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99th Congress, 1st Sessi

Economic Indicators
JUNE

1985

Prepared for the Joint Economic Committee by the




Council of Economic Advisers

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1985

JOINT ECONOMIC COMMITTEE
(Created pursuant to Sec. 5(a) of Public Law 304, 79th Cong.)
DAVID R. OBEY, Wisconsin, Chairman
JAMES ABDNOR, South Dakota, Vice Chairman
HOUSE OF REPRESENTATIVES
LEE H. HAMILTON (Indiana)
PARREN J. MITCHELL (Maryland)
AUGUSTUS F. HAWKINS (California)
JAMES H. SCHEUER (New York)
FORTNEY H. (PETE) STARK (California)
CHALMERS P. WYLIE (Ohio)
DAN LUNGREN (California)
OLYMPIA J. SNOWE (Maine)
BOBBI FIEDLER (California)

SENATE
WILLIAM V. ROTH, JR. (Delaware)
STEVEN D. SYMMS (Idaho)
MACK MATTINGLY (Georgia)
ALFONSE M. D'AMATO (New York)
PETE WILSON (California)
LLOYD BENTSEN (Texas)
WILLIAM PROXMIRE (Wisconsin)
EDWARD M. KENNEDY (Massachusetts)
PAUL S. SARBANES (Maryland)

SCOTT LILLY, Executive Director
ROBERT J. TOSTERUD, Deputy Director

COUNCIL OF ECONOMIC ADVISERS
BERYL W. SPRINKEL, Chairman
[PUBLIC LAW 120—81sT CONGRESS; CHAPTER 237—IST SESSION]
JOINT RESOLUTION [SJ. Res. 55]
To print the monthly publication entitled "Economic Indicators"
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the
Joint Economic Committee be authorized to issue a monthly publication entitled "Economic Indicators," and that
a sufficient quantity be printed to furnish one copy to each Member of Congress; the Secretary and the Sergeant
at Arms of the Senate; the Clerk, Sergeant at Arms, and Doorkeeper of the House of Representatives; two
copies to the libraries of the Senate and House, and the Congressional Library; seven hundred copies to the
Joint Economic Committee; and the required numbers of copies to the Superintendent of Documents for
distribution to depository libraries; and that the Superintendent of Documents be authorized to have copies
printed for sale to the public.
Approved June 23, 1949.
Charts drawn by Art Production Branch, Office of the Secretary, Department of Commerce.
Economic Indicators, published monthly, is available at $2.50 a single copy
($3.13 foreign), or by subscription at $27.00 per year ($33.75 for foreign
mailing) from:
SUPERINTENDENT OF DOCUMENTS
GOVERNMENT PRINTING OFFICE
WASHINGTON, D.C. 20402

11



TOTAL OUTPUT, INCOME, AND SPENDING
GROSS NATIONAL PRODUCT
According to very preliminary ("flash") estimates current-dollar gross national product (GNP) is expected to rise 6.4
percent (annual rate) or $59.6 billion in the second quarter of 1985. Real GNP (GNP adjusted for price changes) is
expected to rise 3.1 percent and the implicit price deflator, 3.2 percent.
BILLIONS OF DOLLARS (RATIO SCALE)
4.OOO

3600

SEASONAUY ADJUSTED ANN Ml

—

BILLIONS OF DOLLARS (RATIO SCALE)
4.OOO

RATES

—

^^.

—

^^

—

GNP
IN <~i 'R RENT DOLLARS

3,200

3,200

^^

^^

V-i

_-

—

— 3,600
~

^

'

—

S*^

2800

-

—

.

2,400

2 400
-

2000

XI

_

^

r^

^

2 000
—
GNP

IN 1972 DOLLARS

1,600

1,600
*••"

•"•

1,200

11i
1977

1 1 1
1978

\

\
1979

\

1

1

1

1

1

1

1

1981

1980

1

i

1

i

1

1983

1982

SOURCE: DEPARTMENT OF COMMERCE

\

\

\

1

1

i

1,200

1985

1984

COUNCIL OF ECONOMIC ADVISERS

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

Period

Gross
national
product

Personal
consumption
expenditures

Gross
private
domestic
investment

Goven iment purch ises of
goods and serv ces

Bxports ar d imports of goods and
services
Net
exports

Federal
Exports

Imports

Total

National
defense

Nondefense

State and
local

sales

1975
1976
1977
1978
1979
1980
1981
1982
1983
1984

1,549.2
1,718.0
1,918.3
2,163.9
2,417.8
2,631.7
2,957.8
3,069.3
3,304.8
3,662.8

976.4
,084.3
,204.4
,346.5
,507.2
,668.1
,849.1
,984.9
2,155.9
2,341.8

206.1
257.9
324.1
386.6
423.0
401.9
484.2
414.9
471.6
637.8

26.0
13.8
-4.0
-1.1
13.2
23.9
28.0
19.0
-8.3
-64.2

154.9
170.9
182.7
218.7
281.4
338.8
369.9
348.4
336.2
364.3

128.1
157.1
186.7
219.8
268.1
314.8
341.9
329.4
344.4
428.5

339.9
362.1
393.8
431.9
474.4
537.8
596.5
650.5
685.5
747.4

122.7
129.2
143.4
153.6
168.3
197.0
228.9
258.9
269.7
295.4

83.0
86.0
92.8
100.3
111.8
131.2
153.7
179.5
200.5
221.5

39.7
43.2
50.6
53.3
56.5
65.9
75.2
79.4
69.3
73.9

217.2
232.9
250.4
278.3
306.0
340.8
367.6
391.5
415.8
452.0

1,556.1
1,706.2
1,895.3
2,137.4
2,403.5
2,641.5
2,931.7
3,095.4
3,318.3
3,604.6

1982: HI
IV

3,080.1
3,109.6

2,001.3
2,046.1

415.9
376.2

6.6

346.3

321.7

339.7
315.4

656.3
681.0

261.6
279.4

183.3
191.0

78.2
88.4

394.7
401.6

3,095.5
3,170.8

1983: I
II

m

3,173.8
3,267.0
3,346.6
3,431.7

2,070.4
2,141.6
2,181.4
2,230.2

405.0
449.6
491.9
540.0

346.1

308.9
334.5
358.4
375.9

678.8
682.2
689.8
691.4

273.0
270.5
269.2
266.3

194.7
199.3
200.9
207.2

78.3
71.3
68.3
59.1

405.8
411.6
420.6
425.1

3,216.8
3,286.4
3,350.9
3,419.0

n
ni
rv

3,553.3
3,644.7
3,694.6
3,758.7

2,276.5
2,332.7
2,361.4
2,396.5

623.8
627.0
662.8
637.8

358.9
362.4
368.6
367.2

410.4
421.1
459.3
423.2

704.4
743.7
761.0
780.5

267.6
296.4
302.0
315.7

213.4
220.8
220.3
231.6

54.2
75.6
81.7
84.1

436.8
447.4
458.9
464.8

3,479.5
3,594.1
3,622.8
3,722.1

3,810.6
3,870.2

2,446.5

646.8

6.3
19.6
6.5
-16.4
-29.8
-51.5
-58.7
90.6
-56.0
-74.5

360.7

435.2

791.9

319.9

233.9

85.9

472.0

3,770.0

1984:

IV
I

1985: I r

n*

"Very preliminary ("dash") estimate.




328.5

328.1
342.0

Source: Department of Commerce, Bureau of Economic Analysis.

GROSS NATIONAL PRODUCT IN 1972 DOLLARS
[Billions of 1972 dollars; quarterly data at seasonally adjusted annual rates]

Period

1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1982:

HI
IV

1983: I

n
m
IV

1984:

I

n
m
IV

1985:

lr

n*

Gross
national
product

Personal
eonsumption
expenditures

G ross priva: e
dome stic invest ment
Nonresidentiai
fixed

Residential fixed

Ex sorts of goods
& nd service >

Change
in
business
inventories

1,231.6
1,298.2
1,369.7
1,438.6
1,479.4
1,475.0
1,512.2
1,480.0
1,534.7
1,639.3

779.4
823.1
864.3
903.2
927.6
931.8
950.5
963.3
1,009.2
1,062.4

125.6
140.3
158.3
169.9
165.8
175.0
166.9
171.0
204.9

42.2
51.2
60.7
62.4
59.1
47.1
44.5
37.9
53.7
60.2

-4.4
11.3
-10.4
-3.6
24.8

1,477.1
1,478.8

964.2
976.3

163.9
161.5

36.8
40.8

-6.4
-24.6

1,491.0
1,524.8
1,550.2
1,572.7

982.5
1,006.2
1,015.6
1,032.4

161.6
165.3
172.6
184.5

46.2
53.4
57.2
57.8

-16.5
-6.1

1,610.9
1,638.8
1,645.2
1,662.4

1,044.1
1,064.2
1,065.9
1,075.4

193.3
202.9
209.5
213.8

60.6
60.8
60.1
59.2

31.6
20.3
30.6
16.8

1,663.5
1,676.2

1,089.1

213.0

60.0

19.1

119.3

6.7
7.8

13.3
16.0

7.3

Govern ment purcl ases of
gOO( is and sen ices
Federal

Net
exports

Exports

Imports

Total
Total

National
defense

Nondefense

State
and local

Final
sales

103.5
110.1
112.9
126.7
146.2
159.1
160.2
147.6
139.5
146.0

71.4
84.7
90.9
102.7
109.0
108.8
116.4
118.0
126.9
161.1

265.2
265.2
269.2
274.6
278.3
284.3
287.0
292.7
291.9
302.1

97.4
96.8
100.4
100.3
102.1
106.4
110.3
117.0
116.2
122.5

66.4
64.9
65.4
65.7
67.4
70.0
73.5
79.1
84.7
89.6

31.0
31.8
35.0
34.7
34.8
36.4
36.7
37.9
31.5
32.9

167.8
168.4
168.8
174.3
176.2
177.9
176.8
175.7
175.7
179.6

1,238.4
1,290.4
1,356.4
1,422.6
1,472.2
1,479.4
1,500.9
1,490.4
1,538.3
1,614.5

25.7
24.1

146.6
136.7

120.9
112.6

292.8
300.6

117.2
124.8

80.6
81.9

36.6
42.9

175.7
175.8

1,483.5
1,503.4

22.9
13.6
11.9

138.2
137.0
141.6
141.0

115.3
123.4
129.7
139.1

294.3
292.4
292.0
288.8

119.0
117.2
115.6
113.0

83.3
84.8
84.4
86.3

35.7
32.3
31.2
26.7

175.3
175.2
176.4
175.8

1,507.5
1,530.9
1,549.3
1,565.4

-8.3
-11.4
-27.0
-13.4

144.9
144.7
147.4
147.1

153.2
156.2
174.4
160.5

289.5
302.1
306.1
310.5

112.2
123.2
125.0
129.6

87.1
89.6
89.1
92.7

25.2
33.6
36.0
36.8

177.3
178.9
181.1
180.9

1,579.3
1,618.5
1,614.6
1,645.6

-28.4

143.7

172.1

310.7

129.8

92.7

37.1

180.9

1,644.4

32.2

25.4
22.0
24.0
37.2
50.3
43.8
29.7
12.6
-15.0

.9
7.2

2.0

"Very preliminary ("flash") estimate.

Source: Department of Commerce, Bureau of Economic Analysis.

IMPLICIT PRICE DEFLATORS FOR GROSS NATIONAL PRODUCT
[1972 = 100; quarterly data are seasonally adjusted]
Gross private
domestic i nvestment

Personal consumption
expenditures
Period

national
product

Total

Durable
goods

able
goods

Services

Exports am imports of
goods ami services

Gove mment pure rases of goc ds and
sernces
Federal

Nonresidential
fixed

Residential fixed

Exports

Imports
Total

National
defense

Nondefense

State
and local

1975
1976
1977
1978
1979
1980
1981
1982
1983
1984

125.79
132.34
140.05
150.42
163.42
178.42
195.60
207.38
215.34
223.43

125.3
131.7
139.3
149.1
162.5
179.0
194.5
206.0
213.6
220.4

117.3
123.9
129.2
136.4
145.0
156.2
167.1
174.5
177.7
179.0

132.5
137.2
143.6
153.4
169.9
188.1
202.5
208.7
213.0
217.7

121.6
129.6
139.3
150.0
162.3
178.8
196.8
213.6
226.0
237.6

132.2
138.6
146.3
157.2
170.8
186.2
202.2
209.5
206.4
207.8

131.0
140.7
158.0
178.3
200.5
218.5
234.1
241.3
246.4
255.7

149.6
155.3
161.9
172.6
192.5
212.9
230.9
236.0
241.0
249.4

179.6
185.6
205.5
214.1
246.1
289.4
293.8
279.3
271.5
266.0

126.0
133.5
142.8
153.1
164.8
185.2
207.6
221 .4
232.1
241.2

124.9
132.4
141.9
152.7
166.0
187.5
209.1
227.0
236.6
247.2

128.2
135.7
144.6
153.8
162.5
180.8
204.7
209.8
220.0
224.7

138.3
148.4
159.7
173.7
191.5
208.0
222.8
236.7
251.7

1982: ffl
IV

208.53
210.27

207.6
209.6

175.5
175.6

209.6
210.5

215.6
219.4

208.8
210.1

241.8
240.0

236.2
235.3

280.9
280.1

223.2
223.8

227.4
233.1

213.9
206.2

224.7
228.4

1983: I

212.87
214.25
215.89
218.21

210.7
212.8
214.8
216.0

176.6
176.8
178.0
179.3

210.2
212.6
214.5
214.8

221.9
224.9
227.3
229.7

207.1
205.2
205.1
208.1

245.2
243.0
248.7
248.3

237.7
239.4
241.5
245.4

267.8
271.0
276.3
270.3

229.4
230.8
232.8
235.6

233.7
234.8
237.9
240.0

219.4
220.3
219.1
221.4

231.5
234.9
238.4
241.8

1984:

n
m

220.58
222.40
224.57
226.10

218.0
219.2
221.5
222.8

179.0
179.5
179.2
178.4

217.4
216.4
217.8
219.4

232.6
236.0
239.7
242.0

206.3
207.4
208.0
209.4

249.4
255.9
258.6
259.1

247.7
250.4
250.1
249.6

267.9
269.6
263.3
263.7

238.5
240.6
241.5
243.7

245.1
246.4
247.4
249.8

215.5
225.1
227.1
228.2

246.4
250.0
253.5
256.9

1985: I '.

229.07
23090

224.6

179.1

220.1

245.2

211.8

258.6

251.0

252.8

246.4

252.4

231.5

260.9

n
m
rv
I

IV

n*

* Very preliminary ("flash") estimate.




Source: Department of Commerce, Bureau of Economic Analysis.

129.4

CHANGES IN GNP, PERSONAL CONSUMPTION EXPENDITURES, AND
RELATED PRICE MEASURES
[Percent change from previous period; quarterly data at seasonally adjusted annual rates]

Gro ss national prc duct
Period

8.0
10.9
11.7
12.8
11.7

1975
1976

1977
1978
1979
1980
1981
1982
1983
1984
1982:
1983:

1984:

1985:

Constant
(1972)
dollars

Current
dollars

8.8
12.4

3.8
7.7
10.8

2.5
3.9
8.5

HI
IV
I

n
m

12.3
10.1
10.6
14.9
10.7

IV
I
II
Ill
IV
I *
II'

5.6
7.1
5.6
6.4

-1.2
5.4
5.5

5.0
2.8
-.3
2.5
-2.1

3.7
6.8
g
.5
3.3
9.4
6.8
5.9
10.1

7.1
1.6
4.3
.3
3.1

Implicit
price
deflator

Personal 3onsumption e!tpenditures

Chain price
index

9.3
5.2

5.8
7.4
8.6
9.2
9.6
6.0
3.8
3.8
3.4
3.4
5.0
2.6
3.1
4.4
4.4
3.3
3.9
2.8
5.4
3.2

Fixedweighted
price index
(1972
weights)

9.2

9.1

5.7
6.1
7.6
8.9
8.9
9.5
6.6
4.3
4.2
5.8
5.0
3.4
4.3
4.4
4.1
4.9
4.1
3.9
3.6
4.6

5.8
6.3
7.8
9.5
9.8
9.7
6.4
4.2
4.3
5.8
4.6
3.3
4.1
4.7
3.9
5.0
4.3
4.0
3.6
4.3
3.9

"Very preliminary ("flash") estimates.
NOTK.—Annual changes are from previous year and quarterly changes are from previous quarter.

Implicit
price
deflator

Constant
(1972)
dollars

Current
dollars

9.9

2.2
5.6
5.0
4.5
2.7
.5

11.0
11.1
11.8
11.9
10.7
10.9

2.0
1.4
4.8
5.3
2.2
5.1
2.6

7.3
8.6
8.6
8.5
9.3
4.8
14.5

10.0

7.6
9.2
8.6

3.8
6.8
4.6
7.9
.7
3.6
5.2

10.2

5.0
6.1
8.6

Chain price
index

7.6

5.1
5.8
7.0
9.0
10.2

8.7
5.9
3.7
3.2
6.1
4.0
2.2
4.1
3.7
2.3
3.8
2.2
4.3
2.4
3.2

Fixedweighted
price index
(1972
weights)

7.7
5.3
6.0
7.3
9.3
10.7

9.2
6.1
4.1
3.9
6.3
5.0
2.5
4.4
3.7
3.6
4.7
3.3
3.9
3.8
3.6

7.8
5.3
6.2
7.4
9.7
11.1

9.4
5.9
4.0
3.9
6.6
4.9
1.9
4.5
3.9
3.4
4.9
3.1
4.0
3.9
3.3

Source: Department of Commerce, Bureau of Economic Analysis.

NONFINANCIAL CORPORATE BUSINESS—OUTPUT, COSTS, AND
PROFITS
[Quarterly data at seasonally adjusted annual rates]

Cun ent-dollar co st and profit per unit of output (dolla s) 1

Gross <3 omestic
product of ilonfinancial
corporate business
(hillions o f dollars)
Period
Current
dollars

1975
1976

1977
1978
1979
1980
1981
1982
1983
1984
1982:
1983:

1984:

1985:
1

m
IV
I
II
Ill
IV
I
II
Ill
IV
Ir

890.0
1,001.3
1,128.4
1,276.2
1,416.8
1,540.7
1,739.2
1,778.4
1,917.7
2,152.8
1,787.8
1,772.4
1,812.3
1,887.6
1,956.6
2,014.2
2,084.2
2,146.9
2,168.9
2,211.2
2,242.6

1972
dollars

694.2
745.5
795.8
846.3
876.1
859.5
883.3
857.4
896.4
977.2
858.5
846.5
855.7
886.2
912.4
931.1
956.9
979.5
980.0
992.5
994.0

Total
cost and
profit z

1.282
1.343
1.418
1.508
1.617
1.793
1.969
2.074
2.139
2.203
2.083
2.094
2.118
2.130
2.144
2.163
2.178
2.192
2.213
2.228
2.256

Capital
consumption
allowances
with
capital
consumption
adjustment
0.137
.141
.145
.155
.171
.198
.217
.245
.243
.237
.247
.254
.250
.243
.241

.239
.236
.234
.238
.239
.243

Indirect
business
taxes 3

0.140
.141
.141
.144
.149
.172
.201
.210
.219
.220
.211
.217
.218
.222
.220
.219
.217
.218
.221
.222
.226

Output is measured hy gross domestic product of nonfinaneial corporate business in 197^ dol-

This is equal to the deflator for gross domestic product of nonfinancinl corporate business with
the decimal point shifted two places to the left.




Net
interest

Total

lars.
2

Compensation of
employ-

Corporate profits with inventory
valuation s nd capital ca nsumption
adjustments

0.837
.878
.928
.998
1.094
1.218
1.307
1.397
1.409
1.425
1.404
1.419
1.421
1.408
1.400
1.408
1.415
1.414
1.434
1.438
1.462
3

0.044
.040
.040
.044
.050
.065
.076
.084
.077
.081
.080
.081
.079
.076
.077
.077
.078
.081
.084
.083
.082

0.124
.144
.163
.168
.154
.140

.167
.138
.191
.240
.141
.123
.151
.182
.206
.221
.233
.246
.236
.245
.245

Profits
tax
liability

0.059
.071
.075
.079
.079
.078
.072
.052
.065
.073
.052
.043
.049
.064
.073
.072
.078
.079
.066
.069
.067

Profits
after
tax 4

0.065
.073
.088
.089
.075
.062
.095
.086
.126
.167
.089
.080
.102
.118
.133
.149
.155
.167
.171
.176
.178

Output
of all
employees (1972

7.774
7.998
8.141
8.209
8.194
8.118
8.271
8.357
8.634
8.831
8.406
8.398
8.464
8.617
8.728
8.725
8.801
8.863
8.807
8.861
8.797

Compensation per
hour of
all
employees
(dollars)

6.507
7.021
7.555
8.191
8.961
9.884
10.811
11.677
12.166
12.586
11.801
11.913
12.027
12.131
12.224
12.283
12.454
12.528
12.628
12.744
12.870

Indirect business tux and nontax liability plus business transfer payments less subsidies.
With inventory valuation and capital consumption adjustments.
Sources: Department of Commerce (Bureau of Economic Analysis) and Department of Labor
(Bureau of Labor .Statistics).
4

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

Period

National
income

Compensation of
employeesl

Proprietors' income with
inventory v(dilation and
capital co isumption
adjust ments

Farm

1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1982:

III
IV
1983: I
II
Ill
IV
1984: I
II
Ill
IV
1985: I '
1

931.4
1,036.3
1,152.1
1,301.1
1,458.1
1,599.6
1,765.4
1,864.2
1,984.9
2,173.2
1,876.3
1,888.7
1,921.3
1,962.4
2,000.7
2,055.4
2,113.4
2,159.2
2,191.9
2,228.1
2,272.7

1,239.4
1,379.2
1,550.5
1,760.3
1,966.7
2,116.6
2,363.8
2,446.8
2,646.7
2,959.9
2,452.4
2,468.6
2,527.0
2,609.0
2,684.4
2,766.5
2,873.5
2,944.8
2,984.9
3,036.3
3,076.5

Corporate p rofits with inv •ntory valuation and capital < onsumption
adjustments

Rental
income of
persons
with
capital
consumption
adjustment

Nonfarm

24.6

65.4

19.1
19.1
26.3
31.9
21.8
31.5
21.8
13.8
28.2
12.7
25.4
16.4
10.1
11.2
17.3
32.5
23.4
27.3
29.4
25.7

75.0
84.8
92.2
100.2
95.6
93.7
89.2
107.9
126.2
89.5
92.1
98.3
106.8
112.1
114.6
122.5
126.3
126.4
129.7
134.0

Profits w ith inventory valuation
adjustme nt and withou t capital
consiimption adjust tient

Capital
consump-

Total

23.0
23.5
24.8
26.6
27.9
31.5
42.3
51.5
58.3
62.5
52.9
57.0
57.7
59.0
56.2
60.4
61.0
62.0
63.0
64.1
64.8

110.5
138.1
167.3
192.4
194.8
175.4
189.9
159.1
225.2
285.7
163.3
151.6
179.1
216.7
245.0
260.0
277.4
291.1
282.8
291.6
292.3

Inventory
valuation
adjustment

Profits

Total

adjustment

-11.6
-14.7
-16.2
-24.0
-43.1
-42.9
-23.6
-9.5
-11.2
-5.7
-10.1
-12.6
-4.3
-12.1
-19.3
-9.2
-13.5

132.1
166.3
194.7
229.1
252.7
234.6
221.2
165.5
203.2
235.7
168.9
155.8
161.7
198.2
227.4
225.5
243.3
246.0
224.8
228.7
222.3

120.6
151.6
178.5
205.1
209.6
191.7
197.6
156.0
192.0
230.0
158.8
143.2
157.3
186.1
208.1
216.3
229.8
238.7
224.5
227.1
223.2

Net

interest

-7.3
-.2
-1.6
.9

-10.1
-13.5

-11.3
-12.7
-14.8
-16.3
-7.6
3.1
33.2
55.7
4.5
8.4
21.7
30.6
36.9
43.6
47.6
52.3
58.3
64.5
69.1

84.5
87.2
102.5
121.7
153.8
192.6
241.0
260.9
256.6
284.1
257.7
253.8
254.2
254.2
259.2
258.9
266.8
282.8
293.5
293.4
287.0

Source: Department of Commerce, Bureau of Kconomic Analysis.

Includes employer contributions for social insurance.. (See also p. 5.)

PERSONAL CONSUMPTION EXPENDITURES
[Billions of dollars, except as noted; quarterly data at seasonally adjusted annual rates]

No ddurable go ads

Durable goods
Period

1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1982:

III
IV
1983: I
II
Ill
IV
1984: I
II
Ill
IV
1985: I r.

Total
personal
consumption
expenditures

976.4
1,084.3
1,204.4
1,346.5
1,507.2
1,668.1
1,849.1
1,984.9
2,155.9
2,341.8
2,001.3
2,046.1
2,070.4
2,141.6
2,181.4
2,230.2
2,276.5
2,332.7
2,361.4
2,396.5
2,446.5

Total
durable
goods

Motor
vehicles
and
parts

132.2
156.8
178.2
200.2
213.4
214.7
235.4
245.1
279.8
318.8
244.5
255.0
259.4
276.1
284.1
299.8
310.9
320.7
317.2
326.3
334.8

Source: Department of Commerce, Kureiut of Economic An




55.8
72.6
84.8
95.7
96.6
90.7
101.9
108.7
129.3
149.8
108.1
115.3
115.3
128.4
132.0
141.7
147.7
152.3
148.6
150.7
155.7

Furniture and
household
equipment

53.5
59.1
65.7
72.8
81.8
86.3
92.3
94.4
104.1
117.0
94.5
96.6
99.1
102.4
105.2
109.8
113.0
116.6
116.8
121.8
123.8

Other

22.9
25.2
27.7
31.7
35.1
37.7
41.2
42.1
46.4
51.9
41.9
43.1
45.0
45.3
46.9
48.2
50.3
51.7
51.9
53.8
55.3

Total
nondurable
goods

407.3
441.7
478.8
528.2
600.0
668.8
730.7
757.5
801.7
856.9
762.5
770.6
775.2
796.9
811.7
823.0
841.3
858.3
861.4
866.5
877.3

Food

213.6
230.6
249.8
275.9
311.6
345.1
373.9
392.8
416.5
443.6
396.0
400.3
406.7
413.6
420.5
425.1
433.9
442.1
448.6
449.8
457.3

Retail sal es of new
passeng er cars
(millions of units)

Clothing
and
shoes

Gasoline
and oil

69.6
75.3

40.4
44.0
48.1
51.2
66.6
84.8
94.6
90.4
90.0
91.4
89.9
89.6
86.7
89.5
92.1
91.7
92.0
92.8
90.0
90.8
89.9

82.6
92.4
99.1
104.6
114.3
118.8
127.0
140.2
119.0
120.0
121.6
127.1
126.8
132.5
136.1
142.2
139.3
143.2
145.5

Services
Other

83.7
91.9
98.2
108.8
122.8
134.3
147.9
155.6
168.2
181.7
157.6
160.6
160.3
166.7
172.2
173.6
179.3
181.2
183.6
182.7
184.6

Domestics

437.0
485.7
547.4
618.0
693.7
784.5
883.0
982.2
1,074.4
1,166.1
994.2
1,020.6
1,035.8
1,068.6
1,085.7
1,107.5
1,124.4
1,153.7
1,182.8
1,203.8
1,234.4

7.0
8.5
9.0
9.2
8.2
6.6
6.2
5.8
6.8
8.0
5.6
6.0
6.0
6.9
6.9
7.4
8.1
8.2
7.9
7.6
8.5

Imports

1.6
1.5
2.1
2.0
2.3
2.4
2.3
2.2
2.4
2.4
2.2
2.5
2.3
2.3
2.3
2.6
2.3
2.4
2.4
2.7
2.4

SOURCES OF PERSONAL INCOME
Persona! income declined $16.5 billion (annual rate) in May, following a rise of $32.6 billion in April. The May and
April changes were affected by two special factors in April—an unusually large increase in subsidy payments to
farmers (based on new data) and a retroactive wage payment to Postal Service employees. Excluding these special
factors, personal income increased $13.3 billion in May and $8.6 billion in April.
BILLIONS OF DOUARS*(RATIO SCALE)

BILLIONS Of DOLLARS*(RATIO SCALE)
3,600

3,600

WAGE AND SALARY DISBURSEMENTS

200 —=

200

* SEASONALLY ADJUSTED ANNUAL RATES
SOURCE: DEPARTMENT Of COMMERCE

COUNCIL OF ECONOMIC ADVISERS

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

Period

1975
1976
1977
1978
1979

1980
1981
1982
1983
1984
1984: May
June
July

Aug
Sept

Oct
Nov
Dec

1985:

Jan '.
Feb r.
Mar r
Aprr

May"
1

Total
personal
income

Proprietor ' income 3

Wage and
ments

1

income

Farm

Personal
dividend
income

Personal
interest
income

Transfer
payments 5

Less:
Personal
contributions
for social
insurance

Nonfarm
personal
income 6

,265.0
,391.2
,540.4
,732.7
,951.2
2,165.3
2,429.5
2,584.6
2,744.2
3,012.1

806.4
889.9
983.2
1,106.3
1,237.6
1,356.7
1,493.1
1,568.7
1,659.2
1,804.0

64.5
75.9
89.4
102.5
114.9
128.0
140.0
155.5
173.1
195.5

24.6
19.1
19.1
26.3
31.9
21.8
31.5
21.8
13.8
28.2

65.4
75.0
84.8
92.2
100.2
95.6
93.6
89.2
107.9
126.2

23.0
23.5
24.8
26.6
27.9
31.5
42.3
51.5
58.3
62.5

29.9
36.5
39.6
45.3
50.8
56.8
64.3
66.5
70.3
77.7

123.2
132.5
152.8
179.4
218.7
266.0
331.8
366.6
376.3
433.7

178.3
194.3
207.9
223.8
250.3
297.6
337.3
376.1
405.0
416.7

50.4
55.5
61.1
69.8
81.1
88.7
104.5
111.4
119.6
132.5

1,229.1
1,359.3
1,506.5
1,689.7
1,899.3
2,119.5
2,371.2
2,532.1
2,701.1
2,954.3

2,978.8
3,006.5
3,027.7
3,045.8
3,068.3
3,079.3
3,097.5
3,111.8

1,789.8
1,804.3
1,812.4
1,816.9
1,829.1
1,830.9
1,847.2
1,864.9

193.5
195.3
196.7
198.1
199.5
201.0
202.5
203.9

21.4
23.5
26.5
27.4
28.0
29.1
28.0
31.0

126.2
127.1
126.0
126.1
127.1
129.3
129.6
130.2

62.0
62.4
62.6
62.9
63.3
63.7
64.1
64.5

77.1
77.6
78.0
78.2
79.4
79.8
80.2
80.5

425.6
432.9
441.4
449.5
457.1
456.8
456.0
455.5

414.8
415.9
417.1
419.9
418.7
422.8
425.1
417.6

131.5
132.5
133.0
133.3
134.1
134.2
135.2
136.3

2,928.1
2,953.5
2,971.6
2,988.5
3,010.2
3,019.9
3,039.0
3,050.1

3,129.2
3,146.0
3,156.2
3,188.7
3,172.2

1,872.5
1,880.9
1,894.7
1,903.7
1,909.3

205.1
206.3
207.5
208.8
210.2

26.4
28.2
22.6
42.2
15.0

132.0
134.2
135.9
137.7
138.6

64.6
64.7
64.9
65.3
65.7

81.0
81.4
81.9
82.3
82.5

455.8
456.1
456.2
456.9
457.8

437.6
440.4
439.6
439.7
441.3

145.8
146.3
147.2
147.8
148.3

3,073.2
3,085.1
3,104.4
3,116.1
3,121.4

The total of wage and salary disbursements and other labor income differs from compensation of
employees (see p. 4) in that it excludes employer contributions for social insurance and the excess of
wage accruals over wage disbursements.
* Consists of employer contributions to private pension, health, and welfare funds; workers' injury
compensation; directors' fees; and a few other minor items.
3
With inventory valuation and capital consumption adjustments.




Nonfarm

Rental
income of
persons 4

4

With capital consumption adjustment.
Consists mainly of social insurance benefits, direct relief, and veterans payments.
Personal income exclusive of farm proprietors' income, farm wages, farm other labor income,
and agricultural net interest.
5

6

Source: Department of Commerce, Bureau of Economic Analysis.

DISPOSITION OF PERSONAL INCOME
Real per capita disposable income declined in the first quarter of 1985 because of delays in the refund payments
of Federal income taxes. Excluding the delays, real income rose.
BILLIONS OF DOLLARS * (RATIO SCALE)
2,800

BILLIONS OF DOLLARS * (RATIO SCALE)
2,800

4,000

4,000

3,000

3,000
1977
• SEASONALLY ADJUSTED ANNUAL RATES
SOURCE- DEPARTMENT OF COMMERCE

Period

Personal
income

Less:
Personal
tax and
nontax

COUNCIL Of ECONOMIC ADVISERS

Equals:
Disposable
personal
income

Less:
Personal
outlays '

Equals:
Personal
saving

Per c apita
disposable personal
incc me
Current
dollars

1972
dollars

1,168.6
1,265.0
1,391.2
1,540.4
1,732.7
1,951.2
2,165.3
2,429.5
2,584.6
2,744.2
3,012.1

170.2
168.9
196.8
226.4
258.7
301.0
336.5
387.7
404.1
404.2
435.3

998.3
1,096.1
1,194.4
1,314.0
1,474.0
1,650.2
1,828.9
2,041.7
2,180.5
2,340.1
2,576.8

Current
dollars

1972
dollars

Do lars

B llions of dol ars
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984

Per capita personal
consuroption
expenc itures

913.2
1,001.8
1,111.9
1,236.0
1,384.6
1,553.5
1,718.7
1,904.7
2,044.5
2,222.0
2,420.7

85.1
94.3
82.5
78.0
89.4
96.7
110.2
137.4
136.0
118.1
156.1

4,667
5,075
5,477
5,965
6,621
7,331
8,032
8,874
9,385
9,977
10,887

4,009
4,051
4,158
4,280
4,441
4,512
4,487
4,561
4,555
4,670
4,939

Percent
change in
real per
capita
disposable

Saving as
percent of
disposable
personal

Population
(thousands) 2

Per cent

4,152
4,521
4,972
5,468
6,048
6,695
7,326
8,037
8,543
9,192
9,894

3,566
3,609
3,774
3,924
4,057
4,121
4,092
4,131
4,146
4,303
4,489

1.0
2.6
2.9
3.8
1.6
-.6
1.6
-.1
2.5
5.8

8.5
8.6
6.9
5.9
6.1
5.9
6.0
6.7
6.2
5.0
6.1

213,898
215,981
218,086
220,289
222,629
225,106
227,694
230,068
232,351
234,542
236,685

-1.7

Seas jnally adju sted annual rates

1982: HI
IV

2,594.3
2,639.5

398.5
402.0

2,195.8
2,237.5

2,061.3
2,107.3

134.5
130.2

9,439
9,593

4,548
4,578

8,603
8,773

4,145
4,186

0.2
2.7

6.1
5.8

232,634
233,230

1983: I
II

m

2,662.8
2,714.4
2,763.3
2,836.5

401.4
411.6
395.8
407.9

2,261.4
2,302.9
2,367.4
2,428.6

2,133.4
2,206.1
2,248.4
2,300.0

128.0
96.7
119.0
128.7

9,675
9,832
10,082
10,318

4,591
4,619
4,694
4,776

8,858
9,143
9,290
9,475

4,203
4,296
4,325
4,386

1.1
2.5
6.7
7.2

5.7
4.2
5.0
5.3

233,742
234,230
234,811
235,385

n
m
IV

2,920.5
2,984.6
3,047.3
3,096.2

418.3
430.3
440.9
451.7

2,502.2
2,554.3
2,606.4
2,644.5

152.5
2,349.6
144.-8
2,409.5
164.1
2,442.3
2,481.5 ' 163.0

10,608
10,806
11,000
11,133

4,865
4,930
4,965
4,996

9,651
9,869
9,966
10,089

4,427
4,502
4,499
4,527

7.7
5.5
2.9
2.5

6.1
5.7
6.3
6.2

235,875
236,369
236,950
237,544

Ir

3,143.8

489.0

2,654.8

2,536.2

118.6

11,154

4,965

10,279

4,576

4.5

238,017

IV
1984: I

1985:

1
Includes personal consumption expenditures, interest paid by consumers to business, and personal transfer payments to foreigners (net).




2

-2.5

Includes Armed Forces abroad. Annual data are averages of quarterly data, which are averages
for the period.
Source: Department of Commerce (Bureau of Economic Analysis and Bureau of the Census).

FARM INCOME
In the first quarter of 1985, according to preliminary estimates, gross farm income fell $13.4 billion (annual rate)
and net farm income fell $12.0 billion.
BILLIONS OF DOLLARS * (RATIO SCALE)

BILLIONS OF DOLLARS * (RATIO SCALE)

200

200

160

160
GROSS FARM INCOME

120

120

80

80

60

60

40

40
NET FARM INCOME

/\
-*-i
\\ji \\

20

\l

1 1 1

10

1977

1 1
1978

1979

1 1 1
1980

1

1

20

1 1 1

I I I

1

1982

1981

1983

• SEASONALLY ADJUSTED ANNUAL DATES
SOURCE, DEPARTMENT OF AGRICULTURE

1984

10
1985

COUNCIL OF ECONOMIC ADVISERS

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

Income of farm operators from farmi "g
(iross farm incom s
Period

Net farn income

Cas h marketing receipts
Total 1
Total

Livestock and
products

Crops

Value of
inventory
changes 2

Production
expenses

Current
dollars

1967 dollars *

102.9
108.7
127.2
150.4
150.2
167.9
161.8
151.4
171.6

95.4
96.2
112.9
131.8
140.5
142.6
144.8
138.7
141.1

46.3
47.6
59.2
68.6
67.8
69.2
70.1
69.2
71.2

49.0
48.6
53.7
63.2
72.7
73.3
74.6
69.5
69.9

-1.5
1.1
.8
4.9
-5.5
7.9
-2.6
-11.7
7.1

82.7
88.9
99.5
118.1
128.9
136.9
139.5
135.3
140.8

20.1
19.8
27.7
32.3
21.2
31.0
22.3
16.1
30.8

11.8
10.9
14.2
14.9
8.6
11.4
7.7
5.4
9.9

153.3
147.3
148.5
156.6

144.6
138.3
143.7
128.3

70.4
68.7
67.6
70.1

74.2
69.6
76.1
58.2

-11.4
-14.4
-16.8
-4.4

135.6
135.2
134.7
135.8

17.7
12.1
13.8
20.8

6.0
4.1
4.6
6.9

1984: I

169.8
165.8
176.0
174.9

134.2
138.9
147.8
143.6

73.0
70.4
69.2
72.2

61.2
68.5
78.6
71.4

2.2
8.1
9.8
8.2

139.2
141.5
141.4
141.2

30.6
24.3
34.6
33.7

10.0
7.8
11.1
10.7

1985:1"

161.5

137.6

71.7

65.9

2.9

139.8

21.7

6.8

1976
1977
1978
1979
1980

1981
1982
1983
1984"
1983: I
II

m
IV

n
m
rv

1

Cash marketing receipts and inventory changes plus Government payments, other farm cash
income, and nonmoncy income furnished by farms.
2
Physical changes in end-of-ycar inventor}' of crop and livestock commodities valued at average
prices during the year.




3

Income in current dollars divided by the consumer price index (Department of Labor).

Source: Department of Agriculture, except as noted.

CORPORATE PROFITS
In the first quarter of 1985, according to revised estimates, corporate profits before tax fell $6.4 billion (annual
rate) and after-tax profits fell $4.0 billion.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
320

280

240

200

40

1984
SOURCE- DEPARTMENT OF COMMERCE

1985

COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars; quarterly data at seasonally adjusted annual rates]
Pr >fits (before tiax) with inve ntory valuati MI adjustment >

Profits after taX

Doinestic industiies

Total

1983:

1
2

Total

Financial

Total 3

80.4
107.6
137.4
163.4
185.4
179.0
161.9
173.2
133.6
167.2
207.1

15.0
11.8
17.1
23.1
31.0
30.3
26.9
19.5
19.6
29.6
27.8

65.4
95.8
120.3
140.3
154.4
148.6
134.9
153.7
114.0
137.6
179.2

HI
IV

158.8
143.2

136.5
119.7

21.0
24.9

115.5
94.8

n
m

I

157.3
186.1
208.1
216.3

134.9
162.4
180.6
190.8

28.4
32.0
29.5
28.5

106.5
130.4
151.1
162.3

n
m
IV

229.8
238.7
224.5
227.1

204.1
217.5
200.2
206.4

28.7
28.9
26.6
27.1

175.4
188.6
173.6
179.3

Ir

223.2

202.5

28.0

174.6

IV
1984: I

1985:

Tax
liability

12.5
21.3
22.4
26.6
26.9
27.1
23.6
31.8
25.9
33.4
45.9

136.7
132.1
166.3
194.7
229.1
252.7
234.6
221.2
165.5
203.2
235.7

51.6
50.6
63.8
72.7
83.2
87.6
84.8
81.1
60.7
75.8
89.8

85.1
81.5
102.5
122.0
145.9
165.1
149.8
140.0
104.8
127.4
145.9

24.0
24.1

168.9
155.8

61.9
55.0

107.0
100.8

25.3
33.0
35.9
39.5

161.7
198.2
227.4
225.5

59.1
74.8
84.7
84.5

102.6
123.4
142.6
141.1

40.6
47.0
46.8
49.4

243.3
246.0
224.8
228.7

92.7
95.8
83.1
87.7

150.6
150.2
141.7
141.0

45.5

222.3

85.3

137.0

2

96.7
120.6
151.6
178.5
205.1
209.6
191.7
197.6
156.0
192.0
230.0

1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1982:

Profits
before tax

Nonfinancial

Period

See p. 4 for profits with inventor}* valuation and capital consumption adjustments.
Includes rest of the world, not shown separately.




Manufacturing

39.0
52.6
69.2

78.3
86.9
85.6
72.9
84.9
54.5
65.2
85.5
60.4
42.4
44.9
59.3
73.8
82.9
89.8
92.3
78.3
81.6
77.9

Whole
sale and
retail
trade

3

Total

Dividends

29.9
30.8
37.4
40.8
47.0
52.7
58.6
66.5
69.2
72.9

80.5
69.0
70.2
71.1
71.7
73.3
75.4
77.7
79.9
81.3
83.1
84.5

Includes industries not shown separately.

Source: Department of Commerce, Bureau of Economic Analysis.

Undistributed
profits

Inventory
valuation
adjustment

55.2
50.7
65.1
81.2
98.9
112.4
91.2
73.5
35.6
54.5
65.4

-40.0
-11.6
-14.7
-16.2
-24.0
-43.1
-42.9
-23.6
-9.5
-11.2
-5.7

38.1
30.6

-10.1
-12.6

31.4
51.7
69.3
65.6
72.9
70.2
60.3
58.0
52.5

4g

-12.1

-19.3
-9.2
-13.5
-7.3
-.2
-1.6
.9

GROSS PRIVATE DOMESTIC INVESTMENT
According to revised estimates for the first quarter of 1985, business fixed investment rose $3.2 billion (annual
rate) and residential investment outlays rose $1.7 billion. There was a $40.7 billion increase in inventories following
an increase of $36.6 billion in the fourth quarter of 1984.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

800

800

SEASONALLY ADJUSTED AN «JAL RATES

—
700

—

—

-^-

600

GRO<>S PRIVATE DO MESTIC
INVESTMENT

-

AOO

O

~~

\

500

500

r"—"nr^

^

^-i

400

^^

300

—

^^

1

•**"

400

^**

NONRESIDE NTIAL^
__„ — ""
FIXED INVES1FMENT
V . •••".^ M ••**** "

r-/

/

-^

** "

mf

—

""'"— — — — ,

^

300

—

.„..-"""

200

200

RE!5IDENTIAL
FIXED INVESTMENT

—

..— — — —

—

^-"X.

—

..-'•'*

100

CHANGE N BUSINESS
INVES(TORIES
-

—

'—-x y\ \ \
\

^

—^

1 1 1

-100

1977

1

i

1

1978

1

i

1

1979

1 i i
1980

1

1
1981

i

0

-•-'

! 1 1
1982

1 i !

! i 1

1984

1985

1983

-100

COUNCIL OF ECONOMIC ADVISERS

SOURCE. DEPARTMENT OF COMMERCE

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

1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1982: ELI

rv

1983: I

n
m
rv

1984: I

n
m
rv

1985: I r

private
domestic
investment

228.7
206.1
257.9
324.1
386.6
423.0
401.9
484.2
414.9
471.6
637.8
415.9
376.2
405.0
449.6
491.9
540.0
623.8
627.0
662.8
637.8
646.8

Total

156.6
157.7
174.1
205.2
248.9
290.2
308.8
353.9
349.6
352.9
425.7
342.2
339.3
334.6
339.3
353.9
383.9
398.8
420.8
435.7
447.7
450.9

Source: Department of Commerce, Bureau of Economic Analysis.




Structures

55.9
55.4
58.8
64.4
78.7
98.3
110.9
135.3
142.1
129.7
150.4
138.4
138.4
130.4
125.6
126.2
136.6
142.2
150.0
151.4
157.9
162.9

Producers'
durable
equipment

100.7
102.3
115.3
140.8
170.2
191.9
197.9
218.6
207.5
223.2
275.3
203.8
201.0
204.2
213.6
227.8
247.3
256.7
270.7
284.2
289.7
288.0

Change ii business
inven .ones

Residential fix ed investment

Nonresk ential fixed ini estment
Period

Total

57.9
55.3
72.0
95.8
111.2
118.6
102.9
104.3
91.4
132.2
153.9
89.0
97.9
113.3
129.8
142.3
143.4
151.2
155.6
155.3
153.5
155.2

Nonfarm
structures

54.8
52.4

68.8
92.0
107.0
114.0
98.1
99.8
86.6
127.6
148.8
84.5
92.5
108.9
125.3
137.7
138.7
146.4
150.5
150.1
148.3
150.0

Farm
structures

Producers
durable
equipment

1.3
1.0
1.1
1.5
1.7
1.7
1.8
1.3
1.5
1.0
1.1

1.8
1.9
2.1
2.3
2.5
2.9
3.0
3.2
3.3
3.6
4.0

1.3
2.1

3.3
3.3
3.4
3.5
3.7
3.8

1.0
.9
.9
.9
.9
1.0
1.2
1.0
1.0

3.9
4.1
4.0
4.1
4.2

Total

14.1

-6.9
11.8
23.0
26.5
14.3
-9.8
26.0
-26.1
-13.5
58.2
-15.3
61.1
42.9
-19.4
4.3
12.7
73.8
50.6
71.8
36.6
40.7

Nonfarm

16.0
-10.5

13.9
21.9
25.4
8.6
-4.5
18.2
-24.0
-3.1
49.6
-11.1
-54.3
-32.6
-5.4
11.6
14.1
60.6
47.0
63.7
27.2
34.1

EXPENDITURES FOR NEW PLANT AND EQUIPMENT
According to the Commerce Department April-May 1985 survey, business spending for new plant and equipment
for the year 1985 is expected to be 9.2 percent above the 1984 level. Spending in 1984 was up 16.0 percent
over the 1983 level;
BILLIONS OF DOLLARS (RATIO SCALE)

BILLIONS OF DOLLARS (RATIO SCALE)
500

suu

5EA50 NALIY ADJUSTED AN ^UAL RATES

400

^—^y,-, ~——^_

300

^^

r"""H

^—'

"

""*"""*"*"••••»
"-""7" URING-^
TK

..— -

„.
-,
M> ^NUFACTURIN 3

—

,»**

^-->

--"^

"••*'"**' ""

•>oo

-.*-''*'

3NMANUFACT

*.-*••"""

»•****

60

».•••""•*

S"

^^1

.'

?no
—

r-^

200

400

"

-**-

ALL INDUST ^IES

^.'
100

.-"'""

—
RO
—

-•''^

—

-

40

I i i

\

\

\

1978

1977

\

\ \
1979

1

1

1

1

1980

1

1 1
1981

1 1
1982

\

\ \
1983

_t/ SURVEYED QUARTERLY
_£/SEE FOOTNOTE 4 BELOW
SOURCE: DEPARTMENT OF COMMERCE

i ii
1984

iVl"
1985

COUNCIL OF ECONOMIC ADVISERS

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

Industries surveyed < uarterly
n

M anufacturin g
Period

1977
1978
1979
1980

All
industries

Total

Durable
goods

No imanufactur g
able
goods

Total1

184.82
217.76
254.96
282.80
315.22
310.58
304.78
353.54
386.10

67.48
78.58
95.92
112.33
126.54
120.68
116.20
138.38
155.98

32.77
39.46
48.50
55.36
59.81
55.35
53.08
65.95
75.24

34.71
39.13
47.42
56.96
66.73
65.33
63.12
72.43
80.74

117.34
139.18
159.04
170.47
188.68
189.89
188.58
215.15
230.12

n
m...

289.68
294.76
309.25
325.45

111.62
112.70
116.75
123.74

50.88
49.73
57.56

60.74
62.97
62.59
66.19

178.06
182.06
192.51
201.71

n
m...

337.48
348.34
361.12
367.21

129.97
135.33
142.03
146.20

61.26
63.12
68.31
71.13

68.71
72.21
73.72
75.07

207.51
213.01
219.09
221.01

371.16
385.31
392.61
395.33

145.65
155.55
160.79
161.93

69.87
75.72
77.83
77.52

75.78
79.83
82.96
84.41

225.51
229.76
231.82
233.40

1981
1982
1983
1984
1985*

1983: I

IV...
1984: I
IV...

1985: I 4

n ..4
m4
IV

1

54.15

Mining

9.81
11.22
12.81
15.99
21.39
20.05
15.19

16.88
16.06
14.94
13.90
15.66
16.27
17.61
16.01
16.96
16.93
15.66
16.47
16.19
15.90

Excludes forestry, fisheries, and agricultural services; medical services; professional services;
social services and membership organizations; and real estate, which, effective with the April-May
1984 survey, are no longer surveyed quarterly. See last column ("nonmanufacturing surveyed annually") for data for these industries.
* "All industries" plus the part of nonmanufaeturing that is surveyed annually.
3
Consists of forestry, fisheries, and agricultural services; medical services; professional services;

10



Transportation

Public
utilities

Commercial
and
other

Total
nonbusiness2
208.15
245.34
284.94
314.47
349.26
347.47
343.35
398.09

No imanufactur ing
Manufacturing

Total

Surveyed
quarter-

iy
140.67
166.76
189.02
202.15
222.72
226.79
227.15
259.71

12.20
13.36
16.05
16.60
15.84
14.79
13.97
16.49
17.65

27.83
31.50
35.63
37.74
41.21
45.43
44.96
47.39
47.74

67.51
83.09
94.56
100.14
110.24
109.63
114.45
134.39
148.68

12.85

44.78
44.46
44.77
45.86

105.50
110.15
117.88
124.30

111.62
112.70
116.75
123.74

178.06
182.06
192.51
201.71

47.13
47.89
47.89
46.67

127.83
132.07
136.55
141.10

129.97
135.33
142.03
146.20

207.51
213.01
219.09
221.01

48.46
47.71
46.76
48.03

145.17
148.42
149.56
151.57

145.65
155.55
160.79
161.93

225.51
229.76
231.82
233.40

13.55
14.20
15.28
14.95
17.04
17.69
16.29
16.22
17.16
19.31
17.90

67.48
78.58
95.92
112.33
126.54
120.68
116.20
138.38
155.98

117.34
139.18
159.04
170.47
188.68
189.89
188.58
215.15
230.12

Surveyed
annually 3
23.33
27.58
29.98
31.68
34.04
36.89
38.56
44.55

social services and membership organizations; and real estate.
4
Planned capital expenditures as reported by business in April and May 1985, corrected for
NOTE.—See Survey of Current Business, February 1985, for details on revised series.
Source: Department of Commerce, Bureau of Economic Analysis.

EMPLOYMENT, UNEMPLOYMENT, AND WAGES
STATUS OF THE LABOR FORCE
Seasonally adjusted civilian employment and unemployment were little changed in May.
MILLIONS OF PERSONS*
116

MILLIONS OF PERSONS*

1977

1985

•16 YEARS OF AGE AND OVER
SOURCE: DEPARTMENT OF LABOR

COUNCIL OF ECONOMIC ADVISERS

[Thousands of persons 16 years of age and over, except as noted; monthly data seasonally adjusted except as noted]

Period

Noninstitutional
population
including
resident
Armed
Forces
NSA

Unemplc yment

Civilian ennployment
Rf>ei
jvesi-

uent
Armed
Forces
NSA

T hn f
•

0rCe

, ,.

including
resident
Armed
Forces

Employment
including
resident
Armed
Forces

Nonagricultural
Civilian
labor force

Total

Agricultural

Total

Part-time
for
economic
reasons *

Total

15
weeks
and
over

Labor bree
particip ation
rate (pe rcent)
Total 2

Civilian 3

1979
1980
1981
1982
1983
1984

166,460
169,349
171,775
173,939
175,891
178,080

1,597
1,604
1,645
1,668
1,676
1,697

106,559
108,544
110,315
111,872
113,226
115,241

100,421
100,907
102,042
101,194
102,510
106,702

104,962
106,940
108,670
110,204
111,550
113,544

98,824
99,303
100,397
99,526
100,834
105,005

3,347 95,477
3,364 95,938
3,368 97,030
3,401 96,125
3,383 97,450
3,321 101,685

3,373
4,064
4,499
5,852
5,997
5,512

6,137
7,637
8,273
10,678
10,717
8,539

1,241
1,871
2,285
3,485
4,210
2,737

64.0
64.1
64.2
64.3
64.4
64.7

63.7
63.8
63.9
64.0
64.0
64.4

1984: May
June....
July ....
Aug
Sept ....
Oct
Nov
Dec

177,813
177,974
178,138
178,295
178,483
178,661
178,834
179,004

1,690
1,690
1,698
1,712
1,720
1,705
1,699
1,698

115,412
115,309
115,566
115,341
115,484
115,721
115,773
116,162

106,852
107,081
107,075
106,860
107,114
107,354
107,631
107,971

113,722
113,619
113,868
113,629
113,764
114,016
114,074
114,464

105,162
105,391
105,377
105,148
105,394
105,649
105,932
106,273

3,367
3,368
3,333
3,264
3,319
3,169
3,334
3,385

101,795
102,023
102,044
101,884
102,075
102,480
102,598
102,888

5,377
5,549
5,482
5,384
5,449
5,483
5,413
5,596

8,560
8,228
8,491
8,481
8,370
8,367
8,142
8,191

2,833
2,630
2,672
2,621
2,605
2,527
2,428
2,374

64.9
64.8
64.9
64.7
64.7
64.8
64.7
64.9

64.6
64.5
64.5
64.3
64.4
64.4
64.4
64.6

1985: Jan
Feb
Mar
Apr
May

179,081
179,219
179,368
179,501
179,649

1,697
1,703
1,701
1,702
1,705

116,572
116,787
117,215
117,073
117,078

108,088
108,388
108,820
108,647
108,665

114,875
115,084
115,514
115,371
115,373

106,391
106,685
107,119
106,945
106,960

3,320
3,340
3,362
3,428
3,312

103,071
103,345
103,757
103,517
103,648

5,389
5,077
5,400
5,374
5,617

8,484
8,399
8,396
8,426
8,413

2,243
2,416
2,400
2,377
2,247

65.1
65.2
65.3
65.2
65.2

64.8
64.8
65.0
64.9
64.8

1
Persons at work. Economic reasons include slack work, material shortages, inability to find fulltime work, etc.
2
Labor force as percent of noninstitutional population (both including resident Armed Forces).




3

Civilian labor force as percent of civilian noninstitutional population.

NOTE.—NSA indicates data are not .seasonally adjusted.
Source: Department of Labor, Bureau of Labor Statistics.

11

SELECTED UNEMPLOYMENT RATES
In May, the seasonally adjusted overall unemployment rate, which includes resident Armed Forces in the labor
force, was 7.2 percent for the fourth month. The unemployment rate for civilian workers was also unchanged in
May, remaining at the February-April level of 7.3 percent.
PERCENT* (SEASONALLY ADJUSTED)

PERCENT* (SEASONALLY ADJUSTED)

25

25

BLACK
AND OTHEI?
.
J
t" **"" \
**\
\

20

r'
*»

15

20
v

\

/-

'A

v-'"'~lAGERS
TEEN

0<•-1")

\
^.

•• \

»'

\,-/\/ \

•

i

15

\/\

N

F
1

,'V

*

*

'

1

AAEN 20 YEAR S
ALLC VILIAN WOR KERS

s*

10

^-x

AND OVER

Kv

10

s-'~'

•ww

WHITE

— -^/

"""^•— -•«,.

we MEN 20 YEA RS

*• ^~

AND OVER

lllllllllil lllllllllil
1981

1982

iniiliiiii

lllllllllil lllilllllli lllllllllil
1984

1983

1985

1981

lllllllllil lllllllllil lllllllllil lllllllllil
1982

1984

1983

1985

'UNEMPLOYMENT AS PERCENT OF CIVILIAN LABOR FORCE IN GROUP SPECIFIED.
COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF LABOR

[Monthly data seasonally adjusted]
Unemp! oyment ra te (pereen , of civilian labor force in group)

Period

Unemployment
rate, all
workers 1

By sex and ag"
civilian
workers

Men
20 years
and over

Women
20 years
and
over

By s elected group s

By race

All
Both
sexes
16-19
years

Black aiid other
White

Experienced
wage and
salary
workers

Married
men,
spouse
present

Total

Black

12.3
14.3
15.6
18.9
19.5
15.9

5.5
6.9
7.3
9.3
9.2
7.1

2.8
4.2
4.3
6.5
6.5
4.6

Women
who
maintain
families

5.8
7.0
7.5
9.5
9.5
7.4

5.8
7.1
7.6
9.7
9.6
7.5

4.2

1980
1981
1982
1983
1984

5.9
6.3
8.8
8.9
6.6

5.7
6.4
6.8
8.3
8.1
6.8

16.1
17.8
19.6
23.2
22.4
18.9

5.1
6.3
6.7
8.6
8.4

6.5

11.3
13.1
14.2
17.3
17.8
14.4

1984: MayJune..
July ..
Aug...
Sept ..
Oct....
Nov...
Dec...

7.4
7.1
7.3
7.4
7.2
7.2
7.0
7.1

7.5
7.2
7.5
7.5
7.4
7.3
7.1
7.2

6.6
6.4
6.5
6.4
6.4
6.2
6.2
6.3

6.8
6.5
6.8
7.0
6.6
6.9
6.5
6.4

19.0
18.1
18.4
18.4
19.0
18.7
17.8
18.8

6.5
6.3
6.3
6.4
6.3
6.3
6.1
6.2

14.3
13.7
14.8
14.3
13.8
13.8
13.7
13.6

16.0
15.2
16.6
15.8
15.1
15.3
15.1
15.0

7.0
6.7
7.1
7.0
7.0
6.9
6.8
6.8

4.6
4.6
4.5
4.5
4.6
4.5
4.4
4.4

10.0

1985: Jan...
Feb ...
Mar...
Apr ...
May...

7.3
7.2
7.2
7.2
7.2

7.4
7.3
7.3
7.3
7.3

6.3
6.3
6.2
6.3
6.1

6.8
6.7
6.7
6.8
6.9

18.9
18.4
18.2
17.7
18.9

6.4
6.2
6.2
6.3
6.2

13.7
14.6
13.9
13.9
14.1

14.9
16.3
15.2
15.3
15.6

6.9
6.8
6.8
6.8
6.8

4.6
4.4
4.2
4.3
4.0

10.0
11.0
10.2
10.8
10.9

1979

1

Unemployed as percent of total labor force including resident Armed Forces.
Aggregate hours lost by the unemployed and persons on part time for economic reasons as percent of potentially available labor force hours.
2

12



8.3
9.2
10.4
11.7
12.2
10.3

9.8
9.8
10.3
10.1
10.4
10.8

9.6

Source: Department of Labor, Bureau of Labor Statistics.

Fulltime
workers

Parttime
workers

5.3
6.9
7.3

8.8
8.8

Labor
force
time lost
(percent) 2

6.3
7.9
8.5

9.5
7.2

9.4
10.5
10.4
9.3

7.2
6.7
7.2
7.1
7.1
7.1
6.9
6.9

9.4
10.0
9.6
9.6
9.3
9.1
8.6
8.8

8.6
8.4
8.5
8.5
8.5
8.4
8.2
8.3

7.1
7.1
6.9
6.9
6.8

9.3
8.7
9.6
9.7
10.3

8.2
8.2
8.2
8.2
8.3

9:6

11.0

10.9
8.6

SELECTED MEASURES OF UNEMPLOYMENT AND UNEMPLOYMENT
INSURANCE PROGRAMS
In May, the percentage of unemployed persons who had been out of work for less than 5 weeks, for 5-14 weeks,
and for 15-26 weeks rose, while the percentage unemployed for 27 weeks and over fell. Both the mean and
median duration of unemployment fell.
PERCENT DISTRIBUTION*

PERCENT DISTRIBUTION*

70

r

REASON FOR UNE/V\PLOYMEN1
/V

riO
*

\r

DB LOSERS^

50 £~~f

^ ^'"V^..

Pvt
\

40

30

*"~~~\l'

70

20

*

R EENTRANTS

,s-~\ •«
\

-''

--,)""

N! W ENTRANTs
\
Jh /
*r

10 — "'

10 —

/

?\.

^~ ' •*. -x^

>>^

V

i**N««j^

^^

JOB LEAVEI S
0 Jllllllltll H|l||||||l !|l|||lllll
1981
1982
1983
1984

llillllllll

1985

1981

llillllllll
1985

•SEASONALLY ADJUSTED
COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF LABOR

[Monthly data seasonally adjusted, except as noted]

Re ison for inemployment:
percent c :stributio i 1

Dur ation of i nemplo; incut

Period

Unemployment
(thousands)

P srcent dis tribution
Less
than
5
weeks

5-14
weeks

15-26
weeks

State
progra ms

Insured
unemployment,

Number of
ks

27
weeks
and
over

Average
(mean)

Medi-

Job
losers

Job
leavers

Reentrants

New
entrants

Insured
unemployment

Initial
claims

regular
programs
(unadjusted) 2

Special
ployment
benefit
claims
(unad-

Weekly av< rage, thousa nds
7,637
8,273
10,678
10,717
8,539

43.1
41.7
36.4
33.3
39.2

32.3
30.7
31.0
27.4
28.7

13.8
13.6
16.0
15.4
12.9

10.7
14.0
16.6
23.9
19.1

11.9
13.7
15.6
20.0
18.2

6.5
6.9
8.7
10.1
7.9

51.7
51.6
58.7
58.4
51.8

11.7
11.2
7.9
7.7
9.6

25.2
25.4
22.3
22.5
25.6

11.4
11.9
11.1
11.3
13.0

3,350
3,047
4,061
3,396
2,480

488
460
583
438
378

3,837
3,410
4,594
3,775
2,565

1984: May
June
July
Aug
Sept
Oct
Nov
Dec

8,560
8,228
8,491
8,48"!
8,370
8,367
8,142
8,191

38.3
39.6
40.0
41.1
39.2
40.8
41.4
40.2

28.5
28.2
28.7
28.2
30.0
28.9
28.7
30.8

13.7
12.4
12.8
13.1
13.1
13.1
12.2
11.9

19.4
19.8
18.6
17.6
17.7
17.2
17.7
17.2

18.5
18.1
18.0
17.6
17.3
16.7
17.4
17.3

8.3
7.5
7.6
7.6
7.6
7.3
7.3
7.4

51.2
52.1
52.5
50.1
50.2
51.3
50.5
50.5

9.5
9.9
10.0
9.9
10.1
10.0
10.6
10.4

25.6
24.2
24.8
27.2
27.0
25.9
26.4
26.8

13.7
13.8
12.8
12.9
12.7
12.8
12.5
12.2

2,382
2,365
2,397
2,356
2,390
2,425
2,509
2,487

353
362
378
366
372
393
395
386

2,290
2,166
2,327
2,184
2,083
2,149
2,441
2,778

374
352
342
322
307
289
295
305

1985: Jan
Feb
Mar
Apr
May

8,484
8,399
8,396
8,426
8,413

43.3
41.9
42.4
42.1
42.8

30.2
29.4
29.3
29.8
30.8,

11.1
12.8
12.6
12.1
12.2

15.4
15.9
15.8
16.0
14.1

15.3
15.9
15.9
16.1
14.9

6.7
7.2
7.1
6.7
6.2

50.8
50.7
49.3
50.0
46.9

10.4
10.3
10.0
9.9
10.3

26.4
26.6
27.7
27.4
28.9

12.4
12.3
12.9
12.7
13.8

2,607
2,681
2,639
2,587
2,569

394
406
392
390
386

3,361
3,339
3,113
2,766

326
327
339
243
100

1980
1981
1982
1983
1984

1
2

Detail may not add to 100 percent because of rounding.
Includes State (50 States, District of Columbia, Puerto Rico, and Virgin Islands), ex-servicemen (UCX), Federal (UCFE), and railroad (RR) programs. Also includes Federal and State extended benefit programs. Does not include Federal supplemental compensation program.




3

Federal supplemental compensation program.

Source: Department of Labor (Bureau of Labor Statistics and Employment and Training Administration).

13

NONAGRICULTURAL EMPLOYMENT
Total nonagricultural employment as measured by the payroll survey rose 345,000 in May. (Data reflect revision in
series.)
MILLIONS OF PERSONS* (ENLARGED SCALE)

MILLIONS OF PERSONS*

100 —
p-—"

90

'

i

pr^
\

~-

— —•

ALLNONAGRICUl TURAL
ES TABLISHMEh ITS

^

80

GOVERNMENT

^^"""~

-r"1

mnlmiihimlmuliimlmi

SERV ICE-PRODUC ING
INDUSTRIES

60 —

-

40 —

inn inn iiuiliuii MiiiliiiM

—

cc5NSTRUCTION
30

GOC DS-PRODUC NG
NDUSTRIES

.
.
.
.
.
.

70 M l l l l l l t l i t IlllllllTiT
' 1981
1982

i

1

—
Miimlmii
mmmii
1983

IIIIlllllljJ

iHmliim

1985

1981

1984

r"

1

—•i_-*-

r==H

MMllMMI MM|lM|||
1982
1983

muliim
1984

MUllllllll
1985

•SEASONALLY ADJUSTED
COUNCIL OF EC DNOMIC ADVISERS

SOURCE: DEPARTMENT Of LABOR

[Thousands of wage and salary workers;1 seasonally adjusted]
Se rvice-produc ing industn es

Goods-p reducing in dustries
Period

Total
nonagricultural
employment

M anufacturin ?

Total

2

C nn
onstruction

Total

Durable
goods

Nondurable
goods

Total

Transportation
and
public
utilities

Wholesale
trade

Retail
trade

Goveroment

Finance,
insurance,
and real
estate

Services

Total

Federal

89,823
90,406
91,156
89,566
90,196
94,461

26,461
25,658
25,497
23,813
23,334
24,730

4,463
4,346
4,188
3,905
3,948
4,345

21,040
20,285
20,170
18,781
18,434
19,412

12,760
12,187
12,109
11,039
10,732
11,522

8,280
8,098
8,061
7,741
7,702
7,890

63,363
64,748
65,659
65,753
66,862
69,731

5,136
5,146
5,165
5,082
4,954
5,171

5,204
5,275
5,358
5,278
5,268
5,550

14,989
15,035
15,189
15,179
15,613
16,584

4,975
5,160
5,298
5,341
5,468
5,682

17,112
17,890
18,619
19,036
19,694
20,761

15,947
16,241
16,031
15,837
15,869
15,984

2,773
2,866
2,772
2,739
2,774
2,807

1984: May r ..
June ''.
July r..
Aug r ..
Sept r..

93,998
94,317
94,615
94,893
95,238
r
Oct r... 95,573
Nov .. 95,882
Dec '.. 96,092

24,670
24,767
24,842
24,889
24,851
24,918
24,955
25,045

4,307
4,344
4,354
4,366
4,386
4,403
4,424
4,469

19,390
19,445
19,509
19,539
19,480
19,536
19,553
19,603

11,485
11,538
11,589
11,638
11,611
11,652
11,666
11,701

7,905
7,907
7,920
7,901
7,869
7,884
7,887
7,902

69,328
69,550
69,773
70,004
70,387
70,655
70,927
71,047

5,145
5,164
5,174
5,194
5,210
5,223
5,229
5,246

5,516

16,443
16,534
16,623
16,673
16,750
16,859
16,994
17,026

5,653
5,680
5,693
5,707
5,719
5,737
5,755
5,776

20,628
20,707
20,766
20,849
21,014
21,087
21,184
21,252

15,943
15,933
15,960
16,008
16,084
16,113
16,118
16,082

2,806
2,802
2,805
2,812
2,827
2,823
2,831
2,836

1985: Janr... 96,419
Feb r... 96,591
Mar r.. 96,910
Apr r... 97,118
May ".. 97,463

25,112
25,062
25,056
25,098
25,098

4,534
4,525
4,553
4,648
4,680

19,604
19,561
19,526
19,469
19,441

11,702
11,675
11,651
11,611
11,608

7,902
7,886
7,875
7,858
7,833

71,307
71,529
71,854
72,020
72,365

5,259
5,272
5,269
5,286
5,307

5,686
5,697

17,090
17,160
17,249
17,278
17,389

5,790
5,809
5,835
5,858
5,891

21,382
21,480
21,644
21,723
21,834

16,100
16,111
16,143
16,140
16,188

2,836
2,834
2,850
2,848
2,840

1979
1980
1981
1982
1983 r
1984 r

1
Includes all full- and part-time wage and salary workers in nonagricultural establishments who
worked during or received pay for any part of the pay period which includes the 12th of the month.
Excludes proprietors, self-employed persons, domestic servants, and personnel of the Armed Forces.
Total derived from this table not comparable with estimates of nonagricultural employment of the
civilian labor force, shown on p. 11, which include proprietors, self-employed persons, and domestic
servants; which count persons as employed when they are not at work because of industrial disputes, bad weather, etc., even if they are not paid for the time off; and which are based on a sample

14



5,532
5,557
5,573

5,610
5,636
5,647
5,665

5,714
5,735
5,756

of the working-age population, whereas the estimates in this table are based on reports from employing establishments.
* Includes mining, not shown separately.
NOTE.—Data revised beginning April 1983, unadjusted, and beginning January 1980, seasonally
adjusted.
Source: Department of Labor, Bureau of Labor Statistics.

AVERAGE WEEKLY HOURS AND HOURLY EARNINGS
PRIVATE NONAGRICULTURAL INDUSTRIES
[For production or nonsupervisory workers; monthly data seasonally adjusted, except as noted]
Average giross hourly
earnmgs

Average weekly
hours
Period

Manufa during

Total
private
nonagricultural '

Total

1979
1980
1981
1982 r
1983r .
1984 .
1984: Mayrr
June
July rr
Aug
Sepf
Oct 'T
Nov r
Dec .

36.0
35.8
35.7
35.3
35.2
34.8
35.0
35.3
35.3
35.3
35.3
35.2
35.3
35.2
35.2
35.2

1985: Jan rr
Febr
Mar r.
Apr
May*

35.1
35.1
35.2
35.1
35.0

Overtime

$4.86
5.25
5.69
6.16

39.8
38.9
40.1
40.7
40.7
40.6
40.5
40.5
40.6
40.5
40.5
40.6

3.1
3.5
3.6
3.3
2.8
2.8
2.3
3.0
3.4
3.4
3.4
3.3
3.3
3.3
3.3
3.4
3.4

40.6
40.1
40.4
40.1
40.3

3.4
3.3
3.2
3.3
3.1

8.44
8.49
8.53
8.54
8.55

40.1
40.3
40.4
40.2
39.7

36.1

1976
1977
1978

Total
private
nonagricultural 1

Manufacturing

$5.22
5.68
6.17
6.70
7.27
7.99
8.49
8.83
9.18

6.66
7.25
7.68
8.02
8.33
8.29
8.32
8.35
8.35
8.40
8.38
8.42
8.47

Adjuste d hourly eamin,gs index—total private
nonagncultural2

Ind ex,
1977 == 100

a year
Percent chanj e 4from
5
earlie r

1977
dollars s

Current
dollars

92.9
100.0
108.2
116.8
127.3
138.9

9.13
9.16
9.19
9.22
9.24
9.28
9.31
9.35

148.5
155.4
160.7
159.9
160.5
161.0
160.8
161.7
161.6
162.3
163.4

9.38
9.41
9.43
9.48
9.49

163.0
164.0
164.4
164.7
164.9

Current
dollars

99.0
100.0
100.5
97.4
93.5
92.6
93.4
94.9
94.8

7.2
7.6

1977 dollars

1.4
1.0
.5
-3.1
-4.0
-1.0
.9
1.6
-.1

95.0
95.2
95.2
94.2
94.3
94.1
94.5
94.9

8.2
7.9
9.0
9.1
6.9
4.6
3.4
3.3
3.5
3.4
3.4
3.5
2.8
3.1
3.4

.6
-.1
-.0
-1.2
.5
-.2
.6
.5

94.5
94.7
94.5
94.3
94.3

2.7
3.3
3.2
2.9
3.1

.0
-.1
-.5
-.2
-.9

AVERAGE WEEKLY EARNINGS
PRIVATE NONAGRICULTURAL INDUSTRIES
[For production or nonsupervisory workers; monthly data seasonally adjusted, except as noted]
Percent ch ange from
a year earlier,
total private n ^agricultural 5

Avera,ge gross weekly eairmngs
Period

Current dollars

1976
1977
1978
1979

1980
1981
1982
1983 rr
1984
1984: May 'T
June r
July
Aug'
Sepf.

Ocf
Nov r
Dec'.
1985: Jan rr
Feb
Mar r'.
Apr .
May"
1
Also
1

Manufacturing

Total private
nonagnc ultural '




Retail trade
Current dollars

1977 dollars 3

1977 dollars

Current dollars

$175.45
189.00
203.70

$186.85
189.00
189.31

$209.32
228.90
249.27

219.91
235.10
255.20
267.26
280.70
294.05
292.64
293.70
294.76
293.92
296.52
294.98
296.38
298.14
296.24
298.00
300.26
299.75
299.25

183.41
172.74
170.13
168.09
171.26
173.48
173.88
174.30
174.31
172.19
172.80
171.80
172.62
173.14
171.73
172.15
172.66
171.68
171.10

269.34
288.62
318.00
330.26
354.08
373.63
371.59
371.90
372.20
373.41
375.14
375.84
377.06
379.61
380.83
377.34
380.97
380.15
382.45

includes other private industry groups shown on p. 14.
Adjusted for interindustry employment shifts and for overtime in manufacturing.
Current dollar index (or earnings) divided by the consumer price index on a 1977—100 base.
Revised index for urban wage earners and clerical workers used beginning 1978 (beginning January
1985, this price index incorporates a rental equivalence measure for nomeownership costs).
3

Construction

$283.73
295.65
318.69
342.99
367.78
399.26
426.82
442.97
456.92
456.46
458.89
454.88
456.46
460.49
457.68
462.08
461.16
459.94
463.81
465.58
465.50
460.39

$114.60
121.66
130.20
138.62
147.38

158.03
163.85
171.05
176.40
176.39
176.69
176.40
175.51
176.11
175.82
177.31
177.31
176.42
177.01
177.31
176.12
177.31

7.3
7.7
7.8
8.0
6.9
8.5
4.7
5.0
4.8

1.5
1.2
.2
-3.1
-5.8
-1.5
-1.2
1.9
1.3

4.7
4.9
4.8
4.9
4.4
2.8
3.3

1.5
1.8

1.6
1.2
.6

-.8
-.1

4:0

.4

2.0
2.1
3.3
2.0
2.6

-1.2
-1.3
-.6
-2.1
-1.4

* Monthly changes based on indexes to two decimal places.
Based on seasonally unadjusted data.

8

Note.—Data revised beginning April 1983, unadjusted, and beginning January 1980, seasonally
adjusted.
Source: Department of Labor, Bureau of Labor Statistics.

15

PRODUCTIVITY AND RELATED DATA, BUSINESS SECTOR
Output pe r hour of
all pe sons
Period
Business
sector

Nonfarm
business
sector

Outp at
Business
sector

1

Hours of 2all
persons

Nonfarm
business
sector

Business
sector

Compensa tion per

hou

Nonfarm
business
sector

Business
sector

Nonfarm
business
sector

Heal comj ensation
per he ur 4
Business
sector

Unit abor
cos ts

Nonfarm
business
sector

Implici price
defla or 5

Business
sector

Nonfarm
business
sector

Business
sector

Nonfarm
business
sector

197 7=100;q uarterly d ata season ally adjust ed

97.2

92.2
96.2
96.6

66.1
71.4
78.1

66.7
71.8
78.5

95.7
97.3
95.9

96.6
97.9
96.5

71.5
75.3
84.4

71.7
75.3
84.5

71.3
75.3
82.4

71.3
74.0
81.6

87.8
93.7
100.0
105.7
108.0

93.2
96.0
100.0
104.9
108.6

92.6
95.8
100.0
105.1
109.0

85.6
92.9
100.0
108.5
118.7

86.1
93.0
100.0
108.6
118.4

96.4
98.9
100.0
100.8
99.1

96.9
99.0
100.0
100.8
98.8

90.5
95.1
100.0
108.0
119.5

90.8
95.1
100.0
108.0
119.5

90.4
94.7
100.0
107.5
117.2

94.6
100.0
107.1
116.5

106.5
109.2
106.3
111.0
120.8

106.5
108.7
105.9
111.2
120.7

107.8
108.4
105.4
107.1
112.9

108.3
109.0
106.0
107.5
113.6

131.1
143.4
155.0
161.7
168.6

130.6
143.1
154.5
162.0
168.7

96.4
95.5
97.3
98.4
98.4

96.0
95.3
97.0
98.6
98.4

132.6
142.4
153.6
156.0
157.6

132.8
143.5
154.5
156.6
158.8

128.1
140.4
147.9
152.4
157.4

128.1
140.6
148.6
153.4
158.2

100.3
100.5

106.1
105.8

106.0
105.2

105.1
104.1

105.7
104.7

156.7
158.4

156.0
157.9

97.3
98.0

96.8
97.7

155.3
155.9

155.6
157.1

148.7
149.3

149.3
150.2

102.2
103.6
104.3
104.7

101.6
103.6
104.1
104.4

106.9
110.1
112.5
114.7

106.7
110.4
112.7
115.2

104.7
106.2
107.9
109.5

105.1
106.5
108.2
110.3

160.2
161.0
161.8
164.2

160.1
161.5
162.4
164.0

99.0
98.5
97.9
98.4

99.0
98.8
98.3
98.3

156.8
155.4
155.1
156.8

157.6
155.9
155.9
157.1

151.0
151.7
152.7
154.2

151.9
152.7
153.8
155.2

105.7
107.0
107.2
108.0

105.2
106.6
106.3
106.9

117.8
121.0
121.5
123.0

118.0
121.0
121.3
122.7

111.4
113.0
113.4
113.9

112.3
113.6
114.1
114.8

166.7
167.5
169.3
171.1

166.5
168.0
169.5
171.0

98.6
98.2
98.3
98.5

98.4
98.4
98.4
98.5

157.7
156.5
158.0
158.4

158.3
157.6
159.5
160.0

155.6
156.7
158.1

159.0

156.3
157.3
159.0
160.1

1985: I

107.1

106.2

123.1

122.9

114.9

115.7

173.3

173.3

99.0

99.0

161.9

163.2

161.1

162.4

1972
1973
1974

3.5
2.6
-2.4

3.7
2.4
-2.5

6.6
6.6
2.0

6.9
6.8
-2.0

3.0
3.9
.4

3.1
4.3
.5

6.5
8.0
9.4

6.7
7.6
9.4

3.1
1.6
-1.4

3.3
1.3
-1.4

2.9
5.3
12.1

2.8
5.0

3.4
5.5
9.5

3.0
3.8
10.2

1975
1976
1977
1978
1979

2.2
3.3
2.4
.5
-1.2

2.0
3.2
2.2
.6
-1.5

-2.0
6.4
6.6
5.5
2.3

-2.2
6.7
6.7
5.7
2.2

-4.1
3.0
4.1
4.9
3.5

-4.1
3.4
4.4
5.1
3.7

9.6
8.5
7.7
8.5
9.4

9.6
8.1
7.5
8.6
9.0

.5
2.6
1.2
.8
-1.7

.4
2.2
1.0
.8

7.3
5.1
5.1
8.0
10.7

9.8
4.7
5.6
7.5
9.0

10.3
5.1
5.7
7.1
8.8

1980
1981
1982
1983
1984

-.5
1.9
.2
2.7
3.2

.7
1.5
.2
3.5
2.7

1.2
2.5
-2.6
4.4
8.8

-1.4
2.1
-2.6
5.0
8.5

•7
.6
-2.8
1.6
5.4

-.6
.6
-2.8
1.5
5.7

10.4
9.4
8.1
4.3
4.2

10.3
9.6
8.0
4.9
4.1

-2.7
-.9
1.9
1.1
0

-2.8
-.7
1.7
1.6

1982: HI
IV

2.4
2.7

3.6
1.1

-1.3
-1.2

-3.0

-3.6
-3.8

-3.6
-4.0

7.5
4.5

7.5
5.1

.2
3.0

1983: I

2.1
5.9
2.8
1.4

4.4
8.1
2.1
1.0

4.4
12.4
9.3
7.8

6.0
14.3
8.7
9.1

2.2
6.1
6.4
6.2

1.5
5.7
6.5
8.0

4.4
2.2
2.0
6.1

5.7
3.5
2.2
4.1

4.0
-2.1
-2.2
1.9

4.0
4.9
.6
3.1

2.9
5.5
-1.1
2.2

11.4
11.2
1.8
5.0

10.3
10.6
.7
4.7

7.2
6.0
1.2
1.8

7.2
4.8
1.8
2.4

6.2
1.9
4.4
4.4

6.1
3.7
3.6
3.7

.8
-1.8
.7
.8

.7
0
-.1
.1

2.1
-2.9
3.7
1.2

.1

.8

3:7

3.3

5.2

5.4

1.8

2.1

9.0

1972
1973
1974

92.4

94.8
92.5

93.0
95.3
92.9

86.1
91.7
89.9

85.8
91.7

93.2
96.8

89.8

1975

1976
1977
1978
1979

94.6
97.6
100.0
100.5
99.3

94.8
97.8
100.0
100.6
99.0

88.2
93.8
100.0
105.5
107.8

1980
1981
1982
1983
1984

98.8
100.7
100.9
103.7
107.0

98.3
99.8
100.0
103.4
106.2

1982: HI

100.9
101.6

1983: I

rv

n
m
IV

1984: I

n
in......
IV

90.0

Pe rcent chan ge; quarte rly data a seasonal] y adjusted annual ra tes

n
ra
IV

1984: I

n
Ill
IV

1985: I

-3.5

-2.5

J

1
Output refers to gross domestic product originating in the sector in 1972 dollars.
2
Hours of all persons engaged in the sector, including hours of proprietors and unpaid family
workers. Estimates based primarily on establishment data.
3
Wages and salaries of employees plus employers' contributions for social insurance and private
benefit plans. Also includes an estimate of wages, salaries, and supplemental payments for the self-

" • Hourly compensation divided by the consumer price index for all urban consumers.

16



5

-2.0

12.2
7.5
4.7
5.2
8.0

10.7

11.0
7.3
7.9
1.6
1.0

11.1
8.0
7.7
1.4
1.4

9.3
9.6
5.3
•3.0
3.2

10.0
9.8
5.7
3.2
3.1

.2
3.6

5.0
1.7

3.7
4.0

2.3
1.8

2.0
2.4

5.3

2.2
-3.5
-.8
4.6

1.3

4.6
1.9
2.5
4.1

4.6
2.2
2.7
3.7

4.7
1.4

3.7
2.9
3.6
2.2

2.8
2.8
4.2
2.9

8.1

5.3

5.9

-1

-.8
-2.0
0

-4.2
.1
3.0
3.1

-1.7

Current dollar gross domestic product divided by constant dollar gross domestic product.

NOTE.—Data relate to all persons engaged in the sector.
Percent changes are from preceding period and are based on original data; they therefore may
dlffer ah
g"".v «om percent changes based on indexes shown here.
Source:

Department of Labor, Bureau of Labor Statistics.

PRODUCTION AND BUSINESS ACTIVITY
INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION
Industrial production fell 0.1 percent in May following a decline of 0.2 percent in April. The index for May was
1.5 percent above its year earlier level.
INDEX, 1967 = 100* (RATIO SCALE)

INDEX, 1967 = 100* (RATIO SCALE)

200

200

TOTAL IN DUSTRIAL PRODUCTIC>N

UTILITIES ANDMIN NG PRODLJCTION

180

180

^

160

i

S mf

./r~*

—7^

.•"•/^v—

•^••H

160

^l

UTILITIES
^

140

140

-'* /""*- •%
\J

\

'
IlllllllIM lllllllllll lllllllllll lllllllllll

l|||lllllll

\
\
\

120

**'''

200

MANUFA OURING ('RODUCTIC)N

lllllllllll

100

1
\

MINING, ***»S
\
j\**

*\
V*

lllllll||l| lllllllllll ...Ml,,,,,

*

iiiii|iim

•*"

\

160

NONDURAB LE /

,..-,.

/

V.
lllllllllll
1982

1981

3>«

90 -MAIMUFX^TURING CAPACITY UTILIZATIO N RATE —

^~

\

Im,

PER CENT*

/

A

DURAB .E

70

lllllllllll lllllllllll
1983

r*^^~n*•*-«•.

80

1984

60 lllllllllll lllllllllll lllllllllll lllllllllll lllllllllll

lllllllllll

1981

1985

1982

1983

•SEASONALLY ADJUSTED
SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

1984

1985

COUNCIL OF ECONOMIC ADVISERS

[Monthly data seasonally adjusted]

Period
Index,
1967 = 100

1967 proportion
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1984: May
June
July
Aug
Sept
Oct
Nov
Dec
1985: Jan
Feb r
Mar r
Apr r
May"
1

Output as percent of capacity.




Capacity itilization
rate, perceiit (Federal
Reserve series) *

Industry proc uction indexes , 1967 = 100

To tal
Indus trial
produ ction

Manufacturing

Percent
change
from year
earlier

Mining
Total

Durable

Nondurable

Utilities

Manufacturing

Industrial
materials

100.00
117.8
130.5
138.2
146.1
152.5
147.0
151.0
138.6
147.6
163.3
162.8
164.4
165.9
166.0
165.0
164.4
164.8
164.8

87.95
116.3
130.3
138.4
146.8
153.6
146.7
150.4
137.6
148.2
164.8
164.2
165.7
167.3
167.6
166.6
166.2
166.6
166.6

51.98

5.69

109.3
122.3
130.0
139.7
146.4
136.7
140.5
124.7
134.5
154.6
153.3
154.9
157.2
157.8
157.1
157.1
157.6
157.6

35.97
126.4
141.8
150.5
156.9
164.0
161.2
164.8
156.2
168.1
179.4
179.9
181.3
181.8
181.7
180.3
179.4
179.6
179.6

6.36

-8.9
10.8
5.9
5.7
4.4
-3.6
2.7
-8.2
6.5
10.6
12.7
12.3
10.8
9.4
7.3
6.1
6.1
5.5

112.8
114.2
118.2
124.0
125.5
132.7
142.2
126.1
116.6
125.7
125.0
127.0
129.9
128.3
128.7
123.6
124.8
124.4

146.0
151.7
156.5
161.4
166.0
168.3
169.1
168.7
172.4
181.5
182.3
184.3
181.8
180.6
180.9
180.6
184.7
183.7

72.9
79.6
82.2
84.7
86.0
79.6
79.4
71.1
75.2
81.6
81.7
82.2
82.8
82.8
82.0
81.7
81.6
81.4

73.3
81.1
82.6
85.6
87.6
80.4
80.7
70.1
75.2
82.0
82.7
82.9
83.1
83.2
82.4
81.0
80.9
80.4

165.1
165.4
165.9
165.5
165.3

4.2
3.4
3.2
2.1
1.5

166.6
166.6
167.3
167.0
166.9

157.6
158.0
158.9
158.2
158.0

179.6
179.1
179.4
179.8
179.7

125.6
125.5
127.2
123.7
122.9

183.6
188.2
187.3
188.1
189.6

81.2
81.0
81.1
80.7
80.4

80.5
80.9
80.8
80.1
79.7

Source: Board of Governors of the Federal Reserve System.

17

INDUSTRIAL PRODUCTION—MAJOR MARKET GROUPS AND
SELECTED MANUFACTURES
[1967 = 100; monthly data seasonally adjusted]
Produc ts
7

Interir ediate prot ucts

inal product s

C Misumer go ids

1Equipment

Materi-

Period
Total
Total

1967 proportion
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1984:

May
June
July
Aug
Sept
Oct
Nov
Dec

47.82
125.1
118.2
127.6
135.9
142.2
147.2
145.3
149.5
141.5
147.1
162.7
161.1
163.1
165.2
165.1
164.6
165.2
166.2
166.7

1985:

Jan
Peb '
Mar-;
Apr'.
May".

166.7
166.4
167.0
167.1
166.9

Durable
goods

Nondurable goods

Total

Business

Defense
and
space
equipment

Total

Construction
supplies

supplies

37.68
128.9
124.0
137.1
145.3
149.1
150.8
145.4
147.9
142.6
151.7
161.6

7.89

19.79

20.14

12.63

7.51

12.89

6.42

6.47

135.3
121.4
141.9
154.0
159.2
155.8
136.7
140.5
129.2
147.5
162.0

126.3
125.1
135.2
141.9
145.1
148.8
148.9
150.9
148.0
153.4
161.5

120.0
110.2
114.6
123.0
132.8
142.2
145.2
151.8
139.8
140.8
164.1

142.4
128.2
135.4
147.8
160.3
171.3
173.2
181.1
157.9
153.3
181.0

82.4
80.0
79.8
81.3
86.5
93.4
98.2
102.7
109.4
119.9
135.6

135.3
123.1
137.2
145.1
154.1
160.5
151.9
154.4
143.3
156.6
172.3

134.5
116.3
132.6
140.6
151.7
158.0
140.9
141.9
124.3
142.5
158.9

136.0
129.7
141.7
149.5
156.5
163.1
162.8
166.7
162.1
170.7
185.7

161.7
163.0
163.8
162.5
161.6
161.6
162.6
162.2

161.4
163.6
163.7
162.6
159.6
158.7
161.5
161.0

161.8
162.7
163.9
162.4
162.4
162.7
163.0
162.7

160.3
163.3
167.0
168.7
168.9
170.1
171.2
172.8

176.5
181.1
185.5
187.6
186.4
187.3
188.4
189.6

133.1
133.5
135.9
136.8
139.5
141.1
142.2
144.7

171.6
173.5
175.8
175.1
173.0
173.4
173.1
173.2

159.5
160.9
161.9
160.9
158.2
158.6
156.9
157.5

183.5
186.1
189.5
189.1
187.6
188.0
189.2
188.8

162.1
162.1
162.6
162.4
162.4

160.5
162,5
164.6
161.9
161.6

162.8
162.0
161.9
162.6
162.7

173.0
172.3
173.0
173.5
173.2

189.2
188.4
188.0
187.8
187.1

145.8
145.4
147.8
149.5
149.9

172.7
173.1
174.0
173.9
174.5

156.9
156.8
157.8
158.7
159.1

188,4
189.3
190.1
189.0

Supplementary
group:
Energy
total

12.23

39.29
132.4
1 15.5
131.7
138.6
148.3
156.4
147.6
151.6
133.7
145.2
161.2
162.0
162.9
163.5
164.0
162.8
160.4
160.4
159.8

125.5
125.5
129.1
132.9
135.4
137.9
137.7
137.4
135.7
135.9
142.5
143.3
144.5
144.0
143.0
142.8
139.8
142.7
142.3

160.5
161.6
161.8
160.9
160.4

143.1
146.3
146.4
146.1
147.1

[1967 = 100; monthly data seasonally adjusted]
Durable m inufactures
Transp >rtation
equipment

Primary metals
Period
Total

1967 proportion
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984

Iron and
steel

Fabricated
metal
products

Nonelectrical
machinery

No ndurable nanufactu res

Electrical
machinery

Total

Motor
vehicles
and
parts

Lumber
and
products

Apparel
products

Printing and
publishing

Chemicals
and
products

Foods

6.57

4.21

5.93

9.15

8. OS

9.27

4.50

1.64

3.31

4.72

7.74

8.75

123.1
96.4
109.7
111.1
119.9
121.3
102.3
107.9
75.3
85.4
95.1

119.8
95.8
104.8
103.8
113.2
113.2
92.4
99.8
61.7
71.5
79.8

124.2
109.9
123.9
131.0
141.6
148.5
134.1
136.4
114.8
120.2
137.5

140.1
125.1
134.5
143.6
153.6
163.7
162.8
171.2
149,0
150.6
181.5

143.8
116.5
134.8
145.4
159.4
175.0
172.8
178.4
169.3
185.5
217.4

108.7
97.4
111.1
122.2
132.5
135.4
116.9
116.1
104.9
117.8
137.6

128.2
111.1
142.0
161.1
169.9
159.9
119.0
122.3
109.8
137.1
165.7

116.2
107.6
123.2
131.2
136.3
136.9
119.3
119.1
112.6
137.2
148.7

1 14.3
107.6
125.7
134.2
134.2
134.4
127.0
120.4

118.2
113.3
122.5
127.6
131.5
136.9
139.6
144.2
144.1
152.3
169.7

159.4
147.2
170.9
185.7
197.4
211.8
207.1
215.6
196.1
215.0
228.1

124.0
123.4
133.0
138.8
142.7
147.5
149.6
152.1
151.1
156.4
163.2

1984:

Mav
June
July
Aug
Sept
Oct
Nov
Dec

98.2
97.9
94.5
94.4
94.1
92.7
91.5
87.8

83.5
83.5
76.5
77.7
77.5
74.6
73.9
72.1

136.5
138.7
140.6
140.0
139.5
140.7
139.0
140.2

178.8
182.0
186.9
189.1
187.9
187.7
188.9
188.3

214.5
216.0
221.5
221.5
222.8
222.3
222.5
224.5

135.0
137.2
140.6
141.0
137.6
137.2
141.3
143.3

163.0
165.3
169.0
169.6
162.4
161.7
170.8
171.8

146.3
148.5
146.0
148.8
149.2
152.6
152.2
150.4

167.5
169.0
172.6
173.1
170.5
172.3
174.0
174.1

227.9
231.0
232.0
231.6
230.8
228.0
230.2
228.1

164.2
165.1
164.9
164.7
164.3
164,0
162,9
164.1

1985:

Jan
Feb r
M a rrr
Apr
May"

89.7
92.3
95.2
93.7
93.6

72.2
74.6
81.3
78.2

139.4
141.6
142.1
141.6
141.1

189.2
188.6
188.6
189.2
189.3

220.3
219.9
221.1
217.7
215.8

145.8
144.6
145.3
144.6
145.5

176.3
172.3
172.2
171.0
172.4

150.4
148.5
151.2
151.7

174.5
173.9
175.3
176.3
176.4

227.8
227.4
228.1
228.9

164.9
163.5
163.7

Source1: Board of Governors of the Federal Reserve System,

18




NEW CONSTRUCTION
[Monthly data seasonally adjusted]
Constructio n contracts 2

Private
Total new
construction
expenditures

Period

Resi lential
Total

Commercial
and industrial

New housing

Total1

Other

Federal,
State, and
local

Total value
index
(1977 = 100)

Commercial
and industrial
floor space
(millions of
square feet)

I illions of dollars

1977
1978
1979
1980

173.8
205.6
230.4
230.7
239.1
230.1
262.2
309.7

135.7
159.7
181.6
175.7
185.8
179.1
211.4
253.9

81.0
93.4
99.0
87.3
86.6
74.8
111.7
133.5

Apr
May
June
July
Aug.
Sept
Get
Nov
Dec

308.6
316.4
315.3
314.2
318.0
318.7
312.8
308.1
307.6

254.1
261.2
257.8
258.2
261.2
260.9
256.1
251.6
251.3

136.6
138.4
136.4
137.8
138.9
137.1
131.1
125.9
122.7

Jan
Feb r
Mar r.
Apr"
May"

316.4
322.7
322.4
325.7

258.6
264.5
263.9
267.1

128.4
133.2
134.7
134.0

1981
1982
1983
1984

100.0
114.0
121.0
108.0
112.0
111.0
137.0
149.0

22.5
29.6
39.9
43.8
51.3
54.6
48.7
63.7

32.2
36.7
42.7
44.7
47.9
49.7
51.0
56.7

38.2
45.9
48.8
55.0
53.3
51.0
50.8
55.8

102.7
106.4
105.0
104.6
105.0
103.2
103.4
102.5
101.9

61.0
64.9
63.0
62.2
64.1
65.8
68.4
69.9
72.0

56.5
57.9
58.4

54.5
55.2
57.5
56.0
56.9
57.8
56.7
56.5
56.3

147
163
144
150
148
146
145
151
150

957
990
899
955
992
910
948
1,005
1,041

102.3
102.0
102.0
102.8

73.5
74.6
74.0
76.1

57.8
58.2
58.4
58.7

150
145
162
161
162

974
990
1,049
1,104
1,008

65.7

75.8
78.6
63.1
62.7
51.9
86.1
102.8

Annual rates

Annual rales

1984:

1985:

1
Includes nonhousekeeping residential construction and additions and alterations, not shown separately.
2
F. W, Dodge series. Relates to 50 States beginning 1969 for value index and beginning 1971
for floor space.

739
977
1,059
904
919
690
756
937

58.2
58.1
58.0
56.6
55.8
56.5
56.6
56.7
55.2
57.0

Sources: Department of Commerce (Bureau of the Census) and McGraw-Hill Information Systems
Company, F. W. Dodge Division.

NEW PRIVATE HOUSING AND VACANCY RATES
[Thousands of units or homes, except as noted]
New pri\ ate homes

New private housing units
Period

Units started, by type of structure
•

1977
1978
1979
1980
1981
1982
1983
1984

Total
1,987.1
2,020.3
1,745.1
1,292.2
1,084.2
1,062.2
1,703.0
1,749.5

1 unit
1,450.9
1,433.3
1,194.1
852.2
705.4
662.6
1,067.6
1,084.2

2-4 units

5 or more units

121.7
125.0
122.0
109.5
91.1
80.0
113.5
121.4

414.4
462.0
429.0
330.5
287.7
319.6
522.0
544.0

Units
authorized
1,690.0
,800.5
,551.8
,190.6
985.5
,000.5
,605.2
,681.8

Units
completed

Homes sold

Homes for
sale at end of
period *
402
414
398
336
272
251
300
356

1,657.1
1,867.5
1,870.8
1,501.6
1,265.7
1,005.5
1,390.3
1,652.2

819
817
709
545
436
412
623
639

1,731
1,718
1,699
1,681
1,657
1,614
1,587
1,635

617
636
615
557
670
652
596
604

332
338
340
343
343
346
349
356

l,719
1,794
1,686
1,635

634
659
695
612

356
360
360

3

Vacancy rate
for rental
housing units
(percent) 2

5.2
5.0
5.4
5.4
5.0
5.3
5.7
5.9

Seasonal iy adjusted annu al rates
1984:

1985:

May
June
July
Aug
Sept
Oct
Nov
Dec

1,787
1,837
1,730
1,590
1,669
1,564
1,600
1,630

1,118
1,077
996
962
1,009
979
1,043
1,112

118
108
116
114
107
109
115
119

551
652
618
514
553
476
442
399

1,765
1,805
1,591
1,542
1,517
1,477
1,616
1,599

Jan
Feb '
Mar T.
Apr r.
May "

1,849
1,647
1,889
1,927
1,663

1,060
1,135
1,168
1,159
1,042

105
96
106
110
111

684
416
615
658
510

1,635
1,624
1,741
1,704
1,755

1
Seasonally adjusted.
z
Quarterly data entered in last month of quarter. Series beginning 1979 not strictly comparable
with earlier data.
3
New series beginning March 1979.




r

5.5
6.0
6.3

6.3

362

NOTE.—Beginning 1984, units authorized are for 17,000 permit-issuing places (in issues of Economic Indicators prior to February 1985, data for 1984 were for 16,000 places); for 1978-83 data
are for 16,000 places; and for 1973-77 data are for 14,000 places.
Source: Department of Commerce, Bureau of the Census.

19

BUSINESS SALES AND INVENTORIES—Manufacturing and Trade
Manufacturing and trade sales rose 1.2 percent in April and inventories rose $2.1 billion. According to advance
data, retail sales fell 0.8 percent in May, following a rise of 2.4 percent in April.
BILLIC)NS OF DDL ARS* (RATIC> SCALE)

650
600

P**'"*

550 -

_

,^—*^

_^^^* r*

—
-••ir""*""

500

S^

=MAN
^UFACTURIN GAND
TR/^DE INVENTC3RIES

—

•»W«"

—

•»•*

110

^x**

^

»'X'\
M/\NUFACTUR NG
AhJD TRADE SA LES

300

r**—

^

J-,
I*—-^"^^

S

120

400
350 if """""•.,

^rj—< *f~~^^
RE FAIL INVENT DRIES-—^£.

140
130

!

450

BILLK3NS OF DDL ARS* (RATIC5 SCALE)
170
160
150 —

^^
^

—

,*• *"

"**"

100
x.

on

.,^'~— f— "•'"

f

- '\
DETAIL SALES

80
_

—

250 I—

70
60

200

50 lllllllllll lllllllllll

imilmii

lilllllllll llllllll||l

RATIC)*
1.80

_ INVENT<DRY-SALES RATIO

_.

150

MAN(UFACTURING
A ND TRADE

1 60
1.40

- ^X"N-V -"^^y
r^f ^T^
__,

lllllllllll lllllllllll lllllllllll HlUlltlll

1982

1981

iiiiiliiin

1984

1983

1.20

iiiiiliiin

RETAIL
ll|||||||ll

1981

1982

1985

Sales

Invento-3
ries

1984

1983

__

lllllllllll

1985

COUNCIL OF ECO NOMIC ADVISERS

Inventory-s ales ratio4

Be tail

Who esale

Inventories 3

Sales2

Period
2

xrzs^*

lllllllllll
iiiiiliiin s^^

SEASONALLY ADJUSTED
s OURCE: DEPARTME NT OF COMMERCE

and
Manufact oring
tra< e 1

—

1 •*^s

Sales

2

InventoTotal

Durable
goods
stores

Nondurable goods
stores

Total

Durable
goods
stores

Nondurable goods
stores

Manufacturing

Retail

trade l

Millions of dollars, seasonally idjusted
1977
1978
1979
1980
1981
1982
1983
1984

230,000
260,810
298,344
328,074
356,927
344,656
368,747
411,733

351,459
399,561
451,354
493,958
527,739
509,213
520,281
573,434

56,364
66,674
79,481
93,721
102,021
96,290
100,448
114,071

72,801
86,442
99,348
113,623
118,438
118,290
120,476
132,208

60,434
67,231
74,926
79,963
86,777
89,339
97,858
108,085

20,720
23,368
25,529
24,914
27,089
28,059
33,041
38,691

39,715
43,863
49,397
55,049
59,688
61,279
64,817
69,394

89,444
102,610
110,906
116,054
126,656
126,014
139,123
155,517

43,071
50,136
54,108
55,117
60,327
58,952
66,845
74,582

46,373
52,474
56,798
60,937
66,329
67,062
72,278
80,935

1.46
1.44
1.43
1.45
1.44
1.51
1.38
1.34

1.39
1.43
1.44
1.42
1.40
1.40
1.34
1.37

1984: Apr
May
June
July

408,342
412,524
413,976
412,233
413,300
412,276
414,243
417,635
421,613

545,926
550,503
552,421
557,168
561,715
565,475
568,750
571,239
573,434

113,230
116,186
115,636
114,774
114,749
114,573
113,994
114,337
114,913

125,659
126,742
126,745
128,577
129,433
130,610
131,023
132,501
132,208

107,443
107,941
109,085
107,563
107,396
108,373
108,974
110,255
110,519

38,302
38,667
39,434
38,465
38,071
38,301
39,281
39,934
40,295

69,141
69,274
69,651
69,098
69,325
70,072
69,693
70,321
70,224

149,627
149,493
148,469
148,817
149,508
150,334
152,130
153,070
155,517

72,232
71,356
70,504
70,012
70,201
70,801
71,896
72,839
74,582

77,395
78,137
77,965
78,805
79,307
79,533
80,234
80,231
80,935

1.34
1.33
.33
.35

1.39
1.38
1.36
1.38
1.39
1.39
1.40
1.39
1.41

417,350
418,667
420,776
425,805

575,802
578,940
578,768
580,846

114,654
114,310
114,619
117,466

132,247
133,631
133,865
134,168

110,972
112,096
111,854
r
114,584
113,678

40,622
41,073
40,765
r
42,566
41,638

70,350
71,023
71,089
r
72,018
72,040

157,770
159,163
158,732
160,645

76,393
76,838
77,401
78,739

81,377
82,325
81,331
81,906

Aug
Sept
Oct
Nov
Dec

1985: Jan
Feb
Mar '.
Apr"
May"
1
See page 21 for
2
Monthly average
3

manufacturing.
for year and total for month.
Book value, end of period, seasonally adjusted.

20



.36
.37
.37
.37
1.36
1.38
1.38
1.38
1.36

1.42
1.42
1.42
1.40

4
For annual periods, ratio of weighted average inventories to average monthly sales; for monthly
data, ratio of inventories at end of month to sales for month.

Source: Department of Commerce, Bureau of the Census.

MANUFACTURERS' SHIPMENTS, INVENTORIES, AND ORDERS
In April, manufacturers' shipments, inventories, and orders fell. In May, according to advance data, durable goods
shipments and new orders rose.
BILLIC )NS OF DOL ARS* (RATIC) SCALE)

BILLIC3NS OF DOL LARS* (RATIC) SCALE)

240

400
360

SHIPME NTS

200
160 —

^5-T

300

TOTAL

240

r^r-\

— "^

DURABLE GO LIDS

200

100

5t=^-=

160

"

\-—/

s&*
-

NONDURABLE GO DOS

*^"

h/H

DU RABLE GOO )S

120
100

60

80
40

r

i
TOTAL

120

80 «~—~

INVENT ORIES

7

Ulllllllll lllllllllll lllllllllll lllllllllll lllll|ll|||

NONC)URABLE GO ODS

60
BILLIC)NS OF DOL LARS* (RATIC) SCALE)

240
200 _NEWO RDERS
160 ,-

-w.

r ^"

*^-j— "V""
^™»

"•"^••v. ™

INVENT ORY-SHIPM ENTS

••*""

18

r^~~^

s\

''S'^NONDURABLE GOOL)S

^s

1.6

RATI D

••v
_^-*^*-^)^_

60

N,—"—^^

^^

1.4 —

40

lllllllllll lllllllllll lllll|l|||| lllllllllll lllllllllll
1982

1981

1983

1.2

lllllllllll

1985

1984

iiiiiiiini iiiiilniii

1981

1982

1984

Manufa( turers' inven tones

1'anufacturers new orders i

2

Durabl 3 goods
Durable
goods

1985

COUNCIL OF ECC NOMIC ADVISERS

Manufa cturers' shiptnents 1

Total

—

Illlltlllll lllllllllll

1983

SEASONAUY AOJ JSTED
OURCE: OEPARTM NT OF COMMERC E

Period

lllllllllll

2.0

^•r*VM**x<f*
±JKU*>

iiiiihiiii

2.2

|
DURABLE GOCJDS

100

lllllllllll ll|||llllll lllllll|ll|

RATI

—"~^
1OTAL

120

80

40

—.^~r~-~^1

Nondurable goods

Durable
goods

Total

Nondurable goods

Total
Total

Capital
goods
industries,

Nondurable goods

Manufacturers'
unfilled
orders 3

Manufacturers'
inventoryshipments
ratio 4

defense

M illions of do lars, seasoilally adjust 3d
1977
1978
1979
1980
1981
1982
1983
1984

113,202
126,905
143,936
154,391
168,129
159,027
170,441
189,578

59,267
67,848
76,060
77,550
83,872
76,693
84,951
98,502

53,935
59,057
67,876
76,841
84,257
82,334
85,491
91,076

189,214
210,509
241,100
264,281
282,645
264,909
260,682
285,709

121,601
137,891
160,533
174,620
186,347
175,103
171,629
191,109

67,613
72,618
80,567
89,661
96,298
89,806
89,053
94,600

115,032
131,546
147,403
156,161
167,752
157,255
173,259
191,634

61,082
72,339
79,451
79,360
83,553
74,996
87,631
100,611

15,291
19,458
23,231
23,259
24,050
20,681
22,764
27,017

53,950
59,207
67,953
76,801
84,199
82,260
85,627
91,024

203,475
259,770
302,145
323,393
319,094
296,918
330,924
355,640

1.57
1.57
1.66
1.64
1.73
1.52
1.45

1.61

1984:

Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

187,669
188,397
189,255
189,896
191,155
189,330
191,275
193,043
196,181

95,460
96,895
97,732
97,841
100,254
98,214
100,807
102,394
103,939

92,209
91,502
91,523
92,055
90,901
91,116
90,468
90,649
92,242

270,640
274,268
277,207
279,774
282,774
284,531
285,597
285,668
285,709

178,381
180,543
182,474
184,588
187,035
188,619
190,088
190,669
191,109

92,259
93,725
94,733
95,186
95,739
95,912
95,509
94,999
94,600

189,360
192,384
189,911
194,061
192,384
189,217
186,799
194,982
193,671

97,307
100,950
98,340
101,979
101,860
98,210
96,506
104,434
101,307

26,332
28,562
27,721
28,140
26,736
27,394
25,259
26,836
26,893

92,053
91,434
91,571
92,082
90,524
91,007
90,293
90,548
92,364

350,763
354,750
355,406
359,571
360,800
360,687
356,211
358,150
355,640

1.44
1.46
1.46
1.47
1.48
1.50
1.49
1.48
1.46

1985:

Jan
Feb
Mar
Apr*
May"

191,724
192,261
r
194,303
193,755

101,966
101,724
r
102,116
T
102,266
102,775

89,758
90,537
92,187
91,489

285,785
286,146
286,171
286,033

192,153
192,030
192,355
192,459

93,632
94,116
93,816
93,574

195,210
193,057
r
191,532
191,015

105,447
102,467
T
99,544
r
99,725
103,807

23,633
29,493
27,206
r
25,409
25,637

89,763
90,590
91,988
91,290

359,125
359,926
r
357,151
354,416

1.49
1.49
1.47
1.48

1
2
3

Monthly average for year and total for month. Shipments are the s
Book value, end of period.
End of period.




4
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.

Source: Department of Commerce, Bureau of the Census.

21

PRICES
PRODUCER PRICES
In May, the producer price index for all finished goods rose 0.2 percent, seasonally adjusted. Prices of finished
consumer foods fell 1.1 percent, and prices of other finished consumer goods rose 0.9 percent. Prices of capital
equipment were unchanged.
INDEX, 1967= 100 (RATIO SCALE)
320

-

INDEX, 1967= 100 (RATIO SCALE)
320
—•
CO NSUMER GOO DS
EXC:LUDING FOOC3S
300

FINISHE D GOODS

300

s

TOTAL FINISHED
GOODS
\

280

^1

v^-^*

r^*"?

260

x^
fsC?

240

.x'-l
^*<

iu—— —|cs^C2—£2S £«*i~

280

—

"X

xs

-.— ^_x

•—

O/tA

CONSUMER FC5ODS

&S^~
CAPITAL EQlJIPMENT

&3

—

—

,&

oon

oon

180

— ^^

'

•Z***^

_

9OO

,

t
/ ~s^

x/

''
&S
-x--^
/ ^sZ/*

' ^^^

—

^"*

h-*'

160 Illllllllll Illllllllll
1977

/

Illllllllll
1979

1978

Illllllllll Illllllllll Illllllllll |ll|lll|Ill
1984
1983
1981
1982

1980

SOURCE, DEPARTMENT OF IABOR

Illllllllll

160

1985

COUNCIL OF ECONOMIC ADVISERS

[1967 — 100; monthly data seasonally adjusted]

Fin shed goods
Period

Total
finished

goods

Consumer
foods

Finished go<9ds excluding consumer fooiis
Consumer g<xxls
Total
Total

1977
1978
1979
1980
1981

1982
1983
1984
1984: May
June
July
Aug
Sept
Oct
Nov
Dec
1985: Jan '.
Feb
Mar
Apr
May
1

181.7

195.9
217.7
247.0
269.8
280.7
285.2
291.1
291.2
291.2
291.8
291.2
291.2
291.0
292.0
292.0
292.1
292.1
292.7
293.6
294.2

189.9
207.2
226.2
239.5
253.6
259.3
261.8
273.3
270.4
270.4
274.5
273.8
273.4
273.0
274.5
275.6
274.3
274.4
273.9
271.1
268.1

177.7
190.7
213.3
247.8

273.3
285.8
290.8
294.8
295.9
295.9
295.3
294.8
294.9
294.8
295.6
295.2
295.8
295.7
296.7
298.8
300.7

Intermediate materials for food manufacturing and feeds.

Source: Department of Labor, Bureau of Labor Statistics.

22



Durable

174.3
186.7
211.5
250.8
276.5
287.8
291.4
294.1

152.8
166.9
183.2
206.2
218.6
226.7
233.1
236.8

295.8
295.5
294.5
293.5
293.4
293.5
294.3
294.2

236.8
236.9
237.1
237.2
238.2
236.6
237.6
237.5
238.8
240.1
241.3
241.3
241.7

294.0
293.5
294.3
297.4
300.0

Nondurable

189.3
200.0
231.3
283.9
319.6

333.6
335.3
337.3
340.3
339.9
337.8
335.9
334.9
336.5
337.2
337.0
335.6
333.5
334.1
339.6
344.0

Capital
equipment

Total
finished
consumer
goods

184.6
199.2
216.5
239.8
264.3
279.4
287.2
294.0

180.7
194.9
217.9
248.9
271.3
281.0
284.6
290.3

293.8
294.1
294.7
295.3
295.8
295.1
295.9
295.0

290.5
290.3
291.0
290.1
289.9
289.9
290.9
291.2
290.6
290.3
290.7
291.9
292.6

297.4
298.4
299.7
299.7
299.7

Internmediate ma terials

Cr,jde raaten als

Foods
and
feeds l

Other

Total

Foodstuffs
and
feedstuffs

Other

190.5
203.1
226.1
252.6
250.3
239.4
247.9
253.1

202.3
216.5
244.4
282.3
310.1
315.7
317.1
325.0

209.2
234.4
274.3
304.6
329.0
319.5
323.6
330.8

192.1
216.2
247.9
259.2
257.4
247.8
252.2
259.5

245.0
272.3
330.0
401.0
482.3
473.9
477.4
484.5

258.9
256.9
252.9
249.6
246.9
244.5
245.6
244.8

325.6

332.5
330.4
331.3
327.4
327.6
324.5
329.1
328.5
321.7
316.1
311.5
307.7
305.1

259.1
255.5
257.7
253.1
254.4
251.6
260.4
260.9

490.8
491.8
490.0
487.5
485.2
481.5
477.6
474.4

254.9
250.4
243.5
236.1
230.4

466.0
458.1
458.2
461.9
465.7

Total

201.5
215.6
242.2
280.3
306.0

310.4
312.3
320.0
320.9
321.5
320.9
320.3
320.0
320.4
320.9
320.7
320.4
318.9
318.4
319.1
320.0

241.6
240.3
238.6
234.9
230.7

326.3
326.0
325.6
325.4
326.0
326.5
326.4
326.2
324.7
324.3
325.4
326.5

CONSUMER PRICES
In May, the consumer price index for all urban consumers rose 0.2 percent seasonally adjusted (0.4
seasonally adjusted). The index was 3.7 percent above its year earlier level.
INDEX, 1967= 100 (RATIO SCALE)

percent not

INDEX, 1967 = 100 (RATIO SCALE)

340

340

320

320

300

300

280

280

A-

260

260

ALL ITEMS
240

240

220

220

200

200

180

180

160

160

Illllllllll
1982

140
1977

1978

1981

1980

1979

140

1984

1983

SEE NOTE ON TABLE BELOW
SOURCE: DEPARTMENT OF LABOR

1985

COUNCIL OF ECONOMIC ADVISERS

[1967 = 100, except as noted; monthly data seasonally adjusted, except as noted]
Ti ansportati >n

Hou sing
She Her

Period

All
items '

Food
Kent-

Total *

costs

2

NSA

Rel. imp.5
1977
1978
1979
1980
1981
1982
1983
1984

100.0

18.7

37.7

21.8

181.5
195.4
217.4
246.8
272.4
289.1
298.4
311.1

192.2
211.4
234.5
254.6
274.6
285.7
291.7
302.9

186.5
202.8
227.6
263.3
293.5
314.7
323.1
336.5

191.1
210.4
239.7
281.7
314.7
337.0
344.8
361.7

1984: May
June
July
Aug
Sept
Oct
Nov
Dec

309.7
310.7
311.7
313.0
314.5
315.3
315.3
315.5

301.0
301.5
302.6
304.2
304.4
305.4
305.9
307.2

334.2
335.0
336.8
338.5
340.2
340.5
341.2
341.8

1985: Jan
Peb
Mar
Apr
May

316.1
317.4
318.8
320.1
321.3

307.7
309.3
309.2
308.7
308.3

342.3
343.7
344.6
345.9
348.1

1
2

Homeowners'
costs 2

Maintenance

NSA

NSA

and

repairs




and

el and

other
utilities

upkeep

Total '

New
cars

Motor3
fuel

Medical
care

Ener4

gy

All
items
less
food,
energy,

shelter

11.5

48.0

196.3
265.6
369.1
410.9
389.4
376.4
370.7

6.3
202.4
219.4
239.7
265.9
294.5
328.7
357.3
379.5

207.3
220.4
275.9
361.1
410.0
416.1
419.3
423.6

169.5
179.1
191.5
208.3
228.1
245.6
258.4
271.2

207.1
207.4
208.2
209.1
210.2
210.8
210.6
210.9

375.8
371.8
365.2
361.7
364.6
367.4
369.3
368.8

377.3
379.1
380.9
382.0
383.6
385.8
387.4
389.0

425.5
423.6
422.0
421.5
423.7
423.4
424.0
423.0

270.0
270.9
271.7
272.9
273.9
274.7
275.2
275.9

211.6
213.3
214.3
214.3
213.9

363.8
354.2
367.6
378.7
380.5

390.3
392.0
395.3
397.5
399.9

419.8
414.1
422.1
429.9
431.2

277.2
278.7
279.9
280.4
280.5

14.1

0.5

102.5
107.3

5.1
154.2
159.6
166.6
178.4
186.9
191.8
196.5
200.2

3.4

103.0
108.6

8.2
202.2
216.0
239.3
278.6
319.2
350.8
370.3
387.3

21.6

214.7
233.0
256.4
285.7
314.4
334.1
346.3
359.2

177.2
185.5
212.0
249.7
280.0
291.5
298.4
311.7

142.9
153.8
166.0
179.3
190.2
197.6
202.6
208.5

358.7
359.9
362.5
364.1
366.0
367.4
368.6
370.1

107.7
108.2
108.8
109.4
109.9
110.4
110.9
111.4

106.5
106.8
107.6
108.1
108.7
109.1
109.4
109.8

357.3
358.9
360.3
360.1
362.7
361.6
362.9
364.4

385.2
385.8
389.0
391.1
392.6
390.3
390.4
389.4

198.8
198.4
198.9
200.5
201.5
203.0
202.7
202.4

312.4
312.5
311.8
311.8
312.8
313.9
314.5
315.0

371.0
373.2
374.2
375.7
379.4

111.8
112.4
112.9
113.5
114.6

110.0
110.7
110.8
111.3
112.4

366.0
366.8
370.0
368.0
366.2

389.1
388.1
389.8
392.0
392.7

202.4
204.3
205.3
205.4
205.2

315.8
315.6
319.7
322.3
321.6

7.1

Includes items not shown separately.
December 1982=100.
Includes direct pricing of diesel and gasohol beginning September 1981.
4
Fuel oil, coal, and bottled gas; gas (piped) and electricity; and motor fuel. Motor oil, coolant,
etc. also included through 1982.
8
Relative importance, December 1984.
&

Fuel

Appar-

5.5
188.2

NOTE.—NSA indicates data are not seasonally adjusted.
Data beginning 1978 are for all urban consumers; earlier data are for urban wage earners and
clerical workers.
Data beginning 1983 incorporate a rental equivalence measure for homeownership costs and
therefore are not strictly comparable with figures for earlier periods.
Source: Department of Labor, Bureau of Labor Statistics.

23

CHANGES IN PRODUCER PRICES FOR FINISHED GOODS
[Percent change from preceding period; monthly data seasonally adjusted, except as noted]

Period

Chi nge from pr eceding peri id

Change from 3 mont s earlier, ann ual rate

Change from 6 mont s earlier, annual rate

Consum sr goods

Consum er goods

Consum er goods

Total
finished
goods

Capital
equipment

Excluding foods

Foods

Total
finished
goods

Excluding
foods

Foods

Capital
equipment

Total
finished
goods

Capital
equipment

Excluding
foods

Foods

Change
from
year
earlier,
total
finished
goods
NSA

Cha nge, Dec. o Dec., N 3A
3.7
6.9
9.2
12.8
11.8
7.1
3.7
.6
1.7

1976

1977
1978
1979
1980
1981
1982
1983
1984

6.0
6.7
8.5
17.5
14.2
8.5
4.2
-.8
.8

-2.5
6.9
11.7
7.4
7.5
1.4
2.1
2.3
3.5

4.4
6.5
7.8
11.1
13.5
9.2
4.0
1.6
2.1

6.4

7.3
7.9
8.8
11.4
9.2
3.9
1.9
1.8

Cli ange, month to mont h

1984: May
June
July
Aug
Sept
Oct
Nov
Dec

-0.1
0
.2
-.2
0
-.1
.3
0

-0.8
0
1.5
.3
-.1
.1
.5
.4

0.2
j
-.3
-.3
.0
.0
.3
-.0

-0.2
.1
.2
.2
.2

.3
-.3

1985: Janrr
Feb
Mar r
Apr
May

.0
0
.2
.3
.2

-.5
.0
-.2
-1.0
-1.1

-.1
2
.3
1.1
.9

.8
.3
.4
0
0

0
-1.1
1.1
1.1

-3.8
-7.5
2.7
5.1
4.5
-2.2
1.0
3.3

3.9
1.8
.9
-3.1
-2.8
-1.4
1.1
1.1

2.9
2.2
.5
2.1
2.3
.5
.8
-1.1

3.4
2.8
1.8
.8
-.2
-.4
.6
.6

3.3
1.5
.6
-1.7
.2
3.1
3.9

1.5
.1
1.0
2.1
2.9

1.9
-.1
-2.4
-4.6
-8.9

.7
-1.1
.1
4.7
9.2

3.2
3.4
6.5
3.1
1.8

.2
.6
1.0
1.8
1.5

.4
.4
-1.4
-4.6

1.7
-.4
.3
0

o

4.8

1

2.8
2.4
1.6
.3
-.5
-1.1
-1.0
-.9

3.2
3.1
2.9
2.5
2.3
.5
1.4
.6

2.4
2.1
2.3
1.8
1.5
1.4
1.9
1.7

-.3
0
.6
2.7
3.9

1.8
2.1
2.7
3.1
2.6

1.0
.7
.3
.7
1.1

Source: Department of Labor, Bureau of Labor Statistics.

NOTE.—NSA indicates data are not seasonally adjusted.

CHANGES IN CONSUMER PRICES
[Percent change from preceding period; monthly data seasonally adjusted, except as noted]
Housing

Period

All
items l

Food
Total'

Total '

Homeowners'

Renters'

Adden dum: All ite us, percent hange
(annua 1 rate)

Tr insportati on

Shelter
Fuel
and
other
utilities

Apparel
and
upkeep

Total1

New
cars

Motor
fuel 2

Medical
care

Ener3

«y

items
less
food,
energy,
and
shelter

From
previous

From
3
months
earlier

From
6
months
earlier

NSA

NSA
C dange,

4.8
6.8
9.0
13.3
12.4
8.9
3.9
3.8
4.0

0.6
8.0
11.8
10.2
10.2
4.3
3.1
2.6
3.8

9.9
15.2
13.7
10.2
3.6
3.5
4.2

May
June
July
Aug
Sept
Oct
Nov
Dec

0.2
.2
.3
.4
.4
.3
.2
.3

-0.2
.2
.4
.5
.1
.3
.2
.4

0.3
.2
.5
.5
.5
.1
.2
.2

1985: Jan
Feb
Mar
Apr
May

.2
.3
.5
.4
.2

.2
.5
-.0
.2
-.1

.1
.4
.3
.4
.6

1976
1977

1978
1979
1980
1981
1982
1983
1984

5.4
7.6

4.2
8.7
11.5
17.4
15.1
9.9
2.4
4.7
5.2

D ecember to Dec ;mber, }i SA
9.0
8.1
5.9
16.0
13.6
14.5
9.7
1.8
4.2

4.5
4.2
3.2
5.5
6.8
3.6
1.6
2.9
2.0

8.8
4.3
7.7
18.2
14.7
11.0
1.7
3.9
3.1

5.9

4.5
5.1

0.3
.3
.7
.4
.5
.4
.3
.4

0.4
.5
.6
.6
.5
.5
.5
.5

0.3
.3
.7
.5
.6
.4
.3
.4

0.2
.2
.8
.5
.4
-.6
.0
-.3

0.1
-.2
.3
.8
.5
.7
-.1
-.1

0.2
.0
-.2
0
.3
.4
.2
.2

.2
.6
.3
.4
1.0

.4
.5
.4
.5
1.0

.2
.6
.1
.5
1.0

-.1
-.3
.4
.6
.2

0
.9
.5
.0
-.1

.3

5.1

From
year
earlier

8.5
52.2
18.9
9.4
-6.5
1.7
-2.4

8.8
8.8
10.1
10.0
12.5
11.0
6.4
6.1

6.9
7.2
8.0
37.4
18.1
11.9
1.3
-.5
.2

7.2
9.9
9.4
6.1
5.0
4.4

0.8
-0.2
.1 -1.1
.4
1.8
.4 -1.0
.5
.8
.8
.3
.1
.5
-.1
.1

0.5
.5
.5
.3
.4
.6
.4
.4

-0.3
-.4
-.4
-.1
.5
-.1
.1
-.2

0.4
.3
.3
.4
.4
.3
.2
.3

-1.4
2.6
3.8
3.0
.5

.3
.4
.8
.6
.6

-.8
-1.4
1.9
1.8
.3

.5
.5
.4
.2
.0

4.8
7.2

2.6
4.9

6.2
7.4
7.5
6.8
1.6
3.4
2.4

10.1

7.0
5.2
6.5

5.8
6.5

7.7
11.3
13.5
10.4
6.1
3.2
4.3

Cha nge, me nth to nlonth

1984:

1

Includes items not shown separately.
Includes direct pricing of diesel and gasohol beginning September 1981.
'
Fuel oil, coal, and bottled gas; gas (piped) and electricity; and motor fuel. Motor oil, coolant,
etc., also included through 1982.
4
Quarterly changes are shown in the last month of the quarter.
2
3

NOTE.—NSA indicates data are not seasonally adjusted.

24



J

1.3
.8
-.2

.3
.8
.5
0
-.2

4.3
3.4
3.0

3.6
3.7
3.8
3.5
3.6
3.7

4.2
4.2
4.1
4.2
4.2
4.2
4.0
4.0

2.6
3.2
4.1
4.9
4.3

3.4
3.3
3.5
3.7
3.8

3.6
3.5
3.7
3.7
3.7

3.7

3.6
3.2
2.7
3.8
4.5

3.6

3.7

3.2

4.5
4.3

Data beginning January 1978 are for all urban consumers; earlier data are for urban wage earners and clerical workers.
Data beginning January 1983 incorporate a rental equivalence measure for homeownership costs
and therefore are not strictly comparable with data for earlier periods.
Source: Department of Labor, Bureau of Labor Statistics.

PRICES RECEIVED AND PAID BY FARMERS
Prices received by farmers fell 1.5 percent in May, while prices paid by farmers were unchanged.
INDEX, 1977= 100 (RATIO SCALE)

INDEX, 1977=100 (RATIO SCALE)

180

180
-PRICES PAID_

160

160
140

140

120

120

PRICES RECEIVED'

,__,

100

100

80

80

1111

Illllllllll

60

I l l l l l l l l l l I l l l l l l l l l l 60
RA TIO^
140
— 120

RATKy

—

120

r

C~^
80

100

^

~^i
iiiiiiinii

RATIO

1

60 I l l l l l l l l l l
Illllllllll
1977 .
1978

I l l l l l l l l l l

1979

— 100
~—•_ —»>.

r — ' —1
i i i i i i i n i i 1 1 1 1 1 1 1 1 1 11 i i i i i i i n i i I l l l l l l l l l l
*•">—|

1980

1981

1982

1983

1984

80

— 60
|
|
|
|
|
|
|
|
|
|
|
1985

I/RATIO OF INDEX OF PRICES RECEIVED TO INDEX OF PRICES PAID.
COUNCIL OF ECONOMIC ADVISERS

SOURCE- DEPARTMENT OF AGRICULTURE

[1977 = 100]

FVices paid by farmer s

Pri es received by farm era
Period

1977

All farm
products
:

1978
1979
1980
1981
1982
1983
1984

Livestock and
products

All commodities,
services,
interest, taxes,
and wage rates *

taxes, and wage
rates

100
109
125
139
151
155
159
161

100
108
125
138
148
150
153
155

100
106
107
97
93
85
84
87

100
115
132
134
139
133
134
142

100
105
116
125
134
121
127
139

100
124

147
144
143
145
141
146

100
108
123
138
150
157
160
164

Production
items, interest,

Production
items

Ratio 2

1984:

May
June
July
Aug
Sept
Oct
Nov
Dec

145
144
145
143
139
138
137
135

145
145
144
144
136
138
130
125

145
143
145
143
141
139
143
145

165
165
164
164
164
163
164
163

162
162
161
161
160
159
159
159

157
156
155
154
154
152
153
152

88
87
88
87
85
84
84
82

1985:

Jan
Feb
Mar
Apr r.
May

135
135
134
131
129

126
125
127
125
124

145
145
141
136
134

164
164
164
165
165

160
160
160
160
160

154
154
153
153
152

82
82
82
79
78

1
2

Includes items not shown separately.
Percentage ratio of index of prices received by farmers to index of prices j id, interest, taxes,
and wage rates.




NOTE.—The official indexes are published on a 1910-14 base as required by law. The indexes
have been converted to a 1977=100 base to facilitate comparison with other indexes.
Source: Department of Agriculture.

25

MONEY, CREDIT, AND SECURITY MARKETS
MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
In May, growth of Ml and M3 accelerated. M2 rose following a decline in April.
BILLIONS OF DOLLARS*(RATIO SCALE)

BILLIONS OF DOLLARS*(RATIO SCALE)
3,200

3,200

2,800

2,800

2,400

2,400

2,000

2,000

1,600

1,600

M2

1,200

1,200

1,000

1,000
r

i
600

600

500

500

400

400

300

Illllllllll
1977

1978

1980

1979

300

Illllllllll Illllllllll
1983
1982

198)

1984

* AVERAGES OF DAILY FIGURES,- SEASONALLY ADJUSTED
SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

1985

COUNCIL OF ECONOMIC ADVISERS

[Averages of daily figures, except as noted; billions of dollars, seasonally adjusted]

L

Ml

M2

M3

Sum of currency,
demand deposits,
travelers' checks,
and other
checkable
deposits (OCDs)

Ml plus overnight
RPsand
Eurodollars,
MMMF balances
(general purpose
and broker/dealer),
MMDAs, and
savings and small
time deposits

M2 plus large
time deposits,
term RFs, term
Eurodollars, and
institution-only
MMMF balances

Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec '
May
June
July
Aug
Sept
Oct
Nov r
Dec r

335.3
363.0
389.0
414.8
441.8
480.8
528.0
558.5
542.5
547.3
546.9
548.9
551.5
548.3
553.8
558.5

1,286.6
1,388.9
1,497.9
1,631.4
1,794.4
1,954.9
2,188.8
2,371.7
2,255.2
2,269.3
2,280.2
2,292.8
2,308.4
2,319.3
2,346.3
2,371.7

1,472.5
1,646.4
1,803.6
1,988.5
2,235.8
2,446.8
2,701.7
2,995.0
T
2,814.6
' 2,838.8
2,862.0
2,878.8
2,901.0
2,925.0
2,959.9
2,995.0

1,704.2
1,909.7
2,115.8
2,324.7
2,596.5
2,854.5
3,175.9
3,543.8
' 3,327.4
' 3,366.5
3,402.7
3,429.7
3,459.0
3,480.2
3,508.8
3,543.8

2,829.1
3,200.0
3,583.5
3,926.1
4,311.8
4,709.7
r
5,224.6
5,953.2
r
5,515.7
r
5,571.0
r
5,631.0
r
5,690.3
r
5,742.1
r
5,802.5
5,877.9
5,953.2

8.1
8.3
7.2
6.6
6.5
8.8
9.8
5.8
6.3
7.4
5.9
5.6
5.4
3.4
4.2
4.1

1985: Jan '
Feb r
Mar'
Apr'
May*

562.7
569.4
572.1
575.0
581.6

2,398.9
2,421.0
2,429.2
2,428.1
2,445.0

3,020.6
3,041.1
3,055.6
3,057.5
3,077.7

3,568.0
3,598.1
3,624.4
3,628.8

6,018.7
6,074.7
6,130.2
6,191.7

Period

1977:
1978:
1979:
1980:
1981:
1982:
1983:
1984:
1984:

1
Consists of outstanding credit market debt of the U.S. Government, State and local governments, and private nonfinancial sectors; data from flow of funds accounts.
3
Aimual changes are from December to December and monthly changes are from 6 months earlier at a seasonally adjusted annual rate.
NOTE.—The nontransactions portion of M2 is seasonally adjusted as a whole to reduce distortions

26



M3 plus
other liquid
assets

Debt

Debt of
domestic
nonfinancial
sectors
(monthly
average) *

Peroe nt change from yeai or 6
months earlier 2

Ml

M2

10.6

8.0
7.8
8.9

M3

12.3
11.8

9.5

Debt

12.6
13.1
12.0

10.0

10.3
12.4

8.9

9.4

9.6
9.8
9.2

12.0

8.4
7.2
7.5
7.2
7.0
7.2
7.1
8.2
9.2

11.3
10.9
10.1
10.4
10.8
10.3
10.0
10.1
10.5
11.3

10.9
13.9
'13.8
r
!3.7
M3.5
13.5
r
!3.3
'13.2
13.6
14.2

5.9
7.6
7.6

10.7
11.5
10.7

11.4
11.6
10.9

10.0
10.3

9.6
8.6

9.3
8.1

14.2
14.0
14.0
13.9

caused by substantial portfolio shifts arising from regulatory and financial changes in recent years,
especially shifts to HMD As in 1983. A similar procedure is used to seasonally adjust'the remaining
nontransactiona balances in M3.
See p. 27 for components.

Source: Board of Governors of the Federal Reserve System.

COMPONENTS OF MONEY STOCK AND LIQUID ASSETS
[Averages of daily figures; billions of dollars, seasonally adjusted, except as noted]

Period

De-

Currency

mand

deposits

Other
checkable
depos-

its
(OCDs)

Overnight
repurchase
agreements
(KPs),
net, plus
overnight
Eurodollars

NSA
1977: Dec .... 88.6

1978: Dec ....
1979: Dec ....
1980: Dec ....
1981: Dec ....
1982: Dec ....
1983: Dec ....
1984: Dec ....
1984:
May
June
July
Aug
Sept
Oct
Nov
Dec
1985:
Jan
Feb r
Mar r
Apr T
May"

97.6
106.4
116.4
124.0
134.3
148.4
158.7

239.4
253.4
261.3
265.7
235.2
238.6
243.5
248.6

152.8
154.3
155.0
155.9
156.8
157.1
157.9
158.7

246.3
248.9
247.3
246.8
247.5
244.5
246.8
248.6

159.4 249.1
160.5 251.7
161.3 251.9
161.7 252.5
163.0 255.7

103.5
131.3
146.0

14.7
20.3
21.2
28.3
35.9
38.8
53.8
57.5

138.3
139.0
139.4
141.0
142.2
141.8
143.9
146.0
149.0
151.8
153.6
155.3
157.3

4.2
8.5
17.5
28.2
78.2

Money market
mutuaIfund
hala nces
Gener-

al
purpose

and
broker/
dealer

NSA

Institution
only

NSA

Money
market
deposit
accounts
(MMDAs)

Large
denomination
time
deposits '

Term
repurchase
agreements
(RPs)

Term
Eurodollars
(net)

NSA

NSA

307.0
288.6

851.5
784.6
885.6

330.8
416.2

19.1
26.6
29.5
34.0
36.0
34.5
51.8
69.7

399.4
397.8
394.2
388.9
388.6
392.0
402.4
415.1

301.5
300.8
299.1
296.5
294.6
292.6
290.7
288.6

822.6
834.0
843.6
855.0
864.5
872.7
878.5
885.6

369.8
379.5
389.3
392.6
396.0
405.1
410.7
416.2

59.5
59.2
60.0
64.1
66.6
69.3
70.7
69.7

433.7
448.4
457.9
460.3
463.8

288.6
289.4
288.6
287.9
289.5

881.9
877.6
878.6
885.4
891.8

416.9
419.3
423.7
427.2
427.7

65.0
65.7
69.1
73.1
72.2

185.2
138.2
167.5

43.2
379.2
415.1

58.3
55.9
56.3
58.5
56.7
56.8
58.0
57.5

146.5
148.9
150.5
150.6
152.1
155.6
162.0
167.5

45.3
45.7
46.1
46.2
46.9
52.2
58.3
62.7

62.8
69.6
67.7
59.7
64.3

171.9
175.1
177.6
176.3
172.2

65.0
62.2
59.5
59.6
63.5

33.4
61.6
150.6

its

Small
denomination
time
deposits 1

NSA

0.9
3.1
9.5
15.2
38.0
51.1
43.2
62.7

2.4
6.4

Savings
depos-

0.0
.0
.0
.0
.0

1
Small denomination and large denomination deposits are those issued in amounts of less than
$100,000 and more than $100,000, respectively.

NOTE.—See note p. 26.

492.1
481.7
423.3
400.8
344.4
357.8

445.6
521.2
634.6
729.0
823.6

145.0
195.1
222.0
258.9
302.1
328.3

a0-.
oav-

Shortterm
Treas-

t»*d
n s

ury
securities

Bankers'
acceptances

Conimercia
paper

14.1
22.0
27.2
32.0
39.7
43.9
44.1
41.3

62.9

79.2
97.0
98.1
102.8
107.0
135.2
161.8

91.5
83.2

76.4
80.3
79.6
72.3
67.8
67.9
71.1
74.1

93.0
89.3
88.3
86.5
85.6
80.6
81.9
83.2

72.7
241.5
73.0 251.6
73.1 259.9
73.3
269.2
73.6 280.4
73.7 * 279.8
73.9 ' 274.9
74.1 r271.6

46.5
47.7
48.2
47.8
46.8
44.8
42.5
41.3

152.0
155.5
159.4
160.5
157.2
156.7
157.6
161.8

74.4
74.9
75.3
75.8

40.8
42.5
44.3
44.0

159.6
164.8
169.8
168.9

20.2
31.8
44.7
50.3
67.5
81.7

r
r

81.2
81.3
84.6
80.3
80.0

78.3
81.9
108.4
133.8
150.3
188.8
223.8
r
271.6

272.7
275.0
279.5
282.6

Travelers checks are a component of money stock but are not shown here.
NSA indicates data are not seasonally adjusted.
Source: Board of Governors of the Federal Reserve System.

CONSUMER INSTALLMENT CREDIT
[Millions of dollars; seasonally adjusted]

Net change in in stallment ere dit outstandir«'

Ins tallment credi! outstanding (end of perio d)
Period
Total
1980:
1981:
1982:
1983:
1984:

Automobile

Revolving

Mobile
home

Other

Revolving

16,617
15,368
47,731
76,366

7,662
5,142
17,559
29,964

5,409
4,710
11,434
18,487

1,107
2,601
1,282

779

2,439
2,915
17,456
27,136

1,851
2,638
1,356

143
138
191
334
217
127
392
-91
117

2,458
2,676
2,810
2,288
2,060
1,858
2,031
2,008
2,570

1,957
2,527
2,631
2,126

159
282

2,538
3,034
2,331
2,438

Dec
Dec
Dec
Dec
Dec

296,290
312,907
328,275
376,006
452,372

112,134
119,796
124,938
142,497
172,461

54,900
60,309
65,019
76,453
94,940

18,783
19,890
22,491
23,773
24,552

110,473
112,912
115,827
133,283
160,419

1984: Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

400,182
409,275
416,357
422,838
428,860
433,842
439,473
445,553
452,372

151,273
154,914
157,639
160,726
163,208
164,721
167,225
169,774
172,461

82,880
85,518
86,874
87,646
88,909
90,393
91,881
93,495
94,940

23,911
24,049
24,240
24,574
24,791
24,918
24,526
24,435
24,552

142,118
144,794
147,604
149,892
151,952
153,810
155,841
157,849
160,419

6,792
9,093
7,082
6,481
6,022
4,982
5,631
6,080

6,819

2,340
3,641
2,725
3,087
2,482
1,513
2,504
2,549
2,687

1985:

459,595
468,636
476,978
485,248

175,348
178,546
181,937
185,425

96,897
99,424
102,055
104,181

24,393
24,675
24,664
24,882

162,957
165,991
168,322
170,760

7,223
9,041
8,342
8,270

2,887
3,198
3,391
3,488

Jan
Feb
Mar
Apr

1

For year-end data, change from preceding year-end; for monthly data, change from preceding
month.




Mobile
home

Automobile

Total

772
1,263
1,484
1,488
1,614
1,445

— 11

218

Other

Source: Board of Governors of the Federal Reserve System.

27

BANK LOANS AND SECURITIES, AND RESERVES
In April, commercial and industrial loans were about unchanged from their March level.
BILLIONS OF DOLLARS * (RATIO SCALE)
2,000

BILLIONS OF DOLLARS * (RATIO SCALE)
2,000
1,800 i— ALL COMMERCIAL BANKS
1,600
1,400

1,800
1,600
1,400

1,200

1,200

1,000

1,000
800

800

LOANS AND LEASES
600

600

400

400

U.S. GOVERNMENT SECURITIES
200

-V

200
160

160

120

120

80

80

Illllllllll

60
1977

60

1979

1978

1980

1981

1982

1983

1984

• SEASONALLY ADJUSTED.
SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

1985

COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars, seasonally adjusted, except as noted]

Al commercial ban k s 1

Depo itory jnstitutio ns

R eserves adjust 3d
Loans a nd leases
Period

1977:
1978:
1979:
1980:
1981:
1982:
1983:
1984:
1984:

1985:

Dec
Dec
Dec
Dec
Dec
Dec
Dec
Dec
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Mar
Apr"
May"

Total loans
and
securities

4

891.4
1,013.8
1,135.4
1,239.7
1,307.4
1,400.5
1,553.0
1,714.8
1,612.9
1,629.8
1,636.6
1,652.6
1,662.1
1,674.9
1,682.8
1,701.1
1,714.8
1,724.0
1,742.3
1,758.9
1,765.7

Total 2

4

632.2
746.9
849.1
914.5
967.4
1,032.8
1,122.7
1,314.7
1,213.2
1,232.0
1,243.2
1,256.7
1,264.2
1,275.0
1,284.3
1,300.6
1,314.7
1,321.5
1,335.6
1,353.3
1,364.5

Commercial
and industrial
loans
211.0
246.1
291.1
326.9

4

355.1
391.5
412.8
468.1
438.5
448.0
452.2
455.0
458.1
460.0
463.0
467.1
468.1
468.4
473.4
480.4
480.9

Total

136.6
137.6
144.4
170.9
179.6
202.7
260.8
260.2
257.6
257.3
253.7
256.4
257.1
258.0
257.0
259.4
260.2
260.1
265.8
266.9
261.1

1
Data are prorated averages of Wednesday figures for domestically chartered banks and averages
of month-end data for foreign-related institutions.
2
Excludes loans to commercial banks in the United States.
3
Data are averages of daily figures.
4
Beginning September 26^ 1984 a transfer of loans from Continental Illinois National Bank to
the FDIC reduced total loans and securities and total loans by $1.9 billion, commercial and industri-

28



Borr swings
(millions of dollars,
unad usted)

for changes i n

res erve requirem ents

U.S.
Government
securities

122.7
129.2
141.9
154.4
160.4
165.0
169.6
139.9
142.1
140.5
139.7
139.5
140.8
141.9
141.5
141.1
139.9
142.4
140.8
138.7
140.1

26.63
27.91
29.09
31.04
32.10
34.28
36.14
38.71
37.11
37.45
38.29
38.24
38.39
38.14
37.76
38.11
38.71
39.71
40.37
40.57
40.92
41.39

borrowed
26.06
27.04
27.62
29.35
31.46
33.65
35.36
35.52
35.88
34.46
34.99
32.32
30.37
30.90
31.74
33.50
35.52
38.32
39.08
38.97
r
39.59
40.06

3

Required

26.44
27.67
28.76
30.52
31.78
33.78
35.58
37.86
36.62
36.87
37.52
37.63
37.70
37.52
37.14
37.42
37.86
38.97
39.46
39.80
40.18
40.59

Total

569
868
1,473
1,690

636
634
774
3,186
1,234
2,988
3,300
5,924
8,017
7,242
6,017
4,617
3,186
1,395
1,289
1,593
1,323
1,334

Seasonal

55
135
81
116
54

33
96
113
139
196
264
308
346
319
299
212
113
62
71
88
135
165

al loans by $1.4 billion, and real estate loans (not shown here) by $0.4 billion.
NOTE.—Series for all commercial banks beginning January 1984 are not strictly comparable with
data for earlier periods, largely because beginning January- 1984 certain obligations of States and
political subdivisions are included in loans rather than in other securities.
Source: Board of Governors of the Federal Reserve Svstem.

SOURCES AND USES OF FUNDS, NONFARM NONFINANCIAL
CORPORATE BUSINESS
[Billions of dollars; quarterly data at seasonally adjusted annual rates]
Sources

Uses
External

Period

Credit market fu nds

Total

Internal '
Securities

Total
Total

and

mortgages
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984 '.
1983: I
II
HI
IV
1984: I 'r

190.3
157.0
211.0
254.1
317.5
345.2
335.2
364.2
309.4
436.3
482.6
333.9
449.2
443.3
519.1
520.8
483.4
430.9
495.3
449.6

n.
Hi"
TV.

1985:

I*

85.6
119.7
134.2
157.4
175.7
188.8
189.5
230.4
234.3
280.5
334.8
250.4
269.7
292.5
309.3
319.6
331.7
340.7
347.1
355.0

70.2
30.8
54.7
72.4
80.5
88.2
90.9
91.5
81.4
87.8
98.8
68.7
86.5
66.6
129.4
117.2
81.2
59.2
137.7
57.8

104.7
37.3
76.8
96.7
141.8
156.4
145.7
133.8
75.0
155.9
147.8
83.5
179.5
150.7
209.8
201.2
151.7
90.2
148.2
94.6

26.3
38.7
38.2
35.8
32.8
20.9
52.4
21.8
43.9
56.4
21.1
67.0
85.9
37.0
35.7
-18.8
-72.0
-14.3
20.7
-15.7

1

Undistributed profits (after inventory valuation and capital consumption adjustments), capital
consumption allowances, and foreign branch profits, dividends, and subsidiaries' earnings retained
abroad.
2
Consists of tax liabilities, trade debt, and direct foreign investment in the U.S.

Loans and
short-term
paper
43.9
-7.9
16.5
36.6
47.7
67.3
38.5
69.7
37.5
31.4
119.9
1.7
.6

29.6
93.6
136.0
153.2
73.5
117.0
73.5

Other 2

34.5
6.5

22.1
24.3
61.3
68.2
54.8
42.3
-6.4
68.1
49.1
14.8
93.1
84.1
80.4
84.1
70.6
31.0
10.5
36.7

Total

190.1
150.9
201.8
237.6
293.6
343.7
317.6
334.2
258.0
384.3
439.4
282.3
390.5
395.4
468.8
483.8
441.9
383.9
448.0
413.6

Capital
expenditures 3

137.9
109.7
148.3
175.1
201.6
219.4
221.2
271.3
229.6
256.2
367.8
206.9
255.3
270.6
291.9
354.5
364.4
388.3
364.1
371.7

Increase in
financial
assets

52.2
41.2
53.5
62.5
92.0
124.3
96.5
62.9
28.4
128.1
71.6
75.4
135.1
124.8
177.0
129.3
77.5
—4.4
83.9
41.9

Discrepancy
(sources less
uses)

0.2
6.0
9.2

16.5
23.8
1.5

17.6
30.0
51.3
52.1
43.2
51.5
58.7
47.8
50.3
37.0
41.6
46.9
47.4
35.9

3
Plant and equipment, residential structures, inventory investment, and mineral rights from U.S.
Government.
Source: Board of Governors of the Federal Reserve System.

CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL
CORPORATIONS
[Billions of dollars, except as noted]

C urrent liabiliti JS

Curren assets
End of period
Total

Cash

Governsecurities

SEC series: 2
1970
1971
1972
1973
1974
QFR-FRB series: 3
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984 *
1983: I
II

ni

IV
1984: I

n
m*
TV

1

492.3
529.6
599.3
697.8
790.7

50.2
53.3
59.0
66.3
71.1

735.4
759.0
827.4
912.7
1,043.7
1,214.8
1,327.0
1,418.4
1,432.7
1,557.3
1,680.9
1,444.2
1,468.0
1,522.8
1,557.3
1,600.6
1,630.6
1,667.2
1,680.9

73.2
82.1
88.2

97.2
105.5
118.0
126.9
135.5
147.0
165.8
161.6
143.1
147.9
150.5
165.8
159.3
155.0
150.6
161.6

7.7

11.0
10.6
12.8
12.3
11.1
19.0
23.5
18.2
17.2
16.7
18.7
17.6
22.8
30.6
36.4
26.0
28.2
27.0
30.6
35.1
36.7
32.3
36.4

Notes and
accounts
receivable

Invento-

206.1
221.1
248.2
288.5
322.1

193.3
200.4
225.7
263.9
313.6

35.0
43.8
55.8

265.8

319.5
315.9
342.5
376.9

65.9
69.9
80.3
90.1
101.1
116.0
131.8
149.5
165.2
183.7

272.1
292.9
330.3
388.0
459.0
506.8
532.0

519.2
577.8

617.7
525.3
539.3
565.0
577.8
596.9

612.4
628.1
617.7

Total current assets divided by total current liabilities.
Based on data from Statistics of Income, Department of the Treasury.
Based on data from Quarterly Financial Report for Manufacturing, Mining, and Trade Corporations, Effective mid-1982, responsibility for the Quarterly Financial Report was transferred to
the Department of Commerce, Bureau of the Census from the Federal Trade Commission.
2
3




Other
current
assets

431.8
505.1
542.8
583.7
578.6
599.3
659.0
577.6
576.2
597.3
599.3

623.1
633.3
662.2
659.0

66.4
71.7

206.3

172.1
176.4
183.0
183.7
186.3
193.2
194.0
206.3

Total

Notes and
accounts
payable

Other
current
liabilities

Net
working
capital

ratio '

304.9
326.0
375.6
450.9
530.4

211.3
220.5
282.9
340.3
402.3

105.5
92.7
110.7
128.1

187.4
203.6
223.7
246.9
260.3

1.615
1.625
1.595
1.548
1.491

453.4

269.8
264.2
282.1
317.6
383.0
460.8
513.6
546.3
543.0
577.9
627.7
530.9
536.6
559.4
577.9
584.1
604.6
624.8
627.7

183.6
187.4
213.0
239.6
286.5
346.5
375.7
423.7
433.8
465.2
521.9
452.6
453.6
467.2
465.2
495.0
507.3
518.5
521.9

282.0
307.4
332.4
355.5
374.3
407.5
437.8
448.4
455.9
514.3
531.4
460.8
477.8
496.3
514.3
521.6
518.6
523.9
531.4

1.622
1.681
1.671
1.638
1.559
1.505
1.492
1.462
1.467
1.493
1.462
1.469
1.483
1.483
1.493
1.483
1.466
1.458
1.462

451.6
495.1
557.1
669.5
807.3
889.3
970.0
976.8
1,043.0
1,149.6
983.4
990.2
1,026.6
1,043.0
1,079.0
1,111.9
1,143.3
1,149.6

93.6

NOTE.—SEC series not available after 1974. See Federal Reserve Bulletin, July 1978, for details regarding the series.
Sources: Board of Governors of the Federal Reserve System, Department of Commerce (Bureau
of the Census), Federal Trade Commission, and Securities and Exchange Commission.

29

INTEREST RATES AND BOND YIELDS
Interest rates fell again in June.
PER CENT PER ANNU V\
16

PERCENT PER ANNUM
16

i

14

n\i

J

i\

!

/

i
rf

12

I-'

i

frH
*»'
>y
/f\i| /

'

if

'i/ft
V ^u
: f

«•"*/

1

y

f

(,

' \V

IRE.USURY
1 ILLS

A/

V

6

12

1

,

10

X \
A
'\

RATE
FEDERAL
RESERVE
BANK OF
NEW YORK

^

"

......

/\
\
1

\ y\

\ _.

J

V

"

;l

I/

...

x

!

j ;

r~? -

^J

_x \
'•'

h

\/

j /
•;

'-'-f\

\/'

\
1

!

-A
/
*•>

(wooors)

\

/\.

T"

14

\ CORPORATE AM BC

l] / ' \

I/ j

r^

f'^
' 1

A

V 1 1

1: /

10

i.*
•

0

/

4

-;

i i I II 1 iI IiI

1977

1978

M

|

1 1 1 i 1 1 1 1 1

II

1 1 1 1 1 M 1

1980

1979

I 11

1 1

1 1 1 1 1 1 1 1 1

1982

1981

M

1 1 1 1 1 1 M

1 1 1

1 i 1 i 1 1 M 1 1 \k 4

1984

1983

1985

COUNCK O ECONOMIC ADVISERS

SOURCE; SEE TABIE KLO

[Percent per annum]

U.S. T reasuiy security rields
Period

:

3-month Mils 1

Constant nlaturities
3-year

1979

1980
1981
1982
1983
1984

10.041
11.506
14.029
10.686
8.63
9.58

9.72
11.55
14.44
12.92

10-year

High-grade
municipal
bonds
(Standard &
Poor's) '

Corporate
Aaa bonds4
(Moody's)

6.39

10.45
11.89

9.44
11.46
13.91
13.00
11.10
12.44

9.90
9.94
10.13
10.49
10.41
9.97
8.79
8.16
7.76
8.22
8.57
8.00
7.56
7.01

12.75
13.18
13.08
12.50
12.34
11.85
10.90
10.56
10.43
10.55
11.05
10.49
9.75
9.04

13.41
13.56
13.36
12.72
12.52
12.16
11.57
11.50
11.38
11.51
11.86
11.43
10.85
10.14

10.55
10.71
10.50
10.03
10.17
10.34
10.27
10.04
9.55
9.66
9.79
9.48
9.08

7.69
7.28
7.22
7.03
7.21
6.73
7.06

9.75
9.43
9.36
8.97
9.06
8.90

10.89
10.60
10.39
10.00
10.12
10.08

8.90
9.03
8.83
8.68
8.75
8.76

8.51
11.23
11.57
9.47
10.15

Prime
commercial
paper,

Discount rate
(N.Y. F.R.
Bank)8

9.63
11.94
14.17
13.79
12.04
12.71

10.91
12.29
14.76
11.89
8.89
10.16

13.28

13.55
13.44
12.87
12.66
12.63
12.29
12.13
12.08
12.13
12.56
12.23
11.72
10.92

10.87
11.23
11.34
11.16
10.94
10.16
9.06
8.55
8.15
8.69
9.23
8.47
7.88
7.36

9.00-9.00
9.00-9.00
9.00-9.00
9.00-9.00
9.00-9.00
9.00-9.00
9.00-8.50
8.50-8.00
8.00-8.00
8.00-8.00
8.00-8.00
8.00-8.00
8.00-7.50
7.50

12.00-12.50
12.50-13.00
13.00-13.00
13.00-13.00
13.00-12.75
12.75-12.00
12.00-11.25
11.25-10.75
10.75-10.50
10.50-10.50
10.50-10.50
10.50-10.50
10.50-10.00
10.00

11.77
11.50
11.27
10.93
10.88
10.86

7.96
7.60
7.54
7.31
7.40
7.21

8.00-8.00
8.00-7.50
7.50-7.50
7.50-7.50
7.50-7.50
7.50-7.50
7.50-

10.50-10.50
10.50-10.00
10.00-10.00
10.00-10.00
10.00-10.00
10.00- 9.50
9.50-

10.28
11.77
13.41
11.02

8.50
8.80
Open-close

1984: May
June
July
Aug
Sept
Oct
Nov
Dec
1985: Jan
Feb
Mar
Apr
May r.
June p.
Week ended:
1985: May 18
25
June 1
8
15
22
29
1

Rate on new issues within period; bank-discount basis.
Yields on the more actively traded issues adjusted to constant maturities by the Treasury Department.
3
Weekly data are Wednesday figure!.
* Series excludes public utility issues for January 17, 1984 through October 11, 1984 due to lack
of appropriate issues.
* Bank-discount basis. Prior to November 1, 1979, data are for 4-6 months paper.
1

30



Prime rate
charged by
banks'

New-home
mortgage
(FHLBB)'

12.67
15.27
18.87
14.86
10.79
12.04
Open-close

10.78
12.66
14.70

15.14
12.57
12.38

,
12.18
12.10
12.50
12.43
12.53
12.77
12.75
12.55
12.27
12.21
11.92
12.05
12.06

8

Average effective rate for year; opening and closing rate for month and week.
7
Effective rate (in the primary market) on conventional mortgages, reflecting fees and charges as
well as contract rate and assumed, on the average, repayment at end of 10 years. Rates beginning
January 1973 not strictly comparable with prior rates.
Sources: Department of the Treasury, Board of Governors of the Federal Reserve System, Federat Home Loan Bank Board, Moody's Investors Service, and Standard & Poor's Corporation.

COMMON STOCK PRICES AND YIELDS
Stock prices rose again in June.
INDEX, DEC. 31, 1965 = 50

INDEX, DEC. 31, 1965 = 50

110

110

100

100

90

90

COMPOSITE STOCK PRICE INDEX
(NYSE)

80

80

70

70

60

60

50

50

Minium i i i i i l n i i i

40

1977

1978

iiiiilniii
1979

1982

1981

1980

l l l l l l l l l l l lllllllllll lllllllllll
1983

1984

40

1985

PERCENT

PERCENT

20
EARNINGS-PRICE RATIO ON COMMON STOCKS
(S&P)

15

\

10
5
1977

1978

1979

1980

1985

SOURCES; NEW YORK STOCK EXCHANGE AND STANDARD & POOR'S CORPORATION

COUNCIL OF ECONOMIC ADVISERS

Common st ock 5yields
(perce nt)

Co mmon stock price s '

Period

NCTf York Stock Ex 'hange indexes (I ec. 31, 1965 — 5 O) 2
Composite

1979
1980
1981
1982
1983
1984
1984: May
June
July

Aug
Sept
Oct
Nov
Dec
1985:
Jan
Feb
Mar
Apr
May r
June ".
Week ended:
1985:
May 18
25
June 1
8
15
22
1
2
3
4
5

Industrial

Transportation

Utility

Dow-Jones
industrial
average 3

Dividendprice ratio

58.32
68.10
74.02
68.93
92.63
92.46
90.07
88.28
87.08
94.49
95.68
95.09
95.85
94.85
99.11
104.73
103.92
104.66
107.00
109.37

64.76
78.70
85.44
78.18
107.45
108.01
105.94
104.04
102.29
111.20
112.18
110.44
110.91
109.05
113.99
120.71
119.64
119.93
121.88
123.93

47.34
60.61
72.61
60.41
89.36
85.63
81.62
79.29
76.72
86.86
86.88
86.82
87.37
88.00
94.88
101.76
98.30
96.47
99.66
105.48

38.20
37.35
38.91
39.75
47.00
46.44
44.22
43.65
44.17
46.49
47.47
49.02
49.93
50.58
51.95
53.44
53.91
55.51
57.32
59.56

61.42
64.25
73.52
71.99
95.34
89.28
85.06
80.75
79.03
87.92
91.59
92.94
95.28
95.29
101.34
109.58
107.59
109.39
115.31
118.32

844.40
891.41
932.92
884.36
1,190.34
1,178.48
1,143.42
1,121.14
1,113.27
1,212.82
1,213.51
1,199.30
1,211.30
1,188.96
1,238.16
1,283.23
1,268.83
1,266.36
1,279.40
1,311.80

103.01
118.78
128.05
119.71
160.41
160.46
156.55
153.12
151.08
164.42
166.11
164.82
166.27
164.48
171.61
180.88
179.42
180.62
184.90
188.59

5.47
5.26
5.20
5.81
4.40
4.64
4.72
4.86
4.93
4.62
4.54
4.62
4.61
4.68
4.51
4.30
4.37
4.37
4.31

107.24
109.14
108.94
110.11
108.91
108.76

121.92
124.26
124.07
125.04
123.49
122.89

99.68
101.92
103.66
106.40
104.68
104.74

57.60
58.43
58.33
59.41
59.14
59.91

116.88
118.03
116.82
118.91
117.91
117.93

1,277.54
1,303.40
1,306.42
1,318.10
1,305.94
1,304.95

185.22
188.76
188.21
190.05
187.72
187.37

4.30
4.20
4.23
4.17
4.23
4.26

Average of daily closing prices.
Includes all the stocks (more than 1,500) fisted on the NYSE.
Includes 30 stocks.
Includes 500 stocks.
Standard & Poor's series. Dividend-price ratios based on Wednesday closing prices. Earnings-




Finance

Standard &
Poor's
composite
index (194143 = 10)4

Earningsprice ratio

13.46
12.66
11.96
11.60
8.03
10.02
10.56
r

9.95

10.00

price ratios based on prices at end of quarter.
NOTE.—All data relate to stocks listed on the New York Stock Exchange (NYSE).
Sources: New York Stock Exchange, Dow-Jones & Company, Inc., and Standard & Poor's Corporation.
,.

31

FEDERAL FINANCE
FEDERAL BUDGET RECEIPTS AND OUTLAYS, AND DEBT
In the first 7 months of fiscal year 1985 there was a budget deficit (including off-budget outlays) of $118.7 billion,
compared to a deficit of $108.3 billion a year earlier.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

1,000

1,000
_

BUDGET RECEIPTS AND OUTLAYS ^

900

900

-BUDGET OUTLAYS^-

800

800

700

700

600

600
BUDGET RECEIPTS

500

500

400

400

_

BUDGET SURPLUS OR DEFICIT (-) -

-100

-100

-200

-200
1977

1978

1979

1980

1981

1982

1984

1983

1985

1986

FISCAL YEARS
\J INCLUDES OUTLAYS OFF-BUDGET UNDER CURRENT LAW, PROPOSED TO BE ON-BUDGET.
SOURCES: DEPARTMENT OF THE TREASURY AND OFFICE OF MANAGEMENT AND BUDGET

COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars]
Coir ponents of bu iget

Budget totals
(Including outlays off-bu( get under
current law which are prc posed to be
me luded on-budg ot)
Period
Receipts

Fiscal year or period:
1973
1974
1975
1976
Transition quarter
1977
1978
1979
1980
1981
1982
1983
1984
1985 (estimates) *
1986 (estimates) 1
Cumulative total, first 7 months:
Fiscal year 1984
Fiscal year 1985

Outlays

600.6
666.5
740.6
794.3

245.7
269.4
332.3
371.8
96.0
409.2
458.7
503.5
590.9
678.2
745.7
808.3
851.8
953.9
971.7

384.5
434.8

492.7
553.5

230.8
263.2

279.1
298.1
81.2
355.6
399.7
463.3

517.1
599.3

617.8

•i from Currenl Rutlyrt Kntimatr», Office of Management mid Budget, April 15, 1985.

32



Surplus or
deficit ( — )

Outlays
Off-budget
under
current
law;
proposed to
be included
on-hudget

Gross Fedei al debt (end
of pe riod)

On-budget u nder current
la w

Outlays

Held by
the public

Surplus or
deficit (-)

343.0
346.1
396.9
480.3
498.3

-73.7
-14.7
-53.6
59.0
-40.2
-73.8
-78.9
-127.9
-207.8
-185.3
-213.3
-177.4

0.1
1.4
8.1
7.3
1.8
8.7
10.4
12.5
14.2
21.0
17.3
12.4
10.0
10.3
.5

245.6
267.9
324.2
364.5
94.2
400.5
448.4
491.0
576.7
657.2
728.4
796.0
841.8
943.6
971.2

-14.8
-4.7
-45.2
-66.4
-13.0
-44.9
48.6
-27.7
-59.6
-57.9
-110.6
-195.4
-175.4
-203.0
-176.9

468.4
486.2
544.1
631.9
646.4
709.1
780.4
833.8
914.3
1,003.9
1,147.0
1,381.9
1,576.7
1,841.9
2,073.9

794.4
929.4
1,141.8
1,312.6
1,513.9
1,692.5

-108.3
-118.7

2.0
2.9

490.8
550.6

106.3
-115.7

1,490.7
1,737.1

1,244.4
1,435.6

-14.9
-6.1
-53.2

.Sources: Department of ihe Treasury and Office of Management and Budget.

551.8
610.9
644.6

715.1

FEDERAL BUDGET RECEIPTS BY SOURCE AND
OUTLAYS BY FUNCTION
In the first 7 months of fiscal year 1985 budget receipts were $50.3 billion higher than a year earlier and budget
outlays (including off-budget items) were $60.8 billion higher.
BILLIONS OF DO LLARS

BILLIO NS OF DOLLARS
—

BUDGET RECEIPTS

INDIVIDUAL INCOME TAXES

u-

•-""

200

._.—-—
—

~~

r

100

—

300

J-

— »" ""™

y

„
_-. — - — • — ——rdRPOBATinw IKirOMF TAXFS

___

_.—•—"
-

^

_

200

SOCIAL INSURANCE
TAXES AND CONTRIBUTIONS

—

100

0

0

700

700

BUDGET OUTLAYS-!/ •
NONDEFENSE

600

600

_^,

500

^~"

400

500

_^^

400

300

300
NATIONAL DEFENSE

-V

200

200
100

100
1978

1977

1979

1981

1980

1983

1982

1984

1985

1986

FISCAL YEARS
_i/ INCLUDES OUTLAYS OFF-BUDGET UNDER CURRENT LAW, PROPOSED TO BE ON-BUDGET.
SOURCES: DEPARTMENT OF THE TREASURY AND OFFICE OF MANAGEMENT AND BUDGET

COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars^

Bu dget

Budget

rec-ei] ts

To tal

Social
Period
Total

vidual
income
taxes

Corporation
income
taxes

ance
taxes
and
contri-

Other

Including offbudget

Onbudget
items

National defense '

Total

Department of
Defense,

Intern tional
affn
Including offbudget

Onhudget

6.4
6.4
7.5
7.5

5.6
4.9
6.0
6.2
10.8
11.2
10.0

7.6
9.2

utlays

Ot

llealt h a n d
Social
security and
medicare!

Including offbudget

Onbudget

Net
interest '

Including offbudget

er
Onbudget
items

Fiscal year or period:

1976
1977
1978
1979
1980
1981
1982
1983
1984

298.1
355.6
399.7
463.3

517.1
599.3

617.8

1985 (estimates) 2
1986 (estimates) 2

600.6
666.5
740.6
794.3

Cumulative total, first 7
months:
Fiscal year 1984
Fiscal year 1985

384.5
434.8

1
2
3

131.6
157.6
181.0
217.8
244.1
285.9
297.7
288.9
296.2

331.1
358.4

179.7
205.9

90.8
106.5
121.0
138.9
157.8
182.7
201.5

37.0
56.9
69.5
76.2

209.0

288.7

34.3
36.6
37.8
40.8
50.6
69.5
69.3
65.6
71.7
72.9
71.0

30.5
35.4

133.8
151.9

40.5
41.7

41.4
54.9
60.0

65.7
64.6
61.1
49.2

241.7
267.1

371.8
409.2
458.7
503.5
590.9
678.2
745.7
808.3

364.5
400.5
448.4

491.0
576.7
657.2
728.7
796.0

88.1

97.2
104.5
116.3
134.0
157.5
185.3

95.3
102.3
113.7
131.0
153.8
180.7
204.4
220.8
246.3
277.5

12.7
13.1
12.3
11.8
15.9
19.0
18.0

125.9
137.2

(3>
(3>

851.8

841.8

953.9

943.6

971.7

971.2

209.9
227.4
253.8
285.7

492.7
553.5

490.8
550.6

129.7
141.6

There are no outlays off-budget under current law in this function.
Estimates from Currt'iit Hiidgfl Kstlmuteif, Office of Manngeincnt , nd Budget, April 15, 1985.
Not available.

NOTK.—Outlays off-budget under eurrent law arc proposed to be on-budget.
Starting in fiseal 1985 military retired pay is financed from a trust fund in the income security
function. The national defense function includes accrual charges to pay for retirement benefits




89.6

9.0
13.1
16.6
17.7

89.7
104.4

116.6
130.6
150.6
178.7
202.5
223.3
235.8
256.0
268.6

136.4
145.6

76.5
78.3

80.0
86.9
109.7
126.6
135.2
151.2
143.1
162.1
151.2

(3)
(3>

76.5
78.3
80.0
86.9
109.6
125.8
134.5
150.8
143.0
162.1
151.2

26.7
29.9
35.4
42.6
52.5
68.7
85.0
89.8
111.1
129.6
141.3

93.0
114.7
119.6
131.4
133.5
125.4
122.3
118.6
133.4
106.9

85.8
105.8
108.5
119.2
115.3
111.1
113.2
111.5
125.5
106.7

86.5
100.4

61.9
75.2

(3)
(3)

68.6
78.5

82.8

76.3

earned by currently active duty personnel, and these are offset in the undistributed offsetting receipts (employer share, employee retirement).
t)ata for all periods hi this table are shown on as comparable a basis as is feasible.
Data shown here exclude the transition quarter.
Sources: Department of the Treasury and Office of Management and Budget.

33

FEDERAL SECTOR, NATIONAL INCOME ACCOUNTS BASIS
In the first quarter of 1985, according to revised data, Federal receipts rose $49.5 billion (annual rate) and
expenditures rose $16.8 billion, yielding a deficit of $165.1 billion.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
1,000

1,000

900

900

400

400

SURPLUS OR C>EFICIT(-)

feg3£2l22£2 i"j—~u&v,n
£3

I'I i
\

I I I I I \1 I I
^A
%\\ I I
I
I

I

I|

i

—
-200
1977

1978

1980

1979

19 93

19f 92

1981

—

100

-200

1985

19 84

CALENDAR YEAR!
:OUNCIIO F

SOURCE: DEPARTMENT OF COMMERCE

ECONOMIC ADVISER •3

[Billions of dollars; quarterly data at seasonally adjusted annual rates]
Federal (government expenditur es

Federal Governmeiit receipts

Period
Total

Fiscal year:
1980
1981
1982
1983
1984
Calendar year:
1980
1981
1982
1983
1984
1982: m
IV
1983: I

n
m

1984:

IV
I

1985:

IV
I r.

n
in

Personal
tax and
nontax
receipts

Corporate
profits
tax
accruals

Indirect
business
tax and
nontax
accruals

Contributions for
social
insurance

Total

Purchases
of goods
and
services

Transfer
payments

Grantsin-aid to
State
and
local
governments

525.9
609.2
626.4
627.1
687.6

250.4
289.4
311.4
294.1
303.2

69.9
69.3
50.9
53.8
70.1

35.5
53.5
50.3
51.0
55.2

170.0
197.0
213.9
228.3
259.1

576.5
668.2
740.0
816.4
857.9

189.3
218.4
250.6
273.2
285.2

239.4
279.5
310.6
344.6
348.4

86.7
90.1

540.9
624.8
616.7
641.1
704.7
609.9
608.3
619.8
649.3
640.2
655.0
686.4
704.3
706.2
721.9
771.4

257.7
298.7
306.2
295.2
315.0
298.8
300.9
298.2
304.7
284.6
293.3
301.6
310.7
319.7
327.9
362.2

70.3
65.7
46.6
59.8
70.8
47.5
42.0
46.9
59.2
66.7
66.5
73.0
75.6
65.3
69.1
67.4

39.0
56.4
48.4
52.4
55.5
47.5
48.2
47.1
53.8
54.0
54.5
54.1
55.9
56.1
55.9
.56.4

173.9
204.1
215.5
233.7
263.4
216.1
217.1
227.6
231.7
234.9
240.7
257.6
262.0
265.2
269.0
285.3

602.1
689.1
764.9
819.7
880.5
773.6
818.9
805.6
816.7
821.1
835.5
847.6
868.0
886.8
919.7
936.5

197.0
228.9
258.9
269.7
295.4
261.6
279.4
273.0
270.5
269.2
266.3
267.6
296.4
302.0
315.7
319.9

251.5
286.8
321.6
345.6
353.0
327.0
344.4
340.9
348.1
343.4
350.1
347.7
350.1
353.8
360.4
370.3

88.7
87.9
83.9
86.3
93.2
83.0
84.6
85.5
86.3
86.7
86.5
90.6
93.2
92.1
97.0
95.1

Sources: Department of Commerce (Bureau of Economic Analysis), Department of the Treasury,
and Office of Management and Budget.

34



83.4
85.7
90.8

or deficit

Subsidies
Wage
accruals
less
disbursements

national
income
and
product
accounts

Net
interest
paid

current
surplus of
Government
enter-

50.7
67.7
82.3
90.3
109.7

10.4
12.5
13.0
22.2
23.9

0.0
.1
-.0
-.4
.1

-50.7
-58.9
-113.6
-189.3
-170.3

53.4
73.3

11.5
12.3
16.1
23.4
22.3
14.5
23.5
18.5
20.5
24.1
30.6
34.4
17.7
16.5
20.7
23.1

.0
.1
-.0
-.4
.1
.0
.0
.0
-1.3
-.4
.0
.2
.2
-.4
.5
.1

-61.2
-64.3
-148.2
-178.6
-175.8
-163.7
-210.6
-185.7
-167.3
-180.9
-180.5
-161.3
-163.7
-180.6
-197.8
-165.1

84.4
94.2
116.7
87.5
87.0
87.7
90.0
97.3
102.0
107.6
110.9
122.0
126.4
128.2

INTERNATIONAL STATISTICS

INDUSTRIAL PRODUCTION AND CONSUMER PRICES—MAJOR
INDUSTRIAL COUNTRIES
[1967 = 100]
Consum r prices (\uiadjusted)

Indu stria! prod uction (seaLSonatly adju led)
Period

United
Stales

1978

1979
1980
1981
1982
1983
1984 ».
„...

1984: Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

1

Japan

146.1
152.5
147.0
151.0
138.6
147.6
163.3

157.8
167.6
165.1
165.9
149.5
157.6
171.1

201.1

162.1
162.8
164.3
165.9
166.0
165.0
164.4
164.8
164.8

168.0
169.4
170.5
176.9
175.0
172.1
173.0
175.7
T
176.5

255.4
261.5
262.8
264.0
266.0
262.8
270.7
271.8
270.3

165.1
' 165.4
' 165.9
T
165.5
165.3

1985: Jan
Feb
Mar
Apr
May"

Canada

Germany

France

215.3
225.2
227.5
228.4
236.5

' 175.5 271.8
* 174.8 271.6
266.7
173.8

155
163
161

154.1
161.5
162.0

160
158
159

159.1
154.5
155.7

157
162
159
166
166
160
163
161
157
155
161
162

158.3
160.4
144.0
164.8
162.5
163.3
165.9
166.5
166.0

United
Kingdom

United
States1

147.9

127.8

157.6
166.5
163.8
158.8
153.7
158.5

132.9
124.1
119.7
122.3
126.4
127.5

195.4
217.4
246.8
272.4
289.1
298.4
311.1

153.5
159.1
160.5
158.5
160.8
162.6
158.6
156.8
161.0

126.7
125.7
126.4
126.1
126.4
127.4
127.5
128.2
128.8
130.5
130.3
132.8

Italy

166.5
166.0
167.5
166.5

United
Kingdom

Japan

France

Germany

202.5
221.0
243.5
273.9
303.5
321.0
335.0

252.3
261.3

282.3
296.2
304.1
309.7
316.6

233.9
259.1
294.2
332.7
373.1
407.9
439.5

160.2
166.9
175.8
186.9
196.8
203.3
208.2

286.2
328.5
398.0
472.4
549.4
631.8
698.8

359.0
423.6
473.9
514.7
538.3
565.1

308.8
309.7
310.7
311.7
313.0
314.5
315.3
315.3
315.5

332.7
333.3
334.7
336.6
336.6
336.9
337.5
339.7
339.9

315.9
318.2
315.6
316.2
313.4
318.5
321.0
319.0
319.6

433.6
436.2
438.4
441.5
443.7
445.9
449.0
450.3
451.2

207.7
207.8
208.6
208.2
207.8
208.0
209.2
209.6
209.8

695.4
699.6
703.8
705.9
708.0
713.0
720.1
724.4
729.5

561.8
563.9
565.3
564.7
570.0
571.1
574.6
576.4
575.9

316.1
317.4
318.8
320.1
321.3

341.3
343.5
344.3
345.7
346.5

321.3
318.7
320.2
321.9

453.5
455.8
459.0
462.2

211.0
211.9
212.6
212.9

736.8
744.2
749.4
756.1
760.6

578.0
582.7
588.1
600.6
603.4

Canada

Italy

316.6

Source: National sources as reported by Department of Commerce, International Trade Administration, Office of Trade and Industry Information, Trade Statistics Division, in International Economic Indicators.

Beginning January 1978 data relate to all urban consumers.

U.S. MERCHANDISE EXPORTS AND IMPORTS
[Millions of dollars; monthly data seasonally adjusted]
Here landise expo rts 1
Period

Total
domestic
and
foreign
exports

Merc landise imports

Total'

Food,
beverages, and
tobacco

Crude
materials and
fuels

Mercbandise trade )alance

Get eral import >'

Domestic exports
Manufactured
goods

Total'

Food,
beverages, and
tobacco

Exports

Crude
materials and
fuels

Manufactured
goods

2,716

4,257

3,457
4,463
4,325
5,949
7,831

5,398
6,379
8,360
9,352
10,427

13,368
15,504
18,519
21,415

Total
(c.i.f.
value)

less
imports
(customs
value)

Exports
(f.a.s.)
less
imports
(f.a.s.)

Exports
(f.a.s.)
less
imports
(c.i.f.)

I .a.s. valu B

Monthly average:
1975'
1976'
1977*
1978*
1979*
1980

8,971
9,602
10,103
11,973
15,155
18,386

8,847
9,462
9,919
11,762
14,886
18,043

1,399
1,436
1,330
1,717
2,049
2,534

1,266
1,341
1,548
1,746
2,352
2,810

5,913
6,437
6,679
7,873
9,716
11,991

8,209
10,290
12,533
14,563
17,455
20,406

827
991
1,186
1,312
1,478
1,546

8,823
11,042

762

-688
2,430
-2,590
-2,300
-2,020

148
-1,440

-3,265
-3,530
-3,364
-3,030

Customs value

1981
1982
1983
1984
1984:

Apr
May
June
July
Ai4
Sept
Oct
Nov
Dec

1985: Jan
Feb
Mar
Apr

19,473
17,683
16,707
18,155

19,075
17,256
16,326
17,670

2,767
2,248
2,248
2,276

2,752
2,793
2,463
2,624

12,857
11,643
11,034
11,929

21,748
20,329
21,504
27,144

1,529
1,485
1,568
1,802

7,739
6,200
5,670
6,063

11,873
12,002
13,621
18,460

22,779
21,240
22,490
28,431

-2,275
2,647
-4,797
8,988

-3,306
-3,558
-5,783
-10,276

17,520
17,978
17,705
19,154
18,123
18,210
18,411
18,395
19,142

17,071
17,493
17,250
18,675
17,665
17,709
17,886
17,857
18,623

2,151
2,150
1,880
2,155
2,131
2,586
2,336
2,506
2,413

2,575
2,818
2,644
2,733
2,609
2,440
2,352
2,454
2,988

11,541
11,684
11,834
12,746
11,854
11,946
12,329
12,148
12,409

28,074
26,012
25,276
31,334
26,866
28,409
26,783
27,331
25,933

2,028
1,761
1,576
2,002
1,711
1,803
1,924
1,705
1,719

6,618
5,648
6,049
6,497
5,815
5,755
6,106
6,158
5,689

18,489
17,815
16,831
21,824
18,598
20,027
18,037
18,499
17,777

29,401 - 10,553
27,262 -8,034
26,461 -7,571
32,925 -12,180
28,213 -8,743
29,753 - 10,200
28,064 -8,372
28,617 -8,937
27,176 -6,791

-11,880
-9,284
-8,755
-13,771
-10,090
-11,543
-9,653
-10,222
-8,033

19,401
17,853
18,446
17,779

18,852
17,358
17,881
17,298

2,161
1,995
1,973
1,913

2,562
2,542
2,386
2,336

13,282
11,967
12,538
12,141

28,297
27,985
28,129
28,295

1,932
1,817
2,128
1,804

5,373
4,988
4,372
5,764

19,879
20,347
20,716
19,812

29,687
8,896
29,299 -10,131
29,492
9,683
29,629 -10,516

-10,285
-11,446
-11,046
-11,850

1
Department of Defense shipments of grant-aid military supplies and equipment under the Milltary Assistance Program are excluded from totals for all periods and from monthly detail beginning
January
1978.
2
Total includes commodities and transactions not classified according to kind.
3
Total arrivals of imported goods other than intransit shipments.
Nom—-Imports on c.Lf. basis beginning 1982 not strictly comparable with earlier periods.




Data beginning 1980 include trade of the U.S. Virgin Islands, except that for 1980 Virgin Islands exports are reflected in the figures for domestic and foreign exports combined and trade bal"Data for 1975-79 for domestic and foreign exports combined, total general imports, and trade
balance include trade of the Virgin Islands.
Source: Department of Commerce, Bureau of the Census.

35

U.S. INTERNATIONAL TRANSACTIONS
The current account deficit increased to $30.0 billion in the first quarter of 1985 from $25.5 billion in the fourth
quarter of 1984. The merchandise trade deficit rose to $29.4 billion from $24.6 billion in the fourth quarter of
1984. (Series revised.)
BILLIONS OF DOLLARS*

BILLIONS OF DOLLARS*

10

10

BALANCE ON GOODS
AND SERVICES

0
-5

-5

-10

-10

MERCHANDISE TRADE
BALANCE
\

-15

\\

-15

-20

-20

-25

-25

-30

-30

-35

-35

1 1 1

-40

1977

1
1978

1979

1

1980

I

1

1

1 1
1981

1 I
1982

1

1

-40

1

1983

1984

1985

* SEASONALLY ADJUSTED
SOURCE, DEPARTMENT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS

[Millions of dollars; quarterly data seasonally adjusted. Credits (+), debits (—)]
Merchandise '

!

In restment inconae>

Period

1976
1977

114,745
120,816
142,054
184,473
224,269
237,085
211,198
200,745
220,316

r

1978
1979 r
1980 T
1981 r
1982 r
1983 '
1984 r
1983: I rr

n r
mr
IV

1984: I rr

nr
mr
rv

1985: I'.

Net
balance

Receipts

Payments

-9,483
-124,228
-151,907
-31,091
-176,001 -33,947
-212,009 -27,536
-249,749 -25,480
-265,063 -27,978
-247,642 -36,444
-262,757 -62,012
-328,597 -108,281

29,286
32,179
42,245
64,132
72,506
86,411
84,768
78,023
87,609

-13,311
-14,217
-21,680
-32,960
-42,120
-52,329
-55,273
-52,621
-68,500

15,975
17,962
20,565
31,172
30,386
34,082
29,495
25,402
19,109

Imports

Exports

Nel

Net
military
transactions

559

1,528

621
-1,778
-2,237
-1,183
-318
-162
-1,765

703
-71

Net

travel and
transportation
receipts

Other
services,
net'

Balance
on goods
and

services '

-992
-4,721
-8,974

9,205 -4,998
4,711
5,272 -9,894 -4,617
6,013 -10,321 -5,106
5,735
4,659 -5,649
7,277
8,950 -7,077
8,121
13,186 -6,847
84 -8,135
8,345
-8,852
9,557 -31,937
9,791 -90,119 -11,413

j 454
2,260
2,462 -7,163
2,290 -9,091
2,544 - 14,228

-2,558
-3,565
-3,573
-2,935
-997

144

49,227
48,862
50,399
52,257

-58,848
-63,616
-67,629
-72,664

-9,621
-14,754
-17,230
-20,407

17,935
19,172
20,985
19,932

- 12,283
-12,856
- 13,588
-13,893

5,652
6,316
7,397
6,039

-126
-669

-448
-1,116
-1,422
-1,735

53,753
54,677
55,530
56,355

-79,322
-80,326
-88,037
-80,912

-25,569
-25,649
-32,507
-24,557

23,502
20,895
21,769
21,445

-15,268
-17,277
-18,513
-17,442

8,234
3,618
3,256
4,003

-346
-593
-250
-575

-1,753
-2,049
-2,575
-2,597

2,582
2,412
2,452
2,344

19,154

-16,528

2,626

-89

-2,386

2,464 -26,822

r

55,811

1
Excludes military grants.
2
Adjusted from Census data
3

r

- 85,248

T

- 29,437

for differences in timing and coverage.
Fees and royalties from U.S. direct investments abroad or from foreign direct investments in the
United States are excluded from investment income and included in other services, net.

36



Remittances,
pensions,
and other
unilateral
trans-1
fers

-16,852
-22,261
-29,624
-21,382

Note.—Data revised beginning 1978.
Source: Department of Commerce, Bureau of Economic Analysis.

Balance
on
current
account

4,207
-14,511
-15,427
-991
1,873
6,339
-8,051
-40,790
-101,532

-1,606 -3,060
-1,875 -9,038
-2,204 -11,295
-3,166 -17,394
-2,212
-2,232
-2,876
-4,095

-19,064
-24,493
-32,500
-25,477

-3,175 -29,997

U.S. INTERNATIONAL TRANSACTIONS—Continued
in the capital accounts, claims on foreigners reported by U.S. banks increased $0.3 billion in the first quarter of
1985 compared with an increase of $4.9 billion in the fourth quarter of 1984. Liabilities to foreigners and
international financial institutions reported by U.S. banks (excluding U.S. Treasury securities) increased $13.0
billion, compared to an increase of $4.5 billion in the fourth quarter of 1984. (Series revised.)
BILLIONS OF DOLLARS
60

BILLIONS OF DOLLARS*
60

CHANGE IN
FOREIGN ASSETS
IN THE U.S..NET

40

20

CHANGE IN
U.S. ASSETS
ABROAD, NET
-20

-20

-40

-40

-60

-60

1977

1985

'SEASONALLY ADJUSTED
SOURCE: DEPARTMENT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS

[Millions of dollars; quarterly data seasonally adjusted, except as noted]

Foreign assets in the 1 J.S., net
[increast /capital inflovr (+)] 2

U.S. assets abroad, net
[increase /capit il outflow (— )
Period

Total

Other U.S.
Government
assets

-4,660
3,746
-5,162
5,097
-6,131
5,006
-5,516

-787
16
529
-953

-1,135
-1,263
1,171
-1,436

24,205
119
9,172
-15,587

15,158
15,608
19,539
34,017

161
1,706
-2,666
6,916

15,319
13,902
22,205
27,101

14,029
-5,442
1,570
1,353

73
-2,867
3,524

34,261
33,876
33,066
33,747

-657
-566
799
-1,110

-2,059
1,353
-1,369
734

-2,260
-17,070
20,532
- 13,003

19,277
41,592
3,140
33,310

-2,786
-224
-686
7,119

22,063
41,816
3,825
26,191

4,763
1,889
10,997
7,013

-422
606
-3,170
4,200

34,975
34,547
34,306
34,934

-233

-795

-2,165

16,521

-11,402

27,923

16,669

-343

35,493

-26,127
-1,128
-9,814
17,976

-4,976
18,988
18,364
IV '.... - 14,846

IV ....
Ir

n rr
m ...

1985: Ip
1

-3,193

Consists of gold, special drawing rights (SDKs), convertible currencies, and the U.S. reserve
position
in the IMF.
2
Quarterly data are not seasonally adjusted.




Other
foreign
assets

reserve
assets, net 1
(unadjusted,
end of
period)

18,826
14,503
30,358
52,416
42,615
78,362
90,775
78,526
93,895

732
1,133
-8,155
-5,175
-4,965
-1,196
-3,131

n r
m r ...

Foreign
official
assets

Of which:
Seasonal
adjustment
discrepancy

17,693
36,816
33,678
-13,665
15,497
4,960
3,672
5,795
3,424

-4,214
3,693

1983: I r r

Total

Total (sum
of the items
with sign
reversed)

36,518
51,319
64,036
38,752
58,112
83,322
94,447
84,322
97,319

-2,558
375

1978
1979
1980
1981
1982
1983
1984

U.S.
private
assets

drawing
rights
(SDKs)

-44,498
-30,717
57,202
-59,453
72,802
-100,758
108,122
-48,843
11,800

-51,269
-34,785
-61,130
-64,331
-86,118
-111,031
-119,218
-55,045
-20,447

1976
1977

1984:

U.S.
official
reserve
assets * 2

Statistical discrepancy

Allocations

18,747
19,312
18,650
18,956
26,756
30,074
33,958
33,747
34,934

10,544
-2,023
12,521

1,139
1,152
1,093

25,431
24,982
20,276
32,821
11,513
24,660
-733

Note.—Data revised beginning 1978.
Sources: Department of Commerce {Bureau of Economic Analysis) and Department of the
Treasury.

37

Contents
TOTAL OUTPUT, INCOME, AND SPENDING

Page

Gross National Product
Gross National Product in 1972 Dollars
Implicit Price Deflators for Gross National Product
Changes in GNP, Personal Consumption Expenditures, and Related Price Measures
Nonfinancial Corporate Business—Output, Costs, and Profits
National Income
Personal Consumption Expenditures
Sources of Personal Income
Disposition of Personal Income
Farm Income
Corporate Profits
Gross Private Domestic Investment
Expenditures for New Plant and Equipment

1
2
2
3
3
4
4
5
6
7
8
9
10

EMPLOYMENT, UNEMPLOYMENT, AND WAGES
Status of the Labor Force
Selected Unemployment Rates
Selected Measures of Unemployment and Unemployment Insurance Programs
Nonagricultural Employment
Average Weekly Hours and Hourly Earnings—Private Nonagricultural Industries
Average Weekly Earnings—Private Nonagricultural Industries
Productivity and Related Data, Business Sector

11
12
13
14
15
15
16

PRODUCTION AND BUSINESS ACTIVITY
Industrial Production and Capacity Utilization
Industrial Production—Major Market Groups and Selected Manufactures
New Construction
New Private Housing and Vacancy Rates
Business Sales and Inventories—Manufacturing and Trade
Manufacturers' Shipments, Inventories, and Orders

17
18
19
19
20
21

PRICES
Producer Prices
Consumer Prices
Changes in Producer Prices for Finished Goods
Changes in Consumer Prices
Prices Received and Paid by Farmers

22
23
24
24
25

MONEY, CREDIT, AND SECURITY MARKETS
Money Stock, Liquid Assets, and Debt Measures
Components of Money Stock and Liquid Assets
Consumer Installment Credit
Bank Loans and Securities, and Reserves
Sources and Uses of Funds, Nonfarm Nonfmancial Corporate Business
Current Assets and Liabilities of Nonfmancial Corporations
Interest Rates and Bond Yields
Common Stock Prices and Yields

26
27
27
28
29
29
30
31

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

32
33
34

INTERNATIONAL STATISTICS
Industrial Production and Consumer Prices—Major Industrial Countries
U.S. Merchandise Exports and Imports
U.S. International Transactions

35
35
36

General Notes
Detail in these tables may not add to totals because of rounding.
Unless otherwise noted, all dollar figures are in current dollars.
Symbols used:
* Preliminary.
r
Revised.
' Corrected.
... Not available (also, not applicable).
For sale by the Superintendent of Documents, U.S. Government Printing Office,
Washington, D.C. 20402. Price $2.50 (single copy) ($3.13 foreign).
Subscription price: $27.00 per year; $33.75 for foreign mailing.

38



U.S. GOVERNMENT PRINTING OFFICE

:

1985

0—49-040