Between the end of 1958 and the end of 1959, total national output rose about 5 1/2 per cent; industrial production rose 10 per cent—more than in the previous four-and-a-half years put together. Expansion got under way towards the end of 1958. By then the mild recession that began earlier that year had probably corrected itself. But any spontaneous forces of recovery were greatly accelerated by Government action. Demand began to rise rapidly, stimulated first by the removal of all credit restrictions in the autumn of 1958 and then by the Budget.

Demand and output continue to rise. The problem is whether the rise in total demand—or in demand for particular types of goods—will be too large or too small in relation to the productive capacity of the economy. As the last chapter shows, the reserves of idle capacity and of labour are rather smaller than they were. There is certainly still scope for further expansion: capacity grows all the time. But the pace at which demand grows and the pattern of its growth must now be more carefully controlled.

Demand and output are increasing in all the major industrial countries (table 28 and chart 15).

Last year Britain was among the leaders of industrial expansion, for the first time since 1953; as in 1953, expansion in this country coincided with expansion in the rest of the world.