PRODUCTION INDEX

The production index edged up slightly during the week of July 27. Before

calculation of the four-week moving average, the index increased by a stronger

1%, to 133.8 from 132.5. Seasonally adjusted output of trucks and autos bounced

back as plants reopened after the yearly shutdown for model changeovers.

Electric power output declined in the latest week.

The leading index will be unavailable for an indefinite period of time.

BW production index copyright 1996 Bloomberg L.P.

PRODUCTION INDICATORS
      
                                                     LATEST     WEEK      YEARLY
                                                     WEEK       AGO%       CHG
      STEEL (8/3) thous. of net tons                 2,022      1,964#     6.1
      AUTOS (8/3) units                              122,282    123,317r#  6.3
      TRUCKS (8/3) units                             105,624    107,044r#  0.0
      ELECTRIC POWER
       (8/3) millions of kilowatt-hrs.               NA         72,804#    NA
      CRUDE-OIL REFINING
       (8/3) thous. of bbl./day                      14,299     14,092#   -1.1
      COAL (7/27) thous. of net tons                 19,525#    18,982    -0.8
      PAPERBOARD (7/27) thous. of tons               NA#        920.0      NA
      PAPER (7/27) thous. of tons                    NA#        797.0      NA
      LUMBER (7/27) millions of ft.                  486.9#     471.0      4.7
      RAIL FREIGHT (7/27) billions of ton-miles      26.4#      25.8       4.3
      
      Sources: American Iron & Steel Institute, Ward's Automotive Reports, Edison 
      Electric Institute, American Petroleum Institute, Energy Dept., American Forest 
      & Paper Association, WWPA1, SFPA2, Association of American Railroads
      
      LEADING INDICATORS
      
                                                    LATEST     WEEK       YEARLY
                                                     WEEK       AGO        % CHG
      STOCK PRICES (8/2) S&P 500                    662.49     635.90     18.4
      CORPORATE BOND YIELD, Aaa (8/2)               7.73%      7.81%       0.5
      INDUSTRIAL MATERIALS PRICES (8/2)             107.3      106.8      -5.6
      BUSINESS FAILURES (7/26)                      NA         NA          NA
      REAL ESTATE LOANS (7/17) billions            $521.9     $521.8       6.3
      MONEY SUPPLY, M2 (7/22) billions              NA         NA          NA
      INITIAL CLAIMS, UNEMPLOYMENT (7/27) thous.    292        321r       -20.9
      
      Sources: Standard & Poor's, Moody's, Journal of Commerce (index: 1990=100), Dun 
      & Bradstreet (failures of large companies), Federal Reserve, Labor Dept.
      
      PRICES
      
                                         LATEST       WEEK       YEARLY
                                         WEEK         AGO        % CHG
      GOLD (8/7) $/troy oz.              388.000      385.300    1.0
      STEEL SCRAP (8/6) #1 heavy, $/ton  134.00       133.50    -6.0
      COPPER (8/3)  cents/lb.            96.2         96.5      -31.8
      ALUMINUM (8/3)  cents/lb.          71.0         70.0      -18.4
      COTTON (8/3) strict low middling
       1-1/16 in.,  cents/lb.            76.95        77.01     -7.8
      OIL (8/6) $/bbl.                   21.46        21.43      20.0
      
      Sources: London Wednesday final setting, Chicago market, Metals Week, Memphis 
      market, NYMEX
      
      FOREIGN EXCHANGE
                                        LATEST          WEEK     YEAR
                                         WEEK           AGO      AGO
      JAPANESE YEN (8/10)               107.79          106.77   93.65
      GERMAN MARK (8/10)                1.48            1.47     1.43
      BRITISH POUND (8/10)              1.54            1.56     1.58
      FRENCH FRANC (8/10)               5.06            5.00     4.92
      ITALIAN LIRA (8/10)               1519.5          1519.2   1588.3
      CANADIAN DOLLAR (8/10)            1.37            1.37     1.36
      MEXICAN PESO (8/10)*              7.494           7.576    6.150
      
      Sources: Major New York banks. Currencies expressed in units per U.S. dollar, 
      except for British pound in dollars
      
      INTEREST RATES
      
                                        LATEST          WEEK     YEAR
                                         WEEK           AGO       AGO
      FEDERAL FUNDS (8/6)                5.10%          5.33%     5.73%
      COMMERCIAL PAPER (8/7) 3-month     5.43           5.54      5.80
      CERTIFICATES OF DEPOSIT (8/7)
       3-month                           5.40           5.55      5.75
      FIXED MORTGAGE (8/2) 30-year       8.41           8.40      8.04
      ADJUSTABLE MORTGAGE (8/2) one-year 6.14           6.10      5.90
      PRIME (8/6)                        8.25           8.25      8.75
      
      Sources: Federal Reserve, HSH Associates, Bloomberg Financial Markets
      
      #Raw data in the production indicators are seasonally adjusted in computing the 
      BW index (chart); other components (estimated and not listed) include machinery 
      and defense equipment. 1=Western Wood Products Assn. 2=Southern Forest Products 
      Assn. *=Free market value NA=Not available r=revised NM=Not meaningful
      
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