PRODUCTION INDEX

The production index fell for the fourth consecutive week. The unaveraged

index was also down, to 134.9 from 135.3. After seasonal adjustment, steel

production dropped 2.5%, and the capacity utilization rate was only 78.3%--the

lowest it has been all year. Electricity was down 6%, with major weekly

decreases in available energy in eight out of the nine geographic regions

tabulated. Coal output was also down. On the upside, autos, trucks, oil,

lumber, and rail posted increases.

BW production index copyright 1998 Bloomberg L.P.

PRODUCTION INDICATORS
                                                        LATEST    WEEK        YEARLY
                                                        WEEK      AGO         % CHG
      STEEL (10/17) thous. of net tons                  2,011     1,893#      -7.2
      AUTOS (10/17) units                               125,816   126,646r#   -0.4
      TRUCKS (10/17) units                              140,452   145,974r#   -2.5
      ELECTRIC POWER (10/17) millions of kilowatt-hrs.  61,583    63,058#      1.7
      CRUDE-OIL REFINING (10/17) thous. of bbl./day     13,454    13,558#     -9.4
      COAL (10/10) thous. of net tons                   21,395#   22,305       2.1
      LUMBER (10/10) millions of ft.                    500.3#    489.9        6.3
      RAIL FREIGHT (10/10) billions of ton-miles        28.2#     27.7         2.2
      
      Sources: American Iron & Steel Institute, Ward's Automotive Reports, Edison 
      Electric Institute, American Petroleum Institute, Energy Dept., WWPA1, SFPA2, 
      Association of American Railroads
      
      LEADING INDICATORS
                                                   LATEST      WEEK        YEARLY
                                                   WEEK        AGO         % CHG
      STOCK PRICES (10/16) S&P 500                 1056.42     984.39      11.9
      CORPORATE BOND YIELD, Aaa (10/16)            6.40%       6.55%       -9.2
      MONEY SUPPLY, M2 (10/5) billions             $4,316.3    $4,303.6r    8.3
      INITIAL CLAIMS, UNEMPLOYMENT (10/9) thous.   303         301r        -1.9
      MORTGAGE APPLICATIONS, PURCHASE (10/16)      296.9       343.1       42.9
      MORTGAGE APPLICATIONS, REFINANCE (10/16)     2,507.0     4,389.1    256.6
      
      Sources: Standard & Poor's, Moody's, Federal Reserve, Labor Dept., Mortgage 
      Bankers Assn. (Index: March 16, 1990=100)
      
      PRICES
                                                LATEST     WEEK       YEARLY
                                                WEEK       AGO        % CHG
      GOLD (10/21) $/troy oz.                 295.250    295.300       -8.4
      STEEL SCRAP (10/20) #1 heavy, $/ton       85.50      85.50      -38.7
      COPPER (10/16)  cents/lb.                 76.5       75.5       -21.9
      ALUMINUM (10/16)  cents/lb.               64.3       63.5       -17.6
      COTTON (10/16) strict low
       middling 1-1/16 in.,  cents/lb.          67.58      70.85       -2.7
      OIL (10/20) $/bbl.                        13.18      14.02      -35.9
      CRB FOODSTUFFS (10/20) 1967=100          223.60     224.10       -9.7
      CRB RAW INDUSTRIALS (10/20) 1967=100     275.20     275.10      -17.4
      
      Sources: London Wednesday final setting, Chicago market, Metals Week, Memphis 
      market, NYMEX, Commodity Research Bureau
      
      FOREIGN EXCHANGE
                                              LATEST      WEEK       YEAR
                                              WEEK        AGO        AGO
      JAPANESE YEN (10/21)                    116.95      119.34     120.72
      GERMAN MARK (10/21)                     1.64        1.64       1.78
      BRITISH POUND (10/21)                   1.70        1.71       1.63
      FRENCH FRANC (10/21)                    5.51        5.50       5.98
      ITALIAN LIRA (10/21)                    1626.0      1623.5     1740.5
      CANADIAN DOLLAR (10/21)                 1.55        1.55       1.39
      MEXICAN PESO (10/21)3                   10.035      10.185     7.716
      TRADE-WEIGHTED DOLLAR INDEX (10/21)     106.0       106.3      106.3
      
      Sources: Major New York banks. Currencies expressed in units per U.S. dollar, 
      except for British pound in dollars. Trade-weighted dollar via J.P. Morgan.
      
      INTEREST RATES
                                                  LATEST    WEEK     YEAR
                                                  WEEK      AGO      AGO
      FEDERAL FUNDS (10/20)                       4.80%     5.40%    5.53%
      COMMERCIAL PAPER (10/20) 3-month            5.01      5.11     5.59
      CERTIFICATES OF DEPOSIT (10/21) 3-month     5.13      5.30     5.69
      FIXED MORTGAGE (10/16) 30-year              7.02      6.70     7.48
      ADJUSTABLE MORTGAGE (10/16) one-year        5.56      5.53     5.67
      PRIME (10/16)                               8.00      8.25     8.50
      
      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.    3=Free market value   NA=Not available   r=revised   
      NM=Not meaningful
      
      
      
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