STATE OF BUSINESS: Two Points Ahead

Despite a dip in auto production, U.S. industrial production is on the upgrade. Last week the Federal Reserve Board reported that September industrial production had climbed two points over August, v. a one-point decline for the comparable period of 1953. Other signs of upturn: ¶ Steel output at Pittsburgh rose to an estimated 74% of capacity last week, up from 70.6% the previous week, and the highest level since April. Chicago mills went to 73.8% from 70.3%, and Youngstown operations rose 12%, to 72%. ¶ Construction awards of all types rose to a record $1.8 billion in September, up 15% from the previous month and 4% from a year ago.

¶ New car stocks dropped to 488,000 units, down 10% from a year ago, and 40% under the record high of last May. Total business inventories dropped below the year-ago level for the first time this year.

¶ New claims for jobless benefits declined to 240,000, the lowest level in a year.