Milford chronicle., 1957-10-25
Philadelphia Federal Reserve Bank
Issues Fl Look at Business On
Il High Plateau"

generally were less active because
of a reduced heating demand
through the milder-than-usual win
ter and spring months. The over
seas demand, however, has been
increasing. Lately, sharply lower
ocean freight rates have greatly
improved the competitive position
of anthracite in all of the more i'm
portant European markets.
Building activity, as measured
by the value of contracts awarded
in the larger city areas of this
District, has continued to run
little above 1856 levels. This fav-
orable comparison reflects larg-
er dollar volume of contracts let
for public works and utilities and
nonresidential buildings. In the
ield of BODYBUILDING, however,
sharp declines from 1856 have per-
sisted since the very beginning OF
the current year. On the basis OF
f. w. Dodge figures, housing
awards have been off sharply In
cities like Philadelphia, Allentown
Bethlehem, Harrisburg, Lancaster,
ind Reading. These areas account
Cor about two-tnirds of the Pis-
trict's residential contract total.
Wilmington and Trenton were two
;ity areas also having significant
dollar volume of residential
awards where activity has been
considerably higher this year than
asst.
Department store sales over
much of the year to date have been
he most encouraging of all local
business indicators. Dollar volume
n the District as a whole and in
virtually all our larger city areas
continued above 1856 through Aug
Ist. And in two of the first eight
months, sales on a seasonally ad-
usted basis were the highest on
record. But September business
vas disappointing, with weekly
sales figures trailing those of
year earlier by substantial margins
t is difficult to pinpoint the reason
or this reversal Of trend. 1t seems
likely, however, that unseasOnably
warm weather over much of last
Month was discouraging to shop
)ers' interest in the new lines of
all merchandise. And an early
labor Day could have prompted
;ome back-to-school buying in
August.
New paSSenger-car registrations
n Third District counties of Penn
,ylvania compared unfavorably
With 1856 in almost every month
through August. Although the
rend was toward higher levels in
he late spring and early summer,
he extent of seasonal Improvement
vas considerably short of expecta-
lions. Registrations in the first
eight months were IL per cent
smaller than in the same period of
1856. On a quarterly basis, the
sharpest decline came in the initial
hree months, when the cumula-
live figure was off % per cent from
year earlier. Used-car markets
n our area provided a somewhat
brighter spot in the automobile
iales picture, with demand general
y we'll maintained at stable prices.
Freight-car IOadings in the Allie
gheny region, which includes this
Federal Reserve District, have been
running slightly below their year
ago level. Much of the decrease
from 1856 reflects smaller ship
nents of coal and merchandise and
miscellaneous freight The latter
category is made up in considerable
part of manufactured products.
Preliminary data covering most of
September suggest that car load
ings may not show their usual sea-
sonal increase in that month. A
recent forecast of fourth-quarter
.oadings by this regions Shippers
Advisory Board calls for a decrease
Of about per cent from the COM
parable 1856 period.
Farm cash income in Pennsyl-
vania, New Jersey, and Delaware,
showed virtually no change from
a year ago in the seven months
ended July. In that period, larger
receipts from crops Offset a small
decline in the livestock component,
attributable chiefly to low prices
received for poultry and eggs
throughout the spring months. But
heavy crop losses sustained in last
summers record drought suggest
an unfavorable income comparison
in the months ahead. Although
some increases are expected in re-
ceipts from livestock products, it
is unlikely they will be sufficient
to offset losses stemming from
greatly reduced marketings of mid
season crops.
Living costs in our area, as else
where in the country, still give
little indication that the rising
trend of the past twenty months
may soon level off. In Philadelphia,
the Bureau of Labor Statistics in
dex measuring consumer prices has
continued to advance in all but one
of the past eight months, and in
mid-August was approximately 8
per cent above its year-agO level.
Locally. steadily rising prices for
foods have been the chief cOntri-
buting factor The cost of both
medical and personal care also has
been increasing. But the housing
and clothing components are little
higher than at the turn of the year,
despite considerable fluctuations
between winter and midsummer.