Slowdown Predicted--Again

The nation’s business leaders forecast today that the prolonged economic expansion will begin to falter next year but hedged that bet by noting it could be their fourth incorrect prediction.

The Business Council, a private association of top businessmen, looks for “an easing of the overall economic performance” next year in its semiannual economic report released at the Homestead, a posh resort in Virginia’s Allegheny Mountains. “I would point out to you that I have said that three times now, and in each case we have put off for another year the expected slowdown,” said John Reed, chairman and chief executive officer of Citicorp, who has been in charge of forecasts for two years. The group also elected Roger Smith, chairman of General Motors Corp., as its new chairman for the next two years, replacing Stephen Bechtel Jr., chairman of the Bechtel Group Inc.