"The Recession Is Over"

Said Presidential Economic Adviser Gabriel Hauge last week: '"We have reached a position where the retreat from the July, 1953 levels has been stopped . . . where the economy is catching its breath for a new advance." As good omens for the future he listed the longer work week, the strength of retail buying, the stability of total output. Said Hauge: "The recession--call it whatever you want--is over."

But readjustments were still being made in many an industry. In the petroleum industry, sales have not come up to summer estimates. As a result of overproduction, wholesale gasoline prices skidded on the Gulf Coast and Eastern seaboard, and retail-gas wars were flaring up east of the Rockies. The Texas Railroad Commission (which controls the state's oil production) announced that it had cut August allowables to 2,721,104 barrels a day because of a drop in demand.

The stock market also took a breather. The Dow-Jones industrial index closed the week at 339.96. off 1 1/4 points from the previous week--the first time in a month that it was down for the week. But aircraft stocks were helped along by the Air Force decision to sign contracts for $1 billion worth of new planes in the next four months--many climbed to their bull-market peaks.

Retail sales across the nation showed an increase, and the U.S. consumer still has plenty of money to spend. Personal income, the Commerce Department reported, was up to an annual rate of $285.2 billion during the month of May, $800 million above the month before.

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