An Editorial Building ls Biggest Aid fo Our Economy

In a recent review of business conditions as measured by the professional purchasing agents of the nation, the National Association of Purchasing Agents reports that it asked a special question concerning home construction of more than one hundred localities in the United States. The replies indicate a strong market for homes in nearly all of those areas, and very few reported a decline in building operations.

Said the survey: "Generally the lower-priced new homes are selling fast. The medium and higher cost homes are moving well, though buyers have become more selective."

The reports indicated that for the rest of the year 1954, at least, the home building business looks fine.

The governor of one of the major federal reserve districts, Chicago, is credited with saying that the construction business is playing, and will continue to play, a major part in the present strong economic situation of the nation.

The other day a bright-eyed lumberman sat in a big lumber convention, and heard a speaker-not a lumbermanmention "the recent business decline." He got up and walked out of the convention hall, and to a group gathered about him outside, he asked: "Where do these birds get this 'business decline' talk? There has certainly been none in any part of the lumber business that I have seen or heard of. The lumber people have never had it so good, so far as f can see. I know f have, and so have all the others that I know of."

We have said in these columns many times of late just what this lumberman did. Where does all this decline talk originate? Certainly the lumber and building industry has felt no sign of it. Yet here was a speaker, making a patriotic address, mentioning the "business decline." Too bad someone couldn't have interrupted him to ask for his authority. If there really comes a business decline, we believe the lumber industry will feel it first. Our conclusion, therefore, is that these "business decline" talkers and writers are simply business illiterates.

1954 Building Totqls Ahecrd of | 953

Washington-Public and private outlays for neu,' construction of all kinds amounted to $3,600.000,0C0 in September, the same as August, but 8% above September 1,953, according to the Commerce and Labor departments. For the first nine n.ronths of 1954, construction spending reached a new peak of $27,400,000,000. up 4o/o over the previous high set in the same months of 1953.

Administration economists called the construction ind.ustry the "brightest spot" in the economlr. "The September report certainly shor,vs that the bright star hasn't begun to dim," said one Commerce Department expert.