STATE OF BUSINESS: Bill of Health

Two of the major buttresses of a healthy and growing economy—industrial production and personal income—last week set new records. The Federal Reserve Board reported that U.S. industrial production in May climbed to a record high of 152% of the 1947-49 average, two points above the month before, and six points above the pre-recession high. In the nation’s mines, mills and factories, broad production gains were chalked up in farm machinery, trucks and autos, building materials, metals, clothing, textiles, chemicals and paper. Auto production in U.S. plants was up 3.6% over the week before to 131,584 cars, a pace that will send U.S. car output to its greatest June total in four years; truck volume rose to the best June level in eight years. Freight carloadings climbed 13.9% over the same week last year to reach the highest level in more than 19 months.

The Commerce Department reported that personal income rose to a record annual rate of $376.2 billion in May, $3 billion above the month before. The Labor Department added that spendable earnings (income after federal taxes) also reached a record in May of $81.03 a week for a factory worker with three dependents. The department also reported a May rise of 0.1% in the consumer price index to a record 124% of the 1947-49 price average. But Bureau Price Chief H. E. Riley said that the change was an expected seasonal rise that has taken place every year but one since 1947. Though further small rises may take place in the next few months, harvests are expected to lower food prices in the fall.