Servicing Retoil Lumber Deolers ond Wholesole Distribution Yords ONLY TnEl oMtA Lutlfit BEi R

Lumber Deoler Sqles Up 32 o/o in Gluofier

Sacramento-Personal income of California residents, adjusted to an annual rate, exceeded $39 billion in the second quarter, being about $3.1 billion above the second quarter of last year. During the 12 months ended June 30, 1959, consumer prices rose about one and one-half percent and population in California is estimated to have increased over one' half million.

Increases in durable goods sales were the primary factor in the expansion of taxable transactions in the second quarter of this year. Sales of new car dealers rose 34/a, those of lumber and buildit-rg materials dealers were up 32/o and sales of household appliance dealers, plumbing and electrical suppliers, and household and home furnishings sales rose between 2l and.25Vo.

It is interesting to note that, during the quarter, over $1 billion was spent in the purchase and maintenance of uew and used motor vehicles. The taxable transactions of new and used motor-vehicle dealers, automotive supplies and parts dealers, service stations, and garages accounted for over 18 cents of each dollar spent by consumers on all taxable items purchased in the second quarter. In addition, many other dollar outlays expended on transportation are not subject to sales tax, such as purchases of gasoline, insurance, parking, and labor costs involved in repair, work.

lumber Building Mqteriols Lecrd in Heolrhy, Upword Wholesole Trend

The Bureau of the Census reports that August sales by merchant wholesalers were 8/o higher than August sales in 1958, but were 4/o below this July. The lumber and construction materials field showed a decided lead over the trend, up 17/o over August 1958, but lined up with the rest of the industries in being down 4/o from July. The preliminary report shows that lumber and associated materials have a healthy 3l/o lead over a year ago for total sales durir-rg the first eight months of the year.

Lumber inventories were down 5/o f.rom July 1959, but up 9% from August 1958.

Swing Housing Bill on Third Try

President Eisenhower has signed the new FHA billiondollar housing bill raising the interest rates for insured rnortgages to Ssl/o and lowering down payments on homes.

The new interest rate is expected to enable buyers to shop for their mortgages by attracting more investors into the mortgage field.

l'he new bill also raises the maximum amount of FHAinsured mortgages from $20,000 to $22,500 on single-family hornes and provides for an extension of the FHA home-loan improvement program to Oct. l, 1960.