Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1952-07-17

Compiled By The Federal Re-
serVe Board and remubhshed from
the monthly publication of The
Fifth District Reserve Bank.
Industrial production continued
to decline in May and June as
labor disputes cut output sharply
in steel and some other lines. Con-
struction volume was maintained
close to record levels in May, and
retail sales, mainly of durable
goods, expanded. Consumer prices
rose further and were close to the
January high. Wholesale COM
modify prices changed little in
May and declined somewhat in
June.
Industrial Production
The Boards preliminary season.
ally adjusted index of industrial
production in May was 214 per cent
of the 193539 average, down 2
points from April and 8 points from
last February and May 1861. Re-
fleeing mainly the work stoppage
at steel mills, a sharp further de-
cline is indicated for June.
May output of durable goods was
slightly lower than in April owing
largely to a labor dispute in the
lumber industry and to small furth-
ell curtailments in activity in most
industrial equipment lines. Pro-
duction of trucks and passenger
automobiles held steady, while out
put of major household durable
goods declined somewhat further.
AS result of the strike, steel pro-
duction is estimated at about 20
per cent of rated capacity in June,
as compared with 80 per cent in
April and May-also affected by
work stoppages-and with 102 per
cent in March. Reflection expand
ed supplies of aluminium and cop
per, the NPA in mid-June sub
stantially increased the amounts of
these metals that small users may
obtain beginning in the third quar-
ter, without requiring direct al
locations.
A decrease of about Q per cent
in nondurable goods production in
May resulted mainly from work
stoppages at oil refineries, which
were terminated by early June.
Overall activity at textile mills
showed an important gain, while
output of most other nondurable
goods continued at earlier levels.
Minerals production declined in
May and June as coal and crude
petroleum output was reduced ow-
ing partly to the steel and oil re
filming disputes. Work stoppages
resulted In a sharp curtailment of
iron ore mining in June.
Construction
Value of construction contract
awards in Ma continued at the very
high April level as awards for
private construction increased fur
Their, offsetting the first decline this
year in total public awards. The
number of housing units started
totaled 100000 as compared with
100000 in April, and 100000 in
May 1851. Value of new construc-
ton work put in place during May
was a record for the month as was
each preceding month this year.
Employment
Seasonally adjusted employment
in nonagricultural establishments
in May continued at 46.5 million,
the same level as year ago. The
average factory work week at 40
hours was slightly above the re-
duced April level; average hourly
earnings showed little change. At
1.6 million in May, the number I'M
employed was unchanged from a
month earlier and year ago.
Distribution
Seasonally adjusted sales at de-
partment stores, which had in
ceased moderately in May, con-
tinued to rise during the first two
weeks in June. The rise reflected
less than seasonal decline in APP
parel sales and a marked upward
shift in sales of appliances and tele-
vision which had reached a low
point in April. Sales by automo-
tive dealers rose substantially fur
Their in May. Pickup in automo-
tive and household durable goods
sales reflects in part the May 7
suspension of credit controls under
Regulation w.
Commodity Prices
The general level of wholesale
commodity prices declined some
what in June. Wheat prices de-
clned as reports indicated a near
record crop this year, one-third
above last year, and there were de-
creases in prices of livestock
Prices of zinic were reduced 23 per
cent and the Previously announced