The Michigan Daily - Monday, September 16, 1985- Page 3 i BUSINESS 4 Retail sales increase WASHINGTON (AP)-The U.S. economy showed renewed signs of life last month with the biggest increase in retail sales since April and a modest gain in industrial production, the government said Friday. Even with the pickup in economic activity, the Labor Department said inflation stayed under wraps as wholesale prices took their steepest dive in 2/2 years. THE TRIO of reports, coming after news last week that unemployment in August had dipped to its lowest level in more than five years, had President Reagan singing the praises of the "miraculous powers of American enter- prise." In a statement read by Beryl Sprinkel, chairman of the President's Council of Economic Advisors, Reagan said the country stood ready to "unleash a decade of growth and increase 10 million new jobs in the next four years. But many private economists, while delighted with the August reports, were not as certain that they offered con- clusive proof that the economy was finally emerging form its year-long slump. "CERTAINLY AUGUST was a stellar month in terms of the economy's performance, but it came after a terrible month," said Allen Sinai, chief economist for Shearson Lehman Brothers. "There isn't enough evidence yet to get overly optimistic about the future." The report on retail sales showed a 1.9 percent August increase to a record $116.1 billion. The big gain, which came after a tiny 0.2 percent July increase, was attributed to a surge in auto sales, which rose 7.1 percent in August, the biggest one-month increase in almost three years. However, analysts said much of the demand for autos was spurred by the cut-rate financing deals offered by U.S. automakers. They said it was unlikely the huge increase could be sustained in coming months. BUT OTHER analysts said even without autos, retail sales were up a solid 0.4 percent and they predicted that consumer demand will grow even more in coming mon- ths. "We see a strong pattern in retail sales, not only for autos, but across the board," said Michael Evans, head of Evans Economics, a Washington forecasting firm. "We look for an even bigger non-auto gain in September when the back-to-school selling season starts." Among the other economic news: A The Labor Departmentsaid wholesale prices fell 0.3 percent in August. The decline, the fourth in the last 12 months, left wholesale prices rising at an annual rate of just 0.8 percent so far this year. Falling food and fuel costs were given the credit for the August drop. " The Federal Reserve said industrial production rose 0.3 percent in August following no change at all in July. The August increase equaled the strongest one-month gain this year as the industrial side of the economy has been pounded by foreign competition. In the past 12 mon- ths, production has grown by only 1 percent, standing at 124.8 percent of its 1977 base at the end of August. Sinai said it was "probably safe to say that the worst is over" for the industrial sector but he added it was not yet clear how strong of a rebound will occur. " THE FEDERAL Home Loan Bank Board said rates on fixed-rate mortgages rose slightly in August to 12.62 percent, but still remained well below levels earlier in the year. Adjustable rate mortgages continued to decline to 10.6 percent, the bank board said. " The Mortgage Bankers Association said a survey found that the number of American behind by 60 days or more on their mortgage payments dropped to 1.83 percent in the April-June quarter, the lowest level in a year. The spate of economic news left Wall Street remarkably unimpressed as stock prices posted broad-based declines for a fourth straight day. Analysts say the new reports were not easing investor worries about the sluggist economy. BUT SPRINKEL, briefing reporters at the White House, said he viewed the newrstatistics as "more and more supportive of our expectations of renewed economic strength during the second half of the year." The administration is predicting growth in the final six months of this year at an annual rate of almost 5 percent, far above the weak 1.1 percent rate turned in during the first half. However, many private economists believe the growth rate will not rebound to above 2.5 percent to 3 percent in the second half of the year as U.S. industry continues to be held back by a trade deficit expected to reach $150 billion this year. THE COMMERCE Department said that retail sales, while spurred primarily by auto demand, were up in a variety of areas. Department store sales rose a strong 3.3 percent while specialty clothing stores, gasoline stations and drug stores posted smaller gains. Sales were unchanged at building supplies stores following a large 3.4 percent July gain. Career Planning & Placement Recruiting Schedule The following employers and representatives from graduate/professional schools will be on campus to conduct in- terviews. The following is the schedule for the next three weeks. September 26 Loyola University of Chicago September 30 and October 1 Inmont October 2 National Starch & Chemical Com- pany October 3 Arby's Inc. Limited Express Contact the Career Planning & Placement Office for more information. PUT uS To THE TEST , N * fuU8tm atrilscoaisatla tl *y Research location~s- " 1.0W H ouryCs ooe " TraferriCV~tigtg Daily Photo by ANDI SCHREIBER A mime from the Mime Troupe clowns around Friday at Festifall on the Diag. Bishops fight s WASHINGTON (AP) - A leader of U.S. Roman Catholic bishops said yesterday that new emphasis on the teaching of sexual morality is "urgently needed" to fight off the impact of the sexual revolution. "Cultural factors" from outside the church "account for many recent problems in Catholic life in the United States, as in many other countries," Bishop James Malone, president of the National Conference of Catholic Bishops, said in a statement. AMONG THESE factors are exaggerated in- dividualism, the culturally conditioned disinclination of many persons to make permanent commitments, the breakdown of marriage and family life, the sexual revolution and; exaggerated secular feminism,", he con- tinued. Thus, Malone said, matters needing special educational emphasis must include "moral doctrine and moral issues: for example, conscience formation, the role of conscience (and) sexual morality - urgently needed to counteract the impact of the sexual revolution on Catholics." Malone's comments on sex and morality were included in a lengthy statement submitted to Vatican officials in ?xual revolution preparation for next winter's worldwide gathering of bishops in Rome on the subject of the historic 1962-65 Second Vatican Council. THE AMERICAN church leader, a strong supporter of the council known as Vatican II, was trying to make a point that outside forces had led to problems since the mid-1960s, not liberalizing church changes set in motion by the council. Conservative Roman Catholics have criticized some of those changes, such as switching the language of the liturgical Mass from Latin to English, altering other part of the Mass format and giving church members more say in local decisions and bigger roles in the Sunday liturgy. Such moves have sometimes tended to weaken traditional Catholic understanding of church authority on all issues, some have contended. MALONE acknowledged that confusion over moral issues has been "a recurring reality since Vatican II in the U.S. as elsewhere." And he added that such confusion has included questions about "the church's teaching authority with regard to morality, and the limits of dissent." O/GrfVICQ/ 'C D_"___ good price- That's State Farm insurance." 542 LSA Buding 764-9216 INSTANT- Passport- Visa - Application, Photos while U wait hrs. -1:00~ 4:30 Mon- Fri 10% STUDENT DISCOUNT IINSURANCE DAN JILEK 450 S. Main Suite 3 Ann Arbor 761-2666 Like a good neighbor, State Farm is there. State Farm InsurancemCompanies Home Offices Bloomington Illinois EDUCATIONAL CENTER, LTD. TEST PREPARATION SPECIALISTSSINCE1938 Call Days, Evenings & Weekends 662-3149 203 E. Hoover Ann Arbor, MI 48104 Permianent Centers In More Than 120 Major U.S. Cities & Abroad For Information About Other Centers OUTSIDE N.Y. STATE CALL TOLL FREE 800-223-1782 In New York State Stanley H. Kaplan Educational Center Ltd lk 'M' ruggers rub for (Continued from Page 1) "You're tickling me," she said, giggling. "Feel this," he said, putting some extra muscle in the back rub. "Ahhh," she sighed. He had hit the spot. "Heaven, heaven," Perpich said. "Tomorrow morning you'll wake up and you'll feel like a bowl of Jell-O." Perpich, who's friendly fingers were "trained in a clinic in Sweden," considered himself a master massager. "I START AT THE NECK and work down the blades and the lower back," he said. "You need a lot of thumb work, a lot of wrist and a lot of HAPPENI NGS Highlight Michael Shabazian, president of Computerland Corporation will ad- dress the topic of "Future Trends in the Microcomputer Industry." The speech will begin at 4:15 p.m. in Hale Auditorium, located in the Assem- bly Hall Building. The event is being sponsored by the Marketing Club and the Entrepreneur Club. Films MTF -1984, 7:30 & 9:30 p.m., Michigan Theater. Speakers Near Eastern & North African Studies - Anthony Sullivan, "Israel & the Palestinians, 1985 An Update," noon, Lane Hall Commons Room. Studies in Religion - Harvey Cox, "Jesus & the Moral Life," 8 p.m., MLB3. Meetings Society for Creative Anachronism -7 p.m., East Quad. Miscellaneous A-Squares - Square dance lessons, 7 p.m., Union. Michigan Botanical Club - Seminar, Charles Jenkins, "The Saturday Morning Gardner," 7:45 p.m., Matthaei Botanical Gardens, 1800 Dixboro Rd. Performance Network - Open auditions, 7 p.m., 408 E. Washington St. big bucks strength in the hands. Constant con- tact. Sounds pretty intimate. Wonder if any of the massagers ever form relationships in this annual event? "Oh yeah," said Perpich. "We call those 'Hugger Ruggers."' THE RUGBY CLUB wasn't ac- tually selling massages, but giving a complementary rub, and a free pass to Rick's American Cafe, to anyone who bought a "Michigan Rugby: No Pain" button. "No pain," boasted Perpich. "That's out motto. We feel no pain in rugby. Our pain threshold is nill. "Only sick, warped, and demented individuals play rugby," he said. Perpich massaged the woman's fingers and temples before she got up to leave. "It was a very good massage," she said. "But I've got to go to happy hour." Perpich had that Groucho look again. He was searching for massagee number 31. "Next!" he said. 46%1 Y of The School of Education will be interviewing students by phone to call alumni nationwide for an alumni fundraising phonathon. " Phonathon held Sunday through' October 6 through November 7 * Callers will be expected to work week with some opportunity for Thursday evenings two of the five nights each additional hours STUDENT PHONATHON CALLERS WANTED Part Time Employment Nights " $4.00 per hour, nightly incentives, occasional snacks Call for an interview between 10:00 a.m. and 4:30 p.m. Tuesday, September 17 through Friday, September 20 CALL 7634288 The University of Michigan is a Non-Discriminatory, Affirmative Action Employer Jobe £4Iiwn tt19atijg GET IT FREE! At these locations: Dormitories Mary Markley Couzens Alice Lloyd Dormitories (Continued) Bursley Baits I Daitc' TT Central Campus Angell Hall Mason Hall Fishbowl Central Campus (Continued) Michigan Union Michigan League i