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Show The National Enterprise, July 20, 1977 Page twenty Watch for slump in u mmm aft a hm a fear m There is a definite feeling among economists, analysts and other observers of the automobile industry that sales are beginning to peak out. One major reason is that some question just how much consumers can continue to shell out for automobiles. The new Saxon 3 plain paper copier. Its brain is a solid-stat- e microprocessor. An incredible device that does all of the copiers electronic "thinking! Less circuitry for more reliability. Other smart ideas include an push button control panel. A more compact size. And an advanced reproduction system. And with all this, the new Saxon 3 costs less per month to purchase or rent than just about any other plain paper copier We've cut the ever plain paper copier made, us (801)486-935- 7 of easier-to-opera- te saxon 3 price O O office equipment specialized cili lull, J1.M Hu L.iki- - City Ul.th 84115'Ti-k-uhon- 48(5-9:15- progress. Consumers today are spending 7.2 percent of their disposable personal income buya far ing autos and parts level than anything higher seen in recent decades. Automobiles are dominating the total economy even more than they have in the past. Even though sales are topping out, the plateau is a very lofty one. Auto sales this year could come close to or exceed the record year of 1973. (Peter Zaglio of Wall Streets Loeb, Rhoades estimates that 1977 auto sales hit 11.3 million units while truck sales soar to 3.8 million adding up to 15.1 million, a new high water mark for combined cars and trucks by 3.4 percent.) will Using government statistics, economist Robert Eggert, who the economics publishes newsletter Blue Chip Economic Indicators and forecasts auto sales each month, figures that consumers shelled out the annual equivalent of $83.6 billion for autos and parts during the first quarter approximately 7.2 percent of their $1.16 trillion personal income. Even in record-shatterin- g 1973, consumers spent about 5.75 percent of their disposable income for cars. Last year at this time, it was above 6 percent. How much higher can it go? Eggert is one of the few analysts believing that the current level can hold through next year. He is estimating that 1977 sales will finish at 11.2 million units, up 11 percent from 1976s robust 10.1 million and he feels 1978 can finish at 11.2 also. There is no question that consumers are spending a record percentage of their disposable incomes for autos and 1 believe figures will show it was even higher in the However, it doesn't bother me for two reasecond quarter. sons. First, the auto industry had very bad years in 1974 and 1975 and there is a catch-u- p factor. Second, a lot of people want comfort and performance that they feel they get with big cars, and they arent sure theyll be able to get such cars later on, so theyre buying now. Normally, sales turn down in the third year of an auto boom, but 1 think both these . trends year. will continue next Ronald A. Glantz of Wall Streets Mitchell, Hutchins (newly merged into Paine Webber Jackson & Curtis) has a different way of figuring the automobile's impact on the economy. Detroit is currently taking a record share of expenditures for goods 11.5 percent of the final sales of goods going for new cars and parts, he said. (His final sales of goods" is |