Against a background of very stimulative fiscal and monetary actions, economic activity accelerated in the third quarter. Although an inventory adjustment gave the appearance of an economic pause in the first half, underlying demand for goods and services has remained strong throughout 1967. Both consumer and Government expenditures helped maintain final sales at higher-than-average rates of increase during the first half of 1967. The growth of total demand, however, hesitated as business firms sharply reduced outlays for inventories.