Ottawa Herald in Ottawa, Kansas

Economic Outlook Brightens for 1971 Forecasts

New York AP reports 1971 prospects mix of gradual improvement and risks. Unemployment to stay above 5 percent but trend downward. inflation near 4 percent on average, 5 percent early year. Interest rates lower than 1970, more credit available. Wages up with 7-8 percent gains seen in 1970 likely again. Housing to expand with 1.7 million conventional units and 400,000 mobile homes. Consumer savings around 6 percent of take‑home pay. Consumers, though hurt in recession, may lead the recovery as liquidity rises and credit eases. Multiple risks include strikes in steel, inflation, and political-year fiscal strategy.