Area Business Faces Year of Adjustment: Washington Mirrors Nation ...
Û¢ While economists fret over the possibility that the Nation's boom is turning into a recession, WashingtonÛªs economy appears headed for steady growth, and possibly a boom of its own in '68.</br></br>As it turned out, 1966 was a good year for the area economyÛÓif one looks only at overall performance. But a deeper look shows a very mixed economic picture. Tn the face of record highs in employment and other indicators of basic economic health, some key sectors of the local economy are sharply off as the new year begins. ÛÏTight money,ÛªÛª which became a household term in 1966, lias had profound implications for the areaÛªs home-building industry, mortgage bankers and savings and loan institutions. Suppliers of construction materials have been affected and expansion plans of many other businesses have been thwarted. Retail trade has been spotty and new car sales have been slow. 1967 opens with an economic picture as mixed and contradictory as the area has seen for many years.</br></br>Clearly, 1967 must he a year of adjustment here, with overall economic growth slower than in 1966. The outlook for the DistrictÛªs economy, as shown in the chart accompanying this article, points to a moderate rise in real output, while metro-wide performance should be somewhat better than shown for the District. But with nny luck, 1968 could be an economic whopper. By then the areaÛªs basic growth strengths should be vigorously bolstered by a rejuvenated construction industry straining to meet backed-up demand.</br></br>In many respects, Washington holds a mirror to the national economy. The forces which will shape Ihe national economic scene in 1967 will also work powerfully here: tioiial economy. The ?,u per-heated growth <>i ].%li is not likely to be matched in 1967, nationally or in Washington.</br></br>Û¢	Scarcity of money will begin to ease. Funds will trickle into the stalled building industry and become available for oilier high-yield business expansions.