Evening star., 1940-10-13
Index Of Industrial
Activity Reported
AtNew Record
STANDARD Statistics Co.
Places Average at
113 for September
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, Oct. l2.-The Stand
ard Statistics index Of industrial
production, which is based on a
comprehensive compilation of over
so individual statistical series, re-
corded an all-time high in Septem-
ber. on the basis of preliminary
figures. The September index is
placed at 1880, Q926 equals 1907.
which represents 15-per cent gain
over September, 1899, and exceeds
the previous peak established in
June. 1929.
Stimulated by the anticipated
demand for ornaments. the pro-
duction of capital goods continued
to score a marked increase over
previous months and is estimated at
4 level 20 per cent higher than a
year ago. The impetus of war busi-
ness is also being felt in consumers
goods lines.
Steel Operations High.
Steel production amounted to S.
695,232 net tons in September and
was slightly below the August total
of 6033,037 net tons. Despite this
decline. attributed to the smaller
number of working days in Sep
tember, steel activity averaged 90.8
per cent of capacity, against 897
per cent in the preceding month,
and 1928 per cent in September 1899.
Pig iron production on an average
daily basis, approximated $4,000
net tons, compared with 1876, 100 tons
In August and 107, 500 tons in Sep
tember, 1899. Large order backlogs
assure continuing high steel opera
tions.
Automobile production last month
approximated 285,000 units. gain
Of nearly 100 900 over the like month
last year. The early introduction of
194l models was primarily respon-
sible for the big Jump as compared
with year ago, but with national
buying power expanding and dealers
still not adequately stocked with
cars, total production during the
current quarter is expected to
reach a new all-time record for the
period.
The rapid progress in placing Or
ders for cantonments and other de-
tense construction partially offset
the decline in contracts awarded for
non-residential and public buildings
in September. While that period is
normally seasonally lower than Au-
gust, total contracts are estimated
at levels almost 20 per cent above
q year ago. Total building contracts
this year are expected to be the
largest since 1890.
Metal Output Up Slightly.
In spite of the importance of non-
ferrous metals in the armament pro-
gram, domestic production was
somewhat restricted in September
by the large quantity of foreign ma
terial now being smelted or refined
In this country. These foreign sup
plies do not enter into reported sta
tistics but they nevertheless utilize
q significant proportion OF domestic
processing capacities.
Another reason for the cautious
expansion of operations is the
trades belief that much of the recent
heavy buying represents covering OF
requirements for Government con-
tracts and that once these are
placed, contraction of demand
may be experienced. AS result, al
though copper sales reached the
record-breaking total of 255 332 tons
in September, there was practically
no change in the output. Zinc and
lead production advanced over Au-
gust. while tin deliveries were slight
ly down.
Record High Probable.
Although Government orders for
Ill kinds of clothing and accessories
have been heavy, only the wooden
industry showed any substantial gain
over August. With Government or
ders now being supplemented by ac-
tive trade buying. however, a grad
ually rising trend of textile opera
tions is in prospect in coming
months.
In view of the rapid acceleration
Of Government spending for defense
purposes, industrial activity will be
maintained at high levels for some
time ahead. Average production
for the current quarter promises
to reach the highest levels on record
for any three-month period.
The distribution of goods at rs
tail also should make a highly sat.
isfactory showing. National pur.
chasing power is currently close to
its previous record high, and fur
ther increases are probable as the
armament program gathers mo-
mentum. Retail trade during the
coming holiday season should. there
fore, be the best in years-on phys
ical volume basis, it probably will