Full text of E.8 Volume and Composition of Individuals' Saving : May 1969

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UNITED STATES

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A N D E X C H A N G E COMMISSION

WASHINGTON,D.C.

2 0549

For ReleosegCy ^.t-May 8, 1969

STATISTICAL SERIES

release NO.

VOLUME AND COMPOSITION OF INDIVIDUALS' SAVING, 1968
Saving by individuals during 1968 amounted to $56.2 billion, $1.3 billion
greater than 1967. The Securities and Exchange Commission defines individuals'
saving as the net investment in tangible assets plus the change in financial
assets less the increase in debt. The individuals' sector includes not only
households but also private trust funds, nonprofit institutions, farms, and
other noncorporate businesses. Saving in financial assets was up moderately
from 1967. But the large increase recorded in net investment in tangible assets
was more than offset by an even larger gain in individuals' debt expansion.
Individuals' Saving
(in billions of dollars)

Increase in financial
assets
Net investment in
tangible assets
(-) Increase in debt

Individuals' saving

1964

1965

1966

1967

1968

51.1

55.0

51.6

63.5

67.9

28.4
37.6

33.7
41.2

30.3
33.3

25.4
34.0

35.5
47.2

41.9

47.4

48.6

54.9

56.2

Increase in Financial Assets
While the increase in financial assets was moderately larger in 1968 than
in 1967, $67.9 billion as compared to $63.5 billion, there were major changes
in the components. Currency and demand deposits rose $13.5 billion, only $1.0
billion more than in 1967; but in both years the increase was large as compared
to earlier years.
As in 1966, the relative attractiveness of savings accounts and securities
was altered by the inability of depositary institutions to compete with the
higher interest rates available in the securities market. However, the 1968
shift from savings accounts to securities was not as severe as in 1966. Savings
accounts grew by $27.6 billion in 1968 as compared to $32.4 billion in 1967;
securities held increased by $2.5 billion in 1968 in contrast to a decline of
$3.4 billion during the previous year.
Individuals increased their holdings of all types of securities except
other corporate stock' in 1968. Holdings of U. S. Government securities rose
$3.5 billion as compared to a $0.8 billion disinvestment in 1967. Individuals
in 1968 increased their holdings of state and local government securities,
1




-2-

S-2361

whereas in the preceding year there was no appreciable change in their holdings
of such obligations. A record $4.2 billion increase in individuals' holdings of
corporate and foreign bonds occurred last year.
Individuals also bought a record amount of mutual funds, doubling their
savings through investment company shares as compared to 1967. However, they disposed of $12.1 billion of stock other than investment company shares. Although
individuals have been net sellers of stock since 1959, the amount sold in 1968
was unusually large. Individuals have become a less influential factor in the
stock market as institutional investors have increased their holdings and activity
markedly in recent years.
(See SEC statistical series, "Stock Transactions of
Financial Institutions".)

Net Investment in Tangible Assets
Net investment in consumer durables was at a record in 1968. After adjustment for capital consumption allowances, net investment in consumer durables
totaled $16.9 billion. Net investment in nonfarm homes by individuals rose to
$17.1 billion, 37 percent more than a year earlier.

Increase in Debt
Individuals' debt increased by a record $47.2 billion, 39 percent greater
than in 1967. Mortgage debt on nonfarm homes and consumer credit showed the
largest advance. Although the increase in residential mortgage debt in 1968 was
$4.3 billion larger than in 1967, the addition to debt outstanding was still
slightly less than the growth in the mid-sixties. Thus, rather than being classified as significant growth, the expansion in residential mortgage debt in 1968
was at best a recovery from the 1966-67 decline. Consumer credit expansion, on
the other hand, was not only a large rise from 1967 figures — $11.1 billion versus $4.4 billion — but also a record high.
Security credit expanded by $2.1 billion in 1968, as compared with $3.3 billion in 1967 and an $0.2 billion contraction in 1966. Life insurance policy loans
rose $1.3 billion last year, and other debt (bank loans not elsewhere classified,
open market paper, U. S. Government loans, and finance company loans to noncorporate business) increased $10.9 billion.




VOLUME AND COMPOSITION OF INDIVIDUALS' SAVING
( B i l l i o n s of d o l l a r s )
1964

1965

1966

1967

1968

1968

1 1967
Oct. Dec.

Apr. June

Jan. Mar.

JulySept .

Oct. Dec.

Unadjusted Quarterly
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

37

110.5
21.5

112.0
20.3

128.6
25.3

31.7

17.8
66.3
1.7

17.8
70.5
.7

18.4
72.6
.6

19.6
82.5
1.1

4.4
21.1

70.4
6.8

75.1
7.1

80.2
7.4

86.6
7.8

93.0
8.2

15.6
48.0

16.4
51.5

17.2
55.6

18.2
60.6

28.4
16.2

33.7
15.8

30.3
14.1

1.0
11.2
*

1.4
14.8
1.7

37.6
15.8
6.5
8.0
-.2
.5
6.9

41.9

1.8
4.7
2.1
4.9
4.8

98.8
23.0

108.7
22.9

16. 6
59.2

Gross investment

in tangible assets

Noncorporate business construction
and equipment

Capital consumption allowances

51.6
1.9
19.2
10.9
.6
7.4
2.2
1.2
3.7
-4.2
1.7
4.5
2. 1
6.2
5.1

1.6
2.8

Net

investment

in tangible assets

(16-21)

1
1

15.1
1.9
5.4
.9
. 1
1.1
.2
1.5
1.2
-3.3

13. 1
-3.2
8. 1
3. 1
.1
1.2
.4
.5
1.8
-1.0
. 5
1.2
.6
1.7
1.1

1.6
1.3
.b
1.7
1.4

1.3
1.2
.6
1.6
2.2

Individual Saving


*
Less


(1+25-30)

than $50 million.

.4
1.2
. 7
1.9
1.0

24.3
10.6
7.8
-1.1
1.0
-.9
.7
1.3
1.4
-4. 6
1.6
1.2
.7
2.5
1.1

33.0
6.0

32. 1
6.6

35.2
7.0

4.0
17.b
.8

s.b
21.0
.4

5.2
20.7
-.2

4.9
23.2
.1

22.3
2.0

22.7
2.0

23. 1
2.0

23.b
2.1

23.6
2.1

19.2
65.6

4. 6
15.6

4. 7
16.0

4.8
16.3

4.8
16. 7

4.9
16.6

25.4
12.5

35.5
17.1

9.4
4.3

5.5
3.8

9.9
4.0

8. h
4.5

11.5
4.9

.6
14.9
.7

.2
12.1
.6

. 3
16.9
1.1

-.2
5.4

-.7
1.6
.8

.8
4.7
.4

.3
4.0
-.2

41.2
16.1
6.4
9.4
.8
.6
7.9

33.3
11.4
6.4
6.9
-.2
1.5
7.3

34.0
10.9
6.1
4.4
3.3
1.0
8.2

47.2
15.2
6.6
11.1
2.1
1.3
10.9

10.6
3.8
1.7
3.3
1.4
.2
.1

3.4
3.7
1.4
-1.2
-1.0
.3
. 1

; 17.8
!
3.5
!
1.9
.
3.6
1.3
I
.4
1

7' 1

13.0
3.8
1.6
3.0
.5
.3
3.9

12.9
4.3
1.7
5.6
1.3
.3
-.2

47.4

48.6

54.9

56.2

20.8

15.2

j

7.1

10.9

22.9

6.3

*

j
1
;
!

Noncorporate business construction

Noncorporate business mortgage debt...

15.4
4.2
6.3
-.3
.2
.8
1
.8
1.2
-3.2

28.2
5.8

Noncorporate business plant

28
29
30
31
32
33
34
35
36

3.8
4.7
2.6
7.8
5.4

1.6
4.2
2.0
4.9
4.4

24
25
26
27

2.9
4.6
2.2
6.3
5.9

Miscellaneous financial assets
Private life insurance reserves
Private insured pension reserves
Private noninsured pension reserves...
Government ins. & pension reserves....

19
20
21
22
23

-6.9

Other U.S. Government securities...
State & local obligations
Corporate & foreign bonds
Investment company shares
Other corporate stock

55.0
7.2
26.5
3.1
.6
2.3
2.1
-.3
3.1
-4.8

63.5
12.5
32.4
-3.4
.9
-1.7
*

22.0
6.2
5.6
3.8
.2
3.1
.7
.4
1.1
-1.8

67.9
13.5
27.6
2.5
1.3
2.2
1.2
4.2
5.7
-12. 1

51.1
6.6
23.9
3.4
.9
1.0
2.2
-. 8
1.9
-1.8

Increase in financial assets
Currency and demand deposits

*

6.6
. 1