COMMERCIAL Aust. 'Bubbling' By Mid-1969

Press, Volume CVIII, Issue 31764, 22 August 1968, Page 19

COMMERCIAL Aust. 'B ubbling' By Mid-1969

(X.Z Press Association —Copyright)

SYDNEY, August 21.

W. D. Scott and Company, Proprietary, Ltd, the Aus-tralian-based management consultant, is telling 800 business firms in Australia this week to expect a solidly-based boom for Australia in the coming year and that the economy 7 should be bubbling by mid-1969.

The firm’s economists expect 1968-69 to show strong growth—stronger than the Government expects.

The Treasurer (Mrspeech, expected real growth McMahon) in his Budgetin excess of 6 per cent.

j W. D. Scott expects growth of about 7 per cent. Main points of the firm's forecasts are a recovery in rural business; a strong increase in plant and equipment markets: expansion of consumer spending: slower growth in the public sector but perhaps a little more growth than the Treasurer [aims for. Interest Rates Also, the firm expects a tendency for money to be tighter but a credit squeeze i only in an emergency. A oneway move (if any) in interest rates—up: growth in migration and employment: further strong inflow of capital: possible acceleration in price inflation: and maybe exchange rate adjustments. In short a transition of this kind: steady improvement for the rest of 1968; a significant step-up in the first half of 1969: and a bubbling economy at raid-1969.