UNITED STATES TRADE

Dominion, Volume 22, Issue 70, 15 December 1928, Page 11

UNITED STATES TRADE

PROSPEROUS TIMES GREAT INDUSTRIAL ACTIVITY According to official reports received from the United States Department of Commerce by Mr. Julian B. Foster, American Trade Commissioner at 'Wellington, tlie United States during October experienced tlie greatest, business and industrial activity ever, known at that time of the year. Reports from all sections of tlie country indicate the continuance of the splendid industrial conditions which have characterised trade during most of the fall. The major industries have begun the fourth quarter under most favourable circumstances, and there is every prospect that many financial and business records will be broken this year. Automobile Production. One of tlie outstanding features of the season’s business activity is tlie wonderful manner in which automobile production has continued to hold up. The total of 413,722 cars and trucks produced in September, although falling below the record established in August, was the largest output of any September on record. For the first nine months of the year the output totalled 3.469,075 units, which is 2.2 per cent, greater than the production for the entire year of 1927, and only slightly below the record established in the first nine months of 1926. Production continues at exceptionally high levels, and the industry appears to be assured of a new high record for the year. The Steel Industry.

Steel ingot production continues to exhibit a remarkably high rate of activity. The output of 4.147,553 tons iu September ran 3 to 4 per cent, above the highest estimates made on current trade information, and compares with 3.268,881 tons for the corresponding month last year. The daily average production showed a gain of 7.2 per cent, over August, and 31.9 per cent, over September, 1927. Mill operations were at the rate of 88 per cent, of their theoretical capacity as compared with an average of 84.08 per cent, for the nine months’ period. During October operations were maintained at close to the 90 ner cent, level, and, although there are some indications that the peak has been passed, it appears certain that 1928 production will establish a new record. The underlying strength in the present situation is in the continued demand of the automobile, structural steel, and agricultural implement industries, together with an increasing demand for railroad equipment. Construction Contracts.

The volume of construction continues at a level which apparently assures a new record total for the year. Contracts awarded in 37 States during September were valued at 587,674,000 dollars, a new record total for that month, and an increase of 43 per cent, over the 1927 figure. For the first 26 days of October, a total value of 524,930,000 was reached. While this is slightly below the total for the corresponding period of last year, the cumulative value of contracts awarded since the first of the year amounts to 5,657,874,000 dollars, an increase of 6 per cent, over those of the corresponding period of 1927. Cotton Textile IndustryThe cotton textile industry shows some signs of improvement after a long period of depression. Curtailment of production, and an increased demand for cotton piece goods, resulted in sales exceeding production by 50 per cent, in September, and reduced to some extent the rather heavy carry-over of stocks. New Bedford mills are resuming operations with some 16,060 mill hands returning to work, and the mills operating at about 60 per cent. Consumption of cotton in the United States in September totalled 492,221 bales, a decline of 6.5 per cent, from the preceding month, and of 21 per cent, from the like month, a year ago. Exports totalled 814,569 bales, a gain of 29 per cent, over September, 1927. Railroad Earnings. The first twenty-five railroads to report earnings for September show net operating incomes aggregating 56,869,000, dollars, an increase of 2.5 per cent, over the corresponding period of last year. The gross income of these same roads amounted to 224,002,000 dol., a decrease of 1 per cent, from the September gross in 1927. Employment. Employment in manufacturing industries increased 1.3 per cent, in September, as compared with August, and payroll totals increased 1.2 per cent. Although employment totals were some 0.7 per cent, below the same month last year, they were higher than at any time since last October. Payroll totals were 1.3 per cent, greater than in September last year, and were also higher than at any time since June. 1927.