Quickening Recovery

Washington's statisticians released still more figures showing that the economy's rebound from recession, already sharper than in any other postwar upturn, is picking up speed. Items:P: Industrial production for July stood at 133 on the Federal Reserve's index, up three points since June and seven points higher than the recession low of 126 in April (see chart). At this rate, say economists, the pre-recession level of 145 in August 1957 may well be topped before year's end.

P: Personal income rose to an annual rate of $354.5 billion in July, highest in history. The new level was $2.5 billion higher than in June and $2.4 billion higher than the previous record of $352.1 billion, also set in August 1957. Main reasons for the jump: a $1 billion rise in private-industry payrolls, plus another $1 billion increase in the federal payroll. P: Housing starts rose to an annual rate of almost 1,160,000 in July, 14% higher than the rate in July 1957 and the highest in 2 1/2 years. FHA, VA and conventionally financed housing all shared in the increase, which was particularly noticeable in the North Central and Western states.

P: Corporate dividends for seven months ending in July amounted to $6,271,000,-000, a decline of less than 1% from $6,312,500,000 paid out in the same period of 1957, despite all the smoke and fire over reduced earnings. P: Department store sales for July climbed to 140% of the 1947-49 average, up from 133% in June. At the new level sales are only four points below the alltime record set a year ago this month. P: Steel production was scheduled to rise for the sixth consecutive week to 61.4% of capacity, reflecting an earlier-than-expected fall pickup in orders.

The one big disappointment last week was employment. Though July employment rose to 65,179,000, an increase of 198,000 over June, and unemployment fell to 5,294,000, a drop of 143,000 from June, both changes fell short of the normal improvement for this time of the year. Business was certainly speeding up, but there were still areas where part-time operations had to get back on a fulltime basis before furloughed workers could be called back.

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