Page Z
THE CHINA MAIL, MONDAY, MARCH 28, 1960.
Weekly survey of American economy
OUTPUT BEGINS TO SLIP
Substantial layoffs cannot be avoided
New York, Mar. 27,
Wall Street HONGKONG
advances
in all sections
The U.S. economy was winding up a record first quarter this past week but all indications are that it was abnormal and that substantial lay- offs by steel and car makers this spring and summer cannot be avoided.
This, experts
out, ago. The drop was largely due declined in Jamaury to 405,000 pointed would not necessarily mean n to further cutbacks by many pro- 530.000 while U. S. steel exports tona from the December peak of recension; the rise in joblessness') ducars to adjust venturies-
end of dealers stocks of new cars have recovered from the lows of last will merely reflect the abnormal Arst quarter activity been above the one non level autumn, climbing to 153,000 tons
in January from 113,900 tons in Stocks advanced in all major departments on light
volume during the past week. December.
caused by the settlement of the steel strike mid the need to ré-j build depleted inventorien.
Ometal statistics showing the economy's first quarter perfor- ance may not be available for were the some time but these estimates: National production of goods and services will show a "substantini" rise over the final quarter of 3059 in the words of the-Department of Commerce. The rate may come close to an annuni pure approaching the $500 billion level. Last year's Con quarter showed u rate of $483.5 billion
a
www
The prodleted layoffs would be
substantial enlargement
...
all this month in line with sules. Trucks, however, kept pouring out of assembly hauls at a comparatively high 28,030 this past week and 27,335 the previous week and were actually expected to set new all-time record for the quarter.
As the overall output de- creased, that of the new compact rars was actually being stepped up. They new account for 28.0 percent of the total, compared with only 23.2 per cent of the totut the week before.
Below peak
is
Deficit
DMetally
ono
New York, Mar, 27.
STOCK
EXCHANGE
by
Our Own Correspondent
+
London market
continues to hold firm
London, Mar. 27. Share prices held firm in quiet markets this past week although the imminence of the April 4 budget kept buying in check.
Tho riso in the Financial | shared the weakness and rais Times Industrial Index of 13 back.
Th
points to 323.0 was helped by Glit-edged were quiet but by the good close to
week-end- buyers the week, the following improved Sentiment appeared. Rises went up £1
results from 4 shillings over the week.
Industries
Foreign bonds showed little fe. But Greek issues went casier.
a heavy rise in
excellent Business date at the Hong-after kong Stock Exchange this morn- Imperial Chemical ing amounted to approxi- which showed mately $1,270,000. Noom quota-group sales in the latter half tions and the morning's trans of the year.
actions:
Shares Buyers Sellers DANKA
1240
01240
10 47 1235
UC Bank...
100 4735
Waterboat XD Whertecka
7.20
The
recovery Incked the t Rails fel 22.25 points or 13.8 bounce that would indicate en- | per cent and came back 8.38 |thusiasm for the market. How-points or 37.7 per cent from the INSURANCES over, there was smart recovery | low. Utilities declined 2.22 and Union........ Just before the bell on Friday came back 2.80 polats to leave PPING accompanied by a late lekör. them at a new 1000 high. This may have involved aome short covering by traders. willing to risk bear commitments i over the weekend.
1/1-
AVERAGE UP
Talkoo Dock
The exports of U.S. Steel were still far below their peak levels Brstand were no part of the ad- ministration's new export drive which aims at a ten to Afteen per cent increase in US, export trade over 1959. Although the
For this past week the indus- week drive
trial average closed at 022.37 up DOCKS, ETC. old, government experts already!
Nowa of market importance 0.05 points from the week be-K. Wharf Drek XD are predicting that the deficit in
rulls 140.44, up 1.00; U. S. balance of payments will was mixed. It included favour- fore
com-utilities, 88.15 up 0.71 and 65 Provident XD be cut by about $400 million in able predictions by many the first quarter. The dettelt pany heads at annual meetings stocks in the three averages LAND, ETC. was running at an annual rate or in annual reports. At the same 200.09 up 1.82 points. For the of $3.7 billion last year. Estimate } Ume industry reports were nosi-past twe U. S. exports of goods and ser-ly on the declining side. Steel dustrials have risen 18.04 points; Humphreys
rails, 3.27 and utilities 1.87..
RUBBER vice in the first quarter will operations slipped to a new low
Sales for the week totalled Amais. total $0.3 billion compared with since last November, below 20
a daily average the final 1069 quarter figure of per cent of capacity. Auto oul-593,924 shares,
put fell under the previous week af 2,710,785 shares. This com- Trust $5.0 billion.
but was above last year. Carpared with 12,940,350 shares at Suagala... daily average of 2.580,880 UTILITIES loadings ruse on the week but a were off from 1959. Electricity shares in the previous week. output slipped on the week bul was well above last year.
those that have already occurred
This past week's role is same In mattered pastern = 1}]
six per cent below the peak of steel. cars, constriction, farm equipment and other durable 5.7 per cent reached in January and almost five per cent below goods industries. Although they
rate of 04.4 per The February may not reflect a recession, when
At the same lime, the officials these layoffs do occur, experts cent. The rate has been ing suid, they may have a psycho- down steadily as supply pipelines said, U. S. Imports of goods and logical
effect since the U.S.led more rapidly than expected services will fall off slightly from and the forecast of a seller's seasonably adjusted rate of economy etilered the year with
$5.9 billion in the last quarter high hopes of sustained record i market turned into keen com-
of 1950 to $5.85 Lillion in this breaking activity.
Arst quarter. Eventually, the U. S.. hopes to cut its payments defcit over this year by as much as $2.6 billion.
An offset
They may be offsel somewhat by
in construction, an pum which has been held back by unusually severe weather winter.
this
petition.
As
A
result three things emerge: The 80 per cent operat- ing rate, forecast for late spring arid early summer, will probably be reached substantially earlier; and the generally expected in erease in the price of steel is not likely before the end of the year with no more than a 50-50 chance that it will average $3 to $4 ʼn ton then,
ол
The Department of Com- meren kooked for first quarter Brures to show a substantial compared with the last quarter of 1939,
Lise
Utilities performed better than other sections as of their Thurs day close they registered on average al 1 new high early October. 1950,
since
20 a 1231
175 71
200 85% 160 053% 2004 17.00
8410
3035
NK Hotel..
weeks combined in-ijk Land ..
$1.76
Realty
1.70 1.75
1000D T 51⁄2 33000 $.55
7.55 1.05 3.00
301% 3811
Tram
Special Items helped In- dividual issues at times. Gulf Oil enjoyed a good market when company estimated Arst quarter nel 20 per cent over last year, glu Nickel Plate and Norfolk & Western were active on merger talks, and Nickel Plate scored a
rise of 14 points on the week Electric to at fourth place in
volume.
market
were Some
The undertone was scod and the bigger investors gulotly buying equilles. dealers believe that once the budget hurdle is cleared, can- jalderable funds will be await-
ing investment,
GOOD FEATURES
While the valume of business has been light, the unbroken procession of good company news, the favourable outlook for Industry and Wall Street's better have all made for opperranço nimness and the week has been some good features in individual shares.
Golds made the blot on the market. Selling on political fears in the wake of South Afri can violence drove Union mine issues down. The main weight of sales was said to come from 100 # 31% the continent trut London was also unloading Pricca fell away rapidly for two days but by Alday's close same had moved above the worst.
Diamondla also took a beating and De Beers saw 18 shillings
gains.
Germans
mado slight
Oils had a better appearance in front of coming statements and prices ended on the upside by fractions.
Both rubbers and tens went better.
Mergers in plantations helped the mavement and Coy. lon election news sided teas.-- LAP!
Cotton grey goods at
New
low ebb
New York, Mar. 27.
business In cotton grey goods remained at a low ebb this past week, completing the third month of comparativa
idleness.
Pressure of re-sale offerings on und 9 pence chopped of? over print and broodelatus, usually the week.
They closed at 153/a worth-while venture unther (ex-dividend) against the year's first-hand mill levels kept a rein high of 200 shillings. Coppers (on buyer interest.
300 31
Star Ferry. Yikuumati
100
2000 @ 22.90
100 23
1000 22.80
900 6 2280
300 2.00
.. £0.00
+7
500 6 20.90
100 G 27
2000 420.00
343 344
3.70
27.50
0.40
DAS 2000 9.45 3000 6 9.43
Business was done uromelal 0.60 2000
exchange market
3415
1.020 000 € 2.50
0.80
TN XD INDUSTUALS American Motors led in turn-
Cement over with sales of 322,000 shares, STORES, ETC.
Dairy I gained 2% points on the week
Wetson on higher Rambler sales, Stude-Craw
Just how well this will work. doubt, there is no is still emergence so far of any "buy American" feeling either government or business levels and it is doubtful that one will appear. Indicntions are that the American
has got Finally these developinents in-used to foreign goods and de-
Textile with sales of 180,200 shares and cleate a curtailment of foreign mands them. The latest to its lowest point so far this year steel imports. Although no re- from Montgomery Ward depart-
a loss of points. Its when- chain which with an estimated 138,000 pas-cent figures are available, foreign ment store
issued stock was in fifth place | Nanya
MISCELLANEOUS was increasing its
and up points. Gult Oil, up This
comparest steel imports have been known nounced SCger units.
Guman with 140,054 last week and with to be dropping from their peak, buying abroad in order to stay Swiss Francs, maximum seil-14% points made second place. INVESTMENTS.
UPI. ing 75 7/10. 121,953 in the same week a yeur' levels at the end of 1950. They competitive.-UPI.
A good example of things to come in the second quarter is
prodection this past week's schedule in Detroit: US. output this post week will sink
Can
consumer
came
an-
Agreed merchant baker-Packard made their place CONS
rates
Alled
H
Exchange rates
morning of the following rots:
Now there has been no business of
Since the
CONSEQUITYCO
Eray goods.
year,
placed in cotton
As a result, the unfilled ørder
in the pall position of mills, while still sub-
this
stantial, nevertheless has been 5.73 reduced. With production going up while the demand has been 1201 going down, buyurs decided they SIDO
have little to lose by waiting the is situation out-UPI.
U.S. doll (per $1) Sterling notes (per £1) Australian notes (per 461) Indonesian rupiah (per 100) Slam Ticals (per 100) Bingapore (firalte)
15.05
1.70
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