Pacing this gain will be continued advances in industrial construction, as business expenditures for plant and equipment are expected to top 1964 by 15%. Utility companies and the public sector are also expected to spend more for construction in 1965, while office building construction should hold its own, after a brief adjustment during which slight excesses will be allowed to diminish. Adding it all up, in constant dollars construction in 1965 should be little changed from 1964 with growth in the non-residential sectors being offset by lower housing starts. Actual construction spending is expected to show an increase because of higher construction costs. During the year we would expect that some of the imbalances between supply and demand will correct themselves, setting the stage for the resumption of growth trends in both physical volume and construction spending in the years ahead. # # # -6-