THE CHINA MAIL, MONDAY, MARCH 21, 1960.
Weekly survey of American economy
BOOM BEGINS TO DWINDLE
Industrial output
shows a decline
There
New York, Mar. 20.
were more signs this past week that the U. S. economy is levelling off again.
Two key statistica! yardsticks! confirmed the trend: The index of industrial output which for the month of February showed an netual drop and the nation's income which falled to rise.
Thus the upward awlag of the which started last economy, December with boom-like pro- portions following the settle- inent of the steel sirlke, come to a stop.
The political implications of the economie picture were for the first time being discussed In print, Some authoritative trade magazines even indicate slowdown In there might be a general Industrial Relivity at a Time that would be inauspicious
November indiced--the
pre sidential election.
'Very healthy'
The reading of the industrial production and personal savings indices for February was not lost on President Eisenhower who at mid-week mode #a term the site of the -point to
economy "very healthy
very one." He said some very boki predictions had been marke at the start of the year as "some people always want a recovery curve mounting more steeply." His advisers, he said, have ot
"take ways counselled to moderate target."
Blarting for the Gral time
Based on the now index, the originally January output was
The estimated at 112 per cent.
revised downward Agure, was
111. this post
Hased week to on the
which the old index.
Reserve Hoard also Federal used for comparison purposes, reads at the February output 107 ver cent, one point below the revised January reading and 12 points above February 1050.
Lowor production
Lower production of cars ap- consumer pilances and other goods was cited as responsible for the drop. Production of raw materials showed little da cline from the month before,
(10 In
roport, separate Commerce Department said per- sonni
income in February was maintained at an annual rate of $393 billion. This was just a shade over January's rale $392.8 blilion but well above the $37 bilion achieved in February last year,
A
of
Wages and salaries in- creased to an annital rate of $268.8 bilan in February, up 5700 million from the month before. Most of the gain oc- curred in sales and services, however, while manufactur- ing payrolls were reduced by 5300 million because of less overtime pay received by car workers,
NY market made good gains
HONGKONG London succeeds during the
in strong
STOCK EXCHANGE
by:
Our Own Correspondent
Eusiness done at the Hong
Shares BANKS
Buyers Sellers
.. 1200 120S
this
Bales
31270 12 1200
quarter, the April-June period Inst year just before the strike.
The expected rate of opera-
Stock kong
Exchange tons in the second quarter will
between 80 and morning amounted to approxl- be somewhere
cutbacks mately $1,071,000. Noon quota- 85 per cent. Despite troin the automotive customers, tions and the morning's trans- colt rolled steel makers expect Retions; near capselly production through June, Sheet producers tried to anticipate Detrolt cutbacks by uk Bank
business they
INSURANCES booking all the could get.
Unioo produced Lernbard steel mille The 11.119,000 tons in February, 2 SHIPPING record for that month, tho
Wheolock American Iron and Steel In- willple reported,
Thla compared with 12.049,404
January. tons in which was a record for any
with month, and
9.602.938 tons in February 1959. The average operating rate of the 211111
B1.2 In February was
capacity, comTM per cent of
cent with 95.5 pared
per
2011
703
4014
7.35 1000 7.30 2000 7.30
05 DO 110D 64 BA
18.20 10%
M
+30
DOCKS, ETC. K. Wurf Dock
Provident
XD Tolkoa Dock
Hik lictel
LAND, ETC,
150 in 5335 500 * 83
recovery bid
London, Mar. 20. Share prices strode ahead this past week in a strong recovery that lifted the Financial Times index 14.7 points to 322.6 and 16.5 points above the year's low. The buying wave found the market short of good class stock and dealers raised prices. The institutions moved in on issued which had recently fallen back and the pubile was also in the feld, encouraged by the stream of excellent company ngwi.
The volume of buying for the new account, starting Monday, showed some buyers were not
600 or 18.40 being held back an tight budget fears. Wall Street's better sen- timent helped the tone. Some of the lesser known shares scored good rises along with the leaders. Steels were in demand and en- gineerings were wanted with breweries, tobaccos, chemicals, motors and selected textiles.
XD .....
357% 30% 1000 30 Land
491
GO 1000 DO X Al
21.40 21.00 Humphreya Realty
1.70 1.75 5000, ** 1.75
0.00 5.70 5000* 0.75
7.40
Trient
during January, Meanwhile the steel scrap RUDBER market, which over the past Amalg weeks has registered drops of as much as $7 a ton, hoped for signs of Brming following order from Japan for more than Sungals balf a million tons of steelmak- ing scrap for delivery in
the second quarter. Last week the Prime grade of heavy meling scrap dropped another 67 cents to $34.33 gross ton.
Youmalt XD c. Light 22.40 22.00
10000 5.63
1300 1.40
1000 6 7,45 3000 7.50
3000 4
BONDS QUIET
299 and the per cents of 1020 rose
4 to end al 232, German Dawes 5 per cents went
a fraction better.
Dollar stocks had mixed days but Friday's cheerful close gave the lenders rises on the week. U.S. Steel were up 5 points, Shell Oll four points. Chrysler, General Motors and Standard Oil were each 2 points better, International Nickels were 54
over the week.
יי
Golds won back some glikler. Salon from the continent cossed and Cape buyers moved irs and found support from London. A minor dift started Friday in
markets quicter
but prices Diamonds re-
week
New York, Mar. 20, ・・ Stocks made best gains in the guletest trading
since October 16, during the past week.
At the week's close, the Dow- What worries Wall Street in market's inability to Jones Industrial average was at the 610.42 up 10.69 polnis un the generate volume on aitvancos. weckt, rallroad 145.44 up 127; The fact that volume is light on utility 87.44 up 1.10 and the declines is regarded as favour-
3.20 points.
to
5-stock composite 204.20 up able. Until a bigger volume on
OIL SHARES
the upside develops market Sales for the week amounted men hold the list on the defen-
sive. mera 12.948,300 shares, 13,080,004 In the pre- against vlous week and 11,543,100 in week ended October 18, the
average cach day 1950. Tho amounted to 2,530,000 shares, against 3,108,012 and 2,309,021
pre shares respectively in the vious periods,
Car sales in the first third of Merch were off seven per cent up four from February but per cent from a year ago. What bothered
the traders was the
Strength in oil shares was 12 fenture of the week. Gains in the group ranged to more than three points in Taxaco and Shell Oil. Richfeld was up nearly three, Kerr McGee up Your and Royal Dutch two. Standard Oll (NI) gained a point.
Sheet eased
U. S. Steel rose 24 in the stects and Youngstown gained 3%. Bethlehem
Chemicals had gains alightly. Inventory of new cars above a million to a now high. Car pro-ranging 315 in Union Carbide rose on the week and and four in Eastman duction
Kodak. was well above a year ago.
Procter & Gamble and Interna- tional Paper roso more than three each in their respective divisions.
PRICE RISE Wheeling steel predicted that
American Motors topped the ended steadier.
a price rise in steel eventually gained some lost ground and Do would have to be made. Inland let in activity with a turnover Beers recovered by five chillings Steel looked for a record year of 191,800 shares, closing the In profits. Steel production week at 22% off point. Universal Oil Product, Standard 7% pence to 175s 7d. Coppers slipped back two full percentage tended duli but is made a
polnis. Wall Street, however, O (NJ) Studebaker-Packard good showing across the week,
Musical Industries and Motorola Olts made a come back with looks for the final figures for when-issued stock, Electric and the quarter on steel output to
followed in that order and all all the leaders scoring useful set a new record high,
showed gains of fractions galon, the market ending on a cheerful moto in advance Oil companies said their re-three points.-UPI. Imminent company news. cent cutbacks in refining will Foreign bonds slayed lifeless Rubbers improved on good in bring a better inventory posi-
olls Somo
developed Teas went tien. but Greek 7 per cents managed vestment buying 1700 27.40 1600 27.39 1-point gain on the week to Arner and were often better activity during the week.
500
where changed.—UPL.
Unemployment fell below four million during February. Employment
1500 / 33
300 33
3.00
UTILITIES Tram XD ..
325 3314
100331%
100
000 ut 22.00 3550 M 22.00 1000
Electric... 20.00 27.30
30% 30%
XD
The key economie factor ear production-recovered from the blows of the late winter snowstorms but still hovered Telephone around the 150,000-a werk
lact Production
week mark. totalled 160,854 units compared with the previous week's 138,513. The auto industry ap- INDUSTRIALS parently does not intend to re-dement turn to its 175,000 unit-a week
to use a new base for its in- Keyed to the var production dustrial production Index-pattern, the nation's steel out- that of the 1947 production put has been dropping imper-
100 the ceplitsly average
over the past weeks. equalling
Bald Federal Reserve Board
Last week's operations were re- last month's production was ported at 92.0 per cent of
com-capucity at 110 per cent. This
with 2,047,000 ingot with 111 per cent pared
tons, Even as it is, the steel in- January, 189 in December and
dustry was headed for a new The record this first quarter. pace with which it started the STORES, ETC. estimated output for the Jan./year, unless there are signs that Dalry Mar. period is 34,700,000 tons, current record high inventories nearly a million more than was of new cars are being disposed poured in the previous best of nt a faster rate.-UFI,
מ1
102 in February a year ago.
Re- Previously, the Federal
1947-49 serve Board used the average as the basis of its in- dustrial output index.
27 20
200 37% 100.37% 300 & 37 300314
The plus signe, however, did not extend to Government bonds which went through a quiet week. Consols 2 per cents dipped to £47 and War Loan 3 per cents lost to close at
£62 11/10.
Exchange rates
of
COTTONS Textile
150 por 31 2300 3674
Nanyang
9.63 9.75 2000 9.74 1000 8.74 15.30
MISCELLANEOUS
Gilman
100
4000 1.90
4415
700 444 DCO 44
500 g 4432
20.00 20.00 Watson .... 20.00 27 1000 20.00
Cajabeck,
Macgregor INVESTMENTS
Int.
20 **
8,0
1000 V 1.95
500 E LA
Allied
100 + 20.30
11. Crow,... 3234
Invest
11 & FE'
6.70' 0.85
IG 10.30
800 11.20
Bundness was done in the loco unofficial
market exchange mang at the following rates: V.3. dollar (per® #1). Sterling noted (per 1 Australian noted (per £ indomerlan rupiah (per 100) Sam ticals (per 100) Singapore (Straits)
8.73
1501 2.00 30.00
18
400 m 20,8
new
act February high. This situation was seen as highly favourable,
Bank of England statement
London, Mar. 20.
to
The Bank of England state-
Electricity output set a newment for the week ended March six-week high,
Housing starts for February ran at a rate of 1,115,000 unils, 1995 of eight per cent from the January rate which in turn was down stre per cent from December.
18. reads as follows: Notes in cleation Public DeposĒL Private Deposita kuva Government æcuritie Other securities in Trecepits Ratio
£2121.1345
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