Review Of The Mineral Industries

The recession of 1974 continued into 1975. Real gross national product (GNP), measured in 1972 dollars, declined significantly in the first quarter of 1975 but rose slightly in the second and increased sharply in the third quarter. Unemployment peaked during the second quarter and then declined slowly for the balance of the year. The inflation rate declined owing to reduced demand and smaller-than-1974 increases in energy and food prices early in the year. Recovery was clearly evident by yearend, though un-employment and inflation remained at high levels. Total output as measured by the GNP in current dollars rose 6.5% in 1975. Real GNP declined 2.0%, and inflation, as measured by the implicit price deflator, increased 8.7%. Real gross private domestic investment for residential structures declined 18.1% in 1975, which was a smaller rate of decrease than the 27% decline in 1974. Real State and local Government purchases increased 2.4%, and real personal consumption expenditures for services rose 1. 7 %. The Federal Reserve Board (FRB) index of industrial production declined 9.7%.