Business Week Index

The production index was down for the week ended July 4. The unaveraged index

fell 1.5%, to 129, from 131.1. After seasonal adjustment, auto and truck

production declined as the General Motors strike moved into its sixth week.

With 22 assembly plants either completely or partially closed, GM's lost

vehicle production hit 93,500 vehicles last week. The July 4 holiday

contributed to the declines in coal, lumber, electricity, and rail-freight

traffic. Production of steel and crude oil posted sharp increases.

BW production index copyright 1998 Bloomberg L.P.

BusinessWeek Index
PRODUCTION INDICATORS
                                                        LATEST    WEEK      YEARLY
                                                        WEEK      AGO       % CHG
      STEEL (7/11) thous. of net tons                   2,010     1,968#    -2.4
      AUTOS (7/11) units                                37,029    7,523r#    5.9
      TRUCKS (7/11) units                               25,560    25,510r#   84.1
      ELECTRIC POWER (7/11) millions of kilowatt-hrs.   73,856    72,841#    6.3
      CRUDE-OIL REFINING (7/11) thous. of bbl./day      15,601    15,274#    4.6
      COAL (7/4) thous. of net tons                     18,122#   21,041     4.7
      LUMBER (7/4) millions of ft.                      391.3#    485.5      11.9
      RAIL FREIGHT (7/4) billions of ton-miles          23.5#     26.9       1.3
      
      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 (7/10) S&P 500                       1164.33    1146.42    27.4
      CORPORATE BOND YIELD, Aaa (7/10)                  6.49%      6.51%     -9.7
      MONEY SUPPLY, M2 (6/29) billions                  $4,193.4  $4,195.4r   7.0
      INITIAL CLAIMS, UNEMPLOYMENT (7/4) thous.         392        393r       5.1
      MORTGAGE APPLICATIONS, PURCHASE (7/10)            262.5      286.4      23.3
      MORTGAGE APPLICATIONS, REFINANCE (7/10)           1,305.5    1,470.6    162.5
      
      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 (7/15) $/troy oz.                            293.150   292.000    -8.2
      STEEL SCRAP (7/14) #1 heavy, $/ton                130.50    135.50     -9.1
      COPPER (7/10)  cents/lb.                          75.4      76.4       -32.1
      COTTON (7/11) strict low middling                 77.01     77.09       8.7
       1-1/16 in.,  cents/lb.
      OIL (7/14) $/bbl.                                 14.43     13.53      -25.7
      CRB FOODSTUFFS (7/14) 1967=100                    227.69    235.21     -5.0
      CRB RAW INDUSTRIALS (7/14) 1967=100               294.45    294.53     -11.5
      
      Sources: London Wednesday final setting, Chicago market, Metals Week, Memphis 
      market, NYMEX, Commodity Research Bureau
      
      INTEREST RATES
                                                        LATEST    WEEK      YEAR
                                                        WEEK      AGO       AGO
      FEDERAL FUNDS (7/14)                              5.45%     5.46%     5.47%
      COMMERCIAL PAPER (7/14) 3-month                   5.49      5.50      5.57
      CERTIFICATES OF DEPOSIT (7/15) 3-month            5.59      5.58      5.60
      FIXED MORTGAGE (7/10) 30-year                     7.03      7.08      7.67
      ADJUSTABLE MORTGAGE (7/10) one-year               5.78      5.81      5.78
      PRIME (7/10)                                      8.50      8.50      8.50
      
      Sources: Federal Reserve, HSH Associates, Bloomberg Financial Markets
      
      FOREIGN EXCHANGE
                                                        LATEST    WEEK      YEAR
                                                        WEEK      AGO       AGO
      JAPANESE YEN (7/15)                               140.67    139.45    116.10
      GERMAN MARK (7/15)                                1.80      1.82      1.80
      BRITISH POUND (7/15)                              1.63      1.64      1.67
      FRENCH FRANC (7/15)                               6.04      6.09      6.07
      ITALIAN LIRA (7/15)                               1776.2    1790.5    1745.8
      CANADIAN DOLLAR (7/15)                            1.49      1.47      1.37
      MEXICAN PESO (7/15)3                              8.850     8.920     7.916
      TRADE-WEIGHTED DOLLAR INDEX (7/15)                114.0     113.9     104.9
      
      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.
      
      #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