Stronger economy in 1987

By Phillip E. Yincent Vice President & Senior Economist First Interstate Bancorp.

Consumer Price Index is expected to rise 4.4% during 1987 compared to an estimated increase of 1.80/o in l 986.

In the national housing market, housing starts are forecast to de-

Story at a Glance

Reduced construction activity...3.6% rise in GNP.. lower energy prices, money supply growth will help consumption and production wide disparities in outlook for western states.

cline from an estimated 1.88 million in 1986 to L77 million in 1987. The majority of the decline is expected to take place in the multifamily area.

The underlying factors that yield basic optimism for the overall economy include the decline in energy prices, the fall in the value of the dollar, and rapid growth of the money supply. Although some states with major oil and gas reserves have been hit hard by the major drop in oil prices during th€ first part of 1986, the nation is a major net exporter of oil. Thus,

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