The Daily Alaska empire., 1938-08-03
PRODUCTION INCREASING
 PAC. COAST
Conditions Are Improving, Upsurge Is Noted in
 Many Lines

SAN FRANCISCO, Cal, Aug. B. Although output of few major Twelfth District industries was lower in June than in May, most industries appear to have main tained or increased production. New residential building undertaken de- clined by less than the usual sea- sonal amount, and data covering the first three weeks of July indicate substantial increase in that month Industrial employment and payrolls advanced slightly in June, on a seasonally adjusted basis, and retail sales were unchanged from the preceding month.
 Moderate Upturn
 The major industries in which production was reduced were pe- troleum and copper, while fruit and fish canning increased less than would ordinarily be expected in June and early July. Output of lumber increased further in June, this banks seasonally adjusted index advancing points to 62 percent of the 1923-1925 average. A moderate upturn in orders for lumber oc cured during June and July, follow ing an extended period of unusual ly light buying. Meat packing ana activity at motion picture studios also advanced and operations at air craft factories continued at the high levels of other recent months. Steel production and fabrication were the same as in May, although orders are reported to have increased slightly. No significant change in activity at tire factories and auto- mobile assembly plants is revealed by available informa tior..
 Building Increases
 The upward surge in residential building continued during June and July. The seasonally adjusted in- deX of the value of residential building permits advanced in June to 42 percent of the 1923-1924 aver age, compared with 21 percent in December and 35 percent in June 1897. Residential construction GUS tomarily declines in July, but data covering the first three weeks of the month point to a material ex- pansion this year. The final sea- sonally adjusted index for July will probably be close to 50 percent of the 1923-1925 average, or ap- proximately as high as the monthly average for 1929.
 In Department Stores
 Value of sales of department stores in June was unchanged from the level of the preceding four months. the seasonally adjusted in- dex remaining at 90 percent of the 1S23-1925 average. Inventories of department stores declined by the amount customary in June, and at the end of the month were II per- cent lower than a year earlier. New automobile registrations increased
  by the full seasonal amount.
 Commodities Advance
 Prices of commodities tended to advance in late June and during the first three weeks of July, sharp increases occurring in quotations for a number of basic raw materials. Accompanying these price advances, fabricators and distributors in many lines became more active buyers than at any time since early last fall. Orders generally have been limited to immediate needs during the past winter and spring.
 Loans of district city banks for commercial and industrial pur- poses increased slightly from mid- June to mid-July, following consid- erable decline during the first five months of the year. Some part of the decline in earlier months rep resented repayment of loans with | funds received from liquidation of excess inventories that had been | held by producers and distributors