U.S. Industry’s Production Drop

Press, Volume XCVII, Issue 28539, 19 March 1958, Page 13

U.S. Industry’s Production Drop

WASHINGTON, March 17. Industrial production slumped in February to the lowest level since December, 1954. The Federal Reserve Board reported today that its index had dropped three points to 130 per cent, of the 194749 average. This made the index 11 per cent, below the high level of a year ago.

Production of cars, household appliances, machinery and other durables in February was 16 per cent, below the rate a year ago, the board said.

The board’s monthly summary of business conditions summed up the state of the economy in these words:

“Recession in economic activity continued in February. Industrial production, employment, incomes, and retail sales again declined, and unemployment rose to a new post-war high. Construction activity was curtailed slightly. “In February and early March, prices of farm products and foods continued to rise, while prices of industrial \commodities changed little,” it said. The report said bad weather had contributed to the over-all reduction in industrial activity but had led to a rise in production by the electric and gas utility industries.

Norwegian Ship Beached.—The 7563-ton Norwegian steamer Kingsville has been beached at Hashihama, on the west coast of Japan, after grounding lastnight, Lloyds reported today. Three holds of the vessel are flooded, and the crew of 50 has gone ashore, the Lloyd's message added. —London, March 18.