Review Of The Mineral Industries

The continuing high-level performance of the domestic mineral and mineral fuels industries during 1966 was sustained by the longest business upturn in the Nation's history. Spurred by consumer demand at home and the defense production requirements of the Viet-Nam war, the rising trend of economic activity during the year was reflected in the upward movements of the major economic indicators. At yearend the gross national product (GNP), representing the value of all goods and services produced, stood at $740 billion, $58 billion greater than in 1965. Corrected for price changes, the real value of GNP in terms of 1958 dollars was $648 billion and represented an annual increase in economic activity of 5.4 percent. Some 74 million persons were employed during the year out of a total population of 196.8 million, while unemployment fell below 4 percent. The Federal Reserve Index of Industrial Production averaged 156 for 1966, up 13 points from the previous year. However a jarring note in the 1966 expansion, and one which affected the mineral industries in particular, was the increasing pressure on prices and the threat of inflation. From 1961-65 economic growth was facilitated by relatively stable wages and prices and only mild inflation. During the period average wholesale prices hardly moved while average consumer prices rose only about I percent per year. But this long run of relative price stability ended during 1966 when consumer prices rose 2.9 percent and wholesale prices were up 3.2 percent from the previous year.