The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
BOJ'.R.D OF GOVERNORS
OF THE
r~ED:sRAL R~?m
STATFJvlEI~T
For release in morning papers,
Friday, Jvne 20, 1941
..
•
SYSTEM
FOR TnE PRESS
The following summary of general
business and financial conditions
in the United States, based upon
statistics for Mey and the first
half of June, will appear in the
July issue of the Federal Reserve
Bulletin ~id in the monthly reviews of the Federal Reserve Banks.
After a slight decline in April industrial activity increased
sharpl:l in May and the first half of June.
Vfuolesale com.'Ilodity prices
shov;ed a further considerable advance and retail prices also increased.
Distribution of commoditit=;S to consumers was iaaintained in large volume.
Production
-
Volmne of industrial output increased sharply
L~
May, follow-
ing a decline in April, and the Board's seasonally adjusted index rose
to 149 per cent of the 1935-1939 average, as compared with JJ+O in April
and 143 in I'.'larch.
..
The decline in April had reflected mainly reduced
output of bituminous coal and automobiles occasioned by shutdov•i!lS accompanying industrial disputes.
These were settled during the month
and in May and the first half of June output in these industries rose
.,
to the high levels prevailing earlier •
~
In a number of other lines activity increased steadily
throughout the spring months, particularly in the machinery, aircraft,
•
R-848
-2-
and shipbuilding industries.
Steel prod·J.ction was maintained at 99
per cent of capacity, except for a short period dm·ing late April and
early May when output was reduced somewhat owing to a shortage of coal.
Output of nonferrous metals also continued near capacit"J; deliveries
of foreign copper in May increased to 49,000 tons, amounting to about
Ol~e-third
..
of total deliveries to domestic consumers.
Toward the end
of the month, as it became apparent that combined militai"J and civilian
need for these metals would soon greatly exceed available supplies, a
•
General Preference Order covering all iron
~1d
steel products was is-
sued by the Priorities DiviRion of the Office of Production
~,lanagement
e.1d in June manc_atory priority controls were established for copper
and zinc.
Textile production rose f'urtb::n· in May, reflecting increased
activity at cotton, wool, and rayon mills.
A continued rise in output
of manufactured food products was likevdse reported and activity in the
chemical and shoe lndustries was maintained at earlier high levels,
although usually there h a considerable decline at this season.
•
Petroleum production increased, and output of &1thracitG also advanced
following some curtailment in April.
..
r::.~on
ore shipments amounted to
11,000,000 tons in May, a new record level and neur the shipping capac-
ity of the present Lake fleet.
Value of construction contract awards rose sharply in Ma:l,
reflecting increases in both public and private construction, according to F. W. Dodge reports.
•
Awards for private residential and
R-848
-3nonresidential building increased. r;;or•c;
t~mn
seasonall;f, and contracts
for defense projects continued in large volume .
.•
Distribution
Distribution of commodities to consumers was sustained at a
h:'..gh level in May.
Department store sales showed a further rise,
while sales at variety stores declined
seasonal amount.
bJ' slightly more than the usual
Retail sales of new automobiles continued at the high
April level and sales of used cars rose further.
Freight-car loadings increased sharply in Hay· 9 reflecting a
marked rise in coal shipments and a further expansion in loadings of
miscellaneous freight.
In the first half of June total loadings were
maintained at the advanced
leve~~
of other recent weeks.
Commodity nrices
Whc·lesale prices of a number of agricultural and industrial
commoditiE;S showed further increases
.•.
f'l~otrl
the aiddle of May to the
middle of June r..nd t!-le general index of the Bureau of Labor Statistics
adve.nced two points to 87 per cent of
t1~1e
to limit price increases was extended
·~o
pally new automobiles,
1926 average.
Federal action
sone consumer goods, princ:L-
and certain cotton yarl1S.
In retail
markets prices of most groups of commodities have advanced, reflecting
• •<
in part increases in wholesale prices E'arlier this year.
Bank credit
Commercial
loc-:~ns
c;.t reporting banks in 101 citif;S continued
to rise during the four ·weeks ending June 11.
•
Bank holdings of United
-4Sto.tes Government securities increased further, chiefJ..y through the
purchase of bills by l!ew York
other leading cities.
C:it~r
banks and of bonds b-y- banks in
As a result of the expansion in loans and in·-
vestments bank deposits continued to increase.
United States Government securii{r prices
Following a rise in the latter part of May Treasury bond
prf.ces declined slight:L;y- 4'1 tne first iwlf of June.
On Jnne 14 the
lS'60-65 bonds vrere 7/8 of a point below the all-tir'le peak in pricGs
of December 10.
Yields on both taxable and tax-exempt 3- to 5-year
notes doclinod slightly from t nc middle of
•
\
•
.•
•
I1~ay
to the middle of June •
@FedFRASER