Wonderful, but...

Through the U.S. business community ran a puzzling undercurrent of uneasiness, prompted in part by the stock market's slump (see above) and fear that tight money will nip the boom. As they looked ahead into the 19603, many businessmen also realized that the prosperity envisaged by economists will demand a lot of no-nonsense elbow grease. Yet news from all areas last week showed the economy to be strong. Items:

P: The steel industry scheduled production for the week at more than 95% of capacity for the fourth week in a row, raising chances for the first 12 million-ton production month in history.

P: Sales in U.S. department stores rose 3% above the same week a year ago.

P: Freight carloadings continued to rise, jumped 2.4% above the preceding week and 3.3% over 1959 to hit 605,757 cars loaded.

P: Operating at a four-year production high, the auto industry turned out its 2,000,000th car of the 1960 model year.

P: U.S. iron and steel companies announced that they will spend $1.6 billion on new equipment and construction in 1960, which is $640 million above 1959 and only $150 million below the 1957 record.

P: The Labor Department announced that the cost of living dropped a tenth of a point on the consumer price index in December. Commissioner of Labor Statistics Ewan Clague said he expects no substantial changes in the index over the next few months, but feels that it might rise about 1% during 1960.

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