Show business trend is is e still upward in twelfth district federal reserve bank of san francisco july 27 1939 after declining slightly in the first four months of the year business volumes 1 in the twelfth federal reserve district turned upward in may and were well maintained at the higher levels in june and july measures of industry and trade are generally higher than a year ago but they are still somewhat lower than the best levels recorded late last f fall all outputs of lumber automobiles furniture copper and flour were about the same in june as in may while activity at aircraft plants motion picture studios and petroleum refineries increased crude oil production was reduced further in june under the voluntary curtailment program but rose somewhat in the first half of july factory employment and payrolls which usually are about the same in june as in may in pacific coast states increased further in june this year to a considerable extent this increase was a reflection of continued expansion in activity at aircraft plants new residential building under taken in the district during june increased considerably after allowance for seasonal influences gains being reported in all the principal sections of the district in july however a decline in the turn to page nine business trend is still upward in twelfth district continued from first page index to about the may level is indicated by preliminary figures covering the larger cities of the district this decrease in value of permits in july may be an outgrowth of the fact that in the san francisco bay area and in los angeles new houses have been selling less rapidly in the past two months than earlier in the year even after allowance for the seasonal lull at this time retail trade was maintained during june at about the level to which it had risen in may department part ment store sales were unchanged allowing for seasonal influences fluen ces while sales of apparel stores of groceries and of building materials resisted the decreases decrease customary in those lines in the early summer seasonally adjusted furniture store sales which had increased considerably in recent months were lower in june than in may but remained above the level of any other month since january sales of new automobiles increased further in june following a sharp advance in may but the june increase was not as large as has been custo marym maryin that month cash farm income during may and june continued to exceed that of a year ago owing to markedly higher federal government benefit payments but for the first half of 1939 returns were 12 per cent lower than in the like period of 1937 despite the moderate revival in business activity loans of district city banks for commercial purposes during june and the first three weeks of july continued the decline in evidence since last fall adjusted demand deposits advanced considerably during that period to the highest level on record but this increase was partly offset by a moderate decline in time counts accounts ac |