-15. 4-20. 5

-15. 9

Source: Department of Commerce. 37


UNITED STATESGOVERNMENT PRINTING OFFICE

DIVISION OF PUBLIC DOCUMENTS

WASHINGTON, D.C. 2O4O2

POSTAGE AND FEES PAIDU.S GOVERNMENT PRINTING OFFICE

OFFICIAL BUSINESS

First-Class Mail

ContentsTOTAL OUTPUT, INCOME, AND SPENDING

The Nation's Income, Expenditure, and Saving 1Gross National Product or Expenditure 2National Income 3Sources of Personal Income 4Disposition of Personal Income 5Farm Income 6Corporate Profits 7Gross Private Domestic Investment 8Expenditures for New Plant and Equipment 9

EMPLOYMENT, UNEMPLOYMENT, AND WAGESStatus of the Labor Force 10Selected Measures of Unemployment and Part-Time Employment 11Unemployment Insurance Programs 12Nonagricultural Employment 13Weekly Hours of Work—Selected Industries 14Average Hourly and Weekly Earnings—Selected Industries 15

PRODUCTION AND BUSINESS ACTIVITYIndustrial Production 16Production of Selected Manufactures 17Weekly Indicators of Production 18New Construction 19New Housing Starts and Applications for Financing 20Business Sales and Inventories—Total and Trade 21Manufacturers' Shipments, Inventories, and New Orders 22Merchandise Exports and Imports 23U.S. Balances on Goods, Services, and Transfers 24U.S. Overall Balances on International Transactions 25

PRICESConsumer Prices 26Wholesale Prices 27Prices Received and Paid by Farmers 28

MONEY, CREDIT, AND SECURITY MARKETSMoney Supply 29Selected Liquid Assets Held by the Public 30Bank Loans, Investments, Debits, and Reserves 31Consumer and Real Estate Credit 32Bond Yields and Interest Rates 33Common Stock Prices, Yield, and Earnings 34

FEDERAL FINANCEFederal Budget Receipts, Expenditures, and Net Lending 35Federal Budget Receipts by Source and Outlays by Function 36Federal Sector, National Income Accounts Basis 37

NOTE.—Detail in these tables will not necessarily add to totals because of rounding.Unless otherwise stated, all dollar figures are in current prices.P Indicates preliminary and not available.

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402Price 25 cents per copy, $3 per year; $4 foreign. Domestic air mail, $3.60 additional per year.

38 U . S . G O V E R N M E N T P R I N T I N G O F F I C E : 1 9 7 1Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

07-1971

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