U.S. Industrial Output Rises
Output of American factories, mines and utilities showed a small increase last month, the Federal Reserve</br></br>The FedÛªs index of in-' dustrial production edged up from 164.1 per cent of the 1957-59 average in May to 164.4 after seasonal adjustment with consumer goods and defense equipment rising and business equipment and materials unchanged.</br></br>Most of this advance came in the second half of 1967, however. Despite concern of Administration analysts that the economy has become overheated, the increase in industrial output over the past six months has been only IV2 per cent (an annual rate of 3 per cent).</br></br>Department reported that manufacturing and trade inventories rose $650 million in May on a seasonally-adjusted basisÛÓabout half the April total but nearly twice the $350 million monthly average of the first quarter.</br></br>But since factory and trade sales rose 2 per cent in May to a record $95.2 billion, the inventory-sales ratio fell from 1.54	in April to 1.51. This compared to 1.57 in May of last year. This is reassuring to economists who fear an economic slowdown if inventories should become excessive.