Norwich bulletin., 1922-04-01

Some industries seem to be active, while
others are in a depressed state. and bus
mess men have sometimes been unable to
determine the true state Of AFFAIRS. This
bank, accordingly !; has constructed an in
dex of manufacturing activity in New
England, which represents for each month
the st:m total OF the rates Of operating
activity of the major industries. Gem
pairing index numbers from month to
month, gives the general trend Of the rate
Of production IN the factories OF this dis
'tEict.
The rate of manufacturing activity. In
New England reached its highest point in
January. 1920, and declined practically
throughout that year. While during 1871
1t was again on an almost constant up
grade. 1t is significant that the decline
started in New England several months
before it did in most parts of the country.
and conversely that it started upward in
this district several months in advance.
That is chiefly because the two. Largest
Industries in New England textiles, ana
shoes and leather products, felt the on
coming depression before the majority
Of industries. and on the other hand, IN
creased activity before the others
Discretion must be used in Interpreting
this index Of misunderstanding activity. Its
primary purpose Is to Indicate the. trend
from month to month, rather than to
show that production during February.
for Instance, was equal to that in October,
1921. Furthermore. It should not be as
summed that it is perfect, although it Is
believed to be as accurate as the Tnahu-
featuring statistics now available will per-
nit. 1t is practical yet simple yardstIck
for measuring approximately New Eng
land manufacturing conditions
For those Interested In the Idethods
= 10 iafr 1aa al n
that 1t was first necessary to ascertain
the rate. Of manufacturing, kcivity in the
leading New England industries This
was determined either ffoni actual pro
duction statistics or from fnaehlnsry &C.
tivity, raw material consumption ana en-
| ploy1neft data. Production and eonsut1p-
ton statistics were calculated on q work
ing day basis, because 1t is, of course.
| Obvious that the total output Of an indus
| try would he considerably less III FsArti-
airy than In january due to tfe fe#sr NUN
ber Of @efkins days in February, and it
| was desired to determine merely the rate
| Of production. Furthermore. no attempt
| has been made to eliminate those changes
| In the rate of production which are due
solely to the different seasons Of the year
because it is felt that the seasonal changes
| are very important, and must be reekoned
with. Neither has it been deemed reces-
| sal " sbliOM 1Of HOEiIidi growth Oh the
manufacturing output of the district
This naturally would be comparatively
small from year to year and the purpose
of this particularly index is merely tc
show the general trend from month tc
month. After the manufacturing rate:
for each OF the several industries had beer
calculated, it was necessary to cembin;
them into one single index number. Thi,
was not done by simply averaging ali o
the rates, but by what ID called tbs
poftanes Vas assi gS t 10 saos ,n5I ~
than to others. For instahca the textil,
Industry is the largest in New England
and therefore has been given more i'm
pertahee-or *eight-than any other
The Weightings assigned aresbased on thu
relative value added during ,fiantfac
tutr& in each Industry, as Shown BY tht
/ 1914 census.