Evening star., 1948-11-29
u. S. Business Reported Good
DESPITE Siqns of Weakness

the. Southwest. Prices were easing
in the South but still edging higher
in the Midwest.
In New England the volume Of
trade showed no serious signs o1
weakening, the Federal Reserve
Bank of Boston said. Demand holds
high for women's ready-to-Wear ap-
parel, electrical appliances ano
other household furnishings. Mems
wear moved more slowly.
In the Middle Atlantic States
some lay-offs were reported, mostly
among smaller companies. Business
failures were up, with many OF the
casualties marginal concerns which
sprang up during the war. Retail
sales were off, mostly In soft goods
lines. Actual dollar sales were
down somewhat, while unit sales
eased considerably.
The situation in New York'S huge
garment trade was somewhat con-
fused. Reports of spreading unem-
ployment were vigorously denied ir
several quarters, such as the
women's coat and suit industry
which has postponed the lay-of1s
customary in the middle OF Novem-
Der.
Employment Gains
In the Southeast, employment
showed increases over last year ir
all categories except transportation
industries like shipbuilding.
A general expansion Of business
was underway across the Southeast
September construction contracts
topped those of the previous Sep
tember by 10 per cent. Home build.
ing declined in the Atlanta area last
month, but 7,785 homes were started
during the first 10 months Of this
year as against 7,095 during the
whole of 1947.
However, some retail merchant.
worried over the sales trend. which
was downward during the first two
weeks of November. Food costs II
1e Southeastern cities last month
declined 81 to 18 per cent.
Agricultural cash receipts for the
first nine months of 1948 in, Geor-
gia, Florida, Alabama, Mississippi
tennessee and the Carolinas totaleo
over s203l 100000. or s125 600, ,Oot
higher than for the same period last
year.
Midwest in Better Shape.
The Midwest was in q somewhat
better position than the National
average because of heavy produc-
ton OF commodities and durable
goods in strongest demand.
Midwest employment was stronger
than the Northeast and some other
areas, and business expansion was
still evident although not pro-
nounced. Interpretations were little
higher than the National average
failures a little lower.
Prices in the Midwest were some
what higher than for the Nation
as a whole, and were still inchine
upward.
In the Southwest, employment
was still rising slowly. The labor
supply in the Dallas region had
been Tightening progressively and
was expected to continue scarce for
several months, largely because OF
the establishment of new aircraft
plant. Department stores were re-
ported recruiting housewives to help
handle the Christmas rush.
Retail Sales Drop.
However, retail sales reported SO
far were about S per cent below last
month, and the ratio of credit sales
continued to increase steadily.
Southwestern prices appeared tc
be leveling of for all goods, and
showed slight declines for some hard
goods, particularly radios and refrig-
orators, as well as soft lines.
On the Pacific Coast, employment
appeared to be holding the same
level it has maintained with little
or no change for two years.