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HOUS TON 
State Bulletin 
7 August 1938 
Reports from major industrial areas indicate that rising production 
has been accompanied b~ some improvement in employment conditions 
although the available data indicate that this improvement has 
not been uniform. Employment gains in textile centers have been 
particularly evident. 
Textile . activity increases contra- seasonally . Cotton consume tion 
at textile mills increased contra-seasonally during July and" silk 
deliveries recorded a greater than seasonal gain. These advances 
extended the improvement in textile activity in progress since 
-rt-pril . re tween April and. June the seasonally adjusted index of 
textile production compiled Dj' r the Board of Governors of the 
Eederal Reserve System increased seventeen percent and a further 
rise is_ indicated for July. Rayon deliveries which are not in- 
cluded in that index also have increased. The expansion in tex- 
tile output has been a major factor in the rise of the federal 
reserve index of production of non-durable goods during the past 
three months. 
The severe contraction in textile activity in the latter part of 
19o7 and the first four months of this 3 r ear was accompanied by a 
reduction in the inventories of semifinished and finished toxtilo 
goods which had previously accumulated. The renewed buying of 
textiles reflects the rise in consumer purchasing the improvement 
in the inventory situation and the firming of the price structuio. 
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