The Next Twelve Months

FORTUNE looked ahead (in its July issue) at business for the next twelve months and predicted:

P: Defense spending will remain stable at $39 billion a year.

P: The cash budget will show a slight surplus in fiscal 1956; a potential 1957 surplus of $6 billion will be used for tax cuts.

P: Capital outlays, now rising $4 billion a year, will taper off to an increase of $2 billion a year by mid-1956.

P: Inventories will grow at a rate of $5 billion a year until next spring, then grow more slowly.

P: Construction will stabilize as home-building eases and public works expand.

P: Prices will rise about 2% in the wake of an average wage rise of 6%.

P: Incomes will advance $15 billion a year v next spring, but the rate of personal savings will go up $7 billion.

P: Consumer spending for foods and services will continue to rise, but the volume of goods bought--particularly cars--will decline slightly.

P: Credit will tighten as business and Government demands for money rise.

P: Exports, now at a rate of $14 billion v.almost $13 billion a year ago, should rise more than $1 billion more.

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