Message to the Congress Transmitting the Cost of Living Council's Quarterly Report on the Economic Stabilization Program.

To the Congress of the United States:

In accordance with Section 216 of the Economic Stabilization Act Amendments of 1971, I am transmitting with this the Cost of Living Council's third quarterly report on the Economic Stabilization Program covering the period April I through June 30, 1972.

The report reflects the significant progress which the country is continuing to make toward the joint goals of reducing the rate of inflation and restoring vigorous health to the economy:

1. In the battle against inflation, the annual rate of increase in consumer prices has been cut to 2.9 percent since I announced the New Economic Policy on August 15, 1971. During the same period, real spendable weekly earnings have increased at an annual rate of 3.8 percent.

2. The recovery which the economy is experiencing is evidenced by nearly all of the key economic indicators. Last quarter's real GNP grew at an annual rate of 9.4 percent, the greatest increase in seven years. Productivity increased at a 6 percent annual rate in the second quarter of 1972, with an accompanying decline in unit labor costs. Employment has increased by 2.6 million workers since the program began, and the rate of unemployment has declined moderately.

While this encouraging progress has resulted from the interaction of many economic factors, the temporary wage and price controls of the Economic Stabilization Program have played an important role in maintaining price stability during a period of rapid expansion. The disciplines of the controls program, together with responsible fiscal and monetary policies and the continued support and cooperation of the private sector, can enable us to move into a new era of unprecedented prosperity for all Americans.

RICHARD NIXON

THE WHITE HOUSE,

September 13, 1972.