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

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.VP: C O A R O
UNITED STATES
S E C U R I T I E S A N D E X C H A N G E COMMISSION

OCT
For Release

1559

WASHINGTON,DC.

20549

Wednesday, October 1, 1969

STATISTICAL SERIES

R E L E A S E NO.

2393

VOLUME AND COMPOSITION OF INDIVIDUALS' SAVING
SECOND QUARTER, 1969
Individuals' saving during April-June of 1969 totaled $6.9 billion,
according to estimates released today by the Securities and Exchange Commission. The individuals' sector referred to herein includes households,
private trust funds, nonprofit institutions, farms and other noncorporate
businesses. Saving, as defined under the Securities and Exchange Commission
data, equals change in financial assets plus net investment in tangible
assets, less increase in debt. The amount of second quarter 1969 saving
is almost identical to the same period of 1968, but is lower than the $10.4
billion of the first quarter 1969. On a seasonally adjusted basis, however,
the first two quarters of this year registered about the same amount of
saving.

Increase in Financial Assets
The increase in total financial assets in the second quarter was $10.4
billion, which after seasonal adjustment almost equaled the first quarter.
A breakdown of these assets shows a good deal of switching between components.
Currency and demand deposits, which decreased by a sizeable $6.7 billion in
the first three months, registered a slight $0.6 billion increase in the
second three-month period. Savings accounts at commercial banks, mutual
savings banks, savings and loan associations, and credit unions increased
only $2.9 billion, an unusually low figure.
Individuals continued to make unprecedented additions to their holdings
of municipal securities. Net investment by individuals in state and local
securities during the first half of 1969 exceeded their total net purchases
of such obligations for the years 1966, 1967 and 1968 combined. Corporate
and foreign bond holdings of individuals decreased by a small amount. Net
investment in U. S. Government obligations totaled $200 million, considerably
less than in the preceding period. Growth in holdings of investment company
shares was less in the second quarter than earlier in 1969; and the net
liquidation of other corporate stock, which has been proceeding for years,
was $2.0 billion in the second quarter, as it was in the first. Individuals'
miscellaneous financial assets increased very little; increases in insurance
and pension reserves, both Government and private, showed no change other
than that associated with seasonal factors.




-2-

Stat. 2393

Investment in Tangible Assets
Net tangible investment equaled $10.3 billion in the second quarter,
higher than both the previous quarter and in the comparable 1968 quarter.
Investment in homes was $4.3 billion and in consumer durables was $4.9
billion during the second quarter. The balance, $1.1 billion, represented
the net investment of unincorporated business in inventories and fixed
investments.

Increase in Debt
Total change in outstanding debt of individuals was $13.8 billion
during the second quarter, higher than the $3.8 billion of the first quarter primarily reflecting seasonal influences. Mortgage debt on nonfarm homes
was up $3.9 billion, about the same as in the previous quarter. Consumer
credit, installment and noninstallment, increased $4.0 billion in the second
quarter, above the seasonally-depressed first quarter change; but this
sector now has a lower rate of growth than that of the latter half of 1968.
Security credit, concurrent with the experience earlier in the year, had
a very substantial decline of $1.9 billion in the second quarter.
With a resemblance to the situation in 1966, individuals were once
again turning to policy loans on their insurance contracts for needed funds.
The second quarter $0.7 billion increase in this type of debt exceeded that
recorded in any previous quarter.
'Other debt 1 increased $5.3 billion
during the second quarter.




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VOLUME AND COMPOSITION OF INDIVIDUALS' SAVING
(Billions of dollars)

1965

1966

1967

1968

1968
1Q

2Q

1969
3Q

4Q

1Q

2Q

Unad i usted Quarterly
1
2
3

Increase in financial assets
Currency and demand deposits
Savings accounts

5
6
7
8
9
10
11
12
13
14
15
16
18

U.S. savings bonds
Other U.S. Government securities
State and local obligations
Corporate and foreign bonds
Investment company shares
Other corporate stock
Miscellaneous financial assets
Private life insurance reserves
Private insured pension reserves
Private noninsured pension reserves
Government insurance & pension reserves...
Gross investment

in tangible assets

19

Noncorporate business construction
and equipment
Consumer durables

22
23
24

Nonfarm homes
Noncorporate business plant & equipment...
Consumer durables

25
26
27

Net investment in tangible assets (16-21)...
Nonfarm homes
Noncorporate business construction

31
32

37

Mortgage debt on nonfarm homes
Noncorporate business mortgage debt

Individuals' saving (1+25-30)

*



Less than $50 million.

55.0
7.2
26.5
3. 1
.6
2.3
2.1
-.3
3.1
-4.8
1.8
4.7
2.1
4.9
4.8

23. 1
10.7
7.8
-2.4
.1
-.9
.9
1.0
1.6
-5.0

7.9
-6.7
5.9
4.3
-. 6
2.7
1.8
.7
1.8
-2.0

10.4
.6
2.9
1.3
. 1
.2
2.4
-. 1
.7
-2.0

.4
1.2
.7
1.9
1.0

1.6
1.2
.7
2.5
1.1

-.2
1.2
.7
1.4
1.2

.1
1.2
.7
1.4
2.3

32.7
6.0

32.0
7.0

36.5
7.0

31.0
6.2

35.5
6.5

12.0
-4.2
8. 1
3.0
. 1
1.2
.4
.5
1.8
-1.0

15.3
2.3
5.4
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. 1
1.7
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1.5
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-3.3

3.8
4.7
2.6
7.8
5.4

.5
1.2
.6
1.7
1.1

1.3
1.2
.6
1.6
2.2

28.0
5.4

51.6
1.9
19.2
10.9
.6
7.4
2.2
1.2
3.7
-4.2

63.5
12.5
32.4
-3.4
.9
-1.7
1.5
2.6
-6.9

68.5
15.9
27.6
.7
.4
2.7
1.4
3.9
4.7
-12.5

1.7
4.5
2. 1
6.2
5. 1

2.9
4. 6
2.2
6.3
5.9

18.0
7.2
6.3
-.7
.2
.8
-.1
.8
.9
-3.2

108.7
22.9

110.5
21.5

112.0
20.3

129.2
25.4

17.8
66.3
1.7

17.8
70.8
.4

18.4
73.0
1.0

19.7
83.3
.8

4. 1
17.8
.7

5.6
20.8
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5.2
20.1
-.3

4.8
24.7

4.4
19.8
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5.8
22.9
.3

75. 1
7. 1
16.4
51.5

80.2
7.4
17.2
55.6

86.6
7.8
18.2
60.6

94.2
8.2
19.5
66.5

22.9
2.0
4.8
16.1

23.3
2.0
4.8
16.4

23.8
2. 1
4.9
16.8

24.2
2. 1
5.0
17.2

24.7
2. 1
5.0
17.6

25.2
2.1
5.1
18.0

33.7
15.8

30.3
14.1

25.4
12.5

35. 1
17.2

5.2
3.4

9.4
3.9

8.3
5.0

12.2
4.9

6.3
4. 1

10.3
4.3

1.4
14.8
1.7

.6
15.2
.4

.2
12.4
1.0

.3
16.9
.8

-. 6
1.7
.7

.8
4.4
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.3
3.3
-.3

-.2
7.5
*

-.7
2.2
.6

.7
4.9
.3

41.2
16. 1
6.4
9.4
.8
.6
7.9

33.3
11.4
6.4
6.9
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1.5
7.3

34.0
10.9
6.1
4.4
3.3
1.0
8.2

47.3
15.2
6. 6
11.1
2.2
1.3
11.0

3.3
3.7
1.4
-1.2
-1.0
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*

17.9
3.5
1.9
3.6
1.3
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7.2

13.0
3.8
1.6
3.0
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.3
3.8

13.2
4.3
1.7
5.6
1.4
.3
*

3.8
3.8
1.5
-1.2
-1.4
.3
.7

13.8
3.9
1.7
4.0
-1.9
.7
5.3

47.4

48.6

54.9

56.2

13.9

6.8

13.3

22.2

10.4

6.9

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