Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-08-04
Rising Profits
Give Economy
Hearty Glow

NEW YORK (AP).-A hearty
glow was cast over the Ameri-
can business scene last week
by reports that second-quarteI
profits hit a record high pace
General Motors, United
States Steel and Dow Chemical
Co. were among firms report
ing booming activity, contrib
uting to evidence that overall
earnings were UP about 10 pei
cent from the same period Of
1862.
Meanwhile, the stock market
broke a string Of IA Blue Mon
days, new construction contract
statistics showed continued
vigor, manufacturers sales rose
to q new record and employ
ment hit an all-time high Of
70.9 million while unemploy-
ment declined to So per cent
Not all news was CHEEKY
however. Steel output dropped
to its lowest level Of the year
and retail sales slipped / pei
cent from the previous week
for the second straight decline
(though they stayed above
year ago).
Also, two time bomb prob
lens continued to tick away
A nationwide rail strike still
threatened, though efforts WERE
made to push the deadline bach
another so days from the pres
ent August 20 date.
Difficulties Continued
And the difficulties of bal.
ancing international accounts
continue to press, with q new
study criticizing the tax or
sales Of foreign securities rec.
commended as one treatment BY
President Kennedy.
The business community also
examined portentS of the pro-
posed arms-ban treaty, watched
congressional progress in ham
mering out q new tax bill and
studied new snags in trade ne
gotiations with the European
Common Market.
Price activity attracted at
tention during the week, with
the consumer price index hit
ting a record 1865 per cent
farm product prices rising 1.6f
per cent in a month, clothing
makers telling of fall rises OF
about 5 per cent, zinc prices
rising while some copper goods
fell, and sugar continuing to
slide off its spring peak.
1917 Measure
The First National City
banks survey of 952 non
financial corporations shows 9
second quarter rise Of about II
per cent from the previous Sec
ond quarter and q IL per cent
hike from the previous quarter
The Wall Street Journal com.
putes that such a rise coul6
carry second quarter after-taS
corporate earnings to a rate Of
more than $28 billion a year
topping the all-time record rate
of $27.7 billion in the final
quarter Of 1850.
Industries figuring largest in
this rise include, with autos oil,
steel, building products, air.
craft, railroads, apparel stores
and airlines.
Among the industries moi
participating in the uptrend
were aluminium, still trying to
recover from price cuts last fall
and other nonferrous metals
firms, including copper COM
panies that cut back output tc
avoid price-depressing sur
pluSeS.
Construction Gains
Construction figures for June
rose Is per cent from the year.
ago level to $4.4 billion, F. w
Dodge Corp. reported. It listed
a half-year rise Of 6 per cent
Sales by manufacturers hit
q record of 1851 billion in
June. but the new order total
for all manufacturers declined
one per cent to 1852 billion,
the second consecutive month
ly decline.
The orders drop was &C.
counted for by the continuing
decline in steel demand as
users use up stockpiles they
acquired as a hedge.
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