Evening star., 1938-10-02
HARDWARE SALES
UP MODERATELY
Signs of Revival Appear
After Extremely Dull
Seven Months.
Special Dispatch to The Star,

SpeClal DlSpdtcn 10 Inc star.
NEW YORK, Oct Hard hit by
the contraction in building activity, in
automobile output, and in industry.
orders for factory supplies, the hard
ware trade showed severe decreases in
production and sales during the first
seven months of 1888, according to q
survey by Dun & Bradstreet, Inc.
Compared with the good RECORD
made in the corresponding period oi
the previous year. output was of IS
to so per cent, wholesale volume % te
30 per cent, and retail sales Is per cent
Not all lines suffered alike; makers OF
farm and garden tools, sporting goods
and outing supplies reported volume
running close to last years in many
instances. while orders for mine and
mill equipment were down as much a,
60 per cent.
Among the first to show an i'm
proved sales trend were building
equipment lines. During the summer
months q steady increase in the de-
mand for paints. wallpaper, Venetian
blinds, builders tools, furnaces, radi-
ators and sinks accompanied the ex-
panSion in residential construction
Brighter expectations for the 1893
automobile crop brought out heavier
orders for machine tools and dies
Farm equipment continued one of the
most active divisions, but, with gross
farm income for the year estimated
down II per cent from the 1887 total
dealers proceeded cautiously in placing
advance commitments.
Inventory holdings in the trade
showed relatively little change be-
tween the first of the year and the
end Of June. Manufacturers stocks
Of hardware were reduced per cent
wholesalers holdings / per cent. An
increase of l per cent was reported
however, by retailers of hardware, and
one Of per cent by retailers of both
hardware and farm implements.
With new orders from distributors
sharply reduced in all divisions, hard
ware manufacturers were forced to
make drastic reductions in operating
schedules during the first seven
months of 1898. Output averaged IS
to IS per cent lower than in the cor
responding 1887 period, when the in
dustry was operating at full capacity
to take care of a heavy backlog OF
orders. BY early 1898, backlogs had
been exhausted, and incoming busi-
ness consisted almost entirely of fill-in
orders designed to cover current needs
only.
"A decrease in the number of work.
ers accompanied the curtailment in
output. The index of employment in
hardware plants, according to the
United States Department Of Labor
declined steadily during the seven
months, dropping from 69.9 in jan
uary to 531 in July. The July figure
was 43 per cent below the 80.2 level OF
July, 1887. Demand for most hard
ware products held up somewhat bet
ter than production, and during the
first half-year the dollar value of in
ventories in the hands of hardware
manufacturers was reduced by Z per
cent.
Orders for machine tools touched q
three-year low in May. In each sue
ceeding month the index computed by
the Machine Tool Builders Association
registered an increase. From July to
August, the gain was 81 points, or IS
per cent, raising the index to the
highest point since December, 1897.
Foreign buying, which was the main
stay of the industry in the first part Of
the year, accounting for more than
half Of total sales, played an important
role In the upturn."