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Information bulletin
No. 146 (October 19, 1948)

Industrial index continues to rise,   p. 31 PDF (563.5 KB)

Page 31

zonal Area is rising towards the
1936 level. The continued upward rise
is shown by the new index of the
volume of industrial production for
the Bizonal Area that has been con-
structed by the German Bizonal De-
partment of Economics at the request
of, and in cooperation with Military
Government. The new index, which in
August became official for the Bizonal
Area, is constructed on a truly bizonal
The provisional index, used since
December 1947, was a combination of
the existing indexes for the US and
British Zones of Occupation. While
these bizonal indexes were not
strictly comparable, the methods used
in constructing them were similar
enough to permit their combination
to secure a provisional index which
was used pending the construction of
the new index from data on a bizonal
Preliminary figures for August
showed that the new index stood at
67 percent of 1936, as compared with
66 for the old index. Both indexes
indicated an increase of eight percent
over July, for which the revised index
showed 62 and the old index 61 (re-
vised). On the average for the year
August 1947-July 1948, the new
index was 4.6 percent higher than
the old.
The general method used in con-
structing the new index is the same
as that previously used for both zonal
indexes. Production of each important
item, expressed in quantity units, in
the current month is compared with
the monthly average production of
the same item in 1936.
The items are arranged in 19 in-
dustry groups for the most part in
accordance with the established Ger-
man industrial classification. Indexes
for the groups are made- by combin-
ing the items according to the relative
importance of their 1936 production
in the groups. The industry groups
are weighted together on the basis
of value added by manufacture in
each group in 1936.
For a few groups, production data
for August were not available, but
these groups have been estimated on
the basis of value of production de-
flated for price changes, employment
adjusted for changes in labor effi-
cience, and consumption of iron and
steel in the industry.
B OTH THE NEW and old indexes
included mining and production of
electricity and gas but excluded con-
struction (other than iron and steel
construction) and food processing,
for which no adequate data were
available. With the above exclusions,
virtually every industry group is re-
presented in the new index either by
production of important individual
items or by a substitute series. The
revised index also incorporated nu-
merous corrections and revisions in
base-period figures and current pro-
duction data.
For the purposes of comparison,
the two series are shown (in the ad-
joining table) by month for the period
January 1946 to August 1948 for the
Bizonal Area.
Press Licensing to End
US Military Government is pre-
paring to relinquish its licensing
powers in the field of newspapers,
books, periodicals and other publica-
tions, Col. G. E. Tector, director of In-
formation Services Division, OMGUS
announced. The present MG licensing
system will be terminated as soon as
German legislators have enacted laws
which will adequately protect freedom
of the press in the US Zone of
With the ending of MG licensing,
it is not intended that a German li-
censing system be inaugurated. It
will then be possible for individuals
or groups, such as political parties,
labor unions, religious organizations
or educational bodies to enter the
publishing field without the necessity
of obtaining a special license to pub-
lish. Only such requirements as are
made of other businesses will be re-
quired of publishers in the future.
State OMG directors are being re-
quested to inform the German minis-
ters-president of the necessity for
passing adequate press legislation,
which will prohibit censorship, protect
the press from governmental dom-
ination or domination by special-
interests and which will guarantee
that there be no arbitrary inter-
ference by the police or other ad-
ministrative bodies in the free flow
and dissemination of news and printed
Conferences are being initiated
with political leaders in the states of
the US Zone to acquaint them with
the MG decision.
OCTOBER 19, 1948
Indexes of Volume of Industrial Production
(excluding food processling and construction)
(Not adjusted for seasonal variations)
100 represents 1936 average
1946             1947               1948
revised    old    revised    old   revised     old
/vlonthly  Average       34      (33)      40      (38)
January                  27      (26)     31      (29)      47       (44)
February                 28      (27)     29      (28)      48       (45)
March                    31      (30)     34      (33)      51       (48)
April                    31      (30)     39      (37)      54       (50)
May                      34      (32)      41      (39)     48       (46)
June                     34      (33)     41       (39)     52       (51)
July                    38       (36)     42      (42)      62       (61)
August                   39      (37)     42      (42)      67 *     (66)
September                39      (37)     43       (42)
October                  40      (38)     46       (43)
November                 39      (38)     45      (44)
December                 33      (32)     45       (43)
* Preliminary

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