Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
NAMM Looks Forward to 1954
# The year just ended was a good year by any yardstick. Just how good it was must
await release of final statistics.
# 1954 is expected to be almost as good as 1953. although a downward drift is expected,
which may turn upward by the end of the year.
# "Fortune" magazine predicts that Gross National Product will be about 3 percent
less than the peak of 367 billion dollars hit in 1953.
#
Industrial production in 1954 will decline about 6 percent from last year's high.
#
Federal spending will be close to 67 billion, or 5 million off from 1953.
# Military and Foreign aid will be near 38 billion, a decline of 4 billion dollars
from '53.
# The demise of the excess profits tax will leave business with 3 billion dollars more
than last year, while the 10 percent cut in personal income taxes will give individuals about
the same amount of extra money. If the increase in the social security tax to 2 percent on
January 1, is not reduced, it will cut the extra funds for business and individuals by about
600 million dollars each.
# Manufacturers, wholesalers and retailers face a sales dip and will reduce their
inventories of hard goods by roughly 4 billion dollars during the year. Soft goods sales
should remain steady at current levels.
# Factory wages rose 3 percent in 1953, while industrial and living costs rose 1 percent.
Farm prices declined 6 percent.
#
Farm prices and the cost of living will hold steady in 1954.
#
Capitol spending for plant and equipment will drop 6 percent.
# Personal Income with the lower taxes after January 1, will keep disposable income
close to the recent peak of 250 billion dollars annually.
# Personal Savings, about 7 percent of disposable income in 1953 will slide off as
overtime earnings disappear.
# Consumption expenditures should hold fairly steady in 1954. though there will be
less spending on goods and more in housing and services.
#
The growing baby crop requires more dollars for food, clothing and accessories.
#
Home Construction will run about 1,100.000 units.
# Public works will expand in the next two years to offset cutbacks in defense
spending.
•
#
Money will be looking for borrowers.
# Credit—both long and short term interest rates will soften. Money will be relatively
plentiful.
•
# Business—while it won't walk up to you, and knock you down—will be there. Those
who meet 1954 halfway—will receive their just rewards.
THE MUSIC TRADE REVIEW, JANUARY. 1934