Key Indicator Stirs Fear of Inflation Rise: Business Outlay Boom Seen Growing in 1970
The business investmentÛª1 boomÛÓa major symptom and . symbol of inflation ÛÓ will ac- . celerate even further in 1970, the Nixon administration reported last night.</br></br>According to the eagerly awaited survey by the Department of Commerce and the Securities and Exchange Commission, business expansion expenditures will rocket to an annual rale of $77.5 billion in the first half oT 1970, up 11 per cent from the comparable period this year, and up 6 per cent from the second six months of 1969.</br></br>Economic Council Chairman Paul W. McCracken told The Washington Post, "would have Ibeen hoping to see a more [modest projected increase.Û</br></br>Estimated expenditures for this calendar year were placed at $71.2 billion in the new survey, a gain of 11 per cent over the full year 1968. Projected spending for the iourth quarter has been boosted 1.5 per cent since a survey this past summer.</br></br>For 1970, the outlook as presented by the government now suggests an even bigger in-flationary thrust, than indications of a 7 to 9 per cent increase given in recent private surveys. (Government estimates for tiie full year ahead will not be available until early in 1970.)