'93/'94 Year-End Review and Outlook : Industry Outlook : Continuing low-grade growth in the national economy, coupled with hopes for stability--if not expansion--in California, is the backdrop for the year in business. Here is an assessment of key industries' prospects.

SAVINGS AND LOANS: Encroachment by mortgage bankers and mutual funds offers a challenge, as does the proposed merger of bank and S&L regulatory agencies. Federal income tax hikes could reduce the pool of home-loan seekers, but a rebound in hiring could release pent-up demand in California for housing--and home loans.