STATE OF BUSINESS: Up&Up

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The spring upswing in business picked up momentum from almost every industry. The Federal Reserve Board's index of industrial production headed for a record-tying 137 (1947-49 = 100), the high point reached in May 1953. Steel output moved up to a rate of 116 million tons yearly, topping even the record rate of 111,600,000 tons set in 1953. Blast furnaces produced at an estimated 92.8% of capacity last week, nearly 40% above the previous year. Nevertheless, for the first time since 1953, a shortage loomed. Consumers complained of shipments as much as 30 days behind schedule.

Some other metals were even scarcer.Washington predicted a shortage of 11,000 tons of copper in April alone.The Government diverted to industry 150 million Ibs. of stockpiled aluminum and another 3,000,000 Ibs. of nickel.

Toppling Records. The automobile output kept rising—and setting new records.Last week production reached an estimated 177,843 cars, the greatest week in automobile history. In March an estimated 786.000 cars were turned out, toppling the previous high mark of 720,100 set in June 1950. First-quarter output of 2,121,000 units surpassed the previous peak of 1,898,783 reached in July-September 1950.

General Motors' President Harlow Curtice announced that it was G.M.'s best first quarter by a whopping 35% over the previous peak (set last year). In the first 20 days of March, even G.M.'s used-car sales hit a record high, 29.4% greater than ever before. Ford, working on "maximum overtime schedules," reported a postwar record week. Chrysler announced that it earned more in igss's first two months than it did in all of 1954 (when it netted $18,516,770). Chrysler output, which had dropped from 20% of the industry total to 13% last year, was back up to 19%.

Heavy construction was running at a rate 60% above the 1954 mark and 3% above 1953. In Washington Housing Administrator Albert Cole told a House subcommittee that 1,300,000 housing units would probably be built this year, just a shade fewer than the 1950 record of 1,396.000.

Rising Orders. Orders were up—all around. They were the highest in 17 months for machine tools, the highest in 15 months for heavy construction, and 16% above a year ago for furniture. Sales were also up. The nation's department-store sales outstripped the same 1954 week by 14%. Wages were at a peak; the average U.S. worker with three dependents took home $69.17 weekly, 55¢ more than ever before in history. In Wall Street the Dow-Jones industrial average, reacting to the news, recorded the second sharpest rise of the year, recovered more than 75% of its mid-March loss.