Compass Pointers

Few businessmen watch the barometer of the U.S. economy more closely than industry’s own purchasing agents. Their job is not to tell what has happened but what will happen to prices, consumer demand and production. In Cleveland last week, 3,000 members of the National Association of Purchasing Agents, meeting for their annual convention, took readings from all points of the compass on the future economic weather of the U.S.

From New England, Bigelow-Sanford Carpet Co. Inc.’s William R. Murray reported: “Our industrial production index for March showed an increase of more than twice that of the nation . . . Demand for all goods is high, resulting in a good rate of production and employment.”

From Chicago, Hotpoint Inc.’s Harold A. Berry reported: “Midwest business looks good throughout 1950 with signs pointing for its continuance into 1951.”

From the Pacific Coast, Union Pacific Railroad Co.’s Charles A. Keeble reported: lumber, fishing, steel, paper and tourist business were all “at full capacity and expected to remain so for the balance of the year.”

From the South, Champion Paper & Fiber Co.’s Charles W. Dabney Jr. reported that the South’s second-half business would outstrip 1950’s first six months. “Employment appears to have been stabilized.”

All this optimism was confirmed last week by the still growing boom. In May, the Federal Reserve Board’s index of industrial production soared to 193, within a whisper of 1948’s postwar high of 195. Said FRB: production would probably set a new record in June.