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Authorized for public release by the FOMC Secretariat on 5/27/2020 REC'D INRECORDS SECTION BOARD OF GOVERNORS OF THE APR 7 1969 FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551 April 7, 1969 CONFIDENTIAL (FR) TO: Federal Open Market Committee FROM: Mr. Holland Enclosed for your information is a memorandum from Mr. Partee dated April 4, 1969, entitled "Correction of Data Presented to FOMC on Business Capital Spending Plans." Robert C. Holland, Secretary, Federal Open Market Committee. Enclosure Authorized for public release by the FOMC Secretariat on 5/27/2020 REC'D IN RECORDS SECTION BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM APR 7 1969 Office Correspondence To Mr. Holland From J. Charles Partee Subject: Correction of Data Presented to FOMC on Business Capital Spending Plans. In my presentation to the Federal Open Market Committee on April 1, I indicated that preliminary and confidential tabulations from the Commerce-SEC plant and equipment spending survey showed that the very large manufacturing firms were planning only a 7 per cent increase in outlays this year, while medium-size firms (total assets from $10 to $100 million) had reported plans for a 28 per cent increase. Final tabu- lations have just been received from Commerce on this point, and they now show a 12.9 per cent increase in planned outlays for the largest firms. Medium size manufacturers are still shown as planning a much larger rise-28.8 per cent--but the increase for the large companies is so much greater than I reported that I believe the correction should be brought to the attention of the Committee. A table showing the results of the final tabulation, for the confidential use of Committee members and staff, is attached. Attachment. Authorized for public release by the FOMC Secretariat on 5/27/2020 Plant and Equipment Expenditures for Manufacturing, by Size of Firm 1968-1969 Per cent change 1/ Sector and Size of firm (total Not Seasonally Adjusted 1st Half '68 assets in mils. o to Annual 1st half '69 to change 1968- 1969 to 2nd Half '68 2nd Half '68 to 1st Half '69 1st Half '69 to 1st Half '69 Total manufacturing under 10 10 - 99 100 and over 15.1 4.6 17.7 18.0 -1.2 .8 4.2 -4.8 19.6 6.0 28.6 19.2 16.2 6.1 28.8 12.9 2.6 -6.9 4.9 5.2 10.7 13.1 16.7 6.5 6.7 -5.6 14.8 6.5 Durable under 10 10 - 99 100 and over 18.5 5.1 23.6 21.9 -3.5 -2.2 3.2 -8.1 19.6 2.5 28.5 21.3 14.9 1.5 30.3 11.7 4.1 -7.6 8.6 7.2 9.8 11.3 17.4 4.6 4.9 -10.0 12.8 6.4 Nondurable under 10 10 - 99 100 and over 11.8 3.8 11.8 14.3 1.4 4.9 5.3 -1.6 19.6 10.5 28.8 17.4 17.5 12.4 27.2 14.0 1.1 -6.0 1.1 3.5 11.7 15.6 16.0 8.4 8.6 0.3 17.0 6.6 Not for publication. 2nd Half '69 Seasonally Adjusted 1st Half '68 2nd Half '68 1/ dollars) to 2nd Half '68 2nd Half '69
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