Rising Barometer

One of the best barometers of current business is the construction industry, and last week the construction barometer was still rising. The Departments of Commerce and Labor reported August construction at $3.6 billion, an alltime high, up 3% from July (the previous record month) and up a full 8% over August 1953. In the first eight months of 1954, construction totaled $23.7 billion, another alltime record, 4% above the comparable period last year. Construction is still going up on a solid foundation, e.g., private residences, highway building and public-utility improvements.

There were other hints last week of a continuing boom for business. With the auto industry getting ready to buy steel for 1955 models, steel production is beginning to pick up, as steelmen had predicted it would, rose to 64.8% of capacity from 63.5% the week before. Jobs were becoming more plentiful, too. For the sixth consecutive week the Labor Department reported a decline in new claims for unemployment benefits. Business failures were down to 184, the year's new low; department-store sales and installment buying were up.

Even the stock market, after its 12-month rise, seemed full of steam. At the start of the week, the market had its sharpest break in three months, when the Dow-Jones industrial average tumbled almost nine points in two days. But next day the market surged back, and by week's end industrials were back to 343.10, a loss of only 1.25 points for the week.

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