Review Of The Mineral Industries (Metals And Nonmetals Except Fuels)

The U.S. economy boomed in 1965, completing its fifth consecutive year of expansion. Although the advance was somewhat irregular, previous records for production, sales, employment, and income were topped. During the first few months of 1965, as the economy recovered from the depressing effects of the automobile strikes of late 1964, increases were unusually large. The gains moderated in early spring, but were stimulated at midyear by sharply rising capital outlays, excise tax cuts, in? creased Social Security payments, and accelerated Viet-Nam defense expenditures. Gross national product (GNP) in cur-rent dollars rose $49.5 billion or 7.8 percent, to a total of S681.2 billion. In constant dollars (effects of price changes eliminated), GNP increased 5.9 percent, a rate considerably higher than the historical postwar annual average growth of 3.5 per-cent. Demand increased in most final markets and was especially strong for business fixed investment and consumption expenditures. With the exception of construction, most of the increases in GNP were real, since prices increased less than 2 percent.