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. SUPPLEMENT CURRENT ECONOMIC AND FINANCIAL CONDITIONS Prepared for the Federal Open Market Committee By the Staff Board of Governors of the Federal Reserve System May 19, 1967 SUPPLEMENTAL NOTES The Domestic Economy Personal income in April rose $1.4 billion, to $614.1 billion, seasonally adjusted annual rate. This was the smallest monthly rise in a year but, even so, total personal income was 7.6 per cent above a year earlier. Total wage and salary disbursements rose as payrolls in government and in service industries increased about in line with recent trends and offset small declines in payrolls in manufacturing and distributive industries. A small decline occurred in transfer payments reflecting the effect of concentration of the payments of annual dividends on Veterans' life insurance policies in February and March. Small increases occurred in social security benefits and unemployment compensation. New orders received by durable goods manufacturers in April edged up .5 per cent from March and were at about the monthly average for the first quarter, according to Census advance figures. April orders were 12 per cent below last September but, on balance, have changed little since January. Bookings by machinery and equipment producers were up 3.5 per cent in April, following a 2 per cent gain in March. defense products continued at about the February-March level. Orders for Orders for motor vehicles rose and orders for iron and steel also were higher but continued below those during most of last year. Orders for fabricated metal products declined as did orders for electrical machinery, aircraft, and nonferrous metals. - 2Shipments by manufacturers of durable goods declined nearly 2.5 per cent in April, according to the advance figures, and were less than in any month in more than a year. (This relatively large decline in shipments probably resulted in part from work stoppages in the trucking industry.) Of the major industry groupings only producers of motor vehicles and parts reported a rise from March. April shipments of nonelectrical machinery producers were unchanged while declines in the other major industry groupings ranged from 1.7 per cent in machinery and equipment to 6.8 per cent in fabricated metals. Unfilled orders of durable goods producers taken together declined further in April, despite the relatively large decline in shipments, from the peak in December. Only order backlogs for aircraft and parts rose from March and this rise pushed their unfilled orders to a new high. Backlogs of machinery and fabricated metal products at the end of April were at the levels prevailing in late summer or early fall, while those of producers of primary metals have been worked down to the total at the end of 1965. Capital appropriations of the manufacturing industry (confidential until release by NEWSWEEK Monday, May 22) declined 10 per cent in the first quarter of this year, according to the just-completed National Industrial Conference Board survey of the 1000 largest manufacturing companies. Capital expenditures by these manufacturers also declined--by 1.4 per cent. (This contrasts to the cutback of only about .5 per cent indicated by the February Commerce-SEC survey of business -3plans for plant and equipment expenditures.) The backlog of unspent appropriations, as a result of this decline, was down 2.0 per cent; this was the first such decline in more than four years. Nevertheless, first quarter closing appropriation backlogs were 3-1/2 times peak expenditures in the final quarter of last year. All of the first quarter decline in new capital appropriations was at durable goods manufacturers, where they declined nearly a fifth from the final quarter of 1966. New appropriations of durable-goods producers have been declining since the second quarter of last year, and this year's first quarter capital set-asides were 25 per cent less than at that time. First quarter capital expenditures of these durable- goods producers rose slightly further, in contrast to the small decline indicated by the February Commerce-SEC survey. At nondurable goods industries, capital appropriations were unchanged from the fourth quarter and 8 per cent below the first quarter of last year. Capital expenditures continued to exceed net new appro- priations and unspent appropriations, which began to be worked down after the second quarter of last year, declined further. International developments The $1.3 billion U.S. deficit on official reserve transactions in the first quarter had a substantial counterpart in the improved position of sterling. The geographical counterparts to the U.S. deficit in the first quarter, as well as to the surplus in 1966, are illustrated in the table below. It will be noted that in both periods there were -4substantial increases in net U.S. liabilities to Asian countries, Partial reflecting expenditures connected with operations in Vietnam. data for April on changes in foreign countries' reserves suggest that the pattern observed in the first quarter continued last month. CONFIDENTIAL U.S. OFFICIAL RESERVE TRANSACTIONS-/ (Millions of dollars, not seasonally adjusted) Memorandum: Reported changes in foreign reserves 1966 U.K. Other W. Europe Canada Latin America Asia Other countries IMF and unallocated U.S. payments balance 1967 1967 Q-1 -1, 17 9 +190R / -570 -200 +670 +130 +710 -240 +1,020 + 20C - 60 + 90 +140 + 70 +1,280 +240 -1,280 1967 1966 Q-l / +100 + 1 , 3 0 0 b' -334 -130 +550 +270 +1,760 +160 -700=' - 12 +125 + 75 +140 +500 April (partial) +145 -200 = ' + 15 +180 +100 -100 +140 1/ Increases in U.S. liabilities to foreign official accounts (not including foreign holdings of U.S. securities other than Treasury securities), less U.S. acquisitions of gold and other reserve assets. incom2/ From IMF International Finance Statistics; for 1967 Q-1 still plete. a/ Includes B.I.S. b/ Excludes B.I.S. Reported changes in foreign countries' gross reserves have differed markedly from data on U.S. net liabilities because of shortterm assistance (United Kingdom), gold transactions not involving the United States, and changes in other reserve assets that are not liabilities of the United States (sterling, Euro-dollars, etc.). Nevertheless, except for the U.K. and for other Western Europe, the direction of reported reserve changes generally parallels the direction of change in net U.S. liabilities. Corrections to Greenbook. Mav 18, 1967 Page II - 6, line 5 of table: Personal consumption expenditures for durable goods in Quarter III, 1967, should read 70.9. Page II - 7, line 13 of table: Per cent change in personal consumption expenditures for durable goods in Quarter III, 1967, should read 8.6. Page II - 7, line 18 of table: Per cent change in business fixed investment in Quarter III, 1967, should read 2.0. Page II - 17, line 3. Change March to April. Attached is an updated version of the page I - T - 1 table. Also attached is the table on page III - 7 with the figures lined up with the stubs. - 6- UPDATED I -- T- 1 May 19, 1967 SELECTED DOMESTIC NONFINANCIAL DATA (Seasonally adjusted) Latest Amount period Latest Preced'g period period Civilian labor force (mil.) Unemployment (mil.) Unemployment (per cent) Apr'67 11 " Nonfarm employment, payroll (mil.) Manufacturing Other industrial Nonindustrial Industrial production (57-59=100) Final products Materials Year ago 76.7 2.8 3.7 76.5 2.8 3.6 75.3 2.8 3.7 1.9 1.1 65.6 19.2 8.1 38.3 65.5 19.4 8.2 38.0 63.4 18.9 8.0 36.4 3.6 1.6 0.7 5.2 9.1 7.8 4.3 10.8 156.4 156.5 156.4 153.9 152.9 154.5 1.3 2.4 0.9 10.6 12.2 9.4 105.3p 105.1 101.3 103.6e 105.7 105.1 101.9 104.6 105.5 103.6 105.4 108.7 -0.2 1.4 -3.9 -4.7 3,5 3.4 -0.1 3.4 115.0 107.8 114.2 126.3 2.7 2.1 0.3 5.2 5.5 2.9 6.8 7.9 3.7 1.2 8.1 6.4 Apr'67 Mar '67 if Consumer prices (57-59=100)1/ Commodities except food Food Services Mar '67 114.8 107.6 114.2 125.9 112.0 105.6 113.9 120.1 Hourly earnings, mfg. Weekly earnings, mfg. Apr'67 2.80 2.79 " 112.90 112.44 2.70 111.57 Personal income ($ bil.)2/ " II " 614.1 612.7 570.5 77.3 81.8 82.7 -6.5 25.7 7.6 6.3 25.8 7.2 6.1 24.9 7.9 5.8 2.9 -3.6 9.4 12.3 1,171 40.5 22.2 3.5 90.96 1,161 40.4 22.1 3.4 89.42 1,502 41.5 24.2 3.5 -22.0 -2.4 -8.1 -2.0 91.60 -0.7 -24.5 -1.2 0.9 11.7 3.4 Mar'67 136.9 136.8 123.6 10.8 20.5 QI '67 763.7 759.3 721.2 5.9 15.6 656.7 657.2 640.5 2.5 Corporate profits before tax($bil.)2/ QI'67 Apr'67 Retail sales, total ($ bil.) Autos (million units)2/ GAF ($ bil.) If Selected leading indicators: Housing starts, pvt. (thous.)2/ Factory workweek (hours) New order% dur. goods ($ bil.) New orders, nonel. mach. ($ bil.) Common stock prices (1941-43=10) Inventories, book val. ($ bil.) Gross national product ($ bil.)2/ Real GNP ($ bil., 1958 prices)2/ data. ** Based Based on on unrounded unrounded data. 3.5 -20.6 155.9 156.5 155.9 Wholesale prices (57-59=100)1/ Industrial commodities Sensitive materials Farm products, foods and feeds Apr '67 Per cent change Year 2 yrs. ago* ago* " 1/ Not seasona lly adjusted. i/ Not seasona lly adjusted. 7.6 2/ Annual rates. 2/ Annual rates. 17.5 3.8 -7.8 22.0 - 7Corrected form of Greenbook table on page III - 7 SOURCES OF CREDIT TO TOTAL BORROWING (Billions of dollars at seasonally adjusted annual rates) 1966 Total borrowing I 1966 IV 1967 I 71.1 84.1 53.5 70.1 44.2 55.3 40.5 60.6 2.9 2.8 7.5 7.6 12.3 15.1 4.6 32.4 7.3 8.1 13.6 9.7 13.0 14.6 9.4 7.5 11.5 16.4 -14.0 18.3 7.5 -0.5 19.9 11.3 -5.1 22.6 1.9 -4.0 15.1 .9 -2.4 11.0 Sources of credit: Private domestic nonfinancial sectors Demand deposits and currency Time and savings deposits at banks Savings accounts at savings institutions U.S. Gov. securities Other securities Federal loan programs Federal cash balances Other sources Correction is in alignment of stubs and figures. No new figures. 

Federal Reserve (1967, May 22). Greenbook/Tealbook. Greenbooks, Federal Reserve. https://whenthefedspeaks.com/doc/greenbook_19670523_part1

@misc{wtfs_greenbook_19670523_part1,
  author = {Federal Reserve},
  title = {Greenbook/Tealbook},
  year = {1967},
  month = {May},
  howpublished = {Greenbooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/greenbook_19670523_part1},
  note = {Retrieved via When the Fed Speaks corpus}
}