Nation's Income, Expenditure, and Saving

Name: Nation's Income, Expenditure, and Saving
Creator: FRASER
Keywords: Economic Data, Economic indicators, Economic conditions, United States

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The following is plain-text output generated by Optical Character Recognition. 87th Congress 2nd Session u s fit a Economic Indicators JULY 1962 Prepared for the Joint Economic Committee by the Council of Economic Advisers UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON JOINT ECONOMIC COMMITTEE Created pursuant to Sec 5 a of Public Law 304 79th Cong WRIGHT PATMAN Texas Chairman PAUL H DOUGLAS Illinois Vice Chairman SENATE HOUSE OF REPRESENTATIVES JOHN SPARKMAN Alabama RICHARD BOLLING Missouri J WILLIAM FULBRIGHT Arkansas HALE BOGGS Louisiana WILLIAM PROXMIRE Wisconsin HENRY S REUSS Wisconsin CLAIBORNE PELL Rhode Island MARTHA W GRIFFITHS Michigan PRESCOTT BUSH Connecticut THOMAS B CURTIS Missouri JOHN MARSHALL BUTLER Maryland CLARENCE E KILBURN New York JACOB K JAVITS New York WILLIAM B WIDNALL New Jersey WM SUMMERS JOHNSON Executive Director JOHN W LEHMAN Deputy Executive Director JOHN R STARK Clerk COUNCIL OF ECONOMIC ADVISERS WALTER W HELLER Chairman KERMIT GORDON JAMES TOBIN PUBLIC LAW 120 81sT CONGRESS CHAPTER 237 IST SESSION JOINT RESOLUTION SJ 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 Joint Economic Committee be authorized to issue a monthly publication entitled Economic Indicators and that a sufficient quantity be printed to furnish one copy to each Member of Congress the Secretary and the Sergeant at Arms of the Senate the Clerk Sergeant at Arms and Doorkeeper of the House of Representatives two copies to the libraries of the Senate and House and the Congressional Library seven hundred copies to the Joint Economic Committee and the required number of copies to the Superintendent of Documents for distribution to depository libraries and that the Superintendent of Documents be authorized to have copies printed for sale to the public Approved June Charts drawn by Graphics Unit Office of the Secretary Department of Commerce Economic Indicators published monthly is available at 20 cents a single copy or by subscription at 2 00 per year foreign 2 75 from SUPERINTENDENT OF DOCUMENTS GOVERNMENT PRINTING OFFICE WASHINGTON 25 D C Subscribers who wish to receive it at an earlier date after release may take advantage of provisions for airmail subscriptions The domestic airmail subscription price is 4 60 per year The I960 Supplement to Economic Indicators which describes each series and gives annual data for years not shown in the monthly issues is now available at 60 cents a copy ii Contents TOTAL OUTPUT INCOME AND SPENDING The Nation s Income Expenditure and Saving Gross National Product or Expenditure National Income Sources of Personal Income Disposition of Personal Income Farm Income Corporate Profits Gross Private Domestic Investment Expenditures for New Plant and Equipment Page iv EMPLOYMENT UNEMPLOYMENT AND WAGES Status of the Labor Force Unemployment Insurance Programs Nonagricultural Employment Weekly Hours of Work Average Hourly and Weekly Earnings Selected Industries PRODUCTION AND BUSINESS ACTIVITY Industrial Production Production of Selected Manufactures Weekly Indicators of Production New Construction Housing Starts and Applications for Financing Trade Sales and Inventories Manufacturers Sales Inventories and New Orders Merchandise Exports and Imports U S Balance of Payments PRICES Consumer Prices Wholesale Prices Prices Received and Paid by Farmers MONEY CREDIT AND SECURITY MARKETS Money Supply Bank Loans Investments Debits and Reserves Consumer Credit Bond Yields and Interest Rates Stock Prices FEDERAL FINANCE Budget Receipts and Expenditures Cash Receipts from and Payments to the Public NOTE Detail in these tables will not necessarily add to totals because of rounding Data for Alaska and Hawaii are not included unless specifically noted Unless otherwise stated all dollar figures are in current prices iii TOTAL OUTPUT INCOME AND SPENDING THE NATION S INCOME EXPENDITURE AND SAVING Revised estimates indicate that gross national product rose 7 billion seasonally adjusted annual rate or abouf percent in the second quarter The gain from the first quarter of 1961 was 51 billion fBiJJions of dollars quarterly data at seasonally adjusted annual rates Period Third quarter Fourth quarter 1961 First quarter Second quarter Third quarter Fourth quarter 1962 First quarter Second quarter Personal Disposable consumption personal income expenditures International Business Persons Personal Gross saving Gross private Excess of or retained domestic investearndisinvestment ings 2 saving ment W a Foreign Net exports of goods Excess of net transfers and services trans or fers by of net GovernExImNet exports ment exports ports ports I o I Government Gross Surplus Total Statis national or tical product deficit or Tax and TransPurTrans on receipts i discrep expendiancy nontax chases Total fers fers income Net ture and goods expendi interest receipts receipts interest of and or and subtures and sub product accruals sidies 6 services sidies account Net receipts Period I Third quarter Fourth quarter 1961 First quarter Second quarter Third quarter Fourth quarter 1002 First quarter 4 Second nuarter f Expenditures 18 9 IS l rannul Income p 3 less personal taxes and nontax payments fines penalUr t iti ilr l ut l corporate profits corporate inventory valuation adjustment ottrititi mt9timption allowances and excess of wage accruals over disbursements 1 Ni t lurplitn Investment will sign changed I rcllniliinry estimates by Council of Economic Advisers Nut nviillnbli iv I I Government transfer payments to persons foreign net transfers by Government net interest paid by government and subsidies less current surplus of government enterprises NOTE Series revised beginning 1959 For details see Survey of Current Business July 1962 Data for Alaska and Hawaii included beginning I960 Source Department ol Commerce except as noted GROSS NATIONAL PRODUCT OR EXPENDITURE Gross National Product rose 7 billion seasonally adjusted annual rate in the second quarter according to the revised series Consumer expenditures accounted for almost 5 billion of the gain and government purchases about 11A billion BILLI 3NS OF DOLLARS BILLIONS OF DOLLARS SEASONALLY ADJUSTED ANNUAL RATES 6OO GROSS NATIONAL PRODUCT v r too 400 PERSONAL CONSUMPT ION EXPENDITURES O 200 GOVERNMENT PURCHASES OF GOODS AND SERVICES A IOO c GROSS PRIVATE DOMESTIO X INVESTMENT NET EX ORTS OF GOODS AN 0 SERVICES v v I 1 I PRE LIM1NARY ESTIMATES BY COUNCIL OF ECONOMIC ADVISERS SOURC E DEPARTMENT OF COMMERCE EXCEPT AS NOTED 1 if COUN at OF ECONOMIC ADVJS fiS Billions of dollars Government purchases of goods and Total Personal Gross Implicit Net services gross Total conprice private exports national gross sump domestic of goods Federal deflator Period State for total product national tion and in 1961 product expend invest services Total Total i National Other and GNP 2 ment local defense prices itures SS S Seasonally adjusted annual rates 1960 Third quarter Fourth quarter 1961 First quarter Second quarter Third quarter Fourth quarter First quarter 4 Second quarter SOS i Less Government sales f These expenditures correspond closely with budget expenditures for national defense shown on p 31 s Gross national product in current prices divided by gross national product In 1961 prices Preliminary estimates by Council of Economic Advisers i 101 2 NOTE Series revised beginning 1959 For details sco Survey of Current Business July 1962 Data for Alaska and Hawaii included beginning 1960 Source Department of Commerce except as noted NATIONAL INCOME Compensation of employees rose 61 2 billion seasonally adjusted annual rate in the second quarter of Other types of noncorporate income except farm proprietors also rose BILLIONS OF DOLLARS BILLIONS OF DOLLARS 1 5OO SEASONALLY ADJUSTED ANNUAL RATES 400 COMPENSATION OF EMPLOYEES ZOO CORPORATE PROFITS AND INVENTORY VALUATION ADJUSTMENT 100 PROPRIETORS AND RENTAL INCOME V I PRELIMINARY ESTIMATES BY COUNCIL OF ECONOMIC ADVISERS SOURCE DEPARTMENT OF COMMERCE EXCEPT AS NOTED COUNCIL OF ECONOMIC ADVISERS Billions of dollars Total national income Period I Compensation of employees Proprietors income Farm Business and professional Rental income of persons Corporate profits and inventory valuation adjustment Net interest Total Profits Inventory valuation before taxes adjustment O Seasonal adjusted annual rates J960 Third quarter Fourth quarter J 9 G I First quarter Second quarter Third quarter l i u r l h quarter IDfiL First qii irlcr iScM nml quarter i Includes employer fonl rilmtions for social insurance See also p 3 I rHiniiimry rslimati s l y Cotinc il of Economic Advisers Nut nvnlhihlc NOTE Series revised beginning 1959 For details see Survey of Current Butiness July 1962 Data for Alaska and Hawaii included beginning 1960 Source Department of Commerce except as noted SOURCES OF PERSONAL INCOME Personal income continued to advance in June with a rise of 0 7 billion seasonally adjusted annual rate or about half as much as in May Labor income accounted for most of the rise in these 2 months BILLIONS OF DOLLARS BILLIONS OF DOLLARS BUSINESS PROFESSIONAL AND RENTAL INCOME V FARM PROPRIETORS INCOME TRANSFER PAYMENTS L S 1 i l I SOURCE DEPARTMENT OF COMMERCE Total personal income Period May June July August September October NovemberDecember 1962 January February March April 3 May June Billions of dollars Labor income Proprietors income wage and Rental salary disDiviBusiness income dends bursements of Farm and pro persons and other fessional labor income Seasonally adjusted annual Compensation of employees see p 2 excluding employer contributions for social insurance and the excess of wage accruals over disbursements s Personal income exclusive of net income of unincorporated farm enterprises farm wages agricultural net interest and net dividends paid by agricultural corporations 3 Includes stepped up payment of National Service Life Insurance dividends of 218 million 2 6 billion at annual rate 1962 COUNCIL OF ECONOMIC ADVISERS Less PerPersonal Transfer sonal contributions payinterest income ments for social insurance rates Preliminary Series revised beginning 1959 For details see jS i Business July1t962 Data for Alaska antd Hawaii included beginning li GO Source Department of Commerce Nonagricultural personal income J i DISPOSITION OF PERSONAL INCOME Both disposable personal income and personal consumption expenditures increased in the second quarter increase in income being more than in expenditures the saving rate rose BILLIONS OF DOLLftRS With the BILLIONS OF DOLLARS COLLARS 2 200 DOLLARS PER CAPITA DISPOSABLE PERSONAL INCOME iwmaftffX IN 1961 PRICES 2 000 X uunirf I T i i nM H I J IN CURRENT PRIC ES iA J 1 i 1956 i i i i 1958 i 1 I 1 i 1959 I I I960 l I SEASONALLY ADJUSTED ANNUAL RATES PRELIMINARY ESTIMATES BY COUNCIL OF ECONOMIC ADVISERS SOURCE DEPARTMENT OF COMMERCE EXCEPT AS NOTED Period Disposable personal income Third quarter 351 7 Fourth quarter First quarter 354 3 Second quarter 361 0 Third quarter Fourth quarter 1902 First quarter 375 6 Second quarter NonDurable durable Services goods goods Personal saving Billions of dollars Seasonally adjusted annual l i rsnn il income p 3 less personal taxes and uontax payments flues pecaltics etc Income in current prices divided by tbe implicit price deflator for personal eonsuniption expenditures on a 1961 base Population of the United States including armed forces abroad AtmuaT data a of July 1 quarterly data centered in the middle of the period Interpolated from montny figures Series revised beginning J9W L 1 I 1 JIA COUNCIL OF ECONOMIC ADVISERS Personal consumption expenditures Total I rates Per capita disposable personal income Current 1961 prices prices 3 Saving as percent Populaof distion posable thou 3 personal sands income percent Dollars Preliminary NOTE Series revised beginning 1959 For details see Survey of Current Busi nets July 1962 Data lor Alaska and Hawaii included beginning I960 Sources Department of Commerce and Council of Economic Advisers FARM INCOME Realized gross farm income seasonally adjusted was unchanged and production expenses rose slightly during the second quarter of 1962 Net farm income fell below the first quarter 1962 level but remained above the second quarter 1961 level BILLIONS OF DOLLARS BILLIONS OF DOLLARS SEASONALLY ADJUSTED ANNUAL RATES 50 REALIZED GROSS FARM INCOME NET FARM INCOME INCLUDING NET INVENTORY CHANGE 10 SOURCE DEPARTMENT OF AGRICULTURE COUNCIl OF ECONOMIC ADVISERS Income received by total farm population Income received by farm operators from farming Realized gross Period From all sources Third quarter Fourth quarter First quarter Second quarter Third quarter Fourth quarter 1962 First quarter 7 Second quarter From From agricul nonagritural cultural sources sources Total a 8 e fl e e Net income per farm including net inventory change ProducCash tion ex Exclud Includreceipts penses ing in ing net in Current 1961 from prices prices 5 ventory ventory3 marketchange change ings Dollars Billions of dollars Seasonally adjusted annual rates i no J Net income of farm operators from farming including net inventory change and wages received by farm resident workers 3 Cash receipts from marketings Government payments and nonmoney income furnished by farms Inventory of crops and livestock valued at the average price for the year Series revised beginning 1952 on the basis of 1959 Census of Agriculture definition of a farm The number of farms is held constant within a year Net 5 Income in current prices divided by the index of prices paid by i family living items on a 1961 base 6 Not yet available 7 Preliminary NOTE Series revised beginning 1959 For details see Farm Inroinr July 1962 Source Department of Agriculture CORPORATE PROFITS Corporate profits before taxes are estimated to have declined 1 3 billion seasonally adjusted annual rate in the first quarter of 1962 to 50 1 billion accordins to recent revisions However they were 10 3 billion above the first quarter of 1961 BILLIONS OF DOLLARS BILLIONS OF DOLLARS I956 I I957 I I I EXCLUDING INVENTORY V A L U A T I O N ADJUSTMENT SOURCE DEPARTMENT OF COMMERCE COUNCIL OF ECONOMIC ADVISERS Billions of dollars quarterly data at seasonally adjusted animal ratesi Period i i 957 i iS 959 191 it T h i n l i j i i HIT i i i r l h qi t r l i T Kir l i ll l l l r Srrt DM i p n r l i T T n i i t i i f t IT I 1 1 n n t l i i j i i rt c 1 19I1 J Kir sl i i i n InSrciinil i i n r l r r Corporate profits before taxes and inventory Corporate profits valuation adjustment J after taxes TransManufacturing Corpo Corpoportarate rate tion All tax profits DiviNonAll comUndisDurable durable other before dend liabilindustributed muniTotal goods industaxes ity payTotal tries goods cations profits industries ments indusand tries tries public utilities S Seasonally adjusted annual rates C NOTE Series revised beginning 1959 For details see Survey of Current Business July 1962 Data for Alaska and Hawaii included beginning 1960 Source Department of Commerce except as noted GROSS PRIVATE DOMESTIC INVESTMENT In the second quarter business fixed investment and residential construction rose while the inventory accumulation rate fell resulting in a total gain of about 1 billion seasonally adjusted annual rate in private investment B I L L I O N S OF D O L L A R S BILLIONS OF DOLLARS SEASONLLY ADJUSTED ANNUAL RATES GROSS PRIVATE DOMESTIC INVESTMENT PRODUCERS DURABLE EQUIPMENT n CHANGE IN BUSINESS INVENTORIES V t V 1 J 1956 L r 1959 I PRELIMINARY ESTIMATES BY COUNCIL OF ECONOMIC ADVISERS SOURCE DEPARTMENT OF COMMERCE EXCEPT AS NOTED 1962 COUNCtl OF ECONOMiC ADVISERS Billions of dollars Total gross private domestic investment Period Third quarter Fourth quarter First quarter Second quarter Third quarter Fourth quarter 1962 First quarter 3 Second quarter Fixed investment Total New construction Producers durable Residenequiptial Other 2 Total ment nonfarm Seasonally adjusted annual rates Revisions in series on new construction shown on p 17 have not yet been incorporated into these series a Other construction in this series includes petroleum and natural gas well drilling which are excluded from estimates on p 17 Preliminary estimates by Council of Economic Advisers Change in business inventories Total Nonfarm o 1 H s i ii 3 1 NOTE Series revised beginning 1959 For details seo Su rvey of Current Business July 1962 Data for Alaska and Hawaii included beginning I960 Source Department of Commerce except as noted EXPENDITURES FOR NEW PLANT AND EQUIPMENT Accordins to the May survey business firms are plannins to spend 37 2 billion on new plant and equipment in 1962 about 8 percent more than in 1961 Expenditures seasonally adjusted increased 1 percent in the first quarter of 1962 Larger quarterly increases are anticipated for the remainder of 1962 BILLIONS OF DOLLARS BILLIONS OF DOLLARS SEE NOTE 3 ON TABLE BELOW SOURCES SECURITIES AND EXCHANGE COMMISSION AND DEPARTMENT OF COMMERCE COUNCIL OF ECONOMIC ADVISERS Billions of dollars Transportation Manufacturing Period Mining Total i Total I Third quarter Fourth quarter 1901 First quarter Second quarter Third quarter Kourt li Quarter I Hi Kirnl quarter 3 Second quarter Third quarter Durable NonduraRailroads Other goods ble goods Seasonally adjusted annual rates floriculture riui ami other includes trade service finance communications and i i n M n y iuna I n n n t l i ipnltiry ilnlii nn finflclpflted capital expenditures as reported by business i M tuijtwtiiicnts when necessary for systematic tendencies 8 Public utilities Commercial and other NOTE Beginning 1959 all quarterly data are rounded to nearest 50 million Annual total is the sum of unadjusted expenditures it does not necessarily coincide with tbe average of seasonally adjusted figures These figures do not agree with the totals Included in the gross national product estimates of tbe Department of Commerce principally because tbe latter cover agricultural investment and also certain equipment and construction outlays charged to current expense Sources Securities and Exchange Commission and Department of Commerce EMPLOYMENT UNEMPLOYMENT AND WAGES STATUS OF THE LABOR FORCE Both the labor force and civilian employment seasonally adjusted declined moderately in June unemployment changed little The level of MILLIONS OF PERSONS MILLIONS OF PERSONS UNEMPLOYMENT v i i i i i I i I I I I i I I I I I II i I PERCENT OF CIVILIAN LABOR FORCE PERCENT OF CIVILIAN LABOR UNEMPLOYMENT RATE SEASONALLY ADJUSTED 1 T FT T r IT T S s J I L 1958 I YEARS OF AGE AND OVER SOURCE DEPARTMENT OF LABOR Period June July August SeptemberOctober NovemberDecember January February March April 2 April 2 May 2 June Total labor force Civilian includ labor ing force armed forces ty f 962 COUNCIL OF ECONOMIC ADVISERS Civilian employment Total Nonagricultural Civilian employment Unemployment Civilian labor force Total Agricultural Nonagricultural Unemployment Unemployment rate percent of civilian labor force Unad Seasonjusted ally adjusted Percent Thousands Unadjusted of persons 14 years of age and over Seasonally adjusted SS SOS S S B S55 5 SI SS S B 5 4 C i Seasonally adjusted totals may differ from sum of components because totals and components nave been seasonally adjusted separately 3 1960 Population Census data used in estimation procedure all other data based on 1950 Population Census NOTE For definitions and coverage see Employment and learnings Department of Labor Beginning 1960 data include Alaska and Hawaii Source Department of Labor w UNEMPLOYMENT INSURANCE PROGRAMS Insured unemployment averaged 1 7 million in June about 1 2 million less than in June 1961 MILLIONS OF PERSONS MILLIONS OF PERSONS WEEKLY INSURED UNEMPLOYMENT STATE PROGRAMS JAN FEB APR AUG MAY OCT SOURCE DEPARTMENT OF LABOR Period May June July August September October November December 1962 January February March April May June Week ended 1962 June July 73 COUNCIL OF ECONOMIC ADVISERS All programs Insured Total unem benefits Covered ploypaid employ ment milment weekly lions of averdolage lars i Thousands State programs Insured unemployment 10 Initial claims Insured unemployment as perExhaus cent of covered employment tions Unad Seasonjusted ally adjusted Weekly average thousands Includes Federal and State programs for temporary extension of benefits be Inning June 1968 1 Not available Preliminary NOV Percent d S 5 S Benefits paid Total Average weekly lions of check dollars dollars mil NOTE For definitions and coverage see I960 Supplement to Economic Indicators Data for Alaska and Hawaii included for all periods and for Puerto Rico since January 1961 Source Department of Labor NONAGRICULTURAL EMPLOYMENT Nonfarm payroll employment seasonally adjusted increased by 45 000 in June private sector declined slightly MILLIONS OF WAGE AND SALARY WORKERS 60 However employment in the MILLIONS OF WAGE AND SALARY WORKERS ALL NONAGRICULTURAL ESTABLISHMENTS MANUFACTURING 58 TOTAL i DURABLE GOODS INDUSTRIES 52 V NONDURABLE GOODS INDUSTRIES Lj I CONTRACT CONSTRUCTION ENLARGED SCALE WHOLESALE AND RETAIL T R A D E ENLARGED SCALE Z S S O 1959 I960 SEASONALLY ADJUSTED DATA SOURCE DEPARTMENT OF L ABOR COUNCIL OF ECONOMIC ADVISERS Thousands of wage and salary workers l Manufacturing private Total unadjusted Period s SO May June July August September October November December 1962 January February March April 3 Mav June 3 S BOS 53 7S Total Total Durable Nondura Total 2 goods ble goods rail iod Seasonally Nonmanufacturing private Government Contract Transporta Wholesale Federal construc tion and pub and retail State trade tion lic utilities local adjusted m era t ion of population whereas the estimates in this table are based on rcpor from employing establishments 2 Includes mining finance insurance and real estate and service and nifscellaneous not shovra separately t Preliminary NOTE Beginning 1959 data include Alaska and Hawaii Source Department of Labor 11 WEEKLY HOURS OF WORK In June the average workweek of production workers in manufacturing was 40 4 hours seasonally adjusted or 0 2 hours less than in May HOURS PER WEEK SEASONALLY ADJUSTED 46 DURABLE MANUFACTURING HOURS PER WEEK SEASONALLY ADJUSTED 46 NONDURABLE MANUFACTURING Uii ii I i t l l I i i i i k CONTRACT RETAIL TRADE CONSTRUCTION I9S I960 r Tj i i i i I9 S9 1962 I960 SOURCE DEPARTMENT OF LABOR Period COUNCIL OF ECONOMIC ADVISERS Average hours per week 1 Manufacturing industries Non Contract Durable durable construc Retail All trade goods tion goods I May June July August September October November December 1962 January February March April 5 May June Hours per week Seasonally adjusted Data relate to production workers or nonsupervisory employees Beginning 1959 data include Alaska and Hawaii J Differs from total nonagricultural employment p 9 which includes persons with jobs but not at work for such reasons as vacation illness bad weather and Industrial disputes Beginning 1960 data include Alaska and Hawaii See also footnote 2 page 9 12 s Persons at work in nonagricultural2industries by hours worked per week Under 35 hours Part time for economic reasons Over hours hours Total Usually Usually partfulltime l time 3 time Millions of persons 14 years of age and over a E 1l Includes persons who worked part time because of slack work material shortages or repairs new job started or job terminated Primarily includes persons who could find only part time work Preliminary Not available Average hours worked usually full time 23 7 usually part time 16 7 Source Department of Labor AVERAGE HOURLY AND WEEKLY EARNINGS SELECTED INDUSTRIES Average hourly earnings of production workers in manufacturing were unchanged in June at 2 39 earnings rose 23 cents reaching Average weekly DOLLARS 1959 I I SOURCE DEPARTMENT OF LABOR 1962 COUNCIL OF ECONOMIC ADVISERS For production workers or nonsupervisory employees Average hourly earnings current prices Manufacturing industries Contract Retail conNonDurable durable structrade All goods tion goods Period May June July 2 31 AugustSeptember October 2 36 November 2 38 December 1962 January February 2 38 March 2 39 April 2 2 39 May2 2 39 June Earnings in current 1 Preliminary 3 Average weekly earnings current prices Manufacturing industries All prices divided by the consumer price index on o 1961 base Not available NonDurable durable goods goods Contract construction Retail trade NOTE Beginning 1959 data include Alaska and Hawaii Source Department of Labor Average weekly earnings all manufacturing industries 1961 prices S t S I pi 13 PRODUCTION AND BUSINESS ACTIVITY INDUSTRIAL PRODUCTION The industrial production index seasonally adjusted changed little in June Production of business equipment continued to increase while output of materials end consumer goods was about the same as in May INDEX SEASONALLY ADJUSTED INDEX SEASONALLY ADJUSTED I5O COUNCIL OF ECONOMIC ADVISERS SOURCE B O A R D OF GOVERNORS OF THE F E D E R A L RESERVE SYSTEM Total industrial production Period May June July August September October November December 1962 I inuiiry 1 Vbnmrv Mnroh April Muy June Preliminary 14 seasonally adjusted Industry Manufacturing Total NonDurable durable Mining Utilities Market Final products ConTotal sumer Equipment goods Source Board of Governors of the Federal Reserve System Materials PRODUCTION OF SELECTED MANUFACTURES Output of primary metals and transportation equipment seasonally adjusted declined in June while production of other durable and nondurable manufactures increased INDEX SEASONALLY ADJUSTED INDEX I957 IOO SEASONALLY ADJUSTED CHEMICALS PETROLEUM AND RUBBER f t i S r SOURCE BOARD OF GOVERNORS OF THE 1 f r t X GES AND TOBACfl O I COUNCIL OF ECONOMIC ADVISERS FEDERAL RESERVE SYSTEM seasonally adjusted Durable manufactures FabriPrimary cated metals metal products Period May June July August September October November December 1962 January February March April May June 1 Preliminary Not available Nondurable manufactures Transpor Lumber Textiles Machin tation and apparel ery equipprodand ment ucts leather Paper and printing Chemicals Foods beverpetroleum and ages and rubber tobacco Source Board of Governors of the Federal Reserve System 15 WEEKLY INDICATORS OF PRODUCTION In June steel continued to decline with a drop of 8 percent car assemblies were down about 10 percent primarily as a result of a strike Most other weekly indicators showed gains for the month MILLIONS OF TONS MILLIONS OF SHORT TONS DAILY AVERAGE 1 i t t i i i i i L iJLJ1 4U I t I i 1 1 LuJLL i i SOURCES AMERICAN IRON AND STEEL INSTITUTE DEPARTMENT OF THE INTERIOR EDISON ELECTRIC INSTITUTE AND WARD S AUTOMOTIVE REPORTS Period Weekly average May June July August September October November December 1962 January February March April May June 2 Week ended 1962 June Julv Daily average Preliminary 16 COUNCIL OF ECONOMIC ADVISERS Electric Bituminous Freight Paper board Steel produced Cars and trucks power coal mined loaded produced assembled thousands distributed thousands Index Thousands of net millions of of short thousands thousands Total Cars Trucks of cars of tons tons 100 kilowatt hours tons i i 80 ci I Not Charted Sources American Iron and Steel Institute Edison Electric Institute Department of the Interior Association of American Railroads National Paperboard Association and Ward s Automotive Reports NEW CONSTRUCTION In June expenditures for new construction seasonally adjusted rose nearly 4 percent private construction largely residential increased Outlays for both public and BILlJONS OF DOLLARS BILLIONS OF DOLLARS SEASONALLY ADJUSTED ANNUAL RATES O TOTAL NEW CONSTRUCTION s r S SO f RIVATE O SO 7 eo f T i r n V 20 N rr PRIVATE RESIDENTIAL NONFARM w t i new series t I May June t EO 10 i i i i i 1 i i i i i i t i i r f i i i i I l o I COUN CIL OF ECONOMIC ADVISERS Total Residential Commercial and nonfarm industrial Billions of dollars Compiled by F W Dodge Corporation Relates to 48 States beginning 1956 and to 37 Eastern States prior to 1956 1 In addition to major differences between old and new series data for Alaska and Hawaii are included beginning January 1959 I Other Construction contracts CommerFederal Total value cial and industrial State and 48 States floor space index local millions 100 of square feet Seasonally adjusted SeosoraaHj adjusted annual rafes 1961 May June July August September October November December 1962 January February March April Private Period S f SEE NOTE 3 IN TABL E BELOW SOURCE DEPARTMENT OF COMMERCE Total new construction expenditures I 1 I a i rf J o 1 t Seasonally adjusted annual rales Preliminary Sources Department of Commerce and F W Dodge Corporation 17 HOUSING STARTS AND APPLICATIONS FOR FINANCING Private housing starts declined 11 percent in June to an annual rate of units seasonally adjusted applications and VA appraisal requests also declined MILLIONS OF UNITS ANNUAL RATE FHA MILLIONS OF UNITS ANNUAL RATE SEASONALLY ADJUSTED PRIVATE NONFARM HOUSING STARTS v A V T V 1962 SOURCES DEPARTMENT OF COMMERCE FEDERAL HOUSING ADMINISTRATION FHfl AND V E T E R A N S ADMINISTRATION Vfl COUNCIL OF ECONOMIC ADVISERS Thousands of units Total housing starts farm and nonfarm Period Total private and public I May June July August September October November December 1962 January February March April May June Private Total private and public 18 Private Government programs VA FHA Total Old series New series Units represented by mortgage applications for new home construction Not available 3 See IIousivQ Starts C 20 11 Supplement Bureau of the Census May 19GO for description Data for Alaska and Hawaii included Private housing starts seasonally adjusted annual rates Nonfarm housing starts Total farm and Nonfarm nonfarm Proposed home construction Applications for FHA commitments Requests for VA appraisals New series IS S SS S Preliminary Sources Department of Commerce Federal Hous ing Administration FHA and Veterans Administration VA TRADE SALES AND INVENTORIES Retail sales seasonally adjusted declined by Vz percent in May while sales at wholesale advanced 2 percent Preliminary data show a 2 percent decline in retail sales for June BILLIONS OF DOLLARS BILLIONS OF DOLLARS RETAIL TRADE 16 WHOLESALE TRADE DURABLE GOODS STORES INVENTORIES x V V i V 1 r 1 NVENTORIES st y v t2 K y V SALES SALES A 8 DEPARTMENT STORES INVENTORIES INVE NTORIES Lx S SALES V v w v x I SEASONALLY ADJUSTED SOURCES DEPARTMENT OF COMMERCE AND BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Wholesale 1 Period Sales Inventories 2 Total Inventories NonDurable durable goods goods stores stores Total Department stores 2 NonDurable durable goods goods stores stores Billions of dollars seasonally adjusted April May June July August September October November December 1962 January February March April 8 May June Monthly average for year and total for month 1 Book value end of period seasonally adjusted UeRjnnlnR January I960 data include Alaska and Hawaii End of period except annual data which are rr onthly averages COUNCIL OF ECONOMIC ADVISERS Retail Sales l 3 1 i i i i v XV SALES 120 r i c J N INDEX NONDURABt E GOODS STORES Sales I Inventories 4 Index seasonally adjusted Based on retail value Preliminary Sources Department of Commerce and Board of Governor of the Keserve System 19 MANUFACTURERS SALES INVENTORIES AND NEW ORDERS There was little change during May in manufacturers sales inventories and orders seasonally adjusted Preliminary data indicate that new orders for durable goods declined again in June BILLIONS OF DOLLARS BILLIONS OF DOLLARS 40 MANUFACTURERS INVENTORIES DURABLE GOODS eo 30 MANUFACTURERS NEW ORDERS NONDURABLE GOODS NONDURABLE GOODS tiiuiiiuiuitWfel i i i n i uuuu ii DURABLE GOODS I SEASONALLY ADJUSTED SOURCE DEPARTMENT OF COMMERCE 1962 COUNCIL OF ECONOMIC ADVISERS Billions of dollars seasonally adjusted Manufacturers sales Period Total April May June July August September October November December January February March April33 May June 3 4 NonDurable durable goods goods Monthly average for year and total for month Book value end of period seasonally adjusted 20 Manufacturers inventories 2 NonDurable durable goods goods Total Manufacturers new orders Total Preliminary Source Department of Commerce 1 Durable goods NonMachinery durable and goods Total equipment Not charted MERCHANDISE EXPORTS AND IMPORTS In May exports seasonally adjusted dropped about 1 percent and imports rose slightly leaving a monthly trade balance of 390 million BILLIONS OF DOLLARS 5 BILLIONS OF DOLLARS SEASONALLY ADJUSTED 8 0 z o MERCHANDISE EXPORTS EXCLUDING MUTUAL SECURITY PROGRAM SHIPMENTS 1 5 I O I O I9S6 I962 SOURCES DEPARTMENT OF COMMERCE AND DEPARTMENT OF DEFENSE Period Monthly average I April Mav June July August September October November December 1962 January February March April Mav 1C J I J Unadjusted Total exports less Department of Defense shipments of grant aid military supplies and equipment under the Mutual Security Program 2 Imports for immediate consumption plus entries into bonded warehouses 3 Imports for immediate consumption plus withdrawals for consumption from bonded warehouses COUNCIL OF ECONOMIC ADVISERS Millions of dollars Merchandise exports excluding Merchandise imports Mutual Security Program shipments Total includGeneral 8imDomestic exports Imports for consumption 3 ing reexports 1 ports Indus Finished Indus Finished Season Unad Total i Food trial manu Season Unad Total Food trial manually ad justed ally ad justed stuffs matefacstuffs matefacjusted rials tures justed rials tures I Unadjusted S S S i 38 ft T IS i 1S Total adjusted to exclude 33 5 million of the value reported hy economic category Sources Pcpiirtmunt of Commerce nml Drpnrljnriil of 1 rfrn U S BALANCE OF PAYMENTS Despite a small decline in exports of goods and services and a slight rise in imports in the first quarter of 1962 the over all deficit as measured by U S gold sales and increases in foreign dollar assets fell sharply to 1 9 billion seasonally adjusted annual rate S1L IONS OF D O L L A R S 50 BIL LIONS OF DOLLARS 50 U S PAYMENTS U S PAYMENTS TOTAL w S M P SSS C A P I T A L NET M S S i l 1 iVA 1S4 w ii p U S RECEIPTS 20 T t S rrrfSr s IMPOF TS OF GOODS AN a SERVICES I IO i i i i 1 i i i l 1 l 1 1 t t U S RECEIPTS EXCESS OF 40 FOREIGN 10 CAP TflLj TOTAL 30 u yyu 0 uu y EJ I sssk kj EXPORTS OF GOOD AND SERVICES E X C E S S OF I 1 I L 1 L U i I SE A S O N A L L Y ADJUS T E O ANNUAL RATES IN CLUDES UNRECOR DED TRANSACTIONS EXCLUDES LIQUID DOLLAR AS5E TS SO URGE O E P A R T M E f T OF COMMERCE O 1 I i I I I I t J COUNCIL OF ECONOMIC ADVISERS Millions of dollars U S receipts recorded Period Exports of goods and services I95S J First quarter Second quarter Third quarter l urth quarter 1902 l irst quarter Increase in foreign Balance Unregold and on recorded U S grants and capital net corded recorded transacliquid transtions U S actions dollar Private capital net pay errors and Governassets ment ments omissions through Total grants net or receipts receipts transacand tions with Total Direct the U S capital U S payments recorded Foreign capita Imports other of than goods liquid and dollar assets services net Seasonally adjusted annual rates c s reinil lances and pensions not sbown separately s 1 375 million increase in U S subscription to International Mono Includes over 400 million 1 7 billion at annual rate of subscriptions to international organizations and other special capital outflows o s advance debt repayment and interest payments on U S Governis of 774 million 3 1 billion at annual rate 1 Kxcl Inry F NOTE Data exclude goods and services transferred under military grants Jicfo e adjustment for receipts of principal and interest on Government loans paid in ihe previous quarter 22 Source Department of Commerce PRICES CONSUMER PRICES Consumer prices remained stable in May as the slight drop in prices of commodities was offset by the continued rise in service prices I N D E X INDEX I SOURCE DEPARTMENT OF LABOR Eeriod April All items May June July August September October November 104 5 December 1962 January 104 5 February 104 8 March April May 105 2 Source Department of Labor 1962 COUNCIL Of ECONOMIC ADVISERS Services Commodities Commodities less food Services All comAll Food Rent less modities Non services All Durable durable rent WHOLESALE PRICES Wholesale prices dropped in June for the third consecutive month 1961 Prices in June were 0 9 percent below February INDEX I957 59 IOO INDEX I957 59 IOO COMMODITIES OTHER THAN FARM PRODUCTS AND FOODS INDUSTRIALS SOURCE DEPARTMENT OF LABOR Period May June July August September October NovemberDecember 1962 January February March April May June 3 COUNCIL OF ECONOMIC ADVISERS All commodities Commodities other than farm products and foods industrials Indus Indus Produc Consumer finFarm Procished goods extrial inAll intrial essed prodcluding food dustricrude termedi er finfoods ucts ished 1 DurNonmate ate ma goods als terials 2 rials able durable Coverage of the subgroups does not correspond exactly to coverage of this index Excludes intermediate materials for food manufacturing and manufactured animal feeds includes in part grain products for further processing 24 3 Preliminary Source Department of Labor PRICES RECEIVED AND PAID BY FARMERS The index of prices received by farmers declined between May 1 5 and June 1 5 as a result of a sharp decline in crop prices Prices paid declined slightly and the parity ratio fell 1 point to 78 the same as the level a year earlier INDEX w RATIO V 100 PARITY RATIO anti I ftATtO OF INDEX OF PRICES RECEIVED TO INDEX OF PRICES PAID INTEREST TAXES AND WAGE HATES SOURCE DEPARTMENT OF AGRICULTURE COUNCIL OF ECONOMIC ADVISERS Prices received by farmers Period I All farm products July 15 August 15 September 15 October 15 November 15 December January 15 February 15 March 15 April 15 June May 15 June May Crops Percentage ratio of index of prices received by farmers to index of prices paid Interest taxes and wage rates Prices paid by farmers All items Livestock interest ProducFamily taxes and and tion living wage rates products items items parity index Index Source Department of Agriculture Parity ratio MONEY CREDIT AND SECURITY MARKETS MONEY SUPPLY The money supply rose about seasonally in June BILLIONS OF DOLLARS 1 160 BILLIONS OF DOLLARS 160 AVERAGES OF DAILY FIGURES SEASONALLY ADJUSTED ISO ISO TOTAL MONEY SUPPLY DEMAND DEPOSITS AT ALl COMMERCIAL BANKS COUNCtt OF ECONOMIC ADVISERS SOURCE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Period December December December December December December December December December June July August September October November December 1962 January February March April May June 2 First half 2 Second half Deposits at all commercial banks Preliminary 26 Averages of daily figures billions of dollars Money supply Seasonally adjusted Unadjusted Private Currency Currency Total demand outside Total outside deposits banks banks Related deposits unadjusted 1 Private demand deposits Gross time NOTE See note p 27 Source Board of Governors of the Federal Reserve System U S Government demand BANK LOANS INVESTMENTS DEBITS AND RESERVES Commercial bank loans rose 2 0 billion in June compared to practically no rise in June 1961 BILLIONS OF DOLLARS BILLIONS OF DOLLARS ALL COMMERCIAL BANKS ISO BANK LOANS 100 INVESTMENTS IN U S GOVERNMENT SECURITIES 50 INVESTMENTS IN OTHER SECURITIES 1956 I I 1958 I95T 1959 END OF MONTH SOURCE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM COUNCIL OF ECONOMIC ADVISERS All commercial banks May June July August September October November December 1962 January 5 5 February March 5 April May June 5 Investments Total loans and investments End of period Loans U S Government securities Other securities Billions of dollars s Weekly reporting member banks Business loans Bank All member banks 1 debits outside New York Reserves BorrowCity 343 ings at centers Federal seasonally adjusted Required Excess Reserve Banks 4 annual 3 rates Millions of dollars IS i ess SS Oil IS li l li Mill L OfiO Preliminary NOTE Between January and August 1959 series for all common mi h ml r expanded to include data for all hanks in Alaska and Hawaii I aLa fur nil i n r i n ber banks include Alaska and Hawaii beijiuninp 1954 and 1959 respectively Source Board of Governors of tlic TYilrnl Kt sorve Pyslem 27 CONSUMER CREDIT In May total consumer credit outstanding rose about 900 million compared to a rise of about 400 million in May 1961 BILLIONS OF DOLLARS BILLIONS OF DOLLARS END OF MONTH TOTAL CREDIT OUTSTANDING 40 20 NONINSTALMENT CREDIT I SEASONALLY ADJUSTED ENLARGED SCALE INSTALMENT CREDIT EXTENDED I I SOURCE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Millions of dollars Consumer credit outstanding end of period unadjusted Instalment NonAutomoTotal instalbile 2 Total ment 3 paper Period April May June July August September October November December January I Vbruarv March April M M V COUNCIL OF ECONOMIC ADVISERS Also irii hnU s oilier consumer goods paper repair and modernization loans n personal loans not shown separately C o n s u m e r credit extended for the purpose of purchasing automobiles and H fitrod by iho Items purchased n Consists of single payment loans charge accounts and service credit 28 Consumer instalment credit extended and repaid seasonally adjusted Automobile paper 2 Total i Extended Repaid Extended Repaid NOTE Data for Alaska and Hawaii included beginning January and August 1959 respectively Source Board of Governors of the Federal Reserve System BOND YIELDS AND INTEREST RATES The yield on 3 month Treasury bills rose in June and early July Most bond yields also increased PERCENT PER A N N U M PERCENT PER ANNUM 1962 SOURCES SEE TABLE BELOW COUNCIL OF ECONOMIC ADVISERS Period May June July August September October November Dfififimhpr 1962 January February March April May June Week ended 1962 June July Percent oer annum U fci Government High grade security yields municipal 3 month bonds Taxable Treasury Standard3 bonds 2 bills Poor s o i Kate on new issues witbin period Series includes April 1953 to date bonds due or callable 10 years and after April 1952 March 1953 bonds due or callable after 12 years October 1941 March 1952 bonds due or callable after 15 years Corporate bonds Moodv st Prime commercial paper 4 6 months H Aaa 2 90 a oe Baa 3 Weekly data are Wednesday figures Not charted Sources Treasury Department Board of Governors of the Federal Reserve System Standard Poor s Corporation and Moody s Investors Service OQ STOCK PRICES Stock prices declined during most of June but rose in late June and early July INDEX INDEX iJ SOURCE SECURITIES AND EXCHANGE COMMISSION Period Weekly average Mav June July August September October November December January February March April May June Week ended 1962 June July 6 13 Composite index COUNCIL OF ECONOMIC ADVISERS Manufacturing NonDurable Total durable goods goods Includes 300 common stocks 108 for durable goods manufacturing 85 for nondurable goods manufacturing 18 for transportation 34 for utilities 45 for trade finance and service and 10 for mining 30 Transportation Utilities Trade finance and service Mining NOTE Indexes are based on weekly closing prices Source Securities and Exchange Commission FEDERAL FINANCE BUDGET RECEIPTS AND EXPENDITURES For the fiscal year 1962 the budget showed a deficit of 6 3 billion billion BILLIONS OF DOLLARS In fiscal 1961 there was a deficit of 3 9 BILLIONS OF DOLLARS IOO NET BUDGET RECEIPTS NET BUDGET EXPENDITURES I960 NATIONAL DEFENSE BUDGET SURPLUS OR DEFICIT ENLARGED SCALE I FISCAL YEARS PRELIMINARY SOURCES TREASURY DEPARTMENT AND BUREAU OF THE BUDGET Period Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 1961 year 1957 year 1958 year 1959 year 1960 year 1961 4 year 1962 April May June July 4 4 August September 4 October 4 4 November December January 4 February March 4 4 April May 4 June COUNCIl OF ECONOMIC ADVfSERS Billions of dollars Net budget expenditures Net National defense 1 budget Department Total receipts Total of Defense military Expenditures for military activities of the Department of Defense military functions and the military assistance portion of the mutual security program atomic energy and defense related services 2 Military functions and military assistance 3 Includes guaranteed securities held outside the Treasury Not all of total shown is subject to statutory debt limitation Budget surplus or deficit I Public debt end of3 period Preliminary NOTE Total budget receipts and expenditures exclude certain Inlmgovern mental transactions Sources Treasury Department and Bureau of the Budget i CASH RECEIPTS FROM AND PAYMENTS TO THE PUBLIC In the fiscal year 1962 cash payments to the public exceeded cash receipts by 5 7 billion In fiscal 1961 cash payments exceeded cash receipts by 2 3 billion BILLIONS OF DOLLARS SEASONALLY ADJUSTED BILLIONS Of DOLLARS SEASONALLY ADJUSTED EXCESS OF 3ASH RECEIPTS EXCESS OF DASH PAYMENTS 1 I I 1 I i i i 1958 y LJ y tiu u i i i 1959 CALENDAR YEARS i i i 1 SOURCES TREASURY DEPARTMENT AND BUREAU OF THE BUDGET i I I960 COUHCIt OF ECONOMIC ADVISERS Billions of dollars Cash receipts from the public Period Fiscal vear total U Calendar rear total Quarterly total calendar years Third quarter Fourth quarter 1001 First quarter Second quarter Third quarter l Fourth quarter 1002 First quarter Second quarter 1 I rt iiniinnrv Cash payments to the public Kxcess of receipts or Cash receipts from the payments public Unadjusted Excess of receipts or payments Cash payments to the public Seasonally adjusted Q o o Sources Treasury Department and Bureau of the Budget For sale by the Superintendent of Documents U S Government Printing Office Washington 25 D C Price 20 cents per copy 2 00 per year 2 75 foreign 32 U S G O V E R N M E N T P R I N T I N G OFFICE

Nation's Income, Expenditure, and Saving

DATE: July 1962

PART OF:

Economic Indicators : July 1962

AUTHOR:

Council of Economic Advisers (U.S.)

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Council of Economic Advisers (U.S.) , United States. Congress. Joint Committee on the Economic Report, 1946-1956 and United States. Congress. Joint Economic Committee, 1956-. "Nation's Income, Expenditure, and Saving," in Council of Economic Advisers (U.S.) , United States. Congress. Joint Committee on the Economic Report, 1946-1956 and United States. Congress. Joint Economic Committee, 1956-. "July 1962," Economic Indicators (July 1962) : 4-4. https://fraser.stlouisfed.org/title/1/item/479/toc/120194 , accessed on December 13, 2019.

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Economic Data