Greenbook/Tealbook

Prefatory Note The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System. This electronic document was created through a comprehensive digitization process which included identifying the bestpreserved paper copies, scanning those copies, 1 and then making the scanned versions text-searchable. 2 Though a stringent quality assurance process was employed, some imperfections may remain. Please note that some material may have been redacted from this document if that material was received on a confidential basis. Redacted material is indicated by occasional gaps in the text or by gray boxes around non-text content. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act. 1 In some cases, original copies needed to be photocopied before being scanned into electronic format. All scanned images were deskewed (to remove the effects of printer- and scanner-introduced tilting) and lightly cleaned (to remove dark spots caused by staple holes, hole punches, and other blemishes caused after initial printing). 2 A two-step process was used. An advanced optical character recognition computer program (OCR) first created electronic text from the document image. Where the OCR results were inconclusive, staff checked and corrected the text as necessary. Please note that the numbers and text in charts and tables were not reliably recognized by the OCR process and were not checked or corrected by staff. Content last modified 6/05/2009. CONFIDENTIAL (FR) SUPPLEMENT CURRENT ECONOMIC AND FINANCIAL CONDITIONS Prepared for the Federal Open Market Committee By the Staff Board of Governors of the Federal Reserve System March 19, 1965 SUPPLEMENTAL NOTES The Domestic Economy New orders for durable goods (advance figures) showed little change in February after rising considerably in the two preceding months. The January-February level about equaled the peak reached last July, when defense orders were exceptionally large, and was 6 per cent above the 1964 monthly average. In February, defense orders rose somewhat further and new orders for metals and motor vehicles remained at advanced levels. On the other hand, new orders for machinery and equip- ment declined to the lower end of the range within which they have fluctuated since last May. Unfilled orders for durable goods rose further in February, with the rise for the month concentrated in metals and defense products. At the end of the month the total order backlog was up 15 per cent from a year earlier; increases over the year were widespread among industries but metals and machinery and equipment accounted for four-fifths of the over-all gain. Personal income rose $500 million in February to a seasonally adjusted annual rate of $511 billion. The February rise was equal to the average monthly increase of the last twelve months, if the $2 billion (annual rate) special nonrecurring dividend on veterans' life insurance is excluded from the January total. Personal income in February was 6.3 per cent higher than a year earlier. Seasonally adjusted housing starts, which had dropped sharply in January from an advanced December rate, dipped further in February to about the recent low reached, last August. On a three-month moving average, however, the rate in the most recent period continued above 1.5 million, little changed from the November-January average and moderately above the reduced rate in the third quarter of last year. Seasonally adjusted residential building permits also declined in February, but--unlike starts--this followed a sharp recovery in January, While all types of structures shared in the February decline, the reduction for 5-or-more family structures was very slight. PRIVATE HOUSING STARTS AND PERMITS February (thousands 1/ of units) Starts (total) Permits (total) 1 - family 2-4 - family 5-or-more-family Per cent change from: Month ago Year ago 1,422 - 3 - 14 1,272 744 79 449 - 3 - 3 -16 - 1 - 9 - 8 - 35 - 5 1/ Seasonally adjusted annual rate; preliminary. The Domestic Financial Situation The seasonally adjusted money supply showed a sharp $1.4 billion increase in the first half of March (based on preliminary data). This brought the level to $160.2 billion, about the same as in the first half of January. The early March increase was associated in part with an unusually large reduction in U. S. Govern- ment deposits following a greater-than-seasonal build-up in February. Seasonally adjusted time and savings deposits at all commercial banks increased $700 million over the first half of March. This was at a little slower pace than growth in the second half of February and substantially below the sharp expansion earlier in the year. Credit expansion at New York City banks was large over the two weeks encompassing the March tax and dividend payment period although slightly smaller than last year's unusually sharp rise. Corporate tax payments were estimated to be a little higher than in March last year but there were more tax bills and CD's maturing to meet tax payments this year. Business loans at New York City banks, however, rose by a record $483 million in the week of March 17. Combined with the pre- vious week's decline, business loan expansion over the two weeks, while larger than in the corresponding weeks of the previous two years, was not as large as in 1961 and 1962. Borrowing was particu- larly heavy in the metals group, while inventory accumulation has been continuing, but most other major cyclically-oriented industries also increased their borrowings. Credit extended indirectly to businesses (e.g., through dealer and finance company loans and changes in bill holdings and outstanding CD's declined slightly over the tax period. March 19, 1965. Errata Sheet For CURRENT ECONOMIC AND FINANCIAL CONDITIONS March 17, 1965 S-- T - 1 Amount Latest Period Latest Precedg Period Period Industrial Production (57-59-100) Feb.'65 138.8 Chart II -- C - 1 B-1 APPENDIX B: LABOR FORCE PROJECTIONS TO 1970 138.1 Year Ago 128.2 Per cent change Year 2Yrs. Ago* Ago* 8.3 15.1 

Federal Reserve (1965, March 22). Greenbook/Tealbook. Greenbooks, Federal Reserve. https://whenthefedspeaks.com/doc/greenbook_19650323_part3

@misc{wtfs_greenbook_19650323_part3,
  author = {Federal Reserve},
  title = {Greenbook/Tealbook},
  year = {1965},
  month = {Mar},
  howpublished = {Greenbooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/greenbook_19650323_part3},
  note = {Retrieved via When the Fed Speaks corpus}
}