Spring Rise

Since the U.S. economy came through the first quarter full of vigor, expressions of doubt about its health for the rest of 1957 all but disappeared last week. The Department of Commerce reported that personal income reached a record annual rate of $336.7 billion in February, forecast even fatter pay envelopes ahead for the nation's workers. Starting off the seasonal spring rise, employment rose to 63,865,000 to set a record for March. Retail sales were holding firm, and production was expected to hold its record 1956 pace.

Last week it was also plain that spring had belatedly arrived for the auto industry--though not quite the sort of spring that was hoped for. Ward's Reports said that auto sales in the last ten days of March ran 13.5% over the previous ten days and boosted March sales over the half-million mark for the first time since June. Sales performances of individual lines were impressive: Buick sales were up 32% in the last ten days, Ford up 15%, Oldsmobile up 10%. March sales of lagging General Motors were the best since last fall and 21% better than G.M.'s own sales experts had predicted. Even hard-pressed American Motors was able to announce a 30.5% rise in sales of its Rambler.

Nonetheless, auto manufacturers and dealers last week faced the fact that while 1957 looks like a better year for sales than disappointing 1956. there probably will be no robust spring upsurge as in previous years; instead they see a solid steady rise.

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