Gradual Recovery

Business statistics provided some hindsight last week on just when the economy started to turn around and how fast it is recovering. The recession lost most of its steam during 1958's second quarter. Now, as the National Association of Purchasing Agents said, "business recovery is proceeding slowly, with no great upward surge anticipated in the immediate future." Mileposts:

P: Gross national product, as finally calculated for the second quarter, rose to an annual rate of $429 billion, a strong $3.2 billion more than the first quarter's $425.8 billion figure.

P: Inventory liquidation slowed to an annual rate of $8 billion in the second quarter--not good, but better than the first quarter's $8.8 billion rate of cutback.

P: Construction contracts for the second quarter climbed 5%, bringing the six-month total to $16.8 billion, only 1% less than 1957.

P: Mortgage loans at savings and loan associations rose $1.1 billion in June, the highest total since August 1955.

P: Domestic machine-tool orders for July slipped 8.6% below the June level to $22.2 million. Yet toolmakers noted increasing inquiries, thought follow-up orders in autumn would put them back on the rise.

P: Oil production for September was hiked to a twelve-day schedule by the Texas Railroad Commission, the third straight monthly increase in allowables since the eight-day month in June.

P: Steel climbed to an operating rate of 62.2% last week, the seventh straight weekly increase despite earlier talk that there would be no upturn before the third quarter.

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