Still on the Climb

The U.S. economy last week showed a seasonal briskness that put new pep into the statistics. Private housing starts hit the highest level of any month since September 1955 with a seasonally adjusted annual rate of 1,260,000. The nation's industrial output edged up another point to 138% of the 1947-49 average, 9% above the recession low. With unemployment still dropping between September and October, consumers stepped up their buying in the nation's department stores by 2% over a year ago. And steel production, reported the American Iron and Steel Institute, rose to the highest level in a year, with production of about 8,816,000 tons in October v. 7,610,372 in September.

The big question in the economy is still the auto market. Auto dealers reported demand for the new cars still running from 25% to 50% over last year. Ford has twice as many dealer orders now as a year ago, Buick three times as many, and Plymouth is up 16%. But there are still not enough cars to meet demand and get a true picture of the market. Last week, to make matters worse, a five-day walkout of white-collar workers at Chrysler Corp. forced a 63% slash in output, and Rambler stopped production after the Budd plant at Gary, Ind., makers of Rambler underbodies, went on strike.

If the shortage continues much longer, many a dealer fears he will lose sales. Some of the more optimistic have already lowered their sights. "We had a terrific reception to the new models," says John Bugmire, general manager of Atlanta's Nalley Chevrolet. "This shortage hurts badly." Pontiac Dealer A. E. England of Hollywood, Calif, said that "You can't firm an order when you haven't got a model to show," and Irving Esserman of Chicago's Esserman Motor Sales, a large Chrysler-Plymouth dealer, said flatly that "We're being strangled by the shortage of cars. We can't make delivery commitments, and we're losing business."

Though the Budd strike and the aftermath of the Chrysler strike will cut this week's production under last week's 1958 high of 125,279 cars, most automakers are putting on full steam to catch up to the healthy demand. Chevrolet last week produced 35,000 cars to pass Ford in weekly output for the first time this model year, hopes to reach 42,000 in three weeks.

Ford Motor Co. scheduled a 6% rise for this week over last. Ford also started production of its new Galaxie (TIME, July 28), dreamed up last spring after Ford got a worried look at smuggled sketches of the 1959 Chevrolet. Rushed into production to compete with the Chevrolet Impala, the Galaxie series of six models has an elongated Thunderbird roof set on a Fairlane 500 body, lists at $2,303 to $2,591. Sight unseen, Ford's new car has already drawn 65,000 orders from dealers.

This file is automatically generated by a robot program, so reader's discretion is required.