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93d Congress, 1st Session

Economic Indicators
August 1973
Prepared for the Joint Economic Committee by the




Council of Economic Advisers

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1973

ECONOMIC
(Created pursuant to Sec. 5(a) of Public Law 3045 79th Cong.)
WRIGHT PATMAN, Texas, Chairman
WILLIAM PROXMIRE, Wisconsin, Vice Chairman
HOUSE OF REPRESENTATIVES
RICHARD BOLLING (Missouri)
HENRY S. REUSS (Wisconsin)
MARTHA W. GRIFFITHS (Michigan)
WILLIAM S. MOORHEAD (Pennsylvania)
HUGH L. CAREY (New York)
WILLIAM B. WIDNALL (New Jersey)
BARBER B. CONABLE, Jr. (New York)
CLARENCE J. BROWN (Ohio)
BEN B. BLACKBURN (Georgia)

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

JOHN R. STARK, Executive Director
LOUGHLIN F. McHuGH, Senior Economist

COUNCIL OF
HERBERT STEIN, Chairman
GARY L. SEEVERS
Economic Indicators prepared under supervision of FRANCES M. JAMES

[PUBLIC LAW 120—81sT CONGRESS; CHAPTER 237—Isr SESSION]
[SJ. Res. 55]
To print the monthly publication entitled "Economic Indicators"
l\esolved 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 a'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 Art Production Branch, Office of the Secretary, Department of Commerce*

Economic Indicators, published monthly5 is available at 5 5 cents a single copy
or by subscription at $6.50 per year ($1.75 additional for foreign mailing) from:
OF DOCUMENTS
GOVERNMENT PRINTING
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 $3.60 additional per year.

TOTAL OUTPUT, INCOME, AND SPENDING
THE NATION'S INCOME, EXPENDITURE, AND SAVING
Gross national product increased $29.5 billion in the second quarter to a seasonally adjusted annual rate of $1/272.0
billion, accordin$ to revised estimates. The increase for the first quarter was $43.3 billion.
[Billions of dollars; quarterly data at seasonally adjusted annual rates]
Ilovernme nt

Persons

E xpenditur es
N et receipts
PerEquals:
Less:
Less:
Less:
sonal
Tax
Interest Total Personal
TransTrans- Equals:
saving
Purand
paid and exclud- consumpfers,
fers,
Equals: Total
or
tion
nontax interest,
chases
transfer
ing
expendinterest,
Net
disexpendof goods
interest itures saving receipts
payand
and
receipts itures
or
and
and
ments
sub—
sub—
accruals sidies 2
2
services
transto forsidies
fers
eigners

Disposab le persona 1 income
Period
Total l

Surplus
or
deficit
income
and
product
accounts

1966
1967
1968
1969
1970
1971
1972

511. 9
546. 3
591. 0
634. 4
691. 7
746. 0
797. 0

13. 0
13. 9
15. 1
16.7
17. 9
18. 7
20. 7

498. 9
532.4
575. 9
617. 7
673. 8
727.3
776. 2

466. 3
492. 1
536. 2
579. 5
617. 6
667.2
726. 5

32.5
40. 4
39. 8
38. 2
56. 2
60. 2
49.7

213.3
228. 9
263. 5
296. 7
302. 5
322. 0
368. 2

55. 5
62. 8
70. 7
77. 9
93. 2
105. 9
115. 9

157. 9
166. 2
192.7
218.8
209. 4
216. 2
252. 2

212. 3
242. 9
270. 3
287. 9
312.7
340. 2
370. 9

55. 5
62. 8
70. 7
77. 9
93. 2
105. 9
115. 9

156. 8
180. 1
199. 6
210. 0
219. 5
234. 3
255. 0

1972: I
II
III_ _
IV___

772.
785.
800.
828.

8
4
9
7

19. 8
20. 3
21. 0
21. 8

753.0
765. 1
779. 9
806. 9

700.
719.
734.
752.

2
2
1
6

52. 9
45. 9
45. 8
54.4

356. 9
363. 3
370. 5
382.0

111.
113.
114.
125.

245.
250.
256.
256.

1
3
5
9

362. 2
367.2
368. 5
385. 8

111. 8
113. 0
114. 0
125. 1

250.
254.
254.
260.

3
2
7
7

-5.4
-3. 9
2.0
-3. 8

1973: I
II*._.

851. 5
869. 7

22. 1
23. 0

829. 4
846. 7

779. 4
795. 6

50. 0
51.0

402. 7
414. 8

125. 3
127. 8

277. 4
287.0

393. 9
403. 1

125. 3
127. 8

268. 6
275. 3

8.9
11. 7

Business

.

-30. 1
-23. 5
-30. 6
-42. 0
-39. 3
-41. 4
— 53. 9

2. 8
3. 0
2. 9
2. 9
3. 2
3.6
3. 7

43.4
46. 2
50. 6
55. 5
62. 9
66. 3
73. 5

38. 1
41. 0
48. 1
53. 6
59. 3
65. 5
78. 1

5.3
5. 2
2. 5
1. 9
3. 6
.8
-4. 6

167. 5
174. 7
181.5
189. 4

-50.
-50.
-57.
-57.

2
6
0
8

3. 9
3. 8
3. 8
3.5

70. 3
69. 9
74. 0
79. 7

75. 8
75. 6
77. 7
83. 2

-5.
-5.
-3.
-3.

194. 5
198. 2

— 63. 0
-65. 1

3.0
3. 3

89. 7
97. 2

89. 7
94. 4

91. 3
93.0
95. 4
97. 0
97. 0
111. 8
124. 4

121.
116.
126.
139.
136.
153.
178.

1972: I
II
III
IV

117. 3
124. 1
124. 5
131. 6

1973: I
II".

131. 5
133. 1

_ _

International

Net
Net e xports of goods
j Gross
a nd service s
transfers
Excess of Total
Statis- national
Excess
Gross
o
f
to
forGross
transfers income
tical
product
private
retained domestic
or
or
discrepor
t eigners
investby
perearn-3
Equals:
of
net
receipts
expendancy
ment sons and Exports Less:
invest-4
ings
Net
exports
iture
ment
Imports exports
(-)
(_)5
Government

Period

1966
1967
1968_
1969
1970
1971
1972

8
0
0
1

1. 1
-13. 9
-6. 8
8.8
-10. 1
-18. 1
-2. 8

_

4
6
0
0
3
2
3

1
Personal Income (p. 5) less personal tax and nontax payments (lines, penalties,
etc.).
2
Government transfer payments to persons, foreign net transfers by Government, net interest paid by government, subsidies less current surplus of government
enterprises, and disbursements less wage accruals.
3
Capital consumption allowances, corporate inventory valuation adjustment,
undistributed corporate profits, and private wage accruals less disbursements.
Does not include retained earnings of unincorporated business, which are included
in disposable personal income.




5
7
8
5

.0
2.8

-2.4
-2. 2
4.
1. 0

—.4
2. 8
8. 4
9.4
9.4
7. 6
7.0

750. 9
794. 6
866. 9
936. 3
983. 5
1, 058. 8
1, 156. 6

-1. 0
7
97
-6. 1
-6. 4
-3. 4
-1. 5

749. 9
793. 9
864. 2
930. 3
977. 1
1, 055. 5
1, 155. 2

119. 3
143. 3
164. 7
198. 9

-6. 7
-1. 0
1. 6
.2

1,
1,
1,
1,

1,
1,
1,
1,

3. 0 1, 241. 3
. 5 1, 270. 1

1. 1
1. 9

112. 5
142. 4
166. 5
199. 2

1, 242. 5
1, 272. 0

4
Private business investment, purchases of capital goods by private nonprofit
institutions,
and residential housing.
5
Net foreign investment less capital grants received by United States, with
sign changed.
Source: Department of Commerce.

GROSS NATIONAL PRODUCT OR EXPENDITURE
In the second quarter, gross national product (seasonally adjusted) rose at an annual rate of 9=9 percent, reflecting arl
inflation rate of 7.3 percent and an expansion of 2.4 percent in real GNP. The rise in real GNP is substantially lower
and the price rise somewhat higher than those in the first quarter.
BILLIONS OF DOLLARS
11,400

BILLIONS OF DOLLARS
1,400
SEASONALLY ADJUSTED ANNUAL RATES

1,200

1,200

GROSS NATIONAL PRODUCT

1,000

1,000

800

800

600

600
GOVERNMENT PURCHASES
OF GOODS AND SERVICES

200

200
NET EXPORTS OF GOODS
AND SERVICES
\

I
1967

I
1968

GROSS PRIVATE DOMESTIC
INVESTMENT

I

I
1969

I

I

1970

1971

1972

SOURCE* DEPARTMENT OF COMMERCE

1963
1964
1965
1966_.
1967...
1968
1969
1970
1971
1972
1972: I
II
III
IV
1973: I
II

COUNCIL OF ECONOMIC ADVISERS

Total
Personal Gross
conTotal
gross
private
sump- domestic
national gross
tion
product national
investin 1958 product expend- ment
itures
dollars
Billions <?f dollars; quarterly

Period

.

__

661. 0
581. 1
617. 8
658. 1
675.2
706. 6
725. 6
722.5
745.4
790. 7
768. 0
785. 6
796. 7
812.3
829. S
834.8

590. 5
632.4
684. 9
749. 9
793. 9
864. 2
930. 3
977. 1
1, 055. 5
1, 155. 2
1, 112. 5
1, 142. 4
1, 166. 5
1, 199. 2
1, 242. 5
1, 272. 0

375.0
401.2
432. 8
466.3
492. 1
536. 2
579. 5
617.6
667. 2
726. 5
700. 2
719. 2
734. 1
752. 6
779.4
795.6

87. 1
94.0
108. 1
121.4
116. 6
126. 0
139.0
136.3
153. 2
178. 3
167.5
174. 7
181.5
189.4
194. 5
198.2

1
This category corresponds closely with budget outlays for national defense,
shown on p. 36.




1973

Gove rnment \>urchases of good s and
Net
services
exports
Federal
of goods
State
Total
and
and
National
Total defense1 Other local
services

Implicit
price
deflator
for total
GNP,
1958= 1002

data at s easonalby adjuste d annual rates

122. 5
128.7
6.9 137. 0
5.3 156.8
5.2 180. 1
2. 5 199. 6
1. 9 210.0
3. 6 219. 5
. 8 234. 3
-4. 6 255. 0
-5.5 250. 3
-5.7 254. 2
-3.8 254. 7
-3. 5 260. 7
. 0 268. 6
2. 8 275. 3
5.9

8. 5

64. 2
65. 2
66. 9
77.8
90. 7
98. 8
98.8
96. 2
98. 1
104. 4
106. 0
106. 7
102. 3
102. 7
105.5
107. 3

50.8
50.0
50. 1
60.7
72. 4
78. 3
78.4
74.6
71. 6
74. 4
76. 5
76. 6
71. 9
72. 4
74. 3
74.2

13. 5
15.2
16. 8
17. 1
18. 4
20. 5
20. 4
21. 6
26. 5
30. 1
29.5
30. 1
30. 4
30. 3
31. 2
33. 1

58.2
63. 5
70. 1
79.0
89.4
100. 8
111. 2
123. 3
136. 2
150. 5
144.3
147. 5
152. 4
158.0
163. 0
168. 0

107. 17
108. 85
110. 86
113. 95
117. 59
122. 30
128. 20
135. 24
141. 60
146. 10
144. 85
145. 42
146. 42
147. 63
149. 81
152. 46

2
Gross national product in current dollars divided by gross national product
in 1958 dollars.
Source: Department of Commerce.

NATIONAL INCOME
income rose $24.4 billion (seasonally adjusted annual rate) in the second quarter, according to preliminary
estimates. Employee compensation accounting for most of the gain, was up $17.5 billion because of rising manhours and rates of pay.
\
BILLIONS OF DOLLARS
1100

BILLIONS OF DOLLARS
1,100
SEASONALLY ADJUSTED ANNUAL RATES

1,000

1,000

900

900

TOTAL NATIONAL INCOME

800

800

700

700

600

600

500

500

CORPORATE PROFITS AND
INVENTORY VALUATION ADJUSTMENT

PROPRIETORS' AND
RENTAL INCOME

100

100

1967

1973

1972

COUNCIL OF ECONOMIC ADVISERS

SOURCEs DEPARTMENT OF COMMERCE

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

Period

1963
1964
1965
1966
1967___
1968
1969
1970
1971
1972
1972: I
II....
III
IV
1973: I
II*
1
2 Includes

_.

Compensation
of em- l
ployees

Proprietoirs; income
Farm 2

interest

Net

Corporalbe profits and inventory va luation acIjustment
Total

Profits Inventory
before valuation
taxes adjustment

-0.5

481. 9
518.1
564.3
620.6
653. 6
711. 1
766. 0
800. 5
859. 4
941. 8

341. 0
365.7
393.8
435. 5
467. 2
514 6
566. 0
603. 9
644. 1
707. 1

13. 1
12.1
14.8
16. 1
14.8
14.7
16.7
16. 9
16. 8
20. 2

37. 9
40.2
42.4
45. 2
47. 3
49. 5
50. 5
50. 0
51.9
54. 0

17. 1
18.0
19.0
20. 0
21. 1
21. 2
22.6
23. 9
24. 5
24. 1

13.8
15.8
18.2
21. 4
24. 4
26. 9
30.5
36.5
42. 0
45.2

58. 9
66.3
76.1
82. 4
78.7
84. 3
79.8
69.2
80. 1
91. 1

59. 4
66.8
77.8
84. 2
79. 8
87. 6
84.9
74. 0
85. 1
98.0

— .5
-1.7
— 1. 8
— 1.1
-3. 3
— 5. 1
-4.8
-4.9
-6. 9

911.
928.
949.
978.

684.3
699.6
713. 1
731. 2

19. 5
19. 9
19.8
21. 8

53. 1
53. 3
54.3
55. 3

24. 1
22. 6
24. 9
24. 9

43. 9
44. 8
45. 7
46. 6

86. 2
88. 0
91. 5
98. 8

92. 8
94. 8
98.4
106. 1

— 6. 6
-6.7
-6. 9
-7. 3

757.4
774. 9

24.3
24.4

56. 3
57. 1

24.7
24. 6

47.9
49.4

104. 3
109. 0

119. 6
130. 1

-15.4
— 21. 1

0
3
2
6

1, 015. 0
1, 039. 4

employer contributions for social insurance. (See also p. 4.)
Excludes farm profits of corporations engaged in farming and therefore differs
from net farm income (including net inventory change) on p. 6 which includes
such profits.




Business
and professional

Rental
income
of
per-

Source: Department of Commerce.

SOURCES OF PERSONAL INCOME
Personal income rose $7.3 billion (seasonally adjusted annual rate) in July, following a revised increase of $7.^
billion in June. Wage and salary disbursements increased $4,7 billion, compared with $6.2 billion a month earlier
largely because disbursements in commodity—producing industries rose less rapidly than in June.
BILLIONS OF DOLLARS
1,200 f

BILLIONS OF DOLLARS
1,200

1,000

1,000

800

600 ^

400

200

200

1967
SOURCE:

DEPARTMENT OF COMMERCE

Period

1965
1966
.
1967
1968
1969
1970
1971
1972
1972: June
July
Aug____
Sept
Oct
Nov____

COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars; monthly data at seasonally adjusted annual rates]
Wage
Rental
Other Propriet ors' income income
Total
and
Transfer
Divi- Personal
labor 1 2
Business
interest
personal salary
paydends
of
and pro- persons
income disburseincome
Farm
income ments
1
fessional
ments

538.9
587. 2
629. 3
688. 9
750. 9
808. 3
863. 5
939. 2
927. 0
935. 2
944. 4
951.3
967. 0
977. 6
Dec
983. 6
1973: Jan
989. 1
Feb
997. 4
Mar
1, 003. 3
Apr
1, Oil. 6
M a y _ _ _ 1, 018. 7
1, 026. 6
June p
July _ _ 1, 033. 9

358.9
394. 5
423. 1
464. 9
509. 7
542. 0
573. 3
627. 8
624. 6
627. 0
632. 6
638. 7
643. 8 j
648. 4
654. 0 !
661. 7
667. 2
671. 1
677. 6
682. 0
688. 2
692. 9 !

18.7
20. 7
22. 3
25. 4
28. 4
32. 2
36. 6
40. 7
40. 6
40. 9
41. 3
41. 6
42. 0
42. 3
42. 7
43. 0
43. 3
43. 6
43. 9
44. 2
44. 5
44. 8 j

14.8
16. 1
14. 8
14. 7
16. 7
16. 9
16. 8
20. 2
19. 6
19. 3
19. 8
20. 3
20. 8
22. 4
22. 3
24. 0
24. 3
24. 6
24. 2
24. 4
24. 6
24. 5

42.4
45. 2
47. 3
49. 5
50. 5
50. 0
51. 9
54. 0
52. 4
54. 0
54. 5
54. 3
55. 1
55. 1
55. 6
56. 1
56. 3
56. 4
56. 8
57. 1
57. 3
57. 6

1
The total of wage and salary disbursements and other labor income differs
from compensation of employees (see p. 3) in that it excludes employer contributions for social insurance and the excess of wage accruals over wage disbursements.
2
Consists of employer contributions to private pension, health, and welfare
funds; compensation for injuries; directors' fees; military reserve pay; and a few
other minor items.




19.0
20. 0
21. 1
21. 2
22. 6
23. 9
24. 5
24. 1
19. 8
24. 4
25. 2
25. 1
25. 1
24. 7
24. 9
24. 8
24. 8
24. 6
24. 3
24. 6
24. 9
25. 0

19. S
20. 8
21.4
23. 6
24. 3
24. 7
25. 1
26. 0
25. 9
26. 1
26. 3
26. 2
26. 3
26. 3
26. 5
26. 8
26. 9
27. 0
27. 3
27. 3
27. 4
27. 6

38. 7
43. 6
48. 0
52. 9
59. 3
67. 5
73. 0
78. 0
78.2
78. 3
78. 5
78. 9
79. 6
80. 4
81. 1
81. 9
82. 6
83. 4
84. 5
85. 7
86. 5
87.6

39. 9
44. 1
51. 8
59. 6
65. 8
79 1
93. 2
103. 0
100. 2
100. 6
101. 3
101. 4
109. 7
113. 7
112. 6
112. 5
113. 8
114. 5
115. 3
115. 9
116. 0
117. 2

Less: Peronagrisonal con- N
tributions cultural
for social personal
3
insurance income

13.4
519. 5
17. 7
566. 3
20. 5
609. 4
22. 8
668. 8
26. 3
728. 3
784. 8
28. 0
30. 9
839. 8
34. 7
911. 5
34. 4
900. 1
35. 4
908. 6
917. 3
35. 0
35. 2
923. 6
35. 4
938. 8
947. 7
35. 7
35. 9
953. 6
41.7
957. 4
41. 9
965. 3
42. 0
970. 9
42. 4
979. 5
42. 5
986. 4
42. 8
994. 2
43.4 j 1, 001. 4

3
Personal income exclusive of net income of unincorporated farm enterprises,
farm wages, agricultural net interest, and net dividends paid by agricultural
corporations.
Source: Department of Commerce.

DISPOSITION OF PERSONAL INCOME
Because of the sharp price rise, real per capita disposable income was little changed in the second quarter but was
?till 5 percent above a year earlier.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

1,000

1,000
900

1967
COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF COMMERCE

Period

.Less :
PerPersonal
sonal tax and
income nontax
payments

Less: Perse nal outla^^s
Equals:
Persoilal consurnp2 tion
Equals:
Disex penditure s
Personal
Total
posable
saving
personal personal1 Durable NonServices
income outlays
goods durable
goods

Per cai )ita disposable personal
incc>rne

Current
dollars

Doi lars

Billions of dollars
538.9
1965
587. 2
1966
1967 _
629. 3
1968__ _ _ 688. 9
750.
9
1969
1970__ _ _ 808. 3
863. 5
1971
939. 2
1972

65.7
75. 4
83. 0
97. 9
116. 5
116. 6
117. 5
142. 2

473.2
511. 9
546. 3
591. 0
634. 4
691. 7
746. 0
797. 0

444. 8
479. 3
506. 0
551. 2
596. 2
635. 5
685. 8
747. 2

66. 3
70. 8
73. 1
84. 0
90. 8
91. 3
103. 6
117. 4

1958
dollars

Saving
as percent of Population
disposable
(thou-3
personal sands)
income
(percent)

191. 1
206. 9
215. 0
230. 8
245. 9
263. 8
278. 7
299. 9

175. 5
188. 6
204. 0
221. 3
242. 7
262. 6
284. 9
309. 2

28.4
32. 5
40. 4
39. 8
38. 2
56.2
60. 2
49. 7

2,436
2, 604
2, 749
2, 945
3, 130
3, 376
3, 603
3, 816

2, 239
2, 335
2, 403
2,486
2. 534
2, 610
2, 680
2, 767

6. 0
6. 4
7. 4
6. 7
6. 0
8. 1
8. 1
6. 2

194,
196,
198,
200,
202,
204,
207,
208,

303
560
712
706
677
879
045
842

2,
2,
2,
2,

716
740
771
841

6. 8
5. 8
5. 7
6. 6

208,
208,
209,
209,

259
634
058
514

2, 878
2,877

5. 9
5. 9

209, 871
210, 221

iSeasc naliy adji isted annu ai rates
1972: ! _ _ _
II..
TIL.
IV-.

910. 8
926. 1
943. 7
976. 1

1973: I.__. 996. 6
II... 1,019.0

138.
140.
142.
147.

0
7
8
4

145. 1
149. 3

8
4
9
7

720. 0
739. 5
755. 1
774. 3

111.
115.
120.
122.

5
1
2
9

288. 8
297. 9
302. 3
310. 7

300. 0
306.2
311. 6
319. 0

52. 9
45. 9
45. 8
54. 4

3,
3,
3,
3,

851.5
869. 7

801. 5
818. 7

132. 2
132. 8

322. 2
330. 3

325. 0
332.6

50. 0
51. 0

4,057
4, 137

772.
785.
800.
828.

1
Includes personal consumption expenditures, interest paid by consumers,
and personal transfer payments to foreigners.
2 See p. 2 for total personal consumption expenditures.




711
765
831
955

3
Includes Armed Forces abroad. Annual data are for July 1; quarterly data are
for middle of period, interpolated from monthly data.
Source: Department of Commerce.

FARM INCOME
In the second quarter, nef farm income excluding inventory change (seasonally adjusted) rose about 2 percent an<
including inventory change about 1 percent. Real net income per farm was 14 percent higher than a year earlier.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
SEASONALLY ADJUSTED ANNUAL RATES

80

80

60

60

40

40

NET FARM INCOME
INCLUDING NET INVENTORY
CHANGE

20

20

!

L

f

1967

f

J

1968

1969

I

J

J

I
1970

f

J

f

Personal income re ceived by
total i"arm popu lation

]income received fro m farmingr
Net t D farm
oper ators

Realize>d gross

1965-.

1966
1967
1968
1969
1970
1971
1972

„

I
1973

COUNCIL OF ECONOMIC ADVISERS

SOURCE.- DEPARTMENT OF AGRICULTURE

Period

J

1972

1971

From
all
sources

From
farm
sources

23. 6
24. 9
24. 0
25. 1
27. 6
28. 3
29.2
34.0

13. 5
14.4
13. 1
13. 2
14. 9
15. 1
15.2
18. 1

From
nonfarm
sources

Net inc ome per
farm including net
inventoryT change 3

ProducCash
tion ex- Exclud- Includreceipts penses ingnetin- ing net in- Current
1967
from
Total i
ventory ventory
dollars dollars 4
2
marketchange change
ings
Billions <}f dollars
Dol lars

10. 0
10. 5
10. 9
11. 9
12.7
13. 2
14. 0
15. 9

44. 9
49. 7
49. 0
50.9
55. 6
57.8
59. 7
68. 9

39. 3
43.3
42. 7
44. 1
48. 1
50. 5
52. 8
60. 7

30. 9
33. 4
34. 8
36.2
38. 8
41. 0
44. 5
49. 2

14. 0
16. 3
14.2
14.7
16. 8
16. 8
15.2
19. 7

15.0
16. 3
14. 9
14. 8
16. 9
16. 9
16. 9
20. 3

4,465
4,990
4, 707
4, 828
5,620
5, 725
5,817
7,089

4,700
5,092
4,707
4,642
5, 156
5, 022
4, 888
5,717

19. 6
20. 0
19. 9
21. 9
24.4
24. 7

6, 830
6, 970
6,930
7,630
8,620
8,720

5,600
5, 620
5, 540
6, 060
6, 580
6,410

Seaso natly adju sted annu at rates

1972: I
II
III

rv

1973: I
II
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 Census of Agriculture definition of a farm. The number of farms is
held constant within a year.




65. 8
68. 1
68. 7
72. 8
79.8
82.5

57.8
59. 8
60.5
64. 6
72.4
75.5

47. 0
48. 8
49. 4
51. 5
55. 8
58. 0

18. 8
19. 3
19. 3
21. 3
24. 0
24. 5

* Income in current dollars divided by the index of prices paid by farmers for
family living items on a 1967 base.
Source: Department of Agriculture.

CORPORATE PROFITS
Preliminary estimates put corporate profits before taxes at $130.1 billion (seasonally adjusted annual rate) in the
second quarter, $10.5 billion above the first quarter. The corresponding increase in profits including inventory valuation adjustment was $4.7 billion.
BILLIONS OF DOLLARS
125

25

25 ~

1973

1967

COUNCIL OF ECOHOMIC ADVISERS

SOURCE: DEPARTMENT Of COMMERCE

[Billions of dollars; quarterly data at seasonally adjusted annual rates]
CorjDerate pr ofits
(befc)re taxes) arid invei itory
a fter taxe s
Corpo- Profits
valuation adjustme it
rate
plus
TransCorpo- CorpoM anufactui ing
capital capital
portation.
rate
rate
conconDiviUncomtax
profits
NonDurable durable
All ! before liabil- Total dend distrib- sump- sumpmunition
tion
payuted
goods
other
taxes
ity
Total indusgoods cations,
ments profits allow-2 allow-3
and
ances ances
tries
public
tries
utilities

Con)orate pr ofits
Period

All
industries

1965... -.
1966»
1967
1968
1969.. ___
1970. — .

76. 1
82. 4
78.7
84 3
79. 8
69. 2
80. 1
91. 1

39. 3
42. 6
38. 7
41. 7
36. 6
27.8
32. 5
40. 1

22. 8
24. 0
20. 7
22. 4
18. 8
10. 5
14.7
20. 2

16. 6
18. 6
18.0
19. 3
17.7
17.3
17. 8
20. 0

11. 1
11. 9
10. 8
10. 6
10. 1

86.2
88.0
91. 5
98. 8

37.3
38.7
39. 9
44. 7

18.7
20.2
19. 5
22. 3

18. 6
18. 5
20. 4
22. 4

1973: L_._ 104. 3
109. 0
II*

49.7

26. 9

22.8

1971. —

1972

1972: I
II—

III..
IV..

25.6
27. 9
29. 1
32. 0
33. 1
33. 7
39. 1
41. 7

77. 8
84. 2
79. 8
87. 6
84. 9
74. 0
85. 1
98. 0

31.3
34.3
33. 2
39. 9
40. 1
34. 8
37. 4
42. 7

46. 5
49. 9
46. 6
47. 8
44.8
39.3
47.6
55.4

19. 8
20. 8
21. 4
23. 6
24. 3
24. 7
25. 1
26. 0

26. 7
29. 1
25. 3
24. 2
20. 5
14.6
22. 5
29. 3

36. 4
39. 5
43. 0
46. 8
51. 9
56.0
60. 4
65. 9

82. 9
89. 5
89. 6
94 6
96.8
95. 2
108. 0
121. 3

8. 5
8. 9

9.8
9.9

40.4
40.4
41. 7
44. 3

92. 8
94. 8
98.4
106. 1

40.6
41.4
42. 9
45. 9

52. 2
53.4
55. 6
60. 3

25. 7
25.9
26. 2
26. 4

26. 5
27.5
29. 4
33. 9

63. 4
66. 2
66. 0
68. 0

115. 6
119. 6
121. 6
128. 3

9.2

45.4

119. 6
130. 1

52. 7
57. 5

66. 9
72.6

26. 9
27. 3

40. 0
45. 2

69. 3
70. 6

136. 2
143. 2

7.8

8. 6

9.3

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




Source: Department of Commerce.

GROSS PRIVATE DOMESTIC INVESTMENT
Gross private domestic investment rose again In the second quarter, with most of the Increase attributable to nonresi*
dentia! investment.
BILLIONS OF DOLLARS

BILLIONS OF -DOLLARS

200

200

50

I

1967

1968

SOURCES: DEPARTMENT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars; quarterly data at seasonally adjusted annual rates]
Fixed in vestment
Total
gross
nrivate
domestic
investment

Period

Resid ential
struc tures

N onresidenl;ial

Total

Stru(jtures
Total
Total

Nonfarm

Produce rs' durable equlipment
Total

Nonfarm

Total

Nonfarm

Change in business in\rentories

Total

Nonfarm

87. 1
94 0
108. 1
121.4
116. 6
126. 0
139. 0
136. 3
153. 2
178. 3

8L 3
88.2
98. 5
106. 6
108.4
118. 9
131. 1
131. 7
147. 1
172. 3

54. 3
61. 1
71. 3
81. 6
83. 3
88. 8
98. 5
100. 6
104. 4
118. 2

19. 5
21. 2
25. 5
28. 5
28. 0
30. 3
34. 2
36. 1
37. 9
41. 7

18.8
20.5
24. 9
27. 8
27. 3
29. 6
33. 5
35. 3
37. 0
40. 8

34.8
39. 9
45. 8
53. 1
55. 3
58. 5
64. 3
64. 4
66. 5
76. 5

31. 2
36.3
41. 6
48. 4
50. 0
53. 6
59. 2
58. 9
60. 9
69. 8

27.0
27. 1
27. 2
25. 0
25. 1
30. 1
32. 6
31. 2
42. 7
54. 0

26. 4
26.6
26. 7
24. 5
24. 5
29. 5
32. 0
30. 7
42. 2
53. 5

5. 9
5. 8
9. 6
14. 8
8.2
7. 1
7.8
4.5
6. 1
6.0

5. 1
6. 4
8. 6
15.0
7. 5
6. 9
7. 7
4. 3
4. 5
5. 6

1972: I
11
III
IV

167. 5
174. 7
181. 5
189. 4

165. 8
169. 2
172. 9
181. 2

114.
116.
118.
124.

41. 0
41. 5
41. 3
43. 0

40. 1
40. 6
40. 4
42. 1

73. 1
74. 9
77. 0
81. 2

67. 3
68. 9
69. 8
73. 4

51. 8
52. 8
54, 5
56.9

51.2
52. 3
53. 9
56.4

1.7
5. 5
8. 7
8.2

1. 4
4. 8
8. 4
7. 9

1973: I
II

194. 5
198. 2

189. 9
193. 7

130. 9 |
134. 1

45. 3
47. 2

44. 4
46. 3

85. 5
86. 9

77. 8
78. 4

59. 0
59. 6

58.4
59. 1

4.6
4. 5

4. 4
4. 4

1963
1964
1965
1966
1967
1968
1969
1970
1971
1972

_

_

Source: Department of Commerce.

8




0
3
3
3

EXPENDITURES FOR NEW PLANT AND EQUIPMENT
Businessmen In April-May were projecting a large rise in plant and equipment expenditures from 1972 to 1973.
The strong increase of $41A billion (seasonally adjusted annual rate) from the fourth quarter of 1972 to the first quarter
of 1973 fell slightly short of expectations.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

TOTAL NEW PLANT AND EQUIPMENT

40

20
1967

1973

J/ SEE FOOTNOTE 3 BELOW.
-SOURCE: DEPARTMENT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS

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

Total1
Total

1965
1966
1967
1968
1969
1970
1971
1972
19733
1972: I
II
III
IV
1973: I
II3
III 3

IV3

54. 42
63. 51
65. 47
67. 76
75. 56
79. 71
81. 21
88. 44
100. 12
86.79
87. 12
87. 67
91. 94
96. 19
98. 57
101. 80
103. 44

23. 44
28. 20
28. 51
28. 37
31. 68
31. 95
29. 99
31. 35
37. 16
30. 09
30. 37
30. 98
33. 64
35. 51
37. 05
38. 01
37. 78

Nonmanufacturing
Trarisportat ion

Di
ab
goc

Nonurable
goods

Total

11.
14.
14.
14.
15.
15.
14.
15.
19.
15.
14.
15.
16.
17.
19.
19.
19.

11. 94
14. 14
14. 45
14. 25
15. 72
16. 15
15. 84
15. 72
18. 13
15. 02
15. 60
15. 31
16. 78
17. 63
17. 91
18. 34
18. 50

30, 98
35. 32
36. 96
39. 40
43. 88
47. 76
51. 22
57. 09
62. 96
56.70
56. 75
56. 70
58. 30
60. 68
61. 52
63. 79
65. 66

1
Excludes agricultural business; real estate operators; medical, legal, educational, and cultural service; and nonprofit organizations.
23 Includes trade, service, construction, finance, and insurance.
Estimates based on expected capital expenditures as reported by business
in late April and May 1973. Includes adjustments when necessary for systematic
pendencies in expectations data.




Mining

1.46
1. 62
1. 65
1. 63
1. 86
1. 89
2. 16
2. 42
2.74
2. 42
2. 38
2. 40
2. 46
2. 59
2. 68
2. 90

Railroad

Air

1. 99
2. 37
1. 86
1. 45
1. 86
1.78
1. 67
1. 80
2. 01
2. 10
1. 88
1. 50
1.71
2. 11
1. 75
2. 05

1.22
1. 74
2. 29
2. 56
2. 51
3. 03
1. 88
2,46
2. 21
1.96
2. 89
2. 67
2.33
2. 21
2.58
2. 03

Other
1. 68
1.64
1. 48
1. 59
1. 68
1. 23
1. 38
1. 46
1.54
1. 48
1. 53
1. 41
1. 42
1. 53
1. 58
1.61

Com- ComPublic munimercial
utilities cation
and
other 2
6. 13
7. 43
8. 74
10.20
11. 61
13. 14
15. 30
17. 00
19. 66
16. 92
16. 60
17. 01
17.53
18.38
18. 68
20. 18

5. 30
6. 02
6. 34
6. 83
8. 30
10. 10
10. 77
11. 89
13. 14
11. 71
11. 59
11. 56
12. 63
12. 34

13. 19
14. 48
14. 59
15. 14
16. 05
16. 59
18. 05
20. 07
21. 65
20. 10
19. 88
20. 16
20. 21
21.53
34. 25
35. 03

NOTE.—Annual total is the sum of unadjusted expenditures: it does not
necessarily coincide with the average of seasonally adjusted figures.
These figures do not agree with the totals included in the gross national product
estimates, principally because the latter cover agricultural investment and also
certain equipment and construction outlays charged to current expense.
Source: Department of Commerce.

9

OF

FORCE

In July, employment (seasonally adjusted) declined 60,000 following an exceptionally large increase of 650,000
in June. Despite the decline, employment was 2.9 million higher than a year earlier. Unemployment edged down
again in July.
MILLIONS OF PERSONS*

MILLIONS OF PERSONS*

PERCENT OF CIVILIAN LABOR FORCE

PERCENT OF CIVILIAN LABOR FORCE

uNE VI PLCyfl V\ El*41

J E>^S ONA LL Y

RATE

>JlJS1rED

AC

^J

~

»^»

FT]

1967

.'.1

]958

lHH
1969

l^j
;

.

i9;70

i

1
\

i 1_ r
':

1 97\

Period

1969.__
1970___
1971...
1972*..

1972:
June*
July_
Aug_
Sept.
Oct_.
Nov_
Dec__
1973:
Jan__
Feb..
Mar*
Apr__
May_
June.
July.

84, 240
85, 903
86, 929
88, 991

90, 448
91, 005
90, 758
89, 098
89, 591
89, 400
89, 437

COUNCIL OF ECOHOMJC ADVISERS

Civili an employ ment
NonagriTotal
cul-

Unemployment

Thoussands of
77, 902 74, 296 2,832
78, 627 75, 165 4,088
79, 120 75, 732 4, 993
81, 702 78, 230 4, 840
Unadj usted

82, 629
83, 443
83, 505
82, 034
82, 707
82, 703
82, 881

78,
79,
79,
78,
78,
79,
79,

653
383
475
376
986
340
719

5, 426
5, 173
4,857
4, 658
4,470
4,266
4, 116

88, 122 81, 043 78, 088 4, 675
89, 075 81, 838 78, 882 4,845
89, 686 82, 814 79, 683 4, 512
89, 823 83, 299 80, 004 4, 174
89, 891 83, 758 80, 291 3, 799
92, 729 85, 567 81, 514 4,847
93, 227 86, 367 82, 201 4,550

1

Total
labor
force
(including
Armed
Forces)
persons 1€>
84, 240
85, 903
86, 929
88, 991




Civili an empk>yinent
Civilian
labor
force

Total

Agricultural

years of age and c ver
80, 734 77, 902 3, 606
82, 715 78, 627 3,462
84, 113 79, 120 3, 387
86, 542 81, 702 3,472

Nonagricul-

Unemp] oyment Labor
Unem- rate
force
(pe rcent of participloycivilia
n
labor
ment
pation
for ce)
rate *
Percent

74,
75,
75,
78,

296
165
732
230

2,832
4, 088
4,993
4, 840

4, 802
4, 815
4, 880
4, 810
4, 839
4, 498
4, 487

i.Seasonally adjustea I

1

88, 947
88, 985
89, 337
89, 471
89, 651
89, 454
89, 707

86, 554
86, 597
86, 941
87, 066
87, 236
87, 023
87, 267

81, 752
81, 782
82, 061
82, 256
82, 397
82, 525
82, 780

3, 331
3, 443
3, 610
3, 579
3, 658
3, 556
3, 650

78, 421
78, 339
78, 451
78, 677
78, 739
78, 969
79, 130

89, 325
89, 961
90, 629
90, 700
90, 739
91, 247
91, 121

86, 921
87, 569
88, 268
88, 350
88, 405
88, 932
88, 810

82, 555
83, 127
83, 889
83, 917
84, 024
84, 674
84, 614

3, 501
3,424
3,480
3, 311
3, 275
3, 403
3,516

79, 054
79, 703
80, 409
80, 606
80, 749
81, 271
81, 098

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

10

19 7 3

1972

*16 YEARS OF AGE AND OVER.
SOURCE: DEPARTMENT OF LABOR

Total
labor
force
(including
Armed
Forces)

:j

4, 366

4,442

4, 379
4, 433
4,381
4, 258
4, 196

3. 5
4. 9
5. 9
5.6
Unadjusted

6. 2
5. 8
5. 5
5. 4
5. 1
4. 9
4. 7
5.5

5. 6

5.2
4.8

4. 3
5. 4
5. 8

61. 1
61. 3
61. 0
61.0
Seaso nally
adju sted
6. 5
5. 6
5. 6
5. 5
5. 5

5.2

5. 1

5.0

5. 1
5. 0
5. 0
5. 0

4.8
4.7

61.1
61. 0
61.2
61.2
61.2
61.0
61. 1
60. 7
61.1
61. 4
61.4
61.8
61.6
61.4

*Data beginning January 1972 not strictly comparable with prior data because
of adjustment to 1970 Census data, which added 333,000 to the civilian labor
force and 301,000 to civilian employment. A further adjustment in March 1973
added 60,000 to the labor force and to employment.

SELECTED MEASURES OF UNEMPLOYMENT AND PART-TIME EMPLOYMENT
The unemployment rate (seasonally adjusted) declined to 4.7 percent in July from 4.8 percent in June. The rate had
been at a plateau of about 5 percent during the previous 6 months/ after dropping from 1971 levels of about 6 percent.

SEASONALLY ADJUSTED

LABOR FORCE TIME LOST

UNEMPLOYMENT RATE,
ALL CIVILIAN WORKERS

/

UNEMPLOYMENT RATE,
MARRIED MEN

1967

1973
COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF LABOR

Unernplovmen t rate
(perceE t of civil!an labor
foi ce in groiip)
Period

Experi- Married Labor
force
enced
All
men
time lost l
wage
and
(wife
workers salary
workers present)
Per cent

1969
1970
1971
1972

3.5

1972: June
July
Aug
Sept
Oct
Nov_
Dec
1973: Jan
Feb
Mar
Apr
May
June
July

5. 5

1

4. 9
5. 9
5. 6
5.6

5. 6
5. 5
5. 5
5. 2
5. 1
5.0
5.1

5. 0

5.0

5. 0

4.8
4.7

3. 3
4.8

1. 5
2. 6
3. 2

5.3

2.8

5. 7

Seasonall y adjusted
5. 1
2. 9
2. 7
5. 3
2. 6
o. 3
5. 2
2. 8
5. 2
2. 8

4.9
4.8
4.6
4.7
4.6
4.7
4.6
4.3
4.4

2.5

2.4
2.4

2.4

2. 5

2.4

2. 3
2. 3
2. 1

3.9

5. 3
6. 4
6. 0

5.9

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

5.4

5. 3
5. 3

5.4

5. 2

5.3

5. 3
5. 1
5.2

Persons at work jin nonagri cultural ir
idustries
by hours worked j5er week 2
Uiider 35 he urs
Part-ti me for
Part-t] me for
econorni c reasons economi c reasons
Over 40 35-40
Total
hours
hours
Usually Usually Usually Usually
fullpart-~
fullparttime 3
time 4
time 4
time 3
Thousan ds of pers ons 16 ye ars of age and over
20, 608 34, 201 15, 210
855
955
995
18, 925 33, 537 18, 222
1, 201
35,
752
16,
298
1,
184
1,
256
19, 095
20, 320 36, 794 16, 549
1, 327
1, 081
Seasonall j adjusted
1Jnadjustec t
19, 989 37, 608 15, 169
1, 177
1,878
1, 503
1, 066
2, 140
18, 824 36, 143 14, 046
1, 034
1,091
1,385
19, 626 36, 103 13, 869
1, 190
1, 927
1, 076
1, 363
1, 107
1, 277
21, 881 37, 409 15, 176
1, 136
1, 070
980
20, 735 33, 864 20, 979
1, 086
1, 027
1 237
37,
566
21, 404
17, 379
946
1, 065
1, 025
1, 192
917
1, 073
21, 740 37, 483 17, 543
968
1, 213
19, 527 35, 819 18, 557
951
948
893
1, 130
1, 020
20, 311 35, 844 19, 305
1, 068
lt 020
1,254
967
1, 096
21, 485 37, 537 17, 378
1,258
940
962
966
987
20, 968 37, 983 18, 000
1, 149
949
1, 031
1, 042
21, 966 37, 904 17, 239
1, 216
21,467 38, 306 15, 714 5 1, 195 5 1,772
1, 083
1, 420
1, 222
1, 192
20, 424 37, 040 14, 283
1, 129
1, 886

Man-hours lost by the unemployed and persons on part-time for economic
reasons as a percent of potentially available labor force man-hours.
Differs from total nonagricultural employment (p. 10), which includes pers with jobs but not at work for such reasons as vacation, illness, bad weather,
id
industrial disputes.
3
Includes persons who worked part-time because of slack work, material
shortages or repairs, new job started, or job terminated.




4
Primarily
5

includes persons who could find only part-time work.
Average hours worked: usually full-time, 23.1; usually part-time, 19.3.
Source: Department of Labor.

11

UNEMPLOYMENT INSURANCE PROGRAMS
In July, insured unemployment under State programs averaged 318,000 lower than a year earner, The seasonally
adjusted insured unemployment rate was 2.7 percent for the fourth month in a row,
MILLIONS OF PERSONS

JAN.

FEB.

MILLIONS OF PERSONS

MAR.

APRIL

MAY

JUNE

JULY

AUG.

SEPT.

OCT.

1969
1970
1971 v
_ _ _
1972*
1972: June p *
_
July _
A u g *p_ _ _
Sept
Oct »
Nov p p
Dec
1973: Jan p"
Feb TJ
Mar
_
Apr *> p
Mav
June v
__
July *
Week ended:
1973: Juiv 14
21
28
Aug 4 pp
11 _ _ _ _
i Not charted.

12




DEC.

COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF LABOR

Period

NOV.

AJl prograrns
Insured Total
unem- benefits
ployCovered
paid
(milemploy- ment
(weekly
ment
lions
averof dolage)
lars)

Thou sands
59, 999
1, 177
59, 526
2,070
_ 59, 375
2, 313
2, 185
___
1, 951
2, 087
1, 763
1, 554
1, 511
1, 691
1, 993
2, 332
2, 250
2, 077
1, 828
1, 610
1, 522
1, 645
1, 670
1, 631
1, 627
1,636

2, 298. 6
4? 179. 1
5, 498. 2
5, 000. 0
423. 0
402.0
405. 3
313. 5
311.4
338. 7
372. 1
425. 3
432. 9
481. 6
402. 9
368. 3
334. 7
220. 1

St ate progrsims

Insured
unemployment

Initial
claims

Exhaustions

Weekly iiverage, t housands
I, 101
200
16
296
25
1,805
2, 150
295
38
265
37
1, 850
1,636
250
36
1, 823
321
35
1, 564
213
33
1, 388
29
190
214
1, 357
26
1,507
253
28
324
1, 801
29
2, 124
331
31
2; 069
247
29
1,898
213
31
1, 669
29
216
1, 465
193
31
29
1, 383
206
274
1. 505
30
1, 535
1,496
1,494
1
1,500

270
259
266
262
239

Source: Department of Labor.

Insurec1 unemploymerit as percent of covered
emplo yment
Unad- Seasonadjusted ally
justed

Benefi ts paid
Total Average
(milweekly
lions of
check
dollars) (dollars)

Per cent

2. 1
3. 4
4. 1
3.5

3. 1
3. 4
2. 9
2. 6
2.5
2.7

3. 3

3.8
3.7
3.4

2. 9
2. 5
2. 4
2.5
2.5

2. 5
2. 4
2. 5

3. 6
3. 7
3.4

3.4
3.4

3. 3
3. 0
2. 7
2. 7
2. 8
2. 7
2. 7
2. 7
2. 7

2, 127. 9
3, 848. 5
4, 957. 0
4, 550. 0
382. 1
364. 3
363. 0
280. 1
280.3
307.2
342.2
392. 7
399. 1
438. 9
374. 5
341. 4
316. 9
298. 7

46. 17
50. 34
54. 02
57.00
55. 23
55. 75
55. 53
60. 16
56.95
57.59
58. 10
57. 09
57. 13
57. 16
57. 21
57. 23
57. 26
57. 31

NONAGRICULTUR&L EMPLOYMENT
(Total nonfarm payroll employment rose by 39,000 (seasonally adjusted) to 15.5 million in July, Declines in employment in manufacturing (78,000) and in Federal government (10,000) were more than offset by small job increases
in nearly all private nonmanufacturing industries and in State and local government.
MILLIONS OF WAGE
AND SALARY WORKERS {SEASONALLY ADJUSTED)

MILLIONS OF WAGE
AND SALARY WORKERS (SEASONALLY ADJUSTED)

16

\

\

I

- ALL NONAGRICULTURAL ESTABLISHMENTS

68

12

44

NONMANUFACTURING
(PRIVATE)
I
\
l^

40 h

DURABLE
MANUFACTURING

H

12

U—-"!

-v!

36

*MXf
AMANUFACTURING

->o

,,,6ijf
_

""*'*^K

'

„...••••»•

»«""""""
-

1£

CGOVERNMENT

/
12

8

A I I I i 1 1 ! ! 1 1I

V

i ;i: i! i i i 1 i

i . i i t 1 i i i ii

1971

1972

1970

1 t I I ! ! 1 1 ! I lf\l

1970

1973

1973
COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF LABOR

l

[Thousands of wage and salary workers; seasonally adjusted]
!

|

Period

Total

1967
1968
1969
1970
1971
1972
1972: June,
Julv_
Auo;__

65, 857
67, 915
70, 284
70, 593
70, 645
72, 764
72, 705
72, 694
73, 016
73, 268
73, 584
73, 835
74, 002
74, 252
74, 715
74, 914
75, 105
75, 321
75, 432
75, 471

Sr-pt _

Occ__
Xov_
Dec-

1973: Jan._
Feb__
Mar_
Apr—
MayJune3'
July *

NonTotal Durable
Total
goods durable
goods
19, 447
19, 781
20, 167
19, 349
18, 529
18, 933
18, 931
18, 893
18, 975
19, 069
19, 210
19, 312
19, 402
19, 463
19, 586
19, 643
19, 727
19, 782
19, 868
19, 790

11, 439
11, 626
11, 895
11, 195
10, 565
10, 884
10, 857
10, 867
10, 933
11, 003
11, 112
11, 194
11,270
11, 326
11, 421
11, 463
11, 534
11,602
11, 657
11, 617

8,008
8, 155
8, 272
8, 154
7, 964
8, 049
8, 074
8, 026
8, 042
8, 066
8, 098
8, 118
8; 132
8, 137
8, 165
8, 180
8, 193
8, 180
8,211
8, 173

Con- Trans- Whole- Finance;,
insursale
tract portation
ance? Services Federal State
and
and
Mining conand
and
local
struc- public retail
real
tion utilities trade estate

35, 012
36, 288
37, 915
38, 709
39, 261
40, 541
40, 547
40, 530
40, 718
40, 814
40, 968
41, 070
41, 098
41, 311
41, 596
41, 697
41, 764
41, 897
41, 948
42, 052

Includes all full- and part-time wage and salary workers in nonagriculturai
Establishments who worked during or received pay for any part of the pay period
Inch includes the 12th of the month. Excludes proprietors, self-employed perms, domestic servants, and personnel of the Armed Forces. Total derived from
ds table not comparable with estimates of nonagricultural employment of the
civilian labor force, shown on p. 10, which include proprietors, self-employed
persons, and domestic servants; which count persons as employed when they




Government

K onmanufacturin 5 (private)

Manufa<sturing (private)

613
606
619
623
602
607
601
601
603
606
608
608
607
610
612
610
608
608
613
615

3,208
3, 285
3, 435
3, 381
3,411
3, 521
3, 540
3, 499
3, 544
3, 551
3, 561
3, 524
3, 459
3, 498
3, 594
3, 604
3, 571
3, 620
3, 650
3, 674

4,261
4, 310
4, 429
4,493
4, 442
4, 495
4, 486
4, 477
4, 487
4, 507
4, 540
4, 549
4, 558
4, 574
4, 580
4, 580
4, 591
4, 593
4,589
4, 601

13, 606
14, 084
14, 639
14, 914
15, 142
15, 683
15, 678
15, 685
15, 762
15, 794
15, 839
15, 911
15, 946
16, 013
16, 114
16, 163
16, 217
16, 256
16, 244
16, 270

3, 225
3, 382
3, 564
3, 688
3, 796
3, 927
3,927
3, 927
3, 940
3, 953
3, 969
3, 981
3, 991
3, 995
4, 014
4, 024
4, 031
4, 044
4, 049
4, 049

10, 099
10, 623
11, 229
11, 612
11, 869
12, 309
12, 315
12, 341
12, 382
12, 403
12, 451
12, 497
12, 537
12, 621
12, 682
12, 716
12, 746
12, 776
12, 803
12, 843

2, 719
2, 737
2, 758
2, 705
2, 664
2, 650
2, 639
2,613
2, 624
2, 633
2, 639
2, 644
2, 650
2, 634
2, 628
2, 631
2, 628
2, 641
2, 613
2, 603

8, 679
9, 109
9, 444
9, 830
10, 191
10, 640
10, 588
10, 658
10, 699
10, 752
10, 767
10, 809
10, 852
10, 844
10, 905
10, 943
10, 986
11,001
11, 003
11, 026

are not at work because of industrial disputes; and which are based on a sample
of the working-age population, whereas the estimates in this table are based on
reports from employing establishments.
Source: Department of Labor.

13

WEEKLY HOURS OF WORK - SELECTED INDUSTRIES
The average workweek of production workers in the private nonfarm sector was little changed in July at 37,3 hours
(seasonally adjusted). The workweek in manufacturing rose 0.3 hour, following 2 months of declines.
HOURS PER WEEK ^SEASONALLY ADJUSTED)
46

HOURS PER WEEK (SEASONALLY ADJUSTED)
46

MANUFACTIJRING

TOTAL NONAGR1CULTURAL PRIVATE
44

AA

42

A')

40

tf\

/~^
k^—~>

«SQ

38
36
34

34
1970

1971

1972

At 1 I I 1 ! 1 I.I ! !

I I ! I 1 S 1 I 1 ? 11 ! I 1 1 ! 1 ! 1 1 1

1970

1973

42

1 1 ! 1 1 I 1 f 1 f IK

1971

1972

1973

1971

1972

1973

"

42

RETAIL TRADE

CONTRACT CONSTRUCTION
40

40

38

38

36
34
32
30

30

I i I t j ! i 1 !

1970

1971

1972

1970

1973

COUNCIL OF ECONOMIC ADYISiSlS

SOURCE* DEPARTMENT OF LABOR

1

[Average hours per week ]
Period

Total
n onagricultural
private 2

Manufacturing

38. 7
38. 8
38.6
38. 0
37.8
37. 7
37. 1
37. 0
37.2
37.4
37. 6
37.6
37.4
37,3
37. 1
37.2
36. 6
36. 8
36. 9
36. 9
37.0
37.5
37.7

40. 7
41. 2
41. 3
40. 6
40.7
40. 6
39. 8
39. 9
40.6
40. 9
40. 4
40.6
41.0
40.8
41. 0
41.2
40. 0
40. 6
40. 8
40. 7
40. 7
40. 9
40. 7

Contract
construction

Retail
trade 3

Total
nonagricultural
private 2

Dec

1973:

Jan
Feb
Mar
Apr

May..p
June ___ _ _
Julv *
1
Data relate to production
2
Also includes other private
s

workers7 or nonsupervisory employees.
industr3 groups shown on p. 13.
Includes eating and drinking places.

14




Contract
construction

Retail
trade 3

Seasonally7 adjusted

Unad. usted

1964
1965
1966
1967
1968
1969
1970
1971
1972
1972: June
July
Aug
Sept
Oct
Nov

Manufacturing

37. 2
37. 4
37. 6
37.7
37.4
37. 9
37.4
37. 3
37.0
37. 6
37. 9
38.2
38. 2
38.2
36.0
35.2
34. 8
34.9
36.6
36.8
37.5
38.1
38. 3

37. 0
36. 6
35. 9
35. 3
34.7
34. 2
33. 8
33. 7
33.6
34. 1
34.7
34. 7
33.6
33. 3
33.2
33.9
32. 9
32.9
32. 9
33.0
33.0
33. 8
34. 5

_

37. 1
37 2
37. 1
37.3
37,3
37.2
37.0
38. 9
37. 2
37.1
37. 2
37.2
37. 2
37. 3

Source: Department of Labor.

40. 6
40.6
40.6
40. 8
AO. 7
40.8
40.7
40. 3
41.0
40. 9
40. 9
40. 7
40.6
40. 9

36. 9
37. 0
37. 0
36. 9
<R7 4
/
of.

86.9
35.8
36. 1
36.2
37.0
37. 0
37.5
37.4
37.4

33. 8
33. 6
33. 6
33. 6
33.5
33.5
33. 6
S3. 4
S3. 5
33. 4
33. 4
33. 4
33. 5
33. 4

AVERAGE HOURLY AND WEEKLY EARNINGS - SELECTED INDUSTRIES
Average hourly earnings of private nonfarm production workers increased 2 cents in July to $3.89 (not seasonally
adjusted), a level 6.9 percent above a year earlier. Average weekly earnings rose by $1.52 to $146.65 and were
7.2 percent higher than a year earlier.
DOLLARS

DOLLARS

AVERAGE WEEKLY EARNINGS

AVERAGE HOURLY EARNINGS

240

6.00
CONTRACT
CONSTRUCTION

200

5.00

4.00

160

MANUFACTURING

1
TOTAL NONAGRICULTURAL
PRIVATE
3.00

120

-TOTAL NONAGRICULTURALPRIVATE

T

RETAIL TRADE

200

80
RETAIL TRADE

1970

1973

1972

1971

1970

1971

i j ; , , I , , , ,,
1972

SOURCE: DEPARTMENT OF 1ABOR

1973

COUNCIL OF ECONOMIC ADVISERS

[Fo r productio n workers or nonsupe rvisory em Dloyees]

Average h ourly earni ns;s— current dollars Average vweekly earn ings— curr snt dollars
Period

1964
1965
„_
1966
1967
1968
1969
1970
1971
1972
1972: June
July
Aug
Sept _ _
Oct

Nov _
Dec
1973: Jan
Feb
Mar

Apr
May__ __
June *
July »
1
2 Also includes other
3 Includes eating and

Total
nonagriculturall
private

Manufactur-

$2. 36
2. 45
2. 56
2. 68
2. 85
3. 04

$2. 53
2. 61
2. 72
2. 83
3. 01
3. 19
3. 36
3. 56
3. 81
3.79
3.78
3. 80
3. 86
3. 86
3. 89
3. 95
3. 98
3. 97
3. 98
4. 01
4. 02
4. 04
4 05

a 22

3. 43
3.65
3. 63
3. 64
3. 66
3. 72
3.74
3. 74
3.74
3.77
3. 78
3. 80
3.83
3.85
3.87
3.89

ing

Contract
construction
$3. 55
3. 70
3.89
4. 11
4. 41
4.79
5. 24
5. 69
6.06
5.94
5.96
6.03
6. 15
6.22
6. 23
6.32
6.42
6. 31
6.28
6. 31
6. 34
6. 35
6. 38

Retail
trade 2
$1. 75
1. 82
1. 91
2. 01
2. 16
2. 30
2. 44
2. 57
2.70
2. 69
2. 70
2. 70
2.73
2. 74
2. 75
2.75
2. 78
2. 80
2. 81
2. 83
2.84
2. 85
2.86

private industry groups shown on p. 13.
drinking places.
Adjusted to exclude the effects of overtime and interindustry shifts.
20-355°—73




3

Total
nonagricultural1
private

Manufactur-

$91. 33
95. 06
98. 82
101. 84
107. 73
114. 61
119. 46
126. 91
135. 78
135. 76
136. 86
137. 62
139. 13
139. 50
138. 75
139. 13
137. 98
139. 10
140. 22
141. 33
142. 45
145. 13
146. 65

$102. 97
107. 53
112. 34
114. 90
122. 51
129. 51
133. 73
142. 04
154. 69
155. 01
152. 71
154. 28
158. 26
157. 49
159. 49
162. 74
159. 20
161. 18
162. 38
163. 21
163. 61
165. 24
164. 84

ing

Contract
construction

Retail
trade 2

$132. 06
138. 38
146. 26
154. 95
164.93
181. 54
195. 98
212. 24
224. 22
223. 34
225. 88
230. 35
234. 93
237. 60
224. 28
222. 46
223. 42
220. 22
229. 85
232. 21
237. 75
241. 94
244. 35

$64. 75
66.61
68. 57
70. 95
74. 95
78.66
82. 47
86. 61
90.72
91.73
93.69
93. 69
91.73
91. 24
91. 30
93.23
91.46
92. 12
92. 45
93. 39
93.72
96. 33
98.67

Manufa tcturing
indusstries
Adjusted
hourly
earnings,
-j OAT
lyo/
—
3

100

Average
weekly
earnings,
1967
dollars 4
$110. 84
113. 79
115. 58
114. 90
117. 57
117. 95
114. 99
117. 10
123. 46

90. 3
92. 6
95. 7
100. 0
106. 2
112. 6
119. 6
127,5
135.4
134. 7
135, 0
135. 5
136. 7
137.0
137,7
139.2
140. 1
140. 1
140.7
141.4
142.0
142.3
142.7
«Earnings in current dollars divided by the consumer price index.
Source: Department of Labor.

12401
121. 68
122. 74
125. 40
124. 40
125. 68
127. 84
124. 67
125. 33
125. 10
124. 87
124. 42
124. 80
124 22

15

PRODUCTION AND BUSINESS ACTIVITY

INDUSTRIAL PRODUCTION

Industrial production (seasonally adjusted) rose 0.7 percent in July to a level 9.7 percent above a year earlier. The
July increase represented an acceleration from the rates in the second quarter and was spread throughout the major
industry and market groups.
Index, 1967=100 (SEASONALLY ADJUSTED)
140

I I I I I ! I 1 1 I I

1970

Index, 1967=100 (SEASONALLY ADJUSTED)
160

I I I I I 1 I I I I I

I II |I I I 1 II I

1971

I I ! I I1

1972

1973

1970

1973

SOURCEt BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Total
industrial
production

Period

1964
1965
1966
1967
1968_
1969
1970
1971
1972
1972: June
July
Aug
Sept
Oct
Nov
Dec
1973: Jan_
Feb
Mar
Apr
May
June1*
Julv*

._

81.7
89. 2
97.9
100. 0
105. 7
110. 7
106. 6
106. 8
115. 2
114.4
115. 1
116. 3
117. 6
119.2
120.2
121. 1
122. 2
123. 4
123. 7
124 1
124. 8
125. 4
126. 3

[1967=100, seasonally adjusted]
Industry

Total

81.2
89. 1
98. 3
100. 0
105. 7
110.5
105.2
105. 2
114. 0
113. 1
114. 3
115. 4
117. 0
118. 5
119.5
120. 4
121. 4
122. 7
123. 4
123.8
124. 9
125.2
126.6




NonDurable durable
79.0
88.5
99.0
100. 0
105. 5
110. 0
101.4
99.4
108.4
107. 5
108.8
109. 7
111. 6
113. 8
115. 3
116.3
117. 5
118. 7
119. 9
120. 6
121.7
122. 5
123. 9

844
90.0
97.3
100. 0
106. 0
111. 1
110.6
113. 5
122. 1
121. 4
122.5
123.6
124 8
125.2
125.6
126. 2
127. 0
128. 4
128. 6
128. 4
129. 9
129. 3
130.4

Market
Final produ Bts

Mimufactun ing

Note.—Series revised beginning March 1972.

16

COUNCIL OF ECONOMIC ADVISf RS

Mining Utilities

91. 1
93. 9
98. 4
100. 0
103. 9
107. 2
109. 7
107.0
108.8
108.6
108. 6
108. 8
110. 8
110.2
109. 7
108. 2
108. 5
110. 2
109. 5
109. 0
108.8
109. 3
110.6

81.9
86. 9
93.6
100. 0
109.4
119. 5
128.3
133. 9
143. 4
141.5
143.3
144 9
146.4
147. 1
148. 2
148. 5
151. 0
150. 5
149. 6
148. 7
149. 5
148. 8
149. 0

Total

Consumer
goods

79.6
8& 8
96. 1
100. 0
105. 8
109.0
104 5
104 7
111.9
111.0
111. 6
112.6
113.6
115.3
116.3
116. 8
118. 6
119. 3
119.6
120. 0
120. 8
121. 2
122. 0

86.8
93. 0
98. 6
100.0
106. 6
111. 1
110. 3
115. 7
123. 6
122. 7
123. 3
124 3
125.2
127.0
127. 4
127. 7
129.8
130. 2
130. 8
130. 9
131. 4
131. 5
132. 2

T
4.
Intermediate MateEquip- products
rials
ment

70. 1
78.7
93.0
100.0
1047
106. 1
96.3
89.4
95. 5
94 7
95.3
96. 3
97. 7
98. 9
100.7
101. 5
102. 9
104 1
104 1
1047
105. 8
106. 8
107. 9

87. 3
93.0
99.2
100. 0
105. 7
112. 0
111.7
112. 5
121. 1
119. 4
119. 8
122. 3
122. 8
1247
127.6
127. 7
128. 4
129.5
129.4
129. 3
130. 6
131. 0
131. 6

Source: Board of Governors of the Federal Reserve System.

82. 6
91. 0
99.8
100.0
105.7
112. 4
107. 7
107.4
117. 4
117. 1
117.8
118.8
120.9
122.3
122. 8
124 4
124 5
126.7
127. 0
127. 7
127. 7
129. 2
130. 2

PRODUCTION OF SELECTED MANUFACTURES
Production increases (seasonally adjusted) were widespread in July among both durable and nondurable manufactures.
Index, 1967=100 (SEASONALLY ADJUSTED)
140

Index, 1967=100 (SEASONALLY ADJUSTED)
160

1970
SOURCE:

1973

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

COUNCIL OF ECONOMIC ADVISERS

[1967 = 100, seasonally adjusted]
Nc riclurable maiiufactu res

DuraL>le manufgictures
Period

Primary
metals

FabriTranspor- Lumber Textiles, Paper
cated
Machin- tation
and
apparel,
and
ery
prodand
equipprintmetal
ing
products
ment
leather
ucts

Chemicals, Foods
petroleum, and tobacco
rubber

95.7
104. 0
108, 8
100. 0
103. 2
114. 1
106. 9
100. 9
113. 1

83. 3
92. 6
100. 5
100. 0
106. 3
113. 6
109. 4
107. 4
114. 8

74. 3
84. 1
98. 6
100. 0
101. 9
106. 8
100. 3
96.2
107. 5

79. 6
91. 3
101. 2
100. 0
109. 7
107. 6
90.4
92. 9
99. 0

91. 0
94.7
98. 4
100. 0
104. 8
108. 6
106. 3
113. 9
122. 4

91. 9
97. 8
101. 7
100. 0
104. 9
105. 9
100. 2
100. 7
108. 1

845
90. 5
98. 9
100. 0
104. 2
109. 1
107. 8
107. 8
116. 1

75. 9
83.8
94. 1
100. 0
109. 6
118. 4
118. 2
124. 7
137. 8

90. 6
92. 6
97. 0
100. 0
103. 6
107. 5
110.8
113. 7
117. 6

1972: June
_ __
July
Aug
Sept
Oct. _ _ _ _ _ _ _ _ _
Nov
Dec

111.
115.
114.
119.
122.
122.
125.

114. 5
114. 3
116.6
118. 0
120. 4
122. 2
122. 3

106. 6
108. 4
109. 7
111. 8
114. 0
115. 7
116.8

97.4
97.7
98. 1
99. 5
102.7
105. 0
106. 6

121. 2
122. 5
121. 8
123. 6
127.3
126. 8
122. 7

107. 5
109. 0
109. 7
111. 2
112. 1
113. 0
113. 2

114. 6
117. 0
117. 6
117. 7
119. 9
120.0
120. 3

136.9
138. 5
140. 0
142. 2
141. 6
142. 0
143.8

117. 9
117. 0
118. 3
118. 6
118. 5
119. 0
118.5

1973: Jan_
Feb
Mar
Apr
Mav
J u n e pp _ _
July

123. 1
124. 7
123. 5
125.8
124. 2
125. 0
126. 0

125.
126.
128.
128.
130.
133.
134.

118.4
119. 1
121. 4
122. 6
124. 6
126. 0
126. 8

107. 6
110. 0
110. 3
110. 0
111. 0
110. 7
111. 9

125. 8
128. 5
129. 5
129. 1
127. 4
125.9

113.
114.
114.
114.
114.
114.
116.

120.
121.
122.
120.
122.
120.
122.

145.
146.
146.
147.
149.
149.
150.

119.
122.
121.
120.
123.
121.
122.

1964
1965
1966
1967
1968
1969
1970
1971
1972 _

_

_

_ __

_ _ _ _ _ _ ___ _ _

_
_

_
__ _

__ _

_

_ _

Note,—Series revised beginning March 1972.




3
1
3
7
1
9
4

7
2
4
9
1
4
8

4
4
6
0
4
7
2

0
5
4
8
0
1
1

5
3
3
9
6
8
7

6
0
5
7
2
8
0

Source: Board of Governors ol the Federal Reserve System.

II

WEEKLY INDICATORS OF PRODUCTION
Distribution of electric power (not seasonally adjusted) rose in July. Cars and trucks assembled declined, reflecting
the beginning of the model changeover period. Other weekly indicators of production also declined.
MILLIONS OF SHORT TONS

MILLIONS OF TONS

10 -j

A! i i I i t I ! I i i i 1 i i t I t i I 1 ' ' i ' 1 I 1 ' »/ 1 ' 1 I t ' ' 1 I ' I I ' ' ' 1 ' ' 1 I/J

J

F

M

A

M

J

J

A

S

O

N

D

BILLIONS OF KILOWATT HOURS
50

6 ly I 1 I M 1 I I I I T 1 1 1 I 1 t 1 I I I I Mill I I I I I i I t I I ! 8 t ! 1 I f ill I t ! I

J

F

M

A

M

J

J

A

S

O

N

D

THOUSANDS

20

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

Period
Weekly average:
1986
1967
1968
1969—.
1970 _
1971
1972 v
1972: JuneJuly
Aug_
Sept _
_ _
Oct
Nov_
Dec___
1973: Jan
Feb
Mar_ _
Apr
Mav__
June _
July"
Week ended:
July 7_
14. ___
21__ _ _
28
Aug 4
_
HP
18*
1
2 Includes

data for Alaska.
Not charted.

18



Steel p reduced
Index
Thousands
(1967=
of net
tons
100)

COUNCIL OF ECONOMIC ADVISERS

Electric
Bituminou
Cai s and triicks
Freight Paperboarc
power
coal mined
loaded
produced assemb led (thoijsands)
distributed (thousands (thousands
(thousands
of short
(millions of
Cars Trucks
Total
of cars)
of tons)
tons) l
kilowatt-hours

2, 572
2, 440
2, 515
2, 709
2, 522
2, 310
2, 549
2, 559
2, 340
2, 447
2, 550
2, 631
2, 657
2, 687
2, 793
2, 906
2, 954
2,981
2,974
2, 911
2, 780

105. 4
100. 0
103. 1
111. 0
103. 4
94. 7
104.5
104.9
95. 9
100. 3
104. 5
107. 9
108.9
110. 2
114. 5
119. 1
121. 1
122. 2
121.9
119.3
113. 9

21, 971
23, 169
25, 244
27, 588
29, 317
30, 923
33, 540
34, 174
35, 905
36, 374
34, 360
32, 547
33, 674
35, 264
35, 861
35, 800
33, 643
33, 164
33,543
38, 061
39? 417

10, 267
10, 627
10, 485
10, 779
11, 595
10, 619
11, 346
10, 878
9,463
11, 582
11, 404
11, 498
11,211
9, 964
10, 598
11, 059
11, 116
10, 945
11,493
10, 498
9,621

570
540
543
543
522
486
501
515
462
521
524
551
524
471
491
509
515
518
543
545
504

446
439
479
507
489
501
548
558
517
566
529
576
564
498
512
583
593
584
589
583
518

199. 3
172. 9
207.6
195. 8
158. 9
204. 8
217.2
230. 7
120. 5
152. 8
225. 5
257. 6
257. 1
202. 5
261. 3
277. 6
276. 1
262. 0
269. 9
280. 1
216. 6

165.4
142. 4
170.1
158. 1
125. 9
165. 0
169. 6
180. 9
93. 1
116. 9
180.9
203. 1
200. 9
157. 7
201. 5
213. 3
212. 1
200. 8
207. 3
216. 7
164. 4

33. 9
30. 5
37.5
37. 8
33. 0
39. 8
47.5
49.8
27. 4
35. 9
44. 6
54. 5
56.3
44. 7
59.8
64. 3
64. 1
61.2
62. 6
63. 3
52.2

2,790
2, 766
2,826
2,780
2,810
2, 771
2
2, 781

114.4
113.4
115.8
113.9
115.2
113. 6
114.0

38, 262
40, 284
39, 068
40, 053
39, 040
40, 276

4, 535
10, 455
11,705
11, 790
11, 760
12, 300

428
523
532
535
540
533

465
479
538
591
582
582

195. 6
228. 6
233. 1
209. 3
162. 1
87. 4
2
149. 0

149. 9
173. 6
177. 5
156. 7
113. 2
57. 1
103. 3

45. 7
55. 1
55. 6
52. 6
48. 9
30. 3
45. 7

Sources: American Iron and Steel Institute, Edison Electric Institute, Department of the Interior, Association of American Railroads, American Paper Institute, and Ward's Automotive Reports.

NEW CONSTRUCTION
According to preliminary estimates, expenditures for new construction (seasonally adjusted) rose slightly in June.
Both private and public construction increased.
BILLIONS OF DOLLARS
160

BILLIONS OF DOLLARS

20 I'
1967

1973,

SOURCE: DEPARTMENT OF COMMERCE

Total new
construction
expenditures

Period

1967
1968
1969
1970
1971.
1972 *>__

77. 5
86. 6
93. 4
94. 2
109. 2
123. 8

COUNCIL OF ECONOMIC ADVISERS

Private

Total

52. 0
59.0
65. 4
66. 1
79.4
93.6

Resic ential
CommerNew
Other
cial and
l
housing
Total
industrial
units
Bi lions of doll ars
25. 6
19. 0
2e>. 4
14.7
24. 0
30. 6
13. 8
33.2
16. 0
25.9
16. 2
16. 3
31.9
24. 3
17.9
19. 1
17.0
43. 3
35. 1
54.2
18.1
44.7
21.3

Federal, '
Total value
State,
index,
and
local
(1967 =
100)
25. 5
27. 6
28. 0
28. 1
29. 9
30.2

Seasonal! y adjusted at inual rates
1972: Apr
May
June
July
Aug _ _
Sept
Oct
Nov
Dec
1973: Jan
Feb
Mar
Apr__
Mav"_
June p

_

120. 8
122. 5
121. 6
121. 6
123. 0
125. 1
128. 5
126. 8
131. 6
134. 1
134.3
136. 6
135. 3
136. 7
137.6

91. 7
92. 7
92.6
92. 4
93. 9
94. 5
96. 2
97. 5
98.5
100. 4
102.0
103. 0
102.7
104. 4
105. 1

52.9
52. 7
53.3
53.8
54. 5
55. 5
56. 4
57. 2
57. 5
57. 8
59.4
59.8
59.3
59.6
59. 9 1

43. 6
43.4
43.8
44. 1
44. 7
45. 9
46. 9
47. 8
48. 0
48. 1
49. 4
49. 6
48. 9
49. 2
49. 5

Includes noiibousekeeping residential construction and additions and alterations,
not shown separately.
2
F. W. Dodge series. Relates to 50 States beginning 1969 for value index and
Beginning 1971 for floor space.




18.0
18. 8
18. 2
17. 8
18. 1
18.0
18. 1
18.2
18. 6
20. 3
20. 1
20. 6
20. 8
21. 5
21.6

20.9
21. 2
21. 1
20. 8
21. 3
21. 0
21. 8
22. 1
22. 3
22. 3
22. 5
22. 6
22. 7
23. 3
23. 6

29. 0
29.8
29. 0
29. 2
29. 2
30. 6
32. 3
29. 3
33. 1
33.7
32.3
33.6
32. 6
32.3
32. 4

Commercial and
industrial
floor space
(millions of
square feet)

100.0
113. 2
123.7
123. 1
145. 4
165. 3

694
779
883
743
727
858
Seasonally
Seasonally adjusted
adjusted
annual
rates
167
165
154
155
180
187
171
177
163
181
191
193
177
173
183

786
983
846
813
908
896
895
992
946
1,031
1,037
1,012
1,006
915
1, 014

Sources: Department of Commerce and McGraw-Hill Information Systems
Company, F. W. Dodge Division.

19

NEW HOUSING STARTS AND APPLICATIONS FOR FINANCING
Private housing starts (seasonally adjusted) rose 4 percent in July after a sharp decline in June. Starts for the latest
3 months were at an annual rate of 2.23 million units, down slightly from the 2.28 million rate in the preceding 3 months.
Permits for future housing declined more, both in July and in the latest 3 months.
•MILLIONS OF UNITS
3.0

MILLIONS OF UNITS
3.0

1.0

1973

1967

SOURCES: DEPARTMENT OF COMMERCE, f

COUNCIL OF ECONOMIC ADVISERS

'.PTME.'-JT OF HOUSING AND URBAN DEVELOPMENT, AND VETERANS ADMINISTRATION

[Thousands of units]
Housing star ts
Total
Total
private
private
and
public (includ(including
ing
farm)
farm)

Period

1967
1963
1969
1970
1971_
1972*>__

1, 321. 9
1, 545. 4
1? 499. 5
_ 1, 469. 0
2, 084. 5
2, 378. 5

1972: June_.
July
Aug
Sept.
Oct
Nov
_
Dec
__. __ __
1973: Jan
_
Feb__
Mar..
Apr
May
June**p
Julv _ _ _ _
i

226.2
207.5
231. 0
204.4
218.2
187. 1
152.7
147.3
139.5
201. 1
205.4
234.2
200.4
201. 8

Private
Total (including5 farm)
Total

1, 291. 6 1, 291. 6
1, 507. 6 1, 507. 6
1, 466. 8 1, 466. 8
1, 433. 6 1, 433. 6
2, 052. 2 2, 052. 2
2, 356. 6 2, 356. 6

223. 1
206. 5
228. 6
203. 0
216. 5
185. 7
150.5
146.6
138. 0
200.0
205. 0
234.0
199. 6
201. 2

2,315
2,244
2,424
2,426
2,446
2,395
2,369
2,497
2, 456
2,260
2, 123
2,413
2,093
2, 176




Cover nment
home p rograms
(non "arm)

Two or
more
FHAi
VA
units
141. 9
52. 5
843.9 447. 7
899.4 608. 2
147. 7
56. 1
810. 6 656. 2 153. 6
51. 2
812. 9 620. 7 233. 5
61. 0
1, 151. 0 901. 2 301. 2
94. 0
1, 309. 2 1, 047. 5 198. 4 104. 0
Seasona lly ad jus ted annu al
1,032
1,283
182
99
1,319
925
107
176
1,373
1,051
179
103
1,382
1,045
175
106
1,315
1, 131
149
98
1,324
1,071
92
125
1,207
1, 162
106
86
1,450
1,047
87
96
1,084
111
1, 372
105
92
1,245
1,015
101
921
74
1, 202
100
1,271
1, 142
81
111
1, 117
80
88
976
80
927
87
1,249
One
unit

| Units are for 1- to 4-family housing.
2
Authorized by issuance of local building permit: in 14,000 permit-issuing
places beginning 1973; 13,000 for 1967-72; 12,000 for 1963-66; and 10,000 prior to 1963.

20

Propos ed home
constniction 3
New
private
housing
units
authorized 2

1, 141. 0
1, 353. 4
1, 323. 7
1, 351. 5
1, 924. 6
2, 130. 4
rates
2, 121
2, 108
2,237
2, 265
2, 216
25 139
2, 377
2, 254
2,221
2, 102
1,882
1, 838
2,030
1,816

Applications for Requests
for VA
FHA
appraiscommitals
ments 1

167. 2
168. 9
187. 6
315. 0
366. 8
225. 2

124.3
131. 7
138.2
143. 7
217. 9
209. 4

221
224
207
166
147
162
131
124
100
93
68
89
103
*93

219
200
202
192
189
207
194
222
217
201
169
161
166
135

§ Units represented by mortgage applications or appraisal requests for new
home construction.
* Not charted.
Sources: Department of Commerce, Department of Housing and Urban
Development, and Veterans Administration.

BUSINESS SALES AND INVENTORIES—TOTAL AND TRADE
Business firms added $2.6 billion (seasonally adjusted) to their inventories in June following a rise of $2.1 billion in
May and $1.3 billion in April. Sales were about unchanged in June because of the decrease at retail. Advance reports
for July indicate retail sales rose sharply.
BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)

BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)

f

RETAIL TRADE (ENLARGED SCALE)
25 -DURABLE GOODS STORES

200

20

INVENTORIES

15

SALES

10

NONDURABLE GOODS STORES
INVENTORIES
30

40

25

*r
SALES
20

20
1970

1973

1971

1970

1971

1972

SOURCi: DEPARTMENT Of COMMERCE

COUNCIL OF ECONOMIC ADVISERS

Total b usiness l
Period

1965
1966
1967
1968
1969
1970
1971
1972
1972: May
June
July
Aug
Sept
Get
Nov
Dec
1973: Jan
Feb

Mar
Apr_ __ _„
May.
Junep
July*___

Sales

-..

2

80, 276
87, 178
89, 698
97, 100
103, 104
104, 708
112, 267
124, 680
122, 673
122, 347
122, 783
126, 792
127, 656
130, 336
131, 918
133, 483
136, 863
138, 910
141, 010
141, 274
142, 694
142, 517

Whol<ssale

Inventories 3

Sales

120, 900
136, 729
145, 164
155, 376
166, 813
174, 875
183, 622
194, 151
186, 816
187, 194
187, 681
189, 093
190, 486
191, 583
192, 921
194, 151
196, 295
198, 172
199, 525
200, 787
202, 896
205, 492

15, 595
16, 979
17, 099
18,329
19, 726
20, 554
22, 280
24, 850
24, 260
24, 230
24, 394
25, 137
25, 407
25, 779
26, 212
26, 962
27, 755
28, 423
29, 312
29, 621
29, 675
29, 683

1 The term "business" also Includes manufacturing (see page 22).
average for year and total for month.
Book value, end of period, seasonally adjusted.

2
Monthly
3




1973

2

Inventories 3
Millions of
18, 274
20, 691
21, 557
22, 528
24, 363
26, 604
28, 916
31, 732
29, 729
29, 641
30, 056
30, 164
30, 657
31, 032
31, 289
31, 732
32, 582
33, 051
33, 245
33, 574
33, 986
34, 388

Sales 2

R€jtail

Nondurable
goods
stores
dollars, seasonally adjusted
23, 677
7,849 15, 828
8, 192 17, 138
25, 330
26, 151
8,348 17, 803
28, 490
9,268 19, 222
29, 824
9,626 20, 197
31, 294
9, 524 21, 770
34, 071 10, 985 23, 086
37, 365 12, 472 24, 893
37, 141 12, 280 24, 861
36, 822 12, 253 24, 569
37, 342 12, 468 24, 874
37, 969 12, 842 25, 127
37, 746 12, 614 25, 132
39, 106 13, 168 25, 938
38, 713 13, 173 25, 540
39, 417 13, 640 25, 777
40, 707 14, 234 26, 473
41, 242 14, 405 26, 837
41, 979 14, 612 27, 367
41, 185 14, 339 26, 846
41, 735 14, 290 27, 436
41, 218 13, 696 27, 522
42, 618 14, 341 28, 277

Total

Durable
goods
stores

[nventories
Total

Durable
goods
stores

34, 405
38, 073
38, 952
41, 973
45, 376
46, 626
52, 261
54, 700
53, 402
53, 293
52, 940
53, 107
53, 661
53, 934
54, 658
54, 700
55, 526
56, 039
56, 106
56, 636
57, 285
58, 079

15, 253
17, 258
17, 277
19, 167
20, 647
20,345
23, 808
24, 442
23, 915
23, 665
23, 194
23, 037
23, 608
23, 675
24, 235
24, 442
24, 472
24, 638
24, 538
24, 624
25, 094
25, 454

3

Nondurable
goods
stores

19, 152
20, 815
21, 675
22, 806
24, 729
26, 281
28, 453
30, 258
29, 487
29, 628
29, 746
30, 070
30, 053
30, 259
30, 423
30, 258
31, 054
31, 401
31, 568
32, 012
32, 191
32, 625

Source: Department of Commerce.

21

MANUFACTURERS' SHIPMENTS, INVENTORIES, AND NEW ORDERS
Manufacturers* shipments (seasonally adjusted) rose % percent In June while inventories were up $1.4 billion. New
orders rose 1 percent. Advance reports on durable goods for July indicate a sharp rise in shipments and a small
decline in orders.
BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)

BILLIONS OF DOLLARS {SEASONALLY ADJUSTED)

MANUFACTURERS1 INVENTORIES

MANUFACTURERS' SHIPMENTS

NONDURABLE GOODS

1 , . , , , I , , , , , I , , , . , I . . . ... 1 i • i

MANUFACTURERS'

NEW ORDERS

NONDURABLE GOODS

1970

SOURCE: DEPARTMENT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS

Manufac jturers' srlipments l Manufac turers7 imrentories 2
Period
Total

1966
44, 869
1967
46, 449
1968
50, 282
1969
53, 555
1970
52, 860
1971
55, 917
1972
62, 466
1972: May ... 61, 272
June_ _ _ 61, 295
July
61, 047
Aug
63, 686
Sept_ _ _ 64, 503
Oct
65, 451
Nov
66, 993
Dec
67, 104
1973: Jan
68, 401
Feb
69, 245
Mar
69, 719
Apr
70, 468
May
71, 284
71, 616
June *
July p _ _

NonDurable durable
goods
goods

24, 633
25, 212
27, 694
29, 459
28, 231
29, 948
33, 892
33, 241
32, 919
32, 803
34, 687
35, 249
36, 302
36, 870
36, 614
37, 773
38, 122
38, 064
38, 651
39, 284
39, 257
41, 410

20, 236
21, 236
22, 588
24, 096
24, 629
25, 969
28, 573
28, 031
28, 376
28, 244
28, 999
29, 254
29, 149
30, 123
30, 490
30, 628
31, 123
31, 655
31, 817
32, 000
32, 359

1
Montiily average for year and total for month.
2
Book value, end of period, seasonally adjusted.
3

Dura!:>le goods
NonCapital durable
Total
Total
goods
Total industries, goods
i
nondefense
Millions of dollars , seasonally ad juste d

NonDurable durable
goods
goods

77, 965
84, 655
90, 875
97, 074
101, 645
102, 445
107, 719
103, 685
104, 260
104, 685
105, 822
106, 168
106, 617
106, 974
107, 719
108, 187
109, 082
110, 174
110, 577
111, 625
113, 025

49, 818
54, 931
59, 112
63, 371
66, 768
66, 050
70, 218
67, 161
67, 502
67, 734
68, 568
68, 875
69, 308
69, 613
70, 218
70, 590
71, 136
71, 873
72, 213
72, 867
73, 801

For annual periods, ratio of weighted average inventories to average monthly

22




Mf mufacturc irsj new ord<?rs l

28, 147 45, 944
29, 724 46, 763
31, 763 50, 243
33, 703 53, 646
34, 877 52, 063
36, 395 55, 732
37, 501 63, 514
36, 524 62, 051
36, 758 63, 817
36, 951 61, 486
37, 254 64, 809
37, 293 66, 620
37, 309 66, 355
37, 361 67, 726
37, 501 68, 908
37, 597 70, 016
37, 946 71, 022
38, 301 72, 806
38, 364 73, 325
38, 758 74, 535
39, 224 75, 361

25, 720
25, 526
27, 666
29, 549
27, 431
29, 751
34, 867
33, 992
35, 396
33, 207
35, 772
37, 292
37, 127
37, 462
38, 325
39, 218
39, 765
41, 021
41, 341
42, 449
43, 016
42, 706

6, 971
7,694
7,021
7,339
8,983
8, 932
8,981
8, 954
8,899
9,727
9,625
9, 699
9,991
10, 277
10, 105
10, 572
10, 619
10, 919
11,415
11,447

20, 224
21, 238
22, 577
24, 097
24, 632
25, 981
28, 648
28, 059
28, 421
28, 279
29, 037
29, 328
29, 228
30, 264
30, 583
30, 798
31, 257
31, 785
31, 984
32, 086
32, 345

Manufacturers'
inventoryshipments3
ratio
1. 62
1. 76
1. 74
1. 76
1. 89
1. 82
L 67
1. 69
1.70
1. 71
1. 66
1. 65
1. 63
1. 60
1. 61
1. 58
1. 58
1. 58
1.57
1. 57
1. 58

shipments; for monthly data, ratio of inventories at end of month to shipments
for month.
Source: Department of Commerce.

MERCHANDISE EXPORTS AND IMPORTS
fThe U.S. merchandise trade balance was in deficit by $16 million In June, on a seasonally adjusted basis. The decline
of the deficit from $1 58 million in May to $16 million in June reflected a generally improving trend in the U.S. trade
position.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

1967

1973

T/SEE NOTE BELOW.
SOURCES DEPARTMENT OF COMMERCE

Period

COUNCIL OF ECONOMIC ADVISERS

[Millions of dollars]
Merch andise iinports
Alerchandise expor :&
Domesti D exports
Gen eral imp<>rts 3
Total (includ-l
2
mg ree xports)
Food, Crude
Food, Crude
Total
bever- mate- Manubever- mate2
facSeasonSeason- Unad- Total i
rials
rials
ages,
ages,
ally ad- justed
tured ally ad- Unad- and to- and
and to- and
justed
justed
justed
fuels
goods
bacco
bacco
fuels

Monthly average:
1964
1965
1966
1967
1968
1969
1970
1971
1972

2, 153
2, 229
2,458
2, 586
2,839
3, 111
3, 555
3,629
4, 102

2, 123
2, 201
2,421
2, 554
2, 802
3, 066
3, 502
3,576
4, 035

386
377
432
392
383
370
422
423
547

361
356
367
394
405
417
558
537
591

1, 562
1, 786
2, 135
2,241
2,769
3,004
3,329
3,797
4,630

1, 377
1,453
1,602
1,737
1, 985
2,232
2,445
2,537
2, 813

3,382
3,971

4,074

4,197
4,176
4,316
4,473
4,558
4,977
5,065
5, 380
5,487
5, 603
5, 778

4, 137
4, 015
3, 677
3,934
3,963
4,441
4, 583
4, 691
4, 747
4,864
5, 923
5, 561
6,023
5, 858

4, 071
3, 942
3, 618
3, 864
3,893
4, 380
4, 497
4,617
4,678
4, 795
5, 826
5, 456
5, 927
5, 755

508
528
496
536
594
636
711
749
752
744
881
843
903
1,023

565
557
509
549
478
672
761
730
736
815
1,023
898
975
873

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




419
453
476
447
503
533
545
606
737

759
937
204
313
719
918
159
535
146

590
444
323.
345.
70.
107
226
-168
-529

3,254
3, 306
2,928
3,232
2,976
3, 394
3, 585
3, 190
3, 604
3, 318
3, 737
3, 535
3,996
3,938

-604
-497
-491
-530
-436
-421
-675

1,
1,
1,
1,
2,
2,
3,

Unad ;usted

U nad juste i

1972: May
June
Julv - _ _
Aug
Sept
Oet_ _ _ _ _ _ _
Nov
Dec
1973: Jan
Feb
Mar
Apr
May
June

335
334
382
392
447
442
519
534
615

Grossmerchan^
dise trade
Manu- surplus,
seasonfacally adtured
justed
goods

2,913
2, 762
2,560
2,709
2, 745
3, 007
2, 927
3,040
3, 114
3, 140
3, 829
3, 583
3, 943
3,726

4,486
4,468

4,565
4,726
4,612
4,738
5,148
5,002
5,281
5, 541
5, 432
5,291
5, 761
5, 794

4,726
4,766
4, 314
4,727
4,491
5,009
5,201
4, 796
5, 423
4,945
5, 596
5,347
6, 032
5,901

608
614
548
632
628
692
662
639
726
645
714
757
835
724

731
715
712
728
756
775
810
822
930
853
994
914
1,070
1,077

-444

-304
-476
-53
196
-158
-10

NOTE.—Data adjusted to include silver ore and bullion reported separately
prior to 1969.
Source: Department of Commerce.
23

U.S. BALANCES ON GOODS, SERVICES, AND TRANSFERS
The balance on goods and services improved from a balanced position in the first quarter to a surplus of $706 million
in the second quarter, on a seasonally adjusted basis. This improvement, for the second quarter in a row, reflected the
continuing decline of the deficit in U.S. merchandise trade.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
SEASONALLY ADJUSTED

BALANCE ON GOODS
AND SERVICES

/ /

1967

1968

1970

1969

1971

1972

"SOURCE: DEPARTMENT OF COMMERCE

|

1

1973

COUNCIL OF ECONOAiiC ADVISERS

[Millions of dollars]
M erchandis

B

12

Period
Exports

1967.
1968
1969
1970 _
1971. ._ _ _ „
1972

30, 666
33, 626
36, 400
41, 964
42, 768
48, 769

Imports

Net
balance

Neti Qvestment i ncome

Milit<iry trans actions

Direct
expenditures

-26, 866 3? 800 -4, 378
-32, 991
635 -4, 535
-35, 807
593 -4, 856
-39, 788 2, 176 -4, 852
— 45, 466 -2, 698 -4, 829
-55, 681 -6, 912 -4, 724

Sales

1,
1,
1,
1,
1,
1,

240
392
512
478
912
166

Net
balance

Private 3

— 3, 138
-3, 143
-3, 344
-3, 374
2, 918
-3, 558

U.S.
Government

|

Net
travel
and
transportation
expenditures

5,848
40 — 1, 751
6? 157
63 - 1, 548
5, 820
155 - 1, 782
6, 374
-115 — 2, 013
8, 929
— 957 -2, 288
9, 751 - 1, 889-2,853

Other
services,
net

335
302
449
581
739
850

RemitBaltances,
ance
penon
sions,
goods
and
and
other
servuniices l 4 lateral
transfers 1
5, 132 -3,081
2,465 -2, 909
1,891 -2, 941
3,630 -3, 214
807 -3, 598
-4, 609 -3, 744

Balance
on
current
account
2, 051
-443
-1, 050
416
-2, 790
-8, 353

Seasonally adjusted
1972: I
!!____
Ill—
IV

11, 655 -13,475 — 1, 820— 1, 222
11, 539 -13, 313 — 1, 774— 1, 242
12, 362 -13, 935 -1,573 — 1, 108
13, 213—14, 958 - 1, 745-1, 151

328
288
262
287

-894
^954
— 846
-864

2, 290
2,252
2, 447
2, 763

-399
— 461
-497
-531

— 755
— 691
-679
-730

204 — 1, 374 — 9(>9 ,—2, 343
202 — 1, 426' —938 ,—2, 364
209
-939' —954 ' — 1, 893
237
-870;
-881 .-1, 751

1973: I
II"

15, 320 -16, 280
16,693 -10, 987

343

-824

2, 893

-646

-699

237

!
Excludes
1
Adjusted
3

-960 -1, 167
— 294

military grants.
from Census data for differences in timing and coverage.
Includes fees and royalties from U.S. direct investments abroad or from
foreign direct investments in the United States.

24




1> —751 ! —750
706! _ _
L
i
1
4
Equal to net exports of goods and services in the national income and product
accounts of the United States when converted to an annual rates basis.
Source: Department of Commerce.

U.S. OVERALL BALANCES ON INTERNATIONAL TRANSACTIONS
The U.S. balance of payments on an official reserve transactions basis was in surplus by $463 million (seasonally
adjusted) in the second quarter, compared to a deficit of $10y2 billion in the first quarter. This shift largely reflects the
decision of major European central banks to float their currencies, so that speculation in the second quarter had the
effect of depressing the value of the dollar in exchange markets instead of increasing the official dollar liabilities of the
United States.
BILLIONS OF DOLLARS
5 i

BILLIONS OF DOLLARS
SEASONALLY

ADJUSTED

BALANCE ON
CURRENT ACCOUNT
AND LONG-TERM
CAPITAL

-5

-10

-15

..

f

r

i

i

i

i
1968

1967

i

1

. 1

!

i

1969

f

!

f

!

1970

!

1

1971

!

I

!

i

SOURCE: DEPARTMENT OF COMMERCE

!

!

I -15

!

1973

1972

COUNCIL OF ECONOMIC" ADVISERS

[Millions of dollars]

Period

NonLong-tei m capital Balance liquid
Oil
flowss, net
current shortterm
account private
U.S.
and
longcapital
Private 2 term
Governflows2
capital
ment 1
net

1967
1968
1969
1970
1971
1972

-2, 423 -2,932 -3, 304 -522
231
~2, 158
1, 191 — 1, 411
-70 -3,046 -640
-1, 926
-2, 018 — 1, 429 -3, 031 -482
-2, 359 -4,401 -9, 550-2, 347
-I, 339 -151 -9,842 -1,637

Allocations
of
special
drawing
rights

Errors
and
omissions,
net

-857
-431
-2, 395
867 -1,205
717 -10, 784
710 -3, 112

Net
liquidity
balance

Liquid
private
capital
floWS,

net 2

Changes
in liaOfficial
reserve bilities
to
transactions foreign
official
balance agencies,
net 3

52
-4, 683 1, 265 -3,418
3, 366
1,641
3, 252
-761
-880
— 1,611
-6,081
8, 820
2, 739 — 1, 552 -1, 187
7, 362
2,477
— 3, 851 -5,988 — 9, 839
2, 348
-21,965 -7,788 -29, 753 27, 405
32
-13,882
3, 542 - 10, 340 10, 308

1
2

-289 — 1, 143 -3, 775 -535
604 -1,855
310
-95
— 393 -2,652 -430
-366
781 -1, 556 -982
-586
-344
-120 -1,214 - 1, 420

178
944 — 3, 188
178
-940 -2, 307
177 -1,626 -4, 531
177 - 1, 490 -3,851
-4,237 -6/709
- 1, 496

Excludes liabilities to foreign official reserve agencies.
Private foreigners exclude the IMF, but include other international and
regional organizations.
8 Includes liabilities to foreign official agencies reported by U.S. Government
and U.S. banks and U.S. liabilities to the IMF arising from reversible gold sales
to,4 and gold deposits with, the United States.
Official reserve assets include gold, special drawing rights, convertible currencies,
and the U.S. gold tranche position in the IMF.
£
Includes gain of $87 million resulting from revaluation of the German mark
in October 1969.




U.S.
official
reserve
assets,
net
(end of
period)
14,
15,
16,
14,
6
12,
13,

5

830
710
964
487
167
151

Unadjusted

Seastonally ad justed
1972: I
!!____
Ill—
IV._.
1973: I
II'

Changes
in U.S.
official
reserve
assets,
net 4

-288
1, 456
7
2, 367
3,830
1, 959

-3,476
-851
-4, 524
- 1, 484
-10, 539
463

3, 047
1, 082
4, 579
1, 595
10, 319
-480

429 12, 270
-231 7 13, 339
-55 13, 217
— 111 13, 151
220 88 12, 931
17 12, 914

G
Includes $28 million increase in dollar value of foreign currencies revalued to
reflect
market exchange rates as of Dec. 31, 1971.
7
Includes increase of $1,016 million resulting from change in par value of the
U.S.
dollar on May 8.
8
Dollar equivalents not revalued to reflect de facto conversion rates.
Sources: Department of Commerce and Treasury Department.

25

PRICES

CONSUMER PRICES

In July/ the consumer price Index rose 0.2 percent (also 0.2 percent seasonally adjusted). The increase, reflecting
the freeze / was the smallest since November 1972. Food prices rose 0.8 percent (0.5 percent adjusted). Nonfood
commodity prices decreased 0.2 percent (increased 0.1 percent adjusted), while services prices rose 0.2 percent.
Index, 1967=100

Index, 1967=100

1 140

100

1967

1973

SOURCE: DEPARTMENT OF LABOR

COUNCIl OF ECONOMIC ADVISERS

[1967 = 100]
Ail

Period

items

1964
1965
1966.
1967
1968
1969
1970
1971
1972

___

_

1972: June
July..
Aug___
Sept

Oct
Nov
Dec
1973: Jan
Feb
Mar
Apr
May. .
June
July

Source: Department of Labor.

26




.......

. .
.
.

__

92.9
94. 5
97. 2
100.0
1042
109. 8
116.3
121. 3
125. 3
125. 0
125.5
125.7
126. 2
126. 6
126. 9
127. 3
127.7
128. 6
129. 8
130. 7
131. 5
132. 4
132. 7

All com-

modities

94 6
95. 7
98.2
100. 0
103. 7
108. 4
113. 5
117. 4
120. 9
120.7
121. 2
121.4
122. 0
122.3
122. 7
122. 9
123.4
124.5
126. 1
127.4
128. 3
129.4
129. 7

Services
Commoditie 3
Comm odities legSB food
Services
All
Food
less
Non- services Rent
All
Durable durable
rent

92.4
94 4
99. 1
100.0
103. 6
108. 9
114. 9
118. 4
123. 5
123. 0
124. 2
124. 6
124.8
124. 9
125.4
126. 0
128. 6
131. 1
134. 5
136.5
137.9
139. 8
140.9

95.6
96. 2
97. 5
100. 0
103. 7
108. 1
112. 5
116. 8
119.4
119. 4
119. 4
119. 5
120. 3
120.8
121. 0
121. 1
120. 5
120. 9
121. 5
122. 3
123.0
123. 7
123. 3

98.8
98. 4
98.5
100.0
103. 1
107. 0
111. 8
116. 5
118. 9
119. 2
119. 6
119. 7
119. 8
120. 1
120. 3
120. 3
119. 9
119. 9
120. 2
121.0
121. 8
122. 3
122.4

93.5
94. 8
97. 0
100. 0
104. 1
108. 8
113. 1
117. 0
119. 8
119. 5
119. 3
119.4
120.8
121.3
121.7
121. 7
120. 9
121. 6
122.4
123.3
124. 0
124.7
1244

90.2
92. 2
95. 8
100. 0
105. 2
112. 5
121. 6
128. 4
133. 3
133. 1
133. 5
133. 8
134. 1
134. 6
134.9
135.4
135.7
136. 2
136. 6
137.0
137. 5
138. 1
138.4

95. 9
96. 9
98. 2
100. 0
102. 4
105. 7
110. 1
115. 2
119.2
119. 0
119. 2
119. 6
119. 9
120. 3
120. 5
121. 0
121. 5
122, 1
122.6
123.0
123. 5
123. 9
124. 3

89. 2
91. 5
95. 3
100. 0
105. 7
113. 8
123. 7
130. 8
135. 9
135.7
136. 1
136. 4
136. 7
137.2
137. 6
138. 0
138, 3
138.7
139. 2
139. 6
140. 1
140. 7
141. 0

WHOLESALE PRICES
The wholesale price index declined 1.3 percent in July (1.4 percent after adjustment for seasonal factors) reflecting
the effect of the freeze and the imposition of export controls on soybeans and cottonseed. Prices of farm products and
processed foods and feeds dropped 4.1 percent (4.6 percent seasonally adjusted) and industrial commodity prices
were unchanged (up 0.1 percent seasonally adjusted).
Index, 1967=100
180

90

90

1967

1972

COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF LABOR

All

Period

1964
1965
1966
1967
1968
1969...
1970
1971
1972
1972: June
July
Aug
Sept
Oct
Nov
Dec
1973: Jan
Feb
Mar
Apr
May.
June
July

commodities
94.7
96. 6
99. 8
100. 0
102.5
106. 5
110. 4
113. 9
119. 1
118.8
119. 7
119. 9
120. 2
120.0
120. 7
122. 9
124. 5
126. 9
129.7
130. 7
133. 5
136. 7
134. 9

[1967 = 100]
Farni products3 and
processc;d foods a nd feeds
ProcAll inFarm
essed
Total
dustriprodfoods
and
als1
ucts
feeds
95. 2
92.3
93. 2
94. 6
97. 1
98. 7
95. 5
96. 4
105. 9
98. 5
103. 5
101. 2
100. 0
100. 0
100.0
100.0
102. 5
102.4
102. 5
102. 2
108. 0
109. 1
106. 0
107. 3
112. 0
110. 0
111. 6
111. 0
112.
9
114. 0
114.
3
113. 8
122. 4
117.9
125.0
120. 8
124.0
121. 3
117.9
119. 6
124. 0
128. 0
118. 1
121. 5
123.8
121. 0
128. 2
118. 5
124. 5
121. 8
118. 7
128. 6
123. 3
121.8
125. 5
118. 8
125. 3
128. 8
119. 1
123. 1
132. 6
119.4
129.4
137. 5
144. 2
137.0
132. 4
120. 0
142. 4
121. 3
150. 9
137. 0
141.4
149. 0
122.7
160. 9
147. 9
124. 4
160. 6
139. 8
154. 9
170.4
125. 8
145. 0
163. 6
182. 3
126. 9
151. 8
173.3
146.5
126. 9
156. 9

1
Coverage of the subgroups does not correspond exactly to coverage of this
ndex.
2
Excludes crude foodstuffs and feedstuffs, plant an d animal fibers, oilseeds, and
leaf tobacco.




1973

Iridustrial c ommoditi es

Crude
mate-2
rials
97. 1
100. 9
104. 5
100. 0
102. 0
110. 6
118. 8
122. 7
131. 1
129.8
130. 2
132. 3
132.6
133.8
136. 3
136. 8
139. 1
142. 3
142.5
146. 8
149.6
152. 8
153. 5

Inter- Producmediate er finmate-3
ished
rials
goods
95. 6
96. 9
98. 9
100. 0
102. 6
106. 1
110. 0
114. 3
118.9
119.0
119.2
119. 5
119. 8
120. 1
120. 3
120. 5
121. 2
122. 6
124.8
126. 6
128. 0
128.9
128. 7

93.3
94. 4
96. 8
100. 0
103. 5
106. 9
111. 9
116. 6
119. 5
119.6
119. 7
119. 8
119. 9
119. 7
119.9
120. 3
120. 6
121. 2
121.7
122. 3
123. 1
123. 4
123.5

Consul]aer finished g()ods excludinc5 foods
DurNondurable
able
94.8
98. 2
97. 9
95. 9
97. 8
98. 5
100. 0
100. 0
102.
2
102. 2
104. 0
105. 0
108. 2
107. 1
111. 3
110. 9
113. 6
113.2
113.2
113. 5
113.8
113. 5
114. 2
113. 6
114. 5
113. 7
112. 7
114. 7
112.8
115. 0
115.2
113. 7
115. 4
113.8
117. 4
114. 0
114.5
117.8
119.8
115. 3
121. 6
115. 7
124. 7
115. 9
124. 5
116. 1

3
Excludes intermediate materials for food manufacturing and manufactured
animal feeds; includes, in part, grain products for further processing.
Source: Department of Labor.

PRICES RECEIVED AND PAID BY FARMERS
In the month ended July 1 5, both prices received and prices paid by farmers were unchanged. The actual and adjusted
parity ratios each rose 1 point.
Index, 1967=100

index, 1967=100
190

PRICES PAID,
INTEREST, TAXES, AND
WAGE RATES

RATIO V

RATIO-!'
90
P/U*ITY RATIO (ACTUA

u

/\x*

on

on

X'

^

"'''tie.******"""'""""^**** ,.»««""**,11,,mt»*"«**V*'*,,

ttf»,

»t»1**"i""f**»iin»**""*

70
60

90

»»»

1 M i -

! I ' 1 1 !

1 1 ! 1 1 I | ! ) } !

1967

*'"*"%„, ^,IH,.Ii^i^^^

\

^

I I I ! i 1 f ! I 1 !

I ! ! ! 1 ! ! 1 I 1 !

1969

1970

1968

I ! 1 1 I I 1 ! M

f

*

70

I 1 1 ! 1 1 ! 1 1

M

1 ! 1 1 ! 1 !

AO

1 1 1 1

1973

1972

1971

J/RATIO OF INDEX OF PRICES RECEIVED TO INDEX OF PRICES PAID, INTEREST, TAXES, AND WAGE RATES, ON 19)0-14=100 BASE.

cOUNCIL

SOURCE: DEPARTMENT OF AGRICULTURE

Prices paid by far mers

Prices received by farmers
All farm
products !

Period

1964
1965__
1966 _ _
1967
1968__
1969
1970 _
1971
_
1972

_

1972: June 15_ _
Julv 15
_ _
Aug 15
Sept 15
Get 15
Nov 15
Dec 15
1973: Jan 15
FeblS
Mar 15
Apr 15
_ _
May 15
_ _
June 15
July 15

93
98
105
100
103
108
110
112
126
125
127
1.28
129
130
131
137
144
149
159
157
163
172
172

!
!
i
i

!
i

n
Cr

s

°P

items?
! Livestock i All
interest,
!
and
taxes, and
products wage
rates
Index, 1967=100

106
103
105
100
101
97
100
107
115
116
115
117
117
117
120
127
131
133
140
143
154
170
164

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

28




Family
living
items

|

Production
items

OF ECONOM! C ADVISERS

Parity ratio
Actual

1

Adj usted 2

85
94
105
100
104
117
118
116
134

92
94
98
100
104
109
114
120
127

93
95
98
100
104
109
114
119
124

94
96
99
100
102
106
110
115
122

76
77
80
74
73
74
72
69
74

80
82
86
79
79
80
77
74
79

132
136
135
138
139
138
145

126
127
127
128
129
130
131

124
125
125
126
125
127
127

121
122
122
124
125
126
129

74
75
75
75
75
75
78

79
80
80
80
80
80
83

153
161
174
168
169
173
179

134
136
138
140
143
146
146

129
131
132
134
136
138
138

132
134
138
139
143
149
148

80
82
86
83
85
87
88

83
85
89
87
89
91
92

2
The adjusted parity ratio reflects Government payments made directly
farmers.
Source: Department of Agriculture.

MONEY, CREDIT, AND SECURITY MARKETS
MONEY STOCK
The seasonally adjusted money stock grew at a 6.1 percent annual rate in July, following a 1 3.2 percent rate of increase
in June. From December to July it rose at a 6.1 percent annual rate.
BILLIONS OF DOLLARS
350

BILLIONS OF DOLLARS
350

150

1973

1967
SOURCE: BOARD OF GOVERNORS Of THE FEDERAL RESERVE SYSTEM

COUNCIL OF ECONOMIC ADVISERS

[Averages of daily figures, billions of dollars]
1/loney stoc k
U.S.
stoc k
Time
Time
GovCurCurand
and
ernDeDerency
rency
savings
savings
ment
mand
mand
outoutTotal
dededemand
dedeside
side
posits l
posits l
deposits1
posits 1
!
banks
banks
; posits l
Seasonally7 adjusted
Unadj us tec1
5.0
40. 4
41. 2
151. 4
182. 1 1
146. 6
192.7
183. 1
5. 0
163. 4
43. 4
158. 2
44. 3
204. 2
207.7
203. 2 !
5. 6
46. 1
162. 7
167. 9
194. 4
214. 9
193. 2 1i
46. 9
7. 3
177. 8
49. 1
172. 2
228. 1
227. 7
50. 0
229. 2
6. 9
52.6
53.5
189. 2
242. 8
269. 8
183. 4
270. 9
7. 3
205. 0
56. 8
262. 9
57. 8
312. 8
198. 7
311. 7 :
54. 4
6. 9
54. 4
188. 8
190. 7
243. 2
291. 4
291. 7
7. 3
54. 6
191. 5
294. 0
55. 1
193. 1
295. 0
246. 6
54. 8
190. 5
5. 3
55. 1
299. 5 !
245. 5
193. 8
298. 9
302. 7
5. 9
55. 3
193. 5
194. 8
55. 2
301. 9
248. 7
6. 6
195. 5
304. 8
195. 9
251. 2
305.9
55. 7
55. 7
6.2
197. 7
307. 7
254. 3
56. 2
308. 4
56. 7
196. 5
7.3
262. 9
205. 0
312. 8
57. 8
56. 8
198. 7
311. 7
8. 0
262. 6
205. 9
57. 0
316. 9
56. 7
316. 6
198. 4
9. 6
197. 3
254. 0
322. 5
57. 5
322. 6
56. 7
199. 3
10. 1
254. 1
57. 3
196. 7
57. 9
198. 7
330. 9
331. 4
8. 2
201. 3
58. 2
336. 1
58. 7
259. 5
199. 5
336. 7
8. 4
197. 3
341. 8
58. 7
340. 9
59. 0
201. 6
256. 0
201.
8
342.
7
(•>.
9
59.
4
344. 1
59. 4
203. 9
261. 2
6.3
59. 5
263. 4
59. 9
345. 9
347.8
205. 1
203. 4

n^loney
Peri d

°

1967:
1968:
1969:
1970:
1971:
1972:
1972:

Dec
Dec
Dec
Dec
Dec___
Dec._
June
Julv
Aug _ _
Sept
Get
Nov
Dec
1973: Jan
Feb___
Mar..
Apr
Mav
June v
Julv P_

Total

'
i
1
1

... _ ..
_ _ _~J
:
_ ___
_
'
_ _ - _ _ _!
i
_
_
_
_
_
_
_ __

_ __
_

'Deposits at commercial banks.




187.0
201.6
208,8
221.3
236. 0
255. 5
245.1
247. 7
248. 6
250. 1
251. 6
252. 7
255. 5
255.4
256. 7
256.6
258. 2
260. 5
263. 2
264. 5

Source: Board of Governors of the Federal Reserve System.

29

PRIVATE LIQUID

HOLDINGS - NONFINANCIAL INVESTORS

Private nonflnancial investors increased their holdings of liquid assets by $6.6 billion (seasonally adjusted) in July,
down from the revised $9,2 billion rise in June. As so often happens, the largest increases were in time deposits at banks
and thrift institutions and in negotiable certificates of deposit.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

1100

1,100

1,000

1,000

900

800

700

500

400

300

1967

1973

SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

COUNCIL OF ECONOMIC ADVISERS

[Averages of daily figures; billions of dollars, seasonally adjusted]
Cum3ncy and deposits

Total
liquid
assets

Period

Time c e posits
Total

Currency

Demand
deposits

fY>m

banks

1966:
1967:
1968:
1969:
1970:
1971:
1972:

Dec
Dec
Dec
Dec
Dec
Dec
Dec

_

_

_

1972: June
July
Aug
Sept
Oct
Nov
Dec

1973: Jan
Feb
Mar___
Apr _
May
June
July p __ _

,_

_




ShortNonbank
term
Savings marketthrift
institubonds able setions
curities

Negotiable
certificates of
deposit

Comrnereia
paper

590.
640.
699.
730.
781.
865.
975.

6
7
1
9
5
7
8

473. 7
520.4
563. 2
582. 2
630. 7
719. 3
814.6

38.3
40. 4
43. 4
46. 1
49. 1
52. 6
56. 8

121. 1
129. 4
139. 4
143. 6
151. 5
161. 3
174. 7

136. 9
156. 3
174. 4
177. 2
198. 7
233. 4
264. 8

177. 3
194, 2
205. 9
215. 4
231. 4
272. 0
318. 2

50. 1
51. 0
51. 4
51. 1
51. 3
53.7
57. 0

43. 6
39. 9
47. 2
65. 3
53.8
41. 5
43. 4

23. 0
29. 8
39. 2

9.0

8.
10.
14.
23.
22.
21.
21.

918.
927.
935.
944.
953.
963.
975.

1
3
9
4
3
8
8

767. 1
775. 7
783. 3
790. 9
799. 1
805. 9
814. 6

54. 4
54. 6
54. 8
55. 3
55. 7
56. 2
56. 8

167. 8
169. 5
170.2
171. 2
172. 1
172. 7
174, 7

249. 4
251. 9
254.9
257. 0
259. 8
262. 2
264. 8

295. 6
299. 6
303. 4
307.4
311. 5
314. 9
318. 2

55. 3
55. 6
55. 9
56. 1
56. 4
56. 7
57. 0

39. 4
38. 9
39. 1
39.4
40. 2
42. 1
43. 4

34. 3
35. 2
36. 1
36. 7
36. 6
37. 5
39.2

21.
21.
21.
21.
21.
21.
21.

981. 4
990. 5
1, 002. 0
1, 012. 2
1, 023. 4
1, 032. 6
1, 039. 2

821. 2
827. 5
832. 6
839.0
845. 5
853. 1
857. 5

57. 0
57. 5
57.9
58. 7
59.0
59.4
59.4

173. 9
174. 6
174.2
175. 3
177. 1
179. 2
180. 2

267.6
268. 9
271.0
272. 8
274. 8
276. 8
278.3

322.
326.
329.
332.
334.
337.
339.

57. 2
57. 6
57. 9
58.2
58. 5
58.8
59. 1

41. 5
40. 9
42.2
42. 6
44. 2
45. 0
43.9

39.9
44. 0
49. 8
53. 6
56.4
56.4
58.8

21.
20.
19.
18.
18.
19.
19.

Source: Board of Governors of the Federal Reserve System.

30

U.S. Crovernmeiit sc;curities

7
6
5
3
6
7
6

14. 5
19. 1
22. 4

BANK LOANS, INVESTMENTS, DEBITS, AND RESERVES
Commercial bank loans and investments (seasonally adjusted) increased at a 10.1 percent annual rate in July. Net
borrowed reserves were about unchanged.
BJLLIONS OF DOLLARS
700

BILLIONS OF DOLLARS
700

ALL COMMERCIAL BANKS

300

200
INVESTMENTS IN
U.S. GOVERNMENT SECURITIES

100

1973
COUNCIL OF ECONOMIC ADVISERS

SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

All commercial banks
(seaso nally adjust ed data)

End of period

L oans
Investrnents
Total
loans
Total,
Comand
U.S. Gov- Other
mercial
invest- excludernment
securiments ing inter- and indus- securities
ties
bank
trial

Bank
debits
outside
New York
City (232
centers) ,
seasonally
adjusted
annual
rates 1

&L!! membe r banks ^

Total
reserves

Vlillions o r dollars

Billions of dollars

1967
1968
1969
1970
1971
1972
1972: July
Aug
Sept
Oct
Nov
Dec
1973: Jan *>
Feb p
Mar v*
Apr p
May
June2 p
July '.

3

352. 0
390. 6
402. 1
435. 9
485.7
557. 5
521. 3
529. 1
535. 6
540. 5
549.8
557. 5
564. 6
573. 7
582. 6
585. 3
594. 6
596. 6
601.4

231. 3
258. 2
279. 4
292. 0
4
320. 6
378.2
347. 8
355. 3
360. 1
366.9
373. 6
378. 2
385. 5
396. 2
404. 9
408. 0
416. 1
417. 8
423. 3

3

3

86.2
95.9
105. 7
109.6
115. 5
129. 3
121. 5
123. 9
124. 6
126.7
128.2
129. 3
133.2
138. 1
141. 8
144. 1
147. 2
148. 9
151. 0

3

59.3
61. 0
51. 5
58.0
60.7
62.4
62. 3
61.4
62. 0
59. 9
60. 6
62.4
61. 9
60. 2
60. 6
60. 6
59.7
60. 8
58. 7

1
Debits during period to demand deposit accounts except interbank and
.S.
Government.
2
Averages
of daily figures. Annual data are for December.
8
Beginning June 1969, data include all bank-premises subsidiaries and other
ignificant majority-owned domestic subsidiaries; earlier data include comlercial
banks only.
4
As of June 1971, Farmers Home Administration notes totaling about $0.7
jillion are classified as other securities rather than as loans.
r




Borrowings at
Excess Federal
Free
reserves Reserve reserves
Banks

61.4
71.4
71.2
85.9
104. 5
116.9
111. 3
112. 5
113.5
113.6
115.6
116. 9
117. 1
117.2
117. 2
116. 6
118. 7
118.0
119. 5

3
4

8,755
4,360
5,150
5,717
6,443

7,530
7,361
7,818
7,738
7, 748
8,175
8, 179
8, 617
8, 822
9,087
9,073
9,256
9,398

25, 260
27, 221
28, 031
29, 265
31, 329
5
31, 353
33, 021
33, 148
33, 003
33, 803
5
31, 774
31, 353
32, 962
31, 742
31, 973
32, 277
32, 393
32, 028
33, 524

345
455
257
272
165
5
219
147
255
162
247
5
314
219
342
205
295
152
118
59
322

238
765
1,086
321
107
1,049
202
438
514
574
606
1,049
1, 165
1, 593
1,858
1, 721
1,786
1, 789
2, 051

107
-310
-829
-49
58
5
-830
— 55
— 183
-352
-327
5
-292
-830
-823
-1,388
-1,563
-1,569
- 1, 668
— 1, 730
— 1, 729

5
Beginning November 9, 1972 adjusted to include certain reserve deficiencies
on which penalties can be waived for a transition period in connection with
adaptation to Regulation J.

Source: Board of Governors of the Federal Keserve System.

31

CONSUMER AND REAL ESTATE CREDIT
Seasonally unadjusted consumer credit rose $2.8 billion in June compared to a $2.4 billion rise a year earlier. Con
sumer instalment credit (seasonally adjusted) increased $1.6 billion in June.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

TOTAL CONSUMER CREDIT OUTSTANDING

1973

1967

COUNCIL OF ECONOMIC ADVISERS

SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Period

1964
1965
1966
1967
1968 _
1969 _
1970
1971
1972
1972: May
June
Julv
Aug _ _
Sept__
Oct
Nov __
Dec _ _ _
1973: Jan _ ___
Feb _ _ _
Mar
Apr

MayJune

[Millions of dollars]
Consum er instalment credit e:rtended
Consu mer credit outstandin g (end of period;
and r epaid (seas anally adju sted)
umad justed)
Automobile paper
To tal
][nstalment
NonAuto moinstal- Extended Repaid Extended Repaid
Total
Personal
Total i
bile
ment 2
paper
loans

80, 268
89, 883
96, 239
100, 783
110, 770
121, 146
127, 163
138, 394
157, 564
141, 450
143, 812
145, 214
147, 631
148, 976
150, 576
152, 968
157, 564
157, 227
157, 582
159, 320
161, 491
164, 277
167, 083

62, 692
70, 893
765 245
79, 428
87, 745
97, 105
102, 064
111,295
127, 332
114, 183
116, 365
117, 702
119, 911
121, 193
122, 505
124, 325
127, 332
127, 368
127, 959
129, 375
131, 022
133, 531
136, 018

24, 934
28, 437
30, 010
29, 796
32, 948
35, 527
35, 184
38, 664
44, 129
40, 063
41, 019
41, 603
42, 323
42, 644
43, 162
43, 674
44, 129
44, 353
44, 817
45, 610
46, 478
47, 518
48, 549

17, 848
20, 237
21, 662
23, 235
25, 932
28, 652
30, 345
32, 865
36, 922
34, 077
34, 588
34, 832
35, 450
35, 755
36, 003
36, 413
36, 922
36, 870
37, 108
37, 486
37, 695
38, 376
38, 928

iAiso includes other consumer goods paper, and repair and modernization
loans,
not shown separately.
2
Consists of single-payment loans, charge accounts, and service credit.

32




17, 576
18, 990
19, 994
21, 355
23, 025
24, 041
25, 099
27, 099
30, 232
27, 267
27, 447
27, 512
27, 720
27, 783
28, 071
28, 643
30, 232
29, 859
29, 623
29, 945
30, 469
30, 746
31, 065
3

70, 670
78, 661
82, 832
87, 171
99, 984
109, 146
112, 158
124, 281
142, 951
11, 687
12, 057
11, 687
12, 484
11, 953
12, 404
12, 846
12, 627
13, 304
13, 434
13, 852
13, 465
13, 932
13, 646

63, 470
70, 463
77, 480
83, 988
91, 667
99, 786
107, 199
115, 050
126, 914
10, 355
10, 671
10, 593
10, 841
10, 667
10, 908
11, 128
10, 964
11, 355
11, 437
11, 808
12, 061
11, 941
12, 034

24, 046
27, 208
27, 192
26, 320
31, 083
32, 553
29, 794
34, 873
40, 194
3,274
3,412
3,298
3,491
3,368
3, 504
3, 620
3,763
4, 006
3,972
4, 001
3, 822
3,989
3,762

21, 369
23, 706
25, 619
26, 534
27, 931
29, 974
30, 137
31, 393
34, 729
2, 819
2,922
2, 917
2,896
2, 873
3,041
3, 023
2, 977
3, 097
3, 145
3, 225
3,218
3,261
3,253

End of period, unadjusted.
Source: Board of Governors of the Federal Reserve System.

Mortgage
debt outstanding,
nonfarm,
1- to 4family
houses 3

197, 600
212, 900
223, 600
236, 100
251, 200
266, 800
280, 200
307, 800
» 346, 100
324, 600
335, 800
» 346, 100

v 353, 900
* 365, 800

BOND YIELDS AND INTEREST RATES
Market Interest rates continued to rise sharply in late July and mid-August. The largest increases occurred in 3-rnonth
Treasury bill and commercial paper rates.
PERCENT PER ANNUM
10
WEEKLY

I
j
I

PRIME
COMMERCIAL
PAPER

no

CORPORATE Aaa BONDS
(MOODY'S)

1967

1971

1970

SOURCE: SEE TABLE BELOW

Period

1967_
1968
1969
1970
1971.
1972
1972: July

_

Aug

_

Sept

Oct
Nov. _
Dec
1973: Jan
Feb
Mar
Apr
May
June
July

1973

1972

COUNCIL OF ECONOMIC ADVISERS

[ Percent per annum j
High-grade
U.S.- Gov arnment secu rity yields
municipal
3-month
bonds
3-5 year
Taxable
Treasury
2
3
(Standard &
issues
bonds
bills i
Poor's) 4

4. 321
5. 339
6. 677
6. 458
4. 348
4. 071
4. 059
4. 014
4. 651
4. 719
4. 774
5. 061
5. 307
5. 558
6. 054
(>. 289
6. 348
7. 188
8. 015

Corpora te bonds

(Moc dy's)
Aaa

Baa

5. 07
5.59
6. 85
7. 37
5. 77
5.85
5. 86
5.92
6. 16
6. 11
6. 03
6. 07
6. 29
6. 61
6. 85
6. 74
6. 78
6. 76
7. 49

4. 85
5.26
6. 12
6. 58
5. 74
5. 64
5. 59
5. 59
5. 70
5. 69
5. 51
5. 63
5. 96
6. 14
6. 20
6. 11
6. 25
6. 32
6. 53

3. 98
4.51
5. 81
6. 51
5. 70
5. 27
5. 39
5. 29
5. 36
5. 20
5. 03
5. 03
5. 06
5. 12
5. 30
5. 16
5. 12
5. 15
5. 39

5. 51
6. 18
7. 03
8. 04
7. 39
7. 21
7. 21
7. 19
7. 22
7. 21
7. 12
7. 08
7. 15
7. 22
7. 29
7. 26
7. 29
7. 37
7. 45

6. 23
6. 94
7. 81
9. 11
8. 56
8. 16
8. 23
8. 19
8. 09
8. 06
7. 99
7. 93
7. 90
7. 97
8. 03
8. 09
8. 06
8. 13
8. 24

7. 48
7. 76
8. 02
8. 16
7. 80

6.
6.
6.
7.
6.

5. 37
5. 49
5. 55
5. 54
5. 50

7.45
7. 47
7. 53
7. 61
7. 71

8.25
8. 27
8. 33
8. 43
8. 54

Prime
commercial
paper,

4-6
months

5. 10
5. 90
7. 83
7. 72
5. 11
4. 69
4. 85
4. 82
5. 14
5. 30
5. 25
5.45
5. 78
6. 22
6. 85
7. 14
7.27
7. 99
9. 18

Aug
Week ended:
1973: July 20 _ _

27__
Aug 3 _ _
10
17__
24

7.
8.
8.
8.
8.
6
8.

967
114
320
486
976
910

1
Rate on new issues within period.
3
April 1953 to date, bonds due or callable
4
Weekly
data are Wednesday figures.
5

50
63
95
04
87

~ Selected note and bond issues.
10 years and after.

Data for first of the month, based on the maximum permissible interest rate
(7 percent beginning February 18, 1971) and 30-year mortgages paid in 15 years;




0.
9.
9.
10.
10.

FHA
new home
mortgage
yields 5

6. 55
7. 13
8. 19
9. 05
7. 78
7. 53
7. 54
7. 54
7. 55
7. 56
7.57
7.57
7. 56
7. 55
7. 56
7, G3
7. 73
7. 79
7. 89
8. 19

15
60
88
05
25

6
Not charted.
Sources: Department of Housing and Urban Development, Treasury Department, Board of Governors of the Federal Reserve System, Moody's "investors
Service, and Standard & Poor's Corporation.
oo

COMMON STOCK PRICES, YIELD, AND EARNINGS
The stock market rose in late July but declined sharply by mid-August.
Index, 1941-43=10

Index, 1941-43=10

120
COMPOSITE PRICE INDEX FOR
500 COMMON STOCKS

110

110

A

100

90

90
80
70

70

60 I r . t i f t I I > M i I i M M I t i f t r I i i t i i I i i M i I t i i » i I i i i t i I » » i i i I i i i i i I i i t i i t f t t i i I t . t . t i.t I .?.. i t t i

60

T
PERCENT

RCENT

4

RATIO

RATIO

25

PRICE/EARNINGS RATIO ON COMMON STOCKS

20
15
10

15
t

1

!

!

1967

1968

1969

1970

1972

1971

SOURCEs STANDARD & POOR'S CORPORATION

1967
1968
1969
1970 «
1971
1972
1972: July
Aug
Sept
Oct.
Nov
Dec
1973: Jan
Feb...
Mar
Apr _
May._
June
July
Week ended:
1973: July 6
13

20__
27
Aug 3
10
17

_

„
__

_

Total

Total

91. 93
98.69
97. 84
83. 22
98.29
109. 20
107. 21
111. 01
109. 39
109. 56
115. 05
117. 50
118. 42
114. 16
112. 42
110. 27
107. 22
104. 75
105. 83

99.18
107. 49
107. 13
91. 29
108. 35
121. 79
119. 98
124. 35
122. 33
122. 39
128. 29
131. 08
132. 55
127. 87
126. 05
123. 56
119. 95
117. 20
118. 65

1941HL3=10
96. 96
79. 18
105. 77
86.33
103. 75
87. 06
80. 22
87. 87
102. 80
99. 78
119. 39
113. 91
119. 13
112. 57
124. 47
116. 17
121. 63
113. 19
112. 94
119. 50
122. 11
119. 51
124. 57
122. 26
127. 04
122. 57
125. 56
117. 54
124. 53
116. 41
120. 38
111.24
116. 48
107. 44
114. 75
104. 83
116. 31
105. 94

101.
104.
106.
108.
107.
105.
102.

114. 01
116. 64
119. 16
122. 40
120. 89
119. 10
115. 64

110.
116.
117.
120.
118.
116.
115.

96
21
29
95
49
84
81




Consumers'
goods

Capital
goods

1
Includes 500 common stocks: 425 industrials, 55 public utilities, and 20 railroads. Weekly indexes for capital and consumer goods are Wednesday figures;
all2 other weekly indexes are averages of daily figures.
Aggregate cash dividends (based on latest known annual rate) divided by
the aggregate monthly market value of the stocks in the group. Annual yields

34

10

f

COUNCIL OF ECONOMIC ADVISERS

Price index l
Industrials

Period

!

1973

21
75
37
92
00
62
52

100.
105.
107.
110.
107.
106.
103.

79
12
00
85
96
68
05

Railroads

Dividend
yield 2
(percent)

68. 10
66.42
62. 64
54.48
59.33
56.90
53.47
54. 66
55.36
56.66
61. 16
61.73
60. 01
57. 52
55. 94
55. 34
55.43
54. 37
53. 31

46.72
48.84
45. 95
32. 13
41. 94
44. 11
42.00
43. 28
42. 37
41.20
42.41
44. 62
42.87
40. 61
39. 29
38.88
36. 14
34.35
35. 22

3.20
3.07
3. 24
3. 83
3. 14
2. 84
2. 90
2. 80
2. 83
2. 82
2. 73
2.70
2. 69
2.80
2,83
2. 90
3. 01
3. 06
3.04

53.18
53. 53
53.41
53. 38
51. 93
50. 77
49. 56

33.98
35. 14
35. 60
35. 84
35. 12
34. 48
33. 60

3. 15
3. 03
3.03
2. 94
3. 06
3. 11
3. 19 1

Public
utilities

Price/
earnings
ratio s

17.48
17.66
16.48
15.69
18.50
18.20
18. 00

18,39
16.40

are3 averages of monthly data. Weekly data are Wednesday figures.
Ratio of price index for last day of quarter to earnings for 12 months ending
with that quarter. Annual ratios are averages of quarterly data.
Source: Standard & Poor's Corporation.

FEDERAL FINANCE
FEDERAL BUDGET RECEIPTS AND OUTLAYS AND DEBT
In the fiscal year 1973 there was a deficit of $14.4 billion or $8.8 billion less than in fiscal 1972.
BILLIONS OF DOLLARS
RECEIPTS AND

BILLIONS OF DOLLARS
OUTLAYS

260

260

220

220
OUTLAYS

180

180

RECEIPTS

140

140

too

j

100

N

IENLARGED SCALE)

(ENLARGED SCALE)

-20

-20

-40

-40

1963

1964

1965

1966

1967

1968

1969

1970

1971

SOURCES, TREASURY DEPARTMENT AND OFFICE OF MANAGEMENT AND BUDGET

1972

1973

1974

COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars]
Federal debt ( end of period)
Receipts

Period

Fiscal year:
1962
1963
1964

Outlays

Surplus or
deficit (— )

Total1

Held by
the public

99.7
106.6
112.7

106.8
111. 3
118.6

-7.1
— 4.8
-5.9

303.3
310. 8
316.8

248.4
254.5
257. 6

1965
1966
1967
1968
1969

116. 8
130. 9
149.6
153.7
187.8

118.4
134. 7
158. 3
178. 8
184.5

-1.6
-3.8
-8.7
-25.2
3.2

323.2
329.5
341. 3
369.8
367. 1

261.6
264.7
267.5
290. 6
279. 5

1970
1971
1972
1973*
19742

193.7
188.4
208.6
232.2
266.0

196.6
211.4
231. 9
246.6
268.7

-2. 8
-23. 0
— 23.2
— 14.4
-2.7

382.6
409. 5
437. 3
468.4
490.5

284. 9
304. 3
323.8
343.0
348.5

-

i Excludes non-interest-bearing public debt securities held by IMF.
* Estimates as revised June 1,1973.




Sources: Treasury Department and Office of Management and Budget.

35

FEDERAL BUDGET RECEIPTS BY SOURCE AND
OUTLAYS BY FUNCTION
In the fiscal year 1973 receipts were $23.6 billion higher than in fiscal 1972 and expenditures were $14.7 billion
higher.
BILLIONS OF DOL LARS

BiLLICDNS OF DOLLARS
120
RECEIPTS

120
^^^^^

100

100

^B^^^°^^^^^
^»—-—«^^

80

^X^

INDIVIDUAL INCOME TAXES

^^^^^1 -"""

^X^

^«***~*"***^^ 11
.,..«••»*"""
^
.tt"""*""""" """

80

8,»..«»»""""T

---"•—

\^^^

60 ""

«*»****

\

- 60

OTHER RECEIPTS

40

40
20

_

„„

"\

— —-

20

CORPORATION INCOME TAXES

I

0

!

!

1

.

!

1

I

1

i

!

!

0
^**

180

OUTLAYS

180

+++*

^*

160
140 —

160

— 140

^**

120

120
NONDEFENSE

^-*****^

100

100

80

80
.* — *•""

60
40 /!

^a^^^'^

1
1963

1
1964

NATIONAL DEFENSE

1

1965

1
1966

1967

!

!

1968

1969

60
! ...._
1970

!
1971

I
1972

1
1973

K 40
1974

FISCAL YEARS
SOURCES: TREASURY DEPARTMENT AND OFFICE OF MANAGEMENT AND BUDGET

COUNCIL OF ECONOMIC ADVISERS

IBillions of dollars]

()utlays

Reeeij)ts
Natioiaal defense
Period

Fiscal year:
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972 __
1973"
1974 i
1

Total

99. 7
106. 6
112. 7
116. 8
130. 9
149. 6
153. 7
187. 8
193. 7
188. 4
208. 6
232. 2
266. 0

Estimates as revised June 1,1973.

36




Individual
income
taxes

Corporation
income
taxes

Other

Total

45. 6
47. 6
48. 7
48. 8
55. 4
61. 5
68. 7
87. 2
90. 4
86.2
94. 7
103. 3
116. 0

20. 5
21. 6
23. 5
25. 5
30. 1
34. 0
28. 7
36. 7
32. 8
26. 8
32. 2
36. 1
41.5

33. 6
37.4
40. 5
42. 6
45. 3
54. 1
56. 3
63. 9
70. 5
75. 4
81. 7
92.8
108.5

106. 8
111. 3
118. 6
118. 4
134. 7
158.3
178. 8
184. 5
196. 6
211. 4
231. 9
246. 6
268. 7

Total

51. 1
52. 3
53. 6
49. 6
56. 8
70. I
80. 5
81. 2
80. 3
77. 7
78. 3
76. 1
81. 1

Department of
Defense,
military

46. 9
48. 1
49. 6
46. 0
54. 2
67. 5
77. 4
77. 9
77.2
74.5
75. 2
73. 3
78. 2

Interna- Health
tional
Inand
affairs
income terest Other
and
finance security

4. 5
4. 1
4. 1
4. 3
4. 5
4. 5
4. 6
3. 8
3. 6
3. 1
3.8
3.2
3.8

23. 7
25. 5
26. 8
27. 4
31. 5
37. 8
43.7
49. 3
56. 7
70. 6
81.5
91. 2
103.7

8. 3
9. 2
9. 8
10. 4
11. 3
12. 6
13. 7
15. 8
18. 3
19. 6
20. 6
22. 8
24.7

Sources: Treasury Department and Office of Management and Budget.

19. 2
20. 3
24. 2
26. 7
30. 6
33.2
36. 2
34. 4
37. 7
40. 5
47. 6
53. 4
55.4

FEDERAL SECTOR, NATIONAL INCOME ACCOUNTS BASIS
According to preliminary estimates for the second quarter, Federal receipts rose $8.9 billion (seasonally adjusted
annual rate) and expenditures rose $3.8 billion resulting in an approximate balance in the Federal Government account.
BILLIONS OF DOLLARS
300

BILLIONS OF DOLLARS

140
120
+20

••20
SURPLUS

H O nr,

i i imn™
i

^

I

iII i^ i w I

i

•20

P

"

-90

i

DEFICIT

!

-40

!

I

I

i

1967

f

1968

I

I

I

!

1

1

!

1970

1969

1
l971

!

]

\

\

\

1972

\

\

-40

1973

CALENDAR YEARS
COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF COMMERCE

[Billions of dollars, quarterly data at seasonally adjusted annual rates]
Feeleral Go^/ernmemb expend]itures

Federal (^overnm ent receipts

Period

Fiscal year :
1969
1970____
1971
1972
1973
Calendar
j ear :
1969
1970
1971
1972

Surplus
or
Subsidies Less :
Grantsdeficit
less
ContriPurin-aid
Indirect
CorpoWage
Personal rate business butions
(-),
current accruals income
chases Trans- to State Net
and
for
Total tax
tax and
Total of goods fer pay- and interest surplus of less
and
nontax profits
disnontax social inand
ments local
paid Governtax
product
receipts accruals
services
government en- burse- accounts
accruals surance
terprises ments
ments

190.
195.
192.
213.
242.

4
2
6
7
9

90. 0
93. 6
87. 4
100. 1
107. 1

37.4
33. 3
32. 2
34.7
44.0

18. 6
19. 2
20. 1
19. 9
20. 6

44. 4
49. 1
52. 9
59. 0
71. 1

185.7 99.4
195. 9 98. 0
212. 6 95. 9
233. 2 103. 2
255. 0 105. 0

50. 7
56. 8
69. 7
78. 6
89. 1

19. 2
22. 6
26. 8
32. 9
40. 2

12. 3
14. 0
14. 3
13.4
14. 3

4. 1
4. 7
5. 8
5 2
6.3

0.0
.1
—.1
.0
.0

4. 7
. /
— 19. 9
-19. 5
— 12. 1

197.
192.
198.
228.

3
0
9
7

94. 8
92. 2
89. 9
107. 9

36. 6
31. 0
33. 3
37. 8

19. 0
19. 3
20. 4
19. 9

46. 9
49. 5
55. 2
63. 0

189.
203.
221.
244.

2 98. 8
9 96. 2
0 98. 1
6 104. 4

52. 4
63. 2
74. 9
82. 9

20. 3
24. 4
29. 1
37. 7

13. 1
14. 6
13. 6
13. 5

4. 6
5.5
5.3
6. 1

.0
.0
.0
.0

8. 1
-11. 9
— 22. 2
-15. 9

1972: I
222. 9
II_. _ 225. 4
III-_ 229. 6

105.
106.
108.
111.

6
6
1
3

36. 0
36. 7
38. 0
40. 7

19. 7
19. 7
19. 9
20. 3

61. 5
62. 4
63. 6
64. 6

236. 6
244. 4
237. 0
260. 3

106.
106.
102.
102.

0
7
3
7

79. 7
80. 1
80. 8
91. 0

32. 2
38. 0
34. 4
46. 1

13. 1
13. 6
13.4
13. 7

5. 5
5. 9
6.2
6.7

.0

-13. 8
- 19. 0
— 7. 4
-23. 4

253. 6
1973: I
II»- 262. 5

108. 5
111. 4

46. 6
50. 9

20. 7
21. 2

77.8
79.1

258. 6 105. 5
262.4 107. 3

91. 8
93. 8

41. 1
40. 5

14. 7
15. 6

5. 5
5.1

IV___ 236. 9

—.1
.0
.0

.0

—.1

-5. 0
.1

Source: Department of Commerce.




37

UNITED STATES
GOVERNMENT PRINTING OFFICE

U.S.

POSTAGE AND FEES PA!D
GOVERNMENT PRINTING OFFICE

DIVISION OF PUBLIC DOCUMENTS

WASHINGTON, D.C. 2O4O2
OFFICIAL BUSINESS

First-Class Mail

Contents
TOTAL OUTPUT, INCOME, AND SPENDING
The Nation's Income, Expenditure, and Saving
Gross National Product or Expenditure
National Income
Sources of Personal Income
Disposition of Personal Income
Farm Income
Corporate Profits
Gross Private Domestic Investment
Expenditures for New Plant and Equipment

Page

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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

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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. Balances on Goods, Services, and Transfers
U.S. Overall Balances on International Transactions

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PRICES
Consumer Prices
Wholesale Prices
Prices Received and Paid by Farmers

MONEY, CREDIT,

...IIIIIII

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SECURITY MARKETS

Money Stock
Private Liquid Asset Holdings—Nonfinancial Investors
Bank Loans, Investments, Debits9 and Reserves
Consumer and Real Estate Credit
Bond Yields and Interest Rates
Common Stock Prices, Yieldf and Earnings

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Federal Budget Receipts and Outlays and Debt-Federal Budget Receipts by Source and Outlays by Function
Federal Sector, National Income Accounts Basis

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„

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

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402
Price 55 cents (single copy). Subscription price: $6.50 per year; $1.75 additional
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S. G O V E R N M E N T P R I N T I N G O F F I C E : 1973