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taxable retail sales, rose to historically high levels in 1972 and 1973. The increase in sales exceeded the risc in personal income, as people paid for many expenditures by drawing down personal savings and increasing their consumer debt. The present, economic sluggishness, however, which became evident in the third and fourth quarters of last year, will }lave a dampening effect on virtually all areas of the County's economy. Thus, while total income and retail sales in the County will be greater this year than in 1973, the rates of increase will be somewhat leSs than in the two previous years, and a large part of the gains sill be accounted fei- by inflation. Total building in Orange County has recently been registering trends very similar to those of the Southland aa a whole-buoyant activity during 1971 and 1972, followed by a major slowdown in 1973 and into 1974. The key factor in the sharp rise and decline has been housing. Housing shortages in 1971 and 1972 (vis-a-vis demand) were met by high levels of building, and in mid-1973 a somewhat overbuilt situation and historically high mortgage interest rates caused housing construction to slow dramatically. An underlying trend has been that, while the cycle in fluctuating rates of building activity in the County paralleled to a certain extent those of the entire region, rapid population inflows into Orange County have necessitated a generally higher level of growth. The outlook for the future (after 1975) is bright, barring another major U.S. economic recession or ~epression. Continuing urbanization will domi- nate the growth pattern of Orange County during the next thirty years; the southern portion of the County will absorb the major share of the population growth of the next three decades. Orange County will continue to be a recipient of the urban-economic dispersion pressures in Southern California since it will maintain a comparative advantage in environmental conditions vis-a-vis Los Angeles County. Orange County residents will subscribe in the main to a single family dwelling mode of residence. The 1983 Land Use Element of the Unincorporated area, one of the major residential growth areas of the County, will provide a positive and controlling influence in creating a less fragmented pattern of development (the total community development concept). However, while the general plan and the County's growth policy and development strategy will be moderately successful in managing the configuration of growth, it is likely to fail as a controller of the rate timing and ultimate magnitude of growth. The growth rate of the southern portion of the County will be influenced more by the actions of the City of Irvine in its attempt to control growth and decisions to lo~ate a major manufacturing or governmental employment complex in the south than by the general plan. Santa Ana will continue to grow as the County's governmental, financial, and professional office center. Retail outlets supportive of the office center will prosper, but the City's downtown area is not likely to become a 000031.