Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-06-05
Trade and Industry
Continue 10 Coast
DownhiII in Week
By 6. A. Phillips
Assoeiofsd Press Finoneiol Writer

NEW xokth, june 4.-bUSlUeSS
activity continued to coast down.
hill this week.
Oh to q slow start because of
the Memorial Day holiday, indus
trial production was under the
previous non-holiday week and in
most cases was short of the 1913
weeks output.
Prices, new orders, retail trade,
inventory positions, employment.
income payments and capital ex-
pansion programs all compared
less favorably with the excep-
tionally good times enjoyed by
business at this time last year.
However, II you 60 back to any
ordinary year before the national
economy was inflated TO an un-
precedented degree by the war the
current picture Is excellent.
While day-to-day operations
disappoint those who expect more
Of a seasonal pickup, there were
straws In the economic winds this
week which suggested q turn for
the better, at least for the present.
Construction REEVES.
Spring construction activity set
faster pace all over the Nation.
Both home construction and
heavier types of work such as hos
pitfalls. schools, public buildings
and the like are participating in
the sudden upturn that exceeds
anything the most optimistic
builder had In mind earlier this
year. Prices have come down a
little and every one is encouraged
to believe that this tremendously
important segment of the national
economy will come through with
its share of activity after all.
The authoritative Engineering
News-Record said the total con-
struction backlog in the first
quarter showed a net gain Of
$1,000 900, 900, or five times the
increase in the slow final quarter
of 1913. This indicated to the
trade journal that the waiting
period" for construction programs
was ending. The national total
of construction backlogs at the
end of April stood Mt $44, SOC. 000.-
900. A sharp gain in proposed
industrial construction was an
important part of the total.
Power, Output Gains.
Electric power production this
week was higher than the previous
week for the first time since late
In January. While the increase
was small, it still was regarded as
q strong indication that industrial
activity was more pronounced on
a national basis because conSump-
ton of electric power is one Of the
most trustworthy barometers of
business conditions known to
economists.
There were other encouraging
signs. The big Altoona, Pa, shops
of the Pennsylvania Railroad re-
sumed work, ending q shutdown
that began on May 40 because Of
slow business; May sales of Brown
81 Bigelow. st. Paul makers Of
wide variety Of novelties and spe-
cialties for the consumer and
advertising trade. were the largest
in the firms history. Asserting
that businessmen are doing some
thing about getting new customers
and holding old ones. Charles A.
Ward, general manager Of the
firm, said the heavy sales indi-
Gated "a turning point in the
thinking that had slowed UP bust
ness during the early months of
the year."
Steel Rate Watched.
A sharp fall in steel production
the worst of the year and the
seventh in o row-was the focal
point of production charts this
week. The operating rate Of 91.8
per cent Of capacity was the low
est since last December 20. The
weeks tonnage of 1852. 800 tons
was the smallest since late July.
1948, when mills were just getting