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Show Utah Business Outlook Good letter suggests that business conditions nationwide in 1977 should be favorable, with the pace of economic activity increasing as the year progresses. pro-gresses. Real Gross National Product is forecast to rise 5Vi percent in 1977 and the pace of inflation should remain generally unchanged un-changed in the 5-to-6 percent range. The current position of the U.S. economy is more positive than the 3 percent annual increase in fourth-quarter Real GNP wouid indicate. Retail sales, industrial production and personal income are each rising rapidly, while the rate of unemployment edged downward down-ward in December, initiating what will undoubtedly be a slow but, hopefully, consistent reduction reduc-tion in the jobless rate. Declining interest rates in the fourth quarter reflected a more expensive monetary policy and a continued sluggish demand for business loans. By the second half of 1977, as the demand for business loans strengthens in conjunction with a general upturn in business activity, interest rates should press gently upward, the report concludes. Utah's economy in 1977, seems poised to continue the highly successful business climate cli-mate of 1976, according to the quarterly First Security Bank Newsletter being distributed this week, said Donna W. Dearden, Assistant Vice President. Presi-dent. Dr. Kelly K. Matthews, vice president and economist is the editor of the Newsletter. Total employment is expected to increase by 25,000 jobs, on top of the 22,000 employment increase in 1976. The unemployment unemploy-ment rate, which dropped sharply in 1976, to 5.6 percent in December, probably will remain near 5'2 percent throughout most of the year. The construction industry can look forward to another strong year in 1977. While the exceptionally rapid 1976 growth rates in residential construction may not be duplicated in 1977, a sizeable increase is expected. Copper production increased in value in Utah in 1976 by 14.3 percent. Coal production reached reach-ed an ail-time high of 7.7 million tons in 1976 with additional development of this industry expected in 1977. The letter goes on to predict a continued healthy growth in 1977 of retail sales. Value of retail sales is expected to increase by about 15 percent. Automobile sales in Utah in 1976 increased 15 percent above 1975. Recent substantial gains in consumer installment loans also indicate an attitude of consumer confidence, but moderate mo-derate growth in commercial loans suggest that businessmen in Utah yet retain a cautious posture relative to expanded business spending. On the national scene the |
