INDUSTRY-BY-INDUSTRY OUTLOOK : The Year in Preview

California came several years late to the nation’s economic recovery party, but the state should be celebrating all through 1997.

Here is what key industries will be up to:

MUSIC: With sales flat and the retail sector struggling, major record corporations are likely to have difficulty meeting revenue growth projections. Now that the alternative rock fad has bottomed out and the compact disc explosion is over, out-of-touch record chiefs will need more than a few aging superstars to fuel the $36-billion global music market.