Show BABSON'S NS N'S I Cash Registers Now that Easter Is over and taxpayers have or have or ought to have paid have paid up what they owed Uncle Sam on last years year's earnings earnings earnings earn earn- ings one of the big questions is How freely will consumers spend U this s summer CURRENT ECONOMIC STATUS UPON THE ultimate answer to that question quite a good deal hangs We are now in the eighth year of a cyclical ex expansion expansion ex- ex which has chalked up upa a billion Increase in Gross GrossI National Product But the business business business bus bus- I iness community's confidence in the outlook is dampened byI byj by j i I a sizable number of uncertainties uncertain uncertain- I I ties ties political political military and I economic I Wl While le industrial production just hasn't made the long strides earlier forecast by some ob observers observers observers ob- ob servers with a strong boost i from inflation GNP has roared I ahead at record near-record speed HOWEVER uncertaintieS uncertaintieS- uncertainties especially concerning possible government tax moves and the I Imposition of wage and price have controls controls have added a note of caution PERSONAL INCOME Yet very much on the plus side in any assessment of the situation Is the extremely high level of on employment i which ch promises to be well maintained over the near term at least s 's s being held to four per cent of the total labor force about as close to minimum as we can expect Perhaps the biggest plus of all Is personal Income Already at a record high it continues to move smartly upward THE INCREASES being regIstered registered registered reg reg- reflect gains in several parts of the economy including advances In wages and salaries in business and professional In Income income income in- in come in rental returns aswell aswell as aswell well as in dividend and interest payments LIVING LIVIN G COST SAVIN SAVINGS CiS PURCHASING G POWER How much money people have available for discretionary purchasing purchasing purchasing pur pur- chasing depends in large measure measure measure mea mea- sure on what it costs them to obtain the necessaries of life food clothing and she shelter 1 t e r. r Living costs go on climbing relentlessly At the end of Feb Feb- I latest month for tor u i v complete figures are aVailable l b consumer prices were 37 37 cent above a year at a record per er I cent of 59 1957 average e BUT HOW much mon y u available for spending g depe pe also on t the he amounts st stash ashy away In peoples people's so socks Since the middle of ot last Year savings have risen sha t climbing to very hl high h te levels levels' I This increase in to total tai sa and In the share 3 of allocated to savings Is the m sumers sumer's answer to rising and higher interest rates BOOSTS IN total personal come and in into Income me after t tare have for some time been out pacing Increases in UVin As a result a majority of t o nations nation's consumers are la to I favorable buying a position e eva though many people have not shared full fully y in the broad U. U I come gains natica national lYe ly CONSUMER A ATTITUDES DES People use their purely tl power In two ways Either tie Ile buy goods and services crib orthe orth j f buy financial assets saving I Their choice is limited to t tt their j Income or and/or their ability t to obtain credit as well as asb bythe cost of that credit 1 decisions are governed a balancing of the benefits a I Ithe the costs of what Is to t bj bought j HOW WILL consumers read this summer Since begets caution and a l lour our guess Is that by and consumers will continue to q I more freely than last year But spending decisions further influenced by price u a tax developments other got goi m moves 0 v e s here and and abroad our commitment I k d Vietnam and by business 2 ai ad employment conditions pr prevailing pre pre- in local areas I WHILE PROFLIGATE PROFLIGATES ing may be avoided conso e purchases of goods and sen ices tees will show this summer It should be ft iii biggest yet for apparel apparel sportswear sport and camping goods and r rear accommodations will get the play I S I |