Evening star., 1963-05-03
BUSINESS TRENDS
BuIIishness Stirs
Words of Caution
BY CHARLES COVELL
Star Staff Writer

Buishness in the wake Of generally improved first
quarter business tempered here and there with words Of
caution
Signs have good THE first quarter wound up with
business activity and nearterm prospects looking distinctly
better than they did at the turn Of the year. the Office
OF Business Economics Of the Commerce Department re-
ported
Gross national product the total output of goods and
services produced by the economy a-me high
hitting annual of $572 billion This SIS billion
above the fourth quarter of 1862
If the trend continues 1868 gross national product
Of $685. billion being talked That would $40 billion
more than the Governments estimate made in January 1t
also would add about 50 billion to tax collections and cut the
Nations projected $l9 billion deficit by like amount
So far the trend shows signs of continuing Machine
tool buying in March ahead Of the accelerated February
tinued at the March level New construction in April
amounted to 8 billion cent over April 1862 High
way builders are looking for record $5 billion in new bus
ness this year.
The Commerce Department. estimates that retail sales
amounted to $467 billion in the week ended April o. That's
about $40 million greater than the previous week and some
per cent ahead of the corresponding week last
But there other signs Big Steel the stock markets
bewether had disappointing first quarter record S48
billion in factory orders in March about only because
the steel industry has been adding to its inventory as
strike hedge.
Furthermore David L. Babson & Co., in its weekly
letter. points out that corporate earnings the first quar-
ter showed less zip than the improvement in the
would indicate. Considerins the fact that economic
activity higher than early 1862 reports general
somewhat disappointing OF ITO leading companies third
showed lower earnings than a year ago."
Babson added The cost-prce squeeze continued in
GALS glass aluminium building supplies metals paper etc.,
Nothing 1t seems, is safe from the mechanical BRAIN
Steel Magazine predicts that housewives may day
program their washing and cooking balance the bank
count and figure out income taxes with small home
puters. u.t
Such innovations will be made possible by new tech
nology called ntegrated neutrality-suspicious. mcroeectron
les 1t permits all circuits in radio teevison set for
example to be squeezed into eectronc sandwich about
the size Of an aspirin. 5
This technology less than three years old far
nearly all applications have been military space prof.
ects where smalnes and high reliability count than
cost.
Costs will drop when production kinks roned out
but industrial and isn't expected to pick up
much before 1867 Sales expected reach the S20m
lion this year and $500 million $500 million or more
by 1870.
The Super Market Institute reports the best buys at
meat counters continue to be beef and pork Also remaining
the list Of foods in plentiful supply carrots canned
ripe olives and canned freestone peaches Newcomer milk
which reaches peak production in May
According to producers beef output in the first quarter
OF 1868 exceeded that OF last by cent and second
quarter production expected to be at least cent higher
than in the corresponding period Of 1852
Pork production in the first quarter per
the period in 1862 and hog slaughter is expected
tinue well above last year at least through May.