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DEBT PAY-DOWN SLOWING ECONOMIC GROWTH, INVESTMENT CHIEF SAYS

 DEBT PAY-DOWN SLOWING ECONOMIC GROWTH, INVESTMENT CHIEF SAYS
 CHICAGO, July 20 /PRNewswire/ -- While Americans respond to unemployment fears by refusing to borrow, economic growth will remain sluggish, a leading investment expert says.
 "Cautious consumers are steadily paying down their debt load," says Robert D. Milne, president of Cleveland-based Duff & Phelps Investment Management Co., in his firm's latest investment outlook. "Relatively low growth in income, fading consumer confidence caused by high unemployment and an unwillingness of Americans to increase their debt levels have undermined consumer spending, a major component of economic growth."
 Meanwhile, the Federal Reserve has lowered its discount and funds rates to their lowest levels in about 30 years, Milne says, because "evidence of erosion in the economy was reinforced by the rise in unemployment, for example, and money supply growth has been negative even on a nominal basis."
 Milne points out that when the job market and personal income improve and consumer confidence rebounds, "the low price of money should be a plus." His assessment of the leading economic indicators calls for improved economic growth in the next six to nine months.
 Milne has long urged the Fed to focus on economic growth rather than inflation. "With ample industrial capacity and an ample labor supply, the economy has the potential for non-inflationary growth," Milne observes. "Inflation will not become a problem unless the Federal Reserve panics into a wild money printing spree, either before the election or with a new Fed chairman should the President not be re-elected."
 Duff & Phelps Investment Management Co., part of Duff & Phelps Corp., maintains a major office in Chicago.
 -0- 7/20/92
 /NOTE TO EDITORS: For a copy of the report, contact Bob Milne at 216-771-3450 or Jacqueline Bitowt, director of corporate communications, at 312-630-4624/
 /CONTACT: Robert D. Milne, president of Duff & Phelps Investment Management Co., 216-771-3450/ CO: Duff & Phelps Investment Management Co. ST: Illinois IN: FIN SU: ECO


GK -- NY062 -- 0785 07/20/92 13:24 EDT
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Date:Jul 20, 1992
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