Evening star., 1937-09-12
TRENDS OBSCURED
by HOLIDAY WEEK,
STORE SALES RISE
Steel and Auto Rates Lag.
Loadings and Power
Output Climb.
CAUTION is ENGENDERED
BY RETAIL CONDITIONS
Consolidation of Gains and Diges-
ton of inventories May Fea-
ture Period Ahead.
BY THOMAS K. FLANAGAN,
Associated Press Financial Writer.

BY THOMAS Il. FLANAGAN,
Associated Press Financial Writer.
The Nations trade and industry
ran along at an even pace last week,
although trends were obscured to some
extent by Labor day holiday interrupt
tionS.
Slower operations in the steel and
motor industries contrasted with gains
in carloadings and electric power.
The Associated Press index of in
dustrial activity rose to 104,6 from 104
the previous week and 936 in the like
week of 1886.
Retail trade took on brighter
hue following Labor day and gave in
dications of improvement with the
advancement of the Fall season." the
Department of Commerce said In its
survey of 81 cities.
While the upward trend Immediately
following the holiday was not pro-
nounced, it was of sufficient proper
tions to impart substantial encourage
ment to trade observers. Wholesale
markets showed signs of improvement,
but had not as yet begun to reflect
adequately the retail picture.
Steel Rate May Be Cut.
Owing to the holiday, steel oper-
ations dropped to 71.6 per cent of
capacity from 84.1 the preceding week,
the American Iron g. Steel Institute
estimated In the corresponding
period last year the rate was 68.2.
Although steel trade circles said they
looked for gradually swifter flow of
new business this month, there were
doubts whether demand would prove
heavy enough to fend off a slower rate
of production during the next several
weeks.
Some stressed that buying from the
motor industry, though somewhat
more aggressive, had failed to come up
to expectations.
Declining backlogs Of orders at some
mills was said to have provided q
basis for opinion In various circles that
recent high-speed operations were
unwarranted.
Scrap steel, normally regarded as q
barometer of the industry, was marked
down 81 ton at Pittsburgh.
Automobile output was 59,017 units
last week, compared with $4,000 the
week before and 27,619 in the like
period year ago, Wards reported.
Experts in the industry termed the
pace of production better than sea-
sonal. In the opinion of some COM
mentators this was the aftermath of
recent pronouncements higher prices
for new models lie ahead.
Auto Prices to Jump.
Some trade circles expressed the
belief that October motor prices NAV
run from eight to ten per cent higher
than at the start of the last years
selling season.
Output of electric power rose mod
erately to a height never before
reached in the history of the indus
try. In the week ended September
4, the total was 1890, ,982 900 kilowatt
hours, the Edison Electric Institute
reported. This was a gain of 8.6 per
cent over the like week last year. In
the week ended August %, the gain
over year ago was eight per cent.
Providing some encouragement to
business observers was widening of
the gain in the central industrial
district. This, experts said, bore wit
ness to the well-sustained activity in
general manufacturing.
In the week ended September 4
freight carloadings advanced "a per
cent to 804,633, the Association of
American Railroads reported. This
was up So per cent from the like
1885 week. The upswing was some
what better than seasonal. traffic
analysts said.
Trade Gains Normal
One phase of business activity
which gave observers food for thought
was the tone of reports on retail trade.
Department store sales in August
scored less than the seasonal rise, the
Federal Reserve System reported, not
ing that this had depressed its index
three points to 81.
Meanwhile sales reports of chain
stores for August showed but a linn
lied gain over the like month of 1895
Some compilations showed the rise
the smallest for any month of the
year.
Some analysts stressed that, allow
ing for higher prices of numerous re-
tail products. gains in dollar sales in
dicated a rather unimpressive turn
over of goods in terms of units.
Business circles once more stressed
the obscurities surrounding Fall trends
and reaftirmed the belief the stretch
ahead may be one of consolidating
gains and digestion of inventories.
Closing down of some cotton mills
IN New England and throttling of the
production rate both in that region
and the South was explained by tex
tile men in terms of a slackened de-
mand for cotton goods. 1t was re-
called similar steps we're taken recently
by manufacturers in other lines.
Business circles, scanning traditional
weather vanes for hints of Fall busi-
ness conditions, noted with satisfaction
continued gains in demand for COM
loans.
Shares on the New York Stock Ex-
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