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Show WMs Economy Looks Strong, Economist Says v - I ,,uh-s tVO"" outlook ,s stroii dosp.ie a 'Ifl shor,Jf!0 aorOSS .IrterlvKirslSecunty Hank 'Ldf nor released this wook. M Robert Palton M.maser. , Kdv K. Malthews. v.ee 1 .iJent aJ economist, is ' Ljiior of the newsletter. Most sectors of the state ' nomv experienced si;n.t.-CIBt si;n.t.-CIBt process in the t.rst 'juirterofl. the newsletter yVS Positively influenced by , stronger national economy. ' ,(,e Utah economy is expected ' ,0 maintain this upward ' . omentum during the next Utef months. While the rate ot unemployment unemploy-ment in Utah is expected to i Kmain near 5.5 percent, job creation in the construction, manufacturing and mining ; industries is expected to inaMse. Rapid expansion is predtct- the construction industry I during the second quarter. ' ' reflecting the sizable increase i both residential and non-1 non-1 residential building permits issued in the first quarter. '. ', The improvement in the national economy will favorably favor-ably influence copper and sd-i-l production, and an acceleration accelera-tion in mining activity should increase coal production in Utah after a slow first quarter. The newsletter further predicts pre-dicts that retail sales will continue to grow at the 14 percent rate recorded in the first three months of 1)77. The continuation of the drought in the Western States could reduce consumer confidence. However, during the first quarter, consumer spending and credit demands continued strong, indicating that uncertainty uncer-tainty associated with the drought has not yet had a negative effect. On the national scene, the letter predicts that business activity will accelerate sharply, establishing an above-average growth pattern that will probably continue throughout the summer. The rate of inflation should reach above h percent during 1977, despite the Carter Administration's announced anti-inflationary policy. The rate of real economic expansion expan-sion in the April-to-June period will reach an annual rate of 7-H percent. Interest rates will remain relatively stable during the second quarter, but higher inflation and rising demands lor credit will push interest rates upward in the second half of )77. Husiness spending for plant and equipment is also anticipated antici-pated to increase in the next i quarter. Of 'resident Carter's (leci- ' sion to drop his request for u $50 tax rebate, the newsletter concluded that the urgency to stimulate the economy, which led to the rebate proposal, no longer exists. |