STATE OF BUSINESS: Still Declining

Industrial production is still dropping. Last week's Federal Reserve Board index showed April production down two points to 126, the lowest in 3½ years and twice the drop that Administration economists expected.

In 1958's first quarter, the Commerce Department reported last week, the gross national product fell by $10.6 billion to an annual rate of $442 billion, the lowest point since the third quarter of 1956. It is expected to decline even more in the current quarter.

But the rate of decline was being braked by increasing signs of resistance in the economy. A rise in April housing starts generated optimism...

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