The Economic Downturn of Mid-1953: A Review of Industrial Production and Income

Mid-1953 marked a significant downturn in the economy, characterized by reductions in employment and hours of work in key industries such as manufacturing, mining, and transportation. This decline had a ripple effect on personal income, which decreased by 2% compared to previous years.

Industrial production also took a hit during this period, with output falling below the mid-1953 peak. Although it was still above the level prevailing before the upsurge in 1952, the steady decline in industrial activity was attributed mainly to continued curtailment in ordnance output and declines in production of iron and steel and goods.

One area that bucked this trend was nondurable goods production, which remained stable. However, durable goods production was not as fortunate, with a significant decline in goods such as household appliances and furniture. This was reflected in the reduced demand for these items, resulting in lower consumer takings.

On a more positive note, household durable goods saw an increase in sales during this period, albeit moderately from the reduced rates of late 1953. Automobile markets also became more active, with auto sales only slightly below last year's high. Output of passenger automobiles and major components did slow down towards the end of summer but remained steady overall.

The decline in industrial activity was attributed to various factors, including continued curtailment in ordnance output and declines in production of iron and steel and goods. Despite this downturn, consumer takings of household durable goods approximated the large volume of a year ago. The full text of this article can be found 'Joplin 2.12.16 free'.