SURVEY of CURRENT BUSINESS August 1944 the Business Situation
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AUGUST 1944 SURVEY OF CURRENT BUSINESS UNITED STATES DEPARTMENT OF COMMERCE BUREAU OF FOREIGN AND DOMESTIC COMMERCE Survey of CURRENT BUSINESS VOLUME 24, No. 8 AUGUST 1944 Statutory Functions "The Bureau of Foreign and Domestic Commerce ... to fosterj promote, and develop the foreign and domestic commerce of the United States" [Law creating the Bureau, Aug. 23, 1912 [37 Stat. 408].] Contents Department of Commerce Field Service Page Atlanta 3, Ga., 603 Rhodes Bldg. BUSINESS GENERALLY STABLE 1 Boston 9, Mass., 1800 Customhouse. Buffalo 3, N. Y., 242 Federal Bldg. THE BUSINESS SITUATION 2 Charleston 3, S. C, Chamber of Commerce Bldg. 2 Chicago 4, 111., 357 U. S. Courthouse. Cincinnati 2, Ohio, Chamber of Commerce. 2 Cleveland 14, Ohio, 750 Union Commerce Bldg. 3 Dallas 2, Tex., Chamber of Commerce Bldg. 3 Denver 2, Colo., 566 Customhouse. Detroit 26, Mich., 1018 New Federal Bldg. 4 Houston 14, Tex., 603 Federal Office Bldg. Jacksonville 1, Fla., 425 Federal Bldg. 4 Kansas City 6, Mo., 724 Dwight Bldg. MAGNITUDE OF TRANSITION FROM WAR Los Angeles 12, Calif., 1540 U. S. Post Office 6 3.1111 K^iJllL LIAlJllbtj* PRODUCTION Memphis 3, Tenn., 229 Federal Bldg. Minneapolis 1, Minn., 201 Federal Office Bldg. STATE INCOME PAYMENTS IN 1943 12 New Orleans 12, La., 408 Maritime Bldg. New York 18, N. Y., 17th Floor, 130 West STATISTICAL DATA: 42d St., New York. S-1 Philadelphia 2, Pa., 1510 Chestnut St. Pittsburgh 19, Pa., 1013 New Federal Bldg. Portland 4, Oreg., Room 313, 520 S. W. Mor- rison St. Richmond 19« Va.« Room 2. IVf ezzanine. 801 E. Broad St. St. Louis 1, Mo., 107 New Federal Bldg. San Francisco 11, Calif., 307 Customhouse. ilOlC—Contents of this publication are not copyrighted and Savannah, Ga., 403 U. S. Post Office and may be reprinted freely. Mention of source will be appreciated Courthouse Bldg. Seattle 4, Wash., 809 Federal Office Bldg. Published by the Department of Commerce, JESSE H. JONES, Secretary, and issued through the Bureau of Foreign and Domestic Commerce, Amos E. Taylor, Director. Subscription price of the monthly SURVEY OF CURRENT BUSINESS, $1.75; Foreign, $2.50 a year. Single copy, 15 cents, s. Price of the 1942 Supplement is 50 cents. Make remittances only to Superintendent of Documents, U. SViG-overnment Printing Office, Washington 25, D. C. Business Continues Stable HE STABILITY which has charac- of 50,000 was less than the average terized the economic situation dur- monthly change since the downward inTg 1944 is evident in the series of charts trend was established. Wage earners Revised Business Statistics below. Only preliminary data are avail- employed in manufacturing industries able at this time for July but these in- in June were one million below last In this issue of the Survey nu- dicate that, aside from seasonal varia- November. t merous revisions have been made tions, little change occurred in that This decline in manufacturing em- in the data presented in the month. Production and income con- ployment has not been accompanied by Monthly Business Statistics on tinue high, with consumers' expenditures increases in unemployment compensa- pages S-l to S-36. matching the even flow of goods to the tion claimants. Individuals receiving New statistical series are indi- market, and the public absorbing a large unemployment compensation payments share of the Fifth War Loan floated cated by an asterisk. Among the in June numbered 78,000, compared with more important subjects included, during the month. 100,000 in June 1943, and 553,000 in June Industrial production, commodity 1942. either in the form of new statisti- transportation, and munitions produc- cal series or series whose publica- tion all trace a nearly horizontal pattern, Sales of retail stores reflect the general tion is resumed, are: Production as does new construction activity—the stability, the recent tendency being and stocks of chemicals; plywood first three at about peak levels and the slightly upward. Like other indicators, the comparative gains over a year ago and veneer production; produc- last named at the wartime low. Income tion of cotton goods; woolens and payments have continued to rise, mainly in sales have tended to lessen, since the by reason of increased payments to the first half of 1943 was a period of general worsteds; production of trucks; armed forces and their dependents, and economic expansion, paced by the rap- data on nonferrous metals and the rise in farm income. The rate of in- idly rising flow of munitions at that time. their products; and data on num- crease in these payments has slackened, For the first half of 1944 sales of retail ber of operating businesses and however, with the leveling of basic pro- stores were 8 percent above the corre- business turnover. duction. sponding period a year ago. While the Because of the limitations of The commodity price indexes have price rise indicated by the Department available space some statistical been held steady. Stock prices lost of Commerce retail price index (2 per- series necessarily had to be elimi- some of their buoyancy in July, but there cent) was less than this, it is difficult nated, but the net result has been was a further net gain for the month. to measure the change in volume be- cause of the shifting composition of an improvement in the statistical The gradual release of workers in man- series made available. ufacturing industries extended through sales. Indications are that the volume the first half year, but the June decline was higher. INDEX, 1935-39 = 100 INDEX, 1943 = 100 INDEX, 1935-39 100 300 i 150 300 INDUSTRIAL PRODUCTION MUNITIONS PRODUCTION WAGE EARNERS, ALL MANUFACTURING 250 125 - - 250 "N. • I 200 - 100 200 150 - - 75 150 100 i i i i i 1 i i i 1 | 1 1 1 1 I 1 1 1 1 1 1 50 i i i i i 1 i i i \ \ l i I i 1 1 I I I I 1 100 , , , , , 1 , INDEX, 1935-39 « 100 INDEX, 1935-39 = 100 INDEX, 1935-39= 100 300 250 150 COMMODITY TRANSPORTATION NEW CONSTRUCTION STOCK PRICES ACTIVITY (402 COMMON STOCKS) 250 - - 200 - ^^00m 150 - - 100 i i i i i 1 i i i i i i i i 1 i i i i i INDEX, 1935-39= 100 INDEX, 1935-39 • 100 INDEX, 1935- 39 » 100 300 300 180 INCOME PAYMENTS SALES, ALL RETAIL STORES RETAIL PRICES, ALL (SEASONALLY ADJUS!'ED) (SEASONALLY ADJUSTED) COMMODITIES 250 - 250 160 200 ^ " - 200 140 — 150 - - 150 120 - t 00 ! 1 1 1 1 1 1 1 t 1 1 I I i 1 1 1 1 1 1 1 100 100 .....I..... 1943 1944 1943 1944 1943 1944 D.D.44-472 599264—44 1 1 SURVEY OF CURRENT BUSINESS August 1944 The Business Situation APIDLY marching events on the alcohol distilling facilities during the months—at an annual rate exceeding world battlefronts, with steady month of August for the production of $65 billion—-and that not all of the re- Rprogress in all theaters of war, have beverage alcohol products will, of course, sources released from declining war pro- focused increasing attention on the mean a large increase in the supply of duction programs are usable in those economic problems which will arise with such products because of the greatly en- other segments where it is desired to continued success of Allied arms. The larged productive facilities now operat- meet increased military demands. speed with which the European situation ing in this field. is developing is evident from the fact These steps are symptomatic of a Changing Patterns of Production that on the same day that the Russian trend, rather than indicative of a gen- For many military items peak produc- armies reached Warsaw and the Baltic, erally increased flow of civilian goods tion has already been passed. For Turkey broke off relations with Ger- in the near future. Excepting the alco- others, increasing production is still de- many, the Finnish president resigned, hol action, they will have relatively slight sired to meet requirements. The results and Allied forces in France pushed effect over the next few months on the are widespread shifts in contracts and rapidly across the Brittany peninsula. volume of available civilian goods be- schedules. To date, it is apparent from The agreement reached last month at cause of existing restrictions upon the the chart on page 1 (top center) that the Bretton Woods conference on inter- authorized volume of output. Moreover, the ups and downs in munitions output national financial problems represents the bulk of the necessary manufacturing roughly cancel out with the aggregate an important step toward the task of re- facilities are located in areas of tight flow of war materiel from factories and building world-wide commercial and fi- labor supply. More than three-fourths of shipyards continuing at a high and nancial relationships in the post-war all shipments of metal-fabricated goods steady rate. era. On the national scene, Congress in the first quarter of 1944 were made by Shipments of metal manufactures il- was urged by War Mobilization Director plants located in areas presently defined lustrate the pattern. The divergent Byrnes to give immediate consideration by the War Manpower Commission as changes, masked by the overall stability to providing for -the disposition of sur- tight. plus property, and to the establishment but apparent in the operations of fac- of a demobilization agency to formulate The significance of these actions of tories throughout the country, are illus- reconversion policies. Legislation to the past month is that they represent trated by broad categories in chart 1. meet the demobilization problems was recognition that materials and men are In total, shipments of metal products the first order of business as Congress being released from war production; of have shown the same stability as pro- reassembled on August 1 after its mid- the importance and imminence of the duction of war materiel, as they must in summer recess.