Review Of The Mineral-Fuel Industries - General Summary

1962 was the second year of recovery from the mild 1960-61 recession. The year-to-year gain in constant dollar gross national product, our most comprehensive measure of the country's economic performance, was 6.0 percent (from $447.7 billion in 1961 to $474.8 billion in 1962). The unemployment rate declined from 6.7 percent to 5.6 percent. Although it was a good year, there were still unused resources of labor and capital which implied that the economy was operating below its potential. The year-to-year change in the Federal Reserve Board (FRB) index of industrial production of 7.6 percent masked the fact that more than one-third of the growth took place within 196L The monthly index rose only 4.8 percent during 1962, from 114.3 in January to 117.8 in September. The fact that the economy as shown by the industrial index, rose rapidly in the first half of the year only to remain on a plateau of 119-120 during the second half, led some people to fear an imminent downward turn. This did not occur. Neither production nor consumption of mineral fuels advanced as fast as the total economy. But consumption showed more gain than production, 5 percent compared with somewhat less than 4 percent. Production of both crude oil and natural gas reached new highs while bituminous coal production was the highest in 5 years.