Evening star., 1938-07-22
BUSINESS FIGURES
ADVANCE IN JUNE.
Improvement Is Confined
Largely to Non-durab|e
Consumers Goods.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, July 22.-Business
activity in the United States in June
rose slightly for the first time since
August, 1887, according to the review
of domestic business conditions by H.
E. Hansen in the current midyear re-
view and forecast number of the
Annalist. The Annalist index of busi-
ness activity accordingly rose to TAI
preliminary from 1873 (revised) in
May and now is back to the April
level, when it also stood at TAI.
Improvement was largely confined
to the non-durable consumers goods
industries, the steel, iron and auto
mobile industries continuing to lag.
The movement of freight. on a sea-
sonally adjusted basis. increased, with
the important miscellaneous index
showing smaller gain than all other
loadings. Lumber production rose
moderately. while electric power output
was unchanged Zinc production
showed further substantial decrease.
If last months slight increase proves
to be the turning point, the depres-
sion will have lasted nine months,
during which time the combined index
declined 37.4 points. In only two pre-
vious depressions was the average
monthly rate of decline greater. In
the 1907 depression the index declined
40 points in eight months; in 1893
36-point loss occurred in seven
months. On both occasions. however,
the index remained unchanged at the
bottom for several months before
turning upward.
The most important single factor
in the rise of the combined index was
contrary to seasonal increase in
average daily cotton consumption.
There is reason to believe that the
character of this recovery is better
than that In the first quarter. Stocks
are lower than in March and buying
has been more aggressive. At the
same time prices have been raised.
The big buying movement began on
June 20 and during the following week
sales of print cloth were estimated
to have been equal to five or six
weeks current production. AS a result
mill stocks have reduced substan-
TALLY Whereas mill stocks in excess
OF orders had been equal to about IL
weeks of output. this excess was re-
duced to less than six weeks pro-
duction.
Rejecting in part an improvement
in the hosiery industry, silk consump-
ton per day showed fairly substan-
tial increase. although normally
decrease occurs. Rayon consumption
also showed a contrary to seasonal
gain and the adjusted index rose to
the highest level since last September.
Conditions in the wool goods market
have also improved, partly because of
the Governments action in absorbing
large amount of surplus clothing.
In the heavy industries We find
conditions much the same as in the
preceding month, except that senti-
ment has improved Steel buying con-
tinued to lag and average daily pro-
duction showed a greater than sea-
sonal decline. OF the leading con-
sumers, the construction industry ap-
pears to have been the only one to
increase commitments. Orders for
rails and railroad equipment, except
locomotives, were sharply below the
May level.
Automobile production turned down.
ward, but conditions are now i'm
proving Our seasonally adjusted
monthly index dropped to the lowest
level since November, 1888, but in the
second week of July the weekly index
rebounded sharply.