Ford optimistic on economy

Press, Volume CXV, Issue 33873, 19 June 1975, Page 17

Ford optimistic on economy

(New Zealand Press Association— Copyright) WASHINGTON, June 18. President Ford has declared that the worst recession since the 1930 s is coming to an end, the “Washington Star” reported.

Pointing to a variety of optimistic economic indicators, Mr Ford said he was confident that, “We are at the bottom of the economic slide . . . and we will soon be on our way up.” “The key task now,” the President said, “is to chart the right path back to prosperity without inflation and with growth. “Sound economic recovery depends upon moderation in economic expectation, fiscal restraint by government, increased savings and capital investment, and a long-range plan for energy independence as well as improved regulatorv policies,” he said. Mr Ford’s assessment of the economy came in a speech prepared for delivery before the National Federation of Independent Business, an organisation of small businessmen. holding a convention in Washington. In predicting an economic upswing, the President cited a study bv the National Federation of Independent BusiIness, reporting that small I businessmen are optimistic I about the next six months. Mr Ford also cited a list of i indicators to support his contention that the recession is ending. These included an increase in retail sales and con- ’ sumer confidence, a reduction

in inventories, a rise of 553,000 in employment between March and May, a drop in the rate of inflation and in interest rates, a 27 per cent increase in building permits in April, and a boost dur ing the same month in orders for new equipment. He did not mention discouraging figures made available on Modav showing that the nation’s industrial pro duction had declined for th< eighth consecutive month. The American car industn shows some improvement in

the market after the anouncement of sales for the first 10 days of June. Sales for the first third o' the month were 6.4 ner cent below the corresponding per iod last vear, but analysts be lieve sales are continuing to strengthen from their depressed levels. Ford was the only company to report a major sales decline in the June I-10 period Its sales slumped 25.2 per cent below the level of a vear before, but the comnanv said the decline reflected the | ending of sales contests in I the last divs of May. General Motors’s sales I were off only 0.3 per cent. Chrysler’s gained 6.1 per I cent, and American Motors 16.0 per cent