No Boom, No Gloom

Few experts keep closer watch on the U.S. economy than company purchasing agents, whose job is to gauge whether prices will go up or down. Last week at their annual meeting in Atlantic City, the purchasing agents arrived at a verdict of "cautious optimism" about business. Though few saw a sharp rise ahead, even fewer saw any reason for gloom. The majority agreed with Economist Martin R. Gainsbrugh of the National Industrial Conference Board, who saw signs of a modest business upturn in the second half of 1957. Said Gainsbrugh: "Total business activity is considerably stronger than would appear from a quick glance at the figures."

Items:

P: Department-store sales for the week ended May 25 slipped 1% behind the corresponding week in 1956. Yet according to the Federal Reserve, sales for the year to date were 2% better than last year. Predicted Chicago's Commercial Discount Corp., after a survey of 361 retailers: sales will wind up 1957 at least 6% higher than 1956's record.

P: Steel production edged up 2% last week to 86% of rated capacity for the first weekly rise since March. Said U.S. Steel's executive vice president, Richard F. Sentner: though inventory buying has been cut 50% (to 2,000,000 tons) in 1957's first quarter, "major steel-consuming industries, with the exception of home appliances, are using more steel than in 1955 and 1956. Output will closely approach the alltime record of the past two years."

P: Construction contracts in April dropped 9% below the year-ago level, reported F. W. Dodge Corp., yet 1957's four-month total of $10.3 billion in new contracts is just about equal to 1956's alltime peak.

P: Appliance sales, down sharply so far in 1957, are climbing out of the slump. Said Whirlpool-Seeger Corp.'s president, Elisha Gray II: "We interpret the general indices as showing much improvement for the last half of the year."

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