STATE OF BUSINESS: Better & Better

The April surge in employment (see NATIONAL AFFAIRS) was the result of a powerful surge in the economy. Items:

¶ Automakers sold 503,890 cars in April —first half-million month since June 1957 —and they produced 578,825, the most since 1955. More important, the production rate was gaining speed, advanced 13^% from late April to early May, and was 74% ahead of last year's pace.

¶ Department stores rang up 8% more sales in the week ending May 2 than last year. Sears, Roebuck alone reported April sales up 12%.

¶ Railroads loaded 674,123 cars in May's first week, highest since last November and 26% above last year's total.

¶ Steelmakers poured at double last year's rate, were producing at 94% capacity. Oil production bubbled 14% above the spring 1958 level, and even Old King Coal staged a comeback. Soft coal output was up 29% at 8,300,000 tons for the week.

There was one index on the downgrade. Happily, it was for consumer food prices. Dun & Bradstreet's shopping basket of 31 basic foods (one pound of each) dropped to $6.13 wholesale, off 2¢ for the week and 44¢ below last year's recession level.