STATE OF BUSINESS: Up Another Notch

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U.S. prices are virtually stable. During November, the Bureau of Labor Statistics announced, the cost-of-living index rose only 0.1%, but that was still enough to edge it to an alltime high of 125.6% of the 1947-49 average. But Bureau of Labor Statistics Commissioner Ewan Clague predicted that during the early months of 1960 the index would show little change from the November 1959 level.

For 170,000 workers covered by cost-of-living contracts, the price increase means an automatic hourly wage hike of from i/ to 3/. Despite predicted wage increases of 3% to 4%, economists for the National Industrial Conference Board this week said that "relative price stability" will continue to prevail during 1960. Other predictions:

¶ Oil demand in 1960 is expected to increase more than 5%, said Eugene Holman, chairman of Standard Oil Co. (N.J.).

¶ Telephone and communications expenditures by the Bell System in 1960 will be at least $2¼ billion and "maybe more," said Frederick R. Kappel, president of American Telephone & Telegraph Co.

¶ Cigarette sales in 1960 will reach half a trillion, up 8.5% over the 1959 record of 460 billion units, said Joseph F. Cullman III, president of Philip Morris.