Prediction On U.S. Economy

Press, Volume CIX, Issue 32312, 2 June 1970, Page 15

Prediction On U.S. Economy

(N.Z.P.A. -Reuter—Copyright)

WASHINGTON, June 1.

The president of the New York Stock Exchange (Mr Robert Haack) said today that there were strong indications of an upturn in the United States economy.

In a television interview. Mr Haack declined to predict whether the stock market would continue to move upwards but he said: “I would think that there are some strong indications that the economy might be significantly better in the next six months, assuming some of the things that are on the drawing board come to pass.” Wall Street appeared to have been reassured by President Nixon's talk with busi■ness and financial leaders at the White House last Wednesday, he said.

The President had repeated •that it was his intention to get out of Cambodia on time and, possibly, to get out of Vietnam ahead of schedule, and this had been reflected in the market. Mr Haack said.! adding: "I think that the: Cambodian invasion and the Vietnam war are both very significant factors in the market”

Asked about a jibe by Professor Milton Friedman, the private economist, that the stock market has predicted 11 of the last three depressions, Mr Haack said: “The stock market is not a perfect indicator but, historically, it has been reasonably accurate in portending future developments. I would think that the stock market might give an indication four to eight months in advance of an event.”

Malaysia's Economy

Malaysia ended 1969 with a balance-of-payments surplus of 530 million Malaysian dollars (about SNZIS4m). The surplus, Malaysia’s first since 1965, was achieved in spite of the racial rioting in May of last year, which plunged the country into a state of emergency. Malaysia’s economic growth is generated mainly by primary production, especially rubber, tin, timber and palm oil.—Kuala Lumpur, 'June 1.