Evening star., 1939-05-23
Industrial ACTIVITY
Rises Shade Above
Years Low Point
Wall Street Observers
Wonder Whether Drop
Hos Been Checked
BY the Associated Press.


NEW YORK, May 23.-Industrial
activity. after six weeks downward
coast, now hovers a shade above
the low point for the year and Wall
Street observers are wondering how
completely the business ebb drift
has been checked.
Talk of late May, June or early
July business bottom for 1899, with
improvement catching hold shortly
thereafter, has been heard for some
time in financial circles. Due to the
troubled European political situa-
ton, spring industrial buying of raw
materials was cautious and produc-
ton of manufactured goods was
carefully gauged to demand. The
slow trend of business UP to now.
some observers argued, was setting
the stage for an early resumption
of fall activity if the threats of
war abroad ouieted down. And now
the European picture appears much
brighter.
Index Turns Upward.
The Associated Press index of in
dustrial activity last week turned
upward after six consecutive de-
clines that carried the measure to
the low for the year and, while one
swallow does not make a summer,
the upturn is at least one straw in
the wind indicating a strengthened
trade tone.
Buying in retail stores is held one
of the brighter skylights in the i'm
mediate outlook. May sales are
holding up well and for the month
are likely to show a gain of around
8 per cent over year ago.
Other factors also hint a better
trade tone. Volume of contracts for
new residential building, while COM
ing in at slower rate, are taper
ing at less than the usual pace
noted at this time of year. Auto
mobile production, after a slow
down, has moved ahead contra
seasonally. Cotton goods manufac-
turing has been rising when shad-
ing of operations seasonally would
be expected. Electric power pro-
duction, hampered by recent STOP
page of coal production at Appa-
lachian mines, is recovering. Rail-
way freight loadings, down 17,4OO
cars in the latest period from the
preceding week, showed the decline
principally because of a 17500-car
week-to-week coal loadings drop
precipitated by the mine stoppage.
With mine labor contracts pretty
much Strengthened out coal produc-
ton Is now rising.
Steel Mills to Be Busy.
Moreover, heavy steel orders
placed at bargain prices" at mid
month, particularly of automotive
steels, are expected to give a flip
to summer mill activity. Steel op-
erations, after seven consecutive de-
clines, advanced 81 points this week
to 485 per cent of capacity.
Apparel has jumped into the spot
light in department store sales, Civ
ing pep to the general retail trade
picture. Buying of clothing had
been retarded by the long, cold
spring in many localities. Items
moving fast over the counters these
days include mems spring and sum-
mer suits, slacks, sportswear, hats
and women's warm weather dresses,
shoes and accessories. Mote: The
shoe trade reports the fairs at New
York and San Francisco are boost
ing country wide sales of women's
f1at-heeled walking shoes
Automobile, aviation, building
chemicals. food, household supply,
mail order, retail trade, rubber and
textile enterprises are among lines
favored by experts to share in any
upturn in general business activity
Here is how common shares of rep
resentative companies in these
groups stand marketwise. compared
with highs and lows since the be-
ginning of 1897: