– Main event: Topping this week`s agenda is growth, or the lack thereof. Despite constant talk of a slowdown, no one seems to have detected much solid evidence the economy has turned sluggish. President Bush recently made fun of economists ”whose predictions of economic disaster are now in their 78th straight month.” Some limited evidence of the brakes being applied may appear Thursday, when the government provides a revised picture of the gross national product for the first quarter. A month ago, the economy was reported to be growing at a slightly inflationary 3 percent annual rate, after the effect of last year`s drought was excluded.
– Look for: Not much change in the base figure. At the same time, economists will repeat their belief the economic slowdown is real. One reason for that view is a slight decline in the price of commodities. Last week, the Commodity Research Board`s widely followed index of commodity prices fell 5.33 points to 237.43, a decline of more than 2 percent. That was seen by Don R. Hays, director of investment strategy for Wheat First Securities, Richmond, Va., as evidence that inflationary pressures are cooling and that interest rates could stop in their tracks.
– Losing glimmer: Making the heaviest thud among commodities last week was gold, which dropped through the floor. The Midas touch has eluded the Soviet Union, South Africa and other net sellers of gold, with the metal closing last week at $364.50 a troy ounce. A year ago, it fetched $450 an ounce. As the dollar has gained in value, sweeping aside other currencies, gold has gotten caught in the crossfire.
– Next up: A federal bankruptcy judge in New York will hear competing bids Monday for Eastern Airlines` sale of its Northeast shuttle. The Commerce Department reports April durable goods orders Tuesday.
– More events: The American Iron and Steel Institute begins a two-day annual meeting Wednesday in Washington. Also that day, domestic automakers report sales for the middle 10 days of May.
– Markets: A foreign stampede to buy stocks on Wall Street may be in the cards. Last week, the Dow leaped another 61.40 points, closing at 2501.10. More and more brokers say they see buyers in Japan and elsewhere looking this way to cash in on the soaring dollar and spiraling stock prices.
– Recap: Attention centered last week on Ernst & Whinney and Arthur Young & Co., which announced merger plans to create the biggest accounting firm and the second-largest consulting firm in the world. Meanwhile, David Ruder, chairman of the Securities and Exchange Commission, said he is stepping down to return to teaching at Northwestern University in Evanston.
– Meetings: Canada and Mexico will be the focus of a conference on world trade Wednesday, sponsored in part by the International Trade Association of Greater Chicago at the O`Hare Expo Center in Rosemont. Also that day, the Illinois CPA Society looks at cost management for industry at the Hyatt Regency O`Hare. Ford Motor Co. Chairman Donald E. Petersen strides to the podium in the Palmer House Thursday to speak to a luncheon of the Executives` Club of Chicago.
– Conventions: More than 90,000 visitors to the National Restaurant Association convention will remain in town through Wednesday. On Tuesday, the Control Engineering Conference-Annual Control Expo brings 8,500 to the O`Hare Expo Center-Hyatt Regency O`Hare, through Thursday.
