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:

BANKS AND S&Ls;: Acquisitions and consolidation are expected to continue, particularly among the thrifts. Wells Fargo’s takeover of First Interstate last spring will erase another 3,600 jobs this year, and Bank of America’s plans to close 120 branches in the state will add to the pain. But overall, employment in financial services should show a tiny gain for the year as mortgage companies and nontraditional lending institutions pick up the slack.