AUGUST, 1932 SURVEY OF CURRENT BUSINESS UNITED STATES DEPARTMENT OF COMMERCE BUREAU OF FOREIGN AND DOMESTIC COMMERCE WASHINGTON VOLUME 12 NUMBER 8 EXPLANATORY The Survey of Current Business is designed to present the early issues of the Survey and, in the Record Book of each month the available statistical measurements of Business Statistics, data on textiles, metals and economic activity, together with the necessary analyt- machinery, fuels, automobiles, and rubber are carried ical comment, which will enable readers to obtain a back to 1909 on a monthly basis, where available. comprehensive picture of the business situation. Cer- These record books should not be used for data later tain of the more important series are presented in than 1922, and the monthly data should be checked graphic form so that the trend of the major indicators against the annual averages given in the 1932 Annual can be readily determined. In order to get the monthly Supplement to assure the continuity of the series and to statistics to subscribers more quickly, and to bring the obtain any necessary corrections. The three parts of material up to date with current weekly statistics, a the Record Book may be obtained from the Superin- 4-page supplement is furnished each week as part of the tendent of Documents, Government Printing Office, threefold service of the Survey. Washington, D. C., for 10 cents each, or 30 cents for Over 2,100 series of data, gathered from more than 200 the set. organizations, are presented regularly each month. INDEX NUMBERS Most of the statistics are not compiled by the Survey, To facilitate comparisons of the movement of impor- but represent a careful selection of material available tant series over a period of time, index numbers have from all sources. The chief function of this publication been used in numerous instances throughout the is to bring together in usable form the statistics which, Survey. In brief, these index numbers simply express if published at all, are scattered in hundreds of different the current movement with relation to a fixed base— publications and reports, and to aid in the proper usually the monthly average of the years 1923-1925. analysis and interpretation of the figures. The Survey The construction of these index numbers is described in of Current Business compiles the indexes of domestic brief in the annual supplement. and world stocks, new and unfilled orders, agricultural, livestock and forest products marketings, foreign trade, SEASONAL ADJUSTMENT OF INDEXES five and ten cent store sales, and department store sales Seasonal variations are found in most economic by districts. series for which monthly statistics are obtainable. SOURCES OF DATA Consumption and production of commodities, foreign The sources and inclusiveness of the data in the table trade, retail trade, employment, construction, railroad "" Monthly Business Statistics " will be found in the freight traffic, and many other types of data are marked explanatory footnotes covering each series in the 1932 by seasonal swings repeated with minor variations year Annual Supplement to the Survey. The data given in after year. These are definitely periodic in character these footnotes should always be kept in mind when within a 12-month period. In cases where an adjust- utilizing the statistics carried in each monthly number. ment is noted for a series carried in the Survey, the Sources of the weekly statistics are given on page 20 index has been corrected for the number of working or of the July, 1932, issue of the Survey, and in somewhat business days in the various months, and then adjusted more detail on page 4 of the February 5, 1931, issue of for seasonal variation. The index figures thereby the Weekly Supplement to the Survey. become comparable throughout the series. HISTORICAL DATA METHODS OF USE In the 1932 Annual Supplement to the Survey of Methods of using and interpreting current business Current Business, the statistical series presented cur- statistics have been collected by the Department of rently are carried back on a monthly basis to 1923, and Commerce from man}?' business concerns and are on a yearly basis to 1913, where available. The statistics described in a booklet entitled "How to Use Current therein have been carefully reviewed and revised and Business Statistics," together with methods of col- supersede those carried in the 1931 Annual Supplement lecting statistics. This booklet may be obtained from as well as those in the semiannual numbers issued prior the Superintendent of Documents, Government Print- to 1931. Monthly data prior to 1923 will be found in ing Office, Washington, D. C., for 15 cents per copy. Volume 12 AUGUST, 1932 Number 8 WEEKLY DATA THROUGH JULY 23, 1932 MONTHLY DATA THROUGH JUNE SURVEY OF CURRENT BUSINESS PUBLISHED BY UNITED STATES DEPARTMENT OF COMMERCE BUREAU OF FOREIGN AND DOMESTIC COMMERCE WASHINGTON CONTENTS SUMMARIES AND CHARTS STATISTICAL DATA—Continued Page Page Business indicators 2 Monthly business statistics: Business situation summarized 3 Business indexes 22 Comparison of principal data, 1928 to 1932 4 Commodity prices 23 Commodity prices 5 Construction and real estate 24 Domestic trade 6 Domestic trade 25 Employment 7 Employment conditions and wages 27 Finance 30 Finance: Foreign trade 34 Credit and banking 8 Transportation and communications 34 Security and money markets 9 Statistics on individual industries: Foreign trade 10 Chemicals and allied products 36 Real estate and construction 11 Electric power and gas 38 Transportation 12 Foodstuffs and tobacco 39 Fuels and by-products 42 Survey of individual industries: Leather and products 43 Automobiles and rubber 13 Lumber and manufactures 44 Chemicals 14 Metals and manufactures: Farm and food products 15 Iron and steel 45 Forest products 16 Machinery and apparatus 48 Iron and steel 17 Nonferrous metals and products 48 Textiles 18 Paper and printing 50 Miscellaneous industries 19 Rubber and products 51 Stone, clay, and glass products 52 Textile products 52 STATISTICAL DATA Transportation equipment 54 Internal revenue receipts, fiscal years 1931 and 1932 20 Canadian statistics 55 Weekly business statistics 21 Index Inside back cover Subscription price of the SURVEY OF CURRENT BUSINESS is £1.50 a year which includes the 12 monthly numbers, the annual supplement and the 52 weekly supplements. Foreign subscriptions without weekly supplements, 32.50. Make remittances only to Superintendent of Documents, Washington, D. C, by postal money order, express order, or New York draft. Currency at sender's risk. Postage stamps or foreign money not accepted 131187—32 1 SURVEY OF CURRENT BUSINESS August, 1932 Business Indicators 1923-1925 = 100 INDUSTRIAL PRODUCTION INDUSTRIAL PRODUCTION 160 160 MANUFACTURES (ADJUSTED) * •MINERALS (ADJUSTED) * 100 40 FACTORY EMPLOYMENT FACTORY PAYROLLS 160 TOTAL FREIGHT CAR LOADINGS FREIGHT CAR LOADINGS L.C.L. 160 160 I I I I I I I I I Mill! I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I DEPARTMENT STORE SALES WHOLESALE PRICES aoo 160 VALUE OF EXPORTS 200 VALUE OF IMPORTS sUNAL JUSTED 100 ^^uV^^ "-N-v 1 nl , i it in mi i BANK DEBITS OUTSIDE NEW YORK CITY BUILDING CONTRACT^S AWARDED 2OO 200 -UNADJUSTED 100 1 1 1 1 1 h 1 1 1 1 1928 1929 1930 193! 1932 1928 1929 1930 1931 1932 0 ADJUSTED FOR SEASONAL VARIATION August, 1932 [SURVEY OF CURRENT BUSINESS Business Situation Summarized ALTHOUGH business activity continued to recede were largely responsible for the drop in the combined -LJL during June and in the early part of the current index. In the first half of 1932 industrial produc- month, several recent constructive developments tion has declined 24 per cent below the correspond- have contributed to an improvement in sentiment. ing period of 1931, and was only two-thirds of the Among the latter are included the cessation of gold output of the base period 1923-1925. The decline so exports, and a return flow at a moderate rate; a general far this year has been relatively more rapid than in. strengthening of the bond market which has resulted either of the two preceding years. in a substantial improvement in prices since early Freight-car loadings continue to reflect the ex- June; the halting of urgent liquidation in the stock tremely low rate of industrial activity. A further market; and an advance in prices of a number of decline has occurred in June and the first half of important commodities resulting in a forward move- July, although the drop has not been as rapid as in ment in the composite price indexes over the past May. Traffic has receded so far this year by ap- several weeks. Building contracts awarded during proximately the same percentage as the drop in the first half of July also revealed a spurt, following industrial production. The movement of 1. c. 1. the decline in June. Industrial production, however, merchandise declined by the usual seasonal amount, has declined by somewhat more than the normal sea- reflecting the summer recession in wholesale and sonal amount. During the first half of July resump- retail trade. Department stores sales have receded tion of activity after the holiday resulted in some rapidly from the spring peak of April, and are currently pick-up, but the adjusted weekly indicators did not about one-fourth below a year ago. advance during this period. The declining trend in employment and pay rolls During June the adjusted index of industrial has not been arrested. Factory employment, after production declined one point, the decrease being adjustment, was down 3.5 per cent in June, while more pronounced in mining than in manufacturing. pay rolls w^ere off 7.8 per cent to only 43 per cent of The adjusted index of manufacturing activity showed the 1923-1925 average.