Review Of The Mineral Industries

The U.S. economy was considerably stronger in 1976 than in 1974 or 1975. Real gross national product (GNP) rose sharply in the first quarter of 1976 and then increased at a more moderate rate for the remainder of the year. The unemployment rate fell until June and then increased for moat of the remainder of the year, finishing at the same rate as it had started the year. The inflation rate continued to decline in 1976. Reasons for the relatively low rate (compared with those of 1974 and 1975) included small increases in food prices and only moderate increases in energy prices. Total U.S. output measured in terms of GNP increased 11.6% in 1976. Real GNP in 1972 constant dollars rose 6.2%. Inflation as measured by the implicit price deflator increased 5.1%. In real terms, gross private domestic investment for residential structures rose 22.7% in 1976 after declining 14.7%a in 1975; State and local Government expenditures increased 1.4% in 1976; and personal consumption expenditures for services rose 4.5%. The Federal Reserve Board (FRB) index of industrial production increased 10.2%.