Family Economics Review [1964, Number 4]

              For Building U
~
MICS
EW
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Commmer and Food Economics Research Division, Agricultural Research Servke•,
UNITED STATES DEPARTMENT OF AGRICULTURE~~%~~~~~
A quarterly report on current developments in family and food economics and economic aspect·s
of home management, prepared for home economics age~ts and home economics specialists M
the Cooperative Extension Service. THE
PROPERTY OF
ANNUAL OUTLOOK ISSUE
LIBRARY
JAN 7 1965
CONTENTS UNIVI::RS.IT'f' OF N\.1~< I H CAROLINA
AT GREEN ORO
National Economic Situation and Outlook for 1965 .....
Food Consumption and Prices .....•....•..••.....•.•.••
Clothing and Textiles: Supplies and Prices •.••.••.•.
New Developments in Textiles ....•..........••••......
Housir1g ............•..........•••••.•••••..••••.••..•
Household Equipment .....•.•.....•.....•..•....••.•.•.
Costs of Higher Education ...................•...•.•..
Consllm.er Prices ......... ~ ........................... .
The Estimated Cost of 1 Week's Food ...••..•..••.•••.•
ARS 62-5
December 1964
3
6
9
14
16
19
24
26
27
)
The articles in this issue are condensations
of papers presented at the 42nd Annual National
Agricultural Outlook Conference, held in ~ash­ington,
DoCo, November 16-19, 1964o
-
Mention in this publication of commercial com­panies
and products does not imply endorsement
of any particular commercial concern or producto
-3-
NATIONAL ECONOMIC SITUATION AND OUTLOOK FOR 1965
Rex F. Daly
Economic Research Service? USDA
The economy this fall continues its vigorous expansion. Advances in in­comes
are leading to increased purchases by consumers and business. The
generally well-balanced and healthy growth now underway will likely extend in­to
1965.
The Current Economic Situation
The reduction in income tax rates last spring diverted income into the
hands of consumers and business. The rise in after-tax incomes of consumers
accelerated sharply in the first and second quarters of 1964, and in the third
quarter was some 8 percent above a year earlier. The consumer responded by
increasing his expenditures by 7 percent over third quarter 1963. Durable
goods sales rose 13 percent, nondurables 6 percent, and services 6 percent.
But the consumer did not spend all his added income. Personal savings moved
up sharply. Some savings went to retire consumer indebtednessj some found its
way into savings and loan shares and other liquid assets.
Growing demands and larger business incomes in 1964 have increased out­lays
for plant expansion and for replacement and modernization. Business in­vestment
in new plant and equipment is estimated for the third quarter at a
rate ll percent above a year earlier; outlays in manufacturing industries are
up 17 percent.
Residential construction is the only major sector of the economy that has
weakened in 1964. Outlays in the third quarter were about 8 percent below the
first quarter. New housing starts declined from a peak annual rate of nearly
1.9 million units in October 1963 to less than 1.5 million in the third
quarter of 1964. Both apartments and single-family units declined.
Government expenditures continued to rise in 1964. The uptrend in ex­penditures
by State and local governments accelerated, but that for Federal
outlays was slower. Government revenues were equal to government expenditures
in first quarter 1964. With the cut in tax rates, revenues in the second
quarter were at an annual rate $7 billion smaller than expenditures.
Advances in consumer buying, business investment, and State and local
government expenditures pushed the Gross National Product up nearly 7 percent
above 1963. Real output of goods and services increased 4.5 percent. The
rate of unemployment in the third quarter was down to about 5 percent, from
5.5 percent a year earlier.
-4-
The Outlook for 1965
The strong advances in economic activity now underway will extend into
1965. Prospects point to further increases in output, employment, and con­sumer
income. Although a larger-than-average advance is indicated, it prob­ably
will not match 1964's gain in the G!'oss National Product.
Business.--Some private surveys report that business plans capital out­lays
5 to 10 percent larger in 1965 than in 1964. Prospects for expansion of
demands as well as increased profits, reduced tax rates, and other inducements
provide the incentives and financing for larger capital outlays. The uptrend
in business investment is expected to continue in 1965.
A rise in economic activity in coming months will step up demand for in­ventory
stocks. Auto stocks are well below desired levels. Steel inventories
are expected to build up.
Foreign trade.--Net exports rose by about two-thirds so far in 1964 above
the first 3 quarters of 1963. Exports of farm products figured importantly
in improving the goods-and-services trade balance, reducing the balance-of- .
payments deficit. Agricultural exports are expected to continue near record
levels in 1965. Some progress has been made toward a solution of balann.e-of­payments
problems, but they are expected to continue.
Housing.--Expenditures for residential construction are expected to de­cline
further in early 1965, in view of the cutback that has taken place in
housing starts. However, much of the adjustment in housing probably is be­hind
us. Factors affecting the demand for housing are becoming more favor­able.
Consumer incomes are high and risingj financing is available at stable
interest ratesj the marriage rate and labor force are beginning to reflect
the impact of the World War II baby boom.
Consumer buying.--Surveys indicate that consumers are generally opti­mistic.
Their reported buying plans for new automobiles, appliances, home
furnishings and other household durables for the next several months are well
above a year ago. Consumer purchases of goods and services are expected to
increase and again provide most of the demand expansion in prospect for 1965
(figure 1). However, the big gains in sales of durable goods in 1964 may be
difficult to match.
Consumer expenditures for food are expected to increase, though not as
much as in 1964. The uptrend in consumer outlays for services continues.
Reasonable price stability appears likely. The gradual uptrend in con­sumer
prices is expected to continue, due largely to rising costs of services.
Increased employment and rising wage rates will increase consumer incomes.
-5-
INCOME AND EXPENDITURES
$ BIL.
Consumer disposable
400 t-------+----
100
1956 1958 1960 1962
SOURCE' U.S. DEPARTMENT OF C0Mo\4ERCE AND COUNC I L OF ECONOMIC ADVISERS. * ESTIMA T E FOR JRD QUARTER 1964 BYERS.
1964
U. 5. D EPARTMENT. OF AGRI CUL TURE N EG. ER S 211 9 -64 ( 10 ) ECO NOMI C R ESE AR CH SE R V ICE
Government .--Government expenditures are expected t o increase further in
1965, due primarily to outlays of State and local governments . Their expendi­tures
will increase as they hire more employees and expand schools, roads, and
other facilities for a growing urban population . Purchases by the Federal
Gover nment likely will continue rather steady. The recently released Review
of the 1965 Budget shows budget expenditures for fiscal 1965 down about $0 .5
bil lion below fiscal 1964 . Compar atively large cuts are estimated for defense
and farm pr ice suppor t operati ons , partly offset by increases for the National
Aeronautics and Space Agency, the poverty program, and some other functions.
Summa.ry .--The economic picture outlined for 1965 adds up to another
better- than- average advance in economic activity resulting in rising output,
employment , and consumer incoru.e . However, the strength of the advance will
depend on the willingness of the consumer to buy and to incur debt, on pos­sible
changes in monetary policy, on the size and nature of possible tax ad­justment,
and on international developments . At present , there appear no
obvious s i gnals that would suggest anything but continued advance in economic
activi t y.
-6-
OUTLOOK FOR FOOD CONSUMPTION AND PRICES
Stephen J. Hiemstra
Economic Research Service, USDA
Food expenditures in 1964 are about $80 billion, up 5 percent from 1963 .
The gain is due to price increases, increased population, larger consumption
of food per capita, and more and higher priced marketing services. Retail food
prices in 1964 have averaged a little more than 1 percent above the same months
of 1963. Population is larger by about 1.4 percent. Per capita food con­sumption
is nearly 1 percent higher. Disposable personal income is nearly 7
percent above 1963.
The outlook is for continued advance in incomes, but the gain is not ex­pected
to match that of 1964. Retail price increases may be smaller, and per
capita food consumption is expected to remain about equal to 1964's high level.
Food Consumption Per Capita
The 1964 increase of nearly 1 percent in per capita food consumption is
due largely to increased consumption of animal products. Large increases for
beef and turkey outweigh small declines for pork and lamb. Consumption of
food from crops is increasing only slightly. Gains for fresh fruits, mostly
apples and citrus, are nearly offset by declines for potatoes and some other
vegetables.
The outlook for 1965 is for per capita consumption to about equal 1964
levels. Some further increases in consumption of beef and perhaps turkey may
be about balanced by continuing declines for pork and lamb. On the crop side,
the only important change f oreseen is a moderate increase in fruit consumption,
principally processed fruits. Consumption of citrus is expected to rise from
depressed levels in 1963 and 1964 that were partly due to the Florida citrus
freeze.
Animal Products
Beef.--A gain of about 10 percent in beef production is leading to an in­crease
of about 6 percent in per capita beef consumption in 1964, to reach a
total of about 100 pounds. Population growth and a cut in imports account for
the difference between the production and consumption increases. Retail prices
of beef and veal ar~ averaging about 4 percent lower than 1963. The outlook
for 1965 is for a continued increase in beef consumption, but at a reduced
rate. Retail prices may again decline.
-7-
Pork and lamb.--A small decline in pork production per capita and a
sizable decline in lamb production is resulting in higher prices and reduced
consumption of these meats in 1964. Continued declines in production are
anticipated for 1965, so further price advances can be expected.
Poultry and eggs.--Poultry consumption is continuing upward in 1964.
Most of this increase is in consumption of turkey, which is rising about 7
percent. Broiler use continues to gain. The outlook is for poultry consump­tion
to increase slightly again in 1965. Egg consumption in 1964 is about
equal to 1963's average of_315 eggs per capita. Retail prices are averaging
lower for both poultry and eggs; these trends, at least for turkey and eggs,
are expected to continue into 1965.
Dairy products.--Per capita consumption of total dairy products is re­maining
about the same as in 1963. Nonfat dry milk consumption is rising
rather sharply. Low-fat fluid milk and cottage cheese consumption also are
increasing, but small declines are occurring in consumption of evaporated
whole milk and fluid cream. Generally, per capita consumption of solids­not-
fat has not declined as much as consumption of milkfat. Retail prices in
1964 are a little higher than in 1963; for 1965, they may hold about steady.
Fats and oils .--Consumption of edible animal fats per capita is declining
again in 1964, as a result of a sizable decline in lard consumption. About a
1-percent increase is taking place for vegetable oils. Margarine and shorten­ing
use are both rising. Consumption of total fats and oils is holding about
even at 47 pounds per capita.
Foods From Crops
Fruits.--Fruit consumption per capita is rising about 3 percent in 1964
from sharply depressed levels of 1963. The increase is occurring both for
citrus and noncitrus fruits. Consumption of fresh citrus is rising around 4
pounds per capita, but that of processed citrus, both canned and frozen, is
below 1963 levels. The outlook for 1965 is for citrus to recover strongly
from low consumption during the last two years but still not reach the level
of earlier years.
Noncitrus fruit consumption also is rising, spearheaded by a large gain
in apple consumption. Reduced packs from last year's crop and higher prices
have resulted in decreased use of canned noncitrus fruits and juices, but con­sumption
of frozen fruits and juices have continued to rise. The 1964 pack is
larger for many items, such as canned peaches and fruit cocktail. As a result,
noncitrus consumption is expected to rise next yea:r, particularly for processed
fruits. The rising retail prices of fruits during the past two years are ex­pected
to give way to price declines in 1965.
-8-
Vegetables.--Per capita consumption of vegetables is declining about 2
percent in 1964. Declines are occurring for both canned and fresh vegetables,
though consumption of frozen vegetables (excluding potatoes) is continuing to
rise. Retail prices have averaged higher in 1964. They are expected to re­main
above year-earlier levels through the winter, then decline from 1964's
highs. Consumption next year is not expected to differ much from 1964.
Potato production is down sharply and prices are higher than for many
years. Consumption is declining about 2 pounds per capita. The decline is
in fresh potatoes; consumption of processed potatoes, for example frozen
french fries, is continuing to rise. Potato production in 1965 is likely to
increase, so retail prices are expected to average much lower than in 1964.
Sugars.--Per capita consumption of sugars and other sweeteners in 1964
is remaining about the same as in 1963. However, substitutions are taking
place among them as use of corn sugar and sirups gains. Sugar prices began
1964 much above year-earlier levels, but since then have declined to a level
a little above those of early 1963.
Cereals and grain products.--Per capita consumption of cereal and grain
products is about stable in 1964, aside from a slight increase for rice.
Wheat" flour may total the same as 1963's 116 pounds, and not differ much next
year. Some price increases have occurred, but the average for all cereal and
bakery products has not increased as much as usual.
Coffee.--Retail coffee prices rose sharply during the first half of 1964
in response to rising prices of green coffee beans resulting from anticipated
lower production in Brazil. After that, prices stabilized and some declines
took place for instant coffee. Coffee prices in 1964 are averaging about a
fifth above 1963; consumption per capita is down slightly. Little change in
prices and consumption is anticipated in 1965.
Retail Food Prices
Retail food prices in 1964 are averaging about 1 percent above 1963.
(See chart.) Prices may not rise as much in 1965. The upward pressure on
prices of foods from crops in the past two years likely will not be repeated
in 1965. Increased production of fruits and potatoes are expected to ease
prices for these items. No repeat of price increases for sugar and coffee
are foreseen. Continued large consumption of animal products is expected to
maintain average retail prices near current levels. Certain foods no doubt
will continue to increase in price, particularly highly processed products
such as cereal and bakery products. Prices of food purchased and consumed
away from home may rise. Although some rise in the average price of all
food is anticipated, it likely will be less than that of the entire Consumer
Price Index.
-9-
RETAIL FOOD PRICES
% OF 1950
Cereal
140
v egetables
120 I
100
80
60 A
1950 1954 1958 1962 1966
BASED ON DATA OF BUREAU OF LABOR STATISTICS. • EXCLUDES BUTTER. A 9-MONTH RATE •
U.S. DEPARTMENT OF AGRICULTURE NEG. ERS 2188-64 ( 11) ECONOMIC RESEARCH SE RVI CE
CLOTHING AND TEXTILES: SUPPLIES AND PRICES
Virginia Britton
Agricultural Research Service, USDA
No startling changes have occurred in overall consumption, prices, and
supplies of clothing and textiles during the last year . Consumer prices have
risen slightly, as have wholesale prices. Supplies of clothing and raw mate­rials
continue high. Per capita consumption (in constant dollars) of clothing
and shoei, excluding services, remained about the same as in recent years.
The Consumer Expenditure Survey of 1960-61, a nationwide survey made by
the U. S. Department of Ag~iculture and the Bureau of Labor Statistics, showed
1961 expenditures of families (including single consumers ) on clothing, mate­rials
, and clothing services averaged $563 for urban, $408 for rural nonfarm,
and $427 for farm families . The estimated average for all U.S. families was
$522 .
-10-
Consumer Prices
Apparel in the Consumer Price Index.--The Consumer Expenditure Survey pro­vided
the Bureau of' Labor Statistics the basis for revising the Consumer Price
Index. From data :furnished by urban wage earners and clerical workers~ the BLS
has developed a new list of' goods and services to be priced, and has assigned
new weights to items priced so that these reflect buying patterns in 1960-61.
The weighting factor for apparel and upkeep is about the same in the new
series index as in the old (table 1). However~ weights assigned apparel sub­groups
have been changed. Increased weights for 3 apparel subgroups--espe­cially
Women's and Girls' Apparel,. but also Men's and Boys' Apparel and Foot­wear--
are balanced by decreased weight for Other Apparel. Most of' the decreased
weight for Other Apparel is in services rather than commodities. The increased
weight for Women's and Girls' Apparel is divided about equally between women's
apparel and girls' apparel. In Men's and Boys' Apparel the increased weight
for boys' apparel more than balances the decreased weight for men's.
The "market basket" ( al.l items priced) for the CPI has been increased from
about 325 to 400 items. While the new basket includes many items that were in
the old, it excludes some. The changes do not necessarily mean that the items
dropped are less important in family spending than a decade ago, or that the
new items are more important. Each basket is composed of' items whose price
changes best repre.sent price movements of' the thousands of' items purchased by
urban wage earners and clerical workers at the time the basket was deve.loped.
The new market basket for Apparel and Upkeep includes 77 items, 7 more
than the old. Thirty of' these items (such as tropical suits,. T-shirts, and
handkerchief's for men) were not included in the old series. Excluded from the
new series are some 20 items that were in the old (such as men's sweaters,
rayon suits, and dungarees). Some items now in the Other Apparel group have
been shifted from another group: Shoe repairs were shifted from Footwear,. dry
cleaning and laundry services from Household Operation. The number of' items
priced for each apparel group in the new and old series is shown in table 1.
Consumer price levels.--The consumer price level for apparel advanced
slightly over the past year, as measured by the Apparel and Upkeep component
of' the Consumer Price Index (table 2 ). In the latest .12-month period for which
data are available, September 1963 to September 1964, this component of' the
index increased 0.5 percent. In the same period the Consumer Price Index for
all items rose 1.2 percent. The apparel component has usually risen more
slowly in recent years than has the ali-items index.
As frequently happens, price .levels for apparel subgroups have increased
unequally in the past year. The index for men's and boys' apparel advanced
1 .3 percent from September 1963 to September 1964, while the indexes for
women's and girls' apparel and for footwear changed little. In recent years ~
men's and boys' apparel or footwear has led the price advance.
Prices for apparel of' various fibers have changed at different rates. In
the last 12 months for which prices of' apparel of cotton and manmade fibers
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Table 1.--Number of items priced and relative importance of
Apparel and Upkeep subgroups of the Consumer Price
Index, new and old series, December 1963
Number of Percent of
Subgroups
Apparel and Upkeep ........ .
Men's and boys ' apparel ..
Men's apparel ......... .
Boys ' apparel ......... .
Women's and girls' apparel
Women's apparel ....... .
Girls' apparel ........ .
Footwear ................ .
Street shoes, men's ... .
Street shoes, women's ..
Other priced items .....
Other apparel ........... .
Commodities ........... .
Services .............. .
items priced
New Old
.aerie? y series
77 70
19 29
15 23
4 6
35 26
26 20
9 6
11 7
2 2
2 2
7 3
12 8
6 3
6 5
all items
New Old
gJ series y series ?}
10.63 10.58
2.86 2.79
2.21 2.37
.65 .42
4.o8 3.67
3.23 3.02
.85 .65
1.51 1.41
.26 .33
.26 .41
·99 .67
2.18 2.71
.71 .72
1.47 1.99
!/ Index for families and single workers. ?J Individual items reclass~ied according to new series classification
into groups and subgroups.
Source: Bureau of Labor Statistics.
are available (June 1963 to June 1964), cotton apparel rose 0.4 percent and
apparel of manmade fibers rose 0.8 percent. Prices of wool apparel advanced
3 percent between December 1962 and 1963 (last 12 months available).
Developments in Retail Distribution of Apparel
Evidence is accumulating of increased mail order buying. The four big
mail order houses report sales at 10 percent or more above a year ago. Appeals
are in terms of price--with a net saving of 7 percent over its store price
estimated by one mail order house--as well as convenience of home shopping,
quick delivery, telephone orders, and fashion merchandise, including
-l2-
Table 2. Percentage change in selected indexes of consumer prices ~
Index
Consumer Price Index .........•........
Apparel and Upkeep Index gj ~ ..... .
By type:
Men's and boys' apparel ......•..
Women's and girls' apparel ..•...
Footwear ....••.•.....••.•.......
By fiber:
Cotton apparel ................. .
Wool apparel ..•..••..........•..
Manmade fibers apparel ......... .
1961 to
1962
+1.2
+.6
+.5
-.1
+1.4
+.7
+.2
+.1
1962 to
1963
+1.2
+1.2
+1.4
+.8
+1.1
+1.0
+1.6
+.2
Sept. 1963 to
Sept. 1964
+1.2
+. 5
+1.3
-.1
+.e
J'\llle 1963 to
June 1964
+.4
+.8
~/ Revised beginning January 1964 to include single workers.
gj Recomputed retroactively according to the new classification.
}/ Also includes infants' wear, sewing materials, jewelry, and apparel
upkeep services not shown separately.
Source: Bureau of Labor Statistics.
creations of leading designers. Catalogs are larger, with more color illus­trations,
and the number of catalog order stores is increasing. Catalog sales
have been instituted by the J. C. Penney Co. Sears reports growth in catalog
sales to be outstripping growth in sales at their retail stores. At the same
time, catalog concerns are opening additional retail stores.
Trade papers report, also, expansion of door-to-door selling, emphasizing
the convenience it offers the suburban homemaker with young children. Expan­sion
in the clothing and textiles field includes door-to-door selling of
fabrics, rugs, and draperies by the J. C. Penney Co. The selling of shoes to
busy executives at their offices by the Hanover Shoe Co. may be specially
convenient for the heads of suburban households.
Discounters are expanding again, with an average of 7 new discount
stores a week estimated by the trade. Discounters appear to be moving toward
direct operation of departments in their own stores instead of leasing to
outsiders. However, they do not seem eager to take over the shoe or millinery
departments.
-13-
Wholesale Prices; Supplies
Wholesale prices.--Wholesale prices of' apparel as a whole rose 1.0 per­cent
in the 12 months ending September 1964. The largest increase was in
inf'ants' and children's apparel which rose 3.4 percent. Hosiery dropped about
1 percentJ leather footwear remained unchanged. Wool and part wool blankets
increased almost 5 percent, whereas cotton housefurnishings rose 0.5 percent.
In the year ending September 1964, wholesale prices of' broadwoven goods
of cotton declined 1 percent, and silk products declined 10 percent. Fabrics
of manmade fibers and of wool advanced, as did leather. Most noteworthy was a
10 percent rise in the wholesale price of' knit outerwear fabrics of' wool.
Sizable changes in wholesale prices of several
period will affect retail prices of apparel in 1965.
almost 24 percent, domestic apparel wools 8 percent,
cent. Raw silk dropped 12 percent, and raw cotton 7
raw materials in the same
Hides and skins advanced
and foreign wools 7 per­percent.
Supplies.--Prospective supplies of cotton, manmade f'ibers, and hides and
skins seem ample. U.S. production of cotton in 1964 is predicted to be 3 per­cent
above expected use in domestic mills and export. Use in domestic mills
is expected to be 13 percent larger than in 1963, due to an improved competi­tive
price position of cotton and cotton textiles in the domestic market.
In the f'irst 6 months of' 1964 production of manmade f'ibers (excluding
acetate staple and tow for which no figures are available) was 16 percent
greater than in the same period of' 1963. Predictions f'or the domestic man­made
f'iber industry were f'or a 20 percent increase by late 1965 in overall
production capacity (excluding textile glass f'iber).
In the world markets, production and use of wool are expected t o be near
record high levels in 1964-65, with firm prices. U.S. mills are expected to
use 6 to 10 percent less apparel wool in 1964 than in 1963 because of the
competition of' lower priced fibers.
U.S. production of hides in 1964 is expected to be sufficient f or pro­spective
increases in leather shoe production and large increases in exports
of hides. Any shortage of' Corfam, the synthetic shoe material, should be eased
when f'ull-scale production begins late in 1964. Thus far production at t he
single pilot plant has resulted in smaller rations of Corfam shoes to retailers
than some believe they could sell, even though the shoes retail for $20 ormare.
Outlook
No appreciable changes in inventories of clothing and textiles are
expected in the coming months. The retail price level for clothing will
probably edge up. Possible rises in prices for wool apparel and leather shoes
may be partially counterbalanced by some decreases in prices of cotton apparel
and silk garments, or a leveling of their prices, at least. The fiber blends
for apparel items will probably include more cotton and less wool. At tempt s
-14-
by industry to boost saJ..es of clothing and textiles in higher price lines are
likely. There will be emphasis on fashion and ensembles in clothing and
household textiles and possibly the discontinuance of some lower-priced lines.
:NEW DEVELOPMENTS IN TEXTILES
~on DuPre'> Jr.
AgriculturaJ.. Research Service, USDA
The story of developments in textiles during 1964 is primarily one of
expanded production and use of articles developed in the last few years.
This is proof that these articles have provided performance characteristics
that consumers want and will continue to buy. There has aJ..so been an increase
in the number of fabrics made from blends of three, sometimes even four,
different fibers. However, these multifiber blends are difficult for mills
to handle, and with some of them there are product-performance problems
arising from such things as differences in abrasion resistance of the fibers.
There were no new fibers with markedly different properties introduced
into clothing uses in 1964. It appears likely that for the next few years
the greatest improvements will come from modifications of existing fibers.
The development about which the textile industry is most excited is the
introduction of wash-wear garments having outstanding ability to retain their
originaJ.. shape and appearance after laundering and during wear. The new
process also permits the building in of sharp creases and pleats that are
durable to laundering.
In the production of conventional cotton wash-wear fabrics, the pro­cessing
-plant applies a wash-wear chemicaJ.., then cures it with heat. After
curing the fabric has wrinkle-resistant, wash-wear properties. However, if
sufficient wash-wear chemical is applied to give exceedingly high wash-wear
and wrinkle-resistant properties, sewing problems become more difficult and
seam puckering becomes excessive. Also, a crease put into such a fabric will
not be sharp and will disappear on washing.
During the last few years research workers have concentrated on develop­ing
what is known as a delayed cure process. In this process a chemical is
applied that will not cure when the fabric is dried and will not cure in
storage. The treated fabric is made into a garment, then pressed, introduc­ing
creases or pleats where desired. The pressed garment is placed in a
high-temperature oven to cure the chemicaJ.., setting the shape. Sharp creases
-15-
or pleats are durable to lanndering. The garment dries very smooth and has
a high degree of wrinkle-resistance during wear. Also, the seam puckering
so evident with conventional wash-wear garments is essentially eliminated.
Within the last year several satisfactory, commercially feasible pro­cesses
of this type were developed and made available to the textile and
garment manufacturing industries. Slacks, trousers, and work pants are the
principal garments now being manufactured and beginning to reach the retail
trade in volume. Sport shirts, blouses, and dresses will be in retail
stores in volume next spring and fall.
The development of wash-wear was originally centered aronnd all-cotton
fabrics, but at present most of the fabrics are a blend of cotton with either
nylon or polyester fiber. There are indications from recent research that
it may be desirable to reduce the percentage of synthetic fibers used, since
their principal fnnction is to increase strength and abrasion resistance and
not to enhance wash-wear properties. Research is being directed at improving
the performance of all-cotton fabric s so that full advantage may be taken of
the excellent comfort and launderability properties of cotton.
Another fairly recent development that is still a center of intense
interest is stretch fabrics. Articles made from stretch fabrics of all
types --all-cotton, all-wool, all-synthetic,and various combinations of these
fibers--are reaching consumers in rapidly increasing numbers. Most of the
stretch fabrics are going into apparel, but upholstery and slipcover fabrics
are being produced . All-cotton stretch fabrics are also avai.lable as piece
goods. Blending spandex with other fibers is a rapidly growing development.
Many of the earlier fabrication problems, such as obtaining an adequate
seam, are being overcome. Standards of stretch are being established. Work
is also being done on the design of garments to make full use of the new
stretch properties.
A new chemical process, now in commercial production, has been developed
for producing wool fabrics with delayed setting properties, analogous to the
delayed cure process for cotton fabrics and fabrics containing a high per­centage
of cotton. Creases or pleats are put into the finished garment and
set . Information is not yet available on comparative performance of gar­ments
durably creased by the new and the older methods.
The newest development in shrink-resistant wool articles has to do with
knit goods. It is difficult to obtain satisfactory results in the applica­tion
of shrink-resistant treatments to wool knit goods. With methods
hitherto available there is an adverse affect on the hand, or feel, of some
fabrics, and often on their appearance . However, by treating wool top, an
intermediate product in the manufacture of worsted yarns, shrink-resistant
yarns are obtained. Fabrics knitted from these yarns are shrink-resistant
and have an excellent hand. This process was put into commercial use in the
spring of 1964, and sweaters made from shrink-resistant yarns are beginning
to appear on retail connters.
-16-
More durable tents, tarpaulins, sleeping bags, boat covers, and similar
products subjected to outdoor exposure are becoming available to consumers.
They are the result of a new low-cost mildew-, rot-, and weather-resistant
treatment for cotton.
Interest in better protection from injuries by fire has focused atten­tion
on the development of flame-retardant treatments for cotton. For a
little more than a year an improved and durable type of treatment has been
on the market in volume. Articles made from flame-retardant cotton fabrics
are now being used in increasing ~uantities. The coats and trousers of the
District of Columbia firemen, for example, are made with flame-retardaJlt
cotton fabric, and the fabric for the John Ringling North circus tent at the
World's Fair was flame-retardant trea~ed. Other flame-retardant ~icles
being ·used in increasing ~uantities are patients' gowns, cubicles and drapes
in hospitals, and industrial work uniforms.
These are a few of the developments in textiles in 1964. Some of
these, such as the stretch cottons, the flame-retardant cotton fabrics, and
the shrink-resistant wool yarns, resulted directly from research of the
Department of Agriculture's Southern and Western Utilization Research and
Development Divisions. Many of the other developments are based, at least
in part, on the research of these Divisions. They cooperate closely with
industry and other textile research .laboratories in their research on
utilization of cotton and wool.
HOUSING
Henry B. Schechter
Housing and Home Finance Agency
~ere has been a decline in new housing construction in the last few
months, while other major segments of the economy have continued to move
upward. It has become apparent that housing is no longer in short supply,
as it was for a number of years after World War II. Mortgage foreclosures
have risen significantly. Vacancies in rental housing units have ranged
between 7 and 8 percent.
Housing for Special Groups
The housing needs of special segments of the population are being
recognized in current housing programs. An innovation of the Housing Act of
1961 was provision for the building of rental housing for families of moder­ate
income, through loans at below market interest rates to limited dividend,
-17-
nonpro~it, cooperative, and public agency sponsors.
rental per dwelling unit in the projects authorized
About 40 percent o~ the units would have rentals o~
11 percent rentals above $120.
The median monthly
in 1963 was under $87.
less than $80 and only
There are three Housing and Home Finance Agency programs to meet the
housing needs o~ the elderly. The ~irst, for low-income senior citizens,
is part o~ the public housing low-rent ·program. Averag-e rent ~or these units
is about $32J the median income o~ the senior citizen occupants is under
$1,500. The second program, ~or the moderate-income elderly, is administered
by the Community Facilities Administration. long-term loans at low interest
rates are made to nonprorit sponsoring organizations. Income limits vary
by locality, but the overall national limit is $4,000 ~or individuals and
$4 ,Boo ~or ~amilies. Rents averaged about $84 per month at the end o~ 1963.
The third program ~or senior citizens is ~inanced with mortgages insured by
the Federal Housing Administration and bearing interest at market rates.
Many o~ these projects provide medical care or meals, or both, as well as
shelter.
The Federally-assisted public housing program, operative in over 1,400
communities, serves low-income ~amilies o~ all ages. The income limits ~or
admission in 1963 were under $4,450 in 94 percent o~ the localities. The
median annual income o~ nonelderly occupants was under $2,600, and the
median monthly rent was $41.
Characteristics o~ New Housing
One-family housing.--During recent years single-~amily structures have
accounted for between 60 and 80 percent o~ total private housing starts. It
is estimated that 560,000 new one-~amily homes were sold in 1963. About
5 percent o~ the buyers used cash or made other nonmortgage arrangements ~or
financing, 57 percent used conventional loans, and 38 percent obtained FHA­insured
or VA-guaranteed loans.
The median price o~ the new homes throughout the country was $181 000.
It was slightly lower than $18,000 in the North Central Region, $20,000 in
the Northeast, $16,000 in the South, and $18,800 in the West. FHA or VA
financing was used for the majority of new home purchases under $15,000, and
was slightly more important than conventional financing for homes costing
$15,000-$17,500. In higher price classes conventional financing was
predominant.
The median size of new one-family homes sold in 1963 ranged from 1,005
square feet for homes priced under $121 000 to over 2 1 000 square feet for
those priced at $25,000 or more. In every price class the majority of the
-18-
homes had 3 bedrooms. Whether appliances are included in the sales price
seems to be a matter of local custom. Most of the homes sold in 1963 included
ranges, but relatively few had refrigerators, dishwashers, washing machines,
or dryers.
Multifamily housing.--Starts of private dwelling structures with 2 or
more units increased from 258,000 in 1960 to 588, 000 in 1963, or from 21 per­cent
to 37 percent of total private starts. Building permits issued in 1963
for structures with 5 or more dwelling units show that the majority of new
rental units have been in garden-type or walk-up projects. According to the
Census Bureau, monthly rentals of $100 or more characterized· 21 percent of
vacant rental units in the second quarter of 1964, compared with 15 percent
in 1963. Census data suggest a slowdown in the rate of renting newer, more
expensive units.
From the second to the third quarter of 1964 the vacancy rate for
rental housing rose from 7.4 to 7-7 percent, the highest in 2~ years.
The Outlook
No increased demand for housing is indicated for 1965. Census pro­jections
suggest that a marked increase in the number of households will
not occur for another 2 or 3 years.
Based on current market conditions, 1965 is expected to be a year of
readjustment for multifamily housing starts. A combination of high vacancy
rates, a large volume of multifamily construction over the last few years,
and slower population growth rates in a number of housing market areas-­particularly
the West--has resulted in recognition of the need to bring
supply into better balance with demand. It is estimated that multifamily
starts in 1965 will total about 525,000, a decline of close to 10 percent
from the 1964 level. This should be offset by a rise in single-family
housing starts from about 975,000 in 1964 to 1,025,000 in 1965. Total
private nonfarm housing starts would then be about 1,550,000 units, or about
the same as in 1964. The addition of public and farm housing units would
bring the 1965 total up to 1,6oo,ooo.
An increase in single-family housing starts is expected in 1965 for
several reasons. Vacancies in units for sale are low; new home sales figures
are up and unsold inventory is down; higher limits for FHA-insured loans
will reduce downpayments on higher priced homes; mortgage funds will be
abundant; continued_improvement is expected in general economic conditions.
Construction costs have increased about 6 percent for residences and
8 percent for apartments since 1960. This is reflected in higher rents and
sales prices. Rent in the Consumer Price Index has been rising about 1 per­cent
a year. The median price of new l-fami1y homes sold was $19,000 in 1964,
up from $18,000 in 1963 (due in part to larger sizes and more amenities).
-19-
OUTLOOK FOR HOUSEHOLD EQUIPMENT
Ethel D. Hoover
U.S. Department of Labor
The supply of household goods in 1965 should be ample, if trade reports
are any indication. Production is currently at an all-time high in many
lines, and people in the trade are optimistic that it will continue upward
during 1965. This optimism was given concrete form at a recent furniture
market, where orders placed by furniture and department stores were heavy, in
anticipation of brisk business in the early part of 1965.
According to a midyear Census Bureau survey of consumers' buying inten­tions,
plans to purchase any of 7 major appliances during the latter part
of 1964 were somewhat more prevalent than a year earlier--17 percent planned
to buy them in 1964 as compared with 16 percent in 1963.
The table below shows the percentage of homes with specific appliances
on January 1, 1964. This illustrates in a convincing way the standards of
comfort and convenience that we take for granted. Even relatively new equip­ment,
such as food waste disposers, room air conditioners, and dishwashers
show up in 9 or more percent of wired homes.
Wired homes with specified electrical appliances, January 1, 1964
(Percent~es rounded to nearest whole number)
Major appliances, TV, radio Percent Small appliances Percent
Refrigerator.............. 98
Radio . . . . . . . . . • . . . . • . . . . . . 94
Television................ 93
Vacuum cleaner............ 80
Washing machine ....... .... 78
Range, free standing .. .... 30
Range, built in........... 10
Dryer (electric or gas) ... 22
Freezer . . • . • . . . . . . . • . • . . . . 22
Air conditioner (room) ..•. 15
Food waste disposer....... ll
Dishwasher . . . . . . . . . . . . . . . . 9
Dehumidifier . • . • . . . • . . . . . . 5
Iron, any ........•..
Iron, steam ......•..
Toaster ....•..... , ..
Mixer .............. .
Coffeemaker ...•.....
Frypan skillet ..... .
Sandwich-waffler ... .
Automatic blanket .. .
Hotplate .....•......
Can opener ...•......
Blender .....••......
97
71
80
68
66
45
35
30
22
15
10
Source: McGraw-Hill Publishing Co., Inc. Electrical Merchandising, Jan. 20,
1964 (p. 72).
-20-
Prices
Housefurnishinga is one of the few subgroups of the Consumer Price Index
that is currently below the 1957-59 price level. It is almost 2 percent
lower 1 whereas the combination of all goods and services bought by families
of moderate income iS about 8 percent above that level. (See chart.) Since
early 1960 the general trend for housefurnishings has been slowly downward,
in contrast with moat other index items. Retail prices for appliances have
been dropping steadily. Reductions during the past 5 years averaged almost
10 percent. In contrast, both furniture and bedding and textile items · (such
as sheets and blankets) are up about 2 percent over the 1957-59 average, and
floor coverings are up about 4 percent.
Consumer Price Index All Items and Housefurnishings
INDEX (1957-59=100)
I 10.------.-------.------~------.-------r-----~-------.------~
.,._-/ ....
r-"'
All Items...._,._~ -- 1
,.
105r-------~------~----~------_, ___.._., _-~ .. .,, --
,.. , -----~ --J
-·"--" __ ,,'
..,,,.. .. ,, J
1957 1958 1959 1960 1961
UNITED STATES DEPARTMENT OF LABOR
BUREAU OF LABOR STATISTICS
1962 1963 1964
During the last year, prices of appliances (except radios) declined by
amounts ranging from about 0. 5 percent for toasters and washing machines to
2 percent for vacuum cleaners. Wool floor coverings increased about 5 per­cent,
while nylon carpets decreased about 5 percent. Increases for furniture
were all less than 1 percent, while prices of sofa beds and mattresses
declined 1 to 1.5 percent.
For household appliances and home e~uipment, no major price drops are
foreseen. Expected decreases for some items may be offset to some extent by
increases for others, to yield a moderate decrease for appliances during
1965--probably less than the 1.5 percent decrease during 1964.
-21-
For wood and upholstered fUrniture~ prices are expected to be higher in
1965 by fairly moderate amounts. If retail prices are adjusted to reflect
higher materials and labor costs, the increase could average as high as 3 to
5 percent. With the current demand for higher quality merchandise, it is
quite likely that higher price tags will be due in part to better quality.
Expected price hikes for tickings may show up in moderately higher retail
prices for bedding. In the floor covering field~ the decline in wool consump­tion
is expected to continue into 1965, with a consequent heavier demand for
the manmade fibers. Little change in prices of floor coverings are expected~
except for vinyl asbestos floor tile. Several producers have already
announced higher prices fo.r this, effective January 1 (a partial restoration
of an earlier price cut).
Product Developments
Furniture.--The consumer will find a wide variety of choice in styles,
sizes 1 and fabrics. She will also find some innovations in '1mil tin"
features, such as concealed lighting, electrical outlets, and p.lastic shelf
surfacing.
One cu,rrent development is expected to result in some changes in the use
of woods. Wa.lnut has been the most popular wood for U.S. furniture, and con­sumption
is outstripping the new growth of walnut trees. To stretch the
supply, and to provide time for a planned program of conservation and rep.lant­ing
to be effective, the U.S. Department of Commerce revised the standard for
thickness of walnut veneer from 1/28 inch to 1/36 inch. Reaction among
furniture producers is mixed, but more firms appear to be accepting the
thinner veneers. Efforts are also being made to step up the development of
artificial finishes and to improve those now being used (such as embossed
plastics with depressions that resemble wood pores and engraved finishes that
invo.lve photographing the desired veneer and printing it on the base wood).
I
Soil and stain repellent finishes for upho.lstery textiles are useful to
the consumer, but claims of magical performance are likely to lead to dis­satisfaction.
One trade columnist warned that consumers should be told the
facts and not be given the impression that these finishes "wil.l put the coke
stain back in the bottle, the catsup back on the hamburger, and the mustard
back in the hot dog roll."
Floor coverings.--Tufted floor covering continues to dominate the soft
goods area, with those made of manmade fibers or b.lends of wool and manmade
fibers increasingly displacing pure wool carpets. This trend was acce.lerated
to some extent by the unsettled world wool market in 1964.
For hard surface floor coverings, the major development is the rapid rise
in the popularity of vinyl asbestos tile. Lower in price than vinyl tile and
more durable and easier to maintain than asphalt tile, vinyl asbestos is now
-22-
available in a large variety of styles and color ranges. Since it is easy to
install and available in several sizes, including 12-by-12 inch squares,
many do-it-yourself addicts have begun using it. The choice of colors,
textures, and special effects available has increased the use of hard surface
floor coverings in new home construction.
Appliances.--Built-in cooking ranges accounted for .4o percent of pro­ducers•
sales of all electric ranges in 1963. Reports indicate that the
peak of popularity may have been reached, since more emphasis is being placed
on free-standing ranges that look l:l.ke built-ins. Most of the 1965 lines
contain at least one model with a high oven and recessed cooking surface.
The placement of burners in an L-shaped design to eliminate reaching over
one burner to use another is featured in some lines • Slow baking is also
offered in the 1965 models, with the oven automatically changing from high
to low heats. Most range lines include models equipped with pullout liners
or superheat devices for easy cleaning. A new type of microwave device has
recently been announced that may mean electronic ovens will be able to com­pete
pricewise with regular ovens in the near future.
For refrigerators and refrigerator-freezers, a uniform method of measur­ing
size is in the offing. A new standard method was developed for the
industry under the sponsorship of the National Electrical Manufacturers
Association. Not all producers agreed on the standard, and size designations
for 1965 models may not all conform with it. When these differences of
opinion are ironed out, consumers will be able to compare the size of various
models and to judge the size needed better than at present.
Two developments of recent years are important in 1965 models. One is
the more extensive use of new types of insulation, chiefly urethane foam,
that allow for increased interior capacity without increasing exterior
dimensions. The other is the greater prevalence of no-frost types. There
have been reports that improvements have reduced the cost of operation of
no-frost types to some extent.
Bec~use of the large number of families owning separate freezers, some
promotional efforts are being made to sell "all" refrigerators. The "all"
refrigerators are only 5 percent freezer--just enough room for the ice trays
and a half gallon of ice cream. A new "breakfront" refrigerator has been
introduced this year by one company, with the refrigerator on top and a work
counter above a rollout freezer.
For laundry equipment the emphasis is on size. The 8-to-10 pound auto­matic
washer has d~minished in importance. One survey indicated that the
average load washed by the housewife is less than 8 pounds. Other surveys
disagree with this finding, so that the picture on size needs is not entirely
clear. The 1965 model lines include 1.4- and 15-pound washers. Some new
models are advertised as capable of handling any load from 2 to 14 or 15
pounds, with the machine automatically adjusting the water level and washing
time to the load. The problem of unbalanced loads has also received
-23-
attention. Some washers are said to balance automatically, while others
signal by light or buzzer when the load becomes unbalanced.
Vacuum cleaners are becoming more specialized as it becomes more common
for the housewife to have at least two. The canister type continues its
popularity, with recent changes tending to make it increasingly compact-­even
to the extent of internal caddies for the attachments. Newest type
cleaners are the light-weight uprights. They weigh between 5 and 7 pounds
and combine the brush action of the old, heavier upright with the suction
and convenience of the broom type.
Consumer complaints on labeling of horsepower and/or wattage of vacuum
cleaners have been receiving some attention. Consumers were unable to tell
whether one cleaner was more powerful than another because horsepower
ratings were not determined by a uniform method. The National Electrical
Manufacturers Association adopted a standard based on British thermal unit
ratings, and the Better Business Bureau recommended that the Vacuum Cleaner
Manufacturers Association adopt a similar standard.
Color television sales are expected to grow, with predictions for 1965
as much as 55 percent over 1964's record. Mass production economies have
allowed some substantial price cuts and the new lower voltage tubes soon to
be introduced are likely to lead to further cuts. Present predictions are
that in another 2 years all color sets will have s~uare tubes in 25-, 23-,
and 19-inch sizes instead of the current 21-inch round tube.
Another trend in TV is to miniaturization. The threat from Japanese
imports has been met by domestic manufacturers with 11-inch and 10-inch
lightweight sets selling in the $100 range. Smaller size sets are expected
to be available at popular prices in 1965, with the possibility that sets
with 4- or 5-inch screens may become as common as transistor radios.
In the small appliance field the development that is the subject of
much current research is portability. A recent pamphlet y mentioned almost
4oo different cordless appliances being produced, such as radios, clocks,
tape recorders, TVs, tooth brushes, and shavers. Continued research will
undoubtedly result in freeing additional e~uipment from the trailing cord.
These few observations do not begin to exhaust the recent developments
that have occurred in home e~uipment or that are now on the drawing board or
in testing stages. The technology of the space age with its computer scienc~
miniaturization through solid state devices that eliminate moving parts, and
practically indestructible materials will undoubtedly have a major e~fect on
the development of household goods during the coming years.
y Product Listing: New World of Portable Power, issued by Union Carbide
Corporation, March 2, 19
-24-
COSTS OF HIGHER EDUCATION
Paul K. Nance
Department o~ Health, Education, and Wel~are
What does it cost the individual to go to college? There are as many
answers as students, because their buying habits vary so greatly. However,
most of the charges assessed the students by an institution are known, and
we can make some comparisons. From data in the O~~ice of Education we have
~ormation on total costs ~or tuition and required ~ees, room, and board for
a typical ~1-time undergraduate student. ~ The median charges for these
items at public institutions in 1963-64 was $964 in universities, -$8o4 at
teachers colleges, $749 at liberal arts colleges, and $678 at junior colleges.
Corresponding median charges for private institutions were $2,o48 for uni­versities,
$1,493 ~or liberal arts colleges, $1,350 ~or teachers colleges,
and $l,o48 for junior colleges.
An O~~ice o~ Education estimate for 1962-63 showed mean total expendi­ture
per student--including not only tuition and required ~ees and room and
board, but books, supplies, clothing, travel, grooming, and other costs
incurred in attending an institution of higher education--was $1,480 ~or
public institutions and $2,240 ~or private institutions. According to one
source, at least a 5-percent increase per year over the next 8 or more years
is to be expected in costs of higher education to students. gj
Many American ~amilies find it difficult to plan in advance ~or the
~inancing o~ college education for their children. How do they handle this
expense? In some instances, the mother goes to work, if she is not already
regularly employed. The student may work full-time during the SUillliE r and
part-time while in college. Families may borrow on insurance policies or
convert other assets to cash. Many parents may privately dream that their
children will be smart enough to get a large scholarship, but in most
instances this is piJ?edreaming, ~or scholarships cover a very small percentage
o~ college costs.
Probably the most prevalent supplement to financing costs of higher edu­cation
is borrowing ~rom institutional or outside loan fund sources. The
National De~ense Education Student Loan Fund Program has provided at least
limited ~unds with liberal repayment and low interest rate schedules. The
student applies ~or an NDEA loan at the college or university he plans to
attend. I~ he quali~ies ~or a loan and is enrolled full-time, he may borrow
up to $1,000 per year, with interest at 3 percent per annum on the unpaid
balance (except that no interest shall accrue while the student is enrolled)
~ Louis A. D'Amico and W. Robert Bokelman, Higher Education Basic Student
Charges, 1963-64, now in process o~ publication. ?J Rex~ord G. Moon, Jr., ''More Students Are Studying Now, Paying Later,"
Saturday Review Vol. XLVI, No. 24, (June 15, 1963) pp.T4-75, 83.
-25-
and with repayment of principal and interest over a period of 10 years begin­ning
after the student completes or terminates his course of full-time study.
Many commercial concerns, including banks, are lending for as long as
72 months for 4 years of college. Funds are usually advanced to the borrower
at the beginning of each semester, and repaid in equal monthly installments
beginning on or near the date of first enrollment.
There are several ways to ''beat the averages" in college costs, such as
commuting from home to a nearby college; attending a college with little or
no tuition and fee charges; or attending a college with an alternate work and
study program. Recently the public community college or junior college idea
is getting increased support, as a part of the solution to the problem of pro­viding
higher education opportunities to all qualified young people.
The student who pays tuition, room and board, and other fees is not pay­ing
all that it costs to educate him. In most ·instances, the institution,
through other sources, finances the Jarger portion of what it costs to provide
the instructional facilities and staff. Public institutions are subsidized
by taxes, but in the case of private institutions there is some concern that
increased costs may price them out of the educational market. In 1949 a
little over 50 percent of college students attended private institutions,
in 1963 only about 37 percent.
In spite ,of this trend, our tradition of a dual system of education-­private
and public--is being upheld, and support is forthcoming. In a survey
by the Council for Financial Aid to Education, 1,036 colleges reported
voluntary support totaling almost $1 billion in 1962-63. This is three times
the amount reported for the year 1954-55· Obviously individuals, foundations,
and corporations are contributing, and the major portion of these contribu­tions
go to private colleges.
Commupities and States are expanding appropriations to their public
institutions. The Feder~ Government, with its long history of aid to educa­tion,
has recently enacted legislation that encompasses several programs for
higher education, in~luding the Facilities Act, the extension of the National
Defense Education Act, and the Health Professions Educational Assistance Act.
These Federal programs extend to both public and private higher education
institutions. Higher education has become a concern of national immediacy.
It seems certain that society will accelerate its emphasis on loans,
scholarships, work, and other programs to encourage more and more qualified
young people to attend college, until the time when education is truly within
the reach of all. The costs of attending college are increasing. The
programs of higher education are improving. The demands for a college
education are becoming more urgent. The returns are gratifying. We have
just begun to invest.
-26-
CONSUMER PRICES
Consumer Price Index f'or Urban Wage Earners and Clerical
Workers (including single workers) (New Series) (1957-59 = 100)
Group
All items
Food ............................... .
Food at home ..................... .
Food away f'rom home •............•.
Housing ............................ .
Shelter y ........................ .
Rent ........................... .
Homeownership g/ ............... .
Fuel and utilities 3/ ............•
Fuel oil and coal~ ............ .
Gas and electricity ............ .
Household f'urnishings and operation
Apparel and upkeep 2/ .............. .
Men 1 s and boys 1
•••••••••••••••••••
Women's and girls' .••.....•.......
Footwear ......................... .
Transportation ......•...............
Private .......................... .
Ptlblic ........................... .
Health and recreation ..•............
Medical care ..................•...
Persona]. care .................... .
Reading and recreation ........•..•
Other goods and services§/ ...•...•.
Dec.
1963
July August Sept.
1964 1964 1964
Oct.
1964
107.6 108.3 108.2 108.4 108.5
105.4 107.2 106.9 107.2 106.9
103.7 105.7 105.3 105.6 105.3
114.3 115.2 115.3 115.5 115.7
106.9 107.1 107.2 107.4 107.6
108.0 108.6 108.8 109.0 109.2
107.3 107.8 107.9 107.9 108.2
lo8.4 108.9 109.2 109.5 109.6
107.6 107.0 107.1 107.2 107.4
105.8 100.9 100.9 101.5 102.9
108.1 107.9 108.2 108.2 108.2
102.9 102.8 102.6 102.8 102.8
106.1 105.5 105.3 105.9 106.2
106.2 106.0 106.0 106.6 106.7
103.3 101.9 101.3 102.4 102.9
111.2 110.8 110.8 110.9 111.4
108.9 109.4 109.3 108.9 109.4
107.5 107.9 107.9 107.4 108.0
118.3 119.0 119.1 119.3 119.3
112.7 113.7 113.8 113.9 114.0
117.9 119.5 119.8 119.7 119.9
108.8 109.3 109.4 109.5 109.7
113.1 114.1 114.2 114.3 114.5
108.3 108.9 108.9 109.0 109.1
!( Also includes hotel and motel rates not shown separately.
gj Includes home purchase, mortgage interest, taxes, insurance, and
maintenance and repairs.
}/ Also includes telephone, water, and sewerage service not shown
separately.
!J} Called "Solid and petroleum fuels" prior to 1964.
~ Also includes inf'ants' wear, sewing materials, jewelry, and apparel
upkeep services not shown separately.
§/ Includes tobacco, alcoholic beverages, and f'uneral, legal, and
bank service charges.
Source: Bureau of' Labor Statistics, U.S. Department of' Labor.
Index of Prices Paid by Farmers £or Commodities
Used in Family Living (1957-59 = 100)
Item Nov. June July Aug. Sept.
1963 1964 1964 1964 1964
All commodities lo4 105 105 105 105
Food ....................... 107 106
Clothing ................... 110 110
Household operation ........ 108 108
Household £urnishings ...... 96 96
Building materials, house .. 101 101
Autos and auto supplies .... 101 103 101
Oct. Nov.
1964 1964
105 105
101 102
Source: u.s. Department of Agriculture, Statistical Reporting Service.
THE ESTIMATED COST OF 1 WEEK' S FOOD
Changes in Food Plans
The Consumer and Food Economics Research Division has revised slightly
its procedures for pricing the foods in the USDA food plans. This was
necessary because of changes made in £ood items priced by the Bureau of Labor
Statistics for the Consumer Price Index (New Series). Beginning with the
September cost estimates (page 28), the revised pricing procedure is being
used.
The use of the revised procedure and new series prices af£ects the
estimated cost of 1 week's food only slightly. For example, the June costs
given in the October 1964 issue of Family Economics Review (table 7, page 21)
based on the old series prices would have been about 1 percent lower if the
new series prices had been used in calculating them.
Erratum
In the October (1964) issue of Family Economics Review, page 15, Table 1,
the quantity of fats and oils for men 20 to 35 years was shown as 1 lb. 12 oz.,
but should be 0 lb. 12 oz. (line 17, column 10).
-28-
Cost of 1 Week's Food at Home ~ Estimated for Food Plans
at Three Cost Levels, September 1964, U.S.A. Average
Sex-age groups gj
FAMILIES
Family of two, 20-35 years d/ ......... .
Family of two, 55-75 years 'J/ ......... .
Family of four, preschool children~ ..
Family of four, school children 2/
INDIVIDUALS§/
Children, under 1 year .....••..........
1-3 years ........................... .
3-6 years .. ~ ........................ .
6-9 years ........................... .
Girls, 9-12 years ••.•..•••.•......•..•.
12-15 years ••..•.••.•..•••....•......
15-20 years ......................... .
Boys, 9-12 years .••.••...•••.••.••.•.••
12:..15 yea.xs •••.•.••..•.•...•.........
15-20 years ••..•.•....•......•.......
Women, 20-35 years •••••••••••...••..•.•
35-55 years ...................... ,.. .. .
55-75 years ........... ' ............. .
75 years and over .••.•.....•.•...•...
Pregn.a.n.t ............................ .
Nursil'lg ...........•............•.....
Men, 20-35 years and over ••..•.••.••.•.
35-55 years ......................... .
55-75 years · · · · · · · · · · · · · · · · · · · · · · · · · ·
75 years and oveJ:! •••••••••.•••...•.•.
Low-cost
plan
Dollars
14.70
12.30
21.60
24.80
3.00
3.80
4.40
5.30
6.00
6.60
6.90
6.10
7.10
8.30
6.30
6.10
5.20
4.70
7.50
8.60
7.10
6.60
6.00
5.6o
Moderate­cost
plan
Dollars
19.80
16.70
28.80
33.30
3.90
4.90
5.90
7.10
8.10
8.90
9.10
8.20
9.70
11.10
8.40
8.10
7.00
6.30
9.80
11.20
9.60
8.90
8.20
7.90
Liberal­plan
Dollars
23.00
19.00
33.20
38.80
4.20
5.60
6.70
8.40
9.00
10.30
10.30
9.50
11.10
12.70
9.60
9.20
8.00
7.30
11.00
12.40
11.30
.10.30
9.30
9.00
~ These estimates were computed from ~uantities in food plans published
in Family Economics Review, October 1964. The costs of the food plans were
first estimated by using the average price per pound of each food group paid
by nonfarm survey families at three selected income levels in 1955. These
prices were adjusted to current levels by use of Retail Food Prices by Cities
released periodically by the Bureau of Labor Statistics.
gj Age groups include the persons of the first age listed up to but not
including those of the second age listed. J/ Ten percent added for family size adjustment. For derivation of
factors for adjustment, see HERR No. 20, Appendix B.
~ Man and woman 20-35 years; children, 1-3 and 3-6 years.
5/ Man and woman 20-35 years; child, 6-9 and boy 9-12 years.
~ The costs given are for individuals in 4-person families. For individ­uals
in other size families, the following adjustments are suggested: 1-
person--add 20 percent; 2-person--add 10 percent; 3-person--add 5 percent;
5-person--subtract 5 percent; 6-or-more person--subtract 10 percent.