Evening star., 1939-06-11
Steel and Motors
Lead in Modest
Business Rally
Analysts Agree Thot
Outlook for Future
Is Somewhat Hozy
By the Associated Press.
BY THOMAS F.. FLANAGAN.

-'NNOS'"NNA .
Retail trade and steel and motor
production were ringleaders in q
modest business rally this week.
Contrasting with the lift in the
steel and motor divisions, however,
were declines in freight car loadings
and electric power output
AS the week came to a close it was
apparent that business on the whole
was well ahead of last year, but
most analysts agreed that the out
look from this point on was some
what hazy.
AS for the gains in retail trade,
the Commerce Department said
nearly all areas showed large gains"
over a year ago. The Associated
Press index of industrial activity,
which rose from 1873 to 84.5 this
week, compared with 66.7 In the like
1888 period.
Outlook Held Uncertain.
Business analysts have for some
time stressed that much of the drive
OF recent business improvement has
come from the motors division. Al.
though motor production increased
this week, Detroit dispatches said
the outlook was regarded as uncer-
tain
What strength the motor industry
has shown in the last several weeks
has come largely from brisk retail
sales OF new cars. Traditionallv an
important yardstick of neW-car dis
tribution is the report on new-car
sales for Wayne County, Mich. For
many recent weeks this report has
SHOWN substantial upturns over both
the previous week and the corre-
spending week of last year. This
week, however, the total fell to laos
from 2,l63 the preceding week and
| compared with 496 in the like week
a year ago.
Although business experts took
! some cheer from the way in which
steel production went ahead with
motor output, business generally was
described by Iron Age as "unim-
pressive.' The review said railroad
demand for steel had shown signs
OF reviving. However, inquiry in
railroad circles indicated that. so
far as could be determined. buying
was confined to a few systems in
robust financial health.
Equipment Requirements.
Such demand, it was also stated
has been mainly for the account of
railroads which have been forced to
make requirements of worn-out
rails and other equipment.
Some steel trade circles said the
latest upsWlng in production was
somewhat misleading The opinion
was expressed that various factors
may whittle down steel consumption
during the next few weeks. It was
said motor makers will need only
small tonnages for a number of
weeks. Farm equipment plants have
indicated they will close down tenn
porarily. Requirements of miscella-
neous manufacturers normally fade
at this season of year.
! In the construction field. gains in
home building captured most atten-
tlon. Government surveys showed
that residential contracts in Texas
| in May ran far ahead of any pre-
viouS month in the last two years,
while building permits in Knoxville
jumped to record peak. Cities in
Florida, Missouri. Iowa and Tennes-
see also reported substantial build
ing activity.
Security Offerings Squirt.
Public offerings of new securities
spurted during the week, but finan-
cial experts again contended that
financing lacked the much-needed
stimulus of enterprise" capital. Sc
curities Commission experts. COM
menting of the recent rise in new
registrations. said it was still diff
cult to predict if and when there
might be revival in the new cap
ital markets.
The Commerce Department, in its
survey of business in 36 cities. said
Outstanding (retail trade in
creases were reported from WASH
ington, New York and other cities
along the Atlantic Seaboard. Chi
cago retail trade recorded an ap-
pllcable upturn. but trade in San
Francisco and Los Angeles failed to
show the rise experienced in other
localities
Statistics on Week.
Industrial statistics issued during
the week included:
The American Iron and Steel In
stltute estimated production up to
542 per cent of capacity. compared
with 522 the week previous. Al a
month ago and 262 in the like 1888
week.
Wards automotive reports said
production of cars jumped to IS 265
units, from 80 445 the preceding week
and compared with 42,l75 in the
like week last year The rise, it was
stated, reflected settlement of the
Briggs Manufacturing Co. strike.
The Association of American Rail-
roads reported carloadings in the
week ended June totaled SGT 1872.
This was drop of 95 per cent from
the previous week and an increase
of l3 per cent over the like week last
year
The Edison Electric Institute re-
ported that electricity output in the
week ended June totaled 2,1l3.-
887 900 kilowatt hours, down Al per
cent from the previous week, but
l2.5 per cent above the correspond
ing period year ago