Economic Indicators SEPTEMBER Prepared for the Joint Economic Committee by the Council of Economic Advisers. 98th Congress, 2d Session

98th Congress, 2d Session Economic Indicators SEPTEMBER 1984 Prepared for the Joint Economic Committee by the Council of Economic Advisers UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1984

SENATE WILLIAM V. ROTH, JR. (Delaware) JAMES ABDNOR (South Dakota) STEVEN D. SYMMS (Idaho) MACK MATTINGLY (Georgia) ALFONSE M. D'AMATO (New York) LLOYD BENTSEN (Texas) WILLIAM PROXMIRE (Wisconsin) EDWARD M. KENNEDY (Massachusetts) PAUL S. SARBANES (Maryl) JOINT ECONOMIC COMMITTEE (Created pursuant to Sec. 5(a) of Public Law 304, 79th Cong.) ROGER W. JEPSEN, Iowa, Chairman LEE H. HAMILTON, Indiana, Vice Chairman DAN C. ROBERTS, Executive Director HOUSE OF REPRESENTATIVES GILLIS W. LONG (Louisiana) PARREN J. MITCHELL (Maryl) AUGUSTUS F. HAWKINS (California) DAVID R. OBEY (Wisconsin) JAMES H. SCHEUER (New York) CHALMERS P. WYLIE (Ohio) MARJORIE S. HOLT (Maryl) DAN LUNGREN (California) OLYMPIA J. SNOWE (Maine) WILLIAM A. NISKANEN, Member WILLIAM POOLE, Member [PUBLIC LAW 120SlsT CONGRESS; CHAPTER 237IST SESSION] JOINT RESOLUTION [SJ. Res. 55] To print the monthly publication entitled "Economic Indicators" Resolved by the Senate 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," that a sufficient quantity be printed to furnish one copy to each Member of Congress; the Secretary the Sergeant at Arms of the Senate; the Clerk, Sergeant at Arms, Doorkeeper of the House of Representatives; two copies to the libraries of the Senate House, the Congressional Library; seven hundred copies to the Joint Economic Committee; the required numbers of copies to the Superintendent of Documents for distribution to depository libraries; 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 $20 a single copy ($3.13 foreign), or by subscription at $27.00 per year ($35 for foreign mailing) from: SUPERINTENDENT OF DOCUMENTS GOVERNMENT PRINTING OFFICE WASHINGTON, D.C. 20402

TOTAL OUTPUT, INCOME, AND GROSS NATIONAL PRODUCT According to very preliminary ("flash") estimates for the third quarter of 1984, gross national product (GNP) is expected to rise $58.9 billion or 6 percent, both at annual rates. Real GNP (GNP adjusted for price changes) is expected to rise 3 percent (annual rate) the implicit price deflator, 2.9 percent (annual rate). In the second quarter, GNP rose 10.7 percent, real GNP rose 7.1 percent, the deflator rose percent. BILLIONS OF DOLLARS (RATIO SCALE) 4,000 BILLIONS OF DOLLARS (RATIO SCALE) 4,000 SEASONALLY ADJUSTED ANNUAL RATES - 3,600 f 3,60) _ 3, 2,800 2,400 2,000 _ E E y/ ^ IKJ fi ir> ^ GNP RENT DOLLARS V I *^ ^ E _ 3, 2,800 2,40) 2,000 1,600 --^1 ^ GNP 1^ 1972 DOLLAR 5 <^A-- * **" 1,600."^^ ^** 1, l l l 1 1 I I 1 1 l l l i i i i i i \ \ \ 1 1 1 1 1 1 1984 1, SOURCE: DEPARTMENT OF COMMERCE [Billions of current dollars; quarterly data at seasonally adjusted annual rates] Gross national product Personal consumption expenditures Exports imports of services Net exports Exports Imports * Government purchases of services Federal National defense Gross private domestic investment Nondefense State local Filial sales 1972 1973 1974 : I n m IV : I nmiv 1984: I IF m* 1,185.9 1,326 1,434 1,54 1,718.0 1,918 2,163.9 2,417.8 2,631.7 2,957.8 3,069 3,304.8 3,026.0 3,061 3,080.1 3,109 3,173.8 3,267.0 3,346 3,431.7 3,55 3,644.7 3,703 737.1 812.0 888.1 976 1,084 1,204 1,346 1,507 1,668.1 1,849.1 1,984.9 2,155.9 1,931 1,960.9 2,001 2,046.1 2,070 2,141 2,181 2,230 2,276 2,332.7 19 229.8 228.7 206.1 257.9 324.1 386 423.0 401.9 484 414.9 471 436 431 415.9 376 40 449 491.9 540.0 623.8 627.0 0.7 14 13 26.8 13.8-4.0 1 1 13 23.9 28.0 19.0 8 27.7 35 6 6 19-6 -16-29.8-51 -58.7 77 109 146 154.9 170.9 182.7 218.7 281 338.8 369.9 348 336 359 366 346 321.7 328 328.1 342.0 346.1 358.9 362 76.7 95 132.8 128.1 157.1 186.7 219.8 268.1 314.8 341.9 329 344 331.7 330.8 339.7 315 308.9 334 358 375.9 410 421.1 253.1 270 304.1 339.9 362.1 393.8 431.9 474 537.8 596 650 685 630.9 63 656 681.0 678.8 68 689.8 691 704 74 101.7 102.0 111.0 122.7 12 143 153 168 197.0 228.9 258.9 269.7 249.8 24 261 279 273.0 270 26 266 267 296 73.1 72.8 77.0 83.0 86.0 92.8 111.8 131 15 179 168 175 18 191.0 194.7 199.9 207 213 220.8 28 29.1 33.9 39.7 43 50 5 56 65.9 75 79 69 81 69.7 78 88 78 71 68 59.1 54 75 151 168 193.1 217 232.9 250 278 306.0 340.8 367 391 415.8 381.1 388.7 394.7 401 405.8 411 420 425.1 436.8 447 1,17 1,307.9 1,420.1 1,556.1 1,706 1,895 2,137-4 2,403 2,641 2,931.7 3,095 3,318 3,043.1 3,072.1 3,095 3,170.8 3,216.8 3,286 3,350.9 3,419.0 3,479 3,594.1 *Very preliminary ("flash") estimate. Source: Department of Commerce, Bureau of Economic Analysis.

GROSS NATIONAL PRODUCT IN 1972 DOLLARS [Billions of 1972 dollars; quarterly data at seasonally adjusted annual rates] Gross national product Personal consumption expenditures Nonresidential fixed Gross private domestic investment Residential fixed Net exports Exports of services Exports Imports Government purchases of services Federal National defense Change in business inventories Nondefense State local Final sales 1972 1973 1974 1,185.9 1,254 1,246 1,231 1,298 1,369.7 1,438 1,479 1,47 1,51 1,480.0 1,534.7 737.1 767.9 762.8 779 823.1 864 903 927 931.8 950 96 1,00 121.0 138.1 13 119 125 140 158 169.9 165.8 17 166.9 171.0 63.8 62 48 4 51 60.7 62 59.1 47.1 44 37.9 5 10 17 11-6.7 7.8 1 16.0 7-4 11-10 36 0.7 15 27.8 3 25 22.0 24.0 37 50 43.8 29.7 12 77 97 108 103 110.1 112.9 126.7 146 159.1 147 139 76.7 81.8 80.7 71 84.7 90.9 102.7 109.0 108.8 116 118.0 126.9 253.1 25 260 265 265 26 274 278 284 287.0 292.7 291.9 101.7 95.9 96 97 96.8 102.1 106 110 117.0 116 73.1 68 66.9 66 64.9 65 6 67 70.0 73 79.1 84.7 28 27 29.7 31.0 31.8 3 34.7 34.8 36 36.7 37.9 31 151 157 163 167.8 168 168.8 174 176 177.9 176.8 17 17 1,17 1,237.1 1,234.7 1,238 1,290 1,356 1,422 1,47 1,479 1,500.9 1,490 1,538 : I nmiv 1,483 1,480 1,477.1 1,478.8 95 958.9 964 976 175 166.9 163.9 161 36 37 36.8 40.8-6.7-4.0-6 -24 34.9 34.1 2 24.1 15 155.1 146 136.7 117 121.0 120.9 112 290 287.0 292.8 300 114.8 111.0 117 124.8 7 78.1 80 81.9 39.1 32.9 36 42.9 175 176.0 17 175.8 1,490 1,484 1,483 1,503 : I nmiv 1,491.0 1,524.8 1,550 1,572.7 982 1,006 1,015 1,032 161 165 172 184 46 53 57 57.8-16 -6.1.9 7 22.9 13 11.9 2.0 138 137.0 141 141.0 115 123 129.7 139.1 294 292 292.0 288.8 119.0 117 115 113.0 8 84.8 84 86 3 32 31 26.7 175 175 176 175.8 1,507 1,530.9 1,549 1,565 1984: I n r. m* 1,610.9 1,638.8 1,653 1,044.1 1,064 19 202.9 60 60.8 31 20-8 -11 144.9 144.7 153 156 289 302.1 11 123 87.1 89 25 33 177 178.9 1,579 1,618 *Very preliminary ("flash") estimate. Source: Department of Commerce, Bureau of Economic Analysis. IMPLICIT PRICE DEFLATORS FOR GROSS NATIONAL PRODUCT [1972 = ; quarterly data are seasonally adjusted] Gross national product Personal consumption expenditures Durable Nondurable Services Gross private domestic investment Nonresidential fixed Residential fixed Exports imports of services Exports Imports Government purchases of services Federal National defense Nondefense State local 1972 1973 1974 0 105 118 129 1324 140.05 1502 1632 1782 1950 2078 2154 10 116 125 131.7 139 149.1 162 179.0 194 206.0 213 101.7 108 117 123.9 12 136 14 156 167.1 174 177.7 108 123 132 137 143 153 169.9 188.1 202 208.7 213.0 104.7 113.0 121 129 139 150.0 162 178.8 196.8 213 226.0 103.8 115 13 138 146 157 170.8 186 20 209 206 109.1 120 131.0 140.7 158.0 178 218 234.1 241 246 112.7 134.8 149 155 161.9 172 192 212.9 230.9 236.0 241.0 116.7 164 179 185 205 214.1 246.1 289 293.8 279 271 106 114.9 126.0 133 142.8 153.1 164.8 185 207 221 232.1 106 115.1 124.9 132 141.9 152.7 166.0 187 209.1 227.0 236 105 114 128 13 144 153.8 162 180.8 204.7 209.8 220.0 107.0 118.0 129 138 148 159.7 17 191 208.0 222.8 236.7 : I n m IV.. 203.98 206.77 2083 2107 202 204 207 209 172.8 174.0 175 175 207.1 207 209 210 207.9 211 215 219 208.7 210 208.8 210.1 241.7 241.8 241.8 240.0 236 236 236 235 282.9 27 280.9 280.1 217 220.7 223 223.8 222 224 227 233.1 208 211.7 213.9 206 217 220.8 224.7 228 - I ntit.. IV 212.87 2145 215.89 2181 210.7 212.8 214.8 216.0 176 176.8 178.0 179 210 212 214 214.8 221.9 224.9 227 229.7 207.1 205 205.1 208.1 245 243.0 248.7 248 237.7 239 241 245 267.8 271.0 276 270 229 230.8 232.8 235 23 234.8 237.9 240.0 219 220 219.1 221 231 234.9 238 241.8 1984: I n r.. in* 2208 2220 224.00 218.0 21 179.0 179 217 216 232 236.0 206 207 249 255.9 247.7 250 267.9 269 238 240 245.1 246 215 225.1 246 250.0 'Very preliminary ("flash") estimate. Source: Department of Commerce, Bureau of Economic Analysis.

CHANGES IN GNP, PERSONAL CONSUMPTION EXPENDITURES, AND RELATED PRICE MEASURES [Percent change from previous period; quarterly data at seasonally adjusted annual rates] Gross national product Personal consumption expenditures Current dollars Constant (1972) dollars Implicit price deflator Chain price index Fixedweighted price index (1972 weights) Current dollars Constant (1972) dollars Implicit price deflator Chain price index Fixedweighted price index (1972 weights) 1972 1973 1974 : I nin IV.. : I nin IV 1984- I n r nr 10.1 11.8 8.1 8.0 10.9 11.7 12.8 11.7 8.8 12 3.8 7.7-4.7 2 3.9 8 12 10.1 10 14.9 10.7 6 5.8-1 2 5 5 2.8-2 -2.1-4 -.8 -.9 9 6.8 5.9 10.1 7.1 3 4 5.8 8.8 9 5 5.8 7 8 9 6.0 3.8 4 5 3 3 2 3.1 4 4 2.9 4.1 6.0 9.1 6.1 7 8.9 8.9 9 6 4 6.0 5 5.8 3 4 4 4.1 4.9 4.1 4.0 6.0 9 9.1 5.8 6 7.8 9 9.8 9.7 6 4 5 4.7 5.8 4 4.1 4.7 3.9 4 3 9 10 9 9.9 11.0 11.1 11.8 11.9 10.7 10.9 7 8 8 6 8 9 4.8 14 7 8 10 5.8 4 -.7 5 4 2.7 2.0 1 4.8 2.9 5.1 2 10.0 3.8 6.8 4 7.9 10.1 7 5.1 5.8 7.0 9.0 10 8.7 5.9 5 4.0 6.1 4.0 4.1 2 3.8 3 6.1 10 7.7 5 6.0 7 9 10.7 6.1 4.1 4 6 2 4 3 4.7 3 6.1 10 7.8 5 6 7 9.7 11.1 9 5.9 4.0 5 6 4.9 1.9 4 3.9 3 4.9 3.1 *Very preliminary ("flash") estimates. NOTE.Annual changes are from previous year quarterly changes are from previous quarter. Source: Department of Commerce, Bureau of Economic Analysis. NONFINANCIAL CORPORATE BUSINESSOUTPUT, COSTS, AND PROFITS [Quarterly data at seasonally adjusted annual rates] Gross domestic product of nonfinancial corporate business (billions of dollars) Current dollars 1972 dollars cost profit 2 Capital consumption allowances with capital consumption adjustment Current-dollar cost profit per unit of output (dollars) * Indirect business taxes 3 Compensation of employees Net interest Corporate profits with inventory valuation capital consumption adjustments Profits tax liability Profits after tax 4 Output per hour of all employees (1972 dollars) Compensation per hour of all employees (dollars) 1972.. 1973 1974 - III IV - I nmiv 1984: I II r 678.0 759 818.9 890.0 1,001 1,128 1,276,416.8,540.7,73,778,917.7,787.8,772 1,812 1,887 1,956 2,014 2,084 2,146.9 678.0 731.9 708 694 745 795.8 846 876.1 859 88 857 896 858 846 85 886 912 931.1 956.9 979 1.000 1.038 1.156 182 143 118 108 117 1.793 1.969 2.074 2.139 2.083 2.094 2.118 2.130 2.144 2.163 2.178 2.192 0.092.093.112.137.141.145.155.171.198 17 45 43 47 54 50 43 41 39 36 34 0.113.114.127.140.141.141.144.149.172 01 10 19 11 17 18 22 20 19 17 18 059 92.786.837.878.928.998 1.094 118 107 197 109 104 119 121 108 100 108 115 114 0.028.031.042.044.040.040.044.050.065.076.084.077.080.081.079.076.077.077.078.081 0.107.107.090.124.144.163.168.154.140.167.138.191.141.123.151.182 06 21 33 46 0.049.055.059.059.071.075.079.079.078.072.052.065.052.043.049.064.073.072.078.079 0.058.053.030.065.073.088.089.075.062.095.086.126.089.080.102.118.133.149.155.167 764 7.849 755 '^7.774 7.998 8.141 809 8.194 8.118 871 857 834 806 898 864 817 8.728 8.725 8.801 8.838 52 529 5.937 607 7.021 755 8.191 8.961 9.884 10.811 1177 12.166 11.801 11.913 12.027 12.131 124 183 1254 1225 is measured by gross domestic product of nenfinaneial corporate business in 1972 dollars. 2 This is equal te the deflator for gr&ss domestic product of noniaancial corporate business with the decimal point shifted two places to the left. 3 Indirect business tax nontax liability plus business transfer payments less 4 With inventory valuation capital consumption adjustments. Sources: Department of Commerce (Bureau of Economic Analysis) Department of Labor (Bureau of Labor Statistics).

NATIONAL INCOME [Billions of dollars; quarterly data at seasonally adjusted annual rates] National income Compensation of employees 1 Proprietors' income with inventory valuation capital consumption adjustments Farm Nonfarm Eental income of persons with capital consumption adjustment Corporate profits with inventory valuation capital consumption adjustments Profits with inventory valuation adjustment without capital consumption adjustment Profits before tax Inventory valuation adjustment Capital consumption adjustment Net interest 1972 1973 1974 : I II. m IV... : I II ffl IV 1984: I n r 963 1,086 1,.7 1,239 1,37 1,550 1,760 1,966.7 2,116 2,363.8 2,446.8 2,646.7 2,422 2,443.9 2,452 2,468 2,527.0 2,609.0 2,684 2,766 2,873 2,944.8 718.0 801 877 931 1,036 1,152.1 1,301.1 1,458.1 1,599 1,765 1,864 1,984.9 1,834 1,857.7 1,876 1,888.7 1,921 1,962 2,000.7 2,055 2,113 2,15 18.7 32.8 26 24 19.1 19.1 26 31.9 21.8 31 21,8 13.8 30.0 1 12.7 25 16 10.1 11 17 32 23 58.1 61.0 6 65 7 84.8 9 95 9 8 107.9 86.8 88 89 92.1 98 106.8 112.1 114 122 126 21.0 22 23 23.0 23 24.8 26 27.9 31 42 51 58 47.8 48 52.9 57.0 57.7 59.0 56 60 61.0 62.0 96 108 94.9 110 138.1 167 192 194.8 175 189.9 159.1 225 159.9 161.7 16 151 179.1 216.7 24 260.0 277 291.1 94.0 105 96.7 120 151 178 205.1 209 191.7 197 156.0 192.0 161.9 158.8 143 157 186.1 208.1 216 229.8 238.7 125 136.7 132.1 166 194.7 229.1 252.7 234 221 165 203 167 169.8 168.9 155.8 161.7 198 227 225 24 246.0-6 -20.0-40.0-11 -14.7-16 -24.0-43.1-42.9-23 -9-11 -6-8.9-10.1-12 -4-12.1-19 - -13-7 2.7 2.7-1.8-10.1-13 -11-12.7-14.8-16 -7 3.1 33-1.8 4 8 21.7 30 36.9 43 47 52 51 60 76.1 84 87 102 121.7 153.8 192 241.0 260.9 256 263 268 257.7 253.8 254 254 25 258.9 266.8 282.8 1 Includes employer contributions for social insurance, (See also p. 5.) Source: Department of Commerce, Bureau of Economic Analysis. PERSONAL CONSUMPTION EXPENDITURES [Billions of dollars, except as noted; quarterly data at seasonally adjusted annual rates] durable Durable Motor vehicles parts personal consumption expenditures Furniture household equipment Other nondurable Food Nondurable Clothing shoes Gasoline oil Other Services Retail sales of new passenger cars (millions of units) Domestics Imports 1972 1973 1974 : I II Ill IV : I II Ill IV 1984- I II r 737.1 812.0 888.1 976 1,084 1,204 1,346 1,507 1,668.1 1,849.1 1,984.9 2,155.9 1,931 1,960.9 2,001 2,046.1 2,070 2,141 2,181 2,230 2,276 2,332.7 111.1 12 121 13 156.8 178 213 214.7 235 245.1 279.8 239 241 244 25 259 276.1 284.1 299.8 310.9 320.7 52 57.1 50 55.8 72 84.8 9 96 90.7 101.9 108.7 129 106 105.1 108.1 115 115 128 132.0 141.7 147.7 152 41.7 47.1 50 53 59.1 6 72.8 81.8 86 92 94 104.1 92.1 94 94 96 99.1 102 105 109.8 113.0 116 16.9 1 20 22.9 25 27.7 31.7 35.1 37.7 41 42.1 46 41 42.1 41.9 43.1 4 45 46.9 48 50 51.7 300 333 373 407 441.7 478.8 528 600.0 668.8 730.7 757 801.7 746 750 762 770 775 796.9 811.7 823.0 841 858 154.9 172.1 19 213 230 249.8 275.9 311 345.1 373.9 392.8 416 384 390 396.0 400 406.7 413 420 425.1 433.9 442.1 55 61 64.8 69 75 82 92 99.1 104 114 118.8 127.0 118.0 118.0 119.0 120.0 121 " 127.1 126.8 132 136.1 14 25 28 36 40 44.0 48.1 51 66 84.8 94 90 90.0 93 88 89.9 89 86.7 89 92.1 91.7 92.0 92.8 64.9 71 78 8 91.9 98 108.8 122.8 134 147.9 155 168 150.8 153 157 166.7 17 173 179 181 325 355 393 437.0 48 547 618.0 69 784 883.0 98 1,074 945 968 994 1, 020 1,035.8 1,068 1,08 1,107 1,124 1,15 9 9 7 7.0 8 9.0 8 6 6 5.8 6.8 5.8 5 6.0 6.0 6.9 6.9 7 8 8 1 1.8 1 1 1 2.1 2.0 2 2 2 2 2.0 2 2 2 2 2 2 2 Source: Department of Commerce, Bureau of Economic Analysis.

SOURCES OF PERSONAL INCOME Personal income increased $16.1 billion (annual rate) in August, following a rise of $20 billion in July. Wages salaries rose $3.9 billion in August compared to a rise of $8.7 billion in July. BILLIONSJDF j>ollars*(ratoscale) 3, " 2,800 2,400 2,000 1,600 TOTAL PERSONAL INCOME BILLIONS OF DOLLARS*(RATIO SCALE) 3, 2,800 2,400 2,000 1,600 1, 1,000 800 WAGE AND SALARY DISBURSEMENTS 1, 1,000 800 600 600 400 OTHER INCOME 400 TRANSFER PAYMENTS 120 1984 120 * SEASONALLY ADJUSTED ANNUAL RATES SOURCE: DEPARTMENT OF COMMERCE [Billions of dollars; monthly data at seasonally adjusted annual rates] TV*to1 personal income Wage salary disbursements 1 Other labor income 1 2 Proprietors ' income 8 Farm Nonfarm income of persons 4 dividend income interest income payments 5 Less: contributions for social insurance N fcuty! personal income 6 1974..... : Aug Oct Dec 1984: Jan Feb Mar Apr r May r June T July r Aug p. 1 168 6 1 265 0 1 391 2 1 5404 1 732 7 1 951 2 2,165 3 2429 5 2,584 6 2 744 2 2 759 9 2 785 0 2,814 9 2 834 2 2 860 2,897 2 923 5 2,940 2,968 5 2 978 8 3,006 5 3 026 7 3,042.8 765 7 8064 889 9 983 2 1 1063 1 237 6 1 356 7 1 493 1 1 568 7 1 659 2 1 667 8 1 682 2 1 7060 1 712 2 1 727 9 1 747 6 1 755 1 1 764 1 785 3 1 789 8 1 804 3 1 813 0 1 8169 55 8 645 75 9 89 4 102 5 114 9 1280 1400 155 5 173 1 1759 178 0 180 1 182 1 184 3 186 3 188 1 1899 191 7 193 5 195 3 197 0 1984 26 5 24 6 19 i 19 1 26 3 31 9 21 8 31 5 21 8 13 8 12 9 13 6 14 8 15 8 21 4 30 1 365 30 9 254 21 4 23 5 26 1 29 0 62 2 65 4 75 0 84 8 92 2 2 95 6 93 6 89 2 107 9 111 1 114 1 114 7 114 6 1145 120 7 122 9 123 8 125 7 126 2 127 1 126 9 127 3 23 5 23 0 23 5 24 8 26 6 27 9 31 5 42 3 51 5 58 3 54 5 56 8 58 9 60 9 61 3 61 1 60 8 61 2 61 6 62 0 62 4 62 7 63 0 29 1 29 9 36 5 39 6 45 3 50 8 56 8 64 3 66 5 70 3 708 71 4 72 2 72 9 73 3 740 75 0 760 769 77 1 77 6 78 0 78 2 112 4 123 2 132 5 152 8 1794 218 7 2660 331 8 3666 376 3 383 I 386 7 387 5 387 8 3894 396 6 403 8 411 4 418 4 425 6 432 9 438 9 444 6 141 2 178 3 1943 207 9 223 8 250 3 297 6 337 3 376 1 405 0 404 0 403 4 403 3 410 8 412 2 410 2 4109 412 8 414 9 414 8 415 9 417 2 418 6 47 9 504 55 5 61 1 698 81 1 88 7 104 5 111 4 119 6 120 1 121 1 122 6 122 9 123 9 129 1 1295 130 1 131 3 131 5 132 5 133 0 133 3 1 131 8 1 229 1 1 359 3 1 506 5 1 689 7 1 899 3 2 119 5 2 371 2 2 532 1 2 701 1 2 717 9 2 742 4 2 771 0 2 789 4 2 810 1 2 838 3 2 857 9 2 8805 2 913 8 2 928 1 2 953 5 2 971 0 2 9840 1 The total of wage salary disbursements other labor income differs from compensation of employees (see p. 4) in that it excludes employer contributions for social insurance the excess of wage accruals over wage disbursements. * Consists of employer contributions to private pension, health, welfare funds; workers' injury compensation; directors' fees; a few other minor items, 3 With inventory valuation capital consumption adjustments. 4 With capital consumption adjustment. 5 Consists mainly of social insurance benefits, direct relief, veterans payments. 6 Personal income exclusive of farm proprietors' income, farm wages, farm other labor income, agricultural net interest. Source: Department of Commerce, Bureau of Economic Analysis.

DISPOSITION OF PERSONAL INCOME Real per capita disposable income rose again in the second quarter of 1984. BILLIONS OF DOLLARS * (RATIO SCALE) 2,800 BILLIONS OF DOLLARS * (RATIO SCALE) 2,800 DISPOSABLE PERSONAL INCOME PER CAPITA DISPOSABLE PERSONAL INCOME 4,000 4,000 3,000 1984 3,000 * SEASONALLY ADJUSTED ANNUAL RATES SOURCE: DEPARTMENT OF COMMERCE Personal income Less: Personal tax nontax payments Equals: Disposable personal income Less: Personal outlays l Equals: Personal saving Per capita disposable personal income Current dollars 1972 dollars Per capita personal consumption expenditures Current dollars 1972 dollars Percent change in real per capita disposable personal income Saving as percent of disposable personal income Population (thouss) 2 Billions of dollars Dollars Percent 1972 1973 1974... 951 1,065 1,168 1,26 1,391 1,540 1,732.7 1,951 2,165 2,429 2,584 2,744 141.0 150.7 170 168.9 196.8 226 258.7 301.0 336 387.7 404.1 404 810 914 998 1,096.1 1,194 1,314.0 1,474.0 1,650 1,828.9 2,041.7 2,180 2,340.1 757.7 835 913 1,001.8 1,111.9 1,236.0 1,384 1,553 1,718.7 1,904.7 2,044 2,222.0 52 79.0 85.1 94 82 78.0 89 96.7 110 137 136.0 118.1 3,860 4,315 4,667 5,075 5,477 5,965 6,621 7,331 8,032 8,874 9,385 9,977 Seasonally adjusted annual rates 3,860 4,080 4,009 4,051 4,158 4,280 4,441 4,512 4,487 4,561 4,555 4,670 3,511 3,831 4,152 4,521 4,972 5,468 6,048 6,695 7,326 8,037 8,543 9,192 3,511 3,623 3,566 3,609 3,774 3,924 4,057 4,121 4,092 4,131 4,146 4,303 2.9-1.7 1.0 2 2.9 3.8 1-1.1 2 6 8 8 8 6.9 5.9 6.1 5.9 6.0 6.7 6 209,924 211,939 213,898 215,981 218,086 220,289 222,629 225,106 227,694 230,068 232,351 234,542 : I nmiv 2,536 2,568 2,594 2,639 404 411 398 402.0 2,132.0 2,156.8 2,195.8 2,237 1,989 2,020.1 2,061 2,107 142 136.7 134 130 9,209 9,295 9,439 9,593 4,548 4,546 4,548 4,578 8,342 8,451 8,603 8,773 4,119 4,133 4,145 4,186-2.1-2.7 6.7 6 6.1 5.8 231,513 232,027 232,634 233,230 - I nmiv 2,662.8 2,714 2,76 2,836 401 411 395.8 407.9 2,261 2,302.9 2,367 2,428 2,133 2,206.1 2,248 2,300.0 128.0 96.7 119.0 128.7 9,675 9,832 10,082 10,318 4,591 4,619 4,694 4,776 8,858 9,143 9,290 9,475 4,203 4,296 4,325 4,386 1.1 2 6.7 7 4 5 233,742 234,230 234,811 235,385 1984- I n r. 2,920 2,984 418 430 2,50 2,554 2,349 2,409 152 144.8 10,608 10,806 4,865 4,930 9,651 9,869 4,426 4,502 7.7 5 6.1 235,875 236,369 1 Includes personal consumption expenditures, interest paid by consumers to business, personal transfer payments to foreigners (net). z Includes Armed Forces abroad. Annual data are averages of quarterly data, which are averages for the period. Source: Department of Commerce (Bureau of Economic Analysis Bureau of the Census).

FARM INCOME In the second quarter of 1984, according to preliminary estimates, gross farm income fell $1.9 billion (annual rate) net farm income fell $4 billion. BILLIONS OF DOLLARS * (RATIO SCALE) 120 80 60 _ iiir^ _ ( r ^ ^S\ r i ~-r r;r< DSS FARM INCOME r^= BILLIONS OF DOLLARS * (RATIO SCALE) ^^ ~" ^^ **^ ^ 120 80 60 40 20 10 **\ 1 I \ i i i * 1 1 1 x *""\ 1 1 1 NET FARM INCOME/ \ w % / % i \/ M 1 1 1 /**** i i I % ft % fl \ / ' % v % / 1 1 1 i i i % V 1 1 1 /\ - 1 1 1 1984 40 20 10 * SEASONALLY ADJUSTED ANNUAL RATES SOURCE: DEPARTMENT OF AGRICULTURE [Billions of dollars; quarterly data at seasonally adjusted annual rates] Income of farm operators from farming 1 Gross farm income Cash marketing receipts Livestock products Crops Value of inventory changes 2 Production expenses Current dollars Net farm income 1967 dollars 3 102.9 108.7 127 150 150 167.9 161.8 151 95 96 112.9 131.8 140 142 144.8 138.7 46 47 5 68 67.8 6 70.1 6 49.0 48 5 63 72.7 7 74 69-1 1.1.8 4.9-5 7.9-2 11 7 82.7 88.9 99 118.1 128.9 136.9 139 135 20.1 19.8 27.7 32 21 31.0 22 16.1 11.8 10.9 14 14.9 8 11 7.7 5 - I nm IV 169.9.9 15 163 146.7 143.0 141 148.1 69.8 70.8 70.7 6 76.9 7 70 78.9 4.0 -.7-5 83 140.0 141 140.1 136 29.9 19 13 26.8 10 6.8 4 9.1 : I nm IV 15 147 148 156 144 138 14 128 70 68.7 67 70.1 74 69 76.1 58 11-14 16.8-4 135 135 134.7 135.8 17.7 12.1 13.8 20.8 6.0 4.1 4 6.9 1984: I r n p. 171 169 134.1 141.7 7 71 60.8 70 3.8 8.9 140 143 30.8 26 10.0 8 1 Cash marketing receipts inventory changes plus Government payments, other farm cash income, nonmoney income furnished by farms. 2 Physical changes in end-of-year inventory of crop livestock commodities valued at average prices during the year. 3 Income hi current dollars divided by the consumer price index (Department of Labor). Source: Department of Agriculture, except as noted.

CORPORATE PROFITS In the second quarter, according to revised estimates, corporate profits before tax rose $2.7 billion (annual rate) after-tax profits fell $0 billion. BILLIONS OF DOLLARS 320 SEASONALLY ADJUSTED ANNUAL RATES BILLIONS OF DOLLARS 320 280 240 - A 120 s 4 80 UVianiriM I 1 40 / <s '' 9 +s ---* *** 280 PROFITS BEFORE TAX 1 ""^\ v-\ ^ ~ _ PRC5FITS AFTER TA X /n *^~ V \^^ X /I *"\ \ UNDISTRIB JTED PROFITS ' u^ / TAX LIABILITY, ^ / V. ^.*,--> ***** / /-.»*- ^m<^ '****. 120 80 40 1 1 i 1 1 1 \ \ \ i 1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 1 1 1984 0 SOURCE: DEPARTMEN r OF COMMERCE COUNCIL OF E CONOMIC ADVISERS [Billions of dollars; quarterly data at seasonally adjusted annual rates] Profits (before tax) with inventory valuation adjustment l Profits after tax 2 Financial Domestic industries 3 Nonfinancial Manufacturing Wholesale retail trade Profits before tax Tax liability Dividends Undistributed profits Inventory valuation adjustment 1972 1973 1974 : I n... m IV... : I n. m IV 1984: I n r 94.0 105 96.7 120 151 178 205.1 209 191.7 197 156.0 192.0 161.9 158.8 143 157 186.1 208.1 216 229.8 238.7 85 92.0 80 107 137 163 185 179.0 161.9 173 133 167 139.8 138 136 119.7 134.9 162 180 190.8 204.1 217 15 15.9 1 11.8 17.1 23.1 31.0 30 26.9 19 19 29 13 19.0 21.0 24.9 28 32.0 29 28 28.7 28.9 70.0 76.0 65 95.8 120 140 154 148 134.9 15 114.0 137 126 119 115 94.8 106 130 151.1 162 175 188 40.7 45 39.0 52 6 78 86.9 85 72.9 84.9 54 65 58.0 57 60 42 44.9 59 73.8 82.9 89.8 92 13 13.9 12 21 22 26 26.9 27.1 23 31.8 25.9 33 30 25 24.0 24.1 25 33.0 35.9 39 40 47.0 125 136.7 132.1 166 194.7 229.1 252.7 234 221 165 203 167 169.8 168.9 155.8. 161.7 198 227 225 24 246.0 41 49.0 51 50 63.8 72.7 83 87 84.8 81.1 60.7 75.8 62.9 62.9 61.9 5 59.1 74.8 84.7 84 92.7 95.8 58.9 76 85.1 81 102 122.0 145.9 165.1 149.8 140.0 104.8 127 104.7 106.9 107.0.8 102 123 142 141.1 150 150 24 27.0 29.9 30.8 37 40.8 47.0 52.7 58 66 6 72.9 6 68 69.0 70 71.1 71.7 7 75 77.7 79.9 34 49 55 50.7 65.1 81 98.9 112 91 73 35 54 35 38 38.1 30 31 51.7 69 65 72.9 70-6 -20.0-40.0-11 14 7-16 240-43.1-42.9-23 -9-11 -6-8.9-10.1-12 -4-12.1-19 - -13-7 1 See p. 4 for profits with inventory valuation capital consumption adjustments. 2 Includes rest of the world, not shown separately, 3 Includes industries not shown separately. Source: Department of Commerce, Bureau of Economic Analysis.

GROSS PRIVATE DOMESTIC INVESTMENT According to revised estimates for the second quarter, business fixed investment rose $22.0 billion (annual rate) residential investment outlays rose $4 billion. There was a $50 billion increase in inventories following an increase of $73.8 billion in the first quarter. BILLIONS OF DOLLARS 700 SEASONALLY ADJUSTED ANNUAL RATES BILLIONS OF DOLLARS 700 600 500 400 300 - S -' _LT" _-- 1 1 1 " **" ^--""^^ I 1 1 1 f^&r}^^ t>diva TE DOMESTIC INVESTMENT -^--i /^~ h4onresidentiki ^^ XED INVESTMENT -**~ **** F _»»»*"»» »»» \ 1 1 ^ \ \ \ ^ A I I I» *' ^\ **** RESIDENTIAL FIX ED INVESTMENT I-*- J l I I ^/ NX J r~ CHANGE 1 N BUSINESS,/X _ INVEIs TORIES / "~x i i i \x*^ fs' 1 1 1 ^** 1 1 1 1984 600 500 400 300 - SOURCE: DEPARTMENT OF COMMERCE [Billions of dollars; quarterly data at seasonally adjusted annual rates] Gross private domestic investment Nonresidential fixed investment Structures Producers' durable equipment Residential fixed investment Nonfarm structures Farm structures Producers' durable equipment Change in business inventories Nonfarm 1972 1973 1974 19 229.8 228.7 206.1 257.9 324.1 386 423.0 401.9 484 414.9 471 121.0 14 156 157.7 174.1 205 248.9 290 308.8 353.9 349 352.9 44.1 51.0 55.9 55 58.8 64 78.7 98 110.9 135 142.1 129.7 76.9 92.7 102 115 140.8 170 191.9 197.9 218 207 223 63.8 68.0 57.9 55 72.0 95.8 111 118 102.9 104 91 13 61 65 54.8 52 68.8 92.0 107.0 114.0 98.1 99.8 86 127 0.7.7 1 1.0 1.1 1 1.7 1.7 1.8 1 1 1.0 1 1.7 1.8 1.9 2.1 2 2 2.9 3.0 3 3 10 18 14.1-6.9 11.8 23.0 26 14-9.8 26.0-26.1-13 9 15 16.0 10 5 13.9 21.9 25 8 4 5 18 24 0-3.1 : I II III IV 436 431 415.9 376 36 351 34 339 148.8 142.7 138 138 216.9 208 203.8 201.0 87 90.9 89.0 97.9 83 85.9 84 92 1.0 1.7 1 2.1 3-17.0 10 9-15 -61.1-20.9-9 -11.1-54 - I.. II HI IV 40 449 491.9 540.0 334 339 353.9 383.9 130 125 126 136 204 213 227.8-247 11 129.8 142 143 108.9 125 137.7 138.7 1.0.9.9.9 3 3 3.8-42.9-19 4 12.7-32 5 4 11 14.1 1984- I II r. 623.8 627.0 398.8 420.8 14 150.0 256.7 270.7 151 155 146 150.9 1.0 3.9 4.1 73.8 50 60 47.0 Source: Department of Commerce, Bureau of Economic Analysis.

EXPENDITURES FOR NEW PLANT AND EQUIPMENT According to the Commerce Department July-August survey, business spending for new plant equipment for the year 1984 is expected to be 14 percent above the level; spending for was 4.8 percent below the level. BILLIONS OF DOLLARS (RATIO SCALE) 500 SEASONALLY ADJUSTED ANNUAL RATES BILLIONS OF DOLLARS (RATIO SCALE) 500 400 400 300 300 NONMANUFACTURiNG (Surveyed Quarterly) MANUFACTURING 80 80 60 60 40 40 1984 2J SEE FOOTNOTE 4 BELOW SOURCE.-DEPARTMENT OF COMMERCE [Billions of dollars; quarterly data, at seasonally adjusted annual rates] Industries surveyed quarterly Addenda All industries Manufacturing Durable Nondurable l Mining Nonmanufacturing Public utilities Transportation Commercial other x nonfarm business 2 Nonmanufacturing Manufacturing Surveyed quarterly Surveyed annually a. 1984 4... : III... IV... : I II in... IV... 1984: I II III 4. IV 4. 150.91 1748 2034 2402 2644 2897 282.71 262 3070 2791 269.80 261.71 261.16 270.05 283.96 293.15 302.70 3162 3183 59.95 62 79.72 988 115.81 126.79 1198 1113 1309 1186 1103 109.86 108.79 111.12 1166 122.78 1277 1346 1367 287 34.04 403 51.07 58.91 61.84 564 51.78 62.73 561 501 50.74 488 53.06 54.85 58.94 600 64.82 66.98 317 35.18 39 471 56.90 64.95 633 59.75 676 615 59.72 59.12 601 58.06 610 63.84 676 694 699 90.96 1056 123.82 1414 148,63 1628 163.03 1579 1771 1616 1598 151.85 1528 158.93 1670 1707 173 181.76 181,66 74 4 101 118 131 16.86 155 11.83 13.11 147 131 12.03 10.91 11.93 123 13.95 12.13 134 13.14 8.89 90 108 125 12.09 12.05 11.95 110 126 119 123 11.04 10.88 11.00 11.86 116 12.95 12.86 128 227 26.79 29.95 33.96 354 380 41.95 42.00 443 43,02 43.00 411 418 42 429 432 441 44.06 42 57 60.03 72.99 83.85 879 957 938 927 1070 928 90.83 87.17 89.10 99 2 1015 1055 1110 110.92 1715 198.08 2314 2706 2953 3219 3163 3020 59.95 62 79.72 988 115.81 126.79 I 198 1113 1309 1186 1103 109 86 108.79 111.12 1166 122 78 1277 13446 1367 1110 18.87 1512 171.77 179.81 194.70 196.75 190.97 90.96 1056 123.82 1414 1483 1628 163.03 1579 1771 1616 1598 151 85 1528 158.93 1670 1707 173 181 76 1816 204 230 27.70 304 31.18 32.12 32 338 1 Excludes forestry, fisheries, agricultural services; medical services; professional services; social services membership organizations; real estate, which, effective with the April-May 1984 survey, are no longer surveyed quarterly. See last column ("nonmanufacturing surveyed annually") for data for these industries. 2 "All industries" plus the part of nonmanufacturing that is surveyed annually. 3 Consists of forestry, fisheries, agricultural services; medical services; professional services; 10 social services membership organizations; real estate. 4 Planned capital expenditures as reported by business in late July August 1984, corrected for biases. NOTE.For details about the reduced industry coverage of the plant equipment survey, see Survey of Current Business, January 1984. Source: Department of Commerce, Bureau of Economic Analysis.

EMPLOYMENT, UNEMPLOYMENT, AND WAGES STATUS OF THE LABOR FORCE Seasonally adjusted civilian employment fell 426,000 in August unemployment was about unchanged. MILLIONS OF PERSONS* MILLIONS OF PERSONS* 116 *16 YEARS OF AGE AND OVER SOURCE: DEPARTMENT OF LABOR [Thouss of persons 16 years of age over, except as noted; monthly data seasonally adjusted except as noted] Noninstitutional population including resident Armed Forces NSA Forces NSA T nhnr fnw including resident Armed Forces Resident Employment including resident Armed Forces Civilian labor force Civilian employment Nonagrieultural Part-time for economic reasons 1 Unemployment 15 weeks over Labor force participation rate (percent) 2 Agricultural Civilian 3 : Aug Oct Dec 1984: Jan Feb Mar Apr May June July Aug 163,541 166,460 169,349 171J75 173,939 175391 176,122 176,297 176,474 176,636 176,809 177,219 177,363 177,510 177,662 177,813 177,974 178,138 178,295 1,631,597 304 ^645,668 ^676,682,695,695,685,688,686,684,686,693,690,690,698 1,712 103,882 106,559 108*544 llo[315 111,872 113^226 113,799 113,924 113,561 113,720 113,824 113,901 114,377 114,598 114,938 115,493 115,567 115,636 115,206 97,679,421,907 102^042 101,194 102',510 103,166 103,571 103,665 104,291 104,629 104,876 105,576 105,826 106,095 106,978 107,438 107,093 106,681 102,251 104,962 106,940 108',670 110,204 11 1^550 112,117 112,229 111,866 112,035 112,136 112,215 112,693 112,912 113,245 113,803 113,877 113,938 113,494 96,048 98*824 99,303 10o',397 99,526 334 101,484 101,876 101,970 102,606 102,941 103,190 103,892 104,140 104,402 105,288 105,748 105,395 104,969 3,387 3,347 3,364 3368 3,401 3*383 3,449 3,308 3,240 3,257 3,356 3,271 3,395 3,281 3,393 3,389 3,403 3,345 3,224 92,661 95,477 95,938 97^030 96,125 97*450 98,035 98,568 98,730 99,349 99,585 99,918,496,859 101,009 101,899 102,344 102,050 101,744 3,298 3,373 4,064 4^499 5,852 5^997 5,866 6,027 5,724 5,848 5,712 5,943 5,808 5,463 5,593 5,353 5,491 5,300 5,324 6,202 g'l37 7,637 8^273 10,678 10/717 10,633 10,353 9,896 9,429 9,195 9,026 8,801 8,772 8,843 8,514 8,130 8,543 8,526 1,414 1,241 1,871 2^285 3,485 4^210 4,078 3,889 3,655 3,527 3,369 3,201 2,984 2,873 2,855 2,851 2,619 2,689 2,606 63 64.0 64.1 64 64 64 64 64 64 64 64 64 64 64 64.7 6 64.9 64.9 64 63 6 63.8 63.9 64.0 64.0 64 64.8 64.0 64.0 64.0 63.9 64.1 64 64 64 64 64 64 1 Persons at work. Economic reasons include slack work, material shortages, inability to find full- -time work, etc. 2 Labor force as percent of noninstitutional population (both including resident Armed Forces). 3 Civilian labor force as percent of civilian noninstitutional population. NOTE.NSA indicates data are not seasonally adjusted. Source: Department of Labor, Bureau of Labor Statistics. 11

SELECTED UNEMPLOYMENT RATES The seasonally adjusted overall unemployment rate, which includes resident Armed Forces in the labor force, was unchanged in August at 7 percent. The unemployment rate for all civilian workers also was unchanged, at 7 percent. PERCENT* (SEASONALLY ADJUSTED) PERCENT* (SEASONALLY ADJUSTED) 25.X* 20 TEENAGERS I (16-19) * 15 10 MEN 20 YEARS AND OVER.*%*- WOMEN 20 YEARS AND OVER 0 Illllllliill 1984 * UNEMPLOYMENT AS PERCENT OF CIVILIAN LABOR FORCE IN GROUP SPECIFIED. SOURCE: DEPARTMENT OF LABOR [Monthly data seasonally adjusted] Unemployment rate (percent of civilian labor force in group) Unemployment rate, all workers l * Men 20 years over By sex age Women 20 years over Both sexes 16-19 years White By race Black other Black All civilian workers Experienced wage salary workers Married men, spouse present By selected groups Women who maintain families Fulltune workers Parttime workers Labor force time lost (percent) 2 6.0 5.8 7.0 7 9 9 6.1 5.8 7.1 7 9.7 9 4 4 5.9 6 8.8 8.9 6.0 6 6.8 8 8.1 16 16.1 17.8 19 23 22 5 5^1 6 6.7 8 8 11.9 1L3 13.1 14 17 17.8 12.8 12 14 15 18.9 19 5 5 6.9 7 9 2.8 2.8 4 4 6 6 8 8 10 11.7 1 5 5 6.9 7 9 9 9.0 8.8 8.8 9 10 10 6 6 7.9 8 11.0 10.9 : Aug..... Oct...... Dee... 9 9.1 8.7 8 8.1 9 8.8 8 8 8.7 8 8 7.8 7 8.0 7.8 7 7 7.1 22.8 21.8 21 20 20.1 8 8.0 7.7 7 7.1 17.9 17 16.7 16.1 16 19.8 18.9 18 17.7 17.8 9.1 8.8 8 8.1 7.9 6 6.1 5 5 11.8 12.0 11 10 10.9 9 9.1 8.7 8 8.0 10 10.1 10.0 9.8 9.8 10.7 10 10.0 9.7 9 1984: Jan... Feb... Mar... Apr... May... June.. July.. Aug... 7.9 7.7 7.7 7.7 7 7.0 7 7 8.0 7.8 7.8 7.8 7 7.1 7 7 7 7.0 6.8 6.9 6 6 6 6 7.1 6.9 6.9 7.0 6.8 6 6.9 7.1 19 19 19.9 19 19.0 17 18 18 6.9 6.7 6.7 6.7 6 6.1 6 6 15 14.9 15.1 15.1 14 13 15.1 14 16.7 16 16 16.8 15.8 1 16.9 16.0 7 7 7 7 6.9 6 7.1 7.1 4.9 4.7 4.7 4 4 4 4 10.7 11.0 11.0 10 9.8 9 9 10 7.8 7 7 7 7 6.7 7 7 9 9.1 9 10 9 9 8.9 8.8 8.9 8 8 8.7 8 1 Unemployed as percent of total labor force including resident Armed Forces. 2 Aggregate hours lost by the unemployed persons on part time for economic reasons as percent of potentially available labor force hours. Source: Department of Labor, Bureau of Labor Statistics. 12

SELECTED MEASURES OF UNEMPLOYMENT AND UNEMPLOYMENT INSURANCE PROGRAMS In August, the percentages of unemployed persons who had been out of work for less than 5 weeks for 15-26 weeks rose. The percentages out of work for 5-14 weeks for 27 weeks over fell. Both the mean duration of unemployment the median duration fell. PERCENT DISTRIBUTION 70 PERCENT DISTRIBUTION* 70 REASON FOR UNEMPLOYMENT 60 50 \.* JOB LOSERS. 40 20 30 20 REENTRANTS l- 10-10 NEW ENTRANTS JOB LEAVERS 1984 1984 *SEASONALLY ADJUSTED SOURCE: DEPARTMENT OF LABOR [Monthly data seasonally adjusted, except as noted] Unemployment (thouss) Less than 5 weeks Duration of unemployment Percent distribution 1 5-14 weeks 15-26 weeks 27 weeks over Number of weeks Average (mean) Median Job losers Reason for unemployment: percent distribution l Job leavers Reentrants New entrants State programs Insured unemployment Initial claims Insured unemployment, all regular programs (unadjusted) 2 Special unemployment benefit claims (unadjusted) 3 Weekly average, thouss. 6,137 7,637 8,273 10,678 10,717 48.1 43.1 41.7 36 3 31.7 32 30.7 31.0 27 11 13.8 13 16.0 15 8.7 10.7 14.0 16 23.9 10.8 11.9 1 15 20.0 5 6 6.9 8.7 10.1 42.9 51.7 51 58.7 58 14 11.7 11 7.9 7.7 29 25 25 22 22 1 11 11.9 11.1 11 2,434 3,350 3,047 4,061 3,396 388 488 460 583 438 2,592 3,837 3,410 4,594 3,775 - Aug Oct. Dec 10,633 10,353 9,896 9,429 9,195 34.1 35.9 35 35.1 36 27.7 26.7 27 27 27.1 1 1 13.9 14.1 13.9 2 24.1 23.1 23.1 22 19.9 20 20.1 20 19 9 9 9 9 9.0 57.7 57.1 56 5 54.1 7 8 8.7 9.1 2 22.7 23 2 24 11 11.9 11 12.1 12 3,025 2,893 2,797 2,734 2,636 410 386 389 388 389 2,917 2,580 2,478 2,620 2,915 737 655 522 901 731 1984: Jan Peb Mar Apr May June July Aug 9,026 8,801 8,772 8,843 8,514 8,130 8,543 8,526 36.0 38.1 38 39.1 38.0 3 40.1 41.9 28 28.1 28.9 28 28 28 28.8 27 13.0 1 12.7 12 13.9 12 12.7 13.1 22 20 20.0 19.8 19 19.9 18 17 20 18.8 18.8 18 18 18 18.1 17 8 8 8.1 8.7 7 7 7 53 54.1 52 51 50.9 51.9 52.7 49.8 9.0 8.8 8 8.8 9 9.8 10.1 9.9 24 24 25.1 26.1 25 24 24 27 13.1 12 13.8 13.8 14.0 14.0 12.8 12.9 2,615 2,528 2,498 2,449 2,369 2,335 2,361 2,326 368 349 354 361 350 354 373 365 3,374 3,174 2,958 2,613 2,290 2,166 2,327 584 489 444 401 374 352 342 322 1 Detail may not add to percent because of rounding. 3 Federal supplemental compensation program. 2 Hf^i 68 l ta, te (50 TT States ' District of Columbia, Puerto Rico, Virgin Isls), ex-service- Source. Department of Labor (Bureau of Labor Statistics Employment Training Adminismen (UCX), Federal (UCFE), railroad (RR) programs. Also includes Federal State ex- tration). tended benefit programs. Does not include Federal supplemental compensation program. 13

NONAGRICULTURAL EMPLOYMENT nonagricultura! employment as measured by the payroll survey rose 159,000 in August. MILLIONS OF PERSONS* MILLIONS OF PERSONS* (ENLARGED SCALE) 22 90 80 ALL NONAGRICULTURAL ESTABLISHMENTS 70 60 SERVICE-PRODUCING INDUSTRIES 50 30 - GOODS-PRODUCING - INDUSTRIES 4-20 litiinilin I II Mill III h 1984 1984 *SEASONALLY ADJUSTED SOURCE: DEPARTMENT OF LABOR [Thouss of wage salary workers; l seasonally adjusted] 2 Goods-producing industries Manufacturing Durable nonagricultural U 1 employment Construction Nondurable Transportation public utilities Wholesale trade Sendee-producing industries Retail trade Finance, insurance, real estate Services Government Federal 86^697 89,823 90,406 91,156 89,566 90,138 25,585 26,461 25,658 25,497 23,813 23,394 4,229 4,463 4^346 4,188 3 ',905 3,940 20,505 21,040 20*,285 20,170 18/781 18,497 12,274 12,760 12487 12,109 ll',039 10,774 8,231 8,'280 8*098 8,061 7*741 7,724 61,113 63^363 64J48 65,659 65*753 66,744 4,923 5,136 5*146 5,165 5*082 4,958 4,969 5,204 5*,275 5,358 5*278 5,259 14,573 14,989 15*X)35 15,189 15479 15,545 4,724 4,975 5, 5,298 5,341 5,467 16,252 17,112 17,890 18,619 19,036 19,665 15,672 15,947 16,241 16,031 15,837 15,851 2,753 2,773 2,866 2,772 2,739 2,752 : Aug...... Oct... Dec 89,918 91,018 91,345 91,688 92,026 23,532 23,669 23,895 24,058 24,198 3,985 4,019 4,044 4,073 4,086 18,597 18,698 18,886 19,018 19,143 10,846 10,923 11,071 11,170 11,266 7,751 7,775 7,815 7,848 7,877 66,386 67,349 67,450 67,630 67,828 4,369 5,046 5,053 5,043 5,055 5,277 5,301 5,322 5,344 5,371 15,626 15,671 15,737 15,805 15,857 5,498 5,503 5,512 5,530 5,546 19,808 19,893 19,962 20,034 20,130 15,808 15,935 15,864 15,874 15,869 2,747 2,774 2,760 2,759 2,762 1984: Jan Feb Mar Apr May... June r. July r.. Aug P.. 92,391 92,846 93,058 93,449 c 93,786 94,135 94,351 94,510 24,383 24,577 24,595 24,760 24,851 24,974 25,068 25,112 4,154 4,226 4,151 4,246 4,286 4,343 4,350 4,357 19,254 19,373 19,466 19,530 19,570 19,629 19,711 19,740 11,343 11,440 11,513 11,551 11,598 11,652 11,709 11,763 7,911 7,933 7,953 7,979 7,972 7,977 8,002 7,977 68,008 68,269 68,463 68,689 c 68,935 69,161 69,283 69,398 5,095 5,105 5,112 5,129 5,144 5,163 5,173 5,182 5,406 5,438 5,457 5,473 5,492 5,502 5,527 5,559 15,914 15,980 16,030 16,095 16,166 16,245 16,278 16,298 5,573 5,593 5,613 5,640 5,662 5,676 5,679 5,692 20,162 20,278 20,378 20,449 20,549 20,681 20,686 20,732 15,858 15,875 15,873 15,903 c 15,922 15,894 15,940 15,935 2,760 2,763 2,770 2,771 C 2,785 2,777 2,779 2,780 1 Includes all full- part-time wage salary workers in nonagricultural establishments who worked during or received pay for any part of the pay period which includes the 12th of the month. Excludes proprietors, self-employed persons, domestic servants, personnel of the Armed Forces. derived from this table not comparable with estimates of nonagricultural employment of the civilian labor force, shown on p. 11, which include proprietors, self-employed persons, domestic servants; which count persons as employed when they are not at work because of industrial disputes, bad weather, etc., even if they are not paid for the time off; which are based on a sample of the working-age population, whereas the estimates in this table are based on reports from employing establishments. ^ Includes mining, not shown separately. Source: Department of Labor, Bureau of Labor Statistics. 14

AVERAGE WEEKLY HOURS AND HOURLY EARNINGS PRIVATE NONAGRICULTURAli INDUSTRIES [For production or nonsupervisory workers; monthly data seasonally adjusted, except as noted] Average weekly hours Average gross hourly earnings Adjusted hourly earnings index total private nonagricultural 2 private nonagrieultural l Manufacturing Overtime private nonagrieultural 1 Manufacturing Current dollars Index, dollars s Percent change from a year earlier 4 5 Current dollars dollars............. 36.1 36.1 36.0 35.8 3 35 35 34.8 3 39 40.1 40 40 40 39.7 39.8 38.9 40.1 2 3.1 3 3 2.8 2.8 2 3.0 143 4.86 55 59 6.16 66 75 78 8.02 $4.83 52 58 6.17 6.70 77 7.99 89 8.83 86.7 92.9 108 116.8 127 138.9 148 155,3 97 99.0 97 93 92 93 94.8 8 7 7 8 7.9 9.0 9.1 6.9 4-0.7 1 1.0-3.1-4.0 1.0.9 1 : Aug Oct Dec.... 3 35 35 35 35 40 40.7 40 40 40 3.0 3 3 8.00 8.09 8.13 8.14 8.17 8.84 8.88 8.93 8.97 8.99 155 156 157.1 157 157.8 94 94 94.7 94 94.9 4.0 4.1 3.9 1 1 1 1.0 1984: Jan Feb Mar.. Apr May June r. July 1 ". Aug p 35 35 35 35 35 35 35 35 40.9 40.9 40.7 41.1 40 40 40 40 3 3 3 3 81 83 85 81 89 83 85 85 9.03 9.06 9.09 9.11 9.12 9.15 9.16 0 158 158 159.1 159.9 159.8 94.8 94.8 95.1 95 94.9 95 95 94.1 3 3 3 3 -.0 -.0.1 g AVERAGE WEEKLY EARNINGS PRIVATE NONAGRICULTURAL INDUSTRIES [For production or nonsupervisory workers; monthly data seasonally adjusted, except as noted] Current dollars private nonagricultural l dollars 3 Average gross weekly earnings Manufacturing Construction Retail trade Current dollars Percent change from a year earlier, total private nonagricultural 5 Current dollars dollars.... $1633 1755 189.00 219.91 235.10 2550 2676 280.70 $184.16 186.85 189.00 1891 1831 172.74 170.13 168.09 1717 $190.79 2092 228.90 247 2694 2882 318.00 3306 354.08 $266.08 283 2955 3189 342.99 367.78 396 426.82 4432 $108.86 1140 1216 1300 1382 1478 158.03 163.85 171.05 7 7.7 7.8 8.0 6.9 8 4.7-3.1 1 1-3.1 5.8-1 -1 2.0 : Aug Get Dee. 280.00 284.77 286.18 2863 2878 170.01 177 1721 1720 172.93 3565 3612 3626 364.18 364.99 4430 448.13 4409 4411 4412 171.95 1724 174.00 1740 1765 3 6.0 6 5 1.1 3 2 2 1984- Jan Feb Mar... Apr May June r. July r Aug p 2903 2902 2913 294.17 2924 294.05 293.92 293.92 173.93 1735 174.08 1752 173.98 1741 173.92 172.19 3693 3705 369.96 3742 3707 3719 370.98 3718 4517 4569 442.89 4533 454 4575 450.75 4549 178 1750 1769 176.70 1769 177.88 176.11 175.81 5 6 5 6 4.7 4.8 4.8 1.8 2 1.8 3.0 1 1.7 1 1 1 Also includes other private industry groups shown on p. 14. 2 Adjusted for interindustry employment shifts for overtime in manufacturing. 3 Current dollar index (or earnings) divided by the consumer price index on a = 1 Revised index for urban wage earners clerical workers used beginning, 4 Monthly changes based on indexes to two decimal places. 5 Based on unadjusted data. Source: Department of Labor, Bureau of Labor Statistics. 15

PRODUCTIVITY AND RELATED DATA, BUSINESS SECTOR Output per hour of all persons Business sector Nonfarm business sector Business sector Output l Nonfarm business sector Hours of all persons 2 Business sector Nonfarm business sector Compensation per hour 3 Business sector Nonfarm business sector Real compensation per hour 4 Business sector Nonfarm business sector Business sector Unit labor cost Nonfarm business sector Implicit price deflator 5 Business sector Nonfarm business sector = ; quarterly data seasonally adjusted 1970 1971 1972 1973 1974 86 89 92 94.8 92 86.8 89.7 93.0 95 92.9 78 80.7 86.1 91.7 89.9 78.0 80 85.8 91.7 89.8 90.9 90 93 96.8 97 89.8 89 9 96 96 58 62.0 66.1 71 78.1 58.7 62 66.7 71.8 78 90.8 92.8 9 97 95.9 91 93 96 97.9 96 67 69 71 75 84 67 69.7 71.7 75 84 66.0 69.0 71 75 82 66 69 71 74.0 81... 94 97 99 94.8 97.8 99.0 88 93.8 105 107.8 87.8 9 10 108.0 93 96.0 104.9 108 92 95.8 105.1 109.0 85 92.9 108 118.7 86.1 93.0 108 118 96 98.9.8 99.1 96.9 99.0.8 98.8 90 95.1 108.0 119 90.8 95.1 108.0 119 90 94.7 107 117 90.0 94 107.1 116 98.8.7.9 10 98 99.8 103,4 106 10 106 111.0 106 108.7 105.9 111 107.8 108 105 107.1 108 109.0 106.0 107 131.1 143 15 161.7 130 143.1 154 162.0 96 95 97-98 96.0 95 97.0 98 132 142 153 156.0 132.8 143 154 156 128.1 140 147.9 152 128.1 140 148 153 - I. n miv.9.9 101 99.8 99 107.1 106 106.1 105.8 106 106.0 106.0 105 106.1 106.1 105.1 104.1 106.7 106.7 10 104.7 151 153.9 156.7 158 151.0 153 156.0 157.9 96.9 97 97 98.0 96.7 96.8 96.9 97.7 150.0 153 155 155.9 151 154 155 157.1 145.9 147.9 148.7 149 146 148 149 150 : I nm IV 10 103 104 104.7 101 103 104.1 104 106.9 110.1 112 114.7 106.7 110 112.7 115 104.7 106 107.9 109 105.1 106 108 110 161.0 161.8 164.1 161 162 164.0 99.0 98 98.0 98 99.0 98.8 98 98 156.8 155 155.1 156.8 157 155.9 155.9 157.1 151.0 151.7 152.7 154 151.9 152.7 153.8 155 1984: I n 10 106.8 105 106 117.8 120.7 118.0 120.8 111 113.0 112 113 166.7 167 166 168.0 98 98 98 98 157.7 156.9 158 158.0 155 156.7 156 157 Percent change; quarterly data at seasonally adjusted annual rates 1970 1971 1972.... 1973 1974 0.8 3 3 2-2 0 2-2 -0.8 3.0 6 6-2.0-1.0 2.9 6.9 6.8-2.0-1 5 3.0 3.9-1 3.1 4 7 6 6 8.0 9 7.0 6 6.7 7 9 1 3.1 1-1 1.0 1 1 6 2.9 2.9 5 12.1 6 3.1 2.8 1 4 4 3 5 9 4.8 4 3.0 3.8 10... 2 1 2.0 3-1 -2.0 6 6 5 2-6.7 6.7 4 1 3.0 4.1 4.9 3 4 1 3 4 5.1 9 8 7.7 8 9 9 8.1 7 8 9.0 2.8 1.8-1.7 1.0.8-2.0 7 5.1 5.1 8.0 10.7 7 4.7 5 8.0 10.7 9.8 4.7 5 7 9.0 10 5.1 7.1 8.8...... 1.9 2.7 -.7 1 3-1 2-2 4-1 2.1-2 -.7-2.8 1.7 6 28 1 10 9 8.1 4 10 9 8.0 4.9-2.7 -.9 1.9 1.1-2.8 -.7 1.7 1 11.0 7 7.9 1 11.1 8.0 7.7 1 9 9 5 3.0 10.0 9.8 3 - I nmiv 2-2 2 2.7 2-1 3 1.1 3 6-2 -1-1 -3.8-1 ^ -3X) -5.9 - -3-3.8-6.1-3 -4.0 10.7 6.8 7 4 10 5.9 7 5.1 6.7 1 2.9 6 3 8.0 9 1.7 7.9 7 4.0 5 2 1.8 3.8 2.0 2 : I nin IV 2.1 5.9 2.8 1 4 8.1 2.1 1.0 4 12 9 7.8 6.0 14 8.7 9.1 6.1 6 6 1 6 8.0 4 2.0 6.1 3 4.1 4.1-2.1-2.1 1 5 -.8-1.9 - -3 -.8 4 1-4.1 3.0 4 1.9 2 4.1 4 2.7 1984: I n 4.0 4.0 2.9 4.7 11 10.1 10 9 7 5.8 7 4.7 6 1.9 6.1 1-1.7 1.0 0 2.1-2.0 3.1 -.9 2.7 2.8 2 1 Output refers to gross domestic product originating in the sector in 1972 dollars. 2 Hours of all persons engaged in the sector, including hours of proprietors unpaid family workers. Estimates based primarily on establishment data. 3 Wages salaries of employees plus employers' contributions for social insurance private benefit plans. Also includes an estimate of wages, salaries, supplemental payments for the selfemployed. 4 Hourly compensation divided by the consumer price index for all urban consumers. 5 Current dollar gross domestic product divided by constant dollar gross domestic product. NOTE.Data relate to all persons engaged in the sector. Percent changes are from preceding period are based on original data; they therefore may differ slightly from percent changes based on indexes shown here. Source: Department of Labor, Bureau of Labor Statistics. 16

PRODUCTION AND BUSINESS ACTIVITY INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION Industrial production rose 0 percent in August following an increase of 0.9 percent in July. The index for August was 9 percent above its year earlier level. INDEX, 1967 = * (RATIO SCALE) INDEX, 1967 = * (RATIO SCALE) 180 TOTAL INDUSTRIAL PRODUCTION 180 -UTILITIES AND MINING PRODUCTIOI UTILITIES 140 120 140 120 \t MINING 1984 180 MANUFACTURING PRODUCTION --* +~~ ~ -,-. NONDURABL N,-»" \ / \»*"*JV"»«** 140 120 \/ > V Illllllllll ~~\ DURABLE Illllllllll ~->, Illllllllll / s Illllllllll *SEASONALLY ADJUSTED SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM ^ - Illllllllll 1984 PERCENT* 13 III! Ill 11 1984 90 r-manufacturing CAPACITY UTILIZATION RATE 80 70 60 I 1984 [Monthly data seasonally adjusted] industrial production Industry production indexes, 1967 = Manufacturing Capacity utilization rate, percent (Federal Reserve series) l Imlex, 1967^= Percent change from year earlier Durable Nondurable Mining Utilities Manufacturing Industrial materials 1967 ptopottion 1974, : Aug Oct Dec 1984- Jan Feb Mar Apr May r June r July r. Aug p 0 129 117.8 130 138 146.1 152 147.0 151.0 138 147 151.8 153.8 15 155 156 158.0.8 162.1 162.8 164 165.8 166-0 8.9 10.8 5.9 4-3 2.7 82 6 9.7 12.0 14 15.1 15 15 15.9 14.9 1 12.7 1 10.8 9 87. 95 129 116 130 138 146.8 153 146.7 150 137 148 152.8 155.1 156 156 156.8 159 161 162.1 163 164 165 167 167 51.98 12 109 122 130.0 139.7 146 136.7 140 124.7 134 138.8 141 142.8 143 14 148 150 151 152 15 154.9 157 157 35.97 134 126 141.8 150 156.9 164.0 161 164.8 156 168.1 172.9 174 175 174.8 173.9 175 177 177 179.1 179.9 180.9 181.8 18 66 115 112.8 114 118 124.0 125 132.7 14 126.1 116 116.1 117.1 118 121.1 12 124.8 124.1 123.8 12 12 126.8 129 129.1 59 14 146.0 151.7 156 161 166.0 168 169.1 168.7 172 179 179 176 176 182 181.0 176 180.0 182.7 182 184 182 18 8 72.9 79 8 84.7 86.0 79 79 71.1 75 77 78 78.9 78.8 78.9 80.1 80.9 81.0 81 81.7 82.1 82.8 82.8 87.0 7 81.1 82 85 87 80 80.7 70.1 75 77 78 79 79 79 80 81.9 8 82 82.7 83.0 83 83 1 Output as percent of capacity. Source: Board of Governors of the Federal Reserve System. 17

INDUSTRIAL PRODUCTIONMAJOR MARKET GROUPS AND SELECTED MANUFACTURES [1967 = ; monthly data seasonally adjusted] 1967 proportion 1974.... : Aug.. Oct.. Dec 1984: Jan. Feb Mar Apr May r June r July r. Auff p Products Final products 47.82 125.1 118 127 135.9 14 147 145 149 141 147.1 150.7 152.1 152.7 153 155 157 158.0 158 161.1 163.0 164.7 16 Consumer.' 278 128.9 124.0 137.1 145 149.1 150.8 145 147.9 142 151.7 156 157 156.9 156.1 157.7 159 159 161 161.7 162.7 163.9 163 Durable 7.89 135 121 141.9 154.0 15 155.8 136.7 140 12 147 154 157 156.7 155.9 158 163 162 163.1 16 161 16 164.8 163 Nondurable 19.79 126 125.1 135 141.9 145.1 148.8 148.9 150.9 148.0 153 157.1 157 157.1 156.1 157 157.9 158 159.1 161.1 161.8 162 163 16 Equipment 20.14 120.0 110 114 123.0 132.8 14 145 151.8 139.8 140.8 143.1 144.9 147.0 149.1 151.8 154.9 156.1 156 158 16 165.8 167 Business 123 142 128 135 147.8 171 173 181.1 157.9 15 156 158.7 161 164.1 167 170.7 171.9 172.1 173 176 180.8 184.1 186.1 Defense space equipment 71 82 80.0 79.8 81 86 93 98 102.7 109 119.9 120 121.8 122.9 124.0 12 128 129 130.1 133 133.1 134.0 135.1 136.1 Intermediate products 12.89 135 123.1 137 145.1 154.1 151.9 154 14 156 16 165 166 165 165 167.8 169.0 170 171.0 171 173.1 17 174 Construction supplies 62 134 116 132 140 151.7 158.0 140.9 141.9 124 142 149.0 151 152 151 151 155 156 159.1 159 159.9 161 161.7 Business supplies 67 136.0 129.7 141.7 149 156 163.1 162.8 166.7 162.1 170.7 175 179 180 179 179 180.1 181 181 182 183 185 186.0 Materials 39 132 115 131.7 138 148 156 147 151 13 145 149.7 15 154.0 154 154 156 159 161 162.0 163.0 164 164.9 Supplementary group: Energy total 13 125 125 129.1 132.9 135 137.9 137.7 137 13 135.9 139 139.1 137.7 138 141.1 141 141 141.9 142.8 14 144 144.0 144 [1967 = ; monthly data seasonally adjusted] 1967 proportion 1974 : Aug.. Oct... Dec. 1984: Jan Feb Mar Apr May r... June r July r. Aug p. Durable manufactures Primary metals 67 123.1 96 109.7 111.1 119.9 121 102 107.9 75 85 87 90 95 9 90 93 98 97 99 98 97 96.9 94.0 Iron steel 41 119.8 95.8 104.8 103.8 113 113 92 99.8 61.7 71 75.1 78 84 7 74.1 80.7 86.0 84 84.0 83 83 80.7 Fabricated metal products 5.93 124 109.9 123.9 131.0 141 148 134.1 136 114.8 120 126.0 127 126.9 128 12 131.7 132.8 134.9 135 136 138.7 139 140 Nonelectrical machinery 9.15 140.1 125.1 134 143 153 16 162.8 171 149.0 150 157 158 15 161.8 164 169 170.9 171.9 174.9 178.8 182.1 18 187.7 Electrical machinery 8.05 143.8 116 134.8 145 159 17 172.8 178 169 185 18 195.8 198.1 201 206 209.9 212.0 214 214 216 222 223.8 Transportation equipment 7 108.7 97 111.1 12 132 135 116.9 116.1 104.9 117.8 121.1 124.7 125 127 130.8 134.9 135 135.8 134 13 137 140 140.0 Motor vehicles parts 40 128 111.1 142.0 161.1 169.9 159.9 119.0 122 109.8 137.1 144 150.9 150.9 152.9 158.9 166 164 165.8 161.9 163.0 165 169.1 167 Lumber products 14 116 107 123 131 136 136.9 119 119.1 112 137 141 142 141.7 141.0 143.8 146.0 145 149 151 146 148 147 Nondurable manufactures Apparel products 1 114 107 12 134 134 134 127.0 120 Printing publishing 4.72 118 11 122 127 131 136.9 139 144 144.1 152 157.8 161.7 162.7 162.0 161.7 163 164.8 165 166 167 168.8 171 172 Chemicals products 7.74 159 147 170.9 18 197 211.8 207.1 215 196.1 21 220 224.1 228 225 221.1 221 224.8 22 228 227.9 229.0 231.9 Foods 8.75 124.0 123 133.0 138.8 142.7 147 149 152.1 151.1 156 159 158 157 157.1 157.7 159.0 161 163.1 164 165 Source: Board of Governors of the Federal Reserve System. 18

NEW CONSTRUCTION [Monthly data seasonally adjusted] Private Construction contracts 2 new construction expenditures 1 Residential New housing units Commercial industrial Other Federal, State, local value index ( = ) Commercial industrial floor space (millions of square feet) Billions of dollars. 151.1 173.8 205 230 230.7 239.1 230.1 26 112.0 13 159.7 181 17 185.8 179.1 211 60 81.0 93 99.0 87 86 74.8 111.7 47 6 75.8 78 63.1 62.7 51.9 86.1 Annual rates 19.9 22 29 39.9 43.8 51 54 48.7 31 3 36.7 42.7 44.7 47.9 49.7 51.0 39.1 38 45.9 48.8 5 5 51.0 50.8 79.0 114.0 122.0 107.0 110.0 112.0 138.0 592 739 977 1,059 904 919 690 750 Annual rates : July Auir Oct Dec 1984: Jan Feb Mar.... Apr r May r June r July r.. Aug* 272 278.0 281.7 267.9 267.0 263.9 280.9 300 309.7 308 316 315 311 311.7 220 224.7 229 21 217 21 230.0 248.1 25 254.1 261 257.8 25 255 120.9 126.8 128 118 113 109.7 121.9 137 141.1 136 138 136 135 135 91 93.9 93.8 94 94.9 9 96.9 102 102 102.7 106 10 105.1 106.8 48 50.0 49.8 47.8 49.8 49 53.9 56.0 59 61.0 64.9 63.0 62.1 63 50.7 47.9 51 52.8 54 54.0 54.1 54.7 54 56 57.9 58 57 56 52.0 5 52.1 48.8 49 50 50.9 52 54.8 54 55 57 56 56 137 154 143 139 145 134 150 150 144 145 165 148 152 151 741 783 830 856 884 803 931 751 884 960 1,013 888 957 1,011 1 Includes nonhousekeeping residential construction additions alterations, not shown sep- for floor space. ra e 2 /'W. Dodge S series. Relates to 50 States beginning 6 S 1969 for value index beginning S g 1971 Sources: Department of Commerce (Bureau of the Census) McGraw-Hill Information Systems Company, P. W. Dodge Division. NEW PRIVATE HOUSING AND VACANCY RATES [Thouss of units or homes, except as noted] New private housing units Units started, by type of structure 1 unit 2-4 units 5 or more units Units authorized Units completed New private homes Homes sold Homes for sale at end of period 1 Vacancy rate for rental housing units (percent) 2 1,537 1,987.1 2,020 1,745.1 1,29 1,084 1,06 1,703.0 1,162 1,450.9 1,43 1,194.1 85 705 662 1,067 85.9 121.7 12 122.0 109 91.1 80.0 113 28 414 462.0 429.0 330 287.7 319 522.0 Seasonally adjusted annual rates 1,296 1,690.0 1,800 1,551.8 1,190 985 1,000 1,605 1,377 1,657.1 1,867 1,870.8 1,501 1,26 1,005 1,390 646 819 817 709 545 436 412 623 353 402 414 3 398 336 272 251 300 5 5 5 5 5 : Aug Oct Dec. 1984- Jan Feb Mar Apr May June r July r Aug p 1,873 1,679 1,672 1,730 1,694 1,980 2,262 1,662 2,015 1,794 1,877 1,763 1,537 1,124 1,038 1,017 1,074 1,021 1,301 1,463 1,071 1,196 1,131 1,084 1,001 904 109 115 96 130 133 114 148 137 169 116 107 120 116 640 526 559 526 540 565 651 454 650 547 686 642 517 1,671 1,540 1,650 1,649 1,602 1,799 1,902 1,727 1,758 1,745 1,768 1,565 1,506 1,716 1,512 1,567 1,445 1,489 1,606 1,565 1,590 1,654 r l,756 1,731 1,677 558 597 624 636 755 681 712 682 649 615 630 630 296 299 301 304 300 302 303 320 328 333 340 342 5.8 5 5 5 1 Seasonally adjusted. 2 Quarterly data entered in last month of quarter. Series beginning not strictly comparable with earlier data. 3 New series beginning March. NOTE.Units authorized beginning relate to 16,000 permit-i 1973-77 are for 14,000 places. Source: Department of Commerce, Bureau of the Census. suing places; data for 19

BUSINESS SALES AND INVENTORIESManufacturing Trade Manufacturing trade sales fell 0 percent in July inventories rose $4 billion. According to advance data, retail sales fell 0.8 percent in August following a decline of 2.0 percent in July. BULKDNS OF DOLLARS* (RATIO SCALE) 600 _ 550 500 450 ^~~ 400 350 r-,- 300 - ^ n r-*>- * i *r^ / MANlJFACTURINC»AND TRA DE 1NVENTORIES»»*" / MA NUFACTURIhsia AND TRADE SAlES ^* BULKDNS OF DOLLARS* (RATIO SCALE) 150 140 RETA1L INVENTOR 130 V E 120 ^-**ntju- i I^-^- x ^*^**^ i^» no L- ^" ^«* 90 80 70 _ - ~-*l~"'~ R ETAIL SALES X ^ - - 250 60 50 Ilillllllll Ilillllllll Ilillllllll llllllllill Ilillllllll 150 TOO MllllllMI iililllilil limlllllii iimlimi imilmii RATICy 1.80 _ INVENTORY-SALES RATIO 10 10 10 11 II ill Mil 1984 ^"""' llilllillil %,.. " «r %- RETAIL HllllllMl MAhsJUFACTURING / ^ND TRADE 1984 1 1 1 1 1 1 1 i 1 1 Ml 1 1 1 1 1 1 11 1 1 I 1984 "SEASONALLY ADJ JSTED 5OURCE: DEPARTMENT OF COMMERC E" Manufacturing trade * Sales 2 Inventories 3 Sales 2 Wholesale Inventories 3 Sales 2 Durable stores Nondurable stores Retail Inventories 3 Durable stores Nondurable stores Inventory-sales ratio 4 Manufacturing trade l Retail Millions of dollars, seasonally adjusted. 204,277 229,624 260,263 297,565 327,113 355,762 343,504 367,096 318,544 351,055 398,457 449,542 491,431 523,623 505,546 514,336 50,694 55,987 66,117 78,680 92,658,673 94,765 98,649 64,078 72,311 85,568 98,008 111,792 115,854 115,563 118,067 54,781 60,435 67,242 74,948 80,064 86,960 89,547 97,831 18,150 20,724 23,211 25,179 24,365 26,306 27,041 32,095 36,631 39,711 44,031 49,770 55,699 60,654 62,506 65,735 79,273 89,530 102,504 110,592 115,550 125,710 125,384 135,843 37,841 43,135 49,858 53,413 53,952 58,559 56,748 63,447 41,432 46,395 52,646 57,179 61,598 67,151 68,636 72,396 18 16 14 13 15 13 10 17 18 10 13 14 11 19 19 13 : July Aug Oct Dec 370,181 373,283 379,229 382,457 386,564 395,682 501,379 504,284 506,984 509,171 511,453 514,336 99,941,894 102,171 104,210 103,793 106,892 114,124 114,227 115,674 116,825 116,958 118,067 98,832 98,277 99,537,923 101,896 102,438 32,597 31,951 32,905 33,882 34,641 35,532 66,235 66,326 66,632 67,041 67,255 66,906 129,556 130,983 132,142 132,777 134,622 135,843 58,614 59,400 60,627 61,048 62,441 63,447 70,942 71,583 71,515 71,729 72,181 72,396 15 15 14 13 12 10 11 13 13 12 12 13 1984: Jan Peb Mar ADF May June r July" Aug p 401,133 398,815 401,905 405,880 412,725 414,124 411,738 518,062 527,216 532,766 541,060 545,912 546,834 551,240 110,125 108,328 109,553 111,043 115,112 114,401 114,099 119,201 120,411 121,477 123,785 124,368 123,994 126,226 106,602 105,482 103,873 107,505 108,237 109,322 r 107,142 106,232 37,127 36,909 35,306 37,436 37,912 38,687 r 37,375 36,569 69,475 68,573 68,567 70,069 70,325. 70,635 r 69,767 69,663 137,977 142,731 143,910 146,883 146,951 145,359 145,053 63,749 66,513 66,946 69,010 68,277 66,896 66,014 74,228 76,218 76,964 77,873 78,674 78,463 79,039 19 12 13 13 12 12 14 19 15 19 17 16 13 15 1 See page 21 for manufacturing. 2 Monthly average for year total for month. 3 Book value, end of period, seasonally adjusted. 4 For annual periods, ratio of weighted average inventories to average monthly sales; for monthly data, ratio of inventories at end of month to sales for month. Source: Department of Commerce, Bureau of the Census. 20

MANUFACTURERS' SHIPMENTS, INVENTORIES, AND ORDERS In July, manufacturers 1 shipments, inventories, orders rose. According to advance data for August, durable shipments rose new orders fell. BILLIONS OF DOLLARS* (RATIO SCALE) 240 BILLIONS OF DOLLARS* (RATIO SCALE) 360 320 - INVENTORIES 280 240 TOTAL" DURABLE GOODS 120 80 - NONDURABLE GOODS BILLIONS OF DOLLARS* (RATIO SCALE) - NEW ORDERS 120 80 60 40 ^7^ -v,-s 1! iimlimi 'SEASONALLY ADJUSTED ^*-.»^ ^.. Illllllllll SOURCE: DEPARTMENT OF CO/AMERCE r~ TOTAL DURAE1LE GOODS- ^--'-v- ^*% ( -*"^-N~./ Ilillilllll >.. ^ NONDURAI IE GOODS miiliim miihim 1984 60 40 RATIO* INVENTORY-SHIPMENTS RATIO 2.0 1.8 1 1 1 illilllmii 1 I 1984 Manufacturers' shipments * Durable Nondurable Manufacturers' inventories 2 Durable Nondurable Manufacturers' new orders * Durable Capital industries, nondefense Nondurable Manufacturers' unfilled orders 3 Manufacturers' inventojy-~ shipments ratio 4 Millions of dollars, seasonally adjusted.......... - July AMS Oct Dec 98,802 113,202 126,905 143,936 154,391 168,129 159,193 170,617 171,408 174,112 177,521 177,324 180,875 186,352 50,689 59,267 67,848 76,060 77,550 83,872 76,859 85,126 85,076 86,730 88,963 89,181 92,311 96,351 48,113 53,935 59,057 67,876 76,841 84,257 82,334 85,491 86,332 87,382 88,558 88,143 88,564 90,001 175,193 189,214 210,385 240,942 264,089 282,059 264,599 260,426 257,699 259,074 259,168 259,569 259,873 260,426 112,581 121,601 137,825,451 174,552 186,053 175,009 171,571 169,679 170,283 170,084 170,219 170,656 171,571 62,612 67,613 72,560 80,491 89,537 96,006 89,590 88,855 88,020 88,791 89,084 89,350 89,217 88,855 99,543 115,032 131,546 147,403 156,161 167,761 157,389 173,433 174,451 176,360 180,336 182,911 186,606 188,374 51,398 61,082 72,339 79,451 79,360 83,562 75,129 87,806 87,878 88,820 91,509 94,776 97,991 98,444 12,799 15,291 19,458 23,231 23,259 24,050 20,681 22,764 22,060 22,887 25,295 25,499 24,680 24,893 48,145 53,950 59,207 67,953 76,801 84,199 82,260 85,627 86,573 87,540 88,827 88,135 88,615 89,930 182,499 203,475 259,755 301,982 323,312 318,794 296,147 330,122 311,718 313,967 316,782 322,369 328,099 330,122 19 11 17 17 16 14 1.73 12 10 19 16 16 14 10 1984: Jan Feb Mar ADI*, May T J June July r Aug p... 184,406 185,005 188,479 187,332 189,376 190,401 190,497 95,283 96,297 96,990 95,697 97,944 99,042 98,229 226 89,123 88,708 91,489 91,635 91,432 91,359 92,268 260,884 264,074 267,379 270,392 274,593 277,481 279,961 171,549 173,203 175,751 177,993 180,578 182,452 184,501 89,335 90,871 91,628 92,399 94,015 95,029 95,460 188,671 191,336 196,477 189,715 193,680 190,620 193,759 99,439 102,345 105,183 98,317 102,256 99,171 101,426,481 25,093 27,018 26,860 25,885 28,958 28,029 27,340 25,606 89,232 88,991 91,294 91,398 91,424 91,449 92,333 334,385 340,725 348,717 351,099 355,398 355,625 358,872 11 13 12 14 15 16 17 1 Monthly average for year total for month. Shipments are the same as sales. 2 Book value, end of period. 3 End of period. 4 For annual periods, ratio of weighted average inventories to average monthly shipments; for monthly data, ratio of inventories at end of month to shipments for month. Source: Department of Commerce, Bureau of the Census. 21

PRODUCER PRICES PRICES In August, the producer price index for all finished fell 0.1 percent, seasonally adjusted. Prices of finished consumer foods also fell 0.1 percent prices of other finished consumer fell 0 percent. Prices of capital equipment rose 0 percent. INDEX, 1967= TOO (RATIO SCALE) 320 300 280 260 240 220 180 - FINISHED GOODS SEASONAL ADJUSTED CQNSUMER GOODS, -$. ^»»w«^^ ^' " ^ ^x** ^-"'~ * sy TOTAL FINISHEC GOODS.<&* <-:; CV/^I I irmh.l'"* IT/"N/"\rve»^ ^^>«^CAPITAL EQUIPMENT "~ INDEX, 1967= (RATIO SCALE) 320 300 "**J5. sas*- 8 *""^ «,P*^ p^b r^%^'~ ~ 280»*^* 260 CONSUMER f OODS 240 220 180 140 JJI III IliiL 1 1 M 1 1 i 1 1 1 1 1 1 1 1 1 1 1 II II lliilhllll illllli MM illilllllll IMIlllIM 1 1 1 1 i 1! 1 M II IMIlllllll 1984 140 SOURCE: DEPARTMENT OF LABOR [1967 = ; monthly data seasonally adjusted] Finished Intermediate materials Crude materials finished Consumer foods Finished excluding consumer foods Consumer Durable Nondurable Capital equipment finished consumer Foods feeds l Other Foodstuffs feedstuffs Other....... : Aug Oct Dec 1984: Jan Feb... Mar Apr r... May June July Aufir 170 181.7 195.9 217.7 247.0 269.8 280.7 285 286 286 287.1 286.9 287 289.1 290 291 291 291 291 29 291.9 180 189.9 207 226 239 253 259 261.8 260 262.1 264.8 263.9 265.8 272.8 274 276 274 271.9 270 274.1 27 166.1 177.7 190.7 21 247.8 27 285.8 290.8 292.8 292 292 292 292 292 293.1 294.0 294.8 29 296 295.9 29 162 174 186.7 211 250.8 276 287.8 291 293 293 292.8 292.9 292 292.0 292.7 293 294.0 295 295.8 295 294 144 152.8 166.9 183 206 218 226.7 233.1 234.7 234 233.0 233.8 234.0 234.0 235 237 237 236.8 237 237 238.1 174.8 189.0 231 283.9 319 333 335 337.9 337.9 338.1 337 336 33 336.1 336.0 336.7 339 339.9 338.8 336.9 173 184 19 216 239.8 264 279 287 288.8 288 288 289.0 289.8 290 291.7 292 294 294 294 295 296 169.7 180.7 194.9 217.9 248.9 271 281.0 284 285 286.1 286 286 286.7 288.7 289.8 291.0 290 290 290 291 290.7 189.1 201 215 24 280 306.0 310 312 313 315 316 316 317.1 317.0 317 319 319 320 321 321.0 320 185 190 203.1 226.1 252 250 239 247.9 249 261 258 258.9 257.8 261.1 256 259.8 260 259 257 253.0 250.1 189 202 216 244 282 310.1 31 317.1 318 319 320 321.0 321 321 32 323.8 323.9 324.8 326 326.1 32 202.7 20 234 274 304 329.0 319 323 32 328.8 32 330 333 336.0 330.9 337.1 336.9 334 331.1 331 327 190 192.1 216 247.9 25 257 247.8 25 251.9 256 258 259 263 269 261.1 271 268 261.7 25 256.8 252 228 24 272 330.0 401.0 482 473.9 477 482 485 482 483.1 484 479.9 481 479.0 48 490.8 49 491.8 488 1 Intermediate materials for food manufacturing feeds. Source: Department of Labor, Bureau of Labor Statistics. 22

CONSUMER PRICES In August, the consumer price index for all urban consumers rose 0 percent seasonally adjusted (0 percent not seasonally adjusted). The index was 4 percent above its level in August. INDEX, 1967= (RATIO SCALE) 320 300 INDEX, 1967^= (RATIO.SCALE) 320 300 280 280 260 260 240 220 ALL ITEMS 240 220 180 180 140 LLH 1984 140 SEE NOTE ON TABLE BELOW SOURCE: DEPARTMENT OF LABOR [1967 =, except as noted; monthly data seasonally adjusted, except as noted] All items l NSA Food l Renters' costs 2 Housing Shelter Homeowners' costs 2 NSA Maintenance repairs NSA Fuel other utilities l Transportation New cars Motor fuel 3 Medical care Apparupkeep Energy 4 All items less food energy, shelter Rel imp. 5 : Aug Get Dec 1984: Jan Feb Mar Apr May June July Aug 170 181 195 217 246.8 272 289.1 2984 300 301.8 302 303.1 303 305 306 307 308.8 309.7 310.7 311.7 313.0 18.7 180.8 19 211 2345 254 2746 28 291 7 291.7 292 293 294.1 295 300 30 301.8 301.7 300.9 301 30 304.1 37 1746 186 202 8 227 6 263 3 293 5 314.7 323 1 324.1 325 326.0 327 328.1 329 331.1 331 33 334.1 334.9 336.7 338.7 21 1790 191.1 2104 239 7 281 7 314 7 337 0 344 8 346 348.0 349 350.7 351.8 353.0 353.8 355 357 358.7 360.0 362 364 7.0 103 0 103 104 104 10 105 10 106.0 106 107 107.8 108 108.9 109 14.0 102 5 103.0 103 103.9 104 104 104.9 105.1 105 106 106 106.8 107 108.1 0 199 6 214 7 233 0 2564 285 7 314 4 334 1 346 3 347.9 346 351.1 353 354.7 356.7 353 355 356 357 358.9 360 360.1 8 182 7 202 2 216 0 239 3 278 6 319 2 350 8 370 3 371.9 372.9 37 374 373.8 378 384.8 380.9 383.9 384 385 388 391.7 5 147 6 154 2 159 6 166 6 1784 186 9 191 8 196 5 197.9 198 198 198 198 199.0 198 198 198 198 198.1 199.0.8 21.8 165 5 177 2 185 5 212 0 249 7 2800 291 5 298 4 300.8 302.8 304 305 306.1 306.7 306 309 311. 312.7 312.1 311.1 311 3 135 7 142 9 153 8 166 0 179 3 190 2 197 6 202 6 20 204.9 205 205 20 205 206 207 207 207 207 208 209 5.9 177 9 188 2 196 3 265 6 369 1 410 9 3894 376 4 38 38 383 381 379.8 375.9 370 374.0 375 376.1 370 364.0 361 6.1 184 7 202 4 2194 239 7 265 9 294 5 328 7 357 3 360 361.7 362.9 364.7 366.0 368 371 373 375 377 379.0 381.1 38 11.9 189 3 207 3 2204 275 9 361 1 410 0 416 1 419 3 424 425.1 424 424 42 421.7 422.7 421.8 424.7 425 422 421 421.8 47.9 159 9 1695 179 1 191 5 208 3 228 1 245 6 258 4 259.7 260.9 26 263 264 265.8 266.7 267.8 269.1 270.0 270.7 271 272.7 1 Includes items not shown separately. 2 December =. 3 Includes direct pricing of diesel gasohol beginning ember. 4 Fuel oil, coal, bottled gas; gas (piped) electricity; motor fuel. Motor oil, coolant, etc. also included through. 5 Relative importance, December. NOTE.NSA indicates data are not seasonally adjusted. Data beginning are for all urban consumers; earlier data are for urban wage earners clerical workers. Data beginning incorporate a rental equivalence measure for homeownership costs therefore are not strictly comparable with figures for earlier periods. Source: Department of Labor, Bureau of Labor Statistics. 23

CHANGES IN PRODUCER PRICES FOR FINISHED GOODS [Percent change from preceding period; monthly data seasonally adjusted, except as noted] finished Change from preceding period Consumer Foods Excluding foods Capital equipment Change from 3 months earlier, annual rate finished Consumer Foods Excluding foods Capital equipment Change from 6 months earlier, annual rate finished Consumer Foods Excluding foods Capital equipment Change from year earlier, total finished NSA Change, Dec. to Dec., NSA.... 6 6.9 12.8 11.8 7,1 5-2 6.9 11.7 7 7 1 2.1 2 6.7 6.0 6.7 8 17 14 8 4 -.8 8 6 7 7.9 8.8 11 3.9 1.9 10.8 4 6 7.8 11.1 13 4.0 1 Change, month to month : Aug Oct Dec 0.1.1 0.7 1.0 3.7 0 0 -'.0-0 I.0.1 3.1 2.0 2.7.8 1.1 2 7 2 8.8 5.8 5.8 5 1.8 -.8 1 3 2.1 1 1.8 1.8 2 2.7 2.0 1-0.7.8 1 1 4.1 2 3.1 3 2 2.7 1.9 1.9 1.8 2.0 1 1 1.7 1984: Jan... Feb Mar Apr r May r T J June July r k J AufiT - 0.0 ^.0 -.1 2.7 7 -.9 6 1.1 -.1.1-2.0.0 2.8 4.7 3 1.8 0 1.1 12 17.1 16.9 2 3 7-8 2.7 1.1 o 1.1 2.8 3 3.0 1 -.9 2.7 3.8 3.8 5 3.8 2.8 1 2 2.8 2.7 3 3.0 3 2.8. 1 10.7 11 11 7 6 3 1.0 - -.1.8 1 2 1 2.1 2.0 2.8 4.0 3.8 3.1 2.0 2 2.8 2.9 2 2 2.0 NOTE.NSA indicates data are not seasonally adjusted. Source: Department of Labor, Bureau of Labor Statistics. CHANGES IN CONSUMER PRICES [Percent change from preceding period; monthly data seasonally adjusted, except as noted] All items 1 Food 1 1 Housing Shelter Renters' costs Homeowners' costs NSA 1 Transportation New cars Motor fuel 2 Fuel other utili- Apparel upkeep Medical care Energy 3 All items less food, energy, shelter Addendum: All items, percent change (annual rate) From previous quarter 4 From 3 months earlier From 6 months earlier From year earlier NSA Change, December to December, NSA 7.0 4.8 6.8 9.0 1 12 8.9 3.9 3.8 6 8.0 11.8 10 10 4 3.1 2 7 5 7 9.9 15 1 10 3 3 7 4 8.7 11 17 15.1 9.9 2 4.7 5.1 4 11 9.0 8.1 5.9 16.0 13 14 9.7 1.8 2 4 4 3 5 6.8 3 1 2.9 9.8 8.8 4 7.7 18 14.7 11.0 1.7 3.9 7 4.8 7 6 7 7 6.8 1 3 11.0 2 4.9 8 5 18.9 9 65-1.7 9.9 10.1 8.8 8.8 10.1 10.0 12 11.0 6 11 6.9 7 8.0 37 18.1 11.9 1 6 7.0 5 6 7 9.9 9 6.1 9.1 5.8 6 7.7 11 13 10 6.1 3 Change, month to month : Aug Oct Dec 0 0 0 0 0 0 0 - - 0 0 0 0.7.7 0.8.8 1 0 0 -.1 4-0 0.1 2.1 g 0 4.1 4 3.8 4 4 4 4.0 4 4 4 4 2 2.9 2.9 3 3.8 1984: Jan Feb Mar Apr May June July Aug 1.7 -.1 -.0 -.1.0.7.8.7 1 L7-1.0.8.8.8 -.1 -.1.1 -.9 -.0.9 2 3 lo -.0.1 2.0-1.0-1.9-1 -1.7 8.7.8. -.7 -.7 -.1 4 3 2 4.8 4.8 4 4 4 4.1 3 3 4.1 4 4.7 4 4 4 4.1 4 1 Includes items not shown separately. Data beginning January are for all urban consumers; earlier data are for urban wage earn- 2 Includes direct pricing of diesel gasohol beginning ember. ers clerical workers. 3 Fuel oil, coal, bottled gas; gas (piped) electricity; motor fuel. Motor oil, coolant, Data beginning January incorporate a rental equivalence measure for homeownership costs etc., also included through. therefore are not strictly comparable with data for earlier periods. 4 Quarterly changes are shown in the last month of the quarter. _, _ T,, T,.. isniirr'fr Dflnnrtnnfint. nf Labor Knrft»n nf li»hnr htetistins NOTE.NSA indicates data are not seasonally adjusted. 24

PRICES RECEIVED AND PAID BY FARMERS Prices received by farmers fell 2.8 percent in ember prices paid by farmers were unchanged. INDEX, = (RATIO SCALE) 180 INDEX, = (RATIO SCALE) 180 140 PRICES PAID 140 120 PRICES RECEIVED 120 80 80 60 RATIO^ 140 1 Hi1 60 RATIO^ 140 120 RATIO 120 80 80 60 UIJJJIXUIJIU UUJLLLUUJJJ11UL HliilUHL iluujlllllllilljilli 1984 60 *J RATIO OF INDEX OF PRICES RECEIVED TO INDEX OF PRICES PAID. SOURCE: DEPARTMENT OF AGRICULTURE [ = ] Prices received by farmers Prices paid by farmers All farm products Crops Livestock products All commodities, services, interest, taxes, wage rates 1 Production items, interest, taxes, wage rates Production items Ratio 2 102 115 132 134 139 133 134 102 105 116 125 134 121 127 101 124 147 144 143 145 141 95 108 123 138 150 157 161 95 109 125 139 151 155 159 97 108 125 138 148 150 153 107 106 107 97 93 85 84 - Oct Dec 136 134 135 140 135 133 134 136 137 135 136 143 162 161 162 163 159 161 154 153 154 155 84 83 83 86 1984: Jan Feb Mar Apr May June July r Aue 144 144 145 146 144 144 144 143 139 138 137 139 140 144 145 142 144 138 150 151 151 151 145 143 145 143 140 164 165 165 166 166 166 165 165 165 162 163 164 164 164 163 162 162 161 156 156 157 158 157 157 156 155 155 88 87 88 88 87 87 87 87 84 1 Includes items not shown separately. 2 Percentage ratio of index of prices received by farmers to index of prices paid, interest, taxes, wage rates. NOTE.The official indexes are published on a 1910-14 base as required by law. The indexes have been converted to a = base to facilitate comparison with other indexes. Source: Department of Agriculture. 25

MONEY, CREDIT, AND SECURITY MARKETS MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Ml rose slightly in August, following a small decline in July. Growth in M2 was little changed in August while growth in M3 slowed a little. BILLIONS OF DOLLARS*(RATIO SCALE) 3, 2,800 2,400 2,000 BILLIONS OF DOLLARS*(RATIO SCALE) 3, 2,800 2,400 2,000 1,600 1,600 M2 1, 1, 1,000 600 Z 1,000 7 600 500 500 Ml 400 400 300 1984 300 * AVERAGES OF DAHY FIGURES; SEASONALLY ADJUSTED SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM [Averages of daily figures, except as noted; billions of dollars, seasonally adjusted] Ml M2 M3 L Debt Percent change from year or 6 months earlier 2 Sum of currency, dem deposits, travelers' checks, other checkable deposits (OCDs) Ml plus overnight KPs Eurodollars, MMMF balances (general purpose broker/dealer), MMDAs, savings small time deposits M2 plus large time deposits, term KPs, term Eurodollars, institution-only MMMF balances M3 plus other liquid assets Debt of domestic nonfinancial sectors (monthly average) J Ml M2 M3 Debt - Dec : Dec - Dec : Dec : Dec - Dec : Dec - Dec r : Aug... Oct r Dec r 1984: Jan r. Feb r Mar r. Apr r. May r. T J r June July r Aug p., 310 335 363.1 389.1 414.9 441,9 480 525 517 518.9 521 523.0 525 530.0 532.9 535.1 535 541.0 546 545 546 1,163 1,286.7 1,389.1 1,498 1,632 1,796 1,965 2,196 2,135 2,147.9 2,167 2,182.1 2,196 2,206.7 2,222 2,229.9 2,242.7 2,258 2,272.0 2,281.1 2,289 1,311.9 1,472.9 1,647.1 1,804.8 1,989.8 2,236.7 2,460 2,707.9 2,617 2,636.7 2,656 2,686.8 2,707.9 2,721 2,744 2,765 2,789.7 2,81 2,836.9 2,856.8 2,867.8 1,516 1,704.7 1,910 2,117.1 2,326.0 2,598 2,868.7 3,178.0 3,075.1 3,097.9 3,114.0 3,144.8 3,178.0 3,197.0 3,227.1 3,268.7 3,295.1 3,326.9 3,367 r 2,513 r 2,829.1 r 3,.0 r 3,583 r 3,926 r 4,311.9 r 4,710.1 5,225 r 5,036.8 r 5,080.0 r 5,124.9 5,171 5,225 5,282 5,340 5,394 5,452 5,514.0 5,566 5,626.0 6 8.1 8 7 6 6 8.7 9 11.0 9 9.7 6 6.0 6.1 6 5 7.0 8.1 6.0 5.1 1 10 8.0 7.9 8.9 10.0 9 11.7 8.1 7.9 8 7.7 7 7.7 8 7.8 7.1 7.1 7.0 6.9 6.1 11.9 12 11.8 9 10 12 10.0 10.1 8.1 8 8 9.1 10.0 10.0 10 9.8 9.8 10 10.7 12 13.1 12.0 9 r 9.8 r 10.9 r!1 r!1 11 11.7 11.7 11.9 12 12.8 13 1 13 13 1 Consists of outsting credit market debt of the U.S. Government, State local governments, private nonfinancial sectors; data from flow of funds accounts. 2 Annual changes are from December to December monthly changes are from 6 months earlier at a seasonally adjusted annual rate. NOTE.-The nontransactions portion of M2 is now being seasonally adjusted as a whole to reduce 26 distortions caused by substantial portfolio shifts arising from regulatory financial changes in recent years, especially shifts to MMDAs in. A similar procedure is being used to seasonally adjust the remaining nontransactions balances in M3. See p. 27 for components. Source: Board of Governors of the Federal Reserve System.

COMPONENTS OF MONEY STOCK AND LIQUID ASSETS [Averages of daily figures; billions of dollars, seasonally adjusted, except as noted] Currency Dem deposits Other checkable deposits (OODs) Money market mutuaifund balaiices Overnight repurchase agreements (EPs), net, plus overnight Eurodollars General purpose broker/ dealer Institution only Money market deposit accounts (MMDAs) Savings deposits Small denomination time deposits l Large denomination time deposits * Term repurchase agreements (KPs) Term Eurodollars (net) Savings bonds Shortterm Treasury securities Bankers' acceptances Commercial paper NSA NSA NSA NSA NSA NSA : Dec... : Dec... : Dec... : Dec... : Dec... : Dec : Dec... : Dec... : Aug Oct. Dec 1984: Jan..... Feb Mar Apr r. Mav r June r July r.. Auff p. 80 88 97 1063 116.7 1240 134.1 148.0 143 1448 146.0 147 2 148.0 1499 150 1509 151.8 152 9 154 1550 156.0 224 239 253.8 261 9 266 2362 239.7 24 24 2430 243 242 8 24 244 5 243.8 2440 245 245 2 248 247 1 245 2.7 4 8 17.1 27 774 102 128.8 125 1264 127 128 2 128.8 1307 133.8 1352 133 137 8 138 138 3 139.7 10 147 20 21 2 28 359 44.1 56 52 535 57.0 552 56 586 59 583 57 59 1 56 56 3 579 2 24 6 334 61 1506 185 138 139.1 137 9 137 138 8 138 r!37 8 142.1 144 8 145.9 1465 148.9 1505 150 6 0 9 3.1 95 1 36 2 48 40 38 388 39.8 406 40 406 41 41 8 41 8 42 0 42 42 6 42 7 43.0 376.0 368 369 5 3705 372 9 3760 380 3 3860 392 5 3964 394 6 392.9 388 9 383 1 452.8 491 3 480.8 423 1 401 345 7 362.1 312.9 319 317 9 317.1 3154 312.9 309 9 306 305 5 3055 305 5 305 303 3 3005 391.0 446.0 521.9 6358 731 827 3 856.9 793.1 749.0 7590 773.0 785 5 793.1 797 0 800.9 803 4 8083 816 7 829.1 845 0 861 5 118.1 145 1 195 222 1 258 301 6 327.9 325.9 308 313 2 315 320 8 3259 333 4 3403 348 3 3559 367 6 379.1 389 1 391 9 14.1 194 27.0 30 1 34.7 37 0 40 56.0 46.9 48 0 47 53 4 56.0 53 3 54 55 9 59 8 61 6 59.8 59 7 63 4 14.8 202 31.8 44 7 50 67 5 81.7 93 91.9 90 7 868 91 7 934 r 90 7 r 909 r 94 1 93 6 93 8 88 87 1 85 1 71.8 76 80 79 72 67 7 67.9 71.0 70 705 70.7 708 71.0 71 2 71.7 72 2 72 72 8 73.0 70 78 82.0 108 133.8 149.9 187.8 22 222.9 221 218 217 2 22 226 6 231.8 245 8 241.8 2400 252.1 10.8 14.1 22.0 27.1 32.0 39.8 43.9 43 43 43.8 42.8 " 430 43 42 8 41.7 42 6 4 454 47.1 51.7 62.9 7 97.0 98.1 104 108.8 132 121.0 125 12 126.9 132 13 137 1430 147.7 152 9 158 1 Small denomination large denomination deposits are those issued in amounts of less than $,000 more than $,000, respectively. NOTE.See note p. 26. Travelers checks are a component of money stock but are not shown here. NSA indicates data are not seasonally adjusted. Source: Board of Governors of the Federal Reserve System. CONSUMER INSTALLMENT CREDIT [Millions of dollars; seasonally adjusted] Installment credit outsting (end of period) Automobile Kevolving Mobile home Other Net change in installment credit outsting * Automobile Revolving Mobile home Other : Dec : Dec : Dec : Dec : Dec : Dec : Dec.. - Dec 190,725 226,646 269,392 307,115 309,694 330,218 348,944 388,718 67,798 82,890 101,863 116,523 116,808 125,323 129,799 141,876 16,505 36,427 45,004 53,174 54,900 60,309 65,453 75,564 14,530 14,897 15,199 16,843 17,302 17,879 22,119 23,460 91,892 92,432 107,326 120,575 120,684 126,707 131,573 147,818 21,338 35,921 42,746 37,723 2,579 20,524 18,726 39,774 10,519 15,092 18,973 14,660 285 8,515 4,476 12,077 2,038 19,922 8,577 8,170 1,726 5,409 5,144 10,111 148 367 302 1,644 459 577 4,240 1,341 8,633 540 14,894 13,249 109 6,023 4,866 16,245 - July Aufif Oct Dec 366,378 370,471 373,024 378,117 382,936 388,718 134,764 137,136 137,431 139,140 140,408 141,876 70,089 70,630 71,209 72,447 73,874 75,564 23,076 23,298 23,553 23,523 23,459 23,460 138,449 139,407 140,831 143,007 145,195 147,818 3,706 4,093 2,553 5,093 4,819 5,782 1,849 2,372 295 1,709 1,268 1,468 616 541 579 1,238 1,427 1,690 237 222 255-30 -64 1 1,004 958 1,424 2,176 2,188 2,623 1984: Jan Peb Mar Apr May June.. July. 393,187 399,795 405,665 412,073 422,306 430,131 437,237 143,982 146,781 147,107 149,265 152,954 155,851 159,273 76,069 77,342 80,304 82,172 84,989 86,558 87,198 23,368 23,241 23,526 23,811 24,113 24,567 25,029 149,768 152,430 154,728 156,825,250 163,155 165,737 4,469 6,608 5,870 6,408 10,233 7,825 7,106 2,106 2,799 326 2,158 3,689 2,897 3,422 505 1,273 2,962 1,868 2,817 1,569 640-92 127 285 285 302 454 462 1,950 2,662 2,298 2,097 3,425 2,905 2,582 1 For year-end data, change from preceding year-end; for monthly data, change from preceding month. Source: Board of Governors of the Federal Reserve System. 27

BANK LOANS AND INVESTMENTS, AND RESERVES Growth in commercial industrial loans was little changed in August. BILLIONS OF DOLLARS* (RATIO SCALE) 1,800 1,600 -ALL COMMERCIAL BANKS 1,400 1, 1,000 800 600 LOANS AND LEASES BILLIONS OF DOLLARS* (RATIO SCALE) 1,800 1,600 1,400 1, 1,000 800 600 400 400 120 INVESTMENT IN OTHER SECURITIES 120 80 \ INVESTMENT IN U.S. TREASURY SECURITIES 80 40 1i11ll11 H 1 MM ililili inn HI ill I Mil iliil nil ill i 1984 40 *SEASONALLY ADJUSTED, AVERAGES OF WEDNESDAY FIGURES SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM [Billions of dollars, seasonally adjusted, except as noted] All commercial banks * Depository institutions 3 loans investments Loans leases 2 Commercial industrial loans U.S. Treasury securities Investments Other securities Reserves adjusted for changes in reserve requirements Nonborrowed Required Borrowings (millions of dollars, unadjusted) Seasonal : Dec : Dec. : Dec : Dec.. : Dec : Dec : Dec : Dec r 804 891 1,013 1,135.9 1,239 1,316 1,412.0 1,568.1 55 632 747.0 849.9 915.1 973.9 1,042.0 1,132 190.9 210.9 245.9 291 326.8 358.0 392 41.8 99.8 93.8 94 110.0 111.0 130.9 188.0 148.8 159 172.8 191 214 231 23 247 258 269 275 28.72 304 311 333 362 252 22 268 275 28.95 30.88 32.99 354 20 26.10 272 289 30.13 310 33.13 355 53 569 868 1,473 1,690 636 634 774 13 55 135 81 116 54 33 96 : Aug r r. Oct r r Dec r. 1,513 1,520 1,532.9 1,548.9 1,568.1 1,091.0 1,096 1,104.1 1,11 1,132 402 402 404.7 407.8 41 174 176.9 182 186 188.0 247.8 247.1 246 247.1 247 36.12 361 363 36.18 362 347 34.77 359 357 354 357 32 33 355 355 1,546 1,441 844 906 774 198 190 142 121 96 1984: Jan r. Feb r Mar r Apr r May r June r July r Aug p 1,585 1,604 1,621 1,630.0 1,649 1,652 1,664 1,675 1,144.7 1,164.1 1,181.0 1,193 1,21 1,222 1,233.9 1,241.1 418 423.9 434.1 437 447 453 456 459.7 188.7 188 186.9 185 186.1 181.7 182.8 184.8 252.0 25 253 250.8 250.0 248 247.7 249 363 37.09 37.16 37.18 372 385 380 385 32 362 361 35.94 343 35 328 304 35.82 36.15 366 369 36.94 379 37.70 37.77 715 567 952 1,234 2,988 3,300 5,924 8,017 86 103 133 139 196 264 308 346 1 Data are averages of Wednesday Figures. 2 Excludes 10a«s to commercial banks in the United States. 3 Data are averages of daily figures. NOTE.Bata os loans investments revised beginning December. Reserves data revised beginning August ; revised data for earlier periods are not yet available. Beginning Dec., bank loans investments reserves aggregates have been reduced because of shifts from U.S. banking offices to International Banking Facilities (IBFs). Source: Board of Governors of the Federal Reserve System. 28

SOURCES AND USES OF FUNDS, NONFARM NONFINANCIAL CORPORATE BUSINESS [Billions of dollars; quarterly data at seasonally adjusted annual rates] Sources Uses Internal * External Credit market funds Securities mortgages Loans short-term paper Other 2 Capital expenditures 3 Increase in financial assets Discrepancy (sources less uses) 1974 r... r. r r r r r r r r - I r II r ffl r TV r : I r n r m r iv r 1984: I r ii" 190 157.0 211.0 254.1 317 345 335 364 309 436 309 324 328.8 274.8 333.9 44 443 519.1 516 482 85 119.7 134 157 17 188.8 189 230 234 280 229.9 234 238.8 234.0 250 269.7 292 309 319 331.8 104.7 37 76.8 96.7 141.8 156 14 133.8 7 155.9 79 89.8 90.0 40.8 83 179 150.7 209.8 197.0 150.8 70 30.8 54.7 72 80 88 90.9 91 81 87.8 98.0 94.0 89.1 44 68.7 86 66 129 92 5 26 38.7 38 35.8 32.8 20.9 52 21.8 43.9 56 24 38.0 38 74 67.0 85.9 37.0 35.8 23 7-76.8 43.9 7 9 16 36 47.7 67 38 69.7 37 31 7 56.0 50-30.1 1.7 29 93 116 132 34 6 22.1 24 61 68 54.8 42-6 68.1 18 5-4.1.9-3.8 14.8 93.1 84.1 80 104 95.1 190.1 150.9 201.8 237 293 34 317.7 334 258.0 384 249.9 281 274 226.8 282 390 395 468.9 496 474.1 137.9 109.7 148 175.1 201 219 221 271 229 256 252.1 238.0 229 199.1 206.9 255 270 291.9 354 363 5 41 53 62 92.0 124 96 62.9 28 128.1 2 2 43 44.9 27.7 75 135.1 124.8 177.0 142.1 110.7 0 6.0 16 23.8 1 17 30.0 51 52.1 59 4 54 48.0 51 58.7 47.8 50 20.0 8 1 Undistributed profits (after inventory valuation capital consumption adjustments), capital msumption allowances, foreign branch profits, dividends, subsidiaries' earnings retained»ad. Consists of tax liabilities, trade debt, direct foreign investment in the U.S. 3 Plant equipment, residential structures, inventory investment, mineral rights from U.S. Government. NOTE.Series revised beginning 1971. Source: Board of Governors of the Federal Reserve System. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS [Billions of dollars, except as noted] End of period Cash U.S. Government securities Current assets Notes accounts receivable Inventories Other current assets Current liabilities Notes accounts payable Other current liabilities Net working capital Current ratio * SEC series: 2 1970 1971.. 1972 1973... 1974 QFR-FRB series: 3 1974... r. r r. : I r II r III r IV r. 1984- P 492 529 599 697.8 790.7 735 759.0 827 912.7 1,04 1,214.8 1,327.0 1,418 1,432.7 1,557 1,444 1,468.0 1,522.8 1,557 1,604 50 5 59.0 66 71.1 73 82.1 88 97 105 118.0 126.9 135 147.0 165.8 143.1 147.9 150 165.8 158.8 7.7 11.0 10 12.8 12 11.1 19.0 23 18 17 16.7 18.7 17 22.8 30 26.0 28 27.0 30 36 206.1 221.1 248 288 322.1 265.8 272.1 292.9 330 388.0 459.0 506.8 532.0 51 577.8 525 53 56 577.8 597.7 19 22 263.9 313 319 315.9 342 376.9 431.8 505.1 542.8 58 578 599 577 576 597 599 622.8 3 43.8 55.8 66 71.7 65.9 69.9 80 90.1 101.1 116.0 131.8 149 165 18 172.1 176 183.0 18 188.8 304.9 326.0 375 450.9 530 453 451 495.1 557.1 669 807 889 970.0 976.8 1,043.0 983 990 1,026 1,043.0 1,077.7 211 220 282.9 340 402 269.8 264 282.1 317 383.0 460.8 513 546 543.0 577.9 530.9 536 559 577.9 581 93 105 92.7 110.7 128.1 183 187 213.0 239 286 346 37 42 433.8 465 452 453 467 465 496 187 203 22 246.9 260 282.0 307 332 355 374 407 437.8 448 455.9 514 460.8 477.8 496 514 526.7 115 125 195 148 191 122 181 171 138 159 105 192 162 167 193 169 183 183 193 189 1 current assets divided by total current liabilities. 2 Based on data from Statistics of Income, Department of the Treasury. 3 Based on data from Quarterly Financial Report for Manufacturing, Mining, Trade Corporations, Effective mid-, responsibility for the Quarterly Financial Report was transferred to the Department of Commerce, Bureau of the Census from the Federal Trade Commission. NOTE.QFE-FRB series revised beginning. SEC series not available after 1974. See Federal Reserve Bulletin, July, for details regarding the series. Sources: Board of Governors of the Federal Reserve System, Department of Commerce (Bureau of the Census), Federal Trade Commission, Securities " Exchange Commission.

INTEREST RATES AND BOND YIELDS Interest rates fell in ember. PERCENT PER ANNUM SOURCE: SEE TABLE BELOW 1984 [Percent per annum] U.S. Treasury security yields Constant maturities 2 3-month bills l 3-year 10-year High-grade municipal bonds (Stard & Poor's) 3 Corporate Aaa bonds (Moody 's) Prime commercial paper, 6 months 4 Discount rate (N.Y. P.E. Bank) 5 Prime rate charged by banks 5 New-home mortgage yields (FHLBB) 6 721 10.041 1106 14.029 1086 83 89 9.72 115 144 12.92 105 81 94 116 13.91 13.00 11.10 5.90 69 81 113 117 97 8.73 93 11.94 14.17 19 12.04 4 7.99 10.91 19 14.76 11.89 8.89 76 108 11.77 131 11.02 80 9.06 127 157 18.87 14.86 10.79 96 10.78 126 14.70 15.14 127 Open-close Open-close : Oct Dec 1984: Jan Feb Mar Apr May June July Aug 9.05 8.71 8.71 8.96 8.93 9.03 94 99 9.90 9.94 10.13 109 101 11.07 10.87 10.96 11.13 10.93 11.05 119 11.98 12.75 13.18 13.08 r 120 124 115 114 119 11.83 117 11.84 122 123 131 136 16 r 12.72 122 97 94 9.79 9.90 91 93 9.92 9.98 105 10.71 10.03 10.17 127 15 121 127 10 12.08 127 12.81 138 135 134 12.87 126 8 8.98 9.09 90 9.18 91 9.86 102 10.87 113 114 11.16 10.94 80-80 80-80 80-80 80-80 80-80 80-80 80-80 8 50 9 00 9.00-9.00 9 00 9 00 9.00-9.00 9.00-9.00 9.00-9.00 11 00 11 00 11.00-11.00 11 00 11 00 11.00-11.00 11.00-11.00 11.00-11.00 11.00-110 110-12.00 12.00-120 120-13.00 13.00-13.00 13.00-13.00 13.00-12.75 124 15 124 122 19 13 12.02 12.04 12.18 c 12.10 r 120 122 Week ended: 1984: Aug 25 1 8 15 22 29 100 100 103 109 103 107 126 120 123 124 12.19 17 126 12.82 12.83 121 125 126 10.05 10.19 102 10.12 10.00 104 12.84 12.88 12.87 12.72 122 126 11.16 11.17 114 11.05 10.84 10.70 9.00-9.00 9.00-9.00 9.00-9.00 9.00-9.00 9.00-9.00 9.00-9.00 13.00-13.00 13.00-13.00 13.00-13.00 13.00-13.00 13.00-13.00 13.00-12.75 1 Rate on new issues within period; bank-discount basis. 2 Yields on the more actively traded issues adjusted to constant maturities by the Treasury Department. 3 Weekly data are Wednesday figures. 4 Bank-discount basis. Prior to ember 1,, data are for 4-6 months paper. 5 Average effective rate for year; opening closing rate for month week. 6 Effective rate (in the primary market) on conventional mortgages, reflecting fees charges as well as contract rate assumed, on the average, repayment at end of 10 years. Rates beginning January 1973 not strictly comparable with prior rates. Sources: Department of the Treasury, Board of Governors of the Federal Reserve System, Federal Home Loan Bank Board, Moody's Investors Service, Stard & Poor's Corporation. 30

COMMON STOCK PRICES AND YIELDS (Stock prices rose in ember. INDEX, DEC 1, 1965 =50 ( INDEX, DEC 31,1965=50 1 90 80 COMPOSITE STOCK PRICE INDEX (NYSE) 90 70 70 60 60 50 50 40 40 1984 PERCENT 20 EARNINGS-PRICE RATIO ON COMMON STOCKS (S&P) PERCENT 20 1984 SOURCES: NEW YORK STOCK EXCHANGE AND STANDARD & POOR'S CORPORATION Composite Common stock prices * New York Stock Exchange indexes (I ec. 31, 1965 5O) 2 Industrial Transportation Utility Finance Dow-Jones industrial average 3 Stard & Poor's composite index (1941-43=10) 4 Common stock yields (percent) 5 Dividendprice ratio Earningsprice ratio : Oct Dec 1984: Jan Feb Mar... Apr May \ J June July Aug r Week ended: 1984: 1 8 15 22 29 50 582 68.10 74.02 68.93 923 96.70 96.78 956 94.92 96.16 900 906 907 90.07 888 87.08 949 958 95.91 94.89 954 961 93 583 64.76 78.70 854 78.18 1075 112.76 112.87 110.77 1105 112.16 1054 105.92 1066 105.94 104.04 109 1110 112.18 112.99 111.71 1120 112.85 111.75 430 474 601 721 601 896 946 951 978 98.79 97.98 863 86.10 831 812 79 76.72 86.86 86.88 872 85.99 86.86 87.76 86.73 32 380 375 38.91 39.75 47.00 48.16 48.73 480 47.00 473 457 44.83 43.86 442 435 44.17 469 477 46.91 466 46.86 47.89 481 565 612 645 732 71.99 954 97.00 94.79 948 945 99 89.95 890 882 86 80.75 79.03 87.92 919 898 888 90.94 935 92.77 8203 8440 8911 932.92 8846 1,1904 1,237.04 1,250 1,250.01 1,2574 1,258.89 1,1646 1,161.97 1,152.71 1,1432 1,121.14 1,1137 1,212.82 1,2131 1,226.92 1,211.91 1,212 1,218.93 1,2096 96.02 103.01 118.78 128.05 119.71 1 167.16 1675 1653 1646 1669 1575 1574 1570 1565 153.12 151.08 1642 166.11 166.84 164.80 166.02 1672 166.05 58 57 56 50 5.81 40 44 4,25 41 42 47 49 43 44 4.72 4.86 4.93 42 44 40 48 46 40 43 12.03 136 126 11.96 110 8.03 8.01 81 97 I Average of daily closing prices. 1 Includes all the stocks (more than 1,500) listed on the NYSE. 3 Includes 30 stocks. 4 Includes 500 stocks. 5 Stard & Poor's series. Dividend-price ratios based on Wednesday closing prices. Earningsprice ratios based on prices at end of quarter. NOTE.All data relate to stocks listed on the New York Stock Exchange (NYSE). Sources: New York Stock Exchange, Dow-Jones & Company, Inc., Stard & Poor's Corporation. 31

FEDERAL FINANCE FEDERAL RECEIPTS, OUTLAYS, AND DEBT In the first 11 months of fiscal year 1984, there was a budget deficit of $192.1 billion, compared to a budget deficit of $197 billion a year earlier. BILLIONS OF DOLLARS BILLIONS OF DOLLARS 900 _ BUDGET RECEIPTS AND OUTLAYS 900 800 800 700 600 500. BUDGET OUTLAYS \ BUDGET RECEIPTS 700 600 500 400 400 0 BUDGET SURPLUS OR DEFICIT (-) 0 - - - - SOURCES: DEPARTMENT OF THE TREASURY AND OFFICE OF MANAGEMENT AND BUDGET FISCAL YEARS 1984 1985 [Billions of dollars] Budget receipts Budget outlays Budget surplus or deficit ( ) Off-budget surplus or deficit ( ) surplus or deficit ( ) Federal debt (end of period) Gross Held by the public Fiscal year or period: 1972 1973 1974 Transition Quarter.. 1984 (estimates) 1 1985 (estimates) 1 207,3 230.8 263 279.1 298.1 81 355 399 46 517.1 599 617.8 600 670.7 763.8 230.7 245 267.9 324 364 94 400 448 491.0 576.7 657 728 796.0 84 930 234-14.8-4.7-45 664-13.0 44.9-48.8-27.7-59 -57.9 1106-195 1743-166.9-0.1 1 4-8.1 7-1.8-8.7-10 -12 142-21.0 17-12 13.0-1 23-14.9-6.1-53 -7 14.7-53 5-40 -73.8-78.9-127.9-207.8-187 1802 437 468 486 544.1 631.9 646 709.1 780 833.8 914 1,003.9 1,147.0 1,381.9 1,575 1,806.9 323.8 343.0 346.1 396.9 480 498 551.8 610.9 644 715.1 794 929 1,141.8 1,302.8 1,480.8 Cumulative total first 11 months: Fiscal year Fiscal year 1984 537.0 598 734 790-197 192 1-9.7-8.0-207.0 1,353.1 1,565.1 1,126 1,308 1 Estimates from Mid-Session Review of the 1985 Budget, Office of Management Budget, August 15, 1984. Sources: Department of the Treasury Office of Management Budget. 32

FEDERAL BUDGET RECEIPTS BY SOURCE AND OUTLAYS BY FUNCTION In the first 11 months of fiscal year 1984, budget receipts were $61 budget outlays were $56 billion higher. billion higher than a year earlier BILLIONS OF DOLLARS BILLIONS OF DOLLARS 300 _ BUDGET RECEIPTS 300 0 -'*** OTHER RECEIPTS. CORPORATION INCOME TAXES 0 700 BUDGET OUTLAYS 700 600 500 NONDEFENSE V.,. 600 500 400 400 300 300 FISCAL YEARS AND OFFICE OF MANAGEMENT AND BUDGET 1984 1985 [Billions of dollars] Budget receipts Budget outlays Individual income taxes Corporation income taxes Other National defense Department of Defense, military International affairs Social security medicare Health income security Net interest Other Fiscal year or period: 1984 (estimates) 1 1985 (estimates) 1.. 279.1 298.1 355 399 46 517.1 599 617.8 600 670.7 763.8 122 131 157 181.0 217.8 244.1 285.9 297.7 288.9 299 341.8 40 41 54.9 60.0 6 64 61.1 4 37.0 59.0 74 116.1 12 143.0 158 179.8 208 25 270.8 274 31 347.7 324 364 400 448 491.0 576.7 657 728 796.0 84 930 86 89 97 104 134.0 157 185 209.9 233 266 85.9 88.1 95 102 11 131.0 153.8 180.7 204 227.0 258 7.1 6.1 6 10.9 11 10.1 9.0 12 17 77 89.7 104 116 130 150 178.7 202 22 237.8 258.1 63.0 76 78 80.0 86.8 109 126.1 134 150.8 142 144.1 23 26.7 29.9 35 42 52 68.7 8 89.8 109 130 66.9 76 8 10 108 119.1 114.9 111.0 113 109 114.8 Cumulative total first 11 months: Fiscal year Fiscal year 1984 537.0 598 258.0 264 28.0 4 251.1 289.0 734 790 192 208 187 202 8 11 20 231.7 138 131 8 101 106 106.0 1 Estimates from Mid-Session Review of the 1985 Budget, Office of Management Biidget, August 15, 1984. Note,Starting in 1985 military retired pay will be financed from a trust fund in the income security function. The national defense function will include accrual charges to pay for retirement benefits earned by currently active duty personnel, these will be offset in the undistributed offsetting receipts (employer share, employee retirement). The Social Security Amendments of require that social security medicare be shown in the budget as a separate function. In previous budgets social security" was in the income security function medicare was in the health function. Data for all periods in this table are shown on as comparable a basis as is feasible. Data shown here exclude the transition quarter. Sources: Department of the Treasury Office of Management Budget. 33

FEDERAL SECTOR, NATIONAL INCOME ACCOUNTS BASIS In the second quarter of 1984, according to revised estimates, Federal receipts rose $17.9 billion (annual rate) expenditures rose $20 billion, yielding a deficit of $16 billion. BILLIONS OF DOLLARS BILLIONS OF DOLLARS 900 SEASONALLY ADJUSTED ANNUAL RATES 900 800 800 700 600 EXPENDITURES 700 600 500 400 RECEIPTS 500 400 -TOO SOURCE: DEPARTMENT OF COMMERCE CALENDAR YEARS 1984 - [Billions of dollars; quarterly data at seasonally adjusted annual rates] Federal Government receipts Personal tax nontax receipts Corporate profits tax accruals Indirect business tax nontax accruals Contributions for social insurance Purchases of services Federal Government expenditures Transfer Payments Grantsin-aid to State local governments Net interest paid Subsidies less current surplus of Government enterprises Less: Wage accruals less disbursements Surplus or deficit (-), national income product accounts Fiscal year: Calendar year: : I nm.. IV : I. n m IV 1984: I H r 480.8 525.9 60 626 627.1 493 540.9 624.8 616.7 641.1 622.9 625.9 609.9 608 619.8 649 640 65 686 704 222 250 289 311 294.1 230 257.7 298.7 306 295 310.1 315 298.8 300.9 298 304.7 284 29 301 310.7 76.1 69.9 69 50.9 53.8 74 70 6 46 59.8 48 48 47 42.0 46.9 5 66.7 66 73.0 75 29.1 35 53 50 51.0 29 39.0 56 48 52 50 47 47 48 47.1 53.8 54.0 54 54.1 55.9 153.1 170.0 197.0 213.9 228 159 173.9 204.1 215 23 21 214.9 216.1 217.1 227 231.7 234.9 240.7 257 262.0 495 576 668 740.0 816 509.7 602.1 689.1 764.9 819.7 729 737.9 773 818.9 805 816.7 821.1 835 847 868.0 164.1 189 218 250 273 168 197.0 228.9 258.9 269.7 249.8 24 261 279 273.0 270 26 266 267 296 201.8 239 279 310 344 20 251 286.8 321 345 303.0 311.8 327.0 344 340.9 348.1 343 350.1 347.7 350.1 79.1 86.7 90.1 83 8 80 88.7 87.9 83.9 86 82.7 85.1 83.0 84 85 86 86.7 86 90 93 40 50.7 67.7 82 90 42 53 7 84 94 80.1 83.0 87 87.0 87.7 90.0 97 102.0 107 110.9 9.9 10 12 13.0 2 11 12 16.1 23 13 12.9 14 23 18 20 24.1 30 34 17.7-0.0.0.1 -.0 ^ o.0.1 -.0 4.1.0.0.0.0-1 -.0-14.8-50.7 58 9-113 189 3 16 1-61 64 3-148 178 6-106 112 0-16 -210-18 -167 180 9-180 -161-16 Sources: Department of Commerce (Bureau of Economic Analysis), Department of the Treasury, Office of Management Budget. 34

INTERNATIONAL STATISTICS INDUSTRIAL PRODUCTION AND CONSUMER PRICESMAJOR INDUSTRIAL COUNTRIES [1967 = ] United States Industrial production (seasonally adjusted) Canada Japan Prance Germany Italy United Kingdom United States 1 Canada Consumer prices (unadjusted) Japan France Germany Italy United Kingdom.... p : Aug Oct Dec 1984- Jan Feb Mar Apr... May T J June.. July Aug p 138 146.1 152 147.0 151.0 138 147 151.8 153.8 15 155 156 158.0.8 162.1 r 162.8 r 164 r!65 8 166 2 152.7 157.8 167 165.1 165.9 149 157 16 164 165.9 169.0 170 16 r 167.1 r 167 r 168 168.8 189.7 201.1 215 225 227 228 236 241 244.8 241 246 248 250 257.0 254.1 255 261 261 152 155 163 161 158 159 157 155 161 161 162 157 162 152.0 154.1 161 162.0 159.1 154 155 155 157.1 157 161.0 161.0 164 158.9 157.8.1 144.8 145.1 147.9 157 166 162.7 159.1 150.7 134.9 151.1 148 152.8 146.0 124 127.8 132.9 124.1 119 121.7 125 126.1 127.0 127.7 128.0 129.0 r 128 128.0 126.7 r!24 r!23 123.9 181 195 217 246.8 272 289.1 298 300 301.8 302 303.1 303 305 306 307 308.8 309.7 310.7 311.7 3130 185.9 202 221.0 243 273.9 303 321.0 324 324 326 326 327 32 331.1 331.9 332.7 33 334.7 336 3366 243.0 252 261 282 296 304.1 309.7 307 311 314 31 311 312 314 315.1 315.9 318 315 316 214 233.9 259.1 294 332.7 373.1 407.9 412.8 416.0 41 420.9 422 425 428.0 431.0 433 436 438 156.0 166.9 175.8 186.9 196.8 20 204 204.9 204.9 205 20 206 207 1 207 207.7 207.8 208 208 255 286 328 398.0 472 549 631.8 641.1 649 660 667.0 670 678 685.8 690 695 699 703.8 705.9 708.0 292 316 359.0 423 473.9 514.7 538 543.0 545 547 54 550.7 550 552 554 561.8 563.9 565 564.7 570.0 1 Beginning January data relate to all urban consumers. Source: National sources as reported by Department of Commerce, International Trade Administration, Office of Trade Industry Information, Trade Statistics Division, in International Economic Indicators. U.S. MERCHANDISE EXPORTS AND IMPORTS [Millions of dollars; monthly data seasonally adjusted] Merchise exports 1 Merchise imports Merchise trade balance domestic foreign exports 2 Domestic exports Food, beverages, tobacco Crude materials fuels Manufactured 2 Food, beverages, tobacco General imports 3 Grade materials fuels Manufactured (c.lf. value) Exports (f.a.s.) less imports (customs value) Exports (f.a.s.) less imports (f.a.s.) Exports (f.a.s.) less imports (c.i.f.) F.a.s. value Monthly average: *... * *... * *... 8,971 9,602 10,103 11,973 15,155 18,386 8,847 9,462 9,919 11,762 14,886 18,043 1,399 1,436 1,330 1,717 2,049 2,534 1,266 1,341 1,548 1,746 2,352 2,810 5,913 6,437 6,679 7,873 9,716 11,991 8,209 10,290 12,533 14,563 17,455 20,406 827 991 1,186 1,312 1,478 1,546 2,716 3,457 4,463 4,325 5,949 7,831 4,257 5,398 6,379 8,360 9,352 10,427 8,823 11,042 13,368 15,504 18,519 21,415 762-688 -2,430-2,590-2,300-2,020 148 1,440-3,265-3,530-3,364-3,030 Customs value : Aug Oct Dec 1984: Jan Feb Mar Apr May June July Aug 19,473 17,683 16,707 16,582 17,257 17,033 17,063 17,298 18,327 17,212 17,727 17,522 17,950 17,633 19,442 18,036 19,075 17,256 16,326 16,195 16,892 16,580 16,664 16,895 17,848 16,786 17,212 17,072 17,464 17,178 18,963 17,578 2,767 2,248 2,248 2,046 2,314 2,452 2,605 2,449 2,402 2,103 2,457 2,184 2,162 1,847 2,195 2, 2,752 2,793 2,463 2,745 2,691 2,345 2,270 2,532 2,664 2,532 2,791 2,523 2,833 2,603 2,740 2,642 12,857 11,643 11,034 10,882 11,147 11,241 11,277 11,407 12,097 11,372 11,147 11,560 11,628 11,837 12,988 11,766 21,748 20,329 21,504 22,714 22,451 24,333 23,115 22,976 26,586 26,147 26,771 28,368 25,569 25,356 31,883 1,529 1,485 1,568 1,480 1,466 1,747 1,565 1,591 1,759 1,773 1,865 2,028 1,761 1,576 2,002 7,739 6, 5,670 6,581 6,465 6,855 5,891 5,360 6,063 6,039 6,308 6,636 5,618 6,071 6,494 11,873 12,002 13,621 13,912 13,754 15,107 15,124 15,478 17,948 17,652 17,827 18,766 17,402 16,889 22,376 22,779 21,240 22,490 23,746 23,477 25,465 24,185 24,033 27,794 27,305 27,992 29,711 26,789 26,543 33,503 27 895 2 275-2,647 4 797-6,132-5,195-7,300-6,052-5,678-8,260 8 935-9,044-10,847-7,619 7 723-12,440-3,306-3,558-5,783-7,164-6,221-8,432-7,122-6,735-9,468 93-10,264-12,190 8839-8,910-14,061-9,859 1 Department of Defense shipments of grant-aid military supplies equipment under the Mili- Data beginning include trade of the U.S. Virgin Isls, except that for Virgin Istary Assistance Program are excluded from totals for all periods from monthly detail beginning ls exports are reflected in the figures for domestic foreign exports combined trade bal- January. ance. includes commodities transactions not classified according to kind. *Data for -79 for domestic foreign exports combined, total general imports, trade arrivals of imported other than intransit shipments. balance include trade of the Virgin Isls. NOTE. Imports on c.i.f. basis beginning not strictly comparable with earlier periods. Source: Department of Commerce, Bureau of the Census. 35

U.S. INTERNATIONAL TRANSACTIONS In the second quarter the current account deficit rose to $24 billion from $19.7 billion in the first quarter. The merchise trade deficit fell slightly, to $2 billion from $25.9 billion in the first quarter. BILLIONS OF DOLLARS* 10 BILLIONS OF DOLLARS* 10 BALANCE ON GOODS AND SERVICES -5-5 -10-10 -15 -MERCHANDISE TRADE \ ^- BALANCE -15-20 -20-25 -25-30 I 1 1 I I I 1 1 1 1 1 1 1984-30 * SEASONALLY ADJUSTED SOURCE: DEPARTMENT OF COMMERCE [Millions of dollars; quarterly data seasonally adjusted. Credits (+), debits ()] Exports Merchise 1 2 Imports Net balance Investment income 3 Receipts Payments Net Net military transactions Net travel transportation receipts Other services, net 3 Balance on services * Remittances, pensions, other unilateral transfers * Balance on current account 107,088 114,745 120,816 142,054 184,473 224,269 237,085 211,198,257-98,185-124,228-151,907 176 020-212,028-249,781-265,086-247,667-261,312 8,903-9,483 31 091-33,966-27,555-25,512-28,001-36,469-61,055 25,351 29,286 32,179 42,245 64,132 72,506 86,411 83,862 77,003-12,564-13,311-14,217-21,680 32 914-42,063 52 359-56,059 53 495 12,787 15,975 17,962 20,565 31,218 30,443 34,052 27,803 23,508-746 559 1,528 621 1 778-2,237 1 115 195 515 2 792-2,558 3 565-3,573-2,935-997 144-1,008-4,584 4,598 4,711 5,272 6,013 5,735 7,277 8,048 8,339 8,704 22,749 9,205-9,894-10,340 4,686 8,975 13,128-1,141-32,912-4,613 4998-4,617 5 106-5,649 7 077-6,833 8058-8^651 18,136 4,207-14,511-15,446-964 1,898 6,294-9,199-41,563 : I nttt IV 55,482 55,118 52,079 48,519-62,546-60,921-64,442-59,758-7,064 5 803-12,363 11 239 20,889 22,307 21,505 19,162-13,653-14,772-14,390 13 243 7,236 7,535 7,115 5,919 52 239-2 -94-114 -247-99 548 2, 2,005 2,118 2,054 2,270 3,729-3,231 3 908-2,105-1,802-1,745-2,406 165 1,927 4 976-6,314 - I nitt IV 49,246 48,745 50,437 51,829-58,523-63,615-67,938-71,236 9 277-14,870-17,501-19,407 17,618 18,973 20,802 19,609 12 380-12,995 13 630-14,490 5,238 5,978 7,172 5,119 790 53 55-273 263-1,131-1,426-1,764 2,142 2,258 2,107 2,198-1,370-7,712-9,703-14,127-1,573-1,848-2,143 3086-2,943-9,560-11,846-17,213 1984- I r n *... 53,935 r 54,597-79,790 r - 80,333 25 855 r - 25,736 23,330 20,618 15 552-16,956 7,748 3,662 370-282 1 400-2,238 2,351 2,293 17 526-22,301 2 147-2,101 19 673-24,402 1 Excludes military grants. 2 Adjusted from Census data for differences in timing coverage. 3 Fees royalties from U.S. direct investments abroad or from foreign direct investments in the United States are excluded from investment income included in other services, net. Source: Department of Commerce, Bureau of Economic Analysis. 36

U.S. INTERNATIONAL TRANSACTIONSContinued iln the capital accounts, U.S. claims on foreigners reported by U.S. banks increased $24 billion in the second quarter compared with a $2.0 billion decrease in the first quarter. Liabilities to foreigners international financial institutions reported by U.S. banks (including U.S. Treasury securities) increased $28 billion in the second quarter compared with a $10.1 billion increase in the first quarter. BILLIONS OF DOLLARS 60 BILLIONS OF DOLLARS* 60 CHANGE IN FOREIGN ASSETS IN THE U.S.,NET -20-40 CHANGE IN U.S. ASSETS A BROAD, NET -40-60 1984-60 *SEASONALLY ADJUSTED SOURCE; DEPARTMENT OF COMMERCE [Millions of dollars; quarterly data seasonally adjusted, except as noted] U.S. assets abroad, net [increase /capital outflow ( )] U.S. official reserve assets l 2 Other U.S. Government assets U.S. private assets Foreign assets in the U.S., net [increase /capital inflow (+)] 2 Foreign official assets Other foreign assets Allocations of special drawing rights (SDKs) Statistical discrepancy (sum of the items with sign reversed) Of which: Seasonal adjustment discrepancy U.S. official reserve assets, net 1 (unadjusted, end of period) -39,703-51,269-34,785-61,130-64,331-86,118-110,976-118,898-49,490-849 2 558-375 732-1,133 8 155-5,175 4 965-1,196 3 474-4,214 3 693-4,660 3 746-5,162 5 107-6,143 5013-35,380-44,498-30,717-57,202-59,453-72,802 694-107,790 43 281 15,670 36,518 51,319 64,036 38,752 58,086 81,313 95,181 81,722 7,027 17,693 36,816 33,678-13,665 15,497 5,003 3,318 5,339 8,643 18,826 14,503 30,358 52,416 42,589 76,310 91,863 76,383 1,139 1,152 1,093 5,897 10,544 2 023 12,540 25,404 24,982 22,275 32,916 9,331 16,226 18,747 19,312 18,650 18,956 26,756 30,074 33,958 33,747 : I n Ill IV -31,960-41,409-26,216-19,314-1,089-1,132-794 -1,950 803-1,700-2,555-1,086 30068-38^577-22,867-16,279 28,344 33,772 18,384 14,680-3,221 1,399 2,477 2,664 31,565 32,373 15,907 12,017 3,450 5,710 12,808 10,947-964 487-2,276 2,752 29,944 30,671 30,993 33,958 : I nmiv -24,364-1,060-9,223-14,843 787 16 529-953 1 130-1,251 1 204-1,429-22,447 175-8,548-12,461 15,888 12,452 19,578 33,804-252 1,739-2,703. 6,555 16,139 10,714 22,281 27,249 11,420-1,833 1,491-1,748 579 439 2 518 2,657 34,261 33,876 33,066 33,747 1984: I r -1,989-24,860 657-566 -2,037-1,222 705-23,073 15,660 35,934-2,784-571 18,444 36,505 6,002 13,328 154-91 34,975 34,547 1 Consists of gold, special drawing rights (SDRs), convertible currencies, the U.S. reserve position in the IMF. 2 Quarterly data are not seasonally adjusted. Sources: Department of Commerce (Bureau of Economic Analysis) Department of the Treasury. 37

Contents TOTAL OUTPUT, INCOME, AND SPENDING Page Gross National Product 1 Gross National Product in 1972 Dollars 2 Implicit Price Deflators for Gross National Product. 2 Changes in GNP, Personal Consumption Expenditures, Related Price Measures 3 Nonfinancial Corporate BusinessOutput, Costs, Profits 3 National Income. 4 Personal Consumption Expenditures 4 Sources of Personal Income 5 Disposition of Personal Income 6 Farm Income 7 Corporate Profits 8 Gross Private Domestic Investment.. 9 Expenditures for New Plant Equipment 10 EMPLOYMENT, UNEMPLOYMENT, AND WAGES Status of the Labor Force 11 Selected Unemployment Rates... 12 Selected Measures of Unemployment Unemployment Insurance Programs 13 Nonagricultural Employment.. 14 Average Weekly Hours Hourly EarningsPrivate Nonagricultural Industries 15 Average Weekly EarningsPrivate Nonagricultural Industries 15 Productivity Related Data, Business Sector '. 16 PRODUCTION AND BUSINESS ACTIVITY Industrial Production Capacity Utili2ation 17 Industrial ProductionMajor Market Groups Selected Manufactures 18 New Construction 19 New Private Housing Vacancy Rates 19 Business Sales InventoriesManufacturing Trade 20 Manufacturers' Shipments, Inventories, Orders 21 PRICES Producer Prices, 22 Consumer Prices.. 23 Changes in Producer Prices for Finished Goods..' 24 Changes in Consumer Prices... 24 Prices Received Paid by Farmers... 25 MONEY, CREDIT, AND SECURITY MARKETS Money Stock, Liquid Assets, Debt Measures. 26 Components of Money Stock Liquid Assets 27 Consumer Installment Credit 27 Bank Loans Investments, Reserves. 28 Sources Uses of Funds, Nonfarm Nonfinancial Corporate Business 29 Current Assets Liabilities of Nonfinancial Corporations 29 Interest Rates Bond Yields 30 Common Stock Prices Yields 31 FEDERAL FINANCE Federal Receipts, Outlays, Debt.. 32 Federal Budget Receipts by Source Outlays by Function 33 Federal Sector, National Income Accounts Basis 34 INTERNATIONAL STATISTICS Industrial Production Consumer PricesMajor Industrial Countries 35 U.S. Merchise Exports Imports 35 U.S. International Transactions 36 General Notes Detail in these tables may not add to totals because of rounding. Unless otherwise noted, all dollar figures are in current dollars. Symbols used: p Preliminary. r Revised. c Corrected.... Not available (also, not applicable). For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C, 20402. Price $20 (single copy) ($3.13 foreign). Subscription price: $27.00 per year; $35 for foreign mailing. 38 U.S. GOVERNMENT PRINTING OFFICE : 1984 038-876