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89th Congress, 1st Session

Economic Indicators
August 1965

Prepared for the Joint Economic Committee by the




Council of Economic Advisers

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1965

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
HOUSE OF REPRESENTATIVES
RICHARD BOLLING (Missouri)
HALE BOGGS (Louisiana)
HENRY S. REUSS (Wisconsin)
MARTHA W. GRIFFITHS (Michigan)
THOMAS B. CURTIS (Missouri)
WILLIAM B. WIDNALL (New Jersey)
ROBERT F. ELLSWORTH (Kansas)

SENATE
JOHN SPARKMAN (Alabama)
J. W. FULBRIGHT (Arkansas)
WILLIAM PROXMIRE (Wisconsin)
HERMAN E. TALMADGE (Georgia)
JACOB K. JAVITS (New York)
JACK MILLER (Iowa)
LEN B. JORDAN (Idaho)

JAMES W. KNOWLES, Executive Director
JOHN R. STARK, Deputy Director
MARIAN T. TRACY, Financial Clerk
HAMILTON D. GEWEHR, Administrative Clerk

COUNCIL OF ECONOMIC ADVISERS
GARDNER ACKLEY, Chairman
OTTO ECKSTEIN
ARTHUR M. OKUN
Economic Indicators prepared under supervision of FRANCES M. JAMES
[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 23, 1949.
Charts drawn by Graphics Unit, Office of the Secretary, Department of Commerce.

Economic Indicators, published monthly, is available at 2 5 cents a single copy
or by subscription at $2.50 per year (foreign, $3.50) from:
SUPERINTENDENT OF DOCUMENTS
GOVERNMENT PRINTING OFFICE
WASHINGTON, D.C. 20402
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 $5.40 per year.
The 1964 Supplement to Economic Indicators) which describes each series
and gives annual data for years not shown in the monthly issues, is available
at 65 cents a copy.




TOTAL OUTPUT, INCOME, AND SPENDING
THE NATION'S INCOME, EXPENDITURE, AND SAVING
According to the revised series, gross national product rose $9.5 billion to a seasonally adjusted annual rate of
$665.9 billion in the second quarter. Consumer spending, Government purchases, and net exports increased while
gross private domestic investment decreased because of a drop in inventory investment
[Billions of dollars; quarterly data at seasonally adjusted annual rates]
Government

Persons
Disposable personal income
Period

1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1964: I
!!___
Ill—
IV.__
1965: I

Total
excluding
interest
and
transfers

Total l

270.2
287.3
302.2
312.4
330.3
342.3
356.3
376.7
394.3
425.2
412.4
423.3
429.6
435.4
440.7
447.3

275.3
293.2
308.5
318.8
337.3
350.0
364.4
385.3
403.8
435.8
422.6
433. 6
440.3
446.4
451.9
458.9

Net receipts
Expenditures
Personal
Interest Personal saving
TransPurpaid and ;onsumpTax and fers,
Transtioii
) or
transfer expendi- ( +disnontax
inter- chases
Total
fers,
Net
payreceipts
of
goods
expendiest,
interest,
saving
receipts
tures
or
ments
and
and
tures and subto foraccruals sub- 2 services
sidies 2
eigners
sidies
5. 1
5.9
6.3

6.5
7.0
7.8
8. 1
8.6
9.6
10.5
10.2
10.3
10.7
11.0
11.2
11.6

254.4
266.7
281.4
290. 1
311.2
325.2
335.2
355. 1
373.8
398.9
389.1
396.0
404.6
405.9
416.9
424.4

15.8
20.6
20.8
22.3
19. 1
17.0
21.2
21.6
20.4
26.3
23.3
27.3
25.0
29.5
23.8
23.0

Business

Period

1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1964: !_

1965:

67.4
70.0
67.8
60.9
75.3
74.8
71.7
83.0
86.9
92.9
89.7
90.9
92.6
97.7
102. 4
101. 1

23.4
25.5
28.7
33.0
34.0
36.5
41.3
42.8
44.5
46.8
46.7
46.4
46.8
47.2
48.8
48.3

-21.1
— 22.8
-18.1
-11.5
-18.5
-18.0
-13.0
-16.8
-17.8
-17.5
-15.5
-15.8
-16.1
-21.9
-19.9
-18.3

Foreign
Net exports of goods
net
and services
transfers by
GovernImNet
Exment
exports
ports
ports

2.4
2.3
2.3
2.4
2.3
2.6
2.7
2.8
2.7
2.7
2.9
2.7
2.7
2.6
2.9

1 Personal income (p. 5) less personal taxes and nontax payments (fines, penaltics, etc.).
2 Government transfer payments to persons, foreign net transfers by Government, net interest paid by Government, and subsidies less current surplus of
Government enterprises.
s Undistributed corporate profits, corporate Inventory valuation adjustment,
capital consumption allowances, and excess of wage accruals over disbursements.
Does not include retained earnings of unincorporated business which are included in disposable personal income.




100.4
109.0
115.6
114.7
128.9
139.8
144.6
157.0
168.3
172.7
171.3
169.7
173.5
176.5
183.7
185.8

74.2
78.6
86.1
94.2
97.0
99.6
107.6
117.1
122.6
128.4
126.3
129.7
128.7
128.6
130.9
132.9

23.4
25.5
28.7
33.0
34. 0
36.5
41.3
42.8
44.5
46.8
46.7
46.4
46.8
47.2
48.8
48.3

2.7
4.9
.7
-12.5
-2.1
3.7
-4.3
-2.9
1.2
-2.4
-1.6
-6.4
-2. 1
.8
3.9
4.7

Total
StatisExcess of income
tical
transfers
or
discrep(+) or receipts
ancy
of net
exports

Gross
national
product
or
expenditure

97.6
104.1
114.9
127.2
131.0
136. 1
149.0
159.9
167.1
175.1
173.0
176.1
175.5
175.7
179.8
181.1

International

Gross
Excess
Gross private
of
retained domestic
investearn-3
ment
invest-4
ings
ment
46.3
47.3
49.8
49.4
56.8
56.8
58.7
66.3
69.1
75.4
74.2
75.1
76.5
75.8
82.5
82.8

76.9
83.5
86.8
81.6
95.0
103.3
103.3
114.2
123.8
125.9
124.6
123.3
126.7
129.3
134.9
137.5

Surplus
( + ) or
deficit
(-) on
income
and
product
account

2.0
4.0
5.7
2. 2
.1
4.1
5.6
5.1
5.9
8.6
8.8
7.7
8.8
8.9
6.2
7.5

19.8
23.6
26.5
23.1
23.5
27.2
28.6
30.3
32.4
37.0
36.3
36.0
37.3
38.4
34.8
39.8

17.8
19.6
20.8
20.9
23.3
23.2
22.9
25.1
26.4
28.5
27.5
28.2
28.5
29.5
28.6
32.3

0.5
-1.6
-3.4
.1
2.3
-1.7
-3.1
-2.5
-3.2
-5.8
-6.1
-4.8
-6. 1
-6.2
-3.6
-4.7

395.9
420.4
441.1
445.8
484.5
504.8
520.8
559.8
589.9
629.2
614.0
624.5
635.5
643.3
660.6
670.6

2. 1
-1. 1
6
()
1.6
— .8
-1.0
— .7
.5
-.7
_

o

— '.7
-2.2
-4.2
-4.7

398.0
419.2
441. 1
447.3
483.6
503.8
520.1
560. 3
589. 2
628.7
614.0
624.2
634.8
641.1
656.4
665.9

4
Private business investment, purchases of capital goods by private nonprofit
institutions,
and residential housing.
5
Net
foreign investment with sign changed.
6
Less than $50 million.
NOTE.—Series revised beginning 1929. Tor details, see Survey of Current
Business, August 1965. Data for Alaska and Hawaii included beginning 1960.
Source: Department of Commerce.
1

GROSS NATIONAL PRODUCT OR EXPENDITURE
The revised series show a 1% percent rise in gross national product in the second quarter on a seasonally adjusted
basis/ after adjustment for price changes, the rise was about two-thirds of 1 percent.

BILLIG)NS OF DOLLARS

BILLIONS OF DOliARS
SFASnKl M1Y ADJUSTED ANNUAL RATES

700

700

.—-"

AfYl

GROSS NATIC)NAL

_

_-—***t
—*-***^

PRODUa

600

_

——-"'^

^
500
^
**"

1

'

500

^^
PERSONAL CC NSUMPTION
EXPEND!TURES

~~

•—
--%

^-"*

\
g***' *

JftA
4vO

400

!• «•*"*'

^00

•5QQ

>

^\
~
100

<
r"

GOVERNMENT PURCHASES
OF GOODS A ND SERVICES

\

.,.,.,..-.......,-.-•

too

UtMUUIilU

""'-'•"«•'•-'-««
„„„,„»...,..«*•.'••»

.„„„.„».„„„„ ,,«

„

„„.,...,,.»...

^ GROSS PR
IVATE DOMESTIC
JW/ESTMENT

NET EXPORTS OF GOODS
AND <SERVICES \

"
Q

!

T

f

!

1959

!

1960

f

f

t

1961

!

?

t
1962

SOURCE, DEPARTMENT OF COMMERCE

Period

1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1964: I
II
III
IV
1965: I
II

t

i
1963

i

I

i
1964

i

f

1

J

1965
COUNCIL OF ECONOMIC ADVISERS

Gove]rnment jmrehases of good s and
Total
Personal Gross
Net
Implicit
services
congross
Total
private exports
price
Federal
sump- domestic of goods
national gross
State
deflator
tion
product national
investTotal
and
and
for total
in 1958 product expend- ment services
Total National
GNP,
defense * Other local
itures
prices
1958= 1002
r
rates
y
adjust*
id
annual
season
all
quarterly
data
at
£
Billions <3f dollars;
8.4
246
0.4
57. 0
48. 7
52.6
81. 6
88.3
412.8
3646
230.0
41. 2
6. 2
27.4
47. 4
74.8
407.0
51.7
89.6
236. 5
1.8
364 8
38.6
5.5
30. 1
74.2
44 1
67. 4
2. 0
90.9
438.0
254.4
398.0
5.3
33.0
40. 3
78. 6
419.2
70.0
45. 6
4.0
940
266.7
446.1
5.3
442
36.6
86. 1
49. 5
441. 1
281.4
67.8
5.7
452.5
97.5
45.9
942
53. 6
7.7
40. 6
2.2
447.3
60.9
290. 1
100. 0
447. 3
7.6
43. 3
46.0
. 1 97.0
53.7
483. 6
475.9
75. 3
311. 2
101. 6
8.6
99. 6
53. 5
44 9
46. 1
487.8
325.2
74 8
41
103.3
503.8
57.4
9.6
335.2
47. 8
50. 2
497.3
520. 1
71.7
5.6 107. 6
104.6
63. 4
53.7
83.0
560. 3
5. 1 117. 1
51. 6 11. 8
530.0
355. 1
105.7
550. 0
86.9
64 4
50. 8 13.6
589. 2
5. 9 122. 6
58. 3
373.8
107. 1
92.
9
63.
1
65. 3
49. 9 15. 4
8. 6 128. 4
628.7
398. 9
_ 577.6
108. 9
89. 7
65.0
567.1
614 0
389. 1
8.8 126. 3
49.8 15.2
61. 3
108.3
90. 9
67.0
51.7 15. 3
575.9
624 2
396.0
7.7 129.7
62. 7
108.4
92.6
64 9
404 6
49. 5 15.4
582. 6
634 8
8.8 128. 7
63.8
109. 0
97. 7
584.7
641. 1
405.9
8. 9 128. 6
64 3
48.8 15. 5
64 3
109. 6
102. 4
6.2 130. 9
656.4
649
416.9
48.9 16. 0
597.5
66. 0
109. 8
424 4
101. 1
601.4
49.4 16.5
7.5 132.9
65. 9
665. 9
67.0
110. 7

iThis category corresponds closely with budget expenditures for national
defense, shown on p. 35.
» Gross national product in current prices divided by gross national product
!n 1958 prices.




t

NOTE.—Series revised beginning 1929. For details, see Survey of Current
Business, August 1966. Data for Alaska and Hawaii included beginning 1960.
Source: Department of Commerce.

NATIONAL INCOME
National income registered a gain of $9 billion (seasonally adjusted annual rate) in the second quarter,
compensation and farm proprietors* income contributed substantially to the gain.

BILLIONS OF DOLLARS
600

Employee

BILLIONS OF DOLLARS
600

TOTAL NATIONAL INCOME

500

500

400

300

CORPORATE PROFITS AND

100

INVENTORY VALUATION ADJUSTMENT

1965

1959
jy PRELIMINARY
'Sec Mole, page?.

SOURCE, DEPARTMENT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS-

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

Period

Total
national
income

Compensation
of em- 1
ployees

Proprietoi*s' income
Farm 2

Business
and professional

Rental
income
of
per-

Net
interest

Corporalbe profits and inventory va] uation ad justment *
Total

Profits Inventory
valuation
before
taxes 3 adjustment

1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964

304.7
303. 1
331. 0
350. 8
366. 1
367. 8
400. 0
414. 5
427. 3
457. 7
481. 1
514. 4

209. 1
208. 0
224. 5
243. 1
256. 0
257.8
279. 1
294. 2
302. 6
323. 6
341. 0
365. 3

13. 0
12.4
11. 4
11.4
11.3
13. 4
11. 4
12. 0
12. 8
13. 0
13. 0
12. 0

27. 5
27. 6
30. 3
31. 3
32. 8
33. 2
35. 1
34. 2
35. 6
37. 1
37. 8
39. 1

12.7
13. 6
13. 9
14. 3
14. 8
15. 4
15. 6
15. 8
16. 0
16. 7
17. 6
18. 2

2.8
3.6
4. 1
4. 6
5.6
6.8
7. 1
8.4
10. 0
11. 6
13. 6
15.2

39. 6
38.0
46. 9
46. 1
45. 6
41. 1
51.7
49. 9
50. 3
55.7
58. 1
64. 5

40. 6
38.3
48. 6
48. 8
47. 2
41. 4
52. 1
49. 7
50. 3
55. 4
58. 6
64. 8

1964: I
II
III
IV

501. 6
510. 5
519. 5
526. 3

355. 1
361. 9
369. 0
375. 4

11. 9
12. 0
12. 0
12.2

38. 5
39. 0
39. 4
39. 6

17.9
18. 1
18. 3
18.5

14, 5
15. 0
15. 4
15. 7

63. 6
04. 5
65. 5
64. 9

64. 0
64. 5
65. 3
65. 9

1965: I 5
II

541. 4
550. 4

383. 1
388. 7

12. 0
14. 5

39. 9
40. 1

18. 5
18. 6

16. 1
16. 4

71. 7
72. 1

73. 1
73.8

1
2 Includes

employer contributions for social insurance. (See also p. 4.)
Excludes farm profits of corporations engaged in fanning and therefore differs
from net farm income (including net inventory change) on p. 6 which includes
such
profits.
3
See Note, page 7.
4
Less than $50 million.




-1. 0
—.3
-1.7
-2.7
-1.5
-.3
~~"~ . O

.2
i
.3
-.4
-.3
4
(4)

.2
-1. 0
-1. 4
-1.7

6
Preliminary.
NOTE.—Series revised beginning 1929. For details, see Survey of Current Busiiic"s, August 11)65. Data for Alaska and Hawaii included beginning 1960.
Source: Department of Commerce.

SOURCES OF PERSONAL INCOME
Personal income increased by nearly $2 billion in July to a seasonally adjusted annual rate of $530.6 billion. The
largest changes were a rise of $2.3 billion in labor income and a drop of $1.0 billion in farm income from the exceptionally high June level.
BILLIONS OF DOLLARS

550

BILLIONS OF DOLLARS
550

500

500
TOTAL PERSONAL INCOME

WAGE AND SALARY DISBURSEMENTS

BUSINESS, PROFESSIONAL,
AND RENTAL INCOME

DIVIDENDS AND
PERSONAL INTEREST

FARM PROPRIETORS' INCOME
1959

I960

SOURCE: DEPARTMENT OF COMMERCE

Period
195G__ _
1957
1958
1959

ior»o
1:

liM'J
1963
__ _
1964
1964: May...
June
July____
Aug
Sept
Get
Nov
Dec
1965: Jan
Feb
Mar_.__
Apr
May___
June
July 4 ...

Total
personal
income
333.0
351. 1
361.2
383. 5
401.0
4.16. 8
442. 6
464.8
495.0
491.2
492.8
496. 1
499. 5
501.7
502.8
506.6
512.0
515.8
515.7
518.4
520.7
525.3
528. 8
530.6

1965
COUNCIL Of ECONOMIC ADVISERS

[Billions of dollars; monthly data at seasonally adjusted annual rates]
Wage
Proprietc3rs' income Rental
Personal Transfer
and
Other
Diviincome
interest
paysalary
labor
Business
dends
of
2
and proincome
ments
disburse- income
Farm
persons
1
fessional
ments
31.3
8.4
11.4
15.7
18.5
14.3
227.8
11.3
21.4
9. 5
32.8
17.6
238. 7
14.8
11.3
11.7
239. 9
33. 2
13.4
18.9
25.7
9. 9
15.4
11.6
258. 2
11.3
35.1
20.7
12.6
26.6
15.6
11.4
12.0
12.0
34. 2
13.4
23.4
270. S
15.8
28.5
278. 1
35.6
12.7
16.0
25.0
32.4
12.8
13.8
15.2
296. 1
37. 1
27.7
13.9
13.0
33.3
16.7
311.2
37.8
35.2
14.8
13.0
17.6
15.8
31.1
333. 5
39. 1
18.2
17.2
16.5
12.0
36.6
34.3
17.2
330. 9
16. 3
12.0
36.3
39.0
18.1
33.8
12. 1
332.1
16.4
18.2
34.1
17.3
36.0
39. 1
36.4
334. 3
11.8
18.3
17.4
16. 6
39.4
34.5
16.7
12.0
337. 1
18.3
17.3
36.4
39.3
34.8
12. 1
338.7
16.8
18.4
17.4
36.4
39.4
35.0
17. 0
12.0
18.4
339.4
39.4
17.5
35. 1
36.6
12. 2
35.2
17. 1
18.5
342.6
17.7
36.5
39.6
346.2
17. 1
12.4
35.5
37.0
18.5
18. 1
39. 9
17.2
12.4
35.7
*40. 1
347. 2
18.5
17.8
39.8
349. 8
12.0
39.9
36.0
37.4
17.3
18.5
17.8
352.2
36.2
17.4
37.6
18.5
17.8
11.7
40. 1
352. 7
12.9
17.4
40.0
18.6
18.0
36.5
37.8
37.4
17. 5
14.7
36.7
355. 2
18.6
18.1
40. 1
37.2
356. 9
15.9
18.6
37.0
17.6
40. 1
18.6
359. 2
40.2
37.2
17.7
14.9
18.6
18.5
37.5

1
Compensation of employees (see p. 3) excluding employer contributions for
social
insurance and the excess of wage accruals over disbursements.
2
Employer contributions to private pension, health, and welfare funds; compensation for injuries; directors' fees; military reserve pay; and a few other minor
items.
3
Personal income exclusive of net income of unincorporated farm enterprises,
farm wages, agricultural net interest, and net dividends paid by agricultural




1964

Less: Personal contributions
for social
insurance
5.8
6.7
6.9
7.9
9.3
9.6
10.3
11.8
12.4
12.3
12.4
12.5
12.5
12.6
12.6
12.7
12.8
13.0
13.0
13. 1
13.1
13.1
13.2
13.2

Nonagricultural
personal
income 3

318.5
336.6
344.3
368.5
385.2
400.0
425.5
447.4
478.7
474.8
476.3
479.9
483.1
485.5
486.5
498.4
495.3
499. 1
499.5
502.7
503.4
506.1
508.5
511.3

corporations.
4
Preliminary.
* Reflects stepped-up payments for veterans' insurance.
NOTE.—Series revised beginning 1929. For details, see Survey of Current
Business, August 1965. Data for Alaska and Hawaii included beginning 1960.
Source: Department of Commerce.

DISPOSITION OF PERSONAL INCOME
According to the revised series, disposable personal income rose $7 billion (seasonally adjusted annual rate) and
personal outlays—consisting of consumption expenditures, consumer interest payments, and personal transfer payments
to foreigners—increased nearly $8 billion. As a result, personal saving dropped about $1 billion to a rate of 5.0
percent of disposable income.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

500

450
DISPOSABLE PERSONAL INCOME
\

400

1800

1,800

I960

1959

1961

SOURCt, DICARIMI.NT Of COMMERCE

Period

Personal
income

1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964

2UO. 1
310.9
333. 0
351. 1
361.2
383. r>
401.0
416. S
4 12. 6
464. 8
495. 0

1964: T _ _ II __
III__
IV..
1965: ! _ _ _
II..

483.
490.
499.
507.
516.
524.

0
6
1
1
6
9

Less:
Personal
tuxes

32. 7
35. 5
31). S
42. 0
42. 3
40. 2
f>0. 1)
52. 4
57. 4
60. 9
59. 2

60.4
56.9
58.8
60.7

64.8
66.0

1963

1964

1965

COUNCIL OF ECONOMIC ADVISERS

Per earj ita disSaving
L<jss : Perso nal outlayfS
posable personal as perEquals:
Persoi lal consiiu iptiuii
PopulaEquals:
cent of
incc>me
Disex penditure
tion
Personal
disTotal
posable
saving
posable
(thoupersonal personal1 Durable
NonCurrent
1958
sands)
income outlays
durable Services
prices personal
prices
goods
income
(percent)
Billions of dollars
Dol I UTS
162, 388
6.4
1 IS. :;
2-11.0
•>2. S
257. 4
S5. 4
1,715
16. 4
1,585
165, 276
5.7
275. 3
251). f>
ID. 6
123. :;
1)1. 4
15. S
1,795
1,666
>S. 1)
7.0
168, 225
203. 2
272. (i
121). 3
DS. r>
20. (i
1,839
1,743
10. S
6.7
2S7. S
171,278
>OS. f>
135. o
105. 0
20. S
1,844
1,801
.
>
.
>
•
>
174, 154
290. 5
7.0
US. S
;7. i) MO. 2 1 12. 0
1, 831
1,831
177, 080
MS. 2
5.7
> 3 7 .' >
HO. 0
44. 3
J20. 3
3 , 905
11). 1
1,881
>5(). 0
533. 0
180, 684
45. 3
151. 3
4.9
12S. 7
1,883
17. 0
1 , 937
183, 756
44.2
M3.2
364. 4
135. 1
5.8
155.9
1,909
21. 2
1,983
*Sf>. 3
49. 5
162. 6
186, 656
143.0
5.6
503. 7
1,969
21.6
2, 064
189, 417
403. S
383. 4
53.4
168.0
5. 1
152.3
2, 132
2, 009
20.4
435. S
58.7
192, 119
409. 5
177.5
6.0
162.6
2, 116
26.3
2,268
Seaso nully adjiisted annilal rates
422. 6
57.4
399. 3
173.7
158.0
2,211
2,070
5.5
191, 160
23.3
433. 6
406.3
59. 1
175.7
161.2
6.3
2,111
191,780
27.3
2,261
440. 3
60.5
415.3
179.8
164.3
192, 478
2,134
5.7
25.0
2,288
446. 4
57.9
180.9
416.9
167.1
6.6
193, 182
2,311
2,146
29.5
451. 9
428.1
63.9
183.0
170.0
2,332
2, 159
5.3
193, 762
23.8
63.7
458.9
436.0
187.6
173.1
2,362
23.0
2,173
5.0
194, 298

i Includes personal consumption expenditures, interest paid by consumers
and personal transfer payments to foreigners.
3 See p. 2 for total personal consumption expenditures.




1962

NOTE.—Series revised beginning 1929. For details, see Survey of Current Business, August 1965. Data for Alaska and Hawaii included beginning 1960.
Sources: Department of Commerce and Council of Economic Advisers.

FARM INCOME
Net farm income, seasonally adjusted, rose sharply in the first half of 1965. The gain over a year earlier was $1 billion excluding inventory change and $1% billion including the effects of changes in inventories. Surging farm prices,
particularly for meat animals, was a major factor in the rise.
.

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
SEASONALLY ADJUSTED ANNUAL RATES

50

50
REALIZED GROSS
FARM INCOME

\
40

40

30

30

NET FARM INCOME
INCLUDING NET INVENTORY
CHANGE

20

20

\
10

10

1959

1960

1961

1963

1962

1964

COUNCIL OF ECONOMIC ADVISERS

SOURCE, DEPARTMENT OF AGRICULTURE

Personal income re ceived by
total ]Farm popu lation

]income re ceived fro m farming

Realize d gross
Period

1956
1957
1958
1959
1960
1961
1962
1963
1964

From
all
sources

17.8
17.7
19. 5
18. 1
18.7
19. 0
19.2
18.7
17. 9

1964: I
II
III
IV

1965: I
II

From
From
farm nonfarm
sources sources

11.2
11.0
12. 8
11. 0
11.4
12. 1
12.2
12. 0
11. 1

6.6
6.6
6.7
7.1

7. 2

6.9
7.0

6. 7
6. 8

Cash
receipts
l
from
Total
marketings
Billions c)f dollars
34.3
30.4
34. 0
29. 7
37. 9
33.5
37. 5
33.5
37.9
34.0
39.6
34.9
41. 0
36.2
42. 1
37.3
42. 2
36. 9
Seas on ally ad
42. 1
36.9
42. 3
37. 0
42.3
37. 0
42. 1
36.7
42.2
36.7
39.5
45. 0

1
Cash receipts from marketings, Government payments, and nonmoney income
furnished by farms.
2
Inventory of crops and livestock valued at the average price for the year.
Also,
see
footnote 2, p. 3.
8
Based on 1959 Census of Agriculture definition of a farm. The number of
farms is held constant within a year.




1965

Net tc) farm
open itors

Net inc ome per
farm incl uding net
inventoryr change *

Production ex- Exclud- Includpenses ing net in- ing net in- Current 1964 4
ventory ventory2 prices prices
change change
Dol lars

11.9
22.4
23.3
10. 7
25.2
12. 7
11.4
26. 1
26.2
11.7
12.6
27. 0
12. 5
28. 5
12. 5
29. 6
12.9
29.3
usted amnial rates
12.6
29. 5
29. 3
13. 0
29.2
13. 1
29. 0
13.1
12. 6
29.6
15.0
30.0

11.4
11.3
13.5
11.5
12. 0
12.9
13.1
13. 1
12. 1

2, 535
2,590
3, 189
2,795
3,043
3,389
3, 562
3,671
3,486

2, 786
2,755
3,357
2,911
3,137
3,494
3,635
3,708
3,486

12, 0
12. 1
12. 1
12.3
12. 1
14.6

3,460
3,480
3,480
3, 540
3, 580
4,320

3,460
3,480
3,480
3,540
3,540
4,240

4
Income in current prices divided by the index of prices paid by farmers for
family living items on a 1964 base.
NOTE.—Data revised; see Farm Income Situation, July 1965.
Source: Department of Agriculture.

CORPORATE PROFITS
Preliminary data for the second quarter indicate a further rise in corporate profits. According to the revised series
profits are estimated at seasonally adjusted annual rates of $73.8 billion before taxes and $44.4 billion after taxes
bringing the over-the-year increases to 141/2 percent and 20 percent respectively.

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

!^^^H^&^i^:.
CORPORATE TAXES?

30

20

10

10 —;

1962

1959

1965

•SEE NOTE ON TABLE BELOW.

-^EXCLUDING INVENTORY VALUATION ADJUSTMENT.

COUNCIL OF ECONOMIC ADVKIRS

SOURCEi DEPARTMENT OF COMMERCE

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

Period

1955
1956
1957
1958
1959
1960
1961
1962
1963
1964__ _ _ _
1964: T
11
III__
IV__
1965: I 4
1I __

Corp>orate pr ofits (befc>re taxes) and inven tory
Corj3orate pi ofits
valuation adjustmei it
a fter tax€5S
TransCorpoCorpoM anufactur ing
portation,
rate
rate
AU
comDiviUnprofits
tax
All
Nonother
Durable
munidistribindusdurable cations, indus- before liabil- Total dend
goods
payuted
taxes
ity
Total industries
goods
and
tries
ments profits
tries
public
utilities
(3)
(3)
(3)
(3)
(3)
46. 9
48.6
21.6
27. 0
10. 5
16.5
(3)
(3)
46. 1
48.8
27.2
21.7
15.9
11.3
( )
(33)
(3)
3
(3)
(3)
45. 6
47.2
21.2
26.0
14.2
11.7
()
( )
()
( )
(3)
(3)
( )
41. 1
41.4
19. 0
22.3
11.6
10.8
( )
(3)
(3)
( )
51. 7
52.1
23. 7
28. 5
15.9
12.6
( )
( )
(3)
(
)
(3)
(3)
(3)
49. 9
49. 7
23. 0
26.7
13.4
13.2
(3)
( )
(3)
(3)
(3)
50. 3
50.3
23. 1
27.2
13. 5
13.8
(3)
(3)
(3)
(3)
55. 7
55.4
24.2
31.2
15.2
16. 0
( )
(3)
(3)
(3)
(3)
58. 1
58.6
32.6
26.0
15.8
16.8
( )
(3)
(3)
64. 5
64. 8
37.2
27.6
17.2
19.9
( )
( )
( )
(3)
(3)
(3)
(3)
(3)
63. 6
64. 0
27. 3
36. 7
16.7
20. 0
( )
64. 5
64. 5
27. 5
37.0
17. 1
19.9
( )
( )
( )
( )
( )
65. 5
65.3
27. 8
37.5
17.4
20. 1
( )
( )
( )
( )
64. 9
65.9
28.
1
37.
8
17.7
20.0
( )
( )
( )
( )
( )
(3)
(3)
(3)
(3)
(3)
71. 7
73. 1
29. 1
44. 0
26.2
17.8
72. 1
73. 8
29.4
44. 4
18.2
26.2
( )
( )
( )
( )
( )
3

3

3

3

3

3

3

3

3
3

3

3

3

1

3

2

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

3

Includes depreciation, capital outlays charged to current accounts and accidental damages.
*3 Corporate profits after taxes plus corporate capital consumption allowances.
Data not yet available on revised basis.
4
Preliminary.


52-329°—-65


3

3

Corporate
capital
consumption
allowances *

17.4
18.9
20. 8
22. 0
23.5
24.9
26.2
30. 1
32. 0
34.0
33.2
33.6
34.3
34. 8
35.4
35.8

Profits
plus
capital
consumption
allow-3
ances

44.4
46.1
46.8
44.3
52.0
51.6
53.5
61.3
64. 5
71.2
69. 9 '
70.6
71. 8
72.6
79.4
80.2

NOTE.—Series revised beginning 1929. For details, see Survey of Current
Business, August 1965.
Data beginning 1962 adjusted for effects of new depreciation guidelines ($2Ji
billion for 1962) and therefore not comparable with previous data. Data for
Alaska and Hawaii included beginning 1960.
Source: Department of Commerce.

GROSS PRIVATE DOMESTIC INVESTMENT
Gross private domestic investment declined $11/3 billion (seasonally adjusted annual rate) in the second quarter.
Fixed investment increased about $% billion while inventory investment declined $2 billion, according to the revised
series.

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
SEASONALLY ADJUSTiD ANNUAL RATES

100

100

80

80

GROSS PRIVATE
DOMESTIC INVESTMENT
60

40

40

PRODUCERS' DURABLE EQUIPMENT

RESIDENTIAL STRUCTURES

\

lUIIIIHIHIIIIUl,,,,,,,,

20

20

— -7
NONRESIDENTIAL STRUCTURES
»••»,

I

1959

I

1960

t

...I

!

I

I

I

1961

I

I

CHANGE IN BUSINESS INVENTORIES
I
I
I
I
!
I
(
I
1963

1962

I

I

1965
COUNCIL OF ECONOMIC ADVISERS

SOURCE. DEPARTMENT OF COMMERCE

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

Period

1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1964: I
II

III
IV
1965: I
II

Total
gross
private
domestic
investment

52. 6
51. 7
67. 4
70. 0
67.8
60. 9
75. 3
74.8
71.7
83.0
86. 9
92. 9
89.7
90. 9
92. 6
97.7
102.4
101. 1

Total
Total

52. 1
53.3
61. 4
65. 3
66. 5
62. 4
70. 5
71. 3
69. 7
77.0
81. 2
88. 1
86.5
86. 8
88. 8
90. 2
93.7
94. 4

NOTE.—Series revised beginning 1929. For details, see Survey of Current
Business, August 1965. Data for Alaska and Hawaii included beginning 1960.

8



Resid ential
struc tures

N<mresident ial

34.2
33. 6
38. 1
43. 7
46. 4
41. 6
45. 1
48. 4
47. 0
51.7
54. 3
60.5
58. 1
58. 9
61. 6
63. 5
66.0
66. 4

Structures

Producers'
durable
equipment

12.7
13. 1
14.3
17. 2
18.0
16. 6
16. 7
18. 1
18. 4
19. 2
19.7
21. 1
20. 7
21. 1
21. 1
21. 5
21.8
22.7

21.5
20.6
23. 8
26. 5
28. 4
25. 0
28. 4
30. 3
28. 6
32. 5
34, 6
39.4
37. 5
37.9
40. 5
42. 0
44. 2
43.7

Total

18. 0
19. 7
23. 3
21.6
20. 2
20. 8
25.5
22. 8
22. 6
25. 3
26. 9
27. 5
28. 4
27. 9
27. 2
26. 7
27.7
28. 0

Source: Department of Commerce.

Nonfarm
17. 2
19. 0
22.7
20.9
19. 5
20. 1
24. 8
22. 2
22. 0
24. 8
26. 3
27. 0
27.8
27. 3
26. 6
26. 2
27. 1
27. 5

Change in business inventories

Total

Nonfarm

0. 4
-1. 5

— 2. 1

1. 3
-1.5

5. 1
.8
-2. 3

2. 0
6. 0
5. 7
4. 8

4. 9

6.0
4.7

4.8
3.6

3.3

4. 1
3.8

7. 5

8.7
6.7

1. 1

5.5

4.8
3.3
1.7
5.3
5.4
3.6

5. 1
4. 6
7.8
9.3

7. 1

EXPENDITURES FOR NEW PLANT AND EQUIPMENT
The May survey of plant and equipment expenditures reported business plans for spending $50.4 billion in 1965, up
slightly from the amount reported in the February survey and up 1 2 percent from the 1964 total.

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

1965

1959
Jj SEE NOTE 3 ON TABLE BELOW.
SOURCE, SECURITIES AND EXCHANGE COMMISSION AND DEPARTMENT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS

fBillions of dollars; quarterly data at seasonally adjusted annual rates]
M anufacturi ng

Period

Total i
Total

I9f3___
I9,
r>
(
19M
r

_ _

l .)fC>
]9.rr7

2S. 70

_

I9, x

2,S 32

20. S3
35. os

_
.

19f9
1900
1961
1962
1963 _ __
1964_3 _
1965
1964: III
IV

1965: I
118.

III 3

IV 3

'Ml 96

30. r>3
32. 5-1

__

_

__ _

35. 68
34. 37
37. 31
39. 22
44. 90
50.40
45. 65
47. 75
49.00
49.60
50.80
52. 10

11. 91
11. 01
11. <H
14. 95
].r>. 96
11. 43
12. 07
14. 48
13. 68
14. 68
15. 69
18. 58
21.78
18. 85
20. 15
20.75
21.25
22.35
22.55

Durable Nonduragoods
ble goods
5. 65
f>. 09
5. 44
7. 02
S. 02
5. 47
5. 77
7. 18
6. 27
7.03
7. 85
9. 43
10.89
9. 60
10. 15
10.40
10.45
11.20
11.45

1 Excludes agriculture.
2 Commercial and other includes trade, service, finance, communications, and
construction.
s Estimates based on anticipated capital expenditures as reported by business
in late April and May 1965. Includes adjustments when necessary for systematic tendencies in anticipatory data.
NOTE.—Beginning 1959 all quarterly data are rounded to nearest $50 million.




Transpo rtation

6. 26
5. 95
6. 00
7. 33
7. 94
5. 96
6. 29
7. 30
7.40
7. 65
7. 84
9. 16
10.89
9. 20
10. 00
10.40
10.85
11.20
11. 10

Mining
Railroads
0.99
. 98
. 96
1. 24
1. 24
. 94
.99
. 99
. 98
1. 08
1. 04
1. 19
1.32
1. 20
1. 30
1.25
1.30
1.35

1.31
. 85
. 92
1. 23
1. 40
. 75
. 92
1.03
. 67
. 85
1.10
1. 41
1.63
1. 50
1. 55
1.75
1.45
1.50

Other
1. 56
1. 51
1. 60
1. 71
1.77
1. 50
2. 02
1. 94
1. 85
2. 07
1. 92
2. 38
2.64
2. 40
2.60
2.55
2.75
2.50
29. 55

Public
utilities
4.55
4. 22
4. 31
4. 90
6. 20
6.09
5. 67
5. 68
5. 52
5. 48
5. 65
6. 22
6.67
6.30
6.35
6.80
6.60
6.60

Commercial and
other 2
8. 00
8. 23
9. 47
11. 05
10. 40
9. 81
10. 88
11. 57
11. 68
13. 15
13. 82
15. 13
16.36
15. 40
15. 80
15. 85
16.20
16. 50

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 of the Department of Commerce, principally because the 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

The civilian labor force rose by 505,000 in July, but this was more than offset by an increase of 648,000 in employment on a seasonally adjusted basis. Most of employment and labor force gains occurred among teenagers.
MILLIONS OF PERSONS*

MILLIONS OF PERSONS*
SEASONALLY ADJUSTED

TOTAL LABOR FORCE75

CIVILIAN LABOR FORCE

75
70

70

65

TOTAL EMPLOYMENT

60

65

t- .*.«

60

NONAGRICULTURAL
EMPLOYMENT

55

55

10

10
AGRICULTURAL EMPLOYMENT

UNEMPLOYMENT
i I i i i i i i i i i

I t 1

I I 1

| !

PERCENT OF CIVILIAN LABOR FORCE

PERCENT OF CIVILIAN LABOR FORCE

sEA S<D^IA inr &c JL ST .D

UNE/v\l>L DY MEt^T RA TE

Tl nhi

TTn

'T

19 59

~
1

-

- -~ —.~~
r-

~

-i

-i

n

961

196 3

"-

n n

-

1
1

196 3

96 2

nh
l

- 4

96^

19 6-<1

*J4 YEARS OF AGE AND OVER.
SOURCE, DEPARTMENT OF LABOR

Civilizin employ ment

Total
labor
force
Non- Unem(includployagriing
ment
Total
cularmed
tural
forces)
Thous ands of i>ersons 14
66, 681 60, 958 3,931 73, 126
66, 796 61, 333 4,806 74, 175
67, 846 62, 657 4, 007 74, 681
68, 809 63, 863 4, 166 75, 712
70, 357 65, 596 3,876 76, 971
Unadj usted

years of age and o ver
70, 612 66, 681 5,723 60, 958
71, 603 66, 796 5,463 61, 333
71, 854 67, 846 5, 190 62, 657
72, 975 68, 809 4, 946 63, 863
74, 233 70, 357 4,761 65, 596
easonally adjust ec1

77, 490
79, 389
78, 958
78, 509
76, 865
77, 112
76, 897
76, 567

71, 101
71, 953
72, 405
72, 104
70, 805
71, 123
70, 793
70, 375

66, 094
66, 100
66, 586
66, 704
65, 575
65, 997
66,248
66, 590

3,640
4,692
3,813
3,654
3,317
3,252
3,373
3,466

77, 225
77, 049
76, 928
77, 006
77, 023
76, 996
77, 140
77, 432

74, 477
74, 305
74, 188
74, 255
74, 280
74, 259
74, 409
74, 706

70, 639
70, 345
70, 496
70, 458
70, 465
70, 379
70, 755
71, 004

75, 699
76, 418
76, 612
77, 307
78, 425
80, 683
81, 150

68, 996
69, 496
70, 169
71, 070
72, 407
73, 716
74, 854

65, 257
65, 694
66, 180
66, 597
67, 278
68, 094
69, 228

3,996
4, 218
3,740
3, 552
3,335
4,287
3,602

77, 621
77, 755
77, 647
78, 063
78, 127
78, 856
78, 874

74, 914

71, 284
71, 304

4,513
4,595
4,650

71, 717
71, 937
72, 118
72, 766

4,958
4, 659
4, 674

Period

Total
labor
force
(including
armed
forces)

1960___
1961___
19622__
1963...
1964__

73, 126
74, 175
74, 681
75, 712
76, 971

1964:
May.
June.
July.
Aug_
Sept.
Oct__
Nov_
Dec_
1965:
Jan..
Feb.
Mar_
Apr_
May_
JuneJuly.

COUNCIL OF ECONOMIC ADVISERS

1
2

Civilisin emplo yment
Civilian
labor
force

75, 051

74, 944

75, 377
75, 443
75, 676
76, 181

Total labor force as percent of noninstitutional population.
Not strictly comparable witb preceding data. See Employment and Earnings, May 1962, p. XIV.

10



XT

Total

71, 440

Agricultural

4,849
4,826

4,864

4,817
4,815
4,721
4,671
4,541

4,843

JNonagricultural

Unemp] oyment '
rate (pe rcent of
Unem- civiliaii labor
for ce)
ployment
Unad- Seasonadjusted ally
justed

Labor
force
participation
rate,
unadjusted *

Percent

3, 931
4,806
4,007
4, 166
3,876

65, 790
65, 519
65, 632
65, 641
65, 650
65, 658
66, 084
66, 463

3,838
3,960
3,692
3,797
3,815
3,880
3,654
3,702

66, 771
66, 709
66, 890
66, 874
66, 979
67, 459
68, 092

3,630
8, 747
8,504
3, 660
3,506
8,558
3,415

5. 6
6. 7
5. 6

58. 3
58. 0
57. 4
57.3
57.4
. ,|

5.7
5.2

4.9

6. 1
5. 0
4.8
4.5

4. 4
4. 5

5.2

5. 8
6. 0
5. 1
5. 1
5. 2

4.9

4.7

5.0

5.5

4.8
5.0
4.7
4.9
4.6
4-7

5. 7
5. 1
4. 8

4.4

5. 5

4.6

NOTE.—Beginning 1960, data include Alaska and Hawaii.
Source: Department of Labor.

4.5

57.9
59.2
58. 8
58.4
57. 1
57.2
57.0
56.7
55.9
56.4
56. 5
56.9
57.7
59. 3
59.6

SELECTED MEASURES OF UNEMPLOYMENT AND PART-TIME EMPLOYMENT
The seasonally adjusted over-all unemployment rate fell to 4.5 percent in July.
ployment since October 1957.

This is the lowest rate of unem-

PERCENT
10.0
SEASONALLY ADJUSTED

8.0
LABOR FORCE TIME LOST THROUGH UNEMPLOYMENT
AND PART-TIME WORK

6.0

UNEMPLOYMENT RATE, EXPERIENCED
WAGE AND SALARY WORKERS

v— \

4.0

4,0

2.0

2.0

1959

1962

1963

SOURCE< DEPARTMENT Of IABOR

Labor
force
time lost
,,
through
unemenced Married
Over 40
All
men
ployment
wa^o
and
workers salary
(wife and part- hours
timel
workers present) work
I V r cent
f). C,
('). 7

1960
1961

1962__ _ _ _
1963
1964

r>.r r.
> *"*
f>. '2

r. 7
i. S
.rr. r>,r. o

:*. 7
4. 6
;>. c»
:*. 4
'2. S

6. 7
8. 0
(i. 7
1
6. 4

r>. 8

17, 664
18, 210

19,025
19, 257
19, 294

Soasonall v adjuster
1964: Julv
Aim;

Sept
( )ct
Nov
Dec
1965: Jan
J'V1>

Alar

Apr
May

June
Jnlv




f>. 0
-r). 1

r>. i
r>. i*
'1. i)
r>. o

4 .S

r>. o

•1.7
-1 <)
'J.(i
4.7

4. f)

1965
COUNCIL Of ECONOMIC ADVISERS

I J n e r iploymen . rate
(percen (, of civili: in labor
for co HI i!,roi P)

Period

1964

•1. S
•1 '.)
•1. '.)

r>. o

'1. 7

2. 7
2. (»
2. 8
2. <)
2. 4
2.6

5.7

5. 7
5. 7
5. 7
5. 2

'1 . f>
4. r>
4. (i
4. :;r
•i. . )J

2. 7
2. f>
2. f)

5. ;;

4.7
4 . '2

2. 4
--_ : ^

5. 1
5. 5
f>. 2

4. L

<)

r

2. r>

5.o
5.3

5. 4
5. 1

19, 195
19, 159
15, 079
20, 284

19,358
21, 251
20, 264
20, 018

20,612

18, 499

21,;}51
20, 856
20, 244

Persons at work in nonagri cultural 2iridustries
by hours worked f >er week
Urider 35 hours
35-40
hours

Part-ti me for
economi c reasons
Total

Part-ti me for
economi 3 reasons

Usually Usually Usually Usually
partfullpartfulltime 4
time 8
time 4
time 3
Thousan ds of pers ons 14 ye ars of age and over
28, 724 11, 528
1, 243
1,317
1,297
1, 516
29, 047 11, 132
1,049
28. 853 11, 675
1, 288
29, 422 11, 856
1, 219
1,070
29, 127 13, 850
985
1, 151
IJnadjustec 3
Seasonal!]7 adjusted
1,510
878
29, 450 10, 476
981
1,173
904
1, 503
900
1,177
30, 053 10, 284
1, 056
965
18, 907 28, 157
953
1,155
1,137
29, 065 13, 857
935
988
961
1,052
975
27,757 16,913
926
897
1, 021
31,066 12, 298
968
1,044
1,088
1,000
979
1,078
1,128
31, 166 11,681
982
952
927
30, 110 13, 165
1,045
1,082
877
3 1 , 3 7 1 11, 981
998
910
921
862
818
1,007
29, 187 1 6, 1 1 7
892
31, 654 11,966
950
945
936
1,292
11,462
32, O i l
966
944 5
1,036
5
30, 295 10, 778
1,466
977
1, 139
874

UNEMPLOYMENT INSURANCE PROGRAMS
In July, insured unemployment under State programs averaged 211.000 less than in July 1964.
ployment rate increased slightly to 3.0 percent in July on a seasonally adjusted basis..

MILLIONS OF PERSONS

The insured unem-

MILLIONS OF PERSONS
WEEKLY INSURED UNEMPLOYMENT
(STATE PROGRAMS)

/

1964

r r r

1

JAN.

LJ—! i • t - i I \_ i_ i_ 1_ i_ L_J_ i I ,
APRIL
MAR.
MAY
JUNE

FEB.

i i » i I • !• i i I i_ i_ i_ i_ I_ i
JULY

AUG.

SEPT.

•HEE NOTE 2 OH TABLE BELOW.
SOURCEi DEPARTMENT OF LABOR

Period

1961
1962
1963
1964
_
1964: June
July
Aug
Sept
Oct.
Nov
Dec.
1965: Jan
Feb
Mar
Apr
May
June
July »
Week ended:
1965: July

10
17
24
31
Aug 7 1
14 i

12

NOV.

DEC.

COUNCIL OF ECONOMIC ADVISERS

A 11 progranis
Insured Total
unem- benefits
Covered ploypaid
(milemploy- ment
lions
(weekly
ment
averof dollars)
age)
Thou sands
2,994
46, 264
47, 766 2 1, 924
48,
435
1, 973
1,753
-. 1 49, 295
1,448
50,
151
1
1,491
50, 349
1
1,396
50, 678
1
1,256
50, 771
1,264
1,417
1,801
2, 135
_
2,066
1,863
1,622
._
1,316
1,182
1,256

1, 298
1,296
1,238
1,221
1,225

4, 358. 2
3, 160. 0
3, 025. 9
2, 749. 2
199. 3
195. 6
180.2
163. 7
157. 8
162. 0
230. 4
273. 0
265. 8
294. 9
242.7
179. 2
169. 1
168.0

Insured
unemployment

Initial
claims

Staite progra ms
Insurec unemploymen t as perExhaus- cent of eovered
emplo yment
tions
SeasonUnad- ally
adjusted
justed

Weekly £iverage, t lousands
2, 290
350
46
32
302
1, 783
2
2
294
30
1, 806
1,605
26
268
1,297
218
27
282
24
1,343
212
23
1,261
21
194
1, 125
225
20
1, 138
20
276
1,293
22
348
1, 675
25
355
1,996
1,932
25
269
222
25
1,718
27
1, 470
220
24
186
1, 179
22
1,059
191
22
252
1. 132

1,
1,
1,
1,
*1,

i2 Preliminary.
*Not charted.
Programs include Puerto Rican sugarcane workers for initial claims and
Insured unemployment beginning July 1963.




OCT.

172
171
116
100
105

307
256
232
217
245
219

Pensent
5. 6
4. 4
4. 3
3.8
3. 1
3. 1
2.9
2.5
2.6
3.0
3.9
4. 6
4.5
4, 0
3.4
2.7
2.4
2.6

8. 6
3. 6
3.
5/
<n

3. 4

3.4
8.4
3. 6
3.4

3. 3
3. 2
3. 1

2.9
2.9
8.0

Benefil DS paid
Total Average
(milweekly
check
lions of
dollars) (dollars)

3,
2,
2,
2,

422. 7
675. 4
774. 7
522. 1
183. 1
180.5
164.5
148.4
143.2
147.0
211. 4
252. 1
245.7
273.4
224.9
165.7
156.3
155.0

33. 80
34, 56
35.27
35. 96
35.27
35. 35
35. 60
35.40
35.92
36.38
36. 81
37. 18
37.39
37.41
37. 16
36. 40
36.07
36. 15

2.7
2.7
2.5
2.5
2.5

NOTE.—For definitions and coverage, see the 1964 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
Nonas'ficuiturg'l payroll employment rose by 166,000 (seasonally adjusted) in July. Gains in durable goods manufacturing (110,000), trade (44,000), and the service industries (64,000) were partially offset by losses in nondurable
goods manufacturing (—17,000) ana contract construction (—51,000).
MIL JONS OF WAG E
AN!5 SALARY WOR KERS
64

MIL!JONS OF WAGE
AN D SALARY WORKERS
20

(SEASONALLY' ADJUSTED DATA)

18

60

16

56

__4^^^
^^
^
^s**\*

TOTAL

10

x—-^—

52

s -

_.. _—.„-.

.1 1 1 1 1 1 1 1 1 1 . 1 1 1 1 1 f 1 II It 1 1 1 1 1 1 1 1 1 1 1 . . . . . i . . in.
1962

1963

*«*— ^ —

-=^=

6 • •i i i 1 1 i •, , ...i.i.....
1963
1962

1965

1964

-

NON DURABLE GOODS> INDUSTRIES
V

8

^

-—.^

_

DURAB LE
GOOD
1NDUSTR IES

12

r

54

ADJUSTED DATA)

MANUFAC1•URiNG

ALL NON>\GRICULTUR>M. ESTABLISH MENTS
62

58

(SEASONAL^

1965

1964

•'

13.0

4.0

CONTRAC1r

CONSTRUCTION

WHOLESAL E AND RETAill TRADE

(ENLARGED SCALE)

35

125

(ENLARGED SCALE)

S*/^

_xv
^v-v

3.0

/~

1^

Z5

2.0

1962

1

1963

r^

^/
12.0

.^

*]

115 'S^~

1 1 1 1 1 1 1 1 1 1 1 .i 1 1 1 i li i 1 1 y
1964
1965

11.0

f

f^—~

1

i i i . i i i i i i i \ i i\ \ \ i ii ii
1962

1963

1964

1965

COUNCIL C>P f CONOMIC ADVISERS

SOURCEi DEPARTMENT Of LAtC«

Thousands of wage and salary workers; J seasonally adjusted]

N onmanul racturing; (private])

Manufac turing (iprivate)
Period

Total

1958
1959
1960
1961
1962
1963
1964 _ _
1964: JuneJuly ~
Aug__
Sept..
Oet__
Nov..
Dec__
1965: Jan..
Feb__
MarApr..
MayJune 2
July 2

51, 368
53, 297
54, 203
53, 989
55, 515
56, 643
58, 188
58, 104
58, 256
58, 301
58, 458
58, 382
58, 878
59, 206
59, 334
59, 676
59, 992
59, 913
60, 110
60, 362
60, 528

Total

NonDurable durable
goods goods

15, 945
16, 675
16, 796
16, 326
16, 853
17, 005
17, 303
17, 285
17, 344
17, 339
17, 449
17, 171
17, 505
17, 622
17, 705
17, 772
17, 849
17, 896
17, 915
18, 040
18, 133

8,830
9,373
9,459
9,070
9,481
9,625
9,848
9, 826
9,890
9,886
9,986
9,702
9,992
10, 088
10, 150
10, 210
10, 259
10,311
10, 320
10, 423
10, 533

7, 116
7,303
7,336
7,256
7,372
7,380
7,455
7,459
7,454
7,453
7,463
7,469
7,513
7,534
7,555
7,562
7,590
7,585
7, 595
7,617
7,600

Total

Contract
Mining construc-

27, 584
28, 539
29, 054
29, 069
29, 772
30, 439
31, 382
31, 349
31, 461
31, 491
31, 500
31,615
31, 713
31, 892
31, 922
32, 162
32, 352
32, 182
32, 331
32, 398
32, 463

1
Includes all full- and part-time wage and salary workers in nonagricultural
establishments who worked during or received pay for any part of the pay period
which includes the 12th of the month. Excludes proprietors, self-employed persons, domestic servents, and personnel of the armed forces. Total dterived from
this table not comparable with estimates of nonagricultural employment of the
civilian labor forces, shown on p. 10, which include proprietors, self-employed
persons, and domestic servants; which count persons as employed when they




751
732
712
672
650
635
635
639
639
634
634
638
639
637
633
635
633
629
629
631
635

2,778
2,960
2,885
2,816
2,902
2,983
3, 106
3, 106
3, 107
3,103
3,080
3, 106
3, 162
3,244
3,235
3,281
3,304
3,186
3,207
3,210
3,159

Transportation
and
public
utilities
3,976
4,011
4, 004
3,903
3,906
3,914
3,976
3,965
3,983
3,999
4,005
3,996
3,997
4,020
3,939
3,997
4,042
4,044
4,057
4,067
4,063

Gover nment

Whole- Finance,
insur- Service
sale
and Federal State
ance,
and
and
and
miscellocal
retail
real
laneous
trade
estate
10, 750 2,519 6,811 2,191
5, 648
11, 127 2, 594 7,115 2,233
5, 850
11, 391 2,669 7,392 2,270
6,083
11, 337 2, 731 7,610 2,279
6,315
11, 566 2,800 7,947 2,340
6,550
6,841
11, 803 2,873 8,230 2,358
12, 188 2,944 8,533 2,348
7,155
12,187 2,943 8,509 2,323
7,147
12, 223 2,948 8,561 2,322
7,129
12,231 2,951 8,573 2,328
7,143
12, 229 2,960 8,592 2,320
7, 189 ,
12, 278 2,964 8,633 2,331
7,265
12, 311 2,970 8,634 2,354
7,306
12,362 2,975 8,654 2, 352
7,340
12, 447 2,979 8,689 2, 342
7,365
12, 532 2,987 8,730 2,335
7,407
12, 622 2,997 8,754 2,340
7,451
12, 563 2,997 8,763 2,344
7,491
12, 636 3,005 8,797 2,345
7, 519
12, 663 3,011 8,816 2,352
7,572
12, 707 3,019 8,880 2,352
7,580

are not at work because of industrial disputes;; and which are based on an enumeration of population, whereas the estimates in this table are based on reports
from employing establishments.
2 Preliminary.
NOTE.—Beginning 1959, data Include Alaska and Hawaii.
Source: Department of Labor.

13

HOURS OF WORK - SELECTED INDUSTRIES
Seasonally adjusted, the average workweek in manufacturing and contract construction was unchanged in July. The
manufacturing workweek was 0.4 hours higher than in July 1964 and the contract construction workweek was 0.3 hours
higher.
HOIJRS PER WEEK ( SEASONALLY
46

HOIIRS
46

ADJUST ED)

DURABLE k \ANUFACTUR ING

PER WEEK (

SEASONALLY ADJUST! D)

NONDURA BLE MANUFA CTURING

44

44

r^—

42

X
X^^""

'^^

40

42
40

38

38

36

36

34

, , , , ! . • • • .

,,,,,,

.... . t ., . . . , , , , , ,
1963

1962

42

1964

1965

n

34 J . . , . 1 , , , , ,
1962

34

V^5

a-t-J-1-.a i i i m
1965

1964

1963

RETAIL TR/^DE

iT^v

/

40

SA-

rA^Vr/^^1
^
'
HV/

36

fiB

42

p-^

38

V- 1-

44

RON

CONTRACT CONSTRUG
40

~**^-***~*-\^

,—v^

38

**

• *•i

* "-*

i^j
pa^ni^^a

r—-^^

36
34

32
30 *u > * * * 1 1 1 1 1 1
1962

..1-l-lJ 1, ! 1 1.1.1 V

1963

1964

32

,,,,,,,,,,

, , , , , ! , , , , ,

1963

1962

1965

SOURCE, DEPARTMENT OF LABOR

. . . . . i .....
1964

1 M 1 l i t 1,1,1 L~

1965

COUNCIL C f ECONOMIC ADVISERS

[Average hours per week; 1 seasonally adjusted]
Martufacturing Indus tries

Period

Durable
goods

1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1964: June
July

Aug

Sept
Oct

Nov
Dec
1965: Jan
Feb

Mar
Apr
May 2

June _
July 2

_ _

-. __

39.6
40. 7
40. 4
39. 8
39. 2
40. 3
39. 7
39. 8
40. 4
40.5
40. 7
40. 6
40. 6
40. 8
40.5
40. 5
40.9
41. 2
41. 4
41.3
41. 4
40.9
41. 1
41.0
41.0

1
Data relate to production workers or nonsupervisory employees. Data for
Alaska and Hawaii included beginning 1959.

14



40. 1
41.3
41. 0
40. 3
39. 5
40. 7
40. 1
40.3
40. 9
41. 1
41. 4
41. 4
41. 3
41. 5
41. 4
41. 2
41. 6
42. 0
42. 2
42. 0
42. 3
41. 7
41. 9
41.9
41.8

Nondurable
goods

39.0
39.9
39. 6
39.2
38.8
39. 7
39. 2
39. 3
39.6
39.6
39.7
39.6
39. 5
39.7
39.4
39. 9
40. 0
40. 0
40. 1
40.2
40. 2
39.8
40.0
39.8
39.8

2
Preliminary.
Source: Department of Labor.

Contract construction

37. 2
37. 1
37.5
37.0
36.8
37.0
36.7
36. 9
37.0
37.3
37.2
37.3
36.8
37.0
35.6
37. 1
37.7
39.0
37.5
37. 4
37. 5
36.9
37.7
37.1
37. 1

Retail trade

39.7
39.6
39.1
38.7
38.7
38.7
38.5
38.1
37.9
37.8
37. 4
37.5
37.7
37. 5
37. 3
37. 5
37. 3
37. 3
37. 1
37. 2
37. 1
37.3
37. 1
37. 1

AVERAGE HOURLY AND WEEKLY EARNINGS - SELECTED INDUSTRIES
Average weekly earnings of production workers in manufacturing were $107.68 in July or $4.71 higher fhan a year
earlier.

DOLLARS

DOLLARS

3,00

2,80

2.60

2.40

2,20

2.00
1962

1965
COUNCIL OF ECONOMIC ADVJSIRS

SOURCI. DEPAtTMENT OF IA»O*

[For production workers or nonsupervisory employees]

Period

1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1964: Junc_.
July__
Aug__
Sept.Oct..
Nov__
Dec._
1965: Jan...
Feb..
Mar_ _
Apr..
May__
June 3 July'.

Avern ge hourly earnings-— current prices

Aver age weekl.y earnings —current prices

Manufi icturinp iiid ustrics Contract
Retail
conNonDurable durable
trade
strucAll
goods
tion
goods

Manufi icturing iiidustries Contract
Retail
conNonDurable durable
trade
strucAll
goods
tion
goods

1. 99
2. 08
2. 19
2. 2(5
2. 36
2. 43
2. 49
2. 56
2. 64
2. 71
2. 71
2. 71
2. 71
2. 75
2. 70
2. 73
2.77
2.77
2. 77
2. 78
2.78
2.80
2.80
2.80

1. 86
1. 95
2. 05
2. 11
2. 19
2. 26
2. 32
2. 39
2. 46
2. 53
2. 53
2. 53
2. 52
2. 57
2. 53
2. 56
2. 58
2.59
2. 59
2. 60
2.60
2.61
2.62
2.62

1
Earnings in current prices, adjusted
2

1. 67
1. 77
1. 85
1. 91
1. 98
2. 05
2. 11
2. 17
2. 22
2.29
2. 29
2. 29
2.29
2. 32
2. 30
2. 31
2. 32
2.33
2. 33
2. 34
2.34
2. 35
2.35
2.37

2. 45
2. 57
2. 71
2. 82
2.93
3. 08
3. 20
3. 31
3.41
3.55
3.49
3. 53
3. 54
3. 58
3.61
3. 56
3. 62
3.62
3. 68
3. 65
3.60
3. 65
3.65

1.34
75. 70
1. 40
78.78
1. 47
81. 59
1. 52
82. 71
1. 57
88. 26
1. 62
89. 72
1. 68 92. 34
96. 56
1. 74
1. 80
99.63
1.87 102.97
1. 87 103. 48
1. 87 102. 97
1.87 103. 07
1.89 104. 60
1.89 102. 97
1. 89 104. 70
1. 87 106. 81
1.92 105. 93
1. 92 105. 93
1. 92 107. 12
1.93 105. 82
1. 95 107. 53
1.95 108. 21
107, 68

to exclude overtime and interindustry shifts.
Earnings in current prices divided by the consumer price index on a 1964 base.
* Preliminary.
52-329°—65




3

82. 19
85. 28
88. 26
89. 27
96. 05
97. 44
100. 35
104. 70
108. 50
112. 19
113. 01
111. 92
112. 47
114. 13
111. 51
113. 57
117. 17
115.51
115. 51
117. 04
115.65
117.88
118. 16
117.04

66. 63
70. 09
72. 52
74. 11
78. 61
80. 36
82. 92
85. 93
87. 91
90. 91
91. 37
91. 14
91. 83
91.87
92. 00
92. 17
93.26
92.50
92. 73
93. 60
92.20
94. 00
94.24
95. 04

90. 90
96. 38
100. 27
103. 78
108. 41
113. 04
118. 08
122. 47
127. 19
132. 06
133. 32
134. 49
136. 64
131. 03
138. 62
131. 36
133. 22
131.41
131. 01
133. 59
132. 12
139. 80
138. 70

53.06
54. 74
56. 89
58.82
60. 76
62. 37
64. 01
65. 95
68.04
69. 94
70. 50
71. 62
71. 43
70. 50
70. 31
69. 74
70. 31
70.85
70. 85
70. 66
71.60
71. 96
72.74

Manufac turing
indust ries
Adjusted Average
weekly
earnings, earn1957-59= ings,
1964
lOOi
prices 2
86. 9 $87. 72
91. 5
89. 93
96. 2
89. 96
100. 2
88. 74
103. 5
93.99
106. 8
94.05
109. 8
95.79
112. 5
99.04
115.4 100. 94
118.4 102. 97
118. 3 103. 58
118. 3 102. 76
118. 3 102. 97
119. 3 104. 29
118. 6 102. 56
119. 2 10408
119. 7 106. 17
120.0 105. 19
120.2 105. 19
120. 4 106. 27
120.7 104. 67
120. 9 106. 05
121. 1 106. 19

NOTE.—Beginning 1959, data include Alaska and Hawaii.
Source: Department of Labor.

15

PRODUCTION AND BUSINESS ACTIVITY

INDUSTRIAL PRODUCTION

The industrial production index (seasonally adjusted) rose nearly 1 percent in July. Output of equipment and of
materials was up about 1% percent while production of consumer goods was maintained at the June level. The total
index was 8 percent higher than in July 1964.

Index, 1957-59=100 (SEASONALLY ADJUSTED)
170

Index, 1957-59=100 (SEASONALLY ADJUSTED)
160

TOTAL
150

160

140
130
120

130

110

110

100 m M \ n n <
1962

M 1 1 H \ \\ n
1963

n n \ In u t
1964

n n i 11 i n i
1965

100

1965

1962
160

MARKET GROUPS
150
140
FINAL PRODUCTS

\

130
120

MATERIALS
110
100

1962

1964

1963

1965

1962

COUNCIL OF ECONOMIC ADVISERS

SOURCE. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Total
industrial
production

Period

1955
1956
1957
1958
1959
1960
._
1961
__.
1962
1963
19641
1964: June
July
Aug
Sept
Oct
Nov
Dec
1965: Jan
Feb

Mar__
Apr__
May
June
July *__
1

Preliminary.

16




_

__.

96. 6
99.9
100.7
93. 7
105. 6
108.7
109.7
118. 3
124.3
132. 0
131.6
132. 9
133. 8
134. 0
131. 2
135.0
137. 7
138.4
139. 1
140. 5
140.9
141. 4
142.4
143.6

1965

1964

1963

[1957-59 = 100, seasonally adjusted]
Industry
M,anufacturi ng
Non- Mining Utilities
Total Durable durable

Total

97. 3
100.2
100.8
93.2
106.0
108.9
109.6
118. 7
124. 9
132. 9
132.4
133. 9
134. 5
134. 9
131. 7
136.0
139. 1
140. 0
140. 6
142. 1
142.3
142. 6
143.8
145. 1

93.9
98. 1
99. 4
94. 8
105.7
109. 9
111. 2
119. 7
124. 9
131.5
131. 7
132. 3
133. 3
132. 5
130.3
134. 6
137.4
138. 0
138. 2
139. 5
139. 3
139. 9
140. 1
140.8

101.9
104.0
104.0
90. 3
105.6
108.5
107.0
117. 9
124. 5
133.2
133.2
135. 0
135. 7
135.2
129.4
136.7
140. 6
141. 9
142. 6
144. 7
145. 4
146. 5
148.0
149. 9

91.6
95. 4
96. 7
96.8
106. 5
109.5
112.9
119. 8
125. 3
132.4
131. 5
132. 5
133. 1
134. 4
134. 5
135.2
137.3
137. 6
138. 1
138.8
138. 4
137. 8
138.5
139.1

99. 2
104.8
104.6
95. 6
99. 7
101. 6
102. 6
105.0
107.9
110. 9
111. 4
110.9
111. 9
111. 9
112. 0
112.7
112.3
112. 1
111. 5
112. 5
113. 0
114.0
114.9
116.4

80. 2
87. 9
93. 9
98. 1
108. 0
115. 6
122. 3
131.4
140.0
150. 5
149. 7
151. 4
154. 5
153. 2
153. 8
152. 3
154.7
155. 6
157. 4
159. 2
160. 6
160.9
161.0
161.0

Mai*ket
Fi]Hal produ(;ts

Consumer
goods
93.3
95. 5
97. 0
96.4
106.6
111. 0
112. 6
119. 7
125.2
131.3
131. 5
132. 1
133. 1
132. 0
129. 2
133. 6
137.0
137. 9
137. 7
139. 3
138. 4
138. 1
137.9
137.9

Equipment

95.0
103. 7
104. 6
91. 3
104. 1
107. 6
108. 3
119. 6
124. 2
132. 0
132. 0
132.7
133. 6
133. 7
132. 6
136.8
138.3
138. 2
139. 4
140. 0
141. 1
143. 6
145.0
147.0

Source: Board of Governors of the Federal Reserve System.

Materials

99.0
101.6
101.9
92.7
105. 4
107. 6
108.4
117.0
123. 7
132. 5
131.8
133. 6
134. 7
135.6
132. 2
135.7
137.7
139. 1
139.7
141. 3
142.6
142.7
144.3
146.5

PRODUCTION OF SELECTED MANUFACTURES
Output of durable manufactures, paced by iron and steel and aircraft, scored a strong increase in July on a seasonally
adjusted basis. Production of most nondurables also increased somewhat.
Index, 1957-59=100 (SEASONALLY ADJUSTED)
180

Index, 1957-59 = 100 (SEASONALLY ADJUSTED)
180

120

100

80
1963

1962

1964

180

160

1964

1965

140

CHEMICALS, PETROLEUM*,
>**/
AND RUBBER
~s^^
^X^""""

140

120

J963

1962
160

*S^*^

TlDCTILES, APPARtt,
AND LEATHER
120

*•**

^

f

s^CX^*V*

--""**

•*»•«
-Tf"^
^

FOODS, BEYERAGES,
AND TOBAC CO

100

PAPERED
PRINTING
100

1 I! 1 1 1 I I f I I

1962

1 1 1 1 !

1 1 I 1 1 1

1963

1 f 1 ! 1 1 1 ! I ! 1

! 1 I 1 1 1 1 ! I1 1

1 f 111111111

1 1! t 1 I J ! ! 1

1964

1965

1962

1963

I

t ! ! 1 ! ! 1 1 1 1 1

1964

1 1 11 i 11 i 1 11
1965

COUNCIL OF ECONOMIC ADVISERS

SOURCE, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

[1957-59=100, seasonally adjusted]
Durab le manufaictures
Period

1955
1956
1957
1958
1959
1960
1961
1962
1963
1964 1
1964: June
*
July
Aug
Sept
Oct
No v_ ^
Dec _.
1965: Jars
Feb
Mar
Apr__
May_
June
July*
J

Preliminary.




Primary
metals
118.4
116. 4
112. 2
87. 5
100.4
101. 3
98. 9
104. 6
113. 3
128.2
126. 1
131. 2
132. 8
132. 8
131.8
134.6
137.9
139.6
136. 9
140.4
141.4
140.8
143. 7
148

No ndurable manufactu res

FabriTranspor- Lumber Textiles,
Machincated
and
tation
apparel,
ery
metal
prodequipand
ment
products
ucts
leather
98.3
98. 8
101. 5
92. 9
105. 5
107.6
106. 5
117. 1
123.4
132. 6
130. 6
133. 3
134.8
134. 3
130. 7
136.9
139.7
140.6
144. 9
145. 1
147.4
146.0
146. 7
148

96.5
107. 1
104. 2
88. 8
107. 1
110. 8
110. 4
123. 5
129. 2
141. 0
140. 1
141.9
142. 8
144. 1
144. 7
147.4
149. 3
150.4
152.3
153. 6
155.2
156.9
158. 6
161

102. 0
97.4
106. 4
89. 5
104. 0
108. 2
103. 6
118.3
127. 0
130.7
134. 9
134.3
135.3
130.9
105.3
129. 2
140. 3
141. 4
139. 7
144. 4
144.6
147.3
149. 2
150

109. 5
105.4
95.9
95. 6
108. 5
102. 1
101. 3
106. 1
108. 9
112.7
109.0
116. 1
114. 1
109. 7
110.8
109.2
105. 5
111. 9
115.6
120.5
114.2
117.1
113. 0

95. 5
98. 0
96. 9
95. 0
108. 1
107. 5
108.4
115. 1
118. 5
124. 8
122. 9
124. 9
126.0
126. 8
128. 4
130.2
131.4
132. 7
132. 8
132.7
133.6
133.4
133.7
134

Paper Chemicals, Foods,
and
beverpetroprint- leum, and ages, and
ing
rubber tobacco
92.5
97. 1
97. 8
97. 0
105. 2
109. 0
112. 4
116. 7
120. 1
127. 5
126.6
128.0
127.9
128.2
129. 2
128.0
131.7
131.2
131.8
132. 9
133.2
134.2
133.9
135

86. 8
91. 4
95.6
95. 5
108. 9
113. 9
118. 9
131. 2
141.8
152. 2
152. 1
152. 3
153. 6
156. 9
155.4
155.5
158. 3
158. 8
160. 4
162. 0
160.8
159.9
161.8
163

93. 1
96. 6
96.7
99. 4
103. 9
106. 6
110. 2
113. 3
116. 8
120. 6
119. 5
120. 5
120. 5
120.0
120. 9
122.7
123.7
123.5
123. 2
123.3
122.4
120.5
120. 8
121

Source: Board of Governors of the Federal Reserve System.

17

WEEKLY INDICATORS OF PRODUCTION
Auto and truck assemblies declined sharply in late July and early August as factories prepared for model changeovers.
Steel output picked up in early August following small declines during most of July.
.
MILLIONS OF SHORT TONS (DAILY AVERAGE)

MILLIONS OF TONS

J

F

M

A

M

BILLIONS OF KILOWATT HOURS

N

D

f

M

A

M

A

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

Period
Weekly average:
1958... ____...__..._
1959....
1960
1961_____._
—_
1962.. __
1963
1964
1964: June
July..
Aug
Sept.
___
Oct.
Nov
__
Dec^
1965: Jan
Feb
Mar__
Apr
..
May
June
July*
Week ended:
1965: Julv 10
.__
17
__
24
_._
31
...
Aug 7 2
142

18

O

N

D

Electric Bituminous Freight Paperboard
Car 3 and triicks
Steel pi"oduced
power
coal mined
produced assembled (thoiisands)
loaded
Index
Thousands
distributed (thousands (thousands
(thousands
of net
(1957-59= (millions of
of short
Total Cars Trucks
of cars)
of tons)
100)
tons
kilowatt-hours) tons), *
1, 635
1,792
1,899
1,880
1,886
2,096
2,431
2,374
2,286
2,374
2,493
2,611
2,632
2,627
2,671
2,716
2, 787
2,789
2, 712
2,702
2,616

87. 8
96.2
101.9
100. 9
101. 2
112.5
130. 5
127. 4
122. 7
127.4
133. 8
140.2
141. 3
141. 0
143. 4
145. 8
149. 6
149.7
145.6
145. 1
140.4

12, 082
13, 297
14, 424
15, 139
16, 325
17, 490
18, 728
18, 948
19, 546
19, 470
18, 867
18,268
18,685
19, 536
20,348
20, 160
19,728
18, 896
19, 314
19,842
20, 833

1, 380
1,380
1, 390
1,353
1,414
1,535
1,614
1,678
1,720
1, 613
1, 731
1,683
1,735
1, 652
1,576
1, 554
1,598
1,647
1,649
1,836
1,805

581
596
585
550
552
555
566
589
529
589
603
644
594
510
535
519
547
575
604
594
554

274
307
306
322
343
358
384
388
351
404
380
405
391
358
375
409
421
410
423
406
367

98.4
129.5
151. 8
127.8
157.5
175.0
178. 8
213. 0
158.8
64. 3
152. 8
112. 1
189. 1
211.5
243. 1
225. 7
248. 5
231. 5
244 3
233.3
199.9

81.6
107.6
128.8
106. 1
133. 4
146. 9
148.8
177.0
131. 4
41. 5
126. 6
93.5
160. 7
180.7
206.8
192. 8
210.5
195. 4
206. 6
196.1
171.2

16.8
21. 9
23. 0
21.7
24. 1
28.1
30. 0
36. 0
27.5
22.9
26. 2
18.5
28.5
30.8
36*3
33.0
37. 9
36. 1
37. 7
37.2
28.7

2, 615
2,640
2, 603
2,607
2, 644
3
2, 617

140.4
141.7
139.7
139.9
141.9
140. 5

19, 708
21, 246
21,276
21, 229
20, 807
3
21, 461

1,894
1,915
1,738
1,739
1, 782

454
581
588
598
595

282
366
389
398
413
412

190.3
218.5
189.2
173.8
138.6
117.7

161.6
187.7
168.7
147. 1
107.5
87.9

28.7
30.8
20.5
26.7
31.1
29.8

»Dally average, deludes data for Alaska.
* Preliminary.
3 Not charted.




S

COUNCIL OF ECONOMIC ADVISERS

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
New construction outlays (seasonally adjusted) increased slishtly in.-July, reflecting an advance in commercial and
industrial building. Compared with a year earlier, all types of private construction were up with commercial and
industrial showing a sharp rise of 22 percent/ public outlays were unchanged.
BILLIONS OF DOLLARS
80

BILLIONS OF DOLLARS
80

SEASONALLY ADJUSTED ANNUAL RATES

70

70

TOTAL NEW CONSTRUCTION

V

60

50
PRIVATE
40

40

30

PUBLIC
\
:
0 1» » ' i ' F'

t t t t

1959
SOURCE: DEPARTMENT OF COMMERCE

Period

1959
1960
1961
1962*
1963*
1964*

Total new
construction
expenditures

T)
Jrr
ivate

Total

55.3
53.9
55.4
59. 6
62. 8
65.8

.• '
1964*: June
July
Aug__ _.
Sept_____
Oct_
Nov
Dec_._ _
1965*: Jan
Feb
Mar
Apr_
May
June 4
July *

COUNCIL OF ECONOMIC ADVISERS

39. 2
38. 1
38. 3
41.7
43.9
45.9

.A-- ':!

66.4
66.4
65. 5
66. 0
64.9
65.2
66.2
66. 1
66.9
67.6
67.6
67.6
69.0
69.2

1

Resi dential noiif arm
CommerNew
Additions cial and
Total i housing and al- 2 industrial
units terations
Billions of dollars
19.2
4.3
24. 3
6. 0
16.4
21.7
7.0
21.7
7.5
16. 2
7.9
24.3
18. 6
25.8
20. 1
a2
9.0
26. 5
20.6
£

46.2
46. 1
45. 5
45.6
45.3
45.4
45.7
46.3
46.8
47.2
47.5
48.0
48.6
48.9.

1
a Includes nonhousekeeping residential construction,
3 Not available for revised series beginning 1960.

Other

8.9
9.3

9. 2

9.5
9.9

10.4

Federal,
State,
and
local

16. 1
15.9
17. 1
17.9
18.9
19.9

Sea sonally adjitsted annucil rates

26.6
26.6
26.3
25. 9
25.7
25.6
26. 0
26. 7
26.7
26.6
26.7
27.1
27.3
27.3

20.7
20.6
20. 3
20. 0
19.8
19.8
20.2
20.8
20.9
20. 7
20.8
21.1
21.3
21.3

not shown separately.

Compiled by F. W. Dodge Corporation and relates-to 48 States.
< Preliminary.



9.0
8.9
8.9
9.0
9.1
9.2
9.3
9.5
9.6
9.8

10. 1
10. 3
10.6
10.9
fe

10.6
10.6
10.4
10.6
10.5
10.5
10.5
10.2
10.6
10.7
10.8
10.6
10.7
10.7

20.2
20.3
20.0
20.4
19.6
19.8
20.5
19.7
20. 0
20.4
20.0
19.6
20.4
20.3

Constructiori contracts8
CommerTotal value cial and
(index, industrial
1957-59 = floor space
100)
(millions of
square feet)
105.1
105.2
107.6
119.7
132.0
137. 0

440
461
443
500
534
598

Seasonally
adjusted

Seasonally
adjusted (
annual ~
rates

138
140
121
131
136
143
154
137
140
141
152
145
139

574
631
573
617
645
595
707
638
697
648
771
674
663

•Beginning 1962, data revised. See Construction Reports, CSQ-65-6, Census
Bureau, June 1965.
NOTE.—Data for Alaska and Hawaii included beginning January 1959.
Sources: Department of Commerce and F. W. Dodge Corporation.

19

NEW HOUSING STARTS AND APPLICATIONS FOR FINANCING
Private nonfarm housing starts (seasonally adjusted) declined about 7 percent in July and were 3 percent lower than
a year earlier. Starts under Government programs dropped somewhat less, and were about the same as a year
earlier. Units authorized in permits were down slightly*

MILLIONS OF UNITS
2.5

MILLIONS OF UNITS
2.5

PRIVATE NONFARM
HOUSING STARTS

1965
COUNCIL OF ECONOMIC ADVISERS

SOURCE DEPARTMENT OF COMMERCE, FEDERAL HOUSING ADMINISTRATION (FHAX YETOANS ADMINISTRATION .(VA)

(Thousands of units]

Hoiising star ts
Period

1959
1960
1961
1962
1963
1964
1964: JuneJuly.
Aug-_
Sept.
Oct__
Nov_
Dec__
1965: Jan__
Feb__
Mar.
Apr__
MayJune33
July |

Total
private
and
public
(including
farm)
1, 553. 5
1, 296. 0
1, 365. 0
1, 492. 4
1, 640. 9
1, 590. 8

1, 516. 8
1, 252. 1
1, 313. 0
1, 462. 8
1, 609. 2
1, 557. 4

164.9
146. 0
145.7
127.4
146.1
114.6
98.3
85.6
87.9
124.9
154.9
162.1
161.9
142.8

159.4
143. 5
142.3
124. 0
144.0
112.0
96. 7
81. 5
85.4
120.7
152. 2
157.5
155.1
140.2

Total
private
(including
farm)

Prhrate nonfa rm
Two or
Onemore
Total
family
families
1, 494. 6 1,211.9 282. 7
1, 230. 1 972.3 257. 8
1, 284. 8
946.4 338. 4
1, 439. 1
967. 8 471. 3
1, 581. 7 993.2 588. 5
1, 530. 4
944.5 585.9

156.7
141.2
139. 7
121.9
141.4
109.9
94.8
80. 1
84. 7
118.8
150. 1
155.2
152.4
137. 9

99.3
89.6
87.5
77.0
89.3
67.3
56.7
50.4
50.7
74.8
97.7
100. 1
98. 0

57.4
51.6
52.2
44.9
52. 1
42. 6
38. 1
29.7
34. 0
44. 0
52.4
55. 1
54 4

Total
private
(including
farm)

1, 516. 8
1, 252. 1
1, 313. 0
1, 462. 8
1, 609. 2
1, 557. 4

1,621
1,500
1,513
1,445
1, 522
1,505
1,610
1,442
1,482
1,489
1,552
1,516
1,562
1,459

Priv ate nonf arm

Total

Gover nment
home p rograms

FHA

VA

1, 494. 6 307. 0 109. 3
1, 230. 1 225. 7
74. 6
1, 284. 8 198. 8
83. 3
1, 439. 1 197. 3
77. 8
71.0
1, 581. 7 106. 2
59.2
1, 530. 4 154.0
Seiisonally adj usted
152
1,593
60
56
1, 475
145
1, 489
142
52
1,422
52
136
146
1,495
50
152
57
1,480
53
1,575
151
69
1,417
168
69
1,468
171
166
59
1,465
1,532
147
51
1,501
56
160
1,535
154
54
1,433
151
51

Proposeid home
constr uction
New
private
Applicahousing
Requesl
units tions for for VA
FHA
authorapprais
ized 1 commit-2
als 2
ments
369.7
1, 208. 3
242. 4
998. 0
1, 064. 2
243. 8
1, 186. 6 221. 1
1, 334. 7
190. 2
182.1
1, 285. 8
annual ra tes
177
1,305
1,264
162
1,285
176
1,243
174
1,236
183
1,256
194
1,195
193
202
1,280
1,224
203
1,269
184
1,187
190
1,240
183
1,254
155
1,230
168

234.0
142. 9
177. 8
171. 2
139. 3
113.6

103
109
88
121
112
118
118
113
124
110
95
109
93
92

1
Authorized by issuance of local building permit; in 10,000 permit-issuing
NOTE.—Census series for 1964 revised. See Housing Starts, C20-65-5, May 1965
places
prior to 1963, and 12,000 or more thereafter.
Data include Alaska and Hawaii.
a
Units represented by mortgage applications for new home construction.
Sources: Department of Commerce, Federal Housing Administration (FHA),
. »Preliminary.
'' and
Veterans Administration (VA).

20




BUSINESS SALES AND INVENTORIES—Total and Trade
According to the advance report, seasonally adjusted retail sales in July increased 2 percent to a new high of $23.8
billion.
BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)
112

BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)

108

16

BUSINESS SALES AND INVENTORIES•<

RETAIL TRADE {ENLARGED SCALE)

INVENTORIES
104

14

100

12

DURABLE GOODS STORES
INVENTORIES

80

SALES-

8

76
6

y

72

SALES
4

68

NONDURABLE GOODS STORES

18
64
18

>•* <**""

T M H M MI

M 1 M 1 1 , 1 II 1

i M,I 1 1 i, i M.I.

M 1 1 1 I 1 1 1 II

16

_ WHOLESALE TRADE
(ENLARGED SCALE)

1NYENTORIES

14

16

I

—-?—'V*
SALES

12
14

10
1i t i i \

1 1 1

1962

I

1965

1964

1963

1 1 11111 1 111

1 M II 1

1963

1962

1964

Sales 2

Be tail 5

Whol(^sale 4

Total biusiness l

Period

1965

COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF COMMERCE

Inventories 3

Sales 2

Sales 2

Inventories 3

Total

][nventories

NonDurable durable
goods
goods
stores
stores

Total

Durable
goods
stores

3

Nondurable
goods
stores

Millions of dollars, seasonall y adjustec1

1957
1958
1959
1960
1961
1962
1963
1964
1964: May
June
July
Aug
Sept
Oct
Nov
Dec_
1965: Jan__ _
Feb
Mar
Apr
May
June 66
July

55, 878
54, 232
59, 583
60, 530
60, 747
65, 078
68, 002
72, 647
72, 660
72, 187
73, 693
73, 204
_ _ 73, 358
72, 131
73, 371
_ _ _ _ _ 76, 277
_ _ _ 75, 913
75, 956
77, 815
77, 529
77, 884
77, 990

89, 052
86, 922
91, 964
94, 610
95, 576
100, 271
105, 127
109, 026
106, 507
106, 621
106, 634
106, 716
107, 323
107, 367
108,093
109, 026
110, 012
110,329
111,316
112, 166
112, 796
113,370

:

10, 475
10, 257
11, 413
11, 440
11, 629
12, 158
12, 692
13,715
13, 697
13, 623
13, 795
13, 770
13, 792
13, 937
14, 196
14, 178
14, 128
13, 946
14, 725
14, 620
14, 718
14, 743

12, 730
12, 739
13, 952
13, 983
14, 251
14, 580
15, 597
16, 461
16, 053
16, 043
16, 017
15, 986
16, 222
16, 276
16, 384
16, 461
16, 774
16, 867
17, 064
17, 216
17, 450
17, 425

1
The term "business" here includes wholesale, retail, and manufacturing trade
(see page 22).
23 Monthly average for year and total for month.
Book value, end of period, seasonally adjusted.
4
Beginning 1961, data include Alaska and Hawaii.




16, 667
16, 696
17, 951
18, 294
18, 234
19, 613
20, 536
21,802
21, 777
21, 773
21, 935
22, 266
22, 254
21, 383
21, 661
22, 781
22, 900
23, 317
22, 805
22, 865
23, 352
23, 299
23, 759

5, 696
5, 284
5,972
5,894
5, 608
6, 245
6,675
7,093
7, 218
7, 002
7,060
7, 324
7, 541
6,496
6,695
7,645
7,855
7,966
7,669
7,550
7,703
7,744
7, 893

10, 971
11, 412
11, 979
12, 400
12, 626
13, 367
13, 861
14, 709
14, 559
14, 771
14, 875
14, 942
14, 713
14, 887
14, 966
15, 136
15, 045
15,351
15, 136
15,315
15, 649
15, 555
15, 866

24, 451
24, 113
25, 305
26, 813
26, 238
27, 938
29, 383
29, 621
29, 926
30, 180
30, 129
29, 967
30, 082
29, 314
29, 332
29, 621
30, 025
30, 080
30, 544
30, 951
31, 077
31, 338

11, 283
10, 526
11, 044
11, 951
11, 019
11, 728
12, 509
12, 220
13, 024
13, 079
12, 924
12, 762
12, 867
12, 076
12, 066
12, 220
12,583
12, 703
13, 078
13,311
13, 483
13, 547

13, 168
13, 587
14, 261
14, 862
15, 219
16, 210
16, 874
17, 401
16, 902
17, 101
17, 205
17, 205
17,215
17, 238
17, 266
17, 401
17, 442
17, 377
17, 466
17, 640
17, 594
17, 791

e6 Beginning 1960, data include Alaska and Hawaii.
Preliminary.
Source: Department of Commerce,

21

MANUFACTURERS' SHIPMENTS, INVENTORIES, AND NEW ORDERS
Manufacturers1 new orders (seasonally adjusted) recorded a small gain in June, following a sharp drop in May. A
further decline in aircraft orders was more than offset by a sharp recovery in steel orders. Inventories rose $340
million, while shipments rose only $1 30 million. As a result, the inventory-shipments ratio inched up to 1.62.
PILLIONS OF DOLLARS (SEASONALLY ADJUSTED)

BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)
70

MANUFACTURERS' SHIPMENTS

MANUFACTURERS' INVENTORIES

TOTAL

30

DURABLE GOODS

20
40
DURABLE GOODS

MANUFACTURERS' NEW ORDERSl
DURABLE GOODS.

20

30
NONDURABLE GOODS

.

NONDURABLE GOODS
,„«„,„.,.;*,*»

10 |H

UU-LJUJ

1962

1963

1964

1962

1965

1964

1963

SOURCE, DEPARTMENT OF COMMERCE

Period
Total

1957
1958....
1959
I960..
1961
1962
1963
1964
_
1964: May
June
July
Aug
Sept
Oct
Nov
Dec
_
1965: Jan
Feb
Mar
Apr
May
June 44 5
July ...

28, 736
27, 280
30, 219
30, 796
30, 884
33, 308
34, 774
37, 129
37, 186
36, 791
37, 963
37, 168
37, 312
36,811
37, 514
39, 318
38, 885
38, 693
40, 285
40, 044
39, 814
39, 948

NonDurable durable
goods
goods

15, 237
13, 572
15, 544
15, 817
15, 532
17, 184
18, 071
19,231
19, 138
19, 023
19, 861
19, 164
19, 284
18, 633
19, 291
20, 559
20, 415
20, 374
21, 284
20, 915
20, 513
20, 646

O1 AQO

13, 499
13, 708
14, 675
14, 979
15, 352
16, 124
16, 704
17, 898
18, 048
17, 768
18, 102
18, 004
18, 028
18, 178
18, 223
18, 759
18, 470
18,319
19, 001
19, 129
19, 301
19, 302

Total

NonDurable durable
goods
goods

Millions of dollars,
51, 871 31, 728
50, 070 30, 095
52, 707 31, 839
53, 814 32, 360
55, 087 32, 646
57, 753 34, 326
60, 147 36, 028
62, 944 38, 412
60, 528 36, 300
60, 398 36, 492
60, 488 36, 597
60, 763 36, 790
61,019 37, 037
61,777 37, 517
62, 377 38, 040
62, 944 38, 412
63, 213 38, 495
63, 382 38, 692
63, 708 38, 972
63, 999 39, 233
64, 269 39, 475
64, 607 39, 893

1 Monthly average for year and total for month.
Book value, end of period, seasonally adjusted.
For annual periods, ratio of weighted average inventories to average monthly
shipments; for monthly data, ratio of inventories at end of month to shipments
for month.
2
3




1965

COUNCIL OF ECONOMIC ADVISERS

Manufac turers' sh pments 1 Manufad urers' inv entories 2

22

»""'''''"'.«.»«»«»"

Ma nufacture rs' new orde rs 1

Durab le goods
Total

Total

seasonal] y ad juste i
20, 143 27, 514 14, 073
19, 975 26, 901 13, 170
20, 868 30, 679 15, 951
21, 454 30, 115 15, 223
22, 441 31, 061 15, 664
23, 427 33, 167 17, 085
24, 119 35, 036 18, 300
24, 532 37, 697 19, 803
24, 228 37, 893 19, 945
23, 906 37, 782 20, 016
23, 891 39, 315 21, 254
23, 973 37, 509 19, 342
23, 982 38, 018 19, 907
24, 260 37, 846 19, 623
24, 337 37, 720 19, 454
24, 532 39, 590 20, 720
24, 718 39, 704 21,271
24, 690 39, 469 21, 130
24, 736 40, 712 21,714
24, 766 41, 120 22, 043
24, 794 40, 181 20, 992
24, 714 40, 307 20, 947
21, 990
* Preliminary.
Source: Department of Commerce.

NonMachinery durable
and
goods
equipment
2, 566
2,354
2,878
2,791
2,854
3, 090
3,326
3,706
3, 929
3,916
3, 774
3,772
3,686
3,786
3,882
3,917
3,958
3,799
4,024
4,078
4, 069
4, 004
4, 371

13, 441
13, 731
14, 728
14, 892
15, 397
16, 082
16, 736
17, 895
17, 948
17, 766
18, 061
18. 167
18, 111
18, 223
18, 266
18, 870
18, 433
18, 339
18, 998
19, 077
19, 189
19, 360

«Not charted.

Manufacturers'
inventoryshipratio

3

1. 80
1.84
1.70
1.76
1. 74
1. 70
1. 69
1.64
1. 63
1. 64
1. 59
1. 63
1. 64
1.68
1. 66
1.60
1.63
1.64
1. 58
1. 60
1.61
1.62

MERCHANDISE EXPORTS AND IMPORTS
Exports decreased slightly and imports rose slightly in June so that the seasonally adjusted trade surplus fell by $129
million to $350 million. Compared with June 1964, exports were up 8 percent and imports were up 20 percent.

BILLIONS OF DOLLARS
3.0

BILLIONS OF DOLLARS
3.0

1.0

1.0

1965

1959
I/SEE NOTE 1 BELOW.
SOURCE, DEPARTMENT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS

[Millions of dollars]
Merchandise
Gener al 2imTotal ( inelud-1
trade
JDomesti c exports
Imports for consum ption
por ts
ing rees-ports)
Indus- Finished surplus,
Indus- Finished
Season- Unad- Total * Food- trial
manu- seasonmanu- Season- Unad- Total* Food- trial
ally adally ad- justed
facstuffs mateally ad- justed
facstuffs matejusted
rials
tures
justed
rials
tures * justed
M erchandi se expoi-to

M erchandisse inipo rts

3

Period

Monthly average :
1957__
1958
1959
1960
1961
1962__ _._
1963
1964
1964: May
June
July
Aug
Sept
Oct - _ Nov _ __
Dec
1965: Jan
Feb
Mar
Apr__
May
Jun o

530
208
1,611
198
368
1,351
1,352
366
210
230
1,617
510
254
486
1,659
440
1, 723
281
314
488
1,839
352
2, 102
576
U nadjust ed
552
2,221 2, 184
378
549
2,047 2,008
308
294
2, 046 2,020
586
1,900 1,868
308
515
348
569
2,085 2,058
638
367
2, 259 2, 226
2, 183 2, 158
390
615
2, 5(>! 2, 526
399
738
1 , 1 SS 1, 171
1,514 1,491
2, S92 2, 860
2, 529 2, 502
2, 381 2, 351
2, 211) 2, 11)1

1,625
1,364
1,366
1, 633
1,679
1,745
1,869
2, 135
2, 062
2,034
2, 12S
2, 109
2,235
2, 155
2, 197
2, JSO
1,217
1, 593
2, 753
2, 880
2, 278
2, 185

1, 102
1, 101
1, 284
1, 251
1, 221
1 , 354
1,417
1,550
U

1, 243
1, 143
, 1 34
, 045
,141
, 221
, 1 5-1
, ;>St)

1
Total exports less Department of Defense shipments of grant-aid military
supplies
and equipment under the Military Assistance Program.
2
Imports for immediate consumption plus entries into bonded warehouses.
3
Imports for immediate consumption plus withdrawals for consumption from
bonded warehouses.




1, 105
1,105
1,302
1,251
1, 226
1, 366
1,428
1, 557

872
784
776
877
919
1,002
1,031
1, 170
1, 539
1,518
1, 578
J, 575

i,r>4(>'

1,5,',$
/, 6YAV
/, M,2
J , VOti

1, (}()()

1,869
J, 835
/, 7,9-9
/, 835

J , 450
1 , f><)4

1, H I 1
1, 491
1 , ,r>H2
J , HI 3
1 , (>72
1 , 755
1, 113
1, 464
2, 040

1,855
1, 724
1,907

1, 432
1 , 575
1,613
1,490
1, 568
1, 644
1,655
1, 720
1, 138
1,489
1,999
1,821
1,720
1, 878

534
274
489
288
569
285
274
539
522
277
561
297
574
310
320
619
ladjust ed
297
581
632
303
294
659
625
280
614
320
628
351
620
379
366
671
553
156

294
326
431
438
423
496
533
611

520
259
64
382
453
379
440

556
642
662
585
634
665
656
684
429

522
516
545
534
689
607
499
788
11
-8
884
546
479
350

578

« Data through I960 have been adjusted to include imports of uranium ore.
NOTE.—Scries revised beginning 1963. Because of revisions, subgroups do not
include all data in totals.
Source: Department of Commerce.

23

U.S. EXPORTS AND IMPORTS OF GOODS AND SERVICES
The balance on goods and services rose 21 percent to a seasonally adjusted annual rate of $7.5 billion in the second
quarter. Both exports and imports of goods and services showed large increases as they recovered from the low strikeaffected first quarter levels. Exports were up 14 percent and imports 13 percent.

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

20

20

10

10

1965

1959

SOURCE DEPARTMEMT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS

1957_._
1958
1959
1960*
1961*
1962*
1963*
1964*

26, 481
23, 067
23, 476
27, 244
28, 557
30, 278
32, 353
37, 017

1964:* I
II
III_
IV

36, 336
35, 964
37, 340
38, 428

[Millions of dollars]
Exports o f goods amd services
Inconrle on
Addendum :
investinents
Goods and
Other
services
Mer- Milifinanced
chan-1
tary
PriGov- services
by Govt.
dise
vate
sales
erngrants and
ment
capital
19, 390
375 2, 612
205 3,899
(22)
300 2, 538
16, 264
307 3,658
(2)
302 2,694
16, 282
349 3,849
()
2, 239
19, 489
335 3,001
349 4,070
402 3,561
2,687
19, 936
380 4, 278
20, 604
471 4,593
2,928
656 3,954
3, 420
22, 069
659 4, 156
498 4, 971
762 5,003
454 5,510
3,390
25, 288
Seaso nally adjusted annua I
24, 596
3,248
776 5,064
520 5,380
764 5,052
3,380
24, 268
528 5,352
672 5,040
3,496
25, 528
528 5,572
26, 760
240 5,736
3,436
836 4,856

1965: I—
II 3

34, 800
39, 824

22, 356
26, 972

Period

Total

716

5,668

* Adjusted from customs data for differences in timing and coverage,
s Not available.
* Preliminary.

24




556

5,504

3,032

Impor ts of good s and ser\aces

Total

Merchan-l
dise

Balance
MiliOther on
tary
expend- serv- goods
ices
itures
ices

20,752
20, 861
23, 342
23, 177
22, 924
25, 129
26, 436
28, 457
rates
27, 512
28, 244
28, 544
29, 528

13, 291
12,952
15, 310
14, 732
14, 507
16, 173
16, 992
18, 619

3, 216
3,435
3, 107
3,048
2,954
3,078
2,929
2,824

4,245
4,474
4,925
5,397
5,463
5,878
6,515
7,014

5,729
2, 206

17, 640
18, 396
18,836
19, 604

2,928
2,880
2,764
2,724

6,944
6,968
6,944
7,200

8,824
7, 720
8,796
8,900

28, 604
32, 304

18, 652
21, 892

2,656 7,296

6,196
7,520

*Data revised beginning 1960.
Source: Department of Commerce.

134

4,067
5,633
5,149
5,917
8,560

U.S. BALANCE OF INTERNATIONAL, PAYMENTS
The United Stafes recorded a surplus on regular transactions of $528 million (seasonally adjusted annual rate) in the
second quarter—the first surplus in nearly 8 years. A major factor in the improvement was a shift from large-scale
increases in total bank lending abroad to a sizable net reduction. The second-quarter results were strongly influenced
t>y the balance-of-payments program adopted in February, though special factors also played a role.

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

20

20
SEASONALLY ADJUSTED ANNUAL RATES

BALANCE ON GOODS AND SERVICES

10

10

BALANCE ON OTHER
REGULAR TRANSACTIONS

-10

-10

-20

-20

I

I

1

10

10
BALANCE ON REGULAR TRANSACT ONS [SURPLUS OR )ERCIT
I
H]

-10

!

1
1959

!

I
1

1

1

1960

1

1

!

!

1961

1

!

1

1
1963

1962

SOURCEi DEPARTMENT OF COMMERCE

I

I

!
1964

!

I

!

!

1965
COUNCIL OF ECONOMIC ADVISERS

[Millions of dollars]

U.S. pr ivate capi tal, net

Period

U.S.
Government
grants
and
capital,
net i

Direct
investment

Longterm
portfolio 2

Shortterm

Foreign
capital,
net3

Errors
and
unrecorded
transactions

Balance
on
regular
transactions 4

Chang es in selec ted liabilities (decrease ( - ) ) 6
To f oreigrn official
Selected
hnlH
special
To
Govern- Special
nonother
ment
foreign 8
trans- marketactions 5 able, con- Other holders
vertible
bonds
and notes

Changes
in gold,
convertible
currencies, and
IMF

gold
tranche
position
(increase
(-))

20
625 — 1, 165
-276
487
1, 157
520
-2, 574 -2, 442
-859
1957
735
502
2, 292
22
488 -3, 529
1, 444
-2,587 -1, 181
-311
1958
_77
1,248
435
1,460
412 -4, 178
1,035
-2, 421 -1, 372
— 926
863
1959
1,449
289
341
37
2,143
-988
3,918
-863 -1,348
1960*___ -2,781 -1,674
681
622 - 1, 045 -3,071
1,083
701
606
3,396 — 1, 599 -1,025 -1,556
1961*___
457
1,402
213
1,533
-544
153 -1, 197 -3,605
1962*_ _ -3,547 - 1, 654 -1,227
970
703
619
617
303
378
-785
-401 -3,287
1963*___ -3,813 -1,976 -1,695
698
1,554
432 — 1, 161 -3,106
375
308
171
1964*___ -3,636 -2,376 -1,975 — 2, 111
Quarterly , totals uilad justed
S(>asonally iid justed amnual rat es
1964:*
— 400
227
160
56 -1, 152 - 1, 668
— 51
-3,252 -1,856 -1,096 -2,356
I _
114
122
93
-37
303
448
II
-3,552 -2, 160 -1,024 -2,192
-608 -2,180
186
562
-2,372
203
784
—
1,
164
-1,624
70
-3,684
-2,204
-2,448
III___
819
50
651
440 -1,720 -6,204
185
-151
IV
-4,056 -3,284 -3,332 -2,272
1965:
-912
842
193
984
51
1, 144
65
-468 -3, 024
I
-3,256 -4, 012 -2, 728
s
528
166
68
II10-__i
516
8
1
Private
holders;
includes
banks
and
international
and
regional
organizations.
Includes
associated
Govt.
liabilities
and
scheduled
loan
repayments.
2
Excludes
liabilities to IMF relevant to U.S. gold tranche position.
Includes banking claims.
8
On June 30. U.S. reserve assets consisted of gold stock, $14,049 million (down
s4 Other than liquid funds; includes miscellaneous Govt. nonliquid liabilities.
$590 million from Mar. 31); IMF position, $908 million; convertible currencies,
Includes balance on goods and services (page 24) as well as net pensions and
$546 million.
remittance payments ($839 million in 1964).
10 Preliminary.
fi Includes official debt prepayment, advances on military exports, and net
sales of those nonmarketable, medium-term, nonconvertible securities not
*Data revised beginning 1960.
Included
under
foreign
capital.
6
NOTE.—Data exclude military grant aid and U.S. subscriptions to IMF.
Includes short-term official and banking liabilities and foreign holdings of
Source: Department of Commerce.
o
U.S.
Govt. bonds and notes (other than nonmarketable, nonconvertible).

7
Central banks and governments.


PRICES

CONSUMER PRICES

A sharp rise of 2 percent in food prices was largely responsible for a 0.5 percent increase in the over-all index of consumer prices in June. Prices of durable commodities fell 0.3—the fifth straight month of decline—but prices of nondurables excluding food rose 0.1 percent. Service prices continued their long term upward trend, rising 0.1 percent.

Index, 1957-59=100
120

Index, 1957-59 = 100
120

100

100

95

95
1959
I/SEE NOTE BELOK.
SOURCE, DEPARTMENT OF LABOR

COUNCIL OF ECONOMIC ADVISERS

[1957-59=100]
Co mmoditief 3

All
items

Period

1954
1955
1956
1957
1958
1959
1960
1961
1962
1963 1
1964
1964: May
June__
July
Aug
Sept
Oct
Nov
Dec
1965: Jan
Feb
Mar
Apr

._

_„ ___

Mav
June

_ _

93.6
93. 3
94.7
98.0
100. 7
101. 5
103. 1
104. 2
105. 4
106. 7
108. 1
107. 8
108.0
108. 3
108. 2
108. 4
108. 5
108. 7
108. 8
108.9
108. 9
109.0
109. 3
109. 6
110. 1

All commodities
95. 5
94. 6
95. 5
98. 5
100. 8
100. 9
101. 7
102. 3
103.2
104. 1
105. 2
104. 8
105.0
105. 3
105. 2
105. 4
105. 5
105. 6
105. 7
105.6
105. 5
105.6
105. 9
106.2
106. 9

Food

95.4
94. 0
94. 7
97. 8
101. 9
100. 3
101. 4
102. 6
103. 6
105. 1
106. 4
105. 5
106. 2
107. 2
106. 9
107. 2
106. 9
106. 8
106.9
106.6
106. 6
106.9
107. 3
107. 9
110. 1

}
See note.
NOTE.—Prior to January 1964, indexes revised to reflect transfer of bomeownership from services to durable commodities


26


Services

Comm odities les s food

All
Non- services
All
Durable durable
94. 4
88. 7
95. 6
97. 1
90. 5
94. 9
94. 4
95. 3
92. 8
95. 9
95. 4
96. 5
96. 6
98. 8
98. 5
99. 1
99. 9
100. 0
100. li
99. 8
101. 2
101. 0
103. 2
101. 5
101. 7
100.9
102. 6
106. 6
102. 0
100.8
103. 2
108.8
103. 8
110. 9
102. 8
101. 8
103. 5
102. 1
104. 8
113. 0
104.4
103. 0
105. 7
115. 2
104.3
105.7
102. 8
114. 9
104. 3
102. 9
105. 6
115. 1
105.6
104.3
102.9
115. 3
104. 2
102. 8
105. 6
115. 4
104. 3
102. 8
105. 8
115. 5
104. 6
115. 7
106. 0
103. 1
104. 8
106. 1
103. 5
116. 0
104. 9
103.4
106. 3
116. 2
103.6
106. 1
104.9
116.6
104. 7
106. 1
103. 3
116. 9
106.2
104.8
103. 2
117.0
105. 0
103. 0
106. 8
117. 3
102. 9
107. 2
117. 5
105. 2
1 02. 6
107. 3
117. 6
105. 1

Rent

93. 5
94. 8
96. 5
98. 3
100. 1
101. 6
103. 1
104. 4
105. 7
106. S
107. 8
107. 7
107.8
107. 8
107. 9
107. 9
108. 2
108. 3
108. 4
108. 4
108. 5
108.7
108. 8
108. 8
108.8

Services
less
rent

87. 4
89. 4
91. 9
96. 1
100. 2
103. 6
107. 4
110. 0
112. 1
114. 5
117. 0
116. 6
116. 8
117. 0
117. 2
117. 4
117. 6
117. 9
118. 2
118.6
118. 9
119. 1
119. 3
119. 5
119.7

Beginning with January 1964, new index with revised weightp, coverage, and
sampling procedures. For details, see Department of Labor release, ~ Major
Changes in the Consumer Price Index, March 3, 1964.
Source: Department of Labor

WHOLESALE PRICES
The over-all index of wholesale prices rose 0.1 percent in July.
farm products fell 0.3 percent. Industrial prices were stable.

Processed food prices rose 0.6 percent, but prices of

Index, 1957-59 = 100

index, 1957-59 = 100

COMMODITIES OTHER THAN FARM
PRODUCTS AND FOODS
(INDUSTRIALS)

95

90

90

1959
SOURCE DEPARTMENT OF IABOR

COUNCIL OF ECONOMIC ADVISERS

[1957-59=100]

All
commodities

Period

1957
1958
1959
1960
1961
1962
1963
1964
1964: Apr
May__
June
July
Aug
Sept
Oct
Nov
Dec
1965: Jan_ _
Feb
Mar
Apr
May___ _ __
June3_ _ _
July _
Week ended: 4
1965 Aug. 10
17__

99. 0
100. 4
100. (>
100. 7
100. 3

__ —

101.7
1011 1
1 02. 8
102. 9

loi. 3

1 02. S
102. 8

99. 4
98. 9

10(5. 3
100.5

100. 3

100. 7
.100. S
100. 7
100. 7
101. 0
101. 2

_
_
_

„ _

_

__

_.

99. 2
103. (>
97. 2
96. I)
96. 0
97. 7
95. 7

9-1. 0
92. 7
93. 0
9-1 5
95. -I
97. (')
9S. ^1
100. 3
100. 0

100. !
100. 0
100. 4

_

Processed
foods
97. 9
102. 9
99. 2
100. 0
100. 7
101. 2
101. 1
101. 0
1 00. -1
99. -1
100. 2
101. 2
101. 0
102. 2
101. 7
100. 9
100. S
102. 2
102. 1
101. S
102. 3
1 03. 3
1 ()('). 1
100. 7

100. o
100. 3
loo. r>
i oo. :;

_ _

Farm
products

9-1. 3

9-1. -1
93. 7
93. 2
94. 1
93. 0
95. 7
9.*}. S

1
Coverage of the subgroups does not correspond exactly to coverage of this
index.
2 Excludes intermediate materials for food manufacturing and manufactured
animal feeds; includes, in part, grain products for further processing.




Commodii ,ics other t ban farm ]oroducts aiid foods (iiidustrials)
Consuntier finIndusIndusished g()ods exAll intrial
trial in- Producer
fincludin g food
dustricrude termedi- ished
Nonmate- ate maals »
Durgoods
2
rials
able
durable
terials
99. 2
100. 9
99. 9
99. 6
97. 7
98. 7
99. 5
96. 9
99. 4
100. 2
99. 3
100. 1
101. 3
102. 3
102. 1
101. 0
101. 3
100. 8
101. 3
98. 3
101.4
102.3
100.9
101. 5
100. 8
97. 2
101.5
100. 1
102.5
100. 5
100. 8
9f>. 0
102. 9
99. 9
101. 6
100. 0
9-1. 3
100. 7
103. 1
101.9
99. 6
99.5
101. 2
97. 1
104. 1
100. 2
99. 9
101. 6
101. I
100. 2
90. 2
103. 9
99. 7
101. 1
KM. 1
95. 0
100. 1
104. 3
100. 1
101. 3
100. 9
95. 9
99. 9
100.0
104 1
101. 2
90. ()
100. 0
104. 3
101. 1
100. 1
101. 5
98. ;>
101. 1
100. 0
104.3
99.9
101.4
98. 1
101. 1
99. 9
104. 2
99.9
101. 0
99.
1
100. 4
101. 5
104. 3
100. 0
101. 6
99. 8
100. 5
101. G
104. 6
99. 9
101. 9
101. 8
100. 6
100. 0
104. 5
99. 9
102. 1
101. 9
99. 0
104. 9
100.8
99.8
102.3
101. 9
99. 4
i 00. 8
105. 0
99. 7
102. 2
9;>. 7
102. 0
100. 9
105. 1
99. 7
102. 2
102. 1
100. 1
101. 1
102. 2
105. 3
99.7
102, 3
101. 0
101. 4
105. 3
102. 5
99.6
1 02. 5
100. 5
101. 5
105.4
99. 7
102.6
102. 5
1 00. 4
105.4
101.5
99.6
102.7
102. G
102. 6

3
4

Preliminary.
Weekly series based on smaller sample than monthly series.
Source: Department of Labor.

27

PRICES RECEIVED AND PAID BY FARMERS
During the month ended July 1 5, prices received by farmers fell 1 percent from their June levels, while prices paid by
farmers were unchanged. The parity ratio decreased 1 point.
Index, 1957-59 = 100

Index, 1957-59 = 100

80

RAT 0^

RATIOJ>
100

on

Oft

PARITY RATIO
lillHiiniKlir,,

jpmiu,

80
jmf

70

t

1

1 1

1 1 ]

1959

I 1 1 1
^

1

!

!

1 !

1 t

80

" '^x^-

''V"'"

!

!

!

1

!

1960

!

1

!

1

I 1 1 I

t

1

'""""«,./

t

1

| 1

1 !

1 !

""^

!

1

1

"""'••V'
1

1

1962

1961

1 !

1

x
1

1

1 !

! 1

/""'

1

1

1

1963

1

!

1

1

1

I 1

1

!

1

!

1

1

1

1

1

1 1 1

70

1 1965

1964

I/RATIO OF INDEX OF PRICES RECEIVED TO INDEX OF PRICES PAID,
INTEREST, TAXES, AND WAGE RATES, ON 1910-14 = 100 BASE.
COUNCIL OF ECONOMIC ADVISERS

SOURCE, DEPARTMENT OF AGRICULTURE

Prices i'eceived by 'armors
Period

All farm
products

1955 _
1956
1957
1958
1959
1960
1961
1962
1963

_

1964__.
1964: June 15
July 15
Aug 15

Sept 15
Oct 15
Nov 15
Dec 15
1965: Jan 15
Feb 15
Mar 15
Apr 15
May 15

June 15
July 15

,_
_

_.

96
95
97
104
99
99
99
101
100
98
96
97
96
98
98
97
97
98
98
99
101
104
106
105

Crops

104
105
101
100
99
99
102
104
107
106
108
104
101
103
104
105
105
105
105
106
109
111
109
106

1
Percentage ratio of indei of prices received by farmers to index of prices paid,
Interest, taxes, and wage rates, on 1910-14=100 base.

28



Price s

items,
Livestock All
interest,
and
taxes, and
products wage
rates
Index, 1957-59 = 100

90
88
94
106
100
98
98
99
95
91
87
91
92
95
93
91
91
92
93
93
95
99
103
104

94
95
98
100
102
102
103
105
107
107
107
107
107
107
107
107
107
108
109
109
109
110
110
110

paid by fa rmcrs
Family
living
items

1)5
<)(>
<M)
100

101
102
102
103
104
105
105
105
105
105
105
105
105
106
106
106
106
108
107
107

Source: Department of Agriculture.

Production
items

l)(i
1)5
'.IS
100
102
101
101
303
104
103

103
103
103
103
103
103
103
104
104
104
105
106
106
106

Purity
ratio '

SI

s:i
S2
sr>
82
SO

79
80
78
76
74
75
74
76
76
75
75
74
75
75
76
78
79
78

MONEY, CREDIT, AND SECURITY MARKETS
MONEY SUPPLY
The daily average money supply (seasonally adjusted) rose by $0.8 billion in July to a level 3.8 percent above a
year earlier. Time deposits continued to rise, reaching a level 15.2 percent above a year earlier.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
AVERAGES OF DAILY FIGURES, SEASONALLY ADJUSTED

160

160

120

120

TIME DEPOSITS AT ALL
COMMERCIAL BANKS

80

80

40

40
\ 1961

f

1959

1960

1962

1963

1965

1964

COUNCIL OF ECONOMIC ADVISERS

SOURCE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

[Averages of daily figures, billions of dollars]
M oney supp>iy

Period

Total

Currency
outside
banks

M oney supp»iy

Demand
deposits

Time
deposits

Total

Currency
outside
banks

Seasonally7 adjuster

1959:
1960:
1961:
1962:
1963:
1964:
1964:

Dec
Dec
Dec
Dec
Dec
Dec___ _
June
__
July
Aug
Sept
Oct
Nov
Dec
1965: Jan
Feb
Mar
Apr
May__
June
July 2
1
Deposits
2

_ _ _ _ _ _ _ _
___ _

___ _
__ _
_ _ _ _ _ _

at all commercial banks.
Preliminary.




141. 9
141. 1
145. 5
147. 5
153. 1
159. 7
155. 5
156. 6
157. 1
158. 2
158. 8
159. 1
159. 7
160. 0
150. 7
160. 3
161. 1
160. 0
161. 8
162.6

28. 9
28. 9
29. 6
30. 6
32. 5
34. 2
33. 4
33. 6
33. 8
33. 9
34. 0
34. 2
34.2
34. 5
34. 7
34.7
34.7
34. 9
35. 0
35.2

113. 1
112. 1
116. 0
116. 9
120. 6
125. 4
122. 1
123. 0
123. 3
124. 3
124. 8
124. 8
125. 4
125. 5
125. 1
125. 6
126. 4
125. 1
126. 8
127.4

Demand
deposits

Time
deposits l

U.S.
Government

demand
deposits l

1Jnadjuste d

67. 4
72. 9
82. 7
97. 8
112. 2
126. 6
118. 5
119. 4
121. 0
122. 1
123. 5
125. 1
126. 6
128. 8
131. 0
132. 1
133. 5
134. 6
135. 9
137. 6

145. 6
144. 7
149. 4
151. 6
1 57. 3
164, 0
153. 4
155. 0
155. 0
157. 1
159. 0
160. 7
164. 0
164. 4
159. 5
159. 0
161.6
157. 6
159. 6
160.9

29. 5
29. 6
30. 2
U. 2
W. 1
*5. 0
33. 4
33. 7
33. 9
33.9
34. 1
34. 6
35. 0
34. 4
34. 2
34. 3
34.5
34. 6
34. 9
35.4

116. 1
115. 2
119. 2
120. 3
124. 1
129. 1
120. 0
121. 3
121. 1
123. 2
124. 9
126. 1
129. 1
130. 1
125. 3
124. 6
127. 1
123. 0
124. 6
125.6

66. 6
72. 1
81. 8
96. 7
111. 0
125. 2
119. 1
120. 0
121. 1
122. 0
123. 4
124. 1
125. 2
128. 3
130. 8
132. 7
134. 0
135. 4
136. 6
138.3

4. 9
4. 7
4. 9
5.6

5. 1
5. 5
7. 6
6.9
6.3

6. 5

5.5
5.8
5.5
4.2
5.7
6.7
5.6
9.7
9.3
9.1

NOTE.—Series revised beginning 1959. See Federal Reserve Bulletin, July 1965.
See note, p. 31.
Source: Board of Governors of the Federal Reserve System.

29

SELECTED LIQUID ASSETS HELD BY THE PUBLIC
Nonbcmk public holdings of liquid assets (seasonally adjusted) changed little in July. Increases in time deposits
and savings and loan shares were approximately offset by declines in demand deposits and currency and holdings of
short-term Government securities.
BILLIONS OF DOLLARS
600

BILLIONS OF DOLLARS
600
SEASONALLY ADJUSTED, IND OF MONTH

500

500

4004

400

SAVING TYPE
ASSETS JJ

300

300

200

200
DEMAND DEPOSITS AND
CURRENCY

\

100

100
1959

I960

1961

1965

1964

1963

1962

I/ASSETS OTHER THAN DEMAND DEPOSITS AND CURRENCY.
COUNCIL OF ECONOMIC ADVISERS

SOURCE BOARD OF GOVERNORS Of THE FEDERAL RESERVE SYSTEM

[Billions of dollars, seasonally adjusted]

End of period

1956
1957
1958
1959. _
1960
1961
1962
.
1963
1964
1964: July
Aug
Sept
Oct
Nov
Dec
1965: Jan
Feb 3
Mar
Apr 3 3
May 3
June
Julv 3

Total
selected
liquid
assets

343. 2
356. 0
373. 1
393. 9
399. 2
424. 6
459.0
495. 4
530.4
511. 8
514. 9
521.0
523.4
526. 9
530. 4
534.9
536. 4
542.8
543. 3
542. 8
549.5
549.3

Demand
deposits
and
currency 1

134.6
133.5
138.8
139. 7
138.4
142. 6
144. 8
149. 6
156. 7
151.8
152. 2
155. 0
155.0
155. 0
156. 7
156. 1
154. 8
158. 6
156. 3
155. 4
159.4
157.7

Time d eposits

Commercial
banks
52.0
57. 5
65. 4
67. 4
73. 1
82.5
98. 1
112. 9
127. 1
119. 8
120. 6
121. 9
123. 8
125. 9
127. 1
130. 6
131. 9
133. 0
134 1
134. 7
136. 1
138. 1

1 Agrees in concept with money supply, p. 29, except for deduction of demand
deposits held by mutual savings banks and savings and loan associations. Data
for2 last Wednesday of month.
Excludes holdings of Government agencies and trust funds, domestic commercial and mutual savings banks, Federal Reserve Banks, and beginning
February 1060, savines and loan associations


30

Mutual
savings
banks

30.0
31. 6
33. 9
34. 9
36. 2
38. 3
41. 4
44. 5
49.0
47. 1
47.5
47. 9
48. 3
48. 6
49. 0
49. 4
49. 6
49. 8
50. 1
50. 4
50. 6
51. 1

Postal
Savings
System

Savings
and loan
shares

U.S. Government
savings2
bonds

U.S. Government
securities
maturing
within
year 2

1.6
1.3

1. 1
.9
.8

.6
.5
.5
.4

.4
.4
.4

.4
.4
.4
.4
.4
.4
.4

.4
.4
.4

3

37.0
41.7
47.7
54.3
61. 8
70.5
79.8
90.9
101. 3
96.6
97.8
99. 1
99. 8
100. 8
101. 3
101.7
102. 6
103. 6
103. 9
104. 4
105. 1
105.5

54. 8
51. 6
50. 5
47. 9
47.0
47.4
47. 6
49. 0
49.9
49. 3
49. 3
49. 4
49. 4
49. 5
49. 9
50. 0
49. 9
49. 9
49. 9
49. 9
50.0
50.1

s Preliminary; July estimates based on incomplete data.
NOTE.—See note, p. 31.
Source: Board of Governors of the Federal Reserve System.

33.2
38.8
35.6
48. 8
41. 9
42.6
46. 8
48. 1
46. 1
46. 7
47. 1
47.4
46.8
46.7
46. 1
46. 8
47. 3
47.6
48. 6
47. 6
48.0
46.6

BANK LOANS, INVESTMENTS, DEBITS, AND RESERVES
Total commercial bank credit (seasonally adjusted) declined in July following the strong June rise. The decline was
concentrated in holdings of U.S. Government securities while loans—particularly business loans—continued to advance
fairly strongly.

BILLIONS OF DOLLARS
300

BILLIONS OF DOLLARS
300

SEASONALLY ADJUSTED, END OF MONTH

ALL COMMERCIAL BANKS

250

250

TOTAL
LOANS AND INVESTMENTS
200

200

150

150

BANK LOANS

100

100

INVESTMENTS IN
U.S. GOVERNMENT SECURITIES

50

50
INVESTMENTS IN OTHER SECURITIES

Ii
1960

I
1959

I
1961

I

1962

1963

J_
1964

All comnlercial bank s
(s easonally adjusted da ta)
End of period

1957
1958
1959
1960
1961 5
1962
19636
1964
1964: July __ _ _
Aug
Sept
Oct___ _
Nov
Dec
1965: Jan
Feb 6
Mar
Apr 6 6
May
June e6
Julv

Total
Investi lents
Loans,
loans excluding
and
interU.S. Gov- Other
investbank
securiernment
ments
securities
ties

166. 4
181. 2
185. 9
194, 5
209. 8
228. 3
246. 5
267. 2
254. 5
258. 7
261. 7
261. 1
265. 5
267. 2
269. 6
272. 1
275. 5
277. 3
279. 1
282. 2
281.5

91. 4
95. 6
107. 6
113. 8
120. 5
133. 9
149. 4
167. 1
159. 7
161. 5
163.0
163. 2
165. 4
167. 1
170. 2
171.9
175.8
177. 1
179.3
182. 6
182.8

Billions of dollars
57. 1
17. 9
20. 5
65. 1
20. 5
57. 8
20. 8
59. 9
65. 4
23. 9
65. 2
29. 2
62. 1
35. 0
61. 4
38. 7
36. 4
58. 4
60. 2
37.0
61. 2
37. 5
37. 9
60. 0
38. 5
61. 6
38. 7
61. 4
59.9
39.5
60.2
40. 0
40. 1
59. 6
59. 1
41. 1
41. 3
58. 5
42. 0
57. 6
56. 1
42.6

1
Member banks are all national banks and those State banks which have taken
membership
in the Federal Reserve System.
2
Commercial and industrial loans.
3
Debits during period to demand deposit accounts except interbank and
U.S. Government. New series; see Bank Debits and Deposit Turnover, G.6
FRB, February 19, 1965.
* Averages of daily figures. Annual data are for December.




1965
COUNCIL OF ECONOMIC ADVISERS

SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Weekly
reporting
memberl
banks
Business
loans 2

31. 8
31. 7
30. 7
32. 2
32. 9
35. 2
38.8
42. 1
38. 5
38. 9
40. 0
39. 9
40. 5
42. 1
41.8
43. 0
44. 6
44.6
45. 2
46. 8
46.3

Bank
J U. - i
debits
outside
New York
City (343
centers),
seasonally
adjusted
annual3
rates

1, 468
1, 481
1, 656
1, 736
1, 832
2, 021
2, 199
3
2, 696
2, 747
2,682
2, 756
2, 772
2, 730
2, 804
2, SOS
2,845
2,924
2, 962
2, 872
3, 019
3, 021

A U member banks l 4

Total
reserves

19, 420
18, 899
18, 932
19, 283
20, 118
20, 040
20, 746
21,609
20, 665
20, 566
20, 928
21, 033
21,159
21,609
21,619
21, 227
21, 248
21, 505
21, 476
21, 709
21,865

Borrowings at
Free
Excess Federal
reserves Reserve reserves
Banks
]Millions o f dollars
577"
710
557
516
482
906
87
756
149
568
572
304
327
536
411
243
265
400
417
334
420
331
309
415
430
396
411
243
402
299
437
405
340
416
359
471
327
505
343
528
349
524

-133
— 41
-424
669
419
268
209
168
135
83
89
106
-34
168
103
32
— 76
-112
-178
— 185
-175

s Estimates as of December 31.
• Preliminary.
NOTE.—Between January and August 1959, series for all commercial banks
expanded to include data for all banks in Alaska and Hawaii. Data for all
member banks include Alaska and Hawaii beginning 1954 and 1959, respectively.
Source: Board of Governors of the Federal Keserve System.

31

CONSUMER AND REAL ESTATE CREDIT
Total consumer credit rose by $1.2 billion in June, compared to $1.0 billion in June of last year. On a seasonally
adjusted basis, instalment credit rose by $600 million in June.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

80

TOTAL CONSUMER CREDIT OUTSTANDING

INSTALMENT CRED T

NONINSTALMENT CREDIT

0

I

! 1 1 I I I

1 ..1 . 1 1 1 1 1 . t

1 1 \

\

I .1 1,, 1 1 , 1

\

I

1 1 1

1 1 I 1 I I

I

I

I I

INSTALMENT CREDIT REPAID

i T..... \
1959

1
1

i
i960

I

i

I

I 1 9 6 1

SOURCE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Period

1955
„_
1956
1957
1958
1959
1960
1961
1962
1963
1964
1964: M a y _ _ _ _
June__ ._
July
Aug.. _ _ _
Sept
Oct
Nov__ _ _
Dec
1965: Jan
Feb
Mar
Apr
May
June__




1963

I .....

i
1964

|
l

t . . . . . To
1965

COUNCIL OF ECONOMIC ADVISERS

[Millions of dollars]
Mortgage
Consum er instalme nt credit e xtended
Consu mer credit out stan din g (end of p eriod;
iinadjusted)
debt out and r spaid (seas onally adjuisted)
Instalment
Automob ile paper standing,
To tal
nonfarm
NonAutomo1- to 4Total
instal-2 Extended Repaid Extended Repaid
Total *
bile
Personal
family
ment
paper
loans
houses 3
13, 082
28, 906
6, 112
33, 634
16, 734
38, 830
9,924
13, 460
38, 972
88, 200
42, 334
14, 555
31, 720
6,789
37, 054
15, 515
14, 420
10, 614
99, 000
39, 868
7, 582
15, 545
44, 970
33, 867
39, 868
16, 465
107, 600
15, 340
42, 016
11, 103
33, 642
14, 152
14, 226
15, 415
45, 129
8, 116
40, 344
117, 700
40, 119
11, 487
39, 245
51, 542
42, 603
15, 579
17, 779
130, 900
16, 420
9,386
12, 297
48, 052
42, 832
16, 384
56, 028
17, 688
45, 972
17, 654
10, 480
141, 300
13, 196
49, 560
16, 472
57, 678
43, 527
11, 256
47, 700
16, 007
153, 100
17, 223
14, 151
48, 396
48, 034
17, 478
63, 164
19, 540
12, 643
50, 620
19, 796
15, 130
166, 500
55, 126
53, 745
22, 013
19, 354
22, 199
14,391
182, 200
69, 890
16, 145
55,111
60, 822
76, 810
59, 397
24, 521
21,
243
16, 071
60, 418
23, 565
197, 700
17, 413
66, 070
14, 902
1,776
55, 120
5, 059
2, 023
70, 945
23, 255
15, 825
5, 552
71, 907
23, 702
1,962
1,768
55, 914
15, 087
5,029
15, 993
5,399
189, 600
72, 456
56, 496
24, 024
1,996
1,781
15, 233
5, 541
5,058
15, 960
5,094
1,789
57, 055
2,017
73, 069
24, 251
15, 415
16, 014
5, 529
1,802
2, 024
57, 446
15, 612
5, 104
73, 495
24, 295
16, 049
5,617
193, 900
15, 672
1,788
5,097
1,924
57, 826
24, 423
16, 102
5,507
73, 928
58, 085
5, 155
1,818
74, 371
24, 367
1,858
15, 771
16, 286
5,456
24, 521
1,864
76, 810
59, 397
16, 071
5,256
2,043
17, 413
197, 700
5,816
59, 342
2, 120
1, 830
76, 145
24, 574
5,213
16, 091
16, 803
5,883
59, 363
75, 741
24, 743
6, 022
5, 381
2,228
1,897
16, 190
16, 378
1,924
5,393
76, 085
59, 788
25; 063
16, 341
16, 297
2,229
6,030
200, 300
2,272
60, 803
1,936
77, 483
25, 615
16, 693
6, 189
5,445
16, 680
5,435
1,940
61, 739
16, 917
6,105
2,215
78, 687
26, 109
16, 948
62, 790
5,537
2,250
1,960
79, 887
17, 159
26, 685
17, 097
6,139

1
Also includes other consumer goods paper, and repair and modernization
loans,
not shown separately.
2
Consists of single-payment loans, charge accounts, and service credit.
»End of period, unadjusted.

32

i ..... | ..... i

1962

NOTE.—Data for Alaska and Hawaii included beginning January and August
1959, respectively.
Sources: Board of Governors of the Federal Reserve System and Federal Home
Loan Bank Board.

BOND YIELDS AND INTEREST RATES
Most interest rates moved up slightly in July with yields on Treasury securities and corporate bonds showing greatest
upward tendencies. Most changes were only a basis point or two.

PERCENT PER ANNUM

PERCENT PER ANNUM

PRIME
^COMMERCIAL

1960

1959

CORPORATE Aaa BONDS
(MOODY'S)

1961

1962

1963

1964

SOURCES: SEE TABLE BELOW

Period

1958
1959
1960
1961
1962
1963
1964
1964: June
July
Aug
__
Sept__
Oct
Nov
Dec
1965: Jan
Feb
Mar__
Apr
May
June
__ __
July
Week ended:
1965: July 17__
24__
Aug

31

7 _
14..
21__

COUNCIL Of ECONOMIC ADVISERS

[Percent per annum]
High-grade
U.S. Govejrnment secuinty yields
municipal
3-month
bonds
3-5 year
Taxable
2
3
Treasury
(Standard
&
issues
bonds
bills l
Poor's) 4
1.839
2.90
3. 43
3.56
3. 405
4. 33
4.08
3. 95
2. 928
3.99
4. 02
3. 73
2. 378
3. 60
3. 90
3. 46
2. 778
3. 57
3. 95
3. 18
3.72
3. 157
4.00
3. 23
3.549
4.06
4. 15
3. 22
3.478
4. 03
4. 13
3. 20
3. 479
3. 99
4. 13
3. 18
4. 14
3. 506
3. 99
3. 20
4.03
4. 16
3. 527
3. 25
4. 04
3. 575
4. 16
3. 26
4. 12
3. 624
4. 04
3. 18
4. 14
4. 07
3. 856
3. 15
4.06
4. 14
3.828
3.06
4. 08
4. 16
3. 929
3. 10
4. 12
3. 942
4. 15
3. 18
3.932
4. 12
4. 15
3. 17
4. 11
4. 14
3. 895
3. 19
4.09
4. 14
3.810
3.26
4. 10
4. 15
3. 831
3.27
O
OOO
o.
ooo
O

OOO

O. OOO

3.803
3.832
3.846
6
3. 813

1
Rate on new issues within period.
8
Series includes: April 1953 to date,
4

4. 10
4. 11
4. 12
4. 16
4.17

4.15
4. 14
4. 15
4. 16
4. 18

2
Selected note and bond issues.
bonds due or callable 10 years and after.
Weekly data are Wednesday figures.
6 Data for first of the month, based on the maximum permissible interest rate
5H percent since May 1961) and 30-year mortgages paid in 15 years




1965

3.26
3. 24
3.24
3.24
3.24

Corpora te bonds
(Moc>dy's)
Aaa

Baa

3. 79
4.38
4. 41
4. 35
4. 33
4. 26
4.40
4.41
4. 40
4. 41
4. 42
4. 42
4. 43
4. 44
4.43
4. 41
4. 42
4.43
4. 44
4.46
4.48

4. 73
5. 05
5. 19
5. 08
5. 02
4.86
4. 83
4. 85
4.83
4. 82
4.82
4.81
4.81
4. 81
4.80
4. 78
4. 78
4.80
4.81
4.85
4.88

4.48
4.48
4.48
4.47
4.48

4.87
4.88
4.88
4.88
4.87

Prime
FHA
commercial new
home
paper,
mortgage
5
4-6
yields
months
5. 49
2. 46
5. 77
3. 97
6. 16
3. 85
2. 97
5. 78
5. 60
3. 26
5.46
3. 55
5.45
3.97
5.45
4. 00
3. 96
5. 45
5. 46
3.88
5.46
3. 89
4.00
5.46
4.02
5. 45
5. 45
4. 17
5.45
4.25
5.45
4. 27
, 5. 45
4. 38
5.45
4.38
5. 45
4.38
5.45
4.38
5.44
4.38

4.38
4.38
4.38
4.38
4.38

6
Not charted.
Sources: Treasury Department, Board of Governors of the Federal Reserve
System, Federal Housing Administration, Standard & Poor's Corporation, and
Moodv's Investors Service.

33

COMMON STOCK PRICES, YIELD, AND EARNINGS
Stock prices fluctuated in a narrow range from mid-July to mid-August.
Index, 1941-43 = 10

Index, 1941-43 = 10
90

90

80

80

'COMPOSITE PRICE INDEX FOR '
500 COMMON STOCKS

70

70

60

60
. . . .,J 50

PERCENT

PERCENT

DIVIDEND YIELD ON COMMON STOCKS

RATIO

RATIO
*)t

20
—

}C

10

A

——

1

^^y
"x^-^
~~'

_'

l

PRICE/EARNINGS RATIO ON COMMON SI•QCKS
\
\

/X.
'
^—

.

t

!

1959

I

I

1

\_

!

1

1

1961

1960

!

1959
1960
1961
1962
1963
1964
1964: July
Aug __ _
Sept
Oct
_ __ _
Nov _
Dec
1965: Jan
__
Feb
Mar_
_ _
Apr _
May
_
_
June
__
July
Week ended:
1965: July 9 _ _
16
23
30
Aug. 6
13_

1

15

f

1

1962

i
1963

t

!

34

!

1

1

I

\

/L

10

1965

1964

COUNCIL OF ECONOMIC ADVISERS

Price index 1
Industrials
Total

Total

Capital
goods

Consumers'
goods

Public
utilities

Railroads

Dividend
yield 2
(percent)

57. 38
55. 85
66. 27
62. 38
69.87
81. 37
83. 22
82. 00
83. 41
84. 85
85. 44
83. 96
86. 12
86. 75
86. 83
87.97
89. 28
85.04
84.91

61. 45
59. 43
69. 99
65. 54
73. 39
86. 19
88. 19
86. 70
88. 27
89. 75
90. 36
88. 71
91. 04
91. 64
91. 75
93.08
94. 69
90.19
89.92

1941-^13 = 10
63.93
47. 35
47. 21
59.75
67. 33
57. 01
54. 96
58. 15
63. 30
62. 28
76. 34
73. 84
77.76
75.47
75.91
75. 40
77. 97
77.74
79. 13
79. 08
78. 97
79. 18
77. 24
77. 58
80. 19
79. 69
82. 52
80. 74
83.62
81. 50
84, 85
83.78
85. 21
86. 35
81.62
80.04
80.54
78.79

44. 15
46. 86
60. 20
59. 16
64. 99
69. 91
70. 35
71. 17
72. 07
73.37
74. 39
74. 24
75. 87
77. 04
76. 92
77.24
77. 50
74.19
74.63

35. 09
30. 31
32. 83
30. 56
37. 58
45. 46
48. 93
47. 17
47. 14
48. 69
48.01
45. 75
46.79
46. 76
46. 98
46.63
45. 53
42.52
43.31

3. 23
3.47
2. 98
3.37
3. 17
3. 01
2. 96
3.03
3.00
2. 95
2. 96
3.05
2. 99
2. 99
2. 99
2.95
2. 92
3.07
3.09

85.19
85.71
84.43
84.38
85.71
86. 20

90.22
90.77
89.40
89.37
90.80
91.33

80.50
81.76
79.54
80.36
82.53
83.00

75.01
75.45
74. 45
73.87
74.53
74.79

43.21
43.51
42.85
43.76
45.37
45.82

3.09
3.05
3.11
3.11
3.06
3.07

1
Includes SOU common stock, 425 are industrials; 50 are public utilities; and 25
are railroads. Weekly indexes for capital and consumer goods are Wednesday
figures:
all other weekly indexes are averages of daily figures.
2
Aggregate cash dividends (based on latest known annual rate) divided by
the aggregate monthly market value of the stocks in the group. Annual yields
are averages of monthly data. Weekly data are Wednesday figures.




—-.

-^

SOURCE. STANDARD AND POOR'S CORPORATION

Period

20

^x

79.26
80.08
77.98
77.86
79.83
79.78

Price/
earnings
ratio 3
17. 05
17. 09
21. 06
16. 68
17. 62
18.08

17.87
18.67
17. 58

3
Ratio of price index for last day in quarter to quarterly earnings (seasonally
adjusted annual rate). Annual ratios are averages of quarterly data.
Source: Standard and Poor's Corporation.

FEDERAL FINANCE
FEDERAL ADMINISTRATIVE BUDGET RECEIPTS AND EXPENDITURES
The budget deficit for fiscal 1965 was $8.5 billion, or $4.7 billion less than in fiscal 1964.

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

NET BUDGET RECEIPTS

1961

1962

1963

1964

1965

1966

BUDGET SURPLUS (+) OR DEFICIT (-J
(ENLARGED SCALE)

1961

1962

1963

1964

1965

1961

1962

1963

1964

1965

1966

COUNCIL OF ECONOMIC ADVISERS

SOURC& TREASURY DEPARTMENT AND BUREAU OF THE BUDGET

[Billions of dollars]
Net budg et expenditiires
N ational defe DSC l

Net
budget
receipts

Period

Fiscal year 1959
Fiscal year 1960
Fiscal year 1961
Fiscal year 1962___ __
Fiscal year 1963
Fiscal year 1964
Fiscal year 1965
1964: Apr
May
June
~ _
July
Aug
Sept
Oct
_
Nov
__
Dec
1965: Jan
Feb
Mar
Apr
_ _ __ _
May
June
July

Total

67.9
77. 8
77.7
81.4
86.4
89.5
93.0

80. 3
76.5
81. 5
87.8
92.6
97.7
96.5

46. 5
45. 7
47. 5
51. 1
52.8
54.2
50.1

6.6

7.9
7.5
9.5

4. 7

6. 1
12.4
3. 5
6.7

8.4
8.3

_ _ _ __

8. 9
5. 6
7. 5
11. 2

8.8

_

8.5
7.3

3.4
7.0

8.3

41.2
41.2
43. 2
46. 8
48. 3
49.8
46.2

1.7
1.5
1.2

42

.1

2. 3
1.6
1.4

1. 4

2

5.7

3. 5

3.2

(33)
()

3.9

(3)

4. 2
4. 2
4. 0
4. 5
4. 0
3. S
4. 5
4. 3
4. 3

7. 7
7. 1
8. 1

Military
assistance

4. 3
5. 1

3.8

7. 1

3. 5
3. 9
3. 7
4. 2

.3

3.7

13.4

4.9

3.8
4.3

3.8

7.2

3. 8

3. 6

.1
1
1
1
1
1
2
4

3. 6
4. 2
4. 1

8. 1
9. 1

i In addition to items shown, also includes atomic energy and defense related
services.
3
Includes guaranteed securities held outside the Treasury. Not all of total
shown is subject to statutory debt limitation.




4.6

7. 4
8. 1

10. 1

_

Total

Department of
Defense,
military

(3)

Budget
surplus
or
deficit (-)

-12.4
L 2
-3. 9
-6.4
-6.3
-8.2
-3.5
-1.3
— 1. 4
2. 9
-3.9
-1. 4
1. 6
-4.9
(4)

-2.0
.4
3.0

.3
Q
.O

4.3

— 3. 4

Public
debt
(end of2
period)

,

284.8
286. 5
289. 2
298. 6
306. 5
312. 5
317.9
308. 4
312. 3
312. 5
312. 0
314. 9
316. 5
316. 5
319. 3
318.8
318. 6
320. 6
318. 4
317.2
319. 8
317.9
317. 1

8

Less than $50 million.
< Deficit of $15 million.
NOTE.—Total budget receipts and expenditures exclude certain intragovernmental transactions.
Sources: Treasury Department and Bureau of the Budget.

35

FEDERAL CASH RECEIPTS FROM AND
PAYMENTS TO THE PUBLIC
In the second quarter, cash receipts exceeded cash payments by $5.1 billion/ on a seasonally adjusted basis, however,
the cash budget was approximately balanced.

BILLIONS OF DOLLARS
35

BILLIONS OF DOLLARS
35

20

+5

-5

EXCESS OF < :ASH

EXCESS OF CASH PAYMENTS
I
1
i
t
i
1959
1960

+5

SEASONALLY ADJUSTED

m S Pi m

i
!

RECEIPTS

HnMn

am U

*

I

I

I

1

1

?

t

t

t

1963

1962

1961

Cm

«BHH
1

!

!

1964

I

0

t

-5

!

1965

CALENDAR YEARS

j>OUR(:ES i TREASURY

DEPARTWENT AND BUREAU OF THE 1UDGET

COUN Cll OF ECONOMIC ADVISERS

[Billions of dollars]
Period
Fiscal year:
1959
1960
1961
1962
1963
1964
1965
Calendar year:
1959
1960
1961
1962
1963
1964
Quarterly total (Calendar years):
1964: I
II
III
IV
1965: I
II
1

Cash receipts
from the
public

Excess of
receipts or
payments
(-)

81.7
95. 1
97. 2
101. 9
109.7
115.5
119.7

94. 8
94. 3
99. 5
107. 7
113.8
120. 3
122.4

-13. 1
.8
-2. 3
-5.8
-4.0
-4.8
-2.7

87.6
98. 3
97.9
106. 2
112.6
115.0

95. 6
94. 7
104. 7
111. 9
117. 2
120. 3
Unadjusted

-8.0
3. 6
— 6. 8
-5.7
-4. 6
-5.3

28. 6
30. 2
30.9
30.6
28. 3
32.6

1.7
3. 2
-3.9
-6.3
2.4
5.1

30.3
33.4
27. 0
24. 3
30. 7
37.7

Includes adjustment for corporate tax payment acceleration.

36



Cash payments to
the public

Cash receipts
from the
public

Cash payments to
the public

Excess of
receipts or
payments
(-)

Se*isonally adjus ted
29. 5
*28. 7
28. 2
28. 7
'29.9
*32. 7

30. 5
29. 9
30. 2
29.8
30. 1
32.3

Sources: Treasury Department and Bureau of the Budget.

-1. 0
-1. 2
-2. 0
-1. 1
__ o
.5

FEDERAL BUDGET, NATIONAL INCOME ACCOUNTS BASIS
In the second quarter, Federal receipts rose $1 billion (seasonally adjusted annual rate) and expenditures about
$1A billion. As a result, the surplus increased from $2% billion to nearly $3 billion.

BILLIONS OF DOL LARS
140

BILLICDNS OF DOLLARS
140
SEA 5ONALLY ADJUSTED ANNL AL RATES

120

120

^
^>*«^.l ******

.-

-

RECEIPTS

/

1A/1

~~*\
-*>~

^

,-—<-C3>^

100

-^^

^*

-

EXPENDITURES
sn

0

flrt

r

!

i

i

!

1

1

I

1

+20

f

I

!

1

1

!

t

i

i

i

?

i

i

^0
+20

SEASOI- ALLY ADJUSTED ANNUAL RATES

SURPLUS

-

o

**„

"^ "

-I*-

• H ^^

Q

-

DEFICIT
i
i
1959

-20

i

t

1

\

\

\

1

\

1

1961

1960

1

f

!

t

!

I

f

)

t

T

-20

1965

1964

1963

1962
CALENDAR YEARS

SOURCE, DEPARTMENT OF C OMMERCE

CO LJNCIl OF ECONOMIC ADVISE RS

[Billions of dollars, quarterly data at seasonally adjusted annual rates]
Fed era 1 Governcaent expe nditures

Federal (jovernme nt receipt s
Period

Fiscal year :
1961
1962
1963
1964
1965 i
Calendar
year :
1959
1960
1961
1962
1963
1964
1964: I _ _
II__
III_
IV.
1965: !___
II 2_
1

Subsidies
GrantsPurless
Surplus
in-aid
chases Trans- to State
or
Net
current
of goods fer payinterest surplus deficit
and
and
paid
of Govt.
ments
local
(-)
enterservices
governprises
ments

Personal Corpo- Indirect ContriTotal tax and
business butions
rate
nontax profits tax and to social
insurreceipts
tax
nontax
accruals accruals
ance

Total

95.3
104.2
110.2
115. 1
119.4

43.6
47.3
49.6
50.7
51.5

20.3
22. 9
23. 6
25.3
27.0

13.3
14.2
15.0
15.6
16.5

18. 1
19.9
22. 1
23.6
24.5

98. 0
106.4
111.4
118. 1
119.3

55.5
60.9
63.4
66.8
65.0

25.6
27.2
28.6
29.6
30.3

6.9
7.6
8.4
9.8
10.8

6.8
6.8
7.5
8. 1
8.6

3.2
3.8
3.6
3.8
4.6

-2.7
-2.1
-1.2
-2.9
.2

89.7
96. 5
98.3
106.4
114.3
114. 5
114. 8
112. 0
114. 6
116. 8
122.7
123.7

39.9
43. 6
44. 7
48. 6
51. 5
48. 6
50.2
46. 5
48. 1
49. 8
53. 5
54.6

22 5
2l! 7
21.8
22.7
24. 5
26. 0
25. 7
25.9
26.2
26. 5
27.4
27.7

12. 5
13. 5
13.6
14. 6
15.3
16. 1
15.6
16.0
16.4
16.4
16.8
16.3

14.8
17. 7
18. 2
20. 5
23.0
23. 7
23.3
23.5
23.9
24.2
24.9
25. 1

91. 0
93.0
102. 1
110. 3
114. 0
118.3
117. 5
119. 6
118.2
117.9
120.2
120.8

53.7
53. 5
57.4
63.4
64.4
65.3
65. 0
67. 0
64.9
64.3
64.9
65.9

21.9
23.4
27. 0
27.7
29.2
29.9
30.3
29. 8
29.7
29.8
31.2
30.5

6. 8
6. 5
7.2
8.0
9. 1
10.4
9. 9
10.3
10.6
10. 8
10.8
11. 0

6.4
7. 1
6.6
7.2
7.8
8.4
8.3
8.2
8.5
8.4
8.6
8.7

2.1
2.5
3. 8
4. 0
3.6
4.3
3.9
4.2
4.4
4.7
4.7
4.7

-1.2
3.5

Estimates.

2 Preliminary.

0

Q

*—• O. O'

-3.8:

.3
-3.8.
-2.6
-7.6
-3.6
-1. 1
2. 5
2.9

Source: Department of Commerce.

NOTE.—Series revised beginning 1929. For details, see Survey of Current
Business, August 1965. Data for Alaska and Hawaii included beginning 1960.




37

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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
EMPLOYMENT, UNEMPLOYMENT, AND WAGES
Status of the Labor Force
Selected Measures of Unemployment and Part-Time Employment
Unemployment Insurance Programs
Nonagricultural Employment
Weekly Hours of Work—Selected Industries
Average Hourly and Weekly Earnings—Selected Industries
PRODUCTION AND BUSINESS ACTIVITY
Industrial Production
Production of Selected Manufactures
Weekly Indicators of Production
New Construction
New Housing Starts and Applications for Financing
Business Sales and Inventories—Total and Trade
Manufacturers' Shipments, Inventories, and New Orders
Merchandise Exports and Imports
U.S. Exports and Imports of Goods and Services
U.S. Balance of International Payments
PRICES
Consumer Prices
_
Wholesale Prices
Prices Received and Paid by Farmers
MONEY, CREDIT, AND SECURITY MARKETS
Money Supply
Selected Liquid Assets Held by the Public
Bank Loans, Investments, Debits, and Reserves
Consumer and Real Estate Credit
Bond Yields and Interest Rates
Common Stock Prices, Yield, and Earnings
FEDERAL FINANCE
Federal Administrative Budget Receipts and Expenditures
Federal Cash Receipts from and Payments to the Public
Federal Budget, National Income Accounts Basis

Page
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

.
_

26
27
28
29
30
31
32
33
34
35
36
37

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.

38




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