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Economic Indicators
October

1971

Prepared for the Joint Economic Committee by the




Council of Economic Advisers

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1971

JOINT ECONOMIC COMMITTEE
(Created pursuant to Sec. 5(a) of Public Law 304, 79th Cong.)
WILLIAM PROXMIRE, Wisconsin, Chairman
WRIGHT PATMAN, Texas, Vice Chairman
SENATE
JOHN SPARKMAN (Alabama)
J. W. FULBRIGHT (Arkansas)
ABRAHAM RIBICOFF (Connecticut)
HUBERT H. HUMPHREY (Minnesota)
LLOYD M. BENTSEN, Jr (Texas)
JACOB K. JAVITS (New York)
JACK MILLER (Iowa)
CHARLES H. PERCY (Illinois)
JAMES B. PEARSON (Kansas)

HOUSE OF REPRESENTATIVES
RICHARD BOLLING (Missouri)
HALE BOGGS (Louisiana)
HENRY S. REUSS (Wisconsin)
MARTHA W. GRIFFITHS (Michigan)
WILLIAM S. MOORHEAD (Pennsylvania)
WILLIAM B. WIDNALL (New Jersey)
BARBER B. CONABLE, Jr. (New York)
CLARENCE J. BROWN (Ohio)
BEN B. BLACKBURN (Georgia)

JOHN R . STARK, Executive Director
JAMES W. KNOWLES, Director of Research
LOUGHLIN F. McHuGH, Senior Economist

COUNCIL OF ECONOMIC ADVISERS
PAUL W. McCRACKEN, Chairman
EZRA SOLOMON
HERBERT STEIN
Economic Indicators prepared under supervision of FRANCES M. JAMES

[PUBLIC LAW 120—81sT CONGRESS; CHAPTER 237—IST SESSION]
JOINT RESOLUTION [SJ. Res. 55]
To print the monthly publication entitled ''Economic Indicators"
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the Joint
Economic Committee be authorized to issue a monthly publication entitled "Economic Indicators," and that a
sufficient quantity be printed to furnish one copy to each Member of Congress; the Secretary and the Sergeant at
Arms of the Senate; the Clerk, Sergeant at Arms, and Doorkeeper of the House of Representatives; two copies to
the libraries of the Senate and House, and the Congressional Library; seven hundred copies to the Joint Economic
Committee; and the required number of copies to the Superintendent of Documents for distribution to depository
libraries; and that the Superintendent of Documents be authorized to have copies printed for sale to the public.
Approved June 23, 1949.
Charts drawn by Art Production Branch^ Office of the Secretary-, Department of Commerce.
Economic Indicators, published monthly, is available at 25 cents a single copy
or by subscription at $3.00 per year (foreign, $4.00) from:
SUPERINTENDENT OF DOCUMENTS
GOVERNMENT PRINTING OFFICE
WASHINGTON, D.C. 20402
Subscribers who wish to receive it at an earlier date after release may take advantage of provisions for airmail subscriptions. The domestic airmail subscription
price is $3.60 additional per year.
The 1967 edition of the Historical and Descriptive Supplement to Economic
Indicators, which describes each series and gives annual data for years not
shown in the monthly issues, is available at 70 cents a copy from the Superintendent of Documents, Government Printing Office.

11




TOTAL OUTPUT, INCOME, AND SPENDING
THE NATION'S INCOME, EXPENDITURE, AND SAVING
Preliminary estimates for the third quarter indicate that gross national product rose $16 billion (seasonally adjusted
annual rate). The increase in the second quarter was $22 billion and in the first quarter $32 billion.
[Billions of dollars; quarterly data at seasonally adjusted annual rates]
(jrovernnie at

Persons
Disposab le personsti income
Period
Total l

N et receipts

E xpenditur es

! Surplus
Peri
or
Less : Equals: Personal sonal
Less:
Less:
PI _ i
Tax
Interest Total consump- saving
iLquais.. Ii deficit
/ }\
Trans- Equals : Total
Transand
tion
or
paid and excludPur- 1 . ( ~~~ >
fers,
fers,
nontax interest; Net
expendtransfer
ing
expend- interest, chases ! in™
disaI 1
interest itures saving receipts
receipts itures
of goods
V t
payand
and
and
product
and
or
ments
SUDsub- 2 services ! accounts
to foraccruals sidies 2
transr
sidies
lers
eigners
CMlH

1963
1964
1965
1966
1967
1968
1969
1970

404. 6
438. 1
473. 2
511. 9
546. 3
591. 0
634. 2
687. 8

9.7
10. 7
12. 0
13. 0
13. 9
15. 1
16. 7
17. 9

394. 9
427.4
461. 3
498. 9
532. 4
575. 9
617. 5
669. 9

375.0
401. 2
432. 8
466. 3
492. 1
536. 2
579. 6
615. 8

19. 9
26. 2
28. 4
32. 5
40. 4
39. 8
37. 9
54. 1

168. 8
174. 1
189. 1
213. 3
228. 9
263. 5
295. 6
300. 5

44. 4
46. 7
49. 9
55. 5
62. 8
70.7
78. 4
94. 2

124.3
127. 3
139.2
157. 9
166. 2
192. 7
217. 2
206. 3

166. 9
175.4
186. 9
212. 3
242. 9
270. 3
288. 2
313. 6

44. 4
46. 7
49. 9
55. 5
62. 8
70. 7
78.4
94. 2

1970: I
II
III
IV.". _
1971: I
II
III *_

667. 6
685. 7
696. 2
701. 5
721. 6
740. 8
749, 2

17.5
17. 8
18. 0
18. 3
18. 6
18. 9
19. 0

650. 1
667. 9
678. 2
683. 2
703. 0
721. 9
730.2

604. 0
613. 8
620. 9
624. 7
644. 6
660. 9
672. 1

46. 2
54. 2
57. 4
58. 5
58.4
60. 9
58. 0

296. 6
301. 8
301. 7
301. 9
312. 0
318. 0

82. 7
97. 5
96. 8
99. 8
102. 0
108. 8
110. 3

213. 9
204. 3
204. 9
202. 1
210. 0
209. 2

300. 0
314. 0
316. 9
323. 7
330. 0
339. 1
344. 7

82. 7
97. 5
96. 8
99. 8
102. 0
108. 8
110. 3

Business

1970: I
II
III
IV
1971: I
II
III"
1

217.3
—3.4
216.5
—12.2
220. 1
- 15. 2
223.7
-21.7
228. 2
- 17. 9
230. 2
— 21. 0
234.4 _ _ _

i
i

Iiiternation al

_

68. 8
76. 2
84. 7
91. 3
93. 0
95. 4
95. 6
99. 3

87. 1
94. 0
108. 1
121. 4
116. 6
126. 0
137. S
135. 3

— 18. 4
-17.8
-23. 4
-30. 1
-23. 5
-30. 6
-42. 1
-36. 0

2. 8
2. 8
2. 8
2. 8
3. 0
2. 9
2. 9
3. 1

32. 3
37. 1
39. 2
43. 4
46. 2
50. 6
55. 6
62. 9

26. 4
28. 6
32. 3
38. 1
41. 0
48. 1
53. 6
59. 3

5. 9
8. 5
6. 9
5. 3
5. 2
2. 5
2. 0
3. 6

96. 2
99. 1
100. 4
101. 5
109. 3
112. 8

131. 2
134. 1
138. 6
137. 3
143. 8
152. 4
152. 9

-35. 0
-35. 0
- 38. 2
- 35. 8
- 34. 5
- 39. 6

3. 0
3. 0
3. 2

61. 5
63. 2
63. 7
63. 2
66. 1
66. 4
68. 5

58. 0
59. 0
59. 7
60. 5
61. 9
66. 9
69. 0

3. 5
4. 2
4. 0
2. 7
4. 2
—.5

•). O

;;. i

3. 2
o. o

Personal income (p. r>) less personal tax and nontax payments (fines, penalties, etc.).
2
Government transfer payments to persons, foreign net transfers by Government, net interest paid by government, subsidies less current surplus of government enterprises, and disbursements less \vajie accruals.
3
Undistributed corporate profits, corporate inventory v a l u a t i o n a d j u s t m e n t ,
capital consumption allowances, and private wape accruals less disbursements.
Does not include retained earnings of unincorporated business, w h i c h arc included in disposable personal income.




1. 8
- 1. 4
2. 2
1.1
-13.9
— 6. 8
7. 4
-13.1

G ross
Net
Net e xports of goods
Total Statis- 1 national
transfers
and service s
n
Excess of income
tical
product
to forGross
or
transfers
discrep- |
or
private Excess eigners
of
retained domestic
or
receipts
ancy
expendby
earnof net
! iture
invest- invest- sonsperment
and Exports
Less : Equals: exports
ings 3
ment 4
Net
GovernImports exports
I
ment

Period

1963
1964
1965
1966
1967
1968_
1969
1970

122. 5
128. 7
137. 0
156. 8
180.1
199. 6
209. 7
219.4

1

r

"

-3. 1
-5. 7
— 4. 1
— 2.4
-2. 2
.4
9 !
—.4 j

590. 8
633. 7
688. 0
750. 9
794. 6
866. 9
933. 2
978. 6

-0.3
-1. 3
-3, 1
-1. 0 !
-.7 i 1
-2. 7
A

1

-4. 5

590. 5
632.4
684. 9
749. 9
793. 9
864. 2
929. 1
974. 1

963. 2
-7. 3
956. 0
974. 3
— 5. 8 !
968. 5
986. 7
- :•!. 2
983. 5
.7
990. 1
— 1. ()
988. 4
— 1. 1 1, 025. 4 • -4. 9
i, 020. 8
3. 7 j 1, 047. I
- 4. 0 i , 043. 1
:«. s '
1, 059. 0
-. 5
-1. 1

Private business investment, purchases
i n s t i t u t i o n s , and residential housing.
* Net forei^i investment less cnpi
changed.

GROSS NATIONAL PRODUCT OR EXPENDITURE
Gross national product (seasonally adjusted) increased at an annual rate of 6.3 percent in the third quarter,
according to preliminary estimates. When adjusted for price changes, the rise was almost 3 percent.
BILLIONS OF DOLLARS
1,100

BILLIONS OF DOLLARS
1.100
SEASONALLY ADJUSTED ANNUAL RATES

1,000

1,000

900

900

800

800

700

700

PERSONAL CONSUMPTION
EXPENDITURES

600

!

600

V

500

500

. GOVERNMENT PURCHASES _
OF GOODS AND SERVICES

400

400

200

200

100

100

NET EXPORTS OF GOODS
AND SERVICES

1965

1966

GROSS PRIVATE DOMESTIC
INVESTMENT

1969

1967

1970

J/PREL1MINARY.
SOURCE: DEPARTMENT OF COMMERCE

Gove rnment f >urchases of good s
Total
Personal Gross
Net
services
conTotal
gross
private exports
sump- domestic of goods
gross
national
Federal
tion
product national
Total
investand
in 1958 product expend- ment services
Total National Other
defense1
prices
itures
Billions of dollars; quarterlyr data at £seasonall.y ad juste d annual rates

Period

1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1970: I
11
III

COUNCIL OF ECONOMIC ADVISERS

487.7

..

IV

1971: I_
II
III'

497. 2

629.8

661.0
581. 0
617. 8
668. 1
676. 2
706.6
724.7

720. 0
719. 8
721. 1

723.3

716.9
729. 7
738.4
743.6

503.7
520. 1
560.3
590. 5
632.4
684. 9
749. 9
793. 9
864. 2
929. 1
974. 1
956. 0
968. 5
983. 5
988. 4
I, 020. 8
1, 043. 1
1, 059. 0

325. 2
335.2
355. 1
375.0
401. 2
432. 8
466. 3
492. 1
536. 2
579. 6
615. 8
604. 0
613. 8
620. 9
624. 7
644. 6
660. 9
672. 1

74. 8
71. 7
83. 0
87. 1
94. 0
108. 1
121. 4
116. 6
126. 0
137.8
135. 3
131. 2
134. 1
138. 6
137. 3
143. 8
152. 4
152. 9

'This category corresponds closely with budget outlays for national defense,
shown on p. 36.
2
Gross national product in current prices divided by gross national product
in 1958 prices.




4.0
5. 6
5. 1
5.9
8. 5
6.9
5.3
5.2
2. 5
2. 0
3. 6
3. 5
4. 2
4. 0
2. 7
4. 2
—.5
-. 5

99. 6
107. 6
117. 1
122. 5
128.7
137. 0
156. 8
180. 1
199. 6
209. 7
219. 4
217. 3
216. 5
220. 1
223. 7
228. 2
230. 2
234. 4

53. 5
57.4
63.4
64. 2
65. 2
66. 9
77. 8
90. 7
98. 8
99. 2
97. 2
100. 2
96. 8
96. 1
95. 9
96. 7
95. 7
97. 6

44. 9
47.8
51. 6
50.8
50.0
50. 1
60. 7
72. 4
78. 3
78. 4
75. 4
78. 9
75. 1
74. 2
73. 2
73. 0
71. 8
71.4

Source: Department of Commerce.

8. 6
9.6
11.8
13. 5
15. 2
16. 8
17. 1
18. 4
20. 5
20. 7
21. 9
21. 3
21. 6
21. 9
22. 7
23. 7
23. 9
26. 2

and

State
and
local

46. 1
50.2
53. 7
58. 2
63. 5
70. 1
79.0
89. 4
100. 8
110. 6
122. 2
117. 1
119. 7
124. 0
127. 9
131.5
134.5
136.8

Implicit
price
deflator
for total
GNP,
1958= 1002
103.
104.
105.
107.
108.
110.
113.
117.
122.
128.
135.
132.
134.
135.
138.
139.
141.
142.

29
62
78
17
85
86
95
59
30
21
29
82
32
97
07
88
27
41

NATIONAL INCOME
Compensation of employees rose $8 billion (seasonally adjusted annual rate) in the third quarter, somewhat less
than the averase quarterly rise over the preceding year.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

900

900

500

500

400

400
CORPORATE PROFITS AND
INVENTORY VALUATION ADJUSTMENT

100

100'

1965
J/^RELIMINARY.
SOURCE; DEPARTMENT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars; quarterly data at seasonally adjusted annual rates]
Proprieto]rs' income

Rental
income
of
per-

Corporalbe profits and inventory va luation ac Ijustment

Total
national
income

Compensation
of em- l
ployees

1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970

414. 5
427. 3
457. 7
481. 9
518. 1
564. 3
620. 6
653. 6
711. 1
763. 7
795. 9

294. 2
302. 6
323. 6
341. 0
365.7
393. 8
435. 5
467. 2
514. 6
565. 5
601. 9

12. 0
12. 8
13. 0
13. 1
12.1
14.8
16. 1
14. 8
14. 7
16. 8
15. 8

34. 2
35. 6
37. 1
37. 9
40.2
42.4
45. 2
47. 3
49. 5
50. 3
51. 0

15. 8
16. 0
16. 7
17. 1
18.0
19.0
20. 0
21. 1
21. 2
22. 6
23. 3

10. 0
11. 6
13. 8
15.8
18.2
21. 4
24. 4
26. 9
29. 9
33. 0

49. 9
50. 3
55.7
58. 9
66.3
76. 1
82. 4
78.7
84. 3
78. 6
70. 8

49. 7
50.3
55. 4
59. 4
66.8
77.8
84. 2
79.8
87. 6
84. 2
75.4

-1.7
-1. 8
-1. 1
-3. 3
-5.5
-4. 5

1970: I
II
III
IV

785. 8
793. 4
802. 2
802. 1

593. 2
598. 5
606. 5
609. 3

17. 8
16. 6
14. 5
14. 4

50. 2
51. 0
51. 4
51. 5

23. 0
23. 2
23. 4
23. 7

31. 8
32. 6
33. 4
34. 2

69. 8
71. 5
73. 0
69. 0

75. 6
75. 8
78. 5
71.6

-5. 8
-4. 2
-5.5
-2. 6

1971: I
II
III *

828. 3
844. 5

627. 9
639. 5
647. 5

14. 8
15. 2
17. 0

51. 2
51. 5
51. 8

23. 8
24. 2
24.5

35. 0
35. 8
36.4

75.5
78. 3

79. 1
83.3

-3.5
-5. 1
-6.5

Period

1
Includes
s

Farm 2

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




Business
and professional

Net

interest
8.4

Source: Department of Commerce.

Total

Profits Inventory
before valuation
taxes adjustment
0. 2
-. 1
.3
-. 5
-.5

SOURCES OF PERSONAL INCOME
Personal income rose $3.2 billion (seasonally adjusted annual rate) in September with most of the rise attributable
to farm proprietors' income and transfer payments.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

900

900

800

800

700

700

600

600

500

500

400

400

300

300
OTHER INCOME

200

200

.TRANSFER PAYMENTS_

100

\
1965

1966

1967

100

L
1969

1968

SOURCE: DEPARTMENT OF COMMERCE

Period

1962
1963
1964
1965
1966
1967
196R
1969
1970
1970: Aug
Sept
Oct____
Nov___
Dec
1971: Jan
Feb
Mar. _ _
Apr
May___
June
Julv___
Aug.. _
Sept "__

1971

1970

COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars; monthly data at seasonally adjusted annual rates]
Wage
;
Total
and
Other Propriet ors income Rental
Divi- Persona] Transfer
labor 2
personal salary
Business income
paydends interest ments
of
income disburse- income
Farm
and pro- persons
income
l
ments
fessional
442.6
465. 5
497. 5
538.9
587. 2
629. 3
688. 9
750. 3
803. 6
809. 0
814. 9
813. 6
815. 7
820. 9
830.0
833. 2
839. 7
844. 4
850.0
870. 1
859. 2
867. 6
870. 8

296. 1
311. 1
333. 7
358. 9
394. 5
423. 1
464. 9
509. 6
541. 4
545. 1
548. 7
544. 2
545. 9
551. 5
559. 2
561. 5
566. 1
569. 0
573. 3
574. 8
574. 7
580. 9
580. 9

13.9
14. 9
16. 6
18.7
20. 7
22. 3
25.4
28. 2
30. 8
31. 2
31. 4
31. 7
32. 0
32. 2
32. 4
32. 6
32. 8
33. 1
33. 4
33. 7
33. 9
34. 1
34. 3

13.0
13. 1
12. 1
14.8
16. 1
14. 8
14. 7
16. 8
15.8
14. 6
13. 9
14. 2
14. 5
14. 6
14. 7
14. 8
14. 9
15. 1
15. 2
15. 3
16. 1
17.0
17.9

37. 1
37. 9
40. 2
42. 4
45. 2
47. 3
49. 5
50. 3
51. 0
51.4
51. 4
51. 5
51. 4
51. 5
51. 2
51. 1
51.3
51.4
51. 5
51. 6
51. 7
51. 8
51. 9

1
Compensation ot employees isee p. 3) excluding employer contributions ior
social insurance and wage accruals less disbursements.
2
Employer contributions to private pension, health, and welfare funds: compensation for injuries- directors' fees; military reserve pay; and a few other minor
items.




16.7
17. 1
18. 0
19.0
20. 0
21. 1
21. 2
22. 6
23. 3
23.4
23. 5
23. 5
23. 7
23. 8
23. 9
23. 5
24. 0
24. 1
24. 2
24. 3
24. 4
24. 5
24. 5

15.2
16. 5
17. 8
19.8
20. 8
21. 4
23. 6
24. 4
25. 0
25. 2
25.4
25. 4
25. 5
23. 9
25. 6
25.7
25. 5
25. 5
25. 6
25. 2
25. 6
25. 7
25. 7

27.7
31. 4
34. 9
38.7
43. 6
48. 0
52. 9
58. 8
64. 7

33.3
35. 3
36. 7
39.9
44. 1
51. 8
59. 6
65. 9
79. 6

65. 6
66. 3
66. 5
66. 7
66. 8
66.9
67. 0
67. 0
67. 3
67. 5
67.5
68. 1
68. 7
69. 2

80.8
82. 9
84.7
84. 5
85. 1
86. 8
87. 8
89. 1
89. 8
90. 5
109. 0
96. 2
96. 5
98. 0

Less: Personal con- N onagritributions cultural
for social personal
3
insurance income

10.3
11. 8
12. 5
13.4
17. 7
20. 5
22. 8
26. 3
28.0
28. 3
28. 5
28. 2
28. 3
28. 6
30. 7
30. 8
31. 1
31. 1
31. 3
31. 4
31. 5
31. 7
31.7 i
1

425.5
448. 1
480. 9
519.5
566. 3
609. 4
668. 8
727. 7
781. 4

788. 1
794.2
792. 5
795. 0
800. 5
808. 7
811. 6
818. 0
822. 5
827. 9
848. 0
836. 4
843. 9
846. 1

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

USPOSITION OF PERSONAL INCOME
I he rise in disposable income (seasonally adjusted) slowed down in the third quarter after unusually large increases
in the two preceding quarters.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

700

700

600

500

400

400

DOLLARS
4000

DOLLARS
4,000
SEASONALLY ADJUSTED ANNUAL RATES

PER CAPITA DISPOSABLE PERSONAL INCOME
3,500

3,500
IN CURRENT PRICES

3,000

3,000

2,500

2,500

2,000

2,000
1965

1971

J/PRELIMiNARY
SOURCE: DEPARTMENT OF COMMERCE

Less *
PerPersonal
sonal tax and
income nontax
payments

Period

COUNCIL OF ECONOMIC ADVISERS

Per cap>ita disLess: Persemal outla ys
posable personal
Equals:
Persoilal consulnption
Equals:
inc<3me
Disex penditure s 2
Personal
Total
posable
saving Current
personal personal Durable Non1958
durable Services
income outlays '
prices
prices
goods

Billions of dollars

i

1962
1963
1964
1965
1966
1967
1968 ___
1969
1970

442.6
465. 5
497. 5
538.9
587. 2
629. 3
688. 9
750. 3
803. 6

57.4
60. 9
59. 4
65.7
75.4
83. 0
97. 9
116. 2
115. 9

385. 3
404. 6
438. 1
473. 2
511. 9
546. 3
591. 0
634. 2
687. 8

363.7
384. 7
411. 9
444.8
479. 3
506. 0
551. 2
596. 3
633. 7

49.5
53. 9
59. 2
66. 3
70.8
73. 1
84. 0
89. 9
88. 6

Saving
as percent of
disposable
personal

Population
(thousands) 3

(percent)

Dol lars

162.6
168. 6
178. 7
191. 1
206. 9
215. 0
230. 8
247. 6
264. 7

143.0
152. 4
163. 3
175.5
188. 6
204. 0
221. 3
242. 1
262. 5

21.6
19. 9
26. 2
28.4
32. 5
40. 4
39. 8
37. 9
54. 1

2,066
2, 139
2,284
2,436
2, 605
2,751
2,946
3, 130
3,358

1,969
2,016
2, 126
2, 239
2,336
2,404
2,487
2, 535
2,595

5.6
4. 9
6.0
6.0
6. 4
7. 4
6. 7
6. 0
7. 9

186,
189,
191,
194,
196,
198,
200,
202,
204,

504
197
833
237
485
629
619
599
800

012
526
107
728

Seasc natty adjiisted annu al rates

1970: I...
II__|
III.
IV..

784.
803.
809.
816.

3
8
8
7

116.7
118. 0
113. 5
115. 2

667.
685.
696.
701.

1971: I... 834. 3
II_. 854. 8

112. 7
114. 0
116. 7

721. 6
740. 8
749. 2

IH

1

865. 9

6
7
2
5

5
5
9
0

88. 6
90. 7
90. 4
84. 9

259. 4
262.9
265. 5
270. 9

256.
260.
265.
268.

1
2
0
9

46. 2
54. 2
57. 4
58. 5

3, 272
3,353
3,395
3,410

2,570
2,606
2,613
2,588

6.9
7. 9
8. 2
8. 3

204,
204,
205,
205,

663. 2
679. 9
691. 2

97. 6
100. 8
104. 7

272. 0
279. 8
281. 7

275. 0
280. 4
285. 7

58. 4
60. 9
58. 0

3,498
3,583
3, 614

2,631
2, 669
2, 671

8. 1
8.2
7. 7

206, 259
206, 759
207, 276

621.
631.
638.
643.

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




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

FARM INCOME
Net farm income excluding inventory change (seasonally adjusted) increased 10 percent in the third quarter. Including
inventory change, the increase was about 11% percent.

PM

5SJ fSS^fflg ^

Income received fro m fanning
Realized gross

,, . ,
Period

From
all
sources

r

From
farm
sources

From
nonfarm
sources

^
lotai

1962
1963
1964
1965
1966
1967
1968
1969
1970
1970: I
II
III
IV

2074liO
20.6
12.1
20.6
11.3
23.6
13.5
24.9
14.4
24.0
13.1
25.1
13.2
27.7
14.9
27. 5
14. 2
_____
f
.
"
!

penses

56.8
57.6
59.3

49.7
50.6
52.3

42.2
42.8
43.0

Net income per
farm includil

ct

inventory chaSge»
'
—

inciudExc i ud _
ing net in-ing net in- Current 1967
ventory ventorv
prices prices 4
change change"2

Billions of dollars
41.3
3671
28.6
12.6
42.3
37.4
29.7
12.6
42.6
37.2
29.5
13.1
44.9
39.3
30.9
14.0
49.7
43.3
33.4
16.3
49.0
42.7
34.8
14.2
50.9
44.1
36.2
14.7
55.5
48.1
38.7
16.8
56. 6
49. 2
40. 9
15. 7
Seasonally adjusted annual rates
J7
577~9
50. 5
4072
TO
57.1
49.7
40.7
16.4
55.7
48.4
41.2
14.5
55.6
48.3
41.4
14.2

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




Produc-

tion ex _

872
8.5
9.3
10.0
10.5
10.9
11.9
12.8
13. 3

1971:1
II
III

6

Cash
receipts
trom
market-

XT + + *<**
JNet to tarm
operators

14.6
14.8
16.3

13.2
13.2
12.3
15.0
16.3
14.9
14.8
16.9
15. 9

Dollars
3, 586
3, 941
3,708
4,030
3,564
3,832
4,487
4,723
5,019
5,121
4,730
4,730
4,854
4,667
5,685
5,216
5, 451
4, 782

17. 9
16.6
14.6
14.5

6, 120 |
5,680
4,990
4,960

5^60
5,030
4,380
4,310

14.9
15.3
17.1

5,180
5,320
5,950

4,430
4,510
4,960

* Income in current prices divided by the index of prices paid by farmers for
family living items on a 1967 base.
„.
.
. . . . ,,
0
Source: Department of Agriculture.

CORPORATE PROFITS
In the second quarter, corporate profits (before taxes and including inventory valuation adjustment)rose $2.8 billion
(seasonally adjusted annual rate).
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

40

40

20

20

1971
SOURCE:

COUNCIL OF ECONOMIC ADVISERS

DEPARTMENT OF COMMERCE

[Billions of dollars; quarterly data at seasonally adjusted annual rates]
Cori3orate pi'ofits
(befc)re taxes) and inveiitory
a fter taxcJS
Corpo- Profits
valuation adjustme nt
rate
plus
TransCorpo- CorpoM anufactm ing
capital capital
portation,
rate
rate
conconDiviUncomtax
profits
NonDurable durable munidend distrib- sump- sumpAll 1 before liabil- Total
tion
tion
goods
payuted
taxes
ity
Total
goods cations, other
indusments profits allow-2 allow-3
and
ances ances
tries
public
tries
utilities
I
26. 6
12. 5
14. 1
31.2
20. 5 I 55.4
24. 2
15. 2
16. 0
30. 1
8. 5
61. 3
15. 8
13. 0
28. 3
20. 6
33. 1
16.5
59. 4
26. 3
9. 5
16.6
31.8
64. 8
17.8
32.7
14.9
38.4
23.5
28.3
17. 8
20.6
33. 9
66.8
72.3
10. 1
22. 8
39.3
46. 5
16. 6
25. 6
19. 8
31. 3
26. 7
77. 8
36. 4
82.9
11. 1
42. 6
24. 0
18. 6
49. 9
34. 3
20. 8
29. 1
27. 9
84. 2
39. 5
89. 5
11.9
18.0
38. 7
20. 7
46. 6
33. 2
21. 4
25. 3
29. 1
79. 8
43. 0
10. 8
89. 6
22. 4
41. 7
19. 3
39. 9
47. 8
24. 2
32. 0
23. 6
87. 6
46. 8
94. 6
10. 6
36. 0
18. 4
17. 5
44. 5
32. 7
84. 2
39. 7
24. 4
20. 0
51. 3
95. 8
10. 0
29. 5
13. 0
16. 6
41. 2
34. 1
33. 3
25. 0
16. 2
75. 4
56.2
97. 4
8. 0

Con3orate pr ofits
Period

All
industries

1962
1963
1964 _ ...
1965
1966__-___
1967
1968
1969
1970

55.7
58. 9
66.3
76. 1
82. 4
78. 7
84. 3
78. 6
70. 8

1970: I
II—
III>_
IV___

69. 8
71. 5
73.0
69.0

31. 1
31. 5
30. 6
25. 0

14. 3
14. 9
13. 8
8. 8

16. 7
16. 5
16. 8
16. 2

8. 2
7. 8
7. 9
8. 1

30. 5
32. 2
34. 4
35. 9

75. 6
75. 8
78. 5
71. 6

34. 1
34. 5
35. 6
32. 3

41. 5
41. 3
42. 9
39. 2

25. 0
24. 9
25. 2
25. 0

16. 6
16. 4
17. 7
14. 3

54. 4
55. 7
56. 7
58. 0

95. 9
97. 0
99. 6
97. 2

1971: I
!!__„
Ill"

75. 5
78.3

32. 4
33. 3

16. 0
16.1

16.4
17. 3

7, 3
7.7

35. 7
37. 2

79. 1
83. 3

36. 2
37.4

42. 9
46.0

25. 6
25.4
25.7

17.3
20. 5

62.6
64 0

105. 5
110.0

1
Includes
5

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

68-438°—71-




Source: Department of Commerce.

GROSS PRIVATE DOMESTIC INVESTMENT
Gross private domestic investment rose $% billion (seasonally adjusted annual rate) in the third quarter. Increases
in nonresidential fixed investment and housing were almost offset by a decline in inventory investment.
BILLI ONS OF DOLLARS
160

BILLIONS OF DOLl ARS
160
SEASCtt4ALLY ADJUSTED ANNUAL RATES

140

(3ROSS PRIVATE DOAvAESTIC
INVESTMENT

— x\

ion

^

>—
/^
^~

^^^^*^^
****^
>

140

•***

^ ^
120

^^\

^-^

1AA

1AA

80

80

PRODUCERS
DURABLE EQUIPA*\ENT

\

zn

^""•^*"

40

•»•»*""***
RESIDENTIA . STRUCTURES

i^~\

- NONRESIDENTIAL STRUCTURES

•^ysKsssa****"

'

-jgjO***^

""*""*••«•..„...

20

's
\

\

!

!

I

1965

!

1

1

!

!

1967

1966

40

•••nmmM..niM||%«%«»'**%

CHA NGE IN BUSINESS
INVENTORIES

.. .« " " "
.„. « " "

20

1

\

iUGKiKirjr*****"**'*

1

I

I

!

1

!

1

!

SOURCE: DEPARTMENT OF COMMERCE

1 J/l
1971

1970

1969

1968

o
1

COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars; quarterly data at seasonally adjusted annual rates]
Fixed ini/estment

¥>

'

Total
gross
private
domestic
investment

1

Total

Struc tures
Total
Total

1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1970: I
II
III
IV
1971: I
II

__

m ........

74.8
71.7
83. 0
87. 1
94. 0
108. 1
121.4
116. 6
126. 0
137. 8
135.3
131. 2
134. 1
138. 6
137. 3
143. 8
152. 4
152.9

Source: Department of Commerce.

8



Resid ential
struc tures

N<president ial

71.3
69. 7
77.0
81. 3
88.2
98. 5
106. 6
108.4
118. 9
130. 4
132. 5
130. 8
132. 1
133. 5
133. 6
140. 6
146. 7
151. 4

48. 4
47.0
51. 7
54. 3
61. 1
71. 3
81.6
83.3
88.8
98.6
102. 1
100. 8
102. 1
104. 8
100. 8
104. 3
107. 0
109. 7

18. 1
18.4
19. 2
19. 5
21.2
25.5
28. 5

28. 0
30.3
34. 5
36.8
36. 1
36. 6
37. 3
37. 1
37. 9
38. 2
38. 9

Nonfarm
17.4
17.7
18. 5
18. 8
20.5
24. 9
27. 8
27. 3
29. 6
33. 7
35. 9
35. 3
35. 7
36. 5
36. 3
37. 1
37.4
38. 1

Produce rs; durable equ ipment
Total

30.3
28. 6
32.5
34.8
39.9
45. 8
53. 1
55.3
58.5
64. 1
65. 4
64. 7
65. 6
67. 5
63. 7
66. 3
68. 8
70.7

Nonfarm
27.7
25.8
29.4
31. 2
36.3
41. 6
48.4
50.0
53. 6
59. 2
60. 0
59.7
60. 6
61. 6
58. 1
60. 1
62. 3
63.7

Total

22.8
22.6
25. 3
27.0
27. 1
27. 2
25.0
25. 1
30. 1
31. 8
30.4
30. 0
29. 9
28. 7
32. 8
36.4
39. 7
41.7

Nonfarm
22. 2
22.0
24. 8
26. 4
26.6
26. 7
24.5
24. 5
29. 5
31. 2
29. 7
29. 4
29.3
28. 1
32. 2
35.7
39. 1
41. 1

Change in business mv entories

Total

3.6

2. 0
6. 0
5. 9
5. 8
9. 6
14.8
8. 2
7. 1
7. 4
2.8

.4
2. 1
5. 1

3.7
3.2

5. 7

1.6

Nonfarm
3.3

1. 7

5.3

5. 1
6.4
8.6

15.0

7.5
6.9
7.3
2.5

.1
1. 8
4. 7
3. 3
3. 0
5. 2
.8

FOR NEW PLANT AND EQUIPMENT
Businessmen have projecfed a slight rise in plant and equipment expenditures(seasona!Iy adjusted)in the third quarter
and no change in the fourth. For all of 1971, expenditures are expected to be 2 percent above 1970.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
100

100
SEASONALLY ADJUSTED ANNUAL RATES

80

80
TOTAL NEW PLANT AND EQUIPMENT

60

60

NONMANUFACTURING

40
,„..••«•••*""""•••.

7'

MANUFACTURING

20

20

J

J

L
1966

1965

1967

1968

L

J

1969

L

J

1970

L
1971

J/SEE FOOTNOTE 3 BELOW.
SOURCES: SECURITIES AND EXCHANGE COMMISSION AND DEPARTMENT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS

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

M anufaetui 'ing

Transportat ion

Com-

ComPeriod

Total »

Mining

Other

Public
utilities

munication

mercial

and

1961
1962
1963
1964.
1965. _ _ _ _ _
1966_
1967
1968
1969
1970 3
1971

__

Dur-

Non-

Total

able
goods

durable
goods

35. 91
38. 39
40. 77
46. 97
54. 42
63. 51
65. 47
67. 76
75. 56
79. 71
81. 44

14. 33
15. 06
16. 22
19. 34
23. 44
28. 20
28. 51
28. 37
31. 68
31. 95
30. 11

6.
6.
7.
9.
11.
14.
14.
14.
15.
15.
14.

31
79
53
28
50
06
06
12
96
80
31

8. 02
8. 26
8. 70
10. 07
11. 94
14. 14
14. 45
14. 25
15. 72
16. 15
15. 80

1. 29
1. 40
1. 27
1. 34
1. 46
1. 62
1. 65
1.63
1. 86
1. 89
2. 08

0. 82
1. 02
1. 26
1. 66
1. 99
2. 37
1. 86
1. 45
1. 86
1. 78
1. 64

0. 73
. 52
. 40
1. 02
1. 22
1. 74
2. 29
2. 56
2. 51
3.03
1.84

1. 23
1. 65
1, 58
1. 50
1. 68
1. 64
1.48
1. 59
1. 68
1. 23
1. 32

5. 00
4. 90
4. 98
5. 49
6. 13
7.43
8. 74
10. 20
11. 61
13. 14
15. 52

3. 39
3.85
4. 06
4. 61
5. 30
6. 02
6. 34
6. 83
8. 30
10. 10
10. 99

9. 13
9. 99
10. 99
12. 02
13. 19
14. 48
14. 59
15. 14
16. 05
16. 59
17. 94

78.22

1.
1.
1.
1.

37
12
22
22

12. 14
12. 72
13.84
13. 68

9. 14
10. 38
10. 62
10. 20

16. 52
16. 98
17. 00
15.97

10. 70
11. 21

17. 39
17. 72

Railroad

Air

1970: I
II
III
IV

80. 22
81. 88
78. 63

32. 44
32. 43
32. 15
30. 98

16. 40
16. 32
15. 74
14. 92

16. 05
16. 11
16. 40
16. 05

1.
1.
1.
1.

92
84
86
94

1.74
1. 88
1. 96
1. 56

2.
2.
3.
3.

1971: I
II

79. 32
81. 61

30. 46
30. 12

14. 21
14. 06

16. 25
16. 06

2. 04
2. 08

1.46
1. 88

1. 29
2. 28

1. 33
1. 40

14. 64
14. 91

82. 38
82. 42

29. 74
30. 22

14. 53
14. 45

15. 21
15. 76

2. 10
2. 09

1. 78
1. 46

1. 58
2. 21

1. 32
1. 23

16. 05
16. 36

III 3

IV3

1
Excludes agricultural business; real estate operators; medical, legal, educational, and cultural service; and nonprofit organizations.
2
Includes trade, service, construction, finance, and insurance.
3
Estimates based on expected capital expenditures as reported by business
in late July and August 1971. Includes adjustments when necessary for systematic
tendencies in expectations data.
NOTE.—Annual total is the sum of unadjusted expenditures; it does not




94
88
24
08

other 2

29 .80
28 .86

necessarily coincide with the average of seasonally adjusted ligures.
These figures do not agree with the totals included in the gross national product
estimates of the Department of Commerce, principally because the latter cover
agricultural investment and also certain equipment and construction outlays
charged to current expense.
Sources: Securities and Exchange Commission and Department of Commerce.

EMPLOYMENT, UNEMPLOYMENT, AND WAGE&
STATUS OF THE LABOR FORCE
The civilian labor force rose by 286,000 (seasonally adjusted) in September. Total employment rose somewhat
more (328,000); consequently total unemployment registered a small decline.
MILLIONS OF PERSONS*

MILLIONS OF PERSONS*
1 90

90
SEASONALLY ADJUSTED

85

CIVILIAN LABOR FORCE

80

EMPLOYMENT

70

UNEMPLOYMENT

.V.
1 M 1 I I M I 1 I

I I M

I 1 1 I I I ! I I 1I

! 1I I !1

! 1 1 1 I I 1 1 ! ! 1

PERCENT OF CIVILIAN LABOR FORCE

PERCENT OF CIVILIAN LABOR FORCE

uNE/v\ >LOY/V\ Ehtf

! 11 I 1I I I 1 I I

&\s ONALL f

*AT E

ADJUSTEC>

1
_

~n

m

r n~
]\ j i =
-- r-

19<!55

196d

_-,
l

—

96;j

"TT TTTT
J 1I 1 1
1 M

_

~1~*

nrrmTf~T
TH ;

19 58

i

i 1

! {
1969

1

1j

I I I

Period

1966...
1967___
1968...
1969...
1970_.

78, 893
80, 793
82, 272
84, 240
85, 903

1970:
Aug.
Sept.
Oct..
Nov.
Dec.
1971:
Jan..
Feb.
Mar.
Apr..
May.
June.
July.
Aug.
^Sept^
1

87,
85,
86,
86,
86,

248
656
255
386
165

85, 628
85, 653
85, 598
85, 780
85, 954
87, 784
88, 808
88, 453
86, 884

COUNCIL Or ECONOMIC ADVISERS

Uiiempl oyment
Civiliain emTotal
Civilia n emplo y merit
ploy inent
rate (pe rcent of
labor
civilia n labor
force
Non- Unem- (includ- Civilian
Non- Unemfor ce)
ploylabor
Agriployagriagriing
Total
ment
force
Total
culment
eulculUnad- SeasonArmed
tural
tural
tural
justed ally adForces)
justed
Thousands of ]Dersons 16 years of age and o ver
Percent
72, 895 68, 915 2,875 I 78, 893 75, 770 72, 895 3, 979 68, 915 2, 875
3. 8
74, 372 70, 527 2, 975 80, 793 77, 347 74, 372 3, 844 70, 527 2, 975
3.8
75, 920 72, 103 2,817 82, 272 78, 737 75, 920 3, 817 72, 103 2, 817
3. 6
84, 240 80, 734 77, 902 3, 606 74, 296 2, 832
77, 902 74, 296 2, 832
3. 5
78, 627 75, 165 4, 088 85, 903 82, 715 78, 627 3,462 75, 165 4, 088
4.9
<Seasonally adjusted
Unadj' listed
79, 894
78, 256
78, 916
78, 741
78, 516

76,
74,
75,
75,
75,

112
730
522
515
564

4,
4,
4,
4,
4,

220
292
259
607
636

85, 904
86, 084
86, 379
86, 512
86, 622

82, 770
82, 975
83, 300
83, 473
83, 609

78, 508
78, 479
78, 691
78, 550
78, 463

3, 435
, 436
, 293
, 353
, 408

75, 073
75, 043
75, 398
75, 197
75, 055

4,262

4,496
4, 609
4, 923
5, 146

5. 2
5. 1
5. 5
5. 6

77,
77,
77,
78,
78,
79,
80,
80,
79,

74,
74,
74,
74,
75,
75,
76,
76,
75,

361
415
452
699
111
559
710
853
851

5,414
5, 442
5, 175
4, 694
4, 394
5, 490
5, 330
5, 061
4,840

86, 873
86, 334
86, 405
86, 666
87, 028
85, 948
86, 626
87, 087
87, 347

88, 897
83, 384
83, 475
83, 783
84, 178
83, 132
83, 829
84, 312
84, 598

78, 864
78, 537
78, 475
78, 698
78, 961
78, 443
78, 941
79, 197
79, 525

, 413
,329
,396
, 558
3,458
3, 294
3, 367
3,415
3,856

75, 451
75, 208
75, 079
75, 140
75, 503
75, 149
75, 574
75, 782
76, 169

5,033

6. 6
6. 6
6. 3
5. 7
5. 3
6. 5
6. 2
5. 9
5. 8

238
262
493
204
709
478
681
618
295

Total labor force as percent of noninstitutional population.

10



19 7

19 7C

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

Total
labor
force
(including
Armed
Forces)

"

~_ -T"

Source: Department of Labor.

4, 847

5,000
5, 085
5,217
4, 689
4,888
5, 115
5,073

5.0

5. 1
5.4

5. 5
5.9

6. 2
6. 0
5. 8
6.0

6. 1
6. 2
5.6
5.8

6. 1

6.0

Labor
force
participation
rate,
unadjusted 1
60. 1
60.6
60. 7
61. 1
61. 3
62. 1
60.9
61.2
61. 2
61. 0
60. 5
60. 5
60.3
60. 4
60. 4
61. 6
62. 2
61. 9
60. 7

SELECTED MEASURES OF UNEMPLOYMENT AND PART-TIME EMPLOYMENT
\\ 6.0 percent (seasonally adjusted) the overall unemployment rate in September was about unchanged from August
and from the average rate that has prevailed since November 1970. The number of part-time workers for economic
reasons declined by over 200,000 in September.

..
UNEMPLOYMENT RATE,
ALL CIVILIAN WORKERS

UNEMPLOYMENT RATE, EXPERIENCED
WAGE AND SALARY WORKERS

UNEMPLOYMENT RATE,
MARRIED MEN

1971

1965

COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF LABOR

Uneniploymemt rate
(percen t of civilkin labor
for ce in grou

Persons at work in nonagri cultural irtdustries
by hours worked j>er week 2
Uiider 35 ho urs

p)

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

Period

Over 40
hours

Per cent

1966
1967
1968
1969
1970

3.8
3.8
3.6

3. 5
4. 9

1970: Aug
Sept _
Oct

..

Nov
Dec

1971: Jan_
Feb

Mar

Apr. _ _
May_ _June
Julv _
Aug
Sept

5. 1
5. 4
5. 5
5. 9
6. 2

6.0

5. 8
6. 0
6. 1
6. 2
5. 6
5.8

6. 1
6. 0

3. 5
3. 6

3.4

1. 9
1. 8
1.6

3. 3
1. 5
2. 6
4. 8
Seasonall ?/ adjusted
2. 8
5. 0
2. 9
5. 2
5. 4
3. 0
5. 7
3. 2
6. 1
3. 4
3. 3
5. 8
3. 2
5. 6
3. 2
5. 8
5. 7
3. 1
3. 3
5. 8
3. 1
5. 4
3. 1
5. 6
5. 7
3. 2
3. 3
5. 5

4. 2
4. 2
4.0

3. 9
5. 4

5. 5
5. 9
6. 1
6. 4
6.4

6. 4

6.3

6. 5
6. 4
6. 8
5. 6

6.3

6. 5
6. 3

21,
20,
20,
20,
18,

18, 459
12, 872
19, 639
18, 647
20, 233
19, 070
18, 463
19, 448
18, 207
19, 505
19, 069
17, 805
17, 949
19, 964

Man-hours lost by the unemployed and persons on part-time for economic
sons as a percent of potentially available labor force man-hours.
Differs from total nonagricultural employment (p. 10), which includes perms with jobs but not at work for such reasons as vacation, illness, bad weather,
ind industrial disputes.
3
Includes persons who worked part-time because of slack work, material
shortages or repairs, new job started, or job terminated.
2




334
920
600
608
925

35-40
hours

Part-ti me for
economi c reasons
Total

Part-ti me for
economi c reasons

Usually Usually Usually
fullfullparttime 3
time 3
time 4
Thousan ds of pers ons 16 ye ars of age and over
32, 088 12, 034
871
793
32, 616 13, 290
1,060
853
32, 658 14, 785
895
820
34, 201 15, 210
855
955
33, 537 18, 222
1, 201
995
Seasonall y
1Jnadjustea I
34, 782 13, 004
1, 390
1,307
1, 292
17, 072 40, 209
973
1, 071
1, 005
34, 154 18, 177
1, 253
1,347
920
31, 704 21, 993
1, 249
1, 250
1, 103
36, 249 16, 433
1, 020
1,309
1, 382
35, 687 16, 576
973
1, 442
1, 377
33, 881 18, 966
1,267
1, 123
1, 227
35, 830 16, 267
1,284
1, 093
1, 242
35, 767 16, 650
1,242
1,309
988
36, 540 16, 041
1, 102
1,081
1,219
36, 723 14, 646
1, 142
1,515
990
34, 528 13, 898
1,094
1,939
1, 134
35, 307 13, 329 5 1, 262 5 1, 752
1, 173
36, 888 15, 081
1, 094
1, 126
1,056

Usually
parttime 4

adjusted
967
1, 070
1, 062
1, 164
1, 151
1, 107
1, 231
1, 214
1, 185
1, 285
1, 186
1, 316
1, 296
1, 204

* Primarily includes persons who could find only part-time work.
Average hours worked: usually full-time, 24.1; usually part-time, 19.0.
Source: Department of Labor.

5

11

UNEMPLOYMENT INSURANCE PROGRAMS
In September, insured unemployment under State programs averaged 1 36,000 higher than a year earlier. The seasonally
adjusted insured unemployment rate rose from 4.2 percent to 4.4 percent.
MILLIONS OF PERSONS

JAN.

MILLIONS OF PERSONS

MAR.

APRIL

MAY

JUNE

JULY

AUG.

SEPT.

OCT.

SOURCE: DEPARTMENT OF LABOR

Source: Department of Labor.

12



StJite progra ms

Insured Total
unem- benefits Insured
Covered ploypaid
unememploy- ment
(milployment
(weekly
lions
ment
averof dolage)
lars)

Thou sands
56, 342
1,270
57, 976
1, 187
"60, 003
1, 177
1, 932
1, 855
___ _ _
1, 746
Oct
1, 886
Nov
_
__ _
2, 233
2, 632
Dec.
1971: Jan
3, 198
3,214
Feb
3,091
Mar p
2, 756
Apr p _ _ _ _ _ _ _
_
May p
2, 500
June _ _
_ __
2, 332
Julv p _. _
2, 414
Aug * __ _ _ _ _ _
2, 349
Sept ^
„_
2, 127
Week ended:
1971:
Sept 4
2, 172
2,241
11
2, 154
18
25
2, 153
Oct 2*>_
2, 126
9"

1967
196S
1969
1970
1970: Aug
Sept

DEC

COUNCIL Of ECONOMIC ADVISERS

A li progranns

Period

NOV.

2,
2,
2,
4,

220. 0
191. 0
298. 6
143. 5
340. 5
328.5
332. 0
372. 9
484. 1
567. 7
599. 3
683. 7
599. 6
547. 8
545. 2
546. 8
541. 2
420. 0

Initial
claims

Insurec1 unemploymeu t as perExhaus- cent of covered
emplo yment
tions
Unad- Seasonjusted ally adjusted

Weekly iiverage, t lousands
226
1, 205
17
1, 111
201
16
200
16
1, 101
296
25
1, 805
1, 710
248
26
244
1, 607
26
278
26
1, 724
30
2, 017
335
2, 369
398
33
2,799
427
38
2, 751
321
40
2,577
40
275
257
2, 283
42
2,001
42
238
250
45
1, 893
342
46
1, 993
282
1, 912
45
1,743
236
45
1, 753
1, 803
1, 732
1,714
1,690

268
220
231
237
238
281

Per cent
2.5

2. 2
2. 1
3. 4
3. 2
3. 0
3.2
3.7

4. 4
5. 2
5. 2

4.8

4. 3
3. 8
3. 6
3.8

3. 6
3. 3

3. 7

4-1
4-4
4*5
4.0
3. 7
3, 8
3. 9
4.0

4.2

4.4
4.0
4.2

4.4

Benefit s paid
Total Average
(milweekly
check
lions of
dollars) (dollars)
2, 092. 3
2, 031. 6
2, 127. 9
3, 848. 5
312. 3
299. 2
304. 2
342. 1
461. 5
526. 7
557. 9
635. 4
559. 7
501. 3
499. 7
519. 3
515. 1
400.0

41. 25
43. 43
46. 17
50. 31
50. 63
50. 64
51. 45
52. 24
52. 43
52. 83
53. 12
52. 94
53. 37
53. 49
53. 68
53. 56
53. 68
54. 30

3. 3
3. 4

3.2

3 2
3. 2

NOTE.—For definitions and coverage, see the 1967 Supplement to Economic
Indicators.

ONAGRICULTURAL EMPLOYMENT
I oral nonfarm payroll employment rose by 301,000 (seasonally adjusted) in September. Job increases were widely
distributed among all major industry groups.
MIL LIONS OF WAGE
AN!-> SALARY WORKE RS
76

MIL LIONS OF WAGE
AND SALARY WORK! RS (SEASONALLY
16
(ENLARGED S<:ALE)

(SEASONALLY ADJ JSTED)

-

-

„
.

72

68

64

^--^^*
f^

^

40
""
NC>NMANUFACTURI sia
(PRIVATE)

^-—

^^*»^

-„„

^J
p

24

\
••••

"

'""

^,--B -

»»"•*" ***"—

10

SERVIC ES

vi

DURABLE
MANUFACTUREJG
\
12
"" '"Hir«,r
•••••••••—""»'•••""'"
-.

NONDURABLE
AMANUFACTURING

8 -jxmi

...........
..........

^

_

U»JJi l ^ U * . . .
l U . ...

r

'

GOVERNMENT

8

\

„-.-.-'-«-'•"

4] | 1 ! 1 ; I t 1 1 !

'

,,.,,-.-..,.

I ! I ! ! ! ! 11 t ! I 1 ! ! 1 1 1 I ! ! 1

1968

1969

~

\

"

16

12

-

\,«

10

MANUFACTUREsIG

~
20

-

=l

—
L

-

•*""

12

u

36 ...

i » *—.

i

WHOL ESALE AND RET/UL TRADE

_

ALL NOI^^AGRICULTURAL .
ESTA BLISHMENTS

F=T-~

sfi

. 14

i^^^ta rf*

\^"*"*-N*BX'

~

AD USTED)

4

t 1 ! ! ! I ! 1 ! ! Ih

2

^| ! I I ! I 1 ! ! 1 | 1 I 1 1 ! 1 I ! ! ! I

1968

1971

1970

^^

COh4TRACT
CONS'PRUCTION
\

i 1! ! ! 1 1 11 1 t

1970

1969

SOURCE: DEPARTMENT C F LABOR

1 ! 1 ! 1 ( 1 1 t 1 !K
H

1971

COUNCIL OF ECONOMIC ADVISEKS

V^Thousands of wage and salstry wor kers ; x seasons
illy adjusted]

Manufac turing (]private)
Period

Total

1965
1966
1967
1968
1969
1970
1970: Aug__
Sept-Oct__
Nov-Dec__
1971: Jan__
Feb__
Mar-.
Apr_.
May.
Jime_
July..
Aug p.
Sept p

60, 815
63, 955
65, 857
67, 915
70, 284
70, 616
70, 445
70, 480
70, 082
69, 985
70, 313
70, 454
70, 391
70, 480
70, 599
70, 769
70, 657
70, 531
70, 554
70, 855

Total
18, 062
19, 214
19, 447
19, 781
20, 167
19, 369
19, 258
19, 235
18, 669
18, 517
18, 796
18, 747
18, 684
18, 609
18, 639
18, 702
18, 608
18, 533
18, 473
18, 603

N onmanu facturin§5 (private)

NonDurable durable Total
goods goods
10, 406
11, 284
11, 439
11, 626
11, 895
11, 198
11, 132
11, 116
10, 598
10, 449
10, 738
10, 697
10, 642
10, 571
10, 598
10, 651
10, 598
10, 552
10, 488
10, 582

7, 656
7, 930
8, 008
8, 155
8, 272
8, 171
8, 126
8, 119
8, 071
8,068
8, 058
8, 050
8, 042
8, 038
8, 041
8,051
8, 010
7, 981
7,985
8,021

32, 679
33, 950
35, 012
36, 288
37, 915
38, 712
38, 667
38, 707
38, 796
38, 797
38, 834
38, 988
38, 963
39, 079
39, 129
39, 209
39, 211
39, 186
39, 219
39, 344

Con- Transtract portation
Mining conand
strue- public
tion utilities
632 3,186 4,036
627 3, 275 4, 151
613 3,208 4,261
606 3,285 4,310
619 3,435 4,429
622 3, 345 4, 504
620 3, 302 4, 523
620 3, 274 4, 518
621 3,284 4, 517
624 3, 294 4, 506
623 3, 302 4, 450
625 3, 271 4, 507
622 3, 198 4, 526
622 3, 264 4, 520
623 3, 282 4, 505
622 3,275 4, 518
619 3, 255 4, 500
597 3, 228 4,476
609 3, 218 4, 435
619 3, 238 4,454

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 per\ons, domestic servants, and personnel of the Armed Forces. Total derived from
'his table not comparable with estimates of nonagricultural employment of the
civilian labor force, shown on p. 10, which include proprietors, self-employed




Gover nment

Whole- Finance,
insursale
ance, Services Federal State
and
and
and
retail
local
i
real
trade estate
12, 716
13, 245
13, 606
14, 084
14, 639
14, 922
14, 907
14, 931
14, 946
14, 902
14, 952
15, 039
15, 059
15, 074
15, 107
15, 148
15, 135
15, 158
15, 213
15, 255

3, 023
3, 100
3, 225
3,382
3, 564
3,690
3, 683
3, 698
3, 706
3, 721
3, 731
3,746
3,749
3, 758
3,769
3, 788
3, 807
3,806
3, 804
3, 821

9,087
9,551
10, 099
10, 623
11, 229
11, 630
11, 632
11, 666
11, 722
11, 750
11, 776
11, 800
11, 809
11, 841
11, 843
11, 858
11, 895
11, 921
11, 940
11, 957

2,378
2,564
2,719
2,737
2,758
2, 705
2, 635
2, 657
2, 659
2,664
2,661
2, 661
2, 662
2, 662
2,667
2, 667
2,640
2, 643
2, 650
2, 677

7, 696
8, 227
8, 679
9, 109
9, 444
9,830
9, 885
9, 881
9, 958
10, 007
10, 022
10, 058
10, 082
10, 130
10, 164
10, 191
10, 198
10, 169
10, 212
10, 231

persons, and domestic servants; which count persons as employed when they
are not at work because of industrial disputes; and which are based on an enumeration of population, whereas the estimates in this table are based on reports
from employing establishments.
Source: Department of Labor.
"I O

WEEKLY HOURS OF WORK - SELECTED INDUSTRIES
The average workweek of production workers in private nonfarrn industries declined 0.2 hour (seasonaily adjusted)
in September. The workweek of construction workers fell a full hour over the month/ while the factory workweek
declined 0.2 hour.
HOURS PER WEEK (SEASONALLY ADJUSTED)

HOURS PER WEEK (SEASONALLY ADJUSTED)

46

46

TOTAL

NO^AGRICULTURAL PRIVATE

MANUFACTl JRING

AA

<H

A")

42
40

/V"—-I%/-——

1

^^
^"*~""'"N^~

38

38

OX

M

4| 1 ! 1 i 1 I ! 1 1 _L_
¥

1 1 I 1 1 11 ! I 1I

I ! ! t I I ! ! 1 I I

1969

1968

1970

1 1 ! t 1 ! I 1 1 ! iK

^4

/I)

i

1

! 1

1 1 I

1 I 1

1 1 1 1 1 1 1 1 1

1969

1968

1971

1 !

t

t

!

1 1

!

1 1 1 1 1

I

I I 1I I 1! I I 1 N

1970

1971

M

42

CONTRACT CONSTRUCTIC DN

RETAIL TRADE

40
38
36

A*—y

n^XN^V^

^^\/

V

34

vs^

32
30

At

1 1

! t I

1 ! 1 ! !

1 ! t

1 1 I

1968

»

1 1 ! 1

1969

!

1 !

!

1 1 1 t

1970

1 1 1

t t ? i t ! i i i i i [s
1971

1968

N

1971

1969

COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF LABOR

(Average hours per week1]
Total
n onagricultural
private 2

Period

Manufacturing

Contract
.

Retail
trade 3

i

Total
nonagricultural
private 2

.
_ _ _ __ ___

1969

_ _ _ _ _ _ _

1970
1970: Aua;

Sept _
Get
Nov.- _
Dec
1971: Jan

Feb..

_ _ _ _ _ _ __
_ __
_ _
__ __

_ _ _ _ _ _ _ __

Mar_ _ _ _ _
Apr
_
May

_ __ __

June
Julv
Aug *v > _

Sept

1
Data relate to production
2
Also includes other private
3

___

_ _

38. 6
38. 7
38. 8
38. 7
38. 8
38. 6
38. 0
37. 8
37. 7
37. 1
37. 6
37. 0
36. 9
36. 8
37. 1
36. 6
36. 6
36. 8
36. 7
36. 8
37. 3
37. 3
37.4
37.0

39. 8
40. 4
40. 5
40. 7
41. 2
41. 3
40. 6
40. 7
40. 6
39. 8
39. 8
39. 6
39. 6
39. 7
39. 9
39. 6
39. 4
39. 7
39. 5
40. 0
40. 2
39. 8
39. 8
39. 9

workers or nonsupervisory employees.
industry groups shown on p. 13.
Includes eating and drinking places."

14



Contract
construc-

R(
trs

Seasonally adjusted

Unadjusted
1901
1962
1963
1964
1965
1966
1967
1968

Manufacturing

36. 9
37. 0
37. 3
37. 2
37.4
37. 6
37. 7
37. 4
37. 9
37. 4
38. 5
36. 2
37. 6
36. 2
37. 4
36. 0
35. 5
37. 1
37. 0
37. 0
38. 0
38. 1
38. 3
37. 3

37. 6
37. 4
37. 3
37. 0
36. 6
35. 9
35. 3
34. 7
34. 2
33. 8
35. 0
33. 8
33. 5
33. 4
33. 9 !
33. 1
33. 1
33. 1
OO

O

OO. 0

33.
34.
34.
34.
33.

3
0
8
7
7

37. 1
36. 7
36. 9
36. 9
37. 0
36. 9
37. 0
37. 0
37. 0
36. 9
37. 1
36. 9
36. 9
36. 7

Source: Department oi Labor.

39. 8
39. 3
39. 4
39. 6
39.5
39. 8
39. 8
39. 8
39. 8
40. 0
40. 0

40. o

39. 8
39. 6

37. 3
35. 0
37. 0
37. 2
37. 7
37. 6
36. 8
37. 8
37. 1
36. 8
37.2
37. 1
37.1
36. 1

33. 9
33. 7
33. 8
33. 7
33. 7
33. 6
33. 6
33.5
S3. 7
33. 7
33. 7
33. 8
33. 6
83.6

AVERAGE HOURLY AND WEEKLY EARNINGS - SELECTED INDUSTRIES
Average hourly earnings of private nonfarm production workers rose 3 cents in September to $3.48. Weekly earnings
declined slightly, reflecting a shorter workweek.
DOLL ARS
240

DOLLARS
6.00

AVERAGE HOURLY EARhIINGS

AVERAGE WEEKLY EARh4INGS

/
rj

S~ * **
"1

-

x

^/
_/j^-\

5,00

/*

A > <i

200

^f

CONTRACT
5NSTRUCTION

yvi

^ CONTRACT
CONSTRUCTION

f*""
/A

/ VI

160

4.00

.......iti.***
MAN JFACTURING

~

.HMO**1

\
. ." " *
«. » "

3.00

......»"••"'"•-

.

-

<,•••«•"
_

«» •>*

mm'*

*B*I^™

\

...

" " " ^
• • ^ ^

120

'"""

--»-

!

•»»

•

~
^

^x"*»

80

RETAIL TRADE -

^

_

11 ! 1 1 ! ! 1 1 1 1 !

1 1 ! 1 1 1 1 1 I I 1

i i i i i f i i iii

1969

1968

i iiii!iiiti
|

1970

40

TM'

1971

n

RETAIL TRADE

-

-

SOURCE:

_-^^*
.._ - .•.» **^

TOTAL NONAG RICULTURAL
PRIVA TE

^ ^

1.00

^^
.

*~~~*^

^^i •* • mmg^^'

—-^

""**"*"

-

>•"•••"'

<....«•»* <t<
—^»»»«jv%*««'»«j.j,»*

\

_

ZOO

^

MANUFACTURING

+~^~~~^

TOTAL NONAG RICULTURAL
PRIVA TE

'

-

-S

1 1! 1 ! ! 1 ! I ! I

1969

1968

_

! 1 . I , ! . . . , ,

I . I M 1 , • , , ^

1970

DEPARTMENT OF LABOR

1971

COUNCIL OF ECONOMIC ADVISERS

[For production workers or nonsupervisory employees]
Average '. lourly earn ings— curr 3nt prices
Period

1961
1962
1963_
1964
1965
1966
1967
1968
_
1969
1970
1970: Aug_
Sept
Oct
Nov
Dec__ _ _ _
1971: Jan
Feb
Mar
Apr_ _
Ma}- _
June
July r
Aug '
Sept" _ -

Average ^weekly earrlings— current prices

Total
nonagricultural
private l

Total
nonagricultural1
private

$2.
2.
2.
2.
2.
2.
2.
2.
3.
3.
3.
3.
3.
3.
3.
3.
3.
3.
3.
3.
3.
3.
3.
3.

Manufactur-

14
22
28
36
45
56
68
85
04
22
25
29
28
29
30
33
35
36
38
41
42
43
45
48

1
Also includes other private industry
:
Includes eating and drinking places.
3

ing

$2. 32
2. 39
2. 46
2. 53
2. 61
2.72
2. 83
3. 01
3. 19
3. 36
3. 37
3. 42
3. 37
3. 39
3. 47
3. 50
3. 51
3. 52
3. 54
3. 55
3. 57
3. 57
3. 56
3. 60

Contract
construction
$3. 20
3. 31
3.41
3. 55
3. 70
3. 89
4. 11
4. 41
4. 79
5. 25
5. 32
5. 38
5. 44
5. 46
5. 46
5. 53
5. 56
5. 54
5. 55
5. 65
5. 63
5. 68
5. 75
5. 86

Retail
trade 2
$1. 56
1. 63
1. 68
1. 75
1. 82
1. 91
2. 01
2. 16
2. 30
2. 44
2. 45
2. 48
2. 48
2. 49
2. 47
2. 52
2. 54
2. 55
2. 56
2. 57
2. 58
2. 58
2. 58
2. 60

groups shown on p. 13.

Earnings in current prices, adjusted to exclude the effects of overtime and
interindustry shifts.
68-438°—71




3

$82.
85.
88.
91.
95.
98.
101.
107.
114.
119.
122.
121.
121.
121.
122.
121.
122.
123.
124.
125.
127.
127.
129.
128.

60
91
46
33
06
82
84
73
61
46
20
73
03
07
43
88
61
65
05
49
57
94
03
76

Manufacturing

$92.
96.
99.
102.
107.
112.
114.
122.
129.
133.
134.
135.
133.
134.
138.
138.
138.
139.
139.
142.
143.
142.
141.
143.

34
56
63
97
53
34
90
51
51
73
13
43
45
58
45
60
29
74
83
00
51
09
69
64

Contract
construction

Retail
trade 2

$118.
122.
127.
132.
138.
146.
154.
164.
181.
196.
204.
194.
204.
197.
204.
199.
197.
205.
205.
209.
213.
216.
220.
218.

$58. 66
60. 96
62. 66
64. 75
66. 61
68. 57
70. 95
74. 95
78. 66
82. 47
85. 75
83. 82
83. 08
83. 17
83. 73
83. 41
84. 07
84. 41
85. 25
85. 58
87. 72
89. 78
89. 53
87. 62

08
47
19
06
38
26
95
93
54
35
82
76
54
65
20
08
38
53
35
05
94
41
23
58

Manufo icturing
indu s tries
Adjusted Average
weekly
hourly
earnearnings,
ings,
1 OAT
lyo/ —1967
3
100
prices 4
83. 6
85. 7
87. 8
90. 3
92. 6
95. 7
100. 0
106. 2
112. 6
119. 7
120. 4
121. 6
121. 1
121. 9
123. 8
124. 8
125. 3
125. 8
126. 5
126. 9
127. 3
127. 8
128. 3
192. 2

$103. 06
106. 58
108. 65
110. 84
113. 79
115. 58
114. 90
117. 57
117. 95
114. 99
114. 74
115. 26
113. 00
113. 57
116. 25
116. 28
115. 82
116. 64
116. 33
117. 55
118. 12
116. 66
115. 95
117. 35

4

Earnings in current prices divided by the consumer price index.
Source: Department of Labor.

15

PRODUCTION AND BUSINESS ACTIVITY

INDUSTRIAL PRODUCTION

In September, industrial production (seasonally adjusted) rose 0.5 percent, following a decline of 1.2 percent in
August. The September index was 1.8 percent below the June level and 5.9 percent below its peak level in September 1969.
Index, 1967=100 (SEASONALLY ADJUSTED)

Index, 1967=100 (SEASONALLY ADJUSTED)
150

130

TOTAL

UTILITIES AND MINING

120

140

110

130

A

UTILITIES

100

120

90

110

80

100

V

~~
1968

1970

1969

MINING

/.,,!,,»/,
1968

1971

1971

1970

1969

130

120

MANUFACTURING

NONDURABLE

MARKET GROUPS

jr^S^HyO-^

110

120
MATERIALS
'•\
-

100

110

90

INTERMEDIATE PRODUCTS

*.~..>*.k

Xv,,..k^'-^'^%,.
^t'n.^Vy?

100

FINAL PRODUCTS

90

80 I i t i i i 1
1968

1968

1971

1969

1970

SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Period

1961
1962
1963
1964
1965 ___
1966
1967
1968
1969
1970
1970: Aug
Sept- _ _ _
Oct__
Nov_
Dec
1971: Jan
Feb
Mar
Apr
May
June__
Julv
Aug v
Sept"

Total
industrial
production

66.7
72.2
76. 5
81.7
89.2
97.9
100. 0
105. 7
110. 7
106. 7
107. 5
106. 5
103. 7
102. 6
104. 6
105. 3
105. 7
105. 5
106. 2
107.0
107. 2
106. 1
104.8
105. 3




COUNCIL OF ECONOMIC ADVISERS

[1967=100, seasonally adjusted]
Industry
Market
n
M anufactur g
Fi nal produc3tS
InterMining Utilities
Conmediate
NonEquip- products
Total Durable durable
sumer
Total
ment
goods
65. 6
71. 4
75. 8
81. 2
89. 1
98. 3
100. 0
105. 7
110. 5
105. 2
105. 5
104. 8
101. 4
100. 2
102. 4
103. 3
103. 9
103. 2
104. 4
105. 7
105. 6
104.8
103.1
103. 3

62. 1
69.0
73. 5
79. 0
88. 5
99. 0
100. 0
105. 5
110.0
101. 5
103. 5
100. 7
95. 7
93. 8
97. 3
98. 1
98. 6
98. 3
99. 1
100. 5
100. 1
99. 3
96.3
96. 8

Source: Board of Governors of the Federal Eeserve System.

16

1971

70.7
75. 1
79. 2
84. 4
90. 0
97. 3
100. 0
106. 0
111. 1
110. 6
108. 6
110. 7
109. 7
109. 6
110. 0
110. 9
111. 7
110. 4
112. 1
113. 3
113. 7
113.0
112.9
112. 8

83. 2
85. 6
89.0
91. 1
93.9
98. 4
100. 0
103. 9
107. 2
109. 7
108.8
110.9
112. 4
113. 7
112. 1
111. 1
110. 1
111. 4
110. 4
108. 6
108.9
105.8
105. 6
107. 3

65. 3
70. 2
75. 1
81. 9
86. 9
93. 6
100. 0
109. 4
119. 5
128. 5
130. 5
133. 9
134. 0
129. 6
130. 2
129. 6
132. 2
131. 5
133. 2
132. 1
135. 6
137. 8
137.4
139. 3

65. 3
70.8
74. 9
79. 6
86. 8
96. 1
100. 0
105. 8
109.0
104. 4
104. 9
103. 5
101. 4
100. 2
102.2
102. 9
103. 0
102. 5
103. 6
103. 9
104. 5
104. 7
104.8
1049

72. 8
77.7
82. 0
86. 8
93. 0
98. 6
100. 0
106. 6
111. 1
110. 3
111. 6
110. 1
109. 0
107. 7
110.8
112.8
112. 9
112. 7
114. 6
115. 7
116. 1
115. 8
116.0
116. 2

55. 6
61. 9
65. 6
70. 1
78.7
93. 0
100. 0
104. 7
106. 1
96. 2
95.5
94. 2
90. 8
89. 8
90. 3
88.9
89.3
88. 4
88.1
87.8
88.2
89. 3
89. 2
89. 3

72. 4
76.9
81. 1
87. 3
93. 0
99. 2
100.0
105.7
112. 0
111. 9
112. 2
111. 4
111. 9
111. 6
112. 1
110. 9
112. 5
112. 0
112. 4
113. 5
112.4
113.3
111.4
111. 2

TYT Q f &

rials

66.4
72.4
77.0
82. 6
91. 0
99. 8
100. 0
105. 7
112. 4
107. 8
109. 3
109. 0
104. 1
102. 8
105. 4
106. 5
106. 8
107. 1
107. 5
108. 9
109.0
105. 5
102. 4
103. 7

PRODUCTION OF SELECTED MANUFACTURES
In September, output of primary metals (seasonally adjusted) increased sharply above its depressed August level.
Output declined for all other major groups of durables and for most nondurables.
Index, 1967 = 100 (SEASONALLY ADJUSTED)
130

Index, 1967=100 (SEASONALLY ADJUSTED)
120

110

LUMBER AND PRODUCTS
.4 /
-<^jr.

~'J

120

100

90
i
TRANSPORTATION I
I
1
EQUIPMENT
I
I
I
_LJ_
II
1I

80

70

n tM i i !iM

V,1

! II I

I 1 ! I I 1.1 I I I 1

1968

1970

1969

1971

Index, 1967=100 (SEASONALLY ADJUSTED)
130

1968

1969

Index, 1967=100 (SEASONALLY ADJUSTEDJ
120

FOODS AND TOBACCO
110

\T

100

90
1968

1971

1968

1971

SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

COUNCIL OF ECONOMIC ADVISERS

[1967 = 100, seasonally adjusted]
Durab le manufaictures
Period

1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1970: Aug
Sept
Oct_
Nov. _
Dec
1971: Jan_
Feb
Mar
__ _
Aor
May

June
Julv v
Aug
Sept »

Primary
metals

_
_

__ _ _

_
_

_

_

FabriTranspor- Lumber Textiles, Paper Chemicals,
Foods
cated
Machin- tation
and
apparel,
and
petrometal
ery
equipand
prodprint- leum, and tobacco
products
ment
leather
ucts
rubber
ing

72. 9
78. 2
84. 3
95.7
104. 0
108. 8
100. 0
103. 2
114. 1
106. 9
111. 9
108. 8
102. 5
98. 4
104. 3
108. 1
105. 5
106. 6
108. 7
114. 3
108. 1
98.9
78.0
87. 1

Source; Board of Governors of the Federal Reserve System.




Ncmdurable manufactu res

69. 8
75.9
78. 4
83. 3
92. 6
100. 5
100. 0
106. 3
113. 6
109. 4
111. 8
109. 0
106. 3
104. 5
106. 2
105. 4
106.6
104. 9
108. 5
108. 5
108. 5
110. 8
108.2
105. 5

57. 1
64. 8
67. 9
74. 3
84. 1 .
98. 6
100. 0
101. 9
106. 8
100. 5
101. 5
100. 4
96. 5
94. 9
94. 8
93. 4
94. 2
94. 0
94. 2
95. 3
95.2
97. 4
95.8
95. 7

59. 9
69. 3
75. 9
79. 6
91. 3
101. 2
100. 0
109. 7
107. 6
90. 3
96. 1
87. 5
73. 8
71.7
86. 8
91. 1
92. 6
91. 3
89. 5
90. 9
91.7
88. 5
91. 1
90. 4

77.7
82. 0
85. 8
91. 0
94. 7
98. 4
100. 0
104. 8
108. 6
106. 3
108.9
107. 2
106. 8
106. 4
106. 8
109. 7
110.8
110. 3
112. 5
110. 0
111. 0
115. 4
116. 2

80. 2
84. 3
86. 9
91. 9
97.8
101. 7
100. 0
104. 9
105. 9
100. 2
99. 3
99. 1
98. 7
96. 0
97. 1
98. 6
98.0
97.3
99. 8
101. 5
102.4
101. 5
99. 2
99. 1

71. 0
74. 3
78.4
84. 5
90.5
98. 9
100. 0
104. 2
109. 1
107. 8
107.9
106. 7
106. 1
106. 4
105. 0
107. 1
108. 1
104. 6
106. 9
106.9
106.0
106. 1
107.8
106. 8

58.3
64.5
70. 0
75. 9
83. 8
94. 1
100. 0
109. 6
118. 4
118. 2
117. 8
119. 1
117. 2
117. 8
118. 9
118. 2
120. 9
120. 5
122. 4
124. 2
125. 3
124.0
124.3
124. 1

81. 5
84. 0
87. 0
90. 6
92. 6
97. 0
100. 0
103. 6
107. 5
110. 8
104. 4
112. 0
111. 7
111. 9
112. 5
113. 9
113. 1
112. 2
112. 9
113. 6
113. 7
113.5
112. 9
113.8

17

WEEKLY INDICATORS OF PRODUCTION
Production of cars and trucks and steel increased sharply in September. Other weekly indicators of production were
mixed.

MILLIONS OF SHORT TONS

MILLIONS OF TONS

CDAILY AVERAGE)

BITUMINOUS COAL
2.5

2.0
Jf
1.5 LI

2.5

\!
•

?

\ I
\/
V

7

1_4

i-

1968 '• | /

.

i

•'
:

^-1969

I

1.0
1.5 „
"J
F
M
A
M
BILLIONS OF KILOWATT HOURS

t

J

J

l

A /
\/

S

A

S

O

N

N

D

t

1 I I

D

! I . I I I ! 1 ,

F

M

I ,

I I t .

A

.

M

I .

, .

J

I

.

.

I I

I

J

I I

I I t I I

A

i

S

t*. .

. I , t 1 I

O

N

.

.

I.

D

35

20

I J I I I ! I I i I I I I \ I I I I 1 I I t t I I ! I I I .1 I I I I I I i I I ; ! I I I I I I I ! I I

J

F

M

A

M

J

J

O

J

F

M

A

M

J

J

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

Period
Weekly average:
1964
1965
1966
1967
1968
1969
1970*
1970: Aug
Sept
Oct
Nov
_
Dec
_
1971: Jan
Feb
Mar_._ _ _
Apr
May
June
July
Aug___ _
Sept*
Week ended:
1971: Sept 4 _ _ _ _ _
11
18
25_______
Oct 2
9*
16 "_
1
2

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




S

O

N

D

COUNCIL OF ECONOMIC ADVISERS

Electric
Bituminous Freight Paperboard
Car 3 and tru cks
power
coal mined
produced
loaded
distributed (thousands (thousands (thousands assemb led (thouisands)
(millions of
of short
Cars Trucks
Total
of tons)
of cars)
kilowatWiours) tons) l

2,431
2, 521
2, 572
2, 440
2, 515
2, 709
2, 522
2, 430
2, 506
2, 415
2, 333
2, 361
2, 545
2, 719
2, 854
2, 929
2, 917
2, 678
2,249
1, 303
1, 786

99.6
103. 3
105. 4
100. 0
103. 1
111. 0
103.4
99. 6
102. 7
99. 0
95. 6
96. 8
104. 3
111. 4
117. 0
120. 0
119. 5
109. 8
92. 2
53.4
73. 2

18, 728
20, 169
21, 971
23, 169
25, 244
27, 588
29, 288
32, 191
30, 180
27, 664
28, 306
29, 442
31, 200
30, 864
29, 993
28, 570
28, 921
32, 551
32, 781
32, 786
31, 887

1,630
1,735
1,798
1, 868
1, 827
1, 894
1,990
2, 017
2, 089
2, 047
2, 173
2, 057
2, 058
1, 954
2, 102
2, 197
2, 026
1,963
1, 829
2, 118
2, 129

558
562
570
540
543
543
522
542
541
553
514
454
488
487
506
523
526
525
424
493
502

384
410
446
439
479
507
489
490
469
497
501
442
488
506
516
508
513
510
467
522
510

178. 8
213.7
199. 3
172.9
207.6
195. 7
158. 9
99. 6
137. 8
113. 1
108. 0
155. 8
220. 3
231. 0
230. 2
211. 6
232. 4
212. 3
131. 8
145. 7
215.6

148. 8
179.4
165. 4
142. 4
170. 1
158. 1
125. 9
64. 6
107. 1
88. 8
86. 7
125. 7
181. 7
188. 8
188. 1
170. 6
190. 6
169. 7
106. 5
110. 2
172. 5

30.0
34.3
33. 9
30. 5
37.5
37.6
33. 0
34. 9
30. 7
24. 4
21. 3
30. 1
38. 5
42. 2
42. 1
40. 9
41. 7
42. 6
25. 3
35. 5
43. 2

1,730
1,702
1, 807
1,855
1, 809
1,756
1,843

70. 9
69. 8
74. 1
76. 0
74. 1
72.0
75. 5

32, 671
33. 190
32, 237
29, 926
31, 413
30, 153
2
29, 188 1

2, 178
2,184
2,036
2, 030
2, 288
1, 583

526
440
518
514
514
445

541
405
526
532
545
534

217. 8
178.4
218. 5
230. 6
232. 8
231. 1
228. 5

174. 9
141. 6
175. 0
183. 9
187. 0
184. 2
181. 3

42.9
36. 8
43. 5
46. 7
45. 8
46. 9
47.2

Daily average. Includes data for Alaska.
Not charted.

18

A

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

FTEW CONSTRUCTION
According to preliminary estimates, expenditures for new construction (seasonally adjusted) increased about 1 percent
in August. In the private sector, commercial and industrial building declined while residential nonfarm and other
construction increased.
BILLIONS OF DOLLARS
120

120
SEASONALLY ADJUSTED ANNUAL RATES

100

100

TOTAL NEW

CONSTRUCTION

\

80

60

60

PRIVATE

\. "
- "
40

40
PUBLIC

PRIVATE RESIDENTIAL (NONFARM)

20
1971

1965

COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF COMMERCE

Period

1965
1966
1967
1968
1969
1970

Total new
construction
expenditures

72. 3
75. 1
76. 2
84.7
90. 9
91. 3

T> *
4.rrivate

Total

50. 3
51. 1
50. 6
57.0
62.8
63. 1

ResidentiaJ nonfarm
CommerNew
cial and
l
housing
Total
industrial
units
Bi lions of doli ars
20. 4
26.3
11. 9
24. 0
18. 0
13. 6
23.7
17. 9
13. 1
28. 8
22.4
13. 9
30. 6
23. 7
16. 5
21. 9
16. 5
29. 3

Other

12. 1
13. 6
13.7
14. 2
15. 7
17. 4

Federal,
State,
and
local

22. 1
24. 0
25.6
27. 7
28. 1
28. 2

89. 1
90. 0
91. 0
92. 3
92. 9
99. 2
99. 7
102. 0
102. 2
105. 0
105.2
105.5
105. 9
107. 3

60. 7
61. 5
62. 7
64. 5
64. 6
67. 0
69. 7
70. 3
72. 1
75.4
75. 6
76. 2
76.8
78. 2

27. 0
27. 5
28. 8
30. 5
31. 8
33. 4
34. 2
35. 1
36. 8
39. 2
40. 5
40.4
40. 8
42. 0

20. 4
21. 4
22. 3
23. 2
24. 1
25. 7
26. 9
28. 1
29. 4
30. 8
31. 6
31. 5
31.8
33. 0

1
Includes nonhousekeeping residential construction and additions and altera[ions, not shown separately.
' *F. W. Dodge series. Relates to 50 States beginning 1970 for value index and
)eginning 1971 for floor space.




15. 9
16. 4
16. 1
16. 2
15. 0
15. 7
17. 5
17. 4
17. 4
17.7
17. 0
17.3
17.7
17.4

93. 2
94. 8
100. 0
113. 2
123. 7
123. 1
Seasonally
adjusted

Seasonally / adjusted arinual rates
1970: July
Aug___ _ _ _
Sept _.
Oct
Nov
Dec
1971: Jan
Feb
Mar
Apr
May._ _ _
June— _
July
Aug *__ _ _

Constructio n contracts
CommerTotal value cial and
index,
industrial
(1967 = floor space
100)
(millions of
square feet)

17. 7
17.5
17. 8
17. 8
17. 7
17. 9
18. 0
17.8
17.9
18. 5
18. 1
18. 5
18. 3
18. 7

28. 4
28. 5
28. 3
27.9
28. 3
32. 2
30. 1
31.7
30. 0
29. 6
29. 6
29. 3
29. 1
29. 1

116
135
118
115
130
132
117
126
142
161
141
147
151
153

680
769
694
779
883
741
Seasonally
adjusted
annual
rates
845
732
722
621
648
656
652
600
785
658
761
754
728
658

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

19

NEW HOUSING STARTS AND APPLICATIONS FOR FINANCING
In September, private housing starts at a seasonally adjusted annual rate of almost 2 million units were 1 2 percent
below the high rate of 2.2 million starts in July-August. Permits for future housing declined 2 percent in September^
MILLIONS OF UNITS
2.5

MILLIONS OF UNITS
2.5

1.0

1965

SOURCES: DEPARTMENT OF COMMERCE, FEDERAL HOUSING ADMINISTRATION (FHA), AND VETERANS ADMINISTRATION (VAJ

COUNCIL OF ECONOMIC ADVISERS

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

Period

1965
1966
1967__
1968_
1969
1970
1970: Aug
Sept
Oct
Nov
Dec
1971: Jan
Feb
Mar __
Apr
Mav _
June__
July p
Aug _ _
Sept ^
1

1, 509. 6
1, 195. 9
1, 321. 9
1, 545. 5
1, 499. 6
1, 467. 0

_

131. 6
133. 4
143. 4
128. 3
123. 9
114. 8
104. 6
169. 3
203. 6
203. 5
196. 8
197.0
203.7
172. 2

Private
Total (includingI farm)
Total

One
unit

1, 472. 9 1, 472. 9
1, 165. 0 1, 165. 0
1, 291. 6 1, 291. 6
1, 507. 7 1, 507. 7
1, 466. 8 1, 466. 8
I, 433. 6 1, 433. 6

963. 8
778. 5
843. 9
899. 5
810. 6
812. 9

1,425
1, 509
1, 583
1,693
2, 054
1,725
1, 754
1, 959
1, 912
1, 975
2, 000
2, 229
2, 235
1,958

838
881
890
934

128. 7
130. 9
140. 9
126. 9
121. 4
110. 6
102. 2
167. 9
201. 1
198. 5
193. 8
194. 3
202.2
170.4

1, 240
1,
1,
1,
1,
1,
1,
1,

Authorized by issuance of local building permit; in 13,000 permit-issuing
places beginning 1967; 12,000 for 1963-66, and 10,000 prior to 1963.
2
Units represented by mortgage applications for new home construction.

20



946
985

048
098
124
177
187
208
182

Gover nment
home p rograms
(noni"arm)

Two or
FHA
VA
more
units
509. 1 159. 9
49. 4
386. 5 129. 1
36. 8
447. 7
141. 9
52. 5
608. 2 147. 7
56. 1
656. 2 153. 6
51. 2
620. 7 233. 5
61. 0
Seasona lly ad jus ted annu al
587
628
693
759
814
779
769
911
814
851
823

1, 042
1, 027

776

238
246
266
288
354
410
290
265
278
265
284
283
321

64
60
64
71
78
76
73
83
94
97
94
98
102
97

New
private
housing
units
authorized *

1, 239. 8
971. 9
1, 141. 0
1, 353. 4
1, 322. 3
1, 340. 7
rates
1, 378
1, 388
1,523
1,487
1, 768
1, 635
1, 563
1, 627 ,
1, 638
1, 927
1, 849
2,052
2, 006
1,967

Propose d home
constr uction
— —Applica- Requests
tions for for VA
FHA
commit- appraisals 2
ments 2

188. 9
153. 0
167. 2
168. 9
187. 6
315. 0

102. 1
99. 2
124. 3
131. 7
138. 2
143. 7

327
337
326
345
474
371
350
336
347
374
370
383
359

152
139
168
157
149
190
174
183
210
218
257
228
220
252

Sources: Department of Commerce, Federal Housing Administration (FHA),
and Veterans Administration (VA).

BUSINESS SALES AND INVENTORIES - TOTAL AND TRADE
Total business inventories (seasonally adjusted) rose about $0.7 billion in August after a $0.3 billion rise in July.
Sales were about unchanged.
BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)

BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)

RETAIL TRADE (ENLARGED SCALE)
-DURABLE GOODS STORES

20

1968

1971

SEE_£/BELOW.
SOURCE: DEPARTMENT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS

Total tmsiness 1

R<2tail

Wholesale
Sales2

Period

Sales 2

Inventories 3

Sales 2

Inventories 3

Total

tnventories

NonDurable durable
goods
goods
stores
stores

Total

Durable
goods

29, 386
31, 094
34, 405
38, 073
38, 952
41, 604
44, 623
44, 918
44, 965
45, 453
45, 691
44, 883
44, 507
44, 918
44, 984
45, 432
46, 416
46, 728
47, 146
47, 383
47, 500
48, 187

12, 572
13, 318
15, 253
17, 258
17, 277
18, 851
19, 980
19, 040
19, 739
20, 119
20, 270
19, 291
18, 542
19, 040
18, 987
19, 480
20, 131
20, 232
20, 716
20, 815
20, 879
21, 450

3

Nondurable
goods
stores

TVlillions of dollars, seasonally aid justed
1963
1964
1965
1966
1967
1968
1969
1970
1970: July
Aug_
Sept
Oct
Nov
_
Dec
1971: Jan
Feb
Mar
Apr _
May_
JuneJuly
Aug*
Sept

68, 969
73, 685
80, 276
87, 172
89, 708
96, 892
102, 657
105, 363
106, 754
_ _ 107, 123
106, 672
104, 523
103, 411
105, 663
108, 210
109, 913
111, 733
112, 421
_ _ 113, 493
1 !;•>, 014
1 13, 885
! 113, 571
'

1
The
2

105, 477
111, 457
120, 900
136, 714
145, 072
154, 869
165, 659
171, 998
169, 539
170, 205
170, 956
171, 168
171, 768
171, 998
172, 508
172, 840
173, 706
174, 194
174, 933
175, 252
175, 560
176, 238

13, 382
14, 527
15, 595
16, 979
17, 099
18, 329
19, 726
20, 554
20, 639
20, 698
20, 714
20, 754
20, 641
20, 718
21, 338
21, 334
21, 676
21, 897
22, 449
22, 716
22, 621
22, 602

term "business" also includes manufacturing (seepage 22).
Monthly average for year and total for month.
* Book value, end of period, seasonally adjusted.
* Unofficial estimates.




16, 048
16, 977
18, 274
20, 691
21, 557
22, 528
24, 363
26, 604
25, 410
25, 423
25, 689
26, 003
26, 334
26, 604
26, 646
26, 806
26, 788
27, 046
27, 140
27, 333
27, 866
27, 874

20, 556
21, 823
23, 677
25, 330
26, 151
28, 277
29, 303
30, 381
30, 729
30, 781
30, 885
30, 534
30, 208
30, 481
31, 154
31, 597
32, 267
32, 844
32, 692
33, 310
33, 029
4
33, 576
4
33, 778

6, 661
7,049
7, 849
8, 192
8, 348
9, 187
9, 398
9, 141
9, 487
9, 503
9, 556
8,927
8, 380
8, 659
9,480
9,791
10, 181
10, 449
10, 217
10, 518
10, 531
4
10, 884
4
11, 144

13, 895
14, 773
15, 828
17, 138
17, 803
19, 090
19, 904
21, 240
21, 242
21, 278
21, 329
21, 607
21, 828
21, 822
21, 674
21, 806
22, 086
22, 395
22, 475
22, 792
22, 498
4
22, 692
4
22, 634

16, 814
17, 776
19, 152
20, 815
21, 675
22, 753
24, 643
25, 878
25, 226
25, 334
25, 421
25, 592
25, 965
25, 878
25, 997
25, 952
26, 285
26, 496
26, 430
26, 568
26, 621
26, 737

Source: Department oi Commerce.

21

MANUFACTURERS' SHIPMENTS, INVENTORIES, AND NEW ORDERS
Manufacturers' shipments and new orders (seasonally adjusted) declined in August while inventories were abou.
unchanged.
BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)
110

BILLIONS OF DOLLARS (SEASONALLY ADJUSTED)

MANUFACTURERS' SHIPMENTS

MANUFACTURERS' INVENTORIES
100

90

40

80

30

70

DURABLE GOODS

60

20

50

40

MANUFACTlJRERS'
30

_r

DURABLE GC)ODS
\

CORDERS

/S/S.

^

"'

'

—^"^""X/

>'"'•*-"V_

S*~

40

NONDURABLE GOODS

'" \

-NONDURAEiLE GOODS

20

10

NEW

rf ! f f ! I 1 t ! t 1 1
V

1968

1 i i ! i I } \ } ir

i i i r r 1 r i ii?

1969

1970

*-

30

1 1 T 1 t f ! 1 ! 1 iN

1971

20

^

1969

1968

SOURCE: DEPARTMENT OF COMMERCE

Total

35, 032
37, 335
41, 003
44, 863
46, 458
50, 287
53, 629
54, 429
55, 386
55, 644
55, 073
53, 235
52, 562
54, 464
Dec
55, 718
1971: Jan
56, 982
Feb
Mar_ _
57, 790
Apr
57, 680
58, 352
May
June _
58, 988
July p
58, 185
Aug
_ _ 57, 393

1963
1964
1965
1966
__ _ _
1967
1968
1969
1970
1970: July
Aug
Sept
Oct
Nov__

1
2 Monthly

NonDurable durable
goods
goods

18, 247
19, 634
22, 216
24, 629
25, 220
27, 695
29, 539
29, 349
30, 176
30, 483
29, 900
28, 152
27, 680
29, 185
30, 166
30, 856
31, 616
31, 308
31, 850
32, 650
31, 890
31, 175

16, 786
17, 701
18, 788
20, 233
21, 237
22, 592
24, 090
25, 080
25, 210
25, 161
25, 173
25, 083
24, 882
25, 279
25, 552
26, 126
26, 174
26, 372
26, 502
26, 338
26, 295
26, 218

Total

Millions
60, 043
63, 386
68, 221
77, 950
84, 563
90, 737
96, 673
100, 476
99, 164
99, 329
99, 576
100, 282
100, 927
100, 476
100, 878
100, 602
100, 502
100, 420
100, 647
100, 536
100, 194
100, 177

NonDurable durable
goods
goods
of dollars
35, 813
38, 436
42, 227
49, 793
54, 888
58, 969
63, 160
65, 152
64, 720
64, 913
64, 965
65, 218
65, 517
65, 152
65, 308
65, 090
65, 082
65, 033
65, 079
64, 825
64, 692
64, 630

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

22




1971
COUNCIL OF ECONOMIC ADVISERS

Manufac turers' shi pments 1 Manufac ,urers; inv entories2
Period

1970

Manufacturers' new orde rs i

Total

Durafc>le goods
NonProducers' durable
capital
Total
goods
goods
industries

seasonal y ad justed
24, 230 35, 322 18, 521
24, 950 37, 952 20, 258
25, 994 41, 803 22, 986
28, 157 45, 912 25, 690
29, 675 46, 707 25, 468
31, 768 50, 505 27, 919
33, 513 53, 768 29, 681
35, 324 53, 866 28, 778
34, 444 55, 272 30, 073
34, 416 54, 932 29, 748
34, 611 53, 567 28, 355
35, 064 51, 951 26, 779
35, 410 52, 463 27, 560
35, 324 55, 468 30, 140
35, 570 57, 255 31, 666
35, 512 57, 165 31, 071
35, 420 57, 699 31, 472
35, 387 56, 597 30, 228
35, 568 57, 028 30, 601
35, 711 57, 009 30, 666
35, 502 58, 022 31, 722
35, 547 57, 726 31, 502
Source: Department of Commerce.

3,412
3, 935
4, 435
5, 265
4, 958
5, 307
6, 074
5, 794
5, 898
5, 683
5, 614
5, 843
5, 871
5, 925
6, 442
6, 617
6, 219
5, 677
6, 193
6, 237
6, 146
6, 583

16, 801
17, 694
18, 817
20, 222
21, 239
22, 585
24, 087
25, 088
25, 199
25, 184
25, 212
25, 172
24, 903
25, 328
25, 589
26, 094
26, 227
26, 369
26, 427
26, 343
26, 300
26, 224 '

Manufacturers'
inventoryshipments
ratio 3

1. 69
1. 64
1. 60
1. 62
1. 76
1. 74
1.75
1. 82
1.79
1. 79
1. 81
1.88
1. 92
1.84
1.81
1. 77
1. 74
1. 74
1. 72
1. 70
1.72
1.75

MERCHANDISE EXPORTS AND IMPORTS
in August, the merchandise trade balance (seasonally adjusted) was in deficit for the fifth consecutive month. The
August deficit of $260 million was slightly less than the July deficit of $304 million.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

1.5

1.0

1.0

1971

1965
y SEE NOTE BELOW.
SOURCE: DEPARTMENT OF COMMERCE

Period

Monthly average:
1962
1963
1964
1965
1966
1967
1968
1969
1970
1970: July.
Aug_
Sept.
Oct__
Nov_
Dec1971: Jan.Feb..
Mar_
Apr _
MavJune_
JulvAug_.

COUNCIL OF ECONOMIC ADVISERS

[Millions of dollars]
!vlerchandi se export,s
Merch andise irnports
Total (includ-l
Domesti c exports
Gem3ral impc)rts 3
2
nig ree xports)
Food, Crude
Food, Crude
Total
bever- matebever- mate- Manu2
Season- Unad- Total »
facSeasonrials
ages,
rials
ages,
ally ad- justed
tured ally ad- Unad- and to- and
and to- and
fuels
justed, justed bacco
goodfuels
justed
bacco
1,
1,
2,
2,
2,
2,
2,
3,
3,

3, 704
3, 591
3, 553
3,688
3, 499
3, 569
3, 735
3, 690
3, 815
3, 522
3, 783
3,661
3,495
3, 678

748
869
153
229
458
586
839
111
555

3, 554
3, 264
3, 335
3, 916
3,494
3, 684
3, 482
3, 527
4, 108
3,807
3,914
3, 686
3, 340
3, 366

1, 725
J, X45
2, 123
2, 201
2, 421
2, 554
2, 802
3, 066
3, 502

312
349

:js«

377
4,32
392
383
370
422

U iiadjuste d
430
3,492
3, 215
405
3, 282
429
535
3, 843
513
3,445
485
3, 633
3, 434
439
403
3, 470
4, 059
455
3, 741
401
423
3,854
3, 625
395
3, 295
385
383
3, 319

280

;ur>
M6l
:>5(>
:u>7

394
405
417
558




339
191
377
453
602
737
985
232
445

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

366
428
562
7S(>
135
241
769
004
329

306
322
J35
]34
>82
392
447
442
519

391
396
419
453
476
447
503
533
545

637
672
759
937
204
313
719
918
159

382
441
590
444
323
345
70
107
226

2, 187
1, 965
2, 271
2, 384
2, 264
2, 265
2, 267
2, 163
2, 620
2, 612
2, 586
2, 897
2, 362
2,467

450
245
130
190
71
168
49
136
245

1,
1,
1,
1,
2,

Unad usled
545
528
536
629
574
667
554
537
596
578
550
544
468
515

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

3

1,
1,
1,
1,
1,
1,
1,
2,
2,

Grossmerchandise trade
Manu- surplus,
seasonfactured ally adjusted
goods

2, 426
2, 204
2, 243
2, 622
2, 293
2, 378
2, 351
2, 445
2, 937
2, 649
2, 792
2, 605
2, 364
2, 353

3, 254
3, 346
3, 4&3
3, 498
3, 428
3, 402
3, 686
3, 553
3,569
3, 758
3, 988
4, 023
3, 799
3,937

3,
3,
3,
3,
3,
3,
3,
3,
3,
3,
3,
4,
3,
3,

311
116
447
597
405
553
422
194
912
898
845
283
699
847

504
485
508
547
518
575
523
442
528
593
521
593
565
616

506
561
550
545
515
597
515
480
641
569
611
669
639
643

— 236
— 205
— 363
-304
— 260

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

23

U.S. BALANCES ON GOODS, SERVICES, AND TRANSFERS
Current estimates for the second quarter indicate a merchandise trade deficit of $4.2 billion (seasonally adjusted
annual rate), a deficit on goods and services of $0.1 billion, and a current account deficit of $3.5 billion.
BILLIONS OF DOLLARS
10

BILLIONS OF DOLLARS

1970

1965

1971
COUNCIL OF ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF COMMERCE

[Millions of dollars]
M erchandis<3 1 2

Period
Exports

1965
1966
1967_
1968
1969__.
1970

26, 438
29, 390
30, 680
33, 588
_ _ 36, 490
41, 980

Imports

— 21, 496
-25,463
-26, 821
-32, 964
-35, 830
-39, 870

Net
balance
4, 942
3,927
3, 859
624
660
2, 110

Milit£iry transactions

Nethivestment i ncome

Direct
expenditures

Sales

Net
balance

Private 3

U.S.
Government

Net
travel
and
transportation
expenditures

-2, 952
-3; 764
-4, 378
-4, 535
-4, 856
-4,851

830
829
1,240
1, 395
1, 515
1,480

-2, 122
-2, 935
-3, 138
— 3, 140
-3, 341
-3, 371

5, 274
5, 331
5, 848
6, 157
5, 820
6,360

20
44
40
63
155
-118

— 1, 319
- 1, 382
-1,752
-1, 558
- 1, 780
- 1, 979

Other
services,
net

Balance
on
goods
and
services 1

Remittances, Curpenrent
sions,
acand
other count
balunilateral ance
transfers 1
-2,835 4, 295
-2, 890 2,410
-3,081 2, 139
2, 875 — 386
-2,910 -899
-3, 149
444

333
315
365
344
497
588

7, 130
5, 300
5, 220
2,489
2, Oil
3, 592

504
456
588
532
628
600
848
688

2, 832 -2,772
2, 676 — 2, 996
3, 524 3, 024
4, 180 -3,012
3,980 -3, 212
2, 680 -3, 344
4, 588 3, 080
— 88 -3,368

Se<asonally a djusted annual nites

1969: I1I___ 38, 408
IV.... 39, 552
1970: I
40, 964
II
42, 328
III... 42, 784
IV
41, 844
1971: I
44, 120
II *>___ 42, 864
1
2
3

-37, 112 1, 296
- 37, 588 1,964
— 38, 912 2, 052
-39, 324 3, 004
-39, 968 2, 816
-41, 276
568
-43, 044 1,076
-47, 024 -4, 160

-4, 884 1, 768
-5, 004 1, 344
-4,728 1,096
-5, 020 1, 788
-4, 844 1, 308
-4, 812 1, 732
-4, 696 2, 028
-4, 880 2, 172

-3, 116
- 3, 660
-3, 632
— 3, 232
-3, 536
-3, 080
-2, 668
-2,708

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

24



5, 716
5, 672
6, 184
5,888
6, 540
6, 828
7,488
9,292

180
136
124
-12
-256
-324
-448
— 672

- 1, 748
— 1, 892
- 1, 792
-2, 000
— 2, 212
— 1, 912
- 1, 708
— 2, 528

Source: Department of Commerce.

60
-320
500
1, 168
768
-664
1, 508
-3,456

J.S. OVERALL BALANCES ON INTERNATIONAL TRANSACTIONS
In the second quarter there were balance of payments deficits of $23.0 billion on the net liquidity basis and $22.8
billion on the official reserve transactions basis (both seasonally adjusted annual rates).
BILLIONS OF DOLLARS
15

BILLIONS OF DOLLARS
15

BALANCE ON OFFICIAL
RESERVE TRANSACTIONS

BALANCE ON
CURRENT ACCOUNT
AND LONG-TERM
CAPITAL
1

-25

-25
1965

I

1966

1971

1967

NOTE: BEGINNING 1970 INCLUDES ALLOCATIONS OF SPECIAL DRAWING RIGHTS.
SOURCE: DEPARTMENT OF COMMERCE

COUNCIL OF ECONOMIC ADVISERS

[Millions of dollars]

Period

1965
1966
1967
1968
1969
1970

Long-ter tn capital Balance Nonliquid
flows , net
shortterm
account private
U.S.
2 and longcapital
Govern- Private
ment 1
capital flows
net 2
- 1, 532 -4, 577 -1, 814
- 1, 469 -2, 555 -1, 614
2,912 -3, 196
-2,424
-2, 162 1, 198 — 1, 349
-50 -2, 879
— 1, 930
— 2, 029 - 1, 453 -3, 038

-171
— 102
-505
231
602
-545

11

Allonf

special
drawing
rights

Errors
and
omissions,
net

-507
— 431
-985
-493
-2, 603
867 -1, 104

Changes
Balance, Liquid Balance, in lianet
private official
bilities
liquid- capital reserve
to
flows,
ity
transforeign
2
basis
net
official
actions
basis
agencies,
net 3
-2,493
-2, 148
-4, 685
-1, 610
-6,084
- 3, 821 -

-2, 816
-820
-1,812
-2, 360
-1, 248
-2, 692
-2, 720
-2, 524

1
2

- 1, 524 -4, 280 -840
2, 564
1, 424 -108
-3, 876 -5, 188 -460
-1, 088 — 2, 280 -560
-880 -1, 360 -460
28 -3, 328 — 700
— 4, 012 -5, 224- 1, 584
-6, 584— 12, 564 — 1, 816

868
868
868
864
720
716

- 2, 868 -7,984
5, 268 1 -2, 716
-664
652
884
1, 536
-236 -5, 016 -6,440 -11,456
- 1, 500 -3,472 — 2, 144 — 5, 616
— 1, 748 - 2, 700 — 5, 600 -8, 300
-932 -4, 096 -9, 816 -13, 912
— 4, 104 -10, 192 -11, 960-22, 152
- 9, 340-23, 004
180 -22,824

Excludes liabilities to foreign official reserve agencies.
Private foreigners exclude the IMF, but include other international and
xegional organizations.
s
Includes liabilities to foreign official agencies reported by U.S. Government
nd U.S. banks and U.S. liabilities to the IMF arising from reversible gold sales
3,4 and gold deposits with, the United States.
Official reserve assets include gold, special drawing rights, convertible cur.encies, and the U.S. gold tranche position in the IMF.




U.S.
official
reserve
assets,
net
(end of
period)

1, 204 - 1, 289
67
1, 222 15, 450
2, 367
219
-787
568 14, 882
1,267 -3,418
52 14, 830
3,366
3, 251
-761
1, 641
-880 5 15, 710
2, 702 -1, 515 -1, 187 16, 964
8, 786
7, 344
6, 000 -9,821
2,477 14, 487

Seiasonally adjusted annual rattes

1969: III.__
IV___
1970: I
II__
III...
IV_
1971: I
II »___

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

Unadjusted
5, 460 -2, 744 16, 743
-920
-616 16, 964
10, 400
1, 056 17, 350
2, 396
3, 220 16, 328
2,336 15, 527
5, 964
3, 296 14, 487
10, 616
19, 424
2, 728 14, 342
2, 636 6 13; 504
20, 188

5
Includes gain of $67 million resulting from revaluation of the German mark
in 0October 1969.
On June 30, U.S. reserve assets consisted of gold stock, $10,507 million, special
drawing rights, $1,247 million; convertible currencies, $322 million; gold tranche
position, $1,428 million.
Sources: Treasury Department and Department of Commerce.

25

PRICES

CONSUMER PRICES

In September, the consumer price index rose 0.2 percent; on a seasonally adjusted basis the rise was also 0.2 percent.
Prices of apparel commodities, household services, college tuition, and some other items increased, while food and
automobiles declined.
index, 1967 = 100

Index, 1967 =100

130

110

100

100

90

90

1965
SOURCE: DEPARTMENT OF LABOR

Period
1961
1962
1963
1964
_ _ _ ___
1965
1966
1967
1968
1969
1970
1970: Aug
Sept. __ _ ___ _ _ __
Oct__ __ _
_ ___ _
Nov__
_
_
Dec
1971: Jan
Feb
Mar__ ..
_
Apr.
_ _ _ _ _
May
June
__ __
July
Aug ....__
___
Sept
Source: Department of Labor.

26



COUNCIL OF ECONOMIC ADVISERS

All
items
89. 6
90.6
91. 7
92. 9
94. 5
97. 2
100. 0
104. 2
109. 8
116. 3
116. 9
117. 5
118. 1
118. 5
119. 1
119. 2
119. 4
119. 8
120. 2
120. 8
121. 5
121. 8
122. 2
122. 4

P1967 = 100]
Services
Co mmoditie 3
Comm odities lee s food
Services
All
All comRent
Food
less
Nonmodities
All
Durable durable services
rent
83. 9
92. 9
91. 2
85. 2
92. 0
89. 1
93. 4
96. 6
85. 5
94. 0
97. 6
91. 8
86. 8
89. 9
94. 1
92. 8
87. 3
92. 7
88. 5
95. 0
91. 2
97. 9
93.6
94. 8
89. 2
90. 2
93. 5
95. 9
94. 6
92. 4
98.8
95. 6
91. 5
92. 2
94. 8
96. 9
94. 4
96. 2
98. 4
95. 7
95. 8
95. 3
99. 1
97. 0
98. 2
98. 2
97. 5
98. 5
100. 0
100. 0
100. 0
100. 0
100. 0
100. 0
100. 0
100. 0
105. 7
104. 1
102. 4
105. 2
103. 7
103. 6
103. 7
103. 1
1 ] 2. ;1
105. 7
113. S
108. 8
108.4
107. 0
108. 9
108. 1
121. 6
110. 1
123. 7
112. 5
113. 1
111. 8
114. 9
113. 5
124. 9
122. 7
110. 5
113. 0
112. 2
115. 9
112. 6
113. 8
114. 1
123. 5
110. 9
125. 8
112. 5
114. 2
115. 7
113. 4
124. 1
111. 4
114. 9
126. 5
114. 5
114. 8
115. 5
113. 9
124. 9
127. 3
111. 8
114. 7
115. 4
114. 9
115. 1
115. 1
112. 6
128. 0
115.7
125. 6
115.3
115.5
115. 2
115. 6
112. 9
126. 3
128. 7
115. 3
115. 5
115. 2
115. 2
115. 4
129. 0
113. 6
115. 4
126. 6
115. 0
115. 9
115. 2
115. 5
126. 6
113. 9
128. 9
115. 7
117. 0
115. 2
115. 5
116. 1
114. 4
129. 1
126. 8
116. 0
117. 8
115. 7
116. 6
115. 8
114. 7
129. 8
116. 6
127. 5
116. 6
116. 6
117.2
118. 2
115. 2
130. 6
128. 2
117. 1
116. 9
117. 4
119. 2
117. 9
131. 2
115. 4
116. 7
128. 8
117. 0
117. 5
119. 8
118. 1
129. 4
115. 8
131. 9
117. 2
117. 3
117. 4
120. 0
118. 3
132. 4
116. 1
129. 9
118. 2
117. 2
119. 1
117.8
118. 3

WHOLESALE PRICES
The wholesale price index declined 0.3 percent in September/ seasonally adjusted the decrease was 0.4 percent.
The seasonally adjusted decline was the first since November 1970 and the largest since October 1966. Industrial
commodity prices declined 0.1 percent on both an unadjusted and a seasonally adjusted basis.
Index, 1967=100

Index, 1967 = 100

100

/--*

95

1965
SOURCE:

1971

DEPARTMENT OF LABOR

COUNCIL OF ECONOMIC ADVISERS

[1967=100]
All
commodities

Period

1961
1962
1963
1964
1965
1966
1967
1968
1969
1970_
_ _ _ _ _ _ _ _ _ _ _
1970: Aug. _ _ _ _ _ _
Sept
Oct
Nov

Dec
1971: Jan__.
Feb
Mar
Apr ___
Mav

June.
July
Aug.
Sept

_ _

94. 5
94. 8
94. 5
94. 7
96. 6
99. 8
100. 0
102. 5
106. 5
110. 4
110. 5
111. 0
111. 0
110. 9
111. 0
111. 8
112. 8
113. 0
113. 3
113. 8
114. 3
114. 6
114. 9
114. 5

Farm
products

All industrials 1

Crude
materials

96. 3
98. 0
96. 0
94. 6
98. 7
105. 9
100. 0
102. 5
108. 8
111. 0
108. 5
112. 1
107. 8
107. 0
107. 1
108. 9
113. 9
113. 0
113. 0
114. 0
116. 0
113. 4
113. 2
110. 5

91. 0
91. 9
92. 5
92. 3
95. 5
101. 2
100. 0
102. 2
107. 3
112. 0
112. 9
113. 0
111. 8
111. 7
110. 7
111. 8
113. 3
113. 7
113. 5
114. 5
114. 9
116. 0
115. 4
114. 6

94. 8
94. 8
94. 7
95. 2
96. 4
98. 5
100. 0
102. 5
106. 0
110. 0
110. 2
110. 4
111. 3
111. 3
111. 7
112. 2
112. 5
112. 8
113. 3
113. 7
113. 9
114. 5
115. 1
115. 0

97. 2
95. 6
94. 3
97. 1
100. 9
104. 5
100. 0
102. 0
110. 5
118. 8
117. 2
118. 7
120. 6
118. 2
119. 8
121. 4
121. 8
121. 4
124. 1
123. 5
122. 8
122. 7
122. 3
123. 0

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




Iridustrial c ommoditi es

Processed
foods
and
feeds

Inter- Producmediate er finmateished
rials 2
goods
95. 5
95. 3
95. 0
95. 6
96. 9
98. 9
100. 0
102. 6
106. 2
110. 0
110. 5
110. 7
111. 0
111. 0
111. 0
111. 5
112. 0
112. 7
113. 3
113. 8
114. 1
114. 9
115. 9
115. 9

91. 8
92. 2
92. 4
93. 3
94. 4
96. 8
100. 0
103. 5
106. 9
111. 9
111. 9
112. 3
113. 8
114. 2
115. 1
115. 6
115. 9
116. 0
116. 1
116. 3
116. 5
116. 8
117. 1
116. 9

Consurner finished g<Dods excludin g food
NonDurdurable
able
98. 8
94. 7
98. 3
94. 8
97. 8
95. 1
98. 2
94. 8
97. 9
95. 9
98. 5
97. 8
100. 0
100. 0
102. 2
102. 2
104. 0
104. 8
107. 1
108. 2
106. 5
108. 6
106. 6
109. 0
109. 7
109. 2
109. 9
109. 5
109. 9
110. 4
110. 5
110. 9
110. 8
110. 8
110. 4
110. 7
110. 5
110. 5
110. 7
111. 0
110. 7
111. 2
111. 0
111. 6
111. 1
111. 8
110.4
111. 9

NOTE.—Beginning 1967, the indexes incorporate a revised weighting structure
reflecting 1963 values of shipments. The classification structure also changed.
Source: Department of Labor.
p*7

PRICES RECEIVED AND PAID BY FARMERS
In the month ended September 1 5, prices received by farmers dropped 2 percent while prices paid rose 1 percent.
Both the adjusted and unadjusted parity ratios declined.
1967 = = 100

1967 = 100

130

130

120

1OA

S~*
PR CES PAID,

f**S\
f

V

L7^

^m*m***

>,""%^

w

f~**&

— \ PRICIES RECEIVE D
(ALL FA RM PRODU CTS)

100

90

, . ! . . , . ,

80

. . . . . 1 ..

80

RA1 10-^
90

80

RATI DJ/

90

^*««ii?

^ "m%X

PARITY RATI ">

**,
•V,

X-*

X

. m« ,
, i »
"»«..„<»

80

\

vwix.....,^"'^v'''*..„..V"*'/ "X^*""'

70

\.«A"'%
*»^

'v

*0

110

^

^

«*(-

on

\

~sf ^c^ ^A^- ^m
\/
.-** \r^< ^J
v.

no

100

.mmmmmwm

1NTERES T, TAXES, AND
W>\GE RATES

..... i.....

!

, . . . ! , ,

1965

, , ,

1 1 t

1966

1 1 , .

,

.I/RATIO OF INDEX OF PRICES

RECEIVED TO INDEX OF PRIC

SOURCE: DEPARTMENT OF AC

. ,,i,,,..

, , , , , ! , ,
1968

1967

, INTEREST, TAXES, /> NDWAGE RATES, ON

910-14 ==

All farm
farm
nrodur,ts
products

Period

Crops

70

'

60

100BASE.

All items,
items,
in terest,
interest,
tax PS. fl.nd
taxes, and
wage rates

Family
Family
livingT
living
items

OF ECONOMIC

ADViSEPC

Parity ratio i

Prices paid by far mers

Livestock
and
products

*

1971

cou NCIL

Pr ices i•eceived by i armers

,,^ „.„,.. ,,^

, , , . . ! .

1970

1969

RICUITURE

IES PAID

•j^

ProducProduction
items

Actual

Adjiisted
Ad jus tec 2

Index, 1967=100
1961__

1962
1963
. . _ _ __
.
1964
1965_ _
1966 _
1967 __ _ _ _
1968
1969
1970_
1970: Aug 15
Sept 15

Oct
Nov
Dec
1971: Jan
Feb
Mar
Apr

15
15__ __
15
15
15
1..
5.
15

Mav 15-..June 15
July 15

Aug 15
Sept 15

_
_

__ _

94
96
96
93
98
105
100
103
108
110
109
110
108
106
104
106
112
111
111
113
113
113
113
111

100
103
106
106
103
105
100
101
97
100
100
104
102
102
99
102
105
107
108
111
114
111
108
104

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

28



91
92
89
85
94
105
100
104
116
118
115
116
113
109
108
110
117
114
114
114
113
114
117
117

88
90
91
92
94
98
100
104
109
114
114
115
115
115
116
117
118
118
119
120
120
120
120
121

90
91
92
93
95
98
100
104
109
114
114
115
115
115
116
116
117
117
117
118
119
119
120
120

93
94
95
94
96
99
100
102
106
110
109
111
111
111
112
112
113
114
115
115
116
116
116
116

79
80
78
76
77
80
74
73
74
72
71
71
70
68
66
68
70
70
69
70
70
70
70
68

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

83
83
81
80
82
86
79
79
79
77
76
77
75
74
72
72
75
74
74
74
75
74
74
73

MONEY, CREDIT, AND SECURITY MARKETS
MONEY STOCK
The seasonally adjusted money stock declined in September making it virtually unchanged from the July level. It
had increased at a 10.5 percent seasonally adjusted annual rate from December to July.
BILLIONS OF DOLLARS
300

BILLIONS OF DOLLARS
300

250

250

200

200

100
1965

SOURCE:

1971
COUNCIL OF ECONOMIC ADVISERS

BOARD OF GOVERNORS OF THE fEDERAt RESERVE SYSTEM

[Averages of daily figures, billions of dollars]
1
JVloney sto sk
]Vloney sto(3k
CurCurTime
Time
DeDerency
rency
dede- 1
mand
mand
outTotal
outTotal
posits 1
posits
dedeside
side
posits
banks posits
banks

Period

1965:
1966:
1967:
1968:
1969:
1970:
1970:

Dec
Dec
Dec
Dec
Dec
Dec >
Aug
Sept
O c t
Nov
Dec .
1971: Jan

_ _

_

_ __ _ _
__ . _

_ _ _ _ _ _ _
_
___
_ ___

Feb
Mar___
Apr
May.
_
June
July
Aug-fa___
Sept*__

_ _ _
___ ___
_
__

_ _
__

_

168. 0
171. 7
183. 1
197. 4
203. 6
214. 6
211. 8
212. 8
213. 0
213. 5
214. 6
214.8
217. 3
219. 4
221. 1
223. 9
225. G
227. 5
228. 0
227. 3

Seasonall}7
36. 3
38. 3
40. 4
43. 4
46. 0
48. 9
48. 2
48. 2
48. 5
48. 7
48. 9
49. 2
49. 6
50. 0
50. 5
50. 9
51. 2
51. 7
51. 8
52. 0

adjusted
131. 7
133.4
142. 7
154. 0
157. 7
165.7
163. 7
164. 6
164. 5
164. 8
165. 7
165. 5
167. 7
169. 4
170. .5
173. 0
174. 4
175. 8
176. 2
175. 3

1
Deposits at all commercial banks.
NOTE.—Effective June 9, 1966, balances accumulated for payment of personal
jans (about $1.1 billion) are excluded from time deposits and from loans at all
commercial banks.




146. 8
158. 3
183. 5
204. 8
194. 6
230. 4
213. 2
218. 5
222. 2
225. 0
230. 4
235. 3
240. 9
246. 1
248. 3
251. 4
254. 4
256. 8
258. 2
261. 6

173. 1
176. 9
188. 6
203. 4
209. 8
221. 1
208. 7
211. 4
213. 0
215. 3
221. 1
221. 3
215. 5
217.4
222. 2
219. 7
223. 6
225. 8
224. 7
225. 7

37. 1
39. 1
41. 2
44. 3
46. 9
50. 0
48. 3
48. 2
48. 5
49. 2
50. 0
49. 1
49. 2
49. 5
50. 1
50. 5
51. 1
51. 9
51. 9
52. 0

Jnadj uste d
136. 0
137. 8
147. 4
159. 1
162. 9
171. 1
160. 4
163. 1
164. 5
166. 1
171. 1
172. 1
166. 3
167. 8
172. 1
169. 2
172. 5
173. 8
172. 7
173. 8

145.2
156. 9
182. 1
203. 2
193. 2
228. 7 j
214. 0 1
218. 4
222. 5
224. 6
228. 7
234. 5
240. 3
246. 9
249. 2
252. 1
254. 4
256. 4
259. 1
261.4

U.S.
Government
demand
deposits *
4. 6
3. 4
5. 0
5. 0
5. 6
7.1
7.1
6. 8
6. 1
5. 6
7. 1
6. 6
8. 3
5. 4
5. 5
7.8

5. 4
6. 8
6.8

7. 4

Source: Board of Governors of the Federal Keserve System.

29

SELECTED LIQUID ASSETS HELD BY THE PUBLIC
Public holdings of selected liquid assets (seasonally adjusted) rose almost $10 billion in September. Time deposits
and savings and loan shares again accounted for most of the rise. Demand deposits and currency declined sightly.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

850

850
SEASONALLY ADJUSTED, END OF MONTH

750

750
TOTAL SELECTED
LIQUID ASSETS

650

650

550

550

SAVING TYPE
ASSETSJ/

\--T--

450

450

350

350

250

250
DEMAND DEPOSITS AND
CURRENCY \
>..«..
... !.<

1.1Ti

150

1965

! I I 1 I I I 1. I

1966

150

M

1967

1968

1971

1970

1969

I/ASSETS OTHER THAN DEMAND DEPOSITS AND CURRENCY.
SOURCEs BOARD OF GOVERNORS OF THE FEDERAL RESERVE .

COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars, seasonally adjusted]

U.S. Gov-

Time d eposits
Total
selected
liquid
assets

End of period

1964
1965
1966
1967_
1968
1969
1970
1970: A u g . __

530.5

573. 1
601.5
650.4

709.
731.
786.
751.
765.
764.
774.

Sept_

Get
Nov
Dec
1971: Jan
Feb
Mar
Apr
May

....

Aug
Sept

786.4

__ _

June
July

_
v

6
8
4
1
6
9
1

_ _

_ _

789.
796.
816.
815.
825.
835.
835.
841.
850.

2
9
1
8
1
5
3
1
9

Demand
deposits

and

currency l

156. 7
164. 1
168. 6
180. 7
3
199. 2
206. 8
207. 6
199. 3
203. 6
199.8
201. 5
207. 6
202. 9
204. 6
211. 6
206. 3
212. 5
218.4
213. 8
215. 0
214. 4

Com-

127. 1
147. 1
159.3
183. 1
203. 8
197. 1
234. 8
215.4
221. 5
224. 6
230.4
234.8
240.0

244. 5
249. 5
250. 2
252. 3
254. 7
256. 5
258.2
263.5

1
Agrees in concept with money stock, p. 29, except for deduction of demand
deposits held by mutual savings banks and savings and loan associations. Data
for last Wednesday of month. Data prior to July 1969 have not been revised to
conform to the money stock revision.

30



Mutual
savings
banks

mercial
banks

49. 0
52.6
55.2
60. 3
64.7
67. 3
71. 5
69. 4
69. 9
70.4
70. 9
71.5
72. 2
73. 5
74. 7
75.9
76.8
77.6
78. 3
78.6
78.9

Postal
Savings
System

Savings
and loan
deposits

and
shares

U.S. Government
savings
bonds 2

ernment
securities
maturing
within

one 3

year

0.4
.3
.1

101. 4
109.8
113.4
123. 9
131.0
135. 0
146. 0
140. 3
142. 4
143. 5
144. 8
146. 0
148. 7
151. 6
155. 7
158. 4
160. 2
161. 9
164. 7
166.5
169.4

49. 9
50.5
50.9
51. 9
52.5
52. 4
52. 7
52. 0
52. 1
52. 1
52. 2
52. 7
52. 8
52. 8
53. 0
53. 2
53.4
53. 6
53. 8
54. 0
54. 2

46. 1
48. 6
53. 9
50. 5
58.5
73. 2
73. 8
74. 6
76. 0
74. 5
74. 3
73. 8
72. 6
70. 0
71. 6
71. 8
69. 9
69. 5
68. 2
68. 8
70. 3

2
Excludes holdings of Government agencies and trust funds, domestic COTJ^
mercial and mutual savings banks, Federal Reserve Banks, and beginn/
February 1960, savings and loan associations.
\
s Estimates for Dec. 31.
NOTE.—See Note. p. 29.
Source: Board of Governors of the Federal Reserve System.

feANK LOANS, INVESTMENTS, DEBITS, AND RESERVES
Total commercial bank loans and investments rose $3.6 billion (seasonally adjusted) in September following a larger
increase in August. Net borrowed reserves fell sharply in September to $253 million.
BILLIONS OF DOLLARS
500

BILLIONS OF DOLLARS
500
SEASONALLY ADJUSTED, END OF MONTH

ALL COMMERCIAL BANKS

400

400

TOTAL
LOANS AND INVESTMENTS

300

INVESTMENTS IN
U.S. GOVERNMENT SECURITIES

100

INVESTMENTS IN OTHER SECURITIES
: I I I I I I I

I ! I I 1 I ! ! 1 I I

MM

1965
*SEE FOOTNOTE 4 BELOW
SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Bank
Weekly
J U..;.!.
debits
reporting
large com- outside
mercial New York
Total
Investrnents
City (232
banks
Loans,
loans excluding
centers) ,
and
seasonally
inter- U.S. Gov- Other Commercial adjusted
investsecuri- and indus- annual
bank
ernment
ments
securities
ties
trial loans
rates 1
Billions of dollars5
3
192. 6
294. 4
S,01S
57. 1
44. 8
53. 1
310. 5
208.2
48.7
8,421
60.7
53. 6
346. 5
225. 4
8, 740
59. 7
65. 8
61. 4
384.6
251.6
61.5
71.5
73.1
4,854
401. 3
51. 9
71. 3
5, 163
278. 1
81. 5
290. 5
435. 1
86. 0
81.7
58. 5
5, 744
5, 780
418. 3
284. 1
57. 5
76.7
79. 2
423. 7
287. 3
5, 884
57. 6
78. 8
81. 2
424. 4
287. 3
80. 8
5, 881
56. 3
80. 0
5, 710
428. 2
288. 4
79. 9
56. 7
83. 1
290. 5
435. 1
86. 0
5, 880
58. 5
81. 7
292. 0
5,863
438. 9
88. 2
80. 1
58. 7
444. 6
6,032
295. 2
80. 8
59. 9
89. 6
92. 0
6, 116
295. 2
61. 4
81. 2
448. 6
60. 2
6, 302
449. 2
93. 7
81. 2
295. 4
453. 9 5 298. 9
81. 6
60. 0
6,215
95. 0
5
82. 5
6,613
299. 2
62. 9
96. 6
458. 7
461. 3
97. 9
301. 7
61. 8
81. 8
6, 619
82. 6
97. 6
466. 5
307. 4
61. 6
6, 662
99. 0
470. 1
310. 4
60. 7
83.7

AJl membe r banks 2

All comiinercial bank s
(s easonally adjusted daita)

End of period

1965
1966
1967
1968
1969 *
1970
1970: Aug
Sept
Oct____
Nov
Dec-_
1971: Jan
Feb
Mar_
Apr

Mav__
June
July13 _ _

An 2; **
Sept » ___ _

1
Debits during period to demand deposit accounts except interbank and
I.S. Government. New series beginning January 1964.
2
Averages of daily figures. Annual data are for December.
'New series; see Federal Reserve Bulletin, March 1967.
*New series beginning June 1969; see Federal Reserve Bulletin, August 1969.
5
As of June 1971, Fanners Home Administration notes totaling about $0.7
"billion are classified as "other securities" rather than as "loans."
T




Total
reserves

22, 719
23, 830
25, 260
27, 221
28, 031
29, 265
28, 349
28, 825
28, 701
28, 558
29, 265
30, 488
29, 880
29, 686
29, 885
30, 419
30, 023
30, 547
30, 455
30, 840

Borrowings at
Free
Excess Federal
reserves Reserve reserves
Banks
Millions o f dollars
452
454
392
557
238
345
455
765
257
1, 086
321
272
145
827
272
607
254
462
120
425
272
321
279
370
328
201
199
319
140
148
312
330
453
131
162
820
804
198
248
501

-2

-165

107

-310
-829

-49

-682
-335
-208
-305
-49
Q1
«7 J.

-127
-120
-8
-18

-322
-658
-606
-253

NOTE.—Effective June 1966, balances accumulated for payment of personal
loans (about $1.1 billion) are excluded from loans at all commercial banks, and
certain certificates of CCC and Export-Import Bank totaling about $1 billion are
included in other securities rather than in loans.
Source: Board of Governors of the Federal Reserve System.

31

CONSUMER AND REAL ESTATE CREDIT
Total consumer credit rose by $1.4 billion in August. A year earlier the increase was about $1/2 billion. Consumer
instalment credit (seasonally adjusted) rose by $830 million in August.
BILLIONS OF DOLLARS
140

BILLIONS OF DOLLARS
140

END OF MONTH

120

120

TOTAL CONSUMER CREDIT OUTSTANDING.

100

100

—-\

INSTALMENT CREDIT

80

80

60

60
NONINSTALMENT

CREDIT

20

20

1965

1971
COUNCIL OF ECONOMIC ADVISERS

SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

[Millions of dollars]
Consum er instalme nt credit e xtended
Consi mer credit outstandirig (end of t>eriod;
\jnad justed
and r epaid (seasonally adjtisted)
Instalment
Automot>ile paper
To tal
—
NonTotal
instal- Extended Repaid Extended Repaid
Total ]
bile
Personal
ment 2
paper
loans

Period

1962
1963
1964_
1965
1966
__
1967
1968
1969
1970
1970: Julv
Aug...
Sept
Oct __
Nov
Dec

63, 821
71, 739
80, 268
90, 314
_ 97, 543
102, 132
113, 191
122, 469
126, 802
123, 092
_ 123, 655
123, 907
_ 123, 866
123, 915
126, 802

48, 720
55, 486
62, 692
71, 324
77, 539
80, 926
89, 890
98, 169
101, 161
99, 302
99, 860
100, 142
99, 959
99, 790
101, 161

19, 381
22, 254
24, 934
28, 619
30, 556
30, 724
34. 130
36, 602
35, 490
36, 918
36, 908
36, 738
36, 518
36, Oil
35, 490

13, 414
15, 618
17, 848
20, 412
22, 187
24, 018
26, 936
29, 918
31, 612
30, 765
31, 047
31, 226
31, 163
31, 268
31, 612

15, 101
16, 253
17, 576
18, 990
20, 004
21, 206
23, 301
24, 300
25, 641
23, 790
23, 795
23, 765
23, 907
24, 125
25, 641

56, 191
63, 591
70, 670
78, 586
82, 335
84, 693
97, 053
102, 888
104, 130
9, 065
8,809
8,849
8, 580
8,414
8, 536

51, 360
56, 825
63, 470
69, 957
76, 120
81, 306
88, 089
94, 609
101, 138
8, 622
8, 577
8,490
8, 662
8, 716
8, 515

19, 694
22, 126
24, 046
27, 227
27, 341
26, 667
31, 424
32, 354
29, 831
2, 685
2, 537
2, 621
2, 349
2, 127
2, 170

17, 447
19, 254
21, 369
23, 543
25, 404
26, 499
28, 018
29, 882
30, 943
2, 752
2, 632
2, 599
2, 550
2,577
2,618

1971: Jan
125, 077
Feb
123, 815
Mar
123, 604
Apr__
125, 047
126, 025
May
June _ _ 127, 388
128, 354
Julv
Aug _
129, 704

100, 101
99, 244
99, 168
100, 028
100, 692
101, 862
102, 848
104, 060

35, 004
34, 869
35, 028
35, 496
35, 819
36, 349
36, 763
37, 154

31, 455
31, 396
31, 504
31, 773
32, 041
32, 351
32, 680
33, 134

24, 976
24, 571
24, 436
25, 019
25, 333
25, 526
25, 506
25, 644

8,916
9, 081
9,533
9, 751
9,690
9,715
9, 675
10, 049

8, 829
8, 979
9,038
9, 088
9, 197
9, 190
8, 914
9, 222

2,461
2,687
2, 897
2, 872
2,756
2,838
2,773
3,004

2,623
2, 636
2, 696
2, 566
2, 640
2,678
2,565
2,697

1
Also includes other consumer goods paper, and repair and modernization
1 oans, not shown separately.
2
Consists of single-payment loans, charge accounts, and service credit.
3
End of period, unadjusted.

32



Mortgage
debt outstanding
n on farm,
1- to 4family
houses 3

166, 500
182, 200
197, 600
212, 900
223, 600
236, 100
251, 200
266, 800
280, 200
276, 000
280, 200

283, 500
290, 000

Sources: Board of Governors of the Federal Reserve System and Federal Home
Loan Bank Board.

OND YIELDS AND INTEREST RATES
Most interest rates drifted upward in mid-September but resumed their downward drift in late September and early
October.
PERCENT PER ANNUM
10

PERCENT PER ANNUM
10

PRIME
COMMERCIAL

CORPORATE Aaa BONDS
(MOODY'S)

TAXABLE GOVERNMENT
BONDS

TREASURY BILLS

1965
SOURCE:

1966

1970

1969

1968

SEE TABLE BELOW

Period

1963
1964
1965
1966___
1967
1968___
1969
1970
1970: Alia;
Sept.
Oct
Nov
Dec _
1971: Jan
Feb
Mar
Apr. _ _ _
May

June_ _
July
Aug

Sept
Week ended :
1971: Sept 10. _i
37__!
24..
Oct 1__

s__;

i5__;

22

'

COUNCIL OF ECONOMIC ADVISERS

[Percent per annum]
High-grade
U.S. Govejrnment secuirity yields
municipal
3-month
bonds
3—5 year
Taxable
2
Treasury
3
(Standard 4 &
issues
bonds
bills »
Poor's)
3. 157
4. 00
3. 72
3. 23
3. 549
4. 15
3. 22
4. 06
:]. 954
4. 21
4. 22
3. 27
4. 881
4. 65
3. 82
5. 16
4, 321
4. 85
3. 98
5.07
5. 339
5.59
5.26
4.51
6. 677
6. 12
6. 85
5. 81
6. 458
6. 58
7. 37
6. 51
6. 412
7. 56
6. 75
6.33
6. 244
7. 24
6. 63
6. 45
5. 927
7. 06
6. 59
6. 55
5. 288
6. 24
6. 37
6. 20
4. 860
5. 97
5. 86
5. 71
4. 494
5. 72
5. 92
5. 70
3. 773
5. 84
5. 55
5. 31
3. 323
4. 74
5.71
5. 44
3. 780
5. 42
5. 75
5. 65
4. 139
6. 14
6. 02
5. 96
4. 699
6. 36
5. 94
6. 22
5. 405
6. 77
5. 91
6. 31
5. 078
5. 78
6. 39
5. 95
4. 668
5.52
5. 96
5. 56
4. 538
4. 834
4.743
4. 676
4. 534
4. 486
4. 494

5. 94
6.00
6. 01
5. 91
5. 84
5. 68

1
2
Rate on new issues within period.
Selected note and
s
April 1953 to date, bonds due or callable 10 years and after.
4
Weekly data are Wednesday figures.
5

5. 51
5. 59
5. 59
5. 52
5. 47
5.44
bond issues.

Data for first of the month, based on the maximum permissible interest rate
<7percent beginning February 17, 1971) and 30-year mortgages paid in 15 years.




1971

5. 45
5. 57
5. 65
5. 43
5. 37
5. 19

Corpora be bonds
(Moo dy's)
Aaa

Baa

4. 26
4. 40
4.49
5. 13
5. 51
6. 18
7. 03
8. 04
8. 13
8. 09
8. 03
8. 05
7. 64
7. 36
7. 08
7. 21
7. 25
7.53
7. 64
7. 64
7. 59
7. 44

4. 86
4. 83
4.87
5. 67
6. 23
6.94
7. 81
9. 11
9. 44
9. 39
9. 33
9. 38
9. 12
8. 74
8. 39
8.46
8. 45
8. 62
8. 75
8. 76
8. 76
8.59

7. 42
7. 44
7. 44
7. 46
7. 44
7. 42

8. 62
8.63
8. 57
8. 52
8. 49
8. 48

Prime
FHA
commercial new home
paper,
mortgage
4-6
yields 5
months
5.47
3. 55
5. 45
3. 97
5. 46
4.38
6. 29
5.55
6. 55
5. 10
7. 13
5.90
7. 83
8. 19
7. 72
9. 05
7. 90
9. 11
7. 32
9. 07
6. 85
9. 01
8. 97
6. 30
5. 73
8. 90
5. 11
8. 40
4. 47
4. 19
7. 32
4. 57
7. 37
5. 10
5. 45
7. 75
5. 75
7. 89
5. 73
7. 97
7.92
5. 75
5. 75
5. 75
5. 75
5. 75
5. 75
5. 63

Sources: Treasury Department, Board of Governors of the Federal Reserve
System, Federal Housing Administration, Standard & Poor's Corporation, and
Moody's Investors Service.

33

COMMON STOCK PRICES, YIELD, AND EARNINGS
Common stock prices rose in early September and declined during the latter part of the month.
index, 1941-43=10

index, 1941-43=10
WEEKLY
120

120

110

110

COMPOSITE PRICE INDEX FOR
500 COMMON STOCKS

100

100

90

90

80

80

vy

60 I l I 1 I I h 1 I I I I t I 1 1 I I I I ! 1 I I ! I I M
PERCENT

I f M ! I I M

1I 1 I I M

I 1I I I I I I l l I M

I I I I M I (l

M I I I I I I M I 1 1 1 I I I 60
PERCENT

MONTHLY

- DIVIDEND YIELD ON COMMON STOCKS -

3

2
RATIO
25

RATIO

PRICE/EARNINGS RATIO ON COMMCDN STOCKS
\

A

1

I

20

\

\^--—-

/
1

I

1965

1
1966

I

—
f

f

^
!

1967

f

--—-^.

'^--^--

*•*—•—•—"

f

15
!

I

1969

1968

?

!

1970

SOURCE: STANDARD & POOR'S CORPORATION

Total

1965
1966
1967___
1968
1969
1970 _ _
__ _ _
1970: Sept
Oct_
N ov
Dec
1971: Jan
Feb
Mar
Apr.
Ma}-7
June_
Jiuy

Aug
__ _
Sept_ _
Week ended :
1971: Sept 10
17
Oct

24

1
8

15

_

_

__
_

__




!

N

10

N

Total

88.17
85. 26
91.93
98.70
97.84
83. 22
82. 58
84. 37
84. 28
90. 05
93. 49
97. 11
99. 60
103. 04
101. 64
99. 72
99. 00
97. 24
99. 40

93.48
91. 08
99. 18
107. 49
107. 13
91. 29
90. 66
92. 85
92. 58
98. 72
102. 22
106. 62
109. 59
113. 68
112. 41
110. 26
109. 09
107. 26
109. 85

100. 93
99. 76
98.80
98. 13
99. 50
98. 74

111. 51
110. 22
109. 21
108. 50
109. 88
108. 84

l

Capital Consumers'
goods
goods
1941-;13 = 10
85. 26
si. 94
84. 86
74. 10
96. 96
79. 18
105. 77
86.33
103. 75
87. 06
80. 22
87. 87
84. 96
79. 65
82. 12
87. 90
86. 47
83. 09
92. 12
88. 69
95. 97
91. 72
101. 58
95. 38
104. 69
98. 54
109. 38
102. 41
108. 61
101. 96
105. 46
100. 96
102. 48
100. 55
100. 90
99. 82
104. 55
103. 34

107. 06
104. 57
103. 91
102. 67
104. 48
103. 12

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

34

|

1971

COUNCIL OF ECONOMIC ADVISERS

Price index
Industrials

Period

J

104. 71
104. 04
102. 84
102. 30
104. 17
103. 22

Railroads

Dividend
yield 2
(percent)

76.08
68. 21
68. 10
66.42
62. 64
54. 48
54. 44
53. 37
54. 86
59. 96
63. 43
62. 49
62. 42
62. 06
59. 20
57. 90
60. 08
57. 51
56. 48

46.78
46. 34
46. 72
48.84
45. 95
32. 13
29. 14
31. 73
30. 80
32. 95
36. 64
38. 78
39. 70
42. 29
42.05
42. 12
42. 05
43. 55
47. 18

3.00
3. 40
3. 20
3.07
3. 24
3. 83
3. 82
3. 74
3. 72
3. 46
3. 32
3. 18
3. 10
2. 99
3.04
3. 10
3. 13
3. 18
3. 09

57. 46
56. 84
55. 95
55. 65
57. 37
58. 41

48. 22
47. 51
47. 08
45. 83
46. 50
45. 58

Price/
earnings
ratio 3

3. 03
3. 07
3. 11
3. 13
3. 07
3. 09

Public
utilities

17. 08
14. 92
17. 52
17.20
16. 57
15. 91
15. 77
17. 22
18. 11

17.31

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

FEDERAL FINANCE
FEDERAL BUDGET RECEIPTS, EXPENDITURES, AND NET LENDING
In the first 2 months of the current fiscal year there was a deficit of $9.3 billion/ a year earlier there was a deficit of
$9.0 billion.
BILLIONS OF DOLLARS
240

BILLIONS OF DOLLARS
240

200

200 -

OUTLAYS
(EXPENDITURES AND NET LENDING)

1961

1962

1963

1964

1965

1966

1967

1968

1971

1969

1972

FISCAL YEARS
COUNCIL OF ECONOMIC ADVISERS

SOURCES: TREASURY DEPARTMENT AND OFFICE OF MANAGEMENT AND BUDGET

[Billions of dollars]
B udget receipts, expenditures, and net lendii^g

Period

Receipts
Fiscal year:

Fedenil debt
(end of period)
Total 1

Held by
the public

1.2
3.8

292. 9
303. 3
310.8
316.8
323. 2
329. 5
341.3
369. 8
367. 1
382. 6
409. 5

238.6
248.4
254. 5
257.6
261. 6
264.7
267. 5
290. 6
279.5
284.9
304. 3

.0

-9. 0
-9. 3

392. 5
425. 0

293. 6
315. 4

27. 8
28.8

36. 8
37.8

— 9. 0

-8.9

Total
surplus or
deficit (-)

-3. 4
— 7.1
-4. 8
-5.9
-1.6
-3.8
-8.7
-25. 2
3. 2
-2. 8
— 23. 2

1.2

187.8
193. 7
188. 3

Excludes non-interest-bearing public debt securities held by IMF.
'* Surplus of $36 million.




Net
lending

5. 1
6. 0
1. 5
2. 1
.9

1970
1971 *>__

1

Surplus or
deficit ( — )
-2.2
-4.8
-4. 9
-5. 4
—. 3
(2)
-3. 6
-19. 1
4. 7
-.7
-22. 3

94. 4
99. 7
106. 6
112. 7
116. 8
130. 9
149. 6
153. 7

Cumulative totals for
first 2 months:
Fiscal year 1971_ __
Fiscal year 1972

Expenditures
96. 6
104. 5
111. 5
118. 0
117. 2
130. 8
153. 2
172. 8
183. 1
194.5
210. 7

1961
1962
1963 _
1964
1965
1966
1967
1968

1969___

Loan
account

Receip :-expenditure iiccount

2. 4
i
.5

.4

Sources: Treasury Department and Office of Management and Budget.

35

FEDERAL BUDGET RECEIPTS BY SOURCE AND
OUTLAYS BY FUNCTION
In the first 2 months of the current fiscal year receipts were $1.0 billion above a year earlier while outlays were $1.3
billion higher.
BILLIONS OF DOLLARS
120

BILLIONS OF DOLLARS
1

I

RECEIPTS

H 100

100 -

80

80

60
40
20
CORPORATION INCOME TAXES

I

0
180

I

I

J0
180

OUTLAYS
(EXPENDITURES AND NET LENDING)

-] /n

140

I/ A

_

"

s*

170

NONDEFEh4SE

100
on

^^

"""

60

ion

„ . — — -—"-**
..

3.
^^* ^\^

100

~^~
60

NATIONAL DEFENSE

40 ^

I
1961

I
1962

I
1963

I
1964

!

1965

1

I
1967

1966

1
1968

140

!
1969

I
1970

1971

!

£ 40

1972

FISCAL YE <\RS
COUNCIL OF ECONOMIC ADV15ERS

SOURCES: TREASURY DEPARTMENT AND OFFICE OF MANAGEMENT AND BUDGET

[Billions of dollars)
(Outlays

Recei]ots
Natio nal defense
Period

Fiscal year:
1961
1962
__ _ „
1963
J964 _ __ „ _ _ _
1965
1966
1967
__ _ _ _
1968
_ -__
1969 „ _
1970
1971 *
Cumulative totals for
first 2 months:
Fiscal vear 1971
Fiscal year 1972
1

Expenditure account.

36



Total

Individual Corporation
income
income
taxes
taxes

Other

Total

Total

Department of
Defense,
military l

94, 4
99. 7
106. 6
112. 7
116. 8
130. 9
149.6
153. 7
187. 8
193. 7
188. 3

41. 3
45. 6
47. 6
48. 7
48. 8
55. 4
61. 5
68. 7
87. 2
90. 4
86. 2

21. 0
20. 5
21. 6
23. 5
25. 5
30. 1
34. 0
28. 7
36.7
32.8
26.8

32. 1
33. 6
37.4
40. 5
42. 6
45. 3
54. 1
56. 3
63. 9
70. 5
75. 4

97. 8
106. 8
111. 3
118.6
118. 4
134. 7
158. 3
178. 8
184. 5
196.6
211.6

47. 4
51. 1
52. 3
53.6
49. 6
56. 8
70. 1
80. 5
81. 2
80. 3
77. 6

43.3
46. 9
48. 1
49. 6
46. 0
54. 2
67. 5
77. 4
77. 9
77.2
74. 6

27. 8
28. 8

13. 5
13. 4

1. 3

13. 0
14. 1

36. 8
38. 1

13. 1
10. 8

12. 7
10. 5

1.3

Interna- Health
tional
and
Inaffairs
income terest Other
and
security
finance

3. 0

22. 1
23. 7
25.5
26. 8
27. 4
31. 6
37. 9
43.8
49. 4
56. 5
70. 2

9. 8
10. 4
11. 3
12.6
13. 7
15. 8
18. 3
19. 7

16. 8
19.2
20. 2
24. 2
26. 7
30. 5
33. 2
36.2
34. 3
37. 9
41. 1

.5
.7

10. 6
12, 6

3. 3
3. 3

9. 4
10. 8

3.4

4. 5
4. 1
4. 1
4. 3
4. 5
4.5

4. 6
3. 8
3.6

8. 1
8.3
9.2

Sources: Treasury Department and Office of Management and Budget.

FEDERAL SECTOR, NATIONAL INCOME ACCOUNTS BASIS
According to current estimates for the second quarter, Federal receipts rose $2% billion (seasonally adjusted annual
rate) and expenditures rose $7% billion, yielding a deficit of $221/2 billion. Preliminary estimates for the third quarter,
indicate expenditures increased $4 billion.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
240

240

220

200

160

140

120

100
+20

100

SURPLUS

n n

r—, m
1222

"DEFICIT
-20

i

i

%$

"~"

l

!

1965

!

f

1966

n ni ^ m
!

1
1967

JH

^

i

i

i

nrinr,

"*

E^i

^

!

!

1968

f
1969

Wi
i

!

1
1970

Hi

%

^
1

1 i,

I
^

C^i

f

!

-20

1971

CALENDAR YEARS
COUNCIL OF ECONOMIC ADVISERS

[Billions of dollars, quarterly data at seasonally adjusted annual rates]
Federal (jovernm ent receip ts

Period

Feeleral Go vernmen b expend itures

Grantsin-aid
ContriPurPersonal Corpo- Indirect butions
rate
chases Trans- to State Net
tax and profits business
Total nontax
tax and
for
Total of goods fer pay- and interest
tax
nontax
ments local
and
paid
receipts accruals accruals social inservices
governsurance
ments

Surplus
or
Subsidies Less:
deficit
less
Wage . ( - > '
current accruals income
surplus
less
and
of Govt. disproduct
enter- burse- accounts
prises
ments

Fiscal year:
1967
1968
1969
1970
1971 " _ _ _
Calendar
year:
1967
1968
1969
1970

147.
160.
190.
194.
193.

2
8
1
5
6

64. 5
71. 3
90. 6
94. 4
89. 2

31. 2
33. 8
37. 4
32. 7
31. 7

15. 8
17. 1
18. 5
19. 2
20. 1

35. 7
38. 5
43. 7
48. 2
52. 7

154.
172.
186.
197.
212.

5
3
2
0
7

85. 3
94, 9
99. 3
99. 2
96. 1

39. 4
44. 8
50. 7
56. 9
69. 8

14. 8
17.5
19. 6
22. 1
26. 9

9. 9
10. 9
12.3
14. 0
14. 3

5. 1
4. 4
4. 3
5. 0
5. 5

0.0
.0
.0
.0
-. 1

— 7. 2
-11. 6
4.0
-2. 5
-19. 1

151.
175.
196.
191.

2
0
9
5

67. 5
79. 7
94.9
92. 2

30. 7
36.7
36.3
30. 6

16. 3
18. 0
19. 0
19. 3

36. 7
40. 7
46. 8
49. 3

163.
181.
189.
205.

6
5
5
1

90. 7
98. 8
99. 2
97. 2

42 2
48.' 2
52. 4
63. 4

15. 8
18.7
20. 3
24.4

10. 2
11. 7
13. 1
14. 6

4. 6
4. 1
4. 6
5.5

.0
.0
.0
.0

-12. 4
-6. 5
7. 3
-13. 6

1970:I___
II__
III_
IV..

191.
193.
191.
189.

6
8
3
3

93. 8
94. 5
89. 7
91. 0

30. 6
30. 9
31. 9
29. 0

19. 0
19. 1
19. 7
19. 4

48. 2
49. 2
50. 0
49. 8

196.
207.
206.
209.

1 100. 2
9 96. 8
7 96. 1
8 95. 9

56. 1
65. 3
64. 6
67. 5

23. 0
23. 9
24. 9
25. 9

14. 3
14. 3
15. 0
14.8

5. 0
5. 5
5.8
5.7

2. 5
-2. 1

-4. 5
-14. 1
-15. 4
-20. 5

1971:I___ 195. 6
II-_ 198. 3
11*

87.6
88. 4
90. 1

32. 4
33.4

20. 6
20. 6
21. 5

55. 0
55. 9
56. 9

213. 2
220. 9
224. 9

69. 6
77. 5
77.6

27. 3
29. 5
30. 5

14. 0
13. 4
13. 9

5.7
4. 8
5. 3

.0
.0
.0

96. 7
95. 7
97. 6

A

'. 0

- 17. 5
-22. 6

Source: Department of Commerce.




37

UNITED STATES
GOVERNMENT PRINTING OFFICE

POSTAGE AND FEES PAID
U.S GOVERNMENT PRINTING OFFICE

DIVISION OF PUBLIC DOCUMENTS

WASHINGTON, D.C. 2O4O2
OFFICIAL

BUSINESS

First-Class Mail

Contents
TOTAL OUTPUT, INCOME, AND SPENDING

Page
1
2
3
4
5
6
7
8
9

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

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

10
11
12
13
14
15

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

-___

16
17
18
19
20
21
22
23
24
25

PRICES
Consumer Prices
Wholesale Prices
Prices Received and Paid by Farmers

26
27
28

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

29
30
31
32
33
34

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

35
36
37

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

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington. D.C. 20402
Price 25 cents per copy, $3 per year ; $4 foreign. Domestic air mail, $3.60 additional per year.

38




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