STATE OF BUSINESS: Strong Base

Underscoring the strength of the nation's business recovery last week was a Department of Commerce report on manufacturers' new orders, the key to future industrial output. Orders rose more than seasonally in September, and for the first time exceeded a comparable 1957 month. Manufacturers' sales, especially durables, were still slowed down by new model changes and by cautious buying for inventories by distributors and retailers. But with retail sales on the rise, merchants expected the gap between increased manufacturers' new orders and sales to be only temporary (see chart). Other recovery items:

¶ Construction contracts in September rose 26% over September 1957, to a new monthly high, reported F. W. Dodge Corp., indicating a rising level of building activity in the months ahead.

¶ U.S. copper output was raised 36%, with Kennecott mines going on a seven-day week to meet the growing recovery demand and offset the shortage caused by strikes in U.S., Rhodesia, Canada. The price rose to a 20-month high of 31.3¢ on the London market.

¶ The Pennsylvania Railroad, after paying its first dividend this year, canceled a 10% pay cut for its 633 officials earning above $10,000 yearly. The line also gave a 10% pay hike to nonunion workers making less than $10,000, plus an 8¢ hourly boost to all union workers.

¶ Detroit was back on a six-day week to make up time lost by strikes, and some automakers expected to work at peak output for at least three months. Output this week is scheduled at 107,000 cars, highest of the year. Ford has already sold 100,000 new models, more than 10% of its 1958 model sales. Plymouth is 100,000 cars behind dealer orders. Chevrolet will not be able to catch up on orders for at least two months. American Motors Corp. broke all its previous production records, has nudged out Pontiac to become No. 6 carmaker with 159,000 cars produced so far this year.