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9th Congress, 1st Session

FEBRUARY 1965

Prepared for the Joint Economic Committee by the




Council of Economic Advisers

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1965

JOINT ECONOMIC COMMITTEE
(Created pursuant to Sec. 5(a) of Public Law 304, 79th Cong.)
WRIGHT PATMAN, Texas, Chairman
PAUL H. DOUGLAS, Illinois, Vice Chairman
HOUSE OT REPRESENTATIVES
RICHARD BOLLING (Missouri)
HALE BOGGS (Louisiana)
HENRY S. REUSS (Wisconsin)
MARTHA W. GRIFFITHS (Michigan)
THOMAS B. CURTIS (Missouri)
WILLIAM B. WIDNALL (New Jersey)
ROBERT F. ELLSWORTH (Kansas)

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

JAMES W. KNOWLES, Executive Director
MARIAN T. TRACY, Financial Clerk
HAMILTON D. GEWBHR, Administrative Clerk

COUNCIL OF ECONOMIC ADVISERS
GARDNER ACKLEY, Chairman
OTTO ECKSTEIN
ARTHUR M. OKUN
Economic Indicators prepared under supervision of FRANCES M. JAMES
[PUBLIC LAW 120—81sr CONGRESS; CHAPTER 237—IST SESSION]

JOINT RESOLUTION [SJ. Res. 55]
To print the monthly publication entitled "Economic Indicators"
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the Joint
Economic Committee be authorized to issue a monthly publication entitled "Economic Indicators," and that a
sufficient quantity be printed to furnish one copy to each Member of Congress; the Secretary and the Sergeant at
Arms of the Senate; the Clerk, Sergeant at Arms, and Doorkeeper of the House of Representatives; two copies to
the libraries of the Senate and House, and the Congressional Library; seven hundred copies to the Joint Economic
Committee; and the required number of copies to the Superintendent of Documents for distribution to depository
libraries; and that the Superintendent of Documents be authorized to have copies printed for sale to the public.
Approved June 23, 1949-




Charts drawn by Graphics Unit, Office of the Secretary, Department of Commerce-

Indicators, published monthly, is available at 2 5 cents a single copy
or by subscription at $2.50 per year (foreign, $3.50) from:
SUPERINTENDENT OF DOCUMENTS
GOVERNMENT PRINTING OFFICE
WASHINGTON, D.C. 20402
Subscribers who wish to receive it at an earlier date after release may take advantage of provisions for airmail subscriptions. The domestic airmail subscription
price is $5.40 per year.

TOTAL OUTPUT, INCOME, AND SPENDING
THE NATION'S INCOME, EXPENDITURE, AND SAVING
Gross national product rose $6.2 billion to $634.6 billion (seasonally adjusted annual rate) in the fourth quarter of
1964, according to current estimates. This represents a $1.1 billion upward revision of the preliminary estimate,
primarily as a result of the large rise in December exports.
[Billions of dollars; quarterly data at seasonally adjusted annual rates]
Business

Persons
Period

19551956_
19571958195919601961.

1963 s
1964
1963: III...

IV—.

1964: I
II.—.
III-.

Personal
Disposable consumption
personal
income1 expenditures
274. 4
292. 9
308.8
317.9
337. 1
349. 9
364.7
384. 6
402. 5
431.8
404.4
411. 2
419. 5
430. 2
435. 6
442. 1

256. 9
269. 9
285. 2
293. 2
313. 5
328. 2
337.3
356.8
375. 0
399. 3
377.4
381. 3
390.0
396. 1
404.6
406.5

International

Personal
Net exports of goods Excess of
Excess Foreign
Gross
saving
Gross
net
and services
transfers
private
of
(+) or retained domestic invest- trans(+) or
disearnfers by
of net
2
investment Governsaving
ings
Net
ExImexports
ment*
ment exports ports ports
17. 5
23. 0
23. 6
24. 7
23. 6
21. 7
27.3
27. 8
27. 5
32. 5
27.0
29. 9
29. 5
34.0
31.0
35.5

42. 1
43. 0
45. 6
44. 8
51. 3
50. 7
51.2
57. 5
59.1
65. 0
60.2
59. 7
64. 1
65. 2
65. 9

63. 8
67. 4
66.1
56. 6
72.7
71.«
68.8
79. 1
82.0
87. 7
82.8
87. 1
85.9
87. 2
87. 3
90.4

-21. 8
-24. 3
-20. 5
-11. 9
-21. 4
-21. 1
-17. 6
-21. 7
-22. 9
-22.6
-22. 6
-27. 4
-21.8
-22.0
-21. 4

1.5
1.5
1.5
1.3
1. 5
1. 6

1.6
1.8
1. 6
1. 7
1. 5
1. 6
1. 7
2.2

1. 1

2. 9
4. 9
1.2
-.8
3.0
4.6
4. 0

4. 4
7.0
4.2
5. 8
7.7
5. 7
7.0
7.7

19.4
23. 1
26.2
22.7
22.9
26. 3
27.6
29.2
30.7
35. 2
31.0
32. 6
34. 5
33.7
35.7
37. 1

18.3
20.2
21. 3
21.5
23. 6
23. 3
23.0
25.2
26.3
28.2
26. 8
26. 9
26.8
27.9
28. 7
29.4

0.4

-1. 5
-3. 5
.1
2.3
-1.4
-3.0

-2.4
-2.8
-5. 3
-2.6
-4. 1
-6.2
-4. 1
-5.2
-5,5

Government
Net receipts
Period

.955 ______
.956 ______
.957 ______
.958 _____
959 _____
960 _____
961 _____
962 _____
963 6_____
964 ____
963: IIIIV964: I--.
II-.
IV

Tax and
nontax
Net
receipts receipts
or
accruals
78. 4
84. 2
87. 5
82. 0
95. 7
103. 5
103. S
114. 4
123. 4
125. 7
124. 5
128. 1
125. 2
124. 1
126. 6

101. 4
109. 5
116. 3
115. 1
130. 2
140. 6
145. 6
157. 8
168. 9
173. 3
169.7
174. 0
172. 7
171. 1
173. 9

Expenditures

Surplus Total
( + ) or income
deficit
or
TransPurTrans- (-) on receipts
fers,
chases
Total
fers,
income
interest, of goods expendi- interest,
and
and sub- and
tures and sub- product
a
6
sidies
services
sidies
account
23. 0
25. 3
28. 7
33. 1
34. 4
37. 1
41.8
43. 4
45. 4
47. 6
45.2
45. 9
47. 5
47.0
47. 3
48. 4

75. 6
79. 0
86. 5
93. 5
97. 2
99.6
108. 0
116. 3
122. 6
128.6
122. S
124. 8
125. 2
129. 6
129. 5
130.0

1
Personal Income (p. 5) less personal taxes arid nontax payments (fines, penalss, etc.).
2
Undistributed corporate profits, corporate inventory valuation adjustment,
ipltal consumption allowances, and excess of wage accruals over disbursements.
'oes not include retained earnings of unincorporated business which are inaded in disposable personal income.
* Private business investment, purchases of capital goods by private nonprofit
stitutions, and residential housing.




98. 6
104. 3
115. 3
126. 6
131. 6
136. 7
149. 8
159. 8
168. 0.
17G. 2
168. 0
170. 7
172. 7
176. 6
176. 9
178.4

23. 0
25. 3
28. 7
33. 1
34. 4
37. 1
41. 8
43. 4
45. 4
47. 6
45.2
45. 9
47. 5
47. 0
47. 3
48. 4

2. 9
5. 2
1. 0
-11. 4
-1. 5
3.9
-4.2
-1. 9
.9
-2.9
1.7
3.3
(!)
-5. 5
-3.0

398. 5
421. 6
443. 4
446.0
485.7
505. 6
521.2
558. 0
586. 7
624. 4
590. 7
600. 8
610. 4
621.0
629. 8

Gross
Statis- national
tical
product
discrepor
ancy
expenditure

1. 0
-2.4
-. 6
-1. 5
-3. 0
-3.0
-2. 6
-1.8
-2.7
-1.7
-3.5
-1. 8
-1. 6
-2.4
-1. 4

397. 5
419.2
442. 8
444. 5
482. 7
502. 6
518.7
556. 2
583. S
622.6
587. 2
599. 0
608. 8
618. 6
628. 4
634. 6

4
5
6

Net foreign investment with sign changed.
Preliminary estimates.
Government transfer payments to persons, foreign net transfers by Government, net interest paid by government, and subsidies less current surplus of
government enterprises,
7
Less than $50 million.
NOTE.—Data for Alaska and Hawaii included beginning 19CO.
Source: Department of Commerce.

1

GROSS NATIONAL PRODUCT OR EXPENDITURE
Gross national product, seasonally adjusted, registered a sain of about 1 percent in the fourth quarter of 1964, slightly
less than the average for the preceding 3 quarters as strikes curbed output and sales of new cars. After adjustment
for price changes, tne gain was over one-half of 1 percent.

BIILIONS OF DOLLARS

BILLIONS OF DOLLARS
SEASONALLY ADJUSTED ANNUAL RATES

600

600

GROSS NATIONAL PRODUCT
500

500
PERSONAL CONSUMPTION
EXPENDITURES

400

400

300

300

GOVERNMENT PURCHASES
OF GOODS AND SERVICES

->

\
TOO

100

ininw"1*1"*""11"""*'"*"
• GROSS PRIVATE DOMESTIC
INVESTMENT

NET EXPORTS OF GOODS
AND SERVICES
\

1

r

_!

1959

1960

1_
1961

1962

1963

1964

SOURCE, DEPARTMENT OF COMMERCE

COUNCIl OF KOUOmC ADVlSBiS

Total
Personal
gross
Total
conprivate exports
national gross
sump- domestic of goods
product national
tion
and
in 1964 product expend- invest- services
ment
prices
itures

Period

1965

Gove rnment ] >urchases of gooc s and
services
Federal
State
Total Total > National Other and
2
local
defense

Implicit
price
deflator
for total
GNP,
1964=100 =

Billions of dollarsi, quarter y data at seasonal ly adjus ed annua ! rates

1952
1953
1954
1955
1956
1957
1958
1959_._
1960 1961...
1962

.._

1963
1964*

1963: III
IV
1964: I
II
III
IV <
1

Less Government sales,

4S9.0
448.9
439.8
473.4
483. 5
493. 0
486. 0
518. 1
531. S
541.6
575. 7
595. S
6SS. 6
598. 0
608. S
618.9
620. S
626. 6
630.6

347.0
365.4
363. 1
397.5
419. 2
442. 8
444 5
482. 7
502. 6
518. 7
556. 2
583.9
622.6
587.2
599.0
608. 8
618.6
628. 4
634.6

219. 8
232. 6
238.0
256. 9
269. 9
285. 2
293. 2
313. 5
328.2
337. 3
356. 8
375. 0
399.3
377. 4
381. 3
390. 0
396. 1
404 6
406.5

49. 9
50.3
48. 9
63.8
67.4
66. 1
56. 6
72. 7
71. 8
68. 8
79. 1
82.0
87.7
82.8
87. 1
85. 9
87. 2
87. 3
90.4

J
Prior to 1959, this category corresponds closely with budget expenditures for
national defense, shown on p. 35. Beginning with 1959, they differ because of
Seclusion of space program expenditures IB this table: these expenditures, small
fa 1959-61, amounted to $4.3 billion in 1964.




1. 3
-. 4
1.0
1. 1
2.9
4. 9
1. 2
-. 8
3. 0
4. 6
4. 0
4.4
7.0
4. 2
5. 8
7.7
5.7
7. 0
7.7

76.0
82. 8
75.3
75. 6
79. 0
86. 5
93. 5
97. 2
99. 6
108. 0
116. 3
122. 6
128.6
122. 8
124.8
125. 2
129. 6
129. 5
130.0

52. 9
58.0
47.5
45.3
45. 7
49. 7
52. 6
53.6
53. 1
57.4
62.9
64.7
65.5
64.4
64.9
64. 3
67. 1
65. 5
65.3

46.4
49.3
41.2
39. 1
40. 4
44.4
44. 8
46. 2
45.7
49. 0
53. 6
55.2
55.4
55. 5
55.3
54.0
57. 0
55. 2
55.3

6.7
9.0
6.7
6.6
5.7
5.7
8.3
7.9
8.0
8.9
10. 2
10. 3
11.2
9. 5
10. 5
11. 5
11.0
11.2
11.3

23. 2
24. 9
27. 7
30.3
33.2
36. 8
40. 8
43. 6
46. 5
50. 6
53. 5
57.9
63.0
58.4
59.9
60. 9
62. 5
64. 1
64.6

80. 9
81. 4
82.6
84.0
86. 7
89.8
91.5
93.2
94. 6
95. 8
96. 6
98. 1
100.0
98. 2
98. S
99.3
99.7
100. 3
100.6

3
Gross national product in current prices divided by gross national product
In 1964 prices.
' Preliminary estimates.
NOTE.—Data for Alaska and Hawaii Included beginning 1960.
Source: Department of Commerce.

NATIONAL INCOME
Compensation of employees rose $5,8 billion, or 1.6 percent, to $370.6 billion (seasonally adjusted annual rate)
in the fourth quarter of 1 964. Rental, interest, and proprietors' incomes also increased.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

600

600

SEASONALLY ADJUSTED ANNUAL RATES

TOTAL NATIONAL INCOME
500

500

400
COMPENSATION OF EMPLOYEES

300

CORPORATE PROFITS AND
INVENTORY VALUATION ADJUSTMENT

PROPRIETORS' AND
RENTAL INCOME

100 -

100

1959

1965

I/PRELIMINARY ESTIMATES.
COUNCIL OF ECONOMIC ADVISERS

SOURCE. DEPARTMENT OF COMMERCE

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

Period

--

_
-

1)57

D58
,)59
160
)61
)62__ .
>63 3
)64

-

)C3: III
IV
104: I._
II
III 3

IV

1

Farm

Business
and professional

Rental
income
of
per-

Net
interest

-

Total

37.7
37.3
33.7

148

42. 0
41.7
37. 2
47.2
44.5

Profits Inventory
before valuation
taxes 2 adjustment

50. 8
57. 0

36.7
38. 3
34. 1
44.9
44.7
43.2
37.4
47.7
44. 3
44. 2
48.2
51. 3
57. 2

24.7
25.4

51.4
53. 1

51. 3
54. 3

25. 9
26.5
27. 1
27. 6

56.4
57. 9
58. 1

56. 6
57. 9
58.0

195. 0
208. 8
207.6
223. 9
242. 5
255. 5
257.1
278. 5
293. 6
302.2
323. 1
340. 3
361. 7

15. 3
13. 3
12.7
11. 8
11.6
11.8
13. 5
11.4
12. 0
12. 9
13. 2
13. 0
12.7

26.9
27.4
27. 8
30. 4
32. 1
32. 7
32. 5
35. 1
34. 2
35.3
36.6
37. 6
39.3

10. 2
10. 5
10. 9
10.7
10.9
11. 9
12. 2
11. 9
12. 1
12.2
12.2
12.3
12.4

16. 4
18. 1
20. 1
22. 1
24. 4
26. 8

342. 7
347.7

12. 9
13.2

37. 8
38.3

12.4
12. 4

498. 4
507. 1
514. 5

352. 5
358.6
364.8
370. 6

12. 6
12. 6
12. 6
12. 9

38.6
39. 1
39. 6
39. 9

12. 4
12.4
12. 4
12. 5

(See also p. 4.)

Corpora ^e profits and inventory va! uation ad iustment1

7.1
8.2

292. 2
305. 6
301.8
330.2
350.8
366. 9
367. 4
400. 5
414. 5
426. 9
455. 6
478.5
509. 8

includes employer contributions lor social insurance.
'; Sop Note, page 7.
l 'reliminary estimates.




Proprieto -a' income

481. 9
490.0

952
953
1)54
!)55.
356

Compensation
of employees '

9. 1
10.4
11.7
13.4

4a i

44. 1
48. 4

1.0
-LO
-.3

-1.7
-2.7

-L5
-.3
—.5
.2

-. 1
.3
—.4
-.2
.2

• -i-2
2
•*

.i

-.7

NOTE.—Data for Alaska and Hawaii included beginning 1660.
Source: Department of Commerce.

3

SOURCES OF PERSONAL INCOME
Personal income rose $3% billion in January to a seasonally adjusted annual rate of $509.6 billion. Increases in
wages and salaries and stepped-up Government life insurance dividend payments to veterans were largely responsible
for the rise.
BILLIC NS OF DOLLARS

BILLIONS OF DO -LARS
550
SEASC ANALLY ADJUSTED ANNUA L RATES

f

500

_^

^-^

TO!FAL PERSONAL INCOME

^^^1
_^ -~^^

450

^-^

^^\

j r

400

^—'

-"

350

WAGE AND SAL/^RY DISBURSEMENTS
J\'

300

«•••*""""

--

300

---

_
50

BUSIN ESS, PROFESSIONAL,
AN[3 RENTAL INCOME

......

.=

••-

\

„„„.

•
^TRANSFER PAYMENTS

50
h
-.
'
^xFARM PROPRIE1ORS' INCOME

77777rrr,'T7 "7777,777777 7777777777," 7777777,7771'7777777777
I960

1959

1961

1962

SOURCE: DEPARTMENT OF C DMMERCE

Period
1956
1957
1958
1959
1960
1961
1962
1963 4
1964
1963: Nov
Deo
1964: Jan
Feb
Mar
Apr
May
June
July
Aug
Sept__-_
Oct
Nov..
Dec<___
1965: Jan1.,,

Total
personal
income
332.9
351. 4
360. 3
383. 9
401. 3
417. 6
442.4
464. 1
491. 4
473. 8
477. 1
479.4
480. 5
482. 9
486. 6
487. 8
489. 3
491. 4
494. 9
497. 9
498.7
502. 3
505. 9
509.6

1963

, ,7 ,7777, , ,

*i i i t i I i i i i i

1964

1965
COUNCIL OF ECONOMIC ADVISER

[Billions of dollars, monthly data at seasonally adjusted annual rates]
Wage
Less: Per- NonagriRental
and
Other Propriet<>rs' income income
Divi- Personal Transfer sonal con- cultural
salary
labor 2
Business
paytributions
interest
of
Farm
disburse- income
and pro- persons dends
income ments for social personal
3
1
fessional
ments
insurance income
11.6
10.9
12. 1
8. 1
32. 1
17. 5
18. S
227. 6
5.8
317.9
9. 1
11. 8
32.7
11. 9
12. 6
19. G
21. 9
238. 5
6. 7
336. 1
12. 2
239. 8
13.5
82. 5
12, 4
21. 0
26. 3
9. 4
6.9
343. 0
11. 4
11. 9
258. 5
10. 4
35. 1
23. 5
27. 5
13.7
7.9
sea 6
271. 3
11. 0
12. 0
12. 1
34. 2
25. 8
29. 5
14.5
9. 2
385. 1
12. 2
11.6
12.9
15.2
278. 8
35. 3
27. 5
33. 6
9.6
400. 4
13.2
12. 2
12.3
297. 1
36. 6
16. 5
34. 7
30.0
10. 3
424.9
312. 1
12. 3
13. 1
13. 0
37. 6
18. 0
32.9
36.7
11.8
446.6
12. 7
12. 4
14.1
331. 6
39. 3
19. 8
36. 0
38. 2
474 2
12.7
38.2
12. 4
318.3
13. 5
13. 2
34. 2
37.2
18.8
11. 9
456. 1
12. 4
13.5
38.4
320. 0
13. 2
20. 1
34. 4
37. 2
12. 1
459. 5
13.6
12. 8
12.4
320. 8
19. 3
34. 7
38.3
39. 7
12.2
462. I
12. 6
323. 6
13.7
12.4
38. 7
19.4
35. 0
37. 5
12. 3
463. 5
12.4
12.4
325. 1
13. 8
38. 8
35. 3
19.6
37.8
12.4
466. 1
12. 4
327.7
12. 5
13. 9
39. 0
38.2
19. 8
35. 5
12. 5
469.7
12. 6
12. 4
328.7
14. 0
39. 1
19. 8
35. 7
38. 0
12. 5
470.7
14. 1
12. 4
12. 6
39.3
330.1
19.9
35.9
37. 6
12.6
472. 1
331. 8
14. 2
12. 4
12. 4
39.5
20.0
36. 0
37. 8
12. 7
474, 4
334.6
12. 6
12. 4
14. 2
39. 6
20.0
36. 2
38.0
12. 8
477.8
14. 3
12. 4
337. 2
12. 7
39. 7
19. 9
36.5
12. 9
38.0
480.6
337.3
14.4
12. 5
19. 9
12.7
39. 8
36.7
12. 9
38.3
481.4
340. 4
14. 5
12. 5
12. 9
19. 9
39. 9
36.9
13.0
3a4
485.0
342.6
14. 5
40. 1
12. 5
13. 1
20. 6
37. 2
38.5
13. 1
488.6
343.9
14.6
12.8
12.5
40.3
20.4
37.4
13.2
*40. 8
492.4

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




>

DIVIDENDS AND
PERSONAL K MEREST

<

larm wages, agricultural net interest, and net dividends paid by agricultural
corporations.
1
Preliminary.
*Beflects stepped-up payments for veterans' insurance.
NOTE.—Data for Alaska and Hawaii included beginning 1960.
Source: Department of Commerce.

ISPOSITION OF PERSONAL INCOME
ccording to current estimates, disposable personal income advanced $6% billion (seasonally adjusted annual rate)
the fourth quarter of 1964. Consumer spending, held down by auto strikes, increased about $2 billion and the
ving rate rose to 8.0 percent.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

500

450

450

400

400

350

350

300

300

DOLLARS

DOLLARS

2,400

2,400

2,200

2,200

2,000

2,000

1,800 I/

1,800

I960

1961

1963

1962

1965

1964

^/PRELIMINARY ESTIMATES.
COUNCIL OF ECONOMIC ADVISERS

SOURCE; DEPARTMENT OF COMMERCE

Personal
income

Less:
Personal
taxes

Equals:
Disposable
personal
income

- 288. 3
289. 8
310. 2
332. 9
351. 4
360. 3
-. 383. 9
401. 3
417.6
442. 4
464. 1
491. 4

35. 8
32. 9
35. 7
40. 0
42. 6
42. 3
46. 8
51.4
52.9
57. 9
61. 6
59. 5

252. 5
256. 9
274. 4
292. 9
308. 8
317. 9
337. 1
349. 9
364. 7
384.6
402. 5
431. 8

33: III- 466. 3
474. 5
IV
34: I
480. 9
II— 487. 9
III.. 494. 5
IV »_ 502. 2

61. 9
63. 3
61. 4
57.7
58. 8
60. 2

404. 4
411. 2
419. 5
430. 2
435. 6
442.1

Period

53
54
55
56
57
58
59.,
00
01

B2
B3

04 3

L 3ss:
Persona . eonsump tion expe aditures
Total

NonDurable durable Services
goods

Billions of dollars
232. (j
32. 9
81. 8
118.0
32. 4
119. 3
86. 3
238. 0
92.5
256. 9
39. 6
124. 8
100. 0
38. 5
269. 9
131. 4
107. 1
40. 4
137. 7
285. 2
114. 3
141. 6
37.3
293. 2
122. 8
313. 5
43. 6
147. 1
131.5
328, 2
44.9
151.8
43.7
337.3
138.3
155.4
356. 8
162. 0
146. 4
48. 4
52. 1
375.0
167. 5
155. 3
399. 3
57. 0
177. 3
165. 1
Seaso nally adjiistecl anniial rates
52. 2
156. 6
377. 4
168. 6
53. 6
168. 9
158. 8
381. 3
172. 9
390. 0
55. 9
161. 1
396. 1
175. 3
163.8
57. 0
404. 6
58. 7
179. 5
166. 4
406. 5
56. 3
181. 3
169. 0

income in current prices divided by the implicit price deflator for personal
sumption expenditures on a 1964 base.
Population of the United States including armed forces abroad. Annual
i :is of July l; quarterly data centered.in the middie of the period, interpolated
11 monthly figures.




Equals:
Personal
saving

19. 8
18.9
17.5
23. 0
23. 6
24. 7
23. 6
21. 7
27.3
27. 8
27. 5
32. 5
27. 0
29. 9
29. 5
34. 0
31. 0
35.5

Saving as
percent Populaof disposable (thoupersonal sands) 2
1964
Current
prices ' income
prices
(percent)
Dol lars
7.8 159, 559
1,833
1, 582
7.4 162, 388
1, 582
1,815
6. 4 165, 276
1,896
1, 661
7. 9 168, 225
1, 741
1,956
7. 6 171, 278
1, 803
1, 968
1,957
1,826
7.8 174, 154
7.0 177, 080
1,904
2,015
6.2 180, 684
1,936
2,021
2,057
7.5 183, 756
1,985
2, 060
7.2 186, 656
2, 116
6.8 189, 375
2, 125
2, 155
2, 248
7. 5 192, 072
2, 248
posable jersonal
inco me

2, 131
2, 159
2, 195
2, 243
2, 264
2,289

2, 159
2, 178
2,205
2,245
2,261
2,281

6.7
7.3
7.0
7.9
7. 1
8.0

189,
190,
191,
191,
192,
193,

3 Preliminary estimates.
NOTE.—Data for Alaska and Hawaii included beginning 1960.
Sources: Department of Commerce and Council of Economic Advisers.

756
498
120
744
434
145

FARM INCOME
Net farm income, seasonally adjusted, rose 6Va percent in the fourth quarter of 1964 excluding inventory change and
2% percent including the effects of changes in inventories.

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
SEASONALLY ADJUSTED ANNUAL RATES

50

50

REALIZED GROSS
FARM INCOME

\
40

30

30

NET FARM INCOME
INCLUDING NET INVENTORY
CHANGE

20

20

\
10

1959

1961

1960

1963

1962

Personal income re ceived by
total i"arm popt lation

] ncome re ceived from farming 1

Realize d gross

1955
1956
1957
1958
1959
1980
1961
1962
1963.
1964
1963: III
IV
1964: I
II.-.
III
IV. _

From
From
From
all
farm nonfarm
sources sources sources

-

-

-

18.3
18.6
18.8
20.5
19.0
19.6
20.1
20.4
19.9
19.6

12.2
12.0
12.2
13.8
11.8
12.3
13.1
13.3
13. 0
12.7

6. 1

6.6

6. 6

6.7

7. 1

7.2

7.G

7. 1

6.8
6.9

Net t 3 farm
oper ators

Net inc ome per
farm incl uding net
inventor} change3

Cash tion ex- Exclud- Includreceipts penses ing net in- ing net in- Current 1964
from
Total »
ventory ventory prices prices *
marketchange change 2
ings
Dol lars
Billions (>f dollars
2,529
2,810
21. 9
11. 5
33.3
29. 6
11. 8
2,829
22. 6
12.0
2,574
34.6
30. 6
11. 6
34. 4
23.4
2, 695
2,867
11.0
11. 8
29.8
12.6
13.5
3,201
37.9
33.4
25. 3
3,369
26.2
11.3
2,775
2,891
37. 5
33. 5
11. 4
11.7
12.0
3,044
3,138
37. 9
34.0
26.2
34. 9
12.6
12.9
3,389
3,494
27.0
39.6
3,654
12.6
13. 2
3,581
36.1
28.3
40.9
29.2
12. 5
13.0
3,643
3,680
41.7
36.9
3,656
12.6
12.7
3,656
29.4
42.0
36.7
Seas onally ad usted amuial rates
29. 2
12.4
12.9
3,610
41. 6
3,650
36. 8
12. 8
3,730
37.2
29.2
13. 2
3,690
42.0
12. 6
3,630
29.6
12.3
3,670
41.9
36.7
12. 3
12. 6
42. 0
3, 630
3,630
36. 8
29. 7
12. 6
3,630
12.5
3,630
36. 2
41. 6
29. 1
13.3
12.9
3,710
37.1
29.2
3,710
42.5

1 Cash receipts from marketings, Government payments, and nonrnoney income furnished by farms.
'Inventory of crops and livestock valued at the average price for the year.
E
Based on 1959 Census of Agriculture definition of a farm. The number of
terms is held constant within a year.




1965
COUNCIL OF ECONOMIC ADVISERS

SOURCE, DEPARTMENT Of AGRICULTURE

Period

1964

^Income in current prices divided by the index of prices paid by farmers for
family living items on a 1964 base.
Source: Department of Agriculture.

ORPORATE PROFITS
ccording to current estimates, corporate profits before and after taxes were maintained during the third quarter of
'64 at the seasonaliy adjusted record levels reached in the second quarter.

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

1959

1962

1965

1963

•SEE NOTE ON TABLE BELOW.

J/EXCLUDING INVENTORY VALUATION ADJUSTMENT.

COUMClt OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF COMMERCE

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

Period

54
55
56
57_58
59
SO
01.
62
03
34 3.

IIIIV..
04: I
03:

ii—
iii-3

IV .

Corf >orate pr ofits (befc>re taxes) and inver tory
ivaluation adjustmei it
TransCorpo- CorpoM anufactm ing
portation,
rate
rate
All
profits
tax
comAll
NonDurable durable muniother before liabilindusity
goods
Total industries
goods cations, indus- taxes
and
tries
public
tries
tries
utilities

18. 4

33. 7
43. 1
42. 0
41. 7
37. 2
47. 2
44. 5
44. 1
48. 4
50. 8
57.0
51. 4
53. 1
56. 4
57. 9
58. 1

25. 0
23. 5
22. 9
18. 3
25.4

23. 0
21. 7
24. 7
26. 7
30.7
27. 8
27. 8
30. 6
31.7
31. 2

10. 1
14. 2
12. 6
13. 1
9.0
13.4
11. 6
10.9
13.2
14. 4
16.5
14.7
15. 4
16. 6
17. 0
16. 9

8.3
10.8
10. 9
9.8
9.3
11.9
11.4
10.8
11.5
12.3
14.2
13.1
12. 4
13. 9
14. 8
14.3

4.4
5. 4
5. 6
5. 5
5. 6
6. 7
7.0
7. 3
8. 0
8.4
8.9
8.4
8.7
8. 5
8.8
9.3

11. 0
12.8
12. 9
13. 3
13. 3
15. 1
14. 4
15. 1
15. 7
15.7
17.4
15. 2
16. 6
17. 4
17. 4
17.6

Includes depreciation, capital outlays charged to current accounts and acciil.al damages.
Corporate profits after taxes plus corporate capital consumption allowances.
Preliminary estimates.
43-412° —G5

2




34. 1
44. 9
44. 7 i
43. 2 *
37.4
47.7
44. 3
44. 2
48. 2
51. 3
57.2
51. 3
54.3
56.6
57. 9
58.0

17. 2
21.8
21. 2
20.9
18.6
23. 2
22. 3
22. 3
23.2
24. 6
25.6
24 5
26.0
25.4
26. 0
26.0

Cori3orate pr ofits
a fter taxe s

Total

16.8
23.0
23. 5
22.3
18. 8
24. 5
22. 0
21.9
25. 0
26. 7
31.6
26.7
28. 3
31. 2
31. 9
32. 0

Corporate
capital
conUnDividend distrib- sumption
payuted
ments profits allowances '
9.8
11. 2
12. 1
12. 6
12.4
13.7
14.5
15. 2
16. 5
18.0
19.8
17.9
19. 1
19.4
19. 8
20. 0
20.2

7.0
11.8
11.3
9.7
6.4
10.8
7.5
6. 7
8. 5
8.7
11.8
8.9
9.2
11.8
12. 1
12. 0

15.8
18.4
20. 0
21. 8
22.7
24. 3
25. 6
26. 9
30. 5
31. 8
33.7
32. 1
32. 4
33. 0
33. 4
33.8
34.4

Profits
plus
capital
consumption
allowances *
32.7
41.4
43.5
44. 1
41.4
48.7
47.6
48.8
55.5
58. 5
65.3
58. 8
60.7
64.2
65. 3
65. 8

NOTE.—-Data beginning 1962 have been adjusted for effects of new depreciation
guidelines ($2£3 billion for 1962) and therefore not comparable with previous data.
Data for Alaska and Hawaii included beginning i960.
Source: Departmentof Commerce.

GROSS PRIVATE DOMESTIC INVESTMENT
Gross private domestic investment increased by slightly more than $3 billion (seasonally adjusted annual rate) in the
fourth quarter of 1964. Increased business inventory accumulations accounted for most of the increase.

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

100

100
SEASONALLY ADJUSTED ANNUAl .RATES

80

GROSS PRIVATE
DOMESTIC INVESTMENT
60

60
NEW CONSTRUCTION

40

40
PRODUCERS'
DURABLE EQUIPMENT
/__.,]

„„...»"•—""

„„„..•«»"'

..
.H
O ' " "
"* " "

20

20

CHANGE IN BUSINESS
/ INVENTORIES

V

I

i

I

1959

1960

1961

1963

1962

i

i

1964

i

1965

^PRELIMINARY ESTIMATES.
COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF COMMERCE

[Billions of dollars, quarterly data at seasonally adjusted annual rates]
Total
gross
private
domestic
invest- Total
ment

Period

1952
1953
1954
1955
1956
1957
1958— -. _
1959
1960
1961
1962
1963 3
1964
1963: III
IV
1964: I _ _ II

in.-

IV 3 . ..

49.9
50. 3
48.9
63.8
67.4
...
._

66. 1

56. 6
72.7
71. 8
68.8
79. 1
82.0
87.7
82.8
87. 1
85.9
87.2
87. 3
90.4

46.8
49. 9
50. 5
58.1
62.7
64. 6
58. 6
66. 2
68. 3
66.9
73. 3
77.6
84.0
78. 6
80.7
83.4
83. 5
84.5
84.7

New cons truction *
Total

Resi'dential
nonfarm

25. 5
27. 6
29. 7
34.9
35.5
36.1
35.5
40.2
40. 7
41.0
44.2
46.6
48.9
47.2
48.3
49.2
48. 9
48. 9
48.7

1
Revisions in series on new construction shown on p. 19 have not yet been incorporated into these series.
a
"Other" construction in this series includes petroleum and natural gas well
drilling, which are excluded from estimates on p. 19.

8




Change in business inv entories

Fix 3d investBaent

12. 8
13. 8
15. 4
18. 7
17.7
17.0
18.0
22. 3
21. 1
21.1
23. 6
25. 2
26.0
25.4
26. 2
26.9
26. 2
25. 7
25. 1

Otller

Total

12. 7
13.8
14. 3
16. 2
17.8
19. 0
17.4
17. 9
19.7
19. 8
20. 6
21.3
22. 9
21. 9
22. 1
22. 3
22. 7
23. 1
23.6

2

Nonfarm

10.8
12.1
12. 7
14. 6
16.3
17.5
15. 9
16. 2
18. 0
18.2
19.0
19.8
21.4
20.3
20.6
20. 8
21. 1
21. 6
22.1

Produceare' durable eqilipment
Total
21. 3
22. 3
20. 8
23. 1
27. 2
28. 5
23. 1
25.9
27. 6
25.9
29.0
31.0
35.1
31.4
32. 4
34.2
34. 6
35.6
36.0

Total

Non-

Nonfarm
1& 6
19. 5
18. 5
20. 6
25. 0
26. 2
20. 3
23. 1
25.1
23.3
26.3
27.9
31.6
28.5
29. 1
30.7
31. 2
32. 1
32.3

3. 1
.4
-1.6
5. 8
4.7
1. 6
— 2. 0
6. 6
3.5
1.9
5.9
4.4
3.7
4.2
6.4
2. 5
3.7
2.8
5.7

3
Preliminary estimates.
NOTE.—Data for Alaska and Hawaii included beginning 1960.
Source: Department of Commerce.

2.1
1.1
-2.1
5.5
5.1
.8
-2.9
6. 5
3.2
1.5
5.3
3.9
3.6
3.7
6.0
2.2
3.4
2.7
6.1

EXPENDITURES FOR NEW PLANT AND EQUIPMENT
lie November survey of plant and equipment expenditures indicated that total outlays in 1964 will Be nearly''14
'Brcent above those in 1963. According to business plans reported in the survey, expenditures (seasonally adjusted)
i the first half of 1965 will run 8 percent above the 196-4 total.
' ""?-

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

•20

10

1959

1965

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

COUNCIL OF ECONOMIC ADVISERS

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

Period
953
_954
955
956
957
958
959
960
361
962
963 3
._
964
964: I
II
III 3
IV
365 • I 3 3
II
1

Total '
- ...

_

28. 32
26. 83
28. 70
35. 08
36. 96
30. 53
32. 54
35. 68
34. 37
37. 31
39.22
44. 66
42. 55
43. 50
45. 65
46. 70
47. 90
48. 70

Total
11. 91

11. 04
11. 44
14.95
15.96
11.43
12. 07
14.48
13. 68
14.68
15.69
18. 51
17.40
17. 80
18. 85
19.75
20. 40
20. 70

Durable Nonduragoods ble goods
5. 65
6. 26
5. 09
5. 95
5. 44
6. 00
7. 33
7. 62
7. 94
8. 02
5.47
5.96
5. 77
6. 29
7. 30
7. 18
6. 27
7. 40
7. 03 :
7. 65
7. 84
7. 85
9. 35
9. 16
8.85
8.55
8.80
9. 00
9. 60
9.20
9.95
9. 80
10. 25
10. 15

Excludes agriculture.
* Commercial and other includes trade, service, finance, communications, and
nstruction.
s Estimates based on anticipated capital expenditures as reported by business
November 1964. Includes adjustments when necessary for systematic tend.eies in anticipatory data.
NOTE.—Beginning 1959 all quarterly data are rounded to nearest $60 million.




Trans po rtation
Mining
Railroads Other

0.99

.98
.96

1.24
1. 24
. 94
. 99
.99
.98

1.08
1. 04
1. 18
1.15
1. 15
1. 20
1.25
1.25

1.31
. 85
. 92
1. 23
1. 40
.75
.92

1. 03
.67

. 85
1. 10
1. 46
1. 40
1.25
1. 50
1. 75
1.70

1.56
1.51
1. 60
1.71
1.77
1. 50
2. 02
1. 94
1. 85
2.07
1. 92
2. 31
2. 30
2.25
2.40
2. 30
2.35
27. 95

Public Commerutilities cial and
other 2

4.55
4. 22
4. 31
4. 90
6.20
6. 09
5. 67
5.68
5. 52
5.48
5.65
6. 14
5.95
6.30
6.30
6. 00
6. 40

8. 00
8. 23
9.47
11. 05
10. 40
9. 81
10.88
11.57
11. 68
13. 15
13. 82
15.06
14.30
14. 75
15.40
15. 55
15. 80

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

EMPLOYMENT, UNEMPLOYMENT, AND WAGES

STATUS OF THE LABOR FORCE

Total employment rose by 280,000 in January, on a seasonally adjusted basis.
tinued its rise with a gain of 308,000.

Nonagricultural employment con-

MILLIONS OF PERSONS*

MILLIONS OF PERSONS*
SEASONALLY ADJUSTED

75

TOTAL LABOR FORCED

CIVILIAN LABOR FORCE

75.

70

70.

65

TOTAL cmruwT/wciNi
IVJI/M. EMPLOYMENT

60

65

,,•»••§••>

60

NONAGRICULTURAL '
EMPLOYMENT

55

55

10

10
AGRICULTURAL EMPLOYMENT

UNEMPLOYMENT
i 1i i i i i I i i i i i
PERCENT OF CIVILIAN LABOR FORCE

uNt M>L DV M NT
- •-

-f -•

PERCENT OF CIVILIAN LABOR FORCE

sEA S<»A U1 AC Jl s

RA TE

...

9 59

n

r

--

-i

ED

-

-—

-

-

96D

19t»1

96 3

96 2

961

*14 YEARS OF AGE AND OVER,
SOURCE: DEPARTMENT OF LABOR

Period

I960—
1961...
19622..
1963...
1964...

1963:
Nov.
Dec.
1964:
Jan
Feb.
Mar.
Apr.
May,
June.
July.
Aug.
Sept.
Oct_.
Nov.
Deo.
1965:
Jan..
ings,

10




UnemployagnTotal
ment
cultural
Thousands of
66, 681 60, 958 3, 931
66, 796 61. 333 4,806
67, 846 62, 657 4,007
68, 809 63, 863 4, 166
70, 357 65, 596 3,876
Unadj usted
TvT n
JNon-

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

1965

COUNCIL OF ECONOMIC ADVISERS

Civilisin employ ment

Total
labor
force
(including
armed
forces)

r:- -,

:

Total
labor
force
(including
armed
forces)
Dersons 14
73, 126
74, 175
74, 681
75, 712
76, 971

Civiliiin emplo yment
Civilian
labor
force

Total

Agricultural

Nonagricultural

Unemp oyment
rate (pe rcent of
Unem- civilia Q labor
for ce)
ployment
Unad- Seasonjusted ally adjusted

years of age and o ver
70, 612 66, 681 5,723 60, 958
71, 603 66, 796 5,463 61, 333
71, 854 67, 846 5, 190 62, 657
72, 975 68, 809 4, 946 63, 863
74, 233 70, 357 4,761 65, 596
Seasonally adjustec 1

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

5. 6
6.7
5.6
5.7
5.2

Labor
force
participation
rate,
unadjusted '

Percent

58. 3
58.0
57.4
57.3
57.4

76, 000
75, 201

69, 325
68, 615

3, 936
3, 846

76, 282
76, ISO

73, 543
73, 380

69, 275
69, 333

4, 904
4, 884

64, 371
64, 449

4,268
4,047

5.4
5.3

5.8

57. 2
56. 5

74, 514
75, 259
75, 553
76, 544
77, 490
79, 389
78, 958
78, 509
76, 865
77, 112
76, 897
76, 567

67, 228 63, 234 4, 565
68, 002 64, 071 4, 524
68, 517 64, 500 4, 293
69, 877 65, 448 3, 921
71, 101 66, 094 3, 640
71, 953 66, 100 4,692
72, 405 66, 586 3,813
72, 104 66, 704 3,654
70, 805 65, 575 3,317
71, 123 65, 997 3,252
70, 793 66,248 3,373
70, 375 66, 590 3,466

76, S75
76, 551
76, 641
77, 252
77, 225
77, 049
76, 928
77, 006
77, OSS
76, 996
77, 140
77, 432

73, 654
73, 819
73, 798
74, 607
74, 477
74, 306
74, 188
74, 255
74, 280
74, 259
74, 409
74, 706

69, 668
69, 84%
69, 812
70, 486
70, 639
70, 346
70, 496
70, 458
70, 465
70, 379
70, 755
71, 004

4,883
4,791
4,637
4,791
4, 849
4,826
4,864
4,817
4,815
4,721
4,671
4,541

64, 686
65, 051
66, 175
65, 695
65, 790
65, 519
65, 6S2
65, 641
65, 660
65, 658
66, 084
66, 463

4,086
3,977
3,986
4,021
3,838
3,960
3,692
S, 797
3,815
3,880
3,654
3, 702

6. 4
6. 2
5. 9
5. 3
4.9
6. 1
5. 0
4. 8
4. 5
4. 4
4. 5
4.7

5.6

5. 4
6. 4
6. 4
6. S
5. S
5. 0
6. 1
5. 1
5. S
4. 9

5.0

55. 9
56. 4
56. 6
57. 3
57. 9
59.2
58.8
58. 4
57. 1
57. 2
57.0
56.7

75, 699

68, 996

77, 621

74, 914

71, 284

4,513

66, 771

3,630

5.5

4.8

55.9

r
, p. XIV.

64, 548
64, 576

65, 257

3,996

population.
See Emj-lmjment and Ea

6. 6

ELECTED MEASURES OF UNEMPLOYMENT AND PART-TIME EMPLOYMENT
he seasonally adjusted unemployment rate fell to 4.8 percent in January.

This is the lowest rate since October 1957.

4.0

2.0

2.0

1965

1959
SOURCE: DEPARTMENT OF IABOR

COUNCIL OF ECONOMIC ADVISERS

Uneniploymen t rate
(percen t of civiliiin labor
for ce in grou P)

Period

Labor
force
time lost
Experi- Married through
unemenced
All
men
ployment Over 40
workers wage and (wife and part- hours
salary
time
workers present)

160
>01

i(I2
'<>3
54

5. 6
6. 7
5. 6
5. 7
5.2

C4 : Jan
Feb
Mar
Apr
.May
.
June__ _ July__ --.
Aug
Sept , .
Got
Nov-Deo
r>5: Jan. _- .

5. 5
5. 4
5. 4
5.4
5.2
5.3
5.0
5. 1
5.1
5.2
4. 9
5.0
4.8

Per cent
5. 7
3. 7
6. 8
4. 6
5. 5
3. 6
3.4
5. 5
5.0
2.8
Seasonall y adjusted
5. 3
3.1
5. 2
3. 0
5. 2
2. 9
5.1
2.8
2. 6
4. 9
5. 3
2. 8
2. 7
4,8
4.9
2.6
4. 9
2. 8
2. 9
5. 0
4. 7
2. 4
4.5
2.6
4.5
2.7

6.7
8.0
6.7
J
6. 4
5.8

17, 664
18, 210
19, 025
19, 257
19, 294

6. 2
6.0
5.9
5. 9
5.7
6. 1
5.7
5.7
5. 7
5. 7
5.2
5.3
5.3

18, 337
18, 985
19, 466
20, 173
20, 450
19, 783
19, 195
19, 159
15, 079
20, 284
19,358
21,251
20, 264

Man-hours lost by tfce unemployed and those on part-time for economic
">ms as a percent of total man-hours potentially available to the civilian labor
•i1. Beginning 1963, series not strictly comparable with preceding data.
I 'ifTers from total nonagricultural employment (p. 13), which includes per•• with jobs but not at work tor such reasons as vacation, illness, bad weather,
I Industrial disputes.




ir
Persons at work in nonagri cultural 3 dustries
by hours worked f er week
Urider 35 hours
Part-ti me for
Part-time for
economi 2 reasons economi 3 reasons
35-40
Total
hours
Usually Usually Usually Usually
fullpartfullparttime 3
time 4
time 3
time*
Thousan ds of pers ons 14 ye irs of age and over
28, 724 11, 528
1,243
1, 317
29, 047 11, 132
1, 297
1, 516
28 853 11,675
1,049
1, 288
29, 422 11, 856
1,070
1,219
29, 127 13, 850
985
1, 151
TJnad juste i
Seasonally7 adjusted
1, 057
28, 842 13, 801
1, 015
981
1, 169
29, 968 13, 015
1, 036
1, 106
1, 064
1,177
1, 032
31, 090 11, 908
1, 049
994
1, 138
31, 279 11,885
1,053
1, 069
999
1, 168
31, 055 12, 283
931
1,137
945
1,204
30, 994 11, 320
1,088
1,431
1, 114
1, 148
29, 450 10, 476
878
1, 510
981
1,173
904
30, 053 10, 284
900
1,503
1,177
18, 907 28, 157
965
1, 056
953
1, 155
29, 065 13, 857
935
988
961
1,137
27,757 16,913
926
975
897
1,052
12, 298
1,021
968
31, 066
1,044
1,088
5
6
31, 166 11,681
1, 078
979
1,000
1,128

1
Includes persons who worked part-time because of slack work, material
shortages or repairs, new job started, or job terminated.
* Primarily includes persons who could find only part-time work.
•
8
Average hours worked; usually full-time, 23.0; usually part-time, 17-8.
i'
NOTE.—See Note, p. 10. Beginning 1960, data Include Alaska and HawaB.
Source: Department of Labor.
I |

UNEMPLOYMENT INSURANCE PROGRAMS
In January, insured unemployment under Sfafe programs averaged 399,000 less than in January 1964.
unemployment rate declined to 3.4 percent, seasonally adjusted.

MILLIONS OF PERSONS

The insured

MILLIONS OF PERSONS
WEEKLY INSURED UNEMPLOYMENT
(STATE PROGRAMS)

\

p965l

1964

JAN.

FEB.

MAR.

APRIL

MAY

JUNE

JULY

AUG.

SEPT.

•^SEE NOTE ! ON TABLE BELOW.
SOURCE: DEPARTMENT OF LABOR

Thou sands
2,994 4, 358. 2
46, 264
47, 766 2 1,924 3, 160. 0

1961
1962

48, 435
49,295
49, 309
-- .. . 47, 692
47, 677
48, 172
. 1 48, 844
1
49, 396
1
50, 146

1963
1964i
1963: Dec
1964: Jan—_
Feb
Mar
Apr
May . .
.
June
July
Aug
Sept

Oct

Nov
Dec.
1965: Jan 1
Week ended:
1965: Jan

COUNCIL OF ECONOMIC ADVISERS

A 11 progranis
Insured Total
unem- benefits
Covered
paid
ploy(milemploy- ment
lions
ment
(weekly
averof dollars)
age)

Period

._ . . ...

2
9
16.
23
30
Feb 6

1, 973 3, 025. 9
1, 753 2, 749. 2
2, 122
254. 5
2. 563
345. 6
2, 410
307. 9
2, 200
315. 6
1, 920
280. 9
1, 605
218. 3
1,448
199. 3
1,491
195. 6
1,396
180. 2
1,256
163. 7
1,264
157.8
162. 0
1,417
1, 792
230. 4
2, 135
283. 0
2,
2,
2,
2,
2,

146
165
145
122
111

St£ite

Insured
unemployment




Initial
claims

2,011
2, 024
2, 003
1,981
1, 972

392
442
352
326
291
320

progra ms

Insuret I unemploymen t as perExhaus- cent of covered
emplo yment
tions
Unad- Seasonjusted ally adjusted

Weekly iiverage, t lousands
46
350
2,290
32
302
1, 783
2
2
294
30
1, 806
26
1,605
268
1, 972
415
27
412
30
2, 395
291
31
2, 243
32
2, 050
259
34
2461,755
1, 447
31
218
1,297
218
27
282
24
1,343
212
23
1,260
21
194
1, 125
20
225
1, 138
20
276
1,293
22
1, 675
348
26
1, 996
355

J
Preliminary.
* Programs include Puerto Riean sugarcane workers for initial claims and
Insured unemployment beginning July 1963.

12

DEC

OCT.

Benefi ,s paid
Total Average
(milweekly
lions of
check
dollars) (dollars)

Per sent
5.6

4. 4
4.3
3. 8
4. 7
5.7
5. 3
4.9
4. 2
3. 4
3. 1
3. 1
2. 9
2.5
2. 6
3. 0
3.9
4.6

/ 0
4. a

4. s

4.0
S. 8
3. 8
S.6
S. 6
S. 6
3.6
S.4
3.4
3.4
S. 6
S.4

3, 422. 7
2, 675. 4
2, 774. 7
2,522. 1
233. 0
319. 3
283. 8
292. 6
258.0
201.5
183. 1
180. 5
164. 5
148. 4
143.2
147. 0
211. 4
260. 0

33. 80
34. 56
35. 27
35. 96
35. 78
36. 07
36. 24
36.26
36.02
35. 50
35.27
35. 35
35. 60
35. 40
35.92
36. 38
36. 81
37. 10

4.7
4. 7
4. 7
4. 6
4. 6

NOTE.—For definitions and coverage, see the 196$ Supplement to Economic
Indicators. Data for Alaska and Hawaii included for all periods and for Puerto
Rico since January 1961.
Source: Department of Labor.

\TONAGRICULTURAL EMPLOYMENT
.ed by employment gains of 81,000 in manufacturing and 75,000 in trade, nonagricultural payroll employment
ose by 93,000 in January.
MILLIONS OF WAGE
AND SALARY WORKERS (SEASONALLY ADJUSTED DATA)

MILLIONS OF WAGE
AND SALARY WORKERS (SEASONALLY ADJUSTED DATA)

64

20

MANUFACFURING

ALL NONAGRICULTURAL ESTABLISHMENTS

TOTAL
_———j—-^—•**•'*

62

60

58

•

56

•

DURABLE
GOODS
INDUSTRIES

M
1

r

v-

NONDURABLE GOODS INDUSTRIES

54

•»»

U l 1 I 1 1 1 (1 1 l t 1 ( II 1 1
l 1 t ( 1
1 i 11 I 1

52 -i i ' ' i i ' i ' ' ' I i > < ' < ' ' i ' ' ' i ' ' ' i i i ' i i ' i I ' ' ' • ' ' ' ' ' i i
1962

1963

1?65

1964

1962

K.M...I.MMII «M«"""»"""»imnm

1963

1964

1965

13.0

4.0

CONTRACI• CONSTRUCTION

WHOLESALE AND RETAIL TRADE

(ENLARGED SCALE)

3.5

(ENLARGED SCALE)

12.5

J

3.0

12.0

1

/

/•"

11.5

2.5
2.0 j i i i i i i i f , ,

1 ( I I 1 t I I I 1 1

1963

1962

1 I

1964

1 1 1 1 1 )

1 1 1

11.0

1?65

1962

1963

SOURCE- DEPARTMENT OF LABOR

1964

1965

COUNCIL OF KONOHIC ADVISESS

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

N onmanu 'acturing; (private

Manufao turing (iprivate)
Total

Period

'.158 2
!)59 2 __
1100 2
!>()!

2

!)62 2.
%3 2 _
%4 3

_
..

!Ki3: 2 Dec_
'.K>4: 2 Jan_
Feb.
Mar_
Apr_
May
June.
July.
Aug.
Sept
Oct.
Nov 3
Dec
'.Ki5: Jan »

51, 368
53, 297
54, 203
53, 989
55,
56,
58,
57,
57,
57,
57,
57,
57,
58,

515
643
178
291
334
684
754
827
931
104

58, 256

58, 301
58, 458
58, 382
58, 878
59, 187
59, 280

1

Total

15, 945

16, 675

16, 796
16, 326
16, 853
17, 005
17, 301
17, 115
17, 131
17, 171
17, 208
17, 224

17, 225
17, 285

17, 344

17, 339

17, 449
17, 171
17, 505
17, 608
17, 689

NonDurable durable
goods goods
8,830
9,373
9,459
9, 070
9,481
9, 625
9,848
9, 717
9, 725
9, 740
9, 784
9,798
9, 780
9,826
9, 890
9, 886
9,986
9, 702
9, 992
10, 074
10, 127

7, 116

7, 303
7, 336
7,256
7,372
7,380
7,454
7,398
7, 406
7,431

7, 424
7,426
7, 445
7,459
7, 454
7, 453

7, 463
7, 469

7,513
7, 534

7, 562

Total

27, 584
28, 539
29, 054

29, 069

29, 772
30, 439
31, 376
30, 839
30, 842
31, 145
31, 151
31, 166
31, 250
31, 349
31,461
31,491
31, 500
31,615
31, 713
31, 880
31, 884

C*t\n
won- Transtraet portation
Mining conand
struc- public
tion utilities
751 2,778 3,976
732 2,960 4,011
712 2,885 4, 004
672 2,816 3,903
650 2,902 3, 906
635 2,983 3,914
636 3, 105 3, 974
636 3,052 3,931
632 2, 941 3,936
633 3, 132 3,943
633 3,122 3, 940
633 3,081 3,964
631 3, 093 3,968
639 3, 106 3, 965
639 3, 107 3,983
634 3, 103 3,999
634 3,080 4,005
638 3, 106 3, 996
639 3, 162 3, 997
636 3, 247 4, 022
634 3,223 3, 939

includes all full- and part-time wage and salary workers in nonagricultural
i ithlishments who worked during or received pay for any part of the pay period
• I ing nearest the 15tb of the month. Excludes proprietors, self-employed per•!!:;, domestic servants, and personnel of the armed forces. Total derived from
• is table not comparable with estimates of nonagricultural employment of the
iii;m labor force, shown on p. 10, which include proprietors, self-employed
- r .itiis, and domestic servants: which fount persons as employed when they
*• not at work because of industrial disputes; and which are based on an enu-




Gover nment

vv noLe- Finance, Service
insursale
State
and
ance,
and
and
miscel- Federal local
and
retail
real laneous
triidc
estate
10, 750 2, 519 6 811 2,191
5, 648
11, 127 2, 594 7 115 2,233
5,850
11,391 2, 669 7 392 2,270
6,083
11, 337 2, 731 7 610 2,279
6,315
11, 566 2, 800 7 947 2,340
6,550
11, 803 2, 873 8 230 2,358
6,841
12, 184 2, 945 8 532 2,348
7, 153
11, 950 2,904 8 366 2,346
6,991
12, 021 2, 911 8 401 2,342
7,019
12, 083 2,917 8 437 2, 337
7,031
12, 077 2,924 8 455 2,337
7,058
12, 096 2,931 8 461 2,341
7,096
12, 135 2,934 8 489 2,339
7, 117
12, 187 2,943 8 509 2,323
7, 147
12, 223 2, 948 8 561 2,322
7, 129
12, 231 2, 951 8 573 2,328
7, 143
12, 229 2,960 8 592 2,320
7, 189
12, 278 2, 964 8 633 2,331
7,265
12, 311 2, 970 8 634 2, 354
7,306
12, 349 2, 977 8 649 2, 352
7, 347
12, 424 2, 980 8 684 2,339
7, 368

\Jtf U ^ l r t

meration of population, whereas the estimates in this table are based on reports
from employing establishments.
2
3 Series revised, see note, p. 14.
Preliminary.
NOTE.—Beginning 1959, data include Alaska and Hawaii.
Source: Department of Labor.

13

WEEKLY HOURS OF WORK - SELECTED INDUSTRIES
In January, the average workweek in manufacturing reached 41.4 hours, seasonally adjusted,
workweek in manufacturing since World War II.
HOI RS
46

PER WEEK

HOL RS
46

SEASONALLY ADJUST D)

DURABLE A/\ANUFACTUR ING

This is the longest

PER WEEK ( SEASONALLY ADJUST D)

NONDURA BLE MANUFA CTURING

44

44

Jt>

42

42

40

40

38

38

36

36

34

al

1 t 11 1 1 t 1 11

1 111 1 1 11 f 11

1962

42

I I ItI! i i i t i

1964

1963

t I I l t 1 r i ) I I.

34

~^^«--^~-< /~^H
**Vi

'

1 1 1 1 1 11 1 1 11

-J 1 1 1 1 1 1 1 1 t 1

1965

1963

1962

t M t 1 1 f 1 t 11

I 1 T1 1 M 1 1 1 ^

1964

1965

44

CONTRACT CONSTRUCnoN

RETAIL TR/vDE
42

40
38

40

7=^/
P^

.^Ay/W
xvyv-s X~^~-V't
h/

36

^\

38

34

•

"•"-"«—^

>

36

32

-i-V-iii

34

30 ^ > i i i i t i i i i
1962

i i i t r 1 t 1 1 l 1

1963

i i i i i ! i i t ii

1964

i iii iii i iii .
1965

32

J

, , , , 11 f T , ,

,,,,,!,,,,,

1963

1962

SOURCE: DEPARTMENT OF LABOR

,,,,,!,,,,,

1964

1965

COUNCIL C F ECONOMIC ADVISERS

[Average hours per week; * seasonally ad justed]

Mailufacturing Indus>tries
Period
1954____ . . .
.
.
.
1955..
1956.
_
1957.
1958_
1959
1960
1961—
. . .
1962
._
1963_
1964 2__ .
1963: Dec1964: Jan
Feb
Mar
_ _
Apr.
.
May
.
June
July
Aug
Sept
Got
Nov..
Dec 2
1965: Jan 2

Durable
goods

All

.

...

. .
— .
.

39. 6
40.7
40. 4
39. 8
39. 2
40. 3
39. 7
39. 8
40. 4
40.5
40.7
40.7

40. 2
40.7

40.6
40. 7
40.6
40. 6
40. 6
40. 8

40.5
40.5

40. 9
41. 2
41.4

1
Data relate to production workers or nonsupervisory employees. Data for
Alaska and Hawaii included beginning 1959.
3
Preliminary.

14




40. 1
41.3
41. 0
40. 3
39. 5
40.7
40. 1
40.3
40. 9
41.1

41.4
41.3
41. 1
41.3
41.2
41.4
41. 3
41. 4
41.3
41.5

41. 4
41.2
41.6
42. 0
42. 3

Nondurable
goods

39.0
39.9
39. 6
39. 2
38. 8
39. 7
39. 2
39. 3
39. 6
39. 6
39. 7
39.7
39. 1
39.8
39.7
39.8
39.7
39. 6
39. 5
39.7
39.4
39.9
40. 0
40. 0
40. 0

Contract construction

37. 2
37. 1
37. 5
37. 0
36. 8
37. 0
36. 7
36.9
37.0
37. 3
37. 1
37.4
35. 2
37.6
37.4
37. 2
37.3
37.3
36.8
37. 0
35.6
37. 1
37. 7
39.0
37.4

Retail trade

39.7
39.6
39. 1
38.7
38.7
38.7
38.5
38. 1
37.9
37.8
37.4
37.7
37.3
37.5
37.4
37.4
37.5
37.5
37.7
37. 5
37.3
37.5
37.3
37.2

NOTE.—Series revved. For details, see Employment and Earnings. December
'964.
Source: Department of Labor.

AVERAGE HOURLY AND WEEKLY EARNINGS - SELECTED INDUSTRIES
In January, weekly earnings For production workers in manufacturing averaged $5.22 above their January 1964 level.

DOLLARS

130

AVERAGE HOURLY EARNINGS

AVERAGE WEEKLY EARNINGS

120
DURABLE GOODS
INDUSTRIES

110

A/
•

«*
100

2.40

ALL MANUFACTURING
INDUSTRIES

2.20

90

NONDURABLE GOODS
INDUSTRIES

80
1962

1965

1962

1963

1964

SOURCE; DEPARTMENT OF LABOR

1965

COUNCIL OF ECONOMIC ADVISERS

[For production workers or nonsupervisory employees]
Aver ige weekl y earnings — current prices

Avera ge hourly earnings-— current prices
Period

1955
1956
1957
1958
1959
1960
1961
1962
1963 3

1964 _ _ _

1963: Dec—
1964: Jan...
Feb..
Mar_.

Apr__

May_.
June..
July__
Aug__
Sept..
Oct_.
Nov 3
Dec3 .
1965: Jan .

Manufs icturing iiidustries Contract
Retail
conNontrade
Durable durable strucAll
goods
tion
goods

1. 86
1. 95
2.05
2. 11
2. 19
2. 26
2. 32
2. 39
2.46
2.54
2. 51
2. 52
2.51
2. 51
2. 53
2. 53
2. 53
2. 53
2. 52
2. 57
2.53
2. 56
2. 58
2. 58

1

1. 99
2.08
2. 19
2. 26
2. 36
2. 43
2.49
2. 56
2.64
2.71
2. 69
2. 69
2. 69
2. 69
2.70
2.71
2. 71
2. 71
2.71
2. 75
2.70
2. 73
2. 76
2. 76

1.67
1.77
1. 85
1. 91
1.98
2. 05
2. 11
2. 17
2. 22
2.29
2.27
2. 28
2. 27
2. 27
2. 28
2. 29

2. 29

2.29
2. 29
2. 32
2. 30
2.31
2. 32
2. 33

2. 45
2. 57
2. 71
2. 82
2. 93
3.08
3. 20
3. 31
3.41
3.55
3.53
3. 57
3.53
3. 51
3. 52
3. 50
3.49
3. 53
3. 54
3.58
3. 61
3. 56
3. 62

1.34
1. 40
1.47
1. 52
1. 57
1. 62
1. 68
1.74
1. 80
1.87
1. 80
1.84
1. 85
1. 85
1.86
1.87
1.87
1.87
1.87
1. 89
1. 89
1.89
1.87

Manufsicturing iiidustries Contract
conNonDurable durable strucAll
tion
goods
goods
75.70
78.78
81. 59
82. 71
88.26
89.72
92. 34
96. 56
99.63
103. 38
102. 66
100. 30
101. 15
101. 40
102. 47
102. 97
103. 48
102. 97
103. 07
104. 60
102. 97
104. 70
106. 81
105. 52

Earnings in current prices, adjusted to exclude overtime and interindustry shifts.
• Earnings ill current prices divided by theconsumer price index on a 1964 base.
»Preliminary.




82. 19
85. 28
88. 26
89.27
96. 05
97. 44
100. 35
104. 70
108. 50
112. 19
111. 90
109. 21
110. 29
110. 29
111. 51
112. 47
113. 01
111. 92
112. 47

114. 13
111. 51
113. 57
116. 75
115. 37

66. 63
70. 09
72. 52
74. 11
78. 61
80.36
82. 92
85. 93
87.91
90. 91
90.57
88.24
89. 44
89. 67
89. 83
90.91
91.37
91. 14
91. 83
91. 87
92. 00
92. 17
93. 26
92. 27

90. 90
96. 38
100. 27
103. 78
108. 41
113. 04
118. 08
122. 47
127. 19
131.71
124. 61
121. 74
126. 37
128. 12
130. 24
132. 65
133. 32
134. 49
136. 64
131. 03
138. 62
131. 36
133. 22

Retail
trade

53. 06
54. 74
56. 89
58.82
60.76
62.37
64. 01
65. 95
68. 04
69. 94
68.40
68. 26
68. 82
68. 64
69. 19
69.75
70. 50
71. 62
71. 43
70. 50
70. 31
69. 74
70. 13

Manufac turin g
indust ries
Adjusted Average
weekly
earnings, earn1957-59= ings,
1964
100' prices 2
86.9 $87. 72
91. 5
89.93
96. 2
89. 96
88.74
100. 2
103.5
93.99
106.8
94.05
109. 8
95. 79
112. 5
99.04
115.4 100. 94
118.4 103. 38
117. 2 103. 18
117. 6 100. 70
117. 7 101. 66
117. 8 101. 81
118. 1 102. 78
118.2 103. 28
118. 3 103. 58
118. 3 102. 76
118. 3 102. 97
119. 3 104. 29
118. 6 102. 56
119. 2 104. 08
119. 7 106. 17

NOTE.—Series revised, see note p. 14. Beginning 1959, data include Alaska
and Hawaii.
Source: Department of Labor.

15

PRODUCTION AND BUSINESS ACTIVITY

INDUSTRIAL PRODUCTION

The industrial production index rose in January to a record 137.7 (1957-59=100, seasonally adjusted)—up % percent from December and 8 percent from January 1964. The over-the-month $ains were widely distributed among
most major components of the index.

lnde> , 1957-59=100 SEASONALLY ADJUSTED)

Inde)<, 1957-59 = 100

160

160

(SEASONALLY ADJUS TED)

UTILITIES A ND MINING

TOTAL
150

150

140

140

^s

130

_

120

.X

s»—

UTILIlPIES

s~^*\

Mir- ING
«••»«•—'"*

110

100

,,,,,!,,,,,

1963

1962

-•"

,,,,, ,

1 1 1 1 1 1 1 T 1 11

1964

100

1962

1965

**"•'
11 iii i
1963

,,,,,!,,,,,

150

150

140

*

f

NONDURA iLE
\

130

140

j-±J* •

FINAL PROD JCTS

^XsH
^_*~*'^"1
F * /
DURABLE

_^_

„,

120

.«\""TP

/"^

^*~-*

'f^^

t

"* MATERIALS

110

1 1111111111
1962

i i i i i Ii i i i i 1 1 , i , I i i 1 1 i i i i i i i i i i i t
1965
1964
1963

100

1 1 ! 1 r 1 t 1 1 11

1962

i iii' ' ' ' ' ''
1963

\

t 1 1 1 1 1 1 | 1 1

1964

[

1955
1956
1957
1958
1959
1960
1961
1962
1963___
1964 i
1963: Dec
1964: Jan
Feb
Mar
Apr

May

June
July
Aug
Sept
Oct . ..
Nov
Dec
Jan 1

' Preliminary.

1957-59 = 10 season ally
0,

_.

...

adjus tec ]

Market
Pi nal produ cts

Industry
M anufactur ing

Total
industrial
production

Period

i i i i i t i i 1 1i
1965

COUNCIL C F ECONOMIC ADVISER •

SOURCE: BOARD OF G<DVERNORS OF THE fiO ERAL RESERVE SYSTEM




^Ljf

\

130

110

1C

1965

MARKET C ROUPS

MANUFAC TURING

1965:

I I I t i 1 1 I 1 11

1964

160

160

100

'

120

110

120

*s

,

130

*^
-1

_

/^~+^
S ^"

./^

Total

96. 6
99. 9
100.7
93.7
105. 6
108. 7
109.7
118. 3
124.3
131. 9
127.0
127. 7
128.2
129.0
130. 5
131. 3
131. 6
132.9
133. 8
134. 0
131. 2
134.8
137. 0
137.7

97.3
100.2
100.8
93.2
106.0
108.9
109.6
118.7
124.9
132.8
127.9
128. 5
129. 1
129. 9
131. 4
132. 2
132. 4
133.9
134.5
134.9
131. 7
135. 8
138. 5
139. 1

NonDurable durable
101.9
104.0
104.0
90.3
105.6
108.5
107.0
117. 9
124. 5
133.2
127. 3
128.1
128.9
130.0
131. 6
132. 6
133.2
135. 0
135. 7
135. 2
129. 4
136. 5
140. 1
140. 8

91.6
95. 4
96.7
96.8
106. 5
109.5
112.9
119. 8
125.3
132.3
128.7
128.9
129.4
129.8
131. 1
131. 7
131. 5
132. 5

133. 1
134. 4
134, 5
134.9
136.4
137. 0

Mining Utilities

99. 2
104.8
104. 6
95.6
99. 7
101. 6
102. 6
105. 0
107.9
110. 9
107.3
108.8
108. 9
108. 8
109.9
111. 3
111. 4
110. 9
111. 9
111. 9
112. 0
112. 8
112. 0
112. 0

80.2
87.9
93.9
98. 1
108. 0
115. 6
122. 3
131.4
140. 0
150.0
143. 0
144.5
143.4
144. 8
147.5
148. 3
149.7
151. 4
154. 5
153. 2
153.8
152. 1
152. 0
153.0

Total

93. 9
98. 1
99.4
94.8
105.7
109. 9
111. 2
119. 7
124. 9
131. 5
128. 0
128.5
128. 1
128. 7
130.6
131.1
131.7
132.3
133. 3
132. 5
130. 3
134 6
137. 0
137. 5

Consumer
goods
93.3
95. 5
97. 0
96. 4
106. 6
111. 0
112.6
119.7
125. 2
131. 2
128. 0
128.9
128. 8
128.8
130. 8
131.0
131. 5
132. 1
133. 1
132. 0
129. 2
133. 6
136.8
137.2

Equipment

95. 0
103.7
104. 6
91.3
104. 1
107.6
108.3
119. 6
124.2
132. 1
128.1
127.9
127. 1
128. 8
130.7
131. 3
132. 0
132.7
133. 6
133.7
132. 6
136. 7
137. 6
138. 1

Source: Board of Governors of the Federal Reserve System.

Materials

99.0
101.6
101. 9
92. 7
105.4
107. 6
108.4
117.0
123. 7
132.4
125.9
126.7
128.1
129.3
130.6
131. 3
131.8
133. 6
134. 7
135. 6
132.2
135.4
136. 9
137.6

PRODUCTION OF SELECTED MANUFACTURES
Dufput of most durable and nondurable manufactures continued to rise in January, on a seasonally adjusted basis.
Transportation equipment showed the largest gain, followed closely by machinery and paper and printing.
Index, 1957-59 = 100 (SEASONALLY ADJUSTED)
180

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

160

TRANSPC RTATION
EQUIPM£NT\-X^
140

t

AAACHINE
f**^

120

120

*^/V
.-y,-1 /

X

-*/"~~

V

/7*1*v *\ y

>*

7

100

100

LUMBER AND 'RODUCTS

1962

1964

1963

,,,,,, i ii ii

,,,,,,,,,,,

,,,,,!,,,,,

1962

80
1965

1963

1964

,,,,,,
1965

160

180
160

140

CHEMICALS, PETROLEUM,
AND RUBBER

TEXTILES, APPAREL,
AND LEATHER

140

120

120

100

\
PAPERNAND
PRINTING
100

1962

1964

1963

1965

FOODS, BEVERAGES,
AND TOBACCO -

80 I I t I I I I t I I I
1962

M ' i I' ' ' t'

1964

1963

1965

COUNCIL OF ECONOMIC ADVISERS

SOURCE, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

[1957-59=100, seasonally adjusted]
Durab le manuf£ictures
Period

Primary
metals

955
956
957
958
359 _ - 360
961
362
363
364 '_.
)63: Dec
)64: Jan
Feb
Mar_._
Apr
May:

_
_
__ _

June

July
Aug
Sept
Got
Nov..
Dec
165: Jan L _..
• Preliminary.




.
- .
_..

118. 4
116. 4
112. 2
87. 5
100. 4
101. 3
98. 9
104. 6
113. 3
128. 1
110. 5
113. 6
117. 6
120. 9
123.8
127. 1
126. 1
131.2
132.8
132. 8
131. 8
134. 6
136. 7
137

No ndurable manufactu res

FabriTranspor- Lumber Textiles, Paper Chemicals, Foods,
Machin- tation
cated
and
and
apparel,
petrobeverery
equipprodmetal
and
print- leum, and ages, and
ment
ing
products
ucts
rubber tobacco
leather
98. 3
98. 8
101. 5
92. 9
105. 5
107. 6
106. 5
117. 1
123. 4
132. 6
126. 8
128.2
129. 0
129. 3
129. 5
130. 3
130.6
133. 3
134. 8
134. 3
130. 7
137. 0
139.4
140

96. 5
107. 1
104. 2
88. 8
107. 1
110. 8
110. 4
123. 5
129. 2
140. 9
133. 9
134. 7
133. 6
135. 9
137.5
138. 5
140. 1
141. 9
142.8
144. 1
144, 7
147. 0
148. 5
150

102. 0
97. 4
106. 4
89. 5
104. 0
108.2
103. 6
118. 3
127. 0
130. 7
131. 3
130.8
131. 1
130. 1
133. 0
134. 1
134.9
134. 3
135. 3
130. 9
105. 3
129. 2
140. 2
142

109. 5
105. 4
95. 9
95.6
108.5
102. 1
101. 3
106. 1
108. 9
113. 1
111.0
112.2
117. 3
116. 1
115. 4
114.9
109. 0
116. 1
114. 1
109. 7
110.8
109. 2
106. 7

95. 5
98. 0
96. 9
95. 0
108. 1
107. 5
108. 4
115. 1
118. 5
125. 0
121. 3
120. 7
122.4
121.7
121. 6
123. 5
122. 9
124. 9
126.0
126. 8
128.4
129.7
130.4
131

92. 5
97. 1
97.8
97. 0
105. 2
109. 0
112. 4
116. 7
120. 1
127. 5
123.9
123.4
124.5
125. 4
127. 5
128. 2
126. 6
128. 0
127.9
128. 2
129. 2
128. 2
131. 4
132

86.8
91. 4
95. 6
95. 5
108.9
113. 9
118.9
131.2
141. 8
151.9
146.3
146.4
146. 9
147.4
149. 5
150.0
152. 1
152. 3
153.6
156. 9
155.4
154. 8
156. 5
157

93. 1
96. 6
96. 7
99.4
103. 9
106. 6
110. 2
113. 3
116.8
120. 4
118. 8
120. 2
119. 5
120.2
121. 2
120.7
119. 5
120. 5
120. 5
120. 0
120.9
122. 7
123. 2
124

Source: Bo»rd of Governors o( the Federal Reserve System.

17

WEEKLY INDICATORS OF PRODUCTION
Most weekly indicators of production rose in January.
and cars and trucks increased sharply.

Steel output was the highest since early 1960.

Assemblies

MILLIONS OF SHORT TONS (oAHY AVERAGE)

MILLIONS OF TONS

BITUMINOUS COAL

STEEL
2.0

s

1964

|
\ 1964
j • "^"^

11965)
^ y
N

1.5

« ../• [ i
«

\

\

. />'

/^-.

/,/j"

j'"**'\j\

..-*. yr-,

vr.

: \-lS~"'

i! M

j i,'

s

' \
*

V

v

Vy

x •'/

S1

1963
1.0
t

t I

! I )

1 I ! I 1 1

f

" J

M

I II

I > I t

A

s

M

! <

I I I I I i 1 t

J

J

11 »

A

i I I i i 1

S

1

O

j

)

1

1

N

> t

! I I t

,
20.0

18.0

ELECTRIC POWER
llzaa!

/1

'\ ' \]J J-964
'\
/^'. ^
V

v

'4
A//1

V"\., ^-^7^ferf~Hn ^^H
" \

•

'..
..

M

1 1 , i i 1 1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 1 i .1 1 1 1 1 1 1 1 11 1 1 11
A

"'

;

I/

r^^

250

(rv,

/
/A
/

F

M

J

J

A S

; '•-.._ _

"

••

"

200

CARS AND TRUCKS

I . 0965]
r
1^
"~~\.

f

'-^
'•*-* —^'964
' ~*\^ '"" ^

f-----...----""'v""" \ / \T^

150 f
f

"'

' •"

\'

100

16.0

/I 1 1 1 1 1 1 1 1 , 1 1 1 T 1 1 1 1 1 ! 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 T 1 1 1 1 1 1 1 1 1 1 1 1 1

F

M

A

M

J

J

A S

O N D

0

Weekly average:
1958
1959
1960
1961
1962
1963
1964
1963: Dec
1964: Jan
Peb

Mar
Apr

May
June
July
Aug
Sept
Oct
Nov.
_ _
' Dec .
1965: Jan 2 _ _ _ _ _ _
Week ended:

1965: Jan 9

t

1 f

J

1 t

1 1 1 t

F

1 t

1 1 t t

M

1 1 f

A

I 1 1 f

M

t

1 1 I

1 1 1 1 1 1 1 1 1

J

J

A

1 1 t

t

!

S

f

t

O

t

I f I

N

I,M
D

COUNCIL OF ECONOMIC ADVISERS

.. _

1,635
1,792
1,899
1,880
1,886
2,096
2,428
1,980
2, 148
2,289
2,367
2,459
2,494
2,371
2,284
2, 371
2,490
2,608
2,629
2,624
2,669

87.8
96. 2
101. 9
100. 9
101. 2
112.5
130.3
106.3
115.3
122.8
127. 1
132.0
133. 9
127.3
122. 6
127.3
133.6
140.0
141. 1
140. 9
143. 3

12, 082
13, 297
14, 424
15, 139
16, 325
17, 490
18, 728
18, 792
18, 722
18, 668
18, 144
17, 770
17, 914
18, 948
19, 546
19, 470
18, 867
18,268
18,685
19, 536
20, 348

1,380
1,380
1,390
1,353
1,414
1,535
1,607
1,563
1,555
1,392
1,415
1,476
1,531
1,651
1,711
1,630
1, 757
1,684
1,736
1,609
1,527

2, 656
2, 670
2, 680
2,709
2,674
4
2, 676

142. 6
143.3
143. 9
145. 4
143. 5
143.6

20, 072
20, 435
20, 547
20, 336
20, 818

1,618
1,560
1, 534
1, 571
1,423

538
539
529
534
508

274
307
306
322
343
358
383
325
349
386
384
386
391
390
351
403
388
404
391
371
390

581
596
585
550
552
555
566
493
512
526
526
554
586
601
537
589
603
644
594
510
535

i Daily average. Includes data for Alaska.
* Preliminary.




'

j /

Electric
Bituminous Freight Paperboard
Steel pi•oduced
Car s and tnicks
power
coal mined
loaded
produced
Index
Thousands
distributed (thousands (thousands (thousands assemt led (tho usands)
of net
(1957-59= (millions of
of short
of cars)
of tons)
Total
Cars Trucks
tons
100)
kilowatt-hours) tons) "

Period

18

1

1

//

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

16
23
30
Feb 62
13'

]

\ * ' -'

50

' J

*

/
1
l

J

li

.A ;"-—.J963

/

/

/"/I

':

i
:

;

..../••.•'.
'"'
' v v '-—'i~

F 1

l\

1963

i i
i i

(X

1
!

/'"

i:

'•

O N D

THOUSANDS

BILLIONS OF KILOWATT HOURS

/

A 1 M IM 1 1 1 1 1I

D

"Covers period Jan. 1-9,1965.
1
Not charted.

3

98.4
129.5
151.8
127. 9
157. 5
175. 0
178.8
202. 0
189.9
201. 2
196.6
214.0
204. 9
213. 0
158. 8
64. 3
152.8
112. 1
189. 1
211. 5
243. 1

81. 6
107.6
128. 8
106. 1
133.4
146. 9
148.8
173.3
159.8
168.4
164. 0
178. 5
171. 6
177. 0
131.4
41.5
126. 6
93. 5
160.7
180. 7
206. 8

28. 5
30. 8
36. 3

340
406
406
406
402

247.9
243.4
246.0
235. 1
240. 3
238. 7

213.3
207. 1
209.4
197. 3
204. 8
205.0

34. 6
36.3
36. 5
37.8
35. 5
33. 8

16.8
21.9
23. 0
21. 8
24. 1
28. 1
30. 0
28. 7
30. 1
32.7
32.6
35. 5
33.4
36. 0
27. 5

22.9
26. 2
18. 5

Sources: American Iron and Steel Institute, Edison Electric Institute, Department of the Interior, Association of American Bailroads, National Paperboard
Association, and Ward's Automotive Eeports.

*EW CONSTRUCTION
Dutlays for new construction (seasonally adjusted) declined slightly in January, reflecting a reduction in expenditures
>y governments. Major categories of private construction remained unchanged or rose slightly.

BILL ONS OF DOLLARS

BILLIONS OF DOLLARS

80
SEASO •(ALLY ADJUSTED ANNUAL RATES

_

-

70

TOTAL NEVV CONSTRUCTICDN

-

^^>v^—V** "

\
*^

v^

_/*••»__
^m
•^ ^*-xx*w^-«*^

-^
^S^-

Art

-^
^
^
1

50

PRIVATE
*

^^

40

.."•"^

An

-

in

30
_

PUBLIC
-m"Vau"Vsu.

20

0*

!

1

1

!

1 1 !

I

I I 1 t

1

1

I 1

1

1

T 1 t I

1 1 1 11 It t t 1 t

20
*

1

T !

1 1 1 1

!

1 1 I

1

1 1

I

1

I

f

1 t

1

1

30
PRIVATE RESID NTIAL (NONFARM)

Tii i »»"' **""*"'"" *""MI ii.

""""""•"•

20

^_———1 1 1 1 111 1111

o<

\

„

^_——
_^^

T

f

1

1959

1

!

1

1

1 1

1 1

i r ! i t 1 i 1 i i i

1960

1961

^ ALL OTHE PRIVATE
*
i i i t t i i i i t t r t i i T1 1
1962
1963

Period

959
960
961
962

963
964

-

55.3
53.9

55. 4
59. 5
62. 5
66. 0

4

"

Mar
Apr_. _ _

May
June..
July
Aug — _
Sept
Oct
Nov 4
Dec
365: Jan "_

65. 2

64. 7
65. 5
66. 5
66. 6
65. 0

66. 6
66. 6
66. 0
66. 5
65.3
65. 6
66. 7
66. 1

20

in

0

1965

1?64

COUNCIL OF ECONOMIC ADVISERS

Pr .vate

Res: dential noiifarm

Total

Total '

39.2
38. 1
38.3
41.7
43.8
46. 0

45. 8

45. 4

46. 3
46. 9
46. 4
45.8
46. 0
46. 3
45. 9
45.9
45. 5
45. 5
45.7
45. 8

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

24. 3
21. 7
21.7

24. 3
25. 8
26. 6

CommerAdditions cial and
New
housing
and al- 2 industrial
units terations
Billions of dollars
4. 3
19. 2
16. 4
16. 2
18. 6
20. 1
20. 6

26. 9
26. 9
27. 6

28. 1
27. 5
26. 7
26. 6
26. 7
26. 3
26.0
25.7
25.6
25. 8
26. 0

21. 0
21. 0
21.7
22. 3
21. 6
20. 7
20.6
20. 7
20. 3
19. 9
19. 6
19.7
19.9
20. 1

not shown separately.
Compiled by F. W. Podge Corporation and relates to 48 States.
* Preliminary.




-

<

6. 0

7. 0
7. 5
7. 9
8. 2
9.0

Other

Constructioii contracts3
Federal, Total value Commercial and
(index,
industrial
and
1957-59 = floor space
local
100)
(millions of
square feet)

8. 9
9. 3
9. 2
9.5
9.8
10. 4

16. 1
15. 9
17. 1
17. 8
18. 7
20. 0

10. 2
10. 0
10. 1
10. 1
10.3
10.4
10. 6
10. 6
10. 4
10. 6
10.5
10. 4
10. 5
10. 5

19. 4
19. 2
19.3
19.6
20. 2
19. 2
20. 6
20.4
20. 1
20. 6
19. 8
20. 1
21. 0
20. 3

Sea sonally adjiisted annua I rates

963: Dec
964: .Jan.-. _ _
Feb

•

1 i 1 t

SOURCE, DEPARTMENT OF COMMERCE

Total new
construction
expenditures

—'

^

8.7
8.6
8.6

8.7
8. 6
8.7
8.8
8.9
9. 1
9. 3
9.3
9. 4
9. 4
9. 4

440
461
443
500
534
598
Seasonally
Seasonally adjusted
adjusted
annual
rates
530
148
105. 1
105.2
107. 6
119. 7
132. 0
137. 0

147
143
140
138

138
138
140
121
131
136
143
154

NOTE.—Data for Alaska and Hawaii included beginning January 1959.
Sources: Department of Commerce and F. W. Dodge Corporation.

620

630
578
658
555
579
643
556
605
658
587
686
-i Q

NEW HOUSING STARTS AND APPLICATIONS FOR FINANCING
Private nonfcrm housins starts declined 6% percent in December to a seasonally adjusted annual rate of nearly 1.5
million units; however, permits issued for new housing rose 12 percent.

MILLIONS OF UNITS
2.5

MILLIONS OF UNITS
2.5

PRIVATE NONFARM
HOUSING STARTS

1959

I960

1961

1962

1965

COUNCIL OF ECONOMIC ADVISERS

SOURCE, DEPARTMENT OF COMMERCE FEDERAL HOUSING ADMINISTRATION (FHA), VETERANS ADMINISTRATION [VA)

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

Period

1958
1959
1960
1961
1962
1963 s
1964

- 1, 553. 5
- 1, 296. 0
1, 365. 0
1, 492. 4
1, 640. 9
. 1,581.8

1963: Dec1964: Jan-.
FebMar,.
Apr..
May.
June.
July~
Aug..
Sept..
Oct..
Nov..
Deo s _
1965: Jan3.

97. 4
100. 8
101. 1
133. 3
152. 3
160. 5
164. 0
145. 1
144. 8
126. 0
143. 1
113.8
97.0
86.4

1, 516. 8
1, 252. 1
1, 313. 0
1, 462. 8
1, 609. 2
1, 549. 2

95.7
99. 6
100. 3
130. 1
148. 5
157. 5
158.5
142.7
141. 6
122.6
141.0
111.4
95.4
82.4

Hou sing star ts
Prhrate nonfarm
Total
private
Two or (includOnemore
ing
Total
family
famifarm)
lies
1, 314. 2
1, 494. 6 1, 211. 9 282. 7 1, 516. 8
1, 230. 1
972. 3 257. 8 1, 252. 1
1, 284. 8
946. 4 338.4 1, 313. 0
1, 439. 1
967. 8 471.3 1, 462. 8
993. 2 588. 5 1, 609. 2
1, 581. 7
1, 522. 2
945.9 571.0 1, 549. 2

93.4
98.3
97.7
128.3
145. 7
155.2
155. 8
140.4
139. 0
120.5
138.5
109.2
93.6
81. 2

48. 6
53.8
61. 1
80,4
87.8
98.9
99. 2
89.4
87.6
77.4
87.9
66.8
55.6

44.8

44.5

36.6
47.9
57. 9
56.3
56.6
51.0
51.4
43.1
50.6
40.5
34.6

1
Authorized by issuance of local building permit; in 10,000 permit-issuing
places prior to 1963, and 12,000 or more thereafter.
2
Units represented by mortgage applications lor new home construction.
' Preliminary.

20




1,570
1,718
1,657
1,663
1,531
1,529
1,611
1,505
1,430
1,457
1,591
1,455
1,596
1,487

Priv ate nonf arm
Total

Gover nment
home p rograms

FHA
VA
1, 314. 2 270.3 102. 1
1, 494. 6 307. 0 109. 3
1, 230. 1 225. 7
74. 6
1, 284. 8 198. 8
83. 3
1, 439. 1 197. 3
77. 8
71. 0
1, 581. 7 166. 2
1, 522. 2 154.0
59.2
Se asonally adjusted
1,524
157
73
1,688
158
75
192
1,613
83
1,638
68
165
146
60
1,501
1,507
174
61
1,585
152
60
1,483
145
56
1,408
142
52
1,433
52
136
1,559
50
146
1,429
152
57
1,559
151
53
1,457
69
153

Propos<sd home
consti uction
New
private
Applica- Requests
housing
units tions for for VA
FHA
authorappraisized ' commitals1
ments 2
234. 2
341.7
369.7
234. 0
1, 208. 3
242. 4
142. 9
998.0
1, 064. 2
243. 8
177.8
221. 1
171. 2
1, 186. 6
190.2
1, 334. 7
139. 3
182.1
1, 274. 3
113.6
annual ra tes
1,402
183
159
1, 333
178
138
1,404
193
135
1,377
190
124
190
1,280
111
173
1,271
99
1,306
177
103
1,242
162
109
176
1,281
88
1.222
174
121
1,220
183
112
1,258
194
118
1,173
193
118
184
1,317
113

NOTE.—Data include Alaska and Hawaii.
Sources: Department of Commerce, Federal Housing Administration (FHA)
and Veterans Administration (VA).

USINESS SALES AND INVENTORIES—Total and Trade
ccording to the advance report, retail sales (seasonally adjusted) in January were 6% percent above a year earlier,
it were 1.3 percent under December's total.
BILLIONS OF DOLLARS (SEASONALLY ADJUSTED!

BILLIONS OF DOLLARS (SEASONALLY ADJUSTED]

112

RETAIL TRADE (ENLARGED SCALE)

BUSINESS SALES AND INVENTORIES
16

108

INVENTORIES
104

14

100

12

96

DURABLE GOODS STORES

10

INVENTORIES
\

76
SALES-

8

f-J

72

SALES

6
68

4
64

18

- NONDURABLE GOODS STORES -

60
18

16

_ WHOLESALE TRADE
(ENLARGED SCALE)

INVENTORIES
INVENTORIES

14
/

16

SALES

12
14

10
12

0

0 T II I I II I I IiI II1 I Ii I t I I II II1 i Ii I t II I 1 I II I I II I I II I 1

1962

I

1963

1

1964

I

1965

1963

1962

1964

SOURCE DEPARTMENT OF COMMERCE

Total b usiness '

Period

Sales 2

1965

COUNCIL OF ECONOMIC ADVISERS

Inventories 3

Whol ssale *
Sales 2

Sales 2

Inventories s

Total

Re tail 6
Inventories 3

NonDurable durable
goods
goods
stores
stores

Total

Durable
goods
stores

Nondurable
goods
stores

Millions of dollars, seasonal!y adjustec1

1)57
55, 878 89, 052
54, 232 86, 922
!)58.
1)59
59, 583 91, 964
960
60, 530 94, 610
961
-.
60, 747 95, 576
!IG2
-_- -- --- 65, 078 100, 271
68, 002 105, 127
%3 6
(
72, 634 108, 756
)G4
!tG3: Nov
68, 338 104, 529
Deo.
70, 026 105, 127
(164: Jan. .
70, 992 105, 432
Feb ...
71, 013 105, 428
Mar _ _ .
70, 649 105, 721
Apr.
71, 787 106, 371
May
72, 660 106, 507
June
_ 72, 187 106, 621
July
73, 693 106, 634
Aug
.._ 73, 204 106, 716
Sept
73,358 107,323
Oct
72,131 107,365
Nov
73, 371 108, 112
Dec o
76, 108 108, 756
905: Jan « ..

10, 475
10, 257
11, 413
11, 440
11, 629
12, 158
12, 692
13, 719
12, 776
12, 986
13, 315
13, 245
13, 204
13, 228
13, 69T
13, 623
13, 795
13, 770
13,792
13,937
14, 196
14, 208

12, 730
12, 739
13, 952
13, 983
14, 251
14, 580
15, 597
16, 398
15, 495
15, 597
15, 818
15, 719
15, 734
15, 879
16, 053
16, 043
16, 017
15, 986
16,222
16,276
16, 384
16, 398

1
The terra "business" here includes wholesale, retail, and manufacturing trade
^epage 22).
• Monthly average for year and total for month.
s
Hook value, end of period, seasonally adjusted.
• Beginning 1961, data include Alaska and Hawaii.




6
6

16, 667
16, 696
17, 951
18, 294
18, 234
19, 613
20, 536
21, 791
20, 558
21, 019
21, 000
21, 533
21, 223
21, 392
21, 777
21, 773
21, 935
22, 266
22,254
21,383
21, 661
22, 667
22, 379

5,696
5,284
5,972
5,894
5,608
6,245
6, 675
7,085
6,734
6, 831
6,855
7,262
6,939
7, 010
7,218
7, 002
7, 060
7,324
7,541
6,496
6, 695
7,567
7, 537,

10, 971
11, 412
11, 979
12, 400
12, 626
13, 367
13, 861
14, 706
13, 824
14, 188
14, 145
14, 271
14, 284
14, 382
14, 559
14, 771
14, 875

14, 942

14,713
14,887
14, 966
15, 100
14, 842

24, 451
24, 113
25, 305
26, 813
26, 238
27, 938
29, 383
29, 594
29, 254
29, 383
29, 608
29, 586
29, 661
29, 961
29, 926
30, 180
30, 129
29, 967
30,082
29,312
29, 351
29, 594

11, 283
10, 526
11, 044
11, 951
11, 019
11, 728
12, 509
12, 169
12, 341
12, 509
12, 666
12, 708
12, 913
13, 045
13, 024
13, 079
12, 924
12, 762
12,867
12,076
12, 066
12, 169

13, 168
13, 587
14, 261
14, 862
15, 219
16, 210
16, 874
17, 425
16, 913
16, 874
16, 942
16, 878
16, 748
16, 916
16, 902
17, 101
17, 205
17, 205
17,215
17,236
17, 285
17, 425

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

21

MANUFACTURERS' SHIPMENTS, INVENTORIES, AND NEW ORDERS
In December, manufacturers' shipments and new orders each rose $1.7 billion (seasonally adjusted). Inventories
increased $400 million, a substantial rise though less than in the preceding 2 months. Advance reports indicate
shipments and new orders for durable goods registered smaller increases in January than in December.
BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)

BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)
70
MANUFACTURERS' INVENTORIES

MANUFACTURERS' SHIPMENTS
40

TOTAL
60

30

50
DURABLE GOODS

20
40

DURABLE GOODS

N.

MANUFACTURERS' NEW ORDERS
DURABLE GOODS

20

A

30

.„>»••""""" ' -f " /

NONDURABLE GOODS

,

NONDURABLE GOODS
«Jt..«
„..•""•'

10

1962

1963

1964

20

1965

...„...„„„,...-"'

1963

1962

Manufac turers' sh pments ' Manufaci urers' inventories 2
•

A

Total

1957
1958
1959
1960.
1961
1962
1963
_ _
1964<
1963: Dec. ....
1964: Jan
Feb..
Mar
Apr _
May
June
July . ..
Aug
Sept
Oct. ...
Nov
Deo 4
1965: Jan*
1
2
2

28, 736
27, 280
30, 219
30, 796
30, 884
33, 308
34, 774
37, 124
36, 021
36, 677
36, 235
36, 222
37, 167
37, 186
36, 791
37, 963
37, 168
37,312
36,811
37, 514
39, 233

NonDurable durable
goods
goods

15, 237
13, 572
15, 544
15, 817
15, 532
17, 184
18, 071
19, 232
18, 476
19, 144
19, 027
18, 887
19, 359
19, 138
19, 023
19, 861
19, 164
19,284
18, 633
19, 291
20, 558
20, 662

13, 499
13, 708
14,675
14, 979
15, 352
16, 124
16, 704
17, 892
17, 545
17, 533
17, 208
17, 335
17, 808
18, 048
17, 768
18, 102
18, 004
18,028
18, 178
18, 223
18, 675

Total

Millions
51, 871
50, 070
52, 707
53, 814
55, 087
57, 753
60, 147
62, 764
60, 147
60, 006
60, 123
60, 326
60, 531
60, 528
60, 398
60, 488
60, 763
61,019
61, 777
62, 377
62, 764

NonDurable durable
goods
goods
of dollars
31, 728
30, 095
31, 839
32, 360
32, 646
34, 326
36, 028
38, 311
36, 028
35, 970
35, 960
36, 079
36, 277
36, 300
36, 492
36, 597
36, 790
37,037
37, 517
38, 040
38, 311

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

22




1964

1965

COUNCtL OF ECONOMIC ADVISERS

SOURCE, DEPARTMENT OF COMMERCE

Ma nufacture rs' new orde rs '
Durat le goods
Total

Total

seasonal y ad juste d
20, 143 27, 514 14, 073
19, 975 26, 901 13, 170
20, 868 30, 679 15, 951
21, 454 30, 115 15, 223
22, 441 31, 061 15, 664
23, 427 33, 167 17, 085
24, 119 35, 036 18, 300
24, 453 37, 682 19, 797
24, 119 35, 619 17, 974
24, 036 37, 148 19, 740
24, 163 36, 657 19, 499
24, 247 36, 547 19, 262
24, 254 38, 184 20, 461
24, 228 37, 893 19, 945
23, 906 37, 782 20, 016
23, 891 39, 315 21, 254
23, 973 37, 509 19, 342
23,982 38,018 19,907
24, 260 37, 846 19, 623
24, 337 37, 720 19, 454
24, 453 39, 418 20, 672
20, 939
4

Preliminary; January not charted.
Source: Department of Commerce.

NonMachinery durable
and
goods
equipment
2, 566
2, 354
2,878
2,791
2,854
3,090
3,326
3,700
3, 612
3,617
3,413
3,455
3,610
3,929
3,916
3,774
3,772
3,686
3,786
3, 882
3,857
3, 896

13, 441
13, 731
14, 728
14, 892
15, 397
16, 082
16, 736
17, 886
17, 645
17, 408
17, 158
17, 285
17,723
17, 948
17, 766
18, 061
18, 167
18,111
18, 223
18, 266
18, 746

Manufacturers'
toryshipratio 3

1.80
1. 84
1.70
1.76
1. 74
1. 70
1. 69
1. 64
1. 67
1. 64
1. 66
1. 67
1. 63
1. 63
1. 64
1. 59
1. 63
1. 64
1.68
1. 66
1. 60

MERCHANDISE EXPORTS AND IMPORTS
I he trade surplus increased nearly $300 million in December, as exports rose sharply to a record level—partially in
Anticipation of the then threatening dock strike. For the year as a whole, exports were up 14 percent and imports
'> percent, bringing our export surplus to nearly $7 billion or 31 percent above 1963.

BILLIONS OF DOLLARS
3.0

BILLIONS OF DOLLARS
3.0

1.0

jySEE NOTE! BELOW.
SOURCE. DEPARTMENT OF COMMERCE

COUNCIt OF ECONOMIC ADVISERS

[Millions of dollars]

Merchandi se expo rts
M erchandi se imports
Total ( includGener al 2i ra]Domest c expor ts
Impo rts for consum ption 3
ing ree?cports)1
poi ts
Period
Indus- Finished
Indus- Finished
Season- Unad- Total ' Food- trial
manu- Season^ Unad- Total1 Food- trial manually ad- justed
facally adstuffs matestuffs matefacjusted
tures ' justed justed
rials
tures
rials
Monthly average :
872
1957
1,625 1, 611
208
530
1,105 1, 102
534
274
294
784
1958
1,364 1, 351
198
368
1,105 1, 101
326
288
489
776
1959.
1, 366 1,352
1, 302 1,284
210
366
285
569
431
877
19601, 251 1,251
274
1, 633 1,617
230
510
539
438
254
1961
919
1,679 1,659
486
1, 226 1,221
277
522
423
1962
1,002
1, 745 1, 723
440
281
1, 366 1,354
297
496
561
1963
1,869 1,845
314
494
1,031
1,428 1,417
310
574
532
1964
1,150
2,135 2, 106
348
566
316
1,557 1,550
615
605
U nadjust ed
U aadjust ed
1963: Nov—
1,074 1, 466 1,425 1,422
1 966 2,041 2, 016
574
538
363
316
567
Dec_ . % 091 2,147 2,123
364
1, 122 1,480 1, 530 1,510
588
356
599
554
1964: Jan_ ... 2 043 2,035 2, 008
355
554
1,095 1,434 1,444 1,463
294
617
553
Peb_ . 2 046 2,006 1,977
1,092 1,460 1,337 1,321
347
534
267
494
561
Mar
2 074 2, 140 2, 112
364
550
1, 193 1,520 1,590 1,565
601
353
613
Apr
8 061 2, 138 2, 102
367
1, 186 1,541 1,561 1,554
540
342
611
603
May
2 068 2,221 2, 190
378
562
1,243 1,539 1,456 1,432
297
581
556
June
& OS4 2, 047 2,016
308
557
1,143 1,518 1,594 1,575
303
642
632
July
294
1,134 1,578 1,611 1,613
2 12S 2,046 2,020
592
294
659
662
Aug
2 109 1, 900 1,871
308
515
1,045 1,576 1,491 1,490
280
625
585
1, 141 1,546 1,562 1,568
Sept
2 SS5 2,085 2,058
348
569
320
614
634
1,221 1,548 1,613 1,644
2 IBS 2,259 2,230
367
Oct
638
351
628
665
1,154 1,698 1,672 1,655
Nov_390
2 197 2, 183 2, 158
615
379
620
656
Dec_ ... 2 430 2, 561 2,526
1, 389 1, 642 1,755 1,720
399
738
366
684
671
' Total exports less Department of Defense shipments of grant-aid military
supplies and equipment under the Military Assistance Program.
' Imports for immediate consumption plus entries into bonded warehouses.
» Imports for immediate consumption plus withdrawals for consumption from
V.....1...* ,.,n,^i,n,,oM




Merchantrade
surplus,
seasonally adjusted

< Data through 1960 have been adjusted to include imports of uranium
_ . .
,
. ,,
.
„
NOTE.— Series have been revised beginning 1963. Because of revisions
series, subgroups do not include all data in totals.
Source: Department of Commerce.
XT

520
259
64
382
453
379
440
578
500
611
608
586
654
520
522
516
645
5S4
689
607
499
788
ore.
made
nn
«<3

U.S. EXPORTS AND IMPORTS OF GOODS AND SERVICES
The surplus on goods and services rose $2.4 billion, or 43 percent, in 1964 to over $8 billion—more than twice the
1960 level and well above any year since the immediate post-World War II period. In the fourth quarter alone this
balance improved 6.5 percent as exports continued to rise more rapidly than imports.

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

10

10

J959

1965

1962

SOURCEi DEPARTMENT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS

[Millions of dollars]
Impor ;s of good s and sennces
Ex ports o goods smd ser\'ices
Incorrle on
Addendum :
investinents
MiliGoods and
tary
services
MerOther
Mer- MiliOther
Total
chan- expend- servchanGov- servfinanced
tary
Pri1
1
ices
itures
dise
vate
ernices
by Govt.
dise
sales
ment
grants and
capital
20, 752 13, 291
3,216 4,245
19, 390
205 3,899
375 2,612
(2)
16, 264
307 3,658
20, 861 12, 952
3, 435 4,474
300 2,538
(2)
2
23, 342 15, 310
3, 107 4,925
16, 282
302 2, 694
349 3, 849
()
349 3,990
3,048 5,422
19, 459
2,239 23, 193 14, 723
335 2,911
2,954 5,401
402 3,464
380 4,279
2,687 22, 852 14, 497
19, 913
3,044 5, 843
471 4, 531
2,908 25, 021 16, 134
20, 576
656 3,850
498 4,905
2, 897 6, 442
21, 989
659 3, 969
3,338 26, 335 16, 996
25, 144
28, 355 18, 633
Seaso nally ad; usted annua [ rates
2, 844 6, 616
22, 440
468 3, 852
500 4, 888
3,044 26, 932 17, 472
2, 832 6, 628
23, 668
620 4,004
504 5,088
3,304 26, 976 17, 516
24, 432
524 5,288
3,048 27, 172 17, 644
2,868 6,660
840 4,900
24, 212
2,912 6,816
604 4,776
528 5,304
3,540 28, 128 18, 400
532 5,304
3,500 28, 724 18, 908
2,736 7,080
25, 456
716 4,656
29, 396 19, 508
26, 476
;

Period

1957

1958
1959
1960.
1961.

1962.
1963 3
1964

1963: III
IV
1964: I_.
II
III3
IV
1

Total

26, 481

23, 067
23, 476
. 27, 044
28, 438
... 30, 084
32, 020
36, 482
32, 148
33, 884
35, 984
35, 424
36, 664
37, 856

Adjusted from customs data for differences In timing and coverage.
2 Not available.

24




•3 Preliminary,
Source: Department of Commerce.

Balance

5,729
2,206
134
3,851
5,586
5,063
5,685
8,127
5,216

6,908
8,812
7,296
7,940
8,460

r.S. BALANCE OF INTERNATIONAL PAYMENTS
ie U.S. deficit on regular transactions rose abruptly in the fourth quarter, on a seasonally adjusted basis. Factors
ore than offsetting the gains on goods and services included a substantial increase in private capital outflows and
irger net payments on the Government capital account. For the full year, however, the deficit was reduced $0.3
illion—to the lowest level since 1957—and the gold drain was held to $125 million.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

20

20
SEASONALLY ADJUSTED ANNUAL RATES

BALANCE ON GOODS AND SERVICES

\

-10

-10

-20

-20

I

to

!

!

.., I

I. ...I

I , ..I

L_J

>EFICIT (-)]

BALANCE ON REGULAR TRANSACT ONS [SURPLUS OR I

-

uU

uuu ULJU ^ULJI | u^uy
1 1 'j

1

-10

1

1

!

1959

1

!

1960

i i i

!

1

1

y y u u ^UUH
_~
.

I

1962

1961

I
1963

i i i

I

1964

. 1 1

1

I

-10

1965

COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF COMMERCE

[Millions of dollars]
U.S. private oapi fcal, net

Period

U.S.
Government
grants
and

capital,
net i

Direct
investment

-2, 574 -2, 442
1957
-2, 587 — 1, 181
1958
1959 ___ -2, 421 — 1,372
1, 674
2, 781
I960
-3,396 — 1, 599
1961
1962
-3, 547 -1, 654
1963
—3, 785 — 1,888

Longterm
portfolio 2

-859
— 1, 444

Shortterm

276

-311

-77
— 926
-863 — 1, 348
-1,025 — 1, 556
-1,227
— 553
-734
— 1, 685

Foreign
capital,
net 3

487
22

863
341
622
162

311

1964 <L -

Balance Selected
on
special
unre- regular Government
corded trans- 4
trans- actions
transactionss
actions
Errors
and

1, 157
520
488 -3, 529
412 -4, 178
— 772 -3,918
-998 -3, 071
— 1, 111 -3, 605
— 339 -3, 261
-3, 006

435
37
701
1,402
617

243

S«;asonally iidjusted a nnual rat es
460 — 1,068 -1,516
-940 -1,212
16
III, - -3, 164
IV
-188
228 -1, 592
— 848
-3, 700 -2, 232 -952

226
264

-680
-984
-216 -2,532
-704 -2,720
-5,788

148
-39
4
130

1964:
I ... -3, 092 -2, 084 -888 -2, 368
II
— 3,756 -2,284 — 1, 112 -2, 148
III
-3,560 -2, 076 -2,364 — 1,736

rv _.

1
Includes
1
Includes
8

104
520
636

associated Govt. liabilities and scheduled loan repayments.
banking claims.
Other than liquid funds; includes miscellaneous Govt. nonliquid liabilities.
* Includes balance on goods and services (page 24) as well as net pensions and
remittance payments ($826 million in 1963).
* Includes official debt prepayment, advances on military exports, and net
sales of those nonmarketable, medium-term, rionconvertible securities not
included under foreign capital.
6
Includes short-term official and banking liabilities and foreign holdings of
TT n /--,—*. i^v,^^ ««a r,rttoc /nfhor thtm nnnmfl,rtf>t,ablft, nonconvertible).




Chang es in selec ted liabilities (decrease (-))"
To f oreig;n official
hold
Special
To
nonother
marketforeign B
able, con- Other holders
vertible
bonds
and notes
20
625
735
502
1, 248
1, 460
1,449
289
681
1,083
457
213
702
594
970
375
2,1217
Quarterly , totals uiladj usted
175
145
47
25
126
6
122

203
50

-399
92
181

233
109
558

Changes
in gold,
convertible
currencies, and
IMF
gold
tranche
position
(increase
(-))
— 1, 165
2,292
1,035
2, 143
606
1, 533
378
171
227

• o

-51
303
70
10
-151

1, 4[43
CentraJ banks and governments.
Private holders; includes banks and international and regional organizations.
Excludes liabilities to IMF relevant to U.S. gold tranche position.
B
Preliminary.
1° Total at end of fourth quarter was $15,903 million, of which $15,471 million
was U.S. gold stock. The decrease in gold stock during quarter was $172 million.
NOTE.—Data exclude military grant aid and U.S. subscriptions to IMF.
Source: Department of Commerce.
25
7
8

PRICES

CONSUMER PRICES

The over-all index of consumer prices rose by 0.1 percent in December 1964. Prices of food, other nondurable commodities, and services increased slightly while durable commodity prices declined a little. The over-all index was
1.1 percent above the December 1963 level.

Index, 1957-59=100
120

100

95 U

95

1959

1964

1965

JL/SEE NOTE BEUOlf.
COUNCIt OF ECONOMIC ADVISERS

SOURCE DEPARTMENT OF IABOR

119 57-59 = 1 DO]

Period

All
items

1954
_
_
1955
1956
1957
_
.
1958.
1959
1960
1961
1962
1963
1964_
1963: Nov
—
Deo
1964: Jan (new series) '
Feb.
1
Mar
..
Apr
May .
. . . ..
June. .
July
Aug
Sept
Oct
Nov
....

93. 6
93. 3
94. 7
98. 0
100. 7
101. 5
103. 1

Dec

1

104.2
105. 4
106. 7
108.1

107. 4
107. 6
107. 7
107. 6
107. 7
107. 8
107.8
108.0
108.3
108.2
108.4
108.5
108. 7
108. 8

All commodities
95. 5
94. 6
95. 5
98. 5
100.8
100. 9
101.7
102. 3
103. 2
104. 1
105.2
104. 7
104.9
104.9
104.8
104.8
104. 9
104. 8
105. 0
105. 3
105.2
105. 4
105.5
105. 6
105.7

Co mmoditie.3
Services
Comm odities les!S food
Services
All
Food
Rent
less
NonDurable durable services
All
rent

95. 4
94. 0
94, 7
97. 8
101. 9
100. 3
101. 4
102. 6

105. 1
106. 4
105. 1
105.4
105. 8
106. 0
105. 7
105.7
105. 5
106. 2
107. 2
106. 9
107. 2
106. 9
106. 8
106. 9

See note.
NOTE.— Prior to January 1964, Indexes revis ed to reflect transfer of ho m«ownership from services to durable commodities

26




103. 6

95. 6
94. 9
95. 9
98. 8
99. 9
101. 2
101.7
102.0
102.8
103. 5
104. 4
104. 5
104. 5
104.3
104. 1
104.3
104. 3
104. 3
104.3
104. 3
104.2
104 3
104. 6
104.8
104.9

97. 1
95. 3
95. 4

98. 5
100. 0
101. 5
100. 9
100.8
101.8
102.1
103.0
103. 1
103.0
102.9
102.9
102.9
102. 9
102. 8
102. 9
102.9
102.8
102.8
103. 1
103.5
103.4

94 4
94 4
96. 5
99. 1
99. 8
101. 0
102. 6
103. 2
103. S
104. 8
105.7
105.8
105. 9
105.6
105.3
105.6
105. 6
105.7
105. 6
105. 6
105. 6
105. 8
106.0
106. 1
106. 3

88. 7
90. 5
92.8
96.6

100. 3
103. 2
106.6
108. 8
110.9
113. 0
115. 2
113. 9
114. 1
114. 2
114.3
114. 5
114.8
114. 9
115. 1
115.3
115. 4
115. 5
115. 7
116.0
116. 2

93. 5
948

96. 5
98. 3
100. 1
101. 6
103. 1
104 4
105. 7
106.8
107.8
107.2
107. 3
107.3
107.5
107. 5
107. 7
107. 7
107. 8
107.8
107. 9
107. 9
108. 2
108.3
108.4

87.4
89. 4
91. 9
96. 1
100. 2
103. 6
107. 4
110. 0
112.1
114 5
117. 0
115. 5
115.8
116.0
116.0
116.3
116. 5
116. 6
116. 8
117.0
117.2
117.4
117.6
117.9
118.2

Be ginning with January 19{A, new indej with revise d weights, c(>verage, and
samp line procediires. For d Jtails, see D epartment o f Labor release, Major
Chan ses intht Co fiswntr Price Index, March 3, 1964.
Soiirce: Depart ment of Lab 3r.

WHOLESALE PRICES
ie over-all index of wholesale prices rose by 0.3 percent in January. Prices of industrial commodities were up
1 percent while farm product prices rose by 0.3 percent and food prices by 1.4 percent.

Index, 1957-59=100

Index, 1957-59 = 100

115

115

110

110

PROCESSED FOODS
\

COMMODITIES OTHER THAN FARM
PRODUCTS AND FOODS
(INDUSTRIALS)

105

105

\,

/

-£=!•
100

\

V

\

I

100

v

ALL COMMODITIES
95

95
FARM PRODUCTS

90

90

1959

1962

1963

1964

1965
COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF UBOR

[1957-59=100]

All
commodities

Period
957
958
959
960
961
962
963
9643
963: Nov...
Dec
964: Jan
Feb

Mar__

Apr

_. ._
..
May._
._
June
__
July
Aug
Sept..
Got
Nov._
Deo
_ _
!)05: Jan 3
__
Vcek ended : *
1965: Peb 2
9 ..1

_ __

Farm
products

Processed
foods

99. 0
100. 4
100. 6
100. 7
100. 3
100. 6
100. 3
100. 5
100. 7
100. 3
101. 0
100. 5
100.4
100.3
100. 1
100.0
100.4
100. 3
100.7
100. 8
100. 7
100. 7
101.0

99.2
103. 6
97. 2
96. 9
96. 0
97.7
95.7
94. 3
96. 2
93. 3
96. 3
94.5
95. 2
94.4
93. 7
93.2
94. 1
93.6
95. 7
93. 8
94. 0
92. 7
93.0

97. 9
102. 9
99. 2
100. 0
100. 7
101. 2
101. 1
101. 0
102. 5
100. 4
102. 5
100.9
100. 5
100.4
99. 4
100. 2
101.2
101. 0
102. 2
101. 7
100. 9
100. 8
102.2

101.1
101.2

94. 1
94.6

102.3
102.3

Coverage of the subgroups does not correspond exactly to coverage of this

nlcs.

• ICxcJudes intermediate materials for food manufacturing and manufactured
nlmal feeds; includes, in part, grain products for further processing.




Commodi ies other t tian farm jroducts a ad foods (iiidustrials)
Consunaer finIndus- Indus- Producished g(jods exAll intrial in- er fintrial
cludin g food
dustricrude termediNonals1
mate- ate ma- goods
Durterials *
rials
able
durable
99. 2
100. 9
99. 6
97. 7
98. 7
99. 9
99. 5
96. 9
99. 4
100. 2
100. 1
99. 3
101. 3
102. 3
101. 0
102. 1
101. 3
100. 8
101.3
101. 4
102. 3
98. 3
100.9
101. 5
100.8
102. 5
97. 2
100. 1
100. 5
101. 5
100. 8
95. 6
99. 9
102.9
100. 0
101. 6
100.7
94. 3
99. 6
103. 1
99. 5
101.9
101. 2
100. 2
104. 1
97. 1
101. 6
99.9
100.9
94. 5
99. 9
103. 4
99. 6
101.7
101. 2
94. 5
100. 1
103.6
99. 5
102. 2
101. 3
94.9
100. 1
103. 5
99. 5
102.4
101.2
94.9
100. 2
103. 7
102. 1
99. 6
101. 1
95.2
100. 2
103. 8
99.6
101.5
101. 1
96. 2
100. 2
103.9
99. 7
101. 1
101. 1
95. 0
100. 1
104. 3
100. 1
101. 3
100. 9
95.9
99. 9
104.1
100.0
101.2
101. 1
96. 6
100. 0
104. 3
100. 1
101. 5
101. 1
100. 0
98.3
104.3
99.9
101.4
101. 1
99. 9
104. 2
98. 1
99. 9
101. 0
101. 5
99. 1
100. 4
104. 3
100. 0
101. 6
101. 6
99. 8
100. 5
104.6
99. 9
101. 9
101. 8
100.6
104. 5
100.6
99. 9
102. 1
101.9
99.2
100.8
104.8
99.8
102.4

101.9
101.9

a
4

Preliminary.
Weekly series based on smaller sample than monthly series.
Source: Department cf Later.

21

PRICES RECEIVED AND PAID BY FARMERS
During the month ended January 15, prices received and prices paid by farmers were both up 1 percent from rfieir
levels in November. The parity ratio dropped 1 point.
Index, 1957-59 = 100

Index, 1957-59=100
PRICES PAID,

! NTERE5T, TAXES, ANC>

110

110

WAGE RATES

_,--•>___

«
.

_,.

100

/Xs/

\

\S~

\

^

"~

'

PRICES RECEIVED

( ML FARM PRODUCTS )

90

r i 1 1 1 1 1 1 ! 1 1

1 1 1 1 1 1 T M

1 1

i i i i i 1 i.i i i i

i ii iiI ii i t t

90

T 1 1 1 ! 1 f I 1 11

I

1

1

t

1

I

I

t

1 1 1

I I I I I 1 1 i 1 II

an

RATIO^
100

1959
J/RATIO OF INDEX OF PRICES RECEIVED TO INDEX OF PRICES PAID,
INTEREST, TAXES, AND WAGE RATES, ON 1910-14 = 100 BASE.
SOURC6 DEPARTMENT OF AGRICULTURE

COUNCIL Of ECONOMIC ADVISERS

Prices I•eceived by :armers
Period

1955
1956
--.
1957
1958
1959
1960
1961—
1962
1963
1964
._
1963: Dec 15.
1964: Jan 15._
Feb 15
Mar 15.
Apr 15
May 15
June 15.... ...
July 15
.
Aug 15
Sept 15—
Got 15
Nov 15
Deo 15
1965: Jan 15 __

All farm
products

_.
...—

—

_

_ ,

Crops

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

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

28




70

1965

104
105
101
100
99
99
102
104

106
106
108
109
109
108
109
111
108
105
101
102
104
104
105
105

Price,3 paid by fa rmers

Livestock All items,
interest,
and
taxes, and
products wage rates
Index, 195 7-59 = 100
94
90
88
95
94
98
106
100
102
100
102
98
103
98
105
99
106
95
91
107
106
91
94
107
92
107
92
107
107
89
107
87
107
87
107
91
92
107
107
95
107
93
92
107
91
107
92
108

Family
living
items
95
96
99
100
101
102
102
103
104
105
104
104
105
104
105
105
105
105
105
105
105
105
105
106

Source: Department of Agriculture.

Production
items
96
95
98
100
102
101
101
103
104
103
103
104
103
104
104
103
103
103
103
103
103
103
103
104

Parity
ratio '

84
83
82
85
81
80
79
79
78
75
76
78
77
76
75
75
74
75
74
75
76
75
75
74

MONEY, CREDIT, AND SECURITY MARKETS
MONEY SUPPLY

In January, the daily average money supply rose by $0,4 billion (seasonally adjusted), in line with its average during
1964. Time deposits rose by $2.4 billion or somewhat faster than the average monthly increase in 1964.

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

AVERAGES OF DAILY FIGURES, SEASONAJ.LY ADJUSTED

-

160

.

MONEY SUPPLY

_ \ __.

_

-— •

,

,

'

"
I

160

^^^
-

——

,

120

120

-

-

„,*
.. *
TIME C EPOSITS AT ALL

COM AERCIAL

-

BANKS

-

." "
' * *

80

80
•.-•""'"'*
--*-""

40

40

<
l l t 1 r Il l i ii

r i i t i 1 i i i tT

1959

1960

i t l t i ! 1 I 111

1 t ! 1 1 t t I 1 1 t

!

! 1 1 1 I 1 1 I 1 f

1962

1961

1963

1 1 t 11 ! l 1I I 1

r i i t i I s Ti i t

1964

1965

SOURCE.- BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

COUNCIL OF ECONOMIC ADVISERS

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

l'.)59:
I9601061:
062:
063:
064:
064:

Dec
Dec
Dec-_
Dec
Dec
Dec 2 —
Jan.

Total

142. 1

141. 1

145. 5

.

147. 6

Feb

_-

Mar
Apr

May
June
July

Aug
_ _
Sept _ . _ _
Oct.. . ... ...

_
.

Nov

Dec
965: Jan 2 _
First half__ 2 . .
.
Second half
.
1
1 Deposits

at all commercial banks.
Preliminary.




_

153. 2
159. 4
153.8
153.8
154. 2
154. 5
154. 5
155. 6
156. 7
157.2
158.0
158. 6
159. 1
159. 4
159.8
160. 1
159.5

Currency
outside
banks

Time
deposits l

Demand
deposits

Seasonallyf adjusted
28. 9
113. 2
28. 9
112. 1
29. 6
116. 0
30. 6
117. 1
32. 4
120. 7
34.2
125.2
32. 6
121. 2
32.7
121. 1
32.9
121. 3
33. 0
121. 5
33. 3
121.3
33. 4
122. 1
33. 5
123.3
33. 7
123. 5
33. 8
124. 2
33.9
124.7
34.2
124. 9
34. 2
125. 2
34.4
125.4
125.7
34.3
34.5
125.0

67. 4
72. 9
82. 8
97. 9
112. 3
126.5
113. 9
115. 1
115. 7
116. 4
117. 4
118.5
119. 4
120. 6
121. 7
123. 1
125. 1
126.5
128.9
128.0
129.7

Total

145. 6
144. 7
149. 4
151. 6
157. 2
163. 6
157. 8
153. 8
152. 9
155. 0
152. 4
153. 6
155. 2
155. 1
156. 9
158. 8
160. 4
163. 6
163.9
165.3
162.6

Currency
outside
banks

29.5
29. 6
30.2
31. 2
33. 1
34. 9
32.4
32.3
32.6
32.7
33. 0
33. 3
33. 7
33.8
33.8
34. 0
34. 5
34. 9
34.3
34.6
34. 1

Demand
deposits

Jnadjuste d
116. 1
115. 2
119. 2
120. 3
124. 1
128. 7
125.4
121. 5
120. 3
122. 3
119. 4
120. 3
121. 5
121.3
123. 1
124.8
125. 9
128. 7
129.6
130.8
128.5

Time
deposits '

66.6
72. 1
81.8
96. 7
111. 0
125. 0
113. 2
114. 6
115.7
116. 7
118. 1
119. 2
120. 1
121. 1
122. 0
123. 3
124. 1
125. 0
128.1
127.2
128.9

NOTE.—See note, p. 31.
Source: Board ol Governors of the Federal Reserve System.

U.S.
Government

demand
deposits l
4.9

4. 7
4. 9
5. 6

5. 2

5.5

4. 2

4. 8

6. 1
4. 2
6.9

7. 8

7.0
6.4

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

4.2
4.7
3.7

29

SELECTED LIQUID ASSETS HELD BY THE PUBLIC
Nonbank public holdings of liquid assets (seasonally adjusted) rose in January to a level 7 percent above a year
earlier as saving type assets continued a strong uptrend while demand deposits and currency registered an erratic
month-end decline.

BILLIONS OF DOLLARS
600

BILLIONS OF DOLLARS
600
SEASONAILY ADJUSTED, END OF MONTH

500

500

400

400

SAVING TYPE
ASSETS JJ.

300

300

200

200
DEMAND DEPOSITS AND
CURRENCY

\
100

100

1959

1960

1962

1961

1963

1965

1964

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

SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

[Billions of dollars, seasonally adjusted]
Total
selected
liquid
assets

End of period

1956
1957
1958
1959..
I960...

1961
]962

1963 3
1964
1964: Jan ..
Feb
Mar.

_.

Apr

May
June
July
Aug. .
Sept 5
3

Oct

Nov 3
Dec33
1965: Jan

_.
.

343. 2
3E6. 0
373. 1
393.9
399.2
424. 6
459. 0
495. 3
529. 6
498. 8
499. 5
503. 9
505. 9
507. 5
511.3
511. 7
514. 7
520. 7
522.9
526. 2
529. 6
533.0

Demand
deposits
and
currency '

134. 6
133. 5
138.8
139. 7
138.4
142. 6
144. 8
149.6
156.2
149. 5
148. 4
150. 2
149. 9
149.6
151. 1
151. 8
152. 1
154. 8
154. 6
154.6
156. 2
.155. 5

Time c eposits

Commercial
banks
52. 0
57. 5
65. 4
67. 4
73.1
82.5
98.1
112. 9
126. 9
114, 8
115. 5
115. 9
117.0
117. 9
118.6
119. 8
120. 6
121. 9
123. 7
125. 7
126.9
130.3

1
Agrees in concept with money supply, p. 29, except for deduction of demand
deposits held by mutuai savings banks and savings and loan associations. Data
for2 last Wednesday of month.
Excludes holdings of Government agencies and trust funds, domestic commercial and mutual savings banks, Federal Reserve Banks, and beginning
February I960, savings and loan association?.

30




Mutual
savings
banks

30. 0
31. 6
33.9
34 9
36. 2
38. 3
41.4
44. 5
48. 9
45. 0
45. 4
45. 6
46. 0
46. 3
46. 8
47.1
47.5
47. 9
48. 3
48. 6
48. 9
49.4
3

Postal
Savings
System

1. 6
1.3
1. 1
.9
.8
.6
.5
.5
.4
.5
.4
.4
.4
.4
.4
.4
.4
.4
.4
.4
.4
.4

Savings
and loan
shares

37.0
41.7
47.7
54. 3
61. 8
70. 5
79.8
90.8
101. 2
91. 3
92. 3
93. 4
94.0
94.8
95. 7
96. 5
97.7
99.0
99.7
100.7
101. 2
101.8

ernment
U.S. Gov- securities
ernment maturing
savings
within
bonds '
year 2

54. 8
51. 6
50.5
47.9
47.0
47. 4
47. 6
49.0
49. 9
49. 1
49.0
49. 0
49. 1
49. 1
49. 2
49. 3
49. 3
49.4
49. 4
49.5
49. 9
50.0

Preliminary.
NOTE.—See note, p. 31.
Source: Board of Governors of the Federal Eeserve System.

33.2
38.8
35.6
48.8
41.9
42. 6
46. 8
48. 1
46. 1
48,6
48. 4
49. 3
49. 5
49. 4
49.4
46. 7
47. 1
47. 4
46. 8
46. 7
46. 1
45.7

BANK LOANS, INVESTMENTS, DEBITS, AND RESERVES
Bank credit rose abruptly in January owing to the rise of $3.2 billion in bank loans.
in business and security loans.

This was largely concentrated

BILI.IONS OF DOLLARS

EllLIONS OF DOLLARS

300

300

SEASONALLY ADJUSTED, END OF MONTH

ALL COMMERCIAL BANKS

250

250
TOTAL
LOANS AND INVESTMENTS

200

200

150

ISO
BANK LOANS

100

100
INVESTMENTS IN
U.S. GOVERNMENT SECURITIES

50

50
INVESTMENTS IN OTHER SECURITIES

„„.„.„,.i""i.i.iim»

I i
1959

1960

1961

1963

1962

1964

COUNCIL OF ECONOMIC ADVISMS

SOURCE, BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSfEM

All oomnlercial bank s
(seasonally adjusted da ta)
End of period

1957
1958
1959
1960
1961 s
19625 . _
1963

.

L964«

1964: Jan
Feb
Mar
Apr__ _ - May
—
June__
July
Aug.
_
Sept__.
6
Oct
Nov
Deo

e
6

.. ...
_

1965: Jan « . _..

Investraents
Total
Loans,
loans excluding
and
Other
invest- inter- U.S. Gov- securibank
ernment
ments
ties
securities

166. 4
181. 2
185. 9
194. 5
209. 8
228. 3
246. 5
266. 0
246. 7
248. 4
251. 4
251. 8
253. 5
256. 3
254. 5
258. 7
261. 7
260. 8
264. 9
266. 0
268.7

91. 4
95. 6
107.6
113. 8
120. 5
133. 9
149. 4
166. 7
151. 0
151. 8
153.9
155.4
157.3
160. 0
159.7
161.5
163. 0
163. 1
165.2
166. 7
169.9

Billions of dollars
17.9
57. 1
20. 5
65. 1
20. 5
57.8
20. 8
59. 9
23. 9
65. 4
29. 2
65. 2
35. 0
62. 1
38.4
60. 9
34. 9
60. 8
35. 4
61.2
35. 4
62. 1
35. 6
60. 8
35. 9
60. 3
36.3
60. 0
36.4
58. 4
37. 0
60. 2
37. 5
61. 2
37. 8
59.9
38. 4
61. 3
38. 4
60. 9
39.3
59.5

1
Member banks are ail national banks and those State banks which have taken
membership in the Federal Reserve System.
3
Commercial and industrial loans.
3
Debits during period to demand deposit accounts except interbank and
U.S. Government.
* Averages of daily figures. Annual data arc for December.




1965

Weekly
reporting
member
banks '
Business
loans 2

31. 8
31.7
30.7
32. 2
32. 9
35.2
38. 8
42. 1
37. 2
37. 6
38. 2
38. 1
38. 3
38. 7
38. 5
38. 9
40. 0
39. 9
40. 5
42. 1
41.8

Bank
outside
New York
City (343
centers) ,
seasonally
adjusted
annual
rates 3
1,468
1,481
1,656
1, 736
1, 8S2
S, 021
S, 199
2,405
2,355
2,240
2,322
2,451
2, 313
2, 329
S,4S1
2,873
2,425
2, 454
2,470
2,496

A U member banks ' *

Total
reserves

19, 420
18, 899
18, 932
19, 283
20, 118
20, 040
20, 746
21,615
20, 673
20, 146
20, 213
20, 277
20, 220
20, 558
20, 665
20, 566
20, 928
21, 033
21,160
21,614
21, 618

Borrowings at
Free
Excess Federal
reserves Reserve reserves
Banks
]Millions o : dollars
577
710
516
557
482
906
769
87
568
149
572
304
536
327
414
243
431
256
393
304
358
259
380
213
337
255
390
270
400
265
417
334
420
331
415
309
396
430
411
243
401
299

— 133
— 41
-424
682
419
268
209
171
175
89
99
167
82
120
135
83
89
106
-34
168
102

s Estimates.
e Preliminary.
NOTE.—Between January and August 1959, series for all commercial banks
expanded to include data for all banks in Alaska and Hawaii. Data for all
member banks include Alaska and Hawaii beginning 1954 and 1959, respectively.
Source: Board of Governors of the Federal Reserve System.
O1

CONSUMER AND REAL ESTATE CREDIT
In December 1964, total consumer credit outstanding rose at about the same rate as a year earlier.
adjusted increase in instalment credit was greater than in the 2 preceding months.

The seasonally

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
END OF MONTH

80

80

TOTAL CONSUMER CREDIT OUTSTANDING

60

60

INSTALMENT CREDIT

40

NONINSTALMENT CREDIT

20

20

7

SEASONA UY ADJUSTED (ENLARGE ) SCALE)

J

INSTALMENT CREDIT EXTENDED

\

;^^m~.»-

r" —"^^ —^..i.i-'"*""""'""""*
/

J

—*"""""" Z'SS^""
—-m<f^\
""""""

"

" ~~^

INSTALdAENT CREDIT REPAID

3

r , , , , , i , , , ,,

n
1960

1959

1962

1961

1965

1964

1963

COUNCIL OF ECONOMIC ADVISERS

SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

[Millions of dollars}

Period

1955
1956
1957
1958
1959._
1960
_
1961
1962
1963
1964
1963: Nov
Dec
1964: Jan
Feb
Mar
Apr
May
June,
July
Aug_ . _
Sept
Get
Nov
Deo

Consu mer credit outs tan din g (end of r>eriod;
iinadjusted
Instalment
NonAutomo1
Total
Total
Personal instalbile
ment 2
paper
loans

38, 830
42, 334
44, 970
45, 129
51, 542
56, 028
57, 678
63, 164
69, 890
76, 810
67, 746
69, 890
69, 203
68, 786
68, 913
69, 816
70, 945
71, 907
72, 456
73, 069
73, 495
73, 928
74, 371
76, 810

28, 906
31, 720
33, 867
33, 642
39, 245
42, 832
43, 527
48, 034
53,745
59, 397
52, 695
53,745
53, 597
53, 552
53, 795
54, 382
55, 120
55, 914
56, 496
57, 055
57, 446
57, 826
58, 085
59, 397

13, 460
14, 420
15, 340
14, 152
16, 420
17, 688
17, 223
19, 540
22, 199
24, 521
22, 107
22, 199
22, 189
22, 271
22, 471
22, 830
23, 255
23, 702
24, 024
24, 251
24, 295
24, 423
24, 367
24, 521

6, 112
6, 789
7, 582
8, 116
9, 386
10, 480
11, 256
12, 643
14, 391
16, 071
14, 135
14, 391
14,416
14, 479
14, 552
14, 748
14, 902
15, 087
15, 233
15, 415
15, 612
15, 672
15, 771
16, 071

1
Also includes other consumer goods paper, and repair and modernization
loans, not shown separately.
2
Consists of single-payment loans, charge accounts, and service credit
8
End of period, unadjusted.

32




9, 924
10, 614
11, 103
11, 487
12, 297
13, 196
14, 151
15, 130
16, 145
17, 413
15, 051
16, 145
15, 606
15, 234
15, 118
15, 434
15, 825
15, 993
15, 960
16, 014
16, 049
16, 102
16, 286
17, 413

Consum er instalmc nt credit e xteiicled
and r epaid (seasonallv adji sted)
To tal
Automob ile paper
Extended

38, 972
39, 868
42, 016
40, 119
48, 052
49, 560
48, 396
55, 126
60, 822
66, 070
4, 979
5,272
5,276
5,421
5,480

5, 371
5, 552
5,399
5, 541
5, 529
5, 617
5, 507
5,456
5,816

Repaid

33, 634
37, 054
39, 868
40, 344
42, 603
45, 972
47, 700
50, 620
55, 111
60, 418
4, 596
4,812
4,848
4,842
4,956
4, 959
5,059
5, 029
5, 058
5, 094
5, 104
5,097
5, 155
5,256

Extended

16, 734
15, 515
16, 465
14, 226
17, 779
17, 654
16, 007
19, 796
22, 013
23, 565
1,792
1,914
1,888
1,953
1,942
1,961
2, 023
1,962
1,996
2,017
2, 024
1,924
1, 858
2,043

Mortgage
debt out standing,
nonfarm
1- to 4Repaid
houses 3
13, 082
88, 200
14, 555
99, 000
15, 545
107, 600
15, 415
117, 700
15, 579
130, 900
16, 384
141, 300
16, 472
153, 100
17, 478
166, 500
19, 354
182, 200
21, 243
197, 900
1, 638
1,707
182, 200
1,684
1,716
1, 735
185, 200
1, 759
1,776
1, 768
189, 600
1, 781
1, 789
1, 802
194, 000
1,788
1,818
1, 864
197, 900

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

BOND YIELDS AND INTEREST RATES
Yields on Treasury securities dipped in mid-January but rose in early February.
unchanged or lower in January and early February.

Yields on other securities were

PERCENT PER ANNUM

PERCENT PER ANNUM

PRIME
—> COMMERCIAL
"\
PAPER

1959

1960

CORPORATE Aaa BONDS
[MOODY'S]

1961

1963

1962

1964

SOURCES; SEE TABLE BBLOW

1965
COUNCIL OF ECONOMIC ADVISERS

[Percent per annum]
U.S. Gove rnment secui•ity yields
3-month
3-5 year
Taxable
Treasury
issues 2
bonds 3
bills '

Period
I<J58__.
...
1959.
.
1!)GO_
1961
1962 _
--....
1963
1064
1963: Dec

1964: Jan
Feb
Mar
Apr

...

..

_-

May ..

June
July

Aug

Sept—-

Oct

_ .

Nov
Dec
..
965: Jan
Veek ended:
1965: Jan 16 ._
23,-30-.Feb 6—
13...
20--.

1. 839

3.405

2. 928
2. 378
2. 778

3. 157
3. 549
3. 523
3. 529
3. 532
3. 553
3. 484
3.482
3.478
3. 479
3. 506
3. 527
3. 575
3. 624
3. 856
3.828
3. 814
3. 821
3.848
3.888
3.903
c
3. 936

2. 90
4. 33
3.99
3. 60
3. 57
3.72
4.06
4. 04
4. 06
4. 02
4. 15
4. 18
4.07
4. 03
3.99
3.99
4. 03
4. 04
4. 04
4. 07
4.06

4.06
4. 04
4.05
4.07
4.08

3. 43
4.08
4. 02
3.90
3.95
4. 00
4. 15
4. 14

4. 15
4. 14

4. 18
4. 20
4. 16
4. 13
4. 13
4. 14
4. 16
4 16
4. 12
4. 14
4. 14

High-grade
municipal
bonds
(Standard &
Poor's) *
3. 56
3. 95
3. 73
3.46
3. 18
3. 23
3.22
3.34
3.23
3. 17
3. 32
3.29
3. 21
3. 20
3. 18
3.20
3. 25
3. 26
3. 18
3. 15
3.06

4. 15
4. 14
4.13

4.15
4. 16

'• Rate on new issues within period.
' Selected note and bond issues.
'Series includes: April 1953 to date, bonds due or callable 10 years and after.
' Weekly data are Wednesday figures.
' Data for first of the month, based on the maximum permissible interest rate
'X percent since May 1961) and 30-year mortgages paid in 15 years.




3. 04
3. 05
3.05
3.05
3.05
e

Corpora be bonds
(Moo dy's)

3. 79
4. 38
4. 41
4. 35
4.33
4. 26
4. 40
4.35
4.37
4.36
4.38
4. 40
4. 41
4.41
4. 40
4. 41
4. 42
4. 42
4.43
4. 44
4.43

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

Prime
commercial
paper,
4-6
months
2. 46
3. 97
3. 85
2. 97
3. 26
3. 55
3. 97
3.96
3. 97
3.88
4.00
3. 91
3. 89
4.00
3. 96
3.88
3. 89
4 00
4. 02
4. 17
4.25

4. 43
4. 43
4.42
4.41
4.41

4. 79
4. 79
4.79
4.79
4.79

4. 25
4.25
4.25
4.25
4.25

Aaa

Baa

FHA
new home
mortgage
yields 5
5. 49
5.77
6. 16
5. 78
5. 60
5.46
5. 45
5. 45
5. 45
5.45
5. 45
5.45
5. 45
5.45
5. 45
5.46
5. 46
5. 46
5. 45
5. 45
5.45

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

COMMON STOCK PRICES, YIELD, AND EARNINGS
Stock prices rose to new highs late in January but were adversely affected, early in February, by developments in
Vietnam.
Inde ,, 1941-43 = 10

Index, 1941-43 = 10
MONTHLY

80

WEEKLY

^^

'COMPOSITE PRICE INDEX FOR ~
500 COA, AMON STOCKS^.4/^

^

80

^
.

"\
X^
\^T

/~^

50

,^TT^

^
1

^v^4
I

!

t

1

t

1

1

1 1 1

1

1

I

1

1 1 t

1 1

1

1 1

t

I r i 1 1 i t i 1 i

i

'

r r r t 1 i t i i i

t

t ! i i 1 t

50

r i i f

PE iCENT

PERCE NT
MONTHLY

W€EKtY

DIVIDEND YIELD ON COMMOt-\
\

v— ,.

h-—^r^~—

3
2

STOCKS

. I 1 I f 1t r t 1 11

1

1 1 1 1 1 t

f

1 t

I

1

t

t 1 1 1 \

I 1 !

1 1

i » t * if 1 1 1 11

-^—
p

i i i | f f

(

t i i

"

-,.-•*=—

i 1111 11 111i

3
i i i. i i ! i t i 1 1

RAT O

2

Kt OTO

ix

?•;
/-^__^ PRICE/EARNINGS RAT O ON COMMON SIOCKS

20

--— N.

.

10

»

1

1

V

I

I

1959

\

~\

^/

'~*^*r

/

••—

V——

!

1

1960

t

i

r

1961

1

1

•**

1

t

1962

1

F

f

1963

Total

1959
1960
1961
1962
1963
_
1964
1964: Jan
Feb
Mar
Apr

May
June
July
Aug.
Sept
Oct
Nov
Dee
1965: Jan. .
Week ended:
1965: Jan 8 .
15 „
22
29

Peb 5

12

1

..

r

•r

i

i

A

in

1965
COUNCIL OF ECONOMIC ADVISERS

SOURCE: STANDARD AND POOR'S CORPORATION

Period

i
1964

Total

57.38
55.85
66.27
62.38
69. 87
81.37
76.45
77.39
78. 80
79.94
80. 72
80.24
83. 22
82. 00
83.41
84.85
85.44
83. 96
86. 12

61.45
59.43
69. 99
65. 54
73.39
86. 19
80. 85
81. 96
83. 64
84.92
85. 79
85. 13
88. 19
86. 70
88. 27
89.75
90. 36
88.71
91.04

84. 88
85.78
86. 60
87.21
87.52
86.47

89. 75
90. 68
91. 52
92.20
92.52
91.32

Price index >
Industrials
Capital Consumers'
goods
goods
1941-'13 = 10
63. 93
47.35
59.75
47. 21
67.33
57.01
58. 15
54.96
63.30
62. 28
76.32
73. 83
71.89
67. 36
72. 92
68. 11
75. 48
70. 15
76. 52
70. 93
76. 50
72. 67
72.42
75. 85
77.76
75. 47
75. 91
75.40
77. 77
77.74
79.13
79. 08
78. 97
79. 18
77. 15
77. 39
79. 65
79.42

78. 24
79. 62
80. 95
81.93
82.93
82.22

78. 56
79. 19
79. 85
81. 15
81.80
80.50

Eailroads

Dividend
yield 2
(percent)

44. 15
46.86
60. 20
59. 16
64.99
69. 91
67. 26
67. 20
66. 78
67. 30
67. 29
67. 46
70.35
71. 17
72.07
73.37
74.39
74.24
75. 87

35.09
30.31
32. 83
30. 56
37. 58
45.46
41. 00
41. 54
42. 88
43.27
44.86
46.29
• 48. 93
47. 17
47. 14
48. 69
48. 01
45. 71
46.79

3. 23
3. 47
2. 98
3. 37
3. 17
3. 01
3.06
3.05
3. 03
3. 00
3. 01
3. 05
2. 96
3. 03
3. 00
2. 95
2. 96
3. 06
3.00

74. 60
75. 58
76. 49
76.81
77.33
77. 11

46. 01
46. 68
47.09
47.36
47.20
46.51

Price/
earnings
ratios 3

3.02
3. 00
2. 97
2.96
2.95
3.01

Public
utilities

17. 05
17.09
21. 06
16. 68
17. 62
18. 16

17.61
17. 87

2
Includes 500 common stock, 425 are industrials; 50 are public utilities; and 25
Aggregate cash dividends (based on latest known annual rate) divided by
are railroads. Weekly indexes for capital and consumer goods are Wednesday
the aggregate monthly market value of the stocks in the group. Annual yields
figures; all other weekly indexes are averages of daily figures.
are averages of monthly data. Weekly data are Wednesday figures.
3
Ratio of price index for last day in quarter to quarterly earnings (seasonally
adjusted annual rate). Annual ratios are averages of quarterly data.
Source: Standard and Poor's Corporation.

34




FEDERAL FINANCE

•EDERAL ADMINISTRATIVE BUDGET RECEIPTS AND EXPENDITURES
he budget deficit for the first 7 months of fiscal 1965 amounted to $10.6 billion.
seal 1964 it was $11.2 billion.

In the corresponding period of

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

NET BUDGET RECEIPTS

NET BUDGET EXPENDITURES
100

100

75

75

50

50

25

25

0
1960

1961

1963

1962

1964

1960

1965
-HO

1961

1962

1963

1964

1965

1964

1965

BUDGET SURPLUS (*) OR DEFICIT (-)

NATIONAL DEFENSE

(ENLARGED SCALE)

75

45

FIRST 7 MONTHS

0

50

-5
25
-10
-15

1960

1961

1962

1963

1964

1965

1960

1961

1962

1963

FISCAL YEARS

*ES7IUATE

COUNCIL Of ECONOMIC ADVISERS

SOURCE. TREASURY DEPARTMENT AND. BUREAU OF THE BUDGET

Net
budget
receipts

Period

•n-al year 1959
seal year 1960
;eal year 1961
•ual year 1962 ._
^cal year 1963
:cal year 1964
:cal year 1965 ";cal year 1966 s
r»:5: Deo
.
r>l: Jan_ _ _ _
Feb
. ..
Mar
Apr
May __ _
June
July
Aug
Sept
Oct
Nov
Deo_ .
( > 5: Jan
i initiative totals first 7
Fiscal year 1964
Fiscal year 1965
1

_ _ __

_

- . .
_.
-

- .._
.._ . _.
_. _ _

.

_.

_

..

__ _
-_ -

...

___

months:

_„

_

[Billions of dollars]
Net budg et expenditu res
N ational defe use *
DepartTotal
Military
ment of
Total
Defense,
assistance
military

80. 3
76.5
81. 5
87. 8
92. 6
97.7
97. 5
99. 7
8. 3
8. 5
7.5
7. 9
7. 9
7. 5
9. 5
7.4
8. 1
8.4
8. 3
7. 1
8.8
7.7

46. 5
45.7
47. 5
51. 1
52. 8
54.2
52. 2
51. 6
4.5
4. 3
4. 4
4. 4
4. 6
4. 7
5. 7
3.5
3. 8
4. 2
4. 2
4.0

4. 1
4. 2
4. 3
5. 1
3.2
3.5
3.9
3.9
3.7
4. 2
3.7

46. 1
45. 1

57. 3
55. 8

30. 5
28. 2

28. 2
26. 2

hi addition to items shown, also includes atomic energy and defense related

• i lc(«.

includes guaranteed securities held outside the Treasury.
"wn is subject to statutory debt limitation.




41.2
41. 2
43. 2
46. 8
48. 3
49. 8
48. 1
47. 9
4. 2
4. 0

67. 9
77.8
77.7
81. 4
86. 4
89.5
91. 2
94. 4
8.8
5. 9
8. 0
10. 1
6. 6
6.1
12. 3
3. 5
6. 7
10. 1
3. 4
7.0
8. 9
5.6

Not all of total

4.0

4. 5

4.0

(4)
(4)

2. 3
1. 6
1. 4
1. 4
1. 7
1.5
1.2
1. 1
.1
.1
.1
.1
.1
.2
.3

.1

w .1

.1
.1
.6
.4

Budget
surplus
or
deficit ( — )

— 12.4
1. 2
-3.9
-6.4
-6.3
-8.2
—6. 3
—5. 3
.5
-2. 6
.5
2.3
— 1.3
— 1. 4
2. 8
-3. 9
— 1. 4
1.6
—4.9
s
()

Public
debt
(end of3
period)

-2.0

284.8
286. 5
289.2
298.6
306. 5
312.5
316. 9
322. 5
310.1
309.3
311. 2
310.4
308.4
312. 3
312. 5
312.0
314. 9
316. 5
316. 5
319. 3
318. 8
318.6

-11.2
— 10. 6

309. 3
318. 6

* Less than $50 million.
« Deficit of $15 million.
NOTE.—Total budget receipts and expenditures exclude certain intragovernmental transactions,
RnTirftpR- Trpflsnrv Dpnnrt.me-nt fm,l HnrAaii nf tho Ttndont

35

FEDERAL CASH RECEIPTS FROM AND
PAYMENTS TO THE PUBLIC
In the fourth quarter of 1964, cash payments exceeded cash receipts by $1.5 billion, on a seasonally adjusted basis.
For the calendar year as a whole, the excess of payments was $5.8 billion.

BILLIONS OF DOLLARS
35

+5

BILLIONS OF DOLLARS
35

EXCESS OF (:ASH

mm™

I

-5

ina il ii „,

g^wm
^ • • I

'^

EXCESS OF C ASH PAYMENTS
.

.

-

(

t

1

t

1960

1959

+5

SEASONALLY ADJUSTED

RECEIPTS

1

1

111

I

1962

1961

o

^ ^ Hi m ^nmjg
I

r

1963

i i t
1964

1

1

-5

(

1965

CALENDAR YEARS
UDGET

»OUH lES, TREASURY DEPART *ENT AND BUREAU OF THE

COUNCH OF ECONOMIC ADVISEXS

[Billions of dollars]
Cash receipts
from the
public

Period
Fiscal year:
1958
1959
1960
19611962
1963
1964
1965 '
1966 '
Calendar year:
1959..
1960
1961
1962
1963 2
1964

_

87. 6
98. 3
97. 9
106. 2
112. 6
115. 0

Quarterly total (calendar years):
1963: III
IV
1964: I..
.
II
-_
_
III
IV
i Estimate.

36




81. 9
81.7
95. 1
97. 2
101. 9
109. 7
115.5
117.4
123. 5

* Preliminary.

27. 3
24.5
30. 3
33. 4
27.0
24. 3

Excess of
receipts or
payments

Cash payments to
the public

83.5
94, 8
94, 3
99. 5
107.7
113.8
120.3
121. 4
127. 4
95. 6
94. 7
104, 7
111. 9
117.2 .
120. 9
Unadjusted
30. 9
30. 6
28. 6
30. 2
31. 1
30. 9

Cash receipts
from the
public

Cash payments to
the public

Excess of
receipts or
payments
(-)

-1.6
— 13. 1
.8
-2. 3
-5.8
— 4. 0
-4.8
-4.0
-3.9
-8. 0
3.6
-6. 8
— 5. 7
-4.6
-5. 8
Se£isonally adjus ted
— 3. 6
-6. 1
1. 7
3.2
-4. 1
-6. 6

28. 5
29.0
29.7
28. 5
28.2
28.7

30. 4
30.0
30.5
29.5
30. 6
30.2

Sources: Treasury Department and Bureau of the Budget.

—19
—1.0
0

—. o

-1.0
-2.5
—1.5

FEDERAL BUDGET, NATIONAL INCOME ACCOUNTS BASIS
Federal receipts rose $0.2 billion in calendar 1964 and expenditures by $4.0 billion, according to preliminary estimates. As a result, the deficit was $5.3 billion compared to $1.5 billion in the preceding year.

BILLIONS OF DOaARS
140

BILLIONS OF DOLLARS
140

SEASC* ALLY ADJUSTED ANNUAL RATES

SURPLUS

-

M ^^ W& """

I'-Kl !•:•;$ t:u;-l

«!•

wer

B« —

**** • -

-

DEFICIT

-20

i

i

i

T

1

1

1960

1959

1

1

i

!

i

i

1

1962

1961

1

1

r

i

1963

i

i

i

I

-20

1965

1964

CALENDAR YEARS
SOURCE. DEPARTMENT OF COMMERCE

COUNCIL Of ECONOMIC ADVISERS

[Billions of dollars, quarterly data at seasonally adjusted annual rates]
Federal (Sovernment receipt s
Period

Fiscal year:
1961
1962
1963
1964_.__
1965 Ji.__
1966
Calendar
vear:
"1958
1959
1960
1961
1962
1963 2
1964
1963:III_
IV.
1964: !___
II.-

m_
2

IV .

Federa 1 Governrnent expenditures

Indirect ContriPersonal Corpo- business butions
rate
tax and profits tax and to social
Total nontax
nontax
tax
receipts accruals accruals insurance

GrantsSubsidies Surplus
in-aid
Purless
or
Net
current deficit
chases Trans- to State
interest surplus
and
Total of goods fer pay(-)
ments
paid
local
of Govt.
and
goverservices
enterments
prises

95. 4
104.3
109. 6
114. 7
116. 0
121. 0

44.2
47.7
50. 1
51.4
50. 3
52. 2

19. 7
21. 9
22. 1
23. 5
23. 9
24. 7

13. 6
14. 9
15. 2
16. 0
16. 8
16. 1

18. 0
19. 7
22. 1
23. 8
25. 0
28. 0

97. 8
106. 2
112. 3
118.5
121. 0
127. 0

54.9
60.0
63. 6
66.1
65. 9
66. 7

25.9
27. 8
29. 2
30. 4
31. 8
35. 2

78. 5
90. 3
96. 6
98.3
106.4
113. 6
113. 8
114. 2
117. 2
114. 8
112. 3

36. 0
40. 4
44. 0
45. 1
49. 1
51. 9
49. 0
52.2
53.4
51.2
47.3
48. 2
49. 3

17.7
22.0
21. 0
20. 9
21.8
23. 0
24. 0
23. 0
24.4
23. 9
24. 4
24. 4

11. 9
13.0
14.0
14. 1
15. 1
15. 6
16.4
15. 7
15. 9
15. 9
16. 4
16. 6
16. 6

12. 4
14.9
17. 6
18.2
20.5
23. 0
24. 4
23.2
23. 5
23. 9
24.2
24. 7
25.0

87. 9
91. 4
93.1
102.6
110.4
115. 2
119. 2
114. 9
116.6
117. 2
120. 2
119. 2
120. 1

52. 6
53. 6
53. 1
57.4
62. 9
64. 7
65. 5
64. 4
64.9
64.3
67. 1
65.5
65. 3

21. 3
22. 2
23. 8
27.4
28. 3
29. 9
31. 0
29. 6
30.3
31. 1
30. 7
30. 8
31. 5

114. 0

2
i Estimates.
Preliminary estimates.
NOTE.—Data for Alaska and Hawaii included beginning I960.




6.8
7.6
8.3
9.8

10.7
13. 0

5. 4
6. 7

6. 9
6. 8
7.4
8.1
8.5
8.6
5.6

6.3

6. 4
7. 1

8.0
9.1

7. 1
7. 7
8. 4

7. 2
10. 4

9.4

9. 9

9.8

10. 4
10.6
10. 7

6.7

7.8
7.9
8.3

8. 4

8.4
8.4

3.3
4.0
3.8

4. 1
4. 1

as
3.0

2. 5

2.8
3.9

4. 2
3. 8
3. 9
3. 7
3. 5

3.7
3.6
3.9
4.2

— 2. 4
—1 9
—2.8
— 3. 9
— 5. 0
— 6. 0
— 0. 4
i i
3! 5
— 4. 3
—4. 1
— 1. 5
— 5. 3
—.7
.6
—2.4
—7. 8
— 5. 2

Source: Department of Commerce.

37

UNITED STATES
GOVERNMENT PRINTING OFFICE

PENALTY FOR PRIVATE USE TO AVOID
PAYMENT OF POSTAGE. *3OO
IGPO1

DIVISION OF PUBLIC DOCUMENTS

WASHINGTON, D.C. 2O4O2
OFFICIAL BUSINESS

First-Class Mail

Contents
TOTAL OUTPUT, INCOME, AND SPENDING

Pago
1
2
3
4
5
6
7
8
9

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

EMPLOYMENT, UNEMPLOYMENT, AND WAGES
Status of the Labor Force
Selected Measures of Unemployment and Part-Time Employment
Unemployment Insurance Programs
Nonagricultural Employment
Weekly Hours of Work—Selected Industries
Average Hourly and Weekly Earnings—Selected Industries

10
11
12
13
14
15

PRODUCTION AND BUSINESS ACTIVITY
Industrial Production
Production of Selected Manufactures
Weekly Indicators of Production
New Construction
New Housing Starts and Applications for Financing
Business Sales and Inventories—Total and Trade
Manufacturers' Shipments, Inventories, and New Orders
Merchandise Exports and Imports
U.S. Exports and Imports of Goods and Services
U.S. Balance of International Payments

16
17
18
19
20
21
22
23
24
25

PRICES
Consumer Prices
Wholesale Prices
Prices Received and Paid by Farmers

26
27
28

MONEY, CREDIT, AND SECURITY MARKETS
Money Supply
Selected Liquid Assets Held by the Public
Bank Loans, Investments, Debits, and Reserves
Consumer and Real Estate Credit
Bond Yields and Interest Rates
Common Stock Prices, Yield, and Earnings

•

29
30
31
32
33
34

FEDERAL FINANCE
Federal Administrative Budget Receipts and Expenditures
Federal Cash Receipts from and Payments to the Public
Federal Budget, National Income Accounts Basis

35
36
37

NOTE.— Detail in these tables will not necessarily add to totals because of rounding.
Data for Alaska and Hawaii are not included unless specifically noted.
Unless otherwise stated, all dollar figures are in current prices.

38




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