European Stars And Stripes (Newspaper) - September 20, 1986, Darmstadt, Hesse                                Page 4 the stars and stripes saturday september 20.1986 personal incomes spending jumped in August in . Washington a americans personal incomes climbed d.4 percent in August the Best gain since april while their spending shot up an even faster i. Percent the strongest performance since december the government reported Fri Day. Private economic said the income gain with a big Rise in wages and Sala Ries was a positive sign for the Economy but they were iras enthusiastic about the spending increase since it was dominated by a huge jump in new car sales. John havens economist with Chase Econometrics said the car sales were reaction to the Cut rate financing deals being offered by automakers to reduce a Large Slock pile of unsold cars. For this reason he said the sales would not trans late into increased Auto production which would boost economic growth in com ing months. Instead the surge in sates will Likely reduce growth since Consumers had to dip into savings to finance the purchases and will have to scale Back their spend ing spree in the months ahead to rebuild i hair savings level. The spending increase essentially borrowed from growth in the fourth Quarter and the first Quarter of no jul year rather than representing a fundamental improvement in consumption spending in the Economy he said. The department said the 1.1 percent Rise in personal consumption spending followed a july increase of 0.4 percent and was the biggest upturn since a 1.9 percent increase in december 1w85. The spending surge came primarily i purchases of new cars As Consumers responded enthusiastically to the return of Cut rate financing incentives offered by automakers. Analysis said the september increase in spending is expected to be even greater since Early reports show a larger surgeon car buying this month. The 0.4 percent Rise in income Fol Lowed a  percent Advance in july and no change at All in june. However analysts said the changes in the past three months have been buffeted by a Host of special factors including retroactive so Cial Security Benefit payments change sin farm subsidy payments and a strike in he communications Industry in june. Excluding these factors the August gain in incomes would have been an even stronger 0.5 percent inc depart ment said. The All important wage and salary component of incomes climbed at an annual Rale of $ 12.2 billion in August double the july gain. Manufacturing which has been in a slump for almost two years because of foreign Competition enjoyed a 13.2 billion Rise in August payrolls compared to a drop of $400 million in july. Farm income Rose j2.7 billion in a gust following n drop of $6.7 billion in july. The reason for the change was a 12.8 billion Rise in subsidy payments Ina gust following a $4.9 billion july de Cline. Personal consumption spending which includes virtually All outlays made by Consumers except interest payments on debt Rose at an annual Rale of $32.1 billion in August almost three times fas Ter than inc july Advance. Purchases of durable goods were up $26.9 billion compared to an increase of 11.7 bilion the month before with the surge in car sales accounting for most of this in crease. Purchases of non durable eods items expected to last less than three years Rose a More modest $2 billion while purchases of services a category which includes housing expenses Rose $2.4 billion. Disposable or after tax incomes Rose 0.3 percent in August up slightly fro the july increase of 0.2 percent the personal savings rate savings As a percentage of disposable income slipped to 3.1 percent in August Down from 4 percent in july. Derailment train cars he along the tracks near Ron mass., after a derailment Thunder. More than 800 persons were evacuated from the area spice it was feared fumes would spread from chemicals transported in some can. Dod plans medical recruiting drive by Chuck v1nchwashington Bureau Washington the defense department will soon launch u recruiting Blitz aimed at the . Medical Community to entice More civilian health care professionals into critical wartime Mili tary skills. Or. William Mayer assistant Secretary of defense for health affairs testifying Friday before a congressional subcommittee said agreement has been reached with the american medical association for the Dod to receive names addresses and specially information on All 500,000u.s. Physicians. Mayer said similar agreements with the National Council of slate boards of nursing and the american association of nurse anaesthetists arc nearing completion. After finalization 1 believe there will be an excellent Opportunity to com Mence a recruiting program targeted at the health care Community Mayer Lold the House armed services military personnel and compensation subcommittee. "1 have decided to form a Tri service task Force to put that concept into action Mayer also said be recently ordered the services to redirect the composition of the Active medical Force toward War time priorities by capping growth in re source programs for All specialities except those considered to be critical in War time. A spokesman for Mayer said an exam ple of such a resource program is the armed forces health professions scholarship program. We want to ensure that we re using our resources to grow the right kinds of physicians surgeon rather than paediatricians for instance the spokesman said. Mayer recounted numerous Pentagon initiatives contained in a Long term pro Gram Jaunt had this year to improve the capability of the military wartime medi Cal system particularly in the Reserve components by 1992. But he added critical shortfalls still exist in some specialities. He said Reserve Manning Levels have increased by 78 percent for physicians and 68 percent for nurses Over the past live years. But the Dod would still need about 7,000 More physicians and about 32,000 More nurses than it has now to handle the Mission in a global Malti front  James Webb assistant Secretary of de sense for Reserve affairs said the Situa Tion is probably even worse than those figures make it seem. He believes current Dod casualty estimates which help de Termine wartime medical requirements Are inordinately  he said congressional  efforts add to the problem. The ability to provide prompt effective Battlefield medical treatment is an invisible Benefit for service members who Are not at War and it often gets overlooked by Congress when it comes to allocating resource he said. U.s., Italy sign Star wars research agreement Washington