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Show National Recession Expected To Continued The national economic recession re-cession is expected to continue into the fourth quarter according accord-ing to Craig B. Day. assistant vice president, quoting from the First Security Newslatter. The quarterly report, which will be published this week, is edited by Dr. Kelly Matthews, vice president and chief economist eco-nomist for First Security Corp., regional bank holding company. FOLLOWING the imposition imposi-tion of credit controls by the Federal Reserve in March, consumer attitudes were sharply altered, reflected in an abrupt reduction in spending and credit demands. The degree of w eakness in the economy is. however, anticipated anti-cipated to moderate relative to the free-fall experienced during dur-ing the second quarter. ACCORDING to the Newsletter, News-letter, there is little chance that the national economy will reestablish re-establish a growth trend prior to 1981. Consumers are rebuilding re-building savings and reducing debt burdens and are unlikely to increase borrowing and buying prior to achieving some gains in real income. Economic weakness in the second half of 1980 will be most evident in falling production produc-tion schedules and rising unemployment. un-employment. Also, inflation at mid-year was probably in the range of ten percent which indicates in-dicates that there is little chance inflation will drop below be-low eieht percent during the second" half of 1980. THE VOLATILITY in Financial markets during the past six months was histoically unprecendented. the publication publica-tion states. Short-term interest rates, after rising to 18-20 percent, per-cent, experienced a two-month two-month decline, while Treasury Bills and Certificates of Deposit De-posit were in the IV: to 81-'; percent per-cent range- by mid-year, up modestly from the lows established estab-lished in May. Mortgage rates gradually edged downward and are presently in a range near 12 percent. Leading Indicator Indexes for Utah dropped sharply in the second quarter and slow er economic growth in Utah is expected ex-pected in the third quarter. Although Utah's economy is influenced by a continuing national na-tional recession it has, in general, gen-eral, not been impacted by the recession to the extent experienced experi-enced in other parts of the na tion. ' ;-: DURING THE second qua'r- : : i ter, reduced rates of business : " activity in Utah spread from . :': the construction and auto- ' mobile industries to other manufacturing and retail egr : :' ments of the economy. ...... j. The rate of unemployment!'.. "" in Utah is expected to edge tcv-- ward six percent in the third quarter from the 5.3 percent which prevailed at mid ear: .. . MINING production in V uih . : during the first half of 1980 w as : : below year-ago levels in most' : major minerals. Coal produc- :.:" tion cumulative through June .:. was nearly 1 1 percent below :' last year. - 'z: Additionally, copper pro- -duction. down 2.5 percent I through April, w ill be sharply : low ered if the current strike is ; ; protracted, forecasted the '-. Newsletter. : f RESIDENTIAL construe- " . tion in Utah is expected to re- : main very sluggish in the third ;. quarter with building permits ; for new dw elling units current- ; : ly down 52 percent below 1979 ' ! and total construction value ; cumulative through May 1980; down 44 percent belosy .last year. |