1971 Outlook

Now that revised first quarter GNP figures have been released, it is useful to take a further look at what the figures show and what the prospects are for the rest of the year. Real GNP rose more than 7% in the first quarter. Inflation continued at a relatively high rate, 4.8%, after allowing for an adjustment to take account of the government pay raise that boosted the rate of inflation in the first quarter. Rising GNP has been followed by increases of industrial production in April and almost certainly will be followed by an additional increase in May.