Production Jump

The rise in U.S. production, steadily picking up speed, in November made its greatest jump of the last five months. Industrial production, reported the Federal Reserve Board last week, rose three points to 141% of the 1947-49 average, was within four points of its pre-recession peak of August 1957, and two points above a year ago. The rise was largely due to a jump in auto production, which, despite a strike at Chrysler (see below), last week reached 142,609 cars.

P: Retail sales reached a record $17.3 billion in November, and department stores across the nation reported sales up 7% for the first week of December. Forecast for Christmas sales: a new record, 3% to 4% over last year.

P: Unemployment in November held steady, though it normally rises during the month.

P: Steel mills ran at 74% of capacity, maintained that rate into December. Industrial inventories of steel dropped to an eight-year low, making prospects bright for future production increase.

P: Industrial spending on new plants and equipment began to turn up, said the Commerce Department, but new plant expenditures for the third and fourth quarters will be a little less than expected, will pick up only about 2% in the first quarter of 1959.

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