D.iclinws in Economy Continu

In October the slow decline in industrial production continued, though strikes at iiootes and the Steel Company of Wales may have contributed to making the index of industrial production two points lower for the month instead of one (the seasonal average). In particular, apart from the Welsh strike, output of steel was low continuing the trend of 1961 (latest estimates put steel production as 9% down on 1960). It appears that enginesring production was slightly down and there was a defin ite decline, as compared to 1960, in the volume of exports of engincering goods, Car output in Novuubsr was 2,000 up on October, though half of this increase was accounted for by tho resumption of activity at Rootes. iixports of cars were down ond if the industry's oxpoctation of an increase in home orders in the first few months of this year, as the new models come on the market, is not fulfilled a big cutback in production will take place. As it is home cons-= umption of cars is 10% down on 12 months ago although the industry now has a much higher capacity, The fall of £85 million in the gold reserves (this question will go into in detail in the next issue of the bulletin) plus some new inflationary pressures - the campaign for an increase in the price of steel -— all give a gloomy picture for British capitalism.