Evening star., 1937-11-07
SHOWS
FURTHER DECLINE
|NFOUR DIVISIONS
Steel and Motor Output,
Power and CarIoadings
Recede Again.
WEEKS RETAIL TRADE
SHOWS MIXED TREND
Wholesale Markets Remain Under
influence of Generally eau.
tious Buying Demand.
BY THOMAS Z. FLANAGAN,
Associated Press Financial Writer.

Aono OuJ Ah6 OSMuius
BY THOMAS e. FLANAGAN,
Associated Press Financial Writer
The Nations business continued to
decline last week.
The four major divisions of indus
try-steel output, motor production,
electric power and railroad carloadings
again fell back little
Meanwhile, cuts in production we're
recorded by makers of shoes, textiles,
tires and other consumers goods as
orders dwindled and distributors
planned to keep inventories down to
workable levels.
THE closing days of October and
the first few days of November brought
mixed trend in retail trade for the
first time in several weeks" the De-
partment of Commerce reported in its
weekly survey of 81 cities.
I'm some Is important cities business
slumped compared with the same time
last year, while an equal number re-
ported a good week and substantial
increases over the comparable 1886
period.
Cautious Buying Demand.
wholesale markets were under the
influence of the generally cautious
buying demand which has been evi-
dent recently. The general situation
was we'll epitomized in the report from
New York which said, 1T must be
borne in mind that comparisons are
now directed against period of last
year when business was abnormally
high due to the double fear of rapidly
rising prices and shortage of goods"
The Associated Press index of in
dustrial activity dropped to 903 from
92.6 the previous week. In the like
1885 week it stood at 962.
The steel industry operating rate
receded to 1875 per cent of capacity
from SCI the preceding week. accord
ing to the estimate of the American
Iron and Steel Institute. A month ago
1t was 66.1, year ago TAT.
The downturn, experts said, was .
further adjustment to the small
volume of new business. Although
it was felt the speed of the down.
swing in new buying has been
checked, the outlook for brisk up
turn has been dimmed by the hand
to-mouth buying of the automobile
industry.
Withhold Judgment.
Little help was to be had from
either the railroad or building con-
struction industries. leading takers of
heavy steels. Whether the motor
division would soon step into the
breach with orders. in the last
analysis, depends on the reception
given to new automobile models by
the public, well-informed steel men
said.
On the latter question motor OBJ
servers withheld Judgment. 1t was
noted that the industry turned out
fewer cars-89,770, compared with
9o,155 the week previous and 84.780
in the like week year ago, Wards
reported.
The problem of retail consumption
of new cars, it was argued, hung
on the ability of the public to buy
motors at the higher prices, in spite
Of lower purchasing power in some
regions
That the automobile industry itself
was keenly aware of the problem was
seen in reports studies of price re-
visions were under way with a view
to overcoming sales resistance to
higher prices. While no general
price cuts we're said to be in sight.
it was believed reductions might be
posted by some makers in order to
jockey into more suitable competitive
position
Power Output Drops.
Output of electric power In the
week ended October 80 slumped more
than seasonally, power analysts said.
The total, reported by the Edison
Electric Institute, was 2,254, 4,947,000
kilowatt hours, a modest cut from
the preceding week, but Al per cent
above the like week last year.
Further reduction in the rate of
gain over 1886 continued to arrest at
tention. The slackening in the de-
mand for power was again most pro-
nounced in the leading industrial
areas. For instance, consumption of
electricity in New England was 2 per
cent under the 1886 week, whereas
in the week ended October % it was
up or of l per cent over last year.
Sizable downswings in the margin of
gain were also recorded in the central
industrial and Middle Atlantic regions.
to confirm indications of slower pace
of business. particularly in heavy In
dustrial activity. The Association of
American Railroads reported loadings
in the week ended October 80 at Ill.,
655, down 0.2 of / per cent from the
from the corresponding week of 1886.
Making for contraction in the to-
tai amount of freight hauled were
moderate declines in shipments of ore
and coal. On the other hand, the
small increase In miscellaneous freight
indicated many products were moving
through channels of trade and indus
Try faster tnan at tnlS Time last year.
Moderate Turnover.
The stock market declined on mod
crate turnover after the preceding
weeks sharp upswing. Wall Street
men said third quarter reports coming
to hand showed clearly how higher
operating costs have eaten into profits.
This, together with general business
recessions and uncertainties on farm
and wages and hours legislation had
deprived the market Of support.
Bonds were down under the weight
Of the same factors affecting shares,
financial men said. Rail loans were
buffeted. United States Government
obligations were in demand most Of
(see INDUSTRY, Page ESD