Vol. 3, No. 1, 1977

Review and Outlook: 1976-77 Business: Broad Improvement Continues
Last Updated: 01/27/77

Despite widespread dissatisfaction with the performance of the U.S. economy in 1976, impressive gains were recorded in employment, output, personal income and corporate profits. Unemployment remained at distressingly high levels, partly because of an abnormally large rise in the labor force. The rate of inflation slowed markedly. Interest rates moved lower during the year, contrary to expectations. Credit was more available in all markets, and liquidity improved in all sectors. The experience of the Seventh Federal Reserve District states — Illinois, Indiana, Iowa, Michigan and Wisconsin — was broadly similar to that of the nation..