^^^ WEEKLY MARKET REVIEW MD FAR14 OUTLOOK 



gg By G. L. Jordan '''• 



^ Professor, Agricultural Economics ,' 



University of Illinois / ,, \ 



College of Agriculture v— —- - ,, .U.>\ 



(Prepared October 2) ' 



Business activity has remained about stationary for the past 

 four weeks. Although we have not reached capacity production in all 

 armament industries, largely because of a limitation of supplies of 

 raw materials, yet the point has been reached where further improvement 

 in buying power will depend largely upon increased payrolls resulting 

 from increased wage rates and exports. A government official suggested 

 that the length of the working week be increased from ^0 to ^S hours in 

 order to increase output. This would not have the effect of increasing 

 output 20 per cent, however, because of the fact that at the present 

 time a great deal of overtime is being put in at an increased hourly 

 rate. Steel production has fluctuated around 96 to 97 per cent of 

 capacity, electric power output is increasing seasonally and also 

 widening its spread from last year. It is at the highest point in 

 history. Freight carloadings are also far above 1939 and 19^0, but the . 

 increase over these years is declining somewhat. The seasonal peak in 

 carloadings usually is not reached until mid-October. Automobile pro- 

 duction is below a year ago. Further curtailment is expected. Coal 

 production is holding up at a level considerably above either 1939 or 

 19^. 



Cost of Living . All divisions of the United States Department 

 of Labor index of cost of living have been rising during the past two 

 months. Between July and August clothing rose most, with food a close 

 second, followed in order by fuel, electricity and ice; house furnishings; 

 rent, and miscellaneous. In no case was the rise spectacular, but it 

 indicates a steady upward trend. 



