Materials And The National And International Economies - General Performance

Despite modest improvements in the performance of domestic interest rates and gross national product,1 fixed investment in domestic producers' durable equipment continued to weaken during the second quarter of 1982 and declined at a 12.8 percent annual rate compared with the first quarter.2 Large declines occurred during the second quarter in expenditures on many of the major mineral-consuming industries such as aircraft, computers, agricultural and construction machinery and mining and oil field equipment. These data appear to be consistent with the low level of business investment plans for 1982 reported in the DOC's Bureau of Economic Analysis survey of expenditures on new plant and equipment.3 Domestic and foreign industrial production and mineral industry production activities continued to decline in the most recent period because of weak demand conditions (Tables 1 and 2). The U.S. mining production index declined 7.7 percent between April and June as compared with 1.2 percent for total U.S. industrial production (Table 1).